The accompanying notes are an integral part of
these financial statements.
NOTE 1 - ORGANIZATION
The VegTech Plant-based Innovation & Climate
ETF (the “Fund”) is a non-diversified series of Advisors Series Trust (the
“Trust”), which is registered under the Investment Company Act of 1940 (the
“1940 Act”), as amended, as an open-end management investment company. The
Fund follows the investment company accounting and reporting guidance of the
Financial Accounting Standards Board (“FASB”) Accounting Standard Codification
Topic 946 “Financial Services – Investment Companies." The Fund began operations
on December 28, 2021. The investment objective of the Fund is to achieve
long-term capital growth.
Shares of the Fund are listed and traded on
the NYSE Arca, Inc. (“the “Exchange”). Market prices for the shares may be
different from their net asset value (“NAV”). The Fund issues and redeems shares
on a continuous basis at NAV only in large blocks of shares, called “Creation
Units,” which generally consist of 15,000 shares. Creation Units are issued and
redeemed principally in-kind for securities included in a specified universe.
Once created, shares generally trade in the secondary market at market prices
that change throughout the day in amounts less than a Creation Unit. Except when
aggregated in Creation Units, shares are not redeemable securities of the Fund.
Shares of the Fund may only be purchased directly from or redeemed directly to
the Fund by certain financial institutions (“Authorized Participants”). An
Authorized Participant is either (i) a broker-dealer or other participant in the
clearing process through the Continuous Net Settlement System of the National
Securities Clearing Corporation or (ii) a DTC participant and, in each case,
must have executed a Participant Agreement with Quasar Distributors, LLC (the
“Distributor”). Most retail investors do not qualify as Authorized Participants
or have the resources to buy and sell whole Creation Units. Therefore, most
retail investors may purchase shares in the secondary market with the assistance
of a broker and are subject to customary brokerage commissions or fees.
The Fund currently offers one class of shares,
which has no front-end sales load, no deferred sales charge, and no redemption
fee. A purchase (i.e., creation) transaction fee is imposed for the transfer and
other transaction costs associated with the purchase of Creation Units. The Fund
charges $500 for the standard fixed creation fee, payable to the Custodian. In
addition, a variable fee may be charged on cash purchases, non-standard orders,
or partial cash purchases of Creation Units of up to a maximum of 2% as a
percentage of the total value of the Creation Units subject to the transaction.
Variable fees received by the Fund are displayed in the Capital Share
Transactions section of the Statement of Changes in Net Assets. The Fund may
issue an unlimited number of shares of beneficial interest, with $0.01 par value
per share.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary
of significant accounting policies consistently followed by the Fund. These
policies are in conformity with accounting principles generally accepted in the
United States of America (GAAP).
Federal Income Taxes : It is the Fund’s policy to comply with the
requirements of Subchapter M of the Internal Revenue Code applicable to
regulated investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no federal income or excise tax
provision is required. The Fund plans to file U.S. Federal and state tax
returns, as necessary.
The Fund recognizes the tax
benefits of uncertain tax positions only when the position is more likely than
not to be sustained. Income and capital gain distributions are determined in
accordance with federal income tax regulations, which may differ from U.S. GAAP.
The Fund recognizes interest and penalties, if any, related to unrecognized tax
benefits on uncertain tax positions as income tax expenses in the Statement of
Operations. During the current fiscal period, the Fund did not incur any
interest or penalties.
Security Transactions and
Investment Income : Investment
securities transactions are accounted for on the trade date. Gains and losses
realized on sales of securities are determined on a specific identification
basis. Dividend income and expense are recorded on the ex-dividend date.
Withholding taxes on foreign dividends, if any, have been
VegTech Plant-Based Innovation & Climate ETF
NOTES TO FINANCIAL STATEMENTS at October 31, 2022, Continued
provided for in accordance with the Fund’s
understanding of the applicable tax rules and regulations. Interest income and
is recorded on an accrual basis.
Common expenses of the Trust
are typically allocated among the funds in the Trust based on a fund’s
respective net assets, or by other equitable means.
