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 811-22732
Recon Capital Series Trust, formerly known as ETF Series Trust
(Exact name of registrant as specified in charter)
145 Mason St, 2nd Fl
Greenwich, CT 06830
(Address of principal executive offices) (Zip code)
Corporation Service Company
2711 Centerville Road, Suite 400
Wilmington, DE 19808
(Name and address of agent for service)
With a copy to:
Bibb L. Strench, Esq.
Seward & Kissel LLP
901 K Street, N.W., Ste. 800
Washington, DC 20001
(202) 661-7141, strench@sewkis.com
Registrant's telephone number, including area code: (203) 900-1400
Date of fiscal year end: October 31
Date of reporting period: April 30, 2015
Item 1. Reports to Stockholders.
The Report to Shareholders is attached herewith.
Semi-Annual Report
April 30, 2015
unaudited
Recon Capital Series Trust
Recon Capital Series Trust, formerly ETF Series Trust (the “Trust”) was organized as a Delaware statutory trust on May 17, 2012 and is currently comprised of three investment portfolios. These financial statements relate to the Recon Capital DAX Germany ETF (“DAX”), Recon Capital FTSE 100 ETF (“FTSE”) and Recon Capital NASDAQ 100 Covered Call ETF (“NASDAQ”) (each a “Fund” and collectively, the Funds).
DAX® is a registered trademark of Deutsche Börse AG and has been licensed for use by Recon Capital Partners, LLC and the Recon Capital DAX Germany ETF. The Fund is not sponsored, endorsed, issued, sold or promoted by of Deutsche Börse AG, nor does this company make any representation regarding the advisability of investing in the Fund.
FTSE® is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license.
NASDAQ 100® is a registered trademark of The NASDAQ Stock Market, Inc. and has been licensed for use by Recon Capital Partners, LLC and the Recon Capital NASDAQ 100® Covered Call ETF. The Fund is not sponsored, endorsed, issued, sold or promoted by NASDAQ, nor does this company make any representation regarding the advisability of investing in the Fund.
The financial statements contained herein are submitted for the general information of the shareholders of each Fund. This report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
Not FDIC Insured • No Bank Guarantee • May Lose Value
Foreside Fund Services, LLC, distributor.
An investment in each Fund is subject to investment risk, including the possible loss of principal amount invested. The risks associated with the Funds are detailed in the prospectus which includes: stock market risk, index risk, tracking error risk, replication management risk, market price risk and trading halts risk.
Shares are bought and sold at market price (not NAV), are not individually redeemable, and owners of the Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only.
|
| TABLE OF CONTENTS |
| April 30, 2015 (Unaudited) |
|
| Shareholder Expense Example |
| April 30, 2015 (Unaudited) |
As a shareholder of Recon Capital DAX Germany ETF, Recon Capital FTSE 100 ETF or Recon Capital NASDAQ 100 Covered Call ETF, you incur a unitary management fee. The following example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds. The example is based on an investment of $1,000 invested at the beginning of the period and held throughout the entire period (from November 1, 2014 to April 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 in this line, together with the amount you invested, to estimate the expenses that you paid 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 in the first line for the Funds under the heading entitled “Expenses Paid during the Period” to estimate the expenses you paid on 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 Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other 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 the ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of Fund shares. Therefore, the second line under each Fund in the table is useful in comparing the ongoing Fund 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.
| | Beginning
Account
Value
11/01/14 | | Ending
Account
Value
04/30/15 | | Annualized
Expense Ratios
for the Period
11/01/14 to 4/30/15 | | Expenses Paid
During Period
11/01/14 to 4/30/15 |
| Recon Capital DAX Germany ETF* | | | | | | | |
| Actual | $1,000.00 | | $1,093.70 | | 0.45% | | $2.34 |
| Hypothetical (5% return before expenses) | $1,000.00 | | $1,022.56 | | 0.45% | | $2.26 |
| Recon Capital FTSE 100 ETF ** | | | | | | | |
| Actual | $1,000.00 | | $ 933.60 | | 0.45% | | $0.02 |
| Hypothetical (5% return before expenses) | $1,000.00 | | $1,022.56 | | 0.45% | | $2.26 |
| Recon Capital NASDAQ 100 Covered Call ETF * | | | | | | | |
| Actual | $1,000.00 | | $1,022.50 | | 0.60% | | $2.99 |
| Hypothetical (5% return before expenses) | $1,000.00 | | $1,021.84 | | 0.60% | | $2.99 |
| * | Expenses are calculated using the Fund’s annualized expense ratio, multiplied by the ending for the period, multiplied by 181/365 (to reflect the six- month period). |
| ** | Expenses are calculated using the most recent expense ratio, multiplied by the average account value over the period, multiplied by 2/365 (to reflect the period ended April 30, 2015). |
|
| Portfolio of Investments — Recon Capital DAX Germany ETF |
| April 30, 2015 (Unaudited) |
| Security Description | Shares | | Fair
Value |
| | | | |
| Common Stocks — 94.0% | | | | |
| | | | | |
| Consumer Discretionary — 17.0% | | | | |
| adidas AG | 6,231 | | $ | 512,629 |
| Bayerische Motoren Werke AG | 9,492 | | | 1,128,507 |
| Continental AG* | 3,190 | | | 752,980 |
| Daimler AG | 29,542 | | | 2,857,806 |
| | | | | 5,251,922 |
| |
| Consumer Staples — 0.8% | | | | |
| Beiersdorf AG | 2,990 | | | 261,201 |
| |
| Financials — 17.0% | | | | |
| Allianz SE | 13,391 | | | 2,289,806 |
| Commerzbank AG* | 28,141 | | | 382,973 |
| Deutsche Bank AG | 39,239 | | | 1,263,017 |
| Deutsche Boerse AG | 5,444 | | | 453,311 |
| Muenchener Rueckversicherungs- | | | | |
| Gesellschaft AG | 4,481 | | | 878,205 |
| | | | | 5,267,312 |
| |
| Health Care — 15.0% | | | | |
| Bayer AG* | 20,334 | | | 2,959,806 |
| Fresenius Medical Care AG & Co. KGaA | 6,458 | | | 544,403 |
| Fresenius SE & Co. KGaA | 11,808 | | | 706,956 |
| Merck KGaA | 3,865 | | | 419,190 |
| | | | | 4,630,355 |
| |
| Industrials — 11.8% | | | | |
| Deutsche Lufthansa AG* | 13,753 | | | 191,096 |
| Deutsche Post AG | 28,902 | | | 957,172 |
| Siemens AG | 22,963 | | | 2,509,048 |
| | | | | 3,657,316 |
| |
| Information Technology — 8.0% | | | | |
| Infineon Technologies AG | 33,313 | | | 394,940 |
| SAP SE | 27,246 | | | 2,073,937 |
| | | | | 2,468,877 |
| |
| Materials — 15.3% | | | | |
| BASF SE | 27,285 | | | 2,735,780 |
| HeidelbergCement AG | 4,141 | | | 319,478 |
| K+S AG | 5,515 | | | 181,193 |
| LANXESS AG | 2,713 | | | 145,542 |
| Linde AG | 5,158 | | | 1,010,308 |
| ThyssenKrupp AG | 12,944 | | | 346,075 |
| | | | | 4,738,376 |
| Security Description | Shares | | Fair
Value |
| | | | |
| Common Stocks — 94.0% (continued) | | | | |
| | | | | |
| Telecommunication Services — 5.0% | | | | |
| Deutsche Telekom AG | 83,652 | | $ | 1,544,305 |
| | | | | |
| Utilities — 4.1% | | | | |
| E.ON SE | 58,111 | | | 909,023 |
| RWE AG | 14,501 | | | 362,192 |
| | | | | 1,271,215 |
| TOTAL COMMON STOCKS | | | | |
| (Cost $27,801,703) | | | | 29,090,879 |
| | | | | |
| Preferred Stocks — 5.8% | | | | |
| | | | | |
| Consumer Discretionary — 3.8% | | | | |
| Volkswagen AG | 4,605 | | | 1,194,313 |
| | | | | |
| Consumer Staples — 2.0% | | | | |
| Henkel AG & Co. KGaA | 5,257 | | | 613,814 |
| | | | | |
| TOTAL PREFERRED STOCKS | | | | |
| (Cost $1,649,446) | | | | 1,808,127 |
| | | | | |
| TOTAL INVESTMENTS — 99.8% | | | | |
| (Cost $29,451,149) | | | | 30,899,006 |
| | | | | |
| Other Assets in Excess of Liabilities — 0.2% | | | | 55,175 |
| | | | | |
| Total Net Assets — 100.0% | | | $ | 30,954,181 |
| * | Non-income producing security. |
Sector Allocation
(as of April 30, 2015) | | |
| Consumer Discretionary | 20.8 | % |
| Financials | 17.0 | |
| Materials | 15.3 | |
| Health Care | 15.0 | |
| Industrials | 11.8 | |
| Information Technology | 8.0 | |
| Telecommunication Services | 5.0 | |
| Utilities | 4.1 | |
| Consumer Staples | 2.8 | |
| Total Investments | 99.8 | |
| Other Assets in Excess of Liabilities | 0.2 | |
| Net Assets | 100.0 | % |
Percentages indicated are based upon net assets.
