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: 811-08194
FINANCIAL INVESTORS TRUST
(Exact name of registrant as specified in charter)
1290 Broadway, Suite 1100, Denver, Colorado 80203
(Address of principal executive offices) (Zip code)
Karen Gilomen, Esq., Secretary
Financial Investors Trust
1290 Broadway, Suite 1100
Denver, Colorado 80203
(Name and address of agent for service)
Registrant’s telephone number, including area code:303-623-2577
Date of fiscal year end:October 31
Date of reporting period:April 30, 2019
Item 1. Reports to Stockholders.
TABLE OF CONTENTS
Disclosure of Fund Expenses | 1 |
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | |
Management Commentary | 6 |
Performance Update | 8 |
Consolidated Statement of Investments | 10 |
Consolidated Statement of Assets and Liabilities | 15 |
Consolidated Statement of Operations | 16 |
Consolidated Statements of Changes in Net Assets | 17 |
Consolidated Financial Highlights | 18 |
ALPS | Kotak India Growth Fund | |
Management Commentary | 22 |
Performance Update | 24 |
Consolidated Statement of Investments | 26 |
Consolidated Statement of Assets and Liabilities | 28 |
Consolidated Statement of Operations | 29 |
Consolidated Statements of Changes in Net Assets | 30 |
Consolidated Financial Highlights | 31 |
ALPS | Smith Funds | |
Management Commentary | 35 |
Performance Update | 38 |
Statements of Investments | 42 |
Statements of Assets and Liabilities | 53 |
Statements of Operations | 54 |
Statements of Changes in Net Assets | 55 |
Financial Highlights | 57 |
ALPS | Red Rocks Listed Private Equity Fund | |
Management Commentary | 65 |
Performance Update | 67 |
Statement of Investments | 70 |
Statement of Assets and Liabilities | 72 |
Statement of Operations | 73 |
Statements of Changes in Net Assets | 74 |
Financial Highlights | 75 |
ALPS | WMC Research Value Fund | |
Management Commentary | 80 |
Performance Update | 81 |
Statement of Investments | 83 |
Statement of Assets and Liabilities | 86 |
Statement of Operations | 87 |
Statements of Changes in Net Assets | 88 |
Financial Highlights | 89 |
Clough China Fund | |
Management Commentary | 93 |
Performance Update | 95 |
Statement of Investments | 97 |
Statement of Assets and Liabilities | 100 |
Statement of Operations | 101 |
Statements of Changes in Net Assets | 102 |
Financial Highlights | 103 |
RiverFront Global Allocation Series | |
Management Commentary | 107 |
Performance Update | 110 |
Statements of Investments | 120 |
Statements of Assets and Liabilities | 125 |
Statements of Operations | 127 |
Statements of Changes in Net Assets | 128 |
Financial Highlights | 133 |
Notes to Financial Statements | 155 |
Additional Information | 184 |
Privacy Policy | 185 |
Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the Funds’ annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary (such as a broker-dealer or bank). Instead, the reports will be made available on the Funds’ website (www.alpsfunds.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a Fund electronically anytime by contacting your financial intermediary.
You may elect to receive all future reports in paper free of charge. You can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account with your financial intermediary.
alpsfunds.com
Disclosure of Fund Expenses
April 30, 2019 (Unaudited)
Examples.As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including applicable sales charges (loads) and redemption fees; and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, shareholder service fees and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested on November 1, 2018 and held until April 30, 2019.
Actual Expenses.The first line under each class in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During Period November 1, 2018 – April 30, 2019” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes. The second line under each class in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other mutual funds. To do so, compare these 5% hypothetical examples 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 or redemption fees. Therefore, the second line under each class in the table below 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.
1| April 30, 2019
Disclosure of Fund Expenses
April 30, 2019 (Unaudited)
Beginning Account Value November 1, 2018 | Ending Account Value April 30, 2019 | Expense Ratio(a) | Expenses Paid During Period November 1, 2018 - April 30, 2019(b) | |||||||||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund(c) | ||||||||||||||||
Investor Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 960.70 | 1.37 | % | $ | 6.66 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.00 | 1.37 | % | $ | 6.85 | ||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 960.70 | 1.41 | % | $ | 6.85 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.80 | 1.41 | % | $ | 7.05 | ||||||||
Class C | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 956.50 | 2.04 | % | $ | 9.90 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.68 | 2.04 | % | $ | 10.19 | ||||||||
Class I | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 961.40 | 1.13 | % | $ | 5.50 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.19 | 1.13 | % | $ | 5.66 | ||||||||
ALPS | Kotak India Growth Fund(d) | ||||||||||||||||
Investor Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,173.00 | 1.90 | % | $ | 10.24 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.37 | 1.90 | % | $ | 9.49 | ||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,172.30 | 2.00 | % | $ | 10.77 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.88 | 2.00 | % | $ | 9.99 | ||||||||
Class C | $ | |||||||||||||||
Actual | $ | 1,000.00 | 1,169.10 | 2.60 | % | $ | 13.98 | |||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,011.90 | 2.60 | % | $ | 12.97 | ||||||||
Class I | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,174.30 | 1.60 | % | $ | 8.63 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.86 | 1.60 | % | $ | 8.00 | ||||||||
ALPS | Smith Short Duration Bond Fund | ||||||||||||||||
Investor Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,027.30 | 0.77 | % | $ | 3.87 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.98 | 0.77 | % | $ | 3.86 | ||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,026.50 | 0.70 | % | $ | 3.52 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | 0.70 | % | $ | 3.51 | ||||||||
Class C | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,022.60 | 1.49 | % | $ | 7.47 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.41 | 1.49 | % | $ | 7.45 | ||||||||
Class I | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,027.60 | 0.49 | % | $ | 2.46 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.36 | 0.49 | % | $ | 2.46 | ||||||||
ALPS | Smith Total Return Bond Fund | ||||||||||||||||
Investor Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,060.70 | 0.96 | % | $ | 4.91 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.03 | 0.96 | % | $ | 4.81 | ||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,061.00 | 0.92 | % | $ | 4.70 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.23 | 0.92 | % | $ | 4.61 | ||||||||
Class C | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,057.20 | 1.67 | % | $ | 8.52 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.51 | 1.67 | % | $ | 8.35 | ||||||||
Class I | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,062.30 | 0.67 | % | $ | 3.43 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.47 | 0.67 | % | $ | 3.36 |
2| April 30, 2019
Disclosure of Fund Expenses
April 30, 2019 (Unaudited)
Beginning Account Value November 1, 2018 | Ending Account Value April 30, 2019 | Expense Ratio(a) | Expenses Paid During Period November 1, 2018 - April 30, 2019(b) | |||||||||||||
ALPS | Red Rocks Listed Private Equity Fund | ||||||||||||||||
Investor Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,100.40 | 1.40 | % | $ | 7.29 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.85 | 1.40 | % | $ | 7.00 | ||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,100.30 | 1.37 | % | $ | 7.13 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.00 | 1.37 | % | $ | 6.85 | ||||||||
Class C | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,095.90 | 2.16 | % | $ | 11.22 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.08 | 2.16 | % | $ | 10.79 | ||||||||
Class I | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,100.70 | 1.20 | % | $ | 6.25 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.84 | 1.20 | % | $ | 6.01 | ||||||||
Class R | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,098.90 | 1.60 | % | $ | 8.33 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.86 | 1.60 | % | $ | 8.00 | ||||||||
ALPS | WMC Research Value Fund | ||||||||||||||||
Investor Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,077.20 | 1.15 | % | $ | 5.92 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.09 | 1.15 | % | $ | 5.76 | ||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,077.20 | 1.15 | % | $ | 5.92 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.09 | 1.15 | % | $ | 5.76 | ||||||||
Class C | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,073.70 | 1.90 | % | $ | 9.77 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.37 | 1.90 | % | $ | 9.49 | ||||||||
Class I | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,077.60 | 0.90 | % | $ | 4.64 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.33 | 0.90 | % | $ | 4.51 | ||||||||
Clough China Fund | ||||||||||||||||
Investor Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,161.20 | 1.95 | % | $ | 10.45 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.12 | 1.95 | % | $ | 9.74 | ||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,161.20 | 1.95 | % | $ | 10.45 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.12 | 1.95 | % | $ | 9.74 | ||||||||
Class C | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,157.20 | 2.70 | % | $ | 14.44 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,011.41 | 2.70 | % | $ | 13.47 | ||||||||
Class I | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,163.20 | 1.70 | % | $ | 9.12 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.36 | 1.70 | % | $ | 8.50 |
3| April 30, 2019
Disclosure of Fund Expenses
April 30, 2019 (Unaudited)
Beginning Account Value November 1, 2018 | Ending Account Value April 30, 2019 | Expense Ratio(a) | Expenses Paid During Period November 1, 2018 - April 30, 2019(b) | |||||||||||||
RiverFront Asset Allocation Aggressive | ||||||||||||||||
Investor Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,054.10 | 0.50 | % | $ | 2.55 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.32 | 0.50 | % | $ | 2.51 | ||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,053.80 | 0.50 | % | $ | 2.55 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.32 | 0.50 | % | $ | 2.51 | ||||||||
Class C | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,049.90 | 1.25 | % | $ | 6.35 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.60 | 1.25 | % | $ | 6.26 | ||||||||
Class I | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,055.60 | 0.25 | % | $ | 1.27 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.55 | 0.25 | % | $ | 1.25 | ||||||||
Investor Class II | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,053.90 | 0.50 | % | $ | 2.55 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.32 | 0.50 | % | $ | 2.51 | ||||||||
Class L | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,054.80 | 0.25 | % | $ | 1.27 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.55 | 0.25 | % | $ | 1.25 | ||||||||
RiverFront Asset Allocation Growth | ||||||||||||||||
Investor Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,053.60 | 0.50 | % | $ | 2.55 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.32 | 0.50 | % | $ | 2.51 | ||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,054.40 | 0.50 | % | $ | 2.55 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.32 | 0.50 | % | $ | 2.51 | ||||||||
Class C | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,049.50 | 1.25 | % | $ | 6.35 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.60 | 1.25 | % | $ | 6.26 | ||||||||
Class I | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,054.70 | 0.25 | % | $ | 1.27 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.55 | 0.25 | % | $ | 1.25 | ||||||||
RiverFront Asset Allocation Growth & Income | ||||||||||||||||
Investor Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,055.60 | 0.50 | % | $ | 2.55 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.32 | 0.50 | % | $ | 2.51 | ||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,056.00 | 0.50 | % | $ | 2.55 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.32 | 0.50 | % | $ | 2.51 | ||||||||
Class C | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,051.90 | 1.25 | % | $ | 6.36 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.60 | 1.25 | % | $ | 6.26 | ||||||||
Class I | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,057.90 | 0.25 | % | $ | 1.28 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.55 | 0.25 | % | $ | 1.25 |
4| April 30, 2019
Disclosure of Fund Expenses
April 30, 2019 (Unaudited)
Beginning Account Value November 1, 2018 | Ending Account Value April 30, 2019 | Expense Ratio(a) | Expenses Paid During Period November 1, 2018 - April 30, 2019(b) | |||||||||||||
RiverFront Asset Allocation Moderate | ||||||||||||||||
Investor Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,054.10 | 0.50 | % | $ | 2.55 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.32 | 0.50 | % | $ | 2.51 | ||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,055.60 | 0.50 | % | $ | 2.55 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.32 | 0.50 | % | $ | 2.51 | ||||||||
Class C | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,051.30 | 1.25 | % | $ | 6.36 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.60 | 1.25 | % | $ | 6.26 | ||||||||
Class I | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,056.30 | 0.25 | % | $ | 1.27 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.55 | 0.25 | % | $ | 1.25 | ||||||||
RiverFront Asset Allocation Income & Growth | ||||||||||||||||
Investor Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,054.10 | 0.50 | % | $ | 2.55 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.32 | 0.50 | % | $ | 2.51 | ||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,054.50 | 0.50 | % | $ | 2.55 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.32 | 0.50 | % | $ | 2.51 | ||||||||
Class C | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,049.50 | 1.25 | % | $ | 6.35 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.60 | 1.25 | % | $ | 6.26 | ||||||||
Class I | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,055.20 | 0.25 | % | $ | 1.27 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.55 | 0.25 | % | $ | 1.25 |
(a) | Annualized, based on the Fund's most recent fiscal half year expenses. |
(b) | Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (181), divided by 365. |
(c) | Includes expenses of the CoreCommodity Management Cayman Commodity Fund Ltd. (wholly-owned subsidiary), exclusive of the subsidiary's management fee. |
(d) | Includes expenses of the Kotak Mauritius Portfolio (wholly-owned subsidiary). |
5| April 30, 2019
ALPS | CoreCommodity Management
CompleteCommodities®Strategy Fund
Management Commentary | April 30, 2019 (Unaudited) |
The six months ending April 30, 2019 produced a modestly negative return for commodities. The Bloomberg Commodity Index Total Return (“BCOMTR”), the Fund’s benchmark, ended lower by -1.98% for the period. The ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund (“I” Shares—“JCRIX” or the “Fund”) delivered a net negative return of -3.86% for the period (JCCSX was down -9.23% at MOP, JCRCX was down -5.28% at CDSC and JCRAX was down -3.93%). The Fund underperformed its benchmark, BCOMTR, by 188 basis points during the period.
From a macro perspective, the six month slice of time we are examining was quite volatile for many asset prices, including commodities, despite the relatively benign performance for the entire period. Negative price pressures across many commodities were felt during the latter stages of Q4 2018. Concerns mounted as global growth projections were revised downward. The US Federal Open Market Committee (“FOMC”) had been on a path to elevate US short term interest rates and to gradually reduce its large balance sheet of debt instruments. As a cross-section of asset prices began to accelerate to the downside in the wake of seasonal factors and growing negative sentiment, the FOMC pivoted by placing future rate hikes and security sales on hold. The significant shift in monetary stance taken by the FOMC at the end of the calendar year was seen as stimulative and directly supportive to credit markets while indirectly positive towards equities and commodities.
The Fund maintains a dynamic combination of commodity futures exposure and commodity equity (or producer) exposure. The composition of the fund changes from time to time in response to structural and value opportunities identified by the Fund’s Policy Committee. The Fund was fully invested at the end of April. Throughout the 4th quarter of 2018, the Fund held a historically low percentage in commodity equities, about 20%, versus about 80% in commodity futures. The disproportionate selling of commodity equities in Q4 into the end of the year eventually created a value opportunity for the Fund. Additionally, the more supportive monetary environment led by the FOMC described above encouraged us to increase our commodity equity exposure. Early into Q1 of 2019, we expanded our equity allocation to approximately 30% while reducing commodity futures exposure to about 70%. The Fund held a similar allocation mix at the end of April.
Industrial and precious metals were among the strongest performers during the six months ending in April 2019. Zinc and copper prices rebounded from losses suffered at the end of 2018. Zinc prices climbed by +17.6% while London Metal Exchange copper added +7.3%. Gold and platinum prices added similar percentage gains, gold up +5.5% and platinum up +5.6%. Nickel, one of the key components for producing stainless steel, added +4.9% in the period.
Nonetheless, it was not a complete “win” for metals in this six month period. Aluminum prices struggled, declining -9.7% at the end of April.
Energy prices swung significantly in both directions during the six month period. Crude oil and its derivative products, reformulated gasoline (RBOB) and heating oil, traded lower during most of Q4 2018. In early November a surprise relaxation of sanctions placed against Iranian crude oil by the Trump Administration resulted in waivers for existing customers to purchase Iranian crude. The Organization of Petroleum Exporting Countries (“OPEC”) had previously raised output to pre-emptively adjust for the removal of Iranian barrels from the market. Temporarily, supplies exceeded demand. OPEC convened in December 2018 to address the situation and cut production to counter-balance the unexpected Iranian flow. From low to high, crude oil prices fluctuated more than 25%. As the six month period came to a close, prices rebounded in response to OPEC’s production cuts and a more positive global growth outcome than initially expected for the first few weeks in 2019. Still, crude oil prices slipped modestly, down -3.5% for the period. Heating oil also fell by -5.3%. Conversely, RBOB rallied by +4.5% as the US transitioned out of the winter months, and the upcoming driving season came into focus.
Natural gas also had a volatile trading period in the six months ending in April 2019. After cash prices spiked to nearly $5/mmBTU in early November out of concern for supply levels and cold temperatures, prices for subsequent futures contracts fell significantly. The weather remained milder than feared and higher demand failed to materialize. For the period, natural gas prices fell by -18.0%.
Most agricultural prices suffered losses during the six months in focus. Orange juice and coffee were among the worst performers falling -31% and -23.5% respectively. Political and economic stress in Brazil and other South American countries led to currency declines. Producers boosted crop sales to take advantage of favorable foreign exchange rates, pressuring prices to the downside. Grain prices not only had to deal with South American currency issues, but they were also targeted in retaliation for specific tariffs directed by the US to China. Wheat fell -16.1%, corn prices faded by -6.3%, and soybeans slipped by -2.9%. Sugar and cotton prices also declined by -5.4% and -3.4% for the period, respectively.
Cocoa prices fought the general trend in agriculture, gaining +4.2%. Most cocoa comes from West African nations that were less impacted by the prevailing trade dispute. Protein prices, for cattle and lean hogs, ended slightly higher for the period. A deadly and devastating Asian swine flu took a toll on pig populations especially in China and some neighboring countries. In turn, cattle prices were bid up as well. Lean hogs were up +3.0% for the period and live cattle rose by just +1.8% for the six months ending in April. While the total price appreciation may seem insignificant, prices actually rallied by more than 40% in Q1 alone.
{The Fund’s top equity holdings at the end of April included Boliden AB (BOL SS) +30.3% (6 months ending Apr. 30, 2019), Fortescue Metals Group Ltd. (FMG AU) +90.8% (6 months ending Apr 30, 2019), Teck Resources Ltd. (TECK US) +15.2% (6 months ending Apr. 30, 2019), Yara International ASA (YAR NO) +4.9% (6 months ending
6| April 30, 2019
ALPS | CoreCommodity Management
CompleteCommodities®Strategy Fund
Management Commentary | April 30, 2019 (Unaudited) |
Apr. 30, 2019), Rio Tinto PLC (RIO US) +28.7% (6 months ending Apr. 30, 2019), Nutrien Ltd. (NTR US) +4.2% (6 months ending Apr. 30, 2019), South 32 Ltd. (S32 AU) -4.7% (6 months ending Apr. 30, 2019), Southern Copper Corp (SCCO US) +3.9% (6 months ending Apr. 30, 2019), Tyson Foods Inc. (TSN US) +26.8% (6 months ending Apr. 30, 2019), and AGCO Corp. (AGCO US) +26.9% (6 months ending Apr. 30, 2019).}
U.S. Treasury Inflation Protected Bonds (“TIPS”) and nominal US Treasuries are held by the fund to invest excess cash and as collateral for commodity futures-related investments held in the Fund’s Cayman Island subsidiary. Nominal yields on the benchmark 10 year note stood at 3.14% at the end of October 2018. Rates moved substantially lower, to 2.50%, by the end of April 2019. We continue to invest in TIPS and nominal US Treasuries with limited duration exposure. At the end of April, the Fund’s fixed income portfolio had a weighted average maturity of 0.7 years.
We believe that commodity fundamentals are poised to strengthen. On a relative basis, commodities appear inexpensive to other assets that have enjoyed long term appreciation. Consistent global growth trends seem to be intact for the near future despite some of the combative rhetoric revolving around global trade. That’s positive for commodity demand. The failure of many companies and sovereign countries to invest the necessary capital over many years to source, transport, and deliver vital commodities to market may take its toll in terms of future shortages and price spikes. Ultimately, profitable prices induce producers to engage in future projects. In our view, higher commodity prices are both necessary and likely.
Bob Hyman
Portfolio Manager
CoreCommodity Management, LLC
Past performance if not indicative of future results. “Bloomberg®” and “Bloomberg Commodity IndexSM” are service marks of Bloomberg L.P. (“Bloomberg”) as the case may be. Source for all Index data: Bloomberg L.P. Global. Commodity Sectors and individual commodities are represented by the respective Bloomberg Commodity Sub-Index. This document does not constitute an offer of any commodities, securities or investment advisory services. Any such offer may be made only by means of a disclosure document or similar materials which contain a description of material terms and risks. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. The economic statistics presented herein are subject to revision by the agencies that issue them. CoreCommodity Management assumes no obligation to provide this information in the future or to advise of changes in this information. Any indices and other financial benchmarks shown are provided for illustrative purposes only, are unmanaged, reflect reinvestment of income and do not reflect the impact of advisory fees. Investors cannot invest directly in an index. All investments are subject to risk.
7| April 30, 2019
ALPS | CoreCommodity Management
CompleteCommodities®Strategy Fund
Performance Update | April 30, 2019 (Unaudited) |
Performance of $10,000 Initial Investment(as of April 30, 2019)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception.Past performance does not guarantee future results.This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns(as of April 30, 2019)
6 Month | 1 Year | 3 Year | 5 Year | Since Inception^ | Total Expense Ratio | What You Pay* | |
Investor#(NAV) | -3.93% | -10.46% | 0.84% | -7.32% | -1.78% | 1.45% | 1.45% |
Class A (NAV) | -3.93% | -10.46% | 0.84% | -7.32% | -1.78% | 1.48% | 1.45% |
Class A (MOP) | -9.23% | -15.38% | -1.04% | -8.36% | -2.41% | ||
Class C (NAV) | -4.35% | -11.12% | 0.16% | -7.94% | -2.40% | 2.05% | 2.05% |
Class C (CDSC) | -5.28% | -11.98% | 0.16% | -7.94% | -2.40% | ||
Class I | -3.86% | -10.25% | 1.07% | -7.07% | -1.52% | 1.13% | 1.13% |
TR/CC CRB Total Return Index1 | -2.35% | -6.71% | 1.26% | -9.11% | -3.18% | ||
Bloomberg Commodity TR Index1 | -1.98% | -8.03% | -0.66% | -9.43% | -4.30% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $ 1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million. The Fund imposes a 2.00% redemption fee on shares held for less than 30 days.
Performance less than 1 year is cumulative.
8| April 30, 2019
ALPS | CoreCommodity Management
CompleteCommodities®Strategy Fund
Performance Update | April 30, 2019 (Unaudited) |
Performance shown for Class A shares prior to June 12, 2018 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class A shares.
1 | Thomson Reuters/CC CRB Total Return Index and the Bloomberg Commodity TR Index (formerly the Dow Jones-UBS Commodity Index) are unmanaged indices used as a measurement of change in commodity market conditions based on the performance of a basket of different commodities. Each index is composed of a different basket of commodities, a different weighting of the commodities in the basket, and a different re-balancing schedule. The indices are not actively managed and do not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
^ | Fund Inception date of June 29, 2010 for Investor Class and Classes C and I; Fund Inception date of June 12, 2018 for Class A. |
* | What You Pay reflects the Advisor’s decision to contractually limit expenses through February 28, 2020. Please see the prospectus for additional information. |
# | Prior to December 1, 2017, Investor Class was known as Class A. |
Investments in securities of MLPs involve risks that differ from an investment in common stock. MLPs are controlled by their general partners, which generally have conflicts of interest and limited fiduciary duties to the MLP, which may permit the general partner to favor its own interests over the MLPs. The benefit you are expected to derive from the Fund’s investment in MLPs depends largely on the MLPs being treated as partnerships for federal income tax purposes. As a partnership, an MLP has no federal income tax liability at the entity level. Therefore, treatment of one or more MLPs as a corporation for federal income tax purposes could affect the Fund’s ability to meet its investment objective and would reduce the amount of cash available to pay or distribute to you. Legislative, judicial, or administrative changes and differing interpretations, possibly on a retroactive basis, could negatively impact the value of an investment in MLPs and therefore the value of your investment in the Fund.
Investing in commodity-related securities involves risk and considerations not present when investing in more conventional securities. The Fund may be more susceptible to high volatility of commodity markets.
Derivatives generally are more sensitive to changes in economic or market conditions than other types of investments; this could result in losses that significantly exceed the Fund's original investment.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors, and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Asset Type Allocation(as a % of Net Assets)†
Common Stocks | 30.32% | ||
Commodity Futures Related | 69.29% | ||
Master Limited Partnerships | 0.29% | ||
Cash, Cash Equivalents, & Other Net Assets | 0.10% | ||
Total | 100.00% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents approximate values only. |
Industry Sector Allocation(as a % of Net Assets)^
^ | Notional Value of Derivative Exposure included |
9| April 30, 2019
ALPS | CoreCommodity Management
CompleteCommodities®Strategy Fund
Consolidated Statement of Investments | April 30, 2019 (Unaudited) |
Shares | Value (Note 2) | |||||||
COMMON STOCKS (30.33%) | ||||||||
Argentina (0.14%) | ||||||||
Adecoagro SA(a) | 50,405 | $ | 342,754 | |||||
YPF SA, Sponsored ADR | 42,204 | 571,020 | ||||||
913,774 | ||||||||
Australia (2.46%) | ||||||||
Alumina, Ltd. | 310,907 | 490,950 | ||||||
Ausdrill, Ltd. | 35,826 | 41,419 | ||||||
Beach Energy, Ltd. | 278,659 | 418,419 | ||||||
BHP Group, Ltd. | 5,330 | 140,526 | ||||||
BlueScope Steel, Ltd. | 135,151 | 1,281,445 | ||||||
Costa Group Holdings, Ltd. | 104,343 | 417,066 | ||||||
Fortescue Metals Group, Ltd. | 754,498 | 3,802,966 | ||||||
GrainCorp, Ltd., Class A | 85,256 | 540,911 | ||||||
Iluka Resources, Ltd. | 100,615 | 612,823 | ||||||
Incitec Pivot, Ltd. | 400,411 | 951,249 | ||||||
Independence Group NL | 176,712 | 555,596 | ||||||
Mineral Resources, Ltd. | 56,942 | 625,802 | ||||||
Nufarm, Ltd. | 147,504 | 526,154 | ||||||
Oil Search, Ltd. | 73,894 | 405,273 | ||||||
Orocobre, Ltd.(a) | 61,058 | 143,333 | ||||||
OZ Minerals, Ltd. | 133,936 | 940,405 | ||||||
Sandfire Resources NL | 78,872 | 391,430 | ||||||
Santos, Ltd. | 7,201 | 36,499 | ||||||
South32, Ltd. | 906,966 | 2,135,482 | ||||||
Washington H Soul Pattinson & Co.,Ltd. | 18,381 | 297,897 | ||||||
Whitehaven Coal, Ltd. | 200,968 | 595,024 | ||||||
Woodside Petroleum, Ltd. | 18,740 | 467,529 | ||||||
15,818,198 | ||||||||
Austria (0.15%) | ||||||||
OMV AG | 6,908 | 369,968 | ||||||
voestalpine AG | 18,655 | 599,038 | ||||||
969,006 | ||||||||
Brazil (0.55%) | ||||||||
BRF SA, ADR(a) | 141,840 | 1,110,607 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo, ADR | 112,065 | 1,340,298 | ||||||
Gerdau SA, Sponsored ADR | 147,971 | 529,736 | ||||||
Petroleo Brasileiro SA, Sponsored ADR | 16,177 | 246,376 | ||||||
Vale SA, Sponsored ADR | 23,249 | 297,122 | ||||||
3,524,139 | ||||||||
Canada (1.74%) | ||||||||
Cameco Corp. | 50,010 | 552,110 | ||||||
Canadian Solar, Inc.(a) | 19,387 | 387,352 | ||||||
Encana Corp. | 138,190 | 957,657 | ||||||
First Quantum Minerals, Ltd. | 4,500 | 47,529 | ||||||
Gran Tierra Energy, Inc.(a) | 85,099 | 203,387 | ||||||
Hudbay Minerals, Inc. | 239,100 | 1,591,977 | ||||||
Lundin Mining Corp. | 193,400 | 1,037,953 | ||||||
Nutrien, Ltd. | 40,325 | 2,184,809 | ||||||
Parex Resources, Inc.(a) | 56,800 | 967,512 |
Shares | Value (Note 2) | |||||||
Canada (continued) | ||||||||
Teck Resources, Ltd., Class B | 138,619 | $ | 3,278,340 | |||||
11,208,626 | ||||||||
Chile (0.37%) | ||||||||
Antofagasta PLC | 66,150 | 783,238 | ||||||
Geopark, Ltd.(a) | 12,075 | 189,578 | ||||||
Sociedad Quimica y Minera de Chile SA, Sponsored ADR | 39,077 | 1,392,704 | ||||||
2,365,520 | ||||||||
China (0.46%) | ||||||||
China Petroleum & Chemical Corp., ADR | 5,780 | 443,557 | ||||||
CNOOC, Ltd., Sponsored ADR | 8,783 | 1,595,695 | ||||||
Daqo New Energy Corp., ADR(a) | 5,342 | 197,921 | ||||||
JinkoSolar Holding Co., Ltd., ADR(a) | 8,708 | 169,458 | ||||||
PetroChina Co., Ltd., ADR | 8,809 | 557,522 | ||||||
2,964,153 | ||||||||
Colombia (0.02%) | ||||||||
Ecopetrol SA, Sponsored ADR | 5,846 | 108,093 | ||||||
Denmark (0.16%) | ||||||||
FLSmidth & Co. A/S | 9,925 | 498,017 | ||||||
Vestas Wind Systems A/S | 6,114 | 552,954 | ||||||
1,050,971 | ||||||||
Faroe Islands (0.12%) | ||||||||
Bakkafrost P/F | 14,649 | 752,193 | ||||||
Finland (0.12%) | ||||||||
Outokumpu OYJ | 147,998 | 564,215 | ||||||
Outotec OYJ(a) | 43,438 | 228,790 | ||||||
793,005 | ||||||||
France (0.13%) | ||||||||
TOTAL SA, Sponsored ADR | 14,467 | 805,378 | ||||||
Germany (0.61%) | ||||||||
K+S AG | 93,537 | 1,896,793 | ||||||
Nordex SE(a) | 10,156 | 164,486 | ||||||
Salzgitter AG | 10,429 | 343,546 | ||||||
thyssenkrupp AG | 23,362 | 328,453 | ||||||
Wacker Chemie AG | 13,602 | 1,190,579 | ||||||
3,923,857 | ||||||||
Great Britain (1.90%) | ||||||||
Anglo American PLC | 27,004 | 697,715 | ||||||
BP PLC, Sponsored ADR | 13,668 | 597,702 | ||||||
CNH Industrial N.V. | 80,916 | 881,984 | ||||||
Ensco Rowan PLC, Class A | 35,002 | 488,978 | ||||||
Kazakhmys PLC | 104,547 | 881,506 | ||||||
Noble Corp. PLC(a) | 46,618 | 122,605 | ||||||
Pentair PLC | 46,328 | 1,806,329 | ||||||
Premier Oil PLC(a) | 196,198 | 255,280 | ||||||
Rio Tinto PLC, Sponsored ADR | 43,928 | 2,587,359 |
10| April 30, 2019
ALPS | CoreCommodity Management
CompleteCommodities®Strategy Fund
Consolidated Statement of Investments | April 30, 2019 (Unaudited) |
Shares | Value (Note 2) | |||||||
Great Britain (continued) | ||||||||
Severn Trent PLC | 32,916 | $ | 873,902 | |||||
Subsea 7 SA | 68,014 | 864,025 | ||||||
TechnipFMC PLC | 28,201 | 693,463 | ||||||
Tullow Oil PLC | 22,057 | 64,802 | ||||||
United Utilities Group PLC | 129,470 | 1,399,255 | ||||||
12,214,905 | ||||||||
India (0.04%) | ||||||||
Vedanta, Ltd., ADR | 27,652 | 264,353 | ||||||
Israel (0.11%) | ||||||||
SolarEdge Technologies, Inc.(a) | 16,094 | 712,964 | ||||||
Tower Semiconductor, Ltd.(a) | 1 | 10 | ||||||
712,974 | ||||||||
Italy (0.06%) | ||||||||
Eni SpA, Sponsored ADR | 10,981 | 372,585 | ||||||
Japan (2.05%) | ||||||||
Daido Steel Co., Ltd. | 6,200 | 251,017 | ||||||
GS Yuasa Corp. | 21,600 | 431,825 | ||||||
Hitachi Metals, Ltd. | 48,800 | 561,181 | ||||||
Inpex Corp. | 145,133 | 1,408,401 | ||||||
Japan Petroleum Exploration Co., Ltd. | 19,200 | 416,593 | ||||||
JFE Holdings, Inc. | 29,300 | 501,068 | ||||||
Kobe Steel, Ltd. | 77,200 | 588,382 | ||||||
Kubota Corp. | 112,400 | 1,698,185 | ||||||
Kurita Water Industries, Ltd. | 23,216 | 601,476 | ||||||
Maruha Nichiro Corp. | 5,600 | 176,956 | ||||||
Maruichi Steel Tube, Ltd. | 16,300 | 449,221 | ||||||
Megmilk Snow Brand Co., Ltd. | 7,100 | 156,347 | ||||||
Mitsubishi Materials Corp. | 21,600 | 559,221 | ||||||
Morinaga Milk Industry Co., Ltd. | 6,500 | 213,856 | ||||||
Nippon Steel & Sumitomo Metal Corp. | 47,390 | 842,550 | ||||||
Nippon Suisan Kaisha, Ltd. | 129,600 | 903,984 | ||||||
OSAKA Titanium Technologies Co., Ltd. | 3,700 | 51,052 | ||||||
Pacific Metals Co., Ltd. | 2,900 | 63,287 | ||||||
Sakata Seed Corp. | 14,400 | 456,968 | ||||||
Sumitomo Forestry Co., Ltd. | 28,759 | 394,228 | ||||||
Sumitomo Metal Mining Co., Ltd. | 22,600 | 705,825 | ||||||
Toho Titanium Co., Ltd. | 17,800 | 148,606 | ||||||
Toho Zinc Co., Ltd. | 13,600 | 354,177 | ||||||
Tokyo Steel Manufacturing Co., Ltd. | 73,400 | 625,971 | ||||||
UACJ Corp. | 11,100 | 223,505 | ||||||
Yamato Kogyo Co., Ltd. | 14,400 | 397,504 | ||||||
13,181,386 | ||||||||
Luxembourg (0.26%) | ||||||||
APERAM SA | 14,100 | 433,319 | ||||||
ArcelorMittal | 29,620 | 646,083 | ||||||
Tenaris SA, ADR | 3,530 | 97,922 | ||||||
Ternium SA, Sponsored ADR | 19,564 | 482,253 | ||||||
1,659,577 |
Shares | Value (Note 2) | |||||||
Malaysia (0.08%) | ||||||||
Lynas Corp., Ltd.(a) | 361,944 | $ | 505,202 | |||||
Mexico (0.17%) | ||||||||
Grupo Mexico SAB de CV, Series B | 367,700 | 1,079,374 | ||||||
Netherlands (0.39%) | ||||||||
Core Laboratories N.V. | 5,200 | 329,628 | ||||||
Frank's International N.V.(a) | 41,457 | 242,109 | ||||||
Fugro N.V.(a) | 27,192 | 247,648 | ||||||
OCI N.V.(a) | 15,679 | 454,587 | ||||||
Royal Dutch Shell PLC, Class A, Sponsored ADR | 9,629 | 611,730 | ||||||
Royal Dutch Shell PLC, Class B | 2,551 | 81,982 | ||||||
SBM Offshore N.V. | 27,872 | 516,436 | ||||||
2,484,120 | ||||||||
Norway (1.77%) | ||||||||
Aker BP ASA | 25,870 | 853,093 | ||||||
Aker Solutions ASA(a)(b) | 35,369 | 181,489 | ||||||
DNO ASA | 266,580 | 604,694 | ||||||
Equinor ASA | 54,684 | 1,219,820 | ||||||
Leroy Seafood Group ASA | 113,901 | 823,023 | ||||||
Mowi ASA | 81,483 | 1,765,200 | ||||||
Norsk Hydro ASA | 323,218 | 1,384,666 | ||||||
Petroleum Geo-Services ASA(a) | 135,152 | 298,973 | ||||||
Salmar ASA | 16,124 | 732,616 | ||||||
TGS NOPEC Geophysical Co. ASA | 21,048 | 549,898 | ||||||
Yara International ASA | 66,269 | 2,988,747 | ||||||
11,402,219 | ||||||||
Peru (0.33%) | ||||||||
Southern Copper Corp. | 55,461 | 2,130,812 | ||||||
Russia (0.02%) | ||||||||
Evraz PLC | 18,181 | 148,792 | ||||||
Singapore (0.18%) | ||||||||
Wilmar International, Ltd. | 425,361 | 1,138,383 | ||||||
South Africa (0.24%) | ||||||||
Exxaro Resources, Ltd. | 41,150 | 469,838 | ||||||
Kumba Iron Ore, Ltd. | 15,133 | 453,461 | ||||||
Sasol, Ltd. | 18,539 | 614,930 | ||||||
1,538,229 | ||||||||
South Korea (0.06%) | ||||||||
POSCO, Sponsored ADR | 6,691 | 369,142 | ||||||
Spain (0.18%) | ||||||||
Acerinox SA | 44,206 | 459,819 | ||||||
Repsol SA | 21,441 | 363,850 | ||||||
Siemens Gamesa Renewable Energy SA | 19,230 | 344,878 | ||||||
1,168,547 |
11| April 30, 2019
ALPS | CoreCommodity Management
CompleteCommodities®Strategy Fund
Consolidated Statement of Investments | April 30, 2019 (Unaudited) |
Shares | Value (Note 2) | |||||||
Sweden (1.07%) | ||||||||
Boliden AB | 141,262 | $ | 4,194,509 | |||||
Epiroc AB(a) | 59,249 | 612,631 | ||||||
Holmen AB, B Shares | 19,366 | 407,216 | ||||||
Lundin Petroleum AB | 12,829 | 419,837 | ||||||
SSAB AB, A Shares | 190,388 | 718,279 | ||||||
Svenska Cellulosa AB SCA, Class B | 59,859 | 522,001 | ||||||
6,874,473 | ||||||||
Switzerland (0.14%) | ||||||||
Ferrexpo PLC | 135,944 | 367,483 | ||||||
Glencore PLC | 140,100 | 556,019 | ||||||
923,502 | ||||||||
United States (14.25%) | ||||||||
AGCO Corp. | 27,270 | 1,930,171 | ||||||
AK Steel Holding Corp.(a) | 421,737 | 1,020,604 | ||||||
Alcoa Corp.(a) | 48,563 | 1,295,661 | ||||||
Allegheny Technologies, Inc.(a) | 2,903 | 72,343 | ||||||
American States Water Co. | 7,091 | 504,666 | ||||||
American Water Works Co., Inc. | 17,487 | 1,891,919 | ||||||
Anadarko Petroleum Corp. | 14,106 | 1,027,622 | ||||||
Andersons, Inc. | 13,546 | 442,954 | ||||||
Antero Resources Corp.(a) | 81,284 | 589,309 | ||||||
Apache Corp. | 39,030 | 1,284,477 | ||||||
Aqua America, Inc. | 30,332 | 1,184,768 | ||||||
Archer-Daniels-Midland Co. | 27,202 | 1,213,209 | ||||||
Archrock, Inc. | 15,155 | 153,217 | ||||||
Baker Hughes a GE Co. | 13,729 | 329,771 | ||||||
Bonanza Creek Energy, Inc.(a) | 7,179 | 172,799 | ||||||
BP Prudhoe Bay Royalty Trust | 14,369 | 292,409 | ||||||
Bunge, Ltd. | 31,144 | 1,632,257 | ||||||
C&J Energy Services, Inc.(a) | 13,273 | 186,486 | ||||||
Cabot Oil & Gas Corp. | 4,882 | 126,395 | ||||||
California Resources Corp.(a) | 8,428 | 177,662 | ||||||
California Water Service Group | 8,661 | 436,428 | ||||||
Callon Petroleum Co.(a) | 113,836 | 854,908 | ||||||
Cal-Maine Foods, Inc. | 27,540 | 1,132,169 | ||||||
Carpenter Technology Corp. | 11,547 | 573,539 | ||||||
Carrizo Oil & Gas, Inc.(a) | 128,166 | 1,643,088 | ||||||
Centennial Resource Development,Inc., Class A(a) | 45,282 | 476,819 | ||||||
Century Aluminum Co.(a) | 121,103 | 1,018,476 | ||||||
CF Industries Holdings, Inc. | 39,570 | 1,771,945 | ||||||
Chesapeake Energy Corp.(a) | 571,785 | 1,663,894 | ||||||
Chevron Corp. | 6,715 | 806,203 | ||||||
Cimarex Energy Co. | 10,286 | 706,237 | ||||||
Cliffs Natural Resources, Inc. | 117,744 | 1,176,263 | ||||||
CNX Resources Corp.(a) | 13,252 | 118,738 | ||||||
Compass Minerals International, Inc. | 20,574 | 1,180,742 | ||||||
Comstock Resources, Inc.(a) | 12,264 | 74,810 | ||||||
Concho Resources, Inc. | 4,641 | 535,479 | ||||||
ConocoPhillips | 12,251 | 773,283 | ||||||
Consol Energy Inc(a) | 11,728 | 397,579 | ||||||
Continental Resources, Inc.(a) | 31,482 | 1,447,857 | ||||||
Darling Ingredients, Inc.(a) | 78,920 | 1,721,245 | ||||||
Deere & Co. | 10,428 | 1,727,190 |
Shares | Value (Note 2) | |||||||
United States (continued) | ||||||||
Devon Energy Corp. | 26,377 | $ | 847,757 | |||||
Diamond Offshore Drilling, Inc.(a) | 28,341 | 275,191 | ||||||
Diamondback Energy, Inc. | 7,387 | 785,903 | ||||||
Energy Recovery, Inc.(a) | 41,392 | 402,744 | ||||||
Enphase Energy, Inc.(a) | 79,510 | 798,280 | ||||||
EOG Resources, Inc. | 11,730 | 1,126,667 | ||||||
EQT Corp. | 7,871 | 160,962 | ||||||
Evoqua Water Technologies Corp.(a) | 30,618 | 417,017 | ||||||
Exterran Corp.(a) | 7,059 | 100,379 | ||||||
Extraction Oil & Gas, Inc.(a) | 206,363 | 969,906 | ||||||
Exxon Mobil Corp. | 4,908 | 394,014 | ||||||
FMC Corp. | 15,542 | 1,228,751 | ||||||
Forum Energy Technologies, Inc.(a) | 13,828 | 82,691 | ||||||
Freeport-McMoRan, Inc. | 123,927 | 1,525,541 | ||||||
Fresh Del Monte Produce, Inc. | 10,904 | 321,777 | ||||||
FTS International, Inc.(a) | 24,872 | 257,425 | ||||||
Green Plains, Inc. | 29,683 | 515,594 | ||||||
Gulfport Energy Corp.(a) | 123,039 | 805,905 | ||||||
Halliburton Co. | 8,067 | 228,538 | ||||||
Harsco Corp.(a) | 20,191 | 457,124 | ||||||
Helix Energy Solutions Group, Inc.(a) | 35,512 | 277,704 | ||||||
Helmerich & Payne, Inc. | 4,326 | 253,158 | ||||||
Hess Corp. | 16,810 | 1,077,857 | ||||||
Hi-Crush Partners LP | 35,193 | 124,583 | ||||||
HighPoint Resources Corp.(a) | 175,724 | 481,484 | ||||||
HollyFrontier Corp. | 22,080 | 1,053,878 | ||||||
Hormel Foods Corp. | 28,462 | 1,136,772 | ||||||
Ingredion, Inc. | 15,572 | 1,475,447 | ||||||
Jagged Peak Energy, Inc.(a) | 30,273 | 319,986 | ||||||
Keane Group, Inc.(a) | 21,950 | 230,256 | ||||||
Kinder Morgan, Inc. | 5,763 | 114,511 | ||||||
Kosmos Energy, Ltd. | 112,562 | 753,040 | ||||||
Laredo Petroleum, Inc.(a) | 223,890 | 676,148 | ||||||
Livent Corp.(a) | 9,553 | 102,981 | ||||||
Marathon Oil Corp. | 16,915 | 288,232 | ||||||
Marathon Petroleum Corp. | 24,420 | 1,486,445 | ||||||
Matador Resources Co.(a) | 43,675 | 859,961 | ||||||
McDermott International, Inc.(a) | 19,167 | 155,061 | ||||||
Mosaic Co. | 22,356 | 583,715 | ||||||
Murphy Oil Corp. | 11,090 | 302,092 | ||||||
Nabors Industries, Ltd. | 154,032 | 539,112 | ||||||
National Oilwell Varco, Inc. | 3,499 | 91,464 | ||||||
Noble Energy, Inc. | 28,251 | 764,472 | ||||||
Northern Oil and Gas, Inc.(a) | 129,966 | 344,410 | ||||||
Oasis Petroleum, Inc.(a) | 190,816 | 1,163,978 | ||||||
Occidental Petroleum Corp. | 9,455 | 556,710 | ||||||
Oceaneering International, Inc.(a) | 38,173 | 732,922 | ||||||
Oil States International, Inc.(a) | 20,908 | 403,943 | ||||||
Parsley Energy, Inc., Class A(a) | 27,066 | 540,237 | ||||||
Patterson-UTI Energy, Inc. | 40,555 | 551,142 | ||||||
PDC Energy, Inc.(a) | 20,568 | 894,502 | ||||||
Phillips 66 | 8,398 | 791,679 | ||||||
Pilgrim's Pride Corp.(a) | 68,429 | 1,841,424 | ||||||
Pioneer Natural Resources Co. | 3,059 | 509,201 | ||||||
PotlatchDeltic Corp. REIT | 20,325 | 785,765 | ||||||
ProPetro Holding Corp.(a) | 16,783 | 371,408 | ||||||
QEP Resources, Inc.(a) | 56,900 | 427,888 |
12| April 30, 2019
ALPS | CoreCommodity Management
CompleteCommodities®Strategy Fund
Consolidated Statement of Investments | April 30, 2019 (Unaudited) |
Shares | Value (Note 2) | |||||||
United States (continued) | ||||||||
Range Resources Corp. | 19,049 | $ | 172,203 | |||||
Rayonier, Inc. REIT | 30,563 | 971,598 | ||||||
Renewable Energy Group, Inc.(a) | 17,030 | 410,764 | ||||||
Rexnord Corp.(a) | 48,783 | 1,395,194 | ||||||
Ring Energy, Inc.(a) | 27,902 | 144,532 | ||||||
RPC, Inc. | 70,765 | 728,172 | ||||||
Sanderson Farms, Inc. | 6,358 | 964,064 | ||||||
Schlumberger, Ltd. | 8,909 | 380,236 | ||||||
Schnitzer Steel Industries, Inc., Class A | 18,302 | 434,123 | ||||||
Select Energy Services, Inc.(a) | 14,537 | 167,466 | ||||||
SJW Group | 7,589 | 470,973 | ||||||
SM Energy Co. | 37,331 | 594,683 | ||||||
Solaris Oilfield Infrastructure, Inc. | 12,185 | 207,023 | ||||||
Southwestern Energy Co.(a) | 26,093 | 103,067 | ||||||
SRC Energy, Inc.(a) | 155,442 | 955,968 | ||||||
Steel Dynamics, Inc. | 34,114 | 1,080,732 | ||||||
SunCoke Energy, Inc.(a) | 10,819 | 93,152 | ||||||
SunPower Corp.(a) | 10,322 | 74,525 | ||||||
Sunrun, Inc.(a) | 44,691 | 679,750 | ||||||
Superior Energy Services, Inc.(a) | 76,267 | 273,799 | ||||||
Tellurian, Inc.(a) | 65,751 | 624,635 | ||||||
TPI Composites, Inc.(a) | 13,921 | 430,855 | ||||||
Transocean, Ltd.(a) | 19,984 | 157,074 | ||||||
Tyson Foods, Inc., Class A | 26,580 | 1,993,766 | ||||||
Unit Corp.(a) | 29,449 | 399,328 | ||||||
United States Steel Corp. | 81,374 | 1,269,434 | ||||||
US Silica Holdings, Inc. | 14,303 | 226,273 | ||||||
Valero Energy Corp. | 15,840 | 1,436,054 | ||||||
W&T Offshore, Inc.(a) | 148,846 | 949,637 | ||||||
Walter Energy, Inc.(a) | 68,768 | 103 | ||||||
Warrior Met Coal, Inc. | 54,616 | 1,693,096 | ||||||
Whiting Petroleum Corp.(a) | 29,386 | 804,883 | ||||||
Williams Cos., Inc. | 1,855 | 52,552 | ||||||
WPX Energy, Inc.(a) | 55,137 | 765,853 | ||||||
91,636,892 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $194,393,735) | 195,002,380 | |||||||
MASTER LIMITED PARTNERSHIPS (0.29%) | ||||||||
United States (0.29%) | ||||||||
Alliance Resource Partners LP | 22,642 | 436,311 | ||||||
Buckeye Partners LP | 977 | 32,690 | ||||||
Energy Transfer LP | 4,974 | 75,207 | ||||||
Enterprise Products Partners LP | 10,676 | 305,654 | ||||||
Magellan Midstream Partners LP | 2,054 | 127,369 | ||||||
MPLX LP | 1,555 | 50,164 | ||||||
Plains All American Pipeline LP | 3,090 | 71,534 | ||||||
Viper Energy Partners LP | 23,630 | 794,440 | ||||||
1,893,369 | ||||||||
TOTAL MASTER LIMITED PARTNERSHIPS | ||||||||
(Cost $2,221,084) | 1,893,369 |
Principal Amount | Value (Note 2) | |||||||
GOVERNMENT BONDS (64.08%) | ||||||||
U.S. Treasury Bonds (64.08%) | ||||||||
United States Treasury InflationIndexed Bonds, 0.125%,4/15/20(c) | $ | 192,646,125 | $ | 191,675,370 | ||||
United States Treasury Notes | ||||||||
0.875%, 5/15/19(c) | $ | 11,500,000 | $ | 11,493,225 | ||||
1.625%, 7/31/19(c) | 88,400,000 | 88,219,198 | ||||||
1.000%, 11/30/19 | 14,900,000 | 14,777,191 | ||||||
1.375%, 1/15/20 | 40,000,000 | 39,709,375 | ||||||
1.250%, 2/29/20 | 36,500,000 | 36,153,535 | ||||||
2.375%, 4/30/20 | 30,000,000 | 29,993,555 | ||||||
412,021,449 | ||||||||
TOTAL GOVERNMENT BONDS | ||||||||
(Cost $412,034,655) | 412,021,449 |
Value (Note 2) | ||||
TOTAL INVESTMENTS (94.70%) | ||||
(Cost $608,649,474) | $ | 608,917,198 | ||
Other Assets In Excess Of Liabilities (5.30%) | 34,112,040 | |||
NET ASSETS - 100.00% | $ | 643,029,238 |
(a) | Non-Income Producing Security. |
(b) | Securities were purchased pursuant to Regulation S under the Securities Act of 1933, which exempts securities offered and sold outside of the United States from registration. Such securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Fund's Board of Trustees. As of April 30, 2019 the aggregate market value of those securities was $181,489 representing 0.028% of net assets. |
(c) | Security, or portion of security, is being held as collateral for total return swap contracts and futures contracts aggregating a total market value of $18,406,272. |
For Fund compliance purposes, the Fund's industry and geographical classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine sub-classifications for reporting ease. Industries and regions are shown as a percent of net assets.
See Notes to Financial Statements.
13| April 30, 2019
ALPS | CoreCommodity Management
CompleteCommodities®Strategy Fund
Consolidated Statement of Investments | April 30, 2019 (Unaudited) |
FUTURES CONTRACTS
Description | Counterparty | Position | Contracts | Expiration Date | Notional Amount/Fair Value (Note 2) | Unrealized Appreciation | ||||||||||
Coffee 'C' Future | Morgan Stanley | Long | 371 | 07/19/19 | $ | 12,959,494 | $ | 190,833 | ||||||||
Coffee Robusta Future | Morgan Stanley | Short | (559) | 07/25/19 | (7,865,130 | ) | 33,267 | |||||||||
Copper Future | Morgan Stanley | Short | (439) | 07/29/19 | (31,871,400 | ) | 287,222 | |||||||||
LME Copper Future | Morgan Stanley | Long | 209 | 05/13/19 | 33,506,619 | 72,534 | ||||||||||
LME Zinc Future | Morgan Stanley | Long | 12 | 05/13/19 | 874,500 | 4,390 | ||||||||||
Low Sulphur Gasoil G Future | Morgan Stanley | Long | 192 | 05/10/19 | 12,249,600 | 346,499 | ||||||||||
Natural Gas Future | Morgan Stanley | Short | (381) | 06/26/19 | (9,970,770 | ) | 600,824 | |||||||||
NY Harbour ULSD Future | Morgan Stanley | Short | (142) | 05/31/19 | (12,392,596 | ) | 139,426 | |||||||||
Platinum Future | Morgan Stanley | Long | 225 | 07/29/19 | 10,031,625 | 296,397 | ||||||||||
WTI Crude Future | Morgan Stanley | Short | (841) | 05/21/19 | (53,748,310 | ) | 110,773 | |||||||||
$ | (46,226,368 | ) | $ | 2,082,165 |
Description | Counterparty | Position | Contracts | Expiration Date | Notional Amount/Fair Value (Note 2) | Unrealized Depreciation | ||||||||||
Brent Crude Future | Morgan Stanley | Long | 895 | 05/31/19 | $ | 64,493,700 | $ | (1,071,842 | ) | |||||||
Gold 100 Oz Future | Morgan Stanley | Long | 100 | 06/26/19 | 12,857,000 | (285,350 | ) | |||||||||
Hard Red Winter Wheat Future | Morgan Stanley | Long | 70 | 07/12/19 | 1,379,000 | (61,423 | ) | |||||||||
LME Nickel Future | Morgan Stanley | Long | 52 | 05/13/19 | 3,790,020 | (243,357 | ) | |||||||||
Natural Gas Future | Morgan Stanley | Long | 326 | 05/29/19 | 8,394,500 | (611,089 | ) | |||||||||
Silver Future | Morgan Stanley | Long | 217 | 07/29/19 | 16,257,640 | (61,475 | ) | |||||||||
Soybean Future | Morgan Stanley | Long | 345 | 07/12/19 | 14,731,500 | (319,977 | ) | |||||||||
Soybean Meal Future | Morgan Stanley | Long | 130 | 07/12/19 | 3,901,300 | (49,901 | ) | |||||||||
Sugar #11 | Morgan Stanley | Long | 240 | 06/28/19 | 3,316,992 | (82,898 | ) | |||||||||
Wheat Future | Morgan Stanley | Long | 64 | 07/12/19 | 1,372,000 | (32,183 | ) | |||||||||
$ | 130,493,652 | $ | (2,819,495 | ) |
TOTAL RETURN SWAP CONTRACTS(a)
Swap Counterparty | Reference Obligation | Notional Amount | Floating Rate Paid by Fund | Termination Date | Value | Unrealized Appreciation | ||||||||||||
Bank of America -Merrill Lynch | CRB 3m Fwd TR Index ** | $ | 116,660,540 | USB3MTA + 30 bps* | 6/28/2019 | $ | 116,660,904 | $ | 364 | |||||||||
Societe Generale | CRB 3m Fwd TR Index ** | 61,816,039 | USB3MTA + 28 bps* | 11/29/2019 | 61,816,042 | 3 | ||||||||||||
UBS | CRB 3m Fwd TR Index ** | 76,217,526 | USB3MTA + 25 bps* | 11/29/2019 | 76,217,529 | 3 | ||||||||||||
Citigroup | CRB 3m Fwd TR Index ** | 106,639,441 | USB3MTA + 24 bps* | 9/30/2019 | 106,639,443 | 2 | ||||||||||||
$ | 361,333,546 | $ | 361,333,918 | $ | 372 |
(a) | For long positions in the total return swap, the Fund receives payments based on any positive return of the Reference Obligation less the rate paid by the Fund. The Fund makes payments on any negative return of such Reference Obligations plus the rate paid by the fund. For short positions in the total return swap, the Fund makes payments based on any positive return of the Reference Obligation less the rate paid by the Fund. The Fund receives payments on any negative return of such Reference Obligations plus the rate paid by the Fund. |
* | United States Auction Results 3 Month Treasury Bill High Discount. Total return swap resets monthly. |
** | CRB - Commodity Research Bureau |
See Notes to Financial Statements.
14| April 30, 2019
ALPS | CoreCommodity Management
CompleteCommodities®Strategy Fund
Consolidated Statement of Assets and Liabilities | April 30, 2019 (Unaudited) |
ASSETS | ||||
Investments, at value | $ | 608,917,198 | ||
Cash | 35,340,247 | |||
Foreign currency, at value (Cost $29,909) | 29,991 | |||
Unrealized appreciation on total return swap contracts | 372 | |||
Receivable for investments sold | 18,201 | |||
Receivable for shares sold | 626,358 | |||
Receivable due from broker for total return swap contracts | 628,147 | |||
Dividends and interest receivable | 1,085,217 | |||
Prepaid expenses and other assets | 22,870 | |||
Total Assets | 646,668,601 | |||
LIABILITIES | ||||
Payable for investments purchased | 18,246 | |||
Payable for variation margin on futures contracts | 45,333 | |||
Payable due to broker for futures contracts | 154,855 | |||
Payable for shares redeemed | 2,650,571 | |||
Payable for foreign capital gains tax | 140 | |||
Investment advisory fees payable | 456,038 | |||
Administration and transfer agency fees payable | 196,106 | |||
Distribution and services fees payable | 31,368 | |||
Trustees' fees and expenses payable | 84 | |||
Professional fees payable | 30,441 | |||
Accrued expenses and other liabilities | 56,181 | |||
Total Liabilities | 3,639,363 | |||
NET ASSETS | $ | 643,029,238 | ||
NET ASSETS CONSIST OF | ||||
Paid-in capital | $ | 735,193,582 | ||
Total distributable earnings | (92,164,344 | ) | ||
NET ASSETS | $ | 643,029,238 | ||
INVESTMENTS, AT COST | $ | 608,649,474 | ||
PRICING OF SHARES | ||||
Investor Class: | ||||
Net Asset Value, offering and redemption price per share | $ | 7.03 | ||
Net Assets | $ | 43,180,409 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 6,146,380 | |||
Class A: | ||||
Net Asset Value, offering and redemption price per share | $ | 7.03 | ||
Net Assets | $ | 425,166 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 60,511 | |||
Maximum offering price per share ((NAV/0.9450), based on maximum sales charge of 5.50% of the offering price) | $ | 7.44 | ||
Class C: | ||||
Net Asset Value, offering and redemption price per share(a) | $ | 6.70 | ||
Net Assets | $ | 8,886,570 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 1,325,695 | |||
Class I: | ||||
Net Asset Value, offering and redemption price per share | $ | 7.07 | ||
Net Assets | $ | 590,537,093 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 83,519,186 |
(a) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. For a description of a possible sales charge, please see the Fund's Prospectus. |
See Notes to Financial Statements.
15| April 30, 2019
ALPS | CoreCommodity Management
CompleteCommodities®Strategy Fund
Consolidated Statement of Operations | For the Six Months Ended April 30, 2019 (Unaudited) |
INVESTMENT INCOME | ||||
Dividends | $ | 2,068,886 | ||
Foreign taxes withheld on dividends | (95,239 | ) | ||
Interest and other income, net of premium amortization and accretion of discount | 2,838,616 | |||
Total Investment Income | 4,812,263 | |||
EXPENSES | ||||
Investment advisory fees | 2,674,658 | |||
Investment advisory fees - subsidiary (Note 8) | 489,260 | |||
Administrative fees | 361,526 | |||
Transfer agency fees | 322,141 | |||
Distribution and service fees | ||||
Investor Class | 74,556 | |||
Class A | 480 | |||
Class C | 43,676 | |||
Professional fees | 28,679 | |||
Reports to shareholders and printing fees | 34,246 | |||
State registration fees | 44,116 | |||
Insurance fees | 2,670 | |||
Custody fees | 30,448 | |||
Trustees' fees and expenses | 13,933 | |||
Repayment of previously waived fees | ||||
Class A | 10 | |||
Class C | 193 | |||
Miscellaneous expenses | 13,004 | |||
Total Expenses | 4,133,596 | |||
Less fees waived/reimbursed by investment advisor (Note 8) | ||||
Waiver of investment advisory fees - subsidiary | (489,260 | ) | ||
Net Expenses | 3,644,336 | |||
Net Investment Income | 1,167,927 | |||
Net realized loss on investments | (8,744,971 | ) | ||
Net realized loss on futures contracts | (11,055,385 | ) | ||
Net realized loss on total return swap contracts | (20,396,816 | ) | ||
Net realized gain on foreign currency transactions | 32,748 | |||
Net Realized Loss | (40,164,424 | ) | ||
Net change in unrealized appreciation on investments | 11,042,507 | |||
Net change in unrealized depreciation on futures contracts | (3,269,201 | ) | ||
Net change in unrealized depreciation on total return swap contracts | (698 | ) | ||
Net change in unrealized appreciation on translation of assets and liabilities denominated in foreign currencies | 9,197 | |||
Net Change in Unrealized Appreciation | 7,781,805 | |||
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS | (32,382,619 | ) | ||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (31,214,692 | ) |
See Notes to Financial Statements.
16| April 30, 2019
ALPS | CoreCommodity Management
CompleteCommodities®Strategy Fund
Consolidated Statements of Changes in Net Assets
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 1,167,927 | $ | 5,467,922 | ||||
Net realized gain/(loss) | (40,164,424 | ) | 13,492,839 | |||||
Net change in unrealized appreciation/(depreciation) | 7,781,805 | (19,616,650 | ) | |||||
Net Decrease in Net Assets Resulting from Operations | (31,214,692 | ) | (655,889 | ) | ||||
TOTAL DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class(a) | (1,405,470 | ) | (1,159,806 | ) | ||||
Class A(b) | (5,288 | ) | – | |||||
Class C | (261,410 | ) | (187,271 | ) | ||||
Class I | (17,784,130 | ) | (11,870,472 | ) | ||||
Net Decrease in Net Assets from Distributions | (19,456,298 | ) | (13,217,549 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class(a) | 10,120,361 | 18,832,619 | ||||||
Class A(b) | 239,272 | 195,323 | ||||||
Class C | 1,912,903 | 4,136,291 | ||||||
Class I | 163,730,977 | 322,824,182 | ||||||
Dividends reinvested | ||||||||
Investor Class(a) | 1,325,215 | 1,099,833 | ||||||
Class A(b) | 5,288 | – | ||||||
Class C | 180,839 | 111,922 | ||||||
Class I | 14,260,972 | 10,390,433 | ||||||
Shares redeemed, net of redemption fees | ||||||||
Investor Class(a) | (13,263,761 | ) | (18,297,033 | ) | ||||
Class A(b) | (7 | ) | – | |||||
Class C | (2,032,155 | ) | (2,104,665 | ) | ||||
Class I | (188,402,915 | ) | (155,888,526 | ) | ||||
Net Increase/(Decrease) in Net Assets Derived from Beneficial Interest Transactions | (11,923,011 | ) | 181,300,379 | |||||
Net increase/(decrease) in net assets | (62,594,001 | ) | 167,426,941 | |||||
NET ASSETS | ||||||||
Beginning of period | 705,623,239 | 538,196,298 | ||||||
End of period | $ | 643,029,238 | $ | 705,623,239 |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Class A commenced operations on June 12, 2018. |
See Notes to Financial Statements.
