N-CSR
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: 811-07322
The Integrity Funds
(Exact name of registrant as specified in charter)
1 Main Street North, Minot, ND | | 58703 |
(Address of principal offices) | | (Zip code) |
Brent Wheeler and/or Kevin Flagstad, PO Box 500, Minot, ND 58702
(Name and address of agent for service)
Registrant’s telephone number, including area code: 701-852-5292
Date of fiscal year end: July 31st
Date of reporting period: July 31, 2023
Item 1. REPORTS TO STOCKHOLDERS.
THE INTEGRITY FUNDS
Integrity Dividend Harvest Fund
Integrity Dividend Summit Fund
Integrity Growth & Income Fund
Integrity High Income Fund
Integrity Mid-North American Resources Fund
Integrity Short Term Government Fund
Annual Report | July 31, 2023
Investment Adviser
Viking Fund Management, LLC
PO Box 500
Minot, ND 58702 | Principal Underwriter
Integrity Funds Distributor, LLC*
PO Box 500
Minot, ND 58702 |
Transfer Agent
Integrity Fund Services, LLC
PO Box 759
Minot, ND 58702 | Custodian
UMB Bank
928 Grand Blvd.
Kansas City, MO 64106
|
Independent Registered Public Accounting Firm
Cohen & Company, Ltd.
1350 Euclid Avenue, Suite 800 Cleveland, OH 44115 |
*The Funds are distributed through Integrity Funds Distributor, LLC. Member FINRA
INTEGRITY DIVIDEND HARVEST FUND
Enclosed is the annual report of the operations for the Integrity Dividend Harvest Fund (the “Fund”) for the year ended July 31, 2023 (“the period”). The Fund’s portfolio and related financial statements are presented within for your review.
The period saw the S&P 500 TR Index return 13.02%. Against a backdrop of high inflation, high interest rates, and global geopolitical turmoil, the market managed to provide double digit returns. This is likely due to the market’s forward looking nature. After a large pullback in the prior period, investors started to look for positive signs that might drive the market higher. The Federal Reserve provided a glimmer of hope as they began slowing the pace of interest rate increases, signaling that the end to the rate hike cycle may be near. While value stocks dominated the first half of the period, growth stocks took over in the back half. Much of the market’s YTD 2023 gains were driven by a handful of growth stocks with triple-digit returns. Rates of over 5% in money market funds drew the attention of income investors. It is yet to be seen if the recent rise in rates will lead to a “soft landing” or if a recession still looms around the corner.
Per the U.S. Bureau of Labor Statistics, the unemployment rate remained relatively flat over the period, ending at 3.5%. The Federal Reserve’s Federal Open Market Committee continued raising interest rates in an attempt to slow inflation. As of the end of the period, the target range for the federal funds rate stood at 5.25% to 5.50%, up from 2.25% to 2.50% at the beginning of the period. The rate of the increases did slow near the end of the period, including one meeting where the rate was not raised at all.
During the period, the Technology sector was the best performer, followed by Communication Services. The market’s recovery rally has been led by certain stocks in these sectors such as Apple, Microsoft, Nvidia, Alphabet, and Meta. The worst performing sectors were Real Estate and Utilities. Real Estate was negatively impacted by the work-from-home trend which has now caused many office buildings to remain well under capacity. Utilities stocks, valued for their generally stable dividends, didn’t look quite as attractive to investors who could find income from money markets, certificates of deposit, and treasuries.
The Fund’s total returns for Class A, C, and I Shares were 5.31%, 4.50%, and 5.58%, respectively, without sales charge, for the year ended July 31, 2023 while the S&P 500 returned 13.02%. The Fund is in the Morningstar Large Value category which returned 8.61% over the same time period. The Fund underperformed both its Morningstar category and the S&P 500. The Fund’s underperformance relative to the S&P 500 was primarily driven by stock selection in Communication Services, an overweight allocation to Utilities, and an underweight allocation to Technology. Aiding relative performance was an underweight allocation to Real Estate and stock selection in Technology.
The Fund seeks to maximize total return by emphasizing high current income with long term appreciation as a secondary objective, consistent with preservation of capital. The Portfolio Management Team (“Team”) considers dividend yield, dividend growth rate, earnings growth, price-to-earnings multiples, and balance sheet strength. The Team emphasizes dividend yield in selecting stocks for the Fund because the Team believes that, over time, dividend income can contribute significantly to total return and is a more consistent source of investment return than appreciation.
If you would like more frequent updates, visit our website at www.integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
The Portfolio Management Team
The views expressed are those of The Portfolio Management Team of Viking Fund Management. The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
INTEGRITY DIVIDEND HARVEST FUND
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended July 31, 2023
| 1 year | 3 year | 5 year | 10 year | Since Inception* |
Class A Without sales charge | 5.31% | 13.02% | 8.90% | 9.32% | 9.98% |
Class A With sales charge (5.00%) | 0.05% | 11.10% | 7.79% | 8.77% | 9.47% |
Class C Without CDSC | 4.50% | 12.16% | 8.07% | N/A | 8.50% |
Class C With CDSC (1.00%) | 3.50% | 12.16% | 8.07% | N/A | 8.50% |
Class I Without sales charge | 5.58% | 13.29% | 9.16% | N/A | 8.64% |
* May 1, 2012 for Class A; August 3, 2015 for Class C; August 1, 2016 for Class I |
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.43%, 2.18%, and 1.18% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.95%, 1.70%, and 0.70% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2023 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.95%, 1.70%, and 0.70% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to November 29, 2023 with the approval of the Fund’s Board of Trustees.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares. The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends.
INTEGRITY DIVIDEND SUMMIT FUND
Enclosed is the annual report of the operations for the Integrity Dividend Summit Fund (the “Fund”) for the period of May 1, 2023 (inception of operations) through July 31, 2023 (the “period”). The Fund’s portfolio and related financial statements are presented within for your review.
The period saw the S&P 500 TR Index return 13.02%. Against a backdrop of high inflation, high interest rates, and global geopolitical turmoil, the market managed to provide double digit returns. This is likely due to the market’s forward looking nature. After a large pullback in the prior period, investors started to look for positive signs that might drive the market higher. The Federal Reserve provided a glimmer of hope as they began slowing the pace of interest rate increases, signaling that the end to the rate hike cycle may be near. While value stocks dominated the first half of the period, growth stocks took over in the back half. Much of the market’s YTD 2023 gains were driven by a handful of growth stocks with triple-digit returns. Rates of over 5% in money market funds drew the attention of income investors. It is yet to be seen if the recent rise in rates will lead to a “soft landing” or if a recession still looms around the corner.
Per the U.S. Bureau of Labor Statistics, the unemployment rate remained relatively flat over the period, ending at 3.5%. The Federal Reserve’s Federal Open Market Committee continued raising interest rates in an attempt to slow inflation. As of the end of the period, the target range for the federal funds rate stood at 5.25% to 5.50%, up from 2.25% to 2.50% at the beginning of the period. The rate of the increases did slow near the end of the period, including one meeting where the rate was not raised at all.
During the period, the Technology sector was the best performer, followed by Communication Services. The market’s recovery rally has been led by certain stocks in these sectors such as Apple, Microsoft, Nvidia, Alphabet, and Meta. The worst performing sectors were Real Estate and Utilities. Real Estate was negatively impacted by the work-from-home trend which has now caused many office buildings to remain well under capacity. Utilities stocks, valued for their generally stable dividends, didn’t look quite as attractive to investors who could find income from money markets, certificates of deposit, and treasuries.
The Fund’s total returns for Class A, C, and I Shares were 3.25%, 3.25%, and 3.31%, respectively, without sales charge and including voluntary and contractual expense waivers and reimbursements, since inception through July 31st 2023 while the Russell 1000 Value returned 6.19% over the same period. The Fund’s underperformance relative to the Russell 1000 Value was primarily driven by stock selection in Communication Services and an overweight allocation to Consumer Staples. Aiding relative performance was stock selection in Financials.
The Fund seeks to maximize total return by emphasizing high current income with long term appreciation as a secondary objective, consistent with preservation of capital. The Portfolio Management Team (“Team”) considers dividend yield, dividend growth rate, earnings growth, price-to-earnings multiples, and balance sheet strength. The Team emphasizes dividend yield in selecting stocks for the Fund because the Team believes that, over time, dividend income can contribute significantly to total return and is a more consistent source of investment return than appreciation.
If you would like more frequent updates, visit our website at www.integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
The Portfolio Management Team
The views expressed are those of The Portfolio Management Team of Viking Fund Management. The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
INTEGRITY DIVIDEND SUMMIT FUND
Total Returns from May 1, 2023 (Inception date) through July 31, 2023
| 1 year | 3 year | 5 year | 10 year | Since Inception* |
Class A Without sales charge | N/A | N/A | N/A | N/A | 3.25% |
Class A With sales charge (5.00%) | N/A | N/A | N/A | N/A | -1.95% |
Class C Without CDSC | N/A | N/A | N/A | N/A | 3.25% |
Class C With CDSC (1.00%) | N/A | N/A | N/A | N/A | 2.25% |
Class I Without sales charge | N/A | N/A | N/A | N/A | 3.31% |
* May 1, 2023 for Class A, C and I |
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 12.71%, 13.45%, and 12.42% for Class A, C, and I, respectively. Management has voluntarily waived all expenses for the period May 1, 2023 (Inception date) through July 31, 2023. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal period was 0.00%, 0.00%, and 0.00% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2024 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.99%, 1.74%, and 0.74% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to November 29, 2024 with the approval of the Fund’s Board of Trustees. In addition, the Fund’s investment adviser has voluntarily waived and reimbursed all expenses indefinitely.
The table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares.
INTEGRITY GROWTH & INCOME FUND
Enclosed is the annual report of the operations for the Integrity Growth & Income Fund (the “Fund”) for the year ended July 31, 2023 (“the period”). The Fund’s portfolio and related financial statements are presented within for your review.
The period saw the S&P 500 TR Index return 13.02%. Against a backdrop of high inflation, high interest rates, and global geopolitical turmoil, the market managed to provide double digit returns. This is likely due to the market’s forward looking nature. After a large pullback in the prior period, investors started to look for positive signs that might drive the market higher. The Federal Reserve provided a glimmer of hope as they began slowing the pace of interest rate increases, signaling that the end to the rate hike cycle may be near. While value stocks dominated the first half of the period, growth stocks took over in the back half. Much of the market’s YTD 2023 gains were driven by a handful of growth stocks with triple-digit returns. Rates of over 5% in money market funds drew the attention of income investors. It is yet to be seen if the recent rise in rates will lead to a “soft landing” or if a recession still looms around the corner.
Per the U.S. Bureau of Labor Statistics, the unemployment rate remained relatively flat over the period, ending at 3.5%. The Federal Reserve’s Federal Open Market Committee continued raising interest rates in an attempt to slow inflation. As of the end of the period, the target range for the federal funds rate stood at 5.25% to 5.50%, up from 2.25% to 2.50% at the beginning of the period. The rate of the increases did slow near the end of the period, including one meeting where the rate was not raised at all.
During the period, the Technology sector was the best performer, followed by Communication Services. The market’s recovery rally has been led by certain stocks in these sectors such as Apple, Microsoft, Nvidia, Alphabet, and Meta. The worst performing sectors were Real Estate and Utilities. Real Estate was negatively impacted by the work-from-home trend which has now caused many office buildings to remain well under capacity. Utilities stocks, valued for their generally stable dividends, didn’t look quite as attractive to investors who could find income from money markets, certificates of deposit, and treasuries.
The Fund’s total returns for Class A, C, and I Shares were 12.98%, 12.14%, and 13.25%, respectively, without sales charge, for the year ended July 31, 2023 while the S&P 500 returned 13.02%. The Fund is in the Morningstar Large Blend category which returned 11.44% over the same time period. The Fund outperformed its Morningstar category and performed in-line with the S&P 500. The Fund’s performance relative to the S&P 500 was aided by stock selection in Technology, an overweight allocation to Technology, and an underweight allocation to Healthcare. Detracting from relative performance was stock selection in Communication Services.
The Fund is managed using a blended growth and income investment strategy. We seek to invest primarily in domestic common stocks, balancing investments between growth and dividend paying stocks, depending on where we see the best value. We also try to emphasize companies we believe offer both attractive investment opportunities and demonstrate a positive awareness of their impact on the society in which they operate.
If you would like more frequent updates, visit our website at www.integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
The Portfolio Management Team
The views expressed are those of The Portfolio Management Team of Viking Fund Management. The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
INTEGRITY GROWTH & INCOME FUND
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended July 31, 2023
| 1 year | 3 year | 5 year | 10 year | Since Inception* |
Class A Without sales charge | 12.98% | 11.55% | 11.65% | 10.66% | 9.24% |
Class A With sales charge (5.00%) | 7.33% | 9.66% | 10.51% | 10.10% | 9.04% |
Class C Without CDSC | 12.14% | 10.81% | 11.03% | N/A | 9.88% |
Class C With CDSC (1.00%) | 11.14% | 10.81% | 11.03% | N/A | 9.88% |
Class I Without sales charge | 13.25% | 11.83% | 11.94% | N/A | 12.51% |
* January 3, 1995 for Class A; August 3, 2015 for Class C; August 1, 2016 for Class I |
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.83%, 2.58%, and 1.58% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 1.24%, 1.99%, and 0.99% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2023 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 1.24%, 1.99%, and 0.99% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to November 29, 2023 with the approval of the Fund’s Board of Trustees.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares. The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends. The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser.
INTEGRITY HIGH INCOME FUND
Enclosed is the annual report of the operations for the Integrity High Income Fund (the “High Income Fund” or the “Fund”) for the year ended July 31, 2023. The Fund’s portfolio and related financial statements are presented within for your review.
Market Environment
At the beginning of the annual review period on the heels of the worst first half of any calendar year ever, the high yield market rallied on strong corporate earnings and a rebound in higher quality bonds due in part to a decline in US Treasury rates. By mid-August, however, a dramatic reversal ensued as commentary from central banks remained hawkish and recession concerns increased, causing extreme market volatility and negative high yield returns for the balance of the third quarter. Despite selling off the last two weeks of the year, the high yield market experienced a slight reprieve during the fourth quarter and carried that momentum into January. High yield, and risk assets more broadly, posted solid 1Q23 gains despite the continued macro headwinds. Central banks continued their rhetoric on the dangers of runaway inflation versus a hard landing scenario and faced new challenges as the second largest bank failure in US history occurred. Subsequent contagion risk/fears emerged across US regional banks, just days before UBS acquired Credit Suisse in a government backed deal, marking the first time two Systemically Important Banks merged. Prior to March, high yield outperformed in January on no real news other than speculation that the Fed would not follow through with continued hikes and that inflation was moderating. This reversed in February as yields across the US Treasury curve increased 40-60bps following the release of strong economic and inflationary data. While macro sentiment was cautious at the outset of the second quarter, high yield was largely out of the eye of the storm as it entered an earnings season that yet again met/beat weak expectations. Sector and issuer dispersion continued to percolate; consumer experience sectors are posting record numbers and backlog while telecom faces a higher capex environment amid elevated borrowing costs and chemical companies end markets struggle to find demand. The Fed paused in June but indicated future rate hikes were still the expectation, and subsequent strong economic and employment data further cemented the market’s belief for a 25bp hike in July. High yield generated carry returns for the second quarter, fueled by the risk-on rally in June. July was another strong return month for high yield with lower quality leading the way again as positive inflation data, better-than-expected second quarter earnings and a strong technical drove spreads near the 400bp level. The Fed remained hawkish with the expected 25bp point hike although gave acknowledgement to the recent positive data, suggesting a pause may be ahead. Risk assets now trade at valuations that take a hard landing off the table with mentions of Goldilocks and no landing increasing. Little new supply and increasing demand for high yield is providing a strong technical to secondary market prices.
The high yield market returned +4.41% for the trailing twelve-month period ending July 31st (as measured by the Bloomberg Barclays U.S. High Yield Index) as spreads tightened 101 bps to 397 bps while yields increased 0.68% to 8.41%. After repricing in 1H22, yields and spreads have been largely range-bound over the last year but trending tighter in July. Outperformance came from down-in-quality bonds with CCCs (+6.48%) outperforming Single Bs (+5.20%) and BBs (+2.98%) for the trailing year. Sectors outperforming included Oil Field Services (+20.35%), Leisure (+13.49%), and Gaming (+11.92%), while Wireless (-5.61%), Health Insurance (-3.76%) and Wirelines (-3.36%) lagged.
Year-to-date, gross issuance of $102.3bn and net of $38.1bn compares to $72.9bn and $38.5bn through the first 7 months in 2022 and $106.5bn and $56.0bn for the full year. Capital market activity for high yield bonds for the year-to-date period has priced $102.3bn, tracking marginally ahead of last year’s record low pace. Refinancing represents 63% of the activity year-to-date. Mutual fund flows have been positive recently with a $1.3 billion inflow in July following $2.7bn in June, bringing the year-to-date outflows to -$9.3bn. Recall, full year 2022’s -$48.9bn outflow was the most on record. Year-to-date, bonds for thirteen companies have defaulted totaling $16.1bn. The trailing 12-month par weighted default rate of 1.18% has risen from last year (0.83%) but remains well below the long- term average of 3.50%.
With a +4.41% return for the trailing twelve-month period ended July 31, 2023, high yield (as measured by Bloomberg Barclays U.S. High Yield Index) outperformed all other major fixed income asset classes including emerging markets (EMCB), +3.11%; high-grade credit (C0A0), -1.07%; U.S. Aggregate (D0A0), -3.49%; and 5-year Treasuries (GA05), -3.89%.
Fund Performance and Positioning
For the twelve-month period ended July 31, 2023, the Integrity High Income Fund returned +2.41% (A Class Shares, net of fees), +1.65% (C Class Shares, net of fees) and +2.66% (I Class Shares, net of fees) compared to its benchmark, the Bloomberg Barclays U.S. High Yield Index, which returned +4.41%. The Fund underperformed the benchmark for the twelve-month period, as a result of security selection in the wirelines, retailers and gaming sectors. Specifically, relative weightings in Lumen Technologies, Rite Aid Corporation, iHeartmedia, Wesco Aircraft Holdings and Carnival Corporation detracted from performance in the period. Alternatively, relative performance benefitted from security selection in the automotive, pharmaceuticals and independent sectors. The largest contributions to performance resulted from relative weightings in Bausch Health Companies, Cooper Standard Holdings, Chord Energy Corporation, Next Alt Sarl, and CSC Holdings.
Compared to the benchmark on July 31, 2023, the Fund remained overweight in cable satellite, consumer products and automotive due to our view of the relative value opportunities within those sectors. The Fund was underweight in finance companies, gaming and P&C because we have not found these sectors attractive due to challenging fundamental outlooks or rich valuations. Relative to the benchmark on July 31, 2023, the Fund’s yield, spread and duration are lower than those of the benchmark.
Market Outlook
The high yield market has tightened over 70bps through the recent trading range, returning 6.83% year-to-date (as measured by Bloomberg Barclays U.S. High Yield Index). While defaults are likely to continue to rise, the trailing twelve-month default rate actually fell to 1.18% in July, compared to the long-term average of 3.50%. Thus, despite the move in spreads, valuations remain fair and reflect the current risk in the market. Despite the outperformance from lower quality, dispersion continues to increase as pockets of idiosyncratic stresses emerge. Given the strong fundamentals and supportive technicals, we believe high yield will continue to provide attractive carry for the rest of 2023.
If you would like more frequent updates, visit our website at www.integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
Robert L. Cook
Managing Director
J.P. Morgan Investment Management, Inc. | Thomas G. Hauser
Managing Director
J.P. Morgan Investment Management, Inc. |
The views expressed are those of Robert L. Cook, Senior Portfolio Manager and Managing Director, and Thomas G. Hauser, Vice President, J.P. Morgan Investment Management, Inc. (“JPMIM”), sub-adviser to the Fund. The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
INTEGRITY HIGH INCOME FUND
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended July 31, 2023
| 1 year | 3 year | 5 year | 10 year | Since Inception* |
Class A Without sales charge | 2.41% | 2.06% | 3.24% | 3.92% | 4.76% |
Class A With sales charge (4.25%) | -2.00% | 0.60% | 2.35% | 3.47% | 4.53% |
Class C Without CDSC | 1.65% | 1.31% | 2.48% | 3.15% | 3.96% |
Class C With CDSC (1.00%) | 0.68% | 1.31% | 2.48% | 3.15% | 3.96% |
Class I Without sales charge | 2.66% | 2.31% | 3.47% | N/A | 4.26% |
* April 30, 2004 for Class A and C; August 1, 2016 for Class I |
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.68%, 2.43%, and 1.43% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.99%, 1.74%, and 0.74% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2023 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.99%, 1.74%, and 0.74% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to November 29, 2023 with the approval of the Fund’s Board of Trustees.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares. The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends. The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser.
INTEGRITY MID-NORTH AMERICAN RESOURCES FUND
Enclosed is the annual report of the operations for the Integrity Mid-North American Resources Fund (the “Fund”) for the year ended July 31, 2023 (“the period”). The Fund’s portfolio and related financial statements are presented within for your review.
Market Review
The period saw the S&P 500 TR Index return 13.02%. Against a backdrop of high inflation, high interest rates, and global geopolitical turmoil, the market managed to provide double digit returns. This is likely due to the market’s forward looking nature. After a large pullback in the prior period, investors started to look for positive signs that might drive the market higher. The Federal Reserve provided a glimmer of hope as they began slowing the pace of interest rate increases, signaling that the end to the rate hike cycle may be near. While value stocks dominated the first half of the period, growth stocks took over in the back half. Much of the market’s YTD 2023 gains were driven by a handful of growth stocks with triple-digit returns. Rates of over 5% in money market funds drew the attention of income investors. It is yet to be seen if the recent rise in rates will lead to a “soft landing” or if a recession still looms around the corner.
Per the U.S. Bureau of Labor Statistics, the unemployment rate remained relatively flat over the period, ending at 3.5%. The Federal Reserve’s Federal Open Market Committee continued raising interest rates in an attempt to slow inflation. As of the end of the period, the target range for the federal funds rate stood at 5.25% to 5.50%, up from 2.25% to 2.50% at the beginning of the period. The rate of the increases did slow near the end of the period, including one meeting where the rate was not raised at all.
During the period, the Technology sector was the best performer, followed by Communication Services. The market’s recovery rally has been led by certain stocks in these sectors such as Apple, Microsoft, Nvidia, Alphabet, and Meta. The worst performing sectors were Real Estate and Utilities. Real Estate was negatively impacted by the work-from-home trend which has now caused many office buildings to remain well under capacity. Utilities stocks, valued for their generally stable dividends, didn’t look quite as attractive to investors who could find income from money markets, certificates of deposit, and treasuries.
Energy Review
Crude oil trended lower over the course of the third quarter of 2022 due to bearish factors both on the demand and supply side. The global economic outlook was dimmed by waves of aggressive tightening of monetary policy around the world in response to stubbornly high inflation. Additionally, China’s continued adoption of their zero COVID policy reduced demand as well as demand forecasts. On the supply side, planned monthly production increases by OPEC and OECD strategic petroleum reserve (SPR) releases over the third quarter loosened global supply. Towards the end of the third quarter 2022, OPEC shifted to a stance of supporting crude oil prices through a two million barrels of oil per day production cut. This production cut highlights the economic incentive for OPEC to prioritize price over production.
For the third quarter of 2022, the Fund (Class A Shares) returned 0.50% compared to a gain of 2.39% for the S&P 1500 Energy Index, a gain of 0.42% for the iShares S&P Global Clean Energy Index and a loss of -0.44% for the Morningstar Equity Energy category. WTI crude oil decreased 18.68% to end the quarter at $79.49 and Brent crude oil decreased 15.35% to end the quarter at $85.14.
The fourth quarter of 2022 brought increased volatility for commodities and energy equities. Crude oil and energy equities performed well into the midterm elections, however, China’s zero-COVID policy and recessionary concerns’ negative implications for global demand began to pressure crude oil. Seller’s fatigue prompted a recovery in both crude oil and energy equities in December, while natural gas continued to slide on mild winter weather and better than expected inventories. The fundamental backdrop for the energy sector remained strong as global inventories were tight and supply and demand dynamics continued to be supportive. Additionally, OPEC’s price over market share focus has helped put a floor in for crude oil prices.
For the fourth quarter 2022, the Fund (Class A Shares) returned 14.09% compared to a gain of 22.15% for the S&P 1500 Energy Index, a gain of 3.98% for the iShares S&P Global Clean Energy Index, and a gain of 20.25% for the Morningstar Equity Energy category. WTI crude oil increased 4.74% to end the quarter at $80.26 and Brent crude oil increased 6.44% to end the quarter at $85.91.
Over the first two months of 2023, crude oil ebbed and flowed between $74 and $80/barrel. Energy equities predominately followed suit and saw a modest increase through February. In March, turmoil hit the U.S. banking system with the failures of Silicon Valley Bank and Signature Bank. This triggered a massive risk off trade in which crude oil sold off by 17% in less than two weeks. Over the first half of March 2023, energy equities went from being solidly in positive territory for the year to being down over 8% YTD. Both crude oil and energy equities rallied over the last two weeks of March but closed the quarter in negative territory.
For the first quarter of 2023, the Fund (Class A Shares) returned -6.96% compared to a loss of -4.94% for the S&P 1500 Energy Index, a loss of -0.35% for the iShares S&P Global Clean Energy Index, and a loss of -3.72% for the Morningstar Equity Energy category. WTI crude oil decreased 5.94% to end the quarter at $75.67 and Brent crude oil decreased 5.75% to end the quarter at $79.89.
Crude oil trended lower over the second quarter of 2023. Energy equities followed suit through the first two months of the second quarter, however, traded materially higher over the month of June, led by oilfield service. Recession fears drove down oil prices over the quarter which led to a substantial decline in drilling activity. OPEC continued to cut oil production in an effort to bolster oil prices, but were not enough to offset weak demand trends.
For the second quarter of 2023, the Fund (Class A Shares) returned 0.87% compared to a loss of -0.41% for the S&P 1500 Energy Index, a loss of -6.98% for the iShares S&P Global Clean Energy Index, and a gain of 0.23% for the Morningstar Equity Energy category. WTI crude oil decreased 6.36% to end the quarter at $70.64 and Brent crude oil decreased 4.67% to end the quarter at $75.41.
In the month of July, WTI crude prices surged 15% to close the month at $81.32. The Fund (Class A Shares) gained 9.28% in July, 1.33% ahead of the S&P 1500 Energy Index and 0.64% behind of the Morningstar Equity Energy category.
The Fund’s total returns for Class A, C, and I Shares were 6.23%, 5.50%, and 6.65%, respectively, without sales charge, for the year ended July 31, 2023, compared to returns of 18.58%, 12.97%, and 15.87% for the S&P 1500 Energy Index, the S&P 1500 Index, and the Morningstar Equity Energy Category, respectively. Detracting from the Fund’s performance relative to its Morningstar category was an overweight allocation to renewable energy and selection within oilfield service and midstream. Aiding relative performance was an overweight allocation to oilfield service.
If you would like more frequent updates, please visit the Fund’s website at www.integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
The Portfolio Management Team
The views expressed are those of The Portfolio Management Team of Viking Fund Management, LLC (“Viking Fund Management”, “VFM”, or the “Adviser”). The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
INTEGRITY MID-NORTH AMERICAN RESOURCES FUND
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended July 31, 2023
| 1 year | 3 year | 5 year | 10 year | Since Inception* |
Class A Without sales charge | 6.23% | 28.77% | 0.54% | 0.17% | 5.27% |
Class A With sales charge (5.00%) | 0.86% | 26.53% | -0.47% | -0.34% | 5.05% |
Class C Without CDSC | 5.50% | 28.10% | 0.02% | N/A | -2.67% |
Class C With CDSC (1.00%) | 4.50% | 28.10% | 0.02% | N/A | -2.67% |
Class I Without sales charge | 6.65% | 29.39% | 1.04% | N/A | 3.37% |
* April 5, 1999 for Class A; May 1, 2014 for Class C; August 1, 2016 for Class I |
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.56%, 2.06%, and 1.06% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 1.50%, 2.00%, and 1.00% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2023 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 1.50%, 2.00%, and 1.00% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to November 29, 2023 with the approval of the Fund’s Board of Trustees.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares. The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends. The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser. The Fund’s performance prior to November 10, 2008 was achieved under the previous investment strategy, which may have produced different results than the current investment strategy.
INTEGRITY SHORT TERM GOVERNMENT FUND
Enclosed is the annual report of the operations for the Integrity Short Term Government Fund (the “Fund”) for the year ended July 31, 2023. The Fund’s portfolio and related financial statements are presented within for your review.
Market Environment
During the 12-month period, the fixed income market witnessed another sharp spike in Treasury yields across the yield curve with curve flattening significantly between the 2-year and 10-year maturities as the 2-year Treasury yield rose by 1.99% and the 10-year yield increased by 1.31%, reflecting the market’s dramatic pricing out of swift monetary policy normalization by the Fed. As a result, the Bloomberg U.S. Aggregate Bond Index, a broad market fixed income measure, declined -3.37% over the year (following the -9.12% decline over the preceding 12-month period).
Notwithstanding moderating inflation data at year end, a tight labor market along with the Federal Reserve’s pushing back against market speculation of Fed Funds rate cuts in 2023 were key drivers of the interest rate moves by the end of last year. Risk assets started the new year with strong gains across markets. Market expectations that central banks might be closer to an inflection point in their current interest rate hiking cycle drove interest rates lower in January. However, rates reversed course in February as robust economic data prompted market concern that any near term pause in policy rate hikes might be postponed. Market volatility spiked in March with the collapse of Silicon Valley Bank and Signature Bank in the US. Intervention by central banks and banking regulators, including launching of the Bank Term Funding Program (BTFP), lifting of the deposit insurance limit, and the acquisition of First Republic by J.P. Morgan were instrumental in restoring investor confidence in the financial system and prevented further financial fallout.
In total, the Federal Reserve raised the Fed Funds rate by 75bps prior to a pause during the June meeting, as it maintained that measures adopted by regulators should prevent any further financial meltdown as related to the regional bank crisis. The labor market also remained tight and core CPI remained elevated. By mid-May, market focus had shifted towards the prospect of an imminent U.S. government default. Eventually a debt ceiling bill raising the government borrowing limit was passed in early June. The Fed subsequently left their target rates unchanged at the June meeting as Chair Powell indicated that the Federal Open Market Committee (FOMC) was considering a more gradual approach in Fed Funds policy. However, the Summary of Economic Projections showed a median funds rate projection of 5.625% by the end of 2023, an increase of 50bps over the rates that were kept constant at the May meeting. In July, the Federal Reserve raised the Fed Funds rate by an additional 25bps, although the market was expecting that it would be the last hike in the current cycle. Risk assets rallied as a result.
Portfolio Performance and Positioning
The Fund’s total returns for Class I and A shares were -1.97% and -2.08%, respectively, for the year ended July 31, 2023, compared to a return of 0.15% for the ICE BofA Merrill Lynch 1-3 Year Bond Index. The Fund’s performance was driven mainly by the spread widening of the overall Agency MBS market, offset by the relatively stable cash flow and high interest income of our portfolio.
In our view, interest rate volatility-adjusted valuations on Agency MBS have approached levels reached during the Global Financial Crisis. As interest rates stabilize, we see upside for Agency MBS returns. At these levels, Agency MBS yields are attractive relative to similar duration corporate credit and can cushion further potential interest rate increases. Given the very flat yield curve, we prefer short/intermediate maturity securitized products such as Agency MBS. Historically, the Treasury yield curve steepens with longer maturity yields increasing more (or decreasing less) relative to shorter maturity yields as the Fed approaches the end of a hiking cycle. This technical dynamic further supports shorter duration fixed income securities such as Agency MBS in our opinion. Currently, the portfolio is titled towards highly seasoned, short duration Agency MBS. We also believe Agency Commercial Mortgage-Backed Securities offer good relative value.
If you would like more frequent updates, visit our website at www.integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
The Portfolio Management Team
M.D. Sass Investors Services, Inc.
The views expressed are those of M.D. Sass Investor Services, Inc., sub-adviser to the Fund. The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
INTEGRITY SHORT TERM GOVERNMENT FUND
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended July 31, 2023
| 1 year | 3 year | 5 year | 10 year | Since Inception* |
Class A Without sales charge | -2.08% | -2.05% | N/A | N/A | 1.64% |
Class A With sales charge (2.00%) | -4.02% | -2.71% | N/A | N/A | -0.40% |
Class I Without sales charge | -1.97% | -1.82% | 0.16% | 0.55% | 0.68% |
* January 21, 2020 for Class A; June 30, 2011 for Class I |
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) for the year ended July 31, 2023 was 1.33% and 1.08% for Class A and Class I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) for the year ended July 31, 2023 was 0.80% and 0.55% (annualized) for Class A and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2023 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.80% and 0.55% for Class A and I, respectively. This expense limitation agreement may only be terminated or modified prior to November 29, 2023 with the approval of the Fund’s Board of Trustees.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares. The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends.