The Fund’s portfolio composition is subject to change.
The accompanying notes are an integral part of these financial statements.
|
| Portfolio of Investments — Recon Capital FTSE 100 ETF |
| April 30, 2015 (Unaudited) |
| Security Description | Shares | | Fair
Value |
| | | | |
| Common Stocks — 99.6% | | | | |
| | | | | |
| Consumer Discretionary — 9.9% | | | | |
| Barratt Developments PLC | 896 | | $ | 7,153 |
| Burberry Group PLC | 402 | | | 10,774 |
| Carnival PLC | 166 | | | 7,625 |
| Compass Group PLC | 1,516 | | | 26,955 |
| Dixons Carphone PLC | 904 | | | 5,894 |
| GKN PLC | 1,480 | | | 7,990 |
| InterContinental Hotels Group PLC | 214 | | | 9,221 |
| ITV PLC | 3,402 | | | 13,258 |
| Kingfisher PLC | 2,152 | | | 11,618 |
| Marks & Spencer Group PLC | 1,496 | | | 12,725 |
| Merlin Entertainments PLC | 644 | | | 4,319 |
| Next PLC | 134 | | | 15,135 |
| Pearson PLC | 738 | | | 14,971 |
| Persimmon PLC* | 278 | | | 7,263 |
| Reed Elsevier PLC | 1,028 | | | 17,093 |
| Sky PLC | 954 | | | 15,790 |
| Sports Direct International PLC* | 228 | | | 2,169 |
| Taylor Wimpey PLC | 2,936 | | | 7,499 |
| TUI AG | 392 | | | 7,367 |
| Whitbread PLC | 164 | | | 13,244 |
| WPP PLC | 1,194 | | | 28,000 |
| | | | | 246,063 |
| |
| Consumer Staples — 16.1% | | | | |
| Associated British Foods PLC | 316 | | | 13,874 |
| British American Tobacco PLC | 1,694 | | | 93,522 |
| Coca-Cola HBC AG* | 180 | | | 3,815 |
| Diageo PLC | 2,290 | | | 63,750 |
| Imperial Tobacco Group PLC | 876 | | | 42,970 |
| J Sainsbury PLC | 1,284 | | | 5,369 |
| Reckitt Benckiser Group PLC | 586 | | | 52,465 |
| SABMiller PLC | 860 | | | 45,767 |
| Tesco PLC | 7,382 | | | 25,071 |
| Unilever PLC | 1,096 | | | 48,271 |
| WM Morrison Supermarkets PLC | 1,968 | | | 5,649 |
| | | | | 400,523 |
| |
| Energy — 14.5% | | | | |
| BG Group PLC | 3,094 | | | 56,224 |
| BP PLC | 16,574 | | | 119,735 |
| Royal Dutch Shell PLC Class A | 3,540 | | | 112,039 |
| Royal Dutch Shell PLC Class B | 2,228 | | | 71,713 |
| | | | | 359,711 |
| |
| Financials — 22.6% | | | | |
| 3i Group PLC | 876 | | | 6,818 |
| Aberdeen Asset Management PLC | 908 | | | 6,629 |
| Admiral Group PLC | 178 | | | 4,262 |
| Aviva PLC | 3,592 | | | 29,090 |
| Barclays PLC | 14,900 | | | 58,457 |
| British Land Co. PLC (The) REIT | 920 | | | 11,770 |
| Direct Line Insurance Group PLC | 1,364 | | | 6,689 |
| Hammerson PLC REIT | 712 | | | 7,320 |
| Hargreaves Lansdown PLC | 198 | | | 3,743 |
| HSBC Holdings PLC | 17,332 | | | 172,621 |
| Intu Properties PLC REIT | 834 | | | 4,396 |
| Land Securities Group PLC REIT | 714 | | | 13,704 |
| Legal & General Group PLC | 5,396 | | | 21,560 |
| Security Description | Shares | | Fair
Value |
| | | | |
| Common Stocks — 99.6% (continued) | | | | |
| | | | | |
| Financials — 22.6% (continued) | | | | |
| Lloyds Banking Group PLC | 49,122 | | $ | 58,413 |
| London Stock Exchange Group PLC | 284 | | | 11,125 |
| Old Mutual PLC | 4,442 | | | 16,035 |
| Prudential PLC | 2,320 | | | 58,078 |
| Royal Bank of Scotland Group PLC* | 1,960 | | | 10,196 |
| RSA Insurance Group PLC | 924 | | | 6,072 |
| Schroders PLC | 102 | | | 5,090 |
| St James’s Place PLC | 466 | | | 6,391 |
| Standard Chartered PLC | 1,840 | | | 30,256 |
| Standard Life PLC | 1,778 | | | 12,785 |
| | | | | 561,500 |
| |
| Health Care — 9.8% | | | | |
| AstraZeneca PLC | 1,146 | | | 79,189 |
| GlaxoSmithKline PLC | 4,418 | | | 102,825 |
| Hikma Pharmaceuticals PLC | 122 | | | 3,838 |
| Shire PLC | 534 | | | 43,780 |
| Smith & Nephew PLC | 814 | | | 13,973 |
| | | | | 243,605 |
| |
| Industrials — 7.3% | | | | |
| Aggreko PLC | 218 | | | 5,531 |
| Ashtead Group PLC | 458 | | | 7,925 |
| Babcock International Group PLC | 456 | | | 7,071 |
| BAE Systems PLC | 2,874 | | | 22,436 |
| Bunzl PLC | 302 | | | 8,535 |
| Capita PLC | 602 | | | 10,583 |
| easyJet PLC | 226 | | | 6,297 |
| Experian PLC | 902 | | | 16,190 |
| G4S PLC | 1,410 | | | 6,349 |
| International Consolidated Airlines Group SA* | 1,666 | | | 13,953 |
| Intertek Group PLC | 146 | | | 5,860 |
| Meggitt PLC | 732 | | | 5,962 |
| Rolls-Royce Holdings PLC* | 1,702 | | | 27,359 |
| Royal Mail PLC | 564 | | | 4,054 |
| Smiths Group PLC | 356 | | | 6,264 |
| Travis Perkins PLC | 224 | | | 7,153 |
| Weir Group PLC (The) | 194 | | | 5,605 |
| Wolseley PLC | 240 | | | 14,281 |
| | | | | 181,408 |
| |
| Information Technology — 1.2% | | | | |
| ARM Holdings PLC | 1,282 | | | 21,947 |
| Sage Group PLC (The) | 978 | | | 7,304 |
| | | | | 29,251 |
| |
| Materials — 8.5% | | | | |
| Anglo American PLC | 1,188 | | | 20,174 |
| Antofagasta PLC | 322 | | | 3,867 |
| BHP Billiton PLC | 1,920 | | | 46,058 |
| CRH PLC | 740 | | | 20,799 |
| Fresnillo PLC | 154 | | | 1,703 |
| Glencore PLC* | 9,700 | | | 46,247 |
| Johnson Matthey PLC | 186 | | | 9,561 |
| Mondi PLC | 334 | | | 6,791 |
| Randgold Resources Ltd. | 84 | | | 6,408 |
| Rio Tinto PLC | 1,134 | | | 50,276 |
| | | | | 211,884 |
The accompanying notes are an integral part of these financial statements.
|
| Portfolio of Investments — Recon Capital FTSE 100 ETF (concluded) |
| April 30, 2015 (Unaudited) |
| Security Description | Shares | | Fair
Value |
| | | | |
| Common Stocks — 99.6% (continued) | | | | |
| | | | | |
| Telecommunication Services — 5.6% | | | | |
| BT Group PLC | 7,606 | | $ | 53,270 |
| Vodafone Group PLC | 24,144 | | | 85,542 |
| | | | | 138,812 |
| |
| Utilities — 4.1% | | | | |
| Centrica PLC | 4,518 | | | 17,732 |
| National Grid PLC | 3,428 | | | 46,305 |
| Severn Trent PLC | 216 | | | 7,054 |
| SSE PLC | 898 | | | 21,349 |
| United Utilities Group PLC | 620 | | | 9,252 |
| | | | | 101,692 |
| TOTAL INVESTMENTS — 99.6% | | | | |
| (Cost $2,492,307) | | | | 2,474,449 |
| Other Assets in Excess of Liabilities — 0.4% | | | | 9,236 |
| | | | | |
| Total Net Assets — 100.0% | | | $ | 2,483,685 |
| * | Non-income producing securities |
PLC Public Limited Company
REIT Real Estate Investment Trust
Sector Allocation
(as of April 30, 2015) | | |
| Financials | 22.6 | % |
| Consumer Staples | 16.1 | |
| Energy | 14.5 | |
| Consumer Discretionary | 9.9 | |
| Health Care | 9.8 | |
| Materials | 8.5 | |
| Industrials | 7.3 | |
| Telecommunication Services | 5.6 | |
| Utilities | 4.1 | |
| Information Technology | 1.2 | |
| Total Investments | 99.6 | |
| Other Assets in Excess of Liabilities | 0.4 | |
| Net Assets | 100.0 | % |
Percentages indicated are based upon net assets.
