united states
securities and exchange commission
washington, d.c. 20549
form n-csr
certified shareholder report of registered management
investment companies
Investment Company Act file number 811-23066
Northern Lights Fund Trust IV
(Exact name of registrant as specified in charter)
17605 Wright Street, Omaha, Nebraska 68130
(Address of principal executive offices) (Zip code)
Wendy Wang, Gemini Fund Services, LLC.
80 Arkay Drive, Hauppauge, NY 11788
(Name and address of agent for service)
Registrant's telephone number, including area code: 631-470-2600
Date of fiscal year end: 11/30
Date of reporting period:11/30/18
Item 1. Reports to Stockholders.
Inspire Global Hope ETF (BLES)
Inspire Small/Mid Cap Impact ETF (ISMD)
Inspire Corporate Bond Impact ETF (IBD)
Inspire 100 ETF (BIBL)
Annual Report
November 30, 2018
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1-877-658-9473
www.inspireinvesting.com
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s websitewww.inspireinvesting.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by following the instructions included with paper Fund documents that have been mailed to you.
1
INSPIRE ETF ANNUAL REPORT |
SHAREHOLDER LETTER (Unaudited) |
Dear Shareholders:
We are pleased to present you with the Annual Report for the Inspire Investing suite of Exchange Traded Funds (ETFs) as of November 30, 2018.
We are exceedingly grateful to look back at the blessings and miracles that God has given to us this past year ended November 30, 2018. “I thank my God through Jesus Christ for all of you (shareholders), because your faith is being proclaimed all over the world”, Romans 1:8, by being part of the message of Biblically Responsible Investing through the Inspire ETFs. We could not do what we do without you and we sincerely appreciate the trust you have placed in Inspire by investing in one or more of our ETFs.
BLES – Inspire Global Hope ETF
For the twelve months ended 11-30-2018 BLES is down -2.36% on a price basis and -3.74% on the NAV versus the Inspire Global Hope Large Cap Equal Weight Index (BLESI) return of -2.22%.
For the six months ended 11-30-2018, BLES had a return of -5.22% on a price basis and -5.63% on the NAV versus the BLESI benchmark return of -4.60%.
Although it is disappointing to see BLES with negative performance over the past year it is in line with the overall market that has seen large pull backs in January and February of 2018 and again in October.
ISMD – Inspire Small/Mid Cap Impact ETF
For the twelve months ended 11-30-2018 ISMD has returned 1.92% on a price basis and 1.89% on the NAV versus the Inspire Small/Mid Cap Impact Equal Weight Index (ISMDI) return of 2.75%.
For the six months ended 11-30-2018, ISMD had a return of -4.57% on both a price basis and the NAV versus the ISMDI index return of -4.53%.
The small cap and mid cap markets also have had a very rough 2018 with the corrections in January/February 2018 as well as in October, so the performance of ISMD in this environment is not surprising.
For much of the past year Mid Cap and Small cap stocks trailed Large Cap stocks dramatically. In May the small cap stock started to outperform the large cap stocks but the rally faded in September to end well behind the large cap market as of November 30th. Please keep in mind that the most popular index returns are based on portfolios that are capitalization weighted while ISMD and BLES are both equally weighted.
2
IBD – Inspire Corporate Bond Impact ETF
For the twelve months ended 11-30-2018 IBD has returned -1.18% on a price basis and -0.99% on the NAV versus the Inspire Corporate Bond Impact Equal Weight Index (IBDI) return of -0.57%.
For the six months ended 11-30-2018, IBD had a return of 0.38% on a price basis and 013% on the NAV versus the IBDI index return of 0.33%.
The four interest rate increases over the past twelve months ended November 30, 2018 by the Federal Reserve have had a negative effect on the corporate bond market, manifesting in negative returns for IBD over that past year. However, with the most recent comments by Chairman Powell that the Fed Funds rate is just “below neutral” there could be an end to the rate hikes by the Fed in 2019. Even with the pattern of interest rate increases by the Federal Reserve we stand firm in our strategy to hold quality bonds across the maturity spectrum from 1 year to 10 years in an effort to maintain steady income for our shareholders and minimize the volatility.
IBD has an average credit quality of BBB+ and is 100% invested in corporate bonds (net of cash reserves) using our BRI Screening process.
BIBL – Inspire 100 ETF
For the twelve months ended 11-30-2018 BIBL has returned 3.05% on a price basis and 3.09% on the NAV versus the Inspire 100 Index (BIBLI) return of 3.89%.
For the six months ended 11-30-18 BIBL had a return of -1.25% on a price basis and -1.06% on the NAV versus the BIBLI index return of -0.78%.
BIBL has 100 US Large Cap positions that are capitalization weighted. BIBL was designed to give advisors and investors a Biblically Responsible alternative to the market cap weighted funds that are so prevalent in the market place.
Closing Comments
2018 has been a challenging and interesting year for us and we are thankful to God our Father for His provision and wisdom, as well as allowing us to be part of the mission of making a positive impact in the world through our ETFs alongside you our brothers and sisters in Christ and fellow shareholders.
The overall stock market has had a volatile year with much lower returns and in most cases negative returns as compared to 2017 as I mentioned could be expected in my letter last year. Like last year, there are still many economic and geo-political situations yet to be resolved, as well new concerns on the horizon, but God is still Sovereign, and our trust is in Him, not in politicians, economists or the markets.
Thank you again for being shareholders, but more importantly thank you for being co-workers with us in making a positive impact in the world by inspiring transformation for God’s Glory.
May the Grace and Peace of Jesus Christ our Lord be with you in 2019.
Sincerely,
Darrell Jayroe, CIO
3
Inspire InvestingInspire, the adviser, provides the index for the Inspire Funds to track. The indexes use software that analyzes publicly available data relating to the primary business activities, products and services, philanthropy, legal activities, policies and practices when assigning Inspire Impact Scores to a company. The securities with the highest Inspire Impact Scores are included in the Indexes and are equally weighted. As the Funds may not fully replicate the Index, it is subject to the risk that investment management strategy may not produce the intended results.
ETF shares are not redeemable with the issuing fund other than in large Creation Unit aggregations. Instead, investors must buy or sell ETF Shares in the secondary market with the assistance of a stockbroker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling. The Funds may focus their investments in securities of a particular industry to the extent the Index does. This may cause the Funds’ net asset value to fluctuate more than that of funds that does not focus in a particular industry.
The Funds are not actively managed and the adviser will not sell shares of an equity security due to current or projected underperformance of a security, industry or sector, unless that security is removed from the Index or the selling of shares of that security is otherwise required upon a rebalancing of the Index as addressed in the Index methodology. Tracking error may occur because of imperfect correlation between the Funds’ holdings of portfolio securities and those in the Index. The Funds’ use of a representative sampling approach, if used, could result in its holding a smaller number of securities than are in the Index. To the extent the assets in the Funds are smaller, these risks will be greater.
Before investing, consider the Funds’ investment objectives, risks, charges and expenses. To obtain a prospectus which contains this and other information, call 877.658.9473, or visit www.inspireinvesting.com. Read it carefully. The Inspire ETFs are distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC.
Inspire and Northern Lights Distributors, LLC are not affiliated. 3016-NLD-1/7/2019
4
Inspire Global Hope ETF |
PORTFOLIO REVIEW (Unaudited) |
November 30, 2018 |
The Fund’s performance figures* for the periods ended November 30, 2018, as compared to its benchmarks:
Annualized | ||
Since Inception** - | ||
One Year | November 30, 2018 | |
Inspire Global Hope ETF - NAV | (3.74)% | 4.71% |
Inspire Global Hope ETF - Market Price | (2.36)% | 5.38% |
Inspire Global Hope Large Cap Equal Weight Index *** | (2.22)% | 5.76% |
MSCI All Country World Index Net (USD) **** | (0.98)% | 7.84% |
* | The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions, if any, or the redemption of the Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by visiting www.inspireinvesting.com or by calling 1-877-658-9473. |
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. The Fund’s adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund until at least March 31, 2019 to ensure that total annual fund operating expenses after fee waiver and/or reimbursement (exclusive of any front-end or contingent deferred loads, taxes, brokerage fees and commissions, borrowing costs (such as interest and dividend expense on securities sold short), acquired fund fees and expenses, fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses), or extraordinary expenses such as litigation) will not exceed 0.61% of average daily net assets. The fee waiver and expense reimbursements are subject to possible recoupment from the Fund by the adviser in future years (within the three years after the fees have been waived or reimbursed), if such recoupment can be achieved within the lesser of the foregoing expense limits or those in place at the time of recapture. This agreement may be terminated only by the Trust’s Board of Trustees on 60 days’ written notice to the Fund’s adviser. The Fund’s total annual operating expenses (gross) are 0.75% per the April 1, 2018 prospectus.
** | As of the commencement of operations on February 27, 2017. |
*** | Inspire Global Hope Large Cap Equal Weight Index (BLESI) tracks the stock performance of 400 of the most inspiring large cap companies from around the globe, as determined by Inspire’s revolutionary Inspire Impact Score4 methodology which measures a company’s positive impact on the world. Under normal circumstances the index will be comprised of 50% US large cap companies, 40% international developed large cap companies and 10% emerging market large cap companies. Inspire defines “large cap” as a market capitalization of $5B or greater. The index is equally weighted, rebalanced quarterly and calculated on a gross total return basis in United States Dollars. |
**** | The MSCI All Country World Index Net (USD) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 44 country indexes comprising 23 developed and 21 emerging market country indexes. |
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities and therefore does not reflect deductions for fees or expenses. In comparison, a Fund’s performance is negatively impacted by these deductions. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income.
5
Inspire Global Hope ETF |
PORTFOLIO REVIEW (Unaudited)(Continued) |
November 30, 2018 |
Comparison of the Change in Value of a $10,000 Investment
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Oil, Gas & Coal | 8.3 | % | ||
Real Estate | 7.6 | % | ||
Utilities | 7.0 | % | ||
Chemicals | 5.7 | % | ||
Retail - Discretionary | 4.4 | % | ||
Banking | 4.2 | % | ||
Medical Equipment & Devices | 4.0 | % | ||
Transportation & Logistics | 3.7 | % | ||
Semiconductors | 3.6 | % | ||
Insurance | 3.4 | % | ||
Other Assets | 46.8 | % | ||
Cash & Cash Equivalents | 1.3 | % | ||
100.0 | % |
Please refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Fund’s holdings.
6
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO REVIEW (Unaudited) |
November 30, 2018 |
The Fund’s performance figures* for the periods ended November 30, 2018, as compared to its benchmarks:
Annualized | ||
Since Inception** - | ||
One Year | November 30, 2018 | |
Inspire Small/Mid Cap Impact ETF - NAV | 1.89% | 5.46% |
Inspire Small/Mid Cap Impact ETF - Market Price | 1.92% | 5.48% |
Inspire Small/Mid Cap Impact Equal Weight Index *** | 2.75% | 6.45% |
S&P 500 Total Return Index **** | 6.27% | 11.23% |
* | The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions, if any, or the redemption of the Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by visiting www.inspireinvesting.com or by calling 1-877-658-9473. |
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. The Fund’s adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund until at least March 31, 2019 to ensure that total annual fund operating expenses after fee waiver and/or reimbursement (exclusive of any front-end or contingent deferred loads, taxes, brokerage fees and commissions, borrowing costs (such as interest and dividend expense on securities sold short), acquired fund fees and expenses, fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses), or extraordinary expenses such as litigation) will not exceed 0.61% of average daily net assets. The fee waiver and expense reimbursements are subject to possible recoupment from the Fund by the adviser in future years (within the three years after the fees have been waived or reimbursed), if such recoupment can be achieved within the lesser of the foregoing expense limits or those in place at the time of recapture. This agreement may be terminated only by the Trust’s Board of Trustees on 60 days’ written notice to the Fund’s adviser. The Fund’s total annual operating expenses (gross) are 0.94% per the April 1, 2018 prospectus.
** | As of the commencement of operations on February 27, 2017. |
*** | Inspire Small/Mid Cap Impact Equal Weight Index (ISMDI) tracks the stock performance of 500 of the most inspiring small and mid cap companies in the U.S., as determined by Inspire’s revolutionary Inspire Impact Score4 methodology which measures a company’s positive impact on the world. Under normal circumstances the index will be comprised of 50% U.S. mid cap companies with market cap between $2B-3.5B, and 50% U.S. small cap companies with market cap between $1B-2B. Inspire believes that companies in this “smid cap” capitalization range have the potential to deliver above average growth. The index is equally weighted, rebalanced quarterly and calculated on a gross total return basis in United States Dollars. |
**** | The S&P 500 Total Return Index is an unmanaged market capitalization-weighted index which is comprised of 500 of the largest U.S. domiciled companies and includes the reinvestment of all dividends. Investors cannot invest directly in an index or benchmark. |
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities and therefore does not reflect deductions for fees or expenses. In comparison, a Fund’s performance is negatively impacted by these deductions. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income.
7
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO REVIEW (Unaudited)(Continued) |
November 30, 2018 |
Comparison of the Change in Value of a $10,000 Investment
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Banking | 9.7 | % | ||
Real Estate | 6.8 | % | ||
Oil, Gas & Coal | 6.1 | % | ||
Biotech & Pharma | 6.0 | % | ||
Software | 5.0 | % | ||
Utilities | 4.4 | % | ||
Semiconductors | 4.4 | % | ||
Medical Equipment & Devices | 4.1 | % | ||
Consumer Products | 3.2 | % | ||
Chemicals | 3.2 | % | ||
Other Assets | 44.9 | % | ||
Cash & Cash Equivalents | 2.2 | % | ||
100.0 | % |
Please refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Fund’s holdings.
8
Inspire Corporate Bond Impact ETF |
PORTFOLIO REVIEW (Unaudited) |
November 30, 2018 |
The Fund’s performance figures* for the periods ended November 30, 2018, as compared to its benchmarks:
Annualized | ||
Since Inception** - | ||
One Year | November 30, 2018 | |
Inspire Corporate Bond Impact ETF - NAV | (0.99)% | (0.45)% |
Inspire Corporate Bond Impact ETF - Market Price | (1.18)% | (0.19)% |
Inspire Corporate Bond Impact Equal Weight Index *** | (0.57)% | 0.32% |
Bloomberg Barclays U.S. Aggregate Bond Index **** | (1.34)% | (0.26)% |
* | The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions, if any, or the redemption of the Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by visiting www.inspireinvesting.com or by calling 1-877-658-9473. |
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. The Fund’s adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund until at least March 31, 2019 to ensure that total annual fund operating expenses after fee waiver and/or reimbursement (exclusive of any front-end or contingent deferred loads, taxes, brokerage fees and commissions, borrowing costs (such as interest and dividend expense on securities sold short), acquired fund fees and expenses, fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses), or extraordinary expenses such as litigation) will not exceed 0.61% of average daily net assets. The fee waiver and expense reimbursements are subject to possible recoupment from the Fund by the adviser in future years (within the three years after the fees have been waived or reimbursed), if such recoupment can be achieved within the lesser of the foregoing expense limits or those in place at the time of recapture. This agreement may be terminated only by the Trust’s Board of Trustees on 60 days’ written notice to the Fund’s adviser. The Fund’s total annual operating expenses (gross) are 1.51% per the April 1, 2018 prospectus.
** | As of the commencement of operations on July 10, 2017. |
*** | Inspire Corporate Bond Impact Equal Weight Index (IBDI) is comprised of 250 investment grade, intermediate term corporate bonds issued by some of the most inspiring large cap “blue chip” companies in the United States, as determined by Inspire’s revolutionary Inspire Impact Score methodology which measures a company’s positive impact on the world. Inspire defines “large cap” as a market capitalization of $5B or greater and “investment grade” as BBB-/Baa3 or higher. The index is equally weighted, rebalanced quarterly and calculated on a total return basis in US Dollars. |
**** | The Bloomberg Barclays U.S. Aggregate Bond Index is commonly used as a benchmark by both passive and active investors to measure portfolio performance relative to the U.S. dollar-denominated investment grade fixed-rate taxable bond market. It is also an informational measure of broad market returns commonly applied to fixed income instruments. The index contains approximately 10,100 fixed income issues and is valued at around $20 trillion, representing 43% of the total U.S. bond market. |
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities and therefore does not reflect deductions for fees or expenses. In comparison, a Fund’s performance is negatively impacted by these deductions. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income.
9
Inspire Corporate Bond Impact ETF |
PORTFOLIO REVIEW (Unaudited)(Continued) |
November 30, 2018 |
Comparison of the Change in Value of a $10,000 Investment
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Real Estate | 17.1 | % | ||
Utilities | 10.9 | % | ||
Retail - Consumer Discretionary | 7.9 | % | ||
Exploration & Production | 7.4 | % | ||
Railroad | 4.8 | % | ||
Machinery Manufacturing | 4.7 | % | ||
Healthcare Facilities & Services | 4.0 | % | ||
Food & Beverage | 3.7 | % | ||
Refining & Marketing | 3.5 | % | ||
Pipeline | 3.3 | % | ||
Other Assets | 31.2 | % | ||
Cash & Cash Equivalents | 1.5 | % | ||
100.0 | % |
Please refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Fund’s holdings.
10
Inspire 100 ETF |
PORTFOLIO REVIEW (Unaudited) |
November 30, 2018 |
The Fund’s performance figures* for the periods ended November 30, 2018, as compared to its benchmarks:
Annualized | ||
Since Inception** - | ||
One Year | November 30, 2018 | |
Inspire 100 ETF - NAV | 3.09% | 5.46% |
Inspire 100 ETF - Market Price | 3.05% | 5.46% |
Inspire 100 Market Cap Weight Index *** | 3.89% | 6.20% |
S&P 500 Total Return Index **** | 6.72% | 8.85% |
* | The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions, if any, or the redemption of the Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by visiting www.inspireinvesting.com or by calling 1-877-658-9473. |
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. The Fund’s adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund until at least March 31, 2019 to ensure that total annual fund operating expenses after fee waiver and/or reimbursement (exclusive of any front-end or contingent deferred loads, taxes, brokerage fees and commissions, borrowing costs (such as interest and dividend expense on securities sold short), acquired fund fees and expenses, fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses), or extraordinary expenses such as litigation) will not exceed 0.35% of average daily net assets. This fee waiver and expense reimbursement is subject to possible recoupment from the Fund if such recoupment does not cause the Fund’s expense ratio (after the repayment is taken into account) to exceed both: (i) the Fund’s expense cap in place at the time such expenses were waived, and (ii) the Fund’s current expense cap at the time of recoupment. This agreement may be terminated only by the Trust’s Board of Trustees on 60 days’ written notice to the Fund’s adviser. The Fund’s total annual operating expenses (gross) are 3.78% per the April 1, 2018 prospectus.
** | As of the commencement of operations on October 30, 2017. |
*** | The Inspire 100 Market Cap Weight Index is a rules based, passive index which tracks the stock performance of the one-hundred highest Inspire Impact Scoring companies in the United States with market capitalizations above $20B. The index is market-cap weighted, rebalanced annually and calculated on a total return basis in U.S. Dollars. |
**** | The S&P 500 Total Return Index is an unmanaged market capitalization-weighted index which is comprised of 500 of the largest U.S. domiciled companies and includes the reinvestment of all dividends. Investors cannot invest directly in an index or benchmark. |
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities and therefore does not reflect deductions for fees or expenses. In comparison, a Fund’s performance is negatively impacted by these deductions. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income.
Comparison of the Change in Value of a $10,000 Investment
11
Inspire 100 ETF |
PORTFOLIO REVIEW (Unaudited)(Continued) |
November 30, 2018 |
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Electrical Equipment | 9.8 | % | ||
Real Estate | 9.7 | % | ||
Biotech & Pharma | 8.4 | % | ||
Semiconductors | 7.4 | % | ||
Oil, Gas & Coal | 7.2 | % | ||
Utilities | 7.1 | % | ||
Healthcare Facilities & Services | 5.1 | % | ||
Machinery | 4.7 | % | ||
Transportation & Logistics | 4.1 | % | ||
Technology Services | 3.7 | % | ||
Other Assets | 32.0 | % | ||
Cash & Cash Equivalents | 0.8 | % | ||
100.0 | % |
Please refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Fund’s holdings.
12
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS |
November 30, 2018 |
Shares | Value | |||||||
COMMON STOCKS - 98.2% | ||||||||
AEROSPACE & DEFENSE - 1.0% | ||||||||
1,544 | General Dynamics Corp. | $ | 285,470 | |||||
1,925 | Harris Corp. | 275,179 | ||||||
1,526 | L3 Technologies, Inc. | 279,701 | ||||||
840,350 | ||||||||
APPAREL & TEXTILE PRODUCTS - 1.1% | ||||||||
3,614 | Cie Financiere Richemont SA | 234,773 | ||||||
4,349 | Michael Kors Holdings Ltd. * | 190,269 | ||||||
768 | Swatch Group AG | 228,475 | ||||||
3,427 | VF Corp. | 278,581 | ||||||
932,098 | ||||||||
ASSET MANAGEMENT - 1.9% | ||||||||
5,747 | E*TRADE Financial Corp. * | 300,511 | ||||||
9,438 | Franklin Resources, Inc. | 319,854 | ||||||
2,935 | Groupe Bruxelles Lambert SA | 264,191 | ||||||
13,003 | Invesco Ltd. | 264,611 | ||||||
109,243 | Melrose Industries PLC | 246,151 | ||||||
406 | Partners Group Holding AG | 265,900 | ||||||
1,661,218 | ||||||||
AUTOMOTIVE - 1.4% | ||||||||
6,836 | BorgWarner, Inc. | 270,569 | ||||||
2,464 | Cie Generale des Etablissements Michelin | 257,839 | ||||||
8,922 | Delphi Automotive PLC | 152,477 | ||||||
12,552 | Goodyear Tire & Rubber Co. | 290,704 | ||||||
7,618 | Nokian Renkaat OYJ | 243,842 | ||||||
1,215,431 | ||||||||
BANKING - 4.2% | ||||||||
47,585 | Bank Leumi Le-Israel BM | 311,623 | ||||||
28,018 | Commerzbank AG * | 241,288 | ||||||
6,037 | Commonwealth Bank of Australia | 314,019 | ||||||
20,717 | Credit Agricole SA | 257,274 | ||||||
11,800 | Danske Bank A/S | 235,234 | ||||||
43,309 | Investec PLC | 263,194 | ||||||
4,012 | KBC Group NV | 288,000 | ||||||
3,444 | Macquarie Group Ltd. | 287,764 | ||||||
2,862 | mBank SA * | 308,369 | ||||||
237,250 | Metropolitan Bank & Trust Co. | 337,635 | ||||||
43,873 | Natixis SA | 242,415 | ||||||
16,847 | People’s United Financial, Inc. | 284,040 | ||||||
9,907 | Raiffeisen Bank International AG * | 292,096 | ||||||
3,662,951 | ||||||||
BIOTECHNOLOGY & PHARMACEUTICAL - 2.8% | ||||||||
3,319 | AbbVie, Inc. | 312,882 | ||||||
2,480 | Alexion Pharmaceuticals, Inc. * | 305,412 | ||||||
3,251 | BioMarin Pharmaceutical, Inc. * | 312,194 | ||||||
3,605 | Celgene Corp. * | 260,353 |
See accompanying notes to financial statements.