Dividend Distributions:
Distributions to
shareholders are recorded on the ex-dividend date and are determined in
accordance with federal income tax regulations, which may differ from GAAP. The
Fund distributes all or substantially all of its net investment income and net
realized gains, if any, annually.
Currency Translation: Assets and liabilities, including
investment securities, denominated in currencies other than U.S. dollars are
translated into U.S. dollars at the exchange rates supplied by one or more
pricing vendors on the valuation date. Purchases and sales of investment
securities and income and expenses are translated into U.S. dollars at the
exchange rates on the dates of such transactions. The effects of changes in
exchange rates on investment securities are included with the net realized gain
or loss and net unrealized appreciation or depreciation on investments in the
Fund’s Statement of Operations. The realized gain or loss and unrealized
appreciation or depreciation resulting from all other transactions denominated
in currencies other than U.S. dollars are disclosed separately.
Reclassification of Capital
Accounts: U.S. GAAP
requires that certain components of net assets relating to permanent differences
be reclassified between financial and tax reporting. These reclassifications
have no effect on net assets or NAV per share. For the period ended October 31,
2022, there were no reclassifications between paid-in
capital and distributable earnings.
Use of Estimates: The
preparation of financial statements in conformity with the U.S GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of increases and decreases in net assets during the reporting period.
Actual results could differ from those estimates.
Guarantees and Indemnifications:
In the normal course of
business, the Fund enters into contracts with service providers that contain
general indemnification clauses. The Fund’s maximum exposure under these
arrangements is unknown as this would involve future claims that may be against
the Fund that have not yet occurred. However, based on experience, the Fund
expects the risk of loss to be remote.
REITs: The Fund is
able to make certain investments in real estate investment trusts (“REITs”)
which pay dividends to their shareholders based upon available funds from
operations. It is quite common for these dividends to exceed the REITs’
taxable earnings and profits resulting in the excess portion being designated as
a return of capital. The Fund intends to include the gross dividends from
such REITs in its annual distributions to its shareholders and, accordingly, a
portion of the Fund’s distributions may also be designated as a return of
capital.
Events Subsequent to the Fiscal
Period End: In preparing
the financial statements as of October 31, 2022, management considered the
impact of subsequent events for potential recognition or disclosure in the
financial statements. There were no events or transactions that occurred during
the period subsequent to the end of the current fiscal period that materially
impacted the amounts or disclosures in the Fund’s financial statements.
NOTE 3 – SECURITIES VALUATION
Fair Valuation Measurement:
The FASB established a
framework for measuring fair value in accordance with GAAP. Under FASB ASC Topic
820, Fair Value Measurement, various inputs are used in determining the value of
each Fund’s investments. The inputs or methodology used for valuing securities
are not necessarily an indication of the risk associated with investing in those
securities. The three levels of inputs of the fair value
VegTech Plant-Based Innovation & Climate ETF
NOTES TO FINANCIAL STATEMENTS at October 31, 2022, Continued
hierarchy are defined as follows:
Level 1 — Unadjusted quoted prices in active markets for identical assets
or liabilities.
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
securities, 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.
A financial instrument’s level within the fair
value hierarchy is based on the lowest level of any input that is significant to
the fair value measurement.
Investment Valuation: The
Fund calculates its NAV each day the NYSE is open for trading as of the close of
regular trading on the NYSE, normally 4:00 p.m. Eastern time.
Generally, the Fund’s equity investments are valued each day at the last quoted
sales price on each investment’s primary exchange. Investments traded or dealt
in one or more exchanges (whether domestic or foreign) for which market
quotations are readily available and not subject to restrictions against resale
shall be valued at the last quoted sales price on the primary exchange or, in
the absence of a sale on the primary exchange, at the last bid on the primary
exchange. Investments primarily traded in the National Association of Securities
Dealers’ Automated Quotation System (“NASDAQ”) National Market System for which
market quotations are readily available shall be valued using the NASDAQ
Official Closing Price. Equity securities are generally categorized in Level 1
or Level 2 of the fair value hierarchy depending on inputs used and market
activity levels for specific securities.
Investments in other open-end investment
companies, including money market funds, are valued at the investment company’s
net asset value per share, with the exception of exchange-traded open-end
investment companies, which are priced as equity securities described above.
