UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-23024
Pacer Funds Trust
(Exact name of registrant as specified in charter)
(Exact name of registrant as specified in charter)
16 Industrial Boulevard, Suite 201
Paoli, PA 19301
(Address of principal executive offices) (Zip code)
(Address of principal executive offices) (Zip code)
Joe M. Thomson, President
16 Industrial Boulevard, Suite 201
Paoli, PA 19301
(Name and address of agent for service)
(Name and address of agent for service)
610-644-8100
Registrant's telephone number, including area code
Date of fiscal year end: April 30
Date of reporting period: June 12, 2015 through October 31, 2015
Item 1. Reports to Stockholders.
![](https://capedge.com/proxy/N-CSRS/0000898531-16-000546/pacer-cover.jpg)
SEMI-ANNUAL REPORT | |
October 31, 2015 |
Pacer TrendpilotTM 750 ETF Ticker: PTLC | |
Pacer TrendpilotTM 450 ETF Ticker: PTMC | |
Pacer TrendpilotTM 100 ETF Ticker: PTNQ | |
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Pacer Funds
TABLE OF CONTENTS
Page | |
Expense Example | 1 |
Portfolio Allocation | 3 |
Schedules of Investments | 6 |
Statements of Assets and Liabilities | 36 |
Statements of Operations | 37 |
Statements of Changes in Net Assets | 38 |
Financial Highlights | 41 |
Notes to Financial Statements | 44 |
Additional Information | 50 |
Privacy Policy | 56 |
Pacer Funds
EXPENSE EXAMPLE
For the Periods Ended October 31, 2015 (Unaudited)
As a shareholder of Pacer Trendpilot™ 750 ETF, Pacer Trendpilot™ 450 ETF and Pacer Trendpilot™ 100 ETF (the “Funds”) you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares, and (2) ongoing costs, including management fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) 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 for the entire period (June 12, 2015 – October 31, 2015).
Actual Expenses
The first line of the table provides information about actual account values based on actual returns 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 under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table provides information about hypothetical account values based on a hypothetical return and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual returns. 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 your 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 of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher.
1
Pacer Funds
EXPENSE EXAMPLE
For the Periods Ended October 31, 2015 (Unaudited) (Continued)
Pacer Trendpilot™ 750 ETF | |||
Beginning | Ending | ||
Account Value | Account Value | Expenses Paid | |
June 12, 2015* | October 31, 2015 | During the Period^ | |
Actual | $1,000 | $ 940 | $2.24 |
Hypothetical (5% annual | $1,000 | $1,017 | $2.33 |
return before expenses) | |||
Pacer Trendpilot™ 450 ETF | |||
Beginning | Ending | ||
Account Value | Account Value | Expenses Paid | |
June 12, 2015* | October 31, 2015 | During the Period^ | |
Actual | $1,000 | $ 929 | $2.23 |
Hypothetical (5% annual | $1,000 | $1,017 | $2.33 |
return before expenses) | |||
Pacer Trendpilot™ 100 ETF | |||
Beginning | Ending | ||
Account Value | Account Value | Expenses Paid | |
June 12, 2015* | October 31, 2015 | During the Period^ | |
Actual | $1,000 | $ 968 | $2.46 |
Hypothetical (5% annual | $1,000 | $1,017 | $2.53 |
return before expenses) |
* | Inception date of Fund. |
^ | The dollar amounts shown as expenses paid during the period are equal to the annualized six-month expense ratio multiplied by the average account value during the period, multiplied by the number of days (141) in the most recent six-month period and divided by the number of days in the most recent twelve month period. |
2
Pacer Trendpilot™ 750 ETF
PORTFOLIO ALLOCATION
As of October 31, 2015 (Unaudited)
Percentage of | |
Sector | Net Assets |
Manufacturing | 40.0% |
Finance & Insurance | 16.4% |
Information | 14.5% |
Retail Trade | 7.3% |
Professional, Scientific & Technical Services | 3.6% |
Utilities | 3.3% |
Mining, Quarrying, Oil & Gas Extraction | 3.1% |
Transportation & Warehousing | 2.7% |
Real Estate, Rental & Leasing | 2.4% |
Wholesale Trade | 2.3% |
Accommodation & Food Services | 1.7% |
Administrative, Support & Waste Management & Remediation Services | 1.6% |
Healthcare & Social Assistance | 0.3% |
Arts, Entertainment & Recreation | 0.2% |
Construction | 0.2% |
Management of Companies & Enterprises | 0.1% |
Agriculture, Forestry, Fishing & Hunting | 0.0%* |
Other Services | 0.0%* |
Short-term Investments | 18.0% |
Liabilities in excess of other assets | -17.7% |
Total | 100.0% |
*Less than 0.05%.
3
Pacer Trendpilot™ 450 ETF
PORTFOLIO ALLOCATION
As of October 31, 2015 (Unaudited)
Percentage of | |
Asset Type | Net Assets |
Short-term Investments | 108.8% |
Liabilities in excess of other assets | -8.8% |
Total | 100.0% |
4
Pacer Trendpilot™ 100 ETF
PORTFOLIO ALLOCATION
As of October 31, 2015 (Unaudited)
Percentage of | |
Sector | Net Assets |
Manufacturing | 40.6% |
Information | 34.1% |
Retail Trade | 12.0% |
Professional, Scientific & Technical Services | 6.8% |
Administrative, Support & Waste Management & Remediation Services | 2.3% |
Accommodation & Food Services | 2.1% |
Transportation & Warehousing | 0.9% |
Wholesale Trade | 0.8% |
Finance & Insurance | 0.2% |
Arts, Entertainment & Recreation | 0.1% |
Short-term Investments | 0.1% |
Liabilities in excess of other assets | 0.0%* |
Total | 100.0% |
*Less than 0.05%.
5
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited)
Shares | Value | |||||||
CLOSED-END FUNDS – 0.1% | ||||||||
Finance and Insurance – 0.1% | ||||||||
American Capital Ltd. (a) | 4,162 | $ | 53,232 | |||||
Ares Capital Corp. | 4,808 | 73,226 | ||||||
TOTAL CLOSED-END FUNDS (Cost $127,316) | 126,458 | |||||||
COMMON STOCKS – 96.4% | ||||||||
Accommodation and Food Services – 1.6% | ||||||||
Chipotle Mexican Grill, Inc. (a) | 360 | 230,483 | ||||||
Darden Restaurants, Inc. | 1,234 | 76,372 | ||||||
Domino’s Pizza, Inc. | 536 | 57,175 | ||||||
Hilton Worldwide Holdings, Inc. | 1,808 | 45,182 | ||||||
Hyatt Hotels Corp. (a) | 438 | 22,075 | ||||||
Marriott International, Inc. | 3,048 | 234,025 | ||||||
McDonald’s Corp. | 13,977 | 1,568,918 | ||||||
MGM Resorts International (a) | 5,947 | 137,911 | ||||||
Panera Bread Co. (a) | 280 | 49,664 | ||||||
Starbucks Corp. | 20,201 | 1,263,977 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 2,470 | 197,279 | ||||||
Wyndham Worldwide Corp. | 1,605 | 130,567 | ||||||
Yum Brands, Inc. | 6,298 | 446,591 | ||||||
4,460,219 | ||||||||
Administrative, Support and Waste Management | ||||||||
and Remediation Services – 1.6% | ||||||||
Akamai Technologies, Inc. (a) | 2,381 | 144,812 | ||||||
Alliance Data Systems Corp. (a) | 826 | 245,578 | ||||||
Baker Hughes, Inc. | 5,920 | 311,866 | ||||||
Dun & Bradstreet Corp. | 434 | 49,420 | ||||||
Equifax, Inc. | 1,701 | 181,276 | ||||||
FireEye, Inc. (a) | 857 | 22,411 | ||||||
Gartner, Inc. (a) | 1,179 | 106,900 | ||||||
ManpowerGroup, Inc. | 1,030 | 94,533 | ||||||
Moody’s Corp. | 2,394 | 230,207 | ||||||
Paychex, Inc. | 4,665 | 240,621 | ||||||
PayPal Holdings, Inc. (a) | 17,041 | 613,646 | ||||||
Premier, Inc. (a) | 440 | 14,876 | ||||||
Republic Services, Inc. | 3,729 | 163,107 |
The accompanying notes are an integral part of these financial statements.
6
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Administrative, Support and Waste Management | ||||||||
and Remediation Services – 1.6% (Continued) | ||||||||
Robert Half International, Inc. | 1,923 | $ | 101,265 | |||||
Rollins, Inc. | 1,539 | 41,276 | ||||||
Stericycle, Inc. (a) | 1,209 | 146,736 | ||||||
Synchrony Financial (a) | 1,906 | 58,629 | ||||||
The ADT Corp. | 2,436 | 80,485 | ||||||
The Priceline Group, Inc. (a) | 755 | 1,097,951 | ||||||
TripAdvisor, Inc. (a) | 1,294 | 108,411 | ||||||
Waste Connections, Inc. | 1,575 | 85,806 | ||||||
Waste Management, Inc. | 5,622 | 302,239 | ||||||
4,442,051 | ||||||||
Arts, Entertainment, and Recreation – 0.2% | ||||||||
Global Payments, Inc. | 831 | 113,357 | ||||||
Las Vegas Sands Corp. | 5,989 | 296,515 | ||||||
Live Nation Entertainment, Inc. (a) | 1,264 | 34,482 | ||||||
Wynn Resorts Ltd | 1,258 | 87,997 | ||||||
532,351 | ||||||||
Construction – 0.2% | ||||||||
DR Horton, Inc. | 4,195 | 123,501 | ||||||
Lennar Corp. | 2,136 | 106,949 | ||||||
NVR, Inc. (a) | 53 | 86,801 | ||||||
PulteGroup, Inc. | 4,452 | 81,605 | ||||||
Quanta Services, Inc. (a) | 3,031 | 60,953 | ||||||
SolarCity Corp. (a) | 369 | 10,941 | ||||||
Toll Brothers, Inc. (a) | 2,014 | 72,444 | ||||||
543,194 | ||||||||
Finance and Insurance – 15.5% | ||||||||
Aetna, Inc. | 5,114 | 586,985 | ||||||
Affiliated Managers Group, Inc. (a) | 781 | 140,783 | ||||||
Aflac, Inc. | 5,979 | 381,161 | ||||||
Alleghany Corp. (a) | 200 | 99,254 | ||||||
Allstate Corp. | 6,056 | 374,745 | ||||||
American Express Co. | 12,481 | 914,358 | ||||||
American Financial Group, Inc. | 1,095 | 79,048 |
The accompanying notes are an integral part of these financial statements.
7
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Finance and Insurance – 15.5% (Continued) | ||||||||
American International Group, Inc. | 7,353 | $ | 463,680 | |||||
Ameriprise Financial, Inc. | 2,458 | 283,555 | ||||||
Anthem, Inc. | 3,879 | 539,763 | ||||||
Aramark | 962 | 29,197 | ||||||
Arch Capital Group Ltd. (a) | 1,487 | 111,361 | ||||||
Arthur J Gallagher & Co. | 2,067 | 90,390 | ||||||
Assurant, Inc. | 885 | 72,154 | ||||||
Assured Guaranty Ltd. | 2,236 | 61,356 | ||||||
Axis Capital Holdings Ltd. | 1,281 | 69,174 | ||||||
Bank of America Corp. | 161,036 | 2,702,184 | ||||||
Bank of New York Mellon Corp. | 17,051 | 710,174 | ||||||
BB&T Corp. | 11,035 | 409,950 | ||||||
Berkshire Hathaway, Inc. (a) | 28,301 | 3,849,502 | ||||||
BlackRock, Inc. | 1,823 | 641,641 | ||||||
Brown & Brown, Inc. | 1,735 | 55,988 | ||||||
Capital One Financial Corp. | 7,515 | 592,934 | ||||||
CBOE Holdings, Inc. | 141 | 9,453 | ||||||
Centene Corp. (a) | 1,473 | 87,614 | ||||||
Charles Schwab Corp. | 17,460 | 532,879 | ||||||
Chubb Corp. | 3,321 | 429,571 | ||||||
Cigna Corp. | 3,758 | 503,722 | ||||||
Cincinnati Financial Corp. | 2,035 | 122,568 | ||||||
CIT Group, Inc. | 2,324 | 99,932 | ||||||
Citigroup, Inc. | 46,443 | 2,469,374 | ||||||
Citizens Financial Group, Inc. | 2,089 | 50,763 | ||||||
CME Group, Inc. | 4,291 | 405,371 | ||||||
CNA Financial Corp. | 413 | 15,099 | ||||||
Comerica, Inc. | 2,320 | 100,688 | ||||||
Commerce Bancshares, Inc. | 1,254 | 57,120 | ||||||
CommScope Holding Co., Inc. (a) | 1,325 | 42,970 | ||||||
Cullen/Frost Bankers, Inc. | 783 | 53,589 | ||||||
Discover Financial Services | 6,504 | 365,655 | ||||||
E*Trade Financial Corp. (a) | 3,726 | 106,228 | ||||||
East West Bancorp, Inc. | 1,934 | 78,114 | ||||||
Eaton Vance Corp. | 1,624 | 58,643 | ||||||
Everest Re Group Ltd. | 455 | 80,976 |
The accompanying notes are an integral part of these financial statements.
8
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Finance and Insurance – 15.5% (Continued) | ||||||||
Fifth Third Bancorp | 11,984 | $ | 228,295 | |||||
First Republic Bank | 190 | 12,409 | ||||||
FleetCor Technologies, Inc. (a) | 561 | 81,267 | ||||||
FNF Group | 4,285 | 151,175 | ||||||
Franklin Resources, Inc. | 6,187 | 252,182 | ||||||
Goldman Sachs Group, Inc. | 6,335 | 1,187,813 | ||||||
H&R Block, Inc. | 3,495 | 130,224 | ||||||
Hartford Financial Services Group, Inc. | 5,992 | 277,190 | ||||||
Health Net, Inc. (a) | 1,012 | 65,031 | ||||||
Hudson City Bancorp, Inc. | 6,963 | 70,466 | ||||||
Humana, Inc. | 1,877 | 335,289 | ||||||
Huntington Bancshares, Inc. | 10,664 | 116,984 | ||||||
Intercontinental Exchange, Inc. | 1,628 | 410,907 | ||||||
Invesco Ltd. | 6,242 | 207,047 | ||||||
JPMorgan Chase & Co. | 54,220 | 3,483,635 | ||||||
KeyCorp. | 12,046 | 149,611 | ||||||
Legg Mason, Inc. | 1,603 | 71,734 | ||||||
Lincoln National Corp. | 3,650 | 195,312 | ||||||
Loews Corp. | 5,427 | 197,868 | ||||||
M&T Bank Corp. | 1,648 | 197,513 | ||||||
Markel Corp. (a) | 188 | 163,184 | ||||||
Marsh & McLennan Cos., Inc. | 7,835 | 436,723 | ||||||
MetLife, Inc. | 14,369 | 723,910 | ||||||
Morgan Stanley | 23,372 | 770,575 | ||||||
NASDAQ OMX Group, Inc. | 1,679 | 97,197 | ||||||
Navient Corp. | 4,547 | 59,975 | ||||||
New York Community Bancorp, Inc. | 5,962 | 98,492 | ||||||
Northern Trust Corp. | 3,574 | 251,574 | ||||||
Oaktree Capital Group LLC | 1,744 | 86,956 | ||||||
PartnerRe Ltd. | 667 | 92,713 | ||||||
People’s United Financial, Inc. | 4,104 | 65,459 | ||||||
PNC Financial Services Group, Inc. | 7,572 | 683,449 | ||||||
Principal Financial Group, Inc. | 3,601 | 180,626 | ||||||
Progressive Corp. | 7,933 | 262,820 | ||||||
Prudential Financial, Inc. | 6,558 | 541,035 | ||||||
Raymond James Financial, Inc. | 1,748 | 96,332 |
The accompanying notes are an integral part of these financial statements.