INTEGRITY DIVIDEND HARVEST FUND
PORTFOLIO MARKET SECTORS July 31, 2023
Financials | 17.1% |
Information Technology | 15.9% |
Health Care | 15.1% |
Consumer Staples | 14.5% |
Energy | 10.1% |
Utilities | 9.1% |
Consumer Discretionary | 5.3% |
Industrials | 4.3% |
Communication Services | 4.1% |
Materials | 3.6% |
Cash Equivalents and Other | 0.9% |
| 100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS July 31, 2023
| | | | | Fair |
| | | Shares | | Value |
COMMON STOCKS (99.1%) | | | | |
| | | | | |
Communication Services (4.1%) | | | | |
BCE Inc | | 125,000 | $ | 5,402,500 |
Verizon Communications Inc | | 247,000 | | 8,417,760 |
| | | | | 13,820,260 |
Consumer Discretionary (5.3%) | | | | |
Genuine Parts Co | | 17,000 | | 2,647,240 |
Home Depot Inc/The | | 18,000 | | 6,009,120 |
McDonald’s Corp | | 4,000 | | 1,172,800 |
Target Corp | | 31,000 | | 4,230,570 |
Whirlpool Corp | | 27,000 | | 3,895,020 |
| | | | | 17,954,750 |
Consumer Staples (14.5%) | | | | |
Altria Group Inc | | 135,000 | | 6,131,700 |
British American Tobacco PLC ADR | | 160,000 | | 5,388,800 |
Coca Cola Co/The | | 113,000 | | 6,998,090 |
Kimberly Clark Corp | | 63,000 | | 8,133,300 |
PepsiCo Inc | | 50,000 | | 9,373,000 |
Philip Morris International Inc | | 90,000 | | 8,974,800 |
Procter & Gamble Co/The | | 25,000 | | 3,907,500 |
| | | | | 48,907,190 |
Energy (10.1%) | | | | |
Devon Energy Corp | | 90,000 | | 4,860,000 |
Enbridge Inc | | 170,000 | | 6,256,000 |
Exxon Mobil Corp | | 53,000 | | 5,683,720 |
Phillips 66 | | 40,000 | | 4,462,000 |
Pioneer Natural Resources Co | | 36,000 | | 8,124,120 |
TransCanada Corp | | 130,000 | | 4,663,100 |
| | | | | 34,048,940 |
Financials (17.1%) | | | | |
Allstate Corp/The | | 50,000 | | 5,634,000 |
Bank of America Corp | | 170,000 | | 5,440,000 |
BlackRock Inc | | 11,000 | | 8,127,350 |
JPMorgan Chase & Co | | 75,000 | | 11,847,000 |
Morgan Stanley | | 100,000 | | 9,156,000 |
Old Republic International Corp | | 110,000 | | 3,032,700 |
PNC Financial Services Group Inc/The | | 21,000 | | 2,874,690 |
Prudential Financial Inc | | 88,000 | | 8,491,120 |
US Bancorp | | 85,000 | | 3,372,800 |
| | | | | 57,975,660 |
Health Care (15.1%) | | | | |
AbbVie Inc | | 142,000 | | 21,240,360 |
Bristol Myers Squibb Co | | 78,000 | | 4,850,820 |
CVS Health Corp | | 35,000 | | 2,614,150 |
Johnson & Johnson | | 38,000 | | 6,366,140 |
Merck & Co Inc | | 81,000 | | 8,638,650 |
Pfizer Inc | | 204,000 | | 7,356,240 |
| | | | | 51,066,360 |
Industrials (4.3%) | | | | |
Caterpillar Inc | | 17,000 | | 4,507,890 |
Illinois Tool Works Inc | | 14,000 | | 3,686,480 |
Lockheed Martin Corp | | 7,000 | | 3,124,590 |
United Parcel Service Inc | | 18,000 | | 3,368,340 |
| | | | | 14,687,300 |
Information Technology (15.9%) | | | | |
Broadcom Inc | | 28,500 | | 25,611,525 |
International Business Machines Corp | | 39,000 | | 5,623,020 |
QUALCOMM Inc | | 78,000 | | 10,309,260 |
Skyworks Solutions Inc | | 40,000 | | 4,574,800 |
Texas Instruments Inc | | 43,000 | | 7,740,000 |
| | | | | 53,858,605 |
Materials (3.6%) | | | | |
Air Products & Chemicals Inc | | 12,000 | | 3,663,960 |
Sociedad Quimica y Minera de Chile SA ADR | | 45,000 | | 3,316,050 |
LyondellBasell Industries NV | | 54,000 | | 5,338,440 |
| | | | | 12,318,450 |
Utilities (9.1%) | | | | |
AES Corp/The | | 210,000 | | 4,542,300 |
American Electric Power Co Inc | | 94,000 | | 7,965,560 |
Duke Energy Corp | | 48,000 | | 4,493,760 |
Entergy Corp | | 73,000 | | 7,497,100 |
NextEra Energy Inc | | 85,000 | | 6,230,500 |
| | | | | 30,729,220 |
| | | | | |
TOTAL COMMON STOCKS (COST: $297,707,583) | | | $ | 335,366,735 |
| | | | | |
SHORT-TERM INVESTMENTS (0.8%) | | | | |
(a) Morgan Stanley Inst’l Liquidity Fund, 5.19% | | 2,673,298 | | 2,673,298 |
TOTAL SHORT-TERM INVESTMENTS (Cost $2,673,298) | | | $ | 2,673,298 |
| | | | | |
TOTAL INVESTMENTS (Cost $300,380,881) (99.9%) | | | | 338,040,033 |
| | | | | |
OTHER ASSETS LESS LIABILITIES (0.1%) | | | $ | 235,598 |
| | | | | |
NET ASSETS (100.0%) | | | $ | 338,275,631 |
| | | | | |
PLC - Public Limited Company |
ADR - American Depositary Receipt |
(a) Seven day yield as of July 31, 2023. |
|
|
The accompanying notes are an integral part of these financial statements. |
INTEGRITY DIVIDEND SUMMIT FUND
PORTFOLIO MARKET SECTORS July 31, 2023
Materials | 19.2% |
Energy | 15.2% |
Financials | 14.7% |
Consumer Staples | 13.8% |
Cash Equivalents and Other | 10.4% |
Health Care | 9.3% |
Information Technology | 6.7% |
Utilities | 4.0% |
Communication Services | 3.4% |
Consumer Discretionary | 3.3% |
| 100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS July 31, 2023
| | | | | Fair |
| | | Shares | | Value |
COMMON STOCKS (89.6%) | | | | |
| | | | | |
Communication Services (3.4%) | | | | |
Verizon Communications Inc | | 640 | $ | 21,811 |
| | | | | |
Consumer Discretionary (3.3%) | | | | |
Best Buy Co Inc | | 140 | | 11,627 |
Whirlpool Corp | | 70 | | 10,098 |
| | | | | 21,725 |
Consumer Staples (13.8%) | | | | |
Altria Group Inc | | 1,000 | | 45,420 |
British American Tobacco PLC ADR | | 500 | | 16,840 |
Philip Morris International Inc | | 230 | | 22,936 |
Walgreens Boots Alliance Inc | | 150 | | 4,495 |
| | | | | 89,691 |
Energy (15.2%) | | | | |
Enbridge Inc | | 600 | | 22,080 |
Oasis Petroleum Inc | | 250 | | 39,210 |
Pembina Pipeline Corp | | 330 | | 10,454 |
Pioneer Natural Resources Co | | 120 | | 27,080 |
| | | | | 98,824 |
Financials (14.7%) | | | | |
PNC Financial Services Group Inc/The | | 130 | | 17,796 |
T Rowe Price Group Inc | | 90 | | 11,093 |
Prudential Financial Inc | | 430 | | 41,491 |
Regions Financial Corp | | 770 | | 15,685 |
US Bancorp | | 240 | | 9,523 |
| | | | | 95,588 |
Health Care (9.3%) | | | | |
AbbVie Inc | | 190 | | 28,420 |
Pfizer Inc | | 600 | | 21,636 |
Sanofi ADR | | 200 | | 10,674 |
| | | | | 60,730 |
Information Technology (6.7%) | | | | |
Broadcom Inc | | 10 | | 8,987 |
International Business Machines Corp | | 200 | | 28,836 |
Seagate Technology PLC | | 90 | | 5,715 |
| | | | | 43,538 |
Materials (19.2%) | | | | |
BHP Group Ltd ADR | | 370 | | 23,180 |
Dow Inc | | 270 | | 15,247 |
Rio Tinto PLC ADR | | 700 | | 46,585 |
Sociedad Quimica y Minera de Chile SA ADR | | 400 | | 29,476 |
LyondellBasell Industries NV | | 110 | | 10,875 |
| | | | | 125,363 |
Utilities (4.0%) | | | | |
Duke Energy Corp | | 150 | | 14,043 |
Entergy Corp | | 120 | | 12,324 |
| | | | | 26,367 |
| | | | | |
TOTAL COMMON STOCKS (COST: $562,289) | | | $ | 583,637 |
| | | | | |
SHORT-TERM INVESTMENTS (10.2%) | | | | |
(a) Morgan Stanley Inst’l Liquidity Fund, 5.19% | | 66,482 | | 66,482 |
TOTAL SHORT-TERM INVESTMENTS (Cost $66,482) | | | $ | 66,482 |
| | | | | |
TOTAL INVESTMENTS (Cost $628,771) (99.8%) | | | | 650,119 |
| | | | | |
OTHER ASSETS LESS LIABILITIES (0.2%) | | | $ | 1,150 |
| | | | | |
NET ASSETS (100.0%) | | | $ | 651,269 |
| | | | | |
PLC - Public Limited Company |
ADR - American Depositary Receipt |
(a) Seven day yield as of July 31, 2023. |
|
|
The accompanying notes are an integral part of these financial statements. |
INTEGRITY GROWTH & INCOME FUND
PORTFOLIO MARKET SECTORS July 31, 2023
Information Technology | 39.5% |
Industrials | 11.9% |
Consumer Discretionary | 10.7% |
Financials | 10.0% |
Cash Equivalents and Other | 9.5% |
Health Care | 7.6% |
Consumer Staples | 4.6% |
Materials | 2.9% |
Communication Services | 1.1% |
Utilities | 1.1% |
Energy | 1.1% |
| 100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS July 31, 2023
| | | | | Fair |
| | | Shares | | Value |
COMMON STOCKS (90.5%) | | | | |
| | | | | |
Communication Services (1.1%) | | | | |
AT&T Inc | | 65,000 | $ | 943,800 |
| | | | | |
Consumer Discretionary (10.7%) | | | | |
Home Depot Inc/The | | 6,000 | | 2,003,040 |
Lowe’s Cos Inc | | 10,000 | | 2,342,700 |
Starbucks Corp | | 22,000 | | 2,234,540 |
Target Corp | | 18,000 | | 2,456,460 |
| | | | | 9,036,740 |
Consumer Staples (4.6%) | | | | |
Kimberly Clark Corp | | 14,000 | | 1,807,400 |
PepsiCo Inc | | 11,000 | | 2,062,060 |
| | | | | 3,869,460 |
Energy (1.1%) | | | | |
Kinder Morgan Inc/DE | | 50,000 | | 885,500 |
| | | | | |
Financials (10.0%) | | | | |
Bank of America Corp | | 30,000 | | 960,000 |
BlackRock Inc | | 3,000 | | 2,216,550 |
JPMorgan Chase & Co | | 12,000 | | 1,895,520 |
PNC Financial Services Group Inc/The | | 10,000 | | 1,368,900 |
S&P Global Inc | | 5,000 | | 1,972,550 |
| | | | | 8,413,520 |
Health Care (7.6%) | | | | |
*Edwards Lifesciences Corp | | 20,000 | | 1,641,400 |
Thermo Fisher Scientific Inc | | 5,000 | | 2,743,300 |
UnitedHealth Group Inc | | 4,000 | | 2,025,480 |
| | | | | 6,410,180 |
Industrials (11.9%) | | | | |
Caterpillar Inc | | 4,500 | | 1,193,265 |
Deere & Co | | 4,000 | | 1,718,400 |
FedEx Corp | | 7,000 | | 1,889,650 |
3M Co | | 8,000 | | 892,000 |
Waste Management Inc | | 13,000 | | 2,129,270 |
Trane Technologies plc | | 11,000 | | 2,193,840 |
| | | | | 10,016,425 |
Information Technology (39.5%) | | | | |
*Advanced Micro Devices Inc | | 17,000 | | 1,944,800 |
Apple Inc | | 20,000 | | 3,929,000 |
Cisco Systems Inc | | 35,000 | | 1,821,400 |
Intel Corp | | 40,000 | | 1,430,800 |
Intuit Inc | | 5,000 | | 2,558,500 |
KLA Tencor Corp | | 6,000 | | 3,083,700 |
Lam Research Corp | | 4,000 | | 2,873,960 |
Mastercard Inc | | 7,000 | | 2,759,960 |
Microsoft Corp | | 6,000 | | 2,015,520 |
NVIDIA Corp | | 10,000 | | 4,672,900 |
QUALCOMM Inc | | 20,000 | | 2,643,400 |
Visa Inc | | 15,000 | | 3,565,950 |
| | | | | 33,299,890 |
Materials (2.9%) | | | | |
Air Products & Chemicals Inc | | 8,000 | | 2,442,640 |
| | | | | |
Utilities (1.1%) | | | | |
Exelon Corp | | 21,000 | | 879,060 |
| | | | | |
TOTAL COMMON STOCKS (COST: $45,381,159) | | | $ | 76,197,215 |
| | | | | |
SHORT-TERM INVESTMENTS (9.5%) | | | | |
(a) Morgan Stanley Inst’l Liquidity Fund, 5.19% | | 7,997,488 | | 7,997,488 |
TOTAL SHORT-TERM INVESTMENTS (Cost $7,997,488) | | | $ | 7,997,488 |
| | | | | |
TOTAL INVESTMENTS (Cost $53,378,647) (100.0%) | | | | 84,194,703 |
| | | | | |
OTHER ASSETS LESS LIABILITIES (0.0%) | | | $ | 14,954 |
| | | | | |
NET ASSETS (100.0%) | | | $ | 84,209,657 |
| |
*Non-income producing |
PLC - Public Limited Company |
(a) Seven day yield as of July 31, 2023. |
|
|
The accompanying notes are an integral part of these financial statements. |
INTEGRITY HIGH INCOME FUND
PORTFOLIO MARKET SECTORS July 31, 2023
Consumer Discretionary | 26.1% |
Industrials | 14.6% |
Communication Services | 12.3% |
Energy | 12.1% |
Health Care | 10.4% |
Materials | 5.9% |
Information Technology | 5.6% |
Consumer Staples | 5.1% |
Cash Equivalents and Other | 4.1% |
Financials | 2.1% |
Utilities | 1.1% |
Real Estate | 0.6% |
| 100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS July 31, 2023
| | | Principal | | Fair |
| | | Amount | | Value |
CORPORATE BONDS (94.4%) | | | | |
| | | | | |
Communication Services (12.0%) | | | | |
Altice France SA/France - 144A 5.500% 01/15/2028 Callable @ 101.375 09/15/2023 | | 200,000 | $ | 146,721 |
*(1) AMC Entertainment Holdings Inc - 144A 10.000% 06/15/2026 Callable @ 106.000 06/15/2023 | | 27,692 | | 19,081 |
Arches Buyer Inc - 144A 4.250% 06/01/2028 Callable @ 102.125 12/01/2023 | | 70,000 | | 60,904 |
Arches Buyer Inc - 144A 6.125% 12/01/2028 Callable @ 103.063 12/01/2023 | | 17,000 | | 14,641 |
Centerfield Media Parent Inc - 144A 6.625% 08/01/2026 Callable @ 103.313 08/01/2023 | | 40,000 | | 29,807 |
CenturyLink Inc - 144A 4.000% 02/15/2027 Callable @ 101.000 02/15/2024 | | 315,000 | | 207,157 |
Cinemark USA Inc - 144A 5.250% 07/15/2028 Callable @ 102.625 07/15/2024 | | 45,000 | | 39,618 |
Cinemark USA Inc - 144A 8.750% 05/01/2025 Callable @ 100.000 05/01/2024 | | 16,000 | | 16,160 |
CSC Holdings LLC - 144A 5.750% 01/15/2030 Callable @ 102.875 01/15/2025 | | 200,000 | | 103,546 |
CSC Holdings LLC - 144A 6.500% 02/01/2029 Callable @ 103.250 02/01/2024 | | 400,000 | | 339,728 |
(4) Diamond Sports Group LLC / Diamond Sports Finance Co - 144A 5.375% 08/15/2026 Callable @ 101.344 08/15/2023 | | 45,000 | | 1,406 |
DIRECTV Holdings LLC / DIRECTV Financing Co Inc - 144A 5.875% 08/15/2027 Callable @ 104.406 08/15/2023 | | 242,000 | | 218,315 |
DISH Network Corp 2.375% 03/15/2024 | | 100,000 | | 91,750 |
DISH Network Corp 3.375% 08/15/2026 | | 73,000 | | 40,479 |
*DISH Network Corp - 144A 11.750% 11/15/2027 Callable @ 100.000 05/15/2025 | | 222,000 | | 223,677 |
Entercom Media Corp - 144A 6.500% 05/01/2027 Callable @ 101.625 05/01/2024 | | 130,000 | | 1,950 |
Frontier Communications Holdings LLC 5.875% 11/01/2029 Callable @ 102.938 11/01/2024 | | 14,737 | | 10,806 |
Frontier Communications Corp - 144A 5.000% 05/01/2028 Callable @ 102.500 05/01/2024 | | 185,000 | | 156,816 |
Frontier Communications Corp - 144A 5.875% 10/15/2027 Callable @ 102.938 10/15/2023 | | 4,000 | | 3,664 |
Frontier Communications Corp - 144A 6.750% 05/01/2029 Callable @ 103.375 05/01/2024 | | 9,000 | | 6,956 |
Frontier Communications Holdings LLC - 144A 6.000% 01/15/2030 Callable @ 103.000 10/15/2024 | | 27,000 | | 19,610 |
Frontier Communications Holdings LLC - 144A 8.750% 05/15/2030 Callable @ 140.375 05/15/2025 | | 49,000 | | 47,277 |
Gannett Holdings LLC - 144A 6.000% 11/01/2026 Callable @ 103.000 11/01/2023 | | 47,000 | | 40,455 |
Gray Escrow II Inc - 144A 5.375% 11/15/2031 Callable @ 102.688 11/15/2026 | | 44,000 | | 30,140 |
Gray Escrow Inc - 144A 7.000% 05/15/2027 Callable @ 101.750 05/15/2024 | | 72,000 | | 62,280 |
Gray Television Inc - 144A 4.750% 10/15/2030 Callable @ 102.375 10/15/2025 | | 158,000 | | 109,085 |
iHeartCommunications Inc 6.375% 05/01/2026 Callable @ 100.000 05/01/2024 | | 176,189 | | 152,314 |
iHeartCommunications Inc 8.375% 05/01/2027 Callable @ 100.000 05/01/2024 | | 164,489 | | 113,159 |
iHeartCommunications Inc - 144A 5.250% 08/15/2027 Callable @ 101.313 08/15/2023 | | 165,000 | | 129,818 |
+^(3) Intelsat Emergence SA Escrow .000% 07/15/2025 | | 90,000 | | 9 |
+^(3) Intelsat Emergence SA Escrow .000% 08/01/2023 | | 146,000 | | 15 |
+^(3) Intelsat Emergence SA Escrow .000% 10/15/2024 | | 172,000 | | 17 |
Intelsat SA - 144A 6.500% 03/15/2030 Callable @ 100.000 03/15/2025 | | 290,000 | | 264,908 |
Level 3 Financing Inc - 144A 3.625% 01/15/2029 Callable @ 101.813 01/15/2024 | | 39,000 | | 25,735 |
Level 3 Financing Inc - 144A 4.250% 07/01/2028 Callable @ 101.063 07/01/2024 | | 45,000 | | 31,840 |
Level 3 Financing Inc - 144A 4.625% 09/15/2027 Callable @ 101.156 09/15/2023 | | 95,000 | | 72,151 |
Live Nation Entertainment Inc - 144A 3.750% 01/15/2028 Callable @ 102.813 01/15/2024 | | 37,000 | | 33,143 |
Live Nation Entertainment Inc - 144A 4.750% 10/15/2027 Callable @ 102.375 10/15/2023 | | 185,000 | | 171,745 |
Live Nation Entertainment Inc - 144A 5.625% 03/15/2026 Callable @ 100.000 03/15/2024 | | 70,000 | | 68,197 |
Live Nation Entertainment Inc - 144A 6.500% 05/15/2027 Callable @ 103.250 05/15/2024 | | 273,000 | | 274,368 |
Lumen Tech Inc - 144A 4.500% 01/15/2029 Callable @ 102.250 01/15/2024 | | 40,000 | | 16,400 |
Lumen Tech Inc - 144A 5.125% 12/15/2026 Callable @ 101.281 12/15/2023 | | 247,000 | | 128,440 |
Lumen Technologies Inc - 144A 5.375% 06/15/2029 Callable @ 102.688 06/15/2024 | | 70,000 | | 31,048 |
Mav Acquisition Corp - 144A 5.750% 08/01/2028 Callable @ 102.875 08/01/2024 | | 75,000 | | 65,894 |
Midas OpCo Holdings LLC - 144A 5.625% 08/15/2029 Callable @ 102.813 08/15/2024 | | 98,000 | | 83,385 |
Midcontinent Communications / Midcontinent Finance Corp - 144A 5.375% 08/15/2027 Callable @ 101.344 08/15/2023 | | 50,000 | | 47,161 |
(4) National CineMedia LLC - 144A 5.875% 04/15/2028 Callable @ 101.958 04/15/2024 | | 25,000 | | 7,750 |
News Corp - 144A 3.875% 05/15/2029 Callable @ 100.000 05/15/2024 | | 87,000 | | 76,828 |
News Corp - 144A 5.125% 02/15/2032 Callable @ 102.563 02/15/2027 | | 40,000 | | 36,600 |
Nexstar Broadcasting Inc - 144A 4.750% 11/01/2028 Callable @ 102.375 11/01/2023 | | 191,000 | | 168,349 |
Nexstar Escrow Inc - 144A 5.625% 07/15/2027 Callable @ 101.406 07/15/2024 | | 304,000 | | 285,836 |
SBA Communications Corp 3.125% 02/01/2029 Callable @ 101.563 02/01/2024 | | 58,000 | | 48,886 |
Scripps Escrow Inc - 144A 5.875% 07/15/2027 Callable @ 100.469 07/15/2024 | | 50,000 | | 41,471 |
(5) Shutterfly Finance LLC - 144A 8.500% (4.2500%) 10/01/2027 Callable @ 100.000 06/09/2025 | | 171,000 | | 111,076 |
Shutterfly Finance LLC - 144A 9.750% 10/01/2027 Callable @ 100.000 06/09/2025 | | 20,730 | | 20,635 |
Sinclair Television Group Inc - 144A 4.125% 12/01/2030 Callable @ 102.063 12/01/2025 | | 65,000 | | 42,379 |
Sirius XM Radio Inc - 144A 3.875% 09/01/2031 Callable @ 101.938 09/01/2026 | | 65,000 | | 50,905 |
Sirius XM Radio Inc - 144A 4.000% 07/15/2028 Callable @ 102.000 07/15/2024 | | 121,000 | | 105,280 |
Sirius XM Radio Inc - 144A 5.500% 07/01/2029 Callable @ 102.750 07/01/2024 | | 289,000 | | 262,940 |
*’Sprint Corp 7.625% 02/15/2025 Callable @ 100.000 11/15/2024 | | 329,000 | | 336,568 |
Sprint Corp 7.625% 03/01/2026 Callable @ 100.000 11/01/2025 | | 190,000 | | 197,915 |
Telecom Italia Capital SA 6.000% 09/30/2034 | | 100,000 | | 80,949 |
Telecom Italia Capital SA 6.375% 11/15/2033 | | 12,000 | | 10,147 |
United States Cellular Corp 6.700% 12/15/2033 | | 105,000 | | 91,088 |
Univision Communications Inc - 144A 4.500% 05/01/2029 Callable @ 102.250 05/01/2024 | | 44,000 | | 38,073 |
Univision Communications Inc - 144A 6.625% 06/01/2027 Callable @ 101.656 06/01/2024 | | 15,000 | | 14,606 |
Univision Communications Inc - 144A 7.375% 06/30/2030 Callable @ 103.688 06/30/2025 | | 82,000 | | 79,810 |
#Univision Communications Inc - 144A 8.000% 08/15/2028 Callable @ 104.000 08/15/2025 | | 21,000 | | 21,214 |
| | | | $ | 5,881,081 |
Consumer Discretionary (25.1%) | | | | |
1011778 BC ULC / New Red Finance Inc - 144A 3.500% 02/15/2029 Callable @ 101.750 02/15/2024 | | 17,000 | | 14,939 |
1011778 BC ULC / New Red Finance Inc - 144A 3.875% 01/15/2028 Callable @ 100.969 09/15/2023 | | 73,000 | | 66,852 |
1011778 BC ULC / New Red Finance Inc - 144A 4.000% 10/15/2030 Callable @ 102.000 10/15/2025 | | 140,000 | | 120,320 |
Adient Global Holdings Ltd - 144A 7.000% 04/15/2028 Callable @ 103.500 04/15/2025 | | 3,000 | | 3,022 |
Adient Global Holdings Ltd - 144A 8.250% 04/15/2031 Callable @ 104.125 04/16/2026 | | 77,000 | | 79,304 |
Allied Universal Holdco LLC / Allied Universal Finance Corp - 144A 6.625% 07/15/2026 Callable @ 100.000 07/15/2024 | | 51,000 | | 48,694 |
Allison Transmission Inc - 144A 5.875% 06/01/2029 Callable @ 102.938 06/01/2024 | | 109,000 | | 105,455 |
American Axle & Manufacturing Inc 5.000% 10/01/2029 Callable @ 102.500 10/01/2024 | | 16,000 | | 13,652 |
American Axle & Manufacturing Inc 6.250% 03/15/2026 | | 57,000 | | 55,585 |
American Axle & Manufacturing Inc 6.500% 04/01/2027 Callable @ 101.083 04/01/2024 | | 83,000 | | 80,797 |
American Axle & Manufacturing Inc 6.875% 07/01/2028 | | 167,000 | | 157,202 |
Aramark Services Inc - 144A 5.000% 02/01/2028 Callable @ 101.666 02/01/2024 | | 135,000 | | 127,173 |
Asbury Automotive Group Inc 4.500% 03/01/2028 Callable @ 101.250 03/01/2024 | | 77,000 | | 70,467 |
Asbury Automotive Group Inc 4.750% 03/01/2030 Callable @ 102.375 03/01/2025 | | 11,000 | | 9,715 |
Asbury Automotive Group Inc - 144A 4.625% 11/15/2029 Callable @ 102.313 11/15/2024 | | 158,000 | | 139,784 |
Bath & Body Works Inc - 144A 6.625% 10/01/2030 Callable @ 103.313 10/01/2025 | | 30,000 | | 28,986 |
Boyne USA Inc - 144A 4.750% 05/15/2029 Callable @ 102.375 05/15/2024 | | 86,000 | | 78,526 |
Caesars Entertainment Inc - 144A 4.625% 10/15/2029 Callable @ 102.313 10/15/2024 | | 79,000 | | 69,541 |
Caesars Entertainment Inc - 144A 8.125% 07/01/2027 Callable @ 102.031 07/01/2024 | | 125,000 | | 128,215 |
Carnival Corp - 144A 4.000% 08/01/2028 Callable @ 100.000 05/01/2028 | | 64,000 | | 56,913 |
Carnival Corp - 144A 5.750% 03/01/2027 Callable @ 100.000 12/01/2026 | | 86,000 | | 79,557 |
Carnival Corp - 144A 6.000% 05/01/2029 Callable @ 103.000 11/01/2024 | | 19,000 | | 17,079 |
Carnival Corp - 144A 9.875% 08/01/2027 Callable @ 104.938 02/01/2024 | | 45,000 | | 47,047 |
Carnival Corp - 144A 10.500% 02/01/2026 Callable @ 105.250 08/01/2023 | | 20,000 | | 21,082 |
Carnival Holdings Bermuda Ltd - 144A 10.375% 05/01/2028 Callable @ 105.188 05/01/2025 | | 49,000 | | 53,477 |
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 4.250% 01/15/2034 Callable @ 102.125 01/15/2028 | | 75,000 | | 57,688 |
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 4.500% 06/01/2033 Callable @ 102.250 06/01/2027 | | 130,000 | | 102,869 |
*CCO Holdings LLC / CCO Holdings Capital Corp - 144A 4.250% 02/01/2031 Callable @ 102.125 07/01/2025 | | 213,000 | | 175,119 |
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 4.500% 08/15/2030 Callable @ 102.250 02/15/2025 | | 289,000 | | 244,531 |
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 4.750% 02/01/2032 Callable @ 102.375 02/01/2027 | | 36,000 | | 29,705 |
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 4.750% 03/01/2030 Callable @ 102.375 09/01/2024 | | 115,000 | | 99,696 |
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 5.000% 02/01/2028 Callable @ 101.667 08/01/2023 | | 426,000 | | 393,688 |
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 5.125% 05/01/2027 | | 504,000 | | 472,844 |
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 5.375% 06/01/2029 Callable @ 102.688 06/01/2024 | | 108,000 | | 98,699 |
CD&R Smokey Buyer Inc - 144A 6.750% 07/15/2025 Callable @ 100.000 07/15/2024 | | 109,000 | | 102,476 |
Cedar Fair LP 5.250% 07/15/2029 Callable @ 102.625 07/15/2024 | | 40,000 | | 35,873 |
Cedar Fair LP / Canada’s Wonderland Co / Magnum Management Corp / Millennium Op 5.375% 04/15/2027 Callable @ 100.896 04/15/2024 | | 40,000 | | 37,801 |
Cedar Fair LP / Canada’s Wonderland Co / Magnum Management Corp / Millennium Op - 144A 5.500% 05/01/2025 | | 123,000 | | 121,746 |
Clarios Global LP - 144A 6.750% 05/15/2025 | | 45,000 | | 45,107 |
Clarios Global LP / Clarios US Finance Co - 144A 6.750% 05/15/2028 Callable @ 103.375 05/15/2025 | | 57,000 | | 57,249 |
Clarios Global LP / Clarios US Finance Co - 144A 8.500% 05/15/2027 Callable @ 100.000 05/15/2024 | | 139,000 | | 140,736 |
Clear Channel Outdoor Holdings Inc - 144A 7.500% 06/01/2029 Callable @ 103.750 06/01/2024 | | 88,000 | | 70,062 |
Clear Channel Outdoor Holdings Inc - 144A 7.750% 04/15/2028 Callable @ 103.875 04/15/2024 | | 179,000 | | 149,685 |
Clear Channel Worldwide Holdings Inc - 144A 5.125% 08/15/2027 Callable @ 101.281 08/15/2023 | | 241,000 | | 221,361 |
(5) Cooper- 144A Standard Automotive Inc - 5.625% (10.625%) 05/15/2027 Callable @ 102.810 01/31/2025 | | 171,720 | | 103,152 |
(5) Cooper- 144A Standard Automotive Inc - 13.500% (4.5%) 03/31/2027 Callable @ 104.500 01/31/2025 | | 287,627 | | 293,490 |
Dana Inc 5.375% 11/15/2027 Callable @ 101.344 11/15/2023 | | 20,000 | | 19,153 |
Dana Inc 5.625% 06/15/2028 Callable @ 101.406 06/15/2024 | | 67,000 | | 63,592 |
*DISH DBS Corp 5.875% 11/15/2024 | | 536,000 | | 492,052 |
DISH DBS Corp 7.750% 07/01/2026 | | 183,000 | | 118,950 |
DISH DBS Corp - 144A 5.250% 12/01/2026 Callable @ 100.000 06/01/2026 | | 330,000 | | 270,801 |
DISH DBS Corp - 144A 5.750% 12/01/2028 Callable @ 100.000 12/01/2027 | | 60,000 | | 46,168 |
Dornoch Debt Merger Sub Inc - 144A 6.625% 10/15/2029 Callable @ 103.313 10/15/2024 | | 110,000 | | 94,316 |
*Ford Motor Credit Co LLC 3.375% 11/13/2025 Callable @ 100.000 10/13/2025 | | 200,000 | | 186,990 |
*Ford Motor Credit Co LLC 4.271% 01/09/2027 | | 200,000 | | 186,702 |
Ford Motor Credit Co LLC 4.542% 08/01/2026 Callable @ 100.000 06/01/2026 | | 200,000 | | 189,025 |
*Ford Motor Credit Co LLC 4.687% 06/09/2025 Callable @ 100.000 04/09/2025 | | 670,000 | | 649,484 |
*Ford Motor Credit Co LLC 5.125% 06/16/2025 Callable @ 100.000 05/16/2025 | | 400,000 | | 389,478 |
Gap Inc/The - 144A 3.625% 10/01/2029 Callable @ 101.813 10/01/2024 | | 98,000 | | 73,069 |
Garda World Security Corp - 144A 4.625% 02/15/2027 Callable @ 101.156 02/15/2024 | | 30,000 | | 27,704 |
Garda World Security Corp - 144A 6.000% 06/01/2029 Callable @ 103.000 06/01/2024 | | 59,000 | | 49,097 |
Garda World Security Corp - 144A 9.500% 11/01/2027 Callable @ 102.375 11/01/2023 | | 80,000 | | 78,308 |
GLP Capital LP / GLP Financing II Inc 5.250% 06/01/2025 | | 17,000 | | 16,736 |
Goodyear Tire & Rubber Co/The 5.000% 07/15/2029 Callable @ 100.000 04/15/2029 | | 116,000 | | 106,961 |
Goodyear Tire & Rubber Co/The 5.250% 04/30/2031 Callable @ 100.000 01/30/2031 | | 31,000 | | 28,103 |
Goodyear Tire & Rubber Co/The 5.250% 07/15/2031 Callable @ 100.000 04/15/2031 | | 70,000 | | 62,301 |
Hanesbrands Inc - 144A 4.875% 05/15/2026 | | 35,000 | | 32,796 |
Hanesbrands Inc - 144A 9.000% 02/15/2031 Callable @ 104.500 02/15/2026 | | 25,000 | | 25,471 |
Hilton Domestic Operating Co Inc 4.875% 01/15/2030 Callable @ 102.438 01/15/2025 | | 54,000 | | 50,625 |
Hilton Domestic Operating Co Inc - 144A 3.750% 05/01/2029 Callable @ 101.875 05/01/2024 | | 18,000 | | 16,038 |
Hilton Domestic Operating Co Inc - 144A 5.750% 05/01/2028 | | 38,000 | | 37,459 |
Hilton Worldwide Finance LLC / Hilton Worldwide Finance Corp 4.875% 04/01/2027 Callable @ 100.609 04/01/2024 | | 68,000 | | 65,706 |
Hughes Satellite Systems Corp 6.625% 08/01/2026 | | 20,000 | | 18,057 |
L Brands Inc 6.750% 07/01/2036 | | 35,000 | | 31,834 |
Marriott Ownership Resorts Inc - 144A 4.500% 06/15/2029 Callable @ 102.250 06/15/2024 | | 21,000 | | 18,204 |
Mattel Inc - 144A 5.875% 12/15/2027 Callable @ 102.938 12/15/2023 | | 68,000 | | 66,752 |
MGM Growth Properties Operating Partnership LP / MGP Finance Co Issuer Inc - 144A 3.875% 02/15/2029 | | 40,000 | | 35,488 |
MGM Growth Properties Operating Partnership LP / MGP Finance Co Issuer Inc - 144A 4.500% 01/15/2028 Callable @ 100.000 10/15/2027 | | 10,000 | | 9,300 |
MGM Growth Properties Operating Partnership LP / MGP Finance Co Issuer Inc - 144A 4.500% 09/01/2026 Callable @ 100.000 06/01/2026 | | 15,000 | | 14,206 |
MGM Growth Properties Operating Partnership LP / MGP Finance Co Issuer Inc - 144A 4.625% 06/15/2025 Callable @ 100.000 03/15/2025 | | 42,000 | | 40,779 |
MGM Growth Properties Operating Partnership LP / MGP Finance Co Issuer Inc - 144A 5.625% 05/01/2024 Callable @ 100.000 02/01/2024 | | 30,000 | | 29,844 |
MGM Resorts International 5.500% 04/15/2027 Callable @ 100.000 01/15/2027 | | 80,000 | | 77,079 |
*MGM Resorts International 5.750% 06/15/2025 Callable @ 100.000 03/15/2025 | | 195,000 | | 192,827 |
MGM Resorts International 6.750% 05/01/2025 Callable @ 100.000 05/01/2024 | | 25,000 | | 25,109 |
Newell Brands Inc 4.200% 04/01/2026 Callable @ 100.000 01/01/2026 | | 112,000 | | 106,043 |
Newell Brands Inc 5.625% 04/01/2036 Callable @ 100.000 10/01/2035 | | 10,000 | | 8,693 |
Newell Brands Inc 6.375% 09/15/2027 Callable @ 100.000 06/15/2027 | | 35,000 | | 34,431 |
Newell Brands Inc 6.625% 09/15/2029 Callable @ 100.000 06/15/2029 | | 25,000 | | 24,955 |
NMG Holding Co Inc / Neiman Marcus Group LLC - 144A 7.125% 04/01/2026 Callable @ 101.781 04/01/2024 | | 175,000 | | 163,548 |