The Fund’s portfolio composition is subject to change.
The accompanying notes are an integral part of these financial statements.
|
| Portfolio of Investments — Recon Capital NASDAQ 100 Covered Call ETF |
| April 30, 2015 (Unaudited) |
| Security Description | Shares | | Fair
Value |
| | | | |
| Common Stocks — 101.1%† | | | | |
| | | | | |
| Consumer Discretionary — 19.6% | | | | |
| Amazon.com, Inc.* | 1,850 | | $ | 780,293 |
| Bed Bath & Beyond, Inc.* | 741 | | | 52,211 |
| Charter Communications, Inc. Class A* | 437 | | | 81,745 |
| Comcast Corp. Class A | 8,374 | | | 483,682 |
| Comcast Corp. Special Class A | 1,637 | | | 94,275 |
| DIRECTV* | 2,006 | | | 181,954 |
| Discovery Communications, Inc. Class A* | 593 | | | 19,189 |
| Discovery Communications, Inc. Class C* | 1,150 | | | 34,765 |
| DISH Network Corp. Class A* | 889 | | | 60,150 |
| Dollar Tree, Inc.* | 820 | | | 62,656 |
| Garmin Ltd. | 764 | | | 34,525 |
| Liberty Global PLC Class A* | 1,003 | | | 52,296 |
| Liberty Global PLC Series C* | 2,569 | | | 129,606 |
| Liberty Interactive Corp. Class A* | 1,787 | | | 51,394 |
| Liberty Media Corp. Class A* | 419 | | | 16,081 |
| Liberty Media Corp. Class C* | 912 | | | 34,610 |
| Liberty Ventures Series A* | 538 | | | 22,424 |
| Marriott International, Inc. Class A | 1,133 | | | 90,697 |
| Mattel, Inc. | 1,356 | | | 38,185 |
| Netflix, Inc.* | 239 | | | 133,004 |
| O’Reilly Automotive, Inc.* | 404 | | | 88,003 |
| Priceline Group, Inc. (The)* | 208 | | | 257,465 |
| Ross Stores, Inc. | 837 | | | 82,763 |
| Sirius XM Holdings, Inc.* | 21,957 | | | 86,730 |
| Staples, Inc. | 2,560 | | | 41,779 |
| Starbucks Corp. | 5,982 | | | 296,588 |
| Tesla Motors, Inc.* | 499 | | | 112,799 |
| Tractor Supply Co. | 541 | | | 46,558 |
| TripAdvisor, Inc.* | 521 | | | 41,935 |
| Twenty-First Century Fox, Inc. Class A | 4,895 | | | 166,822 |
| Twenty-First Century Fox, Inc. Class B | 3,139 | | | 104,686 |
| Viacom, Inc. Class B | 1,440 | | | 100,008 |
| Wynn Resorts Ltd. | 406 | | | 45,094 |
| | | | | 3,924,972 |
| |
| Consumer Staples — 6.5% | | | | |
| Costco Wholesale Corp. | 1,747 | | | 249,908 |
| Keurig Green Mountain, Inc. | 648 | | | 75,408 |
| Kraft Foods Group, Inc. | 2,351 | | | 199,247 |
| Mondelez International, Inc. Class A | 6,711 | | | 257,501 |
| Monster Beverage Corp.* | 669 | | | 91,727 |
| Walgreens Boots Alliance, Inc. | 4,279 | | | 354,857 |
| Whole Foods Market, Inc. | 1,439 | | | 68,727 |
| | | | | 1,297,375 |
| |
| Health Care — 14.8% | | | | |
| Alexion Pharmaceuticals, Inc.* | 792 | | | 134,030 |
| Amgen, Inc. | 3,039 | | | 479,888 |
| Biogen, Inc.* | 940 | | | 351,494 |
| Catamaran Corp.* | 827 | | | 49,082 |
| Celgene Corp.* | 3,194 | | | 345,144 |
| Cerner Corp.* | 1,362 | | | 97,805 |
| Express Scripts Holding Co.* | 2,934 | | | 253,498 |
| Gilead Sciences, Inc.* | 6,022 | | | 605,271 |
| Henry Schein, Inc.* | 336 | | | 46,066 |
| Illumina, Inc.* | 568 | | | 104,654 |
| Intuitive Surgical, Inc.* | 147 | | | 72,909 |
| Mylan NV* | 1,493 | | | 107,884 |
| Security Description | Shares | | Fair
Value |
| | | | |
| Common Stocks — 101.1% (continued) | | | | |
| | | | | |
| Health Care — 14.8% (continued) | | | | |
| Regeneron Pharmaceuticals, Inc.* | 398 | | $ | 182,069 |
| Vertex Pharmaceuticals, Inc.* | 963 | | | 118,719 |
| | | | | 2,948,513 |
| |
| Industrials — 2.3% | | | | |
| American Airlines Group, Inc. | 2,870 | | | 138,578 |
| CH Robinson Worldwide, Inc. | 585 | | | 37,668 |
| Expeditors International of Washington, Inc. | 771 | | | 35,335 |
| Fastenal Co. | 1,186 | | | 50,547 |
| PACCAR, Inc. | 1,414 | | | 92,405 |
| Stericycle, Inc.* | 338 | | | 45,100 |
| Verisk Analytics, Inc. Class A* | 658 | | | 49,376 |
| | | | | 449,009 |
| |
| Information Technology — 56.8% | | | | |
| Activision Blizzard, Inc. | 2,869 | | | 65,456 |
| Adobe Systems, Inc.* | 1,993 | | | 151,588 |
| Akamai Technologies, Inc.* | 710 | | | 52,384 |
| Altera Corp. | 1,219 | | | 50,808 |
| Analog Devices, Inc. | 1,256 | | | 77,671 |
| Apple, Inc. | 22,994 | | | 2,877,699 |
| Applied Materials, Inc. | 4,873 | | | 96,437 |
| Autodesk, Inc.* | 906 | | | 51,488 |
| Automatic Data Processing, Inc. | 1,923 | | | 162,570 |
| Avago Technologies Ltd. | 1,008 | | | 117,815 |
| Baidu, Inc.*(a) | 1,107 | | | 221,710 |
| Broadcom Corp. Class A | 2,162 | | | 95,571 |
| CA, Inc. | 1,778 | | | 56,487 |
| Check Point Software Technologies Ltd.* | 764 | | | 63,779 |
| Cisco Systems, Inc. | 20,429 | | | 588,968 |
| Citrix Systems, Inc.* | 643 | | | 43,184 |
| Cognizant Technology Solutions Corp. | | | | |
| Class A* | 2,430 | | | 142,252 |
| eBay, Inc.* | 4,960 | | | 288,970 |
| Electronic Arts, Inc.* | 1,242 | | | 72,148 |
| Facebook, Inc. Class A* | 8,880 | | | 699,478 |
| Fiserv, Inc.* | 973 | | | 75,505 |
| Google, Inc. Class A* | 1,094 | | | 600,354 |
| Google, Inc. Class C* | 1,325 | | | 711,975 |
| Intel Corp. | 19,001 | | | 618,483 |
| Intuit, Inc. | 1,140 | | | 114,376 |
| KLA-Tencor Corp. | 658 | | | 38,690 |
| Lam Research Corp. | 634 | | | 47,918 |
| Linear Technology Corp. | 954 | | | 44,008 |
| Micron Technology, Inc.* | 4,288 | | | 120,621 |
| Microsoft Corp. | 32,332 | | | 1,572,628 |
| NetApp, Inc. | 1,244 | | | 45,095 |
| NVIDIA Corp. | 2,173 | | | 48,230 |
| NXP Semiconductor NV* | 922 | | | 88,623 |
| Paychex, Inc. | 1,445 | | | 69,924 |
| QUALCOMM, Inc. | 6,642 | | | 451,656 |
| SanDisk Corp. | 883 | | | 59,108 |
| Seagate Technology PLC | 1,308 | | | 76,806 |
| Symantec Corp. | 2,756 | | | 68,693 |
| Texas Instruments, Inc. | 4,218 | | | 228,658 |
| Western Digital Corp. | 924 | | | 90,312 |
| Xilinx, Inc. | 1,056 | | | 45,788 |
| Yahoo!, Inc.* | 3,778 | | | 160,811 |
| | | | | 11,354,725 |
The accompanying notes are an integral part of these financial statements.