9
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Finance and Insurance – 15.5% (Continued) | ||||||||
Regions Financial Corp. | 18,912 | $ | 176,827 | |||||
Reinsurance Group of America, Inc. | 926 | 83,562 | ||||||
RenaissanceRe Holdings Ltd. | 497 | 54,486 | ||||||
Santander Consumer USA Holdings, Inc. (a) | 267 | 4,809 | ||||||
SEI Investments Co. | 1,787 | 92,602 | ||||||
Signature Bank (a) | 685 | 102,010 | ||||||
SLM Corp. (a) | 4,537 | 32,031 | ||||||
Springleaf Holdings, Inc. (a) | 679 | 31,852 | ||||||
State Street Corp. | 6,311 | 435,459 | ||||||
SunTrust Banks, Inc. | 7,605 | 315,760 | ||||||
SVB Financial Group (a) | 686 | 83,740 | ||||||
T Rowe Price Group, Inc. | 3,751 | 283,651 | ||||||
TD Ameritrade Holding Corp. | 4,326 | 149,117 | ||||||
TFS Financial Corp. | 1,096 | 19,246 | ||||||
Torchmark Corp. | 1,790 | 103,838 | ||||||
Travelers Companies, Inc. | 4,624 | 522,003 | ||||||
UnitedHealth Group, Inc. | 12,993 | 1,530,316 | ||||||
Unum Group | 3,271 | 113,340 | ||||||
US Bancorp | 25,903 | 1,092,589 | ||||||
Vantiv, Inc. (a) | 1,013 | 50,802 | ||||||
Verisk Analytics, Inc. (a) | 1,863 | 133,409 | ||||||
Visa, Inc. | 23,306 | 1,808,080 | ||||||
Voya Financial, Inc. | 2,999 | 121,669 | ||||||
Wells Fargo & Co. | 67,830 | 3,672,316 | ||||||
Western Union Co. | 5,747 | 110,630 | ||||||
WR Berkley Corp. | 1,174 | 65,544 | ||||||
Zions Bancorp | 2,702 | 77,737 | ||||||
42,630,063 | ||||||||
Healthcare and Social Assistance – 0.3% | ||||||||
Brookdale Senior Living, Inc. (a) | 2,640 | 55,203 | ||||||
Community Health Systems, Inc. (a) | 1,412 | 39,593 | ||||||
DaVita HealthCare Partners, Inc. (a) | 2,508 | 194,395 | ||||||
Envision Healthcare Holdings, Inc. (a) | 817 | 23,039 | ||||||
HCA Holdings, Inc. (a) | 643 | 44,232 | ||||||
Laboratory Corp. of American Holdings (a) | 1,427 | 175,150 | ||||||
MEDNAX, Inc. (a) | 1,294 | 91,188 |
The accompanying notes are an integral part of these financial statements.
10
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Healthcare and Social Assistance – 0.3% (Continued) | ||||||||
Quest Diagnostics, Inc. | 1,921 | $ | 130,532 | |||||
Universal Health Services, Inc. | 1,303 | 159,083 | ||||||
912,415 | ||||||||
Information – 14.3% | ||||||||
Adobe Systems, Inc. (a) | 6,671 | 591,451 | ||||||
Alphabet, Inc. (a) | 8,080 | 5,743,345 | ||||||
AMC Networks, Inc. (a) | 720 | 53,201 | ||||||
ANSYS, Inc. (a) | 1,102 | 105,032 | ||||||
AT&T, Inc. | 88,374 | 2,961,413 | ||||||
Autodesk, Inc. (a) | 3,227 | 178,098 | ||||||
Automatic Data Processing, Inc. | 6,837 | 594,751 | ||||||
CA, Inc. | 4,812 | 133,341 | ||||||
Cablevision Systems Corp. | 2,877 | 93,761 | ||||||
CBS Corp. | 6,422 | 298,751 | ||||||
CenturyLink, Inc. | 6,764 | 190,812 | ||||||
Charter Communications, Inc. – Class A (a) | 1,285 | 245,358 | ||||||
Citrix Systems, Inc. (a) | 2,153 | 176,761 | ||||||
Comcast Corp. – Class A | 29,038 | 1,818,360 | ||||||
CoStar Group, Inc. (a) | 464 | 94,224 | ||||||
Discovery Communications, Inc. – Class A (a) | 2,041 | 60,087 | ||||||
DISH Network Corp. (a) | 3,261 | 205,345 | ||||||
Electronic Arts, Inc. (a) | 4,366 | 314,658 | ||||||
Facebook, Inc. (a) | 32,348 | 3,298,526 | ||||||
Fidelity National Information Services, Inc. | 3,622 | 264,116 | ||||||
Fiserv, Inc. (a) | 3,361 | 324,370 | ||||||
Fortinet, Inc. (a) | 2,171 | 74,596 | ||||||
Frontier Communications Corp. | 16,419 | 84,394 | ||||||
Graham Holdings Co. | 69 | 38,120 | ||||||
IAC/InterActiveCorp | 1,117 | 74,850 | ||||||
Intuit, Inc. | 3,727 | 363,122 | ||||||
Level 3 Communications, Inc. (a) | 3,491 | 177,866 | ||||||
Liberty Broadband Corp. (a) | 1,246 | 67,982 | ||||||
Liberty Interactive Corp. QVC Group (a) | 6,274 | 171,719 | ||||||
Liberty Media Corp. – Class A (a) | 4,878 | 198,827 | ||||||
Liberty Ventures (a) | 2,059 | 89,711 | ||||||
Linkedin Corp. (a) | 1,536 | 369,976 |
The accompanying notes are an integral part of these financial statements.
11
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Information – 14.3% (Continued) | ||||||||
Lions Gate Entertainment Corp. | 1,712 | $ | 66,717 | |||||
McGraw Hill Financial, Inc. | 3,433 | 318,033 | ||||||
Microsoft Corp. | 119,306 | 6,280,268 | ||||||
MSCI, Inc. | 1,376 | 92,192 | ||||||
Msg Network, Inc. (a) | 812 | 16,662 | ||||||
Netflix, Inc. (a) | 5,769 | 625,244 | ||||||
NetSuite, Inc. (a) | 686 | 58,358 | ||||||
News Corp. | 4,711 | 72,549 | ||||||
Nuance Communications, Inc. (a) | 4,980 | 84,511 | ||||||
Oracle Corp. | 50,876 | 1,976,024 | ||||||
Palo Alto Networks, Inc. (a) | 113 | 18,193 | ||||||
Rackspace Hosting, Inc. (a) | 1,429 | 36,940 | ||||||
Red Hat, Inc. (a) | 2,386 | 188,756 | ||||||
SBA Communications Corp. (a) | 1,858 | 221,139 | ||||||
Scripps Networks Interactive, Inc. | 1,239 | 74,439 | ||||||
Sirius XM Holdings, Inc. (a) | 36,740 | 149,899 | ||||||
Splunk, Inc. (a) | 272 | 15,275 | ||||||
SS&C Technologies Holdings, Inc. | 384 | 28,474 | ||||||
Symantec Corp. | 9,923 | 204,414 | ||||||
Synopsys, Inc. (a) | 2,023 | 101,110 | ||||||
Tableau Software, Inc. (a) | 109 | 9,152 | ||||||
TEGNA, Inc. | 3,229 | 87,312 | ||||||
Thomson Reuters Corp. | 4,921 | 201,859 | ||||||
Time Warner Cable, Inc. | 4,085 | 773,699 | ||||||
Time Warner, Inc. | 12,713 | 957,797 | ||||||
T-Mobile US, Inc. (a) | 10,758 | 407,621 | ||||||
Total System Services, Inc. | 2,096 | 109,935 | ||||||
Twenty First Century Fox, Inc. | 16,384 | 502,825 | ||||||
Twitter, Inc. (a) | 1,289 | 36,685 | ||||||
Ultimate Software Group, Inc. (a) | 354 | 72,340 | ||||||
VeriSign, Inc. (a) | 1,127 | 90,836 | ||||||
Verizon Communications, Inc. | 60,431 | 2,833,005 | ||||||
Viacom, Inc. | 5,054 | 249,213 | ||||||
Walt Disney Co. | 23,936 | 2,722,481 | ||||||
Zayo Group Holdings, Inc. (a) | 329 | 8,728 | ||||||
39,149,609 |
The accompanying notes are an integral part of these financial statements.
12
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Management of Companies and Enterprises – 0.1% | ||||||||
AES Corp. | 9,142 | $ | 100,105 | |||||
AGL Resources, Inc. | 1,538 | 96,125 | ||||||
196,230 | ||||||||
Manufacturing – 39.9% | ||||||||
3M Co. | 9,133 | 1,435,799 | ||||||
Abbott Laboratories | 21,713 | 972,742 | ||||||
AbbVie, Inc. | 19,275 | 1,147,826 | ||||||
Activision Blizzard, Inc. | 6,971 | 242,312 | ||||||
AGCO Corp. | 812 | 39,293 | ||||||
Agilent Technologies, Inc. | 4,577 | 172,827 | ||||||
Air Products & Chemicals, Inc. | 2,853 | 396,510 | ||||||
Akorn, Inc. (a) | 1,188 | 31,767 | ||||||
Albemarle Corp. | 1,613 | 86,328 | ||||||
Alcoa, Inc. | 17,400 | 155,382 | ||||||
Alexion Pharmaceuticals, Inc. (a) | 2,496 | 439,296 | ||||||
Alkermes PLC (a) | 1,790 | 128,737 | ||||||
Allergan PLC (a) | 5,103 | 1,574,122 | ||||||
Allison Transmission Holdings, Inc. | 385 | 11,049 | ||||||
Alnylam Pharmaceuticals, Inc. (a) | 961 | 82,598 | ||||||
Altera Corp. | 4,237 | 222,654 | ||||||
Altria Group, Inc. | 26,227 | 1,585,947 | ||||||
AMETEK, Inc. | 3,247 | 178,001 | ||||||
Amphenol Corp. | 3,466 | 187,927 | ||||||
Anacor Pharmaceuticals, Inc. (a) | 617 | 69,357 | ||||||
Analog Devices, Inc. | 4,054 | 243,726 | ||||||
AO Smith Corp. | 1,061 | 81,506 | ||||||
Apple, Inc. | 83,816 | 10,016,012 | ||||||
Applied Materials, Inc. | 15,799 | 264,949 | ||||||
AptarGroup, Inc. | 658 | 48,402 | ||||||
Archer-Daniels-Midland Co. | 8,253 | 376,832 | ||||||
Ashland, Inc. | 922 | 101,162 | ||||||
Autoliv, Inc. | 1,154 | 139,911 | ||||||
Avery Dennison Corp. | 1,163 | 75,560 | ||||||
Axalta Coating Systems Ltd. (a) | 771 | 21,303 | ||||||
B/E Aerospace, Inc. | 1,443 | 67,749 |
The accompanying notes are an integral part of these financial statements.
13
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Manufacturing – 39.9% (Continued) | ||||||||
Ball Corp. | 1,934 | $ | 132,479 | |||||
Baxalta, Inc. | 7,890 | 271,889 | ||||||
Baxter International, Inc. | 7,890 | 295,007 | ||||||
Becton Dickinson & Co. | 3,022 | 430,695 | ||||||
Bemis Co., Inc. | 1,357 | 62,123 | ||||||
BioMarin Pharmaceutical, Inc. (a) | 1,559 | 182,465 | ||||||
Blue Buffalo Pet Prods, Inc. (a) | 510 | 9,149 | ||||||
Boeing Co. | 9,812 | 1,452,863 | ||||||
BorgWarner, Inc. | 3,223 | 138,009 | ||||||
Boston Scientific Corp. (a) | 16,090 | 294,125 | ||||||
Bristol-Myers Squibb Co. | 24,171 | 1,594,077 | ||||||
Broadcom Corp. | 7,340 | 377,276 | ||||||
Brown-Forman Corp. | 1,770 | 187,939 | ||||||
Bunge Ltd. | 1,893 | 138,113 | ||||||
Cameron International Corp. (a) | 2,787 | 189,544 | ||||||
Campbell Soup Co. | 2,934 | 149,018 | ||||||
Carlisle Cos, Inc. | 706 | 61,422 | ||||||
Carter’s, Inc. | 719 | 65,343 | ||||||
Caterpillar, Inc. | 8,722 | 636,619 | ||||||
Celanese Corp. | 1,919 | 136,345 | ||||||
Celgene Corp. (a) | 11,642 | 1,428,590 | ||||||
CF Industries Holdings, Inc. | 3,062 | 155,458 | ||||||
Chevron Corp. | 27,343 | 2,484,932 | ||||||
Church & Dwight Co., Inc. | 1,738 | 149,624 | ||||||
Cintas Corp. | 1,293 | 120,365 | ||||||
Cisco Systems, Inc. | 74,237 | 2,141,737 | ||||||
Clorox Co. | 1,747 | 213,029 | ||||||
Coach, Inc. | 3,926 | 122,491 | ||||||
Coca-Cola Co. | 56,813 | 2,406,031 | ||||||
Coca-Cola Enterprises, Inc. | 3,105 | 159,411 | ||||||
Colfax Corp. (a) | 1,553 | 41,869 | ||||||
Colgate-Palmolive Co. | 13,052 | 866,000 | ||||||
ConAgra Foods, Inc. | 6,063 | 245,855 | ||||||
Constellation Brands, Inc. | 2,452 | 330,530 | ||||||
Corning, Inc. | 18,488 | 343,877 | ||||||
Coty, Inc. | 772 | 22,349 |
The accompanying notes are an integral part of these financial statements.
14
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Manufacturing – 39.9% (Continued) | ||||||||
CR Bard, Inc. | 1,034 | $ | 192,686 | |||||
Crown Holdings, Inc. (a) | 2,002 | 106,186 | ||||||
Cummins, Inc. | 2,451 | 253,703 | ||||||
Cytec Industries, Inc. | 872 | 64,894 | ||||||
Danaher Corp. | 8,751 | 816,556 | ||||||
Deere & Co. | 4,417 | 344,526 | ||||||
DENTSPLY International, Inc. | 1,998 | 121,578 | ||||||
DexCom, Inc. (a) | 1,115 | 92,902 | ||||||
Donaldson Co., Inc. | 1,388 | 41,918 | ||||||
Dover Corp. | 2,346 | 151,153 | ||||||
Dow Chemical Co. | 16,340 | 844,288 | ||||||
Dr Pepper Snapple Group, Inc. | 2,717 | 242,818 | ||||||
Eastman Chem Co. | 1,956 | 141,165 | ||||||
Eaton Corp. Plc | 6,902 | 385,891 | ||||||
Ecolab, Inc. | 3,893 | 468,523 | ||||||
Edwards Lifesciences Corp. (a) | 1,271 | 199,738 | ||||||
EI du Pont de Nemours & Co. | 13,167 | 834,788 | ||||||
Eli Lilly & Co. | 14,117 | 1,151,524 | ||||||
EMC Corp. | 28,912 | 758,073 | ||||||
Emerson Electric Co. | 9,859 | 465,641 | ||||||
Endo International PLC (a) | 1,361 | 81,646 | ||||||
Estee Lauder Cos., Inc. | 2,968 | 238,805 | ||||||
Exxon Mobil Corp. | 60,360 | 4,994,186 | ||||||
First Solar, Inc. (a) | 875 | 49,936 | ||||||
FLIR Systems, Inc. | 1,604 | 42,779 | ||||||
Flowserve Corp. | 1,670 | 77,421 | ||||||
FMC Corp. | 1,530 | 62,286 | ||||||
FMC Technologies, Inc. (a) | 2,232 | 75,509 | ||||||
Ford Motor Co. | 55,274 | 818,608 | ||||||
Fortune Brands Home & Security, Inc. | 1,554 | 81,321 | ||||||
Freescale Semiconductor Ltd. (a) | 1,175 | 39,351 | ||||||
General Dynamics Corp. | 3,757 | 558,215 | ||||||
General Electric Co. | 146,372 | 4,233,078 | ||||||
General Mills, Inc. | 8,907 | 517,586 | ||||||
General Motors Co. | 20,707 | 722,881 | ||||||
Gentex Corp. | 4,023 | 65,937 |
The accompanying notes are an integral part of these financial statements.
