Sound Enhanced Fixed Income ETF
Ticker: SDEF

Sound Equity Income ETF
Ticker: SDEI

Semi-Annual Report

May 31, 2022
(Unaudited)

Sound Income ETFs

TABLE OF CONTENTS

Portfolio Allocation

1

Schedules of Investments

2

Statements of Assets and Liabilities

5

Statements of Operations

6

Statements of Changes in Net Assets

7

Financial Highlights

9

Notes to Financial Statements

11

Expense Examples

20

Additional Information

21

This report is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by an effective prospectus.

1

Sound Income ETFs

Sound Enhanced Fixed Income ETF PORTFOLIO ALLOCATION at May 31, 2022 (Unaudited)

Sector/Security Type

% of Net Assets

Financials

 55.6%

Exchange Traded Funds

10.5

Energy

8.4

Utilities

6.9

Communications

4.2

Consumer, Cyclical

3.9

Closed-End Funds

2.9

Basic Materials

2.2

Industrial

2.2

Technology

1.8

Cash & Cash Equivalents (1) 

1.4

Total

100.0%

Sound Equity Income ETF PORTFOLIO ALLOCATION at May 31, 2022 (Unaudited)

Sector 

% of Net Assets

Consumer, Non-Cyclical

 24.1%

Financials

17.7

Energy

15.2

Technology

10.5

Communications

8.9

Consumer, Cyclical

8.5

Basic Materials

7.6

Industrial

3.7

Utilities

3.1

Cash & Cash Equivalents (1) 

0.7

Total

100.0%

(1)Represents cash, short-term investments, and other assets in excess of liabilities.

Sound Enhanced Fixed Income ETF

2

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

Schedule of Investments at May 31, 2022 (Unaudited) 

Shares

Value

Closed-End Funds — 2.9%

AllianceBernstein Global High Income Fund, Inc. 

62,525

$645,883

Total Closed-End Funds

(Cost $748,050)

645,883

 

Common Stocks — 28.8%

 

Investment Companies — 14.5%

Ares Capital Corp. 

36,751

712,235

Golub Capital BDC, Inc. 

44,150

624,281

PennantPark Floating Rate Capital Ltd. 

58,556

688,033

Sixth Street Specialty Lending, Inc. 

29,499

610,334

WhiteHorse Finance, Inc. 

45,718

647,824

 

3,282,707

Private Equity — 2.7%

Hercules Capital, Inc. 

42,778

602,314

 

Real Estate Investment Trusts (REITs) — 11.6%

Alpine Income Property Trust, Inc. 

13,288

251,808

Brandywine Realty Trust 

21,021

234,384

Gaming and Leisure Properties, Inc. 

1,607

75,240

Global Medical REIT, Inc. 

18,767

243,971

Global Net Lease, Inc. 

14,358

207,760

Medical Properties Trust, Inc. 

11,532

214,265

Omega Healthcare Investors, Inc. 

6,616

196,958

Plymouth Industrial REIT, Inc. 

13,599

276,196

Simon Property Group, Inc. 

2,892

331,568

Spirit Realty Capital, Inc. 

6,076

255,131

VICI Properties, Inc. 

10,643

328,336

 

2,615,617

Total Common Stocks

(Cost $7,195,379)

6,500,638

 

Principal Amount

Corporate Bonds — 24.7%

 

Auto Parts & Equipment — 1.8%

American Axle & Manufacturing, Inc.

5.000%, 10/01/2029 

$447,000

398,051

 

Chemicals — 2.2%

Olin Corp.

5.125%, 09/15/2027 

489,000

490,059

 

Principal
Amount

Value

Corporate Bonds — 24.7% (Continued)

 

Computers — 1.8%

Dell, Inc.

6.500%, 04/15/2038 

$376,000

$397,148

 

Gas — 2.1%

National Fuel Gas Co.

4.750%, 09/01/2028 

489,000

487,033

 

Insurance — 2.1%

Radian Group, Inc.

4.875%, 03/15/2027 

489,000

475,814

 

Lodging — 2.1%

Hilton Domestic Operating
Co., Inc.

4.875%, 01/15/2030 

482,000

473,710

 

Media — 2.1%

AMC Networks, Inc.

