Table of Contents |
|
|
|
Schedule of Investment |
1 |
Statement of Assets and Liabilities |
5 |
Statement of Operations | 6 |
Statements of Changes in Net Assets | 7 |
Notes to Financial Statements | 9 |
Additional Information | 17 |
Statements
in this Semi-Annual Report that reflect projections or expectations of
future financial or economic performance of the UVA Unconstrained
Medium-Term Fixed Income ETF (the “ETF” or “Fund”) and of the market in
general and statements of the Fund’s plans and objectives for future
operations are forward-looking statements. No assurance can be given that
actual results or events will not differ materially from those projected,
estimated, assumed or anticipated in any such forward-looking statements.
Important factors that could result in such differences, in addition to
the other factors noted with such forward-looking statements, include,
without limitation, general economic conditions such as inflation,
recession and interest rates. Past performance is not a guarantee of
future results.
An
investor should consider the investment objectives, risks, charges and
expenses of the ETF carefully before investing. The prospectus contains
this and other information about the ETF. A copy of the prospectus is
available at www.etfpages.com/FFIU or by calling The Nottingham Company at
800-773-3863. The prospectus should be read carefully before
investing. |
Schedule of Investments (unaudited) | ||||||||||
As of December 31,
2023 | ||||||||||
|
|
|
Principal |
|
Interest
Rate |
|
Maturity
Date |
|
Value
(Note 1) |
|
Corporate Bonds -
56.31% |
||||||||||
Communications -
3.68% |
||||||||||
Alphabet Inc |
$
500,000 |
1.900% |
8/15/2040 |
$
347,762 |
||||||
Alphabet Inc |
750,000 |
2.050% |
8/15/2050 |
469,884 |
||||||
Discovery Communications LLC |
250,000 |
3.800% |
3/13/2024 |
248,316 |
||||||
TWDC Enterprises 18 Corp |
250,000 |
3.000% |
7/30/2046 |
183,149 |
||||||
Walt Disney Co/The |
250,000 |
2.750% |
9/1/2049 |
172,345 |
||||||
Walt Disney Co/The |
300,000 |
3.500% |
5/13/2040 |
253,140 |
||||||
1,674,596 |
| |||||||||
Consumer Discretionary
- 13.06% |
||||||||||
Amazon.com Inc |
750,000 |
2.500% |
6/3/2050 |
499,709 |
||||||
Amazon.com Inc |
500,000 |
3.150% |
8/22/2027 |
480,932 |
||||||
Delta Air Lines Inc |
155,000 |
4.375% |
4/19/2028 |
150,156 |
||||||
eBay Inc |
190,000 |
2.700% |
3/11/2030 |
169,038 |
||||||
eBay Inc |
1,068,000 |
4.000% |
7/15/2042 |
885,661 |
||||||
Ford Motor Co |
250,000 |
6.375% |
2/1/2029 |
254,900 |
||||||
Ford Motor Credit Co LLC |
250,000 |
3.810% |
1/9/2024 |
249,887 |
||||||
Ford Motor Credit Co LLC |
200,000 |
4.389% |
1/8/2026 |
194,409 |
||||||
General Motors Co |
250,000 |
5.000% |
10/1/2028 |
250,391 |
||||||
McDonald's Corp |
200,000 |
3.700% |
2/15/2042 |
168,336 |
||||||
McDonald's Corp |
500,000 |
4.700% |
12/9/2035 |
493,397 |
||||||
NIKE Inc |
250,000 |
3.250% |
3/27/2040 |
210,045 |
||||||
NIKE Inc |
343,000 |
3.625% |
5/1/2043 |
297,147 |
||||||
Ralph Lauren Corp |
350,000 |
2.950% |
6/15/2030 |
317,455 |
||||||
Southwest Airlines Co |
100,000 |
2.625% |
2/10/2030 |
87,175 |
||||||
Southwest Airlines Co |
500,000 |
5.125% |
6/15/2027 |
502,372 |
||||||
Southwest Airlines Co |
250,000 |
7.375% |
3/1/2027 |
264,275 |
||||||
Starbucks Corp |
250,000 |
2.450% |
6/15/2026 |
237,671 |
||||||
Trustees of Princeton
University/The |
250,000 |
2.612% |
7/1/2026 |
237,676 |
||||||
5,950,632 |
| |||||||||
Consumer Staples -
3.27% |
||||||||||
Altria Group Inc |
400,000 |
4.250% |
8/9/2042 |
324,784 |
||||||
Altria Group Inc |
250,000 |
4.500% |
5/2/2043 |
206,224 |
||||||
Altria Group Inc |
250,000 |
5.800% |
2/14/2039 |
