(IMAGE)
 
 
Anfield Universal Fixed Income ETF
 
AFIF
 
 
 
 
 
 
 
 
 
 
 
July 31, 2022
 
Annual Report
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advised by:
Regents Park Funds, LLC
4041 MacArthur Blvd., Suite 155
Newport Beach, CA 92660
RegentsParkFunds.com
1-866-866-4848
 
Distributed by Northern Lights Distributors, LLC
Member FINRA

(REGENTS PARK LOGO) (ANFIELD CAPITAL LOGO)

 

August 2022

 

Annual Letter to Shareholders of the Anfield Universal Fixed Income ETF (AFIF)

 

General Fund Update

 

During its annual fiscal year ended July 31st, 2022, the Fund navigated a fixed income environment that saw heightened interest rate volatility due primarily to the Federal Reserve’s bid to tame historically high levels of inflation.

 

Update on Performance

 

For the fiscal year ended July 31st, 2022, the Fund returned -5.73% net of all fees and expenses. Though the Fund is not managed to any benchmark, the Bloomberg U.S. Aggregate Bond Index returned -8.98%, the Bloomberg Intermediate U.S. Aggregate Bond Index returned -6.48%, and the ICE BofAML US Dollar Libor 3 Month Constant Maturity Indexed returned 0.13%. The main driver of the Fund’s outperformance vs. the two aggregate bond indices listed above was the Fund’s more defense interest rate posture, with a duration positioning of 2-3 years, vs. the indices’ durations of 4.5-6.5 years, though past performance does not guarantee future results. This period saw a dramatic rise in interest rates, as the yield on the US 10-Year Note ended the previous fiscal year on July 31, 2021 at 1.22%, peaked at 3.48% in mid-June 2022, and ended the fiscal year ended July 31, 2022 at 2.65%.

 

For the period August 2021 through December 2021, the Fund experienced relatively flat performance, generally aligning with the other funds in its peer group. This period was followed by a decline in fixed income markets from January to mid-June 2022, primarily driven by rising interest rates and a sell-off in more risky fixed income segments such as investment grade and high yield corporate debt. The Fund was not immune from these market pressures, though for this period the Fund outperformed the Bloomberg U.S. Aggregate Bond Index. Both equity and fixed income markets pivoted in mid-June, as both safer-haven bonds such as US Treasuries and riskier bonds such as corporate credit rallied, and the Fund participated in this rally.

 

Current Positioning

 

Looking forward, we continue to emphasize high quality, yield-enhancing corporate credit, mortgage-backed, and asset-backed security allocations while favoring the front-end of the yield curve as we do not believe the Fund will be compensated appropriately to extend further out and take on additional risk. Given the very flat yield curve, we believe adding bonds with maturities beyond 2-3 years requires onboarding more risk than we feel prudent unless it is a special circumstance. Our team continues to believe in the potential for more spread volatility resulting from the political and legislative headlines leading in to the 2022 midterm elections.

 

On behalf of the entire staff at Anfield Capital Management, we thank you for your continued support.

(-s-David Young)

 

David Young, CFA
CEO & Founder

1

The views in this report are those of the Fund’s management. This report contains certain forward-looking statements about factors that may affect the performance of the Fund in the future. These statements are based on the Fund’s management’s predictions and expectations concerning certain future events such as the performance of the economy as a whole and of specific industry sectors. Management believes these forward-looking statements are reasonable, although they are inherently uncertain and difficult to predict.

 

6832-NLD-08152022

2

Anfield Universal Fixed Income ETF
PORTFOLIO REVIEW (Unaudited)
July 31, 2022

 

The Fund’s performance figures* for the periods ended July 31, 2022, as compared to its benchmark:

 

    Inception ***
  One Year through July 31, 2022
Anfield Universal Fixed Income ETF - NAV -5.73% -0.98%
Anfield Universal Fixed Income ETF - Market Price -6.03% -1.04%
ICE BofA Merrill Lynch US Dollar LIBOR 3-Month Constant Maturity Index ** 0.13% 1.18%

 

* The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemptions of Fund shares. Past performance is no guarantee of future results. Performance figures for periods less than 1 year are not annualized. The Fund’s adviser has contractually agreed to reduce the Fund’s fees and/or absorb expenses of the Fund until at least November 30, 2022 to ensure that total annual Fund operating expenses after fee waiver and reimbursement (exclusive of any taxes, interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, indirect expenses, expenses of other investment companies in which the Fund may invest, or extraordinary expenses such as litigation) will not exceed 1.50% of average daily net assets. This agreement may be terminated by the Fund’s Board of Trustees on 60 days’ written notice to the adviser. These fee waivers and expense reimbursements are subject to possible recoupment from the Fund in future years on a rolling three year basis (within the three years after the fees have been waived or reimbursed) if such recoupment can be achieved without exceeding the foregoing expense limits as well as any expense limitation that was in effect at the time the waiver or reimbursement was made. The Fund’s total annual operating expenses (including underlying fund fees) after fee waiver and expense reimbursement is 1.01% and without waiver or reimbursement the gross operating expenses (including underlying fund fees) is 1.01%, per the November 30, 2021 prospectus. Please review the Fund’s most recent prospectus for more detail on the expense waiver.

 

The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing exchange traded fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the Market Price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Beginning November 2, 2020, Market Price returns are calculated using the closing price and account for distributions from the Fund. Prior to November 2, 2020, Market Price returns were calculated using the midpoint price and accounted for distributions from the Fund. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively.

 

** The ICE BofA Merrill Lynch US Dollar LIBOR 3-Month Constant Maturity Index is designed to track the performance of a synthetic asset paying LIBOR to a stated maturity. The index is based on the assumed purchase at par of a synthetic instrument having exactly its stated maturity and with a coupon equal to that day’s fixing rate. That issue is assumed to be sold the following business day (priced at a yield equal to the current day fixing rate) and rolled into a new instrument. Investors cannot invest directly in an index or benchmark. Index returns are gross of any fees, brokerage commissions or other expenses of investing.

 

*** As of the close of business on the day of commencement of trading on September 18, 2018.

 

Comparison of the Change in Value of a $10,000 Investment

(LINE GRAPH)

3

Anfield Universal Fixed Income ETF
PORTFOLIO REVIEW (Unaudited) (Continued)
July 31, 2022

 

Portfolio Composition as of July 31, 2022:

 

Top 10 Industry/Asset Class Allocations   % of Net Assets  
Asset Backed Securities - Collateralized Loan Obligations     23.6 %
Collateralized Mortgage Obligations     12.6 %
Exchange-Traded Funds - Fixed Income     8.0 %
Corporate Bonds - Banking     7.0 %
Corporate Bonds - Automotive     4.8 %
Corporate Bonds - Real Estate Investment Trusts     3.6 %
Corporate Bonds - Transportation & Logistics     3.5 %
Corporate Bonds - Specialty Finance     3.4 %
Term Loans - Transportation & Logistics     3.2 %
Corporate Bonds - Biotech & Pharma     3.0 %
Other Assets Less Liabilities     27.3 %
      100.0 %

 

Please refer to the Schedule of Investments in this Annual Report for a detailed analysis of the Fund’s holdings.

4

Anfield Universal Fixed Income ETF
SCHEDULE OF INVESTMENTS
July 31, 2022

 

Shares         Fair Value  
        EXCHANGE-TRADED FUNDS — 8.0%        
        FIXED INCOME - 8.0%        
  178,700     Invesco Fundamental High Yield Corporate Bond ETF   $ 3,179,073  
  51,400     iShares Trust iShares 1-5 Year Investment Grade     2,635,278  
  28,900     SPDR Blackstone Senior Loan ETF     1,228,828  
  27,900     SPDR Bloomberg High Yield Bond ETF     2,689,002  
              9,732,181  
                 
        TOTAL EXCHANGE-TRADED FUNDS (Cost $10,415,533)     9,732,181  

 

Principal             Coupon Rate          
Amount ($)         Spread   (%)   Maturity   Fair Value  
        ASSET BACKED SECURITIES — 23.7%                    
        CLO — 23.6%                    
  2,000,000     Apidos CLO XV (a),(b)   US0003M + 2.700%   5.4100   04/20/31     1,811,448  
  500,000     Ares XXXIIR CLO Ltd. (a),(b)   US0003M + 2.900%   4.3110   05/15/30     453,154  
  2,000,000     Benefit Street Partners Clo XII Ltd. (a),(b)   US0003M + 3.050%   5.5620   10/15/30     1,813,784  
  2,000,000     BlueMountain Fuji US CLO II Ltd. (a),(b)   US0003M + 3.000%   5.7100   10/20/30     1,807,624  
  250,000     Carlyle Global Market Strategies CLO 2013-4 Ltd. (a),(b)   US0003M + 1.750%   4.2620   01/15/31     235,350  
  2,000,000     Carlyle US CLO 2018-2 Ltd. (a),(b)   US0003M + 2.900%   5.4120   10/15/31     1,843,136  
  1,400,000     Cedar Funding IX CLO Ltd. (a),(b)   US0003M + 2.600%   5.3100   04/20/31     1,305,366  
  1,000,000     Columbia Cent CLO 28 Ltd. (a),(b)   US0003M + 3.420%   4.7910   11/07/30     895,964  
  1,500,000     Dryden 37 Senior Loan Fund (a),(b)   US0003M + 5.150%   7.6620   01/15/31     1,283,175  
  1,600,000     Dryden 55 CLO Ltd. (a),(b)   US0003M + 2.850%   5.3620   04/15/31     1,382,845  
  1,500,000     Greenwood Park CLO Ltd. (a),(b)   US0003M + 2.500%   5.0120   04/15/31     1,321,671  
  2,000,000     Mountain View CLO IX Ltd. (a),(b)   US0003M + 3.120%   5.6320   07/15/31     1,684,122  
  1,000,000     Oaktree CLO 2019-1 Ltd. (a),(b)   US0003M + 3.800%   6.5590   04/22/30     887,934  
  2,000,000     Octagon Investment Partners 18-R Ltd. (a),(b)   US0003M + 5.510%   8.2500   04/16/31     1,772,796  
  2,150,000     OZLM XXIV Ltd. (a),(b)   US0003M + 4.260%   6.9700   07/20/32     1,911,138  
  1,500,000     Rockford Tower CLO 2017-1 Ltd. (a),(b)   US0003M + 4.980%   7.6900   04/20/34     1,406,627  
  1,750,000     Shackleton 2014-V-R CLO Ltd. (a),(b)   US0003M + 3.150%   4.5210   05/07/31     1,568,000  
  1,000,000     Sound Point CLO VIII-R, Ltd. (a),(b)   US0003M + 6.600%   9.1120   04/15/30     660,761  
  2,025,000     Steele Creek CLO 2014-1 Ltd. (a),(b)   US0003M + 2.800%   5.5320   04/21/31     1,817,678  
  2,000,000     Venture XV CLO Ltd. (a),(b)   US0003M + 3.920%   6.4320   07/15/32     1,757,928  
  1,000,000     Zais Matrix CDO I (a),(b)   TSFR3M + 4.670%   7.2110   01/25/35     923,501  
                          28,544,002  

See accompanying notes to financial statements.

5

Anfield Universal Fixed Income ETF
SCHEDULE OF INVESTMENTS (Continued)
July 31, 2022

 

Principal             Coupon Rate          
Amount ($)         Spread   (%)   Maturity   Fair Value  
        ASSET BACKED SECURITIES — 23.7% (Continued)                    
        COLLATERALIZED MORTGAGE OBLIGATIONS — 0.1%                    
  56,732     Alternative Loan Trust 2007-J1 (c)       3.9860   11/25/36   $ 54,341  
  2,636,955     BCAP, LLC Trust 2007-AA2 (b),(d)       0.4210   04/25/37     30,559  
  6,331,214     Vendee Mortgage Trust 2011-2 (b),(d)       0.3600   10/15/41     75,658  
                          160,558  
        TOTAL ASSET BACKED SECURITIES (Cost $32,010,267)     28,704,560  
                             
Principal             Coupon Rate          
Amount ($)         Spread   (%)   Maturity   Fair Value  
        COLLATERALIZED MORTGAGE OBLIGATIONS — 12.5%        
  296,258     Fannie Mae Interest Strip (d)       8.0000   11/25/27     34,966  
  171,109     Fannie Mae Interest Strip (d)       6.5000   04/25/32     27,711  
  103,887     Fannie Mae Interest Strip (d)       5.0000   10/25/33     12,853  
  122,238     Fannie Mae Interest Strip (d)       5.5000   12/25/33     24,060  
  75,660     Fannie Mae Interest Strip (b),(d)       6.0000   07/25/34     11,943  
  427,986     Fannie Mae Interest Strip (d)       4.5000   09/25/35     71,043  
  188,834     Fannie Mae Interest Strip (b),(d)       6.5000   09/25/35     33,682  
  149,300     Fannie Mae Interest Strip (b),(d)       6.5000   11/25/35     23,515  
  647,966     Fannie Mae Interest Strip (d)       5.0000   04/25/36     107,732  
  187,400     Fannie Mae Interest Strip (b),(d)       6.0000   05/25/36     37,529  
  99,147     Fannie Mae Interest Strip (d)       6.0000   06/25/36     22,119  
  932,040     Fannie Mae Interest Strip (d)       5.0000   07/25/36     180,322  
  674,000     Fannie Mae Interest Strip (d)       6.5000   07/25/36     145,609  
  167,105     Fannie Mae Interest Strip (d)       5.0000   10/25/36     33,197  
  1,931,853     Fannie Mae Interest Strip (d)       5.5000   11/25/36     385,737  
  100,608     Fannie Mae Interest Strip (d)       5.5000   07/25/37     17,027  
  159,337     Fannie Mae Interest Strip (d)       6.0000   01/25/38     31,429  
  594,623     Fannie Mae Interest Strip (d)       6.0000   01/25/38     123,527  
  131,304     Fannie Mae Interest Strip (d)       6.0000   02/25/38     26,749  
  975,136     Fannie Mae Interest Strip (d)       6.0000   05/25/39     312,245  
  291,017     Fannie Mae Interest Strip (d)       4.5000   06/25/39     42,561  
  423,895     Fannie Mae Interest Strip (d)       5.5000   11/25/39     92,398  
  1,231,456     Fannie Mae Interest Strip (d)       5.5000   11/25/40     241,298  
  428,993     Fannie Mae Interest Strip (d)       4.0000   04/25/42     77,691  

See accompanying notes to financial statements.