4.750%, 08/01/2025 

490,000

483,564

 

Miscellaneous Manufacturers — 2.1%

Trinity Industries, Inc.

4.550%, 10/01/2024 

489,000

486,905

 

Oil & Gas — 4.4%

Apache Corp.

5.100%, 09/01/2040 

489,000

457,166

Murphy Oil Corp.

5.875%, 12/01/2027 

538,000

545,785

 

1,002,951

Pipelines — 4.0%

EQM Midstream Partners L.P.

5.500%, 07/15/2028 

441,000

418,269

Targa Resources Partners LP /
Targa Resources Partners
Finance Corp.

5.000%, 01/15/2028 

489,000

479,205

 

897,474

Total Corporate Bonds

(Cost $6,006,474)

5,592,709

 


Sound Enhanced Fixed Income ETF

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

3

SCHEDULE OF INVESTMENTS at May 31, 2022 (Unaudited) (Continued)

Shares

Value

Exchange Traded Funds — 10.6%

Invesco Emerging Markets Sovereign Debt ETF 

25,529

$523,600

iShares 0-5 Year High Yield Corporate Bond ETF 

16,170

694,340

iShares J.P. Morgan EM High Yield Bond ETF 

15,827

590,822

VanEck Emerging Markets High Yield Bond ETF 

30,773

584,995

Total Exchange Traded Funds

(Cost $2,791,724)

2,393,757

 

Preferred Stocks — 31.6%

 

Banks — 13.7%

Associated Banc-Corp 

5.625%, 9/15/25 (1) 

21,315

506,871

Bank of America Corp. 

5.375%, 6/25/24 (1) 

22,442

523,572

JPMorgan Chase & Co. 

6.000%, 3/01/24 (1) 

21,511

559,716

Morgan Stanley 

4.875%, 1/15/25 (1) 

23,080

517,684

Truist Financial Corp. 

5.250%, 6/01/25 (1) 

22,051

512,906

Wells Fargo & Co. 

4.700%, 12/15/25 (1) 

23,472

479,768

 

3,100,517

Diversified Financial Services — 2.1%

Capital One Financial Corp. 

4.800%, 6/01/25 (1) 

23,619

482,772

 

Electric — 4.7%

CMS Energy Corp. 

5.875%, 3/01/79

21,904

557,019

The Southern Co. 

4.950%, 1/30/80

22,345

510,360

 

1,067,379

Insurance — 7.0%

AEGON Funding Co., LLC 

5.100%, 12/15/49

22,589

522,031

The Allstate Corp. 

5.100%, 10/15/24 (1) 

21,952

530,580

MetLife, Inc. 

4.750%, 3/15/25 (1) 

22,491

525,165

 

 

1,577,776

Shares

Value

Preferred Stocks — 31.6% (Continued)

 

Real Estate Investment Trusts (REITs) — 2.0%

UMH Properties, Inc. 

6.75%, 7/26/22 (1) 

17,936

$451,987

 

Telecommunications — 2.1%

AT&T, Inc. 

4.750%, 2/18/25 (1) 

22,786

465,746

Total Preferred Stocks

(Cost $8,158,343)

7,146,177

 

Short-Term Investments — 0.7%

Monet Market Fund — 0.7%

First American Government Obligations Fund, Class X, 0.658% (2) 

167,053

167,053

Total Short-Term Investments

(Cost $167,053)

167,053

 

Total Investments in Securities — 99.3%

(Cost $25,067,023)

22,446,217

Other Assets in Excess of Liabilities — 0.7%

154,526

Total Net Assets — 100.0%

$22,600,743

(1)Perpetual call date security. Date shown is next call date.

(2)The rate quoted is the annualized seven-day effective yield as of May 31, 2022.


Sound Equity Income ETF

4

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

Schedule of Investments at May 31, 2022 (Unaudited) 

Shares

Value

Common Stocks — 99.3%

 

Advertising — 3.7%

Omnicom Group, Inc. 

9,502

$708,944

 

Apparel — 2.9%

Hanesbrands, Inc. 

46,319

549,807

 

Banks — 6.0%

First Horizon Corp. 