253,621 |
||||||
Brown-Forman Corp |
330,000 |
4.500% |
7/15/2045 |
306,589 |
||||||
Constellation Brands Inc |
200,000 |
4.650% |
11/15/2028 |
199,845 |
||||||
Dollar Tree Inc |
200,000 |
4.000% |
5/15/2025 |
196,421 |
||||||
1,487,484 |
| |||||||||
Energy -
0.72% |
||||||||||
EOG Resources Inc |
330,000 |
5.100% |
1/15/2036 |
327,075 |
||||||
Financials -
11.55% |
||||||||||
Bank of America Corp |
500,000 |
6.300% |
1/0/1900 |
501,375 |
||||||
Bank of New York Mellon Corp/The |
350,000 |
3.750% |
1/0/1900 |
302,750 |
||||||
Berkshire Hathaway Finance Corp |
300,000 |
2.850% |
10/15/2050 |
209,905 |
||||||
CBRE Services Inc |
100,000 |
2.500% |
4/1/2031 |
84,518 |
||||||
Charles Schwab Corp/The |
1,500,000 |
5.375% |
1/0/1900 |
1,471,517 |
||||||
Cincinnati Financial Corp |
250,000 |
6.125% |
11/1/2034 |
262,096 |
||||||
Cincinnati Financial Corp |
59,000 |
6.920% |
5/15/2028 |
63,074 |
||||||
Citigroup Global Markets Holdings
Inc/United States |
250,000 |
1.000% |
3/17/2031 |
192,387 |
||||||
Goldman Sachs Group Inc/The |
250,000 |
4.600% |
10/15/2033 |
242,496 |
||||||
GS Finance Corp |
250,000 |
1.000% |
3/10/2031 |
192,387 |
UVA
Unconstrained Medium-Term Fixed Income ETF | ||||||||||
Schedule of Investments (unaudited)
(continued) | ||||||||||
As of December 31,
2023 | ||||||||||
|
|
|
Principal |
|
Interest
Rate |
|
Maturity
Date |
|
Value
(Note 1) |
|
Financials (continued) |
||||||||||
HSBC Holdings PLC |
$
25,000 |
4.250% |
3/14/2024 |
$
24,890 |
||||||
Huntington Bancshares Inc/OH |
250,000 |
4.450% |
1/0/1900 |
219,063 |
||||||
Janus Henderson US Holdings Inc |
100,000 |
4.875% |
8/1/2025 |
98,925 |
||||||
MetLife Inc |
250,000 |
5.875% |
1/0/1900 |
244,687 |
||||||
MetLife Inc |
405,000 |
10.750% |
8/1/2039 |
549,412 |
||||||
Morgan Stanley |
280,000 |
5.875% |
1/0/1900 |
266,350 |
||||||
Progressive Corp/The |
415,000 |
3.700% |
1/26/2045 |
335,534 |
||||||
5,261,366 |
| |||||||||
Health Care -
4.00% |
||||||||||
Amgen Inc |
300,000 |
3.150% |
2/21/2040 |
234,103 |
||||||
Amgen Inc |
300,000 |
4.400% |
5/1/2045 |
265,830 |
||||||
Amgen Inc |
100,000 |
5.375% |
5/15/2043 |
96,498 |
||||||
Bristol-Myers Squibb Co |
500,000 |
4.125% |
6/15/2039 |
450,824 |
||||||
Gilead Sciences Inc |
332,000 |
3.650% |
3/1/2026 |
324,862 |
||||||
Quest Diagnostics Inc |
250,000 |
4.200% |
6/30/2029 |
245,218 |
||||||
Stryker Corp |
211,000 |
3.500% |
3/15/2026 |
205,689 |
||||||
1,823,024 |
| |||||||||
Industrials -
4.68% |
||||||||||
Boeing Co/The |
500,000 |
3.300% |
3/1/2035 |
407,599 |
||||||
FedEx Corp |
300,000 |
3.875% |
8/1/2042 |
248,405 |
||||||
FedEx Corp |
704,000 |
4.100% |
4/15/2043 |
598,813 |
||||||
General Electric Co |
288,000 |
5.100% |
6/15/2032 |
282,106 |
||||||
Lockheed Martin Corp |
300,000 |
2.800% |
6/15/2050 |
214,070 |
||||||
RTX Corp |
400,000 |
4.875% |
10/15/2040 |
382,856 |
||||||
2,133,849 |
| |||||||||
Technology -
14.34% |
||||||||||
Apple Inc |
500,000 |
2.375% |
2/8/2041 |
367,812 |
||||||
Apple Inc |
500,000 |
2.900% |
9/12/2027 |
479,034 |
||||||
Apple Inc |
500,000 |
3.450% |
2/9/2045 |
417,441 |
||||||
Apple Inc |
350,000 |
3.750% |
9/12/2047 |
298,007 |
||||||
Apple Inc |
450,000 |
3.850% |
5/4/2043 |
400,911 |
||||||
Apple Inc |
400,000 |
4.250% |
2/9/2047 |
379,196 |
||||||
Apple Inc |
100,000 |
4.650% |
2/23/2046 |
98,904 |
||||||
Broadcom Corp / Broadcom Cayman Finance
Ltd |
200,000 |
3.500% |
1/15/2028 |
191,489 |
||||||
Broadcom Inc |
250,000 |
4.300% |
11/15/2032 |
239,802 |
||||||
Cisco Systems Inc |
500,000 |
2.500% |
9/20/2026 |
476,404 |
||||||
Electronic Arts Inc |
250,000 |
1.850% |
2/15/2031 |
208,766 |
||||||
Intel Corp |
300,000 |
2.800% |