6

Anfield Universal Fixed Income ETF
SCHEDULE OF INVESTMENTS (Continued)
July 31, 2022

 

Principal             Coupon Rate          
Amount ($)         Spread   (%)   Maturity   Fair Value  
        COLLATERALIZED MORTGAGE OBLIGATIONS — 12.5% (Continued)    
  103,261     Fannie Mae REMICS (b),(d)   US0001M + 7.950%   5.6910   07/25/31   $ 7,673  
  585,340     Fannie Mae REMICS (b),(d)   US0001M + 7.750%   5.4910   02/25/33     89,230  
  167,826     Fannie Mae REMICS (d)       6.0000   05/25/33     23,863  
  268,617     Fannie Mae REMICS (b),(d)   US0001M + 38.500%   5.5000   07/25/33     45,342  
  344,554     Fannie Mae REMICS (b),(d)       5.0000   10/25/34     58,791  
  247,866     Fannie Mae REMICS (b),(d)   US0001M + 6.650%   4.3910   12/25/34     25,256  
  86,126     Fannie Mae REMICS (b),(d)   US0001M + 6.050%   3.7910   10/25/35     8,799  
  151,924     Fannie Mae REMICS (b),(d)   US0001M + 6.700%   4.4410   10/25/35     18,423  
  211,563     Fannie Mae REMICS (b),(d)   US0001M + 6.625%   4.3660   01/25/36     26,374  
  63,376     Fannie Mae REMICS (b),(d)   US0001M + 6.700%   4.4410   03/25/36     7,917  
  26,347     Fannie Mae REMICS (b),(d)   US0001M + 6.700%   4.4410   03/25/36     3,581  
  1,676,202     Fannie Mae REMICS (b),(d)   US0001M + 0.380%   2.6390   04/25/36     204,523  
  1,765,694     Fannie Mae REMICS (b),(d)   US0001M + 0.390%   2.6490   07/25/36     185,577  
  158,118     Fannie Mae REMICS (b),(d)   US0001M + 6.580%   4.3210   10/25/36     21,406  
  127,468     Fannie Mae REMICS (b),(d)   US0001M + 6.600%   4.3410   12/25/36     17,229  
  60,971     Fannie Mae REMICS (b),(d)   US0001M + 7.200%   4.9410   01/25/37     8,088  
  254,913     Fannie Mae REMICS (b),(d)   US0001M + 6.770%   4.5110   04/25/37     37,010  
  956,001     Fannie Mae REMICS (b),(d)   US0001M + 6.760%   4.5010   06/25/37     127,337  
  106,032     Fannie Mae REMICS (b),(d)   US0001M + 6.400%   4.1410   07/25/37     14,611  
  133,241     Fannie Mae REMICS (b),(d)   US0001M + 6.600%   4.3410   07/25/37     14,812  
  834,611     Fannie Mae REMICS (b),(d)   US0001M + 6.520%   4.2610   09/25/37     113,819  
  124,392     Fannie Mae REMICS (b),(d)   US0001M + 6.410%   4.1510   11/25/37     16,398  
  238,268     Fannie Mae REMICS (b),(d)   US0001M + 6.400%   4.1410   12/25/37     33,957  
  322,242     Fannie Mae REMICS (b),(d)   US0001M + 6.300%   4.0410   01/25/38     40,760  
  6,199,834     Fannie Mae REMICS (b),(d)   US0001M + 6.450%   0.1500   02/25/38     25,149  
  63,751     Fannie Mae REMICS (b)   US0001M + 23.283%   15.0000   02/25/38     68,301  
  2,160,212     Fannie Mae REMICS (b),(d)   US0001M + 6.000%   3.7410   07/25/38     237,342  
  408,721     Fannie Mae REMICS (b),(d)   US0001M + 6.050%   3.7910   09/25/39     37,435  
  433,681     Fannie Mae REMICS (d)       6.0000   11/25/39     39,788  
  122,107     Fannie Mae REMICS (b),(d)   US0001M + 6.250%   3.9910   01/25/40     15,482  
  120,388     Fannie Mae REMICS (d)       5.5000   10/25/40     15,816  
  337,916     Fannie Mae REMICS (d)       6.0000   11/25/40     71,501  
  433,533     Fannie Mae REMICS (b),(d)   US0001M + 6.030%   3.7710   12/25/40     54,637  

See accompanying notes to financial statements.

7

Anfield Universal Fixed Income ETF
SCHEDULE OF INVESTMENTS (Continued)
July 31, 2022

 

Principal
Amount ($)
        Spread   Coupon Rate
(%)
  Maturity   Fair Value  
        COLLATERALIZED MORTGAGE OBLIGATIONS — 12.5% (Continued)    
  90,598     Fannie Mae REMICS (d)       4.0000   03/25/41   $ 12,064  
  318,076     Fannie Mae REMICS (d)       5.0000   06/25/41     48,758  
  520,486     Fannie Mae REMICS (b),(d)   US0001M + 6.550%   4.2910   10/25/41     55,521  
  3,008,677     Fannie Mae REMICS (d)       5.0000   10/25/41     378,087  
  1,842,690     Fannie Mae REMICS (b),(d)   US0001M + 6.520%   4.2610   12/25/41     291,098  
  1,196,872     Fannie Mae REMICS (b),(d)   US0001M + 6.700%   4.4410   03/25/42     95,913  
  1,080,666     Fannie Mae REMICS (b),(d)   US0001M + 5.550%   3.2910   08/25/42     96,543  
  1,637,630     Fannie Mae REMICS (d)       5.0000   09/25/42     306,673  
  1,789,571     Fannie Mae REMICS (d)       4.5000   02/25/43     316,037  
  115,923     Fannie Mae REMICS (d)       4.5000   02/25/43     12,935  
  324,068     Fannie Mae REMICS (b),(d)   US0001M + 6.000%   3.7410   10/25/43     41,701  
  444,800     Fannie Mae REMICS (d)       5.5000   12/25/43     76,243  
  1,388,784     Fannie Mae REMICS (b),(d)   US0001M + 6.250%   3.9910   01/25/45     173,439  
  302,842     Fannie Mae REMICS (d)       5.0000   06/25/45     41,104  
  523,226     Fannie Mae REMICS (b),(d)   US0001M + 6.000%   3.7410   07/25/46     92,197  
  1,802,768     Fannie Mae REMICS (b),(d)   US0001M + 6.200%   3.9410   12/25/47     271,253  
  1,152,058     Fannie Mae REMICS (b),(d)   US0001M + 6.150%   3.8910   01/25/48     167,039  
  996,025     Fannie Mae REMICS (b),(d)   US0001M + 6.250%   3.9910   08/25/48     117,077  
  631,519     Fannie Mae REMICS (d)       5.5000   08/25/48     115,222  
  141,628     Fannie Mae REMICS (d)       4.5000   10/25/48     26,464  
  486,506     Fannie Mae REMICS (b),(d)   US0001M + 6.050%   3.7910   08/25/49     74,000  
  1,274,299     Fannie Mae REMICS (b),(d)   US0001M + 6.050%   3.7910   05/25/59     159,849  
  125,915     Freddie Mac REMICS (b),(d)   US0001M + 7.880%   5.8810   06/15/31     18,204  
  1,396,247     Freddie Mac REMICS (d)       6.5000   05/15/32     211,807  
  101,091     Freddie Mac REMICS (b),(d)       6.5000   05/15/32     14,836  
  290,763     Freddie Mac REMICS (b),(d)   US0001M + 8.000%   6.0010   06/15/32     32,743  
  53,788     Freddie Mac REMICS (b),(d)   US0001M + 7.900%   5.9010   11/15/32     9,290  
  59,806     Freddie Mac REMICS (b),(d)   US0001M + 8.000%   6.0010   12/15/32     6,797  
  280,321     Freddie Mac REMICS (d)       5.5000   03/15/33     43,520  
  680,386     Freddie Mac REMICS (b),(d)   US0001M + 6.000%   4.0010   05/15/34     65,250  
  311,460     Freddie Mac REMICS (b),(d)   US0001M + 6.700%   4.7010   11/15/34     43,730  
  375,489     Freddie Mac REMICS (b),(d)   US0001M + 6.050%   4.0510   03/15/35     37,376  
  990,401     Freddie Mac REMICS (b),(d)   US0001M + 6.600%   4.6010   10/15/35     136,001  
  63,426     Freddie Mac REMICS (b),(d)   US0001M + 6.700%   4.7010   02/15/36     8,894  

See accompanying notes to financial statements.

8

Anfield Universal Fixed Income ETF
SCHEDULE OF INVESTMENTS (Continued)
July 31, 2022

 

Principal             Coupon Rate          
Amount ($)         Spread   (%)   Maturity   Fair Value  
        COLLATERALIZED MORTGAGE OBLIGATIONS — 12.5% (Continued)    
  287,678     Freddie Mac REMICS (b),(d)   US0001M + 6.650%   4.6510   05/15/36   $ 31,884  
  121,825     Freddie Mac REMICS (b),(d)   US0001M + 6.650%   4.6510   11/15/36     17,352  
  253,064     Freddie Mac REMICS (b),(d)   US0001M + 6.100%   4.1010   04/15/37     35,879  
  238,563     Freddie Mac REMICS (b),(d)   US0001M + 6.050%   4.0510   08/15/37     27,111  
  247,324     Freddie Mac REMICS (b),(d)   US0001M + 6.030%   4.0310   09/15/37     29,338  
  225,776     Freddie Mac REMICS (d)       5.5000   07/15/39     20,389  
  172,153     Freddie Mac REMICS (b),(d)   US0001M + 6.730%   4.7310   09/15/39     23,325  
  303,481     Freddie Mac REMICS (d)       3.5000   10/15/39     23,152  
  2,739,222     Freddie Mac REMICS (b),(d)   US0001M + 6.550%   4.5510   03/15/40     454,306  
  191,514     Freddie Mac REMICS (b),(d)   US0001M + 6.030%   4.0310   11/15/40     23,800  
  166,821     Freddie Mac REMICS (b),(d)   US0001M + 6.550%   4.5510   08/15/42     30,536  
  472,629     Freddie Mac REMICS (d)       4.5000   09/15/43     89,743  
  1,528,224     Freddie Mac REMICS (d)       5.5000   12/25/43     287,406  
  196,564     Freddie Mac REMICS (d)       4.0000   03/15/45     32,902  
  11,149,099     Freddie Mac REMICS (b),(d)   US0001M + 6.100%   0.1000   05/15/46     39,932  
  272,136     Freddie Mac REMICS (b),(d)   US0001M + 6.000%   4.0010   05/15/46     38,373  
  464,507     Freddie Mac REMICS (b),(d)   US0001M + 6.000%   4.0010   09/15/46     78,377  
  856,751     Freddie Mac REMICS (b),(d)   US0001M + 6.100%   3.8410   08/25/50     151,526  
  607,892     Freddie Mac REMICS (d)       2.5000   02/25/51     76,582  
  1,176,325     Freddie Mac REMICS (d)       4.5000   03/25/51     225,769  
  1,214,728     Freddie Mac REMICS (d)       4.0000   05/25/51     215,804  
  1,238,851     Freddie Mac REMICS (d)       3.5000   12/25/51     202,278  
  258,691     Freddie Mac REMICS (b),(d)   US0001M + 5.900%   3.9010   01/15/54     32,388  
  243,249     Freddie Mac Strips (d)       8.0000   08/01/27     33,326  
  147,614     Freddie Mac Strips (d)       7.0000   03/15/32     30,155  
  4,641,032     Freddie Mac Strips (d)       3.5000   12/15/33     541,661  
  222,030     Freddie Mac Strips (d)       4.5000   09/15/35     30,333  
  312,750     Freddie Mac Strips (d)       5.0000   04/15/36     52,985  
  355,811     Freddie Mac Strips (d)       5.5000   07/15/36     77,173  
  60,019     Freddie Mac Strips (d)       6.0000   08/15/36     11,232  
  533,495     Freddie Mac Strips (d)       5.0000   09/15/36     99,401  
  886,809     Freddie Mac Strips (d)       5.5000   12/15/36     155,071  
  178,379     Freddie Mac Strips (d)       4.5000   05/15/40     27,489  
  396,843     Freddie Mac Strips (b),(d)       4.0000   01/15/43     61,177  

See accompanying notes to financial statements.

9

Anfield Universal Fixed Income ETF
SCHEDULE OF INVESTMENTS (Continued)
July 31, 2022

 

Principal
Amount ($)
        Spread   Coupon Rate
(%)
  Maturity   Fair Value  
        COLLATERALIZED MORTGAGE OBLIGATIONS — 12.5% (Continued)    
  1,426,651     Freddie Mac Strips (d)       5.0000   12/15/43   $ 264,507  
  834,625     Freddie Mac Strips (b),(d)       4.0000   10/15/47     131,914  
  1,164,285     Freddie Mac Strips (b),(d)       3.5000   06/15/50     178,662  
  743,948     Government National Mortgage Association (d)       5.0000   05/20/34     99,108  
  477,404     Government National Mortgage Association (b),(d)   US0001M + 7.100%   4.9740   06/20/34     53,302  
  28,119     Government National Mortgage Association (b)   US0001M + 27.500%   16.7200   12/16/34     33,220  
  159,806     Government National Mortgage Association (b),(d)   US0001M + 4.180%   2.0540   07/20/37     4,467  
  180,589     Government National Mortgage Association (b),(d)   US0001M + 6.500%   4.3440   01/16/38     22,690  
  99,743     Government National Mortgage Association (b),(d)   US0001M + 6.460%   4.3340   02/20/38     2,699  
  1,256,306     Government National Mortgage Association (b),(d)   US0001M + 6.490%   4.3640   02/20/38     99,567  
  148,593     Government National Mortgage Association (b),(d)   US0001M + 6.470%   4.3440   03/20/38     9,347  
  125,028     Government National Mortgage Association (b),(d)   US0001M + 6.270%   4.1440   04/20/38     301  
  182,721     Government National Mortgage Association (b),(d)   US0001M + 6.250%   4.0940   06/16/38     19,615  
  153,056     Government National Mortgage Association (b),(d)   US0001M + 6.250%   4.1240   06/20/38     15,107  
  75,432     Government National Mortgage Association (b),(d)   US0001M + 7.300%   5.1740   12/20/38     6,087  
  131,445     Government National Mortgage Association (b),(d)   US0001M + 5.950%   3.8240   06/20/39     6,758  
  183,146     Government National Mortgage Association (b),(d)   US0001M + 6.550%   4.3940   07/16/39     6,661  
  448,330     Government National Mortgage Association (b),(d)       3.4680   02/20/40     42,903  
  86,566     Government National Mortgage Association (b),(d)   US0001M + 6.000%   3.8740   09/20/40     10,897  
  1,385,405     Government National Mortgage Association (b),(d)   US0001M + 6.020%   3.8640   10/16/40     178,818  
  150,265     Government National Mortgage Association (b),(d)   US0001M + 6.050%   3.8940   11/16/40     20,354  
  597,791     Government National Mortgage Association (d)       4.0000   01/20/41     45,508  
  180,317     Government National Mortgage Association (d)       4.0000   03/16/41     22,759  
  427,930     Government National Mortgage Association (b),(d)   US0001M + 6.690%   4.5340   11/16/41     64,448  
  144,122     Government National Mortgage Association (d)       3.5000   01/20/43     25,880  
  340,770     Government National Mortgage Association (d)       3.5000   04/20/43     36,076  
  1,527,140     Government National Mortgage Association (d)       4.0000   08/20/43     133,223  
  107,623     Government National Mortgage Association (b),(d)   US0001M + 6.100%   3.9740   11/20/43     14,419  
  231,107     Government National Mortgage Association (b),(d)   US0001M + 6.100%   3.9740   04/20/44     31,109  
  428,671     Government National Mortgage Association (b),(d)   US0001M + 5.600%   3.4440   06/16/44     47,995  
  113,049     Government National Mortgage Association (d)       4.0000   10/20/44     9,409  
  1,714,373     Government National Mortgage Association (d)       5.0000   10/20/44     340,506  
  1,649,756     Government National Mortgage Association (d)       4.0000   11/20/44     162,801  
  648,329     Government National Mortgage Association (b),(d)   US0001M + 5.600%   3.4740   02/20/45     74,841  

See accompanying notes to financial statements.

