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)
225 Pictoria Drive , Suite 450,Cincinnati, Ohio 45246
(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:11/30/19
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) |
Inspire International ESG ETF (WWJD) |
Annual Report |
November 30, 2019 |
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 Funds’ 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 Funds’ websitewww.inspireeft.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 Funds 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.
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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, 2019.
The past year has gone by so fast and now as 2020 is just around the corner, we are exceedingly grateful to look back at the blessings and miracles that God has given to us in 2019. In the words of Paul “I have not stopped giving thanks for you (our shareholders), remembering you in my prayers”, Ephesians 1:16, for 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
Even with the dramatic decline of the stock market in December 2018, BLES had a positive, double digit return over the past twelve months ending 11-30-2019. BLES has a target weight of 50% US Large Cap stocks, 40% International Developed Markets stocks and 10% Emerging Markets stocks. The US exposure was responsible for most of the positive returns for much of the year, but the International and Emerging Markets started to outperform over the past two months. For the twelve months ending 11-30-2019 BLES was up 14.65% on a market price basis and 14.60% on the NAV. Since inception (2-27-2017) BLES has an annualized return of 8.66% on a market price basis and 8.19% on the NAV.
ISMD -Inspire Small/Mid Cap Impact ETF
After the bounce back rally in January from the stock market drop in December 2018, the small cap and mid cap markets entered a sideways and volatile trading pattern for the rest of the year. The positive returns for the Fund were attained by late February and even with the roller coaster ride the Fund came back to that level by 11-30-2019. For the twelve months ending 11-30-2019 ISMD has returned 6.42% on a market price basis and 6.42% on the NAV. Since inception (2-27-2017) ISMD has an annualized return of 5.82% on a market price basis and 5.81% on the NAV.
IBD – Inspire Corporate Bond Impact ETF
The three interest rate cuts in 2019 by the Federal Reserve have had a positive effect on the corporate bond market, manifesting in positive total returns for IBD over that past year. It is now widely believed that the Federal Reserve will not lower interest rates again and will wait to see if the economy slows in 2020 or starts to grow too fast before making another move. We believe that interest rates will remain stable for the next 6 months and could remain unchanged throughout 2020. For the twelve months ending 11-30-2019 IBD has returned 8.75% on a market price basis and 8.91% on the NAV. Since inception (7-10-2017) IBD has an annualized return of 3.46% on a market price basis and 3.36% on the NAV.
BIBL – Inspire 100 ETF
BIBL has approximately 100 US Large Cap positions that are capitalization weighted. BIBL was designed to give advisors and investors a Biblically Responsible alternative to the popular market cap weighted
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funds that are so prevalent in the marketplace (i.e. SPY or VOO). We are pleased that BIBL has performed as expected and participated in the strong US Large cap market performance in 2019 with a strong, double digit return. For the twelve months ending 11-30-2019 BIBL has returned 14.67% on a market price basis and 14.64% on the NAV. Since inception (10-30-2017) BIBL has an annualized return of 9.78% on a market price basis and 9.76% on the NAV.
WWJD – Inspire International ESG ETF
The Lord Blessed and we were able to launch our 5th ETF on 9-30-2019. The Inspire International ESG ETF holds approximately 150 stocks with an 80% exposure to International Developed markets and 20% to Emerging markets. Although the Fund has only been in existence for two months, the performance has been positive so far. In addition. we believe that the international and emerging markets should have an opportunity to play a more positive role in portfolios in 2020. Since inception, 9-30-2019, for the NAV and market price, WWJD has returned 6.04% and 6.88% respectively.
Closing Comments
2019 has been a busy and blessed 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 good year and a welcome change from this time a year ago. Like last year, and the year before, there are still many economic and geo-political situations that can cause fear to some, as well the election year about to begin in earnest, 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 2020.
Sincerely,
Darrell Jayroe, CIO
Inspire Investing
Inspire, the Adviser, provides the indexes for the Inspire ETFs 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 ETF may not fully replicate the Index, it is subject to the risk that investment management strategy may not produce the intended results.
The Inspire ETFs are new with a limited history of operations for investors to evaluate. There is no guarantee that the Funds will achieve their objective, generate positive returns, or avoid losses.
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
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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 a fund 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 http://www.inspire investing.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. 9828-NLD-12/26/2019
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Inspire Global Hope ETF |
PORTFOLIO REVIEW (Unaudited) |
November 30, 2019 |
The Fund’s performance figures* for the periods ended November 30, 2019, as compared to its benchmarks:
Annualized | ||
Since Inception** - | ||
One Year | November 30, 2019 | |
Inspire Global Hope ETF - NAV | 14.60% | 8.19% |
Inspire Global Hope ETF - Market Price | 14.65% | 8.66% |
Inspire Global Hope Large Cap Equal Weight Index *** | 15.37% | 9.15% |
S&P Global 1200 Total Return Index **** | 14.95% | 11.08% |
MSCI All Country World Index Net Total Return(USD) ***** | 13.68% | 9.92% |
* | 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, 2020 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 0.62% per the April 1, 2019 prospectus, as amended December 23, 2019.
** | 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 the adviser’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 S&P Global 1200 Total Return Index provides efficient exposure to the global equity market. Capturing approximately 70% of global market capitalization, it is constructed as a composite of 7 headline indices, many of which are accepted leaders in their regions. These include the S&P 500® (US), S&P Europe 350, S&P TOPIX 150 (Japan), S&P/TSX 60 (Canada), S&P/ASX All Australian 50, S&P Asia 50 and S&P Latin America 40. |
***** | The MSCI All Country World Index Net Total Return (USD) (ACWI) 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, the 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.
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Inspire Global Hope ETF |
PORTFOLIO REVIEW (Unaudited)(Continued) |
November 30, 2019 |
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 | 8.0 | % | ||
Real Estate | 6.5 | % | ||
Chemicals | 5.9 | % | ||
Utilities | 5.6 | % | ||
Banking | 4.7 | % | ||
Medical Equipment & Devices | 4.7 | % | ||
Retail - Discretionary | 4.7 | % | ||
Semiconductors | 4.1 | % | ||
Transportation & Logistics | 4.0 | % | ||
Machinery | 3.6 | % | ||
Insurance | 3.2 | % | ||
Other Sectors | 44.0 | % | ||
Cash & Cash Equivalents | 1.0 | % | ||
100.0 | % | |||
Please refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Fund’s holdings.
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Inspire Small/Mid Cap Impact ETF |
PORTFOLIO REVIEW (Unaudited) |
November 30, 2019 |
The Fund’s performance figures* for the periods ended November 30, 2019, as compared to its benchmarks:
Annualized | ||
Since Inception** - | ||
One Year | November 30, 2019 | |
Inspire Small/Mid Cap Impact ETF - NAV | 6.42% | 5.81% |
Inspire Small/Mid Cap Impact ETF - Market Price | 6.42% | 5.82% |
Inspire Small/Mid Cap Impact Equal Weight Index *** | 6.38% | 6.42% |
S&P SmallCap 600 Equal Weight Total Return Index **** | 2.17% | 4.83% |
S&P 500 Total Return Index ***** | 16.11% | 12.98% |
* | 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, 2020 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 0.60% 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 0.72% per the April 1, 2019 prospectus, as amended December 23, 2019.
** | As of the commencement of operations on February 27, 2017. |
*** | InspireSmall/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 the adviser’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. The adviser 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 SmallCap 600 Equal Weight Total Return Index (EWI) is the equal-weight version of the S&P SmallCap 600. The index has the same constituents as the capitalization weighted S&P SmallCap 600, but each company in the S&P SmallCap 600 EWI is allocated a fixed weight. |
***** | The S&P 500 Total Return Index (TR) 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, the 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, 2019 |
Comparison of the Change in Value of a $10,000 Investment
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Banking | 9.0 | % | ||
Real Estate | 7.1 | % | ||
Oil, Gas & Coal | 5.3 | % | ||
Biotechnology & Pharmaceutical | 5.2 | % | ||
Software | 4.3 | % | ||
Money Market Funds | 4.1 | % | ||
Semiconductors | 3.6 | % | ||
Consumer Products | 3.3 | % | ||
Retail - Discretionary | 3.2 | % | ||
Chemicals | 3.1 | % | ||
Insurance | 3.1 | % | ||
Machinery | 3.1 | % | ||
Other Sectors | 48.7 | % | ||
Liabilities in excess of other assets | (3.1 | )% | ||
100.5 | % | |||
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, 2019 |
The Fund’s performance figures* for the periods ended November 30, 2019, as compared to its benchmarks:
Annualized | ||
Since Inception** - | ||
One Year | November 30, 2019 | |
Inspire Corporate Bond Impact ETF - NAV | 8.91% | 3.36% |
Inspire Corporate Bond Impact ETF - Market Price | 8.75% | 3.46% |
Inspire Corporate Bond Impact Equal Weight Index *** | 10.68% | 4.53% |
Bloomberg Barclays U.S. Intermediate Credit Total Return Index **** | 10.29% | 4.20% |
Bloomberg Barclays U.S. Aggregate Bond Total Return Index ***** | 10.79% | 4.22% |
* | 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, 2020 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 0.68% per the April 1, 2019 prospectus, as amended December 23, 2019.
** | As of the commencement of operations on July 10, 2017. |
*** | Inspire Corporate Bond Impact Equal Weight Index (INSP BOND) 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. The adviser 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. Intermediate Credit Total Return Index (LUICRUU) measures the investment grade, fixed-rate, taxable corporate bond market whose maturity ranges between 1 to 9.9999 years. It includes USD denominated securities publicly issued by US and non-US industrial, utility and financial issuers. |
***** | The Bloomberg Barclays U.S. Aggregate Bond Total Return Index (LBUSTRUU) 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, the 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, 2019 |
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 | 15.6 | % | ||
Retail - Consumer Discretionary | 10.8 | % | ||
Utilities | 10.1 | % | ||
Exploration & Production | 7.7 | % | ||
Railroad | 5.4 | % | ||
Pipeline | 4.7 | % | ||
HealthCare Facilities & Services | 4.5 | % | ||
Financial Services | 4.0 | % | ||
Food & Beverage | 4.0 | % | ||
Retail - Consumer Staples | 3.7 | % | ||
Other Sectors | 27.7 | % | ||
Cash & Cash Equivalents | 1.8 | % | ||
100.0 | % | |||
Please refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Fund’s holdings.
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Inspire 100 ETF |
PORTFOLIO REVIEW (Unaudited) |
November 30, 2019 |
The Fund’s performance figures* for the periods ended November 30, 2019, as compared to its benchmarks:
Annualized | ||
Since Inception** - | ||
One Year | November 30, 2019 | |
Inspire 100 ETF - NAV | 14.64% | 9.76% |
Inspire 100 ETF - Market Price | 14.67% | 9.78% |
Inspire 100 Index *** | 15.80% | 10.70% |
S&P 500 Total Return Index **** | 16.11% | 12.28% |
* | 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, 2020 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 0.84% per the April 1, 2019 prospectus, as amended December 23, 2019.
** | As of the commencement of operations on October 30, 2017. |
*** | The Inspire 100 Index (INSP100) 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.
11
Inspire 100 ETF |
PORTFOLIO REVIEW (Unaudited)(Continued) |
November 30, 2019 |
Comparison of the Change in Value of a $10,000 Investment
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Utilities | 11.5 | % | ||
Electrical Equipment | 9.7 | % | ||
Real Estate | 9.4 | % | ||
Semiconductors | 9.2 | % | ||
Machinery | 6.6 | % | ||
Medical Equipment & Devices | 6.4 | % | ||
Transportation & Logistics | 5.1 | % | ||
Oil, Gas, & Coal | 4.9 | % | ||
Biotechnology & Pharmaceutical | 4.8 | % | ||
Technology Services | 4.1 | % | ||
Money Market Funds | 1.6 | % | ||
Other Sectors | 27.4 | % | ||
Liabilities in excess of other assets | (0.7 | )% | ||
100.0 | % | |||
Please refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Fund’s holdings.
12
Inspire International ESG ETF |
PORTFOLIO REVIEW (Unaudited) |
November 30, 2019 |
The Fund’s performance figures* for the period ended November 30, 2019, as compared to its benchmarks:
Since Inception** - | |
November 30, 2019 | |
Inspire International ESG ETF - NAV | 6.04% |
Inspire International ESG ETF - Market Price | 6.88% |
Inspire Global Hope Ex-US GTR Index **** | 5.90% |
S&P International 700 Total Return Index ***** | 4.51% |
* | 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 total annual operating expenses (gross) are estimated to be 0.80% for the first full year of operations per the September 23, 2019 prospectus, as amended December 23, 2019.
** | As of the commencement of operations on September 30, 2019. |
**** | The Inspire Global Hope Ex-US GTR Index (IGHXUSG) intends to track the price movements of a portfolio of 150 of the most inspiring, biblically aligned large cap companies outside of the United States. The index is comprised of 80% international developed large cap companies and 20% emerging markets large cap companies. The adviser defines “large cap” as a market capitalization of $5B USD or greater. The index is equally weighted, rebalanced quarterly and calculated on a gross total return basis in USD. |
***** | The S&P International 700 Total Return Index measures the non-U.S. component of the global equity market through an index that is designed to be highly liquid and efficient to replicate. The index covers all regions included in the S&P Global 1200 except for the U.S., which is represented by the S&P 500. |
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.
13
Inspire International ESG ETF |
PORTFOLIO REVIEW (Unaudited)(Continued) |
November 30, 2019 |
Comparison of the Change in Value of a $10,000 Investment
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Banking | 8.5 | % | ||
Chemicals | 7.0 | % | ||
Real Estate | 5.2 | % | ||
Electrical Equipment | 4.8 | % | ||
Transportation & Logistics | 4.7 | % | ||
Insurance | 4.5 | % | ||
Metals & Mining | 3.6 | % | ||
Commercial Services | 3.4 | % | ||
Retail - Discretionary | 3.4 | % | ||
Oil, Gas, & Coal | 3.2 | % | ||
Other Sectors | 40.8 | % | ||
Cash & Cash Equivalents | 10.9 | % | ||
100.0 | % | |||
Please refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Fund’s holdings.
14
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS |
November 30, 2019 |
Shares | Value | |||||||
COMMON STOCKS - 99.0% | ||||||||
AEROSPACE & DEFENSE - 0.3% | ||||||||
2,420 | Harris Corp. | $ | 486,638 | |||||
APPAREL & TEXTILE PRODUCTS - 1.3% | ||||||||
14,816 | Capri Holdings Ltd.* | 550,266 | ||||||
6,820 | Cie Financiere Richemont SA | 519,749 | ||||||
1,845 | Swatch Group AG | 516,936 | ||||||
5,830 | VF Corp. | 516,188 | ||||||
2,103,139 | ||||||||
ASSET MANAGEMENT - 2.0% | ||||||||
11,118 | E* TRADE Financial Corp. | 492,527 | ||||||
17,820 | Franklin Resources, Inc. | 489,872 | ||||||
5,192 | Groupe Bruxelles Lambert SA | 527,245 | ||||||
30,360 | Invesco Ltd. | 533,122 | ||||||
201,960 | Melrose Industries PLC | 599,797 | ||||||
660 | Partners Group Holding AG | 556,874 | ||||||
3,199,437 | ||||||||
AUTOMOTIVE - 1.4% | ||||||||
13,970 | BorgWarner, Inc. | 587,439 | ||||||
4,620 | Cie Generale des Etablissements Michelin | 554,738 | ||||||
18,700 | Nokian Renkaat OYJ | 506,394 | ||||||
16,170 | Valeo SA | 637,567 | ||||||
2,286,138 | ||||||||
BANKING - 4.7% | ||||||||
66,990 | Bank Hapoalim | 541,117 | ||||||
73,068 | Bank Leumi Le-Israel | 530,833 | ||||||
87,780 | Commerzbank AG * | 509,193 | ||||||
9,024 | Commonwealth Bank of Australia | 493,312 | ||||||
42,020 | Credit Agricole SA | 575,203 | ||||||
35,860 | Danske Bank A/S | 484,526 | ||||||
99,000 | Investec PLC | 562,040 | ||||||
8,025 | KBC Group NV | 585,231 | ||||||
5,720 | Macquarie Group Ltd. | 534,117 | ||||||
5,830 | mBank SA * | 554,819 | ||||||
433,608 | Metropolitan Bank & Trust Co. | 565,316 | ||||||
123,200 | Natixis SA | 515,243 | ||||||
31,060 | People’s United Financial, Inc. | 512,490 | ||||||
21,890 | Raiffeisen Bank International AG | 514,337 | ||||||
7,477,777 | ||||||||
BIOTECHNOLOGY & PHARMACEUTICAL - 2.4% | ||||||||
5,060 | Alexion Pharmaceuticals, Inc. * | 576,536 | ||||||
7,040 | BioMarin Pharmaceutical, Inc. * | 568,198 | ||||||
6,600 | Incyte Corp. * | 621,456 | ||||||
1,760 | Regeneron Pharmaceuticals, Inc. * | 649,440 | ||||||
6,930 | Seattle Genetics, Inc. * | 834,026 | ||||||
2,970 | Vertex Pharmaceuticals, Inc. * | 658,598 | ||||||
3,908,254 | ||||||||
See accompanying notes to financial statements.
15
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
CHEMICALS - 5.9% | ||||||||
1,892,550 | AKR Corporindo Tbk PT | $ | 456,198 | |||||
5,504 | Akzo Nobel NV | 527,493 | ||||||
5,596 | Arkema SA | 580,365 | ||||||
4,510 | Avery Dennison Corp. | 587,969 | ||||||
10,445 | Brenntag AG | 557,522 | ||||||
10,340 | CF Industries Holdings, Inc. | 477,811 | ||||||
8,580 | Croda International PLC | 552,692 | ||||||
7,150 | Eastman Chemical Co. | 560,346 | ||||||
5,720 | FMC Corp. | 560,331 | ||||||
220 | Givaudan SA | 647,001 | ||||||
12,650 | Imerys SA | 502,124 | ||||||
104,940 | Israel Chemicals Ltd. | 492,932 | ||||||
13,640 | Johnson Matthey PLC | 507,070 | ||||||
37,510 | K+S AG | 424,132 | ||||||
5,831 | LyondellBasell Industries NV | 539,601 | ||||||
25,300 | Mosaic Co. | 481,965 | ||||||
4,411 | PPG Industries, Inc. | 568,313 | ||||||
880 | Sherwin-Williams Co. | 513,154 | ||||||
9,537,019 | ||||||||
COMMERCIAL SERVICES - 2.0% | ||||||||
20,895 | Bureau Veritas SA | 547,403 | ||||||
1,980 | Cintas Corp. | 508,979 | ||||||
10,220 | Edenred | 507,650 | ||||||
212,630 | G4S PLC | 575,103 | ||||||
7,251 | Intertek Group PLC | 517,355 | ||||||
10,230 | Randstad Holding NV | 596,240 | ||||||
3,252,730 | ||||||||
CONSTRUCTION MATERIALS - 1.3% | ||||||||
21,384 | ACC Ltd. | 453,733 | ||||||
30,470 | James Hardie Industries PLC - ADR | 596,863 | ||||||
10,124 | LafargeHolcim Ltd. | 522,333 | ||||||
1,870 | Martin Marietta Materials, Inc. | 501,908 | ||||||
2,074,837 | ||||||||
CONSUMER PRODUCTS - 2.1% | ||||||||
16,535 | Associated British Foods PLC | 549,459 | ||||||
4,730 | JM Smucker Co. | 497,076 | ||||||
89,187 | Natura Cosmeticos SA | 697,119 | ||||||
55,330 | Orkla ASA | 536,262 | ||||||
71,060 | Pioneer Foods Group Ltd. | 522,536 | ||||||
417,884 | Sime Darby Plantation Berhad * | 498,279 | ||||||
3,300,731 | ||||||||
CONSUMER SERVICES - 0.3% | ||||||||
175,665 | Kroton Educacional SA | 431,238 | ||||||
CONTAINERS & PACKAGING - 1.6% | ||||||||
52,360 | Amcor Ltd. - ADR | 540,099 | ||||||
6,820 | Ball Corp. | 450,529 | ||||||
66,220 | Brambles Ltd. | 562,130 | ||||||
See accompanying notes to financial statements.
16
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
CONTAINERS & PACKAGING (continued) - 1.6% | ||||||||
11,790 | International Paper Co. | $ | 546,349 | |||||
12,318 | Sealed Air Corp. | 464,758 | ||||||
2,563,865 | ||||||||
DISTRIBUTORS - CONSUMER STAPLES - 0.3% | ||||||||
6,490 | Sysco Corp. | 522,770 | ||||||
DISTRIBUTORS - DISCRETIONARY - 0.3% | ||||||||
19,188 | Bunzl PLC | 526,922 | ||||||
ELECTRICAL EQUIPMENT - 3.0% | ||||||||
25,656 | ABB Ltd. | 561,462 | ||||||
4,766 | Allegion PLC | 572,063 | ||||||
5,610 | AMETEK, Inc. | 555,446 | ||||||
6,267 | Eaton Corp PLC | 579,698 | ||||||
11,660 | Johnson Controls International PLC | 499,398 | ||||||
8,783 | Kone OYJ | 550,253 | ||||||
23,100 | Prysmian SpA | 526,976 | ||||||
1,406 | Roper Technologies, Inc. | 506,680 | ||||||
2,200 | Schindler Holding AG | 548,817 | ||||||
4,900,793 | ||||||||
ENGINEERING & CONSTRUCTION SERVICES - 1.6% | ||||||||
22,395 | Boskalis Westminster | 523,733 | ||||||
26,730 | Fluor Corp. | 466,171 | ||||||
5,610 | Jacobs Engineering Group, Inc. | 516,625 | ||||||
43,230 | LendLease Group | 564,639 | ||||||
4,620 | Vinci SA | 504,206 | ||||||
2,575,374 | ||||||||
FOREST & PAPER PRODUCTS - 0.4% | ||||||||
17,930 | UPM-Kymmene OYJ | 599,415 | ||||||
GAMING, LODGING & RESTAURANTS - 0.3% | ||||||||
8,945 | Whitbread PLC | 532,353 | ||||||
HARDWARE - 1.5% | ||||||||
1,982 | Arista Networks, Inc.* | 386,748 | ||||||
20,900 | Juniper Networks, Inc. | 523,754 | ||||||
9,790 | Seagate Technology PLC | 584,267 | ||||||
60,830 | Telefonaktiebolaget LM Ericsson | 548,427 | ||||||
8,470 | Western Digital Corp. | 426,295 | ||||||
2,469,491 | ||||||||
HEALTH CARE FACILITIES & SERVICES - 1.4% | ||||||||
6,083 | AmerisourceBergen Corp. | 534,757 | ||||||
8,800 | DaVita, Inc. * | 631,576 | ||||||
4,180 | HCA Healthcare, Inc. | 579,599 | ||||||
11,440 | Ramsay Health Care Ltd. | 564,720 | ||||||
2,310,652 | ||||||||
See accompanying notes to financial statements.
