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 811-23066
Northern Lights Fund Trust IV
(Exact name of registrant as specified in charter)
225 Pictoria Drive , Suite 450,Cincinnati, Ohio 45246
(Address of principal executive offices) (Zip code)
Wendy Wang, Gemini Fund Services, LLC.
80 Arkay Drive, Hauppauge, NY 11788
(Name and address of agent for service)
Registrant's telephone number, including area code: 631-470-2600
Date of fiscal year end: 11/30
Date of reporting period: 11/30/20
Item 1. Reports to Stockholders.
Inspire Global Hope ETF (BLES)
Inspire Small/Mid Cap Impact ETF (ISMD)
Inspire Corporate Bond Impact ETF (IBD)
Inspire 100 ETF (BIBL)
Inspire International ESG ETF (WWJD)
Inspire Tactical Balanced ESG ETF (RISN)
Annual Report
November 30, 2020
1-877-658-9473
www.inspireinvesting.com
INSPIRE ETF ANNUAL REPORT
SHAREHOLDER LETTER (unaudited) |
Dear Shareholders:
We are honored and privileged to present you with the Annual Report for the Inspire Investing suite of Exchange Traded Funds (ETFs) as of November 30, 2020.
The past year has been very unusual, unique, and unprecedented in so many ways. We are exceedingly grateful to look back at 2020 and see the protection and provision that God gave us during a global pandemic, social unrest, and a very contentious political season. We could not do what we do without you and we sincerely appreciate the trust you have placed in Inspire by investing in one or more of our ETFs.
BLES – Inspire Global Hope ETF
Even with the dramatic decline of the stock market in March of 2020, as the global economy was locked down due to the Covid-19 pandemic, BLES had a positive, double digit return over the past twelve months ended 11-30-2020. BLES has a target weight of 50% US Large Cap stocks, 40% International Developed Markets stocks and 10% Emerging Markets stocks. The US exposure was responsible for most of the positive returns, but the International and Emerging Markets recovered well from the global market meltdown too. For the twelve months ended November 30, 2020, BLES was up 10.57% on a market price basis and 12.35% on the NAV. Since inception (2-27-2017) BLES has an annualized return of 9.16% on a market price basis and 9.28% on the NAV.
ISMD – Inspire Small/Mid Cap Impact ETF
After the bounce back rally that started in April from the stock market drop in March, the small cap and mid cap markets rallied along with the large cap market. For the twelve months ended November 30, 2020, ISMD returned 2.12% on a market price basis and 2.12% on the NAV, but both trailed the index return of 4.78% by 266 basis points. We attribute this underperformance due to the fund holding only 300 positions of the index’s 500 positions, as well as to the volatility in the market during the start of the global pandemic. Since inception (2-27-2017), ISMD has an annualized return of 4.82% on a market price basis and 4.81% on the NAV.
IBD – Inspire Corporate Bond Impact ETF
The interest rate cuts in 2020 by the Federal Reserve due to the emergency stimulus needed during the economic lockdown and global pandemic have had a positive effect on the corporate bond market, manifesting in positive total returns for IBD over the past year. As the economy attempts to fully recover from the Covid-19 induced recession, we believe interest rates will remain at the current low rates for the next 12 to 18 months and could remain unchanged throughout 2022. For the twelve months ended November 30, 2020, IBD returned 5.39% on a market price basis and 5.16% on the NAV. The underperformance of the NAV and the market price to the index return of 9.65% over the past 12 months is due to several bonds in the fund being downgraded to below investment grade and removed while the downgraded bonds remained in the index for two more months before removal from the index. Since inception (7-10-2017), IBD has an annualized return of 4.02% on a market price basis and 3.89% on the NAV.