17| April 30, 2019
ALPS | CoreCommodity Management
CompleteCommodities®Strategy Fund – Investor Class
Consolidated Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(b) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period(c) | $ | 7.54 | $ | 7.64 | $ | 7.29 | $ | 7.15 | $ | 9.56 | $ | 10.87 | $ | 10.40 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income/(loss)(d) | 0.00 | (e)(f) | 0.05 | (0.01 | )(f) | (0.03 | )(f) | (0.09 | )(f) | 0.00 | (e)(f) | (0.06 | )(f) | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.30 | ) | 0.04 | 0.36 | 0.17 | (2.32 | ) | (1.31 | ) | 0.53 | ||||||||||||||||||
Total from investment operations | (0.30 | ) | 0.09 | 0.35 | 0.14 | (2.41 | ) | (1.31 | ) | 0.47 | ||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.21 | ) | (0.19 | ) | (0.00 | )(e) | – | – | – | – | ||||||||||||||||||
Total distributions | (0.21 | ) | (0.19 | ) | (0.00 | )(e) | – | – | – | – | ||||||||||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (e) | 0.00 | (e) | 0.00 | (e) | 0.00 | (e) | 0.00 | (e) | 0.00 | (e) | 0.00 | (e) | ||||||||||||||
Net increase/(decrease) in net asset value | (0.51 | ) | (0.10 | ) | 0.35 | 0.14 | (2.41 | ) | (1.31 | ) | 0.47 | |||||||||||||||||
Net asset value, end of period | $ | 7.03 | $ | 7.54 | $ | 7.64 | $ | 7.29 | $ | 7.15 | $ | 9.56 | $ | 10.87 | ||||||||||||||
TOTAL RETURN(g) | (3.93 | )% | 1.23 | % | 4.85 | % | 1.96 | % | (25.21 | )% | (12.05 | )% | 4.52 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 43,180 | $ | 48,728 | $ | 47,845 | $ | 29,468 | $ | 30,085 | $ | 39,971 | $ | 112,562 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.37 | %(h)(i) | 1.40 | %(i) | 1.38 | % | 1.41 | % | 1.47 | % | 1.46 | %(h) | 1.50 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.37 | %(h) | 1.40 | % | 1.38 | % | 1.41 | % | 1.45 | % | 1.45 | %(h) | 1.45 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | 0.14 | %(h) | 0.66 | % | (0.10 | )% | (0.48 | )% | (1.12 | )% | 0.09 | %(h) | (0.60 | )% | ||||||||||||||
Portfolio turnover rate(j) | 55 | % | 42 | % | 66 | % | 50 | % | 52 | % | 12 | % | 28 | % |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(c) | Per share amounts and ratios to average net assets include income and expenses of the CoreCommodity Management Cayman Commodity Fund Ltd. (wholly-owned subsidiary). |
(d) | Calculated using the average shares method. |
(e) | Less than $0.005 or ($0.005) per share. |
(f) | The per share amount does not correspond to activity reflected in the Statement of Operations due to class specific expenses during the period. |
(g) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(h) | Annualized. |
(i) | The ratio of operating expenses excluding fee waiver/reimbursements to average net assets is calculated excluding the waived Subsidiary management fee (see Note 8 for additional detail). The ratio inclusive of that fee would be 1.53% and 1.56% for the six months ended April 30, 2019 and year ended October 31, 2018, respectively. |
(j) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
18| April 30, 2019
ALPS | CoreCommodity Management
CompleteCommodities®Strategy Fund – Class A
Consolidated Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period June 12, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period(a) | $ | 7.54 | $ | 8.16 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(b) | 0.01 | (0.00 | )(c) | |||||
Net realized and unrealized loss | (0.31 | ) | (0.62 | ) | ||||
Total from investment operations | (0.30 | ) | (0.62 | ) | ||||
DISTRIBUTIONS: | ||||||||
From net investment income | (0.21 | ) | – | |||||
Total distributions | (0.21 | ) | – | |||||
Net (decrease) in net asset value | (0.51 | ) | (0.62 | ) | ||||
Net asset value, end of period | $ | 7.03 | $ | 7.54 | ||||
TOTAL RETURN(d) | (3.93 | )% | (7.60 | )% | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 425 | $ | 191 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.41 | %(e)(f) | 1.48 | %(e)(f) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.41 | %(e) | 1.45 | %(e) | ||||
Ratio of net investment income/(loss) to average net assets | 0.27 | %(e) | (0.10 | %)(e) | ||||
Portfolio turnover rate(g) | 55 | % | 42 | % |
(a) | Per share amounts and ratios to average net assets include income and expenses of the CoreCommodity Management Cayman Commodity Fund Ltd. (wholly-owned subsidiary). |
(b) | Calculated using the average shares method. |
(c) | Less than $0.005 or ($0.005) per share. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(e) | Annualized. |
(f) | The ratio of operating expenses excluding fee waiver/reimbursements to average net assets is calculated excluding the waived Subsidiary management fee (see Note 8 for additional detail). The ratio inclusive of that fee would be 1.56% and 1.64% for the six months ended April 30, 2019 and year ended October 31, 2018, respectively. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
19| April 30, 2019
ALPS | CoreCommodity Management
CompleteCommodities® Strategy Fund – Class C
Consolidated Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(a) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period(b) | $ | 7.22 | $ | 7.36 | $ | 7.07 | $ | 6.98 | $ | 9.39 | $ | 10.71 | $ | 10.31 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment loss(c) | (0.02 | )(d) | (0.00 | )(d)(e) | (0.06 | )(d) | (0.08 | )(d) | (0.14 | )(d) | (0.04 | )(d) | (0.12 | )(d) | ||||||||||||||
Net realized and unrealized gain/(loss) | (0.30 | ) | 0.04 | 0.35 | 0.17 | (2.27 | ) | (1.28 | ) | 0.52 | ||||||||||||||||||
Total from investment operations | (0.32 | ) | 0.04 | 0.29 | 0.09 | (2.41 | ) | (1.32 | ) | 0.40 | ||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.20 | ) | (0.18 | ) | – | – | – | – | – | |||||||||||||||||||
Total distributions | (0.20 | ) | (0.18 | ) | – | – | – | – | – | |||||||||||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (e) | – | – | – | 0.00 | (e) | 0.00 | (e) | 0.00 | (e) | |||||||||||||||||
Net increase/(decrease) in net asset value | (0.52 | ) | (0.14 | ) | 0.29 | 0.09 | (2.41 | ) | (1.32 | ) | 0.40 | |||||||||||||||||
Net asset value, end of period | $ | 6.70 | $ | 7.22 | $ | 7.36 | $ | 7.07 | $ | 6.98 | $ | 9.39 | $ | 10.71 | ||||||||||||||
TOTAL RETURN(f) | (4.35 | )% | 0.62 | % | 4.10 | % | 1.29 | % | (25.67 | )% | (12.32 | )% | 3.88 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 8,887 | $ | 9,510 | $ | 7,642 | $ | 7,260 | $ | 8,335 | $ | 12,534 | $ | 13,996 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 2.04 | %(g)(h) | 2.05 | %(h) | 2.05 | % | 2.05 | % | 2.07 | % | 2.07 | %(g) | 2.10 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 2.04 | %(g) | 2.05 | % | 2.05 | % | 2.05 | % | 2.05 | % | 2.05 | %(g) | 2.05 | % | ||||||||||||||
Ratio of net investment loss to average net assets | (0.51 | )%(g) | (0.04 | )% | (0.81 | )% | (1.13 | )% | (1.74 | )% | (0.82 | )%(g) | (1.16 | )% | ||||||||||||||
Portfolio turnover rate(i) | 55 | % | 42 | % | 66 | % | 50 | % | 52 | % | 12 | % | 28 | % |
(a) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(b) | Per share amounts and ratios to average net assets include income and expenses of the CoreCommodity Management Cayman Commodity Fund Ltd. (wholly-owned subsidiary). |
(c) | Calculated using the average shares method. |
(d) | The per share amount does not correspond to activity reflected in the Statement of Operations due to class specific expenses during the period. |
(e) | Less than $0.005 or ($0.005) per share. |
(f) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(g) | Annualized. |
(h) | The ratio of operating expenses excluding fee waiver/reimbursements to average net assets is calculated excluding the waived Subsidiary management fee (see Note 8 for additional detail). The ratio inclusive of that fee would be 2.19% and 2.21% for the six months ended April 30, 2019 and year ended October 31, 2018, respectively. |
(i) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
20| April 30, 2019
ALPS | CoreCommodity Management
CompleteCommodities® Strategy Fund – Class I
Consolidated Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(a) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period(b) | $ | 7.58 | $ | 7.67 | $ | 7.31 | $ | 7.15 | $ | 9.57 | $ | 10.87 | $ | 10.37 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income/(loss)(c) | 0.01 | 0.07 | 0.01 | (0.02 | ) | (0.06 | ) | (0.01 | ) | (0.03 | ) | |||||||||||||||||
Net realized and unrealized gain/(loss) | (0.31 | ) | 0.03 | 0.36 | 0.18 | (2.31 | ) | (1.29 | ) | 0.53 | ||||||||||||||||||
Total from investment operations | (0.30 | ) | 0.10 | 0.37 | 0.16 | (2.37 | ) | (1.30 | ) | 0.50 | ||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.21 | ) | (0.19 | ) | (0.01 | ) | – | (0.05 | ) | – | – | |||||||||||||||||
Total distributions | (0.21 | ) | (0.19 | ) | (0.01 | ) | – | (0.05 | ) | – | – | |||||||||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (d) | 0.00 | (d) | 0.00 | (d) | 0.00 | (d) | 0.00 | (d) | 0.00 | (d) | 0.00 | (d) | ||||||||||||||
Net increase/(decrease) in net asset value | (0.51 | ) | (0.09 | ) | 0.36 | 0.16 | (2.42 | ) | (1.30 | ) | 0.50 | |||||||||||||||||
Net asset value, end of period | $ | 7.07 | $ | 7.58 | $ | 7.67 | $ | 7.31 | $ | 7.15 | $ | 9.57 | $ | 10.87 | ||||||||||||||
TOTAL RETURN(e) | (3.86 | )% | 1.42 | % | 5.03 | % | 2.24 | % | (24.88 | )% | (11.96 | )% | 4.82 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 590,537 | $ | 647,195 | $ | 482,710 | $ | 463,741 | $ | 362,389 | $ | 393,618 | $ | 266,293 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.13 | %(f)(g) | 1.13 | %(g) | 1.15 | % | 1.15 | % | 1.17 | % | 1.16 | %(f) | 1.16 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.13 | %(f) | 1.13 | % | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | %(f) | 1.15 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | 0.40 | %(f) | 0.90 | % | 0.08 | % | (0.22 | )% | (0.73 | )% | (0.12 | )%(f) | (0.26 | )% | ||||||||||||||
Portfolio turnover rate(h) | 55 | % | 42 | % | 66 | % | 50 | % | 52 | % | 12 | % | 28 | % |
(a) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(b) | Per share amounts and ratios to average net assets include income and expenses of the CoreCommodity Management Cayman Commodity Fund Ltd. (wholly-owned subsidiary). |
(c) | Calculated using the average shares method. |
(d) | Less than $0.005 or ($0.005) per share. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(f) | Annualized. |
(g) | The ratio of operating expenses excluding fee waiver/reimbursements to average net assets is calculated excluding the waived Subsidiary management fee (see Note 8 for additional detail). The ratio inclusive of that fee would be 1.28% and 1.29% for the six months ended April 30, 2019 and year ended October 31, 2018, respectively. |
(h) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
21| April 30, 2019
ALPS | Kotak India Growth Fund
Management Commentary | April 30, 2019 (Unaudited) |
Performance
ALPS | Kotak India Growth Fund (the “Fund”) was launched on February 14, 2011. During the 12-month period ended 31st Oct 2018 (hereinafter also referred to as “the period”), the Fund’s Class A Shares, INDAX, delivered a total return of -16.98% at Net Asset Value, Class C, INFCX, delivered -18.32% with CDSC, and Class I, INDIX, delivered -16.66%. The fund underperformed the benchmark Nifty 500 Index (“NSE500”) which returned -16.51% during the period for Class A and C Shares. The performance numbers do not include any sales charges.
The period between November 2018 and April 2019 saw periods of volatility both in global as well as Indian equities mainly led by US-China conflicts over trade, slowdown in Indian markets along with difficult liquidity conditions in the after-math of the default of one of the leading infrastructure financing company in India in September, 2018 and political uncertainty in the after-math of the ruling political party, the Bhartiya Janata Party, losing three key state assembly elections in December, 2018.
Global commodity prices especially crude (-13%) softened in this period which helped India’s current account deficit and consequently on the currency which appreciated by 4% over this period. Global as well as domestic bond yields declined in this period; 10-year US bond yields declined by 56 bps while that for India declined by 61 bps. The US Federal Reserve increased the Fed funds rate once in this period (December 2018), as expected by markets.
The Indian central bank, had cut the repo rate by 50 bps in this period as inflation remained under control while GDP growth witnessed steady slowdown. The Monetary Policy Committee of the Indian central bank also retained the stance as neutral. The committee also revised down the inflation trajectory by around 30-40 bps through FY2020 led by expectations of a benign food inflation and moderation in inflation expectations and core inflation given the grim growth outlook. Given the benign inflation outlook, the committees focus remained on addressing tepid growth as indicated by cyclical slowdown witnessed in the domestic high frequency indicators and deteriorating global outlook.
The interim union budget for FY2020 was announced on Feb 1, 2019 in which the government announced several measures to boost (1) the income of small and marginal farmers and (2) net income of a section of individual taxpayers. These measures will cost the government Rs1 tn on an annual basis assuming they are retained in the FY2020 final budget by the next government. The government has set a Gross Fiscal Deficit target of 3.4% of GDP for FY2020. It expects 14% growth in overall revenues, 15% increase in direct tax revenues, 12% growth in indirect tax revenues and₹900 bn of divestment revenues. On the expenditure side, it expects overall expenditure to increase 13%. The government announced (1) a new scheme (PM-KISAN) which entails direct payment of₹6,000 per annum to 120 mn small and marginal farmers, (2) rebate for individual taxpayers with taxable income below₹0.5 mn, which would entail savings up to₹12,500 (average₹6,000) for 30 mn
individual tax payers assuming this is implemented in the FY2020 final budget and (3) several benefits to homeowners.
Real GDP growth moderated to 6.6% in 3QFY19 (Oct - Dec 2018) compared to 7% in 2QFY19 (July - Sept 2018) on the back of moderation in both private and government consumption. Nominal GDP growth also slowed to 11% from 11.9% in 2QFY19. Real Gross Value Added (“GVA”) growth softened to 6.3% from 6.8% in 2QFY19 due to a slowdown in agriculture (2.7% from 4.2% in 2QFY19) and in services (7.2% from 7.4% in 2QFY19). Within services, while growth in financial, real estate and professional services stayed firm at 7.3%, growth in public administration, defence and other services moderated to 7.6% (8.7% in 2QFY19). Positives emerged from an improvement in industrial growth to 7.1% (6.7% in 2QFY19). Within industry, construction exhibited a robust growth of 9.6% (8.5% in 2QFY19) and mining expanded by 1.3% after contracting by 2.1% in 2QFY19. Growth in manufacturing and electricity, however, moderated to 6.7% and 8.2% respectively. The decline in manufacturing is consistent with the moderation observed in manufacturing India Industrial Production (3.4% from 5.7% in 2QFY19).
Portfolio Composition
As of 30th April 2019, Financials remains the largest sector (33.17% wt.), followed by Fast Moving Consumer Goods (13.04%) and Information Technology (12.98%). The top 5 holdings in the portfolio are HDFC Bank Ltd, Infosys Ltd, ICICI Bank Ltd, Reliance Industries Ltd and Housing Development Finance Co. Large active deviations in the portfolio are in Fast Moving Consumer Goods (+3.0% deviation from benchmark), Cement & Cement Products (+2.9% deviation), Oil & Gas (-2.4% deviation) and Metal & Metal Products (-1.6%). In terms of market capitalization focus, as of 30th April, the fund is invested 70.69% in large caps, 18.15% in midcaps and 4.58% in small-caps.
During the period, some of the names within our preferred sectors where we initiated new positions are HDFC Asset Management Co. Ltd, and Mahindra Lifespace Developers Ltd. As of 30th April 2019, some of the stocks where we have exited completely include Yes Bank Ltd, Thermax Ltd, Finolex Cables Ltd and Tata Motors DVR.
Outlook
The most significant event during the period, India’s general elections 2019 results were on expected lines and yet were a surprise. We were expecting continuity and that played out, however the mandate was much larger than we expected. This, as we have earlier outlined, gives the government much more leeway in policy making. Additionally, this mandate despite the current fiscal tightness, gives them some more fiscal space to support the economy. The recent sharp correction in the oil prices comes as an additional booster for India macro.
We have a strong and a stable government which can drive positive policy changes, monetary policy stance has been changed to accommodative, oil prices have fallen sharply, and now even the US Fed is now dovish. All this augurs well for the macro. From an equity market perspective, investors have to be cognizant of the near term
22| April 30, 2019
ALPS | Kotak India Growth Fund
Management Commentary | April 30, 2019 (Unaudited) |
headwinds in the economy and earnings. The GDP slowed down to 5.8% growth for Jan-March 2019 quarter and high frequency indicators like auto sales, cement sales, credit growth etc. point to continued slower growth in the current quarter.
We think that the formation of stable government could result in the improvement in risk appetite. Given the under-performance of mid and small caps in last 12 to 18 months, the relative valuation differential with large caps has been bridged and the starting point of investing in mid / small cap space is more reasonable. Previous episodes of prolonged underperformance of mid and small caps have been followed by robust gains in subsequent periods.
Political stability, lower interest rates, better economic growth with stable macro-economic conditions and improvement in earnings growth are few potential catalysts for uptick in the mid-market segment. Some of these catalysts are falling in place while some others we think are likely to improve in coming quarters, and from a bottom up perspective there are many high growth-high quality stocks which are now trading at reasonable valuations.
Mr. Nitin Tejpal Jain
Fund Manager
NSE500 is an Index of India comprised of the top 500 companies listed on the NSE.
The views of the author and information discussed in this commentary are as of the date of publication, are subject to change, and may not reflect the writer's current views. The views expressed are those of the author only, and represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the fund or any securities or any sectors mentioned in this letter. The subject matter contained in this letter has been derived from several sources believed to be reliable and accurate at the time of compilation. Neither ALPS Advisors, Inc., Kotak Mahindra (UK) Limited, nor the Fund accepts any liability for losses either direct or consequential caused by the use of this information.
Diversification cannot guarantee gain or prevent losses.
Past performance is no guarantee of future results. Dividends are not guaranteed and are subject to change or elimination. Investments in international and emerging markets securities include exposure to risks such as currency fluctuations, foreign taxes and regulations, and the potential for illiquid markets and political instability.
23| April 30, 2019
ALPS | Kotak India Growth Fund
Performance Update | April 30, 2019 (Unaudited) |
Performance of $10, 000 Initial Investment(as of April 30,2019)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception.Past performance does not guarantee future results.This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns(as of April 30, 2019)
6 Month | 1 Year | 3 Year | 5 Year | Since Inception^ | Total Expense Ratio | What You Pay* | |
Investor#(NAV) | 17.30% | -2.76% | 11.17% | 11.60% | 6.92% | 2.87% | 2.00% |
Class A (NAV) | 17.23% | -2.91% | 11.11% | 11.57% | 6.90% | 3.16% | 2.00% |
Class A (MOP) | 10.80% | -8.22% | 9.03% | 10.32% | 6.16% | ||
Class C (NAV) | 16.91% | -3.44% | 10.33% | 10.85% | 6.19% | 3.51% | 2.60% |
Class C (CDSC) | 15.91% | -4.34% | 10.33% | 10.85% | 6.19% | ||
Class I | 17.43% | -2.55% | 11.43% | 11.96% | 7.26% | 2.48% | 1.60% |
Nifty 500 Index1 | 17.41% | -2.29% | 11.53% | 10.18% | 5.50% | ||
MSCI India Index Total Return2 | 18.79% | 3.11% | 11.71% | 8.23% | 4.13% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million. The Fund imposes a 2.00% redemption fee on shares held for less than 30 days.
Performance less than 1 year is cumulative.
24| April 30, 2019
ALPS | Kotak India Growth Fund
Performance Update | April 30, 2019 (Unaudited) |
Performance shown for Class A shares prior to June 12, 2018 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class A shares.
1 | Nifty 500 Index (formerly the CNX 500 Index) - India's first broad based benchmark of the Indian capital market. The Nifty 500 companies are disaggregated into 72 industry indices. Industry weightages in the index reflect the industry weightages in the market. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
2 | MSCI India Index - designed to measure the performance of the large and mid cap segments of the Indian market. With 64 constituents, the index covers approximately 85% of the Indian equity universe. |
^ | Fund Inception date of February 14, 2011 for Investor Class and Classes C and I; Fund Inception date of June 12, 2018 for Class A. |
* | What You Pay reflects the Advisor's and Sub-Advisor’s decision to contractually limit expenses through February 28, 2020. Please see the prospectus for additional information. |
# | Prior to December 1, 2017, Investor Class was known as Class A. |
The Fund is “non-diversified” and will generally be more volatile than diversified funds.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Investing in India involves risk and considerations not present when investing in more established securities markets. The Fund may be more susceptible to economic, market, political and local risks of the region than a fund that is more geographically diversified. Investments in India are subject to a number of risks including, but not limited to, risk of losing some or all of the capital invested, high market volatility, variable market liquidity, geopolitical risks (including political instability), exchange rate fluctuations (between the currency of the fund’s share class and the Indian Rupee), changes in tax regime and restrictions on investment activities of foreign investors.
Top Ten Holdings(as a % of Net Assets)†
HDFC Bank, Ltd. | 5.51 | % | ||
Reliance Industries, Ltd. | 4.40 | % | ||
Housing Development Finance Corp., Ltd. | 4.06 | % | ||
ITC, Ltd. | 4.05 | % | ||
Infosys, Ltd. | 4.02 | % | ||
Axis Bank, Ltd. | 3.96 | % | ||
ICICI Bank, Ltd. | 3.88 | % | ||
HDFC Bank, Ltd. | 3.49 | % | ||
Tata Consultancy Services, Ltd. | 3.31 | % | ||
Larsen & Toubro, Ltd. | 2.70 | % | ||
Top Ten Holdings | 39.38 | % |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents approximate values only. |
Industry Sector Allocation(as a % of Net Assets)
25| April 30, 2019
ALPS | Kotak India Growth Fund
Consolidated Statement of Investments | April 30, 2019 (Unaudited) |
Shares | Value (Note 2) | |||||||
COMMON STOCKS (94.43%) | ||||||||
Consumer Discretionary (8.23%) | ||||||||
Auto Components (1.43%) | ||||||||
Motherson Sumi Systems, Ltd. | 54,310 | $ | 114,487 | |||||
MRF, Ltd. | 365 | 277,602 | ||||||
392,089 | ||||||||
Automobiles (2.90%) | ||||||||
Mahindra & Mahindra, Ltd. | 13,540 | 125,660 | ||||||
Maruti Suzuki India, Ltd. | 4,825 | 462,329 | ||||||
TVS Motor Co., Ltd. | 29,395 | 208,051 | ||||||
796,040 | ||||||||
Hotels, Restaurants & Leisure (1.19%) | ||||||||
Jubilant Foodworks, Ltd. | 17,079 | 326,400 | ||||||
Household Durables (1.24%) | ||||||||
Crompton Greaves Consumer Electricals, Ltd. | 99,032 | 338,282 | ||||||
Textiles, Apparel & Luxury Goods (1.47%) | ||||||||
Titan Co., Ltd. | 24,224 | 403,418 | ||||||
TOTAL CONSUMER DISCRETIONARY | 2,256,229 | |||||||
Consumer Staples (7.85%) | ||||||||
Food Products (1.19%) | ||||||||
Britannia Industries, Ltd. | 7,847 | 326,644 | ||||||
Personal Products (2.61%) | ||||||||
Colgate-Palmolive India, Ltd. | 14,263 | 247,992 | ||||||
Emami, Ltd. | 42,422 | 235,902 | ||||||
Godrej Consumer Products, Ltd. | 24,721 | 231,537 | ||||||
715,431 | ||||||||
Tobacco (4.05%) | ||||||||
ITC, Ltd. | 256,155 | 1,110,267 | ||||||
TOTAL CONSUMER STAPLES | 2,152,342 | |||||||
Energy (7.25%) | ||||||||
Oil, Gas & Consumable Fuels (7.25%) | ||||||||
Hindustan Petroleum Corp., Ltd. | 91,686 | 385,474 | ||||||
Petronet LNG, Ltd. | 114,406 | 397,082 | ||||||
Reliance Industries, Ltd. | 60,273 | 1,207,478 | ||||||
1,990,034 | ||||||||
TOTAL ENERGY | 1,990,034 | |||||||
Financials (33.12%) | ||||||||
Banks (23.34%) | ||||||||
AU Small Finance Bank, Ltd.(a)(b) | 32,462 | 300,846 | ||||||
Axis Bank, Ltd.(c) | 98,629 | 1,087,271 | ||||||
HDFC Bank, Ltd., ADR | 13,175 | 1,510,514 |
Shares | Value (Note 2) | |||||||
Banks (continued) | ||||||||
HDFC Bank, Ltd. | 28,821 | $ | 957,438 | |||||
ICICI Bank, Ltd., Sponsored ADR | 92,945 | 1,064,220 | ||||||
ICICI Bank, Ltd. | 65,824 | 383,658 | ||||||
IndusInd Bank, Ltd. | 15,957 | 368,755 | ||||||
RBL Bank, Ltd.(a)(b) | 31,400 | 306,409 | ||||||
State Bank of India(c) | 94,762 | 422,334 | ||||||
6,401,445 | ||||||||
Capital Markets (0.58%) | ||||||||
HDFC Asset Management Co., Ltd.(a)(b) | 6,500 | 158,457 | ||||||
Consumer Finance (3.72%) | ||||||||
Bajaj Finance, Ltd. | 11,200 | 498,671 | ||||||
Bharat Financial Inclusion, Ltd.(c) | 36,043 | 522,451 | ||||||
1,021,122 | ||||||||
Insurance (1.42%) | ||||||||
ICICI Prudential Life Insurance Co., Ltd.(a)(b) | 73,476 | 390,455 | ||||||
Thrifts & Mortgage Finance (4.06%) | ||||||||
Housing Development Finance Corp., Ltd. | 38,780 | 1,112,555 | ||||||
TOTAL FINANCIALS | 9,084,034 | |||||||
Health Care (4.85%) | ||||||||
Health Care Providers & Services (0.50%) | ||||||||
HealthCare Global Enterprises, Ltd.(c) | 48,339 | 137,052 | ||||||
Pharmaceuticals (4.35%) | ||||||||
Aurobindo Pharma, Ltd. | 23,394 | 275,550 | ||||||
Cadila Healthcare, Ltd. | 39,579 | 185,269 | ||||||
Cipla, Ltd. | 22,500 | 182,764 | ||||||
Lupin, Ltd. | 24,182 | 303,111 | ||||||
Sun Pharmaceutical Industries, Ltd. | 37,534 | 247,113 | ||||||
1,193,807 | ||||||||
TOTAL HEALTH CARE | 1,330,859 | |||||||
Industrials (8.28%) | ||||||||
Airlines (0.51%) | ||||||||
InterGlobe Aviation, Ltd.(a)(b) | 6,413 | 139,794 | ||||||
Building Products (2.06%) | ||||||||
Astral Poly Technik, Ltd. | 8,024 | 142,246 | ||||||
Kajaria Ceramics, Ltd. | 34,896 | 298,573 | ||||||
Somany Ceramics, Ltd. | 20,143 | 123,173 | ||||||
563,992 | ||||||||
Construction & Engineering (2.70%) | ||||||||
Larsen & Toubro, Ltd. | 38,241 | 741,666 |
26| April 30, 2019
ALPS | Kotak India Growth Fund
Consolidated Statement of Investments | April 30, 2019 (Unaudited) |
Shares | Value (Note 2) | |||||||
Electrical Equipment (1.89%) | ||||||||
Amara Raja Batteries, Ltd. | 23,331 | $ | 222,077 | |||||
V-Guard Industries, Ltd. | 94,749 | 296,794 | ||||||
518,871 | ||||||||
Machinery (0.60%) | ||||||||
Timken India, Ltd. | 20,718 | 163,978 | ||||||
Professional Services (0.52%) | ||||||||
TeamLease Services, Ltd.(c) | 3,354 | 143,135 | ||||||
TOTAL INDUSTRIALS | 2,271,436 | |||||||
Information Technology (13.03%) | ||||||||
IT Services (13.03%) | ||||||||
HCL Technologies, Ltd. | 34,186 | 581,833 | ||||||
Infosys, Ltd., Sponsored ADR | 102,490 | 1,102,792 | ||||||
Infosys, Ltd. | 43,615 | 469,776 | ||||||
Tata Consultancy Services, Ltd. | 27,914 | 907,330 | ||||||
Tech Mahindra, Ltd. | 42,612 | 512,543 | ||||||
3,574,274 | ||||||||
TOTAL INFORMATION TECHNOLOGY | 3,574,274 | |||||||
Materials (10.20%) | ||||||||
Chemicals (3.19%) | ||||||||
Berger Paints India, Ltd. | 69,473 | 318,592 | ||||||
Bodal Chemicals, Ltd. | 78,808 | 136,916 | ||||||
Gulf Oil Lubricants India, Ltd. | 11,307 | 139,895 | ||||||
SH Kelkar & Co., Ltd.(a)(b) | 52,908 | 113,937 | ||||||
Supreme Industries, Ltd. | 10,150 | 166,717 | ||||||
876,057 | ||||||||
Construction Materials (5.37%) | ||||||||
Century Textiles & Industries, Ltd. | 13,453 | 177,460 | ||||||
JK Cement, Ltd. | 20,890 | 271,420 | ||||||
Odisha Cement, Ltd. | 15,024 | 248,050 | ||||||
Ramco Cements, Ltd. | 37,945 | 422,560 | ||||||
Shree Cement, Ltd. | 1,243 | 353,626 | ||||||
1,473,116 | ||||||||
Metals & Mining (1.64%) | ||||||||
Jindal Steel & Power, Ltd.(c) | 130,205 | 333,547 | ||||||
Vedanta, Ltd., ADR | 12,105 | 115,724 | ||||||
449,271 | ||||||||
TOTAL MATERIALS | 2,798,444 | |||||||
Real Estate (1.62%) | ||||||||
Real Estate Management & Development (1.62%) | ||||||||
Brigade Enterprises, Ltd. | 73,616 | 235,344 |
Shares | Value (Note 2) | |||||||
Real Estate Management & Development (continued) | ||||||||
Mahindra Lifespace Developers, Ltd. | 38,100 | $ | 208,156 | |||||
443,500 | ||||||||
TOTAL REAL ESTATE | 443,500 | |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $22,867,289) | 25,901,152 | |||||||
TOTAL INVESTMENTS (94.43%) | ||||||||
(Cost $22,867,289) | $ | 25,901,152 | ||||||
Other Assets In Excess Of Liabilities (5.57%) | 1,528,940 | |||||||
NET ASSETS (100.00%) | $ | 27,430,092 |
(a) | Security exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of April 30, 2019, the aggregate market value of those securities was $1,409,896, representing 5.14% of net assets. |
(b) | Securities were purchased pursuant to Regulation S under the Securities Act of 1933, which exempts securities offered and sold outside of the United States from registration. Such securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Fund's Board of Trustees. As of April 30, 2019 the aggregate market value of those securities was $1,409,896 representing 5.14% of net assets. |
(c) | Non-Income Producing Security. |
For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets.
See Notes to Financial Statements.
27| April 30, 2019
ALPS | Kotak India Growth Fund
Consolidated Statement of Assets and Liabilities | April 30, 2019 (Unaudited) |
ASSETS | ||||
Investments, at value | $ | 25,901,152 | ||
Cash | 1,551,494 | |||
Foreign currency, at value (Cost $1,863) | 1,855 | |||
Receivable for shares sold | 109,454 | |||
Receivable due from advisor | 6,480 | |||
Prepaid expenses and other assets | 32,890 | |||
Total Assets | 27,603,325 | |||
LIABILITIES | ||||
Payable for shares redeemed | 2,641 | |||
Payable for foreign capital gains tax | 92,386 | |||
Administration and transfer agency fees payable | 30,646 | |||
Distribution and services fees payable | 4,930 | |||
Trustees' fees and expenses payable | 1,984 | |||
Professional fees payable | 23,268 | |||
Accrued expenses and other liabilities | 17,378 | |||
Total Liabilities | 173,233 | |||
NET ASSETS | $ | 27,430,092 | ||
NET ASSETS CONSIST OF | ||||
Paid-in capital | $ | 24,348,967 | ||
Total distributable earnings | 3,081,125 | |||
NET ASSETS | $ | 27,430,092 | ||
INVESTMENTS, AT COST | $ | 22,867,289 | ||
PRICING OF SHARES | ||||
Investor Class: | ||||
Net Asset Value, offering and redemption price per share | $ | 12.88 | ||
Net Assets | $ | 5,534,273 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 429,841 | |||
Class A: | ||||
Net Asset Value, offering and redemption price per share | $ | 12.86 | ||
Net Assets | $ | 9,886 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 769 | |||
Maximum offering price per share ((NAV/0.9450), based on maximum sales charge of 5.50% of the offering price) | $ | 13.61 | ||
Class C: | ||||
Net Asset Value, offering and redemption price per share(a) | $ | 12.10 | ||
Net Assets | $ | 2,299,547 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 190,074 | |||
Class I: | ||||
Net Asset Value, offering and redemption price per share | $ | 13.27 | ||
Net Assets | $ | 19,586,386 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 1,475,548 |
(a) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. For a description of a possible sales charge, please see the Fund's Prospectus. |
See Notes to Financial Statements.
28| April 30, 2019
ALPS | Kotak India Growth Fund
Consolidated Statement of Operations | For the Six Months Ended April 30, 2019 (Unaudited) |
INVESTMENT INCOME | ||||
Dividends | $ | 57,276 | ||
Foreign taxes withheld on dividends | (242 | ) | ||
Total Investment Income | 57,034 | |||
EXPENSES | ||||
Investment advisory fees | 134,340 | |||
Administrative fees | 75,300 | |||
Transfer agency fees | 1,695 | |||
Distribution and service fees | ||||
Investor Class | 8,773 | |||
Class A | 18 | |||
Class C | 10,865 | |||
Professional fees | 21,628 | |||
Reports to shareholders and printing fees | 3,091 | |||
State registration fees | 29,906 | |||
Insurance fees | 262 | |||
Franchise tax expenses | 9,540 | |||
Custody fees | 41,253 | |||
Trustees' fees and expenses | 2,364 | |||
Miscellaneous expenses | 17,386 | |||
Total Expenses | 356,421 | |||
Less fees waived/reimbursed by investment advisor (Note 8) | ||||
Investor Class | (44,700 | ) | ||
Class A | (71 | ) | ||
Class C | (16,812 | ) | ||
Class I | (102,971 | ) | ||
Net Expenses | 191,867 | |||
Net Investment Loss | (134,833 | ) | ||
Net realized gain on investments | 773,238 | |||
Net realized loss on foreign currency transactions | (16,663 | ) | ||
Net Realized Gain | 756,575 | |||
Net change in unrealized appreciation on investments | 2,786,859 | |||
Net change in unrealized appreciation on translation of assets and liabilities denominated in foreign currencies | 1,734 | |||
Net change in unrealized foreign capital gains tax | (92,386 | ) | ||
Net Change in Unrealized Appreciation | 2,696,207 | |||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS | 3,452,782 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 3,317,949 |
See Notes to Financial Statements.
29| April 30, 2019
ALPS | Kotak India Growth Fund
Consolidated Statements of Changes in Net Assets
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | |||||||
OPERATIONS | ||||||||
Net investment loss | $ | (134,833 | ) | $ | (225,099 | ) | ||
Net realized gain | 756,575 | 1,417,150 | ||||||
Net change in unrealized appreciation/(depreciation) | 2,696,207 | (5,903,633 | ) | |||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 3,317,949 | (4,711,582 | ) | |||||
TOTAL DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class(a) | (389,048 | ) | (271,374 | ) | ||||
Class A(b) | (573 | ) | – | |||||
Class C | (144,449 | ) | (64,292 | ) | ||||
Class I | (895,310 | ) | (548,207 | ) | ||||
Net Decrease in Net Assets from Distributions | (1,429,380 | ) | (883,873 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class(a) | 391,515 | 1,570,314 | ||||||
Class A(b) | – | 10,000 | ||||||
Class C | 43,000 | 488,963 | ||||||
Class I | 7,421,152 | 6,764,498 | ||||||
Dividends reinvested | ||||||||
Investor Class(a) | 326,938 | 241,801 | ||||||
Class A(b) | 573 | – | ||||||
Class C | 142,713 | 63,360 | ||||||
Class I | 720,664 | 486,210 | ||||||
Shares redeemed, net of redemption fees | ||||||||
Investor Class(a) | (1,522,623 | ) | (3,961,693 | ) | ||||
Class C | (102,062 | ) | (170,932 | ) | ||||
Class I | (3,480,335 | ) | (9,865,999 | ) | ||||
Net Increase/(Decrease) in Net Assets Derived from Beneficial Interest Transactions | 3,941,535 | (4,373,478 | ) | |||||
Net increase/(decrease) in net assets | 5,830,104 | (9,968,933 | ) | |||||
NET ASSETS | ||||||||
Beginning of period | 21,599,988 | 31,568,921 | ||||||
End of period | $ | 27,430,092 | $ | 21,599,988 |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Class A commenced operations on June 12, 2018. |
See Notes to Financial Statements.
30| April 30, 2019
ALPS | Kotak India Growth Fund – Investor Class
Consolidated Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(b) | |||||||||||||||||||
Net asset value, beginning of period(c) | $ | 11.73 | $ | 14.53 | $ | 12.32 | $ | 12.57 | $ | 13.20 | $ | 9.99 | ||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income/(loss)(d) | (0.08 | ) | (0.13 | ) | (0.10 | ) | (0.09 | ) | (0.14 | ) | 0.01 | |||||||||||||
Net realized and unrealized gain/(loss) | 2.03 | (2.26 | ) | 2.45 | 1.45 | 0.06 | 3.20 | |||||||||||||||||
Total from investment operations | 1.95 | (2.39 | ) | 2.35 | 1.36 | (0.08 | ) | 3.21 | ||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||
From net investment income | – | – | – | – | (0.17 | ) | – | |||||||||||||||||
From net realized gains | (0.80 | ) | (0.41 | ) | (0.14 | ) | (1.61 | ) | (0.38 | ) | – | |||||||||||||
Total distributions | (0.80 | ) | (0.41 | ) | (0.14 | ) | (1.61 | ) | (0.55 | ) | – | |||||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (e) | 0.00 | (e) | 0.00 | (e) | 0.00 | (e) | 0.00 | (e) | 0.00 | (e) | ||||||||||||
Net increase/(decrease) in net asset value | 1.15 | (2.80 | ) | 2.21 | (0.25 | ) | (0.63 | ) | 3.21 | |||||||||||||||
Net asset value, end of period | $ | 12.88 | $ | 11.73 | $ | 14.53 | $ | 12.32 | $ | 12.57 | $ | 13.20 | ||||||||||||
TOTAL RETURN(f) | 17.30 | % | (16.91 | )% | 19.45 | % | 13.31 | % | (0.65 | )% | 32.13 | % | ||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 5,534 | $ | 5,821 | $ | 9,538 | $ | 5,772 | $ | 5,906 | $ | 5,536 | ||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 3.45 | %(g) | 2.80 | % | 2.95 | % | 3.83 | % | 3.51 | % | 4.92 | %(g) | ||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.90 | %(g) | 1.93 | % | 1.90 | % | 1.90 | % | 1.96 | % | 1.90 | %(g) | ||||||||||||
Ratio of net investment income/(loss) to average net assets | (1.37 | )%(g) | (0.91 | )% | (0.74 | )% | (0.86 | )% | (1.03 | )% | 0.19 | %(g) | ||||||||||||
Portfolio turnover rate(h) | 38 | % | 24 | % | 30 | % | 23 | % | 58 | % | 28 | % |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(c) | Per share amounts and ratios to average net assets include income and expenses of the Kotak Mauritius Portfolio (wholly-owned subsidiary). |
(d) | Calculated using the average shares method. |
(e) | Less than $0.005 or ($0.005) per share. |
(f) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(g) | Annualized. |
(h) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
31| April 30, 2019
ALPS | Kotak India Growth Fund – Class A
Consolidated Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period June 12, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period | $ | 11.72 | $ | 13.90 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment loss(a) | (0.09 | ) | (0.04 | ) | ||||
Net realized and unrealized gain/(loss) | 2.03 | (2.14 | ) | |||||
Total from investment operations | 1.94 | (2.18 | ) | |||||
DISTRIBUTIONS: | ||||||||
From net realized gains | (0.80 | ) | – | |||||
Total distributions | (0.80 | ) | – | |||||
Net increase/(decrease) in net asset value | 1.14 | (2.18 | ) | |||||
Net asset value, end of period | $ | 12.86 | $ | 11.72 | ||||
TOTAL RETURN(b) | 17.23 | % | (15.68 | )% | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 10 | $ | 8 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 3.55 | %(c) | 3.16 | %(c) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 2.00 | %(c) | 2.00 | %(c) | ||||
Ratio of net investment loss to average net assets | (1.48 | %)(c) | (0.79 | %)(c) | ||||
Portfolio turnover rate(d) | 38 | % | 24 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
32| April 30, 2019
ALPS | Kotak India Growth Fund – Class C
Consolidated Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(a) | |||||||||||||||||||
Net asset value, beginning of period(b) | $ | 11.10 | $ | 13.87 | $ | 11.85 | $ | 12.23 | $ | 12.88 | $ | 9.77 | ||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment loss(c) | (0.12 | ) | (0.21 | ) | (0.18 | ) | (0.16 | ) | (0.21 | ) | (0.03 | ) | ||||||||||||
Net realized and unrealized gain/(loss) | 1.92 | (2.15 | ) | 2.34 | 1.39 | 0.05 | 3.14 | |||||||||||||||||
Total from investment operations | 1.80 | (2.36 | ) | 2.16 | 1.23 | (0.16 | ) | 3.11 | ||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||
From net investment income | – | – | – | – | (0.11 | ) | – | |||||||||||||||||
From net realized gains | (0.80 | ) | (0.41 | ) | (0.14 | ) | (1.61 | ) | (0.38 | ) | – | |||||||||||||
Total distributions | (0.80 | ) | (0.41 | ) | (0.14 | ) | (1.61 | ) | (0.49 | ) | – | |||||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (d) | – | – | 0.00 | (d) | – | 0.00 | (d) | |||||||||||||||
Net increase/(decrease) in net asset value | 1.00 | (2.77 | ) | 2.02 | (0.38 | ) | (0.65 | ) | 3.11 | |||||||||||||||
Net asset value, end of period | $ | 12.10 | $ | 11.10 | $ | 13.87 | $ | 11.85 | $ | 12.23 | $ | 12.88 | ||||||||||||
TOTAL RETURN(e) | 16.91 | % | (17.52 | )% | 18.60 | % | 12.51 | % | (1.34 | )% | 31.83 | % | ||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 2,300 | $ | 2,024 | $ | 2,140 | $ | 1,925 | $ | 1,965 | $ | 1,497 | ||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 4.15 | %(f) | 3.51 | % | 3.69 | % | 4.54 | % | 4.11 | % | 5.57 | %(f) | ||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 2.60 | %(f) | 2.60 | % | 2.60 | % | 2.60 | % | 2.60 | % | 2.60 | %(f) | ||||||||||||
Ratio of net investment loss to average net assets | (2.08 | )%(f) | (1.57 | )% | (1.48 | )% | (1.56 | )% | (1.67 | )% | (0.50 | )%(f) | ||||||||||||
Portfolio turnover rate(g) | 38 | % | 24 | % | 30 | % | 23 | % | 58 | % | 28 | % |
(a) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(b) | Per share amounts and ratios to average net assets include income and expenses of the Kotak Mauritius Portfolio (wholly-owned subsidiary). |
(c) | Calculated using the average shares method. |
(d) | Less than $0.005 or ($0.005) per share. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(f) | Annualized. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
33| April 30, 2019
ALPS | Kotak India Growth Fund – Class I
Consolidated Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(a) | |||||||||||||||||||
Net asset value, beginning of period(b) | $ | 12.05 | $ | 14.87 | $ | 12.58 | $ | 12.76 | $ | 13.29 | $ | 10.04 | ||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income/(loss)(c) | (0.07 | ) | (0.08 | ) | (0.06 | ) | (0.06 | ) | (0.09 | ) | 0.03 | |||||||||||||
Net realized and unrealized gain/(loss) | 2.09 | (2.33 | ) | 2.48 | 1.49 | 0.06 | 3.22 | |||||||||||||||||
Total from investment operations | 2.02 | (2.41 | ) | 2.42 | 1.43 | (0.03 | ) | 3.25 | ||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||
From net investment income | – | – | – | – | (0.13 | ) | – | |||||||||||||||||
From net realized gains | (0.80 | ) | (0.41 | ) | (0.14 | ) | (1.61 | ) | (0.38 | ) | – | |||||||||||||
Total distributions | (0.80 | ) | (0.41 | ) | (0.14 | ) | (1.61 | ) | (0.51 | ) | – | |||||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | – | 0.00 | (d) | 0.01 | 0.00 | (d) | 0.01 | 0.00 | (d) | |||||||||||||||
Net increase/(decrease) in net asset value | 1.22 | (2.82 | ) | 2.29 | (0.18 | ) | (0.53 | ) | 3.25 | |||||||||||||||
Net asset value, end of period | $ | 13.27 | $ | 12.05 | $ | 14.87 | $ | 12.58 | $ | 12.76 | $ | 13.29 | ||||||||||||
TOTAL RETURN(e) | 17.43 | % | (16.66 | )% | 19.68 | % | 13.70 | % | (0.23 | )% | 32.37 | % | ||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 19,586 | $ | 13,746 | $ | 19,891 | $ | 9,772 | $ | 8,567 | $ | 8,955 | ||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 3.12 | %(f) | 2.48 | % | 2.65 | % | 3.54 | % | 3.10 | % | 4.49 | %(f) | ||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.60 | %(f) | 1.60 | % | 1.60 | % | 1.60 | % | 1.60 | % | 1.60 | %(f) | ||||||||||||
Ratio of net investment income/(loss) to average net assets | (1.07 | )%(f) | (0.57 | )% | (0.45 | )% | (0.56 | )% | (0.67 | )% | 0.50 | %(f) | ||||||||||||
Portfolio turnover rate(g) | 38 | % | 24 | % | 30 | % | 23 | % | 58 | % | 28 | % |
(a) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(b) | Per share amounts and ratios to average net assets include income and expenses of the Kotak Mauritius Portfolio (wholly-owned subsidiary). |
(c) | Calculated using the average shares method. |
(d) | Less than $0.005 or ($0.005) per share. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(f) | Annualized. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
34| April 30, 2019
ALPS | Smith Funds
Management Commentary | April 30, 2019 (Unaudited) |
Dear Shareholder,
The ALPS | Smith Capital Investors Funds were launched on June 29, 2018 and this is the semi-annual report for the Funds for the period ending April 30, 2019. We welcome you as a shareholder to the Funds and thank you for your trust. Our process is centered around performance, relationships and investing excellence. Our ultimate goal is to provide shareholders with a consistent, risk-adjusted return with a keen focus on capital preservation.
General Commentary
We launched the two strategies under our core belief that the fixed income markets would experience greater volatility and uncertainty and thus active management could serve investors over the long-term. With the potential for difficult markets ahead, our focus on achieving risk-adjusted returns with a lens towards capital preservation becomes more important. We continue to believe the fixed income markets will experience ups and downs similar to what we saw in 2018 and 2019 and that markets will experience greater uncertainty and the potential for more severe outcomes. We expect greater volatility in interest rates and significant changes in the shape of the yield curve. With greater uncertainty comes significant dispersion and differentiation, especially in the credit markets. Active management focusing on resiliency and the ability to adapt to the volatility will be required. Our underlying concerns around passive management and closet indexing (active managers looking like the index) are more amplified after the interest rate moves we saw in 2018. Additionally, many managers, with generic over-weight in credit, saw significant volatility in 2018 and were dealt a friendly reminder about the importance of security selection and security avoidance – both crucial components of active management. We are definitively moving into a bond picker’s market.
The core of our thesis around heightened volatility in 2019 rests on the view that we are coming off a period of money being priced below its natural rate. This artificial rate environment created capital market distortions and, in many cases, poor investment of capital in the economy. The mispricing of money also resulted in behaviors and actions by individuals that created some unhealthy imbalances in the markets. We believe we will continue to contend with these imbalances and the re-pricing of risk throughout 2019, and into the future.
The intended and unintended consequences of the great monetary experiment, Quantitative Easing (QE), are still widely felt in the economy and markets—some positive and some very negative. We believe that as money is repriced to a natural/neutral rate, the residual outcome is (and will be) a significant repricing of the excesses created by the cheap money.
Many of us were raised with the mantra to ‘not fight the Fed’. We believe this is a healthy reminder and one that should be heeded again. Central Banks around the globe are scrambling to reverse the great monetary policy experiment to prepare for the next rescue. The importance of reversing course is increased by the recent tension in global relationships. The Fed has raised rates nine times while starting the reduction of its balance sheet. Other Central Banks are following suit. We think that these ongoing changes will bring heightened volatility and uncertainty but, most importantly, new
valuations and repricing of risk. With the Fed moving to a more neutral position post the volatility marked in Q4 2018 and Q1 2019, we feel even more validated in our view around uncertainty and volatility on the horizon.
At the beginning of 2019, we formulated a list of 7 themes that we felt demand focus. While these are by no means our only focus, they highlight sources of volatility and uncertainty. Here’s the list of our 7 themes and focuses for 2019:
1. | Interest Rates - A Topic That Needs No Introduction |
2. | The Fed – All I Need Is a Little Help from My Friends |
3. | Credit – The Year of Dispersion and Differentiation |
4. | Curves: Credit and Rates - “The Earth Is Flat” …and So Is The Curve |
5. | CEO/CFO, Board behaviors – Can Firms Deliver and De-Lever? Adapt or Face the Consequences as Firms Search for the Perfect Capital Structure |
6. | The Trump, Pelosi and Schumer Reports – Please Tweet Me to Less Volatility |
7. | Active Verse Passive in Fixed Income - I Am so Passive I Am Starting to Feel Bashfully Complacent |
We are confident that there will be other themes that emerge as time passes. Our goal is to provide our partners and investors greater detail and depth around these themes while highlighting our thought process and research. Our primary goal at Smith Capital Investors centers around a purpose-based, thriving culture that is focused on serving our clients, investors, and partners. We welcome the opportunity to work closely with you.
Performance Commentary as of 4/30/19
ALPS/Smith Total Return Bond Fund
The ALPS l Smith Total Return Bond Fund I Shares outperformed the Bloomberg Barclays US Aggregate Index by 74 basis points (bps) for the six months ended April 30, 2019, and 272 bps since the inception of the fund on June 29, 2018. The outperformance was achieved by focusing on active portfolio sector and duration positioning, security selection, and bottom-up fundamental credit analysis.
The semi-annual period was marked by extreme outcomes and market volatility. Both US Treasury interest rates and risk asset spreads underwent what we have described as a mini-cycle. The fourth quarter of 2018 saw Treasuries initially sell off sharply (lower price, higher yield), followed by a persistent rally (higher price, lower yield) and then a flight-to-quality move after Federal Reserve Chairman Powell’s September misstep, stating that the Federal Reserve was a long way from neutral. The Fed reversed course in January with “The Powell Pivot” indicating that the Fed is “listening to the market” and essentially going to softly land the plane and continue supporting the economy. This created a sideways movement from Treasuries and a return to risk from both the equity and credit markets. Risk assets and corporate credit spreads underwent a similar mini-cycle with a strong sell-off in late Q4 2018, culminating in small pockets of extreme liquidity-driven price action in niche areas of the fixed income markets. This time period was also marked by several equity measures reaching bear market levels in late December. Risk assets quickly reversed course in Q1 2019 partially due to the “Powell Pivot” referenced above. This supportive
35| April 30, 2019
ALPS | Smith Funds
Management Commentary | April 30, 2019 (Unaudited) |
stance for the economy and by proxy, risk assets, along with the relaxation of the liquidity overhangs in the market, created very sharp recoveries in risk assets and credit spreads. The US High Yield Index saw spreads tighten by over 110 bps in the first three weeks of the year while US Investment Grade Index spreads recovered over 20 bps during the same time period (generating over 4% and 1% of excess returns respectively in less than 15 trading days into the new year). Trade wars, slowing global economic growth, and international flows into the US Fixed Income market aided both the risk asset as well as US Treasury rallies in the first quarter of 2019. We ended the six-month period in another wave of fear, this time around a global growth slowdown (rates rally) and again a short- term movement to “all clear” (Treasury yields moved higher, prices lower) as the United States proved that the foundation remains intact.
ALPS/Smith Short Duration Bond Fund
The ALPS l Smith Short Duration Bond Fund I Shares outperformed the Bloomberg Barclays 1-3 year US Government/Credit Index by 24 bps in the six months ended April 30, 2019, and 29 bps since the inception of the fund on June 29, 2018. During the period the allocation to corporate and securitized assets allowed the Fund to outperform the index. The Fund maintained its’ focus on capital preservation as both Treasury interest rates and credit spreads marked extreme volatility due to fear and a risk-off move in the first half followed by a return to risk in the second half. Overall the Fund remained short duration and credit spread duration positioning given the flat curve, the assumptions around the US economy, the path of the Federal Funds Rate, and corporate health that is now being priced in the market.
Portfolio Positioning
In the short-term, we believe both Funds can benefit from increased insurance provide by US Treasuries given the heightened volatility. However, with valuations implying a Federal Funds Rate cut vs a hike, we believe the market is underestimating both the potential Fed path forward, as well as, structural longer-term inflation pressures.
We opportunistically increased our credit exposure, especially early in the first quarter of 2019, as the large sell-off in credit spreads in late Q4 2018 resulted in attractive risk-adjusted return profiles. Specifically, we purchased bonds of companies focused on reducing leverage and debtholder friendly activity. This increase of our weighting to corporate credit was focused on specific names as we still believe there are potential problems lurking with over-levered corporations in general. We have observed a large bifurcation in management behavior around the focus on debt levels. We view an increased focus on deleveraging as a positive for both debt and equity holders and a hallmark of stories we are attracted to in the current environment. Additionally, short duration high yield continues to be a focus. We believe this area of the market has much less forecasting error embedded in its analysis.
Within the securitized allocation in the Fund we continue to allocate money to agency mortgage-backed Collateralized Mortgage Obligation (CMOs). We find select CMOs provide much better convexity, exhibit less change in duration given changes in interest
rates and prepayment speeds, and provide higher option-adjusted spreads and yield.
Macro Commentary
Though the market jumps between all clear and fears around a global slowing, the foundation within the United States remains intact. We are simply in an adjustment period as growth settles down to a 2% pace from a 3% pace. This adjustment to growth, as well as low rates and tight credit spreads, ultimately increases market volatility. The consumer is strong: The Fed is on hold; we have full employment and higher wages. The Fed is ‘listening’ to the market and committed to transparent communication. A modest reprieve in rising mortgage rates is helping to stabilize housing. We believe combining these positives can keep the consumer’s and thus the economy’s momentum intact.
We believe volatility will be with us for the remainder of 2019 as we are coming off a period of money being priced below its natural rate and the market will continue to contend with imbalances and the re- pricing of risk. With flat curves within both the interest rate as well as credit space, there are consequences for moving out the curve with limited yield pickup. Treasuries will continue to contend with conflicting signals: domestic inflation will start to stir as we enter the end of 2019, but global growth fears will remain ever-present.
Our expectations around what could go right have largely played out so far this year. Year-to-date returns in the equity markets look more like annual expectations. The swift recovery in credit is a welcome development for many – especially issuers and those feeling offsides in November and December. Energy prices have moved significantly higher and global risk assets have been some of the best performers. The return environment looks much more challenging going forward and we believe that volatility will not remain in slumber.
It is our belief that complacency willNOT be an investor’s friend in this environment. It’s time to know your fixed-income manager, know how they invest and how they think about preserving capital.
Thank you for the confidence you have placed with us as shareholders of the Funds. We look forward to continuing to build a relationship with you and serving as an investment manager to seek to meet your income needs.
Sincerely,
R. Gibson Smith | Eric C. Bernum |
Portfolio Manager | Portfolio Manager |
36| April 30, 2019
ALPS | Smith Funds
Management Commentary | April 30, 2019 (Unaudited) |
Past performance is no guarantee of future results. Dividends are not guaranteed and are subject to change or elimination. Investments in international and emerging markets securities include exposure to risks such as currency fluctuations, foreign taxes and regulations, and the potential for illiquid markets and political instability.
The views of the author and information discussed in this commentary are as of the date of publication, are subject to change, and may not reflect the writer's current views. The views expressed are those of the author only, and represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the fund(s) or any securities or any sectors mentioned in this letter. The subject matter contained in this letter has been derived from several sources believed to be reliable and accurate at the time of compilation. Neither ALPS Advisors, Inc., Smith Capital Investors, LLC, nor the Funds accepts any liability for losses either direct or consequential caused by the use of this information.
Indices do not reflect deductions for fees, expenses, or taxes.
An investor may not invest directly in an index.
Diversification cannot guarantee gain or prevent losses.
37| April 30, 2019
ALPS | Smith Short Duration Bond Fund |
Performance Update | April 30, 2019 (Unaudited) |
Performance of $10,000 Initial Investment(as of April 30, 2019)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception.Past performance does not guarantee future results.This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns(as of April 30, 2019)
3 Month | 6 Month | Since Inception^ | Total Expense Ratio | What You Pay* | |
Class I | 1.34% | 2.76% | 3.27% | 1.71% | 0.50% |
Investor (NAV) | 1.29% | 2.73% | 2.99% | 2.70% | 0.80% |
Class A (NAV) | 1.21% | 2.65% | 2.93% | 4.19% | 0.80% |
Class A (MOP) | -4.39% | -2.99% | -2.71% | ||
Class C (NAV) | 0.99% | 2.26% | 2.35% | 3.55% | 1.49% |
Class C (CDSC) | -0.01% | 1.26% | 1.35% | ||
Bloomberg Barclays U.S. Government/Credit Bond Index¹ | 2.11% | 5.74% | 4.88% | ||
Bloomberg Barclays 1-3 Year Government/Credit Bond Index² | 1.04% | 2.52% | 2.98% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million. The Fund imposes a 2.00% redemption fee on shares held for less than 90 days.
Performance less than 1 year is cumulative.
38| April 30, 2019
ALPS | Smith Short Duration Bond Fund |
Performance Update | April 30, 2019 (Unaudited) |
1 | The Barclays U.S. Government/Credit Bond Index is a Unmanaged Index that tracks the performance of US Government and corporate bonds rated investment grade or better, with maturities of at least one year |
2 | Bloomberg Barclays 1-3 Year Gov/Credit Bond Index is a unmanaged index which is a component of the US Government/Credit Bond Index, which includes Treasury and agency securities (US Government Bond Index) and publicly issued US corporate and foreign debentures and secured notes (US Credit Bond Index). The bonds in the index are investment grade with a maturity between one and three years. |
^ | Fund Inception date of June 29, 2018. |
* | What You Pay reflects the Advisor’s decision to contractually limit expenses through February 28, 2020. Please see the prospectus for additional information. |
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors, and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Asset Type Allocation(as a % of Net Assets)†
Corporate Bond | 52.66% |
Government Bond | 38.42% |
Collateralized Mortgage Obligations | 3.21% |
Municipal Bond | 0.90% |
Commercial Mortgage-Backed Securities | 0.42% |
Mortgage-Backed Securities | 0.12% |
Cash, Cash Equivalents, and Other Net Assets | 4.27% |
Total | 100.00% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents approximate values only. |
Industry Sector Allocation(as a % of Net Assets)
Sovereign | 38.42% |
Banks | 13.74% |
Diversified Financial Services | 4.06% |
Oil & Gas | 4.03% |
Mortgage Securities | 3.74% |
Pipelines | 3.43% |
Food | 3.22% |
Pharmaceuticals | 3.13% |
Auto Manufacturers | 2.53% |
Media | 2.46% |
Healthcare-Services | 2.02% |
Aerospace/Defense | 1.74% |
Insurance | 1.51% |
Trucking & Leasing | 1.43% |
Shipbuilding | 1.25% |
Computers | 1.22% |
Electronics | 1.16% |
REITS | 1.13% |
Semiconductors | 0.88% |
Electric | 0.88% |
Beverages | 0.79% |
Financing & Development | 0.69% |
Telecommunications | 0.62% |
Chemicals | 0.55% |
Transportation | 0.52% |
States & Territories | 0.21% |
Healthcare-Products | 0.19% |
Lodging | 0.12% |
Auto Parts & Equipment | 0.06% |
Cash, Cash Equivalents, and Other Nets Assets | 4.27% |
Total | 100.00% |
39| April 30, 2019
ALPS | Smith Total Return Bond Fund |
Performance Update | April 30, 2019 (Unaudited) |
Performance of $10,000 Initial Investment(as of April 30, 2019)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception.Past performance does not guarantee future results.This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns(as of April 30, 2019)
3 Month | 6 Month | Since Inception^ | Total Expense Ratio | What You Pay* | |
Class I | 2.64% | 6.23% | 7.39% | 2.19% | 0.68% |
Investor (NAV) | 2.57% | 6.07% | 7.13% | 2.88% | 0.98% |
Class A (NAV) | 2.59% | 6.10% | 7.20% | 3.87% | 0.98% |
Class A (MOP) | -3.04% | 0.31% | 1.32% | ||
Class C (NAV) | 2.39% | 5.72% | 6.56% | 4.70% | 1.68% |
Class C (CDSC) | 1.39% | 4.72% | 5.56% | ||
Bloomberg Barclays U.S. Aggregate Bond Index¹ | 1.89% | 5.49% | 4.67% | ||
Bloomberg Barclays 1-3 Year Government/Credit Bond Index² | 1.04% | 2.52% | 2.98% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million. The Fund imposes a 2.00% redemption fee on shares held for less than 90 days.
Performance less than 1 year is cumulative.