15
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Manufacturing – 39.9% (Continued) | ||||||||
Gilead Sciences, Inc. | 18,468 | $ | 1,996,945 | |||||
Goodyear Tire & Rubber Co. | 3,837 | 126,007 | ||||||
GoPro, Inc. (a) | 691 | 17,275 | ||||||
Hain Celestial Group, Inc. (a) | 1,385 | 69,042 | ||||||
Harley-Davidson, Inc. | 3,011 | 148,894 | ||||||
Harman International Industries, Inc. | 777 | 85,439 | ||||||
Harris Corp. | 1,747 | 138,240 | ||||||
Hasbro, Inc. | 1,370 | 105,257 | ||||||
Hershey Co. | 2,451 | 217,379 | ||||||
Hewlett-Packard Co. | 26,576 | 716,489 | ||||||
HollyFrontier Corp. | 2,336 | 114,394 | ||||||
Hologic, Inc. (a) | 3,042 | 118,212 | ||||||
Honeywell International, Inc. | 11,981 | 1,237,398 | ||||||
Hormel Foods Corp. | 2,061 | 139,221 | ||||||
Hubbell, Inc. | 593 | 57,432 | ||||||
Huntington Ingalls Industries, Inc. | 606 | 72,684 | ||||||
Huntsman Corp. | 3,076 | 40,511 | ||||||
IDEX Corp. | 1,053 | 80,828 | ||||||
IDEXX Laboratories, Inc. (a) | 1,125 | 77,197 | ||||||
Illinois Tool Works, Inc. | 4,705 | 432,578 | ||||||
Illumina, Inc. (a) | 1,717 | 246,012 | ||||||
Ingredion, Inc. | 908 | 86,314 | ||||||
Intel Corp. | 68,875 | 2,332,107 | ||||||
Intercept Pharmaceuticals, Inc. (a) | 190 | 29,868 | ||||||
International Flavors & Fragrances, Inc. | 1,062 | 123,256 | ||||||
International Paper Co. | 6,149 | 262,501 | ||||||
Intuitive Surgical, Inc. (a) | 493 | 244,824 | ||||||
Isis Pharmaceuticals, Inc. (a) | 1,111 | 53,495 | ||||||
Jabil Circuit, Inc. | 2,159 | 49,614 | ||||||
Jarden Corp. (a) | 2,900 | 129,920 | ||||||
JM Smucker Co. | 1,685 | 197,802 | ||||||
Johnson & Johnson | 40,010 | 4,042,210 | ||||||
Johnson Controls, Inc. | 8,653 | 390,943 | ||||||
Juniper Networks, Inc. | 5,420 | 170,134 | ||||||
Kellogg Co. | 3,930 | 277,144 | ||||||
Keurig Green Mountain, Inc. | 1,414 | 71,760 |
The accompanying notes are an integral part of these financial statements.
16
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Manufacturing – 39.9% (Continued) | ||||||||
Keysight Technologies, Inc. (a) | 2,571 | $ | 85,049 | |||||
Kimberly-Clark Corp. | 5,259 | 629,555 | ||||||
KLA-Tencor Corp. | 1,494 | 100,277 | ||||||
L-3 Communications Holdings, Inc. | 1,162 | 146,877 | ||||||
Lam Research Corp. | 2,024 | 155,018 | ||||||
Lear Corp. | 1,122 | 140,317 | ||||||
Leggett & Platt, Inc. | 1,821 | 82,000 | ||||||
Lennox International, Inc. | 553 | 73,444 | ||||||
Lincoln Electric Holdings, Inc. | 895 | 53,530 | ||||||
Linear Technology Corp. | 3,112 | 138,235 | ||||||
Lockheed Martin Corp. | 4,396 | 966,373 | ||||||
Marathon Oil Corp. | 9,815 | 180,400 | ||||||
Marathon Petroleum Corp. | 7,942 | 411,396 | ||||||
Marvell Technology Group Ltd. | 6,259 | 51,386 | ||||||
Masco Corp. | 4,494 | 130,326 | ||||||
Mattel, Inc. | 4,815 | 118,353 | ||||||
Maxim Integrated Products, Inc. | 3,507 | 143,717 | ||||||
McCormick & Co., Inc. | 1,487 | 124,878 | ||||||
Mead Johnson Nutrition Co. | 2,663 | 218,366 | ||||||
Medivation, Inc. (a) | 2,011 | 84,583 | ||||||
Merck & Co., Inc. | 38,234 | 2,089,870 | ||||||
Mettler-Toledo International, Inc. (a) | 305 | 94,852 | ||||||
Microchip Technology, Inc. | 2,867 | 138,447 | ||||||
Micron Technology, Inc. (a) | 15,667 | 259,446 | ||||||
Middleby Corp. (a) | 824 | 96,359 | ||||||
Mohawk Industries, Inc. (a) | 927 | 181,228 | ||||||
Molson Coors Brewing Co. | 1,974 | 173,909 | ||||||
Mondelez International, Inc. | 25,250 | 1,165,540 | ||||||
Monsanto Co. | 6,884 | 641,726 | ||||||
Monster Beverage Corp. (a) | 2,094 | 285,454 | ||||||
Mosaic Co. | 4,556 | 153,947 | ||||||
Motorola Solutions, Inc. | 3,117 | 218,096 | ||||||
Murphy Oil Corp. | 2,499 | 71,047 | ||||||
National Oilwell Varco, Inc. | 5,961 | 224,372 | ||||||
NCR Corp. (a) | 2,272 | 60,435 | ||||||
NetApp, Inc. | 4,247 | 144,398 |
The accompanying notes are an integral part of these financial statements.
17
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Manufacturing – 39.9% (Continued) | ||||||||
Newell Rubbermaid, Inc. | 3,610 | $ | 153,172 | |||||
NewMarket Corp. | 129 | 50,792 | ||||||
NIKE, Inc. | 9,165 | 1,200,890 | ||||||
Nordson Corp. | 631 | 44,952 | ||||||
Northrop Grumman Corp. | 2,855 | 536,026 | ||||||
Nucor Corp. | 3,711 | 156,975 | ||||||
NVIDIA Corp. | 5,907 | 167,582 | ||||||
ON Semiconductor Corp. (a) | 6,206 | 68,266 | ||||||
OPKO Health, Inc. (a) | 5,091 | 48,110 | ||||||
Owens Corning | 1,478 | 67,293 | ||||||
Owens-Illinois, Inc. (a) | 2,312 | 49,824 | ||||||
PACCAR, Inc. | 4,830 | 254,299 | ||||||
Packaging Corp of America | 1,310 | 89,669 | ||||||
Parker-Hannifin Corp. | 1,875 | 196,312 | ||||||
Pentair PLC | 2,569 | 143,658 | ||||||
PepsiCo, Inc. | 21,330 | 2,179,713 | ||||||
PerkinElmer, Inc. | 1,505 | 77,718 | ||||||
Pfizer, Inc. | 89,131 | 3,014,410 | ||||||
Philip Morris International, Inc. | 21,075 | 1,863,030 | ||||||
Pilgrim’s Pride Corp. | 1,272 | 24,155 | ||||||
Pinnacle Foods, Inc. | 462 | 20,365 | ||||||
Pitney Bowes, Inc. | 2,623 | 54,165 | ||||||
Polaris Industries, Inc. | 791 | 88,861 | ||||||
PPG Industries, Inc. | 3,915 | 408,178 | ||||||
Praxair, Inc. | 3,890 | 432,140 | ||||||
Precision Castparts Corp. | 1,931 | 445,694 | ||||||
PVH Corp. | 1,084 | 98,590 | ||||||
QUALCOMM, Inc. | 23,736 | 1,410,393 | ||||||
Raytheon Co. | 4,469 | 524,661 | ||||||
Regeneron Pharmaceuticals, Inc. (a) | 984 | 548,472 | ||||||
ResMed, Inc. | 1,893 | 109,056 | ||||||
Reynolds American, Inc. | 13,563 | 655,364 | ||||||
Rockwell Automation, Inc. | 1,845 | 201,400 | ||||||
Rockwell Collins, Inc. | 1,668 | 144,649 | ||||||
Roper Technologies, Inc. | 1,413 | 263,313 | ||||||
RPM International, Inc. | 1,760 | 80,450 |
The accompanying notes are an integral part of these financial statements.
18
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Manufacturing – 39.9% (Continued) | ||||||||
SanDisk Corp. | 3,065 | $ | 236,005 | |||||
Sealed Air Corp. | 2,670 | 131,150 | ||||||
Seattle Genetics, Inc. (a) | 1,405 | 58,293 | ||||||
Sherwin-Williams Co. | 1,147 | 306,054 | ||||||
Sirona Dental Systems, Inc. (a) | 736 | 80,320 | ||||||
Skechers U S A, Inc. (a) | 1,339 | 41,777 | ||||||
Skyworks Solutions, Inc. | 2,541 | 196,267 | ||||||
Snap-On, Inc. | 827 | 137,191 | ||||||
Sonoco Products Co. | 1,310 | 55,924 | ||||||
Spirit AeroSystems Holdings, Inc. (a) | 2,011 | 106,060 | ||||||
Sprint Corp. (a) | 12,117 | 57,313 | ||||||
St. Jude Medical, Inc. | 3,832 | 244,520 | ||||||
Stanley Black & Decker, Inc. | 2,144 | 227,221 | ||||||
Steel Dynamics, Inc. | 3,068 | 56,666 | ||||||
Stryker Corp. | 5,102 | 487,853 | ||||||
Teleflex, Inc. | 526 | 69,958 | ||||||
Teradata Corp. (a) | 2,178 | 61,224 | ||||||
Tesla Motors, Inc. (a) | 808 | 167,199 | ||||||
Tesoro Corp. | 1,789 | 191,298 | ||||||
Texas Instruments, Inc. | 11,381 | 645,530 | ||||||
Textron, Inc. | 3,941 | 166,192 | ||||||
The Cooper Cos., Inc. | 561 | 85,474 | ||||||
The Kraft Heinz Co. | 8,570 | 668,203 | ||||||
Thermo Fisher Scientific, Inc. | 5,770 | 754,601 | ||||||
TransDigm Group, Inc. (a) | 669 | 147,080 | ||||||
Trimble Navigation Ltd. (a) | 3,055 | 69,501 | ||||||
Trinity Industries, Inc. | 2,097 | 56,766 | ||||||
Tyson Foods, Inc. | 4,126 | 183,029 | ||||||
Under Armour, Inc. (a) | 2,244 | 213,360 | ||||||
United Technologies Corp. | 13,192 | 1,298,225 | ||||||
United Therapeutics Corp. (a) | 557 | 81,673 | ||||||
Valero Energy Corp. | 7,487 | 493,543 | ||||||
Valspar Corp. | 1,015 | 82,164 | ||||||
Varian Medical Systems, Inc. (a) | 1,424 | 111,827 | ||||||
Vertex Pharmaceuticals, Inc. (a) | 2,816 | 351,268 | ||||||
VF Corp. | 3,603 | 243,275 |
The accompanying notes are an integral part of these financial statements.
19
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Manufacturing – 39.9% (Continued) | ||||||||
WABCO Holdings, Inc. (a) | 778 | $ | 87,315 | |||||
Wabtec Corp. | 1,312 | 108,725 | ||||||
Western Digital Corp. | 3,324 | 222,110 | ||||||
Westlake Chemical Corp. | 630 | 37,970 | ||||||
Whirlpool Corp. | 1,111 | 177,916 | ||||||
WhiteWave Foods Co. (a) | 1,522 | 62,372 | ||||||
WR Grace & Co. (a) | 989 | 99,197 | ||||||
Xilinx, Inc. | 3,722 | 177,242 | ||||||
Xylem, Inc. | 2,344 | 85,345 | ||||||
Zimmer Biomet Holdings, Inc. | 2,300 | 240,511 | ||||||
Zoetis, Inc. | 1,451 | 62,407 | ||||||
109,502,573 | ||||||||
Mining, Quarrying, Oil and Gas Extraction – 3.1% | ||||||||
Anadarko Petroleum Corp. | 7,368 | 492,772 | ||||||
Antero Resources Corp. (a) | 842 | 19,846 | ||||||
Apache Corp. | 5,480 | 258,272 | ||||||
Cabot Oil & Gas Corp. | 4,996 | 108,463 | ||||||
Cheniere Energy, Inc. (a) | 3,225 | 159,702 | ||||||
Chesapeake Energy Corp. | 9,467 | 67,500 | ||||||
Cimarex Energy Co. | 1,153 | 136,123 | ||||||
Concho Resources, Inc. (a) | 1,513 | 175,372 | ||||||
ConocoPhillips | 17,908 | 955,392 | ||||||
CONSOL Energy, Inc. | 3,066 | 20,420 | ||||||
Continental Resources, Inc. (a) | 1,024 | 34,724 | ||||||
Devon Energy Corp. | 5,948 | 249,400 | ||||||
EnLink Midstream LLC | 2,512 | 49,486 | ||||||
EOG Resources, Inc. | 6,884 | 590,991 | ||||||
Freeport-McMoRan, Inc. | 15,122 | 177,986 | ||||||
Halliburton Co. | 12,356 | 474,223 | ||||||
Helmerich & Payne, Inc. | 1,384 | 77,878 | ||||||
Hess Corp. | 3,850 | 216,408 | ||||||
Martin Marietta Materials, Inc. | 905 | 140,411 | ||||||
Newfield Exploration Co. (a) | 2,092 | 84,077 | ||||||
Newmont Mining Corp. | 7,254 | 141,163 | ||||||
Noble Energy, Inc. | 4,532 | 162,427 | ||||||
Occidental Petroleum Corp. | 11,088 | 826,500 |
The accompanying notes are an integral part of these financial statements.