17
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
HOME & OFFICE PRODUCTS - 2.9% | ||||||||
9,790 | DR Horton, Inc. | $ | 541,876 | |||||
1,090 | Geberit AG | 585,493 | ||||||
12,540 | Leggett & Platt, Inc. | 656,093 | ||||||
9,240 | Lennar Corp. - Class A | 551,166 | ||||||
4,180 | Mohawk Industries, Inc. * | 582,567 | ||||||
19,250 | Persimmon PLC | 636,939 | ||||||
3,120 | Snap-on, Inc. | 500,635 | ||||||
3,582 | Stanley Black & Decker, Inc. | 565,025 | ||||||
4,619,794 | ||||||||
INDUSTRIAL SERVICES - 0.7% | ||||||||
16,055 | Fastenal Co. | 570,274 | ||||||
46,530 | Rexel SA | 568,192 | ||||||
1,138,466 | ||||||||
INSTITUTIONAL FINANCIAL SERVICES - 1.0% | ||||||||
5,500 | Intercontinental Exchange, Inc. | 517,935 | ||||||
5,600 | London Stock Exchange Group PLC | 497,781 | ||||||
4,950 | Nasdaq, Inc. | 518,760 | ||||||
1,534,476 | ||||||||
INSURANCE - 3.2% | ||||||||
3,960 | Assurant, Inc. | 526,165 | ||||||
4,400 | Cincinnati Financial Corp. | 471,020 | ||||||
136,510 | Direct Line Insurance Group PLC | 539,263 | ||||||
25,157 | Gjensidige Forsikring ASA | 473,797 | ||||||
90,986 | Insurance Australia Group Ltd. | 485,574 | ||||||
165,330 | Legal & General Group PLC | 600,717 | ||||||
59,290 | QBE Insurance Group Ltd. | 508,516 | ||||||
77,660 | RSA Insurance Group PLC | 553,900 | ||||||
12,320 | Sampo OYJ | 498,534 | ||||||
17,160 | Unum Group | 527,498 | ||||||
5,184,984 | ||||||||
IRON & STEEL - 2.1% | ||||||||
22,220 | Anglo American PLC | 582,448 | ||||||
23,760 | BHP Billiton PLC | 525,544 | ||||||
83,724 | Fortescue Metals Group Ltd. | 551,019 | ||||||
10,010 | Nucor Corp. | 564,164 | ||||||
9,790 | Rio Tinto PLC | 532,052 | ||||||
95,256 | Tata Steel Ltd. | 567,652 | ||||||
3,322,879 | ||||||||
MACHINERY - 3.6% | ||||||||
25,850 | Alfa Laval AB | 636,248 | ||||||
3,068 | Deere & Co. | 515,577 | ||||||
5,182 | Dover Corp. | 577,689 | ||||||
10,890 | Flowserve Corp. | 530,343 | ||||||
3,300 | Illinois Tool Works, Inc. | 575,289 | ||||||
42,460 | IMI PLC | 615,676 | ||||||
2,860 | Parker-Hannifin Corp. | 568,539 | ||||||
32,450 | Sandvik AB | 590,376 | ||||||
See accompanying notes to financial statements.
18
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
MACHINERY (continued) - 3.6% | ||||||||
86,832 | WEG SA | $ | 610,122 | |||||
6,288 | Xylem, Inc. | 487,383 | ||||||
5,707,242 | ||||||||
MEDIA - 0.6% | ||||||||
3,190 | Naspers Ltd. | 456,061 | ||||||
15,950 | Trip.com Group Limited | 530,178 | ||||||
986,239 | ||||||||
MEDICAL EQUIPMENT & DEVICES - 4.7% | ||||||||
6,710 | Agilent Technologies, Inc. | 541,967 | ||||||
4,180 | Coloplast A/S | 494,218 | ||||||
18,370 | Demant A/S* | 562,507 | ||||||
9,570 | Dentsply Sirona, Inc. | 541,088 | ||||||
2,310 | Edwards Lifesciences Corp. * | 565,811 | ||||||
3,520 | Essilor International SA | 547,243 | ||||||
1,875 | IDEXX Laboratories, Inc. * | 471,712 | ||||||
1,760 | Illumina, Inc. * | 564,538 | ||||||
975 | Intuitive Surgical, Inc. * | 578,077 | ||||||
770 | Mettler-Toledo International, Inc.* | 553,946 | ||||||
20,900 | Smith & Nephew PLC | 467,962 | ||||||
4,290 | Varian Medical Systems, Inc.* | 573,702 | ||||||
2,310 | Waters Corp. * | 512,982 | ||||||
3,630 | Zimmer Biomet Holdings, Inc. | 527,366 | ||||||
7,503,119 | ||||||||
METALS & MINING - 2.5% | ||||||||
45,043 | Antofagasta PLC | 505,724 | ||||||
20,366 | Boliden AB | 525,525 | ||||||
50,600 | Freeport-McMoRan, Inc. | 575,828 | ||||||
54,560 | Fresnillo PLC | 407,632 | ||||||
212,960 | Grupo Mexico SAB de CV | 559,872 | ||||||
19,800 | Newcrest Mining Ltd. | 411,960 | ||||||
12,540 | Newmont Mining Corp. | 481,536 | ||||||
141,053 | Norsk Hydro ASA | 499,297 | ||||||
3,967,374 | ||||||||
OIL, GAS & COAL - 8.0% | ||||||||
5,524,310 | Adaro Energy Tbk PT | 481,737 | ||||||
20,020 | Apache Corp. | 446,046 | ||||||
28,270 | Cabot Oil & Gas Corp. | 450,624 | ||||||
29,590 | Caltex Australia Ltd. | 691,707 | ||||||
8,132 | ConocoPhillips | 487,432 | ||||||
38,772 | Cosan SA Industria e Comercio | 571,085 | ||||||
20,460 | Devon Energy Corp. | 447,869 | ||||||
30,976 | Eni SpA | 468,390 | ||||||
6,490 | EOG Resources, Inc. | 460,141 | ||||||
44,990 | EQT Corp. | 392,763 | ||||||
25,960 | Halliburton Co. | 544,900 | ||||||
12,430 | Helmerich & Payne, Inc. | 491,358 | ||||||
24,036 | Kinder Morgan, Inc. | 471,346 | ||||||
See accompanying notes to financial statements.
19
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
OIL, GAS & COAL (continued) - 8.0% | ||||||||
10,010 | Koninklijke Vopak NV | $ | 534,082 | |||||
41,470 | Marathon Oil Corp. | 483,125 | ||||||
9,130 | Marathon Petroleum Corp. | 553,643 | ||||||
23,617 | National Oilwell Varco, Inc. | 532,563 | ||||||
22,330 | Noble Energy, Inc. | 463,571 | ||||||
11,110 | Occidental Petroleum Corp. | 428,513 | ||||||
6,820 | ONEOK, Inc. | 484,561 | ||||||
76,032 | Petroleo Brasileiro SA | 523,627 | ||||||
4,840 | Phillips 66 | 555,245 | ||||||
3,850 | Pioneer Natural Resources Co. | 492,184 | ||||||
20,678 | TechnipFMC PLC | 389,574 | ||||||
6,003 | Valero Energy Corp. | 573,226 | ||||||
20,900 | Williams Cos, Inc. | 474,848 | ||||||
12,894,160 | ||||||||
PASSENGER TRANSPORTATION - 1.1% | ||||||||
1,150,416 | AirAsia Bhd | 465,510 | ||||||
36,080 | easyJet PLC | 624,438 | ||||||
7,810 | Ryanair Holdings PLC - ADR | 650,729 | ||||||
1,740,677 | ||||||||
REAL ESTATE - 6.5% | ||||||||
2,200 | American Tower Corp. | 470,866 | ||||||
9,900 | Apartment Investment & Management Co. | 532,323 | ||||||
2,453 | AvalonBay Communities, Inc. | 525,948 | ||||||
28,604 | Ayala Corp. | 453,701 | ||||||
506,140 | Ayala Land, Inc. | 453,200 | ||||||
3,778 | Boston Properties, Inc. | 523,404 | ||||||
72,160 | British Land Co PLC | 537,260 | ||||||
4,903 | COVIVIO | 542,768 | ||||||
3,520 | Crown Castle International Corp. | 470,483 | ||||||
880 | Equinix, Inc. | 498,828 | ||||||
5,940 | Equity Residential | 505,494 | ||||||
1,540 | Essex Property Trust, Inc. | 480,757 | ||||||
49,254 | Goodman Group | 493,734 | ||||||
118,360 | GPT Group | 492,361 | ||||||
144,793 | Hammerson PLC | 556,626 | ||||||
14,300 | Healthpeak Properties, Inc. | 498,784 | ||||||
48,433 | Land Securities Group PLC | 600,420 | ||||||
15,225 | Macerich Co. | 410,009 | ||||||
6,050 | Prologis, Inc. | 553,878 | ||||||
2,090 | Public Storage | 440,321 | ||||||
3,133 | Simon Property Group, Inc. | 473,741 | ||||||
10,514,906 | ||||||||
RENEWABLE ENERGY - 0.4% | ||||||||
6,270 | Vestas Wind Systems A/S | 597,169 | ||||||
See accompanying notes to financial statements.
20
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
RETAIL - CONSUMER STAPLES - 1.6% | ||||||||
1,760 | Costco Wholesale Corp. | $ | 527,666 | |||||
4,578 | Dollar Tree, Inc. * | 418,704 | ||||||
190,740 | J Sainsbury PLC | 528,726 | ||||||
201,342 | Wm Morrison Supermarkets PLC | 516,445 | ||||||
19,690 | Woolworths Ltd. | 529,536 | ||||||
2,521,077 | ||||||||
RETAIL - DISCRETIONARY - 4.7% | ||||||||
3,190 | Advance Auto Parts, Inc. | 501,085 | ||||||
440 | AutoZone, Inc. * | 518,285 | ||||||
5,830 | CarMax, Inc. * | 567,026 | ||||||
5,280 | Genuine Parts Co. | 551,074 | ||||||
16,921 | JD.com, Inc. - ADR * | 552,471 | ||||||
194,197 | Kingfisher PLC | 527,256 | ||||||
10,340 | Kohl’s Corp. | 486,083 | ||||||
4,620 | Lowe’s Cos, Inc. | 541,972 | ||||||
217,800 | Marks & Spencer Group PLC | 547,532 | ||||||
7,039 | Next PLC | 615,313 | ||||||
1,320 | O’Reilly Automotive, Inc. * | 583,810 | ||||||
12,100 | Pandora A/S | 487,471 | ||||||
4,730 | Ross Stores, Inc. | 549,389 | ||||||
5,500 | Tractor Supply Co. | 519,420 | ||||||
7,548,187 | ||||||||
SEMICONDUCTORS - 4.1% | ||||||||
4,619 | Analog Devices, Inc. | 521,716 | ||||||
2,090 | ASML Holding NV | 569,196 | ||||||
1,760 | Broadcom Ltd. | 556,530 | ||||||
3,190 | KLA-Tencor Corp. | 522,713 | ||||||
2,200 | Lam Research Corp. | 587,026 | ||||||
8,642 | Maxim Integrated Products, Inc. | 489,742 | ||||||
5,610 | Microchip Technology, Inc. | 530,369 | ||||||
10,450 | Micron Technology, Inc. * | 496,479 | ||||||
2,970 | NVIDIA Corp. | 643,718 | ||||||
4,840 | NXP Semiconductors NV | 559,407 | ||||||
26,510 | STMicroelectronics NV - ADR | 646,049 | ||||||
5,280 | Xilinx, Inc. | 489,878 | ||||||
6,612,823 | ||||||||
SOFTWARE - 2.4% | ||||||||
3,867 | Atlassian Corp. PLC * | 491,534 | ||||||
7,130 | Cerner Corp. | 510,437 | ||||||
59,400 | Sage Group PLC | 579,174 | ||||||
1,872 | ServiceNow, Inc.* | 529,851 | ||||||
4,290 | Splunk, Inc. * | 640,154 | ||||||
36,072 | Totvs SA | 542,833 | ||||||
3,300 | Veeva Systems, Inc.* | 492,294 | ||||||
3,786,277 | ||||||||
See accompanying notes to financial statements.
21
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
SPECIALTY FINANCE - 1.7% | ||||||||
3,850 | Fidelity National Information | $ | 531,877 | |||||
4,840 | Fiserv, Inc. * | 562,602 | ||||||
1,760 | FleetCor Technologies, Inc.* | 540,179 | ||||||
16,274 | Housing Development Finance Corp. | 521,142 | ||||||
23,100 | Western Union Co. | 620,928 | ||||||
2,776,728 | ||||||||
TECHNOLOGY SERVICES - 1.8% | ||||||||
7,977 | Cognizant Technology Solutions | 511,405 | ||||||
15,950 | Experian PLC | 528,781 | ||||||
44,496 | Infosys Ltd. | 431,919 | ||||||
5,941 | Paychex, Inc. | 511,639 | ||||||
17,280 | Tata Consultancy Services Ltd. | 494,583 | ||||||
3,190 | Verisk Analytics, Inc. | 470,461 | ||||||
2,948,788 | ||||||||
TELECOMMUNICATIONS - 0.6% | ||||||||
27,280 | Eutelsat Communications SA | 447,876 | ||||||
61,930 | Mobile TeleSystems PJSC - ADR | 584,619 | ||||||
1,032,495 | ||||||||
TRANSPORTATION & LOGISTICS - 4.0% | ||||||||
2,851 | Aeroports de Paris | 557,974 | ||||||
75,020 | Babcock International Group PLC | 572,915 | ||||||
6,115 | CH Robinson Worldwide, Inc. | 469,938 | ||||||
6,817 | Expeditors International of | 509,639 | ||||||
5,895 | Fraport AG Frankfurt Airport | 502,567 | ||||||
32,890 | Grupo Aeroportuario del Sureste | 565,363 | ||||||
4,510 | JB Hunt Transport Services, Inc. | 521,446 | ||||||
3,850 | Kansas City Southern | 586,817 | ||||||
3,410 | Kuehne + Nagel International AG | 554,827 | ||||||
2,608 | Norfolk Southern Corp. | 504,648 | ||||||
194,999 | Royal Mail PLC | 525,903 | ||||||
3,043 | Union Pacific Corp. | 535,538 | ||||||
6,407,575 | ||||||||
TRANSPORTATION EQUIPMENT - 0.7% | ||||||||
7,205 | PACCAR, Inc. | 586,271 | ||||||
36,080 | Volvo AB | 557,475 | ||||||
1,143,746 | ||||||||
UTILITIES - 5.6% | ||||||||
468,306 | Aboitiz Equity Ventures, Inc. | 451,118 | ||||||
30,661 | AES Corp. | 579,800 | ||||||
39,380 | AGL Energy Ltd. | 543,654 | ||||||
16,610 | CenterPoint Energy, Inc. | 407,942 | ||||||
40,845 | Cia de Saneamento Basico do Estado de Sao Paulo* | 549,069 | ||||||
147,528 | Cia Energetica de Minas Gerais | 452,531 | ||||||
7,920 | CMS Energy Corp. | 485,496 | ||||||
6,270 | Dominion Energy, Inc. | 521,100 | ||||||
4,290 | Entergy Corp. | 499,313 | ||||||
5,940 | Eversource Energy | 490,882 | ||||||
See accompanying notes to financial statements.
22
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
UTILITIES (continued) - 5.6% | ||||||||
10,450 | FirstEnergy Corp. | $ | 498,361 | |||||
16,940 | NiSource, Inc. | 448,063 | ||||||
306,936 | NTPC Ltd. | 497,815 | ||||||
95,700 | Origin Energy Ltd. | 563,164 | ||||||
5,260 | Pinnacle West Capital Corp. | 459,671 | ||||||
16,176 | PPL Corp. | 550,469 | ||||||
5,390 | WEC Energy Group, Inc. | 477,823 | ||||||
7,805 | Xcel Energy, Inc. | 479,929 | ||||||
8,956,200 | ||||||||
WASTE & ENVIRONMENT SERVICES & EQUIPMENT - 0.4% | ||||||||
13,750 | Pentair PLC | 609,812 | ||||||
TOTAL COMMON STOCKS (Cost $146,305,772) | 159,114,766 | |||||||
TOTAL INVESTMENTS - 99.0% (Cost $146,305,772) | $ | 159,114,766 | ||||||
OTHER ASSETS LESS LIABILITIES - 1.0% | 1,558,214 | |||||||
NET ASSETS - 100.0% | $ | 160,672,980 | ||||||
* | Non-Income producing security. |
AB - Aktiebolag
ADR - American Depositary Receipt
AG - Aktiengesellschaft
ASA - Allmennaksjeselskap
A/S - Aktieselskab
NV - Naamloze vennootschap
OYJ - Osakeyhtiö
PLC - Public Limited Company
PT - Perseroan Terbatas
SA - Société anonyme
SAB de CV - Sociedad Anonima Bursatil de Capital Variable
SpA - Societa per azioni
See accompanying notes to financial statements.
23
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS |
November 30, 2019 |
Shares | Value | |||||||
COMMON STOCKS - 99.0% | ||||||||
AEROSPACE & DEFENSE - 1.2% | ||||||||
4,392 | AAR Corp. | $ | 196,278 | |||||
3,672 | Aerojet Rocketdyne Holdings, Inc.* | 162,302 | ||||||
3,096 | Aerovironment, Inc.* | 189,909 | ||||||
3,024 | Axon Enterprise, Inc.* | 223,171 | ||||||
3,522 | Barnes Group, Inc. | 208,467 | ||||||
2,304 | Moog, Inc. | 197,844 | ||||||
1,177,971 | ||||||||
APPAREL & TEXTILE PRODUCTS - 0.9% | ||||||||
6,840 | Crocs, Inc.* | 238,716 | ||||||
2,736 | Oxford Industries, Inc. | 203,613 | ||||||
5,472 | Steven Madden Ltd. | 232,396 | ||||||
6,696 | Wolverine World Wide, Inc. | 214,942 | ||||||
889,667 | ||||||||
ASSET MANAGEMENT - 1.6% | ||||||||
6,624 | Artisan Partners Asset Management, Inc. | 196,534 | ||||||
8,784 | Blucora, Inc. * | 206,775 | ||||||
3,528 | Cohen & Steers, Inc. | 236,835 | ||||||
5,904 | Federated Investors, Inc. | 197,902 | ||||||
8,640 | Kennedy-Wilson Holdings, Inc. | 195,350 | ||||||
4,896 | Legg Mason, Inc. | 191,336 | ||||||
3,295 | Stifel Financial Corp. | 206,003 | ||||||
11,088 | Waddell & Reed Financial, Inc. ^ | 179,071 | ||||||
1,609,806 | ||||||||
AUTOMOTIVE - 2.0% | ||||||||
23,904 | American Axle & Manufacturing Holdings, Inc. * | 235,693 | ||||||
7,560 | Cooper Tire & Rubber Co. | 217,879 | ||||||
4,536 | Cooper-Standard Holdings, Inc. * | 128,958 | ||||||
13,032 | Dana, Inc. | 220,892 | ||||||
2,376 | Dorman Products, Inc. * | 176,584 | ||||||
4,680 | Gentherm, Inc.* | 195,858 | ||||||
5,616 | Methode Electronics, Inc. | 208,971 | ||||||
4,410 | Standard Motor Products, Inc. | 222,132 | ||||||
14,760 | Tenneco, Inc. | 182,876 | ||||||
2,448 | Visteon Corp. * | 228,961 | ||||||
2,018,804 | ||||||||
BANKING - 9.0% | ||||||||
4,824 | Ameris Bancorp | 210,568 | ||||||
5,040 | A tlantic Union Bankshares Corp. | 190,512 | ||||||
6,840 | Axos Financial, Inc.* | 201,438 | ||||||
6,480 | BancorpSouth Bank | 201,528 | ||||||
2,232 | Bank of Hawaii Corp. | 201,126 | ||||||
3,384 | Banner Corp. | 184,868 | ||||||
13,078 | Brookline Bancorp, Inc. | 209,902 | ||||||
13,608 | Capitol Federal Financial, Inc. | 192,961 | ||||||
5,365 | Cathay General Bancorp | 197,539 | ||||||
See accompanying notes to financial statements.
24
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
BANKING (continued) - 9.0% | ||||||||
2,448 | City Holding Co. | $ | 194,567 | |||||
5,231 | Columbia Banking System, Inc. | 204,427 | ||||||
3,024 | Community Bank System, Inc. | 205,178 | ||||||
8,856 | CVB Financial Corp. | 189,164 | ||||||
19,224 | First BanCorp/Puerto Rico | 201,852 | ||||||
7,776 | First Financial Bancorp | 189,112 | ||||||
4,714 | First Interstate BancSystem, Inc. | 198,459 | ||||||
9,576 | First Midwest Bancorp, Inc. | 206,459 | ||||||
11,520 | Fulton Financial Corp. | 197,683 | ||||||
4,680 | Glacier Bancorp, Inc. | 205,218 | ||||||
5,832 | Great Western Bancorp, Inc. | 200,446 | ||||||
4,968 | Hancock Whitney Corp. | 201,750 | ||||||
7,776 | Hilltop Holdings, Inc. | 191,523 | ||||||
10,008 | Home BancShares, Inc. | 188,351 | ||||||
13,176 | Hope Bancorp, Inc. | 191,184 | ||||||
4,824 | International Bancshares Corp. | 204,634 | ||||||
5,184 | NBT Bancorp, Inc. | 207,360 | ||||||
11,448 | Northwest Bancshares, Inc. | 190,495 | ||||||
10,872 | Old National Bancorp | 196,566 | ||||||
2,736 | Prosperity Bancshares, Inc. | 192,204 | ||||||
7,632 | Provident Financial Services, Inc. | 185,610 | ||||||
5,400 | Renasant Corp. | 191,160 | ||||||
5,112 | S&T Bancorp, Inc. | 192,825 | ||||||
5,760 | ServisFirst Bancshares, Inc. | 209,434 | ||||||
7,488 | Simmons First National Corp. | 194,014 | ||||||
5,544 | Southside Bancshares, Inc. | 194,650 | ||||||
4,824 | TCF Financial Corp. | 204,972 | ||||||
3,384 | Texas Capital Bancshares, Inc. | 195,595 | ||||||
2,304 | Tompkins Financial Corp. | 199,872 | ||||||
6,840 | Towne Bank/Portsmouth VA | 192,546 | ||||||
5,616 | Trustmark Corp. | 192,966 | ||||||
6,840 | United Community Banks, Inc. | 212,040 | ||||||
17,424 | Valley National Bancorp | 201,770 | ||||||
5,040 | Washington Federal, Inc. | 185,522 | ||||||
5,040 | WesBanco, Inc. | 183,859 | ||||||
3,024 | Westamerica Bancorporation | 196,560 | ||||||
8,880,469 | ||||||||
BIOTECHNOLOGY & PHARMACEUTICAL - 5.2% | ||||||||
8,136 | Aerie Pharmaceuticals, Inc.* ^ | 154,503 | ||||||
3,168 | Cambrex Corp.* | 189,985 | ||||||
41,616 | Clovis Oncology, Inc.* ^ | 621,327 | ||||||
8,928 | Coherus Biosciences, Inc. * | 160,615 | ||||||
3,672 | Emergent BioSolutions, Inc.* | 201,446 | ||||||
2,664 | Enanta Pharmaceuticals, Inc.* | 169,590 | ||||||
11,664 | Halozyme Therapeutics, Inc.* | 226,165 | ||||||
17,568 | Innoviva, Inc.* | 236,817 | ||||||
See accompanying notes to financial statements.