10

Anfield Universal Fixed Income ETF
SCHEDULE OF INVESTMENTS (Continued)
July 31, 2022

 

Principal             Coupon Rate          
Amount ($)         Spread   (%)   Maturity   Fair Value  
        COLLATERALIZED MORTGAGE OBLIGATIONS — 12.5% (Continued)    
  409,600     Government National Mortgage Association (d)       5.5000   03/20/45   $ 79,971  
  564,436     Government National Mortgage Association (b),(d)   US0001M + 5.600%   3.4740   05/20/45     63,092  
  104,443     Government National Mortgage Association (d)       4.0000   06/20/45     11,052  
  416,447     Government National Mortgage Association (d)       4.0000   07/20/45     32,150  
  657,828     Government National Mortgage Association (b),(d)   US0001M + 6.200%   4.0740   10/20/45     106,961  
  379,590     Government National Mortgage Association (d)       4.5000   11/16/45     75,341  
  561,504     Government National Mortgage Association (b),(d)   US0001M + 5.650%   3.5240   01/20/46     71,084  
  220,640     Government National Mortgage Association (b),(d)   US0001M + 6.100%   3.9740   01/20/46     28,879  
  1,153,648     Government National Mortgage Association (b),(d)   US0001M + 6.100%   3.9740   09/20/46     148,020  
  230,645     Government National Mortgage Association (d)       3.5000   10/20/46     41,177  
  235,729     Government National Mortgage Association (d)       5.5000   05/16/47     45,463  
  364,222     Government National Mortgage Association (d)       4.0000   01/20/48     66,118  
  23,706,507     Government National Mortgage Association (b),(d)   US0001M + 6.200%   0.1500   08/20/48     128,255  
  244,849     Government National Mortgage Association (d)       5.5000   09/20/48     35,579  
  367,961     Government National Mortgage Association (d)       5.5000   10/20/48     67,454  
  583,001     Government National Mortgage Association (b),(d)   US0001M + 6.050%   3.9240   01/20/49     68,516  
  1,763,679     Government National Mortgage Association (d)       3.5000   04/20/50     274,891  
  809,838     Government National Mortgage Association (b),(d)   US0001M + 6.300%   4.1740   11/20/50     128,535  
  1,841,630     Government National Mortgage Association (d)       2.5000   07/20/51     206,431  
  2,568,046     Government National Mortgage Association (d)       3.0000   08/20/51     331,180  
  3,226,209     Government National Mortgage Association (b),(d)       2.5190   10/20/69     209,336  
        TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $17,670,160)       15,174,433  
                             
Principal             Coupon Rate          
Amount ($)         Spread   (%)   Maturity   Fair Value  
        CORPORATE BONDS — 45.1%                    
        AEROSPACE & DEFENSE — 0.7%                    
  500,000     Boeing Company (The)       1.9500   02/01/24     485,139  
  325,000     Howmet Aerospace, Inc.       5.1250   10/01/24     327,714  
                          812,853  
        ASSET MANAGEMENT — 2.2%                    
  1,480,000     FS KKR Capital Corporation       4.1250   02/01/25     1,421,980  
  1,250,000     Icahn Enterprises, L.P. / Icahn Enterprises Finance Corporation       4.7500   09/15/24     1,226,408  
                          2,648,388  

See accompanying notes to financial statements.

11

Anfield Universal Fixed Income ETF
SCHEDULE OF INVESTMENTS (Continued)
July 31, 2022

 

Principal             Coupon Rate          
Amount ($)         Spread   (%)   Maturity   Fair Value  
        CORPORATE BONDS — 45.1% (Continued)                    
        AUTOMOTIVE — 4.8%                    
  500,000     Fiat Chrysler Automobiles N.V.       5.2500   04/15/23   $ 502,540  
  450,000     Ford Motor Credit Company, LLC (b)   US0003M + 1.080%   2.3660   08/03/22     449,929  
  350,000     Ford Motor Credit Company, LLC       3.3500   11/01/22     349,333  
  675,000     Ford Motor Credit Company, LLC       3.3700   11/17/23     662,597  
  850,000     Ford Motor Credit Company, LLC       3.8100   01/09/24     840,617  
  764,000     Ford Motor Credit Company, LLC       3.6640   09/08/24     743,216  
  777,000     Ford Motor Credit Company, LLC       4.6870   06/09/25     772,272  
  500,000     Ford Motor Credit Company, LLC       5.1250   06/16/25     500,000  
  1,083,000     Ford Motor Credit Company, LLC       3.3750   11/13/25     1,027,673  
                          5,848,177  
        BANKING — 7.0%                    
  485,000     Bank of Ireland Group plc (a)       4.5000   11/25/23     484,695  
  1,000,000     BBVA Bancomer S.A. (a)       6.7500   09/30/22     1,002,545  
  1,002,000     BNP Paribas S.A. (a)       4.3750   09/28/25     994,272  
  850,000     BPCE S.A. (a)       5.1500   07/21/24     850,124  
  628,000     Citigroup, Inc. (b)   US0003M + 4.068%   5.9500   07/30/67     625,644  
  490,000     Danske Bank A/S (a)       3.8750   09/12/23     488,411  
  1,000,000     First Citizens BancShares, Inc. (a),(b)   US0003M + 3.972%   5.8010   06/15/70     948,750  
  1,463,000     First Horizon National Corporation       3.5500   05/26/23     1,459,801  
  500,000     Natwest Group plc       3.8750   09/12/23     499,232  
  800,000     Societe Generale S.A. (a)       4.2500   04/14/25     789,167  
  381,000     Sumitomo Mitsui Financial Group, Inc. (a)       4.4360   04/02/24     381,900  
                          8,524,541  
        BIOTECH & PHARMA — 3.0%                    
  1,350,000     Bausch Health Companies, Inc. (a)       9.0000   12/15/25     980,093  
  1,663,000     Teva Pharmaceutical Finance Netherlands III BV       2.8000   07/21/23     1,631,303  
  750,000     Teva Pharmaceutical Finance Netherlands III BV       6.0000   04/15/24     757,496  
  300,000     Teva Pharmaceutical Finance Netherlands III BV       6.0000   04/15/24     302,999  
                          3,671,891  
        CABLE & SATELLITE — 1.4%                    
  1,736,000     CSC Holdings, LLC       5.8750   09/15/22     1,734,004  

See accompanying notes to financial statements.

12

Anfield Universal Fixed Income ETF
SCHEDULE OF INVESTMENTS (Continued)
July 31, 2022

 

Principal             Coupon Rate          
Amount ($)         Spread   (%)   Maturity   Fair Value  
        CORPORATE BONDS — 45.1% (Continued)                    
        CHEMICALS — 0.2%                    
  200,000     Air Liquide Finance S.A. (a)       2.2500   09/27/23   $ 197,912  
                             
        COMMERCIAL SUPPORT SERVICES — 2.2%                    
  2,595,000     Aramark Services, Inc. (a)       6.3750   05/01/25     2,611,193  
                             
        CONTAINERS & PACKAGING — 0.9%                    
  1,117,000     Graphic Packaging International, LLC       4.8750   11/15/22     1,119,262  
                             
        DIVERSIFIED INDUSTRIALS — 0.2%                    
  250,000     General Electric Company Series D (b)   US0003M + 3.330%   5.1590   06/15/69     234,063  
                             
        ELECTRIC UTILITIES — 2.0%                    
  820,000     Electricite de France S.A. (a),(b)   USSW10 + 3.709%   5.2500   01/29/49     788,225  
  350,000     Electricite de France S.A. (b)   USSW10 + 3.709%   5.2500   07/20/70     336,438  
  955,000     Electricite de France S.A. (a),(b)   USSW10 + 3.041%   5.6250   07/22/70     905,311  
  150,000     FirstEnergy Corporation       2.0500   03/01/25     142,478  
  265,000     Pennsylvania Electric Company (a)       4.1500   04/15/25     262,927  
                          2,435,379  
        INSTITUTIONAL FINANCIAL SERVICES — 1.6%                    
  1,000,000     Bank of New York Mellon Corporation (The) Series H (b)   H15T5Y + 3.352%   3.7000   03/20/70     923,487  
  250,000     Credit Suisse Group A.G. (a),(b)   US0003M + 1.200%   2.9970   12/14/23     248,605  
  750,000     Goldman Sachs Group, Inc. (The)       3.3750   12/21/23     743,138  
                          1,915,230  
        LEISURE FACILITIES & SERVICES — 2.5%                    
  1,576,000     Carnival Corporation       7.2000   10/01/23     1,572,783  
  625,000     Marriott International, Inc.       2.1250   10/03/22     623,503  
  835,000     Royal Caribbean Cruises Ltd.       5.2500   11/15/22     829,589  
                          3,025,875  
        OIL & GAS PRODUCERS — 1.4%                    
  245,000     DCP Midstream Operating, L.P.       3.8750   03/15/23     246,299  
  401,000     Energy Transfer Operating, L.P.       3.6000   02/01/23     400,045  
  500,000     Energy Transfer Operating, L.P.       4.2500   03/15/23     500,365  
  500,000     Plains All American Pipeline, L.P. / PAA Finance       3.8500   10/15/23     498,782  
                          1,645,491  

See accompanying notes to financial statements.

13

Anfield Universal Fixed Income ETF
SCHEDULE OF INVESTMENTS (Continued)
July 31, 2022

 

Principal             Coupon Rate          
Amount ($)         Spread   (%)   Maturity   Fair Value  
        CORPORATE BONDS — 45.1% (Continued)                    
        PUBLISHING & BROADCASTING — 0.0% (e)                    
  26,000     Pearson Funding plc (a)       3.2500   05/08/23   $ 25,597  
                             
        REAL ESTATE INVESTMENT TRUSTS — 3.6%                    
  850,000     American Tower Trust #1 (a)       3.0700   03/15/23     845,567  
  100,000     Crown Castle International Corporation       3.1500   07/15/23     99,349  
  1,960,000     Service Properties Trust       4.6500   03/15/24     1,787,903  
  1,705,000     VICI Properties, L.P. / VICI Note Company, Inc. (a)       4.6250   06/15/25     1,664,233  
                          4,397,052  
        RETAIL - DISCRETIONARY — 1.3%                    
  1,605,000     Penske Automotive Group, Inc.       3.5000   09/01/25     1,549,660  
                             
        SOFTWARE — 0.2%                    
  300,000     Oracle Corporation       2.4000   09/15/23     296,781  
                             
        SPECIALTY FINANCE — 3.4%                    
  500,000     AerCap Ireland Capital DAC / AerCap Global       1.1500   10/29/23     480,292  
  500,000     Ally Financial, Inc.       3.0500   06/05/23     496,517  
  500,000     Ally Financial, Inc.       1.4500   10/02/23     486,140  
  1,021,000     Credit Acceptance Corporation (a)       5.1250   12/31/24     981,047  
  252,000     Engie S.A. (a)       2.8750   10/10/22     251,425  
  500,000     ILFC E-Capital Trust I (a),(b)   US0003M + 1.550%   4.8500   12/21/65     376,706  
  1,025,000     OneMain Finance Corporation       6.1250   03/15/24     1,012,362  
                          4,084,489  
        TECHNOLOGY SERVICES — 0.8%                    
  930,000     Nielsen Company Luxembourg SARL (The) (a)       5.0000   02/01/25     915,445  
                             
        TELECOMMUNICATIONS — 2.2%                    
  2,650,000     Telecom Italia SpA (a)       5.3030   05/30/24     2,580,106  
                             
        TRANSPORTATION & LOGISTICS — 3.5%                    
  805,530     American Airlines 2013-2 Class A Pass Through Trust       4.9500   01/15/23     790,585  
  1,044,902     American Airlines 2015-2 Class B Pass Through Trust       4.4000   09/22/23     996,998  
  1,175,000     Delta Air Lines, Inc.       2.9000   10/28/24     1,119,111  

See accompanying notes to financial statements.