13
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
BIOTECHNOLOGY & PHARMACEUTICAL (continued) - 2.8% | ||||||||
4,748 | Incyte Corp. * | $ | 305,059 | |||||
810 | Regeneron Pharmaceuticals, Inc. * | 296,176 | ||||||
4,901 | Seattle Genetics, Inc. * | 306,705 | ||||||
1,755 | Vertex Pharmaceuticals, Inc. * | 317,286 | ||||||
2,416,067 | ||||||||
CHEMICALS - 5.7% | ||||||||
1,304,641 | AKR Corporindo Tbk PT | 355,749 | ||||||
3,266 | Akzo Nobel NV | 274,017 | ||||||
2,413 | Arkema SA | 228,952 | ||||||
2,804 | Avery Dennison Corp. | 270,306 | ||||||
4,946 | Brenntag AG | 228,652 | ||||||
5,985 | CF Industries Holdings, Inc. | 252,507 | ||||||
4,830 | Croda International PLC | 300,488 | ||||||
3,164 | Eastman Chemical Co. | 249,386 | ||||||
3,492 | FMC Corp. | 288,928 | ||||||
134 | Givaudan SA | 329,854 | ||||||
4,272 | Imerys SA | 229,273 | ||||||
51,263 | Israel Chemicals Ltd. | 298,866 | ||||||
6,448 | Johnson Matthey PLC | 240,558 | ||||||
14,180 | K+S AG | 248,938 | ||||||
2,895 | LyondellBasell Industries NV | 270,132 | ||||||
9,778 | Mosaic Co. | 352,008 | ||||||
2,727 | PPG Industries, Inc. | 298,143 | ||||||
672 | Sherwin-Williams Co. | 284,975 | ||||||
5,001,732 | ||||||||
COMMERCIAL SERVICES - 1.9% | ||||||||
11,730 | Bureau Veritas SA | 259,251 | ||||||
1,492 | Cintas Corp. | 279,571 | ||||||
8,224 | Edenred | 313,615 | ||||||
98,458 | G4S PLC | 243,645 | ||||||
4,881 | Intertek Group PLC | 292,514 | ||||||
5,604 | Randstad Holding NV | 272,714 | ||||||
1,661,310 | ||||||||
CONSTRUCTION MATERIALS - 1.3% | ||||||||
13,911 | ACC Ltd. | 296,503 | ||||||
20,870 | James Hardie Industries PLC - ADR | 243,845 | ||||||
6,639 | LafargeHolcim Ltd. | 297,554 | ||||||
1,647 | Martin Marietta Materials, Inc. | 314,067 | ||||||
1,151,969 | ||||||||
CONSUMER PRODUCTS - 2.2% | ||||||||
9,609 | Associated British Foods PLC | 297,186 | ||||||
2,854 | JM Smucker Co. | 298,272 | ||||||
43,482 | Natura Cosmeticos SA | 459,081 | ||||||
36,604 | Orkla ASA | 302,082 | ||||||
47,858 | Pioneer Foods Group Ltd. | 293,369 | ||||||
236,158 | Sime Darby Plantation Berhad * | 265,251 | ||||||
1,915,241 |
See accompanying notes to financial statements.
14
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
CONSUMER SERVICES - 0.4% | ||||||||
115,346 | Kroton Educacional SA | $ | 312,567 | |||||
CONTAINERS & PACKAGING - 2.0% | ||||||||
31,883 | Amcor Ltd. | 312,685 | ||||||
7,093 | Ball Corp. | 348,337 | ||||||
40,612 | Brambles Ltd. | 304,577 | ||||||
5,817 | International Paper Co. | 268,687 | ||||||
11,465 | Mondi Ltd. | 252,183 | ||||||
7,440 | Sealed Air Corp. | 271,783 | ||||||
1,758,252 | ||||||||
DISTRIBUTORS - CONSUMER STAPLES - 0.3% | ||||||||
4,509 | Sysco Corp. | 303,910 | ||||||
DISTRIBUTORS - DISCRETIONARY - 0.4% | ||||||||
10,196 | Bunzl PLC | 314,299 | ||||||
ELECTRICAL EQUIPMENT - 3.2% | ||||||||
12,969 | ABB Ltd. | 262,274 | ||||||
3,508 | Allegion PLC | 321,298 | ||||||
3,878 | AMETEK, Inc. | 284,761 | ||||||
3,571 | Eaton Corp PLC | 274,753 | ||||||
8,911 | Johnson Controls International PLC | 309,924 | ||||||
5,677 | Kone OYJ | 281,280 | ||||||
10,744 | nVent Electric PLC | 268,815 | ||||||
12,603 | Prysmian SpA | 230,742 | ||||||
1,031 | Roper Technologies, Inc. | 306,815 | ||||||
1,276 | Schindler Holding AG | 255,366 | ||||||
2,796,028 | ||||||||
ENGINEERING & CONSTRUCTION SERVICES - 1.8% | ||||||||
9,539 | Boskalis Westminster | 263,749 | ||||||
5,318 | Fluor Corp. | 217,666 | ||||||
4,074 | Jacobs Engineering Group, Inc. | 267,540 | ||||||
22,458 | LendLease Group | 207,623 | ||||||
9,225 | Quanta Services, Inc. * | 323,798 | ||||||
3,090 | Vinci SA | 269,746 | ||||||
1,550,122 | ||||||||
FOREST & PAPER PRODUCTS - 0.2% | ||||||||
7,972 | UPM-Kymmene OYJ | 212,389 | ||||||
GAMING, LODGING & RESTAURANTS - 0.3% | ||||||||
5,142 | Whitbread PLC | 301,660 | ||||||
HARDWARE - 1.3% | ||||||||
10,617 | Juniper Networks, Inc. | 304,814 | ||||||
6,416 | Seagate Technology PLC | 276,465 | ||||||
35,764 | Telefonaktiebolaget LM Ericsson | 298,338 |
See accompanying notes to financial statements.
15
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
HARDWARE (continued) - 1.3% | ||||||||
5,207 | Western Digital Corp. | $ | 236,346 | |||||
1,115,963 | ||||||||
HEALTH CARE FACILITIES & SERVICES - 1.4% | ||||||||
3,353 | AmerisourceBergen Corp. | 298,082 | ||||||
4,337 | DaVita, Inc. * | 286,502 | ||||||
3,343 | Express Scripts Holding Co. * | 339,214 | ||||||
7,772 | Ramsay Health Care Ltd. | 307,726 | ||||||
1,231,524 | ||||||||
HOME & OFFICE PRODUCTS - 2.4% | ||||||||
7,684 | DR Horton, Inc. | 285,998 | ||||||
690 | Geberit AG | 268,723 | ||||||
7,096 | Leggett & Platt, Inc. | 274,899 | ||||||
6,270 | Lennar Corp. - Class A | 267,917 | ||||||
1,693 | Mohawk Industries, Inc. * | 216,806 | ||||||
10,210 | Persimmon PLC | 247,512 | ||||||
1,677 | Snap-on, Inc. | 278,784 | ||||||
2,050 | Stanley Black & Decker, Inc. | 268,243 | ||||||
2,108,882 | ||||||||
INDUSTRIAL SERVICES - 0.6% | ||||||||
5,367 | Fastenal Co. | 318,048 | ||||||
20,677 | Rexel SA | 248,045 | ||||||
566,093 | ||||||||
INSTITUTIONAL FINANCIAL SERVICES - 1.0% | ||||||||
4,148 | Intercontinental Exchange, Inc. | 338,975 | ||||||
5,243 | London Stock Exchange Group PLC | 269,789 | ||||||
3,364 | Nasdaq, Inc. | 307,200 | ||||||
915,964 | ||||||||
INSURANCE - 3.4% | ||||||||
3,007 | Assurant, Inc. | 292,401 | ||||||
4,001 | Cincinnati Financial Corp. | 327,002 | ||||||
73,664 | Direct Line Insurance Group PLC | 308,280 | ||||||
19,239 | Gjensidige Forsikring ASA | 299,881 | ||||||
57,287 | Insurance Australia Group Ltd. | 304,550 | ||||||
91,797 | Legal & General Group PLC | 286,836 | ||||||
39,667 | QBE Insurance Group Ltd. | 327,905 | ||||||
38,353 | RSA Insurance Group PLC | 265,519 | ||||||
6,336 | Sampo OYJ | 282,868 | ||||||
8,075 | Unum Group | 289,973 | ||||||
2,985,215 | ||||||||
IRON & STEEL - 2.0% | ||||||||
14,296 | Anglo American PLC | 285,679 | ||||||
14,481 | BHP Billiton PLC | 277,440 | ||||||
109,962 | Fortescue Metals Group Ltd. | 321,199 | ||||||
5,065 | Nucor Corp. | 305,977 | ||||||
6,162 | Rio Tinto PLC | 279,812 | ||||||
35,311 | Tata Steel Ltd. | 268,271 | ||||||
1,738,378 |
See accompanying notes to financial statements.
16
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
MACHINERY - 3.2% | ||||||||
11,189 | Alfa Laval AB | $ | 240,719 | |||||
2,069 | Deere & Co. | 320,447 | ||||||
3,541 | Dover Corp. | 300,595 | ||||||
5,702 | Flowserve Corp. | 276,604 | ||||||
2,187 | Illinois Tool Works, Inc. | 304,102 | ||||||
20,260 | IMI PLC | 251,647 | ||||||
1,660 | Parker-Hannifin Corp. | 285,586 | ||||||
17,300 | Sandvik AB | 256,617 | ||||||
61,661 | WEG SA | 283,576 | ||||||
3,892 | Xylem, Inc. | 284,038 | ||||||
2,803,931 | ||||||||
MEDIA - 0.3% | ||||||||
8,022 | Ctrip.com International Ltd. - ADR * | 231,435 | ||||||
MEDICAL EQUIPMENT & DEVICES - 4.0% | ||||||||
4,471 | Agilent Technologies, Inc. | 323,477 | ||||||
8,157 | Dentsply Sirona, Inc. | 308,171 | ||||||
2,059 | Edwards Lifesciences Corp. * | 333,579 | ||||||
2,289 | Essilor International SA | 290,661 | ||||||
1,313 | IDEXX Laboratories, Inc. * | 267,537 | ||||||
882 | Illumina, Inc. * | 297,675 | ||||||
566 | Intuitive Surgical, Inc. * | 300,472 | ||||||
3,273 | PerkinElmer, Inc. | 284,947 | ||||||
16,726 | Smith & Nephew PLC | 304,105 | ||||||
1,554 | Waters Corp. * | 308,593 | ||||||
7,757 | William Demant Holding A/S * | 226,541 | ||||||
2,406 | Zimmer Biomet Holdings, Inc. | 281,550 | ||||||
3,527,308 | ||||||||
METALS & MINING - 2.2% | ||||||||
26,973 | Antofagasta PLC | 275,457 | ||||||
21,638 | Freeport-McMoRan, Inc. | 258,358 | ||||||
28,307 | Fresnillo PLC | 272,105 | ||||||
108,150 | Grupo Mexico SAB de CV | 222,990 | ||||||
21,971 | Newcrest Mining Ltd. | 332,920 | ||||||
10,019 | Newmont Mining Corp. | 324,014 | ||||||
54,752 | Norsk Hydro ASA | 257,746 | ||||||
1,943,590 | ||||||||
OIL, GAS & COAL - 8.3% | ||||||||
2,491,313 | Adaro Energy Tbk PT * | 223,831 | ||||||
4,891 | Anadarko Petroleum Corp. | 258,734 | ||||||
7,136 | Apache Corp. | 250,688 | ||||||
13,094 | Cabot Oil & Gas Corp. | 329,445 | ||||||
14,809 | Caltex Australia Ltd. | 297,717 | ||||||
4,145 | ConocoPhillips | 274,316 | ||||||
36,594 | Cosan SA Industria e Comercio | 325,444 | ||||||
7,794 | Devon Energy Corp. | 210,672 | ||||||
16,495 | Eni SpA | 266,065 |
See accompanying notes to financial statements.
17
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
OIL, GAS & COAL (continued) - 8.3% | ||||||||
2,637 | EOG Resources, Inc. | $ | 272,428 | |||||
6,554 | EQT Corp. | 122,625 | ||||||
5,086 | Equitrans Midstream Corporation * | 113,520 | ||||||
7,766 | Halliburton Co. | 244,085 | ||||||
4,698 | Helmerich & Payne, Inc. | 284,699 | ||||||
17,935 | Kinder Morgan, Inc. | 306,150 | ||||||
6,274 | Koninklijke Vopak NV | 274,204 | ||||||
14,462 | Marathon Oil Corp. | 241,371 | ||||||
3,819 | Marathon Petroleum Corp. | 248,846 | ||||||
9,471 | Murphy Oil Corp. | 302,125 | ||||||
7,452 | National Oilwell Varco, Inc. | 239,284 | ||||||
10,423 | Newfield Exploration Co. * | 176,670 | ||||||
10,375 | Noble Energy, Inc. | 246,303 | ||||||
3,803 | Occidental Petroleum Corp. | 267,237 | ||||||
4,494 | ONEOK, Inc. | 276,066 | ||||||
2,795 | Phillips 66 | 261,388 | ||||||
1,831 | Pioneer Natural Resources Co. | 270,530 | ||||||
9,808 | TechnipFMC PLC | 226,467 | ||||||
2,822 | Valero Energy Corp. | 225,478 | ||||||
11,338 | Williams Cos, Inc. | 287,078 | ||||||
7,323,466 | ||||||||
PASSENGER TRANSPORTATION - 0.9% | ||||||||
415,426 | AirAsia Bhd | 305,774 | ||||||
17,328 | easyJet PLC | 245,961 | ||||||
3,212 | Ryanair Holdings PLC - ADR | 264,444 | ||||||
816,179 | ||||||||
REAL ESTATE - 7.6% | ||||||||
2,144 | American Tower Corp. | 352,667 | ||||||
7,257 | Apartment Investment & Management Co. | 341,732 | ||||||
1,785 | AvalonBay Communities, Inc. | 340,167 | ||||||
17,599 | Ayala Corp. | 319,280 | ||||||
383,980 | Ayala Land, Inc. | 305,089 | ||||||
2,466 | Boston Properties, Inc. | 323,539 | ||||||
38,623 | British Land Co. PLC | 278,230 | ||||||
2,969 | Covivio | 289,270 | ||||||
2,949 | Crown Castle International Corp. | 338,840 | ||||||
717 | Equinix, Inc. | 276,246 | ||||||
4,835 | Equity Residential | 344,494 | ||||||
1,335 | Essex Property Trust, Inc. | 350,451 | ||||||
42,066 | Goodman Group | 314,867 | ||||||
81,117 | GPT Group | 312,172 | ||||||
51,405 | Hammerson PLC | 253,168 | ||||||
12,329 | HCP, Inc. | 360,747 | ||||||
26,996 | Land Securities Group PLC | 280,100 | ||||||
5,695 | Macerich Co. | 286,402 | ||||||
4,803 | Prologis, Inc. | 323,434 | ||||||
1,547 | Public Storage | 329,913 |
See accompanying notes to financial statements.
18
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
REAL ESTATE (continued) - 7.6% | ||||||||
1,796 | Simon Property Group, Inc. | $ | 333,499 | |||||
6,654,307 | ||||||||
RENEWABLE ENERGY - 0.4% | ||||||||
4,582 | Vestas Wind Systems A/S | 342,013 | ||||||
RETAIL - CONSUMER STAPLES - 1.7% | ||||||||
1,346 | Costco Wholesale Corp. | 311,303 | ||||||
3,570 | Dollar Tree, Inc. * | 309,769 | ||||||
74,373 | J Sainsbury PLC | 289,422 | ||||||
93,800 | Wm Morrison Supermarkets PLC | 284,358 | ||||||
15,765 | Woolworths Ltd. | 332,938 | ||||||
1,527,790 | ||||||||
RETAIL - DISCRETIONARY - 4.4% | ||||||||
1,877 | Advance Auto Parts, Inc. | 333,562 | ||||||
410 | AutoZone, Inc. * | 331,719 | ||||||
4,020 | CarMax, Inc. * | 265,601 | ||||||
3,082 | Genuine Parts Co. | 319,634 | ||||||
11,933 | JD.com, Inc. - ADR * | 253,338 | ||||||
94,268 | Kingfisher PLC | 300,692 | ||||||
2,704 | Lowe’s Cos, Inc. | 255,176 | ||||||
4,754 | Luxottica Group SpA | 276,779 | ||||||
4,645 | Next PLC | 290,461 | ||||||
919 | O’Reilly Automotive, Inc. * | 318,691 | ||||||
5,018 | Pandora A/S | 271,097 | ||||||
3,241 | Ross Stores, Inc. | 283,912 | ||||||
3,512 | Tractor Supply Co. | 334,097 | ||||||
3,834,759 | ||||||||
SEMICONDUCTORS - 3.6% | ||||||||
3,343 | Analog Devices, Inc. | 307,289 | ||||||
1,665 | ASML Holding NV | 281,083 | ||||||
1,263 | Broadcom Ltd. | 299,849 | ||||||
3,024 | KLA-Tencor Corp. | 298,045 | ||||||
2,029 | Lam Research Corp. | 318,472 | ||||||
3,820 | Microchip Technology, Inc. | 286,500 | ||||||
7,064 | Micron Technology, Inc. * | 272,388 | ||||||
1,200 | NVIDIA Corp. | 196,116 | ||||||
3,371 | NXP Semiconductors NV | 281,040 | ||||||
16,798 | STMicroelectronics NV - ADR | 249,450 | ||||||
4,016 | Xilinx, Inc. | 371,400 | ||||||
3,161,632 | ||||||||
SOFTWARE - 1.4% | ||||||||
4,954 | Cerner Corp. | 286,886 | ||||||
5,365 | Gemalto NV | 307,128 | ||||||
41,458 | Sage Group PLC | 307,539 | ||||||
49,025 | Totvs SA | 366,916 | ||||||
1,268,469 |
See accompanying notes to financial statements.
19
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
SPECIALTY FINANCE - 1.8% | ||||||||
2,892 | Fidelity National Information Services, Inc. | $ | 312,191 | |||||
3,882 | Fiserv, Inc. * | 307,183 | ||||||
11,714 | Housing Development Finance Corp. Ltd. | 334,301 | ||||||
3,230 | Total System Services, Inc. | 282,205 | ||||||
16,612 | Western Union Co. | 311,143 | ||||||
1,547,023 | ||||||||
TECHNOLOGY SERVICES - 2.0% | ||||||||
3,890 | Cognizant Technology Solutions Corp. | 277,085 | ||||||
12,683 | Experian PLC | 308,515 | ||||||
30,978 | Infosys Ltd. | 296,668 | ||||||
4,202 | Paychex, Inc. | 297,334 | ||||||
10,189 | Tata Consultancy Services Ltd. | 287,747 | ||||||
2,632 | Verisk Analytics, Inc. * | 324,578 | ||||||
1,791,927 | ||||||||
TELECOMMUNICATIONS - 0.6% | ||||||||
13,124 | Eutelsat Communications SA | 279,733 | ||||||
36,346 | Mobile TeleSystems PJSC - ADR | 269,324 | ||||||
549,057 | ||||||||
TRANSPORTATION & LOGISTICS - 3.7% | ||||||||
1,368 | Aeroports de Paris | 265,949 | ||||||
33,114 | Babcock International Group PLC | 239,981 | ||||||
3,239 | CH Robinson Worldwide, Inc. | 299,057 | ||||||
4,252 | Expeditors International of Washington, Inc. | 323,535 | ||||||
3,546 | Fraport AG Frankfurt Airport Services | 260,731 | ||||||
15,546 | Grupo Aeroportuario del Sureste SAB de CV | 208,337 | ||||||
2,599 | JB Hunt Transport Services, Inc. | 276,430 | ||||||
2,800 | Kansas City Southern | 288,540 | ||||||
2,013 | Kuehne + Nagel International AG | 283,010 | ||||||
1,717 | Norfolk Southern Corp. | 293,161 | ||||||
50,662 | Royal Mail PLC | 206,718 | ||||||
1,918 | Union Pacific Corp. | 294,950 | ||||||
3,240,399 | ||||||||
TRANSPORTATION EQUIPMENT - 0.6% | ||||||||
4,377 | PACCAR, Inc. | 272,337 | ||||||
17,360 | Volvo AB | 240,722 | ||||||
513,059 | ||||||||
UTILITIES - 7.0% | ||||||||
344,490 | Aboitiz Equity Ventures, Inc. | 343,044 | ||||||
22,645 | AES Corp. | 350,771 | ||||||
22,575 | AGL Energy Ltd. | 310,090 | ||||||
11,541 | CenterPoint Energy, Inc. | 323,263 | ||||||
47,231 | Cia de Saneamento Basico do Estado de Sao Paulo | 344,103 | ||||||
159,705 | Cia Energetica de Minas Gerais | 523,859 | ||||||
6,620 | CMS Energy Corp. | 344,836 | ||||||
4,553 | Dominion Energy, Inc. | 339,199 | ||||||
3,946 | Entergy Corp. | 343,539 | ||||||
5,086 | Eversource Energy | 347,577 |
See accompanying notes to financial statements.
