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)
4800 Montgomery Lane, Suite 150
Bethesda, Maryland 20814
(Address of principal executive offices) (Zip code)
Dan Ahrens
4800 Montgomery Lane, Suite 150
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, 2015
EXPLANATORY NOTE: Registrant is filing this amendment to its Form N-CSR for the fiscal quarter ended June 30, 2015 originally filed with the Securities and Exchange Commission on September 8, 2015 (Accession Number 0001144204-15-053981). The purpose of this amendment is to update historical performance accounts in Item 1. Prior disclosure for fund performance since inception was cumulative, and has since been annualized. Except as set forth above, this amendment does not amend, update or change any other items or disclosures found in the original Form N-CSR filing.
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
4800 Montgomery Lane
Suite 150
Bethesda, Maryland 20814
www.advisorshares.com
1.877.843.3831
Annual Report
June 30, 2015
TABLE OF CONTENTS
ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC
June 30, 2015
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The year ending June 30th, 2015 was an exciting year for growth in the actively managed ETF market place. The number of funds grew by 44% to 129 and assets increased by 23% to $20.195 billion (See Exhibit 1 below.) Additionally there were 13 new fund sponsors who entered the market over the last 12 months.
Exhibit 1
As of June 30, 2015 I Source: AdvisorShares
As you can see from Exhibit 2, AdvisorShares offers investors the largest number of actively managed ETFs in the market, with 23 ETFs trading today on both the NYSE Arca and NASDAQ exchanges. An increasingly complex investing environment has created the need for investors to 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.
1
ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC (Continued)
June 30, 2015
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Exhibit 2 As of June 30, 2015 I Source: AdvisorShares |
During this past year, we launched the following innovative actively managed ETFs:
• | MULT — AdvisorShares Sunrise Capital Multi-Strategy ETF |
• | DIVI — AdvisorShares Athena High Dividend ETF |
• | FLRT — AdvisorShares Pacific Asset Enhanced Floating Rate ETF |
We also instituted a change in manager in three of our funds:
• | GTAA — AdvisorShares Global Tactical ETF is now managed by Mark Yusko, CEO of Morgan Creek Capital |
• | EPRO — AdvisorShares EquityPro ETF has a new strategy under the oversight of Bob Baker and Phil Voelker from The Elements Financial Group |
• | YPRO — AdvisorShares YieldPro ETF also has a new strategy under the oversight of Bob Baker and Phil Voelker from The Elements Financial Group |
2
ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC (Continued)
June 30, 2015
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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 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, 2015 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, 2015 was characterized by a wide range of performance for world equities. The MSCI World Index (ACWI) was up 1.43% for the 12 month period. The largest weight in the index, the US, was up over 6.9%., which masked the underlying weakness in world markets. The average country in the AGLS universe was down over -7.5%. China and Hong Kong were the only two countries up by double digits, up 24.6% and 12.4% respectively. Nine countries were down over -15%, including Austria, Brazil, Canada, Chile, Malaysia, Norway, Russia, Spain and Turkey.
Performance for the AdvisorShares Accuvest Global Long Short ETF (NYSE Arca: AGLS) was below that of the ACWI benchmark, returning -4.2% over the period. Underperformance was primarily driven by 3 main factors: 1) A structural underweight to the US, which was again one of the best performing countries in the world, 2) A consistent net long exposure of 40 – 45% to a broad universe of countries, 3) Missing the majority of a fierce market rebound in February of 2015. In fact, the entire underperformance of the fund can be attributed to the return differential from that month.
During the year, there were 6 periods in which the benchmark lost over 1%. AGLS outperformed the benchmark in 5 of those months, and was either flat or positive in 4 of those months. We feel that AGLS is well positioned for a market where the US is not a performance leader, and a market that is characterized by higher volatility and larger downside moves.
The majority of short positions in AGLS are total return swaps. These aggregate positions range in size from 50% to 75% of the net value of the fund. We use these swaps as a way to get exposure in positions that are hard to borrow, or as a way to decrease our overall cost of shorting a particular country index. These positions are entirely for hedging purposes.
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, 2015
4
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
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1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 7/9/2010 | |||||||||||||||||||
AdvisorShares Accuvest Global Long Short ETF NAV | -1.44 | % | -1.29 | % | -0.90 | % | -4.20 | % | -2.17 | % | -4.24 | % | ||||||||||||
AdvisorShares Accuvest Global Long Short ETF Market Price** | -1.34 | % | -1.34 | % | -0.65 | % | -4.20 | % | -2.20 | % | -4.24 | % | ||||||||||||
MSCI World Index (Net) | -2.33 | % | 0.31 | % | 2.63 | % | 1.43 | % | 14.27 | % | 12.22 | % |
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 2.13% and the net expense ratio is 1.97%. (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 1.50%. 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.
5
ADVISORSHARES TRUST
AdvisorShares Athena High Dividend ETF (DIVI)
The AdvisorShares Athena High Dividend ETF (NYSE Arca: DIVI) is built on three drivers that have been shown to deliver strong long term equity performance:
1. | Higher yielding stocks on average generate higher total returns both in the US and internationally. Dividends represent a strong commitment by company management to its shareholders and the higher the yield the stronger this commitment. |
2. | But even with this powerful market discipline, some high dividend yield (DY) companies over promise and see their stock prices drop when they are unable to sustain dividends. In order to reduce this collateral damage, a quality screen based on Athena’s extensive mutual fund holdings database is used to help identify the best stock ideas of the best managers. |
3. | In each sector, International stocks often offer higher dividend yields than do similar US stocks. For this reason, we launched DIVI as a global portfolio rather than as US only. |
Over shorter time periods results can be quite different, as was the case during DIVI’s first year:
• | The biggest negative was a dramatic drop in oil prices during the second half of 2014 as DIVI was launched. Since DIVI is more exposed to energy than other high dividend portfolios, it suffered a greater drawdown. This was evidenced by five underperforming months in a row from September 2014 through January 2015, corresponding to the drop in oil prices from near $100 bbl. to $50 bbl. Since then, prices have stabilized. |
• | But just when oil prices became less of an issue, high DY stocks began to dramatically underperform. High DY stocks were the darling of 2014, but are the goats of 2015. For some perspective, the top DY decile S&P 500 stocks are underperforming the bottom decile by 10% so far in 2015! Since DIVI’s DY is higher than most funds, its performance has suffered more than others in 2015. |
Dividend Yield is a financial ratio that shows how much a company pays out in dividends each year relative to its share price.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 29, 2014* to June 30, 2015
6
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
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1 Month | 3 Month | Year to Date | Since Inception 7/29/2014 | |||||||||||||
AdvisorShares Athena High Dividend ETF NAV | -4.37 | % | -1.95 | % | -5.34 | % | -20.71 | % | ||||||||
AdvisorShares Athena High Dividend ETF Market Price** | -4.32 | % | -1.95 | % | -5.37 | % | -20.65 | % | ||||||||
MSCI All Country World Index (Net) | -2.35 | % | 0.35 | % | 2.66 | % | 0.25 | % |
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 1.42% 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 0.99%. 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 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 EquityPro ETF (EPRO)
The AdvisorShares EquityPro ETF (NYSE Arca: EPRO) returned -1.89% on a Market Price basis, and -2.01% on an NAV basis for the twelve months ended June 30, 2015. While this compares to 7.42% return for the S&P 500 Index, in light of EPRO’s global posture, a comparison to the MSCI World Index, which returned to 1.43% for the same time period, provides an additional perspective.
In October 2014, EPRO adopted a partially defensive position, with only 20% exposure to equities, due in large part to the S&P 500 Index trading under its 200-day moving average. This position was short-lived, however, as the market quickly rebounded, and proceeded to post new highs, including during the month of May 2015.
On May 18, 2015, the Sub-Advisor appointed new portfolio managers for EPRO. We implemented several changes to the EPRO portfolio, including: international equity exposure which was decreased from 40% to 21%, due to less attractive relative valuation vs. U.S. equities and the recent run-up that had taken place in foreign stock markets. The Information Technology sector exposure was increased from 9% to 22%; Financial sector exposure was decreased from 18% to 8%; and the Health Care sector exposure was increased from 12% to 19%. In addition, sector allocations were adjusted in light of our revised approach to sector valuation discipline. As of June 30, 2015, EPRO’s portfolio was over-weighted in Consumer Staples, Health Care and Information Technology. In our opinion, these are the most attractively valued domestic equity sectors, while Financial and Utility companies are more over-valued relative to historical norms, and under-weighted relative to their S&P 500 weightings.
Although risks continued to exist in the securities markets, EPRO remained 98% invested in equities, as of June 30, 2015. Given the structured nature of our investment process, it is significant to note that the S&P 500 Index had continued to trade above its 200-day moving average by approximately 1 – 4% during June 2015, and no part of the U.S. Treasury yield curve was inverted through June 30, 2015. As a result, as of that date, EPRO remained virtually fully exposed to equities going into the second half of 2015. Nonetheless, the investment process is structured with the flexibility to reduce risk in severe down markets, in the event that there is a change in the factors noted in this paragraph.
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.
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.
8
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 10, 2012* to June 30, 2015
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
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1 Month | 3 Month | Year to Date | 1 Year | Since Inception 7/10/2012 | ||||||||||||||||
AdvisorShares EquityPro ETF NAV | -2.57 | % | 0.03 | % | 2.00 | % | -2.01 | % | 8.67 | % | ||||||||||
AdvisorShares EquityPro ETF Market Price** | -2.57 | % | 0.00 | % | 4.67 | % | -1.89 | % | 8.72 | % | ||||||||||
MSCI World Index (Net) | -2.33 | % | 0.31 | % | 2.63 | % | 1.43 | % | 14.93 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. 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 2.38% and the net expense ratio is 1.71%. (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 1.25%. 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.
9
ADVISORSHARES TRUST
AdvisorShares Gartman Gold/Euro ETF (GEUR)
The spot price of gold (funded in US dollars) lagged most major asset classes during the period between 7/1/14 to 6/30/15. However, during this period, gold funded in the Euro currency performed quite well, increasing 8.4%, and outperformed the spot price of gold which was down 11.7%. The AdvisorShares Gartman Gold/Euro ETF’s (NYSE Arca: GEUR) portfolio strategy to provide investors this exposure was executed through the use of exchange traded futures contracts. These derivative contracts provide the most direct and liquid exposure with minimal transaction costs.
The most significant factor affecting gold’s price performance has been the anticipated change in the United States’ monetary policy. The announcement of the end of quantitative easing and the anticipation of interest rate increases has caused the US dollar to get stronger. The softness in gold prices was largely due to its inverse relationship with the US dollar. The economic situation in Euroland was much different with the ECB announcing the start of its own quantitative easing program. This has caused the Euro to depreciate thereby helping GEUR outperform the spot price of gold.
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, 2015
10
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
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1 Month | 3 Month | Year to Date | 1 Year | Since Inception 2/11/2014 | ||||||||||||||||
AdvisorShares Gartman Gold/Euro ETF NAV | -3.24 | % | -5.06 | % | 5.97 | % | 7.33 | % | 6.56 | % | ||||||||||
AdvisorShares Gartman Gold/Euro ETF Market Price** | -3.75 | % | -5.41 | % | 5.73 | % | 6.56 | % | 6.31 | % | ||||||||||
Spot Gold – London Bullion Market Association | -1.71 | % | -1.35 | % | -2.36 | % | -10.95 | % | -6.60 | % |
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 10.84% and the net expense ratio is 0.77%. (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 0.65%. 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.
11
ADVISORSHARES TRUST
AdvisorShares Gartman Gold/Yen ETF (GYEN)
The spot price of gold (funded in US dollars) lagged most major asset classes during the period between 7/1/14 to 6/30/15. However, during this period, gold funded in Japanese Yen currency performed quite well, increasing 6.2% and outperformed the spot price of gold, which was down 11.7%. The AdvisorShares Gartman Gold/Yen ETF’s (NYSE Arca: GYEN) portfolio strategy to provide investors this exposure was executed through the use of exchange traded futures contracts. These derivative contracts provide the most direct and liquid exposure with minimal transaction costs.
The most significant factor affecting gold’s price performance has been the anticipated change in the United States’ monetary policy. The announcement of the end of quantitative easing and the anticipation of interest rate increases has caused the US dollar to get stronger. The softness in gold prices was largely due to its inverse relationship with the US dollar. The economic situation in Japan was much different with Japan’s economy struggling to come out of its two decade recession. Japan had put forth a comprehensive plan with monetary and fiscal stimulus to finally get Japan on economic growth. This has caused the Yen to depreciate thereby helping GYEN outperform the spot price of gold.
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, 2015
12
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
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1 Month | 3 Month | Year to Date | 1 Year | Since Inception 2/11/2014 | ||||||||||||||||
AdvisorShares Gartman Gold/Yen ETF NAV | -2.95 | % | 0.92 | % | 0.61 | % | 6.06 | % | 5.18 | % | ||||||||||
AdvisorShares Gartman Gold/Yen ETF Market Price** | -3.09 | % | 1.15 | % | 0.46 | % | 5.45 | % | 5.33 | % | ||||||||||
Spot Gold – London Bullion Market Association | -1.71 | % | -1.35 | % | -2.36 | % | -10.95 | % | -6.60 | % |
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 4.89% and the net expense ratio is 0.80%. (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 0.65%. 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.
13
ADVISORSHARES TRUST
AdvisorShares Global Echo ETF (GIVE)
The AdvisorShares Global Echo ETF (NYSE Arca: GIVE) returned +2.06% on a Market Price basis and +3.05% on an NAV basis from July 1, 2014 through June 30, 2015 compared to +1.43% for the MSCI World Index and +1.86% for the Barclays Capital U.S. Aggregate Bond Index.
GIVE is a multi-asset class fund that at times shifts allocations between stocks, bonds and cash based on market conditions while investing only in sustainable investment themes.
GIVE is a multi-manager fund with each of the three managers having allocations based on market conditions. Baldwin Brothers has the dual role of managing the asset allocation of the fund as well as serving as the global equity manager. In the past year, in response to market conditions the exposure to stocks was reduced in January, and then increased in June.
We have not used derivatives in the Fund during this year.
A derivative is a security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period May 23, 2012* to June 30, 2015
14
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
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1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 5/23/2012 | |||||||||||||||||||
AdvisorShares Global Echo ETF NAV | -1.61 | % | -1.11 | % | -0.11 | % | 3.05 | % | 7.80 | % | 8.07 | % | ||||||||||||
AdvisorShares Global Echo ETF Market Price** | -2.43 | % | -2.04 | % | -1.20 | % | 2.06 | % | 7.32 | % | 7.75 | % | ||||||||||||
Barclays Capital U.S. Aggregate Bond Index | -1.09 | % | -1.68 | % | -0.10 | % | 1.86 | % | 1.83 | % | 1.93 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. 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 1.50%. 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.
15
ADVISORSHARES TRUST
AdvisorShares Madrona Domestic ETF (FWDD)
The AdvisorShares Madrona Domestic Equity ETF (NYSE Arca: FWDD) gained +5.89% on both an NAV basis and a Market Price Basis compared to a gain of +7.42% for the S&P 500 Index.
U.S. Equities valuations have surpassed long-term historical averages 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, 2015
16
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 6/21/2011 | |||||||||||||||||||
AdvisorShares Madrona Domestic ETF NAV | -1.80 | % | 0.05 | % | 1.71 | % | 5.89 | % | 20.25 | % | 15.16 | % | ||||||||||||
AdvisorShares Madrona Domestic ETF Market Price** | -2.09 | % | -0.02 | % | 1.73 | % | 5.89 | % | 20.30 | % | 15.16 | % | ||||||||||||
S&P 500 Index | -1.94 | % | 0.28 | % | 1.23 | % | 7.42 | % | 17.31 | % | 15.06 | % |
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 1.42% 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 1.25%. 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.
17
ADVISORSHARES TRUST
AdvisorShares Madrona Global Bond ETF (FWDB)
The AdvisorShares Madrona Global Bond ETF (NYSE Arca: FWDB) lost -2.37% on an NAV basis and -2.63% on a Market Price basis versus a gain of +1.86% 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, investors 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. This fund is well represented with these alternative categories of bonds.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011* to June 30, 2015
18
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 6/21/2011 | |||||||||||||||||||
AdvisorShares Madrona Global Bond ETF NAV | -1.50 | % | -1.97 | % | -1.14 | % | -2.37 | % | 2.10 | % | 2.95 | % | ||||||||||||
AdvisorShares Madrona Global Bond ETF Market Price** | -1.54 | % | -2.01 | % | -1.29 | % | -2.63 | % | 2.10 | % | 2.94 | % | ||||||||||||
Barclays Capital U.S. Aggregate Bond Index | -1.09 | % | -1.68 | % | -0.10 | % | 1.86 | % | 1.83 | % | 3.05 | % |
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 1.53% and the net expense ratio is 1.41%. (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 0.95%. 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.
19
ADVISORSHARES TRUST
AdvisorShares Madrona International ETF (FWDI)
The AdvisorShares Madrona International ETF (NYSE Arca: FWDI) lost -5.06% on an NAV basis and -4.82% on a Market Price basis compared to a decline of -4.22% for the MSCI EAFE Index.
As a result of the rebound in Emerging Markets, our research now points to similarly attractive valuations in Emerging Market positions and their Developed Market counterparts. Based on current average foreign valuations, 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, 2015
20
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 6/21/2011 | |||||||||||||||||||
AdvisorShares Madrona International ETF NAV | -2.40 | % | 3.13 | % | 7.58 | % | -5.06 | % | 11.27 | % | 3.90 | % | ||||||||||||
AdvisorShares Madrona International ETF Market Price** | -2.37 | % | 2.71 | % | 7.46 | % | -4.82 | % | 11.16 | % | 3.88 | % | ||||||||||||
MSCI EAFE Index (Net) | -2.83 | % | 0.62 | % | 5.52 | % | -4.22 | % | 11.97 | % | 5.93 | % | ||||||||||||
BNY Mellon Classic ADR Index | -2.72 | % | 1.32 | % | 5.98 | % | -4.24 | % | 10.51 | % | 4.59 | % |
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 1.55% 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 1.25%. 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.
21
ADVISORSHARES TRUST
AdvisorShares Meidell Tactical Advantage ETF (MATH)
The AdvisorShares Meidell Tactical Advantage ETF (NYSE Arca: MATH) gained 3.52% on a Market Price basis and 3.47% on an NAV basis for the year ending June 30, 2015, while the S&P 500 Index rose 7.42% over the same period. Over the past twelve months, the relative performance of the S&P 500 Index has illustrated the changes in investor behavior over this period. In the second half of 2014, U.S. large cap stocks outperformed other U.S. asset classes, as investors became more risk averse following the growing expectation that the Federal Reserve would end quantitative easing by October of last year.
Another challenge for MATH during the second half of 2014 was the Ebola panic during the September to October time frame. Due to the steepness of the stock market’s decline and rebound in such a short period of time, MATH’s quantitative methodology kept it from experiencing the stock market’s sharp loss in value, but was unable to capture much of the early rebound due to the trend-following nature of MATH’s methodology.
As 2014 was coming to a close, small cap stocks began to outperform. This was largely a function of the strengthening U.S. dollar, which investors interpreted as a drag on large multi-national corporations who export goods overseas. The MATH portfolio increased its allocation to small cap stocks in late 2014 and participated in the rally that followed through June of 2015. In early 2015, foreign stocks began outperforming, as the European Central Bank declared its plans for a quantitative easing program. For the first five (5) months of 2015 MATH’s allocation to U.S. small cap and foreign stocks lifted the Fund ahead of most broad U.S. market indexes, but by mid-June of 2015, concerns of Greece defaulting on their loan to the IMF and potentially exiting the European Union, caused MATH shares to underperform the S&P 500 Index.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 23, 2011* to June 30, 2015
22
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 6/23/2011 | |||||||||||||||||||
AdvisorShares Meidell Tactical Advantage ETF NAV | -1.72 | % | -0.64 | % | 2.46 | % | 3.47 | % | 7.63 | % | 5.79 | % | ||||||||||||
AdvisorShares Meidell Tactical Advantage ETF Market Price** | -1.72 | % | -0.64 | % | 3.11 | % | 3.52 | % | 7.13 | % | 5.79 | % | ||||||||||||
S&P 500 Index | -1.94 | % | 0.28 | % | 1.23 | % | 7.42 | % | 17.31 | % | 14.88 | % |
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 2.27% and the net expense ratio is 1.50%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.35%. 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.
23
ADVISORSHARES TRUST
AdvisorShares Morgan Creek Global Tactical ETF (GTAA)
The AdvisorShares Morgan Creek Global Tactical ETF (NYSE Arca: GTAA) returned -3.52% on a Market Price basis and -3.59% on a NAV basis from July 1, 2014 through June 30, 2015 as compared to 7.42% for the S&P 500. Morgan Creek Capital Management began sub advising for GTAA on July 28, 2014. It has returned -3.60% on a Market Price basis and -3.52% on a NAV basis from July 28, 2014 to June 30, 2015 as compared to 6.32% for the S&P 500 and -0.84% for a composite index consisting of 25% MSCI ACWI Index, 25% Barclays Aggregate Bond Index, 25% Bloomberg Commodity Index, and 25% DXY Index.
Although GTAA underperformed the S&P 500 in the second half of calendar year 2014, its return in the first half of calendar year 2015 kept pace with the index until June when Chinese markets sold off materially. The Fund’s modified approach of investing across asset classes has kept the volatility low while providing the ability to invest in uncorrelated opportunities.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period October 26, 2010* to June 30, 2015
24
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 10/25/2010 | |||||||||||||||||||
AdvisorShares Morgan Creek Global Tactical ETF NAV | -3.94 | % | -3.41 | % | -1.44 | % | -3.59 | % | 2.92 | % | 0.98 | % | ||||||||||||
AdvisorShares Morgan Creek Global Tactical ETF Market Price** | -4.02 | % | -3.34 | % | 1.20 | % | -3.52 | % | 2.97 | % | 0.96 | % | ||||||||||||
S&P 500 Index | -1.94 | % | 0.28 | % | 1.23 | % | 7.42 | % | 17.31 | % | 14.99 | % |
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 1.60% 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 1.25%. 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 Newfleet Multi-Sector Income ETF (MINC)
The AdvisorShares Newfleet Multi-Sector Income Fund (NYSE Arca: MINC) returned 0.95% on a Market Price Basis during the fiscal year ending June 30, 2015 compared to a gain of 1.86% for the Barclays Capital U.S. Aggregate Bond Index. During the fiscal year the Fund’s short duration relative to the benchmark in a declining rate environment detracted from performance. Over the last 12 months, yields increased on the short end of the U.S. Treasury curve and decreased on the long end. Overall the yield curve flattened.
The Fund’s allocation to the structured finance sectors (CMBS, non-agency residential mortgage-backed (RMBS), and asset-backed (ABS)) continues to play an important role in the Fund. Valuations remain attractive in the areas in which we invest, and this segment of the market offers diversification to sectors more sensitive to global macro fears. In addition, it offers diversification to the corporate credit allocation within the portfolio. Our consumer focus within ABS has been beneficial as the U.S. consumer continues to show the ability to lift the U.S. economy. CMBS has benefited from the strengthening U.S. economy and demand for U.S. real estate; underlying commercial real estate fundamentals remain strong and for the most part are not hurt by low oil prices. RMBS benefits from the continuing improvement in the housing market.
High beta sectors such as corporate high yield and bank loans contributed to the Fund’s positive performance. Both benefited from investors’ higher risk appetite and reach for yield. The corporate high yield sector has performed well in an environment where rates have backed up. The sector has benefited from continued positive fundamentals (including low defaults), demand for yield (including strong demand from foreign investors), good relative value, and overall strength in U.S. risk assets. Issue selection within high yield also has contributed positively to performance. High yield bank loans, too, have performed well in a rising rate environment. The sector also has outperformed as a result of continued favorable technicals (due to demand from Collateralized Loan Obligation (CLO) issuance, lower loan fund outflows, and low net issuance), positive fundamentals (including low defaults), demand for yield, good relative value, and strength in U.S. risk assets.
Within the corporate investment grade sector the Fund’s overweight to BBB rated securities benefitted performance as they outperformed the broader corporate investment grade index.
We are constructive on sectors with a yield advantage to U.S. Treasuries as credit fundamentals remain positive and spreads remain at attractive levels. With positive fundamentals such as low defaults and good interest coverage, modest demand for fixed income by investors, and a supportive environment for fixed income, spread sectors continue to offer attractive investment opportunities to investors searching for total return and yield. Some of the specific sectors where we see value are higher quality corporate high yield, out-of-index/off-the-run asset-backed securities, high yield bank loans, new issue corporate investment grade and selective emerging market sovereigns.
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, corporate high quality bonds and asset backed securities. We have continued to overweight spread sectors, seeking to take advantage of higher yields and wider spreads.
The 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.
An Asset Backed Security (ABS) 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.
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.
26
A Collateralized Loan Obligation (CLO) is a security backed by a pool of debt, often low-rated corporate loans.
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, 2015
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 3/19/2013 | ||||||||||||||||
AdvisorShares Newfleet Multi-Sector Income ETF NAV | -0.22 | % | 0.22 | % | 1.34 | % | 1.04 | % | 1.84 | % | ||||||||||
AdvisorShares Newfleet Multi-Sector Income ETF Market Price** | -0.26 | % | 0.08 | % | 1.11 | % | 0.95 | % | 1.80 | % | ||||||||||
Barclays Capital U.S. Aggregate Bond Index | -1.09 | % | -1.68 | % | -0.10 | % | 1.86 | % | 1.71 | % |
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 0.84% and the net expense ratio is 0.76%. (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 0.75%. 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 Pacific Asset Enhanced Floating Rate ETF (FLRT)
The AdvisorShares Pacific Asset Enhanced Floating Rate ETF (NYSE Arca: FLRT) earned a total return 0.47% (NAV) and 0.62% (Market Price) for the three months ending June 30, 2015, and has provided return of 0.71% (Market Price) and 0.47% (NAV) since inception. For the three months ending June 30, 2015, the Credit Suisse Institutional Leveraged Loan Index (CSILLI) was up 0.98%, with the S&P/LSTA 100 Index returning -0.09%. This underperformance was attributed to FLRT’s exposure to specific sectors, including metals/minerals, utilities and consumer durables. Utilities and metals/minerals lagged the Index and the underperformance was due to declining coal and iron ore prices.
We continue to hold higher-rated, more liquid loans within FLRT. We believe they will continue to strike the best balance among limited rate sensitivity, attractive income and reasonable default risk. The portfolio also maintains a significant exposure to non-bank loan assets, primarily through lower-than-average duration high yield bonds.
FLRT dynamically utilizes Total Return Swaps to add incremental bank loan credit risk to the fund. We believe that, over time, investors will benefit from having a modestly levered exposure to the bank loan market. Our ETF risk committee has targeted leverage equivalent to up to 20% of the assets of the fund. Due to the relative value of leverage available, we’ve elected to hold the leverage component closer to 10% of the size of the fund currently.
A Total Return Swap is a swap agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains.
A Bank Loan is a loan or a line of credit expended to a corporation from a traditional bank.
Leverage is the amount of debt used to finance a firm’s assets.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period February 18, 2015* to June 30, 2015
28
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
![]() | ![]() | ![]() | ![]() | |||||||||
1 Month | 3 Month | Since Inception 2/18/2015 | ||||||||||
AdvisorShares Pacific Asset Enhanced Floating Rate ETF NAV | -0.52 | % | 0.47 | % | 0.47 | % | ||||||
AdvisorShares Pacific Asset Enhanced Floating Rate ETF Market Price** | -0.50 | % | 0.62 | % | 0.71 | % | ||||||
S&P/LSTA U.S. Leveraged Loan 100 Index | -0.86 | % | -0.09 | % | 0.38 | % | ||||||
S&P 500 Index | -1.94 | % | 0.28 | % | -1.02 | % | ||||||
U.S. OE Bank Loan Index | -0.47 | % | 0.57 | % | 1.29 | % |
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) is 1.16% and the net expense ratio is 1.10%. (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 1.10%. 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/LSTA U.S. Leveraged Loan 100 Index is designed to track the market-weighted performance of the largest institutional leveraged loans based on market weightings, spreads and interest payments. One cannot invest directly in an index.
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.
Bank Loan: funds that invest primarily in floating-rate bank loans instead of bonds. In exchange for their credit risk, they offer high interest payments that typically float above a common short-term benchmark.
29
ADVISORSHARES TRUST
AdvisorShares Peritus High Yield ETF (HYLD)
The AdvisorShares Peritus High Yield ETF (NYSE Arca: HYLD) returned -16.88% during fiscal year ending June 30, 2015 on a market price basis and -16.82% on a NAV basis, compared to a return of -0.40% for the Barclays Capital U.S. Corporate High Yield Index. Our underperformance relative to the index was caused largely by our energy exposure during the final quarter of 2014. Based on the research we had done and our in-depth understanding of the energy market, we had made a strategic allocation to the this sector during 2014, and we, like most of the market, were surprised by the swiftness and severity of the decline in oil prices in the latter half of 2014 and into early 2015. No one, including us, projected a 50% decline in oil prices, especially given that global energy markets were merely in a slight over-supply situation and demand was still growing. Another related factor that had an impact on the portfolio was the decision we had made to include dividend paying equities in the portfolio, many of them in the energy space. During 2014, in an effort to protect income and, in several cases, execute on our energy thesis, we had decided to include selective master limited partnerships (MLPs) and dividend paying equities in the portfolio. While this did serve to protect income and provide what we saw as attractive yield, it did introduce an additional level of volatility to the portfolios, especially as we saw the swift decline in oil prices.
As 2015 began and the reality of low oil prices was evident for the time being, we cut our energy holdings by more than half of what it was when we exited 2014, though this didn’t mean we eliminated all of our energy exposure. We are still long term believers that oil prices will have to rise from here, but that may take the better part of a year to happen. Additionally, during the first half of calendar 2015 we eliminated our equity positions. While our intention with purchasing dividend equities was to protect the fund’s yield and take advantage of various yield-bearing opportunities within the company’s entire capital structure, the latter part of 2014 and early 2015 demonstrated that these equities produced excessive volatility within the fund. As of the end of the fiscal year, we have exited our equity positions and do not intend to undertake further equity investments at this time. Finally we are taking steps to broaden out our portfolio in terms of the number of holdings, including adding some more recognizable and highly liquid names that are more familiar to our market makers but still meet our investment criteria. For more detail about our strategy behind these changes within the portfolio, see our recent piece “The Past, Present and Future,” as well as our “Mid-Year Update,” both found on the HYLD website (http://hyld.advisorshares.com).
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period December 1, 2010* to June 30, 2015
30
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 12/1/2010 | |||||||||||||||||||
AdvisorShares Peritus High Yield ETF NAV | -1.40 | % | 0.05 | % | 0.41 | % | -16.82 | % | 2.21 | % | 3.72 | % | ||||||||||||
AdvisorShares Peritus High Yield ETF Market Price** | -1.38 | % | 0.37 | % | 2.51 | % | -16.88 | % | 2.14 | % | 3.68 | % | ||||||||||||
Barclays U.S. Corporate High Yield Index | -1.49 | % | 0.00 | % | 2.53 | % | -0.40 | % | 6.81 | % | 7.57 | % |
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 1.18%. (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 1.35%. 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.
31
ADVISORSHARES TRUST
AdvisorShares Pring Turner Business Cycle ETF (DBIZ)
The AdvisorShares Pring Turner Business Cycle ETF (NYSE Arca: DBIZ) finished -12.50% on a market price basis and -12.42% on a NAV basis for the year ending June 30, 2015. In comparison, the S&P 500 was up 7.42%. 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 = 0.53) is significantly lower than the S&P 500’s (Beta = 1.0).
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 2015 our proprietary business cycle stage work resides in “Stage 2”, a part of the cycle that typically favors stocks and disfavors inflation sensitive commodities. The current environment is in stark contrast to a year ago when inflation was picking up and natural resource themes were leading the market higher. For instance, energy and metals sectors were strong going into the Fall of 2014 when oil and other commodities abruptly started a precipitous decline and hurt fund performance. Over a period of several months late in 2014, DBIZ was re-positioned with broader diversification by sector. Currently, the fund has its largest sector weightings in Financials, Technology, Staples and Consumer Discretionary stocks. For now, inflation sensitive areas are de-emphasized in the fund. The current strategy for the fixed income side of the portfolio is to keep a relatively low bond allocation and use a short/intermediate term bond ladder approach to help protect against higher interest rates.
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, 2015
32
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
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1 Month | 3 Month | Year to Date | 1 Year | Since Inception 12/18/2012 | ||||||||||||||||
AdvisorShares Pring Turner Business Cycle ETF NAV | -3.27 | % | -1.45 | % | -2.10 | % | -12.42 | % | 1.08 | % | ||||||||||
AdvisorShares Pring Turner Business Cycle ETF Market Price** | -3.24 | % | -1.38 | % | -2.03 | % | -12.50 | % | 1.09 | % | ||||||||||
S&P 500 Index | -1.94 | % | 0.28 | % | 1.23 | % | 7.42 | % | 17.47 | % |
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 2.74% and the net expense ratio is 1.68%. (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 1.49%. 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.
33
ADVISORSHARES TRUST
AdvisorShares QAM Equity Hedge ETF (QEH)
The AdvisorShares QAM Equity Hedge ETF (NYSE: Arca: QEH) incepted on August 7, 2012. For the period ending 6/30/2015 QEH has returned 6.00% on a Net Asset Value annualized basis and 6.01% on a Market Price annualized basis since inception. For the one year period ending 6/30/2015 QEH returned 1.48% on an NAV basis and 1.60% on a Market Price basis. Performance in the fund was slightly behind our benchmark, the HFRI Equity Hedge (Total) Index, 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 25 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 2015, we believe dominant performance of the US equity markets has begun to fade against its global counterparts. 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. Throughout the year, there was a tug of war between a friendly low interest rate environment and unfriendly geopolitical situations ranging from Russia and Ukraine to Greece and the European Union. In addition, the concerns of a slowdown in China weighed on markets. As the markets bounced up and down, our models indicated that the universe of long/short equity hedge fund managers, in aggregate, kept their net exposures in a fairly tight band around 60% net long. Within economic sectors, Information Technology was the largest allocation followed by Healthcare, Financials and Consumer Discretionary. Net exposure to North America remained the largest geographic exposure, however during the year exposures to developed Non-U.S., emerging, and frontier markets were rising.
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.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period August 7, 2012* to June 30, 2015
34
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
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1 Month | 3 Month | Year to Date | 1 Year | Since Inception 8/7/2012 | ||||||||||||||||
AdvisorShares QAM Equity Hedge ETF NAV | -1.41 | % | 0.49 | % | 2.39 | % | 1.48 | % | 6.00 | % | ||||||||||
AdvisorShares QAM Equity Hedge ETF Market Price** | -0.80 | % | 0.60 | % | 3.30 | % | 1.60 | % | 6.01 | % | ||||||||||
HFRI Equity Hedge (Total) Index | -0.75 | % | 2.01 | % | 4.05 | % | 2.59 | % | 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 3.12% and the net expense ratio is 2.16%. (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 1.50%. 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 6/30/2015, the HFRI Equity Hedge Index returned 8.35%. |
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.
35
ADVISORSHARES TRUST
AdvisorShares Ranger Equity Bear ETF (HDGE)
The AdvisorShares Ranger Equity Bear ETF (NYSE Arca: HDGE) returned -7.72% on a Market Price basis and -7.64% on an NAV basis from July 1, 2014 through June 30, 2015 compared to +7.42% 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 and to some extent several large capitalization holdings. The fund remained nearly fully invested over the entire 12 month period in aggressive growth stocks despite equity markets pushing to new highs.
The valuation of market indices on a price/revenue basis is at a multi-decade high. Sentiment among both professional and individual investors has reached extremes on numerous occasions over the past 12 months. The percentage of unprofitable IPOs reached a 25-year high over the past 12 months. In addition, household liquidity has turned down while margin leverage has increased. As a result, the fund managers have maintained an aggressive short position for the fund.
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 January 27, 2011* to June 30, 2015
36
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 1/27/2011 | |||||||||||||||||||
AdvisorShares Ranger Equity Bear ETF NAV | 0.74 | % | -1.80 | % | -5.14 | % | -7.64 | % | -22.45 | % | -17.14 | % | ||||||||||||
AdvisorShares Ranger Equity Bear ETF Market Price** | 0.65 | % | -1.89 | % | -4.98 | % | -7.72 | % | -22.46 | % | -17.14 | % | ||||||||||||
S&P 500 Index | -1.94 | % | 0.28 | % | 1.23 | % | 7.42 | % | 17.31 | % | 13.47 | % |
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 2.92%. (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 1.85%. 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 Sage Core Reserves ETF (HOLD)
The AdvisorShares Sage Core Reserves ETF (NYSE Arca: HOLD) returned 0.00% for the year ending June 30, 2015 on a NAV basis. The Barclays 1 – 3 Month U.S. Treasury Bill Index, a common short-term benchmark, in contrast returned 0.01% over the same period.
During the 12 months ending June 30 2015, fixed income investors experienced significant volatility of credit spreads and interest rates. Changing Fed policy contributed to volatility as the Federal Reserve ended its QE3 asset-purchase program in October 2014, and has more recently shifted its communications to manage expectations toward tighter monetary policy in the future.
Despite record monetary policy stimulus in the US and worldwide, economic growth and inflation have remained stubbornly low. The US unemployment rate fell from 6.3% to 5.5% over the same period. As of June 30, US GDP growth and CPI (year-over-year) were 2.9% and 0%, respectively. The 10-year Treasury yield began the period at 2.53%, dropped below 2% and ended the period at 2.35%. Investment-grade credit spreads began the period at 0.96% and ended it at 1.37%.
During this time of turbulence we have maintained a high-quality, defensive fixed income allocation with average portfolio duration hovering slightly above half a year, including short futures positions. We maintained broad diversification through exposure to assets in the US government, corporate, mortgage-backed and asset-backed sectors, among others.
Credit Spread is the spread between Treasury securities and non-Treasury securities that are identical in all respects except for quality rating.
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.
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.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 14, 2014* to June 30, 2015
38
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
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1 Month | 3 Month | Year to Date | 1 Year | Since Inception 1/14/2014 | ||||||||||||||||
AdvisorShares Sage Core Reserves ETF NAV | -0.03 | % | 0.07 | % | 0.24 | % | 0.00 | % | 0.07 | % | ||||||||||
AdvisorShares Sage Core Reserves ETF Market Price** | -0.03 | % | 0.08 | % | 0.26 | % | 0.00 | % | 0.09 | % | ||||||||||
Barclays 1 – 3 Month U.S. Treasury Bill Index | 0.00 | % | 0.00 | % | 0.01 | % | 0.01 | % | 0.02 | % |
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) is 0.73% 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 0.35%. 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.
39
ADVISORSHARES TRUST
AdvisorShares STAR Global Buy-Write ETF (VEGA)
The AdvisorShares STAR Global Buy-Write ETF (NYSE Arca: VEGA) gained 1.49% for the year ending June 30, 2015 on a Market Price basis and 1.60% on an NAV basis. By comparison, VEGA’s Policy Benchmark* gained 1.98% over the same period.
In addition, for the year VEGA achieved a beta of just under 0.60 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.
VEGA differs from other strictly formulaic BuyWrite funds in several ways, notably:
1. | Invests in a global “go anywhere” portfolio |
2. | Invests in fixed-income as well as equity securities |
3. | Adjusts the percent covered of the underlying positions, depending on the current volatility regime, which allows for more appreciation potential when volatility is high. |
4. | Engages in “volatility-based reinvestment” by redeploying strategic cash reserves when volatility is high and prices are lower. |
5. | Uses protective puts as a tactical overlay |
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.
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. |
40
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period September 17, 2012* to June 30, 2015
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
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1 Month | 3 Month | Year to Date | 1 Year | Since Inception 9/17/2012 | ||||||||||||||||
AdvisorShares STAR Global Buy-Write ETF NAV | -1.63 | % | -0.11 | % | 0.49 | % | 1.60 | % | 2.55 | % | ||||||||||
AdvisorShares STAR Global Buy-Write ETF Market Price** | -1.63 | % | 0.07 | % | 0.60 | % | 1.49 | % | 2.56 | % | ||||||||||
MSCI World Index (Net) | -2.33 | % | 0.31 | % | 2.63 | % | 1.43 | % | 11.91 | % |
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 1.94% 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 1.85%. 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.
41
ADVISORSHARES TRUST
AdvisorShares Sunrise Global Multi-Strategy ETF (MULT)
The AdvisorShares Sunrise Global Multi-Strategy ETF (NASDAQ: MULT) returned a -2.61% on a Market Price basis and -2.58% on an NAV basis from inception through June 30th, 2015 as compared to 7.92% for the Barclays Hedge BTOP50 Index.
During the period in question, generally positive equity futures, bond futures and ETF trading results were undercut by sub-optimal currency future trading results. The primary culprit for the currency challenges was an inordinate amount of short term price vacillation, particularly in the case of the Swiss franc which since a series of unexpected interventionary moves by the Swiss monetary authorities in January 2015, has demonstrated unprecedented volatility swings that seasoned investors such as Sunrise have not seen in more than three decades of trading. Overall, the diversified nature of the total MULT portfolio muted the effects of currency challenges to some degree but the product’s outcome to date was nonetheless undermined.
Looking forward Sunrise would expect the MULT portfolio to achieve even better balance and would expect the strategy to begin to gain traction across global equity, bond and currency markets, particularly if those markets begin to demonstrate more defined patterns of directional volatility as opposed to what have been largely “whippy” markets since MULT’s July 2014 inception.
Futures are a financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 8, 2014* to June 30, 2015
42
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
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1 Month | 3 Month | Year to Date | Since Inception 7/8/2014 | |||||||||||||
AdvisorShares Sunrise Global Multi-Strategy ETF NAV | -0.12 | % | -0.62 | % | -2.37 | % | -2.58 | % | ||||||||
AdvisorShares Sunrise Global Multi-Strategy ETF Market Price** | -0.38 | % | -0.54 | % | -0.21 | % | -2.61 | % | ||||||||
Barclay Hedge BTOP50 Index | -0.46 | % | -1.85 | % | 1.51 | % | 7.92 | % |
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 2.47% and the net expense ratio is 1.89%. (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 1.75%. 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 BTOP50 Index seeks to replicate the overall composition of the managed futures industry with regard to trading style and overall market exposure. The BTOP50 employs a top-down approach in selecting its constituents. The largest investable trading advisor programs, as measured by assets under management, are selected for inclusion in the BTOP50. In each calendar year the selected trading advisors represent, in aggregate, no less than 50% of the investable assets of the Barclay CTA Universe. One cannot invest directly in an index.
43
ADVISORSHARES TRUST
AdvisorShares TrimTabs Float Shrink ETF (TTFS)
In the past fiscal year, the S&P 500 Index gained 7.42%, while the Russell 3000 Index rose 7.29%. The AdvisorShares TrimTabs Float Shrink ETF (NYSE Arca: TTFS) outperformed both broad-market indices with a total return of 12.06% net of all fees. During the first half of 2015, the fund advanced 3.11%, more than double the return of the S&P 500 Index (1.23%), while outperforming the Russell 3000 Index by 1.17%. If we look back further, TTFS has established a 23.13% lead in cumulative performance versus the S&P 500 Index since its inception on October 4, 2011.
In the first six months of 2015, new stock buyback authorizations, which contribute over 20% to total earnings growth, have already exceeded full-year totals for 2008, 2009, 2010, and 2012. The float shrink strategy we manage further serves to differentiate companies using free cash flow to repurchase stocks from those that use debt.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period October 4, 2011* to June 30, 2015
44
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | 3 Year | Since Inception 10/4/2011 | |||||||||||||||||||
AdvisorShares TrimTabs Float Shrink ETF NAV | -1.66 | % | -0.47 | % | 3.11 | % | 12.06 | % | 20.59 | % | 23.78 | % | ||||||||||||
AdvisorShares TrimTabs Float Shrink ETF Market Price** | -1.72 | % | -0.50 | % | 3.09 | % | 11.99 | % | 20.49 | % | 23.78 | % | ||||||||||||
Russell 3000 Index | -1.67 | % | 0.14 | % | 1.94 | % | 7.29 | % | 17.73 | % | 20.56 | % |
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 1.16% 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 0.99%. 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.
45
ADVISORSHARES TRUST
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF (AADR)
The AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF (NYSE Arca: AADR) returned +0.36% from July 1, 2014 to the period ended June 30, 2015, outperforming the MSCI EAFE Index which returned -4.22%. Importantly, AADR delivered a positive return in a down year.
While our bottom-up structural biases (underweight Financials & Telecom, overweight Tech & Health Care) were a tailwind overall, the majority of our outperformance was driven by positive stock selection. The vast majority of AADR’s outperformance for the fiscal year ended June 30, 2014 was driven by stock selection, which was positive in each of the last four quarters.
Noting once more that there are indeed environments — such as the first half of last year — that are hostile to AADR’s approach, we’re pleased to report that we’ve had four successive quarters of “good” conditions. There was no artificial size distinction (in ACWI ex US, Small outperformed Large, but just barely), but there was an unambiguous distinction in favor of profitability: higher ROE outperformed lower ROE.
What we wrote nine months ago still holds true: “. . . mean reversion alone should benefit AADR over the next couple of years.” This seems to have gone as hoped and should continue for awhile longer. But best of all it reinforces our conviction that turmoil in the world creates exciting new investment opportunities and refocuses the market on structurally high-quality businesses (those with growing moats and strong long-term tailwinds) rather than mediocre businesses benefitting from temporary/cyclical phenomena.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 21, 2010* to June 30, 2015
46
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
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 | -3.20 | % | 0.76 | % | 5.28 | % | 0.36 | % | 11.19 | % | 9.93 | % | ||||||||||||
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF Market Price** | -3.37 | % | 0.58 | % | 4.93 | % | 0.19 | % | 11.13 | % | 9.88 | % | ||||||||||||
MSCI EAFE Index (Net) | -2.83 | % | 0.62 | % | 5.52 | % | -4.22 | % | 11.97 | % | 8.57 | % | ||||||||||||
BNY Mellon Classic ADR Index TR | -2.72 | % | 1.32 | % | 5.98 | % | -4.24 | % | 10.51 | % | 7.26 | % |
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 1.69% and the net expense ratio is 1.27%. (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 1.25%. 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.
47
ADVISORSHARES TRUST
AdvisorShares YieldPro ETF (YPRO)
The AdvisorShares YieldPro ETF (NASDAQ: YPRO) provided a total Market Price return of -5.20% and an NAV return of -4.92% over the twelve-month period ending June 30, 2015. This compares to the Barclays Capital U.S. Aggregate Bond Index, which returned 1.86% over the same time period.
We have written in the past about the excesses we were observing in a variety of markets, most specifically the loan and high yield markets. We believed that the market was underpricing a variety of risks, including but not limited to, the risks of a rise in interest rates, a resurgence of the European debt crisis, and a potential liquidity crisis in the high yield market and the loan market.
On May 18, 2015, the Sub-Advisor appointed new portfolio managers for YPRO. The new managers implemented several changes to YPRO’s portfolio, including: common stock holdings which were replaced with bonds; High yield bond holdings were reduced from 30% to 20%; the average effective duration of the bond holdings was reduced from 8 years to 3.3 years; and interest rate risk would be managed by targeted maturity management, as opposed to through the use of active hedging strategies, which had been the case prior to May 2015.
As of June 30th, YPRO’s portfolio was 100% invested in domestic fixed income securities and cash equivalents. As of that date, we evaluated the risk of holding longer-term maturity fixed income securities as relatively high. As a result, we targeted a duration of 3.25 years. The only longer-term holdings in the portfolio, as of June 30th, consisted of a 15% allocation to the municipal bond market. Historically, municipals have tended to be less volatile than other segments of the longer-term bond market. Credit risk is also managed with targeted holdings. As of June 30, YPRO was targeting 20% in the high-yield sector with a specific maturity target of less than 5 years. 81% of the YPRO portfolio was invested in investment grade securities. We intend to continue to watch the Fund’s exposure to high yield bonds, as high yield bonds have historically been highly correlated with equity market volatility.
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.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period March 4, 2014* to June 30, 2015
48
HISTORICAL PERFORMANCE
Total Return as of June 30, 2015
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
1 Month | 3 Month | Year to Date | 1 Year | Since Inception 3/4/2014 | ||||||||||||||||
AdvisorShares YieldPro ETF NAV | -0.50 | % | -1.52 | % | -1.76 | % | -4.92 | % | -2.32 | % | ||||||||||
AdvisorShares YieldPro ETF Market Price** | -0.63 | % | -1.69 | % | -1.68 | % | -5.20 | % | -2.45 | % | ||||||||||
Barclays Capital U.S. Aggregate Bond Index | -1.09 | % | -1.68 | % | -0.10 | % | 1.86 | % | 2.95 | % |
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 1.51%. (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 1.25%. 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.
49
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, 2015 and held for the period ended June 30, 2015.
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 1/1/2015 | Ending Account Value 6/30/2015 | Annualized Expense Ratio for the Period(1) | Expenses Paid | ||||||||||||
AdvisorShares Accuvest Global Long Short ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 991.00 | 1.50 | % | $ | 7.40 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,017.36 | 1.50 | % | $ | 7.50 | ||||||||
AdvisorShares Athena High Dividend ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 946.60 | 0.99 | % | $ | 4.78 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,019.89 | 0.99 | % | $ | 4.96 | ||||||||
AdvisorShares EquityPro ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,020.00 | 1.25 | % | $ | 6.26 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.60 | 1.25 | % | $ | 6.26 | ||||||||
AdvisorShares Gartman Gold/Euro ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,059.70 | 0.65 | % | $ | 3.32 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 |
50
ADVISORSHARES TRUST
Shareholder Expense Examples (continued)
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Fund Name | Beginning Account Value 1/1/2015 | Ending Account Value 6/30/2015 | Annualized Expense Ratio for the Period(1) | Expenses Paid | ||||||||||||
AdvisorShares Gartman Gold/Yen ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,006.10 | 0.65 | % | $ | 3.23 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | ||||||||
AdvisorShares Global Echo ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 998.90 | 1.50 | % | $ | 7.43 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,017.36 | 1.50 | % | $ | 7.50 | ||||||||
AdvisorShares Madrona Domestic ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,017.10 | 1.25 | % | $ | 6.25 | ||||||||
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 | $ | 988.60 | 0.95 | % | $ | 4.68 | ||||||||
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 | $ | 1,075.80 | 1.25 | % | $ | 6.43 | ||||||||
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 | $ | 1,024.60 | 1.35 | % | $ | 6.78 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.10 | 1.35 | % | $ | 6.76 | ||||||||
AdvisorShares Morgan Creek Global Tactical ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 985.60 | 1.25 | % | $ | 6.15 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.60 | 1.25 | % | $ | 6.26 | ||||||||
AdvisorShares Newfleet Multi-Sector Income ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,013.40 | 0.75 | % | $ | 3.74 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,021.08 | 0.75 | % | $ | 3.76 | ||||||||
AdvisorShares Pacific Asset Enhanced Floating Rate ETF(2) | ||||||||||||||||
Actual | $ | 1,000.00 | 1,004.70 | 1.10 | % | $ | 3.99 | |||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | 1,019.34 | 1.10 | % | $ | 5.51 | |||||||||
AdvisorShares Peritus High Yield ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,004.10 | 1.27 | % | $ | 6.31 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.50 | 1.27 | % | $ | 6.36 | ||||||||
AdvisorShares Pring Turner Business Cycle ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 979.00 | 1.49 | % | $ | 7.31 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,017.41 | 1.49 | % | $ | 7.45 |
51
ADVISORSHARES TRUST
Shareholder Expense Examples (continued)
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Fund Name | Beginning Account Value 1/1/2015 | Ending Account Value 6/30/2015 | Annualized Expense Ratio for the Period(1) | Expenses Paid | ||||||||||||
AdvisorShares QAM Equity Hedge ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,023.90 | 1.50 | % | $ | 7.53 | ||||||||
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 | $ | 948.60 | 1.65 | % | $ | 7.97 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,016.61 | 1.65 | % | $ | 8.25 | ||||||||
AdvisorShares Sage Core Reserves ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,002.40 | 0.35 | % | $ | 1.74 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,023.06 | 0.35 | % | $ | 1.76 | ||||||||
AdvisorShares STAR Global Buy-Write ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,004.90 | 1.85 | % | $ | 9.20 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,015.62 | 1.85 | % | $ | 9.25 | ||||||||
AdvisorShares Sunrise Global Multi-Strategy ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 976.30 | 1.75 | % | $ | 8.58 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,016.12 | 1.75 | % | $ | 8.75 | ||||||||
AdvisorShares TrimTabs Float Shrink ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,031.10 | 0.99 | % | $ | 4.99 | ||||||||
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 | $ | 1,052.80 | 1.25 | % | $ | 6.36 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,018.60 | 1.25 | % | $ | 6.26 | ||||||||
AdvisorShares YieldPro ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 982.40 | 1.11 | % | $ | 5.46 | ||||||||
Hypothetical (assuming a 5% return before expenses) | $ | 1,000.00 | $ | 1,019.29 | 1.11 | % | $ | 5.56 |
(1) | Expense ratios reflect expense caps through the period ended June 30, 2015. |
(2) | Fund commenced operations on February 18, 2015. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 132/365 (to reflect commencement of operation). |
52
ADVISORSHARES ACCUVEST GLOBAL LONG SHORT ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
EXCHANGE TRADED FUNDS — 78.1% | |||||||||
Equity Fund — 78.1% | |||||||||
Deutsche X-trackers MSCI Germany Hedged Equity ETF | 20,450 | $ | 513,295 | ||||||
Deutsche X-trackers MSCI Japan Hedged Equity ETF(a) | 28,371 | 1,185,340 | |||||||
First Trust Large Cap Core AlphaDEX Fund(a) | 59,411 | 2,723,401 | |||||||
iShares Core S&P 500 ETF(a) | 4,590 | 951,140 | |||||||
iShares MSCI China ETF(a) | 28,805 | 1,614,232 | |||||||
iShares MSCI Hong Kong ETF(a) | 65,154 | 1,469,874 | |||||||
iShares MSCI Israel Capped ETF(a) | 18,819 | 967,861 | |||||||
iShares MSCI South Korea Capped ETF | 6,200 | 341,682 | |||||||
iShares MSCI Sweden ETF(a) | 21,137 | 671,522 | |||||||
iShares MSCI Taiwan ETF | 26,233 | 413,957 | |||||||
Total Exchange Traded Funds (Cost $11,054,011) | 10,852,304 | ||||||||
MONEY MARKET FUND — 18.7% | |||||||||
Dreyfus Cash Management — Investor Class, 0.00%(b) (Cost $2,591,519) | 2,591,519 | 2,591,519 | |||||||
Total Investments — 96.8% (Cost $13,645,530) | 13,443,823 | ||||||||
Other Assets in Excess of Liabilities — 3.2% | 448,572 | ||||||||
Net Assets — 100.0% | $ | 13,892,395 |
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 $5,615,680 which includes cash in the amount of $367,724 as of June 30, 2015. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2015. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
![]() | ![]() | |||
% of Net Assets | ||||
Equity Fund | 78.1 | % | ||
Money Market Fund | 18.7 | |||
Total Investments | 96.8 | |||
Other Assets in Excess of Liabilities | 3.2 | |||
Net Assets | 100.0 | % |
Total Return Swaps contracts outstanding as of June 30, 2015:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Reference Entity | Number of Contracts | Annual Financing Rate Received (Paid) | Termination Date | Notional Amounts | Fair Value | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
iShares MSCI Austria Capped ETF | (43,200 | ) | (4.75 | )% | 6/08/2017 | $ | (711,081 | ) | $ | (694,603 | ) | $ | 16,478 | |||||||||||
iShares MSCI Brazil Capped ETF | (21,380 | ) | (0.99 | ) | 6/08/2017 | (701,050 | ) | (714,131 | ) | (13,081 | ) | |||||||||||||
iShares MSCI Chile Capped ETF | (35,545 | ) | (2.00 | ) | 6/08/2017 | (1,406,110 | ) | (1,376,208 | ) | 29,902 | ||||||||||||||
iShares MSCI Indonesia ETF | (29,053 | ) | (3.99 | ) | 6/08/2017 | (712,089 | ) | (683,931 | ) | 28,158 | ||||||||||||||
iShares MSCI Malaysia ETF | (110,815 | ) | (0.99 | ) | 6/08/2017 | (1,397,377 | ) | (1,360,500 | ) | 36,877 | ||||||||||||||
iShares MSCI Mexico Capped ETF | (12,082 | ) | (0.99 | ) | 6/08/2017 | (697,131 | ) | (695,470 | ) | 1,661 | ||||||||||||||
iShares MSCI Singapore ETF | (54,225 | ) | (1.24 | ) | 6/08/2017 | (691,911 | ) | (691,941 | ) | (30 | ) | |||||||||||||
iShares MSCI Switzerland Capped ETF | (20,060 | ) | (1.74 | ) | 6/08/2017 | (708,519 | ) | (673,826 | ) | 34,693 | ||||||||||||||
Net Unrealized Appreciation | $ | 134,658 |
Morgan Stanley acts as the counterparty to the total return swap contracts listed above. The Fund either receives fees from, or pays fees to, the counterparty, depending upon the total return of the benchmark, and the agreed-upon financing rate.
See accompanying Notes to Financial Statements.
53
ADVISORSHARES ATHENA HIGH DIVIDEND ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS — 99.3% | |||||||||
Agriculture — 2.0% | |||||||||
Philip Morris International, Inc. | 3,869 | $ | 310,178 | ||||||
Banks — 2.7% | |||||||||
Banco de Chile (Chile)(a)(b) | 6,175 | 406,809 | |||||||
Chemicals — 5.7% | |||||||||
Braskem SA (Brazil)(b) | 51,307 | 444,319 | |||||||
Sociedad Quimica y Minera de Chile SA (Chile)(b) | 26,624 | 426,516 | |||||||
Total Chemicals | 870,835 | ||||||||
Commercial Services — 2.1% | |||||||||
Macquarie Infrastructure Corp. | 3,887 | 321,183 | |||||||
Electric — 9.3% | |||||||||
Brookfield Infrastructure Partners LP | 9,630 | 429,787 | |||||||
CPFL Energia SA (Brazil)(a)(b) | 49,422 | 605,419 | |||||||
Huaneng Power International, Inc. (China)(a)(b) | 7,373 | 389,147 | |||||||
Total Electric | 1,424,353 | ||||||||
Engineering & Construction — 1.9% | |||||||||
Grupo Aeroportuario del Pacifico SAB de CV (Mexico)(b) | 4,156 | 284,644 | |||||||
Internet — 2.9% | |||||||||
SouFun Holdings Ltd. (China)(a)(b) | 52,197 | 438,977 | |||||||
Investment Companies — 2.6% | |||||||||
Prospect Capital Corp. | 53,610 | 395,106 | |||||||
Iron/Steel — 3.3% | |||||||||
Vale SA (Brazil)(a)(b) | 84,486 | 497,623 | |||||||
Lodging — 2.2% | |||||||||
Las Vegas Sands Corp. | 6,328 | 332,663 | |||||||
Oil & Gas — 11.9% | |||||||||
CNOOC Ltd. (China)(b) | 2,823 | 400,640 | |||||||
Ecopetrol SA (Colombia)(a)(b) | 46,096 | 611,233 | |||||||
LinnCo LLC | 37,237 | 351,890 | |||||||
Sasol Ltd. (South Africa)(b) | 12,269 | 454,689 | |||||||
Total Oil & Gas | 1,818,452 | ||||||||
Pipelines — 12.8% | |||||||||
Energy Transfer Partners LP | 8,633 | 450,642 | |||||||
Kinder Morgan, Inc. | 7,668 | 294,375 | |||||||
MarkWest Energy Partners LP | 6,071 | 342,283 | |||||||
NGL Energy Partners LP(a) | 8,415 | 255,227 | |||||||
ONEOK Partners LP | 7,254 | 246,636 | |||||||
ONEOK, Inc. | 9,400 | 371,112 | |||||||
Total Pipelines | 1,960,275 |
![]() | ![]() | ![]() | |||||||
Investments | Shares/ Principal | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Private Equity — 6.8% | |||||||||
Apollo Global Management LLC, Class A | 13,533 | $ | 299,756 | ||||||
Carlyle Group LP (The) | 16,543 | 465,686 | |||||||
KKR & Co. LP | 11,911 | 272,166 | |||||||
Total Private Equity | 1,037,608 | ||||||||
Real Estate Investment Trusts — 11.9% | |||||||||
Communications Sales & Leasing, Inc. | 11,043 | 272,983 | |||||||
Digital Realty Trust, Inc. | 5,021 | 334,800 | |||||||
Geo Group, Inc. (The) | 12,070 | 412,311 | |||||||
Lamar Advertising Co., Class A | 5,153 | 296,194 | |||||||
Senior Housing Properties Trust | 28,376 | 498,000 | |||||||
Total Real Estate Investment Trusts | 1,814,288 | ||||||||
Telecommunications — 14.5% | |||||||||
AT&T, Inc. | 9,852 | 349,943 | |||||||
CenturyLink, Inc. | 13,162 | 386,700 | |||||||
Frontier Communications Corp.(a) | 53,062 | 262,657 | |||||||
Telecom Argentina SA (Argentina)(b) | 28,583 | 514,207 | |||||||
Verizon Communications, Inc. | 6,077 | 283,249 | |||||||
Windstream Holdings, Inc. | 64,556 | 411,867 | |||||||
Total Telecommunications | 2,208,623 | ||||||||
Toys/Games/Hobbies — 2.4% | |||||||||
Mattel, Inc. | 14,461 | 371,503 | |||||||
Transportation — 2.0% | |||||||||
Golar LNG Ltd. (Bermuda) | 6,573 | 307,616 | |||||||
Water — 2.3% | |||||||||
Cia de Saneamento Basico do Estado de Sao Paulo (Brazil)(b) | 68,265 | 353,613 | |||||||
Total Common Stocks (Cost $16,162,136) | 15,154,349 | ||||||||
MONEY MARKET FUND — 0.5% | |||||||||
Goldman Sachs Financial Square Fund, 0.11%(c) (Cost $80,184) | 80,184 | 80,184 | |||||||
REPURCHASE AGREEMENTS — 13.1%(d) | |||||||||
Citibank NA, dated 06/30/15, due 07/01/15, 0.14%, total to be received $300,081, (collateralized by various U.S. Government Agency Obligations, 0.63% – 6.50%, 11/15/16 – 07/01/45, totaling $306,082) | $ | 300,080 | 300,080 |
See accompanying Notes to Financial Statements.
54
ADVISORSHARES ATHENA HIGH DIVIDEND ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
REPURCHASE AGREEMENTS (continued) | ||||||||
HSBC Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.10%, total to be received $465,625, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.38%, 07/15/15 – 01/15/37, totaling $474,938) | $ | 465,624 | $ | 465,624 | ||||
Mizuho Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.14%, total to be received $465,626, (collateralized by various U.S. Government Agency Obligations, 0.00% – 8.50%, 06/13/16 – 04/20/44, totaling $474,937) | 465,624 | 465,624 | ||||||
Morgan Stanley & Co. LLC, dated 06/30/15, due 07/01/15, 0.09%, total to be received $465,625, (collateralized by various U.S. Government Agency Obligations, 0.75% – 9.50%, 02/16/16 – 05/01/45, totaling $474,936) | 465,624 | 465,624 | ||||||
RBC Capital Markets LLC, dated 06/30/15, due 07/01/15, 0.10%, total to be received $303,579, (collateralized by various U.S. Government Agency Obligations, 2.38% – 6.50%, 03/01/19 – 02/20/65, totaling $309,650) | 303,578 | 303,578 | ||||||
Total Repurchase Agreements (Cost $2,000,530) | 2,000,530 | |||||||
Total Investments — 112.9% (Cost $18,242,850) | 17,235,063 | |||||||
Liabilities in Excess of Other Assets — (12.9)% | (1,970,311 | ) | ||||||
Net Assets — 100.0% | $ | 15,264,752 |
LP — Limited Partnership
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $1,960,360; the aggregate market value of the collateral held by the fund is $2,035,998. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $35,468. |
(b) | American Depositary Receipt. |
(c) | Rate shown reflects the 7-day yield as of June 30, 2015. |
(d) | Collateral received from brokers for securities lending was invested in these short-term investments. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Agriculture | 2.0 | % | ||
Banks | 2.7 | |||
Chemicals | 5.7 | |||
Commercial Services | 2.1 | |||
Electric | 9.3 | |||
Engineering & Construction | 1.9 | |||
Internet | 2.9 | |||
Investment Companies | 2.6 | |||
Iron/Steel | 3.3 | |||
Lodging | 2.2 | |||
Oil & Gas | 11.9 | |||
Pipelines | 12.8 | |||
Private Equity | 6.8 | |||
Real Estate Investment Trusts | 11.9 | |||
Telecommunications | 14.5 | |||
Toys/Games/Hobbies | 2.4 | |||
Transportation | 2.0 | |||
Water | 2.3 | |||
Money Market Fund | 0.5 | |||
Repurchase Agreements | 13.1 | |||
Total Investments | 112.9 | |||
Liabilities in Excess of Other Assets | (12.9 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
55
ADVISORSHARES EQUITYPRO ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares/ Principal | Value | |||||||
EXCHANGE TRADED FUNDS — 97.6% | |||||||||
Equity Fund — 97.6% | |||||||||
Alerian MLP ETF(a) | 47,274 | $ | 735,583 | ||||||
Energy Select Sector SPDR Fund | 10,015 | 752,727 | |||||||
Guggenheim S&P 500 Equal Weight Consumer Staples ETF(a) | 21,774 | 2,303,471 | |||||||
Guggenheim S&P 500 Pure Growth ETF(a) | 42,586 | 3,456,706 | |||||||
Health Care Select Sector SPDR Fund | 13,222 | 983,585 | |||||||
Industrial Select Sector SPDR Fund(a) | 27,986 | 1,512,923 | |||||||
iShares MSCI EAFE ETF | 23,405 | 1,485,983 | |||||||
PowerShares Dynamic Pharmaceuticals Portfolio(a) | 20,495 | 1,605,578 | |||||||
SPDR S&P World ex-US ETF | 34,414 | 967,722 | |||||||
Technology Select Sector SPDR Fund | 86,999 | 3,601,759 | |||||||
Vanguard Total International Stock ETF | 26,002 | 1,308,681 | |||||||
Total Exchange Traded Funds (Cost $19,335,273) | 18,714,718 | ||||||||
MONEY MARKET FUND — 2.4% | |||||||||
Wells Fargo Advantage Government Money Market Fund — Institutional Class, 0.01%(b) (Cost $464,567) | 464,567 | 464,567 | |||||||
REPURCHASE AGREEMENTS — 12.3%(c) | |||||||||
Citibank NA, dated 06/30/15, due 07/01/15, 0.14%, total to be received $353,684, (collateralized by various U.S. Government Agency Obligations, 0.63% – 6.50%, 11/15/16 – 07/01/45, totaling $360,757) | $ | 353,683 | 353,683 | ||||||
HSBC Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.10%, total to be received $548,800, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.38%, 07/15/15 – 01/15/37, totaling $559,776) | 548,798 | 548,798 | |||||||
Mizuho Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.14%, total to be received $548,800, (collateralized by various U.S. Government Agency Obligations, 0.00% – 8.50%, 06/13/16 – 04/20/44, totaling $559,774) | 548,798 | 548,798 |
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
REPURCHASE AGREEMENTS (continued) | ||||||||
Morgan Stanley & Co. LLC, dated 06/30/15, due 07/01/15, 0.09%, total to be received $548,799, (collateralized by various U.S. Government Agency Obligations, 0.75% – 9.50%, 02/16/16 – 05/01/45, totaling $559,774) | $ | 548,798 | $ | 548,798 | ||||
RBC Capital Markets LLC, dated 06/30/15, due 07/01/15, 0.10%, total to be received $357,803, (collateralized by various U.S. Government Agency Obligations, 2.38% – 6.50%, 03/01/19 – 02/20/65, totaling $364,958) | 357,802 | 357,802 | ||||||
Total Repurchase Agreements (Cost $2,357,879) | 2,357,879 | |||||||
Total Investments — 112.3% (Cost $22,157,719) | 21,537,164 | |||||||
Liabilities in Excess of Other Assets — (12.3)% | (2,358,229 | ) | ||||||
Net Assets — 100.0% | $ | 19,178,935 |
ETF — Exchange Traded Fund
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $2,305,926; the aggregate market value of the collateral held by the fund is $2,357,879. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2015. |
(c) | Collateral received from brokers for securities lending was invested in these short-term investments. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Equity Fund | 97.6 | % | ||
Money Market Fund | 2.4 | |||
Repurchase Agreements | 12.3 | |||
Total Investments | 112.3 | |||
Liabilities in Excess of Other Assets | (12.3 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
56
ADVISORSHARES GARTMAN GOLD/EURO ETF
Schedule of Investments (Consolidated)†
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
MONEY MARKET FUND — 65.8% | |||||||||
BNY Mellon Cash Reserve, 0.01% (Cost $11,026,789) | 11,026,789 | $ | 11,026,789 | ||||||
Total Investments — 65.8% (Cost $11,026,789) | 11,026,789 | ||||||||
Other Assets in Excess of Liabilities — 34.2% | 5,731,066 | ||||||||
Net Assets — 100.0% | $ | 16,757,855 |
Futures contracts outstanding as of June 30, 2015:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Type | Broker | Expiration Date | Number of Contracts | Value at Trade Date | Value at June 30, 2015 | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
EURO Currency | Interactive Brokers LLC | September 2015 | (124 | ) | $ | (17,559,557 | ) | $ | (17,291,800 | ) | $ | 267,757 | ||||||||||||
Gold 100 Oz. | Interactive Brokers LLC | August 2015 | 149 | 17,714,954 | 17,459,820 | (255,134 | ) | |||||||||||||||||
$ | 12,623 |
Cash posted as collateral to broker for futures contracts was $5,757,933 at June 30, 2015.