|
| Portfolio of Investments — Recon Capital NASDAQ 100 Covered Call ETF (concluded) |
| April 30, 2015 (Unaudited) |
| Security Description | Shares | | Fair
Value |
| | | | |
| Materials — 0.3% | | | | | |
| Sigma-Aldrich Corp. | 474 | | $ | 65,848 | |
| |
| Telecommunication Services — 0.8% | | | | | |
| SBA Communications Corp. Class A* | 515 | | | 59,647 | |
| VimpelCom Ltd.(a) | 7,010 | | | 39,747 | |
| Vodafone Group PLC(a) | 1,945 | | | 68,464 | |
| | | | | 167,858 | |
| | | | | | |
| TOTAL INVESTMENTS — 101.1% | | | | | |
| (Cost $18,576,727) | | | | 20,208,300 | |
| | | | | | |
| Liabilities in Excess of Other Assets — (1.1)% | | | | (215,895 | ) |
| | | | | | |
| Total Net Assets — 100.0% | | | $ | 19,992,405 | |
| | | | | | |
| | Number | | | | |
| | of | | | | |
| | Contracts | | | | |
| Options Written — (1.8)% | | | | | |
| NDX Call, Expires 5/15/15, Strike Price $4,370 | | | | | |
| (Premiums Received $260,633) | 45 | | $ | (354,825 | ) |
| * | Non-income producing security. |
| † | All or a portion of these securities has been segregated as collateral for written options contracts. The aggregate market value of the collateral posted was $20,543,989. |
| (a) | American Depositary Receipts. |
PLC Public Limited Company
Sector Allocation
(as of April 30, 2015) | | |
| Information Technology | 56.8 | % |
| Consumer Discretionary | 19.6 | |
| Health Care | 14.8 | |
| Consumer Staples | 6.5 | |
| Industrials | 2.3 | |
| Telecommunication Services | 0.8 | |
| Materials | 0.3 | |
| Total Investments | 101.1 | |
| Liabilities in Excess of Other Assets | (1.1 | ) |
| Net Assets | 100.0 | % |
| Percentages indicated are based upon net assets. | | |
| The Fund’s portfolio composition is subject to change. | | |
The accompanying notes are an integral part of these financial statements.
|
| Statements of Assets and Liabilities |
| April 30, 2015 (Unaudited) |
| | Recon Capital
DAX Germany
ETF | | Recon Capital
FTSE 100
ETF | | Recon Capital
NASDAQ 100
Covered Call
ETF |
| Assets: | | | | | | | | | | | |
| Investments, at cost: | $ | 29,451,149 | | | $ | 2,492,307 | | | $ | 18,576,727 | |
| Investments, at fair value (Note 2) | $ | 30,899,006 | | | $ | 2,474,449 | | | $ | 20,208,300 | |
| Cash | | 61,054 | | | | 7,693 | | | | 144,239 | |
| Foreign currency, at value | | 309 | | | | — | | | | — | |
| Receivables: | | | | | | | | | | | |
| Dividends and interest | | — | | | | 1,604 | | | | 4,305 | |
| Total Assets | | 30,960,369 | | | | 2,483,746 | | | | 20,356,844 | |
| |
| Liabilities: | | | | | | | | | | | |
| Payables: | | | | | | | | | | | |
| Accrued Advisory fees | | 6,038 | | | | 61 | | | | 9,614 | |
| Capital shares redeemed | | 150 | | | | — | | | | — | |
| Options written, at value (premiums received $260,633) | | — | | | | — | | | | 354,825 | |
| Total Liabilities | | 6,188 | | | | 61 | | | | 364,439 | |
| Net Assets | $ | 30,954,181 | | | $ | 2,483,685 | | | $ | 19,992,405 | |
| |
| Net Assets Consist of: | | | | | | | | | | | |
| Paid-in capital | $ | 29,355,494 | | | $ | 2,500,000 | | | $ | 20,338,440 | |
| Undistributed (Distributions in excess of) net investment income | | 59,327 | | | | 1,543 | | | | (622,436 | ) |
| Accumulated net realized gain (loss) on investments, options written and foreign | | | | | | | | | | | |
| currency translation | | 91,501 | | | | — | | | | (1,260,980 | ) |
| Net unrealized appreciation (depreciation) on investments, options written and foreign | | | | | | | | | | | |
| currency translation | | 1,447,859 | | | | (17,858 | ) | | | 1,537,381 | |
| Net Assets | $ | 30,954,181 | | | $ | 2,483,685 | | | $ | 19,992,405 | |
| | | | | | | | | | | | |
| Shares outstanding (unlimited number of shares of beneficial interest authorized, | | | | | | | | | | | |
| without par value) | | 1,100,000 | | | | 100,000 | | | | 850,000 | |
| Net asset value, per share | $ | 28.14 | | | $ | 24.84 | | | $ | 23.52 | |
| Foreign currency, at cost | $ | 307 | | | $ | — | | | $ | — | |
The accompanying notes are an integral part of these financial statements.
|
| Statements of Operations |
| For the Period Ended April 30, 2015 (Unaudited) |
| | Recon Capital
DAX Germany
ETF | | Recon Capital
FTSE 100
ETF* | | Recon Capital
NASDAQ 100
Covered Call
ETF |
| Investment Income: | | | | | | | | | | | |
| Dividend income1 | $ | 88,751 | | | $ | 1,604 | | | $ | 102,602 | |
| | | | | | | | | | | | |
| Expenses: | | | | | | | | | | | |
| Advisory fees | | 29,424 | | | | 61 | | | | 45,334 | |
| Net Investment Income | | 59,327 | | | | 1,543 | | | | 57,268 | |
| | | | | | | | | | | | |
| Net Realized and Unrealized Gain (Loss) on: | | | | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | | | |
| Investments | | 15,623 | | | | — | | | | (55,257 | ) |
| Options written | | — | | | | — | | | | (1,172,381 | ) |
| In-kind transactions | | 74,827 | | | | — | | | | 222,816 | |
| Foreign currency transactions | | 1,051 | | | | — | | | | — | |
| Net realized gain (loss) | | 91,501 | | | | — | | | | (1,004,822 | ) |
| | | | | | | | | | | | |
| Net change in unrealized appreciation (depreciation) on: | | | | | | | | | | | |
| Investments | | 1,091,248 | | | | (17,858 | ) | | | 752,526 | |
| Options written | | — | | | | — | | | | 592,449 | |
| Foreign currency translation | | 2 | | | | — | | | | — | |
| Net change in unrealized appreciation (depreciation) | | 1,091,250 | | | | (17,858 | ) | | | 1,344,975 | |
| Net realized and unrealized gain (loss) on investments, options written and | | | | | | | | | | | |
| foreign currency translation | | 1,182,751 | | | | (17,858 | ) | | | 340,153 | |
| Net increase (decrease) in net assets resulting from operations | $ | 1,242,078 | | | $ | (16,315 | ) | | $ | 397,421 | |
| Foreign tax withheld | $ | (30,810 | ) | | | — | | | $ | (27 | ) |
| * | From April 29, 2015 (commencement of operations). |
| 1 | Net of Foreign tax withheld. |
The accompanying notes are an integral part of these financial statements.