14

Anfield Universal Fixed Income ETF
SCHEDULE OF INVESTMENTS (Continued)
July 31, 2022

 

Principal             Coupon Rate          
Amount ($)         Spread   (%)   Maturity   Fair Value  
        CORPORATE BONDS — 45.1% (Continued)                    
        TRANSPORTATION & LOGISTICS — 3.5% (Continued)                    
  200,000     Penske Truck Leasing Company LP / PTL Finance (a)       4.1250   08/01/23   $ 200,130  
  1,198,986     United Airlines 2014-2 Class B Pass Through Trust       4.6250   09/03/22     1,198,082  
                          4,304,906  
        TOTAL CORPORATE BONDS (Cost $56,892,505)                 54,578,295  
                             
Principal             Coupon Rate          
Amount ($)         Spread   (%)   Maturity   Fair Value  
        TERM LOANS — 7.8%                    
        COMMERCIAL SUPPORT SERVICES — 0.7%                    
  876,858     Aramark Services, Inc. (b)   US0001M + 2.500%   2.6010   04/01/28     857,400  
                             
        LEISURE FACILITIES & SERVICES — 1.7%                    
  994,924     Carnival Corporation (b)   US0001M + 3.000%   3.7500   06/30/25     952,466  
  956,852     Cedar Fair LP (b)   US0003M + 1.750%   1.8650   04/13/24     950,872  
  250,000     Scientific Games Corporation (b)   TSFR1M + 3.000%   5.0440   04/07/29     244,896  
                          2,148,234  
        RETAIL - DISCRETIONARY — 0.8%                    
  992,500     Great Outdoors Group, LLC (b)   US0001M + 3.750%   5.4160   03/05/28     910,931  
                             
        SEMICONDUCTORS — 0.4%                    
  500,000     MKS Instruments, Inc. (b)   TSFR1M + 2.250%   2.7500   04/11/29     491,250  
                             
        SOFTWARE — 1.0%                    
  1,246,875     Sunshine Software Merger Sub, Inc. (b)   US0001M + 3.750%   4.2500   09/21/28     1,167,779  
                             
        TRANSPORTATION & LOGISTICS — 3.2%                    
  1,000,000     AAdvantage Loyalty IP Ltd. (b)   US0003M + 4.750%   7.4600   03/10/28     987,500  
  1,000,000     Air Canada (b)   US0001M + 3.500%   4.2500   07/27/28     966,070  
  1,977,475     United Airlines, Inc. (b)   US0001M + 3.750%   6.5330   04/14/28     1,911,477  
                          3,865,047  

See accompanying notes to financial statements.

15

Anfield Universal Fixed Income ETF
SCHEDULE OF INVESTMENTS (Continued)
July 31, 2022

 

Principal             Coupon Rate          
Amount ($)         Spread   (%)   Maturity   Fair Value  
        TERM LOANS — 7.8% (Continued)                    
        TOTAL TERM LOANS (Cost $9,814,095)                $ 9,440,641  
                             
        TOTAL INVESTMENTS - 97.1% (Cost $126,802,560)               $ 117,630,110  
        OTHER ASSETS IN EXCESS OF LIABILITIES- 2.9%                 3,503,609  
        NET ASSETS - 100.0%               $ 121,133,719  

 

A/S - Anonim Sirketi
   
CLO - Collateralized Loan Obligation
   
ETF - Exchange-Traded Fund
   
LLC - Limited Liability Company
   
LP - Limited Partnership
   
LTD - Limited Company
   
NV - Naamioze Vennootschap
   
PLC - Public Limited Company
   
REMIC - Real Estate Mortgage Investment Conduit
   
S.A. - Société Anonyme
   
SPDR - Standard & Poor’s Depositary Receipt
   
H15T5Y US Treasury Yield Curve Rate T Note Constant Maturity 5 Year
   
TSFR1M Term SOFR 1 Month
   
TSFR3M Term SOFR 3 Month
   
US0001M ICE LIBOR USD 1 Month
   
US0003M ICE LIBOR USD 3 Month
   
USSW10 USD SWAP SEMI 30/360 10Y

 

(a) Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. The security may be resold in transactions exempt from registration, normally to qualified institutional buyers.  As of July 31, 2022 the total market value of 144A securities is $48,318,388 or 39.9% of net assets.
   
(b) Variable or floating rate security, the interest rate of which adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets.
   
(c) Step bond.  Coupon rate is fixed rate that changes on a specified date.  The rate shown is the current rate at July 31, 2022.
   
(d) Interest only securities.
   
(e) Percentage rounds to less than 0.1%.

See accompanying notes to financial statements.

16

Anfield Universal Fixed Income ETF
STATEMENT OF ASSETS AND LIABILITIES
July 31, 2022

 

ASSETS        
Investment securities:        
At cost   $ 126,802,560  
At fair value   $ 117,630,110  
Cash     3,101,859  
Dividends and interest receivable     1,057,412  
Deposits for futures contracts     468,607  
Prepaid expenses and other assets     1,262  
TOTAL ASSETS     122,259,250  
         
LIABILITIES        
Payable for securities purchased     1,002,484  
Investment advisory fees payable     77,662  
Payable to related parties     11,915  
Accrued expenses and other liabilities     33,470  
TOTAL LIABILITIES     1,125,531  
NET ASSETS   $ 121,133,719  
         
Composition of Net Assets:        
Paid in capital   $ 133,594,543  
Accumulated losses     (12,460,824 )
NET ASSETS   $ 121,133,719  
         
Net Asset Value Per Share:        
Net Assets   $ 121,133,719  
Shares of beneficial interest outstanding (a)     13,575,000  
Net asset value (Net Assets ÷ Shares Outstanding), offering price and redemption price per share   $ 8.92  

 

(a) Unlimited number of shares of beneficial interest authorized, no par value.

 

See accompanying notes to financial statements.

17

Anfield Universal Fixed Income ETF
STATEMENT OF OPERATIONS
For the Year Ended July 31, 2022

 

INVESTMENT INCOME        
Interest   $ 4,001,552  
Dividends     346,219  
TOTAL INVESTMENT INCOME     4,347,771  
         
EXPENSES        
Investment advisory fees     971,321  
Administration fees     153,105  
Custodian fees     26,663  
Audit fees     23,149  
Legal fees     22,756  
Compliance officer fees     21,347  
Transfer agent fees     11,712  
Trustees fees and expenses     10,226  
Printing and postage expenses     9,527  
Insurance expense     7,850  
Other expenses     8,692  
TOTAL EXPENSES     1,266,348  
         
NET INVESTMENT INCOME     3,081,423  
         
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS        
Net realized loss from investments     (458,234 )
Net realized loss from redemptions in-kind     (144,757 )
Net realized loss from futures contracts     (1,277,681 )
Net change in unrealized depreciation on investments     (8,925,040 )
NET REALIZED AND UNREALIZED LOSS FROM INVESTMENTS     (10,805,712 )
         
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS   $ (7,724,289 )

See accompanying notes to financial statements.

18

Anfield Universal Fixed Income ETF
STATEMENTS OF CHANGES IN NET ASSETS

 

    For the     For the  
    Year Ended     Year Ended  
    July 31, 2022     July 31, 2021  
FROM OPERATIONS                
Net investment income   $ 3,081,423     $ 1,643,848  
Net realized loss from investments and options purchased     (458,234 )     (371,393 )
Net realized gain (loss) from redemptions in-kind     (144,757 )     73,511  
Distributions of realized gains by underlying investment companies           6,852  
Net realized loss from futures contracts     (1,277,681 )     (713,916 )
Net change in unrealized depreciation on investments     (8,925,040 )     (778,024 )
Net change in unrealized depreciation on futures contracts           (203,268 )
Net decrease in net assets resulting from operations     (7,724,289 )     (342,390 )
                 
DISTRIBUTIONS TO SHAREHOLDERS                
Total distributions paid     (3,064,798 )     (1,724,438 )
Net decrease in net assets from distribution to shareholders     (3,064,798 )     (1,724,438 )
                 
FROM SHARES OF BENEFICIAL INTEREST                
Proceeds from shares sold     19,413,823       55,426,015  
Payments for shares redeemed     (16,669,551 )     (45,937,067 )
Net increase in net assets from shares of beneficial interest     2,744,272       9,488,948  
                 
TOTAL INCREASE (DECREASE) IN NET ASSETS     (8,044,815 )     7,422,120  
                 
NET ASSETS                
Beginning of the year     129,178,534       121,756,414  
End of the year   $ 121,133,719     $ 129,178,534  
                 
SHARE ACTIVITY                
Shares sold     2,075,000       5,675,000  
Shares redeemed     (1,825,000 )     (4,700,000 )
Net increase in shares of beneficial interest outstanding     250,000       975,000  

See accompanying notes to financial statements.

19

Anfield Universal Fixed Income ETF
FINANCIAL HIGHLIGHTS

 

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout the Periods

 

    For the     For the     For the     For the  
    Year Ended     Year Ended     Year Ended     Period Ended  
    July 31, 2022     July 31, 2021     July 31, 2020     July 31, 2019 *  
                         
Net asset value, beginning of year/period   $ 9.69     $ 9.86     $ 9.84     $ 10.00  
Activity from investment operations:                                
Net investment income (a)     0.22       0.13       0.12       0.22  
Net realized and unrealized gain (loss) on investments     (0.80 )     (0.16 )     0.01       (0.17 )
Total from investment operations     (0.58 )     (0.03 )     0.13       0.05  
Less distributions from:                                
Net investment income     (0.19 )     (0.14 )     (0.11 )     (0.20 )
Net realized gains                       (0.01 )
Total distributions     (0.19 )     (0.14 )     (0.11 )     (0.21 )
Net asset value, end of year/period   $ 8.92     $ 9.69     $ 9.86     $ 9.84  
Market price, end of year/period   $ 8.90     $ 9.70     $ 9.86     $ 9.88  
Total return (b)(c)     (5.73 )%     (0.32 )%     1.88 %     0.52 % (i)(j)
Market price total return     (6.03 )%     (0.22 )%     1.47 %     0.53 % (i)
Net assets, at end of year/period (000)s   $ 121,134     $ 129,179     $ 121,756     $ 27,801  
Ratio of gross expenses to average net assets (d)(e)     0.98 %     1.00 %     1.23 %     1.30 % (k)
Ratio of net expenses to average net assets (e)(f)     0.98 %     1.00 %     1.21 %     0.95 % (k)
Ratio of net investment income to average net assets (g)     2.37 %     1.35 %     1.21 %     2.56 % (k)
Portfolio Turnover Rate (h)     53 %     135 %     227 %     330 % (i)
                                 

* The Anfield Universal Fixed Income ETF commenced operations on

 

(a) Per share amounts calculated using the average shares method, which more appropriately represents the per share data for the period.

 

(b) Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of the period. Distributions are assumed, for the purpose of this calculation, to be reinvested at the ex-dividend date net asset value per share on their respective payment dates. Total return would have been lower absent fee waiver/expense reimbursement.

 

(c) Includes adjustments in accordance with accounting principles generally accepted in the United States and, consequently, the net asset value 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.

 

(d) Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the Adviser.

 

(e) Does not include the expenses of other investment companies in which the fund invests.

 

(f) Represents the ratio of expenses to average net assets inclusive of fee waivers and/or expense reimbursements by the Adviser.

 

(g) Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

 

(h) Portfolio turnover rate excludes securities received or delivered from in-kind transactions.

 

(i) Not annualized.

 

(j) Represents total return based on net asset values per share from commencement of investment operations on September 17, 2018 through July 31, 2019. Total return based on net asset value per share, as of the close of business on the day of commencement of trading on the BATS on September 18, 2018

 

(k) Annualized.

 

See accompanying notes to financial statements.

20

Anfield Universal Fixed Income ETF
NOTES TO FINANCIAL STATEMENTS
July 31, 2022

 

1. ORGANIZATION

 

The Anfield Universal Fixed Income ETF (the “Fund”) is a series of shares of beneficial interest of the Two Roads Shared Trust (the “Trust”), a statutory trust organized under the laws of the State of Delaware on June 8, 2012, and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. The Fund commenced operations on September 17, 2018. The Fund’s investment objective is to seek current income. The Fund is an actively managed ETF that normally invests at least 80% of its net assets, including any borrowings for investment purposes, in a diversified portfolio of fixed income instruments.

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

The following is a summary of significant accounting policies followed by the Fund in preparation of its financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board’s (“FASB”) Accounting Standard Codification Topic 946 “Financial Services – Investment Companies”.

 

Security Valuation – Securities listed on an exchange are valued at the last reported sale price at the close of the regular trading session of the exchange on the business day the value is being determined, or in the case of securities listed on NASDAQ at the NASDAQ Official Closing Price (“NOCP”). In the absence of a sale such securities shall be valued at the mean between the last bid and ask prices on the day of valuation. Debt securities (other than short -term obligations) are valued each day by an independent pricing service approved by the Board of Trustees (the “Board”) using methods which include current market quotations from a major market maker in the securities and based on methods which include the consideration of yields or prices of securities of comparable quality, coupon, maturity and type. Futures and future options are valued at the final settled price or, in the absence of a settled price,- at the last sale price on the day of valuation. The independent- pricing service does not distinguish between smaller sized bond positions known as “odd lots” and larger institutional sized bond positions known as “round lots”. The Fund may fair value a particular bond if the adviser does not believe that the round lot value provided by the independent pricing service reflects fair value of the Fund’s holding. Short - term debt obligations having 60 days or less remaining until maturity, at time of purchase, may be valued at amortized cost.

 

The Fund may hold securities, such as private investments, interests in commodity pools, other non-traded securities or temporarily illiquid securities, for which market quotations are not readily available or are determined to be unreliable. These securities will be valued using the “fair value” procedures approved by the Board. The Board has delegated execution of these procedures to a Fair Value Committee composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) adviser. The committee may also enlist third party consultants such as a valuation specialist at a public accounting firm, valuation consultant, or financial officer of a security issuer on an as-needed basis to assist in determining a security-specific fair value. The Board has also engaged a third party valuation firm, as needed, to attend valuation meetings held by the Trust, review minutes of such meetings and report to the Board on a quarterly basis. The Board reviews and considers the determinations reached by the Fair Value Committee in ratifying the Fair Value Committee’s application of the fair valuation methodologies employed.

 

Exchange Traded Funds (“ETFs”) - The Fund may invest in ETFs. ETFs are a type of index fund bought and sold on a securities exchange. An ETF trades like common stock and represents a fixed portfolio of securities designed to track the performance and dividend yield of a particular domestic or foreign market index. The Fund may purchase an ETF to temporarily gain exposure to a portion of the U.S. or a foreign market. The risks of owning an ETF generally reflect the risks of owning the underlying securities they are designed to track, although the lack of liquidity on an ETF could result in it being more volatile. Additionally, ETFs have fees and expenses that reduce their value.