25
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
BIOTECHNOLOGY & PHARMACEUTICAL (continued) - 5.2% | ||||||||
2,808 | Intercept Pharmaceuticals, Inc.* ^ | $ | 304,303 | |||||
20,016 | Ironwood Pharmaceuticals, Inc.* | 240,592 | ||||||
1,800 | Ligand Pharmaceuticals, Inc.* | 203,400 | ||||||
4,032 | Medicines Co.* ^ | 339,494 | ||||||
14,256 | Momenta Pharmaceuticals, Inc.* | 239,501 | ||||||
5,112 | Pacira Pharmaceuticals, Inc.* | 236,277 | ||||||
8,568 | Phibro Animal Health Corp. | 207,860 | ||||||
6,480 | Portola Pharmaceuticals, Inc.* | 185,004 | ||||||
5,472 | Prestige Consumer Healthcare, Inc.* | 206,677 | ||||||
16,056 | Puma Biotechnology, Inc.* | 152,371 | ||||||
6,912 | Radius Health, Inc. * | 154,829 | ||||||
21,600 | Spectrum Pharmaceuticals, Inc.* | 193,968 | ||||||
6,840 | Supernus Pharmaceuticals, Inc.* | 159,919 | ||||||
11,267 | Theravance Biopharma, Inc.* | 245,170 | ||||||
4,320 | Ultragenyx Pharmaceutical, Inc.* | 171,288 | ||||||
5,201,101 | ||||||||
CHEMICALS - 3.1% | ||||||||
1,944 | Balchem Corp. | 193,681 | ||||||
4,176 | Cabot Corp. | 196,230 | ||||||
9,288 | GCP Applied Technologies, Inc. * | 207,773 | ||||||
4,032 | HB Fuller Co. | 201,116 | ||||||
2,088 | Innospec, Inc. | 205,459 | ||||||
15,336 | Kronos Worldwide, Inc. | 211,177 | ||||||
3,024 | Materion Corp. | 177,993 | ||||||
3,600 | Minerals Technologies, Inc. | 194,400 | ||||||
10,440 | Olin Corp. | 182,909 | ||||||
5,976 | PolyOne Corp. | 188,423 | ||||||
1,152 | Quaker Chemical Corp. | 171,913 | ||||||
2,808 | Sensient Technologies Corp. | 177,718 | ||||||
2,016 | Stepan Co. | 195,350 | ||||||
4,320 | Trinseo SA | 164,117 | ||||||
8,650 | Univar, Inc. * | 202,583 | ||||||
1,080 | WD-40 Co. | 208,559 | ||||||
3,079,401 | ||||||||
COMMERCIAL SERVICES - 2.1% | ||||||||
5,256 | ABM Industries, Inc. | 199,675 | ||||||
3,456 | AMN Healthcare Services, Inc.* | 205,528 | ||||||
3,600 | Brady Corp. | 205,200 | ||||||
2,376 | Corvel Corp.* | 196,044 | ||||||
1,800 | FTI Consulting, Inc. * | 196,182 | ||||||
7,704 | Healthcare Services Group, Inc. ^ | 193,756 | ||||||
5,184 | HMS Holdings Corp. * | 156,557 | ||||||
5,040 | Korn/Ferry International | 197,971 | ||||||
2,952 | TriNet Group, Inc. * | 161,622 | ||||||
1,008 | UniFirst Corp. | 207,900 | ||||||
2,880 | Viad Corp. | 181,152 | ||||||
2,101,587 | ||||||||
See accompanying notes to financial statements.
26
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
CONSTRUCTION MATERIALS - 1.3% | ||||||||
5,616 | Boise Cascade Co | $ | 212,959 | |||||
2,086 | Eagle Materials, Inc. | 191,975 | ||||||
7,704 | Louisiana-Pacific Corp. | 228,501 | ||||||
2,808 | Simpson Manufacturing Co,. Inc. | 228,010 | ||||||
8,568 | Summit Materials, Inc.* | 204,518 | ||||||
4,824 | Universal Forest Products, Inc. | 239,270 | ||||||
1,305,233 | ||||||||
CONSUMER PRODUCTS - 3.3% | ||||||||
9,720 | B&G Foods, Inc. ^ | 160,963 | ||||||
4,248 | Cal-Maine Foods, Inc. | 184,915 | ||||||
6,899 | Central Garden & Pet Co. * | 181,996 | ||||||
648 | Coca-Cola Bottling Co. Consolidated | 175,064 | ||||||
9,648 | Darling Ingredients, Inc. * | 229,622 | ||||||
5,976 | Edgewell Personal Care Co. | 186,212 | ||||||
4,464 | Energizer Holdings, Inc. | 222,709 | ||||||
6,264 | Fresh Del Monte Produce, Inc. | 204,833 | ||||||
8,928 | Hain Celestial Group, Inc.* | 220,700 | ||||||
1,224 | Helen of Troy Ltd.* | 197,578 | ||||||
2,808 | Inter Parfums, Inc. | 197,936 | ||||||
1,008 | J&J Snack Foods Corp. | 186,480 | ||||||
4,464 | Nu Skin Enterprises, Inc. | 170,703 | ||||||
8,431 | Revlon, Inc. * ^ | 209,173 | ||||||
1,224 | Sanderson Farms, Inc. | 202,670 | ||||||
5,256 | Tootsie Roll Industries, Inc. | 180,544 | ||||||
3,456 | Treehouse Foods, Inc* | 168,964 | ||||||
3,281,062 | ||||||||
CONSUMER SERVICES - 1.4% | ||||||||
11,088 | 2U, Inc. * ^ | 276,535 | ||||||
3,168 | Aaron’s, Inc. | 185,011 | ||||||
4,608 | Adtalem Global Education, Inc. * | 155,428 | ||||||
5,544 | Matthews International Corp. | 212,612 | ||||||
1,800 | Medifast, Inc. | 158,238 | ||||||
7,272 | Rent-A-Car, Inc. | 189,290 | ||||||
1,296 | Strategic Education, Inc. | 183,695 | ||||||
1,360,809 | ||||||||
CONTAINERS & PACKAGING - 0.6% | ||||||||
4,968 | Greif, Inc. | 214,369 | ||||||
18,936 | Owens-Illinois, Inc. | 187,088 | ||||||
6,408 | Silgan Holdings, Inc. | 197,430 | ||||||
598,887 | ||||||||
DESIGN, MANUFACTURING & DISTRIBUTION - 0.7% | ||||||||
6,624 | Benchmark Electronics, Inc. | 228,329 | ||||||
3,585 | Fabrinet* | 216,857 | ||||||
3,096 | Plexus Corp.* | 234,986 | ||||||
680,172 | ||||||||
DISTRIBUTORS - CONSUMER STAPLES - 0.4% | ||||||||
7,416 | Andersons, Inc. | 171,310 | ||||||
2,016 | Calavo Growers, Inc. | 179,807 | ||||||
351,117 | ||||||||
See accompanying notes to financial statements.
27
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
DISTRIBUTORS - DISCRETIONARY - 0.7% | ||||||||
2,448 | ePlus, Inc.* | $ | 204,579 | |||||
7,704 | G-III Apparel Group Ltd. * | 228,038 | ||||||
3,528 | Insight Enterprises, Inc.* | 231,402 | ||||||
664,019 | ||||||||
ELECTRICAL EQUIPMENT - 1.9% | ||||||||
3,960 | AAON, Inc. | 195,505 | ||||||
3,312 | Advanced Energy Industries, Inc. * | 212,664 | ||||||
3,528 | Badger Meter, Inc. | 218,736 | ||||||
3,744 | Belden, Inc. | 201,203 | ||||||
2,376 | Generac Holdings, Inc. * | 234,036 | ||||||
2,520 | Itron, Inc. * | 201,802 | ||||||
1,800 | OSI Systems, Inc. * | 179,082 | ||||||
4,752 | SPX Corp. | 227,051 | ||||||
2,016 | Watts Water Technologies, Inc. | 195,471 | ||||||
1,865,550 | ||||||||
ENGINEERING & CONSTRUCTION SERVICES - 1.6% | ||||||||
4,464 | Comfort Systems USA, Inc. | 228,110 | ||||||
3,816 | Dycom Industries, Inc. * | 198,623 | ||||||
2,736 | Exponent, Inc. | 173,873 | ||||||
5,832 | Granite Construction, Inc. | 150,232 | ||||||
3,240 | Installed Building Products, Inc.* | 232,308 | ||||||
7,547 | KBR, Inc. | 224,674 | ||||||
3,024 | MasTec, Inc. * | 200,612 | ||||||
2,016 | TopBuild Corp. * | 222,324 | ||||||
1,630,756 | ||||||||
FOREST & PAPER PRODUCTS - 0.2% | ||||||||
2,952 | Neenah Paper, Inc. | 214,847 | ||||||
GAMING, LODGING & RESTAURANTS - 1.4% | ||||||||
4,752 | Cheesecake Factory, Inc. | 207,235 | ||||||
2,664 | Dine Brands Global, Inc. | 220,792 | ||||||
13,248 | Extended Stay America, Inc. | 195,540 | ||||||
2,088 | Jack in the Box, Inc. | 165,558 | ||||||
4,241 | Papa John’s International, Inc. | 268,370 | ||||||
1,872 | Shake Shack, Inc.* | 116,027 | ||||||
2,160 | Wingstop, Inc. | 172,800 | ||||||
1,346,322 | ||||||||
HARDWARE - 3.0% | ||||||||
22,608 | 3D Systems Corp. * | 191,942 | ||||||
2,664 | Cubic Corp. | 158,641 | ||||||
46,584 | Fitbit, Inc. * | 324,225 | ||||||
3,528 | InterDigital, Inc. | 200,390 | ||||||
9,360 | Knowles Corp. * | 204,984 | ||||||
3,312 | Lumentum Holdings, Inc. * | 243,962 | ||||||
2,304 | Mercury Systems, Inc.* | 168,768 | ||||||
5,832 | NCR Corp.* | 191,465 | ||||||
6,192 | NetGear, Inc. * | 155,481 | ||||||
See accompanying notes to financial statements.
28
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
HARDWARE (continued) - 3.0% | ||||||||
8,064 | NetScout Systems, Inc. * | $ | 203,213 | |||||
41,976 | Pitney Bowes, Inc. | 197,707 | ||||||
5,112 | Plantronics, Inc. | 129,538 | ||||||
15,408 | TTM Technologies, Inc.* | 206,621 | ||||||
12,960 | Viavi Solutions, Inc. * | 194,659 | ||||||
6,120 | Vicor Corp.* | 251,348 | ||||||
3,022,944 | ||||||||
HEALTHCARE FACILITIES - SERVICES - 1.9% | ||||||||
5,832 | Acadia Healthcare Co., Inc. * | 187,557 | ||||||
24,912 | Brookdale Senior Living, Inc. * | 177,872 | ||||||
3,816 | Ensign Group, Inc. | 165,729 | ||||||
1,584 | LHC Group, Inc.* | 211,306 | ||||||
3,024 | Magellan Health, Inc. * | 235,056 | ||||||
8,208 | MEDNAX, Inc.* | 214,393 | ||||||
11,304 | Select Medical Holdings Corp. * | 249,931 | ||||||
7,992 | Tenet Healthcare Corp. * | 257,342 | ||||||
1,440 | US Physical Therapy, Inc. | 168,278 | ||||||
1,867,464 | ||||||||
HOME & OFFICE PRODUCTS - 2.6% | ||||||||
2,232 | American Woodmark Corp.* | 229,673 | ||||||
2,016 | Armstrong World Industries, Inc. | 193,576 | ||||||
1,008 | Cavco Industries, Inc.* | 201,610 | ||||||
4,176 | Herman Miller, Inc. | 199,529 | ||||||
5,472 | HNI Corp. | 214,995 | ||||||
3,096 | iRobot Corp.* ^ | 134,862 | ||||||
6,048 | KB Home | 209,140 | ||||||
2,304 | LGI Homes, Inc.* | 166,510 | ||||||
4,536 | MDC Holdings, Inc. | 179,490 | ||||||
2,736 | Meritage Homes Corp.* | 182,053 | ||||||
7,632 | Taylor Morrison Home Corp.* | 177,215 | ||||||
2,520 | Tempur Sealy International, Inc.* | 213,898 | ||||||
12,816 | TRI Pointe Group, Inc.* | 199,673 | ||||||
11,436 | Tupperware Brands Corp. | 96,634 | ||||||
2,598,858 | ||||||||
INDUSTRIAL SERVICES - 0.9% | ||||||||
2,880 | Anixter International, Inc. * | 247,219 | ||||||
3,456 | Applied Industrial Technologies, Inc. | 220,666 | ||||||
3,162 | Kaman Corp. | 201,103 | ||||||
4,104 | WESCO International, Inc. * | 215,952 | ||||||
884,940 | ||||||||
INSTITUTIONAL FINANCIAL SERVICES - 0.2% | ||||||||
4,176 | Houlihan Lokey, Inc. | 199,070 | ||||||
INSURANCE - 3.1% | ||||||||
7,848 | American Equity Investment Life Holding Co. | 233,243 | ||||||
2,880 | Amerisafe, Inc. | 194,688 | ||||||
2,736 | Argo Group International Holdings Ltd. | 179,974 | ||||||
See accompanying notes to financial statements.
29
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
INSURANCE (continued) - 3.1% | ||||||||
11,640 | CNO Financial Group, Inc. | $ | 210,917 | |||||
2,376 | eHealth, Inc.* | 219,210 | ||||||
4,362 | Employers Holdings, Inc. | 187,435 | ||||||
3,240 | FBL Financial Group | 186,527 | ||||||
42,912 | Genworth Financial, Inc.* | 169,932 | ||||||
4,176 | Horace Mann Educators Corp. | 181,280 | ||||||
3,456 | Mercury General Corp. | 169,275 | ||||||
7,992 | National General Holdings Corp. | 170,150 | ||||||
4,752 | ProAssurance Corp. | 178,675 | ||||||
2,078 | RLI Corp. | 189,867 | ||||||
1,872 | Safety Insurance Group, Inc. | 182,801 | ||||||
4,104 | United Fire Group, Inc. | 180,330 | ||||||
6,696 | Universal Insurance Holdings, Inc. | 194,854 | ||||||
3,029,158 | ||||||||
IRON & STEEL - 1.0% | ||||||||
9,216 | Allegheny Technologies, Inc. | 212,521 | ||||||
3,528 | Carpenter Technology Corp. | 185,467 | ||||||
25,128 | Cleveland-Cliffs, Inc. * ^ | 200,773 | ||||||
10,656 | Commercial Metals Co. | 227,612 | ||||||
5,112 | Worthington Industries, Inc. | 195,790 | ||||||
1,022,163 | ||||||||
LEISURE PRODUCTS - 0.6% | ||||||||
10,008 | Callaway Golf Co. | 207,966 | ||||||
3,024 | Fox Factory Holding Corp.* | 199,372 | ||||||
3,528 | Thor Industries, Inc. | 224,981 | ||||||
632,319 | ||||||||
MACHINERY - 3.1% | ||||||||
7,777 | Actuant Corp. | 191,003 | ||||||
1,584 | Alamo Group, Inc. | 181,843 | ||||||
2,160 | Albany International Corp. | 180,749 | ||||||
5,976 | Federal Signal Corp. | 196,849 | ||||||
4,104 | Franklin Electric Co., Inc. | 227,649 | ||||||
6,264 | Hillenbrand, Inc. | 198,068 | ||||||
1,872 | John Bean Technologies Corp. | 205,078 | ||||||
6,192 | Kennametal, Inc. | 215,667 | ||||||
17,640 | Mueller Water Products, Inc. | 198,979 | ||||||
2,592 | Regal Beloit Corp. | 211,844 | ||||||
6,840 | Rexnord Corp. * | 216,076 | ||||||
4,896 | SPX Flow, Inc.* | 232,070 | ||||||
2,664 | Tennant Co. | 198,361 | ||||||
6,984 | Terex Corp. | 196,041 | ||||||
11,160 | Welbilt, Inc. * | 186,260 | ||||||
3,036,537 | ||||||||
MANUFACTURED GOODS - 1.9% | ||||||||
4,464 | AZZ, Inc. | 169,944 | ||||||
2,880 | Chart Industries, Inc.* | 158,976 | ||||||
2,736 | EnPro Industries, Inc. | 181,643 | ||||||
See accompanying notes to financial statements.
30
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
MANUFACTURED GOODS (continued) - 1.9% | ||||||||
4,176 | Gibraltar Industries, Inc. * | $ | 218,071 | |||||
6,624 | Mueller Industries, Inc. | 207,927 | ||||||
1,800 | Proto Labs, Inc. * | 174,402 | ||||||
5,544 | Raven Industries, Inc. | 190,547 | ||||||
1,144 | RBC Bearings, Inc. * | 189,767 | ||||||
4,320 | Timken Co. | 227,189 | ||||||
1,368 | Valmont Industries, Inc. | 195,816 | ||||||
1,914,282 | ||||||||
MEDIA - 1.0% | ||||||||
67,680 | Clear Channel Outdoor Holdings, Inc.* | 167,846 | ||||||
14,400 | EW Scripps Co. | 214,848 | ||||||
4,176 | John Wiley & Sons, Inc. | 197,358 | ||||||
5,328 | Shutterstock, Inc.* | 221,538 | ||||||
2,592 | Stamps.com, Inc. * | 226,152 | ||||||
1,027,742 | ||||||||
MEDICAL EQUIPMENT & DEVICES - 2.7% | ||||||||
5,112 | Avanos Medical, Inc. * | 177,182 | ||||||
4,608 | BioTelemetry, Inc.* | 213,396 | ||||||
2,376 | Cantel Medical Corp. | 182,714 | ||||||
6,624 | CryoLife, Inc. | 163,812 | ||||||
4,032 | Inogen, Inc. * | 296,796 | ||||||
2,448 | Integer Holdings Corp.* | 185,681 | ||||||
8,568 | Luminex Corp. | 181,042 | ||||||
6,120 | Merit Medical Systems, Inc. * | 171,360 | ||||||
6,840 | Myriad Genetics, Inc. * | 176,062 | ||||||
6,120 | Natus Medical, Inc. * | 195,779 | ||||||
2,520 | Neogen Corp. * | 167,756 | ||||||
2,808 | NuVasive, Inc. * | 202,850 | ||||||
2,376 | Repligen Corp.* | 210,870 | ||||||
6,696 | Varex Imaging Corp. * | 200,478 | ||||||
2,725,778 | ||||||||
METALS & MINING - 1.1% | ||||||||
3,312 | Compass Minerals International, Inc. | 183,054 | ||||||
3,384 | Encore Wire Corp. | 197,423 | ||||||
9,648 | Harsco Corp. | 214,668 | ||||||
92,664 | Hecla Mining Co. | 228,880 | ||||||
1,944 | Kaiser Aluminum Corp. | 213,024 | ||||||
1,037,049 | ||||||||
OIL, GAS & COAL - 5.3% | ||||||||
12,096 | Alliance Resource Partners LP | 127,008 | ||||||
18,432 | Archrock, Inc. | 155,013 | ||||||
42,336 | Callon Petroleum Co. * ^ | 154,526 | ||||||
21,672 | Carrizo Oil & Gas, Inc. * | 138,918 | ||||||
4,968 | Crestwood Equity Partners LP | 157,585 | ||||||
25,776 | Diamond Offshore Drilling, Inc. ^ | 145,634 | ||||||
See accompanying notes to financial statements.
31
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
OIL, GAS & COAL (continued) - 5.3% | ||||||||
3,456 | Dril-Quip, Inc. * | $ | 146,051 | |||||
23,688 | Enerplus Corp. | 146,629 | ||||||
22,320 | EnLink Midstream LLC | 106,020 | ||||||
37,512 | Frank’s International NV | 191,311 | ||||||
60,048 | Gulfport Energy Corp. * | 142,314 | ||||||
7,560 | Holly Energy Partners LP | 169,042 | ||||||
28,512 | Kosmos Energy Ltd. * | 170,217 | ||||||
81,288 | McDermott International, Inc. * ^ | 65,063 | ||||||
14,760 | MRC Global, Inc. * | 196,898 | ||||||
2,160 | Murphy USA, Inc. * | 253,865 | ||||||
81,936 | Nabors Industries Ltd. | 168,788 | ||||||
13,680 | NGL Energy Partners LP | 135,842 | ||||||
15,696 | NOW, Inc. * | 175,952 | ||||||
49,464 | Oasis Petroleum, Inc. * | 115,746 | ||||||
13,464 | Oceaneering International, Inc. | 180,552 | ||||||
13,608 | Oil States International, Inc.* | 216,912 | ||||||
19,656 | Patterson-UTI Energy, Inc. | 175,725 | ||||||
6,264 | PDC Energy, Inc.* | 142,381 | ||||||
43,776 | QEP Resources, Inc. | 143,148 | ||||||
11,448 | SemGroup Corp. | 175,956 | ||||||
17,712 | SM Energy Co. | 147,187 | ||||||
92,664 | Southwestern Energy Co.* | 168,648 | ||||||
5,982 | Sunoco LP | 186,339 | ||||||
16,560 | US Silica Holdings, Inc. | 81,641 | ||||||
28,440 | Valaris PLC* ^ | 121,154 | ||||||
6,336 | Viper Energy Partners LP | 150,290 | ||||||
20,088 | Whiting Petroleum Corp. * | 92,003 | ||||||
4,554 | World Fuel Services Corp. | 193,090 | ||||||
5,237,448 | ||||||||
PASSENGER TRANSPORTATION - 0.6% | ||||||||
1,296 | Allegiant Travel Co. | 219,970 | ||||||
6,984 | Hawaiian Holdings, Inc. | 211,545 | ||||||
3,312 | SkyWest, Inc. | 207,464 | ||||||
638,979 | ||||||||
REAL ESTATE - 7.1% | ||||||||
6,476 | Acadia Realty Trust | 174,075 | ||||||
2,592 | Agree Realty Corp. | 193,830 | ||||||
7,704 | Alexander & Baldwin, Inc. | 167,023 | ||||||
4,104 | American Assets Trust, Inc. | 195,063 | ||||||
12,744 | Brandywine Realty Trust | 196,640 | ||||||
8,208 | CareTrust REIT, Inc. | 171,383 | ||||||
8,928 | Columbia Property Trust, Inc. | 185,345 | ||||||
11,232 | CoreCivic, Inc. | 170,165 | ||||||
6,552 | Corporate Office Properties Trust | 191,187 | ||||||
18,576 | DiamondRock Hospitality Co. | 191,333 | ||||||
6,768 | Four Corners Property Trust, Inc. | 191,670 | ||||||
See accompanying notes to financial statements.