Nordstrom Inc 4.375% 04/01/2030 Callable @ 100.000 01/01/2030 | | 2,000 | | 1,675 |
*Panther BF Aggregator 2 LP / Panther Finance Co Inc - 144A 6.250% 05/15/2026 Callable @ 100.000 05/15/2024 | | 132,000 | | 131,905 |
*PetSmart Inc / PetSmart Finance Corp - 144A 4.750% 02/15/2028 Callable @ 102.375 02/15/2024 | | 250,000 | | 229,266 |
PM General Purchaser LLC - 144A 9.500% 10/01/2028 Callable @ 104.750 10/01/2023 | | 72,000 | | 70,562 |
Realogy Group LLC / Realogy Co- 144A Issuer Corp - 5.250% 04/15/2030 Callable @ 102.625 04/15/2025 | | 107,000 | | 77,092 |
Royal Caribbean Cruises Ltd - 144A 7.250% 01/15/2030 Callable @ 103.625 12/15/2025 | | 47,000 | | 47,503 |
Royal Caribbean Cruises Ltd - 144A 8.250% 01/15/2029 Callable @ 104.125 04/01/2025 | | 63,000 | | 65,796 |
Royal Caribbean Cruises Ltd - 144A 9.250% 01/15/2029 Callable @ 104.625 04/01/2025 | | 63,000 | | 67,071 |
Royal Caribbean Cruises Ltd - 144A 11.500% 06/01/2025 | | 30,000 | | 31,788 |
Royal Caribbean Cruises Ltd - 144A 11.625% 08/15/2027 Callable @ 105.813 08/15/2024 | | 135,000 | | 147,400 |
*Ryman Hospitality Properties Inc 4.750% 10/15/2027 Callable @ 102.375 10/15/2023 | | 170,000 | | 159,853 |
Service Corp International/US 3.375% 08/15/2030 Callable @ 101.688 08/15/2025 | | 67,000 | | 55,864 |
Service Corp International/US 4.000% 05/15/2031 Callable @ 102.000 05/15/2026 | | 3,000 | | 2,558 |
Service Corp International/US 4.625% 12/15/2027 Callable @ 101.542 12/15/2023 | | 19,000 | | 18,003 |
Service Corp International/US 5.125% 06/01/2029 Callable @ 102.563 06/01/2024 | | 18,000 | | 17,100 |
Sirius XM Radio Inc - 144A 5.000% 08/01/2027 Callable @ 101.667 08/01/2023 | | 186,000 | | 172,622 |
Six Flags Entertainment Corp - 144A 5.500% 04/15/2027 Callable @ 100.917 04/15/2024 | | 35,000 | | 33,150 |
Six Flags Theme Parks Inc - 144A 7.000% 07/01/2025 Callable @ 100.000 07/01/2024 | | 63,000 | | 63,153 |
Sonic Automotive Inc - 144A 4.625% 11/15/2029 Callable @ 102.313 11/15/2024 | | 64,000 | | 54,884 |
Staples Inc - 144A 7.500% 04/15/2026 Callable @ 100.000 04/15/2024 | | 230,000 | | 189,983 |
Staples Inc - 144A 10.750% 04/15/2027 Callable @ 100.000 04/15/2024 | | 100,000 | | 57,192 |
Station Casinos LLC - 144A 4.500% 02/15/2028 Callable @ 101.125 02/15/2024 | | 140,000 | | 125,994 |
Superior Plus LP / Superior General Partner Inc - 144A 4.500% 03/15/2029 Callable @ 102.250 03/15/2024 | | 56,000 | | 49,197 |
Tempur Sealy International Inc - 144A 3.875% 10/15/2031 Callable @ 101.938 10/15/2026 | | 34,000 | | 27,519 |
Tempur Sealy International Inc - 144A 4.000% 04/15/2029 Callable @ 102.000 04/15/2024 | | 144,000 | | 124,826 |
US Foods Inc - 144A 4.625% 06/01/2030 Callable @ 102.313 06/01/2025 | | 68,000 | | 61,162 |
US Foods Inc - 144A 4.750% 02/15/2029 Callable @ 102.375 02/15/2024 | | 15,000 | | 13,794 |
Vail Resorts Inc - 144A 6.250% 05/15/2025 | | 104,000 | | 104,093 |
VICI Properties LP / VICI Note Co Inc - 144A 4.250% 12/01/2026 Callable @ 101.063 12/01/2023 | | 113,000 | | 106,355 |
VICI Properties LP / VICI Note Co Inc - 144A 3.750% 02/15/2027 | | 90,000 | | 83,127 |
VICI Properties LP / VICI Note Co Inc - 144A 4.625% 12/01/2029 Callable @ 102.313 12/01/2024 | | 118,000 | | 107,826 |
Videotron Ltd - 144A 5.375% 06/15/2024 Callable @ 100.000 03/15/2024 | | 45,000 | | 44,584 |
Videotron Ltd / Videotron Ltee - 144A 5.125% 04/15/2027 Callable @ 100.854 04/15/2024 | | 95,000 | | 91,606 |
Vista Outdoor Inc - 144A 4.500% 03/15/2029 Callable @ 102.250 03/15/2024 | | 149,000 | | 126,650 |
Weekley Homes LLC / Weekley Finance Corp - 144A 4.875% 09/15/2028 Callable @ 102.438 09/15/2023 | | 49,000 | | 43,980 |
William Carter Co/The - 144A 5.625% 03/15/2027 Callable @ 100.000 03/15/2024 | | 85,000 | | 82,866 |
Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp - 144A 5.250% 05/15/2027 Callable @ 100.000 02/15/2027 | | 25,000 | | 23,760 |
Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp - 144A 5.500% 03/01/2025 Callable @ 100.000 12/01/2024 | | 157,000 | | 154,044 |
Wynn Resorts Finance LLC / Wynn Resorts Capital Corp - 144A 5.125% 10/01/2029 | | 203,000 | | 183,699 |
| | | | $ | 12,250,697 |
Consumer Staples (5.1%) | | | | |
Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC - 144A 3.250% 03/15/2026 Callable @ 100.813 09/15/2023 | | 33,000 | | 30,671 |
Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC - 144A 3.500% 03/15/2029 Callable @ 101.750 09/15/2023 | | 117,000 | | 101,856 |
Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC - 144A 4.625% 01/15/2027 Callable @ 102.313 01/15/2024 | | 265,000 | | 251,225 |
Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC - 144A 4.875% 02/15/2030 | | 30,000 | | 27,488 |
Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC - 144A 5.875% 02/15/2028 Callable @ 102.938 08/15/2023 | | 76,000 | | 74,005 |
Central Garden & Pet Co 4.125% 10/15/2030 Callable @ 102.063 10/15/2025 | | 49,000 | | 41,646 |
Central Garden & Pet Co 5.125% 02/01/2028 Callable @ 101.708 01/01/2024 | | 183,000 | | 172,609 |
Central Garden & Pet Co - 144A 4.125% 04/30/2031 Callable @ 102.063 04/30/2026 | | 8,000 | | 6,677 |
Coty Inc - 144A 5.000% 04/15/2026 Callable @ 101.250 04/15/2024 | | 84,000 | | 80,968 |
Coty Inc - 144A 6.500% 04/15/2026 Callable @ 100.000 04/15/2024 | | 6,000 | | 5,951 |
Edgewell Personal Care Co - 144A 4.125% 04/01/2029 Callable @ 102.063 04/01/2024 | | 25,000 | | 21,869 |
Edgewell Personal Care Co - 144A 5.500% 06/01/2028 Callable @ 101.375 06/01/2024 | | 130,000 | | 122,954 |
Energizer Holdings Inc - 144A 4.375% 03/31/2029 Callable @ 102.188 09/30/2023 | | 78,000 | | 67,612 |
Energizer Holdings Inc - 144A 4.750% 06/15/2028 Callable @ 101.188 06/15/2024 | | 239,000 | | 214,677 |
Energizer Holdings Inc - 144A 6.500% 12/31/2027 Callable @ 103.250 08/31/2024 | | 37,000 | | 35,974 |
HFC Prestige Products Inc/HFC Prestige International US LLC - 144A 4.750% 01/15/2029 Callable @ 102.375 01/15/2025 | | 60,000 | | 55,646 |
+^(3) High Ridge Brands Co 8.875% 03/15/2025 | | 60,000 | | 0 |
Lamb Weston Holdings Inc - 144A 4.125% 01/31/2030 Callable @ 102.063 01/31/2025 | | 79,000 | | 69,718 |
Performance Food Group Inc - 144A 4.250% 08/01/2029 Callable @ 102.125 08/01/2024 | | 80,000 | | 71,066 |
Performance Food Group Inc - 144A 5.500% 10/15/2027 Callable @ 101.375 10/15/2023 | | 90,000 | | 87,138 |
Performance Food Group Inc - 144A 6.875% 05/01/2025 | | 90,000 | | 89,985 |
Post Holdings Inc - 144A 4.625% 04/15/2030 Callable @ 102.313 04/15/2025 | | 65,000 | | 57,310 |
Post Holdings Inc - 144A 5.500% 12/15/2029 Callable @ 102.750 12/15/2024 | | 39,000 | | 36,214 |
Post Holdings Inc - 144A 5.625% 01/15/2028 Callable @ 101.875 12/01/2023 | | 122,000 | | 117,970 |
Post Holdings Inc - 144A 5.750% 03/01/2027 Callable @ 100.958 03/01/2024 | | 45,000 | | 44,102 |
Reynolds Group Issuer Inc / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu - 144A 4.000% 10/15/2027 Callable @ 102.000 10/15/2023 | 203,000 | | 182,820 |
Rite Aid Corp - 144A 7.500% 07/01/2025 Callable @ 100.000 07/01/2024 | | 104,000 | | 61,360 |
*Rite Aid Corp - 144A 8.000% 11/15/2026 Callable @ 102.000 01/15/2024 | | 254,000 | | 127,000 |
Spectrum Brands Inc - 144A 3.875% 03/15/2031 Callable @ 101.938 03/15/2026 | | 19,000 | | 15,673 |
Spectrum Brands Inc - 144A 5.000% 10/01/2029 Callable @ 102.500 10/01/2024 | | 138,000 | | 124,200 |
Spectrum Brands Inc - 144A 5.500% 07/15/2030 Callable @ 102.750 07/15/2025 | | 99,000 | | 90,467 |
| | | | $ | 2,486,851 |
Energy (11.9%) | | | | |
Antero Midstream Partners LP - 144A 5.375% 06/15/2029 Callable @ 102.688 06/15/2024 | | 86,000 | | 80,620 |
Antero Midstream Partners LP / Antero Midstream Finance Corp - 144A 5.750% 01/15/2028 Callable @ 101.917 01/15/2024 | | 85,000 | | 81,733 |
Antero Midstream Partners LP / Antero Midstream Finance Corp - 144A 5.750% 03/01/2027 Callable @ 100.958 03/01/2024 | | 5,000 | | 4,836 |
Antero Midstream Partners LP / Antero Midstream Finance Corp - 144A 7.875% 05/15/2026 Callable @ 101.969 05/15/2024 | | 73,000 | | 74,536 |
Antero Resources Corp - 144A 5.375% 03/01/2030 Callable @ 102.688 03/01/2025 | | 23,000 | | 21,446 |
Antero Resources Corp - 144A 7.625% 02/01/2029 Callable @ 103.813 02/01/2024 | | 46,000 | | 47,114 |
Antero Resources Corp - 144A 8.375% 07/15/2026 Callable @ 104.188 01/15/2024 | | 79,000 | | 82,421 |
Archrock Partners LP / Archrock Partners Finance Corp - 144A 6.875% 04/01/2027 Callable @ 101.719 04/01/2024 | | 75,000 | | 73,124 |
Baytex Energy Corp - 144A 8.500% 04/30/2030 Callable @ 104.250 04/30/2026 | | 90,000 | | 91,223 |
Baytex Energy Corp - 144A 8.750% 04/01/2027 Callable @ 104.375 04/01/2024 | | 70,000 | | 71,739 |
Blue Racer Midstream LLC / Blue Racer Finance Corp - 144A 6.625% 07/15/2026 Callable @ 100.000 07/15/2024 | | 25,000 | | 24,589 |
Blue Racer Midstream LLC / Blue Racer Finance Corp - 144A 7.625% 12/15/2025 Callable @ 101.906 12/15/2023 | | 58,000 | | 58,165 |
Buckeye Partners LP 3.950% 12/01/2026 Callable @ 100.000 09/01/2026 | | 40,000 | | 36,700 |
Buckeye Partners LP 4.125% 12/01/2027 Callable @ 100.000 09/01/2027 | | 15,000 | | 13,575 |
Buckeye Partners LP - 144A 4.125% 03/01/2025 Callable @ 100.000 02/01/2025 | | 115,000 | | 110,687 |
Buckeye Partners LP - 144A 4.500% 03/01/2028 Callable @ 100.000 12/01/2027 | | 40,000 | | 36,126 |
California Resources Corp - 144A 7.125% 02/01/2026 Callable @ 101.781 02/01/2024 | | 103,000 | | 103,773 |
Cheniere Energy Inc 4.625% 10/15/2028 Callable @ 102.313 10/15/2023 | | 90,000 | | 84,699 |
Cheniere Energy Partners LP 3.250% 01/31/2032 Callable @ 101.625 01/31/2027 | | 39,000 | | 32,456 |
Chesapeake Energy Corp 5.500% 09/15/2026 | | 15,000 | | 300 |
Chesapeake Escrow Issuer LLC - 144A 5.500% 02/01/2026 Callable @ 101.375 02/05/2024 | | 25,000 | | 24,611 |
Civitas Resources Inc - 144A 8.375% 07/01/2028 Callable @ 104.188 07/01/2025 | | 64,000 | | 65,828 |
Civitas Resources Inc - 144A 8.750% 07/01/2031 Callable @ 104.375 07/01/2026 | | 56,000 | | 57,960 |
CNX Midstream Partners LP - 144A 4.750% 04/15/2030 Callable @ 102.375 04/15/2025 | | 16,000 | | 13,874 |
CNX Resources Corp - 144A 6.000% 01/15/2029 Callable @ 104.500 01/15/2024 | | 31,000 | | 28,991 |
CNX Resources Corp - 144A 7.375% 01/15/2031 Callable @ 103.688 01/15/2026 | | 40,000 | | 39,661 |
Comstock Resources Inc - 144A 5.875% 01/15/2030 Callable @ 102.938 01/15/2025 | | 43,000 | | 38,063 |
Comstock Resources Inc - 144A 6.750% 03/01/2029 Callable @ 103.375 03/01/2024 | | 156,000 | | 145,513 |
Crescent Energy Finance LLC - 144A 9.250% 02/15/2028 Callable @ 104.625 02/15/2025 | | 84,000 | | 85,445 |
Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp - 144A 5.625% 05/01/2027 Callable @ 100.938 05/01/2024 | | 35,000 | | 33,250 |
Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp - 144A 7.375% 02/01/2031 Callable @ 103.688 02/01/2026 | | 25,000 | | 24,937 |
DT Midstream Inc - 144A 4.125% 06/15/2029 Callable @ 102.063 06/15/2024 | | 95,000 | | 84,236 |
DT Midstream Inc - 144A 4.375% 06/15/2031 Callable @ 102.188 06/15/2026 | | 36,000 | | 31,252 |
Encino Acquisition Partners Holdings LLC - 144A 8.500% 05/01/2028 Callable @ 104.250 05/01/2024 | | 115,000 | | 105,526 |
EnLink Midstream LLC 5.375% 06/01/2029 Callable @ 100.000 03/01/2029 | | 16,000 | | 15,225 |
EnLink Midstream LLC - 144A 6.500% 09/01/2030 Callable @ 100.000 03/01/2030 | | 24,000 | | 24,155 |
EnLink Midstream Partners LP 4.850% 07/15/2026 Callable @ 100.000 04/15/2026 | | 25,000 | | 24,295 |
EQM Midstream Partners LP 4.125% 12/01/2026 Callable @ 100.000 09/01/2026 | | 47,000 | | 44,133 |
EQM Midstream Partners LP 5.500% 07/15/2028 Callable @ 100.000 04/15/2028 | | 5,000 | | 4,811 |
EQM Midstream Partners LP - 144A 4.500% 01/15/2029 Callable @ 100.000 07/15/2028 | | 44,000 | | 40,209 |
EQM Midstream Partners LP - 144A 4.750% 01/15/2031 Callable @ 100.000 07/15/2030 | | 54,000 | | 48,170 |
EQM Midstream Partners LP - 144A 6.000% 07/01/2025 Callable @ 100.000 04/01/2025 | | 15,000 | | 14,892 |
EQM Midstream Partners LP - 144A 6.500% 07/01/2027 Callable @ 100.000 01/01/2027 | | 25,000 | | 24,947 |
EQM Midstream Partners LP - 144A 7.500% 06/01/2027 Callable @ 103.750 06/01/2024 | | 60,000 | | 60,894 |
EQM Midstream Partners LP - 144A 7.500% 06/01/2030 Callable @ 100.000 12/01/2029 | | 36,000 | | 37,120 |
EQT Corp 5.000% 01/15/2029 | | 18,000 | | 17,035 |
EQT Corp - 144A 3.625% 05/15/2031 Callable @ 100.000 05/15/2030 | | 21,000 | | 18,199 |
FMG Resources August 2006 Pty Ltd - 144A 4.375% 04/01/2031 Callable @ 100.000 01/01/2031 | | 28,000 | | 24,079 |
GCI LLC - 144A 4.750% 10/15/2028 Callable @ 102.375 10/15/2023 | | 168,000 | | 146,030 |
Genesis Energy LP / Genesis Energy Finance Corp 6.250% 05/15/2026 Callable @ 100.000 02/15/2024 | | 10,000 | | 9,541 |
Genesis Energy LP / Genesis Energy Finance Corp 7.750% 02/01/2028 Callable @ 103.875 02/01/2024 | | 61,000 | | 59,044 |
Genesis Energy LP / Genesis Energy Finance Corp 8.000% 01/15/2027 Callable @ 104.000 10/15/2024 | | 38,000 | | 37,366 |
Genesis Energy LP / Genesis Energy Finance Corp 8.875% 04/15/2030 Callable @ 104.438 04/15/2026 | | 43,000 | | 42,890 |
Global Infrastructure Solutions Inc - 144A 5.625% 06/01/2029 Callable @ 102.813 06/01/2024 | | 90,000 | | 75,782 |
Global Infrastructure Solutions Inc - 144A 7.500% 04/15/2032 Callable @ 103.750 04/15/2027 | | 50,000 | | 42,302 |
Gulfport Energy Corp 8.000% 05/17/2026 Callable @ 104.000 05/17/2024 | | 25,000 | | 25,245 |
Gulfport Energy Corp - 144A 8.000% 05/17/2026 Callable @ 104.000 05/17/2024 | | 140,000 | | 141,374 |
Hess Infrastructure Partners LP / Hess Infrastructure Partners Finance Corp - 144A 5.625% 02/15/2026 Callable @ 100.000 02/15/2024 | | 25,000 | | 24,625 |
Hess Midstream Operations LP - 144A 4.250% 02/15/2030 Callable @ 102.125 02/15/2025 | | 47,000 | | 41,125 |
Hess Midstream Operations LP - 144A 5.125% 06/15/2028 Callable @ 101.708 06/15/2024 | | 55,000 | | 51,992 |
Hilcorp Energy I LP / Hilcorp Finance Co - 144A 6.000% 04/15/2030 Callable @ 103.000 04/15/2025 | | 29,000 | | 26,804 |
Hilcorp Energy I LP / Hilcorp Finance Co - 144A 6.250% 04/15/2032 Callable @ 103.125 05/15/2027 | | 23,000 | | 20,907 |
Holly Energy Partners LP / Holly Energy Finance Corp - 144A 5.000% 02/01/2028 Callable @ 102.500 02/01/2024 | | 35,000 | | 32,738 |
Holly Energy Partners LP / Holly Energy Finance Corp - 144A 6.375% 04/15/2027 Callable @ 103.188 04/15/2024 | | 48,000 | | 47,693 |
Howard Midstream Energy Partners LLC - 144A 8.875% 07/15/2028 Callable @ 100.000 07/15/2025 | | 60,000 | | 61,356 |
Kinetik Holdings LP - 144A 5.875% 06/15/2030 Callable @ 102.938 06/15/2025 | | 35,000 | | 33,644 |
Nabors Industries Inc 5.750% 02/01/2025 Callable @ 100.000 11/01/2024 | | 109,000 | | 106,820 |
NGL Energy Operating LLC / NGL Energy Finance Corp - 144A 7.500% 02/01/2026 Callable @ 101.875 02/01/2024 | | 42,000 | | 41,615 |
NRG Energy Inc 5.750% 01/15/2028 Callable @ 101.917 01/15/2024 | | 83,000 | | 78,994 |
NRG Energy Inc - 144A 3.875% 02/15/2032 Callable @ 101.938 02/15/2027 | | 44,000 | | 34,049 |
NRG Energy Inc - 144A 5.250% 06/15/2029 Callable @ 102.625 06/15/2024 | | 79,000 | | 71,296 |
NuStar Logistics LP 5.625% 04/28/2027 | | 30,000 | | 29,108 |
NuStar Logistics LP 5.750% 10/01/2025 Callable @ 100.000 07/01/2025 | | 21,000 | | 20,633 |
NuStar Logistics LP 6.000% 06/01/2026 Callable @ 100.000 03/01/2026 | | 50,000 | | 49,207 |
NuStar Logistics LP 6.375% 10/01/2030 Callable @ 100.000 04/01/2030 | | 71,000 | | 68,426 |
Oasis Midstream Partners LP / OMP Finance Corp - 144A 8.000% 04/01/2029 Callable @ 104.000 04/01/2024 | | 159,000 | | 161,638 |
Oasis Petroleum Inc - 144A 6.375% 06/01/2026 Callable @ 101.594 06/01/2024 | | 71,000 | | 70,461 |
Occidental Petroleum Corp 8.500% 07/15/2027 Callable @ 100.000 01/15/2027 | | 46,000 | | 49,892 |
Occidental Petroleum Corp 8.875% 07/15/2030 Callable @ 100.000 01/15/2030 | | 61,000 | | 70,536 |
Precision Drilling Corp - 144A 6.875% 01/15/2029 Callable @ 103.438 01/15/2025 | | 28,000 | | 26,403 |
Precision Drilling Corp - 144A 7.125% 01/15/2026 Callable @ 100.000 11/15/2023 | | 85,000 | | 84,363 |
Range Resources Corp 4.875% 05/15/2025 Callable @ 100.000 02/15/2025 | | 70,000 | | 68,495 |
Range Resources Corp 8.250% 01/15/2029 Callable @ 104.125 01/15/2024 | | 65,000 | | 67,630 |
Range Resources Corp - 144A 4.750% 02/15/2030 Callable @ 102.375 02/15/2025 | | 24,000 | | 22,058 |
SM Energy Co 5.625% 06/01/2025 | | 30,000 | | 29,337 |
SM Energy Co 6.500% 07/15/2028 Callable @ 103.250 07/15/2024 | | 31,000 | | 30,302 |
SM Energy Co 6.750% 09/15/2026 Callable @ 101.125 09/15/2023 | | 40,000 | | 39,300 |
Southwestern Energy Co 4.750% 02/01/2032 Callable @ 102.375 02/01/2027 | | 17,000 | | 15,105 |
Southwestern Energy Co 5.375% 02/01/2029 Callable @ 102.688 02/01/2024 | | 6,000 | | 5,667 |
Southwestern Energy Co 5.375% 03/15/2030 Callable @ 102.688 03/15/2025 | | 82,000 | | 76,733 |
Southwestern Energy Co 8.375% 09/15/2028 Callable @ 104.188 09/15/2023 | | 25,000 | | 25,968 |
Sunoco LP / Sunoco Finance Corp 4.500% 04/30/2030 Callable @ 102.250 04/30/2025 | | 60,000 | | 53,214 |
Sunoco LP / Sunoco Finance Corp 4.500% 05/15/2029 Callable @ 102.250 05/15/2024 | | 109,000 | | 97,868 |
Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp - 144A 5.500% 01/15/2028 Callable @ 101.833 01/15/2024 | | 65,000 | | 59,800 |
Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp - 144A 6.000% 03/01/2027 Callable @ 101.500 03/01/2024 | | 40,000 | | 37,905 |
Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp - 144A 6.000% 09/01/2031 Callable @ 103.000 09/01/2026 | | 70,000 | | 60,897 |
Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp - 144A 6.000% 12/31/2030 Callable @ 103.000 12/31/2025 | | 55,000 | | 48,821 |
Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp - 144A 7.500% 10/01/2025 Callable @ 101.875 10/01/2023 | | 98,000 | | 98,171 |
Targa Resources Partners LP / Targa Resources Partners Finance Corp 4.000% 01/15/2032 Callable @ 102.000 07/15/2026 | | 62,000 | | 54,359 |
Targa Resources Partners LP / Targa Resources Partners Finance Corp 4.875% 02/01/2031 Callable @ 102.438 02/01/2026 | | 70,000 | | 65,108 |
Targa Resources Partners LP / Targa Resources Partners Finance Corp 5.000% 01/15/2028 Callable @ 101.667 01/15/2024 | | 40,000 | | 38,396 |
Targa Resources Partners LP / Targa Resources Partners Finance Corp 5.500% 03/01/2030 Callable @ 102.750 03/01/2025 | | 15,000 | | 14,464 |
Targa Resources Partners LP / Targa Resources Partners Finance Corp 6.500% 07/15/2027 Callable @ 101.625 07/15/2024 | | 108,000 | | 108,511 |
Targa Resources Partners LP / Targa Resources Partners Finance Corp 6.875% 01/15/2029 Callable @ 103.438 01/15/2024 | | 38,000 | | 38,655 |
Transocean Inc - 144A 8.750% 02/15/2030 Callable @ 104.375 02/15/2026 | | 27,000 | | 27,953 |
Transocean Inc - 144A 11.500% 01/30/2027 Callable @ 102.875 07/30/2024 | | 68,000 | | 71,306 |
Transocean Titan Financing Ltd - 144A 8.375% 02/01/2028 Callable @ 104.188 02/01/2025 | | 17,000 | | 17,553 |
Valaris Ltd - 144A 8.375% 04/30/2030 Callable @ 104.188 04/30/2026 | | 35,000 | | 35,875 |
Venture Global LNG Inc - 144A 8.125% 06/01/2028 Callable @ 104.063 06/01/2025 | | 78,000 | | 79,304 |
*Vine Energy Holdings LLC - 144A 6.750% 04/15/2029 Callable @ 103.375 04/15/2024 | | 228,000 | | 226,774 |
| | | | $ | 5,806,601 |
Financials (2.1%) | | | | |
Adient Global Holdings Ltd - 144A 4.875% 08/15/2026 | | 240,000 | | 230,399 |
Ally Financial Inc 5.750% 11/20/2025 Callable @ 100.000 10/20/2025 | | 100,000 | | 96,963 |
(2) Citigroup Inc | | 10,000 | | 9,705 |
Coinbase Global Inc - 144A 3.375% 10/01/2028 Callable @ 101.688 10/01/2024 | | 20,000 | | 14,001 |
Coinbase Global Inc - 144A 3.625% 10/01/2031 Callable @ 101.813 10/01/2026 | | 20,000 | | 12,621 |
LPL Holdings Inc - 144A 4.000% 03/15/2029 Callable @ 102.000 03/15/2024 | | 55,000 | | 49,296 |
LPL Holdings Inc - 144A 4.625% 11/15/2027 Callable @ 101.156 11/15/2023 | | 30,000 | | 28,273 |
Nationstar Mortgage Holdings Inc - 144A 5.125% 12/15/2030 Callable @ 102.563 12/15/2025 | | 26,000 | | 21,910 |
Nationstar Mortgage Holdings Inc - 144A 5.500% 08/15/2028 Callable @ 102.750 08/15/2023 | | 93,000 | | 84,230 |
Nationstar Mortgage Holdings Inc - 144A 5.750% 11/15/2031 Callable @ 102.875 11/15/2026 | | 80,000 | | 67,873 |
Nationstar Mortgage Holdings Inc - 144A 6.000% 01/15/2027 Callable @ 101.500 01/15/2024 | | 10,000 | | 9,556 |
OneMain Finance Corp 3.500% 01/15/2027 Callable @ 101.750 01/15/2024 | | 20,000 | | 17,292 |
OneMain Finance Corp 4.000% 09/15/2030 Callable @ 102.000 09/15/2025 | | 18,000 | | 14,141 |
Quicken Loans LLC / Quicken Loans Co- 144A Issuer Inc - 3.625% 03/01/2029 Callable @ 100.906 03/01/2024 | | 71,000 | | 60,531 |
Rocket Mortgage LLC / Rocket Mortgage Co- 144A Issuer Inc - 2.875% 10/15/2026 Callable @ 101.438 10/15/2023 | | 54,000 | | 48,060 |
Rocket Mortgage LLC / Rocket Mortgage Co- 144A Issuer Inc - 4.000% 10/15/2033 Callable @ 102.000 10/15/2027 | | 9,000 | | 7,138 |
Springleaf Finance Corp 5.375% 11/15/2029 Callable @ 100.000 05/15/2029 | | 130,000 | | 112,665 |
Springleaf Finance Corp 6.625% 01/15/2028 Callable @ 100.000 07/15/2027 | | 24,000 | | 22,755 |
WMG Acquisition Corp - 144A 3.000% 02/15/2031 Callable @ 101.500 02/15/2026 | | 63,000 | | 51,503 |
WMG Acquisition Corp - 144A 3.750% 12/01/2029 Callable @ 101.875 12/01/2024 | | 85,000 | | 74,227 |
| | | | $ | 1,033,139 |
Health Care (10.4%) | | | | |
Acadia Healthcare Co Inc - 144A 5.000% 04/15/2029 Callable @ 102.500 10/15/2023 | | 45,000 | | 41,625 |
Acadia Healthcare Co Inc - 144A 5.500% 07/01/2028 Callable @ 101.375 07/01/2024 | | 72,000 | | 68,940 |
Ardent Health Services Inc - 144A 5.750% 07/15/2029 Callable @ 102.875 07/15/2024 | | 69,000 | | 60,078 |
Avantor Funding Inc - 144A 4.625% 07/15/2028 Callable @ 101.156 07/15/2024 | | 231,000 | | 214,342 |
Bausch Health Americas Inc - 144A 9.250% 04/01/2026 Callable @ 100.000 04/01/2024 | | 250,000 | | 213,594 |
Bausch Health Cos Inc - 144A 4.875% 06/01/2028 Callable @ 102.438 06/01/2024 | | 130,000 | | 78,974 |
Bausch Health Cos Inc - 144A 5.000% 01/30/2028 Callable @ 101.250 01/30/2024 | | 35,000 | | 16,097 |
Bausch Health Cos Inc - 144A 5.000% 02/15/2029 Callable @ 102.500 02/15/2024 | | 49,000 | | 22,354 |
Bausch Health Cos Inc - 144A 5.250% 01/30/2030 Callable @ 102.625 01/30/2025 | | 146,000 | | 65,083 |
Bausch Health Cos Inc - 144A 5.250% 02/15/2031 Callable @ 102.625 02/15/2026 | | 36,000 | | 16,252 |
Bausch Health Cos Inc - 144A 6.250% 02/15/2029 Callable @ 103.125 02/15/2024 | | 80,000 | | 37,090 |
Catalent Pharma Solutions Inc - 144A 5.000% 07/15/2027 Callable @ 100.000 07/15/2024 | | 10,000 | | 9,368 |
Catalent Pharma Solutions Inc - 144A 3.125% 02/15/2029 Callable @ 101.563 02/15/2024 | | 17,000 | | 14,168 |
*Centene Corp 4.625% 12/15/2029 Callable @ 102.313 12/15/2024 | | 262,000 | | 243,406 |
CHS/Community Health Systems Inc - 144A 6.125% 04/01/2030 Callable @ 103.063 04/01/2025 | | 58,000 | | 36,605 |
CHS/Community Health Systems Inc - 144A 4.750% 02/15/2031 Callable @ 102.375 02/15/2026 | | 60,000 | | 45,455 |
CHS/Community Health Systems Inc - 144A 5.250% 05/15/2030 Callable @ 102.625 05/15/2025 | | 130,000 | | 103,988 |
CHS/Community Health Systems Inc - 144A 5.625% 03/15/2027 Callable @ 102.813 12/15/2023 | | 44,000 | | 39,164 |
CHS/Community Health Systems Inc - 144A 6.000% 01/15/2029 Callable @ 103.000 01/15/2024 | | 24,000 | | 20,520 |
CHS/Community Health Systems Inc - 144A 8.000% 03/15/2026 Callable @ 100.000 03/15/2024 | | 113,000 | | 110,960 |
DaVita Inc - 144A 3.750% 02/15/2031 Callable @ 101.875 02/15/2026 | | 105,000 | | 84,186 |
DaVita Inc - 144A 4.625% 06/01/2030 Callable @ 102.313 06/01/2025 | | 201,000 | | 171,172 |
Elanco Animal Health Inc 6.400% 08/28/2028 Callable @ 100.000 05/28/2028 | | 60,000 | | 59,206 |
Emergent BioSolutions Inc - 144A 3.875% 08/15/2028 Callable @ 101.938 08/15/2023 | | 82,000 | | 45,510 |
Encompass Health Corp 4.500% 02/01/2028 Callable @ 101.125 02/01/2024 | | 154,000 | | 143,040 |
Encompass Health Corp 4.625% 04/01/2031 Callable @ 102.313 04/01/2026 | | 35,000 | | 31,100 |
Encompass Health Corp 4.750% 02/01/2030 Callable @ 102.375 02/01/2025 | | 20,000 | | 18,179 |
(4) Endo Luxembourg Finance Co I Sarl / Endo US Inc - 144A 6.125% 04/01/2029 Callable @ 104.594 04/01/2024 | | 30,000 | | 21,785 |
(4) Enterprise Merger Sub Inc - 144A 8.750% 10/15/2026 Callable @ 100.000 10/15/2023 | | 150,000 | | 4,081 |
Global Medical Response Inc - 144A 6.500% 10/01/2025 Callable @ 100.000 10/01/2023 | | 50,000 | | 29,641 |
*HCA Inc 5.875% 02/15/2026 Callable @ 100.000 08/15/2025 | | 160,000 | | 160,418 |
HealthSouth Corp 5.750% 09/15/2025 Callable @ 100.000 09/15/2023 | | 55,000 | | 54,863 |
Hologic Inc - 144A 4.625% 02/01/2028 Callable @ 101.541 02/01/2024 | | 95,000 | | 90,280 |
*IQVIA Inc - 144A 5.000% 10/15/2026 Callable @ 100.833 10/15/2023 | | 200,000 | | 194,179 |
(4) MALLINCKRODT FIN - 144A 11.500% 12/15/2028 Callable @ 100.000 06/15/2027 | | 160,000 | | 138,256 |
(4) Mallinckrodt International Finance SA / Mallinckrodt CB LLC - 144A 10.000% 06/15/2029 Callable @ 105.000 06/15/2026 | | 26,203 | | 4,127 |
*Mozart Debt Merger Sub Inc - 144A 3.875% 04/01/2029 Callable @ 101.938 10/01/2024 | | 203,000 | | 177,738 |
Mozart Debt Merger Sub Inc - 144A 5.250% 10/01/2029 Callable @ 102.625 10/01/2024 | | 102,000 | | 90,126 |
Organon Finance 1 LLC - 144A 4.125% 04/30/2028 Callable @ 102.063 04/30/2024 | | 200,000 | | 179,229 |
Owens & Minor Inc - 144A 4.500% 03/31/2029 Callable @ 102.250 03/31/2024 | | 135,000 | | 116,049 |
Owens & Minor Inc - 144A 6.625% 04/01/2030 Callable @ 103.313 04/01/2025 | | 32,000 | | 29,345 |
(4) Par Pharmaceutical Inc - 144A 7.500% 04/01/2027 Callable @ 101.875 04/01/2024 | | 75,000 | | 55,038 |
Radiology Partners Inc - 144A 9.250% 02/01/2028 Callable @ 102.313 02/01/2024 | | 45,000 | | 17,325 |
RP Escrow Issuer LLC - 144A 5.250% 12/15/2025 Callable @ 101.313 12/15/2023 | | 22,000 | | 14,965 |
Syneos Health Inc - 144A 3.625% 01/15/2029 Callable @ 101.813 01/15/2024 | | 45,000 | | 44,550 |
Tenet Healthcare Corp 4.875% 01/01/2026 Callable @ 100.000 03/01/2024 | | 461,000 | | 445,833 |
Tenet Healthcare Corp 5.125% 11/01/2027 Callable @ 101.281 11/01/2023 | | 296,000 | | 281,077 |
Tenet Healthcare Corp 6.125% 06/15/2030 Callable @ 103.063 06/15/2025 | | 77,000 | | 74,752 |
Tenet Healthcare Corp 6.250% 02/01/2027 Callable @ 100.000 02/01/2024 | | 87,000 | | 85,625 |
Tenet Healthcare Corp - 144A 6.750% 05/15/2031 Callable @ 103.375 05/15/2026 | | 86,000 | | 85,425 |
Valeant Pharmaceuticals International Inc - 144A 5.500% 11/01/2025 | | 260,000 | | 233,718 |
Valeant Pharmaceuticals International Inc - 144A 8.500% 01/31/2027 Callable @ 102.125 07/31/2023 | | 99,000 | | 55,323 |
Valeant Pharmaceuticals International Inc - 144A 9.000% 12/15/2025 Callable @ 100.000 12/15/2023 | | 404,000 | | 369,889 |
| | | | $ | 5,064,093 |
Industrials (14.6%) | | | | |
ACCO Brands Corp - 144A 4.250% 03/15/2029 Callable @ 102.125 03/15/2024 | | 180,000 | | 154,026 |
ADT Security Corp/The - 144A 4.125% 08/01/2029 Callable @ 100.000 08/01/2028 | | 98,000 | | 85,015 |