8/12/2041 |
224,819 |
||||||
Intel Corp |
300,000 |
3.250% |
11/15/2049 |
222,723 |
||||||
International Business Machines
Corp |
800,000 |
4.150% |
5/15/2039 |
727,902 |
||||||
Microsoft Corp |
500,000 |
2.525% |
6/1/2050 |
341,440 |
||||||
Microsoft Corp |
450,000 |
3.500% |
11/15/2042 |
393,230 |
||||||
Oracle Corp |
400,000 |
3.800% |
11/15/2037 |
339,520 |
||||||
Oracle Corp |
650,000 |
4.125% |
5/15/2045 |
532,306 |
||||||
QUALCOMM Inc |
200,000 |
3.250% |
5/20/2027 |
193,399 |
||||||
6,533,105 |
| |||||||||
Utilities -
1.01% |
||||||||||
Berkshire Hathaway Energy Co |
250,000 |
3.700% |
7/15/2030 |
235,932 |
||||||
San Diego Gas & Electric Co |
250,000 |
3.000% |
3/15/2032 |
222,416 |
||||||
458,348 |
| |||||||||
Total Corporate Bonds
(Cost $29,792,316) |
25,649,479 |
|
UVA
Unconstrained Medium-Term Fixed Income ETF | ||||||||||
Schedule of Investments (unaudited)
(continued) | ||||||||||
As of December 31,
2023 | ||||||||||
|
|
|
Principal |
|
Interest
Rate |
|
Maturity
Date |
|
Value
(Note 1) |
|
Municipal Bonds -
13.07% |
||||||||||
Alaska Municipal Bond Bank
Authority |
$
350,000 |
2.602% |
12/1/2036 |
$
269,216 |
||||||
Alaska Municipal Bond Bank
Authority |
350,000 |
3.028% |
12/1/2041 |
260,442 |
||||||
Bay Area Toll Authority |
250,000 |
2.763% |
4/1/2034 |
210,810 |
||||||
Bay Area Toll Authority |
350,000 |
2.913% |
4/1/2036 |
287,822 |
||||||
Bristol Township School District |
255,000 |
3.650% |
6/1/2043 |
200,116 |
||||||
California State University |
300,000 |
2.670% |
11/1/2038 |
226,380 |
||||||
City of Martinez CA |
330,000 |
2.700% |
8/1/2040 |
238,870 |
||||||
City of New York NY |
170,000 |
3.450% |
3/1/2026 |
165,323 |
||||||
City of San Francisco CA Public Utilities
Commission Water Revenue |
250,000 |
2.900% |
11/1/2025 |
241,670 |
||||||
Commonwealth of Pennsylvania |
300,000 |
5.450% |
2/15/2030 |
311,469 |
||||||
County of Miami-Dade Seaport
Department |
250,000 |
2.762% |
10/1/2038 |
186,503 |
||||||
Golden State Tobacco Securitization
Corp |
250,000 |
3.115% |
6/1/2038 |
195,940 |
||||||
Manatee County Port Authority |
200,000 |
3.187% |
10/1/2041 |
151,656 |
||||||
New Jersey Educational Facilities
Authority |
400,000 |
3.468% |
7/1/2035 |
346,404 |
||||||
Pennsylvania Higher Educational
Facilities Authority |
250,000 |
4.300% |
6/15/2045 |
225,270 |
||||||
Pennsylvania State
University/The |
200,000 |
2.790% |
9/1/2043 |
155,278 |
||||||
Regents of the University of California
Medical Center Pooled Revenue |
70,000 |
2.459% |
5/15/2026 |
66,455 |
||||||
San Antonio Water System |
185,000 |
3.206% |
5/15/2030 |
169,610 |
||||||
San Marcos Unified School
District |
350,000 |
3.377% |
8/1/2040 |
275,989 |
||||||
Tampa-Hillsborough County Expressway
Authority |
505,000 |
2.692% |
7/1/2037 |
378,447 |
||||||
Torrance Unified School District |
400,000 |
3.344% |
8/1/2039 |
324,140 |
||||||
Tulare County Board of Education |
250,000 |
3.640% |
5/1/2043 |
186,550 |
||||||
University of Arizona/The |
350,000 |
3.900% |
6/1/2044 |
290,623 |
||||||
University of California |
25,000 |
3.039% |
5/15/2027 |
24,010 |
||||||
University of Pittsburgh-of the
Commonwealth System of Higher Education |
140,000 |
3.127% |
9/15/2026 |
135,811 |
||||||
Utah Transit Authority |
550,000 |
2.774% |
12/15/2038 |
427,081 |
||||||
Total Municipal Bonds
(Cost $7,482,055) |
5,951,885 |
| ||||||||
United States Treasury
Notes - 14.00% |
||||||||||
250,000 |
1.875% |
8/31/2024 |
244,766 |
|||||||
250,000 |
1.875% |
2/15/2032 |
215,312 |
|||||||
1,500,000 |
2.250% |
2/15/2052 |
1,044,375 |
|||||||
250,000 |
2.375% |
3/31/2029 |
232,344 |
|||||||
500,000 |
2.500% |
3/31/2027 |
478,125 |