20
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
UTILITIES (continued) - 7.0% | ||||||||
8,523 | FirstEnergy Corp. | $ | 322,425 | |||||
12,374 | NiSource, Inc. | 326,921 | ||||||
127,699 | NTPC Ltd. | 257,065 | ||||||
54,565 | Origin Energy Ltd. | 258,203 | ||||||
3,942 | Pinnacle West Capital Corp. | 352,257 | ||||||
10,710 | PPL Corp. | 327,619 | ||||||
9,067 | SCANA Corp. | 423,066 | ||||||
4,701 | WEC Energy Group, Inc. | 340,728 | ||||||
6,178,565 | ||||||||
WASTE & ENVIRONMENT SERVICES & EQUIPMENT - 0.3% | ||||||||
6,992 | Pentair PLC | 298,558 | ||||||
TOTAL COMMON STOCKS (Cost $88,709,104) | 86,223,080 | |||||||
PREFERRED STOCK - 0.5% | ||||||||
INTEGRATED OILS - 0.5% | ||||||||
59,459 | Petroleo Brasileiro SA * (Cost $254,408) | 390,685 | ||||||
TOTAL INVESTMENTS - 98.7% (Cost $88,963,512) | $ | 86,613,765 | ||||||
OTHER ASSETS LESS LIABILITIES - 1.3% | 1,156,474 | |||||||
NET ASSETS - 100.0% | $ | 87,770,239 |
* | Non-Income producing security. |
AB - Aktiebolag
ADR - American Depositary Receipt
AG - ktiengesellschaft
NV - Naamloze vennootschap
OYJ - Osakeyhtiö
PLC - Public Limited Company
PT - Perseroan Terbatas
SA - Société anonyme
See accompanying notes to financial statements.
21
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS |
November 30, 2018 |
Shares | Value | |||||||
COMMON STOCKS - 97.8% | ||||||||
AEROSPACE & DEFENSE - 1.1% | ||||||||
2,435 | AAR Corp. | $ | 106,385 | |||||
7,278 | American Outdoor Brands Corp. * | 88,646 | ||||||
1,739 | Axon Enterprise, Inc. * | 75,594 | ||||||
1,544 | Barnes Group, Inc. | 92,717 | ||||||
1,042 | MSA Safety, Inc. | 113,568 | ||||||
4,859 | Triumph Group, Inc. | 81,680 | ||||||
558,590 | ||||||||
APPAREL & TEXTILE PRODUCTS - 1.0% | ||||||||
1,416 | Albany International Corp. | 102,462 | ||||||
981 | Deckers Outdoor Corp. * | 130,708 | ||||||
4,967 | Fossil Group, Inc. * | 96,012 | ||||||
3,046 | Steven Madden Ltd. | 98,173 | ||||||
2,862 | Wolverine World Wide, Inc. | 99,025 | ||||||
526,380 | ||||||||
ASSET MANAGEMENT - 1.3% | ||||||||
3,317 | Artisan Partners Asset Management, Inc. | 90,322 | ||||||
3,068 | Blucora, Inc. * | 94,985 | ||||||
2,589 | Cohen & Steers, Inc. | 96,725 | ||||||
4,658 | Federated Investors, Inc. | 123,344 | ||||||
5,076 | Kennedy-Wilson Holdings, Inc. | 99,439 | ||||||
68,522 | Och-Ziff Capital Management Group LLC | 69,892 | ||||||
5,167 | Waddell & Reed Financial, Inc. | 105,200 | ||||||
679,907 | ||||||||
AUTOMOTIVE - 1.3% | ||||||||
6,008 | American Axle & Manufacturing Holdings, Inc. * | 74,800 | ||||||
3,765 | Cooper Tire & Rubber Co. | 128,763 | ||||||
911 | Cooper-Standard Holdings, Inc. * | 66,612 | ||||||
5,663 | Dana, Inc. | 82,170 | ||||||
1,421 | Dorman Products, Inc. * | 124,849 | ||||||
2,356 | Tenneco, Inc. | 79,515 | ||||||
1,097 | Visteon Corp. * | 80,981 | ||||||
637,690 | ||||||||
BANKING - 9.7% | ||||||||
2,325 | Ameris Bancorp. | 99,580 | ||||||
4,131 | Associated Banc-Corp. | 95,715 | ||||||
3,109 | Axos Financial, Inc. * | 97,001 | ||||||
5,582 | Banc of California, Inc. | 96,010 | ||||||
3,222 | BancorpSouth Bank | 99,205 | ||||||
1,754 | Banner Corp. | 105,240 | ||||||
7,796 | Boston Private Financial Holdings, Inc. | 98,931 | ||||||
8,590 | Capitol Federal Financial, Inc. | 120,604 | ||||||
2,592 | Cathay General Bancorp. | 102,565 | ||||||
2,758 | Columbia Banking System, Inc. | 112,195 | ||||||
1,806 | Community Bank System, Inc. | 118,582 | ||||||
4,660 | CVB Financial Corp. | 108,298 |
See accompanying notes to financial statements.
22
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
BANKING (continued) - 9.7% | ||||||||
2,253 | FCB Financial Holdings, Inc. * | $ | 89,309 | |||||
12,354 | First BanCorp. * | 111,804 | ||||||
3,525 | First Financial Bancorp. | 98,418 | ||||||
1,858 | First Financial Bankshares, Inc. | 121,736 | ||||||
6,180 | First Horizon National Corp. | 101,908 | ||||||
2,490 | First Interstate BancSystem, Inc. | 108,141 | ||||||
4,111 | First Midwest Bancorp, Inc. | 96,979 | ||||||
3,523 | Flagstar Bancorp, Inc. * | 114,321 | ||||||
8,389 | FNB Corp. | 102,849 | ||||||
6,397 | Fulton Financial Corp. | 111,372 | ||||||
2,442 | Great Western Bancorp, Inc. | 91,135 | ||||||
2,226 | Hancock Whitney Corp. | 89,530 | ||||||
5,363 | Hilltop Holdings, Inc. | 104,793 | ||||||
6,617 | Hope Bancorp, Inc. | 100,578 | ||||||
1,370 | IBERIABANK Corp. | 102,408 | ||||||
2,488 | International Bancshares Corp. | 95,514 | ||||||
2,506 | LegacyTexas Financial Group, Inc. | 97,258 | ||||||
3,551 | NBT Bancorp, Inc. | 138,383 | ||||||
6,208 | Northwest Bancshares, Inc. | 111,309 | ||||||
5,669 | Old National Bancorp. | 106,180 | ||||||
1,708 | Pinnacle Financial Partners, Inc. | 97,954 | ||||||
4,490 | Provident Financial Services, Inc. | 115,303 | ||||||
2,562 | Renasant Corp. | 93,641 | ||||||
2,755 | ServisFirst Bancshares, Inc. | 108,464 | ||||||
3,504 | Simmons First National Corp. | 103,018 | ||||||
4,849 | Sterling Bancorp. | 93,586 | ||||||
4,333 | TCF Financial Corp. | 97,449 | ||||||
1,275 | Texas Capital Bancshares, Inc. | 76,067 | ||||||
3,503 | Towne Bank/Portsmouth VA | 100,221 | ||||||
3,152 | Trustmark Corp. | 101,936 | ||||||
2,654 | Union Bankshares Corp. | 93,952 | ||||||
3,835 | United Community Banks, Inc. | 99,135 | ||||||
9,381 | Valley National Bancorp. | 101,502 | ||||||
3,216 | Washington Federal, Inc. | 92,653 | ||||||
2,393 | WesBanco, Inc. | 104,048 | ||||||
1,847 | Westamerica Bancorporation | 116,730 | ||||||
4,943,510 | ||||||||
BIOTECHNOLOGY & PHARMACEUTICAL - 6.0% | ||||||||
5,861 | Acorda Therapeutics, Inc. * | 119,740 | ||||||
1,873 | Aerie Pharmaceuticals, Inc. * | 74,714 | ||||||
8,441 | Akorn, Inc. * | 57,905 | ||||||
6,826 | Alder Biopharmaceuticals, Inc. * | 91,332 | ||||||
4,714 | Amneal Pharmaceuticals, Inc. * | 83,485 | ||||||
7,461 | Array BioPharma, Inc. * | 118,854 | ||||||
791 | Bluebird Bio, Inc. * | 97,206 | ||||||
1,753 | Cambrex Corp. * | 83,846 |
See accompanying notes to financial statements.
23
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
BIOTECHNOLOGY & PHARMACEUTICAL (continued) - 6.0% | ||||||||
3,357 | Clovis Oncology, Inc. * | $ | 57,774 | |||||
6,852 | Coherus Biosciences, Inc. * | 75,783 | ||||||
1,604 | Eagle Pharmaceuticals, Inc. * | 80,842 | ||||||
7,994 | Five Prime Therapeutics, Inc. * | 102,643 | ||||||
6,010 | Halozyme Therapeutics, Inc. * | 99,225 | ||||||
5,776 | Horizon Pharma PLC * | 115,404 | ||||||
7,349 | Innoviva, Inc. * | 134,193 | ||||||
938 | Intercept Pharmaceuticals, Inc. * | 104,034 | ||||||
6,236 | Ironwood Pharmaceuticals, Inc. * | 86,182 | ||||||
10,029 | Lexicon Pharmaceuticals, Inc. * | 81,235 | ||||||
412 | Ligand Pharmaceuticals, Inc. * | 65,001 | ||||||
3,360 | Medicines Co. * | 74,357 | ||||||
4,118 | Momenta Pharmaceuticals, Inc. * | 48,757 | ||||||
45,776 | Ophthotech Corp. * | 85,143 | ||||||
2,187 | Pacira Pharmaceuticals, Inc. * | 105,698 | ||||||
4,063 | Portola Pharmaceuticals, Inc. * | 88,776 | ||||||
2,941 | Prestige Brands Holdings, Inc. * | 114,170 | ||||||
7,741 | Prothena Corp PLC * | 92,969 | ||||||
2,327 | Puma Biotechnology, Inc. * | 54,079 | ||||||
6,361 | Radius Health, Inc. * | 106,038 | ||||||
773 | Sage Therapeutics, Inc. * | 89,119 | ||||||
721 | Sarepta Therapeutics, Inc. * | 93,348 | ||||||
1,964 | Spark Therapeutics, Inc. * | 82,743 | ||||||
2,228 | Supernus Pharmaceuticals, Inc. * | 105,652 | ||||||
3,814 | Theravance Biopharma, Inc. * | 105,305 | ||||||
1,245 | Ultragenyx Pharmaceutical, Inc. * | 66,819 | ||||||
3,042,371 | ||||||||
CHEMICALS - 3.2% | ||||||||
3,139 | AdvanSix, Inc. * | 90,121 | ||||||
1,766 | Cabot Corp. | 86,887 | ||||||
4,116 | GCP Applied Technologies, Inc. * | 112,367 | ||||||
1,977 | HB Fuller Co. | 95,370 | ||||||
1,088 | Ingevity Corp. * | 106,635 | ||||||
1,416 | Innospec, Inc. | 104,416 | ||||||
6,527 | Kronos Worldwide, Inc. | 80,739 | ||||||
1,611 | Minerals Technologies, Inc. | 90,667 | ||||||
2,501 | PolyOne Corp. | 84,084 | ||||||
556 | Quaker Chemical Corp. | 114,669 | ||||||
4,218 | Sensient Technologies Corp. | 271,049 | ||||||
1,250 | Stepan Co. | 101,025 | ||||||
1,520 | Trinseo SA | 76,805 | ||||||
3,610 | Univar, Inc. * | 78,193 | ||||||
638 | WD-40 Co. | 111,446 | ||||||
1,604,473 |
See accompanying notes to financial statements.
24
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
COMMERCIAL SERVICES - 2.3% | ||||||||
3,322 | ABM Industries, Inc. | $ | 105,241 | |||||
2,501 | Brady Corp. | 108,943 | ||||||
1,949 | Deluxe Corp. | 98,132 | ||||||
1,539 | FTI Consulting, Inc. * | 108,115 | ||||||
2,602 | Healthcare Services Group, Inc. | 122,814 | ||||||
3,418 | HMS Holdings Corp. * | 122,159 | ||||||
948 | Insperity, Inc. | 94,838 | ||||||
2,240 | Korn/Ferry International | 109,693 | ||||||
5,107 | Quad/Graphics, Inc. | 83,653 | ||||||
2,024 | TriNet Group, Inc. * | 92,922 | ||||||
636 | UniFirst Corp. | 98,205 | ||||||
1,144,715 | ||||||||
CONSTRUCTION MATERIALS - 0.9% | ||||||||
2,505 | Apogee Enterprises, Inc. | 91,307 | ||||||
4,000 | Louisiana-Pacific Corp. | 91,440 | ||||||
5,877 | Summit Materials, Inc. * | 85,216 | ||||||
1,387 | Trex Co., Inc. * | 88,394 | ||||||
3,013 | Universal Forest Products, Inc. | 83,340 | ||||||
439,697 | ||||||||
CONSUMER PRODUCTS - 3.2% | ||||||||
3,733 | B&G Foods, Inc. | 113,222 | ||||||
2,246 | Cal-Maine Foods, Inc. | 104,933 | ||||||
2,881 | Central Garden & Pet Co. * | 97,522 | ||||||
3,576 | Clearwater Paper Corp. | 110,177 | ||||||
620 | Coca-Cola Bottling Co. Consolidated | 131,762 | ||||||
5,877 | Darling Ingredients, Inc. * | 128,589 | ||||||
14,908 | Dean Foods Co. | 75,136 | ||||||
1,738 | Energizer Holdings, Inc. | 77,915 | ||||||
5,779 | Flowers Foods, Inc. | 114,366 | ||||||
3,136 | Fresh Del Monte Produce, Inc. | 105,526 | ||||||
752 | J&J Snack Foods Corp. | 117,966 | ||||||
1,343 | Nu Skin Enterprises, Inc. | 88,598 | ||||||
4,980 | Revlon, Inc. * | 124,450 | ||||||
1,052 | Sanderson Farms, Inc. | 119,044 | ||||||
3,857 | Tootsie Roll Industries, Inc. | 135,034 | ||||||
1,644,240 | ||||||||
CONSUMER SERVICES - 1.1% | ||||||||
1,432 | 2U, Inc. * | 83,614 | ||||||
2,051 | Aaron’s, Inc. | 95,987 | ||||||
2,395 | Adtalem Global Education, Inc. * | 138,287 | ||||||
996 | Grand Canyon Education, Inc. * | 121,871 | ||||||
2,215 | Matthews International Corp. | 93,318 | ||||||
533,077 | ||||||||
CONTAINERS & PACKAGING - 0.6% | ||||||||
2,258 | Bemis Co., Inc. | 110,100 | ||||||
1,934 | Greif, Inc. | 99,156 |
See accompanying notes to financial statements.
25
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
CONTAINERS & PACKAGING (continued) - 0.6% | ||||||||
4,030 | Silgan Holdings, Inc. | $ | 103,773 | |||||
313,029 | ||||||||
DESIGN, MANUFACTURING & DISTRIBUTION - 0.7% | ||||||||
2,401 | Fabrinet * | 126,605 | ||||||
1,788 | Plexus Corp. * | 109,140 | ||||||
1,292 | SYNNEX Corp. | 104,316 | ||||||
340,061 | ||||||||
DISTRIBUTORS - CONSUMER STAPLES - 0.1% | ||||||||
3,464 | United Natural Foods, Inc. * | 74,857 | ||||||
DISTRIBUTORS - DISCRETIONARY - 0.2% | ||||||||
2,338 | G-III Apparel Group Ltd. * | 93,707 | ||||||
ELECTRICAL EQUIPMENT - 1.6% | ||||||||
2,839 | AAON, Inc. | 107,740 | ||||||
1,543 | Belden, Inc. | 86,069 | ||||||
1,896 | Generac Holdings, Inc. * | 107,920 | ||||||
1,682 | Itron, Inc. * | 91,097 | ||||||
541 | Littelfuse, Inc. | 103,520 | ||||||
1,752 | Orbotech Ltd. * | 101,651 | ||||||
1,394 | OSI Systems, Inc. * | 100,926 | ||||||
1,373 | Watts Water Technologies, Inc. | 101,272 | ||||||
800,195 | ||||||||
ENGINEERING & CONSTRUCTION SERVICES - 1.2% | ||||||||
1,337 | Dycom Industries, Inc. * | 88,590 | ||||||
2,188 | Exponent, Inc. | 110,100 | ||||||
2,447 | Granite Construction, Inc. | 123,892 | ||||||
5,203 | KBR, Inc. | 96,620 | ||||||
2,429 | MasTec, Inc. * | 109,524 | ||||||
1,793 | TopBuild Corp. * | 91,353 | ||||||
620,079 | ||||||||
FOREST & PAPER PRODUCTS - 0.4% | ||||||||
2,050 | Domtar Corp. | 89,339 | ||||||
1,258 | Neenah Paper, Inc. | 86,651 | ||||||
175,990 | ||||||||
GAMING, LODGING & RESTAURANTS - 1.5% | ||||||||
2,087 | Cheesecake Factory, Inc. | 98,486 | ||||||
1,327 | DineEquity, Inc. | 118,342 | ||||||
5,577 | Extended Stay America, Inc. | 101,501 | ||||||
1,243 | Jack in the Box, Inc. | 110,242 | ||||||
2,381 | Papa John’s International, Inc. | 114,264 | ||||||
1,601 | Texas Roadhouse, Inc. | 105,714 | ||||||
6,192 | Wendy’s Co. | 111,022 | ||||||
759,571 |
See accompanying notes to financial statements.
26
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
HARDWARE - 3.0% | ||||||||
5,748 | 3D Systems Corp. * | $ | 71,160 | |||||
3,520 | Ciena Corp. * | 114,822 | ||||||
23,225 | Diebold Nixdorf, Inc. | 75,946 | ||||||
3,251 | Electronics For Imaging, Inc. * | 89,988 | ||||||
19,491 | Fitbit, Inc. * | 107,395 | ||||||
16,564 | GoPro, Inc. * | 84,145 | ||||||
1,326 | InterDigital, Inc. | 99,795 | ||||||
7,044 | Knowles Corp. * | 107,351 | ||||||
1,776 | Lumentum Holdings, Inc. * | 78,979 | ||||||
1,707 | NETGEAR, Inc. * | 94,568 | ||||||
4,243 | NetScout Systems, Inc. * | 113,628 | ||||||
15,050 | Pitney Bowes, Inc. | 127,022 | ||||||
1,817 | Plantronics, Inc. | 83,164 | ||||||
4,184 | Pure Storage, Inc. * | 79,119 | ||||||
9,745 | Viavi Solutions, Inc. * | 98,814 | ||||||
9,983 | Wesco Aircraft Holdings, Inc. * | 95,038 | ||||||
1,520,934 | ||||||||
HEALTHCARE FACILITIES - SERVICES - 2.6% | ||||||||
3,064 | Acadia Healthcare Co., Inc. * | 104,084 | ||||||
908 | Amedisys, Inc. * | 123,715 | ||||||
11,669 | Brookdale Senior Living, Inc. * | 99,770 | ||||||
2,563 | Catalent, Inc. * | 101,623 | ||||||
857 | Charles River Laboratories International, Inc. * | 115,566 | ||||||
349 | Chemed Corp. | 110,556 | ||||||
1,196 | HealthEquity, Inc. * | 106,073 | ||||||
1,520 | Magellan Health, Inc. * | 82,870 | ||||||
6,546 | Owens & Minor, Inc. | 49,946 | ||||||
2,524 | Premier, Inc. * | 100,102 | ||||||
5,907 | Select Medical Holdings Corp. * | 114,478 | ||||||
2,302 | Syneos Health, Inc. * | 119,059 | ||||||
3,860 | Tenet Healthcare Corp. * | 100,630 | ||||||
1,328,472 | ||||||||
HOME & OFFICE PRODUCTS - 1.4% | ||||||||
1,587 | Armstrong World Industries, Inc. * | 106,313 | ||||||
2,491 | HNI Corp. | 96,028 | ||||||
1,060 | iRobot Corp. * | 101,124 | ||||||
2,632 | Meritage Homes Corp. * | 100,674 | ||||||
5,760 | Taylor Morrison Home Corp. * | 97,402 | ||||||
8,345 | TRI Pointe Group, Inc. * | 104,146 | ||||||
3,321 | Tupperware Brands Corp. | 126,065 | ||||||
731,752 | ||||||||
INDUSTRIAL SERVICES - 0.6% | ||||||||
1,543 | Anixter International, Inc. * | 98,690 | ||||||
1,398 | Applied Industrial Technologies, Inc. | 91,192 | ||||||
1,883 | WESCO International, Inc. * | 100,571 | ||||||
290,453 |
See accompanying notes to financial statements.
27
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
INSTITUTIONAL FINANCIAL SERVICES - 0.2% | ||||||||
2,392 | Houlihan Lokey, Inc. | $ | 101,182 | |||||
INSURANCE - 2.5% | ||||||||
3,043 | American Equity Investment Life Holding Co. | 103,858 | ||||||
1,798 | Argo Group International Holdings Ltd. | 124,637 | ||||||
2,587 | Aspen Insurance Holdings Ltd. | 108,292 | ||||||
1,366 | FBL Financial Group, Inc. | 96,071 | ||||||
2,394 | Horace Mann Educators Corp. | 96,430 | ||||||
1,461 | Kemper Corp. | 111,182 | ||||||
36,440 | Maiden Holdings Ltd. | 92,193 | ||||||
3,992 | National General Holdings Corp. | 105,988 | ||||||
1,653 | Navigators Group, Inc. | 114,834 | ||||||
917 | Primerica, Inc. | 109,013 | ||||||
1,411 | RLI Corp. | 106,982 | ||||||
1,768 | Selective Insurance Group, Inc. | 117,342 | ||||||
1,286,822 | ||||||||
IRON & STEEL - 1.1% | ||||||||
24,112 | AK Steel Holding Corp. * | 74,265 | ||||||
3,835 | Allegheny Technologies, Inc. | 100,707 | ||||||
1,888 | Carpenter Technology Corp. | 81,335 | ||||||
8,896 | Cleveland-Cliffs, Inc. * | 82,555 | ||||||
5,410 | Commercial Metals Co. | 104,251 | ||||||
2,335 | Worthington Industries, Inc. | 96,715 | ||||||
539,828 | ||||||||
LEISURE PRODUCTS - 0.3% | ||||||||
4,694 | Callaway Golf Co. | 80,408 | ||||||
6,565 | Vista Outdoor, Inc. * | 74,841 | ||||||
155,249 | ||||||||
LISTED BUSINESS DEVELOPMENT COMPANIES - 0.2% | ||||||||
2,847 | Main Street Capital Corporation | 108,898 | ||||||
MACHINERY - 2.4% | ||||||||
3,749 | Actuant Corp. | 95,974 | ||||||
1,176 | Alamo Group, Inc. | 97,385 | ||||||
2,158 | Astec Industries, Inc. | 76,976 | ||||||
2,430 | Franklin Electric Co., Inc. | 109,958 | ||||||
2,209 | Hillenbrand, Inc. | 97,881 | ||||||
1,826 | ITT, Inc. | 101,252 | ||||||
927 | John Bean Technologies Corp. | 76,515 | ||||||
2,465 | Kennametal, Inc. | 103,086 | ||||||
9,153 | Mueller Water Products, Inc. | 96,381 | ||||||
1,298 | Regal Beloit Corp. | 101,478 | ||||||
3,689 | Rexnord Corp. * | 104,436 | ||||||
2,671 | Terex Corp. | 88,303 | ||||||
5,028 | Welbilt, Inc. * | 69,487 | ||||||
1,219,112 |
See accompanying notes to financial statements.