1
BIBL – Inspire 100 ETF
BIBL has approximately 100 US Large Cap positions that are capitalization weighted. BIBL was designed to give advisors and investors a Biblically Responsible alternative to the popular market cap weighted funds that are so prevalent in the marketplace (i.e. SPY or VOO). We are pleased that BIBL has performed as expected and participated in the strong US Large cap market performance in 2020 with a strong, double digit return. For the twelve months ended November 30, 2020, BIBL returned 23.52% on a market price basis and 23.50% on the NAV. Since inception (10-30-2017) BIBL has an annualized return of 14.06% on a market price basis and 14.04% on the NAV.
WWJD – Inspire International ESG ETF
WWJD reached its 1st anniversary on 9-30-2020 and holds approximately 150 stocks with an 80% exposure to international developed markets and 20% to emerging markets. Although the international and emerging markets have not recovered as much as the US large cap markets since the global market meltdown in March, the performance has been positive. We still believe the global economy will continue to recover as the pandemic comes to an end, as all pandemics do, and the international and emerging markets should play a more positive role in portfolios in 2021. For the twelve months ended November 30, 2020, WWJD returned 11.26% on a market price basis and 12.29% on the NAV. Since inception (9-30-2019), WWJD has an annualized return of 16.00% on a market price basis and 16.14% on the NAV.
RISN – Inspire Tactical Balanced ESG
The Lord Blessed us as we were able to launch our 6th ETF on 7-15-2020. RISN holds an 80% exposure to US large cap stocks and 20% to US fixed income during normal market conditions. The fund can be adjusted to a neutral allocation of 50% US large cap stocks/50% US fixed income or a conservative allocation of 20% US large cap stocks/80% US fixed income when deemed appropriate by the portfolio managers. Although the Fund has only been in existence for less than five months, the performance has been positive so far. Since inception, (7-15-2020), RISN returned 4.37% on a market price basis and 5.18% on the NAV.
Closing Comments
2020 has been one of the most challenging years we have experienced in quite some time as I am sure it has been for you and your family as well. With everything that has made 2020 so unusual and chaotic we are thankful to God our Father for His provision and protection. We pray the Lord has protected and provided for you and your family and will keep you safe and healthy in the coming year. We are also grateful to be part of the mission of making a positive impact in the world through our ETFs alongside you, our brothers and sisters in Christ and fellow shareholders.
The overall stock market has had a good year despite the market meltdown, the pandemic, a recession, and a tumultuous election season. We hope that we can return to a more normal year in 2021 as Covid-19 vaccines should start to be distributed and the economy can continue to recover, but God is still Sovereign, and our trust is in Him, not in vaccines, politicians or the markets.
Thank you again for being shareholders, but more importantly thank you for being co-workers with us in making a positive impact in the world by inspiring transformation for God’s Glory.
May the Grace and Peace of Jesus Christ our Lord be with you in 2021.
Sincerely,
Darrell Jayroe, CIO
Inspire Investing
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Inspire, the Adviser, provides the indexes for the Inspire ETFs to track. The indexes use software that analyzes publicly available data relating to the primary business activities, products and services, philanthropy, legal activities, policies, and practices when assigning Inspire Impact Scores to a company. The securities with the highest Inspire Impact Scores are included in the Indexes and are equally weighted. As an ETF may not fully replicate its Index, it is subject to the risk that investment management strategy may not produce the intended results. There is no guarantee that the Funds will achieve their objective, generate positive returns, or avoid losses.
ETF shares are not redeemable with the issuing fund other than in large Creation Unit aggregations. Instead, investors must buy or sell ETF Shares in the secondary market with the assistance of a stockbroker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling. Each Fund may focus its investments in securities of a particular industry to the extent its Index does. This may cause the Fund’s net asset value to fluctuate more than that of a fund that does not focus in a particular industry.