*ADT Security Corp/The - 144A 4.875% 07/15/2032 | | 173,000 | | 148,661 |
Advanced Drainage Systems Inc - 144A 5.000% 09/30/2027 Callable @ 101.250 09/30/2023 | | 26,000 | | 24,831 |
Allison Transmission Inc - 144A 3.750% 01/30/2031 Callable @ 101.875 01/30/2026 | | 90,000 | | 76,088 |
Allison Transmission Inc - 144A 4.750% 10/01/2027 Callable @ 101.583 10/01/2023 | | 66,000 | | 62,356 |
American Airlines Inc/AAdvantage Loyalty IP Ltd - 144A 5.500% 04/20/2026 | | 244,827 | | 241,165 |
American Airlines Inc/AAdvantage Loyalty IP Ltd - 144A 5.750% 04/20/2029 | | 150,000 | | 145,183 |
APi Escrow Corp - 144A 4.750% 10/15/2029 Callable @ 102.375 10/15/2024 | | 37,000 | | 32,930 |
APi Group DE Inc - 144A 4.125% 07/15/2029 Callable @ 102.063 07/15/2024 | | 56,000 | | 48,720 |
Arconic Rolled Products Corp - 144A 6.125% 02/15/2028 Callable @ 101.531 02/15/2024 | | 188,000 | | 192,969 |
ATS Automation Tooling Systems Inc - 144A 4.125% 12/15/2028 Callable @ 102.063 12/15/2023 | | 49,000 | | 43,826 |
Avis Budget Car Rental LLC / Avis Budget Finance Inc - 144A 4.750% 04/01/2028 Callable @ 102.375 04/01/2024 | | 70,000 | | 63,320 |
Avis Budget Car Rental LLC / Avis Budget Finance Inc - 144A 5.375% 03/01/2029 Callable @ 102.688 03/01/2024 | | 122,000 | | 113,510 |
Avis Budget Car Rental LLC / Avis Budget Finance Inc - 144A 5.750% 07/15/2027 Callable @ 100.000 07/15/2024 | | 50,000 | | 48,075 |
Bombardier Inc - 144A 7.500% 03/15/2025 | | 34,000 | | 34,120 |
Bombardier Inc - 144A 7.875% 04/15/2027 Callable @ 100.000 04/15/2024 | | 87,000 | | 86,713 |
Brink’s Co/The - 144A 5.500% 07/15/2025 Callable @ 100.000 07/15/2024 | | 40,000 | | 39,602 |
Builders FirstSource Inc - 144A 4.250% 02/01/2032 Callable @ 102.125 08/01/2026 | | 93,000 | | 80,696 |
Builders FirstSource Inc - 144A 6.375% 06/15/2032 Callable @ 103.188 06/15/2027 | | 64,000 | | 63,652 |
BWX Technologies Inc - 144A 4.125% 04/15/2029 Callable @ 102.063 04/15/2024 | | 63,000 | | 56,543 |
BWX Technologies Inc - 144A 4.125% 06/30/2028 Callable @ 101.031 06/30/2024 | | 44,000 | | 40,047 |
Chart Industries Inc - 144A 7.500% 01/01/2030 Callable @ 103.750 01/01/2026 | | 34,000 | | 34,719 |
Chart Industries Inc - 144A 9.500% 01/01/2031 Callable @ 104.750 01/01/2026 | | 12,000 | | 12,870 |
CoreCivic Inc 8.250% 04/15/2026 Callable @ 104.125 04/15/2024 | | 94,000 | | 94,712 |
CVR Partners LP / CVR Nitrogen Finance Corp - 144A 6.125% 06/15/2028 Callable @ 103.063 06/15/2024 | | 52,000 | | 46,961 |
Dun & Bradstreet Corp/The - 144A 5.000% 12/15/2029 Callable @ 102.500 12/15/2024 | | 23,000 | | 20,245 |
Dycom Industries Inc - 144A 4.500% 04/15/2029 Callable @ 102.250 04/15/2024 | | 90,000 | | 81,450 |
Emerald Debt Merger Sub LLC - 144A 6.625% 12/15/2030 Callable @ 103.313 06/15/2026 | | 175,000 | | 173,906 |
EnPro Industries Inc 5.750% 10/15/2026 Callable @ 101.438 10/15/2023 | | 66,000 | | 64,350 |
EquipmentShare.com Inc - 144A 9.000% 05/15/2028 Callable @ 106.750 05/15/2025 | | 80,000 | | 79,277 |
First Student Bidco Inc / First Transit Parent Inc - 144A 4.000% 07/31/2029 Callable @ 102.000 07/31/2024 | | 102,000 | | 86,427 |
GEO Group Inc/The 10.500% 06/30/2028 Callable @ 102.000 08/19/2023 | | 56,000 | | 56,158 |
GFL Environmental Inc - 144A 4.375% 08/15/2029 Callable @ 102.188 08/15/2024 | | 39,000 | | 34,779 |
GFL Environmental Inc - 144A 3.750% 08/01/2025 Callable @ 100.938 08/01/2023 | | 34,000 | | 32,547 |
GFL Environmental Inc - 144A 4.000% 08/01/2028 Callable @ 102.000 08/01/2023 | | 75,000 | | 67,007 |
GFL Environmental Inc - 144A 4.750% 06/15/2029 Callable @ 102.375 06/08/2024 | | 45,000 | | 40,960 |
GFL Environmental Inc - 144A 5.125% 12/15/2026 Callable @ 101.281 12/15/2023 | | 70,000 | | 68,092 |
GPC Merger Sub Inc - 144A 7.125% 08/15/2028 Callable @ 103.563 08/15/2023 | | 74,000 | | 64,768 |
Griffon Corp 5.750% 03/01/2028 Callable @ 101.917 03/01/2024 | | 135,000 | | 127,053 |
Hertz Corp .000% 01/15/2028 | | 20,000 | | 1,600 |
Hertz Corp .000% 08/01/2026 | | 80,000 | | 6,800 |
Hertz Corp .000% 10/15/2024 | | 148,000 | | 4,440 |
Hertz Corp 6.250% 10/15/2022 | | 25,000 | | 750 |
Hertz Corp/The - 144A 4.625% 12/01/2026 Callable @ 102.313 12/01/2023 | | 58,000 | | 52,400 |
Hertz Corp/The - 144A 5.000% 12/01/2029 Callable @ 102.500 12/01/2024 | | 200,000 | | 164,917 |
Hillenbrand Inc 5.000% 09/15/2026 Callable @ 100.000 07/15/2026 | | 10,000 | | 9,791 |
Iron Mountain Inc - 144A 4.500% 02/15/2031 Callable @ 102.250 02/15/2026 | | 42,000 | | 36,184 |
Iron Mountain Inc - 144A 4.875% 09/15/2027 Callable @ 101.625 09/15/2023 | | 57,000 | | 53,456 |
Jeld- 144A Wen Inc - 4.625% 12/15/2025 | | 67,000 | | 65,419 |
Jeld- 144A Wen Inc - 4.875% 12/15/2027 Callable @ 101.625 12/15/2023 | | 60,000 | | 53,863 |
JELD- 144A WEN Inc - 6.250% 05/15/2025 Callable @ 100.000 05/15/2024 | | 45,000 | | 45,624 |
*Madison IAQ LLC - 144A 4.125% 06/30/2028 Callable @ 102.063 06/30/2024 | | 211,000 | | 187,895 |
Madison IAQ LLC - 144A 5.875% 06/30/2029 Callable @ 102.938 06/30/2024 | | 135,000 | | 113,237 |
Masonite International Corp - 144A 5.375% 02/01/2028 Callable @ 101.344 02/01/2024 | | 70,000 | | 66,500 |
MasTec Inc - 144A 4.500% 08/15/2028 Callable @ 102.250 08/15/2023 | | 124,000 | | 115,097 |
Mileage Plus Holdings LLC / Mileage Plus Intellectual Property Assets Ltd - 144A 6.500% 06/20/2027 Callable @ 101.625 06/30/2024 | | 84,000 | | 83,995 |
MIWD Holdco II LLC / MIWD Finance Corp - 144A 5.500% 02/01/2030 Callable @ 102.750 02/01/2025 | | 59,000 | | 49,855 |
Mueller Water Products Inc - 144A 4.000% 06/15/2029 Callable @ 100.000 06/15/2024 | | 105,000 | | 93,559 |
NESCO Holdings II Inc - 144A 5.500% 04/15/2029 Callable @ 102.750 04/15/2024 | | 51,000 | | 46,384 |
PGT Innovations Inc - 144A 4.375% 10/01/2029 Callable @ 102.188 08/01/2024 | | 66,000 | | 61,224 |
Pike Corp - 144A 5.500% 09/01/2028 Callable @ 102.750 09/01/2023 | | 63,000 | | 56,700 |
*Prime Security Services Borrower LLC / Prime Finance Inc - 144A 3.375% 08/31/2027 Callable @ 100.000 08/31/2026 | | 197,000 | | 173,922 |
Prime Security Services Borrower LLC / Prime Finance Inc - 144A 5.750% 04/15/2026 | | 5,000 | | 4,902 |
Regal Rexnord Corp 6.300% 02/15/2030 Callable @ 100.000 12/15/2029 | | 36,000 | | 35,884 |
Regal Rexnord Corp - 144A 6.050% 02/15/2026 | | 43,000 | | 42,980 |
Regal Rexnord Corp - 144A 6.050% 04/15/2028 Callable @ 100.000 03/15/2028 | | 85,000 | | 84,432 |
Regal Rexnord Corp - 144A 6.400% 04/15/2033 Callable @ 100.000 01/15/2033 | | 50,000 | | 49,831 |
Ritchie Bros Auctioneers Inc - 144A 6.750% 03/15/2028 Callable @ 103.375 03/15/2025 | | 25,000 | | 25,312 |
Ritchie Bros Auctioneers Inc - 144A 7.750% 03/15/2031 Callable @ 103.875 03/15/2026 | | 42,000 | | 43,773 |
Sensata Technologies BV - 144A 4.000% 04/15/2029 Callable @ 102.000 04/15/2024 | | 50,000 | | 44,187 |
Sensata Technologies BV - 144A 5.000% 10/01/2025 | | 2,000 | | 1,950 |
Sensata Technologies Inc - 144A 3.750% 02/15/2031 Callable @ 101.875 02/15/2026 | | 18,000 | | 15,199 |
Spirit AeroSystems Inc - 144A 7.500% 04/15/2025 Callable @ 100.000 04/15/2024 | | 113,000 | | 112,947 |
Spirit AeroSystems Inc - 144A 9.375% 11/30/2029 Callable @ 104.688 11/30/2025 | | 49,000 | | 52,452 |
SRS Distribution Inc - 144A 4.625% 07/01/2028 Callable @ 102.313 07/01/2024 | | 128,000 | | 115,888 |
SRS Distribution Inc - 144A 6.000% 12/01/2029 Callable @ 103.000 12/01/2024 | | 65,000 | | 56,388 |
SRS Distribution Inc - 144A 6.125% 07/01/2029 Callable @ 103.063 07/01/2024 | | 47,000 | | 41,240 |
Standard Industries Inc/NJ - 144A 3.375% 01/15/2031 Callable @ 101.688 07/15/2025 | | 64,000 | | 51,691 |
Standard Industries Inc/NJ - 144A 4.750% 01/15/2028 Callable @ 101.583 01/15/2024 | | 187,000 | | 174,234 |
Standard Industries Inc/NJ - 144A 5.000% 02/15/2027 | | 90,000 | | 86,218 |
Stericycle Inc - 144A 3.875% 01/15/2029 Callable @ 101.938 11/15/2023 | | 120,000 | | 106,124 |
Terex Corp - 144A 5.000% 05/15/2029 Callable @ 102.500 05/15/2024 | | 88,000 | | 81,881 |
TransDigm Inc - 144A 6.250% 03/15/2026 Callable @ 100.000 03/15/2024 | | 80,000 | | 79,621 |
TriMas Corp - 144A 4.125% 04/15/2029 Callable @ 102.063 04/15/2024 | | 63,000 | | 55,599 |
Trinity Industries Inc - 144A 7.750% 07/15/2028 Callable @ 103.875 07/15/2025 | | 60,000 | | 61,045 |
Triton Water Holdings Inc - 144A 6.250% 04/01/2029 Callable @ 103.125 04/01/2024 | | 147,000 | | 124,112 |
Triumph Group Inc 7.750% 08/15/2025 Callable @ 100.000 08/15/2023 | | 75,000 | | 72,387 |
Triumph Group Inc - 144A 9.000% 03/15/2028 Callable @ 104.500 03/15/2025 | | 32,000 | | 32,830 |
Uber Technologies Inc - 144A 4.500% 08/15/2029 Callable @ 102.250 08/15/2024 | | 89,000 | | 82,273 |
Uber Technologies Inc - 144A 7.500% 09/15/2027 Callable @ 103.750 09/15/2023 | | 80,000 | | 81,636 |
United Airlines Inc - 144A 4.375% 04/15/2026 Callable @ 100.000 10/15/2025 | | 72,000 | | 68,182 |
United Rentals North America Inc 4.875% 01/15/2028 Callable @ 101.625 01/15/2024 | | 139,000 | | 132,620 |
United Rentals North America Inc 5.500% 05/15/2027 Callable @ 100.917 05/15/2024 | | 65,000 | | 63,903 |
VistaJet Malta Finance PLC / Vista Management Holding Inc - 144A 9.500% 06/01/2028 Callable @ 104.750 06/01/2025 | | 31,000 | | 29,606 |
Wabash National Corp - 144A 4.500% 10/15/2028 Callable @ 102.250 10/15/2024 | | 68,000 | | 57,290 |
WESCO Distribution Inc - 144A 7.125% 06/15/2025 | | 65,000 | | 65,747 |
WESCO Distribution Inc - 144A 7.250% 06/15/2028 Callable @ 102.417 06/15/2024 | | 190,000 | | 193,713 |
White Cap Buyer LLC - 144A 6.875% 10/15/2028 Callable @ 103.438 10/15/2023 | | 19,000 | | 17,117 |
(4) Wolverine Escrow LLC - 144A 8.500% 11/15/2024 Callable @ 100.000 11/15/2023 | | 5,000 | | 200 |
(4) Wolverine Escrow LLC - 144A 9.000% 11/15/2026 Callable @ 104.500 11/15/2023 | | 109,000 | | 10,355 |
(4) Wolverine Escrow LLC - 144A 13.125% 11/15/2027 Callable @ 106.563 11/15/2023 | | 20,000 | | 600 |
XPO Inc - 144A 6.250% 06/01/2028 Callable @ 103.125 06/01/2025 | | 45,000 | | 44,555 |
| | | | $ | 7,112,845 |
Information Technology (5.6%) | | | | |
ACI Worldwide Inc - 144A 5.750% 08/15/2026 Callable @ 101.438 08/15/2023 | | 69,000 | | 67,620 |
Ahead DB Holdings LLC - 144A 6.625% 05/01/2028 Callable @ 103.313 05/01/2024 | | 72,000 | | 62,117 |
Black Knight InfoServ LLC - 144A 3.625% 09/01/2028 Callable @ 101.813 09/01/2023 | | 70,000 | | 63,875 |
CDW LLC / CDW Finance Corp 3.250% 02/15/2029 Callable @ 100.813 02/15/2024 | | 34,000 | | 29,654 |
CDW LLC / CDW Finance Corp 4.250% 04/01/2028 Callable @ 101.063 10/01/2023 | | 60,000 | | 55,442 |
Clarivate Science Holdings Corp - 144A 3.875% 06/30/2028 Callable @ 101.938 06/30/2024 | | 40,000 | | 35,655 |
Clarivate Science Holdings Corp - 144A 4.875% 06/30/2029 Callable @ 102.438 06/30/2024 | | 79,000 | | 70,177 |
CommScope Finance LLC - 144A 6.000% 03/01/2026 Callable @ 100.000 03/01/2024 | | 156,000 | | 143,140 |
CommScope Finance LLC - 144A 8.250% 03/01/2027 Callable @ 100.000 03/01/2024 | | 190,000 | | 143,823 |
CommScope Inc - 144A 4.750% 09/01/2029 Callable @ 102.375 09/01/2024 | | 113,000 | | 87,028 |
CommScope Technologies Finance LLC - 144A 6.000% 06/15/2025 | | 93,000 | | 83,926 |
CommScope Technologies LLC - 144A 5.000% 03/15/2027 Callable @ 100.833 03/15/2024 | | 5,000 | | 3,335 |
Conduent Business Services LLC / Conduent State & Local Solutions Inc - 144A 6.000% 11/01/2029 Callable @ 103.000 11/01/2024 | | 90,000 | | 75,600 |
Entegris Escrow Corp - 144A 4.750% 04/15/2029 Callable @ 100.000 01/15/2029 | | 88,000 | | 82,099 |
Entegris Escrow Corp - 144A 5.950% 06/15/2030 Callable @ 102.975 06/15/2025 | | 48,000 | | 45,944 |
Entegris Inc - 144A 3.625% 05/01/2029 Callable @ 102.719 05/01/2024 | | 89,000 | | 76,939 |
Entegris Inc - 144A 4.375% 04/15/2028 Callable @ 101.094 04/15/2024 | | 56,000 | | 50,944 |
Gartner Inc - 144A 3.625% 06/15/2029 Callable @ 101.813 06/15/2024 | | 30,000 | | 26,435 |
Gartner Inc - 144A 4.500% 07/01/2028 Callable @ 101.125 07/01/2024 | | 215,000 | | 201,212 |
II- 144A VI Inc - 5.000% 12/15/2029 Callable @ 102.500 12/14/2024 | | 171,000 | | 153,900 |
Imola Merger Corp - 144A 4.750% 05/15/2029 Callable @ 102.375 05/15/2024 | | 220,000 | | 193,449 |
Minerva Merger Sub Inc - 144A 6.500% 02/15/2030 Callable @ 103.250 02/15/2025 | | 35,000 | | 29,655 |
NCR Corp - 144A 5.000% 10/01/2028 Callable @ 102.500 10/01/2023 | | 35,000 | | 31,661 |
NCR Corp - 144A 5.125% 04/15/2029 Callable @ 102.563 04/15/2024 | | 120,000 | | 107,309 |
NCR Corp - 144A 5.750% 09/01/2027 Callable @ 101.438 09/01/2023 | | 108,000 | | 108,675 |
NCR Corp - 144A 6.125% 09/01/2029 Callable @ 103.063 09/01/2024 | | 80,000 | | 81,311 |
ON Semiconductor Corp - 144A 3.875% 09/01/2028 Callable @ 101.938 09/01/2023 | | 118,000 | | 106,765 |
Presidio Holdings Inc - 144A 4.875% 02/01/2027 Callable @ 101.219 02/01/2024 | | 40,000 | | 37,733 |
Sabre GLBL Inc - 144A 7.375% 09/01/2025 Callable @ 101.844 09/01/2023 | | 20,000 | | 18,050 |
Seagate HDD Cayman - 144A 8.250% 12/15/2029 Callable @ 104.125 07/15/2026 | | 46,000 | | 48,102 |
Seagate HDD Cayman - 144A 8.500% 07/15/2031 Callable @ 104.250 07/15/2026 | | 12,000 | | 12,528 |
Sinclair Television Group Inc - 144A 5.125% 02/15/2027 Callable @ 100.854 08/15/2023 | | 20,000 | | 16,719 |
Square Inc 3.500% 06/01/2031 Callable @ 100.000 03/01/2031 | | 175,000 | | 146,595 |
SS&C Technologies Inc - 144A 5.500% 09/30/2027 Callable @ 101.375 03/30/2024 | | 210,000 | | 202,013 |
Synaptics Inc - 144A 4.000% 06/15/2029 Callable @ 102.000 06/15/2024 | | 37,000 | | 31,824 |
| | | | $ | 2,731,254 |
Materials (5.9%) | | | | |
Allegheny Technologies Inc 4.875% 10/01/2029 Callable @ 102.438 10/01/2024 | | 45,000 | | 40,951 |
Allegheny Technologies Inc 5.125% 10/01/2031 Callable @ 102.563 10/01/2026 | | 23,000 | | 20,641 |
Allegheny Technologies Inc 5.875% 12/01/2027 Callable @ 101.469 12/01/2023 | | 66,000 | | 64,152 |
Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc - 144A 5.250% 08/15/2027 Callable @ 101.313 08/15/2023 | | 200,000 | | 171,648 |
Avient Corp - 144A 7.125% 08/01/2030 Callable @ 103.563 08/01/2025 | | 19,000 | | 19,153 |
Axalta Coating Systems LLC / Axalta Coating Systems Dutch Holding B BV - 144A 4.750% 06/15/2027 Callable @ 101.188 06/15/2024 | | 150,000 | | 142,292 |
Berry Global Escrow Corp - 144A 4.875% 07/15/2026 Callable @ 100.000 07/15/2024 | | 7,000 | | 6,769 |
Berry Global Inc - 144A 4.500% 02/15/2026 | | 15,000 | | 14,305 |
Big River Steel LLC / BRS Finance Corp - 144A 6.625% 01/31/2029 Callable @ 103.313 09/15/2023 | | 87,000 | | 86,713 |
Boise Cascade Co - 144A 4.875% 07/01/2030 Callable @ 102.438 07/01/2025 | | 10,000 | | 9,125 |
Carpenter Technology Corp 6.375% 07/15/2028 Callable @ 101.594 07/15/2024 | | 50,000 | | 49,219 |
Carpenter Technology Corp 7.625% 03/15/2030 Callable @ 103.813 03/15/2025 | | 17,000 | | 17,339 |
Chemours Co/The - 144A 4.625% 11/15/2029 Callable @ 102.313 11/15/2024 | | 25,000 | | 21,093 |
Chemours Co/The - 144A 5.750% 11/15/2028 Callable @ 102.875 11/15/2023 | | 173,000 | | 159,333 |
Cleveland- 144A Cliffs Inc - 4.625% 03/01/2029 Callable @ 102.313 03/01/2024 | | 40,000 | | 36,625 |
Cleveland- 144A Cliffs Inc - 4.875% 03/01/2031 Callable @ 102.438 03/01/2026 | | 29,000 | | 25,694 |
Cleveland- 144A Cliffs Inc - 6.750% 04/15/2030 Callable @ 103.375 04/15/2026 | | 45,000 | | 43,781 |
Element Solutions Inc - 144A 3.875% 09/01/2028 Callable @ 101.938 09/01/2023 | | 100,000 | | 88,463 |
Freeport McMoRan Inc 5.450% 03/15/2043 Callable @ 100.000 09/15/2042 | | 15,000 | | 13,967 |
Glatfelter Corp - 144A 4.750% 11/15/2029 Callable @ 102.375 11/01/2024 | | 42,000 | | 28,979 |
Kaiser Aluminum Corp - 144A 4.500% 06/01/2031 Callable @ 102.250 06/01/2026 | | 30,000 | | 24,571 |
Knife River Holding Co - 144A 7.750% 05/01/2031 Callable @ 103.875 05/01/2026 | | 20,000 | | 20,395 |
LABL Escrow Issuer LLC - 144A 6.750% 07/15/2026 Callable @ 100.000 07/15/2024 | | 125,000 | | 122,632 |
LABL Escrow Issuer LLC - 144A 10.500% 07/15/2027 Callable @ 100.000 07/15/2024 | | 60,000 | | 57,143 |
Mauser Packaging Solutions Holding Co - 144A 7.875% 08/15/2026 Callable @ 103.938 08/15/2024 | | 285,000 | | 283,366 |
Mauser Packaging Solutions Holding Co - 144A 9.250% 04/15/2027 Callable @ 106.938 10/15/2024 | | 95,000 | | 88,249 |
NOVA Chemicals Corp - 144A 4.250% 05/15/2029 Callable @ 102.125 05/15/2024 | | 106,000 | | 88,133 |
NOVA Chemicals Corp - 144A 4.875% 06/01/2024 Callable @ 100.000 03/03/2024 | | 30,000 | | 29,250 |
NOVA Chemicals Corp - 144A 5.250% 06/01/2027 Callable @ 100.000 03/03/2027 | | 65,000 | | 58,540 |
Novelis Corp - 144A 4.750% 01/30/2030 Callable @ 102.375 01/30/2025 | | 45,000 | | 40,438 |
Owens- 144A Brockway Glass Container Inc - 6.625% 05/13/2027 | | 63,000 | | 62,643 |
Scotts Miracle Gro Co/The 4.000% 04/01/2031 Callable @ 102.000 04/01/2026 | | 101,000 | | 82,035 |
Scotts Miracle Gro Co/The 4.375% 02/01/2032 Callable @ 102.188 08/01/2026 | | 56,000 | | 45,360 |
Scotts Miracle Gro Co/The 4.500% 10/15/2029 Callable @ 102.250 10/15/2024 | | 14,000 | | 12,228 |
Scotts Miracle Gro Co/The 5.250% 12/15/2026 Callable @ 100.875 12/15/2023 | | 135,000 | | 128,515 |
Summit Materials LLC / Summit Materials Finance Corp - 144A 5.250% 01/15/2029 Callable @ 101.313 07/15/2024 | | 54,000 | | 50,944 |
Summit Midstream Holdings LLC / Summit Midstream Finance Corp - 144A 8.500% 10/15/2026 Callable @ 104.250 10/15/2023 | | 37,000 | | 36,352 |
Trinseo Materials Operating SCA / Trinseo Materials Finance Inc - 144A 5.125% 04/01/2029 Callable @ 102.563 04/01/2024 | | 146,000 | �� | 85,836 |
Trinseo Materials Operating SCA / Trinseo Materials Finance Inc - 144A 5.375% 09/01/2025 Callable @ 100.000 09/01/2023 | | 95,000 | | 86,464 |
Trivium Packaging Finance BV - 144A 5.500% 08/15/2026 Callable @ 101.375 08/15/2023 | | 200,000 | | 190,653 |
United States Steel Corp 6.875% 03/01/2029 Callable @ 103.438 03/01/2024 | | 7,000 | | 6,914 |
Valvoline Inc - 144A 4.250% 02/15/2030 Callable @ 102.125 02/15/2025 | | 35,000 | | 34,431 |
(4) Venator Finance S.a r.l. / Venator Materials Corp - 144A 5.750% 07/15/2025 | | 50,000 | | 2,500 |
(4) Venator Finance Sarl / Venator Materials LLC - 144A 9.500% 07/01/2025 Callable @ 100.000 07/01/2024 | | 40,000 | | 31,200 |
WR Grace & Co Conn - 144A 4.875% 06/15/2027 Callable @ 101.219 06/15/2024 | | 114,000 | | 107,468 |
WR Grace Holdings LLC - 144A 5.625% 08/15/2029 Callable @ 102.813 08/15/2024 | | 28,000 | | 23,629 |
| | | | $ | 2,860,131 |
Real Estate (0.6%) | | | | |
Iron Mountain Inc - 144A 5.000% 07/15/2028 Callable @ 101.250 07/15/2024 | | 7,000 | | 6,482 |
Iron Mountain Inc - 144A 5.250% 07/15/2030 Callable @ 102.625 07/15/2025 | | 90,000 | | 81,358 |
Kennedy Wilson Inc 4.750% 03/01/2029 Callable @ 102.375 03/01/2024 | | 20,000 | | 16,207 |
Kennedy Wilson Inc 5.000% 03/01/2031 Callable @ 102.500 03/01/2026 | | 20,000 | | 15,500 |
MGM Growth Properties Operating Partnership LP / MGP Finance Co Issuer Inc - 144A 5.750% 02/01/2027 Callable @ 100.000 11/01/2026 | | 44,000 | | 43,412 |
RHP Hotel Properties LP / RHP Finance Corp - 144A 4.500% 02/15/2029 Callable @ 102.250 02/15/2024 | | 123,000 | | 109,624 |
RHP Hotel Properties LP / RHP Finance Corp - 144A 7.250% 07/15/2028 Callable @ 103.625 07/15/2025 | | 24,000 | | 24,361 |
| | | | $ | 296,944 |
Utilities (1.1%) | | | | |
AmeriGas Partners LP / AmeriGas Finance Corp 5.875% 08/20/2026 Callable @ 100.000 05/20/2026 | | 75,000 | | 70,647 |
AmeriGas Partners LP / AmeriGas Finance Corp - 144A 9.375% 06/01/2028 Callable @ 104.688 06/01/2025 | | 39,000 | | 39,592 |
Calpine Corp - 144A 4.625% 02/01/2029 Callable @ 102.313 02/01/2024 | | 64,000 | | 55,105 |
Calpine Corp - 144A 5.000% 02/01/2031 Callable @ 102.500 02/01/2026 | | 30,000 | | 25,268 |
Calpine Corp - 144A 5.250% 06/01/2026 Callable @ 100.000 06/01/2024 | | 7,000 | | 6,795 |
NRG Energy Inc 6.625% 01/15/2027 Callable @ 100.000 07/15/2024 | | 9,000 | | 8,934 |
NRG Energy Inc - 144A 3.375% 02/15/2029 Callable @ 101.688 02/15/2024 | | 33,000 | | 27,241 |
NRG Energy Inc - 144A 3.625% 02/15/2031 Callable @ 101.813 02/15/2026 | | 18,000 | | 14,126 |
NRG Energy Inc - 144A 7.000% 03/15/2033 Callable @ 100.000 12/15/2032 | | 38,000 | | 37,937 |
PG&E Corp 5.000% 07/01/2028 Callable @ 101.667 07/01/2024 | | 40,000 | | 37,001 |
PG&E Corp 5.250% 07/01/2030 Callable @ 102.625 07/01/2025 | | 10,000 | | 8,981 |
(2) VISTRA CORP - 144A 7.000% 12/15/2026 Callable @ 100.000 12/15/2026 | | 70,000 | | 63,080 |
Vistra Operations Co LLC - 144A 4.375% 05/01/2029 Callable @ 102.188 05/01/2024 | | 27,000 | | 23,771 |
Vistra Operations Co LLC - 144A 5.000% 07/31/2027 Callable @ 101.250 07/31/2023 | | 80,000 | | 75,566 |
Vistra Operations Co LLC - 144A 5.625% 02/15/2027 Callable @ 100.000 02/15/2024 | | 42,000 | | 40,554 |
| | | | $ | 534,598 |
| | | | | |
TOTAL CORPORATE BONDS (COST: $51,604,964) | | | $ | 46,058,234 |
| | | | | |
COMMON STOCKS (1.2%) | | | | |
| | | | | |
Communication Services (0.3%) | | Shares | | |
(3) Frontier Communications Parent Inc | | 2,688 | | 48,949 |
(3) iHeartMedia Inc | | 1,902 | | 8,996 |
+^(3) Intelsat Emergence SA | | 3,888 | | 92,340 |
| | | | $ | 150,285 |
Consumer Discretionary (0.7%) | | | | |
+^(3) CLAIRE’S Stores | | 58 | | 15,950 |
(3) Clear Channel Outdoor Holdings | | 4,640 | | 8,352 |
+^(3) MyTheresa Series B Common Shares | | 21,320 | | 10,127 |
+^(3) NMG Parent LLC** | | 240 | | 30,301 |
VICI Properties, Inc | | 8,709 | | 274,159 |
| | | | $ | 338,889 |
Energy (0.2%) | | | | |
(3) Chesapeake Energy Corp | | 12 | | 1,012 |
+^(3) EP Energy Corp | | 2,035 | | 14,245 |
Oasis Petroleum Inc | | 459 | | 71,990 |
| | | | $ | 87,247 |
Health Care (0.0%) | | | | |
+^(3) International Oncology Care Inc** | | 1,633 | | 23,252 |
(3) Mallinckrodt Equity | | 920 | | 1,490 |
| | | | $ | 24,742 |
| | | | | |
TOTAL COMMON STOCK (COST: $964,896) | | | $ | 601,163 |
| | | | | |
CONVERTIBLE PREFERRED STOCKS (0.3%) | | | | |
| | | | | |
Consumer Discretionary (0.3%) | | Shares | | |
+^ CLAIRE’S Convertible Preferred Equity | | 43 | | 93,525 |
+^ MYT Holding Co (144A Series A) | | 53,840 | | 43,745 |
| | | | | 137,270 |
| | | | | |
TOTAL CONVERTIBLE PREFERRED STOCK (COST: $75,999) | | | $ | 137,270 |
| | | | | |
WARRANTS (0.0%) | | | | |
Communication Services (0.0%) | | Shares | | |
+^(3) Intelsat Jackson Holdings SA Series A | | 405 | | 4 |
+^(3) Intelsat Jackson Holdings SA Series B | | 405 | | 4 |
| | | | $ | 8 |
Consumer Discretionary (0.0%) | | | | |
+^(3) NMG Warrants | | 690 | $ | 15,525 |
| | | | | |
TOTAL WARRANTS (COST: $1,797) | | | $ | 15,533 |
| | | | | |
TOTAL INVESTMENTS IN SECURITIES (COST: $52,647,656) (95.9%) | | | $ | 46,812,200 |
| | | | | |
OTHER ASSETS LESS LIABILITIES (4.1%) | | | $ | 2,019,761 |
| | | | | |
NET ASSETS (100%) | | | $ | 48,831,961 |
| | | | | |
| | | | | |
(1) Interest or dividend is paid-in-kind, when applicable. Rate paid in-kind is shown in parenthesis. |
(2) Security is perpetual and thus, does not have a predetermined maturity date. The coupon rate for this security is fixed for a period of time and may be structured to adjust thereafter. The date shown, if applicable, reflects the next call date. The coupon rate shown is the rate in effect as of July 31, 2023. |
(3) Non-income producing security. |
(4) Issue is in default. |
(5) Interest or dividend is partial paid-in-kind and partial cash. Rate paid in-kind is shown in parenthesis. |
*Indicates all or a portion of bonds are segregated by the custodian to cover when-issued or delayed-delivery purchases when they occur. |
** All or a portion of the security is considered restricted at July 31, 2023. See Note 2. |
# When-issued purchase as of July 31, 2023. |
+ The level 3 assets were a result of unavailable quoted prices from and active market or the unavailability of other significant observable inputs. See Note 3. |
^ Deemed by management to be illiquid security. See Note 2. Total fair value of illiquid securities amount to $339,059, representing 0.7% of net assets as of July 31, 2023. |
144A - Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid under procedures approved by the Fund’s Board of Trustees and may normally be sold to qualified institutional buyers in transactions exempt from registration. Total fair value of Rule 144A Securities amounts to $35,690,798 representing 73.1% of net assets as of July 31, 2023. |
PLC - Public Limited Company |
|
|
The accompanying notes are an integral part of these financial statements. |
INTEGRITY MID-NORTH AMERICAN RESOURCES FUND
PORTFOLIO MARKET SECTORS July 31, 2023
Energy | 83.5% |
Cash Equivalents and Other | 4.3% |
Industrials | 4.1% |
Materials | 3.3% |
Information Technologies | 1.9% |
Consumer Staples | 1.9% |
Utilities | 1.0% |
| 100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS July 31, 2023
| | | | | Fair |
| | | Shares | | Value |
COMMON STOCKS (95.7%) | | | | |
| | | | | |
Consumer Staples (1.9%) | | | | |
*Darling Ingredients Inc | | 39,000 | $ | 2,700,750 |
| | | | | |
Energy (83.5%) | | | | |
*Antero Resources Corp | | 111,000 | | 2,969,250 |
Baker Hughes a GE Co | | 30,000 | | 1,073,700 |
Coterra EnerCoterra Energy Inc | | 55,000 | | 1,514,700 |
Cactus Inc | | 82,000 | | 4,163,960 |
ChampionX Corp | | 60,000 | | 2,136,000 |
Cheniere Energy Inc | | 71,000 | | 11,492,060 |
Devon Energy Corp | | 75,000 | | 4,050,000 |
Diamondback Energy Inc | | 40,000 | | 5,892,800 |
EOG Resources Inc | | 18,000 | | 2,385,540 |
Enbridge Inc | | 139,000 | | 5,115,200 |
Excelerate Energy Inc | | 80,000 | | 1,697,600 |
Exxon Mobil Corp | | 47,000 | | 5,040,280 |
Halliburton Co | | 125,000 | | 4,885,000 |
Marathon Oil Corp | | 230,000 | | 6,042,100 |
Marathon Petroleum Corp | | 7,000 | | 931,140 |
New Fortress Energy Inc | | 98,000 | | 2,797,900 |
*NexTier Oilfield Solutions Inc | | 610,000 | | 7,271,200 |
Ovintiv Inc | | 60,000 | | 2,765,400 |
Pembina Pipeline Corp | | 60,000 | | 1,900,800 |
Permian Resources Corp | | 350,000 | | 4,091,500 |
Phillips 66 | | 41,000 | | 4,573,550 |
Pioneer Natural Resources Co | | 20,000 | | 4,513,400 |
*ProFrac Holding Corp | | 20,000 | | 257,400 |
Shell PLC | | 80,000 | | 4,930,400 |
Solaris Oilfield Infrastructure Inc | | 95,000 | | 1,038,350 |
Targa Resources Corp | | 120,000 | | 9,838,800 |
TransCanada Corp | | 60,000 | | 2,152,200 |
Tenaris SA | | 190,000 | | 6,363,100 |
Valero Energy Corp | | 30,000 | | 3,867,300 |
| | | | | 115,750,630 |
Industrials (4.1%) | | | | |
*Array Technologies Inc | | 110,000 | | 2,095,500 |
*Generac Holdings Inc | | 12,000 | | 1,844,400 |
*Plug Power Inc | | 28,000 | | 367,360 |
*Shoals Technologies Group Inc | | 54,000 | | 1,401,840 |
| | | | | 5,709,100 |
Information Technologies (1.9%) | | | | |
*Enphase Energy Inc | | 10,000 | | 1,518,300 |
*SolarEdge Technologies Inc | | 4,500 | | 1,086,570 |
| | | | | 2,604,870 |
Materials (3.3%) | | | | |
Olin Corp | | 80,000 | | 4,614,400 |
| | | | | |
Utilities (1.0%) | | | | |
*Sunnova Energy International Inc | | 77,000 | | 1,359,820 |
| | | | | |
TOTAL COMMON STOCKS (COST: $110,953,850) | | | $ | 132,739,570 |
| | | | | |