32
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
REAL ESTATE (continued) - 7.1% | ||||||||
11,232 | GEO Group, Inc. | $ | 155,676 | |||||
6,048 | Getty Realty Corp. | 202,971 | ||||||
13,248 | Independence Realty Trust, Inc. | 197,925 | ||||||
12,096 | Kite Realty Group Trust | 234,058 | ||||||
18,360 | Lexington Realty Trust | 203,429 | ||||||
3,816 | LTC Properties, Inc. | 178,627 | ||||||
8,928 | Mack-Cali Realty Corp. | 190,970 | ||||||
6,480 | Office Properties Income Trust | 216,174 | ||||||
6,912 | Outfront Media, Inc. | 172,662 | ||||||
10,800 | Physicians Realty Trust | 207,252 | ||||||
9,288 | Piedmont Office Realty Trust, Inc. | 205,451 | ||||||
4,608 | PotlatchDeltic Corp. | 200,125 | ||||||
3,816 | QTS Realty Trust, Inc. | 202,515 | ||||||
10,440 | Retail Opportunity Investments Corp. | 190,426 | ||||||
4,320 | Rexford Industrial Realty, Inc. | 206,755 | ||||||
11,016 | RLJ Lodging Trust | 188,263 | ||||||
3,528 | Saul Centers, Inc. | 187,478 | ||||||
21,096 | Senior Housing Properties Trust | 154,423 | ||||||
6,336 | STAG Industrial, Inc. | 196,353 | ||||||
16,432 | Summit Hotel Properties, Inc. | 199,156 | ||||||
12,096 | Tanger Factory Outlet Centers, Inc. ^ | 184,101 | ||||||
4,608 | Taubman Centers, Inc. | 149,668 | ||||||
24,696 | Uniti Group, Inc. | 165,957 | ||||||
9,792 | Urban Edge Properties | 202,988 | ||||||
6,984 | Washington Real Estate Investment Trust | 216,993 | ||||||
8,928 | Xenia Hotels & Resorts, Inc. | 188,024 | ||||||
7,026,134 | ||||||||
RECREATION FACILITIES & SERVICES - 0.2% | ||||||||
6,912 | SeaWorld Entertainment, Inc. | 202,383 | ||||||
RENEWABLE ENERGY - 0.2% | ||||||||
2,808 | EnerSys | 197,037 | ||||||
RETAIL - CONSUMER STAPLES - 0.8% | ||||||||
7,848 | Big Lots, Inc. | 164,023 | ||||||
2,664 | PriceSmart, Inc. | 199,107 | ||||||
9,936 | Sprouts Farmers Market, Inc. * | 196,733 | ||||||
4,968 | Weis Markets, Inc. ^ | 197,875 | ||||||
757,738 | ||||||||
RETAIL - DISCRETIONARY - 3.2% | ||||||||
1,872 | Asbury Automotive Group, Inc.* | 207,492 | ||||||
9,360 | Builders FirstSource, Inc. * | 237,838 | ||||||
8,280 | Caleres, Inc. | 181,249 | ||||||
2,448 | Children’s Place, Inc. ^ | 176,892 | ||||||
11,016 | Designer Brands, Inc. | 181,764 | ||||||
4,968 | Dicks Sporting Goods, Inc. | 227,584 | ||||||
3,240 | Dillard’s, Inc. ^ | 232,632 | ||||||
See accompanying notes to financial statements.
33
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
RETAIL - DISCRETIONARY (continued) - 3.2% | ||||||||
2,160 | Group 1 Automotive, Inc. | $ | 222,674 | |||||
5,688 | La-Z Boy, Inc. | 179,741 | ||||||
1,440 | Lithia Motors, Inc. | 231,235 | ||||||
21,024 | Michaels Cos., Inc.* ^ | 171,976 | ||||||
2,448 | Monro, Inc. | 179,683 | ||||||
32,112 | Party City Holdco, Inc. * ^ | 61,976 | ||||||
1,152 | RH * ^ | 236,840 | ||||||
13,032 | Sally Beauty Holdings, Inc. * | 240,180 | ||||||
4,536 | Sleep Number Corp.* | 218,953 | ||||||
3,188,709 | ||||||||
SEMICONDUCTORS - 3.6% | ||||||||
20,808 | Amkor Technology, Inc. * | 251,570 | ||||||
4,968 | Brooks Automation, Inc. | 222,417 | ||||||
1,368 | Cabot Microelectronics Corp. | 182,505 | ||||||
3,456 | Cirrus Logic, Inc. * | 247,795 | ||||||
1,224 | Coherent, Inc. * | 184,653 | ||||||
4,752 | Diodes, Inc.* | 219,257 | ||||||
5,184 | II-VI, Inc. * | 151,321 | ||||||
3,096 | Inphi Corp. * | 215,574 | ||||||
7,848 | Kulicke & Soffa Industries, Inc. | 196,906 | ||||||
8,640 | MaxLinear, Inc. * | 171,677 | ||||||
2,088 | Power Integrations, Inc. | 191,031 | ||||||
14,328 | Rambus, Inc. * | 186,980 | ||||||
4,032 | Semtech Corp. * | 195,391 | ||||||
5,760 | Silicon Motion Technology Corp. - ADR | 255,168 | ||||||
4,896 | Synaptics, Inc. * | 279,855 | ||||||
10,944 | Vishay Intertechnology, Inc. | 217,676 | ||||||
9,288 | Xperi Corp. | 183,810 | ||||||
3,553,586 | ||||||||
SOFTWARE - 4.3% | ||||||||
6,120 | ACI Worldwide, Inc. * | 229,500 | ||||||
17,208 | Allscripts Healthcare Solutions, Inc. * | 185,502 | ||||||
2,088 | Blackbaud, Inc. | 173,053 | ||||||
4,752 | Bottomline Technologies de, Inc. * | 235,176 | ||||||
11,160 | Box, Inc. * | 203,558 | ||||||
4,248 | CommVault Systems, Inc. * | 215,034 | ||||||
3,450 | Cornerstone OnDemand, Inc. * | 212,762 | ||||||
4,392 | Ebix, Inc. ^ | 152,754 | ||||||
3,240 | Envestnet, Inc. * | 230,720 | ||||||
22,968 | Evolent Health, Inc. * | 165,599 | ||||||
13,680 | FireEye, Inc. * | 229,277 | ||||||
11,304 | Inovalon Holdings, Inc. * | 203,472 | ||||||
2,304 | Manhattan Associates, Inc.* | 192,407 | ||||||
1,296 | MicroStrategy, Inc. * | 194,828 | ||||||
11,736 | NextGen Healthcare, Inc.* | 216,177 | ||||||
See accompanying notes to financial statements.
34
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
SOFTWARE (continued) - 4.3% | ||||||||
2,592 | Omnicell, Inc. * | $ | 207,334 | |||||
4,680 | Progress Software Corp. | 196,607 | ||||||
2,520 | Qualys, Inc. * | 220,525 | ||||||
3,960 | SPS commerce, Inc.* | 223,067 | ||||||
23,688 | TiVo Corp. | 185,003 | ||||||
4,248 | Verint Systems, Inc. * | 206,495 | ||||||
4,278,850 | ||||||||
SPECIALTY FINANCE - 2.9% | ||||||||
8,280 | Aircastle Ltd. | 264,877 | ||||||
9,520 | Apollo Commercial Real Estate Finance, Inc. | 173,930 | ||||||
6,120 | Cardtronics PLC * | 258,386 | ||||||
4,104 | Deluxe Corp. | 209,632 | ||||||
5,112 | Flagstar Bancorp, Inc. | 190,473 | ||||||
2,448 | GATX Corp. | 197,872 | ||||||
6,984 | Green Dot Corp. * | 165,940 | ||||||
11,830 | Invesco Mortgage Capital, Inc. | 192,119 | ||||||
17,064 | Mr. Cooper Group, Inc.* | 229,340 | ||||||
2,880 | Nelnet, Inc. | 181,440 | ||||||
5,400 | PRA Group, Inc. * | 197,856 | ||||||
5,112 | Stewart Information Services Corp. | 218,640 | ||||||
3,384 | Walker & Dunlop, Inc. | 222,126 | ||||||
1,440 | World Acceptance Corp.* ^ | 136,786 | ||||||
2,839,417 | ||||||||
TECHNOLOGY SERVICES - 2.1% | ||||||||
4,176 | CoreLogic, Inc.* | 173,012 | ||||||
3,672 | CSG Systems International, Inc. | 210,002 | ||||||
2,952 | ExlService Holdings, Inc. * | 206,079 | ||||||
3,904 | LiveRamp Holdings, Inc.* | 195,551 | ||||||
2,736 | ManTech International Corp. | 212,259 | ||||||
9,360 | NIC, Inc. | 212,378 | ||||||
5,040 | Perficient, Inc. * | 213,091 | ||||||
6,264 | Sykes Enterprises, Inc.* | 220,117 | ||||||
3,888 | TTEC Holdings, Inc. | 178,576 | ||||||
5,040 | Virtusa Corp.* | 225,238 | ||||||
2,046,303 | ||||||||
TELECOMMUNICATIONS - 1.1% | ||||||||
8,208 | 8x8, Inc. * | 168,428 | ||||||
3,169 | ATN International, Inc. | 177,939 | ||||||
3,384 | Cogen Communications Holdings, Inc. | 212,109 | ||||||
8,640 | Iridium Communications, Inc.* | 201,312 | ||||||
7,484 | Telephone & Data Systems, Inc. | 177,446 | ||||||
15,408 | Vonage Holdings Corp.* | 121,877 | ||||||
1,059,111 | ||||||||
TRANSPORTATION & LOGISTICS - 1.6% | ||||||||
3,024 | Forward Air Corp. | 211,771 | ||||||
9,000 | Heartland Express, Inc. | 192,690 | ||||||
4,104 | Hub Group, Inc. * | 209,591 | ||||||
9,000 | Marten Transport Ltd. | 190,170 | ||||||
See accompanying notes to financial statements.
35
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
TRANSPORTATION & LOGISTICS (continued)- 1.6% | ||||||||
4,968 | Matson, Inc. | $ | 187,492 | |||||
5,688 | Mobile Mini, Inc. | 215,916 | ||||||
2,016 | Saia, Inc.* | 191,318 | ||||||
5,544 | Werner Enterprises, Inc. | 203,798 | ||||||
1,602,746 | ||||||||
TRANSPORTATION EQUIPMENT - 0.6% | ||||||||
6,336 | Greenbrier Co., Inc. | 178,295 | ||||||
6,624 | Navistar International Corp.* | 216,274 | ||||||
9,648 | Trinity Industries, Inc. | 202,994 | ||||||
597,563 | ||||||||
UTILITIES - 2.8% | ||||||||
2,160 | American States Water Co. | 184,226 | ||||||
3,600 | California Water Service Group | 185,040 | ||||||
10,656 | Clearway Energy, Inc. | 211,308 | ||||||
2,880 | El Paso Electric Co. | 195,322 | ||||||
2,520 | MGE Energy, Inc. | 195,351 | ||||||
3,600 | NextEra Energy Partners LP | 191,268 | ||||||
2,730 | Northwest Natural Gas Co. | 187,742 | ||||||
2,520 | NorthWestern Corp. | 180,356 | ||||||
2,592 | Ormat Technologies, Inc. | 199,195 | ||||||
3,543 | Otter Tail Corp. | 174,174 | ||||||
6,984 | Pattern Energy Group, Inc. | 192,200 | ||||||
3,744 | PNM Resources, Inc. | 181,397 | ||||||
5,832 | South Jersey Industries, Inc. | 182,192 | ||||||
7,920 | Suburban Propane Partners LP | 177,568 | ||||||
10,656 | TerraForm Power, Inc. | 165,275 | ||||||
2,802,614 | ||||||||
WASTE & ENVIRONMENT SERVICES & EQUIPMENT - 0.9% | ||||||||
2,448 | Clean Harbors, Inc. * | 202,327 | ||||||
10,800 | Covanta Holding Corp. | 158,868 | ||||||
2,448 | ESCO Technologies, Inc. | 215,595 | ||||||
2,304 | Tetra Tech, Inc. | 203,420 | ||||||
3,024 | US Ecology, Inc. | 166,290 | ||||||
946,500 | ||||||||
TOTAL COMMON STOCKS (Cost $92,406,436) | 98,231,002 | |||||||
See accompanying notes to financial statements.
36
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
COLLATERAL FOR SECURITIES LOANED - 4.1% ^^ | ||||||||
MONEY MARKET FUNDS - 4.1% | ||||||||
820,800 | Fidelity Government Portfolio - Institutional Class, to yield 1.76% + | $ | 820,800 | |||||
3,283,199 | Goldman Sachs Financial Square Prime Obligations Fund - Institutional Class, to yield 1.57% + | 3,283,199 | ||||||
TOTAL MONEY MARKET FUNDS(Cost $4,103,999) | 4,103,999 | |||||||
TOTAL INVESTMENTS - 103.1% (Cost $96,510,435) | $ | 102,335,001 | ||||||
LIABILITIES IN EXCESS OF OTHER ASSETS - (3.1)% | (3,108,908 | ) | ||||||
NET ASSETS - 100.0% | $ | 99,226,093 | ||||||
* | Non - Income producing security |
^ | All or a portion of this security is segregated as collateral for securities on loan as of November 30, 2019. The total value of securities on loan as of November 30, 2019 is $3,819,092. (Note 8) |
^^ | These securities were purchased with cash collateral held from securities on loan. The total value of such securities as November 30, 2019 is $4,103,999. (Note 8) |
+ | Money market fund; interest rate reflects seven-day effective yield on November 30, 2019. |
ADR - American Depositary Receipt
NV - Naamloze vennootschap
LLC - Limited Liability Company
LP - Limited Partnership
PLC - Public Limited Company
REIT - Real Estate Investment Trust
SA - Société anonyme
See accompanying notes to financial statements.
37
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS |
November 30, 2019 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||
CORPORATE BONDS - 98.2% | ||||||||||||
AEROSPACE & DEFENSE - 0.2% | ||||||||||||
20,000 | Harris Corp. | 3.832 | 4/27/2025 | $ | 21,347 | |||||||
100,000 | L3 Technologies, Inc. | 4.950 | 2/15/2021 | 102,304 | ||||||||
100,000 | L3 Technologies, Inc. | 3.850 | 12/15/2026 | 101,298 | ||||||||
224,949 | ||||||||||||
APPAREL & TEXTILE PRODUCTS - 0.9% | ||||||||||||
1,242,000 | VF Corp. | 3.500 | 9/1/2021 | 1,269,865 | ||||||||
AUTO PARTS MANUFACTURING - 1.0% | ||||||||||||
1,242,000 | Aptiv PLC | 4.250 | 1/15/2026 | 1,339,982 | ||||||||
BANKS - 0.3% | ||||||||||||
361,000 | People’s United Financial, Inc. | 3.650 | 12/6/2022 | 373,480 | ||||||||
BIOTECHNOLOGY - 1.5% | ||||||||||||
943,000 | Celgene Corp. | 3.950 | 10/15/2020 | 959,723 | ||||||||
876,000 | Celgene Corp. | 3.625 | 5/15/2024 | 928,088 | ||||||||
125,000 | Celgene Corp. | 3.875 | 8/15/2025 | 135,035 | ||||||||
2,022,846 | ||||||||||||
CHEMICALS - 1.2% | ||||||||||||
250,000 | LyondellBasell Industries NV | 6.000 | 11/15/2021 | 265,758 | ||||||||
275,000 | LyondellBasell Industries NV | 5.750 | 4/15/2024 | 310,315 | ||||||||
1,031,000 | PPG Industries, Inc. | 3.600 | 11/15/2020 | 1,046,269 | ||||||||
1,622,342 | ||||||||||||
CONSUMER FINANCE - 1.4% | ||||||||||||
572,000 | Fidelity National Information Services, Inc. | 4.500 | 10/15/2022 | 608,085 | ||||||||
1,242,000 | Fiserv, Inc. | 3.500 | 10/1/2022 | 1,286,317 | ||||||||
1,894,402 | ||||||||||||
CONSUMER SERVICES - 0.0% | ||||||||||||
58,000 | Block Financial LLC | 5.500 | 11/1/2022 | 62,223 | ||||||||
CONTAINERS & PACKAGING - 1.1% | ||||||||||||
275,000 | International Paper Co. | 3.650 | 6/15/2024 | 289,546 | ||||||||
1,222,000 | International Paper Co. | 3.000 | 2/15/2027 | 1,249,157 | ||||||||
1,538,703 | ||||||||||||
DEPARTMENT STORES - 0.1% | ||||||||||||
100,000 | Kohl’s Corp. | 4.250 | 7/17/2025 | 104,815 | ||||||||
ELECTRICAL EQUIPMENT MANUFACTURING - 1.8% | ||||||||||||
1,127,000 | Amphenol Corp. | 4.000 | 2/1/2022 | 1,162,955 | ||||||||
1,242,000 | Roper Technologies, Inc. | 3.800 | 12/15/2026 | 1,327,405 | ||||||||
2,490,360 | ||||||||||||
See accompanying notes to financial statements.
38
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||
EXPLORATION & PRODUCTION - 7.7% | ||||||||||||
1,218,000 | Apache Corp. | 4.375 | 10/15/2028 | $ | 1,235,803 | |||||||
1,229,000 | ConocoPhillips Co. | 2.400 | 12/15/2022 | 1,239,277 | ||||||||
1,252,000 | ConocoPhillips Co. | 3.350 | 11/15/2024 | 1,323,503 | ||||||||
100,000 | EOG Resources, Inc. | 2.450 | 4/1/2020 | 100,119 | ||||||||
1,152,000 | EOG Resources, Inc. | 2.625 | 3/15/2023 | 1,172,373 | ||||||||
319,000 | EOG Resources, Inc. | 4.150 | 1/15/2026 | 351,250 | ||||||||
1,242,000 | Noble Energy, Inc. | 3.900 | 11/15/2024 | 1,302,982 | ||||||||
1,242,000 | Occidental Petroleum Corp. | 4.100 | 2/1/2021 | 1,263,033 | ||||||||
100,000 | Occidental Petroleum Corp. | 2.600 | 4/15/2022 | 100,440 | ||||||||
1,252,000 | Occidental Petroleum Corp. | 2.700 | 2/15/2023 | 1,259,504 | ||||||||
1,272,000 | Occidental Petroleum Corp. | 3.400 | 4/15/2026 | 1,294,902 | ||||||||
10,643,186 | ||||||||||||
FINANCIAL SERVICES - 4.0% | ||||||||||||
200,000 | Brookfield Finance, Inc. | 4.850 | 3/29/2029 | 228,574 | ||||||||
1,242,000 | Cboe Global Markets, Inc. | 3.650 | 1/12/2027 | 1,333,803 | ||||||||
1,242,000 | Invesco Finance PLC | 4.000 | 1/30/2024 | 1,319,315 | ||||||||
1,239,000 | Nasdaq, Inc. | 3.850 | 6/30/2026 | 1,327,139 | ||||||||
1,242,000 | Nasdaq, Inc. | 4.250 | 6/1/2024 | 1,340,277 | ||||||||
5,549,108 | ||||||||||||
FOOD & BEVERAGE - 4.0% | ||||||||||||
100,000 | JM Smucker Co. | 2.500 | 3/15/2020 | 100,151 | ||||||||
1,242,000 | JM Smucker Co. | 3.500 | 10/15/2021 | 1,275,762 | ||||||||
350,000 | JM Smucker Co. | 3.500 | 3/15/2025 | 367,484 | ||||||||
1,242,000 | Keurig Dr Pepper, Inc. | 3.400 | 11/15/2025 | 1,294,928 | ||||||||
1,242,000 | Keurig Dr Pepper, Inc. | 3.430 | 6/15/2027 | 1,300,125 | ||||||||
1,129,000 | Mead Johnson Nutrition Co. | 4.125 | 11/15/2025 | 1,234,242 | ||||||||
5,572,692 | ||||||||||||
HEALTHCARE FACILITIES & SERVICES - 4.5% | ||||||||||||
1,104,000 | AmerisourceBergen Corp. | 3.500 | 11/15/2021 | 1,130,361 | ||||||||
1,152,000 | AmerisourceBergen Corp. | 3.400 | 5/15/2024 | 1,196,035 | ||||||||
1,242,000 | AmerisourceBergen Corp. | 3.250 | 3/1/2025 | 1,289,594 | ||||||||
1,204,000 | Express Scripts Holding Co. | 3.900 | 2/15/2022 | 1,241,301 | ||||||||
125,000 | Express Scripts Holding Co. | 4.500 | 2/25/2026 | 135,158 | ||||||||
1,272,000 | Express Scripts Holding Co. | 3.400 | 3/1/2027 | 1,302,205 | ||||||||
6,294,654 | ||||||||||||
HOME IMPROVEMENT- 0.9% | ||||||||||||
1,242,000 | Stanley Black & Decker, Inc. | 3.400 | 12/1/2021 | 1,274,950 | ||||||||
INDUSTRIAL OTHER - 0.9% | ||||||||||||
1,242,000 | Fluor Corp. | 3.500 | 12/15/2024 | 1,234,405 | ||||||||
LIFE INSURANCE - 1.8% | ||||||||||||
1,242,000 | Torchmark Corp. | 4.550 | 9/15/2028 | 1,383,399 | ||||||||
1,058,000 | Unum Group | 5.625 | 9/15/2020 | 1,086,834 | ||||||||
2,470,233 | ||||||||||||
See accompanying notes to financial statements.