40| April 30, 2019
ALPS | Smith Total Return Bond Fund |
Performance Update | April 30, 2019 (Unaudited) |
1 | The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. The index is not actively managed and does not reflect any deductions for fees, expenses or taxes. An investor may not invest directly in an index. |
2 | Bloomberg Barclays 1-3 Year Gov/Credit Bond Index is a unmanaged index which is a component of the US Government/Credit Bond Index, which includes Treasury and agency securities (US Government Bond Index) and publicly issued US corporate and foreign debentures and secured notes (US Credit Bond Index). The bonds in the index are investment grade with a maturity between one and three years. |
^ | Fund Inception date of June 29, 2018. |
* | What You Pay reflects the Advisor’s decision to contractually limit expenses through February 28, 2020. Please see the prospectus for additional information. |
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors, and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Asset Type Allocation(as a % of Net Assets)†
Corporate Bond | 47.33% |
Government Bond | 30.33% |
Collateralized Mortgage Obligations | 21.21% |
Cash, Cash Equivalents, and Other Net Assets | 1.13% |
Total | 100.00% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents approximate values only. |
Industry Sector Allocation(as a % of Net Assets)
Sovereign | 30.32% |
Mortgage Securities | 21.21% |
Banks | 8.43% |
Food | 4.44% |
Pipelines | 4.27% |
Oil & Gas | 3.28% |
Telecommunications | 2.73% |
Pharmaceuticals | 2.68% |
Healthcare-Services | 2.21% |
Media | 2.10% |
Auto Manufacturers | 2.02% |
Electronics | 1.88% |
Diversified Finan Serv | 1.80% |
Beverages | 1.59% |
Trucking & Leasing | 1.44% |
Insurance | 1.39% |
Aerospace/Defense | 1.30% |
Shipbuilding | 1.13% |
REITS | 0.89% |
Commercial Services | 0.86% |
Semiconductors | 0.80% |
Electric | 0.65% |
Computers | 0.37% |
Chemicals | 0.37% |
Water | 0.27% |
Metal Fabricate/Hardware | 0.20% |
Lodging | 0.10% |
Biotechnology | 0.09% |
Auto Parts & Equipment | 0.05% |
Cash, Cash Equivalents, and Other Net Assets | 1.13% |
Total | 100.00% |
41| April 30, 2019
ALPS | Smith Short Duration Bond Fund |
Statement of Investments | April 30, 2019 (Unaudited) |
Principal Amount | Value (Note 2) | |||||||
COLLATERALIZED MORTGAGE OBLIGATIONS (3.21%) | ||||||||
Fannie Mae | ||||||||
Series 1992-8, Class FA, | ||||||||
1M US L + 0.83%, 01/25/2022(a) | $ | 1,935 | $ | 1,946 | ||||
Series 1992-73, Class FC, | ||||||||
1M US L + 0.75%, 05/25/2022(a) | 4,394 | 4,426 | ||||||
Series 1992-91, Class F, | ||||||||
1M US L + 0.50%, 05/25/2022(a) | 15,394 | 15,241 | ||||||
Series 1992-89, Class FB, | ||||||||
1M US L + 0.50%, 06/25/2022(a) | 3,329 | 3,342 | ||||||
Series 1992-180, Class F, | ||||||||
1M US L + 1.15%, 10/25/2022(a) | 22,469 | 22,776 | ||||||
Series 1992-62, Class FA, | ||||||||
1M US L + 0.90%, 10/25/2022(a) | 61,992 | 61,865 | ||||||
Series 1992-52, Class FD, | ||||||||
1M US L + 0.02%, 09/25/2022(a) | 24,177 | 24,188 | ||||||
Series 1993-97, Class FA, | ||||||||
1M US L + 1.25%, 05/25/2023(a) | 7,019 | 7,151 | ||||||
Series 1993-27, Class FC, | ||||||||
1M US L + 0.90%, 08/25/2023(a) | 9,458 | 9,576 | ||||||
Series 1993-189, Class FB, | ||||||||
10Y US TI + -0.65%, 10/25/2023(a) | 17,039 | 16,785 | ||||||
Series 1994-3, Class FA, | ||||||||
1M US L + 0.65%, 03/25/2024(a) | 14,675 | 14,757 | ||||||
Series 1994-22, Class F, | ||||||||
1M US L + 1.20%, 01/25/2024(a) | 180,028 | 181,182 | ||||||
Series 1994-75, Class K, | ||||||||
7.000%, 04/25/2024 | 56,993 | 61,340 | ||||||
Series 1990-8, Class G, | ||||||||
6.000%, 01/25/2020 | 3,723 | 3,733 | ||||||
Series 2011-104, Class DA, | ||||||||
2.000%, 10/25/2021 | 71,474 | 70,793 | ||||||
Series 2003-49, Class YC, | ||||||||
4.000%, 06/25/2023 | 57,931 | 58,877 | ||||||
Series 2004-95, Class AK, | ||||||||
5.500%, 01/25/2025 | 49,600 | 51,458 | ||||||
Series 2006-22, Class CE, | ||||||||
4.500%, 08/25/2023 | 32,248 | 32,966 | ||||||
Series 2011-63, Class MV, | ||||||||
3.500%, 07/25/2024 | 41,296 | 41,225 | ||||||
Series 2011-66, Class QE, | ||||||||
2.000%, 07/25/2021 | 1,600 | 1,588 | ||||||
Series 2009-81, Class GC, | ||||||||
3.500%, 12/25/2019 | 7,856 | 7,841 | ||||||
Series 2009-81, Class GE, | ||||||||
3.500%, 12/25/2019 | 20,346 | 20,293 | ||||||
Series 2010-112, Class GA, | ||||||||
2.000%, 06/25/2021 | 11,860 | 11,787 | ||||||
Series 2010-95, Class BK, | ||||||||
1.500%, 02/25/2020 | 10,763 | 10,693 | ||||||
Series 2010-145, Class MA, | ||||||||
2.000%, 12/25/2020 | 1,694 | 1,683 | ||||||
Freddie Mac | ||||||||
Series 1991-1069, Class J, | ||||||||
6.950%, 04/15/2021 | 12,820 | 13,173 |
Principal Amount | Value (Note 2) | |||||||
Series 1991-1155, Class KZ, | ||||||||
7.000%, 10/15/2021 | $ | 17,933 | $ | 18,397 | ||||
Series 1993-1534, Class J, | ||||||||
1M US L + 0.90%, 06/15/2023(a) | 45,106 | 45,636 | ||||||
Series 1993-1584, Class L, | ||||||||
6.500%, 09/15/2023 | 22,528 | 23,807 | ||||||
Series 1993-21, Class F, | ||||||||
1M US L + 0.50%, 10/25/2023(a) | 51,577 | 52,010 | ||||||
Series 1993-1636, Class F, | ||||||||
1M US L + 0.65%, 11/15/2023(a) | 16,842 | 16,694 | ||||||
Series 1993-1632, Class FB, | ||||||||
1M US L + 1.20%, 11/15/2023(a) | 49,081 | 49,167 | ||||||
Series 1993-1628, Class LZ, | ||||||||
6.500%, 12/15/2023 | 14,603 | 15,385 | ||||||
Series 1994-1673, Class FB, | ||||||||
10Y US TI + -0.50%, 02/15/2024(a) | 18,652 | 18,649 | ||||||
Series 1994-1707, Class F, | ||||||||
1M US L + 0.70%, 03/15/2024(a) | 17,376 | 17,540 | ||||||
Series 1994-1744, Class FD, | ||||||||
1M US L + 1.98%, 08/15/2024(a) | 24,578 | 24,984 | ||||||
Series 1997-1983, Class Z, | ||||||||
6.500%, 12/15/2023 | 32,091 | 34,007 | ||||||
Series 2011-3872, Class ND, | ||||||||
2.000%, 12/15/2021 | 31,715 | 31,486 | ||||||
Series 2010-3737, Class NA, | ||||||||
3.500%, 06/15/2025 | 46,636 | 47,154 | ||||||
Series 2004-2877, Class AL, | ||||||||
5.000%, 10/15/2024 | 12,765 | 13,228 | ||||||
Series 2007-3288, Class HB, | ||||||||
4.500%, 03/15/2022 | 51 | 51 | ||||||
Series 2009-3575, Class EB, | ||||||||
4.000%, 09/15/2024 | 25,947 | 27,018 | ||||||
Ginnie Mae | ||||||||
Series 2008-46, Class AE, | ||||||||
4.250%, 05/16/2023 | 133 | 133 | ||||||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | ||||||||
(Cost $1,176,833) | 1,186,031 | |||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES (0.42%) | ||||||||
Freddie Mac Multifamily Structured Pass Through Certificates | ||||||||
Series 2010-K008, Class A1, | ||||||||
2.746%, 12/25/2019 | 21,934 | 21,914 | ||||||
Series 2011-K013, Class A1, | ||||||||
2.902%, 08/25/2020 | 45,615 | 45,617 | ||||||
Series 2017-J15L, Class AFL, | ||||||||
1M US L + 0.35%, 08/25/2025(a) | 65,733 | 65,938 |
42| April 30, 2019
ALPS | Smith Short Duration Bond Fund |
Statement of Investments | April 30, 2019 (Unaudited) |
Principal Amount | Value (Note 2) | |||||||
Series 2010-K006, Class A2, | ||||||||
4.251%, 01/25/2020 | $ | 19,846 | $ | 19,946 | ||||
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES | ||||||||
(Cost $152,147) | 153,415 | |||||||
MORTGAGE-BACKED SECURITIES (0.12%) | ||||||||
Fannie Mae | ||||||||
Series 2010, | ||||||||
3.810%, 12/01/2020 | 42,720 | 43,509 | ||||||
TOTAL MORTGAGE-BACKED SECURITIES | ||||||||
(Cost $42,836) | 43,509 | |||||||
CORPORATE BONDS (52.66%) | ||||||||
Aerospace & Defense (2.98%) | ||||||||
BAE Systems Holdings, Inc. | ||||||||
6.375%, 06/01/2019(b) | 420,000 | 421,109 | ||||||
Huntington Ingalls Industries, Inc. | ||||||||
5.000%, 11/15/2025(b) | 446,000 | 461,164 | ||||||
Rockwell Collins, Inc. | ||||||||
1.950%, 07/15/2019 | 222,000 | 221,638 | ||||||
TotalAerospace & Defense | 1,103,911 | |||||||
Auto Parts Manufacturing (0.06%) | ||||||||
American Axle & Manufacturing, Inc. | ||||||||
7.750%, 11/15/2019 | 22,000 | 22,454 | ||||||
Automobiles Manufacturing (2.54%) | ||||||||
Ford Motor Credit Co. LLC | ||||||||
2.597%, 11/04/2019 | 100,000 | 99,908 | ||||||
5.875%, 08/02/2021 | 250,000 | 261,711 | ||||||
3M US L + 0.93%, 11/04/2019(a) | 275,000 | 275,409 | ||||||
General Motors Financial Co., Inc. | ||||||||
3M US L + 0.93%, 04/13/2020(a) | 297,000 | 297,956 | ||||||
TotalAutomobiles Manufacturing | 934,984 | |||||||
Banks (10.18%) | ||||||||
AIB Group PLC | ||||||||
3M US L + 1.874%, 04/10/2025(a)(b) | 500,000 | 505,752 | ||||||
Associated Bank NA/Green Bay WI | ||||||||
3.500%, 08/13/2021 | 450,000 | 455,037 | ||||||
Citizens Bank NA | ||||||||
3M US L + 0.57%, 05/26/2020(a) | 252,000 | 252,508 | ||||||
Citizens Financial Group, Inc. | ||||||||
4.150%, 09/28/2022(b) | 100,000 | 102,161 | ||||||
Cooperatieve Rabobank UA | ||||||||
3.950%, 11/09/2022 | 250,000 | 254,786 | ||||||
Credit Suisse AG | ||||||||
5.400%, 01/14/2020 | 133,000 | 135,232 | ||||||
Danske Bank A/S | ||||||||
5.000%, 01/12/2022(b) | 450,000 | 462,991 | ||||||
5.375%, 01/12/2024(b) | 250,000 | 262,333 | ||||||
Discover Bank | ||||||||
7.000%, 04/15/2020 | 250,000 | 259,528 |
Principal Amount | Value (Note 2) | |||||||
First Tennessee Bank NA | ||||||||
2.950%, 12/01/2019 | $ | 313,000 | $ | 313,073 | ||||
SVB Financial Group | ||||||||
5.375%, 09/15/2020 | 300,000 | 310,173 | ||||||
US Bank NA | ||||||||
3.450%, 11/16/2021 | 250,000 | 255,726 | ||||||
Wells Fargo & Co. | ||||||||
2.625%, 07/22/2022 | 200,000 | 198,410 | ||||||
TotalBanks | 3,767,710 | |||||||
Cable & Satellite (1.76%) | ||||||||
Charter Communications Operating LLC / Charter Communications Operating Capital | ||||||||
3M US L + 1.65%, 02/01/2024(a) | 150,000 | 150,962 | ||||||
Comcast Corp. | ||||||||
3M US L + 0.33%, 10/01/2020(a) | 200,000 | 200,436 | ||||||
Sky, Ltd. | ||||||||
2.625%, 09/16/2019(b) | 200,000 | 199,812 | ||||||
Time Warner Cable LLC | ||||||||
5.000%, 02/01/2020 | 100,000 | 101,425 | ||||||
TotalCable & Satellite | 652,635 | |||||||
Casinos & Gaming (0.12%) | ||||||||
MGM Resorts International | ||||||||
5.250%, 03/31/2020 | 45,000 | 45,928 | ||||||
Chemicals (0.55%) | ||||||||
DowDuPont, Inc. | ||||||||
3.766%, 11/15/2020 | 100,000 | 101,634 | ||||||
International Flavors & Fragrances, Inc. | ||||||||
3.400%, 09/25/2020 | 100,000 | 100,647 | ||||||
TotalChemicals | 202,281 | |||||||
Commercial Finance (0.88%) | ||||||||
AerCap Ireland Capital DAC / AerCap Global Aviation Trust | ||||||||
3.750%, 05/15/2019 | 135,000 | 135,037 | ||||||
GATX Corp. | ||||||||
2.500%, 07/30/2019 | 190,000 | 189,777 | ||||||
TotalCommercial Finance | 324,814 | |||||||
Consumer Finance (1.58%) | ||||||||
Capital One Bank USA NA | ||||||||
8.800%, 07/15/2019 | 70,000 | 70,831 | ||||||
Synchrony Financial | ||||||||
4.375%, 03/19/2024 | 500,000 | 511,322 | ||||||
TotalConsumer Finance | 582,153 | |||||||
Diversified Banks (2.14%) | ||||||||
Bank of America Corp. | ||||||||
Series GMTN | ||||||||
3M US L + 0.66%, 07/21/2021(a) | 345,000 | 342,952 | ||||||
3M US L + 0.96%, 07/23/2024(a) | 40,000 | 40,301 | ||||||
JPMorgan Chase & Co. | ||||||||
4.950%, 03/25/2020 | 179,000 | 182,628 | ||||||
3M US L + 0.935%, 04/25/2023(a) | 225,000 | 224,048 | ||||||
TotalDiversified Banks | 789,929 |
43| April 30, 2019
ALPS | Smith Short Duration Bond Fund |
Statement of Investments | April 30, 2019 (Unaudited) |
Principal Amount | Value (Note 2) | |||||||
Electrical Equipment Manufacturing (1.16%) | ||||||||
Trimble, Inc. | ||||||||
4.750%, 12/01/2024 | $ | 318,000 | $ | 327,670 | ||||
Tyco Electronics Group SA | ||||||||
3M US L + 0.45%, 06/05/2020(a) | 100,000 | 100,192 | ||||||
TotalElectrical Equipment Manufacturing | 427,862 | |||||||
Entertainment Content (0.69%) | ||||||||
Fox Corp. | ||||||||
3.666%, 01/25/2022(b) | 250,000 | 255,281 | ||||||
Exploration & Production (2.83%) | ||||||||
Antero Resources Corp. | ||||||||
5.375%, 11/01/2021 | 230,000 | 232,588 | ||||||
Encana Corp. | ||||||||
6.500%, 05/15/2019 | 505,000 | 505,647 | ||||||
EQT Corp. | ||||||||
8.125%, 06/01/2019 | 110,000 | 110,425 | ||||||
Marathon Oil Corp. | ||||||||
2.700%, 06/01/2020 | 200,000 | 199,548 | ||||||
TotalExploration & Production | 1,048,208 | |||||||
Financial Services (3.52%) | ||||||||
Ameriprise Financial, Inc. | ||||||||
3.000%, 03/22/2022 | 250,000 | 251,077 | ||||||
Goldman Sachs Group, Inc. | ||||||||
Series GMTN | ||||||||
5.375%, 03/15/2020 | 150,000 | 153,307 | ||||||
Series D | ||||||||
6.000%, 06/15/2020 | 70,000 | 72,408 | ||||||
Morgan Stanley | ||||||||
2.750%, 05/19/2022 | 75,000 | 74,659 | ||||||
Series GMTN | ||||||||
5.500%, 01/26/2020 | 212,000 | 216,175 | ||||||
TD Ameritrade Holding Corp. | ||||||||
3M US L + 0.43%, 11/01/2021(a) | 200,000 | 200,757 | ||||||
USAA Capital Corp. | ||||||||
2.125%, 06/03/2019(b) | 330,000 | 329,855 | ||||||
TotalFinancial Services | 1,298,238 | |||||||
Food & Beverage (3.18%) | ||||||||
Campbell Soup Co. | ||||||||
3M US L + 0.63%, 03/15/2021(a) | 75,000 | 74,728 | ||||||
Conagra Brands, Inc. | ||||||||
3M US L + 0.75%, 10/22/2020(a) | 100,000 | 100,042 | ||||||
Molson Coors Brewing Co. | ||||||||
2.250%, 03/15/2020 | 295,000 | 293,560 | ||||||
Wm Wrigley Jr Co. | ||||||||
2.900%, 10/21/2019(b) | 707,000 | 707,282 | ||||||
TotalFood & Beverage | 1,175,612 | |||||||
Hardware (1.22%) | ||||||||
Dell, Inc. | ||||||||
5.875%, 06/15/2019 | 448,000 | 449,680 | ||||||
Health Care Facilities & Services (3.31%) | ||||||||
Cigna Corp. | ||||||||
3.400%, 09/17/2021(b) | 100,000 | 101,146 | ||||||
3M US L + 0.65%, 09/17/2021(a)(b) | 300,000 | 300,100 |
Principal Amount | Value (Note 2) | |||||||
Express Scripts, Inc. | ||||||||
7.250%, 06/15/2019 | $ | 75,000 | $ | 75,370 | ||||
HCA Healthcare, Inc. | ||||||||
6.250%, 02/15/2021 | 100,000 | 105,125 | ||||||
HCA, Inc. | ||||||||
4.750%, 05/01/2023 | 225,000 | 235,326 | ||||||
6.500%, 02/15/2020 | 200,000 | 205,318 | ||||||
Quest Diagnostics, Inc. | ||||||||
2.500%, 03/30/2020 | 200,000 | 199,339 | ||||||
TotalHealth Care Facilities & Services | 1,221,724 | |||||||
Integrated Oils (1.20%) | ||||||||
Cenovus Energy, Inc. | ||||||||
5.700%, 10/15/2019 | 436,538 | 441,608 | ||||||
Life Insurance (1.51%) | ||||||||
CNO Financial Group, Inc. | ||||||||
4.500%, 05/30/2020 | 550,000 | 558,250 | ||||||
Medical Equipment & Devices Manufacturing (0.19%) | ||||||||
Zimmer Biomet Holdings, Inc. | ||||||||
4.625%, 11/30/2019 | 70,000 | 70,677 | ||||||
Pharmaceuticals (1.84%) | ||||||||
AbbVie, Inc. | ||||||||
2.500%, 05/14/2020 | 150,000 | 149,540 | ||||||
Elanco Animal Health, Inc. | ||||||||
3.912%, 08/27/2021(b) | 218,000 | 221,816 | ||||||
4.272%, 08/28/2023(b) | 100,000 | 103,968 | ||||||
Takeda Pharmaceutical Co., Ltd. | ||||||||
3.800%, 11/26/2020(b) | 200,000 | 202,849 | ||||||
TotalPharmaceuticals | 678,173 | |||||||
Pipeline (3.43%) | ||||||||
Enable Midstream Partners LP | ||||||||
2.400%, 05/15/2019 | 192,000 | 191,967 | ||||||
Energy Transfer Operating LP | ||||||||
7.500%, 10/15/2020 | 330,000 | 351,129 | ||||||
Kinder Morgan, Inc. | ||||||||
3.050%, 12/01/2019 | 75,000 | 75,056 | ||||||
Midwest Connector Capital Co. LLC | ||||||||
3.625%, 04/01/2022(b) | 200,000 | 203,251 | ||||||
ONEOK Partners LP | ||||||||
3.800%, 03/15/2020 | 110,000 | 110,619 | ||||||
Plains All American Pipeline LP / PAA Finance Corp. | ||||||||
5.750%, 01/15/2020 | 329,000 | 334,935 | ||||||
TotalPipeline | 1,266,957 | |||||||
Power Generation (0.60%) | ||||||||
Emera US Finance LP | ||||||||
2.150%, 06/15/2019 | 221,000 | 220,764 | ||||||
Railroad (0.52%) | ||||||||
Canadian Pacific Railway Co. | ||||||||
7.250%, 05/15/2019 | 190,000 | 190,301 |
44| April 30, 2019
ALPS | Smith Short Duration Bond Fund |
Statement of Investments | April 30, 2019 (Unaudited) |
Principal Amount | Value (Note 2) | |||||||
Real Estate (1.13%) | ||||||||
Reckson Operating Partnership LP | ||||||||
7.750%, 03/15/2020 | $ | 400,000 | $ | 415,972 | ||||
Semiconductors (0.88%) | ||||||||
Microchip Technology, Inc. | ||||||||
3.922%, 06/01/2021(b) | 320,000 | 324,737 | ||||||
Supermarkets & Pharmacies (0.83%) | ||||||||
Kroger Co. | ||||||||
6.150%, 01/15/2020 | 300,000 | 306,921 | ||||||
Transportation & Logistics (0.92%) | ||||||||
Penske Truck Leasing Co. Lp / PTL Finance Corp. | ||||||||
3.050%, 01/09/2020(b) | 305,000 | 304,900 | ||||||
3.375%, 02/01/2022(b) | 33,000 | 33,188 | ||||||
TotalTransportation & Logistics | 338,088 | |||||||
Utilities (0.28%) | ||||||||
Exelon Corp. | ||||||||
5.150%, 12/01/2020 | 100,000 | 103,035 | ||||||
Wireless Telecommunications Services (0.33%) | ||||||||
AT&T, Inc. | ||||||||
3M US L + 0.75%, 06/01/2021(a) | 66,000 | 66,462 | ||||||
Sprint Communications, Inc. | ||||||||
7.000%, 08/15/2020 | 55,000 | 57,200 | ||||||
TotalWireless Telecommunications Services | 123,662 | |||||||
Wireline Telecommunications Services (0.30%) | ||||||||
CenturyLink, Inc. | ||||||||
Series V | ||||||||
5.625%, 04/01/2020 | 105,000 | 107,232 | ||||||
TOTAL CORPORATE BONDS | ||||||||
(Cost $19,298,322) | 19,449,781 | |||||||
GOVERNMENT BONDS (38.42%) | ||||||||
Sovereigns (38.42%) | ||||||||
U.S. Treasury Note | ||||||||
1.625%, 08/31/2019 | 185,000 | 184,476 | ||||||
2.500%, 02/28/2021 | 2,050,000 | 2,058,008 | ||||||
2.625%, 07/31/2020 | 4,139,000 | 4,153,551 | ||||||
2.625%, 07/15/2021 | 914,000 | 921,105 | ||||||
2.875%, 10/31/2020 | 6,818,000 | 6,873,929 | ||||||
TotalSovereigns | 14,191,069 | |||||||
TOTAL GOVERNMENT BONDS | ||||||||
(Cost $14,126,602) | 14,191,069 | |||||||
MUNICIPAL BONDS (0.90%) | ||||||||
Financing & Development (0.69%) | ||||||||
New Jersey Economic Development | ||||||||
Authority | ||||||||
4.197%, 06/15/2019 | 255,000 | 255,341 |
Principal Amount | Value (Note 2) | |||||||
States & Territories (0.21%) | ||||||||
State of Illinois | ||||||||
5.463%, 02/01/2020 | $ | 75,000 | $ | 76,318 | ||||
TOTAL MUNICIPAL BONDS | ||||||||
(Cost $331,478) | 331,659 |
7-Day Yield | Shares | Value (Note 2) | ||||||||||
SHORT TERM INVESTMENTS (0.35%) | ||||||||||||
Money Market Fund (0.35%) | ||||||||||||
Morgan Stanley Institutional Liquidity Funds - Government Portfolio | 2.326 | % | 129,252 | 129,252 | ||||||||
TOTAL SHORT TERM INVESTMENTS | ||||||||||||
(Cost $129,252) | 129,252 | |||||||||||
TOTAL INVESTMENTS (96.08%) | ||||||||||||
(Cost $35,257,470) | $ | 35,484,716 | ||||||||||
Other Assets In Excess Of Liabilities (3.92%) | 1,448,026 | |||||||||||
NET ASSETS (100.00%) | $ | 36,932,742 |
Investment Abbreviations:
LIBOR - London Interbank Offered Rate
Libor Rates:
1M US L - 1 Month LIBOR as of April 30, 2019 was 2.48%
3M US L - 3 Month LIBOR as of April 30, 2019 was 2.58%
10Y US TI - 10 Year Treasury Yield as of April 30, 2019 was 2.51%
(a) | Floating or variable rate security. The reference rate is described above. The rate in effect as of April 30, 2019 is based on the reference rate plus the displayed spread as of the security's last reset date. |
(b) | Security exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of April 30, 2019, the aggregate market value of those securities was $5,503,695, representing 14.90% of net assets. |
See Notes to Financial Statements.
45| April 30, 2019
ALPS | Smith Total Return Bond Fund |
Statement of Investments | April 30, 2019 (Unaudited) |
Principal Amount | Value (Note 2) | |||||||
COLLATERALIZED MORTGAGE OBLIGATIONS (21.21%) | ||||||||
Fannie Mae | ||||||||
Series 2011-104, Class KH, | ||||||||
2.000%, 03/25/2039 | $ | 25,507 | $ | 25,204 | ||||
Series 2012-96, Class CB, | ||||||||
1.500%, 04/25/2039 | 48,860 | 47,709 | ||||||
Series 2012-70, Class WC, | ||||||||
3.000%, 07/25/2042 | 100,000 | 97,825 | ||||||
Series 2012-94, Class KF, | ||||||||
1M US L + 0.35%, 05/25/2038(a) | 61,014 | 61,096 | ||||||
Series 2012-128, Class NP, | ||||||||
2.500%, 11/25/2042 | 24,999 | 23,423 | ||||||
Series 2012-149, Class KB, | ||||||||
3.000%, 01/25/2043 | 103,000 | 100,298 | ||||||
Series 2012-131, Class FG, | ||||||||
1M US L + 0.35%, 09/25/2042(a) | 34,525 | 33,883 | ||||||
Series 2012-129, Class HT, | ||||||||
2.000%, 12/25/2032 | 81,672 | 74,502 | ||||||
Series 2012-139, Class GB, | ||||||||
2.500%, 12/25/2042 | 210,538 | 170,668 | ||||||
Series 2012-152, Class PB, | ||||||||
3.500%, 01/25/2043 | 55,000 | 55,877 | ||||||
Series 2012-144, Class JT, | ||||||||
2.500%, 06/25/2042 | 30,877 | 29,446 | ||||||
Series 2013-13, Class WA, | ||||||||
2.500%, 07/25/2042 | 161,483 | 151,916 | ||||||
Series 2013-17, Class YM, | ||||||||
4.000%, 03/25/2033 | 36,566 | 37,753 | ||||||
Series 2013-40, Class KD, | ||||||||
1.750%, 04/25/2042 | 135,627 | 128,169 | ||||||
Series 2013-53, Class CV, | ||||||||
3.500%, 05/25/2030 | 103,458 | 105,110 | ||||||
Series 2013-52, Class GM, | ||||||||
5.000%, 06/25/2043 | 89,000 | 100,217 | ||||||
Series 2013-56, Class HB, | ||||||||
2.500%, 06/25/2043 | 40,000 | 39,394 | ||||||
Series 2013-72, Class YA, | ||||||||
3.000%, 06/25/2033 | 55,022 | 54,363 | ||||||
Series 2014-3, Class BM, | ||||||||
2.500%, 06/25/2043 | 50,000 | 47,542 | ||||||
Series 2014-26, Class YW, | ||||||||
3.500%, 04/25/2044 | 50,538 | 51,497 | ||||||
Series 2016-33, Class LE, | ||||||||
2.500%, 11/25/2033 | 105,503 | 104,520 | ||||||
Series 2016-85, Class BA, | ||||||||
2.500%, 11/25/2046 | 65,751 | 59,299 | ||||||
Series 2001-52, Class XZ, | ||||||||
6.500%, 10/25/2031 | 70,178 | 78,963 | ||||||
Series 2001-63, Class TC, | ||||||||
6.000%, 12/25/2031 | 42,880 | 47,263 | ||||||
Series 2001-68, Class PH, | ||||||||
6.000%, 12/25/2031 | 39,130 | 42,856 | ||||||
Series 2002-23, Class FA, | ||||||||
1M US L + 0.90%, 04/25/2032(a) | 81,961 | 83,896 | ||||||
Series 2002-44, Class FJ, | ||||||||
1M US L + 1.00%, 04/25/2032(a) | 105,212 | 105,003 |
Principal Amount | Value (Note 2) | |||||||
Series 2002-63, Class EZ, | ||||||||
6.000%, 10/25/2032 | $ | 20,727 | $ | 22,694 | ||||
Series 2002-60, Class FV, | ||||||||
1M US L + 1.00%, 04/25/2032(a) | 63,417 | 64,204 | ||||||
Series 2003-22, Class BZ, | ||||||||
6.000%, 04/25/2033 | 34,918 | 38,030 | ||||||
Series 2003-30, Class JQ, | ||||||||
5.500%, 04/25/2033 | 62,731 | 69,093 | ||||||
Series 2003-42, Class JH, | ||||||||
5.500%, 05/25/2033 | 111,463 | 120,650 | ||||||
Series 2003-46, Class PJ, | ||||||||
5.500%, 06/25/2033 | 47,856 | 52,302 | ||||||
Series 2003-76, Class EZ, | ||||||||
5.000%, 08/25/2033 | 61,821 | 67,112 | ||||||
Series 2003-64, Class ZC, | ||||||||
5.000%, 07/25/2033 | 27,954 | 30,074 | ||||||
Series 2003-64, Class JK, | ||||||||
3.500%, 07/25/2033 | 53,360 | 54,622 | ||||||
Series 2003-94, Class CE, | ||||||||
5.000%, 10/25/2033 | 30,738 | 32,413 | ||||||
Series 2003-71, Class HD, | ||||||||
5.500%, 08/25/2033 | 89,000 | 98,831 | ||||||
Series 2003-128, Class MF, | ||||||||
1M US L + 0.60%, 01/25/2034(a) | 80,469 | 80,277 | ||||||
Series 2003-131, Class CH, | ||||||||
5.500%, 01/25/2034 | 25,103 | 27,047 | ||||||
Series 2004-36, Class CB, | ||||||||
5.000%, 05/25/2034 | 138,000 | 151,077 | ||||||
Series 2004-68, Class LC, | ||||||||
5.000%, 09/25/2029 | 26,083 | 27,683 | ||||||
Series 2004-92, Class TB, | ||||||||
5.500%, 12/25/2034 | 84,256 | 93,595 | ||||||
Series 2005-3, Class CH, | ||||||||
5.250%, 02/25/2035 | 56,108 | 61,208 | ||||||
Series 2005-3, Class CP, | ||||||||
5.500%, 10/25/2034 | 1,614 | 1,619 | ||||||
Series 2005-17, Class EX, | ||||||||
5.250%, 03/25/2035 | 25,000 | 28,298 | ||||||
Series 2005-48, Class TD, | ||||||||
5.500%, 06/25/2035 | 126,000 | 138,929 | ||||||
Series 2005-29, Class ZA, | ||||||||
5.500%, 04/25/2035 | 64,223 | 70,939 | ||||||
Series 2005-68, Class BC, | ||||||||
5.250%, 06/25/2035 | 6,708 | 6,740 | ||||||
Series 2005-68, Class PG, | ||||||||
5.500%, 08/25/2035 | 78,396 | 85,035 | ||||||
Series 2005-62, Class JC, | ||||||||
5.000%, 05/25/2035 | 26,066 | 26,804 | ||||||
Series 2005-62, Class JE, | ||||||||
5.000%, 06/25/2035 | 13,943 | 14,381 | ||||||
Series 2005-59, Class DF, | ||||||||
1M US L + 0.20%, 05/25/2035(a) | 12,170 | 12,173 | ||||||
Series 2005-70, Class KP, | ||||||||
5.000%, 06/25/2035 | 40,000 | 43,948 | ||||||
Series 2005-79, Class DB, | ||||||||
5.500%, 09/25/2035 | 83,143 | 92,315 |
46| April 30, 2019
ALPS | Smith Total Return Bond Fund |
Statement of Investments | April 30, 2019 (Unaudited) |
Principal Amount | Value (Note 2) | |||||||
Series 2005-84, Class XM, | ||||||||
5.750%, 10/25/2035 | $ | 75,534 | $ | 82,259 | ||||
Series 2005-99, Class ZA, | ||||||||
5.500%, 12/25/2035 | 93,962 | 110,408 | ||||||
Series 2005-110, Class MP, | ||||||||
5.500%, 12/25/2035 | 20,554 | 22,113 | ||||||
Series 2005-122, Class PY, | ||||||||
6.000%, 01/25/2036 | 280,000 | 321,169 | ||||||
Series 2006-46, Class UD, | ||||||||
5.500%, 06/25/2036 | 28,000 | 32,400 | ||||||
Series 2006-71, Class ZH, | ||||||||
6.000%, 07/25/2036 | 11,765 | 13,136 | ||||||
Series 2009-68, Class FD, | ||||||||
1M US L + 1.25%, 09/25/2039(a) | 52,769 | 52,802 | ||||||
Series 2007-30, Class MB, | ||||||||
4.250%, 04/25/2037 | 73,066 | 76,706 | ||||||
Series 2008-18, Class FA, | ||||||||
1M US L + 0.90%, 03/25/2038(a) | 101,215 | 101,888 | ||||||
Series 2008-46, Class LA, | ||||||||
5.500%, 06/25/2038 | 26,377 | 28,105 | ||||||
Series 2009-3, Class JK, | ||||||||
5.000%, 01/25/2049 | 59,502 | 59,857 | ||||||
Series 2010-9, Class ME, | ||||||||
5.000%, 02/25/2040 | 146,000 | 163,897 | ||||||
Series 2010-45, Class WD, | ||||||||
5.000%, 05/25/2040 | 120,000 | 142,676 | ||||||
Series 2010-64, Class DM, | ||||||||
5.000%, 06/25/2040 | 89,594 | 95,374 | ||||||
Series 2010-58, Class FY, | ||||||||
1M US L + 0.73%, 06/25/2040(a) | 74,660 | 75,732 | ||||||
Series 2010-68, Class WB, | ||||||||
4.500%, 07/25/2040 | 35,000 | 40,735 | ||||||
Freddie Mac | ||||||||
Series 1990-165, Class K, | ||||||||
6.500%, 09/15/2021 | 173 | 174 | ||||||
Series 2002-2430, Class WF, | ||||||||
6.500%, 03/15/2032 | 18,863 | 21,292 | ||||||
Series 1994-1665, Class KZ, | ||||||||
6.500%, 01/15/2024 | 12,983 | 13,770 | ||||||
Series 1996-1863, Class Z, | ||||||||
6.500%, 07/15/2026 | 27,441 | 28,988 | ||||||
Series 1998-2035, Class PC, | ||||||||
6.950%, 03/15/2028 | 11,752 | 12,869 | ||||||
Series 1998-2060, Class Z, | ||||||||
6.500%, 05/15/2028 | 26,055 | 28,620 | ||||||
Series 1999-2137, Class TH, | ||||||||
6.500%, 03/15/2029 | 13,807 | 15,175 | ||||||
Series 1999-2141, Class FD, | ||||||||
1M US L + 0.35%, 04/15/2029(a) | 70,100 | 68,445 | ||||||
Series 1999-2154, Class PL, | ||||||||
6.500%, 05/15/2029 | 17,260 | 19,098 | ||||||
Series 2000-2224, Class CB, | ||||||||
8.000%, 03/15/2030 | 11,124 | 12,912 | ||||||
Series 2001-2279, Class Z, | ||||||||
6.000%, 01/15/2031 | 29,484 | 31,824 |
Principal Amount | Value (Note 2) | |||||||
Series 2001-2274, Class ZM, | ||||||||
6.500%, 01/15/2031 | $ | 22,261 | $ | 24,534 | ||||
Series 2002-2433, Class FA, | ||||||||
1M US L + 0.95%, 02/15/2032(a) | 74,904 | 76,823 | ||||||
Series 2010-3704, Class DC, | ||||||||
4.000%, 11/15/2036 | 59,756 | 60,881 | ||||||
Series 2011-3799, Class GK, | ||||||||
2.750%, 01/15/2021 | 1,140 | 1,138 | ||||||
Series 2011-3790, Class AP, | ||||||||
4.500%, 01/15/2037 | 9,440 | 9,589 | ||||||
Series 2011-3807, Class WF, | ||||||||
1M US L + 0.55%, 08/15/2038(a) | 64,365 | 64,669 | ||||||
Series 2011-3857, Class ZP, | ||||||||
5.000%, 05/15/2041 | 164,682 | 189,947 | ||||||
Series 2011-3959, Class MB, | ||||||||
4.500%, 11/15/2041 | 44,199 | 48,020 | ||||||
Series 2011-3970, Class HA, | ||||||||
3.000%, 02/15/2026 | 44,024 | 44,233 | ||||||
Series 2012-4001, Class FM, | ||||||||
1M US L + 0.50%, 02/15/2042(a) | 34,089 | 33,644 | ||||||
Series 2012-3997, Class EB, | ||||||||
3.500%, 12/15/2041 | 94,654 | 96,173 | ||||||
Series 2012-3997, Class EC, | ||||||||
3.500%, 02/15/2042 | 89,000 | 91,658 | ||||||
Series 2012-4020, Class PG, | ||||||||
2.500%, 03/15/2027 | 40,983 | 40,736 | ||||||
Series 2012-4037, Class CA, | ||||||||
3.000%, 04/15/2027 | 74,528 | 75,156 | ||||||
Series 2012-4068, Class PE, | ||||||||
3.000%, 06/15/2042 | 224,000 | 217,194 | ||||||
Series 2012-4075, Class PB, | ||||||||
3.000%, 07/15/2042 | 42,000 | 42,290 | ||||||
Series 2012-4102, Class DA, | ||||||||
3.000%, 08/15/2041 | 217,285 | 210,436 | ||||||
Series 2012-4116, Class UA, | ||||||||
2.500%, 01/15/2042 | 98,833 | 89,055 | ||||||
Series 2013-4160, Class HB, | ||||||||
2.500%, 12/15/2032 | 55,823 | 53,368 | ||||||
Series 2013-4176, Class YD, | ||||||||
3.000%, 03/15/2043 | 50,000 | 48,611 | ||||||
Series 2016-4594, Class JD, | ||||||||
3.000%, 12/15/2042 | 31,000 | 29,625 | ||||||
Series 2016-4604, Class CG, | ||||||||
2.500%, 06/15/2046 | 43,973 | 41,816 | ||||||
Series 2018-4767, Class Z, | ||||||||
3.000%, 12/15/2047 | 32,103 | 28,381 | ||||||
Series 2018-4796, Class A, | ||||||||
3.000%, 10/15/2047 | 73,277 | 72,987 | ||||||
Series 2010-3735, Class AL, | ||||||||
1.500%, 10/15/2020 | 24,357 | 24,127 | ||||||
Series 2002-2470, Class EF, | ||||||||
1M US L + 1.00%, 03/15/2032(a) | 135,536 | 137,033 | ||||||
Series 2002-2513, Class AF, | ||||||||
1M US L + 1.00%, 02/15/2032(a) | 92,854 | 93,855 | ||||||
Series 2002-2535, Class AW, | ||||||||
5.500%, 12/15/2032 | 25,030 | 27,590 |
47| April 30, 2019
ALPS | Smith Total Return Bond Fund |
Statement of Investments | April 30, 2019 (Unaudited) |
Principal Amount | Value (Note 2) | |||||||
Series 2003-2557, Class HL, | ||||||||
5.300%, 01/15/2033 | $ | 63,754 | $ | 69,730 | ||||
Series 2003-2557, Class WF, | ||||||||
1M US L + 0.40%, 01/15/2033(a) | 60,758 | 59,134 | ||||||
Series 2003-2568, Class D, | ||||||||
5.500%, 02/15/2033 | 31,158 | 33,818 | ||||||
Series 2003-2587, Class FW, | ||||||||
1M US L + 0.47%, 03/15/2033(a) | 88,323 | 86,987 | ||||||
Series 2003-2624, Class QH, | ||||||||
5.000%, 06/15/2033 | 15,636 | 16,831 | ||||||
Series 2003-2631, Class DB, | ||||||||
5.000%, 06/15/2033 | 80,000 | 89,925 | ||||||
Series 2003-2626, Class ZX, | ||||||||
5.000%, 06/15/2033 | 166,367 | 194,192 | ||||||
Series 2003-2647, Class A, | ||||||||
3.250%, 04/15/2032 | 75,597 | 77,185 | ||||||
Series 2003-2717, Class LH, | ||||||||
5.500%, 12/15/2033 | 13,732 | 14,859 | ||||||
Series 2004-2768, Class PW, | ||||||||
4.250%, 03/15/2034 | 53,216 | 55,915 | ||||||
Series 2004-2802, Class OH, | ||||||||
6.000%, 05/15/2034 | 17,851 | 19,322 | ||||||
Series 2005-2953, Class PG, | ||||||||
5.500%, 03/15/2035 | 41,658 | 46,085 | ||||||
Series 2005-2996, Class GX, | ||||||||
5.500%, 06/15/2035 | 43,000 | 48,909 | ||||||
Series 2005-3033, Class WY, | ||||||||
5.500%, 09/15/2035 | 69,427 | 76,818 | ||||||
Series 2005-3059, Class ZM, | ||||||||
5.000%, 02/15/2035 | 85,361 | 92,178 | ||||||
Series 2006-3123, Class HT, | ||||||||
5.000%, 03/15/2026 | 25,288 | 26,484 | ||||||
Series 2006-3148, Class CY, | ||||||||
6.000%, 04/15/2036 | 42,074 | 47,246 | ||||||
Series 2006-3237, Class CD, | ||||||||
5.500%, 09/15/2036 | 94,000 | 103,306 | ||||||
Series 2006-3237, Class CE, | ||||||||
5.500%, 11/15/2036 | 59,000 | 68,857 | ||||||
Series 2006-3249, Class CB, | ||||||||
4.250%, 12/15/2036 | 73,902 | 78,576 | ||||||
Series 2007-3279, Class FB, | ||||||||
1M US L + 0.32%, 02/15/2037(a) | 90,340 | 89,083 | ||||||
Series 2007-3361, Class AF, | ||||||||
1M US L + 0.35%, 11/15/2036(a) | 61,952 | 60,848 | ||||||
Series 2009-3549, Class FA, | ||||||||
1M US L + 1.20%, 07/15/2039(a) | 36,933 | 37,769 | ||||||
Series 2010-3620, Class EL, | ||||||||
4.000%, 01/15/2030 | 71,812 | 74,766 | ||||||
Ginnie Mae | ||||||||
Series 2009-69, Class PH, | ||||||||
5.500%, 08/16/2039 | 82,000 | 98,078 | ||||||
Series 2004-1, Class TE, | ||||||||
5.000%, 06/20/2033 | 59,828 | 65,104 | ||||||
Series 2004-26, Class ED, | ||||||||
5.500%, 04/16/2034 | 71,905 | 78,495 |
Principal Amount | Value (Note 2) | |||||||
Series 2004-87, Class BC, | ||||||||
4.500%, 10/20/2034 | $ | 33,052 | $ | 34,460 | ||||
Series 2005-3, Class QB, | ||||||||
5.000%, 01/16/2035 | 270,339 | 288,294 | ||||||
Series 2005-13, Class AE, | ||||||||
5.000%, 09/20/2034 | 26,085 | 26,880 | ||||||
Series 2005-13, Class BE, | ||||||||
5.000%, 09/20/2034 | 28,546 | 29,229 | ||||||
Series 2005-13, Class BG, | ||||||||
5.000%, 02/20/2035 | 63,000 | 68,744 | ||||||
Series 2005-45, Class BF, | ||||||||
1M US L + 0.30%, 06/20/2035(a) | 53,926 | 52,912 | ||||||
Series 2009-15, Class FM, | ||||||||
1M US L + 1.04%, 03/20/2039(a) | 81,255 | 83,287 | ||||||
Series 2009-55, Class FN, | ||||||||
1M US L + 1.00%, 07/20/2039(a) | 59,522 | 61,049 | ||||||
Series 2009-24, Class WB, | ||||||||
5.000%, 03/20/2039 | 144,000 | 157,464 | ||||||
Series 2011-H02, Class BA, | ||||||||
4.450%, 02/20/2061(a) | 56,846 | 57,542 | ||||||
Series 2009-52, Class PA, | ||||||||
5.000%, 04/16/2039 | 18,188 | 18,230 | ||||||
Series 2008-58, Class PE, | ||||||||
5.500%, 07/16/2038 | 29,000 | 32,455 | ||||||
Series 2008-76, Class QE, | ||||||||
5.750%, 09/20/2038 | 58,000 | 68,402 | ||||||
Series 2012-84, Class YC, | ||||||||
2.500%, 07/20/2042 | 20,000 | 18,914 | ||||||
Series 2007-7, Class PG, | ||||||||
5.000%, 02/16/2037 | 32,751 | 35,373 | ||||||
Series 2007-40, Class FY, | ||||||||
1M US L + 0.33%, 07/16/2037(a) | 61,231 | 60,374 | ||||||
Series 2008-47, Class ML, | ||||||||
5.250%, 06/16/2038 | 43,000 | 47,246 | ||||||
Series 2008-49, Class PB, | ||||||||
4.750%, 06/20/2038 | 66,038 | 69,898 | ||||||
Series 2011-97, Class WA, | ||||||||
6.130%, 11/20/2038(a) | 55,753 | 62,485 | ||||||
Series 2016-H19, Class FE, | ||||||||
1M US L + 0.37%, 06/20/2061(a) | 4,255 | 4,253 | ||||||
Series 2017-56, Class AZ, | ||||||||
3.000%, 04/20/2047 | 101,929 | 94,609 | ||||||
Series 2010-14, Class A, | ||||||||
4.500%, 06/16/2039 | 32,495 | 33,726 | ||||||
Series 2010-24, Class MQ, | ||||||||
4.250%, 12/20/2038 | 927 | 923 | ||||||
Series 2010-111, Class FA, | ||||||||
1M US L + 0.35%, 09/20/2040(a) | 83,258 | 81,772 | ||||||
Series 2010-130, Class PE, | ||||||||
3.500%, 08/16/2039 | 56,960 | 57,458 | ||||||
Series 2010-151, Class DQ, | ||||||||
4.000%, 03/20/2038 | 64,821 | 65,101 | ||||||
Series 2011-66, Class UA, | ||||||||
4.000%, 05/16/2041 | 144,466 | 151,071 | ||||||
Series 2011-111, Class CD, | ||||||||
4.000%, 12/20/2039 | 87,824 | 88,366 |
48| April 30, 2019
ALPS | Smith Total Return Bond Fund
Statement of Investments | April 30, 2019 (Unaudited) |
Principal Amount | Value (Note 2) | |||||||
Series 2012-12, Class NA, | ||||||||
2.500%, 05/20/2038 | $ | 19,894 | $ | 19,843 | ||||
Series 2012-17, Class KX, | ||||||||
3.500%, 07/20/2039 | 22,000 | 22,244 | ||||||
Series 2012-31, Class QJ, | ||||||||
3.000%, 12/20/2039 | 17,502 | 17,474 | ||||||
Series 2012-68, Class GE, | ||||||||
3.000%, 05/20/2042 | 25,000 | 25,284 | ||||||
Series 2013-22, Class GB, | ||||||||
2.500%, 08/20/2042 | 70,000 | 62,383 | ||||||
Series 2013-69, Class NA, | ||||||||
2.000%, 09/20/2042 | 208,498 | 188,547 | ||||||
Series 2013-99, Class MF, | ||||||||
1M US L + 0.30%, 07/20/2043(a) | 95,197 | 94,698 | ||||||
Series 2014-53, Class JM, | ||||||||
7.125%, 04/20/2039(a) | 563,385 | 630,997 | ||||||
Series 2016-120, Class KA, | ||||||||
2.000%, 09/20/2046 | 33,036 | 33,155 | ||||||
Series 2019-13, Class WG, | ||||||||
4.000%, 12/20/2048 | 284,186 | 287,740 | ||||||
Series 2005-49, Class B, | ||||||||
06/20/2035 | 49,463 | 54,991 | ||||||
Series 2008-60, Class JN, | ||||||||
07/20/2038 | 79,544 | 87,434 | ||||||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | ||||||||
(Cost $12,047,887) | 12,401,585 | |||||||
CORPORATE BONDS (47.33%) | ||||||||
Aerospace & Defense (2.63%) | ||||||||
BAE Systems Holdings, Inc. | ||||||||
6.375%, 06/01/2019(b) | 534,000 | 535,410 | ||||||
Huntington Ingalls Industries, Inc. | ||||||||
5.000%, 11/15/2025(b) | 641,000 | 662,794 | ||||||
Precision Castparts Corp. | ||||||||
3.250%, 06/15/2025 | 115,000 | 117,562 | ||||||
Rockwell Collins, Inc. | ||||||||
1.950%, 07/15/2019 | 222,000 | 221,638 | ||||||
TotalAerospace & Defense | 1,537,404 | |||||||
Auto Parts Manufacturing (0.05%) | ||||||||
American Axle & Manufacturing, Inc. | ||||||||
7.750%, 11/15/2019 | 27,000 | 27,557 | ||||||
Automobiles Manufacturing (2.01%) | ||||||||
Ford Motor Credit Co. LLC | ||||||||
2.597%, 11/04/2019 | 100,000 | 99,908 | ||||||
5.875%, 08/02/2021 | 350,000 | 366,396 | ||||||
3M US L + 0.93%, 11/04/2019(a) | 425,000 | 425,632 | ||||||
General Motors Financial Co., Inc. | ||||||||
3M US L + 0.93%, 04/13/2020(a) | 286,000 | 286,920 | ||||||
TotalAutomobiles Manufacturing | 1,178,856 | |||||||
Banks (4.92%) | ||||||||
Associated Bank NA/Green Bay WI | ||||||||
3.500%, 08/13/2021 | 300,000 | 303,358 |
Principal Amount | Value (Note 2) | |||||||
Citizens Financial Group, Inc. | ||||||||
4.150%, 09/28/2022(b) | $ | 419,000 | $ | 428,057 | ||||
Cooperatieve Rabobank UA | ||||||||
3.950%, 11/09/2022 | 250,000 | 254,786 | ||||||
Credit Suisse AG | ||||||||
5.400%, 01/14/2020 | 257,000 | 261,312 | ||||||
Danske Bank A/S | ||||||||
5.000%, 01/12/2022(b) | 450,000 | 462,992 | ||||||
5.375%, 01/12/2024(b) | 250,000 | 262,333 | ||||||
SVB Financial Group | ||||||||
5.375%, 09/15/2020 | 430,000 | 444,581 | ||||||
UniCredit SpA | ||||||||
7.296%, 04/02/2034(a)(b) | 250,000 | 255,299 | ||||||
Wells Fargo & Co. | ||||||||
2.625%, 07/22/2022 | 200,000 | 198,410 | ||||||
TotalBanks | 2,871,128 | |||||||
Biotechnology (0.09%) | ||||||||
Celgene Corp. | ||||||||
3.250%, 08/15/2022 | 55,000 | 55,476 | ||||||
Cable & Satellite (1.40%) | ||||||||
Charter Communications Operating LLC / Charter Communications Operating Capital | ||||||||
4.908%, 07/23/2025 | 155,000 | 164,548 | ||||||
3M US L + 1.65%, 02/01/2024(a) | 300,000 | 301,924 | ||||||
Cox Communications, Inc. | ||||||||
4.700%, 12/15/2042(b) | 375,000 | 347,511 | ||||||
TotalCable & Satellite | 813,983 | |||||||
Casinos & Gaming (0.10%) | ||||||||
MGM Resorts International | ||||||||
5.250%, 03/31/2020 | 55,000 | 56,134 | ||||||
Chemicals (0.37%) | ||||||||
DowDuPont, Inc. | ||||||||
4.725%, 11/15/2028 | 200,000 | 218,249 | ||||||
Commercial Finance (0.72%) | ||||||||
AerCap Ireland Capital DAC / AerCap Global Aviation Trust | ||||||||
3.750%, 05/15/2019 | 165,000 | 165,045 | ||||||
GATX Corp. | ||||||||
2.500%, 07/30/2019 | 260,000 | 259,695 | ||||||
TotalCommercial Finance | 424,740 | |||||||
Communications Equipment (0.37%) | ||||||||
Apple, Inc. | ||||||||
3.000%, 11/13/2027 | 220,000 | 218,344 | ||||||
Consumer Finance (1.13%) | ||||||||
Ally Financial, Inc. | ||||||||
3.750%, 11/18/2019 | 100,000 | 100,375 | ||||||
Capital One Bank USA NA | ||||||||
8.800%, 07/15/2019 | 35,000 | 35,415 |
49| April 30, 2019
ALPS | Smith Total Return Bond Fund
Statement of Investments | April 30, 2019 (Unaudited) |
Principal Amount | Value (Note 2) | |||||||
Synchrony Financial | ||||||||
5.150%, 03/19/2029 | $ | 500,000 | $ | 517,461 | ||||
TotalConsumer Finance | 653,251 | |||||||
Diversified Banks (1.55%) | ||||||||
Bank of America Corp. | ||||||||
3M US L + 1.04%, 12/20/2028(a) | 450,000 | 442,310 | ||||||
Citigroup, Inc. | ||||||||
4.400%, 06/10/2025 | 250,000 | 261,095 | ||||||
JPMorgan Chase & Co. | ||||||||
3M US L + 0.935%, 04/25/2023(a) | 100,000 | 99,577 | ||||||
Royal Bank of Scotland Group PLC | ||||||||
6.400%, 10/21/2019 | 100,000 | 101,609 | ||||||
TotalDiversified Banks | 904,591 | |||||||
Electrical Equipment Manufacturing (1.88%) | ||||||||
Amphenol Corp. | ||||||||
4.350%, 06/01/2029 | 250,000 | 266,599 | ||||||
Trimble, Inc. | ||||||||
4.750%, 12/01/2024 | 808,000 | 832,570 | ||||||
TotalElectrical Equipment Manufacturing | 1,099,169 | |||||||
Entertainment Content (0.70%) | ||||||||
Fox Corp. | ||||||||
4.030%, 01/25/2024(b) | 250,000 | 260,064 | ||||||
Warner Media LLC | ||||||||
3.800%, 02/15/2027 | 150,000 | 151,015 | ||||||
TotalEntertainment Content | 411,079 | |||||||
Exploration & Production (2.10%) | ||||||||
Antero Resources Corp. | ||||||||
5.375%, 11/01/2021 | 330,000 | 333,713 | ||||||
Encana Corp. | ||||||||
6.500%, 05/15/2019 | 485,000 | 485,622 | ||||||
EQT Corp. | ||||||||
8.125%, 06/01/2019 | 110,000 | 110,425 | ||||||
Marathon Oil Corp. | ||||||||
2.700%, 06/01/2020 | 300,000 | 299,322 | ||||||
TotalExploration & Production | 1,229,082 | |||||||
Financial Services (2.37%) | ||||||||
Bank of New York Mellon Corp. | ||||||||
3M US L + 1.05%, 10/30/2023(a) | 264,000 | 268,210 | ||||||
E*TRADE Financial Corp. | ||||||||
4.500%, 06/20/2028 | 130,000 | 133,008 | ||||||
Goldman Sachs Group, Inc. | ||||||||
3M US L + 0.99%, 07/24/2023(a) | 100,000 | 99,177 | ||||||
3M US L + 1.158%, 04/23/2029(a) | 460,000 | 457,237 | ||||||
Morgan Stanley | ||||||||
2.750%, 05/19/2022 | 75,000 | 74,659 | ||||||
Series GMTN | ||||||||
5.500%, 01/26/2020 | 248,000 | 252,885 | ||||||
TD Ameritrade Holding Corp. | ||||||||
3M US L + 0.43%, 11/01/2021(a) | 100,000 | 100,379 | ||||||
TotalFinancial Services | 1,385,555 | |||||||
Food & Beverage (4.18%) | ||||||||
Anheuser-Busch InBev Worldwide, Inc. | ||||||||
5.550%, 01/23/2049 | 700,000 | 778,299 |
Principal Amount | Value (Note 2) | |||||||
Campbell Soup Co. | ||||||||
3.800%, 08/02/2042 | $ | 300,000 | $ | 246,622 | ||||
4.150%, 03/15/2028 | 50,000 | 50,262 | ||||||
Mars, Inc. | ||||||||
3.600%, 04/01/2034(b) | 500,000 | 500,076 | ||||||
3.950%, 04/01/2049(b) | 250,000 | 247,519 | ||||||
Molson Coors Brewing Co. | ||||||||
1.450%, 07/15/2019 | 50,000 | 49,875 | ||||||
2.250%, 03/15/2020 | 100,000 | 99,512 | ||||||
Wm Wrigley Jr Co. | ||||||||
2.900%, 10/21/2019(b) | 473,000 | 473,188 | ||||||
TotalFood & Beverage | 2,445,353 | |||||||
Health Care Facilities & Services (4.18%) | ||||||||
Cigna Corp. | ||||||||
4.900%, 12/15/2048(b) | 450,000 | 455,967 | ||||||
3M US L + 0.65%,09/17/2021(a)(b) | 120,000 | 120,040 | ||||||
Express Scripts Holding Co. | ||||||||
4.500%, 02/25/2026 | 450,000 | 470,757 | ||||||
Express Scripts, Inc. | ||||||||
7.250%, 06/15/2019 | 100,000 | 100,494 | ||||||
HCA Healthcare, Inc. | ||||||||
6.250%, 02/15/2021 | 200,000 | 210,250 | ||||||
HCA, Inc. | ||||||||
4.500%, 02/15/2027 | 180,000 | 185,055 | ||||||
5.250%, 04/15/2025 | 550,000 | 589,827 | ||||||
6.500%, 02/15/2020 | 300,000 | 307,977 | ||||||
TotalHealth Care Facilities & Services | 2,440,367 | |||||||
Integrated Oils (1.18%) | ||||||||
Cenovus Energy, Inc. | ||||||||
5.700%, 10/15/2019 | 682,692 | 690,620 | ||||||
Life Insurance (1.39%) | ||||||||
CNO Financial Group, Inc. | ||||||||
4.500%, 05/30/2020 | 800,000 | 812,000 | ||||||
Pharmaceuticals (0.71%) | ||||||||
AbbVie, Inc. | ||||||||
3.600%, 05/14/2025 | 100,000 | 100,702 | ||||||
Elanco Animal Health, Inc. | ||||||||
4.272%, 08/28/2023(b) | 100,000 | 103,968 | ||||||
4.900%, 08/28/2028(b) | 200,000 | 212,104 | ||||||
TotalPharmaceuticals | 416,774 | |||||||
Pipeline (4.28%) | ||||||||
Andeavor Logistics LP / Tesoro Logistics Finance Corp. | ||||||||
5.250%, 01/15/2025 | 300,000 | 315,119 | ||||||
Enable Midstream Partners LP | ||||||||
2.400%, 05/15/2019 | 277,000 | 276,953 | ||||||
Energy Transfer LP | ||||||||
4.250%, 03/15/2023 | 150,000 | 154,049 | ||||||
Energy Transfer Operating LP | ||||||||
6.250%, 04/15/2049 | 400,000 | 442,768 | ||||||
7.500%, 10/15/2020 | 220,000 | 234,086 |
50| April 30, 2019
ALPS | Smith Total Return Bond Fund
Statement of Investments | April 30, 2019 (Unaudited) |
Principal Amount | Value (Note 2) | |||||||
Kinder Morgan, Inc. | ||||||||
3.050%, 12/01/2019 | $ | 90,000 | $ | 90,068 | ||||
Midwest Connector Capital Co. LLC | ||||||||
3.900%, 04/01/2024(b) | 300,000 | 307,336 | ||||||
ONEOK Partners LP | ||||||||
3.800%, 03/15/2020 | 165,000 | 165,928 | ||||||
5.000%, 09/15/2023 | 55,000 | 58,387 | ||||||
Plains All American Pipeline LP / PAA Finance Corp. | ||||||||
5.750%, 01/15/2020 | 441,000 | 448,956 | ||||||
TotalPipeline | 2,493,650 | |||||||
Power Generation (0.03%) | ||||||||
Exelon Generation Co. LLC | ||||||||
5.200%, 10/01/2019 | 20,000 | 20,166 | ||||||
Real Estate (0.89%) | ||||||||
American Tower Corp. | ||||||||
5.900%, 11/01/2021 | 100,000 | 107,170 | ||||||
Reckson Operating Partnership LP | ||||||||
7.750%, 03/15/2020 | 400,000 | 415,972 | ||||||
TotalReal Estate | 523,142 | |||||||
Retail - Consumer Staples (0.26%) | ||||||||
Sysco Corp. | ||||||||
3.300%, 07/15/2026 | 155,000 | 154,233 | ||||||
Semiconductors (0.80%) | ||||||||
Microchip Technology, Inc. | ||||||||
3.922%, 06/01/2021(b) | 460,000 | 466,810 | ||||||
Software & Services (0.86%) | ||||||||
IHS Markit, Ltd. | ||||||||
4.250%, 05/01/2029 | 500,000 | 500,860 | ||||||
Supermarkets & Pharmacies (1.59%) | ||||||||
Kroger Co. | ||||||||
2.650%, 10/15/2026 | 255,000 | 237,199 | ||||||
4.500%, 01/15/2029 | 250,000 | 260,270 | ||||||
6.150%, 01/15/2020 | 176,000 | 180,060 | ||||||
Series GMTN | ||||||||
1.500%, 09/30/2019 | 249,000 | 247,773 | ||||||
TotalSupermarkets & Pharmacies | 925,302 | |||||||
Transportation & Logistics (0.99%) | ||||||||
Penske Truck Leasing Co. Lp / PTL Finance Corp. | ||||||||
2.500%, 06/15/2019(b) | 204,000 | 203,869 | ||||||
3.050%, 01/09/2020(b) | 330,000 | 329,892 | ||||||
3.375%, 02/01/2022(b) | 47,000 | 47,268 | ||||||
TotalTransportation & Logistics | 581,029 | |||||||
Utilities (0.88%) | ||||||||
American Water Capital Corp. | ||||||||
3.750%, 09/01/2028 | 150,000 | 155,019 | ||||||
Exelon Corp. | ||||||||
3.950%, 06/15/2025 | 100,000 | 104,057 | ||||||
5.150%, 12/01/2020 | 100,000 | 103,035 |
Principal Amount | Value (Note 2) | |||||||
Oklahoma Gas & Electric Co. | ||||||||
3.800%, 08/15/2028 | $ | 150,000 | $ | 152,596 | ||||
TotalUtilities | 514,707 | |||||||
Wireless Telecommunications Services (2.36%) | ||||||||
AT&T, Inc. | ||||||||
4.350%, 03/01/2029 | 250,000 | 258,697 | ||||||
4.800%, 06/15/2044 | 240,000 | 240,663 | ||||||
4.850%, 03/01/2039 | 250,000 | 256,161 | ||||||
3M US L + 0.75%, 06/01/2021(a) | 100,000 | 100,701 | ||||||
Sprint Capital Corp. | ||||||||
6.900%, 05/01/2019 | 100,000 | 100,000 | ||||||
Sprint Communications, Inc. | ||||||||
7.000%, 08/15/2020 | 355,000 | 369,200 | ||||||
Verizon Communications, Inc. | ||||||||
4.016%, 12/03/2029(b) | 56,000 | 58,519 | ||||||
TotalWireless Telecommunications Services | 1,383,941 | |||||||
Wireline Telecommunications Services (0.36%) | ||||||||
CenturyLink, Inc. | ||||||||
Series V | ||||||||
5.625%, 04/01/2020 | 205,000 | 209,356 | ||||||
TOTAL CORPORATE BONDS | ||||||||
(Cost $27,175,571) | 27,662,908 | |||||||
GOVERNMENT BONDS (30.33%) | ||||||||
Sovereigns (30.33%) | ||||||||
U.S. Treasury Bond | ||||||||
2.625%, 02/15/2029 | 2,358,000 | 2,382,639 | ||||||
3.125%, 11/15/2028 | 1,764,000 | 1,857,299 | ||||||
3.125%, 05/15/2048 | 1,091,000 | 1,131,678 | ||||||
U.S. Treasury Note | ||||||||
1.625%, 08/31/2019 | 4,375,000 | 4,362,609 | ||||||
1.625%, 12/31/2019 | 450,000 | 447,539 | ||||||
2.625%, 07/31/2020 | 1,045,000 | 1,048,674 | ||||||
2.875%, 10/31/2020 | 2,026,000 | 2,042,620 | ||||||
2.875%, 10/15/2021 | 1,855,000 | 1,882,608 | ||||||
2.875%, 10/31/2023 | 1,552,000 | 1,591,770 | ||||||
2.875%, 07/31/2025 | 955,000 | 983,333 | ||||||
TotalSovereigns | 17,730,769 | |||||||
TOTAL GOVERNMENT BONDS | ||||||||
(Cost $17,521,082) | 17,730,769 |
7-Day Yield | Shares | Value (Note 2) | ||||||||||
SHORT TERM INVESTMENTS (1.89%) | ||||||||||||
Money Market Fund (1.89%) | ||||||||||||
Morgan Stanley Institutional Liquidity Funds - Government Portfolio | 2.326 | % | 1,107,217 | 1,107,217 | ||||||||
TOTAL SHORT TERM INVESTMENTS | ||||||||||||
(Cost $1,107,217) | 1,107,217 |
51| April 30, 2019
ALPS | Smith Total Return Bond Fund
Statement of Investments | April 30, 2019 (Unaudited) |
Value (Note 2) | ||||
TOTAL INVESTMENTS (100.76%) | ||||
(Cost $57,851,757) | $ | 58,902,479 | ||
Liabilities In Excess Of Other Assets (-0.76%) | (445,524 | ) | ||
NET ASSETS (100.00%) | $ | 58,456,955 |
Investment Abbreviations:
LIBOR - London Interbank Offered Rate
Libor Rates:
3M US L - 3 Month LIBOR as of April 30, 2019 was 2.58%
(a) | Floating or variable rate security. The reference rate is described above. The rate in effect as of April 30, 2019 is based on the reference rate plus the displayed spread as of the security's last reset date. |
(b) | Security exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of April 30, 2019, the aggregate market value of those securities was $6,741,017, representing 11.53% of net assets. |
See Notes to Financial Statements.
52| April 30, 2019
ALPS | Smith Funds
Statements of Assets and Liabilities | April 30, 2019 (Unaudited) |
ALPS | Smith Short Duration Bond Fund | ALPS | Smith Total Return Bond Fund | |||||||
ASSETS | ||||||||
Investments, at value | $ | 35,484,716 | $ | 58,902,479 | ||||
Receivable for investments sold | 1,004,561 | 7,567,696 | ||||||
Receivable for shares sold | 1,433,745 | 1,128,141 | ||||||
Interest receivable | 267,434 | 436,427 | ||||||
Prepaid expenses and other assets | 11,947 | 12,133 | ||||||
Total Assets | 38,202,403 | 68,046,876 | ||||||
LIABILITIES | ||||||||
Payable for investments purchased | 1,208,604 | 9,507,262 | ||||||
Payable for shares redeemed | 1,500 | 5,279 | ||||||
Investment advisory fees payable | 3,619 | 14,160 | ||||||
Administration and transfer agency fees payable | 11,902 | 17,944 | ||||||
Distribution and services fees payable | 497 | 1,015 | ||||||
Professional fees payable | 36,806 | 37,086 | ||||||
Custody fees payable | 244 | 443 | ||||||
Accrued expenses and other liabilities | 6,489 | 6,732 | ||||||
Total Liabilities | 1,269,661 | 9,589,921 | ||||||
NET ASSETS | $ | 36,932,742 | $ | 58,456,955 | ||||
NET ASSETS CONSIST OF | ||||||||
Paid-in capital | $ | 36,606,856 | $ | 57,035,616 | ||||
Total distributable earnings | 325,886 | 1,421,339 | ||||||
NET ASSETS | $ | 36,932,742 | $ | 58,456,955 | ||||
INVESTMENTS, AT COST | $ | 35,257,470 | $ | 57,851,757 | ||||
PRICING OF SHARES | ||||||||
Investor Class: | ||||||||
Net Asset Value, offering and redemption price per share | $ | 10.13 | $ | 10.52 | ||||
Net Assets | $ | 432,185 | $ | 2,115,974 | ||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 42,673 | 201,169 | ||||||
Class A: | ||||||||
Net Asset Value, offering and redemption price per share | $ | 10.12 | $ | 10.52 | ||||
Net Assets | $ | 169,105 | $ | 1,641,738 | ||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 16,703 | 156,115 | ||||||
Maximum offering price per share ((NAV/0.9450), based on maximum sales charge of 5.50% of the offering price) | $ | 10.71 | $ | 11.13 | ||||
Class C: | ||||||||
Net Asset Value, offering and redemption price per share(a) | $ | 10.12 | $ | 10.51 | ||||
Net Assets | $ | 378,413 | $ | 127,768 | ||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 37,382 | 12,157 | ||||||
Class I: | ||||||||
Net Asset Value, offering and redemption price per share | $ | 10.13 | $ | 10.51 | ||||
Net Assets | $ | 35,953,039 | $ | 54,571,475 | ||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 3,547,888 | 5,191,486 |
(a) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. For a description of a possible sales charge, please see the Fund's Prospectus. |
See Notes to Financial Statements.
53| April 30, 2019
ALPS | Smith Funds
Statements of Operations | For the Six Months Ended April 30, 2019 (Unaudited) |
ALPS | Smith Short Duration Bond Fund(a) | ALPS | Smith Total Return Bond Fund(a) | |||||||
INVESTMENT INCOME | ||||||||
Interest | $ | 388,398 | $ | 563,140 | ||||
Total Investment Income | 388,398 | 563,140 | ||||||
EXPENSES | ||||||||
Investment advisory fees | 44,456 | 86,512 | ||||||
Administrative fees | 17,907 | 27,686 | ||||||
Transfer agency fees | 139 | 575 | ||||||
Distribution and service fees | ||||||||
Investor Class | 653 | 1,792 | ||||||
Class A | 155 | 407 | ||||||
Class C | 1,855 | 616 | ||||||
Professional fees | 16,325 | 16,408 | ||||||
Reports to shareholders and printing fees | 2,242 | 2,262 | ||||||
State registration fees | 5,794 | 5,675 | ||||||
Insurance fees | 45 | 42 | ||||||
Custody fees | 3,142 | 4,335 | ||||||
Trustees' fees and expenses | 282 | 295 | ||||||
Miscellaneous expenses | 6,617 | 6,615 | ||||||
Total Expenses | 99,612 | 153,220 | ||||||
Less fees waived/reimbursed by investment advisor (Note 8) | ||||||||
Investor Class | (767 | ) | (1,575 | ) | ||||
Class A | (225 | ) | (429 | ) | ||||
Class C | (600 | ) | (217 | ) | ||||
Class I | (35,394 | ) | (40,940 | ) | ||||
Net Expenses | 62,626 | 110,059 | ||||||
Net Investment Income | 325,772 | 453,081 | ||||||
Net realized gain on investments | 102,488 | 414,426 | ||||||
Net Realized Gain | 102,488 | 414,426 | ||||||
Net change in unrealized appreciation on investments | 262,504 | 1,080,589 | ||||||
Net Change in Unrealized Appreciation | 262,504 | 1,080,589 | ||||||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS | 364,992 | 1,495,015 | ||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 690,764 | $ | 1,948,096 |
(a) | The Fund commenced operations on July 2, 2018. |
See Notes to Financial Statements.