28
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
MANUFACTURED GOODS - 1.4% | ||||||||
2,120 | AZZ, Inc. | $ | 101,209 | |||||
1,507 | EnPro Industries, Inc. | 106,063 | ||||||
2,399 | Gibraltar Industries, Inc. * | 86,748 | ||||||
703 | Proto Labs, Inc. * | 90,469 | ||||||
730 | RBC Bearings, Inc. * | 111,705 | ||||||
2,145 | Timken Co. | 86,122 | ||||||
786 | Valmont Industries, Inc. | 102,604 | ||||||
684,920 | ||||||||
MEDIA - 1.5% | ||||||||
129 | Cable One, Inc. | 116,008 | ||||||
19,145 | Clear Channel Outdoor Holdings, Inc. | 97,831 | ||||||
6,826 | EW Scripps Co. | 120,342 | ||||||
819 | GrubHub, Inc. * | 64,120 | ||||||
1,885 | John Wiley & Sons, Inc. | 104,222 | ||||||
1,339 | Nexstar Media Group, Inc. | 110,655 | ||||||
1,596 | Shutterfly, Inc. * | 79,784 | ||||||
485 | Stamps.com, Inc. * | 83,158 | ||||||
776,120 | ||||||||
MEDICAL EQUIPMENT & DEVICES - 4.1% | ||||||||
1,609 | Avanos Medical, Inc. * | 76,765 | ||||||
1,119 | Catalent Inc. * | 96,100 | ||||||
1,417 | Exact Sciences Corp. * | 110,498 | ||||||
1,557 | Genomic Health, Inc. * | 123,081 | ||||||
1,978 | Globus Medical, Inc. * | 95,518 | ||||||
979 | Haemonetics Corp. * | 105,027 | ||||||
1,179 | Hill-Rom Holdings, Inc. | 114,316 | ||||||
406 | ICU Medical, Inc. * | 97,639 | ||||||
437 | Inogen, Inc. * | 64,396 | ||||||
1,076 | Insulet Corp. * | 90,309 | ||||||
1,673 | Integra LifeSciences Holdings Corp. * | 89,723 | ||||||
887 | LivaNova PLC * | 89,755 | ||||||
898 | Masimo Corp. * | 99,157 | ||||||
1,803 | Merit Medical Systems, Inc. * | 113,679 | ||||||
18,308 | MiMedx Group, Inc. * | 55,107 | ||||||
2,351 | Myriad Genetics, Inc. * | 75,796 | ||||||
2,956 | Natus Medical, Inc. * | 104,583 | ||||||
1,245 | Neogen Corp. * | 80,751 | ||||||
1,614 | NuVasive, Inc. * | 102,796 | ||||||
3,957 | NxStage Medical, Inc. * | 111,746 | ||||||
725 | Penumbra, Inc. * | 100,934 | ||||||
3,739 | Varex Imaging Corp. * | 98,523 | ||||||
2,096,199 | ||||||||
METALS & MINING - 0.7% | ||||||||
19,735 | Coeur Mining, Inc. * | 77,953 | ||||||
1,641 | Compass Minerals International, Inc. | 82,214 | ||||||
37,397 | Hecla Mining Co. | 89,005 |
See accompanying notes to financial statements.
29
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
METALS & MINING (continued) - 0.7% | ||||||||
993 | Kaiser Aluminum Corp. | $ | 97,046 | |||||
346,218 | ||||||||
OIL, GAS & COAL - 6.1% | ||||||||
5,514 | Alliance Resource Partners LP | 108,350 | ||||||
9,053 | Callon Petroleum Co. * | 77,403 | ||||||
4,197 | Carrizo Oil & Gas, Inc. * | 71,811 | ||||||
3,092 | Crestwood Equity Partners LP | 91,832 | ||||||
2,711 | CVR Energy, Inc. | 102,313 | ||||||
6,207 | Dominion Energy Midstream Partners LP | 115,326 | ||||||
2,191 | Dril-Quip, Inc. * | 86,019 | ||||||
8,642 | Enerplus Corp. | 83,222 | ||||||
6,812 | EnLink Midstream LLC | 77,861 | ||||||
2,034 | EQT Midstream Partners LP | 96,940 | ||||||
10,029 | Forum Energy Technologies, Inc. * | 67,094 | ||||||
13,148 | Frank’s International NV | 96,638 | ||||||
9,956 | Gulfport Energy Corp. * | 84,825 | ||||||
3,388 | Holly Energy Partners LP | 95,304 | ||||||
11,753 | Kosmos Energy Ltd. * | 63,231 | ||||||
5,999 | McDermott International, Inc. * | 52,251 | ||||||
5,803 | MRC Global, Inc. * | 91,281 | ||||||
1,275 | Murphy USA, Inc. * | 103,301 | ||||||
16,354 | Nabors Industries Ltd. | 52,823 | ||||||
10,029 | NGL Energy Partners LP | 93,069 | ||||||
15,560 | Noble Corp PLC | 64,885 | ||||||
6,543 | NOW, Inc. * | 88,265 | ||||||
8,341 | Oasis Petroleum, Inc. * | 59,555 | ||||||
3,984 | Oceaneering International, Inc. | 66,891 | ||||||
3,324 | Oil States International, Inc .* | 74,524 | ||||||
2,273 | PBF Energy, Inc. | 87,920 | ||||||
9,654 | QEP Resources, Inc. | 77,522 | ||||||
5,253 | SemGroup Corp. | 85,256 | ||||||
3,454 | SM Energy Co. | 70,462 | ||||||
7,305 | Summit Midstream Partners LP | 89,778 | ||||||
3,903 | Sunoco LP | 109,128 | ||||||
11,447 | Superior Energy Services, Inc. | 62,386 | ||||||
5,489 | US Silica Holdings, Inc. | 77,889 | ||||||
3,043 | Valero Energy Partners LP | 128,019 | ||||||
2,609 | Viper Energy Partners LP | 78,348 | ||||||
2,162 | Whiting Petroleum Corp. * | 65,444 | ||||||
3,853 | World Fuel Services Corp. | 99,369 | ||||||
3,096,535 | ||||||||
PASSENGER TRANSPORTATION - 0.4% | ||||||||
870 | Allegiant Travel Co. | 116,937 | ||||||
1,911 | SkyWest, Inc. | 110,227 | ||||||
227,164 |
See accompanying notes to financial statements.
30
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
REAL ESTATE - 6.8% | ||||||||
3,879 | Acadia Realty Trust | $ | 111,211 | |||||
2,994 | American Assets Trust, Inc. | 124,610 | ||||||
6,932 | Brandywine Realty Trust | 98,920 | ||||||
6,460 | CareTrust REIT, Inc. | 129,329 | ||||||
26,019 | CBL & Associates Properties, Inc. | 67,910 | ||||||
3,386 | Chesapeake Lodging Trust | 100,124 | ||||||
4,950 | Columbia Property Trust, Inc. | 106,277 | ||||||
4,691 | CoreCivic, Inc. | 102,967 | ||||||
986 | CoreSite Realty Corp. | 96,096 | ||||||
3,797 | Corporate Office Properties Trust | 92,913 | ||||||
12,334 | Cousins Properties, Inc. | 104,222 | ||||||
8,951 | DiamondRock Hospitality Co. | 94,344 | ||||||
3,520 | First Industrial Realty Trust, Inc. | 112,851 | ||||||
4,428 | GEO Group, Inc. | 102,907 | ||||||
6,771 | Kite Realty Group Trust | 111,789 | ||||||
13,371 | Lexington Realty Trust | 117,397 | ||||||
2,539 | LTC Properties, Inc. | 117,911 | ||||||
5,315 | Mack-Cali Realty Corp. | 115,123 | ||||||
5,553 | Outfront Media, Inc. | 115,391 | ||||||
3,029 | Pebblebrook Hotel Trust | 105,773 | ||||||
6,668 | Physicians Realty Trust | 118,757 | ||||||
5,770 | Piedmont Office Realty Trust, Inc. | 106,918 | ||||||
2,570 | PotlatchDeltic Corp. | 95,347 | ||||||
2,568 | QTS Realty Trust, Inc. | 104,235 | ||||||
3,248 | Rayonier, Inc. | 102,734 | ||||||
3,497 | Rexford Industrial Realty, Inc. | 114,142 | ||||||
4,875 | RLJ Lodging Trust | 99,157 | ||||||
1,328 | Ryman Hospitality Properties, Inc. | 98,418 | ||||||
5,027 | Sabra Health Care REIT, Inc. | 96,971 | ||||||
4,886 | Select Income REIT | 94,300 | ||||||
3,985 | STAG Industrial, Inc. | 106,758 | ||||||
3,703 | Washington Real Estate Investment Trust | 99,833 | ||||||
4,660 | Xenia Hotels & Resorts, Inc. | 94,691 | ||||||
3,460,326 | ||||||||
RECREATION FACILITIES & SERVICES - 0.4% | ||||||||
3,695 | SeaWorld Entertainment, Inc. | 105,234 | ||||||
6,459 | St Joe Co. * | 96,885 | ||||||
202,119 | ||||||||
RETAIL - CONSUMER STAPLES - 1.0% | ||||||||
2,553 | Big Lots, Inc. | 111,209 | ||||||
883 | Five Below, Inc. * | 92,530 | ||||||
1,324 | PriceSmart, Inc. | 88,562 | ||||||
3,995 | Sprouts Farmers Market, Inc. * | 91,965 | ||||||
2,438 | Weis Markets, Inc. | 111,660 | ||||||
495,926 |
See accompanying notes to financial statements.
31
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
RETAIL - DISCRETIONARY - 2.6% | ||||||||
7,140 | Builders FirstSource, Inc. * | $ | 96,604 | |||||
12,674 | Chico’s FAS, Inc. | 68,440 | ||||||
849 | Children’s Place, Inc. | 110,064 | ||||||
1,435 | Dillard’s, Inc. | 99,575 | ||||||
3,377 | DSW, Inc. | 93,678 | ||||||
1,338 | FirstCash, Inc. | 119,149 | ||||||
2,513 | Genesco, Inc. * | 104,943 | ||||||
1,292 | Lithia Motors, Inc. | 107,055 | ||||||
1,573 | Monro, Inc. | 127,916 | ||||||
8,082 | Party City Holdco, Inc. * | 96,580 | ||||||
822 | RH * | 95,467 | ||||||
6,046 | Sally Beauty Holdings, Inc. * | 127,631 | ||||||
804 | Wayfair, Inc. * | 85,385 | ||||||
1,332,487 | ||||||||
SEMICONDUCTORS - 4.4% | ||||||||
2,042 | Advanced Energy Industries, Inc. * | 96,056 | ||||||
14,125 | Amkor Technology, Inc. * | 96,756 | ||||||
3,391 | Brooks Automation, Inc. | 102,951 | ||||||
1,050 | Cabot Microelectronics Corp. | 112,854 | ||||||
2,698 | Cirrus Logic, Inc. * | 101,013 | ||||||
590 | Coherent, Inc. * | 81,514 | ||||||
2,726 | Cree, Inc. * | 120,326 | ||||||
3,653 | Entegris, Inc. | 107,398 | ||||||
2,299 | II-VI, Inc. * | 86,029 | ||||||
3,041 | Inphi Corp. * | 121,305 | ||||||
2,347 | Integrated Device Technology, Inc. * | 112,515 | ||||||
5,464 | MaxLinear, Inc. * | 111,466 | ||||||
1,434 | Mellanox Technologies Ltd. * | 133,118 | ||||||
12,413 | Oclaro, Inc. * | 100,173 | ||||||
1,622 | Power Integrations, Inc. | 102,770 | ||||||
9,797 | Rambus, Inc. * | 85,430 | ||||||
1,939 | Semtech Corp. * | 103,426 | ||||||
1,158 | Silicon Laboratories, Inc. * | 102,332 | ||||||
2,074 | Silicon Motion Technology Corp. - ADR | 74,394 | ||||||
2,322 | Synaptics, Inc. * | 89,304 | ||||||
5,119 | Vishay Intertechnology, Inc. | 106,731 | ||||||
7,404 | Xperi Corp. | 104,396 | ||||||
2,252,257 | ||||||||
SOFTWARE - 5.0% | ||||||||
3,887 | ACI Worldwide, Inc. * | 112,257 | ||||||
7,698 | Allscripts Healthcare Solutions, Inc. * | 78,597 | ||||||
1,053 | Blackbaud, Inc. | 77,132 | ||||||
1,555 | Bottomline Technologies de, Inc. * | 85,634 | ||||||
4,633 | Box, Inc. * | 87,054 | ||||||
1,613 | CommVault Systems, Inc. * | 95,070 | ||||||
1,915 | Cornerstone OnDemand, Inc. * | 104,597 |
See accompanying notes to financial statements.
32
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
SOFTWARE (continued) - 5.0% | ||||||||
1,900 | Envestnet, Inc. * | $ | 103,816 | |||||
4,047 | Evolent Health, Inc. * | 104,008 | ||||||
6,883 | FireEye, Inc. * | 137,729 | ||||||
742 | HubSpot, Inc. * | 103,160 | ||||||
10,561 | Inovalon Holdings, Inc. * | 140,461 | ||||||
2,162 | LiveRamp Holdings, Inc. * | 102,263 | ||||||
1,271 | LogMeIn, Inc. | 117,224 | ||||||
749 | MicroStrategy, Inc. * | 97,100 | ||||||
1,146 | New Relic, Inc. * | 99,920 | ||||||
1,574 | Omnicell, Inc. * | 121,560 | ||||||
712 | Paycom Software, Inc. * | 94,532 | ||||||
1,366 | Paylocity Holding Corp. * | 91,631 | ||||||
1,764 | Pegasystems, Inc. | 95,238 | ||||||
2,622 | Progress Software Corp. | 92,190 | ||||||
1,406 | Qualys, Inc. * | 110,737 | ||||||
1,734 | RealPage, Inc. * | 89,440 | ||||||
8,370 | TiVo Corp. | 82,863 | ||||||
2,237 | Verint Systems, Inc. * | 101,627 | ||||||
2,525,840 | ||||||||
SPECIALTY FINANCE - 2.0% | ||||||||
5,265 | Aircastle Ltd. | 98,192 | ||||||
5,777 | Apollo Commercial Real Estate Finance, Inc. | 109,416 | ||||||
3,330 | Cardtronics PLC * | 108,025 | ||||||
1,183 | Ellie Mae, Inc. * | 79,580 | ||||||
1,285 | Green Dot Corp. * | 107,092 | ||||||
6,743 | Invesco Mortgage Capital, Inc. | 105,326 | ||||||
8,499 | MGIC Investment Corp. * | 99,523 | ||||||
1,833 | Nelnet, Inc. | 99,807 | ||||||
2,973 | PRA Group, Inc. * | 90,736 | ||||||
2,062 | Walker & Dunlop, Inc. | 97,388 | ||||||
995,085 | ||||||||
TECHNOLOGY SERVICES - 1.4% | ||||||||
586 | CACI International, Inc. * | 96,637 | ||||||
1,681 | ExlService Holdings, Inc. * | 97,431 | ||||||
1,775 | ManTech International Corp. | 99,932 | ||||||
1,503 | Medidata Solutions, Inc.* | 116,047 | ||||||
7,422 | NIC, Inc. | 96,486 | ||||||
6,649 | Travelport Worldwide Ltd. | 101,597 | ||||||
2,758 | WageWorks, Inc. * | 91,924 | ||||||
700,054 | ||||||||
TELECOMMUNICATIONS - 1.5% | ||||||||
5,143 | 8x8, Inc. * | 101,369 | ||||||
2,031 | Cogent Communications Holdings, Inc. | 98,483 | ||||||
8,488 | Consolidated Communications Holdings, Inc. | 116,795 | ||||||
1,218 | RingCentral, Inc. * | 100,972 | ||||||
3,677 | Telephone & Data Systems, Inc. | 131,379 |
See accompanying notes to financial statements.
33
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
TELECOMMUNICATIONS (continued) - 1.5% | ||||||||
2,530 | United States Cellular Corp. * | $ | 141,326 | |||||
7,959 | Vonage Holdings Corp. * | 84,286 | ||||||
774,610 | ||||||||
TRANSPORTATION & LOGISTICS - 1.6% | ||||||||
1,623 | Forward Air Corp. | 105,949 | ||||||
5,546 | Heartland Express, Inc. | 115,080 | ||||||
2,339 | Hub Group, Inc. * | 103,945 | ||||||
3,175 | Knight-Swift Transportation Holdings, Inc. | 110,046 | ||||||
910 | Landstar System, Inc. | 99,263 | ||||||
2,524 | Mobile Mini, Inc. | 102,020 | ||||||
2,710 | Navistar International Corp. * | 86,828 | ||||||
3,127 | Werner Enterprises, Inc. | 105,880 | ||||||
829,011 | ||||||||
UTILITIES - 4.4% | ||||||||
1,399 | ALLETE, Inc. | 113,851 | ||||||
1,869 | American States Water Co. | 125,372 | ||||||
2,173 | Avista Corp. | 113,039 | ||||||
1,857 | Black Hills Corp. | 122,952 | ||||||
2,688 | California Water Service Group | 122,895 | ||||||
5,593 | Clearway Energy, Inc. | 102,128 | ||||||
1,862 | El Paso Electric Co. | 103,062 | ||||||
3,194 | Hawaiian Electric Industries, Inc. | 122,394 | ||||||
1,777 | MGE Energy, Inc. | 117,442 | ||||||
2,388 | New Jersey Resources Corp. | 115,890 | ||||||
2,387 | NextEra Energy Partners LP | 111,473 | ||||||
1,608 | Northwest Natural Gas Co. | 106,659 | ||||||
1,894 | NorthWestern Corp. | 121,140 | ||||||
1,345 | ONE Gas, Inc. | 114,446 | ||||||
2,002 | Ormat Technologies, Inc. | 112,292 | ||||||
2,296 | Otter Tail Corp. | 112,320 | ||||||
5,461 | Pattern Energy Group, Inc. | 112,988 | ||||||
3,074 | South Jersey Industries, Inc. | 95,909 | ||||||
4,488 | Suburban Propane Partners LP | 104,840 | ||||||
9,142 | TerraForm Power, Inc. * | 105,133 | ||||||
2,256,225 |
See accompanying notes to financial statements.
34
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
WASTE & ENVIRONMENT SERVICES & EQUIPMENT - 0.8% | ||||||||
1,579 | Clean Harbors, Inc. * | $ | 101,893 | |||||
6,342 | Covanta Holding Corp. | 105,024 | ||||||
1,643 | ESCO Technologies, Inc. | 115,470 | ||||||
1,597 | Tetra Tech, Inc. | 97,353 | ||||||
419,740 | ||||||||
TOTAL COMMON STOCKS (Cost $51,154,443) | 49,685,677 | |||||||
TOTAL INVESTMENTS - 97.8% (Cost $51,154,443) | $ | 49,685,677 | ||||||
OTHER ASSETS LESS LIABILITIES - 2.2% | 1,102,551 | |||||||
NET ASSETS - 100.0% | $ | 50,788,228 |
* | Non - Income producing security |
ADR - American Depositary Receipt
NV - Naamloze vennootschap
LLC - Limited Liability Company
LP - Limited Partnership
PLC - Public Limited Company
REIT - Real Estate Investment Trust
SA - Société anonyme
See accompanying notes to financial statements.
35
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS |
November 30, 2018 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||
CORPORATE BONDS - 98.5% | ||||||||||||
AEROSPACE & DEFENSE - 3.0% | ||||||||||||
550,000 | General Dynamics Corp. | 2.125 | 8/15/2026 | $ | 491,535 | |||||||
737,000 | General Dynamics Corp. | 2.250 | 11/15/2022 | 708,124 | ||||||||
299,000 | General Dynamics Corp. | 3.875 | 7/15/2021 | 302,758 | ||||||||
20,000 | Harris Corp. | 3.832 | 4/27/2025 | 19,439 | ||||||||
100,000 | L3 Technologies, Inc. | 4.950 | 2/15/2021 | 102,322 | ||||||||
100,000 | L3 Technologies, Inc. | 3.850 | 12/15/2026 | 96,329 | ||||||||
1,720,507 | ||||||||||||
APPAREL & TEXTILE PRODUCTS - 0.7% | ||||||||||||
391,000 | VF Corp. | 3.500 | 9/1/2021 | 391,428 | ||||||||
AUTO PARTS MANUFACTURING - 0.7% | ||||||||||||
414,000 | Aptiv PLC | 4.250 | 1/15/2026 | 404,997 | ||||||||
BANKS - 0.5% | ||||||||||||
269,000 | People’s United Financial, Inc. | 3.650 | 12/6/2022 | 266,734 | ||||||||
BIOTECHNOLOGY - 2.5% | ||||||||||||
414,000 | Celgene Corp. | 2.250 | 5/15/2019 | 412,340 | ||||||||
437,000 | Celgene Corp. | 3.950 | 10/15/2020 | 441,289 | ||||||||
462,000 | Celgene Corp. | 3.625 | 5/15/2024 | 448,486 | ||||||||
125,000 | Celgene Corp. | 3.875 | 8/15/2025 | 120,083 | ||||||||
1,422,198 | ||||||||||||
CHEMICALS - 2.0% | ||||||||||||
250,000 | LyondellBasell Industries NV | 5.000 | 4/15/2019 | 250,431 | ||||||||
250,000 | LyondellBasell Industries NV | 6.000 | 11/15/2021 | 262,872 | ||||||||
275,000 | LyondellBasell Industries NV | 5.750 | 4/15/2024 | 293,881 | ||||||||
341,000 | PPG Industries, Inc. | 3.600 | 11/15/2020 | 342,551 | ||||||||
1,149,735 | ||||||||||||
CONSUMER FINANCE - 1.3% | ||||||||||||
480,000 | Fidelity National Information Services, Inc. | 4.500 | 10/15/2022 | 492,099 | ||||||||
275,000 | Fiserv, Inc. | 3.500 | 10/1/2022 | 271,509 | ||||||||
763,608 | ||||||||||||
CONSUMER SERVICES - 0.1% | ||||||||||||
58,000 | Block Financial LLC | 5.500 | 11/1/2022 | 59,757 | ||||||||
CONTAINERS & PACKAGING - 2.1% | ||||||||||||
437,000 | Bemis Co., Inc. | 6.800 | 8/1/2019 | 446,808 | ||||||||
275,000 | International Paper Co. | 3.650 | 6/15/2024 | 273,033 | ||||||||
532,000 | International Paper Co. | 3.000 | 2/15/2027 | 479,844 | ||||||||
1,199,685 | ||||||||||||
DEPARTMENT STORES - 0.2% | ||||||||||||
100,000 | Kohl’s Corp. | 4.250 | 7/17/2025 | 98,142 | ||||||||
ELECTRICAL EQUIPMENT MANUFACTURING - 2.1% | ||||||||||||
369,000 | Amphenol Corp. | 2.550 | 1/30/2019 | 368,626 | ||||||||
437,000 | Amphenol Corp. | 4.000 | 2/1/2022 | 443,253 | ||||||||
407,000 | Roper Technologies, Inc. | 3.800 | 12/15/2026 | 390,180 | ||||||||
1,202,059 | ||||||||||||
See accompanying notes to financial statements.