|
| Statements of Changes in Net Assets |
| | Recon Capital DAX Germany ETF | | Recon Capital
FTSE 100 ETF | | Recon Capital NASDAQ 100
Covered Call ETF |
| | For the
Six Months
Ended
April 30, 2015
(Unaudited) | | For the Period
October 23, 2014*
Through
October 31, 2014 | | For the Period
April 29, 2015*
Through
April 30, 2015
(Unaudited) | | For the
Six Months
Ended
April 30, 2015
(Unaudited) | | For the Period
December 12, 2013*
Through
October 31, 2014 |
| Investment Operations: | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | $ | 59,327 | | | | $ | (1,401 | ) | | $ | 1,543 | | | $ | 57,268 | | | | $ | 34,930 | |
| Net realized gain (loss) on investments, options | | | | | | | | | | | | | | | | | | | | | |
| written and foreign currency translation | | 91,501 | | | | | — | | | | — | | | | (1,004,822 | ) | | | | (256,158 | ) |
| Net change in unrealized appreciation (depreciation) | | | | | | | | | | | | | | | | | | | | | |
| on investments, options written and foreign | | | | | | | | | | | | | | | | | | | | | |
| currency translation | | 1,091,250 | | | | | 356,609 | | | | (17,858 | ) | | | 1,344,975 | | | | | 192,406 | |
| Net increase (decrease) in net assets resulting | | | | | | | | | | | | | | | | | | | | | |
| from operations | | 1,242,078 | | | | | 355,208 | | | | (16,315 | ) | | | 397,421 | | | | | (28,822 | ) |
| |
| Distributions to Shareholders from: | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | — | | | | | — | | | | — | | | | (679,704 | ) | | | | (34,930 | ) |
| Return of capital | | — | | | | | — | | | | — | | | | — | | | | | (482,211 | ) |
| Total distributions | | — | | | | | — | | | | — | | | | (679,704 | ) | | | | (517,141 | ) |
| |
| Shareholder Transactions: | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | 18,162,274 | | | | | 12,510,934 | | | | 2,500,000 | | | | 9,458,540 | | | | | 16,304,239 | |
| Cost of shares redeemed | | (1,316,313 | ) | | | | — | | | | — | | | | (1,205,507 | ) | | | | (3,736,621 | ) |
| Net increase in net assets resulting from | | | | | | | | | | | | | | | | | | | | | |
| shareholder transactions | | 16,845,961 | | | | | 12,510,934 | | | | 2,500,000 | | | | 8,253,033 | | | | | 12,567,618 | |
| Net increase in net assets | | 18,088,039 | | | | | 12,866,142 | | | | 2,483,685 | | | | 7,970,750 | | | | | 12,021,655 | |
| |
| Net Assets: | | | | | | | | | | | | | | | | | | | | | |
| Beginning of period | | 12,866,142 | | | | | — | | | | — | | | | 12,021,655 | | | | | — | |
| End of period | $ | 30,954,181 | | | | $ | 12,866,142 | | | $ | 2,483,685 | | | $ | 19,992,405 | | | $ | 12,021,655 | |
| Including undistributed (distribution in excess of) | | | | | | | | | | | | | | | | | | | | | |
| net investment income | $ | 59,327 | | | | $ | — | | | $ | 1,543 | | | $ | (622,436 | ) | | | $ | — | |
| |
| Changes in Shares Outstanding: | | | | | | | | | | | | | | | | | | | | | |
| Shares outstanding, beginning of period | | 500,000 | | | | | — | | | | — | | | | 500,000 | | | | | — | |
| Shares sold | | 650,000 | | | | | 500,000 | | | | 100,000 | | | | 400,000 | | | | | 650,000 | |
| Shares redeemed | | (50,000 | ) | | | | — | | | | — | | | | (50,000 | ) | | | | (150,000 | ) |
| Shares outstanding, end of period | | 1,100,000 | | | | | 500,000 | | | | 100,000 | | | | 850,000 | | | | | 500,000 | |
| * | Commencement of operations. |
The accompanying notes are an integral part of these financial statements.
|
| Financial Highlights — Recon Capital DAX Germany ETF |
| | For the
Six Months Ended
April 30, 2015
(Unaudited) | | For the Period
October 23, 20141
Through
October 31, 2014 |
| For a Share Outstanding Throughout the Periods Presented: | | | | | | | |
| Net asset value, beginning of period | $ | 25.73 | | | $ | 25.00 | |
| |
| Investment operations: | | | | | | | |
| Net investment income (loss)2 | | 0.12 | | | | — | 3 |
| Net realized and unrealized gain on investments and foreign currency translation | | 2.29 | | | | 0.73 | |
| Total from investment operations | | 2.41 | | | | 0.73 | |
| Net asset value, end of period | $ | 28.14 | | | $ | 25.73 | |
| |
| Total Return4 | | 9.37 | % | | | 2.92 | % |
| | | | | | | | |
| Ratios/Supplemental Data: | | | | | | | |
| Net assets, end of period (000’s omitted) | $ | 30,954 | | | $ | 12,866 | |
| |
| Ratios to average net assets: | | | | | | | |
| Expenses | | 0.45 | %5 | | | 0.45 | %5 |
| Net investment income (loss) | | 0.91 | %5 | | | (0.45 | )%5 |
| Portfolio turnover rate6 | | 2 | %7 | | | 0 | %7 |
| 1 | Commencement of operations. |
| 2 | Based on average shares outstanding. |
| 3 | Amount is less than $(0.005). |
| 4 | Total return is calculated assuming an initial investment made at the net asset value on the first day of the period, reinvestment of dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. |
| 6 | Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund’s capital shares. |
The accompanying notes are an integral part of these financial statements.
|
| Financial Highlights — Recon Capital FTSE 100 ETF |
| | For the Period
April 29, 20151
Through
April 30, 2015
(Unaudited) |
| For a Share Outstanding Throughout the Period Presented: | | | |
| Net asset value, beginning of period | $ | 25.00 | |
| Investment operations: | | | |
| Net investment income2 | | 0.02 | |
| Net realized and unrealized loss on investments | | (0.18 | ) |
| Total from investment operations | | (0.16 | ) |
| Net asset value, end of period | $ | 24.84 | |
| |
| Total Return3 | | (0.64 | )% |
| | | | |
| Ratios/Supplemental Data: | | | |
| Net assets, end of period (000’s omitted) | $ | 2,484 | |
| Ratios to average net assets: | | | |
| Expenses | | 0.45 | %4 |
| Net investment income | | 11.28 | %4 |
| Portfolio turnover rate5 | | 0 | % |
| 1 | Commencement of operations. |
| 2 | Based on average shares outstanding. |
| 3 | Total return is calculated assuming an initial investment made at the net asset value on the first day of the period, reinvestment of dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. |
| 5 | Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund’s capital shares. |
The accompanying notes are an integral part of these financial statements.
|
| Financial Highlights — Recon Capital NASDAQ 100 Covered Call ETF |
| | For the
Six Months Ended
April 30, 2015
(Unaudited) | | For the Period
December 12, 20131
Through
October 31, 2014 |
| For a Share Outstanding Throughout the Periods Presented: | | | | | | | |
| Net asset value, beginning of period | $ | 24.04 | | | $ | 25.00 | |
| Investment operations: | | | | | | | |
| Net investment income2 | | 0.09 | | | | 0.16 | |
| Net realized and unrealized gain on investments and options written | | 0.44 | | | | 1.11 | 7 |
| Total from investment operations | | 0.53 | | | | 1.27 | |
| | | | | | | | |
| Distributions to Shareholders from: | | | | | | | |
| Net investment income | | (1.05 | ) | | | (0.35 | ) |
| Return of capital | | — | | | | (1.88 | ) |
| Total distribution to shareholders | | (1.05 | ) | | | (2.23 | ) |
| Net asset value, end of period | $ | 23.52 | | | $ | 24.04 | |
| | | | | | | | |
| Total Return3 | | 2.25 | % | | | 5.11 | % |
| Net assets, end of period (000’s omitted) | $ | 19,992 | | | $ | 12,022 | |
| | | | | | | | |
| Ratios/Supplemental Data: | | | | | | | |
| Ratios to average net assets: | | | | | | | |
| Expenses | | 0.60 | %4 | | | 0.60 | %4 |
| Net investment income | | 0.76 | %4 | | | 0.74 | %4 |
| Portfolio turnover rate5 | | 9 | %6 | | | 18 | %6 |
| 1 | Commencement of operations. |
| 2 | Based on average shares outstanding. |
| 3 | Total return is calculated assuming an initial investment made at the net asset value on the first day of the period, reinvestment of dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. |
| 5 | Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund’s capital shares. |
| 7 | The amount of realized and unrealized gain on investments and options written per share does not accord with the amounts reported in the Statements of Operations due to fluctuating market values in relation to the timing of creation and redemption of the Fund shares. |
The accompanying notes are an integral part of these financial statements.
|
| Notes to Financial Statements |
| April 30, 2015 (Unaudited) |
1. ORGANIZATION
Recon Capital Series Trust, formerly ETF Series Trust (the “Trust”) was organized as a Delaware statutory trust on May 17, 2012 and is currently comprised of three investment portfolios. These financial statements relate to the Recon Capital NASDAQ 100 Covered Call ETF, Recon Capital DAX Germany ETF and Recon Capital FTSE 100 ETF and (each a “Fund” and collectively, “Funds”), are series of the Trust. The Funds are classified as non-diversified, open-end, management investment companies under the Investment Company Act of 1940, as amended (“1940 Act”). The Funds commenced operations on December 12, 2013, October 23, 2014 and April 29, 2015 respectively.
Recon Capital NASDAQ 100 Covered Call ETF investment objective is to provide investment results that will closely correspond, before fees and expenses, generally to the price and yield performance of the CBOE NASDAQ-100® Buy Write Index (the “Buy Write Index”). The Buy Write Index measures the total return of a portfolio consisting of common stocks of the 100 companies included in the NASDAQ-100® Index and call options systematically written on those securities through a “buy-write” or covered call strategy. A “buy-write” strategy is an investment strategy in which the Fund buys a specific basket of stocks (such as the NASDAQ-100® Index) and sells covered call options that correspond to that basket of stocks.
