TABLE OF CONTENTS

The Funds file their complete schedules of investments with the Securities and Exchange Commission (the “SEC”) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Funds’ Form N-PORT reports are available on the SEC’s website at https://www.sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to Fund securities, as well as information relating to how the Fund voted proxies relating to Fund securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 1-855-457-3637; and (ii) on the SEC’s website at https://www.sec.gov.

Dear Shareholder:

While 2022 did not provide positive returns within the US equity markets, it was an exciting period of innovative change at Strategas Asset Management LLC (SAM). Founded in 2014, SAM is a research-driven manager of macro thematic asset management strategies, which we derive directly from Strategas Securities LLC (Strategas), a leading institutional brokerage firm focused on providing macro research and advisory services to institutional debt and equity investors, Strategas was once again the top ranked macro-only research shop by Institutional Investor’s 2022 All America Research Survey. Since its founding, SAM has provided clients with a suite of managed portfolios and global asset allocation sleeves to assist institutional investors, family offices, and financial advisors in implementing the tactical and thematic idea generation of Strategas’ macro-oriented research. However, at the beginning of 2022, we expanded our offerings to include two unique exchange traded funds (ETFs).

Since Strategas’ creation in 2006, our portfolio management team has provided our clients with stock baskets constructed with the goal of providing timely and direct exposure to specific macro investment themes. Strategas’ thematic portfolio concepts are the culmination of our in-depth analysis from our aforementioned Institutional Investor ranked analysts and our portfolio management teams’ construction process. Recognizing the challenges around investing in viable themes while also aware that many single-themed ETFs could trigger ill-timed selling when a particular theme has run its course, we developed two new products with a built-in thematic rotation component.

Our first ETF, the Strategas Global Policy Opportunities Fund (NYSE:SAGP), incorporates a policy thematic rotation component whereby we combine our proprietary lobbying intensity investment model with our recommended asset allocation. The result is a portfolio leveraged to the public policy initiatives viewed as having the greatest positive impact on corporate profits with tactical tilts toward the asset classes viewed as most favorable, i.e., domestic vs. international, large vs. mid & small-caps.

Our second ETF offering launched in 2022, the Strategas Macro Thematic Opportunities Fund (NYSE:SAMT), is an actively managed fund which leverages Strategas’ industry-leading macro research to employ our “thematic rotation” strategy, investing in the 3 to 5 themes in which we have the highest conviction. Rather than investing in a single theme, the Fund employs a thematic rotation approach whereby it adjusts positioning based on the shifts in macro trends to ensure the integrity of each theme’s investment thesis and the relevancy of its constituents.

1

While most equity market indices had notable negative returns over the past year (i.e., the S&P 500 dropped approximately 19.4% in 2022), we were still able to successfully manage our two new ETF offerings. Both funds outperformed their relative benchmarks while also providing a steady increase in assets as noted in the below chart.

The following pages provide a more in-depth performance review for each of our newly launched funds during 2022. For more information about Strategas Asset Management or our ETFs, please visit https://www.strategasasset.com/ or https://www.strategasetfs.com/, respectively. Should you have any questions, please do not hesitate to reach out.

Finally, we would like to thank our investors for their trust in Strategas Asset Management and are thankful to have this opportunity to provide you with our two thematic ETFs.

Sincerely,

Nicholas Bohnsack

President & Chief Executive Officer

Strategas Asset Management, LLC

2

Management’s Discussion of Fund Performance: Strategas Global Policy Opportunities Fund (NYSE:SAGP)

The Strategas Global Policy Opportunities ETF (SAGP) is an actively managed fund, which combines Strategas Securities’ proprietary lobbying intensity investment return framework with Strategas Securities’ asset allocation model. An innovation from Strategas’ Head of Policy Research, Dan Clifton, who considers lobbying a non-traditional and largely unrecognized factor in company analysis. By utilizing publicly available lobbying data in our proprietary formula, Strategas Asset Management (SAM) seeks to capitalize on what it perceives as a lack of consideration given to lobbying in traditional financial analysis and lobbying’s potential to sway policy outcomes in companies’ favor. SAM utilizes publicly disclosed corporate lobbying data filed pursuant to the U.S. Lobbying Disclosure Act of 1995 to rank companies in the S&P 500 Index, the S&P 1000 Index, and the MSCI All Country World Index (ACWI) based on a proprietary formula that measures the degree to which a company engages in U.S. lobbying activity, which SAM refers to as “lobbying intensity.”

As of December 31, 2022, and since SAGP’s January 24, 2022, inception date, the fund has returned -5.4% while its benchmark, The ACWI, has returned -12.9% during the same period. An outperformance of approximately 750 basis points.