36
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||
EXPLORATION & PRODUCTION - 7.4% | ||||||||||||
562,000 | ConocoPhillips Co. | 2.400 | 12/15/2022 | $ | 539,167 | |||||||
562,000 | ConocoPhillips Co. | 3.350 | 11/15/2024 | 551,929 | ||||||||
537,000 | EOG Resources, Inc. | 5.625 | 6/1/2019 | 542,885 | ||||||||
100,000 | EOG Resources, Inc. | 2.450 | 4/1/2020 | 98,708 | ||||||||
462,000 | EOG Resources, Inc. | 2.625 | 3/15/2023 | 440,464 | ||||||||
135,000 | EOG Resources, Inc. | 4.150 | 1/15/2026 | 136,145 | ||||||||
345,000 | Noble Energy, Inc. | 3.900 | 11/15/2024 | 330,315 | ||||||||
437,000 | Occidental Petroleum Corp. | 4.100 | 2/1/2021 | 443,147 | ||||||||
100,000 | Occidental Petroleum Corp. | 2.600 | 4/15/2022 | 96,736 | ||||||||
562,000 | Occidental Petroleum Corp. | 2.700 | 2/15/2023 | 538,513 | ||||||||
582,000 | Occidental Petroleum Corp. | 3.400 | 4/15/2026 | 561,813 | ||||||||
4,279,822 | ||||||||||||
FINANCIAL SERVICES - 3.0% | ||||||||||||
300,000 | Cboe Global Markets, Inc. | 3.650 | 1/12/2027 | 288,183 | ||||||||
322,000 | Invesco Finance PLC | 4.000 | 1/30/2024 | 319,117 | ||||||||
445,000 | Nasdaq, Inc. | 5.550 | 1/15/2020 | 455,968 | ||||||||
139,000 | Nasdaq, Inc. | 4.250 | 6/1/2024 | 139,362 | ||||||||
552,000 | Nasdaq, Inc. | 3.850 | 6/30/2026 | 531,298 | ||||||||
1,733,928 | ||||||||||||
FOOD & BEVERAGE - 3.7% | ||||||||||||
100,000 | JM Smucker Co. | 2.500 | 3/15/2020 | 98,739 | ||||||||
100,000 | JM Smucker Co. | 3.500 | 10/15/2021 | 99,185 | ||||||||
100,000 | JM Smucker Co. | 3.500 | 3/15/2025 | 95,126 | ||||||||
552,000 | Keurig Dr Pepper, Inc. | 3.400 | 11/15/2025 | 512,077 | ||||||||
552,000 | Keurig Dr Pepper, Inc. | 3.430 | 6/15/2027 | 500,824 | ||||||||
413,000 | Mead Johnson Nutrition Co. | 4.900 | 11/1/2019 | 418,981 | ||||||||
439,000 | Mead Johnson Nutrition Co. | 4.125 | 11/15/2025 | 443,074 | ||||||||
2,168,006 | ||||||||||||
HEALTHCARE FACILITIES & SERVICES - 4.0% | ||||||||||||
414,000 | AmerisourceBergen Corp. | 3.500 | 11/15/2021 | 411,692 | ||||||||
462,000 | AmerisourceBergen Corp. | 3.400 | 5/15/2024 | 443,530 | ||||||||
322,000 | AmerisourceBergen Corp. | 3.250 | 3/1/2025 | 303,749 | ||||||||
514,000 | Express Scripts Holding Co. | 3.900 | 2/15/2022 | 514,738 | ||||||||
125,000 | Express Scripts Holding Co. | 4.500 | 2/25/2026 | 126,263 | ||||||||
582,000 | Express Scripts Holding Co. | 3.400 | 3/1/2027 | 536,248 | ||||||||
2,336,220 | ||||||||||||
HOME IMPROVEMENT- 0.7% | ||||||||||||
414,000 | Stanley Black & Decker, Inc. | 3.400 | 12/1/2021 | 413,039 | ||||||||
INDUSTRIAL OTHER - 0.9% | ||||||||||||
552,000 | Fluor Corp. | 3.500 | 12/15/2024 | 533,950 | ||||||||
LIFE INSURANCE - 0.7% | ||||||||||||
391,000 | Unum Group | 5.625 | 9/15/2020 | 403,816 | ||||||||
See accompanying notes to financial statements.
37
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||
MACHINERY MANUFACTURING - 4.7% | ||||||||||||
192,000 | Caterpillar Financial Services Corp. | 7.150 | 2/15/2019 | $ | 193,474 | |||||||
437,000 | Dover Corp. | 4.300 | 3/1/2021 | 445,191 | ||||||||
215,000 | Illinois Tool Works, Inc. | 1.950 | 3/1/2019 | 214,559 | ||||||||
446,000 | Illinois Tool Works, Inc. | 6.250 | 4/1/2019 | 450,851 | ||||||||
350,000 | Illinois Tool Works, Inc. | 2.650 | 11/15/2026 | 320,133 | ||||||||
138,000 | John Deere Capital Corp. | 1.950 | 3/4/2019 | 137,699 | ||||||||
552,000 | John Deere Capital Corp. | 3.050 | 1/6/2028 | 517,215 | ||||||||
462,000 | Parker-Hannifin Corp. | 3.300 | 11/21/2024 | 452,284 | ||||||||
20,000 | Pentair Finance SA | 2.650 | 12/1/2019 | 19,857 | ||||||||
2,751,263 | ||||||||||||
MASS MERCHANTS - 0.3% | ||||||||||||
192,000 | Costco Wholesale Corporation | 1.700 | 12/15/2019 | 189,573 | ||||||||
MEDICAL EQUIPMENT & DEVICES MANUFACTURING - 0.4% | ||||||||||||
142,000 | Zimmer Biomet Holdings, Inc. | 4.625 | 11/30/2019 | 143,483 | ||||||||
125,000 | Zimmer Biomet Holdings, Inc. | 3.550 | 4/1/2025 | 117,904 | ||||||||
261,387 | ||||||||||||
METALS & MINING - 0.6% | ||||||||||||
316,000 | Newmont Mining Corp. | 5.125 | 10/1/2019 | 320,882 | ||||||||
OIL & GAS SERVICES & EQUIPMENT - 1.8% | ||||||||||||
562,000 | Halliburton Co. | 3.800 | 11/15/2025 | 537,659 | ||||||||
562,000 | National Oilwell Varco, Inc. | 2.600 | 12/1/2022 | 529,682 | ||||||||
1,067,341 | ||||||||||||
PHARMACEUTICALS - 2.5% | ||||||||||||
322,000 | AbbVie, Inc. | 2.300 | 5/14/2021 | 311,504 | ||||||||
545,000 | AbbVie, Inc. | 2.850 | 5/14/2023 | 519,978 | ||||||||
125,000 | AbbVie, Inc. | 3.600 | 5/14/2025 | 119,410 | ||||||||
562,000 | AbbVie, Inc. | 3.200 | 5/14/2026 | 517,353 | ||||||||
1,468,245 | ||||||||||||
PIPELINE - 3.3% | ||||||||||||
40,000 | Kinder Morgan Energy Partners LP | 9.000 | 2/1/2019 | 40,359 | ||||||||
65,000 | Kinder Morgan Energy Partners LP | 6.850 | 2/15/2020 | 67,373 | ||||||||
140,000 | Kinder Morgan Energy Partners LP | 5.300 | 9/15/2020 | 143,441 | ||||||||
100,000 | Kinder Morgan Energy Partners LP | 3.950 | 9/1/2022 | 99,141 | ||||||||
39,000 | Kinder Morgan Energy Partners LP | 4.300 | 5/1/2024 | 38,696 | ||||||||
125,000 | Kinder Morgan, Inc. | 4.300 | 6/1/2025 | 122,242 | ||||||||
462,000 | ONEOK Partners LP | 4.900 | 3/15/2025 | 467,621 | ||||||||
437,000 | Williams Partners LP | 5.250 | 3/15/2020 | 444,991 | ||||||||
100,000 | Williams Partners LP | 3.350 | 8/15/2022 | 97,011 | ||||||||
125,000 | Williams Partners LP | 4.300 | 3/4/2024 | 123,529 | ||||||||
160,000 | Williams Partners LP | 3.900 | 1/15/2025 | 154,597 | ||||||||
145,000 | Williams Partners LP | 4.000 | 9/15/2025 | 139,601 | ||||||||
1,938,602 | ||||||||||||
RAILROAD - 4.8% | ||||||||||||
360,000 | Norfolk Southern Corp. | 3.250 | 12/1/2021 | 357,671 | ||||||||
414,000 | Norfolk Southern Corp. | 3.000 | 4/1/2022 | 407,410 | ||||||||
117,000 | Norfolk Southern Corp. | 3.850 | 1/15/2024 | 117,124 | ||||||||
447,000 | Norfolk Southern Corp. | 2.900 | 6/15/2026 | 417,545 | ||||||||
See accompanying notes to financial statements.
38
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||
RAILROAD (continued) - 4.8% | ||||||||||||
537,000 | Union Pacific Corp. | 4.000 | 2/1/2021 | $ | 543,038 | |||||||
462,000 | Union Pacific Corp. | 3.646 | 2/15/2024 | 458,853 | ||||||||
195,000 | Union Pacific Corp. | 3.750 | 3/15/2024 | 194,723 | ||||||||
125,000 | Union Pacific Corp. | 2.750 | 3/1/2026 | 115,343 | ||||||||
183,000 | Union Pacific Corp. | 3.000 | 4/15/2027 | 169,868 | ||||||||
2,781,575 | ||||||||||||
REAL ESTATE - 17.1% | ||||||||||||
286,000 | American Tower Corp. | 3.400 | 2/15/2019 | 286,080 | ||||||||
100,000 | American Tower Corp. | 3.125 | 1/15/2027 | 90,199 | ||||||||
437,000 | AvalonBay Communities, Inc. | 2.950 | 9/15/2022 | 427,235 | ||||||||
40,000 | AvalonBay Communities, Inc. | 2.850 | 3/15/2023 | 38,681 | ||||||||
74,000 | Boston Properties LP | 5.875 | 10/15/2019 | 75,286 | ||||||||
173,000 | Boston Properties LP | 5.625 | 11/15/2020 | 178,999 | ||||||||
537,000 | Boston Properties LP | 4.125 | 5/15/2021 | 542,133 | ||||||||
552,000 | Boston Properties LP | 2.750 | 10/1/2026 | 494,673 | ||||||||
437,000 | CC Holdings GS V LLC / Crown Castle GS III Corp. | 3.849 | 4/15/2023 | 429,855 | ||||||||
100,000 | Crown Castle International Corp. | 5.250 | 1/15/2023 | 103,580 | ||||||||
349,000 | ERP Operating LP | 4.625 | 12/15/2021 | 358,610 | ||||||||
207,000 | ERP Operating LP | 3.000 | 4/15/2023 | 201,701 | ||||||||
43,000 | HCP, Inc. | 4.000 | 12/1/2022 | 42,602 | ||||||||
437,000 | Kimco Realty Corp. | 3.400 | 11/1/2022 | 425,598 | ||||||||
100,000 | Kimco Realty Corp. | 2.700 | 3/1/2024 | 93,119 | ||||||||
437,000 | Prologis LP | 4.250 | 8/15/2023 | 449,498 | ||||||||
437,000 | Prologis LP | 3.750 | 11/1/2025 | 433,619 | ||||||||
100,000 | Realty Income Corp. | 3.000 | 1/15/2027 | 91,148 | ||||||||
100,000 | Simon Property Group LP | 2.200 | 2/1/2019 | 99,837 | ||||||||
100,000 | Simon Property Group LP | 4.375 | 3/1/2021 | 101,767 | ||||||||
437,000 | Simon Property Group LP | 2.500 | 7/15/2021 | 425,956 | ||||||||
509,000 | Simon Property Group LP | 4.125 | 12/1/2021 | 516,909 | ||||||||
230,000 | Simon Property Group LP | 2.750 | 2/1/2023 | 221,639 | ||||||||
422,000 | Simon Property Group LP | 3.750 | 2/1/2024 | 419,369 | ||||||||
537,000 | Ventas Realty LP | 4.250 | 3/1/2022 | 544,817 | ||||||||
437,000 | Ventas Realty LP | 3.750 | 5/1/2024 | 426,488 | ||||||||
437,000 | Ventas Realty LP | 3.500 | 2/1/2025 | 416,045 | ||||||||
10,000 | Ventas Realty LP | 4.125 | 1/15/2026 | 9,793 | ||||||||
207,000 | Ventas Realty LP | 3.250 | 10/15/2026 | 190,295 | ||||||||
391,000 | Welltower, Inc. | 4.125 | 4/1/2019 | 391,288 | ||||||||
100,000 | Welltower, Inc. | 6.125 | 4/15/2020 | 103,184 | ||||||||
414,000 | Welltower, Inc. | 4.950 | 1/15/2021 | 422,653 | ||||||||
437,000 | Welltower, Inc. | 4.500 | 1/15/2024 | 444,080 | ||||||||
437,000 | Welltower, Inc. | 4.000 | 6/1/2025 | 425,002 | ||||||||
9,921,738 | ||||||||||||
REFINING & MARKETING - 3.5% | ||||||||||||
462,000 | Marathon Petroleum Corp. | 3.625 | 9/15/2024 | 443,898 | ||||||||
537,000 | Phillips 66 | 4.300 | 4/1/2022 | 545,777 | ||||||||
514,000 | Valero Energy Corp. | 6.125 | 2/1/2020 | 528,767 | ||||||||
552,000 | Valero Energy Corp. | 3.400 | 9/15/2026 | 503,355 | ||||||||
2,021,797 | ||||||||||||
See accompanying notes to financial statements.
39
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||
RETAIL - CONSUMER DISCRETIONARY - 7.9% | ||||||||||||
280,000 | AutoZone, Inc. | 4.000 | 11/15/2020 | $ | 282,323 | |||||||
150,000 | AutoZone, Inc. | 2.500 | 4/15/2021 | 146,168 | ||||||||
462,000 | AutoZone, Inc. | 3.125 | 7/15/2023 | 447,399 | ||||||||
552,000 | AutoZone, Inc. | 3.125 | 4/21/2026 | 508,423 | ||||||||
400,000 | AutoZone, Inc. | 3.750 | 6/1/2027 | 379,337 | ||||||||
514,000 | Lowe’s Companies, Inc. | 4.625 | 4/15/2020 | 520,539 | ||||||||
322,000 | Lowe’s Companies, Inc. | 3.750 | 4/15/2021 | 324,724 | ||||||||
437,000 | Lowe’s Companies, Inc. | 3.800 | 11/15/2021 | 441,830 | ||||||||
437,000 | Lowe’s Companies, Inc. | 3.120 | 4/15/2022 | 432,245 | ||||||||
347,000 | Lowe’s Companies, Inc. | 3.125 | 9/15/2024 | 338,001 | ||||||||
145,000 | Lowe’s Companies, Inc. | 3.375 | 9/15/2025 | 140,732 | ||||||||
532,000 | Lowe’s Companies, Inc. | 2.500 | 4/15/2026 | 484,001 | ||||||||
125,000 | Lowe’s Companies, Inc. | 3.100 | 5/3/2027 | 117,889 | ||||||||
44,000 | O’Reilly Automotive, Inc. | 4.875 | 1/14/2021 | 45,082 | ||||||||
4,608,693 | ||||||||||||
RETAIL - CONSUMER STAPLES - 2.5% | ||||||||||||
437,000 | Sysco Corp. | 2.600 | 6/12/2022 | 421,154 | ||||||||
437,000 | Sysco Corp. | 3.750 | 10/1/2025 | 424,402 | ||||||||
557,000 | Sysco Corp. | 3.300 | 7/15/2026 | 525,157 | ||||||||
100,000 | Sysco Corp. | 3.250 | 7/15/2027 | 93,064 | ||||||||
1,463,777 | ||||||||||||
SEMICONDUCTORS - 2.6% | ||||||||||||
439,000 | Analog Devices, Inc. | 3.900 | 12/15/2025 | 428,496 | ||||||||
687,000 | Broadcom Corp. | 2.375 | 1/15/2020 | 678,075 | ||||||||
200,000 | Broadcom Corp. | 3.875 | 1/15/2027 | 180,267 | ||||||||
230,000 | Lam Research Corp. | 3.800 | 3/15/2025 | 225,537 | ||||||||
1,512,375 | ||||||||||||
UTILITIES - 10.9% | ||||||||||||
276,000 | CenterPoint Energy Resources Corp. | 4.500 | 1/15/2021 | 279,451 | ||||||||
250,000 | Dominion Energy, Inc. | 1.875 | 1/15/2019 | 249,625 | ||||||||
250,000 | Dominion Energy, Inc. + | 2.962 | 7/1/2019 | 249,152 | ||||||||
437,000 | Dominion Energy, Inc. | 5.200 | 8/15/2019 | 442,703 | ||||||||
100,000 | Dominion Energy, Inc. + | 2.579 | 7/1/2020 | 98,366 | ||||||||
250,000 | Dominion Energy, Inc. | 4.450 | 3/15/2021 | 253,426 | ||||||||
482,000 | Dominion Energy, Inc. | 3.625 | 12/1/2024 | 470,867 | ||||||||
462,000 | Dominion Energy, Inc. | 3.900 | 10/1/2025 | 451,194 | ||||||||
230,000 | Entergy Texas, Inc. | 7.125 | 2/1/2019 | 231,212 | ||||||||
70,000 | Kentucky Utilities Co. | 3.300 | 10/1/2025 | 67,813 | ||||||||
125,000 | NiSource Finance Corp. | 3.490 | 5/15/2027 | 117,739 | ||||||||
537,000 | NSTAR Electric Co. | 2.375 | 10/15/2022 | 515,450 | ||||||||
322,000 | PPL Capital Funding, Inc. | 3.000 | 9/15/2021 | 320,120 | ||||||||
10,000 | PPL Capital Funding, Inc. | 2.500 | 9/1/2022 | 9,642 | ||||||||
414,000 | PPL Electric Utilities Corp. | 4.200 | 6/15/2022 | 417,209 | ||||||||
275,000 | PPL Electric Utilities Corp. | 3.500 | 12/1/2022 | 271,669 | ||||||||
537,000 | Public Service Co of Colorado | 5.125 | 6/1/2019 | 542,321 | ||||||||
437,000 | Public Service Co of Colorado | 3.200 | 11/15/2020 | 436,057 | ||||||||
See accompanying notes to financial statements.
40
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||
UTILITIES (continued) - 10.9% | ||||||||||||
462,000 | Virginia Electric & Power Co. | 2.750 | 3/15/2023 | $ | 446,206 | |||||||
462,000 | WEC Energy Group, Inc. | 3.550 | 6/15/2025 | 450,454 | ||||||||
6,320,676 | ||||||||||||
TOTAL CORPORATE BONDS (Cost $58,358,381) | 57,175,555 | |||||||||||
TOTAL INVESTMENTS - 98.5% (Cost - $58,358,381) | $ | 57,175,555 | ||||||||||
OTHER ASSETS LESS LIABILITIES - 1.5% | 855,080 | |||||||||||
NET ASSETS - 100.0% | $ | 58,030,635 | ||||||||||
NV - Naamloze vennootschap
LLC - Limited Liability Company
LP - Limited Partnership
PLC - Public Limited Company
SA - Société Anonyme
+ | Step Coupon; the interest rate shown is the rate in effect as of November 30, 2018. |
See accompanying notes to financial statements.
41
Inspire 100 ETF |
PORTFOLIO OF INVESTMENTS |
November 30, 2018 |
Shares | Value | |||||||
COMMON STOCKS - 99.2% | ||||||||
AEROSPACE & DEFENSE - 2.7% | ||||||||
3,812 | General Dynamics Corp. | $ | 704,801 | |||||
1,511 | Harris Corp. | 215,997 | ||||||
570 | Huntington Ingalls Industries, Inc. | 122,835 | ||||||
1,043,633 | ||||||||
AUTOMOTIVE - 2.6% | ||||||||
3,498 | Aptiv PLC | 251,506 | ||||||
2,195 | Tesla, Inc. * | 769,304 | ||||||
1,020,810 | ||||||||
BANKING - 0.4% | ||||||||
669 | SVB Financial Group * | 170,468 | ||||||
BIOTECHNOLOGY & PHARMACEUTICAL - 8.4% | ||||||||
19,399 | AbbVie, Inc. | 1,828,744 | ||||||
2,884 | Alexion Pharmaceuticals, Inc. * | 355,165 | ||||||
1,371 | Regeneron Pharmaceuticals, Inc. * | 501,306 | ||||||
3,246 | Vertex Pharmaceuticals, Inc. * | 586,844 | ||||||
3,272,059 | ||||||||
CHEMICALS - 0.8% | ||||||||
1,433 | Albemarle Corp. | 138,026 | ||||||
1,182 | International Flavors & Fragrances, Inc. | 167,407 | ||||||
305,433 | ||||||||
COMMERCIAL SERVICES - 2.2% | ||||||||
1,377 | Cintas Corp. | 258,022 | ||||||
3,708 | Ecolab, Inc. | 595,097 | ||||||
853,119 | ||||||||
CONSTRUCTION MATERIALS - 0.9% | ||||||||
809 | Martin Marietta Materials, Inc. | 154,268 | ||||||
1,712 | Vulcan Materials Co. | 180,976 | ||||||
335,244 | ||||||||
CONSUMER PRODUCTS - 1.9% | ||||||||
17,916 | Keurig Dr Pepper, Inc. | 483,732 | ||||||
1,697 | McCormick & Co., Inc. | 254,550 | ||||||
738,282 | ||||||||
CONTAINERS & PACKAGING - 1.0% | ||||||||
5,241 | International Paper Co. | 242,082 | ||||||
3,357 | WestRock Co. | 158,148 | ||||||
400,230 | ||||||||
DISTRIBUTORS - CONSUMER STAPLES - 1.1% | ||||||||
6,739 | Sysco Corp. | 454,209 | ||||||
ELECTRICAL EQUIPMENT - 9.8% | ||||||||
2,936 | AMETEK, Inc. | 215,590 | ||||||
3,898 | Amphenol Corp. | 342,790 | ||||||
2,200 | AO Smith Corp. | 104,236 | ||||||
5,602 | Eaton Corp PLC | 431,018 | ||||||
See accompanying notes to financial statements.