Recon Capital DAX Germany ETF seeks to provide investment results using a passive or indexing investment approach that will closely correspond, before fees and expenses, generally to the price and yield performance of the DAX® Index (“DAX® Index”). The DAX® Index tracks the segment of the largest and most actively traded companies — known as blue chips — on the German equities market. It contains the shares of the 30 largest German companies in terms of liquidity and market capitalization admitted to the Frankfurt Stock Exchange in the Prime Standard segment. The 30 stocks contained in the Index represents about 80% of the market capitalization listed in Germany.
The Recon Capital FTSE 100 ETF seeks to provide investment results that will closely correspond, before fees and expenses, generally to the price and yield performance of the FTSE 100 Index (“FTSE Index”). The Index is a free-float adjusted, market capitalization-weighted index, consisting of the common stock of the 100 companies listed on the London Stock Exchange with the highest market capitalization.
2. SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
These financial statements are prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of increases and decreases in the net assets from operations during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Funds:
Securities Valuation
Security holdings traded on a national securities exchange are valued based on their last sale price. Price information on listed securities is taken from the exchange where the security is primarily traded. Securities regularly traded in an over the counter market are valued at the latest quoted sale price in such market or in the case of the NASDAQ, at the NASDAQ Official Closing Price. If market quotations are not readily available, or if it is determined that a quotation of a security does not represent fair value, then the security is valued at fair value as determined in good faith using procedures adopted by the Trust’s Board of Trustees (the “Board”). Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates current market value.
Purchased and written options contracts listed on exchanges are valued at their reported mean of bid and ask quotations; over-the-counter derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees of the Trust.
Fair Value Measurement
GAAP requires disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category.
The Funds categorize their fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Funds’ assumptions about the information market participants would use
|
| Notes to Financial Statements (continued) |
| April 30, 2015 (Unaudited) |
in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| • | Level 1 — Valuations based on quoted prices for identical investments in active markets that the Funds have the ability to access at the measurements date (including NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments. |
| • | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risks, etc.). |
| • | Level 3 — Valuations based on significant unobservable inputs (including the Funds’ own assumptions and judgment in determining the fair value of investments). |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following summarizes inputs used as of April 30, 2015 in valuing the Funds’ assets and liabilities carried at fair value:
| | Level 1 | | Level 2 | | Level 3 | | Total |
| Recon Capital DAX Germany ETF | | | | | | | | | | | | | | | |
| Assets† | | | | | | | | | | | | | | | |
| Common Stocks | $ | 29,090,879 | | | $ | — | | | $ | — | | | $ | 29,090,879 | |
| Preferred Stocks | | 1,808,127 | | | | — | | | | — | | | | 1,808,127 | |
| Total | $ | 30,899,006 | | | $ | — | | | $ | — | | | $ | 30,899,006 | |
| Recon Capital FTSE 100 ETF | | | | | | | | | | | | | | | |
| Assets† | | | | | | | | | | | | | | | |
| Common Stocks | $ | 2,474,449 | | | $ | — | | | $ | — | | | $ | 2,474,449 | |
| Total | $ | 2,474,449 | | | $ | — | | | $ | — | | | $ | 2,474,449 | |
| Recon Capital NASDAQ 100 Covered Call ETF | | | | | | | | | | | | | | | |
| Assets† | | | | | | | | | | | | | | | |
| Common Stocks | $ | 20,208,300 | | | $ | — | | | $ | — | | | $ | 20,208,300 | |
| | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | |
| Other Financial Instruments* | | — | | | | (354,825 | ) | | | — | | | | (354,825 | ) |
| Total | $ | 20,208,300 | | | $ | (354,825 | ) | | $ | — | | | $ | 19,853,475 | |
| † | See the Portfolio of Investments for breakdown by sector. |
| * | Other financial instruments include written option contracts. Purchased and written options contracts listed on |
Exchanges are valued at their reported mean of bid and ask quotations; over the-counter derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees of the Trust.
For significant movements between levels within the fair value hierarchy, the Funds have adopted a policy of recognizing the transfers as of the date of the underlying event which caused the movement. There were no transfers between levels during the period.
A reconciliation of assets in which Level 3 inputs are used in determining fair value is presented when there are significant Level 3 investments at the end of the period. There were no transfers between levels during the period.
Indemnification
In the normal course of business, the Funds may enter into contracts that contain a variety of representations which provide general indemnifications for certain liabilities. Each Fund’s maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Cash and Cash Equivalents
Cash and cash equivalents include funds from time to time deposited with financial institutions and short-term, liquid investments in a money market fund. Cash and cash equivalents are carried at cost which approximates fair value.
|
| Notes to Financial Statements (continued) |
| April 30, 2015 (Unaudited) |
Concentration of Risk
The Funds place cash and cash equivalents with financial institutions and, at times, cash held in money market accounts may exceed the Federal Deposit Insurance Corporation insured limit.
Investment Valuation
The Net Asset Value (“NAV”) is determined as of the close of trading (generally, 4:00 PM Eastern Time) on each day the New York Stock Exchange (“NYSE”) is open for trading. NAV per share is calculated by dividing each Fund’s net assets by the number of fund shares outstanding.
Security Transactions
Security transactions are accounted for on the trade date. Realized gains and losses on sales of investment securities are calculated using the specific identification.
Investment Income and Expenses
Dividend income is recognized on the ex-dividend date. The Funds distribute all or substantially all of their net investment income to shareholders in the form of dividends. Expenses are recognized on the accrual basis.
3. INVESTMENT MANAGEMENT AND OTHER AGREEMENTS
Investment Advisory and Supervisory Agreement
The Trust has entered into an Investment Advisory Agreement (the “Advisory Agreement”) and Supervisory Agreement (the “Supervisory Agreement”) with the Adviser, on behalf of the Funds. Pursuant to the Supervisory Agreement, the Adviser has overall supervisory responsibility for the general management and investment of the Fund’s securities portfolio. The Adviser is a wholly-owned subsidiary of Recon Capital Partners, LLC, a Delaware limited liability corporation established in 2011 that serves as investment adviser to high net worth individuals through separately managed accounts and private funds. For its services, the Funds pay the Adviser an annual rate of 0.45%, 0.45% and 0.60% respectively of each Fund’s average daily net assets. Such fee, an all-in fee, is accrued daily and paid monthly. It pays for substantially all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit, printing and certain administrative, distribution and investment advisory services. The advisory fees paid for the period ended April 30, 2015 were $29,424, $61 and $45,334 respectively.
Distribution Agreement
Foreside Fund Services, LLC (the “Distributor”) serves as the Funds’ Distributor. The Distributor will not distribute shares in less than Creation Units, as defined in Note 4, and does not maintain a secondary market in shares. The shares are expected to be traded in the secondary market.
The Board has adopted a distribution and service plan, where the Funds are authorized to pay distribution fees in connection with the sale and distribution of its shares and pay service fees in connection with the provision of ongoing services to shareholders. No distribution fees are currently paid by the Funds and there are no current plans to impose the fees.
Administrator, Custodian, Accounting Agent and Transfer Agent
The Bank of New York Mellon (in each capacity, the “Administrator”, “Custodian,” “Accounting Agent” or “Transfer Agent”) serves as the Funds’ Administrator, Custodian, Accounting Agent and Transfer Agent pursuant to the Fund Administration and Accounting Agreement. The Bank of New York Mellon is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
4. CREATION AND REDEMPTION TRANSACTIONS
The Funds issue and redeem shares on a continuous basis at NAV in groups of 50,000 shares called “Creation Units.” Creation Units of the Funds are issued and redeemed generally in exchange for specified securities held by the Funds generally included in the Index and a specified cash payment. The Trust reserves the right to permit or require a “cash” option for creations and redemptions of shares. In each instance of such cash creations or redemptions, the Trust may impose transaction fees based on transaction expenses related to the particular exchange that will be higher than the transaction fees associated with in-kind purchase or redemptions.
Only “Authorized Participants” who have entered into contractual arrangements with the Distributor may purchase or redeem shares directly from the Funds. 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 Depository Trust Company (“DTC”) participant and, in each case, must have executed a Participant Agreement with the Distributor.
|
| Notes to Financial Statements (continued) |
| April 30, 2015 (Unaudited) |
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 Funds. Rather, most retail investors will purchase shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees.
5. FEDERAL INCOME TAX
The Funds intend to qualify as regulated investment companies by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, by distributing substantially all of its net investment income and net realized gains to shareholders. Dividends and/or distributions, if any, are paid to shareholders invested in the Funds on the applicable record date, at least annually. Net realized capital gains, if any, will be distributed by the Funds at least annually. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with Federal income tax regulations which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the components of net assets based on their Federal tax basis treatment; temporary differences do not require reclassification.
Management evaluates tax positions taken or expected to be taken in the course of preparing the Funds’ 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-likely-than-not threshold would be recorded as an expense in the current year. The Funds are required to analyze all open tax years. Open tax years are those years that are open for examination by the relevant income taxing authority. As of April 30, 2015, the Funds’ open tax year is open for examination.