39
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||
MACHINERY MANUFACTURING - 3.6% | ||||||||||||
1,127,000 | Dover Corp. | 4.300 | 3/1/2021 | $ | 1,157,873 | |||||||
1,242,000 | Illinois Tool Works, Inc. | 2.650 | 11/15/2026 | 1,278,619 | ||||||||
1,242,000 | John Deere Capital Corp. | 3.050 | 1/6/2028 | 1,307,233 | ||||||||
1,152,000 | Parker-Hannifin Corp. | 3.300 | 11/21/2024 | 1,197,904 | ||||||||
20,000 | Pentair Finance SA | 2.650 | 12/1/2019 | 20,000 | ||||||||
4,961,629 | ||||||||||||
MASS MERCHANTS - 0.1% | ||||||||||||
192,000 | Costco Wholesale Corporation | 1.700 | 12/15/2019 | 191,991 | ||||||||
MEDICAL EQUIPMENT & DEVICES MANUFACTURING - 0.8% | ||||||||||||
1,125,000 | Zimmer Biomet Holdings, Inc. | 3.550 | 4/1/2025 | 1,182,137 | ||||||||
OIL & GAS SERVICES & EQUIPMENT - 2.8% | ||||||||||||
1,232,000 | Baker Hughes | 3.337 | 12/15/2027 | 1,276,605 | ||||||||
1,252,000 | Halliburton Co. | 3.800 | 11/15/2025 | 1,320,759 | ||||||||
1,252,000 | National Oilwell Varco, Inc. | 2.600 | 12/1/2022 | 1,265,741 | ||||||||
3,863,105 | ||||||||||||
PHARMACEUTICALS - 1.0% | ||||||||||||
1,242,000 | Zoetis, Inc. | 3.900 | 8/20/2028 | 1,356,676 | ||||||||
PIPELINE - 4.7% | ||||||||||||
65,000 | Kinder Morgan Energy Partners LP | 6.850 | 2/15/2020 | 65,584 | ||||||||
140,000 | Kinder Morgan Energy Partners LP | 5.300 | 9/15/2020 | 143,389 | ||||||||
742,000 | Kinder Morgan Energy Partners LP | 3.950 | 9/1/2022 | 771,457 | ||||||||
39,000 | Kinder Morgan Energy Partners LP | 4.300 | 5/1/2024 | 41,525 | ||||||||
125,000 | Kinder Morgan, Inc. | 4.300 | 6/1/2025 | 134,853 | ||||||||
1,152,000 | ONEOK Partners LP | 4.900 | 3/15/2025 | 1,259,738 | ||||||||
759,000 | Williams Partners LP | 5.250 | 3/15/2020 | 765,629 | ||||||||
1,242,000 | Williams Partners LP | 3.350 | 8/15/2022 | 1,273,027 | ||||||||
375,000 | Williams Partners LP | 4.300 | 3/4/2024 | 396,326 | ||||||||
1,242,000 | Williams Partners LP | 3.900 | 1/15/2025 | 1,295,353 | ||||||||
385,000 | Williams Partners LP | 4.000 | 9/15/2025 | 406,040 | ||||||||
6,552,921 | ||||||||||||
RAILROAD - 5.4% | ||||||||||||
360,000 | Norfolk Southern Corp. | 3.250 | 12/1/2021 | 368,062 | ||||||||
1,242,000 | Norfolk Southern Corp. | 3.000 | 4/1/2022 | 1,268,603 | ||||||||
117,000 | Norfolk Southern Corp. | 3.850 | 1/15/2024 | 124,376 | ||||||||
1,242,000 | Norfolk Southern Corp. | 2.900 | 6/15/2026 | 1,282,662 | ||||||||
See accompanying notes to financial statements.
40
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||
RAILROAD (continued) - 5.4% | ||||||||||||
1,227,000 | Union Pacific Corp. | 4.000 | 2/1/2021 | $ | 1,250,158 | |||||||
1,242,000 | Union Pacific Corp. | 3.646 | 2/15/2024 | 1,312,946 | ||||||||
195,000 | Union Pacific Corp. | 3.750 | 3/15/2024 | 206,897 | ||||||||
125,000 | Union Pacific Corp. | 2.750 | 3/1/2026 | 128,788 | ||||||||
183,000 | Union Pacific Corp. | 3.000 | 4/15/2027 | 193,334 | ||||||||
1,242,000 | Union Pacific Corp. | 3.950 | 9/10/2028 | 1,375,266 | ||||||||
7,511,092 | ||||||||||||
REAL ESTATE - 15.6% | ||||||||||||
480,000 | American Tower Corp. | 3.125 | 1/15/2027 | 490,987 | ||||||||
1,104,000 | AvalonBay Communities, Inc. | 2.950 | 9/15/2022 | 1,129,316 | ||||||||
40,000 | AvalonBay Communities, Inc. | 2.850 | 3/15/2023 | 40,971 | ||||||||
1,227,000 | Boston Properties LP | 4.125 | 5/15/2021 | 1,257,400 | ||||||||
1,242,000 | Boston Properties LP | 2.750 | 10/1/2026 | 1,255,136 | ||||||||
1,127,000 | CC Holdings GS V LLC / Crown Castle GS III Corp. | 3.849 | 4/15/2023 | 1,183,317 | ||||||||
100,000 | Crown Castle International Corp. | 5.250 | 1/15/2023 | 108,969 | ||||||||
1,039,000 | ERP Operating LP | 4.625 | 12/15/2021 | 1,087,234 | ||||||||
1,042,000 | ERP Operating LP | 3.000 | 4/15/2023 | 1,072,313 | ||||||||
1,242,000 | Kimco Realty Corp. | 3.400 | 11/1/2022 | 1,280,770 | ||||||||
100,000 | Kimco Realty Corp. | 2.700 | 3/1/2024 | 101,421 | ||||||||
1,127,000 | Prologis LP | 3.750 | 11/1/2025 | 1,222,874 | ||||||||
1,127,000 | Prologis LP | 4.250 | 8/15/2023 | 1,211,324 | ||||||||
1,114,000 | Realty Income Corp. | 3.000 | 1/15/2027 | 1,146,046 | ||||||||
1,242,000 | Simon Property Group LP | 2.500 | 7/15/2021 | 1,252,590 | ||||||||
230,000 | Simon Property Group LP | 2.750 | 2/1/2023 | 234,838 | ||||||||
1,242,000 | Simon Property Group LP | 3.750 | 2/1/2024 | 1,321,134 | ||||||||
1,127,000 | Ventas Realty LP | 3.750 | 5/1/2024 | 1,187,072 | ||||||||
1,242,000 | Ventas Realty LP | 3.500 | 2/1/2025 | 1,294,336 | ||||||||
10,000 | Ventas Realty LP | 4.125 | 1/15/2026 | 10,764 | ||||||||
1,242,000 | Ventas Realty LP | 3.250 | 10/15/2026 | 1,279,034 | ||||||||
1,127,000 | Welltower, Inc. | 4.500 | 1/15/2024 | 1,218,068 | ||||||||
1,242,000 | Welltower, Inc. | 4.000 | 6/1/2025 | 1,336,165 | ||||||||
21,722,079 | ||||||||||||
REFINING & MARKETING - 2.7% | ||||||||||||
1,152,000 | Marathon Petroleum Corp. | 3.625 | 9/15/2024 | 1,208,347 | ||||||||
1,227,000 | Phillips 66 | 4.300 | 4/1/2022 | 1,291,258 | ||||||||
1,242,000 | Valero Energy Corp. | 3.400 | 9/15/2026 | 1,289,812 | ||||||||
3,789,417 | ||||||||||||
See accompanying notes to financial statements.
41
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||
RETAIL - CONSUMER DISCRETIONARY - 10.8% | ||||||||||||
970,000 | AutoZone, Inc. | 4.000 | 11/15/2020 | $ | 983,381 | |||||||
150,000 | AutoZone, Inc. | 2.500 | 4/15/2021 | 150,738 | ||||||||
1,152,000 | AutoZone, Inc. | 3.125 | 7/15/2023 | 1,185,864 | ||||||||
1,202,000 | AutoZone, Inc. | 3.125 | 4/21/2026 | 1,239,942 | ||||||||
1,242,000 | AutoZone, Inc. | 3.750 | 6/1/2027 | 1,329,822 | ||||||||
1,204,000 | Lowe’s Companies, Inc. | 4.625 | 4/15/2020 | 1,206,095 | ||||||||
1,242,000 | Lowe’s Companies, Inc. | 3.750 | 4/15/2021 | 1,267,373 | ||||||||
1,242,000 | Lowe’s Companies, Inc. | 3.800 | 11/15/2021 | 1,279,287 | ||||||||
1,127,000 | Lowe’s Companies, Inc. | 3.120 | 4/15/2022 | 1,155,543 | ||||||||
1,242,000 | Lowe’s Companies, Inc. | 3.125 | 9/15/2024 | 1,291,607 | ||||||||
145,000 | Lowe’s Companies, Inc. | 3.375 | 9/15/2025 | 152,765 | ||||||||
1,222,000 | Lowe’s Companies, Inc. | 2.500 | 4/15/2026 | 1,227,648 | ||||||||
1,265,000 | Lowe’s Companies, Inc. | 3.100 | 5/3/2027 | 1,314,519 | ||||||||
1,242,000 | O’Reilly Automotive, Inc. | 4.875 | 1/14/2021 | 1,271,671 | ||||||||
15,056,255 | ||||||||||||
RETAIL - CONSUMER STAPLES - 3.7% | ||||||||||||
1,242,000 | Sysco Corp. | 2.600 | 6/12/2022 | 1,254,712 | ||||||||
1,127,000 | Sysco Corp. | 3.750 | 10/1/2025 | 1,212,252 | ||||||||
1,247,000 | Sysco Corp. | 3.300 | 7/15/2026 | 1,313,682 | ||||||||
1,242,000 | Sysco Corp. | 3.250 | 7/15/2027 | 1,301,774 | ||||||||
5,082,420 | ||||||||||||
SEMICONDUCTORS - 3.6% | ||||||||||||
1,242,000 | Analog Devices, Inc. | 3.900 | 12/15/2025 | 1,340,857 | ||||||||
1,009,000 | Broadcom Corp. | 2.375 | 1/15/2020 | 1,009,172 | ||||||||
1,265,000 | Broadcom Corp. | 3.875 | 1/15/2027 | 1,292,441 | ||||||||
1,242,000 | Lam Research Corp. | 3.800 | 3/15/2025 | 1,325,212 | ||||||||
4,967,682 | ||||||||||||
UTILITIES - 10.1% | ||||||||||||
966,000 | CenterPoint Energy Resources Corp. | 4.500 | 1/15/2021 | 986,020 | ||||||||
618,000 | Consolidated Edison Co. | 4.000 | 12/1/2028 | 690,467 | ||||||||
1,100,000 | Dominion Energy, Inc. + | 2.579 | 7/1/2020 | 1,102,770 | ||||||||
1,152,000 | Dominion Energy, Inc. | 3.900 | 10/1/2025 | 1,234,119 | ||||||||
70,000 | Kentucky Utilities Co. | 3.300 | 10/1/2025 | 73,556 | ||||||||
1,242,000 | NiSource Finance Corp. | 3.490 | 5/15/2027 | 1,303,178 | ||||||||
1,204,000 | NSTAR Electric Co. | 2.375 | 10/15/2022 | 1,217,534 | ||||||||
1,242,000 | PPL Capital Funding, Inc. | 4.200 | 6/15/2022 | 1,295,142 | ||||||||
1,242,000 | PPL Capital Funding, Inc. | 3.500 | 12/1/2022 | 1,282,241 | ||||||||
1,012,000 | PPL Electric Utilities Corp. | 3.000 | 9/15/2021 | 1,030,598 | ||||||||
10,000 | PPL Electric Utilities Corp. | 2.500 | 9/1/2022 | 10,109 | ||||||||
1,242,000 | Public Service Co of Colorado | 3.200 | 11/15/2020 | 1,249,140 | ||||||||
See accompanying notes to financial statements.
42
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||
UTILITIES (continued) - 10.1% | ||||||||||||
1,242,000 | Virginia Electric & Power Co. | 2.750 | 3/15/2023 | $ | 1,267,104 | |||||||
1,152,000 | WEC Energy Group, Inc. | 3.550 | 6/15/2025 | 1,222,933 | ||||||||
13,964,911 | ||||||||||||
TOTAL CORPORATE BONDS (Cost $132,244,563) | 136,185,510 | |||||||||||
TOTAL INVESTMENTS - 98.2% (Cost - $132,244,563) | $ | 136,185,510 | ||||||||||
OTHER ASSETS LESS LIABILITIES - 1.8% | 2,537,108 | |||||||||||
NET ASSETS - 100.0% | $ | 138,722,618 | ||||||||||
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, 2019. |
See accompanying notes to financial statements.
43
Inspire 100 ETF |
PORTFOLIO OF INVESTMENTS |
November 30, 2019 |
Shares | Value | |||||||
COMMON STOCKS - 99.1% | ||||||||
AEROSPACE & DEFENSE - 1.1% | ||||||||
5,040 | Harris Corp. | $ | 1,013,494 | |||||
AUTOMOTIVE - 2.1% | ||||||||
5,670 | Aptiv PLC | 532,300 | ||||||
4,347 | Tesla, Inc. * ^ | 1,434,249 | ||||||
1,966,549 | ||||||||
BANKING - 0.3% | ||||||||
1,197 | SVB Financial Group * | 277,381 | ||||||
BIOTECHNOLOGY & PHARMACEUTICAL - 4.8% | ||||||||
5,859 | Alexion Pharmaceuticals, Inc. * | 667,574 | ||||||
2,520 | Regeneron Pharmaceuticals, Inc. * | 929,880 | ||||||
6,615 | Vertex Pharmaceuticals, Inc. * | 1,466,876 | ||||||
11,466 | Zoetis, Inc. | 1,381,882 | ||||||
4,446,212 | ||||||||
CHEMICALS - 0.4% | ||||||||
2,520 | International Flavors & Fragrances, Inc. ^ | 355,900 | ||||||
COMMERCIAL SERVICES - 2.0% | ||||||||
2,331 | Cintas Corp. | 599,207 | ||||||
6,930 | Ecolab, Inc. | 1,293,623 | ||||||
1,892,830 | ||||||||
CONSTRUCTION MATERIALS - 0.9% | ||||||||
1,386 | Martin Marietta Materials, Inc. | 372,002 | ||||||
3,151 | Vulcan Materials Co. | 447,032 | ||||||
819,034 | ||||||||
CONSUMER PRODUCTS - 1.8% | ||||||||
35,028 | Keurig Dr Pepper, Inc. | 1,083,766 | ||||||
3,213 | McCormick & Co., Inc. | 543,800 | ||||||
1,627,566 | ||||||||
CONTAINERS & PACKAGING - 0.8% | ||||||||
9,387 | International Paper Co. | 434,994 | ||||||
6,426 | WestRock Co. | 259,161 | ||||||
694,155 | ||||||||
DISTRIBUTORS - CONSUMER STAPLES - 1.1% | ||||||||
13,104 | Sysco Corp. | 1,055,527 | ||||||
ELECTRICAL EQUIPMENT - 9.7% | ||||||||
5,670 | AMETEK, Inc. | 561,387 | ||||||
7,711 | Amphenol Corp. | 801,944 | ||||||
10,143 | Eaton Corp PLC | 938,228 | ||||||
See accompanying notes to financial statements.
44
Inspire 100 ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
ELECTRICAL EQUIPMENT (continued) - 9.7% | ||||||||
15,246 | Emerson Electric Co. | $ | 1,126,070 | |||||
8,694 | Fortive Corp. | 627,446 | ||||||
18,333 | Honeywell International, Inc. | 3,273,357 | ||||||
21,231 | Johnson Controls International PLC | 909,324 | ||||||
8,505 | TE Connectivity Ltd. | 788,499 | ||||||
9,026,255 | ||||||||
HARDWARE - 1.7% | ||||||||
4,915 | Garmin Ltd. | 480,146 | ||||||
6,048 | NetApp, Inc. | 366,448 | ||||||
6,867 | Seagate Technology PLC | 409,823 | ||||||
7,245 | Western Digital Corp. | 364,641 | ||||||
1,621,058 | ||||||||
HEALTHCARE FACILITIES & SERVICES - 2.2% | ||||||||
5,355 | AmerisourceBergen Corp. | 470,758 | ||||||
10,477 | Centene Corp. * | 633,544 | ||||||
3,843 | Henry Schein, Inc. * | 264,783 | ||||||
4,662 | IQVIA Holdings, Inc. * | 680,559 | ||||||
2,049,644 | ||||||||
HOME & OFFICE PRODUCTS - 0.6% | ||||||||
3,654 | Stanley Black & Decker, Inc. | 576,382 | ||||||
INDUSTRIAL SERVICES - 0.3% | ||||||||
2,016 | United Rentals, Inc. * | 308,549 | ||||||
INSTITUTIONAL FINANCIAL SERVICES - 0.5% | ||||||||
4,410 | Nasdaq, Inc. | 462,168 | ||||||
INSURANCE - 1.2% | ||||||||
19,467 | Aflac, Inc. | 1,067,570 | ||||||
IRON & STEEL - 0.4% | ||||||||
7,434 | Nucor Corp. | 418,980 | ||||||
MACHINERY - 6.6% | ||||||||
14,553 | Caterpillar, Inc. | 2,106,256 | ||||||
7,660 | Deere & Co. | 1,287,263 | ||||||
3,654 | Dover Corp. | 407,348 | ||||||
7,812 | Illinois Tool Works, Inc. | 1,361,866 | ||||||
2,961 | Parker-Hannifin Corp. | 588,617 | ||||||
4,473 | Xylem, Inc. | 346,702 | ||||||
6,098,052 | ||||||||
See accompanying notes to financial statements.
45
Inspire 100 ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
MEDICAL EQUIPMENT & DEVICES - 6.4% | ||||||||
7,875 | Agilent Technologies, Inc. | $ | 636,064 | |||||
2,646 | Align Technology, Inc. * | 733,842 | ||||||
18,900 | Danaher Corp. | 2,759,022 | ||||||
3,654 | Illumina, Inc. * | 1,172,057 | ||||||
4,410 | Zimmer Biomet Holdings, Inc. | 640,685 | ||||||
5,941,670 | ||||||||
METALS & MINING - 0.9% | ||||||||
21,483 | Newmont Goldcorp Corp. | 824,947 | ||||||
OIL, GAS & COAL - 4.9% | ||||||||
6,363 | Cheniere Energy, Inc. * | 385,216 | ||||||
28,917 | ConocoPhillips | 1,733,285 | ||||||
21,861 | Halliburton Co. | 458,862 | ||||||
4,284 | Pioneer Natural Resources Co. | 547,667 | ||||||
34,776 | Schlumberger Ltd. | 1,258,891 | ||||||
10,143 | TechnipFMC PLC | 191,094 | ||||||
4,575,015 | ||||||||
REAL ESTATE - 9.4% | ||||||||
10,584 | American Tower Corp. | 2,265,294 | ||||||
10,017 | Crown Castle International Corp. | 1,338,872 | ||||||
2,079 | Equinix, Inc. | 1,178,481 | ||||||
8,946 | Equity Residential | 761,305 | ||||||
15,254 | Prologis, Inc. | 1,396,504 | ||||||
7,812 | Realty Income Corp. | 598,634 | ||||||
7,875 | Simon Property Group, Inc. | 1,190,779 | ||||||
8,729,869 | ||||||||
RETAIL - DISCRETIONARY - 2.5% | ||||||||
20,215 | Lowe’s Cos, Inc. | 2,371,422 | ||||||
SEMICONDUCTORS - 9.2% | ||||||||
28,035 | Advanced Micro Devices, Inc. * | 1,097,570 | ||||||
9,000 | Analog Devices, Inc. | 1,016,550 | ||||||
25,326 | Applied Materials, Inc. | 1,466,375 | ||||||
26,271 | Micron Technology, Inc. * | 1,248,135 | ||||||
14,490 | NVIDIA Corp. | 3,140,562 | ||||||
6,300 | Xilinx, Inc. | 584,514 | ||||||
8,553,706 | ||||||||
SOFTWARE - 2.7% | ||||||||
3,465 | Citrix Systems, Inc. | 390,886 | ||||||
2,205 | Palo Alto Networks, Inc. * | 501,020 | ||||||
3,717 | Synopsys, Inc. * | 524,246 | ||||||
6,111 | Workday, Inc. * | 1,094,602 | ||||||
2,510,754 | ||||||||
SPECIALTY FINANCE - 1.1% | ||||||||
8,442 | Fiserv, Inc. * | 981,298 | ||||||
See accompanying notes to financial statements.
46
Inspire 100 ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
TECHNOLOGY SERVICES - 4.1% | ||||||||
14,238 | Cognizant Technology Solutions Corp. | $ | 912,798 | |||||
2,898 | Equifax, Inc. | 404,677 | ||||||
2,709 | Gartner, Inc. * | 434,686 | ||||||
9,954 | IHS Markit Ltd.* | 723,158 | ||||||
9,009 | Paychex, Inc. | 775,855 | ||||||
4,032 | Verisk Analytics, Inc. | 594,639 | ||||||
3,845,813 | ||||||||
TRANSPORTATION & LOGISTICS - 5.1% | ||||||||
21,861 | CSX Corp. | 1,563,936 | ||||||
2,394 | JB Hunt Transport Services, Inc. | 276,794 | ||||||
16,695 | Union Pacific Corp. | 2,938,153 | ||||||
4,778,883 | ||||||||
TRANSPORTATION EQUIPMENT - 0.8% | ||||||||
8,694 | PACCAR, Inc. | 707,431 | ||||||
UTILITIES - 11.5% | ||||||||
5,752 | Alliant Energy Corp. | 304,856 | ||||||
12,348 | American Electric Power Co., Inc. | 1,127,990 | ||||||
4,473 | American Water Works Co., Inc. | 541,367 | ||||||
12,222 | CenterPoint Energy, Inc. | 300,172 | ||||||
8,316 | Consolidated Edison, Inc. | 722,577 | ||||||
20,538 | Dominion Energy, Inc. | 1,706,913 | ||||||
4,599 | DTE Energy Co. | 574,599 | ||||||
4,536 | Entergy Corp. | 527,945 | ||||||
8,064 | Eversource Energy | 666,409 | ||||||
11,726 | NextEra Energy, Inc. | 2,741,773 | ||||||
13,041 | Public Service Enterprise Group, Inc. | 773,462 | ||||||
7,686 | WEC Energy Group, Inc. | 681,364 | ||||||
10,669,427 | ||||||||
WASTE & ENVIRONMENT SERVICES & EQUIPMENT - 2.0% | ||||||||
7,686 | Republic Services, Inc. | 681,364 | ||||||
10,458 | Waste Management, Inc. | 1,180,813 | ||||||
1,862,177 | ||||||||
TOTAL COMMON STOCKS (Cost $81,676,946) | 92,129,718 | |||||||
COLLATERAL FOR SECURITIES LOANED - 1.6% ^^ | ||||||||
MONEY MARKET FUNDS - 1.6% | ||||||||
308,792 | Fidelity Government Portfolio - Institutional Class, to yield 1.76% + | 308,792 | ||||||
1,235,167 | Goldman Sachs Financial Square Prime Obligations Fund - Institutional Class, to yield 1.57% + | 1,235,167 | ||||||
TOTAL MONEY MARKET FUNDS(Cost $1,543,959) | 1,543,959 | |||||||
TOTAL INVESTMENTS - 100.7% (Cost $83,220,905) | $ | 93,673,677 | ||||||
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.7)% | (687,424 | ) | ||||||
NET ASSETS - 100.0% | $ | 92,986,253 | ||||||
* | Non-Income producing security. |
^ | All or a portion of this security is segregated as collateral for securities on loan as of November 30, 2019. The total value of securities on loan as of November 30, 2019 is $1,508,094. (Note 8) |
^^ | These securities were purchased with cash collateral held from securities on loan. The total value of such securities as November 30, 2019 is $1,543,959. (Note 8) |
+ | Money market fund; interest rate reflects seven-day effective yield on November 30, 2019. |
PLC - Public Limited Company
See accompanying notes to financial statements.