20
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Mining, Quarrying, Oil and | ||||||||
Gas Extraction – 3.1% (Continued) | ||||||||
Oceaneering International, Inc. | 1,113 | $ | 46,768 | |||||
Phillips 66 | 7,904 | 703,851 | ||||||
Pioneer Natural Resources Co. | 2,006 | 275,103 | ||||||
Questar Corp. | 1,961 | 40,495 | ||||||
Range Resources Corp. | 2,404 | 73,178 | ||||||
Schlumberger Ltd. | 18,584 | 1,452,525 | ||||||
Southern Copper Corp. | 1,975 | 54,826 | ||||||
Southwestern Energy Co. (a) | 5,532 | 61,073 | ||||||
Vulcan Materials Co. | 1,678 | 162,061 | ||||||
Whiting Petroleum Corp. (a) | 2,973 | 51,225 | ||||||
8,540,641 | ||||||||
Other Services (except | ||||||||
Public Administration) – 0.0% (b) | ||||||||
Service Corp. International | 2,143 | 60,561 | ||||||
Professional, Scientific, | ||||||||
and Technical Services – 3.5% | ||||||||
Amgen, Inc. | 9,641 | 1,525,013 | ||||||
Athenahealth, Inc. (a) | 444 | 67,688 | ||||||
Biogen, Inc. (a) | 2,837 | 824,177 | ||||||
Broadridge Financial Solutions, Inc. | 1,609 | 95,864 | ||||||
Cadence Design System, Inc. (a) | 3,937 | 87,480 | ||||||
CDW Corp. | 369 | 16,491 | ||||||
Cerner Corp. (a) | 3,933 | 260,719 | ||||||
Cognizant Technology Solutions Corp. – Class A (a) | 8,865 | 603,795 | ||||||
Computer Sciences Corp. | 1,640 | 109,208 | ||||||
F5 Networks, Inc. (a) | 1,027 | 113,175 | ||||||
FactSet Research Systems, Inc. | 478 | 83,707 | ||||||
Fluor Corp. | 1,945 | 92,990 | ||||||
Genpact Ltd. (a) | 2,459 | 60,934 | ||||||
IHS, Inc. (a) | 873 | 104,358 | ||||||
IMS Health Holdings, Inc. (a) | 1,231 | 33,508 | ||||||
Incyte Corp. (a) | 2,208 | 259,506 | ||||||
International Business Machines Corp. | 13,164 | 1,844,013 | ||||||
Interpublic Group of Cos., Inc. | 5,870 | 134,599 |
The accompanying notes are an integral part of these financial statements.
21
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Professional, Scientific, | ||||||||
and Technical Services – 3.5% (Continued) | ||||||||
Jack Henry & Associates, Inc. | 1,001 | $ | 77,417 | |||||
Jacobs Engineering Group, Inc. (a) | 1,728 | 69,362 | ||||||
MasterCard, Inc. | 14,904 | 1,475,347 | ||||||
Omnicom Group, Inc. | 3,588 | 268,813 | ||||||
Quintiles Transnational Holdings, Inc. (a) | 1,027 | 65,369 | ||||||
Sabre Corp. | 826 | 24,218 | ||||||
Salesforce.com, Inc. (a) | 7,631 | 593,005 | ||||||
ServiceNow, Inc. (a) | 227 | 18,535 | ||||||
Towers Watson & Co. | 837 | 103,420 | ||||||
VMware, Inc. (a) | 1,292 | 77,714 | ||||||
Waters Corp. (a) | 1,182 | 151,060 | ||||||
Workday, Inc. (a) | 293 | 23,138 | ||||||
Yahoo!, Inc. (a) | 12,467 | 444,075 | ||||||
9,708,698 | ||||||||
Real Estate, Rental and Leasing – 0.4% | ||||||||
AMERCO | 90 | 36,568 | ||||||
Avis Budget Group, Inc. (a) | 1,449 | 72,363 | ||||||
CBRE Group, Inc. (a) | 4,486 | 167,238 | ||||||
Forest City Enterprises, Inc. (a) | 3,286 | 72,621 | ||||||
Hertz Global Holdings, Inc. (a) | 2,261 | 44,089 | ||||||
Howard Hughes Corp. (a) | 570 | 70,441 | ||||||
Jones Lang LaSalle, Inc. | 603 | 100,526 | ||||||
Leucadia National Corp. | 4,939 | 98,829 | ||||||
United Rentals, Inc. (a) | 1,359 | 101,735 | ||||||
Welltower, Inc. | 5,293 | 343,357 | ||||||
1,107,767 | ||||||||
Retail Trade – 7.3% | ||||||||
Advance Auto Parts, Inc. | 994 | 197,239 | ||||||
Amazon.com, Inc. (a) | 5,402 | 3,381,112 | ||||||
AutoNation, Inc. (a) | 1,182 | 74,691 | ||||||
AutoZone, Inc. (a) | 436 | 342,003 | ||||||
Bed Bath & Beyond, Inc. (a) | 2,146 | 127,966 | ||||||
Best Buy Co., Inc. | 3,436 | 120,363 | ||||||
CarMax, Inc. (a) | 2,764 | 163,104 |
The accompanying notes are an integral part of these financial statements.
22
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Retail Trade – 7.3% (Continued) | ||||||||
Copart, Inc. (a) | 1,682 | $ | 60,905 | |||||
Costco Wholesale Corp. | 6,366 | 1,006,592 | ||||||
CVS Health Corp. | 16,192 | 1,599,446 | ||||||
Dick’s Sporting Goods, Inc. | 1,270 | 56,578 | ||||||
Dollar General Corp. | 836 | 56,656 | ||||||
Dollar Tree, Inc. (a) | 3,287 | 215,266 | ||||||
eBay, Inc. (a) | 17,041 | 475,444 | ||||||
Express Scripts Holding Co. (a) | 10,571 | 913,123 | ||||||
Fastenal Co. | 3,844 | 150,531 | ||||||
Foot Locker, Inc. | 1,949 | 132,045 | ||||||
GameStop Corp. | 1,742 | 80,254 | ||||||
Gap, Inc. | 4,253 | 115,767 | ||||||
Hanesbrands, Inc. | 5,410 | 172,795 | ||||||
Home Depot, Inc. | 17,551 | 2,170,006 | ||||||
Kohl’s Corp. | 2,721 | 125,492 | ||||||
Kroger Co. | 12,629 | 477,376 | ||||||
L Brands, Inc. | 3,315 | 318,174 | ||||||
Lowe’s Cos., Inc. | 13,999 | 1,033,546 | ||||||
Macys, Inc. | 4,953 | 252,504 | ||||||
McKesson Corp. | 3,172 | 567,154 | ||||||
Michaels Cos., Inc. (a) | 437 | 10,217 | ||||||
MSC Industrial Direct Co., Inc. | 604 | 37,913 | ||||||
Nordstrom, Inc. | 2,182 | 142,288 | ||||||
Rite Aid Corp. (a) | 14,219 | 112,046 | ||||||
Ross Stores, Inc. | 5,449 | 275,610 | ||||||
Sally Beauty Holdings, Inc. (a) | 969 | 22,781 | ||||||
Signet Jewelers Ltd. | 1,092 | 164,826 | ||||||
Staples, Inc. | 8,429 | 109,493 | ||||||
Target Corp. | 9,212 | 710,982 | ||||||
Tiffany & Co. | 1,485 | 122,423 | ||||||
TJX Cos., Inc. | 8,987 | 657,759 | ||||||
Tractor Supply Co. | 1,938 | 179,052 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc. (a) | 936 | 162,827 | ||||||
Urban Outfitters, Inc. (a) | 1,559 | 44,587 | ||||||
Walgreens Boots Alliance, Inc. | 14,516 | 1,229,215 | ||||||
Wal-Mart Stores, Inc. | 24,177 | 1,383,891 |
The accompanying notes are an integral part of these financial statements.
23
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Retail Trade – 7.3% (Continued) | ||||||||
Whole Foods Market, Inc. | 4,970 | $ | 148,901 | |||||
Williams-Sonoma, Inc. | 1,000 | 73,750 | ||||||
19,974,693 | ||||||||
Transportation and Warehousing – 2.7% | ||||||||
Alaska Air Group, Inc. | 1,624 | 123,830 | ||||||
American Airlines Group, Inc. | 10,131 | 468,255 | ||||||
Carnival Corp. | 5,171 | 279,648 | ||||||
CH Robinson Worldwide, Inc. | 2,060 | 142,923 | ||||||
Columbia Pipeline Group, Inc. | 3,533 | 73,380 | ||||||
CSX Corp. | 13,040 | 351,949 | ||||||
Delta Air Lines, Inc. | 12,618 | 641,499 | ||||||
Expedia, Inc. | 1,146 | 156,200 | ||||||
Expeditors International of Washington, Inc. | 2,524 | 125,670 | ||||||
FedEx Corp. | 3,520 | 549,296 | ||||||
Genesee & Wyoming, Inc. (a) | 720 | 48,312 | ||||||
JB Hunt Transport Services, Inc. | 1,123 | 85,763 | ||||||
JetBlue Airways Corp. (a) | 2,426 | 60,262 | ||||||
Kansas City Southern | 1,571 | 130,016 | ||||||
Kirby Corp. (a) | 699 | 45,638 | ||||||
Norfolk Southern Corp. | 4,423 | 353,973 | ||||||
Norwegian Cruise Line Holdings Ltd. (a) | 418 | 26,593 | ||||||
Old Dominion Freight Line, Inc. (a) | 1,065 | 65,966 | ||||||
Royal Caribbean Cruises Ltd. | 2,454 | 241,351 | ||||||
Southwest Airlines Co. | 8,485 | 392,771 | ||||||
Union Pacific Corp. | 12,816 | 1,145,110 | ||||||
United Continental Holdings, Inc. (a) | 4,646 | 280,200 | ||||||
United Parcel Service, Inc. | 10,152 | 1,045,859 | ||||||
Williams Companies, Inc. | 11,449 | 451,548 | ||||||
7,286,012 | ||||||||
Utilities – 3.4% | ||||||||
Alliant Energy Corp. | 1,443 | 85,166 | ||||||
Ameren Corp. | 3,417 | 149,255 | ||||||
American Electric Power Co., Inc. | 7,045 | 399,099 | ||||||
American Water Works Co., Inc. | 2,587 | 148,390 | ||||||
Aqua America, Inc. | 2,354 | 67,324 |
The accompanying notes are an integral part of these financial statements.
24
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Utilities – 3.4% (Continued) | ||||||||
Atmos Energy Corp. | 1,357 | $ | 85,491 | |||||
Calpine Corp. (a) | 5,125 | 79,489 | ||||||
CenterPoint Energy, Inc. | 5,132 | 95,199 | ||||||
CMS Energy Corp. | 3,383 | 122,025 | ||||||
Consolidated Edison, Inc. | 4,259 | 280,029 | ||||||
Dominion Resources, Inc. | 8,553 | 610,941 | ||||||
DTE Energy Co. | 2,333 | 190,349 | ||||||
Duke Energy Corp. | 10,289 | 735,355 | ||||||
Edison International | 4,688 | 283,718 | ||||||
Energen Corp. | 972 | 56,522 | ||||||
Entergy Corp. | 2,265 | 154,382 | ||||||
EQT Corp. | 2,162 | 142,843 | ||||||
Eversource Energy | 4,219 | 214,916 | ||||||
Exelon Corp. | 11,451 | 319,712 | ||||||
FirstEnergy Corp. | 4,900 | 152,880 | ||||||
ITC Holdings Corp. | 2,233 | 73,064 | ||||||
Kinder Morgan, Inc. | 17,418 | 476,382 | ||||||
MDU Resources Group, Inc. | 2,619 | 49,394 | ||||||
National Fuel Gas Co. | 1,070 | 56,207 | ||||||
NextEra Energy, Inc. | 6,449 | 662,054 | ||||||
NiSource, Inc. | 4,501 | 86,239 | ||||||
NRG Energy, Inc. | 4,497 | 57,966 | ||||||
OGE Energy Corp. | 2,656 | 75,723 | ||||||
ONEOK, Inc. | 2,743 | 93,043 | ||||||
Pepco Holdings, Inc. | 3,250 | 86,547 | ||||||
PG&E Corp. | 6,271 | 334,871 | ||||||
Pinnacle West Capital Corp. | 1,438 | 91,327 | ||||||
PPL Corp. | 9,699 | 333,646 | ||||||
Public Service Enterprise Group, Inc. | 7,361 | 303,936 | ||||||
SCANA Corp. | 1,662 | 98,424 | ||||||
Sempra Energy | 3,369 | 345,019 | ||||||
Southern Co. | 13,085 | 590,133 | ||||||
Spectra Energy Corp. | 9,759 | 278,815 | ||||||
TECO Energy, Inc. | 3,136 | 84,672 | ||||||
UGI Corp. | 2,301 | 84,378 | ||||||
WEC Energy Group, Inc. | 4,107 | 211,757 |
The accompanying notes are an integral part of these financial statements.
25
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 96.4% (Continued) | ||||||||
Utilities – 3.4% (Continued) | ||||||||
Westar Energy, Inc. | 1,780 | $ | 70,666 | |||||
Xcel Energy, Inc. | 6,971 | 248,377 | ||||||
9,165,725 | ||||||||
Wholesale Trade – 2.3% | ||||||||
Acuity Brands, Inc. | 504 | 110,174 | ||||||
Airgas, Inc. | 827 | 79,524 | ||||||
AmerisourceBergen Corp. | 3,126 | 301,690 | ||||||
Arrow Electronics, Inc. (a) | 1,083 | 59,554 | ||||||
Avnet, Inc. | 1,670 | 75,868 | ||||||
Cardinal Health, Inc. | 4,750 | 390,450 | ||||||
Edgewell Personal Care Co. | 836 | 70,818 | ||||||
Fitbit, Inc. (a) | 570 | 23,108 | ||||||
Genuine Parts Co. | 2,033 | 184,515 | ||||||
HD Supply Holdings, Inc. (a) | 838 | 24,964 | ||||||
Herbalife Ltd. (a) | 888 | 49,764 | ||||||
KAR Auction Services, Inc. | 540 | 20,736 | ||||||
LKQ Corp. (a) | 3,863 | 114,383 | ||||||
O’Reilly Automotive, Inc. (a) | 1,431 | 395,328 | ||||||
Patterson Cos., Inc. | 1,104 | 52,330 | ||||||
Procter & Gamble Co. | 39,273 | 2,999,672 | ||||||
Ralph Lauren Corp. | 799 | 88,505 | ||||||
Reliance Steel & Aluminum Co. | 1,056 | 63,318 | ||||||
Schein Henry, Inc. (a) | 1,026 | 155,654 | ||||||
Sigma-Aldrich Corp. | 1,462 | 204,271 | ||||||
Sysco Corp. | 8,614 | 355,328 | ||||||
WestRock Co. | 3,023 | 162,516 | ||||||
WW Grainger, Inc. | 898 | 188,580 | ||||||
Xerox Corp. | 14,982 | 140,681 | ||||||
6,311,731 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $265,813,563) | 264,524,533 |
The accompanying notes are an integral part of these financial statements.