|||||||
750,000 |
2.500% |
2/15/2045 |
569,766 |
|||||||
250,000 |
2.750% |
4/30/2027 |
240,586 |
|||||||
900,000 |
3.125% |
2/15/2043 |
771,750 |
|||||||
250,000 |
3.250% |
6/30/2027 |
244,453 |
|||||||
500,000 |
3.250% |
5/15/2042 |
440,312 |
|||||||
1,000,000 |
3.625% |
8/15/2043 |
922,344 |
|||||||
1,000,000 |
4.000% |
11/15/2042 |
975,312 |
|||||||
Total United States
Treasury Notes (Cost $6,859,648) |
6,379,445 |
| ||||||||
Federal Agency -
11.51% |
||||||||||
Fannie Mae Pool |
479,668 |
5.500% |
7/1/2053 |
481,950 |
||||||
Fannie Mae Pool |
730,299 |
5.500% |
9/1/2053 |
733,772 |
||||||
Fannie Mae Pool |
1,373,597 |
5.500% |
10/1/2053 |
1,380,132 |
||||||
Freddie Mac Pool |
1,920,743 |
5.000% |
4/1/2053 |
1,904,533 |
||||||
Freddie Mac Pool |
732,312 |
6.000% |
10/1/2053 |
743,942 |
||||||
Total Federal Agency
(Cost $5,075,676) |
5,244,329 |
|
UVA
Unconstrained Medium-Term Fixed Income ETF | ||||||||||
Schedule of Investments (unaudited)
(continued) | ||||||||||
As of December 31,
2023 | ||||||||||
|
|
|
|
Shares |
|
Value
(Note 1) |
| |||
Exchange-Traded Funds
- 0.16% |
||||||||||
Invesco Financial Preferred ETF (Cost
$93,300) |
5,000 |
$
72,900 |
||||||||
Closed-End Funds -
2.35% |
||||||||||
BlackRock Taxable Municipal Bond
Trust |
26,978 |
438,662 |
||||||||
Eaton Vance Ltd Duration Income
Fund |
25,000 |
239,500 |
||||||||
Guggenheim Taxable Municipal Bond &
Investment Grade Debt Trust |
24,328 |
393,871 |
||||||||
Total Closed-End Funds
(Cost $1,504,648) |
1,072,033 |
| ||||||||
Short-Term Investment
- 1.70% |
||||||||||
MSILF Treasury Portfolio, 5.21%(a) (Cost
$773,861) |
773,861 |
773,861 |
||||||||
Investments, at Value
(Cost $51,581,505) - 99.10% |
$45,143,932 |
|||||||||
Other Assets Less
Liabilities - 0.90% |
408,520 |
| ||||||||
Net Assets -
100.00% |
$45,552,452 |
| ||||||||
(a) |
Represents 7-day effective SEC yield as
of June 30, 2023. |
Summary of
Investments by Sector |
%
of Net Assets |
|
Value |
Corporate Bonds |
| ||
Communications |
3.68% |
$1,674,596 | |
Consumer
Discretionary |
13.06% |
5,950,632 | |
Consumer
Staples |
3.27% |
1,487,484 | |
Energy |
0.72% |
327,075 | |
Financials |
11.55% |
5,261,366 | |
Health
Care |
4.00% |
1,823,024 | |
Industrials |
4.68% |
2,133,849 | |
Technology |
14.34% |
6,533,105 | |
Utilities |
1.01% |
458,348 | |
Municipal Bonds |
13.07% |
5,951,885 | |
United States Treasury Notes |
14.00% |
6,379,445 | |
Federal Agency |
11.51% |
5,244,329 | |
Exchange-Traded Funds |
0.16% |
72,900 | |
Closed-End Funds |
2.35% |
1,072,033 | |
Short-Term Investment |
1.70% |
773,861 | |
Other Assets Less Liabilities |
0.90% |
408,520 | |
Total Net Assets |
100.00% |
|
$45,552,452 |
Statement of Assets and Liabilities
(unaudited) | ||||
As of December 31,
2023 |
426 |
| ||
Assets: |
| |||
Investments, at value |
$
45,143,932 |
|||
Interest receivable |
434,717 |
|||
Due from Sub-Advisor |
4,734 |
|||
Prepaid insurance |
731 |
|||
|
Total assets |
45,584,114 |
| |
Liabilities: |
||||
Accrued expenses: |
||||
Professional fees |
8,874 |
|||
Administration fees |
391 |
|||
Trustee fees and meeting
expenses |
1,025 |
|||
Compliance fees |
799 |
|||
Fund accounting fees |
231 |
|||
Operational expenses |
19,724 |
|||
Other expenses |
618 |
|||
|
Total liabilities |
31,662 |
| |
Total Net Assets |
$
45,552,452 |
| ||
Net Assets Consist of: |
||||
Paid in capital |
$
56,281,355 |
|||
Accumulated deficit |
(10,728,903 |
) | ||
Total Net Assets |
$
45,552,452 |
| ||
Investments, at cost |
$
51,581,505 |
|||
Capital Shares
Outstanding, no par value |
||||
(unlimited authorized shares) |
2,050,000 |
|||
Net Asset Value, Per Share |
$22.22 |
|