Investment companies will be classified in level 1 of the fair value hierarchy.
Prior to the effectiveness of Rule 2a-5, on September 8, 2022, the Board
of Trustees (“Board”) had delegated day-to-day valuation issues to a Valuation
Committee of the Trust which was comprised of representatives from the Funds’
administrator, U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank
Global Fund Services (“Fund Services”). The function of the Valuation
Committee was to value securities where current and reliable market quotations
were not readily available, or the closing price did not represent fair value by
following procedures approved by the Board. These procedures considered
many factors, including the type of security, size of holding, trading volume
and news events. All actions taken by the Valuation Committee were
subsequently reviewed and ratified by the Board. The Valuation Committee
served through September 7, 2022. Effective September 8, 2022, the Board of
Trustees approved VegTech LLC, (the “Adviser”), as the Fund’s valuation designee
under Rule 2a-5.
Depending on the relative significance of the
valuation inputs, fair valued securities may be classified in either level 2 or
level 3 of the fair value hierarchy.
Foreign exchanges typically close before the
time at which Fund share prices are calculated and may be closed altogether on
some days when shares of the Fund are traded. Significant events affecting a
foreign security may include, but are not limited to: corporate actions,
earnings announcements, litigation or other events impacting a single issuer;
governmental action that affects securities in one sector or country; natural
disasters or armed conflicts affecting a country or region; or significant
domestic or foreign market fluctuations. Fair valuations and valuations of
investments that are not actively trading involve judgment and may differ
materially from valuations that would have been used had greater market activity
occurred.
VegTech Plant-Based Innovation & Climate ETF
NOTES TO FINANCIAL STATEMENTS at October 31, 2022, Continued
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 following is a summary of the inputs used
to value the Fund’s investments as of October 31, 2022:
| |
|
|
|
|
|
|
|
|
|
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
Common
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Materials |
|
$ |
1,204,431 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1,204,431 |
|
|
Consumer Cyclical |
|
|
427,170 |
|
|
|
- |
|
|
|
- |
|
|
|
427,170 |
|
|
Consumer
Non-Cyclical |
|
|
2,904,622 |
|
|
|
- |
|
|
|
- |
|
|
|
2,904,622 |
|
|
Financial
|
|
|
35,467 |
|
|
|
- |
|
|
|
- |
|
|
|
35,467 |
|
|
Industrial
|
|
|
24,046 |
|
|
|
- |
|
|
|
- |
|
|
|
24,046 |
|
|
Total
Common Stocks |
|
|
4,595,736 |
|
|
|
- |
|
|
|
- |
|
|
|
4,595,736 |
|
|
Money
Market Fund |
|
|
73,275 |
|
|
|
- |
|
|
|
- |
|
|
|
73,275 |
|
|
Total
Investments in
Securities
|
|
$ |
4,669,011 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
4,669,011 |
|
Refer to the Fund’s schedule of investments for a
detailed break-out of securities by industry classification.
In December 2020, the SEC adopted a new rule
providing a framework for fund valuation practices (“Rule 2a-5”). Rule 2a-5
establishes requirements for determining fair value in good faith for purposes
of the 1940 Act. Rule 2a-5 permits fund boards to designate certain parties to
perform fair value determinations, subject to board oversight and certain other
conditions. Rule 2a-5 also defines when market quotations are “readily
available” for purposes of the 1940 Act and the threshold for determining
whether a fund must fair value a security. In connection with Rule 2a-5, the SEC
also adopted related recordkeeping requirements and rescinded previously issued
guidance, including with respect to the role of a board in determining fair
value and the accounting and auditing of fund investments. The Fund is in
compliance with Rule 2a-5, which had a compliance date of September 8, 2022.
The global outbreak of COVID-19 (commonly
referred to as “coronavirus”) has disrupted economic markets and the prolonged
economic impact is uncertain. Although vaccines for COVID-19 are becoming more
widely available, the ultimate economic fallout from the pandemic, amid the
spread of COVID-19 variants, and the long-term impact on economies, markets,
industries and individual companies are not known. The operational and financial
performance of individual companies and the market in general depends on future
developments, including the duration and spread of any future outbreaks and the
pace of recovery which may vary from market to market, and such uncertainty may
in turn adversely affect the value and liquidity of the Fund’s investments,
impair the Fund’s ability to satisfy redemption requests, and negatively impact
the Fund’s performance.