26
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
REAL ESTATE INVESTMENT TRUSTS – 3.2% | ||||||||
Accommodation and Food Services – 0.1% | ||||||||
Host Hotels & Resorts, Inc. | 11,596 | $ | 200,959 | |||||
Agriculture, Forestry, | ||||||||
Fishing and Hunting – 0.0% (b) | ||||||||
Plum Creek Timber Co., Inc. | 2,506 | 102,094 | ||||||
Administrative, Support & Waste Management | ||||||||
& Remediation Services – 0.0% (b) | ||||||||
Corrections Corp. of America | 1,233 | 35,140 | ||||||
Finance and Insurance – 0.7% | ||||||||
American Capital Agency Corp. | 4,806 | 85,691 | ||||||
Camden Property Trust | 1,327 | 97,919 | ||||||
DDR Corp. | 4,916 | 82,589 | ||||||
Federal Realty Investment Trust | 1,051 | 150,808 | ||||||
Kimco Realty Corp. | 6,315 | 169,053 | ||||||
Macerich Co. | 2,421 | 205,156 | ||||||
Omega Healthcare Investors, Inc. | 2,344 | 80,915 | ||||||
Realty Income Corp. | 2,886 | 142,742 | ||||||
Simon Property Group, Inc. | 4,736 | 954,115 | ||||||
Spirit Realty Capital, Inc. | 5,477 | 55,756 | ||||||
Weingarten Realty Investors | 1,875 | 67,050 | ||||||
2,091,794 | ||||||||
Information – 0.2% | ||||||||
Crown Castle International Corp. | 4,395 | 375,597 | ||||||
Equinix, Inc. | 726 | 215,390 | ||||||
590,987 | ||||||||
Manufacturing – 0.2% | ||||||||
Weyerhaeuser Co. | 6,992 | 205,075 | ||||||
Professional, Scientific, | ||||||||
and Technical Services – 0.0% (b) | ||||||||
Lamar Advertising Co. | 960 | 54,173 | ||||||
Real Estate, Rental and Leasing – 2.0% | ||||||||
Alexandria Real Estate Equities, Inc. | 1,025 | 91,983 | ||||||
American Campus Communities, Inc. | 1,717 | 69,659 | ||||||
American Tower Corp. | 6,111 | 624,727 |
The accompanying notes are an integral part of these financial statements.
27
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
REAL ESTATE INVESTMENT | ||||||||
TRUSTS – 3.2% (Continued) | ||||||||
Real Estate, Rental and Leasing – 2.0% (Continued) | ||||||||
Annaly Capital Management, Inc. | 12,911 | $ | 128,464 | |||||
Apartment Investment & Management Co. | 2,392 | 93,742 | ||||||
AvalonBay Communities, Inc. | 2,021 | 353,331 | ||||||
Boston Properties, Inc. | 2,345 | 295,118 | ||||||
Brixmor Property Group, Inc. | 1,456 | 37,303 | ||||||
Digital Realty Trust, Inc. | 1,973 | 145,923 | ||||||
Duke Realty Corp. | 5,277 | 109,234 | ||||||
Equity Residential | 5,569 | 430,595 | ||||||
Essex Property Trust, Inc. | 996 | 219,558 | ||||||
Extra Space Storage, Inc. | 1,967 | 155,865 | ||||||
General Growth Properties, Inc. | 5,964 | 172,658 | ||||||
HCP, Inc. | 7,053 | 262,372 | ||||||
Kilroy Realty Corp. | 1,322 | 87,040 | ||||||
Liberty Property Trust | 2,279 | 77,532 | ||||||
Mid-America Apartment Communities, Inc. | 1,152 | 98,139 | ||||||
Prologis, Inc. | 7,839 | 334,960 | ||||||
Public Storage | 2,222 | 509,860 | ||||||
Regency Centers Corp. | 1,440 | 97,862 | ||||||
Senior Housing Properties Trust | 3,597 | 54,638 | ||||||
SL Green Realty Corp. | 1,509 | 178,998 | ||||||
Taubman Centers, Inc. | 969 | 74,594 | ||||||
UDR, Inc. | 3,961 | 136,496 | ||||||
Ventas, Inc. | 5,064 | 272,038 | ||||||
VEREIT, Inc. | 12,057 | 99,591 | ||||||
Vornado Realty Trust | 2,876 | 289,182 | ||||||
5,501,462 | ||||||||
Transportation and Warehousing – 0.0% (b) | ||||||||
Iron Mountain, Inc. | 2,476 | 75,865 | ||||||
TOTAL REAL ESTATE INVESTMENT TRUSTS | ||||||||
(Cost $8,923,061) | 8,857,549 |
The accompanying notes are an integral part of these financial statements.
28
Pacer Trendpilot™ 750 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
SHORT-TERM INVESTMENTS – 18.0% | ||||||||
MONEY MARKET FUNDS – 18.0% | ||||||||
Fidelity Institutional Money Market Funds – | ||||||||
Money Market Portfolio, 0.12% (a) | 49,399,212 | $ | 49,399,212 | |||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(Cost $49,399,212) | 49,399,212 | |||||||
TOTAL INVESTMENTS | ||||||||
(Cost $324,263,152) – 117.7% | 322,907,752 | |||||||
Liabilities in Excess of Other Assets – (17.7)% | (48,499,862 | ) | ||||||
TOTAL NET ASSETS – 100.0% | $ | 274,407,890 |
ADR | American Depositary Receipt | |
PLC | Public Limited Company | |
(a) | Non-income producing security. | |
(b) | Less than 0.05%. | |
(c) | Rate disclosed is the seven day yield as of October 31, 2015. |
For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or they may be defined by Fund management. This definition may not apply for purposes of this report, which may combine sub-classifications for reporting ease. Categories are shown as a percentage of net assets.
The accompanying notes are an integral part of these financial statements.
29
Pacer Trendpilot™ 450 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited)
Principal | ||||||||
Amount | Value | |||||||
SHORT-TERM INVESTMENTS – 108.8% | ||||||||
U.S. TREASURY BILLS – 89.5% | ||||||||
0.000%, 12/03/2015 (a) | $ | 5,000,000 | $ | 4,999,911 | ||||
0.000%, 12/10/2015 (a) | 40,475,000 | 40,474,123 | ||||||
0.000%, 12/17/2015 (a) | 16,442,000 | 16,442,315 | ||||||
0.000%, 12/31/2015 (a) | 22,647 | 22,645,324 | ||||||
0.000%, 01/14/2016 (a) | 7,222,000 | 7,220,881 | ||||||
0.000%, 01/28/2016 (a) | 10,000,000 | 9,998,130 | ||||||
TOTAL U.S. TREASURY BILLS | ||||||||
(Cost $101,785,179) | 101,780,684 | |||||||
Shares | ||||||||
MONEY MARKET FUNDS – 19.3% | ||||||||
Fidelity Institutional Money Market Funds – | ||||||||
Money Market Portfolio, 0.12% (b) | 21,948,473 | 21,948,473 | ||||||
TOTAL MONEY MARKET FUNDS | ||||||||
(Cost $21,948,473) | 21,948,473 | |||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(Cost $123,733,652) | 123,729,157 | |||||||
TOTAL INVESTMENTS | ||||||||
(Cost $123,733,652) – 108.8% | 123,729,157 | |||||||
Liabilities in Excess of Other Assets – (8.8)% | (10,052,235 | ) | ||||||
TOTAL NET ASSETS – 100.0% | $ | 113,676,922 |
(a) | Non-income producing security. | |
(b) | Rate disclosed is the seven day yield as of October 31, 2015. |
For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or they may be defined by Fund management. This definition may not apply for purposes of this report, which may combine sub-classifications for reporting ease. Categories are shown as a percentage of net assets.
The accompanying notes are an integral part of these financial statements.
30
Pacer Trendpilot™ 100 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 99.9% | ||||||||
Accommodation and Food Services – 2.1% | ||||||||
Marriott International, Inc. | 3,081 | $ | 236,559 | |||||
Starbucks Corp. | 17,212 | 1,076,955 | ||||||
1,313,514 | ||||||||
Administrative and Support and Waste | ||||||||
Management and Remediation Services – 2.3% | ||||||||
Akamai Technologies, Inc. (a) | 2,072 | 126,019 | ||||||
Paychex, Inc. | 4,188 | 216,017 | ||||||
Stericycle, Inc. (a) | 982 | 119,185 | ||||||
The Priceline Group, Inc. (a) | 589 | 856,548 | ||||||
TripAdvisor, Inc. (a) | 1,522 | 127,513 | ||||||
1,445,282 | ||||||||
Arts, Entertainment, and Recreation – 0.1% | ||||||||
Wynn Resorts Ltd | 1,177 | 82,331 | ||||||
Finance and Insurance – 0.2% | ||||||||
Verisk Analytics, Inc. (a) | 1,952 | 139,783 | ||||||
Information – 34.1% | ||||||||
Adobe Systems, Inc. (a) | 5,770 | 511,568 | ||||||
Alphabet, Inc. – Class C (a) | 3,361 | 2,478,368 | ||||||
Alphabet, Inc. – Class A (a) | 3,987 | 2,833,999 | ||||||
Autodesk, Inc. (a) | 2,621 | 144,653 | ||||||
Automatic Data Processing, Inc. | 5,401 | 469,833 | ||||||
CA, Inc. | 5,116 | 141,764 | ||||||
Charter Communications, Inc. – Class A (a) | 1,297 | 247,649 | ||||||
Check Point Software Technologies Ltd. (a) | 2,096 | 178,034 | ||||||
Citrix Systems, Inc. (a) | 1,864 | 153,034 | ||||||
Comcast Corp. – Class A | 24,523 | 1,535,630 | ||||||
Comcast Corp. – Special Class A | 4,270 | 267,772 | ||||||
Discovery Communications, Inc. – Class A (a) | 1,731 | 50,961 | ||||||
Discovery Communications, Inc. – Class C (a) | 3,179 | 87,486 | ||||||
DISH Network Corp. (a) | 2,605 | 164,037 | ||||||
Electronic Arts, Inc. (a) | 3,615 | 260,533 | ||||||
Facebook, Inc. (a) | 26,204 | 2,672,022 | ||||||
Fiserv, Inc. (a) | 2,719 | 262,411 | ||||||
Intuit, Inc. | 3,197 | 311,484 |
The accompanying notes are an integral part of these financial statements.
31
Pacer Trendpilot™ 100 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 99.9% (Continued) | ||||||||
Information – 34.1% (Continued) | ||||||||
JD.com, Inc. – ADR (a) | 9,398 | $ | 259,573 | |||||
Liberty Global PLC – Class C (a) | 7,092 | 302,403 | ||||||
Liberty Global PLC – Class A (a) | 2,926 | 130,265 | ||||||
Liberty Global PLC LiLAC – Class C (a) | 356 | 13,763 | ||||||
Liberty Global PLC LiLAC – Class A (a) | 146 | 5,639 | ||||||
Liberty Interactive Corp./QVC Group (a) | 5,005 | 136,987 | ||||||
Liberty Media Corp. – Class A (a) | 1,182 | 48,178 | ||||||
Liberty Media Corp. – Class C (a) | 2,593 | 101,516 | ||||||
Liberty Ventures (a) | 1,563 | 68,100 | ||||||
Microsoft Corp. | 92,750 | 4,882,360 | ||||||
Netflix, Inc. (a) | 4,940 | 535,397 | ||||||
SBA Communications Corp. (a) | 1,480 | 176,150 | ||||||
Sirius XM Holdings, Inc. (a) | 61,731 | 251,862 | ||||||
Symantec Corp. | 7,935 | 163,461 | ||||||
Twenty First Century Fox, Inc. – Class B | 9,261 | 285,980 | ||||||
Twenty First Century Fox, Inc. | 14,159 | 434,540 | ||||||
Viacom, Inc. | 4,029 | 198,670 | ||||||
VimpelCom Ltd. – ADR | 20,373 | 77,010 | ||||||
Vodafone Group PLC – ADR | 4,623 | 152,420 | ||||||
20,995,512 | ||||||||
Manufacturing – 40.6% | ||||||||
Activision Blizzard, Inc. | 8,454 | 293,861 | ||||||
Alexion Pharmaceuticals, Inc. (a) | 2,621 | 461,296 | ||||||
Analog Devices, Inc. | 3,636 | 218,596 | ||||||
Apple, Inc. | 66,131 | 7,902,655 | ||||||
Applied Materials, Inc. | 13,922 | 233,472 | ||||||
Avago Technologies Ltd. | 3,011 | 370,744 | ||||||
BioMarin Pharmaceutical, Inc. (a) | 1,869 | 218,748 | ||||||
Broadcom Corp. | 6,481 | 333,123 | ||||||
Celgene Corp. (a) | 9,168 | 1,125,005 | ||||||
Cisco Systems, Inc. | 58,978 | 1,701,515 | ||||||
Garmin Ltd. | 2,212 | 78,460 | ||||||
Gilead Sciences, Inc. | 17,019 | 1,840,264 | ||||||
Illumina, Inc. (a) | 1,678 | 240,424 | ||||||
Intel Corp. | 55,131 | 1,866,736 | ||||||
Intuitive Surgical, Inc. (a) | 428 | 212,545 |
The accompanying notes are an integral part of these financial statements.
32
Pacer Trendpilot™ 100 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 99.9% (Continued) | ||||||||
Manufacturing – 40.6% (Continued) | ||||||||
Keurig Green Mountain, Inc. | 1,786 | $ | 90,640 | |||||
KLA-Tencor Corp. | 1,827 | 122,628 | ||||||
Lam Research Corp. | 1,834 | 140,466 | ||||||
Linear Technology Corp. | 2,781 | 123,532 | ||||||
Mattel, Inc. | 3,926 | 96,501 | ||||||
Micron Technology, Inc. (a) | 12,562 | 208,027 | ||||||
Mondelez International, Inc. | 18,686 | 862,546 | ||||||
Monster Beverage Corp. (a) | 2,383 | 324,851 | ||||||
Mylan NV (a) | 5,700 | 251,313 | ||||||
NetApp, Inc. | 3,479 | 118,286 | ||||||
NVIDIA Corp. | 6,251 | 177,341 | ||||||
NXP Semiconductors NV (a) | 2,918 | 228,625 | ||||||
PACCAR, Inc. | 4,117 | 216,760 | ||||||
QUALCOMM, Inc. | 18,219 | 1,082,573 | ||||||
Regeneron Pharmaceuticals, Inc. (a) | 1,179 | 657,163 | ||||||
SanDisk Corp. | 2,369 | 182,413 | ||||||
Seagate Technology PLC | 3,503 | 133,324 | ||||||
Skyworks Solutions, Inc. | 2,210 | 170,700 | ||||||
Tesla Motors, Inc. (a) | 1,507 | 311,844 | ||||||
Texas Instruments, Inc. | 11,901 | 675,025 | ||||||
The Kraft Heinz Co. | 14,064 | 1,096,570 | ||||||
Vertex Pharmaceuticals, Inc. (a) | 2,838 | 354,012 | ||||||
Western Digital Corp. | 2,670 | 178,409 | ||||||
Xilinx, Inc. | 3,000 | 142,860 | ||||||
25,043,853 | ||||||||
Professional, Scientific, | ||||||||
and Technical Services – 6.8% | ||||||||
Amgen, Inc. | 8,791 | 1,390,560 | ||||||
Baidu, Inc. – ADR (a) | 3,212 | 602,154 | ||||||
Biogen, Inc. (a) | 2,725 | 791,640 | ||||||
Cerner Corp. (a) | 4,000 | 265,160 | ||||||
Cognizant Technology Solutions Corp. – Class A (a) | 7,069 | 481,469 | ||||||
Incyte Corp. (a) | 2,092 | 245,873 | ||||||
Yahoo!, Inc. (a) | 10,916 | 388,828 | ||||||
4,165,684 |
The accompanying notes are an integral part of these financial statements.