The Funds are not actively managed and the Adviser will not sell shares of an equity security due to current or projected underperformance of a security, industry or sector, unless that security is removed from the Index or the selling of shares of that security is otherwise required upon a rebalancing of the Index as addressed in the Index methodology. Tracking error may occur because of imperfect correlation between the Funds’ holdings of portfolio securities and those in the Index. The Funds’ use of a representative sampling approach, if used, could result in it holding a smaller number of securities than are in the Index. To the extent the assets in the Funds are smaller, these risks will be greater.
Before investing, consider the Funds’ investment objectives, risks, charges and expenses. To obtain a prospectus which contains this and other information, call 877.658.9473, or visit http://www.inspireinvesting.com. Read it carefully. The Inspire ETFs are distributed by Foreside Distributors, LLC.
Inspire and Foreside Distributors, LLC are not affiliated.
3
Inspire Global Hope ETF |
PORTFOLIO REVIEW (Unaudited) |
November 30, 2020 |
The Fund’s performance figures* for the periods ended November 30, 2020, as compared to its benchmarks:
Annualized | |||
Annualized | Since Inception** - | ||
One Year | Three Year | November 30, 2020 | |
Inspire Global Hope ETF - NAV | 12.35% | 7.42% | 9.28% |
Inspire Global Hope ETF - Market Price | 10.57% | 7.37% | 9.16% |
Inspire Global Hope Large Cap Equal Weight Index *** | 10.51% | 7.62% | 9.51% |
S&P Global 1200 Total Return Index **** | 14.38% | 9.76% | 11.95% |
* | The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an 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 a shareholder would pay on Fund distributions, if any, or the redemption of the Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by visiting www.inspireinvesting.com or by calling 1-877-658-9473. |
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. Beginning November 2, 2020, market price returns are calculated using the closing price and account for distributions from the Fund. Prior to November 2, 2020, market price returns were calculated using the midpoint price and accounted for distributions from the Fund. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. The Fund’s total annual operating expenses (gross) are 0.52% per the March 30, 2020 prospectus.
** | As of the commencement of operations on February 27, 2017. |
*** | Inspire Global Hope Large Cap Equal Weight Index (BLESI) tracks the stock performance of 400 of the most inspiring large cap companies from around the globe, as determined by the adviser’s revolutionary Inspire Impact Score4 methodology which measures a company’s positive impact on the world. Under normal circumstances the index will be comprised of 50% US large cap companies, 40% international developed large cap companies and 10% emerging market large cap companies. Inspire defines “large cap” as a market capitalization of $5B or greater. The index is equally weighted, rebalanced quarterly and calculated on a gross total return basis in United States Dollars. Investors cannot invest directly in an index. |
**** | The S&P Global 1200 Total Return Index provides efficient exposure to the global equity market. Capturing approximately 70% of global market capitalization, it is constructed as a composite of 7 headline indices, many of which are accepted leaders in their regions. These include the S&P 500® (US), S&P Europe 350, S&P TOPIX 150 (Japan), S&P/TSX 60 (Canada), S&P/ASX All Australian 50, S&P Asia 50 and S&P Latin America 40. Investors cannot invest directly in an index. |
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities and therefore does not reflect deductions for fees or expenses. In comparison, the Fund’s performance is negatively impacted by these deductions. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income.
4
Inspire Global Hope ETF |
PORTFOLIO REVIEW (Unaudited)(Continued) |
November 30, 2020 |
Comparison of the Change in Value of a $10,000 Investment
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Real Estate | 7.1 | % | ||
Oil, Gas & Coal | 6.5 | % | ||
Banking | 6.2 | % | ||
Chemicals | 5.8 | % | ||
Transportation & Logistics | 5.2 | % | ||
Medical Equipment & Devices | 4.8 | % | ||
Metals & Mining | 4.4 | % | ||
Semiconductors | 4.4 | % | ||
Electric Utilities | 4.2 | % | ||
Retail - Discretionary | 3.8 | % | ||
Money Market Fund | 3.1 | % | ||
Other Sectors | 46.4 | % | ||
Liabilities in Excess of Other Assets | (1.9 | )% | ||
100.0 | % | |||
Please refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Fund’s holdings.