54| April 30, 2019
ALPS | Smith Short Duration Bond Fund
Statement of Changes in Net Assets
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 325,772 | $ | 67,054 | ||||
Net realized gain | 102,488 | 13,253 | ||||||
Net change in unrealized appreciation/(depreciation) | 262,504 | (35,258 | ) | |||||
Net Increase in Net Assets Resulting from Operations | 690,764 | 45,049 | ||||||
DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class | (5,621 | ) | (1,963 | ) | ||||
Class A | (1,813 | ) | (522 | ) | ||||
Class C | (3,162 | ) | (756 | ) | ||||
Class I | (330,714 | ) | (65,377 | ) | ||||
Net Decrease in Net Assets from Distributions | (341,310 | ) | (68,617 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class | 178,200 | 489,983 | ||||||
Class A | 54,758 | 110,000 | ||||||
Class C | – | 370,324 | ||||||
Class I | 25,529,316 | 13,575,852 | ||||||
Dividends reinvested | ||||||||
Investor Class | 5,448 | 1,963 | ||||||
Class A | 1,813 | 522 | ||||||
Class C | 2,737 | 612 | ||||||
Class I | 195,018 | 57,800 | ||||||
Shares redeemed | ||||||||
Investor Class | (249,508 | ) | (106 | ) | ||||
Class I | (3,707,100 | ) | (10,776 | ) | ||||
Net Increase in Net Assets Derived from Beneficial Interest Transactions | 22,010,682 | 14,596,174 | ||||||
Net increase in net assets | 22,360,136 | 14,572,606 | ||||||
NET ASSETS | ||||||||
Beginning of period | 14,572,606 | – | ||||||
End of period | $ | 36,932,742 | $ | 14,572,606 |
See Notes to Financial Statements.
55| April 30, 2019
ALPS | Smith Total Return Bond Fund
Statement of Changes in Net Assets
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 453,081 | $ | 67,159 | ||||
Net realized gain | 414,426 | 5,213 | ||||||
Net change in unrealized appreciation/(depreciation) | 1,080,589 | (29,867 | ) | |||||
Net Increase in Net Assets Resulting from Operations | 1,948,096 | 42,505 | ||||||
DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class | (17,015 | ) | (1,152 | ) | ||||
Class A | (5,354 | ) | (709 | ) | ||||
Class C | (1,233 | ) | (471 | ) | ||||
Class I | (476,237 | ) | (67,091 | ) | ||||
Net Decrease in Net Assets from Distributions | (499,839 | ) | (69,423 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class | 1,897,722 | 344,001 | ||||||
Class A | 2,544,887 | 135,000 | ||||||
Class C | – | 120,000 | ||||||
Class I | 46,069,912 | 10,469,043 | ||||||
Dividends reinvested | ||||||||
Investor Class | 16,771 | 1,152 | ||||||
Class A | 4,808 | 709 | ||||||
Class C | 1,233 | 471 | ||||||
Class I | 321,730 | 65,897 | ||||||
Shares redeemed | ||||||||
Investor Class | (197,307 | ) | – | |||||
Class A | (1,051,775 | ) | – | |||||
Class I | (3,696,278 | ) | (12,360 | ) | ||||
Net Increase in Net Assets Derived from Beneficial Interest Transactions | 45,911,703 | 11,123,913 | ||||||
Net increase in net assets | 47,359,960 | 11,096,995 | ||||||
NET ASSETS | ||||||||
Beginning of period | 11,096,995 | – | ||||||
End of period | $ | 58,456,955 | $ | 11,096,995 |
See Notes to Financial Statements.
56| April 30, 2019
ALPS | Smith Short Duration Bond Fund – Investor Class
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period | $ | 9.98 | $ | 10.00 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.12 | 0.07 | ||||||
Net realized and unrealized gain/(loss) | 0.15 | (0.04 | ) | |||||
Total from investment operations | 0.27 | 0.03 | ||||||
DISTRIBUTIONS: | ||||||||
From net investment income | (0.11 | ) | (0.05 | ) | ||||
From net realized gains | (0.01 | ) | – | |||||
Total distributions | (0.12 | ) | (0.05 | ) | ||||
Net increase/(decrease) in net asset value | 0.15 | (0.02 | ) | |||||
Net asset value, end of period | $ | 10.13 | $ | 9.98 | ||||
TOTAL RETURN(b) | 2.73 | % | 0.25 | % | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 432 | $ | 491 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.09 | %(c) | 2.79 | %(c) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.77 | %(c) | 0.89 | %(c) | ||||
Ratio of net investment income to average net assets | 2.39 | %(c) | 1.93 | %(c) | ||||
Portfolio turnover rate(d) | 274 | % | 266 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
57| April 30, 2019
ALPS | Smith Short Duration Bond Fund – Class A
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period | $ | 9.98 | $ | 10.00 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.12 | 0.06 | ||||||
Net realized and unrealized gain/(loss) | 0.15 | (0.03 | ) | |||||
Total from investment operations | 0.27 | 0.03 | ||||||
DISTRIBUTIONS: | ||||||||
From net investment income | (0.12 | ) | (0.05 | ) | ||||
From net realized gains | (0.01 | ) | – | |||||
Total distributions | (0.13 | ) | (0.05 | ) | ||||
Net increase/(decrease) in net asset value | 0.14 | (0.02 | ) | |||||
Net asset value, end of period | $ | 10.12 | $ | 9.98 | ||||
TOTAL RETURN(b) | 2.65 | % | 0.27 | % | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 169 | $ | 110 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.01 | %(c) | 4.28 | %(c) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.70 | %(c) | 0.89 | %(c) | ||||
Ratio of net investment income to average net assets | 2.47 | %(c) | 1.86 | %(c) | ||||
Portfolio turnover rate(d) | 274 | % | 266 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
58| April 30, 2019
ALPS | Smith Short Duration Bond Fund – Class C
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period | $ | 9.98 | $ | 10.00 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.08 | 0.05 | ||||||
Net realized and unrealized gain/(loss) | 0.15 | (0.04 | ) | |||||
Total from investment operations | 0.23 | 0.01 | ||||||
DISTRIBUTIONS: | ||||||||
From net investment income | (0.08 | ) | (0.03 | ) | ||||
From net realized gains | (0.01 | ) | – | |||||
Total distributions | (0.09 | ) | (0.03 | ) | ||||
Net increase/(decrease) in net asset value | 0.14 | (0.02 | ) | |||||
Net asset value, end of period | $ | 10.12 | $ | 9.98 | ||||
TOTAL RETURN(b) | 2.26 | % | 0.09 | % | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 378 | $ | 370 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.81 | %(c) | 3.54 | %(c) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.49 | %(c) | 1.48 | %(c) | ||||
Ratio of net investment income to average net assets | 1.67 | %(c) | 1.35 | %(c) | ||||
Portfolio turnover rate(d) | 274 | % | 266 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
59| April 30, 2019
ALPS | Smith Short Duration Bond Fund – Class I
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period | $ | 9.99 | $ | 10.00 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.13 | 0.08 | ||||||
Net realized and unrealized gain/(loss) | 0.14 | (0.03 | ) | |||||
Total from investment operations | 0.27 | 0.05 | ||||||
DISTRIBUTIONS: | ||||||||
From net investment income | (0.13 | ) | (0.06 | ) | ||||
From net realized gains | (0.01 | ) | – | |||||
Total distributions | (0.14 | ) | (0.06 | ) | ||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.01 | 0.00 | (b) | |||||
Net increase/(decrease) in net asset value | 0.14 | (0.01 | ) | |||||
Net asset value, end of period | $ | 10.13 | $ | 9.99 | ||||
TOTAL RETURN(c) | 2.76 | % | 0.50 | % | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 35,953 | $ | 13,601 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.79 | %(d) | 1.70 | %(d) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.49 | %(d) | 0.49 | %(d) | ||||
Ratio of net investment income to average net assets | 2.69 | %(d) | 2.36 | %(d) | ||||
Portfolio turnover rate(e) | 274 | % | 266 | % |
(a) | Calculated using the average shares method. |
(b) | Less than $0.005 or ($0.005) per share. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(d) | Annualized. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
60| April 30, 2019
ALPS | Smith Total Return Bond Fund – Investor Class
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period | $ | 10.05 | $ | 10.00 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.13 | 0.07 | ||||||
Net realized and unrealized gain | 0.48 | 0.03 | ||||||
Total from investment operations | 0.61 | 0.10 | ||||||
DISTRIBUTIONS: | ||||||||
From net investment income | (0.12 | ) | (0.05 | ) | ||||
From net realized gains | (0.02 | ) | – | |||||
Total distributions | (0.14 | ) | (0.05 | ) | ||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (b) | – | |||||
Net increase in net asset value | 0.47 | 0.05 | ||||||
Net asset value, end of period | $ | 10.52 | $ | 10.05 | ||||
TOTAL RETURN(c) | 6.07 | % | 1.00 | % | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 2,116 | $ | 345 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.21 | %(d) | 2.97 | %(d) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.96 | %(d) | 1.07 | %(d) | ||||
Ratio of net investment income to average net assets | 2.60 | %(d) | 2.20 | %(d) | ||||
Portfolio turnover rate(e) | 436 | % | 345 | % |
(a) | Calculated using the average shares method. |
(b) | Less than $0.005 or ($0.005) per share. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(d) | Annualized. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
61| April 30, 2019
ALPS | Smith Total Return Bond Fund – Class A
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period | $ | 10.05 | $ | 10.00 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.14 | 0.07 | ||||||
Net realized and unrealized gain | 0.47 | 0.03 | ||||||
Total from investment operations | 0.61 | 0.10 | ||||||
DISTRIBUTIONS: | ||||||||
From net investment income | (0.12 | ) | (0.05 | ) | ||||
From net realized gains | (0.02 | ) | – | |||||
Total distributions | (0.14 | ) | (0.05 | ) | ||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (b) | – | |||||
Net increase in net asset value | 0.47 | 0.05 | ||||||
Net asset value, end of period | $ | 10.52 | $ | 10.05 | ||||
TOTAL RETURN(c) | 6.10 | % | 1.04 | % | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 1,642 | $ | 136 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.19 | %(d) | 3.96 | %(d) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.92 | %(d) | 1.07 | %(d) | ||||
Ratio of net investment income to average net assets | 2.71 | %(d) | 2.10 | %(d) | ||||
Portfolio turnover rate(e) | 436 | % | 345 | % |
(a) | Calculated using the average shares method. |
(b) | Less than $0.005 or ($0.005) per share. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(d) | Annualized. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
62| April 30, 2019
ALPS | Smith Total Return Bond Fund – Class C
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period | $ | 10.04 | $ | 10.00 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.09 | 0.05 | ||||||
Net realized and unrealized gain | 0.49 | 0.03 | ||||||
Total from investment operations | 0.58 | 0.08 | ||||||
DISTRIBUTIONS: | ||||||||
From net investment income | (0.09 | ) | (0.04 | ) | ||||
From net realized gains | (0.02 | ) | – | |||||
Total distributions | (0.11 | ) | (0.04 | ) | ||||
Net increase in net asset value | 0.47 | 0.04 | ||||||
Net asset value, end of period | $ | 10.51 | $ | 10.04 | ||||
TOTAL RETURN(b) | 5.72 | % | 0.79 | % | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 128 | $ | 121 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 2.02 | %(c) | 4.69 | %(c) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.67 | %(c) | 1.67 | %(c) | ||||
Ratio of net investment income to average net assets | 1.85 | %(c) | 1.49 | %(c) | ||||
Portfolio turnover rate(d) | 436 | % | 345 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
63| April 30, 2019
ALPS | Smith Total Return Bond Fund – Class I
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period | $ | 10.04 | $ | 10.00 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.15 | 0.09 | ||||||
Net realized and unrealized gain | 0.48 | 0.02 | ||||||
Total from investment operations | 0.63 | 0.11 | ||||||
DISTRIBUTIONS: | ||||||||
From net investment income | (0.14 | ) | (0.07 | ) | ||||
From net realized gains | (0.02 | ) | – | |||||
Total distributions | (0.16 | ) | (0.07 | ) | ||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (b) | – | |||||
Net increase in net asset value | 0.47 | 0.04 | ||||||
Net asset value, end of period | $ | 10.51 | $ | 10.04 | ||||
TOTAL RETURN(c) | 6.23 | % | 1.09 | % | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 54,571 | $ | 10,495 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.94 | %(d) | 2.18 | %(d) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.67 | %(d) | 0.67 | %(d) | ||||
Ratio of net investment income to average net assets | 2.86 | %(d) | 2.64 | %(d) | ||||
Portfolio turnover rate(e) | 436 | % | 345 | % |
(a) | Calculated using the average shares method. |
(b) | Less than $0.005 or ($0.005) per share. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(d) | Annualized. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
64| April 30, 2019
ALPS | Red Rocks Listed Private Equity Fund
Management Commentary | April 30, 2019 (Unaudited) |
ALPS | Red Rocks Listed Private Equity Fund Portfolio Review – 4/30/2019
Global Equity Markets
Following a turbulent six-month period, equity markets have witnessed a sharp recovery and are approaching prior year’s highs. Domestically, the Federal Reserve ceased rate hikes and has signaled a willingness to delay future increases, clearly to the benefit of the stock market. On a more negative note, the inversion of the yield curve may have signaled what could be the beginning of the end of this long bull market, as historically these inversions have predated recessions by 1-2 years.
Global markets have seen a similar mixed bag. In Europe, slow growth and Brexit uncertainty drive headlines, while the stock market has shown a nice recovery from Q4 woes. Likewise, Chinese trade tensions continue to effect uncertainty and could continue to supply volatility until a deal is reached.
Global Private Markets
We continue to see solid growth in private markets, as underlying fundamentals are not tied to the ebbs and flows of the public market. Calendar year 2018 saw another strong year in private equity fundraising, just slightly reduced from the 2017 peak.
Private company valuations continue to be favorable relative to public valuations; this comparison has only widened with the market recovery.
As global growth slows and uncertainty grows, we see the overall private equity market in a very strong position should volatility continue. Debt levels are sharply lower than pre-financial crisis levels, and valuations are much lower than public market equivalents.
Portfolio Review
The ALPS | Red Rocks Listed Private Equity Fund Investor shares (LPEFX) outperformed its benchmark for the six-month period as global markets recovered following a volatile fourth quarter.
For the six months ending 4/30/2019, the fund returned 10.04%, compared with 9.16% and 9.51% for the MSCI World Index (the fund’s primary benchmark) and the Global Listed Private Equity Index, respectively.
Over longer investment periods as of 4/30/2019, the fund continues to outperform its primary benchmark with 10-year annualized returns of 14.55% compared to 12.20% for the MSCI World Index.
We added 4 and exited 11 names, ending the period with 38 holdings. We continue to pursue a research-driven, valuation- oriented investment process that we have honed over the last decade, building a portfolio through deliberate research with the objective of providing attractive risk-adjusted returns.
We have recently positioned the portfolio to take advantage of a tailwind in the alternative asset management space as these companies switch their legal structures from partnerships into traditional corporate structures (C-corps), a change made more inviting by the passage of the recent tax bill. This conversion opens
up these companies to an influx of long-only investors as well as potential inclusion into various equity indices. Alongside this move, we have also increased our allocation to our fund-of-fund managers to help lower our volatility for which we believe will provide better risk-adjusted returns given our current outlook.
Net detractors to performance included:
· | Onex Corporation |
· | Schouw & CO |
· | Riverstone Energy LTD |
Net contributors to performance included:
· | 3I Group PLC |
· | The Blackstone Group LP |
· | Intermediate Capital Group |
Outlook
We consider the current environment to be quite favorable for the private equity market. Volatility provides our managers with opportunity to deploy capital at lower costs, while simultaneously they are able to weather out the storm before exiting a position. With interest rates stabilizing, they will continue to conservatively deploy leverage at low rates and enhance returns on safer investments.
A common theme we have seen lately in the private markets is a shift away from high priced growth assets and into margin enhancing, less cyclical strategies. We agree with this approach against the current backdrop of higher valuations and slower growth. We expect to see more of these larger deals in the future, with a focus on efficiency and non-cyclicality. We are also witnessing a transition in the alternative asset management companies as mentioned previously, which we believe will offer a short-term tailwind to the space as more long-only investors realize their value.
Despite slower global growth and heightened volatility, we think recession risk remains low. Employment conditions remain healthy and balance sheets remain strong. In this environment, we expect well-managed, conservative businesses will continue to perform well. With the secular growth of private capital, we believe that private equity will continue to offer higher risk-adjusted returns than public markets. Currently, the lower valuations offer safer investments, and as more money pours into the private arena, we expect valuations to converge over time providing a healthy return from the current level. Furthermore, the investment model of buying companies, improving them, and selling them has inherent advantages to investing in public markets such as alignment of interests, a patient investment outlook, and a long-term focus on value creation.
There remain a number of potential risks that may affect the portfolio including the uncertainty surrounding a “no-deal” BREXIT, the current political climate in the U.S. and Europe, potential and ongoing trade conflicts, and a strong dollar. However, these risks are not limited to our style of investing and we are actively managing these possibilities to mitigate potential risks.
65| April 30, 2019
ALPS | Red Rocks Listed Private Equity Fund
Management Commentary | April 30, 2019 (Unaudited) |
In closing, we continue to believe that the fund can provide attractive risk-adjusted returns for investors over longer investment horizons.
We appreciate your continued interest in the fund and listed private equity.
Andrew Drummond | Kirk McCown, CFA | Wyck Brown, CFA |
Portfolio Manager | Portfolio Manager | Portfolio Manager |
The views of the authors and information discussed in this commentary are as of the date of publication, are subject to change, and may not reflect the writer's current views. The views expressed are those of the authors only, and represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the fund(s) or any securities or any sectors mentioned in this letter. The subject matter contained in this letter has been derived from several sources believed to be reliable and accurate at the time of compilation. Neither ALPS, Advisors, Inc., Red Rocks Capital, LLC, nor the Fund accepts any liability for losses either direct or consequential caused by the use of this information.
Diversification cannot guarantee gain or prevent losses.
66| April 30, 2019
ALPS | Red Rocks Listed Private Equity Fund
Performance Update | April 30, 2019 (Unaudited) |
Performance of $10,000 Initial Investment(as of April 30, 2019)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception.Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns(as of April 30, 2019)
6 Month | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception^ | Total Expense Ratio | What You Pay* | |
Investor#(NAV) | 10.04% | 3.34% | 12.20% | 6.68% | 14.55% | 3.01% | 1.80% | 1.80% |
Class A (NAV) | 10.03% | 3.33% | 12.19% | 6.68% | 14.55% | 3.01% | 1.82% | 1.82% |
Class A (MOP) | 3.91% | -2.34% | 10.07% | 5.47% | 13.90% | 2.50% | ||
Class C (NAV) | 9.59% | 2.55% | 11.37% | 5.92% | 13.68% | 2.23% | 2.46% | 2.46% |
Class C (CDSC) | 8.59% | 1.56% | 11.37% | 5.92% | 13.68% | 2.23% | ||
Class I | 10.07% | 3.63% | 12.49% | 6.99% | 14.86% | 3.31% | 1.49% | 1.49% |
Class R | 9.89% | 3.25% | 12.02% | 6.53% | 14.34% | 2.79% | 1.91% | 1.91% |
MSCI World Index1 | 9.16% | 7.08% | 12.02% | 7.91% | 12.20% | 5.60% | ||
Red Rocks Global Listed Private Equity Index2 | 9.51% | 2.81% | 12.78% | 7.37% | 14.97% | 3.73% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million. The Fund imposes a 2.00% redemption fee on shares held for less than 90 days.
Performance less than 1 year is cumulative.
67| April 30, 2019
ALPS | Red Rocks Listed Private Equity Fund
Performance Update | April 30, 2019 (Unaudited) |
Performance shown for Class A shares prior to June 12, 2018 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class A shares.
Performance shown for Class C shares prior to June 30, 2010 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class C shares.
1 | MSCI World Index: Morgan Stanley Capital International’s market capitalization weighted index is composed of companies representative of the market structure of 22 developed market countries in North America, Europe and the Asia/Pacific Region. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
2 | The Red Rocks Global Listed Private Equity Index includes securities, ADRs and GDRs of 40 to 75 private equity companies, including business development companies, master limited partnerships and other vehicles whose principal business is to invest in, lend capital to or provide services to privately held companies. The Red Rocks Global Listed Private Equity Index is managed by the Fund’s Sub-Advisor. An investor may not invest directly in an index. |
^ | Fund Inception date of December 31, 2007 for Investor Class, Class I, and Class R; Fund Inception date June 30, 2010 for Class C; Fund Inception date June 12, 2018 for Class A. |
* | What You Pay reflects the Advisor's and Sub-Advisor’s decision to contractually limit expenses through February 28, 2020, and Acquired Fund Fees and Expenses of 0.34%. Please see the current prospectus for additional information. |
# | Prior to December 1, 2017, Investor Class was known as Class A. |
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors and is subject to investment risks, including possible loss of the principal amount invested.
Listed Private Equity Companies are subject to various risks depending on their underlying investments, which could include, but are not limited to, additional liquidity risk, industry risk, non-U.S. security risk, currency risk, credit risk, managed portfolio risk and derivatives risk (derivatives risk is the risk that the value of the Listed Private Equity Companies’ derivative investments will fall because of pricing difficulties or lack of correlation with the underlying investment).
There are inherent risks in investing in private equity companies, which encompass financial institutions or vehicles whose principal business is to invest in and lend capital to privately held companies. Generally, little public information exists for private and thinly traded companies, and there is a risk that investors may not be able to make a fully informed investment decision.
Listed Private Equity Companies may have relatively concentrated investment portfolios, consisting of a relatively small number of holdings. A consequence of this limited number of investments is that the aggregate returns realized may be adversely impacted by the poor performance of a small number of investments, or even a single investment, particularly if a company experiences the need to write down the value of an investment.
Certain of the Fund’s investments may be exposed to liquidity risk due to low trading volume, lack of a market maker or legal restrictions limiting the ability of the Fund to sell particular securities at an advantageous price and/or time. As a result, these securities may be more difficult to value. Foreign investing involves special risks, such as currency fluctuations and political uncertainty. The Fund invests in derivatives and is subject to the risk that the value of those derivative investments will fall because of pricing difficulties or lack of correlation with the underlying investment.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
68| April 30, 2019
ALPS | Red Rocks Listed Private Equity Fund
Performance Update | April 30, 2019 (Unaudited) |
Top Ten Holdings(as a % of Net Assets)†
IAC/InterActiveCorp | 5.04% |
HarbourVest Global Private Equity, Ltd. | 4.80% |
Blackstone Group LP | 4.54% |
KKR & Co. LP | 4.28% |
3i Group PLC | 4.14% |
AURELIUS Equity Opportunities SE & Co. KGaA | 4.01% |
Berkshire Hathaway, Inc. | 4.00% |
Pantheon International PLC Fund | 3.95% |
Ares Capital Corp. | 3.67% |
Intermediate Capital Group PLC | 3.55% |
Top Ten Holdings | 41.98% |
† | Holdings are subject to change and my not reflect the current or future position of the portfolio. Table presents indicative values only. |
Industry Sector Allocation(as a % of Net Assets)
69| April 30, 2019
ALPS | Red Rocks Listed Private Equity Fund
Statement of Investments | April 30, 2019 (Unaudited) |
Shares | Value (Note 2) | |||||||
CLOSED-END FUNDS (17.42%) | ||||||||
HarbourVest Global Private Equity,Ltd.(a) | 500,500 | $ | 9,855,054 | |||||
HBM Healthcare Investments AG, Class A | 30,366 | 4,976,742 | ||||||
HgCapital Trust PLC | 207,072 | 5,859,480 | ||||||
ICG Enterprise Trust PLC | 170,767 | 1,959,587 | ||||||
NB Private Equity Partners, Ltd. | 206,721 | 2,978,687 | ||||||
Pantheon International PLC Fund(a) | 287,650 | 8,112,774 | ||||||
3i Infrastructure PLC | 531,000 | 1,996,587 | ||||||
TOTAL CLOSED-END FUNDS | ||||||||
(Cost $28,591,910) | 35,738,911 | |||||||
COMMON STOCKS (77.58%) | ||||||||
Communications (10.87%) | ||||||||
Internet (5.04%) | ||||||||
IAC/InterActiveCorp(a) | 46,000 | 10,342,640 | ||||||
Media (5.83%) | ||||||||
Liberty Media Corp.-Liberty | ||||||||
Formula One, Class A(a) | 114,300 | 4,315,968 | ||||||
Liberty Media Corp.-Liberty | ||||||||
SiriusXM, Class A(a) | 104,000 | 4,153,760 | ||||||
Naspers, Ltd., Class N | 13,600 | 3,498,607 | ||||||
11,968,335 | ||||||||
TOTAL COMMUNICATIONS | 22,310,975 | |||||||
Diversified (2.41%) | ||||||||
Holding Companies-Diversified Operations (2.41%) | ||||||||
Schouw & Co. AB | 69,500 | 4,945,527 | ||||||
TOTAL DIVERSIFIED | 4,945,527 | |||||||
Financials (55.68%) | ||||||||
Diversified Financial Services (26.63%) | ||||||||
Berkshire Hathaway, Inc., Class B(a) | 37,900 | 8,213,309 | ||||||
Blackstone Group LP | 236,000 | 9,312,560 | ||||||
Cannae Holdings, Inc.(a) | 165,800 | 4,256,086 | ||||||
Carlyle Group LP | 179,000 | 3,750,050 | ||||||
Compass Diversified Holdings | 154,000 | 2,547,160 | ||||||
EXOR N.V. | 53,300 | 3,554,188 | ||||||
Intermediate Capital Group PLC | 471,300 | 7,283,231 | ||||||
KKR & Co. LP, Class A | 359,100 | 8,779,995 | ||||||
Partners Group Holding AG | 9,200 | 6,939,235 | ||||||
54,635,814 | ||||||||
Investment Companies (19.84%) | ||||||||
3i Group PLC | 607,500 | 8,500,406 | ||||||
Ares Capital Corp. | 418,500 | 7,533,000 | ||||||
AURELIUS Equity Opportunities SE & Co. KGaA | 165,000 | 8,218,576 | ||||||
Eurazeo SE | 48,501 | 3,806,592 | ||||||
FS KKR Capital Corp. | 952,000 | 6,026,160 |
Shares | Value (Note 2) | |||||||
Investment Companies (continued) | ||||||||
Investor AB, B Shares | 97,600 | $ | 4,654,711 | |||||
New Mountain Finance Corp. | 140,000 | 1,968,400 | ||||||
40,707,845 | ||||||||
Private Equity (5.89%) | ||||||||
Brederode SA | 43,722 | 3,039,380 | ||||||
Onex Corp. | 33,400 | 1,937,385 | ||||||
Princess Private Equity Holding, Ltd. | 202,000 | 2,271,297 | ||||||
Standard Life Private Equity | 983,999 | 4,850,253 | ||||||
12,098,315 | ||||||||
Real Estate (3.32%) | ||||||||
Brookfield Asset Management, Inc., Class A | 141,300 | 6,809,247 | ||||||
TOTAL FINANCIALS | 114,251,221 | |||||||
Industrials (7.75%) | ||||||||
Commercial Services (1.20%) | ||||||||
Brookfield Business Partners LP | 63,500 | 2,451,934 | ||||||
Miscellaneous Manufacturers (6.55%) | ||||||||
Aalberts NV | 83,700 | 3,293,166 | ||||||
Colfax Corp.(a) | 209,000 | 6,305,530 | ||||||
Danaher Corp. | 29,000 | 3,840,760 | ||||||
13,439,456 | ||||||||
TOTAL INDUSTRIALS | 15,891,390 | |||||||
Utilities (0.87%) | ||||||||
Electric (0.87%) | ||||||||
Brookfield Infrastructure Partners LP | 43,000 | 1,779,340 | ||||||
TOTAL UTILITIES | 1,779,340 | |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $135,193,232) | 159,178,453 |
70| April 30, 2019
ALPS | Red Rocks Listed Private Equity Fund
Statement of Investments | April 30, 2019 (Unaudited) |
7-Day Yield | Shares | Value (Note 2) | ||||||||||
SHORT-TERM INVESTMENTS (3.93%) | ||||||||||||
Money Market Fund (3.93%) | ||||||||||||
State Street Institutional Treasury Plus Money Market Fund | 2.346 | % | 8,066,856 | $ | 8,066,856 | |||||||
TOTAL MONEY MARKET FUND | 8,066,856 | |||||||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||||||
(Cost $8,066,856) | 8,066,856 | |||||||||||
TOTAL INVESTMENTS (98.93%) | ||||||||||||
(Cost $171,851,998) | $ | 202,984,220 | ||||||||||
Other Assets In Excess Of Liabilities (1.07%) | 2,202,182 | |||||||||||
NET ASSETS (100.00%) | $ | 205,186,402 |
(a) | Non-Income Producing Security. |
For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets.
See Notes to Financial Statements.
71| April 30, 2019
ALPS | Red Rocks Listed Private Equity Fund
Statement of Assets and Liabilities | April 30, 2019 (Unaudited) |
ASSETS | ||||
Investments, at value | $ | 202,984,220 | ||
Foreign currency, at value (Cost $87,928) | 87,928 | |||
Receivable for investments sold | 824,731 | |||
Receivable for shares sold | 1,619,765 | |||
Dividends receivable | 744,329 | |||
Prepaid expenses and other assets | 30,009 | |||
Total Assets | 206,290,982 | |||
LIABILITIES | ||||
Payable for investments purchased | 695,827 | |||
Payable for shares redeemed | 95,763 | |||
Investment advisory fees payable | 139,390 | |||
Administration and transfer agency fees payable | 95,325 | |||
Distribution and services fees payable | 35,007 | |||
Professional fees payable | 20,799 | |||
Custody fees payable | 3,512 | |||
Accrued expenses and other liabilities | 18,957 | |||
Total Liabilities | 1,104,580 | |||
NET ASSETS | $ | 205,186,402 | ||
NET ASSETS CONSIST OF | ||||
Paid-in capital | $ | 174,857,317 | ||
Total distributable earnings | 30,329,085 | |||
NET ASSETS | $ | 205,186,402 | ||
INVESTMENTS, AT COST | $ | 171,851,998 | ||
PRICING OF SHARES | ||||
Investor Class: | ||||
Net Asset Value, offering and redemption price per share | $ | 7.15 | ||
Net Assets | $ | 33,941,929 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 4,744,106 | |||
Class A: | ||||
Net Asset Value, offering and redemption price per share | $ | 7.12 | ||
Net Assets | $ | 16,786 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 2,356 | |||
Maximum offering price per share ((NAV/0.9450), based on maximum sales charge of 5.50% of the offering price) | $ | 7.53 | ||
Class C: | ||||
Net Asset Value, offering and redemption price per share(a) | $ | 6.75 | ||
Net Assets | $ | 17,616,710 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 2,608,774 | |||
Class I: | ||||
Net Asset Value, offering and redemption price per share | $ | 7.26 | ||
Net Assets | $ | 148,175,607 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 20,400,742 | |||
Class R: | ||||
Net Asset Value, offering and redemption price per share | $ | 5.99 | ||
Net Assets | $ | 5,435,370 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 907,514 |
(a) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. For a description of a possible sales charge, please see the Fund's Prospectus. |
See Notes to Financial Statements.
72| April 30, 2019
ALPS | Red Rocks Listed Private Equity Fund
Statement of Operations | For the Six Months Ended April 30, 2019 (Unaudited) |
INVESTMENT INCOME | ||||
Dividends | $ | 1,974,522 | ||
Foreign taxes withheld on dividends | (61,039 | ) | ||
Total Investment Income | 1,913,483 | |||
EXPENSES | ||||
Investment advisory fees | 858,793 | |||
Administrative fees | 88,876 | |||
Transfer agency fees | 127,497 | |||
Distribution and service fees | ||||
Investor Class | 47,084 | |||
Class A | 18 | |||
Class C | 85,644 | |||
Class R | 12,001 | |||
Professional fees | 18,232 | |||
Reports to shareholders and printing fees | 17,803 | |||
State registration fees | 42,503 | |||
Insurance fees | 1,017 | |||
Custody fees | 21,660 | |||
Trustees' fees and expenses | 3,796 | |||
Miscellaneous expenses | 8,879 | |||
Total Expenses | 1,333,803 | |||
Net Investment Income | 579,680 | |||
Net realized gain on investments | 7,602,697 | |||
Net realized gain on foreign currency transactions | 477 | |||
Net Realized Gain | 7,603,174 | |||
Net change in unrealized appreciation on investments | 9,173,896 | |||
Net change in unrealized appreciation on translation of assets and liabilities denominated in foreign currencies | 3,782 | |||
Net Change in Unrealized Appreciation | 9,177,678 | |||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS | 16,780,852 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 17,360,532 |
See Notes to Financial Statements.
73| April 30, 2019
ALPS | Red Rocks Listed Private Equity Fund
Statements of Changes in Net Assets
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 579,680 | $ | 2,431,165 | ||||
Net realized gain | 7,603,174 | 10,111,854 | ||||||
Net change in unrealized appreciation/(depreciation) | 9,177,678 | (24,093,588 | ) | |||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 17,360,532 | (11,550,569 | ) | |||||
TOTAL DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class(a) | (1,333,142 | ) | (6,193,061 | ) | ||||
Class A(b) | (412 | ) | – | |||||
Class C | (664,995 | ) | (2,314,637 | ) | ||||
Class I | (6,912,181 | ) | (16,927,864 | ) | ||||
Class R | (229,316 | ) | (598,880 | ) | ||||
Net Decrease in Net Assets from Distributions | (9,140,046 | ) | (26,034,442 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class(a) | 4,182,748 | 12,212,424 | ||||||
Class A(b) | 5,681 | 10,000 | ||||||
Class C | 417,842 | 4,958,534 | ||||||
Class I | 29,817,902 | 92,888,080 | ||||||
Class R | 775,401 | 1,900,543 | ||||||
Dividends reinvested | ||||||||
Investor Class(a) | 1,062,470 | 5,142,819 | ||||||
Class A(b) | 412 | – | ||||||
Class C | 509,907 | 1,683,239 | ||||||
Class I | 5,348,424 | 13,931,101 | ||||||
Class R | 228,754 | 590,986 | ||||||
Shares redeemed, net of redemption fees | ||||||||
Investor Class(a) | (8,562,659 | ) | (29,194,838 | ) | ||||
Class A(b) | (7 | ) | – | |||||
Class C | (2,984,001 | ) | (3,446,709 | ) | ||||
Class I | (66,661,285 | ) | (45,851,923 | ) | ||||
Class R | (525,404 | ) | (1,217,147 | ) | ||||
Net Increase/(Decrease) in Net Assets Derived from Beneficial Interest Transactions | (36,383,815 | ) | 53,607,109 | |||||
Net increase/(decrease) in net assets | (28,163,329 | ) | 16,022,098 | |||||
NET ASSETS | ||||||||
Beginning of period | 233,349,731 | 217,327,633 | ||||||
End of period | $ | 205,186,402 | $ | 233,349,731 |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Class A commenced operations on June 12, 2018. |
See Notes to Financial Statements.
74| April 30, 2019
ALPS | Red Rocks Listed Private Equity Fund – Investor Class |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(b) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 6.79 | $ | 8.05 | $ | 6.29 | $ | 6.76 | $ | 6.61 | $ | 7.00 | $ | 6.05 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(c) | 0.02 | 0.06 | 0.12 | 0.06 | 0.05 | 0.02 | 0.03 | |||||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.62 | (0.37 | ) | 1.74 | (0.04 | ) | 0.34 | (0.41 | ) | 1.37 | ||||||||||||||||||
Total from investment operations | 0.64 | (0.31 | ) | 1.86 | 0.02 | 0.39 | (0.39 | ) | 1.40 | |||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.05 | ) | (0.70 | ) | (0.10 | ) | (0.22 | ) | (0.22 | ) | – | (0.45 | ) | |||||||||||||||
From net realized gains | (0.23 | ) | (0.25 | ) | – | (0.27 | ) | (0.02 | ) | – | – | |||||||||||||||||
Total distributions | (0.28 | ) | (0.95 | ) | (0.10 | ) | (0.49 | ) | (0.24 | ) | – | (0.45 | ) | |||||||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (d) | 0.00 | (d) | 0.00 | (d) | 0.00 | (d) | 0.00 | (d) | 0.00 | (d) | 0.00 | (d) | ||||||||||||||
Net increase/(decrease) in net asset value | 0.36 | (1.26 | ) | 1.76 | (0.47 | ) | 0.15 | (0.39 | ) | 0.95 | ||||||||||||||||||
Net asset value, end of period | $ | 7.15 | $ | 6.79 | $ | 8.05 | $ | 6.29 | $ | 6.76 | $ | 6.61 | $ | 7.00 | ||||||||||||||
TOTAL RETURN(e) | 10.04 | % | (4.23 | )% | 29.97 | % | 0.76 | % | 6.01 | % | (5.57 | )% | 23.54 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 33,942 | $ | 35,775 | $ | 55,538 | $ | 128,920 | $ | 193,561 | $ | 203,996 | $ | 205,727 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements(f) | 1.40 | %(g) | 1.40 | % | 1.38 | % | 1.47 | % | 1.47 | % | 1.59 | %(g) | 1.64 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements(f) | 1.40 | %(g) | 1.40 | % | 1.38 | % | 1.47 | % | 1.47 | % | 1.59 | %(g) | 1.64 | % | ||||||||||||||
Ratio of net investment income to average net assets(f) | 0.51 | %(g) | 0.86 | % | 1.63 | % | 1.07 | % | 0.72 | % | 0.71 | %(g) | 0.46 | % | ||||||||||||||
Portfolio turnover rate(h) | 16 | % | 29 | % | 31 | % | 30 | % | 37 | % | 11 | % | 40 | % |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(c) | Calculated using the average shares method. |
(d) | Less than $0.005 or ($0.005) per share. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(f) | The ratios exclude the impact of expenses of the underlying funds in which the Fund invests as represented in the Statement of Investments. |
(g) | Annualized. |
(h) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
75| April 30, 2019
ALPS | Red Rocks Listed Private Equity Fund – Class A
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period June 12, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period | $ | 6.79 | $ | 7.23 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.02 | 0.01 | ||||||
Net realized and unrealized gain/(loss) | 0.61 | (0.45 | ) | |||||
Total from investment operations | 0.63 | (0.44 | ) | |||||
DISTRIBUTIONS: | ||||||||
From net investment income | (0.07 | ) | – | |||||
From net realized gains | (0.23 | ) | – | |||||
Total distributions | (0.30 | ) | – | |||||
Net increase/(decrease) in net asset value | 0.33 | (0.44 | ) | |||||
Net asset value, end of period | $ | 7.12 | $ | 6.79 | ||||
TOTAL RETURN(b) | 10.03 | % | (6.09 | )% | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 17 | $ | 9 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements(c) | 1.37 | %(d) | 1.48 | %(d) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements(c) | 1.37 | %(d) | 1.48 | %(d) | ||||
Ratio of net investment income to average net assets | 0.57 | %(d) | 0.37 | %(d) | ||||
Portfolio turnover rate(e) | 16 | % | 29 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | The ratios exclude the impact of expenses of the underlying funds in which the Fund invests as represented in the Statement of Investments. |
(d) | Annualized. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
76| April 30, 2019
ALPS | Red Rocks Listed Private Equity Fund – Class C
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(a) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 6.41 | $ | 7.66 | $ | 6.04 | $ | 6.53 | $ | 6.43 | $ | 6.83 | $ | 5.92 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income/(loss)(b) | (0.01 | ) | 0.01 | 0.06 | 0.03 | 0.00 | (c) | (0.00 | )(c) | (0.00 | )(c) | |||||||||||||||||
Net realized and unrealized gain/(loss) | 0.59 | (0.34 | ) | 1.65 | (0.03 | ) | 0.32 | (0.40 | ) | 1.33 | ||||||||||||||||||
Total from investment operations | 0.58 | (0.33 | ) | 1.71 | – | 0.32 | (0.40 | ) | 1.33 | |||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.01 | ) | (0.67 | ) | (0.09 | ) | (0.22 | ) | (0.20 | ) | – | (0.42 | ) | |||||||||||||||
From net realized gains | (0.23 | ) | (0.25 | ) | – | (0.27 | ) | (0.02 | ) | – | – | |||||||||||||||||
Total distributions | (0.24 | ) | (0.92 | ) | (0.09 | ) | (0.49 | ) | (0.22 | ) | – | (0.42 | ) | |||||||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (c) | – | 0.00 | (c) | 0.00 | (c) | 0.00 | (c) | 0.00 | (c) | 0.00 | (c) | |||||||||||||||
Net increase/(decrease) in net asset value | 0.34 | (1.25 | ) | 1.62 | (0.49 | ) | 0.10 | (0.40 | ) | 0.91 | ||||||||||||||||||
Net asset value, end of period | $ | 6.75 | $ | 6.41 | $ | 7.66 | $ | 6.04 | $ | 6.53 | $ | 6.43 | $ | 6.83 | ||||||||||||||
TOTAL RETURN(d) | 9.59 | % | (4.88 | )% | 28.79 | % | 0.34 | % | 5.14 | % | (5.86 | )% | 22.97 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 17,617 | $ | 18,847 | $ | 18,981 | $ | 14,784 | $ | 19,300 | $ | 17,193 | $ | 12,200 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements(e) | 2.16 | %(f) | 2.12 | % | 2.13 | % | 2.16 | % | 2.12 | % | 2.15 | %(f) | 2.20 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements(e) | 2.16 | %(f) | 2.12 | % | 2.13 | % | 2.16 | % | 2.12 | % | 2.15 | %(f) | 2.20 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets(e) | (0.27 | )%(f) | 0.15 | % | 0.83 | % | 0.49 | % | 0.06 | % | (0.13 | )%(f) | (0.04 | )% | ||||||||||||||
Portfolio turnover rate(g) | 16 | % | 29 | % | 31 | % | 30 | % | 37 | % | 11 | % | 40 | % |
(a) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(b) | Calculated using the average shares method. |
(c) | Less than $0.005 or ($0.005) per share. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(e) | The ratios exclude the impact of expenses of the underlying funds in which the Fund invests as represented in the Statement of Investments. |
(f) | Annualized. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
77| April 30, 2019
ALPS | Red Rocks Listed Private Equity Fund – Class I
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(a) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 6.92 | $ | 8.18 | $ | 6.39 | $ | 6.83 | $ | 6.67 | $ | 7.05 | $ | 6.08 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(b) | 0.02 | 0.09 | 0.13 | 0.09 | 0.07 | 0.03 | 0.06 | |||||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.63 | (0.37 | ) | 1.76 | (0.03 | ) | 0.34 | (0.41 | ) | 1.37 | ||||||||||||||||||
Total from investment operations | 0.65 | (0.28 | ) | 1.89 | 0.06 | 0.41 | (0.38 | ) | 1.43 | |||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.08 | ) | (0.73 | ) | (0.10 | ) | (0.23 | ) | (0.23 | ) | – | (0.46 | ) | |||||||||||||||
From net realized gains | (0.23 | ) | (0.25 | ) | – | (0.27 | ) | (0.02 | ) | – | – | |||||||||||||||||
Total distributions | (0.31 | ) | (0.98 | ) | (0.10 | ) | (0.50 | ) | (0.25 | ) | – | (0.46 | ) | |||||||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (c) | 0.00 | (c) | 0.00 | (c) | 0.00 | (c) | 0.00 | (c) | 0.00 | (c) | 0.00 | (c) | ||||||||||||||
Net increase/(decrease) in net asset value | 0.34 | (1.26 | ) | 1.79 | (0.44 | ) | 0.16 | (0.38 | ) | 0.97 | ||||||||||||||||||
Net asset value, end of period | $ | 7.26 | $ | 6.92 | $ | 8.18 | $ | 6.39 | $ | 6.83 | $ | 6.67 | $ | 7.05 | ||||||||||||||
TOTAL RETURN(d) | 10.07 | % | (3.87 | )% | 30.09 | % | 1.27 | % | 6.30 | % | (5.39 | )% | 24.02 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 148,176 | $ | 174,034 | $ | 138,572 | $ | 180,892 | $ | 287,741 | $ | 249,375 | $ | 202,076 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements(e) | 1.20 | %(f) | 1.15 | % | 1.16 | % | 1.18 | % | 1.16 | % | 1.25 | %(f) | 1.25 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements(e) | 1.20 | %(f) | 1.15 | % | 1.16 | % | 1.18 | % | 1.16 | % | 1.25 | %(f) | 1.25 | % | ||||||||||||||
Ratio of net investment income to average net assets(e) | 0.69 | %(f) | 1.15 | % | 1.85 | % | 1.48 | % | 1.02 | % | 0.85 | %(f) | 0.91 | % | ||||||||||||||
Portfolio turnover rate(g) | 16 | % | 29 | % | 31 | % | 30 | % | 37 | % | 11 | % | 40 | % |
(a) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(b) | Calculated using the average shares method. |
(c) | Less than $0.005 or ($0.005) per share. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(e) | The ratios exclude the impact of expenses of the underlying funds in which the Fund invests as represented in the Statement of Investments. |
(f) | Annualized. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
78| April 30, 2019
ALPS | Red Rocks Listed Private Equity Fund – Class R |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(a) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 5.75 | $ | 6.97 | $ | 5.48 | $ | 5.96 | $ | 5.87 | $ | 6.21 | $ | 5.41 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(b) | 0.01 | 0.04 | 0.09 | 0.06 | 0.03 | 0.01 | 0.02 | |||||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.51 | (0.30 | ) | 1.50 | (0.05 | ) | 0.31 | (0.36 | ) | 1.22 | ||||||||||||||||||
Total from investment operations | 0.52 | (0.26 | ) | 1.59 | 0.01 | 0.34 | (0.35 | ) | 1.24 | |||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.05 | ) | (0.71 | ) | (0.10 | ) | (0.22 | ) | (0.23 | ) | – | (0.44 | ) | |||||||||||||||
From net realized gains | (0.23 | ) | (0.25 | ) | – | (0.27 | ) | (0.02 | ) | – | – | |||||||||||||||||
Total distributions | (0.28 | ) | (0.96 | ) | (0.10 | ) | (0.49 | ) | (0.25 | ) | – | (0.44 | ) | |||||||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | – | – | – | – | 0.00 | (c) | 0.01 | – | ||||||||||||||||||||
Net increase/(decrease) in net asset value | 0.24 | (1.22 | ) | 1.49 | (0.48 | ) | 0.09 | (0.34 | ) | 0.80 | ||||||||||||||||||
Net asset value, end of period | $ | 5.99 | $ | 5.75 | $ | 6.97 | $ | 5.48 | $ | 5.96 | $ | 5.87 | $ | 6.21 | ||||||||||||||
TOTAL RETURN(d) | 9.89 | % | (4.31 | )% | 29.51 | % | 0.67 | % | 5.87 | % | (5.48 | )% | 23.50 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 5,435 | $ | 4,684 | $ | 4,236 | $ | 2,852 | $ | 3,068 | $ | 872 | $ | 540 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements(e) | 1.60 | %(f) | 1.57 | % | 1.56 | % | 1.63 | % | 1.60 | % | 1.63 | %(f) | 1.72 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements(e) | 1.60 | %(f) | 1.57 | % | 1.56 | % | 1.63 | % | 1.60 | % | 1.63 | %(f) | 1.72 | % | ||||||||||||||
Ratio of net investment income to average net assets(e) | 0.29 | %(f) | 0.70 | % | 1.43 | % | 1.05 | % | 0.52 | % | 0.46 | %(f) | 0.36 | % | ||||||||||||||
Portfolio turnover rate(g) | 16 | % | 29 | % | 31 | % | 30 | % | 37 | % | 11 | % | 40 | % |
(a) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(b) | Calculated using the average shares method. |
(c) | Less than $0.005 or ($0.005) per share. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(e) | The ratios exclude the impact of expenses of the underlying funds in which the Fund invests as represented in the Statement of Investments. |
(f) | Annualized. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
79| April 30, 2019
ALPS | WMC Research Value Fund | |
Management Commentary | April 30, 2019 (Unaudited) |
Market Commentary
US equities rose 9.8% over the six-month period ended 30 April 2019, as measured by the S&P 500 Index. Volatility was elevated at the end of 2018, as markets contended with moderating growth, tighter liquidity and monetary policy, trade uncertainty, swelling fiscal deficits, and political turmoil. Despite rising corporate headwinds and a challenging macro environment, third-quarter earnings were relatively solid.
In the first quarter of 2019, US equities rallied to their largest quarterly gain since 1998, buoyed by a dovish shift in Federal Reserve (Fed) policy and guidance, optimism for a US-China trade deal, relatively strong fourth-quarter earnings, and corporate buybacks. The Fed left its benchmark interest rate unchanged during the quarter, signaling a more patient approach toward future policy-rate adjustments in response to slowing economic growth and muted inflation. The Fed also announced that balance-sheet normalization will begin to slow in May and conclude in September. Fourth-quarter earnings and forward guidance from US companies were encouraging relative to the market’s subdued expectations.
US equities rose 4.0% in April. Market sentiment was bolstered by better-than-expected US corporate earnings, solid economic indicators, expectations for a US-China trade deal, and a favorable monetary policy backdrop.
Fund Review
The fund outperformed its benchmark, the Russell 1000 Value Index, on a gross of fee basis, posting positive relative results in seven of the eleven sectors during the period. Stock selection in the financials, information technology and energy sectors drove relative outperformance, while weaker selection in consumer staples and utilities partially offset these gains.
Top relative contributors during the period included Wells Fargo (not held, financials), Pfizer (not held, health care), CVS Health (not held, health care), Marvell Technology (overweight, information technology), and American Tower (out-of-benchmark position, real estate). Not holding Wells Fargo, an American multinational financial services company, was the largest relative contributor during the period. Wells Fargo stock fell as the bank lowered its forecast for 2019’s net interest income following the Fed’s decision to halt its rate hikes. Pfizer and CVS Health shares were impacted by concerns about proposals in Congress, including replacing private health insurance with a government plan, which weighed on the healthcare sector. Furthermore, CVS reported 2019 guidance below consensus expectations driven, in part, by ongoing pharmacy reimbursement pressures and fewer benefits from generics. Marvell Technology’s shares have trended upward amid investors’ increasing confidence in the company’s secular growth potential. The company is a beneficiary of 5G network infrastructure spending, which should drive revenue growth in the second half of 2019 and accelerate into 2020. American Tower reported strong fourth quarter 2018 results due to increased use of mobile data which drove demand for tower space. The company has experienced favorable
supply/demand dynamics which has allowed them to boost prices and increase margins.
Top relative detractors during the period included Altria (consumer staples), British-American Tobacco (consumer staples), and Cisco Systems (not held, information technology). Altria and British-American Tobacco, both producers and marketers of tobacco, cigarettes and related products were negatively impacted by a worsening US tobacco outlook, following the news that the FDA may be considering a ban on menthol cigarettes. Both stocks were eliminated during the period as a menthol ban could be a headwind for both companies as they derive a sizeable portion of revenue from menthol products. Not holding Cisco Systems, a US based multinational technology conglomerate, weighed on relative returns. The company has had positive earnings reports signaling a positive outlook suggesting product strength amid a challenging geopolitical environment.
Strategy and Outlook
Our US macro team expects the US economy to continue outpacing its developed market peers but to slow as fiscal stimulus fades. US consumers remain in solid shape, but we think the pace of consumption will moderate as consumer confidence has come down from recent highs. We are closely monitoring US/China trade tensions and how different scenarios could impact holdings in our opportunity set. We also worry that with the first Democratic primary debate just months away, the market may soon price in the significantly less business-friendly policies being proposed by some contenders.
Looking ahead, our Global Industry Analysts remain focused on fundamental, bottom-up stock selection with an eye on how the macro-economic outlook will affect the companies in which they invest. We continue to identify themes and opportunities that will shape future investment decisions.
The views of the authors and information discussed in this commentary are as of the date of publication, are subject to change, and may not reflect the writer's current views. The views expressed are those of the authors only, and represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the fund(s) or any securities or any sectors mentioned in this letter. The subject matter contained in this letter has been derived from several sources believed to be reliable and accurate at the time of compilation. Neither ALPS, Advisors, Inc., Wellington Management Company, LLP, nor the Fund accepts any liability for losses either direct or consequential caused by the use of this information.
Diversification cannot guarantee gain or prevent losses.
80| April 30, 2019
ALPS | WMC Research Value Fund | |
Performance Update | April 30, 2019 (Unaudited) |
Performance of $10,000 Initial Investment(as of April 30, 2019)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception.Past performance does not guarantee future results.This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns(as of April 30, 2019)
6 Month | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception^ | Total Expense Ratio | What You Pay* | |
Investor#(NAV) | 7.72% | 5.90% | 8.93% | 6.70% | 12.30% | 9.56% | 1.53% | 1.15% |
Class A (NAV) | 7.72% | 5.90% | 8.93% | 6.70% | 12.30% | 9.56% | 1.57% | 1.15% |
Class A (MOP) | 1.76% | 0.03% | 6.90% | 5.51% | 11.67% | 9.43% | ||
Class C (NAV) | 7.37% | 5.20% | 8.12% | 5.90% | 11.48% | 8.75% | 2.28% | 1.90% |
Class C (CDSC) | 6.41% | 4.26% | 8.12% | 5.90% | 11.48% | 8.75% | ||
Class I | 7.76% | 6.11% | 9.18% | 6.95% | 12.59% | 9.81% | 1.28% | 0.90% |
Russell 1000® Value Index1 | 7.90% | 9.06% | 10.97% | 8.27% | 13.76% | – | ||
S&P 500® Total Return Index2 | 9.76% | 13.49% | 14.87% | 11.63% | 15.32% | – |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $ 1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million.
Performance less than 1 year is cumulative.
81| April 30, 2019
ALPS | WMC Research Value Fund | |
Performance Update | April 30, 2019 (Unaudited) |
Performance shown for Class A shares prior to June 12, 2018 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class A shares.
Performance shown for Class C shares prior to June 30, 2010 reflects the historical performance of the Fund’s Investor Class shares, calculated using the fees and expenses of Class C shares.
Effective February 28, 2015 the Fund changed its name from the ALPS | WMC Disciplined Value Fund to the ALPS | WMC Research Value Fund.
The performance shown for the ALPS | WMC Research Value Fund (the “Fund”) for periods prior to August 29, 2009, reflects the performance of the Activa Mutual Funds Trust – Activa Value Fund (as result of a prior reorganization of Activa Mutual Funds Trust – Activa Value Fund into the Fund).
1 | The Russell 1000®Value Index measures the performance of those Russell 1000®companies with lower price-to-book ratios and lower forecasted growth values. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
2 | The S&P 500® Index is the Standard & Poor’s composite index of 500 stocks, a widely recognized, unmanaged index of common stock prices. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
^ | Fund Inception date August 10, 1971 for Investor Class, November 2, 1998 for Class I, June 30, 2010 for Class C and June 12, 2018 for Class A. |
* | What You Pay reflects the Advisor’s decision to contractually limit expenses through February 28, 2020. Please see the prospectus for additional information. |
# | Prior to December 1, 2017, Investor Class was known as Class A. |
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. This Fund is not suitable for all investors and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Top Ten Holdings(as a % of Net Assets)†
Bank of America Corp. | 4.68 | % | ||
Verizon Communications, Inc. | 3.76 | % | ||
JPMorgan Chase & Co. | 3.64 | % | ||
Exxon Mobil Corp. | 3.33 | % | ||
Procter & Gamble Co. | 2.49 | % | ||
Comcast Corp. | 2.47 | % | ||
McDonald's Corp. | 2.24 | % | ||
Abbott Laboratories | 2.07 | % | ||
Intel Corp. | 1.83 | % | ||
Chevron Corp. | 1.52 | % | ||
Top Ten Holdings | 28.03 | % |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents indicative values only. |
Industry Sector Allocation(as a % of Net Assets)
82| April 30, 2019
ALPS | WMC Research Value Fund | |
Statement of Investments | April 30, 2019 (Unaudited) |
Value | ||||||||
Shares | (Note 2) | |||||||
COMMON STOCKS (99.02%) | ||||||||
Communication Services (7.78%) | ||||||||
Media & Entertainment (4.02%) | ||||||||
Charter Communications, Inc., Class A(a) | 755 | $ | 280,248 | |||||
Cinemark Holdings, Inc. | 4,752 | 199,822 | ||||||
Comcast Corp., Class A | 49,087 | 2,136,757 | ||||||
Electronic Arts, Inc.(a) | 600 | 56,790 | ||||||
Liberty Media Corp.-Liberty Formula One, Class C(a) | 4,908 | 190,479 | ||||||
New York Times Co., Class A | 4,230 | 140,225 | ||||||
Viacom, Inc., Class B | 8,180 | 236,484 | ||||||
Walt Disney Co. | 1,774 | 242,985 | ||||||
3,483,790 | ||||||||
Telecommunication Services (3.76%) | ||||||||
Verizon Communications, Inc. | 56,921 | 3,255,312 | ||||||
TOTAL COMMUNICATION SERVICES | 6,739,102 | |||||||
Consumer Discretionary (5.48%) | ||||||||
Consumer Durables & Apparel (0.87%) | ||||||||
NIKE, Inc., Class B | 4,003 | 351,584 | ||||||
Tapestry, Inc. | 7,074 | 228,278 | ||||||
Under Armour, Inc., Class A(a) | 7,577 | 174,953 | ||||||
754,815 | ||||||||
Consumer Services (3.07%) | ||||||||
Houghton Mifflin Harcourt Co.(a) | 9,262 | 66,038 | ||||||
Hyatt Hotels Corp., Class A | 6,341 | 486,545 | ||||||
McDonald's Corp. | 9,825 | 1,941,125 | ||||||
MGM Resorts International | 6,085 | 162,044 | ||||||
2,655,752 | ||||||||
Retailing (1.54%) | ||||||||
Expedia Group, Inc. | 2,038 | 264,614 | ||||||
Lowe's Cos., Inc. | 2,728 | 308,646 | ||||||
Ross Stores, Inc. | 1,476 | 144,146 | ||||||
TJX Cos., Inc. | 11,272 | 618,607 | ||||||
1,336,013 | ||||||||
TOTAL CONSUMER DISCRETIONARY | 4,746,580 | |||||||
Consumer Staples (6.63%) | ||||||||
Food & Staples Retailing (1.10%) | ||||||||
Wal-Mart Stores, Inc. | 9,259 | 952,195 | ||||||
Food, Beverage & Tobacco (3.04%) | ||||||||
Coca-Cola Co. | 22,756 | 1,116,409 | ||||||
Mondelez International, Inc., Class A | 10,999 | 559,299 | ||||||
Philip Morris International, Inc. | 11,090 | 959,951 | ||||||
2,635,659 |
Value | ||||||||
Shares | (Note 2) | |||||||
Household & Personal Products (2.49%) | ||||||||
Procter & Gamble Co. | 20,287 | $ | 2,160,160 | |||||
TOTAL CONSUMER STAPLES | 5,748,014 | |||||||
Energy (9.35%) | ||||||||
Energy (9.35%) | ||||||||
Baker Hughes a GE Co. | 11,338 | 272,339 | ||||||
Chevron Corp. | 10,979 | 1,318,139 | ||||||
Concho Resources, Inc. | 2,285 | 263,643 | ||||||
Diamondback Energy, Inc. | 1,878 | 199,800 | ||||||
Encana Corp. | 46,015 | 318,884 | ||||||
Exxon Mobil Corp. | 35,920 | 2,883,658 | ||||||
Halliburton Co. | 9,049 | 256,358 | ||||||
Marathon Petroleum Corp. | 11,568 | 704,144 | ||||||
Noble Energy, Inc. | 15,708 | 425,058 | ||||||
ONEOK, Inc. | 4,301 | 292,167 | ||||||
Targa Resources Corp. | 4,499 | 180,635 | ||||||
TransCanada Corp. | 20,741 | 990,590 | ||||||
8,105,415 | ||||||||
TOTAL ENERGY | 8,105,415 | |||||||
Financials (22.85%) | ||||||||
Banks (10.20%) | ||||||||
Bank of America Corp. | 132,502 | 4,051,911 | ||||||
JPMorgan Chase & Co. | 27,196 | 3,156,096 | ||||||
KeyCorp | 17,755 | 311,600 | ||||||
MGIC Investment Corp.(a) | 16,171 | 236,743 | ||||||
Sterling Bancorp | 13,726 | 294,011 | ||||||
SVB Financial Group(a) | 1,226 | 308,609 | ||||||
Zions Bancorp NA | 9,655 | 476,281 | ||||||
8,835,251 | ||||||||
Diversified Financials (5.76%) | ||||||||
American Express Co. | 3,944 | 462,355 | ||||||
AXA Equitable Holdings, Inc. | 11,845 | 268,763 | ||||||
Berkshire Hathaway, Inc., Class B(a) | 4,004 | 867,707 | ||||||
Blucora, Inc.(a) | 6,745 | 236,075 | ||||||
Hamilton Lane, Inc., Class A | 5,578 | 272,541 | ||||||
Northern Trust Corp. | 6,246 | 615,543 | ||||||
OneMain Holdings, Inc. | 7,738 | 262,860 | ||||||
Raymond James Financial, Inc. | 6,654 | 609,307 | ||||||
TD Ameritrade Holding Corp. | 20,631 | 1,084,778 | ||||||
Voya Financial, Inc. | 5,754 | 315,837 | ||||||
4,995,766 | ||||||||
Insurance (6.89%) | ||||||||
Alleghany Corp. | 556 | 365,225 | ||||||
American International Group, Inc. | 18,796 | 894,126 | ||||||
Assurant, Inc. | 6,045 | 574,275 | ||||||
Assured Guaranty, Ltd. | 18,123 | 864,467 | ||||||
Athene Holding, Ltd., Class A(a) | 11,049 | 498,973 |
83| April 30, 2019
ALPS | WMC Research Value Fund | |
Statement of Investments | April 30, 2019 (Unaudited) |
Value | ||||||||
Shares | (Note 2) | |||||||
Insurance (continued) | ||||||||
Hartford Financial Services Group, Inc. | 14,596 | $ | 763,517 | |||||
Marsh & McLennan Cos., Inc. | 7,336 | 691,711 | ||||||
MetLife, Inc. | 8,977 | 414,109 | ||||||
Progressive Corp. | 4,343 | 339,406 | ||||||
Prudential Financial, Inc. | 5,352 | 565,760 | ||||||
5,971,569 | ||||||||
TOTAL FINANCIALS | 19,802,586 | |||||||
Health Care (13.75%) | ||||||||
Health Care Equipment & Services (7.26%) | ||||||||
Abbott Laboratories | 22,547 | 1,793,839 | ||||||
Anthem, Inc. | 4,356 | 1,145,759 | ||||||
Baxter International, Inc. | 7,659 | 584,382 | ||||||
Boston Scientific Corp.(a) | 11,313 | 419,939 | ||||||
Danaher Corp. | 8,021 | 1,062,301 | ||||||
HCA Healthcare, Inc. | 3,104 | 394,922 | ||||||
Medtronic PLC | 4,077 | 362,078 | ||||||
NuVasive, Inc.(a) | 2,827 | 171,316 | ||||||
UnitedHealth Group, Inc. | 1,545 | 360,093 | ||||||
6,294,629 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences (6.49%) | ||||||||
Allergan PLC | 6,983 | 1,026,501 | ||||||
Alnylam Pharmaceuticals, Inc.(a) | 930 | 83,086 | ||||||
Amneal Pharmaceuticals, Inc.(a) | 2,707 | 34,839 | ||||||
AstraZeneca PLC, Sponsored ADR | 26,793 | 1,009,024 | ||||||
Bluebird Bio, Inc.(a) | 1,219 | 172,891 | ||||||
Bristol-Myers Squibb Co. | 17,881 | 830,215 | ||||||
Elanco Animal Health, Inc.(a) | 2,680 | 84,420 | ||||||
Eli Lilly & Co. | 3,348 | 391,850 | ||||||
GlycoMimetics, Inc.(a) | 2,843 | 34,599 | ||||||
Mylan NV(a) | 12,628 | 340,830 | ||||||
Nektar Therapeutics(a) | 2,230 | 71,405 | ||||||
Teva Pharmaceutical Industries, Ltd., Sponsored ADR(a) | 22,759 | 346,392 | ||||||
Thermo Fisher Scientific, Inc. | 4,300 | 1,193,035 | ||||||
5,619,087 | ||||||||
TOTAL HEALTH CARE | 11,913,716 | |||||||
Industrials (8.24%) | ||||||||
Capital Goods (5.62%) | ||||||||
AGCO Corp. | 2,624 | 185,727 | ||||||
AMETEK, Inc. | 3,349 | 295,281 | ||||||
Boeing Co. | 677 | 255,696 | ||||||
Caterpillar, Inc. | 1,263 | 176,087 | ||||||
Deere & Co. | 1,302 | 215,650 | ||||||
Dycom Industries, Inc.(a) | 1,813 | 89,907 | ||||||
Fortive Corp. | 1,329 | 114,746 | ||||||
General Electric Co. | 47,780 | 485,923 | ||||||
Granite Construction, Inc. | 1,732 | 77,749 |
Value | ||||||||
Shares | (Note 2) | |||||||
Capital Goods (continued) | ||||||||
Greenbrier Cos., Inc. | 4,176 | $ | 148,373 | |||||
Harris Corp. | 1,899 | 319,982 | ||||||
Illinois Tool Works, Inc. | 2,250 | 350,168 | ||||||
Ingersoll-Rand PLC | 2,496 | 306,035 | ||||||
Lockheed Martin Corp. | 3,313 | 1,104,322 | ||||||
Raytheon Co. | 3,253 | 577,700 | ||||||
Triton International, Ltd. | 4,995 | 164,585 | ||||||
4,867,931 | ||||||||
Commercial & Professional Services (1.40%) | ||||||||
Equifax, Inc. | 1,694 | 213,359 | ||||||
IHS Markit, Ltd.(a) | 3,936 | 225,375 | ||||||
TransUnion | 1,391 | 96,883 | ||||||
Waste Management, Inc. | 6,290 | 675,169 | ||||||
1,210,786 | ||||||||
Transportation (1.22%) | ||||||||
JetBlue Airways Corp.(a) | 7,367 | 136,658 | ||||||
Kirby Corp.(a) | 1,532 | 125,195 | ||||||
Norfolk Southern Corp. | 3,900 | 795,678 | ||||||
1,057,531 | ||||||||
TOTAL INDUSTRIALS | 7,136,248 | |||||||
Information Technology (9.73%) | ||||||||
Semiconductors & Semiconductor Equipment (4.87%) | ||||||||
First Solar, Inc.(a) | 3,195 | 196,588 | ||||||
Intel Corp. | 31,091 | 1,586,885 | ||||||
KLA-Tencor Corp. | 2,187 | 278,799 | ||||||
Marvell Technology Group, Ltd. | 24,829 | 621,222 | ||||||
Micron Technology, Inc.(a) | 6,485 | 272,759 | ||||||
Teradyne, Inc. | 9,406 | 460,894 | ||||||
Texas Instruments, Inc. | 4,179 | 492,411 | ||||||
Xilinx, Inc. | 2,578 | 309,721 | ||||||
4,219,279 | ||||||||
Software & Services (4.14%) | ||||||||
Autodesk, Inc.(a) | 937 | 166,983 | ||||||
CACI International, Inc., Class A(a) | 1,083 | 211,120 | ||||||
Ceridian HCM Holding, Inc.(a) | 1,652 | 87,804 | ||||||
FleetCor Technologies, Inc.(a) | 1,015 | 264,864 | ||||||
Genpact, Ltd. | 10,329 | 374,943 | ||||||
Global Payments, Inc. | 2,524 | 368,681 | ||||||
Guidewire Software, Inc.(a) | 1,665 | 177,322 | ||||||
Leidos Holdings, Inc. | 3,923 | 288,262 | ||||||
Microsoft Corp. | 6,292 | 821,735 | ||||||
SS&C Technologies Holdings, Inc. | 1,909 | 129,163 | ||||||
Total System Services, Inc. | 1,877 | 191,904 | ||||||
Visa, Inc., Class A | 1,933 | 317,843 | ||||||
WEX, Inc.(a) | 905 | 190,322 | ||||||
3,590,946 |
84| April 30, 2019
ALPS | WMC Research Value Fund | |
Statement of Investments | April 30, 2019 (Unaudited) |
Value | ||||||||
Shares | (Note 2) | |||||||
Technology Hardware & Equipment (0.72%) | ||||||||
Flex, Ltd.(a) | 24,230 | $ | 267,499 | |||||
Western Digital Corp. | 6,892 | 352,319 | ||||||
619,818 | ||||||||
TOTAL INFORMATION TECHNOLOGY | 8,430,043 | |||||||
Materials (3.94%) | ||||||||
Materials (3.94%) | ||||||||
Alcoa Corp.(a) | 3,595 | 95,915 | ||||||
Ardagh Group SA | 4,566 | 63,376 | ||||||
Ball Corp. | 7,909 | 474,065 | ||||||
Cabot Corp. | 9,183 | 416,724 | ||||||
Celanese Corp., Series A | 2,301 | 248,255 | ||||||
FMC Corp. | 4,044 | 319,719 | ||||||
Freeport-McMoRan, Inc. | 12,880 | 158,553 | ||||||
International Paper Co. | 6,454 | 302,112 | ||||||
Linde PLC | 2,607 | 469,938 | ||||||
Livent Corp.(a) | 2,783 | 30,001 | ||||||
PPG Industries, Inc. | 4,974 | 584,445 | ||||||
Southern Copper Corp. | 2,212 | 84,985 | ||||||
Steel Dynamics, Inc. | 3,668 | 116,202 | ||||||
Vulcan Materials Co. | 394 | 49,687 | ||||||
3,413,977 | ||||||||
TOTAL MATERIALS | 3,413,977 | |||||||
Real Estate (4.66%) | ||||||||
Real Estate (4.66%) | ||||||||
Alexandria Real Estate Equities, Inc. | 4,548 | 647,589 | ||||||
American Tower Corp. | 6,463 | 1,262,224 | ||||||
Camden Property Trust | 5,951 | 598,968 | ||||||
Douglas Emmett, Inc. | 14,520 | 598,079 | ||||||
Equinix, Inc. | 1,484 | 674,775 | ||||||
Host Hotels & Resorts, Inc. | 13,170 | 253,391 | ||||||
4,035,026 | ||||||||
TOTAL REAL ESTATE | 4,035,026 | |||||||
Utilities (6.61%) | ||||||||
Utilities (6.61%) | ||||||||
Avangrid, Inc. | 14,314 | 733,020 | ||||||
Edison International | 13,636 | 869,568 | ||||||
Exelon Corp. | 16,628 | 847,197 | ||||||
NextEra Energy, Inc. | 6,054 | 1,177,140 | ||||||
NRG Energy, Inc. | 9,213 | 379,299 | ||||||
PG&E Corp.(a) | 4,401 | 99,110 | ||||||
Sempra Energy | 9,673 | 1,237,660 |
Value | ||||||||
Shares | (Note 2) | |||||||
Utilities (continued) | ||||||||
UGI Corp. | 7,062 | $ | 384,950 | |||||
5,727,944 | ||||||||
TOTAL UTILITIES | 5,727,944 | |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $75,770,493) | 85,798,651 | |||||||
EXCHANGE TRADED FUNDS (0.55%) | ||||||||
Vanguard® High Dividend Yield ETF | 5,351 | 471,370 | ||||||
TOTAL EXCHANGE TRADED FUNDS | ||||||||
(Cost $467,690) | 471,370 |
7-Day Yield | Shares | Value (Note 2) | ||||||||||
SHORT-TERM INVESTMENTS (0.17%) | ||||||||||||
SHORT-TERM CASH EQUIVALENTS (0.17%) | ||||||||||||
State Street Institutional Treasury Plus Money Market Fund | 2.346 | % | 147,399 | 147,399 | ||||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||||||
(Cost $147,399) | 147,399 | |||||||||||
TOTAL INVESTMENTS (99.74%) | ||||||||||||
(Cost $76,385,582) | $ | 86,417,420 | ||||||||||
Other Assets In Excess Of Liabilities (0.26%) | 227,219 | |||||||||||
NET ASSETS (100.00%) | $ | 86,644,639 |
(a) | Non-Income Producing Security. |
For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets.