† | 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. |
See accompanying Notes to Financial Statements.
57
ADVISORSHARES GARTMAN GOLD/YEN ETF
Schedule of Investments (Consolidated)†
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
MONEY MARKET FUND — 67.2% | |||||||||
BNY Mellon Cash Reserve, 0.01% (Cost $15,460,955) | 15,460,955 | $ | 15,460,955 | ||||||
Total Investments — 67.2% (Cost $15,460,955) | 15,460,955 | ||||||||
Other Assets in Excess of Liabilities — 32.8% | 7,560,698 | ||||||||
Net Assets — 100.0% | $ | 23,021,653 |
Futures contracts outstanding as of June 30, 2015:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Type | Broker | Expiration Date | Number of Contracts | Value at Trade Date | Value at June 30, 2015 | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
Gold 100 Oz. | Interactive Brokers LLC | August 2015 | 206 | $ | 24,480,016 | $ | 24,139,080 | $ | (340,936 | ) | ||||||||||||||
Japanese Yen Currency | Interactive Brokers LLC | September 2015 | (237 | ) | (24,173,417 | ) | (24,240,656 | ) | (67,239 | ) | ||||||||||||||
$ | (408,175 | ) |
Cash posted as collateral from broker for futures contracts was $7,591,526 at June 30, 2015.
† | 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. |
See accompanying Notes to Financial Statements.
58
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS — 67.0% | |||||||||
Apparel — 1.7% | |||||||||
Hanesbrands, Inc. | 900 | $ | 29,988 | ||||||
NIKE, Inc., Class B | 260 | 28,085 | |||||||
VF Corp. | 1,081 | 75,389 | |||||||
Total Apparel | 133,462 | ||||||||
Auto Parts & Equipment — 1.2% | |||||||||
Johnson Controls, Inc. | 1,923 | 95,246 | |||||||
Total Auto Parts & Equipment | 95,246 | ||||||||
Banks — 2.7% | |||||||||
Northern Trust Corp. | 1,224 | 93,587 | |||||||
PNC Financial Services Group, Inc. (The) | 949 | 90,772 | |||||||
Tompkins Financial Corp. | 499 | 26,806 | |||||||
Total Banks | 211,165 | ||||||||
Beverages — 0.6% | |||||||||
Reed's, Inc.*(a) | 7,660 | 47,722 | |||||||
Biotechnology — 2.7% | |||||||||
Amgen, Inc. | 331 | 50,815 | |||||||
Illumina, Inc.* | 603 | 131,671 | |||||||
Isis Pharmaceuticals, Inc.*(a) | 581 | 33,437 | |||||||
Total Biotechnology | 215,923 | ||||||||
Building Materials — 0.9% | |||||||||
Geberit AG (Switzerland)(b) | 546 | 18,286 | |||||||
Masco Corp. | 1,988 | 53,020 | |||||||
Total Building Materials | 71,306 | ||||||||
Chemicals — 3.2% | |||||||||
Air Products & Chemicals, Inc. | 265 | 36,260 | |||||||
Minerals Technologies, Inc. | 930 | 63,361 | |||||||
Novozymes A/S (Denmark)(b) | 3,128 | 148,549 | |||||||
Total Chemicals | 248,170 | ||||||||
Commercial Services — 2.8% | |||||||||
Automatic Data Processing, Inc. | 870 | 69,800 | |||||||
Korn/Ferry International | 775 | 26,947 | |||||||
MasterCard, Inc., Class A | 890 | 83,197 | |||||||
Where Food Comes From, Inc.* | 15,971 | 42,004 | |||||||
Total Commercial Services | 221,948 | ||||||||
Computers — 3.0% | |||||||||
Apple, Inc. | 920 | 115,391 | |||||||
EMC Corp. | 2,793 | 73,707 | |||||||
Hewlett-Packard Co. | 663 | 19,897 | |||||||
Stratasys Ltd. (Israel)*(a) | 848 | 29,621 | |||||||
Total Computers | 238,616 | ||||||||
Cosmetics/Personal Care — 1.4% | |||||||||
Estee Lauder Cos., Inc. (The), Class A | 480 | 41,597 | |||||||
Procter & Gamble Co. (The) | 870 | 68,069 | |||||||
Total Cosmetics/Personal Care | 109,666 |
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Diversified Financial Services — 3.1% | |||||||||
Ameriprise Financial, Inc. | 694 | $ | 86,701 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 1,653 | 33,143 | |||||||
MarketAxess Holdings, Inc. | 312 | 28,944 | |||||||
Stifel Financial Corp.* | 1,580 | 91,230 | |||||||
Total Diversified Financial Services | 240,018 | ||||||||
Electronics — 0.8% | |||||||||
Rogers Corp.* | 293 | 19,379 | |||||||
Waters Corp.* | 326 | 41,852 | |||||||
Total Electronics | 61,231 | ||||||||
Energy — Alternate Sources — 0.5% | |||||||||
Enphase Energy, Inc.*(a) | 5,300 | 40,333 | |||||||
Environmental Control — 1.4% | |||||||||
Tomra Systems ASA (Norway)(b) | 11,638 | 107,302 | |||||||
Total Environmental Control | 107,302 | ||||||||
Food — 4.2% | |||||||||
Boulder Brands, Inc.* | 3,040 | 21,098 | |||||||
Kroger Co. (The) | 1,038 | 75,265 | |||||||
Nestle SA (Switzerland)(b) | 576 | 41,564 | |||||||
Sprouts Farmers Market, Inc.* | 2,001 | 53,987 | |||||||
SunOpta, Inc.* | 5,918 | 63,500 | |||||||
Unilever PLC (United Kingdom)(b) | 950 | 40,812 | |||||||
WhiteWave Foods Co. (The)* | 628 | 30,697 | |||||||
Total Food | 326,923 | ||||||||
Healthcare — Products — 2.9% | |||||||||
Becton, Dickinson and Co. | 274 | 38,812 | |||||||
Boston Scientific Corp.* | 4,064 | 71,933 | |||||||
Hologic, Inc.* | 2,224 | 84,645 | |||||||
Sirona Dental Systems, Inc.* | 325 | 32,637 | |||||||
Total Healthcare — Products | 228,027 | ||||||||
Healthcare — Services — 0.3% | |||||||||
Amedisys, Inc.* | 504 | 20,024 | |||||||
Home Furnishings — 0.7% | |||||||||
Dorel Industries, Inc., Class B (Canada) | 2,013 | 54,217 | |||||||
Household Products/Wares — 0.7% | |||||||||
Church & Dwight Co., Inc. | 651 | 52,816 | |||||||
Insurance — 0.7% | |||||||||
Voya Financial, Inc. | 1,220 | 56,693 | |||||||
Internet — 2.0% | |||||||||
F5 Networks, Inc.* | 446 | 53,676 | |||||||
FireEye, Inc.*(a) | 900 | 44,019 | |||||||
Google, Inc., Class A* | 105 | 56,704 | |||||||
Total Internet | 154,399 | ||||||||
Lodging — 0.3% | |||||||||
Interval Leisure Group, Inc. | 1,090 | 24,907 |
See accompanying Notes to Financial Statements.
59
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Machinery — Diversified — 2.2% | |||||||||
Rockwell Automation, Inc. | 574 | $ | 71,543 | ||||||
Wabtec Corp. | 278 | 26,199 | |||||||
Xylem, Inc. | 2,031 | 75,289 | |||||||
Total Machinery — Diversified | 173,031 | ||||||||
Miscellaneous Manufacturing — 3.5% | |||||||||
3M Co. | 155 | 23,917 | |||||||
AO Smith Corp. | 400 | 28,792 | |||||||
AptarGroup, Inc. | 1,248 | 79,585 | |||||||
CLARCOR, Inc. | 400 | 24,896 | |||||||
Illinois Tool Works, Inc. | 272 | 24,967 | |||||||
Ingersoll-Rand PLC (Ireland) | 770 | 51,913 | |||||||
Raven Industries, Inc. | 2,069 | 42,063 | |||||||
Total Miscellaneous Manufacturing | 276,133 | ||||||||
Packaging & Containers — 0.7% | |||||||||
Sealed Air Corp. | 1,070 | 54,977 | |||||||
Pharmaceuticals — 4.7% | |||||||||
Cardinal Health, Inc. | 795 | 66,502 | |||||||
Johnson & Johnson | 565 | 55,065 | |||||||
Novartis AG (Switzerland)(b) | 930 | 91,455 | |||||||
Perrigo Co. PLC (Ireland) | 419 | 77,444 | |||||||
Teva Pharmaceutical Industries Ltd. (Israel)(b) | 1,328 | 78,484 | |||||||
Total Pharmaceuticals | 368,950 | ||||||||
Real Estate — 2.0% | |||||||||
CBRE Group, Inc., Class A* | 1,878 | 69,486 | |||||||
Jones Lang LaSalle, Inc. | 534 | 91,314 | |||||||
Total Real Estate | 160,800 | ||||||||
Retail — 5.1% | |||||||||
Chipotle Mexican Grill, Inc.* | 78 | 47,189 | |||||||
Costco Wholesale Corp. | 480 | 64,829 | |||||||
CVS Health Corp. | 1,039 | 108,969 | |||||||
Kingfisher PLC (United Kingdom)(b) | 3,750 | 40,950 | |||||||
Starbucks Corp. | 1,100 | 58,977 | |||||||
Target Corp. | 1,065 | 86,936 | |||||||
Total Retail | 407,850 | ||||||||
Semiconductors — 4.3% | |||||||||
Broadcom Corp., Class A | 744 | 38,309 | |||||||
Intel Corp. | 693 | 21,078 | |||||||
IPG Photonics Corp.*(a) | 776 | 66,096 | |||||||
NXP Semiconductors NV (Netherlands)* | 726 | 71,292 | |||||||
QUALCOMM, Inc. | 1,111 | 69,582 | |||||||
Xilinx, Inc. | 1,544 | 68,183 | |||||||
Total Semiconductors | 334,540 |
![]() | ![]() | ![]() | |||||||
Investments | Shares/ Principal | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Software — 2.6% | |||||||||
Adobe Systems, Inc.* | 993 | $ | 80,443 | ||||||
Fiserv, Inc.* | 1,198 | 99,230 | |||||||
Microsoft Corp. | 534 | 23,576 | |||||||
Total Software | 203,249 | ||||||||
Telecommunications — 2.0% | |||||||||
Cisco Systems, Inc. | 900 | 24,714 | |||||||
LogMeIn, Inc.* | 506 | 32,632 | |||||||
Sierra Wireless, Inc. (Canada)*(a) | 2,824 | 70,204 | |||||||
Telenor ASA (Norway)(b) | 436 | 28,604 | |||||||
Total Telecommunications | 156,154 | ||||||||
Transportation — 1.1% | |||||||||
Canadian National Railway Co. (Canada) | 684 | 39,501 | |||||||
CSX Corp. | 660 | 21,549 | |||||||
FedEx Corp. | 141 | 24,026 | |||||||
Total Transportation | 85,076 | ||||||||
Water — 1.0% | |||||||||
American States Water Co. | 1,020 | 38,137 | |||||||
American Water Works Co., Inc. | 255 | 12,401 | |||||||
Severn Trent PLC (United Kingdom)(a)(b) | 970 | 31,742 | |||||||
Total Water | 82,280 | ||||||||
Total Common Stocks (Cost $4,775,907) | 5,263,154 | ||||||||
ASSET BACKED SECURITIES — 14.9% | |||||||||
SBA, 4.08%, 07/25/38@ | $ | 127,652 | 148,113 | ||||||
SBA, 4.15%, 02/25/39@ | 171,679 | 198,564 | |||||||
SBAP, Class 1, Series 2009-20H, 4.45%, 08/01/29 | 180,027 | 196,752 | |||||||
SBAP, Class 1, Series 2010-20A, 4.38%, 01/01/30 | 141,428 | 154,274 | |||||||
SBAP, Class 1, Series 2010-20B, 4.14%, 02/01/30 | 273,792 | 297,817 | |||||||
U.S. SBA, Class 1, Series 2010-10A, 4.11%, 03/10/20 | 166,591 | 174,859 | |||||||
Total Asset Backed Securities (Cost $1,169,020) | 1,170,379 | ||||||||
MUNICIPAL BOND — 3.8% | |||||||||
Allegheny County Residential Finance Authority, 0.16%, 11/01/35@ (Cost $300,000) | 300,000 | 300,000 |
See accompanying Notes to Financial Statements.
60
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares/ Principal | Value | |||||||
U.S. GOVERNMENT AGENCY SECURITIES — 10.1% | |||||||||
Federal National Mortgage Association, 3.76%, 05/01/43 | 339,677 | $ | 348,845 | ||||||
Government National Mortgage Association, Class AC, Series 2011-109, 3.25%, 04/16/43 | 250,000 | 256,726 | |||||||
Government National Mortgage Association, Class AE, Series 2015-41, 2.90%, 09/16/56 | 189,637 | 191,699 | |||||||
Total U.S. Government Agency Securities (Cost $819,493) | 797,270 | ||||||||
MONEY MARKET FUNDS — 4.1% | |||||||||
Fidelity Institutional Money Market Government Portfolio — Class I, 0.01%(c) | 185,920 | 185,920 | |||||||
Fidelity Institutional Money Market Portfolio — Institutional Class, 0.01%(c) | 138,772 | 138,772 | |||||||
Total Money Market Funds (Cost $324,692) | 324,692 | ||||||||
REPURCHASE AGREEMENT — 2.3%(d) | |||||||||
RBC Capital Markets LLC, dated 06/30/15, due 07/01/15, 0.10%, total to be received $179,837, (collateralized by various U.S. Government Agency Obligations, 2.38% – 6.50%, 03/01/19 – 02/20/65, totaling $183,433) (Cost $179,836) | $ | 179,836 | 179,836 | ||||||
Total Investments — 102.2% (Cost $7,568,948) | 8,035,331 | ||||||||
Liabilities in Excess of Other Assets — (2.2)% | (176,459 | ) | |||||||
Net Assets — 100.0% | $ | 7,858,872 |
PLC — Public Limited Company
* | Non-income producing security. |
@ | Variable rate instrument. The interest rate shown reflects the rate in effect at June 30, 2015. |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $280,465; the aggregate market value of the collateral held by the fund is $287,035. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $107,199. |
(b) | American Depositary Receipt. |
(c) | Rate shown reflects the 7-day yield as of June 30, 2015. |
(d) | Collateral received from broker for securities lending was invested in this short-term investment. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Apparel | 1.7 | % | ||
Asset Backed Securities | 14.9 | |||
Auto Parts & Equipment | 1.2 | |||
Banks | 2.7 | |||
Beverages | 0.6 | |||
Biotechnology | 2.7 | |||
Building Materials | 0.9 | |||
Chemicals | 3.2 | |||
Commercial Services | 2.8 | |||
Computers | 3.0 | |||
Cosmetics/Personal Care | 1.4 | |||
Diversified Financial Services | 3.1 | |||
Electronics | 0.8 | |||
Energy – Alternate Sources | 0.5 | |||
Environmental Control | 1.4 | |||
Food | 4.2 | |||
Healthcare – Products | 2.9 | |||
Healthcare – Services | 0.3 | |||
Home Furnishings | 0.7 | |||
Household Products/Wares | 0.7 | |||
Insurance | 0.7 | |||
Internet | 2.0 | |||
Lodging | 0.3 | |||
Machinery – Diversified | 2.2 | |||
Miscellaneous Manufacturing | 3.5 | |||
Municipal | 3.8 | |||
Packaging & Containers | 0.7 | |||
Pharmaceuticals | 4.7 | |||
Real Estate | 2.0 | |||
Retail | 5.1 | |||
Semiconductors | 4.3 | |||
Software | 2.6 | |||
Telecommunications | 2.0 | |||
Transportation | 1.1 | |||
U.S. Government Agency Securities | 10.1 | |||
Water | 1.0 | |||
Money Market Fund | 4.1 | |||
Repurchase Agreements | 2.3 | |||
Total Investments | 102.2 | |||
Liabilities in Excess of Other Assets | (2.2 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
61
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS — 99.0% | |||||||||
Advertising — 0.4% | |||||||||
Interpublic Group of Cos., Inc. (The) | 4,397 | $ | 84,730 | ||||||
Omnicom Group, Inc. | 432 | 30,020 | |||||||
Total Advertising | 114,750 | ||||||||
Aerospace/Defense — 1.1% | |||||||||
Boeing Co. (The) | 458 | 63,534 | |||||||
General Dynamics Corp. | 312 | 44,207 | |||||||
Harris Corp. | 80 | 6,153 | |||||||
L-3 Communications Holdings, Inc. | 88 | 9,977 | |||||||
Lockheed Martin Corp. | 353 | 65,623 | |||||||
Northrop Grumman Corp. | 226 | 35,850 | |||||||
Raytheon Co. | 389 | 37,220 | |||||||
Rockwell Collins, Inc. | 452 | 41,742 | |||||||
United Technologies Corp. | 438 | 48,587 | |||||||
Total Aerospace/Defense | 352,893 | ||||||||
Agriculture — 0.7% | |||||||||
Altria Group, Inc. | 734 | 35,900 | |||||||
Archer-Daniels-Midland Co. | 2,141 | 103,240 | |||||||
Philip Morris International, Inc. | 173 | 13,869 | |||||||
Reynolds American, Inc. | 743 | 55,472 | |||||||
Total Agriculture | 208,481 | ||||||||
Airlines — 1.6% | |||||||||
American Airlines Group, Inc. | 4,050 | 161,737 | |||||||
Delta Air Lines, Inc. | 4,320 | 177,466 | |||||||
Southwest Airlines Co. | 4,636 | 153,405 | |||||||
Total Airlines | 492,608 | ||||||||
Apparel — 1.3% | |||||||||
Hanesbrands, Inc. | 2,716 | 90,497 | |||||||
Michael Kors Holdings Ltd.* | 3,068 | 129,132 | |||||||
NIKE, Inc., Class B | 399 | 43,100 | |||||||
Ralph Lauren Corp. | 434 | 57,444 | |||||||
Under Armour, Inc., Class A*(a) | 332 | 27,702 | |||||||
VF Corp. | 708 | 49,376 | |||||||
Total Apparel | 397,251 | ||||||||
Auto Manufacturers — 1.5% | |||||||||
Ford Motor Co. | 12,453 | 186,919 | |||||||
General Motors Co. | 5,575 | 185,815 | |||||||
PACCAR, Inc. | 1,539 | 98,204 | |||||||
Total Auto Manufacturers | 470,938 | ||||||||
Auto Parts & Equipment — 1.3% | |||||||||
BorgWarner, Inc. | 1,880 | 106,859 | |||||||
Delphi Automotive PLC (United Kingdom) | 1,853 | 157,672 | |||||||
Johnson Controls, Inc. | 2,971 | 147,154 | |||||||
Total Auto Parts & Equipment | 411,685 |
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Banks — 5.1% | |||||||||
Bank of America Corp. | 5,727 | $ | 97,474 | ||||||
Bank of New York Mellon Corp. (The) | 4,003 | 168,006 | |||||||
BB&T Corp. | 1,972 | 79,491 | |||||||
Capital One Financial Corp. | 742 | 65,274 | |||||||
Citigroup, Inc. | 3,564 | 196,875 | |||||||
Comerica, Inc. | 717 | 36,796 | |||||||
Fifth Third Bancorp | 1,658 | 34,520 | |||||||
Goldman Sachs Group, Inc. (The) | 346 | 72,241 | |||||||
Huntington Bancshares, Inc. | 4,385 | 49,594 | |||||||
JPMorgan Chase & Co. | 689 | 46,687 | |||||||
KeyCorp | 2,359 | 35,432 | |||||||
M&T Bank Corp. | 998 | 124,680 | |||||||
Morgan Stanley | 5,001 | 193,989 | |||||||
Northern Trust Corp. | 724 | 55,357 | |||||||
PNC Financial Services Group, Inc. (The) | 380 | 36,347 | |||||||
Regions Financial Corp. | 3,635 | 37,659 | |||||||
State Street Corp. | 565 | 43,505 | |||||||
SunTrust Banks, Inc. | 3,797 | 163,347 | |||||||
US Bancorp | 776 | 33,678 | |||||||
Wells Fargo & Co. | 782 | 43,980 | |||||||
Total Banks | 1,614,932 | ||||||||
Beverages — 0.7% | |||||||||
Brown-Forman Corp., Class B | 175 | 17,532 | |||||||
Coca-Cola Co. (The) | 357 | 14,005 | |||||||
Coca-Cola Enterprises, Inc. | 272 | 11,816 | |||||||
Constellation Brands, Inc., Class A | 333 | 38,635 | |||||||
Dr Pepper Snapple Group, Inc. | 421 | 30,691 | |||||||
Keurig Green Mountain, Inc. | 718 | 55,019 | |||||||
Molson Coors Brewing Co., Class B | 114 | 7,958 | |||||||
Monster Beverage Corp.* | 270 | 36,185 | |||||||
PepsiCo, Inc. | 181 | 16,895 | |||||||
Total Beverages | 228,736 | ||||||||
Biotechnology — 2.3% | |||||||||
Alexion Pharmaceuticals, Inc.* | 659 | 119,127 | |||||||
Amgen, Inc. | 379 | 58,184 | |||||||
Biogen, Inc.* | 286 | 115,527 | |||||||
Celgene Corp.* | 1,608 | 186,102 | |||||||
Gilead Sciences, Inc. | 1,843 | 215,779 | |||||||
Regeneron Pharmaceuticals, Inc.* | 80 | 40,810 | |||||||
Total Biotechnology | 735,529 |
See accompanying Notes to Financial Statements.
62
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Building Materials — 0.7% | |||||||||
Martin Marietta Materials, Inc. | 645 | $ | 91,275 | ||||||
Masco Corp. | 2,999 | 79,983 | |||||||
Vulcan Materials Co. | 438 | 36,761 | |||||||
Total Building Materials | 208,019 | ||||||||
Chemicals — 3.5% | |||||||||
Air Products & Chemicals, Inc. | 515 | 70,467 | |||||||
Airgas, Inc. | 390 | 41,254 | |||||||
CF Industries Holdings, Inc. | 3,080 | 197,983 | |||||||
Dow Chemical Co. (The) | 654 | 33,465 | |||||||
E.I. du Pont de Nemours & Co. | 472 | 30,184 | |||||||
Eastman Chemical Co. | 1,643 | 134,430 | |||||||
Ecolab, Inc. | 487 | 55,065 | |||||||
FMC Corp. | 751 | 39,465 | |||||||
International Flavors & Fragrances, Inc. | 296 | 32,350 | |||||||
LyondellBasell Industries NV, Class A | 345 | 35,714 | |||||||
Monsanto Co. | 661 | 70,456 | |||||||
Mosaic Co. (The) | 4,072 | 190,774 | |||||||
PPG Industries, Inc. | 340 | 39,005 | |||||||
Praxair, Inc. | 358 | 42,799 | |||||||
Sherwin-Williams Co. (The) | 261 | 71,780 | |||||||
Sigma-Aldrich Corp. | 93 | 12,960 | |||||||
Total Chemicals | 1,098,151 | ||||||||
Coal — 0.0%** | |||||||||
CONSOL Energy, Inc.(a) | 628 | 13,653 | |||||||
Commercial Services — 3.1% | |||||||||
ADT Corp. (The)(a) | 707 | 23,734 | |||||||
Automatic Data Processing, Inc. | 353 | 28,321 | |||||||
Cintas Corp. | 514 | 43,479 | |||||||
Equifax, Inc. | 400 | 38,836 | |||||||
H&R Block, Inc. | 2,645 | 78,424 | |||||||
MasterCard, Inc., Class A | 978 | 91,423 | |||||||
McGraw Hill Financial, Inc. | 663 | 66,598 | |||||||
Moody’s Corp. | 414 | 44,695 | |||||||
Quanta Services, Inc.* | 4,749 | 136,867 | |||||||
Robert Half International, Inc. | 2,333 | 129,482 | |||||||
Total System Services, Inc. | 1,390 | 58,060 | |||||||
United Rentals, Inc.* | 1,845 | 161,660 | |||||||
Western Union Co. (The) | 3,236 | 65,788 | |||||||
Total Commercial Services | 967,367 | ||||||||
Computers — 3.6% | |||||||||
Accenture PLC, Class A (Ireland) | 398 | 38,518 | |||||||
Apple, Inc. | 1,306 | 163,806 | |||||||
Cognizant Technology Solutions Corp., Class A* | 2,114 | 129,144 | |||||||
Computer Sciences Corp. | 952 | 62,489 | |||||||
EMC Corp. | 4,564 | 120,444 |
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Computers (continued) | |||||||||
Hewlett-Packard Co. | 1,016 | $ | 30,490 | ||||||
International Business Machines Corp. | 882 | 143,466 | |||||||
NetApp, Inc. | 4,273 | 134,856 | |||||||
SanDisk Corp. | 2,285 | 133,033 | |||||||
Seagate Technology PLC (Ireland) | 1,344 | 63,840 | |||||||
Teradata Corp.*(a) | 1,048 | 38,776 | |||||||
Western Digital Corp. | 871 | 68,304 | |||||||
Total Computers | 1,127,166 | ||||||||
Cosmetics/Personal Care — 0.2% | |||||||||
Colgate-Palmolive Co. | 289 | 18,903 | |||||||
Estee Lauder Cos., Inc. (The), Class A | 327 | 28,338 | |||||||
Procter & Gamble Co. (The) | 250 | 19,560 | |||||||
Total Cosmetics/Personal Care | 66,801 | ||||||||
Distribution/Wholesale — 0.9% | |||||||||
Fastenal Co. | 2,042 | 86,132 | |||||||
Fossil Group, Inc.*(a) | 1,684 | 116,802 | |||||||
Genuine Parts Co. | 413 | 36,976 | |||||||
W.W. Grainger, Inc. | 199 | 47,093 | |||||||
Total Distribution/Wholesale | 287,003 | ||||||||
Diversified Financial Services — 6.0% | |||||||||
Affiliated Managers Group, Inc.* | 707 | 154,550 | |||||||
Alliance Data Systems Corp.* | 436 | 127,286 | |||||||
American Express Co. | 1,883 | 146,347 | |||||||
Ameriprise Financial, Inc. | 1,464 | 182,897 | |||||||
BlackRock, Inc. | 264 | 91,339 | |||||||
Charles Schwab Corp. (The) | 3,268 | 106,700 | |||||||
CME Group, Inc. | 442 | 41,133 | |||||||
Discover Financial Services | 1,630 | 93,921 | |||||||
E*TRADE Financial Corp.* | 5,057 | 151,457 | |||||||
Franklin Resources, Inc. | 1,990 | 97,570 | |||||||
Intercontinental Exchange, Inc. | 624 | 139,533 | |||||||
Invesco Ltd. | 3,015 | 113,032 | |||||||
Legg Mason, Inc. | 3,451 | 177,830 | |||||||
NASDAQ OMX Group, Inc. (The) | 1,422 | 69,408 | |||||||
T. Rowe Price Group, Inc. | 1,325 | 102,992 | |||||||
Visa, Inc., Class A | 1,382 | 92,801 | |||||||
Total Diversified Financial Services | 1,888,796 | ||||||||
Electric — 1.5% | |||||||||
AES Corp. (The) | 2,149 | 28,496 | |||||||
Ameren Corp. | 794 | 29,918 | |||||||
American Electric Power Co., Inc. | 320 | 16,950 | |||||||
CMS Energy Corp. | 860 | 27,382 | |||||||
Consolidated Edison, Inc. | 188 | 10,881 | |||||||
Dominion Resources, Inc. | 318 | 21,265 | |||||||
DTE Energy Co. | 246 | 18,361 |
See accompanying Notes to Financial Statements.
63
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Electric (continued) | |||||||||
Duke Energy Corp. | 229 | $ | 16,172 | ||||||
Edison International | 228 | 12,672 | |||||||
Eversource Energy | 569 | 25,838 | |||||||
Exelon Corp. | 456 | 14,328 | |||||||
NextEra Energy, Inc. | 251 | 24,606 | |||||||
Pepco Holdings, Inc. | 819 | 22,064 | |||||||
PG&E Corp. | 686 | 33,682 | |||||||
Pinnacle West Capital Corp. | 370 | 21,049 | |||||||
PPL Corp. | 483 | 14,234 | |||||||
Public Service Enterprise Group, Inc. | 570 | 22,390 | |||||||
SCANA Corp. | 398 | 20,159 | |||||||
Southern Co. (The) | 331 | 13,869 | |||||||
Talen Energy Corp.* | 60 | 1,030 | |||||||
TECO Energy, Inc. | 1,414 | 24,971 | |||||||
WEC Energy Group, Inc. | 564 | 25,363 | |||||||
Xcel Energy, Inc. | 614 | 19,759 | |||||||
Total Electric | 465,439 | ||||||||
Electrical Components & Equipment — 0.3% | |||||||||
AMETEK, Inc. | 1,126 | 61,682 | |||||||
Emerson Electric Co. | 685 | 37,970 | |||||||
Total Electrical Components & Equipment | 99,652 | ||||||||
Electronics — 2.4% | |||||||||
Agilent Technologies, Inc. | 984 | 37,963 | |||||||
Allegion PLC (Ireland) | 539 | 32,415 | |||||||
Amphenol Corp., Class A | 485 | 28,115 | |||||||
Corning, Inc. | 2,728 | 53,823 | |||||||
FLIR Systems, Inc. | 3,746 | 115,453 | |||||||
Garmin Ltd. (Switzerland) | 994 | 43,666 | |||||||
Honeywell International, Inc. | 717 | 73,112 | |||||||
PerkinElmer, Inc. | 833 | 43,849 | |||||||
TE Connectivity Ltd. (Switzerland) | 1,390 | 89,377 | |||||||
Thermo Fisher Scientific, Inc. | 768 | 99,656 | |||||||
Tyco International PLC | 2,374 | 91,352 | |||||||
Waters Corp.* | 278 | 35,690 | |||||||
Total Electronics | 744,471 | ||||||||
Engineering & Construction — 0.7% | |||||||||
Fluor Corp. | 2,157 | 114,343 | |||||||
Jacobs Engineering Group, Inc.* | 2,914 | 118,366 | |||||||
Total Engineering & Construction | 232,709 | ||||||||
Environmental Control — 0.3% | |||||||||
Republic Services, Inc. | 374 | 14,650 | |||||||
Stericycle, Inc.* | 317 | 42,449 | |||||||
Waste Management, Inc. | 523 | 24,241 | |||||||
Total Environmental Control | 81,340 |
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Food — 1.6% | |||||||||
Campbell Soup Co. | 233 | $ | 11,102 | ||||||
ConAgra Foods, Inc. | 963 | 42,102 | |||||||
General Mills, Inc. | 347 | 19,335 | |||||||
Hershey Co. (The) | 378 | 33,578 | |||||||
Hormel Foods Corp. | 396 | 22,323 | |||||||
JM Smucker Co. (The) | 203 | 22,007 | |||||||
Kellogg Co. | 205 | 12,854 | |||||||
Kraft Foods Group, Inc. | 165 | 14,048 | |||||||
Kroger Co. (The) | 542 | 39,300 | |||||||
McCormick & Co., Inc. | 350 | 28,333 | |||||||
Mondelez International, Inc., Class A | 888 | 36,532 | |||||||
Safeway, Inc PDC, LLC CVR. | 447 | 22 | |||||||
Safeway, Inc SCRP. | 447 | 454 | |||||||
Sysco Corp. | 860 | 31,046 | |||||||
Tyson Foods, Inc., Class A | 3,943 | 168,090 | |||||||
Whole Foods Market, Inc. | 757 | 29,856 | |||||||
Total Food | 510,982 | ||||||||
Forest Products & Paper — 0.5% | |||||||||
International Paper Co. | 3,047 | 145,007 | |||||||
Gas — 0.2% | |||||||||
AGL Resources, Inc. | 157 | 7,310 | |||||||
CenterPoint Energy, Inc. | 540 | 10,276 | |||||||
NiSource, Inc. | 540 | 24,619 | |||||||
Sempra Energy | 304 | 30,077 | |||||||
Total Gas | 72,282 | ||||||||
Hand/Machine Tools — 0.3% | |||||||||
Snap-on, Inc. | 376 | 59,878 | |||||||
Stanley Black & Decker, Inc. | 386 | 40,623 | |||||||
Total Hand/Machine Tools | 100,501 | ||||||||
Healthcare – Products — 2.1% | |||||||||
Baxter International, Inc. | 440 | 30,769 | |||||||
Becton Dickinson and Co. | 285 | 40,370 | |||||||
Boston Scientific Corp.* | 2,303 | 40,763 | |||||||
C.R. Bard, Inc. | 240 | 40,968 | |||||||
Danaher Corp. | 1,175 | 100,569 | |||||||
DENTSPLY International, Inc. | 704 | 36,291 | |||||||
Edwards Lifesciences Corp.* | 308 | 43,868 | |||||||
Henry Schein, Inc.* | 261 | 37,093 | |||||||
Intuitive Surgical, Inc.* | 72 | 34,884 | |||||||
Medtronic PLC | 453 | 33,567 | |||||||
Patterson Cos., Inc. | 875 | 42,569 | |||||||
St. Jude Medical, Inc. | 640 | 46,765 | |||||||
Stryker Corp. | 392 | 37,463 | |||||||
Varian Medical Systems, Inc.* | 408 | 34,407 | |||||||
Zimmer Biomet Holdings, Inc. | 628 | 68,597 | |||||||
Total Healthcare – Products | 668,943 |
See accompanying Notes to Financial Statements.
64
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Healthcare – Services — 3.2% | |||||||||
Aetna, Inc. | 839 | $ | 106,939 | ||||||
Anthem, Inc. | 562 | 92,247 | |||||||
Cigna Corp. | 1,027 | 166,373 | |||||||
DaVita HealthCare Partners, Inc.* | 482 | 38,305 | |||||||
HCA Holdings, Inc.* | 1,794 | 162,751 | |||||||
Humana, Inc. | 424 | 81,103 | |||||||
Laboratory Corp. of America Holdings* | 836 | 101,340 | |||||||
Quest Diagnostics, Inc. | 1,160 | 84,123 | |||||||
Tenet Healthcare Corp.* | 704 | 40,748 | |||||||
UnitedHealth Group, Inc. | 677 | 82,594 | |||||||
Universal Health Services, Inc., Class B | 378 | 53,714 | |||||||
Total Healthcare – Services | 1,010,237 | ||||||||
Home Builders — 0.8% | |||||||||
D.R. Horton, Inc. | 5,449 | 149,085 | |||||||
Lennar Corp., Class A | 1,456 | 74,314 | |||||||
PulteGroup, Inc. | 1,427 | 28,754 | |||||||
Total Home Builders | 252,153 | ||||||||
Home Furnishings — 1.2% | |||||||||
Harman International Industries, Inc. | 1,293 | 153,789 | |||||||
Leggett & Platt, Inc. | 1,039 | 50,579 | |||||||
Whirlpool Corp. | 1,033 | 178,761 | |||||||
Total Home Furnishings | 383,129 | ||||||||
Household Products/Wares — 0.3% | |||||||||
Avery Dennison Corp. | 738 | 44,974 | |||||||
Clorox Co. (The) | 158 | 16,435 | |||||||
Kimberly-Clark Corp. | 202 | 21,406 | |||||||
Total Household Products/Wares | 82,815 | ||||||||
Housewares — 0.1% | |||||||||
Newell Rubbermaid, Inc. | 1,075 | 44,193 | |||||||
Insurance — 6.9% | |||||||||
ACE Ltd. (Switzerland) | 1,083 | 110,119 | |||||||
Aflac, Inc. | 953 | 59,277 | |||||||
Allstate Corp. (The) | 1,284 | 83,293 | |||||||
American International Group, Inc. | 2,577 | 159,310 | |||||||
Aon PLC | 1,073 | 106,957 | |||||||
Assurant, Inc. | 631 | 42,277 | |||||||
Berkshire Hathaway, Inc., Class B* | 289 | 39,336 | |||||||
Chubb Corp. (The) | 1,076 | 102,371 | |||||||
Genworth Financial, Inc., Class A* | 14,034 | 106,237 | |||||||
Hartford Financial Services Group, Inc. (The) | 4,044 | 168,109 |
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Insurance (continued) | |||||||||
Lincoln National Corp. | 2,957 | $ | 175,113 | ||||||
Marsh & McLennan Cos., Inc. | 1,501 | 85,107 | |||||||
MetLife, Inc. | 2,875 | 160,971 | |||||||
Principal Financial Group, Inc. | 2,987 | 153,203 | |||||||
Progressive Corp. (The) | 1,647 | 45,836 | |||||||
Prudential Financial, Inc. | 2,242 | 196,219 | |||||||
Torchmark Corp. | 1,171 | 68,176 | |||||||
Travelers Cos., Inc. (The) | 1,012 | 97,820 | |||||||
Unum Group | 4,882 | 174,531 | |||||||
XL Group PLC (Ireland) | 954 | 35,489 | |||||||
Total Insurance | 2,169,751 | ||||||||
Internet — 3.0% | |||||||||
eBay, Inc.* | 1,151 | 69,336 | |||||||
Expedia, Inc. | 844 | 92,291 | |||||||
F5 Networks, Inc.* | 1,178 | 141,773 | |||||||
Facebook, Inc., Class A* | 1,520 | 130,363 | |||||||
Google, Inc., Class A* | 223 | 120,429 | |||||||
Google, Inc., Class C* | 236 | 122,840 | |||||||
Priceline Group, Inc. (The)* | 90 | 103,623 | |||||||
Symantec Corp. | 1,285 | 29,876 | |||||||
TripAdvisor, Inc.* | 1,034 | 90,103 | |||||||
VeriSign, Inc.*(a) | 776 | 47,895 | |||||||
Total Internet | 948,529 | ||||||||
Iron/Steel — 0.3% | |||||||||
Allegheny Technologies, Inc. | 1,644 | 49,649 | |||||||
Nucor Corp. | 843 | 37,151 | |||||||
Total Iron/Steel | 86,800 | ||||||||
Leisure Time — 1.8% | |||||||||
Carnival Corp. (Panama) | 4,063 | 200,672 | |||||||
Harley-Davidson, Inc. | 2,782 | 156,766 | |||||||
Royal Caribbean Cruises Ltd. (Liberia) | 2,804 | 220,646 | |||||||
Total Leisure Time | 578,084 | ||||||||
Lodging — 0.6% | |||||||||
Marriott International, Inc., Class A(a) | 901 | 67,025 | |||||||
Starwood Hotels & Resorts Worldwide, Inc. | 239 | 19,381 | |||||||
Wyndham Worldwide Corp. | 611 | 50,047 | |||||||
Wynn Resorts Ltd. | 632 | 62,359 | |||||||
Total Lodging | 198,812 | ||||||||
Machinery – Construction & Mining — 0.3% | |||||||||
Caterpillar, Inc. | 466 | 39,526 | |||||||
Joy Global, Inc.(a) | 1,738 | 62,916 | |||||||
Total Machinery – Construction & Mining | 102,442 |
See accompanying Notes to Financial Statements.
65
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Machinery – Diversified — 1.3% | |||||||||
Cummins, Inc. | 1,057 | $ | 138,669 | ||||||
Deere & Co. | 588 | 57,065 | |||||||
Flowserve Corp. | 1,761 | 92,734 | |||||||
Rockwell Automation, Inc. | 331 | 41,256 | |||||||
Roper Industries, Inc. | 264 | 45,529 | |||||||
Xylem, Inc. | 1,085 | 40,221 | |||||||
Total Machinery – Diversified | 415,474 | ||||||||
Media — 4.6% | |||||||||
Cablevision Systems Corp., Class A | 911 | 21,809 | |||||||
CBS Corp., Class B | 2,312 | 128,316 | |||||||
Comcast Corp., Class A | 2,053 | 123,467 | |||||||
DIRECTV* | 586 | 54,375 | |||||||
Discovery Communications, Inc., Class A*(a) | 5,217 | 173,518 | |||||||
Discovery Communications, Inc., Class C* | 5,578 | 173,364 | |||||||
Gannett Co., Inc.* | 485 | 6,785 | |||||||
News Corp., Class A* | 1,351 | 19,711 | |||||||
Nielsen N.V. | 2,189 | 98,002 | |||||||
Scripps Networks Interactive, Inc., Class A | 1,177 | 76,940 | |||||||
TEGNA, Inc. | 970 | 31,108 | |||||||
Time Warner Cable, Inc. | 237 | 42,226 | |||||||
Time Warner, Inc. | 1,846 | 161,359 | |||||||
Twenty-First Century Fox, Inc., Class A | 4,225 | 137,503 | |||||||
Viacom, Inc., Class B | 2,370 | 153,197 | |||||||
Walt Disney Co. (The) | 577 | 65,859 | |||||||
Total Media | 1,467,539 | ||||||||
Metal Fabricate/Hardware — 0.3% | |||||||||
Precision Castparts Corp. | 532 | 106,331 | |||||||
Mining — 0.7% | |||||||||
Alcoa, Inc. | 4,426 | 49,350 | |||||||
Freeport-McMoRan, Inc. | 7,996 | 148,885 | |||||||
Newmont Mining Corp. | 944 | 22,052 | |||||||
Total Mining | 220,287 | ||||||||
Miscellaneous Manufacturing — 2.2% | |||||||||
3M Co. | 246 | 37,958 | |||||||
Dover Corp. | 841 | 59,021 | |||||||
Eaton Corp. PLC (Ireland) | 1,110 | 74,914 | |||||||
General Electric Co. | 1,327 | 35,258 | |||||||
Illinois Tool Works, Inc. | 447 | 41,030 | |||||||
Ingersoll-Rand PLC (Ireland) | 1,483 | 99,984 | |||||||
Pall Corp. | 393 | 48,909 | |||||||
Parker-Hannifin Corp. | 741 | 86,201 | |||||||
Pentair PLC (United Kingdom) | 954 | 65,588 |
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Miscellaneous Manufacturing (continued) | |||||||||
Textron, Inc. | 3,111 | $ | 138,843 | ||||||
Total Miscellaneous Manufacturing | 687,706 | ||||||||
Office/Business Equipment — 0.8% | |||||||||
Pitney Bowes, Inc. | 6,188 | 128,772 | |||||||
Xerox Corp. | 11,715 | 124,648 | |||||||
Total Office/Business Equipment | 253,420 | ||||||||
Oil & Gas — 1.9% | |||||||||
Cabot Oil & Gas Corp. | 549 | 17,315 | |||||||
Devon Energy Corp. | 104 | 6,187 | |||||||
EQT Corp. | 406 | 33,024 | |||||||
Marathon Petroleum Corp. | 1,602 | 83,801 | |||||||
Newfield Exploration Co.* | 286 | 10,330 | |||||||
Phillips 66 | 1,096 | 88,294 | |||||||
Range Resources Corp. | 108 | 5,333 | |||||||
Tesoro Corp. | 2,055 | 173,463 | |||||||
Valero Energy Corp. | 3,070 | 192,182 | |||||||
Total Oil & Gas | 609,929 | ||||||||
Oil & Gas Services — 0.4% | |||||||||
FMC Technologies, Inc.* | 539 | 22,363 | |||||||
Halliburton Co. | 888 | 38,246 | |||||||
Schlumberger Ltd. | 608 | 52,404 | |||||||
Total Oil & Gas Services | 113,013 | ||||||||
Packaging & Containers — 0.6% | |||||||||
Ball Corp. | 654 | 45,878 | |||||||
MeadWestvaco Corp. | 579 | 27,323 | |||||||
Owens-Illinois, Inc.* | 3,174 | 72,812 | |||||||
Sealed Air Corp. | 895 | 45,985 | |||||||
Total Packaging & Containers | 191,998 | ||||||||
Pharmaceuticals — 4.1% | |||||||||
Abbott Laboratories | 843 | 41,374 | |||||||
AbbVie, Inc. | 2,398 | 161,122 | |||||||
Allergan PLC* | 589 | 178,738 | |||||||
AmerisourceBergen Corp. | 651 | 69,227 | |||||||
Bristol-Myers Squibb Co. | 403 | 26,816 | |||||||
Cardinal Health, Inc. | 514 | 42,996 | |||||||
Eli Lilly & Co. | 481 | 40,159 | |||||||
Endo International PLC* | 532 | 42,374 | |||||||
Express Scripts Holding Co.*(a) | 1,321 | 117,490 | |||||||
Hospira, Inc.* | 389 | 34,508 | |||||||
Johnson & Johnson | 250 | 24,365 | |||||||
Mallinckrodt PLC (Ireland)* | 1,529 | 179,993 | |||||||
McKesson Corp. | 622 | 139,832 | |||||||
Mead Johnson Nutrition Co. | 311 | 28,058 | |||||||
Merck & Co., Inc. | 491 | 27,953 | |||||||
Mylan NV* | 1,303 | 88,422 |
See accompanying Notes to Financial Statements.
66
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Pharmaceuticals (continued) | |||||||||
Perrigo Co. PLC (Ireland) | 242 | $ | 44,729 | ||||||
Pfizer, Inc. | 448 | 15,021 | |||||||
Total Pharmaceuticals | 1,303,177 | ||||||||
Pipelines — 0.1% | |||||||||
Kinder Morgan, Inc. | 319 | 12,246 | |||||||
Spectra Energy Corp. | 279 | 9,095 | |||||||
Williams Cos., Inc. (The) | 322 | 18,480 | |||||||
Total Pipelines | 39,821 | ||||||||
Real Estate — 0.2% | |||||||||
CBRE Group, Inc., Class A* | 1,868 | 69,116 | |||||||
Real Estate Investment Trust — 0.8% | |||||||||
American Tower Corp. | 331 | 30,879 | |||||||
AvalonBay Communities, Inc. | 56 | 8,953 | |||||||
Equinix, Inc. | 98 | 24,892 | |||||||
Equity Residential | 122 | 8,561 | |||||||
General Growth Properties, Inc. | 315 | 8,083 | |||||||
HCP, Inc. | 243 | 8,862 | |||||||
Health Care REIT, Inc. | 124 | 8,138 | |||||||
Host Hotels & Resorts, Inc. | 598 | 11,858 | |||||||
Iron Mountain, Inc. | 1,047 | 32,457 | |||||||
Kimco Realty Corp. | 274 | 6,176 | |||||||
Plum Creek Timber Co., Inc. | 589 | 23,896 | |||||||
Prologis, Inc. | 202 | 7,494 | |||||||
Public Storage | 57 | 10,509 | |||||||
Simon Property Group, Inc. | 69 | 11,938 | |||||||
SL Green Realty Corp. | 60 | 6,593 | |||||||
Ventas, Inc. | 112 | 6,954 | |||||||
Vornado Realty Trust | 92 | 8,734 | |||||||
Weyerhaeuser Co. | 424 | 13,356 | |||||||
Total Real Estate Investment Trust | 238,333 | ||||||||
Retail — 8.3% | |||||||||
AutoNation, Inc.* | 2,617 | 164,819 | |||||||
AutoZone, Inc.* | 149 | 99,368 | |||||||
Bed Bath & Beyond, Inc.* | 615 | 42,423 | |||||||
Best Buy Co., Inc. | 4,280 | 139,571 | |||||||
CarMax, Inc.* | 1,130 | 74,817 | |||||||
Chipotle Mexican Grill, Inc.* | 87 | 52,634 | |||||||
Coach, Inc. | 1,057 | 36,583 | |||||||
Costco Wholesale Corp. | 218 | 29,443 | |||||||
CVS Health Corp. | 1,093 | 114,634 | |||||||
Darden Restaurants, Inc. | 1,379 | 98,019 | |||||||
Dollar General Corp. | 1,260 | 97,952 | |||||||
Dollar Tree, Inc.* | 978 | 77,252 | |||||||
Family Dollar Stores, Inc. | 79 | 6,226 | |||||||
GameStop Corp., Class A(a) | 4,468 | 191,944 | |||||||
Gap, Inc. (The) | 2,275 | 86,837 | |||||||
Home Depot, Inc. (The) | 837 | 93,016 |
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Retail (continued) | |||||||||
Kohl’s Corp. | 882 | $ | 55,222 | ||||||
L Brands, Inc. | 404 | 34,635 | |||||||
Lowe’s Cos., Inc. | 1,996 | 133,672 | |||||||
Macy’s, Inc. | 1,822 | 122,930 | |||||||
McDonald’s Corp. | 245 | 23,292 | |||||||
Nordstrom, Inc. | 565 | 42,093 | |||||||
O’Reilly Automotive, Inc.* | 378 | 85,420 | |||||||
PVH Corp. | 1,289 | 148,493 | |||||||
Ross Stores, Inc. | 872 | 42,388 | |||||||
Starbucks Corp. | 1,249 | 66,965 | |||||||
Target Corp. | 974 | 79,508 | |||||||
Tiffany & Co. | 350 | 32,130 | |||||||
TJX Cos., Inc. (The) | 716 | 47,378 | |||||||
Tractor Supply Co. | 518 | 46,589 | |||||||
Urban Outfitters, Inc.* | 2,763 | 96,705 | |||||||
Walgreens Boots Alliance, Inc. | 773 | 65,272 | |||||||
Wal-Mart Stores, Inc. | 223 | 15,817 | |||||||
Yum! Brands, Inc. | 410 | 36,933 | |||||||
Total Retail | 2,580,980 | ||||||||
Savings & Loans — 0.1% | |||||||||
People’s United Financial, Inc. | 2,750 | 44,578 | |||||||
Semiconductors — 4.7% | |||||||||
Altera Corp. | 452 | 23,142 | |||||||
Analog Devices, Inc. | 682 | 43,774 | |||||||
Applied Materials, Inc. | 5,090 | 97,830 | |||||||
Avago Technologies Ltd. (Singapore) | 1,551 | 206,175 | |||||||
Broadcom Corp., Class A | 3,715 | 191,285 | |||||||
Intel Corp. | 1,266 | 38,505 | |||||||
KLA-Tencor Corp. | 1,387 | 77,963 | |||||||
Lam Research Corp. | 1,367 | 111,205 | |||||||
Linear Technology Corp. | 915 | 40,470 | |||||||
Microchip Technology, Inc.(a) | 1,342 | 63,644 | |||||||
Micron Technology, Inc.* | 6,463 | 121,763 | |||||||
NVIDIA Corp. | 4,142 | 83,296 | |||||||
QUALCOMM, Inc. | 1,947 | 121,941 | |||||||
Skyworks Solutions, Inc. | 1,765 | 183,737 | |||||||
Texas Instruments, Inc. | 760 | 39,148 | |||||||
Xilinx, Inc. | 881 | 38,905 | |||||||
Total Semiconductors | 1,482,783 | ||||||||
Software — 1.9% | |||||||||
Adobe Systems, Inc.* | 507 | 41,072 | |||||||
Akamai Technologies, Inc.* | 576 | 40,216 | |||||||
Autodesk, Inc.* | 296 | 14,822 | |||||||
Cerner Corp.* | 582 | 40,193 | |||||||
Citrix Systems, Inc.* | 1,507 | 105,732 | |||||||
Dun & Bradstreet Corp. (The) | 268 | 32,696 |
See accompanying Notes to Financial Statements.
67
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Software (continued) | |||||||||
Electronic Arts, Inc.* | 868 | $ | 57,722 | ||||||
Fidelity National Information Services, Inc. | 917 | 56,671 | |||||||
Fiserv, Inc.* | 553 | 45,805 | |||||||
Intuit, Inc. | 299 | 30,130 | |||||||
Microsoft Corp. | 789 | 34,834 | |||||||
Oracle Corp. | 839 | 33,812 | |||||||
Paychex, Inc. | 654 | 30,660 | |||||||
Red Hat, Inc.* | 379 | 28,777 | |||||||
salesforce.com, Inc.* | 218 | 15,179 | |||||||
Total Software | 608,321 | ||||||||
Telecommunications — 1.2% | |||||||||
AT&T, Inc. | 525 | 18,648 | |||||||
Cisco Systems, Inc. | 1,536 | 42,179 | |||||||
Frontier Communications Corp.(a) | 3,397 | 16,815 | |||||||
Juniper Networks, Inc. | 6,017 | 156,261 | |||||||
Level 3 Communications, Inc.* | 683 | 35,974 | |||||||
Verizon Communications, Inc. | 2,320 | 108,135 | |||||||
Total Telecommunications | 378,012 | ||||||||
Textiles — 0.2% | |||||||||
Mohawk Industries, Inc.* | 397 | 75,787 | |||||||
Toys/Games/Hobbies — 0.2% | |||||||||
Hasbro, Inc. | 555 | 41,509 | |||||||
Mattel, Inc. | 1,035 | 26,589 | |||||||
Total Toys/Games/Hobbies | 68,098 | ||||||||
Transportation — 2.0% | |||||||||
C.H. Robinson Worldwide, Inc. | 629 | 39,243 | |||||||
CSX Corp. | 1,488 | 48,583 | |||||||
Expeditors International of Washington, Inc. | 618 | 28,493 | |||||||
FedEx Corp. | 1,030 | 175,513 | |||||||
Kansas City Southern | 502 | 45,782 | |||||||
Norfolk Southern Corp. | 428 | 37,390 | |||||||
Ryder System, Inc. | 1,414 | 123,541 | |||||||
Union Pacific Corp. | 1,133 | 108,054 | |||||||
United Parcel Service, Inc., Class B | 370 | 35,857 | |||||||
Total Transportation | 642,456 | ||||||||
Total Common Stocks (Cost $28,087,231) | 31,260,189 | ||||||||
MONEY MARKET FUND — 1.1% | |||||||||
Fidelity Institutional Prime Money Market Portfolio – Class I, 0.07%(b) (Cost $345,390) | 345,390 | 345,390 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
REPURCHASE AGREEMENTS — 2.4%(c) | |||||||||
Citibank NA, dated 06/30/15, due 07/01/15, 0.14%, total to be received $115,382, (collateralized by various U.S. Government Agency Obligations, 0.63% – 6.50%, 11/15/16 – 07/01/45, totaling $117,690) | $ | 115,382 | $ | 115,382 | |||||
HSBC Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.12%, total to be received $153,831, (collateralized by various U.S. Government Agency Obligations, 2.50% – 6.50%, 07/01/18 – 07/01/45, totaling $156,907) | 153,830 | 153,830 | |||||||
Mizuho Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.14%, total to be received $250,001, (collateralized by various U.S. Government Agency Obligations, 0.00% – 8.50%, 06/13/16 – 04/20/44, totaling $255,000) | 250,000 | 250,000 | |||||||
Morgan Stanley & Co. LLC, dated 06/30/15, due 07/01/15, 0.09%, total to be received $250,001, (collateralized by various U.S. Government Agency Obligations, 0.75% – 9.50%, 02/16/16 – 05/01/45, totaling $255,000) | 250,000 | 250,000 | |||||||
Total Repurchase Agreements (Cost $769,212) | 769,212 | ||||||||
Total Investments — 102.5% (Cost $29,201,833) | 32,374,791 | ||||||||
Liabilities in Excess of Other Assets — (2.5)% | (800,300 | ) | |||||||
Net Assets — 100.0% | $ | 31,574,491 |
PLC — Public Limited Company
* | 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 $905,203; the aggregate market value of the collateral held by the fund is $928,924. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $159,712. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2015. |
(c) | Collateral received from brokers for securities lending was invested in these short-term investments. |
See accompanying Notes to Financial Statements.
68
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2015
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Advertising | 0.4 | % | ||
Aerospace/Defense | 1.1 | |||
Agriculture | 0.7 | |||
Airlines | 1.6 | |||
Apparel | 1.3 | |||
Auto Manufacturers | 1.5 | |||
Auto Parts & Equipment | 1.3 | |||
Banks | 5.1 | |||
Beverages | 0.7 | |||
Biotechnology | 2.3 | |||
Building Materials | 0.7 | |||
Chemicals | 3.5 | |||
Coal | 0.0 | ** | ||
Commercial Services | 3.1 | |||
Computers | 3.6 | |||
Cosmetics/Personal Care | 0.2 | |||
Distribution/Wholesale | 0.9 | |||
Diversified Financial Services | 6.0 | |||
Electric | 1.5 | |||
Electrical Components & Equipment | 0.3 | |||
Electronics | 2.4 | |||
Engineering & Construction | 0.7 | |||
Environmental Control | 0.3 | |||
Food | 1.6 | |||
Forest Products & Paper | 0.5 | |||
Gas | 0.2 | |||
Hand/Machine Tools | 0.3 | |||
Healthcare – Products | 2.1 | |||
Healthcare – Services | 3.2 | |||
Home Builders | 0.8 | |||
Home Furnishings | 1.2 | |||
Household Products/Wares | 0.3 | |||
Housewares | 0.1 |
![]() | ![]() | |||
% of Net Assets | ||||
Insurance | 6.9 | % | ||
Internet | 3.0 | |||
Iron/Steel | 0.3 | |||
Leisure Time | 1.8 | |||
Lodging | 0.6 | |||
Machinery – Construction & Mining | 0.3 | |||
Machinery – Diversified | 1.3 | |||
Media | 4.6 | |||
Metal Fabricate/Hardware | 0.3 | |||
Mining | 0.7 | |||
Miscellaneous Manufacturing | 2.2 | |||
Office/Business Equipment | 0.8 | |||
Oil & Gas | 1.9 | |||
Oil & Gas Services | 0.4 | |||
Packaging & Containers | 0.6 | |||
Pharmaceuticals | 4.1 | |||
Pipelines | 0.1 | |||
Real Estate | 0.2 | |||
Real Estate Investment Trust | 0.8 | |||
Retail | 8.3 | |||
Savings & Loans | 0.1 | |||
Semiconductors | 4.7 | |||
Software | 1.9 | |||
Telecommunications | 1.2 | |||
Textiles | 0.2 | |||
Toys/Games/Hobbies | 0.2 | |||
Transportation | 2.0 | |||
Money Market Fund | 1.1 | |||
Repurchase Agreements | 2.4 | |||
Total Investments | 102.5 | |||
Liabilities in Excess of Other Assets | (2.5 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
69
ADVISORSHARES MADRONA GLOBAL BOND ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
EXCHANGE TRADED FUNDS — 99.0% | |||||||||
Debt Fund — 99.0% | |||||||||
iShares iBoxx $Investment Grade Corporate Bond ETF | 28,330 | $ | 3,278,348 | ||||||
iShares International Treasury Bond ETF | 12,308 | 1,105,135 | |||||||
iShares Utilities Bond ETF | 27,149 | 1,351,613 | |||||||
PIMCO 1 – 5 Year U.S. TIPS Index ETF(a) | 10,960 | 572,331 | |||||||
PowerShares Build America Bond Portfolio(a) | 47,222 | 1,359,049 | |||||||
PowerShares Emerging Markets Sovereign Debt Portfolio | 59,377 | 1,645,337 | |||||||
PowerShares Financial Preferred Portfolio(a) | 154,898 | 2,814,497 | |||||||
PowerShares Fundamental Investment Grade Corporate Bond Portfolio | 44,508 | 1,128,723 | |||||||
PowerShares International Corporate Bond Portfolio(a) | 52,796 | 1,396,454 | |||||||
PowerShares National AMT-Free Municipal Bond Portfolio(a) | 45,556 | 1,126,144 | |||||||
PowerShares Senior Loan Portfolio(a) | 59,908 | 1,425,211 | |||||||
SPDR Barclays Convertible Securities ETF(a) | 52,864 | 2,514,740 | |||||||
SPDR Barclays High Yield Bond ETF(a) | 36,285 | 1,394,433 | |||||||
SPDR DB International Government Inflation-Protected Bond ETF(a) | 15,228 | 836,169 | |||||||
SPDR Nuveen S&P High Yield Municipal Bond ETF | 20,068 | 1,112,369 | |||||||
Vanguard Intermediate-Term Government Bond ETF(a) | 13,147 | 847,719 | |||||||
Vanguard Long-Term Government Bond ETF(a) | 10,821 | 790,582 | |||||||
Vanguard Mortgage-Backed Securities ETF(a) | 37,560 | 1,984,295 | |||||||
Vanguard Short-Term Bond ETF | 158 | 12,670 | |||||||
WisdomTree Emerging Markets Corporate Bond Fund | 15,497 | 1,117,024 | |||||||
Total Exchange Traded Funds (Cost $28,048,695) | 27,812,843 | ||||||||
MONEY MARKET FUND — 1.2% | |||||||||
Fidelity Institutional Prime Money Market Portfolio – Class I, 0.07%(b) (Cost $326,686) | 326,686 | 326,686 |
![]() | ![]() | ![]() | ||||||||||
Investments | Principal | Value | ||||||||||
REPURCHASE AGREEMENTS — 29.6%(c) | ||||||||||||
Citibank NA, dated 06/30/15, due 07/01/15, 0.14%, total to be received $1,249,163, (collateralized by various U.S. Government Agency Obligations, 0.63% – 6.50%, 11/15/16 – 07/01/45, totaling $1,274,141) | $ | 1,249,158 | $ | 1,249,158 | ||||||||
Mizuho Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.14%, total to be received $1,938,285, (collateralized by various U.S. Government Agency Obligations, 0.00% – 8.50%, 06/13/16 – 04/20/44, totaling $1,977,042) | 1,938,277 | 1,938,277 | ||||||||||
Morgan Stanley & Co. LLC, dated 06/30/15, due 07/01/15, 0.09%, total to be received $1,938,282, (collateralized by various U.S. Government Agency Obligations, 0.75% – 9.50%, 02/16/16 – 05/01/45, totaling $1,977,043) | 1,938,277 | 1,938,277 | ||||||||||
HSBC Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.10%, total to be received $1,938,282, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.38%, 07/15/15 – 01/15/37, totaling $1,977,050) | 1,938,277 | 1,938,277 | ||||||||||
RBC Capital Markets LLC, dated 06/30/15, due 07/01/15, 0.10%, total to be received $1,263,712, (collateralized by various U.S. Government Agency Obligations, 2.38% – 6.50%, 03/01/19 – 02/20/65, totaling $1,288,982) | 1,263,708 | 1,263,708 | ||||||||||
Total Repurchase Agreements (Cost $8,327,697) | 8,327,697 | |||||||||||
Total Investments — 129.8% (Cost $36,703,078) | 36,467,226 | |||||||||||
Liabilities in Excess of Other Assets — (29.8)% | (8,371,507 | ) | ||||||||||
Net Assets — 100.0% | $ | 28,095,719 |
ETF — Exchange Traded Fund
TIPS — Treasury Inflation Protected Securities
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $8,092,592; the aggregate market value of the collateral held by the fund is $8,327,697. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2015. |
(c) | Collateral received from brokers for securities lending was invested in these short-term investments. |
See accompanying Notes to Financial Statements.
70
ADVISORSHARES MADRONA GLOBAL BOND ETF
Schedule of Investments (continued)
June 30, 2015
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Debt Fund | 99.0 | % | ||
Money Market Fund | 1.2 | |||
Repurchase Agreements | 29.6 | |||
Total Investments | 129.8 | |||
Liabilities in Excess of Other Assets | (29.8 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
71
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS — 97.1% | |||||||||
ARGENTINA — 1.3% | |||||||||
Petrobras Argentina SA(a) | 19,436 | $ | 129,638 | ||||||
Telecom Argentina SA(a) | 5,971 | 107,418 | |||||||
Total Argentina | 237,056 | ||||||||
AUSTRALIA — 1.8% | |||||||||
Alumina Ltd.(a) | 26,237 | 122,527 | |||||||
Cochlear Ltd.(a) | 118 | 3,646 | |||||||
CSL Ltd.(a) | 740 | 24,642 | |||||||
National Australia Bank Ltd.(a) | 3,403 | 43,286 | |||||||
Newcrest Mining Ltd.*(a)(b) | 11,533 | 116,253 | |||||||
QBE Insurance Group Ltd.(a) | 4,611 | 48,646 | |||||||
Total Australia | 359,000 | ||||||||
AUSTRIA — 0.7% | |||||||||
Andritz AG(a) | 1,402 | 15,512 | |||||||
Erste Group Bank AG*(a) | 9,936 | 142,185 | |||||||
Total Austria | 157,697 | ||||||||
BELGIUM — 0.8% | |||||||||
Delhaize Group(a) | 1,196 | 24,673 | |||||||
KBC Groep NV(a) | 4,054 | 135,972 | |||||||
Total Belgium | 160,645 | ||||||||
BERMUDA — 0.1% | |||||||||
Brookfield Infrastructure Partners LP(b) | 407 | 18,164 | |||||||
BRAZIL — 5.6% | |||||||||
Banco Bradesco SA(a) | 11,084 | 101,529 | |||||||
Banco do Brasil SA(a)(b) | 15,568 | 121,119 | |||||||
BB Seguridade Participacoes SA(a) | 5,317 | 58,859 | |||||||
BRF SA(a) | 3,517 | 73,540 | |||||||
Cia Brasileira de Distribuicao Grupo Pao de Acucar(a)(b) | 2,863 | 67,767 | |||||||
Cia de Saneamento Basico do Estado de Sao Paulo(a) | 18,951 | 98,166 | |||||||
Cia Paranaense de Energia(a) | 8,901 | 97,911 | |||||||
Cyrela Brazil Realty SA Empreendimentos e Participacoes(a) | 6,747 | 21,388 | |||||||
Estacio Participacoes SA(a) | 22,897 | 132,803 | |||||||
Fibria Celulose SA(a)(b) | 2,850 | 38,789 | |||||||
Gerdau SA(a) | 4,166 | 10,040 | |||||||
Hypermarcas SA*(a) | 4,037 | 29,470 | |||||||
Itau Unibanco Holding SA(a) | 8,371 | 91,662 | |||||||
Kroton Educacional SA(a)(b) | 33,169 | 129,359 | |||||||
Localiza Rent A Car SA(a) | 686 | 6,750 | |||||||
Total Brazil | 1,079,152 |
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
CANADA — 4.8% | |||||||||
Agrium, Inc.(b) | 703 | $ | 74,483 | ||||||
Bank of Montreal | 990 | 58,687 | |||||||
Canadian National Railway Co. | 607 | 35,054 | |||||||
Canadian Pacific Railway Ltd. | 506 | 81,076 | |||||||
Gildan Activewear, Inc.(b) | 1,398 | 46,469 | |||||||
Magna International, Inc. | 1,769 | 99,222 | |||||||
Manulife Financial Corp. | 4,427 | 82,298 | |||||||
Methanex Corp. | 1,244 | 69,241 | |||||||
Mitel Networks Corp.* | 14,159 | 125,024 | |||||||
Silver Wheaton Corp. | 3,336 | 57,846 | |||||||
Teck Resources Ltd., Class B | 8,768 | 86,891 | |||||||
Toronto-Dominion Bank (The) | 493 | 20,957 | |||||||
Valeant Pharmaceuticals International, Inc.* | 608 | 135,067 | |||||||
Total Canada | 972,315 | ||||||||
CHILE — 0.7% | |||||||||
Cencosud SA(a)(b) | 11,506 | 82,958 | |||||||
Empresa Nacional de Electricidad SA(a) | 1,134 | 47,004 | |||||||
Sociedad Quimica y Minera de Chile SA(a) | 1,096 | 17,558 | |||||||
Total Chile | 147,520 | ||||||||
CHINA — 5.3% | |||||||||
Agricultural Bank of China Ltd.(a) | 7,230 | 92,544 | |||||||
Autohome, Inc.*(a) | 790 | 39,927 | |||||||
Baidu, Inc.*(a) | 428 | 85,206 | |||||||
Bank of China Ltd.(a)(b) | 4,257 | 68,708 | |||||||
China Construction Bank Corp.(a) | 4,912 | 89,644 | |||||||
China Life Insurance Co., Ltd.(a) | 4,176 | 90,870 | |||||||
China Southern Airlines Co. Ltd.*(a) | 1,322 | 77,125 | |||||||
China Telecom Corp. Ltd.(a) | 218 | 12,869 | |||||||
Huaneng Power International, Inc.(a)(b) | 1,439 | 75,950 | |||||||
Industrial & Commercial Bank of China Ltd.(a)(b) | 3,555 | 56,311 | |||||||
NetEase, Inc.(a) | 250 | 36,216 | |||||||
Ping An Insurance Group Co., of China Ltd.(a) | 3,161 | 84,494 | |||||||
Qihoo 360 Technology Co., Ltd.*(a) | 2,099 | 142,081 | |||||||
Semiconductor Manufacturing International Corp.*(a) | 4,408 | 23,847 | |||||||
Tencent Holdings Ltd.(a) | 1,306 | 26,185 | |||||||
Total China | 1,001,977 |
See accompanying Notes to Financial Statements.