SHORT-TERM INVESTMENTS (4.4%) | | | | |
(a) Morgan Stanley Inst’l Liquidity Fund, 5.19% | | 6,139,075 | | 6,139,075 |
TOTAL SHORT-TERM INVESTMENTS (Cost $6,139,075) | | | $ | 6,139,075 |
| | | | | |
TOTAL INVESTMENTS (Cost $117,092,925) (100.1) | | | | 138,878,645 |
| | | | | |
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.1%) | | | $ | (196,860) |
| | | | | |
NET ASSETS (100.0%) | | | $ | 138,681,785 |
| |
*Non-income producing |
PLC - Public Limited Company |
ADR - American Depositary Receipt |
(a) Seven day yield as of July 31, 2023. |
|
|
The accompanying notes are an integral part of these financial statements. |
INTEGRITY SHORT TERM GOVERNMENT FUND
PORTFOLIO MARKET SECTORS July 31, 2023
Mortgage Backed Securities | 96.7% |
U.S. Government Note/Bonds | 2.1% |
Cash Equivalents and Other | 1.2% |
| 100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS July 31, 2023
| | | Principal | | Fair |
| | | Amount | | Value |
MORTGAGE BACKED SECURITIES (96.7%) | | | | |
| | | | | |
Fannie Mae Pool (23.1%) | | | | |
FN 252284 6.5% 1/1/2029 | | 28,315 | | 28,511 |
FN 47935 4.891% 5/1/2027 (11th District COFI Replacement Index + 1.254%)(a) | | 474 | | 467 |
FN 555326 5.5% 4/1/2033 | | 63,074 | | 64,407 |
FN 745751 5.5% 9/1/2035 | | 15,255 | | 15,578 |
FN 748375 5.458% 8/1/2033 | | 575 | | 565 |
FN 888073 5.5% 2/1/2035 | | 10,827 | | 11,056 |
FN AL5259 3.5% 5/1/2029 | | 82,179 | | 78,584 |
FN AL7654 3% 9/1/2035 | | 99,297 | | 92,129 |
FN AL9858 3% 3/1/2030 | | 77,725 | | 74,357 |
FN BM1231 3.5% 11/1/2031 | | 105,380 | | 101,941 |
FN BM1244 3.5% 6/1/2032 | | 122,861 | | 117,456 |
FN BM3428 3.5% 1/1/2033 | | 49,093 | | 46,832 |
FN BP6466 3% 7/1/2050 | | 171,264 | | 150,788 |
FN BP8780 3% 7/1/2050 | | 206,134 | | 183,439 |
FN BX3957 6% 1/1/2053 | | 37,780 | | 38,037 |
FN BY1788 6% 5/1/2053 | | 159,677 | | 160,606 |
FN CA6065 3% 6/1/2050 | | 136,373 | | 116,650 |
FN CB0573 2.5% 5/1/2046 | | 261,470 | | 223,983 |
FN CB5525 6% 1/1/2053 | | 428,963 | | 432,305 |
FN CB5542 5.5% 1/1/2053 | | 48,937 | | 48,790 |
FN FM1487 4% 9/1/2039 | | 25,533 | | 24,437 |
FN FM2209 3.5% 1/1/2035 | | 60,281 | | 57,326 |
FN FM6742 3% 8/1/2040 | | 156,832 | | 142,328 |
FN FS0600 3% 2/1/2050 | | 116,564 | | 103,332 |
FN FS3411 6% 1/1/2053 | | 161,900 | | 163,585 |
FN MA3067 3.5% 7/1/2047 | | 108,985 | | 98,249 |
FN MA3725 3.5% 7/1/2049 | | 36,190 | | 32,176 |
FN MA4908 6% 1/1/2043 | | 456,639 | | 461,208 |
FN MA4935 6% 2/1/2043 | | 192,503 | | 194,433 |
FN MA5031 7% 4/1/2053 | | 199,574 | | 202,687 |
| | | | | 3,466,242 |
Fannie Mae Remics (3.4%) | | | | |
FNR 2007-54 EF 5.74206% 6/25/2037 (SOFR 30 Day Average + 0.340%)(a) | | 230,205 | | 224,821 |
FNR 2023-14 E 6% 6/25/2048 | | 281,283 | | 281,259 |
| | | | | 506,080 |
Fannie Mae-Aces (2.9%) | | | | |
FNA 2015-M3 X2 0.395752% 10/25/2024 (b)(c) | | 24,662,277 | | 52,999 |
FNA 2019-M32 X2 1.22486% 10/25/2029 (b)(c) | | 4,169,514 | | 214,159 |
FNA 2020-M10 X6 1.50065% 8/25/2028 (b)(c) | | 3,437,736 | | 171,894 |
| | | | | 439,052 |
FHLMC-GNMA (0.0%) | | | | |
FHG 23 FC 5.85206% 11/25/2023 (SOFR 30 Day Average + 0.450%)(a) | | 768 | | 767 |
| | | | | |
Freddie Mac Pool (17.5%) | | | | |
FR QF6560 5.5% 1/1/2053 | | 433,132 | | 430,236 |
FR QF8178 6% 2/1/2053 | | 171,926 | | 172,926 |
FR QF8450 6% 3/1/2053 | | 95,900 | | 96,630 |
FR QG1921 6.5% 5/1/2053 | | 199,674 | | 203,758 |
FR QG5777 6.5% 6/1/2053 | | 99,918 | | 101,955 |
FR QG6170 6% 7/1/2053 | | 149,918 | | 150,893 |
FR QN5456 2% 3/1/2036 | | 303,507 | | 269,615 |
FR QS0276 6% 2/1/2033 | | 285,541 | | 290,508 |
FR RB5221 6% 2/1/2043 | | 431,212 | | 435,535 |
FR ZA5250 4% 1/1/2048 | | 226,897 | | 216,005 |
FR ZS8598 3% 2/1/2031 | | 127,359 | | 119,497 |
FR ZS8670 3.5% 9/1/2032 | | 140,151 | | 133,971 |
| | | | | 2,621,529 |
Freddie Mac Gold Pool (6.3%) | | | | |
FG C91993 3.5% 5/1/2038 | | 127,815 | | 120,441 |
FG G01584 5% 8/1/2033 | | 27,359 | | 27,501 |
FG G13390 6% 1/1/2024 | | 6 | | 6 |
FG G13610 5.5% 2/1/2024 | | 94 | | 94 |
FG G13692 5.5% 2/1/2024 | | 45 | | 44 |
FG G14160 6% 1/1/2024 | | 5 | | 5 |
FG G16406 3% 1/1/2028 | | 49,472 | | 47,527 |
FG G16502 3.5% 5/1/2033 | | 105,028 | | 100,516 |
FG G18524 3% 9/1/2029 | | 103,952 | | 98,952 |
FG G18601 3% 5/1/2031 | | 144,768 | | 136,130 |
FG G18605 3% 6/1/2031 | | 95,768 | | 90,057 |
FG G18655 3% 8/1/2032 | | 147,916 | | 139,094 |
FG H09207 6.5% 8/1/2038 | | 9,058 | | 9,122 |
FG NB0014 3.5% 4/1/2049 | | 185,699 | | 170,643 |
| | | | | 940,132 |
Freddie Mac Multifamily Structured Pass Through Certificates (6.5%) | | | | |
FHMS K078 XAM 0.146892% 6/25/2028 (b)(c) | | 33,580,000 | | 101,311 |
FHMS K111 X1 1.680126% 5/25/2030 (b)(c) | | 3,059,824 | | 253,323 |
FHMS K115 X1 1.427518% 6/25/2030 (b)(c) | | 1,395,012 | | 99,084 |
FHMS K724 X1 0.338187% 11/25/2023 (b)(c) | | 3,389,525 | | 1,061 |
FHMS K736 X1 1.410217% 7/25/2026 (b)(c) | | 5,992,620 | | 179,952 |
FHMS K738 X1 1.624385% 1/25/2027 (b)(c) | | 1,881,903 | | 79,132 |
FHMS K742 X1 0.867346% 3/25/2028 (b)(c) | | 2,494,537 | | 60,388 |
FHMS Q004 A2H 4.497425% 1/25/2046 (b) | | 109,941 | | 109,223 |
FHMS Q007 APT1 5.331549% 10/25/2047 (b) | | 24,711 | | 24,595 |
FHMS Q016 XPT1 0.981% 5/25/2026 (b)(c) | | 3,029,152 | | 62,694 |
| | | | | 970,763 |
Freddie Mac REMICS (3.2%) | | | | |
FHR 2344 ZD 6.5% 8/15/2031 | | 7,928 | | 8,050 |
FHR 3784 PD 4% 1/15/2026 | | 1,377 | | 1,358 |
FHR 4753 GT 3% 2/15/2045 | | 85,847 | | 85,087 |
FHR 5229 MD 4% 1/25/2046 | | 401,840 | | 382,980 |
| | | | | 477,475 |
FRESB Mortgage Trust (4.1%) | | | | |
FRESB 2015-SB2 A5 5.91593% 7/25/2035 (SOFR 30 Day Average + 0.700%)(a) | | 44,001 | | 43,676 |
FRESB 2015-SB3 A5 5.91593% 8/25/2042 (SOFR 30 Day Average + 0.700%)(a) | | 3,201 | | 3,177 |
FRESB 2015-SB7 A5 5.91593% 9/25/2035 (SOFR 30 Day Average + 0.700%)(a) | | 195,188 | | 193,819 |
FRESB 2016-SB13 A5H 5.91593% 1/25/2036 (SOFR 30 Day Average + 0.700%)(a) | | 119,921 | | 118,891 |
FRESB 2016-SB16 A5H 5.91593% 5/25/2036 (SOFR 30 Day Average + 0.700%)(a) | | 58,702 | | 58,123 |
FRESB 2019-SB60 A5H 3.07% 1/25/2039 (b) | | 205,136 | | 201,903 |
| | | | | 619,589 |
Ginnie Mae I Pool (0.2%) | | | | |
GN 741854 4% 5/15/2025 | | 14,070 | | 13,832 |
GN 782618 4.5% 4/15/2024 | | 9,807 | | 9,643 |
| | | | | 23,475 |
Ginnie Mae II Pool (5.7%) | | | | |
G2 785316 7.151% 9/20/2070 (SOFR 30 Day Average + 2.004%)(a) | | 74,638 | | 75,848 |
G2 MA6402 4.5% 1/20/2050 | | 15,210 | | 14,504 |
G2 MA8650 6.5% 2/20/2053 | | 393,539 | | 399,448 |
G2 MA8728 6.5% 3/20/2053 | | 197,063 | | 200,050 |
G2 MA8803 6.5% 4/20/2053 | | 158,624 | | 161,036 |
| | | | | 850,886 |
Government National Mortgage Association (22.1%) | | | | |
GNR 2013-105 IO 0.18818% 6/16/2054 (b)(c) | | 4,327,929 | | 5,830 |
GNR 2013-15 IO 0.56228% 8/16/2051 (b)(c) | | 1,849,527 | | 34,919 |
GNR 2013-33 IO 0.21384% 4/16/2054 (b)(c) | | 5,839,582 | | 17,665 |
GNR 2014-73 IO 0.42239% 4/16/2056 (b)(c) | | 2,853,581 | | 33,558 |
GNR 2015-130 IO 0.70668% 7/16/2057 (b)(c) | | 1,380,052 | | 34,362 |
GNR 2015-97 A 2.4% 4/16/2043 | | 189,612 | | 179,892 |
GNR 2016-158 IO 0.75618% 6/16/2058 (b)(c) | | 2,316,231 | | 76,445 |
GNR 2016-34 IO 0.9115% 1/16/2058 (b)(c) | | 2,517,966 | | 94,270 |
GNR 2016-94 IO 0.81405% 12/16/2057 (b)(c) | | 2,957,337 | | 88,883 |
GNR 2017-143 IO 0.47361% 1/16/2059 (b)(c) | | 2,660,648 | | 72,716 |
GNR 2017-28 IO 0.68038% 2/16/2057 (b)(c) | | 2,198,800 | | 75,969 |
GNR 2017-76 IO 0.79074% 12/16/2056 (b)(c) | | 1,932,369 | | 78,234 |
GNR 2017-H22 IC 0.34109% 11/20/2067 (b)(c) | | 991,752 | | 33,408 |
GNR 2018-108 IA 0.67184% 8/16/2060 (b)(c) | | 888,370 | | 52,396 |
GNR 2018-119 IO 0.67284% 5/16/2060 (b)(c) | | 661,571 | | 34,781 |
GNR 2018-2 IO 0.70596% 12/16/2059 (b)(c) | | 1,307,786 | | 55,446 |
GNR 2020-121 IO 0.91053% 8/16/2060 (b)(c) | | 1,020,911 | | 62,787 |
GNR 2020-132 IO 0.84941% 9/16/2062 (b)(c) | | 1,524,685 | | 93,530 |
GNR 2020-168 IA 0.97768% 12/16/2062 (b)(c) | | 1,077,439 | | 72,980 |
GNR 2020-40 IO 0.87507% 1/16/2062 (b)(c) | | 1,665,058 | | 93,353 |
GNR 2020-57 JI 1.8006% 1/16/2060 (b)(c) | | 2,799,347 | | 308,695 |
GNR 2020-87 AI 1.86704% 5/16/2060 (b)(c) | | 887,867 | | 101,648 |
GNR 2020-H04 IO 0.01615% 2/20/2070 (b)(c) | | 539,973 | | 27,899 |
GNR 2020-H11 IO 0.03555% 6/20/2070 (b)(c) | | 2,807,669 | | 154,349 |
GNR 2020-H12 IG 0% 7/20/2070 (b)(c) | | 2,055,287 | | 63,788 |
GNR 2020-H12 IJ 0.13194% 7/20/2070 (b)(c) | | 1,892,204 | | 112,997 |
GNR 2020-H19 SI 0% 10/20/2070 (b)(c) | | 1,021,936 | | 22,851 |
GNR 2021-10 IO 0.98616% 5/16/2063 (b)(c) | | 1,374,835 | | 95,529 |
GNR 2021-110 IO 0.8725% 11/16/2063 (b)(c) | | 2,230,585 | | 142,639 |
GNR 2021-147 IO 0.98553% 6/16/2061 (b)(c) | | 686,109 | | 47,624 |
GNR 2021-150 IO 1.03205% 11/16/2063 (b)(c) | | 1,042,621 | | 77,224 |
GNR 2021-36 IO 1.26187% 3/16/2063 (b)(c) | | 2,139,467 | | 177,186 |
GNR 2021-37 IO 0.80476% 1/16/2061 (b)(c) | | 1,718,314 | | 101,150 |
GNR 2021-47 IO 0.99215% 3/16/2061 (b)(c) | | 1,097,546 | | 73,742 |
GNR 2021-H06 YI 1.20237% 4/20/2071 (b)(c) | | 1,704,224 | | 95,530 |
GNR 2021-H08 VF 6.30145% 4/20/2071 (SOFR 30 Day Average + 1.200%)(a) | | 220,704 | | 223,069 |
GNR 2021-H11 IY 0.38258% 7/20/2071 (b)(c) | | 2,546,300 | | 62,538 |
GNR 2022-H07 IG 1.78667% 2/20/2072 (b)(c) | | 1,637,677 | | 67,723 |
GNR 2023-H02 IK 1.22719% 1/20/2073 (b)(c) | | 1,054,453 | | 74,550 |
| | | | | 3,322,155 |
Seasoned Credit Risk Transfer Trust Series (1.7%) | | | | |
SCRT 2018-3 MA 3.5% 8/25/2057 (b) | | 51,749 | | 48,605 |
SCRT 2020-3 M5TW 3% 5/25/2060 | | 85,472 | | 75,489 |
SCRT 2021-1 TTU 2.5% 9/25/2060 | | 171,374 | | 153,510 |
| | | | | 277,604 |
| | | | | |
TOTAL MORTGAGE BACKED SECURITIES (Cost: $16,406,478) | | | $ | 14,515,749 |
| | | | | |
U.S. GOVERNMENT NOTES/BONDS (2.1%) | | | | |
United States Treasury 30-Year Bond 6.25% 08/15/2023 | | 320,000 | | 320,079 |
TOTAL U.S. GOVERNMENT NOTES/BONDS (Cost $320,188) | | | $ | 320,079 |
| | | | | |
SHORT-TERM INVESTMENTS (0.7%) | | | | |
Morgan Stanley Institutional Liquidity Fund, 5.19% (d) | | 106,073 | | 106,073 |
TOTAL SHORT-TERM INVESTMENTS (Cost $106,073) | | | $ | 106,073 |
| | | | | |
TOTAL INVESTMENTS (Cost $16,832,739) (99.5%) | | | $ | 14,941,901 |
| | | | | |
OTHER ASSETS LESS LIABILITIES (0.5%) | | | $ | 70,283 |
| | | | | |
NET ASSETS (100.0%) | | | $ | 15,012,184 |
| |
(a) Variable rate security; the rate shown represents the rate at July 31, 2023. Coupon may be fixed for a period of time. |
(b) Variable rate security; the rate shown represents the rate at July 31, 2023. The coupon is based on an underlying pool of loans. |
(c) Represents an interest-only security that entitles holders to receive only interest payments on underlying mortgages. |
(d) Seven day yield as of July 31, 2023. |
| |
ECOFC - Enterprise 11th District COFI Replacement Index |
1 Month ECOFC - 1 Month ECOFC rate disclosed as of July 31, 2023, based on the last reset date of the security. |
SOFR - Secured Overnight Financing Rate |
SOFR 30 Day Average - SOFR 30 Day Average, rate disclosed as of July 31, 2023, based on the last reset date of the security. |
11th District COFI Replacement Index rate disclosed as of July 31, 2023, based on the last reset date of the security. |
|
|
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Assets and Liabilities | July 31, 2023
| | Dividend | | Dividend | | Growth |
| | Harvest | | Summit | | & Income |
| | Fund | | Fund | | Fund |
ASSETS | | | | | | | | |
Investments in securities, at cost | $ | 300,380,881 | | $ | 628,771 | | $ | 53,378,647 |
| | | | | | | | |
Investments in securities, at value | $ | 338,040,033 | | $ | 650,119 | | $ | 84,194,703 |
Cash and cash equivalents | | - | | | - | | | - |
Security sales receivable | | 102,419 | | | - | | | - |
Receivable for Fund shares sold | | 271,839 | | | - | | | 34,749 |
Accrued dividends receivable | | 1,118,363 | | | 2,085 | | | 87,503 |
Accrued interest receivable | | 20,292 | | | 211 | | | 25,422 |
Receivable from affiliate | | 143,373 | | | 6,472 | | | 33,728 |
Prepaid expenses | | 41,465 | | | - | | | 2,768 |
Other assets | | 2,785 | | | - | | | - |
Total assets | $ | 339,740,569 | | $ | 658,887 | | $ | 84,378,873 |
| | | | | | | | |
LIABILITIES | | | | | | | | |
Payable for Fund shares redeemed | | 1,013,967 | | | - | | | 21,019 |
Trustees’ fees payable | | 16,431 | | | 54 | | | 4,553 |
Payable to affiliates | | 354,398 | | | 5,854 | | | 121,703 |
Accrued expenses | | 65,014 | | | 392 | | | 21,941 |
Due to custodian | | 15,128 | | | 1,318 | | | - |
Total liabilities | $ | 1,464,938 | | $ | 7,618 | | $ | 169,216 |
| | | | | | | | |
NET ASSETS | $ | 338,275,631 | | $ | 651,269 | | $ | 84,209,657 |
| | | | | | | | |
NET ASSETS ARE REPRESENTED BY: | | | | | | | | |
Capital stock outstanding, $.001 par value, unlimited shares authorized | $ | 307,562,541 | | $ | 637,308 | | $ | 52,333,336 |
Distributable earnings | | 30,713,090 | | | 13,961 | | | 31,876,321 |
| | | | | | | | |
NET ASSETS | $ | 338,275,631 | | $ | 651,269 | | $ | 84,209,657 |
| | | | | | | | |
Net Assets - Class A | $ | 111,908,770 | | $ | 50,870 | | $ | 52,271,632 |
Net Assets - Class C | $ | 27,906,344 | | $ | 50,968 | | $ | 6,304,410 |
Net Assets - Class I | $ | 198,460,517 | | $ | 549,431 | | $ | 25,633,615 |
Shares outstanding - Class A | | 6,808,126 | | | 5,000 | | | 636,606 |
Shares outstanding - Class C | | 1,712,647 | | | 5,000 | | | 79,440 |
Shares outstanding - Class I | | 12,063,499 | | | 54,032 | | | 311,316 |
Net asset value per share - Class A* | | $16.44 | | | $10.17 | | | $82.11 |
Maximum sales charge - Class A | | 5.00% | | | 5.00% | | | 5.00% |
Public offering price per share - Class A | | $17.31 | | | $10.71 | | | $86.43 |
Net asset value per share - Class C* | | $16.29 | | | $10.19 | | | $79.36 |
Net asset value per share - Class I | | $16.45 | | | $10.17 | | | $82.34 |
| |
* Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. | |
| |
The accompanying notes are an integral part of these financial statements. | |
| | | | | | | | | | |
FINANCIAL STATEMENTS
Statements of Assets and Liabilities | July 31, 2023
| | High | | MNA | | Short Term |
| | Income | | Resources | | Government |
| | Fund | | Fund | | Fund |
ASSETS | | | | | | | | |
Investments in securities, at cost | $ | 52,647,656 | | $ | 117,092,925 | | $ | 16,832,739 |
| | | | | | | | |
Investments in securities, at value | $ | 46,812,200 | | $ | 138,878,645 | | $ | 14,941,901 |
Cash and cash equivalents | | 1,350,220 | | | - | | | - |
Receivable for Fund shares sold | | 86,934 | | | 43,835 | | | - |
Accrued dividends receivable | | - | | | 96,047 | | | - |
Accrued interest receivable | | 778,918 | | | 18,847 | | | 121,609 |
Receivable from affiliate | | 26,502 | | | 13,788 | | | 4,123 |
Prepaid expenses | | - | | | 10,221 | | | 10,719 |
Other assets | | 1,199 | | | - | | | - |
Total assets | $ | 49,055,973 | | $ | 139,061,383 | | $ | 15,078,352 |
| | | | | | | | |
LIABILITIES | | | | | | | | |
Payable for securities purchased | $ | 21,000 | | $ | - | | $ | - |
Payable for Fund shares redeemed | | 65,505 | | | 169,695 | | | 3,962 |
Distributions payable | | 42,940 | | | - | | | - |
Trustees’ fees payable | | 3,162 | | | 9,030 | | | 1,224 |
Payable to affiliates | | 67,065 | | | 176,029 | | | 15,974 |
Accrued expenses | | 24,340 | | | 24,844 | | | 45,008 |
Total liabilities | $ | 224,012 | | $ | 379,598 | | $ | 66,168 |
| | | | | | | | |
NET ASSETS | $ | 48,831,961 | | $ | 138,681,785 | | $ | 15,012,184 |
| | | | | | | | |
NET ASSETS ARE REPRESENTED BY: | | | | | | | | |
Capital stock outstanding, $.001 par value, unlimited shares authorized | $ | 55,533,437 | | $ | 306,908,807 | | $ | 25,210,637 |
Distributable earnings (accumulated losses) | | (6,701,476) | | | (168,227,022) | | | (10,198,453) |
| | | | | | | | |
NET ASSETS | $ | 48,831,961 | | $ | 138,681,785 | | $ | 15,012,184 |
| | | | | | | | |
Net Assets - Class A | $ | 22,890,644 | | $ | 87,706,340 | | $ | 307,936 |
Net Assets - Class C | $ | 3,364,324 | | $ | 6,571,262 | | $ | N/A |
Net Assets - Class I | $ | 22,576,993 | | $ | 44,404,183 | | $ | 14,704,248 |
Shares outstanding - Class A | | 3,210,050 | | | 16,549,600 | | | 37,422 |
Shares outstanding - Class C | | 470,673 | | | 1,248,254 | | | N/A |
Shares outstanding - Class I | | 3,168,905 | | | 8,451,359 | | | 1,784,490 |
Net asset value per share - Class A* | | $7.13 | | | $5.30 | | | $8.23 |
Maximum sales charge - Class A | | 4.25% | | | 5.00% | | | 2.00% |
Public offering price per share - Class A | | $7.45 | | | $5.58 | | | $8.40 |
Net asset value per share - Class C* | | $7.15 | | | $5.26 | | | N/A |
Net asset value per share - Class I | | $7.12 | | | $5.25 | | | $8.24 |
| | | | | | | | |
* Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Operations | For the year ended July 31, 2023
| | Dividend | | Dividend | | Growth |
| | Harvest | | Summit | | & Income |
| | Fund | | Fund * | | Fund |
INVESTMENT INCOME | | | | | | | | |
Dividends (net of foreign withholding taxes of $209,759, $667 and $0, respectively) | $ | 12,425,310 | | $ | 8,738 | | $ | 1,257,805 |
Interest | | 57,263 | | | 497 | | | 78,475 |
Total investment income | $ | 12,482,573 | | $ | 9,235 | | $ | 1,336,280 |
| | | | | | | | |
EXPENSES | | | | | | | | |
Investment advisory fees | $ | 2,238,693 | | $ | 1,119 | | $ | 727,014 |
Distribution (12b-1) fees - Class A | | 272,701 | | | 30 | | | 118,235 |
Distribution (12b-1) fees - Class C | | 247,164 | | | 121 | | | 56,700 |
Transfer agent fees | | 519,739 | | | 3,261 | | | 142,863 |
Administrative service fees | | 456,039 | | | 12,176 | | | 149,780 |
Professional fees | | 72,411 | | | 125 | | | 15,121 |
Reports to shareholders | | 19,618 | | | 38 | | | 8,123 |
License, fees, and registrations | | 45,871 | | | 1,576 | | | 43,560 |
Audit fees | | 51,905 | | | 164 | | | 12,455 |
Trustees’ fees | | 24,419 | | | 54 | | | 8,289 |
Transfer agent out-of-pockets | | 47,524 | | | 135 | | | 22,485 |
Custodian fees | | 25,058 | | | 56 | | | 9,846 |
Legal fees | | 30,292 | | | 45 | | | 7,887 |
Insurance expense | | 3,865 | | | 9 | | | 1,289 |
Total expenses | $ | 4,055,299 | | $ | 18,909 | | $ | 1,323,647 |
Less expenses waived or reimbursed (See Note 7) | | (1,443,402) | | | (18,895) | | | (429,172) |
Total net expenses | $ | 2,611,897 | | $ | 14 | | $ | 894,475 |
| | | | | | | | |
NET INVESTMENT INCOME (LOSS) | $ | 9,870,676 | | $ | 9,221 | | $ | 441,805 |
| | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | | | | | | | | |
Net realized gain (loss) from investment transactions | $ | 308,372 | | $ | (7,387) | | $ | 795,915 |
Net change in unrealized appreciation (depreciation) of investments | | 6,733,207 | | | 21,348 | | | 7,795,435 |
Net realized and unrealized gain (loss) on investments | $ | 7,041,579 | | $ | 13,961 | | $ | 8,591,350 |
| | | | | | | | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 16,912,255 | | $ | 23,182 | | $ | 9,033,155 |
| | | | | | | | |
* For the period May 1, 2023 (commencement of operations) through July 31, 2023. |
| | | | | | | | | |
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Operations | For the year ended July 31, 2023
| | High | | MNA | | Short Term |
| | Income | | Resources | | Government |
| | Fund | | Fund | | Fund |
INVESTMENT INCOME | | | | | | | | |
Dividends (net of foreign withholding taxes of $0, $88,440, and $0, respectively) | $ | 29,436 | | $ | 4,273,570 | | $ | - |
Interest | | 2,980,746 | | | 60,197 | | | 115,871 |
Total investment income | $ | 3,010,182 | | $ | 4,333,767 | | $ | 115,871 |
| | | | | | | | |
EXPENSES | | | | | | | | |
Investment advisory fees | $ | 417,472 | | $ | 705,737 | | $ | 49,488 |
Distribution (12b-1) fees - Class A | | 58,977 | | | 445,739 | | | 1,544 |
Distribution (12b-1) fees - Class C | | 32,916 | | | 75,484 | | | - |
Transfer agent fees | | 70,938 | | | 266,066 | | | 25,800 |
Administrative service fees | | 116,759 | | | 245,605 | | | 59,022 |
Professional fees | | 10,131 | | | 35,935 | | | 7,950 |
Reports to shareholders | | 5,525 | | | 10,670 | | | - |
License, fees, and registrations | | 29,709 | | | 49,803 | | | 12,654 |
Audit fees | | 8,811 | | | 28,010 | | | 2,005 |
Trustees’ fees | | 5,569 | | | 14,498 | | | 2,629 |
Transfer agent out-of-pockets | | 16,131 | | | 111,296 | | | 5,497 |
Custodian fees | | 16,663 | | | 13,441 | | | 11,458 |
Legal fees | | 5,534 | | | 16,599 | | | 1,000 |
Insurance expense | | 1,001 | | | 2,390 | | | - |
Total expenses | $ | 796,136 | | $ | 2,021,273 | | $ | 179,047 |
Less expenses waived or reimbursed (See Note 7) | | (340,855) | | | (89,643) | | | (86,774) |
Total net expenses | $ | 455,281 | | $ | 1,931,630 | | $ | 92,273 |
| | | | | | | | |
NET INVESTMENT INCOME (LOSS) | $ | 2,554,901 | | $ | 2,402,137 | | $ | 23,598 |
| | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | | | | | | | | |
Net realized gain (loss) from investment transactions | $ | (446,689) | | $ | 17,924,236 | | $ | (2,204,207) |
Net change in unrealized appreciation (depreciation) of investments | | (1,030,827) | | | (12,160,937) | | | 1,696,615 |
Net realized and unrealized gain (loss) on investments | $ | (1,477,516) | | $ | 5,763,299 | | $ | (507,592) |
| | | | | | | | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,077,385 | | $ | 8,165,436 | | $ | (483,994) |
| | | | | | | | | |
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Changes in Net Assets | For the year ended July 31, 2023
| | Dividend | | Dividend | | Growth |
| | Harvest | | Summit | | & Income |
| | Fund | | Fund * | | Fund |
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | | | | | | | | |
Net investment income (loss) | $ | 9,870,676 | | $ | 9,221 | | $ | 441,805 |
Net realized gain (loss) from investment transactions | | 308,372 | | | (7,387) | | | 795,915 |
Net change in unrealized appreciation (depreciation) of investments | | 6,733,207 | | | 21,348 | | | 7,795,435 |
Net increase (decrease) in net assets resulting from operations | $ | 16,912,255 | | $ | 23,182 | | $ | 9,033,155 |
| | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS | | | | | | | | |
Distributions - Class A | $ | (4,929,518) | | $ | (739) | | $ | (624,715) |
Distributions - Class C | | (926,454) | | | (646) | | | (48,221) |
Distributions - Class I | | (7,802,863) | | | (7,835) | | | (255,733) |
Total distributions | $ | (13,658,835) | | $ | (9,220) | | $ | (928,669) |
| | | | | | | | |
CAPITAL SHARE TRANSACTIONS | | | | | | | | |
Proceeds from sale of shares - Class A | $ | 20,446,194 | | $ | 50,000 | | $ | 3,490,627 |
Proceeds from sale of shares - Class C | | 7,866,830 | | | 50,000 | | | 960,177 |
Proceeds from sale of shares - Class I | | 107,819,407 | | | 529,460 | | | 11,023,659 |
Proceeds from reinvested dividends - Class A | | 4,432,110 | | | - | | | 591,724 |
Proceeds from reinvested dividends - Class C | | 865,103 | | | - | | | 46,084 |
Proceeds from reinvested dividends - Class I | | 6,792,274 | | | 7,847 | | | 210,787 |
Cost of shares redeemed - Class A | | (19,553,346) | | | - | | | (6,943,441) |
Cost of shares redeemed - Class C | | (3,533,450) | | | - | | | (972,555) |
Cost of shares redeemed - Class I | | (41,645,833) | | | - | | | (10,600,945) |
Net increase (decrease) in net assets resulting from capital share transactions | $ | 83,489,289 | | $ | 637,307 | | $ | (2,193,883) |
| | | | | | | | |
TOTAL INCREASE (DECREASE) IN NET ASSETS | $ | 86,742,709 | | $ | 651,269 | | $ | 5,910,603 |
NET ASSETS, BEGINNING OF PERIOD | | 251,532,922 | | | - | | | 78,299,054 |
NET ASSETS, END OF PERIOD | $ | 338,275,631 | | $ | 651,269 | | $ | 84,209,657 |
| | | | | | | | |
* For the period May 1, 2023 (commencement of operations) through July 31, 2023 |
|
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Changes in Net Assets | For the year ended July 31, 2023
| | High | | MNA | | Short Term |
| | Income | | Resources | | Government |
| | Fund | | Fund | | Fund |
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | | | | | | | | |
Net investment income (loss) | $ | 2,554,901 | | $ | 2,402,137 | | $ | 23,598 |
Net realized gain (loss) from investment transactions | | (446,689) | | | 17,924,236 | | | (2,204,207) |
Net change in unrealized appreciation (depreciation) of investments | | (1,030,827) | | | (12,160,937) | | | 1,696,615 |
Net increase (decrease) in net assets resulting from operations | $ | 1,077,385 | | $ | 8,165,436 | | $ | (483,994) |
| | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS | | | | | | | | |
Distributions - Class A | $ | (1,212,257) | | $ | (1,354,558) | | $ | (1,769) |
Distributions - Class C | | (144,476) | | | (76,981) | | | N/A |
Distributions - Class I | | (1,198,170) | | | (920,220) | | | (64,633) |
Total distributions | $ | (2,554,903) | | $ | (2,351,759) | | $ | (66,402) |
| | | | | | | | |
CAPITAL SHARE TRANSACTIONS | | | | | | | | |
Proceeds from sale of shares - Class A | $ | 650,085 | | $ | 6,500,987 | | $ | - |
Proceeds from sale of shares - Class C | | 424,468 | | | 690,712 | | | N/A |
Proceeds from sale of shares - Class I | | 7,382,988 | | | 12,221,748 | | | 966,985 |
Proceeds from reinvested dividends - Class A | | 1,013,441 | | | 1,300,020 | | | 1,769 |
Proceeds from reinvested dividends - Class C | | 109,718 | | | 73,332 | | | N/A |
Proceeds from reinvested dividends - Class I | | 926,483 | | | 683,988 | | | 57,097 |
Cost of shares redeemed - Class A | | (3,810,405) | | | (18,933,192) | | | (380,183) |
Cost of shares redeemed - Class C | | (702,044) | | | (3,372,337) | | | N/A |
Cost of shares redeemed - Class I | | (9,340,963) | | | (13,341,019) | | | (5,395,913) |
Net increase (decrease) in net assets resulting from capital share transactions | $ | (3,346,229) | | $ | (14,175,761) | | $ | (4,750,245) |
| | | | | | | | |
TOTAL INCREASE (DECREASE) IN NET ASSETS | $ | (4,823,747) | | $ | (8,362,084) | | $ | (5,300,641) |
NET ASSETS, BEGINNING OF PERIOD | | 53,655,708 | | | 147,043,869 | | | 20,312,825 |
NET ASSETS, END OF PERIOD | $ | 48,831,961 | | $ | 138,681,785 | | $ | 15,012,184 |
| | | | | | | | |
| |
|
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Changes in Net Assets | For the year ended July 31, 2022
| | Dividend | | Growth |
| | Harvest | | & Income |
| | Fund | | Fund |
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | | | | | |
Net investment income (loss) | $ | 6,314,760 | | $ | 196,292 |
Net realized gain (loss) from investment transactions | | 9,230,591 | | | 572,871 |
Net change in unrealized appreciation (depreciation) of investments | | 3,445,340 | | | (8,893,507) |
Net increase (decrease) in net assets resulting from operations | $ | 18,990,691 | | $ | (8,124,344) |
| | | | | |
DISTRIBUTIONS TO SHAREHOLDERS | | | | | |
Distributions - Class A | $ | (2,959,093) | | $ | (365,845) |
Distributions - Class C | | (445,278) | | | (33,938) |
Distributions - Class I | | (2,910,818) | | | (278,380) |
Total distributions | $ | (6,315,189) | | $ | (678,163) |
| | | | | |
CAPITAL SHARE TRANSACTIONS | | | | | |
Proceeds from sale of shares - Class A | $ | 20,445,610 | | $ | 7,249,256 |
Proceeds from sale of shares - Class C | | 7,531,037 | | | 2,119,222 |