SAGP invests across market capitalizations and geographies, and we are pleased that in 2022 all three buckets of our asset allocation outperformed their respective benchmarks. This includes our US Large Cap (S&P 500 benchmark), US Small and Mid Cap (S&P 600 and 400 benchmarks), and non-US (All Country World Index ex-US) holdings.

We do not believe it was a coincidence that with such a large upheaval in government policy, our portfolio of stocks designed to benefit from changes in public policy had such a strong relative performance in 2022.

Portfolio Highlights:

SAGP benefitted by being positioned for a number of themes that played out in 2022:

3

4

The MSCI ACWI (All Country World Index) 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 46 country indices comprising 23 developed and 23 emerging market country indices.

Disclosures: The performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance data for the most recent month-end is available above. For most recent data please call (855) 457-3637 or visit strategasetfs.com.

5

Comparison of Change in the Value of a $10,000 Investment in the Strategas Global Policy Opportunities ETF versus MSCI ACWI Index.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

The Fund’s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower.

Please note that one cannot invest directly in an unmanaged index.

There are no assurances that the Fund will meet its stated objectives.

The Fund’s holdings and allocations are subject to change, because it is actively managed and should not be considered recommendations to buy individual securities.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative index on page 5.

6

Management’s Discussion of Fund Performance: Strategas Macro Thematic Opportunities Fund (NYSE:SAMT)

The Strategas Macro Thematic Opportunities ETF (SAMT) is an actively managed fund, which leverages Strategas Securities’ industry-leading macro research to identify durable intermediate-term investment themes and allocates to those with which the Firm has the highest conviction. The Fund is invested in three to five macro themes at any given time, with the constituents of each macro theme in the portfolio composed of U.S.-listed stocks across the market capitalization spectrum. SAMT’s thematic positioning is adjusted based on shifts in macro trends to ensure the integrity of each theme’s investment thesis and the relevancy of its constituents.

As of December 31, 2022, and since SAMT’s January 24, 2022, inception date, the fund has returned -7.0% while its benchmark, The S&P 500, has returned -11.98% during the same period. An outperformance of approximately 498 basis points.

We believe the combination of our cautious view on the market along with our foresight to rotate across different themes within the portfolio throughout a down year in the markets, has provided the ingredients for our outperformance to date. Entering 2022, we felt confident that the Federal Reserve would need to be aggressive in tightening monetary policy to combat inflation data that looked poised to last longer and go higher than many had anticipated. And along with this battle to combat inflation, investors would be faced with slowing economic growth as the cost of capital rose. Our themes of Pent-Up Travel Demand, Inflation for Longer, Quantitative Tightening and Slowing Growth morphed into De-Globalization, Energy Security, Cash Flow Aristocrats, and Recession Protection by year’s end. But throughout the rebalancing process, we were able to successfully offset any capital gains throughout the year for tax purposes.

Maxar Technologies Inc (MAXR) Occidental Petroleum Corp (OXY), Cheniere Energy Inc (LNG), Halliburton Co (HAL), and Lockheed Martin Corp (LMT), provided the most outperformance within the portfolio during 2022.

The Fund’s investment in MAXR, a cybersecurity name within our De-Globalization theme, benefited from Advent International’s agreement to buy MAXR, allowing the Fund to lock in a substantial gain last year. OXY was the Fund’s best performing stock during 2022, providing a gain of almost 59% as the oil exploration and production company benefited from a volatile year in the oil and natural gas markets. The Fund’s third highest contributor to outperformance during 2022, was Cheniere. While operating mainly in the liquefied natural gas markets, LNG first benefited from inflationary pressures on the natural gas markets in the first half of the year and has remained a top performer on the heels of limited spot market exposure due to longer term fixed contracts. Haliburton rounds out the energy names on the Fund’s 2022 best performers list as the Oil & Gas Equipment & Services company was able to increase its gross profit despite the aforementioned volatile oil and gas markets throughout the year. HAL’s declining debt along with steadily improving gross

profit and net income has provided the sound fundamentals behind the almost 28% gain we

7

have observed in the stock within the Fund’s portfolio. Finally, LMT hit a multi decade high in price late last year as the aerospace and defense company saw increased revenues on the heels of increased defense spending within our De-Globalization theme.