5
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO REVIEW (Unaudited) |
November 30, 2020 |
The Fund’s performance figures* for the periods ended November 30, 2020, as compared to its benchmarks:
Annualized | |||
Annualized | Since Inception** - | ||
One Year | Three Year | November 30, 2020 | |
Inspire Small/Mid Cap Impact ETF - NAV | 2.12% | 3.46% | 4.81% |
Inspire Small/Mid Cap Impact ETF - Market Price | 2.12% | 3.47% | 4.82% |
Inspire Small/Mid Cap Impact Equal Weight Index *** | 4.78% | 4.63% | 5.98% |
S&P SmallCap 600 Equal Weight Total Return Index **** | 9.26% | 4.46% | 5.99% |
* | The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total returns indicated above are calculated using the traded Net Asset Value on November 30, 2020. The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions, if any, or the redemption of the Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by visiting www.inspireinvesting.com or by calling 1-877-658-9473. |
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. Beginning November 2, 2020, market price returns are calculated using the closing price and account for distributions from the Fund. Prior to November 2, 2020, market price returns were calculated using the midpoint price and accounted for distributions from the Fund. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. The Fund’s adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund until at least March 31, 2021 to ensure that total annual fund operating expenses after fee waiver and/or reimbursement (exclusive of any front-end or contingent deferred loads, taxes, brokerage fees and commissions, borrowing costs (such as interest and dividend expense on securities sold short), acquired fund fees and expenses, fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses), or extraordinary expenses such as litigation) will not exceed 0.60% of average daily net assets. The fee waiver and expense reimbursements are subject to possible recoupment from the Fund by the adviser in future years (within the three years after the fees have been waived or reimbursed), if such recoupment can be achieved within the lesser of the foregoing expense limits or those in place at the time of recapture. This agreement may be terminated only by the Trust’s Board of Trustees on 60 days’ written notice to the Fund’s adviser. The Fund’s total annual operating expenses (gross) are 0.64% per the March 30, 2020 prospectus.
** | As of the commencement of operations on February 27, 2017. |
*** | Inspire Small/Mid Cap Impact Equal Weight Index (ISMDI) tracks the stock performance of 500 of the most inspiring small and mid cap companies in the U.S., as determined by the adviser’s revolutionary Inspire Impact Score4 methodology which measures a company’s positive impact on the world. Under normal circumstances the index will be comprised of 50% U.S. mid cap companies with market cap between $2B-3.5B, and 50% U.S. small cap companies with market cap between $1B-2B. The adviser believes that companies in this “smid cap” capitalization range have the potential to deliver above average growth. The index is equally weighted, rebalanced quarterly and calculated on a gross total return basis in United States Dollars. Investors cannot invest directly in an index. |
**** | The S&P SmallCap 600 Equal Weight Total Return Index (EWI) is the equal-weight version of the S&P SmallCap 600. The index has the same constituents as the capitalization weighted S&P SmallCap 600, but each company in the S&P SmallCap 600 EWI is allocated a fixed weight. Investors cannot invest directly in an index. |
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities and therefore does not reflect deductions for fees or expenses. In comparison, the Fund’s performance is negatively impacted by these deductions. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income.
6
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO REVIEW (Unaudited)(Continued) |
November 30, 2020 |
Comparison of the Change in Value of a $10,000 Investment
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Banking | 9.2 | % | ||
Real Estate Investment Trusts | 8.2 | % | ||
Software | 4.7 | % | ||
Retail - Discretionary | 4.4 | % | ||
Chemicals | 3.8 | % | ||
Medical Equipment & Devices | 3.7 | % | ||
Commercial Support Services | 3.3 | % | ||
Technology Hardware | 3.2 | % | ||
Machinery | 3.0 | % | ||
Biotechnology & Pharmaceuticals | 2.8 | % | ||
Money Market Fund | 15.3 | % | ||
Other Sectors | 53.2 | % | ||
Liabilities in Excess of Other Assets | (14.8 | )% | ||
100.0 | % | |||
Please refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Fund’s holdings.