Proceeds from sale of shares - Class I | | 65,529,132 | | | 19,491,890 |
Proceeds from reinvested dividends - Class A | | 2,630,033 | | | 343,421 |
Proceeds from reinvested dividends - Class C | | 416,699 | | | 33,636 |
Proceeds from reinvested dividends - Class I | | 2,473,410 | | | 227,393 |
Cost of shares redeemed - Class A | | (12,610,847) | | | (5,231,276) |
Cost of shares redeemed - Class C | | (2,422,784) | | | (908,696) |
Cost of shares redeemed - Class I | | (13,364,091) | | | (18,723,586) |
Net increase (decrease) in net assets resulting from capital share transactions | $ | 70,628,199 | | $ | 4,601,260 |
| | | | | |
TOTAL INCREASE (DECREASE) IN NET ASSETS | $ | 83,303,701 | | $ | (4,201,247) |
NET ASSETS, BEGINNING OF PERIOD | | 168,229,221 | | | 82,500,301 |
NET ASSETS, END OF PERIOD | $ | 251,532,922 | | $ | 78,299,054 |
| | | | | |
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Changes in Net Assets | For the year ended July 31, 2022
| | High | | MNA | | Short Term |
| | Income | | Resources | | Government |
| | Fund | | Fund | | Fund |
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | | | | | | | | |
Net investment income (loss) | $ | 2,318,692 | | $ | 1,861,147 | | $ | 295,669 |
Net realized gain (loss) from investment transactions | | 382,980 | | | 25,379,879 | | | (237,623) |
Net change in unrealized appreciation (depreciation) of investments | | (6,504,773) | | | 12,800,565 | | | (1,334,779) |
Net increase (decrease) in net assets resulting from operations | $ | (3,803,101) | | $ | 40,041,591 | | $ | (1,276,733) |
| | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS | | | | | | | | |
Distributions - Class A | $ | (1,069,314) | | $ | (1,174,231) | | $ | (12,672) |
Distributions - Class C | | (120,709) | | | (70,858) | | | N/A |
Distributions - Class I | | (1,128,669) | | | (577,871) | | | (521,526) |
Total distributions | $ | (2,318,692) | | $ | (1,822,960) | | $ | (534,198) |
| | | | | | | | |
CAPITAL SHARE TRANSACTIONS | | | | | | | | |
Proceeds from sale of shares - Class A | $ | 4,439,143 | | $ | 8,548,564 | | $ | 239,532 |
Proceeds from sale of shares - Class C | | 1,285,470 | | | 609,839 | | | N/A |
Proceeds from sale of shares - Class I | | 14,443,443 | | | 20,354,863 | | | 2,119,881 |
Proceeds from reinvested dividends - Class A | | 872,590 | | | 1,122,066 | | | 12,672 |
Proceeds from reinvested dividends - Class C | | 90,057 | | | 66,929 | | | N/A |
Proceeds from reinvested dividends - Class I | | 777,436 | | | 439,535 | | | 453,336 |
Cost of shares redeemed - Class A | | (3,513,329) | | | (21,321,329) | | | (223,930) |
Cost of shares redeemed - Class C | | (1,136,599) | | | (4,076,754) | | | N/A |
Cost of shares redeemed - Class I | | (14,633,740) | | | (6,298,602) | | | (12,776,858) |
Net increase (decrease) in net assets resulting from capital share transactions | $ | 2,624,471 | | $ | (554,889) | | $ | (10,175,367) |
| | | | | | | | |
TOTAL INCREASE (DECREASE) IN NET ASSETS | $ | (3,497,322) | | $ | 37,663,742 | | $ | (11,986,298) |
NET ASSETS, BEGINNING OF PERIOD | | 57,153,030 | | | 109,380,127 | | | 32,299,123 |
NET ASSETS, END OF PERIOD | $ | 53,655,708 | | $ | 147,043,869 | | $ | 20,312,825 |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements. |
NOTES TO FINANCIAL STATEMENTS
NOTE 1: Organization
The Integrity Funds (the “Trust”) was organized as a Delaware statutory trust on October 31, 1997 and commenced operations on October 31, 1997. The Trust is registered under the Investment Company Act of 1940 as an open-end management investment company, consisting of six series (the “Funds”).
Integrity Dividend Harvest Fund (the “Dividend Harvest Fund”), a diversified fund, seeks high current income with long term appreciation as a secondary objective. Integrity Dividend Summit Fund (the “Dividend Summit Fund”), a non-diversified fund commencing operations on May 1, 2023, seeks high current income with long term appreciation as a secondary objective. Integrity Growth & Income Fund (the “Growth & Income Fund”), a diversified fund, seeks to provide long-term growth of capital with dividend income as a secondary objective. Integrity High Income Fund (the “High Income Fund”), a diversified fund, seeks a high level of current income with capital appreciation as a secondary objective. Integrity Mid-North American Resources Fund (the “MNA Resources Fund”), a diversified fund, seeks to provide long-term growth through capital appreciation. Integrity Short Term Government Fund (the “S-T Gov Fund”), a diversified fund, seeks to achieve a high and stable rate of total return, when and as opportunities are available in the context of preserving capital in adverse markets.
Each Fund in the Trust, except for S-T Gov Fund, currently offers Class A, C, and I shares. S-T Gov Fund offers Class A and I shares. The Class A shares of Dividend Harvest Fund, Dividend Summit Fund, Growth & Income Fund, High Income Fund, MNA Resources Fund and S-T Gov Fund are sold with an initial sales charge of 5.00%, 5.00%, 5.00%, 4.25%, 5.00% and 2.00%, respectively, and a distribution fee of up to 0.25% on an annual basis. Class C shares are sold without a sales charge and are subject to a distribution fee of up to 1.00% on an annual basis. Class I shares are sold without a sales charge or distribution fee. The three classes of shares (two classes for S-T Gov Fund) represent interest in each Fund’s same portfolio of investments, have the same rights, and are generally identical in all respects except that each class bears its separate distribution and certain other class expenses and has exclusive voting rights with respect to any matter on which a separate vote of any class is required.
Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts with their vendors and others that provide for general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote.
Each Fund is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946, Financial Services – Investment Companies.
NOTE 2: Summary of Significant Accounting Policies
Investment security valuation—The Funds value their investments at fair value. Securities for which market quotations are available are valued as follows: (a) Listed securities are valued at the closing price obtained from the respective primary exchange on which the security is listed or, if there were no sales on that day, at its last reported current bid price; (b) Unlisted securities are valued at the last current bid price obtained from the National Association of Securities Dealers’ Automated Quotation System. The Funds’ administrative services agent, Integrity Fund Services, LLC (“Integrity Fund Services” or “IFS”) obtains all of these prices from services that collect and disseminate such market prices. Prices provided by an independent pricing service may be determined without exclusive reliance on quoted prices and may take into account appropriate factors such as: institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. In the absence of an ascertainable market value, assets are valued at their fair value as determined by IFS using methods and procedures reviewed and approved by the Board of Trustees. Refer to Note 3 for further disclosures related to the inputs used to value the Funds’ investments. Shares of a registered investment company, including money market funds, that are not traded on an exchange are valued at the investment company’s net asset value per share.
When-issued securities—The Funds may purchase securities on a when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The values of the securities purchased on a when-issued basis are identified as such in each Fund’s Schedule of Investments. With respect to purchase commitments, the Fund identifies securities as segregated in its custodial records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities, if the counterparty does not perform under the contract’s terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Contingent deferred sales charge—Class A shares of $1 million or more may be subject to a 1.00% contingent deferred sales charge (“CDSC”) if redeemed within 24 months of purchase (excluding shares purchased with reinvested dividends and/or distributions). Investments in Class C shares (in any amount) may be subject to a 1.00% CDSC if redeemed within 12 months of purchase.
Federal and state income taxes—Each Fund is a separate taxpayer for federal income tax purposes. Each Fund’s policy is to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of its net investment income and any net realized gain on investments to its shareholders; therefore, no provision for income taxes is required.
As of July 31, 2023, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the year ended July 31, 2023, the Funds did not incur any interest or penalties.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years, which include the current and prior three tax years, are open for examination by taxing authorities. Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Premiums and discounts—Premiums and discounts on debt securities are accreted and amortized into interest income using the effective yield method over the lives of the respective securities.
Cash and cash equivalents—The Funds consider investments in an FDIC insured interest bearing savings account to be cash. The Fund maintains balances, which, at times, may exceed federally insured limits. The Fund maintains these balances with a high quality financial institution.
Security transactions, investment income, expenses and distributions—Income and expenses are recorded on the accrual basis. Investment transactions are accounted for on the trade date. Realized gains and losses are reported on the specific identification basis. Interest income and estimated expenses are accrued daily. Dividend income is recognized on the ex-dividend date. Gains and losses on principal payments of mortgage-backed securities (paydown gains and losses) are included as an adjustment to interest income in the Statements of Operations. Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the applicable countries’ tax rules and regulations. Dividend Harvest Fund, Dividend Summit Fund, and S-T Gov Fund will declare and pay dividends from net investment income monthly. MNA Resources Fund will declare and pay dividends from net investment income quarterly. Growth & Income Fund will declare and pay dividends from net investment income at least annually. The High Income Fund declares dividends from net investment income daily and pays such dividends monthly. Dividends are reinvested in additional shares of the Funds at net asset value or paid in cash. Capital gains, when available, are distributed at least annually. Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with federal income tax regulations and may differ from net investment income and realized gains determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These differences are primarily due to differing treatments for capital loss carryforwards and losses due to wash sales. In addition, other amounts have been reclassified within the composition of net assets to more appropriately conform financial accounting to tax basis treatment.
Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid-in capital. Temporary book and tax basis differences will reverse in a subsequent period. As of July 31, 2023, distributable earnings was increased by $77,968 and paid in capital was decreased by $77,968 for the Dividend Harvest Fund due to a taxable over-distribution.
Use of estimates—The financial statements have been prepared in accordance with GAAP, which 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 increase (decrease) from operations during the reporting period. Actual results could differ from those estimates.
Common expenses—Common expenses of the Trust are allocated among the Funds within the Trust based on relative net assets of each Fund or the nature of the services performed and the relative applicability to each Fund.
Multiple class allocations—The High Income Fund simultaneously uses the settled shares method to allocate income and fund-wide expenses and uses the relative net assets method to allocate gains and losses. Dividend Harvest Fund, Dividend Summit Fund, Growth & Income Fund, MNA Resources Fund and S-T Gov Fund use the relative net assets method to allocate income, fund-wide expenses, gains and losses. Class-specific expenses, distribution fees, and any other items that are specifically attributable to a particular class are charged directly to such class.
Illiquid securities—A security may be considered to be illiquid if it has a limited trading market. Securities are generally considered to be liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the security is valued by the Funds. These securities are valued at fair value as described above. Each Fund intends to hold no more than 15% of its net assets in illiquid securities. Of the illiquid securities listed on the Schedules of Investments, the following securities are considered to be restricted as of July 31, 2023:
High Income Fund | Shares/Principal | Dates Acquired | Cost Basis | Fair Value |
International Oncology Care Inc. | 1,633 | 2/22/18 | 66,476 | $ 23,252 |
NMG Parent LLC | 37 | 9/25/20 | 84 | $ 4,671 |
NOTE 3: Fair Value Measurements
Various inputs are used in determining the value of the Funds’ investments. These inputs are summarized in three broad levels: Level 1 inputs are based on quoted prices in active markets for identical securities. Level 2 inputs are based on significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 inputs are based on significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments). The following is a summary of the inputs used to value the Funds’ investments as of July 31, 2023:
Dividend Harvest Fund | | Level 1 | | Level 2 | | Level 3 | | Total |
Common Stocks | | $ | 335,366,735 | | $ | 0 | | $ | 0 | | $ | 335,366,735 |
Short-Term Investments | | | 2,673,298 | | | 0 | | | 0 | | | 2,673,298 |
Total | | $ | 338,040,033 | | $ | 0 | | $ | 0 | | $ | 338,040,033 |
| | | | | | | | | | | | |
Dividend Summit Fund | | Level 1 | | Level 2 | | Level 3 | | Total |
Common Stocks | | $ | 583,637 | | $ | 0 | | $ | 0 | | $ | 583,637 |
Short-Term Investments | | | 66,482 | | | 0 | | | 0 | | | 66,482 |
Total | | $ | 650,119 | | $ | 0 | | $ | 0 | | $ | 650,119 |
| | | | | | | | | | | | | |
Growth & Income Fund | | Level 1 | | Level 2 | | Level 3 | | Total |
Common Stocks | | $ | 76,197,215 | | $ | 0 | | $ | 0 | | $ | 76,197,215 |
Short-Term Investments | | | 7,997,488 | | | 0 | | | 0 | | | 7,997,488 |
Total | | $ | 84,194,703 | | $ | 0 | | $ | 0 | | $ | 84,194,703 |
| | | | | | | | | | | | |
High Income Fund | | Level 1 | | Level 2 | | Level 3 | | Total |
Corporate Bonds* | | $ | 0 | | $ | 46,058,193 | | $ | 41 | | $ | 46,058,234 |
Common Stock | | | 414,948 | | | 0 | | | 186,215 | | | 601,163 |
Convertible Preferred Stock | | | 0 | | | 0 | | | 137,270 | | | 137,270 |
Warrants | | | 0 | | | 0 | | | 15,533 | | | 15,533 |
Total | | $ | 414,948 | | $ | 46,058,193 | | $ | 339,059 | | $ | 46,812,200 |
| | | | | | | | | | | | |
MNA Resources Fund | | Level 1 | | Level 2 | | Level 3 | | Total |
Common Stocks | | $ | 132,739,570 | | $ | 0 | | $ | 0 | | | 132,739,570 |
Short-Term Investments | | | 6,139,075 | | | 0 | | | 0 | | | 6,139,075 |
Total | | $ | 138,878,645 | | $ | 0 | | $ | 0 | | $ | 138,878,645 |
| | | | | | | | | | | | | |
ST Gov Fund | | Level 1 | | Level 2 | | Level 3 | | Total |
Mortgage Backed Securities | | $ | 0 | | $ | 14,515,749 | | $ | 0 | | $ | 14,515,749 |
U.S Government Notes/Bills | | | 0 | | | 320,079 | | | 0 | | | 320,079 |
Short-Term Investments | | | 106,073 | | | 0 | | | 0 | | | 106,073 |
Total | | $ | 106,073 | | $ | 14,835,828 | | $ | 0 | | $ | 14,941,901 |
| | | | | | | | | | | | |
*Level 3 corporate bonds for High Income Fund includes a corporate bond valued at zero. |
Please refer to the Schedules of Investments for sector classification.
A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments, are presented when a Fund has a significant amount of Level 3 investments at the beginning and/or end of the year in relation to net assets.
The changes of the fair value of investments during the year ended July 31, 2023, for which the Funds have used Level 3 inputs to determine the fair value are as followed:
| | Balance as | Transfers | | Realized | Change in unrealized | Balance as |
High Income Fund | 7/31/2022 | into Lv 3 | Sales | Gain/(Loss) | appreciation/depreciation | 7/31/2023 |
Common Stock | $165,342 | $539* | $0 | $0 | $20,334 | $186,215 |
Corporate Bonds | $41 | $0 | $0 | $0 | $0 | $41 |
Convertible Preferred Stock | $155,480 | $0 | $0 | $0 | ($18,210) | $137,270 |
Warrants | $35,080 | $0 | $0 | $0 | ($19,547) | $15,533 |
Net changes in unrealized appreciation/depreciation attributable to Level 3 investments held at July 31, 2023 are ($37,408), $0, ($18,210) and ($19,547) for common stocks, corporate bonds, convertible preferred stocks and warrants, respectively.
*Transfers into Level 3 resulted from the unavailability to obtain prices from an independent pricing service. One security that transferred into Level 3 had a cost basis of $0. There were no purchases that resulted in a Level 3 security for the year ended July 31, 2023.
| | | | | | Impact to | |
| | Fair Value at | Valuation | Unobservable | | Valuation from | Weighted |
Asset Class | July 31, 2023 | Technique | Inputs | Range | Input | Average |
Common Stock | $162,963 | Market Comparable Transaction | Indictive Value | $0.475 - $275.00 | Increase | $64.49 |
Common Stock | $23,252 | Market Comparable Companies | EBITDA Multiple | 5.04x | Increase | N/A |
Corporate Bonds | $41 | Market Comparable Transaction | Indictive Value | $0.00 - $0.01 | Increase | $0.01 |
Convertible Preferred Stock | $137,270 | Market Comparable Transaction | Indictive Value | $0.8125 - $2,175.00 | Increase | $1,482.13 |
Warrants | $15,533 | Market Comparable Transaction | Indictive Value | $0.01 - $22.50 | Increase | $22.49 |
Unobservable inputs used in the fair value measurement of the Funds’ investments are listed above. Significant changes in any of the unobservable inputs may significantly impact the fair value measurement.
NOTE 4: Investment Transactions
Purchases and sales of investment securities (excluding short-term securities) for the year ended July 31, 2023, were as follows:
| | Purchases | Sales |
Dividend Harvest Fund | $149,490,095 | $66,590,429 |
Dividend Summit Fund | $635,547 | $65,870 |
Growth & Income Fund | $3,036,980 | $11,398,677 |
High Income Fund | $7,361,742 | $10,928,590 |
MNA Resources Fund | $57,835,798 | $77,125,307 |
Short Term Government Fund | $9,912,029 | $12,667,828 |
NOTE 5: Capital Share Transactions
Transactions in capital shares were as follows:
Year Ended 7/31/2023: | | Dividend | | Dividend | | Growth & | | High | | MNA | | S-T |
| | Harvest | | Summit | | Income | | Income | | Resources | | Gov |
Class A | | Fund | | Fund | | Fund | | Fund | | Fund | | Fund |
Shares sold | | 1,272,469 | | 5,000 | | 47,723 | | 91,744 | | 1,271,692 | | 0 |
Shares issued from reinvestments | | 277,570 | | - | | 8,739 | | 143,775 | | 271,802 | | 217 |
Shares redeemed | | (1,220,573) | | - | | (96,887) | | (536,746) | | (3,769,487) | | (46,206) |
Net increase (decrease) | | 329,466 | | 5,000 | | (40,425) | | (301,227) | | (2,225,993) | | (45,989) |
| | | | | | | | | | | | |
Class C | | | | | | | | | | | | |
Shares sold | | 493,935 | | 5,000 | | 13,325 | | 59,494 | | 131,946 | | N/A |
Shares issued from reinvestments | | 54,636 | | - | | 701 | | 15,532 | | 15,490 | | N/A |
Shares redeemed | | (223,047) | | - | | (13,772) | | (99,002) | | (665,300) | | N/A |
Net increase (decrease) | | 325,524 | | 5,000 | | 254 | | (23,976) | | (517,864) | | N/A |
| | | | | | | | | | | | |
Class I | | | | | | | | | | | | |
Shares sold | | 6,694,472 | | 53,230 | | 149,017 | | 1,043,183 | | 2,446,713 | | 118,115 |
Shares issued from reinvestments | | 425,235 | | 802 | | 3,109 | | 131,554 | | 144,134 | | 6,980 |
Shares redeemed | | (2,598,173) | | - | | (148,685) | | (1,322,176) | | (2,675,892) | | (665,156) |
Net increase (decrease) | | 4,521,534 | | 54,032 | | 3,441 | | (147,439) | | (85,045) | | (540,061) |
| | | | | | | | | | | | |
Year Ended 7/31/2022: | | Dividend | | Dividend | | Growth & | | High | | MNA | | S-T |
| | Harvest | | Summit | | Income | | Income | | Resources | | Gov |
Class A | | Fund | | Fund | | Fund | | Fund | | Fund | | Fund |
Shares sold | | 1,251,790 | | - | | 88,839 | | 564,274 | | 1,894,851 | | 28,090 |
Shares issued from reinvestments | | 163,355 | | - | | 3,867 | | 113,606 | | 255,482 | | 1,459 |
Shares redeemed | | (783,964) | | - | | (66,431) | | (452,666) | | (4,798,400) | | (26,678) |
Net increase (decrease) | | 631,181 | | - | | 26,275 | | 225,214 | | (2,648,067) | | 2,871 |
| | | | | | | | | | | | |
Class C | | | | | | | | | | | | |
Shares sold | | 461,695 | | - | | 26,844 | | 163,188 | | 133,950 | | N/A |
Shares issued from reinvestments | | 26,067 | | - | | 389 | | 11,726 | | 15,578 | | N/A |
Shares redeemed | | (151,689) | | - | | (11,899) | | (143,527) | | (930,805) | | N/A |
Net increase (decrease) | | 336,073 | | - | | 15,334 | | 31,387 | | (781,277) | | N/A |
| | | | | | | | | | | | |
Class I | | | | | | | | | | | | |
Shares sold | | 3,984,127 | | - | | 237,761 | | 1,865,616 | | 4,461,895 | | 240,726 |
Shares issued from reinvestments | | 152,901 | | - | | 2,560 | | 101,343 | | 98,535 | | 52,063 |
Shares redeemed | | (828,781) | | - | | (238,193) | | (1,930,825) | | (1,371,287) | | (1,482,870) |
Net increase (decrease) | | 3,308,247 | | - | | 2,128 | | 36,134 | | 3,189,143 | | (1,190,081) |
NOTE 6: Income Tax Information
At July 31, 2023, the unrealized appreciation (depreciation) based on the cost of investments for federal income tax purposes was as follows:
| | Dividend | | Dividend | | Growth & | | High | | MNA | | S-T |
| | Harvest | | Summit | | Income | | Income | | Resources | | Gov |
| | Fund | | Fund | | Fund | | Fund | | Fund | | Fund |
Investments at cost | $ | 300,380,881 | | $ | 628,771 | | $ | 53,378,647 | | $ | 52,653,008 | | $ | 117,092,925 | | $ | 16,832,739 |
Unrealized appreciation | $ | 49,157,610 | | $ | 32,860 | | $ | 31,074,920 | | $ | 514,180 | | $ | 26,625,264 | | $ | 40,081 |
Unrealized depreciation | | (11,498,458) | | | 11,512 | | | (258,865) | | | (6,354,988) | | | (4,839,544) | | | (1,930,919) |
Net unrealized appreciation* | $ | 37,659,152 | | $ | 21,348 | | $ | 30,816,055 | | $ | (5,840,808) | | $ | 21,785,720 | | $ | (1,890,838) |
| | | | | | | | | | | | | | | | | |
*Differences between financial reporting-basis and tax-basis unrealized appreciation/ (depreciation) are due to tax deferral of losses on wash sales. |
The tax character of distributions paid was as follows:
| Dividend | | Dividend | | Growth & | | High | | MNA | | S-T | |
| | Harvest | | Summit* | | Income | | Income | | Resources | | Gov | |
Year ended July 31, 2023: | Fund | | Fund | | Fund | | Fund | | Fund | | Fund | |
Ordinary Income | $ | 9,948,645 | | $ | 9,220 | | $ | 355,797 | | $ | 2,530,290 | | $ | 2,351,759 | | $ | 66,402 | |
Return of Capital | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | |
Capital Gain | | 3,710,190 | | | 0 | | | 572,872 | | | 0 | | | 0 | | | 0 | |
| | $ | 13,658,835 | | $ | 9,220 | | $ | 928,669 | | $ | 2,530,290 | | $ | 2,351,759 | | $ | 66,402 | |
| | | | | | | | | | | | | | | | | | | |
Year ended July 31, 2022: | | | | | | | | | | | | | | | | | | |
Ordinary Income | $ | 6,314,760 | | $ | N/A | | $ | 173,028 | | $ | 2,343,467 | | $ | 1,822,960 | | $ | 534,198 | |
Capital Gain | | 429 | | | N/A | | | 505,135 | | | 0 | | | 0 | | | 0 | |
| | $ | 6,315,189 | | $ | N/A | | $ | 678,163 | | $ | 2,343,467 | | $ | 1,822,960 | | $ | 534,198 | |
| | | | | | | | | | | | | | | | | | |
* For the period May 1, 2023 (commencement of operations) to July 31, 2023. |
As of July 31, 2023, the components of accumulated earnings/(deficit) on a tax basis were as follows:
| | Dividend | | Dividend | | Growth & | | High | | MNA | | S-T |
| | Harvest | | Summit | | Income | | Income | | Resources | | Gov |
| | Fund | | Fund | | Fund | | Fund | | Fund | | Fund |
Undistributed ordinary income | $ | 0 | | $ | 0 | | $ | 264,352 | | $ | 63,637 | | $ | 88,565 | | $ | 17,985 |
Distributions Payable | | 0 | | | 0 | | | 0 | | | (42,940) | | | 0 | | | 0 |
Undistributed capital gain | | 0 | | | 0 | | | 795,914 | | | 0 | | | 0 | | | 0 |
Capital loss carryforward | | (5,630,921) | | | (7,387) | | | 0 | | | (881,365) | | | (190,101,307) | | | (8,325,600) |
Post-October losses deferred ^ | | (1,315,141) | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 |
Unrealized appreciation/ (depreciation)* | | 37,659,152 | | | 21,348 | | | 30,816,055 | | | (5,840,808) | | | 21,785,720 | | | (1,890,838) |
Total accumulated earnings/ (deficit) | $ | 30,713,090 | | $ | 13,961 | | $ | 31,876,321 | | $ | (6,701,476) | | $ | (168,227,022) | | $ | (10,198,453) |
* Differences between financial reporting-basis and tax-basis unrealized appreciation/ (depreciation) are due to tax deferral of losses on wash sales. |
^ Funds can elect to defer incurred capital losses that occur after October 31 within the fiscal year. |
Such losses are deemed to arise on the first business day of the following fiscal year for tax purposes. |
The Funds’ capital loss carryforward amounts as of July 31, 2023 are as follows:
| | Dividend | | Dividend | | Growth & | | High | | MNA | | S-T |
| | Harvest | | Summit | | Income | | Income | | Resources | | Gov |
| | Fund | | Fund | | Fund | | Fund | | Fund | | Fund |
Non-expiring S-T losses | $ | 5,630,921* | | $ | 7,387 | | $ | 0 | | $ | 18,427 | | $ | 105,524,743 | | $ | 4,538,266 |
Non-expiring L-T losses | | 0 | | | 0 | | | 0 | | | 862,938 | | | 84,576,564 | | | 3,787,334 |
Total | $ | 5,630,921 | | $ | 7,387 | | $ | 0 | | $ | 881,365 | | $ | 190,101,307 | | $ | 8,325,600 |
| | | | | | | | | | | | | | | | | |
Capital loss carryforward utilized | $ | 368,337 | | $ | 0 | | $ | 0 | | $ | 0 | | $ | 17,924,236 | | $ | 0 |
| | | | | | | | | | | | | | | | | |
*Dividend Harvest Fund’s ability to use the capital loss carryforward of MD Sass Equity Fund may be limited by loss limitation rules under federal tax law. |
NOTE 7: Investment Advisory Fees and Other Transactions with Affiliates
Viking Fund Management (“VFM”), the Funds’ investment adviser; Integrity Funds Distributor, LLC (“Integrity Funds Distributor” or “IFD”), the Funds’ underwriter and distributor; and Integrity Fund Services, the Funds’ transfer, accounting, and administrative services agent; are subsidiaries of Corridor Investors, LLC (“Corridor Investors” or “Corridor”), the Funds’ sponsor. For Integrity High Income Fund, JPMIM is the sub-adviser. For S-T Gov Fund, M.D. Sass Investor Services, Inc. is the sub-adviser. A Trustee of the Funds is also a Governor of Corridor.