72
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
DENMARK — 1.6% | |||||||||
Danske Bank A/S(a) | 10,307 | $ | 151,308 | ||||||
Novo Nordisk A/S(a) | 625 | 34,225 | |||||||
Pandora A/S(a) | 4,877 | 130,898 | |||||||
Vestas Wind Systems A/S(a) | 1,220 | 20,362 | |||||||
Total Denmark | 336,793 | ||||||||
EGYPT — 0.7% | |||||||||
Commercial International Bank Egypt SAE(a) | 17,986 | 132,557 | |||||||
FINLAND — 1.3% | |||||||||
Nokia OYJ(a) | 8,250 | 56,513 | |||||||
Stora Enso OYJ(a) | 14,344 | 147,456 | |||||||
UPM-Kymmene OYJ(a) | 2,849 | 50,456 | |||||||
Total Finland | 254,425 | ||||||||
FRANCE — 9.5% | |||||||||
Airbus Group SE(a) | 4,987 | 81,164 | |||||||
Alcatel-Lucent*(a) | 36,529 | 132,235 | |||||||
Arkema SA(a) | 1,114 | 80,564 | |||||||
Atos Se(a)(b) | 5,959 | 89,623 | |||||||
AXA SA(a) | 1,189 | 30,022 | |||||||
BNP Paribas SA(a) | 3,367 | 102,592 | |||||||
Cap Gemini SA(a)(b) | 184 | 8,171 | |||||||
Carrefour SA(a)(b) | 9,603 | 61,939 | |||||||
Cie de Saint-Gobain(a) | 11,607 | 105,043 | |||||||
Cie Generale des Etablissements Michelin(a) | 4,257 | 89,440 | |||||||
Credit Agricole SA(a)(b) | 16,436 | 122,448 | |||||||
Ingenico Group(a) | 2,649 | 61,987 | |||||||
Kering(a) | 3,128 | 55,960 | |||||||
Orange SA(a) | 8,471 | 130,115 | |||||||
Pernod Ricard SA(a) | 1,167 | 26,806 | |||||||
Publicis Groupe SA(a) | 2,064 | 38,308 | |||||||
Renault SA(a)(b) | 7,437 | 157,517 | |||||||
Safran SA(a) | 2,942 | 49,896 | |||||||
Schneider Electric SE(a) | 3,132 | 43,425 | |||||||
Societe Generale SA(a)(b) | 12,368 | 116,630 | |||||||
Suez Environnement Co.(a) | 4,162 | 38,748 | |||||||
Valeo SA(a) | 1,250 | 99,050 | |||||||
Veolia Environnement SA(a)(b) | 5,500 | 112,310 | |||||||
Total France | 1,833,993 | ||||||||
GERMANY — 6.4% | |||||||||
adidas AG(a) | 1,005 | 38,649 | |||||||
Bayer AG(a) | 222 | 31,299 | |||||||
Bayerische Motoren Werke AG(a) | 1,751 | 64,314 | |||||||
Commerzbank AG*(a)(b) | 10,296 | 132,613 | |||||||
Continental AG(a) | 1,318 | 62,994 | |||||||
Daimler AG(a) | 1,174 | 107,609 | |||||||
Deutsche Boerse AG(a) | 1,607 | 13,306 |
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
GERMANY (continued) | |||||||||
Deutsche Lufthansa AG*(a) | 10,069 | $ | 130,897 | ||||||
Deutsche Post AG(a) | 319 | 9,398 | |||||||
Deutsche Telekom AG(a)(b) | 3,620 | 62,318 | |||||||
Fresenius SE & Co. KGaA(a)(b) | 2,173 | 35,007 | |||||||
GEA Group AG(a) | 405 | 18,241 | |||||||
HeidelbergCement AG(a) | 7,185 | 114,385 | |||||||
Infineon Technologies AG(a) | 7,729 | 96,767 | |||||||
Porsche Automobil Holding SE(a) | 15,358 | 129,314 | |||||||
ProSiebenSat.1 Media AG(a) | 857 | 10,618 | |||||||
Symrise AG(a) | 2,243 | 34,879 | |||||||
Volkswagen AG(a) | 2,579 | 119,433 | |||||||
Total Germany | 1,212,041 | ||||||||
GREECE — 0.5% | |||||||||
Hellenic Telecommunications Organization SA(a) | 22,060 | 100,761 | |||||||
HONG KONG — 4.5% | |||||||||
BOC Hong Kong Holdings Ltd.(a)(b) | 1,140 | 95,122 | |||||||
Cathay Pacific Airways Ltd.(a) | 10,941 | 134,356 | |||||||
China State Construction International Holdings Ltd.(a) | 1,237 | 110,514 | |||||||
China Unicom Hong Kong Ltd.(a) | 2,086 | 32,750 | |||||||
Hang Seng Bank Ltd.(a) | 3,444 | 67,296 | |||||||
Hutchison Telecommunications Hong Kong Holdings Ltd.(a)(b) | 12,018 | 75,113 | |||||||
Lenovo Group Ltd.(a) | 2,862 | 79,392 | |||||||
Swire Pacific Ltd., Class A(a) | 9,557 | 120,991 | |||||||
Techtronic Industries Co., Ltd.(a)(b) | 4,689 | 77,697 | |||||||
Wharf Holdings Ltd.(a)(b) | 5,002 | 66,427 | |||||||
Total Hong Kong | 859,658 | ||||||||
INDIA — 1.6% | |||||||||
HDFC Bank Ltd.(a) | 1,279 | 77,418 | |||||||
ICICI Bank Ltd.(a) | 8,012 | 83,485 | |||||||
Infosys Ltd.(a)(b) | 616 | 9,764 | |||||||
Tata Motors Ltd.(a) | 3,288 | 113,337 | |||||||
Wipro Ltd.(a) | 1,825 | 21,845 | |||||||
Total India | 305,849 | ||||||||
INDONESIA — 0.7% | |||||||||
PT Bank Mandiri Persero Tbk(a)(b) | 9,268 | 69,695 | |||||||
PT Bank Rakyat Indonesia Persero Tbk(a) | 3,636 | 55,813 | |||||||
Total Indonesia | 125,508 | ||||||||
IRELAND — 1.5% | |||||||||
CRH PLC(a) | 3,379 | 94,984 | |||||||
Ryanair Holdings PLC(a) | 2,184 | 155,829 | |||||||
Shire PLC(a) | 155 | 37,431 | |||||||
Total Ireland | 288,244 |
See accompanying Notes to Financial Statements.
73
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
ISRAEL — 0.1% | |||||||||
Bezeq The Israeli Telecommunication Corp. Ltd.(a) | 1,325 | $ | 11,355 | ||||||
ITALY — 1.0% | |||||||||
Atlantia SpA(a) | 4,060 | 50,263 | |||||||
Intesa Sanpaolo SpA(a)(b) | 6,276 | 137,006 | |||||||
Luxottica Group SpA(a)(b) | 282 | 18,739 | |||||||
Telecom Italia SpA*(a) | 227 | 2,887 | |||||||
Total Italy | 208,895 | ||||||||
JAPAN — 11.7% | |||||||||
Asahi Glass Co. Ltd.(a)(b) | 2,550 | 15,300 | |||||||
Astellas Pharma, Inc.(a) | 3,728 | 53,161 | |||||||
Bridgestone Corp.(a) | 2,287 | 42,287 | |||||||
East Japan Railway Co.(a)(b) | 1,735 | 25,912 | |||||||
Fast Retailing Co. Ltd.(a) | 795 | 36,157 | |||||||
Fuji Heavy Industries Ltd.(a) | 1,814 | 134,145 | |||||||
FUJIFILM Holdings Corp.(a)(b) | 816 | 29,148 | |||||||
Hitachi Ltd.(a) | 918 | 60,465 | |||||||
Honda Motor Co., Ltd.(a) | 3,052 | 98,885 | |||||||
Hoya Corp.(a) | 1,551 | 62,490 | |||||||
Isuzu Motors Ltd.(a)(b) | 6,872 | 90,229 | |||||||
ITOCHU Corp.(a)(b) | 5,788 | 153,324 | |||||||
JGC Corp.(a)(b) | 2,404 | 90,967 | |||||||
KDDI Corp.(a) | 7,848 | 94,294 | |||||||
Kubota Corp.(a)(b) | 269 | 21,410 | |||||||
Makita Corp.(a) | 762 | 41,559 | |||||||
Mazda Motor Corp.(a)(b) | 14,486 | 141,818 | |||||||
MS&AD Insurance Group Holdings, Inc.(a)(b) | 7,304 | 113,504 | |||||||
Nidec Corp.(a)(b) | 3,104 | 57,983 | |||||||
Nissan Motor Co., Ltd.(a) | 4,834 | 101,079 | |||||||
NSK Ltd.(a)(b) | 4,505 | 139,700 | |||||||
ORIX Corp.(a)(b) | 1,036 | 77,203 | |||||||
Panasonic Corp.(a)(b) | 5,849 | 80,248 | |||||||
Santen Pharmaceutical Co. Ltd.(a) | 4,316 | 60,953 | |||||||
Sumitomo Metal Mining Co., Ltd.(a) | 2,922 | 44,385 | |||||||
Sumitomo Mitsui Trust Holdings, Inc.(a)(b) | 8,109 | 37,220 | |||||||
TDK Corp.(a)(b) | 1,769 | 136,355 | |||||||
Tokio Marine Holdings, Inc.(a) | 2,133 | 89,053 | |||||||
Toray Industries, Inc.(a) | 592 | 50,225 | |||||||
Toyota Motor Corp.(a) | 617 | 82,524 | |||||||
Total Japan | 2,261,983 |
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
LUXEMBOURG — 0.5% | |||||||||
Oriflame Cosmetics SA*(a) | 11,792 | $ | 91,978 | ||||||
MEXICO — 1.1% | |||||||||
Empresas ICA SAB de CV*(a)(b) | 38,202 | 119,572 | |||||||
Grupo Financiero Banorte SAB de CV(a) | 1,998 | 54,875 | |||||||
Grupo Televisa SAB(a) | 852 | 33,075 | |||||||
Total Mexico | 207,522 | ||||||||
NETHERLANDS — 2.6% | |||||||||
Aegon NV(c) | 15,538 | 114,981 | |||||||
Akzo Nobel NV(a) | 3,610 | 87,795 | |||||||
ASML Holding N.V.(c) | 800 | 83,304 | |||||||
Heineken NV(a) | 116 | 4,428 | |||||||
ING Groep NV(a) | 3,421 | 56,720 | |||||||
Koninklijke Ahold NV(a) | 314 | 5,925 | |||||||
Koninklijke Philips NV(c) | 3,677 | 93,616 | |||||||
Reed Elsevier NV(a) | 149 | 6,981 | |||||||
TNT Express NV(a) | 6,778 | 57,206 | |||||||
Wolters Kluwer NV(a) | 438 | 13,079 | |||||||
Total Netherlands | 524,035 | ||||||||
NORWAY — 3.1% | |||||||||
Marine Harvest ASA(a)(b) | 12,101 | 138,194 | |||||||
Norsk Hydro ASA(a) | 29,943 | 124,263 | |||||||
Orkla ASA(a) | 14,167 | 112,452 | |||||||
Telenor ASA(a) | 1,541 | 101,097 | |||||||
Yara International ASA(a) | 2,312 | 120,340 | |||||||
Total Norway | 596,346 | ||||||||
RUSSIA — 2.3% | |||||||||
Gazprom Neft OAO(a) | 10,766 | 131,345 | |||||||
Gazprom OAO(a) | 20,437 | 107,703 | |||||||
Lukoil OAO(a) | 2,287 | 102,709 | |||||||
MMC Norilsk Nickel OJSC(a) | 7,014 | 118,887 | |||||||
Total Russia | 460,644 | ||||||||
SINGAPORE — 1.6% | |||||||||
DBS Group Holdings Ltd.(a) | 1,163 | 71,629 | |||||||
Global Logistic Properties Ltd.(a)(b) | 1,185 | 22,355 | |||||||
Keppel Corp. Ltd.(a) | 5,753 | 70,187 | |||||||
Singapore Airlines Ltd.(a) | 3,619 | 57,216 | |||||||
United Overseas Bank Ltd.(a) | 2,072 | 71,349 | |||||||
Total Singapore | 292,736 |
See accompanying Notes to Financial Statements.
74
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
SOUTH AFRICA — 1.4% | |||||||||
Impala Platinum Holdings Ltd.*(a)(b) | 20,449 | $ | 91,203 | ||||||
Imperial Holdings Ltd.(a)(b) | 3,110 | 47,645 | |||||||
Nampak Ltd.(a) | 1,659 | 4,612 | |||||||
Nedbank Group Ltd.(a) | 813 | 16,219 | |||||||
Sanlam Ltd.(a) | 4,526 | 49,922 | |||||||
Standard Bank Group Ltd.(a)(b) | 4,691 | 62,156 | |||||||
Total South Africa | 271,757 | ||||||||
SOUTH KOREA — 3.2% | |||||||||
KB Financial Group, Inc.(a) | 1,207 | 39,674 | |||||||
Korea Electric Power Corp.(a) | 7,145 | 145,473 | |||||||
KT Corp.(a) | 9,241 | 117,083 | |||||||
LG Display Co., Ltd.(a)(b) | 10,711 | 124,140 | |||||||
POSCO(a) | 2,425 | 119,043 | |||||||
Shinhan Financial Group Co., Ltd.(a) | 1,062 | 39,358 | |||||||
SK Telecom Co., Ltd.(a) | 1,815 | 44,994 | |||||||
Total South Korea | 629,765 | ||||||||
SPAIN — 2.0% | |||||||||
Banco Bilbao Vizcaya Argentaria SA(a) | 13,338 | 131,646 | |||||||
Banco Popular Espanol SA*(a) | 5,694 | 110,919 | |||||||
Banco Santander SA(a) | 16,183 | 113,443 | |||||||
Grifols SA(a) | 453 | 14,029 | |||||||
Total Spain | 370,037 | ||||||||
SWEDEN — 3.5% | |||||||||
Atlas Copco AB, Class A(a) | 973 | 27,312 | |||||||
Electrolux AB(a) | 2,087 | 131,210 | |||||||
Elekta AB, Class B(a) | 3,529 | 22,127 | |||||||
Meda AB(a) | 4,119 | 56,719 | |||||||
Nordea Bank AB(a)(b) | 1,197 | 15,010 | |||||||
Sandvik AB(a)(b) | 6,302 | 70,141 | |||||||
SKF AB(a)(b) | 4,422 | 101,352 | |||||||
Telefonaktiebolaget LM Ericsson(a) | 9,662 | 100,871 | |||||||
Volvo AB(a) | 10,699 | 133,631 | |||||||
Total Sweden | 658,373 | ||||||||
SWITZERLAND — 3.4% | |||||||||
ABB Ltd.*(a) | 1,013 | 21,151 | |||||||
Adecco SA*(a)(b) | 1,937 | 78,642 | |||||||
Credit Suisse Group AG*(a) | 4,547 | 125,497 | |||||||
Glencore PLC(a) | 8,493 | 68,241 | |||||||
Holcim Ltd.*(a) | 3,075 | 45,049 | |||||||
Julius Baer Group Ltd.*(a) | 8,732 | 97,885 | |||||||
STMicroelectronics NV (c) | 13,893 | 112,811 | |||||||
UBS AG*(b) | 6,216 | 132,028 | |||||||
Total Switzerland | 681,304 |
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
TAIWAN — 2.4% | |||||||||
Advanced Semiconductor Engineering, Inc.(a) | 7,611 | $ | 50,233 | ||||||
AU Optronics Corp.(a)(b) | 29,675 | 132,351 | |||||||
Siliconware Precision Industries Co., Ltd.(a) | 11,701 | 87,172 | |||||||
Taiwan Semiconductor Manufacturing Co., Ltd.(a) | 2,948 | 66,949 | |||||||
United Microelectronics Corp.(a) | 51,957 | 106,512 | |||||||
Total Taiwan | 443,217 | ||||||||
THAILAND — 0.2% | |||||||||
Kasikornbank PCL(a)(b) | 1,327 | 29,990 | |||||||
TURKEY — 1.1% | |||||||||
Akbank TAS(a)(b) | 15,605 | 90,509 | |||||||
Turkcell Iletisim Hizmetleri AS(a) | 4,106 | 47,178 | |||||||
Turkiye Garanti Bankasi AS(a) | 24,127 | 76,483 | |||||||
Total Turkey | 214,170 | ||||||||
UNITED KINGDOM — 6.5% | |||||||||
Aberdeen Asset Management PLC(a)(b) | 688 | 8,830 | |||||||
Anglo American PLC(a) | 4,551 | 32,949 | |||||||
ARM Holdings PLC(a) | 806 | 39,712 | |||||||
Ashtead Group PLC(a) | 1,701 | 118,339 | |||||||
Aviva PLC(a)(b) | 4,453 | 69,333 | |||||||
Barclays PLC(a)(b) | 6,718 | 110,444 | |||||||
Carnival PLC(a) | 2,356 | 120,816 | |||||||
G4S PLC(a)(b) | 2,670 | 56,764 | |||||||
ITV PLC(a) | 2,250 | 93,329 | |||||||
Legal & General Group PLC(a)(b) | 2,254 | 44,990 | |||||||
Lloyds Banking Group PLC(a) | 12,966 | 70,405 | |||||||
Marks & Spencer Group PLC(a) | 669 | 11,293 | |||||||
Polyus Gold International Ltd. (d) | 6,805 | 18,510 | |||||||
Provident Financial PLC(a) | 1,240 | 57,509 | |||||||
Prudential PLC(a) | 1,650 | 80,124 | |||||||
Royal Mail PLC(a) | 7,546 | 121,416 | |||||||
RSA Insurance Group PLC(a)(b) | 20,829 | 134,555 | |||||||
Smith & Nephew PLC(a) | 158 | 5,364 | |||||||
Wolseley PLC(a) | 13,287 | 86,100 | |||||||
Total United Kingdom | 1,280,782 | ||||||||
Total Common Stocks (Cost $19,146,952) | 18,818,244 | ||||||||
MONEY MARKET FUND — 2.7% | |||||||||
Fidelity Institutional Prime Money Market Portfolio — Class I, 0.07%(e) (Cost $516,762) | 516,762 | 516,762 |
See accompanying Notes to Financial Statements.
75
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
REPURCHASE AGREEMENTS — 12.6%(f) | |||||||||
Citibank NA, dated 06/30/15, due 07/01/15, 0.14%, total to be received $365,455, (collateralized by various U.S. Government Agency Obligations, 0.63% – 6.50%, 11/15/16 – 07/01/45, totaling $372,763) | $ | 365,454 | $ | 365,454 | |||||
HSBC Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.10%, total to be received $567,066, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.38%, 07/15/15 – 01/15/37, totaling $578,407) | 567,064 | 567,064 | |||||||
Mizuho Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.14%, total to be received $567,066, (collateralized by various U.S. Government Agency Obligations, 0.00% – 8.50%, 06/13/16 – 04/20/44, totaling $578,405) | $ | 567,064 | 567,064 | ||||||
Morgan Stanley & Co. LLC, dated 06/30/15, due 07/01/15, 0.09%, total to be received $567,065, (collateralized by various U.S. Government Agency Obligations, 0.75% – 9.50%, 02/16/16 – 05/01/45, totaling $578,405) | 567,064 | 567,064 | |||||||
RBC Capital Markets LLC, dated 06/30/15, due 07/01/15, 0.10%, total to be received $369,715, (collateralized by various U.S. Government Agency Obligations, 2.38% – 6.50%, 03/01/19 – 02/20/65, totaling $377,108) | 369,714 | 369,714 | |||||||
Total Repurchase Agreements (Cost $2,436,360) | 2,436,360 | ||||||||
Total Investments — 112.4% (Cost $22,100,074) | 21,771,366 | ||||||||
Liabilities in Excess of Other Assets — (12.4)% | (2,406,699 | ) | |||||||
Net Assets — 100.0% | $ | 19,364,667 |
LP — Limited Partnership
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 $2,356,217; the aggregate market value of the collateral held by the fund is $2,436,360. |
(c) | Registered Shares. |
(d) | Global Depositary Receipt. |
(e) | Rate shown reflects the 7-day yield as of June 30, 2015. |
(f) | Collateral received from brokers for securities lending was invested in these short-term investments. |
See accompanying Notes to Financial Statements.
76
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2015
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Advertising | 0.2 | % | ||
Aerospace/Defense | 0.7 | |||
Airlines | 2.9 | |||
Apparel | 0.4 | |||
Auto Manufacturers | 7.6 | |||
Auto Parts & Equipment | 2.0 | |||
Banks | 19.3 | |||
Beverages | 0.2 | |||
Biotechnology | 0.1 | |||
Building Materials | 1.9 | |||
Chemicals | 2.8 | |||
Commercial Services | 3.0 | |||
Computers | 2.1 | |||
Cosmetics/Personal Care | 0.5 | |||
Distribution/Wholesale | 1.2 | |||
Diversified Financial Services | 1.7 | |||
Electric | 2.0 | |||
Electrical Components & Equipment | 0.5 | |||
Electronics | 2.1 | |||
Energy – Alternate Sources | 0.1 | |||
Engineering & Construction | 1.7 | |||
Food | 2.9 | |||
Forest Products & Paper | 1.2 | |||
Hand/Machine Tools | 1.0 | |||
Healthcare – Products | 0.2 | |||
Healthcare – Services | 0.2 | |||
Holding Companies – Diversified | 1.6 | |||
Home Furnishings | 1.1 | |||
Insurance | 5.6 | |||
Internet | 1.5 | |||
Iron/Steel | 0.7 | |||
Leisure Time | 0.6 | |||
Machinery – Construction & Mining | 0.6 | |||
Machinery – Diversified | 0.3 | |||
Media | 0.8 | |||
Metal Fabricate/Hardware | 1.2 | |||
Mining | 4.6 | |||
Miscellaneous Manufacturing | 0.2 | |||
Oil & Gas | 2.4 | |||
Packaging & Containers | 0.0 | ** | ||
Pharmaceuticals | 2.3 | |||
Real Estate | 0.2 | |||
Retail | 1.3 | |||
Semiconductors | 3.4 | |||
Software | 0.8 | |||
Telecommunications | 6.4 | |||
Transportation | 1.7 | |||
Water | 1.3 | |||
Money Market Fund | 2.7 | |||
Repurchase Agreements | 12.6 | |||
Total Investments | 112.4 | |||
Liabilities in Excess of Other Assets | (12.4 | ) | ||
Net Assets | 100.0 | % |
** | Less than 0.05% |
See accompanying Notes to Financial Statements.
77
ADVISORSHARES MEIDELL TACTICAL ADVANTAGE ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
![]() | ![]() | ![]() | |||||||
Investments | Shares/ Principal | Value | |||||||
EXCHANGE TRADED FUNDS — 96.4% | |||||||||
Equity Fund — 96.4% | |||||||||
Deutsche X-trackers MSCI EAFE Hedged Equity ETF(a) | 27,404 | $ | 784,302 | ||||||
iShares Core S&P Mid-Cap ETF | 10,970 | 1,645,281 | |||||||
iShares Core S&P Small-Cap ETF | 13,940 | 1,643,247 | |||||||
iShares Europe ETF | 18,224 | 796,936 | |||||||
iShares S&P 100 ETF(a) | 8,965 | 814,381 | |||||||
iShares S&P Mid-Cap 400 Growth ETF(a) | 9,883 | 1,675,168 | |||||||
iShares S&P Mid-Cap 400 Value ETF(a) | 12,411 | 1,600,523 | |||||||
iShares S&P Small-Cap 600 Growth ETF(a) | 12,929 | 1,693,698 | |||||||
iShares S&P Small-Cap 600 Value ETF | 13,785 | 1,623,322 | |||||||
SPDR S&P International Small Cap ETF(a) | 28,476 | 869,088 | |||||||
Vanguard FTSE All-World ex-US ETF | 32,964 | 1,600,402 | |||||||
Vanguard FTSE Developed Markets ETF | 40,668 | 1,612,486 | |||||||
Total Exchange Traded Funds (Cost $16,064,748) | 16,358,834 | ||||||||
MONEY MARKET FUND — 3.6% | |||||||||
Dreyfus Institutional Reserves Treasury Fund – Institutional Class, 0.00%(b) (Cost $614,679) | 614,679 | 614,679 | |||||||
REPURCHASE AGREEMENTS — 24.3%(c) | |||||||||
Citibank NA, dated 06/30/15, due 07/01/15, 0.14%, total to be received $617,641, (collateralized by various U.S. Government Agency Obligations, 0.63% – 6.50%, 11/15/16 – 07/01/45, totaling $629,992) | $ | 617,639 | 617,639 | ||||||
HSBC Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.10%, total to be received $958,374, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.38%, 07/15/15 – 01/15/37, totaling $977,542) | 958,371 | 958,371 | |||||||
Mizuho Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.14%, total to be received $958,375, (collateralized by various U.S. Government Agency Obligations, 0.00% – 8.50%, 06/13/16 – 04/20/44, totaling $977,538) | 958,371 | 958,371 |
![]() | ![]() | ![]() | ||||||
Investments | Principal | Value | ||||||
REPURCHASE AGREEMENTS (continued) | ||||||||
Morgan Stanley & Co. LLC, dated 06/30/15, due 07/01/15, 0.09%, total to be received $958,373, (collateralized by various U.S. Government Agency Obligations, 0.75% – 9.50%, 02/16/16 – 05/01/45, totaling $977,538) | $ | 958,371 | $ | 958,371 | ||||
RBC Capital Markets LLC, dated 06/30/15, due 07/01/15, 0.10%, total to be received $624,835, (collateralized by various U.S. Government Agency Obligations, 2.38% – 6.50%, 03/01/19 – 02/20/65, totaling $637,330) | 624,833 | 624,833 | ||||||
Total Repurchase Agreements (Cost $4,117,585) | 4,117,585 | |||||||
Total Investments — 124.3% (Cost $20,797,012) | 21,091,098 | |||||||
Liabilities in Excess of Other Assets — (24.3)% | (4,119,347 | ) | ||||||
Net Assets — 100.0% | $ | 16,971,751 |
ETF — Exchange Traded Fund
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $4,026,607; the aggregate market value of the collateral held by the fund is $4,117,585. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2015. |
(c) | Collateral received from brokers for securities lending was invested in these short-term investments. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Equity Fund | 96.4 | % | ||
Money Market Fund | 3.6 | |||
Repurchase Agreements | 24.3 | |||
Total Investments | 124.3 | |||
Liabilities in Excess of Other Assets | (24.3 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
78
ADVISORSHARES MORGAN CREEK GLOBAL TACTICAL ETF†
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
EXCHANGE TRADED FUNDS — 73.0% | |||||||||
Commodity Fund — 2.1% | |||||||||
PowerShares DB Base Metals Fund* | 14,695 | $ | 211,461 | ||||||
Proshares Ultra Bloomberg Crude Oil* | 1,007 | 45,516 | |||||||
Total Commodity Fund | 256,977 | ||||||||
Currency Fund — 4.3% | |||||||||
PowerShares DB US Dollar Index Bullish Fund*(a) | 10,960 | 274,329 | |||||||
ProShares UltraShort Yen* | 2,827 | 260,649 | |||||||
Total Currency Fund | 534,978 | ||||||||
Debt Fund — 5.1% | |||||||||
Direxion Daily 20 Year Plus Treasury Bull 3x Shares* | 9,214 | 632,449 | |||||||
Total Debt Fund | 632,449 | ||||||||
Equity Fund — 61.5% | |||||||||
Energy Select Sector SPDR Fund(a) | 5,820 | 437,431 | |||||||
Global X FTSE Greece 20 ETF | 31,209 | 313,963 | |||||||
Global X FTSE Portugal 20 ETF | 31,134 | 351,503 | |||||||
Health Care Select Sector SPDR Fund | 10,279 | 764,655 | |||||||
iShares China Large-Cap ETF(a) | 15,173 | 699,475 | |||||||
iShares MSCI Italy Capped ETF(a) | 25,016 | 372,488 | |||||||
iShares MSCI Spain Capped ETF(a) | 10,672 | 358,046 | |||||||
iShares Residential Real Estate Capped ETF(a) | 9,377 | 525,862 | |||||||
Market Vectors Gold Miners ETF | 12,130 | 215,429 | |||||||
Market Vectors Russia ETF | 20,975 | 383,423 | |||||||
SPDR S&P Oil & Gas Exploration & Production ETF(a) | 11,735 | 547,555 | |||||||
Technology Select Sector SPDR Fund(a) | 16,574 | 686,164 | |||||||
Vanguard Global ex-U.S. Real Estate ETF | 8,867 | 491,764 | |||||||
WisdomTree India Earnings Fund | 5,744 | 124,472 | |||||||
WisdomTree Japan Hedged Equity Fund | 22,737 | 1,300,556 | |||||||
Total Equity Fund | 7,572,786 | ||||||||
Total Exchange Traded Funds (Cost $9,195,732) | 8,997,190 | ||||||||
CLOSED-END FUND — 5.4% | |||||||||
Country Fund — 5.4% | |||||||||
Morgan Stanley China A Share Fund, Inc. (Cost $512,377) | 19,424 | 658,862 | |||||||
MONEY MARKET FUND — 21.7% | |||||||||
Goldman Sachs Financial Square Fund, 0.04%(b) (Cost $2,672,595) | 2,672,595 | 2,672,595 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
REPURCHASE AGREEMENTS — 15.0%(c) | |||||||||
Citibank NA, dated 06/30/15, due 07/01/15, 0.14%, total to be received $276,314, (collateralized by various U.S. Government Agency Obligations, 0.63% – 6.50%, 11/15/16 – 07/01/45, totaling $281,839) | $ | 276,313 | $ | 276,313 | |||||
HSBC Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.10%, total to be received $428,748, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.38%, 07/15/15 – 01/15/37, totaling $437,324) | 428,747 | 428,747 | |||||||
Mizuho Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.14%, total to be received $428,749, (collateralized by various U.S. Government Agency Obligations, 0.00% – 8.50%, 06/13/16 – 04/20/44, totaling $437,322) | 428,747 | 428,747 | |||||||
Morgan Stanley & Co. LLC, dated 06/30/15, due 07/01/15, 0.09%, total to be received $428,748, (collateralized by various U.S. Government Agency Obligations, 0.75% – 9.50%, 02/16/16 – 05/01/45, totaling $437,322) | 428,747 | 428,747 | |||||||
RBC Capital Markets LLC, dated 06/30/15, due 07/01/15, 0.10%, total to be received $279,531, (collateralized by various U.S. Government Agency Obligations, 2.38% – 6.50%, 03/01/19 – 02/20/65, totaling $285,121) | 279,530 | 279,530 | |||||||
Total Repurchase Agreements (Cost $1,842,084) | 1,842,084 | ||||||||
Total Investments — 115.1% (Cost $14,222,788) | 14,170,731 | ||||||||
Liabilities in Excess of Other Assets — (15.1)% | (1,861,769 | ) | |||||||
Net Assets — 100.0% | $ | 12,308,962 |
ETF — Exchange Traded Fund
† | Formerly known as AdvisorShares Cambria Global Tactical ETF. |
* | Non-income producing security. |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $1,798,342; the aggregate market value of the collateral held by the fund is $1,842,084. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2015. |
(c) | Collateral received from brokers for securities lending was invested in these short-term investments. |
See accompanying Notes to Financial Statements.
79
ADVISORSHARES MORGAN CREEK GLOBAL TACTICAL ETF†
Schedule of Investments (continued)
June 30, 2015
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Commodity Fund | 2.1 | % | ||
Country Fund | 5.4 | |||
Currency Fund | 4.3 | |||
Debt Fund | 5.1 | |||
Equity Fund | 61.5 | |||
Money Market Fund | 21.7 | |||
Repurchase Agreements | 15.0 | |||
Total Investments | 115.1 | |||
Liabilities in Excess of Other Assets | (15.1 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
80
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
MORTGAGE BACKED SECURITIES — 29.4% | |||||||||
Commercial Mortgage Backed Securities — 18.8% | |||||||||
A10 Term Asset Financing LLC, Class A1, Series 2014-1, 1.72%, 04/15/33‡ | $ | 250,000 | $ | 249,531 | |||||
BAMLL-DB Trust, Class A2FX, Series 2012-OSI, 3.35%, 04/13/29‡ | 274,872 | 281,388 | |||||||
Banc of America Commercial Mortgage Trust, Class A4, Series 2007-2, 5.61%, 04/10/49@ | 1,084,000 | 1,135,386 | |||||||
Banc of America Merrill Lynch Commercial Mortgage, Inc., Class G, Series 2005-2, 5.02%, 07/10/43@‡ | 1,360,000 | 1,358,755 | |||||||
Bayview Commercial Asset Trust, Class A3, Series 2008-1, 1.69%, 01/25/38@‡ | 300,000 | 289,580 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2005-PW10, 5.45%, 12/11/40@ | 571,000 | 579,747 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2006-PW13, 5.58%, 09/11/41@ | 885,000 | 922,734 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2007-PW15, 5.36%, 02/11/44 | 265,000 | 274,425 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2007-PW17, 5.89%, 06/11/50@ | 990,000 | 1,070,960 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2007-PW18, 5.70%, 06/11/50 | 970,000 | 1,038,356 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2007-PW17, 5.69%, 06/11/50@ | 650,000 | 693,550 | |||||||
Capital Auto Receivables Asset Trust, Class C, Series 2013-1, 1.74%, 10/22/18 | 415,000 | 416,278 | |||||||
CD Commercial Mortgage Trust, Class AMFX, Series 2007-CD4, 5.37%, 12/11/49@ | 895,000 | 929,541 | |||||||
CD Commercial Mortgage Trust, Class A4, Series 2007-CD4, 5.32%, 12/11/49 | 780,000 | 813,299 | |||||||
Citigroup Commercial Mortgage Trust, Class AM, Series 2008-C7, 6.14%, 12/10/49@ | 530,000 | 574,047 | |||||||
Citigroup Commercial Mortgage Trust, Class A4, Series 2007-C6, 5.71%, 12/10/49@ | 140,000 | 149,876 | |||||||
Citigroup Commercial Mortgage Trust, Class A1A, Series 2007-C6, 5.71%, 12/10/49@ | 1,410,413 | 1,508,337 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
MORTGAGE BACKED SECURITIES (continued) | |||||||||
Commercial Mortgage Backed Securities (continued) | |||||||||
Citigroup Commercial Mortgage Trust, Class MLSR, Series 2010-RR3, 5.74%, 06/14/50@‡ | $ | 330,607 | $ | 348,733 | |||||
Colony Multifamily Mortgage Trust, Class A, Series 2014-1, 2.54%, 04/20/50‡ | 780,897 | 781,767 | |||||||
Commercial Mortgage Trust, Class AM, Series 2007-GG11, 5.87%, 12/10/49@ | 510,000 | 547,692 | |||||||
Credit Suisse Commercial Mortgage Trust, Class A1A, Series 2007-C1, 5.36%, 02/15/40 | 478,769 | 500,933 | |||||||
Credit Suisse Commercial Mortgage Trust, Class 1A, Series 2010-RR7, 5.38%, 08/12/48@‡ | 469,282 | 487,403 | |||||||
DBUBS Mortgage Trust, Class A2, Series 2011-LC3A, 3.64%, 08/10/44 | 978,471 | 996,313 | |||||||
Extended Stay America Trust, Class A17, Series 2013-ESH7, 2.30%, 12/05/31‡ | 735,000 | 728,826 | |||||||
GMACM Mortgage Loan Trust, Class A10, Series 2003-J7, 5.50%, 11/25/33 | 788,258 | 811,084 | |||||||
GMACM Mortgage Loan Trust, Class 12A, Series 2004-AR1, 3.03%, 06/25/34@ | 629,638 | 642,146 | |||||||
GS Mortgage Securities Trust, Class A4, Series 2007-GG10, 5.79%, 08/10/45@ | 897,857 | 958,939 | |||||||
GS Mortgage Securities Trust, Class A1A, Series 2007-GG10, 5.79%, 08/10/45@ | 536,107 | 576,001 | |||||||
Hilton USA Trust, Class EFX, Series 2013-HLT, 4.45%, 11/05/30@‡ | 535,000 | 543,905 | |||||||
Irwin Home Equity Loan Trust, Class M1, Series 2003-A, 1.74%, 10/25/27@ | 437,357 | 433,850 | |||||||
JPMorgan Chase Commercial Mortgage Securities Trust, Class AM, Series 2006-LDP7, 5.90%, 04/15/45@ | 1,190,000 | 1,233,734 | |||||||
JPMorgan Chase Commercial Mortgage Securities Trust, Class A4, Series 2006-LDP7, 5.90%, 04/15/45@ | 183,205 | 187,484 | |||||||
JPMorgan Chase Commercial Mortgage Securities Trust, Class A3, Series 2006-LDP9, 5.34%, 05/15/47 | 2,391,591 | 2,498,868 | |||||||
JPMorgan Chase Commercial Mortgage Securities Trust, Class AM, Series 2006-LDP9, 5.37%, 05/15/47 | 650,000 | 672,312 |
See accompanying Notes to Financial Statements.
81
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
MORTGAGE BACKED SECURITIES (continued) | |||||||||
Commercial Mortgage Backed Securities (continued) | |||||||||
JPMorgan Chase Commercial Mortgage Securities Trust, Class AM, Series 2007-LDPX, 5.46%, 01/15/49@ | $ | 275,000 | $ | 284,677 | |||||
JPMorgan Chase Commercial Mortgage Securities Trust, Class A4, Series 2007-LD12, 5.88%, 02/15/51@ | 2,255,000 | 2,400,427 | |||||||
JPMorgan Mortgage Trust, Class 1A1, Series 2004-A3, 2.39%, 07/25/34@ | 362,241 | 364,068 | |||||||
LB Commercial Mortgage Trust, Class A4, Series 2007-C3, 5.90%, 07/15/44@ | 601,947 | 644,282 | |||||||
LB-UBS Commercial Mortgage Trust, Class A3, Series 2007-C2, 5.43%, 02/15/40 | 407,559 | 430,854 | |||||||
LB-UBS Commercial Mortgage Trust, Class A4, Series 2007-C6, 5.86%, 07/15/40@ | 1,250,962 | 1,319,131 | |||||||
LB-UBS Commercial Mortgage Trust, Class A3, Series 2007-C7, 5.87%, 09/15/45@ | 676,807 | 733,028 | |||||||
Morgan Stanley Capital I Trust, Class AM, Series 2008-T29, 6.27%, 01/11/43@ | 860,000 | 953,156 | |||||||
Morgan Stanley Capital I Trust, Class A4, Series 2006-IQ12, 5.33%, 12/15/43 | 451,762 | 470,223 | |||||||
Morgan Stanley Capital I Trust, Class A4, Series 2007-IQ14, 5.69%, 04/15/49@ | 800,000 | 846,863 | |||||||
Morgan Stanley Capital I Trust, Class AM, Series 2007-IQ14, 5.68%, 04/15/49@ | 226,000 | 235,847 | |||||||
Morgan Stanley Capital I Trust, Class A4, Series 2007-IQ16, 5.81%, 12/12/49 | 410,733 | 441,265 | |||||||
Vericrest Opportunity Loan Trust, Class A1, Series 2014-NPL9, 3.38%, 11/25/54‡# | 268,803 | 269,224 | |||||||
Vericrest Opportunity Loan Trust, Class A1, Series 2015-NPL3, 3.38%, 10/25/58‡# | 392,813 | 393,049 | |||||||
VFC LLC, Class A, Series 2014-2, 2.75%, 07/20/30‡ | 148,285 | 148,303 | |||||||
VOLT XXII LLC, Class A1, Series 2015-NPL4, 3.50%, 02/25/55‡# | 300,045 | 300,388 | |||||||
VOLT XXXI LLC, Class A1, Series 2015-NPL2, 3.38%, 02/25/55‡# | 425,625 | 425,559 | |||||||
Wachovia Bank Commercial Mortgage Trust, Class AM, Series 2007-C30, 5.38%, 12/15/43 | 870,000 | 915,034 | |||||||
Wachovia Bank Commercial Mortgage Trust, Class A4, Series 2007-C31, 5.51%, 04/15/47 | 770,000 | 806,540 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
MORTGAGE BACKED SECURITIES (continued) | |||||||||
Commercial Mortgage Backed Securities (continued) | |||||||||
Wachovia Bank Commercial Mortgage Trust, Class AM, Series 2007-C31, 5.59%, 04/15/47@ | $ | 1,380,000 | $ | 1,465,480 | |||||
Wachovia Bank Commercial Mortgage Trust, Class A3, Series 2007-C32, 5.71%, 06/15/49@ | 975,000 | 1,032,115 | |||||||
Washington Mutual MSC Mortgage Pass-Through Certificates Trust, Class 2A1, Series 2003-AR4, 2.26%, 08/25/33@ | 216,333 | 215,228 | |||||||
Total Commercial Mortgage Backed Securities | 40,330,521 | ||||||||
Non-Agency Mortgage-Backed Securities — 1.6% | |||||||||
Access Point Funding LLC, Class A, Series 2015-A, 2.61%, 04/15/20‡ | 248,237 | 248,212 | |||||||
Alternative Loan Trust, Class 1A1, Series 2004-22CB, 6.00%, 10/25/34 | 188,339 | 201,015 | |||||||
Bcrr Trust, Class 2A1, Series 2009-1, 5.86%, 07/17/40@‡ | 158,942 | 163,877 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2006-PW14, 5.24%, 12/11/38 | 285,000 | 299,224 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2007-PW18, 6.08%, 06/11/50@ | 460,000 | 502,699 | |||||||
Leaf Receivables Funding 10 LLC, Class D, Series 2015-1, 3.74%, 05/17/21‡ | 615,000 | 607,860 | |||||||
OneMain Financial Issuance Trust, Class A, Series 2015-2A, 2.57%, 07/18/25‡ | 325,000 | 325,247 | |||||||
Welk Resorts LLC, Class A, Series 2015-AA, 2.79%, 06/16/31‡ | 650,000 | 650,631 | |||||||
Wendys Funding LLC, Class A2II, Series 2015-1A, 4.08%, 06/15/45‡ | 535,000 | 530,934 | |||||||
Total Non-Agency Mortgage-Backed Securities | 3,529,699 | ||||||||
Residential Mortgage Backed Securities — 9.0% | |||||||||
B2R Mortgage Trust, Class A1, Series 2015-1, 2.52%, 05/15/48‡ | 229,058 | 228,304 | |||||||
Banc of America Funding Trust, Class 5A1, Series 2004-A, 2.50%, 07/20/34@ | 182,482 | 182,125 | |||||||
Banc of America Mortgage Trust, Class 6A3, Series 2004-7, 4.50%, 08/25/19 | 678,482 | 671,382 |
See accompanying Notes to Financial Statements.
82
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
MORTGAGE BACKED SECURITIES (continued) | |||||||||
Residential Mortgage Backed Securities (continued) | |||||||||
Bayview Financial Mortgage Pass-Through Trust, Class 1A2, Series 2006-A, 5.48%, 02/28/41# | $ | 285,620 | $ | 299,691 | |||||
Bear Stearns ARM Trust, Class 21A1, Series 2004-1, 2.26%, 04/25/34@ | 807,099 | 799,407 | |||||||
Bear Stearns ARM Trust, Class 12A3, Series 2004-10, 2.73%, 01/25/35@ | 416,404 | 413,962 | |||||||
Bear Stearns ARM Trust, Class 15A1, Series 2004-10, 2.63%, 01/25/35@ | 1,260,839 | 1,258,562 | |||||||
Citigroup Mortgage Loan Trust, Class A, Series 2014-A, 4.00%, 01/25/35@‡ | 154,715 | 161,705 | |||||||
Citigroup Mortgage Loan Trust, Inc., Class A2, Series 2003-UP3, 7.00%, 09/25/33 | 232,816 | 246,685 | |||||||
Citigroup Mortgage Loan Trust, Inc., Class A3, Series 2004-UST1, 2.18%, 08/25/34@ | 375,500 | 376,442 | |||||||
Citigroup Mortgage Loan Trust, Inc., Class A1, Series 2015-A, 3.50%, 06/25/58@ | 506,366 | 510,198 | |||||||
Credit Suisse First Boston Mortgage Securities Corp., Class 6A1, Series 2004-8, 4.50%, 12/25/19 | 129,527 | 131,692 | |||||||
Credit Suisse First Boston Mortgage Securities Corp., Class 6A1, Series 2004-AR8, 2.37%, 09/25/34@ | 229,271 | 228,635 | |||||||
GSR Mortgage Loan Trust, Class 3A1, Series 2004-7, 2.29%, 06/25/34@ | 819,289 | 798,263 | |||||||
GSR Mortgage Loan Trust, Class 2A2, Series 2007-1F, 5.50%, 01/25/37 | 29,997 | 28,787 | |||||||
JPMorgan Mortgage Trust, Class 4A1, Series 2006-A2, 2.64%, 08/25/34@ | 377,794 | 379,337 | |||||||
JPMorgan Mortgage Trust, Class 4A1, Series 2005-A2, 2.14%, 04/25/35@ | 819,676 | 803,558 | |||||||
JPMorgan Mortgage Trust, Class 1A1, Series 2014-1, 4.00%, 01/25/44@‡ | 413,793 | 433,131 | |||||||
MASTR Alternative Loan Trust, Class 6A1, Series 2004-4, 5.50%, 04/25/34 | 489,341 | 517,504 | |||||||
MASTR Asset Securitization Trust, Class 1A1, Series 2005-1, 5.00%, 05/25/20 | 332,481 | 336,212 | |||||||
Merrill Lynch Mortgage Trust, Class AM, Series 2006-C1, 5.68%, 05/12/39@ | 660,000 | 678,555 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
MORTGAGE BACKED SECURITIES (continued) | |||||||||
Residential Mortgage Backed Securities (continued) | |||||||||
Morgan Stanley Residential Mortgage Loan Trust, Class A1, Series 2014-1A, 2.99%, 06/25/44@‡ | $ | 295,434 | $ | 302,980 | |||||
National City Mortgage Capital Trust, Class 2A1, Series 2008-1, 6.00%, 03/25/38 | 340,362 | 358,884 | |||||||
New Residential Mortgage Loan Trust, Class A3, Series 2014-2A, 3.75%, 05/25/54@‡ | 282,294 | 293,101 | |||||||
New Residential Mortgage Loan Trust, Class AFX3, Series 2014-3A, 3.75%, 11/25/54@‡ | 681,589 | 701,958 | |||||||
RALI Series Trust, Class CB5, Series 2003-QS17, 5.50%, 09/25/33 | 421,124 | 436,391 | |||||||
RALI Series Trust, Class A3, Series 2003-QS22, 5.38%, 12/26/33 | 97,294 | 98,394 | |||||||
RASC Series Trust, Class AI6, Series 2004-KS2, 4.30%, 03/25/34@ | 144,200 | 146,101 | |||||||
Structured Adjustable Rate Mortgage Loan Trust, Class 6A, Series 2004-1, 2.64%, 02/25/34@ | 490,676 | 481,207 | |||||||
Structured Adjustable Rate Mortgage Loan Trust, Class 3A2, Series 2004-4, 2.64%, 04/25/34@ | 970,757 | 972,642 | |||||||
Structured Adjustable Rate Mortgage Loan Trust, Class 3A1, Series 2004-4, 2.48%, 04/25/34@ | 182,283 | 180,913 | |||||||
Structured Adjustable Rate Mortgage Loan Trust, Class 3A2, Series 2004-5, 2.44%, 05/25/34@ | 427,209 | 426,209 | |||||||
Structured Asset Securities Corp., Class 2A, Series 2003-37A, 3.77%, 12/25/33@ | 329,065 | 330,316 | |||||||
Structured Asset Securities Corp. Mortgage Pass-Through Certificates, Class 1A1, Series 2003-33H, 5.50%, 10/25/33 | 473,835 | 485,687 | |||||||
Structured Asset Securities Corp. Mortgage Pass-Through Certificates, Class 6A, Series 2003-34A, 2.58%, 11/25/33@ | 341,978 | 336,147 | |||||||
Structured Asset Securities Corp. Pass-Through Certificates, Class A3, Series 2002-AL1, 3.45%, 02/25/32 | 1,128,046 | 1,117,768 | |||||||
WaMu Mortgage Pass-Through Certificates, Class A1, Series 2003-AR6, 2.56%, 06/25/33@ | 247,603 | 248,429 |
See accompanying Notes to Financial Statements.
83
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
MORTGAGE BACKED SECURITIES (continued) | |||||||||
Residential Mortgage Backed Securities (continued) | |||||||||
Wells Fargo Mortgage Backed Securities Trust, Class 5A1, Series 2003-J, 2.49%, 10/25/33@ | $ | 217,328 | $ | 219,633 | |||||
Wells Fargo Mortgage Backed Securities Trust, Class A1, Series 2004-A, 2.64%, 02/25/34@ | 267,619 | 268,432 | |||||||
Wells Fargo Mortgage Backed Securities Trust, Class 2A12, Series 2004-K, 2.73%, 07/25/34@ | 185,717 | 187,241 | |||||||
Wells Fargo Mortgage Backed Securities Trust, Class 1A2, Series 2004-K, 2.74%, 07/25/34@ | 522,933 | 525,356 | |||||||
Wells Fargo Mortgage Backed Securities Trust, Class 2A1, Series 2004-Z, 2.61%, 12/25/34@ | 221,975 | 223,584 | |||||||
Wells Fargo Mortgage Backed Securities Trust, Class 2A1, Series 2005-14, 5.50%, 12/25/35 | 173,004 | 176,832 | |||||||
WinWater Mortgage Loan Trust, Class A1, Series 2014-1, 4.00%, 06/20/44@‡ | 623,498 | 643,211 | |||||||
WinWater Mortgage Loan Trust, Class A4, Series 2014-3, 3.50%, 11/20/44@‡ | 703,077 | 708,844 | |||||||
Total Residential Mortgage Backed Securities | 19,354,397 | ||||||||
Total Mortgage Backed Securities (Cost $64,777,815) | 63,214,617 | ||||||||
ASSET BACKED SECURITIES — 26.4% | |||||||||
American Homes 4 Rent, Class A, Series 2014-SFR1, 1.25%, 06/17/31@‡ | 275,002 | 274,626 | |||||||
AmeriCredit Automobile Receivables Trust, Class C, Series 2014-2, 2.18%, 06/08/20 | 500,000 | 500,386 | |||||||
AmeriCredit Automobile Receivables Trust, Class D, Series 2011-2, 4.00%, 05/08/17 | 871,872 | 874,515 | |||||||
AmeriCredit Automobile Receivables Trust, Class D, Series 2012-4, 2.68%, 10/09/18 | 1,050,000 | 1,069,869 | |||||||
AmeriCredit Automobile Receivables Trust, Class D, Series 2013-2, 2.42%, 05/08/19 | 575,000 | 579,257 | |||||||
AmeriCredit Automobile Receivables Trust, Class D, Series 2014-1, 2.54%, 06/08/20 | 755,000 | 752,948 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
ASSET BACKED SECURITIES (continued) | |||||||||
Ascentium Equipment Receivables LLC, Class B, Series 2015-1A, 2.26%, 06/10/21‡ | $ | 600,000 | $ | 603,511 | |||||
Asset Backed Funding Certificates Trust, Class A6, Series 2005-AQ1, 4.78%, 06/25/35# | 398,994 | 411,752 | |||||||
Associates Manufactured Housing Pass-Through Certificates, Class B1, Series 1996-1, 8.00%, 03/15/27@ | 285,544 | 311,267 | |||||||
Avis Budget Rental Car Funding AESOP LLC, Class A, Series 2012-3A, 2.10%, 03/20/19‡ | 500,000 | 503,754 | |||||||
Avis Budget Rental Car Funding AESOP LLC, Class A, Series 2013-1A, 1.92%, 09/20/19‡ | 1,140,000 | 1,137,198 | |||||||
Avis Budget Rental Car Funding AESOP LLC, Class A, Series 2013-2A, 2.97%, 02/20/20‡ | 1,465,000 | 1,505,700 | |||||||
Banc of America Funding Trust, Class 1A1, Series 2005-1, 5.50%, 02/25/35 | 278,320 | 283,739 | |||||||
BankAmerica Manufactured Housing Contract Trust, Class B1, Series 1998-1, 7.81%, 08/10/25@ | 284,170 | 298,773 | |||||||
Bayview Financial Acquisition Trust, Class 1A2, Series 2007-A, 6.21%, 05/28/37# | 573,793 | 617,181 | |||||||
Beacon Container Finance LLC, Class A, Series 2012-1A, 3.72%, 09/20/27‡ | 642,598 | 654,313 | |||||||
BXG Receivables Note Trust, Class A, Series 2015-A, 2.88%, 05/02/30‡ | 555,042 | 553,987 | |||||||
California Republic Auto Receivables Trust, Class A4, Series 2014-3, 1.79%, 03/16/20 | 645,000 | 649,833 | |||||||
California Republic Auto Receivables Trust, Class B, Series 2014-2, 2.34%, 04/15/20 | 500,000 | 500,358 | |||||||
Capital Auto Receivables Asset Trust, Class C, Series 2013-4, 2.67%, 02/20/19 | 635,000 | 641,925 | |||||||
Capital Auto Receivables Asset Trust, Class C, Series 2015-2, 2.67%, 08/20/20 | 650,000 | 650,316 | |||||||
CarFinance Capital Auto Trust, Class B, Series 2013-2A, 3.15%, 08/15/19‡ | 350,000 | 355,703 | |||||||
CarFinance Capital Auto Trust, Class B, Series 2014-1A, 2.72%, 04/15/20‡ | 200,000 | 201,765 |
See accompanying Notes to Financial Statements.
84
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
ASSET BACKED SECURITIES (continued) | |||||||||
CarFinance Capital Auto Trust, Class B, Series 2014-2A, 2.64%, 11/16/20‡ | $ | 480,000 | $ | 480,186 | |||||
CarFinance Capital Auto Trust, Class B, Series 2015-1A, 2.91%, 06/15/21‡ | 1,000,000 | 1,003,020 | |||||||
CarFinance Capital Auto Trust, Class D, Series 2014-1A, 4.90%, 04/15/20‡ | 415,000 | 422,275 | |||||||
CarMax Auto Owner Trust, Class B, Series 2014-4, 2.20%, 09/15/20 | 700,000 | 704,447 | |||||||
CarMax Auto Owner Trust, Class C, Series 2014-2, 2.08%, 01/15/20 | 425,000 | 426,267 | |||||||
CarMax Auto Owner Trust, Class C, Series 2015-2, 2.39%, 03/15/21 | 615,000 | 615,992 | |||||||
Carnow Auto Receivables Trust, Class D, Series 2014-1A, 4.16%, 11/15/18‡ | 400,000 | 398,913 | |||||||
CCG Receivables Trust, Class B, Series 2014-1, 2.15%, 11/15/21‡ | 420,000 | 422,445 | |||||||
Centex Home Equity Loan Trust, Class AF5, Series 2004-D, 5.35%, 09/25/34# | 438,000 | 464,539 | |||||||
Centre Point Funding LLC, Class 1, Series 2012-2A, 2.61%, 08/20/21‡ | 773,095 | 771,523 | |||||||
Citicorp Residential Mortgage Trust, Class A4, Series 2006-1, 5.76%, 07/25/36# | 473,967 | 491,741 | |||||||
Citicorp Residential Mortgage Trust, Class A6, Series 2007-2, 5.52%, 06/25/37# | 420,688 | 438,355 | |||||||
CKE Restaurant Holdings, Inc., Class A2, Series 2013-1A, 4.47%, 03/20/43‡ | 372,006 | 378,253 | |||||||
CLI Funding V LLC, Class A, Series 2014-2A, 3.38%, 10/18/29‡ | 933,333 | 939,274 | |||||||
Conseco Financial Corp., Class B1, Series 1995-5, 7.30%, 09/15/26@ | 402,713 | 424,901 | |||||||
Countrywide Asset-Backed Certificates, Class A3, Series 2004-S1, 5.12%, 02/25/35# | 722,357 | 738,209 | |||||||
Domino’s Pizza Master Issuer LLC, Class A2, Series 2012-1A, 5.22%, 01/25/42‡ | 308,234 | 318,524 | |||||||
Drive Auto Receivables Trust, Class C, Series 2015-AA, 3.06%, 05/17/21‡ | 590,000 | 594,031 | |||||||
Drug Royalty II LP 2, Class A2, Series 2014-1, 3.48%, 07/15/23‡ | 408,009 | 414,011 | |||||||
DT Auto Owner Trust, Class C, Series 2013-2A, 3.06%, 09/16/19‡ | 500,000 | 505,046 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
ASSET BACKED SECURITIES (continued) | |||||||||
DT Auto Owner Trust, Class C, Series 2014-1A, 2.64%, 10/15/19‡ | $ | 670,000 | $ | 674,787 | |||||
DT Auto Owner Trust, Class C, Series 2014-2A, 2.46%, 01/15/20‡ | 300,000 | 300,991 | |||||||
DT Auto Owner Trust, Class C, Series 2014-3A, 3.04%, 09/15/20‡ | 560,000 | 565,294 | |||||||
Exeter Automobile Receivables Trust, Class B, Series 2013-2A, 3.09%, 07/16/18‡ | 180,000 | 181,991 | |||||||
Exeter Automobile Receivables Trust, Class C, Series 2013-1A, 3.52%, 02/15/19‡ | 500,000 | 508,608 | |||||||
Exeter Automobile Receivables Trust, Class C, Series 2014-1A, 3.57%, 07/15/19‡ | 1,110,000 | 1,122,382 | |||||||
Exeter Automobile Receivables Trust, Class C, Series 2014-2A, 3.26%, 12/16/19‡ | 880,000 | 876,374 | |||||||
Exeter Automobile Receivables Trust, Class C, Series 2015-1A, 4.10%, 12/15/20‡ | 500,000 | 504,862 | |||||||
Exeter Automobile Receivables Trust, Class C, Series 2015-2A, 3.90%, 03/15/21‡ | 500,000 | 501,980 | |||||||
FDIC Trust, Class A, Series 2013-N1, 4.50%, 10/25/18‡ | 181,941 | 183,029 | |||||||
Federal Home Loan Mortgage Corporation, Class M2, Series 2014-DN2, 1.84%, 04/25/24@ | 500,000 | 488,713 | |||||||
Foursight Capital Automobile Receivables Trust, Class B, Series 2014-1, 3.56%, 11/22/21‡ | 500,000 | 504,550 | |||||||
Gold Key Resorts LLC, Class A, Series 2014-A, 3.22%, 03/17/31‡ | 499,426 | 501,934 | |||||||
GSAA Trust, Class AF4, Series 2005-1, 5.62%, 11/25/34# | 207,273 | 220,373 | |||||||
Hilton Grand Vacations Trust, Class A, Series 2013-A, 2.28%, 01/25/26‡ | 1,036,622 | 1,043,058 | |||||||
Hilton Grand Vacations Trust, Class A, Series 2014-AA, 1.77%, 11/25/26‡ | 339,920 | 337,431 | |||||||
Hyundai Auto Receivables Trust, Class D, Series 2014-B, 2.51%, 12/15/20 | 425,000 | 428,358 | |||||||
Hyundai Auto Receivables Trust, Class D, Series 2015-A, 2.73%, 06/15/21 | 500,000 | 505,955 | |||||||
Jefferies Resecuritization Trust, Class 1A1, Series 2014-R1, 4.00%, 12/27/37‡ | 660,411 | 662,747 | |||||||
JPMorgan Mortgage Trust, Class 2A1, Series 2014-IVR3, 3.00%, 09/25/44@‡ | 667,429 | 672,741 |
See accompanying Notes to Financial Statements.
85
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
ASSET BACKED SECURITIES (continued) | |||||||||
JPMorgan Mortgage Trust, Class 2A2, Series 2014-2, 3.50%, 06/25/29@‡ | $ | 261,679 | $ | 270,528 | |||||
LEAF Receivables Funding 9 LLC, Class D, Series 2013-1, 5.11%, 09/15/21‡ | 345,000 | 357,834 | |||||||
Marriott Vacation Club Owner Trust, Class A, Series 2012-1A, 2.51%, 05/20/30‡ | 1,011,224 | 1,022,484 | |||||||
MASTR Asset Securitization Trust, Class 4A5, Series 2003-5, 5.50%, 06/25/33 | 613,407 | 622,837 | |||||||
MASTR Specialized Loan Trust, Class A2, Series 2005-3, 5.70%, 11/25/35‡# | 449,764 | 468,584 | |||||||
Mid-State Trust, Class A4, Series 1997-6, 7.79%, 07/01/35 | 384,517 | 412,736 | |||||||
New Residential Mortgage Loan Trust, Class A, Series 2014-1A, 3.75%, 01/25/54@‡ | 179,414 | 185,434 | |||||||
OneMain Financial Issuance Trust, Class A, Series 2014-1A, 2.43%, 06/18/24‡ | 730,000 | 734,403 | |||||||
Residential Funding Mortgage Securities II Home Equity Loan Trust, Class AIIB, Series 2003-HS2, 0.44%, 06/25/28@ | 133,755 | 126,803 | |||||||
Santander Drive Auto Receivables Trust, Class C, Series 2012-3, 3.01%, 04/16/18 | 210,913 | 212,544 | |||||||
Santander Drive Auto Receivables Trust, Class C, Series 2012-4, 2.94%, 12/15/17 | 349,513 | 352,966 | |||||||
Santander Drive Auto Receivables Trust, Class C, Series 2013-3, 1.81%, 04/15/19 | 600,000 | 603,050 | |||||||
Santander Drive Auto Receivables Trust, Class C, Series 2014-3, 2.13%, 08/17/20 | 600,000 | 605,366 | |||||||
Santander Drive Auto Receivables Trust, Class D, Series 2012-2, 3.87%, 02/15/18 | 300,000 | 306,924 | |||||||
Santander Drive Auto Receivables Trust, Class D, Series 2012-6, 2.52%, 09/17/18 | 350,000 | 351,907 | |||||||
Santander Drive Auto Receivables Trust, Class D, Series 2013-1, 2.27%, 01/15/19 | 500,000 | 498,533 | |||||||
Santander Drive Auto Receivables Trust, Class D, Series 2013-5, 2.73%, 10/15/19 | 475,000 | 479,250 | |||||||
Santander Drive Auto Receivables Trust, Class D, Series 2014-4, 3.10%, 11/16/20 | 600,000 | 604,904 | |||||||
Sierra Timeshare Receivables Funding LLC, Class A, Series 2014-1A, 2.07%, 03/20/30‡ | 264,323 | 265,761 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
ASSET BACKED SECURITIES (continued) | |||||||||
Sierra Timeshare Receivables Funding LLC, Class A, Series 2014-2A, 2.05%, 06/20/31‡ | $ | 179,658 | $ | 180,961 | |||||
Sierra Timeshare Receivables Funding LLC, Class B, Series 2012-2A, 3.42%, 03/20/29‡ | 173,408 | 175,795 | |||||||
Silverleaf Finance XV LLC, Class A, Series 2012-D, 3.00%, 03/17/25‡ | 172,612 | 174,508 | |||||||
Silverleaf Finance XVIII LLC, Class A, Series 2014-A, 2.81%, 01/15/27‡ | 714,545 | 714,116 | |||||||
SLM Private Education Loan Trust, Class A2A, Series 2013-B, 1.85%, 06/17/30‡ | 500,000 | 496,413 | |||||||
SLM Private Education Loan Trust, Class A2A, Series 2013-C, 2.94%, 10/15/31‡ | 270,000 | 278,265 | |||||||
SLM Private Education Loan Trust, Class A2A, Series 2014-A, 2.59%, 01/15/26‡ | 1,275,000 | 1,296,424 | |||||||
SNAAC Auto Receivables Trust, Class C, Series 2014-1A, 2.21%, 01/15/20‡ | 330,000 | 330,989 | |||||||
SoFi Professional Loan Program LLC, Class A2, Series 2014-A, 3.02%, 10/25/27‡ | 288,134 | 294,182 | |||||||
SoFi Professional Loan Program LLC, Class A2, Series 2014-B, 2.55%, 08/27/29‡ | 824,614 | 828,580 | |||||||
SoFi Professional Loan Program LLC, Class A2, Series 2015-A, 2.42%, 03/25/30‡ | 443,877 | 444,421 | |||||||
Structured Asset Securities Corp., Class A3A, Series 2004-4XS, 5.00%, 02/25/34# | 647,681 | 688,126 | |||||||
Structured Asset Securities Corp. Assistance Loan Trust, Class A, Series 2003-AL1, 3.36%, 04/25/31‡ | 1,327,487 | 1,310,145 | |||||||
Structured Asset Securities Corp. Mortgage Pass-Through Certificates, Class 3A3, Series 2004-15, 5.50%, 09/25/34 | 299,327 | 304,537 | |||||||
TAL Advantage V LLC, Class A, Series 2013-1A, 2.83%, 02/22/38‡ | 421,667 | 419,968 | |||||||
TAL Advantage V LLC, Class A, Series 2014-3A, 3.27%, 11/21/39‡ | 470,833 | 475,256 | |||||||
TCF Auto Receivables Owner Trust, Class B, Series 2014-1A, 2.33%, 05/15/20‡ | 800,000 | 804,979 | |||||||
Tidewater Auto Receivables Trust, Class C, Series 2014-AA, 2.56%, 08/15/19‡ | 500,000 | 501,427 | |||||||
Trip Rail Master Funding LLC, Class A1, Series 2014-1A, 2.86%, 04/15/44‡ | 273,318 | 273,040 |
See accompanying Notes to Financial Statements.