7
Inspire Corporate Bond Impact ETF |
PORTFOLIO REVIEW (Unaudited) |
November 30, 2020 |
The Fund’s performance figures* for the periods ended November 30, 2020, as compared to its benchmarks:
Annualized | |||
Annualized | Since Inception** - | ||
One Year | Three Year | November 30, 2020 | |
Inspire Corporate Bond Impact ETF - NAV | 5.16% | 4.28% | 3.89% |
Inspire Corporate Bond Impact ETF - Market Price | 5.39% | 4.24% | 4.02% |
Inspire Corporate Bond Impact Equal Weight Index *** | 9.65% | 6.46% | 6.01% |
Bloomberg Barclays U.S. Intermediate Credit Total Return Index **** | 7.00% | 5.38% | 5.02% |
* | The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an 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 a shareholder would pay on Fund distributions, if any, or the redemption of the Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by visiting www.inspireinvesting.com or by calling 1-877-658-9473. |
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. Beginning November 2, 2020, market price returns are calculated using the closing price and account for distributions from the Fund. Prior to November 2, 2020, market price returns were calculated using the midpoint price and accounted for distributions from the Fund. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. The Fund’s total annual operating expenses (gross) are 0.50% per the March 30, 2020 prospectus.
** | As of the commencement of operations on July 10, 2017. |
*** | Inspire Corporate Bond Impact Equal Weight Index (INSP BOND) is comprised of 250 investment grade, intermediate term corporate bonds issued by some of the most inspiring large cap “blue chip” companies in the United States, as determined by Inspire’s revolutionary Inspire Impact Score methodology which measures a company’s positive impact on the world. The adviser defines “large cap” as a market capitalization of $5B or greater and “investment grade” as BBB-/Baa3 or higher. The index is equally weighted, rebalanced quarterly and calculated on a total return basis in US Dollars. Investors cannot invest directly in an index. |
**** | The Bloomberg Barclays U.S. Intermediate Credit Total Return Index (LUICTRUU) measures the investment grade, fixed-rate, taxable corporate bond market whose maturity ranges between 1 to 9.9999 years. It includes USD denominated securities publicly issued by US and non-US industrial, utility and financial issuers. Investors cannot invest directly in an index. |
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities and therefore does not reflect deductions for fees or expenses. In comparison, the Fund’s performance is negatively impacted by these deductions. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income.
8
Inspire Corporate Bond Impact ETF |
PORTFOLIO REVIEW (Unaudited)(Continued) |
November 30, 2020 |
Comparison of the Change in Value of a $10,000 Investment
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Real Estate Investment Trusts | 23.1 | % | ||
Oil & Gas Producers | 10.7 | % | ||
Retail - Discretionary | 9.3 | % | ||
Transportation & Logistics | 7.1 | % | ||
Oil & Gas Services & Equipment | 4.8 | % | ||
Electrical Equipment | 4.6 | % | ||
Semiconductors | 4.4 | % | ||
Electric Utilities | 3.9 | % | ||
Wholesale - Consumer Staples | 3.6 | % | ||
Food | 3.5 | % | ||
Other Sectors | 21.2 | % | ||
Other Assets Less Liabilities | 3.8 | % | ||
100.0 | % | |||
Please refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Fund’s holdings.