42
Inspire 100 ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
ELECTRICAL EQUIPMENT (continued) - 9.8% | ||||||||
8,044 | Emerson Electric Co. | $ | 543,131 | |||||
9,586 | Honeywell International, Inc. | 1,406,746 | ||||||
11,919 | Johnson Controls International PLC | 414,543 | ||||||
1,544 | Resideo Technologies, Inc. * | 31,853 | ||||||
4,455 | TE Connectivity Ltd. | 342,723 | ||||||
3,832,630 | ||||||||
HARDWARE - 2.2% | ||||||||
2,438 | Garmin Ltd. | 162,517 | ||||||
4,427 | Juniper Networks, Inc. | 127,099 | ||||||
3,379 | NetApp, Inc. | 225,954 | ||||||
3,621 | Seagate Technology PLC | 156,029 | ||||||
3,809 | Western Digital Corp. | 172,890 | ||||||
844,489 | ||||||||
HEALTHCARE FACILITIES & SERVICES - 5.1% | ||||||||
2,832 | AmerisourceBergen Corp. | 251,765 | ||||||
2,632 | Centene Corp. * | 374,402 | ||||||
2,239 | DaVita, Inc. * | 147,908 | ||||||
7,193 | Express Scripts Holding Co. * | 729,874 | ||||||
1,980 | Henry Schein, Inc. * | 176,616 | ||||||
2,405 | IQVIA Holdings, Inc. * | 300,793 | ||||||
1,981,358 | ||||||||
HOME & OFFICE PRODUCTS - 0.9% | ||||||||
723 | Snap-on, Inc. | 120,191 | ||||||
1,942 | Stanley Black & Decker, Inc. | 254,111 | ||||||
374,302 | ||||||||
INDUSTRIAL SERVICES - 0.3% | ||||||||
1,066 | United Rentals, Inc. * | 124,861 | ||||||
INSTITUTIONAL FINANCIAL SERVICES - 0.5% | ||||||||
2,115 | Nasdaq, Inc. | 193,142 | ||||||
INSURANCE - 1.2% | ||||||||
10,039 | Aflac, Inc. | 459,184 | ||||||
IRON & STEEL - 0.6% | ||||||||
4,084 | Nucor Corp. | 246,714 | ||||||
MACHINERY - 4.7% | ||||||||
4,081 | Deere & Co. | 632,065 | ||||||
1,889 | Dover Corp. | 160,357 | ||||||
4,337 | Illinois Tool Works, Inc. | 603,060 | ||||||
1,677 | Parker-Hannifin Corp. | 288,511 | ||||||
2,284 | Xylem, Inc. | 166,687 | ||||||
1,850,680 | ||||||||
See accompanying notes to financial statements.
43
Inspire 100 ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
MEDICAL EQUIPMENT & DEVICES - 3.7% | ||||||||
4,078 | Agilent Technologies, Inc. | $ | 295,043 | |||||
940 | Align Technology, Inc. * | 216,097 | ||||||
1,867 | Illumina, Inc. * | 630,112 | ||||||
2,610 | Zimmer Biomet Holdings, Inc. | 305,422 | ||||||
1,446,674 | ||||||||
METALS & MINING - 0.5% | ||||||||
6,803 | Newmont Mining Corp. | 220,009 | ||||||
OIL, GAS & COAL - 7.2% | ||||||||
3,098 | Cheniere Energy, Inc. * | 189,350 | ||||||
15,006 | ConocoPhillips | 993,097 | ||||||
11,261 | Halliburton Co. | 353,933 | ||||||
2,197 | Pioneer Natural Resources Co. | 324,607 | ||||||
17,973 | Schlumberger Ltd. | 810,582 | ||||||
5,674 | TechnipFMC PLC | 131,013 | ||||||
2,802,582 | ||||||||
REAL ESTATE - 9.7% | ||||||||
5,655 | American Tower Corp. | 930,191 | ||||||
5,340 | Crown Castle International Corp. | 613,566 | ||||||
1,013 | Equinix, Inc. | 390,288 | ||||||
4,938 | Equity Residential | 351,832 | ||||||
952 | Federal Realty Investment Trust | 125,750 | ||||||
8,029 | Prologis, Inc. | 540,673 | ||||||
3,978 | Simon Property Group, Inc. | 738,675 | ||||||
1,111 | SL Green Realty Corp. | 107,123 | ||||||
3,798,098 | ||||||||
RETAIL - DISCRETIONARY - 2.5% | ||||||||
10,251 | Lowe’s Cos, Inc. | 967,387 | ||||||
SEMICONDUCTORS - 7.4% | ||||||||
12,538 | Advanced Micro Devices, Inc. * | 267,059 | ||||||
4,906 | Analog Devices, Inc. | 450,960 | ||||||
15,193 | Micron Technology, Inc. * | 585,842 | ||||||
7,797 | NVIDIA Corp. | 1,274,264 | ||||||
3,311 | Xilinx, Inc. | 306,201 | ||||||
2,884,326 | ||||||||
SOFTWARE - 2.6% | ||||||||
1,739 | Citrix Systems, Inc. * | 189,499 | ||||||
1,183 | Palo Alto Networks, Inc. * | 204,600 | ||||||
1,888 | Synopsys, Inc. * | 173,583 | ||||||
2,698 | Workday, Inc. * | 442,472 | ||||||
1,010,154 | ||||||||
SPECIALTY FINANCE - 1.1% | ||||||||
5,297 | Fiserv, Inc. * | 419,152 | ||||||
See accompanying notes to financial statements.
44
Inspire 100 ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2018 |
Shares | Value | |||||||
TECHNOLOGY SERVICES - 3.7% | ||||||||
7,473 | Cognizant Technology Solutions Corp. | $ | 532,302 | |||||
1,549 | Equifax, Inc. | 159,036 | ||||||
1,159 | Gartner, Inc. * | 177,547 | ||||||
4,716 | Paychex, Inc. | 333,704 | ||||||
2,129 | Verisk Analytics, Inc. * | 262,548 | ||||||
1,465,137 | ||||||||
TRANSPORTATION & LOGISTICS - 4.1% | ||||||||
1,404 | JB Hunt Transport Services, Inc. | 149,329 | ||||||
9,472 | Union Pacific Corp. | 1,456,604 | ||||||
1,605,933 | ||||||||
TRANSPORTATION EQUIPMENT - 0.7% | ||||||||
4,478 | PACCAR, Inc. | 278,621 | ||||||
UTILITIES - 7.1% | ||||||||
2,993 | Alliant Energy Corp. | 135,852 | ||||||
6,297 | American Electric Power Co., Inc. | 489,529 | ||||||
2,317 | American Water Works Co., Inc. | 221,065 | ||||||
5,538 | CenterPoint Energy, Inc. | 155,119 | ||||||
8,418 | Dominion Energy, Inc. | 627,141 | ||||||
2,343 | Entergy Corp. | 203,982 | ||||||
4,053 | Eversource Energy | 276,982 | ||||||
6,482 | Public Service Enterprise Group, Inc. | 362,344 | ||||||
4,072 | WEC Energy Group, Inc. | 295,138 | ||||||
2,767,152 | ||||||||
WASTE & ENVIRONMENT SERVICES & EQUIPMENT - 1.6% | ||||||||
2,295 | Pentair PLC | 97,996 | ||||||
5,576 | Waste Management, Inc. | 522,750 | ||||||
620,746 | ||||||||
TOTAL COMMON STOCKS (Cost $39,597,035) | 38,786,818 | |||||||
TOTAL INVESTMENTS - 99.2% (Cost $39,597,035) | $ | 38,786,818 | ||||||
OTHER ASSETS LESS LIABILITIES - 0.8% | 297,768 | |||||||
NET ASSETS - 100.0% | $ | 39,084,586 | ||||||
* | Non-Income producing security. |
PLC - Public Limited Company
See accompanying notes to financial statements.
45
The Inspire ETFs |
STATEMENTS OF ASSETS AND LIABILITIES |
November 30, 2018 |
Inspire Global Hope | Inspire Small/Mid | Inspire Corporate | ||||||||||||||
ETF | Cap Impact ETF | Bond Impact ETF | Inspire 100 ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investment securities: | ||||||||||||||||
At cost | $ | 88,963,512 | $ | 51,154,443 | $ | 58,358,381 | $ | 39,597,035 | ||||||||
At value | $ | 86,613,765 | $ | 49,685,677 | $ | 57,175,555 | $ | 38,786,818 | ||||||||
Cash | 888,149 | 1,088,896 | 1,132,303 | 245,579 | ||||||||||||
Foreign currencies (Cost $186,950) | 185,788 | — | — | — | ||||||||||||
Dividends and interest receivable | 171,454 | 60,162 | 553,255 | 63,912 | ||||||||||||
Due from Adviser | — | — | — | 3,662 | ||||||||||||
Prepaid expenses | 3,348 | 1,480 | 1,099 | 914 | ||||||||||||
TOTAL ASSETS | 87,862,504 | 50,836,215 | 58,862,212 | 39,100,885 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payable for investments purchased | — | — | 634,202 | — | ||||||||||||
Distributions payable | — | — | 134,400 | — | ||||||||||||
Investment advisory fees payable | 29,887 | 9,538 | 19,818 | — | ||||||||||||
Payable to related parties | 7,148 | 4,531 | 7,726 | 6,258 | ||||||||||||
Accrued expenses and other liabilities | 55,230 | 33,918 | 35,431 | 10,041 | ||||||||||||
TOTAL LIABILITIES | 92,265 | 47,987 | 831,577 | 16,299 | ||||||||||||
NET ASSETS | $ | 87,770,239 | $ | 50,788,228 | $ | 58,030,635 | $ | 39,084,586 | ||||||||
Net Assets Consist Of: | ||||||||||||||||
Paid in capital | $ | 89,776,513 | $ | 51,452,656 | $ | 59,241,265 | $ | 39,812,550 | ||||||||
Accumulated losses | (2,006,274 | ) | (664,428 | ) | (1,210,630 | ) | (727,964 | ) | ||||||||
NET ASSETS | $ | 87,770,239 | $ | 50,788,228 | $ | 58,030,635 | $ | 39,084,586 | ||||||||
Net Asset Value Per Share: | ||||||||||||||||
Net Assets | $ | 87,770,239 | $ | 50,788,228 | $ | 58,030,635 | $ | 39,084,586 | ||||||||
Shares of beneficial interest outstanding ($0 par value, unlimited shares authorized) | 3,350,000 | 1,900,000 | 2,400,000 | 1,500,000 | ||||||||||||
Net asset value, offering and redemption price per share (Net Assets ÷ Shares Outstanding) | $ | 26.20 | $ | 26.73 | $ | 24.18 | $ | 26.06 | ||||||||
See accompanying notes to financial statements.
46
The Inspire ETFs |
STATEMENTS OF OPERATIONS |
For the Year Ended November 30, 2018 |
Inspire Global Hope | Inspire Small/Mid | Inspire Corporate | ||||||||||||||
ETF | Cap Impact ETF | Bond Impact ETF | Inspire 100 ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends | $ | 1,820,606 | $ | 710,152 | $ | — | $ | 631,236 | ||||||||
Interest | 12,211 | 5,591 | 1,150,436 | — | ||||||||||||
Less: Foreign withholding taxes | (96,436 | ) | (202 | ) | — | (57 | ) | |||||||||
TOTAL INVESTMENT INCOME | 1,736,381 | 715,541 | 1,150,436 | 631,179 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 223,071 | 127,077 | 119,019 | 71,898 | ||||||||||||
Administrative services | 67,396 | 59,053 | 68,818 | 43,918 | ||||||||||||
Custodian fees | 64,015 | 33,514 | 9,159 | 13,578 | ||||||||||||
Professional fees | 19,431 | 13,506 | 11,077 | 6,000 | ||||||||||||
Audit fees | 15,273 | 15,012 | 15,370 | 15,000 | ||||||||||||
Transfer agent fees | 14,305 | 9,474 | 11,332 | 13,211 | ||||||||||||
Printing and postage expenses | 13,904 | 8,018 | 4,947 | 5,728 | ||||||||||||
Legal fees | 10,915 | 3,494 | 1,822 | 7,110 | ||||||||||||
Trustees fees and expenses | 10,138 | 15,739 | 12,057 | 10,603 | ||||||||||||
Insurance expense | 2,798 | 1,637 | 367 | 367 | ||||||||||||
Other Expenses | 19,644 | 15,558 | 14,766 | 13,961 | ||||||||||||
TOTAL EXPENSES | 460,890 | 302,082 | 268,734 | 201,374 | ||||||||||||
Plus: Recapture of fees waived/reimbursed by the Adviser | 967 | — | — | — | ||||||||||||
Less: Fees waived/reimbursed by the Adviser | — | (39,292 | ) | (22,330 | ) | (117,184 | ) | |||||||||
NET EXPENSES | 461,857 | 262,790 | 246,404 | 84,190 | ||||||||||||
NET INVESTMENT INCOME | 1,274,524 | 452,751 | 904,032 | 546,989 | ||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
In-kind redemptions | 517,428 | 1,499,729 | (14,347 | ) | 123,733 | |||||||||||
Investments | 418,467 | 625,228 | (44,179 | ) | (49,102 | ) | ||||||||||
Foreign currency transactions | (90,488 | ) | 20 | — | — | |||||||||||
845,407 | 2,124,977 | (58,526 | ) | 74,631 | ||||||||||||
Net change in unrealized (depreciation) on: | ||||||||||||||||
Investments | (6,230,860 | ) | (2,983,608 | ) | (1,046,294 | ) | (941,689 | ) | ||||||||
Foreign currency translations | (9,228 | ) | — | — | — | |||||||||||
(6,240,088 | ) | (2,983,608 | ) | (1,046,294 | ) | (941,689 | ) | |||||||||
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS | (5,394,681 | ) | (858,631 | ) | (1,104,820 | ) | (867,058 | ) | ||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (4,120,157 | ) | $ | (405,880 | ) | $ | (200,788 | ) | $ | (320,069 | ) | ||||
See accompanying notes to financial statements.
47
Inspire Global Hope ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Year Ended | Period Ended | |||||||
November 30, 2018 | November 30, 2017 (a) | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 1,274,524 | $ | 534,305 | ||||
Net realized gain on investments and foreign currency transactions | 845,407 | 218,303 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations | (6,240,088 | ) | 3,886,765 | |||||
Net increase (decrease) in net assets resulting from operations | (4,120,157 | ) | 4,639,373 | |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
From net investment income | — | (433,285 | ) | |||||
Total distributions paid: * | (1,603,210 | ) | — | |||||
Net decrease in net assets resulting from distributions to shareholders | (1,603,210 | ) | (433,285 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 43,458,500 | 48,723,355 | ||||||
Cost of shares redeemed | (2,894,337 | ) | — | |||||
Net increase in net assets resulting from shares of beneficial interest | 40,564,163 | 48,723,355 | ||||||
TOTAL INCREASE IN NET ASSETS | 34,840,796 | 52,929,443 | ||||||
NET ASSETS | ||||||||
Beginning of Period | 52,929,443 | — | ||||||
End of Period** | $ | 87,770,239 | $ | 52,929,443 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 1,550,000 | 1,900,000 | ||||||
Shares Redeemed | (100,000 | ) | — | |||||
Net increase in shares of beneficial interest outstanding | 1,450,000 | 1,900,000 | ||||||
(a) | The Inspire Global Hope ETF commenced operations on February 27, 2017. |
* | Distributions from net investment income and net realized capital gains are combined for the year ended November 30, 2018. See “New Accounting Pronouncements” in the Notes to Financial Statements for more information. The distributions to shareholders for the period ended November 30, 2017 have not been reclassified to conform to the current year presentation. |
** | Net Assets - End of Period includes undistributed net investment income of $124,555 as of November 30, 2017. |
See accompanying notes to financial statements.
48
Inspire Small/Mid Cap Impact ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Year Ended | Period Ended | |||||||
November 30, 2018 | November 30, 2017 (a) | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 452,751 | $ | 184,834 | ||||
Net realized gain on investments and foreign currency transactions | 2,124,977 | 595,423 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations | (2,983,608 | ) | 1,514,842 | |||||
Net increase (decrease) in net assets resulting from operations | (405,880 | ) | 2,295,099 | |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
From net investment income | — | (104,210 | ) | |||||
Total distributions paid: * | (747,845 | ) | — | |||||
Net decrease in net assets resulting from distributions to shareholders | (747,845 | ) | (104,210 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 31,727,672 | 29,820,171 | ||||||
Cost of shares redeemed | (9,284,905 | ) | (2,511,874 | ) | ||||
Net increase in net assets resulting from shares of beneficial interest | 22,442,767 | 27,308,297 | ||||||
TOTAL INCREASE IN NET ASSETS | 21,289,042 | 29,499,186 | ||||||
NET ASSETS | ||||||||
Beginning of Period | 29,499,186 | — | ||||||
End of Period** | $ | 50,788,228 | $ | 29,499,186 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 1,150,000 | 1,200,000 | ||||||
Shares Redeemed | (350,000 | ) | (100,000 | ) | ||||
Net increase in shares of beneficial interest outstanding | 800,000 | 1,100,000 | ||||||
(a) | The Inspire Small/Mid Cap Impact ETF commenced operations on February 27, 2017. |
* | Distributions from net investment income and net realized capital gains are combined for the year ended November 30, 2018. See “New Accounting Pronouncements” in the Notes to Financial Statements for more information. The distributions to shareholders for the period ended November 30, 2017 have not been reclassified to conform to the current year presentation. |
** | Net Assets - End of Period includes undistributed net investment income of $75,989 as of November 30, 2017. |
See accompanying notes to financial statements.
49
Inspire Corporate Bond Impact ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Year Ended | Period Ended | |||||||
November 30, 2018 | November 30, 2017 (a) | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 904,032 | $ | 127,917 | ||||
Net realized gain (loss) on investments | (58,526 | ) | 156 | |||||
Net change in unrealized depreciation on investments | (1,046,294 | ) | (136,532 | ) | ||||
Net decrease in net assets resulting from operations | (200,788 | ) | (8,459 | ) | ||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
From net investment income | — | (110,430 | ) | |||||
Total distributions paid: * | (905,300 | ) | — | |||||
Net decrease in net assets resulting from distributions to shareholders | (905,300 | ) | (110,430 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 46,465,856 | 22,572,218 | ||||||
Cost of shares redeemed | (9,782,462 | ) | — | |||||
Net increase in net assets resulting from shares of beneficial interest | 36,683,394 | 22,572,218 | ||||||
TOTAL INCREASE IN NET ASSETS | 35,577,306 | 22,453,329 | ||||||
NET ASSETS | ||||||||
Beginning of Period | 22,453,329 | — | ||||||
End of Period** | $ | 58,030,635 | $ | 22,453,329 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 1,900,000 | 900,000 | ||||||
Shares Redeemed | (400,000 | ) | — | |||||
Net increase in shares of beneficial interest outstanding | 1,500,000 | 900,000 | ||||||
(a) | The Inspire Corporate Bond Impact ETF commenced operations on July 10, 2017. |
* | Distributions from net investment income and net realized capital gains are combined for the year ended November 30, 2018. See “New Accounting Pronouncements” in the Notes to Financial Statements for more information. The distributions to shareholders for the period ended November 30, 2017 have not been reclassified to conform to the current year presentation. |
** | Net Assets - End of Period includes undistributed net investment income of $17,487 as of November 30, 2017. |
See accompanying notes to financial statements.
50
Inspire 100 ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Year Ended | Period Ended | |||||||
November 30, 2018 | November 30, 2017 (a) | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 546,989 | $ | 11,397 | ||||
Net realized gain on investments | 74,631 | 4 | ||||||
Net change in unrealized appreciation (depreciation) on investments | (941,689 | ) | 131,472 | |||||
Net increase (decrease) in net assets resulting from operations | (320,069 | ) | 142,873 | |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
From return of capital | (21,298 | ) | — | |||||
Total distributions paid: * | (427,227 | ) | — | |||||
Net decrease in net assets resulting from distributions to shareholders | (448,525 | ) | — | |||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 34,755,898 | 6,280,535 | ||||||
Cost of shares redeemed | (1,326,126 | ) | — | |||||
Net increase in net assets resulting from shares of beneficial interest | 33,429,772 | 6,280,535 | ||||||
TOTAL INCREASE IN NET ASSETS | 32,661,178 | 6,423,408 | ||||||
NET ASSETS | ||||||||
Beginning of Period | 6,423,408 | — | ||||||
End of Period** | $ | 39,084,586 | $ | 6,423,408 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 1,300,000 | 250,000 | ||||||
Shares Redeemed | (50,000 | ) | — | |||||
Net increase in shares of beneficial interest outstanding | 1,250,000 | 250,000 | ||||||
(a) | The Inspire 100 ETF commenced operations on October 30, 2017. |
* | Distributions from net investment income and net realized capital gains are combined for the year ended November 30, 2018. See “New Accounting Pronouncements” in the Notes to Financial Statements for more information. |
** | Net Assets - End of Period includes undistributed net investment income of $11,397 as of November 30, 2017. |
See accompanying notes to financial statements.