86
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
ASSET BACKED SECURITIES (continued) | |||||||||
Trip Rail Master Funding LLC, Class A1A, Series 2011-1A, 4.37%, 07/15/41‡ | $ | 334,436 | $ | 344,767 | |||||
U-Haul S Fleet LLC, Class 1, Series 2010-BT1A, 4.90%, 10/25/23‡ | 600,411 | 625,304 | |||||||
Wachovia Bank Commercial Mortgage Trust, Class A5, Series 2007-C30, 5.34%, 12/15/43 | 90,000 | 94,610 | |||||||
Wells Fargo Mortgage Backed Securities Trust, Class A1, Series 2003-G, 2.52%, 06/25/33@ | 33,785 | 34,150 | |||||||
Wells Fargo Mortgage Backed Securities Trust, Class A1, Series 2004-U, 2.60%, 10/25/34@ | 537,337 | 536,890 | |||||||
Westgate Resorts LLC, Class A, Series 2012-2A, 3.00%, 01/20/25‡ | 199,488 | 200,211 | |||||||
Westlake Automobile Receivables Trust, Class C, Series 2014-1A, 1.70%, 11/15/19‡ | 500,000 | 498,913 | |||||||
Westlake Automobile Receivables Trust, Class C, Series 2015-1A, 2.29%, 11/16/20‡ | 500,000 | 499,893 | |||||||
Total Asset Backed Securities (Cost $56,890,093) | 56,980,504 | ||||||||
CORPORATE BONDS — 18.8% | |||||||||
Consumer Discretionary — 2.0% | |||||||||
American Axle & Manufacturing, Inc., 5.13%, 02/15/19 | 115,000 | 118,019 | |||||||
CCO Holdings LLC/CCO Holdings Capital Corp., 5.25%, 03/15/21 | 80,000 | 80,000 | |||||||
CCO Holdings LLC/CCO Holdings Capital Corp., 5.25%, 09/30/22 | 85,000 | 83,938 | |||||||
D.R. Horton, Inc., 4.00%, 02/15/20 | 160,000 | 159,952 | |||||||
Dish DBS Corp., 4.63%, 07/15/17 | 230,000 | 237,474 | |||||||
GLP Capital LP/GLP Financing II, Inc., 4.88%, 11/01/20 | 530,000 | 541,925 | |||||||
Lennar Corp., 4.50%, 11/15/19 | 305,000 | 310,338 | |||||||
Marriott International, Inc., Series N, 3.13%, 10/15/21 | 520,000 | 520,229 | |||||||
QVC, Inc., 3.13%, 04/01/19 | 505,000 | 502,044 | |||||||
Time Warner Cable, Inc., 6.75%, 07/01/18 | 205,000 | 228,722 | |||||||
Toll Brothers Finance Corp., 4.00%, 12/31/18 | 375,000 | 383,437 | |||||||
Toll Brothers Finance Corp., 6.75%, 11/01/19 | 117,000 | 130,455 | |||||||
TRI Pointe Holdings, Inc., 4.38%, 06/15/19 | 355,000 | 349,675 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
CORPORATE BONDS (continued) | |||||||||
Consumer Discretionary (continued) | |||||||||
Wyndham Worldwide Corp., 2.50%, 03/01/18 | $ | 450,000 | $ | 451,437 | |||||
Total Consumer Discretionary | 4,097,645 | ||||||||
Consumer Staples — 0.1% | |||||||||
HJ Heinz Co., 2.80%, 07/02/20‡ | 185,000 | 185,355 | |||||||
Energy — 0.8% | |||||||||
Antero Resources Corp., 5.63%, 06/01/23‡(a) | 210,000 | 203,963 | |||||||
California Resources Corp., 5.00%, 01/15/20(a) | 210,000 | 185,850 | |||||||
Kinder Morgan, Inc., 3.05%, 12/01/19 | 100,000 | 99,992 | |||||||
Kinder Morgan, Inc., 5.63%, 11/15/23‡ | 445,000 | 474,136 | |||||||
Newfield Exploration Co., 5.75%, 01/30/22 | 140,000 | 142,800 | |||||||
NGL Energy Partners LP/NGL Energy Finance Corp., 5.13%, 07/15/19 | 335,000 | 335,838 | |||||||
Parker Drilling Co., 6.75%, 07/15/22 | 100,000 | 86,750 | |||||||
Sabine Oil & Gas Corp., 7.25%, 06/15/19ˆ | 92,000 | 20,700 | |||||||
Total Energy | 1,550,029 | ||||||||
Financials — 9.1% | |||||||||
Ally Financial, Inc., 3.25%, 02/13/18 | 225,000 | 223,875 | |||||||
Ally Financial, Inc., 3.60%, 05/21/18 | 125,000 | 125,313 | |||||||
Ally Financial, Inc., 3.75%, 11/18/19 | 285,000 | 283,575 | |||||||
Ally Financial, Inc., 4.13%, 03/30/20 | 270,000 | 270,167 | |||||||
Ally Financial, Inc., 4.13%, 02/13/22 | 90,000 | 86,625 | |||||||
American International Group, Inc., 3.38%, 08/15/20 | 335,000 | 347,154 | |||||||
Ares Capital Corp., 3.88%, 01/15/20 | 280,000 | 284,904 | |||||||
Associated Banc-Corp., 5.13%, 03/28/16 | 60,000 | 61,807 | |||||||
Associates Corp. of North America, 6.95%, 11/01/18 | 415,000 | 477,811 | |||||||
Aviation Capital Group Corp., 3.88%, 09/27/16‡ | 430,000 | 437,738 | |||||||
Bank of America Corp., 2.00%, 01/11/18 | 235,000 | 235,914 | |||||||
Bank of America Corp., Series L, 5.65%, 05/01/18 | 200,000 | 219,846 | |||||||
Bank of America Corp., 5.49%, 03/15/19 | 66,000 | 72,402 | |||||||
Bank of New York Mellon Corp. (The), Series E, 4.95%, 12/29/49@ | 395,000 | 392,531 |
See accompanying Notes to Financial Statements.
87
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
CORPORATE BONDS (continued) | |||||||||
Financials (continued) | |||||||||
Bear Stearns Cos. LLC (The), 7.25%, 02/01/18 | $ | 75,000 | $ | 84,992 | |||||
Capital One Financial Corp., 6.15%, 09/01/16 | 400,000 | 422,313 | |||||||
Corporate Office Properties LP, 3.70%, 06/15/21 | 460,000 | 456,316 | |||||||
Countrywide Financial Corp., 6.25%, 05/15/16 | 130,000 | 135,133 | |||||||
DDR Corp., 7.88%, 09/01/20 | 280,000 | 343,134 | |||||||
DDR Corp., 3.50%, 01/15/21 | 145,000 | 147,225 | |||||||
Digital Realty Trust LP, 3.95%, 07/01/22 | 270,000 | 269,848 | |||||||
DuPont Fabros Technology LP, 5.88%, 09/15/21 | 475,000 | 483,313 | |||||||
Fifth Third Bancorp, 4.50%, 06/01/18 | 321,000 | 340,241 | |||||||
First Tennessee Bank NA, 2.95%, 12/01/19 | 250,000 | 250,132 | |||||||
Ford Motor Credit Co. LLC, 8.13%, 01/15/20 | 455,000 | 556,178 | |||||||
FS Investment Corp., 4.25%, 01/15/20 | 435,000 | 440,157 | |||||||
FS Investment Corp., 4.75%, 05/15/22 | 160,000 | 156,733 | |||||||
General Motors Financial Co., Inc., 2.40%, 04/10/18 | 355,000 | 356,119 | |||||||
Genworth Holdings, Inc., 7.63%, 09/24/21 | 200,000 | 211,000 | |||||||
Goldman Sachs Group, Inc. (The), 5.63%, 01/15/17 | 670,000 | 709,737 | |||||||
Government Properties Income Trust, 3.75%, 08/15/19 | 85,000 | 87,515 | |||||||
HCP, Inc., 3.75%, 02/01/19 | 175,000 | 182,180 | |||||||
Healthcare Trust of America Holdings LP, 3.38%, 07/15/21 | 150,000 | 149,443 | |||||||
Hertz Corp. (The), 5.88%, 10/15/20 | 440,000 | 447,700 | |||||||
HSBC Finance Corp., 6.68%, 01/15/21 | 225,000 | 260,609 | |||||||
HSBC USA, Inc., 1.70%, 03/05/18 | 200,000 | 199,527 | |||||||
HSBC USA, Inc., 2.63%, 09/24/18 | 225,000 | 229,951 | |||||||
Huntington Bancshares, Inc., 7.00%, 12/15/20 | 200,000 | 238,501 | |||||||
International Lease Finance Corp., 3.88%, 04/15/18 | 390,000 | 392,925 | |||||||
iStar Financial, Inc., 4.00%, 11/01/17 | 410,000 | 404,363 | |||||||
Jefferies Group LLC, 5.13%, 04/13/18 | 275,000 | 292,397 | |||||||
JPMorgan Chase & Co., 6.13%, 06/27/17 | 280,000 | 302,938 | |||||||
JPMorgan Chase & Co., 2.25%, 01/23/20 | 380,000 | 373,660 | |||||||
JPMorgan Chase & Co., Series Z, 5.30%, 12/29/49@ | 40,000 | 39,804 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
CORPORATE BONDS (continued) | |||||||||
Financials (continued) | |||||||||
Lazard Group LLC, 4.25%, 11/14/20 | $ | 275,000 | $ | 289,498 | |||||
Lincoln National Corp., 8.75%, 07/01/19 | 125,000 | 153,389 | |||||||
Lincoln National Corp., 6.05%, 04/20/67@ | 100,000 | 90,750 | |||||||
Morgan Stanley, 5.55%, 04/27/17 | 425,000 | 455,586 | |||||||
Morgan Stanley, 2.13%, 04/25/18 | 180,000 | 181,290 | |||||||
MPT Operating Partnership LP/MPT Finance Corp., 6.38%, 02/15/22 | 45,000 | 48,150 | |||||||
National Retail Properties, Inc., 5.50%, 07/15/21 | 250,000 | 279,845 | |||||||
Navient Corp., 4.88%, 06/17/19 | 285,000 | 282,863 | |||||||
New York Life Global Funding, 1.95%, 02/11/20‡ | 65,000 | 64,078 | |||||||
Progressive Corp. (The), 6.70%, 06/15/37@ | 430,000 | 450,424 | |||||||
Prudential Financial, Inc., 5.20%, 03/15/44@ | 300,000 | 298,275 | |||||||
Santander Holdings USA, Inc., 3.00%, 09/24/15 | 115,000 | 115,321 | |||||||
Santander Holdings USA, Inc., 2.65%, 04/17/20 | 475,000 | 467,497 | |||||||
SBA Tower Trust, 2.93%, 12/15/17‡ | 725,000 | 735,949 | |||||||
Select Income REIT, 4.15%, 02/01/22 | 515,000 | 510,847 | |||||||
Senior Housing Properties Trust, 3.25%, 05/01/19 | 415,000 | 415,671 | |||||||
Springleaf Finance Corp., 5.25%, 12/15/19 | 455,000 | 449,881 | |||||||
State Street Corp., 4.96%, 03/15/18 | 300,000 | 322,698 | |||||||
TIAA Asset Management Finance Co. LLC, 2.95%, 11/01/19‡ | 400,000 | 403,201 | |||||||
Ventas Realty LP, 4.00%, 04/30/19 | 310,000 | 327,832 | |||||||
Voya Financial, Inc., 2.90%, 02/15/18 | 365,000 | 374,797 | |||||||
Wells Fargo & Co., 5.13%, 09/15/16 | 75,000 | 78,631 | |||||||
Willis North America, Inc., 6.20%, 03/28/17 | 250,000 | 267,785 | |||||||
Zions Bancorporation, 4.50%, 03/27/17 | 195,000 | 203,689 | |||||||
Total Financials | 19,751,693 | ||||||||
Health Care — 1.0% | |||||||||
AbbVie, Inc., 2.50%, 05/14/20 | 75,000 | 74,315 | |||||||
CHS/Community Health Systems, Inc., 5.13%, 08/15/18 | 170,000 | 174,675 | |||||||
Forest Laboratories LLC, 4.38%, 02/01/19‡ | 200,000 | 211,844 |
See accompanying Notes to Financial Statements.
88
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
CORPORATE BONDS (continued) | |||||||||
Health Care (continued) | |||||||||
HCA, Inc., 3.75%, 03/15/19 | $ | 160,000 | $ | 161,600 | |||||
HCA, Inc., 6.50%, 02/15/20 | 185,000 | 207,200 | |||||||
Hologic, Inc., 5.25%, 07/15/22‡ | 40,000 | 40,950 | |||||||
Owens & Minor, Inc., 3.88%, 09/15/21 | 95,000 | 97,844 | |||||||
Quintiles Transnational Corp., 4.88%, 05/15/23‡ | 170,000 | 171,275 | |||||||
Tenet Healthcare Corp., 6.25%, 11/01/18 | 150,000 | 163,313 | |||||||
Tenet Healthcare Corp., 5.00%, 03/01/19‡ | 60,000 | 60,225 | |||||||
Tenet Healthcare Corp., 3.79%, 06/15/20@‡ | 260,000 | 262,599 | |||||||
Tenet Healthcare Corp., 6.00%, 10/01/20 | 105,000 | 112,219 | |||||||
Zimmer Biomet Holdings, Inc., 2.70%, 04/01/20 | 295,000 | 293,865 | |||||||
Zimmer Biomet Holdings, Inc., 3.15%, 04/01/22 | 295,000 | 290,615 | |||||||
Total Health Care | 2,322,539 | ||||||||
Industrials — 4.2% | |||||||||
ADT Corp. (The), 6.25%, 10/15/21(a) | 540,000 | 569,699 | |||||||
America West Airlines 1999-1 Pass-Through Trust, Series 991G, 7.93%, 01/02/19 | 349,660 | 377,633 | |||||||
America West Airlines 2001-1 Pass-Through Trust, Series 011G, 7.10%, 04/02/21 | 1,012,770 | 1,098,854 | |||||||
American Airlines Group, Inc., 4.63%, 03/01/20‡ | 195,000 | 189,150 | |||||||
Atlas Air 2000-1 Class A Pass-Through Trust, Series 00-1, 8.71%, 01/02/19 | 260,451 | 266,311 | |||||||
Continental Airlines 1999-1 Class A Pass-Through Trust, Series 991A, 6.55%, 02/02/19 | 313,913 | 343,923 | |||||||
Continental Airlines 1999-2 Class C-2 Pass-Through Trust, Series AMBC, 6.24%, 03/15/20 | 217,150 | 234,522 | |||||||
Continental Airlines 2000-1 Class A-1 Pass-Through Trust, Series 00A1, 8.05%, 11/01/20 | 479,434 | 543,535 | |||||||
Continental Airlines 2001-1 Class A-1 Pass-Through Trust, Series 01A1, 6.70%, 06/15/21 | 854,172 | 907,558 | |||||||
Delta Air Lines 2012-1 Class A Pass-Through Trust, Series A, 4.75%, 05/07/20 | 1,008,033 | 1,078,595 | |||||||
Delta Air Lines Class A Pass-Through Trust, Series 2010-2A, 4.95%, 05/23/19 | 662,176 | 701,906 | |||||||
HD Supply, Inc., 5.25%, 12/15/21‡(a) | 360,000 | 366,300 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
CORPORATE BONDS (continued) | |||||||||
Industrials (continued) | |||||||||
Masco Corp., 5.95%, 03/15/22 | $ | 400,000 | $ | 451,000 | |||||
Northwest Airlines 2002-1 Class G-2 Pass-Through Trust, Series 02-1, 6.26%, 11/20/21 | 535,587 | 560,332 | |||||||
Penske Truck Leasing Co. LP/PTL Finance Corp., 3.38%, 02/01/22‡ | 230,000 | 223,606 | |||||||
Textron, Inc., 4.63%, 09/21/16 | 400,000 | 416,165 | |||||||
UAL 2009-2a Pass-Through Trust, Series 09-2, 9.75%, 01/15/17 | 429,764 | 467,369 | |||||||
United Rentals North America, Inc., 7.38%, 05/15/20 | 150,000 | 160,799 | |||||||
United Rentals North America, Inc., 4.63%, 07/15/23 | 310,000 | 305,149 | |||||||
Total Industrials | 9,262,406 | ||||||||
Information Technology — 0.3% | |||||||||
Dun & Bradstreet Corp. (The), 3.25%, 12/01/17 | 150,000 | 152,627 | |||||||
Dun & Bradstreet Corp. (The), 4.00%, 06/15/20 | 150,000 | 150,879 | |||||||
Juniper Networks, Inc., 3.30%, 06/15/20 | 110,000 | 110,903 | |||||||
Oracle Corp., 2.50%, 05/15/22 | 200,000 | 194,383 | |||||||
Total Information Technology | 608,792 | ||||||||
Materials — 0.2% | |||||||||
Hexion, Inc., 6.63%, 04/15/20 | $ | 175,000 | 161,438 | ||||||
Huntsman International LLC, 4.88%, 11/15/20 | 200,000 | 200,500 | |||||||
Tronox Finance LLC, 6.38%, 08/15/20(a) | 120,000 | 111,900 | |||||||
Total Materials | 473,838 | ||||||||
Telecommunication Services — 0.7% | |||||||||
AT&T, Inc., 3.88%, 08/15/21 | 210,000 | 216,900 | |||||||
AT&T, Inc., 3.00%, 06/30/22 | 205,000 | 198,249 | |||||||
Frontier Communications Corp., 7.13%, 03/15/19 | 250,000 | 259,375 | |||||||
Frontier Communications Corp., 6.25%, 09/15/21 | 185,000 | 169,275 | |||||||
T-Mobile USA, Inc., 6.46%, 04/28/19 | 275,000 | 283,938 | |||||||
Verizon Communications, Inc., 2.50%, 09/15/16 | 43,000 | 43,711 | |||||||
Verizon Communications, Inc., 3.65%, 09/14/18 | 50,000 | 52,629 | |||||||
Verizon Communications, Inc., 2.55%, 06/17/19 | 200,000 | 202,924 | |||||||
Verizon Communications, Inc., 4.60%, 04/01/21 | 125,000 | 134,495 | |||||||
Total Telecommunication Services | 1,561,496 |
See accompanying Notes to Financial Statements.
89
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
CORPORATE BONDS (continued) | |||||||||
Utilities — 0.4% | |||||||||
AmeriGas Finance LLC/AmeriGas Finance Corp., 6.75%, 05/20/20 | $ | 45,000 | $ | 47,588 | |||||
AmeriGas Finance LLC/AmeriGas Finance Corp., 7.00%, 05/20/22 | 235,000 | 250,275 | |||||||
Energy Transfer Partners LP, 4.15%, 10/01/20 | 250,000 | 257,233 | |||||||
Exelon Corp., 2.85%, 06/15/20 | 70,000 | 70,486 | |||||||
Talen Energy Supply LLC, 5.13%, 07/15/19‡ | 265,000 | 261,025 | |||||||
Total Utilities | 886,607 | ||||||||
Total Corporate Bonds (Cost $40,842,839) | 40,700,400 | ||||||||
TERM LOANS — 12.2% | |||||||||
Consumer Discretionary — 4.3% | |||||||||
Allison Transmission, Inc., 3.50%, 08/23/19@ | 40,896 | 41,038 | |||||||
Aristocrat International Pty Ltd., 4.75%, 10/20/21 (Australia)@ | 410,308 | 412,651 | |||||||
Boyd Gaming Corp., 4.00%, 08/14/20@ | 290,219 | 291,347 | |||||||
Caesars Entertainment Corp., 11.25%, 10/31/16@ˆ | 136,711 | 124,451 | |||||||
Caesars Entertainment Corp., 11.50%, 03/01/17@ˆ | 55,720 | 48,745 | |||||||
CBAC Borrower LLC, 8.25%, 07/02/20@ | 200,000 | 185,500 | |||||||
CDS US Intermediate Holdings, Inc., 0.00%, 07/08/22@(b) | 189,000 | 189,236 | |||||||
Cequel Communications LLC, 3.50%, 02/14/19@ | 482,446 | 481,508 | |||||||
Charter Communications Operating, LLC, 3.00%, 07/01/20@ | 414,710 | 410,737 | |||||||
CityCenter Holdings LLC, 4.25%, 10/16/20@ | 243,658 | 244,343 | |||||||
CSC Holdings LLC, 2.69%, 04/17/20@ | 453,348 | 449,381 | |||||||
FCA U.S. LLC, 3.25%, 12/31/18@ | 325,875 | 325,626 | |||||||
General Nutrition Centers, Inc., 3.25%, 03/04/19@ | 323,397 | 319,255 | |||||||
Hanesbrands, Inc., 3.25%, 04/29/22@ | 32,918 | 33,164 | |||||||
Hilton Worldwide Finance LLC, 3.50%, 10/25/20@ | 402,855 | 403,485 | |||||||
Landry’s, Inc., 4.00%, 04/24/18@ | 192,550 | 193,373 | |||||||
Las Vegas Sands, LLC, 3.25%, 12/19/20@ | 537,380 | 535,548 | |||||||
Libbey Glass, Inc., 3.75%, 04/09/21@ | 314,820 | 315,116 | |||||||
Life Time Fitness, Inc., 4.25%, 06/10/22@ | 265,000 | 263,443 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
TERM LOANS (continued) | |||||||||
Consumer Discretionary (continued) | |||||||||
MGM Resorts International, 3.50%, 12/20/19@ | $ | 355,911 | $ | 354,042 | |||||
PetSmart Inc, 4.25%, 03/10/22@ | 297,000 | 296,777 | |||||||
Pinnacle Entertainment, Inc., 3.75%, 08/13/20@ | 230,592 | 230,942 | |||||||
PVH Corp., 3.25%, 02/13/20@ | 257,528 | 259,163 | |||||||
Seminole Hard Rock Entertainment, Inc., 3.50%, 05/14/20@ | 58,800 | 58,714 | |||||||
Seminole Tribe of Florida, Inc., 3.00%, 04/29/20@ | 380,484 | 380,769 | |||||||
Six Flags Theme Parks, Inc., 0.00%, 06/30/22@(b) | 153,000 | 153,311 | |||||||
SRAM LLC, 5.25%, 04/10/20@ | 191,911 | 190,711 | |||||||
Staples, Inc., 0.00%, 04/24/21@(b) | 248,000 | 247,936 | |||||||
TI Group Automotive Systems LLC, 0.00%, 06/25/22@(b) | 38,000 | 37,953 | |||||||
Tribune Media Co., 0.00%, 12/27/20@(b) | 419,006 | 419,791 | |||||||
Univision Communications, Inc., 4.00%, 03/01/20@ | 702,359 | 697,841 | |||||||
Univision Communications, Inc., 4.00%, 03/01/20@ | 407,055 | 404,694 | |||||||
Virgin Media Investment Holdings Ltd., 3.50%, 06/30/23 (United Kingdom)@ | 336,661 | 333,856 | |||||||
Total Consumer Discretionary | 9,334,447 | ||||||||
Industrials — 1.6% | |||||||||
Air Canada, 4.00%, 09/26/19@ | 233,238 | 234,186 | |||||||
Alliant Techsystems, Inc., 3.50%, 11/02/20@ | 331,373 | 331,941 | |||||||
American Airlines, Inc., 3.50%, 06/27/20@ | 305,000 | 302,905 | |||||||
American Airlines, Inc., 3.75%, 10/10/21@ | 254,000 | 253,643 | |||||||
Avis Budget Car Rental LLC, 3.00%, 03/15/19@ | 610,197 | 611,979 | |||||||
AWAS Finance Luxembourg 2012 SA, 3.50%, 07/16/18@ | 496,612 | 498,010 | |||||||
DigitalGlobe, Inc., 3.75%, 01/31/20@ | 167,513 | 167,827 | |||||||
McJunkin Red Man Corp., 5.00%, 11/09/19@ | 57,400 | 57,053 | |||||||
Nortek, Inc., 3.50%, 10/30/20@ | 111,000 | 110,376 | |||||||
Nortek, Inc., 3.50%, 10/30/20@ | 481,145 | 478,838 | |||||||
TransDigm, Inc., 3.75%, 06/04/21@ | 173,250 | 172,178 | |||||||
United Airlines, Inc., 3.75%, 09/15/21@ | 266,983 | 267,818 | |||||||
Total Industrials | 3,486,754 |
See accompanying Notes to Financial Statements.
90
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
TERM LOANS (continued) | |||||||||
Information Technology — 1.5% | |||||||||
Avago Technologies Cayman Ltd., 3.75%, 05/06/21 (Cayman Islands)@ | $ | 618,210 | $ | 619,892 | |||||
Blue Coat Systems. Inc., 4.50%, 05/26/22@ | 220,000 | 219,863 | |||||||
Deltek, Inc., 0.00%, 06/25/22@(b) | 22,706 | 22,763 | |||||||
First Data Corp., 3.69%, 03/24/18@ | 732,000 | 730,495 | |||||||
Infinity Acquisition LLC/Infinity Acquisition Finance Corp., 4.00%, 08/06/21@ | 250,110 | 248,859 | |||||||
Infor U.S., Inc., 3.75%, 06/03/20@ | 241,463 | 238,621 | |||||||
Interactive Data Corp., 4.75%, 05/02/21@ | 293,919 | 295,204 | |||||||
Kronos Inc., 4.50%, 10/30/19@ | 431,462 | 432,325 | |||||||
SunGard Data Systems, Inc., 4.00%, 03/08/20@ | 485,000 | 485,453 | |||||||
Total Information Technology | 3,293,475 | ||||||||
Financials — 1.0% | |||||||||
Delos Finance Sarl, 3.50%, 03/06/21 (Luxembourg)@ | 633,000 | 632,842 | |||||||
Realogy Group LLC, 3.75%, 03/05/20@ | 494,975 | 494,512 | |||||||
TransUnion LLC, 3.75%, 04/09/21@ | 630,167 | 625,932 | |||||||
Walter Investment Management Corp., 4.75%, 12/18/20@ | 395,980 | 375,068 | |||||||
Total Financials | 2,128,354 | ||||||||
Health Care — 1.1% | |||||||||
Alere, Inc., 0.00%, 06/18/22@(b) | 239,000 | 239,502 | |||||||
CHS/Community Health Systems, Inc., 3.53%, 12/31/18@ | 269,895 | 270,219 | |||||||
ConvaTec, Inc., 0.00%, 12/22/16@(b) | 20,000 | 20,018 | |||||||
Davita HealthCare Partners, Inc., 3.50%, 06/24/21@ | 107,910 | 108,106 | |||||||
Endo Luxembourg Finance I Co. Sarl, 0.00%, 06/24/16@(b) | 93,000 | 93,000 | |||||||
Endo Luxembourg Finance I Co. Sarl, 0.00%, 06/24/22@(b) | 147,000 | 147,322 | |||||||
Endo Luxemburg Finance I Co. Sarl, 3.25%, 02/28/21@ | 296,250 | 297,237 | |||||||
IASIS Healthcare LLC, 4.50%, 05/03/18@ | 219,375 | 220,014 | |||||||
Quintiles Transnational Corp, 3.25%, 05/12/22@ | 76,000 | 76,238 | |||||||
RPI Finance Trust, 3.25%, 11/09/18@ | 410,969 | 412,457 | |||||||
RPI Finance Trust, 3.50%, 11/09/20@ | 305,233 | 305,996 | |||||||
Valeant Pharmaceuticals International, Inc., 3.50%, 02/13/19 (Canada)@ | 259,734 | 259,450 | |||||||
Total Health Care | 2,449,559 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
TERM LOANS (continued) | |||||||||
Consumer Staples — 0.7% | |||||||||
Albertson’s Holdings LLC, 5.50%, 08/25/21@ | $ | 269,325 | $ | 270,996 | |||||
ARAMARK Corp., 3.25%, 09/07/19@ | 518,950 | 519,228 | |||||||
ARAMARK Corp., 3.25%, 02/24/21@ | 497,481 | 496,327 | |||||||
HJ Heinz Co., 3.25%, 06/05/20@ | 317,637 | 318,055 | |||||||
Hostess Brands, Inc., 6.75%, 03/20/20@ | 154,688 | 157,395 | |||||||
Spectrum Brands, Inc., 0.00%, 06/23/22@(b) | 69,000 | 69,518 | |||||||
Total Consumer Staples | 1,831,519 | ||||||||
Telecommunication Services — 0.6% | |||||||||
Crown Castle Operating Co., 3.00%, 01/31/21@ | 662,224 | 659,531 | |||||||
Level 3 Financing, Inc., 4.00%, 01/15/20@ | 225,000 | 225,352 | |||||||
Level 3 Financing, Inc., 3.50%, 05/31/22@ | 110,000 | 109,393 | |||||||
Total Telecommunication Services | 994,276 | ||||||||
Utilities — 0.5% | |||||||||
Calpine Corp., 3.50%, 05/27/22@ | 449,000 | 445,857 | |||||||
NRG Energy, Inc., 2.75%, 07/01/18@ | 631,794 | 627,659 | |||||||
Total Utilities | 1,073,516 | ||||||||
Energy — 0.5% | |||||||||
Fieldwood Energy LLC, 3.88%, 09/28/18@ | 197,915 | 189,071 | |||||||
MEG Energy Corp., 3.75%, 03/31/20 (Canada)@ | 574,054 | 563,135 | |||||||
Seadrill Operating LP, 4.00%, 02/21/21@ | 249,492 | 189,537 | |||||||
Total Energy | 941,743 | ||||||||
Materials — 0.4% | |||||||||
AZ Chem U.S., Inc., 4.50%, 06/12/21@ | 88,468 | 88,579 | |||||||
FMG Resources Pty. Ltd., 3.75%, 06/30/19 (Australia)@ | 634,124 | 564,659 | |||||||
Ineos U.S. Finance LLC, 3.75%, 12/15/20@ | 195,764 | 194,826 | |||||||
Total Materials | 848,064 | ||||||||
Total Term Loans (Cost $26,576,185) | 26,381,707 |
See accompanying Notes to Financial Statements.
91
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
FOREIGN BONDS — 6.0% | |||||||||
Consumer Discretionary — 0.3% | |||||||||
International Game Technology PLC, 5.63%, 02/15/20 (United Kingdom)‡ | $ | 485,000 | $ | 476,513 | |||||
Volkswagen Group of America Finance LLC, 2.45%, 11/20/19‡ | 200,000 | 200,893 | |||||||
Total Consumer Discretionary | 677,406 | ||||||||
Energy — 0.3% | |||||||||
Petroleos Mexicanos, 6.00%, 03/05/20 (Mexico) | 350,000 | 392,000 | |||||||
Weatherford International Ltd., 9.63%, 03/01/19 (Bermuda) | 150,000 | 175,274 | |||||||
Total Energy | 567,274 | ||||||||
Financials — 3.0% | |||||||||
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, 4.25%, 07/01/20 (Ireland) | 165,000 | 165,309 | |||||||
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, 4.50%, 05/15/21 (Ireland)‡ | 165,000 | 166,238 | |||||||
Aircastle Ltd., 5.13%, 03/15/21 (Bermuda) | 210,000 | 212,625 | |||||||
American Tower Trust, 1.55%, 03/15/18‡ | 347,000 | 345,529 | |||||||
Axis Bank Ltd., 3.25%, 05/21/20 (India)‡ | 450,000 | 448,449 | |||||||
Banco Santander Chile, 2.15%, 06/07/18 (Chile)@‡ | 200,000 | 203,500 | |||||||
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA, 2.25%, 01/14/19 (Netherlands) | 300,000 | 302,215 | |||||||
Corp. Andina de Fomento, 3.75%, 01/15/16 (Supranational) | 100,000 | 101,035 | |||||||
Corpbanca SA, 3.88%, 09/22/19 (Chile)‡ | 500,000 | 508,763 | |||||||
Daimler Finance North America LLC, 2.45%, 05/18/20‡ | 500,000 | 497,111 | |||||||
Guanay Finance Ltd., 6.00%, 12/15/20 (Cayman Islands)‡ | 460,000 | 477,112 | |||||||
Industrial & Commercial Bank of China Ltd., 3.23%, 11/13/19 (China) | 475,000 | 484,348 | |||||||
Intesa Sanpaolo SpA, 3.13%, 01/15/16 (Italy) | 200,000 | 201,551 | |||||||
Itau Unibanco Holding SA, 2.85%, 05/26/18 (Brazil)‡ | 200,000 | 198,900 | |||||||
Korea Development Bank (The), 4.63%, 11/16/21 (South Korea) | 375,000 | 416,313 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
FOREIGN BONDS (continued) | |||||||||
Financials (continued) | |||||||||
Macquarie Group Ltd., 6.00%, 01/14/20 (Australia)‡ | $ | 290,000 | $ | 326,186 | |||||
Royal Bank of Scotland Group PLC, 6.40%, 10/21/19 (United Kingdom) | 350,000 | 391,504 | |||||||
Schaeffler Finance BV, 4.25%, 05/15/21 (Germany)‡ | 375,000 | 367,500 | |||||||
Volkswagen Group of America Finance LLC, 2.40%, 05/22/20‡ | 600,000 | 597,344 | |||||||
XLIT Ltd., Series E, 6.50%, 12/29/49 (Ireland)@ | 105,000 | 90,104 | |||||||
Total Financials | 6,501,636 | ||||||||
Health Care — 0.4% | |||||||||
Actavis Funding SCS, 3.00%, 03/12/20 (Luxembourg) | 85,000 | 85,405 | |||||||
Actavis Funding SCS, 3.45%, 03/15/22 (Luxembourg) | 85,000 | 84,320 | |||||||
Mallinckrodt International Finance SA/Mallinckrodt CB LLC, 4.88%, 04/15/20 (Luxembourg)‡ | 20,000 | 20,426 | |||||||
Valeant Pharmaceuticals International, Inc., 6.75%, 08/15/18 (Canada)‡ | 85,000 | 89,303 | |||||||
Valeant Pharmaceuticals International, Inc., 5.38%, 03/15/20 (Canada)‡ | 640,000 | 662,400 | |||||||
Total Health Care | 941,854 | ||||||||
Industrials — 0.9% | |||||||||
Air Canada 2013-1 Class B Pass-Through Trust, 5.38%, 05/15/21 (Canada)‡ | 496,351 | 516,205 | |||||||
Bombardier, Inc., 4.75%, 04/15/19 (Canada)‡ | 370,000 | 361,675 | |||||||
Virgin Australia Trust, Series 2013-1A, 5.00%, 10/23/23 (Australia)‡ | 1,007,679 | 1,050,505 | |||||||
Total Industrials | 1,928,385 | ||||||||
Information Technology — 0.4% | |||||||||
Alibaba Group Holding Ltd., 2.50%, 11/28/19 (Cayman Islands)‡ | 700,000 | 693,074 | |||||||
NXP BV/NXP Funding LLC, 4.13%, 06/15/20 (Netherlands)‡ | 240,000 | 242,400 | |||||||
Total Information Technology | 935,474 | ||||||||
Materials — 0.1% | |||||||||
Anglo American Capital PLC, 3.63%, 05/14/20 (United Kingdom)‡ | 200,000 | 200,244 | |||||||
Methanex Corp., 3.25%, 12/15/19 (Canada) | 100,000 | 100,713 | |||||||
Total Materials | 300,957 |
See accompanying Notes to Financial Statements.
92
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
FOREIGN BONDS (continued) | |||||||||
Telecommunication Services — 0.2% | |||||||||
Millicom International Cellular SA, 6.63%, 10/15/21 (Luxembourg)‡ | $ | 280,000 | $ | 289,100 | |||||
Telefonica Emisiones SAU, 6.42%, 06/20/16 (Spain) | 100,000 | 104,584 | |||||||
Total Telecommunication Services | 393,684 | ||||||||
Utilities — 0.4% | |||||||||
Majapahit Holding BV, 7.75%, 01/20/20 (Indonesia)‡ | 245,000 | 283,894 | |||||||
State Grid Overseas Investment 2014 Ltd., 2.75%, 05/07/19 (China)‡ | 500,000 | 505,507 | |||||||
Total Utilities | 789,401 | ||||||||
Total Foreign Bonds (Cost $13,002,962) | 13,036,071 | ||||||||
U.S. TREASURY NOTES — 2.0% | |||||||||
U.S. Treasury Note, 04/15/18, 0.75% | 1,250,000 | 1,243,555 | |||||||
U.S. Treasury Note, 03/31/20, 1.38% | 3,000,000 | 2,970,702 | |||||||
Total U.S. Treasury Notes (Cost $4,252,218) | 4,214,257 | ||||||||
U.S. GOVERNMENT AGENCY SECURITIES — 0.6% | |||||||||
Federal Home Loan Mortgage Corporation, Class J, Series 2012-4011, 4.00%, 12/15/41 | 698,308 | 741,787 | |||||||
Federal National Mortgage Association, Class NA, Series 2009-36, 5.00%, 06/25/37 | 136,900 | 146,631 | |||||||
Federal National Mortgage Association, Class PA, Series 2010-57, 4.50%, 12/25/38 | 21,550 | 21,560 | |||||||
Federal National Mortgage Association, Class PA, Series 2012-10, 4.00%, 11/25/41 | 418,417 | 438,607 | |||||||
Total U.S. Government Agency Securities (Cost $1,320,616) | 1,348,585 | ||||||||
MONEY MARKET FUND — 4.7% | |||||||||
BofA Cash Reserves Money Market Fund – Capital Class, 0.05%(c) (Cost $10,181,323) | 10,181,323 | 10,181,323 | |||||||
REPURCHASE AGREEMENTS — 0.3%(d) | |||||||||
Citibank NA, dated 06/30/15, due 07/01/15, 0.14%, total to be received $113,089, (collateralized by various U.S. Government Agency Obligations, 0.63% – 6.50%, 11/15/16 – 07/01/45, totaling $115,351) | 113,089 | 113,089 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
REPURCHASE AGREEMENTS(d) (continued) | |||||||||
HSBC Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.12%, total to be received $140,829, (collateralized by various U.S. Government Agency Obligations, 2.50% – 6.50%, 07/01/18 – 07/01/45, totaling $143,646) | $ | 140,829 | $ | 140,829 | |||||
Mizuho Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.14%, total to be received $250,001, (collateralized by various U.S. Government Agency Obligations, 0.00% – 8.50%, 06/13/16 – 04/20/44, totaling $255,000) | 250,000 | 250,000 | |||||||
Morgan Stanley & Co. LLC, dated 06/30/15, due 07/01/15, 0.09%, total to be received $250,001, (collateralized by various U.S. Government Agency Obligations, 0.75% – 9.50%, 02/16/16 – 05/01/45, totaling $255,000) | 250,000 | 250,000 | |||||||
Total Repurchase Agreements (Cost $753,918) | 753,918 | ||||||||
Total Investments — 100.4% (Cost $218,597,969) | 216,811,382 | ||||||||
Liabilities in Excess of Other Assets — (0.4)% | (870,576 | ) | |||||||
Net Assets — 100.0% | $ | 215,940,806 |
PLC – Public Limited Company
ˆ | Is In Default. |
‡ | 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, 2015. |
# | Represents step coupon bond. Rate shown reflects the rate in effect as of June 30, 2015. |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $1,376,040; the aggregate market value of the collateral held by the fund is $1,412,003. The aggregate market value of the collateral includes non-cash securities collateral having a value of $658,085. |
(b) | This Loan will settle after June 30, 2015 at which time the interest rate will be determined. |
(c) | Rate shown reflects the 7-day yield as of June 30, 2015. |
(d) | Collateral received from brokers for securities lending was invested in these short-term investments. |
See accompanying Notes to Financial Statements.
93
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2015
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Asset Backed Securities | 26.4 | % | ||
Commercial Mortgage Backed Securities | 18.8 | |||
Consumer Discretionary | 6.6 | |||
Consumer Staples | 0.8 | |||
Energy | 1.6 | |||
Financials | 13.1 | |||
Health Care | 2.5 | |||
Industrials | 6.7 | |||
Information Technology | 2.2 | |||
Materials | 0.7 | |||
Non-Agency Mortgage-Backed Securities | 1.6 | |||
Residential Mortgage Backed Securities | 9.0 | |||
Telecommunication Services | 1.5 | |||
U.S. Government Agency Securities | 0.6 | |||
U.S. Treasury Note | 2.0 | |||
Utilities | 1.3 | |||
Money Market Fund | 4.7 | |||
Repurchase Agreements | 0.3 | |||
Total Investments | 100.4 | |||
Liabilities in Excess of Other Assets | (0.4 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
94
ADVISORSHARES PACIFIC ASSET ENHANCED FLOATING RATE ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
TERM LOANS — 87.0% | |||||||||
Advertising — 1.8% | |||||||||
Acosta, Inc., 4.25%, 09/26/21@ | $ | 498,747 | $ | 497,929 | |||||
Aerospace & Defense — 3.4% | |||||||||
Hamilton Sundstrand Industrial (Luxembourg), 4.00%, 12/13/19@ | 500,000 | 483,750 | |||||||
TransDigm, Inc., 3.75%, 02/28/20@ | 443,501 | 440,804 | |||||||
Total Aerospace & Defense | 924,554 | ||||||||
Airlines — 0.9% | |||||||||
Landmark Aviation, 8.25%, 01/25/21@ | 250,000 | 248,958 | |||||||
Auto Parts & Equipment — 3.6% | |||||||||
Cooper-Standard Automotive, 4.00%, 04/04/21@ | 497,487 | 497,301 | |||||||
Federal-Mogul Holdings Corp., 4.75%, 04/15/21@ | 497,487 | 493,291 | |||||||
Total Auto Parts & Equipment | 990,592 | ||||||||
Building Materials — 3.6% | |||||||||
GYP Holdings III Corp., 4.75%, 04/01/21@ | 498,741 | 483,778 | |||||||
Roofing Supply Group LLC, 5.00%, 05/31/19@ | 500,000 | 501,250 | |||||||
Total Building Materials | 985,028 | ||||||||
Chemicals — 4.6% | |||||||||
MacDermid, Inc., 4.75%, 06/07/20@ | 248,750 | 250,170 | |||||||
Univar, Inc., 5.00%, 06/30/17@ | 497,401 | 497,590 | |||||||
Univar, Inc., 4.50%, 07/01/22@ | 500,000 | 500,080 | |||||||
Total Chemicals | 1,247,840 | ||||||||
Commercial Services — 7.3% | |||||||||
Allied Security Holdings LLC, 4.25%, 02/12/21@ | 497,604 | 498,176 | |||||||
Brickman Group Ltd. LLC (The), 5.25%, 12/18/20 | 250,000 | 248,789 | |||||||
Brickman Group Ltd. LLC (The), 7.50%, 12/17/21@ | 250,000 | 251,355 | |||||||
Interactive Data Corp., 4.75%, 04/30/21@ | 497,487 | 499,664 | |||||||
ServiceMaster Co. LLC (The), 4.25%, 07/01/21@ | 497,494 | 498,272 | |||||||
Total Commercial Services | 1,996,256 | ||||||||
Distribution/Wholesale — 1.8% | |||||||||
Spin Holdco, Inc., 4.25%, 11/14/19@ | 498,123 | 497,189 | |||||||
Diversified Financial Services — 2.7% | |||||||||
AlixPartners LLP, 4.00%, 07/10/20@ | 248,782 | 248,121 | |||||||
Onex Wizard U.S. Acquisition, Inc., 4.25%, 03/11/22@ | 498,750 | 499,187 | |||||||
Total Diversified Financial Services | 747,308 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
TERM LOANS (continued) | |||||||||
Entertainment — 1.8% | |||||||||
Scientific Games International, Inc., 6.00%, 10/01/21@ | $ | 497,500 | $ | 497,876 | |||||
Environmental Control — 0.9% | |||||||||
Waste Industries USA, Inc., 4.25%, 02/27/20@ | 249,375 | 250,389 | |||||||
Food — 3.7% | |||||||||
Albertsons LLC, 5.38%, 03/21/19@ | 498,750 | 501,339 | |||||||
U.S. Foods, Inc., 4.50%, 03/31/19@ | 497,462 | 498,877 | |||||||
Total Food | 1,000,216 | ||||||||
Hand/Machine Tools — 1.8% | |||||||||
Apex Tool Group LLC, 4.50%, 01/31/20@ | 498,090 | 489,789 | |||||||
Healthcare – Services — 3.7% | |||||||||
CHS/Community Health Systems, Inc., 3.75%, 12/31/19@ | 175,613 | 175,858 | |||||||
CHS/Community Health Systems, Inc., 4.00%, 01/27/21@ | 323,124 | 324,079 | |||||||
IASIS Healthcare LLC, 4.50%, 05/03/18@ | 498,721 | 500,175 | |||||||
Total Healthcare – Services | 1,000,112 | ||||||||
Household Products/Wares — 1.8% | |||||||||
Reynolds Group Holdings, Inc., 4.50%, 12/01/18@ | 487,336 | 489,621 | |||||||
Insurance — 1.8% | |||||||||
HUB International Ltd., 4.00%, 10/02/20@ | 248,741 | 247,264 | |||||||
USI, Inc., 4.25%, 12/27/19@ | 248,734 | 248,942 | |||||||
Total Insurance | 496,206 | ||||||||
Internet — 0.9% | |||||||||
Zayo Group LLC, 3.75%, 05/06/21@ | 248,736 | 247,042 | |||||||
Leisure Time — 3.6% | |||||||||
24 Hour Fitness Worldwide, Inc., 4.75%, 05/28/21@ | 248,744 | 237,007 | |||||||
Bombardier Recreational Products, Inc., 3.75%, 01/30/19@ | 250,000 | 250,250 | |||||||
ClubCorp Club Operations, Inc., 4.25%, 07/24/20@ | 500,000 | 501,937 | |||||||
Total Leisure Time | 989,194 | ||||||||
Lodging — 2.5% | |||||||||
Caesars Entertainment Resort Properties LLC, 7.00%, 10/09/20@ | 248,737 | 226,973 | |||||||
Caesars Growth Properties Holdings LLC, 6.25%, 05/08/21@ | 248,744 | 213,298 |
See accompanying Notes to Financial Statements.
95
ADVISORSHARES PACIFIC ASSET ENHANCED FLOATING RATE ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
TERM LOANS (continued) | |||||||||
Lodging (continued) | |||||||||
Hilton Worldwide Finance LLC, 3.50%, 10/26/20@ | $ | 233,750 | $ | 234,115 | |||||
Total Lodging | 674,386 | ||||||||
Machinery-Diversified — 2.9% | |||||||||
Husky Injection Molding Systems Ltd., 7.25%, 06/30/22@ | 300,000 | 297,375 | |||||||
Rexnord, 4.00%, 08/21/20@ | 497,468 | 496,777 | |||||||
Total Machinery-Diversified | 794,152 | ||||||||
Media — 1.8% | |||||||||
Cequel Communications LLC, 3.50%, 02/14/19@ | 250,000 | 249,514 | |||||||
iHeartCommunications, Inc., 6.94%, 01/30/19@ | 250,000 | 231,620 | |||||||
Total Media | 481,134 | ||||||||
Mining — 1.6% | |||||||||
FMG Resources Pty. Ltd. (Australia), 3.75%, 06/30/19@ | 497,468 | 442,973 | |||||||
Miscellaneous Manufacturing — 0.9% | |||||||||
Gates Global LLC, 4.25%, 07/06/21@ | 248,747 | 245,344 | |||||||
Packaging & Containers — 3.6% | |||||||||
Ardagh Holdings USA, Inc., 4.00%, 12/17/19@ | 497,481 | 497,324 | |||||||
BWAY Holding Co., 5.50%, 08/14/20@ | 497,487 | 498,938 | |||||||
Total Packaging & Containers | 996,262 | ||||||||
Pharmaceuticals — 0.9% | |||||||||
Par Pharmaceutical Cos., Inc., 4.00%, 09/30/19@ | 248,737 | 249,004 | |||||||
Retail — 18.6% | |||||||||
BJ’s Wholesale Club, Inc., 4.50%, 09/26/19@ | 497,903 | 498,182 | |||||||
Burger King, 3.75%, 12/10/21@ | 379,489 | 379,673 | |||||||
CEC Entertainment, Inc., 4.00%, 02/15/21@ | 497,481 | 485,251 | |||||||
Dollar Tree, Inc., 3.50%, 03/09/22@ | 208,861 | 209,101 | |||||||
Doosan Infracore International, Inc., 4.50%, 05/28/21@ | 248,638 | 250,192 | |||||||
Jo-Ann Stores LLC, 4.00%, 03/16/18@ | 240,865 | 234,242 | |||||||
Leslie’s Poolmart, 4.25%, 10/16/19@ | 248,721 | 249,342 | |||||||
Michaels Stores, Inc., 4.00%, 01/28/20@ | 249,372 | 250,074 | |||||||
Neiman Marcus Group Ltd. LLC, 4.25%, 10/25/20@ | 498,737 | 496,498 | |||||||
NPC International, Inc., 4.00%, 12/28/18@ | 498,070 | 494,646 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
TERM LOANS (continued) | |||||||||
Retail (continued) | |||||||||
PetSmart, Inc., 4.25%, 03/11/22@ | $ | 500,000 | $ | 499,625 | |||||
Pilot Travel Centers LLC, 4.25%, 10/01/21@ | 496,241 | 501,874 | |||||||
Rite Aid Corp., 5.75%, 08/21/20@ | 250,000 | 252,891 | |||||||
Smart & Final Stores LLC, 4.00%, 11/15/19@ | 250,000 | 249,844 | |||||||
Total Retail | 5,051,435 | ||||||||
Semiconductors — 1.8% | |||||||||
Freescale Semiconductor, Inc., 5.00%, 01/15/21@ | 497,468 | 499,956 | |||||||
Software — 0.9% | |||||||||
Infor U.S., Inc., 3.75%, 06/03/20@ | 248,714 | 245,787 | |||||||
Telecommunications — 1.8% | |||||||||
Level 3 Financing, Inc., 3.50%, 05/31/22@ | 500,000 | 497,240 | |||||||
Total Term Loans (Cost $23,904,594) | 23,773,772 | ||||||||
CORPORATE BONDS — 13.4% | |||||||||
Chemicals — 0.9% | |||||||||
Tronox Finance LLC, 6.38%, 08/15/20 | 250,000 | 233,125 | |||||||
Commercial Services — 1.0% | |||||||||
United Rentals North America, Inc., 7.38%, 05/15/20 | 250,000 | 267,998 | |||||||
Distribution/Wholesale — 1.1% | |||||||||
HD Supply, Inc., 11.50%, 07/15/20 | 250,000 | 290,000 | |||||||
Diversified Financial Services — 0.9% | |||||||||
Jefferies Finance LLC, 7.38%, 04/01/20‡ | 250,000 | 246,875 | |||||||
Electric — 1.8% | |||||||||
Dynegy, Inc., 6.75%, 11/01/19‡ | 250,000 | 261,374 | |||||||
GenOn Energy, Inc., 9.88%, 10/15/20 | 250,000 | 255,625 | |||||||
Total Electric | 516,999 | ||||||||
Entertainment — 0.5% | |||||||||
Penn National Gaming, Inc., 5.88%, 11/01/21 | 124,000 | 125,550 | |||||||
Healthcare – Services — 1.0% | |||||||||
Tenet Healthcare Corp., 8.00%, 08/01/20 | 250,000 | 260,938 | |||||||
Home Builders — 0.9% | |||||||||
Lennar Corp., 4.50%, 06/15/19 | 250,000 | 256,250 |
See accompanying Notes to Financial Statements.
96
ADVISORSHARES PACIFIC ASSET ENHANCED FLOATING RATE ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares/ Principal | Value | |||||||
CORPORATE BONDS (continued) | |||||||||
Lodging — 1.7% | |||||||||
Caesars Entertainment Resort Properties LLC, 11.00%, 10/01/21@ | $ | 250,000 | $ | 210,625 | |||||
MGM Resorts International, 6.75%, 10/01/20 | 250,000 | 266,250 | |||||||
Total Lodging | 476,875 | ||||||||
Oil & Gas — 0.7% | |||||||||
Linn Energy LLC, 6.50%, 05/15/19 | 250,000 | 203,125 | |||||||
Real Estate — 1.0% | |||||||||
Howard Hughes Corp. (The), 6.88%, 10/01/21‡ | 250,000 | 266,250 | |||||||
Software — 1.1% | |||||||||
First Data Corp., 12.63%, 01/15/21 | 250,000 | 289,375 | |||||||
Telecommunications — 0.8% | |||||||||
Sprint Communications, Inc., 6.00%, 11/15/22 | 250,000 | 229,063 | |||||||
Total Corporate Bonds (Cost $3,708,766) | 3,662,423 | ||||||||
MONEY MARKET FUND — 4.5% | |||||||||
JP Morgan US Government Money Market Fund – Institutional Class, 0.01%(a) (Cost $1,216,054) | 1,216,054 | 1,216,054 | |||||||
Total Investments — 104.9% (Cost $28,829,414) | 28,652,249 | ||||||||
Liabilities in Excess of Other Assets — (4.9)% | (1,340,637 | ) | |||||||
Net Assets — 100.0% | $ | 27,311,612 |
‡ | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, 144A securities are deemed to be liquid. |
@ | Variable rate instrument. The interest rate shown reflects the rate in effect at June 30, 2015. |
(a) | Rate shown reflects the 7-day yield as of June 30, 2015. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
![]() | ![]() | |||
% of Net Assets | ||||
Advertising | 1.8 | % | ||
Aerospace & Defense | 3.4 | |||
Airlines | 0.9 | |||
Auto Parts & Equipment | 3.6 | |||
Building Materials | 3.6 | |||
Chemicals | 5.5 | |||
Commercial Services | 8.3 | |||
Distribution/Wholesale | 2.9 | |||
Diversified Financial Services | 3.6 | |||
Electric | 1.8 | |||
Entertainment | 2.3 | |||
Environmental Control | 0.9 | |||
Food | 3.7 | |||
Hand/Machine Tools | 1.8 | |||
Healthcare – Services | 4.7 | |||
Home Builders | 0.9 | |||
Household Products/Wares | 1.8 | |||
Insurance | 1.8 | |||
Internet | 0.9 | |||
Leisure Time | 3.6 | |||
Lodging | 4.2 | |||
Machinery-Diversified | 2.9 | |||
Media | 1.8 | |||
Mining | 1.6 | |||
Miscellaneous Manufacturing | 0.9 | |||
Oil & Gas | 0.7 | |||
Packaging & Containers | 3.6 | |||
Pharmaceuticals | 0.9 | |||
Real Estate | 1.0 | |||
Retail | 18.6 | |||
Semiconductors | 1.8 | |||
Software | 2.0 | |||
Telecommunications | 2.6 | |||
Money Market Fund | 4.5 | |||
Total Investments | 104.9 | |||
Liabilities in Excess of Other Assets | (4.9 | ) | ||
Net Assets | 100.0 | % |
Total Return Swaps contracts outstanding as of June 30, 2015:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Reference Entity | Number of Contracts | Annual Financing Rate Received (Paid) | Termination Date | Notional Amounts | Fair Value | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
iBoxx USD Liquid Leveraged Loans | 1,000,000 | 0.15 | % | 9/21/2015 | $ | 1,000,000 | $ | 997,288 | $ | (2,712 | ) |
J.P. Morgan Chase Bank acts as the counterparty to the total return swap contracts listed above. The Fund either receives fees from, or pays fees to, the counterparty, depending upon the total return of the benchmark, and the agreed-upon financing rate.
See accompanying Notes to Financial Statements.
97
ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
CORPORATE BONDS — 67.5% | |||||||||
Advertising — 2.8% | |||||||||
Affinion Group, Inc., 7.88%, 12/15/18(a) | $ | 8,102,000 | $ | 5,428,340 | |||||
Sitel LLC/Sitel Finance Corp., 11.00%, 08/01/17‡ | 4,956,000 | 5,055,120 | |||||||
Total Advertising | 10,483,460 | ||||||||
Agriculture — 2.8% | |||||||||
Alliance One International, Inc., 9.88%, 07/15/21(a) | 5,813,000 | 5,108,174 | |||||||
Southern States Cooperative, Inc., 10.00%, 08/15/21‡ | 5,726,000 | 5,382,440 | |||||||
Total Agriculture | 10,490,614 | ||||||||
Auto Manufacturers — 1.2% | |||||||||
Navistar International Corp., 8.25%, 11/01/21(a) | 4,909,000 | 4,688,095 | |||||||
Auto Parts & Equipment — 3.0% | |||||||||
Titan International, Inc., 6.88%, 10/01/20(a) | 5,160,000 | 4,766,550 | |||||||
UCI International, Inc., 8.63%, 02/15/19(a) | 7,412,000 | 6,633,740 | |||||||
Total Auto Parts & Equipment | 11,400,290 | ||||||||
Banks — 1.4% | |||||||||
Creditcorp, 12.00%, 07/15/18‡ | 6,293,000 | 5,293,986 | |||||||
Beverages — 1.3% | |||||||||
Innovation Ventures LLC/Innovation Ventures Finance Corp., 9.50%, 08/15/19‡ | 4,713,000 | 4,925,085 | |||||||
Chemicals — 2.5% | |||||||||
Hexion, Inc., 10.00%, 04/15/20 | 4,980,000 | 5,141,850 | |||||||
Tronox Finance LLC, 6.38%, 08/15/20(a) | 4,710,000 | 4,392,075 | |||||||
Total Chemicals | 9,533,925 | ||||||||
Coal — 2.0% | |||||||||
Arch Coal, Inc., 8.00%, 01/15/19‡(a) | 13,473,000 | 2,896,695 | |||||||
Murray Energy Corp., 11.25%, 04/15/21‡ | 5,595,000 | 4,713,788 | |||||||
Total Coal | 7,610,483 | ||||||||
Commercial Services — 6.5% | |||||||||
Constellis Holdings LLC/Constellis Finance Corp., 9.75%, 05/15/20‡ | 5,230,000 | 5,060,025 | |||||||
Harland Clarke Holdings Corp., 9.25%, 03/01/21‡ | 5,698,000 | 5,007,118 | |||||||
Quad/Graphics, Inc., 7.00%, 05/01/22 | 4,000,000 | 3,910,000 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
CORPORATE BONDS (continued) | |||||||||
Commercial Services (continued) | |||||||||
Speedy Cash Intermediate Holdings Corp., 10.75%, 05/15/18‡(a) | $ | 5,203,000 | $ | 4,942,850 | |||||
StoneMor Partners LP/Cornerstone Family Services of WV, 7.88%, 06/01/21 | 4,938,000 | 5,160,209 | |||||||
Total Commercial Services | 24,080,202 | ||||||||
Computers — 1.0% | |||||||||
DynCorp International, Inc., 10.38%, 07/01/17(a) | 5,310,000 | 3,849,750 | |||||||
Cosmetics/Personal Care — 0.9% | |||||||||
Revlon Consumer Products Corp., 5.75%, 02/15/21 | 3,500,000 | 3,447,500 | |||||||
Diversified Financial Services — 1.3% | |||||||||
CNG Holdings, Inc., 9.38%, 05/15/20‡ | 6,697,000 | 4,888,810 | |||||||
Electrical Components & Equipment — 1.4% | |||||||||
Artesyn Embedded Technologies, Inc., 9.75%, 10/15/20‡ | 5,141,000 | 5,128,148 | |||||||
Electronics — 1.3% | |||||||||
Kemet Corp., 10.50%, 05/01/18(a) | 4,935,000 | 5,009,025 | |||||||
Entertainment — 3.5% | |||||||||
DreamWorks Animation SKG, Inc., 6.88%, 08/15/20‡ | 4,230,000 | 4,208,850 | |||||||
Gibson Brands, Inc., 8.88%, 08/01/18‡ | 4,620,000 | 4,689,299 | |||||||
WMG Acquisition Corp., 6.75%, 04/15/22‡ | 4,010,000 | 3,830,272 | |||||||
Total Entertainment | 12,728,421 | ||||||||
Food — 2.7% | |||||||||
Bi-Lo LLC/Bi-Lo Finance Corp., 9.25%, 02/15/19‡ | 4,681,000 | 4,751,215 | |||||||
Simmons Foods, Inc., 7.88%, 10/01/21‡(a) | 5,807,000 | 5,356,958 | |||||||
Total Food | 10,108,173 | ||||||||
Healthcare – Services — 2.4% | |||||||||
Select Medical Corp., 6.38%, 06/01/21 | 4,325,000 | 4,389,875 | |||||||
Vantage Oncology LLC/Vantage Oncology Finance Co., 9.50%, 06/15/17‡ | 4,727,000 | 4,632,460 | |||||||
Total Healthcare – Services | 9,022,335 | ||||||||
Leisure Time — 1.3% | |||||||||
ICON Health & Fitness, Inc., 11.88%, 10/15/16‡(a) | 5,021,000 | 5,046,105 |
See accompanying Notes to Financial Statements.
98
ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
CORPORATE BONDS (continued) | |||||||||
Media — 2.1% | |||||||||
Lee Enterprises, Inc., 9.50%, 03/15/22‡ | $ | 4,925,000 | $ | 5,029,656 | |||||
Sirius XM Radio, Inc., 6.00%, 07/15/24‡ | 3,000,000 | 3,037,500 | |||||||
Total Media | 8,067,156 | ||||||||
Miscellaneous Manufacturing — 2.6% | |||||||||
Koppers, Inc., 7.88%, 12/01/19 | 4,780,000 | 4,839,750 | |||||||
Techniplas LLC, 10.00%, 05/01/20‡ | 4,745,000 | 4,804,313 | |||||||
Total Miscellaneous Manufacturing | 9,644,063 | ||||||||
Oil & Gas — 2.5% | |||||||||
Calumet Specialty Products Partners LP/Calumet Finance Corp., 7.75%, 04/15/23‡(a) | 4,580,000 | 4,728,850 | |||||||
Talos Production LLC/Talos Production Finance, Inc., 9.75%, 02/15/18‡ | 5,423,000 | 4,745,125 | |||||||
Total Oil & Gas | 9,473,975 | ||||||||
Oil & Gas Services — 1.4% | |||||||||
Seitel, Inc., 9.50%, 04/15/19(a) | 5,737,000 | 5,263,698 | |||||||
Pharmaceuticals — 2.7% | |||||||||
BioScrip, Inc., 8.88%, 02/15/21 | 5,797,000 | 4,949,189 | |||||||
NBTY, Inc., 9.00%, 10/01/18 | 4,920,000 | 5,098,350 | |||||||
Total Pharmaceuticals | 10,047,539 | ||||||||
Retail — 3.1% | |||||||||
Carrols Restaurant Group, Inc., 8.00%, 05/01/22‡ | 3,065,000 | 3,233,575 | |||||||
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp., 8.63%, 06/15/20 | 4,265,000 | 4,435,599 | |||||||
Guitar Center, Inc., 6.50%, 04/15/19‡(a) | 4,500,000 | 4,140,000 | |||||||
Total Retail | 11,809,174 | ||||||||
Semiconductors — 2.3% | |||||||||
Advanced Micro Devices, Inc., 7.75%, 08/01/20(a) | 5,530,000 | 4,838,750 | |||||||
Amkor Technology, Inc., 6.38%, 10/01/22 | 3,800,000 | 3,861,750 | |||||||
Total Semiconductors | 8,700,500 | ||||||||
Software — 1.2% | |||||||||
Southern Graphics, Inc., 8.38%, 10/15/20‡ | 4,400,000 | 4,532,000 | |||||||
Telecommunications — 9.0% | |||||||||
Avaya, Inc., 9.00%, 04/01/19‡(a) | 4,558,000 | 4,671,950 | |||||||
EarthLink Holdings Corp., 8.88%, 05/15/19(a) | 4,595,000 | 4,813,263 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
CORPORATE BONDS (continued) | |||||||||
Telecommunications (continued) | |||||||||
Frontier Communications Corp., 7.63%, 04/15/24 | $ | 5,230,000 | $ | 4,641,625 | |||||
Sprint Corp., 7.25%, 09/15/21 | 4,700,000 | 4,594,250 | |||||||
Syniverse Holdings, Inc., 9.13%, 01/15/19 | 5,625,000 | 4,978,124 | |||||||
Trilogy International Partners LLC/Trilogy International Finance, Inc., 10.25%, 08/15/16‡ | 4,981,000 | 4,946,755 | |||||||
Windstream Services LLC, 7.75%, 10/01/21(a) | 5,165,000 | 4,751,800 | |||||||
Total Telecommunications | 33,397,767 | ||||||||
Transportation — 1.3% | |||||||||
Era Group, Inc., 7.75%, 12/15/22(a) | 4,955,000 | 4,893,063 | |||||||
Total Corporate Bonds (Cost $273,342,639) | 253,563,342 | ||||||||
TERM LOANS — 18.8% | |||||||||
Agriculture — 1.3% | |||||||||
North Atlantic Trading Co., Inc., 7.75%, 01/13/20@ | 4,717,508 | 4,685,075 | |||||||
North Atlantic Trading Co., Inc., 8.75%, 01/13/20@ | 173,344 | 172,152 | |||||||
Total Agriculture | 4,857,227 | ||||||||
Apparel — 1.9% | |||||||||
SK Spice Sarl, 9.50%, 09/30/18 (Luxembourg)@ | 4,353,386 | 4,364,269 | |||||||
SK Spice Sarl, 0.00%, 06/12/20 (Luxembourg)@(b) | 3,000,000 | 2,955,000 | |||||||
Total Apparel | 7,319,269 | ||||||||
Chemicals — 1.3% | |||||||||
American Pacific Corp., 7.00%, 02/27/19@ | 4,877,702 | 4,934,600 | |||||||
Electronics — 1.2% | |||||||||
Isola USA Corp., 9.25%, 11/29/18@ | 4,435,323 | 4,324,440 | |||||||
Food — 2.5% | |||||||||
Flavors Holdings, Inc., 6.75%, 04/03/20@ | 4,750,321 | 4,581,090 | |||||||
Shearer’s Foods LLC, 7.75%, 06/30/22@ | 4,931,000 | 4,894,018 | |||||||
Total Food | 9,475,108 | ||||||||
Forest Products & Paper — 2.5% | |||||||||
Appvion, Inc., 5.75%, 06/28/19@ | 4,987,277 | 4,657,494 | |||||||
Appvion, Inc., 6.75%, 06/28/19@ | 12,723 | 11,881 | |||||||
NewPage Corp., 9.50%, 02/11/21@ | 5,834,334 | 4,724,352 | |||||||
Total Forest Products & Paper | 9,393,727 |
See accompanying Notes to Financial Statements.
99
ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
TERM LOANS (continued) | |||||||||
Healthcare – Services — 2.8% | |||||||||
Lantheus Medical Imaging, Inc., 0.00%, 6/25/22@(b) | $ | 5,000,000 | $ | 4,943,750 | |||||
Radnet Management, Inc., 8.00%, 03/19/21@ | 5,800,000 | 5,720,250 | |||||||
Total Healthcare – Services | 10,664,000 | ||||||||
Oil & Gas — 1.4% | |||||||||
Osum Production Corp., 6.50%, 07/31/20 (Canada)@ | 5,937,525 | 5,180,491 | |||||||
Software — 1.2% | |||||||||
Greenway Medical Technologies, 9.25%, 11/04/21@ | 4,753,846 | 4,682,538 | |||||||
Telecommunications — 1.4% | |||||||||
Global Tel*Link Corp, 9.00%, 11/20/20@ | 5,375,000 | 5,160,000 | |||||||
Transportation — 1.3% | |||||||||
YRC Worldwide, Inc., 8.25%, 02/12/19@ | 4,840,542 | 4,701,376 | |||||||
Total Term Loans (Cost $72,690,071) | 70,692,776 | ||||||||
FOREIGN BONDS — 12.8% | |||||||||
Internet — 1.2% | |||||||||
Mood Media Corp., 9.25%, 10/15/20 (Canada)‡ | 5,385,000 | 4,617,638 | |||||||
Mining — 3.9% | |||||||||
AuRico Gold, Inc., 7.75%, 04/01/20 (Canada)‡ | 4,835,000 | 4,883,350 | |||||||
HudBay Minerals, Inc., 9.50%, 10/01/20 (Canada) | 4,520,000 | 4,813,800 | |||||||
IAMGOLD Corp., 6.75%, 10/01/20 (Canada)‡ | 5,962,000 | 5,022,985 | |||||||
Total Mining | 14,720,135 | ||||||||
Miscellaneous Manufacturing — 1.1% | |||||||||
Bombardier, Inc., 6.13%, 01/15/23 (Canada)‡(a) | 4,710,000 | 4,203,675 | |||||||
Oil & Gas — 4.0% | |||||||||
CHC Helicopter SA, 9.38%, 06/01/21 (Canada) | 8,102,250 | 4,861,350 | |||||||
Northern Blizzard Resources, Inc., 7.25%, 02/01/22 (Canada)‡(a) | 5,214,000 | 5,005,439 | |||||||
Teine Energy Ltd., 6.88%, 09/30/22 (Canada)‡ | 5,120,000 | 4,966,400 | |||||||
Total Oil & Gas | 14,833,189 | ||||||||
Telecommunications — 1.3% | |||||||||
VimpelCom Holdings BV, 7.50%, 03/01/22 (Netherlands)‡ | 5,055,000 | 4,966,538 | |||||||
Transportation — 1.3% | |||||||||
Global Ship Lease, Inc., 10.00%, 04/01/19 (Marshall Islands)‡ | 4,610,000 | 4,828,975 | |||||||
Total Foreign Bonds (Cost $50,897,505) | 48,170,150 |
![]() | ![]() | ![]() | |||||||
Investments | Shares/ Principal | Value | |||||||
COMMON STOCK — 0.0%** | |||||||||
Oil & Gas — 0.0%** | |||||||||
Connacher Oil and Gas Ltd. (Canada)* (Cost $288,191) | 76,855 | $ | 116,051 | ||||||
REPURCHASE AGREEMENTS — 13.8%(c) | |||||||||
Citibank NA, dated 06/30/15, due 07/01/15, 0.14%, total to be received $7,782,559, (collateralized by various U.S. Government Agency Obligations, 0.63% – 6.50%, 11/15/16 – 07/01/45, totaling $7,938,180) | $ | 7,782,529 | 7,782,529 | ||||||
Mizuho Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.14%, total to be received $12,075,938, (collateralized by various U.S. Government Agency Obligations, 0.00% – 8.50%, 06/13/16 – 04/20/44, totaling $12,317,409) | 12,075,891 | 12,075,891 | |||||||
Morgan Stanley & Co. LLC, dated 06/30/15, due 07/01/15, 0.09%, total to be received $12,075,921, (collateralized by various U.S. Government Agency Obligations, 0.75% – 9.50%, 02/16/16 – 05/01/45, totaling $12,317,409) | 12,075,891 | 12,075,891 | |||||||
HSBC Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.10%, total to be received $12,075,925, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.38%, 07/15/15 – 01/15/37, totaling $12,317,454) | 12,075,891 | 12,075,891 | |||||||
RBC Capital Markets LLC, dated 06/30/15, due 07/01/15, 0.10%, total to be received $7,873,171, (collateralized by various U.S. Government Agency Obligations, 2.38% – 6.50%, 03/01/19 – 02/20/65, totaling $8,030,612) | 7,873,149 | 7,873,149 | |||||||
Total Repurchase Agreements (Cost $51,883,351) | 51,883,351 | ||||||||
Total Investments — 112.9% (Cost $449,101,757) | $ | 424,425,670 | |||||||
Liabilities in Excess of Other Assets — (12.9)% | (48,434,767 | ) | |||||||
Net Assets — 100.0% | $ | 375,990,903 |
LP — Limited Partnership
* | Non-income producing security. |
** | Less than 0.05% |
@ | Variable rate instrument. The interest rate shown reflects the rate in effect at June 30, 2015. |
See accompanying Notes to Financial Statements.