Statement of Operations
(unaudited) | |||
For the six months
ended December 31, 2023 |
426 | ||
Investment Income: |
| ||
Dividends |
$
48,704 |
||
Interest |
1,093,607 |
||
|
Total Investment Income |
1,142,311 |
|
Expenses: |
|||
Advisory fees (note 2) |
66,249 |
||
Registration and filing expenses |
920 |
||
Professional fees |
19,688 |
||
Administration fees (note 2) |
29,416 |
||
Fund accounting fees (note 2) |
17,613 |
||
Transfer agent fees (note 2) |
8,277 |
||
Shareholder fulfillment fees |
13,626 |
||
Custody fees |
6,667 |
||
Trustee fees and meeting expenses (note 3) |
4,116 |
||
Security pricing fees |
11,774 |
||
Compliance fees (note 2) |
14,789 |
||
Insurance fees |
2,024 |
||
Other expenses |
2,394 |
||
|
Total Expenses |
184,321 |
|
Fees waived by Advisor (note 2) |
(65,009 |
) | |
|
Net Expenses |
132,544 |
|
Net Investment Income |
1,009,767 |
| |
Realized and Unrealized Gain (Loss) on
Investments: |
|||
Net realized loss from investment
transactions |
(1,298,638 |
) | |
Net change in unrealized appreciation on
investments |
1,927,708 |
||
Net Realized and Unrealized Gain (Loss)
on Investments |
629,070 |
| |
Net Increase in Net Assets Resulting from
Operations |
$
1,638,837 |
|
Statements
of Changes in Net Assets |
|||||||
For the period or
fiscal year ended |
426 |
|
|
|
| ||
Six
months ended December 31, 2023 (a) |
Year
ended June 30, 2023 | ||||||
Operations: |
|||||||
Net investment income |
$
1,009,767 |
$
2,314,631 |
|||||
Net realized loss from investment
transactions |
(1,298,638) |
|
(2,949,767) |
||||
Net change in unrealized appreciation on
investments |
1,927,708 |
1,282,040 |
|||||
Net Increase in Net Assets Resulting from
Operations |
1,638,837 |
|
646,904 |
| |||
Distributions to Shareholders From
Distributable Earnings |
(1,017,500) |
|
(2,312,463) |
||||
Capital Share Transactions: |
|||||||
Shares sold |
- |
2,200,221 |
|||||
Shares repurchased |
(16,957,198) |
|
(7,627,709) |
||||
Net Decrease in Net Assets Resulting from
Capital Share Transactions |
(16,957,198) |
|
|
(5,427,488) |
|||
Net Increase (Decrease) in Net
Assets |
(16,335,861) |
|
|
(7,093,047) |
|||
Net Assets: |
|||||||
Beginning of Year |
61,888,313 |
68,981,360 |
|||||
|
End of Year |
$
45,552,452 |
|
|
$
61,888,313 |
| |
Share Information: |
|||||||
Shares sold |
- |
50,000 |
|||||
Shares repurchased |
(800,000 |
) |
- |
||||
Net Increase (Decrease) in Capital
Shares |
(800,000 |
) |
|
50,000 |
| ||
(a) |
Unaudited |
Financial
Highlights | |||||||||||||
Six months ended
December 31, |
Year ended June
30, | ||||||||||||
For a share outstanding during
the |
2023 (e) |
|
2023 |
|
2022 |
|
2021 |
|
2020 |
|
2019 |
| |
Net Asset Value, Beginning of
Year |
$
22.25 |
|
$
22.25 |
|
$
26.53 |
|
$
26.14 |
|
$
25.28 |
|
$
24.30 |
| |
Income (Loss) from Investment
Operations: |
|||||||||||||
Net investment income (a) |
0.41 |
0.75 |
0.64 |
0.64 |
0.71 |
0.70 |
|||||||
Net
realized and unrealized gain (loss) on investments |
- |
(0.52) |
(4.08) |
0.47 |
0.86 |
0.98 |
|||||||
Total from Investment Operations |
0.41 |
|
0.23 |
|
(3.44) |
|
1.11 |
|
1.57 |
|
1.68 |
| |
Less Distributions From: |
|||||||||||||
Net investment income |
(0.44) |
(0.76) |
(0.64) |
(0.64) |
(0.71) |
(0.70) |
|||||||
Net realized gains |
- |
- |
(0.20) |
(0.08) |
- |
- |
|||||||
Total Distributions |
(0.44) |
|
(0.76) |
|
(0.84) |
|
(0.72) |
|
(0.71) |
|
(0.70) |
| |
Net Asset Value, End of Year |
$
22.22 |
|
$
21.72 |
|
$
22.25 |
|
$
26.53 |
|
$
26.14 |
|
$25.28 |
| |
Total Return (b) |
1.06% |
|
1.06% |
|
(13.29)% |
|
4.30% |
|
6.29% |
|
7.05% |
| |
Net Assets, End of Year (in
thousands) |
$
45,552 |
$
61,888 |
$
68,981 |
$
80,914 |