33
Pacer Trendpilot™ 100 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
COMMON STOCKS – 99.9% (Continued) | ||||||||
Retail Trade – 12.0% | ||||||||
Amazon.com, Inc. (a) | 5,422 | $ | 3,393,630 | |||||
Bed Bath & Beyond, Inc. (a) | 1,967 | 117,292 | ||||||
Costco Wholesale Corp. | 5,096 | 805,780 | ||||||
Dollar Tree, Inc. (a) | 2,720 | 178,133 | ||||||
eBay, Inc. (a) | 14,126 | 394,116 | ||||||
Express Scripts Holding Co. (a) | 7,836 | 676,874 | ||||||
Fastenal Co. | 3,364 | 131,734 | ||||||
Ross Stores, Inc. | 4,771 | 241,317 | ||||||
Staples, Inc. | 7,461 | 96,918 | ||||||
Tractor Supply Co. | 1,575 | 145,514 | ||||||
Walgreens Boots Alliance, Inc. | 12,665 | 1,072,472 | ||||||
Whole Foods Market, Inc. | 4,148 | 124,274 | ||||||
7,378,054 | ||||||||
Transportation and Warehousing – 0.9% | ||||||||
American Airlines Group, Inc. | 7,791 | 360,100 | ||||||
CH Robinson Worldwide, Inc. | 1,643 | 113,991 | ||||||
Expeditors International of Washington, Inc. | 2,193 | 109,190 | ||||||
583,281 | ||||||||
Wholesale Trade – 0.8% | ||||||||
O’Reilly Automotive, Inc. (a) | 1,153 | 318,528 | ||||||
Schein Henry, Inc. (a) | 967 | 146,703 | ||||||
465,231 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $59,797,606) | 61,612,525 |
The accompanying notes are an integral part of these financial statements.
34
Pacer Trendpilot™ 100 ETF
SCHEDULE OF INVESTMENTS
October 31, 2015 (Unaudited) (Continued)
Shares | Value | |||||||
SHORT-TERM INVESTMENTS – 0.1% | ||||||||
MONEY MARKET FUNDS – 0.1% | ||||||||
Fidelity Institutional Money Market Funds – | ||||||||
Money Market Portfolio, 0.12% (c) | 40,510 | $ | 40,510 | |||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(Cost $40,510) | 40,510 | |||||||
TOTAL INVESTMENTS | ||||||||
(Cost $59,838,116) – 100.0% | 61,653,035 | |||||||
Liabilities in Excess of Other Assets – 0.0% (b) | (21,695 | ) | ||||||
TOTAL NET ASSETS – 100.0% | $ | 61,631,340 |
ADR | American Depositary Receipt | |
PLC | Public Limited Company | |
(a) | Non-income producing security. | |
(b) | Less than 0.05%. | |
(c) | Rate disclosed is the seven day yield as of October 31, 2015. |
For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or they may be defined by Fund management. This definition may not apply for purposes of this report, which may combine sub-classifications for reporting ease. Categories are shown as a percentage of net assets.
The accompanying notes are an integral part of these financial statements.
35
Pacer Funds
STATEMENTS OF ASSETS & LIABILITIES
October 31, 2015 (Unaudited)
Pacer | Pacer | Pacer | ||||||||||
Trendpilot™ | Trendpilot™ | Trendpilot™ | ||||||||||
750 ETF | 450 ETF | 100 ETF | ||||||||||
ASSETS | ||||||||||||
Investments in Securities, at Value* | $ | 322,907,752 | $ | 123,729,157 | $ | 61,653,035 | ||||||
Cash | 1,178,570 | — | — | |||||||||
Interest and Dividends Receivable | 18,336 | 1,905 | 9,065 | |||||||||
Receivable for Fund Shares Sold | — | — | 65 | |||||||||
Receivable for Investments Sold | 226,481,924 | — | — | |||||||||
Total Assets | 550,586,582 | 123,731,062 | 61,662,165 | |||||||||
LIABILITIES | ||||||||||||
Due to Custodian | — | — | 64 | |||||||||
Payable for Investment | ||||||||||||
Securities Purchased | 276,042,509 | 9,998,750 | — | |||||||||
Management Fees Payable | 136,183 | 55,390 | 30,761 | |||||||||
Total Liabilities | 276,178,692 | 10,054,140 | 30,825 | |||||||||
NET ASSETS | $ | 274,407,890 | $ | 113,676,922 | $ | 61,631,340 | ||||||
NET ASSETS CONSIST OF: | ||||||||||||
Paid-in Capital | $ | 286,329,135 | $ | 118,917,300 | $ | 62,809,690 | ||||||
Undistributed Accumulated Net | ||||||||||||
Investment Loss | (168,825 | ) | (69,535 | ) | (28,651 | ) | ||||||
Accumulated Net Realized Loss | ||||||||||||
on Investments | (10,397,020 | ) | (5,166,348 | ) | (2,964,618 | ) | ||||||
Net Unrealized Appreciation | ||||||||||||
(Depreciation) on: | ||||||||||||
Investments in Securities | (1,355,400 | ) | (4,495 | ) | 1,814,919 | |||||||
Net Assets | $ | 274,407,890 | $ | 113,676,922 | $ | 61,631,340 | ||||||
* Identified Cost: | ||||||||||||
Investments in Securities | $ | 324,263,152 | $ | 123,733,652 | $ | 59,838,116 | ||||||
Net Asset Value (unlimited | ||||||||||||
shares authorized): | ||||||||||||
Net Assets | $ | 274,407,890 | $ | 113,676,922 | $ | 61,631,340 | ||||||
Shares Outstanding (No Par Value) | 11,700,000 | 4,900,000 | 2,550,000 | |||||||||
Net Asset Value, Offering and | ||||||||||||
Redemption Price per Share | $ | 23.45 | $ | 23.20 | $ | 24.17 |
The accompanying notes are an integral part of these financial statements.
36
Pacer Funds
STATEMENTS OF OPERATIONS
Period Ended October 31, 2015 (Unaudited)
Pacer | Pacer | Pacer | ||||||||||
Trendpilot™ | Trendpilot™ | Trendpilot™ | ||||||||||
750 ETF* | 450 ETF* | 100 ETF* | ||||||||||
INVESTMENT INCOME | ||||||||||||
Income: | ||||||||||||
Dividends (net of foreign withholding | ||||||||||||
tax of $209, $21 and | ||||||||||||
$—, respectively) | $ | 703,567 | $ | 194,478 | $ | 118,612 | ||||||
Interest | 11,922 | 4,661 | 2,533 | |||||||||
Total Investment Income | 715,489 | 199,139 | 121,145 | |||||||||
Expenses: | ||||||||||||
Management Fees | 470,486 | 194,181 | 100,432 | |||||||||
Total Expenses | 470,486 | 194,181 | 100,432 | |||||||||
Net Investment Income | 245,003 | 4,958 | 20,713 | |||||||||
REALIZED AND UNREALIZED | ||||||||||||
GAIN (LOSS) ON INVESTMENTS | ||||||||||||
Net Realized Loss on: | ||||||||||||
Investment Securities | (10,397,020 | ) | (5,166,348 | ) | (2,964,618 | ) | ||||||
Net Change in Unrealized | ||||||||||||
Appreciation (Depreciation) of: | ||||||||||||
Investments in Securities | (1,355,400 | ) | (4,495 | ) | 1,814,919 | |||||||
Net Realized and Unrealized | ||||||||||||
Loss on Investments | (11,752,420 | ) | (5,170,843 | ) | (1,149,699 | ) | ||||||
NET DECREASE IN | ||||||||||||
NET ASSETS RESULTING | ||||||||||||
FROM OPERATIONS | $ | (11,507,417 | ) | $ | (5,165,885 | ) | $ | (1,128,986 | ) |
* | Funds commenced operations on June 12, 2015. The information presented is from June 12, 2015 to October 31, 2015. |
The accompanying notes are an integral part of these financial statements.
37
Pacer Trendpilot™ 750 ETF
STATEMENT OF CHANGES IN NET ASSETS
Period Ended | ||||
October 31, 2015* | ||||
(Unaudited) | ||||
OPERATIONS | ||||
Net Investment Income | $ | 245,003 | ||
Net Realized Loss on Investments | (10,397,020 | ) | ||
Change in unrealized Depreciation of Investments | (1,355,400 | ) | ||
Net Decrease in Net Assets | ||||
Resulting from Operations | (11,507,417 | ) | ||
DISTRIBUTIONS TO SHAREHOLDERS | ||||
From Net Investment Income | (413,828 | ) | ||
Total Distributions to Shareholders | (413,828 | ) | ||
CAPITAL SHARE TRANSACTIONS | ||||
Proceeds from Shares Sold | 322,974,700 | |||
Payments for Shares Redeemed | (36,645,565 | ) | ||
Net Increase in Net Assets Derived | ||||
from Capital Share Transactions (a) | 286,329,135 | |||
Net Increase in Net Assets | $ | 274,407,890 | ||
NET ASSETS | ||||
Beginning of Period | $ | — | ||
End of Period | $ | 274,407,890 | ||
Undistributed Accumulated Net Investment Loss | $ | (168,825 | ) |
(a) | Summary of capital share transactions is as follows: |
Shares | |||||
Subscriptions | 13,250,000 | ||||
Redemptions | (1,550,000 | ) | |||
Net Increase | 11,700,000 |
* | Funds commenced operations on June 12, 2015. The information presented is from June 12, 2015 to October 31, 2015. |
The accompanying notes are an integral part of these financial statements.
38
Pacer Trendpilot™ 450 ETF
STATEMENT OF CHANGES IN NET ASSETS
Period Ended | ||||
October 31, 2015* | ||||
(Unaudited) | ||||
OPERATIONS | ||||
Net Investment Income | $ | 4,958 | ||
Net Realized Loss on Investments | (5,166,348 | ) | ||
Change in unrealized Depreciation of Investments | (4,495 | ) | ||
Net Decrease in Net Assets | ||||
Resulting from Operations | (5,165,885 | ) | ||
DISTRIBUTIONS TO SHAREHOLDERS | ||||
From Net Investment Income | (74,493 | ) | ||
Total Distributions to Shareholders | (74,493 | ) | ||
CAPITAL SHARE TRANSACTIONS | ||||
Proceeds from Shares Sold | 137,515,260 | |||
Payments for Shares Redeemed | (18,597,960 | ) | ||
Net Increase in Net Assets Derived | ||||
from Capital Share Transactions (a) | 118,917,300 | |||
Net Increase in Net Assets | $ | 113,676,922 | ||
NET ASSETS | ||||
Beginning of Period | $ | — | ||
End of Period | $ | 113,676,922 | ||
Undistributed Accumulated Net Investment Loss | $ | (69,535 | ) |
(a) | Summary of capital share transactions is as follows: |
Shares | |||||
Subscriptions | 5,700,000 | ||||
Redemptions | (800,000 | ) | |||
Net Increase | 4,900,000 |
* | Funds commenced operations on June 12, 2015. The information presented is from June 12, 2015 to October 31, 2015. |
The accompanying notes are an integral part of these financial statements.
39
Pacer Trendpilot™ 100 ETF
STATEMENT OF CHANGES IN NET ASSETS
Period Ended | ||||
October 31, 2015* | ||||
(Unaudited) | ||||
OPERATIONS | ||||
Net Investment Income | $ | 20,713 | ||
Net Realized Loss on Investments | (2,964,618 | ) | ||
Change in unrealized Appreciation of Investments | 1,814,919 | |||
Net Decrease in Net Assets | ||||
Resulting from Operations | (1,128,986 | ) | ||
DISTRIBUTIONS TO SHAREHOLDERS | ||||
From Net Investment Income | (49,364 | ) | ||
Total Distributions to Shareholders | (49,364 | ) | ||
CAPITAL SHARE TRANSACTIONS | ||||
Proceeds from Shares Sold | 82,038,855 | |||
Payments for Shares Redeemed | (19,229,165 | ) | ||
Net Increase in Net Assets Derived | ||||
from Capital Share Transactions (a) | 62,809,690 | |||
Net Increase in Net Assets | $ | 61,631,340 | ||
NET ASSETS | ||||
Beginning of Period | $ | — | ||
End of Period | $ | 61,631,340 | ||
Undistributed Accumulated Net Investment Loss | $ | (28,651 | ) |
(a) | Summary of capital share transactions is as follows: |
Shares | |||||
Subscriptions | 3,350,000 | ||||
Redemptions | (800,000 | ) | |||
Net Increase | 2,550,000 |
* | Funds commenced operations on June 12, 2015. The information presented is from June 12, 2015 to October 31, 2015. |
The accompanying notes are an integral part of these financial statements.
40
Pacer Trendpilot™ 750 ETF
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout the period
Period Ended | ||||
October 31, 2015(1) | ||||
(Unaudited) | ||||
Net Asset Value, Beginning of Period | $ | 25.00 | ||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||
Net Investment Income(2) | 0.03 | |||
Net Realized and Unrealized Loss on Investments | (1.54 | ) | ||
Total from Investment Operations | (1.51 | ) | ||
LESS DISTRIBUTIONS: | ||||
Distributions from Net Investment Income | (0.04 | ) | ||
Total Distributions | (0.04 | ) | ||
Net Asset Value, End of Period | $ | 23.45 | ||
Total Return | -6.03 | %(3) | ||
SUPPLEMENTAL DATA: | ||||
Net Assets at End of Period (000’s) | $ | 274,408 | ||
RATIOS TO AVERAGE NET ASSETS: | ||||
Expenses to Average Net Assets | 0.60 | %(4) | ||
Net Investment Income to Average Net Assets | 0.31 | %(4) | ||
Portfolio Turnover Rate(5) | 200 | %(3) |
(1) | Commencement of operations on June 12, 2015. | |
(2) | Calculated based on average shares outstanding during the period. | |
(3) | Not annualized. | |
(4) | Annualized. | |
(5) | Excluded impact of in-kind transactions. |
The accompanying notes are an integral part of these financial statements.
41
Pacer Trendpilot™ 450 ETF
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout the period
Period Ended | ||||
October 31, 2015(1) | ||||
(Unaudited) | ||||
Net Asset Value, Beginning of Period | $ | 25.00 | ||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||
Net Investment Income(2) | 0.00 | (6) | ||
Net Realized and Unrealized Loss on Investments | (1.78 | ) | ||
Total from Investment Operations | (1.78 | ) | ||
LESS DISTRIBUTIONS: | ||||
Distributions from Net Investment Income | (0.02 | ) | ||
Total Distributions | (0.02 | ) | ||
Net Asset Value, End of Period | $ | 23.20 | ||
Total Return | -7.14 | %(3) | ||
SUPPLEMENTAL DATA: | ||||
Net Assets at End of Period (000’s) | $ | 113,677 | ||
RATIOS TO AVERAGE NET ASSETS: | ||||
Expenses to Average Net Assets | 0.60 | %(4) | ||
Net Investment Income to Average Net Assets | 0.02 | %(4) | ||
Portfolio Turnover Rate(5) | 9 | %(3) |
(1) | Commencement of operations on June 12, 2015. | |
(2) | Calculated based on average shares outstanding during the period. | |
(3) | Not annualized. | |
(4) | Annualized. | |
(5) | Excluded impact of in-kind transactions. | |
(6) | Less than $0.005. |
The accompanying notes are an integral part of these financial statements.