21

Anfield Universal Fixed Income ETF
NOTES TO FINANCIAL STATEMENTS (Continued)
July 31, 2022

 

Futures Contracts – The Fund may purchase or sell futures contracts to gain exposure to, or hedge against, changes in the value of equities, interest rates, foreign currencies, or commodities. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral for the account of the broker (the Fund’s agent in acquiring the futures position). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by “marking to market” on a daily basis to reflect the market value of the contracts at the end of each day’s trading. Variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. When the contracts are closed, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. If the Fund was unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. The Fund segregates liquid securities having a value at least equal to the amount of the current obligation under any open futures contract. Risks may exceed amounts recognized in the consolidated statement of assets and liabilities. With futures, there is minimal counterparty credit risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

 

Option Transactions – The Fund is subject to equity price risk in the normal course of pursuing its investment objective and may purchase or sell options to help hedge against risk. When the Fund writes a call option, an amount equal to the premium received is included in the statement of assets and liabilities as a liability. The amount of the liability is subsequently marked-to -market to reflect the current market value of the option. If an option expires on its stipulated expiration date or if the Fund enters into a closing purchase transaction, a gain or loss is realized. If a written call option is exercised, a gain or loss is realized for the sale of the underlying security and the proceeds from the sale are increased by the premium originally received. As writer of an option, the Fund has no control over whether the option will be exercised and, as a result, retains the market risk of an unfavorable change in the price of the security underlying the written option.

 

The Fund may purchase put and call options. Put options are purchased to hedge against a decline in the value of securities held in the Fund’s portfolio. If such a decline occurs, the put options will permit the Fund to sell the securities underlying such options at the exercise price, or to close out the options at a profit. The premium paid for a put or call option plus any transaction costs will reduce the benefit, if any, realized by the Fund upon exercise of the option, and, unless the price of the underlying security rises or declines sufficiently, the option may expire worthless to the Fund. In addition, in the event that the price of the security in connection with which an option was purchased moves in a direction favorable to the Fund, the benefits realized by the Fund as a result of such favorable movement will be reduced by the amount of the premium paid for the option and related transaction costs. Written and purchased options are non-income producing securities. With purchased options, there is minimal counterparty risk to the Fund since these options are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded options, guarantees against a possible default.

22

Anfield Universal Fixed Income ETF
NOTES TO FINANCIAL STATEMENTS (Continued)
July 31, 2022

 

Fair Valuation Process – The applicable investments are valued collectively via inputs from each group within the Fair Value Committee. For example, fair value determinations are required for the following securities: (i) securities for which market quotations are insufficient or not readily available on a particular business day (including securities for which there is a short and temporary lapse in the provision of a price by the regular pricing source), (ii) securities for which, in the judgment of the Adviser, the prices or values available do not represent the fair value of the instrument. Factors which may cause the Adviser to make such a judgment include, but are not limited to, the following: only a bid price or an asked price is available; the spread between bid and asked prices is substantial; the frequency of sales; the thinness of the market; the size of reported trades; and actions of the securities markets, such as the suspension or limitation of trading; (iii) securities determined to be illiquid; (iv) securities with respect to which an event that will affect the value thereof has occurred (a “significant event”) since the closing prices were established on the principal exchange on which they are traded, but prior to the Fund’s calculation of its net asset value. Restricted or illiquid securities, such as private investments or non- traded securities are valued via inputs from the Adviser based upon the current bid for the security from two or more independent dealers or other parties reasonably familiar with the facts and circumstances of the security (who should take into consideration all relevant factors as may be appropriate under the circumstances). If the Adviser is unable to obtain a current bid from such independent dealers or other independent parties, the Fair Value Committee shall determine the fair value of such security using the following factors: (i) the type of security; (ii) the cost at date of purchase; (iii) the size and nature of the Fund’s holdings; (iv) the discount from market value of unrestricted securities of the same class at the time of purchase and subsequent thereto; (v) information as to any transactions or offers with respect to the security; (vi) the nature and duration of restrictions on disposition of the security and the existence of any registration rights; (vii) how the yield of the security compares to similar securities of companies of similar or equal creditworthiness; (viii) the level of recent trades of similar or comparable securities; (ix) the liquidity characteristics of the security; (x) current market conditions; and (xi) the market value of any securities into which the security is convertible or exchangeable.

 

Valuation of Underlying Funds - The Fund may invest in portfolios of open-end or closed- end investment companies (the “Underlying Funds”). Investment companies are valued at their respective net asset values as reported by such investment companies. Open-end investment companies value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value to the methods established by the board of directors of the open-end funds. The shares of many closed-end investment companies and ETFs, after their initial public offering, frequently trade at a price per share, which is different than the net asset value per share. The difference represents a market premium or market discount of such shares. There can be no assurances that the market discount or market premium on shares of any closed-end investment company or ETF purchased by the Fund will not change.

 

Open -ended funds are valued at their respective net asset values as reported by such investment companies. The shares of many closed-end investment companies, after their initial public offering, frequently trade at a price per share, which is different than the net asset value per share. The difference represents a market premium or market discount of such shares. There can be no assurances that the market discount or market premium on shares of any closed-end investment company purchased by the Fund will not change.

 

The Fund utilizes various methods to measure the fair value of all of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:

 

Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Fund has 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, prepayment speeds, credit risk, yield curves, default rates and similar data.

 

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

23

Anfield Universal Fixed Income ETF
NOTES TO FINANCIAL STATEMENTS (Continued)
July 31, 2022

 

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

 

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize the inputs used as of July 31, 2022, for the Fund’s assets and liabilities measured at fair value:

 

Assets*   Level 1     Level 2     Level 3     Total  
Exchange-Traded Funds   $ 9,732,181     $     $     $ 9,732,181  
Asset Backed Securities           28,704,560             28,704,560  
Collateralized Mortgage           15,174,433             15,174,433  
Obligations                                
Corporate Bonds           54,578,295             54,578,295  
Term Loans           9,440,641             9,440,641  
Total   $ 9,732,181     $ 107,897,929     $     $ 117,630,110  

 

The Fund did not hold any Level 3 securities during the year.

 

* Refer to the Schedule of Investments for classifications.

 

Impact of Derivatives on the Statement of Assets and Liabilities and Statement of Operations

 

The derivative instruments outstanding as of July 31, 2022 and the amounts of realized and changes in unrealized gains and losses on derivative instruments during the year as disclosed in the Statement of Operations serve as indicators of the volume of derivative activity for the Fund.

 

The following is a summary of the location of derivative investments on the Fund’s Statement of Operations as of July 31, 2022:

 

Derivative Investment Type Location of Gain (Loss) on Derivatives
Futures contracts Net realized loss from futures contracts;

 

The following is a summary of the Fund’s realized gain (loss) and unrealized appreciation (depreciation) on derivative investments recognized in the Statement of Operations categorized by primary risk exposure for the year ended July 31, 2022:

 

Realized gain/(loss) on derivatives recognized in the Statement of Operations

 

Derivative Investment Type   Interest Rate Risk        Total for the Year Ended July 31, 2022  
Futures contracts   $ (1,277,681 )   $ (1,277,681 )

24

Anfield Universal Fixed Income ETF
NOTES TO FINANCIAL STATEMENTS (Continued)
July 31, 2022

 

Security Transactions and Related Income – Security transactions are accounted for on trade date basis. Interest income is recognized on an accrual basis. Discounts are accreted and premiums are amortized on securities purchased over the lives of the respective securities. Dividend income is recorded on the ex-dividend date. Realized gains or losses from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds. Due from broker, if any, balance is comprised of margin balance held at the broker.

 

Dividends and Distributions to Shareholders – Dividends from net investment income are declared and distributed monthly. Distributable net realized capital gains are declared and distributed annually. Dividends from net investment income and distributions from net realized gains are recorded on ex dividend date and determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either temporary (i.e., deferred losses, capital loss carry forwards) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification.

 

Federal Income Taxes – The Fund intends to continue to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Therefore, no provision for federal income tax is required. The Fund recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Fund’s tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on return filed for open tax years July 31, 2019 through July 31, 2021, or expected to be taken in the Fund’s July 31, 2022 tax returns. The Fund identified its major tax jurisdictions as U.S. Federal, Ohio and foreign jurisdictions where the Fund makes significant investments. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.

 

Expenses – Expenses of the Trust that are directly identifiable to a specific fund are charged to that fund. Expenses, which are not readily identifiable to a specific fund, are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative sizes of the funds in the Trust.

 

Indemnification – The Trust indemnifies its officers and trustees for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund expects the risk of loss due to these warranties and indemnities to be remote.

 

3. INVESTMENT TRANSACTIONS

 

For the year ended July 31, 2022, cost of purchases and proceeds from sales of portfolio securities (excluding in- kind transactions and short-term investments) for the Fund amounted to $66,620,287 and $67,282,911, respectively. For the year ended July 31, 2022, cost of purchases and proceeds from sales of in-kind transactions for the Fund amounted to $19,368,352, and $13,389,333, respectively.

 

4. INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PARTIES

 

Regents Park Funds, LLC serves as the Fund’s investment adviser (the “Adviser”). Pursuant to an Investment Advisory Agreement with the Fund, the Adviser, subject to the authority of the Board, is responsible for managing the day to day operations of the Fund, including: selecting the overall investment strategies; monitoring and evaluating Sub-Adviser (as defined below) performance; and providing related administrative services and facilities. Anfield Group, LLC (“Anfield Group”), which is wholly owned by the David Young and Sandra G. Glain Family Trust, wholly owns the Adviser. As compensation for its services, the Fund pays to the Adviser an advisory fee (computed daily and paid monthly) at an annual rate of 0.75% of its average daily net assets. For the year ended July 31, 2021 the Fund incurred advisory fees of $971,321.

25

Anfield Universal Fixed Income ETF
NOTES TO FINANCIAL STATEMENTS (Continued)
July 31, 2022

 

The Adviser has engaged Anfield Capital Management, LLC (“Anfield” or the “Sub-Adviser”) to serve as Sub-Adviser to the Fund. Anfield Group owns a majority interest in Anfield. The Sub-Adviser is an affiliate of the Adviser. The Sub-Adviser, with respect to the portion of the Fund’s assets allocated to the Sub -Adviser, is responsible for selecting investments and assuring that investments are made in accordance with the Fund’s investment objective, policies and restrictions. The Adviser compensates the Sub-Adviser for its services from the management fees received from the Fund, which are computed and accrued daily and paid monthly and does not impact the financial statements of the Fund.

 

The Adviser, pursuant to an Expense Limitation Agreement (the “Agreement”) has contractually agreed to reduce the Fund’s fees and/or absorb expenses of the Fund until at least November 30, 2022 to ensure that total annual Fund operating expenses after fee waiver and reimbursement (exclusive of any taxes, interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, indirect expenses, expenses of other investment companies in which the Fund may invest, or extraordinary expenses such as litigation) will not exceed 1.50% of average daily net assets. This Agreement may be terminated by the Fund’s Board of Trustees on 60 days’ written notice to the Adviser. These fee waivers and expense reimbursements are subject to possible recoupment from the Fund in future years on a rolling three-year basis (within the three years after the fees have been waived or reimbursed) if such recoupment can be achieved without exceeding the foregoing expense limit as well as any expense limitation that was in effect at the time the waiver or reimbursement was made. The expense limit in effect prior to its expiration on September 1, 2021 was 1.30%. If the Adviser waives any fee or reimburses any expense pursuant to its Agreement, and the Fund’s operating expenses are subsequently less than 1.50% of average daily net assets, the Adviser will be entitled to recoupment from the Fund for such waived fees or reimbursed expenses provided that such recoupment does not cause the Fund’s expenses to exceed the expense limitation in effect at the time of the waiver or reimbursement by the Adviser, which was 1.30% for the period prior to September 1, 2021 and 1.50% on or after September 1, 2021. If the Fund’s operating expenses subsequently exceed 1.50% per annum of average daily net assets recoupments shall be suspended. No recoupment amount will be paid to the Adviser in any fiscal quarter unless the Board has determined in advance that such recoupment is in the best interest of the Fund and its shareholders.

 

During the year ended July 31, 2022, the Adviser did not waive management fees or reimburse expenses. Subject to the conditions described above, the Adviser can recoup previously waived fees and reimbursed expenses $12,741 until July 31, 2023.

 

The Trust, with respect to the Fund, has adopted a distribution and service plan (“Plan”) pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, the Fund is authorized to pay distribution fees to Northern Lights Distributors (“NLD” or “the distributor”) and other firms that provide distribution and shareholder services (“Service Providers”). If a Service Provider provides these services, the Fund may pay fees at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 under the 1940 Act.

 

No distribution or service fees are currently paid by the Fund and there are no current plans to impose these fees. In the event Rule 12b-1 fees were charged, over time they would increase the cost of an investment in the Fund.

 

In addition, certain affiliates of the Distributor provide services to the Fund as follows:

 

Ultimus Fund Solutions, LLC (“UFS”) , an affiliate of the Distributor, provides administration, fund accounting, and transfer agent services to the Trust. Pursuant to separate servicing agreements with UFS, the Fund pays UFS customary fees for providing administration, fund accounting and transfer agency services to the Fund. Certain officers of the Trust are also officers of UFS and are not paid any fees directly by the Fund for servicing in such capacities.

 

BluGiant, LLC (“BluGiant”) , BluGiant, an affiliate of UFS and the Distributor, provides EDGAR conversion and filing services as well as print management services for the Fund on an ad-hoc basis. For the provision of these services, BluGiant receives customary fees from the Fund.

 

Northern Lights Compliance Services, LLC (“NLCS”) , an affiliate of UFS and the Distributor, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives customary fees from the Fund.

26

Anfield Universal Fixed Income ETF
NOTES TO FINANCIAL STATEMENTS (Continued)
July 31, 2022

 

5. CAPITAL SHARE TRANSACTIONS

 

Shares are not individually redeemable and may be redeemed by the Fund at NAV only in large blocks known as “Creation Units.” Shares are created and redeemed by the Fund only in Creation Unit size aggregations of 25,000 shares. Only Authorized Participants or transactions done through an Authorized Participant are permitted to purchase or redeem Creation Units from the Fund. 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 DTC participant and, in each case, must have executed a Participant Agreement with the Distributor. Such transactions are generally permitted on an in -kind basis, with a balancing cash component to equate the transaction to the NAV per share of the Fund on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances. In addition, the Fund may impose transaction fees on purchases and redemptions of Fund shares to cover the custodial and other costs incurred by the Funds in effecting trades. A fixed fee payable to the Custodian may be imposed on each creation and redemption transaction regardless of the number of Creation Units involved in the transaction (“Fixed Fee”). Purchases and redemptions of Creation Units for cash or involving cash-in-lieu are required to pay an additional variable charge to compensate the Fund and its ongoing shareholders for brokerage and market impact expenses relating to Creation Unit transactions (“Variable Charge,” and together with the Fixed Fee, the “Transaction Fees”). Transactions in capital shares for the Fund are disclosed in the Statements of Changes in Net Assets. The Transaction Fees for the Fund are listed in the table below:

 

  Minimum Additional Maximum Additional
Fee for In-Kind and Variable Charge for Variable Charge for
Cash Purchases Cash Purchases* Cash Purchases*
$150 20 bps 200 bps

 

* As a percentage of the amount invested.