51
Inspire Global Hope ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period |
Year Ended | Period Ended | |||||||
November 30, 2018 | November 30, 2017 (1) | |||||||
Net asset value, beginning of period | $ | 27.86 | $ | 25.00 | ||||
Activity from investment operations: | ||||||||
Net investment income (2) | 0.48 | 0.36 | ||||||
Net realized and unrealized gain (loss) on investments | (1.49 | ) | 2.78 | |||||
Total from investment operations | (1.01 | ) | 3.14 | |||||
Less distributions from: | ||||||||
Net investment income | (0.49 | ) | (0.28 | ) | ||||
Net realized gains | (0.16 | ) | — | |||||
Total distributions | (0.65 | ) | (0.28 | ) | ||||
Net asset value, end of period | $ | 26.20 | $ | 27.86 | ||||
Total return (4)(6) | (3.74 | )% | 12.63 | % | ||||
Net assets, at end of period (000s) | $ | 87,770 | $ | 52,929 | ||||
Ratio of gross expenses to average net assets (3) | 0.62 | % | 0.75 | % | ||||
Ratio of net expenses to average net assets (3) | 0.62 | % | 0.65 | % | ||||
Ratio of net investment income to average net assets (3) | 1.71 | % | 1.80 | % | ||||
Portfolio Turnover Rate (4)(5) | 22 | % | 15 | % | ||||
(1) | The Inspire Global Hope ETF commenced operations on February 27, 2017. |
(2) | Per share amounts calculated using the average shares method, which more appropriately presents the per share data for the period. |
(3) | Annualized for periods less than one year. |
(4) | Not annualized. |
(5) | Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
(6) | Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of the period. Distributions are assumed, for the purpose of this calculation, to be reinvested at the ex-dividend date net asset value per share on their respective payment dates. |
See accompanying notes to financial statements.
52
Inspire Small/Mid Cap Impact ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period |
Year Ended | Period Ended | |||||||
November 30, 2018 | November 30, 2017 (1) | |||||||
Net asset value, beginning of period | $ | 26.82 | $ | 25.00 | ||||
Activity from investment operations: | ||||||||
Net investment income (2) | 0.30 | 0.20 | ||||||
Net realized and unrealized gain on investments | 0.20 | (7) | 1.73 | |||||
Total from investment operations | 0.50 | 1.93 | ||||||
Less distributions from: | ||||||||
Net investment income | (0.21 | ) | (0.11 | ) | ||||
Net realized gains | (0.38 | ) | — | |||||
Total distributions | (0.59 | ) | (0.11 | ) | ||||
Net asset value, end of period | $ | 26.73 | $ | 26.82 | ||||
Total return (4)(6) | 1.89 | % | 7.75 | % | ||||
Net assets, at end of period (000s) | $ | 50,788 | $ | 29,499 | ||||
Ratio of gross expenses to average net assets (3) | 0.71 | % | 0.94 | % | ||||
Ratio of net expenses to average net assets (3) | 0.62 | % | 0.65 | % | ||||
Ratio of net investment income to average net assets (3) | 1.07 | % | 1.06 | % | ||||
Portfolio Turnover Rate (4)(5) | 24 | % | 16 | % | ||||
(1) | The Small/Mid Cap Impact ETF commenced operations on February 27, 2017. |
(2) | Per share amounts calculated using the average shares method, which more appropriately presents the per share data for the period. |
(3) | Annualized for periods less than one year. |
(4) | Not annualized. |
(5) | Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
(6) | Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of the period. Distributions are assumed, for the purpose of this calculation, to be reinvested at the ex-dividend date net asset value per share on their respective payment dates. |
(7) | The amount of net realized and unrealized gain on investments per share does not accord with the amounts in the Statements of Operations due to the timing of shareholder subscriptions and redemptions relative to fluctuating net asset values during the year. |
See accompanying notes to financial statements.
53
Inspire Corporate Bond Impact ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period |
Year Ended | Period Ended | |||||||
November 30, 2018 | November 30, 2017 (1) | |||||||
Net asset value, beginning of period | $ | 24.95 | $ | 25.00 | ||||
Activity from investment operations: | ||||||||
Net investment income (2) | 0.56 | 0.18 | ||||||
Net realized and unrealized loss on investments | (0.81 | ) | (0.09 | ) | ||||
Total from investment operations | (0.25 | ) | 0.09 | |||||
Less distributions from: | ||||||||
Net investment income | (0.52 | ) | (0.14 | ) | ||||
Net realized gains | (0.00 | ) (7) | — | |||||
Total distributions | (0.52 | ) | (0.14 | ) | ||||
Net asset value, end of period | $ | 24.18 | $ | 24.95 | ||||
Total return (4)(6) | (0.99 | )% | 0.37 | % | ||||
Net assets, at end of period (000s) | $ | 58,031 | $ | 22,453 | ||||
Ratio of gross expenses to average net assets (3) | 0.68 | % | 1.51 | % | ||||
Ratio of net expenses to average net assets (3) | 0.62 | % | 0.65 | % | ||||
Ratio of net investment income to average net assets (3) | 2.27 | % | 1.81 | % | ||||
Portfolio Turnover Rate (4)(5) | 5 | % | 6 | % | ||||
(1) | The Inspire Corporate Bond Impact ETF commenced operations on July 10, 2017. |
(2) | Per share amounts calculated using the average shares method, which more appropriately presents the per share data for the period. |
(3) | Annualized for periods less than one year. |
(4) | Not annualized. |
(5) | Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
(6) | Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of the period. Distributions are assumed, for the purpose of this calculation, to be reinvested at the ex-dividend date net asset value per share on their respective payment dates. |
(7) | Represents less than $0.005. |
See accompanying notes to financial statements.
54
Inspire 100 ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period |
Year Ended | Period Ended | |||||||
November 30, 2018 | November 30, 2017 (1) | |||||||
Net asset value, beginning of period | $ | 25.69 | $ | 25.00 | ||||
Activity from investment operations: | ||||||||
Net investment income (2) | 0.61 | 0.05 | ||||||
Net realized and unrealized gain on investments | 0.19 | (7) | 0.64 | |||||
Total from investment operations | 0.80 | 0.69 | ||||||
Less distributions from: | ||||||||
Net investment income | (0.42 | ) | — | |||||
Return of capital | (0.01 | ) | — | |||||
Total distributions | (0.43 | ) | — | |||||
Net asset value, end of period | $ | 26.06 | $ | 25.69 | ||||
Total return (4)(6) | 3.09 | % | 2.76 | % | ||||
Net assets, at end of period (000s) | $ | 39,085 | $ | 6,423 | ||||
Ratio of gross expenses to average net assets (3) | 0.84 | % | 3.78 | % | ||||
Ratio of net expenses to average net assets (3) | 0.35 | % | 0.35 | % | ||||
Ratio of net investment income to average net assets (3) | 2.27 | % | 2.41 | % | ||||
Portfolio Turnover Rate (4)(5) | 8 | % | 0 | % | ||||
(1) | The Inspire 100 ETF commenced operations on October 30, 2017. |
(2) | Per share amounts calculated using the average shares method, which more appropriately presents the per share data for the period. |
(3) | Annualized for periods less than one year. |
(4) | Not annualized. |
(5) | Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
(6) | Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of the period. Distributions are assumed, for the purpose of this calculation, to be reinvested at the ex-dividend date net asset value per share on their respective payment dates. |
(7) | The amount of net realized and unrealized gain on investments per share does not accord with the amounts in the Statements of Operations due to the timing of shareholder subscriptions and redemptions relative to fluctuating net asset values during the year. |
See accompanying notes to financial statements.
55
The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS |
November 30, 2018 |
1. | ORGANIZATION |
The Inspire Global Hope ETF (“BLES”), Inspire Small/Mid Cap Impact ETF (“ISMD”), Inspire Corporate Bond Impact ETF (“IBD”) and Inspire 100 ETF (“BIBL”) (each a “Fund” and collectively the “Funds”) are each diversified series of Northern Lights Fund Trust IV (the “Trust”), a statutory trust organized under the laws of the State of Delaware on June 2, 2015, which is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. BLES’s investment objective seeks to replicate investment results that generally correspond, before fees and expenses, to the performance of the Inspire Global Hope Large Cap Equal Weight Index. ISMD’s investment objective seeks to replicate investment results that generally correspond, before fees and expenses, to the performance of the Inspire Small/Mid Cap Impact Equal Weight Index. IBD’s investment objective seeks to replicate investment results that generally correspond, before fees and expenses, to the performance of the Inspire Corporate Bond Impact Equal Weight Index. BIBL’s investment objective seeks to replicate investment results that generally correspond, before fees and expenses, to the performance of the Inspire 100 Market Cap Weight Index. The investment objectives are non-fundamental. BLES and ISMD commenced operations on February 27, 2017. IBD commenced operations on July 10, 2017. BIBL commenced operations on October 30, 2017.
2. | SIGNIFICANT ACCOUNTING POLICIES |
The following is a summary of significant accounting policies followed by the Funds in preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements 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 income and expenses for the period. Actual results could differ from those estimates. The Funds are each investment companies and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 “Financial Services – Investment Companies” including FASB Accounting Standard Update “ASU” 2013-08.
Securities valuation – Securities listed on an exchange are valued at the last reported sale price at the close of the regular trading session of the primary exchange on the business day the value is being determined, or in the case of securities listed on NASDAQ at the NASDAQ Official Closing Price (“NOCP”). In the absence of a sale such securities shall be valued at the mean between the current bid and ask prices on the primary exchange on the day of valuation. Debt securities (other than short-term obligations) are valued each day by an independent pricing service approved by the Trust’s Board of Trustees (the “Board”) based on methods which include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type, indications as to values from dealers, and general market conditions or market quotations from a major market maker in the securities. Investments valued in currencies other than the U.S. dollar are converted to U.S. dollars using exchange rates obtained from pricing services. Short-term debt obligations having 60 days or less remaining until maturity, at time of purchase, may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value.
56
The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2018 |
Each Fund may hold securities, such as private investments, interests in commodity pools, other non-traded securities or temporarily illiquid securities, for which market quotations are not readily available or are determined to be unreliable. These securities will be valued using the “fair value” procedures approved by the Board. The Board has delegated execution of these procedures to a fair value committee composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) adviser or sub-adviser. The committee may also enlist third party consultants, such as a valuation specialist at a public accounting firm, valuation consultant or financial officer of a security issuer, on an as-needed basis to assist in determining a security-specific fair value. The Board reviews and ratifies the execution of this process and the resultant fair value prices at least quarterly to assure the process produces reliable results.
Fair Valuation Process –As noted above, the fair value committee is composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) the adviser or sub-adviser. The applicable investments are valued collectively via inputs from each of these groups. For example, fair value determinations are required for the following securities: (i) securities for which market quotations are insufficient or not readily available on a particular business day (including securities for which there is a short and temporary lapse in the provision of a price by the regular pricing source), (ii) securities for which, in the judgment of the adviser, the prices or values available do not represent the fair value of the instrument. Factors which may cause an adviser to make such a judgment include, but are not limited to, the following: only a bid price or an ask price is available, the spread between bid and ask prices is substantial, the frequency of sales, the thinness of the market, the size of reported trades, and actions of the securities markets, such as the suspension or limitation of trading; (iii) securities determined to be illiquid; (iv) securities with respect to which an event that will affect the value thereof has occurred (a “significant event”) since the closing prices were established on the principal exchange on which they are traded, but prior to the Funds’ calculation of its net asset value. Specifically, interests in commodity pools or managed futures pools are valued on a daily basis by reference to the closing market prices of each futures contract or other asset held by a pool, as adjusted for pool expenses. Restricted or illiquid securities, such as private investments or non-traded securities, are valued via inputs from the adviser based upon the current bid for the security from two or more independent dealers or other parties reasonably familiar with the facts and circumstances of the security (who should take into consideration all relevant factors as may be appropriate under the circumstances). If the adviser is unable to obtain a current bid from such independent dealers or other independent parties, the fair value committee shall determine the fair value of such security using the following factors: (i) the type of security; (ii) the cost at date of purchase; (iii) the size and nature of the Funds’ holdings; (iv) the discount from market value of unrestricted securities of the same class at the time of purchase and subsequent thereto; (v) information as to any transactions or offers with respect to the security; (vi) the nature and duration of restrictions on disposition of the security and the existence of any registration rights; (vii) how the yield of the security compares to similar securities of companies of similar or equal creditworthiness; (viii) the level of recent trades of similar or comparable securities; (ix) the liquidity characteristics of the security; (x) current market conditions; and (xi) the market value of any securities into which the security is convertible or exchangeable.
Time Deposits -Time deposits are issued by a depository institution in exchange for the deposit of funds. The issuer agrees to pay the amount deposited plus interest to the depositor on the date specified
57
The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2018 |
with respect to the deposit. Time deposits do not trade in the secondary market prior to maturity. However, some time deposits may be redeemable prior to maturity and may be subject to withdrawal penalties.
The Funds utilize various methods to measure the fair value of all of their investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:
Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Funds have the ability to access.
Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in 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 value requires more judgment. Accordingly, the degree of judgment exercised in determining value is greatest for instruments categorized in Level 3.
The inputs used to measure 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.
58
The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2018 |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize the inputs used as of November 30, 2018 for the Funds’ assets measured at value:
Inspire Global Hope ETF | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 86,223,080 | $ | — | $ | — | $ | 86,223,080 | ||||||||
Preferred Stock | 390,685 | — | — | 390,685 | ||||||||||||
Total | $ | 86,613,765 | $ | — | $ | — | $ | 86,613,765 | ||||||||
Inspire Small/Mid Cap Impact ETF | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 49,685,677 | $ | — | $ | — | $ | 49,685,677 | ||||||||
Total | $ | 49,685,677 | $ | — | $ | — | $ | 49,685,677 | ||||||||
Inspire Corporate Bond Impact ETF | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Corporate Bonds | $ | — | $ | 57,175,555 | $ | — | $ | 57,175,555 | ||||||||
Total | $ | — | $ | 57,175,555 | $ | — | $ | 57,175,555 | ||||||||
Inspire 100 ETF | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 38,786,818 | $ | — | $ | — | $ | 38,786,818 | ||||||||
Total | $ | 38,786,818 | $ | — | $ | — | $ | 38,786,818 |
There were no transfers into or out of Level 1 and Level 2 during the period. It is the Funds’ policy to record transfers into or out of Level 1 and Level 2 at the end of the reporting period.
The Funds did not hold any Level 3 securities during the period.
* | See Portfolio of Investments for industry classification. |
Security transactions and related income – Security transactions are accounted for on the trade date. Interest income is recognized on an accrual basis. Dividend income is recorded on the ex-dividend date. Realized gains or losses from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.
Dividends and distributions to shareholders –Dividends from net investment income, if any, are declared and paid quarterly for BLES, ISMD and BIBL and monthly for IBD. Distributable net realized capital gains, if any, are declared and distributed annually. Dividends from net investment income and distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either temporary (e.g.,
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2018 |
deferred losses) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. Dividends and distributions to shareholders are recorded on ex-dividend date.
Federal Income Taxes – The Funds intend to continue to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of their taxable income to their shareholders. Therefore, no provision for federal income tax is required. The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has reviewed the Funds’ tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax year ended November 30, 2017, or expected to be taken in the Funds’ November 30, 2018 year-end tax returns.
The Funds identify their major tax jurisdictions as U.S. federal and foreign jurisdictions where the Funds make significant investments. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
Expenses – Expenses of the Trust that are directly identifiable to a specific Fund are charged to that Fund. Expenses, which are not readily identifiable to a specific Fund, are allocated in such a manner as deemed equitable (as determined by the Board), taking into consideration the nature and type of expense and the relative sizes of the Funds in the Trust.
Foreign Currency –The accounting records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency, and income receipts and expense payments are translated into U.S. dollars using the prevailing exchange rate at the London market close. Purchases and sales of securities are translated into U.S. dollars at the contractual currency rates established at the approximate time of the trade. Net realized gains and losses on foreign currency transactions represent net gains and losses from currency realized between the trade and settlement dates on securities transactions, gains and losses on the purchase and sale of foreign currencies and the difference between income accrued versus income received. The effects of changes in foreign currency exchange rates on investments in securities are included with the net realized and unrealized gain or loss on investment securities.
Indemnification –The Trust indemnifies its officers and Trustees for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnities. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the risk of loss due to these warranties and indemnities appears to be remote.
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2018 |
3. | INVESTMENT TRANSACTIONS |
For the year ended November 30, 2018, cost of purchases and proceeds from sales of portfolio securities (excluding in-kind transactions and short-term investments) for the Funds were as follows:
Purchases | Sales | |||||||
Inspire Global Hope ETF | $ | 19,173,598 | $ | 15,730,237 | ||||
Inspire Small/Mid Cap Impact ETF | $ | 10,738,515 | $ | 9,962,996 | ||||
Inspire Corporate Bond Impact ETF | $ | 9,222,088 | $ | 1,804,276 | ||||
Inspire 100 ETF | $ | 2,244,860 | $ | 1,940,312 | ||||
For the year ended November 30, 2018, cost of purchases and proceeds from sales of portfolio securities for in-kind transactions for the Funds were as follows:
Purchases | Sales | |||||||
Inspire Global Hope ETF | $ | 40,212,415 | $ | 2,707,969 | ||||
Inspire Small/Mid Cap Impact ETF | $ | 31,443,034 | $ | 9,181,969 | ||||
Inspire Corporate Bond Impact ETF | $ | 42,099,299 | $ | 9,279,883 | ||||
Inspire 100 ETF | $ | 34,333,879 | $ | 1,309,585 |
4. | INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PARTIES |
The business activities of the Funds are overseen by the Board. CWM Advisors, LLC (the “Adviser”) serves as the Fund’s Investment Adviser pursuant to an Investment Advisory Agreement with the Trust (the “Advisory Agreement”). The Trust has entered into a Global Custody Agreement with Brown Brothers Harriman & Co. (the “Custodian”) to serve as custodian and to act as transfer and shareholder services agent. The Trust has also entered into an Underwriting Agreement with Northern Lights Distributors, LLC (the “Distributor”) to serve as the principal underwriter and distributor for the Trust.
Pursuant to the Advisory Agreement, the Adviser, under the oversight of the Board, directs the daily operations of the Funds and supervises the performance of administrative and professional services provided by others. As compensation for its services and the related expenses borne by the Adviser, the Funds pay the Adviser a fee, computed and accrued daily and paid monthly, at an annual rate of 0.30% of each Fund’s average daily net assets. For the fiscal year ended November 30, 2018, the Adviser earned $223,071, $127,077, $119,019 and $71,898 in advisory fees for BLES, ISMD, IBD and BIBL, respectively.
Pursuant to a written contract (the “Waiver Agreement”), the Adviser has agreed for BLES, ISMD, IBD and BIBL, at least until March 31, 2019, to waive a portion of its advisory fee and has agreed to reimburse the Funds for other expenses to the extent necessary so that total expenses incurred (exclusive of any front-end or contingent deferred loads, taxes, brokerage fees and commissions, borrowing costs (such as interest and dividend expense on securities sold short), acquired fund fees and expenses, fees and expenses associated with investments in other collective investment vehicles or derivative instruments
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2018 |
(including for example option and swap fees and expenses), or extraordinary expenses such as litigation) will not exceed 0.61% of average daily net assets for BLES, ISMD and IBD, effective April 1, 2018, and 0.35% of average daily net assets for BIBL, respectively, herein referred to as the “Expense Limitation.” Prior to April 1, 2018, the fees would not exceed 0.65% of average daily net assets for BLES, ISMD and IBD.
If the Adviser waives any fee or reimburses any expenses pursuant to the Waiver Agreement, and a Fund’s operating expenses are subsequently lower than its Expense Limitation, or limitation in place at time of wavier, the Adviser, on a rolling three year period, shall be entitled to reimbursement by the Fund provided that such reimbursement does not cause that Fund’s operating expense to exceed the Expense Limitation. If a Fund’s operating expenses subsequently exceed the Expense Limitation, the reimbursements for the Fund shall be suspended. For the year ended November 30, 2018, the Adviser waived fees and/or reimbursed expenses in the amount of $39,292 for ISMD, $22,330 for IBD, and $117,184 for BIBL pursuant to the Waiver Agreement. For the year ended November 30, 2018, the Adviser recaptured $967 of previously waived fees for BLES.
The following amounts previously waived by the Adviser are subject to recapture by the Funds by the following dates:
11/30/2020 | 11/30/2021 | |||||||
BLES | $ | 29,470 | $ | — | ||||
ISMD | $ | 51,103 | $ | 39,292 | ||||
IBD | $ | 60,773 | $ | 22,330 | ||||
BIBL | $ | 16,256 | $ | 117,184 |
The Adviser may seek reimbursement only for expenses waived or paid by it during the three years prior to such reimbursement; provided, however, that such expenses may only be reimbursed to the extent they were waived or paid after the effective date of the Waiver Agreement (or any similar agreement). The Board may terminate this expense reimbursement arrangement at any time.
The Trust, with respect to the Funds, has adopted a distribution and service plan (“Plan”) pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, the Funds are authorized to pay distribution fees to the distributor and other firms that provide distribution and shareholder services (“Service Providers”). If a Service Provider provides these services, the Funds may pay fees at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 under the 1940 Act.
No distribution or service fees are currently paid by the Funds and there are no current plans to impose these fees. In the event Rule 12b-1 fees were charged, over time they would increase the cost of an investment in the Funds.
Gemini Fund Services, LLC (“GFS”) – GFS, provides administration and fund accounting services to the Trust. Pursuant to separate servicing agreements with GFS, the Funds pay GFS customary fees for providing administration and fund accounting services to the Funds. Certain officers of the Trust are also officers of GFS, and are not paid any fees directly by the Funds for serving in such capacities.
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2018 |
Northern Lights Compliance Services, LLC (“NLCS”) – NLCS, an affiliate of GFS and the Distributor, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives customary fees from each Fund.
Blu Giant, LLC (“Blu Giant”) – Blu Giant, an affiliate of GFS, provides EDGAR conversion and filing services as well as print management services for the Funds on an ad-hoc basis. For the provision of these services, Blu Giant receives customary fees from the Funds.
5. | CAPITAL SHARE TRANSACTIONS |
Shares are not individually redeemable and may be redeemed by the Funds at the net asset value (“NAV”) only in large blocks known as “Creation Units.” Shares are created and redeemed by the Funds only in Creation Unit size aggregations of 50,000 shares for BLES, ISMD, BIBL and 100,000 shares for IBD. Only Authorized Participants or transactions done through an Authorized Participant are permitted to purchase or redeem Creation Units from the Funds. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a DTC participant and, in each case, must have executed a Participant Agreement with the Distributor. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the NAV per share of the Funds on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances. In addition, the Funds may impose transaction fees on purchases and redemptions of Funds’ shares to cover the custodial and other costs incurred by the Funds in effecting trades. A fixed fee may be imposed on each creation and redemption transaction regardless of the number of Creation Units involved in the transaction (“Fixed Fee”). Purchases and redemptions of Creation Units for cash or involving cash-in-lieu are required to pay an additional variable charge to compensate the Funds and its ongoing shareholders for brokerage and market impact expenses relating to Creation Unit transactions (“Variable Charge,” and together with the Fixed Fee, the “Transaction Fees”). Transactions in capital shares for the Funds are disclosed in the Statements of Changes in Net Assets.