47
Inspire International ESG ETF |
PORTFOLIO OF INVESTMENTS |
November 30, 2019 |
Shares | Value | |||||||
COMMON STOCKS - 89.1% | ||||||||
APPAREL & TEXTILE PRODUCTS - 2.0% | ||||||||
2,286 | Capri Holdings Ltd. * | $ | 84,902 | |||||
999 | Cie Financiere Richemont SA | 76,133 | ||||||
279 | Swatch Group AG | 78,171 | ||||||
239,206 | ||||||||
ASSET MANAGEMENT - 2.1% | ||||||||
774 | Groupe Bruxelles Lambert SA | 78,599 | ||||||
29,556 | Melrose Industries PLC | 87,778 | ||||||
99 | Partners Group Holding AG | 83,531 | ||||||
249,908 | ||||||||
AUTOMOTIVE - 2.1% | ||||||||
675 | Cie Generale des Etablissements Michelin | 81,049 | ||||||
2,727 | Nokian Renkaat OYJ | 73,847 | ||||||
2,358 | Valeo SA | 92,974 | ||||||
247,870 | ||||||||
BANKING - 8.5% | ||||||||
9,801 | Bank Hapoalim BM | 79,168 | ||||||
10,575 | Bank Leumi Le-Israel | 76,827 | ||||||
12,843 | Commerzbank AG | 74,499 | ||||||
1,332 | Commonwealth Bank of Australia | 72,816 | ||||||
6,147 | Credit Agricole SA | 84,145 | ||||||
5,247 | Danske Bank A/S | 70,895 | ||||||
14,481 | Investec PLC | 82,211 | ||||||
1,152 | KBC Group NV | 84,011 | ||||||
828 | Macquarie Group Ltd. | 77,316 | ||||||
864 | mBank SA * | 82,224 | ||||||
64,671 | Metropolitan Bank & Trust Co. | 84,315 | ||||||
18,027 | Natixis SA | 75,392 | ||||||
3,177 | Raiffeisen Bank International AG | 74,648 | ||||||
1,018,467 | ||||||||
CHEMICALS - 7.0% | ||||||||
277,164 | AKR Corporindo Tbk PT | 66,810 | ||||||
837 | AKZO Nobel NV | 80,216 | ||||||
810 | Arkema SA | 84,006 | ||||||
1,503 | Brenntag AG | 80,225 | ||||||
1,260 | Croda International PLC | 81,165 | ||||||
27 | Givaudan SA | 79,405 | ||||||
1,845 | Imerys SA | 73,235 | ||||||
15,363 | I srael Chemicals Ltd. | 72,164 | ||||||
1,989 | Johnson Matthey PLC | 73,942 | ||||||
5,499 | K+S AG | 62,178 | ||||||
864 | LyondellBasell Industries NV | 79,955 | ||||||
833,301 | ||||||||
See accompanying notes to financial statements.
48
Inspire International ESG ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
COMMERCIAL SERVICES - 3.4% | ||||||||
3,024 | Bureau Veritas SA | $ | 79,222 | |||||
1,530 | Edenred | 75,998 | ||||||
31,122 | G4S PLC | 84,176 | ||||||
1,089 | Intertek Group PLC | 77,700 | ||||||
1,494 | Randstad Holding NV | 87,076 | ||||||
404,172 | ||||||||
CONSTRUCTION MATERIALS - 1.4% | ||||||||
4,437 | James Hardie Industries PLC - ADR | 86,914 | ||||||
1,494 | LafargeHolcim Ltd. | 77,081 | ||||||
163,995 | ||||||||
CONSUMER PRODUCTS - 2.0% | ||||||||
2,565 | Associated British Foods PLC | 85,235 | ||||||
8,091 | Orkla ASA | 78,418 | ||||||
10,440 | Pioneer Foods Group Ltd. | 76,770 | ||||||
240,423 | ||||||||
CONTAINERS & PACKAGING - 1.4% | ||||||||
7,704 | AMCOR PLC - ADR | 79,468 | ||||||
9,666 | Brambles Ltd. | 82,053 | ||||||
161,521 | ||||||||
DISTRIBUTORS - CONSUMER STAPLES - 0.7% | ||||||||
2,862 | Bunzl PLC | 78,593 | ||||||
ELECTRICAL EQUIPMENT - 4.8% | ||||||||
3,753 | ABB Ltd. | 82,132 | ||||||
729 | Allegion PLC | 87,502 | ||||||
909 | Eaton Corp PLC | 84,083 | ||||||
1,710 | Johnson Controls International PLC | 73,239 | ||||||
1,314 | Kone OYJ | 82,322 | ||||||
3,375 | Prysmian SpA | 76,993 | ||||||
324 | Schindler Holding AG | 80,826 | ||||||
567,097 | ||||||||
ENGINEERING & CONSTRUCTION SERVICES - 2.0% | ||||||||
3,456 | Boskalis Westminster | 80,823 | ||||||
6,354 | LendLease Group | 82,991 | ||||||
684 | Vinci SA | 74,649 | ||||||
238,463 | ||||||||
FOREST & PAPER PRODUCTS - 0.7% | ||||||||
2,619 | UPM-Kymmene OYJ | 87,555 | ||||||
GAMING, LODGING, & RESTAURANTS - 0.7% | ||||||||
1,350 | Whitbread PLC | 80,344 | ||||||
HARDWARE - 1.4% | ||||||||
1,440 | Seagate Technology PLC | 85,939 | ||||||
8,892 | Telefonaktiebolaget LM Ericsson | 80,168 | ||||||
166,107 | ||||||||
See accompanying notes to financial statements.
49
Inspire International ESG ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
HEALTHCARE FACILITIES & SERVICES - 0.7% | ||||||||
1,674 | Ramsay Health Care Ltd. | $ | 82,635 | |||||
HOME & OFFICE PRODUCTS - 1.5% | ||||||||
153 | Geberit AG | 82,184 | ||||||
2,817 | Persimmon PLC | 93,208 | ||||||
175,392 | ||||||||
INDUSTRIAL SERVICES - 0.7% | ||||||||
6,804 | Rexel SA | 83,086 | ||||||
INSTITUTIONAL FINANCIAL SERVICES - 0.6% | ||||||||
810 | London Stock Exchange Group PLC | 72,000 | ||||||
INSURANCE - 4.5% | ||||||||
19,980 | Direct Line Insurance Group PLC | 78,928 | ||||||
3,609 | Gjensidige Forsikring ASA | 67,970 | ||||||
13,617 | Insurance Australia Group Ltd. | 72,671 | ||||||
24,192 | Legal & General Group PLC | 87,900 | ||||||
8,595 | QBE Insurance Group Ltd. | 73,717 | ||||||
11,376 | RSA Insurance Group PLC | 81,138 | ||||||
1,800 | Sampo OYJ | 72,838 | ||||||
535,162 | ||||||||
IRON & STEEL - 2.7% | ||||||||
3,249 | Anglo American PLC | 85,165 | ||||||
3,474 | BHP GROUP PLC | 76,841 | ||||||
12,492 | Fortescue Metals Group Ltd. | 82,215 | ||||||
1,440 | Rio Tinto PLC | 78,259 | ||||||
322,480 | ||||||||
MACHINERY - 2.3% | ||||||||
3,789 | Alfa Laval AB | 93,259 | ||||||
6,219 | IMI PLC | 90,176 | ||||||
4,752 | Sandvik AB | 86,455 | ||||||
269,890 | ||||||||
MEDIA - 1.2% | ||||||||
468 | Naspers Ltd. | 66,908 | ||||||
2,331 | Trip.com Group Ltd. * - ADR | 77,482 | ||||||
144,390 | ||||||||
MEDICAL EQUIPMENT & DEVICES - 2.5% | ||||||||
612 | Coloplast A/S | 72,359 | ||||||
2,691 | Demant A/S * | 82,401 | ||||||
504 | EssilorLuxottica SA | 78,355 | ||||||
3,060 | Smith & Nephew PLC | 68,515 | ||||||
301,630 | ||||||||
See accompanying notes to financial statements.
50
Inspire International ESG ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
METALS & MINING - 3.6% | ||||||||
6,876 | Antofagasta PLC | $ | 77,201 | |||||
3,087 | Boliden AB | 79,657 | ||||||
7,992 | Fresnillo PLC | 59,710 | ||||||
31,122 | Grupo Mexico SAB de CV | 81,820 | ||||||
2,952 | Newcrest Mining Ltd. | 61,420 | ||||||
20,430 | Norsk Hydro ASA | 72,318 | ||||||
432,126 | ||||||||
OIL, GAS & COAL - 3.2% | ||||||||
809,010 | Adaro Energy Tbk PT | 70,548 | ||||||
4,284 | Caltex Australia Ltd. | 100,144 | ||||||
4,815 | Eni SpA | 72,808 | ||||||
1,467 | Koninklijke Vopak NV | 78,272 | ||||||
3,114 | TechnipFMC PLC | 58,668 | ||||||
380,440 | ||||||||
PASSENGER TRANSPORTATION - 1.5% | ||||||||
5,274 | easyJet PLC | 91,277 | ||||||
1,143 | Ryanair Holdings PLC - ADR * | 95,235 | ||||||
186,512 | ||||||||
REAL ESTATE - 5.2% | ||||||||
4,311 | Ayala Corp. | 68,379 | ||||||
79,209 | Ayala Land, Inc. | 70,924 | ||||||
10,566 | British Land Co. PLC | 78,668 | ||||||
711 | Covivio | 78,709 | ||||||
7,668 | Goodman Group | 76,866 | ||||||
17,640 | GPT Group | 73,380 | ||||||
21,807 | Hammerson PLC | 83,832 | ||||||
7,164 | Land Securities Group PLC | 88,812 | ||||||
619,570 | ||||||||
RENEWABLE ENERGY - 0.7% | ||||||||
909 | Vestas Wind Systems A/S | 86,575 | ||||||
RETAIL - CONSUMER STAPLES - 1.9% | ||||||||
27,918 | J Sainsbury PLC | 77,388 | ||||||
29,889 | Wm Morrison Supermarkets PLC | 76,666 | ||||||
2,898 | Woolworths Ltd. | 77,938 | ||||||
231,992 | ||||||||
RETAIL - DISCRETIONARY - 3.4% | ||||||||
2,502 | JD.com, Inc. * - ADR | 81,690 | ||||||
29,799 | Kingfisher PLC | 80,906 | ||||||
31,887 | Marks & Spencer Group PLC | 80,161 | ||||||
1,017 | Next PLC | 88,901 | ||||||
1,764 | Pandora A/S | 71,066 | ||||||
402,724 | ||||||||
See accompanying notes to financial statements.
51
Inspire International ESG ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2019 |
Shares | Value | |||||||
SEMICONDUCTORS - 2.1% | ||||||||
297 | ASML Holding NV | $ | 80,886 | |||||
711 | NXP Semiconductors NV | 82,177 | ||||||
3,897 | STMicroelectronics NV | 94,970 | ||||||
258,033 | ||||||||
SOFTWARE - 1.3% | ||||||||
567 | Atlassian Corp PLC * | 72,071 | ||||||
8,694 | Sage Group PLC | 84,770 | ||||||
156,841 | ||||||||
TECHNOLOGY SERVICES - 0.6% | ||||||||
2,331 | Experian PLC | 77,278 | ||||||
TELECOMMUNICATIONS - 1.3% | ||||||||
3,987 | Eutelsat Communications SA | 65,457 | ||||||
9,009 | Mobile TeleSystems PJSC - ADR | 85,045 | ||||||
150,502 | ||||||||
TRANSPORTATION & LOGISTICS - 4.7% | ||||||||
423 | Aeroports de Paris | 82,786 | ||||||
10,989 | Babcock International Group PLC | 83,921 | ||||||
882 | Fraport AG Frankfurt Airport Services Worldwide | 75,193 | ||||||
4,743 | Grupo Aeroportuario del Sureste SAB de CV | 81,530 | ||||||
504 | Kuehne + Nagel International AG | 82,004 | ||||||
28,089 | Royal Mail PLC | 75,755 | ||||||
5,274 | Volvo AB | 81,489 | ||||||
562,678 | ||||||||
UTILITIES - 1.9% | ||||||||
71,082 | Aboitiz Equity Ventures, Inc. | 68,474 | ||||||
5,787 | AGL Energy Ltd. | 79,891 | ||||||
13,788 | Origin Energy Ltd. | 81,137 | ||||||
229,502 | ||||||||
WASTE & ENVIRONMENT SERVICES & EQUIPMENT - 0.8% | ||||||||
2,025 | Pentair PLC | 89,809 | ||||||
TOTAL COMMON STOCKS (Cost $9,760,444) | 10,628,269 | |||||||
TOTAL INVESTMENTS - 89.1% (Cost $9,760,444) | $ | 10,628,269 | ||||||
OTHER ASSETS LESS LIABILITIES - 10.9% | 1,301,779 | |||||||
NET ASSETS - 100.0% | $ | 11,930,048 | ||||||
* | Non-Income producing security. |
AB - Aktiebolag
ADR - American Depositary Receipt
AG - Aktiengesellschaft
ASA - Allmennaksjeselskap
A/S - Aktieselskab
NV - Naamloze vennootschap
OYJ - Osakeyhtiö
PJSC - Public joint stock company
PLC - Public Limited Company
PT - Perseroan Terbatas
SA - Société anonyme
SAB de CV - Sociedad Anonima Bursatil de Capital Variable
SpA - Societa per azioni
See accompanying notes to financial statements.
52
The Inspire ETFs |
STATEMENTS OF ASSETS AND LIABILITIES |
November 30, 2019 |
Inspire Global Hope | Inspire Small/Mid | Inspire Corporate | Inspire International | |||||||||||||||||
ETF | Cap Impact ETF | Bond Impact ETF | Inspire 100 ETF | ESG ETF | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Investment securities: | ||||||||||||||||||||
At cost | $ | 146,305,772 | $ | 96,510,435 | $ | 132,244,563 | $ | 83,220,905 | $ | 9,760,444 | ||||||||||
At value | $ | 159,114,766 | $ | 102,335,001 | $ | 136,185,510 | $ | 93,673,677 | $ | 10,628,269 | ||||||||||
Cash | 963,571 | 883,448 | 1,495,218 | 706,375 | 1,301,322 | |||||||||||||||
Foreign currencies (Cost $370,034, $0, $0, $0, and $18,470, respectively) | 371,890 | — | — | — | 18,526 | |||||||||||||||
Dividends and interest receivable | 296,646 | 124,072 | 1,200,264 | 162,836 | 11,104 | |||||||||||||||
Receivable for Fund shares sold | 2,469,797 | — | — | — | — | |||||||||||||||
Receivable for investments sold | — | — | 145,284 | — | — | |||||||||||||||
Prepaid expenses | 6,539 | 3,409 | 5,133 | 2,356 | — | |||||||||||||||
TOTAL ASSETS | 163,223,209 | 103,345,930 | 139,031,409 | 94,545,244 | 11,959,221 | |||||||||||||||
LIABILITIES | ||||||||||||||||||||
Payable for investments purchased | 2,469,797 | — | — | — | — | |||||||||||||||
Securities lending collateral payable | — | 4,103,999 | — | 1,543,959 | — | |||||||||||||||
Distributions payable | — | — | 234,360 | — | — | |||||||||||||||
Investment advisory fees payable | 38,286 | 1,711 | 34,187 | 5,799 | 4,404 | |||||||||||||||
Payable to related parties | 16,668 | 11,152 | 14,630 | 7,016 | 10,445 | |||||||||||||||
Accrued expenses and other liabilities | 25,478 | 2,975 | 25,614 | 2,217 | 14,324 | |||||||||||||||
TOTAL LIABILITIES | 2,550,229 | 4,119,837 | 308,791 | 1,558,991 | 29,173 | |||||||||||||||
NET ASSETS | $ | 160,672,980 | $ | 99,226,093 | $ | 138,722,618 | $ | 92,986,253 | $ | 11,930,048 | ||||||||||
Net Assets Consist Of: | ||||||||||||||||||||
Paid in capital | $ | 148,252,961 | $ | 94,208,132 | $ | 134,331,611 | $ | 84,106,005 | $ | 11,081,680 | ||||||||||
Accumulated earnings | 12,420,019 | 5,017,961 | 4,391,007 | 8,880,248 | 848,368 | |||||||||||||||
NET ASSETS | $ | 160,672,980 | $ | 99,226,093 | $ | 138,722,618 | $ | 92,986,253 | $ | 11,930,048 | ||||||||||
Net Asset Value Per Share: | ||||||||||||||||||||
Net Assets | $ | 160,672,980 | $ | 99,226,093 | $ | 138,722,618 | $ | 92,986,253 | $ | 11,930,048 | ||||||||||
Shares of beneficial interest outstanding ($0 par value, unlimited shares authorized) | 5,500,000 | 3,600,000 | 5,400,000 | 3,150,000 | 450,000 | |||||||||||||||
Net asset value, offering and redemption price per share (Net Assets ÷ Shares Outstanding) | $ | 29.21 | $ | 27.56 | $ | 25.69 | $ | 29.52 | $ | 26.51 |
See accompanying notes to financial statements.
53
The Inspire ETFs |
STATEMENTS OF OPERATIONS |
For the Year and Period Ended November 30, 2019 |
Inspire Global Hope | Inspire Small/Mid | Inspire Corporate | Inspire International | |||||||||||||||||
ETF | Cap Impact ETF | Bond Impact ETF | Inspire 100 ETF | ESG ETF* | ||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||
Dividends | $ | 4,202,916 | $ | 1,389,559 | $ | — | $ | 1,176,323 | $ | 25,394 | ||||||||||
Interest | 20,523 | 16,304 | 3,223,235 | — | — | |||||||||||||||
Securities lending income | 2,301 | 27,478 | — | 955 | — | |||||||||||||||
Less: Foreign withholding taxes | (286,917 | ) | (16,793 | ) | — | — | (1,786 | ) | ||||||||||||
TOTAL INVESTMENT INCOME | 3,938,823 | 1,416,548 | 3,223,235 | 1,177,278 | 23,608 | |||||||||||||||
EXPENSES | ||||||||||||||||||||
Investment advisory fees | 397,542 | 230,387 | 310,796 | 181,610 | 8,154 | |||||||||||||||
Administrative services | 91,087 | 65,825 | 80,136 | 34,342 | 8,188 | |||||||||||||||
Custodian fees | 68,503 | 96,861 | 17,190 | 22,914 | 5,752 | |||||||||||||||
Printing and postage expenses | 33,402 | 17,896 | 18,184 | 14,660 | 3,000 | |||||||||||||||
Transfer agent fees | 18,183 | 13,602 | 13,657 | 11,645 | 2,340 | |||||||||||||||
Professional fees | 16,472 | 14,215 | 14,833 | 14,865 | 2,256 | |||||||||||||||
Legal fees | 15,782 | 14,166 | 12,703 | 22,408 | 12,105 | |||||||||||||||
Audit fees | 14,933 | 15,269 | 14,857 | 13,573 | — | |||||||||||||||
Trustees fees and expenses | 9,347 | 3,816 | 8,461 | 7,685 | 2,507 | |||||||||||||||
Insurance expense | 4,099 | 2,234 | 1,999 | 1,402 | 167 | |||||||||||||||
Other Expenses | 23,280 | 17,506 | 30,304 | 18,600 | 501 | |||||||||||||||
TOTAL EXPENSES | 692,630 | 491,777 | 523,120 | 343,704 | 44,970 | |||||||||||||||
Plus: Recapture of fees waived/expenses reimbursed by the Adviser | 29,470 | — | 83,103 | — | — | |||||||||||||||
Less: Fees waived/expenses reimbursed by the Adviser | — | (28,449 | ) | — | (131,308 | ) | — | |||||||||||||
NET EXPENSES | 722,100 | 463,328 | 606,223 | 212,396 | 44,970 | |||||||||||||||
NET INVESTMENT INCOME/(LOSS) | 3,216,723 | 953,220 | 2,617,012 | 964,882 | (21,362 | ) | ||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||
In-kind redemptions | (542,463 | ) | (1,212,022 | ) | 132,305 | — | — | |||||||||||||
Investments | (457,531 | ) | (956,681 | ) | 320,807 | (1,898,818 | ) | — | ||||||||||||
Foreign currency transactions | 1,437 | 16 | — | — | (7,450 | ) | ||||||||||||||
(998,557 | ) | (2,168,687 | ) | 453,112 | (1,898,818 | ) | (7,450 | ) | ||||||||||||
Net change in unrealized appreciation on: | ||||||||||||||||||||
Investments | 15,158,741 | 7,293,332 | 5,123,773 | 11,262,989 | 867,825 | |||||||||||||||
Foreign currency translations | 1,430 | — | — | — | 65 | |||||||||||||||
15,160,171 | 7,293,332 | 5,123,773 | 11,262,989 | 867,890 | ||||||||||||||||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS | 14,161,614 | 5,124,645 | 5,576,885 | 9,364,171 | 860,440 | |||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 17,378,337 | $ | 6,077,865 | $ | 8,193,897 | $ | 10,329,053 | $ | 839,078 |
* | The Inspire International ESG ETF commenced operations on September 30, 2019. |
See accompanying notes to financial statements.
54
Inspire Global Hope ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Year Ended | Year Ended | |||||||
November 30, 2019 | November 30, 2018 | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 3,216,723 | $ | 1,274,524 | ||||
Net realized gain (loss) on investments and foreign currency transactions | (998,557 | ) | 845,407 | |||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations | 15,160,171 | (6,240,088 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 17,378,337 | (4,120,157 | ) | |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid: | (3,508,625 | ) | (1,603,210 | ) | ||||
Net decrease in net assets resulting from distributions to shareholders | (3,508,625 | ) | (1,603,210 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 68,599,110 | 43,458,500 | ||||||
Cost of shares redeemed | (9,566,081 | ) | (2,894,337 | ) | ||||
Net increase in net assets resulting from shares of beneficial interest | 59,033,029 | 40,564,163 | ||||||
TOTAL INCREASE IN NET ASSETS | 72,902,741 | 34,840,796 | ||||||
NET ASSETS | ||||||||
Beginning of Year | 87,770,239 | 52,929,443 | ||||||
End of Year | $ | 160,672,980 | $ | 87,770,239 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 2,500,000 | 1,550,000 | ||||||
Shares Redeemed | (350,000 | ) | (100,000 | ) | ||||
Net increase in shares of beneficial interest outstanding | 2,150,000 | 1,450,000 |
See accompanying notes to financial statements.