At April 30, 2015, the cost of investments on a tax basis was as follows:
| Funds | | Cost | | Gross
Unrealized
Appreciation | | Gross
Unrealized
Depreciation | | Net Unrealized
Appreciation
(Depreciation) |
| Recon Capital DAX Germany ETF | | $ | 29,451,149 | | | $ | 1,550,838 | | | $ | (102,981 | ) | | $ | 1,447,857 | |
| Recon Capital FTSE 100 ETF | | | 2,492,307 | | | | 7,110 | | | | (24,968 | ) | | | (17,858 | ) |
| Recon Capital NASDAQ 100 Covered Call ETF | | | 18,576,727 | | | | 1,889,972 | | | | (258,399 | ) | | | 1,631,573 | |
There were no differences between book and tax basis cost of investments and unrealized appreciation (depreciation) at April 30, 2015.
6. INVESTMENT TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions) for the period ended April 30, 2015 were:
| | Purchases | | Sales |
| Recon Capital DAX Germany ETF | $ | 1,633,369 | | | $ | 287,270 | |
| Recon Capital FTSE 100 ETF | | — | | | | — | |
| Recon Capital NASDAQ 100 Covered Call ETF | | 1,322,711 | | | | 3,455,345 | |
Purchases and sales of in-kind transactions for the period ended April 30, 2015 were:
| | Purchases | | Sales |
| Recon Capital DAX Germany ETF | $ | 18,161,325 | | | $ | 1,316,155 | |
| Recon Capital FTSE 100 ETF | | 2,492,307 | | | | — | |
| Recon Capital NASDAQ 100 Covered Call ETF | | 9,670,419 | | | | 1,212,105 | |
7. DERIVATIVE FINANCIAL INSTRUMENTS
Options
Transactions in options written during the period ended April 30, 2015 were as follows:
| | Notional
Amount | | Premiums
Received |
| Recon Capital NASDAQ 100 Covered Call ETF | | | | | | | |
| Options outstanding, at beginning of the period | $ | 30 | | | $ | 287,609 | |
| Options written | | 239 | | | | 1,665,887 | |
| Options closed | | (116 | ) | | | (1,076,078 | ) |
| Options expired | | (108 | ) | | | (616,785 | ) |
| Options outstanding, at end of the period | $ | 45 | | | $ | 260,633 | |
|
| Notes to Financial Statements (continued) |
| April 30, 2015 (Unaudited) |
Recon Capital NASDAQ 100 Covered Call ETF may write covered call and put options on portfolios securities and other financial instruments. Premiums received are recorded as liabilities. The liabilities are subsequently adjusted to reflect the current value of the options written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or are closed are added to or offset against the proceeds or amount paid on the transactions to determine the net realized gain or loss. By writing a covered call option, Recon Capital NASDAQ 100 Covered Call ETF, in exchange for the premium, foregoes the opportunity for capital appreciation above the exercise price should the market of the price of the underlying security increase. By writing a put option, the Recon Capital NASDAQ 100 Covered Call ETF, in exchange for the premium, accepts the risk of having to purchase a security at an exercise price that is above the current price. When the written option expires, is terminated or is sold, the Recon Capital NASDAQ 100 Covered Call ETF will record a gain or loss.
Recon Capital NASDAQ 100 Covered Call ETF may purchase call and put options on the portfolio securities or other financial instruments. The Recon Capital NASDAQ 100 Covered Call ETF may purchase call options to protect against an increase in the price of the security or financial instrument it anticipates purchasing. The Recon Capital NASDAQ 100 Covered Call ETF may purchase put options on securities which it holds or other financial instruments to protect against a decline in the value of the security or financial instrument or to close out covered written positions. When the purchased option expires, is terminated or is sold, the Recon Capital NASDAQ 100 Covered Call ETF will record a gain or loss.
Risks may arise from an imperfect correlation between the change in market value of the securities held by the Recon Capital NASDAQ 100 Covered Call ETF and the prices of options relating to the securities purchased or sold by the Recon Capital NASDAQ 100 Covered Call ETF and from possible lack of liquid secondary market for an option. The maximum exposure to loss for any purchased option is limited to the premium initially paid for the option. Written uncovered call options subject the Recon Capital NASDAQ 100 Covered Call ETF to unlimited risk of loss. Written covered call options limit the upside potential of a security above the strike price. Put options written subject the Recon Capital NASDAQ 100 Covered Call ETF to risk of loss if the value of the security declines below the exercise price minus the put premium.
Transactions in derivative instruments reflected on the Statements of Assets and Liabilities at April 30, 2015, are:
Recon Capital NASDAQ 100 Covered Call ETF
| | Equity Risk |
| Liabilities | | | |
| Options written, at value | $ | (354,825 | ) |
| Total Liabilities | $ | (354,825 | ) |
Transactions in derivative instruments reflected on the Statements of Operations during the period were as follows:
Recon Capital NASDAQ 100 Covered Call ETF
| | Equity Risk |
| Net Realized Loss | | | |
| Options written | $ | (1,172,381 | ) |
| Net realized loss | $ | (1,172,381 | ) |
Recon Capital NASDAQ 100 Covered Call ETF
| | Equity Risk |
| Change in Unrealized Appreciation | | | |
| Options written | $ | 592,449 | |
| Net unrealized appreciation | $ | 592,449 | |
For the period ended April 30, 2015, the monthly average notional value of the written options contracts held by the Recon Capital NASDAQ 100 Covered Call ETF was $219,196.
8. INVESTMENT RISKS
Each Fund is subject to the principal risks described below, some or all of these risks may adversely affect each Fund’s NAV, yield, total return and ability to meet its investment objective. As with any investment, an investment in the Funds could result in a loss or the performance of the Funds could be inferior to that of other investments.
Risks Related to Investing in Germany (Recon Capital DAX Germany ETF)
Germany is a significant exporter to its major trading partners, which are other Western European developed nations and the United States. Therefore, Germany’s economy is dependent on the economies of these other countries. As such, reductions by these countries
|
| Notes to Financial Statements (continued) |
| April 30, 2015 (Unaudited) |
in spending on German exports could adversely impact the German economy. Many of these Western European developed nations, including Germany, are member states of the EU and Economic and EMU. As a result, these member states are dependent upon one another economically and politically.
During the most recent financial crisis, the German economy, along with certain other EU economies, experienced a significant economic slowdown. Recently, new concerns emerged in relation to the economic health of the EU. These concerns have led to tremendous downward pressure on certain financial institutions, including German financial services companies. During the recent European debt crisis, Germany played a key role in stabilizing the euro. However, such efforts may prove unsuccessful, and any ongoing crisis may continue to significantly affect the economies of every country in Europe, including Germany.
The Recon Capital DAX Germany ETF investment in German issuers subjects the Fund to legal, regulatory, political, currency, security, and economic risks specific to Germany. The German economy, along with certain other EU economies, experienced a significant economic slowdown during the recent financial crisis.
Risks Related to Investing in the United Kingdom. (Recon Capital FTSE 100 ETF)
Investments in British issuers may subject the Fund to regulatory, political, currency, security, and economic risk specific to the United Kingdom. The United Kingdom has one of the largest economies in Europe, and the United States and other European countries are substantial trading partners of the United Kingdom. As a result, the British economy may be impacted by changes to the economic condition of the United States and other European countries. The British economy, along with certain other European EU economies, experienced a significant economic slowdown during the recent financial crisis; certain British financial institutions suffered significant losses, were severely under-capitalized and required government intervention to survive.
Structural Risk
Germany is subject to risks of social unrest and heavy governmental control, either of which may adversely affect investments in Germany
Heavy Governmental Control and Regulation
Heavy regulation of labor and product markets is pervasive in Germany. These regulations may at times stifle German economic growth or cause prolonged periods of recession.
Equity Risk
The Funds invest in equity securities. Equity risk is the risk that the value of the securities that the Funds hold will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities the Funds hold participate or factors relating to specific companies in which the Fund invest.
Index Tracking Risk
While the Funds seek to achieve a high degree of correlation with the Index, each Fund’s return may not match the return of the Index due to, among other reasons, operating expenses, transaction costs, cash flows, and operational inefficiencies. For example, a Fund incurs operating expenses not applicable to the Index and incurs costs when buying and selling securities, particularly where the Fund must rebalance its securities holdings to reflect changes in the composition of the Index. Because these and other costs are not factored into the return of the Index, the Fund’s return may deviate significantly from the return of the Index.
The Recon Capital NASDAQ 100 Covered Call ETF may be unable to write options at the times or at the prices that the Index expects such options to be written. Because these and other costs are not factored into the return of the Index, the Fund’s return may deviate significantly from the return of the Index.