 

6. PRINCIPAL INVESTMENT RISKS

 

The Fund’s investments in securities, financial instruments and derivatives expose it to various risks, certain of which are discussed below. Please refer to the Fund’s prospectus and statement of additional information for further information regarding the risks associated with the Fund’s investments which include, but are not limited to active trading risk, authorized participant concentration risk, bank loan risk, common stock risk, convertible securities risk, counterparty credit risk, credit risk, credit spread risk, currency risk, cybersecurity risk, derivatives risk, emerging markets risks, ETF structure risks, fixed income risk, fluctuation of net asset value risk, foreign (non-U.S.) investment risk, futures contract risk, gap risk, hedging transactions risk, high yield risk, index risk, investment companies and exchange- traded funds risk, issuer-specific risk, leveraging risk, LIBOR risk, liquidity risk, management risk, market risk, market events risk, MLP risk, mortgage-backed and asset-backed securities risk, odd lot pricing risk, portfolio turnover risk, prepayment and extension risk, regulatory risk, sector risk, securities lending risk, swap risk, underlying fund risk, U.S. government securities risk, valuation risk, variable or floating rate securities risk and volatility risk.

 

Investment Companies and ETFs Risks - When the Fund invests in other investment companies, including closed-end funds and ETFs, it will bear additional expenses based on its pro rata share of other investment company’s or ETF’s operating expenses, including management fees in addition to those paid by the Fund. The risk of owning an investment company or ETF generally reflects the risks of owning the underlying investments held by the investment company or ETF. The Fund will also incur brokerage costs when it purchases and sells closed-end funds or ETFs.

 

Underlying Fund Risk – The Fund’s investment performance and its ability to achieve its investment objective are directly related to the performance of the underlying funds in which it invests. There can be no assurance that the Fund’s investments in the underlying funds will achieve their respective investment objectives. The Fund is subject to the risks of the underlying funds in direct proportion to the allocation of its assets among the underlying funds.

27

Anfield Universal Fixed Income ETF
NOTES TO FINANCIAL STATEMENTS (Continued)
July 31, 2022

 

Collateralized Loan Obligations Risk – The Fund is subject to certain risks as a result of its investments in CLOs. The CLO’s performance is linked to the expertise of the CLO manager. One of the primary risks to investors of a CLO is the potential change in CLO manager, over which the Fund will have no control. The Fund may be adversely affected by new (or revised) laws or regulations that may be imposed by government regulators or self-regulatory organizations that supervise the financial markets. CLO debt securities are limited recourse obligations of their issuers. If income from the underlying loans is insufficient to make payments on the CLO debt, no other assets will be available for payment. In the event of an early redemption, holders of the CLO debt being redeemed will be repaid earlier than the stated maturity of the debt. The timing of redemptions may adversely affect the returns on CLO debt. The CLO manager may not find suitable assets in which to invest during the reinvestment period or to replace assets that the manager has determined are no longer suitable for investment. Additionally, there is a risk that the reinvestment period may terminate early if, for example, the CLO defaults on payments on the securities which it issues or if the CLO manager determines that it can no longer reinvest in underlying assets.

 

Convertible Securities Risk - The market value of a convertible security performs like that of a regular debt security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition, convertible securities are subject to the risk that the issuer will not be able to pay interest or dividends when due, and their market value may change based on changes in the issuer’s credit rating or the market’s perception of the issuer’s creditworthiness. Since it derives a portion of its value from the common stock into which it may be converted, a convertible security is also subject to the same types of market and issuer risks that apply to the underlying common stock.

 

Derivatives Risk - The derivative instruments in which the Fund may invest, including futures, options, credit default swaps, total return swaps, repurchase agreements and other similar instruments, may be more volatile than other instruments and may be subject to unanticipated market movements, which are potentially unlimited. The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments, and certain derivatives may create a risk of loss greater than the amount invested. These risks include (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. The risks associated with investments in derivatives also include leverage, liquidity, interest rate, market, credit and management risks. In addition, if a derivative is being used for hedging purposes there can be no assurance given that each derivative position will achieve a perfect correlation with the security or currency against which it is being hedged, or that a particular derivative position will be available when sought by the portfolio manager. Derivative prices are highly volatile and may fluctuate substantially during a short period of time. Such prices are influenced by numerous factors that affect the markets, including, but not limited to: changing supply and demand relationships; government programs and policies; and national and international political and economic events, changes in interest rates, and inflation and deflation.

 

ETF Structure Risks – The Fund is structured as an ETF and as a result is subject to special risks. Shares are not individually redeemable and may be redeemed by the Fund at NAV only in large blocks known as “Creation Units.” Trading in Shares on the Cboe BZX Exchange, Inc. (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. An active trading market for the Fund’s shares may not be developed or maintained. If the Fund’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 Fund’s shares. 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, particularly during times of market stress, with the result that investors may pay significantly more or significantly less for Fund shares than the Fund’s NAV, which is reflected in the bid and ask price for Fund shares or in the closing price. If a shareholder purchases shares at a time when the market price is at a premium to the NAV or sells shares at a time when the market price is at a discount to NAV, the shareholder may sustain losses if the shares are sold at a price that is less than the price paid by the shareholder for the shares. When all or a portion of an ETFs underlying securities trade in a market that is closed when the market for the Fund’s shares is open, there may be changes from the last quote of the closed market and the quote from the Fund’s domestic trading day, which could lead to differences between the market value of the Fund’s shares and the Fund’s NAV. In stressed market conditions, the market for the Fund’s shares may become less liquid in response to the deteriorating liquidity of the Fund’s portfolio. This adverse effect

28

Anfield Universal Fixed Income ETF
NOTES TO FINANCIAL STATEMENTS (Continued)
July 31, 2022

 

on the liquidity of the Fund’s shares may, in turn, lead to differences between the market value of the Fund’s shares and the Fund’s NAV.

 

Fixed Income Risk - Fixed income securities are subject to interest rate risk, call risk, prepayment and extension risk, credit risk, duration, and liquidity risk. In addition, current market conditions may pose heightened risks for fixed income securities. When the Fund invests in fixed income securities or derivatives, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities or derivatives owned by the Fund. Risks associated with rising interest rates are heightened given that interest rates in the U.S. currently remain near historic lows. Moreover, new regulations applicable to and changing business practices of financial intermediaries that make markets in fixed income securities have resulted in less market making activity for certain fixed income securities, which has reduced the liquidity and may increase the volatility for such fixed income securities. The fixed-income securities market can be susceptible to increases in volatility and decreases in liquidity. Liquidity may decline unpredictably in response to overall economic conditions or credit tightening. Duration risk arises when holding long duration and long maturity investments, which will magnify certain risks, including interest rate risk and credit risk. Longer-term securities may be more sensitive to interest rate changes.

 

Fluctuation of Net Asset Value Risk The NAV of the Fund’s shares will generally fluctuate with changes in the market value of the Fund’s holdings. The market prices of the shares will generally fluctuate in accordance with changes in NAV as well as the relative supply of and demand for the shares on the Exchange. The Fund’s Sub- Adviser cannot predict whether the shares will trade below, at or above their NAV. Price differences may be due, in large part, to the fact that supply and demand forces at work in the secondary trading market for the shares will be closely related to, but not identical to, the same forces influencing the prices of the Fund’s holdings trading individually or in the aggregate at any point in time. In addition, unlike conventional ETFs, the Fund is not an index fund. The Fund is actively managed and does not seek to replicate the performance of a specified Index. Actively managed ETFs have a limited trading history and, therefore, there can be no assurance as to whether and/or the extent to which the Shares will trade at premiums or discounts to NAV.

 

Market Risk Overall market risk may affect the value of individual instruments in which the Fund invests. The Fund is subject to the risk that the securities markets will move down, sometimes rapidly and unpredictably, based on overall economic conditions and other factors, which may negatively affect the Fund’s performance. Factors such as domestic and foreign (non-U.S.) economic growth and market conditions, real or perceived adverse economic or political conditions, inflation, changes in interest rate levels, lack of liquidity in the bond and other markets, volatility in the securities markets, adverse investor sentiment affect the securities markets and political events affect the securities markets. U.S. and foreign stock markets have experienced periods of substantial price volatility in the past and may do so again in the future. Securities markets also may experience long periods of decline in value. When the value of the Fund’s investments goes down, your investment in the Fund decreases in value and you could lose money.

 

Local, state, regional, national or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments and could result in decreases to the Fund’s net asset value. Political, geopolitical, natural and other events, including war, terrorism, trade disputes, government shutdowns, market closures, natural and environmental disasters, epidemics, pandemics and other public health crises and related events and governments’ reactions to such events have led, and in the future may lead, to economic uncertainty, decreased economic activity, increased market volatility and other disruptive effects on U.S. and global economies and markets. Such events may have significant adverse direct or indirect effects on the Fund and its investments. For example, a widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect Fund performance. A health crisis may exacerbate other pre -existing political, social and economic risks. In addition, the increasing interconnectedness of markets around the world may result in many markets being affected by events or conditions in a single country or region or events affecting a single or small number of issuers.

 

COVID-19 has resulted in travel restrictions, closed international borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, prolonged quarantines, cancellations, business and school closings, supply chain disruptions, and lower consumer demand, as well as general concern and uncertainty. The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen.

29

Anfield Universal Fixed Income ETF
NOTES TO FINANCIAL STATEMENTS (Continued)
July 31, 2022

 

Mortgage-Backed and Asset-Backed Securities Risk - The risk of investing in mortgage-backed and other asset-backed securities, includes prepayment risk, extension risk, interest rate risk, market risk and management risk. Mortgage-backed securities include caps and floors, inverse floaters, mortgage dollar rolls, private mortgage pass-through securities, resets and stripped mortgage securities. A systemic and persistent increase in the interest rate volatility may also negatively impact a number of the Fund’s mortgage-backed and asset-backed securities holdings. The Fund will invest less than 25% of its net assets in asset-backed securities or mortgage-backed securities that are below-investment grade.

 

LIBOR Risk - The Fund may invest in securities and other instruments whose interest payments are determined by references to the London Interbank Offered Rate (“LIBOR”). The United Kingdom Financial Conduct Authority, which regulates LIBOR, announced its intention to cease its active encouragement of banks to provide the quotations needed to sustain LIBOR after 2021. ICE Benchmark Administration Limited, the administrator of LIBOR, ceased publication of certain LIBOR settings on a representative basis at the end of 2021 and is expected to cease publication of the remaining LIBOR settings on a representative bases after June 30, 2023. The U.S. Federal Reserve has begun publishing Secured Overnight Financing Rate (SOFR), a broad measure of secured overnight U.S. Treasury repo rates, that is intended to replace U.S. dollar LIBOR.

 

The unavailability of LIBOR presents risks to the Fund, including the risk that any pricing or adjustments to the Fund’s investments resulting from a substitute or alternate reference rate may adversely affect the Fund’s performance and/or NAV. It remains uncertain how such changes would be implemented and the effects such changes would have on the Fund, including any negative effects on the Fund’s liquidity and valuation of the Fund’s investments, issuers of instruments in which the Fund invests and financial markets generally.

 

Volatility Risk – The Fund or an underlying fund may have investments that appreciate or decrease significantly in value over short periods of time. The value of an investment in the Fund’s portfolio may fluctuate due to factors that affect markets generally or that affect a particular industry or sector. The value of an investment in the Fund’s portfolio may also be more volatile than the market as a whole. This volatility may affect the Fund’s NAV per share, including by causing it to experience significant increases or declines in value over short periods of time. Events or financial circumstances affecting individual investments, industries or sectors may increase the volatility of the Fund.

 

7. DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL

 

The Statement of Assets and Liabilities represents cost for financial reporting purposes. As of the year ended July 31, 2022, aggregate cost for federal tax purposes is $126,877,590 for the Fund, and differs from market value by net unrealized appreciation (depreciation) which consisted of:

 

Gross unrealized appreciation:   $ 1,013,975  
Gross unrealized depreciation:     (10,261,455 )
Net unrealized depreciation:   $ (9,247,480 )

 

The tax character of Fund distributions paid for the fiscal years ended July 31, 2022 and July 31, 2021 was as follows:

 

    Fiscal Year Ended     Fiscal Year Ended  
    July 31, 2022     July 31, 2021  
Ordinary Income   $ 3,064,798     $ 1,724,438  
Long-Term Capital Gain            
Return of Capital            
    $ 3,064,798     $ 1,724,438  

30

Anfield Universal Fixed Income ETF
NOTES TO FINANCIAL STATEMENTS (Continued)
July 31, 2022

 

As of July 31, 2022, the components of accumulated earnings/ (deficit) on a tax basis were as follows:

 

Undistributed     Undistributed     Post October Loss     Capital Loss     Other     Unrealized     Total  
Ordinary     Long-Term     and     Carry     Book/Tax     Appreciation/     Accumulated  
Income     Gains     Late Year Loss     Forwards     Differences     (Depreciation)     Earnings/(Deficits)  
$ 230,942     $     $ (1,486,860 )   $ (1,957,426 )   $     $ (9,247,480 )   $ (12,460,824 )

 

The difference between book basis and tax basis undistributed net investment income/(loss), accumulated net realized gain/(loss), and unrealized appreciation/(depreciation) from investments is primarily attributable to tax deferral of losses on wash sales and adjustments for perpetual bonds.

 

Capital losses incurred after October 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Fund incurred and elected to defer such capital losses of $1,486,860.

 

At July 31, 2022, the Funds had capital loss carry forwards for federal income tax purposes available to offset future capital gains along with capital loss carryforwards utilized as follows:

 

Non-Expiring     Non-Expiring              
Short-Term     Long-Term     Total     CLCF Utilized  
$ 968,718     $ 988,708     $ 1,957,426     $  

 

Permanent book and tax differences, primarily attributable to tax adjustments for realized gain/(loss) on in-kind redemptions resulted in reclassification for the year ended July 31, 2022 as follows:

 

Paid In     Accumulated  
Capital     Earnings (Losses)  
$ (146,844 )   $ 146,844  

 

8. NEW ACCOUNTING PRONOUNCEMENT

 

In March 2020, FASB issued Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (’‘ASU 2020-04’’) . The amendments in ASU 2020-04 provide optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of LIBOR and other interbank-offered based reference rates as of the end of 2021. ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying this ASU.