55
Inspire Small/Mid Cap Impact ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Year Ended | Year Ended | |||||||
November 30, 2019 | November 30, 2018 | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 953,220 | $ | 452,751 | ||||
Net realized gain (loss) on investments and foreign currency transactions | (2,168,687 | ) | 2,124,977 | |||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations | 7,293,332 | (2,983,608 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 6,077,865 | (405,880 | ) | |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid: | (1,764,670 | ) | (747,845 | ) | ||||
Net decrease in net assets resulting from distributions to shareholders | (1,764,670 | ) | (747,845 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 60,912,677 | 31,727,672 | ||||||
Cost of shares redeemed | (16,788,007 | ) | (9,284,905 | ) | ||||
Net increase in net assets resulting from shares of beneficial interest | 44,124,670 | 22,442,767 | ||||||
TOTAL INCREASE IN NET ASSETS | 48,437,865 | 21,289,042 | ||||||
NET ASSETS | ||||||||
Beginning of Year | 50,788,228 | 29,499,186 | ||||||
End of Year | $ | 99,226,093 | $ | 50,788,228 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 2,350,000 | 1,150,000 | ||||||
Shares Redeemed | (650,000 | ) | (350,000 | ) | ||||
Net increase in shares of beneficial interest outstanding | 1,700,000 | 800,000 |
See accompanying notes to financial statements.
56
Inspire Corporate Bond Impact ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Year Ended | Year Ended | |||||||
November 30, 2019 | November 30, 2018 | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 2,617,012 | $ | 904,032 | ||||
Net realized gain (loss) on investments | 453,112 | (58,526 | ) | |||||
Net change in unrealized appreciation (depreciation) on investments | 5,123,773 | (1,046,294 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 8,193,897 | (200,788 | ) | |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid: | (2,592,260 | ) | (905,300 | ) | ||||
Net decrease in net assets resulting from distributions to shareholders | (2,592,260 | ) | (905,300 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 77,661,864 | 46,465,856 | ||||||
Cost of shares redeemed | (2,571,518 | ) | (9,782,462 | ) | ||||
Net increase in net assets resulting from shares of beneficial interest | 75,090,346 | 36,683,394 | ||||||
TOTAL INCREASE IN NET ASSETS | 80,691,983 | 35,577,306 | ||||||
NET ASSETS | ||||||||
Beginning of Year | 58,030,635 | 22,453,329 | ||||||
End of Year | $ | 138,722,618 | $ | 58,030,635 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 3,100,000 | 1,900,000 | ||||||
Shares Redeemed | (100,000 | ) | (400,000 | ) | ||||
Net increase in shares of beneficial interest outstanding | 3,000,000 | 1,500,000 |
See accompanying notes to financial statements.
57
Inspire 100 ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Year Ended | Year Ended | |||||||
November 30, 2019 | November 30, 2018 | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 964,882 | $ | 546,989 | ||||
Net realized gain (loss) on investments | (1,898,818 | ) | 74,631 | |||||
Net change in unrealized appreciation (depreciation) on investments | 11,262,989 | (941,689 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 10,329,053 | (320,069 | ) | |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
From return of capital | — | (21,298 | ) | |||||
Total distributions paid: | (724,530 | ) | (427,227 | ) | ||||
Net decrease in net assets resulting from distributions to shareholders | (724,530 | ) | (448,525 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 44,297,144 | 34,755,898 | ||||||
Cost of shares redeemed | — | (1,326,126 | ) | |||||
Net increase in net assets resulting from shares of beneficial interest | 44,297,144 | 33,429,772 | ||||||
TOTAL INCREASE IN NET ASSETS | 53,901,667 | 32,661,178 | ||||||
NET ASSETS | ||||||||
Beginning of Year | 39,084,586 | 6,423,408 | ||||||
End of Year | $ | 92,986,253 | $ | 39,084,586 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 1,650,000 | 1,300,000 | ||||||
Shares Redeemed | — | (50,000 | ) | |||||
Net increase in shares of beneficial interest outstanding | 1,650,000 | 1,250,000 |
See accompanying notes to financial statements.
58
Inspire International ESG ETF |
STATEMENT OF CHANGES IN NET ASSETS |
Period Ended | ||||
November 30, 2019 (a) | ||||
FROM OPERATIONS | ||||
Net investment loss | $ | (21,362 | ) | |
Net realized loss on foreign currency transactions | (7,450 | ) | ||
Net change in unrealized appreciation on investments and foreign currency translations | 867,890 | |||
Net increase in net assets resulting from operations | 839,078 | |||
FROM SHARES OF BENEFICIAL INTEREST | ||||
Proceeds from shares sold | 11,090,970 | |||
Net increase in net assets resulting from shares of beneficial interest | 11,090,970 | |||
TOTAL INCREASE IN NET ASSETS | 11,930,048 | |||
NET ASSETS | ||||
Beginning of Period | — | |||
End of Period | $ | 11,930,048 | ||
SHARE ACTIVITY | ||||
Shares Sold | 450,000 | |||
Net increase in shares of beneficial interest outstanding | 450,000 |
(a) | The Inspire International ESG ETF commenced operations on September 30, 2019. |
See accompanying notes to financial statements.
59
Inspire Global Hope ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period |
Year Ended | Year Ended | Period Ended | ||||||||||
November 30, 2019 | November 30, 2018 | November 30, 2017 (1) | ||||||||||
Net asset value, beginning of period | $ | 26.20 | $ | 27.86 | $ | 25.00 | ||||||
Activity from investment operations: | ||||||||||||
Net investment income (2) | 0.67 | 0.48 | 0.36 | |||||||||
Net realized and unrealized gain (loss) on investments | 3.08 | (1.49 | ) | 2.78 | ||||||||
Total from investment operations | 3.75 | (1.01 | ) | 3.14 | ||||||||
Less distributions from: | ||||||||||||
Net investment income | (0.58 | ) | (0.49 | ) | (0.28 | ) | ||||||
Net realized gains | (0.16 | ) | (0.16 | ) | — | |||||||
Total distributions | (0.74 | ) | (0.65 | ) | (0.28 | ) | ||||||
Net asset value, end of period | $ | 29.21 | $ | 26.20 | $ | 27.86 | ||||||
Total return (6) | 14.60 | % | (3.74 | )% | 12.63 | % (4) | ||||||
Net assets, at end of period (000s) | $ | 160,673 | $ | 87,770 | $ | 52,929 | ||||||
Ratio of gross expenses to average net assets (3) | 0.52 | % (8) | 0.62 | % | 0.75 | % | ||||||
Ratio of net expenses to average net assets (3) | 0.54 | % (7) | 0.62 | % | 0.65 | % | ||||||
Ratio of net investment income to average net assets (3) | 2.42 | % | 1.71 | % | 1.80 | % | ||||||
Portfolio Turnover Rate (5) | 22 | % | 22 | % | 15 | % (4) |
(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. |
(7) | Represents the ratio of expenses to average net assets after adviser recapture of waived/reimbursement fees from prior periods. |
(8) | Represents the ratio of expenses to average net assets before adviser recapture of waived/reimbursement fees from prior periods. |
See accompanying notes to financial statements.
60
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 | Year Ended | Period Ended | ||||||||||
November 30, 2019 | November 30, 2018 | November 30, 2017 (1) | ||||||||||
Net asset value, beginning of period | $ | 26.73 | $ | 26.82 | $ | 25.00 | ||||||
Activity from investment operations: | ||||||||||||
Net investment income (2) | 0.32 | 0.30 | 0.20 | |||||||||
Net realized and unrealized gain on investments | 1.29 | 0.20 | (7) | 1.73 | ||||||||
Total from investment operations | 1.61 | 0.50 | 1.93 | |||||||||
Less distributions from: | ||||||||||||
Net investment income | (0.22 | ) | (0.21 | ) | (0.11 | ) | ||||||
Net realized gains | (0.56 | ) | (0.38 | ) | — | |||||||
Total distributions | (0.78 | ) | (0.59 | ) | (0.11 | ) | ||||||
Net asset value, end of period | $ | 27.56 | $ | 26.73 | $ | 26.82 | ||||||
Total return (6) | 6.42 | % | 1.89 | % | 7.75 | % (4) | ||||||
Net assets, at end of period (000s) | $ | 99,226 | $ | 50,788 | $ | 29,499 | ||||||
Ratio of gross expenses to average net assets (3) | 0.64 | % | 0.71 | % | 0.94 | % | ||||||
Ratio of net expenses to average net assets (3) | 0.60 | % | 0.62 | % | 0.65 | % | ||||||
Ratio of net investment income to average net assets (3) | 1.24 | % | 1.07 | % | 1.06 | % | ||||||
Portfolio Turnover Rate (5) | 42 | % | 24 | % | 16 | % (4) |
(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.
61
Inspire Corporate Bond Impact ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period |
Year Ended | Year Ended | Period Ended | ||||||||||
November 30, 2019 | November 30, 2018 | November 30, 2017 (1) | ||||||||||
Net asset value, beginning of period | $ | 24.18 | $ | 24.95 | $ | 25.00 | ||||||
Activity from investment operations: | ||||||||||||
Net investment income (2) | 0.64 | 0.56 | 0.18 | |||||||||
Net realized and unrealized gain (loss) on investments | 1.49 | (0.81 | ) | (0.09 | ) | |||||||
Total from investment operations | 2.13 | (0.25 | ) | 0.09 | ||||||||
Less distributions from: | ||||||||||||
Net investment income | (0.62 | ) | (0.52 | ) | (0.14 | ) | ||||||
Net realized gains | — | (0.00 | ) (7) | — | ||||||||
Total distributions | (0.62 | ) | (0.52 | ) | (0.14 | ) | ||||||
Net asset value, end of period | $ | 25.69 | $ | 24.18 | $ | 24.95 | ||||||
Total return (6) | 8.91 | % | (0.99 | )% | 0.37 | % (4) | ||||||
Net assets, at end of period (000s) | $ | 138,723 | $ | 58,031 | $ | 22,453 | ||||||
Ratio of gross expenses to average net assets (3) | 0.50 | % (9) | 0.68 | % | 1.51 | % | ||||||
Ratio of net expenses to average net assets (3) | 0.58 | % (8) | 0.62 | % | 0.65 | % | ||||||
Ratio of net investment income to average net assets (3) | 2.52 | % | 2.27 | % | 1.81 | % | ||||||
Portfolio Turnover Rate (5) | 18 | % | 5 | % | 6 | % (4) |
(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. |
(8) | Represents the ratio of expenses to average net assets after adviser recapture of waived/reimbursement fees from prior periods. |
(9) | Represents the ratio of expenses to average net assets before adviser recapture of waived/reimbursement fees from prior periods. |
See accompanying notes to financial statements.
62
Inspire 100 ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period |
Year Ended | Year Ended | Period Ended | ||||||||||
November 30, 2019 | November 30, 2018 | November 30, 2017 (1) | ||||||||||
Net asset value, beginning of period | $ | 26.06 | $ | 25.69 | $ | 25.00 | ||||||
Activity from investment operations: | ||||||||||||
Net investment income (2) | 0.43 | 0.61 | 0.05 | |||||||||
Net realized and unrealized gain on investments | 3.35 | 0.19 | (7) | 0.64 | ||||||||
Total from investment operations | 3.78 | 0.80 | 0.69 | |||||||||
Less distributions from: | ||||||||||||
Net investment income | (0.31 | ) | (0.42 | ) | — | |||||||
Net realized gains | (0.01 | ) | — | — | ||||||||
Return of capital | — | (0.01 | ) | — | ||||||||
Total distributions | (0.32 | ) | (0.43 | ) | — | |||||||
Net asset value, end of period | $ | 29.52 | $ | 26.06 | $ | 25.69 | ||||||
Total return (6) | 14.64 | % | 3.09 | % | 2.76 | % (4) | ||||||
Net assets, at end of period (000s) | $ | 92,986 | $ | 39,085 | $ | 6,423 | ||||||
Ratio of gross expenses to average net assets (3) | 0.57 | % | 0.84 | % | 3.78 | % | ||||||
Ratio of net expenses to average net assets (3) | 0.35 | % | 0.35 | % | 0.35 | % | ||||||
Ratio of net investment income to average net assets (3) | 1.59 | % | 2.27 | % | 2.41 | % | ||||||
Portfolio Turnover Rate (5) | 23 | % | 8 | % | 0 | % (4) |
(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.
63
Inspire International ESG ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout The Period |
Period Ended | ||||
November 30, 2019 (1) | ||||
Net asset value, beginning of period | $ | 25.00 | ||
Activity from investment operations: | ||||
Net investment loss (2) | (0.05 | ) | ||
Net realized and unrealized gain on investments | 1.56 | |||
Total from investment operations | 1.51 | |||
Net asset value, end of period | $ | 26.51 | ||
Total return (4)(6) | 6.04 | % | ||
Net assets, at end of period (000s) | $ | 11,930 | ||
Ratio of net expenses to average net assets (3) | 2.44 | % | ||
Ratio of net investment loss to average net assets (3) | (1.16 | )% | ||
Portfolio Turnover Rate (4)(5) | 0 | % |
(1) | The Inspire International ESG ETF commenced operations on September 30, 2019. |
(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.
64
The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS |
November 30, 2019 |
1. | ORGANIZATION |
The Inspire Global Hope ETF (“BLES”), Inspire Small/Mid Cap Impact ETF (“ISMD”), Inspire Corporate Bond Impact ETF (“IBD”), Inspire 100 ETF (“BIBL”), and Inspire International ESG ETF (“WWJD”) (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. WWJD’s investment objective seeks to replicate the investment results that generally correspond, before fees and expenses, to the performance of the Inspire Global Hope ex-US 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. WWJD commenced operations on September 30, 2019.
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 Standards Codification Topic 946 “Financial Services – Investment Companies” including FASB Accounting Standards 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
65
The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2019 |
purchase, may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value.
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. 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. 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.
66
The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2019 |
Securities Lending Risk –Securities lending involves exposure to certain risks, including operational risk (i.e., the risk of losses resulting from problems in the settlement and accounting process), “gap” risk (i.e., the risk of a mismatch between the return on cash collateral reinvestments and the fees a Fund has agreed to pay a borrower), and credit, legal, counterparty and market risk. In the event a borrower does not return a Fund’s securities as agreed, the Fund may experience losses if the proceeds received from liquidating the collateral do not at least equal the value of the loaned security at the time the collateral is liquidated plus the transaction costs incurred in purchasing replacement securities.
Fixed Income Risk – When a Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities owned by the Fund. In general, the market price of fixed income securities with longer maturities will increase or decrease more in response to changes in interest rates than shorter-term securities. Other risk factors include credit risk (the debtor may default), extension risk (an issuer may exercise its right to repay principal on a fixed rate obligation held by the Fund later than expected), and prepayment risk (the debtor may pay its obligation early, reducing the amount of interest payments). These risks could affect the value of a particular investment by each Fund, possibly causing the Fund’s share price and total return to be reduced and fluctuate more than other types of investments.
Foreign Securities Risk – Foreign companies are generally not subject to the same regulatory requirements of U.S. companies thereby resulting in less publicly available information about these companies. The lack of readily available public information may lead to inaccurate Inspire Impact Scores. Not all countries and jurisdictions monitor or regulate all environmental, social and governance (ESG) factors so that there may be no relevant information available for certain factors. In addition, foreign accounting, auditing and financial reporting standards generally differ from those applicable to U.S. companies.
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 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.
67
The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2019 |
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.
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, 2019 for the Funds’ assets measured at value:
Inspire Global Hope ETF | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 159,114,766 | $ | — | $ | — | $ | 159,114,766 | ||||||||
Total | $ | 159,114,766 | $ | — | $ | — | $ | 159,114,766 | ||||||||
Inspire Small/Mid Cap Impact ETF | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 98,231,002 | $ | — | $ | — | $ | 98,231,002 | ||||||||
Money Market Funds | 4,103,999 | — | — | 4,103,999 | ||||||||||||
Total | $ | 102,335,001 | $ | — | $ | — | $ | 102,335,001 | ||||||||
Inspire Corporate Bond Impact ETF | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Corporate Bonds | $ | — | $ | 136,185,510 | $ | — | $ | 136,185,510 | ||||||||
Total | $ | — | $ | 136,185,510 | $ | — | $ | 136,185,510 |
68
The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2019 |
Inspire 100 ETF | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 92,129,718 | $ | — | $ | — | $ | 92,129,718 | ||||||||
Money Market Funds | 1,543,959 | — | — | 1,543,959 | ||||||||||||
Total | $ | 93,673,677 | $ | — | $ | — | $ | 93,673,677 | ||||||||
Inspire International ESG ETF | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 10,628,269 | $ | — | $ | — | $ | 10,628,269 | ||||||||
Total | $ | 10,628,269 | $ | — | $ | — | $ | 10,628,269 |
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. Discounts are accreted and premiums are amortized on securities purchased over the lives of the respective securities. 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, BIBL, and WWJD, 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., 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 comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of their taxable income to 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 analyzed each Fund’s tax position 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 years ended November 30, 2017 – November 30, 2018, or expected to be taken in each Fund’s November 30, 2019 year-end tax returns. Each Fund identified its major tax jurisdictions as U.S. federal, Ohio (Nebraska in prior years) and foreign jurisdictions where the Fund makes significant investments. Each Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expenses, in the Statements of Operations. 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.
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2019 |
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.
Cash –The Funds consider their investments in an FDIC insured interest bearing savings account to be cash. The Funds maintain cash balances, which, at times, may exceed federally insured limits. The Funds maintain these balances with a high quality financial institution.
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.
3. | INVESTMENT TRANSACTIONS |
For the year or period ended November 30, 2019, 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 | $ | 32,285,965 | $ | 28,083,353 | ||||
Inspire Small/Mid Cap Impact ETF | $ | 34,777,664 | $ | 32,235,173 | ||||
Inspire Corporate Bond Impact ETF | $ | 28,111,475 | $ | 16,382,169 | ||||
Inspire 100 ETF | $ | 14,389,972 | $ | 13,874,090 | ||||
Inspire International ESG ETF | $ | 3,060,981 | $ | — |
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2019 |
For the year or period ended November 30, 2019, 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 | $ | 63,814,543 | $ | 8,855,671 | ||||
Inspire Small/Mid Cap Impact ETF | $ | 60,231,624 | $ | 16,643,380 | ||||
Inspire Corporate Bond Impact ETF | $ | 71,854,628 | $ | 2,397,874 | ||||
Inspire 100 ETF | $ | 43,825,524 | $ | — | ||||
Inspire International ESG ETF | $ | 6,699,463 | $ | — |
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 Funds’ 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 BLES, ISMD, IBD, and BIBL, and at an annual rate of 0.45% for WWJD. For the fiscal year or period ended November 30, 2019, the Adviser earned $397,542, $230,387, $310,796, $181,610, and $8,154 in advisory fees for BLES, ISMD, IBD, BIBL, and WWJD, respectively.
Pursuant to a written contract (the “Waiver Agreement”), the Adviser has agreed for BLES, ISMD, IBD and BIBL, at least until March 31, 2020, 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 (including for example option and swap fees and expenses), or extraordinary expenses such as litigation) will not exceed 0.61%, 0.60%, 0.61%, and 0.35% of average daily net assets for BLES, ISMD, IBD, and BIBL, respectively. WWJD currently does not have a Waiver Agreement in place.
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 waiver, 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, 2019, the Adviser waived fees and/or reimbursed expenses in the amount of $28,449 for ISMD and $131,308 for BIBL pursuant to the Waiver Agreement. For the year ended November 30, 2019, the Adviser recaptured $29,470 and $83,103 of previously waived fees for BLES and IBD, respectively.
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2019 |
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 | 11/30/2022 | ||||||||||
ISMD | $ | 51,103 | $ | 39,292 | $ | 28,449 | ||||||
BIBL | $ | 16,256 | $ | 117,184 | $ | 131,308 |
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.
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.
Effective February 1, 2019, NorthStar Financial Services Group, LLC, the parent company of GFS and its affiliated companies including Northern Lights Distributors, LLC (“NLD”) and Northern Lights Compliance Services, LLC (“NLCS”)(collectively, the “Gemini Companies”), sold its interest in the Gemini Companies to a third party private equity firm that contemporaneously acquired Ultimus Fund Solutions, LLC (an independent mutual fund administration firm) and its affiliates (collectively, the “Ultimus Companies”). As a result of these separate transactions, the Gemini Companies and the Ultimus Companies are now indirectly owned through a common parent entity, The Ultimus Group, LLC.
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 WWJD, 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
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2019 |
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 Fund 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%* | ||||||
Inspire International ESG ETF | $4,500 | 2.00%* |
* | The maximum Transaction Fee may be up to 2.00% of the amount invested. |
6. | DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL |
The tax character of fund distributions paid for the year or period ended November 30, 2019 and November 30, 2018 was as follows:
For the Year and Period Ended November 30, 2019: | ||||||||||||||||
Ordinary | Long-Term | Return | ||||||||||||||
Portfolio | Income | Capital Gains | Of Capital | Total | ||||||||||||
Inspire Global Hope ETF | $ | 3,219,187 | $ | 289,438 | $ | — | $ | 3,508,625 | ||||||||
Inspire Small/Mid Cap Impact ETF | 1,468,473 | 296,197 | — | 1,764,670 | ||||||||||||
Inspire Corporate Bond Impact ETF | 2,592,260 | — | — | 2,592,260 | ||||||||||||
Inspire 100 ETF | 724,530 | — | — | 724,530 | ||||||||||||
Inspire International ESG ETF | — | — | — | — |
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2019 |
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 | ||||||||||||
As of November 30, 2019, 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 | $ | 529,628 | $ | — | $ | — | $ | — | $ | — | $ | 11,890,391 | $ | 12,420,019 | ||||||||||||||
Inspire Small/Mid Cap Impact ETF | 157,412 | — | — | (238,571 | ) | — | 5,099,120 | 5,017,961 | ||||||||||||||||||||
Inspire Corporate Bond Impact ETF | 342,818 | 107,242 | — | — | — | 3,940,947 | 4,391,007 | |||||||||||||||||||||
Inspire 100 ETF | 195,274 | — | — | (1,137,456 | ) | — | 9,822,430 | 8,880,248 | ||||||||||||||||||||
Inspire International ESG ETF | 243 | — | (10,683 | ) | — | — | 858,808 | 848,368 |
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.
Late year losses incurred after December 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Inspire International ESG ETF incurred and elected to defer such late year losses of $10,683.