100
ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments (continued)
June 30, 2015
‡ | 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) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $57,428,728; the aggregate market value of the collateral held by the fund is $58,848,876. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $6,965,525. |
(b) | This Loan will settle after June 30, 2015 at which time the interest rate will be determined. |
(c) | Collateral received from brokers for securities lending was invested in these short-term investments. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
![]() | ![]() | |||
% of Net Assets | ||||
Advertising | 2.8 | % | ||
Agriculture | 4.1 | |||
Apparel | 1.9 | |||
Auto Manufacturers | 1.2 | |||
Auto Parts & Equipment | 3.0 | |||
Banks | 1.4 | |||
Beverages | 1.3 | |||
Chemicals | 3.8 | |||
Coal | 2.0 | |||
Commercial Services | 6.5 | |||
Computers | 1.0 | |||
Cosmetics/Personal Care | 0.9 | |||
Diversified Financial Services | 1.3 | |||
Electrical Components & Equipment | 1.4 | |||
Electronics | 2.5 | |||
Entertainment | 3.5 | |||
Food | 5.2 | |||
Forest Products & Paper | 2.5 | |||
Healthcare – Services | 5.2 | |||
Internet | 1.2 | |||
Leisure Time | 1.3 | |||
Media | 2.1 | |||
Mining | 3.9 | |||
Miscellaneous Manufacturing | 3.7 | |||
Oil & Gas | 7.9 | |||
Oil & Gas Services | 1.4 | |||
Pharmaceuticals | 2.7 | |||
Retail | 3.1 | |||
Semiconductors | 2.3 | |||
Software | 2.4 | |||
Telecommunications | 11.7 | |||
Transportation | 3.9 | |||
Repurchase Agreements | 13.8 | |||
Total Investments | 112.9 | |||
Liabilities in Excess of Other Assets | (12.9 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
101
ADVISORSHARES PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS — 53.5% | |||||||||
Banks — 4.8% | |||||||||
Citigroup, Inc. | 1,700 | $ | 93,908 | ||||||
Wells Fargo & Co. | 2,099 | 118,048 | |||||||
Total Banks | 211,956 | ||||||||
Building Materials — 2.3% | |||||||||
Masco Corp. | 3,850 | 102,680 | |||||||
Computers — 1.9% | |||||||||
Apple, Inc. | 650 | 81,526 | |||||||
Electric — 1.9% | |||||||||
Southern Co. (The) | 2,000 | 83,800 | |||||||
Gas — 2.0% | |||||||||
Atmos Energy Corp. | 1,700 | 87,176 | |||||||
Home Builders — 2.3% | |||||||||
Lennar Corp., Class A | 1,989 | 101,519 | |||||||
Insurance — 8.5% | |||||||||
American International Group, Inc. | 2,199 | 135,942 | |||||||
Aon PLC (United Kingdom) | 1,352 | 134,767 | |||||||
Validus Holdings Ltd. | 2,275 | 100,077 | |||||||
Total Insurance | 370,786 | ||||||||
Mining — 8.0% | |||||||||
Aluminum Corp. of China Ltd. (China)*(a)(b) | 8,750 | 108,938 | |||||||
Franco-Nevada Corp. (Canada) | 2,068 | 98,540 | |||||||
Royal Gold, Inc. | 1,685 | 103,779 | |||||||
Sandstorm Gold Ltd. (Canada)*(a) | 13,921 | 40,928 | |||||||
Total Mining | 352,185 | ||||||||
Pharmaceuticals — 1.9% | |||||||||
Merck & Co., Inc. | 1,500 | 85,395 | |||||||
Pipelines — 2.0% | |||||||||
Kinder Morgan, Inc. | 2,239 | 85,955 | |||||||
Real Estate Investment Trusts — 4.2% | |||||||||
Equity Residential | 700 | 49,119 | |||||||
Essex Property Trust, Inc. | 241 | 51,213 | |||||||
WP Carey, Inc. | 1,400 | 82,516 | |||||||
Total Real Estate Investment Trusts | 182,848 | ||||||||
Semiconductors — 3.1% | |||||||||
Intel Corp. | 4,441 | 135,073 | |||||||
Software — 3.6% | |||||||||
Microsoft Corp. | 2,123 | 93,730 | |||||||
Oracle Corp. | 1,600 | 64,480 | |||||||
Total Software | 158,210 |
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Telecommunications — 7.0% | |||||||||
BCE, Inc. (Canada) | 1,925 | $ | 81,813 | ||||||
Cisco Systems, Inc. | 4,632 | 127,194 | |||||||
Verizon Communications, Inc. | 2,123 | 98,953 | |||||||
Total Telecommunications | 307,960 | ||||||||
Total Common Stocks (Cost $2,230,822) | 2,347,069 | ||||||||
EXCHANGE TRADED FUNDS — 36.5% | |||||||||
Debt Fund — 19.6% | |||||||||
Guggenheim BulletShares 2015 High Yield Corporate Bond ETF | 2,823 | 73,511 | |||||||
Guggenheim BulletShares 2016 High Yield Corporate Bond ETF(a) | 2,791 | 73,347 | |||||||
Guggenheim BulletShares 2017 High Yield Corporate Bond ETF(a) | 2,782 | 73,417 | |||||||
iShares Core U.S. Aggregate Bond ETF | 962 | 104,646 | |||||||
iShares Floating Rate Bond ETF | 1,986 | 100,571 | |||||||
iShares iBoxx $Investment Grade Corporate Bond ETF | 888 | 102,759 | |||||||
iShares International Preferred Stock ETF | 3,937 | 77,441 | |||||||
PIMCO Enhanced Short Maturity Active ETF | 437 | 44,203 | |||||||
PowerShares Senior Loan Portfolio | 4,495 | 106,936 | |||||||
Schwab U.S. Aggregate Bond ETF(a) | 2,030 | 105,012 | |||||||
Total Debt Fund | 861,843 | ||||||||
Equity Fund — 16.9% | |||||||||
Guggenheim S&P 500 Equal Weight Consumer Discretionary ETF | 1,200 | 108,336 | |||||||
Guggenheim S&P 500 Equal Weight Consumer Staples ETF | 1,030 | 108,964 | |||||||
Guggenheim S&P 500 Equal Weight Healthcare ETF | 700 | 111,657 | |||||||
Schwab U.S. Large-Cap ETF | 2,200 | 108,482 | |||||||
Schwab U.S. Mid-Cap ETF | 2,600 | 110,864 | |||||||
SPDR S&P International Dividend ETF | 2,015 | 83,562 | |||||||
SPDR S&P Retail ETF(a) | 1,130 | 111,486 | |||||||
Total Equity Fund | 743,351 | ||||||||
Total Exchange Traded Funds (Cost $1,646,790) | 1,605,194 | ||||||||
MONEY MARKET FUND — 10.6% | |||||||||
Dreyfus Government Cash Management – Investor Shares, 0.01%(c) (Cost $466,381) | 466,381 | 466,381 |
See accompanying Notes to Financial Statements.
102
ADVISORSHARES PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
REPURCHASE AGREEMENTS — 8.0%(d) | |||||||||
Citibank NA, dated 06/30/15, due 07/01/15, 0.14%, total to be received $52,543, (collateralized by various U.S. Government Agency Obligations, 0.63% – 6.50%, 11/15/16 – 07/01/45, totaling $53,594) | $ | 52,543 | $ | 52,543 | |||||
Merrill Lynch Pierce Fenner & Smith Inc., dated 06/30/15, due 07/01/15, 0.14%, total to be received $250,001, (collateralized by various U.S. Government Agency Obligations, 2.18% – 6.00%, 06/01/25 – 06/20/61, totaling $255,000) | 250,000 | 250,000 | |||||||
Royal Bank of Scotland PLC, dated 06/30/15, due 07/01/15, 0.11%, total to be received $47,749, (collateralized by various U.S. Government Agency Obligations, 1.00% – 3.63%, 09/30/15 – 02/15/44, totaling $48,704) | 47,749 | 47,749 | |||||||
Total Repurchase Agreements (Cost $350,292) | 350,292 | ||||||||
Total Investments — 108.6% (Cost $4,694,285) | 4,768,936 | ||||||||
Liabilities in Excess of Other Assets — (8.6)% | (376,018 | ) | |||||||
Net Assets — 100.0% | $ | 4,392,918 |
ETF — Exchange Traded Fund
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 $340,699; the aggregate market value of the collateral held by the fund is $350,292. |
(b) | American Depositary Receipt. |
(c) | Rate shown reflects the 7-day yield as of June 30, 2015. |
(d) | Collateral received from brokers for securities lending was invested in these short-term investments. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
![]() | ![]() | |||
% of Net Assets | ||||
Banks | 4.8 | % | ||
Building Materials | 2.3 | |||
Computers | 1.9 | |||
Debt Fund | 19.6 | |||
Electric | 1.9 | |||
Equity Fund | 16.9 | |||
Gas | 2.0 | |||
Home Builders | 2.3 | |||
Insurance | 8.5 | |||
Mining | 8.0 | |||
Pharmaceuticals | 1.9 | |||
Pipelines | 2.0 | |||
Real Estate Investment Trusts | 4.2 | |||
Semiconductors | 3.1 | |||
Software | 3.6 | |||
Telecommunications | 7.0 | |||
Money Market Fund | 10.6 | |||
Repurchase Agreements | 8.0 | |||
Total Investments | 108.6 | |||
Liabilities in Excess of Other Assets | (8.6 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
103
ADVISORSHARES QAM EQUITY HEDGE ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
EXCHANGE TRADED FUNDS — 91.8% | |||||||||
Commodity Fund — 0.5% | |||||||||
SPDR Gold Shares* | 325 | $ | 36,520 | ||||||
Total Commodity Fund | 36,520 | ||||||||
Debt Fund — 26.3% | |||||||||
AdvisorShares Sage Core Reserves ETF†(a) | 3,500 | 347,795 | |||||||
Guggenheim Enhanced Short Duration ETF(a) | 6,955 | 348,306 | |||||||
iShares Short Treasury Bond ETF(a) | 4,090 | 451,087 | |||||||
SPDR Barclays 1-3 Month T-Bill ETF*(a) | 9,821 | 448,918 | |||||||
SPDR SSgA Ultra Short Term Bond ETF | 7,224 | 289,104 | |||||||
Total Debt Fund | 1,885,210 | ||||||||
Equity Fund — 65.0% | |||||||||
Alerian MLP ETF | 1,490 | 23,184 | |||||||
ALPS Medical Breakthroughs ETF* | 1,552 | 55,143 | |||||||
EGShares India Consumer ETF | 578 | 19,802 | |||||||
Energy Select Sector SPDR Fund | 1,175 | 88,313 | |||||||
First Trust China AlphaDEX Fund | 394 | 10,214 | |||||||
First Trust Dow Jones Internet Index Fund* | 1,095 | 73,584 | |||||||
Global X MSCI Nigeria ETF | 3,002 | 29,119 | |||||||
Global X Social Media Index ETF | 2,315 | 46,393 | |||||||
Guggenheim China Small Cap ETF | 8,047 | 253,641 | |||||||
Guggenheim China Technology ETF | 847 | 33,634 | |||||||
Guggenheim Raymond James SB-1 Equity ETF | 6,258 | 229,356 | |||||||
Guggenheim S&P 500 Equal Weight Consumer Discretionary ETF | 212 | 19,139 | |||||||
Guggenheim S&P 500 Equal Weight ETF | 5,594 | 446,402 | |||||||
Guggenheim S&P 500 Equal Weight Financials ETF | 252 | 11,088 | |||||||
Guggenheim S&P 500 Equal Weight Healthcare ETF | 827 | 131,915 | |||||||
Guggenheim S&P 500 Equal Weight Technology ETF | 941 | 84,916 | |||||||
Guggenheim S&P Global Water Index ETF | 848 | 24,244 | |||||||
Guggenheim S&P Midcap 400 Pure Growth ETF | 862 | 114,043 | |||||||
iShares Core S&P Small-Cap ETF | 243 | 28,645 | |||||||
iShares Global Clean Energy ETF | 97 | 1,079 | |||||||
iShares Global Consumer Discretionary ETF | 152 | 13,876 | |||||||
iShares Global Healthcare ETF | 490 | 53,273 | |||||||
iShares Japan Large-Cap ETF | 827 | 45,758 | |||||||
iShares Micro-Cap ETF | 2,132 | 173,822 | |||||||
iShares MSCI Brazil Capped ETF | 3,969 | 130,064 |
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
EXCHANGE TRADED FUNDS (continued) | |||||||||
Equity Fund (continued) | |||||||||
iShares MSCI EAFE ETF | 682 | $ | 43,300 | ||||||
iShares MSCI Europe Financials ETF | 2,514 | 57,420 | |||||||
iShares MSCI Frontier 100 ETF | 1,095 | 32,051 | |||||||
iShares MSCI Germany ETF | 909 | 25,343 | |||||||
iShares MSCI Hong Kong ETF | 1,515 | 34,178 | |||||||
iShares MSCI Hong Kong Small-Cap ETF | 410 | 11,660 | |||||||
iShares MSCI India Small-Cap ETF | 1,780 | 59,274 | |||||||
iShares MSCI Indonesia ETF | 1,879 | 43,536 | |||||||
iShares MSCI Poland Capped ETF | 449 | 10,255 | |||||||
iShares MSCI South Africa ETF | 60 | 3,926 | |||||||
iShares MSCI Taiwan ETF | 235 | 3,708 | |||||||
iShares MSCI Turkey ETF | 89 | 4,017 | |||||||
iShares MSCI United Kingdom ETF | 1,527 | 27,868 | |||||||
iShares MSCI United Kingdom Small-Cap ETF | 2,115 | 89,528 | |||||||
iShares MSCI USA Momentum Factor ETF | 5,141 | 367,273 | |||||||
iShares PHLX Semiconductor ETF | 573 | 52,768 | |||||||
iShares Russell 1000 Growth ETF | 3,441 | 340,693 | |||||||
iShares Russell 2000 Growth ETF | 1,152 | 178,076 | |||||||
iShares U.S. Broker-Dealers ETF | 791 | 34,677 | |||||||
iShares U.S. Healthcare Providers ETF | 287 | 41,027 | |||||||
Market Vectors ChinaAMC A-Share ETF* | 822 | 47,388 | |||||||
Market Vectors Egypt Index ETF | 135 | 6,519 | |||||||
Market Vectors Gulf States Index ETF | 889 | 24,425 | |||||||
Market Vectors Pharmaceutical ETF | 658 | 46,554 | |||||||
Market Vectors Russia ETF | 3,783 | 69,153 | |||||||
Market Vectors Russia Small-Cap ETF | 244 | 5,478 | |||||||
Market Vectors Unconventional Oil & Gas ETF | 897 | 18,604 | |||||||
Market Vectors Vietnam ETF | 625 | 11,650 | |||||||
PowerShares Dynamic Market Portfolio | 389 | 29,475 | |||||||
PowerShares Russell 2000 Pure Growth Portfolio | 6,019 | 156,976 | |||||||
PowerShares S&P SmallCap Financials Portfolio | 382 | 16,132 | |||||||
PowerShares S&P SmallCap Information Technology Portfolio | 1,112 | 58,113 | |||||||
Schwab International Small-Capital Equity ETF | 5,212 | 163,188 | |||||||
SPDR Russell/Nomura Small Cap Japan ETF | 2,162 | 118,067 | |||||||
SPDR S&P Emerging Asia Pacific ETF | 314 | 27,698 |
See accompanying Notes to Financial Statements.
104
ADVISORSHARES QAM EQUITY HEDGE ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
EXCHANGE TRADED FUNDS (continued) | |||||||||
Equity Fund (continued) | |||||||||
SPDR S&P Emerging Markets SmallCap ETF | 1,608 | $ | 72,424 | ||||||
SPDR S&P Health Care Equipment ETF | 166 | 15,665 | |||||||
Vanguard Small-Cap ETF | 895 | 108,716 | |||||||
WisdomTree Europe SmallCap Dividend Fund | 1,063 | 60,750 | |||||||
Total Equity Fund | 4,658,200 | ||||||||
Total Exchange Traded Funds (Cost $6,317,514) | 6,579,930 | ||||||||
MONEY MARKET FUND — 8.0% | |||||||||
JP Morgan Prime Money Market Fund – Institutional Class, 0.07%(b) (Cost $570,159) | 570,159 | 570,159 | |||||||
Total Investments Before Securities Sold, Not Yet Purchased (Cost $6,887,673) | 7,150,089 | ||||||||
Securities Sold, Not Yet Purchased — (7.9)% | |||||||||
EXCHANGE TRADED FUNDS — (7.9)% | |||||||||
Currency Fund — (5.4)% | |||||||||
CurrencyShares British Pound Sterling Trust* | (612 | ) | (94,285 | ) | |||||
CurrencyShares Euro Trust* | (1,160 | ) | (126,974 | ) | |||||
CurrencyShares Japanese Yen Trust* | (2,058 | ) | (163,302 | ) | |||||
Total Currency Fund | (384,561 | ) | |||||||
Equity Fund — (2.5)% | |||||||||
iShares Russell 1000 Value ETF | (595 | ) | (61,374 | ) | |||||
iShares Russell 2000 Value ETF | (856 | ) | (87,278 | ) | |||||
SPDR EURO STOXX 50 ETF | (796 | ) | (29,794 | ) | |||||
Total Equity Fund | (178,446 | ) | |||||||
Total Securities Sold, Not Yet Purchased [Proceeds Received $(596,607)] | (563,007 | ) | |||||||
Total Investments — 91.9% (Cost $6,291,066) | 6,587,082 | ||||||||
Other Assets in Excess of Liabilities — 8.1% | 583,560 | ||||||||
Net Assets — 100.0% | $ | 7,170,642 |
ETF — Exchange Traded Fund
* | 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 $2,187,725, which includes cash in the amount of $596,891 as of June 30, 2015. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2015. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Commodity Fund | 0.5 | % | ||
Currency Fund | (5.4 | ) | ||
Debt Fund | 26.3 | |||
Equity Fund | 62.5 | |||
Money Market Fund | 8.0 | |||
Total Investments | 91.9 | |||
Other Assets in Excess of Liabilities | 8.1 | |||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
105
ADVISORSHARES RANGER EQUITY BEAR ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
EXCHANGE TRADED FUND — 23.3% | |||||||||
Debt Fund — 23.3% | |||||||||
AdvisorShares Sage Core Reserves ETF† (Cost $29,997,150) | 300,000 | $ | 29,811,000 | ||||||
MONEY MARKET FUNDS — 9.8% | |||||||||
Fidelity Institutional Money Market Government Portfolio – Class III, 0.01%(a) | 10,074,072 | 10,074,072 | |||||||
Morgan Stanley Institutional Liquidity Funds – Government Portfolio, 0.04%(a) | 2,500,000 | 2,500,000 | |||||||
Total Money Market Funds (Cost $12,574,072) | 12,574,072 | ||||||||
Total Investments Before Securities Sold, Not Yet Purchased (Cost $42,571,222) | 42,385,072 | ||||||||
Securities Sold, Not Yet Purchased — (98.1)% | |||||||||
COMMON STOCKS — (98.1)% | |||||||||
Banks — (5.1)% | |||||||||
Deutsche Bank AG (Germany) | (102,000 | ) | (3,076,320 | ) | |||||
TCF Financial Corp. | (210,000 | ) | (3,488,100 | ) | |||||
Total Banks | (6,564,420 | ) | |||||||
Commercial Services — (1.5)% | |||||||||
Huron Consulting Group, Inc.* | (26,500 | ) | (1,857,385 | ) | |||||
Computers — (11.6)% | |||||||||
Diebold, Inc. | (154,400 | ) | (5,404,000 | ) | |||||
Electronics For Imaging, Inc.* | (47,000 | ) | (2,044,970 | ) | |||||
Seagate Technology PLC (Ireland) | (83,100 | ) | (3,947,250 | ) | |||||
Super Micro Computer, Inc.* | (119,000 | ) | (3,520,020 | ) | |||||
Total Computers | (14,916,240 | ) | |||||||
Distribution/Wholesale — (5.9)% | |||||||||
Fastenal Co. | (93,000 | ) | (3,922,740 | ) | |||||
Genuine Parts Co. | (40,000 | ) | (3,581,200 | ) | |||||
Total Distribution/Wholesale | (7,503,940 | ) | |||||||
Diversified Financial Services — (3.3)% | |||||||||
LendingClub Corp.* | (290,000 | ) | (4,277,500 | ) | |||||
Electrical Components & Equipment — (3.0)% | |||||||||
AMETEK, Inc. | (71,000 | ) | (3,889,380 | ) | |||||
Electronics — (2.3)% | |||||||||
National Instruments Corp. | (99,500 | ) | (2,931,270 | ) | |||||
Energy – Alternate Sources — (1.3)% | |||||||||
SolarCity Corp.* | (31,600 | ) | (1,692,180) |
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Healthcare – Products — (0.9)% | |||||||||
Zeltiq Aesthetics, Inc.* | (40,000 | ) | $ | (1,178,800 | ) | ||||
Home Builders — (3.3)% | |||||||||
Winnebago Industries, Inc. | (181,000 | ) | (4,269,790 | ) | |||||
Internet — (14.3)% | |||||||||
Cogent Communications Holdings, Inc. | (98,500 | ) | (3,333,240 | ) | |||||
F5 Networks, Inc.* | (22,400 | ) | (2,695,840 | ) | |||||
Google, Inc., Class C* | (5,925 | ) | (3,084,022 | ) | |||||
Priceline Group, Inc. (The)* | (1,960 | ) | (2,256,685 | ) | |||||
TripAdvisor, Inc.* | (35,400 | ) | (3,084,756 | ) | |||||
Zillow Group, Inc., Class A* | (43,400 | ) | (3,764,515 | ) | |||||
Total Internet | (18,219,058 | ) | |||||||
Leisure Time — (4.8)% | |||||||||
Harley-Davidson, Inc. | (110,000 | ) | (6,198,500 | ) | |||||
Machinery – Diversified — (2.5)% | |||||||||
Flowserve Corp. | (62,000 | ) | (3,264,920 | ) | |||||
Metal Fabricate/Hardware — (4.5)% | |||||||||
Precision Castparts Corp. | (15,250 | ) | (3,048,018 | ) | |||||
Rexnord Corp.* | (111,000 | ) | (2,654,010 | ) | |||||
Total Metal Fabricate/Hardware | (5,702,028 | ) | |||||||
Oil & Gas — (1.0)% | |||||||||
Range Resources Corp. | (26,500 | ) | (1,308,570 | ) | |||||
Retail — (13.1)% | |||||||||
Cabela’s, Inc.* | (92,800 | ) | (4,638,143 | ) | |||||
CarMax, Inc.* | (20,000 | ) | (1,324,200 | ) | |||||
Chipotle Mexican Grill, Inc.* | (4,750 | ) | (2,873,703 | ) | |||||
DSW, Inc., Class A | (109,000 | ) | (3,637,330 | ) | |||||
Five Below, Inc.* | (59,000 | ) | (2,332,270 | ) | |||||
Rush Enterprises, Inc., Class A* | (69,200 | ) | (1,813,732 | ) | |||||
Total Retail | (16,619,378 | ) | |||||||
Semiconductors — (9.4)% | |||||||||
ASML Holding NV (Netherlands)(b) | (18,000 | ) | (1,874,340 | ) | |||||
Cree, Inc.* | (91,000 | ) | (2,368,730 | ) | |||||
M/A-COM Technology Solutions Holdings, Inc.* | (115,500 | ) | (4,417,875 | ) | |||||
Microchip Technology, Inc. | (53,500 | ) | (2,537,238 | ) | |||||
Micron Technology, Inc.* | (47,500 | ) | (894,900 | ) | |||||
Total Semiconductors | (12,093,083 | ) | |||||||
Software — (4.4)% | |||||||||
NetSuite, Inc.* | (26,400 | ) | (2,422,200 | ) | |||||
PROS Holdings, Inc.* | (151,000 | ) | (3,187,610 | ) | |||||
Total Software | (5,609,810) |
See accompanying Notes to Financial Statements.
106
ADVISORSHARES RANGER EQUITY BEAR ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Telecommunications — (5.9)% | |||||||||
CenturyLink, Inc. | (153,000 | ) | $ | (4,495,140 | ) | ||||
NETGEAR, Inc.* | (103,000 | ) | (3,092,060 | ) | |||||
Total Telecommunications | (7,587,200 | ) | |||||||
Total Securities Sold, Not Yet Purchased [Proceeds Received $(129,792,969)] | (125,683,452) | ||||||||
Total Investments – (65.0)% [Cost $(87,221,747)] | (83,298,380 | ) | |||||||
Other Assets in Excess of Liabilities — 165.0% | 211,357,104 | ||||||||
Net Assets — 100.0% | $128,058,724 |
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, 2015. |
(b) | Registered Shares. |
Cash of $126,869,695 has been segregated to cover margin requirement for open short sales as of June 30, 2015.
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
![]() | ![]() | |||
% of Net Assets | ||||
Banks | (5.1 | )% | ||
Commercial Services | (1.5 | ) | ||
Computers | (11.6 | ) | ||
Debt Fund | 23.3 | |||
Distribution/Wholesale | (5.9 | ) | ||
Diversified Financial Services | (3.3 | ) | ||
Electrical Components & Equipment | (3.0 | ) | ||
Electronics | (2.3 | ) | ||
Energy – Alternate Sources | (1.3 | ) | ||
Healthcare – Products | (0.9 | ) | ||
Home Builders | (3.3 | ) | ||
Internet | (14.3 | ) | ||
Leisure Time | (4.8 | ) | ||
Machinery – Diversified | (2.5 | ) | ||
Metal Fabricate/Hardware | (4.5 | ) | ||
Oil & Gas | (1.0 | ) | ||
Retail | (13.1 | ) | ||
Semiconductors | (9.4 | ) | ||
Software | (4.4 | ) | ||
Telecommunications | (5.9 | ) | ||
Money Market Fund | 9.8 | |||
Total Investments | (65.0 | ) | ||
Other Assets in Excess of Liabilities | 165.0 | |||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
107
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
CORPORATE BONDS — 44.9% | |||||||||
Agriculture — 1.1% | |||||||||
Altria Group, Inc., 4.13%, 09/11/15 | $ | 365,000 | $ | 367,075 | |||||
Auto Manufacturers — 1.2% | |||||||||
Ford Motor Credit Co. LLC, 2.50%, 01/15/16 | 400,000 | 403,285 | |||||||
Banks — 11.3% | |||||||||
Bank of America Corp., 1.10%, 03/22/16@ | 410,000 | 410,982 | |||||||
Bank of America Corp., 5.75%, 08/15/16 | 265,000 | 277,570 | |||||||
Bank of New York Mellon Corp. (The), 0.70%, 10/23/15 | 240,000 | 240,119 | |||||||
Capital One Financial Corp., 1.00%, 11/06/15 | 610,000 | 609,129 | |||||||
Citigroup, Inc., 1.07%, 04/01/16@ | 375,000 | 375,818 | |||||||
First Horizon National Corp., 5.38%, 12/15/15 | 325,000 | 330,019 | |||||||
Goldman Sachs Group, Inc. (The), 4.00%, 03/03/24 | 370,000 | 376,867 | |||||||
JPMorgan Chase & Co., 2.60%, 01/15/16 | 275,000 | 277,204 | |||||||
JPMorgan Chase & Co., Series G, 0.90%, 02/26/16@ | 185,000 | 185,282 | |||||||
JPMorgan Chase & Co., 3.45%, 03/01/16 | 150,000 | 152,556 | |||||||
Morgan Stanley, 5.38%, 10/15/15 | 340,000 | 344,465 | |||||||
Santander Holdings USA, Inc., 3.00%, 09/24/15 | 390,000 | 391,090 | |||||||
Total Banks | 3,971,101 | ||||||||
Beverages — 1.0% | |||||||||
Dr Pepper Snapple Group, Inc., 2.90%, 01/15/16 | 360,000 | 364,046 | |||||||
Chemicals — 1.0% | |||||||||
Dow Chemical Co. (The), 2.50%, 02/15/16 | 340,000 | 343,331 | |||||||
Computers — 1.1% | |||||||||
Hewlett-Packard Co., 2.13%, 09/13/15 | 365,000 | 366,225 | |||||||
Diversified Financial Services — 1.7% | |||||||||
American Express Credit Corp., 2.75%, 09/15/15 | 55,000 | 55,214 | |||||||
American Express Credit Corp., 0.79%, 07/29/16@ | 525,000 | 525,917 | |||||||
Total Diversified Financial Services | 581,131 | ||||||||
Electric — 3.7% | |||||||||
Georgia Power Co., 0.61%, 03/15/16@ | 291,000 | 290,765 | |||||||
Progress Energy, Inc., 5.63%, 01/15/16 | 346,000 | 354,756 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
CORPORATE BONDS (continued) | |||||||||
Electric (continued) | |||||||||
PSEG Power LLC, 5.50%, 12/01/15 | $ | 350,000 | $ | 356,646 | |||||
Southern Co. (The), Series A, 2.38%, 09/15/15 | 310,000 | 311,111 | |||||||
Total Electric | 1,313,278 | ||||||||
Food — 3.4% | |||||||||
ConAgra Foods, Inc., 1.35%, 09/10/15 | 370,000 | 370,188 | |||||||
Kroger Co. (The), 2.20%, 01/15/17 | 40,000 | 40,573 | |||||||
Kroger Co. (The), 6.40%, 08/15/17 | 275,000 | 302,925 | |||||||
Mondelez International, Inc., 4.13%, 02/09/16 | 485,000 | 494,286 | |||||||
Total Food | 1,207,972 | ||||||||
Household Products/Wares — 1.1% | |||||||||
Clorox Co. (The), 3.55%, 11/01/15 | 365,000 | 368,532 | |||||||
Insurance — 4.6% | |||||||||
Aflac, Inc., 3.45%, 08/15/15 | 270,000 | 270,764 | |||||||
American International Group, Inc., 5.05%, 10/01/15 | 360,000 | 363,658 | |||||||
Genworth Holdings, Inc., 4.80%, 02/15/24 | 360,000 | 315,000 | |||||||
Prudential Financial, Inc., 4.75%, 09/17/15 | 680,000 | 685,295 | |||||||
Total Insurance | 1,634,717 | ||||||||
Internet — 1.1% | |||||||||
Amazon.com, Inc., 0.65%, 11/27/15 | 390,000 | 390,051 | |||||||
Machinery – Diversified — 0.1% | |||||||||
John Deere Capital Corp., 0.75%, 01/22/16 | 25,000 | 25,061 | |||||||
Media — 2.2% | |||||||||
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., 3.13%, 02/15/16 | 340,000 | 344,081 | |||||||
Time Warner, Inc., 3.15%, 07/15/15 | 415,000 | 415,435 | |||||||
Total Media | 759,516 | ||||||||
Pharmaceuticals — 2.1% | |||||||||
AbbVie, Inc., 1.20%, 11/06/15 | 370,000 | 370,369 | |||||||
Express Scripts Holding Co., 3.13%, 05/15/16 | 340,000 | 345,659 | |||||||
Total Pharmaceuticals | 716,028 | ||||||||
Pipelines — 2.0% | |||||||||
Enterprise Products Operating LLC, 3.20%, 02/01/16 | 340,000 | 344,192 | |||||||
Kinder Morgan Energy Partners LP, 3.50%, 03/01/16 | 340,000 | 344,955 | |||||||
Total Pipelines | 689,147 |
See accompanying Notes to Financial Statements.
108
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
CORPORATE BONDS (continued) | |||||||||
Real Estate — 1.0% | |||||||||
ERP Operating LP, 5.13%, 03/15/16 | $ | 335,000 | $ | 344,646 | |||||
Retail — 2.0% | |||||||||
AutoZone, Inc., 5.50%, 11/15/15 | 363,000 | 369,288 | |||||||
CVS Health Corp., 1.20%, 12/05/16 | 225,000 | 225,394 | |||||||
Kohl’s Corp., 4.00%, 11/01/21(a) | 83,000 | 87,472 | |||||||
Total Retail | 682,154 | ||||||||
Telecommunications — 2.2% | |||||||||
AT&T, Inc., 2.50%, 08/15/15 | 419,000 | 419,799 | |||||||
Verizon Communications, Inc., 2.50%, 09/15/16 | 325,000 | 330,371 | |||||||
Total Telecommunications | 750,170 | ||||||||
Transportation — 1.0% | |||||||||
Ryder System, Inc., 3.60%, 03/01/16 | 355,000 | 361,018 | |||||||
Total Corporate Bonds (Cost $15,704,161) | 15,638,484 | ||||||||
ASSET BACKED SECURITIES — 14.8% | |||||||||
Diversified Financial Services — 14.8% | |||||||||
Ally Auto Receivables Trust, Class A3, Series 2012-5, 0.62%, 03/15/17 | 72,464 | 72,480 | |||||||
Ally Master Owner Trust, Class A2, Series 2013-1, 1.00%, 02/15/18 | 240,000 | 240,341 | |||||||
American Express Credit Account Master Trust, Class A, Series 2013-2, 0.60%, 05/17/21@ | 300,000 | 300,829 | |||||||
AmeriCredit Automobile Receivables Trust, Class A2B, Series 2013-5, 0.56%, 03/08/17@ | 12,531 | 12,530 | |||||||
AmeriCredit Automobile Receivables Trust, Class B, Series 2013-2, 1.19%, 05/08/18 | 180,000 | 180,191 | |||||||
BA Credit Card Trust, Class A11, Series 2007-A11, 0.26%, 12/15/19@ | 295,000 | 294,122 | |||||||
Capital One Multi-Asset Execution Trust, Class A5, Series 2007-A5, 0.23%, 07/15/20@ | 525,000 | 521,820 | |||||||
CarMax Auto Owner Trust, Class A2, Series 2013-4, 0.52%, 11/15/16 | 14,491 | 14,490 | |||||||
CarMax Auto Owner Trust, Class A3, Series 2012-3, 0.52%, 07/17/17 | 107,583 | 107,567 | |||||||
Chase Issuance Trust, Class A5, Series 2012-A5, 0.59%, 08/15/17 | 640,000 | 640,018 |
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
ASSET BACKED SECURITIES (continued) | |||||||||
Diversified Financial Services (continued) | |||||||||
Citibank Credit Card Issuance Trust, Class A2, Series 2013-A2, 0.47%, 05/26/20@ | $ | 600,000 | $ | 600,587 | |||||
Discover Card Execution Note Trust, Class A2, Series 2013-A2, 0.69%, 08/15/18 | 350,000 | 350,143 | |||||||
Fifth Third Auto Trust, Class A3, Series 2013-A, 0.61%, 09/15/17 | 126,496 | 126,521 | |||||||
First National Master Note Trust, Class A, Series 2013-2, 0.72%, 10/15/19@ | 325,000 | 325,611 | |||||||
GE Equipment Midticket LLC, Class A3, Series 2012-1, 0.60%, 05/23/16 | 2,287 | 2,287 | |||||||
Honda Auto Receivables Owner Trust, Class A3, Series 2014-2, 0.77%, 03/19/18 | 335,000 | 334,545 | |||||||
Huntington Auto Trust, Class A3, Series 2012-2, 0.51%, 04/17/17 | 94,179 | 94,180 | |||||||
Hyundai Auto Receivables Trust, Class A2, Series 2014-B, 0.44%, 02/15/17 | 146,377 | 146,406 | |||||||
Nissan Auto Receivables Owner Trust, Class A3, Series 2012-B, 0.46%, 10/17/16 | 40,841 | 40,840 | |||||||
Nissan Auto Receivables Owner Trust, Class A3, Series 2013-C, 0.67%, 08/15/18 | 327,074 | 326,793 | |||||||
Toyota Auto Receivables Owner Trust, Class A3, Series 2013-B, 0.89%, 07/17/17 | 337,168 | 337,801 | |||||||
World Omni Auto Receivables Trust, Class A3, Series 2012-A, 0.64%, 02/15/17 | 29,744 | 29,745 | |||||||
World Omni Automobile Lease Securitization Trust, Class A2B, Series 2013-A, 0.51%, 05/16/16@ | 67,946 | 67,949 | |||||||
Total Asset Backed Securities (Cost $5,165,217) | 5,167,796 | ||||||||
MORTGAGE BACKED SECURITIES — 13.6% | |||||||||
Commercial Mortgage Backed Securities — 13.6% | |||||||||
Banc of America Merrill Lynch Commercial Mortgage, Inc., Class A4, Series 2005-5, 5.12%, 10/10/45@ | 211,457 | 211,619 | |||||||
Banc of America Merrill Lynch Commercial Mortgage, Inc., Class A4, Series 2005-6, 5.16%, 09/10/47@ | 337,798 | 339,586 | |||||||
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2006-T24, 5.54%, 10/12/41 | 307,427 | 319,644 |
See accompanying Notes to Financial Statements.
109
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
MORTGAGE BACKED SECURITIES (continued) | |||||||||
Commercial Mortgage Backed Securities (continued) | |||||||||
Bear Stearns Commercial Mortgage Securities Trust, Class A4A, Series 2005-T20, 5.26%, 10/12/42@ | $ | 187,685 | $ | 188,072 | |||||
CD Commercial Mortgage Trust, Class A4, Series 2005-CD1, 5.38%, 07/15/44@ | 202,540 | 202,722 | |||||||
Credit Suisse First Boston Mortgage Securities Corp., Class AJ, Series 2005-C6, 5.23%, 12/15/40@ | 255,000 | 257,110 | |||||||
DBRR Trust, Class A, Series 2013-EZ3, 1.64%, 12/18/49@‡ | 306,965 | 308,404 | |||||||
Fannie Mae Connecticut Avenue Securities, Class 1M1, Series 2014-C03, 1.39%, 07/25/24@ | 287,928 | 287,784 | |||||||
GS Mortgage Securities Trust, Class AM, Series 2006-GG6, 5.55%, 04/10/38@ | 350,000 | 355,975 | |||||||
GS Mortgage Securities Trust, Class A2, Series 2011-GC3, 3.65%, 03/10/44‡ | 347,400 | 350,358 | |||||||
Merrill Lynch Mortgage Trust, Class AM, Series 2005-CKI1, 5.46%, 11/12/37@ | 500,000 | 501,452 | |||||||
Merrill Lynch Mortgage Trust, Class A4, Series 2006-C1, 5.87%, 05/12/39@ | 415,000 | 423,964 | |||||||
Morgan Stanley Capital I Trust, Class A4, Series 2006-T21, 5.16%, 10/12/52@ | 339,080 | 340,694 | |||||||
Wachovia Bank Commercial Mortgage Trust, Class AMFX, Series 2005-C20, 5.18%, 07/15/42@ | 10,158 | 10,162 | |||||||
Wachovia Bank Commercial Mortgage Trust, Class A4, Series 2005-C21, 5.43%, 10/15/44@ | 130,683 | 130,828 | |||||||
Wachovia Bank Commercial Mortgage Trust, Class A4FL, Series 2006-C28, 0.34%, 10/15/48@‡ | 260,807 | 258,369 | |||||||
WFRBS Commercial Mortgage Trust, Class A2, Series 2011-C4, 3.45%, 06/15/44‡ | 219,530 | 223,188 | |||||||
Total Mortgage Backed Securities (Cost $4,725,786) | 4,709,931 | ||||||||
FOREIGN BONDS — 9.0% | |||||||||
Banks — 1.6% | |||||||||
Lloyds Bank PLC, 4.88%, 01/21/16 (United Kingdom) | 205,000 | 209,527 | |||||||
Royal Bank of Canada, Series G, 0.74%, 09/09/16 (Canada)@ | 350,000 | 351,244 | |||||||
Total Banks | 560,771 |
![]() | ![]() | ![]() | |||||||
Investments | Shares/ Principal | Value | |||||||
FOREIGN BONDS (continued) | |||||||||
Beverages — 1.3% | |||||||||
Anheuser-Busch InBev Finance, Inc., 0.47%, 01/27/17 (Belgium)@ | $ | 450,000 | $ | 449,321 | |||||
Chemicals — 1.2% | |||||||||
Potash Corp. of Saskatchewan, Inc., 3.75%, 09/30/15 (Canada) | 430,000 | 432,648 | |||||||
Diversified Financial Services — 0.6% | |||||||||
Nomura Holdings, Inc., 4.13%, 01/19/16 (Japan) | 60,000 | 61,001 | |||||||
Nomura Holdings, Inc., 1.74%, 09/13/16 (Japan)@ | 140,000 | 141,070 | |||||||
Total Diversified Financial Services | 202,071 | ||||||||
Mining — 1.0% | |||||||||
Barrick Gold Corp., 2.90%, 05/30/16 (Canada)(a) | 355,000 | 358,540 | |||||||
Oil & Gas — 2.2% | |||||||||
BP Capital Markets PLC, 0.70%, 11/06/15 (United Kingdom) | 375,000 | 375,329 | |||||||
Petroleos Mexicanos, 3.50%, 01/30/23 (Mexico) | 385,000 | 366,212 | |||||||
Total Oil & Gas | 741,541 | ||||||||
Telecommunications — 1.1% | |||||||||
Vodafone Group PLC, 1.63%, 03/20/17 (United Kingdom) | 370,000 | 368,669 | |||||||
Total Foreign Bonds (Cost $3,127,901) | 3,113,561 | ||||||||
MUNICIPAL BONDS — 2.2% | |||||||||
Clear Creek Independent School District, 3.00%, 02/15/16 | 125,000 | 126,611 | |||||||
County of Miami-Dade FL Aviation Revenue, Series A, 5.00%, 10/01/38 | 55,000 | 55,608 | |||||||
Gwinnett County Water & Sewerage Authority, 4.00%, 08/01/16 | 50,000 | 50,148 | |||||||
La Joya Independent School District, 5.00%, 02/15/31 | 90,000 | 92,614 | |||||||
Michigan Finance Authority, Series G-8A, 5.00%, 04/01/16 | 110,000 | 112,641 | |||||||
New Hampshire Housing Finance Authority, Series D, 4.70%, 01/01/16 | 60,000 | 61,021 | |||||||
RNR School Financing Authority, 4.00%, 09/01/15 | 160,000 | 160,919 | |||||||
Village of Hobart WI, 3.38%, 03/01/16 | 55,000 | 56,043 | |||||||
Williamson-Travis Counties Water Control & Improvement District 1G, 2.00%, 09/01/15 | 50,000 | 50,137 | |||||||
Total Municipal Bonds (Cost $765,892) | 765,742 |
See accompanying Notes to Financial Statements.
110
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares/ Principal | Value | |||||||
U.S. TREASURY NOTE — 5.3% | |||||||||
U.S. Treasury Note, 0.25%, 09/15/15 (Cost $1,860,042) | 1,860,000 | $ | 1,860,727 | ||||||
U.S. TREASURY BILL — 0.3% | |||||||||
U.S. Treasury Bill, 0.02%, 09/10/15(b) (Cost $99,974) | 100,000 | 100,004 | |||||||
MONEY MARKET FUND — 10.5% | |||||||||
JP Morgan US Government Money Market Fund – Institutional Class, 0.01%(c) (Cost $3,653,086) | 3,653,086 | 3,653,086 | |||||||
REPURCHASE AGREEMENTS — 0.8%(d) | |||||||||
Citibank NA, dated 06/30/15, due 07/01/15, 0.14%, total to be received $39,881, (collateralized by various U.S. Government Agency Obligations, 0.63% – 6.50%, 11/15/16 – 07/01/45, totaling $40,678) | $ | 39,881 | 39,881 | ||||||
Merrill Lynch Pierce Fenner & Smith Inc., dated 06/30/15, due 07/01/15, 0.14%, total to be received $225,995, (collateralized by various U.S. Government Agency Obligations, 2.18% – 6.00%, 06/01/25 – 06/20/61, totaling $230,514) | 225,994 | 225,994 | |||||||
Total Repurchase Agreements (Cost $265,875) | 265,875 | ||||||||
Total Investments — 101.4% (Cost $35,367,934) | 35,275,206 | ||||||||
Liabilities in Excess of Other Assets — (1.4)% | (492,465 | ) | |||||||
Net Assets — 100.0% | $ | 34,782,741 |
LP — Limited Partnership
PLC — Public Limited Company
@ | Variable rate instrument. The interest rate shown reflects the rate in effect at June 30, 2015. |
‡ | 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) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $258,996; the aggregate market value of the collateral held by the fund is $265,875. |
(b) | Interest rate shown reflects the discount rate at time of purchase. |
(c) | Rate shown reflects the 7-day yield as of June 30, 2015. |
(d) | Collateral received from brokers for securities lending was invested in these short-term investments. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Agriculture | 1.1 | % | ||
Auto Manufacturers | 1.2 | |||
Banks | 12.9 | |||
Beverages | 2.3 | |||
Chemicals | 2.2 | |||
Commercial Mortgage Backed Securities | 13.6 | |||
Computers | 1.1 | |||
Diversified Financial Services | 17.1 | |||
Electric | 3.7 | |||
Food | 3.4 | |||
Household Products/Wares | 1.1 | |||
Insurance | 4.6 | |||
Internet | 1.1 | |||
Machinery – Diversified | 0.1 | |||
Media | 2.2 | |||
Mining | 1.0 | |||
Municipal Bonds | 2.2 | |||
Oil & Gas | 2.2 | |||
Pharmaceuticals | 2.1 | |||
Pipelines | 2.0 | |||
Real Estate | 1.0 | |||
Retail | 2.0 | |||
Telecommunications | 3.3 | |||
Transportation | 1.0 | |||
U.S. Treasury Bill | 0.3 | |||
U.S. Treasury Note | 5.3 | |||
Money Market Fund | 10.5 | |||
Repurchase Agreements | 0.8 | |||
Total Investments | 101.4 | |||
Liabilities in Excess of Other Assets | (1.4 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
111
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)
June 30, 2015
Futures contracts outstanding as of June 30, 2015:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Type | Broker | Expiration Date | Number of Contracts | Value at Trade Date | Value at June 30, 2015 | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
2-Year U.S. Treasury Note | Jefferies & Company Inc. | September 2015 | (4) | $ | (874,700 | ) | $ | (875,750 | ) | $ | (1,050 | ) | ||||||||||||
5-Year U.S. Treasury Note | Jefferies & Company Inc. | September 2015 | 10 | 1,193,954 | 1,192,578 | (1,376 | ) | |||||||||||||||||
10-Year U.S. Treasury Note | Jefferies & Company Inc. | September 2015 | (7) | (885,849 | ) | (883,203 | ) | 2,646 | ||||||||||||||||
$ | 220 |
Cash posted as collateral to broker for futures contracts was $101,042 at June 30, 2015.
See accompanying Notes to Financial Statements.
112
ADVISORSHARES STAR GLOBAL BUY-WRITE ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
EXCHANGE TRADED FUNDS — 90.1% | |||||||||
Debt Fund — 18.3% | |||||||||
AdvisorShares Sage Core Reserves ETF† | 2,500 | $ | 248,425 | ||||||
iShares 1 – 3 Year Credit Bond ETF | 9,301 | 979,674 | |||||||
iShares 20+ Year Treasury Bond ETF | 2,728 | 320,431 | |||||||
iShares iBoxx $ High Yield Corporate Bond ETF | 10,001 | 888,089 | |||||||
iShares JPMorgan USD Emerging Markets Bond ETF | 12,308 | 1,352,895 | |||||||
SPDR Barclays High Yield Bond ETF | 12,000 | 461,160 | |||||||
SPDR Barclays International Corporate Bond ETF | 20,000 | 629,200 | |||||||
Total Debt Fund | 4,879,874 | ||||||||
Equity Fund — 71.8% | |||||||||
Consumer Discretionary Select Sector SPDR Fund | 6,089 | 465,687 | |||||||
Consumer Staples Select Sector SPDR Fund | 16,474 | 784,162 | |||||||
Energy Select Sector SPDR Fund | 7,875 | 591,885 | |||||||
Financial Select Sector SPDR Fund | 57,360 | 1,398,437 | |||||||
Health Care Select Sector SPDR Fund | 12,414 | 923,477 | |||||||
Industrial Select Sector SPDR Fund | 7,251 | 391,989 | |||||||
iShares MSCI EAFE ETF | 26,821 | 1,702,865 | |||||||
iShares MSCI Emerging Markets ETF | 30,967 | 1,226,913 | |||||||
Materials Select Sector SPDR Fund | 3,699 | 178,995 | |||||||
SPDR S&P 500 ETF Trust | 51,580 | 10,617,744 | |||||||
Technology Select Sector SPDR Fund | 13,410 | 555,174 | |||||||
Utilities Select Sector SPDR Fund | 5,357 | 222,101 | |||||||
Total Equity Fund | 19,059,429 | ||||||||
Total Exchange Traded Funds (Cost $22,491,816) | 23,939,303 | ||||||||
COMMON STOCKS — 1.5% | |||||||||
Apparel — 0.8% | |||||||||
Hanesbrands, Inc. | 6,572 | 218,979 | |||||||
Computers — 0.7% | |||||||||
Apple, Inc. | 1,485 | 186,256 | |||||||
Total Common Stocks (Cost $275,538) | 405,235 | ||||||||
MONEY MARKET FUND — 3.9% | |||||||||
BlackRock Liquidity Funds-T-Fund Portfolio – Institutional Class, 0.01%(a) (Cost $1,046,062) | 1,046,062 | 1,046,062 |
![]() | ![]() | ![]() | |||||||
Investments | Principal/ Contracts | Value | |||||||
U.S. TREASURY NOTE — 3.9% | |||||||||
U.S. Treasury Note, 4.50%, 02/15/16(b) (Cost $1,026,744) | $ | 1,000,000 | $ | 1,026,993 | |||||
Total Investments Before Written Options — 99.4% (Cost $24,840,160) | 26,417,593 | ||||||||
WRITTEN PUT OPTION — (0.0)%** | |||||||||
iShares 20+ Year Treasury Bond ETF, expiring 07/17/15, Strike Price $116.00 [Premium Received $(4,711)] | (31 | ) | (4,201 | ) | |||||
WRITTEN CALL OPTIONS — (0.1)% | |||||||||
Consumer Discretionary Select Sector SPDR Fund, expiring 07/17/15, Strike Price $79.00 | (30 | ) | (450 | ) | |||||
Industrial Select Sector SPDR Fund, expiring 07/17/15, Strike Price $57.00 | (36 | ) | (252 | ) | |||||
iShares 20+ Year Treasury Bond ETF, expiring 07/17/15, Strike Price $120.00 | (27 | ) | (2,322 | ) | |||||
iShares MSCI EAFE ETF, expiring 07/17/15, Strike Price $67.00 | (79 | ) | (869 | ) | |||||
iShares MSCI Emerging Markets ETF, expiring 07/17/15, Strike Price $41.00 | (153 | ) | (2,907 | ) | |||||
SPDR S&P 500 ETF Trust, expiring 07/17/15, Strike Price $215.00 | (232 | ) | (2,436 | ) | |||||
Utilities Select Sector SPDR Fund, expiring 07/17/15, Strike Price $44.00 | (4 | ) | (12 | ) | |||||
Total Written Call Options [Premiums Received $(64,720)] | (9,248 | ) | |||||||
Total Written Options — (0.1)% [Premiums Received $(69,431)] | (13,449 | ) | |||||||
Total Investments — 99.3% (Cost $24,770,729) | 26,404,144 | ||||||||
Other Assets in Excess of Liabilities — 0.7% | 192,577 | ||||||||
Net Assets — 100.0% | $ | 26,596,721 |
ETF — Exchange Traded Fund
† | Affiliated Company. |
** | Less than 0.05%. |
(a) | Rate shown reflects the 7-day yield as of June 30, 2015. |
(b) | All or portion of this security has been pledged as collateral for option contracts. The aggregate market value of the collateral was $1,717,381, which includes cash in the amount of $691,494 as of June 30, 2015. |
See accompanying Notes to Financial Statements.
113
ADVISORSHARES STAR GLOBAL BUY-WRITE ETF
Schedule of Investments (continued)
June 30, 2015
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Apparel | 0.8 | % | ||
Computers | 0.7 | |||
Debt Fund | 18.3 | |||
Equity Fund | 71.8 | |||
U.S. Treasury Note | 3.9 | |||
Written Call Options | (0.1 | ) | ||
Written Put Option | (0.0) ** | |||
Money Market Fund | 3.9 | |||
Total Investments | 99.3 | |||
Other Assets in Excess of Liabilities | 0.7 | |||
Net Assets | 100.0 | % |
** | Less than 0.05%. |
See accompanying Notes to Financial Statements.
114
ADVISORSHARES SUNRISE GLOBAL MULTI-STRATEGY ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
EXCHANGE TRADED FUNDS — 79.4% | |||||||||
Debt Fund — 1.0% | |||||||||
iShares 7 – 10 Year Treasury Bond ETF | 172 | $ | 18,062 | ||||||
Equity Fund — 78.4% | |||||||||
Consumer Discretionary Select Sector SPDR Fund | 3,516 | 268,904 | |||||||
Consumer Staples Select Sector SPDR Fund | 7,465 | 355,333 | |||||||
Financial Select Sector SPDR Fund | 14,359 | 350,072 | |||||||
Health Care Select Sector SPDR Fund | 3,597 | 267,581 | |||||||
Industrial Select Sector SPDR Fund | 836 | 45,194 | |||||||
Materials Select Sector SPDR Fund | 364 | 17,614 | |||||||
Technology Select Sector SPDR Fund | 2,434 | 100,768 | |||||||
Total Equity Fund | 1,405,466 | ||||||||
Total Exchange Traded Funds (Cost $1,360,971) | 1,423,528 | ||||||||
MONEY MARKET FUND — 6.4% | |||||||||
Goldman Sachs Financial Square Funds – Treasury Instruments Fund, 0.00%(a) (Cost $115,261) | 115,261 | 115,261 | |||||||
Total Investments — 85.8% (Cost $1,476,232) | 1,538,789 | ||||||||
Other Assets in Excess of Liabilities — 14.2% | 255,023 | ||||||||
Net Assets — 100.0% | $ | 1,793,812 |
ETF — Exchange Traded Fund
(a) | Rate shown reflects the 7-day yield as of June 30, 2015. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
![]() | ![]() | |||
% of Net Assets | ||||
Debt Fund | 1.0 % | |||
Equity Fund | 78.4 | |||
Money Market Fund | 6.4 | |||
Total Investments | 85.8 | |||
Other Assets in Excess of Liabilities | 14.2 | |||
Net Assets | 100.0 % |
See accompanying Notes to Financial Statements.
115
ADVISORSHARES TRIMTABS FLOAT SHRINK ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS — 99.9% | |||||||||
Advertising — 1.0% | |||||||||
Omnicom Group, Inc. | 34,358 | $ | 2,387,537 | ||||||
Aerospace/Defense — 2.9% | |||||||||
Boeing Co. (The) | 16,741 | 2,322,312 | |||||||
Northrop Grumman Corp. | 15,427 | 2,447,184 | |||||||
United Technologies Corp. | 21,130 | 2,343,951 | |||||||
Total Aerospace/Defense | 7,113,447 | ||||||||
Agriculture — 2.9% | |||||||||
Altria Group, Inc. | 48,438 | 2,369,103 | |||||||
Archer-Daniels-Midland Co. | 48,522 | 2,339,731 | |||||||
Bunge Ltd. (Bermuda) | 27,443 | 2,409,495 | |||||||
Total Agriculture | 7,118,329 | ||||||||
Apparel — 2.0% | |||||||||
NIKE, Inc., Class B | 23,775 | 2,568,176 | |||||||
VF Corp. | 33,591 | 2,342,636 | |||||||
Total Apparel | 4,910,812 | ||||||||
Beverages — 1.0% | |||||||||
Coca-Cola Enterprises, Inc. | 54,081 | 2,349,279 | |||||||
Biotechnology — 2.1% | |||||||||
Celgene Corp.* | 22,130 | 2,561,216 | |||||||
Gilead Sciences, Inc. | 20,978 | 2,456,104 | |||||||
Total Biotechnology | 5,017,320 | ||||||||
Chemicals — 2.9% | |||||||||
LyondellBasell Industries NV, Class A | 23,419 | 2,424,335 | |||||||
Monsanto Co. | 21,556 | 2,297,654 | |||||||
Westlake Chemical Corp. | 34,726 | 2,381,856 | |||||||
Total Chemicals | 7,103,845 | ||||||||
Commercial Services — 6.1% | |||||||||
Cintas Corp. | 29,173 | 2,467,744 | |||||||
Equifax, Inc. | 25,540 | 2,479,678 | |||||||
Gartner, Inc.* | 28,458 | 2,441,127 | |||||||
Global Payments, Inc. | 23,566 | 2,437,903 | |||||||
Moody’s Corp. | 22,806 | 2,462,136 | |||||||
Western Union Co. (The) | 117,414 | 2,387,027 | |||||||
Total Commercial Services | 14,675,615 | ||||||||
Computers — 3.9% | |||||||||
Apple, Inc. | 18,941 | 2,375,675 | |||||||
Computer Sciences Corp. | 37,196 | 2,441,545 | |||||||
EMC Corp. | 90,962 | 2,400,487 | |||||||
NetApp, Inc. | 73,612 | 2,323,195 | |||||||
Total Computers | 9,540,902 | ||||||||
Distribution/Wholesale — 1.0% | |||||||||
W.W. Grainger, Inc. | 9,824 | 2,324,850 |
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Diversified Financial Services — 5.0% | |||||||||
Affiliated Managers Group, Inc.* | 11,110 | $ | 2,428,646 | ||||||
Alliance Data Systems Corp.* | 8,201 | 2,394,200 | |||||||
American Express Co. | 31,318 | 2,434,035 | |||||||
Franklin Resources, Inc. | 46,776 | 2,293,427 | |||||||
Synchrony Financial* | 76,430 | 2,516,840 | |||||||
Total Diversified Financial Services | 12,067,148 | ||||||||
Electrical Components & Equipment — 2.0% | |||||||||
AMETEK, Inc. | 45,933 | 2,516,210 | |||||||
Emerson Electric Co. | 41,496 | 2,300,123 | |||||||
Total Electrical Components & Equipment | 4,816,333 | ||||||||
Electronics — 4.0% | |||||||||
Amphenol Corp., Class A | 43,678 | 2,532,013 | |||||||
Corning, Inc. | 115,461 | 2,278,046 | |||||||
Mettler-Toledo International, Inc.* | 7,319 | 2,499,146 | |||||||
Waters Corp.* | 18,513 | 2,376,699 | |||||||
Total Electronics | 9,685,904 | ||||||||
Food — 3.0% | |||||||||
Campbell Soup Co. | 52,312 | 2,492,667 | |||||||
Hershey Co. (The) | 26,654 | 2,367,675 | |||||||
Whole Foods Market, Inc. | 60,966 | 2,404,499 | |||||||
Total Food | 7,264,841 | ||||||||
Hand/Machine Tools — 1.0% | |||||||||
Stanley Black & Decker, Inc. | 23,656 | 2,489,557 | |||||||
Healthcare – Products — 4.1% | |||||||||
DENTSPLY International, Inc. | 47,849 | 2,466,616 | |||||||
QIAGEN NV (Netherlands)* | 102,398 | 2,538,446 | |||||||
Sirona Dental Systems, Inc.* | 24,804 | 2,490,818 | |||||||
St. Jude Medical, Inc. | 33,462 | 2,445,068 | |||||||
Total Healthcare – Products | 9,940,948 | ||||||||
Healthcare – Services — 2.2% | |||||||||
HCA Holdings, Inc.* | 29,895 | 2,712,075 | |||||||
MEDNAX, Inc.* | 34,059 | 2,524,112 | |||||||
Total Healthcare – Services | 5,236,187 | ||||||||
Insurance — 6.1% | |||||||||
Aflac, Inc. | 38,696 | 2,406,891 | |||||||
Arch Capital Group Ltd. (Bermuda)* | 37,420 | 2,505,644 | |||||||
Everest Re Group Ltd. (Bermuda) | 13,530 | 2,462,595 | |||||||
Reinsurance Group of America, Inc. | 25,880 | 2,455,236 | |||||||
Torchmark Corp. | 42,584 | 2,479,240 | |||||||
W.R. Berkley Corp. | 48,288 | 2,507,597 | |||||||
Total Insurance | 14,817,203 |
See accompanying Notes to Financial Statements.
116
ADVISORSHARES TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Internet — 2.1% | |||||||||
IAC/InterActiveCorp. | 32,762 | $ | 2,609,821 | ||||||
VeriSign, Inc.*(a) | 39,334 | 2,427,694 | |||||||
Total Internet | 5,037,515 | ||||||||
Iron/Steel — 0.9% | |||||||||
Reliance Steel & Aluminum Co. | 37,739 | 2,282,455 | |||||||
Lodging — 1.0% | |||||||||
Marriott International, Inc., Class A | 32,618 | 2,426,453 | |||||||
Machinery – Diversified — 1.0% | |||||||||
Rockwell Automation, Inc. | 20,082 | 2,503,020 | |||||||
Media — 5.0% | |||||||||
CBS Corp., Class B | 43,062 | 2,389,941 | |||||||
Sirius XM Holdings, Inc.*(a) | 665,500 | 2,482,315 | |||||||
Thomson Reuters Corp. | 63,854 | 2,430,922 | |||||||
Twenty-First Century Fox, Inc., Class A | 77,022 | 2,506,681 | |||||||
Viacom, Inc., Class B | 37,350 | 2,414,304 | |||||||
Total Media | 12,224,163 | ||||||||
Metal Fabricate/Hardware — 1.0% | |||||||||
Precision Castparts Corp. | 11,890 | 2,376,454 | |||||||
Miscellaneous Manufacturing — 4.0% | |||||||||
3M Co. | 15,612 | 2,408,932 | |||||||
Dover Corp. | 34,328 | 2,409,139 | |||||||
Illinois Tool Works, Inc. | 27,036 | 2,481,635 | |||||||
Parker-Hannifin Corp. | 20,656 | 2,402,912 | |||||||
Total Miscellaneous Manufacturing | 9,702,618 | ||||||||
Office/Business Equipment — 0.9% | |||||||||
Xerox Corp. | 212,020 | 2,255,893 | |||||||
Oil & Gas — 3.1% | |||||||||
Marathon Petroleum Corp. | 47,002 | 2,458,675 | |||||||
Valero Energy Corp. | 42,142 | 2,638,088 | |||||||
Western Refining, Inc. | 53,596 | 2,337,858 | |||||||
Total Oil & Gas | 7,434,621 | ||||||||
Oil & Gas Services — 3.9% | |||||||||
Cameron International Corp.* | 44,732 | 2,342,615 | |||||||
FMC Technologies, Inc.* | 58,486 | 2,426,584 | |||||||
Oceaneering International, Inc. | 50,478 | 2,351,770 | |||||||
Schlumberger Ltd. | 26,053 | 2,245,508 | |||||||
Total Oil & Gas Services | 9,366,477 | ||||||||
Pharmaceuticals — 3.0% | |||||||||
Pfizer, Inc. | 71,079 | 2,383,279 | |||||||
VCA, Inc.* | 46,760 | 2,543,977 | |||||||
Zoetis, Inc. | 49,803 | 2,401,501 | |||||||
Total Pharmaceuticals | 7,328,757 |
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Retail — 8.0% | |||||||||
Dillard’s, Inc., Class A | 23,167 | $ | 2,436,937 | ||||||
Dollar General Corp. | 32,110 | 2,496,231 | |||||||
Gap, Inc. (The) | 61,863 | 2,361,311 | |||||||
Home Depot, Inc. (The) | 22,537 | 2,504,537 | |||||||
Lowe’s Cos., Inc. | 34,912 | 2,338,057 | |||||||
Macy’s, Inc. | 35,969 | 2,426,828 | |||||||
McDonald’s Corp. | 24,884 | 2,365,722 | |||||||
TJX Cos., Inc. (The) | 38,263 | 2,531,863 | |||||||
Total Retail | 19,461,486 | ||||||||
Semiconductors — 4.8% | |||||||||
Intel Corp. | 74,978 | 2,280,456 | |||||||
NVIDIA Corp. | 116,072 | 2,334,208 | |||||||
QUALCOMM, Inc. | 36,099 | 2,260,880 | |||||||
Texas Instruments, Inc. | 44,772 | 2,306,206 | |||||||
Xilinx, Inc. | 53,172 | 2,348,075 | |||||||
Total Semiconductors | 11,529,825 | ||||||||
Software — 3.0% | |||||||||
Fiserv, Inc.* | 31,132 | 2,578,663 | |||||||
Microsoft Corp. | 54,270 | 2,396,021 | |||||||
VMware, Inc., Class A *(a) | 27,584 | 2,365,052 | |||||||
Total Software | 7,339,736 | ||||||||
Telecommunications — 2.0% | |||||||||
Cisco Systems, Inc. | 86,466 | 2,374,356 | |||||||
Juniper Networks, Inc. | 90,940 | 2,361,712 | |||||||
Total Telecommunications | 4,736,068 | ||||||||
Toys/Games/Hobbies — 1.0% | |||||||||
Hasbro, Inc. | 33,632 | 2,515,337 | |||||||
Transportation — 2.0% | |||||||||
Expeditors International of Washington, Inc. | 52,491 | 2,420,097 | |||||||
United Parcel Service, Inc., Class B | 24,938 | 2,416,742 | |||||||
Total Transportation | 4,836,839 | ||||||||
Total Common Stocks (Cost $243,637,445) | 242,217,774 | ||||||||
MONEY MARKET FUND — 0.1% | |||||||||
Wells Fargo Advantage Government Money Market Fund – Institutional Class, 0.01%(b) (Cost $268,307) | 268,307 | 268,307 |
See accompanying Notes to Financial Statements.