$
61,426 |
$
45,502 |
|||||||
Ratios of: |
|||||||||||||
Gross Expenses to Average Net Assets
(c) |
0.70% |
(f) |
0.63% |
0.62% |
0.65% |
0.73% |
0.76% |
||||||
Net Expenses to Average Net Assets
(c) |
0.50% |
(f) |
0.50% |
0.50% |
0.50% |
0.50% |
0.45% |
||||||
Net
Investment Income to Average Net Assets (c)(d) |
3.82% |
(f) |
3.45% |
2.58% |
2.47% |
2.75% |
2.88% |
||||||
Portfolio turnover rate |
1.50% |
(g) |
8.92% |
|
20.17% |
|
30.49% |
|
21.28% |
|
49.44% |
| |
(a) |
Calculated using the
average shares method. | ||||||||||||
(b) |
Includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and, consequently, the net asset values for financial
reporting purposes and the returns based upon those net asset values may
differ from the net asset values and returns for shareholder
transactions. | ||||||||||||
(c) |
Does not include expenses
of the investment companies in which the Fund invests. | ||||||||||||
(d) |
Recognition of net
investment income (loss) by the Fund is affected by the timing of the
declaration of dividends by the underlying investment companies in which
the Fund invests. | ||||||||||||
(e) |
Unaudited | ||||||||||||
(f) |
Annualized | ||||||||||||
(g) |
Not annualized |
1. |
Organization
and Significant Accounting Policies |
Level 1: |
Unadjusted quoted prices in active markets for identical
securities assets or liabilities that the funds have the ability to
access. |
Level 2: |
Observable inputs other than quoted prices included in Level 1 that
are observable for the asset or liability, either directly or indirectly.
These inputs may include quoted prices for the identical instrument on an
inactive market, prices for similar instruments, interest rates, credit
spreads, yield curves, and market-collaborated
input. |
Level 3: |
Unobservable inputs for the asset or liability
to the extent that observable inputs are not available, representing the
assumptions that a market participant would use in valuing the asset or
liability at the measurement date; they would be based on the best
information available, which may include the funds’ own
data. |
|
Total |
|
Level
1 |
|
Level
2 |
|
Level
3(a) |
Assets |
|||||||
Corporate Bonds |
$
25,649,479 |
$
- |
$
25,649,479 |
$
- | |||
Municipal Bonds |
5,951,885 |
- |
5,951,885 |
- | |||
United States Treasury
Notes |
6,379,445 |
- |
6,379,445 |
- | |||
Federal Agency |
5,244,329 |
- |
5,244,329 |
- | |||
Exchange-Traded
Funds |
72,900 |
72,900 |
- |
- | |||
Closed-End Funds |
1,072,033 |
1,072,033 |
- |
- | |||
Short-Term
Investment |
773,861 |
773,861 |
- |
- | |||
Total
Assets |
$
45,143,932 |
$
1,918,794 |
$
43,225,138 |
$
- | |||
|
|
|
|
|
|
|
|
(a) |
The
ETF did not hold any Level 3 securities during the
year. |
2. |
Transactions
with Related Parties and Service Providers |
3. |
Trustees
and Officers |
4. |
Purchases
and Sales of Investment Securities |
Purchases
of Non-U.S. Government Securities |
Proceeds
from Sales of Non-U.S. Government Securities |
Purchases
of U.S. Government Securities |
Proceeds
from Sales of U.S. Government Securities |
In-Kind
Purchases |
In-Kind
Sales | |||||
$20,976,262 |
$37,961,645 |
$5,342,939 |
$5,159,339 |
$- |
$- |
5. |
Federal
Income Tax |
Cost of
Investments |
$51,581,505 | |
Gross Unrealized
Appreciation |
232,979 | |
Gross Unrealized
Depreciation |
(6,670,552) | |
Net Unrealized
Appreciation (Depreciation) |
(6,437,573) | |
Short Term Capital Loss
Carryforward |
(258,313) | |
Long Term Capital Loss
Carryforward |
(2,743,284) | |
Distributable Earnings
(Accumulated Deficit) |
$
(9,439,170) | |
|
|
6. |
Concentration
of Risk |
7. |
Risks
Considerations |
o |
Not Individually Redeemable.