Intrepid Potash Inc (IPI), Newmont Corp (NEM), Edwards Lifesciences Corp (EW), Wheaton Precious Metals Corp (WPM), and MP Materials Corp (MP) round out the biggest detractors from Fund portfolio performance. After reaching a new high in price early in the year, IPI saw its revenues drop throughout the year as farmers limited spending on fertilizers due to high prices and field work delayed by extreme weather. This combination provided reasoning for IPI’s mid-year exit from the portfolio. NEM and WPM are two names within the Gold subindustry group that also hit new highs in price during the year, only to reverse and subsequently exit the portfolio as revenues dropped following gold’s precipitous decline beginning in late spring of 2022. A third name in a similar space, which also hit a new high in price around the same time as the gold names, is MP Materials. This diversified metal and mining name struggled to provide positive performance as it traded in lock step with a down market and slowing economy. Rounding out the detractors is EW, the health care equipment name which found difficulty providing upside movement in price due to macro headwinds such as rising wage costs.

8

The S&P 500 Index is a market-value weighted index consisting of 500 stocks chosen for market size, liquidity, and industry group representation, with each stock’s weight in the Index proportionate to its market value.

Disclosures: The performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance data for the most recent month-end is available above. For most recent data please call (855) 457-3637 or visit strategasetfs.com.

9

Comparison of Change in the Value of a $10,000 Investment in the Strategas Macro Thematic Opportunities ETF versus S&P 500 Index.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

The Fund’s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower.

Please note that one cannot invest directly in an unmanaged index.

There are no assurances that the Fund will meet its stated objectives.

The Fund’s holdings and allocations are subject to change, because it is actively managed and should not be considered recommendations to buy individual securities.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative index on page 9.

10

† As a percentage of the Fund’s Net Assets.

The accompanying notes are an integral part of the financial statements.

11

The accompanying notes are an integral part of the financial statements.

12

The accompanying notes are an integral part of the financial statements.

13

The accompanying notes are an integral part of the financial statements.

14

Percentages are based on Net Assets of $20,004,006.

*   Non-income producing security.

Cl — Class

PLC — Public Limited Company

As of December 31, 2022, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. generally accepted accounting principles.

For more information on valuation inputs, see Note 2 – Significant Accounting Policies in the Notes to Financial Statements.

The accompanying notes are an integral part of the financial statements.

15

† As a percentage of the Fund’s Net Assets.

The accompanying notes are an integral part of the financial statements.

16

The accompanying notes are an integral part of the financial statements.

17

Percentages are based on Net Assets of $77,549,607.

Cl — Class

The accompanying notes are an integral part of the financial statements.

18

As of December 31, 2022, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. generally accepted accounting principles.

For more information on valuation inputs, see Note 2 – Significant Accounting Policies in the Notes to Financial Statements.

The accompanying notes are an integral part of the financial statements.

19

Amounts designated as “—” are $0.

The accompanying notes are an integral part of the financial statements.

20

Amounts designated as “—” are $0.

The accompanying notes are an integral part of the financial statements.

21

Amounts designated as “—” are $0.

The accompanying notes are an integral part of the financial statements.

22

Selected Per Share Data & Ratios

For a Share Outstanding

Throughout the Period

The accompanying notes are an integral part of the financial statements.

23

Selected Per Share Data & Ratios

For a Share Outstanding

Throughout the Period

The accompanying notes are an integral part of the financial statements.

24

1. Organization:

The Advisors’ Inner Circle Fund III (the “Trust”) is organized as a Delaware statutory trust under a Declaration of Trust dated December 4, 2013. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company with 65 funds. The financial statements herein are those of the Strategas Global Policy Opportunities ETF and Strategas Macro Thematic Opportunities ETF (each a “Fund” and together, the “Funds”). The investment objective of the Funds is to seek long-term capital appreciation. The Funds are classified as a “diversified” investment company and operate as an exchange traded fund (“ETF”). Strategas Asset Management, LLC (the “Adviser”) serves as the investment adviser to the Funds. Vident Investment Advisory, LLC (the “Sub-Adviser”) serves as the sub-adviser to the Funds. The Funds commenced operations on January 24, 2022. The financial statements of the remaining funds of the Trust are presented separately. The assets of each fund are segregated, and a shareholder’s interest is limited to the fund in which shares are held.

2. Significant Accounting Policies:

The following are significant accounting policies, which are consistently followed in the preparation of the financial statements of the Funds. The Funds are an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board (“FASB”).

Use of Estimates — The preparation of financial statements in conformity with U.S generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the fair value of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and such differences could be material.

Security Valuation — Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on the NASDAQ Stock Market (the “NASDAQ”)), including securities traded over the counter, are valued at the last quoted sale price on an exchange or market (foreign or domestic) on which they are traded on valuation date (or at approximately 4:00 pm Eastern Standard Time if a security’s primary exchange is normally open at

25

that time), or, if there is no such reported sale on the valuation date, at the most recent quoted bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Prices for most securities held in the Fund are provided daily by recognized independent pricing agents. If a security price cannot be obtained from an independent, third-party pricing agent, the Fund seeks to obtain a bid price from at least one independent broker.