See Notes to Financial Statements.
85| April 30, 2019
ALPS | WMC Research Value Fund | |
Statement of Assets and Liabilities | April 30, 2019 (Unaudited) |
ASSETS | ||||
Investments, at value | $ | 86,417,420 | ||
Foreign currency, at value (Cost $9,870) | 9,870 | |||
Receivable for investments sold | 252,122 | |||
Receivable for shares sold | 257 | |||
Dividends receivable | 88,091 | |||
Prepaid expenses and other assets | 18,771 | |||
Total Assets | 86,786,531 | |||
LIABILITIES | ||||
Payable for investments purchased | 19,718 | |||
Payable for shares redeemed | 15,714 | |||
Investment advisory fees payable | 38,073 | |||
Administration and transfer agency fees payable | 34,074 | |||
Distribution and services fees payable | 10,436 | |||
Professional fees payable | 14,808 | |||
Accrued expenses and other liabilities | 9,069 | |||
Total Liabilities | 141,892 | |||
NET ASSETS | $ | 86,644,639 | ||
NET ASSETS CONSIST OF | ||||
Paid-in capital | $ | 76,680,744 | ||
Total distributable earnings | 9,963,895 | |||
NET ASSETS | $ | 86,644,639 | ||
INVESTMENTS, AT COST | $ | 76,385,582 | ||
PRICING OF SHARES | ||||
Investor Class: | ||||
Net Asset Value, offering and redemption price per share | $ | 8.48 | ||
Net Assets | $ | 48,849,471 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 5,760,101 | |||
Class A: | ||||
Net Asset Value, offering and redemption price per share | $ | 8.48 | ||
Net Assets | $ | 10,300 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 1,214 | |||
Maximum offering price per share ((NAV/0.9450), based on maximum sales charge of 5.50% of the offering price) | $ | 8.97 | ||
Class C: | ||||
Net Asset Value, offering and redemption price per share(a) | $ | 7.96 | ||
Net Assets | $ | 609,797 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 76,604 | |||
Class I: | ||||
Net Asset Value, offering and redemption price per share | $ | 8.77 | ||
Net Assets | $ | 37,175,071 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 4,236,799 |
(a) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. For a description of a possible sales charge, please see the Fund's Prospectus. |
See Notes to Financial Statements.
86| April 30, 2019
ALPS | WMC Research Value Fund | |
Statement of Operations | For the Six Months Ended April 30, 2019 (Unaudited) |
INVESTMENT INCOME | ||||
Dividends | $ | 1,012,320 | ||
Foreign taxes withheld on dividends | (4,822 | ) | ||
Total Investment Income | 1,007,498 | |||
EXPENSES | ||||
Investment advisory fees | 388,735 | |||
Administrative fees | 68,602 | |||
Transfer agency fees | 11,983 | |||
Distribution and service fees | ||||
Investor Class | 57,399 | |||
Class A | 12 | |||
Class C | 3,089 | |||
Professional fees | 13,181 | |||
Reports to shareholders and printing fees | 4,916 | |||
State registration fees | 28,221 | |||
Insurance fees | 342 | |||
Custody fees | 6,022 | |||
Trustees' fees and expenses | 1,383 | |||
Miscellaneous expenses | 7,335 | |||
Total Expenses | 591,220 | |||
Less fees waived/reimbursed by investment advisor (Note 8) | ||||
Investor Class | (91,182 | ) | ||
Class A | (19 | ) | ||
Class C | (1,226 | ) | ||
Class I | (69,956 | ) | ||
Net Expenses | 428,837 | |||
Net Investment Income | 578,661 | |||
Net realized loss on investments | (236,644 | ) | ||
Net realized gain on foreign currency transactions | 293 | |||
Net Realized Loss | (236,351 | ) | ||
Net change in unrealized appreciation on investments | 5,928,005 | |||
Net change in unrealized depreciation on translation of assets and liabilities denominated in foreign currencies | (21 | ) | ||
Net Change in Unrealized Appreciation | 5,927,984 | |||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS | 5,691,633 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 6,270,294 |
See Notes to Financial Statements.
87| April 30, 2019
ALPS | WMC Research Value Fund |
Statements of Changes in Net Assets |
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 578,661 | $ | 881,330 | ||||
Net realized gain/(loss) | (236,351 | ) | 6,662,593 | |||||
Net change in unrealized appreciation/(depreciation) | 5,927,984 | (6,612,864 | ) | |||||
Net Increase in Net Assets Resulting from Operations | 6,270,294 | 931,059 | ||||||
TOTAL DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class(a) | (4,321,009 | ) | (4,057,605 | ) | ||||
Class A(b) | (889 | ) | – | |||||
Class C | (68,920 | ) | (62,055 | ) | ||||
Class I | (3,278,914 | ) | (3,240,424 | ) | ||||
Net Decrease in Net Assets from Distributions | (7,669,732 | ) | (7,360,084 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class(a) | 139,304 | 385,082 | ||||||
Class A(b) | 8 | 10,000 | ||||||
Class C | 59,166 | 17,226 | ||||||
Class I | 1,743,617 | 3,480,703 | ||||||
Dividends reinvested | ||||||||
Investor Class(a) | 4,147,136 | 3,894,647 | ||||||
Class A(b) | 889 | – | ||||||
Class C | 49,009 | 43,320 | ||||||
Class I | 3,278,914 | 3,239,582 | ||||||
Shares redeemed | ||||||||
Investor Class(a) | (1,281,204 | ) | (3,667,989 | ) | ||||
Class A(b) | (8 | ) | – | |||||
Class C | (170,909 | ) | (22,249 | ) | ||||
Class I | (4,130,348 | ) | (9,536,622 | ) | ||||
Net Increase/(Decrease) in Net Assets Derived from Beneficial Interest Transactions | 3,835,574 | (2,156,300 | ) | |||||
Net increase/(decrease) in net assets | 2,436,136 | (8,585,325 | ) | |||||
NET ASSETS | ||||||||
Beginning of period | 84,208,503 | 92,793,828 | ||||||
End of period | $ | 86,644,639 | $ | 84,208,503 |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Class A commenced operations on June 12, 2018. |
See Notes to Financial Statements.
88| April 30, 2019
ALPS | WMC Research Value Fund – Investor Class |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015(b) | For the Fiscal Period Ended October 31, 2014(c) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 8.71 | $ | 9.40 | $ | 8.37 | $ | 11.57 | $ | 12.54 | $ | 11.92 | $ | 10.01 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(d) | 0.05 | 0.08 | 0.06 | 0.06 | 0.06 | 0.03 | 0.06 | |||||||||||||||||||||
Net realized and unrealized gain | 0.53 | 0.01 | 1.24 | 0.08 | 0.23 | 0.59 | 2.09 | |||||||||||||||||||||
Total from investment operations | 0.58 | 0.09 | 1.30 | 0.14 | 0.29 | 0.62 | 2.15 | |||||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.10 | ) | (0.08 | ) | (0.01 | ) | (0.02 | ) | (0.06 | ) | – | (0.11 | ) | |||||||||||||||
From net realized gains | (0.71 | ) | (0.70 | ) | (0.26 | ) | (3.32 | ) | (1.20 | ) | – | (0.13 | ) | |||||||||||||||
Total distributions | (0.81 | ) | (0.78 | ) | (0.27 | ) | (3.34 | ) | (1.26 | ) | – | (0.24 | ) | |||||||||||||||
Net increase/(decrease) in net asset value | (0.23 | ) | (0.69 | ) | 1.03 | (3.20 | ) | (0.97 | ) | 0.62 | 1.91 | |||||||||||||||||
Net asset value, end of period | $ | 8.48 | $ | 8.71 | $ | 9.40 | $ | 8.37 | $ | 11.57 | $ | 12.54 | $ | 11.92 | ||||||||||||||
TOTAL RETURN(e) | 7.72 | % | 0.62 | % | 15.81 | % | 2.09 | % | 2.57 | % | 5.20 | % | 21.70 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 48,849 | $ | 46,635 | $ | 49,637 | $ | 49,814 | $ | 55,608 | $ | 59,628 | $ | 59,069 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.55 | %(f) | 1.53 | % | 1.51 | % | 1.53 | % | 1.49 | % | 1.48 | %(f) | 1.47 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.15 | %(f) | 1.15 | % | 1.15 | % | 1.15 | %(g) | 1.40 | % | 1.40 | %(f) | 1.40 | % | ||||||||||||||
Ratio of net investment income to average net assets | 1.30 | %(f) | 0.86 | % | 0.62 | % | 0.66 | % | 0.53 | % | 0.48 | %(f) | 0.52 | % | ||||||||||||||
Portfolio turnover rate(h) | 28 | % | 74 | % | 70 | % | 78 | % | 114 | % | 13 | % | 19 | % |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Effective February 28, 2015 the Fund changed its name from the ALPS | WMC Disciplined Value Fund to the ALPS | WMC Research Value Fund. |
(c) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(d) | Calculated using the average shares method. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(f) | Annualized. |
(g) | Effective November 1, 2015 the contractual expense limitation changed from 1.40% to 1.15%. |
(h) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
89| April 30, 2019
ALPS | WMC Research Value Fund – Class A |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period June 12, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period | $ | 8.71 | $ | 9.11 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.05 | 0.03 | ||||||
Net realized and unrealized gain/(loss) | 0.53 | (0.43 | ) | |||||
Total from investment operations | 0.58 | (0.40 | ) | |||||
DISTRIBUTIONS: | ||||||||
From net investment income | (0.10 | ) | – | |||||
From net realized gains | (0.71 | ) | – | |||||
Total distributions | (0.81 | ) | – | |||||
Net (decrease) in net asset value | (0.23 | ) | (0.40 | ) | ||||
Net asset value, end of period | $ | 8.48 | $ | 8.71 | ||||
TOTAL RETURN(b) | 7.72 | % | (4.39 | )% | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 10 | $ | 10 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.55 | %(c) | 1.57 | %(c) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.15 | %(c) | 1.15 | %(c) | ||||
Ratio of net investment income to average net assets | 1.31 | %(c) | 0.87 | %(c) | ||||
Portfolio turnover rate(d) | 28 | % | 74 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
90| April 30, 2019
ALPS | WMC Research Value Fund – Class C |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015(a) | For the Fiscal Period Ended October 31, 2014(b) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 8.24 | $ | 8.99 | $ | 8.06 | $ | 11.32 | $ | 12.36 | $ | 11.80 | $ | 9.93 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income/(loss)(c) | 0.02 | 0.01 | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.02 | ) | (0.02 | ) | ||||||||||||||||
Net realized and unrealized gain | 0.50 | (0.00 | )(d) | 1.20 | 0.08 | 0.24 | 0.58 | 2.08 | ||||||||||||||||||||
Total from investment operations | 0.52 | 0.01 | 1.19 | 0.07 | 0.21 | 0.56 | 2.06 | |||||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.09 | ) | (0.06 | ) | (0.00 | )(d) | (0.01 | ) | (0.05 | ) | – | (0.06 | ) | |||||||||||||||
From net realized gains | (0.71 | ) | (0.70 | ) | (0.26 | ) | (3.32 | ) | (1.20 | ) | – | (0.13 | ) | |||||||||||||||
Total distributions | (0.80 | ) | (0.76 | ) | (0.26 | ) | �� | (3.33 | ) | (1.25 | ) | – | (0.19 | ) | ||||||||||||||
Net increase/(decrease) in net asset value | (0.28 | ) | (0.75 | ) | 0.93 | (3.26 | ) | (1.04 | ) | 0.56 | 1.87 | |||||||||||||||||
Net asset value, end of period | $ | 7.96 | $ | 8.24 | $ | 8.99 | $ | 8.06 | $ | 11.32 | $ | 12.36 | $ | 11.80 | ||||||||||||||
TOTAL RETURN(e) | 7.37 | % | (0.19 | )% | 15.02 | % | 1.28 | % | 1.87 | % | 4.75 | % | 20.97 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 610 | $ | 711 | $ | 734 | $ | 449 | $ | 870 | $ | 257 | $ | 133 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 2.30 | %(f) | 2.28 | % | 2.27 | % | 2.27 | % | 2.24 | % | 2.24 | %(f) | 2.22 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.90 | %(f) | 1.90 | % | 1.90 | % | 1.90 | %(g) | 2.15 | % | 2.15 | %(f) | 2.15 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | 0.58 | %(f) | 0.11 | % | (0.15 | )% | (0.07 | )% | (0.22 | )% | (0.30 | )%(f) | (0.23 | )% | ||||||||||||||
Portfolio turnover rate(h) | 28 | % | 74 | % | 70 | % | 78 | % | 114 | % | 13 | % | 19 | % |
(a) | Effective February 28, 2015 the Fund changed its name from the ALPS | WMC Disciplined Value Fund to the ALPS | WMC Research Value Fund. |
(b) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(c) | Calculated using the average shares method. |
(d) | Less than $0.005 or ($0.005) per share. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(f) | Annualized. |
(g) | Effective November 1, 2015 the contractual expense limitation changed from 2.15% to 1.90%. |
(h) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
91| April 30, 2019
ALPS | WMC Research Value Fund – Class I |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015(a) | For the Fiscal Period Ended October 31, 2014(b) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 8.98 | $ | 9.64 | $ | 8.56 | $ | 11.75 | $ | 12.69 | $ | 12.05 | $ | 10.10 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(c) | 0.07 | 0.10 | 0.08 | 0.08 | 0.09 | 0.05 | 0.09 | |||||||||||||||||||||
Net realized and unrealized gain | 0.53 | 0.02 | 1.28 | 0.08 | 0.23 | 0.59 | 2.12 | |||||||||||||||||||||
Total from investment operations | 0.60 | 0.12 | 1.36 | 0.16 | 0.32 | 0.64 | 2.21 | |||||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.10 | ) | (0.08 | ) | (0.02 | ) | (0.03 | ) | (0.06 | ) | – | (0.13 | ) | |||||||||||||||
From net realized gains | (0.71 | ) | (0.70 | ) | (0.26 | ) | (3.32 | ) | (1.20 | ) | – | (0.13 | ) | |||||||||||||||
Total distributions | (0.81 | ) | (0.78 | ) | (0.28 | ) | (3.35 | ) | (1.26 | ) | – | (0.26 | ) | |||||||||||||||
Net increase/(decrease) in net asset value | (0.21 | ) | (0.66 | ) | 1.08 | (3.19 | ) | (0.94 | ) | 0.64 | 1.95 | |||||||||||||||||
Net asset value, end of period | $ | 8.77 | $ | 8.98 | $ | 9.64 | $ | 8.56 | $ | 11.75 | $ | 12.69 | $ | 12.05 | ||||||||||||||
TOTAL RETURN(d) | 7.76 | % | 0.99 | % | 16.10 | % | 2.24 | % | 2.86 | % | 5.31 | % | 22.11 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 37,175 | $ | 36,853 | $ | 42,422 | $ | 42,495 | $ | 40,915 | $ | 43,502 | $ | 44,729 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.30 | %(e) | 1.28 | % | 1.26 | % | 1.28 | % | 1.24 | % | 1.23 | %(e) | 1.22 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.90 | %(e) | 0.90 | % | 0.90 | % | 0.90 | %(f) | 1.15 | % | 1.15 | %(e) | 1.15 | % | ||||||||||||||
Ratio of net investment income to average net assets | 1.57 | %(e) | 1.11 | % | 0.87 | % | 0.90 | % | 0.78 | % | 0.74 | %(e) | 0.77 | % | ||||||||||||||
Portfolio turnover rate(g) | 28 | % | 74 | % | 70 | % | 78 | % | 114 | % | 13 | % | 19 | % |
(a) | Effective February 28, 2015 the Fund changed its name from the ALPS | WMC Disciplined Value Fund to the ALPS | WMC Research Value Fund. |
(b) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(c) | Calculated using the average shares method. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(e) | Annualized. |
(f) | Effective November 1, 2015 the contractual expense limitation changed from 1.15% to 0.90%. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
92| April 30, 2019
Clough China Fund | |
Management Commentary | April 30, 2019 (Unaudited) |
The Clough China Fund (the “Fund”) had a net return of 16.37% for the semiannual period from November 1, 2018 to April 30, 2019. This compares to 21.41% for the broader market MSCI China Index. From an individual stock perspective over the period, our investments in Tencent, Alibaba, China Tower, Kweichow Moutai and Ping An Insurance contributed most positively, while investments in Baozun, Pinduoduo, China International Capital Corporation, Postal Savings Bank, and Orion Corporation detracted the most from performance.
Over the period, the market experienced volatility, with the market flatlining through December before rallying 21% through April 30, 2019. For 2018, China was not immune to concerns over rising inflation and interest rates, and MSCI China Index was down 19% for the year. Also casting a pall over sentiment were President Trump’s comments regarding the United States’ large and growing trade deficit with China. It’s difficult to take an unequivocal position on the outcome of the trade situation between the U.S. and China, but there are some facts that are irrefutable. The U.S. has a large trade deficit with China, hitting $375bn in 2017, and China’s “Made in 2025” policy objectives, which were laid out in a speech made by China’s President Xi Jinping in May 2015, are deeply ingrained in China’s state-directed industries. Quick changes to industrial policy do not happen easily and thus it is difficult to see an immediate solution to the U.S.’s demand for a reduction in China’s trade surplus. In our view, an all-out trade war is not likely, because it would be detrimental to not only these two economies, but the global economy. Given our view of the most likely outcome, we have primarily focused the Fund’s portfolio exposure to domestically-oriented consumption stocks where we see structural opportunities for growth. This focus can be seen in some of our top performers over the last six months.
Tencent is a stock that we have talked about a lot over the past years. The company’s dominance as a gaming and social media platform continues to help the company generate very strong revenue and income growth. Unlike some of its competitors in the Internet sector, Tencent has been able to sustain growth without compromising margins. As of April 30, 2019, it currently remains a core holding for the Fund.
Alibaba is another core position for the Fund. We have talked about the dynamics and the strength of the Chinese consumer over the years, and in our view, we are still in the relatively early innings of this story. Revenue growth continues to be very strong at Alibaba, with just announced revenue growing 40% from the previous year. We believe the initial public offering (“IPO”) for its financial services arm, Ant Financial, will provide an additional catalyst for the stock.
China Tower is a key beneficiary of the 5G technology roll out in China. Deployment of 5G will lead to faster mobile speeds enabling even more video and data consumption through significantly faster download speeds. The three Chinese telecom companies spun out their towers as China Tower, a publicly listed company. Now China Tower owns the entire telecom tower infrastructure in China. We really like the tower business and have invested in these businesses
around the world. We also believe that growth is likely to accelerate as China rolls out 5G across the country. The stock is still valued attractively to other tower companies.
Kweichow Moutai is a leading liquor brand in China which we have owned for many years. For the last few months, we have been very bullish about their margins expanding further. They have decided to bring their distribution in house which we believe will lead to a structural margin expansion and significant earnings growth.
Ping An is China’s largest privately-owned insurance company. There are a number of reasons we are bullish on Ping An. First, the average Chinese consumer has reached a level of wealth where insurance products become a core part of an individual/families’ asset allocation basket. In the past, insurance products were largely savings products, with modest protection components in place. In the last couple of years, regulators have required insurance companies to get back to the basics and offer more standard insurance protection products. This has a number of positive implications for the industry, but most importantly, China’s insurance industry will look much more like a global insurance entity on the asset and liability side, likely creating an environment of steadier and less volatile growth. Valuations, though, have not reflected this structural change in the business.
Now onto those stocks that have most detracted from performance for the Fund over the semiannual period.
Baozun is a company that we have liked for a long time. They provide logistics capabilities for brands to sell their goods in China across multiple platforms (e.g., Alibaba), or on their own websites. The business is growing much faster than the growth of e-commerce in China. However, there was a sudden change in the CFO of the company.
Pinduoduo is a relatively new player in e-commerce. They have been supported by Tencent and are able to understand user demand by analyzing social media. Founded in 2015, the company has experienced triple digit growth in gross merchandise volume (“GMV”) and is now viewed as a serious competitor. The company currently burns cash as it funds its explosive growth. We have started to see larger players, especially Alibaba, trying to respond to Pinduoduo and expect the competitive intensity to increase.
China International Capital is one of the high-quality brokers in China. We expect the weighting for China to increase in the MSCI indices starting this year, leading to more business for Chinese brokers. Unfortunately, these businesses are also exposed to the volatility of the Chinese stock market, but we remain confident in our thesis.
Postal Savings Bank of China is a stock where the markets have overly focused on the risks of a non-performing loan (“NPL”) problem like it has for the banking sector as a whole. We believe that China’s credit situation is far from critical, and with banks trading at substantial discounts to book value, with mid-teen returns
93| April 30, 2019
Clough China Fund | |
Management Commentary | April 30, 2019 (Unaudited) |
on equity and consensus 2019 dividend yields in the low 5% range, there is potentially tremendous value in these stocks. We think the worst is behind these companies from an NPL perspective. On the revenue front, as Chinese consumers’ wealth continues to increase, demand for different financial products will grow.
Orion is a Korean confectionary which has a strong presence in China (~50% of revenues). It had a difficult time with steep sales decline in 2017 given the THAAD (Terminal High Altitude Area Defense) related disputes between China and Korea. Our thesis had been based on an expected recovery in this business. However, this is taking longer to play out than expected and we have since rotated towards higher conviction ideas.
Anupam Bose, Portfolio Manager
Chuck Clough, Portfolio Manager
Investments in international and emerging markets securities include exposure to risks such as currency fluctuations, foreign taxes and regulations, and the potential for illiquid markets and political instability.
The views of the authors and information discussed in this commentary are as of the date of publication, are subject to change, and may not reflect the writer's current views. The views expressed are those of the authors only, and represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the fund(s) or any securities or any sectors mentioned in this letter. The subject matter contained in this letter has been derived from several sources believed to be reliable and accurate at the time of compilation. Neither ALPS, Advisors, Inc., Clough Capital Partners, LP, nor the Fund accepts any liability for losses either direct or consequential caused by the use of this information.
94| April 30, 2019
Clough China Fund | |
Performance Update | April 30, 2019 (Unaudited) |
Performance of $10,000 Initial Investment(as of April 30, 2019)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception.Past performance does not guarantee future results.This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns(as of April 30, 2019)
6 Month | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception3 | Total Expense Ratio | What You Pay4 | |
Class I1 (NAV) | 16.37% | -11.08% | 9.43% | 5.27% | 8.34% | 10.08% | 1.86% | 1.70% |
Investor5(NAV) | 16.17% | -11.32% | 9.17% | 4.95% | 7.99% | 9.65% | 2.10% | 1.95% |
Class A (NAV) | 16.17% | -11.35% | 9.16% | 4.94% | 7.98% | 9.65% | 2.22% | 1.95% |
Class A (MOP) | 9.79% | -16.23% | 7.13% | 3.75% | 7.38% | 9.19% | ||
Class C (NAV) | 15.78% | -11.98% | 8.35% | 4.16% | 7.16% | 8.84% | 2.85% | 2.70% |
Class C (CDSC) | 14.78% | -12.78% | 8.35% | 4.16% | 7.16% | 8.84% | ||
MSCI China Index2 | 21.32% | -4.12% | 16.89% | 10.42% | 8.99% | 10.91% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $ 1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million. The Fund imposes a 2.00% redemption fee on shares held for less than 30 days.
Performance less than 1 year is cumulative.
The performance shown for the Clough China Fund for periods prior to January 15, 2010, reflects the performance of the Old Mutual China Fund, a series of Old Mutual Funds I (as a result of a prior reorganization of the Old Mutual China Fund into the Clough China Fund).
95| April 30, 2019
Clough China Fund | |
Performance Update | April 30, 2019 (Unaudited) |
Performance shown for Class A shares prior to June 12, 2018 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class A shares.
1 | Prior to close of business on January 15, 2010, Class I was known as Institutional Class of the Old Mutual China Fund. |
2 | The Morgan Stanley Capital International (“MSCI”) China Index is constructed according to the MSCI Global Investable Market Index (GIMI) family. The MSCI China Index is part of the MSCI Emerging Markets Index. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
3 | Fund Inception date of December 30, 2005 for Investor Class and Classes C and I; Fund Inception date of June 12, 2018 for Class A. |
4 | What You Pay reflects the Advisor’s decision to contractually limit expenses through February 28, 2020. Please see the prospectus for additional information. |
5 | Prior to December 1, 2017, Investor Class was known as Class A. |
The Fund is “non-diversified” and will generally be more volatile than diversified funds.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. This Fund is not suitable for all investors and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Investing in China, Hong Kong and Taiwan involves risk and considerations not present when investing in more established securities markets. The Fund may be more susceptible to the economic, market, political and local risks of these regions than a fund that is more geographically diversified.
Top Ten Holdings(as a % of Net Assets)†
Alibaba Group Holding, Ltd. | 12.01 | % | ||
Tencent Holdings, Ltd. | 11.26 | % | ||
Ping An Insurance Group Co. of China, Ltd. | 7.12 | % | ||
CNOOC, Ltd. | 5.43 | % | ||
Altaba, Inc. | 5.29 | % | ||
China Tower Corp., Ltd. | 4.47 | % | ||
Micron Technology, Inc. | 4.15 | % | ||
TAL Education Group | 3.94 | % | ||
Kweichow Moutai Co., Ltd. | 3.78 | % | ||
China Construction Bank Corp. | 3.34 | % | ||
Top Ten Holdings | 60.79 | % |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents indicative values only. Excludes cash & cash equivalents. |
Sector Allocation^(as a % of Net Assets)
^ | Notional Value of Derivative Exposure included. |
96| April 30, 2019
Clough China Fund | |
Statement of Investments | April 30, 2019 (Unaudited) |
Shares | (Note 2) | |||||||
CLOSED-END FUNDS (5.29%) | ||||||||
Retail - Discretionary (5.29%) | ||||||||
Altaba, Inc.(a) | 28,600 | $ | 2,156,154 | |||||
TOTAL CLOSED-END FUNDS | ||||||||
(Cost $1,858,511) | 2,156,154 | |||||||
COMMON STOCKS (93.07%) | ||||||||
Communications (3.04%) | ||||||||
Telecommunications (3.04%) | ||||||||
China Mobile, Ltd., ADR | 11,517 | 186,794 | ||||||
China Telecom Corp., Ltd., Class H | 270,400 | 140,143 | ||||||
SoftBank Group Corp. | 8,600 | 911,870 | ||||||
1,238,807 | ||||||||
TOTAL COMMUNICATIONS | 1,238,807 | |||||||
Consumer Discretionary (27.31%) | ||||||||
Automotive Manufacturing (2.80%) | ||||||||
Guangzhou Automobile Group Co., Ltd., Class H | 1,062,000 | 1,143,803 | ||||||
Consumer Services (3.94%) | ||||||||
TAL Education Group, ADR(a) | 41,800 | 1,608,046 | ||||||
Gaming, Lodging & Restaurants (3.31%) | ||||||||
Galaxy Entertainment Group, Ltd. | 180,060 | 1,348,512 | ||||||
Retail - Consumer Discretionary (17.26%) | ||||||||
Alibaba Group Holding, Ltd., Sponsored ADR(a) | 26,390 | 4,897,192 | ||||||
ANTA Sports Products, Ltd. | 166,000 | 1,167,501 | ||||||
Lifestyle International Holdings, Ltd. | 360,500 | 628,293 | ||||||
Pinduoduo, Inc., ADR(a) | 15,568 | 346,077 | ||||||
7,039,063 | ||||||||
TOTAL CONSUMER DISCRETIONARY | 11,139,424 | |||||||
Energy (5.43%) | ||||||||
Oil, Gas & Coal (5.43%) | ||||||||
CNOOC, Ltd. | 1,219,000 | 2,214,111 | ||||||
TOTAL ENERGY | 2,214,111 | |||||||
Financials (25.64%) | ||||||||
Banking (6.99%) | ||||||||
Bank of China, Ltd., Class H | 1,196,437 | 571,305 | ||||||
China Construction Bank Corp., Class H | 1,547,080 | 1,363,853 | ||||||
Industrial & Commercial Bank of China, Ltd., Class H | 925,967 | 696,475 |
Shares | (Note 2) | |||||||
Banking (continued) | ||||||||
Postal Savings Bank of China, Ltd., Class H | 359,958 | $ | 219,045 | |||||
2,850,678 | ||||||||
Institutional Financial Services (4.68%) | ||||||||
China International Capital Corp., Ltd., Class H | 420,000 | 903,364 | ||||||
CITIC Securities Co., Ltd. | 463,900 | 1,005,518 | ||||||
1,908,882 | ||||||||
Insurance (10.27%) | ||||||||
AIA Group, Ltd. | 125,400 | 1,284,025 | ||||||
Ping An Insurance Group Co. of China, Ltd., Class H | 239,860 | 2,903,425 | ||||||
4,187,450 | ||||||||
Real Estate (3.70%) | ||||||||
Future Land Development Holdings, Ltd. | 596,000 | 710,762 | ||||||
Sunac China Holdings, Ltd. | 155,100 | 799,324 | ||||||
1,510,086 | ||||||||
TOTAL FINANCIALS | 10,457,096 | |||||||
Health Care (0.85%) | ||||||||
Biotechnology & Pharmaceuticals (0.85%) | ||||||||
BeiGene, Ltd., ADR(a) | 2,800 | 347,844 | ||||||
TOTAL HEALTH CARE | 347,844 | |||||||
Industrials (4.47%) | ||||||||
Engineering & Construction Services (4.47%) | ||||||||
China Tower Corp., Ltd., Class H | 6,736,000 | 1,823,686 | ||||||
TOTAL INDUSTRIALS | 1,823,686 | |||||||
Materials (2.08%) | ||||||||
Construction Materials Manufacturing (2.08%) | ||||||||
Anhui Conch Cement Co., Ltd., Class H | 79,000 | 482,202 | ||||||
China Resources Cement Holdings, Ltd. | 366,000 | 366,973 | ||||||
849,175 | ||||||||
TOTAL MATERIALS | 849,175 | |||||||
Technology (24.25%) | ||||||||
Semiconductors (8.88%) | ||||||||
Analog Devices, Inc. | 7,700 | 895,048 | ||||||
Inphi Corp.(a) | 8,700 | 397,242 | ||||||
KLA-Tencor Corp. | 3,400 | 433,432 | ||||||
Micron Technology, Inc.(a) | 40,200 | 1,690,812 |
97| April 30, 2019
Clough China Fund | |
Statement of Investments | April 30, 2019 (Unaudited) |
Shares | (Note 2) | |||||||||||
Semiconductors (continued) | ||||||||||||
Xilinx, Inc. | 1,730 | $ | 207,842 | |||||||||
3,624,376 | ||||||||||||
Software (15.37%) | ||||||||||||
Momo, Inc., Sponsored ADR | 24,630 | 863,774 | ||||||||||
NetEase, Inc., ADR | 2,850 | 810,911 | ||||||||||
Tencent Holdings, Ltd. | 93,200 | 4,593,610 | ||||||||||
6,268,295 | ||||||||||||
TOTAL TECHNOLOGY | 9,892,671 | |||||||||||
TOTAL COMMON STOCKS | ||||||||||||
(Cost $31,770,515) | 37,962,814 | |||||||||||
SHORT TERM SECURITY (0.43%) | ||||||||||||
Money Market Fund (0.43%) | ||||||||||||
Blackrock Liquidity Funds, T-Fund | 0.990 | % | 174,326 | 174,326 | ||||||||
TOTAL SHORT TERM SECURITY | ||||||||||||
(Cost $174,326) | 174,326 | |||||||||||
TOTAL INVESTMENTS (98.79%) | ||||||||||||
(Cost $33,803,352) | $ | 40,293,294 | ||||||||||
Other Assets In Excess Of Liabilities (1.21%) | 493,569 | |||||||||||
NET ASSETS (100.00%) | $ | 40,786,863 |
(a) | Non-Income Producing Security. |
TOTAL RETURN SWAP CONTRACTS(a)
Swap Counterparty | Reference Obligation | Notional Amount | Floating Rate/Fixed Amount Paid by Fund* | Termination Date | Value | Unrealized Appreciation | ||||||||||||
Morgan Stanley | Gree Electric Appliances, Inc. | $ | 394,553 | 250 bps + 1D FEDEF | 02/17/2021 | $ | 502,438 | $ | 107,885 | |||||||||
Morgan Stanley | Jiangsu Yanghe Brewery | 231,272 | 255 bps + 1D FEDEF | 10/01/2020 | 261,979 | 30,707 | ||||||||||||
Morgan Stanley | Kweichow Moutai Co., Ltd. | 1,208,588 | 250 bps + 1D FEDEF | 05/29/2020 | 1,543,237 | 334,649 | ||||||||||||
Morgan Stanley | Midea Group Co Ltd | 212,158 | 250 bps + 1D FEDEF | 05/29/2020 | 225,567 | 13,409 | ||||||||||||
$ | 2,046,571 | $ | 2,533,221 | $ | 486,650 |
Swap Counterparty | Reference Obligation | Notional Amount | Floating Rate/Fixed Amount Paid by Fund* | Termination Date | Value | Unrealized Depreciation | ||||||||||||
Morgan Stanley | Hangzhou Hikvision Digital | $ | 1,057,052 | 250 bps + 1D FEDEF | 05/29/2020 | $ | 955,238 | $ | (101,814 | ) | ||||||||
Morgan Stanley | Jiangsu Yanghe Brewery | 1,087,414 | 255 bps + 1D FEDEF | 10/01/2020 | 1,060,141 | (27,273 | ) | |||||||||||
$ | 2,144,466 | $ | 2,015,379 | $ | (129,087 | ) |
98| April 30, 2019
Clough China Fund | |
Statement of Investments | April 30, 2019 (Unaudited) |
(a) | For long positions in the total return swap, the Fund receives payments based on any positive return of the Reference Obligation less the rate paid by the Fund. The Fund makes payments on any negative return of such Reference Obligations plus the rate paid by the Fund. For the short positions in the total return swap, the Fund makes payments based on any positive return of the Reference Obligation less the rate paid by the Fund. The Fund receives payments on any negative return of such Reference Obligations plus the rate paid by the Fund. |
* | Payments are made weekly. |
Investment Abbreviations:
1D FEDEF - Federal Funds Effective Rate (Daily)
For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets.
See Notes to Financial Statements.
99| April 30, 2019
Clough China Fund | |
Statement of Assets and Liabilities | April 30, 2019 (Unaudited) |
ASSETS | ||||
Investments, at value | $ | 40,293,294 | ||
Foreign currency, at value (Cost $261,724) | 261,672 | |||
Unrealized appreciation on total return swap contracts | 486,650 | |||
Receivable for investments sold | 1,911,636 | |||
Receivable for shares sold | 25,106 | |||
Dividends receivable | 5,081 | |||
Prepaid expenses and other assets | 21,712 | |||
Total Assets | 43,005,151 | |||
LIABILITIES | ||||
Payable for investments purchased | 1,952,558 | |||
Payable for interest expense on total return swap contracts | 28,606 | |||
Payable for shares redeemed | 8,333 | |||
Unrealized depreciation on total return swap contracts | 129,087 | |||
Investment advisory fees payable | 39,733 | |||
Administration and transfer agency fees payable | 21,447 | |||
Distribution and services fees payable | 5,934 | |||
Professional fees payable | 16,000 | |||
Accrued expenses and other liabilities | 16,590 | |||
Total Liabilities | 2,218,288 | |||
NET ASSETS | $ | 40,786,863 | ||
NET ASSETS CONSIST OF | ||||
Paid-in capital | $ | 30,537,138 | ||
Total distributable earnings | 10,249,725 | |||
NET ASSETS | $ | 40,786,863 | ||
INVESTMENTS, AT COST | $ | 33,803,352 | ||
PRICING OF SHARES | ||||
Investor Class: | ||||
Net Asset Value, offering and redemption price per share | $ | 22.83 | ||
Net Assets | $ | 12,426,699 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 544,303 | |||
Class A: | ||||
Net Asset Value, offering and redemption price per share | $ | 22.83 | ||
Net Assets | $ | 117,818 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 5,161 | |||
Maximum offering price per share ((NAV/0.9450), based on maximum sales charge of 5.50% of the offering price) | $ | 24.16 | ||
Class C: | ||||
Net Asset Value, offering and redemption price per share(a) | $ | 21.34 | ||
Net Assets | $ | 3,808,196 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 178,445 | |||
Class I: | ||||
Net Asset Value, offering and redemption price per share | $ | 23.50 | ||
Net Assets | $ | 24,434,150 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 1,039,914 |
(a) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. For a description of a possible sales charge, please see the Fund's Prospectus. |
See Notes to Financial Statements.
100| April 30, 2019
Clough China Fund | |
Statement of Operations | For the Six Months Ended April 30, 2019 (Unaudited) |
INVESTMENT INCOME | ||||
Dividends | $ | 88,117 | ||
Foreign taxes withheld on dividends | (2,164 | ) | ||
Total Investment Income | 85,953 | |||
EXPENSES | ||||
Investment advisory fees | 263,415 | |||
Administrative fees | 37,400 | |||
Transfer agency fees | 14,920 | |||
Distribution and service fees | ||||
Investor Class | 15,141 | |||
Class A | 53 | |||
Class C | 20,219 | |||
Professional fees | 13,456 | |||
Reports to shareholders and printing fees | 2,323 | |||
State registration fees | 29,738 | |||
Insurance fees | 167 | |||
Custody fees | 13,628 | |||
Trustees' fees and expenses | 675 | |||
Miscellaneous expenses | 6,462 | |||
Total Expenses | 417,597 | |||
Less fees waived/reimbursed by investment advisor (Note 8) | ||||
Investor Class | (15,103 | ) | ||
Class A | (32 | ) | ||
Class C | (5,445 | ) | ||
Class I | (29,750 | ) | ||
Net Expenses | 367,267 | |||
Net Investment Loss | (281,314 | ) | ||
Net realized gain on investments | 4,734,004 | |||
Net realized gain on total return swap contracts | 171,981 | |||
Net realized loss on foreign currency transactions | (8,931 | ) | ||
Net Realized Gain | 4,897,054 | |||
Net change in unrealized appreciation on investments | 708,980 | |||
Net change in unrealized appreciation on total return swap contracts | 488,179 | |||
Net change in unrealized appreciation on translation of assets and liabilities denominated in foreign currencies | 163 | |||
Net Change in Unrealized Appreciation | 1,197,322 | |||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS | 6,094,376 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 5,813,062 |
See Notes to Financial Statements.
101| April 30, 2019
Clough China Fund |
Statements of Changes in Net Assets |
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | |||||||
OPERATIONS | ||||||||
Net investment loss | $ | (281,314 | ) | $ | (172,131 | ) | ||
Net realized gain | 4,897,054 | 7,349,944 | ||||||
Net change in unrealized appreciation/(depreciation) | 1,197,322 | (17,015,165 | ) | |||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 5,813,062 | (9,837,352 | ) | |||||
TOTAL DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class(a) | (924,319 | ) | (47,964 | ) | ||||
Class A(b) | (563 | ) | – | |||||
Class C | (340,281 | ) | – | |||||
Class I | (1,650,936 | ) | (177,434 | ) | ||||
Net Decrease in Net Assets from Distributions | (2,916,099 | ) | (225,398 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class(a) | 350,161 | 797,648 | ||||||
Class A(b) | 111,416 | 10,000 | ||||||
Class C | 69,551 | 195,240 | ||||||
Class I | 253,685 | 2,041,850 | ||||||
Dividends reinvested | ||||||||
Investor Class(a) | 545,342 | 28,723 | ||||||
Class A(b) | 563 | – | ||||||
Class C | 184,852 | – | ||||||
Class I | 1,573,403 | 133,061 | ||||||
Shares redeemed, net of redemption fees | ||||||||
Investor Class(a) | (1,230,059 | ) | (3,138,078 | ) | ||||
Class A(b) | (22 | ) | – | |||||
Class C | (939,673 | ) | (1,338,866 | ) | ||||
Class I | (815,379 | ) | (10,205,187 | ) | ||||
Net Increase/(Decrease) in Net Assets Derived from Beneficial Interest Transactions | 103,840 | (11,475,609 | ) | |||||
Net increase/(decrease) in net assets | 3,000,803 | (21,538,359 | ) | |||||
NET ASSETS | ||||||||
Beginning of period | 37,786,060 | 59,324,419 | ||||||
End of period | $ | 40,786,863 | $ | 37,786,060 |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Class A commenced operations on June 12, 2018. |
See Notes to Financial Statements.
102| April 30, 2019
Clough China Fund – Investor Class |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(b) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 21.36 | $ | 27.22 | $ | 21.07 | $ | 21.74 | $ | 23.50 | $ | 20.72 | $ | 21.45 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income/(loss)(c) | (0.16 | ) | (0.08 | ) | 0.08 | 0.04 | 0.12 | 0.45 | 0.12 | |||||||||||||||||||
Net realized and unrealized gain/(loss) | 3.32 | (5.71 | ) | 6.09 | (0.40 | ) | (0.92 | ) | 2.33 | (0.69 | ) | |||||||||||||||||
Total from investment operations | 3.16 | (5.79 | ) | 6.17 | (0.36 | ) | (0.80 | ) | 2.78 | (0.57 | ) | |||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | – | (0.07 | ) | (0.02 | ) | (0.31 | ) | (0.50 | ) | – | (0.17 | ) | ||||||||||||||||
From net realized gains | (1.69 | ) | – | – | – | (0.46 | ) | – | – | |||||||||||||||||||
Total distributions | (1.69 | ) | (0.07 | ) | (0.02 | ) | (0.31 | ) | (0.96 | ) | – | (0.17 | ) | |||||||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | – | 0.00 | (d) | – | 0.00 | (d) | 0.00 | (d) | 0.00 | (d) | 0.01 | |||||||||||||||||
Net increase/(decrease) in net asset value | 1.47 | (5.86 | ) | 6.15 | (0.67 | ) | (1.76 | ) | 2.78 | (0.73 | ) | |||||||||||||||||
Net asset value, end of period | $ | 22.83 | $ | 21.36 | $ | 27.22 | $ | 21.07 | $ | 21.74 | $ | 23.50 | $ | 20.72 | ||||||||||||||
TOTAL RETURN(e) | 16.12 | % | (21.32 | )% | 29.32 | % | (1.61 | )% | (3.49 | )% | 13.42 | % | (2.69 | )% | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 12,427 | $ | 11,879 | $ | 17,523 | $ | 18,358 | $ | 25,276 | $ | 30,526 | $ | 31,164 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 2.20 | %(f) | 2.10 | % | 2.05 | % | 2.04 | % | 1.98 | % | 2.06 | %(f) | 2.06 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.95 | %(f) | 1.95 | % | 1.95 | % | 1.95 | % | 1.95 | % | 1.95 | %(f) | 1.95 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | (1.51 | )%(f) | (0.30 | )% | 0.34 | % | 0.18 | % | 0.50 | % | 3.96 | %(f) | 0.55 | % | ||||||||||||||
Portfolio turnover rate(g) | 182 | % | 131 | % | 71 | % | 126 | % | 193 | % | 76 | % | 232 | % |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(c) | Calculated using the average shares method. |
(d) | Less than $0.005 or ($0.005) per share. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(f) | Annualized. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
103| April 30, 2019
Clough China Fund – Class A |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period June 12, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period | $ | 21.36 | $ | 29.95 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income/(loss)(a) | (0.14 | ) | 0.14 | |||||
Net realized and unrealized gain/(loss) | 3.30 | (8.73 | ) | |||||
Total from investment operations | 3.16 | (8.59 | ) | |||||
DISTRIBUTIONS: | ||||||||
From net realized gains | (1.69 | ) | – | |||||
Total distributions | (1.69 | ) | – | |||||
Net increase/(decrease) in net asset value | 1.47 | (8.59 | ) | |||||
Net asset value, end of period | $ | 22.83 | $ | 21.36 | ||||
TOTAL RETURN(b) | 16.12 | % | (28.68 | )% | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 118 | $ | 7 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 2.10 | %(c) | 2.22 | %(c) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.95 | %(c) | 1.95 | %(c) | ||||
Ratio of net investment income/(loss) to average net assets | (1.28 | )%(c) | 1.47 | %(c) | ||||
Portfolio turnover rate(d) | 182 | % | 131 | % |
(a) | Calculated using the average shares method. |
Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the
(b) | redemption of Fund shares. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
104| April 30, 2019
Clough China Fund – Class C |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(a) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 20.14 | $ | 25.80 | $ | 20.10 | $ | 20.72 | $ | 22.53 | $ | 19.94 | $ | 20.71 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income/(loss)(b) | (0.23 | ) | (0.28 | ) | (0.12 | )(c) | (0.10 | ) | (0.04 | ) | 0.33 | (0.02 | ) | |||||||||||||||
Net realized and unrealized gain/(loss) | 3.12 | (5.38 | ) | 5.82 | (0.39 | ) | (0.89 | ) | 2.26 | (0.68 | ) | |||||||||||||||||
Total from investment operations | 2.89 | (5.66 | ) | 5.70 | (0.49 | ) | (0.93 | ) | 2.59 | (0.70 | ) | |||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | – | – | – | (0.13 | ) | (0.42 | ) | – | (0.07 | ) | ||||||||||||||||||
From net realized gains | (1.69 | ) | – | – | – | (0.46 | ) | – | – | |||||||||||||||||||
Total distributions | (1.69 | ) | – | – | (0.13 | ) | (0.88 | ) | – | (0.07 | ) | |||||||||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | – | – | 0.00 | (d) | 0.00 | (d) | 0.00 | (d) | 0.00 | (d) | 0.00 | (d) | ||||||||||||||||
Net increase/(decrease) in net asset value | 1.20 | (5.66 | ) | 5.70 | (0.62 | ) | (1.81 | ) | 2.59 | (0.77 | ) | |||||||||||||||||
Net asset value, end of period | $ | 21.34 | $ | 20.14 | $ | 25.80 | $ | 20.10 | $ | 20.72 | $ | 22.53 | $ | 19.94 | ||||||||||||||
TOTAL RETURN(e) | 15.72 | % | (21.94 | )% | 28.36 | % | (2.34 | )% | (4.25 | )% | 12.99 | % | (3.43 | )% | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 3,808 | $ | 4,245 | $ | 6,610 | $ | 8,352 | $ | 10,395 | $ | 11,575 | $ | 10,866 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 2.97 | %(f) | 2.85 | % | 2.85 | % | 2.83 | % | 2.78 | % | 2.87 | %(f) | 2.86 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 2.70 | %(f) | 2.70 | % | 2.70 | % | 2.70 | % | 2.70 | % | 2.70 | %(f) | 2.70 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | (2.27 | )%(f) | (1.07 | )% | (0.54 | )% | (0.52 | )% | (0.18 | )% | 3.08 | %(f) | (0.09 | )% | ||||||||||||||
Portfolio turnover rate(g) | 182 | % | 131 | % | 71 | % | 126 | % | 193 | % | 76 | % | 232 | % |
(a) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(b) | Calculated using the average shares method. |
(c) | The per share amount does not correspond to activity reflected in the Statement of Operations due to class specific expenses during the period. |
(d) | Less than $0.005 or ($0.005) per share. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(f) | Annualized. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
105| April 30, 2019
Clough China Fund – Class I |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(a) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 21.90 | $ | 27.92 | $ | 21.60 | $ | 22.28 | $ | 23.97 | $ | 21.11 | $ | 21.82 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income/(loss)(b) | (0.14 | ) | (0.05 | ) | 0.15 | 0.09 | 0.23 | 0.45 | 0.19 | |||||||||||||||||||
Net realized and unrealized gain/(loss) | 3.43 | (5.83 | ) | 6.23 | (0.39 | ) | (1.00 | ) | 2.41 | (0.69 | ) | |||||||||||||||||
Total from investment operations | 3.29 | (5.88 | ) | 6.38 | (0.30 | ) | (0.77 | ) | 2.86 | (0.50 | ) | |||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | – | (0.14 | ) | (0.06 | ) | (0.38 | ) | (0.53 | ) | – | (0.21 | ) | ||||||||||||||||
From net realized gains | (1.69 | ) | – | – | – | (0.46 | ) | – | – | |||||||||||||||||||
Total distributions | (1.69 | ) | (0.14 | ) | (0.06 | ) | (0.38 | ) | (0.99 | ) | – | (0.21 | ) | |||||||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | – | – | 0.00 | (c) | 0.00 | (c) | 0.07 | 0.00 | (c) | 0.00 | (c) | |||||||||||||||||
Net increase/(decrease) in net asset value | 1.60 | (6.02 | ) | 6.32 | (0.68 | ) | (1.69 | ) | 2.86 | (0.71 | ) | |||||||||||||||||
Net asset value, end of period | $ | 23.50 | $ | 21.90 | $ | 27.92 | $ | 21.60 | $ | 22.28 | $ | 23.97 | $ | 21.11 | ||||||||||||||
TOTAL RETURN(d) | 16.32 | % | (21.17 | )% | 29.64 | % | (1.31 | )% | (2.99 | )% | 13.55 | % | (2.41 | )% | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 24,434 | $ | 21,655 | $ | 35,191 | $ | 33,605 | $ | 37,772 | $ | 39,917 | $ | 33,435 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.96 | %(e) | 1.86 | % | 1.83 | % | 1.82 | % | 1.77 | % | 1.82 | %(e) | 1.81 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.70 | %(e) | 1.70 | % | 1.70 | % | 1.70 | % | 1.70 | % | 1.70 | %(e) | 1.70 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | (1.26 | )%(e) | (0.17 | )% | 0.61 | % | 0.46 | % | 0.95 | % | 3.89 | %(e) | 0.83 | % | ||||||||||||||
Portfolio turnover rate(f) | 182 | % | 131 | % | 71 | % | 126 | % | 193 | % | 76 | % | 232 | % |
(a) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(b) | Calculated using the average shares method. |
(c) | Less than $0.005 or ($0.005) per share. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(e) | Annualized. |
(f) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
106| April 30, 2019
RiverFront Global Allocation Series | |
Management Commentary | April 30, 2019 (Unaudited) |
The six months that encompass November 1, 2018 to April 30, 2019, have two very distinct trading regimes. We saw global equity markets down between 7 and 8% the last two months of 2018, with international markets finally outperforming the US after underperforming in each of the previous three quarters. Investors sold global equities due to concerns of slowing global growth, flattening yield curves, geopolitics in Europe, and US/ China trade tensions, which left them searching for safe havens. During the same period, the bond market as measured by the Bloomberg Barclays Aggregate was up 2.51% as yields fell from 3.13% to 2.68% at year end.
As the calendar changed to 2019, global equities rebounded from the woes experienced in November and December 2018. US equities once again reclaimed leadership returning just over 18% in four months, while international equities returned just over 16%. The first quarter of 2019 was the best quarter posted by global equities since 2012, effectively undoing the market malaise of the 4th quarter 2018 and the momentum continued until April 30th when S&P made a new all-time high. Fixed income returns also had a solid start to the year as the Bloomberg Barclays Aggregate returned 2.73%, namely due to investors discounting the fear that the Fed would overtighten its interest rate policy. Once the Fed announced it would pause its interest rate hiking campaign, worries of an imminent recession transitioned to the promise that economies were only experiencing a temporary slowdown. Additionally, concerns over escalating trade tensions permeated into the belief that a favorable resolution was imminent.
During November and December, the RiverFront Asset Allocation Mutual Fund Series were roughly neutral to their composite benchmark weights from both an equity/bond and US/ International perspective. To reduce risk in the funds during the late year sell-off we reduced exposure to lower credit quality high yield securities. However, as we entered the new year the funds were tilted to have slightly more equities relative to fixed income and more US relative to international exposure. Within our international exposure, the allocation to emerging markets was greater than the benchmark weighting in each of longer time horizon mutual funds. While the asset allocations in the RiverFront Asset Allocation Mutual Fund Series mostly contributed positively to the funds return over the 6-month period, security selection within the actively managed exchange traded funds (ETFs) were a significant detractor to performance.
Outlook:
As we move into the second half of the year, we believe that trade will play an important factor to the direction of the market. We believe that the US and China will reach an agreement, thus relieving further concerns of slowing growth. We continue to favor US equities relative to international markets but continue to believe that emerging markets will be the biggest beneficiary of a trade agreement. Thus, in the longer horizon funds which have a timeframe of 7 to 10 plus years, we favor emerging markets.
Performance Discussion for the Growth & Income, Growth, and Aggressive Funds:
The RiverFront Asset Allocation Growth & Income, Growth, and Aggressive Funds are managed using the same overarching process which is based on our Price Matters® framework. This framework allows the investment managers to develop investment themes that span across the various asset classes in which the funds are invested. As a result, these funds hold substantially the same securities, but the asset class allocations differ depending on the investment time horizon for each. This results in the performance drivers being the same. In the case of the RiverFront Asset Allocation Growth & Income, the allocation is 70% equities and 30% fixed income. The RiverFront Asset Allocation Growth fund is managed to a targeted allocation of 80% equities and 20% fixed income. The RiverFront Asset Allocation Aggressive fund is 100% equity. The RiverFront investment managers have the flexibility to make allocations that differ from the benchmark.
RiverFront Asset Allocation Growth & Income
Contributors:
• | Underweight to fixed income had a positive allocation impact on performance. |
• | While overall US selection impacted fund performance negatively, overweights to technology and consumer discretionary were additive to performance. |
Detractors:
• | Overall, US equity selection was a detractor to performance. |
• | Overweight to cash impacted performance negatively. |
• | Selection within developed international was a drag on performance. |
RiverFront Asset Allocation Growth:
Contributors:
• | Underweight to fixed income has a positive allocation impact on performance. |
• | While domestic security selection in total had a negative impact on fund performance, the fund benefitted from an overweight to technology and consumer discretionary as well as from security selection within those sectors. |
Detractors:
• | Overall, US equity selection was a detractor to performance. |
• | Overweight to cash impacted performance negatively. |
• | Selection within developed international was a drag on performance. |
107| April 30, 2019
RiverFront Global Allocation Series | |
Management Commentary | April 30, 2019 (Unaudited) |
RiverFront Asset Allocation Aggressive:
Contributors:
• | While domestic security selection in total had a negative impact on fund performance, the fund benefitted from an overweight to technology and consumer discretionary as well as from security selection within technology. |
Detractors:
• | Overall, US equity selection was a detractor to performance. |
• | Overweight to cash impacted performance negatively. |
• | Selection within developed international was a drag on performance. |
Performance Discussion for the Income & Growth and Moderate Funds:
The RiverFront Asset Allocation Income & Growth and the RiverFront Asset Allocation Moderate Funds are managed using the same overarching process which is based on our Price Matters® framework. This framework allows the investment managers to develop investment themes that span across the various asset classes in which the Funds are invested. As a result, these Funds hold substantially the same securities, but the asset class allocations differ depending on the investment time horizon for each. This results in the performance drivers being the same. In the case of the RiverFront Asset Allocation Income & Growth Fund, the allocation is 30% equities and 70% fixed income. The RiverFront Asset Allocation Moderate Fund is managed to a targeted allocation of 50% equities and 50% fixed income. The RiverFront investment managers have the flexibility to make allocations that differ from the benchmark.
RiverFront Asset Allocation Income & Growth
Contributors:
• | While selection in general was negative, there was positive selection impact within technology. |
• | Underweight to fixed income contributed positively to performance. |
Detractors:
• | Overall, US equity selection was a detractor to performance. |
• | Overweight to cash impacted performance negatively. |
• | Selection within developed international was a drag on performance. |
RiverFront Asset Allocation Moderate:
Contributors:
• | Underweight to fixed income has a positive allocation impact on performance. |
• | While overall US security selection was a detractor, the fund did benefit from positive selection effects from sectors such as technology and healthcare. |
Detractors:
• | Overall, US equity selection was a detractor to performance. |
• | Overweight to cash impacted performance negatively. |
• | Selection within developed international was a drag on performance. |
Rebecca Felton
Portfolio Manager
Kevin Nicholson, CFA
Portfolio Manager
Deva Meenakshisundaram, FRM
Portfolio Manager
Bill Ryder, CFA, CMT
Portfolio Manager
Personnel Changes:
Effective March 31, 2019, Michael Jones retired as Chairman of the Board of RiverFront Investment Holding Group, LLC and President and CEO of the RiverShares division of RiverFront Investment Group. Michael was replaced on the mutual fund portfolio management team by Rebecca Felton who serves as RiverFront’s Chief Risk Officer and Senior Portfolio Manager.
108| April 30, 2019
RiverFront Global Allocation Series | |
Management Commentary | April 30, 2019 (Unaudited) |
Past performance is no guarantee of future results. Dividends are not guaranteed and are subject to change or elimination. Investments in international and emerging markets securities include exposure to risks such as currency fluctuations, foreign taxes and regulations, and the potential for illiquid markets and political instability.
The views of the author and information discussed in this commentary are as of the date of publication, are subject to change, and may not reflect the writer's current views. The views expressed are those of the author only, and represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the fund(s) or any securities or any sectors mentioned in this letter. The subject matter contained in this letter has been derived from several sources believed to be reliable and accurate at the time of compilation. Neither ALPS Advisors, Inc., RiverFront Investment Group, LLC, nor the Funds accepts any liability for losses either direct or consequential caused by the use of this information.
The S&P 1000®Index combines the S&P MidCap 400®and the S&P SmallCap 600®to form an investable benchmark for the mid- to small-cap segment of the U.S. equity market.
The MSCI EAFE Index is recognized as the pre-eminent benchmark in the United States to measure international equity performance. It comprises the MSCI country indices that represent developed markets outside of North America: Europe, Australasia and the Far East.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.
The BofAML US HY Master II Total Return Index tracks the performance of US dollar denominated below investment grade corporate debt publicly issued in the US domestic market.
The Barclays U.S. Treasury Index includes public obligations of the U.S. Treasury, excluding Treasury bills and certain special issues, such as state and local government series bonds (SLGs) and U.S. Treasury TIPS.
The Barclays U.S. Short Treasury Index is composed of bonds of investment grade with a maturity between one and three years.
Indices do not reflect deductions for fees, expenses, or taxes.
An investor may not invest directly in an index.
Diversification cannot guarantee gain or prevent losses.
109| April 30, 2019
RiverFront Asset Allocation Aggressive | |
Performance Update | April 30, 2019 (Unaudited) |
Performance of $10,000 Initial Investment(as of April 30, 2019)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception.Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns(as of April 30, 2019)
6 Month | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception^ | Total Expense Ratio | What You Pay* | |
Investor# (NAV) | 5.41% | -3.94% | 7.47% | 4.10% | 8.40% | 8.44% | 1.05% | 1.05% |
Class A (NAV) | 5.38% | -3.95% | 7.46% | 4.09% | 8.40% | 8.43% | 1.05% | 1.05% |
Class A (MOP) | -0.39% | -9.26% | 5.45% | 2.93% | 7.79% | 7.85% | ||
Class C (NAV) | 4.99% | -4.67% | 6.65% | 3.33% | 7.61% | 7.65% | 1.80% | 1.80% |
Class C (CDSC) | 4.21% | -5.38% | 6.65% | 3.33% | 7.61% | 7.65% | ||
Class I (NAV) | 5.56% | -3.70% | 7.74% | 4.35% | 8.67% | 8.71% | 0.80% | 0.80% |
Investor II (NAV) | 5.39% | -4.01% | 7.44% | 4.08% | 8.39% | 8.42% | 1.05% | 1.05% |
Class L1 (NAV) | 5.48% | -3.72% | 7.70% | 4.35% | 8.67% | 8.71% | 0.80% | 0.80% |
S&P 500® Total Return Index3 | 9.76% | 13.49% | 14.87% | 11.63% | 15.32% | 13.89% | ||
MSCI All Country World Index2 | 9.37% | 5.06% | 11.36% | 6.96% | 11.11% | 11.02% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million.
Performance less than 1 year is cumulative.
110| April 30, 2019
RiverFront Asset Allocation Aggressive | |
Performance Update | April 30, 2019 (Unaudited) |
Performance shown for Class A shares prior to June 12, 2018 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class A shares.
The Investor Class, Class A, Class C, I and L shares performance shown for periods prior to September 27, 2010 reflects the performance of the Baird Funds, Inc. – RiverFront Long-Term Growth Fund’s Institutional Class shares (as result of the reorganization of the Baird Funds, Inc. – RiverFront Long-Term Growth Fund into the Fund).