VFM provides investment advisory and management services to the Funds. The Investment Advisory Agreement (the “Advisory Agreement”) provides for fees to be computed at an annual rate of each Fund’s average daily net assets. VFM has also contractually agreed to waive its management fee and to reimburse expenses that are not covered by the management fee, other than extraordinary or non-recurring expenses, taxes, brokerage fees, commissions and acquired fund fees and expenses, so that the net annual operating expenses do not exceed a certain rate. After November 29, 2023 (November 29, 2024 for Dividend Summit Fund), the expense limitations may be terminated or revised for the Funds. Expense limitations as of July 31, 2023, are stated below.
| | | Contractual Waiver % |
| Advisory Fee % | | Class A | | Class C | | Class I |
Dividend Harvest Fund | 0.75% | | 0.95% | | 1.70% | | 0.70% |
Dividend Summit Fund* | 0.75% | | 0.99% | | 1.74% | | 0.74% |
Growth & Income Fund | 1.00% | | 1.24% | | 1.99% | | 0.99% |
High Income Fund | 0.85% | | 0.99% | | 1.74% | | 0.74% |
MNA Resources Fund | 0.50% | | 1.50% | | 2.00% | | 1.00% |
S-T Gov Fund | 0.30% | | 0.80% | | N/A | | 0.55% |
| | | | | | | |
* Fund commenced operations on May 1, 2023. |
VFM and affiliated service providers may also voluntarily waive fees or reimburse expenses not required under the advisory or other contracts from time to time. There were voluntary waivers for the period of May 1, 2023 (commencement of operations) through July 31, 2023, for Dividend Summit Fund, beyond the expense limitation agreement to maintain a 0.00% expense ratio in the initial months of operation for each class of shares. An expense limitation lowers expense ratios and increases returns to investors. Certain Officers of the Funds are also Officers and Governors of VFM.
| | Twelve Months Ended 7/31/2023 | | Payable 7/31/2023 |
| | Advisory | | Waived | | Reimb. | | Advisory | | Waived | | Reimb. |
Dividend Harvest Fund | $ | 2,238,693 | | $ | 1,443,402 | | $ | 0 | | $ | 213,357 | | $ | 143,373 | | $ | 0 |
Dividend Summit Fund* | $ | 1,119 | | $ | 1,119 | | $ | 17,776 | | $ | 406 | | $ | 406 | | $ | 6,066 |
Growth & Income Fund | $ | 727,014 | | $ | 429,172 | | $ | 0 | | $ | 69,768 | | $ | 33,728 | | $ | 0 |
High Income Fund | $ | 417,472 | | $ | 340,855 | | $ | 0 | | $ | 34,888 | | $ | 26,502 | | $ | 0 |
MNA Resources Fund | $ | 705,737 | | $ | 89,643 | | $ | 0 | | $ | 56,381 | | $ | 13,788 | | $ | 0 |
S-T Gov Fund | $ | 49,488 | | $ | 49,488 | | $ | 37,286 | | $ | 3,874 | | $ | 3,874 | | $ | 249 |
| | | | | | | | | | | | | | | | | |
* Fund commenced operations on May 1, 2023. |
VFM is entitled to recoup such amounts waived or reimbursed for a period of up to three years from the date on which VFM waived fees or reimbursed expenses for each Fund. Each Fund will make repayments to the VFM only if such repayment does not cause the annual Fund operating expenses (after the repayment is taken into account) to exceed both (1) the expense limitation in place when such amounts were waived and (2) the Fund’s current expense limitation.
Amounts subject to recoupment and expiration dates are as follows:
| | 7/31/2024 | | 7/31/2025 | | 7/31/2026 |
Dividend Harvest Fund | $ | 833,118 | | $ | 980,581 | | $ | 1,443,402 |
Dividend Summit Fund | $ | N/A | | $ | N/A | | $ | 18,895 |
Growth & Income Fund | $ | 349,463 | | $ | 478,641 | | $ | 429,172 |
High Income Fund | $ | 285,771 | | $ | 367,256 | | $ | 340,855 |
MNA Resources Fund | $ | 110,668 | | $ | 2,135 | | $ | 89,643 |
S-T Gov Fund | $ | 124,077 | | $ | 102,559 | | $ | 86,774 |
IFD serves as the principal underwriter and distributor for the Funds and receives sales charges deducted from Fund share sales proceeds and CDSC from applicable Fund share redemptions. Also, the Funds have adopted a distribution plan for each class of shares as allowed by Rule 12b-1 of the 1940 Act. Distribution plans permit the Funds to reimburse its principal underwriter for costs related to selling shares of the Funds and for various other services. These costs, which consist primarily of commissions and service fees to broker-dealers who sell shares of the Funds, are paid by shareholders through expenses called “Distribution Plan expenses.” The Funds currently pay an annual distribution fee and/or service fee of up to 0.25% (0.50% for MNA Resources Fund) for Class A and 1.00% for Class C of the average daily net assets. Class I shares do not have a 12b-1 plan in place. Certain Officers of the Funds are also Officers and Governors of IFD.
| | Twelve Months Ended 7/31/2023 | | Payable 7/31/2023 |
| | Sales Charges | | CDSC | | Distribution Fees | | Distribution Fees |
Dividend Harvest Fund - A | $ | 525,282 | | $ | 0 | | $ | 272,701 | | $ | 23,407 |
Dividend Harvest Fund - C | $ | 0 | | $ | 2,723 | | $ | 247,164 | | $ | 23,415 |
Dividend Summit Fund – A* | $ | 0 | | $ | 0 | | $ | 30 | | $ | 11 |
Dividend Summit Fund – C* | $ | 0 | | $ | 0 | | $ | 121 | | $ | 43 |
Growth & Income Fund - A | $ | 39,245 | | $ | 0 | | $ | 118,235 | | $ | 10,853 |
Growth & Income Fund - C | $ | 0 | | $ | 454 | | $ | 56,700 | | $ | 5,322 |
High Income Fund - A | $ | 7,261 | | $ | 0 | | $ | 58,977 | | $ | 4,866 |
High Income Fund - C | $ | 0 | | $ | 0 | | $ | 32,916 | | $ | 2,788 |
MNA Resources Fund - A | $ | 119,059 | | $ | 0 | | $ | 445,739 | | $ | 35,549 |
MNA Resources Fund - C | $ | 0 | | $ | 147 | | $ | 75,484 | | $ | 5,374 |
S-T Gov Fund - A | $ | 0 | | $ | 0 | | $ | 1,544 | | $ | 101 |
| | | | | | | | | | | |
* Fund commenced operations on May 1, 2023. |
IFS acts as the transfer agent for High Income Fund and S-T Gov Fund at a monthly variable fee equal to 0.12% on the first $0 to $200 million and at a lower rate in excess of $200 million of the Funds’ average daily net assets on an annual basis and an additional fee of $500 per month for each additional share class plus reimbursement of out-of-pocket expenses and sub-transfer agent out-of-pocket expenses. IFS acts as the transfer agent for Dividend Harvest Fund, Dividend Summit Fund, Growth & Income Fund, and MNA Resources Fund at a monthly variable fee equal to 0.18% on the first $0 to $200 million, 0.15% on the next $200 to $700 million and at a lower rate in excess of $700 million of the Funds’ average daily net assets on an annual basis and an additional fee of $500 per month for each additional share class plus reimbursement of out-of-pocket expenses and sub-transfer agent out-of-pocket expenses. Sub-transfer agent out-of-pocket expenses are included in the transfer agent fees below and in the transfer agent out-of-pocket balance on the Statements of Operations.
IFS also acts as the Funds’ administrative services agent for a monthly fee equal to the sum of a fixed fee of $2,000 and a variable fee equal to 0.14% on the first $0 to $200 million, 0.13% on the next $200 to $700 million and at a lower rate in excess of $700 million of the Funds’ average daily net assets on an annual basis and an additional fee of $1,000 per month for each additional share class plus reimbursement of out-of-pocket expenses. Certain Officers of the Funds are also Officers and Governors of IFS.
| | Twelve Months Ended 7/31/2023 | | Payable 7/31/2023 |
| | Transfer | | Admin. | | Transfer | | Admin. |
| | Agency Fees | | Service Fees | | Agency Fees | | Service Fees |
Dividend Harvest Fund | $ | 567,263 | | $ | 456,039 | | $ | 51,462 | | $ | 42,757 |
Dividend Summit Fund* | $ | 3,396 | | $ | 12,176 | | $ | 1,242 | | $ | 4,152 |
Growth & Income Fund | $ | 165,348 | | $ | 149,780 | | $ | 21,917 | | $ | 13,843 |
High Income Fund | $ | 87,069 | | $ | 116,759 | | $ | 14,700 | | $ | 9,823 |
MNA Resources Fund | $ | 377,362 | | $ | 245,605 | | $ | 58,863 | | $ | 19,862 |
S-T Gov Fund | $ | 31,297 | | $ | 59,022 | | $ | 7,143 | | $ | 4,856 |
| | | | | | | | | | | |
* Fund commenced operations on May 1, 2023. |
NOTE 8: Principal Risks
The High Income Fund may be invested in lower-rated debt securities that have a higher risk of default or loss of value since these securities may be sensitive to economic changes, political changes or adverse developments specific to the issuer.
The MNA Resources Fund invests significantly in relatively few sectors, primarily the energy sector, and has more exposure to the price movement of this sector than funds that diversify their investments among many sectors.
NOTE 9: Beneficial Ownership
The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the fund, under Section 2(a)(9) of the 1940 Act. At July 31, 2023, the following shareholder held over 25% of S-T Gov Class I’s shares outstanding:
Marc Brownstein 35.52%
NOTE 10: Subsequent Events
The Funds are required to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the Statements of Assets and Liabilities. For non-recognized subsequent events that must be disclosed to keep the financial statements from being misleading, the Funds are required to disclose the nature of the event as well as an estimate of its financial effect, or a statement that such an estimate cannot be made. Management has evaluated the impact of all subsequent events on the Funds through the issuance date of these financial statements and has noted no such events requiring disclosure.
INTEGRITY DIVIDEND HARVEST FUND CLASS A
Selected per share data and ratios for the periods indicated
| | Year | | Year | | Year | | Year | | Year |
| | Ended | | Ended | | Ended | | Ended | | Ended |
| | 7/31/23 | | 7/31/22 | | 7/31/21 | | 7/31/20 | | 7/31/19 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 16.33 | | $ | 15.12 | | $ | 12.71 | | $ | 14.06 | | $ | 14.24 |
| | | | | | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | |
Net investment income (loss) (1)) | $ | 0.52 | | $ | 0.50 | | $ | 0.47 | | $ | 0.48 | | $ | 0.44 |
Net realized and unrealized gain (loss) on investments (2) | | 0.31 | | | 1.21 | | | 2.41 | | | (0.74) | | | 0.66 |
Total from investment operations | $ | 0.83 | | $ | 1.71 | | $ | 2.88 | | $ | (0.26) | | $ | 1.10 |
| | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends from net investment income | $ | (0.51) | | $ | (0.50) | | $ | (0.47) | | $ | (0.49) | | $ | (0.43) |
Distributions from return of capital | | 0.00 | | | 0.00 | | | 0.00 | | | (0.01) | | | 0.00 |
Distributions from net realized gains | | (0.21) | | | 0.00 | | | 0.00 | | | (0.59) | | | (0.85) |
Total distributions | $ | (0.72) | | $ | (0.50) | | $ | (0.47) | | $ | (1.09) | | $ | (1.28) |
| | | | | | | | | | | | | | |
NET ASSET VALUE, END OF PERIOD | $ | 16.44 | | $ | 16.33 | | $ | 15.12 | | $ | 12.71 | | $ | 14.06 |
| | | | | | | | | | | | | | |
Total Return (excludes any applicable sales charge) | 5.31% | | 11.41% | | 23.09% | | (2.39%) | | 8.75% |
| | | | | | | | | | | | | | |
RATIOS/SUPPLEMENTAL DATA | | | | | | | | | | | | | | |
Net assets, end of period (in thousands) | $111,909 | | $105,799 | | $88,405 | | $80,762 | | $91,602 |
Ratio of expenses to average net assets after waivers (3) | 0.95% | | 0.95% | | 0.95% | | 0.95% | | 0.95% |
Ratio of expenses to average net assets before waivers | 1.43% | | 1.44% | | 1.48% | | 1.50% | | 1.51% |
Ratio of net investment income to average net assets (3) | 3.23% | | 3.13% | | 3.39% | | 3.58% | | 3.17% |
Portfolio turnover rate | 22.79% | | 14.84% | | 42.14% | | 51.62% | | 47.71% |
(1) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(2) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(3) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY DIVIDEND HARVEST FUND CLASS C
Selected per share data and ratios for the periods indicated
| | Year | | Year | | Year | | Year | | Year |
| | Ended | | Ended | | Ended | | Ended | | Ended |
| | 7/31/23 | | 7/31/22 | | 7/31/21 | | 7/31/20 | | 7/31/19 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 16.19 | | $ | 15.00 | | $ | 12.61 | | $ | 13.96 | | $ | 14.15 |
| | | | | | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | |
Net investment income (loss) (1) | $ | 0.39 | | $ | 0.38 | | $ | 0.37 | | $ | 0.38 | | $ | 0.34 |
Net realized and unrealized gain (loss) on investments (2) | | 0.31 | | | 1.19 | | | 2.39 | | | (0.74) | | | 0.65 |
Total from investment operations | $ | 0.70 | | $ | 1.57 | | $ | 2.76 | | $ | (0.36) | | $ | 0.99 |
| | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends from net investment income | $ | (0.39) | | $ | (0.38) | | $ | (0.37) | | $ | (0.39) | | $ | (0.33) |
Distributions from return of capital | | 0.00 | | | 0.00 | | | 0.00 | | | (0.01) | | | 0.00 |
Distributions from net realized gains | | (0.21) | | | 0.00 | | | 0.00 | | | (0.59) | | | (0.85) |
Total distributions | $ | (0.60) | | $ | (0.38) | | $ | (0.37) | | $ | (0.99) | | $ | (1.18) |
| | | | | | | | | | | | | | |
NET ASSET VALUE, END OF PERIOD | $ | 16.29 | | $ | 16.19 | | $ | 15.00 | | $ | 12.61 | | $ | 13.96 |
| | | | | | | | | | | | | | |
Total Return (excludes any applicable sales charge) | 4.50% | | 10.54% | | 22.19% | | (3.13%) | | 7.92% |
| | | | | | | | | | | | | | |
RATIOS/SUPPLEMENTAL DATA | | | | | | | | | | | | | | |
Net assets, end of period (in thousands) | $27,906 | | $22,463 | | $15,762 | | $14,194 | | $13,637 |
Ratio of expenses to average net assets after waivers (3) | 1.70% | | 1.70% | | 1.70% | | 1.70% | | 1.70% |
Ratio of expenses to average net assets before waivers | 2.18% | | 2.19% | | 2.23% | | 2.25% | | 2.26% |
Ratio of net investment income to average net assets (3) | 2.48% | | 2.38% | | 2.64% | | 2.83% | | 2.42% |
Portfolio turnover rate | 22.79% | | 14.84% | | 42.14% | | 51.62% | | 47.71% |
(1) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(2) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(3) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY DIVIDEND HARVEST FUND CLASS I
Selected per share data and ratios for the periods indicated
| | Year | | Year | | Year | | Year | | Year |
| | Ended | | Ended | | Ended | | Ended | | Ended |
| | 7/31/23 | | 7/31/22 | | 7/31/21 | | 7/31/20 | | 7/31/19 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 16.34 | | $ | 15.13 | | $ | 12.72 | | $ | 14.07 | | $ | 14.25 |
| | | | | | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | |
Net investment income (loss) (1) | $ | 0.56 | | $ | 0.55 | | $ | 0.51 | | $ | 0.51 | | $ | 0.48 |
Net realized and unrealized gain (loss) on investments (2) | | 0.31 | | | 1.20 | | | 2.41 | | | (0.74) | | | 0.66 |
Total from investment operations | $ | 0.87 | | $ | 1.75 | | $ | 2.92 | | $ | (0.23) | | $ | 1.14 |
| | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends from net investment income | $ | (0.55) | | $ | (0.54) | | $ | (0.51) | | $ | (0.52) | | $ | (0.47) |
Distributions from return of capital | | 0.00 | | | 0.00 | | | 0.00 | | | (0.01) | | | 0.00 |
Distributions from net realized gains | | (0.21) | | | 0.00 | | | 0.00 | | | (0.59) | | | (0.85) |
Total distributions | $ | (0.76) | | $ | (0.54) | | $ | (0.51) | | $ | (1.12) | | $ | (1.32) |
| | | | | | | | | | | | | | |
NET ASSET VALUE, END OF PERIOD | $ | 16.45 | | $ | 16.34 | | $ | 15.13 | | $ | 12.72 | | $ | 14.07 |
| | | | | | | | | | | | | | |
Total Return (excludes any applicable sales charge) | 5.58% | | 11.68% | | 23.38% | | (2.14%) | | 9.01% |
| | | | | | | | | | | | | | |
RATIOS/SUPPLEMENTAL DATA | | | | | | | | | | | | | | |
Net assets, end of period (in thousands) | $198,461 | | $123,271 | | $64,062 | | $52,298 | | $30,794 |
Ratio of expenses to average net assets after waivers (3) | 0.70% | | 0.70% | | 0.70% | | 0.70% | | 0.70% |
Ratio of expenses to average net assets before waivers | 1.18% | | 1.19% | | 1.23% | | 1.25% | | 1.26% |
Ratio of net investment income to average net assets (3) | 3.48% | | 3.38% | | 3.64% | | 3.83% | | 3.42% |
Portfolio turnover rate | 22.79% | | 14.84% | | 42.14% | | 51.62% | | 47.71% |
(1) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(2) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(3) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY DIVIDEND SUMMIT FUND CLASS A
Selected per share data and ratios for the periods indicated
| | Period |
| | From |
| | 5/1/23* to |
| | 7/31/23 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.00 |
| | |
Income (loss) from investment operations: | | |
Net investment income (loss) (1)) | $ | 0.15 |
Net realized and unrealized gain (loss) on investments (2) | | 0.17 |
Total from investment operations | $ | 0.32 |
| | |
Less Distributions: | | |
Dividends from net investment income | $ | (0.15) |
Total distributions | $ | (0.15) |
| | |
NET ASSET VALUE, END OF PERIOD | $ | 10.17 |
| | |
Total Return (excludes any applicable sales charge) # | 3.25% |
| | |
RATIOS/SUPPLEMENTAL DATA | | |
Net assets, end of period (in thousands) | $51 |
Ratio of expenses to average net assets after waivers ^ (3)(4) | 0.00% |
Ratio of expenses to average net assets before waivers ^ | 12.71% |
Ratio of net investment income to average net assets ^ (3)(4) | 5.95% |
Portfolio turnover rate # | 11.50% |
(1) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(2) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(3) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
(4) | The voluntary waiver, based on average net assets, amounted to 0.99% for the period May 1, 2023 (commencement of operations) through July 31, 2023. |
* | Commencement of operations. |
# | Not annualized for periods less than one year. |
^ | Annualized for periods less than one year. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY DIVIDEND SUMMIT FUND CLASS C
Selected per share data and ratios for the periods indicated
| | Period |
| | From |
| | 5/1/23* to |
| | 7/31/23 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.00 |
| | |
Income (loss) from investment operations: | | |
Net investment income (loss) (1) | $ | 0.13 |
Net realized and unrealized gain (loss) on investments (2) | | 0.19 |
Total from investment operations | $ | 0.32 |
| | |
Less Distributions: | | |
Dividends from net investment income | $ | (0.13) |
Total distributions | $ | (0.13) |
| | |
NET ASSET VALUE, END OF PERIOD | $ | 10.19 |
| | |
Total Return (excludes any applicable sales charge) # | 3.25% |
| | |
RATIOS/SUPPLEMENTAL DATA | | |
Net assets, end of period (in thousands) | $51 |
Ratio of expenses to average net assets after waivers ^ (3)(4) | 0.00% |
Ratio of expenses to average net assets before waivers ^ | 13.45% |
Ratio of net investment income to average net assets ^ (3)(4) | 5.21% |
Portfolio turnover rate # | 11.50% |
(1) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(2) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(3) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
(4) | The voluntary waiver, based on average net assets, amounted to 1.74% for the period May 1, 2023 (commencement of operations) through July 31, 2023. |
* | Commencement of operations. |
# | Not annualized for periods less than one year. |
^ | Annualized for periods less than one year. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY DIVIDEND SUMMIT FUND CLASS I
Selected per share data and ratios for the periods indicated
| | Period |
| | From |
| | 5/1/23* to |
| | 7/31/23 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.00 |
| | |
Income (loss) from investment operations: | | |
Net investment income (loss) (1)) | $ | 0.15 |
Net realized and unrealized gain (loss) on investments (2) | | 0.17 |
Total from investment operations | $ | 0.32 |
| | |
Less Distributions: | | |
Dividends from net investment income | $ | (0.15) |
Total distributions | $ | (0.15) |
| | |
NET ASSET VALUE, END OF PERIOD | $ | 10.17 |
| | |
Total Return (excludes any applicable sales charge) # | 3.31% |
| | |
RATIOS/SUPPLEMENTAL DATA | | |
Net assets, end of period (in thousands) | $549 |
Ratio of expenses to average net assets after waivers ^ (3)(4) | 0.00% |
Ratio of expenses to average net assets before waivers ^ | 12.42% |
Ratio of net investment income to average net assets ^ (3)(4) | 6.20% |
Portfolio turnover rate # | 11.50% |
(1) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(2) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(3) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
(4) | The voluntary waiver, based on average net assets, amounted to 0.74% for the period May 1, 2023 (commencement of operations) through July 31, 2023. |
* | Commencement of operations. |
# | Not annualized for periods less than one year. |
^ | Annualized for periods less than one year. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY GROWTH & INCOME FUND CLASS A
Selected per share data and ratios for the periods indicated
| | Year | | Year | | Year | | Year | | Year |
| | Ended | | Ended | | Ended | | Ended | | Ended |
| | 7/31/23 | | 7/31/22 | | 7/31/21 | | 7/31/20 | | 7/31/19 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 73.72 | | $ | 80.95 | | $ | 60.74 | | $ | 59.55 | | $ | 56.62 |
| | | | | | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | |
Net investment income (loss) (1) | | 0.44 | | | 0.16 | | | 0.29 | | $ | 0.57 | | $ | 0.62 |
Net realized and unrealized gain (loss) on investments (2) | | 8.92 | | | (6.83) | | | 20.35 | | | 6.17 | | | 5.57 |
Total from investment operations | $ | 9.36 | | $ | (6.67) | | $ | 20.64 | | $ | 6.74 | | $ | 6.19 |
| | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends from net investment income | $ | (0.38) | | $ | (0.08) | | $ | (0.41) | | $ | (0.83) | | $ | (0.32) |
Distributions from net realized gains | | (0.59) | | | (0.48) | | | (0.02) | | | (4.72) | | | (2.94) |
Total distributions | $ | (0.97) | | $ | (0.56) | | $ | (0.43) | | $ | (5.55) | | $ | (3.26) |
| | | | | | | | | | | | | | |
NET ASSET VALUE, END OF PERIOD | $ | 82.11 | | $ | 73.72 | | $ | 80.95 | | $ | 60.74 | | $ | 59.55 |
| | | | | | | | | | | | | | |
Total Return (excludes any applicable sales charge) | | 12.98% | | | (8.37%) | | 34.11% | | 11.42% | | 12.21% |
| | | | | | | | | | | | | | |
RATIOS/SUPPLEMENTAL DATA | | | | | | | | | | | | | | |
Net assets, end of period (in thousands) | $52,272 | | $49,909 | | $52,676 | | $39,422 | | $37,464 |
Ratio of expenses to average net assets after waivers (3) | 1.24% | | 1.24% | | 1.24% | | 1.24% | | 1.25% |
Ratio of expenses to average net assets before waivers | 1.83% | | 1.80% | | 1.80% | | 1.87% | | 1.93% |
Ratio of net investment income to average net assets (3) | 0.60% | | 0.20% | | 0.41% | | 0.98% | | 1.11% |
Portfolio turnover rate | 4.29% | | 3.78% | | 11.22% | | 11.44% | | 14.11% |
(1) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(2) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(3) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY GROWTH & INCOME FUND CLASS C
Selected per share data and ratios for the periods indicated
| | Year | | Year | | Year | | Year | | Year |
| | Ended | | Ended | | Ended | | Ended | | Ended |
| | 7/31/23 | | 7/31/22 | | 7/31/21 | | 7/31/20 | | 7/31/19 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 71.41 | | $ | 78.94 | | $ | 59.67 | | $ | 58.95 | | $ | 56.45 |
| | | | | | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | |
Net investment income (loss) (1) | $ | (0.11) | | $ | (0.42) | | $ | 0.00 | | $ | 0.70 | | $ | 0.75 |
Net realized and unrealized gain (loss) on investments (2) | | 8.65 | | | (6.63) | | | 19.86 | | | 5.73 | | | 5.14 |
Total from investment operations | $ | 8.54 | | $ | (7.05) | | $ | 19.86 | | $ | 6.43 | | $ | 5.89 |
| | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends from net investment income | $ | (0.00) | | $ | 0.00 | | $ | (0.57) | | $ | (0.99) | | $ | (0.45) |
Distributions from net realized gains | | (0.59) | | | (0.48) | | | (0.02) | | | (4.72) | | | (2.94) |
Total distributions | $ | (0.59) | | $ | (0.48) | | $ | (0.59) | | $ | (5.71) | | $ | (3.39) |
| | | | | | | | | | | | | | |
NET ASSET VALUE, END OF PERIOD | $ | 79.36 | | $ | 71.41 | | $ | 78.94 | | $ | 59.67 | | $ | 58.95 |
| | | | | | | | | | | | | | |
Total Return (excludes any applicable sales charge) | 12.14% | | -9.05% | | 33.44% | | 10.97% | | 11.74% |
| | | | | | | | | | | | | | |
RATIOS/SUPPLEMENTAL DATA | | | | | | | | | | | | | | |
Net assets, end of period (in thousands) | $6,304 | | $5,655 | | $5,041 | | $1,092 | | $248 |
Ratio of expenses to average net assets after waivers (3) | 1.99% | | 1.99% | | 1.85% | | 1.62% | | 1.68% |
Ratio of expenses to average net assets before waivers | 2.58% | | 2.55% | | 2.20% | | 1.62% | | 1.68% |
Ratio of net investment income (loss) to average net assets (3) | (0.15%) | | (0.55%) | | 0.00% | | 1.23% | | 1.36% |
Portfolio turnover rate | 4.29% | | 3.78% | | 11.22% | | 11.44% | | 14.11% |
(1) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(2) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(3) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY GROWTH & INCOME FUND CLASS I
Selected per share data and ratios for the periods indicated
| | Year | | Year | | Year | | Year | | Year |
| | Ended | | Ended | | Ended | | Ended | | Ended |
| | 7/31/23 | | 7/31/22 | | 7/31/21 | | 7/31/20 | | 7/31/19 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 73.85 | | $ | 81.06 | | $ | 60.80 | | $ | 59.61 | | $ | 56.68 |
| | | | | | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | |
Net investment income (loss) (1) | $ | 0.62 | | $ | 0.35 | | $ | 0.48 | | $ | 0.71 | | $ | 0.76 |
Net realized and unrealized gain (loss) on investments (2) | | 8.94 | | | (6.81) | | | 20.37 | | | 6.19 | | | 5.58 |
Total from investment operations | $ | 9.56 | | $ | (6.46) | | $ | 20.85 | | $ | 6.90 | | $ | 6.34 |
| | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends from net investment income | $ | (0.48) | | $ | (0.27) | | $ | (0.57) | | $ | (0.99) | | $ | (0.47) |
Distributions from net realized gains | | (0.59) | | | (0.48) | | | (0.02) | | | (4.72) | | | (2.94) |
Total distributions | $ | (1.07) | | $ | (0.75) | | $ | (0.59) | | $ | (5.71) | | $ | (3.41) |
| | | | | | | | | | | | | | |
NET ASSET VALUE, END OF PERIOD | $ | 82.34 | | $ | 73.85 | | $ | 81.06 | | $ | 60.80 | | $ | 59.61 |
| | | | | | | | | | | | | | |
Total Return (excludes any applicable sales charge) | 13.25% | | (8.12%) | | 34.45% | | 11.68% | | 12.51% |
| | | | | | | | | | | | | | |
RATIOS/SUPPLEMENTAL DATA | | | | | | | | | | | | | | |
Net assets, end of period (in thousands) | $25,634 | | $22,735 | | $24,784 | | $9,367 | | $1,544 |
Ratio of expenses to average net assets after waivers (3) | 0.99% | | 0.99% | | 0.99% | | 0.99% | | 1.00% |
Ratio of expenses to average net assets before waivers | 1.58% | | 1.54% | | 1.55% | | 1.62% | | 1.68% |
Ratio of net investment income to average net assets (3) | 0.85% | | 0.45% | | 0.66% | | 1.23% | | 1.36% |
Portfolio turnover rate | 4.29% | | 3.78% | | 11.22% | | 11.44% | | 14.11% |
(1) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(2) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(3) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY HIGH INCOME FUND CLASS A
Selected per share data and ratios for the periods indicated
| | Year | | Year | | Year | | Year | | Year |
| | Ended | | Ended | | Ended | | Ended | | Ended |
| | 7/31/23 | | 7/31/22 | | 7/31/21 | | 7/31/20 | | 7/31/19 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 7.33 | | $ | 8.13 | | $ | 7.65 | | $ | 7.77 | | $ | 7.66 |
| | | | | | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | |
Net investment income (loss) (1) | $ | 0.36 | | $ | 0.31 | | $ | 0.32 | | $ | 0.37 | | $ | 0.39 |
Net realized and unrealized gain (loss) on investments (2) | | (0.20) | | | (0.80) | | | 0.48 | | | (0.12) | | | 0.11 |
Total from investment operations | $ | 0.16 | | $ | (0.49) | | $ | 0.80 | | $ | 0.25 | | $ | 0.50 |
| | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends from net investment income | $ | (0.36) | | $ | (0.31) | | $ | (0.32) | | $ | (0.37) | | $ | (0.39) |
Total distributions | $ | (0.36) | | $ | (0.31) | | $ | (0.32) | | $ | (0.37) | | $ | (0.39) |
| | | | | | | | | | | | | | |
NET ASSET VALUE, END OF PERIOD | $ | 7.13 | | $ | 7.33 | | $ | 8.13 | | $ | 7.65 | | $ | 7.77 |
| | | | | | | | | | | | | | |
Total Return (excludes any applicable sales charge) | 2.41% | | (6.14%) | | 10.62% | | 3.37% | | 6.74% |
| | | | | | | | | | | | | | |
RATIOS/SUPPLEMENTAL DATA | | | | | | | | | | | | | | |
Net assets, end of period (in thousands) | $22,891 | | $25,736 | | $26,725 | | $25,309 | | $24,704 |
Ratio of expenses to average net assets after waivers (3) | 0.99% | | 0.99% | | 0.99% | | 0.95% | | 0.89% |
Ratio of expenses to average net assets before waivers | 1.68% | | 1.63% | | 1.63% | | 1.69% | | 1.74% |
Ratio of net investment income to average net assets (3) | 5.14% | | 3.99% | | 3.99% | | 4.86% | | 5.10% |
Portfolio turnover rate | 15.41% | | 21.04% | | 35.74% | | 35.02% | | 28.24% |
(1) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(2) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(3) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY HIGH INCOME FUND CLASS C
Selected per share data and ratios for the periods indicated
| | Year | | Year | | Year | | Year | | Year |
| | Ended | | Ended | | Ended | | Ended | | Ended |
| | 7/31/23 | | 7/31/22 | | 7/31/21 | | 7/31/20 | | 7/31/19 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 7.35 | | $ | 8.15 | | $ | 7.67 | | $ | 7.78 | | $ | 7.68 |
| | | | | | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | |
Net investment income (loss) (1) | $ | 0.31 | | $ | 0.25 | | $ | 0.26 | | $ | 0.31 | | $ | 0.33 |
Net realized and unrealized gain (loss) on investments (2) | | (0.20) | | | (0.80) | | | 0.48 | | | (0.11) | | | 0.10 |
Total from investment operations | $ | 0.11 | | $ | (0.55) | | $ | 0.74 | | $ | 0.20 | | $ | 0.43 |
| | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends from net investment income | $ | (0.31) | | $ | (0.25) | | $ | (0.26) | | $ | (0.31) | | $ | (0.33) |
Total distributions | $ | (0.31) | | $ | (0.25) | | $ | (0.26) | | $ | (0.31) | | $ | (0.33) |
| | | | | | | | | | | | | | |
NET ASSET VALUE, END OF PERIOD | $ | 7.15 | | $ | 7.35 | | $ | 8.15 | | $ | 7.67 | | $ | 7.78 |
| | | | | | | | | | | | | | |
Total Return (excludes any applicable sales charge) | 1.65% | | (6.82%) | | 9.78% | | 2.74% | | 5.81% |
| | | | | | | | | | | | | | |
RATIOS/SUPPLEMENTAL DATA | | | | | | | | | | | | | | |
Net assets, end of period (in thousands) | $3,364 | | $3,364 | | $3,776 | | $2,753 | | $4,329 |
Ratio of expenses to average net assets after waivers (3) | 1.74% | | 1.74% | | 1.74% | | 1.70% | | 1.64% |
Ratio of expenses to average net assets before waivers | 2.43% | | 2.38% | | 2.38% | | 2.44% | | 2.49% |
Ratio of net investment income to average net assets (3) | 4.39% | | 3.24% | | 3.24% | | 4.11% | | 4.35% |
Portfolio turnover rate | 15.41% | | 21.04% | | 35.74% | | 35.02% | | 28.24% |
(1) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(2) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(3) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY HIGH INCOME FUND CLASS I
Selected per share data and ratios for the periods indicated
| | Year | | Year | | Year | | Year | | Year |
| | Ended | | Ended | | Ended | | Ended | | Ended |
| | 7/31/23 | | 7/31/22 | | 7/31/21 | | 7/31/20 | | 7/31/19 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 7.32 | | $ | 8.13 | | $ | 7.64 | | $ | 7.76 | | $ | 7.66 |
| | | | | | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | |
Net investment income (loss) (1) | $ | 0.38 | | $ | 0.33 | | $ | 0.34 | | $ | 0.39 | | $ | 0.41 |
Net realized and unrealized gain (loss) on investments (2) | | (0.20) | | | (0.81) | | | 0.49 | | | (0.12) | | | 0.10 |
Total from investment operations | $ | 0.18 | | $ | (0.48) | | $ | 0.83 | | $ | 0.27 | | $ | 0.51 |
| | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends from net investment income | $ | (0.38) | | $ | (0.33) | | $ | (0.34) | | $ | (0.39) | | $ | (0.41) |
Total distributions | $ | (0.38) | | $ | (0.33) | | $ | (0.34) | | $ | (0.39) | | $ | (0.41) |
| | | | | | | | | | | | | | |
NET ASSET VALUE, END OF PERIOD | $ | 7.12 | | $ | 7.32 | | $ | 8.13 | | $ | 7.64 | | $ | 7.76 |
| | | | | | | | | | | | | | |
Total Return (excludes any applicable sales charge) | 2.66% | | (6.04%) | | 11.04% | | 3.63% | | 6.87% |
| | | | | | | | | | | | | | |
RATIOS/SUPPLEMENTAL DATA | | | | | | | | | | | | | | |
Net assets, end of period (in thousands) | $22,577 | | $24,286 | | $26,652 | | $9,163 | | $9,023 |
Ratio of expenses to average net assets after waivers (3) | 0.74% | | 0.74% | | 0.74% | | 0.70% | | 0.64% |
Ratio of expenses to average net assets before waivers | 1.43% | | 1.38% | | 1.37% | | 1.44% | | 1.49% |
Ratio of net investment income to average net assets (3) | 5.39% | | 4.24% | | 4.24% | | 5.11% | | 5.35% |
Portfolio turnover rate | 15.41% | | 21.04% | | 35.74% | | 35.02% | | 28.24% |
(1) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(2) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(3) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY MID-NORTH AMERICAN RESOURCES FUND CLASS A
Selected per share data and ratios for the periods indicated
| | Year | | Year | | Year | | Year | | Year |
| | Ended | | Ended | | Ended | | Ended | | Ended |
| | 7/31/23 | | 7/31/22 | | 7/31/21 | | 7/31/20 | | 7/31/19 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 5.07 | | $ | 3.74 | | $ | 2.59 | | $ | 4.28 | | $ | 5.60 |
| | | | | | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | |
Net investment income (loss) (1) | $ | 0.08 | | $ | 0.06 | | $ | 0.04 | | $ | 0.07 | | $ | 0.04 |
Net realized and unrealized gain (loss) on investments (2) | | 0.23 | | | 1.33 | | | 1.15 | | | (1.66) | | | (1.34) |
Total from investment operations | $ | 0.31 | | $ | 1.39 | | $ | 1.19 | | $ | (1.59) | | $ | (1.30) |
| | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends from net investment income | $ | (0.08) | | $ | (0.06) | | $ | (0.04) | | $ | (0.10) | | $ | (0.02) |
Distributions from return of capital | | 0.00 | | | 0.00 | | | 0.00 | ** | | 0.00 | | | 0.00 |
Total distributions | $ | (0.08) | | $ | (0.06) | | $ | (0.04) | | $ | (0.10) | | $ | (0.02) |
| | | | | | | | | | | | | | |
NET ASSET VALUE, END OF PERIOD | $ | 5.30 | | $ | 5.07 | | $ | 3.74 | | $ | 2.59 | | $ | 4.28 |
| | | | | | | | | | | | | | |
Total Return (excludes any applicable sales charge) | 6.23% | | 37.38% | | 46.40% | | (37.47%) | | (23.11%) |
| | | | | | | | | | | | | | |
RATIOS/SUPPLEMENTAL DATA | | | | | | | | | | | | | | |
Net assets, end of period (in thousands) | $87,706 | | $95,211 | | $80,091 | | $69,684 | | $158,438 |
Ratio of expenses to average net assets after waivers (3) | 1.50% | | 1.50% | | 1.50% | | 1.50% | | 1.50% |
Ratio of expenses to average net assets before waivers | 1.56% | | 1.50% | | 1.60% | | 1.59% | | 1.53% |
Ratio of net investment income (loss) to average net assets (3) | 1.57% | | 1.36% | | 1.18% | | 2.09% | | 0.79% |
Portfolio turnover rate | 41.75% | | 51.12% | | 71.19% | | 79.67% | | 70.73% |