The Transaction Fees for the Funds’ are listed in the table below:
Fee for In-Kind and Cash | Maximum Additional Variable | |||||||
ETFs | Purchases | Charge for Cash Purchases* | ||||||
Inspire Global Hope ETF | $5,000 | 2.00%* | ||||||
Inspire Small/Mid Cap Impact ETF | $2,500 | 2.00%* | ||||||
Inspire Corporate Bond Impact ETF | $750 | 2.00%* | ||||||
Inspire 100 ETF | $750 | 2.00%* |
* | The maximum Transaction Fee may be up to 2.00% of the amount invested. |
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2018 |
6. | DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL |
The tax character of Fund distributions paid for the year ended November 30, 2018 and the period ended November 30, 2017 was as follows:
For the year ended November 30, 2018: | ||||||||||||||||
Ordinary | Long-Term | Return | ||||||||||||||
Portfolio | Income | Capital Gains | Of Capital | Total | ||||||||||||
Inspire Global Hope ETF | $ | 1,595,990 | $ | 7,220 | $ | — | $ | 1,603,210 | ||||||||
Inspire Small/Mid Cap Impact ETF | 742,015 | 5,830 | — | 747,845 | ||||||||||||
Inspire Corporate Bond Impact ETF | 905,300 | — | — | 905,300 | ||||||||||||
Inspire 100 ETF | 422,936 | 4,291 | 21,298 | 448,525 | ||||||||||||
For each of the periods ended November 30, 2017: | ||||||||||||||||
Ordinary | Long-Term | Return | ||||||||||||||
Portfolio | Income | Capital Gains | Of Capital | Total | ||||||||||||
Inspire Global Hope ETF | $ | 433,285 | $ | — | $ | — | $ | 433,285 | ||||||||
Inspire Small/Mid Cap Impact ETF | 104,210 | — | — | 104,210 | ||||||||||||
Inspire Corporate Bond Impact ETF | 110,430 | — | — | 110,430 | ||||||||||||
Inspire 100 ETF | — | — | — | — |
As of November 30, 2018, the components of accumulated earnings/ (deficit) on a tax basis were as follows:
Undistributed | Undistributed | Post October Loss | Capital Loss | Other | Unrealized | Total | ||||||||||||||||||||||
Ordinary | Long-Term | and | Carry | Book/Tax | Appreciation/ | Accumulated | ||||||||||||||||||||||
Portfolio | Income | Capital Gains | Late Year Loss | Forwards | Differences | (Depreciation) | Earnings/(Deficits) | |||||||||||||||||||||
Inspire Global Hope ETF | $ | 337,188 | $ | 282,327 | $ | — | $ | — | $ | — | $ | (2,625,789 | ) | $ | (2,006,274 | ) | ||||||||||||
Inspire Small/Mid Cap Impact ETF | 824,516 | 286,858 | — | — | — | (1,775,802 | ) | (664,428 | ) | |||||||||||||||||||
Inspire Corporate Bond Impact ETF | 16,375 | — | (39,987 | ) | (4,192 | ) | — | (1,182,826 | ) | (1,210,630 | ) | |||||||||||||||||
Inspire 100 ETF | — | — | (1,729 | ) | — | — | (726,235 | ) | (727,964 | ) |
The difference between book basis and tax basis undistributed net investment income/(loss), accumulated net realized gain/(loss), and unrealized appreciation/(depreciation) from investments is primarily attributable to the tax deferral of losses on wash sales, real estate investment trusts, passive foreign investment companies, adjustments for partnerships, and C-Corporation return of capital distributions.
Capital losses incurred after October 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The following Funds incurred and elected to defer such capital losses for the year ended November 30, 2018 as follows:
Post October | ||||
Portfolio | Losses | |||
Inspire Corporate Bond Impact ETF | 39,987 | |||
Inspire 100 ETF | 1,729 |
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2018 |
At November 30, 2018, the Funds had capital loss carry forwards for federal income tax purposes available to offset future capital gains as follows:
Non-Expiring | ||||||||||||
Portfolio | Short-Term | Long-Term | Total | |||||||||
Inspire Corporate Bond Impact ETF | 2,720 | 1,472 | 4,192 |
Permanent book and tax differences, primarily attributable to realized gain (loss) on in-kind redemptions and adjustments for distribution reclasses, resulted in reclassifications for the Funds for the year ended November 30, 2018 as follows:
Paid | ||||||||
In | Accumulated | |||||||
Portfolio | Capital | Earnings (Losses) | ||||||
Inspire Global Hope ETF | $ | 506,923 | $ | (506,923 | ) | |||
Inspire Small/Mid Cap Impact ETF | 1,492,176 | (1,492,176 | ) | |||||
Inspire Corporate Bond Impact ETF | (14,347 | ) | 14,347 | |||||
Inspire 100 ETF | 123,541 | (123,541 | ) |
7. | AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION – TAX BASIS |
Gross | Gross | Net Unrealized | ||||||||||||||
Unrealized | Unrealized | Appreciation/ | ||||||||||||||
Tax Cost | Appreciation | Depreciation | (Depreciation) | |||||||||||||
Inspire Global Hope ETF | $ | 89,235,978 | $ | 5,673,606 | $ | (8,295,819 | ) | $ | (2,622,213 | ) | ||||||
Inspire Small/Mid Cap Impact ETF | 51,461,479 | 4,184,262 | (5,960,064 | ) | (1,775,802 | ) | ||||||||||
Inspire Corporate Bond Impact ETF | 58,358,381 | 5,674 | (1,188,500 | ) | (1,182,826 | ) | ||||||||||
Inspire 100 ETF | 39,513,053 | 2,253,774 | (2,980,009 | ) | (726,235 | ) |
8. | RECENT ACCOUNTING PRONOUNCEMENTS AND REPORTING UPDATES |
In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments in the ASU shorten the amortization period for certain callable debt securities, held at a premium, to be amortized to the earliest call date. The ASU does not require an accounting change for securities held at a discount; which continues to be amortized to maturity. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Management is currently evaluating the impact, if any, of applying this provision.
In August 2018, the FASB issued ASU No. 2018-13, which changes certain fair value measurement disclosure requirements. The new ASU, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the policy for the timing of transfers between levels. For investment companies, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is allowed. At this time, management is evaluating the implications of this ASU and any impact on the financial statement disclosures.
In August 2018, the Securities and Exchange Commission adopted amendments to certain disclosure requirements under Regulation S-X to conform to US GAAP, including: (i) an amendment to require presentation of the total, rather than the components, of distributable earnings on the Statements of
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2018 |
Assets and Liabilities; and (ii) an amendment to require presentation of the total, rather than the components, of distributions to shareholders, except for tax return of capital distributions, if any, on the Statements of Changes in Net Assets. The amendments also removed the requirement for parenthetical disclosure of undistributed net investment income on the Statements of Changes in Net Assets. These amendments have been incorporated with these financial statements.
9. | SUBSEQUENT EVENTS |
Subsequent events after the date of the Statements of Assets and Liabilities have been evaluated through the date the financial statements were issued.
Management has determined that no events or transactions occurred requiring adjustment or disclosure in the financial statements, other than the following:
The Board of Trustees declared the following distributions after November 30, 2018:
Dividend Per Share | Short Term Capital Gain | Long Term Capital Gain | Record Date | Payable Date | ||||||
Inspire Global Hope ETF | $0.0555 | $0.0894 | $0.0708 | 12/17/2018 | 12/24/2018 | |||||
Inspire Small/Mid Cap Impact ETF | $0.0272 | $0.4236 | $0.1370 | 12/17/2018 | 12/24/2018 | |||||
Inspire Corporate Bond Impact ETF | $0.0644 | $ — | $ — | 12/17/2018 | 12/24/2018 | |||||
Inspire 100 ETF | $0.0216 | $0.0083 | $0.0029 | 12/17/2018 | 12/24/2018 |
66
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of Northern Lights Fund Trust IV
and the Shareholders of Inspire Global Hope ETF, Inspire Small/Mid Cap Impact ETF,
Inspire Corporate Bond Impact ETF, and Inspire 100 ETF
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of Inspire Global Hope ETF, Inspire Small/Mid Cap Impact ETF, Inspire Corporate Bond Impact ETF, and Inspire 100 ETF, each a series of shares of beneficial interest in Northern Lights Fund Trust IV (the“Funds”), including the portfolios of investments, as of November 30, 2018, and the related statements of operations for the year then ended, and the statements of changes in net assets and the financial highlights for each respective period then ended as noted in the table below, and the related notes (collectively referred to as the“financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of November 30, 2018, and the results of their operations, the changes in their net assets and their financial highlights for each respective period then ended as noted in the table below, in conformity with accounting principles generally accepted in the United States of America.
Inspire Global Hope ETF | For the year ended November 30, 2018 and the period February 27, 2017 (commencement of operations) to November 30, 2017 |
Inspire Small/Mid Cap Impact ETF | For the year ended November 30, 2018 and the period February 27, 2017 (commencement of operations) to November 30, 2017 |
Inspire Corporate Bond Impact ETF | For the year ended November 30, 2018 and the period July 10, 2017 (commencement of operations) to November 30, 2017 |
Inspire 100 ETF | For the year ended November 30, 2018 and the period October 30, 2017 (commencement of operations) to November 30, 2017 |
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities law and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
67
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risk of material misstatement of those financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of November 30, 2018 by correspondence with the custodian and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
BBD, LLP
We have served as the auditor of one or more of the Funds in the Northern Lights Fund Trust IV since 2015.
Philadelphia, Pennsylvania
January 28, 2019
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The Inspire ETFs |
EXPENSE EXAMPLES (Unaudited) |
November 30, 2018 |
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; (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 Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from June 1, 2018 through November 30, 2018.
Actual Expenses
The “Actual” expenses lines in the table below provide information about actual account values and actual expenses. You may use the information below, 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 table 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 “Hypothetical” lines in the table below provide information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of 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 table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending | Expenses Paid | Expenses Paid | |||||
Account Value | Account Value | During Period* | During Period** | |||||
Actual | 6/1/2018 | 11/30/2018 | 6/1/18 - 11/30/18 | 6/1/18 - 11/30/18 | ||||
Inspire Global Hope ETF | $1,000.00 | $943.70 | $2.97 | 0.61% | ||||
Inspire Small/Mid Cap Impact ETF | $1,000.00 | $954.30 | $2.99 | 0.61% | ||||
Inspire Corporate Bond Impact ETF | $1,000.00 | $1,001.30 | $3.06 | 0.61% | ||||
Inspire 100 ETF | $1,000.00 | $989.40 | $1.75 | 0.35% | ||||
Hypothetical | ||||||||
(5% return before expenses) | ||||||||
Inspire Global Hope ETF | $1,000.00 | $1,022.02 | $3.09 | 0.61% | ||||
Inspire Small/Mid Cap Impact ETF | $1,000.00 | $1,022.01 | $3.09 | 0.61% | ||||
Inspire Corporate Bond Impact ETF | $1,000.00 | $1,022.01 | $3.09 | 0.61% | ||||
Inspire 100 ETF | $1,000.00 | $1,023.31 | $1.78 | 0.35% |
* | Expenses are equal to the average account value over the period, multiplied by the Fund’s annualized expense ratio net of waived/reimbursed fees, multiplied by the number of days in the period (183) divided by the number of days in the fiscal year (365). |
“Hypothetical” expense information is presented on the basis of the full one-half year period to enable a comparison to other funds. It is based on assuming the same net expense ratio and average account value over the period, but is multiplied by 183/365 (to reflect the full half-year period).
** | Annualized. |
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The Inspire ETFs |
SUPPLEMENTAL INFORMATION (Unaudited) |
November 30, 2018 |
The following is a list of the Trustees and executive officers of the Trust and each person’s principal occupation over the last five years. Unless otherwise noted, the address of each Trustee and Officer is 17605 Wright Street, Suite 2, Omaha, Nebraska 68130.
Independent Trustees
Name, Address and Year of Birth | Position/Term of Office* | Principal Occupation During the Past Five Years | Number of Funds in Fund Complex** Overseen by Trustee | Other Directorships held by Trustee During the Past Five Years |
Joseph Breslin Year of Birth: 1953 | Independent Trustee and Chairman of the Board since 2015 | President and Consultant, Adviser Counsel, Inc. (formerly J.E. Breslin & Co.) (management consulting firm to investment advisers), (since 2009); Senior Counsel, White Oak Global Advisors, LLC. (since 2018). | 4 | Northern Lights Fund Trust IV (for series not affiliated with the Fund since 2015); Director, Kinetics Mutual Funds, Inc. (since 2000); Trustee, Kinetics Portfolios Trust (since 2000); Trustee, Forethought Variable Insurance Trust (since 2013); Trustee, BlueArc Multi-Strategy Fund (2014-2017); Hatteras Trust (2004-2016) |
Thomas Sarkany Year of Birth: 1946 | Independent Trustee since 2015 | Founder and President, TTS Consultants, LLC (financial services) (since 2010). | 4 | Northern Lights Fund Trust IV (for series not affiliated with the Fund since 2015); Arrow Investments Trust (since 2014), Arrow ETF Trust (since 2012), Trustee, Northern Lights Fund Trust II (since 2011); Director, Aquila Distributors (since 1981) |
Charles Ranson Year of Birth: 1947 | Independent Trustee since 2015 | Principal, Ranson & Associates (strategic analysis and planning, including risk assessment and capital formation for entrepreneurial ventures) (since 2003); GR Group (since 2008). | 4 | Northern Lights Fund Trust IV (for series not affiliated with the Fund since 2015); Advisors Preferred Trust (since November 2012) |
11/30/18 – NLFT IV_v3
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The Inspire ETFs |
SUPPLEMENTAL INFORMATION (Unaudited)(Continued) |
November 30, 2018 |
Officers
Name, Address and Year of Birth | Position/Term of Office* | Principal Occupation During the Past Five Years | Number of Funds in Fund Complex** Overseen by Trustee | Other Directorships held by Trustee During the Past Five Years |
Wendy Wang 80 Arkay Drive Hauppauge, NY 11788 Born in 1970 | President since 2015 | Senior Vice President, Director of Tax and Compliance Administration, Gemini Fund Services, LLC (since 2012). | N/A | N/A |
Sam Singh 80 Arkay Drive Hauppauge, NY 11788 Born in 1976 | Treasurer since 2015 | Vice President, Gemini Fund Services, LLC (since 2015); Assistant Vice President, Gemini Fund Services, LLC (2011-2014). | N/A | N/A |
Jennifer Farrell 80 Arkay Drive Hauppauge, NY 11788 Born in 1969 | Secretary since 2017 | Manager, Legal Administration, Gemini Fund Services, LLC (since 2018); Senior Paralegal, Gemini Fund Services, LLC (since 2015); Legal Trainer, Gemini Fund Services, LLC (2013-2015); Senior Paralegal, Gemini Fund Services, LLC (2006-2012). | N/A | N/A |
Michael Quain Born in 1957 | Chief Compliance Officer since 2015 | Consultant, Northern Lights Compliance Services, LLC (since 2015); Quain Compliance Consulting, LLC (since 2014); Artio Global Management, LLC (formerly Julius Baer), First Vice President & Chief Compliance Officer (2004-2013). | N/A | N/A |
* | The term of office for each Trustee and officer listed above will continue indefinitely until the individual resigns or is removed. |
** | As of November 30, 2018, the Trust was comprised of 21 active portfolios managed by unaffiliated investment advisers. The term “Fund Complex” applies only to the Fund and the four Funds managed by the same investment adviser. The Funds do not hold themselves out as related to any other series within the Trust for investment purposes, nor do they share the same investment adviser with any other series. |
The Fund’s SAI includes additional information about the Trustees and is available free of charge, upon request, by calling toll-free at 1-877-658-9473.
11/30/18 – NLFT IV_v3
71
PRIVACY NOTICE
Northern Lights Fund Trust IV
Rev. August 2015
FACTS | WHAT DOES NORTHERN LIGHTS FUND TRUST IV 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 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 depends on the product or service that you have with us. This information can include:
● Social Security number and wire transfer instructions
● account transactions and transaction history
● investment experience and purchase history
When you areno longerour 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 Northern Lights Fund Trust IV chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information: | Does Northern Lights Fund Trust IV share information? | Can you limit this sharing? |
For our everyday business purposes -such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus. | YES | NO |
For our marketing purposes -to offer our products and services to you. | NO | We don’t share |
For joint marketing with other financial companies. | NO | We don’t share |
For our affiliates’ everyday business purposes -information about your transactions and records. | NO | We don’t share |
For our affiliates’ everyday business purposes -information about your credit worthiness. | NO | We don’t share |
For nonaffiliates to market to you | NO | We don’t share |
QUESTIONS? | Call 1-402-493-4603 |
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PRIVACY NOTICE
Northern Lights Fund Trust IV
Page 2 |
What we do: | |
How does Northern Lights Fund Trust IV protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information. |
How does Northern Lights Fund Trust IV collect my personal information? | We collect your personal information, for example, when you ● open an account or deposit money
● direct us to buy securities or direct us to sell your securities
● seek advice about your investments
We also collect your personal 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.
● Northern Lights Fund Trust IV has no affiliates. |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
● Northern Lights Fund Trust IV does not 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.
● Northern Lights Fund Trust IV does not jointly market. |
73
PROXY VOTING POLICY
Information regarding how the Funds voted proxies relating to portfolio securities for the most recent twelve-month period ended June 30 as well as a description of the policies and procedures that the Funds use to determine how to vote proxies is available without charge, upon request, by calling 1-877-658-9473 or by referring to the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.
PORTFOLIO HOLDINGS
The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC (1-800-SEC-0330). The information on Form N-Q is available without charge, upon request, by calling 1-877-658-9473.
PREMIUM/DISCOUNT INFORMATION
Information regarding how often the Shares of each Fund traded on the exchange at a price above (i.e. at a premium) or below (i.e. at a discount) the NAV of the Fund during the past calendar year can be found at www.inspireinvesting.com.
INVESTMENT ADVISOR |
Inspire (CWM Advisors, LLC) |
650 San Benito Street |
Suite 130 |
Hollister, CA 95023 |
ADMINISTRATOR |
Gemini Fund Services, LLC |
80 Arkay Drive, Suite 110 |
Hauppauge, NY 11788 |
Item 2. Code of Ethics.
(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.
(b) For purposes of this item, “code of ethics” means written standards that are reasonably designed to deter wrongdoing and to promote:
(1) | Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; |
(2) | Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Commission and in other public communications made by the registrant; |
(3) Compliance with applicable governmental laws, rules, and regulations;
(4) | The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code; and |
(5) Accountability for adherence to the code.
(c) Amendments: During the period covered by the report, there have not been any amendments to the provisions of the code of ethics.
(d) Waivers: During the period covered by the report, the registrant has not granted any express or implicit waivers from the provisions of the code of ethics.
(e) The Code of Ethics is not posted on Registrant’ website.
(f) A copy of the Code of Ethics is attached as an exhibit.
Item 3. Audit Committee Financial Expert.
(a) The Registrant’s board of trustees has determined that Ira Rothblut is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Rothblut is independent for purposes of this Item 3.
Item 4. Principal Accountant Fees and Services.
(a) | Audit Fees |
2018 – $50,800
2017 – $50,800
(b) | Audit-Related Fees |
2018 – None
2017 – None
(c) | Tax Fees |
2018 – $8,800
2017 – $8,800
Preparation of Federal & State income tax returns, assistance with calculation of required income, capital gain and excise distributions and preparation of Federal excise tax returns.
(d) | All Other Fees |
2018 - None
2017 - None
(e) | (1)Audit Committee’s Pre-Approval Policies |
The registrant’s Audit Committee is required to pre-approve all audit services and, when appropriate, any non-audit services (including audit-related, tax and all other services) to the registrant. The registrant’s Audit Committee also is required to pre-approve, when appropriate, any non-audit services (including audit-related, tax and all other services) to its adviser, or any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant, to the extent that the services may be determined to have an impact on the operations or financial reporting of the registrant. Services are reviewed on an engagement by engagement basis by the Audit Committee.
(2) | Percentages of Services Approved by the Audit Committee |
2018 | 2017 | |
Audit-Related Fees: | 0.00% | 0.00% |
Tax Fees: | 0.00% | 0.00% |
All Other Fees: | 0.00% | 0.00% |
(f) | During the audit of registrant's financial statements for the most recent fiscal year, less than 50 percent of the hours expended on the principal accountant's engagement were attributed to work performed by persons other than the principal accountant's full-time, permanent employees. |
(g) | The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant: |
2018 - $8,800
(h) The registrant's audit committee has considered whether the provision of non-audit services to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant's independence.
Item 5. Audit Committee of Listed Companies.Not applicable to open-end investment companies.
Item 6. Schedule of Investments.Schedule of investments in securities of unaffiliated issuers is included under Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds. 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 Funds. Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders. None
Item 11. Controls and Procedures.
(a) Based on an evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of filing date of this Form N-CSR, the principal executive officer and principal financial officer of the Registrant have concluded that the disclosure controls and procedures of the Registrant are reasonably designed to ensure that the information required in filings on Form N-CSR is recorded, processed, summarized, and reported by the filing date, including that information required to be disclosed is accumulated and communicated to the Registrant’s management, including the Registrant’s principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no significant changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.Not applicable to open-end investment companies.
Item 13. Exhibits.
(a)(1) Not applicable.
(a)(2) Certifications required by Section 302 of the Sarbanes-Oxley Act of 2002 (and Item 11(a)(2) of Form N-CSR) are filed herewith.
(a)(3) Not applicable for open-end investment companies.
(b) Certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 (and Item 11(b) of Form N-CSR) are filed 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)Northern Lights Fund Trust IV
By (Signature and Title)
/s/ Wendy Wang
Wendy Wang, Principal Executive Officer/President
Date 2/7/19
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/ Wendy Wang
Wendy Wang, Principal Executive Officer/President
Date 2/7/19
By (Signature and Title)
/s/ Sam Singh
Sam Singh, Principal Financial Officer/Treasurer
Date 2/7/19