 

9. RECENT REGULATORY UPDATES

 

In October 2020, the Securities and Exchange Commission (the “SEC”) adopted new regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). Rule 18f-4 imposes limits on the amount of derivatives a fund can enter into, eliminates the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treats derivatives as senior securities and requires funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.

 

10. SUBSEQUENT EVENTS

 

Subsequent events after the date of the Statement of Assets and Liabilities have been evaluated through the date the financial statements were issued. Management has determined that no events or transactions occurred requiring adjustment or disclosure in the financial statements.

31

Anfield Universal Fixed Income ETF
CHANGE IN INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Unaudited)
July 31, 2022

 

On April 5, 2022, the Audit Committee of the Board of Trustees of Two Roads Shared Trust (the “Trust” or “registrant”), selected and appointed and recommended Deloitte & Touche LLP (“Deloitte”) as the Fund’s independent registered public accounting firm for the fiscal year ending July 31, 2022, in replacement of RSM US LLP (“RSM”) which served previously as the independent registered public accounting firm for the Fund.

 

RSM reports on the Fund’s financial statements for either of the past two fiscal years, did not contain an adverse opinion or a disclaimer of opinion, nor were such reports qualified or modified as to uncertainty, audit scope or accounting principles.

 

During the fiscal year of the Fund ended July 31, 2021 and the subsequent interim period through April 5, 2022, (i) there were no disagreements between the Fund and RSM on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of RSM, would have caused it to make reference to the subject matter of the disagreement in its report on the financial statements for such period and (ii) there were no reportable events (as defined in Item 304(a)(1)(v) of Regulation S-K).

 

During the fiscal year of the Fund ended July 31, 2021, and during the subsequent interim period prior to appointing Deloitte, neither the registrant, nor anyone acting on its behalf, consulted with Deloitte on behalf of the Fund regarding the application of accounting principles to a specified transaction (either completed or proposed), the type of audit opinion that might be rendered on the Fund’s financial statements, or any matter that was either: (i) the subject of a “disagreement,” as defined in Item 304(a)(1)(iv) of Regulation S-K and the instructions thereto; or (ii) a “reportable event,” as described in Item 304(a)(1)(v) of Regulation S-K.

32

(DELOITTE LOGO)

Deloitte & Touche LLP

 

695 Town Center Drive
Suite 1000
Costa Mesa, CA 92626
USA

 

Tel:   714 436 7100
Fax:  714 436 7200
www.deloitte.com

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the shareholders and the Board of Trustees of Two Roads Shared Trust

 

Opinion on the Financial Statements and Financial Highlights

 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Anfield Universal Fixed Income ETF, one of the funds constituting the Two Roads Shared Trust (the “Fund”), as of July 31, 2022, and the related statements of operations, changes in net assets and the financial highlights for the year then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of July 31, 2022, and the results of its operations, changes in its net assets, and the financial highlights for the year then ended in conformity with accounting principles generally accepted in the United States of America. The statements of changes in net assets for the year ended July 31, 2021, and the financial highlights for each of the two years in the period ended July 31, 2021 and for the period from September 17, 2018 (commencement of operations) through July 31, 2019, were audited by other auditors whose report, dated September 29, 2021, expressed an unqualified opinion on those statements.

 

Basis for Opinion

 

These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

 

(-s- Deloitte & Touche LLP)

 

Costa Mesa, California

 

September 29, 2022

 

We have served as the auditor of one or more Regents Park Funds, LLC investment companies since 2022.

33

Anfield Universal Fixed Income ETF
ADDITIONAL INFORMATION (Unaudited)
July 31, 2022

 

Approval of Advisory Agreement

 

Regents Park Funds, LLC and Anfield Capital Management, LLC for the Anfield Universal Fixed Income ETF

 

At a meeting held on March 8-9, 2022 (the “Meeting”), the Board of Trustees (the “Board”) of Two Roads Shared Trust (the “Trust”), each of whom is not an “interested person” of the Trust (the “Independent Trustees” or the “Trustees”), as such term is defined under Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “1940 Act”), considered the renewal of the investment advisory agreement (the “Advisory Agreement”) between Regents Park Funds, LLC (“Regents Park” or the “Adviser”) and the Trust, on behalf of Anfield Dynamic Fixed Income ETF (the “Fund” or the “Anfield ETF”) and the renewal of the sub-advisory agreement (the “Sub-Advisory Agreement”) among Regents Park, Anfield Capital Management, LLC (“Anfield” or the “Sub-Adviser”) and the Trust, on behalf of the Anfield ETF.

 

In connection with the Board’s consideration of the Advisory Agreement and the Sub-Advisory Agreement, the Board received written materials in advance of the Meeting, which included information regarding: (i) the nature, extent, and quality of services to be provided to the Anfield ETF by the Adviser and the Sub-Adviser; (ii) a description of the Adviser’s and the Sub-Adviser’s investment management personnel; (iii) an overview of the Adviser’s and the Sub-Adviser’s respective operations and financial condition; (iv) a description of the Adviser’s and the Sub-Adviser’s brokerage practices (including any soft dollar arrangements); (v) a comparison of the Anfield ETF’s advisory fee and overall expenses with those of comparable mutual funds; (vi) the anticipated level of profitability from the Adviser’s and the Sub-Adviser’s fund-related operations; (vii) the Adviser’s and the Sub-Adviser’s compliance policies and procedures, including policies and procedures for personal securities transactions, business continuity and information security and (viii) information regarding the performance record of the Fund as compared to other mutual funds with similar investment strategies.

 

Throughout the process, including at the meeting, the Board had numerous opportunities to ask questions of and request additional materials from Regents Park and Anfield. During the Meeting, the Board was advised by, and met, in executive session with, the Board’s independent legal counsel, and received a memorandum from such independent counsel regarding their responsibilities under applicable law. The Board also noted that the evaluation process with respect to the Adviser and the Sub-Adviser was an ongoing one and that in this regard, the Board took into account discussions with management and information provided to the Board at prior meetings with respect to the services provided by the Adviser and the Sub- Adviser, including quarterly performance reports prepared by management. The Board noted that the information received and considered by the Board in connection with the Meeting and throughout the year was both written and oral.

 

Matters considered by the Board in connection with its approval of the Advisory Agreement and Sub-Advisory Agreement included, among others, the following:

 

Nature, Extent and Quality of Services . The Board reviewed materials provided by Regents Park (the “Adviser”) related to the Advisory Agreement with respect to the Fund, including: the

34

Anfield Universal Fixed Income ETF
ADDITIONAL INFORMATION (Unaudited) (Continued)
July 31, 2022

 

Advisory Agreement; a description of the manner in which investment decisions are made and executed; an overview of the personnel that perform services for the Fund and their background and experience; a review of the financial condition of Regents Park; information regarding risk management processes and liquidity management; the compliance policies and procedures of Regents Park, including its business continuity and cybersecurity policies and a code of ethics that contained provisions reasonably necessary to prevent Access Persons, as that term is defined in Rule 17j-1 under the 1940 Act, from engaging in conduct prohibited by Rule 17j-1(b); Regents Park’s compliance resources and practices; information regarding Regents Park’s compliance and regulatory history; and an independent report prepared by Broadridge analyzing the performance record, fees and expenses of the Fund as compared to those of a peer group of other mutual funds with similar investment strategies as selected by Broadridge. The Board also noted that on a regular basis it received and reviewed information from the Trust’s CCO regarding the Fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act, which included evaluating the regulatory compliance systems of the Adviser and procedures reasonably designed to ensure compliance with the federal securities laws. The Board also considered the Adviser’s policies and procedures relating to business continuity and cybersecurity, including the review and evaluation of the Trust’s CCO of these policies and procedures.

 

The Board took into account that both Regents Park and Anfield are affiliates under common control and share many, but not all, key personnel with each other, and considered the expansion in staffing of the Adviser in key areas. The Board considered the differing functions of each firm with respect to managing either operations and/or portfolio management for the Fund, any potential conflicts of interest for the Fund that the arrangement served, and the Adviser’s mitigation of such conflicts. The Board noted no significant disruption or impact to services to the Adviser as a result of the COVID -19 pandemic and that the Adviser had continued to provide the same level, quality and extent of services to the Fund. The Board also considered the significant risks assumed by the Adviser in connection with the services provided to the Fund, including entrepreneurial risk and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to the Fund.

 

The Board considered Regents Park’s role as the investment adviser to the Anfield ETF and Regents Park’s retention of a sub-adviser to manage day-to–day investment decisions of the Fund. The Board considered the oversight and supervisory role performed by Regents Park for the Fund, and noted that Regents Park generally provided management and operated a Sub-Adviser Oversight Committee to accomplish services to the Fund, including overall management of the Fund’s business and expenses; design, including competitor analysis and fee determination; and compliance and operational support. The Board considered that Regents Park received daily reports from the Sub-Adviser in connection with its oversight of the Sub-Adviser. In addition, the Board considered its familiarity with Regents Park’s personnel obtained from the Board’s oversight of the Fund and of other funds in the Trust advised by Regents Park, as well as the affiliation between Regents Park and Anfield and any potential conflicts of interest with the Sub-Adviser.

 

In considering the nature, extent, and quality of the services provided by Regents Park, the Board also took into account its knowledge, acquired through discussions and reports during the

35

Anfield Universal Fixed Income ETF
ADDITIONAL INFORMATION (Unaudited) (Continued)
July 31, 2022

 

preceding year and in past years, of Regents Park’s management and the quality of the performance of its duties. The Board concluded that the management of Regents Park had the skills, experience and sophistication necessary to effectively oversee the Sub-Adviser and concluded that Regents Park had sufficient quality and depth of personnel, resources, and compliance policies and procedures for performing its duties and that the nature, overall quality and extent of the services provided by Regents Park were satisfactory and reliable.

 

The Board reviewed materials provided by Anfield (the “Sub-Adviser”) related to the Sub-Advisory Agreement with the Trust with respect to the Anfield ETF, including: the Sub-Advisory Agreement; a description of the manner in which investment decisions are made and executed; an overview of the personnel that perform services for the Anfield ETF and their background and experience; a summary of the financial condition of the Sub-Adviser; a written report containing the Sub-Adviser’s performance commentaries for the prior quarterly period; the Sub-Adviser’s compliance policies and procedures, including its business continuity and cybersecurity policies, a code of ethics containing provisions reasonably necessary to prevent Access Persons, as that term is defined in Rule 17j-1 under the 1940 Act, from engaging in conduct prohibited by Rule 17j-1(b); information regarding risk management processes and liquidity management; an annual review of the operation of the Sub-Adviser’s compliance program; information regarding the Sub-Adviser’s compliance and regulatory history; and an independent report prepared by Broadridge, an independent third party data provider, analyzing the performance record of the Anfield ETF and the fees and expenses of the Anfield ETF as compared to other mutual funds with similar investment strategies, as applicable.

 

In considering the nature, extent, and quality of the services provided by Anfield in its capacity as a sub-adviser, the Board also took into account its knowledge of Anfield’s management and the quality of the performance of its duties as adviser and as a sub-adviser, acquired through discussions and reports during the preceding year and in past years. The Board reviewed the background information on Anfield’s key personnel, taking into consideration their education, financial industry experience, and fixed income experience. The Board concluded that Anfield had sufficient quality and depth of personnel, resources, investment methodologies and compliance policies and procedures to perform its duties under the Sub-Advisory Agreement with respect to the Anfield ETF and that the nature, overall quality and extent of the services provided by Anfield were satisfactory and reliable.

 

Performance . In considering the Fund’s performance, the Board noted that it reviews information about the Fund’s performance results at its regularly scheduled meetings. Among other data, the Board considered the Fund’s performance as compared to a broad-based index and against a group of peer funds provided by Broadridge, an independent third-party data provider (the “Peer Group”). The Board noted that while it found the data provided by the independent third-party generally useful, it recognized its limitations, including in particular that data may vary depending on the selected end date and that the results of the performance comparisons may vary depending on the selection of the Peer Group. The Board also noted differences in the investment strategies of the Fund relative to its Peer Group.

36

Anfield Universal Fixed Income ETF
ADDITIONAL INFORMATION (Unaudited) (Continued)
July 31, 2022

 

The Board also took into account management’s discussion of the performance of the Anfield ETF, including the quarterly written reports containing the Adviser’s and Sub-Adviser’s respective performance commentaries. The Board also noted that each of the Adviser and Sub-Adviser was actively monitoring the performance of the Fund.

 

With respect to the Anfield Universal Fixed Income ETF, the Board considered that Anfield is responsible for the day -to-day management of the Fund’s investment portfolio. Among other data, the Board considered the Fund’s performance for the one-year, three-year, and since inception periods ended January 31, 2022, as compared with the performance of the funds in its Peer Group and Morningstar category (Multisector Bond) and the benchmark index. The Board considered that the Fund has underperformed its benchmark index and the median of its Peer Group and Morningstar category for the one-year, three-year, and since-inception periods. The Board took into account the Adviser’s discussion of the Fund’s performance, including the factors that had contributed to the Fund’s underperformance and certain allocations that contributed to underperformance. The Board concluded that the Fund’s overall performance was consistent with the goals and strategies of the prospectus and that underperformance was being appropriately monitored and/or addressed.

 

Fees and Expenses . Regarding the costs of the services provided by the Adviser and Sub-Adviser, the Board considered, among other expense data, a comparison prepared by Broadridge of the Fund’s advisory fee and operating expenses compared to the advisory fee and expenses of the funds in its Peer Group and Morningstar category. The Board noted that while it found the data provided by the independent third-party generally useful, it recognized its limitations, including potential differences in the investment strategies of the Fund relative to its Peer Group, as well as the level, quality and nature of the services provided by the Adviser and Sub-Adviser with respect to the Fund.

 

The Board noted with respect to the Anfield Universal Fixed Income ETF that Regents Park’s advisory fee was higher than the median of the Peer Group and Morningstar category, but not the highest among the funds within the Peer Group, while remaining within the range of its Peers. The Board also noted that the Fund’s net expense ratio was above the median of its Peer Group and Morningstar category. The Board took into account that the Adviser had agreed to reimburse expenses to limit net annual operating expenses to 1.50% of the Fund’s average net assets (exclusive of any taxes, interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, indirect expenses, expenses of other investment companies in which the Fund may invest, or extraordinary expenses such as litigation).