(1) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(2) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(3) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
** | Amount is less than $0.005. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY MID-NORTH AMERICAN RESOURCES FUND CLASS C
Selected per share data and ratios for the periods indicated
| | Year | | Year | | Year | | Year | | Year |
| | Ended | | Ended | | Ended | | Ended | | Ended |
| | 7/31/23 | | 7/31/22 | | 7/31/21 | | 7/31/20 | | 7/31/19 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 5.04 | | $ | 3.71 | | $ | 2.57 | | $ | 4.23 | | $ | 5.53 |
| | | | | | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | |
Net investment income (loss) (1) | $ | 0.05 | | $ | 0.04 | | $ | 0.02 | | $ | 0.05 | | $ | 0.01 |
Net realized and unrealized gain (loss) on investments (2) | | 0.22 | | | 1.32 | | | 1.14 | | | (1.64) | | | (1.31) |
Total from investment operations | $ | 0.27 | | $ | 1.36 | | $ | 1.16 | | $ | (1.59) | | $ | (1.30) |
| | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends from net investment income | $ | (0.05) | | $ | (0.03) | | $ | (0.02) | | $ | (0.07) | | $ | 0.00 |
Distributions from return of capital | | 0.00 | | | 0.00 | | | 0.00 | ** | | 0.00 | | | 0.00 |
Total distributions | $ | (0.05) | | $ | (0.03) | | $ | (0.02) | | $ | (0.07) | | $ | 0.00 |
| | | | | | | | | | | | | | |
NET ASSET VALUE, END OF PERIOD | $ | 5.26 | | $ | 5.04 | | $ | 3.71 | | $ | 2.57 | | $ | 4.23 |
| | | | | | | | | | | | | | |
Total Return (excludes any applicable sales charge) | 5.50% | | 36.90% | | 45.65% | | (37.78%) | | (23.51%) |
| | | | | | | | | | | | | | |
RATIOS/SUPPLEMENTAL DATA | | | | | | | | | | | | | | |
Net assets, end of period (in thousands) | $6,571 | | $8,893 | | $9,451 | | $9,730 | | $17,463 |
Ratio of expenses to average net assets after waivers (3) | 2.00% | | 2.00% | | 2.00% | | 2.00% | | 2.00% |
Ratio of expenses to average net assets before waivers | 2.06% | | 2.00% | | 2.10% | | 2.09% | | 2.03% |
Ratio of net investment income (loss) to average net assets (3) | 1.07% | | 0.85% | | 0.68% | | 1.58% | | 0.29% |
Portfolio turnover rate | 41.75% | | 51.12% | | 71.19% | | 79.67% | | 70.73% |
(1) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(2) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(3) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
** | Amount is less than $0.005. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY MID-NORTH AMERICAN RESOURCES FUND CLASS I
Selected per share data and ratios for the periods indicated
| | Year | | Year | | Year | | Year | | Year |
| | Ended | | Ended | | Ended | | Ended | | Ended |
| | 7/31/23 | | 7/31/22 | | 7/31/21 | | 7/31/20 | | 7/31/19 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 5.03 | | $ | 3.71 | | $ | 2.57 | | $ | 4.26 | | $ | 5.60 |
| | | | | | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | |
Net investment income (loss) (1) | $ | 0.10 | | $ | 0.08 | | $ | 0.06 | | $ | 0.09 | | $ | 0.06 |
Net realized and unrealized gain (loss) on investments (2) | | 0.22 | | | 1.32 | | | 1.14 | | | (1.64) | | | (1.35) |
Total from investment operations | $ | 0.32 | | $ | 1.40 | | $ | 1.20 | | $ | (1.55) | | $ | (1.29) |
| | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends from net investment income | $ | (0.10) | | $ | (0.08) | | $ | (0.06) | | $ | (0.14) | | $ | (0.05) |
Distributions from return of capital | | 0.00 | | | 0.00 | | | 0.00 | ** | | 0.00 | | | 0.00 |
Total distributions | $ | (0.10) | | $ | (0.08) | | $ | (0.06) | | $ | (0.14) | | $ | (0.05) |
| | | | | | | | | | | | | | |
NET ASSET VALUE, END OF PERIOD | $ | 5.25 | | $ | 5.03 | | $ | 3.71 | | $ | 2.57 | | $ | 4.26 |
| | | | | | | | | | | | | | |
Total Return (excludes any applicable sales charge) | 6.65% | | 38.17% | | | 47.12% | | (37.04%) | | (22.84%) |
| | | | | | | | | | | | | | |
RATIOS/SUPPLEMENTAL DATA | | | | | | | | | | | | | | |
Net assets, end of period (in thousands) | $44,404 | | $42,940 | | $19,839 | | $9,069 | | $20,898 |
Ratio of expenses to average net assets after waivers (3) | 1.00% | | 1.00% | | 1.00% | | 1.00% | | 1.00% |
Ratio of expenses to average net assets before waivers | 1.06% | | 1.00% | | 1.08% | | 1.09% | | 1.03% |
Ratio of net investment income to average net assets (3) | 2.07% | | 1.86% | | 1.68% | | 2.59% | | 1.29% |
Portfolio turnover rate | 41.75% | | 51.12% | | 71.19% | | 79.67% | | 70.73% |
(1) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(2) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(3) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
** | Amount is less than $0.005. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY SHORT TERM GOVERNMENT FUND CLASS A
Selected per share data and ratios for the periods indicated
| | | | | | | | Two | | Period | |
| | Year | | Year | | Year | | Months | | From |
| | Ended | | Ended | | Ended | | Ended | | 1/21/20* to |
| | 7/31/23 | | 7/31/22 | | 7/31/21 | | 7/31/20 | | 5/31/20 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 8.43 | | $ | 8.98 | | $ | 9.22 | | $ | 9.21 | | $ | 9.26 |
| | | | | | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | |
Net investment income (loss) (1) | $ | 0.00 | ** | $ | 0.07 | | $ | 0.19 | | $ | 0.02 | | $ | 0.09 |
Net realized and unrealized gain (loss) on investments (2) | | (0.18) | | | (0.47) | | | (0.14) | | | 0.02 | | | 0.02 |
Total from investment operations | $ | (0.18) | | $ | (0.40) | | $ | 0.05 | | $ | 0.04 | | $ | 0.11 |
| | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends from net investment income | $ | (0.02) | | $ | (0.15) | | $ | (0.29) | | $ | (0.03) | | $ | (0.16) |
Total distributions | $ | (0.02) | | $ | (0.15) | | $ | (0.29) | | $ | (0.03) | | $ | (0.16) |
| | | | | | | | | | | | | | |
NET ASSET VALUE, END OF PERIOD | $ | 8.23 | | $ | 8.43 | | $ | 8.98 | | $ | 9.22 | | $ | 9.21 |
| | | | | | | | | | | | | | |
Total Return (excludes any applicable sales charge) # | (2.08%) | | (4.51%) | | 0.50% | | 0.41% | | 1.22% |
| | | | | | | | | | | | | | |
RATIOS/SUPPLEMENTAL DATA | | | | | | | | | | | | | | |
Net assets, end of period (in thousands) | $308 | | $703 | | $724 | | $15 | | $15 |
Ratio of expenses to average net assets after waivers ^ (3) | 0.80% | | 0.80% | | 0.80% | | 0.80% | | 0.80% |
Ratio of expenses to average net assets before waivers ^ | 1.33% | | 1.18% | | 1.17% | | 1.33% | | 1.28% |
Ratio of net investment income (loss) to average net assets ^ (3) | (0.10%) | | 0.84% | | 2.14% | | 1.53% | | 2.68% |
Portfolio turnover rate # | 60.63% | | 51.52% | | 140.79% | | 16.03% | | 65.85% |
| | | | | | | | | | | | | | | | | | | | | | | |
(1) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(2) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(3) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
| |
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
* | Commencement of operations. ** Amount is less than ($0.005). |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY SHORT TERM GOVERNMENT FUND CLASS I
Selected per share data and ratios for the periods indicated
| | | | | | | | Two | | | | |
| | Year | | Year | | Year | | Months | | Year | | Year |
| | Ended | | Ended | | Ended | | Ended | | Ended | | Ended |
| | 7/31/23 | | 7/31/22 | | 7/31/21 | | 7/31/20 | | 5/31/20 | | 5/31/19 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 8.44 | | $ | 8.98 | | $ | 9.22 | | $ | 9.21 | | $ | 9.30 | | $ | 9.36 |
| | | | | | | | | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | |
Net investment income (loss) (1) | $ | 0.01 | | $ | 0.09 | | $ | 0.22 | | $ | 0.03 | | $ | 0.36 | | $ | 0.29 |
Net realized and unrealized gain (loss) on investments (2) | | (0.18) | | | (0.46) | | | (0.15) | | | 0.01 | | | (0.05) | | | (0.05) |
Total from investment operations | $ | (0.17) | | $ | (0.37) | | $ | 0.07 | | $ | 0.04 | | $ | 0.31 | | $ | 0.24 |
| | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | |
Dividends from net investment income | $ | (0.03) | | $ | (0.17) | | $ | (0.31) | | $ | (0.03) | | $ | (0.40) | | $ | (0.30) |
Total distributions | $ | (0.03) | | $ | (0.17) | | $ | (0.31) | | $ | (0.03) | | $ | (0.40) | | $ | (0.30) |
| | | | | | | | | | | | | | | | | |
NET ASSET VALUE, END OF PERIOD | $ | 8.24 | | $ | 8.44 | | $ | 8.98 | | $ | 9.22 | | $ | 9.21 | | $ | 9.30 |
| | | | | | | | | | | | | | | | | |
Total Return (excludes any applicable sales charge) # | (1.97%) | | (4.18%) | | 0.75% | | 0.46% | | 3.25% | | 2.66% |
| | | | | | | | | | | | | | | | | |
RATIOS/SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | |
Net assets, end of period (in thousands) | $14,704 | | $19,609 | | $31,576 | | $34,741 | | $21,038 | | $17,418 |
Ratio of expenses to average net assets after waivers ^ (3) | 0.55% | | 0.55% | | 0.55% | | 0.55% | | 0.55% | | 0.55% |
Ratio of expenses to average net assets before waivers ^ | 1.08% | | 0.93% | | 0.93% | | 1.08% | | 1.21% | | 1.24% |
Ratio of net investment income (loss) to average net assets ^ (3) | 0.15% | | 1.09% | | 2.38% | | 1.78% | | 3.88% | | 3.11% |
Portfolio turnover rate # | 60.63% | | 51.52% | | 140.79% | | 16.03% | | 65.85% | | 15.24% |
(1) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(2) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(3) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
| | | | | | | | | | | | | |
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Trustees of
The Integrity Funds
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of The Integrity Funds comprising the funds listed below (the “Funds”) as of July 31, 2023, the related statements of operations and changes in net assets, the related notes, and the financial highlights for each of the periods indicated below, (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of July 31, 2023, the results of their operations, the changes in their net assets, and the financial highlights for each of the periods indicated below in conformity with accounting principles generally accepted in the United States of America.
Fund Name | Statements of Operations | Statements of Changes in Net Assets | Financial Highlights |
Integrity Dividend Harvest Fund
Integrity Growth & Income Fund,
Integrity High Income Fund, and
Integrity Mid-North American Resources Fund | For the year ended July 31, 2023 | For the years ended July 31, 2023, and 2022 | For the years ended July 31, 2023, 2022, 2021, 2020, and 2019 |
Integrity Short Term Government Fund | For the year ended July 31, 2023 | For the years ended July 31, 2023, and 2022 | For the years ended July 31, 2023, 2022, and 2021, the two months ended July 31, 2020, and the years ended May 31, 2020, and 2019 |
Integrity Dividend Summit Fund | For the period from May 1, 2023 (commencement of operations) through July 31, 2023 |
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 laws 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 audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.
Our audits included performing procedures to assess the risks 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 July 31, 2023, by correspondence with the custodian, counterparties, and brokers; when replies were not received from brokers, we performed other auditing procedures. 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 investment companies advised by Viking Fund Management since 2009.
COHEN & COMPANY, LTD.
Cleveland, Ohio
September 29, 2023
EXPENSE EXAMPLE (unaudited)
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads), redemption fees and exchange fees; and (2) ongoing costs, including management fees, distribution (12b-1) fees and other Funds expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the one-half year period shown below and held for the entire one-half year period.
The section in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns 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 account value of $8,600 divided by $1,000 equals 8.6), then multiply the result by the number in the appropriate column for your share class in the column entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
The section in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the section in the table under the heading “Hypothetical (5% return before expenses)” 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 | |
| | | Account | Account | Paid | Annualized |
| | | Value | Value | During | Expense |
| | 1/31/23 | 7/31/23 | Period* | Ratio |
Integrity Dividend
Harvest Fund | Actual - Class A | $1,000.00 | $1,006.30 | $4.73 | 0.95% |
Actual - Class C | $1,000.00 | $1,002.00 | $8.44 | 1.70% |
Actual - Class I | $1,000.00 | $1,007.00 | $3.48 | 0.70% |
Hypothetical - Class A | $1,000.00 | $1,020.08 | $4.76 | 0.95% |
Hypothetical - Class C | $1,000.00 | $1,016.36 | $8.50 | 1.70% |
Hypothetical - Class I | $1,000.00 | $1,021.32 | $3.51 | 0.70% |
Integrity Dividend
Summit Fund** | Actual - Class A | $1,000.00 | $1,032.50 | $2.51 | 0.99% |
Actual - Class C | $1,000.00 | $1,032.50 | $4.41 | 1.74% |
Actual - Class I | $1,000.00 | $1,033.10 | $1.88 | 0.74% |
Hypothetical - Class A | $1,000.00 | $1,010.00 | $2.48 | 0.99% |
Hypothetical - Class C | $1,000.00 | $1,008.13 | $4.36 | 1.74% |
Hypothetical - Class I | $1,000.00 | $1,010.62 | $1.85 | 0.74% |
Integrity Growth &
Income Fund | Actual - Class A | $1,000.00 | $1,110.80 | $6.49 | 1.24% |
Actual - Class C | $1,000.00 | $1,106.70 | $8.20 | 1.57% |
Actual - Class I | $1,000.00 | $1,112.30 | $5.18 | 0.99% |
Hypothetical - Class A | $1,000.00 | $1,018.65 | $6.21 | 1.24% |
Hypothetical - Class C | $1,000.00 | $1,017.01 | $7.85 | 1.57% |
Hypothetical - Class I | $1,000.00 | $1,019.89 | $4.96 | 0.99% |
Integrity High
Income Fund | Actual - Class A | $1,000.00 | $1,014.90 | $4.95 | 0.99% |
Actual - Class C | $1,000.00 | $1,012.60 | $8.68 | 1.74% |
Actual - Class I | $1,000.00 | $1,016.20 | $3.70 | 0.74% |
Hypothetical - Class A | $1,000.00 | $1,019.89 | $4.96 | 0.99% |
Hypothetical - Class C | $1,000.00 | $1,016.17 | $8.70 | 1.74% |
Hypothetical - Class I | $1,000.00 | $1,021.12 | $3.71 | 0.74% |
Integrity Mid-North
American Resources Fund | Actual - Class A | $1,000.00 | $984.10 | $7.38 | 1.50% |
Actual - Class C | $1,000.00 | $981.30 | $9.83 | 2.00% |
Actual - Class I | $1,000.00 | $986.60 | $4.93 | 1.00% |
Hypothetical - Class A | $1,000.00 | $1,017.36 | $7.50 | 1.50% |
Hypothetical - Class C | $1,000.00 | $1,014.88 | $9.99 | 2.00% |
Hypothetical - Class I | $1,000.00 | $1,019.84 | $5.01 | 1.00% |
Integrity Short Term
Government Fund | Actual - Class A | $1,000.00 | $1,000.30 | $3.97 | 0.80% | |
Actual - Class I | $1,000.00 | $1,000.80 | $2.73 | 0.55% | |
Hypothetical - Class A | $1,000.00 | $1,020.83 | $4.01 | 0.80% | |
Hypothetical - Class I | $1,000.00 | $1,022.07 | $2.76 | 0.55% | |
*Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied 181 days in the one-half year period, and divided by 365 days in the fiscal year (to reflect the one-half year period).
**Dividend Summit Fund’s beginning account value is as of May 1, 2023 (inception of operations). | |
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LIQUIDITY RISK MANAGEMENT PROGRAM (unaudited)
The Integrity Funds have adopted and implemented a written liquidity risk management program (the "LRMP") as required by Rule 22e-4 under the Investment Company Act of 1940, as amended. The LRMP is reasonably designed to assess and manage each Fund’s liquidity risk, taking into consideration each Fund’s investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed market conditions; its short- and long-term cash flow projections; and its cash holdings and access to other liquidity management tools such as available funding sources. The Viking Funds’ Board of Trustees approved the appointment of the Funds’ investment adviser, Viking Fund Management Inc. ("Viking"), as the administrator of the LRMP.
Viking manages liquidity risks associated with the Funds’ investments by monitoring, among other things, cash and cash equivalents, any use of derivatives, the concentration of investments, the appropriateness of each Fund’s investment strategy, and by classifying every Fund investment as either highly liquid, moderately liquid, less liquid or illiquid on at least a monthly basis.
At a meeting held on April 28, 2023, Viking provided an oral and written report to the Trustees on the operation and effectiveness of the LRMP during the previous year. The report from Viking concluded that the Funds did not experience any significant liquidity challenges during the covered period, and the Funds’ LRMP is reasonably designed to assess and manage its liquidity risk. The report also concluded that the LRMP continues to operate adequately and effectively to enable Viking to oversee and manage liquidity risk and ensure the Funds are able to meet redemption requests without significant dilution to the remaining investors’ interest in the Funds. During the review period, the Funds’ portfolio consisted primarily of highly liquid investments, which are defined as cash and any investments that the Funds reasonably expects to be converted to cash in current market conditions in three business days or less without significantly changing the market value of the investment. Therefore, the Funds have not adopted a highly liquid investment minimum. The Funds’ investments were below the limitation on illiquid investments during the review period. Additionally, Viking indicated that no events occurred that would require the filing of Form N-LIQUID and recommended no material changes to the LRMP.
BOARD OF TRUSTEES AND OFFICERS (unaudited)
The Board of Trustees (“Board”) of the Funds consists of four Trustees (the “Trustees”). These same individuals, unless otherwise noted, also serve as trustees for the six series of Viking Mutual Funds. Three Trustees are not “interested persons” (75% of the total) as defined under the 1940 Act (the “Independent Trustees”). The remaining Trustee is “interested” (the “Interested Trustees”) by virtue of his affiliation with Viking Fund Management, LLC and its affiliates.”
For the purposes of this section, the “Fund Complex” consists of the six series of The Integrity Funds and the six series of Viking Mutual Funds.
Each Trustee serves a Fund until its termination; or until the Trustee’s retirement, resignation, or death; or otherwise as specified in the Funds’ organizational documents. Each Officer serves an annual term. The tables that follow show information for each Trustee and Officer of the Funds.
INDEPENDENT TRUSTEES | |
Name, Date of Birth, Date Service Began, and Number of Funds Overseen in Fund Complex | Principal Occupations for Past Five Years
and Directorships Held During Past Five Years |
Wade A. Dokken
Birth date: March 3, 1960
Began serving: February 2016
Funds overseen: 12 funds | Principal occupation(s): Member, WealthVest Financial Partners (2009 to present); Co-President, WealthVest Marketing (2009 to present), Trustee: Integrity Managed Portfolios (2016 to 2018), The Integrity Funds (2016 to present), and Viking Mutual Funds (2016 to present) Other Directorships Held: Not Applicable |
R. James Maxson
Birth date: December 12, 1947
Began serving: June 2003
Funds overseen: 12 funds | Principal occupation(s): Attorney: Maxson Law Office P.C. (2002 to 2019); Trustee: Integrity Managed Portfolios (1999 to 2018), The Integrity Funds (2003 to present), and Viking Mutual Funds (2009 to present) Other Directorships Held: Peoples State Bank of Velva |
Jerry M. Stai
Birth date: March 31, 1952
Began serving: January 2006
Funds overseen: 12 funds | Principal occupation(s): Minot State University (1999 to present); Trustee: Integrity Managed Portfolios (2006 to 2018), The Integrity Funds (2006 to present), and Viking Mutual Funds (2009 to present) Other Directorships Held: Not Applicable |
The Statement of Additional Information (“SAI”) contains more information about the Funds’ Trustees and is available without charge upon request, by calling Integrity Funds Distributor at 800-276-1262.
INTERESTED TRUSTEE | |
Name, Position with Trust, Date of Birth, Date Service Began, and Number of Funds Overseen in Fund Complex | Principal Occupations for Past Five Years
and Directorships Held During Past Five Years |
Robert E. Walstad(1)
Chairman
Birth date: August 16, 1944
Began serving: June 2003
Funds overseen: 12 funds | Principal occupation(s): Governor (2009 to present): Corridor Investors, LLC; Trustee and Chairman: Integrity Managed Portfolios (1996 to 2018), The Integrity Funds (2003 to present), and Viking Mutual Funds (2009 to present) Other Directorships Held: Not Applicable |
(1) Trustee who is an “interested person” of the Funds as defined in the 1940 Act. Mr. Walstad is an interested person by virtue of being an Officer of the Funds and ownership in Corridor Investors, LLC the parent company of Viking Fund Management, Integrity Fund Services, and Integrity Fund Distributors. |
The SAI contains more information about the Funds’ Trustees and is available without charge upon request, by calling Integrity Funds Distributor at 800-276-1262.
OTHER OFFICERS | |
Name, Position with Trust, Date of Birth, and Date Service Began | Principal Occupations for Past Five Years
and Directorships Held During Past Five Years |
Shannon D. Radke
President
Birth date: September 7, 1966
Began serving: August 1999 | Principal occupation(s): Governor, CEO, and President (2009 to present): Corridor Investors, LLC; Governor and President (1998 to present) and Senior Portfolio Manager (1999 to present): Viking Fund Management, LLC; Governor and President (2009 to present): Integrity Fund Services, LLC and Integrity Funds Distributor, LLC; President: Integrity Managed Portfolios (2009 to 2018), The Integrity Funds (2009 to present), and Viking Mutual Funds (1999 to present) Other Directorships Held: Minot Area Community Foundation |
Peter A. Quist
Vice President
Birth date: February 23, 1934
Began serving: June 2003 | Principal occupation(s): Governor (2009 to present): Corridor Investors, LLC; Attorney (inactive); Vice President: Integrity Managed Portfolios (1996 to 2018); The Integrity Funds (2003 to present); and Viking Mutual Funds (2009 to present) Other Directorships Held: Not Applicable |
Shelly Nahrstedt
Treasurer
Birth date: August 31, 1961
Began serving: August 2020 | Principal occupation(s): Chief Operating Officer, Integrity Fund Services, LLC, and Treasurer, The Integrity Funds (2020 to present); Director of Financial Fund Administration, PNC Capital Advisors, LLC, and Treasurer, PNC Funds (2018-2019); Director, Cohen & Company (2003-2018). Other Directorships Held: Not applicable |
Brent M. Wheeler
Secretary and Mutual Fund
Chief Compliance Officer
Birth date: October 9, 1970
Began serving: MF CCO: October 2005 Secretary: October 2009 | Principal occupation(s): Mutual Fund Chief Compliance Officer: Integrity Managed Portfolios (2005 to 2018), The Integrity Funds, (2005 to present), and Viking Mutual Funds (2009 to present); Secretary: Integrity Managed Portfolios (2009 to 2018), The Integrity Funds and Viking Mutual Funds (2009 to present) Other Directorships Held: Not Applicable |
The SAI contains more information about the Funds’ Trustees and is available without charge upon request, by calling Integrity Funds Distributor at 800-276-1262.
Rev. 11/2017
FACTS | WHAT DOES INTEGRITY VIKING FUNDS DO WITH YOUR PERSONAL INFORMATION? |
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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 depend on the product or service you have with us. This information can include: · Social Security number, name, address · Account balance, transaction history, account transactions · Investment experience, wire transfer instructions When you are no longer our customer, we continue to share your information as described in this notice. |
How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Integrity Viking Funds chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does Integrity Viking Funds share? | 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 | Yes | No |
For joint marketing with other financial companies | No | We don’t share |
For our affiliates’ everyday business purposes- information about your transactions and experiences | Yes | No |
For our affiliates’ everyday business purposes- information about your creditworthiness | No | We don’t share |
For non-affiliates to market to you | No | We don’t share |
Questions? | Call 1-800-601-5593 or go to www.integrityvikingfunds.com |
PRIVACY POLICY (Continued)
Who we are |
Who is providing this notice? | Integrity Viking Funds (a family of investment companies) |
What we do |
How does Integrity Viking Funds 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. We · train employees on privacy, information security and protection of client information. · limit access to nonpublic personal information to those employees requiring such information in performing their job functions. |
How does Integrity Viking Funds collect my personal information? | We collect your personal information, for example, when you: · open an account or seek financial or tax advice · provide account information or give us your contact information · make a wire transfer We also collect your personal information from 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 non-affiliates 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 · The Integrity Funds · Viking Mutual Funds · Corridor Investors, LLC · Viking Fund Management, LLC · Integrity Funds Distributor, LLC · Integrity Fund Services, LLC |
Non-affiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies. Integrity Viking Funds does not share with non-affiliates so they can market to you. |
Joint marketing | A formal agreement between non-affiliated financial companies that together market financial products or services to you. Integrity Viking Funds doesn’t jointly market. |
Integrity Viking Funds includes:
· The Integrity Funds
· Viking Mutual Funds
PROXY VOTING OF FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to securities held in the Funds’ portfolios are available, without charge and upon request, by calling 800-276-1262. A report on Form N-PX of how the Funds voted any such proxies during the most recent 12-month period ended June 30 is available through the Funds’ website at www.integrityvikingfunds.com. The information is also available from the Electronic Data Gathering Analysis and Retrieval (“EDGAR”) database on the website of the Securities and Exchange Commission (“SEC”) at www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
Within 60 days of the end of their second and fourth fiscal quarters, the Funds provide a complete schedule of portfolio holdings in their semi-annual and annual reports on the Form N-CSR(s). These reports are filed electronically with the SEC and are delivered to the shareholders of the Funds. The Funds also file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Funds’ Forms N-PORT(s) and N-CSR(s) are available on the SEC’s website at www.sec.gov. The Funds’ Forms N-PORT(s) and N-CSR(s) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 202-551-8090. You may also access this information from the Funds’ website at www.integrityvikingfunds.com.
SHAREHOLDER INQUIRIES AND MAILINGS
Direct inquiries regarding the Funds to: Integrity Funds Distributor, LLC PO Box 500 Minot, ND 58702 Phone: 800-276-1262 | Direct inquiries regarding account information to: Integrity Fund Services, LLC PO Box 759 Minot, ND 58702 Phone: 800-601-5593 |
To reduce their expenses, the Funds may mail only one copy of their prospectus and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive additional copies of these documents, please call Integrity Funds Distributor at 800-276-1262 or contact your financial institution. Integrity Funds Distributor will begin sending you individual copies 30 days after receiving your request.
Integrity Viking Funds are sold by prospectus only. An investor should consider the investment objectives, risks, and charges and expenses of the investment company carefully before investing. The prospectus contains this and other information about the investment company. You may obtain a prospectus at no cost from your financial adviser or at www.integrityvikingfunds.com. Please read the prospectus carefully before investing.
Equity Funds
Integrity Dividend Harvest Fund
Integrity Dividend Summit Fund
Integrity Growth & Income Fund
Integrity Mid-North American Resources Fund
Corporate Bond Fund
Integrity High Income Fund
State-Specific Tax-Exempt Bond Funds
Viking Tax-Free Fund for North Dakota
Viking Tax-Free Fund for Montana
Kansas Municipal Fund
Maine Municipal Fund
Nebraska Municipal Fund
Oklahoma Municipal Fund
Government Bond Fund
Integrity Short Term Government Fund
Item 2. CODE OF ETHICS.
At the end of the period covered by this report, the registrant has adopted a code of ethics as defined in Item 2 of Form N-CSR that applies to the registrant’s principal executive officer and principal financial officer (herein referred to as the “Code”). There were no amendments to the Code during the period covered by this report. The registrant did not grant any waivers, including implicit waivers, from any provisions of the Code during the period of this report. The Code is available on the Integrity Viking Funds website at http://www.integrityvikingfunds.com. A copy of the Code is also available, without charge, upon request by calling 800-601-5593. The Code is filed herewith pursuant to Item 12(a)(1) as EX-99.CODE ETH.
Item 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees has determined that Jerry Stai is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Stai is “independent” for purposes of Item 3 of Form N-CSR.
Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
| (a) | Audit Fees: The aggregate fees billed for each of the last two fiscal years for professional services rendered by Cohen Fund Audit Services, Ltd. (“Cohen”), the principal accountant for the audit of the registrant’s annual financial statements, for services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $102,552 for the year ended July 31, 2023 and $74,048 for the year ended July 31, 2022. |
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| (b) | Audit-Related Fees: The aggregate fees billed in each of the last two fiscal years for assurance and related services by Cohen that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were $0 for the year ended July 31, 2023 and $0 for the year ended July 31, 2022. |
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| (c) | Tax Fees: The aggregate fees billed in each of the last two fiscal years for professional services rendered by Cohen for tax compliance, tax advice, and tax planning were $15,275 for the year ended July 31, 2022 and $12,500 for the year ended July 31, 2022. Such services included review of excise distribution calculations (if applicable), preparation of the Trust’s federal, state, and excise tax returns, tax services related to mergers, and routine counseling. |
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| (d) | All Other Fees: The aggregate fees billed in each of the last two fiscal years for products and services provided by Cohen, other than the services reported in paragraphs (a) through (c) of this Item: None. |
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| (e) | (1) | Audit Committee Pre-Approval Policies and Procedures |
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| | | | The registrant’s audit committee has adopted policies and procedures that require the audit committee to pre-approve all audit and non-audit services provided to the registrant by the principal accountant. |
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| | (2) | Percentage of services referred to in 4(b) through 4(d) that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X |
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| | | | 0% of the services described in paragraphs (b) through (d) of Item 4 were not pre-approved by the audit committee. |
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| (f) | All services performed on the engagement to audit the registrant’s financial statements for the most recent fiscal year-end were performed by Cohen’s full-time permanent employees. |
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| (g) | Non-Audit Fees: None. |
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| (h) | Principal Accountant’s Independence: The registrant’s auditor did not provide any non-audit services to the registrant’s investment adviser or any entity controlling, controlled by, or controlled with the registrant’s investment adviser that provides ongoing services to the registrant. |
Item 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable
Item 6. INVESTMENTS.
The Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable
Item 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable
Item 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable
Item 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees in the last fiscal half-year.
Item 11. CONTROLS AND PROCEDURES.
| (a) | Based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this Form N-CSR (the “Report”), the registrant’s principal executive officer and principal financial officer believe that the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effectively designed to ensure that information required to be disclosed by the registrant in the Report is recorded, processed, summarized and reported by the filing date, including ensuring that information required to be disclosed in the Report is accumulated and communicated to the registrant’s principal executive officer and principal financial officer who are making certifications in the Report, as appropriate, to allow timely decisions regarding required disclosure. |
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| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant’s most recent fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
Item 12. EXHIBITS.
| (a) | (1) | Code of ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99. CODE ETH. |
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| | (2) | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the 1940 Act (17 CFR 270.30a-2) is filed and attached hereto as EX-99. CERT. |
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| | (3) | Not applicable. |
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| (b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is filed and attached hereto. |
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.
The Integrity Funds
By: /s/ Shannon D. Radke
Shannon D. Radke
President
Date: October 4, 2023
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: /s/ Shannon D. Radke
Shannon D. Radke
President
Date: October 4, 2023
By: /s/ Shelly Nahrstedt
Shelly Nahrstedt
Treasurer
Date: October 4, 2023