NOTE 4 - INVESTMENT ADVISORY FEE AND OTHER
TRANSACTIONS WITH AFFILIATES
VegTech LLC serves as the investment adviser to
the Fund. Pursuant to an Investment Advisory Agreement (“Advisory Agreement”)
between the Trust, on behalf of the Fund, and the Adviser, the Adviser provides
investment advice to the Fund and oversees the day-to-day operations of the
Fund, subject to the oversight of the Board. Under the Advisory Agreement, the
Adviser has agreed to pay all expenses of the Fund, except for: the fee paid to
the Adviser pursuant to the Advisory Agreement, taxes and governmental fees,
brokerage fees, commissions and other transaction expenses, certain foreign
custodial fees and expenses, costs of borrowing money, including interest
expenses, and extraordinary expenses (such as litigation and indemnification
expenses and shareholder proxy). For the services it provides to the Fund, the
Fund pays the Adviser a unified management fee, which is calculated daily and
paid monthly, at an annual rate of 0.75% of the Fund’s average daily net assets.
VegTech Plant-Based Innovation & Climate ETF
NOTES TO FINANCIAL STATEMENTS at October 31, 2022, Continued
The Adviser has overall responsibility for
overseeing the investment of the Fund’s assets, managing the Fund’s business
affairs and providing certain clerical, bookkeeping and other administrative
services for the Trust. Penserra Capital Management, LLC’s (“Penserra” or “the
Sub-Adviser”) acts as the Sub-Adviser to the Fund. The Sub-Adviser has
responsibility to make day-to-day investment decisions for the Fund and selects
broker-dealers for executing portfolio transactions, subject to the
Sub-Adviser’s best execution obligations and the Trust’s and the Sub-Adviser’s
brokerage policies. Sub-Advisory fees earned by Penserra are paid by the
Adviser. For the services it provides to the Fund, the Sub-Adviser is
compensated by the Adviser from the management fees paid by the Fund to the
Adviser.
Fund Services serves as the Fund’s administrator,
fund accountant and transfer agent. U.S. Bank N.A. serves as custodian (the
“Custodian”) to the Fund. The Custodian is an affiliate of Fund Services. Fund
Services maintains the Fund’s books and records, calculates the Fund’s NAV,
prepares various federal and state regulatory filings, coordinates the payment
of fund expenses, reviews expense accruals and prepares materials supplied to
the Board of Trustees. The officers of the Trust and the Chief Compliance
Officer are also employees of Fund Services.
Quasar Distributors, LLC (“Quasar”) acts as the
Fund’s principal underwriter in a continuous public offering of the Fund’s
shares. Quasar is a wholly-owned broker-dealer subsidiary of Foreside Financial
Group, LLC.
NOTE 5 – PURCHASES AND SALES OF SECURITIES
For the period ended October
31, 2022, the cost of purchases and the proceeds from sales of securities,
excluding short-term securities, were $7,589,368 and $5,323,058, respectively.
For the period ended October
31, 2022, in-kind transactions associated with creations and redemptions were
$4,057,849 and $0, respectively. There were no purchases or sales of U.S.
Government securities during the period ended October 31, 2022.
During the period ended October 31, 2022, there were no realized gains and
losses from in-kind redemptions included in realized gain/(loss) on investments
in the Statement of Operations.
NOTE 6 – INCOME TAXES INFORMATION
As of October 31, 2022, the components of
accumulated earnings/(losses) on a tax basis were as follows:
|
Cost
of investments (a) |
|
$ |
5,334,967 |
|
|
Gross
unrealized appreciation |
|
|
333,641 |
|
|
Gross
unrealized depreciation |
|
|
(999,597 |
) |
|
Net
unrealized depreciation (a) |
|
|
(665,956 |
) |
|
Net
unrealized depreciation on foreign currency |
|
|
(56 |
) |
|
Undistributed
ordinary income |
|
|
- |
|
|
Undistributed
long-term capital gain |
|
|
- |
|
|
Total
distributable earnings |
|
|
- |
|
|
Other
accumulated gain/(loss) |
|
|
(1,067,852 |
) |
|
Total
accumulated gain/(loss) |
|
$ |
(1,733,864 |
) |
|
(a) |
The difference between the book-basis and
tax-basis net unrealized depreciation and cost is attributable to wash
sales. |
At October 31, 2022, the
Fund had $1,062,464 in short-term capital loss carryforwards which can be
carried forward indefinitely.
VegTech
Plant-Based Innovation & Climate ETF
NOTES
TO FINANCIAL STATEMENTS at October 31, 2022, Continued
At October 31, 2022, the
Fund deferred, on a tax basis, ordinary late year losses of $5,388.
The Fund did not make
distributions during the period ended October 31, 2022.
NOTE 7 – PRINCIPAL RISKS
Below is a summary of some, but not all, of the
principal risks of investing in the Fund, each of which may adversely affect the
Fund’s net asset value and total return. The Fund’s most recent prospectus
provides further descriptions of the Fund’s investment objective, principal
investment strategies and principal risks.
|
• |
New Adviser Risk . The
Adviser is a newly organized investment adviser and has no operating
history or performance track record, which may increase the risks
associated with investments in the Fund. |
|
• |
New Fund Risk. The Fund is a
recently organized investment company with no operating history. There can
be no assurance that the Fund will grow to or maintain an
economically viable size, in which case the Board may determine
to liquidate the Fund. |
|
• |
Initial Public Offering Risk
. The market value of IPO shares may fluctuate considerably due to
factors such as the absence of a prior public market, unseasoned trading,
the small number of shares available for trading and limited information
about the issuer. The purchase of IPO shares may involve high transaction
costs. IPO shares are subject to market risk and liquidity risk.
|
|
• |
General Market Risk –
Economies and financial markets throughout the world are becoming
increasingly interconnected, which increases the likelihood that events or
conditions in one country or region will adversely impact markets or
issuers in other countries or regions. Securities in the Fund’s portfolio
may underperform in comparison to securities in general financial markets,
a particular financial market or other asset classes due to a number of
factors, including inflation (or expectations for inflation), deflation
(or expectations for deflation), interest rates, global demand for
particular products or resources, market instability, debt crises and
downgrades, embargoes, tariffs, sanctions and other trade barriers,
regulatory events, other governmental trade or market control programs and
related geopolitical events. In addition, the value of the Fund’s
investments may be negatively affected by the occurrence of global events
such as war, terrorism, environmental disasters, natural disasters or
events, country instability, and infectious disease epidemics or
pandemics. For example, the outbreak of COVID-19, a novel coronavirus
disease, has negatively affected economies, markets and individual
companies throughout the world, including those in which the Fund invests.
The effects of this pandemic to public health and business and market
conditions, including exchange trading suspensions and closures, may
continue to have a significant negative impact on the performance of the
Fund’s investments, increase the Fund’s volatility, negatively impact the
Fund’s arbitrage and pricing mechanisms, exacerbate pre-existing
political, social and economic risks to the Fund, and negatively impact
broad segments of businesses and populations. The Fund’s operations may be
interrupted as a result, which may contribute to the negative impact on
investment performance. In addition, governments, their regulatory
agencies, or self-regulatory organizations may take actions in response to
the pandemic that affect the instruments in which the Fund invests, or the
issuers of such instruments, in ways that could have a significant
negative impact on the Fund’s investment performance. The full impact of
the COVID-19 pandemic, or other future epidemics or pandemics, is
currently unknown. |
|
• |
Climate Change and VegTech Policy
Risk. The Fund’s policy of investing in companies as a means
to promote positive climate change could cause the Fund to perform
differently compared to similar funds that do not have such a policy.
This policy may result in the Fund foregoing opportunities to buy certain
securities when it might otherwise be economically advantageous to do
so, or selling securities when it might be otherwise
economically disadvantageous for it to do so. The Fund will vote
proxies in a manner which is consistent with its VegTech and
climate policy themes, which may not always be consistent with
maximizing short-term performance of the issuer.
|
VegTech Plant-Based Innovation & Climate ETF
NOTES TO FINANCIAL STATEMENTS at October 31, 2022, Continued
|
• |
Foreign Securities Risk .
Foreign securities may be more volatile and less liquid than domestic
(U.S.) securities, which could affect the Fund’s investments. Securities
markets of other countries are generally smaller than U.S. securities
markets. |
|
• |
Non-Diversification Risk .
The Fund is non-diversified, which means that it may invest a high
percentage of its assets in a limited number of securities. Since the Fund
is non-diversified, its NAV and total returns may fluctuate or fall more
than a diversified fund. Gains or losses on a single stock may have a
greater impact on the Fund. |
|
• |
Depositary Receipt Risk.
Foreign receipts, which include ADRs, GDRs, and EDRs, are
securities that evidence ownership interests in a security or a pool of
securities issued by a foreign issuer. The risks of depositary receipts
include many risks associated with investing directly in foreign
securities, such as individual country risk and liquidity risk.
Unsponsored ADRs, which are issued by a depositary bank without the
participation or consent of the issuer, involve additional risks because
U.S. reporting requirements do not apply, and the issuing bank will
recover shareholder distribution costs from movement of share prices and
payment of dividends. |
|
• |
Sector Emphasis Risk. The
securities of companies in the same or related businesses, if comprising a
significant portion of the Fund’s portfolio, could react in some
circumstances negatively to market conditions, interest rates and
economic, regulatory or financial developments and adversely affect the
value of the portfolio to a greater extent than if such business comprised
a lesser portion of the Fund’s portfolio. |
|
• |
ETF Risks. The Fund is an
ETF, and, as a result of an ETF’s structure, it is exposed to the
following risks: |
|
• |
Authorized Participants, Market
Makers, and Liquidity Providers Concentration Risk. The Fund has a
limited number of financial institutions that may act as Authorized
Participants (“APs”). In addition, there may be a limited number of market
makers and/or liquidity providers in the marketplace. To the extent either
of the following events occur, Shares may trade at a material discount to
NAV and possibly face delisting: (i) APs exit the business or otherwise
become unable to process creation and/or redemption orders and no other
APs step forward to perform these services, or (ii) market makers and/or
liquidity providers exit the business or significantly reduce their
business activities and no other entities step forward to perform their
functions. |
|
• |
Costs of Buying or Selling Shares.
Due to the costs of buying or selling Shares, including brokerage
commissions imposed by brokers and bid-ask spreads, frequent trading of
Shares may significantly reduce investment results and an investment in
Shares may not be advisable for investors who anticipate regularly making
small investments. |
|
• |
Shares May Trade at Prices Other
Than NAV. As with all ETFs, Shares may be bought and sold in the
secondary market at market prices. Although it is expected that the market
price of Shares will approximate the Fund’s NAV, there may be times when
the market price of Shares is more than the NAV intra-day (premium) or
less than the NAV intra-day (discount) due to supply and demand of Shares
or during periods of market volatility. This risk is heightened in times
of market volatility, periods of steep market declines, and periods when
there is limited trading activity for Shares in the secondary market, in
which case such premiums or discounts may be significant.
|
|
• |
Trading . Although Shares are
listed for trading on NYSE Arca, Inc. and may be traded on U.S. exchanges
other than the Exchange, there can be no assurance that Shares will trade
with any volume, or at all, on any stock exchange. In stressed market
conditions, the liquidity of Shares may begin to mirror the liquidity of
the Fund’s underlying portfolio holdings, which can be significantly less
liquid than Shares, and this could lead to differences between the market
price of the Shares and the underlying value of those Shares.
|
NOTE 8 – TRUSTEES AND OFFICERS
Mr. Joe Redwine became the Audit Chairman of the
Board effective January 1, 2022. Ms. Michele Rackey was approved by the Board as
an Independent Trustee effective January 1, 2023. Mr. Kevin Hayden was approved
by the Board as Vice President, Treasurer and Ms. Cheryl King was approved as
Assistant Treasurer effective January 1, 2023. Mr. Ryan Charles resigned as
Assistant Secretary effective January 1, 2023.