Shares are not individually redeemable and may be redeemed by the ETF at
NAV only in large blocks known as “Creation Units.” You may incur
brokerage costs purchasing enough Shares to constitute a Creation
Unit. |
o |
Trading Issues. An active trading
market for the ETF’s shares may not be developed or maintained. Trading in
Shares on the Exchange may be halted due to market conditions or for
reasons that, in the view of the Exchange, make trading in Shares
inadvisable, such as extraordinary market volatility. There can be
no assurance that Shares will continue to meet the listing requirements of
the Exchange. If the ETF’s shares are traded outside a
collateralized settlement system, the number of financial institutions
that can act as authorized participants that can post collateral on an
agency basis is limited, which may limit the market for the ETF’s
shares. |
o |
Cash Purchases and Redemptions. To the
extent Creation Units are purchased or redeemed by Authorized Participants
in cash instead of in-kind, the ETF will incur certain costs such as
brokerage expenses and taxable gains and losses. These costs could be
imposed on the ETF and impact the ETF’s NAV if not fully offset by
transaction fees paid by the Authorized
Participants. |
o |
Market Price Variance Risk. The
market prices of Shares will fluctuate in response to changes in NAV and
supply and demand for Shares and will include a “bid-ask spread” charged
by the exchange specialists, market makers or other participants that
trade the particular security. There may be times when the market
price and the NAV vary significantly. This means that Shares may
trade at a discount to NAV. |
● |
In
times of market stress, market makers may step away from their role market
making in shares of ETFs and in executing trades, which can lead to
differences between the market value of ETF shares and the ETF’s net asset
value. |
● |
To
the extent Authorized Participants exit the business or are unable to
process creations or redemptions and no other Authorized Participant can
step in to do so, there may be a significantly reduced trading market in
the ETF’s shares, which can lead to differences between the market value
of ETF shares and the ETF’s net asset
value. |
● |
The
market price for the ETF’s shares may deviate from the ETF’s net asset
value, particularly during times of market stress, with the result that
investors may pay significantly more or receive significantly less for ETF
shares than the ETF’s net asset value, which is reflected in the bid and
ask price for ETF shares or in the closing
price. |
● |
When
all or a portion of an ETF’s underlying securities trade in a market that
is closed when the market for the ETF’s shares is open, there may be
changes from the last quote of the closed market and the quote from the
ETF’s domestic trading day, which could lead to differences between the
market value of the ETF’s shares and the ETF’s net asset
value. |
● |
In
stressed market conditions, the market for the ETF’s shares may become
less liquid in response to the deteriorating liquidity of the ETF’s
portfolio. This adverse effect on the liquidity of the ETF’s shares
may, in turn, lead to differences between the market value of the ETF’s
shares and the ETF’s net asset value. |
8. |
Commitments
and Contingencies |
10. |
Subsequent
Events |
1. |
Proxy
Voting Policies and Voting Record |
2. |
Quarterly
Portfolio Holdings |
3. |
Schedule
of Shareholder Expenses |
|
Beginning
Value 7/1/2023 |
Ending
Value 12/31/2023 |
Expense
Paid During Period* |
Annualized
Expense Ratio* |
Actual |
$1,000.00 |
$1,010.60 |
$2.51 |
0.50% |
Hypothetical |
1,000.00 |
1,044.99 |
2.55 |
0.50% |
4. |
Approval
of Investment Advisory Agreement |
(ii) |
Performance.
The Trustees compared the performance of the ETF with the performance of
its comparable funds with similar strategies managed by other investment
advisers, and applicable peer group data (e.g., Morningstar/Lipper peer
group average). The Trustees noted that the ETF had outperformed the peer
group average for the 3-year period, but slightly underperformed the peer
group average for the 1-year and since inception periods. The Trustees
also noted that the ETF had outperformed the Lipper category average for
the 1-year and since inception periods, but slightly underperformed the
Lipper category average for the 3-year period. The Trustees also discussed
the performance of the ETF compared to its benchmark indices and noted
that the ETF had outperformed the Bloomberg US Aggregate Bond Total Return
Index for the 3-year and since inception periods. It was noted that the
underperformance in the recent 1-year period was primarily due to the
ETF’s duration. The Trustees also considered the Advisor’s role in
supervising the investment activity of the ETF. After reviewing the
investment performance of the ETF and other factors, the Board concluded
that the investment performance of the ETF and Advisor were
satisfactory. |
(iv) |
Profitability.