42
Pacer Trendpilot™ 100 ETF
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout the period
Period Ended | ||||
October 31, 2015(1) | ||||
(Unaudited) | ||||
Net Asset Value, Beginning of Period | $ | 25.00 | ||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||
Net Investment Income(2) | 0.01 | |||
Net Realized and Unrealized Loss on Investments | (0.82 | ) | ||
Total from Investment Operations | (0.81 | ) | ||
LESS DISTRIBUTIONS: | ||||
Distributions from Net Investment Income | (0.02 | ) | ||
Total Distributions | (0.02 | ) | ||
Net Asset Value, End of Period | $ | 24.17 | ||
Total Return | -3.23 | %(3) | ||
SUPPLEMENTAL DATA: | ||||
Net Assets at End of Period (000’s) | $ | 61,631 | ||
RATIOS TO AVERAGE NET ASSETS: | ||||
Expenses to Average Net Assets | 0.65 | %(4) | ||
Net Investment Income to Average Net Assets | 0.13 | %(4) | ||
Portfolio Turnover Rate(5) | 207 | %(3) |
(1) | Commencement of operations on June 12, 2015. | |
(2) | Calculated based on average shares outstanding during the period. | |
(3) | Not annualized. | |
(4) | Annualized. | |
(5) | Excluded impact of in-kind transactions. |
The accompanying notes are an integral part of these financial statements.
43
Pacer Funds
NOTES TO FINANCIAL STATEMENTS
October 31, 2015 (Unaudited)
NOTE 1 – ORGANIZATION
Pacer Trendpilot™ 750 ETF, Pacer Trendpilot™ 450 ETF and Pacer Trendpilot™ 100 ETF (individually the “Fund” or collectively the “Funds”) are each a series of Pacer Funds Trust (“Pacer”) (the “Trust”), an open-end management investment series, organized as a Delaware statutory trust on August 12, 2014. The Trust is registered with the SEC under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company and the offering of the Funds’ shares (“Shares”) is registered under the Securities Act of 1933, as amended (the “Securities Act”). The investment objectives of the Funds are to seek total return performance, before fee and expenses, track the Pacer Wilshire US Large-Cap Trendpilot Index, the Pacer Wilshire US Mid-Cap Trendpilot Index and the Pacer NASDAQ-100 Trendpilot Index, respectively. Pacer Trendpilot™ 750 ETF, Pacer Trendpilot™ 450 ETF, and Pacer Trendpilot™ 100 ETF commenced operations on June 12, 2015.
Shares of the Funds are listed and traded on the BATS Exchange, Inc. (“BATS”). Market prices for the shares may be different from their net asset value (“NAV”). The Funds issue and redeem shares on a continuous basis at NAV only in blocks of 50,000 shares, called “Creation Units.” Creation Units are issued and redeemed principally in-kind for securities included in a specified universe. Once created, Shares generally trade in the secondary market at market prices that change throughout the day in amounts less than a Creation Unit. Except when aggregated in Creation Units, Shares are not redeemable securities of a Fund. Shares of a Fund may only be purchased or redeemed by certain financial institutions (“Authorized Participants”). 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 do not qualify as Authorized Participants nor have the resources to buy and sell whole Creation Units. Therefore, they are unable to purchase or redeem the shares directly from a Fund. Rather, most retail investors may purchase Shares in the secondary market with the assistance of a broker and are subject to customary brokerage commissions or fees.
The Funds each currently offer one class of Shares, which have no front end sales loads, no deferred sales charges, and no redemption fees. A purchase (i.e., creation) transaction fee is imposed for the transfer and other transaction costs associated with the purchase of Creation Units. Pacer Trendpilot™ 750 ETF charges $1,000, Pacer Trendpilot™ 450 ETF charges $750 and Pacer Trendpilot™ 100 ETF charges $250 for the standard fixed creation fee. In addition, a variable fee may be charged on all cash transactions or substitutes for Creation Units of up to a maximum of 2% as a percentage of the value of the Creation Units subject to the transaction. Variable fees received by each Fund are displayed in the Capital Share Transaction section of the Statement of Changes in Net
44
Pacer Funds
NOTES TO FINANCIAL STATEMENTS
October 31, 2015 (Unaudited) (Continued)
Assets. Each Fund may issue an unlimited number of shares of beneficial interest, with no par value. Shares of each Fund have equal rights and privileges.
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Funds are investment companies that follow the accounting and reporting guidelines of Accounting Standards Codification Topic 946 applicable to investment companies.
A. | Investment Valuation. Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available including securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic), on which they are traded on valuation date, except for securities listed on NASDAQ Global Market (“NASDAQ”). For securities traded on NASDAQ, the NASDAQ Official Closing Price (“NOCP”) will be used. If, on a particular day, if there is no such reported sale on the valuation date, then the most recent quoted bid price will be used. If a Fund holds foreign shares of a security for which there is no reported volume, and there is an actively trading local version of the security, the last quoted sale price of the local security shall be used. Prices denominated in foreign currencies are converted to U.S. dollar equivalents at the current exchange rate, which approximates fair value. Investments in other open-end investment companies, including money market funds, are valued at the investment company’s net asset value per share, with the exception of exchange-traded open-end investment companies, which are priced as equity securities described above. Debt securities (other than short-term instruments) are valued at the mean price furnished by an independent pricing agent. Short-term securities that have maturities of less than 60 days, at the time of purchase, are valued at amortized cost, which, when combined with accrued interest, approximates market value. |
Any securities for which there are no readily available market quotations and other assets will be valued at their fair value as determined in good faith by the Fair Value Pricing Committee using the Fair Value Procedures approved by the Board of Trustees (the “Board”). | |
As described above, the Funds utilize various methods to measure the fair value of their investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuations methods. The three levels of inputs are: |
Level 1 – | Unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access. |
45
Pacer Funds
NOTES TO FINANCIAL STATEMENTS
October 31, 2015 (Unaudited) (Continued)
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 relevant observable inputs are not available; representing the Funds’ own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available. |
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. | |
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety. | |
The following is a summary of the inputs used to value the Funds’ investments as of October 31, 2015: |
Pacer Trendpilot™ 750 ETF | |||||||||||||||||
Description^ | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Closed End Funds | $ | 126,458 | $ | — | $ | — | $ | 126,458 | |||||||||
Common Stocks | 264,524,533 | — | — | 264,524,533 | |||||||||||||
Real Estate | |||||||||||||||||
Investment Trusts | 8,857,549 | — | — | 8,857,549 | |||||||||||||
Short-Term Investments | 49,399,212 | — | — | 49,399,212 | |||||||||||||
Total Investments | |||||||||||||||||
in Securities | $ | 322,907,752 | $ | — | $ | — | $ | 322,907,752 | |||||||||
^ See Schedule of Investments for sector breakouts. |
46
Pacer Funds
NOTES TO FINANCIAL STATEMENTS
October 31, 2015 (Unaudited) (Continued)
Pacer Trendpilot™ 450 ETF | |||||||||||||||||
Description^ | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Short-Term Investments | $ | 21,948,473 | $ | 101,780,684 | $ | — | $ | 123,729,157 | |||||||||
Total Investments | |||||||||||||||||
in Securities | $ | 21,948,473 | $ | 101,780,684 | $ | — | $ | 123,729,157 | |||||||||
^ See Schedule of Investments for sector breakouts. | |||||||||||||||||
Pacer Trendpilot™ 100 ETF | |||||||||||||||||
Description^ | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Common Stocks | $ | 61,612,525 | $ | — | $ | — | $ | 61,612,525 | |||||||||
Short-Term Investments | 40,510 | — | 40,510 | ||||||||||||||
Total Investments | |||||||||||||||||
in Securities | $ | 61,653,035 | $ | — | $ | — | $ | 61,653,035 | |||||||||
^ See Schedule of Investments for sector breakouts. |
Transfers between levels are recognized at the end of the reporting period. During the period ended October 31, 2015, the Funds recognized no transfers to or from Levels 1, 2, or 3. | |
B. | Federal Income Taxes. The Funds comply with the requirements of subchapter M of the Internal Revenue Code of 1986, as amended, necessary to qualify as regulated investment companies and distribute substantially all net taxable investment income and net realized gains to shareholders in a manner which results in no tax cost to the Funds. Therefore, no federal income tax provision is required. As of and during the period ended October 31, 2015, the Funds did not have any tax positions that did not meet the “more-likely-than-not” threshold of being sustained by the applicable tax authority. As of and during the period ended October 31, 2015, the Funds did not have liabilities for any unrecognized tax benefits on uncertain tax positions as income tax expense in the Statement of Operations. The Funds are subject to examination by U.S. taxing authorities for the tax periods since each Fund’s commencement of operations. |
C. | Security Transactions and Investment Income. Investment securities transactions are accounted for on the trade date. Gains and losses realized on sales of securities are computed on the basis of highest amortized cost. Dividend income is recorded on the ex-dividend date. Interest income is recorded on an accrual basis. Discounts and premiums on securities purchased are accreted and amortized over the lives of the respective securities. Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the applicable tax rules and regulations. |
D. | Distributions to Shareholders. Distributions to shareholders from net investment income for the Funds are declared and paid on a quarterly basis and net realized |
47
Pacer Funds
NOTES TO FINANCIAL STATEMENTS
October 31, 2015 (Unaudited) (Continued)
gains on securities normally are declared and paid on an annual basis. Distributions are recorded on the ex-dividend date. | |
E. | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make 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 the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. |
F. | Share Valuation. The NAV per share of each Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash and other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding for the Fund, rounded to the nearest cent. The Funds’ shares will not be priced on the days on which the BATS is closed for trading. The offering and redemption price per share for each Fund is equal to the Fund’s net asset value per share. |
G. | Guarantees and Indemnifications. In the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. Each Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote. |
I. | Reclassification of Capital Accounts. Additionally, U.S. GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. For the period ended October 31, 2015, no reclassifications have been made. |
J. | Subsequent Events. In preparing these financial statements, Management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were available to be issued. There were no events or transactions that occurred during the period subsequent to October 31, 2015, that materially impacted the amounts or disclosures in the Funds’ financial statements. |
NOTE 3 – COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
Pacer Advisors, Inc. (the “Adviser”) serves as the investment adviser to the Funds. Pursuant to an Investment Advisory Agreement (“Investment Advisory Agreement”) between the Trust, on behalf of the Funds, and the Adviser, the Adviser provides investment advice to the Funds and oversees the day-to-day operations of the Funds, subject to the direction and control of the Board and the officers of the Trust. Under the Investment Advisory Agreement, the Adviser is also responsible for arranging transfer agency, custody, fund administration and accounting, and other nondistribution related services necessary for
48
Pacer Funds
NOTES TO FINANCIAL STATEMENTS
October 31, 2015 (Unaudited) (Continued)
the Funds to operate. The Adviser administers the Funds’ business affairs, provides office facilities and equipment and certain clerical, bookkeeping and administrative services. The Adviser bears the costs of all advisory and non-advisory services required to operate the Funds, in exchange for a single unitary management fee. For services provided to the Funds, Pacer Trendpilot™ 750 ETF pays the Adviser 0.60%, Pacer Trendpilot™ 450 ETF pays the Adviser 0.60%, and Pacer Trendpilot™ 100 ETF pays the Adviser 0.65% at an annual rate based on each Fund’s average daily net assets.
Pacer Financial, Inc., (the “Distributor”) acts as the Funds’ principal underwriter in a continuous public offering of the Funds’ shares. The Distributor is an affiliate of the Adviser. The Funds did not pay any fees or commissions to the Distributor.
Certain officers and a Trustee of the Trust are affiliated with the Adviser and Distributor.
NOTE 4 – SERVICE AND CUSTODY AGREEMENTS
The Funds have entered into Service Agreements with U.S. Bancorp Fund Services, LLC (“USBFS”) and a Custody Agreement with U.S. Bank, N.A., an affiliate of USBFS. Under these agreements, USBFS and U.S. Bank, N.A. provide certain transfer agency, administrative, accounting and custody services.
NOTE 5 – INVESTMENT TRANSACTIONS
For the period ended October 31, 2015, the aggregate purchases and sales of securities by the Funds, excluding short-term securities and in-kind transactions, are as follows:
Purchases | Sales | |
Pacer Trendpilot™ 750 ETF | $276,492,810 | $232,634,234 |
Pacer Trendpilot™ 450 ETF | $ 2,246,553 | $ 96,150,783 |
Pacer Trendpilot™ 100 ETF | $ 56,768,705 | $ 62,105,819 |
For the period ended October 31, 2015, in-kind transactions associated with creations and redemptions are as follows:
Purchases | Sales | |
Pacer Trendpilot™ 750 ETF | $278,040,405 | $36,076,230 |
Pacer Trendpilot™ 450 ETF | $116,025,518 | $16,005,809 |
Pacer Trendpilot™ 100 ETF | $ 68,380,846 | $ 42,871 |
There were no purchases or sales of U.S. Government securities during the period.
NOTE 6 – DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid by the Funds during the period ended October 31, 2015 was as follows:
Ordinary Income | ||
Pacer Trendpilot™ 750 ETF | $413,828 | |
Pacer Trendpilot™ 450 ETF | $ 74,493 | |
Pacer Trendpilot™ 100 ETF | $ 49,364 |
49
Pacer Funds
ADDITIONAL INFORMATION
(Unaudited)
NOTE 1 – FREQUENCY DISTRIBUTION OF PREMIUMS AND DISCOUNTS
Closing Price vs. NAV. The following Frequency Distribution of Premiums and Discounts chart is provided to show the frequency at which the closing price for the Funds were at a premium or discount to their daily net asset value (NAV). The chart presented represents past performance and cannot be used to predict future results.
Pacer Trendpilot™ 750 ETF
Period covering June 14, 2015 through October 31, 2015
Number of | % of Total | |
Premium/Discount Range | Trading Days | Trade Days |
1.00% or more | 0 | 0.00% |
0.75% to 0.999% | 0 | 0.00% |
0.50% to 0.749% | 0 | 0.00% |
0.25% to 0.499% | 5 | 5.00% |
0.00% to 0.249% | 82 | 82.00% |
-0.001% to -0.249% | 11 | 11.00% |
-0.25% to -0.499% | 1 | 1.00% |
-0.50% to -0.749% | 0 | 0.00% |
-0.75% to -0.999% | 0 | 0.00% |
-1.00% or more | 1 | 1.00% |
100 | 100.00% | |
Pacer Trendpilot™ 450 ETF | ||
Number of | % of Total | |
Premium/Discount Range | Trading Days | Trade Days |
1.00% or more | 0 | 0.00% |
0.75% to 0.999% | 0 | 0.00% |
0.50% to 0.749% | 0 | 0.00% |
0.25% to 0.499% | 3 | 3.00% |
0.00% to 0.249% | 81 | 81.00% |
-0.001% to -0.249% | 16 | 16.00% |
-0.25% to -0.499% | 0 | 0.00% |
-0.50% to -0.749% | 0 | 0.00% |
-0.75% to -0.999% | 0 | 0.00% |
-1.00% or more | 0 | 0.00% |
100 | 100.00% |
50
Pacer Funds
ADDITIONAL INFORMATION
(Unaudited) (Continued)
Pacer Trendpilot 750 ETF
Period covering June 14, 2015 through October 31, 2015
Number of | % of Total | |
Premium/Discount Range | Trading Days | Trade Days |
1.00% or more | 1 | 1.00% |
0.75% to 0.999% | 0 | 0.00% |
0.50% to 0.749% | 0 | 0.00% |
0.25% to 0.499% | 2 | 2.00% |
0.00% to 0.249% | 85 | 85.00% |
-0.001% to -0.249% | 12 | 12.00% |
-0.25% to -0.499% | 0 | 0.00% |
-0.50% to -0.749% | 0 | 0.00% |
-0.75% to -0.999% | 0 | 0.00% |
-1.00% or more | 0 | 0.00% |
100 | 100.00% |
NOTE 2 – DISCLOSURE OF PORTFOLIO HOLDINGS
The Funds file their complete schedule 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 on the website of the SEC at http://www.sec.gov. Each Fund’s portfolio holdings are posted on their website at www.paceretfs.com daily.