117
ADVISORSHARES TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
REPURCHASE AGREEMENTS — 0.3%(c) | |||||||||
Citibank NA, dated 06/30/15, due 07/01/15, 0.14%, total to be received $113,926, (collateralized by various U.S. Government Agency Obligations, 0.63% – 6.50%, 11/15/16 – 07/01/45, totaling $116,204) | $ | 113,926 | $ | 113,926 | |||||
HSBC Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.12%, total to be received $145,583, (collateralized by various U.S. Government Agency Obligations, 2.50% – 6.50%, 07/01/18 – 07/01/45, totaling $148,495) | 145,583 | 145,583 | |||||||
Mizuho Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.14%, total to be received $250,001, (collateralized by various U.S. Government Agency Obligations, 0.00% – 8.50%, 06/13/16 – 04/20/44, totaling $255,000) | 250,000 | 250,000 | |||||||
Morgan Stanley & Co. LLC, dated 06/30/15, due 07/01/15, 0.09%, total to be received $250,001, (collateralized by various U.S. Government Agency Obligations, 0.75% – 9.50%, 02/16/16 – 05/01/45, totaling $255,000) | 250,000 | 250,000 | |||||||
Total Repurchase Agreements (Cost $759,509) | 759,509 | ||||||||
Total Investments — 100.3% (Cost $244,665,261) | 243,245,590 | ||||||||
Liabilities in Excess of Other Assets — (0.3)% | (773,467 | ) | |||||||
Net Assets — 100.0% | $242,472,123 |
* | Non-income producing security. |
(a) | All or a portion of security is on loan. The aggregate market value of the securities on loan is $3,007,503; the aggregate market value of the collateral held by the fund is $3,071,044. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $2,311,535. |
(b) | Rate shown reflects the 7-day yield as of June 30, 2015. |
(c) | Collateral received from brokers for securities lending was invested in these short-term investments. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
![]() | ![]() | |||
% of Net Assets | ||||
Advertising | 1.0 | % | ||
Aerospace/Defense | 2.9 | |||
Agriculture | 2.9 | |||
Apparel | 2.0 | |||
Beverages | 1.0 | |||
Biotechnology | 2.1 | |||
Chemicals | 2.9 | |||
Commercial Services | 6.1 | |||
Computers | 3.9 | |||
Distribution/Wholesale | 1.0 | |||
Diversified Financial Services | 5.0 | |||
Electrical Components & Equipment | 2.0 | |||
Electronics | 4.0 | |||
Food | 3.0 | |||
Hand/Machine Tools | 1.0 | |||
Healthcare – Products | 4.1 | |||
Healthcare – Services | 2.2 | |||
Insurance | 6.1 | |||
Internet | 2.1 | |||
Iron/Steel | 0.9 | |||
Lodging | 1.0 | |||
Machinery – Diversified | 1.0 | |||
Media | 5.0 | |||
Metal Fabricate/Hardware | 1.0 | |||
Miscellaneous Manufacturing | 4.0 | |||
Office/Business Equipment | 0.9 | |||
Oil & Gas | 3.1 | |||
Oil & Gas Services | 3.9 | |||
Pharmaceuticals | 3.0 | |||
Retail | 8.0 | |||
Semiconductors | 4.8 | |||
Software | 3.0 | |||
Telecommunications | 2.0 | |||
Toys/Games/Hobbies | 1.0 | |||
Transportation | 2.0 | |||
Money Market Fund | 0.1 | |||
Repurchase Agreements | 0.3 | |||
Total Investments | 100.3 | |||
Liabilities in Excess of Other Assets | (0.3 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
118
ADVISORSHARES WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
COMMON STOCKS — 95.6% | |||||||||
Apparel — 2.9% | |||||||||
LVMH Moet Hennessy Louis Vuitton SE (France)(a) | 12,654 | $ | 444,788 | ||||||
Biotechnology — 3.7% | |||||||||
CSL Ltd. (Australia)(a) | 17,139 | 570,729 | |||||||
Chemicals — 3.6% | |||||||||
Novozymes A/S (Denmark)(a)(b) | 11,891 | 564,704 | |||||||
Commercial Services — 6.8% | |||||||||
Experian PLC (Ireland)(a)(b) | 33,465 | 613,079 | |||||||
SGS SA (Switzerland)(a)(b) | 24,132 | 437,996 | |||||||
Total Commercial Services | 1,051,075 | ||||||||
Cosmetics/Personal Care — 5.1% | |||||||||
Svenska Cellulosa AB SCA (Sweden)(a)(b) | 17,189 | 439,351 | |||||||
Unicharm Corp. (Japan)(a)(b) | 72,500 | 346,550 | |||||||
Total Cosmetics/Personal Care | 785,901 | ||||||||
Diversified Financial Services — 4.6% | |||||||||
Lazard Ltd., Class A | 12,848 | 722,572 | |||||||
Electronics — 3.8% | |||||||||
Sensata Technologies Holding N.V. (Netherlands)* | 11,284 | 595,118 | |||||||
Food — 10.8% | |||||||||
Chr. Hansen Holding A/S (Denmark)(a) | 29,746 | 728,777 | |||||||
Nestle SA (Switzerland)(a) | 9,506 | 685,953 | |||||||
Shoprite Holdings Ltd. (South Africa)(a)(b) | 18,699 | 269,640 | |||||||
Total Food | 1,684,370 | ||||||||
Food Service — 1.9% | |||||||||
Compass Group PLC (United Kingdom)(a)(b) | 18,100 | 302,994 | |||||||
Healthcare – Products — 2.6% | |||||||||
Sysmex Corp. (Japan)(a) | 13,793 | 411,031 | |||||||
Healthcare – Services — 3.1% | |||||||||
ICON PLC (Ireland)* | 7,124 | 479,445 | |||||||
Household Products/Wares — 4.0% | |||||||||
Reckitt Benckiser Group PLC (United Kingdom)(a)(b) | 35,651 | 618,901 | |||||||
Insurance — 4.0% | |||||||||
ACE Ltd. (Switzerland) | 6,160 | 626,349 | |||||||
Internet — 5.0% | |||||||||
Tencent Holdings Ltd. (China)(a) | 29,600 | 593,480 | |||||||
Yandex N.V., Class A (Netherlands)* | 12,392 | 188,606 | |||||||
Total Internet | 782,086 | ||||||||
Machinery – Diversified — 3.5% | |||||||||
FANUC Corp. (Japan)(a) | 15,691 | 536,789 |
![]() | ![]() | ![]() | |||||||
Investments | Shares/ Principal | Value | |||||||
COMMON STOCKS (continued) | |||||||||
Oil & Gas Services — 2.7% | |||||||||
Core Laboratories N.V. (Netherlands)(b) | 3,628 | $ | 413,737 | ||||||
Pharmaceuticals — 4.5% | |||||||||
Novo Nordisk A/S (Denmark)(a) | 12,813 | 701,640 | |||||||
Retail — 5.8% | |||||||||
Inditex SA (Spain)(a) | 24,099 | 391,127 | |||||||
Swatch Group AG (The) (Switzerland)(a)(b) | 12,096 | 234,910 | |||||||
Wal-Mart de Mexico SAB de CV (Mexico)(a) | 11,576 | 282,107 | |||||||
Total Retail | 908,144 | ||||||||
Semiconductors — 13.6% | |||||||||
ARM Holdings PLC (United Kingdom)(a) | 11,298 | 556,652 | |||||||
ASML Holding N.V. (Netherlands)(c) | 6,286 | 654,561 | |||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan)(a) | 39,425 | 895,342 | |||||||
Total Semiconductors | 2,106,555 | ||||||||
Transportation — 3.6% | |||||||||
Canadian Pacific Railway Ltd. (Canada) | 3,480 | 557,600 | |||||||
Total Common Stocks (Cost $12,912,057) | 14,864,528 | ||||||||
MONEY MARKET FUND — 4.2% | |||||||||
Invesco Government & Agency Portfolio – Private Investment Class, 0.04%(d) (Cost $651,100) | 651,100 | 651,100 | |||||||
REPURCHASE AGREEMENTS — 15.7%(e) | |||||||||
Citibank NA, dated 06/30/15, due 07/01/15, 0.14%, total to be received $366,110, (collateralized by various U.S. Government Agency Obligations, 0.63% – 6.50%, 11/15/16 – 07/01/45, totaling $373,431) | $ | 366,109 | 366,109 | ||||||
HSBC Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.10%, total to be received $568,081, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.38%, 07/15/15 – 01/15/37, totaling $579,443) | 568,079 | 568,079 |
See accompanying Notes to Financial Statements.
119
ADVISORSHARES WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments (continued)
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Principal | Value | |||||||
REPURCHASE AGREEMENTS (continued) | |||||||||
Mizuho Securities USA, Inc., dated 06/30/15, due 07/01/15, 0.14%, total to be received $568,081, (collateralized by various U.S. Government Agency Obligations, 0.00% – 8.50%, 06/13/16 – 04/20/44, totaling $579,441) | $ | 568,079 | $ | 568,079 | |||||
Morgan Stanley & Co. LLC, dated 06/30/15, due 07/01/15, 0.09%, total to be received $568,080 (collateralized by various U.S. Government Agency Obligations, 0.75% – 9.50%, 02/16/16 – 05/01/45, totaling $579,441) | 568,079 | 568,079 | |||||||
RBC Capital Markets LLC, dated 06/30/15, due 07/01/15, 0.10%, total to be received $370,374, (collateralized by various U.S. Government Agency Obligations, 2.38% – 6.50%, 03/01/19 – 02/20/65, totaling $377,780) | 370,373 | 370,373 | |||||||
Total Repurchase Agreements (Cost $2,440,719) | 2,440,719 | ||||||||
Total Investments — 115.5% (Cost $16,003,876) | 17,956,347 | ||||||||
Liabilities in Excess of Other Assets — (15.5)% | (2,412,849 | ) | |||||||
Net Assets — 100.0% | $ | 15,543,498 |
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 $2,384,176; the aggregate market value of the collateral held by the fund is $2,440,719. |
(c) | Registered Shares. |
(d) | Rate shown reflects the 7-day yield as of June 30, 2015. |
(e) | Collateral received from brokers for securities lending was invested in these short-term investments. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
![]() | ![]() | |||
% of Net Assets | ||||
Apparel | 2.9 | % | ||
Biotechnology | 3.7 | |||
Chemicals | 3.6 | |||
Commercial Services | 6.8 | |||
Cosmetics/Personal Care | 5.1 | |||
Diversified Financial Services | 4.6 | |||
Electronics | 3.8 | |||
Food | 10.8 | |||
Food Service | 1.9 | |||
Healthcare – Products | 2.6 | |||
Healthcare – Services | 3.1 | |||
Household Products/Wares | 4.0 | |||
Insurance | 4.0 | |||
Internet | 5.0 | |||
Machinery – Diversified | 3.5 | |||
Oil & Gas Services | 2.7 | |||
Pharmaceuticals | 4.5 | |||
Retail | 5.8 | |||
Semiconductors | 13.6 | |||
Transportation | 3.6 | |||
Money Market Fund | 4.2 | |||
Repurchase Agreements | 15.7 | |||
Total Investments | 115.5 | |||
Liabilities in Excess of Other Assets | (15.5 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
120
ADVISORSHARES YIELDPRO ETF
Schedule of Investments
June 30, 2015
![]() | ![]() | ![]() | |||||||
Investments | Shares | Value | |||||||
EXCHANGE TRADED FUNDS — 98.8% | |||||||||
Debt Fund — 98.8% | |||||||||
iShares 0 – 5 Year High Yield Corporate Bond ETF | 71,371 | $ | 3,470,058 | ||||||
PIMCO 0 – 5 Year High Yield Corporate Bond Index Exchange-Traded Fund | 34,427 | 3,438,224 | |||||||
SPDR Barclays Short Term Corporate Bond ETF | 239,750 | 7,336,350 | |||||||
SPDR Nuveen Barclays Municipal Bond ETF | 221,476 | 5,253,411 | |||||||
Vanguard Short-Term Bond ETF | 96,047 | 7,702,009 | |||||||
Vanguard Short-Term Corporate Bond ETF | 87,533 | 6,965,876 | |||||||
Total Exchange Traded Funds (Cost $34,360,900) | 34,165,928 | ||||||||
MONEY MARKET FUND — 1.4% | |||||||||
Wells Fargo Advantage Government Money Market Fund – Institutional Class, 0.01%(a) (Cost $492,809) | 492,809 | 492,809 | |||||||
Total Investments — 100.2% (Cost $34,853,709) | 34,658,737 | ||||||||
Liabilities in Excess of Other Assets — (0.2)% | (60,755 | ) | |||||||
Net Assets — 100.0% | $ | 34,597,982 |
ETF — Exchange Traded Fund
(a) | Rate shown reflects the 7-day yield as of June 30, 2015. |
SUMMARY OF SCHEDULE OF INVESTMENTS
![]() | ![]() | |||
% of Net Assets | ||||
Debt Fund | 98.8 | % | ||
Money Market Fund | 1.4 | |||
Total Investments | 100.2 | |||
Liabilities in Excess of Other Assets | (0.2 | ) | ||
Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
121
![]() | ![]() | ![]() | ![]() | |||||||||
AdvisorShares Accuvest Global Long Short ETF | AdvisorShares Athena High Dividend ETF | AdvisorShares EquityPro ETF | ||||||||||
ASSETS | ||||||||||||
Investments, at Cost: | $ | 13,645,530 | $ | 16,242,320 | $ | 19,799,840 | ||||||
Repurchase Agreements, at Cost (Note 3) | — | 2,000,530 | 2,357,879 | |||||||||
Total Cost of Investments | 13,645,530 | 18,242,850 | 22,157,719 | |||||||||
Investments, at Market Value (including securities on loan) (Note 2)(a) | 13,443,823 | 15,234,533 | 19,179,285 | |||||||||
Repurchase Agreements, at Market Value (Note 3) | — | 2,000,530 | 2,357,879 | |||||||||
Total Market Value of Investments | 13,443,823 | 17,235,063 | 21,537,164 | |||||||||
Cash | 47,392 | 3,919 | — | |||||||||
Cash collateral held at brokers | 367,724 | — | — | |||||||||
Unrealized Appreciation on Swaps Contracts | 147,769 | — | — | |||||||||
Dividends and Interest Receivable | 64,830 | 69,537 | 55,025 | |||||||||
Receivable from Securities Sold | — | — | — | |||||||||
Reclaim Receivable | — | 529 | 182 | |||||||||
Due from Investment Advisor | — | — | — | |||||||||
Prepaid CCO Fees | 188 | 1 | 225 | |||||||||
Prepaid Expenses | 7,684 | 4,510 | 6,345 | |||||||||
Total Assets | 14,079,410 | 17,313,559 | 21,598,941 | |||||||||
LIABILITIES | ||||||||||||
Unrealized Depreciation on Swaps Contracts | 13,111 | — | — | |||||||||
Interest Payable | 113,496 | — | — | |||||||||
Advisory Payable | 10,092 | 13,395 | 17,910 | |||||||||
Trustee Fees Payable | 750 | 749 | 735 | |||||||||
Payable for Securities Purchased | — | — | — | |||||||||
Cash collateral for securities on loan | — | 2,000,530 | 2,357,879 | |||||||||
Payable to Global Echo Foundation | — | — | — | |||||||||
Accrued Expenses | 49,566 | 34,133 | 43,482 | |||||||||
Total Liabilities | 187,015 | 2,048,807 | 2,420,006 | |||||||||
NET ASSETS | $ | 13,892,395 | $ | 15,264,752 | $ | 19,178,935 | ||||||
COMPONENTS OF NET ASSETS | ||||||||||||
Capital Stock at Zero Par Value | $ | 27,753,377 | $ | 18,490,576 | $ | 18,325,138 | ||||||
Undistributed Net Investment Income (Loss) | — | 394 | 254,396 | |||||||||
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, foreign currency transactions, futures and options written | (13,793,933 | ) | (2,218,431 | ) | 1,219,956 | |||||||
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures and foreign currency translations | (67,049 | ) | (1,007,787 | ) | (620,555 | ) | ||||||
NET ASSETS | $ | 13,892,395 | $ | 15,264,752 | $ | 19,178,935 | ||||||
SHARES ISSUED AND OUTSTANDING | ||||||||||||
Shares Outstanding (Unlimited Shares Authorized) | 700,000 | 800,000 | 625,000 | |||||||||
Net Asset Value (NAV) Per Share | $ | 19.85 | $ | 19.08 | $ | 30.69 | ||||||
(a) Market value of securities on loan | $ | — | $ | 1,960,360 | $ | 2,305,926 |
See accompanying Notes to Financial Statements.
122
ADVISORSHARES TRUST
Statements of Assets and Liabilities
June 30, 2015
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||
AdvisorShares Gartman Gold/Euro ETF (Consolidated) | AdvisorShares Gartman Gold/Yen ETF (Consolidated) | AdvisorShares Global Echo ETF | AdvisorShares Madrona Domestic ETF | AdvisorShares Madrona Global Bond ETF | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Investments, at Cost: | $ | 11,026,789 | $ | 15,460,955 | $ | 7,389,112 | $ | 28,432,621 | $ | 28,375,381 | ||||||||||||||
Repurchase Agreements, at Cost (Note 3) | — | — | 179,836 | 769,212 | 8,327,697 | |||||||||||||||||||
Total Cost of Investments | 11,026,789 | 15,460,955 | 7,568,948 | 29,201,833 | 36,703,078 | |||||||||||||||||||
Investments, at Market Value (including securities on loan) (Note 2)(a) | 11,026,789 | 15,460,955 | 7,855,495 | 31,605,579 | 28,139,529 | |||||||||||||||||||
Repurchase Agreements, at Market Value (Note 3) | — | — | 179,836 | 769,212 | 8,327,697 | |||||||||||||||||||
Total Market Value of Investments | 11,026,789 | 15,460,955 | 8,035,331 | 32,374,791 | 36,467,226 | |||||||||||||||||||
Cash | — | — | — | 2,991 | — | |||||||||||||||||||
Cash collateral held at brokers | 5,757,933 | 7,591,526 | — | — | — | |||||||||||||||||||
Unrealized Appreciation on Swaps Contracts | — | — | — | — | — | |||||||||||||||||||
Dividends and Interest Receivable | — | — | 21,784 | 27,382 | 6,216 | |||||||||||||||||||
Receivable from Securities Sold | — | — | 97,320 | — | — | |||||||||||||||||||
Reclaim Receivable | — | — | — | — | — | |||||||||||||||||||
Due from Investment Advisor | 167 | — | — | — | — | |||||||||||||||||||
Prepaid CCO Fees | 247 | 213 | — | 269 | 256 | |||||||||||||||||||
Prepaid Expenses | 10,088 | 10,149 | — | 7,170 | 7,181 | |||||||||||||||||||
Total Assets | 16,795,224 | 23,062,843 | 8,154,435 | 32,412,603 | 36,480,879 | |||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Unrealized Depreciation on Swaps Contracts | — | — | — | — | — | |||||||||||||||||||
Interest Payable | — | — | — | — | — | |||||||||||||||||||
Advisory Payable | — | 155 | 7,206 | 17,124 | 11,974 | |||||||||||||||||||
Trustee Fees Payable | 746 | 750 | — | 732 | 735 | |||||||||||||||||||
Payable for Securities Purchased | — | — | 105,901 | — | — | |||||||||||||||||||
Cash collateral for securities on loan | — | — | 179,836 | 769,212 | 8,327,697 | |||||||||||||||||||
Payable to Global Echo Foundation | — | — | 2,620 | — | — | |||||||||||||||||||
Accrued Expenses | 36,623 | 40,285 | — | 51,044 | 44,754 | |||||||||||||||||||
Total Liabilities | 37,369 | 41,190 | 295,563 | 838,112 | 8,385,160 | |||||||||||||||||||
NET ASSETS | $ | 16,757,855 | $ | 23,021,653 | $ | 7,858,872 | $ | 31,574,491 | $ | 28,095,719 | ||||||||||||||
COMPONENTS OF NET ASSETS | ||||||||||||||||||||||||
Capital Stock at Zero Par Value | $ | 16,543,043 | $ | 22,850,353 | $ | 7,335,990 | $ | 30,094,165 | $ | 28,908,860 | ||||||||||||||
Undistributed Net Investment Income (Loss) | — | — | — | 25,582 | 44 | |||||||||||||||||||
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, foreign currency transactions, futures and options written | 202,189 | 579,475 | 56,499 | (1,718,214 | ) | (577,333 | ) | |||||||||||||||||
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures and foreign currency translations | 12,623 | (408,175 | ) | 466,383 | 3,172,958 | (235,852 | ) | |||||||||||||||||
NET ASSETS | $ | 16,757,855 | $ | 23,021,653 | $ | 7,858,872 | $ | 31,574,491 | $ | 28,095,719 | ||||||||||||||
SHARES ISSUED AND OUTSTANDING | ||||||||||||||||||||||||
Shares Outstanding (Unlimited Shares Authorized) | 1,275,000 | 1,750,000 | 125,000 | 725,000 | 1,125,000 | |||||||||||||||||||
Net Asset Value (NAV) Per Share | $ | 13.14 | $ | 13.16 | $ | 62.87 | $ | 43.55 | $ | 24.97 | ||||||||||||||
(a) Market value of securities on loan | $ | — | $ | — | $ | 280,465 | $ | 905,203 | $ | 8,092,592 |
See accompanying Notes to Financial Statements.
123
ADVISORSHARES TRUST
Statements of Assets and Liabilities
June 30, 2015
![]() | ![]() | ![]() | ![]() | |||||||||
AdvisorShares Madrona International ETF | AdvisorShares Meidell Tactical Advantage ETF | AdvisorShares Morgan Creek Global Tactical ETF(1) | ||||||||||
ASSETS | ||||||||||||
Investments, at Cost: | $ | 19,663,714 | $ | 16,679,427 | $ | 12,380,704 | ||||||
Repurchase Agreements, at Cost (Note 3) | 2,436,360 | 4,117,585 | 1,842,084 | |||||||||
Investments in Affiliates, at Cost (Note 9) | — | — | — | |||||||||
Total Cost of Investments | 22,100,074 | 20,797,012 | 14,222,788 | |||||||||
Investments, at Market Value (including securities on loan) (Note 2)(a) | 19,335,006 | 16,973,513 | 12,328,647 | |||||||||
Repurchase Agreements, at Market Value (Note 3) | 2,436,360 | 4,117,585 | 1,842,084 | |||||||||
Investments in Affiliates, at Market Value (Note 9) | — | — | — | |||||||||
Total Market Value of Investments | 21,771,366 | 21,091,098 | 14,170,731 | |||||||||
Cash . | 310 | — | — | |||||||||
Dividends and Interest Receivable | 71,751 | 44,282 | 17,645 | |||||||||
Reclaim Receivable | 8,327 | — | — | |||||||||
Cash collateral held at brokers | — | — | — | |||||||||
Receivable from Securities Sold | — | — | — | |||||||||
Due from Investment Advisor | — | — | 5,093 | |||||||||
Prepaid CCO Fees | 227 | 215 | 180 | |||||||||
Prepaid Expenses | 7,121 | 5,333 | 9,738 | |||||||||
Total Assets | 21,859,102 | 21,140,928 | 14,203,387 | |||||||||
LIABILITIES | ||||||||||||
Cash collateral for securities on loan | 2,436,360 | 4,117,585 | 1,842,084 | |||||||||
Advisory Payable | 5,229 | 9,950 | — | |||||||||
Trustee Fees Payable | 744 | 746 | 750 | |||||||||
Unrealized Depreciation on Swaps Contracts | — | — | — | |||||||||
Securities Sold, Not Yet Purchased(b) | — | — | — | |||||||||
Payable for Securities Purchased | — | — | — | |||||||||
Capital Shares Payable | — | — | — | |||||||||
CCO Fee Payable | — | — | — | |||||||||
Accrued Expenses | 52,102 | 40,896 | 51,591 | |||||||||
Total Liabilities | 2,494,435 | 4,169,177 | 1,894,425 | |||||||||
NET ASSETS | $ | 19,364,667 | $ | 16,971,751 | $ | 12,308,962 | ||||||
COMPONENTS OF NET ASSETS | ||||||||||||
Capital Stock at Zero Par Value | $ | 22,760,567 | $ | 17,271,621 | $ | 31,442,884 | ||||||
Undistributed Net Investment Income (Loss) | 162,987 | 64,848 | 82,968 | |||||||||
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, foreign currency transactions, futures and options written | (3,230,179 | ) | (658,804 | ) | (19,164,833 | ) | ||||||
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures and foreign currency translations | (328,708 | ) | 294,086 | (52,057 | ) | |||||||
NET ASSETS | $ | 19,364,667 | $ | 16,971,751 | $ | 12,308,962 | ||||||
SHARES ISSUED AND OUTSTANDING | ||||||||||||
Shares Outstanding (Unlimited Shares Authorized) | 700,000 | 550,000 | 500,000 | |||||||||
Net Asset Value (NAV) Per Share | $ | 27.66 | $ | 30.86 | $ | 24.62 | ||||||
(a) Market value of securities on loan | $ | 2,356,217 | $ | 4,026,607 | $ | 1,798,342 | ||||||
(b) Proceeds Received from Securities Sold, Not Yet Purchased | $ | — | $ | — | $ | — |
(1) | Formerly known as, AdvisorShares Cambria Global Tactical ETF. |
See accompanying Notes to Financial Statements.
124
ADVISORSHARES TRUST
Statements of Assets and Liabilities
June 30, 2015
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||
AdvisorShares Newfleet Multi-Sector Income ETF | AdvisorShares Pacific Asset Enhanced Floating Rate ETF | AdvisorShares Peritus High Yield ETF | AdvisorShares Pring Turner Business Cycle ETF | AdvisorShares QAM Equity Hedge ETF | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Investments, at Cost: | $ | 217,844,051 | $ | 28,829,414 | $ | 397,218,406 | $ | 4,343,993 | $ | 6,537,673 | ||||||||||||||
Repurchase Agreements, at Cost (Note 3) | 753,918 | — | 51,883,351 | 350,292 | — | |||||||||||||||||||
Investments in Affiliates, at Cost (Note 9) | — | — | — | — | 350,000 | |||||||||||||||||||
Total Cost of Investments | 218,597,969 | 28,829,414 | 449,101,757 | 4,694,285 | 6,887,673 | |||||||||||||||||||
Investments, at Market Value (including securities on loan) (Note 2)(a) | 216,057,464 | 28,652,249 | 372,542,319 | 4,418,644 | 6,802,294 | |||||||||||||||||||
Repurchase Agreements, at Market Value (Note 3) | 753,918 | — | 51,883,351 | 350,292 | — | |||||||||||||||||||
Investments in Affiliates, at Market Value (Note 9) | — | — | — | — | 347,795 | |||||||||||||||||||
Total Market Value of Investments | 216,811,382 | 28,652,249 | 424,425,670 | 4,768,936 | 7,150,089 | |||||||||||||||||||
Cash | 1,429,639 | 14,788 | 1,954,493 | — | 9,380 | |||||||||||||||||||
Dividends and Interest Receivable | 954,601 | 126,281 | 8,142,320 | 7,071 | 9,782 | |||||||||||||||||||
Reclaim Receivable | — | — | — | 113 | — | |||||||||||||||||||
Cash collateral held at brokers | — | — | — | — | 596,891 | |||||||||||||||||||
Receivable from Securities Sold | 244,237 | 1,256 | 7,721,905 | — | 92,318 | |||||||||||||||||||
Due from Investment Advisor | — | — | — | 3,137 | 1,544 | |||||||||||||||||||
Prepaid CCO Fees | 962 | — | 1,139 | 161 | 170 | |||||||||||||||||||
Prepaid Expenses | 6,458 | 47,950 | 70,076 | 5,164 | 7,591 | |||||||||||||||||||
Total Assets | 219,447,279 | 28,842,524 | 442,315,603 | 4,784,582 | 7,867,765 | |||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Cash collateral for securities on loan | 753,918 | — | 51,883,351 | 350,292 | — | |||||||||||||||||||
Advisory Payable | 103,844 | 13,713 | 362,370 | — | — | |||||||||||||||||||
Trustee Fees Payable | 559 | 747 | 328 | 759 | 756 | |||||||||||||||||||
Unrealized Depreciation on Swaps Contracts . | — | 2,712 | — | — | — | |||||||||||||||||||
Securities Sold, Not Yet Purchased(b) | — | — | — | — | 563,007 | |||||||||||||||||||
Payable for Securities Purchased | 2,571,055 | 1,500,000 | 7,892,500 | — | 92,454 | |||||||||||||||||||
Capital Shares Payable | — | — | 6,111,497 | — | — | |||||||||||||||||||
CCO Fee Payable | — | 160 | — | — | — | |||||||||||||||||||
Accrued Expenses | 77,097 | 13,580 | 74,654 | 40,613 | 40,906 | |||||||||||||||||||
Total Liabilities | 3,506,473 | 1,530,912 | 66,324,700 | 391,664 | 697,123 | |||||||||||||||||||
NET ASSETS | $ | 215,940,806 | $ | 27,311,612 | $ | 375,990,903 | $ | 4,392,918 | $ | 7,170,642 | ||||||||||||||
COMPONENTS OF NET ASSETS | ||||||||||||||||||||||||
Capital Stock at Zero Par Value | $ | 219,059,234 | $ | 27,488,348 | $ | 521,065,893 | $ | 4,730,190 | $ | 6,874,003 | ||||||||||||||
Undistributed Net Investment Income (Loss) | 46,112 | 18,971 | 1,073,647 | 22,133 | (29,206 | ) | ||||||||||||||||||
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, foreign currency transactions, futures and options written | (1,377,953 | ) | (15,830 | ) | (121,472,550 | ) | (434,056 | ) | 29,829 | |||||||||||||||
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures and foreign currency translations | (1,786,587 | ) | (179,877 | ) | (24,676,087 | ) | 74,651 | 296,016 | ||||||||||||||||
NET ASSETS | $ | 215,940,806 | $ | 27,311,612 | $ | 375,990,903 | $ | 4,392,918 | $ | 7,170,642 | ||||||||||||||
SHARES ISSUED AND OUTSTANDING | ||||||||||||||||||||||||
Shares Outstanding (Unlimited Shares Authorized) | 4,400,000 | 550,000 | 9,250,000 | 175,000 | 250,000 | |||||||||||||||||||
Net Asset Value (NAV) Per Share | $ | 49.08 | $ | 49.66 | $ | 40.65 | $ | 25.10 | $ | 28.68 | ||||||||||||||
(a) Market value of securities on loan | $ | 1,376,040 | $ | — | $ | 57,428,728 | $ | 340,699 | $ | — | ||||||||||||||
(b) Proceeds Received from Securities Sold, Not Yet Purchased | $ | — | $ | — | $ | — | $ | — | $ | 596,607 |
See accompanying Notes to Financial Statements.
125
ADVISORSHARES TRUST
Statements of Assets and Liabilities
June 30, 2015
![]() | ![]() | ![]() | ||||||
AdvisorShares Ranger Equity Bear ETF | AdvisorShares Sage Core Reserves ETF | |||||||
ASSETS | ||||||||
Investments, at Cost: | $ | 12,574,072 | $ | 35,102,059 | ||||
Repurchase Agreements, at Cost (Note 3) | — | 265,875 | ||||||
Investments in Affiliates, at Cost (Note 9) | 29,997,150 | — | ||||||
Total Cost of Investments | 42,571,222 | 35,367,934 | ||||||
Investments, at Market Value (including securities on loan) (Note 2)(a) | 12,574,072 | 35,009,331 | ||||||
Repurchase Agreements, at Market Value (Note 3) | — | 265,875 | ||||||
Investments in Affiliates, at Market Value (Note 9) | 29,811,000 | — | ||||||
Total Market Value of Investments | 42,385,072 | 35,275,206 | ||||||
Cash | 76,109,147 | — | ||||||
Cash collateral held at brokers | 126,869,695 | 101,042 | ||||||
Receivable from Securities Sold | 11,496,292 | — | ||||||
Dividends and Interest Receivable | 201 | 187,091 | ||||||
Capital Shares Receivable | — | — | ||||||
Reclaim Receivable | — | — | ||||||
Prepaid CCO Fees | 651 | 264 | ||||||
Prepaid Expenses | 8,874 | 9,775 | ||||||
Total Assets | 256,869,932 | 35,573,378 | ||||||
LIABILITIES | ||||||||
Securities Sold, Not Yet Purchased(b) | 125,683,452 | — | ||||||
Payable for Securities Purchased | 2,839,196 | 468,792 | ||||||
Advisory Payable | 158,392 | 13,296 | ||||||
Interest Payable | 36,290 | 1,517 | ||||||
Dividend Payable on Securities Sold, Not Yet Purchased | 7,200 | — | ||||||
Trustee Fees Payable | 636 | 728 | ||||||
Options Written, at Value(c) | — | — | ||||||
Capital Shares Payable | — | — | ||||||
Cash collateral for securities on loan | — | 265,875 | ||||||
Accrued Expenses | 86,042 | 40,429 | ||||||
Total Liabilities | 128,811,208 | 790,637 | ||||||
NET ASSETS | $ | 128,058,724 | $ | 34,782,741 | ||||
COMPONENTS OF NET ASSETS | ||||||||
Capital Stock at Zero Par Value | $ | 297,055,876 | $ | 35,012,045 | ||||
Undistributed Net Investment Income (Loss) | (1,549,999 | ) | 3,072 | |||||
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, foreign currency transactions, futures and options written | (171,370,520 | ) | (139,868 | ) | ||||
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures and foreign currency translations | 3,923,367 | (92,508 | ) | |||||
NET ASSETS | $ | 128,058,724 | $ | 34,782,741 | ||||
SHARES ISSUED AND OUTSTANDING | ||||||||
Shares Outstanding (Unlimited Shares Authorized) | 11,775,000 | 350,000 | ||||||
Net Asset Value (NAV) Per Share | $ | 10.88 | $ | 99.38 | ||||
(a) Market value of securities on loan | $ | — | $ | 258,996 | ||||
(b) Proceeds Received from Securities Sold, Not Yet Purchased | $ | 129,792,969 | $ | — | ||||
(c) Premiums Received for Options Written | $ | — | $ | — |
See accompanying Notes to Financial Statements.
126
ADVISORSHARES TRUST
Statements of Assets and Liabilities
June 30, 2015
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||
AdvisorShares STAR Global Buy-Write ETF | AdvisorShares Sunrise Global Multi-Strategy ETF | AdvisorShares TrimTabs Float Shrink ETF | AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF | AdvisorShares YieldPro ETF | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Investments, at Cost: | $ | 24,590,212 | $ | 1,476,232 | $ | 243,905,752 | $ | 13,563,157 | $ | 34,853,709 | ||||||||||||||
Repurchase Agreements, at Cost (Note 3) | — | — | 759,509 | 2,440,719 | — | |||||||||||||||||||
Investments in Affiliates, at Cost (Note 9) | 249,948 | — | — | — | — | |||||||||||||||||||
Total Cost of Investments | 24,840,160 | 1,476,232 | 244,665,261 | 16,003,876 | 34,853,709 | |||||||||||||||||||
Investments, at Market Value (including securities on loan) (Note 2)(a) | 26,169,168 | 1,538,789 | 242,486,081 | 15,515,628 | 34,658,737 | |||||||||||||||||||
Repurchase Agreements, at Market Value (Note 3) | — | — | 759,509 | 2,440,719 | — | |||||||||||||||||||
Investments in Affiliates, at Market Value (Note 9) | 248,425 | — | — | — | — | |||||||||||||||||||
Total Market Value of Investments | 26,417,593 | 1,538,789 | 243,245,590 | 17,956,347 | 34,658,737 | |||||||||||||||||||
Cash | — | — | — | — | — | |||||||||||||||||||
Cash collateral held at brokers | 691,494 | 296,634 | — | — | — | |||||||||||||||||||
Receivable from Securities Sold | — | — | — | — | 2,278,872 | |||||||||||||||||||
Dividends and Interest Receivable | 99,864 | — | 212,776 | 43,765 | 14,463 | |||||||||||||||||||
Capital Shares Receivable | — | — | 2,852,613 | — | — | |||||||||||||||||||
Reclaim Receivable | — | — | — | 25,884 | — | |||||||||||||||||||
Prepaid CCO Fees | 250 | 150 | 1,173 | 213 | 217 | |||||||||||||||||||
Prepaid Expenses | 9,189 | — | 7,241 | 7,065 | 9,210 | |||||||||||||||||||
Total Assets | 27,218,390 | 1,835,573 | 246,319,393 | 18,033,274 | 36,961,499 | |||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Securities Sold, Not Yet Purchased(b) | — | — | — | — | — | |||||||||||||||||||
Payable for Securities Purchased | 529,954 | — | 2,849,311 | — | — | |||||||||||||||||||
Advisory Payable | 32,845 | 6,584 | 179,365 | 6,063 | 22,709 | |||||||||||||||||||
Interest Payable | — | — | — | — | — | |||||||||||||||||||
Dividend Payable on Securities Sold, Not Yet Purchased | — | — | — | — | — | |||||||||||||||||||
Trustee Fees Payable | 736 | 761 | 538 | 746 | 717 | |||||||||||||||||||
Options Written, at Value(c) | 13,449 | — | — | — | — | |||||||||||||||||||
Capital Shares Payable | — | — | — | — | 2,306,720 | |||||||||||||||||||
Cash collateral for securities on loan | — | — | 759,509 | 2,440,719 | — | |||||||||||||||||||
Accrued Expenses | 44,685 | 34,416 | 58,547 | 42,248 | 33,371 | |||||||||||||||||||
Total Liabilities | 621,669 | 41,761 | 3,847,270 | 2,489,776 | 2,363,517 | |||||||||||||||||||
NET ASSETS | $ | 26,596,721 | $ | 1,793,812 | $ | 242,472,123 | $ | 15,543,498 | $ | 34,597,982 | ||||||||||||||
COMPONENTS OF NET ASSETS | ||||||||||||||||||||||||
Capital Stock at Zero Par Value | $ | 25,265,157 | $ | 1,929,849 | $ | 254,759,510 | $ | 13,968,534 | $ | 39,156,730 | ||||||||||||||
Undistributed Net Investment Income (Loss) | (3,196 | ) | (45,447 | ) | 887,332 | 36,011 | 3,170 | |||||||||||||||||
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, foreign currency transactions, futures and options written | (298,655 | ) | (153,147 | ) | (11,755,048 | ) | (413,518 | ) | (4,366,946 | ) | ||||||||||||||
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures and foreign currency translations | 1,633,415 | 62,557 | (1,419,671 | ) | 1,952,471 | (194,972 | ) | |||||||||||||||||
NET ASSETS | $ | 26,596,721 | $ | 1,793,812 | $ | 242,472,123 | $ | 15,543,498 | $ | 34,597,982 | ||||||||||||||
SHARES ISSUED AND OUTSTANDING | ||||||||||||||||||||||||
Shares Outstanding (Unlimited Shares Authorized) | 1,000,000 | 75,000 | 4,250,000 | 400,000 | 1,500,000 | |||||||||||||||||||
Net Asset Value (NAV) Per Share | $ | 26.60 | $ | 23.92 | $ | 57.05 | $ | 38.86 | $ | 23.07 | ||||||||||||||
(a) Market value of securities on loan | $ | — | $ | — | $ | 3,007,503 | $ | 2,384,176 | $ | — | ||||||||||||||
(b) Proceeds Received from Securities Sold, Not Yet Purchased | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
(c) Premiums Received for Options Written | $ | 69,431 | $ | — | $ | — | $ | — | $ | — |
See accompanying Notes to Financial Statements.
127
![]() | ![]() | ![]() | ![]() | |||||||||
AdvisorShares Accuvest Global Long Short ETF | AdvisorShares Athena High Dividend ETF(1) | AdvisorShares EquityPro ETF | ||||||||||
INVESTMENT INCOME: | ||||||||||||
Dividend Income | $ | 253,781 | $ | 596,676 | $ | 385,425 | ||||||
Dividend Income from Affiliates | — | — | — | |||||||||
Interest Income | 123 | 42 | 74 | |||||||||
Securities lending income (Note 2) | — | 34,494 | 251,942 | |||||||||
Foreign withholding tax | — | (14,380 | ) | (322 | ) | |||||||
Total Investment Income | 253,904 | 616,832 | 637,119 | |||||||||
EXPENSES: | ||||||||||||
Advisory Fees | 242,574 | 88,080 | 203,974 | |||||||||
Accounting & Administration Fees | 76,838 | 10,308 | 20,444 | |||||||||
Professional Fees | 23,243 | 41,097 | 19,793 | |||||||||
Report to Shareholders | 13,430 | 10,837 | 11,974 | |||||||||
Pricing Fees | 8,232 | 4,809 | 4,898 | |||||||||
Exchange Listing Fees | 7,497 | 16,175 | 7,320 | |||||||||
Trustee Fees | 2,858 | 2,920 | 2,844 | |||||||||
Custody Fees | 2,524 | 4,428 | 1,528 | |||||||||
CCO Fees | 2,331 | 2,101 | 2,234 | |||||||||
Transfer Agent Fees | 1,348 | 826 | 1,912 | |||||||||
Insurance Fees | 1,077 | 399 | 118 | |||||||||
Registration Fees | 674 | 5,331 | 4,634 | |||||||||
Contribution to Global Echo Foundation | — | — | — | |||||||||
Miscellaneous Fees | 2,038 | 1,465 | 6,564 | |||||||||
Total Expenses | 384,664 | 188,776 | 288,237 | |||||||||
Advisory Fees Waived/Recoupment | (115,138 | ) | (79,776 | ) | 30,452 | |||||||
Expense Reimbursement | — | — | — | |||||||||
Net Expenses | 269,526 | 109,000 | 318,689 | |||||||||
Net Investment Income (Loss) | (15,622 | ) | 507,832 | 318,430 | ||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON: | ||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||
Investments | (1,603,446 | ) | (2,202,636 | ) | 1,351,756 | |||||||
Investments in Affiliates | — | — | — | |||||||||
In-Kind Redemptions | 364,248 | — | 272,155 | |||||||||
In-Kind Redemptions in Affiliates | — | — | — | |||||||||
Swaps | 703,697 | — | — | |||||||||
Futures | — | — | — | |||||||||
Distributions by other Investment Companies | — | — | — | |||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
Investments | (565,669 | ) | (1,007,787 | ) | (1,781,112 | ) | ||||||
Swaps | 103,629 | — | — | |||||||||
Futures | — | — | — | |||||||||
Net Realized and Unrealized Gain (Loss) | (997,541 | ) | (3,210,423 | ) | (157,201 | ) | ||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (1,013,163 | ) | $ | (2,702,591 | ) | $ | 161,229 |
(1) | Represents the period July 29, 2014 (commencement of operations) to June 30, 2015. |
See accompanying Notes to Financial Statements.
128
ADVISORSHARES TRUST
Statements of Operations
Year or Period Ended June 30, 2015
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||
AdvisorShares Gartman Gold/Euro ETF (Consolidated) | AdvisorShares Gartman Gold/Yen ETF (Consolidated) | AdvisorShares Global Echo ETF | AdvisorShares Madrona Domestic ETF | AdvisorShares Madrona Global Bond ETF | ||||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||
Dividend Income | $ | — | $ | — | $ | 57,312 | $ | 452,640 | $ | 903,195 | ||||||||||||||
Dividend Income from Affiliates | — | — | — | — | 57,711 | |||||||||||||||||||
Interest Income | 1,882 | 2,510 | 37,738 | 76 | 70 | |||||||||||||||||||
Securities lending income (Note 2) | — | — | 6,685 | 8,093 | 78,490 | |||||||||||||||||||
Foreign withholding tax | — | — | (3,002 | ) | (275 | ) | — | |||||||||||||||||
Total Investment Income | 1,882 | 2,510 | 98,733 | 460,534 | 1,039,466 | |||||||||||||||||||
EXPENSES: | ||||||||||||||||||||||||
Advisory Fees | 42,054 | 50,105 | 77,169 | 238,035 | 135,687 | |||||||||||||||||||
Accounting & Administration Fees | 30,736 | 31,361 | — | 100,122 | 76,362 | |||||||||||||||||||
Professional Fees | 55,041 | 55,397 | — | 22,865 | 22,892 | |||||||||||||||||||
Report to Shareholders | 4,285 | 5,881 | — | 8,473 | 8,833 | |||||||||||||||||||
Pricing Fees | 7,527 | 7,479 | — | 5,281 | 5,281 | |||||||||||||||||||
Exchange Listing Fees | 12,971 | 12,971 | — | 7,546 | 7,497 | |||||||||||||||||||
Trustee Fees | 3,802 | 3,807 | — | 2,858 | 2,856 | |||||||||||||||||||
Custody Fees | — | 683 | — | 14,438 | 2,338 | |||||||||||||||||||
CCO Fees | 1,851 | 1,946 | — | 1,987 | 1,848 | |||||||||||||||||||
Transfer Agent Fees | 574 | 683 | — | 2,232 | 2,036 | |||||||||||||||||||
Insurance Fees | — | — | — | 951 | 895 | |||||||||||||||||||
Registration Fees | 102 | 1,850 | — | 1,633 | 1,484 | |||||||||||||||||||
Contribution to Global Echo Foundation | — | — | 28,062 | — | — | |||||||||||||||||||
Miscellaneous Fees | 9,655 | 9,358 | — | 1,163 | 1,517 | |||||||||||||||||||
Total Expenses | 168,598 | 181,521 | 105,231 | 407,584 | 269,526 | |||||||||||||||||||
Advisory Fees Waived/Recoupment | (42,054 | ) | (50,105 | ) | — | (35,654 | ) | (11,721 | ) | |||||||||||||||
Expense Reimbursement | (76,843 | ) | (72,201 | ) | — | — | — | |||||||||||||||||
Net Expenses | 49,701 | 59,215 | 105,231 | 371,930 | 257,805 | |||||||||||||||||||
Net Investment Income (Loss) | (47,819 | ) | (56,705 | ) | (6,498 | ) | 88,604 | 781,661 | ||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON: | ||||||||||||||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||||||||||
Investments | 258 | — | 126,566 | (698,397 | ) | (165,278 | ) | |||||||||||||||||
Investments in Affiliates | — | — | (2,935 | ) | — | (163,677 | ) | |||||||||||||||||
In-Kind Redemptions | — | — | 429,774 | 4,610,406 | — | |||||||||||||||||||
In-Kind Redemptions in Affiliates | — | — | 213 | — | — | |||||||||||||||||||
Swaps | — | — | — | — | — | |||||||||||||||||||
Futures | (434,847 | ) | 338,995 | — | — | — | ||||||||||||||||||
Distributions by other Investment Companies | — | — | — | — | 40,871 | |||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||
Investments | — | — | (393,159 | ) | (2,315,861 | ) | (1,157,891 | ) | ||||||||||||||||
Swaps | — | — | — | — | — | |||||||||||||||||||
Futures | (45,609 | ) | (549,013 | ) | — | — | — | |||||||||||||||||
Net Realized and Unrealized Gain (Loss) | (480,198 | ) | (210,018 | ) | 160,459 | 1,596,148 | (1,445,975 | ) | ||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (528,017 | ) | $ | (266,723 | ) | $ | 153,961 | $ | 1,684,752 | $ | (664,314 | ) |
See accompanying Notes to Financial Statements.
129
ADVISORSHARES TRUST
Statements of Operations
Year or Period Ended June 30, 2015
![]() | ![]() | ![]() | ![]() | |||||||||
AdvisorShares Madrona International ETF | AdvisorShares Meidell Tactical Advantage ETF | AdvisorShares Morgan Creek Global Tactical ETF(1) | ||||||||||
INVESTMENT INCOME: | ||||||||||||
Dividend Income | $ | 441,804 | $ | 274,639 | $ | 229,143 | ||||||
Dividend Income from Affiliates | — | 94 | — | |||||||||
Interest Income | 75 | — | 18 | |||||||||
Securities lending income (Note 2) | 95,830 | 35,941 | 32,856 | |||||||||
Foreign withholding tax | (50,293 | ) | — | — | ||||||||
Total Investment Income | 487,416 | 310,674 | 262,017 | |||||||||
EXPENSES: | ||||||||||||
Advisory Fees | 146,608 | 193,668 | 159,072 | |||||||||
Accounting & Administration Fees | 91,559 | 74,824 | 77,685 | |||||||||
Professional Fees | 22,842 | 22,677 | 80,366 | |||||||||
Custody Fees | 19,173 | 2,522 | 4,960 | |||||||||
Report to Shareholders | 8,343 | 7,416 | 46,548 | |||||||||
Exchange Listing Fees | 7,497 | 7,541 | 9,729 | |||||||||
Pricing Fees | 5,281 | 5,008 | 5,281 | |||||||||
Trustee Fees | 2,846 | 2,840 | 2,871 | |||||||||
CCO Fees | 1,599 | 1,659 | 2,390 | |||||||||
Transfer Agent Fees | 1,375 | 1,211 | 1,326 | |||||||||
Insurance Fees | 679 | 541 | 1,052 | |||||||||
Registration Fees | 46 | 585 | — | |||||||||
Interest on Securities Sold, Not Yet Purchased | — | — | — | |||||||||
Miscellaneous Fees | 1,080 | 904 | 2,900 | |||||||||
Total Expenses | 308,928 | 321,396 | 394,180 | |||||||||
Advisory Fees Waived/Recoupment | (79,853 | ) | (103,519 | ) | (159,072 | ) | ||||||
Expense Reimbursement | — | (14,174 | ) | |||||||||
Net Expenses | 229,075 | 217,877 | 220,934 | |||||||||
Net Investment Income (Loss) | 258,341 | 92,797 | 41,083 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON: | ||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||
Investments | (1,472,073 | ) | 192,616 | 90,596 | ||||||||
Investments in Affiliates | — | (936 | ) | — | ||||||||
In-Kind Redemptions | 1,948,380 | 443,292 | 1,456,000 | |||||||||
In-Kind Redemptions in Affiliates | — | — | — | |||||||||
Swaps | — | — | — | |||||||||
Short Sales | — | — | — | |||||||||
Foreign Currency Transactions | — | — | — | |||||||||
Options Written | — | — | — | |||||||||
Distributions by other Investment Companies | — | — | 50,150 | |||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
Investments | (1,747,956 | ) | (189,353 | ) | (2,482,888 | ) | ||||||
Short Sales | — | — | — | |||||||||
Swaps | — | — | — | |||||||||
Foreign currency translations | — | — | — | |||||||||
Net Realized and Unrealized Gain (Loss) | (1,271,649 | ) | 445,619 | (886,142 | ) | |||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (1,013,308 | ) | $ | 538,416 | $ | (845,059 | ) |
(1) | Formerly known as, AdvisorShares Cambria Global Tactical ETF. |
(2) | Represents the period February 18, 2015 (commencement of operations) to June 30, 2015. |
See accompanying Notes to Financial Statements.
130
ADVISORSHARES TRUST
Statements of Operations
Year or Period Ended June 30, 2015
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||
AdvisorShares Newfleet Multi-Sector Income ETF | AdvisorShares Pacific Asset Enhanced Floating Rate ETF(2) | AdvisorShares Peritus High Yield ETF | AdvisorShares Pring Turner Business Cycle ETF | AdvisorShares QAM Equity Hedge ETF | ||||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||
Dividend Income | $ | — | $ | — | $ | 2,789,994 | $ | 107,118 | $ | 88,233 | ||||||||||||||
Dividend Income from Affiliates | — | — | — | 7,858 | 1,556 | |||||||||||||||||||
Interest Income | 6,257,437 | 434,885 | 50,192,656 | 56 | 260 | |||||||||||||||||||
Securities lending income (Note 2) | 14,704 | — | 817,790 | 11,135 | — | |||||||||||||||||||
Foreign withholding tax | (1,647 | ) | — | (422,645 | ) | (1,987 | ) | — | ||||||||||||||||
Total Investment Income | 6,270,494 | 434,885 | 53,377,795 | 124,180 | 90,049 | |||||||||||||||||||
EXPENSES: | ||||||||||||||||||||||||
Advisory Fees | 1,216,397 | 90,675 | 6,609,619 | 49,131 | 75,366 | |||||||||||||||||||
Accounting & Administration Fees | 166,847 | 3,818 | 284,906 | 62,656 | 75,961 | |||||||||||||||||||
Professional Fees | 25,076 | 24,496 | 41,721 | 22,608 | 22,761 | |||||||||||||||||||
Custody Fees | 25,851 | 1,633 | 55,148 | 886 | 497 | |||||||||||||||||||
Report to Shareholders | 41,286 | 3,103 | 159,161 | 3,639 | 5,184 | |||||||||||||||||||
Exchange Listing Fees | 7,496 | 5,072 | 7,497 | 7,496 | 7,497 | |||||||||||||||||||
Pricing Fees | 19,014 | 2,132 | 13,957 | 5,119 | 8,232 | |||||||||||||||||||
Trustee Fees | 3,090 | 1,481 | 4,636 | 2,821 | 2,826 | |||||||||||||||||||
CCO Fees | 6,745 | 1,129 | 24,430 | 1,308 | 1,448 | |||||||||||||||||||
Transfer Agent Fees | 14,037 | 716 | 55,492 | 368 | 565 | |||||||||||||||||||
Insurance Fees | 4,887 | — | 24,820 | 273 | 290 | |||||||||||||||||||
Registration Fees | 7,758 | — | 62,307 | 103 | 294 | |||||||||||||||||||
Interest on Securities Sold, Not Yet Purchased | — | — | — | — | 11,570 | |||||||||||||||||||
Miscellaneous Fees | 4,884 | 784 | 40,412 | 787 | 642 | |||||||||||||||||||
Total Expenses | 1,543,368 | 135,039 | 7,384,106 | 157,195 | 213,133 | |||||||||||||||||||
Advisory Fees Waived/Recoupment | (139,832 | ) | (30,047 | ) | — | (49,131 | ) | (75,366 | ) | |||||||||||||||
Expense Reimbursement | — | — | — | (34,860 | ) | (13,148 | ) | |||||||||||||||||
Net Expenses | 1,403,536 | 104,992 | 7,384,106 | 73,204 | 124,619 | |||||||||||||||||||
Net Investment Income (Loss) | 4,866,958 | 329,893 | 45,993,689 | 50,976 | (34,570 | ) | ||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON: | ||||||||||||||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||||||||||
Investments | (626,103 | ) | — | (119,735,670 | ) | (284,838 | ) | 45,329 | ||||||||||||||||
Investments in Affiliates | — | — | — | (36,870 | ) | — | ||||||||||||||||||
In-Kind Redemptions | — | — | 1,868,709 | 35,639 | 206,231 | |||||||||||||||||||
In-Kind Redemptions in Affiliates | — | — | — | — | (333 | ) | ||||||||||||||||||
Swaps | — | (10,073 | ) | — | — | — | ||||||||||||||||||
Short Sales | — | — | — | — | 44,939 | |||||||||||||||||||
Foreign Currency Transactions | (2,019 | ) | — | — | — | — | ||||||||||||||||||
Options Written | — | — | — | — | 358 | |||||||||||||||||||
Distributions by other Investment Companies | — | — | — | 236 | 3,848 | |||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||
Investments | (2,187,563 | ) | (177,165 | ) | (52,730,083 | ) | (478,129 | ) | (244,333 | ) | ||||||||||||||
Short Sales | — | — | — | — | 52,406 | |||||||||||||||||||
Swaps | — | (2,712 | ) | — | — | — | ||||||||||||||||||
Foreign currency translations | (2 | ) | — | — | — | — | ||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | (2,815,687 | ) | (189,950 | ) | (170,597,044 | ) | (763,962 | ) | 108,445 | |||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,051,271 | $ | 139,943 | $ | (124,603,355 | ) | $ | (712,986 | ) | $ | 73,875 |
See accompanying Notes to Financial Statements.
131
ADVISORSHARES TRUST
Statements of Operations
Year or Period Ended June 30, 2015
![]() | ![]() | ![]() | ||||||
AdvisorShares Ranger Equity Bear ETF | AdvisorShares Sage Core Reserves ETF | |||||||
INVESTMENT INCOME: | ||||||||
Dividend Income | $ | — | $ | — | ||||
Dividend Income from Affiliates | 118,989 | — | ||||||
Interest Income | 4,587 | 171,157 | ||||||
Securities lending income (Note 2) | — | 173 | ||||||
Foreign withholding tax | — | (275 | ) | |||||
Total Investment Income | 123,576 | 171,055 | ||||||
EXPENSES: | ||||||||
Advisory Fees | 2,239,492 | 109,224 | ||||||
Accounting & Administration Fees | 84,561 | 41,924 | ||||||
Report to Shareholders | 49,183 | 25,259 | ||||||
Professional Fees | 26,379 | 48,593 | ||||||
Custody Fees | 11,278 | 4,671 | ||||||
Transfer Agent Fees | 11,198 | 2,731 | ||||||
Pricing Fees | 8,232 | 10,699 | ||||||
Exchange Listing Fees | 7,497 | 11,857 | ||||||
Insurance Fees | 6,038 | 210 | ||||||
Registration Fees | 3,359 | 2,512 | ||||||
Trustee Fees | 3,105 | 3,059 | ||||||
CCO Fees | 2,577 | 2,291 | ||||||
Interest on Securities Sold, Not Yet Purchased | 1,112,213 | — | ||||||
Dividend Expense | 608,898 | — | ||||||
Licensing Fees | — | — | ||||||
Miscellaneous Fees | 9,727 | 2,629 | ||||||
Total Expenses | 4,183,737 | 265,659 | ||||||
Advisory Fees Waived/Recoupment | — | (109,224 | ) | |||||
Expense Reimbursement | — | (29,007 | ) | |||||
Net Expenses | 4,183,737 | 127,428 | ||||||
Net Investment Income (Loss) | (4,060,161 | ) | 43,627 | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON: | ||||||||
Net Realized Gain (Loss) on: | ||||||||
Investments | 22 | 15,590 | ||||||
Investments in Affiliates | — | — | ||||||
In-Kind Redemptions | — | — | ||||||
In-Kind Redemptions in Affiliates | — | — | ||||||
Short Sales | (19,107,533 | ) | — | |||||
Foreign Currency Transactions | — | — | ||||||
Futures | — | (50,432 | ) | |||||
Options Written | — | — | ||||||
Distributions by other Investment Companies | — | — | ||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||
Investments | (132,000 | ) | (13,473 | ) | ||||
Short Sales | 12,466,124 | — | ||||||
Options Written | — | — | ||||||
Futures | — | (429 | ) | |||||
Net Realized and Unrealized Gain (Loss) | (6,773,387 | ) | (48,744 | ) | ||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (10,833,548 | ) | $ | (5,117 | ) |
(1) | Represents the period July 8, 2014 (commencement of operations) to June 30, 2015. |
See accompanying Notes to Financial Statements.
132
ADVISORSHARES TRUST
Statements of Operations
Year or Period Ended June 30, 2015
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||
AdvisorShares STAR Global Buy-Write ETF | AdvisorShares Sunrise Global Multi-Strategy ETF(1) | AdvisorShares TrimTabs Float Shrink ETF | AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF | AdvisorShares YieldPro ETF | ||||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||
Dividend Income | $ | 499,938 | $ | 35,941 | $ | 3,153,895 | $ | 295,994 | $ | 2,443,389 | ||||||||||||||
Dividend Income from Affiliates | 1,003 | — | — | — | 174,117 | |||||||||||||||||||
Interest Income | 212 | — | 57 | 207 | 512 | |||||||||||||||||||
Securities lending income (Note 2) | — | — | 17,733 | 52,797 | — | |||||||||||||||||||
Foreign withholding tax | — | — | (2,674 | ) | (32,619 | ) | — | |||||||||||||||||
Total Investment Income | 501,153 | 35,941 | 3,169,011 | 316,379 | 2,618,018 | |||||||||||||||||||
EXPENSES: | ||||||||||||||||||||||||
Advisory Fees | 359,275 | 31,204 | 1,787,781 | 111,297 | 461,572 | |||||||||||||||||||
Accounting & Administration Fees | 77,677 | 9,016 | 74,226 | 72,133 | 26,636 | |||||||||||||||||||
Report to Shareholders | 10,217 | 10,323 | 46,688 | 4,972 | 28,304 | |||||||||||||||||||
Professional Fees | 21,215 | 56,053 | 24,681 | 22,596 | 43,265 | |||||||||||||||||||
Custody Fees | 5,365 | 1,907 | 15,561 | 2,050 | 3,257 | |||||||||||||||||||
Transfer Agent Fees | 1,996 | 156 | 13,545 | 1,113 | 4,328 | |||||||||||||||||||
Pricing Fees | 6,774 | 5,000 | 5,350 | 5,281 | 7,361 | |||||||||||||||||||
Exchange Listing Fees | 7,497 | 7,802 | 7,496 | 7,497 | 8,143 | |||||||||||||||||||
Insurance Fees | 893 | 343 | 4,268 | 453 | 1,441 | |||||||||||||||||||
Registration Fees | 324 | 740 | 4,955 | 1,620 | 5,785 | |||||||||||||||||||
Trustee Fees | 2,860 | 2,918 | 3,060 | 2,834 | 3,512 | |||||||||||||||||||
CCO Fees | 1,846 | 1,893 | 6,839 | 2,408 | 4,193 | |||||||||||||||||||
Interest on Securities Sold, Not Yet Purchased | — | — | — | — | — | |||||||||||||||||||
Dividend Expense | — | — | — | — | — | |||||||||||||||||||
Licensing Fees | — | — | — | 6,399 | — | |||||||||||||||||||
Miscellaneous Fees | 1,376 | 1,587 | 4,550 | 650 | 5,822 | |||||||||||||||||||
Total Expenses | 497,315 | 128,942 | 1,999,000 | 241,303 | 603,619 | |||||||||||||||||||
Advisory Fees Waived/Recoupment | (4,976 | ) | (31,204 | ) | (211,220 | ) | (55,807 | ) | — | |||||||||||||||
Expense Reimbursement | — | (61,333 | ) | — | — | — | ||||||||||||||||||
Net Expenses | 492,339 | 36,405 | 1,787,780 | 185,496 | 603,619 | |||||||||||||||||||
Net Investment Income (Loss) | 8,814 | (464 | ) | 1,381,231 | 130,883 | 2,014,399 | ||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON: | ||||||||||||||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||||||||||
Investments | (21,980 | ) | (54,452 | ) | (7,774,553 | ) | 38,779 | (3,150,261 | ) | |||||||||||||||
Investments in Affiliates | — | — | — | — | (482,303 | ) | ||||||||||||||||||
In-Kind Redemptions | 383,698 | 54,396 | 30,524,178 | 314,566 | 122,819 | |||||||||||||||||||
In-Kind Redemptions in Affiliates | (111 | ) | — | — | — | (7,807 | ) | |||||||||||||||||
Short Sales | — | — | — | — | — | |||||||||||||||||||
Foreign Currency Transactions | — | 363 | — | — | — | |||||||||||||||||||
Futures | — | (100,159 | ) | — | — | — | ||||||||||||||||||
Options Written | 21,458 | — | — | — | — | |||||||||||||||||||
Distributions by other Investment Companies | 269 | — | — | — | 6,121 | |||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||
Investments | (11,288 | ) | 62,557 | (7,341,753 | ) | (262,768 | ) | (1,445,645 | ) | |||||||||||||||
Short Sales | — | — | — | — | — | |||||||||||||||||||
Options Written | 46,223 | — | — | — | — | |||||||||||||||||||
Futures | — | — | — | — | — | |||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | 418,269 | (37,295 | ) | 15,407,872 | 90,577 | (4,957,076 | ) | |||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 427,083 | $ | (37,759 | ) | $ | 16,789,103 | $ | 221,460 | $ | (2,942,677 | ) |
See accompanying Notes to Financial Statements.
133
![]() | ![]() | ![]() | ![]() | |||||||||
AdvisorShares Accuvest Global Long Short ETF | AdvisorShares Athena High Dividend ETF | |||||||||||
Year ended June 30, 2015 | Year ended June 30, 2014 | For the period July 29, 2014* to June 30, 2015 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||
OPERATIONS | ||||||||||||
Net Investment Income (Loss) | $ | (15,622 | ) | $ | (151,464 | ) | $ | 507,832 | ||||
Net Realized Gain (Loss) | (535,501 | ) | (1,275,082 | ) | (2,202,636 | ) | ||||||
Net Change in Unrealized Appreciation (Depreciation) | (462,040 | ) | (579,792 | ) | (1,007,787 | ) | ||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | (1,013,163 | ) | (2,006,338 | ) | (2,702,591 | ) | ||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||
Net Investment Income | — | — | (529,121 | ) | ||||||||
Net Realized Gains | — | — | — | |||||||||
Total Distributions | — | — | (529,121 | ) | ||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||
Proceeds from Shares Issued | 12,476,577 | 69,802,024 | 18,496,464 | |||||||||
Value of Shares Redeemed | (23,467,035 | ) | (84,472,216 | ) | — | |||||||
Net Increase (Decrease) From Capital Stock Transactions | (10,990,458 | ) | (14,670,192 | ) | 18,496,464 | |||||||
Net Increase (Decrease) in Net Assets | (12,003,621 | ) | (16,676,530 | ) | 15,264,752 | |||||||
Net Assets: | ||||||||||||
Beginning of Period | 25,896,016 | 42,572,546 | — | |||||||||
End of Period | $ | 13,892,395 | $ | 25,896,016 | $ | 15,264,752 | ||||||
Undistributed Net Investment Income (Loss) | $ | — | $ | — | $ | 394 | ||||||
Changes in Shares Outstanding | ||||||||||||
Shares Outstanding, Beginning of Period | 1,250,000 | 1,950,000 | — | |||||||||
Shares Sold | 600,000 | 3,250,000 | 800,000 | |||||||||
Shares Repurchased | (1,150,000 | ) | (3,950,000 | ) | — | |||||||
End of Period | 700,000 | 1,250,000 | 800,000 |
* | Commencement of operations. |
See accompanying Notes to Financial Statements.
134
ADVISORSHARES TRUST
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||||||
AdvisorShares EquityPro ETF | AdvisorShares Gartman Gold/Euro ETF (Consolidated) | AdvisorShares Gartman Gold/Yen ETF (Consolidated) | ||||||||||||||||||||||||||
Year ended June 30, 2015 | Year ended June 30, 2014 | Year ended June 30, 2015 | For the period February 11, 2014* to June 30, 2014 | Year ended June 30, 2015 | For the period February 11, 2014* to June 30, 2014 | |||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||
Net Investment Income (Loss) | $ | 318,430 | $ | 416,909 | $ | (47,819 | ) | $ | (3,093 | ) | $ | (56,705 | ) | $ | (7,557 | ) | ||||||||||||
Net Realized Gain (Loss) | 1,623,911 | 264,841 | (434,589 | ) | (32,913 | ) | 338,995 | (161,492 | ) | |||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | (1,781,112 | ) | 1,054,167 | (45,609 | ) | 58,232 | (549,013 | ) | 140,838 | |||||||||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 161,229 | 1,735,917 | (528,017 | ) | 22,226 | (266,723 | ) | (28,211 | ) | |||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||||||||||
Net Investment Income | (269,924 | ) | (154,669 | ) | (27,862 | ) | — | (24,357 | ) | — | ||||||||||||||||||
Net Realized Gains | (463,353 | ) | — | (126,850 | ) | — | (296,740 | ) | — | |||||||||||||||||||
Total Distributions | (733,277 | ) | (154,669 | ) | (154,712 | ) | — | (321,097 | ) | — | ||||||||||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||||||||||
Proceeds from Shares Issued | 11,378,050 | 20,096,255 | 17,829,090 | 1,280,000 | 19,728,176 | 3,909,508 | ||||||||||||||||||||||
Value of Shares Redeemed | (11,696,707 | ) | (2,964,386 | ) | (1,690,732 | ) | — | — | — | |||||||||||||||||||
Net Increase (Decrease) From Capital Stock Transactions | (318,657 | ) | 17,131,869 | 16,138,358 | 1,280,000 | 19,728,176 | 3,909,508 | |||||||||||||||||||||
Net Increase (Decrease) in Net Assets | (890,705 | ) | 18,713,117 | 15,455,629 | 1,302,226 | 19,140,356 | 3,881,297 | |||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||
Beginning of Period | 20,069,640 | 1,356,523 | 1,302,226 | — | 3,881,297 | — | ||||||||||||||||||||||
End of Period | $ | 19,178,935 | $ | 20,069,640 | $ | 16,757,855 | $ | 1,302,226 | $ | 23,021,653 | $ | 3,881,297 | ||||||||||||||||
Undistributed Net Investment Income (Loss) | $ | 254,396 | $ | 269,918 | $ | — | $ | (3,093 | ) | $ | — | $ | (7,557 | ) | ||||||||||||||
Changes in Shares Outstanding | ||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 625,000 | 50,000 | 100,000 | — | 300,000 | — | ||||||||||||||||||||||
Shares Sold | 375,000 | 675,000 | 1,300,000 | 100,000 | 1,450,000 | 300,000 | ||||||||||||||||||||||
Shares Repurchased | (375,000 | ) | (100,000 | ) | (125,000 | ) | — | — | — | |||||||||||||||||||
End of Period | 625,000 | 625,000 | 1,275,000 | 100,000 | 1,750,000 | 300,000 |
See accompanying Notes to Financial Statements.
135
ADVISORSHARES TRUST
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
AdvisorShares Global Echo ETF | AdvisorShares Madrona Domestic ETF | |||||||||||||||
Year ended June 30, 2015 | Year ended June 30, 2014 | Year ended June 30, 2015 | Year ended June 30, 2014 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net Investment Income | $ | (6,498 | ) | $ | 26,912 | $ | 88,604 | $ | 66,719 | |||||||
Net Realized Gain (Loss) | 553,618 | 33,814 | 3,912,009 | 2,601,716 | ||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | (393,159 | ) | 673,768 | (2,315,861 | ) | 2,619,735 | ||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 153,961 | 734,494 | 1,684,752 | 5,288,170 | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||
Net Investment Income | (46,077 | ) | (2,380 | ) | (96,271 | ) | (59,938 | ) | ||||||||
Total Distributions | (46,077 | ) | (2,380 | ) | (96,271 | ) | (59,938 | ) | ||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||
Proceeds from Shares Issued | 1,593,777 | 3,045,916 | 23,992,082 | 10,327,769 | ||||||||||||
Value of Shares Redeemed | (3,058,904 | ) | — | (18,761,355 | ) | (9,393,829 | ) | |||||||||
Net Increase (Decrease) From Capital Stock Transactions | (1,465,127 | ) | 3,045,916 | 5,230,727 | 933,940 | |||||||||||
Net Increase (Decrease) in Net Assets | (1,357,243 | ) | 3,778,030 | 6,819,208 | 6,162,172 | |||||||||||
Net Assets: | ||||||||||||||||
Beginning of Period | 9,216,115 | 5,438,085 | 24,755,283 | 18,593,111 | ||||||||||||
End of Period | $ | 7,858,872 | $ | 9,216,115 | $ | 31,574,491 | $ | 24,755,283 | ||||||||
Undistributed Net Investment Income (Loss) | $ | — | $ | 30,808 | $ | 25,582 | $ | 33,249 | ||||||||
Changes in Shares Outstanding | ||||||||||||||||
Shares Outstanding, Beginning of Period | 150,000 | 100,000 | 600,000 | 575,000 | ||||||||||||
Shares Sold | 25,000 | 50,000 | 575,000 | 275,000 | ||||||||||||
Shares Repurchased | (50,000 | ) | — | (450,000 | ) | (250,000 | ) | |||||||||
End of Period | 125,000 | 150,000 | 725,000 | 600,000 |
See accompanying Notes to Financial Statements.