The Investor II Class performance shown for periods prior to September 27, 2010 reflects the performance of the Baird Funds, Inc. – RiverFront Long-Term Growth Fund’s Investor Class shares (as result of the reorganization of the Baird Funds, Inc. – RiverFront Long-Term Growth Fund into the Fund).
1 | Prior to close of business on September 24, 2010, Class L was known as Institutional Class of the Baird Funds, Inc. - RiverFront Long-Term Growth Fund. |
2 | The MSCI ACWI (All Country World Index) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 45 country indices comprising 24 developed and 21 emerging market country indices. The index includes reinvestment of dividends, net of foreign withholding taxes. The index is not actively managed and does not reflect any deductions for fees, expenses or taxes. An investor may not invest directly in an index. |
3 | S&P 500®Total Return Index is the Standard & Poor's composite index of 500 stocks, a widely recognized, unmanaged index of common stock prices. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
^ | Fund Inception date of October 28, 2008 for Investor Class II and Class L; Fund Inception date September 27, 2010 for Investor Class and Classes C and I; Fund Inception date June 12, 2018 for Class A. |
* | What You Pay reflects Acquired Fund Fees and Expenses of 0.55%. Please see the prospectus for additional information. |
# | Prior to December 1, 2017, Investor Class was known as Class A. |
Prior to February 28, 2018, the RiverFront Asset Allocation Aggressive was known as the RiverFront Global Growth Fund.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Top Ten Holdings(as a% of Net Assets) † | |
RiverFront Dynamic US Flex-Cap ETF | 37.28% |
First Trust RiverFront Dynamic Developed International ETF | 24.75% |
First Trust RiverFront Dynamic Emerging Markets ETF | 14.67% |
RiverFront Dynamic US Dividend Advantage ETF | 10.88% |
First Trust RiverFront Dynamic Europe ETF | 6.19% |
First Trust RiverFront Dynamic Asia Pacific ETF | 5.11% |
Top Ten Holdings | 98.88% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents indicative values only. Excludes cash & cash equivalents. |
Portfolio Composition(as a % of Net Assets)
111| April 30, 2019
RiverFront Asset Allocation Growth | |
Performance Update | April 30, 2019 (Unaudited) |
Performance of $10,000 Initial Investment(as of April 30, 2019)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception.Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns(as of April 30, 2019)
6 Month | 1 Year | 3 Years | 5 Years | Since Inception^ | Total Expense Ratio | What You Pay* | |
Investor# (NAV) | 5.36% | -1.92% | 7.33% | 4.13% | 6.14% | 1.03% | 1.03% |
Class A (NAV) | 5.44% | -1.85% | 7.35% | 4.14% | 6.15% | 1.03% | 1.03% |
Class A (MOP) | -0.37% | -7.28% | 5.33% | 2.98% | 5.47% | ||
Class C (NAV) | 4.95% | -2.64% | 6.53% | 3.35% | 5.35% | 1.78% | 1.78% |
Class C (CDSC) | 4.12% | -3.41% | 6.53% | 3.35% | 5.35% | ||
Class I (NAV) | 5.47% | -1.69% | 7.59% | 4.37% | 6.39% | 0.78% | 0.78% |
MSCI All Country World Index1 | 9.37% | 5.06% | 11.36% | 6.96% | 8.97% | ||
80% ACWI and 20% Bloomberg Barclays U.S. Aggregate Bond1,2 | 8.71% | 5.28% | 9.50% | 6.18% | 7.89% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million.
Performance less than 1 year is cumulative.
112| April 30, 2019
RiverFront Asset Allocation Growth | |
Performance Update | April 30, 2019 (Unaudited) |
Performance shown for Class A shares prior to June 12, 2018 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class A shares.
1 | The MSCI ACWI (All Country World Index) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 45 country indices comprising 24 developed and 21 emerging market country indices. The index includes reinvestment of dividends, net of foreign withholding taxes. The index is not actively managed and does not reflect any deductions for fees, expenses or taxes. An investor may not invest directly in an index. |
2 | The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. The index is not actively managed and does not reflect any deductions for fees, expenses or taxes. An investor may not invest directly in an index. |
^ | Fund Inception date of August 2, 2010 for Investor Class and Classes C and I; Fund Inception date of June 12, 2018 for Class A. |
* | What You Pay reflects Acquired Fund Fees and Expenses of 0.53%. Please see the prospectus for additional information. |
# | Prior to December 1, 2017, Investor Class was known as Class A. |
Prior to February 28, 2018, the RiverFront Asset Allocation Growth was known as the RiverFront Global Allocation Fund.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Top Ten Holdings(as a% of Net Assets)† | |
RiverFront Dynamic US Flex-Cap ETF | 34.33% |
First Trust RiverFront Dynamic Developed International ETF | 17.95% |
First Trust RiverFront Dynamic Emerging Markets ETF | 12.40% |
RiverFront Dynamic US Dividend Advantage ETF | 10.40% |
RiverFront Dynamic Core Income ETF | 7.34% |
First Trust RiverFront Dynamic Europe ETF | 5.27% |
Riverfront Strategic Income Fund | 4.19% |
First Trust RiverFront Dynamic Asia Pacific ETF | 3.05% |
RiverFront Dynamic Unconstrained Income ETF | 1.91% |
Top Ten Holdings | 96.84% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents indicative values only. Excludes cash & cash equivalents. |
Portfolio Composition(as a % of Net Assets)
113| April 30, 2019
RiverFront Asset Allocation Growth & Income | |
Performance Update | April 30, 2019 (Unaudited) |
Performance of $10,000 Initial Investment(as of April 30, 2019)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception.Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns(as of April 30, 2019)
6 Month | 1 Year | 3 Years | 5 Years | Since Inception^ | Total Expense Ratio | What You Pay* | |
Investor# (NAV) | 5.56% | -0.40% | 7.26% | 4.75% | 6.87% | 1.01% | 1.01% |
Class A (NAV) | 5.60% | -0.41% | 7.25% | 4.75% | 6.87% | 1.01% | 1.01% |
Class A (MOP) | -0.22% | -5.87% | 5.24% | 3.58% | 6.19% | ||
Class C (NAV) | 5.19% | -1.19% | 6.48% | 3.97% | 6.07% | 1.76% | 1.76% |
Class C (CDSC) | 4.30% | -2.02% | 6.48% | 3.97% | 6.07% | ||
Class I (NAV) | 5.79% | -0.14% | 7.53% | 5.03% | 7.14% | 0.76% | 0.76% |
MSCI All Country World Index1 | 9.37% | 5.06% | 11.36% | 6.96% | 8.97% | ||
70% ACWI and 30% Bloomberg Barclays U.S. Aggregate Bond1,2 | 8.36% | 5.36% | 8.56% | 5.77% | 7.32% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million.
Performance less than 1 year is cumulative.
114| April 30, 2019
RiverFront Asset Allocation Growth & Income | |
Performance Update | April 30, 2019 (Unaudited) |
Performance shown for Class A shares prior to June 12, 2018 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class A shares.
1 | The MSCI ACWI (All Country World Index) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 45 country indices comprising 24 developed and 21 emerging market country indices. The index includes reinvestment of dividends, net of foreign withholding taxes. The index is not actively managed and does not reflect any deductions for fees, expenses or taxes. An investor may not invest directly in an index. |
2 | The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. The index is not actively managed and does not reflect any deductions for fees, expenses or taxes. An investor may not invest directly in an index. |
^ | Fund Inception date of August 2, 2010 for Investor Class and Classes C and I; Fund Inception date of June 12, 2018 for Class A. |
* | What You Pay reflects Acquired Fund Fees and Expenses of 0.51%. Please see the prospectus for additional information. |
# | Prior to December 1, 2017, Investor Class was known as Class A. |
Prior to February 28, 2018, the RiverFront Asset Allocation Growth & Income was known as the RiverFront Dynamic Equity Income Fund.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Top Ten Holdings(as a % of Net Assets)† | |
RiverFront Dynamic US Dividend Advantage ETF | 20.33% |
RiverFront Dynamic US Flex-Cap ETF | 19.21% |
RiverFront Dynamic Core Income ETF | 18.45% |
First Trust RiverFront Dynamic Developed International ETF | 14.86% |
First Trust RiverFront Dynamic Emerging Markets ETF | 12.10% |
First Trust RiverFront Dynamic Europe ETF | 4.33% |
Riverfront Strategic Income Fund | 4.26% |
First Trust RiverFront Dynamic Asia Pacific ETF | 2.61% |
RiverFront Dynamic Unconstrained Income ETF | 1.94% |
Top Ten Holdings | 98.09% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents indicative values only. Excludes cash & cash equivalents. |
Portfolio Composition(as a % of Net Assets)
115| April 30, 2019
RiverFront Asset Allocation Moderate | |
Performance Update | April 30, 2019 (Unaudited) |
Performance of $10,000 Initial Investment(as of April 30, 2019)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception.Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns(as of April 30, 2019)
6 Month | 1 Year | 3 Years | 5 Years | Since Inception^ | Total Expense Ratio | What You Pay* | |
Investor# (NAV) | 5.41% | 2.83% | 6.21% | 4.31% | 5.85% | 0.93% | 0.93% |
Class A (NAV) | 5.56% | 2.89% | 6.23% | 4.32% | 5.86% | 0.93% | 0.93% |
Class A (MOP) | -0.24% | -2.80% | 4.24% | 3.14% | 5.18% | ||
Class C (NAV) | 5.13% | 2.05% | 5.44% | 3.54% | 5.07% | 1.68% | 1.68% |
Class C (CDSC) | 4.24% | 1.19% | 5.44% | 3.54% | 5.07% | ||
Class I (NAV) | 5.63% | 3.10% | 6.49% | 4.57% | 6.11% | 0.68% | 0.68% |
S&P 500® Total Return Index1 | 9.76% | 13.49% | 14.87% | 11.63% | 13.99% | ||
50% S&P 500® and 50% Bloomberg Barclays U.S. Aggregate Bond2 | 7.87% | 9.68% | 8.39% | 7.20% | 8.55% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $ 1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million.
Performance less than 1 year is cumulative.
116| April 30, 2019
RiverFront Asset Allocation Moderate | |
Performance Update | April 30, 2019 (Unaudited) |
Performance shown for Class A shares prior to June 12, 2018 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class A shares.
1 | S&P 500®Total Return Index is the Standard & Poor's composite index of 500 stocks, a widely recognized, unmanaged index of common stock prices. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
2 | The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. The index is not actively managed and does not reflect any deductions for fees, expenses or taxes. An investor may not invest directly in an index. |
^ | Fund Inception date of August 2, 2010 for Investor Class and Classes C and I; Fund Inception date of June 12, 2018 for Class A. |
* | What You Pay reflects Acquired Fund Fees and Expenses of 0.43%. Please see the prospectus for additional information. |
# | Prior to December 1, 2017, Investor Class was known as Class A. |
Prior to February 28, 2018, the RiverFront Asset Allocation Moderate was known as the RiverFront Moderate Growth & Income Fund. The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. This Fund is not suitable for all investors and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Top Ten Holdings(as a % of Net Assets)† | |
RiverFront Dynamic Core Income ETF | 39.12% |
RiverFront Dynamic US Dividend Advantage ETF | 27.67% |
RiverFront Dynamic US Flex-Cap ETF | 16.09% |
First Trust RiverFront Dynamic Developed International ETF | 8.04% |
Riverfront Strategic Income Fund | 4.11% |
RiverFront Dynamic Unconstrained Income ETF | 1.96% |
First Trust RiverFront Dynamic Asia Pacific ETF | 0.85% |
First Trust RiverFront Dynamic Europe ETF | 0.78% |
Top Ten Holdings | 98.62% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents indicative values only. Excludes cash & cash equivalents. |
Portfolio Composition(as a % of Net Assets)
117| April 30, 2019
RiverFront Asset Allocation Income & Growth | |
Performance Update | April 30, 2019 (Unaudited) |
Performance of $10,000 Initial Investment(as of April 30, 2019)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception.Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns(as of April 30, 2019)
6 Month | 1 Year | 3 Years | 5 Years | Since Inception^ | Total Expense Ratio | What You Pay* | |
Investor# (NAV) | 5.41% | 3.63% | 4.47% | 3.10% | 4.13% | 0.90% | 0.90% |
Class A (NAV) | 5.45% | 3.68% | 4.49% | 3.11% | 4.14% | 0.90% | 0.90% |
Class A (MOP) | -0.34% | -2.04% | 2.53% | 1.95% | 3.26% | ||
Class C (NAV) | 4.95% | 2.87% | 3.67% | 2.32% | 3.35% | 1.65% | 1.65% |
Class C (CDSC) | 3.98% | 1.93% | 3.67% | 2.32% | 3.35% | ||
Class I (NAV) | 5.52% | 3.95% | 4.76% | 3.36% | 4.39% | 0.65% | 0.65% |
Bloomberg Barclays U.S.Aggregate Bond Index1 | 5.49% | 5.29% | 1.90% | 2.57% | 2.07% | ||
30% S&P 500® and 70% Bloomberg Barclays U.S. Aggregate Bond1,2 | 6.97% | 7.98% | 5.79% | 5.37% | 5.69% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $ 1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million.
Performance less than 1 year is cumulative.
118| April 30, 2019
RiverFront Asset Allocation Income & Growth | |
Performance Update | April 30, 2019 (Unaudited) |
Performance shown for Class A shares prior to June 12, 2018 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class A shares.
1 | The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. The index is not actively managed and does not reflect any deductions for fees, expenses or taxes. An investor may not invest directly in an index. |
2 | The S&P 500® Index is the Standard & Poor's composite index of 500 stocks, a widely recognized, unmanaged index of common stock prices. |
^ | Fund Inception date of August 31, 2012 for Investor Class and Classes C and I; Fund Inception date of June 12, 2018 for Class A. |
* | What You Pay reflects Acquired Fund Fees and Expenses of 0.40%. Please see the prospectus for additional information. |
# | Prior to December 1, 2017, Investor Class was known as Class A. |
Prior to February 28, 2018, the RiverFront Asset Allocation Income & Growth was known as the RiverFront Conservative Income Builder Fund.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Top Ten Holdings(as a % of Net Assets)† | |
RiverFront Dynamic Core Income ETF | 59.10% |
RiverFront Dynamic US Dividend Advantage ETF | 21.16% |
RiverFront Dynamic US Flex-Cap ETF | 8.93% |
Riverfront Strategic Income Fund | 4.18% |
First Trust RiverFront Dynamic Developed International ETF | 2.56% |
RiverFront Dynamic Unconstrained Income ETF | 1.96% |
First Trust RiverFront Dynamic Europe ETF | 0.38% |
Top Ten Holdings | 98.27% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents indicative values only. Excludes cash & cash equivalents. |
Portfolio Composition(as a % of Net Assets)
119| April 30, 2019
RiverFront Asset Allocation Aggressive | |
Statement of Investments | April 30, 2019 (Unaudited) |
Shares | Value (Note 2) | |||||||
EXCHANGE TRADED FUNDS (98.88%) | ||||||||
Equity (98.88%) | ||||||||
First Trust RiverFront Dynamic Asia Pacific ETF(a) | 40,783 | $ | 2,108,073 | |||||
First Trust RiverFront Dynamic Developed International ETF(a) | 175,881 | 10,215,169 | ||||||
First Trust RiverFront Dynamic Emerging Markets ETF(a) | 96,144 | 6,054,188 | ||||||
First Trust RiverFront Dynamic Europe ETF(a) | 42,268 | 2,552,987 | ||||||
RiverFront Dynamic US Dividend Advantage ETF(a) | 136,339 | 4,490,775 | ||||||
RiverFront Dynamic US Flex-Cap ETF(a) | 450,992 | 15,393,033 | ||||||
40,814,225 | ||||||||
TOTAL EXCHANGE TRADED FUNDS | ||||||||
(Cost $40,922,416) | 40,814,225 |
7-Day Yield | Shares | Value (Note 2) | ||||||||||
SHORT-TERM INVESTMENTS (1.39%) | ||||||||||||
Money Market Fund (1.39%) | ||||||||||||
State Street Institutional Treasury Plus Money Market Fund | 2.346 | % | 571,905 | 571,905 | ||||||||
TOTAL MONEY MARKET FUND | 571,905 | |||||||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||||||
(Cost $571,905) | 571,905 | |||||||||||
TOTAL INVESTMENTS (100.27%) | ||||||||||||
(Cost $41,494,321) | $ | 41,386,130 | ||||||||||
Liabilities In Excess Of Other Assets (-0.27%) | (111,833 | ) | ||||||||||
NET ASSETS (100.00%) | $ | 41,274,297 |
(a) | Affiliated Company. See Note 7 in Notes to Financial Statements. |
For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets.
See Notes to Financial Statements.
120| April 30, 2019
RiverFront Asset Allocation Growth | |
Statement of Investments | April 30, 2019 (Unaudited) |
Shares | Value (Note 2) | |||||||
EXCHANGE TRADED FUNDS (96.84%) | ||||||||
Debt (13.45%) | ||||||||
RiverFront Dynamic Core Income ETF(a) | 75,570 | $ | 1,843,530 | |||||
RiverFront Dynamic Unconstrained Income ETF(a) | 19,018 | 480,300 | ||||||
Riverfront Strategic Income Fund(a) | 42,679 | 1,052,891 | ||||||
3,376,721 | ||||||||
Equity (83.39%) | ||||||||
First Trust RiverFront Dynamic Asia Pacific ETF(a) | 14,812 | 765,632 | ||||||
First Trust RiverFront Dynamic | ||||||||
Developed International ETF(a) | 77,601 | 4,507,066 | ||||||
First Trust RiverFront Dynamic | ||||||||
Emerging Markets ETF(a) | 49,425 | 3,112,292 | ||||||
First Trust RiverFront Dynamic Europe ETF(a) | 21,889 | 1,322,096 | ||||||
RiverFront Dynamic US Dividend Advantage ETF(a) | 79,254 | 2,610,492 | ||||||
RiverFront Dynamic US Flex-Cap ETF(a) | 252,578 | 8,620,866 | ||||||
20,938,444 | ||||||||
TOTAL EXCHANGE TRADED FUNDS | ||||||||
(Cost $24,243,485) | 24,315,165 |
7-Day Yield | Shares | Value (Note 2) | ||||||||||
SHORT-TERM INVESTMENTS (1.64%) | ||||||||||||
Money Market Fund (1.64%) | ||||||||||||
State Street Institutional Treasury Plus Money Market Fund | 2.346 | % | 411,975 | 411,975 | ||||||||
TOTAL MONEY MARKET FUND | 411,975 | |||||||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||||||
(Cost $411,975) | 411,975 | |||||||||||
TOTAL INVESTMENTS (98.48%) | ||||||||||||
(Cost $24,655,460) | $ | 24,727,140 | ||||||||||
Other Assets In Excess Of Liabilities (1.52%) | 381,204 | |||||||||||
NET ASSETS (100.00%) | $ | 25,108,344 |
(a) | Affiliated Company. See Note 7 in Notes to Financial Statements. |
For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets.
See Notes to Financial Statements.
121| April 30, 2019
RiverFront Asset Allocation Growth & Income | |
Statement of Investments | April 30, 2019 (Unaudited) |
Shares | Value (Note 2) | |||||||
EXCHANGE TRADED FUNDS (98.09%) | ||||||||
Debt (24.65%) | ||||||||
RiverFront Dynamic Core IncomeETF(a) | 550,632 | $ | 13,432,667 | |||||
RiverFront Dynamic Unconstrained Income ETF(a) | 55,881 | 1,411,275 | ||||||
Riverfront Strategic Income Fund(a) | 125,546 | 3,097,220 | ||||||
17,941,162 | ||||||||
Equity (73.44%) | ||||||||
First Trust RiverFront Dynamic Asia Pacific ETF(a) | 36,754 | 1,899,814 | ||||||
First Trust RiverFront Dynamic | ||||||||
Developed International ETF(a) | 186,218 | 10,815,542 | ||||||
First Trust RiverFront Dynamic | ||||||||
Emerging Markets ETF(a) | 139,906 | 8,809,881 | ||||||
First Trust RiverFront Dynamic Europe ETF(a) | 52,219 | 3,154,028 | ||||||
RiverFront Dynamic US Dividend Advantage ETF(a) | 449,265 | 14,798,025 | ||||||
RiverFront Dynamic US Flex-Cap ETF(a) | 409,562 | 13,978,965 | ||||||
53,456,255 | ||||||||
TOTAL EXCHANGE TRADED FUNDS | ||||||||
(Cost $70,576,019) | 71,397,417 |
7-Day Yield | Shares | Value (Note 2) | ||||||||||
SHORT-TERM INVESTMENTS (2.11%) | ||||||||||||
Money Market Fund (2.11%) | ||||||||||||
State Street Institutional Treasury Plus Money Market Fund | 2.346 | % | 1,535,721 | 1,535,721 | ||||||||
TOTAL MONEY MARKET FUND | 1,535,721 | |||||||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||||||
(Cost $1,535,721) | 1,535,721 | |||||||||||
TOTAL INVESTMENTS (100.20%) | ||||||||||||
(Cost $72,111,740) | $ | 72,933,138 | ||||||||||
Liabilities In Excess Of Other Assets (-0.20%) | (147,707 | ) | ||||||||||
NET ASSETS (100.00%) | $ | 72,785,431 |
(a) | Affiliated Company. See Note 7 in Notes to Financial Statements. |
For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets.
See Notes to Financial Statements.
122| April 30, 2019
RiverFront Asset Allocation Moderate | |
Statement of Investments | April 30, 2019 (Unaudited) |
Shares | Value (Note 2) | |||||||
EXCHANGE TRADED FUNDS (98.62%) | ||||||||
Debt (45.19%) | ||||||||
RiverFront Dynamic Core IncomeETF(a) | 1,024,805 | $ | 25,000,118 | |||||
RiverFront Dynamic Unconstrained | ||||||||
Income ETF(a) | 49,531 | 1,250,905 | ||||||
Riverfront Strategic Income Fund(a) | 106,489 | 2,627,084 | ||||||
28,878,107 | ||||||||
Equity (53.43%) | ||||||||
First Trust RiverFront Dynamic Asia Pacific ETF(a) | 10,449 | 540,109 | ||||||
First Trust RiverFront Dynamic | ||||||||
Developed International ETF(a) | 88,470 | 5,138,337 | ||||||
First Trust RiverFront Dynamic Europe ETF(a) | 8,222 | 496,609 | ||||||
RiverFront Dynamic US Dividend Advantage ETF(a) | 536,908 | 17,684,837 | ||||||
RiverFront Dynamic US Flex-Cap ETF(a) | 301,375 | 10,286,381 | ||||||
34,146,273 | ||||||||
TOTAL EXCHANGE TRADED FUNDS | ||||||||
(Cost $61,928,160) | 63,024,380 |
7-Day Yield | Shares | Value (Note 2) | ||||||||||
SHORT-TERM INVESTMENTS (1.36%) | ||||||||||||
Money Market Fund (1.36%) | ||||||||||||
State Street Institutional Treasury Plus Money Market Fund | 2.346 | % | 866,745 | 866,745 | ||||||||
TOTAL MONEY MARKET FUND | 866,745 | |||||||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||||||
(Cost $866,745) | 866,745 | |||||||||||
TOTAL INVESTMENTS (99.98%) | ||||||||||||
(Cost $62,794,905) | $ | 63,891,125 | ||||||||||
Other Assets In Excess Of Liabilities (0.02%) | 15,537 | |||||||||||
NET ASSETS (100.00%) | $ | 63,906,662 |
(a) | Affiliated Company. See Note 7 in Notes to Financial Statements. |
For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets.
See Notes to Financial Statements.
123| April 30, 2019
RiverFront Asset Allocation Income & Growth | |
Statement of Investments | April 30, 2019 (Unaudited) |
Shares | Value (Note 2) | |||||||
EXCHANGE TRADED FUNDS (98.27%) | ||||||||
Debt (65.24%) | ||||||||
RiverFront Dynamic Core Income ETF(a) | 207,078 | $ | 5,051,668 | |||||
RiverFront Dynamic Unconstrained Income ETF(a) | 6,625 | 167,314 | ||||||
Riverfront Strategic Income Fund(a) | 14,494 | 357,567 | ||||||
5,576,549 | ||||||||
Equity (33.03%) | ||||||||
First Trust RiverFront Dynamic | ||||||||
Developed International ETF(a) | 3,764 | 218,613 | ||||||
First Trust RiverFront Dynamic Europe ETF(a) | 534 | 32,254 | ||||||
RiverFront Dynamic US Dividend Advantage ETF(a) | 54,918 | 1,808,906 | ||||||
RiverFront Dynamic US Flex-Cap ETF(a) | 22,353 | 762,941 | ||||||
2,822,714 | ||||||||
TOTAL EXCHANGE TRADED FUNDS | ||||||||
(Cost $8,197,792) | 8,399,263 |
7-Day Yield | Shares | Value (Note 2) | ||||||||||
SHORT-TERM INVESTMENTS (1.82%) | ||||||||||||
Money Market Fund (1.82%) | ||||||||||||
State Street Institutional Treasury Plus Money Market Fund | 2.346 | % | 155,842 | 155,842 | ||||||||
TOTAL MONEY MARKET FUND | 155,842 | |||||||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||||||
(Cost $155,842) | 155,842 | |||||||||||
TOTAL INVESTMENTS (100.09%) | ||||||||||||
(Cost $8,353,634) | $ | 8,555,105 | ||||||||||
Liabilities In Excess Of Other Assets (-0.09%) | (7,520 | ) | ||||||||||
NET ASSETS (100.00%) | $ | 8,547,585 |
(a) | Affiliated Company. See Note 7 in Notes to Financial Statements. |
For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets.
See Notes to Financial Statements.
124| April 30, 2019
RiverFront Global Allocation Series | |
Statements of Assets and Liabilities | April 30, 2019 (Unaudited) |
RiverFront Asset Allocation Aggressive | RiverFront Asset Allocation Growth | RiverFront Asset Allocation Growth & Income | RiverFront Asset Allocation Moderate | RiverFront Asset Allocation Income & Growth | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Investments, at value | $ | 571,905 | $ | 411,975 | $ | 1,535,721 | $ | 866,745 | $ | 155,842 | ||||||||||
Investments in affiliates, at value | 40,814,225 | 24,315,165 | 71,397,417 | 63,024,380 | 8,399,263 | |||||||||||||||
Receivable for shares sold | 320 | 398,442 | 13,002 | 85,593 | – | |||||||||||||||
Dividends and interest receivable | 1,277 | 827 | 2,365 | 1,833 | 449 | |||||||||||||||
Total Assets | 41,387,727 | 25,126,409 | 72,948,505 | 63,978,551 | 8,555,554 | |||||||||||||||
LIABILITIES | ||||||||||||||||||||
Payable for shares redeemed | 89,021 | 299 | 114,778 | 16,906 | – | |||||||||||||||
Unitary administrative fees payable | 17,569 | 10,325 | 30,667 | 26,847 | 3,646 | |||||||||||||||
Distribution and services fees payable | 6,840 | 7,441 | 17,629 | 28,136 | 4,323 | |||||||||||||||
Total Liabilities | 113,430 | 18,065 | 163,074 | 71,889 | 7,969 | |||||||||||||||
NET ASSETS | $ | 41,274,297 | $ | 25,108,344 | $ | 72,785,431 | $ | 63,906,662 | $ | 8,547,585 | ||||||||||
NET ASSETS CONSIST OF | ||||||||||||||||||||
Paid-in capital | $ | 42,432,190 | $ | 25,710,367 | $ | 74,086,715 | $ | 63,967,284 | $ | 8,453,345 | ||||||||||
Total distributable earnings | (1,157,893 | ) | (602,023 | ) | (1,301,284 | ) | (60,622 | ) | 94,240 | |||||||||||
NET ASSETS | $ | 41,274,297 | $ | 25,108,344 | $ | 72,785,431 | $ | 63,906,662 | $ | 8,547,585 | ||||||||||
INVESTMENTS, AT COST | $ | 571,905 | $ | 411,975 | $ | 1,535,721 | $ | 866,745 | $ | 155,842 | ||||||||||
INVESTMENTS IN AFFILIATES, AT COST | $ | 40,922,416 | $ | 24,243,485 | $ | 70,576,019 | $ | 61,928,160 | $ | 8,197,792 |
See Notes to Financial Statements.
125| April 30, 2019
RiverFront Global Allocation Series | |
Statements of Assets and Liabilities (continued) | April 30, 2019 (Unaudited) |
RiverFront Asset Allocation Aggressive | RiverFront Asset Allocation Growth | RiverFront Asset Allocation Growth & Income | RiverFront Asset Allocation Moderate | RiverFront Asset Allocation Income & Growth | ||||||||||||||||
PRICING OF SHARES | ||||||||||||||||||||
Investor Class: | ||||||||||||||||||||
Net Asset Value, offering and redemption price per share | $ | 11.61 | $ | 11.11 | $ | 12.00 | $ | 10.31 | $ | 10.39 | ||||||||||
Net Assets | $ | 4,365,534 | $ | 4,305,350 | $ | 7,342,019 | $ | 5,646,486 | $ | 147,290 | ||||||||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 376,048 | 387,627 | 611,944 | 547,437 | 14,173 | |||||||||||||||
Class A: | ||||||||||||||||||||
Net Asset Value, offering and redemption price per share | $ | 11.52 | $ | 11.12 | $ | 11.99 | $ | 10.31 | $ | 10.38 | ||||||||||
Net Assets | $ | 315,069 | $ | 620,355 | $ | 917,460 | $ | 1,692,016 | $ | 46,629 | ||||||||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 27,343 | 55,797 | 76,530 | 164,189 | 4,494 | |||||||||||||||
Maximum offering price per share ((NAV/0.9450), based on maximum sales charge of 5.50% of the offering price) | $ | 12.19 | $ | 11.77 | $ | 12.69 | $ | 10.91 | $ | 10.98 | ||||||||||
Class C: | ||||||||||||||||||||
Net Asset Value, offering and redemption price per share(a) | $ | 10.97 | $ | 10.57 | $ | 11.64 | $ | 10.16 | $ | 10.23 | ||||||||||
Net Assets | $ | 6,561,914 | $ | 7,725,907 | $ | 19,235,467 | $ | 32,266,685 | $ | 5,176,126 | ||||||||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 598,171 | 730,590 | 1,653,040 | 3,176,434 | 505,851 | |||||||||||||||
Class I: | ||||||||||||||||||||
Net Asset Value, offering and redemption price per share | $ | 11.82 | $ | 10.96 | $ | 11.95 | $ | 10.32 | $ | 10.21 | ||||||||||
Net Assets | $ | 9,471,837 | $ | 12,456,732 | $ | 45,290,485 | $ | 24,301,475 | $ | 3,177,540 | ||||||||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 801,623 | 1,136,183 | 3,791,451 | 2,355,218 | 311,276 | |||||||||||||||
Investor Class II: | ||||||||||||||||||||
Net Asset Value, offering and redemption price per share | $ | 11.51 | N/A | N/A | N/A | N/A | ||||||||||||||
Net Assets | $ | 1,454,532 | N/A | N/A | N/A | N/A | ||||||||||||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 126,367 | N/A | N/A | N/A | N/A | |||||||||||||||
Class L: | ||||||||||||||||||||
Net Asset Value, offering and redemption price per share | $ | 11.79 | N/A | N/A | N/A | N/A | ||||||||||||||
Net Assets | $ | 19,105,411 | N/A | N/A | N/A | N/A | ||||||||||||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 1,619,934 | N/A | N/A | N/A | N/A |
(a) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. For a description of a possible sales charge, please see the Fund's Prospectus. |
See Notes to Financial Statements.
126| April 30, 2019
RiverFront Global Allocation Series | |
Statements of Operations | For the Six Months Ended April 30, 2019 (Unaudited) |
RiverFront Asset Allocation Aggressive | RiverFront Asset Allocation Growth | RiverFront Asset Allocation Growth & Income | RiverFront Asset Allocation Moderate | RiverFront Asset Allocation Income & Growth | ||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||
Dividends | $ | 7,958 | $ | 4,972 | $ | 14,321 | $ | 10,894 | $ | 2,057 | ||||||||||
Dividends from affiliated securities | 304,942 | 240,131 | 799,386 | 852,460 | 123,309 | |||||||||||||||
Total Investment Income | 312,900 | 245,103 | 813,707 | 863,354 | 125,366 | |||||||||||||||
EXPENSES | ||||||||||||||||||||
Administrative fees | 52,361 | 32,020 | 94,061 | 84,144 | 11,253 | |||||||||||||||
Distribution and service fees | ||||||||||||||||||||
Investor Class | 5,539 | 6,319 | 10,297 | 8,627 | 184 | |||||||||||||||
Class A | 119 | 227 | 375 | 598 | 26 | |||||||||||||||
Class C | 37,189 | 42,348 | 103,571 | 176,427 | 26,564 | |||||||||||||||
Investor Class II | 2,075 | – | – | – | – | |||||||||||||||
Total Expenses | 97,283 | 80,914 | 208,304 | 269,796 | 38,027 | |||||||||||||||
Net Expenses | 97,283 | 80,914 | 208,304 | 269,796 | 38,027 | |||||||||||||||
Net Investment Income | 215,617 | 164,189 | 605,403 | 593,558 | 87,339 | |||||||||||||||
Net realized loss on investments - affiliated securities | (1,111,287 | ) | (730,275 | ) | (2,159,418 | ) | (1,194,372 | ) | (113,103 | ) | ||||||||||
Net realized loss | (1,111,287 | ) | (730,275 | ) | (2,159,418 | ) | (1,194,372 | ) | (113,103 | ) | ||||||||||
Net change in unrealized appreciation on investments - affiliated securities | 3,119,584 | 1,643,089 | 5,146,325 | 3,655,701 | 486,753 | |||||||||||||||
Net change in unrealized appreciation | 3,119,584 | 1,643,089 | 5,146,325 | 3,655,701 | 486,753 | |||||||||||||||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS | 2,008,297 | 912,814 | 2,986,907 | 2,461,329 | 373,650 | |||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,223,914 | $ | 1,077,003 | $ | 3,592,310 | $ | 3,054,887 | $ | 460,989 |
See Notes to Financial Statements.
127| April 30, 2019
RiverFront Asset Allocation Aggressive |
Statements of Changes in Net Assets |
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 215,617 | $ | 916,735 | ||||
Net realized gain/(loss) | (1,111,287 | ) | 10,934,477 | |||||
Net change in unrealized appreciation/(depreciation) | 3,119,584 | (14,907,919 | ) | |||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 2,223,914 | (3,056,707 | ) | |||||
TOTAL DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class(b) | (978,331 | ) | (337,109 | ) | ||||
Class A | (1,998 | ) | – | |||||
Class C | (1,852,942 | ) | (422,163 | ) | ||||
Class I | (2,155,224 | ) | (552,595 | ) | ||||
Investor Class II(c) | (458,057 | ) | (134,600 | ) | ||||
Class L | (4,257,390 | ) | (999,039 | ) | ||||
Net Decrease in Net Assets from Distributions | (9,703,942 | ) | (2,445,507 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class(b) | 769,807 | 316,046 | ||||||
Class A(d) | 314,846 | 10,000 | ||||||
Class C | 307,898 | 1,137,491 | ||||||
Class I | 1,645,214 | 4,319,752 | ||||||
Investor Class II(c) | 72,801 | 35,666 | ||||||
Class L | 1,619,130 | 2,000,911 | ||||||
Dividends reinvested | ||||||||
Investor Class(b) | 945,702 | 332,210 | ||||||
Class A(d) | 1,998 | – | ||||||
Class C | 1,813,092 | 403,730 | ||||||
Class I | 1,923,202 | 513,505 | ||||||
Investor Class II(c) | 360,676 | 115,441 | ||||||
Class L | 4,241,732 | 994,742 | ||||||
Shares redeemed | ||||||||
Investor Class(b) | (1,135,087 | ) | (4,556,621 | ) | ||||
Class A(d) | (17,960 | ) | – | |||||
Class C | (2,610,178 | ) | (2,272,781 | ) | ||||
Class I | (5,172,514 | ) | (4,539,710 | ) | ||||
Investor Class II(c) | (608,438 | ) | (1,316,015 | ) | ||||
Class L | (3,006,861 | ) | (6,678,837 | ) | ||||
Net Increase/(Decrease) in Net Assets Derived from Beneficial Interest Transactions | 1,465,060 | (9,184,470 | ) | |||||
Net decrease in net assets | (6,014,968 | ) | (14,686,684 | ) | ||||
NET ASSETS | ||||||||
Beginning of period | 47,289,265 | 61,975,949 | ||||||
End of period | $ | 41,274,297 | $ | 47,289,265 |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Aggressive was known as the RiverFront Global Growth Fund. |
(b) | Prior to December 1, 2017, Investor Class was known as Class A. |
(c) | Prior to December 1, 2017, Investor Class II was known as Investor Class. |
(d) | Class A commenced operations on June 12, 2018. |
See Notes to Financial Statements.
128| April 30, 2019
RiverFront Asset Allocation Growth |
Statements of Changes in Net Assets |
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 164,189 | $ | 484,362 | ||||
Net realized gain/(loss) | (730,275 | ) | 5,724,784 | |||||
Net change in unrealized appreciation/(depreciation) | 1,643,089 | (7,705,320 | ) | |||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 1,077,003 | (1,496,174 | ) | |||||
TOTAL DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class(b) | (1,100,484 | ) | (119,251 | ) | ||||
Class A(c) | (1,683 | ) | – | |||||
Class C | (1,707,644 | ) | (182,204 | ) | ||||
Class I | (2,320,050 | ) | (253,902 | ) | ||||
Net Decrease in Net Assets from Distributions | (5,129,861 | ) | (555,357 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class(b) | 61,554 | 1,400,966 | ||||||
Class A(c) | 608,129 | 10,000 | ||||||
Class C | 612,345 | 1,468,934 | ||||||
Class I | 1,528,183 | 3,059,739 | ||||||
Dividends reinvested | ||||||||
Investor Class(b) | 1,081,037 | 116,807 | ||||||
Class A(c) | 1,683 | – | ||||||
Class C | 1,664,028 | 170,811 | ||||||
Class I | 2,237,531 | 249,708 | ||||||
Shares redeemed | ||||||||
Investor Class(b) | (1,989,656 | ) | (2,495,195 | ) | ||||
Class A(c) | (15,000 | ) | – | |||||
Class C | (2,907,018 | ) | (2,497,171 | ) | ||||
Class I | (2,885,081 | ) | (4,188,509 | ) | ||||
Net Decrease in Net Assets Derived from Beneficial Interest Transactions | (2,265 | ) | (2,703,910 | ) | ||||
Net decrease in net assets | (4,055,123 | ) | (4,755,441 | ) | ||||
NET ASSETS | ||||||||
Beginning of period | 29,163,467 | 33,918,908 | ||||||
End of period | $ | 25,108,344 | $ | 29,163,467 |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Growth was known as the RiverFront Global Allocation Fund. |
(b) | Prior to December 1, 2017, Investor Class was known as Class A. |
(c) | Class A commenced operations on June 12, 2018. |
See Notes to Financial Statements.
129| April 30, 2019
RiverFront Asset Allocation Growth & Income |
Statements of Changes in Net Assets |
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 605,403 | $ | 1,343,287 | ||||
Net realized gain/(loss) | (2,159,418 | ) | 12,049,269 | |||||
Net change in unrealized appreciation/(depreciation) | 5,146,325 | (17,250,198 | ) | |||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 3,592,310 | (3,857,642 | ) | |||||
TOTAL DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class(b) | (1,266,741 | ) | (498,424 | ) | ||||
Class A(c) | (5,424 | ) | (117 | ) | ||||
Class C | (3,067,763 | ) | (898,485 | ) | ||||
Class I | (6,515,014 | ) | (1,659,656 | ) | ||||
Net Decrease in Net Assets from Distributions | (10,854,942 | ) | (3,056,681 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class(b) | 141,663 | 1,153,407 | ||||||
Class A(c) | 1,095,084 | 13,540 | ||||||
Class C | 779,573 | 3,149,024 | ||||||
Class I | 4,370,053 | 30,676,562 | ||||||
Dividends reinvested | ||||||||
Investor Class(b) | 1,222,833 | 473,791 | ||||||
Class A(c) | 5,378 | 117 | ||||||
Class C | 2,941,028 | 853,722 | ||||||
Class I | 6,249,399 | 1,565,562 | ||||||
Shares redeemed | ||||||||
Investor Class(b) | (2,242,177 | ) | (10,902,547 | ) | ||||
Class A(c) | (218,342 | ) | – | |||||
Class C | (5,497,717 | ) | (5,371,606 | ) | ||||
Class I | (12,733,285 | ) | (9,883,640 | ) | ||||
Net Increase/(Decrease) in Net Assets Derived from Beneficial Interest Transactions | (3,886,510 | ) | 11,727,932 | |||||
Net increase/(decrease) in net assets | (11,149,142 | ) | 4,813,609 | |||||
NET ASSETS | ||||||||
Beginning of period | 83,934,573 | 79,120,964 | ||||||
End of period | $ | 72,785,431 | $ | 83,934,573 |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Growth & Income was known as the RiverFront Dynamic Equity Income Fund. |
(b) | Prior to December 1, 2017, Investor Class was known as Class A. |
(c) | Class A commenced operations on June 12, 2018. |
See Notes to Financial Statements.
130| April 30, 2019
RiverFront Asset Allocation Moderate |
Statements of Changes in Net Assets |
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 593,558 | $ | 1,293,172 | ||||
Net realized gain/(loss) | (1,194,372 | ) | 11,740,607 | |||||
Net change in unrealized appreciation/(depreciation) | 3,655,701 | (14,085,333 | ) | |||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 3,054,887 | (1,051,554 | ) | |||||
TOTAL DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class(b) | (1,126,475 | ) | (777,381 | ) | ||||
Class A(c) | (8,828 | ) | (101 | ) | ||||
Class C | (5,431,430 | ) | (2,844,467 | ) | ||||
Class I | (3,876,139 | ) | (2,005,140 | ) | ||||
Net Decrease in Net Assets from Distributions | (10,442,872 | ) | (5,627,089 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class(b) | 11,404 | 319,224 | ||||||
Class A(c) | 1,665,577 | 10,000 | ||||||
Class C | 765,245 | 1,962,397 | ||||||
Class I | 1,779,371 | 7,717,359 | ||||||
Dividends reinvested | ||||||||
Investor Class(b) | 1,075,365 | 716,488 | ||||||
Class A(c) | 8,780 | 101 | ||||||
Class C | 5,188,180 | 2,501,493 | ||||||
Class I | 3,578,667 | 1,872,861 | ||||||
Shares redeemed | ||||||||
Investor Class(b) | (2,864,235 | ) | (5,355,419 | ) | ||||
Class A(c) | (30,313 | ) | – | |||||
Class C | (10,541,264 | ) | (11,310,667 | ) | ||||
Class I | (6,616,180 | ) | (9,936,285 | ) | ||||
Net Decrease in Net Assets Derived from Beneficial Interest Transactions | (5,979,403 | ) | (11,502,448 | ) | ||||
Net decrease in net assets | (13,367,388 | ) | (18,181,091 | ) | ||||
NET ASSETS | ||||||||
Beginning of period | 77,274,050 | 95,455,141 | ||||||
End of period | $ | 63,906,662 | $ | 77,274,050 |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Moderate was known as the RiverFront Moderate Growth & Income Fund. |
(b) | Prior to December 1, 2017, Investor Class was known as Class A. |
(c) | Class A commenced operations on June 12, 2018. |
See Notes to Financial Statements.
131| April 30, 2019
RiverFront Asset Allocation Income & Growth |
Statements of Changes in Net Assets |
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 87,339 | $ | 175,809 | ||||
Net realized gain/(loss) | (113,103 | ) | 727,099 | |||||
Net change in unrealized appreciation/(depreciation) | 486,753 | (1,107,616 | ) | |||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 460,989 | (204,708 | ) | |||||
TOTAL DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class(b) | (10,983 | ) | (33,467 | ) | ||||
Class A(c) | (932 | ) | (107 | ) | ||||
Class C | (403,919 | ) | (195,462 | ) | ||||
Class I | (294,697 | ) | (129,870 | ) | ||||
Net Decrease in Net Assets from Distributions | (710,531 | ) | (358,906 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class(b) | – | 85,248 | ||||||
Class A(c) | 35,747 | 10,000 | ||||||
Class C | 744,610 | 546,309 | ||||||
Class I | 988,567 | 1,943,290 | ||||||
Dividends reinvested | ||||||||
Investor Class(b) | 10,930 | 33,226 | ||||||
Class A(c) | 876 | 107 | ||||||
Class C | 355,634 | 166,582 | ||||||
Class I | 294,452 | 121,619 | ||||||
Shares redeemed | ||||||||
Investor Class(b) | (29,814 | ) | (1,057,036 | ) | ||||
Class A(c) | (199 | ) | – | |||||
Class C | (1,460,912 | ) | (1,922,324 | ) | ||||
Class I | (1,860,656 | ) | (794,641 | ) | ||||
Net Decrease in Net Assets Derived from Beneficial Interest Transactions | (920,765 | ) | (867,620 | ) | ||||
Net decrease in net assets | (1,170,307 | ) | (1,431,234 | ) | ||||
NET ASSETS | ||||||||
Beginning of period | 9,717,892 | 11,149,126 | ||||||
End of period | $ | 8,547,585 | $ | 9,717,892 |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Income & Growth was known as the RiverFront Conservative Income Builder Fund. |
(b) | Prior to December 1, 2017, Investor Class was known as Class A. |
(c) | Class A commenced operations on June 12, 2018. |
See Notes to Financial Statements.
132| April 30, 2019
RiverFront Asset Allocation Aggressive – Investor Class |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31,2018(a)(b) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(c) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.59 | $ | 16.27 | $ | 13.54 | $ | 13.95 | $ | 15.44 | $ | 15.26 | $ | 14.89 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(d) | 0.06 | 0.25 | 0.16 | 0.23 | 0.24 | 0.08 | 0.12 | |||||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.23 | (1.27 | ) | 2.76 | (0.31 | ) | (0.04 | ) | 0.10 | 1.88 | ||||||||||||||||||
Total from investment operations | 0.29 | (1.02 | ) | 2.92 | (0.08 | ) | 0.20 | 0.18 | 2.00 | |||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.19 | ) | (0.21 | ) | (0.19 | ) | (0.20 | ) | (0.25 | ) | – | (0.12 | ) | |||||||||||||||
From net realized gains | (3.08 | ) | (0.45 | ) | – | (0.13 | ) | (1.44 | ) | – | (1.51 | ) | ||||||||||||||||
Total distributions | (3.27 | ) | (0.66 | ) | (0.19 | ) | (0.33 | ) | (1.69 | ) | – | (1.63 | ) | |||||||||||||||
Net increase/(decrease) in net asset value | (2.98 | ) | (1.68 | ) | 2.73 | (0.41 | ) | (1.49 | ) | 0.18 | 0.37 | |||||||||||||||||
Net asset value, end of period | $ | 11.61 | $ | 14.59 | $ | 16.27 | $ | 13.54 | $ | 13.95 | $ | 15.44 | $ | 15.26 | ||||||||||||||
TOTAL RETURN(e) | 5.41 | % | (6.62 | )% | 21.81 | % | (0.57 | )% | 1.34 | % | 1.18 | % | 13.66 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 4,366 | $ | 4,491 | $ | 8,935 | $ | 9,618 | $ | 18,308 | $ | 16,694 | $ | 16,440 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | %(f) | 0.93 | % | 1.45 | % | 1.40 | % | 1.38 | % | 1.38 | %(f) | 1.40 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | %(f) | 0.75 | %(g) | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | %(f) | 1.15 | % | ||||||||||||||
Ratio of net investment income to average net assets | 0.97 | %(f) | 1.56 | % | 1.09 | % | 1.77 | % | 1.67 | % | 1.08 | %(f) | 0.76 | % | ||||||||||||||
Portfolio turnover rate(h) | 9 | % | 200 | % | 60 | % | 113 | % | 71 | % | 48 | % | 85 | % |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Prior to February 28, 2018, the RiverFront Asset Allocation Aggressive was known as the RiverFront Global Growth Fund. |
(c) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(d) | Calculated using the average shares method. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(f) | Annualized |
(g) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(h) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
133| April 30, 2019
RiverFront Asset Allocation Aggressive – Class A
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period June 12, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period | $ | 14.51 | $ | 16.35 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.04 | 0.16 | ||||||
Net realized and unrealized gain/(loss) | 0.24 | (2.00 | ) | |||||
Total from investment operations | 0.28 | (1.84 | ) | |||||
DISTRIBUTIONS: | ||||||||
From net investment income | (0.19 | ) | – | |||||
From net realized gains | (3.08 | ) | – | |||||
Total distributions | (3.27 | ) | – | |||||
Net (decrease) in net asset value | (2.99 | ) | (1.84 | ) | ||||
Net asset value, end of period | $ | 11.52 | $ | 14.51 | ||||
TOTAL RETURN(b) | 5.38 | % | (11.25 | )% | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 315 | $ | 9 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | %(c) | 0.50 | %(c) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | %(c) | 0.50 | %(c) | ||||
Ratio of net investment income to average net assets | 0.70 | %(c) | 2.66 | %(c) | ||||
Portfolio turnover rate(d) | 9 | % | 200 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
134| April 30, 2019
RiverFront Asset Allocation Aggressive – Class C
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(b) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.01 | $ | 15.73 | $ | 13.18 | $ | 13.67 | $ | 15.19 | $ | 15.07 | $ | 14.76 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(c) | 0.02 | 0.12 | 0.04 | 0.12 | 0.13 | 0.03 | 0.01 | |||||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.19 | (1.20 | ) | 2.68 | (0.30 | ) | (0.04 | ) | 0.09 | 1.86 | ||||||||||||||||||
Total from investment operations | 0.21 | (1.08 | ) | 2.72 | (0.18 | ) | 0.09 | 0.12 | 1.87 | |||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.17 | ) | (0.19 | ) | (0.17 | ) | (0.18 | ) | (0.17 | ) | – | (0.05 | ) | |||||||||||||||
From net realized gains | (3.08 | ) | (0.45 | ) | – | (0.13 | ) | (1.44 | ) | – | (1.51 | ) | ||||||||||||||||
Total distributions | (3.25 | ) | (0.64 | ) | (0.17 | ) | (0.31 | ) | (1.61 | ) | – | (1.56 | ) | |||||||||||||||
Net increase/(decrease) in net asset value | (3.04 | ) | (1.72 | ) | 2.55 | (0.49 | ) | (1.52 | ) | 0.12 | 0.31 | |||||||||||||||||
Net asset value, end of period | $ | 10.97 | $ | 14.01 | $ | 15.73 | $ | 13.18 | $ | 13.67 | $ | 15.19 | $ | 15.07 | ||||||||||||||
TOTAL RETURN(d) | 4.99 | % | (7.24 | )% | 20.87 | % | (1.31 | )% | 0.59 | % | 0.80 | % | 12.84 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 6,562 | $ | 8,597 | $ | 10,408 | $ | 11,447 | $ | 12,908 | $ | 11,420 | $ | 11,511 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.25 | %(e) | 1.63 | % | 2.20 | % | 2.16 | % | 2.13 | % | 2.13 | %(e) | 2.15 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.25 | %(e) | 1.47 | %(f) | 1.90 | % | 1.90 | % | 1.90 | % | 1.90 | %(e) | 1.90 | % | ||||||||||||||
Ratio of net investment income to average net assets | 0.27 | %(e) | 0.80 | % | 0.29 | % | 0.92 | % | 0.88 | % | 0.38 | %(e) | 0.07 | % | ||||||||||||||
Portfolio turnover rate(g) | 9 | % | 200 | % | 60 | % | 113 | % | 71 | % | 48 | % | 85 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Aggressive was known as the RiverFront Global Growth Fund. |
(b) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(c) | Calculated using the average shares method. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(e) | Annualized. |
(f) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annualexpenses. Refer to Note 8. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
135| April 30, 2019
RiverFront Asset Allocation Aggressive – Class I
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(b) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.78 | $ | 16.43 | $ | 13.65 | $ | 14.03 | $ | 15.52 | $ | 15.32 | $ | 14.92 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(c) | 0.08 | 0.29 | 0.19 | 0.26 | 0.26 | 0.10 | 0.17 | |||||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.23 | (1.27 | ) | 2.78 | (0.30 | ) | (0.03 | ) | 0.10 | 1.89 | ||||||||||||||||||
Total from investment operations | 0.31 | (0.98 | ) | 2.97 | (0.04 | ) | 0.23 | 0.20 | 2.06 | |||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.19 | ) | (0.22 | ) | (0.19 | ) | (0.21 | ) | (0.28 | ) | – | (0.15 | ) | |||||||||||||||
From net realized gains | (3.08 | ) | (0.45 | ) | – | (0.13 | ) | (1.44 | ) | – | (1.51 | ) | ||||||||||||||||
Total distributions | (3.27 | ) | (0.67 | ) | (0.19 | ) | (0.34 | ) | (1.72 | ) | – | (1.66 | ) | |||||||||||||||
Net increase/(decrease) in net asset value | (2.96 | ) | (1.65 | ) | 2.78 | (0.38 | ) | (1.49 | ) | 0.20 | 0.40 | |||||||||||||||||
Net asset value, end of period | $ | 11.82 | $ | 14.78 | $ | 16.43 | $ | 13.65 | $ | 14.03 | $ | 15.52 | $ | 15.32 | ||||||||||||||
TOTAL RETURN(d) | 5.56 | % | (6.33 | )% | 22.05 | % | (0.31 | )% | 1.51 | % | 1.31 | % | 14.01 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 9,472 | $ | 12,701 | $ | 13,873 | $ | 10,140 | $ | 16,412 | $ | 13,343 | $ | 11,845 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.25 | %(e) | 0.62 | % | 1.20 | % | 1.15 | % | 1.29 | % | 1.36 | %(e) | 1.16 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.25 | %(e) | 0.46 | %(f) | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | %(e) | 0.90 | % | ||||||||||||||
Ratio of net investment income to average net assets | 1.26 | %(e) | 1.79 | % | 1.29 | % | 1.98 | % | 1.77 | % | 1.32 | %(e) | 1.13 | % | ||||||||||||||
Portfolio turnover rate(g) | 9 | % | 200 | % | 60 | % | 113 | % | 71 | % | 48 | % | 85 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Aggressive was known as the RiverFront Global Growth Fund. |
(b) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(c) | Calculated using the average shares method. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(e) | Annualized. |
(f) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
136| April 30, 2019
RiverFront Asset Allocation Aggressive – Investor Class II
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a)(b) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(c) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.50 | $ | 16.18 | $ | 13.47 | $ | 13.87 | $ | 15.37 | $ | 15.19 | $ | 14.82 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(d) | 0.01 | 0.25 | 0.15 | 0.23 | 0.26 | 0.09 | 0.13 | |||||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.27 | (1.27 | ) | 2.75 | (0.30 | ) | (0.07 | ) | 0.09 | 1.87 | ||||||||||||||||||
Total from investment operations | 0.28 | (1.02 | ) | 2.90 | (0.07 | ) | 0.19 | 0.18 | 2.00 | |||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.19 | ) | (0.21 | ) | (0.19 | ) | (0.20 | ) | (0.25 | ) | – | (0.12 | ) | |||||||||||||||
From net realized gains | (3.08 | ) | (0.45 | ) | – | (0.13 | ) | (1.44 | ) | – | (1.51 | ) | ||||||||||||||||
Total distributions | (3.27 | ) | (0.66 | ) | (0.19 | ) | (0.33 | ) | (1.69 | ) | – | (1.63 | ) | |||||||||||||||
Net increase/(decrease) in net asset value | (2.99 | ) | (1.68 | ) | 2.71 | (0.40 | ) | (1.50 | ) | 0.18 | 0.37 | |||||||||||||||||
Net asset value, end of period | $ | 11.51 | $ | 14.50 | $ | 16.18 | $ | 13.47 | $ | 13.87 | $ | 15.37 | $ | 15.19 | ||||||||||||||
TOTAL RETURN(e) | 5.39 | % | (6.66 | )% | 21.77 | % | (0.51 | )% | 1.28 | % | 1.18 | % | 13.73 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,455 | $ | 2,043 | $ | 3,451 | $ | 4,667 | $ | 6,924 | $ | 7,762 | $ | 8,361 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | %(f) | 0.91 | % | 1.45 | % | 1.40 | % | 1.38 | % | 1.38 | %(f) | 1.41 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | %(f) | 0.74 | %(g) | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | %(f) | 1.15 | % | ||||||||||||||
Ratio of net investment income to average net assets | 1.10 | %(f) | 1.58 | % | 1.04 | % | 1.75 | % | 1.78 | % | 1.14 | %(f) | 0.85 | % | ||||||||||||||
Portfolio turnover rate(h) | 9 | % | 200 | % | 60 | % | 113 | % | 71 | % | 48 | % | 85 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Aggressive was known as the RiverFront Global Growth Fund. |
(b) | Prior to December 1, 2017, Investor Class II was known as Investor Class. |
(c) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(d) | Calculated using the average shares method. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(f) | Annualized. |
(g) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(h) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
137| April 30, 2019
RiverFront Asset Allocation Aggressive – Class L
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(b) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.76 | $ | 16.41 | $ | 13.63 | $ | 14.01 | $ | 15.49 | $ | 15.29 | $ | 14.90 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(c) | 0.83 | 0.30 | 0.19 | 0.25 | 0.27 | 0.11 | 0.17 | |||||||||||||||||||||
Net realized and unrealized gain/(loss) | (0.53 | ) | (1.28 | ) | 2.78 | (0.29 | ) | (0.03 | ) | 0.09 | 1.88 | |||||||||||||||||
Total from investment operations | 0.30 | (0.98 | ) | 2.97 | (0.04 | ) | 0.24 | 0.20 | 2.05 | |||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.19 | ) | (0.22 | ) | (0.19 | ) | (0.21 | ) | (0.28 | ) | – | (0.15 | ) | |||||||||||||||
From net realized gains | (3.08 | ) | (0.45 | ) | – | (0.13 | ) | (1.44 | ) | – | (1.51 | ) | ||||||||||||||||
Total distributions | (3.27 | ) | (0.67 | ) | (0.19 | ) | (0.34 | ) | (1.72 | ) | – | (1.66 | ) | |||||||||||||||
Net increase/(decrease) in net asset value | (2.97 | ) | (1.65 | ) | 2.78 | (0.38 | ) | (1.48 | ) | 0.20 | 0.39 | |||||||||||||||||
Net asset value, end of period | $ | 11.79 | $ | 14.76 | $ | 16.41 | $ | 13.63 | $ | 14.01 | $ | 15.49 | $ | 15.29 | ||||||||||||||
TOTAL RETURN(d) | 5.48 | % | (6.34 | )% | 22.08 | % | (0.31 | )% | 1.59 | % | 1.31 | % | 13.98 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 19,105 | $ | 19,449 | $ | 25,309 | $ | 22,552 | $ | 26,109 | $ | 24,400 | $ | 25,092 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.25 | %(e) | 0.63 | % | 1.20 | % | 1.16 | % | 1.04 | % | 1.02 | %(e) | 1.15 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.25 | %(e) | 0.47 | %(f) | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | %(e) | 0.90 | % | ||||||||||||||
Ratio of net investment income to average net assets | 1.23 | %(e) | 1.82 | % | 1.27 | % | 1.90 | % | 1.86 | % | 1.37 | %(e) | 1.11 | % | ||||||||||||||
Portfolio turnover rate(g) | 9 | % | 200 | % | 60 | % | 113 | % | 71 | % | 48 | % | 85 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Aggressive was known as the RiverFront Global Growth Fund. |
(b) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(c) | Calculated using the average shares method. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(e) | Annualized. |
(f) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
138| April 30, 2019
RiverFront Asset Allocation Growth – Investor Class
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a)(b) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(c) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.20 | $ | 14.12 | $ | 11.91 | $ | 12.20 | $ | 13.14 | $ | 12.97 | $ | 11.93 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(d) | 0.08 | 0.23 | 0.15 | 0.21 | 0.22 | 0.08 | 0.10 | |||||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.28 | (0.91 | ) | 2.23 | (0.32 | ) | (0.06 | ) | 0.09 | 1.36 | ||||||||||||||||||
Total from investment operations | 0.36 | (0.68 | ) | 2.38 | (0.11 | ) | 0.16 | 0.17 | 1.46 | |||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.17 | ) | (0.16 | ) | (0.17 | ) | (0.14 | ) | (0.21 | ) | – | (0.09 | ) | |||||||||||||||
From net realized gains | (2.28 | ) | (0.08 | ) | – | (0.04 | ) | (0.89 | ) | – | (0.33 | ) | ||||||||||||||||
Total distributions | (2.45 | ) | (0.24 | ) | (0.17 | ) | (0.18 | ) | (1.10 | ) | – | (0.42 | ) | |||||||||||||||
Net increase/(decrease) in net asset value | (2.09 | ) | (0.92 | ) | 2.21 | (0.29 | ) | (0.94 | ) | 0.17 | 1.04 | |||||||||||||||||
Net asset value, end of period | $ | 11.11 | $ | 13.20 | $ | 14.12 | $ | 11.91 | $ | 12.20 | $ | 13.14 | $ | 12.97 | ||||||||||||||
TOTAL RETURN(e) | 5.36 | % | (4.93 | )% | 20.22 | % | (0.88 | )% | 1.23 | % | 1.31 | % | 12.32 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 4,305 | $ | 6,077 | $ | 7,452 | $ | 6,467 | $ | 8,456 | $ | 8,372 | $ | 9,098 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | %(f) | 0.87 | % | 1.52 | % | 1.45 | % | 1.43 | % | 1.50 | %(f) | 1.51 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | %(f) | 0.72 | %(g) | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | %(f) | 1.15 | % | ||||||||||||||
Ratio of net investment income to average net assets | 1.44 | %(f) | 1.62 | % | 1.14 | % | 1.78 | % | 1.71 | % | 1.21 | %(f) | 0.83 | % | ||||||||||||||
Portfolio turnover rate(h) | 16 | % | 210 | % | 56 | % | 124 | % | 71 | % | 47 | % | 95 | % |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Prior to February 28, 2018, the RiverFront Asset Allocation Growth was known as the RiverFront Global Allocation Fund. |
(c) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(d) | Calculated using the average shares method. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(f) | Annualized. |
(g) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(h) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
139| April 30, 2019
RiverFront Asset Allocation Growth – Class A
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period June 12, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period | $ | 13.20 | $ | 14.57 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.06 | 0.15 | ||||||
Net realized and unrealized gain/(loss) | 0.31 | (1.52 | ) | |||||
Total from investment operations | 0.37 | (1.37 | ) | |||||
DISTRIBUTIONS: | ||||||||
From net investment income | (0.17 | ) | – | |||||
From net realized gains | (2.28 | ) | – | |||||
Total distributions | (2.45 | ) | – | |||||
Net (decrease) in net asset value | (2.08 | ) | (1.37 | ) | ||||
Net asset value, end of period | $ | 11.12 | $ | 13.20 | ||||
TOTAL RETURN(b) | 5.44 | % | (9.40 | )% | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 620 | $ | 9 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | %(c) | 0.50 | %(c) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | %(c) | 0.50 | %(c) | ||||
Ratio of net investment income to average net assets | 1.07 | %(c) | 2.68 | %(c) | ||||
Portfolio turnover rate(d) | 16 | % | 210 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
140| April 30, 2019
RiverFront Asset Allocation Growth – Class C
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(b) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 12.71 | $ | 13.69 | $ | 11.62 | $ | 11.98 | $ | 12.95 | $ | 12.83 | $ | 11.84 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(c) | 0.04 | 0.12 | 0.05 | 0.11 | 0.12 | 0.03 | 0.01 | |||||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.25 | (0.88 | ) | 2.17 | (0.31 | ) | (0.06 | ) | 0.09 | 1.34 | ||||||||||||||||||
Total from investment operations | 0.29 | (0.76 | ) | 2.22 | (0.20 | ) | 0.06 | 0.12 | 1.35 | |||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.15 | ) | (0.14 | ) | (0.15 | ) | (0.12 | ) | (0.14 | ) | – | (0.03 | ) | |||||||||||||||
From net realized gains | (2.28 | ) | (0.08 | ) | – | (0.04 | ) | (0.89 | ) | – | (0.33 | ) | ||||||||||||||||
Total distributions | (2.43 | ) | (0.22 | ) | (0.15 | ) | (0.16 | ) | (1.03 | ) | – | (0.36 | ) | |||||||||||||||
Net increase/(decrease) in net asset value | (2.14 | ) | (0.98 | ) | 2.07 | (0.36 | ) | (0.97 | ) | 0.12 | 0.99 | |||||||||||||||||
Net asset value, end of period | $ | 10.57 | $ | 12.71 | $ | 13.69 | $ | 11.62 | $ | 11.98 | $ | 12.95 | $ | 12.83 | ||||||||||||||
TOTAL RETURN(d) | 4.95 | % | (5.66 | )% | 19.36 | % | (1.61 | )% | 0.46 | % | 0.94 | % | 11.48 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 7,726 | $ | 9,738 | $ | 11,341 | $ | 14,694 | $ | 17,089 | $ | 14,758 | $ | 14,624 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.25 | %(e) | 1.63 | % | 2.26 | % | 2.20 | % | 2.18 | % | 2.25 | %(e) | 2.26 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.25 | %(e) | 1.47 | %(f) | 1.90 | % | 1.90 | % | 1.90 | % | 1.90 | %(e) | 1.90 | % | ||||||||||||||
Ratio of net investment income to average net assets | 0.67 | %(e) | 0.88 | % | 0.42 | % | 0.95 | % | 0.94 | % | 0.40 | %(e) | 0.05 | % | ||||||||||||||
Portfolio turnover rate(g) | 16 | % | 210 | % | 56 | % | 124 | % | 71 | % | 47 | % | 95 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Growth was known as the RiverFront Global Allocation Fund. |
(b) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(c) | Calculated using the average shares method. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(e) | Annualized. |
(f) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
141| April 30, 2019
RiverFront Asset Allocation Growth – Class I
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(b) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.05 | $ | 13.94 | $ | 11.73 | $ | 11.99 | $ | 12.92 | $ | 12.75 | $ | 11.72 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(c) | 0.09 | 0.26 | 0.18 | 0.22 | 0.22 | 0.09 | 0.13 | |||||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.28 | (0.91 | ) | 2.20 | (0.30 | ) | (0.04 | ) | 0.08 | 1.34 | ||||||||||||||||||
Total from investment operations | 0.37 | (0.65 | ) | 2.38 | (0.08 | ) | 0.18 | 0.17 | 1.47 | |||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.18 | ) | (0.16 | ) | (0.17 | ) | (0.14 | ) | (0.22 | ) | – | (0.11 | ) | |||||||||||||||
From net realized gains | (2.28 | ) | (0.08 | ) | – | (0.04 | ) | (0.89 | ) | – | (0.33 | ) | ||||||||||||||||
Total distributions | (2.46 | ) | (0.25 | ) | (0.17 | ) | (0.18 | ) | (1.11 | ) | – | (0.44 | ) | |||||||||||||||
Net increase/(decrease) in net asset value | (2.09 | ) | (0.89 | ) | 2.21 | (0.26 | ) | (0.93 | ) | 0.17 | 1.03 | |||||||||||||||||
Net asset value, end of period | $ | 10.96 | $ | 13.05 | $ | 13.94 | $ | 11.73 | $ | 11.99 | $ | 12.92 | $ | 12.75 | ||||||||||||||
TOTAL RETURN(d) | 5.47 | % | (4.74 | )% | 20.58 | % | (0.60 | )% | 1.49 | % | 1.33 | % | 12.61 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 12,457 | $ | 13,339 | $ | 15,126 | $ | 14,240 | $ | 18,739 | $ | 12,895 | $ | 10,521 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.25 | %(e) | 0.62 | % | 1.27 | % | 1.20 | % | 1.18 | % | 1.26 | %(e) | 1.26 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.25 | %(e) | 0.47 | %(f) | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | %(e) | 0.90 | % | ||||||||||||||
Ratio of net investment income to average net assets | 1.65 | %(e) | 1.87 | % | 1.39 | % | 1.94 | % | 1.83 | % | 1.41 | %(e) | 1.07 | % | ||||||||||||||
Portfolio turnover rate(g) | 16 | % | 210 | % | 56 | % | 124 | % | 71 | % | 47 | % | 95 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Growth was known as the RiverFront Global Allocation Fund. |
(b) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(c) | Calculated using the average shares method. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(e) | Annualized. |
(f) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
142| April 30, 2019
RiverFront Asset Allocation Growth & Income – Investor Class
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a)(b) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(c) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.37 | $ | 14.48 | $ | 12.38 | $ | 12.63 | $ | 13.10 | $ | 12.97 | $ | 12.24 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(d) | 0.10 | 0.25 | 0.17 | 0.21 | 0.25 | 0.09 | 0.17 | |||||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.41 | (0.80 | ) | 2.09 | (0.00 | )(e) | (0.04 | ) | 0.13 | 1.17 | ||||||||||||||||||
Total from investment operations | 0.51 | (0.55 | ) | 2.26 | 0.21 | 0.21 | 0.22 | 1.34 | ||||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.10 | ) | (0.24 | ) | (0.16 | ) | (0.21 | ) | (0.22 | ) | (0.09 | ) | (0.17 | ) | ||||||||||||||
From net realized gains | (1.78 | ) | (0.32 | ) | – | (0.25 | ) | (0.46 | ) | – | (0.44 | ) | ||||||||||||||||
Total distributions | (1.88 | ) | (0.56 | ) | (0.16 | ) | (0.46 | ) | (0.68 | ) | (0.09 | ) | (0.61 | ) | ||||||||||||||
Net increase/(decrease) in net asset value | (1.37 | ) | (1.11 | ) | 2.10 | (0.25 | ) | (0.47 | ) | 0.13 | 0.73 | |||||||||||||||||
Net asset value, end of period | $ | 12.00 | $ | 13.37 | $ | 14.48 | $ | 12.38 | $ | 12.63 | $ | 13.10 | $ | 12.97 | ||||||||||||||
TOTAL RETURN(f) | 5.56 | % | (4.03 | )% | 18.37 | % | 1.80 | % | 1.64 | % | 1.66 | % | 11.15 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 7,342 | $ | 9,062 | $ | 19,123 | $ | 20,227 | $ | 19,769 | $ | 17,275 | $ | 15,374 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | %(g) | 0.85 | % | 1.37 | % | 1.35 | % | 1.35 | % | 1.39 | %(g) | 1.42 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | %(g) | 0.74 | %(h) | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | %(g) | 1.15 | % | ||||||||||||||
Ratio of net investment income to average net assets | 1.67 | %(g) | 1.70 | % | 1.24 | % | 1.74 | % | 1.98 | % | 1.33 | %(g) | 1.38 | % | ||||||||||||||
Portfolio turnover rate(i) | 24 | % | 224 | % | 63 | % | 129 | % | 75 | % | 45 | % | 99 | % |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Prior to February 28, 2018, the RiverFront Asset Allocation Growth & Income was known as the RiverFront Dynamic Equity Income Fund. |
(c) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(d) | Calculated using the average shares method. |
(e) | Less than $0.005 or ($0.005) per share. |
(f) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(g) | Annualized. |
(h) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(i) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
143| April 30, 2019
RiverFront Asset Allocation Growth & Income – Class A
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period June 12, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period | $ | 13.36 | $ | 14.70 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.08 | 0.15 | ||||||
Net realized and unrealized gain/(loss) | 0.43 | (1.34 | ) | |||||
Total from investment operations | 0.51 | (1.19 | ) | |||||
DISTRIBUTIONS: | ||||||||
From net investment income | (0.10 | ) | (0.15 | ) | ||||
From net realized gains | (1.78 | ) | – | |||||
Total distributions | (1.88 | ) | (0.15 | ) | ||||
Net (decrease) in net asset value | (1.37 | ) | (1.34 | ) | ||||
Net asset value, end of period | $ | 11.99 | $ | 13.36 | ||||
TOTAL RETURN(b) | 5.60 | % | (8.13 | )% | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 917 | $ | 13 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | %(c) | 0.50 | %(c) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | %(c) | 0.50 | %(c) | ||||
Ratio of net investment income to average net assets | 1.42 | %(c) | 2.65 | %(c) | ||||
Portfolio turnover rate(d) | 24 | % | 224 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
144| April 30, 2019
RiverFront Asset Allocation Growth & Income – Class C
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(b) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.03 | $ | 14.16 | $ | 12.15 | $ | 12.44 | $ | 12.97 | $ | 12.84 | $ | 12.13 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(c) | 0.05 | 0.14 | 0.07 | 0.13 | 0.15 | 0.04 | 0.08 | |||||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.40 | (0.78 | ) | 2.05 | (0.02 | ) | (0.04 | ) | 0.13 | 1.15 | ||||||||||||||||||
Total from investment operations | 0.45 | (0.64 | ) | 2.12 | 0.11 | 0.11 | 0.17 | 1.23 | ||||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.06 | ) | (0.17 | ) | (0.11 | ) | (0.15 | ) | (0.18 | ) | (0.04 | ) | (0.08 | ) | ||||||||||||||
From net realized gains | (1.78 | ) | (0.32 | ) | – | (0.25 | ) | (0.46 | ) | – | (0.44 | ) | ||||||||||||||||
Total distributions | (1.84 | ) | (0.49 | ) | (0.11 | ) | (0.40 | ) | (0.64 | ) | (0.04 | ) | (0.52 | ) | ||||||||||||||
Net increase/(decrease) in net asset value | (1.39 | ) | (1.13 | ) | 2.01 | (0.29 | ) | (0.53 | ) | 0.13 | 0.71 | |||||||||||||||||
Net asset value, end of period | $ | 11.64 | $ | 13.03 | $ | 14.16 | $ | 12.15 | $ | 12.44 | $ | 12.97 | $ | 12.84 | ||||||||||||||