Securities for which market prices are not “readily available” are required to be fair valued under the 1940 Act.

In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing requirements to determine fair value in good faith for purposes of the 1940 Act. The rule permits fund boards to designate a fund’s investment adviser to perform fair-value determinations, subject to board oversight and certain other conditions. The rule also defines when market quotations are “readily available” for purposes of the 1940 Act and requires a fund to fair value a portfolio investment when a market quotation is not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth recordkeeping requirements associated with fair-value determinations. The compliance date for Rule 2a-5 and Rule 31a-4 was September 8, 2022.

Effective September 8, 2022, and pursuant to the requirements of Rule 2a-5, the Trust’s Board of Trustees (the “Board”) designated the Adviser as the Board’s valuation designee to perform fair-value determinations for the Funds through a Fair Value Committee (the “Committee”) established by the Adviser and approved new Adviser Fair Value Procedures for the Funds. Prior to September 8, 2022, fair-value determinations were performed in accordance with the Trust’s Fair Value Procedures established by the Funds’ Board and were implemented through the Committee designated by the Board.

Some of the more common reasons that may necessitate that a security be valued using fair value procedures include: the security’s trading has been halted or suspended; the security has been de-listed from a national exchange; the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; the security has not been traded for an extended period of time; the security’s primary pricing source is not able or willing to provide a price; or trading of the security is subject to local government imposed restrictions. When a security is valued

26

in accordance with the fair value procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee.

In accordance with U.S. GAAP, the Funds disclose fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement.

Federal Income Taxes — It is the Funds’ intention to qualify as a regulated investment company for Federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Internal Revenue Code of 1986 (the “Code”), as amended. Accordingly, no provisions for Federal income taxes have been made in the financial statements.

The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is “more-

27

likely-than-not” (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current period. The Funds did not record any tax provision in the current period. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities (i.e., from commencement of operations, as applicable), on-going analysis of and changes to tax laws, regulations and interpretations thereof.

As of and during the period ended December 31, 2022, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the period ended December 31, 2022, the Funds did not incur any interest or penalties.

Security Transactions and Investment Income — Security transactions are accounted for on trade date. Costs used in determining realized gains and losses on the sale of investment securities are based on the specific identification method. Dividend income and expense are recorded on the ex-dividend date. Interest income is recognized on the accrual basis from settlement date and includes the amortization of premiums and the accretion of discount. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend if such information is obtained subsequent to the ex-dividend date.

Investments in Real Estate Investment Trusts (“REITs”) — With respect to the Funds, dividend income is recorded based on the income included in distributions received from REIT investments using published REIT reclassifications including some management estimates when actual amounts are not available. Distributions received in excess of any estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from estimated amounts.

Expenses — Most expenses of the Trust can be directly attributed to a particular fund. Expenses which cannot be directly attributed to a particular fund are apportioned among the funds of the Trust based on the number of funds and/or relative net assets.

28

Cash — Idle cash may be swept into various time deposit accounts and is classified as cash on the Statements of Assets and Liabilities. The Funds maintain cash in bank deposit accounts which, at times may exceed United States federally insured limits. Amounts invested are available on the same business day.

Dividends and Distributions to Shareholders — The Funds distribute their net investment income and any net realized capital gains at least annually. All distributions are recorded on ex-dividend date.

Creation Units — The Funds issue and redeem Shares at NAV and only in large blocks of Shares (each block of Shares for a Fund is a Creation Unit of 10,000 Shares, or multiples thereof).

Except when aggregated in Creation Units, Shares are not redeemable securities of the Funds. Shares of the Funds may only be purchased or redeemed by certain Authorized Participants. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a Depository Trust Company (‘‘DTC’’) participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors will not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the Shares directly from the Funds. Rather, most retail investors will purchase Shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees when buying or selling Shares. If a Creation Unit is purchased or redeemed for cash, a higher transaction fee will be charged.

The following table discloses Creation Unit breakdown as of the period ended December 31, 2022:

29

3. Transactions with Affiliates:

Certain officers of the Trust are also employees of SEI Investments Global Funds Services (the “Administrator”), a wholly owned subsidiary of SEI Investments Company, and/or SEI Investments Distribution Co. (the “Distributor”). Such officers are paid no fees by the Trust, other than the Chief Compliance Officer (“CCO”) as described below, for serving as officers of the Trust.

The services provided by the CCO and his staff are paid for by the Trust as incurred. The services include regulatory oversight of the Trust’s Advisors and service providers as required by SEC regulations. The CCO’s services and fees have been approved by and are reviewed by the Board.