136
ADVISORSHARES TRUST
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||||||
AdvisorShares Madrona Global Bond ETF | AdvisorShares Madrona International ETF | AdvisorShares Meidell Tactical Advantage ETF | ||||||||||||||||||||||||||
Year ended June 30, 2015 | Year ended June 30, 2014 | Year ended June 30, 2015 | Year ended June 30, 2014 | Year ended June 30, 2015 | Year ended June 30, 2014 | |||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||
Net Investment Income | $ | 781,661 | $ | 763,418 | $ | 258,341 | $ | 265,073 | $ | 92,797 | $ | 67,957 | ||||||||||||||||
Net Realized Gain (Loss) | (288,084 | ) | (166,336 | ) | 476,307 | 2,099,473 | 634,972 | 223,038 | ||||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | (1,157,891 | ) | 1,351,960 | (1,747,956 | ) | 1,576,909 | (189,353 | ) | 491,104 | |||||||||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | (664,314 | ) | 1,949,042 | (1,013,308 | ) | 3,941,455 | 538,416 | 782,099 | ||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||||||||||
Net Investment Income | (823,886 | ) | (761,153 | ) | (304,843 | ) | (318,396 | ) | (93,938 | ) | — | |||||||||||||||||
Total Distributions | (823,886 | ) | (761,153 | ) | (304,843 | ) | (318,396 | ) | (93,938 | ) | — | |||||||||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||||||||||
Proceeds from Shares Issued | 5,201,228 | 1,282,317 | 14,565,285 | 6,765,707 | 12,076,557 | 22,189,205 | ||||||||||||||||||||||
Value of Shares Redeemed | — | (630,454 | ) | (13,161,115 | ) | (6,088,375 | ) | (11,298,866 | ) | (16,430,574 | ) | |||||||||||||||||
Net Increase (Decrease) From Capital Stock Transactions | 5,201,228 | 651,863 | 1,404,170 | 677,332 | 777,691 | 5,758,631 | ||||||||||||||||||||||
Net Increase (Decrease) in Net Assets | 3,713,028 | 1,839,752 | 86,019 | 4,300,391 | 1,222,169 | 6,540,730 | ||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||
Beginning of Period | 24,382,691 | 22,542,939 | 19,278,648 | 14,978,257 | 15,749,582 | 9,208,852 | ||||||||||||||||||||||
End of Period | $ | 28,095,719 | $ | 24,382,691 | $ | 19,364,667 | $ | 19,278,648 | $ | 16,971,751 | $ | 15,749,582 | ||||||||||||||||
Undistributed Net Investment Income (Loss) | $ | 44 | $ | 13,352 | $ | 162,987 | $ | 208,792 | $ | 64,848 | $ | 67,182 | ||||||||||||||||
Changes in Shares Outstanding | ||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 925,000 | 900,000 | 650,000 | 625,000 | 525,000 | 325,000 | ||||||||||||||||||||||
Shares Sold | 200,000 | 50,000 | 500,000 | 250,000 | 400,000 | 750,000 | ||||||||||||||||||||||
Shares Repurchased | — | (25,000 | ) | (450,000 | ) | (225,000 | ) | (375,000 | ) | (550,000 | ) | |||||||||||||||||
End of Period | 1,125,000 | 925,000 | 700,000 | 650,000 | 550,000 | 525,000 |
See accompanying Notes to Financial Statements.
137
ADVISORSHARES TRUST
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
AdvisorShares Morgan Creek Global Tactical ETF(1) | AdvisorShares Newfleet Multi-Sector Income ETF | |||||||||||||||
Year ended June 30, 2015 | Year ended June 30, 2014 | Year ended June 30, 2015 | Year ended June 30, 2014 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net Investment Income | $ | 41,083 | $ | 514,710 | $ | 4,866,958 | $ | 2,658,998 | ||||||||
Net Realized Gain (Loss) | 1,596,746 | 2,606,984 | (628,122 | ) | (52,072 | ) | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) | (2,482,888 | ) | 927,505 | (2,187,565 | ) | 2,057,227 | ||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | (845,059 | ) | 4,049,199 | 2,051,271 | 4,664,153 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||
Net Investment Income | (354,156 | ) | — | (5,247,098 | ) | (2,905,125 | ) | |||||||||
Net Realized Gains | — | — | — | — | ||||||||||||
Total Distributions | (354,156 | ) | — | (5,247,098 | ) | (2,905,125 | ) | |||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||
Proceeds from Shares Issued | — | 1,306,971 | 69,253,284 | 72,137,339 | ||||||||||||
Value of Shares Redeemed | (23,158,545 | ) | (18,631,777 | ) | (4,927,422 | ) | (2,447,417 | ) | ||||||||
Net Increase (Decrease) From Capital Stock Transactions | (23,158,545 | ) | (17,324,806 | ) | 64,325,862 | 69,689,922 | ||||||||||
Net Increase (Decrease) in Net Assets | (24,357,760 | ) | (13,275,607 | ) | 61,130,035 | 71,448,950 | ||||||||||
Net Assets: | ||||||||||||||||
Beginning of Period | 36,666,722 | 49,942,329 | 154,810,771 | 83,361,821 | ||||||||||||
End of Period | $ | 12,308,962 | $ | 36,666,722 | $ | 215,940,806 | $ | 154,810,771 | ||||||||
Undistributed Net Investment Income (Loss) | $ | 82,968 | $ | 354,155 | $ | 46,112 | $ | 77,533 | ||||||||
Changes in Shares Outstanding | ||||||||||||||||
Shares Outstanding, Beginning of Period | 1,400,000 | 2,100,000 | 3,100,000 | 1,700,000 | ||||||||||||
Shares Sold | — | 50,000 | 1,400,000 | 1,450,000 | ||||||||||||
Shares Repurchased | (900,000 | ) | (750,000 | ) | (100,000 | ) | (50,000 | ) | ||||||||
End of Period | 500,000 | 1,400,000 | 4,400,000 | 3,100,000 |
(1) | Formerly known as, AdvisorShares Cambria Global Tactical ETF. |
* | Commencement of operations. |
See accompanying Notes to Financial Statements.
138
ADVISORSHARES TRUST
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||
AdvisorShares Pacific Asset Enhanced Floating Rate ETF | AdvisorShares Peritus High Yield ETF | AdvisorShares Pring Turner Business Cycle ETF | ||||||||||||||||||||||
For the period February 18, 2015* to June 30, 2015 | Year ended June 30, 2015 | Year ended June 30, 2014 | Year ended June 30, 2015 | Year ended June 30, 2014 | ||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net Investment Income | $ | 329,893 | $ | 45,993,689 | $ | 46,696,979 | $ | 50,976 | $ | 48,924 | ||||||||||||||
Net Realized Gain (Loss) | (10,073 | ) | (117,866,961 | ) | 7,747 | (285,833 | ) | 128,393 | ||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | (179,877 | ) | (52,730,083 | ) | 28,680,594 | (478,129 | ) | 580,835 | ||||||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 139,943 | (124,603,355 | ) | 75,385,320 | (712,986 | ) | 758,152 | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||||||
Net Investment Income | (316,679 | ) | (48,496,620 | ) | (45,294,692 | ) | (53,639 | ) | (59,326 | ) | ||||||||||||||
Net Realized Gains | — | — | (385,440 | ) | — | — | ||||||||||||||||||
Total Distributions | (316,679 | ) | (48,496,620 | ) | (45,680,132 | ) | (53,639 | ) | (59,326 | ) | ||||||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||||||
Proceeds from Shares Issued | 27,488,348 | 192,942,545 | 786,562,567 | 725,852 | 1,309,926 | |||||||||||||||||||
Value of Shares Redeemed | — | (719,848,257 | ) | — | (640,545 | ) | (2,663,641 | ) | ||||||||||||||||
Net Increase (Decrease) From Capital Stock Transactions | 27,488,348 | (526,905,712 | ) | 786,562,567 | 85,307 | (1,353,715 | ) | |||||||||||||||||
Net Increase (Decrease) in Net Assets | 27,311,612 | (700,005,687 | ) | 816,267,755 | (681,318 | ) | (654,889 | ) | ||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of Period | — | 1,075,996,590 | 259,728,835 | 5,074,236 | 5,729,125 | |||||||||||||||||||
End of Period | $ | 27,311,612 | $ | 375,990,903 | $ | 1,075,996,590 | $ | 4,392,918 | $ | 5,074,236 | ||||||||||||||
Undistributed Net Investment Income (Loss) | $ | 18,971 | $ | 1,073,647 | $ | 1,623,319 | $ | 22,133 | $ | 18,295 | ||||||||||||||
Changes in Shares Outstanding | ||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | — | 20,200,000 | 5,150,000 | 175,000 | 225,000 | |||||||||||||||||||
Shares Sold | 550,000 | 4,000,000 | 15,050,000 | 25,000 | 50,000 | |||||||||||||||||||
Shares Repurchased | — | (14,950,000 | ) | — | (25,000 | ) | (100,000 | ) | ||||||||||||||||
End of Period | 550,000 | 9,250,000 | 20,200,000 | 175,000 | 175,000 |
* | Commencement of operations. |
See accompanying Notes to Financial Statements.
139
ADVISORSHARES TRUST
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
AdvisorShares QAM Equity Hedge ETF | AdvisorShares Ranger Equity Bear ETF | |||||||||||||||
Year ended June 30, 2015 | Year ended June 30, 2014 | Year ended June 30, 2015 | Year ended June 30, 2014 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net Investment Income (Loss) | $ | (34,570 | ) | $ | (48,172 | ) | $ | (4,060,161 | ) | $ | (4,722,034 | ) | ||||
Net Realized Gain (Loss) | 300,372 | 338,357 | (19,107,511 | ) | (48,679,864 | ) | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) | (191,927 | ) | 292,416 | 12,334,124 | (3,692,274 | ) | ||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 73,875 | 582,601 | (10,833,548 | ) | (57,094,172 | ) | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||
Net Investment Income | — | — | — | — | ||||||||||||
Net Realized Gains | (64,929 | ) | (119,153 | ) | — | — | ||||||||||
Total Distributions | (64,929 | ) | (119,153 | ) | — | — | ||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||
Proceeds from Shares Issued | 1,427,899 | 5,525,090 | 49,008,377 | 66,544,424 | ||||||||||||
Value of Shares Redeemed | (2,808,730 | ) | (1,377,532 | ) | (72,068,067 | ) | (65,855,506 | ) | ||||||||
Net Increase (Decrease) From Capital Stock Transactions | (1,380,831 | ) | 4,147,558 | (23,059,690 | ) | 688,918 | ||||||||||
Net Increase (Decrease) in Net Assets | (1,371,885 | ) | 4,611,006 | (33,893,238 | ) | (56,405,254 | ) | |||||||||
Net Assets: | ||||||||||||||||
Beginning of Period | 8,542,527 | 3,931,521 | 161,951,962 | 218,357,216 | ||||||||||||
End of Period | $ | 7,170,642 | $ | 8,542,527 | $ | 128,058,724 | $ | 161,951,962 | ||||||||
Undistributed Net Investment Income (Loss) | $ | (29,206 | ) | $ | — | $ | (1,549,999 | ) | $ | (2,033,900 | ) | |||||
Changes in Shares Outstanding | ||||||||||||||||
Shares Outstanding, Beginning of Period | 300,000 | 150,000 | 13,750,000 | 13,500,000 | ||||||||||||
Shares Sold | 50,000 | 200,000 | 4,225,000 | 4,950,000 | ||||||||||||
Shares Repurchased | (100,000 | ) | (50,000 | ) | (6,200,000 | ) | (4,700,000 | ) | ||||||||
End of Period | 250,000 | 300,000 | 11,775,000 | 13,750,000 |
* | Commencement of operations. |
See accompanying Notes to Financial Statements.
140
ADVISORSHARES TRUST
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||
AdvisorShares Sage Core Reserves ETF | AdvisorShares STAR Global Buy-Write ETF | AdvisorShares Sunrise Global Multi-Strategy ETF | ||||||||||||||||||||||
Year ended June 30, 2015 | For the period January 14, 2014* to June 30, 2014 | Year ended June 30, 2015 | Year ended June 30, 2014 | For the period July 8, 2014* to June 30, 2015 | ||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net Investment Income (Loss) | $ | 43,627 | $ | 119,779 | $ | 8,814 | $ | (102,119 | ) | $ | (464 | ) | ||||||||||||
Net Realized Gain (Loss) | (34,842 | ) | 2,015 | 383,334 | 339,698 | (99,852 | ) | |||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | (13,902 | ) | (78,606 | ) | 34,935 | 2,240,003 | 62,557 | |||||||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | (5,117 | ) | 43,188 | 427,083 | 2,477,582 | (37,759 | ) | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||||||
Net Investment Income | (147,384 | ) | (119,991 | ) | — | — | (45,346 | ) | ||||||||||||||||
Net Realized Gains | — | — | — | — | — | |||||||||||||||||||
Total Distributions | (147,384 | ) | (119,991 | ) | — | — | (45,346 | ) | ||||||||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||||||
Proceeds from Shares Issued | — | 37,495,615 | 1,315,362 | 4,947,012 | 3,736,304 | |||||||||||||||||||
Value of Shares Redeemed | (2,483,570 | ) | — | (2,635,459 | ) | (2,362,662 | ) | (1,859,387 | ) | |||||||||||||||
Net Increase (Decrease) From Capital Stock Transactions | (2,483,570 | ) | 37,495,615 | (1,320,097 | ) | 2,584,350 | 1,876,917 | |||||||||||||||||
Net Increase (Decrease) in Net Assets | (2,636,071 | ) | 37,418,812 | (893,014 | ) | 5,061,932 | 1,793,812 | |||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of Period | 37,418,812 | — | 27,489,735 | 22,427,803 | — | |||||||||||||||||||
End of Period | $ | 34,782,741 | $ | 37,418,812 | $ | 26,596,721 | $ | 27,489,735 | $ | 1,793,812 | ||||||||||||||
Undistributed Net Investment Income (Loss) | $ | 3,072 | $ | 8,116 | $ | (3,196 | ) | $ | (60,353 | ) | $ | (45,447 | ) | |||||||||||
Changes in Shares Outstanding | ||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 375,000 | — | 1,050,000 | 950,000 | — | |||||||||||||||||||
Shares Sold | — | 375,000 | 50,000 | 200,000 | 150,000 | |||||||||||||||||||
Shares Repurchased | (25,000 | ) | — | (100,000 | ) | (100,000 | ) | (75,000 | ) | |||||||||||||||
End of Period | 350,000 | 375,000 | 1,000,000 | 1,050,000 | 75,000 |
* | Commencement of operations. |
See accompanying Notes to Financial Statements.
141
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, 2015 | Year ended June 30, 2014 | Year ended June 30, 2015 | Year ended June 30, 2014 | Year ended June 30, 2015 | For the period March 4, 2014* to June 30, 2014 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net Investment Income | $ | 1,381,231 | $ | 831,991 | $ | 130,883 | $ | 48,335 | $ | 2,014,399 | $ | 675,347 | ||||||||||||
Net Realized Gain (Loss) | 22,749,625 | 10,973,199 | 353,345 | 70,960 | (3,511,431 | ) | (769,325 | ) | ||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | (7,341,753 | ) | 5,511,917 | (262,768 | ) | 1,505,268 | (1,445,645 | ) | 1,250,673 | |||||||||||||||
Net Increase (Decrease) In Net Assets Resulting From Operations | 16,789,103 | 17,317,107 | 221,460 | 1,624,563 | (2,942,677 | ) | 1,156,695 | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||||||
Net Investment Income | (1,045,971 | ) | (300,553 | ) | (94,665 | ) | (54,540 | ) | (2,337,383 | ) | (532,662 | ) | ||||||||||||
Total Distributions | (1,045,971 | ) | (300,553 | ) | (94,665 | ) | (54,540 | ) | (2,337,383 | ) | (532,662 | ) | ||||||||||||
CAPITAL STOCK TRANSACTIONS | ||||||||||||||||||||||||
Proceeds from Shares Issued | 709,868,546 | 402,230,886 | 3,760,440 | 5,438,789 | 5,215,701 | 72,033,809 | ||||||||||||||||||
Value of Shares Redeemed | (620,154,900 | ) | (307,889,188 | ) | (1,003,980 | ) | (1,694,175 | ) | (37,372,924 | ) | (622,577 | ) | ||||||||||||
Net Increase (Decrease) From Capital Stock Transactions | 89,713,646 | 94,341,698 | 2,756,460 | 3,744,614 | (32,157,223 | ) | 71,411,232 | |||||||||||||||||
Net Increase (Decrease) in Net Assets | 105,456,778 | 111,358,252 | 2,883,255 | 5,314,637 | (37,437,283 | ) | 72,035,265 | |||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of Period | 137,015,345 | 25,657,093 | 12,660,243 | 7,345,606 | 72,035,265 | — | ||||||||||||||||||
End of Period | $ | 242,472,123 | $ | 137,015,345 | $ | 15,543,498 | $ | 12,660,243 | $ | 34,597,982 | $ | 72,035,265 | ||||||||||||
Undistributed Net Investment Income (Loss) | $ | 887,332 | $ | 552,118 | $ | 36,011 | $ | — | $ | 3,170 | $ | 142,685 | ||||||||||||
Changes in Shares Outstanding | ||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 2,675,000 | 625,000 | 325,000 | 225,000 | 2,850,000 | — | ||||||||||||||||||
Shares Sold | 13,000,000 | 8,600,000 | 100,000 | 150,000 | 225,000 | 2,875,000 | ||||||||||||||||||
Shares Repurchased | (11,425,000 | ) | (6,550,000 | ) | (25,000 | ) | (50,000 | ) | (1,575,000 | ) | (25,000 | ) | ||||||||||||
End of Period | 4,250,000 | 2,675,000 | 400,000 | 325,000 | 1,500,000 | 2,850,000 |
* | Commencement of operations. |
See accompanying Notes to Financial Statements.
142
ADVISORSHARES TRUST
Statement of Cash Flows
![]() | ![]() | ![]() | ![]() | |||||||||
AdvisorShares Accuvest Global Long Short ETF | AdvisorShares QAM Equity Hedge ETF | AdvisorShares Ranger Equity Bear ETF | ||||||||||
Year ended June 30, 2015 | Year ended June 30, 2015 | Year ended June 30, 2015 | ||||||||||
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES: | ||||||||||||
Dividends and Interest received | $ | 382,234 | $ | 91,190 | $ | 123,905 | ||||||
Operating expenses paid | (287,941 | ) | (123,435 | ) | (2,510,483 | ) | ||||||
Net purchases of short-term investments | (1,629,823 | ) | (98,367 | ) | 46,446,269 | |||||||
Realized gain (loss) on swap contracts and option contracts | 703,697 | (10,033 | ) | — | ||||||||
Purchases of long-term investments | (72,886,453 | ) | (9,947,590 | ) | — | |||||||
Proceeds from disposition of long-term investments | 84,997,881 | 11,530,385 | — | |||||||||
Increase/Decrease in receivables for securities sold | — | (92,318 | ) | (2,941,386 | ) | |||||||
Increase/Decrease in payables for securities purchased | — | 92,454 | (8,761,900 | ) | ||||||||
Net Increase/Decrease in short sales | — | (334,008 | ) | (41,192,443 | ) | |||||||
Capital gains paid | — | 5,314 | — | |||||||||
Dividends paid | — | — | (643,731 | ) | ||||||||
Interest paid | (2,100 | ) | (11,570 | ) | (1,137,606 | ) | ||||||
Net Cash Flows Provided (Used) By Operating Activities | 11,277,495 | 1,102,022 | (10,617,375 | ) | ||||||||
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES: | ||||||||||||
Net proceeds from shares issued | 12,476,577 | 1,427,899 | 49,008,377 | |||||||||
Value of shares redeemed | (23,467,035 | ) | (2,808,730 | ) | (72,068,067 | ) | ||||||
Cash dividends paid to shareholders | — | (64,929 | ) | — | ||||||||
Deposits with brokers for swap contracts and short sales | (251,597 | ) | 350,254 | 33,677,065 | ||||||||
Net Cash Flows Provided (Used) By Financing Activities | (11,242,055 | ) | (1,095,506 | ) | 10,617,375 | |||||||
NET INCREASE/DECREASE IN CASH | 35,440 | 6,516 | – | |||||||||
Cash, Beginning of year | 11,952 | 2,864 | 76,109,147 | |||||||||
Cash, End of year | $ | 47,392 | $ | 9,380 | $ | 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 resulting from Operations | $ | (1,013,163 | ) | $ | 73,875 | $ | (10,833,548 | ) | ||||
Increase/Decrease in investments, at value | 12,286,472 | 1,037,256 | 12,027,213 | |||||||||
Increase/Decrease in payable for securities purchased | — | 92,454 | (8,761,900 | ) | ||||||||
Increase/Decrease in receivable for securities sold | — | (92,318 | ) | (2,941,386 | ) | |||||||
Increase/Decrease in dividends and interest receivable | 128,330 | 1,141 | 329 | |||||||||
Increase/Decrease in unrealized appreciation (depreciation) on swaps | (103,629 | ) | — | — | ||||||||
Increase/Decrease in due from/to investment advisor | (16,815 | ) | (5,618 | ) | (45,447 | ) | ||||||
Increase/Decrease in prepaid expense | 873 | 78 | 263 | |||||||||
Increase/Decrease in interest payable | (2,100 | ) | — | (25,393 | ) | |||||||
Increase/Decrease in dividends payable | — | — | (34,833 | ) | ||||||||
Increase/Decrease in accrued expenses | (2,473 | ) | (4,846 | ) | (2,673 | ) | ||||||
Total Adjustments | 12,290,658 | 1,028,147 | 216,173 | |||||||||
Net Cash Flows Provided (Used) By Operating Activities | $ | 11,277,495 | $ | 1,102,022 | $ | (10,617,375 | ) |
See accompanying Notes to Financial Statements.
143
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
AdvisorShares Accuvest Global Long Short ETF | ||||||||||||||||||||
Year ended June 30, 2015 | 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 | $ | 20.72 | $ | 21.83 | $ | 21.20 | $ | 20.86 | $ | 25.00 | ||||||||||
Investment Operations | ||||||||||||||||||||
Net Investment Income (Loss)(2) | (0.02 | ) | (0.08 | ) | (0.34 | ) | (0.68 | ) | (0.67 | ) | ||||||||||
Net Realized and Unrealized Gain (Loss) | (0.85 | ) | (1.03 | ) | 0.97 | 1.33 | (3.47 | ) | ||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(4) | (0.87 | ) | (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 | $ | 19.85 | $ | 20.72 | $ | 21.83 | $ | 21.20 | $ | 20.86 | ||||||||||
Market Value, End of Period | $ | 19.85 | $ | 20.72 | $ | 21.98 | $ | 21.22 | $ | 20.86 | ||||||||||
Total Return | ||||||||||||||||||||
Total Investment Return Based on Net Asset Value(5) | (4.20 | )% | (5.08 | )% | 2.97 | % | 3.15 | % | (16.56 | )% | ||||||||||
Total Investment Return Based on Market(5) | (4.20 | )% | (5.73 | )% | 3.58 | % | 3.24 | % | (16.56 | )% | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net Assets, End of Period (000’s omitted) | $ | 13,892 | $ | 25,896 | $ | 42,573 | $ | 18,022 | $ | 9,385 | ||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||
Expenses, net of expense waivers and reimbursements(6) | 1.50 | % | 1.73 | %(8) | 3.96 | %(8) | 5.77 | %(8) | 3.10 | %(8) | ||||||||||
Expenses, prior to expense waivers and reimbursements(6) | 2.14 | % | 1.89 | %(8) | 4.25 | %(8) | 8.15 | %(8) | 3.33 | %(8) | ||||||||||
Net Investment Income (Loss)(6) | (0.09 | )% | (0.39 | )% | (1.57 | )% | (3.20 | )% | (2.82 | )% | ||||||||||
Portfolio Turnover Rate(7) | 379 | % | 226 | % | 270 | % | 365 | % | 751 | % |
See accompanying Notes to Financial Statements.
144
ADVISORSHARES TRUST
Financial Highlights
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||
AdvisorShares Athena High Dividend ETF | AdvisorShares EquityPro ETF | |||||||||||||||||||
For the period July 29, 2014* to June 30, 2015 | Year ended June 30, 2015 | Year ended June 30, 2014 | For the period July 10, 2012* to June 30, 2013 | |||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 25.00 | $ | 32.11 | $ | 27.13 | $ | 25.00 | ||||||||||||
Investment Operations | ||||||||||||||||||||
Net Investment Income (Loss)(2) | 0.90 | 0.39 | 1.24 | 0.22 | ||||||||||||||||
Net Realized and Unrealized Gain (Loss) | (6.03 | ) | (1.04 | ) | 4.08 | 2.06 | ||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(4) | (5.13 | ) | (0.65 | ) | 5.32 | 2.28 | ||||||||||||||
Distributions from Net Investment Income | (0.79 | ) | (0.28 | ) | (0.34 | ) | (0.13 | ) | ||||||||||||
Distributions from Realized Capital Gains | — | (0.49 | ) | — | (0.02 | ) | ||||||||||||||
Total Distributions | (0.79 | ) | (0.77 | ) | (0.34 | ) | (0.15 | ) | ||||||||||||
Net Asset Value, End of Period | $ | 19.08 | $ | 30.69 | $ | 32.11 | $ | 27.13 | ||||||||||||
Market Value, End of Period | $ | 19.08 | $ | 30.70 | $ | 32.11 | $ | 27.12 | ||||||||||||
Total Return | ||||||||||||||||||||
Total Investment Return Based on Net Asset Value(5) | (20.71 | )% | (2.01 | )% | 19.71 | % | 9.16 | % | ||||||||||||
Total Investment Return Based on Market(5) | (20.65 | )% | (1.89 | )% | 19.76 | % | 9.11 | % | ||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net Assets, End of Period (000’s omitted) | $ | 15,265 | $ | 19,179 | $ | 20,070 | $ | 1,357 | ||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||
Expenses, net of expense waivers and reimbursements(6) | 0.99 | % | 1.25 | % | 1.25 | % | 1.25 | % | ||||||||||||
Expenses, prior to expense waivers and reimbursements(6) | 1.71 | % | 1.13 | % | 1.92 | % | 6.95 | % | ||||||||||||
Net Investment Income (Loss)(6) | 4.60 | % | 1.25 | % | 4.13 | % | 0.88 | % | ||||||||||||
Portfolio Turnover Rate(7) | 193 | % | 349 | % | 21 | % | 43 | % |
See accompanying Notes to Financial Statements.
145
ADVISORSHARES TRUST
Financial Highlights
![]() | ![]() | ![]() | ||||||
AdvisorShares Gartman Gold/Euro ETF (Consolidated) | ||||||||
Year ended June 30, 2015 | 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 | $ | 13.02 | $ | 12.80 | ||||
Investment Operations | ||||||||
Net Investment Income (Loss)(2) | (0.08 | ) | (0.03 | ) | ||||
Net Realized and Unrealized Gain | 0.97 | 0.25 | ||||||
Net Increase in Net Assets Resulting from Investment Operations(4) | 0.89 | 0.22 | ||||||
Distributions from Net Investment Income | (0.14 | ) | — | |||||
Distributions from Realized Capital Gains | (0.63 | ) | — | |||||
Total Distributions | (0.77 | ) | — | |||||
Net Asset Value, End of Period | $ | 13.14 | $ | 13.02 | ||||
Market Value, End of Period | $ | 13.11 | $ | 13.07 | ||||
Total Return | ||||||||
Total Investment Return Based on Net Asset Value(5) | 7.33 | % | 1.72 | % | ||||
Total Investment Return Based on Market(5) | 6.56 | % | 2.11 | % | ||||
Ratios/Supplemental Data | ||||||||
Net Assets, End of Period (000’s omitted) | $ | 16,758 | $ | 1,302 | ||||
Ratio to Average Net Assets of: | ||||||||
Expenses, net of expense waivers and reimbursements(6) | 0.65 | % | 0.65 | % | ||||
Expenses, prior to expense waivers and reimbursements(6) | 2.21 | % | 10.72 | % | ||||
Net Investment Income (Loss)(6) | (0.63 | )% | (0.63 | )% | ||||
Portfolio Turnover Rate(7) | 0 | % | 0 | % |
See accompanying Notes to Financial Statements.
146
ADVISORSHARES TRUST
Financial Highlights
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||||||
AdvisorShares Gartman Gold/Yen ETF (Consolidated) | AdvisorShares Global Echo ETF | |||||||||||||||||||||||||||
Year ended June 30, 2015 | For the period February 11, 2014* to June 30, 2014 | Year ended June 30, 2015 | Year ended June 30, 2014 | Year ended June 30, 2013 | For the period May 23, 2012* to June 30, 2012 | |||||||||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 12.94 | $ | 12.80 | $ | 61.44 | $ | 54.38 | $ | 50.80 | $ | 50.00 | ||||||||||||||||
Investment Operations | ||||||||||||||||||||||||||||
Net Investment Income (Loss)(2) | (0.08 | ) | (0.03 | ) | (0.06 | ) | 0.22 | (0.07 | ) | (0.02 | ) | |||||||||||||||||
Net Realized and Unrealized Gain | 0.86 | 0.17 | 1.92 | 6.86 | 3.88 | 0.82 | ||||||||||||||||||||||
Net Increase in Net Assets Resulting from Investment Operations(4) | 0.78 | 0.14 | 1.86 | 7.08 | 3.81 | 0.80 | ||||||||||||||||||||||
Distributions from Net Investment Income | (0.04 | ) | — | (0.43 | ) | (0.02 | ) | — | — | |||||||||||||||||||
Distributions from Realized Capital Gains | (0.52 | ) | — | — | — | (0.23 | ) | — | ||||||||||||||||||||
Total Distributions | (0.56 | ) | — | (0.43 | ) | (0.02 | ) | (0.23 | ) | — | ||||||||||||||||||
Net Asset Value, End of Period | $ | 13.16 | $ | 12.94 | $ | 62.87 | $ | 61.44 | $ | 54.38 | $ | 50.80 | ||||||||||||||||
Market Value, End of Period | $ | 13.19 | $ | 13.04 | $ | 62.28 | $ | 61.46 | $ | 54.53 | $ | 50.99 | ||||||||||||||||
Total Return | ||||||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(5) | 6.06 | % | 1.09 | % | 3.05 | % | 13.03 | % | 7.54 | % | 1.60 | % | ||||||||||||||||
Total Investment Return Based on Market(5) | 5.45 | % | 1.88 | % | 2.06 | % | 12.75 | % | 7.43 | % | 1.98 | % | ||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||||||
Net Assets, End of Period (000’s omitted) | $ | 23,022 | $ | 3,881 | $ | 7,859 | $ | 9,216 | $ | 5,438 | $ | 5,080 | ||||||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements(6) | 0.65 | % | 0.65 | % | 1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | ||||||||||||||||
Expenses, prior to expense waivers and reimbursements(6) | 1.99 | % | 4.74 | % | 1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | ||||||||||||||||
Net Investment Income (Loss)(6) | (0.62 | )% | (0.63 | )% | (0.09 | )% | 0.37 | % | (0.13 | )% | (0.32 | )% | ||||||||||||||||
Portfolio Turnover Rate(7) | 0 | % | 0 | % | 68 | % | 157 | % | 180 | % | 70 | % |
See accompanying Notes to Financial Statements.
147
ADVISORSHARES TRUST
Financial Highlights
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AdvisorShares Madrona Domestic ETF | ||||||||||||||||||||
Year ended June 30, 2015 | 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 | $ | 41.26 | $ | 32.34 | $ | 25.31 | $ | 26.07 | $ | 25.00 | ||||||||||
Investment Operations | ||||||||||||||||||||
Net Investment Income(2) | 0.13 | 0.11 | 0.15 | 0.10 | 0.00 | (3) | ||||||||||||||
Net Realized and Unrealized Gain (Loss) | 2.30 | 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(4) | 2.43 | 9.02 | 7.16 | (0.69 | ) | 1.07 | ||||||||||||||
Distributions from Net Investment Income | (0.14 | ) | (0.10 | ) | (0.13 | ) | (0.07 | ) | — | |||||||||||
Distributions from Realized Capital Gains | — | — | — | — | — | |||||||||||||||
Total Distributions | (0.14 | ) | (0.10 | ) | (0.13 | ) | (0.07 | ) | — | |||||||||||
Net Asset Value, End of Period | $ | 43.55 | $ | 41.26 | $ | 32.34 | $ | 25.31 | $ | 26.07 | ||||||||||
Market Value, End of Period | $ | 43.55 | $ | 41.26 | $ | 32.34 | $ | 25.28 | $ | 26.07 | ||||||||||
Total Return | ||||||||||||||||||||
Total Investment Return Based on Net Asset Value(5) | 5.89 | % | 27.93 | % | 28.37 | % | (2.65 | )% | 4.28 | % | ||||||||||
Total Investment Return Based on Market(5) | 5.89 | % | 27.93 | % | 28.52 | % | (2.76 | )% | 4.28 | % | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net Assets, End of Period (000’s omitted) | $ | 31,574 | $ | 24,755 | $ | 18,593 | $ | 15,188 | $ | 2,607 | ||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||
Expenses, net of expense waivers and reimbursements(6) | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | ||||||||||
Expenses, prior to expense waivers and reimbursements(6) | 1.37 | % | 1.42 | % | 1.61 | % | 1.46 | % | 10.96 | % | ||||||||||
Net Investment Income(6) | 0.30 | % | 0.31 | % | 0.51 | % | 0.40 | % | 0.23 | % | ||||||||||
Portfolio Turnover Rate(7) | 15 | % | 14 | % | 33 | % | 40 | % | 0 | % |
See accompanying Notes to Financial Statements.
148
ADVISORSHARES TRUST
Financial Highlights
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AdvisorShares Madrona Global Bond ETF | AdvisorShares Madrona International ETF | |||||||||||||||||||||||||||||||||||||||||||
Year ended June 30, 2015 | 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, 2015 | 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 | $ | 26.36 | $ | 25.05 | $ | 25.69 | $ | 25.01 | $ | 25.00 | $ | 29.66 | $ | 23.97 | $ | 21.06 | $ | 26.17 | $ | 25.00 | ||||||||||||||||||||||||
Investment Operations | ||||||||||||||||||||||||||||||||||||||||||||
Net Investment Income(2) | 0.74 | 0.86 | 0.72 | 0.71 | 0.01 | 0.39 | 0.41 | 0.39 | 0.32 | 0.01 | ||||||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | (1.39 | ) | 1.30 | (0.66 | ) | 0.67 | — | (1.92 | ) | 5.77 | 2.82 | (5.33 | ) | 1.16 | ||||||||||||||||||||||||||||||
Distributions of Net Realized Gains by other investment companies | 0.04 | — | 0.01 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(4) | (0.61 | ) | 2.16 | 0.07 | 1.38 | 0.01 | (1.53 | ) | 6.18 | 3.21 | (5.01 | ) | 1.17 | |||||||||||||||||||||||||||||||
Distributions from Net Investment Income | (0.78 | ) | (0.85 | ) | (0.71 | ) | (0.70 | ) | — | (0.47 | ) | (0.49 | ) | (0.30 | ) | (0.08 | ) | — | ||||||||||||||||||||||||||
Distributions from Realized Capital Gains | — | — | (0.00 | )(3) | — | — | — | — | — | (0.02 | ) | — | ||||||||||||||||||||||||||||||||
Total Distributions | (0.78 | ) | (0.85 | ) | (0.71 | ) | (0.70 | ) | — | (0.47 | ) | (0.49 | ) | (0.30 | ) | (0.10 | ) | — | ||||||||||||||||||||||||||
Net Asset Value, End of Period | $ | 24.97 | $ | 26.36 | $ | 25.05 | $ | 25.69 | $ | 25.01 | $ | 27.66 | $ | 29.66 | $ | 23.97 | $ | 21.06 | $ | 26.17 | ||||||||||||||||||||||||
Market Value, End of Period | $ | 24.96 | $ | 26.42 | $ | 24.96 | $ | 25.68 | $ | 25.02 | $ | 27.65 | $ | 29.58 | $ | 23.95 | $ | 21.11 | $ | 26.18 | ||||||||||||||||||||||||
Total Return | ||||||||||||||||||||||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(5) | (2.37 | )% | 8.80 | % | 0.20 | % | 5.59 | % | 0.04 | % | (5.06 | )% | 25.91 | % | 15.24 | % | (19.11 | )% | 4.68 | % | ||||||||||||||||||||||||
Total Investment Return Based on Market(5) | (2.63 | )% | 9.44 | % | (0.13 | )% | 5.49 | % | 0.08 | % | (4.82 | )% | 25.64 | % | 14.86 | % | (18.95 | )% | 4.72 | % | ||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||
Net Assets, End of Period (000’s omitted) | $ | 28,096 | $ | 24,383 | $ | 22,543 | $ | 21,195 | $ | 2,501 | $ | 19,365 | $ | 19,279 | $ | 14,978 | $ | 14,219 | $ | 2,617 | ||||||||||||||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements(6) | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | ||||||||||||||||||||||||
Expenses, prior to expense waivers and reimbursements(6) | 0.99 | % | 1.07 | % | 1.02 | % | 0.99 | % | 11.08 | % | 1.69 | % | 1.55 | % | 1.65 | % | 1.54 | % | 10.99 | % | ||||||||||||||||||||||||
Net Investment Income(6) | 2.88 | % | 3.36 | % | 2.73 | % | 2.81 | % | 1.68 | % | 1.41 | % | 1.48 | % | 1.65 | % | 1.48 | % | 1.14 | % | ||||||||||||||||||||||||
Portfolio Turnover Rate(7) | 34 | % | 20 | % | 28 | % | 12 | % | 0 | % | 85 | % | 182 | % | 93 | % | 110 | % | 19 | % |
See accompanying Notes to Financial Statements.
149
ADVISORSHARES TRUST
Financial Highlights
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AdvisorShares Meidell Tactical Advantage ETF | ||||||||||||||||||||
Year ended June 30, 2015 | 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 | $ | 30.00 | $ | 28.33 | $ | 25.12 | $ | 25.06 | $ | 25.00 | ||||||||||
Investment Operations | ||||||||||||||||||||
Net Investment Income(2) | 0.17 | 0.14 | 0.14 | 0.00 | (3) | 0.01 | ||||||||||||||
Net Realized and Unrealized Gain (Loss) | 0.87 | 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(4) | 1.04 | 1.67 | 3.44 | 0.08 | 0.06 | |||||||||||||||
Distributions from Net Investment Income | (0.18 | ) | — | (0.23 | ) | (0.02 | ) | — | ||||||||||||
Distributions from Realized Capital Gains | — | — | — | — | — | |||||||||||||||
Total Distributions | (0.18 | ) | — | (0.23 | ) | (0.02 | ) | — | ||||||||||||
Net Asset Value, End of Period | $ | 30.86 | $ | 30.00 | $ | 28.33 | $ | 25.12 | $ | 25.06 | ||||||||||
Market Value, End of Period | $ | 30.87 | $ | 30.00 | $ | 28.37 | $ | 25.48 | $ | 25.07 | ||||||||||
Total Return | ||||||||||||||||||||
Total Investment Return Based on Net Asset Value(5) | 3.47 | % | 5.89 | % | 13.81 | % | 0.31 | % | 0.24 | % | ||||||||||
Total Investment Return Based on Market(5) | 3.52 | % | 5.75 | % | 12.33 | % | 1.71 | % | 0.28 | % | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net Assets, End of Period (000’s omitted) | $ | 16,972 | $ | 15,750 | $ | 9,209 | $ | 5,652 | $ | 2,506 | ||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||
Expenses, net of expense waivers and reimbursements(6) | 1.35 | % | 1.35 | % | 1.35 | % | 1.35 | % | 1.35 | % | ||||||||||
Expenses, prior to expense waivers and reimbursements(6) | 1.99 | % | 2.12 | % | 2.99 | % | 3.69 | % | 13.70 | % | ||||||||||
Net Investment Income(6) | 0.57 | % | 0.49 | % | 0.51 | % | 0.01 | % | 1.00 | % | ||||||||||
Portfolio Turnover Rate(7) | 434 | % | 687 | % | 605 | % | 817 | % | 5 | % |
See accompanying Notes to Financial Statements.
150
ADVISORSHARES TRUST
Financial Highlights
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AdvisorShares Morgan Creek Global Tactical ETF(1) | AdvisorShares Newfleet Multi-Sector Income ETF | |||||||||||||||||||||||||||||||||||
Year ended June 30, 2015 | 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 | Year ended June 30, 2015 | 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 | $ | 26.19 | $ | 23.78 | $ | 23.69 | $ | 25.92 | $ | 25.10 | $ | 49.94 | $ | 49.04 | $ | 50.00 | ||||||||||||||||||||
Investment Operations | ||||||||||||||||||||||||||||||||||||
Net Investment Income(2) | 0.06 | 0.30 | 0.38 | 0.21 | 0.25 | 1.28 | 1.26 | 0.28 | ||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | (1.06 | ) | 2.11 | 0.27 | (2.24 | ) | 0.79 | (0.77 | ) | 0.99 | (0.99 | ) | ||||||||||||||||||||||||
Distributions of Net Realized Gains by other investment companies | 0.07 | — | 0.00 | (3) | — | — | — | — | — | |||||||||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(4) | (0.93 | ) | 2.41 | 0.65 | (2.03 | ) | 1.04 | 0.51 | 2.25 | (0.71 | ) | |||||||||||||||||||||||||
Distributions from Net Investment Income | (0.64 | ) | — | (0.56 | ) | — | (0.22 | ) | (1.37 | ) | (1.35 | ) | (0.25 | ) | ||||||||||||||||||||||
Distributions from Realized Capital Gains | — | — | — | (0.20 | ) | — | — | — | — | |||||||||||||||||||||||||||
Total Distributions | (0.64 | ) | — | (0.56 | ) | (0.20 | ) | (0.22 | ) | (1.37 | ) | (1.35 | ) | (0.25 | ) | |||||||||||||||||||||
Net Asset Value, End of Period | $ | 24.62 | $ | 26.19 | $ | 23.78 | $ | 23.69 | $ | 25.92 | $ | 49.08 | $ | 49.94 | $ | 49.04 | ||||||||||||||||||||
Market Value, End of Period | $ | 24.60 | $ | 26.16 | $ | 23.79 | $ | 23.64 | $ | 25.93 | $ | 49.04 | $ | 49.94 | $ | 49.01 | ||||||||||||||||||||
Total Return | ||||||||||||||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(5) | (3.59 | )% | 10.13 | % | 2.68 | % | (7.84 | )% | 4.17 | % | 1.04 | % | 4.65 | % | (1.42 | )% | ||||||||||||||||||||
Total Investment Return Based on Market(5) | (3.52 | )% | 9.96 | % | 2.92 | % | (8.07 | )% | 4.20 | % | 0.95 | % | 4.70 | % | (1.48 | )% | ||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||
Net Assets, End of Period (000’s omitted) | $ | 12,309 | $ | 36,667 | $ | 49,942 | $ | 78,171 | $ | 178,837 | $ | 215,941 | $ | 154,811 | $ | 83,362 | ||||||||||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements(6) | 1.25 | % | 1.25 | % | 1.15 | % | 0.99 | % | 1.02 | % | 0.75 | % | 0.75 | % | 0.75 | % | ||||||||||||||||||||
Expenses, prior to expense waivers and reimbursements(6) | 2.23 | % | 1.24 | % | 1.15 | % | 1.08 | % | 1.04 | % | 0.82 | % | 0.83 | % | 1.13 | % | ||||||||||||||||||||
Net Investment Income(6) | 0.23 | % | 1.19 | % | 1.54 | % | 0.87 | % | 1.45 | % | 2.60 | % | 2.55 | % | 1.98 | % | ||||||||||||||||||||
Portfolio Turnover Rate(7) | 244 | % | 232 | % | 236 | % | 475 | % | 187 | % | 49 | % | 85 | % | 105 | % |
See accompanying Notes to Financial Statements.
151
ADVISORSHARES TRUST
Financial Highlights
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AdvisorShares Pacific Asset Enhanced Floating Rate ETF | ||||
For the period February 18, 2015* to June 30, 2015 | ||||
Selected Data for a Share of Capital Stock Outstanding | ||||
Net Asset Value, Beginning of Period | $ | 50.00 | ||
Investment Operations | ||||
Net Investment Income (Loss)(2) | 0.62 | |||
Net Realized and Unrealized Gain (Loss) | (0.38 | ) | ||
Distributions of Net Realized Gains by other investment companies | — | |||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(4) | 0.24 | |||
Distributions from Net Investment Income | (0.58 | ) | ||
Distributions from Realized Capital Gains | — | |||
Total Distributions | (0.58 | ) | ||
Net Asset Value, End of Period | $ | 49.66 | ||
Market Value, End of Period | $ | 49.78 | ||
Total Return | ||||
Total Investment Return Based on Net Asset Value(5) | 0.47 | % | ||
Total Investment Return Based on Market(5) | 0.71 | % | ||
Ratios/Supplemental Data | ||||
Net Assets, End of Period (000’s omitted) | $ | 27,312 | ||
Ratio to Average Net Assets of: | ||||
Expenses, net of expense waivers and reimbursements(6) | 1.10 | % | ||
Expenses, prior to expense waivers and reimbursements(6) | 1.41 | % | ||
Net Investment Income(6) | 3.46 | % | ||
Portfolio Turnover Rate(7) | 102 | % |
See accompanying Notes to Financial Statements.
152
ADVISORSHARES TRUST
Financial Highlights
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AdvisorShares Peritus High Yield ETF | AdvisorShares Pring Turner Business Cycle ETF | |||||||||||||||||||||||||||||||||||
Year ended June 30, 2015 | 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, 2015 | 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 | $ | 53.27 | $ | 50.43 | $ | 48.59 | $ | 51.59 | $ | 50.00 | $ | 29.00 | $ | 25.46 | $ | 25.00 | ||||||||||||||||||||
Investment Operations | ||||||||||||||||||||||||||||||||||||
Net Investment Income (Loss)(2) | 3.59 | 4.14 | 4.28 | 4.20 | 2.25 | 0.28 | 0.24 | 0.18 | ||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | (12.33 | ) | 2.69 | 1.66 | (2.74 | ) | 1.30 | (3.87 | ) | 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(4) | (8.74 | ) | 6.83 | 5.94 | 1.46 | 3.55 | (3.59 | ) | 3.84 | 0.46 | ||||||||||||||||||||||||||
Distributions from Net Investment Income | (3.88 | ) | (3.95 | ) | (4.09 | ) | (3.99 | ) | (1.96 | ) | (0.31 | ) | (0.30 | ) | — | |||||||||||||||||||||
Distributions from Realized Capital Gains | — | (0.04 | ) | (0.01 | ) | (0.47 | ) | — | — | — | — | |||||||||||||||||||||||||
Total Distributions | (3.88 | ) | (3.99 | ) | (4.10 | ) | (4.46 | ) | (1.96 | ) | (0.31 | ) | (0.30 | ) | — | |||||||||||||||||||||
Net Asset Value, End of Period | $ | 40.65 | $ | 53.27 | $ | 50.43 | $ | 48.59 | $ | 51.59 | $ | 25.10 | $ | 29.00 | $ | 25.46 | ||||||||||||||||||||
Market Value, End of Period | $ | 40.58 | $ | 53.27 | $ | 49.91 | $ | 48.64 | $ | 51.87 | 25.11 | $ | 29.04 | $ | 25.47 | |||||||||||||||||||||
Total Return | ||||||||||||||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(5) | (16.82 | )% | 14.04 | % | 12.58 | % | 3.27 | % | 7.16 | % | (12.42 | )% | 15.19 | % | 1.84 | % | ||||||||||||||||||||
Total Investment Return Based on Market(5) | (16.88 | )% | 15.20 | % | 11.29 | % | 2.75 | % | 7.73 | % | (12.50 | )% | 15.30 | % | 1.88 | % | ||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||
Net Assets, End of Period (000’s omitted) | $ | 375,991 | $ | 1,075,997 | $ | 259,729 | $ | 92,328 | $ | 43,851 | $ | 4,393 | $ | 5,074 | $ | 5,729 | ||||||||||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements(6) | 1.23 | % | 1.18 | % | 1.25 | % | 1.35 | % | 1.34 | % | 1.49 | % | 1.49 | % | 1.49 | % | ||||||||||||||||||||
Expenses, prior to expense waivers and reimbursements(6) | 1.23 | % | 1.18 | % | 1.23 | % | 1.35 | % | 1.57 | % | 3.20 | % | 2.55 | % | 4.70 | % | ||||||||||||||||||||
Net Investment Income(6) | 7.65 | % | 7.95 | % | 8.44 | % | 8.64 | % | 7.47 | % | 1.04 | % | 0.91 | % | 1.35 | % | ||||||||||||||||||||
Portfolio Turnover Rate(7) | 88 | % | 87 | % | 37 | % | 80 | % | 81 | % | 73 | % | 35 | % | 26 | % |
See accompanying Notes to Financial Statements.
153
ADVISORSHARES TRUST
Financial Highlights
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AdvisorShares QAM Equity Hedge ETF | ||||||||||||
Year ended June 30, 2015 | 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 | $ | 28.48 | $ | 26.21 | $ | 25.00 | ||||||
Investment Operations | ||||||||||||
Net Investment Income (Loss)(2) | (0.13 | ) | (0.20 | ) | (0.12 | ) | ||||||
Net Realized and Unrealized Gain (Loss) | 0.54 | 2.95 | 1.51 | |||||||||
Distributions of Net Realized Gains by other investment companies | 0.01 | — | — | |||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(4) | 0.42 | 2.75 | 1.39 | |||||||||
Distributions from Net Investment Income | — | — | (0.08 | ) | ||||||||
Distributions from Realized Capital Gains | (0.22 | ) | (0.48 | ) | (0.10 | ) | ||||||
Total Distributions | (0.22 | ) | (0.48 | ) | (0.18 | ) | ||||||
Net Asset Value, End of Period | $ | 28.68 | $ | 28.48 | $ | 26.21 | ||||||
Market Value, End of Period | $ | 28.68 | $ | 28.45 | $ | 26.16 | ||||||
Total Return | ||||||||||||
Total Investment Return Based on Net Asset Value(5) | 1.48 | % | 10.52 | % | 5.57 | % | ||||||
Total Investment Return Based on Market(5) | 1.60 | % | 10.62 | % | 5.36 | % | ||||||
Ratios/Supplemental Data | ||||||||||||
Net Assets, End of Period (000’s omitted) | $ | 7,171 | $ | 8,543 | $ | 3,932 | ||||||
Ratio to Average Net Assets of: | ||||||||||||
Expenses, net of expense waivers and reimbursements(6) | 1.65 | %(9) | 1.70 | %(9) | 1.56 | %(9) | ||||||
Expenses, prior to expense waivers and reimbursements(6) | 2.83 | %(9) | 2.66 | %(9) | 4.61 | %(9) | ||||||
Net Investment Income (Loss)(6) | (0.46 | )% | (0.71 | )% | (0.50 | )% | ||||||
Portfolio Turnover Rate(7) | 131 | % | 179 | % | 114 | % |
See accompanying Notes to Financial Statements.
154
ADVISORSHARES TRUST
Financial Highlights
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AdvisorShares Ranger Equity Bear ETF | AdvisorShares Sage Core Reserves ETF | |||||||||||||||||||||||||||||||
Year ended June 30, 2015 | 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 | Year ended June 30, 2015 | For the period January 14, 2014* to June 30, 2014 | ||||||||||||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 11.78 | $ | 16.17 | $ | 23.33 | $ | 22.65 | $ | 25.00 | $ | 99.78 | $ | 100.00 | ||||||||||||||||||
Investment Operations | ||||||||||||||||||||||||||||||||
Net Investment Income (Loss)(2) | (0.31 | ) | (0.38 | ) | (0.60 | ) | (0.72 | ) | (0.30 | ) | 0.12 | 0.36 | ||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | (0.59 | ) | (4.01 | ) | (6.56 | ) | 1.40 | (2.05 | ) | (0.12 | ) | (0.25 | ) | |||||||||||||||||||
Distributions of Net Realized Gains by other investment companies | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(4) | (0.90 | ) | (4.39 | ) | (7.16 | ) | 0.68 | (2.35 | ) | — | 0.11 | |||||||||||||||||||||
Distributions from Net Investment Income | — | — | — | — | — | (0.40 | ) | (0.33 | ) | |||||||||||||||||||||||
Distributions from Realized Capital Gains | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Total Distributions | — | — | — | — | — | (0.40 | ) | (0.33 | ) | |||||||||||||||||||||||
Net Asset Value, End of Period | $ | 10.88 | $ | 11.78 | $ | 16.17 | $ | 23.33 | $ | 22.65 | $ | 99.38 | $ | 99.78 | ||||||||||||||||||
Market Value, End of Period | $ | 10.88 | $ | 11.79 | $ | 16.16 | $ | 23.34 | $ | 22.65 | $ | 99.40 | $ | 99.80 | ||||||||||||||||||
Total Return | ||||||||||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(5) | (7.64 | )% | (27.15 | )% | (30.69 | )% | 3.00 | % | (9.40 | )% | (0.00 | )%(3) | 0.11 | % | ||||||||||||||||||
Total Investment Return Based on Market(5) | (7.72 | )% | (27.04 | )% | (30.76 | )% | 3.05 | % | (9.40 | )% | (0.00 | )%(3) | 0.13 | % | ||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||
Net Assets, End of Period (000’s omitted) | $ | 128,059 | $ | 161,952 | $ | 218,357 | $ | 313,223 | $ | 50,389 | $ | 34,783 | $ | 37,419 | ||||||||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements(6) | 2.80 | %(10) | 2.87 | %(10) | 3.12 | %(10) | 3.07 | %(10) | 3.07 | %(10) | 0.35 | % | 0.35 | % | ||||||||||||||||||
Expenses, prior to expense waivers and reimbursements(6) | 2.80 | %(10) | 2.87 | %(10) | 3.12 | %(10) | 3.06 | %(10) | 3.16 | %(10) | 0.73 | % | 0.73 | % | ||||||||||||||||||
Net Investment Income (Loss)(6) | (2.72 | )% | (2.81 | )% | (3.11 | )% | (3.06 | )% | (3.07 | )% | 0.12 | % | 0.78 | % | ||||||||||||||||||
Portfolio Turnover Rate(7) | 419 | % | 484 | % | 697 | % | 756 | % | 635 | % | 59 | % | 12 | % |
See accompanying Notes to Financial Statements.
155
ADVISORSHARES TRUST
Financial Highlights
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AdvisorShares STAR Global Buy-Write ETF | ||||||||||||
Year ended June 30, 2015 | 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 | $ | 26.18 | $ | 23.61 | $ | 25.00 | ||||||
Investment Operations | ||||||||||||
Net Investment Income (Loss)(2) | 0.01 | (0.10 | ) | (0.03 | ) | |||||||
Net Realized and Unrealized Gain (Loss) | 0.41 | 2.67 | (1.16 | ) | ||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(4) | 0.42 | 2.57 | (1.19 | ) | ||||||||
Distributions from Net Investment Income | — | — | (0.17 | ) | ||||||||
Distributions from Realized Capital Gains | — | — | (0.03 | ) | ||||||||
Total Distributions | — | — | (0.20 | ) | ||||||||
Net Asset Value, End of Period | $ | 26.60 | $ | 26.18 | $ | 23.61 | ||||||
Market Value, End of Period | $ | 26.61 | $ | 26.22 | $ | 23.62 | ||||||
Total Return | ||||||||||||
Total Investment Return Based on Net Asset Value(5) | 1.60 | % | 10.89 | % | (4.80 | )% | ||||||
Total Investment Return Based on Market(5) | 1.49 | % | 11.01 | % | (4.76 | )% | ||||||
Ratios/Supplemental Data | ||||||||||||
Net Assets, End of Period (000’s omitted) | $ | 26,597 | $ | 27,490 | $ | 22,428 | ||||||
Ratio to Average Net Assets of: | ||||||||||||
Expenses, net of expense waivers and reimbursements(6) | 1.85 | % | 1.85 | % | 1.85 | % | ||||||
Expenses, prior to expense waivers and reimbursements(6) | 1.87 | % | 1.79 | % | 2.35 | % | ||||||
Net Investment Income (Loss)(6) | 0.03 | % | (0.42 | )% | (0.14 | )% | ||||||
Portfolio Turnover Rate(7) | 45 | % | 166 | % | 40 | % |
See accompanying Notes to Financial Statements.
156
ADVISORSHARES TRUST
Financial Highlights
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AdvisorShares Sunrise Global Multi-Strategy ETF | AdvisorShares TrimTabs Float Shrink ETF | |||||||||||||||||||||||
For the period July 8, 2014* to June 30, 2015 | Year ended June 30, 2015 | Year ended June 30, 2014 | Year ended June 30, 2013 | For the period October 4, 2011* to June 30, 2012 | ||||||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 25.00 | $ | 51.22 | $ | 41.05 | $ | 33.16 | $ | 26.20 | ||||||||||||||
Investment Operations | ||||||||||||||||||||||||
Net Investment Income (Loss)(2) | (0.01 | ) | 0.42 | 0.43 | 0.23 | 0.07 | ||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | (0.62 | ) | 5.75 | 9.89 | 7.99 | 6.90 | ||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(4) | (0.63 | ) | 6.17 | 10.32 | 8.22 | 6.97 | ||||||||||||||||||
Distributions from Net Investment Income | (0.45 | ) | (0.34 | ) | (0.15 | ) | (0.21 | ) | (0.01 | ) | ||||||||||||||
Distributions from Realized Capital Gains | — | — | — | (0.12 | ) | — | ||||||||||||||||||
Total Distributions | (0.45 | ) | (0.34 | ) | (0.15 | ) | (0.33 | ) | (0.01 | ) | ||||||||||||||
Net Asset Value, End of Period | $ | 23.92 | $ | 57.05 | $ | 51.22 | $ | 41.05 | $ | 33.16 | ||||||||||||||
Market Value, End of Period | $ | 23.90 | $ | 57.05 | $ | 51.25 | $ | 41.13 | $ | 33.24 | ||||||||||||||
Total Return | ||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(5) | (2.58 | )% | 12.06 | % | 25.18 | % | 25.01 | % | 26.62 | % | ||||||||||||||
Total Investment Return Based on Market(5) | (2.61 | )% | 11.99 | % | 25.00 | % | 24.96 | % | 26.93 | % | ||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net Assets, End of Period (000’s omitted) | $ | 1,794 | $ | 242,472 | $ | 137,015 | $ | 25,657 | $ | 8,291 | ||||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements(6) | 1.75 | % | 0.99 | % | 0.99 | % | 0.99 | % | 0.99 | % | ||||||||||||||
Expenses, prior to expense waivers and reimbursements(6) | 6.20 | % | 1.11 | % | 1.16 | % | 1.90 | % | 2.34 | % | ||||||||||||||
Net Investment Income (Loss)(6) | (0.02 | )% | 0.76 | % | 0.90 | % | 0.62 | % | 0.31 | % | ||||||||||||||
Portfolio Turnover Rate(7) | 203 | % | 52 | % | 7 | % | 57 | % | 201 | % |
See accompanying Notes to Financial Statements.
157
ADVISORSHARES TRUST
Financial Highlights
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AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF | AdvisorShares YieldPro ETF | |||||||||||||||||||||||||||
Year ended June 30, 2015 | 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 | Year ended June 30, 2015 | 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 | $ | 38.95 | $ | 32.65 | $ | 28.72 | $ | 31.46 | $ | 25.00 | $ | 25.28 | $ | 25.00 | ||||||||||||||
Investment Operations | ||||||||||||||||||||||||||||
Net Investment Income(2) | 0.34 | 0.18 | 0.11 | 0.07 | 0.15 | 0.85 | 0.29 | |||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | (0.20 | ) | 6.29 | 3.99 | (2.58 | ) | 6.40 | (2.07 | ) | 0.20 | ||||||||||||||||||
Distributions of Net Realized Gains by other investment companies | — | — | 0.00 | (3) | — | — | 0.00 | (3) | — | |||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(4) | 0.14 | 6.47 | 4.10 | (2.51 | ) | 6.55 | (1.22 | ) | 0.49 | |||||||||||||||||||
Distributions from Net Investment Income | (0.23 | ) | (0.17 | ) | (0.17 | ) | (0.11 | ) | (0.09 | ) | (0.99 | ) | (0.21 | ) | ||||||||||||||
Distributions from Realized Capital Gains | — | — | — | (0.12 | ) | — | — | — | ||||||||||||||||||||
Total Distributions | (0.23 | ) | (0.17 | ) | (0.17 | ) | (0.23 | ) | (0.09 | ) | (0.99 | ) | (0.21 | ) | ||||||||||||||
Net Asset Value, End of Period | $ | 38.86 | $ | 38.95 | $ | 32.65 | $ | 28.72 | $ | 31.46 | $ | 23.07 | $ | 25.28 | ||||||||||||||
Market Value, End of Period | $ | 38.77 | $ | 38.93 | $ | 32.63 | $ | 28.70 | $ | 31.58 | $ | 23.03 | $ | 25.31 | ||||||||||||||
Total Return | ||||||||||||||||||||||||||||
Total Investment Return Based on Net Asset Value(5) | 0.36 | % | 19.85 | % | 14.30 | % | (7.94 | )% | 26.21 | % | (4.92 | )% | 1.95 | % | ||||||||||||||
Total Investment Return Based on Market(5) | 0.19 | % | 19.85 | % | 14.29 | % | (8.36 | )% | 26.69 | % | (5.20 | )% | 2.07 | % | ||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||||||
Net Assets, End of Period (000’s omitted) | $ | 15,543 | $ | 12,660 | $ | 7,346 | $ | 6,462 | $ | 8,651 | $ | 34,598 | $ | 72,035 | ||||||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||||||||||
Expenses, net of expense waivers and reimbursements(6) | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.05 | % | 1.07 | % | ||||||||||||||
Expenses, prior to expense waivers and reimbursements(6) | 1.63 | % | 1.67 | % | 2.52 | % | 4.17 | % | 3.04 | % | 1.05 | % | 1.07 | % | ||||||||||||||
Net Investment Income(6) | 0.88 | % | 0.50 | % | 0.36 | % | 0.24 | % | 0.52 | % | 3.49 | % | 3.64 | % | ||||||||||||||
Portfolio Turnover Rate(7) | 27 | % | 24 | % | 38 | % | 16 | % | 34 | % | 128 | % | 8 | % |
* | Commencement of operations. |
(1) | Formerly known as, AdvisorShares Cambria Global Tactical ETF. |
(2) | Based on average shares outstanding. |
(3) | Amount represents less than $0.005 or 0.005%. |
(4) | The amount shown for a share distribution throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Fund Shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. |
(5) | 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. |
(6) | Ratios of periods of less than one year have been annualized. |
(7) | 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. |
(8) | The expense ratio includes interest and dividend expenses on short sales of 0.23%, 2.46%, 4.27%, and 1.60% for the periods ended June 30, 2014, June 30, 2013, June 30, 2012, and June 30, 2011, respectively. |
(9) | The expense ratio includes interest and dividend expenses on short sales of 0.15%, 0.20%, and 0.06% for the periods ended June 30, 2015, June 30, 2014, and June 30, 2013, respectively. |
(10) | The expense ratio includes interest and dividend expenses on short sales of 1.15%, 1.22%, 1.51%, 1.38%, and 1.28% for the periods ended June 30, 2015, June 30, 2014, June 30, 2013, June 30, 2012, and June 30, 2011, respectively. |
See accompanying Notes to Financial Statements.
158
ADVISORSHARES TRUST
Notes to Financial Statements
June 30, 2015
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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 23 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 Athena High Dividend ETF | DIVI | July 29, 2014 | ||||||
AdvisorShares EquityPro ETF | EPRO | July 10, 2012 | ||||||
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 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 Morgan Creek Global Tactical ETF* | GTAA | October 26, 2010 | ||||||
AdvisorShares Newfleet Multi-Sector Income ETF | MINC | March 19, 2013 | ||||||
AdvisorShares Pacific Asset Enhanced Floating Rate ETF | FLRT | February 18, 2015 | ||||||
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 Sunrise Global Multi-Strategy ETF | MULT | July 8, 2014 | ||||||
AdvisorShares TrimTabs Float Shrink ETF | TTFS | October 4, 2011 | ||||||
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF | AADR | July 21, 2010 | ||||||
AdvisorShares YieldPro ETF | YPRO | March 4, 2014 |
* | Effective July 28, 2014, AdvisorShares Cambria Global Tactical ETF changed its name to AdvisorShares Morgan Creek Global Tactical 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 Athena High Dividend ETF (“Athena High Dividend ETF”) seeks long-term capital appreciation. The Portfolio Manager uses a behavioral finance approach to identifying securities for DIVI’s portfolio. Stocks are screened and selected using the Portfolio Manager’s patented research.
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
159
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2015
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1. Organization - (continued)
to lower portfolio volatility and risk. The Portfolio Manager seeks to achieve this objective by investing primarily in other ETFs, 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/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 Madrona Domestic ETF (“Madrona Domestic ETF”) seeks to provide long-term capital appreciation above the capital appreciation of its benchmark, the S&P 500 Index by selecting a portfolio of up to 500 of the largest U.S. traded equity securities using a weighted allocation system based on consensus analyst estimates of the present value of future expected earnings relative to the share price of each security.
AdvisorShares Madrona Global Bond ETF (“Madrona Global Bond ETF”) seeks investment results that exceed the price and yield performance of its benchmark, the Barclays Capital Aggregate Bond Index. 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. Its 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.
160
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2015
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1. Organization - (continued)
AdvisorShares Morgan Creek Global Tactical ETF (“Morgan Creek Global Tactical ETF”) seeks to preserve and grow capital from investments in the U.S. and foreign equity, fixed income, commodity and currency markets, independent of market direction. The Portfolio Manager seeks to achieve GTAA’s objective by utilizing a combination a qualitative and quantitative approaches with established risk management controls to actively manage the portfolio in an attempt to control the downside losses and protect capital.
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 Pacific Asset Enhanced Floating Rate ETF (“Pacific Asset Enhanced Floating Rate ETF”) seeks to provide a high level of current income. The fund seeks to achieve its investment objective by selecting a focused portfolio comprised primarily of income producing floating rate loans and floating rate debt securities. Under normal circumstances, it will invest at least 80% of its net assets (plus any borrowings for investment purposes) in floating rate loans and other floating rate debt securities and in derivatives or other instruments that have economic characteristics similar to such securities (such as swap agreements, including, but not limited to, total return swaps, credit default swaps, and interest rate swaps).
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.
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.
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Notes to Financial Statements (Continued)
June 30, 2015
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1. Organization - (continued)
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 Sunrise Global Multi-Strategy ETF (“Sunrise Global Multi-Strategy ETF”) seeks to provide long-term total returns by investing long and short in a variety of asset classes and investment strategies. The Portfolio Manager seeks to achieve MULT’s objective by tactically investing, both long and short, in global equity, bond, currency and commodity markets as opportunities arise within those markets.
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 Growth ADR ETF (“WCM/BNY Mellon Focused Growth 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.
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.
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June 30, 2015
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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/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, 2015 | % of ETF’s Total Net Assets at June 30, 2015 | |||||||||
Gartman Gold/Euro ETF | February 11, 2014 | $ | 2,502,550 | 14.9 | % | |||||||
Gartman Gold/Yen ETF | February 11, 2014 | 4,052,733 | 17.6 |
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.
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.
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Notes to Financial Statements (Continued)
June 30, 2015
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3. Summary of Significant Accounting Policies - (continued)
Swap Agreements
Certain funds 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.
Repurchase Agreements
The Funds may enter into repurchase agreements provided that the value of the underlying collateral, including accrued interest, will equal or exceed the value of the repurchase agreement during the term of the agreement. The underlying collateral for all repurchase agreements is held in safekeeping by the Fund’s custodian or at the Federal Reserve Bank. If the seller defaults and the value of the collateral declines, or if bankruptcy proceedings commence with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.
At June 30, 2015 the market values of repurchase agreements outstanding are included as cash collateral for securities on loan on the Statements of Assets and Liabilities.
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.