TOTAL RETURN(d) | 5.19 | % | (4.74 | )% | 17.53 | % | 0.97 | % | 0.86 | % | 1.30 | % | 10.34 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 19,235 | $ | 23,111 | $ | 26,514 | $ | 32,217 | $ | 34,766 | $ | 30,170 | $ | 25,787 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.25 | %(e) | 1.57 | % | 2.12 | % | 2.10 | % | 2.10 | % | 2.15 | %(e) | 2.18 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.25 | %(e) | 1.47 | %(f) | 1.90 | % | 1.90 | % | 1.90 | % | 1.90 | %(e) | 1.90 | % | ||||||||||||||
Ratio of net investment income to average net assets | 0.92 | %(e) | 1.01 | % | 0.51 | % | 1.08 | % | 1.18 | % | 0.60 | %(e) | 0.61 | % | ||||||||||||||
Portfolio turnover rate(g) | 24 | % | 224 | % | 63 | % | 129 | % | 75 | % | 45 | % | 99 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Growth & Income was known as the RiverFront Dynamic Equity Income Fund. |
(b) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(c) | Calculated using the average shares method. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(e) | Annualized. |
(f) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
145| April 30, 2019
RiverFront Asset Allocation Growth & Income – Class I
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(b) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.31 | $ | 14.42 | $ | 12.31 | $ | 12.56 | $ | 13.02 | $ | 12.88 | $ | 12.16 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(c) | 0.11 | 0.29 | 0.20 | 0.25 | 0.28 | 0.10 | 0.20 | |||||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.42 | (0.82 | ) | 2.09 | (0.01 | ) | (0.05 | ) | 0.14 | 1.16 | ||||||||||||||||||
Total from investment operations | 0.53 | (0.53 | ) | 2.29 | 0.24 | 0.23 | 0.24 | 1.36 | ||||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.11 | ) | (0.26 | ) | (0.18 | ) | (0.24 | ) | (0.23 | ) | (0.10 | ) | (0.20 | ) | ||||||||||||||
From net realized gains | (1.78 | ) | (0.32 | ) | – | (0.25 | ) | (0.46 | ) | – | (0.44 | ) | ||||||||||||||||
Total distributions | (1.89 | ) | (0.59 | ) | (0.18 | ) | (0.49 | ) | (0.69 | ) | (0.10 | ) | (0.64 | ) | ||||||||||||||
Net increase/(decrease) in net asset value | (1.36 | ) | (1.11 | ) | 2.11 | (0.25 | ) | (0.46 | ) | 0.14 | 0.72 | |||||||||||||||||
Net asset value, end of period | $ | 11.95 | $ | 13.31 | $ | 14.42 | $ | 12.31 | $ | 12.56 | $ | 13.02 | $ | 12.88 | ||||||||||||||
TOTAL RETURN(d) | 5.79 | % | (3.88 | )% | 18.75 | % | 2.01 | % | 1.83 | % | 1.88 | % | 11.40 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 45,290 | $ | 51,749 | $ | 33,484 | $ | 28,833 | $ | 22,780 | $ | 20,997 | $ | 18,254 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.25 | %(e) | 0.53 | % | 1.12 | % | 1.10 | % | 1.10 | % | 1.15 | %(e) | 1.17 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.25 | %(e) | 0.44 | %(f) | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | %(e) | 0.90 | % | ||||||||||||||
Ratio of net investment income to average net assets | 1.91 | %(e) | 2.04 | % | 1.50 | % | 2.06 | % | 2.21 | % | 1.57 | %(e) | 1.61 | % | ||||||||||||||
Portfolio turnover rate(g) | 24 | % | 224 | % | 63 | % | 129 | % | 75 | % | 45 | % | 99 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Growth & Income was known as the RiverFront Dynamic Equity Income Fund. |
(b) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(c) | Calculated using the average shares method. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(e) | Annualized. |
(f) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
146| April 30, 2019
RiverFront Asset Allocation Moderate – Investor Class
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a)(b) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(c) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.54 | $ | 12.47 | $ | 11.22 | $ | 11.48 | $ | 12.15 | $ | 11.99 | $ | 11.66 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(d) | 0.11 | 0.22 | 0.18 | 0.21 | 0.23 | 0.09 | 0.16 | |||||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.34 | (0.36 | ) | 1.23 | (0.01 | ) | (0.06 | ) | 0.16 | 0.89 | ||||||||||||||||||
Total from investment operations | 0.45 | (0.14 | ) | 1.41 | 0.20 | 0.17 | 0.25 | 1.05 | ||||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.10 | ) | (0.22 | ) | (0.16 | ) | (0.21 | ) | (0.20 | ) | (0.09 | ) | (0.16 | ) | ||||||||||||||
From net realized gains | (1.58 | ) | (0.57 | ) | – | (0.25 | ) | (0.64 | ) | – | (0.56 | ) | ||||||||||||||||
Total distributions | (1.68 | ) | (0.79 | ) | (0.16 | ) | (0.46 | ) | (0.84 | ) | (0.09 | ) | (0.72 | ) | ||||||||||||||
Net increase/(decrease) in net asset value | (1.23 | ) | (0.93 | ) | 1.25 | (0.26 | ) | (0.67 | ) | 0.16 | 0.33 | |||||||||||||||||
Net asset value, end of period | $ | 10.31 | $ | 11.54 | $ | 12.47 | $ | 11.22 | $ | 11.48 | $ | 12.15 | $ | 11.99 | ||||||||||||||
TOTAL RETURN(e) | 5.41 | % | (1.32 | )% | 12.67 | % | 1.81 | % | 1.33 | % | 2.12 | % | 9.16 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 5,646 | $ | 8,244 | $ | 13,311 | $ | 22,679 | $ | 24,402 | $ | 27,598 | $ | 31,033 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | %(f) | 0.84 | % | 1.33 | % | 1.31 | % | 1.30 | % | 1.31 | %(f) | 1.32 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | %(f) | 0.74 | %(g) | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | %(f) | 1.15 | % | ||||||||||||||
Ratio of net investment income to average net assets | 2.06 | %(f) | 1.78 | % | 1.49 | % | 1.87 | % | 1.97 | % | 1.54 | %(f) | 1.35 | % | ||||||||||||||
Portfolio turnover rate(h) | 19 | % | 209 | % | 56 | % | 132 | % | 110 | % | 42 | % | 98 | % |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Prior to February 28, 2018, the RiverFront Asset Allocation Moderate was known as the RiverFront Moderate Growth & Income Fund. |
(c) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(d) | Calculated using the average shares method. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(f) | Annualized. |
(g) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(h) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
147| April 30, 2019
RiverFront Asset Allocation Moderate – Class A
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period June 12, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period | $ | 11.53 | $ | 12.28 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.10 | 0.11 | ||||||
Net realized and unrealized gain/(loss) | 0.36 | (0.74 | ) | |||||
Total from investment operations | 0.46 | (0.63 | ) | |||||
DISTRIBUTIONS: | ||||||||
From net investment income | (0.10 | ) | (0.12 | ) | ||||
From net realized gains | (1.58 | ) | – | |||||
Total distributions | (1.68 | ) | (0.12 | ) | ||||
Net (decrease) in net asset value | (1.22 | ) | (0.75 | ) | ||||
Net asset value, end of period | $ | 10.31 | $ | 11.53 | ||||
TOTAL RETURN(b) | 5.56 | % | (5.15 | )% | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 1,692 | $ | 9 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | %(c) | 0.50 | %(c) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | %(c) | 0.50 | %(c) | ||||
Ratio of net investment income to average net assets | 1.90 | %(c) | 2.44 | %(c) | ||||
Portfolio turnover rate(d) | 19 | % | 209 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
148| April 30, 2019
RiverFront Asset Allocation Moderate – Class C |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(b) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.39 | $ | 12.34 | $ | 11.12 | $ | 11.39 | $ | 12.10 | $ | 11.94 | $ | 11.62 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(c) | 0.07 | 0.12 | 0.08 | 0.13 | 0.13 | 0.05 | 0.07 | |||||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.35 | (0.36 | ) | 1.24 | (0.02 | ) | (0.06 | ) | 0.16 | 0.89 | ||||||||||||||||||
Total from investment operations | 0.42 | (0.24 | ) | 1.32 | 0.11 | 0.07 | 0.21 | 0.96 | ||||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.07 | ) | (0.14 | ) | (0.10 | ) | (0.13 | ) | (0.14 | ) | (0.05 | ) | (0.08 | ) | ||||||||||||||
From net realized gains | (1.58 | ) | (0.57 | ) | – | (0.25 | ) | (0.64 | ) | – | (0.56 | ) | ||||||||||||||||
Total distributions | (1.65 | ) | (0.71 | ) | (0.10 | ) | (0.38 | ) | (0.78 | ) | (0.05 | ) | (0.64 | ) | ||||||||||||||
Net increase/(decrease) in net asset value | (1.23 | ) | (0.95 | ) | 1.22 | (0.27 | ) | (0.71 | ) | 0.16 | 0.32 | |||||||||||||||||
Net asset value, end of period | $ | 10.16 | $ | 11.39 | $ | 12.34 | $ | 11.12 | $ | 11.39 | $ | 12.10 | $ | 11.94 | ||||||||||||||
TOTAL RETURN(d) | 5.13 | % | (2.16 | )% | 11.94 | % | 1.03 | % | 0.52 | % | 1.75 | % | 8.33 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 32,267 | $ | 40,792 | $ | 51,231 | $ | 63,480 | $ | 70,771 | $ | 66,445 | $ | 63,031 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.25 | %(e) | 1.56 | % | 2.08 | % | 2.06 | % | 2.05 | % | 2.07 | %(e) | 2.07 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.25 | %(e) | 1.47 | %(f) | 1.90 | % | 1.90 | % | 1.90 | % | 1.90 | %(e) | 1.90 | % | ||||||||||||||
Ratio of net investment income to average net assets | 1.32 | %(e) | 1.03 | % | 0.70 | % | 1.14 | % | 1.14 | % | 0.77 | %(e) | 0.59 | % | ||||||||||||||
Portfolio turnover rate(g) | 19 | % | 209 | % | 56 | % | 132 | % | 110 | % | 42 | % | 98 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Moderate was known as the RiverFront Moderate Growth & Income Fund. |
(b) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(c) | Calculated using the average shares method. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(e) | Annualized. |
(f) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
149| April 30, 2019
RiverFront Asset Allocation Moderate – Class I |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(b) | For the Year Ended April 30, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.54 | $ | 12.48 | $ | 11.21 | $ | 11.47 | $ | 12.14 | $ | 11.98 | $ | 11.65 | ||||||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||||||
Net investment income(c) | 0.12 | 0.25 | 0.20 | 0.24 | 0.25 | 0.11 | 0.19 | |||||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.35 | (0.37 | ) | 1.25 | (0.01 | ) | (0.06 | ) | 0.16 | 0.89 | ||||||||||||||||||
Total from investment operations | 0.47 | (0.12 | ) | 1.45 | 0.23 | 0.19 | 0.27 | 1.08 | ||||||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||||||
From net investment income | (0.11 | ) | (0.25 | ) | (0.18 | ) | (0.24 | ) | (0.22 | ) | (0.11 | ) | (0.19 | ) | ||||||||||||||
From net realized gains | (1.58 | ) | (0.57 | ) | – | (0.25 | ) | (0.64 | ) | – | (0.56 | ) | ||||||||||||||||
Total distributions | (1.69 | ) | (0.82 | ) | (0.18 | ) | (0.49 | ) | (0.86 | ) | (0.11 | ) | (0.75 | ) | ||||||||||||||
Net increase/(decrease) in net asset value | (1.22 | ) | (0.94 | ) | 1.27 | (0.26 | ) | (0.67 | ) | 0.16 | 0.33 | |||||||||||||||||
Net asset value, end of period | $ | 10.32 | $ | 11.54 | $ | 12.48 | $ | 11.21 | $ | 11.47 | $ | 12.14 | $ | 11.98 | ||||||||||||||
TOTAL RETURN(d) | 5.63 | % | (1.16 | )% | 13.05 | % | 2.05 | % | 1.50 | % | 2.25 | % | 9.43 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 24,301 | $ | 28,228 | $ | 30,913 | $ | 43,056 | $ | 46,350 | $ | 42,081 | $ | 37,832 | ||||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.25 | %(e) | 0.56 | % | 1.08 | % | 1.06 | % | 1.05 | % | 1.07 | %(e) | 1.07 | % | ||||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.25 | %(e) | 0.47 | %(f) | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | %(e) | 0.90 | % | ||||||||||||||
Ratio of net investment income to average net assets | 2.32 | %(e) | 2.02 | % | 1.71 | % | 2.16 | % | 2.16 | % | 1.77 | %(e) | 1.59 | % | ||||||||||||||
Portfolio turnover rate(g) | 19 | % | 209 | % | 56 | % | 132 | % | 110 | % | 42 | % | 98 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Moderate was known as the RiverFront Moderate Growth & Income Fund. |
(b) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(c) | Calculated using the average shares method. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(e) | Annualized. |
(f) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
150| April 30, 2019
RiverFront Asset Allocation Income & Growth – Investor Class |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a)(b) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(c) | |||||||||||||||||||
Net asset value, beginning of period | $ | 10.67 | $ | 11.25 | $ | 10.53 | $ | 10.46 | $ | 10.86 | $ | 10.83 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income(d) | 0.12 | 0.22 | 0.16 | 0.18 | 0.18 | 0.07 | ||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.40 | (0.41 | ) | 0.71 | 0.07 | (0.14 | ) | 0.04 | ||||||||||||||||
Total from investment operations | 0.52 | (0.19 | ) | 0.87 | 0.25 | 0.04 | 0.11 | |||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||
From net investment income | (0.10 | ) | (0.21 | ) | (0.15 | ) | (0.16 | ) | (0.15 | ) | (0.08 | ) | ||||||||||||
From net realized gains | (0.70 | ) | (0.18 | ) | – | (0.02 | ) | (0.29 | ) | – | ||||||||||||||
Total distributions | (0.80 | ) | (0.39 | ) | (0.15 | ) | (0.18 | ) | (0.44 | ) | (0.08 | ) | ||||||||||||
Net increase/(decrease) in net asset value | (0.28 | ) | (0.58 | ) | 0.72 | 0.07 | (0.40 | ) | 0.03 | |||||||||||||||
Net asset value, end of period | $ | 10.39 | $ | 10.67 | $ | 11.25 | $ | 10.53 | $ | 10.46 | $ | 10.86 | ||||||||||||
TOTAL RETURN(e) | 5.41 | % | (1.79 | )% | 8.33 | % | 2.47 | % | 0.40 | % | 0.98 | % | ||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 147 | $ | 170 | $ | 1,133 | $ | 1,037 | $ | 1,038 | $ | 1,089 | ||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | %(f) | 1.36 | % | 1.98 | % | 1.84 | % | 2.06 | % | 2.39 | %(f) | ||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | %(f) | 0.78 | %(g) | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | %(f) | ||||||||||||
Ratio of net investment income to average net assets | 2.35 | %(f) | 1.98 | % | 1.44 | % | 1.68 | % | 1.74 | % | 1.22 | %(f) | ||||||||||||
Portfolio turnover rate(h) | 20 | % | 219 | % | 63 | % | 137 | % | 186 | % | 34 | % |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Prior to February 28, 2018, the RiverFront Asset Allocation Income & Growth was known as the RiverFront Conservative Income Builder Fund. |
(c) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(d) | Calculated using the average shares method. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(f) | Annualized. |
(g) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(h) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
151| April 30, 2019
RiverFront Asset Allocation Income & Growth – Class A |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period June 12, 2018 (Commencement of Operations) to October 31, 2018 | |||||||
Net asset value, beginning of period | $ | 10.66 | $ | 11.12 | ||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.12 | 0.11 | ||||||
Net realized and unrealized gain/(loss) | 0.40 | (0.45 | ) | |||||
Total from investment operations | 0.52 | (0.34 | ) | |||||
DISTRIBUTIONS: | ||||||||
From net investment income | (0.10 | ) | (0.12 | ) | ||||
From net realized gains | (0.70 | ) | – | |||||
Total distributions | (0.80 | ) | (0.12 | ) | ||||
Net (decrease) in net asset value | (0.28 | ) | (0.46 | ) | ||||
Net asset value, end of period | $ | 10.38 | $ | 10.66 | ||||
TOTAL RETURN(b) | 5.45 | % | (3.10 | )% | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000s) | $ | 47 | $ | 10 | ||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | %(c) | 0.50 | %(c) | ||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | %(c) | 0.50 | %(c) | ||||
Ratio of net investment income to average net assets | 2.26 | %(c) | 2.64 | %(c) | ||||
Portfolio turnover rate(d) | 20 | % | 219 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
152| April 30, 2019
RiverFront Asset Allocation Income & Growth – Class C |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(b) | |||||||||||||||||||
Net asset value, beginning of period | $ | 10.53 | $ | 11.12 | $ | 10.44 | $ | 10.37 | $ | 10.81 | $ | 10.77 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income(c) | 0.08 | 0.14 | 0.08 | 0.10 | 0.09 | 0.03 | ||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.39 | (0.41 | ) | 0.69 | 0.08 | (0.13 | ) | 0.04 | ||||||||||||||||
Total from investment operations | 0.47 | (0.27 | ) | 0.77 | 0.18 | (0.04 | ) | 0.07 | ||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||
From net investment income | (0.07 | ) | (0.14 | ) | (0.09 | ) | (0.09 | ) | (0.11 | ) | (0.03 | ) | ||||||||||||
From net realized gains | (0.70 | ) | (0.18 | ) | – | (0.02 | ) | (0.29 | ) | – | ||||||||||||||
Total distributions | (0.77 | ) | (0.33 | ) | (0.09 | ) | (0.11 | ) | (0.40 | ) | (0.03 | ) | ||||||||||||
Net increase/(decrease) in net asset value | (0.30 | ) | (0.59 | ) | 0.68 | 0.07 | (0.44 | ) | 0.04 | |||||||||||||||
Net asset value, end of period | $ | 10.23 | $ | 10.53 | $ | 11.12 | $ | 10.44 | $ | 10.37 | $ | 10.81 | ||||||||||||
TOTAL RETURN(d) | 4.95 | % | (2.48 | )% | 7.42 | % | 1.74 | % | (0.39 | )% | 0.68 | % | ||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 5,176 | $ | 5,689 | $ | 7,234 | $ | 11,550 | $ | 8,610 | $ | 5,021 | ||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.25 | %(e) | 1.95 | % | 2.68 | % | 2.60 | % | 2.81 | % | 3.14 | %(e) | ||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.25 | %(e) | 1.48 | %(f) | 1.90 | % | 1.90 | % | 1.90 | % | 1.90 | %(e) | ||||||||||||
Ratio of net investment income to average net assets | 1.55 | %(e) | 1.27 | % | 0.77 | % | 0.92 | % | 0.88 | % | 0.47 | %(e) | ||||||||||||
Portfolio turnover rate(g) | 20 | % | 219 | % | 63 | % | 137 | % | 186 | % | 34 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Income & Growth was known as the RiverFront Conservative Income Builder Fund. |
(b) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(c) | Calculated using the average shares method. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(e) | Annualized. |
(f) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
153| April 30, 2019
RiverFront Asset Allocation Income & Growth – Class I |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | For the Year Ended October 31, 2015 | For the Fiscal Period Ended October 31, 2014(b) | |||||||||||||||||||
Net asset value, beginning of period | $ | 10.50 | $ | 11.08 | $ | 10.36 | $ | 10.30 | $ | 10.70 | $ | 10.66 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income(c) | 0.13 | 0.25 | 0.18 | 0.19 | 0.19 | 0.07 | ||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.39 | (0.41 | ) | 0.70 | 0.08 | (0.13 | ) | 0.06 | ||||||||||||||||
Total from investment operations | 0.52 | (0.16 | ) | 0.88 | 0.27 | 0.06 | 0.13 | |||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||
From net investment income | (0.11 | ) | (0.24 | ) | (0.16 | ) | (0.19 | ) | (0.17 | ) | (0.09 | ) | ||||||||||||
From net realized gains | (0.70 | ) | (0.18 | ) | – | (0.02 | ) | (0.29 | ) | – | ||||||||||||||
Total distributions | (0.81 | ) | (0.43 | ) | (0.16 | ) | (0.21 | ) | (0.46 | ) | (0.09 | ) | ||||||||||||
Net increase/(decrease) in net asset value | (0.29 | ) | (0.58 | ) | 0.72 | 0.06 | (0.40 | ) | 0.04 | |||||||||||||||
Net asset value, end of period | $ | 10.21 | $ | 10.50 | $ | 11.08 | $ | 10.36 | $ | 10.30 | $ | 10.70 | ||||||||||||
TOTAL RETURN(d) | 5.52 | % | (1.50 | )% | 8.60 | % | 2.66 | % | 0.60 | % | 1.19 | % | ||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 3,178 | $ | 3,850 | $ | 2,783 | $ | 2,264 | $ | 2,171 | $ | 2,830 | ||||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.25 | %(e) | 0.88 | % | 1.71 | % | 1.60 | % | 1.80 | % | 2.12 | %(e) | ||||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.25 | %(e) | 0.45 | %(f) | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | %(e) | ||||||||||||
Ratio of net investment income to average net assets | 2.51 | %(e) | 2.27 | % | 1.68 | % | 1.90 | % | 1.84 | % | 1.34 | %(e) | ||||||||||||
Portfolio turnover rate(g) | 20 | % | 219 | % | 63 | % | 137 | % | 186 | % | 34 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Income & Growth was known as the RiverFront Conservative Income Builder Fund. |
(b) | Effective May 1, 2014, the Board approved changing the fiscal year-end of the Funds from April 30 to October 31. |
(c) | Calculated using the average shares method. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(e) | Annualized. |
(f) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
154| April 30, 2019
Notes to Financial Statements |
April 30, 2019 (Unaudited) |
1. ORGANIZATION
Financial Investors Trust (the “Trust”), a Delaware statutory trust, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (“1940 Act”). The Trust consists of multiple separate portfolios or series. This annual report includes the financial statements and financial highlights of the following 12 funds: ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund, ALPS | Kotak India Growth Fund, ALPS | Red Rocks Listed Private Equity Fund, ALPS | WMC Research Value Fund, Clough China Fund, RiverFront Asset Allocation Aggressive, RiverFront Asset Allocation Growth, RiverFront Asset Allocation Growth & Income, RiverFront Asset Allocation Moderate, RiverFront Asset Allocation Income & Growth, ALPS | Smith Total Return Bond Fund and ALPS | Smith Short Duration Bond Fund (each, a “Fund” and collectively, the “Funds”).
The ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund seeks to maximize real returns (returns after inflation), consistent with prudent investment management. ALPS | Kotak India Growth Fund’s investment goal is long-term capital appreciation. The ALPS | Red Rocks Listed Private Equity Fund seeks to maximize total return, which consists of appreciation on its investments and a variable income stream. ALPS | WMC Research Value Fund seeks long-term capital appreciation: dividend income may be a factor in portfolio selection but is secondary to the Fund’s principal objective. The Clough China Fund seeks to provide investors with long-term capital appreciation. Effective February 28, 2018, RiverFront Asset Allocation Aggressive seeks to achieve long-term capital appreciation. RiverFront Asset Allocation Growth seeks to provide high total investment return. RiverFront Asset Allocation Growth & Income seeks to achieve long-term growth and income. RiverFront Asset Allocation Moderate has two primary investment objectives- it seeks (1) to provide a level of current income that exceeds the average yield on U.S. stocks, and (2) growth of capital. RiverFront Asset Allocation Income & Growth seeks to provide current income and potential for that income to grow over time. The ALPS | Smith Total Return Bond Fund capital seeks to obtain maximum total return, consistent with preservation of capital. The ALPS | Smith Short Duration Bond Fund seeks as high a level of current income as is consistent with preservation of capital.
The classes of each Fund differ principally in the applicable distribution and shareholder service fees. Shareholders of each class also bear certain expenses that pertain to that particular class. All shareholders bear the common expenses of the Fund and earn income and realized gains/losses from the Fund pro rata based on the average daily net assets of each class, without distinction between share classes. Dividends to shareholders are determined separately for each class based on income and expenses allocable to each class. Realized gain distributions to shareholders are allocated to each class pro rata based on the shares outstanding of each class on the date of distribution. Differences in per share dividend rates generally result from differences in separate class expenses, including distribution and shareholder service fees, if applicable.
Basis of Consolidation for the ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund
CoreCommodity Management Cayman Commodity Fund Ltd. (the “Subsidiary”), a Cayman Islands exempted company, was incorporated on April 23, 2010 and is a wholly owned subsidiary of the ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund (the “CoreCommodity Fund”). The Subsidiary acts as an investment vehicle for the CoreCommodity Fund in order to effect certain commodity-related investments on behalf of the CoreCommodity Fund. CoreCommodity Fund is the sole shareholder of the Subsidiary pursuant to a subscription agreement dated as of June 14, 2010, and it is intended that the CoreCommodity Fund will remain the sole shareholder and will continue to wholly own and control the Subsidiary. Under the Articles of Association of the Subsidiary, shares issued by the Subsidiary confer upon a shareholder the right to vote at general meetings of the Subsidiary and certain rights in connection with any winding-up or repayment of capital, as well as the right to participate in the profits or assets of the Subsidiary. The CoreCommodity Fund may invest up to 25% of its total assets in shares of the Subsidiary. As a wholly owned subsidiary of the CoreCommodity Fund, the financial statements of the Subsidiary are included in the consolidated financial statements and financial highlights of the CoreCommodity Fund. All investments held by the Subsidiary are disclosed in the accounts of the CoreCommodity Fund. As of April 30, 2019, net assets of the CoreCommodity Fund were $643,029,238 of which $111,888,698 or 17.40%, represented the CoreCommodity Fund’s ownership of all issued shares and voting rights of the Subsidiary.
Basis of Consolidation for the ALPS | Kotak India Growth Fund
ALPS | Kotak India Growth Fund, (the “Kotak Fund”) invests in the equity securities of Indian companies through its wholly owned, collective investment vehicle, the India Premier Equity Portfolio (the “Portfolio”). The Portfolio is registered with and regulated by the Mauritius Financial Services Commission. The Portfolio was formed for the purpose of facilitating the Kotak Fund’s purchase of securities of a wide selection of Indian companies, consistent with the Kotak Fund’s investment strategies. The Portfolio is a private company limited by shares incorporated under the Mauritius Companies Act 2001. As a wholly owned subsidiary of the Kotak Fund, financial statements of the Portfolio are included in the consolidated financial statements and financial highlights of the Kotak Fund. All investments held by the Portfolio are disclosed in the accounts of the Kotak Fund. As of April 30, 2019, net assets of the Kotak Fund were $27,430,092 of which $11,231,907 or 40.95%, represented the Kotak Fund’s ownership of all issued shares and voting rights of the Portfolio.
The Portfolio established residency in Mauritius allowing the Kotak Fund to receive the beneficial tax treatment under the Treaty between India and Mauritius. However, due to recently enacted legislation the benefits of the Treaty have been reduced and some gains derived by the Portfolio due to the sale of securities will be subject to taxation in India. On April 1, 2017, the General Anti-Avoidance Rules (“GAAR”) which contain treaty
155| April 30, 2019
Notes to Financial Statements |
April 30, 2019 (Unaudited) |
override provisions were enacted. Capital gains on sale of shares acquired on or after April 1, 2017, are taxable in India as per the amended India – Mauritius treaty. The benefit of a lower rate of taxation (50% of the applicable tax rate in India) is provided for the gains on shares arising during the period from April 1, 2017 to March 31, 2019 subject to compliance with the Limitation of Benefit clause.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. Each Fund is considered an investment company for financial reporting purposes, and follows accounting policies in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), including policies specific to investment companies. The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Funds and subsidiaries, as applicable, in preparation of their financial statements. The Funds are considered investment companies under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board Accounting Standards Codification Topic 946.
Investment Valuation:The Funds generally value their securities based on market prices determined at the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern Time, on each day the NYSE is open for trading. For equity securities and mutual funds that are traded on an exchange, the market price is usually the closing sale or official closing price on that exchange.
The market price for debt obligations is generally the price supplied by an independent third-party pricing service approved by the Board of Trustees (the “Board”), which may use a matrix, formula or other objective method that takes into consideration quotations from dealers, market transactions in comparable investments, market indices and yield curves. If vendors are unable to supply a price, or if the price supplied is deemed to be unreliable, the market price may be determined using quotations received from one or more brokers-dealers that make a market in the security. Investments in non-exchange traded funds are fair valued at their respective net asset values. Bonds may be purchased and held as odd lots. Pricing services value such securities based on bid prices for round lots; round lot prices may reflect more favorable pricing than odd lot holdings. A Fund may, in consideration of the foregoing, purchase securities suitable for its investment strategies in odd lots. Special valuation considerations may apply with respect to a Fund’s odd-lot positions, as the Fund may receive different prices when it sells such positions than it would receive for sales of institutional round lot positions. Pricing vendors generally value securities assuming orderly transactions of institutional round lot sizes, but a Fund may hold or transact in such securities in smaller, odd lot sizes. The ALPS | Smith Total Return Bond Fund and the ALPS | Smith Short Duration Bond Fund (the “Smith Funds”) have odd lot pricing policies it employs to value odd lot securities.
Futures contracts that are listed or traded on a national securities exchange, commodities exchange, contract market or comparable over the counter market, and that are freely transferable, are valued at their closing settlement price on the exchange on which they are primarily traded or based upon the current settlement price for a like instrument acquired on the day on which the instrument is being valued. A settlement price may not be used if the market makes a limit move with respect to a particular commodity. Over-the-counter swap contracts are valued based on quotes received from independent pricing services or one or more dealers that make markets in such investments.
Option contracts are valued using the National Best Bid and Offer price (“NBBO”). In the event there is no NBBO price available, option contracts are valued at the mean between the last bid and ask.
Equity securities that are primarily traded on foreign securities exchanges are valued at the closing values of such securities on their respective foreign exchanges, except when an event occurs subsequent to the close of the foreign exchange and the close of the NYSE that was likely to have changed such value. In such an event, the fair value of those securities are determined in good faith through consideration of other factors in accordance with procedures established by and under the general supervision of the Board. The Funds will use a fair valuation model provided by an independent pricing service, which is intended to reflect fair value when a security’s value or a meaningful portion of the Fund’s portfolio is believed to have been materially affected by an valuation event that has occurred between the close of the exchange or market on which the security is traded and the close of the regular trading day on the NYSE.
Forward currency exchange contracts have a value determined by the current foreign currency exchange forward rates. The foreign currency exchange forward rates are calculated using an automated system that estimates rates on the basis of the current day foreign currency exchange rates and forward foreign currency exchange rates supplied by a pricing service. Foreign exchange rates and forward foreign currency exchange rates may generally be obtained at the close of the NYSE, normally 4:00 p.m. Eastern Time.
When such prices or quotations are not available, or when the Fair Value Committee appointed by the Board believes that they are unreliable, securities may be priced using fair value procedures approved by the Board. The fair valuation policies and procedures (“FV Procedures”) have been adopted by the Board for the fair valuation of portfolio assets held by the Fund(s) in the event that (1) market quotations for the current price of a
156| April 30, 2019
Notes to Financial Statements |
April 30, 2019 (Unaudited) |
portfolio security or asset are not readily available, or (2) available market quotations that would otherwise be used to value a portfolio security or asset in accordance with the Fund’s Pricing Procedures appear to be unreliable. The Pricing Procedures reflect certain pricing methodologies (or “logics”) that are not “readily available market quotations” and thus are viewed and treated as fair valuations. The Fair Value Committee routinely meets to discuss fair valuations of portfolio securities and other instruments held by the Fund(s).
Fair Value Measurements:The Funds disclose the classification of their fair value measurements following a three-tier hierarchy based on the inputs used to measure fair value. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.
Various inputs are used in determining the value of each Fund’s investments as of the end of the reporting period. When inputs used fall into different levels of the fair value hierarchy, the level in the hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments. These inputs are categorized in the following hierarchy under applicable financial accounting standards:
Level 1 – | Unadjusted quoted prices in active markets for identical investments, unrestricted assets or liabilities that a Fund has the ability to access at the measurement date; |
Level 2 – | Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and |
Level 3 – | Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date. |
The following is a summary of each Fund’s investments/financial instruments in the fair value hierarchy as of April 30, 2019:
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | ||||||||||||||||
Common Stocks(a) | $ | 195,002,380 | $ | – | $ | – | $ | 195,002,380 | ||||||||
Master Limited Partnerships(a) | 1,893,369 | – | – | 1,893,369 | ||||||||||||
Government Bonds | – | 412,021,449 | – | 412,021,449 | ||||||||||||
Total | $ | 196,895,749 | $ | 412,021,449 | $ | – | $ | 608,917,198 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 2,082,165 | $ | – | $ | – | $ | 2,082,165 | ||||||||
Total Return Swap Contracts | – | 372 | – | 372 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (2,819,495 | ) | – | – | (2,819,495 | ) | ||||||||||
Total | $ | (737,330 | ) | $ | 372 | $ | – | $ | (736,958 | ) |
157| April 30, 2019
Notes to Financial Statements |
April 30, 2019 (Unaudited) |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
ALPS | Kotak India Growth Fund | ||||||||||||||||
Common Stocks | ||||||||||||||||
Consumer Discretionary | $ | – | $ | 2,256,229 | $ | – | $ | 2,256,229 | ||||||||
Consumer Staples | – | 2,152,342 | – | 2,152,342 | ||||||||||||
Energy | – | 1,990,034 | – | 1,990,034 | ||||||||||||
Financials | 2,574,734 | 6,509,300 | – | 9,084,034 | ||||||||||||
Health Care | 137,052 | 1,193,807 | – | 1,330,859 | ||||||||||||
Industrials | 163,978 | 2,107,458 | – | 2,271,436 | ||||||||||||
Information Technology | 1,102,792 | 2,471,482 | – | 3,574,274 | ||||||||||||
Materials | 503,669 | 2,294,775 | – | 2,798,444 | ||||||||||||
Real Estate | 208,156 | 235,344 | – | 443,500 | ||||||||||||
Total | $ | 4,690,381 | $ | 21,210,771 | $ | – | $ | 25,901,152 |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
ALPS | Smith Short Duration Bond Fund | ||||||||||||||||
Collateralized Mortgage Obligations | $ | – | $ | 1,186,031 | $ | – | $ | 1,186,031 | ||||||||
Commercial Mortgage-Backed Securities | – | 153,415 | – | 153,415 | ||||||||||||
Mortgage-Backed Securities | – | 43,509 | – | 43,509 | ||||||||||||
Corporate Bonds | – | 19,449,781 | – | 19,449,781 | ||||||||||||
Government Bonds | – | 14,191,069 | – | 14,191,069 | ||||||||||||
Municipal Bonds | – | 331,659 | – | 331,659 | ||||||||||||
Short Term Investments | 129,252 | – | – | 129,252 | ||||||||||||
Total | $ | 129,252 | $ | 35,355,464 | $ | – | $ | 35,484,716 |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
ALPS | Smith Total Return Bond Fund | ||||||||||||||||
Collateralized Mortgage Obligations | $ | – | $ | 12,401,585 | $ | – | $ | 12,401,585 | ||||||||
Corporate Bonds | – | 27,662,908 | – | 27,662,908 | ||||||||||||
Government Bonds | – | 17,730,769 | – | 17,730,769 | ||||||||||||
Short Term Investments | 1,107,217 | – | – | 1,107,217 | ||||||||||||
Total | $ | 1,107,217 | $ | 57,795,262 | $ | – | $ | 58,902,479 |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
ALPS | Red Rocks Listed Private Equity Fund | ||||||||||||||||
Closed-End Funds | $ | 20,652,808 | $ | 15,086,103 | $ | – | $ | 35,738,911 | ||||||||
Common Stocks(a) | 101,444,834 | 57,733,619 | – | 159,178,453 | ||||||||||||
Short-Term Investments | 8,066,856 | – | – | 8,066,856 | ||||||||||||
Total | $ | 130,164,498 | $ | 72,819,722 | $ | – | $ | 202,984,220 |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
ALPS | WMC Research Value Fund | ||||||||||||||||
Common Stocks(a) | $ | 85,798,651 | $ | – | $ | – | $ | 85,798,651 | ||||||||
Exchange Traded Funds | 471,370 | – | – | 471,370 | ||||||||||||
Short-Term Investments | 147,399 | – | – | 147,399 | ||||||||||||
Total | $ | 86,417,420 | $ | – | $ | – | $ | 86,417,420 |
158| April 30, 2019
Notes to Financial Statements |
April 30, 2019 (Unaudited) |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
Clough China Fund | ||||||||||||||||
Closed-End Funds | $ | 2,156,154 | $ | – | $ | – | $ | 2,156,154 | ||||||||
Common Stocks | ||||||||||||||||
Communications | 96,151 | 1,142,656 | – | 1,238,807 | ||||||||||||
Consumer Discretionary | 6,851,315 | 4,288,109 | – | 11,139,424 | ||||||||||||
Energy | – | 2,214,111 | – | 2,214,111 | ||||||||||||
Financials | – | 10,457,096 | – | 10,457,096 | ||||||||||||
Health Care | 347,844 | – | – | 347,844 | ||||||||||||
Industrials | – | 1,823,686 | – | 1,823,686 | ||||||||||||
Materials | – | 849,175 | – | 849,175 | ||||||||||||
Technology | 5,299,061 | 4,593,610 | – | 9,892,671 | ||||||||||||
Short Term Security | 174,326 | – | – | 174,326 | ||||||||||||
Total | $ | 14,924,851 | $ | 25,368,443 | $ | – | $ | 40,293,294 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets: | ||||||||||||||||
Total Return Swap Contracts | $ | – | $ | 486,650 | $ | – | $ | 486,650 | ||||||||
Liabilities: | ||||||||||||||||
Total Return Swap Contracts | – | (129,087 | ) | – | (129,087 | ) | ||||||||||
Total | $ | – | $ | 357,563 | $ | – | $ | 357,563 |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
RiverFront Asset Allocation Aggressive | ||||||||||||||||
Exchange Traded Funds | $ | 40,814,225 | $ | – | $ | – | $ | 40,814,225 | ||||||||
Short-Term Investments | 571,905 | – | – | 571,905 | ||||||||||||
Total | $ | 41,386,130 | $ | – | $ | – | $ | 41,386,130 |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
RiverFront Asset Allocation Growth | ||||||||||||||||
Exchange Traded Funds | $ | 24,315,165 | $ | – | $ | – | $ | 24,315,165 | ||||||||
Short-Term Investments | 411,975 | – | – | 411,975 | ||||||||||||
Total | $ | 24,727,140 | $ | – | $ | – | $ | 24,727,140 |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
RiverFront Asset Allocation Growth & Income | ||||||||||||||||
Exchange Traded Funds | $ | 71,397,417 | $ | – | $ | – | $ | 71,397,417 | ||||||||
Short-Term Investments | 1,535,721 | – | – | 1,535,721 | ||||||||||||
Total | $ | 72,933,138 | $ | – | $ | – | $ | 72,933,138 |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
RiverFront Asset Allocation Moderate | ||||||||||||||||
Exchange Traded Funds | $ | 63,024,380 | $ | – | $ | – | $ | 63,024,380 | ||||||||
Short-Term Investments | 866,745 | – | – | 866,745 | ||||||||||||
Total | $ | 63,891,125 | $ | – | $ | – | $ | 63,891,125 |
159| April 30, 2019
Notes to Financial Statements |
April 30, 2019 (Unaudited) |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
RiverFront Asset Allocation Income & Growth | ||||||||||||||||
Exchange Traded Funds | $ | 8,399,263 | $ | – | $ | – | $ | 8,399,263 | ||||||||
Short-Term Investments | 155,842 | – | – | 155,842 | ||||||||||||
Total | $ | 8,555,105 | $ | – | $ | – | $ | 8,555,105 |
(a) | For detailed descriptions of country, sector and/or industry, see the accompanying Statement of Investments or Consolidated Statement of Investments. |
Fund and Class Expenses: Some expenses of the Trust can be directly attributed to a Fund or a specific share class of a Fund. Expenses which cannot be directly attributed are apportioned among all Funds in the Trust based on average net assets of each share class within a Fund.
Federal Income Taxes:The Funds comply with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”) applicable to regulated investment companies and intend to distribute substantially all of their net taxable income and net capital gains, if any, each year. The Funds are not subject to income taxes to the extent such distributions are made.
The Funds file U.S. federal, state, and local tax returns as required. The Funds’ tax returns are subject to examination by the relevant tax authorities until expiration of the applicable statute of limitations which is generally three years after the filing of the tax return, but may extend to four years in certain jurisdictions. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.
Distributions to Shareholders:Each Fund, except the RiverFront Asset Allocation Income & Growth, RiverFront Asset Allocation Growth & Income,RiverFront Asset Allocation Moderate, ALPS | Smith Total Return Bond Fund and ALPS | Smith Short Duration Bond Fund, normally pays dividends and distributes capital gains, if any, on an annual basis. RiverFront Asset Allocation Income & Growth, RiverFront Asset Allocation Growth & Income and RiverFront Asset Allocation Moderate normally pay dividends, if any, on a quarterly basis and distribute capital gains annually. ALPS | Smith Total Return Bond Fund and ALPS | Smith Short Duration Bond Fund declare and distribute dividends, if any, on a monthly basis and capital gains, if any, on at least an annual basis. Income dividend distributions are derived from interest and other income a Fund receives from its investments, including distributions of short-term capital gains. Capital gain distributions are derived from gains realized when a Fund sells a security it has owned for more than a year or from long-term capital gain distributions from underlying investments. Each Fund may make additional distributions and dividends at other times if its portfolio manager or managers believe doing so may be necessary for the Fund to avoid or reduce taxes.
Commodity-Linked Notes:The ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund may invest in commodity-linked notes which are derivative instruments that have characteristics of a debt security and of a commodity-linked derivative. A commodity-linked note typically provides for interest payments and a principal payment at maturity linked to the price movement of the underlying commodity, commodity index or commodity futures or option contract. Commodity-linked notes may be principal protected, partially protected, or offer no principal protection. The value of these notes will rise and fall in response to changes in the underlying commodity or related index or investment. These notes are often leveraged, increasing the volatility of each note’s value relative to the change in the underlying linked index. Commodity index-linked investments may be more volatile and less liquid than the underlying index and their value may be affected by the performance of the commodities as well as other factors, including liquidity, quality, maturity and other economic variables. Commodity-linked notes are typically issued by a bank or other financial institution and are sometimes referred to as structured notes because the terms of the notes may be structured by the issuer and the purchaser of the notes to accommodate the specific investment requirements of the purchaser.
Exchange Traded Funds (ETFs):Each Fund may invest in shares of ETFs and other similar instruments if the investment manager chooses to adjust a Fund’s exposure to the general market or industry sectors and to manage a Fund’s risk exposure. ETFs differ from traditional index funds in that their shares are listed on a securities exchange and can be traded intraday. ETF shares are shares of exchange traded investment companies that are registered under the 1940 Act and hold a portfolio of common stocks designed to track the performance of a particular index. Limitations of the 1940 Act may prohibit a Fund from acquiring more than 3% of the outstanding shares of certain ETFs. Instruments that are similar to ETFs represent beneficial ownership interests in specific “baskets” of stocks of companies within a particular industry sector or group. These securities may also be exchange traded, but unlike ETFs, the issuers of these securities are not registered as investment companies.
The portfolio manager may decide to purchase or sell short ETF shares or options on ETF shares for the same reasons it would purchase or sell (and as an alternative to purchasing or selling) futures contracts – to obtain exposure to the stock market or a particular segment of the stock market, or to hedge a Fund’s portfolio against such exposures. Depending on the market, the holding period and other factors, the use of ETF shares and options thereon can be less costly than the use of index options or stock index futures. In addition, ETF shares and options thereon can typically be
160| April 30, 2019
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purchased in smaller amounts than are available for futures contracts and can offer exposure to market sectors and styles for which there is no suitable or liquid futures contract.
Investment Transactions and Investment Income:Investment transactions are accounted for on the date the investments are purchased or sold (trade date basis). Net realized gains and losses from investment transactions are reported on an identified cost basis. Interest income, which includes accretion of discounts and amortization of premiums, is accrued and recorded as earned. Dividend income is recognized on the ex-dividend date or for certain foreign securities, as soon as information is available to each Fund.
Foreign Securities:Each Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible reevaluation of currencies, the inability to repatriate foreign currency, less complete financial information about companies and possible future adverse political and economic developments.
Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. issuers.
Foreign Currency Translation:The books and records of the Funds are maintained in U.S. dollars. Investment valuations and other assets and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based upon current exchange rates. The portion of realized and unrealized gains or losses on investments due to fluctuations in foreign currency exchange rates is not separately disclosed and is included in realized and unrealized gains or losses on investments, when applicable.
Foreign Currency Spot Contracts:The Funds may enter into foreign currency spot contracts to facilitate transactions in foreign securities or to convert foreign currency receipts into U.S. dollars. A foreign currency spot contract is an agreement between two parties to buy and sell currencies at the current market rate, for settlement generally within two business days. The U.S. dollar value of the contracts is determined using current currency exchange rates supplied by a pricing service. The contract is marked-to-market daily for settlements beyond one day and any change in market value is recorded as an unrealized gain or loss. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value on the open and close date. Losses may arise from changes in the value of the foreign currency, or if the counterparties do not perform under the contract’s terms. The maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.
Real Estate Investment Trusts (“REITs”):The Funds may invest a portion of their assets in REITs and are subject to certain risks associated with direct investment in REITs. REITs may be affected by changes in the value of their underlying properties and by defaults by borrowers or tenants. REITs depend generally on their ability to generate cash flow to make distributions to shareowners, and certain REITs have self-liquidation provisions by which mortgages held may be paid in full and distributions of capital returns may be made at any time. In addition, the performance of a REIT may be affected by its failure to qualify for tax-free pass-through of income under the Code, or its failure to maintain exemption from registration under the 1940 Act. Distributions that the Fund receives from REITs can be classified as ordinary income, capital gain income or return of capital by the REITs that make these distributions to the Fund. However, it is not possible for the Fund to characterize distributions received from REITs during interim periods because the REIT issuers do not report their tax characterizations until subsequent to year end. During interim periods, the REIT distributions are accounted for as ordinary income until the re characterizations are made subsequent to year end.
Treasury Inflation Protected-Securities (“TIPS”):The Funds may invest in TIPS, including structured bonds in which the principal amount is adjusted daily to keep pace with inflation, as measured by the U.S. Consumer Pricing Index for Urban Consumers. The adjustments to principal due to inflation/deflation are reflected as increases/decreases to interest income with a corresponding adjustment to cost. Such adjustments may have a significant impact on a Fund’s distributions and may result in a return of capital to shareholders. The repayment of the original bond principal upon maturity is guaranteed by the full faith and credit of the U.S. Government.
Loan Participations and Assignments:Certain Funds may invest in loan participations and assignments. The Fund considers loan participations and assignments to be investments in debt securities. Loan participations typically will result in the Fund having a contractual relationship only with the lender, not with the borrower. The Fund will have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the participation and only upon receipt by the lender of the payments from the borrower. Under a loan participation, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower, and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation. As a result, the Fund will assume the credit risk of both the borrower and the lender that is selling the participation. In the event of the insolvency of the lender selling a participation, the Fund may be treated as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower. When the Fund purchases assignments of loans from lenders, the Fund will acquire direct rights against the borrower on the loan, except that under certain circumstances such rights may be more limited than those held by the assigning lender.
161| April 30, 2019
Notes to Financial Statements |
April 30, 2019 (Unaudited) |
Master Limited Partnerships:Certain Funds may invest in MLPs, which are publicly traded partnerships engaged in the transportation, storage and processing of minerals and natural resources. By confining their operations to these specific activities, their interests, or units, are able to trade on public securities exchanges exactly like the shares of a corporation, without entity level taxation. To qualify as a MLP and to not be taxed as a corporation, a partnership must receive at least 90% of its income from qualifying sources as set forth in Section 7704(d) of the Code. These qualifying sources include natural resource based activities such as the processing, transportation and storage of mineral or natural resources. MLPs generally have two classes of owners, the general partner and limited partners. The general partner of an MLP is typically owned by a major energy company, an investment fund, the direct management of the MLP, or is an entity owned by one or more of such parties. The general partner may be structured as a private or publicly traded corporation or other entity. The general partner typically controls the operations and management of the MLP through an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units. Limited partners typically own the remainder of the partnership, through ownership of common units, and have a limited role in the partnership’s operations and management. MLPs are typically structured such that common units and general partner interests have first priority to receive quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”). Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid. Once common and general partner interests have been paid, subordinated units receive distributions of up to the MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD is paid to both common and subordinated units and is distributed to both common and subordinated units generally on a pro rata basis. The general partner is also eligible to receive incentive distributions if the general partner operates the business in a manner which results in distributions paid per common unit surpassing specified target levels. As the general partner increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of the incremental cash distributions.
3. DERIVATIVE INSTRUMENTS
As a part of their investment strategy, the Funds are permitted to enter in various types of derivatives contracts. In doing so, the Funds employ strategies in differing combinations to permit them to increase, decrease, or change the level or types of exposure to market factors. Central to those strategies are features inherent in derivatives that make them more attractive for this purpose than equity or debt securities; they require little or no initial cash investment, they focus exposure on only certain selected risk factors, and they may not require the ultimate receipt or delivery of the underlying security (or securities) to the contract. This may allow the Funds to pursue their objectives more quickly and efficiently than if they were to make direct purchases or sales of securities capable of affecting a similar response to market factors.
Cash collateral is being pledged to cover derivative obligations of the Funds and cash collateral received from the counterparty, if any, is reported separately on the Statements of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Funds, if any, is noted in the Statements of Investments.
Risk of Investing in Derivatives:The Funds’ use of derivatives can result in losses due to unanticipated changes in the market risk factors and the overall market. In instances where the Funds are using derivatives to decrease, or hedge, exposures to market risk factors for securities held by the Funds, there are also risks that those derivatives may not perform as expected resulting in losses for the combined or hedged positions.
Derivatives may have little or no initial cash investment relative to their market value exposure and therefore can produce significant gains or losses in excess of their cost. This use of embedded leverage allows the Fund to increase its market value exposure relative to its net assets and can substantially increase the volatility of the Funds’ performance.
Additional associated risks from investing in derivatives also exist and potentially could have significant effects on the valuation of the derivative and the Funds. Typically, the associated risks are not the risks that the Funds are attempting to increase or decrease exposure to, per their investment objectives, but are the additional risks from investing in derivatives.
Examples of these associated risks are liquidity risk, which is the risk that the Funds will not be able to sell or close out the derivative in a timely manner, and counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Funds. In addition, use of derivatives may increase or decrease exposure to the following risk factors:
Equity Risk:Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. Associated risks can be different for each type of derivative and are discussed by each derivative type in the notes that follow.
Commodity Risk:Exposure to the commodities markets may subject the Funds to greater volatility than investments in traditional securities. Prices of various commodities may also be affected by factors, such as drought, floods, weather, livestock disease, embargoes, tariffs and other regulatory developments, which are unpredictable. The prices of commodities can also fluctuate widely due to supply and demand disruptions in major producing or consuming regions.
162| April 30, 2019
Notes to Financial Statements |
April 30, 2019 (Unaudited) |
Foreign Currency Risk:Currency trading involves significant risks, including market risk, interest rate risk, country risk, counterparty credit risk and short sale risk. Market risk results from the price movement of foreign currency values in response to shifting market supply and demand. Interest rate risk arises whenever a country changes its stated interest rate target associated with its currency. Country risk arises because virtually every country has interfered with international transactions in its currency.
Interest Rate Risk:Interest rate risk is the risk that fixed income securities will decline in value because of changes in interest rates. As nominal interest rates rise, the value of fixed income securities held by the Funds are likely to decrease. Securities with longer durations tend to be more sensitive to changes in interest rates, and are usually more volatile than securities.
Swap Contracts:Each Fund may enter into swap transactions for hedging purposes or to seek to increase total return. At the present time, the CoreCommodity Fund and Clough China Fund primarily enter into swap transactions for the purpose of increasing total return. Swap agreements may be executed in a multilateral or other trade facility program, such as a registered exchange (“centrally cleared swaps”) or may be privately negotiated in the over-the counter market. The duration of a swap agreement typically ranges from a few weeks to more than one year. In a centrally cleared swap, immediately following execution of the swap agreement, the swap agreement is novated to a central counterparty (the “CCP”) and the Fund’s counterparty on the swap agreement becomes the CCP. Risks may arise as a result of the failure of the counterparty to the swap contract to comply with the terms of the swap contract. The loss incurred by the failure of a counterparty is generally limited to the net payment to be received by the Funds and/or the termination value at the end of the contract. Therefore, the Funds consider the creditworthiness of each counterparty to a contract in evaluating potential credit risk. Although centrally cleared swaps typically present less counterparty risk than non-centrally cleared swaps, a Fund that has entered into centrally cleared swaps is subject to the risk of the failure of the CCP.
Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying reference asset or index. Entering into these agreements involves, to varying degrees, market risk, liquidity risk and elements of credit, legal and documentation risk that are not directly reflected in the amounts recognized in the Statements of Assets and Liabilities.
The Funds may pay or receive cash as collateral on these contracts which may be recorded as an asset and/or liability. The Funds must set aside liquid assets, or engage in other appropriate measures, to cover its obligations under these contracts. Swaps are marked to market daily using either pricing vendor quotations, counterparty prices or model prices and the change in value, if any, is recorded as an unrealized gain or loss. Upfront payments made and/or received by the Funds are recorded as an asset and/or liability and realized gains or losses are recognized ratably over the contract’s term/event, with the exception of forward starting interest rate swaps, whose realized gains or losses are recognized ratably from the effective start date. Periodic payments received or made on swap contracts are recorded as realized gains or losses. Gains or losses are realized upon termination of a swap contract and are recorded on the Statement of Operations.
Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (coupons plus capital gains/losses) of an underlying instrument in exchange for fixed or floating rate interest payments. To the extent the total return of the instrument or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Fund will receive a payment from or make a payment to the counterparty. Credit default swaps are a type of swap agreement in which the protection “buyer” is generally obligated to pay the protection “seller” an upfront and/ or a periodic stream of payments over the term of the contract provided that no credit event, such as a default, on a reference obligation has occurred. Credit default swaps (“CDS”) are typically two-party financial contracts that transfer credit exposure between the two parties. Under a typical CDS, one party (the “seller”) receives pre-determined periodic payments from the other party (the “buyer”). The seller agrees to make compensating specific payments to the buyer if a negative credit event occurs, such as the bankruptcy or default by the issuer of the underlying debt instrument. Swap agreements held at April 30, 2019 are disclosed after the Statement of Investments.
The average notional amount of the swap positions held in the ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund for the six-month period ended April 30, 2019 was $370,837,713. The average notional amount of the swap positions held in the Clough China Fund for the six-month period ended April 30, 2019 was $2,915,200.
Futures:Each Fund may invest in futures contracts in accordance with their investment objectives. Each Fund does so for a variety of reasons including for cash management, hedging or non-hedging purposes in an attempt to achieve the Fund’s investment objective. A futures contract provides for the future sale by one party and purchase by another party of a specified quantity of the security or other financial instrument at a specified price and time. A futures contract on an index is an agreement pursuant to which two parties agree to take or make delivery of an amount of cash equal to the difference between the value of the index at the close of the last trading day of the contract and the price at which the index contract was originally written. Futures transactions may result in losses in excess of the amount invested in the futures contract. There can be no guarantee that there will be a correlation between price movements in the hedging vehicle and in the portfolio securities being hedged. An incorrect correlation could result in a loss on both the hedged securities in a Fund and the hedging vehicle so that the portfolio return might have been greater had hedging not been attempted. There can be no assurance that a liquid market will exist at a time when a Fund seeks to close out a
163| April 30, 2019
Notes to Financial Statements |
April 30, 2019 (Unaudited) |
futures contract or a futures option position. Lack of a liquid market for any reason may prevent a Fund from liquidating an unfavorable position, and the Fund would remain obligated to meet margin requirements until the position is closed. In addition, a Fund could be exposed to risk if the counterparties to the contracts are unable to meet the terms of their contracts. With exchange traded futures, there is minimal counterparty credit risk to the Funds since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
When a purchase or sale of a futures contract is made by a Fund, the Fund is required to deposit with its custodian (or broker, if legally permitted) a specified amount of liquid assets (“initial margin”). The margin required for a futures contract is set by the exchange on which the contract is traded and may be modified during the term of the contract. The initial margin is in the nature of a performance bond or good faith deposit on the futures contract that is returned to a Fund upon termination of the contract, assuming all contractual obligations have been satisfied. These amounts are included in Deposit with broker for futures contracts on the Statement of Assets and Liabilities. Each day a Fund may pay or receive cash, called “variation margin,” equal to the daily change in value of the futures contract. Such payments or receipts are recorded for financial statement purposes as unrealized gains or losses by a Fund. Variation margin does not represent a borrowing or loan by a Fund but is instead a settlement between a Fund and the broker of the amount one would owe the other if the futures contract expired. When the contract is closed, a Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
The average value of futures contracts held in the ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund for the six-month period ended April 30, 2019 was $92,021,949.
Option Contracts:Each Fund may enter into options transactions for hedging purposes and for non-hedging purposes such as seeking to enhance return. Each Fund may write covered put and call options on any stocks or stock indices, currencies traded on domestic and foreign securities exchanges, or futures contracts on stock indices, interest rates and currencies traded on domestic and, to the extent permitted by the CFTC, foreign exchanges. A call option on an asset written by a Fund obligates the Fund to sell the specified asset to the holder (purchaser) at a stated price (the exercise price) if the option is exercised before a specified date (the expiration date). A put option on an asset written by a Fund obligates the Fund to buy the specified asset from the purchaser at the exercise price if the option is exercised before the expiration date. Premiums received when writing options are recorded as liabilities and are subsequently adjusted to the current value of the options written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options, which are either exercised or closed, are offset against the proceeds received or amount paid on the transaction to determine realized gains or losses which are recorded on the Statement of Operations.
Derivatives Instruments:The following tables disclose the amounts related to each Fund’s use of derivative instruments.