23,212

529,930

M&T Bank Corp. 

3,449

620,716

 

1,150,646

Chemicals — 7.6%

Dow, Inc. 

6,863

466,547

LyondellBasell Industries NV 

8,682

991,918

 

1,458,465

Commercial Services — 6.4%

H&R Block, Inc. 

34,832

1,227,480

 

Computers — 8.2%

HP, Inc. 

14,091

547,294

International Business Machines Corp. 

4,500

624,780

Seagate Technology Holdings PLC 

4,771

403,961

 

1,576,035

Cosmetics & Personal Care — 2.1%

Unilever PLC - ADR

8,137

393,261

 

Diversified Financial Services — 3.0%

Franklin Resources, Inc. 

21,143

572,552

 

Electric — 3.1%

Entergy Corp. 

2,577

310,065

NorthWestern Corp. 

4,706

288,336

 

598,401

Healthcare — Products — 2.1%

Patterson Companies, Inc. 

12,829

405,268

 

Housewares — 1.8%

Newell Brands, Inc. 

16,006

343,169

 

Insurance — 5.2%

Principal Financial Group, Inc. 

13,720

1,000,600

 

Office & Business Equipment — 2.2%

Xerox Holdings Corp. 

22,554

424,466

 

Oil & Gas — 8.1%

TotalEnergies SE - ADR

10,476

615,989

Valero Energy Corp. 

7,148

926,381

 

1,542,370

Shares

Value

Common Stocks — 99.3% (Continued)

 

Packaging & Containers — 3.7%

Greif, Inc. - Class B 

11,819

$699,803

 

Pharmaceuticals — 13.5%

AbbVie, Inc. 

6,155

907,062

GSK PLC - ADR

8,215

360,639

Johnson & Johnson 

2,380

427,281

Pfizer, Inc. 

16,864

894,467

 

2,589,449

Pipelines — 7.2%

Enbridge, Inc. 

19,068

879,988

ONEOK, Inc. 

7,396

487,027

 

1,367,015

Retail — 3.8%

MSC Industrial Direct Co., Inc. - Class A 

3,640

309,145

Walgreens Boots Alliance, Inc. 

9,548

418,489

 

727,634

Savings & Loans — 3.5%

New York Community Bancorp, Inc. 

66,228

660,955

 

Telecommunications — 5.2%

AT&T, Inc. 

27,850

592,927

Cisco Systems, Inc. 

8,723

392,971

 

985,898

Total Common Stocks

(Cost $17,254,686)

18,982,218

 

Short-Term Investments — 0.4%

 

Monet Market Fund — 0.4%

First American Government Obligations Fund, Class X, 0.658% (1) 

82,209

82,209

Total Short-Term Investments

(Cost $82,209)

82,209

 

Total Investments in Securities — 99.7%

(Cost $17,336,895)

19,064,427

Other Assets Less Liabilities — 0.3%

57,705

Net Assets — 100.0%

$19,122,132

ADRAmerican Depositary Receipt.

(1)The rate shown is the annualized seven-day effective yield as of May 31, 2022.


Sound Income ETFs

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

5

STATEMENTS OF ASSETS AND LIABILITIES at May 31, 2022 (Unaudited)

Sound
Enhanced
Fixed Income
ETF

Sound
Equity Income
ETF

Assets:

Investments in securities, at value (Note 2)

$22,446,217

$19,064,427

Receivables:

Dividends and interest

163,635

64,668

Total assets

22,609,852

19,129,095

 

Liabilities:

Payables:

Management fees (Note 4)

9,109

6,963

Total liabilities

9,109

6,963

Net Assets

$22,600,743

$19,122,132

 

Components of Net Assets:

Paid-in capital

$25,232,705

$17,385,013

Total distributable (accumulated) earnings (losses)

(2,631,962

)

1,737,119

Net assets

$22,600,743

$19,122,132

 

Net Asset Value (unlimited shares authorized):

Net assets

$22,600,743

$19,122,132

Shares of beneficial interest issued and outstanding

1,225,000

700,000

Net asset value

$18.45

$27.32

 

Cost of investments

$25,067,023

$17,336,895

Sound Income ETFs

6

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

STATEMENTS OF OPERATIONS For the Six-Months Ended May 31, 2022 (Unaudited)