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June 30, 2015
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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 Statements 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 QAM Equity Hedge ETF and Ranger Equity Bear ETF for the year ended June 30, 2015 are $11,570 and $1,112,213, respectively, which are included as Interest on Securities Sold Short, Not Yet Purchased in the Statements 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 extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction
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Notes to Financial Statements (Continued)
June 30, 2015
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3. Summary of Significant Accounting Policies - (continued)
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
The Funds participate in a securities lending program offered by The Bank of New York Mellon (“BNYM”) (the “Program”), providing for the lending of securities to qualified brokers. Securities lending income includes earnings of such temporary cash investments, plus or minus any rebate to a borrower. These earnings (after any rebate) are then divided between BNYM, as a fee for its services under the Program, and the Funds, according to agreed-upon rates. Collateral on all securities loaned is accepted in cash and is maintained at a minimum level of 102% (105% in the case of certain foreign securities) of the market value, plus interest, if applicable, of investments on loan. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Funds if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Under the terms of the Program, the Funds are indemnified for such losses by BNYM. Cash collateral is held in a separate account managed by BNYM, who is authorized to exclusively enter into overnight repurchase agreements. BNYM bears the risk of any deficiency in the amount of the cash collateral available for return to the borrower due to any loss on the collateral invested.
The repurchase agreement income related to the Program earned by the Funds is disclosed on the Statements of Operations.
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Notes to Financial Statements (Continued)
June 30, 2015
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3. Summary of Significant Accounting Policies - (continued)
The value of loaned securities and related collateral outstanding at June 30, 2015 are shown in the Schedules of Investments and Statements of Assets and Liabilities.
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Liabilities: | Description | Gross Amounts of Recognized Assets (Liabilities) | Gross Amounts Offset in the Statements of Financial Position | Net Amounts Presented in the Statements of Financial Position | Gross Amounts not offset in the Statements of Assets and Liabilities | Net Amount | ||||||||||||||||||||||
Fund | Financial Instruments | Collateral Pledged/ Received | ||||||||||||||||||||||||||
Accuvest Global Long Short ETF | Swaps | $ | 134,658 | $ | — | $ | 134,658 | $ | 134,658 | $ | 5,615,680 | $ | — | |||||||||||||||
Athena High Dividend ETF | Repurchase Agreements | 2,000,530 | — | 2,000,530 | 2,000,530 | * | 2,040,543 | — | ||||||||||||||||||||
EquityPro ETF | Repurchase Agreements | 2,357,879 | — | 2,357,879 | 2,357,879 | * | 2,405,039 | — | ||||||||||||||||||||
Global Echo ETF | Repurchase Agreements | 179,836 | — | 179,836 | 179,836 | * | 290,632 | (1) | — | |||||||||||||||||||
Madrona Domestic ETF | Repurchase Agreements | 769,212 | — | 769,212 | 769,212 | * | 944,309 | (1) | — | |||||||||||||||||||
Madrona Global Bond ETF | Repurchase Agreements | 8,327,697 | — | 8,327,697 | 8,327,697 | * | 8,494,258 | — | ||||||||||||||||||||
Madrona International ETF | Repurchase Agreements | 2,436,360 | — | 2,436,360 | 2,436,360 | * | 2,485,088 | — | ||||||||||||||||||||
Meidell Tactical Advantage ETF | Repurchase Agreements | 4,117,585 | — | 4,117,585 | 4,117,585 | * | 4,199,940 | — | ||||||||||||||||||||
Morgan Creek Global Tactical ETF | Repurchase Agreements | 1,842,084 | — | 1,842,084 | 1,842,084 | * | 1,878,928 | — | ||||||||||||||||||||
Newfleet Multi-Sector Income ETF | Repurchase Agreements | 753,918 | — | 753,918 | 753,918 | * | 1,427,082 | (1) | — | |||||||||||||||||||
Pacific Asset Enhanced Floating Rate ETF | Swaps | (2,712 | ) | — | (2,712 | ) | (2,712) | — | — | |||||||||||||||||||
Peritus High Yield ETF | Repurchase Agreements | 51,883,351 | — | 51,883,351 | 51,883,351 | * | 59,886,589 | (1) | — | |||||||||||||||||||
Pring Turner Business Cycle ETF | Repurchase Agreements | 350,292 | — | 350,292 | 350,292 | * | 357,298 | — | ||||||||||||||||||||
Sage Core Reserves ETF | Repurchase Agreements | 265,875 | — | 265,875 | 265,875 | * | 271,192 | — | ||||||||||||||||||||
TrimTabs Float Shrink ETF | Repurchase Agreements | 759,509 | — | 759,509 | 759,509 | * | 3,086,234 | (1) | — | |||||||||||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | Repurchase Agreements | 2,440,719 | — | 2,440,719 | 2,440,719 | * | 2,489,536 | — |
* | Collateral for securities on loan included in the Schedules 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.
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June 30, 2015
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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”) pursuant to which the Advisor acts as the Fund’s investment adviser. Pursuant to the 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 which is calculated daily and paid monthly based on average daily net assets. 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 | % | ||
Athena High Dividend ETF | 0.80 | % | ||
EquityPro ETF | 0.80 | % | ||
Gartman Gold/Euro ETF | 0.55 | % | ||
Gartman Gold/Yen ETF | 0.55 | % | ||
Global Echo ETF | 1.10 | % | ||
Madrona Domestic ETF | 0.80 | % | ||
Madrona Global Bond ETF | 0.50 | % | ||
Madrona International ETF | 0.80 | % | ||
Meidell Tactical Advantage ETF | 1.20 | % | ||
Morgan Creek 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 | % | ||
Newfleet Multi-Sector Income ETF | 0.65 | % | ||
Pacific Asset Enhanced Floating Rate ETF | 0.95 | % | ||
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 | % | ||
Sunrise Global Multi-Strategy ETF | 1.50 | % | ||
TrimTabs Float Shrink ETF | 0.99 | % | ||
WCM/BNY Mellon Focused Growth ADR ETF | 0.75 | % | ||
YieldPro ETF | 0.80 | % |
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.
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Notes to Financial Statements (Continued)
June 30, 2015
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4. Investment Advisory Agreement and Other Agreements - (continued)
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 between each 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 amount for each Fund’s average daily net assets (with the exception of Global Echo ETF). 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, 2015 were as follows:
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Fund: | Rate: | |||
Accuvest Global Long Short ETF | 1.50 | % | ||
Athena High Dividend ETF | 0.99 | % | ||
EquityPro ETF | 1.25 | % | ||
Gartman Gold/Euro ETF | 0.65 | % | ||
Gartman Gold/Yen ETF | 0.65 | % | ||
Global Echo ETF | — | |||
Madrona Domestic ETF | 1.25 | % | ||
Madrona Global Bond ETF | 0.95 | % | ||
Madrona International ETF | 1.25 | % | ||
Meidell Tactical Advantage ETF | 1.35 | % | ||
Morgan Creek Global Tactical ETF | 1.25 | % | ||
Newfleet Multi-Sector Income ETF | 0.75 | % | ||
Pacific Asset Enhanced Floating Rate ETF | 1.10 | % | ||
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 | % | ||
Sunrise Global Multi-Strategy ETF | 1.75 | % | ||
TrimTabs Float Shrink ETF | 0.99 | % | ||
WCM/BNY Mellon Focused Growth ADR ETF | 1.25 | % | ||
YieldPro ETF | 1.25 | % |
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Notes to Financial Statements (Continued)
June 30, 2015
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4. Investment Advisory Agreement and Other Agreements - (continued)
For the year ended June 30, 2015, 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 | $ | 83,973 | $ | 81,563 | 6/30/2016 | |||||||
63,291 | 63,291 | 6/30/2017 | ||||||||||
115,138 | 115,138 | 6/30/2018 | ||||||||||
Total Accuvest Global Long Short ETF | 262,402 | 259,992 | ||||||||||
Athena High Dividend ETF | 83,036 | 79,776 | 6/30/2018 | |||||||||
Total Athena High Dividend ETF | 83,036 | 79,776 | ||||||||||
EquityPro ETF | 83,603 | 52,349 | 6/30/2016 | |||||||||
67,622 | 67,622 | 6/30/2017 | ||||||||||
802 | 802 | 6/30/2018 | ||||||||||
Total EquityPro ETF | 152,027 | 120,773 | ||||||||||
Gartman Gold Euro ETF | 49,169 | 49,169 | 6/30/2017 | |||||||||
118,897 | 118,897 | 6/30/2018 | ||||||||||
Total Gartman Gold Euro ETF | 168,066 | 168,066 | ||||||||||
Gartman Gold Yen ETF | 48,900 | 48,900 | 6/30/2017 | |||||||||
122,306 | 122,306 | 6/30/2018 | ||||||||||
Total Gartman Gold Yen ETF | 171,206 | 171,206 | ||||||||||
Madrona Domestic ETF | 59,617 | 59,418 | 6/30/2016 | |||||||||
35,931 | 35,931 | 6/30/2017 | ||||||||||
35,654 | 35,654 | 6/30/2018 | ||||||||||
Total Madrona Domestic ETF | 131,202 | 131,003 | ||||||||||
Madrona Global Bond ETF | 28,515 | 16,462 | 6/30/2016 | |||||||||
27,899 | 27,899 | 6/30/2017 | ||||||||||
12,090 | 12,090 | 6/30/2018 | ||||||||||
Total Madrona Global Bond ETF | 68,504 | 56,451 | ||||||||||
Madrona International ETF | 60,597 | 60,597 | 6/30/2016 | |||||||||
54,221 | 54,221 | 6/30/2017 | ||||||||||
79,853 | 79,853 | 6/30/2018 | ||||||||||
Total Madrona International ETF | 194,671 | 194,671 | ||||||||||
Meidell Tactical Advantage ETF | 119,857 | 117,592 | 6/30/2016 | |||||||||
106,095 | 106,095 | 6/30/2017 | ||||||||||
103,519 | 103,519 | 6/30/2018 | ||||||||||
Total Meidell Tactical Advantage ETF | 329,471 | 327,206 | ||||||||||
Morgan Creek Global Tactical ETF | 15,570 | — | 6/30/2016 | |||||||||
4,358 | — | 6/30/2017 | ||||||||||
175,707 | 165,254 | 6/30/2018 | ||||||||||
Total Morgan Creek Global Tactical ETF | 195,635 | 165,254 |
170
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2015
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4. Investment Advisory Agreement and Other Agreements - (continued)
![]() | ![]() | ![]() | ![]() | |||||||||
Fund: | Expenses Reimbursed: | Recoupment Balance: | Recoupment Expiration: | |||||||||
Newfleet Multi-Sector Income ETF | $ | 76,615 | $ | 76,615 | 6/30/2016 | |||||||
88,416 | 88,416 | 6/30/2017 | ||||||||||
139,832 | 139,832 | 6/30/2018 | ||||||||||
Total Newfleet Multi-Sector Income ETF | 304,863 | 304,863 | ||||||||||
Pacific Asset Enhanced Floating Rate ETF | 30,047 | 30,047 | 6/30/2018 | |||||||||
Total Pacific Asset Enhanced Floating Rate ETF | 30,047 | 30,047 | ||||||||||
Pring Turner Business Cycle ETF | 68,085 | 68,085 | 6/30/2016 | |||||||||
57,187 | 57,187 | 6/30/2017 | ||||||||||
83,991 | 83,991 | 6/30/2018 | ||||||||||
Total Pring Turner Business Cycle ETF | 209,263 | 209,263 | ||||||||||
QAM Equity Hedge ETF | 98,205 | 98,205 | 6/30/2016 | |||||||||
65,019 | 65,019 | 6/30/2017 | ||||||||||
88,514 | 88,514 | 6/30/2018 | ||||||||||
Total QAM Equity Hedge ETF | 251,738 | 251,738 | ||||||||||
Sage Core Reserves ETF | 58,758 | 55,754 | 6/30/2017 | |||||||||
141,235 | 141,235 | 6/30/2018 | ||||||||||
Total Sage Core Reserves ETF | 199,993 | 196,989 | ||||||||||
STAR Global Buy-Write ETF | 58,584 | 32,717 | 6/30/2016 | |||||||||
3,240 | 3,240 | 6/30/2017 | ||||||||||
13,786 | 13,786 | 6/30/2018 | ||||||||||
Total STAR Global Buy-Write ETF | 75,610 | 49,743 | ||||||||||
Sunrise Global Multi-Strategy ETF | 97,168 | 92,537 | 6/30/2018 | |||||||||
Total Sunrise Global Multi-Strategy ETF | 97,168 | 92,537 | ||||||||||
TrimTabs Float Shrink ETF | 113,494 | 113,494 | 6/30/2016 | |||||||||
159,385 | 159,385 | 6/30/2017 | ||||||||||
211,220 | 211,220 | 6/30/2018 | ||||||||||
Total TrimTabs Float Shrink ETF | 484,099 | 484,099 | ||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 93,571 | 89,500 | 6/30/2016 | |||||||||
40,767 | 40,767 | 6/30/2017 | ||||||||||
55,807 | 55,807 | 6/30/2018 | ||||||||||
Total WCM/BNY Mellon Focused Growth ADR ETF | 190,145 | 186,074 |
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.
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Notes to Financial Statements (Continued)
June 30, 2015
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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
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Notes to Financial Statements (Continued)
June 30, 2015
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6. Summary of Fair Value Disclosure - (continued)
quotation; (vi) a security affected by currency controls or restrictions; and (vii) a security affected by a significant event (e.g., an event that occurs after the close of the markets on which the security is traded but before the time as of which a Fund’s net asset value is computed and that may materially affect the value of the Fund’s investment). Examples of events that may be “significant events” are government actions, natural disasters, armed conflicts and acts of terrorism. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of June 30, 2015 in valuing the Funds’ assets carried at fair value:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Assets | Accuvest Global Long Short ETF | Athena High Dividend ETF | EquityPro ETF | Gartman Gold/Euro ETF | Gartman Gold/Yen ETF | Global Echo ETF | ||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Exchange Traded Funds | $ | 10,852,304 | $ | — | $ | 18,714,718 | $ | — | $ | — | $ | — | ||||||||||||
Common Stocks | — | 15,154,349 | — | — | — | 5,263,154 | ||||||||||||||||||
Money Market Funds | 2,591,519 | 80,184 | 464,567 | 11,026,789 | 15,460,955 | 324,692 | ||||||||||||||||||
Futures† | — | — | — | 267,757 | — | — | ||||||||||||||||||
Level 2 | ||||||||||||||||||||||||
Municipal Bonds | — | — | — | — | — | 300,000 | ||||||||||||||||||
Asset Backed Securities | — | — | — | — | — | 1,170,379 | ||||||||||||||||||
U.S. Government Agency Securities | — | — | — | — | — | 797,270 | ||||||||||||||||||
Repurchase Agreements for Securities Loaned | — | 2,000,530 | 2,357,879 | — | — | 179,836 | ||||||||||||||||||
Swaps Contracts† | 147,769 | — | — | — | — | — | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Futures† | — | — | — | (255,134 | ) | (408,175 | ) | — | ||||||||||||||||
Level 2 | ||||||||||||||||||||||||
Swaps Contracts† | (13,111 | ) | — | — | — | — | — | |||||||||||||||||
Total | $ | 13,578,481 | $ | 17,235,063 | $ | 21,537,164 | $ | 11,039,412 | $ | 15,052,780 | $ | 8,035,331 |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Assets | Madrona Domestic ETF | Madrona Global Bond ETF | Madrona International ETF | Meidell Tactical Advantage ETF | Morgan Creek Global Tactical ETF | Newfleet Multi-Sector Income ETF | ||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Exchange Traded Funds | $ | — | $ | 27,812,843 | $ | — | $ | 16,358,834 | $ | 8,997,190 | $ | — | ||||||||||||
Closed End Fund | — | — | — | — | 658,862 | — | ||||||||||||||||||
Common Stocks | 31,260,189 | — | 18,818,244 | — | — | — | ||||||||||||||||||
Money Market Funds | 345,390 | 326,686 | 516,762 | 614,679 | 2,672,595 | 10,181,323 | ||||||||||||||||||
Level 2 | ||||||||||||||||||||||||
Corporate Bonds | — | — | — | — | — | 40,700,400 | ||||||||||||||||||
Foreign Bonds | — | — | — | — | — | 13,036,071 | ||||||||||||||||||
US Treasury Notes | — | — | — | — | — | 4,214,257 | ||||||||||||||||||
U.S. Government Agency Securities | — | — | — | — | — | 1,348,585 | ||||||||||||||||||
Asset Backed Securities | — | — | — | — | — | 56,980,504 | ||||||||||||||||||
Mortgage Backed Securities | — | — | — | — | — | 63,214,617 | ||||||||||||||||||
Term Loans | — | — | — | — | — | 26,381,707 | ||||||||||||||||||
Repurchase Agreements for Securities Loaned | 769,212 | 8,327,697 | 2,436,360 | 4,117,585 | 1,842,084 | 753,918 | ||||||||||||||||||
Total | $ | 32,374,791 | $ | 36,467,226 | $ | 21,771,366 | $ | 21,091,098 | $ | 14,170,731 | $ | 216,811,382 |
173
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2015
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6. Summary of Fair Value Disclosure - (continued)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Assets | Pacific Asset Enhanced Floating Rate ETF | Peritus High Yield ETF | Pring Turner Business Cycle ETF | QAM Equity Hedge ETF | Ranger Equity Bear ETF | Sage Core Reserves ETF | ||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Exchange Traded Funds | $ | — | $ | — | $ | 1,605,194 | $ | 6,579,930 | $ | 29,811,000 | $ | — | ||||||||||||
Common Stocks | — | 116,051 | 2,347,069 | — | — | — | ||||||||||||||||||
Money Market Funds | 1,216,054 | — | 466,381 | 570,159 | 12,574,072 | 3,653,086 | ||||||||||||||||||
Futures† | — | — | — | — | — | 2,646 | ||||||||||||||||||
Level 2 | ||||||||||||||||||||||||
Corporate Bonds | 3,662,423 | 253,563,342 | — | — | — | 15,638,484 | ||||||||||||||||||
Foreign Bonds | — | 48,170,150 | — | — | — | 3,113,561 | ||||||||||||||||||
Municipal Bonds | — | — | — | — | — | 765,742 | ||||||||||||||||||
US Treasury Notes | — | — | — | — | — | 1,860,727 | ||||||||||||||||||
US Treasury Bills | — | — | — | — | — | 100,004 | ||||||||||||||||||
Asset Backed Securities | — | — | — | — | — | 5,167,796 | ||||||||||||||||||
Commercial Mortgage Backed Securities | — | — | — | — | — | 4,709,931 | ||||||||||||||||||
Term Loans | 23,773,772 | 70,692,776 | — | — | — | — | ||||||||||||||||||
Repurchase Agreements for Securities Loaned | — | 51,883,351 | 350,292 | — | — | 265,875 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Exchange Traded Funds | — | — | — | (563,007 | ) | — | — | |||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Level 1 | — | |||||||||||||||||||||||
Exchange Traded Funds | — | — | — | — | — | — | ||||||||||||||||||
Common Stocks | — | — | — | — | (125,683,452 | ) | — | |||||||||||||||||
Futures† | — | — | — | — | — | (2,426 | ) | |||||||||||||||||
Level 2 | ||||||||||||||||||||||||
Swaps Contracts† | (2,712 | ) | — | — | — | — | — | |||||||||||||||||
Total | $ | 28,649,537 | $ | 424,425,670 | $ | 4,768,936 | $ | 6,587,082 | $ | (83,298,380 | ) | $ | 35,275,426 |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
Assets | STAR Global Buy-Write ETF | Sunrise Global Multi-Strategy ETF | TrimTabs Float Shrink ETF | WCM/BNY Mellon Focused Growth ADR ETF | YieldPro ETF | |||||||||||||||
Level 1 | ||||||||||||||||||||
Exchange Traded Funds | $ | 23,939,303 | $ | 1,423,528 | $ | — | $ | — | $ | 34,165,928 | ||||||||||
Common Stocks | 405,235 | — | 242,217,774 | 14,864,528 | — | |||||||||||||||
Money Market Funds | 1,046,062 | 115,261 | 268,307 | 651,100 | 492,809 | |||||||||||||||
Level 2 | ||||||||||||||||||||
U.S. Treasury Notes | 1,026,993 | — | — | — | — | |||||||||||||||
Repurchase Agreements for Securities Loaned | — | — | 759,509 | 2,440,719 | — | |||||||||||||||
Liabilities | ||||||||||||||||||||
Level 1 | ||||||||||||||||||||
Written Options† | (13,449 | ) | — | — | — | — | ||||||||||||||
Total | $ | 26,404,144 | $ | 1,538,789 | $ | 243,245,590 | $ | 17,956,347 | $ | 34,658,737 |
† | Derivative instruments, including swap contracts and futures, are valued at the net unrealized gain (loss) on the instrument. |
174
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2015
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6. Summary of Fair Value Disclosure - (continued)
There were no transfers between Level 1 and Level 2 fair value measurements that occurred during the year ended June 30, 2015.
The Funds did not hold any Level 3 securities as of June 30, 2015.
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, 2015, the fair values of derivative instruments were as follows:
Statements of Assets and Liabilities:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
Fund: | Asset Derivatives: | Equity Risk | Foreign Exchange Risk | Commodity Risk | Interest Rate Risk | |||||||||||||||
Accuvest Global Long Short ETF | Unrealized Appreciation on Swaps Contracts | $ | 147,769 | $ | — | $ | — | $ | — | |||||||||||
Gartman Gold/Euro ETF | Unrealized Appreciation on Futures Contracts | — | 267,757 | — | — | |||||||||||||||
Sage Core Reserves ETF | Unrealized Appreciation on Futures Contracts | — | — | — | 2,646 | |||||||||||||||
$ | 147,769 | $ | 267,757 | $ | — | $ | 2,646 |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
Fund: | Liability Derivatives: | Equity Risk | Foreign Exchange Risk | Commodity Risk | Interest Rate Risk | |||||||||||||||
Accuvest Global Long Short ETF | Unrealized Depreciation on Swaps Contracts | $ | (13,111 | ) | $ | — | $ | — | $ | — | ||||||||||
Gartman Gold/Euro ETF | Unrealized Depreciation on Futures Contracts | — | — | (255,134 | ) | — | ||||||||||||||
Gartman Gold/Yen ETF | Unrealized Depreciation on Futures Contracts | — | (67,239 | ) | (340,936 | ) | — | |||||||||||||
Pacific Asset Enhanced Floating Rate ETF | Unrealized Depreciation on Swaps Contracts | (2,712 | ) | — | — | — | ||||||||||||||
Sage Core Reserves ETF | Unrealized Depreciation on Futures Contracts | — | — | — | (2,426 | ) | ||||||||||||||
STAR Global Buy-Write ETF | Options Written, at Value | (6,926 | ) | — | — | (6,523 | ) | |||||||||||||
$ | (22,749 | ) | $ | (67,239 | ) | $ | (596,070 | ) | $ | (8,949 | ) |
175
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2015
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7. Valuation of Derivative Instruments - (continued)
Transactions in derivative instruments during the year ended June 30, 2015, were as follows:
Statements of Operations:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
Fund: | Realized Gain (Loss): | Equity Risk | Foreign Exchange Risk | Commodity Risk | Interest Rate Risk | |||||||||||||||
Accuvest Global Long Short ETF | Swaps | $ | 703,697 | $ | — | $ | — | $ | — | |||||||||||
Gartman Gold/Euro ETF | Futures | — | 378,635 | (813,482 | ) | — | ||||||||||||||
Gartman Gold/Yen ETF | Futures | — | 940,073 | (601,078 | ) | — | ||||||||||||||
Pacific Asset Enhanced Floating Rate ETF | Swaps | (10,073 | ) | — | — | — | ||||||||||||||
QAM Equity Hedge ETF | Investments – Options Purchased | (10,391 | ) | — | — | — | ||||||||||||||
QAM Equity Hedge ETF | Options Written | 358 | — | — | — | |||||||||||||||
Sage Core Reserves ETF | Futures | — | — | — | (50,432 | ) | ||||||||||||||
STAR Global Buy-Write ETF | Investments – Options Purchased | 1,127 | — | — | — | |||||||||||||||
STAR Global Buy-Write ETF | Options Written | 21,458 | — | — | — | |||||||||||||||
Sunrise Global Multi Strategy | Futures | (3,109 | ) | (105,470 | ) | (337 | ) | 8,757 | ||||||||||||
YieldPro ETF | Investments – Options Purchased | (2,416,236 | ) | — | — | (953,770 | ) | |||||||||||||
$ | (1,713,169 | ) | $ | 1,213,238 | $ | (1,414,897 | ) | $ | (995,445 | ) |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||
Fund: | Change in Unrealized Gain (Loss): | Equity Risk | Foreign Exchange Risk | Commodity Risk | Interest Rate Risk | |||||||||||||||
Accuvest Global Long Short ETF | Swaps | $ | 103,629 | $ | — | $ | — | $ | — | |||||||||||
Gartman Gold/Euro ETF | Futures | — | 271,615 | (317,224 | ) | — | ||||||||||||||
Gartman Gold/Yen ETF | Futures | — | (21,807 | ) | (527,206 | ) | — | |||||||||||||
Pacific Asset Enhanced Floating Rate ETF | Swaps | (2,712 | ) | — | — | — | ||||||||||||||
Sage Core Reserves ETF | Futures | — | — | — | (429 | ) | ||||||||||||||
STAR Global Buy-Write ETF | Investments – Options Purchased | — | — | — | 1,338 | |||||||||||||||
STAR Global Buy-Write ETF | Options Written | 51,302 | — | — | (5,079 | ) | ||||||||||||||
YieldPro ETF | Investments – Options Purchased | 186,125 | — | — | 132,059 | |||||||||||||||
$ | 338,344 | $ | 249,808 | $ | (844,430 | ) | $ | 127,889 |
For the year ended June 30, 2015, the volume of the derivatives opened by the Funds were as follows:
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||||||||||||||||||||||||
Accuvest Global Long Short ETF | Gartman Global/Euro ETF | Gartman Global/Yen ETF | Pacific Asset Enhanced Floating Rate ETF | QAM Equity Hedge ETF | Sage Core Reserves ETF | STAR Global Buy-Write ETF | Sunrise Global Multi- Strategy | YieldPro ETF | ||||||||||||||||||||||||||||
Long Swaps Contracts | — | — | — | 3,500,000 | — | — | — | — | — | |||||||||||||||||||||||||||
Short Swaps Contracts | 5,623,633 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Purchased Options Contracts | — | — | — | — | 160 | — | 49 | — | 115,970 | |||||||||||||||||||||||||||
Written Options Contracts | — | — | — | — | 60 | — | 9,050 | — | — | |||||||||||||||||||||||||||
Short Futures Contracts | — | 315 | 474 | — | — | 45 | — | 197 | — | |||||||||||||||||||||||||||
Long Futures Contracts | — | 404 | 419 | — | — | — | — | 540 | — |
176
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Notes to Financial Statements (Continued)
June 30, 2015
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8. Federal Income Tax
The Funds intend to qualify as a “regulated investment company” under Sub-chapter M of the Internal Revenue Code of 1986, as amended. If so qualified, the Funds will not be subject to Federal income tax to the extent it distributes substantially all of its net investment income and net capital gains to its shareholders. Accounting for Uncertainty in Income Taxes provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements, and requires the evaluation of tax positions taken or expected to be taken in the course of preparing a Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-than-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Interest and penalty related to income taxes would be recorded as income tax expense. Management of the Funds is required to analyze all open tax years (2013 – 2015), as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of June 30, 2015, 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, 2015, 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 | $ | 13,861,988 | $ | 103,015 | $ | (521,180 | ) | $ | (418,165 | ) | $ | 134,658 | ||||||||
Athena High Dividend ETF | 19,135,951 | 417,260 | (2,318,148 | ) | (1,900,888 | ) | — | |||||||||||||
EquityPro ETF | 22,157,719 | 12,827 | (633,382 | ) | (620,555 | ) | — | |||||||||||||
Gartman Gold/Euro ETF | 11,026,789 | — | — | — | — | |||||||||||||||
Gartman Gold/Yen ETF | 15,460,955 | — | — | — | — | |||||||||||||||
Global Echo ETF | 7,569,676 | 677,422 | (211,767 | ) | 465,655 | — | ||||||||||||||
Madrona Domestic ETF | 29,239,494 | 4,191,287 | (1,055,990 | ) | 3,135,297 | — | ||||||||||||||
Madrona Global Bond ETF | 36,778,939 | 471,747 | (783,460 | ) | (311,713 | ) | — | |||||||||||||
Madrona International ETF | 22,148,190 | 1,064,704 | (1,441,528 | ) | (376,824 | ) | — | |||||||||||||
Meidell Tactical Advantage ETF | 20,797,012 | 419,573 | (125,487 | ) | 294,086 | — | ||||||||||||||
Morgan Creek Global Tactical ETF | 14,192,305 | 596,318 | (617,892 | ) | (21,574 | ) | — | |||||||||||||
Newfleet Multi-Sector Income ETF | 218,628,294 | 846,468 | (2,663,380 | ) | (1,816,912 | ) | — | |||||||||||||
Pacific Asset Enhanced Floating Rate ETF | 28,829,414 | 39,506 | (216,671 | ) | (177,165 | ) | (2,712 | ) | ||||||||||||
Peritus High Yield ETF | 449,634,724 | 3,113,965 | (28,323,019 | ) | (25,209,054 | ) | — | |||||||||||||
Pring Turner Business Cycle ETF | 4,694,468 | 249,102 | (174,634 | ) | 74,468 | — | ||||||||||||||
QAM Equity Hedge ETF | 6,920,397 | 333,187 | (73,060 | ) | 229,692 | 30,435 | ||||||||||||||
Ranger Equity Bear ETF | 42,571,222 | 6,726,609 | (4,788,772 | ) | (186,150 | ) | 2,123,987 | |||||||||||||
Sage Core Reserves ETF | 35,367,934 | 12,713 | (105,441 | ) | (92,728 | ) | — | |||||||||||||
STAR Global Buy-Write ETF | 24,883,597 | 1,855,530 | (321,534 | ) | 1,533,996 | 55,982 | ||||||||||||||
Sunrise Global Multi-Strategy ETF | 1,479,358 | 65,484 | (6,053 | ) | 59,431 | — | ||||||||||||||
TrimTabs Float Shrink ETF | 244,739,467 | 6,089,353 | (7,583,230 | ) | (1,493,877 | ) | — | |||||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 16,025,589 | 2,466,540 | (535,782 | ) | 1,930,758 | — | ||||||||||||||
YieldPro ETF | 34,853,709 | 1,802 | (196,774 | ) | (194,972 | ) | — |
* | Cost of investments on a tax basis, includes the adjustments for financial reporting purposes, as of the most recently completed Federal income tax reporting period end. |
177
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2015
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8. Federal Income Tax - (continued)
At June 30, 2015, the components of distributable earnings/loss on a tax basis were as follows:
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Fund | Undistributed Income | Accumulated Capital Gains/ (Losses) | Timing Differences | Net Unrealized Appreciation (Depreciation) | Total Earnings (Losses) | |||||||||||||||
Accuvest Global Long Short ETF | $ | — | $ | (12,583,302 | ) | $ | (994,173 | ) | $ | (283,507 | ) | $ | (13,860,982 | ) | ||||||
Athena High Dividend ETF | 394 | (299,791 | ) | (1,025,539 | ) | (1,900,888 | ) | (3,225,824 | ) | |||||||||||
EquityPro ETF | 1,352,991 | 121,361 | — | (620,555 | ) | 853,797 | ||||||||||||||
Gartman Gold/Euro ETF | 469,946 | — | (255,134 | ) | — | 214,812 | ||||||||||||||
Gartman Gold/Yen ETF | 170,869 | 341,367 | (340,936 | ) | — | 171,300 | ||||||||||||||
Global Echo ETF | 57,227 | — | — | 465,655 | 522,882 | |||||||||||||||
Madrona Domestic ETF | 25,582 | (990,628 | ) | (689,925 | ) | 3,135,297 | 1,480,326 | |||||||||||||
Madrona Global Bond ETF | 44 | (359,644 | ) | (141,828 | ) | (311,713 | ) | (813,141 | ) | |||||||||||
Madrona International ETF | 173,789 | (2,120,908 | ) | (1,071,957 | ) | (376,824 | ) | (3,395,900 | ) | |||||||||||
Meidell Tactical Advantage ETF | 64,848 | (658,804 | ) | — | 294,086 | (299,870 | ) | |||||||||||||
Morgan Creek Global Tactical ETF | 132,899 | (19,011,958 | ) | (233,289 | ) | (21,574 | ) | (19,133,922 | ) | |||||||||||
Newfleet Multi-Sector Income ETF | 46,112 | (546,261 | ) | (801,367 | ) | (1,816,912 | ) | (3,118,428 | ) | |||||||||||
Pacific Asset Enhanced Floating Rate ETF | 18,971 | — | (15,830 | ) | (179,877 | ) | (176,736 | ) | ||||||||||||
Peritus High Yield ETF | 1,073,647 | (23,048,636 | ) | (97,890,947 | ) | (25,209,054 | ) | (145,074,990 | ) | |||||||||||
Pring Turner Business Cycle ETF | 22,133 | (110,781 | ) | (323,092 | ) | 74,468 | (337,272 | ) | ||||||||||||
QAM Equity Hedge ETF | 51,095 | 14,623 | (29,206 | ) | 260,127 | 296,639 | ||||||||||||||
Ranger Equity Bear ETF | — | (156,506,507 | ) | (14,428,482 | ) | 1,937,837 | (168,997,152 | ) | ||||||||||||
Sage Core Reserves ETF | 3,072 | (25,960 | ) | (113,688 | ) | (92,728 | ) | (229,304 | ) | |||||||||||
STAR Global Buy-Write ETF | — | (173,044 | ) | (85,370 | ) | 1,589,978 | 1,331,564 | |||||||||||||
Sunrise Global Multi-Strategy ETF | — | (98,290 | ) | (97,178 | ) | 59,431 | (136,037 | ) | ||||||||||||
TrimTabs Float Shrink ETF | 887,332 | (7,755,380 | ) | (3,925,462 | ) | (1,493,877 | ) | (12,287,387 | ) | |||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 36,011 | (391,805 | ) | — | 1,930,758 | 1,574,964 | ||||||||||||||
YieldPro ETF | 3,170 | (1,767,067 | ) | (2,599,879 | ) | (194,972 | ) | (4,558,748 | ) |
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.
178
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2015
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8. Federal Income Tax - (continued)
At June 30, 2015, the effect of permanent book/tax reclassifications resulted in increases/(decreases) to the components of net assets as follows:
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Fund | Undistributed Net Investment Income | Accumulated Net Realized Gains/(Losses) | Paid-in Capital | |||||||||
Accuvest Global Long Short ETF | $ | 15,622 | $ | (156,029 | ) | $ | 140,407 | |||||
Athena High Dividend ETF | 21,683 | (15,795 | ) | (5,888 | ) | |||||||
EquityPro ETF | (64,028 | ) | (160,628 | ) | 224,656 | |||||||
Gartman Gold/Euro ETF | 78,774 | 765,406 | (844,180 | ) | ||||||||
Gartman Gold/Yen ETF | 88,619 | 544,352 | (632,971 | ) | ||||||||
Global Echo ETF | 21,767 | (440,682 | ) | 418,915 | ||||||||
Madrona Domestic ETF | — | (4,608,427 | ) | 4,608,427 | ||||||||
Madrona Global Bond ETF | 28,917 | (28,917 | ) | — | ||||||||
Madrona International ETF | 697 | (1,918,468 | ) | 1,917,771 | ||||||||
Meidell Tactical Advantage ETF | (1,193 | ) | (440,631 | ) | 441,824 | |||||||
Morgan Creek Global Tactical ETF | 41,886 | (1,333,530 | ) | 1,291,644 | ||||||||
Newfleet Multi-Sector Income ETF | 348,719 | (348,719 | ) | — | ||||||||
Pacific Asset Enhanced Floating Rate ETF | 5,757 | (5,757 | ) | — | ||||||||
Peritus High Yield ETF | 1,953,259 | (3,495,231 | ) | 1,541,972 | ||||||||
Pring Turner Business Cycle ETF | 6,501 | (39,111 | ) | 32,610 | ||||||||
QAM Equity Hedge ETF | 5,364 | (195,588 | ) | 190,224 | ||||||||
Ranger Equity Bear ETF | 4,544,062 | (173,304 | ) | (4,370,758 | ) | |||||||
Sage Core Reserves ETF | 98,713 | (98,713 | ) | — | ||||||||
STAR Global Buy-Write ETF | 48,343 | (690,474 | ) | 642,131 | ||||||||
Sunrise Global Multi-Strategy ETF | 363 | (53,295 | ) | 52,932 | ||||||||
TrimTabs Float Shrink ETF | (46 | ) | (30,484,934 | ) | 30,484,980 | |||||||
WCM/BNY Mellon Focused Growth ADR ETF | (207 | ) | (314,359 | ) | 314,566 | |||||||
YieldPro ETF | 183,469 | (85,998 | ) | (97,471 | ) |
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.
179
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2015
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8. Federal Income Tax - (continued)
The tax character of distributions paid during the years ended June 30, 2015 and 2014 were:
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Fund | 2015 Ordinary Income | 2015 Long Term Capital Gains | 2014 Ordinary Income | 2014 Long Term Capital Gains | ||||||||||||
Athena High Dividend ETF | $ | 529,121 | $ | — | $ | — | $ | — | ||||||||
EquityPro ETF | 528,866 | 204,411 | 154,669 | — | ||||||||||||
Gartman Gold/Euro ETF | 78,602 | 76,110 | — | — | ||||||||||||
Gartman Gold/Yen ETF | 143,054 | 178,043 | — | — | ||||||||||||
Global Echo ETF | 43,499 | 2,578 | 2,380 | — | ||||||||||||
Madrona Domestic ETF | 96,271 | — | 59,938 | — | ||||||||||||
Madrona Global Bond ETF | 823,886 | — | 761,153 | — | ||||||||||||
Madrona International ETF | 304,843 | — | 318,396 | — | ||||||||||||
Meidell Tactical Advantage ETF | 93,938 | — | — | — | ||||||||||||
Morgan Creek Global Tactical ETF | 354,156 | — | — | — | ||||||||||||
Newfleet Multi-Sector Income ETF | 5,247,098 | — | 2,905,125 | — | ||||||||||||
Pacific Asset Enhanced Floating Rate ETF | 316,679 | — | — | — | ||||||||||||
Peritus High Yield ETF | 48,496,620 | — | 45,680,132 | — | ||||||||||||
Pring Turner Business Cycle ETF | 53,639 | — | 59,326 | — | ||||||||||||
QAM Equity Hedge ETF | 28,704 | 36,225 | 92,485 | 26,668 | ||||||||||||
Sage Core Reserves ETF | 147,384 | — | 119,991 | — | ||||||||||||
Sunrise Global Multi-Strategy ETF | 45,346 | — | — | — | ||||||||||||
TrimTabs Float Shrink ETF | 1,045,971 | — | 300,553 | — | ||||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 94,665 | — | 54,540 | — | ||||||||||||
YieldPro ETF | 2,337,383 | — | 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, 2015 are as follows:
![]() | ![]() | ![]() | ![]() | |||||||||
Fund | Late Year Ordinary Deferral | Short-Term Post-October Loss | Long-Term Post-October Loss | |||||||||
Accuvest Global Long Short ETF | $ | — | $ | 994,172 | $ | 1 | ||||||
Athena High Dividend ETF | — | 1,025,539 | — | |||||||||
Madrona Domestic ETF | — | 507,970 | 181,955 | |||||||||
Madrona Global Bond ETF | — | — | 141,828 | |||||||||
Madrona International ETF | — | 947,362 | 124,595 | |||||||||
Morgan Creek Global Tactical ETF | 49,931 | 183,358 | — | |||||||||
Newfleet Multi-Sector Income ETF | — | 579,219 | 222,148 | |||||||||
Pacific Asset Enhanced Floating Rate ETF | — | 15,830 | — | |||||||||
Peritus High Yield ETF | — | 62,885,772 | 35,005,175 | |||||||||
Pring Turner Business Cycle ETF | — | 219,147 | 103,945 | |||||||||
QAM Equity Hedge ETF | 29,206 | — | — | |||||||||
Ranger Equity Bear ETF | 1,549,999 | 12,878,483 | — |
180
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2015
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8. Federal Income Tax - (continued)
![]() | ![]() | ![]() | ![]() | |||||||||
Fund | Late Year Ordinary Deferral | Short-Term Post-October Loss | Long-Term Post-October Loss | |||||||||
Sage Core Reserves ETF | $ | — | $ | 50,439 | $ | 63,249 | ||||||
STAR Global Buy-Write ETF | 3,196 | — | — | |||||||||
Sunrise Global Multi-Strategy ETF | 45,447 | — | 51,731 | |||||||||
TrimTabs Float Shrink ETF | — | 3,925,462 | — | |||||||||
YieldPro ETF | — | 2,566,012 | 33,867 |
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 | $ | 12,162,244 | $ | 421,058 | $ | 12,583,302 | ||||||
Athena High Dividend ETF | 299,791 | — | 299,791 | |||||||||
Madrona Domestic ETF | 797,082 | 193,546 | 990,628 | |||||||||
Madrona Global Bond ETF | 207,121 | 152,523 | 359,644 | |||||||||
Madrona International ETF | 2,120,908 | — | 2,120,908 | |||||||||
Meidell Tactical Advantage ETF | 658,804 | — | 658,804 | |||||||||
Morgan Creek Global Tactical ETF | 19,011,958 | — | 19,011,958 | |||||||||
Newfleet Multi-Sector Income ETF | 457,334 | 88,927 | 546,261 | |||||||||
Peritus High Yield ETF | 18,015,087 | 5,033,549 | 23,048,636 | |||||||||
Pring Turner Business Cycle ETF | 110,781 | — | 110,781 | |||||||||
Ranger Equity Bear ETF | 156,506,507 | — | 156,506,507 | |||||||||
Sage Core Reserves ETF | 25,960 | — | 25,960 | |||||||||
STAR Global Buy-Write ETF | — | 173,044 | 173,044 | |||||||||
Sunrise Global Multi-Strategy ETF | 98,290 | — | 98,290 | |||||||||
TrimTabs Float Shrink ETF | 7,755,380 | — | 7,755,380 | |||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 92,950 | 298,855 | 391,805 | |||||||||
YieldPro ETF | 1,767,067 | — | 1,767,067 |
The following Funds utilized capital loss carryforwards to offset taxable capital gains realized during the year ended June 30, 2015:
![]() | ![]() | |||
Fund | Amount | |||
Global Echo ETF | $ | 13,478 | ||
Madrona Domestic ETF | 486 | |||
Morgan Creek Global Tactical ETF | 260,244 | |||
STAR Global Buy-Write ETF | 1,340 | |||
WCM/BNY Mellon Focused Growth ADR ETF | 58,175 |
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
181
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2015
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8. Federal Income Tax - (continued)
likelihood to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. The carry forward capital losses noted above are all post-enactment capital loss carry forwards.
9. 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, 2015 are as follows:
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Affiliated Fund Name | Value at 06/30/2014 | Purchases/ Additions | Sales/ Reductions | Value at 6/30/2015 | Dividend Income | Realized Gain (Loss) | ||||||||||||||||||
Global Echo ETF | ||||||||||||||||||||||||
Ranger Equity Bear ETF | $ | 11,780 | $ | 1,361 | $ | (13,669 | ) | $ | — | $ | — | $ | (461 | ) | ||||||||||
Sage Core Reserves ETF | 1,098,409 | 49,940 | (1,147,794 | ) | — | — | (2,261 | ) | ||||||||||||||||
Madrona Global Bond ETF | ||||||||||||||||||||||||
Peritus High Yield ETF | 3,112,080 | 405,318 | (3,191,587 | ) | — | 57,711 | (163,677 | ) | ||||||||||||||||
Meidell Tactical Advantage ETF | ||||||||||||||||||||||||
Sage Core Reserves ETF | — | 740,093 | (739,157 | ) | — | 94 | (936 | ) | ||||||||||||||||
Pring Turner Business Cycle ETF | ||||||||||||||||||||||||
Peritus High Yield ETF | 234,467 | 32,691 | (222,722 | ) | — | 7,858 | (36,870 | ) | ||||||||||||||||
QAM Equity Hedge ETF | ||||||||||||||||||||||||
Sage Core Reserves ETF | 419,202 | 69,615 | (139,283 | ) | 347,795 | 1,556 | (333 | ) | ||||||||||||||||
Ranger Equity Bear ETF | ||||||||||||||||||||||||
Sage Core Reserves ETF | 29,943,000 | — | — | 29,811,000 | 118,989 | — | ||||||||||||||||||
STAR Global Buy-Write ETF | ||||||||||||||||||||||||
Sage Core Reserves ETF | 262,001 | 12,425 | (24,889 | ) | 248,425 | 1,003 | (111 | ) | ||||||||||||||||
YieldPro ETF | ||||||||||||||||||||||||
Peritus High Yield ETF | 10,049,182 | — | (9,444,655 | ) | — | 174,117 | (490,110 | ) |
182
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2015
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10. Investment Transactions
Purchases and sales of investments for the year ended June 30, 2015 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 | $ | 61,959,309 | $ | — | $ | 10,927,144 | $ | 64,148,819 | $ | — | 20,849,062 | |||||||||||||
Athena High Dividend ETF | 22,657,615 | — | 18,311,868 | 22,425,724 | — | — | ||||||||||||||||||
EquityPro ETF | 85,111,513 | — | 11,129,191 | 85,287,428 | — | 11,422,839 | ||||||||||||||||||
Global Echo ETF | 4,515,365 | — | 934,701 | 5,255,968 | — | 1,811,051 | ||||||||||||||||||
Madrona Domestic ETF | 21,194,485 | — | 5,165,187 | 4,391,580 | — | 16,674,191 | ||||||||||||||||||
Madrona Global Bond ETF | 9,142,245 | — | 5,140,741 | 9,092,103 | — | — | ||||||||||||||||||
Madrona International ETF | 27,287,484 | — | 1,374,040 | 15,393,417 | — | 12,246,366 | ||||||||||||||||||
Meidell Tactical Advantage ETF | 61,159,561 | — | 12,123,292 | 61,126,969 | — | 11,534,828 | ||||||||||||||||||
Morgan Creek Global Tactical ETF | 38,433,968 | — | — | 43,005,946 | — | 21,223,718 | ||||||||||||||||||
Newfleet Multi-Sector Income ETF | 125,718,786 | 18,982,150 | — | 67,702,191 | 21,273,353 | — | ||||||||||||||||||
Pacific Asset Enhanced Floating Rate ETF | 54,400,253 | — | — | 26,765,281 | — | — | ||||||||||||||||||
Peritus High Yield ETF | 524,418,498 | — | 9,778,318 | 753,025,960 | — | 278,139,770 | ||||||||||||||||||
Pring Turner Business Cycle ETF | 3,362,037 | — | 622,074 | 3,211,088 | — | 504,728 | ||||||||||||||||||
QAM Equity Hedge ETF | 10,011,421 | — | 1,233,709 | 9,874,405 | — | 2,615,349 | ||||||||||||||||||
Ranger Equity Bear ETF | 770,767,975 | — | — | 729,575,510 | — | — | ||||||||||||||||||
Sage Core Reserves ETF | 12,594,708 | — | — | 15,385,463 | — | — | ||||||||||||||||||
STAR Global Buy-Write ETF | 14,889,119 | — | 1,173,914 | 10,468,525 | — | 2,203,312 | ||||||||||||||||||
Sunrise Global Multi Strategy ETF | 3,467,999 | — | 3,004,527 | 3,615,520 | — | 1,495,978 | ||||||||||||||||||
TrimTabs Float Shrink ETF | 94,570,185 | — | 704,482,402 | 331,842,168 | — | 376,977,599 | ||||||||||||||||||
WCM/BNY Mellon Focused Growth ADR ETF | 3,873,731 | — | 3,605,547 | 4,232,128 | — | 939,935 | ||||||||||||||||||
YieldPro ETF | 66,469,065 | — | 5,044,252 | 74,249,615 | — | 31,821,881 |
Options Written transactions, during the year ended June 30, 2015, were as follows:
![]() | ![]() | ![]() | ||||||
QAM Equity Hedge ETF | Contracts | Premiums Paid/Received | ||||||
Options outstanding at June 30, 2014 | — | $ | — | |||||
Options written | 60 | 358 | ||||||
Options terminated in closing purchase transactions | — | — | ||||||
Options expired | (60 | ) | (358 | ) | ||||
Options exercised | — | — | ||||||
Options outstanding at June 30, 2015 | — | — |
![]() | ![]() | ![]() | ||||||
STAR Global Buy-Write ETF | Contracts | Premiums Paid/Received | ||||||
Options outstanding at June 30, 2014 | 1,030 | $ | 57,243 | |||||
Options written | 9,050 | 726,138 | ||||||
Options terminated in closing purchase transactions | (5,841 | ) | (484,805 | ) | ||||
Options expired | (2,535 | ) | (155,115 | ) | ||||
Options exercised | (1,112 | ) | (74,030 | ) | ||||
Options outstanding at June 30, 2015 | 592 | 69,431 |
183
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2015
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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. Subsequent Events
The Funds have adopted authoritative standards of accounting for disclosure of events that occur after the Statements of Assets 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.
184
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2015
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12. Subsequent Events - (continued)
Since June 30, 2015, the following events occurred:
On July 28, 2015, the Advisor announced it will liquidate Accuvest Global Long Short ETF. The Trust’s Board of Trustees approved the liquidation of the Fund. Accordingly, the Fund is expected to cease operations, liquidate its assets, and distribute the liquidation proceeds to shareholders of record on August 14, 2015.
The following Funds paid dividends after June 30, 2015:
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Fund | Ticker | Ordinary Income Per Share Distributed | Payable Date | |||||||||
Peritus High Yield ETF | HYLD | $ | 0.29998 | 07/30/2015 | ||||||||
Madrona Global Bond ETF | FWDB | $ | 0.06215 | 07/30/2015 | ||||||||
Newfleet Multi-Sector Income ETF | MINC | $ | 0.09423 | 07/30/2015 | ||||||||
Sage Core Reserves ETF | HOLD | $ | 0.03877 | 07/30/2015 | ||||||||
YieldPro ETF | YPRO | $ | 0.01773 | 07/30/2015 | ||||||||
Pacific Asset Enhanced Floating Rate | FLRT | $ | 0.14686 | 07/30/2015 | ||||||||
Athena High Dividend ETF | DIVI | $ | 0.02010 | 07/30/2015 |
13. Unaudited Tax Information
Qualified Dividend Income — Certain dividends paid by the Funds may be subject to a minimum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The percentage of ordinary income distributions for the period ended June 30, 2015, taxed at a maximum rate of 15% were:
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Fund | Percentage | |||
Athena High Dividend ETF | 94.21 | % | ||
EquityPro ETF | 56.06 | % | ||
Gartman Gold/Euro ETF | 12.31 | % | ||
Gartman Gold/Yen ETF | 9.14 | % | ||
Global Echo ETF | 29.18 | % | ||
Madrona Domestic ETF | 100.00 | % | ||
Madrona Global Bond ETF | 17.46 | % | ||
Madrona International ETF | 93.26 | % | ||
Meidell Tactical Advantage ETF | 28.48 | % | ||
Morgan Creek Global Tactical ETF | 100.00 | % | ||
Peritus High Yield ETF | 4.76 | % | ||
Pring Turner Business Cycle ETF | 100.00 | % | ||
QAM Equity Hedge ETF | 35.23 | % | ||
Sunrise Global Multi-Strategy ETF | 69.28 | % | ||
TrimTabs Float Shrink ETF | 100.00 | % | ||
WCM/BNY Mellon Focused Growth ADR ETF | 100.00 | % | ||
YieldPro ETF | 61.46 | % |
185
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2015
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13. Unaudited Tax Information - (continued)
Dividends Received Deduction — For corporate shareholders, the percentage of ordinary income distributions for the period ended June 30, 2015 that qualifies for the dividends received deduction were:
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Fund | Percentage | |||
Athena High Dividend ETF | 78.62 | % | ||
EquityPro ETF | 56.06 | % | ||
Global Echo ETF | 29.18 | % | ||
Madrona Domestic ETF | 100.00 | % | ||
Madrona Global Bond ETF | 9.34 | % | ||
Meidell Tactical Advantage ETF | 28.48 | % | ||
Morgan Creek Global Tactical ETF | 53.99 | % | ||
Pring Turner Business Cycle ETF | 93.99 | % | ||
QAM Equity Hedge ETF | 22.36 | % | ||
Sunrise Global Multi-Strategy ETF | 76.54 | % | ||
TrimTabs Float Shrink ETF | 100.00 | % | ||
YieldPro ETF | 59.80 | % |
Qualified Interest Income — For nonresident alien shareholders, the percentage of ordinary income distributions for the period ended June 30, 2015 that qualifies as qualified interest income were:
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Fund | Percentage | |||
Madrona Global Bond ETF | 43.90 | % | ||
Newfleet Multi-Sector Income ETF | 100.00 | % | ||
Pacific Asset Enhanced Floating Rate ETF | 100.00 | % | ||
Peritus High Yield ETF | 83.36 | % | ||
Sage Core Reserves ETF | 100.00 | % | ||
YieldPro ETF | 45.00 | % |
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 | ||||||
EquityPro ETF | $ | 11,059 | $ | 180,999 | ||||
Madrona International ETF | 47,368 | 429,241 | ||||||
Meidell Tactical Advantage ETF | 4,909 | 67,684 | ||||||
Morgan Creek Global Tactical ETF | 20,345 | 200,997 |
186
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, Athena High Dividend ETF, EquityPro ETF, Global Echo ETF, Madrona Domestic ETF, Madrona Global Bond ETF, Madrona International ETF, Meidell Tactical Advantage ETF, Morgan Creek Global Tactical ETF (formerly known as Cambria Global Tactical ETF), Newfleet Multi-Sector Income ETF, Pacific Asset Enhanced Floating Rate ETF, Peritus High Yield ETF, Pring Turner Business Cycle ETF, QAM Equity Hedge ETF, Ranger Equity Bear ETF, Sage Core Reserves ETF, STAR Global Buy-Write ETF, Sunrise Global Multi-Strategy ETF, TrimTabs Float Shrink ETF, WCM/BNY Mellon Focused Growth ADR ETF, and YieldPro ETF, each a series of AdvisorShares Trust (the “Trust”), including the schedules of investments as of June 30, 2015, and the related statements of operations, the statements of changes in net assets and the financial highlights for the periods indicated thereon, and with respect to Accuvest Global Long Short ETF, QAM Equity Hedge ETF, and Ranger Equity Bear ETF, the statements of cash flows for the year ended June 30, 2015. We have audited the accompanying consolidated statements of assets and liabilities of Gartman Gold/Euro ETF and Gartman Gold/Yen ETF, each a series of AdvisorShares Trust (the “Trust”), including the consolidated schedules of investments as of June 30, 2015, 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, 2015, 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, Athena High Dividend ETF, EquityPro ETF, Global Echo ETF, Madrona Domestic ETF, Madrona Global Bond ETF, Madrona International ETF, Meidell Tactical Advantage ETF, Morgan Creek Global Tactical ETF, Newfleet Multi-Sector Income ETF, Pacific Asset Enhanced Floating Rate ETF, Peritus High Yield ETF, Pring Turner Business Cycle ETF, QAM Equity Hedge ETF, Ranger Equity Bear ETF, Sage Core Reserves ETF, STAR Global Buy-Write ETF, Sunrise Global Multi-Strategy ETF, TrimTabs Float Shrink ETF, WCM/BNY Mellon Focused Growth ADR ETF, and YieldPro ETF, as of June 30, 2015, and the results of their operations, their cash flows (for Accuvest Global Long Short ETF, QAM Equity Hedge ETF, and Ranger Equity Bear ETF), 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 and Gartman Gold/Yen ETF as of June 30, 2015, 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 28, 2015
187
ADVISORSHARES TRUST
Board of Trustees and Officers (Unaudited)
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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. More information about the Trustees is in the Trust’s Statement of Additional Information, which is available without charge by calling 1-877-843-3831.
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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 | Other Directorships Held by Trustee During Past 5 Years | ||||||||||||
Interested Trustee | ||||||||||||||||
Noah Hamman* 4800 Montgomery Lane, Suite 150 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). | 23 | None | ||||||||||||
Independent Trustees | ||||||||||||||||
Elizabeth (“Betsy”) Piper/Bach 4800 Montgomery Lane, Suite 150 Bethesda, MD 20814 (1952) | Trustee (no set term); served since 2009 | Vice President/Chief Operating Officer of NADA Retirement Administrators, Inc. (2009 – present). | 23 | None | ||||||||||||
William G. McVay 4800 Montgomery Lane, Suite 150 Bethesda, MD 20814 (1954) | Trustee (no set term); served since 2011 | Founder of RDK Strategies, LLC (2007 – present). | 23 | None | ||||||||||||
Officers | ||||||||||||||||
Noah Hamman 4800 Montgomery Lane, Suite 150 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). | N/A | N/A |
188
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 | 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). | N/A | N/A | ||||
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). | N/A | N/A |
* | 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. |
189
Board Review of Investment Advisory and Sub-Advisory Agreements
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Renewal of the Advisory Agreement for Each Fund and the Sub-Advisory Agreement for 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 Sage Core Reserves ETF
At meetings of the Board of Trustees (the “Board”) of AdvisorShares Trust (the “Trust”) held on February 23, 2015 and May 13, 2015, 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, (6) Accuvest Global Advisors, on behalf of the AdvisorShares Accuvest Global Long Short ETF, and (7) Sage Advisory Services Ltd. Co., on behalf of the AdvisorShares Sage Core Reserves 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 of the 1940 Act, to continue after their initial two-year term, the Advisory Agreements must be approved annually: (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 provided by the Advisor and each Sub-Advisor; (ii) the investment performance of each Fund; (iii) the costs of the services provided and profits and other benefits realized by the Advisor, each Sub-Advisor, and their affiliates from the relationship with each Fund; (iv) the personnel and operations of each Sub-Advisor; (v) the extent to which economies of scale would be realized as each Fund grows; and (vi) whether fee levels reflect the sharing of these economies of scale for the benefit of each Fund’s shareholders, as discussed in further detail below.
At the meetings, the Board was presented with additional information to help it evaluate the Advisor’s and each Sub-Advisor’s fee and other aspects of the Advisory Agreements. The Board received an overview of the Advisor’s and Sub-Advisor’s operations and management of the Funds, including comparative fee data and profitability analysis for each Fund, and was also provided with information with respect to compliance oversight. The Board reviewed the management of each Fund, including the Fund’s strategy, the focus in the markets, the Fund’s positioning in the market, and its attractive and unique offering. The Board reviewed the Advisor’s and each Sub-Advisor’s overall business generally, including any noteworthy personnel changes. The Board deliberated on the renewal of the Advisory Agreements in light of the written materials that it received before the meetings, information it received at the meetings, and information it had received at prior board meetings. In its
190
Board Review of Investment Advisory and Sub-Advisory Agreements (Continued)
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deliberations, the Board considered the factors and reached the conclusions described below relating to the selection of the Advisor and each Sub-Advisor and the renewal of each Advisory Agreement. The Board did not identify any single piece of information discussed below that was all-important, controlling or determinative of its decision.
Nature, Extent and Quality of Services
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 also was provided to the Board, as were the responses of the Advisor and each Sub-Advisor to a detailed series of questions that 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 and each Sub-Advisor’s overall quality of personnel, operations, and financial condition, its investment advisory capabilities, and information concerning the Advisor’s and 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 for various periods, as well as comparative performance information. The Advisor and each Sub-Advisor provided information regarding factors impacting the performance of the Funds, outlining current market conditions, and explaining its expectations and strategies for the future. In particular, a representative from Accuvest Global Advisors addressed the performance of the AdvisorShares Accuvest Global Long Short ETF and discussed strategies to improve its performance. Based on the information provided by the Advisor and each Sub-Advisor, the Board concluded that generally it was satisfied with the investment results that the Advisor and each Sub-Advisor had been able to achieve for its respective Fund.
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 the advisory fees paid by each Fund to the Advisor, the sub-advisory fees paid by the Advisor to each Sub-Advisor, the fees waived and/or expenses 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 information comparing the advisory fees paid by each Fund to those paid by comparable 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 and concluded that no significant economies of scale had yet been achieved.
191
Board Review of Investment Advisory and Sub-Advisory Agreements (Continued)
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Conclusion
Based on the Board’s deliberations and its evaluation of the information described above, the Board, including all of the Independent Trustees, unanimously: (i) concluded that the terms of each Advisory Agreement 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 each Advisory Agreement for another year.
Approval of New and Interim Sub-Advisory Agreements for AdvisorShares TrimTabs Float Shrink ETF
On May 31, 2015, TrimTabs Asset Management, LLC (“TrimTabs”) concluded a transaction with Silk Partners, L.P., an affiliate of Siget NY Partners, LP, a Family Office of Simon Glick and Seymour Pluchenik, pursuant to which a wholly-owned subsidiary of Silk Partners, L.P. acquired a controlling interest in TrimTabs (the “Transaction”). The Transaction caused a change of control of TrimTabs under the 1940 Act, resulting in the assignment and automatic termination of the investment sub-advisory agreement dated May 9, 2011 between the Advisor and TrimTabs with respect to the AdvisorShares TrimTabs Float Shrink ETF (the “Fund”) (the “Prior Sub-Advisory Agreement”).
In anticipation of the Transaction, at a meeting of the Board held on May 27, 2015, the Board, including the Independent Trustees, considered the approval of a new sub-advisory agreement between the Advisor and TrimTabs (the “New Sub-Advisory Agreement”), on behalf of the Fund, noting that it had considered and approved the annual renewal of the Prior Sub-Advisory Agreement at its February 23, 2015 meeting. The Board also considered and approved an interim sub-advisory agreement that became effective at the termination of the Prior Sub-Advisory Agreement and is intended to continue in effect until the New Sub-Advisory Agreement is approved by shareholders of the Fund. With respect to the Board’s consideration and approval, references below to the New Sub-Advisory Agreement also refer to the interim sub-advisory agreement.
At the meetings, the Board reviewed and discussed information and analysis provided by TrimTabs and the Advisor. At the May meeting, the Board also reviewed and discussed information provided by Silk Partners, L.P. regarding the Transaction. All of this information formed the primary, but not exclusive, basis for the Board’s determination. Below is a summary of the factors considered by the Board and the conclusions that formed the basis for the Board’s approval. 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 the Services to be Provided
In considering the nature, extent and quality of the services provided by TrimTabs, the Board reviewed the portfolio management services provided to the Fund. The most recent Form ADV for TrimTabs also was provided to the Board, as were the TrimTabs’ responses to a detailed series of questions that requested, among other things, information about the background and experience of the portfolio managers primarily responsible for the day-to-day management of the Fund. The Board also considered TrimTabs’ overall quality of personnel, operations, and financial condition, its investment advisory capabilities, and information concerning its compliance function, operational capabilities, and portfolio management team. The Board noted that TrimTabs generally does not expect any change in its resources or capabilities as a result of the Transaction except that it expects to have additional financial resources available to it in the future. Based on the factors above, as well as those discussed below, the Board concluded that it was satisfied with the nature, extent and quality of the services provided to the Fund by TrimTabs.
192
Board Review of Investment Advisory and Sub-Advisory Agreements (Continued)
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Performance
The Board was provided information regarding the Fund’s performance. Information also was provided regarding factors impacting the performance of the Fund, outlining current market conditions, and explaining its expectations and strategies for the future. Based on this information, the Board concluded that it was satisfied with the investment results that TrimTabs has been able to achieve for the Fund.
Cost of Services, Profitability, and Economies of Scale
In concluding that the sub-advisory fee payable with respect to the Fund was reasonable, the Board reviewed the sub-advisory fee paid by the Advisor to TrimTabs, the fees waived and/or expenses reimbursed by TrimTabs over the period, the costs and other expenses incurred by TrimTabs in providing advisory services, and the profitability analysis with respect to the Fund. The Board also reviewed information comparing the advisory fees paid by the Fund to those paid by comparable funds. The Board noted that the proposed fee under the New Sub-Advisory Agreement is the same as the fee under the Prior Sub-Advisory Agreement. The Board concluded that the fee appeared reasonable in light of the services rendered. In addition, the Board considered whether economies of scale were realized during the period of the Prior Sub-Advisory Agreement and concluded that no significant economies of scale had yet been achieved.
Conclusion
Based on its deliberations and evaluation of the information described above, the Board, including the Independent Trustees, concluded that the terms of the New Sub-Advisory Agreement, including the fee, are fair and reasonable in light of the services that TrimTabs provides to the Fund. For these reasons, the Board unanimously approved the New Sub-Advisory Agreement.
193
SUPPLEMENTAL INFORMATION
Quarterly Portfolio Holdings Information
The Funds are 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 on the SEC’s website at www.sec.gov. You can also obtain copies of Form N-Q by 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.
Proxy Voting Information
A description of the Funds proxy voting policies and procedures, as well as a record of how the Funds voted proxies during the most recent 12-month period ended June 30, is available without charge upon request by calling 1-877-843-3831. This information is also available on the SEC’s website at www.sec.gov.
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.
194
ADVISORSHARES TRUST
Investment Advisor
AdvisorShares Investments, LLC
4800 Montgomery Lane, Suite 150
Bethesda, MD 20814
Sub-Advisors
WCM Investment Management
281 Brooks Street
Laguna Beach, CA 92651
Madrona Funds, LLC
2911 Bond Street, Suite 105
Everett, WA 98201
Accuvest Global Advisors
3100 Oak Road, Suite 380
Walnut Creek, CA 94597
Morgan Creek Capital Management, LLC
301 West Barbee Chapel Road, Suite 200
Chapel Hill, NC 27517
Ranger Alternative Management, L.P.
300 Crescent Court, Suite 1100
Dallas, TX 75201
Peritus I Asset Management, LLC
26 West Anapamu, 3rd Floor
Santa Barbara, CA 93103
American Wealth Management
570 Hammill Lane
Reno, NV 89511
TrimTabs Asset Management, LLC
2018 Stony Oak Court
Santa Rosa, CA 95403
Community Capital Management, Inc.
2500 Weston Road, Suite 101
Weston, FL 33331
Reynders, McVeigh Capital Management, LLC
121 High Street, 5th Floor
Boston, MA 02110
Baldwin Brothers, Inc.
204 Spring Street
Marion, MA 02738
Newfleet Asset Management, LLC
100 Pearl Street
Hartford, CN 06103
Partnervest Advisory Services, LLC
1216 State Street, 3rd Floor
Santa Barbara, CA 93101
Pring Turner Capital Group
1600 South Main Street, Suite 375
Walnut Creek, CA 94596
Commerce Asset Management, LLC
6075 Poplar Avenue, Suite 700
Memphis, TN 38119
The Elements Financial Group, LLC
19200 Von Karman Avenue, Suite 800
Irvine, CA 92612
AthenaInvest, Inc.
5340 South Quebec Street, Suite 365-N
Greenwood Village, CO 80111
Treesdale Partners, LLC
1325 Avenue of the Americas, Suite 2302
New York, NY 10019
Sage Advisory Services, Ltd. Co.
5900 Southwest Parkway, Building I
Austin, TX 78735
Sunrise Capital Partners LLC
12544 High Bluff Drive, Suite 400
San Diego, CA 92130
Pacific Life Fund Advisors, LLC
700 Newport Center Drive
Newport Beach, CA 92660
Distributor
Foreside Fund Services, LLC
Three Canal Plaza, Suite 100
Portland, ME 04101
Custodian/Fund Administrator/Transfer Agent
The Bank of New York Mellon
101 Barclay Street
New York, NY 10286
Legal Counsel
Morgan, Lewis & Bockius LLP
2020 K Street, N.W.
Washington, DC 20006
Independent Registered Public Accounting Firm
Tait, Weller & Baker LLP
1818 Market Street, Suite 2400
Philadelphia, PA 19103
This report is submitted for the general information of the shareholders of the Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus, which includes information regarding the Fund’s risks, objectives, fees and expenses, experience of management and other information.
Item 2. Code of Ethics.
(a) | The registrant, 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 $315,900 for 2015 and $299,400 for 2014. |
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 2015 and $0 for 2014. |
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 $66,700 for 2015 and $67,200 for 2014. |
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 2015 and $0 for 2014. |
(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) | The percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees was less than fifty percent. |
(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 2015 and $0 for 2014. |
(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 10/8/2015
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 10/8/2015
By (Signature and Title)* /s/ Dan Ahrens
Dan Ahrens, Treasurer
(principal financial officer)
Date 10/8/2015
* Print the name and title of each signing officer under his or her signature.