The effect of derivatives instruments on the Statement of Assets and Liabilities for the six-month period ended April 30, 2019:
Risk Exposure | Asset Location | Fair Value | Liability Location | Fair Value | ||||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund(a) | ||||||||||||
Commodity Contracts (Futures Contracts) | Unrealized appreciation on futures contracts(b) | $ | 2,082,165 | Unrealized depreciation on futures contracts(b) | $ | (2,819,495 | ) | |||||
Commodity Contracts (Total Return Swap Contracts) | Unrealized appreciation on total return swap contracts | 372 | Unrealized depreciation on total return swap contracts | N/A | ||||||||
Total | $ | 2,082,537 | $ | (2,819,495 | ) |
Risk Exposure | Asset Location | Fair Value | Liability Location | Fair Value | ||||||||
Clough China Fund | ||||||||||||
Equity Contracts (Total Return Swap Contracts) | Unrealized appreciation on total return swap contracts | $ | 459,377 | Unrealized depreciation on total return swap contracts | $ | (101,814 | ) | |||||
Total | $ | 459,377 | $ | (101,814 | ) |
(a) | The ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund consolidates the statements of assets and liabilities. |
(b) | Represents cumulative appreciation (depreciation) of futures contracts as reported in the Consolidated Statement of Investments. Only the current day's net variation margin is reported within the Consolidated Statement of Assets and Liabilities. |
164| April 30, 2019
Notes to Financial Statements |
April 30, 2019 (Unaudited) |
The effect of derivatives instruments on the Statement of Operations for the Fiscal Year Ended April 30, 2019:
Risk Exposure | Statement of Operations Location | Realized Gain/(Loss) on Derivatives Recognized in Income | Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | |||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund(a) | ||||||||||
Equity and Commodity Contracts (Futures Contracts) | Net realized gain on futures contracts/ Net change in unrealized depreciation on futures contracts | $ | (11,055,385 | ) | $ | (3,269,201 | ) | |||
Commodity Contracts (Total Return Swap Contracts) | Net realized gain on total return swap contracts/ Net change in unrealized depreciation on total return swap contracts | (20,396,816 | ) | (698 | ) | |||||
Total | $ | (31,452,201 | ) | $ | (3,269,899 | ) | ||||
Clough China Fund | ||||||||||
Equity Contracts (Total Return Swap Contracts) | Net realized gain on total return swap contracts/Net change in unrealized depreciation on total return swap contracts | $ | 171,981 | $ | 488,179 | |||||
Total | $ | 171,981 | $ | 488,179 |
(a) | The ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund consolidates the statements of operations. |
Certain derivative contracts are executed under either standardized netting agreements or, for exchange-traded derivatives, the relevant contracts for a particular exchange which contain enforceable netting provisions. A derivative netting arrangement creates an enforceable right of set-off that becomes effective, and affects the realization of settlement on individual assets, liabilities and collateral amounts, only following a specified event of default or early termination. Default events may include the failure to make payments or deliver securities timely, material adverse changes in financial condition or insolvency, the breach of minimum regulatory capital requirements, or loss of license, charter or other legal authorization necessary to perform under the contract.
The following table presents financial instruments that are subject to enforceable netting arrangements or other similar agreements as of April 30, 2019:
Offsetting of Derivatives Asset
April 30, 2019
Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts Presented in the Statement of Assets and Liabilities | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | ||||||||||||||||||||||||
Total Return Swap Contracts | $ | 372 | $ | – | $ | 372 | $ | (372 | ) | $ | – | $ | – | |||||||||||
Total | $ | 372 | $ | – | $ | 372 | $ | (372 | ) | $ | – | $ | – | |||||||||||
Clough China Fund | ||||||||||||||||||||||||
Total Return Swap Contracts | $ | 459,377 | $ | – | $ | 459,377 | $ | (129,087 | ) | $ | – | $ | 357,563 | |||||||||||
Total | $ | 459,377 | $ | – | $ | 459,377 | $ | (129,087 | ) | $ | – | $ | 357,563 |
(a) | These amounts are limited to the derivative asset/liability balance and, accordingly, do not include excess collateral received/pledged. |
165| April 30, 2019
Notes to Financial Statements |
April 30, 2019 (Unaudited) |
Offsetting of Derivatives Liability
April 30, 2019
Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts Presented in the Statement of Assets and Liabilities | Financial Instruments | Cash Collateral Pledged | Net Amount | |||||||||||||||||||
Clough China Fund | ||||||||||||||||||||||||
Total Return Swap Contracts | $ | 129,087 | $ | – | $ | 129,087 | $ | (129,087 | ) | $ | – | $ | – | |||||||||||
Total | $ | 129,087 | $ | – | $ | 129,087 | $ | (129,087 | ) | $ | – | $ | – |
4. TAX BASIS INFORMATION
Tax Basis of Distributions to Shareholders:The character of distributions made during the year from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or realized gain were recorded by a Fund. The amounts and characteristics of tax basis distributions and composition of distributable earnings/ (accumulated losses) are finalized at fiscal year-end. Accordingly, tax basis balances have not been determined as of April 30, 2019.
The tax character of distributions paid by the Funds for the Fiscal Year Ended October 31, 2018 were as follows:
Fund | Ordinary Income | Long-Term Capital Gain | Return of Capital | |||||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | $ | 13,217,549 | $ | – | – | |||||||
ALPS | Kotak India Growth Fund | – | 883,873 | – | |||||||||
ALPS | Smith Short Duration Bond Fund | 68,617 | – | – | |||||||||
ALPS | Smith Total Return Bond Fund | 69,423 | – | – | |||||||||
ALPS | Red Rocks Listed Private Equity Fund | 19,472,820 | 6,561,622 | – | |||||||||
ALPS | WMC Research Value Fund | 2,768,412 | 4,591,672 | – | |||||||||
Clough China Fund | 225,398 | – | – | |||||||||
RiverFront Asset Allocation Moderate | 1,365,082 | 4,262,007 | – | |||||||||
RiverFront Asset Allocation Aggressive | 785,003 | 1,660,504 | – | |||||||||
RiverFront Asset Allocation Growth | 359,997 | 195,360 | – | |||||||||
RiverFront Asset Allocation Growth & Income | 1,298,807 | 1,757,875 | – | |||||||||
RiverFront Asset Allocation Income & Growth | 174,303 | 184,603 | – |
166| April 30, 2019
Notes to Financial Statements |
April 30, 2019 (Unaudited) |
Unrealized Appreciation and Depreciation on Investments:As of April 30, 2019, the costs of investments for federal income tax purposes and accumulated net unrealized appreciation/(depreciation) on investments were as follows:
Fund | Gross Appreciation (excess of value over tax cost) | Gross Depreciation (excess of tax cost over value) | Net Unrealized Appreciation/(Depreciation) | Cost of Investments for Income Tax Purposes | ||||||||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | $ | 24,351,168 | $ | (26,002,629 | ) | $ | (1,651,461 | ) | $ | 609,831,701 | ||||||
ALPS | Kotak India Growth Fund | 4,044,014 | (1,197,629 | ) | 2,846,385 | 22,962,381 | |||||||||||
ALPS | Smith Short Duration Bond Fund | 225,612 | (556 | ) | 225,056 | 35,259,660 | |||||||||||
ALPS | Smith Total Return Bond Fund | 1,040,871 | (11,319 | ) | 1,029,552 | 57,872,927 | |||||||||||
ALPS | Red Rocks Listed Private Equity Fund | 36,742,678 | (4,023,492 | ) | 32,719,186 | 170,265,034 | |||||||||||
ALPS | WMC Research Value Fund | 13,850,623 | (3,930,990 | ) | 9,919,633 | 76,497,787 | |||||||||||
Clough China Fund | 11,414,563 | (4,854,026 | ) | 6,560,537 | 34,090,320 | |||||||||||
RiverFront Asset Allocation Moderate | 1,087,927 | (253,875 | ) | 834,052 | 63,057,073 | |||||||||||
RiverFront Asset Allocation Aggressive | 782,498 | (953,876 | ) | (171,378 | ) | 41,557,508 | ||||||||||
RiverFront Asset Allocation Growth | 461,199 | (417,756 | ) | 43,443 | 24,683,697 | |||||||||||
RiverFront Asset Allocation Growth & Income | 1,439,893 | (752,528 | ) | 687,365 | 72,245,773 | |||||||||||
RiverFront Asset Allocation Income & Growth | 160,224 | (10,463 | ) | 149,761 | 8,405,344 |
5. SECURITIES TRANSACTIONS
Purchases and sales of securities, excluding short-term securities and U.S. Government Obligations during the six-month period ended April 30, 2019 were as follows:
Fund | Purchases of Securities | Proceeds from Sales of Securities | ||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund(a) | $ | 78,101,437 | $ | 21,177,887 | ||||
ALPS | Kotak India Growth Fund(b) | 9,430,306 | 12,807,394 | ||||||
ALPS | Smith Short Duration Bond Fund | 68,909,566 | 54,731,776 | ||||||
ALPS | Smith Total Return Bond Fund | 147,610,469 | 114,798,372 | ||||||
ALPS | Red Rocks Listed Private Equity Fund | 32,849,755 | 82,458,512 | ||||||
ALPS | WMC Research Value Fund | 23,070,006 | 26,317,798 | ||||||
Clough China Fund | 69,472,685 | 65,723,243 | ||||||
RiverFront Asset Allocation Moderate | 12,656,403 | 28,448,024 | ||||||
RiverFront Asset Allocation Aggressive | 3,661,227 | 11,518,650 | ||||||
RiverFront Asset Allocation Growth | 4,123,280 | 8,985,851 | ||||||
RiverFront Asset Allocation Growth & Income | 17,942,325 | 32,100,430 | ||||||
RiverFront Asset Allocation Income & Growth | 1,751,155 | 3,332,801 |
Purchases and sales of U.S. Government Obligations during the six-month period ended April 30, 2019 were as follows:
Fund | Purchases of Securities | Proceeds from Sales of Securities | ||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund(a) | $ | 256,514,956 | $ | 344,494,189 | ||||
ALPS | Smith Short Duration Bond Fund | 17,826,592 | 11,148,847 | ||||||
ALPS | Smith Total Return Bond Fund | 37,596,419 | 24,736,670 |
(a) | Purchases and sales for ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund are consolidated and include the balances of CoreCommodity Management Cayman Commodity Fund, Ltd. (wholly owned subsidiary). |
(b) | Purchases and sales for ALPS | Kotak India Growth Fund are consolidated and include the balances of Kotak Mauritius Portfolio (wholly owned subsidiary). |
167| April 30, 2019
Notes to Financial Statements |
April 30, 2019 (Unaudited) |
6. BENEFICIAL INTEREST TRANSACTIONS
Shares redeemed within 90 days of purchase for ALPS | Red Rocks Listed Private Equity Fund, ALPS | Smith Total Return Bond Fund, and ALPS | Smith Short Duration Bond Fund and 30 days of purchase for ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund, ALPS | Kotak India Growth Fund, and Clough China Fund, may incur a 2% short-term redemption fee deducted from the redemption amount. The ALPS | WMC Research Value Fund, RiverFront Asset Allocation Aggressive, RiverFront Asset Allocation Growth, RiverFront Asset Allocation Growth & Income, RiverFront Asset Allocation Moderate and RiverFront Asset Allocation Income & Growth shares do not incur redemption fees.
Effective December 1, 2017, Class A shares were renamed Investor Class shares for all Funds. Such shares will be offered without an initial sales charge or a contingent deferred sales charge. The RiverFront Asset Allocation Aggressive existing Investor shares were renamed Investor Class II shares.
For the sixth-month period ended April 30, 2019, the amounts listed below were retained by the Funds. These amounts are reflected in “Shares redeemed” in the Statements of Changes in Net Assets.
Redemption Fee Retained | ||||||||
Fund | For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | ||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund - Investor Class(a) | $ | 2,603 | $ | 953 | ||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund - Class C | 1,039 | – | ||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund - Class I | 4,680 | 1,825 | ||||||
ALPS | Kotak India Growth Fund - Investor Class(a) | 100 | 780 | ||||||
ALPS | Kotak India Growth Fund - Class C | 21 | – | ||||||
ALPS | Kotak India Growth Fund - Class I | – | 1,310 | ||||||
ALPS | Smith Short Duration Bond Fund - Class I | 13,188 | 20 | ||||||
ALPS | Smith Total Return Bond Fund - Investor Class(a) | 51 | – | ||||||
ALPS | Smith Total Return Bond Fund - Class A | 51 | – | ||||||
ALPS | Smith Total Return Bond Fund - Class I | 5,704 | – | ||||||
ALPS | Red Rocks Listed Private Equity Fund - Investor Class(a) | 1,578 | 2,739 | ||||||
ALPS | Red Rocks Listed Private Equity Fund - Class C | 67 | – | ||||||
ALPS | Red Rocks Listed Private Equity Fund - Class I | 2,911 | 20,134 | ||||||
Clough China Fund - Investor Class(a) | – | 104 |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
168| April 30, 2019
Notes to Financial Statements
April 30, 2019 (Unaudited)
Transactions in shares of capital stock were as follows:
ALPS | CoreCommodity Management CompleteCommodities®Strategy Fund | ||||||||
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | |||||||
Investor Class(a) | ||||||||
Shares sold | 1,445,258 | 2,404,798 | ||||||
Dividends reinvested | 192,618 | 149,637 | ||||||
Shares redeemed | (1,953,941 | ) | (2,354,591 | ) | ||||
Net increase/(decrease) in shares outstanding | (316,065 | ) | 199,844 | |||||
Class A(b) | ||||||||
Shares sold | 34,457 | 25,286 | ||||||
Dividends reinvested | 769 | – | ||||||
Shares redeemed | (1 | ) | – | |||||
Net increase in shares outstanding | 35,225 | 25,286 | ||||||
Class C | ||||||||
Shares sold | 290,416 | 546,396 | ||||||
Dividends reinvested | 27,483 | 15,808 | ||||||
Shares redeemed | (309,258 | ) | (282,859 | ) | ||||
Net increase in shares outstanding | 8,641 | 279,345 | ||||||
Class I | ||||||||
Shares sold | 23,542,113 | 40,931,672 | ||||||
Dividends reinvested | 2,060,834 | 1,409,828 | ||||||
Shares redeemed | (27,437,570 | ) | (19,960,935 | ) | ||||
Net increase/(decrease) in shares outstanding | (1,834,623 | ) | 22,380,565 |
ALPS | Kotak India Growth Fund | ||||||||
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | |||||||
Investor Class(a) | ||||||||
Shares sold | 31,378 | 108,593 | ||||||
Dividends reinvested | 28,015 | 17,076 | ||||||
Shares redeemed | (125,811 | ) | (286,012 | ) | ||||
Net decrease in shares outstanding | (66,418 | ) | (160,343 | ) | ||||
Class A(b) | ||||||||
Shares sold | – | 720 | ||||||
Dividends reinvested | 49 | – | ||||||
Net increase in shares outstanding | 49 | 720 | ||||||
Class C | ||||||||
Shares sold | 3,730 | 36,610 | ||||||
Dividends reinvested | 12,986 | 4,697 | ||||||
Shares redeemed | (8,910 | ) | (13,351 | ) | ||||
Net increase in shares outstanding | 7,806 | 27,956 | ||||||
Class I | ||||||||
Shares sold | 561,038 | 465,614 | ||||||
Dividends reinvested | 60,005 | 33,509 | ||||||
Shares redeemed | (285,909 | ) | (696,418 | ) | ||||
Net increase/(decrease) in shares outstanding | 335,134 | (197,295 | ) |
169| April 30, 2019
Notes to Financial Statements
April 30, 2019 (Unaudited)
ALPS | Smith Short Duration Bond Fund | ||||||||
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period July 2, 2018 (Commencement) to October 31, 2018 | |||||||
Investor Class | ||||||||
Shares sold | 17,785 | 49,021 | ||||||
Dividends reinvested | 542 | 197 | ||||||
Shares redeemed | (24,861 | ) | (11 | ) | ||||
Net increase/(decrease) in shares outstanding | (6,534 | ) | 49,207 | |||||
Class A | ||||||||
Shares sold | 5,470 | 11,000 | ||||||
Dividends reinvested | 181 | 52 | ||||||
Net increase in shares outstanding | 5,651 | 11,052 | ||||||
Class C | ||||||||
Shares sold | – | 37,049 | ||||||
Dividends reinvested | 272 | 61 | ||||||
Net increase in shares outstanding | 272 | 37,110 | ||||||
Class I | ||||||||
Shares sold | 2,534,523 | 1,357,229 | ||||||
Dividends reinvested | 19,387 | 5,782 | ||||||
Shares redeemed | (367,953 | ) | (1,080 | ) | ||||
Net increase in shares outstanding | 2,185,957 | 1,361,931 |
ALPS | Smith Total Return Bond Fund | ||||||||
For the Six Months Ended April 30, 2019 (Unaudited) | For the Period July 2, 2018 (Commencement) to October 31, 2018 | |||||||
Investor Class | ||||||||
Shares sold | 184,096 | 34,199 | ||||||
Dividends reinvested | 1,614 | 114 | ||||||
Shares redeemed | (18,854 | ) | – | |||||
Net increase in shares outstanding | 166,856 | 34,313 | ||||||
Class A | ||||||||
Shares sold | 242,299 | 13,470 | ||||||
Dividends reinvested | 462 | 70 | ||||||
Shares redeemed | (100,186 | ) | – | |||||
Net increase in shares outstanding | 142,575 | 13,540 | ||||||
Class C | ||||||||
Shares sold | – | 11,990 | ||||||
Dividends reinvested | 120 | 47 | ||||||
Net increase in shares outstanding | 120 | 12,037 | ||||||
Class I | ||||||||
Shares sold | 4,471,674 | 1,039,889 | ||||||
Dividends reinvested | 31,140 | 6,526 | ||||||
Shares redeemed | (356,519 | ) | (1,224 | ) | ||||
Net increase in shares outstanding | 4,146,295 | 1,045,191 |
170| April 30, 2019
Notes to Financial Statements
April 30, 2019 (Unaudited)
ALPS | Red Rocks Listed Private Equity Fund | ||||||||
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | |||||||
Investor Class(a) | ||||||||
Shares sold | 635,253 | 1,662,283 | ||||||
Dividends reinvested | 174,748 | 732,595 | ||||||
Shares redeemed | (1,333,457 | ) | (4,027,177 | ) | ||||
Net decrease in shares outstanding | (523,456 | ) | (1,632,299 | ) | ||||
Class A(b) | ||||||||
Shares sold | 905 | 1,383 | ||||||
Dividends reinvested | 68 | – | ||||||
Net increase in shares outstanding | 973 | 1,383 | ||||||
Class C | ||||||||
Shares sold | 69,475 | 711,785 | ||||||
Dividends reinvested | 88,680 | 252,360 | ||||||
Shares redeemed | (490,468 | ) | (501,413 | ) | ||||
Net increase/(decrease) in shares outstanding | (332,313 | ) | 462,732 | |||||
Class I | ||||||||
Shares sold | 4,465,519 | 12,482,220 | ||||||
Dividends reinvested | 866,843 | 1,953,871 | ||||||
Shares redeemed | (10,096,934 | ) | (6,207,321 | ) | ||||
Net increase/(decrease) in shares outstanding | (4,764,572 | ) | 8,228,770 | |||||
Class R | ||||||||
Shares sold | 141,947 | 304,915 | ||||||
Dividends reinvested | 44,942 | 99,325 | ||||||
Shares redeemed | (94,665 | ) | (196,766 | ) | ||||
Net increase in shares outstanding | 92,224 | 207,474 |
ALPS | WMC Research Value Fund | ||||||||
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | |||||||
Investor Class(a) | ||||||||
Shares sold | 17,918 | 42,650 | ||||||
Dividends reinvested | 544,959 | 434,186 | ||||||
Shares redeemed | (157,149 | ) | (404,481 | ) | ||||
Net increase in shares outstanding | 405,728 | 72,355 | ||||||
Class A(b) | ||||||||
Shares sold | – | 1,098 | ||||||
Dividends reinvested | 117 | – | ||||||
Shares redeemed | (1 | ) | – | |||||
Net increase in shares outstanding | 116 | 1,098 | ||||||
Class C | ||||||||
Shares sold | 8,244 | 2,017 | ||||||
Dividends reinvested | 6,835 | 5,073 | ||||||
Shares redeemed | (24,686 | ) | (2,591 | ) | ||||
Net increase/(decrease) in shares outstanding | (9,607 | ) | 4,499 | |||||
Class I | ||||||||
Shares sold | 209,669 | 370,387 | ||||||
Dividends reinvested | 416,635 | 351,365 | ||||||
Shares redeemed | (495,420 | ) | (1,014,778 | ) | ||||
Net increase/(decrease) in shares outstanding | 130,884 | (293,026 | ) |
171| April 30, 2019
Notes to Financial Statements
April 30, 2019 (Unaudited)
Clough China Fund | ||||||||
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | |||||||
Investor Class(a) | ||||||||
Shares sold | 17,370 | 27,347 | ||||||
Dividends reinvested | 27,938 | 1,040 | ||||||
Shares redeemed | (57,255 | ) | (115,807 | ) | ||||
Net decrease in shares outstanding | (11,947 | ) | (87,420 | ) | ||||
Class A(b) | ||||||||
Shares sold | 4,799 | 334 | ||||||
Dividends reinvested | 29 | – | ||||||
Shares redeemed | (1 | ) | – | |||||
Net increase in shares outstanding | 4,827 | 334 | ||||||
Class C | ||||||||
Shares sold | 3,682 | 7,100 | ||||||
Dividends reinvested | 10,101 | – | ||||||
Shares redeemed | (46,063 | ) | (52,565 | ) | ||||
Net decrease in shares outstanding | (32,280 | ) | (45,465 | ) | ||||
Class I | ||||||||
Shares sold | 11,217 | 71,945 | ||||||
Dividends reinvested | 78,396 | 4,707 | ||||||
Shares redeemed | (38,329 | ) | (348,611 | ) | ||||
Net increase/(decrease) in shares outstanding | 51,284 | (271,959 | ) |
172| April 30, 2019
Notes to Financial Statements
April 30, 2019 (Unaudited)
RiverFront Asset Allocation Aggressive | ||||||||
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | |||||||
Investor Class(a) | ||||||||
Shares sold | 75,172 | 19,583 | ||||||
Dividends reinvested | 94,006 | 20,763 | ||||||
Shares redeemed | (100,891 | ) | (281,867 | ) | ||||
Net increase/(decrease) in shares outstanding | 68,287 | (241,521 | ) | |||||
Class A | ||||||||
Shares sold | 28,144 | 612 | ||||||
Dividends reinvested | 200 | – | ||||||
Shares redeemed | (1,613 | ) | – | |||||
Net increase in shares outstanding | 26,731 | 612 | ||||||
Class C | ||||||||
Shares sold | 27,270 | 72,213 | ||||||
Dividends reinvested | 190,251 | 26,131 | ||||||
Shares redeemed | (233,027 | ) | (146,179 | ) | ||||
Net decrease in shares outstanding | (15,506 | ) | (47,835 | ) | ||||
Class I | ||||||||
Shares sold | 142,023 | 265,198 | ||||||
Dividends reinvested | 187,996 | 31,757 | ||||||
Shares redeemed | (387,784 | ) | (281,700 | ) | ||||
Net increase/(decrease) in shares outstanding | (57,765 | ) | 15,255 | |||||
Investor II(b) | ||||||||
Shares sold | 7,198 | 2,358 | ||||||
Dividends reinvested | 36,176 | 7,256 | ||||||
Shares redeemed | (57,904 | ) | (82,077 | ) | ||||
Net decrease in shares outstanding | (14,530 | ) | (72,463 | ) | ||||
Class L | ||||||||
Shares sold | 140,360 | 121,715 | ||||||
Dividends reinvested | 415,449 | 61,594 | ||||||
Shares redeemed | (253,983 | ) | (407,438 | ) | ||||
Net increase/(decrease) in shares outstanding | 301,826 | (224,129 | ) |
173| April 30, 2019
Notes to Financial Statements
April 30, 2019 (Unaudited)
RiverFront Asset Allocation Growth | ||||||||
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | |||||||
Investor Class(a) | ||||||||
Shares sold | 5,120 | 98,940 | ||||||
Dividends reinvested | 110,989 | 8,226 | ||||||
Shares redeemed | (189,007 | ) | (174,218 | ) | ||||
Net decrease in shares outstanding | (72,898 | ) | (67,052 | ) | ||||
Class A(b) | ||||||||
Shares sold | 56,319 | 686 | ||||||
Dividends reinvested | 173 | – | ||||||
Shares redeemed | (1,381 | ) | – | |||||
Net increase in shares outstanding | 55,111 | 686 | ||||||
Class C | ||||||||
Shares sold | 58,333 | 106,471 | ||||||
Dividends reinvested | 178,928 | 12,414 | ||||||
Shares redeemed | (272,770 | ) | (180,953 | ) | ||||
Net decrease in shares outstanding | (35,509 | ) | (62,068 | ) | ||||
Class I | ||||||||
Shares sold | 141,691 | 216,234 | ||||||
Dividends reinvested | 232,834 | 17,824 | ||||||
Shares redeemed | (260,404 | ) | (297,249 | ) | ||||
Net increase/(decrease) in shares outstanding | 114,121 | (63,191 | ) |
RiverFront Asset Allocation Growth & Income | ||||||||
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | |||||||
Investor Class(a) | ||||||||
Shares sold | 11,988 | 79,468 | ||||||
Dividends reinvested | 114,317 | 33,034 | ||||||
Shares redeemed | (192,420 | ) | (755,337 | ) | ||||
Net decrease in shares outstanding | (66,115 | ) | (642,835 | ) | ||||
Class A(b) | ||||||||
Shares sold | 93,570 | 929 | ||||||
Dividends reinvested | 473 | 8 | ||||||
Shares redeemed | (18,450 | ) | – | |||||
Net increase in shares outstanding | 75,593 | 937 | ||||||
Class C | ||||||||
Shares sold | 69,579 | 222,766 | ||||||
Dividends reinvested | 283,404 | 60,921 | ||||||
Shares redeemed | (474,048 | ) | (382,009 | ) | ||||
Net decrease in shares outstanding | (121,065 | ) | (98,322 | ) | ||||
Class I | ||||||||
Shares sold | 373,734 | 2,141,952 | ||||||
Dividends reinvested | 586,541 | 109,646 | ||||||
Shares redeemed | (1,055,451 | ) | (687,808 | ) | ||||
Net increase/(decrease) in shares outstanding | (95,176 | ) | 1,563,790 |
174| April 30, 2019
Notes to Financial Statements
April 30, 2019 (Unaudited)
RiverFront Asset Allocation Moderate | ||||||||
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | |||||||
Investor Class(a) | ||||||||
Shares sold | 1,136 | 26,370 | ||||||
Dividends reinvested | 114,815 | 59,429 | ||||||
Shares redeemed | (283,140 | ) | (438,211 | ) | ||||
Net decrease in shares outstanding | (167,189 | ) | (352,412 | ) | ||||
Class A(b) | ||||||||
Shares sold | 165,447 | 815 | ||||||
Dividends reinvested | 880 | 8 | ||||||
Shares redeemed | (2,961 | ) | – | |||||
Net increase in shares outstanding | 163,366 | 823 | ||||||
Class C | ||||||||
Shares sold | 77,494 | 162,540 | ||||||
Dividends reinvested | 562,036 | 209,832 | ||||||
Shares redeemed | (1,043,703 | ) | (942,609 | ) | ||||
Net decrease in shares outstanding | (404,173 | ) | (570,237 | ) | ||||
Class I | ||||||||
Shares sold | 169,424 | 629,128 | ||||||
Dividends reinvested | 381,813 | 155,323 | ||||||
Shares redeemed | (642,056 | ) | (814,842 | ) | ||||
Net decrease in shares outstanding | (90,819 | ) | (30,391 | ) |
RiverFront Asset Allocation Income & Growth | ||||||||
For the Six Months Ended April 30, 2019 (Unaudited) | For the Year Ended October 31, 2018 | |||||||
Investor Class(a) | ||||||||
Shares sold | – | 7,500 | ||||||
Dividends reinvested | 1,124 | 2,997 | ||||||
Shares redeemed | (2,838 | ) | (95,327 | ) | ||||
Net decrease in shares outstanding | (1,714 | ) | (84,830 | ) | ||||
Class A(b) | ||||||||
Shares sold | 3,515 | 899 | ||||||
Dividends reinvested | 89 | 10 | ||||||
Shares redeemed | (19 | ) | – | |||||
Net increase in shares outstanding | 3,585 | 909 | ||||||
Class C | ||||||||
Shares sold | 75,443 | 49,920 | ||||||
Dividends reinvested | 37,187 | 15,187 | ||||||
Shares redeemed | (147,086 | ) | (175,457 | ) | ||||
Net decrease in shares outstanding | (34,456 | ) | (110,350 | ) | ||||
Class I | ||||||||
Shares sold | 97,371 | 177,209 | ||||||
Dividends reinvested | 30,845 | 11,153 | ||||||
Shares redeemed | (183,640 | ) | (72,922 | ) | ||||
Net increase/(decrease) in shares outstanding | (55,424 | ) | 115,440 |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Prior to December 1, 2017, Investor Class II was known as Investor Class. |
175| April 30, 2019
Notes to Financial Statements
April 30, 2019 (Unaudited)
7. AFFILIATED COMPANIES
Funds may invest in certain securities that are considered securities issued by affiliated companies. As defined by the Investment Company Act of 1940, an affiliated person, including an affiliated company, is one in which a Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Fund. The purchases, sales, dividend income, realized gains or losses, change in unrealized gains or losses, shares and value of investments in affiliated companies for the six-month period ended April 30, 2019 were as follows:
RiverFront Asset Allocation Aggressive | Share Balance as of October 31, 2018 | Purchases | Sales | Share Balance as of April 30, 2019 | Dividends | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Market Value as of April 30, 2019 | ||||||||||||||||||||||||
First Trust RiverFront Dynamic Asia Pacific ETF | 49,049 | – | (8,266 | ) | 40,783 | $ | 23,876 | $ | 80,223 | $ | (80,402 | ) | $ | 2,108,073 | ||||||||||||||||||
RiverFront Dynamic US Dividend Advantage ETF | 164,840 | – | (28,501 | ) | 136,339 | 52,552 | 350,379 | (36,482 | ) | 4,490,775 | ||||||||||||||||||||||
First Trust RiverFront Dynamic Developed International ETF | 213,608 | – | (37,727 | ) | 175,881 | 70,578 | 611,599 | (166,295 | ) | 10,215,169 | ||||||||||||||||||||||
First Trust RiverFront Dynamic Emerging Markets ETF | 85,829 | 26,561 | (16,246 | ) | 96,144 | 22,354 | 693,885 | (11,918 | ) | 6,054,188 | ||||||||||||||||||||||
First Trust RiverFront Dynamic Europe ETF | 88,128 | – | (45,860 | ) | 42,268 | 11,492 | 552,324 | (447,168 | ) | 2,552,987 | ||||||||||||||||||||||
RiverFront Dynamic US Flex-Cap ETF | 527,182 | 66,227 | (142,417 | ) | 450,992 | 124,090 | 831,174 | (369,022 | ) | 15,393,033 | ||||||||||||||||||||||
$ | 304,942 | $ | 3,119,584 | $ | (1,111,287 | ) | $ | 40,814,225 |
RiverFront Asset Allocation Growth | Share Balance as of October 31, 2018 | Purchases | Sales | Share Balance as of April 30, 2019 | Dividends | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Market Value as of April 30, 2019 | ||||||||||||||||||||||||
First Trust RiverFront Dynamic Asia Pacific ETF | 18,145 | – | (3,333 | ) | 14,812 | $ | 9,367 | $ | 32,232 | $ | (38,715 | ) | $ | 765,632 | ||||||||||||||||||
RiverFront Dynamic Core Income ETF | 78,326 | 29,576 | (32,332 | ) | 75,570 | 25,726 | 64,501 | (4,637 | ) | 1,843,530 | ||||||||||||||||||||||
RiverFront Dynamic US Dividend Advantage ETF | 116,065 | – | (36,811 | ) | 79,254 | 36,354 | 237,356 | (79,996 | ) | 2,610,492 | ||||||||||||||||||||||
First Trust Riverfront Dynamic Developed International ETF | 97,892 | 8,407 | (28,698 | ) | 77,601 | 33,180 | 320,781 | (189,920 | ) | 4,507,066 | ||||||||||||||||||||||
First Trust RiverFront Dynamic Emerging Markets ETF | 39,545 | 18,591 | (8,711 | ) | 49,425 | 10,623 | 351,139 | (12,782 | ) | 3,112,292 | ||||||||||||||||||||||
First Trust RiverFront Dynamic Europe ETF | 27,124 | – | (5,235 | ) | 21,889 | 6,013 | 121,067 | (59,595 | ) | 1,322,096 | ||||||||||||||||||||||
RiverFront Dynamic US Flex-Cap ETF | 311,684 | – | (59,106 | ) | 252,578 | 70,749 | 445,646 | (276,856 | ) | 8,620,866 | ||||||||||||||||||||||
RiverFront Dynamic Unconstrained Income ETF | 98,864 | – | (79,846 | ) | 19,018 | 21,491 | 50,308 | (74,023 | ) | 480,300 | ||||||||||||||||||||||
Riverfront Strategic | ||||||||||||||||||||||||||||||||
Income Fund | – | 77,478 | (34,799 | ) | 42,679 | 26,628 | 20,059 | 6,249 | 1,052,891 | |||||||||||||||||||||||
$ | 240,131 | $ | 1,643,089 | $ | (730,275 | ) | $ | 24,315,165 |
176| April 30, 2019
Notes to Financial Statements
April 30, 2019 (Unaudited)
RiverFront Asset Allocation Growth & Income | Share Balance as of October 31, 2018 | Purchases | Sales | Share Balance as of April 30, 2019 | Dividends | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Market Value as of April 30, 2019 | ||||||||||||||||||||||||
First Trust Riverfront Dynamic Asia Pacific ETF | 44,878 | – | (8,124 | ) | 36,754 | $ | 22,650 | $ | 78,612 | $ | (92,407 | ) | $ | 1,899,814 | ||||||||||||||||||
Riverfront Dynamic Core Income ETF | 532,911 | 188,740 | (171,019 | ) | 550,632 | 186,412 | 469,380 | (23,022 | ) | 13,432,667 | ||||||||||||||||||||||
Riverfront Dynamic US Dividend Advantage ETF | 603,647 | – | (154,382 | ) | 449,265 | 191,050 | 1,328,986 | (402,407 | ) | 14,798,025 | ||||||||||||||||||||||
First Trust Riverfront Dynamic Developed International ETF | 262,527 | 23,947 | (100,256 | ) | 186,218 | 85,433 | 912,965 | (643,920 | ) | 10,815,542 | ||||||||||||||||||||||
First Trust Riverfront Dynamic Emerging Markets ETF | 72,759 | 86,830 | (19,683 | ) | 139,906 | 19,923 | 923,564 | (20,780 | ) | 8,809,881 | ||||||||||||||||||||||
First Trust Riverfront Dynamic Europe ETF | 87,167 | – | (34,948 | ) | 52,219 | 14,343 | 456,839 | (330,337 | ) | 3,154,028 | ||||||||||||||||||||||
Riverfront Dynamic US Flex-Cap ETF | 503,078 | – | (93,516 | ) | 409,562 | 113,653 | 724,051 | (395,091 | ) | 13,978,965 | ||||||||||||||||||||||
Riverfront Dynamic Unconstrained Income ETF | 361,253 | – | (305,372 | ) | 55,881 | 70,213 | 192,921 | (288,354 | ) | 1,411,275 | ||||||||||||||||||||||
Riverfront Strategic Income Fund | – | 293,227 | (167,681 | ) | 125,546 | 95,709 | 59,007 | 36,900 | 3,097,220 | |||||||||||||||||||||||
$ | 799,386 | $ | 5,146,325 | $ | (2,159,418 | ) | $ | 71,397,417 |
RiverFront Asset Allocation Moderate | Share Balance as of October 31, 2018 | Purchases | Sales | Share Balance as of April 30, 2019 | Dividends | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Market Value as of April 30, 2019 | ||||||||||||||||||||||||
First Trust RiverFront Dynamic Asia Pacific ETF | 13,443 | – | (2,994 | ) | 10,449 | $ | 6,586 | $ | 28,754 | $ | (32,710 | ) | $ | 540,109 | ||||||||||||||||||
RiverFront Dynamic Core Income ETF | 1,182,155 | 214,079 | (371,429 | ) | 1,024,805 | 382,825 | 951,374 | (48,770 | ) | 25,000,118 | ||||||||||||||||||||||
RiverFront Dynamic US Dividend Advantage ETF | 690,191 | – | (153,283 | ) | 536,908 | 216,471 | 1,573,034 | (499,993 | ) | 17,684,837 | ||||||||||||||||||||||
First Trust RiverFront Dynamic Developed International ETF | 85,826 | 23,021 | (20,377 | ) | 88,470 | 31,064 | 353,716 | (120,994 | ) | 5,138,337 | ||||||||||||||||||||||
First Trust RiverFront Dynamic Europe ETF | 6,116 | 3,788 | (1,682 | ) | 8,222 | 1,944 | 50,100 | (17,152 | ) | 496,609 | ||||||||||||||||||||||
RiverFront Dynamic US Flex-Cap ETF | 454,234 | 44,144 | (197,003 | ) | 301,375 | 90,408 | 501,987 | (285,373 | ) | 10,286,381 | ||||||||||||||||||||||
RiverFront Dynamic Unconstrained Income ETF | 263,876 | – | (214,345 | ) | 49,531 | 55,978 | 146,686 | (206,975 | ) | 1,250,905 | ||||||||||||||||||||||
Riverfront Strategic Income Fund | – | 195,913 | (89,424 | ) | 106,489 | 67,184 | 50,050 | 17,595 | 2,627,084 | |||||||||||||||||||||||
$ | 852,460 | $ | 3,655,701 | $ | (1,194,372 | ) | $ | 63,024,380 |
177| April 30, 2019
Notes to Financial Statements
April 30, 2019 (Unaudited)
RiverFront Asset Allocation Income & Growth | Share Balance as of October 31, 2018 | Purchases | Sales | Share Balance as of April 30, 2019 | Dividends | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Market Value as of April 30, 2019 | ||||||||||||||||||||||||
First Trust RiverFront Dynamic Asia Pacific ETF | 1,670 | 75 | (1,745 | ) | – | $ | 684 | $ | 15,631 | $ | (16,559 | ) | $ | – | ||||||||||||||||||
RiverFront Dynamic Core Income ETF | 244,739 | 26,923 | (64,584 | ) | 207,078 | 79,081 | 204,516 | (17,374 | ) | 5,051,668 | ||||||||||||||||||||||
RiverFront Dynamic US Dividend Advantage ETF | 58,571 | 8,879 | (12,532 | ) | 54,918 | 20,129 | 175,869 | (36,728 | ) | 1,808,906 | ||||||||||||||||||||||
First Trust RiverFront Dynamic Developed International ETF | 4,561 | 159 | (956 | ) | 3,764 | 1,510 | 14,625 | (4,930 | ) | 218,613 | ||||||||||||||||||||||
First Trust RiverFront Dynamic Europe ETF | 647 | 25 | (138 | ) | 534 | 144 | 3,193 | (1,352 | ) | 32,254 | ||||||||||||||||||||||
RiverFront Dynamic US Flex-Cap ETF | 25,365 | 6,704 | (9,716 | ) | 22,353 | 5,503 | 46,581 | (13,022 | ) | 762,941 | ||||||||||||||||||||||
RiverFront Dynamic Unconstrained Income ETF | 33,553 | 398 | (27,326 | ) | 6,625 | 7,289 | 19,259 | (25,993 | ) | 167,314 | ||||||||||||||||||||||
Riverfront Strategic Income Fund | – | 25,951 | (11,457 | ) | 14,494 | 8,969 | 7,079 | 2,855 | 357,567 | |||||||||||||||||||||||
$ | 123,309 | $ | 486,753 | $ | (113,103 | ) | $ | 8,399,263 |
8. MANAGEMENT AND RELATED-PARTY TRANSACTIONS
ALPS Advisors, Inc. (the “AAI”) acts as the Portfolios’ investment adviser. AAI is an indirect wholly owned subsidiary of DST Systems, Inc. (“DST”). DST is a wholly-owned subsidiary of SS&C Technologies Holdings, Inc. (“SS&C”), a publicly traded company listed on the NASDAQ Global Select Market.
AAI has delegated daily management of the Funds listed below to the corresponding Sub-Advisor(s) listed in the table below. Each Sub-Advisor manages the investments of the Fund in accordance with its investment objective, policies and limitations and investment guidelines established jointly by AAI and the Board.
Fund | Sub-Advisor(s) |
ALPS | CoreCommodity Management CompleteCommodities®Strategy Fund | CoreCommodity Management, LLC |
ALPS | Kotak India Growth Fund | Kotak Mahindra (UK) Limited |
ALPS | Smith Short Duration Bond Fund | Smith Capital Investors, LLC |
ALPS | Smith Total Return Bond Fund | Smith Capital Investors, LLC |
ALPS | Red Rocks Listed Private Equity Fund | Red Rocks Capital, LLC(a) |
ALPS | WMC Research Value Fund | Wellington Management Company, LLP |
Clough China Fund | Clough Capital Partners, LP |
RiverFront Asset Allocation Aggressive | RiverFront Investment Group, LLC |
RiverFront Asset Allocation Growth | RiverFront Investment Group, LLC |
RiverFront Asset Allocation Growth & Income | RiverFront Investment Group, LLC |
RiverFront Asset Allocation Moderate | RiverFront Investment Group, LLC |
RiverFront Asset Allocation Income & Growth | RiverFront Investment Group, LLC |
(a) | Red Rocks Capital LLC is a subsidiary of ALPS Advisors, Inc. |
Pursuant to the Investment Advisory Agreement (the “Advisory Agreement”), the Funds listed below pay AAI an annual management fee which is based on each Fund’s average daily net assets. The management fee is paid on a monthly basis. The following table reflects the Funds’ contractual management fee rates (expressed as an annual rate).
178| April 30, 2019
Notes to Financial Statements
April 30, 2019 (Unaudited)
Fund | Contractual Management Fee |
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | 0.85% |
ALPS | Kotak India Growth Fund | 1.25% |
ALPS | Smith Short Duration Bond Fund | 0.37% |
ALPS | Smith Total Return Bond Fund | 0.55% |
ALPS | Red Rocks Listed Private Equity Fund | 0.85% |
ALPS | WMC Research Value Fund | 0.95%(a) |
Clough China Fund | 1.35% |
(a) | The contractual management fee is 0.95% for the first $250 million of net assets, 0.85% for the next $250 million of net assets, and 0.75% for net assets in excess of $500 million. |
Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Riverfront Funds listed below pay an annual unitary administrative fee which is based on each Fund’s average daily net assets. The unitary administrative fee is paid on a monthly basis. The following table reflects the Funds’ contractual unitary administrative fee rates (expressed as an annual rate).
Fund | Contractual Unitary Fee |
RiverFront Asset Allocation Aggressive | 0.25% |
RiverFront Asset Allocation Growth | 0.25% |
RiverFront Asset Allocation Growth & Income | 0.25% |
RiverFront Asset Allocation Moderate | 0.25% |
RiverFront Asset Allocation Income & Growth | 0.25% |
Pursuant to an Investment Sub-advisory Agreement, AAI pays the Sub-Advisors of the Funds listed below an annual sub-advisory management fee which is based on each Fund’s average daily assets. AAI is required to pay all fees due to each Sub-Advisor out of the management fee AAI receives from each Fund listed below. The following table reflects the Funds’ contractual sub-advisory fee rates.
Fund | Average Daily Net Assets of the Fund | Contractual Sub-Advisory Fee |
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | All Asset Levels | 0.75% |
ALPS | Kotak India Growth Fund | First $50 Million | 1.15% |
Over $50 Million | 1.05% | |
ALPS | Smith Short Duration Bond Fund | All Asset Levels | 0.29% |
ALPS | Smith Total Return Bond Fund | All Asset Levels | 0.42% |
ALPS | Red Rocks Listed Private Equity Fund | All Asset Levels | 0.57% |
ALPS | WMC Research Value Fund | First $250 Million | 0.50% |
$250 Million - $500 Million | 0.40% | |
Over $500 Million | 0.30% | |
Clough China Fund | All Asset Levels | 0.90% |
Effective November 7, 2018, Wellington Management Company, LLP temporarily and voluntarily reduced the sub-advisory fee rate on the Fund’s daily net assets of $0 to $250 million by ten basis points. This reduction will remain in effect for 12 months unless terminated earlier by Wellington Management Company, LLP. The other tiers have remained unchanged.
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund
AAI and CoreCommodity Management LLC have contractually agreed to limit the amount of the Fund’s total annual expenses, exclusive of distribution and service (12b-1) fees, shareholder services fees, acquired fund fees and expenses, brokerage commissions, interest expense, taxes and extraordinary expenses that exceed the following annual rates below. The fee waiver agreement is in effect through February 28, 2020 and is reevaluated on an annual basis.
179| April 30, 2019
Notes to Financial Statements
April 30, 2019 (Unaudited)
ALPS | Kotak India Growth Fund
Prior to April 1, 2017, AAI and Kotak Mahindra (UK) Limited have contractually agreed to limit the amount of the Fund’s total annual expenses, exclusive of distribution and service (12b-1) fees, shareholder services fees, acquired fund fees and expenses, brokerage expenses, interest expenses, taxes and extraordinary expenses that exceed the following annual rates below. The fee waiver agreement is in effect through February 28, 2020 and is reevaluated on an annual basis. Effective April 1, 2017, Kotak entered into a Novation Agreement with the Fund, AAI and Kotak Mahindra Asset Management (Singapore) Pte. Ltd. (“KMAMS”), another wholly owned subsidiary of Kotak Mahindra Bank Limited, whereby KMAMS will assume all of Kotak’s rights and obligations under the current Sub-Advisory Agreement.
ALPS | Smith Short Duration Bond Fund
AAI and Smith Capital Investors, LLC have agreed contractually to limit the amount of the Fund’s total annual expenses, exclusive of distribution and service (12b-1) fees, shareholder service fees, acquired fund fees and expenses, brokerage expenses, interest expenses, taxes and extraordinary expenses that exceed the following annual rates below. The fee waiver agreement is in effect through February 28, 2020 and is reevaluated on an annual basis.
ALPS | Smith Total Return Bond Fund
AAI and Smith Capital Investors, LLC have agreed contractually to limit the amount of the Fund’s total annual expenses, exclusive of distribution and service (12b-1) fees, shareholder service fees, acquired fund fees and expenses, brokerage expenses, interest expenses, taxes and extraordinary expenses that exceed the following annual rates below. The fee waiver agreement is in effect through February 28, 2020 and is reevaluated on an annual basis.
ALPS | Red Rocks Listed Private Equity Fund
AAI and Red Rocks Capital LLC have contractually agreed to limit the amount of the Fund’s total annual expenses, exclusive of distribution and service (12b-1) fees, acquired fund fees and expenses, shareholder service fees, brokerage expenses, interest expense, taxes and extraordinary expenses that exceed the following annual rates below. The fee waiver agreement is in effect through February 28, 2020 and is reevaluated on an annual basis.
ALPS | WMC Research Value Fund
AAI has contractually agreed to limit the amount of the Fund’s total annual expenses, exclusive of distribution and service (12b-1) fees, shareholder service fees, acquired fund fees and expenses, brokerage expenses, interest expense, taxes and extraordinary expenses that exceed the following annual rates below. The fee waiver agreement is in effect through February 28, 2020 and is reevaluated on an annual basis.
Clough China Fund
AAI has contractually agreed to limit the amount of the Fund’s total annual expenses, exclusive of acquired fund fees and expenses, interest, taxes, brokerage costs and commissions, dividend and interest expense on short sales, litigation, indemnification and extraordinary expenses as determined under generally accepted accounting principles that exceed the following annual rates below. The fee waiver agreement is in effect through February 28, 2020 and is reevaluated on an annual basis.
Expense limitation ratios from the current agreements are listed below. Fees waived or reimbursed for the six-month period ended April 30, 2019 are disclosed on the Statement of Operations or Consolidated Statement of Operations.
Fund* | Investor Class | Class A | Class C | Class I | Class R |
ALPS | CoreCommodity ManagementCompleteCommodities®Strategy Fund | 1.05% | 1.05% | 1.05% | 1.15% | N/A |
ALPS | Kotak India Growth Fund | 1.60% | 1.60% | 1.60% | 1.60% | N/A |
ALPS | Smith Short Duration Bond Fund | 0.49% | 0.49% | 0.49% | 0.49% | N/A |
ALPS | Smith Total Return Bond Fund | 0.67% | 0.67% | 0.67% | 0.67% | N/A |
ALPS | Red Rocks Listed Private Equity Fund | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
ALPS | WMC Research Value Fund | 0.90% | 0.90% | 0.90% | 0.90% | N/A |
Clough China Fund | 1.95% | 1.95% | 2.70% | 1.70% | N/A |
180| April 30, 2019
Notes to Financial Statements
April 30, 2019 (Unaudited)
The Advisor(s) and each Sub-Advisor are permitted to recover expenses they have waived or reimbursed, on a class-by-class basis, through the agreements described above to the extent that expenses in later periods fall below the annual limits set forth in these agreements. The ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund, ALPS | Kotak India Growth Fund, ALPS | Smith Short Duration Bond Fund, ALPS | Smith Total Return Bond Fund, ALPS | Red Rocks Listed Private Equity Fund,ALPS | WMC Research Value Fund and Clough China Fund are not obligated to pay any deferred fees and expenses more than thirty-six months after the date on which the fees was waived or expenses were deferred, as calculated on a monthly basis. As of the six-month period ended April 30, 2019, the Advisor and Sub-Advisor(s) may seek reimbursement of previously waived and reimbursed fees as follows:
Expires | Expires | Expires | Expires | |||||||||||||||||
Fund | 10/31/2019 | 10/31/20 | 10/31/21 | 10/31/22 | Total | |||||||||||||||
ALPS | Kotak India Growth Fund - Investor Class | 49,916 | 80,686 | 75,758 | 44,700 | 251,060 | |||||||||||||||
ALPS | Kotak India Growth Fund - Class A | N/A | N/A | 42 | 71 | 113 | |||||||||||||||
ALPS | Kotak India Growth Fund - Class C | 18,335 | 22,009 | 20,620 | 16,812 | 77,776 | |||||||||||||||
ALPS | Kotak India Growth Fund - Class I | 80,121 | 162,405 | 171,092 | 102,971 | 516,589 | |||||||||||||||
ALPS | Smith Short Duration Bond Fund - Investor Class | N/A | N/A | 2,130 | 767 | 2,897 | |||||||||||||||
ALPS | Smith Short Duration Bond Fund - Class A | N/A | N/A | 1,214 | 225 | 1,439 | |||||||||||||||
ALPS | Smith Short Duration Bond Fund - Class C | N/A | N/A | 1,236 | 600 | 1,836 | |||||||||||||||
ALPS | Smith Short Duration Bond Fund - Class I | N/A | N/A | 33,418 | 35,394 | 68,812 | |||||||||||||||
ALPS | Smith Total Return Bond Fund - Investor Class | N/A | N/A | 1,061 | 1,575 | 2,636 | |||||||||||||||
ALPS | Smith Total Return Bond Fund - Class A | N/A | N/A | 1,197 | 429 | 1,626 | |||||||||||||||
ALPS | Smith Total Return Bond Fund - Class C | N/A | N/A | 1,187 | 217 | 1,404 | |||||||||||||||
ALPS | Smith Total Return Bond Fund - Class I | N/A | N/A | 37,658 | 40,940 | 78,598 | |||||||||||||||
ALPS | WMC Research Value Fund - Investor Class | 99,045 | 187,414 | 190,912 | 91,182 | 568,553 | |||||||||||||||
ALPS | WMC Research Value Fund - Class A | N/A | N/A | 16 | 19 | 35 | |||||||||||||||
ALPS | WMC Research Value Fund - Class C | 936 | 2,406 | 2,821 | 1,226 | 7,389 | |||||||||||||||
ALPS | WMC Research Value Fund - Class I | 84,412 | 160,027 | 152,537 | 69,956 | 466,932 | |||||||||||||||
Clough China Fund - Investor Class | N/A | N/A | 25,566 | 15,103 | 40,669 | |||||||||||||||
Clough China Fund - Class A | N/A | N/A | 9 | 32 | 41 | |||||||||||||||
Clough China Fund - Class C | N/A | N/A | 9,843 | 5,445 | 15,288 | |||||||||||||||
Clough China Fund - Class I | N/A | N/A | 52,087 | 29,750 | 81,837 |
The CoreCommodity Management Cayman Commodity Fund Ltd. (the “Subsidiary”) has each entered into a separate advisory agreement (, the “Subsidiary Advisory Agreement”) with CoreCommodity Management, LLC for the management of the Subsidiary’s portfolio pursuant to which the Subsidiary is obligated to pay the CoreCommodity Management, LLC a management fee at the same rate that the Fund pays the Adviser for investment advisory services provided to the Funds. CoreCommodity Management, LLC has agreed to waive the advisory fee it receives from the Fund in an amount equal to the management fee paid by the Subsidiary. This agreement may be terminated based on the terms of the Subsidiary Advisory Agreement. For the six-months ended April 30, 2019, this amount equaled $489,260 and is disclosed in the Consolidated Statements of Operations. These waivers are not subject to reimbursement/recoupment.
ALPS | CoreCommodity recovered $203 during the period ended April 30, 2019.
The Riverfront Funds do not pay a management fee or contractually limit the amount of each Fund’s total annual expenses.
ALPS Portfolio Solutions Distributor, Inc. (the “Distributor”) acts as the distributor of the Funds’ shares pursuant to a Distribution Agreement with the Trust. Shares are sold on a continuous basis by the Distributor, as agent for the Funds, and the Distributor has agreed to use its best efforts to solicit orders for the sale of Funds’ shares, although it is not obliged to sell any particular amount of shares. The Distributor is not entitled to any compensation for its services. The Distributor is registered as a broker -dealer with the Securities and Exchange Commission. The Funds’ Distributor is also the distributor of the Select Sector SPDR exchange traded funds (the “Underlying Sector ETFs”). As required by exempted relief obtained by the Underlying Sector ETFs, the Advisor(s) will reimburse any applicable Fund an amount equal to the distribution fee received by the Distributor from the Underlying Sector ETFs attributable to such Fund’s investment in the Underlying Sector ETFs, for so long as the Distributor acts as distributor to such Fund and the Underlying Sector ETFs. There were no amounts reimbursed during the Funds’ six-month period ended April 30, 2019.
Distribution and Services (12b-1) Plans
Each Fund has adopted Distribution and Services Plans (the “Plans”) pursuant to Rule 12b-1 of the 1940 Act for its Investor Class, Class A, Class C and Class R (ALPS | Red Rocks Listed Private Equity Fund only) and Investor Class II (Asset Allocation Moderate only) shares. The Plans allows a Fund to use Investor Class, Class A, Class C, Class R and Investor Class II assets to pay fees in connection with the distribution and marketing of Investor
181| April 30, 2019
Notes to Financial Statements
April 30, 2019 (Unaudited)
Class, Class A, Class C, Class R and Investor Class II shares and/or the provision of shareholder services to Investor Class, Class A, Class C, Class R and Investor Class II shareholders. The Plans permit payment for services in connection with the administration of plans or programs that use Investor Class, Class A, Class C, Class R and Investor Class II shares of a Fund, if any, as their funding medium and for related expenses. The Plans permit a Fund to make total payments at an annual rate of up to 0.25% of a Fund’s average daily net assets attributable to its Investor Class, Class A and Investor Class II shares, 0.75% of a Fund’s average daily net assets attributable to its Class C shares and 0.50% of the ALPS | Red Rocks Listed Private Equity Fund’s average daily net assets attributable to its Class R shares.
Under the terms of the Plans, the Trust is authorized to make payments to the Distributor for remittance to financial intermediaries, as compensation for distribution and/or shareholder ongoing services performed by such entities for beneficial shareholders of the Fund. The Distributor is entitled to retain some or all fees payable under the Plans in certain circumstances, including when there is no broker of record or when certain qualification standards have not been met by the broker of record.
Shareholder Services Plans
Each Fund has adopted a shareholder services plan with respect to their Investor Class shares (the “Investor Class Shareholder Services Plan”). Under the Investor Class Shareholder Services Plan, the Funds are authorized to compensate certain financial intermediaries, including broker dealers and Fund affiliates (“Participating Organizations”), an aggregate fee in an amount not to exceed on an annual basis 0.15% of the average daily net asset value of Investor Class shares of the Funds attributable to or held in the name of the Participating Organizations pursuant to an agreement with a such Participating Organizations (the “Agreement”). Effective December 31, 2018, the Smith Funds adopted a Investor Class Shareholder Services Plan with respect to their Investor Class shares to compensate Participating Organizations an aggregate fee in an amount not to exceed on an annual basis 0.05% of the average daily net asset value of Investor Class shares. Prior to December 31, 2018, the aggregate fee in an amount not to exceed on an annual basis was 0.15% of the average daily net asset value of Investor Class shares for the Smith Funds. Each Agreement will set forth the non-distribution related shareholder services to be performed by the Participating Organizations for the benefit of a Fund’s shareholders who have elected to have such Participating Organizations service their accounts. Any amount of such payment not paid to Participating Organizations during a Fund’s fiscal year for such service activities shall be reimbursed to the Fund as soon as practicable. Shareholder Services Plan fees are included with distribution and service fees in the Statements of Operations. Investor Class Shareholder Services Plan fees recaptured pursuant to the Services Plan for the six-month period ended April 30, 2019 are included as an offset to distribution and service fees as disclosed in the Statements of Operations.
Each Fund has adopted a shareholder services plan with respect to their Class A shares (the “Class A Shareholder Services Plan”). Under the Class A Shareholder Services Plan, the Funds are authorized to compensate certain financial intermediaries, including broker dealers and Fund affiliates (“Participating Organizations”), an aggregate fee in an amount not to exceed on an annual basis 0.15% of the average daily net asset value of Class A shares of the Funds attributable to or held in the name of the Participating Organizations pursuant to an agreement with a such Participating Organizations (the “Agreement”). Effective December 31, 2018, the Smith Funds adopted a Class A Shareholder Services Plan with respect to their Class A shares to compensate Participating Organizations an aggregate fee in an amount not to exceed on an annual basis 0.05% of the average daily net asset value of Class A shares. Prior to December 31, 2018, the aggregate fee in an amount not to exceed on an annual basis was 0.15% of the average daily net asset value of Class A shares for the Smith Funds. Each Agreement will set forth the non-distribution related shareholder services to be performed by the Participating Organizations for the benefit of a Fund’s shareholders who have elected to have such Participating Organizations service their accounts. Any amount of such payment not paid to Participating Organizations during a Fund’s fiscal year for such service activities shall be reimbursed to the Fund as soon as practicable. Shareholder Services Plan fees are included with distribution and service fees in the Statements of Operations. Class A Shareholder Services Plan fees recaptured pursuant to the Services Plan for the six-month period ended April 30, 2019 are included as an offset to distribution and service fees as disclosed in the Statements of Operations.
Each Fund has adopted a shareholder services plan with respect to its Class C shares (the “Class C Shareholder Services Plan”). Under the Class C Shareholder Services Plan, the Funds are authorized to pay banks and their affiliates and other institutions, including broker-dealers and Fund affiliates (“Participating Organizations”), an aggregate fee in an amount not to exceed on an annual basis 0.25% for Class C shares of the average daily net asset value of the Class C shares attributable to or held in the name of a Participating Organization for its clients as compensation for providing shareholder service activities, which do not include distribution services, pursuant to an agreement with a Participating Organization. Any amount of such payment not paid to Participating Organizations during a Fund’s fiscal year for such service activities shall be reimbursed to the Fund as soon as practicable after the end of the fiscal year. Class C Shareholder Services Plan fees are included with distribution and service fees on the Statements of Operations.
Certain intermediaries may charge networking, omnibus account or other administrative fees with respect to transactions in shares of each Fund. Transactions may be processed through the National Securities Clearing Corporation or similar systems or processed on a manual basis. These fees generally are paid by the Fund to the Distributor, which uses such fees to reimburse intermediaries. In the event an intermediary receiving payments from the Distributor on behalf of the Fund converts from a networking structure to an omnibus account structure or otherwise experiences increased costs, fees borne by the Fund may increase. Networking fees are shown in the Statements of Operations, if applicable to the Fund.
182| April 30, 2019
Notes to Financial Statements
April 30, 2019 (Unaudited)
ALPS Fund Services, Inc. (“ALPS”) serves as administrator to the Funds and the Funds have agreed to pay expenses incurred in connection with their administrative activities. Pursuant to an Administrative Agreement, ALPS provides operational services to the Funds including, but not limited to, fund accounting and fund administration and generally assists in the Funds’ operations. Officers of the Trust are employees of ALPS. The Funds’ administration fee is accrued on a daily basis and paid monthly. Administration fees paid by the Funds for the six-month period ended April 30, 2019 are disclosed in the Statement of Operations.
ALPS is reimbursed by the Funds for certain out-of-pocket expenses.
Trustees
The fees and expenses of the independent trustees of the Board are presented in the Statements of Operations.
9. INDEMNIFICATIONS
Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liability arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that may contain general indemnification clauses which may permit indemnification to the extent permissible under applicable law. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.
10. RECENT ACCOUNTING PRONOUCEMENTS
In August 2018, the FASB issued ASU 2018-13, which changes the fair value measurement disclosure requirements of FASB ASC Topic 820, Fair Value Measurement. The update to Topic 820 includes new, eliminated, and modified disclosure requirements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods. Early adoption is permitted for any eliminated or modified disclosures. The Funds have elected to early adopt the eliminated and modified disclosures effective with the financial statements prepared as of April 30, 2019.
11. SUBSEQUENT EVENTS
At a meeting held on June 11-12, 2019, the Board of Trustees of the Trust approved Agreements and Plans of Reorganization providing for the reorganization of RiverFront Asset Allocation Income & Growth and RiverFront Asset Allocation Growth, each a series of the Trust, into RiverFront Asset Allocation Moderate and RiverFront Asset Allocation Growth & Income, respectively. The closing date of the reorganizations is expected to be on or about August 5, 2019. Each reorganization is subject to closing conditions, and there is no assurance that either reorganization will occur.
183| April 30, 2019
Additional Information
April 30, 2019 (Unaudited)
1. FUND HOLDINGS
The Funds’ portfolio holdings are made available semi-annually in shareholder reports within 60 days after the close of the period for which the report is being made, as required by federal securities laws. The Funds also file monthly portfolio holdings on Form N-PORT on a quarterly basis, with the schedule of portfolio holdings filed on Form N-PORT for the third month of each Fund’s fiscal quarter made publicly available 60 days after the end of the Funds’ fiscal quarter.
2. FUND PROXY VOTING POLICIES, PROCEDURES AND SUMMARIES
Fund policies and procedures used in determining how to vote proxies and information regarding how each of the Funds voted proxies relating to portfolio securities during the most recent prior 12-month period ending June 30 are available without charge, (1) upon request, by calling (toll-free) (866) 759-5679 and (2) on the SEC’s website at http://www.sec.gov.
184| April 30, 2019
Privacy Policy
April 30, 2019 (Unaudited)
FACTS | WHAT DO THE FUNDS DO WITH YOUR PERSONAL INFORMATION? |
WHY? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
WHAT? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:
• Social Security number and account transactions • Account balances and transaction history • Wire transfer instructions |
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 the Funds choose to share; and whether you can limit this sharing. |
REASONS WE CAN SHARE YOUR PERSONAL INFORMATION | DO THE 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 | No | We do not share. |
For joint marketing with other financial companies | No | We do not 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 do not share. |
For non-affiliates to market to you | No | We do not share. |
185| April 30, 2019
Privacy Policy
April 30, 2019 (Unaudited)
WHO WE ARE | |
Who is providing this notice? | Financial Investors Trust |
WHAT WE DO | |
How do the 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. |
How do the Funds collect my personal information? | We collect your personal information, for example, when you
• open an account • provide account information or give us your contact information • make a wire transfer or deposit money |
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. |
Non-affiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
• The Funds do 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.
• The Funds do not jointly market. |
OTHER IMPORTANT INFORMATION | |
California Residents | If your account has a California home address, your personal information will not be disclosed to nonaffiliated third parties except as permitted by applicable California law, and we will limit sharing such personal information with our affiliates to comply with California privacy laws that apply to us. |
Vermont Residents | The State of Vermont requires financial institutions to obtain your consent prior to sharing personal information that they collect about you with affiliated companies and nonaffiliated third parties other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with nonaffiliated third parties or other affiliated companies unless you provide us with your written consent to share such information. |
QUESTIONS? | |
QUESTIONS | Call 1-866-759-5679 or go to www.alpsfunds.com |
186| April 30, 2019
Intentionally Left Blank
Item 2. | Code of Ethics. |
Not applicable to this report.
Item 3. | Audit Committee Financial Expert. |
Not applicable to this report.
Item 4. | Principal Accountant Fees and Services. |
Not applicable to this report.
Item 5. | Audit Committee of Listed Registrants. |
Not applicable to the Registrant.
Item 6. | Investments. |
(a) | Schedule of Investments is included as part of the Reports to Stockholders filed under Item 1 of this Form N-CSR. |
(b) | Not applicable. |
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable to the Registrant.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable to the Registrant.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable to the Registrant.
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, where those changes were implemented after the Registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K, or this Item.
Item 11. | Controls and Procedures. |
(a) | The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report. |
(b) | There was no change in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable to the Registrant.
Item 13. | Exhibits. |
(a)(1) | Not applicable to this report. |
(a)(2) | The certifications required by Rule 30a-2(a) of the Investment Company Act of 1940, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto as Exhibit 99.Cert. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | The certifications by the Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) of the Investment Company Act of 1940, as amended, and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as Exhibit 99.906Cert. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FINANCIAL INVESTORS TRUST
By: | /s/ Brad Swenson | |
Brad Swenson (Principal Executive Officer) | ||
President | ||
Date: | July 5, 2019 |
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.
FINANCIAL INVESTORS TRUST
By: | /s/ Brad Swenson | |
Brad Swenson (Principal Executive Officer) | ||
President | ||
Date: | July 5, 2019 | |
By: | /s/ Kimberly R. Storms | |
Kimberly R. Storms (Principal Financial Officer) | ||
Treasurer | ||
Date: | July 5, 2019 |