Counterparty Risk
The Recon Capital NASDAQ 100 Covered Call ETF is exposed to counterparty risk, or the risk that an institution or other entity with which the Fund has unsettled or open transactions will default. The potential loss to the Fund could exceed the value of the financial assets recorded in the Fund’s financial statements. Financial assets, which potentially expose the Fund to counterparty risk, consist principally of cash due from counterparties and investments. The Adviser seeks to minimize the Fund’s counterparty risk by performing reviews of each counterparty and by minimizing concentration of counterparty risk by undertaking transactions with multiple customers and counterparties on recognized and reputable exchanges. Delivery of securities sold is only made once the Fund has received payment. Payment is made on a purchase once the securities have been delivered by the counterparty. The trade will fail if either party fails to meet its obligation.
|
| Notes to Financial Statements (continued) |
| April 30, 2015 (Unaudited) |
Political and Social Risk
Certain sectors and regions of Germany have experienced high unemployment and labor and social unrest. These issues may cause downturns in the German markets or the German industries or sectors in which the Fund invests.
Currency Risk
Because the Funds NAV are determined in U.S. dollars, each Fund’s NAV could decline if the currency of a non-U.S. market in which the Fund invests depreciates against the U.S. dollar. Currency exchange rates can be very volatile and can change quickly and unpredictably. Therefore, the value of an investment in the Funds may also go up or down quickly and unpredictably and investors may lose money.
Non-U.S. Securities Risk
Investments in the securities of non-U.S. issuers are subject to the risks of investing in the markets where such issuers are located, including heightened risks of inflation or nationalization and market fluctuations caused by economic and political developments.
Passive Management Risk
Because the Funds are not “actively” managed, unless a security is removed from an Index, the Funds generally would not sell the security. Therefore, the Funds may underperform funds that actively shift their portfolio assets to take advantage of market opportunities or to move to defensive positions to lessen the impact of a market decline or a decline in the value of one or more issuers.
Non-Diversified Risk
The Funds are non-diversified and can invest a greater portion of its assets in securities of individual issuers than diversified funds. As a result, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund. This may increase the Funds’ volatility and cause the performance of a relatively small number of issuers to have a greater impact on the Funds’ performance
Because the Funds are non-diversified under the 1940 Act and may invest in a smaller number of issuers or a larger proportion of its assets may be invested in a single issuer, the gains and losses on a single investment may have a greater impact on the Fund’s NAV and may make the Fund more volatile than more diversified funds.
New Fund Risk
The Recon Capital DAX Germany ETF and Recon Capital FTSE 100 ETF are new funds. As a new funds, there can be no assurance that the Funds will grow to or maintain economically viable sizes, in which case the Funds may experience greater tracking error to its Underlying Index than it otherwise would be at higher asset levels or it could ultimately liquidate.
9. SUBSEQUENT EVENTS
The Funds have evaluated subsequent events through the date of issuance of this report and has determined that there are no other material events that would require disclosure.
|
| Supplemental Information |
| April 30, 2015 (Unaudited) |
INFORMATION ABOUT PORTFOLIO HOLDINGS
The Funds file complete schedules of portfolio holdings for their first and third fiscal quarters with the Securities and Exchange Commission (“SEC”) on Form N-Q. The Funds’ Form N-Q is available without charge, upon request, by calling toll-free at (877) 756-7873. Furthermore, you may obtain the Form N-Q on the SEC’s website at www.sec.gov. The Fund’s portfolio holdings are posted on the Fund’s website at www.reconfunds.com daily.
INFORMATION ABOUT PROXY VOTING
A description of the policies and procedures the Funds use to determine how to vote proxies relating to portfolio securities is provided in the Statement of Additional Information (“SAI”). The SAI is available without charge upon request by calling toll-free at (877) 756-7873, by accessing the SEC’s website at www.sec.gov, or by accessing the Fund’s website at www.reconfunds.com.
Information regarding how the Funds voted proxies relating to portfolio securities during the period ended October 31 is available by calling toll-free at (877) 756-7873 or by accessing the SEC’s website at www.sec.gov.
PRIVACY POLICY
The Funds collect non-public information about you from the following sources:
| • | Information we receive about you on applications or other forms; |
| • | Information you give us orally; and |
| • | Information about your transactions with us or others. |
The Funds do not disclose any non-public personal information about its customers or former customers without the customer’s authorization, except as permitted by law or in response to inquiries from governmental authorities. The Funds may share information with affiliated parties and unaffiliated third parties with whom we have contracts for servicing the Funds. The Funds will provide unaffiliated third parties with only the information necessary to carry out their assigned responsibility. The Funds maintain physical, electronic and procedural safeguards to guard your non-public personal information and require third parties to treat your non-public information with the same high degree of confidentially.
In the event that you hold shares of the Funds through a financial intermediary, including, but not limited to, a broker-dealer, bank, or trust company, the privacy policy of your financial intermediary would govern how your nonpublic personal information would be shared by those entities with unaffiliated third parties.
|
| Supplemental Information |
| April 30, 2015 (Unaudited) |
Frequency Distribution of Premiums and Discounts (unaudited)
The table that follows presents information about the differences between the daily market price on secondary markets for shares of a Fund and that Fund’s net asset value. Net asset value, or “NAV”, is the price per share at which the Fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing fund shares. The “Market Price” of the Fund generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. The Fund’s Market Price may be at, above or below its NAV. The NAV of the Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of the Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.
Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of each Fund on a given day, generally at the time NAV is calculated. A premium is the amount that the Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that the Fund is trading below the reported NAV, expressed as a percentage of the NAV. The following information shows the frequency distributions of premiums and discounts for the each Fund.
The information shown for the Funds are for the six months or period ended April 30, 2015.
Each line in the table shows the number of trading days in which each Fund traded within the premium/discount range indicated. The number of trading days in the premium/discount range is also shown as a percentage of the total number of trading days in the period covered by the table. All data presented here represents past performance, which cannot be used to predict future results.
| | | | | Market Price
Above or Equal to NAV | | Market Price
Below NAV |
| Funds | | Basis Point
Differential | | Number
of Days | | % of
Total Days | | Number
of Days | | % of
Total Days |
| Recon Capital DAX Germany ETF | | | | | | | | | | | | | | |
| October 22, 2014 – April 30, 2015 | | 0 – 49.9 | | 63 | | | 48.09 | % | | 37 | | | 28.24 | % |
| | | 50 – 99.9 | | 10 | | | 7.63 | % | | 13 | | | 9.92 | % |
| | | 100 – 199.9 | | 4 | | | 3.05 | % | | 1 | | | 0.76 | % |
| | | > 200 | | 3 | | | 2.29 | % | | 0 | | | 0.00 | % |
| | | Total | | 80 | | | 61.06 | % | | 51 | | | 38.92 | % |
| |
| Recon Capital FTSE 100 ETF | | | | | | | | | | | | | | |
| April 29, 2015 – April 30, 2015 | | 0 – 49.9 | | 2 | | | 66.67 | % | | 0 | | | 0.00 | % |
| | | 50 – 99.9 | | 1 | | | 33.33 | % | | 0 | | | 0.00 | % |
| | | 100 – 199.9 | | 0 | | | 0.00 | % | | 0 | | | 0.00 | % |
| | | > 200 | | 0 | | | 0.00 | % | | 0 | | | 0.00 | % |
| | | Total | | 3 | | | 100.00 | % | | 0 | | | 0.00 | % |
| |
| Recon Capital NASDAQ 100 Covered Call ETF | | | | | | | | | | | | | | |
| December 11, 2013 – April 30, 2015 | | 0 – 49.9 | | 212 | | | 60.92 | % | | 100 | | | 28.74 | % |
| | | 50 – 99.9 | | 25 | | | 7.18 | % | | 3 | | | 0.86 | % |
| | | 100 – 199.9 | | 8 | | | 2.30 | % | | 0 | | | 0.00 | % |
| | | > 200 | | 0 | | | 0.00 | % | | 0 | | | 0.00 | % |
| | | Total | | 245 | | | 70.40 | % | | 103 | | | 29.60 | % |
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reports.
Item 6. Investments.
| (a) | Portfolio 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. |
| Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
| Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of trustees.
Item 11. Controls and Procedures.
| (a) | The registrant’s President and Chief Financial Officer has 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))), provide reasonable assurances that material information relating to the registrant is made known to him by the appropriate persons, based on his evaluation of these controls and procedures as of a date within 90 days of the filing date of this report. |
| (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)(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 to open-end investment companies. |
| (b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| (Registrant) | Recon Capital Series Trust, formerly known as ETF Series Trust |
| By (Signature and Title)* | /s/ Garrett Paolella |
| | Garrett Paolella |
| | President/Chief Executive Officer |
| | (principal executive officer) |
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/ Garrett Paolella |
| | Garrett Paolella |
| | President/Chief Executive Officer and |
| | Treasurer/Chief Financial Officer |
| | (principal executive officer and principal financial officer) |
* Print the name and title of each signing officer under his or her signature.