NOTE 3 – PROXY VOTING POLICIES AND PROCEDURES
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 (800) 617-0004, by accessing the SEC’s website at http://www.sec.gov, or by accessing the Funds’ website at www.paceretfs.com. Information on how the Fund voted proxies relating to portfolio securities during the period ended June 30, 2015 is available without charge, upon request, by calling (800) 617-0004 or by accessing the website of the SEC.
NOTE 4 – | BOARD CONSIDERATIONS IN APPROVING THE INVESTMENT ADVISORY AGREEMENT FOR THE FUNDS |
The Board of Trustees (the “Board”) of Pacer Funds Trust (the “Trust”), including the Trustees who are not “interested persons,” as defined by the Investment Company Act of 1940, of the Trust (the “Independent Trustees”), attended in-person meetings held on May 11, 2015 and May 26, 2015 (the “Meetings”), called for the purpose of, among other things, the consideration of, and voting on, the approval of the investment advisory agreement (the “Investment Advisory Agreement”) between the Trust and Pacer Advisors, Inc. (the “Advisor”) applicable to the following series of the Trust: Pacer
51
Pacer Funds
ADDITIONAL INFORMATION
(Unaudited) (Continued)
TrendPilotTM 750 ETF, Pacer TrendpilotTM 450 ETF, Pacer TrendpilotTM 100 ETF and Pacer US Export Leaders ETF, each of which is a new series of the Trust (each, a “Fund” and together, the “Funds”). The Board unanimously approved the Investment Advisory Agreement based on the Board’s review of qualitative and quantitative information provided by the Advisor and the Trust’s other service providers.
Prior to reaching the conclusion to approve the Investment Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as the Independent Trustees deemed reasonably necessary to evaluate the terms of the Investment Advisory Agreement. In addition, the Board received a memorandum from fund counsel regarding the responsibilities of the Board with respect to the approval of investment advisory agreements. Prior to the Meetings, the Board obtained and reviewed a variety of information, including certain comparative information regarding each Fund’s proposed expenses relative to the expenses of other comparable funds. The Independent Trustees carefully evaluated this information, met in executive session outside the presence of Fund management, and were advised by independent legal counsel with respect to their deliberations.
At the Meetings, the Board, including the Independent Trustees, evaluated a number of factors, including among others: (a) the nature, extent and quality of the investment advisory and other services to be provided by the Advisor; (b) the Advisor’s investment management personnel and investment process; (c) the Advisor’s operations and financial condition; (d) the advisory fees proposed to be payable to the Advisor by each Fund and each Fund’s expected expense ratio compared with the expense ratios of similar funds; (e) the Advisor’s compliance policies and procedures; (f) the Advisor’s process for selecting broker-dealers for executing portfolio transactions; and (g) the Advisor’s reputation, expertise and resources in the financial markets. Representatives from the Advisor, along with other Trust service providers, presented additional information and participated in question and answer sessions at the Meetings to help the Board evaluate the Advisor’s services, fees and other aspects of the Investment Advisory Agreement.
In considering the approval of the Investment Advisory Agreement, the Board considered various factors that they determined were relevant, including: (i) the nature, extent and quality of the services to be provided by the Advisor; and (ii) the fees to be paid to the Advisor, as discussed in further detail below.
• | Nature, Extent and Quality of Services to be Provided by the Advisor. The Board reviewed the scope of services to be provided by the Advisor under the Investment Advisory Agreement and determined that the Advisor was capable of providing the necessary advisory services to each Fund, as indicated by the firm’s management capabilities and the professional qualifications and experience of its portfolio managers. The Board also considered other services to be provided to |
52
Pacer Funds
ADDITIONAL INFORMATION
(Unaudited) (Continued)
the Funds by the Advisor, such as selecting broker-dealers for executing portfolio transactions, monitoring adherence to the Funds’ investment restrictions, and monitoring compliance with various Fund policies and procedures and with applicable securities regulations. Based on the factors above, as well as those discussed below, the Board concluded, within the context of its full deliberations, that it was satisfied with the nature, extent and quality of the services to be provided to the Funds by the Advisor. | ||
• | Costs of Services to be Provided to the Funds. In considering the advisory fees payable by the Funds to the Advisor and each Fund’s expected expense ratio, the Board reviewed certain statistical information provided by the Advisor and the Trust’s administrator that compared each Fund’s expenses to those of comparable funds in the Fund’s peer groups, as determined by the administrator and the Advisor. In the report, each Fund’s expected expense ratio was compared to those of other funds with shared key characteristics (e.g., asset size, investment strategy and portfolio investments) determined by the administrator and Advisor to comprise the Fund’s applicable peer groups. The Board also noted that the Advisor had contractually agreed to pay all operating expenses of each Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except interest, taxes, brokerage commissions and other expenses in connection with the execution of portfolio transactions, distribution fees, and extraordinary and non-routine expenses. The Board also evaluated the compensation and benefits expected to be received by the Advisor from its relationship with the Funds, taking into account projections of the Advisor’s anticipated profitability at different asset levels. Based on the factors above, as well as those discussed below, the Board concluded, within the context of its full deliberations, that each Fund’s advisory fee was reasonable in light of the nature and quality of the services expected to be rendered by the Advisor. | |
• | Performance of each Fund, Profitability, and Economies of Scale. Because the Funds were new and had not commenced operations, they did not yet have an investment performance record for the Board to review and consider. Similarly, it was not possible for the Board to review and consider the profitability the Advisor might achieve with respect to the Funds or the extent to which economies of scale would be realized by the Advisor as the assets of the Funds grow. Accordingly, the Board did not make any conclusions regarding the Funds’ investment performance, the Advisor’s profitability, or the extent to which economies of scale would be realized by the Advisor as the assets of the Funds grow, but will do so during future considerations of the Investment Advisory Agreement. |
Based on the Board’s deliberations and its evaluation of the information described above, the Board, including the Independent Trustees, unanimously: (a) concluded that the terms of the Investment Advisory Agreement are fair and reasonable; (b) concluded that
53
Pacer Funds
ADDITIONAL INFORMATION
(Unaudited) (Continued)
the Advisor’s fees are reasonable in light of the nature and quality of the services expected to be rendered by the Advisor to the Funds; and (c) agreed to approve the Investment Advisory Agreement for an initial term of two years. In its deliberations, the Board did not identify any particular factor (or conclusion with respect thereto) or single piece of information that was all-important, controlling or determinative of its decision, but considered all of the factors together, and each Trustee may have attributed different weights to the various factors (and conclusions with respect thereto) and information.
NOTE 5 – TRUSTEES AND OFFICERS
The business of the Funds is managed under the direction of the Board of Trustees. The Board of Trustees formulates the general policies of the Funds and meets periodically to review the Funds’ performance, monitor investment activities and practices, and discuss other matters affecting the Funds. The Trustees are fiduciaries for the Funds’ shareholders and are governed by the laws of the State of Delaware in this regard. The names and addresses of the Trustees and officers of the Trust are listed below along with a description of their principal occupations over at least the last five years. There are currently four Trustees, three of whom are not “interested persons” of the Trust within the meaning of that term under the 1940 Act (“Independent Trustee”). The Trustees, in turn, elect the officers of the Trust to actively supervise its day-to-day operations. The Funds’ Statement of Additional Information includes additional information about the Trustees and is available upon request by calling toll free (800) 617-0004.
Term of | Number of | ||||
Office | Portfolios | Other | |||
and | in Fund | Directorships | |||
Position(s) | Length | Complex | Held by Trustee | ||
Name and | Held with | of Time | Principal Occupation(s) | Overseen | During Past |
Year of Birth | the Trust | Served | During Past Five Years | by Trustee | Five Years |
Interested Trustee | |||||
Joe M. Thomson | Trustee, | Indefinite | Founder/President at | 4 | Director, First |
16 Industrial Blvd., | Chairman | term; | Pacer Advisors, Inc. | Cornerstone | |
Suite 201 | and | since | (since 2005). | Bank (since | |
Paoli, PA 19301 | President | 2014 | 2000). | ||
Born: 1944 | |||||
Independent Trustees | |||||
Deborah G. Wolk | Lead | Indefinite | Self-employed | 4 | None. |
16 Industrial Blvd., | Independent | term; | providing accounting | ||
Suite 201 | Trustee | since | services and | ||
Paoli, PA 19301 | 2015 | computer modeling | |||
Born: 1950 | (since 1997). | ||||
John E. Coyne, III | Trustee | Indefinite | Vice Chairman | 4 | None. |
16 Industrial Blvd., | term; | (since 1991) and | |||
Suite 201 | since | President (2004-2011), | |||
Paoli, PA 19301 | 2015 | Brinker Capital | |||
Born: 1955 | (broker-dealer). |
54
Pacer Funds
ADDITIONAL INFORMATION
(Unaudited) (Continued)
Term of | Number of | ||||
Office | Portfolios | Other | |||
and | in Fund | Directorships | |||
Position(s) | Length | Complex | Held by Trustee | ||
Name and | Held with | of Time | Principal Occupation(s) | Overseen | During Past |
Year of Birth | the Trust | Served | During Past Five Years | by Trustee | Five Years |
Independent Trustees | |||||
Jonathan H. | Trustee | Indefinite | CEO and Chairman, | 4 | None. |
Newman, Sr. | term; | Newman Wine | |||
16 Industrial Blvd., | since | & Spirits | |||
Suite 201 | 2015 | (since 2007). | |||
Paoli, PA 19301 | |||||
Born: 1962 | |||||
Officers who are not Trustees: | |||||
Sean E. O’Hara | Treasurer | Indefinite | Director, Pacer | N/A | None. |
16 Industrial Blvd., | term; | Advisors, Inc. | |||
Suite 201 | since | (since 2007). | |||
Paoli, PA 19301 | 2014 | ||||
Born: 1962 | |||||
Robert Amweg | Chief | Indefinite | Compliance Director, | 4 | None. |
Gateway Corporate | Compliance | term; | Vigilant Compliance, | ||
Center, Suite 216 | Officer | since | LLC (an investment | ||
223 Wilmington West | 2015 | management | |||
Chester Pike | services company) | ||||
Chadds Ford, PA | (since 2013); | ||||
19317 | Consultant to the | ||||
Born: 1953 | financial services | ||||
industry (since 2012); | |||||
and Chief Financial | |||||
Officer and Chief | |||||
Accounting Officer, | |||||
Turner Investments, | |||||
LP (2007-2012). |
Mr. Thompson is an “Interested Person” by reason of his relationship with the Adviser.
Each Trustee holds office for an indefinite term and until the earlier of; the Trust’s next meeting of shareholders and the election and qualification of his or her successor; or until the date a trustee ties, resigns or is removed in accordance with the Trust’s Declaration of Trust and By-laws. Each officer holds office at the pleasure of the Board and services for a period of one year, or until his successor is duly elected and qualified. The Trustees are compensated by the Adviser from the unified management fees paid to the Adviser, rather than by the Funds.
55
Privacy Policy
FACTS | WHAT DOES PACER FUNDS TRUST DO WITH YOUR PERSONAL INFORMATION? | ||
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some, but not all information sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this Notice carefully to understand what we do. | ||
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include: | ||
• Social Security number | |||
• account balances | |||
• account transactions | |||
• transaction history | |||
• wire transfer instructions | |||
• checking account information | |||
When you are no longer our customer, we continue to share your information as described in this notice. | |||
How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Pacer Funds Trust chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does Pacer Funds | Can you limit |
Trust share? | this sharing? | |
For our everyday business purposes – | Yes | No |
such as to process your transactions, maintain your | ||
account(s), respond to court orders and legal | ||
investigations, or report to credit bureaus | ||
For our marketing purposes – | No | We don’t share |
to offer our products and services to you | ||
For joint marketing with other financial companies | No | We don’t share |
For our affiliates’ everyday business purposes – | Yes | No |
information about your transactions and experiences | ||
For our affiliates’ everyday business purposes – | No | We don’t share |
information about your creditworthiness | ||
For our affiliates to market to you | No | We don’t share |
For nonaffiliates to market to you | No | We don’t share |
Questions? | Call [1-800-617-0004] or go to [www.paceretfs.com] |
56
Privacy Policy (Continued)
What we do | |||
How does Pacer Funds Trust | To protect your personal information from | ||
protect my personal information? | unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. | ||
How does Pacer Funds Trust | We collect your personal information, | ||
collect my personal information? | for example, when you | ||
• open an account | |||
• provide account information | |||
• give us your contact information | |||
• make a wire transfer | |||
• tell us where to send the money | |||
We also collect your information from others, such as credit bureaus, affiliates, or other companies. | |||
Why can’t I limit all sharing? | Federal law gives you the right to limit only | ||
• sharing for affiliates’ everyday business purposes – information about your creditworthiness | |||
• affiliates from using your information to market to you | |||
• sharing for nonaffiliates to market to you | |||
State laws and individual companies may give you additional rights to limit sharing. | |||
Definitions | |||
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies. | ||
• Our affiliates include companies such as [____]. | |||
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies. | ||
• Pacer Funds Trust doesn’t share with nonaffiliates so they can market to you. | |||
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. | ||
• Pacer Funds Trust doesn’t jointly market. |
57
Adviser
Pacer Advisors, Inc.
16 Industrial Blvd, Suite 201
Paoli, PA 19301
Index Provider
Pacer Advisors, Inc.
16 Industrial Blvd, Suite 201
Paoli, PA 19301
Distributor
Pacer Financial, Inc.
16 Industrial Blvd, Suite 201
Paoli, PA 19301
Custodian
U.S. Bank National Association
Custody Operations
1555 North Rivercenter Drive
Milwaukee, WI 53212
Transfer Agent
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, WI 53202
Independent Registered Public Accounting Firm
Sanville & Company
1514 Old York Rd.
Abington, PA 19001
Legal Counsel
Morgan, Lewis & Bockius LLP
101 Park Avenue
New York, NY 10178
PACER | PACER | PACER | |||
TRENDPILOT™ | TRENDPILOT™ | TRENDPILOT™ | |||
750 ETF | 450 ETF | 100 ETF | |||
PTLC | PTMC | PTNQ | |||
CUSIP | CUSIP | CUSIP | |||
69374H105 | 69374H204 | 69374H303 |
![](https://capedge.com/proxy/N-CSRS/0000898531-16-000546/pacer-logo.jpg)
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 to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).
Item 6. Investments.
Schedule of Investments 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.
Not Applicable.
Item 11. Controls and Procedures.
(a) | The Registrant’s principal executive and principal financial officers have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d‑15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider. |
(b) | There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the 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) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Not applicable to semi-annual reports. |
(2) A separate certification for each principal executive and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
(3) Any written solicitation to purchase securities under Rule 23c‑1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.
(b) | Certifications pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002. Furnished herewith. |
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) Pacer Funds Trust
By (Signature and Title) /s/Joe M. Thomson
Joe M. Thomson, President (Principal Executive Officer)
Date December 31, 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/Joe M. Thomson
Joe M. Thomson, President (Principal Executive Officer)
Date December 31, 2015
By (Signature and Title) /s/Sean E. O’Hara
Sean E. O’Hara, Treasurer (Principal Financial Officer)
Date December 31, 2015