At November 30, 2019, the Funds had capital loss carry forwards for federal income tax purposes available to offset future capital gains, utilized capital loss carryforwards as follows:
Non-Expiring | ||||||||||||||||
Portfolio | Short-Term | Long-Term | Total | Utilized | ||||||||||||
Inspire Global Hope ETF | $ | — | $ | — | $ | — | $ | — | ||||||||
Inspire Small/Mid Cap Impact ETF | — | 238,571 | 238,571 | — | ||||||||||||
Inspire Corporate Bond Impact ETF | — | — | — | 4,192 | ||||||||||||
Inspire 100 ETF | 310,462 | 826,994 | 1,137,456 | — | ||||||||||||
Inspire International ESG ETF | — | — | — | — |
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2019 |
Permanent book and tax differences, primarily attributable to realized gain (loss) on in-kind redemptions, passive foreign investment company (PFIC) adjustments and non-deductible expenses, resulted in reclassifications for the Funds for the period ended November 30, 2019 as follows:
Paid | ||||||||
In | Accumulated | |||||||
Portfolio | Capital | Earnings (Losses) | ||||||
Inspire Global Hope ETF | $ | (556,581 | ) | $ | 556,581 | |||
Inspire Small/Mid Cap Impact ETF | (1,369,194 | ) | 1,369,194 | |||||
Inspire Corporate Bond Impact ETF | — | — | ||||||
Inspire 100 ETF | (3,689 | ) | 3,689 | |||||
Inspire International ESG ETF | (9,290 | ) | 9,290 |
7. | AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION – TAX BASIS |
Gross | Gross | Net Unrealized | ||||||||||||||
Unrealized | Unrealized | Appreciation/ | ||||||||||||||
Portfolio | Tax Cost | Appreciation | Depreciation | (Depreciation) | ||||||||||||
Inspire Global Hope ETF | $ | 147,222,229 | $ | 21,314,194 | $ | (9,421,657 | ) | $ | 11,892,537 | |||||||
Inspire Small/Mid Cap Impact ETF | 97,235,881 | 12,085,345 | (6,986,225 | ) | 5,099,120 | |||||||||||
Inspire Corporate Bond Impact ETF | 132,244,563 | 3,946,141 | (5,194 | ) | 3,940,947 | |||||||||||
Inspire 100 ETF | 83,851,247 | 11,717,117 | (1,894,687 | ) | 9,822,430 | |||||||||||
Inspire International ESG ETF | 9,769,526 | 981,293 | (122,550 | ) | 858,743 |
8. | SECURITIES LENDING |
Each Fund may lend up to 33 1/3% of the value of the securities in their portfolio to brokers, dealers and financial institutions (but not individuals) under terms of participation in a securities lending program administered by the Custodian. The securities lending agreement requires that loans are collateralized at all times in an amount equal to at least 100% of the value of any loaned securities at the time of the loan. Each Fund receives compensation in the form of fees. The amount of fees depends on a number of factors including the type of security and length of the loan. Each Fund continues to receive interest payments or dividends on the securities loaned during the borrowing period. Gain or loss in the fair value of securities loaned that may occur during the term of the loan will be for the account of each Fund. Each Fund has the right under the terms of the securities lending agreement to recall the securities from the borrower on demand. The cash collateral is held by the Custodian in accordance with the custody agreement. Each Fund could experience delays in recovering their securities and possible loss of income or value if the borrower fails to return the borrowed securities, although the Funds are indemnified from this risk by contract with the securities lending agent.
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2019 |
As of November 30, 2019, the value of the securities on loan and payable for collateral due to broker were as follows:
Market Value of | Collateral Value | |||||||
Securities on | of Securities on | |||||||
Loan | Loan | |||||||
Inspire Small/MidCap Impact ETF | 3,819,092 | 4,103,999 | ||||||
Inspire 100 ETF | 1,508,094 | 1,543,959 |
The following table is a summary of the Funds’ securities loaned and related collateral, which are subject to a netting agreement as of November 30, 2019:
Gross Amount Not | ||||||||||||||||||||||||
Offset in the Statement | ||||||||||||||||||||||||
of Assets and Liabilities | ||||||||||||||||||||||||
Gross Amounts | Net Amounts of | |||||||||||||||||||||||
Gross | Offset in the | Assets Presented | ||||||||||||||||||||||
Amounts of | Statement of | in the Statement | ||||||||||||||||||||||
Recognized | Assets and | of Assets and | Financial | Collateral | Net | |||||||||||||||||||
Fund | Assets | Liabilities | Liabilities | Instruments | Received | Amount | ||||||||||||||||||
Inspire Small/Mid Cap Impact ETF | ||||||||||||||||||||||||
Securities Lending | $ | 4,103,999 | $ | — | $ | 4,103,999 | $ | — | $ | 4,103,999 | $ | — | ||||||||||||
Inspire 100 ETF | ||||||||||||||||||||||||
Securities Lending | $ | 1,543,959 | $ | — | $ | 1,543,959 | $ | — | $ | 1,543,959 | $ | — |
It is each Fund’s policy to obtain additional collateral from, or return excess collateral to, the borrower by the end of the next business day following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than that required under the lending contract. As of November 30, 2019 the collateral consisted of an institutional government money market funds.
9. | RECENT ACCOUNTING PRONOUNCEMENTS AND REPORTING UPDATES |
In August 2018, the FASB issued ASU No. 2018-13, which changed certain fair value measurement disclosure requirements. The ASU, in addition to other modifications and additions, removed 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. These amendments have been adopted with these financial statements.
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2019 |
10. | 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 other 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, 2019:
Dividend Per Share | Short Term Capital Gain | Long Term Capital Gain | Ex Date | Record Date | Payable Date | |||||||||||||
Inspire Global Hope ETF | $ | 0.0982 | $ | 0.0304 | $ | — | 12/13/2019 | 12/16/2019 | 12/23/2019 | |||||||||
Inspire Small/Mid Cap Impact ETF | $ | 0.0393 | $ | 0.0011 | $ | 0.0100 | 12/13/2019 | 12/16/2019 | 12/23/2019 | |||||||||
Inspire Corporate Bond Impact ETF | $ | 0.0405 | $ | 0.0559 | $ | 0.0199 | 12/13/2019 | 12/16/2019 | 12/23/2019 | |||||||||
Inspire 100 ETF | $ | 0.1037 | $ | — | $ | — | 12/13/2019 | 12/16/2019 | 12/23/2019 |
77
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, Inspire 100 ETF, and Inspire International ESG 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, Inspire 100 ETF, and Inspire International ESG 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, 2019, and the related statements of operations, the statements of changes in net assets and the financial highlights 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, 2019, and the results of their operations, the changes in their net assets and their financial highlights as noted in the table below, in conformity with accounting principles generally accepted in the United States of America.
Fund | Statements of Operations and Changes in Net Assets and theFinancial Highlights Presented |
Inspire Global Hope ETF | The statement of operations for the year ended November 30, 2019, the statements of changes in net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the two-year period then ended and for the period from February 27, 2017 (commencement of operations) to November 30, 2017 |
Inspire Small/Mid Cap Impact ETF | The statement of operations for the year ended November 30, 2019, the statements of changes in net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the two-year period then ended and for the period from February 27, 2017 (commencement of operations) to November 30, 2017 |
Inspire Corporate Bond Impact ETF | The statement of operations for the year ended November 30, 2019, the statements of changes in net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the two-year period then ended and for the period from July 10, 2017 (commencement of operations) to November 30, 2017 |
Inspire 100 ETF | The statement of operations for the year ended November 30, 2019, the statements of changes in net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the two-year period then ended and for the period from October 30, 2017 (commencement of operations) to November 30, 2017 |
Inspire International ESG ETF | The statements of operations, changes in net assets and the financial highlights for the period from September 30, 2019 (commencement of operations) to November 30, 2019 |
78
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.
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 the 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, 2019 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.
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, 2020
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The Inspire ETFs |
EXPENSE EXAMPLES (Unaudited) |
November 30, 2019 |
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 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, 2019 through November 30, 2019.
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 | 6/1/2019 | 11/30/2019 | 6/1/19 - 11/30/19 | 6/1/19 - 11/30/19 | ||||
Inspire Global Hope ETF | $1,000.00 | $1,114.30 | $2.92 | 0.55% | ||||
Inspire Small/Mid Cap Impact ETF | $1,000.00 | $1,113.60 | $3.18 | 0.60% | ||||
Inspire Corporate Bond Impact ETF | $1,000.00 | $1,031.80 | $2.90 | 0.57% | ||||
Inspire 100 ETF | $1,000.00 | $1,142.80 | $1.88 | 0.35% | ||||
Inspire International ESG ETF*** | $1,000.00 | $1,060.40 | $4.20 | 2.44% | ||||
Hypothetical | ||||||||
(5% return before expenses) | ||||||||
Inspire Global Hope ETF | $1,000.00 | $1,022.31 | $2.79 | 0.55% | ||||
Inspire Small/Mid Cap Impact ETF | $1,000.00 | $1,022.06 | $3.04 | 0.60% | ||||
Inspire Corporate Bond Impact ETF | $1,000.00 | $1,022.21 | $2.89 | 0.57% | ||||
Inspire 100 ETF | $1,000.00 | $1,023.31 | $1.78 | 0.35% | ||||
Inspire International ESG ETF*** | $1,000.00 | $1,004.28 | $4.09 | 2.44% |
* | 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. |
*** | Inspire International ESG ETF commenced operations on September 30, 2019 therefore their “Actual” expenses are equal to the average account value over the period, multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the period (61) divided by the number of days in the fiscal year (365). |
80
The Inspire ETFs |
SUPPLEMENTAL INFORMATION (Unaudited) |
November 30, 2019 |
Approval of the Investment Advisor Agreement – CWM Advisors, LLC dba Inspire
In connection with the Meeting of the Board of Trustees (the “Board”) of Northern Lights Fund Trust IV (the “Trust”), held on January 17, 2019, the Trustees, including a majority of the Trustees who are not “interested persons,” as that term is defined in the Investment Company Act of 1940, as amended, discussed the approval of an investment advisory agreement (the “Inspire Advisory Agreement”) between CWM Advisors, LLC dba Inspire (the “Adviser”) and the Trust, with respect to the Inspire Corporate Bond Impact ETF (“Inspire Corporate”), Inspire Global Hope ETF (“Inspire Global Hope”), Inspire Small/Mid Cap Impact (“Inspire Small/Mid Cap Impact”) and Inspire 100 ETF (“Inspire 100”), (together the “Inspire ETFs” or the “Funds”). In considering the approval of the Advisory Agreement, the Trustees received materials specifically relating to the Advisory Agreement.
The Trustees reviewed and discussed the 15(c) materials that were provided in advance of the Meeting and deliberated on the approval of the Inspire Advisory Agreement. The Trustees relied upon the advice of independent legal counsel and their own business judgment in determining the material factors to be considered in evaluating the advisory agreement and the weight to be given to each factor considered. The conclusions reached by the Trustees were based on a comprehensive evaluation of all of the information provided and were not the result of any one factor. Moreover, each Trustee may have afforded different weight to the various factors in reaching his conclusions with respect to the approval of the Inspire Advisory Agreement.
Nature, Extent and Quality of Services. The Trustees noted that the adviser had reached its three year mark and managed approximately $253 million in assets. They reviewed the background of the key investment personnel responsible for servicing the Fund. The Trustees discussed the adviser’s adherence to the Inspire Impact Score© investment methodology. The Trustees reviewed the adviser’s practices for monitoring compliance as set forth in the investment adviser questionnaire responses. The Trust CCO noted the adequacy of the adviser’s compliance program. After further discussion, the Trustees concluded that the adviser continues to have the ability to provide a level of service consistent with their expectations.
Performance. The Trustees discussed the reports prepared by Broadridge Financial Solutions, Inc. (“Broadridge”) and reviewed the performance of each Inspire ETF as compared to its Broadridge peer group and Morningstar category for the one year and since inception periods as of October 31, 2018. The Trustees considered each Fund’s respective investment objectives and each of the Fund’s peer group and Morningstar category, noting the shortage of direct comparison because none were passively managed biblically responsible ETFs:
Inspire 100: The Trustees considered the Fund’s performance over the one year and since inception periods and noted it underperformed its Morningstar category median and the Broadridge peer group median for both periods. However, the Trustees noted that the Fund’s performance was in-line with the Index the Fund tracks. The Trustees concluded Inspire 100’s performance was not unreasonable.
81
The Inspire ETFs |
SUPPLEMENTAL INFORMATION (Unaudited)(Continued) |
November 30, 2019 |
Inspire Corporate Bond: The Trustees considered the Fund’s performance over the one year and since inception periods and noted it outperformed its Morningstar category median and Broadridge peer group median for the both periods. The Trustees noted that the Fund was the best performing Fund in its Broadridge peer group for the one-year period. The Trustees concluded Inspire Corporate Bond’s performance was not unreasonable.
Inspire Global Hope: The Trustees considered the Fund’s performance over the one year and since inception periods and noted it underperformed its Morningstar category median and the Broadridge peer group median for the one-year period and the period since inception. The Trustees concluded Inspire Global Hope’s performance was not unreasonable.
Inspire Small/Mid Cap Impact: The Trustees considered the Fund’s performance over the one year and since inception periods. The Trustees noted the Fund outperformed its Morningstar category median and its peer group median for the one-year period and underperformed its Morningstar category median and the Broadridge peer group median for the period since inception. The Trustees noted the Fund’s performance was in line with the Index the Fund tracks for the one -year period and underperformed the Index for the period since inception. The Trustees concluded Inspire Small/Mid Cap Impact’s performance was not unreasonable.
Fees and Expenses.
Inspire 100: The Trustees evaluated the Fund’s advisory fee, noting that the advisory fee of 0.30% was lower than the Broadridge peer group average and median. The Trustees discussed the Fund’s net expense ratio and noted that it was lower that its peer group average and median. They further noted that the Fund’s net expense ratio was higher than its assigned Morningstar category median but in line with its Morningstar category average. The Trustees considered that the adviser had an expense limitation in place with respect to the Fund. The Trustees concluded that the Fund’s advisory fee was not unreasonable.
Inspire Corporate Bond: The Trustees evaluated the Fund’s advisory fee, noting that the advisory fee of 0.30% was higher than the Broadridge peer group median, and higher than the Morningstar category average and median, but within the range of the Morningstar category. The Trustees discussed the Fund’s net expense ratio and noted that it was higher than its peer group average. They further noted that the Fund’s net expense ratio was higher than its assigned Morningstar category median and average but within the range of the category. The Trustees considered that the adviser had an expense limitation in place with respect to the Fund. The Board further considered the adviser’s assertion that non-advisory fee related expenses were a driver of total operating expenses. The Trustees concluded that the Fund’s advisory fee was not unreasonable.
Inspire Global Hope: The Trustees evaluated the Fund’s advisory fee, noting that the advisory fee of 0.30% was lower than the Broadridge peer group average and median and the Morningstar category average and median. The Trustees discussed the Fund’s net expense ratio and noted that it was higher than its peer group average. They further noted that the Fund’s net expense ratio was higher than its assigned Morningstar category median and average but within the range
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The Inspire ETFs |
SUPPLEMENTAL INFORMATION (Unaudited)(Continued) |
November 30, 2019 |
of the category. The Trustees considered that the adviser had an expense limitation in place with respect to the Fund. The Board further considered the adviser’s assertion that non-advisory fee related expenses were a driver of total operating expenses. The Trustees concluded that the Fund’s advisory fee was not unreasonable.
Inspire Small/Mid Cap Impact: The Trustees evaluated the Fund’s advisory fee, noting that the advisory fee of 0.30% was lower than the Broadridge peer group median and average, and in line with the Morningstar category average and median. The Trustees discussed the Fund’s net expense ratio and noted that it was higher than its peer group average. They further noted that the Fund’s net expense ratio was higher that its assigned Morningstar category median and average but within the range of the category. The Trustees considered that the adviser had an expense limitation in place with respect to the Fund. The Board further considered the adviser’s assertion that non-advisory fee related expenses were a driver of total operating expenses and Fund size. The Trustees concluded that the Fund’s advisory fee was not unreasonable.
Profitability.The Trustees reviewed Inspire’s profitability analysis in connection with the advisory services it provides to each of the Inspire ETFs, noting that Inspire was providing such services to each Fund at a loss. The Trustees concluded, therefore, that Inspire’s profitability with respect to each Fund was not excessive.
Economies of Scale. The Trustees noted that economies of scale had not yet been reached. The Trustees noted that consideration of economies of scale would be revisited if Fund assets grow significantly.
Conclusion.The Trustees relied upon the advice of counsel, and their own business judgment in determining the material factors to be considered in evaluating the Advisory Agreement and the weight to be given to each such factor. Accordingly, having requested and received such information from Inspire as the Trustees believed to be reasonably necessary to evaluate the terms of the Advisory Agreement, and as assisted by the advice of independent counsel, the Trustees including all of the Independent Trustees, determined that, with respect to the reapproval of the Advisory Agreement, (a) the terms of the Advisory Agreement were reasonable; (b) the advisory fee paid by each Inspire Fund was not un reasonable; and (c) the profitability of the adviser earned under the Advisory Agreement was not excessive with respect to each of the Inspire ETFs and its respective shareholders. In considering the renewal of the Advisory Agreement, the Trustees did not identify any one factor as all important, but rather considered these factors collectively and determined that approval of the renewal of the Advisory Agreement was in the best interests of each Inspire ETF and its respective shareholders, as appropriate. Moreover, the Trustees noted that each Trustee may have afforded different weight to the various factors in reaching his conclusions with respect to each Advisory Agreement.
83
The Inspire ETFs |
SUPPLEMENTAL INFORMATION (Unaudited)(Continued) |
November 30, 2019 |
Approval of the Investment Advisor Agreement Inspire – Inspire International ESG ETF
In connection with the meeting of the Board of Trustees (the “Board” or “Trustees”) of Northern Lights Fund Trust IV (the “Trust”), held on July 18, 2019, the Trustees, including a majority of the Trustees who are not “interested persons,” as that term is defined in the Investment Company Act of 1940, as amended, discussed the approval of an investment advisory agreement (the “Inspire Advisory Agreement”) between Inspire and the Trust, with respect to Inspire International ESG ETF (the “Fund”). In considering the approval of the Inspire Advisory Agreement, the Trustees received materials specifically relating to the Inspire Advisory Agreement.
The Trustees reviewed and discussed the materials that were provided in advance of the Meeting and deliberated on the approval of the Inspire Advisory Agreement. The Trustees relied upon the advice of independent legal counsel and their own business judgment in determining the material factors to be considered in evaluating the Inspire Advisory Agreement and the weight to be given to each factor considered. The conclusions reached by the Trustees were based on a comprehensive evaluation of all of the information provided and were not the result of any one factor. Moreover, each Trustee may have afforded different weight to the various factors in reaching his conclusions with respect to the approval of the Inspire Advisory Agreement.
Nature, Extent and Quality of Services.The Trustees noted that Inspire has approximately $530 million in assets under management and has been in operation since August 2015. The Trustees further noted that the adviser currently advises four Biblically Responsible Investing ETFs in the Trust and separately managed accounts using its proprietary selection methodology, Inspire Impact Score©. After further discussion, the Trustees concluded that the adviser has the ability to provide a level of service consistent with the Board’s expectations.
Performance. The Trustees considered the performance of the Inspire Global Hope ex-US Index that the Fund will track and the benchmark index, Vanguard FTSE All World EX-US for the one year and since inception periods. After further discussion, the Trustees concluded that the adviser has the potential to deliver positive returns to shareholders in line with the Board’s expectations.
Fees and Expenses.The Trustees noted that the Fund’s proposed advisory fee of 0.45% of the Fund’s average net daily assets was higher than the advisory fee for the other Inspire ETFs but was in line with the peer group average and lower than the Morningstar category average of 0.47%. They further noted that the Fund’s net expense ratio was higher than its assigned Morningstar category median and category average. The Trustees acknowledged the adviser’s assertion that advising a fund with a portfolio of investments in mostly foreign securities including emerging market securities could be more costly and complex than managing a fund with a portfolio of international and domestic securities. The Trustees noted that Inspire will not implement an expense limitation. After further discussion, the Trustees concluded that the proposed advisory fee was not unreasonable.
84
The Inspire ETFs |
SUPPLEMENTAL INFORMATION (Unaudited)(Continued) |
November 30, 2019 |
Profitability.The Trustees reviewed a profitability analysis provided by the adviser and considered whether the level of anticipated profit is reasonable. They noted the adviser anticipated realizing a profit in connection with its relationship with the Fund, but agreed that such profit was not excessive, both in actual dollars and as a percentage of revenue, particularly when the adviser’s reinvestment of legitimate profits into the Fund. The Trustees concluded, after further discussion, that excessive profit is not a concern at this time.
Economies of Scale. The Trustees noted that economies of scale had not yet been reached as the Fund has not yet launched. The Trustees noted that consideration of economies of scale would be revisited as assets grow for the Fund.
Conclusion.Having requested and received such information from Inspire as the Board believed to be reasonably necessary to evaluate the terms of the Inspire Advisory Agreement, and as assisted by the advice of independent counsel, the Board determined that approval of the Inspire Advisory Agreement is in the best interests of the Fund and its future shareholders.
85
The Inspire ETFs |
SUPPLEMENTAL INFORMATION (Unaudited) |
November 30, 2019 |
The business address of each Trustee and Officer is 225 Pictoria Drive, Suite 450, Cincinnati, OH 45246. All correspondence to the Trustees and Officers should be directed to c/o Gemini Fund Services, LLC, P.O. Box 541150, Omaha, Nebraska 68154.
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 2016). | 5 | 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). | 5 | 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); | 5 | Northern Lights Fund Trust IV (for series not affiliated with the Fund since 2015); Advisors Preferred Trust (since November 2012) |
11/30/19 – NLFT IV_v6
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The Inspire ETFs |
SUPPLEMENTAL INFORMATION (Unaudited)(Continued) |
November 30, 2019 |
Officers
Name 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 Year of Birth: 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 Year of Birth: 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 Year of Birth: 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 |
James Ash Year of Birth: 1976 | Chief Compliance Officer since 2019 | Senior Compliance Officer, Northern Lights Compliance, LLC (since 2019); Senior Vice President, National Sales Gemini Fund Services, LLC (2017-2019); Senior Vice President and Director of Legal Administration, Gemini Fund Services, LLC (2012 - 2017). | 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, 2019, the Trust was comprised of 18 other active portfolios managed by unaffiliated investment advisers. The term “Fund Complex” applies only to the Fund and the five 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 Funds’ SAI includes additional information about the Trustees and is available free of charge, upon request, by calling toll-free at 1-877-658-9473.
11/30/19 – NLFT IV_v6
87
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. |
89
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 |
2019 – $58,300
2018 – $50,800
(b) | Audit-Related Fees |
2019 – None
2018 – None
(c) | Tax Fees |
2019 – $11,000
2018 – $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 |
2019 - None
2018 - 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 |
2019 | 2018 | |||||||
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: |
2019 - $11,000
(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)(3) Not applicable for open-end investment companies.
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 2/7/20
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 2/7/20
By (Signature and Title)
/s/ Sam Singh
Sam Singh, Principal Financial Officer/Treasurer
Date 2/7/20