The Board reviewed the Advisor’s profitability analysis in connection with
its management of the ETF over the past twelve months. The Board
noted that the Advisor realized a profit for the prior twelve months of
operation. The Board considered the profit realized and concluded that the
Advisor’s level of profitability was not
excessive. |
(v) |
Economies
of Scale. In this regard, the Trustees reviewed the ETF’s
operational history and noted that the size of the ETF had not provided an
opportunity to realize economies of scale. The Trustees then reviewed the
fee arrangements for breakpoints or other provisions that would allow
shareholders to benefit from economies of scale in the future as the ETF
grows. The Trustees determined that the maximum management fee would stay
the same regardless of the asset levels. It was pointed out that
breakpoints in the advisory fee could be reconsidered in the future as the
ETF grows. |
5. |
Approval
of Investment Sub-Advisory Agreement |
(i) |
Nature,
Extent, and Quality of Services. The Trustees considered the
responsibilities of the Sub-Advisor under the Investment Sub-Advisory
Agreement. The Trustees reviewed the services being provided by the
Sub-Advisor to the ETF including, without limitation, the quality of its
investment sub-advisory services since the ETF’s inception (including
research and recommendations with respect to portfolio securities); the
Sub-Advisor’s procedures for formulating investment recommendations and
assuring compliance with the ETF’s investment objectives, policies, and
limitations. The Trustees evaluated the Sub-Advisor’s staffing, personnel,
and methods of operating; the education and experience of the
Sub-Advisor’s personnel; compliance program; and financial condition. It
was noted that the Sub-Advisor did not have any changes to their personnel
since the last review. |
(ii) |
Performance.
The Trustees compared the performance of the ETF with the performance of
comparable funds with similar strategies managed by other investment
advisers, and applicable peer group data (e.g., Morningstar/Lipper peer
group average). The Trustees noted that the ETF had outperformed the peer
group for the 3-year period, but slightly underperformed the peer group
average for the 1-year and since inception periods. The Trustees also
noted that the ETF had outperformed the Lipper category average for the
1-year and since inception periods, but slightly underperformed the Lipper
category average for the 3-year period. The Trustees also discussed the
performance of the Fund compared to its benchmark indices and noted that
the ETF had outperformed the Bloomberg US Aggregate Bond Total Return
Index for the 3-year and since inception periods. It was noted that the
underperformance in the recent 1-year period was primarily due to the
ETF’s duration. |
(iii) |
Fees
and Expenses. The Trustees first noted the management fee for
the ETF under the Investment Sub-Advisory Agreement. The Trustees compared
the management fee of the ETF to other comparable accounts managed by the
Sub-Advisor and noted that the Sub-Advisor did not manage any other
accounts. The Board considered the overall management fee noting that it
remained above the peer group average, but below the Lipper category
average. Following this comparison and upon further consideration and
discussion of the foregoing, the Board concluded that the fees to be paid
to Sub-Advisor were not unreasonable in relation to the nature and quality
of the services provided the Sub-Advisor and that they reflected charges
that were within a range of what could have been negotiated at arm’s
length. |
(iv) |
Profitability.
The Board reviewed the Sub-Advisor’s profitability analysis in connection
with its management of the ETF over the past twelve months. The Board
noted that the Sub-Advisor realized a small profit for the prior twelve
months of operations. The Trustees discussed the profitability level of
the Sub-Advisor, noting, among other factors and circumstances, that the
level of profitability was not excessive. |
(v) |
Economies
of Scale. In this regard, the Trustees reviewed the ETF’s
operational history and noted that the size of the ETF had not provided an
opportunity to realize economies of scale. The Trustees then reviewed the
ETF’s fee arrangements for breakpoints or other provisions that would
allow the shareholders to benefit from economies of scale in the future as
the ETF grows. The Trustees determined that the maximum management fee
would stay the same regardless of the asset levels. It was pointed out
that breakpoints in the advisory fee could be reconsidered in the
future. |
For
Shareholder Service Inquiries: |
For
Investment Advisor Inquiries: |
|
Nottingham
Shareholder Services
116
South Franklin Street
Post
Office Box 69
Rocky
Mount, North Carolina 27802-0069 |
Universal Value Advisors
1
E. Liberty Street #406
Reno,
Nevada 89501 |
|
|
| |
Telephone: |
Telephone: |
|
800-773-3863 |
775-284-7778 | |
World Wide Web
@: |
World Wide
Web@ |
|
ncfunds.com |
www.etfpages.com/FFIU |