 

With respect to the sub-advisory fees relating to the Fund, the Board considered that the Fund pays an advisory fee to the Adviser and that, in turn, the Adviser pays a portion of its advisory fee to the Sub-Adviser. The Board also took into account the amount of the advisory fee to be retained by Regents Park and the services to be provided with respect to the Fund by the Adviser and the Sub-Adviser. In considering the level of the Fund’s advisory and sub-advisory fee, the Board also took into account the fees charged by the Adviser and Sub-Adviser to other accounts managed with a similar investment strategy, if any, noting that differences were attributable to the differences in the management of these different kinds of accounts. The Board also noted any

37

Anfield Universal Fixed Income ETF
ADDITIONAL INFORMATION (Unaudited) (Continued)
July 31, 2022

 

reimbursement of Fund expenses by the Sub-Adviser.

 

Based on the factors above, the Board concluded that the advisory fee and sub-advisory fee of the Fund was not unreasonable.

 

Profitability . The Board considered the profitability of each of Regents Park and Anfield and whether these profits were reasonable in light of the services provided to the Fund. The Board reviewed profitability analyses prepared by Regents Park and Anfield based on the Fund’s asset levels and considered the total profits of each of the Adviser and the Sub-Adviser, respectively, from its relationship with the Fund. The Board concluded that each of Regents Park and Anfield’s profitability from its respective relationship with the Fund, after taking into account a reasonable allocation of costs, was not excessive.

 

Economies of Scale . The Board considered whether any of Regents Park or Anfield would realize economies of scale with respect to the advisory or sub- advisory services provided to the Fund. The Board considered the profitability analyses included in the Board Materials and noted that expenses of managing the Fund as a percentage of assets under management were expected to decrease as the Fund’s assets continue to grow. The Board noted that at current asset levels, economies of scale were not a relevant consideration and that it would revisit whether economies of scale exist in the future once the Fund had achieved sufficient size.

 

Other Benefits . The Board also considered the character and amount of other direct and incidental benefits to be received by each of Regents Park and Anfield from its respective association with the Fund. The Board noted that neither of Regents Park or Anfield believed it would receive any direct, indirect or ancillary material “fall-out” benefits from its relationship with the Fund, other than certain reputational benefits which may result from these relationships. The Board concluded that such benefits are reasonable.

 

Conclusion . The Board, having requested and received such information from each of Regents Park and Anfield as it believed reasonably necessary to evaluate the terms of the Advisory Agreement and Sub-Advisory Agreement and having been advised by independent counsel that it had appropriately considered and weighed all relevant factors, determined that approval of Advisory Agreement and Sub-Advisory Agreement with respect to the Fund for an additional one-year term was in the best interests of the Fund and its shareholders.

 

In considering the renewal of the Advisory Agreement and Sub-Advisory Agreement, the Board considered a variety of factors, including those discussed above, and also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry). The Board did not identify any one factor as determinative, and each Independent Trustee may have weighed each factor differently. The Board’s conclusions may be based in part on its consideration of the advisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.

38

Anfield Universal Fixed Income ETF
EXPENSE EXAMPLES (Unaudited)
July 31, 2022

 

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs for purchasing and selling shares; and (2) ongoing costs, including management fees and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

 

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from February 1, 2022 to July 31, 2022 (the ’‘period’’).

 

Actual Expenses

 

The first line of 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 entitled ’‘Expenses Paid During the Period’’ to estimate the expenses you paid on your account during this period.

 

Hypothetical Example for Comparison Purposes

 

The second line of 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 Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions on purchases or sales of Fund shares. Therefore, the second line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

  Beginning Ending Expenses Paid Expense Ratio
  Account Value Account Value During Period During the Period
Actual 2/1/22 7/31/22 2/1/22-7/31/22* 2/1/22-7/31/22
  $1,000.00 $956.70 $4.75 0.98%
         
  Beginning Ending Expenses Paid Expense Ratio
Hypothetical Account Value Account Value During Period During the Period
(5% return before expenses) 2/1/22 7/31/22 2/1/22-7/31/22* 2/1/22-7/31/22
  $1,000.00 $1,019.93 $4.91 0.98%

 

* Expenses are equal to the average account value over the period, multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the period (181) divided by the number of days in the fiscal year (365).

39

Anfield Universal Fixed Income ETF
ADDITIONAL INFORMATION (Unaudited)
July 31, 2022

 

LIQUIDITY RISK MANAGEMENT PROGRAM

 

The Fund has adopted and implemented a written liquidity risk management program as required by Rule 22e-4 (the “Liquidity Rule”) under the 1940 Act. The program is reasonably designed to assess and manage the Fund’s liquidity risk, taking into consideration, among other factors, the Fund’s investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed conditions; its short and long-term cash flow projections; and its cash holdings and access to other funding sources.

 

During the year ended July 31, 2022, the Trust’s Liquidity Risk Management Program Committee (the “Committee”) reviewed the Fund’s investments and determined that the Fund held adequate levels of cash and highly liquid investments to meet shareholder redemption activities in accordance with applicable requirements. Accordingly, the Committee concluded that (i) the Fund’s liquidity risk management program is reasonably designed to prevent violations of the Liquidity Rule and (ii) the Fund’s liquidity risk management program has been effectively implemented.

40

Anfield Universal Fixed Income ETF
SUPPLEMENTAL INFORMATION (Unaudited)
July 31, 2022

 

Trustees and Officers. The Trustees and officers of the Trust, together with information as to their principal business occupations during the past five years and other information, are shown below. Unless otherwise noted, the address of each Trustee and Officer is 225 Pictoria Drive, Suite 450, Cincinnati, OH 45246.

 

Independent Trustees *

 

Name, Address,
Year of Birth
Position(s)
Held with
Registrant
Term and
Length
Served
Principal
Occupation(s) During
Past 5 Years
Number of
Portfolios
Overseen In
The Fund
Complex**
Other Directorships
Held During Past 5
Years
Mark Garbin
Year of Birth: 1951
Trustee Indefinite, Since 2012 Managing Principal, Coherent Capital Management LLC (since 2008), Independent Director, OCHEE LP (2021-present) 8 Northern Lights Fund Trust (since 2013); Northern Lights Variable Trust (since 2013); Forethought Variable Insurance Trust (since 2013); OHA Mortgage Strategies Fund (offshore), Ltd. (2014 - 2017); iCapital KKR Private Markets Fund (since 2014); Carlyle Tactical Private Credit Fund (since March 2018) ; and OHA CLO Enhanced Equity II Genpar LLP (since 2021)
Mark D. Gersten
Year of Birth: 1950
Chairman, Trustee Indefinite, Since 2012 Independent Consultant (since 2012); Senior Vice President – Global Fund Administration Mutual Funds & Alternative Funds, AllianceBernstein LP (1985 – 2011) 8 Northern Lights Fund Trust (since 2013); Northern Lights Variable Trust (since 2013); iCapital KKR Private Markets Fund (since 2014); previously, Ramius Archview Credit and Distressed Fund (2015-2017); and Schroder Global Series Trust (2012 to 2017)
Neil M. Kaufman
Year of Birth: 1960
Trustee, Audit Committee Chairman Indefinite, Since 2012 Managing Member, Kaufman McGowan PLLC (legal services)(Since 2016) 8 iCapital KKR Private Markets Fund (since 2014)
Anita K. Krug
Year of Birth: 1969
Trustee Indefinite, Since 2012 Dean and Professor (since 2019) of Chicago-Kent College of Law, Illinois Institute of Technology; Interim Vice Chancellor for Academic Affairs (2018-2019) University of Washington Bothell; Interim Dean (2017-2018), Professor (2016-2019), Associate Professor (2014-2016); and Assistant Professor (2010-2014), University of Washington School of Law 8 iCapital KKR Private Markets Fund (since 2014); Centerstone Investors Trust (2016-2021)

 

* Information is as of July 31, 2022.

** As of July 31, 2022, the Trust was comprised of 25 active portfolios managed by seven unaffiliated investment advisers and two affiliated investment advisers. The term “Fund Complex” applies only to those funds that (i) are advised by a common investment adviser or by an investment adviser that is an affiliated person of the investment adviser of any of the other funds in the Trust or (ii) hold themselves out to investors as related companies for purposes of investment and investor services. The Fund does not hold itself out as related to any other series within the Trust except for Anfield Diversified Alternatives ETF, Anfield Dynamic Fixed Income ETF, Anfield U.S. Equity Sector Rotation ETF, APEX Healthcare ETF and Regents Park Hedged Market Strategy ETF, each of which is advised by Regents and sub-advised by the Fund’s Sub-Adviser; Anfield Universal Fixed Income Fund, which is advised by the Fund’s Sub-Adviser; and Affinity World Leaders Equity ETF, which is advised by Regents.

 

07/31/22 – Two Roads v2

41

Anfield Universal Fixed Income ETF
SUPPLEMENTAL INFORMATION (Unaudited)(Continued)
July 31, 2022

 

Officers of the Trust*

Name, Address,
Year of Birth
Position(s)
Held with
Registrant
Principal Occupation(s) During
Past 5 Years

Number of
Portfolios

Overseen In
The Fund
Complex**

Other
Directorships
Held During Past
5 Years
James Colantino
80 Arkay Drive
Hauppauge, NY 11788
Year of Birth: 1969
President Since Feb. 2017 Treasurer (2012 to 2017) Senior Vice President (2012-present); Vice President (2004 to 2012); Ultimus Fund Solutions LLC N/A N/A
Laura Szalyga
80 Arkay Drive
Hauppauge, NY 11788
Year of Birth: 1978
Treasurer Since Feb. 2017 Vice President, Ultimus Fund Solutions LLC (since 2015); Assistant Vice President, Ultimus Fund Solutions LLC (2011-2014) N/A N/A
Timothy Burdick
Year of Birth: 1986
Vice President Since Aug. 2022 Secretary Since Aug. 2022 Vice President and Managing Counsel, Ultimus Fund Solutions, LLC (2022 – present); Assistant Vice President and Counsel, Ultimus Fund Solutions, LLC (2019 – 2022); Senior Program Compliance Manager, CJ Affiliate (2016 –2019). N/A N/A
William B. Kimme
Year of Birth: 1962
Chief Compliance Officer Since Inception Senior Compliance Officer, Northern Lights Compliance Services, LLC (September 2011 - present) N/A N/A

 

* Information is as of July 31, 2022.

** As of July 31, 2022, the Trust was comprised of 25 active portfolios managed by seven unaffiliated investment advisers and two affiliated investment advisers. The term “Fund Complex” applies only to those funds that (i) are advised by a common investment adviser or by an investment adviser that is an affiliated person of the investment adviser of any of the other funds in the Trust or (ii) hold themselves out to investors as related companies for purposes of investment and investor services. The Fund does not hold itself out as related to any other series within the Trust except for Anfield Diversified Alternatives ETF, Anfield Dynamic Fixed Income ETF, Anfield U.S. Equity Sector Rotation ETF, APEX Healthcare ETF and Regents Park Hedged Market Strategy ETF, each of which are advised by Regents and sub-advised by the Fund’s Sub-Adviser; Anfield Universal Fixed Income Fund, which is advised by the Fund’s Sub-Adviser; and Affinity World Leaders Equity ETF, which is advised by Regents.

 

The Fund’s Statement of Additional Information (“SAI”) includes additional information about the Trustees and is available free of charge, upon request, by calling toll-free at 1-866-866-4848.

 

07/31/22 – Two Roads v2

42

PRIVACY NOTICE

 

FACTS WHAT DOES TWO ROADS SHARED TRUST 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 DEPENDS ON THE PRODUCT OR SERVICE THAT YOU HAVE WITH US. THIS INFORMATION CAN INCLUDE:
   
  ●      Social Security number and income
   
  ●      Account transactions and transaction history
   
  ●      Investment experience and purchase history
   
  When you are no longer our customer, we continue to share your information as described in this notice.
   
How? All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reason Two Roads Shared Trust chooses to share and whether you can limit this sharing.

 

Reasons we can share your personal information Does Two Roads
Shared Trust 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 – NO We do not share
to offer our products and services to you    
For joint marketing with other financial companies NO We do not share
     
     
For our affiliates’ everyday business purposes – NO We do not share
information about your transactions and experiences    
     
For our affiliates’ everyday business purposes – NO We do not share
information about your creditworthiness    
For our affiliates to market to you NO We do not share
     
For nonaffiliates to market to you NO We do not share
     
Questions? Call 1-631-490-4300

43

What we do

How does Two Roads Shared Trust
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.

   
  Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information.
How does Two Roads Shared Trust We collect your personal information, for example, when you
collect my personal information?  
  ●      open an account or give us contact information
   
  ●      provide account information or give us your income information
   
  ●      make deposits or withdrawals from your account
   
  We also collect your personal information from other companies.
Why can’t I limit all sharing? Federal law gives you the right to limit only
   
  ●      sharing for affiliates’ everyday business purposes – information about your creditworthiness
   
  ●      affiliates from using your information to market to you
   
  ●      sharing for nonaffiliates 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.
   
  ●       Two Roads Shared Trust has no affiliates.
Nonaffiliates Companies not related by common ownership or control. They can be financial and nonfinancial companies.
   
  ●       Two Roads Shared Trust does not share with nonaffiliates so they can market to you.
Joint marketing A formal agreement between nonaffiliates financial companies that together market financial products or services to you.
   
  ●       Two Roads Shared Trust does not jointly market.

44

Proxy Voting Policy

 

Information regarding how the Fund votes proxies relating to portfolio securities for the twelve month period ended June 30 as well as a description of the policies and procedures that the Fund used to determine how to vote proxies is available without charge, upon request, by calling 1-866-866-4848 or by referring to the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov .

 

Portfolio Holdings

 

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, within sixty days after the end of the period. Form N-PORT reports are available on the SEC’s website at http://www.sec.gov . The information on Form N-PORT is available without charge, upon request, by calling 1-866-866-4848.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adviser
Regents Park Funds, LLC
4041 MacArthur Blvd., Suite 155
Newport Beach, CA 92660
 
Administrator
Ultimus Fund Solutions, LLC
225 Pictoria Drive, Suite 450
Cincinnati, OH 45246

 

 

This report and the financial statements contained herein are submitted for the general information of shareholders and are not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Nothing contained herein may be considered an offer of sale or solicitation of an offer to buy shares of the Fund. Such offering is made only by prospectus, which contains information about the Fund’s investment objective, risks, fees and expenses. Investors are reminded to read the prospectus carefully before investing in the Fund.

 

 

 

AUE-AR22