4. Administration, Distribution, Custodian and Transfer Agent Agreements:

The Funds and the Administrator are parties to an Administration Agreement under which the Administrator provides administration services to the Funds. For these services, the Administrator is paid an asset based fee, which will vary depending on the number of share classes and the average daily net assets of the Fund. For the period ended December 31, 2022, the Funds did not incur any fees for these services.

The Trust has adopted a Distribution Plan (the “Plan”) applicable to the Funds in accordance with the provisions of Rule 12b-1 under the 1940 Act, which regulates circumstances under which an investment company may directly or indirectly bear expenses relating to the distribution of its shares.

Under the Plan, the Distributor or financial intermediaries may receive up to 0.25% of the average daily net assets of each Fund as compensation for distribution and shareholder services. For the period ended December 31, 2022, the Funds did not incur any fees for these services.

Brown Brothers Harriman & Co. acts as custodian (the “Custodian”) for the Funds. The Custodian plays no role in determining the investment policies of the Funds or which securities are to be purchased or sold by the Funds.

Brown Brothers Harriman & Co. serves as the transfer agent and dividend disbursing agent for the Funds under a transfer agency agreement with the Trust.

5. Investment Advisory Agreement and Sub-Advisory Agreement:

The Adviser oversees the day-to-day operations of the Funds, subject to the general supervision and oversight of the Board. The Adviser also arranges for sub-advisory, transfer agency, custody, fund administration, distribution and all

30

other services necessary for the Funds to operate. Further, the Adviser continuously reviews, supervises, and administers the Funds’ investment program. In particular, the Adviser provides investment and operational oversight of the Sub-Adviser. The Board supervises the Adviser and establishes policies that the Adviser must follow in its day-to-day management activities. For its services to the Funds, the Adviser is entitled to a fee, which is calculated daily and paid monthly, at an annual rate of 0.65% of the average daily net assets of each Fund.

Under the investment advisory agreement between the Trust, on behalf of each Fund, and the Adviser, the Adviser has agreed to pay all expenses incurred by each Fund except for the advisory fee, interest, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, accrued deferred tax liability, extraordinary expenses, and distribution fees and expenses paid by each Fund under any distribution plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940 (the “1940 Act”). The Adviser, in turn, compensates the Sub-Adviser from the management fee it receives.

On January 19, 2022, the Adviser and Vident Investment Advisory, LLC (the “Sub-Adviser”) entered into an investment sub-advisory agreement with respect to the Funds (the “Sub-Advisory Agreement”). Pursuant to a Sub-Advisory Agreement, the Sub-Adviser is responsible for trading portfolio securities on behalf of the Funds, including selecting broker-dealers to execute purchase and sale transactions as instructed by the Adviser subject to the supervision of the Adviser and the Board.

For its services, the Sub-Adviser is entitled to a fee from the Adviser, which fee is calculated daily and paid monthly, at an annual rate of 0.07% based on the average daily net assets of each Fund for assets up to $250 million, 0.065% based on the average daily net assets of each Fund when assets exceed $250 million, and 0.06% based on the average daily net assets of each Fund when assets exceed $500 million, subject to a minimum annual fee of $35,000.

31

6. Investment Transactions:

For the period ended December 31, 2022, the purchases and sales of investment securities other than in-kind transactions, long-term U.S. Government and short-term investments, were as follows:

For the period ended December 31, 2022, there were in-kind transactions associated with creation and redemptions:

For the period ended December 31, 2022, there were no purchases or sales of long-term U.S. Government securities by the Funds.

7. Federal Tax Information:

The amount and character of income and capital gain distributions to be paid, if any, are determined in accordance with Federal income tax regulations, which may differ from U.S. GAAP. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to distributable earnings or paid-in capital, as appropriate, in the period that the differences arise.

During the period ended December 31, 2022, the following permanent differences in the components of distributable earnings primarily attributable to redemptions in-kind and reclassifications of distributions on REITs:

These reclassifications had no impact on the net assets or net values of the Fund.

32

The tax character of dividends and distributions declared during the fiscal year ended December 31, 2022 were as follows:

As of December 31, 2022, the components of accumulated loss on a tax basis were as follows:

For taxable years beginning after December 22, 2010, a registered investment company (“RIC”) is permitted to carry forward net capital losses to offset capital gains realized in later years, and the losses carried forward retain their original character as either long-term or short-term losses. Losses carried forward under these new provisions are as follows:

33

The Federal tax cost and aggregate gross unrealized appreciation and depreciation for the investments held by the Funds at December 31, 2022, were as follows: