united states
securities and exchange commission
washington, d.c. 20549
form n-csr
certified shareholder report of registered management
investment companies
Investment Company Act file number 811-22718
Two Roads Shared Trust
(Exact name of registrant as specified in charter)
225 Pictoria Drive, Suite 450, Cincinnati, Ohio 45246
(Address of principal executive offices) (Zip code)
Richard Malinowski, Gemini Fund Services, LLC.
4221 North 203rd Street, Suite 100, Elkhorn, NE 68022
(Name and address of agent for service)
Registrant's telephone number, including area code: 631-470-2619
Date of fiscal year end: 10/31
Date of reporting period: 4/30/21
Item 1. Reports to Stockholders.
LeaderShares® Activist Leaders® ETF |
PORTFOLIO REVIEW |
April 30, 2021 (Unaudited) |
The Fund’s performance figures* for the period ended April 30, 2021, compared to its benchmark:
Six Months | Since Inception(a) | |
LeaderShares® Activist Leaders® ETF - NAV | 53.61% | 49.25% |
LeaderShares® Activist Leaders® ETF - Market Price | 53.34% | 49.05% |
S&P 500 Index (b) | 28.85% | 23.92% |
Redwood Activist Leaders® Index (c) | 56.01% | 46.98% |
* | The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s 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 redemption of Fund shares. 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 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. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception (10/26/2020) to the first day of secondary market trading shares of the Fund, the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. The Fund’s total annual operating expenses are 0.75% per the March 1, 2021 prospectus. Please see the Financial Highlights for a more recent expense ratio. For performance information current to the most recent month-end, please call toll-free 1-480-757-4277. |
(a) | As of the close of business on the day of commencement of trading October 26, 2020 |
(b) | The S&P 500 Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies. The S&P 500 Index is a float-weighted index, meaning company market capitalizations are adjusted by the number of shares available for public trading. Investors cannot invest directly in an index or benchmark. Index returns are gross of any fees, brokerage commissions or other expenses of investing. |
(c) | Redwood Activist Leaders® Index, the Fund adviser’s proprietary index, focuses on stocks that are the target of shareholder activism utilizing a proprietary selection methodology built on the foundation of tracking public SEC 13D filings of Activist Leaders® as defined by the advisor. Investors cannot invest directly in an index or benchmark. Index returns are gross of any fees, brokerage commissions or other expenses of investing. |
PORTFOLIO ANALYSIS | ||
April 30, 2021 | ||
Percent of | ||
Top 10 Industries | Net Assets | |
Software | 13.3% | |
Asset Management | 8.1% | |
Technology Services | 8.0% | |
Oil & Gas Producers | 8.0% | |
Biotech & Pharma | 7.9% | |
Leisure Facilities & Services | 5.3% | |
Technology Hardware | 5.3% | |
Food | 5.3% | |
Health Care Facilities & Services | 5.3% | |
Transportation Equipment | 5.3% | |
Other/Cash and Equivalents | 28.2% | |
Total | 100.0% | |
Please refer to the Portfolio of Investments for a detailed listing of the Fund’s holdings.
LeaderShares® AlphaFactor® Tactical Focused ETF |
PORTFOLIO REVIEW |
April 30, 2021 (Unaudited) |
The Fund’s performance figures* for the period ended April 30, 2021, compared to its benchmark:
Six Months | Since Inception(a) | |
LeaderShares® AlphaFactor® Tactical Focused ETF - NAV | 41.24% | 36.10% |
LeaderShares® AlphaFactor® Tactical Focused ETF - Market Price | 41.18% | 36.10% |
S&P 500 Index (b) | 28.85% | 23.92% |
Redwood AlphaFactor® Tactical Focused Index (c) | 42.30% | 32.62% |
* | The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s 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 redemption of Fund shares. 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 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. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception (10/26/2020) to the first day of secondary market trading shares of the Fund, the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. The Fund’s total annual operating expenses are 0.99% per the March 1, 2021 prospectus. Please see the Financial Highlights for a more recent expense ratio. For performance information current to the most recent month-end, please call toll-free 1-480-757-4277. |
(a) | As of the close of business on the day of commencement of trading October 26, 2020 |
(b) | The S&P 500 Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies. The S&P 500 Index is a float-weighted index, meaning company market capitalizations are adjusted by the number of shares available for public trading. Investors cannot invest directly in an index or benchmark. Index returns are gross of any fees, brokerage commissions or other expenses of investing. |
(c) | The Redwood AlphaFactor® Tactical Focused Index, the Fund adviser’s proprietary index, utilizes a quantitative factor-based investment methodology focused on the largest 1,000 U.S. common stocks based on market capitalization, with a tactical overlay that seeks to determine when equity exposure should be turned on or off. Investors cannot invest directly in an index or benchmark. Index returns are gross of any fees, brokerage commissions or other expenses of investing. |
PORTFOLIO ANALYSIS | ||
April 30, 2021 | ||
Percent of | ||
Top 10 Industries | Net Assets | |
Insurance | 17.1% | |
Technology Hardware | 9.9% | |
Retail - Consumer Staples | 9.6% | |
Commercial Support Services | 6.9% | |
Cable & Satellite | 6.7% | |
Office REIT | 6.6% | |
Institutional Financial Services | 6.6% | |
Internet Media & Services | 3.5% | |
Asset Management | 3.5% | |
Mortgage Finance | 3.4% | |
Other/Cash and Equivalents | 26.2% | |
Total | 100.0% | |
Please refer to the Portfolio of Investments for a detailed listing of the Fund’s holdings.
Leadershares® AlphaFactor® US Core Equity ETF |
PORTFOLIO REVIEW |
April 30, 2021 (Unaudited) |
The Fund’s performance figures* for the period ended April 30, 2021, compared to its benchmark:
Six Months | One Year | Since Inception(a) | |
LeaderShares® AlphaFactor® US Core Equity ETF - NAV | 31.38% | 49.13% | 11.33% |
LeaderShares® AlphaFactor® US Core Equity ETF - Market Price | 31.34% | 49.15% | 11.32% |
S&P 500 Index (b) | 28.85% | 45.98% | 17.04% |
AlphaFactor® US Core Equity Index (c) | 32.19% | 51.00% | 35.14% |
* | The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s 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 redemption of Fund shares. 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 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. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception (10/1/2018) to the first day of secondary market trading shares of the Fund, the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. The Fund’s total annual operating expenses are 0.75% per the March 1, 2021 prospectus. Please see the Financial Highlights for a more recent expense ratio. For performance information current to the most recent month-end, please call toll-free 1-480-757-4277. |
(a) | As of the close of business on the day of commencement of trading October 1, 2018 |
(b) | The S&P 500 Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies. The S&P 500 Index is a float-weighted index, meaning company market capitalizations are adjusted by the number of shares available for public trading. Investors cannot invest directly in an index or benchmark. Index returns are gross of any fees, brokerage commissions or other expenses of investing. |
(c) | The AlphaFactor® US Core Equity Index, the Fund advisor’s proprietary index, utilizes a quantitative rules-based investment methodology that applies a multi-factor ranking process and is focused on the largest 1,000 U.S. common stocks based on market capitalization. Companies within this group of the top 1,000 market capitalizations may be considered large or mid-cap companies. Investors cannot invest directly in an index or benchmark. Index returns are gross of any fees, brokerage commissions or other expenses of investing. |
PORTFOLIO ANALYSIS | ||
April 30, 2021 | ||
Percent of | ||
Top 10 Industries | Net Assets | |
Technology Services | 7.2% | |
Retail - Discretionary | 6.9% | |
Software | 6.0% | |
Transportation & Logistics | 6.0% | |
Household Products | 5.6% | |
Home Construction | 5.1% | |
Insurance | 5.1% | |
Health Care Facilities & Services | 5.0% | |
Medical Equipment & Devices | 4.9% | |
Chemicals | 4.3% | |
Other/Cash and Equivalents | 43.9% | |
Total | 100.0% | |
Please refer to the Portfolio of Investments for a detailed listing of the Fund’s holdings.
LeaderShares® Equity Skew ETF |
PORTFOLIO REVIEW |
April 30, 2021 (Unaudited) |
The Fund’s performance figures* for the period ended April 30, 2021, compared to its benchmark:
Six Months | Since Inception(a) | |
LeaderShares® Equity Skew ETF - NAV | 35.40% | 51.98% |
LeaderShares® Equity Skew ETF - Market Price | 36.41% | 51.85% |
S&P 500 Index (b) | 28.85% | 44.98% |
* | The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s 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 redemption of Fund shares. 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 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. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception (5/11/2020) to the first day of secondary market trading shares of the Fund, the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. The Fund’s total annual operating expenses are 0.75% per the March 1, 2021 prospectus. Please see the Financial Highlights for a more recent expense ratio. For performance information current to the most recent month-end, please call toll-free 1-480-757-4277. |
(a) | As of the close of business on the day of commencement of trading May 11, 2020 |
(b) | The S&P 500 Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies. The S&P 500 Index is a float-weighted index, meaning company market capitalizations are adjusted by the number of shares available for public trading. Investors cannot invest directly in an index or benchmark. Index returns are gross of any fees, brokerage commissions or other expenses of investing. |
PORTFOLIO ANALYSIS | ||
April 30, 2021 | ||
Percent of | ||
Top 10 Industries | Net Assets | |
Exchange Traded Funds | 84.1% | |
Banking | 1.5% | |
Biotech & Pharma | 1.0% | |
Insurance | 0.9% | |
Oil & Gas Producers | 0.9% | |
Technology Services | 0.6% | |
Health Care Facilities & Services | 0.6% | |
Electric Utilities | 0.6% | |
Semiconductors | 0.6% | |
Diversified Industrials | 0.6% | |
Other/Cash and Equivalents | 8.6% | |
Total | 100.0% | |
Please refer to the Portfolio of Investments for a detailed listing of the Fund’s holdings.
LEADERSHARES ACTIVIST LEADERS ETF |
SCHEDULE OF INVESTMENTS (Unaudited) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 98.4% | ||||||||
ASSET MANAGEMENT - 8.1% | ||||||||
59,569 | Invesco Ltd. | $ | 1,608,363 | |||||
46,785 | Janus Henderson Group plc | 1,608,937 | ||||||
28,173 | KKR & Company, Inc. | 1,594,028 | ||||||
4,811,328 | ||||||||
AUTOMOTIVE - 2.6% | ||||||||
152,129 | Tenneco, Inc., Class A(a) | 1,531,939 | ||||||
BIOTECH & PHARMA - 7.9% | ||||||||
48,877 | Bausch Health Companies, Inc.(a) | 1,572,373 | ||||||
139,801 | Innoviva, Inc.(a) | 1,600,722 | ||||||
142,612 | Ironwood Pharmaceuticals, Inc.(a) | 1,574,436 | ||||||
4,747,531 | ||||||||
CHEMICALS - 2.6% | ||||||||
60,805 | GCP Applied Technologies, Inc.(a) | 1,562,080 | ||||||
ENGINEERING & CONSTRUCTION - 2.7% | ||||||||
23,790 | AECOM(a) | 1,580,370 | ||||||
FOOD - 5.3% | ||||||||
38,687 | Hain Celestial Group, Inc.(a) | 1,586,554 | ||||||
33,455 | TreeHouse Foods, Inc.(a) | 1,592,458 | ||||||
3,179,012 | ||||||||
HEALTH CARE FACILITIES & SERVICES - 5.3% | ||||||||
16,935 | Magellan Health, Inc.(a) | 1,595,277 | ||||||
59,258 | MEDNAX, Inc.(a) | 1,559,671 | ||||||
3,154,948 | ||||||||
HOME & OFFICE PRODUCTS - 2.6% | ||||||||
58,584 | Newell Brands, Inc. | 1,579,425 | ||||||
INSURANCE - 2.6% | ||||||||
22,173 | eHealth, Inc.(a) | 1,568,518 | ||||||
LEISURE FACILITIES & SERVICES - 5.3% | ||||||||
16,396 | Papa John’s International, Inc. | 1,585,821 |
LEADERSHARES ACTIVIST LEADERS ETF |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 98.4% (Continued) | ||||||||
LEISURE FACILITIES & SERVICES - 5.3% (Continued) | ||||||||
23,376 | Restaurant Brands International, Inc. | $ | 1,603,827 | |||||
3,189,648 | ||||||||
MACHINERY - 2.7% | ||||||||
71,788 | Welbilt, Inc.(a) | 1,603,744 | ||||||
MEDICAL EQUIPMENT & DEVICES - 2.7% | ||||||||
24,849 | Merit Medical Systems, Inc.(a) | 1,580,396 | ||||||
OIL & GAS PRODUCERS - 8.0% | ||||||||
20,639 | Cheniere Energy, Inc.(a) | 1,599,935 | ||||||
66,025 | Delek US Holdings, Inc. | 1,566,773 | ||||||
62,582 | Occidental Petroleum Corporation | 1,587,080 | ||||||
4,753,788 | ||||||||
REAL ESTATE OWNERS & DEVELOPERS - 2.7% | ||||||||
14,846 | Howard Hughes Corporation(a) | 1,602,477 | ||||||
SOFTWARE - 13. 3% | ||||||||
41,820 | ACI Worldwide, Inc.(a) | 1,579,960 | ||||||
74,677 | Box, Inc., Class A(a) | 1,590,620 | ||||||
124,675 | Cloudera, Inc.(a) | 1,582,126 | ||||||
23,066 | CommVault Systems, Inc.(a) | 1,603,318 | ||||||
73,338 | Evolent Health, Inc., Class A(a) | 1,588,501 | ||||||
7,944,525 | ||||||||
SPECIALTY FINANCE - 2.7% | ||||||||
81,379 | SLM Corporation | 1,599,911 | ||||||
TECHNOLOGY HARDWARE - 5.3% | ||||||||
17,081 | Seagate Technology PLC | 1,585,800 | ||||||
66,272 | Xerox Holdings Corporation | 1,599,806 | ||||||
3,185,606 | ||||||||
TECHNOLOGY SERVICES - 8.0% | ||||||||
235,027 | Conduent, Inc.(a) | 1,598,183 | ||||||
34,647 | Green Dot Corporation, Class A(a) | 1,585,447 |
LEADERSHARES ACTIVIST LEADERS ETF |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 98.4% (Continued) | ||||||||
TECHNOLOGY SERVICES - 8.0% (Continued) | ||||||||
61,903 | Nielsen Holdings plc | $ | 1,587,812 | |||||
4,771,442 | ||||||||
TRANSPORTATION EQUIPMENT - 5.3% | ||||||||
36,093 | Navistar International Corporation(a) | 1,597,115 | ||||||
56,122 | Trinity Industries, Inc. | 1,551,212 | ||||||
3,148,327 | ||||||||
WHOLESALE - DISCRETIONARY - 2.7% | ||||||||
34,223 | LKQ Corporation(a) | 1,598,556 | ||||||
TOTAL COMMON STOCKS (Cost $47,166,944) | 58,693,571 | |||||||
TOTAL INVESTMENTS - 98.4% (Cost $47,166,944) | $ | 58,693,571 | ||||||
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.6% | 933,331 | |||||||
NET ASSETS - 100.0% | $ | 59,626,902 |
LTD | - Limited Company |
PLC | - Public Limited Company |
(a) | Non-income producing security. |
See accompanying notes which are an integral part of these financial statements.
LEADERSHARES ALPHAFACTOR TACTICAL FOCUSED ETF |
SCHEDULE OF INVESTMENTS (Unaudited) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 99.1% | ||||||||
AEROSPACE & DEFENSE - 3.3% | ||||||||
15,141 | L3Harris Technologies, Inc. | $ | 3,167,951 | |||||
APPAREL & TEXTILE PRODUCTS - 3.2% | ||||||||
23,039 | NIKE, Inc., Class B | 3,055,432 | ||||||
ASSET MANAGEMENT - 3.5% | ||||||||
13,118 | Ameriprise Financial, Inc. | 3,389,691 | ||||||
AUTOMOTIVE - 3.1% | ||||||||
85,684 | Gentex Corporation | 3,014,363 | ||||||
BIOTECH & PHARMA - 3.1% | ||||||||
12,320 | Amgen, Inc. | 2,952,365 | ||||||
CABLE & SATELLITE - 6.7% | ||||||||
93,443 | Altice USA, Inc., Class A(a) | 3,392,915 | ||||||
495,951 | Sirius XM Holdings, Inc. | 3,025,301 | ||||||
6,418,216 | ||||||||
COMMERCIAL SUPPORT SERVICES - 6.9% | ||||||||
141,473 | H&R Block, Inc. | 3,149,189 | ||||||
39,259 | Robert Half International, Inc. | 3,439,481 | ||||||
6,588,670 | ||||||||
ELECTRICAL EQUIPMENT - 3.2% | ||||||||
21,413 | Keysight Technologies, Inc.(a) | 3,090,967 | ||||||
HOUSEHOLD PRODUCTS - 3.1% | ||||||||
56,778 | Nu Skin Enterprises, Inc., Class A | 3,001,285 | ||||||
INSTITUTIONAL FINANCIAL SERVICES - 6.6% | ||||||||
99,059 | Jefferies Financial Group, Inc. | 3,220,408 | ||||||
50,100 | SEI Investments Company | 3,078,144 | ||||||
6,298,552 | ||||||||
INSURANCE - 17.1% | ||||||||
59,436 | Aflac, Inc. | 3,193,496 |
LEADERSHARES ALPHAFACTOR TACTICAL FOCUSED ETF |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 99.1% (Continued) | ||||||||
INSURANCE - 17.1% (Continued) | ||||||||
26,233 | Allstate Corporation | $ | 3,326,343 | |||||
26,379 | American Financial Group, Inc. | 3,240,924 | ||||||
11,925 | Berkshire Hathaway, Inc., Class B(a) | 3,278,779 | ||||||
23,405 | Hanover Insurance Group, Inc. | 3,237,146 | ||||||
16,276,688 | ||||||||
INTERNET MEDIA & SERVICES - 3.5% | ||||||||
15,510 | VeriSign, Inc.(a) | 3,393,123 | ||||||
MORTGAGE FINANCE - 3.4% | ||||||||
181,565 | AGNC Investment Corporation | 3,255,460 | ||||||
OFFICE REIT - 6.6% | ||||||||
234,896 | Brandywine Realty Trust | 3,178,144 | ||||||
42,814 | SL Green Realty Corporation | 3,168,664 | ||||||
6,346,808 | ||||||||
RETAIL - CONSUMER STAPLES - 9.6% | ||||||||
155,408 | Albertsons Companies, Inc. | 2,885,927 | ||||||
15,239 | Dollar General Corporation | 3,272,575 | ||||||
82,648 | Kroger Company | 3,019,958 | ||||||
9,178,460 | ||||||||
SEMICONDUCTORS - 2.9% | ||||||||
47,947 | Intel Corporation | 2,758,391 | ||||||
SOFTWARE - 3.4% | ||||||||
43,522 | Oracle Corporation | 3,298,532 | ||||||
TECHNOLOGY HARDWARE - 9.9% | ||||||||
27,608 | Arrow Electronics, Inc.(a) | 3,149,245 | ||||||
96,283 | HP, Inc. | 3,284,213 | ||||||
124,983 | Xerox Holdings Corporation | 3,017,090 | ||||||
9,450,548 |
LEADERSHARES ALPHAFACTOR TACTICAL FOCUSED ETF |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 99.1% (Continued) | ||||||||
TECHNOLOGY HARDWARE - 9.9% (Continued) | ||||||||
TOTAL COMMON STOCKS (Cost $84,434,044) | $ | 94,935,502 | ||||||
TOTAL INVESTMENTS - 99.1% (Cost $84,434,044) | $ | 94,935,502 | ||||||
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.9% | 884,446 | |||||||
NET ASSETS - 100.0% | $ | 95,819,948 |
REIT | - Real Estate Investment Trust |
(a) | Non-income producing security. |
See accompanying notes which are an integral part of these financial statements.
LEADERSHARES ALPHAFACTOR US CORE EQUITY ETF |
SCHEDULE OF INVESTMENTS (Unaudited) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 99.0% | ||||||||
ASSET MANAGEMENT - 1.1% | ||||||||
3,765 | Ameriprise Financial, Inc. | $ | 972,876 | |||||
AUTOMOTIVE - 0.9% | ||||||||
24,640 | Gentex Corporation | 866,835 | ||||||
BIOTECH & PHARMA - 0.9% | ||||||||
3,510 | Amgen, Inc. | 841,136 | ||||||
CABLE & SATELLITE - 2.1% | ||||||||
26,636 | Altice USA, Inc., Class A(a) | 967,153 | ||||||
1,393 | Charter Communications, Inc., Class A(a) | 938,116 | ||||||
1,905,269 | ||||||||
CHEMICALS - 4. 3% | ||||||||
4,727 | Avery Dennison Corporation | 1,012,382 | ||||||
5,812 | Celanese Corporation | 910,450 | ||||||
3,534 | Sherwin-Williams Company | 967,857 | ||||||
33,286 | Valvoline, Inc. | 1,045,179 | ||||||
3,935,868 | ||||||||
COMMERCIAL SUPPORT SERVICES - 0.9% | ||||||||
6,257 | FTI Consulting, Inc.(a) | 868,784 | ||||||
CONSTRUCTION MATERIALS - 1.0% | ||||||||
9,506 | Owens Corning | 920,276 | ||||||
CONTAINERS & PACKAGING - 3.0% | ||||||||
47,778 | Graphic Packaging Holding Company | 886,282 | ||||||
19,152 | Sealed Air Corporation | 946,109 | ||||||
20,685 | Silgan Holdings, Inc. | 872,286 | ||||||
2,704,677 | ||||||||
DIVERSIFIED INDUSTRIALS - 2.0% | ||||||||
6,387 | Dover Corporation | 952,877 | ||||||
4,025 | Honeywell International, Inc. | 897,736 | ||||||
1,850,613 |
LEADERSHARES ALPHAFACTOR US CORE EQUITY ETF |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 99.0% (Continued) | ||||||||
E-COMMERCE DISCRETIONARY - 0.9% | ||||||||
14,049 | eBay, Inc. | $ | 783,794 | |||||
ELECTRICAL EQUIPMENT - 1.0% | ||||||||
12,876 | A O Smith Corporation | 872,349 | ||||||
ENGINEERING & CONSTRUCTION - 1.0% | ||||||||
13,396 | AECOM(a) | 889,896 | ||||||
ENTERTAINMENT CONTENT - 2. 8% | ||||||||
9,313 | Activision Blizzard, Inc. | 849,252 | ||||||
20,096 | Discovery, Inc. -Series A (a) | 756,815 | ||||||
6,428 | Electronic Arts, Inc. | 913,291 | ||||||
2,519,358 | ||||||||
FOOD - 0.9% | ||||||||
19,651 | Hain Celestial Group, Inc.(a) | 805,888 | ||||||
HEALTH CARE FACILITIES & SERVICES - 5.0% | ||||||||
8,097 | DaVita, Inc.(a) | 943,543 | ||||||
2,074 | Humana, Inc. | 923,428 | ||||||
4,473 | McKesson Corporation | 838,956 | ||||||
6,812 | Quest Diagnostics, Inc. | 898,367 | ||||||
2,341 | UnitedHealth Group, Inc. | 933,591 | ||||||
4,537,885 | ||||||||
HOME & OFFICE PRODUCTS - 1.9% | ||||||||
3,578 | Scotts Miracle-Gro Company (The) | 827,090 | ||||||
23,703 | Tempur Sealy International, Inc. | 904,033 | ||||||
1,731,123 | ||||||||
HOME CONSTRUCTION - 5.1% | ||||||||
8,632 | Lennar Corporation, Class A | 894,275 | ||||||
14,645 | Masco Corporation | 935,523 | ||||||
4,512 | Mohawk Industries, Inc.(a) | 927,216 | ||||||
16,678 | PulteGroup, Inc. | 986,004 | ||||||
15,392 | Toll Brothers, Inc. | 965,078 | ||||||
4,708,096 |
LEADERSHARES ALPHAFACTOR US CORE EQUITY ETF |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 99.0% (Continued) | ||||||||
HOUSEHOLD PRODUCTS - 5.6% | ||||||||
9,928 | Church & Dwight Company, Inc. | $ | 851,227 | |||||
4,497 | Clorox Company | 820,703 | ||||||
11,026 | Colgate-Palmolive Company | 889,797 | ||||||
16,346 | Nu Skin Enterprises, Inc., Class A | 864,050 | ||||||
6,414 | Procter & Gamble Company (The) | 855,756 | ||||||
10,140 | Spectrum Brands Holdings, Inc. | 893,739 | ||||||
5,175,272 | ||||||||
INDUSTRIAL SUPPORT SERVICES - 1.0% | ||||||||
2,212 | WW Grainger, Inc. | 958,990 | ||||||
INSTITUTIONAL FINANCIAL SERVICES - 2.9% | ||||||||
2,673 | Goldman Sachs Group, Inc. | 931,407 | ||||||
28,692 | Jefferies Financial Group, Inc. | 932,777 | ||||||
28,102 | Virtu Financial, Inc., Class A | 832,662 | ||||||
2,696,846 | ||||||||
INSURANCE - 5.1% | ||||||||
3,408 | Berkshire Hathaway, Inc., Class B(a) | 937,030 | ||||||
26,929 | Equitable Holdings, Inc. | 921,780 | ||||||
7,200 | Marsh & McLennan Companies, Inc. | 977,039 | ||||||
14,330 | MetLife, Inc. | 911,818 | ||||||
5,906 | Primerica, Inc. | 943,602 | ||||||
4,691,269 | ||||||||
INTERNET MEDIA & SERVICES - 1.9% | ||||||||
420 | Alphabet, Inc., Class A(a) | 988,470 | ||||||
13,536 | Twitter, Inc.(a) | 747,458 | ||||||
1,735,928 | ||||||||
LEISURE PRODUCTS - 1.1% | ||||||||
9,179 | Brunswick Corporation | 983,346 | ||||||
MACHINERY - 2.0% | ||||||||
14,970 | Donaldson Company, Inc. | 941,314 | ||||||
3,812 | Snap-on, Inc. | 905,731 | ||||||
1,847,045 |
LEADERSHARES ALPHAFACTOR US CORE EQUITY ETF |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 99.0% (Continued) | ||||||||
MEDICAL EQUIPMENT & DEVICES - 4.9% | ||||||||
6,862 | Agilent Technologies, Inc. | $ | 917,038 | |||||
13,733 | Bruker Corporation | 940,985 | ||||||
11,767 | Hologic, Inc.(a) | 771,327 | ||||||
758 | Mettler-Toledo International, Inc.(a) | 995,496 | ||||||
2,102 | Teleflex, Inc. | 888,053 | ||||||
4,512,899 | ||||||||
METALS & MINING - 1.0% | ||||||||
14,541 | Newmont Corporation | 907,504 | ||||||
PUBLISHING & BROADCASTING - 1.0% | ||||||||
6,252 | Nexstar Media Group, Inc., Class A | 921,607 | ||||||
RETAIL - CONSUMER STAPLES - 2.0% | ||||||||
4,328 | Dollar General Corporation | 929,438 | ||||||
6,405 | Walmart, Inc. | 896,124 | ||||||
1,825,562 | ||||||||
RETAIL - DISCRETIONARY – 6.9 % | ||||||||
9,341 | AutoNation, Inc.(a) | 957,265 | ||||||
619 | AutoZone, Inc.(a) | 906,290 | ||||||
7,624 | Best Buy Company, Inc. | 886,442 | ||||||
4,611 | Lowe’s Companies, Inc. | 904,909 | ||||||
1,727 | O’Reilly Automotive, Inc.(a) | 954,824 | ||||||
71,825 | Qurate Retail, Inc. -Series A | 854,718 | ||||||
4,809 | Williams-Sonoma, Inc. | 821,137 | ||||||
6,285,585 | ||||||||
SEMICONDUCTORS - 3.8% | ||||||||
2,669 | KLA Corporation | 841,669 | ||||||
1,462 | Lam Research Corporation | 907,098 | ||||||
4,781 | Qorvo, Inc.(a) | 899,641 | ||||||
4,787 | Skyworks Solutions, Inc. | 868,027 | ||||||
3,516,435 | ||||||||
SOFTWARE - 6.0% | ||||||||
11,750 | Black Knight, Inc.(a) | 850,935 | ||||||
6,179 | Citrix Systems, Inc. | 765,269 |
LEADERSHARES ALPHAFACTOR US CORE EQUITY ETF |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 99.0% (Continued) | ||||||||
SOFTWARE - 6.0% (Continued) | ||||||||
3,714 | Microsoft Corporation | $ | 936,597 | |||||
12,453 | Oracle Corporation | 943,813 | ||||||
22,436 | Teradata Corporation(a) | 1,109,908 | ||||||
2,535 | Twilio, Inc., Class A(a) | 932,373 | ||||||
5,538,895 | ||||||||
TECHNOLOGY HARDWARE - 3.9% | ||||||||
7,108 | Apple, Inc. | 934,418 | ||||||
7,820 | Arrow Electronics, Inc.(a) | 892,027 | ||||||
27,524 | HP, Inc. | 938,844 | ||||||
2,763 | Ubiquiti, Inc. | 788,367 | ||||||
3,553,656 | ||||||||
TECHNOLOGY SERVICES - 7.2% | ||||||||
10,900 | Booz Allen Hamilton Holding Corporation | 904,155 | ||||||
5,309 | CDW Corporation/DE | 946,754 | ||||||
11,029 | CoreLogic, Inc. | 879,011 | ||||||
4,804 | Gartner, Inc.(a) | 941,008 | ||||||
2,439 | Mastercard, Inc., Class A | 931,844 | ||||||
2,930 | Moody’s Corporation | 957,260 | ||||||
2,069 | MSCI, Inc. | 1,005,058 | ||||||
6,565,090 | ||||||||
TRANSPORTATION & LOGISTICS - 6.0% | ||||||||
9,131 | CH Robinson Worldwide, Inc. | 886,437 | ||||||
3,333 | Kansas City Southern | 973,937 | ||||||
18,290 | Knight-Swift Transportation Holdings, Inc. | 861,825 | ||||||
3,249 | Norfolk Southern Corporation | 907,251 | ||||||
3,661 | Old Dominion Freight Line, Inc. | 943,842 | ||||||
3,980 | Union Pacific Corporation | 883,918 | ||||||
5,457,210 | ||||||||
TRANSPORTATION EQUIPMENT - 0.9% | ||||||||
30,774 | Trinity Industries, Inc. | 850,593 | ||||||
WHOLESALE - DISCRETIONARY - 1.0% | ||||||||
20,408 | LKQ Corporation(a) | 953,258 |
LEADERSHARES ALPHAFACTOR US CORE EQUITY ETF |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 99.0% (Continued) | ||||||||
WHOLESALE - DISCRETIONARY - 1.0% (Continued) | ||||||||
TOTAL COMMON STOCKS (Cost $85,191,768) | $ | 90,691,713 | ||||||
TOTAL INVESTMENTS - 99.0% (Cost $85,191,768) | $ | 90,691,713 | ||||||
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.0% | 889,654 | |||||||
NET ASSETS - 100.0% | $ | 91,581,367 |
MSCI | - Morgan Stanley Capital International |
(a) | Non-income producing security. |
See accompanying notes which are an integral part of these financial statements.
LEADERSHARES EQUITY SKEW ETF |
SCHEDULE OF INVESTMENTS (Unaudited) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 13.7% | ||||||||
AEROSPACE & DEFENSE - 0.4% | ||||||||
449 | Boeing Company (The)(a) | $ | 105,205 | |||||
198 | General Dynamics Corporation | 37,666 | ||||||
111 | Lockheed Martin Corporation | 42,242 | ||||||
129 | Northrop Grumman Corporation | 45,723 | ||||||
1,318 | Raytheon Technologies Corporation | 109,710 | ||||||
340,546 | ||||||||
APPAREL & TEXTILE PRODUCTS - 0.1% | ||||||||
390 | NIKE, Inc., Class B | 51,722 | ||||||
ASSET MANAGEMENT - 0.2% | ||||||||
34 | BlackRock, Inc. | 27,856 | ||||||
1,305 | Charles Schwab Corporation | 91,872 | ||||||
119,728 | ||||||||
AUTOMOTIVE - 0.1% | ||||||||
3,337 | Ford Motor Company(a) | 38,509 | ||||||
1,063 | General Motors Company(a) | 60,825 | ||||||
99,334 | ||||||||
BANKING - 1.5% | ||||||||
6,528 | Bank of America Corporation | 264,580 | ||||||
1,799 | Citigroup, Inc. | 128,161 | ||||||
2,660 | JPMorgan Chase & Company | 409,136 | ||||||
371 | PNC Financial Services Group, Inc. | 69,358 | ||||||
1,172 | Truist Financial Corporation | 69,511 | ||||||
1,184 | US Bancorp | 70,270 | ||||||
3,620 | Wells Fargo & Company | 163,081 | ||||||
1,174,097 | ||||||||
BEVERAGES - 0.3% | ||||||||
2,173 | Coca-Cola Company | 117,299 | ||||||
145 | Constellation Brands, Inc., Class A | 34,846 | ||||||
686 | PepsiCo, Inc. | 98,894 | ||||||
251,039 | ||||||||
BIOTECH & PHARMA - 1.0% | ||||||||
383 | AbbVie, Inc. | 42,705 | ||||||
248 | Amgen, Inc. | 59,431 |
LEADERSHARES EQUITY SKEW ETF |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 13.7% (Continued) | ||||||||
BIOTECH & PHARMA - 1.0% (Continued) | ||||||||
929 | Bristol-Myers Squibb Company | $ | 57,988 | |||||
265 | Eli Lilly and Company | 48,434 | ||||||
1,079 | Gilead Sciences, Inc. | 68,484 | ||||||
1,355 | Johnson & Johnson | 220,498 | ||||||
1,137 | Merck & Company, Inc. | 84,707 | ||||||
4,800 | Pfizer, Inc. | 185,520 | ||||||
767,767 | ||||||||
CABLE & SATELLITE - 0.2% | ||||||||
2,220 | Comcast Corporation, Class A | 124,653 | ||||||
CHEMICALS - 0.2% | ||||||||
103 | Air Products and Chemicals, Inc. | 29,713 | ||||||
655 | Corteva, Inc. | 31,938 | ||||||
465 | DuPont de Nemours, Inc. | 35,856 | ||||||
211 | International Flavors & Fragrances, Inc. | 29,998 | ||||||
207 | PPG Industries, Inc. | 35,447 | ||||||
162,952 | ||||||||
COMMERCIAL SUPPORT SERVICES - 0.0%(b) | ||||||||
203 | Waste Management, Inc. | 28,008 | ||||||
DATA CENTER REIT - 0.0%(b) | ||||||||
241 | Digital Realty Trust, Inc. | 37,189 | ||||||
DIVERSIFIED INDUSTRIALS - 0.5% | ||||||||
499 | 3M Company | 98,373 | ||||||
310 | Emerson Electric Company | 28,052 | ||||||
7,378 | General Electric Company | 96,799 | ||||||
599 | Honeywell International, Inc. | 133,600 | ||||||
139 | Illinois Tool Works, Inc. | 32,034 | ||||||
388,858 | ||||||||
ELECTRIC UTILITIES - 0.6% | ||||||||
426 | American Electric Power Company, Inc. | 37,790 | ||||||
692 | Dominion Energy, Inc. | 55,291 | ||||||
654 | Duke Energy Corporation | 65,851 |
LEADERSHARES EQUITY SKEW ETF |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 13.7% (Continued) | ||||||||
ELECTRIC UTILITIES - 0.6% (Continued) | ||||||||
290 | Eversource Energy | $ | 25,004 | |||||
834 | Exelon Corporation | 37,480 | ||||||
942 | NextEra Energy, Inc. | 73,014 | ||||||
431 | Public Service Enterprise Group, Inc. | 27,222 | ||||||
260 | Sempra Energy | 35,768 | ||||||
899 | Southern Company | 59,487 | ||||||
269 | WEC Energy Group, Inc. | 26,139 | ||||||
453 | Xcel Energy, Inc. | 32,299 | ||||||
475,345 | ||||||||
ENTERTAINMENT CONTENT - 0.4% | ||||||||
268 | Activision Blizzard, Inc. | 24,439 | ||||||
1,566 | Walt Disney Company(a) | 291,307 | ||||||
315,746 | ||||||||
FOOD - 0.1% | ||||||||
518 | General Mills, Inc. | 31,526 | ||||||
1,223 | Mondelez International, Inc., Class A | 74,371 | ||||||
105,897 | ||||||||
HEALTH CARE FACILITIES & SERVICES - 0.6% | ||||||||
215 | Anthem, Inc. | 81,569 | ||||||
501 | Centene Corporation(a) | 30,932 | ||||||
301 | Cigna Corporation | 74,952 | ||||||
1,127 | CVS Health Corporation | 86,103 | ||||||
228 | HCA Healthcare, Inc. | 45,842 | ||||||
133 | McKesson Corporation | 24,945 | ||||||
390 | UnitedHealth Group, Inc. | 155,532 | ||||||
499,875 | ||||||||
HEALTH CARE REIT - 0.0% (b) | ||||||||
363 | Welltower, Inc. | 27,236 | ||||||
HOUSEHOLD PRODUCTS - 0.3% | ||||||||
348 | Colgate-Palmolive Company | 28,084 | ||||||
85 | Estee Lauder Companies, Inc., Class A | 26,673 | ||||||
175 | Kimberly-Clark Corporation | 23,331 |
LEADERSHARES EQUITY SKEW ETF |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 13.7% (Continued) | ||||||||
HOUSEHOLD PRODUCTS - 0.3% (Continued) | ||||||||
1,089 | Procter & Gamble Company | $ | 145,294 | |||||
223,382 | ||||||||
INDUSTRIAL REIT - 0.1% | ||||||||
637 | Prologis, Inc. | 74,229 | ||||||
INFRASTRUCTURE REIT - 0.1% | ||||||||
186 | American Tower Corporation | 47,387 | ||||||
146 | Crown Castle International Corporation | 27,603 | ||||||
74,990 | ||||||||
INSTITUTIONAL FINANCIAL SERVICES - 0.5% | ||||||||
693 | Bank of New York Mellon Corporation | 34,567 | ||||||
311 | CME Group, Inc. | 62,819 | ||||||
292 | Goldman Sachs Group, Inc. | 101,747 | ||||||
221 | Intercontinental Exchange, Inc. | 26,014 | ||||||
1,316 | Morgan Stanley | 108,636 | ||||||
302 | State Street Corporation | 25,353 | ||||||
359,136 | ||||||||
INSURANCE - 0.9% | ||||||||
551 | Aflac, Inc. | 29,605 | ||||||
259 | Allstate Corporation | 32,841 | ||||||
741 | American International Group, Inc. | 35,901 | ||||||
1,637 | Berkshire Hathaway, Inc., Class B(a) | 450,094 | ||||||
217 | Marsh & McLennan Companies, Inc. | 29,447 | ||||||
639 | MetLife, Inc. | 40,660 | ||||||
343 | Prudential Financial, Inc. | 34,423 | ||||||
215 | Travelers Companies, Inc. | 33,252 | ||||||
686,223 | ||||||||
INTERNET MEDIA & SERVICES - 0.1% | ||||||||
20 | Booking Holdings, Inc.(a) | 49,322 | ||||||
LEISURE FACILITIES & SERVICES - 0.2% | ||||||||
224 | Marriott International, Inc., Class A(a) | 33,268 | ||||||
381 | McDonald’s Corporation | 89,947 |
LEADERSHARES EQUITY SKEW ETF |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 13.7% (Continued) | ||||||||
LEISURE FACILITIES & SERVICES - 0.2% (Continued) | ||||||||
419 | Starbucks Corporation | $ | 47,971 | |||||
171,186 | ||||||||
MACHINERY - 0.1% | ||||||||
242 | Caterpillar, Inc. | 55,203 | ||||||
63 | Deere & Company | 23,364 | ||||||
137 | Stanley Black & Decker, Inc. | 28,327 | ||||||
106,894 | ||||||||
MEDICAL EQUIPMENT & DEVICES - 0.5% | ||||||||
631 | Abbott Laboratories | 75,770 | ||||||
436 | Baxter International, Inc. | 37,361 | ||||||
246 | Becton Dickinson and Company | 61,207 | ||||||
1,202 | Boston Scientific Corporation(a) | 52,407 | ||||||
175 | Danaher Corporation | 44,440 | ||||||
63 | Illumina, Inc.(a) | 24,749 | ||||||
138 | Stryker Corporation | 36,243 | ||||||
176 | Zimmer Biomet Holdings, Inc. | 31,180 | ||||||
363,357 | ||||||||
OIL & GAS PRODUCERS - 0.9% | ||||||||
1,692 | Chevron Corporation | 174,394 | ||||||
1,211 | ConocoPhillips | 61,931 | ||||||
515 | EOG Resources, Inc. | 37,925 | ||||||
3,737 | Exxon Mobil Corporation | 213,906 | ||||||
1,696 | Kinder Morgan, Inc. | 28,917 | ||||||
572 | Marathon Petroleum Corporation | 31,832 | ||||||
385 | Phillips 66 | 31,150 | ||||||
181 | Pioneer Natural Resources Company | 27,843 | ||||||
359 | Valero Energy Corporation | 26,552 | ||||||
1,079 | Williams Companies, Inc. (The) | 26,284 | ||||||
660,734 | ||||||||
OIL & GAS SERVICES & EQUIPMENT - 0.0%(b) | ||||||||
1,258 | Schlumberger N.V. | 34,029 | ||||||
RETAIL - CONSUMER STAPLES - 0.4% | ||||||||
178 | Costco Wholesale Corporation | 66,232 |
LEADERSHARES EQUITY SKEW ETF |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 13.7% (Continued) | ||||||||
RETAIL - CONSUMER STAPLES - 0.4% (Continued) | ||||||||
143 | Target Corporation | $ | 29,638 | |||||
571 | Walgreens Boots Alliance, Inc. | 30,320 | ||||||
1,175 | Walmart, Inc. | 164,394 | ||||||
290,584 | ||||||||
RETAIL - DISCRETIONARY - 0.3% | ||||||||
256 | Home Depot, Inc. | 82,859 | ||||||
181 | Lowe’s Companies, Inc. | 35,521 | ||||||
305 | Ross Stores, Inc. | 39,937 | ||||||
1,012 | TJX Companies, Inc. | 71,852 | ||||||
230,169 | ||||||||
RETAIL REIT - 0.0% (b) | ||||||||
282 | Simon Property Group, Inc. | 34,331 | ||||||
SEMICONDUCTORS - 0.6% | ||||||||
182 | Analog Devices, Inc. | 27,875 | ||||||
114 | Broadcom, Inc. | 52,007 | ||||||
3,542 | Intel Corporation | 203,771 | ||||||
963 | Micron Technology, Inc.(a) | 82,885 | ||||||
370 | Texas Instruments, Inc. | 66,789 | ||||||
433,327 | ||||||||
SOFTWARE - 0.1% | ||||||||
715 | Oracle Corporation | 54,190 | ||||||
SPECIALTY FINANCE - 0.2% | ||||||||
566 | American Express Company | 86,796 | ||||||
399 | Capital One Financial Corporation | 59,483 | ||||||
267 | Discover Financial Services | 30,438 | ||||||
176,717 | ||||||||
TECHNOLOGY HARDWARE - 0.3% | ||||||||
3,685 | Cisco Systems, Inc. | 187,603 | ||||||
1,064 | HP, Inc. | 36,293 | ||||||
223,896 | ||||||||
TECHNOLOGY SERVICES - 0.7% | ||||||||
195 | Automatic Data Processing, Inc. | 36,463 |
LEADERSHARES EQUITY SKEW ETF |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
April 30, 2021 |
Shares | Fair Value | |||||||
COMMON STOCKS — 13.7% (Continued) | ||||||||
TECHNOLOGY SERVICES - 0.7% (Continued) | ||||||||
551 | Fidelity National Information Services, Inc. | $ | 84,248 | |||||
261 | Global Payments, Inc. | 56,018 | ||||||
785 | International Business Machines Corporation | 111,376 | ||||||
243 | Mastercard, Inc., Class A | 92,841 | ||||||
582 | Visa, Inc., Class A | 135,932 | ||||||
516,878 | ||||||||
TELECOMMUNICATIONS - 0. 5% | ||||||||
6,115 | AT&T, Inc. | 192,072 | ||||||
3,555 | Verizon Communications, Inc. | 205,443 | ||||||
397,515 | ||||||||
TOBACCO & CANNABIS - 0.3% | ||||||||
1,640 | Altria Group, Inc. | 78,310 | ||||||
1,359 | Philip Morris International, Inc. | 129,105 | ||||||
207,415 | ||||||||
TRANSPORTATION & LOGISTICS - 0.3% | ||||||||
315 | CSX Corporation | 31,736 | ||||||
539 | Delta Air Lines, Inc.(a) | 25,290 | ||||||
118 | Norfolk Southern Corporation | 32,950 | ||||||
504 | Southwest Airlines Company(a) | 31,641 | ||||||
300 | Union Pacific Corporation | 66,628 | ||||||
184 | United Parcel Service, Inc., Class B | 37,510 | ||||||
225,755 | ||||||||
TRANSPORTATION EQUIPMENT - 0.0% (b) | ||||||||
295 | PACCAR, Inc. | 26,515 | ||||||
WHOLESALE-CONSUMER STAPLES - 0.1% | ||||||||
479 | Archer-Daniels-Midland Company | 30,239 | ||||||
444 | Sysco Corporation | 37,620 | ||||||
67,859 | ||||||||
TOTAL COMMON STOCKS (Cost $9,190,701) | 10,658,625 |
LEADERSHARES EQUITY SKEW ETF |
SCHEDULE OF INVESTMENTS (Unaudited) (Continued) |
April 30, 2021 |
Shares | Fair Value | |||||||
EXCHANGE-TRADED FUNDS — 84.2% | ||||||||
EQUITY - 84.2% | ||||||||
127,260 | iShares Core MSCI Emerging Markets ETF | $ | 8,331,712 | |||||
258,240 | Schwab Emerging Markets Equity ETF | 8,323,075 | ||||||
187,304 | SPDR Portfolio Emerging Markets ETF | 8,316,298 | ||||||
65,924 | SPDR Portfolio S&P 500 Growth ETF | 3,971,921 | ||||||
182,003 | SPDR S&P 600 Small Cap Growth ETF | 15,907,062 | ||||||
244,646 | SPDR S&P 600 Small CapValue ETF | 20,398,584 | ||||||
65,248,652 | ||||||||
TOTAL EXCHANGE - TRADED FUNDS (Cost $54,790,216) | 65,248,652 | |||||||
TOTAL INVESTMENTS - 97.9% (Cost $63,980,917) | $ | 75,907,277 | ||||||
OTHER ASSETS IN EXCESS OF LIABILITIES - 2.1% | 1,640,012 | |||||||
NET ASSETS - 100.0% | $ | 77,547,289 |
ETF | - Exchange-Traded Fund |
MSCI | - Morgan Stanley Capital International |
NV | - Naamioze Vennootschap |
REIT | - Real Estate Investment Trust |
SPDR | - Standard & Poor’s Depositary Receipt |
(a) | Non-income producing security. |
(b) | Percentage rounds to less than 0.1%. |
See accompanying notes which are an integral part of these financial statements.
LeaderShares® ETF’s |
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) |
April 30, 2021 |
LeaderShares | LeaderShares | |||||||||||||||
LeaderShares® | AlphaFactor® | AlphaFactor® | LeaderShares® | |||||||||||||
Activist Leaders® ETF | Tactical Focused ETF | US Core Equity ETF | Equity Skew ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investment securities: | ||||||||||||||||
Unaffiliated investments, at cost | $ | 47,166,944 | $ | 84,434,044 | $ | 85,191,768 | $ | 63,980,917 | ||||||||
Unaffiliated investments, at fair value | $ | 58,693,571 | $ | 94,935,502 | $ | 90,691,713 | $ | 75,907,277 | ||||||||
Cash | 540,682 | 900,321 | 890,254 | 1,648,218 | ||||||||||||
Receivable for investments sold | 1,528,770 | — | — | — | ||||||||||||
Dividends and interest receivable | 2,258 | 50,314 | 38,936 | 12,371 | ||||||||||||
Receivable for capital stock sold | 22,416 | — | — | 16,368 | ||||||||||||
TOTAL ASSETS | 60,787,697 | 95,886,137 | 91,620,903 | 77,584,234 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payable for investments purchased | 1,047,607 | — | — | — | ||||||||||||
Payable for capital shares redeemed | 87,698 | — | — | — | ||||||||||||
Investment advisory fees payable | 25,490 | 66,189 | 39,536 | 36,945 | ||||||||||||
TOTAL LIABILITIES | 1,160,795 | 66,189 | 39,536 | 36,945 | ||||||||||||
NET ASSETS | $ | 59,626,902 | $ | 95,819,948 | $ | 91,581,367 | $ | 77,547,289 | ||||||||
Net Assets Consist Of: | ||||||||||||||||
Paid in capital | $ | 38,018,279 | $ | 69,354,321 | $ | 77,075,407 | $ | 55,714,127 | ||||||||
Accumulated gains | 21,608,623 | 26,465,627 | 14,505,960 | 21,833,162 | ||||||||||||
NET ASSETS | $ | 59,626,902 | $ | 95,819,948 | $ | 91,581,367 | $ | 77,547,289 | ||||||||
Net Asset Value Per Share: | ||||||||||||||||
Net Assets | $ | 59,626,902 | $ | 95,819,948 | $ | 91,581,367 | $ | 77,547,289 | ||||||||
Shares of beneficial interest outstanding ($0 par value, unlimited shares authorized) | 1,600,000 | 2,825,000 | 2,825,000 | 2,150,000 | ||||||||||||
Net asset value (Net Assets ÷ Shares Outstanding) | $ | 37.27 | $ | 33.92 | $ | 32.42 | $ | 36.07 | ||||||||
The accompanying notes are an integral part of these financial statements.
LeaderShares® ETF’s |
STATEMENTS OF OPERATIONS (Unaudited) |
For the Six Months Ended April 30, 2021 |
LeaderShares® | LeaderShares® | |||||||||||||||
LeaderShares® | AlphaFactor® | AlphaFactor® | LeaderShares® | |||||||||||||
Activist Leaders® ETF | Tactical Focused ETF | US Core Equity ETF | Equity Skew ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends (Less: Foreign Withholding Expense of $3,387 for Activist Leaders ETF) | $ | 219,677 | $ | 968,241 | $ | 453,469 | $ | 533,253 | ||||||||
TOTAL INVESTMENT INCOME | 219,677 | 968,241 | 453,469 | 533,253 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 194,147 | 412,971 | 316,443 | 256,258 | ||||||||||||
TOTAL EXPENSES | 194,147 | 412,971 | 316,443 | 256,258 | ||||||||||||
NET INVESTMENT INCOME | 25,530 | 555,270 | 137,026 | 276,995 | ||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Unaffiliated Investments | 2,401,125 | 1,533,792 | 9,402,660 | 5,563,764 | ||||||||||||
In-kind redemptions | 7,707,052 | 14,101,998 | 9,946,038 | 4,732,985 | ||||||||||||
Options | — | — | — | (333,770 | ) | |||||||||||
Realized gain on investments | 10,108,177 | 15,635,790 | 19,348,698 | 9,962,979 | ||||||||||||
Unrealized appreciation on: | ||||||||||||||||
Unaffiliated Investments | 11,609,561 | 10,770,369 | 2,992,428 | 9,313,584 | ||||||||||||
Change in unrealized appreciation on investments | 11,609,561 | 10,770,369 | 2,992,428 | 9,313,584 | ||||||||||||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS | 21,717,738 | 26,406,159 | 22,341,126 | 19,276,563 | ||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 21,743,268 | $ | 26,961,429 | $ | 22,478,152 | $ | 19,553,558 | ||||||||
The accompanying notes are an integral part of these financial statements.
LeaderShares® Activist Leaders® ETF |
STATEMENT OF CHANGES IN NET ASSETS |
For the Six Months | For the Period | |||||||
Ended | Ended | |||||||
April 30, 2021 | October 31, 2020 * | |||||||
(Unaudited) | ||||||||
FROM OPERATIONS | ||||||||
Net investment income (loss) | $ | 25,530 | $ | (1,173 | ) | |||
Net realized gain on investments | 2,401,125 | 5,217 | ||||||
Net realized gain on in-kind redemptions | 7,707,052 | — | ||||||
Unrealized appreciation (depreciation) on investments | 11,609,561 | (82,934 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 21,743,268 | (78,890 | ) | |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid | (55,755 | ) | — | |||||
Net decrease in net assets resulting from distributions to shareholders | (55,755 | ) | — | |||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 28,295,763 | 42,592,171 | ||||||
Cost of shares redeemed | (32,869,655 | ) | — | |||||
Net increase (decrease) in net assets resulting from shares of beneficial interest | (4,573,892 | ) | 42,592,171 | |||||
TOTAL INCREASE IN NET ASSETS | 17,113,621 | 42,513,281 | ||||||
NET ASSETS | ||||||||
Beginning of Period | 42,513,281 | — | ||||||
End of Period | $ | 59,626,902 | $ | 42,513,281 | ||||
SHARE ACTIVITY | ||||||||
Shares sold | 950,000 | 1,750,000 | ||||||
Shares redeemed | (1,100,000 | ) | — | |||||
Net increase (decrease) in shares of beneficial interest outstanding | (150,000 | ) | 1,750,000 | |||||
* | Fund commenced operation on October 26, 2020. |
The accompanying notes are an integral part of these financial statements.
LeaderShares® AlphaFactor® Tactical Focused ETF |
STATEMENT OF CHANGES IN NET ASSETS |
For the Six Months | For the Period | |||||||
Ended | Ended | |||||||
April 30, 2021 | October 31, 2020 * | |||||||
(Unaudited) | ||||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 555,270 | $ | 21,472 | ||||
Net realized gain on investments | 1,533,792 | — | ||||||
Net realized gain on in-kind redemptions | 14,101,998 | — | ||||||
Unrealized appreciation (depreciation) on investments | 10,770,369 | (268,911 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 26,961,429 | (247,439 | ) | |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid | (248,363 | ) | — | |||||
Net decrease in net assets resulting from distributions to shareholders | (248,363 | ) | — | |||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 100,069,905 | 47,818,400 | ||||||
Cost of shares redeemed | (78,533,984 | ) | — | |||||
Net increase in net assets resulting from shares of beneficial interest | 21,535,921 | 47,818,400 | ||||||
TOTAL INCREASE IN NET ASSETS | 48,248,987 | 47,570,961 | ||||||
NET ASSETS | ||||||||
Beginning of Period | 47,570,961 | — | ||||||
End of Period | $ | 95,819,948 | $ | 47,570,961 | ||||
SHARE ACTIVITY | ||||||||
Shares sold | 3,500,000 | 1,975,000 | ||||||
Shares redeemed | (2,650,000 | ) | — | |||||
Net increase in shares of beneficial interest outstanding | 850,000 | 1,975,000 | ||||||
* | Fund commenced operation on October 26, 2020. |
The accompanying notes are an integral part of these financial statements.
LeaderShares® AlphaFactor® US Core Equity ETF |
STATEMENT OF CHANGES IN NET ASSETS |
For the Six Months | For the Year | |||||||
Ended | Ended | |||||||
April 30, 2021 | October 31, 2020 | |||||||
(Unaudited) | ||||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 137,026 | $ | 529,556 | ||||
Net realized gain (loss) on investments | 9,402,660 | (8,205,280 | ) | |||||
Net realized gain on in-kind redemptions | 9,946,038 | 8,929,306 | ||||||
Unrealized appreciation (depreciation) on investments | 2,992,428 | (57,884 | ) | |||||
Net increase in net assets resulting from operations | 22,478,152 | 1,195,698 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid | (148,050 | ) | (546,464 | ) | ||||
Return of capital | — | (6,256 | ) | |||||
Net decrease in net assets resulting from distributions to shareholders | (148,050 | ) | (552,720 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 78,777,383 | 77,972,584 | ||||||
Cost of shares redeemed | (83,066,601 | ) | (79,486,783 | ) | ||||
Net decrease in net assets resulting from shares of beneficial interest | (4,289,218 | ) | (1,514,199 | ) | ||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | 18,040,884 | (871,221 | ) | |||||
NET ASSETS | ||||||||
Beginning of Period | 73,540,483 | 74,411,704 | ||||||
End of Period | $ | 91,581,367 | $ | 73,540,483 | ||||
SHARE ACTIVITY | ||||||||
Shares sold | 2,650,000 | 3,275,000 | ||||||
Shares redeemed | (2,800,000 | ) | (3,225,000 | ) | ||||
Net increase (decrease) in shares of beneficial interest outstanding | (150,000 | ) | 50,000 | |||||
The accompanying notes are an integral part of these financial statements.
LeaderShares® Equity Skew ETF |
STATEMENT OF CHANGES IN NET ASSETS |
For the Six Months | For the Period | |||||||
Ended | Ended | |||||||
April 30, 2021 | October 31, 2020 * | |||||||
(Unaudited) | ||||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 276,995 | $ | 192,348 | ||||
Net realized gain on investments | 5,229,994 | 2,870,382 | ||||||
Net realized gain on in-kind redemptions | 4,732,985 | 2,533,901 | ||||||
Unrealized appreciation on investments | 9,313,584 | 2,612,776 | ||||||
Net increase in net assets resulting from operations | 19,553,558 | 8,209,407 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid | (3,395,723 | ) | — | |||||
Net decrease in net assets resulting from distributions to shareholders | (3,395,723 | ) | — | |||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 30,888,875 | 86,342,315 | ||||||
Cost of shares redeemed | (23,519,041 | ) | (40,532,102 | ) | ||||
Net increase in net assets resulting from shares of beneficial interest | 7,369,834 | 45,810,213 | ||||||
TOTAL INCREASE IN NET ASSETS | 23,527,669 | 54,019,620 | ||||||
NET ASSETS | ||||||||
Beginning of Period | 54,019,620 | — | ||||||
End of Period | $ | 77,547,289 | $ | 54,019,620 | ||||
SHARE ACTIVITY | ||||||||
Shares sold | 950,000 | 3,425,000 | ||||||
Shares redeemed | (725,000 | ) | (1,500,000 | ) | ||||
Net increase in shares of beneficial interest outstanding | 225,000 | 1,925,000 | ||||||
* | Fund commenced operation on May 11, 2020. |
The accompanying notes are an integral part of these financial statements.
LeaderShares® Activist Leaders® ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout The Period Presented |
Six Months Ended | For the Period | |||||||
April 30, 2021 | Ended | |||||||
(Unaudited) | October 31, 2020 * | |||||||
Net asset value, beginning of period | $ | 24.29 | $ | 25.00 | ||||
Activity from investment operations: | ||||||||
Net investment gain (loss) (1) | 0.02 | (0.00 | ) ** | |||||
Net realized and unrealized gain (loss) on investments | 12.99 | (0.71 | ) | |||||
Total from investment operations | 13.01 | (0.71 | ) | |||||
Less distributions from: | ||||||||
Net investment income | (0.03 | ) | — | |||||
Net realized gains | (0.00 | ) ** | — | |||||
Total distributions | (0.03 | ) | — | |||||
Net asset value, end of period | $ | 37.27 | $ | 24.29 | ||||
Market price, end of period | $ | 37.22 | $ | 24.30 | ||||
Total return (2) | 53.61 | % (4) | (2.84 | )% (4) | ||||
Net assets, at end of period (000s) | $ | 59,627 | $ | 42,513 | ||||
Ratio of expenses to average net assets | 0.75 | % (3) | 0.75 | % (3) | ||||
Ratio of net investment income/(loss) to average net assets | 0.10 | % (3) | (0.75 | )% (3) | ||||
Portfolio Turnover Rate (5) | 27 | % (4) | 3 | % (4) | ||||
* | Fund commenced operation on October 26, 2020. |
** | Represents less than $0.01 per share. |
(1) | Per share amounts calculated using the average shares method, which more appropriately presents the per share data for each period. |
(2) | 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. |
(3) | Annualized |
(4) | Not Annualized |
(5) | Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. (Note 7) |
The accompanying notes are an integral part of these financial statements.
LeaderShares® AlphaFactor® Tactical Focused ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout The Period Presented |
Six Months Ended | For the Period | |||||||
April 30, 2021 | Ended | |||||||
(Unaudited) | October 31, 2020 * | |||||||
Net asset value, beginning of period | $ | 24.09 | $ | 25.00 | ||||
Activity from investment operations: | ||||||||
Net investment gain (1) | 0.20 | 0.03 | ||||||
Net realized and unrealized gain (loss) on investments | 9.72 | (0.94 | ) | |||||
Total from investment operations | 9.92 | (0.91 | ) | |||||
Less distributions from: | ||||||||
Net investment income | (0.09 | ) | — | |||||
Total distributions | (0.09 | ) | — | |||||
Net asset value, end of period | $ | 33.92 | $ | 24.09 | ||||
Market price, end of period | $ | 33.92 | $ | 24.10 | ||||
Total return (2) | 41.24 | % (4) | (3.64 | )% (4) | ||||
Net assets, at end of period (000s) | $ | 95,820 | $ | 47,571 | ||||
Ratio of expenses to average net assets | 0.99 | % (3) | 0.99 | % (3) | ||||
Ratio of net investment income to average net assets | 1.33 | % (3) | 16.95 | % (3) | ||||
Portfolio Turnover Rate (5) | 82 | % (4) | 0 | % (4) | ||||
* | Fund commenced operation on October 26, 2020. |
(1) | Per share amounts calculated using the average shares method, which more appropriately presents the per share data for each period. |
(2) | 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. |
(3) | Annualized |
(4) | Not Annualized |
(5) | Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. (Note 7) |
The accompanying notes are an integral part of these financial statements.
LeaderShares® AlphaFactor® US Core Equity ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout The Years/Periods Presented |
Six Months Ended | For the Year | For the Year | For the Period | |||||||||||||
April 30, 2021 | Ended | Ended | Ended | |||||||||||||
(Unaudited) | October 31, 2020 | October 31, 2019 | October 31, 2018* | |||||||||||||
Net asset value, beginning of year/period | $ | 24.72 | $ | 25.44 | $ | 22.85 | $ | 25.00 | ||||||||
Activity from investment operations: | ||||||||||||||||
Net investment gain (loss) (1) | 0.05 | 0.17 | 0.18 | (0.00 | ) ** | |||||||||||
Net realized and unrealized gain (loss) on investments | 7.70 | (0.71 | ) | 2.58 | (2.15 | ) | ||||||||||
Total from investment operations | 7.75 | (0.54 | ) | 2.76 | (2.15 | ) | ||||||||||
Less distributions from: | ||||||||||||||||
Net investment income | (0.05 | ) | (0.18 | ) | (0.17 | ) | — | |||||||||
Return of capital | — | (0.00 | ) ** | — | — | |||||||||||
Total distributions | (0.05 | ) | (0.18 | ) | (0.17 | ) | — | |||||||||
Net asset value, end of year/period | $ | 32.42 | $ | 24.72 | $ | 25.44 | $ | 22.85 | ||||||||
Market price, end of year/period | $ | 32.41 | $ | 24.72 | $ | 25.45 | $ | 22.86 | ||||||||
Total return (2) | 31.38 | % (4) | (2.09 | )% | 12.16 | % | (8.60 | )% (4) | ||||||||
Net assets, at end of year/period (000s) | $ | 91,581 | $ | 73,540 | $ | 74,412 | $ | 50,849 | ||||||||
Ratio of expenses to average net assets | 0.75 | % (3) | 0.75 | % | 0.75 | % | 0.75 | % (3) | ||||||||
Ratio of net investment income/(loss) to average net assets | 0.32 | % (3) | 0.70 | % | 0.77 | % | (0.01 | )% (3) | ||||||||
Portfolio Turnover Rate (5) | 99 | % (4) | 181 | % | 193 | % | 0 | % (4) | ||||||||
* | Fund commenced operation on October 1, 2018. |
** | Represents less than $0.01 per share. |
(1) | Per share amounts calculated using the average shares method, which more appropriately presents the per share data for each year/period. |
(2) | 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. |
(3) | Annualized |
(4) | Not Annualized |
(5) | Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. (Note 7) |
The accompanying notes are an integral part of these financial statements.
LeaderShares® Equity Skew ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout The Period Presented |
Six Months Ended | For the Period | |||||||
April 30, 2021 | Ended | |||||||
(Unaudited) | October 31, 2020 * | |||||||
Net asset value, beginning of period | $ | 28.06 | $ | 25.00 | ||||
Activity from investment operations: | ||||||||
Net investment gain (1) | 0.14 | 0.09 | ||||||
Net realized and unrealized gain on investments | 9.55 | 2.97 | ||||||
Total from investment operations | 9.69 | 3.06 | ||||||
Less distributions from: | ||||||||
Net investment income | (0.26 | ) | — | |||||
Net realized gains | (1.42 | ) | — | |||||
Total distributions | (1.68 | ) | — | |||||
Net asset value, end of period | $ | 36.07 | $ | 28.06 | ||||
Market price, end of period | $ | 36.03 | $ | 27.83 | ||||
Total return (2) | 35.40 | % (4) | 12.24 | % (4) | ||||
Net assets, at end of period (000s) | $ | 77,547 | $ | 54,020 | ||||
Ratio of expenses to average net assets | 0.75 | % (3) | 0.75 | % (3) | ||||
Ratio of net investment income to average net assets | 0.81 | % (3) | 0.71 | % (3) | ||||
Portfolio Turnover Rate (5) | 35 | % (4) | 57 | % (4) | ||||
* | Fund commenced operation on May 11, 2020. |
(1) | Per share amounts calculated using the average shares method, which more appropriately presents the per share data for each period. |
(2) | 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. |
(3) | Annualized |
(4) | Not Annualized |
(5) | Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. (Note 7) |
The accompanying notes are an integral part of these financial statements.
LeaderShares® ETF’s |
NOTES TO FINANCIAL STATEMENTS (Unaudited) |
April 30, 2021 |
1. | ORGANIZATION |
The LeaderShares® Activist Leaders® ETF Fund (“Activist Leaders ETF”), LeaderShares® AlphaFactor® Tactical Focused ETF Fund (“Tactical Focused ETF”), LeaderShares® AlphaFactor® US Core Equity ETF Fund (“US Core Equity ETF”), LeaderShares ® Equity Skew ETF Fund (“Equity Skew ETF” and collectively with Activist Leaders ETF, Tactical Focused ETF and US Core Equity ETF, the “Funds”) each 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 registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as diversified, open-end management investment companies. Activist Leaders® ETF, Tactical Focused ETF and Equity Skew ETF seek to generate long-term capital growth. US Core Equity ETF seeks to provide investment results that correspond generally, before fees and expenses, to the performance of the AlphaFactor® US Core Equity Index. US Core Equity ETF commenced operations on October 1, 2018. Equity Skew ETF commenced operation May 11, 2020. Activist Leaders® ETF and Tactical Focused ETF commenced operations on October 26, 2020.
2. | SIGNIFICANT ACCOUNTING POLICIES |
The following is a summary of significant accounting policies followed by the Funds in preparation of their 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 Funds are investment companies and accordingly follow the investment company accounting and reporting guidance of the Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 “Financial Services – Investment Companies” including FASB Accounting Standards Update ASU 2013-08.
Securities 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. In the absence of a sale, such securities shall be valued at the mean between the current bid and ask prices on the day of valuation. Options contracts listed on a securities exchange or board of trade (not including Index Options contracts) for which market quotations are readily available shall be valued at the last quoted sales price or, in the absence of a sale, at the mean between the current bid and ask prices on the valuation date. Index Options listed on a securities exchange or board of trade for which market quotations are readily available shall be valued at the mean between the current bid and ask prices on the valuation date. The Funds 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 Funds’ holding. Short-term debt obligations having 60 days or less remaining until maturity, at time of purchase may be valued at amortized cost (which approximates fair value). Investments in open-end investment companies are valued at net asset value.
Valuation of Underlying Funds – The Funds may invest in portfolios of open-end or closed-end investment companies (the “Underlying Funds”). The Underlying Funds value securities in their portfolios for which
LeaderShares® ETF’s |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
April 30, 2021 |
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 Underlying Funds.
Open-end 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 premium on shares of any closed-end investment company purchased by the Funds will not change.
The Funds 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) advisor. 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 to, as needed, 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.
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 advisor, the prices or values available do not represent the fair value of the instrument; factors which may cause the advisor to make such a judgment include, but are not limited to, the following: only a bid price or an ask price is available; the spread between bid and ask 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; and (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 a Fund’s calculation of its net asset value. Specifically, interests in commodity pools or managed futures pools are valued on a daily basis by reference to the closing market prices of each futures contract or other asset held by a pool, as adjusted for pool expenses. Restricted or illiquid securities, such as private investments or non-traded securities are valued via inputs from the advisor 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 advisor 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;
LeaderShares® ETF’s |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
April 30, 2021 |
(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.
The Funds utilize various methods to measure the fair value of all of their 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.
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.
LeaderShares® ETF’s |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
April 30, 2021 |
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 April 30, 2021 for the Funds’ investments measured at fair value:
LeaderShares® Activist Leaders® ETF | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 58,693,571 | $ | — | $ | — | $ | 58,693,571 | ||||||||
Total | $ | 58,693,571 | $ | — | $ | — | $ | 58,693,571 | ||||||||
LeaderShares® AlphaFactor® Tactical Focused ETF | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 94,935,502 | $ | — | $ | — | $ | 94,935,502 | ||||||||
Total | $ | 94,935,502 | $ | — | $ | — | $ | 94,935,502 | ||||||||
LeaderShares® AlphaFactor® US Core Equity ETF | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 90,691,713 | $ | — | $ | — | $ | 90,691,713 | ||||||||
Total | $ | 90,691,713 | $ | — | $ | — | $ | 90,691,713 | ||||||||
LeaderShares® Equity Skew ETF | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 10,658,625 | $ | — | $ | — | $ | 10,658,625 | ||||||||
Exchange Traded Funds | 65,248,652 | — | — | 65,248,652 | ||||||||||||
Total | $ | 75,907,277 | — | $ | — | $ | 75,907,277 |
The Funds did not hold any Level 3 securities during the period.
* | See Portfolio of Investments for industry classification. |
Impact of Derivatives on the Statement of Operations – The following is a summary of the location of derivative investments on the Statements of Operations for the period ended April 30, 2021:
Derivative Investment Type | Location of Gain/Loss on Derivative | ||
Option Contracts | Net Realized Loss from Security Transactions: Option Contracts | ||
Net Change in Unrealized Depreciation on: Option Contracts |
The following is a summary of the realized loss and changes in unrealized depreciation on derivative investments recognized in the Statements of Operations categorized by primary risk exposure for the period ended April 30, 2021:
LeaderShares® Equity Skew ETF | ||||||||
Realized loss on derivatives recognized in the Statement of Operations | ||||||||
Total for the | ||||||||
Derivative Investment Type | Equity Risk | Period Ended April 30, 2021 | ||||||
Option Contracts | $ | 333,770 | $ | (333,770 | ) | |||
Changes in unrealized depreciation on derivatives recognized in the Statement of Operations | ||||||||
Total for the | ||||||||
Derivative Investment Type | Equity Risk | Period Ended April 30, 2021 | ||||||
Option Contracts | $ | 319,839 | $ | 319,839 |
LeaderShares® ETF’s |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
April 30, 2021 |
The notional value of the derivative instruments outstanding as of April 30, 2021 as disclosed in the Portfolio of Investments and the amounts realized and changes in unrealized gains and losses on derivative instruments during the period as disclosed above and within the Statements of Operations serve as indicators of the volume of derivative activity for each Fund.
Security Transactions and Related Income – Security transactions are accounted for on the trade date. 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. Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates.
Dividends and Distributions to Shareholders – For the LeaderShares® AlphaFactor® US Core Equity ETF Fund, dividends from net investment income, if any, are declared and paid quarterly. For The LeaderShares® Activist Leader ® ETF, LeaderShares ® AlphaFactor® Tactical Focused ETF, and the LeaderShares® US Equity Skew ETF Funds, dividends from net investment income, if any, are declared and paid annually. Distributable net realized capital gains, if any, are declared and distributed annually. Dividends from net investment income and distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either temporary (e.g., deferred losses) 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. Quarterly distributions in excess of ordinary taxable income are treated as returns of capital. Dividends and distributions to shareholders are recorded on the ex-dividend date.
Option Transactions – The Funds are 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 a Fund writes put and call options, an amount equal to the premium received is included in the statement of assets and liability 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 a 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 Funds have no control over whether the option will be exercised and, as a result, retain the market risk of an unfavorable change in the price of the security underlying the written option.
Put options are purchased to hedge against a decline in the value of securities held in the Funds’ portfolio. If such a decline occurs, the put options will permit the Funds 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 Funds upon exercise of the option, and, unless the price of the underlying security rises or declines sufficiently, the option may expire worthless to the Funds. 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 Funds, the benefits realized by the Funds as a result of such favorable movement will be reduced by the amount of the premium paid for
LeaderShares® ETF’s |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
April 30, 2021 |
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 Funds since these options are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded options, guarantees against a possible default.
Federal Income Taxes – It is the Funds’ policy to qualify as a regulated investment company by complying with the provisions of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of its taxable income and net realized gains to shareholders. Therefore, no federal income tax provision has been recorded.
The Funds recognize 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 Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for the open tax years ended October 31, 2018 to October 31, 2020 for the LeaderShares® AlphaFactor® US Core Equity ETF Fund, or positions expected to be taken in the Funds’ October 31, 2021 year-end tax returns. The Funds identify their major tax jurisdictions as U.S. Federal, Ohio and foreign jurisdictions where the Funds make significant investments; however the Funds are not aware of any tax positions for which it is reasonably expected that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period, the Funds did not incur any interest or penalties.
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 Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnities. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, the risk of loss due to these warranties and indemnities appears to be remote.
3. | INVESTMENT TRANSACTIONS |
For the six months ended April 30, 2021, cost of purchases and proceeds from sales of portfolio securities (excluding in-kind transactions and short-term investments), as well as cost of purchases and proceeds from sales of portfolio securities for in-kind transactions amounted to:
Purchases | Sales | Purchases In-Kind | Sales In-Kind | |||||||||||||
LeaderShares® Activist Leaders® ETF | $ | 14,835,248 | $ | 13,854,931 | $ | 28,460,592 | $ | 33,935,383 | ||||||||
LeaderShares® AlphaFactor® Tactical Focused ETF | 72,747,328 | 72,143,660 | 98,600,738 | 77,370,680 | ||||||||||||
LeaderShares® AlphaFactor® US Core Equity ETF | 91,435,155 | 91,989,291 | 77,835,930 | 82,270,678 | ||||||||||||
LeaderShares® Equity Skew ETF | 23,993,259 | 27,665,402 | 31,485,952 | 23,367,319 |
LeaderShares® ETF’s |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
April 30, 2021 |
4. | INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PARTIES |
Redwood Investment Management, LLC serves as the Funds’ Investment Advisor (the “Advisor”). Pursuant to investment advisory agreements with the Funds, the Advisor, under the oversight of the Board, directs the daily operations of the Funds and supervises the performance of administrative and professional services provided by others. As compensation for its services and the related expenses borne by the Advisor, the LeaderShares® Activist Leaders ® ETF Fund, LeaderShares® AlphaFactor® Tactical Focused ETF Fund, LeaderShares® AlphaFactor® US Core Equity ETF Fund, and LeaderShares® Equity Skew ETF Fund pay the Advisor a unitary management fee, computed and accrued daily and paid monthly, at an annual rate of 0.75%, 0.99%, 0.75%, and 0.75% respectively of each Funds’ average daily net assets. For the period ended April 30, 2021 the funds incurred the following advisory fees:
Investment Advisory Fees | ||||
LeaderShares® Activist Leaders ETF | $ | 194,147 | ||
LeaderShares® AlphaFactor® Tactical Focused ETF | 412,971 | |||
LeaderShares® AlphaFactor® US Core Equity ETF | 316,443 | |||
LeaderShares® Equity Skew ETF | 256,258 |
The Advisor’s unitary management fee is designed to pay the Funds’ expenses and to compensate the Advisor for providing services for the Funds. Out of the unitary management fee, the Advisor pays substantially all expenses of the Funds, including the costs of transfer agency, custody, fund administration, legal, audit and other services and Independent Trustees’ fees, but not payments under the Funds’ 12b-1 plan, brokerage fees and commissions, taxes, borrowing costs (such as dividend expense on securities sold short and interest), fees and expenses of other investment companies in which the Funds may invest, and extraordinary or non-recurring expenses (including litigation to which the Trust or the Funds may be a party and indemnification of the Trustees and officers with respect thereto). The Advisor, and not the Funds’ shareholders, would benefit from any reduction in fees paid for third-party services, including reductions based on increases in net assets.
The Funds have adopted a distribution and service plan (“Plan”) pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, the Funds are authorized to pay distribution fees to the distributor and other firms that provide distribution and shareholder services (“Service Providers”). If a Service Provider provides these services, the Funds 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 Funds, 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 Funds. Northern Lights Distributors, LLC, the Funds’ distributor, its affiliates, and the Funds’ Advisor or its affiliates may, at their own expense and out of their own legitimate profits, provide additional cash payments to financial intermediaries who sell shares of the Funds, including affiliates of the Advisor.
Gemini Fund Services, LLC (“GFS”) – GFS, an affiliate of the Distributor, provides administration and fund accounting services to the Funds. Pursuant to a separate servicing agreement with GFS, the advisor on behalf of the Funds pay GFS customary fees for providing administration and fund accounting services to
LeaderShares® ETF’s |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
April 30, 2021 |
the Fund. Certain officers of the Trust are also officers of GFS, and are not paid any fees directly by the Funds for serving in such capacities.
Northern Lights Compliance Services, LLC (“NLCS”) – NLCS, an affiliate of GFS 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 Funds. Under the terms of such agreement, NLCS receives customary fees from the Trust. The Chief Compliance Officer of the Trust is also an officer of NLCS, and is not paid any fees directly by the Funds for serving in such capacity.
Blu Giant, LLC (“Blu Giant”) – Blu Giant, an affiliate of GFS and the Distributor, provides EDGAR conversion and filing services as well as print management services for the Funds on an ad-hoc basis. For the provision of these services, Blu Giant receives customary fees from the advisor on behalf of the Funds.
5. | AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION – TAX BASIS |
The identified cost of investments in securities owned by the Funds for federal income tax purposes and its respective gross unrealized appreciation and depreciation at April 30, 2021, was as follows:
Gross | Gross | |||||||||||||||
Unrealized | Unrealized | Net Unrealized | ||||||||||||||
Tax Cost | Appreciation | Depreciation | Appreciation | |||||||||||||
LeaderShares® Activist Leaders® ETF | $ | 47,167,318 | $ | 11,892,806 | $ | (366,553 | ) | $ | 11,526,253 | |||||||
LeaderShares® AlphaFactor® Tactical Focused ETF | 84,434,044 | 10,876,721 | (375,263 | ) | 10,501,458 | |||||||||||
LeaderShares® AlphaFactor® US Core Equity ETF | 85,191,768 | 6,280,293 | (780,348 | ) | 5,499,945 | |||||||||||
LeaderShares® Equity Skew ETF | 63,979,951 | 11,954,559 | (27,233 | ) | 11,927,326 |
6. | DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL |
The tax character of fund distributions paid for the year ended October 31, 2020, and October 31, 2019 was as follows:
For the period ended October 31, 2020: | ||||||||||||||||||||
Ordinary | Long-Term | Return | Tax Exempt | |||||||||||||||||
Portfolio | Income | Capital Gains | of Capital | Income | Total | |||||||||||||||
LeaderShares® AlphaFactor® US Core Equity ETF | $ | 546,464 | $ | — | $ | 6,256 | $ | — | $ | 552,720 | ||||||||||
For the period ended October 31, 2019: | ||||||||||||||||||||
Ordinary | Long-Term | Return | Tax Exempt | |||||||||||||||||
Portfolio | Income | Capital Gains | of Capital | Income | Total | |||||||||||||||
LeaderShares® AlphaFactor® US Core Equity ETF | $ | 447,090 | $ | — | $ | — | $ | — | $ | 447,090 |
LeaderShares® ETF’s |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
April 30, 2021 |
As of October 31, 2020, 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 | ||||||||||||||||||||||
Portfolio | Income | Capital Gains | Late Year Loss | Forwards | Differences | (Depreciation) | Earnings/(Deficits) | |||||||||||||||||||||
LeaderShares® Activist Leaders® ETF | $ | 5,591 | $ | — | $ | (1,173 | ) | $ | — | $ | — | $ | (83,308 | ) | $ | (78,890 | ) | |||||||||||
LeaderShares® AlphaFactor® Tactical Focused ETF | 21,472 | — | — | — | — | (268,911 | ) | (247,439 | ) | |||||||||||||||||||
LeaderShares® AlphaFactor® US Core Equity ETF | — | — | — | (10,331,659 | ) | — | 2,507,517 | (7,824,142 | ) | |||||||||||||||||||
LeaderShares® Equity Skew ETF | 3,061,585 | — | — | — | — | 2,613,742 | 5,675,327 |
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 the tax deferral of losses on wash sale, adjustments for real estate investment trusts and C-Corporation return of capital distributions.
Late year losses incurred after December 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The LeaderShares® Activist Leaders® ETF incurred and elected to defer such late year losses of $1,173.
At October 31, 2020, the LeaderShares® AlphaFactor® US Core Equity ETF had capital loss carry forwards for federal income tax purposes available to offset future capital gains, as follows:
Non-Expiring | ||||||||||||||
Short-Term | Long-Term | Total | CLCF Utilized | |||||||||||
$ | 10,030,996 | $ | 300,663 | $ | 10,331,659 | $ | — |
Permanent book and tax differences, primarily attributable to the book/tax basis treatment of realized gain (loss) on in-kind redemptions, distributions in excess, and adjustments for prior year tax returns resulted in reclassifications for the Funds for the year ended October 31, 2020 as follows:
Paid in | Accumulated | |||||||
Portfolio | Capital | Earnings (Losses) | ||||||
LeaderShares® AlphaFactor® US Core Equity ETF | $ | 8,911,199 | $ | (8,911,199 | ) | |||
LeaderShares® Equity Skew ETF | 2,534,080 | (2,534,080 | ) |
7. | CAPITAL SHARE TRANSACTIONS |
Shares are not individually redeemable and may be redeemed by the Funds at NAV only in large blocks known as “Creation Units.” Shares are created and redeemed by the Funds only in Creation Unit size aggregations of 25,000 shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a Depository Trust Company 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 Funds 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
LeaderShares® ETF’s |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
April 30, 2021 |
Authorized Participant or as a result of other market circumstances. In addition, the Funds may impose transaction fees on purchases and redemptions of Funds shares to cover the custodial and other costs incurred by the Funds in effecting trades. A fixed fee payable to the custodian is 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 Funds 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 Funds are disclosed in the Statements of Changes in Net Assets. For the six months ended April 30, 2021, Activist Leaders ETF received $13,200 in fixed fees and $0 in variable fees, Tactical Focused ETF received $10,200 in fixed fees and $0 in variable fees, US Core Equity ETF received $10,800 in fixed fees and $32 in variable fees and Equity Skew ETF received $10,200 in fixed fees and $0 in variable fees, respectively.
Investors who use the services of a broker, or other such intermediary may be charged a fee for such services. The Transaction Fees for the Fund are listed in the table below:
Fee for In-Kind and | Minimum Additional Variable | Maximum Additional Variable |
Cash Purchases | Charge for Cash Purchases* | Charge for Cash Purchases* |
$600 | 0.20% | 2.00% |
* | As a percentage of the amount invested. |
8. | PRINCIPAL INVESTMENT RISKS |
The Funds’ investments in securities, financial instruments and derivatives expose it to various risks, certain of which are discussed below. Each Fund’s prospectus and statement of additional information include a more full listing of risks associated with each Fund’s investments. The Risks associated with a Funds’ investments include, but are not limited to:
Activist Leaders ETF: activist risk, active trading risk, authorized participant concentration risk, cybersecurity risk, derivatives risk, equity risk, ETF structure risks, fluctuation of net asset value risk, gap risk, information technology sector risk, management risk, market capitalization risk, market risk, market events risk, new fund risk, quantitative investing risk, rules-based strategy risk, sector risk, swap risk, and volatility risk.
Tactical Focused ETF: active trading risk, authorized participant concentration risk, cash positions risk, cybersecurity risk, derivatives risk, equity risk, ETF structure risks, fluctuation of net asset value risk, focus risk, gap risk, investment companies and ETFs Risk, management risk, market capitalization risk, market risk, market events risk, money market instrument risk, new fund risks, quantitative investing risk, rules -based strategy risk, sector risk, swap risk, tactical overlay strategy risk, U.S. Government securities risk, and volatility risk.
US Core Equity ETF: active trading risk, authorized participant concentration risk, calculation methodology risk, concentration risk, consumer discretionary sector risk, derivatives risk, ETF structure
LeaderShares® ETF’s |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
April 30, 2021 |
risks, equity risk, financial sector risk, fluctuation of net asset value risk, gap risk, index tracking error risk, industry concentration risk, industrials sector risk, information technology sector risk, management risk, market capitalization risk, market risk, market events risk, new fund risk, passive investment risk, portfolio turnover risk, retail sector risk, rules-based strategy risk, and volatility risk.
Equity Skew ETF: active trading risk, authorized participant concentration risk, cybersecurity risk, equity risk, emerging markets risk, ETF structure risks, fluctuation of net asset value risk, gap risk, geographic and sector risk, management risk, investment companies and ETFs Risk, foreign (Non-US) investments risk, market capitalization risk, market risk, market events risk, new fund risks, and quantitative investing risk.
ETF Structure Risks. The Funds are structured as ETF’s 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 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.
Equity Risk. Equity securities are susceptible to general market fluctuations and volatile increases and decreases in value as market confidence in and perceptions of their issuers change. Factors that may influence the price of equity securities include developments affecting a specific company or industry, or the changing economic, political or market conditions.
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 Advisor 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.
Unlike conventional ETFs, Activist Leaders ETF, Tactical Focused ETF and Equity Skew ETF are not index funds. The Funds are actively managed and do 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 the NAV.
Index Tracking Error Risk. As with all index funds, the performance of the Fund and the Index may differ from each other for a variety of reasons. For example, the Fund incurs operating expenses and
LeaderShares® ETF’s |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
April 30, 2021 |
portfolio transaction costs not incurred by the Index. In addition, the Fund may not be fully invested in the securities of the Index at all times, may deviate from the relative weightings of the Index, or may hold securities not included in the Index. Tracking error risk may be heightened during times of market volatility or other unusual market conditions.
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 or other markets, volatility in the securities markets, adverse investor sentiment affect the securities markets and political events affect the securities markets. 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.
8. | UNDERLYING INVESTMENT IN OTHER INVESTMENT COMPANIES |
The LeaderShares® Equity Skew ETF Fund currently seeks to achieve its investment objective by investing a portion of its assets in SPDR S&P 600 Small CapValue ETF (the “Security”). The Fund may redeem its investments from the Security at any time if the Advisor determines that it is in the best interest of the Fund and its shareholders to do so.
LeaderShares® ETF’s |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) |
April 30, 2021 |
The performance of the LeaderShares® Equity Skew ETF Fund will be directly affected by the performance of the Security. The annual report for the Security, along with the report of the independent registered public accounting firm is included in the Security’s N-CSR’s available at “www.sec.gov”. As of April 30, 2021, the percentage of the The LeaderShares® Equity Skew ETF Fund’s net assets invested in the SPDR S&P 600 Small CapValue ETF was 26.3%.
10. | SUBSEQUENT EVENTS |
Subsequent events after the date of the Statements 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.
LeaderShares® ETF’s |
EXPENSE EXAMPLES (Unaudited) |
April 30, 2021 |
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; (2) ongoing costs, including a unitary management fee 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 November 1, 2020 through April 30, 2021.
Actual Expenses
The “Actual” expenses line in the table below provides information about actual account values and actual expenses. You may use the information below, 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 table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The “Hypothetical” line in 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 balances or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of 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 paid on purchases and sales of Fund shares. Therefore, 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.
Hypothetical | ||||||||||||||
Actual* | (5% return before expenses) | |||||||||||||
Fund’s | Beginning | Ending | Ending | |||||||||||
Annualized | Account | Account | Expenses | Account | Expenses | |||||||||
Expense | Value | Value | Paid During | Value | Paid During | |||||||||
Ratio | 11/1/20 | 4/30/21 | Period | 4/30/21 | Period | |||||||||
LeaderShares® Activist Leaders® ETF | 0.75% | $1,000.00 | $1,536.10 | $4.72 | $1,021.08 | $3.76 | ||||||||
LeaderShares® AlphaFactor® Tactical Focused ETF | 0.99% | $1,000.00 | $1,412.40 | $5.92 | $1,019.89 | $4.96 | ||||||||
LeaderShares® AlphaFactor® US Core Equity ETF | 0.75% | $1,000.00 | $1,313.80 | $4.30 | $1,021.08 | $3.76 | ||||||||
LeaderShares® Equity Skew ETF | 0.75% | $1,000.00 | $1,354.00 | $4.38 | $1,021.08 | $3.76 |
* | Expenses are equal to the average account value over the period, multiplied by the Funds’ annualized expense ratio, multiplied by the number of days in the period (181) divided by the number of days in the fiscal year (365). |
** | Annualized. |
LeaderShares® ETF’s |
SUPPLEMENTAL INFORMATION (Unaudited) |
April 30, 2021 |
Approval of Advisory Agreement
LeaderShares AlphaFactor US Core Equity ETF
At a meeting held on December 8-9, 2020 (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 reapproval of the investment advisory agreement (the “Advisory Agreement”) between Redwood Investment Management LLC (“Redwood” or the “Adviser”) and the Trust, on behalf of the LeaderShares AlphaFactor US Core Equity ETF (“LSAF” or the “Fund”).
In connection with the Board’s consideration of the 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 Fund by Redwood; (ii) a description of the Adviser’s investment management personnel; (iii) an overview of the Adviser’s operations and financial condition; (iv) a description of the Adviser’s brokerage practices (including any soft dollar arrangements); (v) a comparison of the Fund’s advisory fees and overall expenses with those of comparable mutual funds; (vi) the anticipated level of profitability from the Adviser’s fund-related operations; (vii) the 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 Redwood. 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 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.
Matters considered by the Board in connection with its approval of the Advisory Agreement included, among others, the following:
Nature, Extent and Quality of Services. The Board reviewed materials provided by Redwood related to the Advisory Agreement with the Trust with respect to the Fund, including the 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 summary of the financial condition of Redwood; a written report containing Redwood’s performance commentary for the prior quarterly period; Redwood’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 Redwood’s compliance program; information regarding Redwood’s compliance and regulatory history; and an independent report prepared by Broadridge, an independent third party data provider, analyzing the performance record, fees and expenses of the Fund as compared to other ETFs with similar investment strategies.
LeaderShares® ETF’s |
SUPPLEMENTAL INFORMATION (Unaudited) (Continued) |
April 30, 2021 |
In reaching its conclusions with respect to the nature, extent and quality of services to be provided by Redwood under the Advisory Agreement, the Board considered Redwood’s asset management, risk management, operations, and compliance experience. The Board considered that the investment strategies used by the Fund employ quantitative and tactical investment elements and require a significant level of sophistication to execute. The Board noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding Redwood’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act which included evaluating the regulatory compliance systems of Redwood and procedures reasonably designed to assure compliance with federal securities laws. The Board also considered Redwood’s policies and procedures in the areas of business continuity and with respect to information systems security and the Trust CCO’s review and evaluation of the same, which found them to be satisfactory. The Board also considered the operation and robustness of Redwood’s compliance program, and that Redwood had added personnel to its compliance and operations functions. The Board noted that Redwood appeared to have adequate capacity to operate both its investment and compliance program, including the implementation of trading procedures reasonably designed to mitigate conflicts among accounts, that Redwood had adopted cybersecurity and business continuity policies and procedures, and that Redwood’s risk management and associated policies appeared to be operating effectively to identify and monitor risks. The Board noted that Redwood had not reported any shareholder complaints or litigation, no significant operational issues, and no material compliance violations. 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 Fund.
In considering the nature, extent, and quality of the services provided by Redwood, the Board also took into account its knowledge, acquired through discussions and reports during the preceding year and in past years, of Redwood’s management and the quality of the performance of Redwood’s duties.
The Board concluded that Redwood had sufficient quality and depth of personnel, resources, investment methodologies and compliance policies and procedures to perform its duties under the Advisory Agreement and that the nature, overall quality and extent of the management services provided by Redwood to the Fund was satisfactory and reliable.
Performance. In considering the Fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the Fund’s performance results, as well as its previous deliberations with respect to the Fund. Among other data, the Board considered the Fund’s performance as compared to a broad-based index and against a group of peer funds (the “Peer Group”) provided by Broadridge, an independent third-party data provided. 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 the data may vary depending on the end date selected and that the results of the performance comparisons may vary depending on the selection of the peer group.
The Board considered, among other performance data, the Fund’s performance for the one-year and since inception periods ended September 30, 2020 as compared to its Peer Group and the Fund’s Morningstar category (Large Blend). The Board considered that the Fund had performed at the median of the Peer Group and had underperformed the median of the Morningstar category and its benchmark for the one-year period and since inception periods but had delivered positive performance returns for both periods.
LeaderShares® ETF’s |
SUPPLEMENTAL INFORMATION (Unaudited) (Continued) |
April 30, 2021 |
The Board also took into account management’s discussion of the Fund’s performance, including the factors that contributed to any underperformance, as well as the quarterly written report containing Redwood’s performance commentary. The Board noted the Fund’s risk adjusted returns and how the Fund was managed with respect to volatility. The Board also noted that that Redwood was actively monitoring the performance of the Fund. The Board also considered more recent performance information provided at this Meeting. The Board concluded that the overall performance of the Fund was satisfactory or, in the case of underperformance, was being appropriately monitored and/or addressed.
Fees and Expenses. As to the costs of the services provided by Redwood, among other expense data, the Board considered a comparison prepared by Broadridge of the Fund’s advisory fee and operating expenses compared to the Fund’s Peer Group and Morningstar category.
The Board noted, among other data, that the unitary fee was above the median of the contractual management fee and net total expenses of the Fund’s Peer Group. The Board took into account Redwood’s discussion of the Fund’s expenses and the Fund’s unitary fee structure, and also noted that the Fund’s gross expenses were within the range of the gross expenses of its Peer Group.
In considering the level of the advisory fee paid with respect to the Fund, the Board took into account the cost of other accounts managed by Redwood that used a similar strategy, if any, noting that differences were attributable to the differences in the management of these different kinds of accounts.
Based on the factors above, the Board concluded that the advisory fee of the Fund was not unreasonable.
Profitability. The Board considered Redwood’s profitability and whether these profits were reasonable in light of the services provided to the Fund. The Board reviewed profitability analyses prepared by Redwood based on the Fund’s asset levels and considered the total profits of Redwood from its relationship with the Fund and the other funds in the Trust in the aggregate. The Board concluded that Redwood’s profitability from its relationship with the Fund, after taking into account a reasonable allocation of costs, was not excessive.
Economies of Scale. The Board considered whether Redwood would realize economies of scale with respect to its management of the Fund as the Fund grew and whether fee levels reflected these economies. The Board noted that although the Fund’s current advisory fee does not include breakpoints, the Fund’s future shareholders should benefit from the Fund’s growth. The Board considered the profitability analysis included in the Board Materials and noted that while expenses of managing the Fund as a percentage of assets under management were expected to decrease as the Fund’s assets continued to grow, at current asset levels, economies of scale have not yet been reached. The Board noted that it would revisit whether economies of scale exist in the future once the Fund had achieved sufficient scale.
Other Benefits. The Board also considered the character and amount of other direct and incidental benefits to be received by Redwood from its association with the Fund. The Board considered that Redwood uses the Fund as components of model portfolios it builds for its clients and that expanding its offering of mutual funds will result in a greater number and type of model portfolios offered by Redwood. Redwood did not anticipate receiving any other direct, indirect or ancillary material “fall-out” benefits from its relationship with the Fund.
LeaderShares® ETF’s |
SUPPLEMENTAL INFORMATION (Unaudited) (Continued) |
April 30, 2021 |
Conclusion. The Board, having requested and received such information from Redwood as it believed reasonably necessary to evaluate the terms of the Advisory Agreement, and having been advised by independent counsel that the Board had appropriately considered and weighed all relevant factors, determined that approval of the Advisory Agreement for an additional one-year term was in the best interests of the Fund and its shareholders.
In considering the Advisory Agreement’s renewal, 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.
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 1-402-895-1600 |
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. |
Proxy Voting Policy
Information regarding how the Funds vote proxies relating to portfolio securities for the 12 month period ended June 30th as well as a description of the policies and procedures that the Funds used to determine how to vote proxies is available without charge, upon request, by calling 1-480-757-4277 or by referring to the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.
Portfolio Holdings
Each Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Form N-PORT is 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 1-480-757-4277.
Investment Advisor |
Redwood Investment Management, LLC |
4110 N Scottsdale Rd, Suite 125 |
Scottsdale, AZ 85251 |
Administrator |
Gemini Fund Services, LLC |
4221 North 203rd Street, Suite 100 |
Elkhorn, NE 68022-3474 |
LEADERSHARES-SA21 |
Item 2. Code of Ethics. Not applicable.
Item 3. Audit Committee Financial Expert. Not applicable.
Item 4. Principal Accountant Fees and Services. Not applicable.
Item 5. Audit Committee of Listed Companies. Not applicable to open-end investment companies.
Item 6. Investments. Schedule of investments in securities of unaffiliated issuers is included under Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers. Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders. None
Item 11. Controls and Procedures.
(a) Based on an evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of filing date of this Form N-CSR, the principal executive officer and principal financial officer of the Registrant have concluded that the disclosure controls and procedures of the Registrant are reasonably designed to ensure that the information required in filings on Form N-CSR is recorded, processed, summarized, and reported by the filing date, including that information required to be disclosed is accumulated and communicated to the Registrant’s management, including the Registrant’s principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no significant changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. Not applicable to open-end investment companies.
Item 13. Exhibits.
(a)(1) Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Two Roads Shared Trust
By James Colantino | /s/James Colantino |
President/Principal Executive Officer, | |
Date: June 30, 2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following person on behalf of the registrant and in the capacities and on the date indicated.
By James Colantino | /s/James Colantino |
President/Principal Executive Officer | |
Date: June 30, 2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following person on behalf of the registrant and in the capacities and on the date indicated.
By Laura Szalyga | /s/ Laura Szalyga |
Treasurer/Principal Financial Officer | |
Date: June 30, 2021 |