Sound
Enhanced
Fixed Income
ETF

Sound
Equity Income
ETF

Investment Income:

Dividend income (net of foreign withholding tax of $- and $7,916, respectively)

$518,542

$300,064

Interest income

97,214

77

Total investment income

615,756

300,141

 

Expenses:

Management fees (Note 4)

50,137

35,579

Total expenses

50,137

35,579

Net investment income (loss)

565,619

264,562

 

Realized and Unrealized Gain (Loss) on Investments:

Net realized gain (loss) on investments

(14,814

)

768

Change in net unrealized appreciation/depreciation on investments

(2,451,606

)

1,790,769

Net realized and unrealized gain (loss) on investments

(2,466,420

)

1,791,537

Net increase (decrease) in net assets resulting from operations

$(1,900,801

)

$2,056,099

Sound Enhanced Fixed Income ETF

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

7

STATEMENT OF CHANGES IN NET ASSETS

Six-Months
Ended
May 31, 2022
(Unaudited)

Period Ended
November 30,
2021
(1) 

  

 

Increase (Decrease) in Net Assets From:

 

Operations:

Net investment income (loss)

$565,619

$213,500

Net realized gain (loss) on investments

(14,814

)

(17,961

)

Change in net unrealized appreciation/depreciation on investments

(2,451,606

)

(169,200

)

Net increase (decrease) in net assets resulting from operations

(1,900,801

)

26,339

 

Distributions to Shareholders:

Net distributions to shareholders

(544,000

)

(226,382

)

 

Capital Share Transactions:

Net increase (decrease) in net assets derived from net changes in outstanding shares (2)

11,698,485

13,547,102

Total increase (decrease) in net assets

9,253,684

13,347,059

 

Net Assets:

Beginning of period

13,347,059

End of period

$22,600,743

$13,347,059

 

(1)The Fund commenced operations on December 30, 2020. The information presented is from December 30, 2020 to November 30, 2021.

(2)Summary of share transactions is as follows:

Six-Months Ended
May 31, 2022
(Unaudited)

Period Ended
November 30, 2021
(1) 

Shares

Value

Shares

Value

Shares sold

575,000

$11,697,440

650,000

$13,544,572

Shares redeemed

Variable fees

1,045

2,530

Net increase (decrease)

575,000

$11,698,485

650,000

$13,547,102

Sound Equity Income ETF

8

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

STATEMENT OF CHANGES IN NET ASSETS

Six-Months
Ended
May 31, 2022
(Unaudited)

Period Ended
November 30,
2021
(1) 

 

Increase (Decrease) in Net Assets From:

 

Operations:

Net investment income (loss)

$264,562

$240,214

Net realized gain (loss) on investments

768

17,040

Change in net unrealized appreciation/depreciation on investments

1,790,769

(63,006

)

Net increase (decrease) in net assets resulting from operations

2,056,099

194,248

 

Distributions to Shareholders:

Net distributions to shareholders

(290,850

)

(222,378

)

 

Capital Share Transactions:

Net increase (decrease) in net assets derived from net changes in outstanding shares (2)

5,206,478

12,178,535

Total increase (decrease) in net assets

6,971,727

12,150,405

 

Net Assets:

Beginning of period

12,150,405

End of period

$19,122,132

$12,150,405

 

(1)The Fund commenced operations on December 30, 2020. The information presented is from December 30, 2020 to November 30, 2021.

(2)Summary of share transactions is as follows:

Six-Months Ended
May 31, 2022
(Unaudited)

Period Ended
November 30, 2021
(1) 

Shares

Value

Shares

Value

Shares sold

200,000

$5,206,478

500,000

$12,178,535

Shares redeemed

Net increase (decrease)

200,000

$5,206,478

500,000

$12,178,535

Sound Enhanced Fixed Income ETF

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

9

FINANCIAL HIGHLIGHTS For a capital share outstanding throughout the period

Six-Months
Ended
May 31, 2022
(Unaudited)

Period Ended
November 30,
2021
(1) 

 

Net asset value, beginning of period

$20.53

$20.00

 

Incom