9
Inspire 100 ETF |
PORTFOLIO REVIEW (Unaudited) |
November 30, 2020 |
The Fund’s performance figures* for the periods ended November 30, 2020, as compared to its benchmarks:
Annualized | |||
Annualized | Since Inception** - | ||
One Year | Three Year | November 30, 2020 | |
Inspire 100 ETF - NAV | 23.50% | 13.43% | 14.04% |
Inspire 100 ETF - Market Price | 23.52% | 13.43% | 14.06% |
Inspire 100 Index *** | 25.31% | 14.66% | 15.24% |
S&P 500 Total Return Index **** | 17.46% | 13.17% | 13.93% |
* | The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an 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 a shareholder would pay on Fund distributions, if any, or the redemption of the Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by visiting www.inspireinvesting.com or by calling 1-877-658-9473. |
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. Beginning November 2, 2020, market price returns are calculated using the closing price and account for distributions from the Funds. Prior to November 2, 2020, market price returns were calculated using the midpoint price and accounted for distributions from the Fund. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. The Fund’s adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund until at least March 31, 2021 to ensure that total annual fund operating expenses after fee waiver and/or reimbursement (exclusive of any front-end or contingent deferred loads, taxes, brokerage fees and commissions, borrowing costs (such as interest and dividend expense on securities sold short), acquired fund fees and expenses, fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses), or extraordinary expenses such as litigation) will not exceed 0.35% of average daily net assets. This fee waiver and expense reimbursement is subject to possible recoupment from the Fund if such recoupment does not cause the Fund’s expense ratio (after the repayment is taken into account) to exceed both: (i) the Fund’s expense cap in place at the time such expenses were waived, and (ii) the Fund’s current expense cap at the time of recoupment. This agreement may be terminated only by the Trust’s Board of Trustees on 60 days’ written notice to the Fund’s adviser. The Fund’s total annual operating expenses (gross) are 0.57% per the March 30, 2020 prospectus.
** | As of the commencement of operations on October 30, 2017. |
*** | The Inspire 100 Index (INSP100) is a rules based, passive index which tracks the stock performance of the one-hundred highest Inspire Impact Scoring companies in the United States with market capitalizations above $20B. The index is market-cap weighted, rebalanced annually and calculated on a total return basis in U.S. Dollars. Investors cannot invest directly in an index. |
**** | The S&P 500 Total Return Index is an unmanaged market capitalization-weighted index which is comprised of 500 of the largest U.S. domiciled companies and includes the reinvestment of all dividends. Investors cannot invest directly in an index or benchmark. |
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities and therefore does not reflect deductions for fees or expenses. In comparison, a Fund’s performance is negatively impacted by these deductions. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income.
10
Inspire 100 ETF |
PORTFOLIO REVIEW (Unaudited)(Continued) |
November 30, 2020 |
Comparison of the Change in Value of a $10,000 Investment
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Semiconductors | 11.9 | % | ||
Real Estate Investment Trusts | 10.8 | % | ||
Electric Utilities | 7.7 | % | ||
Diversified Industrials | 7.1 | % | ||
Technology Services | 5.8 | % | ||
Transportation & Logistics | 5.8 | % | ||
Biotechnology & Pharmaceuticals | 5.5 | % | ||
Medical Equipment & Devices | 5.2 | % | ||
Retail - Consumer Staples | 4.4 | % | ||
Retail - Discretionary | 3.8 | % | ||
Money Market Fund | 1.1 | % | ||
Other Sectors | 30.9 | % | ||
Other Assets Less Liabilities | 0.0 | % ^ | ||
100.0 | % | |||
^ | Amount less than 0.05% |
Please refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Fund’s holdings.
11
Inspire International ESG ETF |
PORTFOLIO REVIEW (Unaudited) |
November 30, 2020 |
The Fund’s performance figures* for the periods ended November 30, 2020, as compared to its benchmarks
Since Inception** - | ||
One Year | November 30, 2020 | |
Inspire International ESG ETF - NAV | 12.29% | 16.14% |
Inspire International ESG ETF - Market Price | 11.26% | 16.00% |
Inspire Global Hope Ex-US Index **** | 8.48% | 12.62% |
S&P International 700 Total Return Index ***** | 9.61% | 12.34% |
* | The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an 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 a shareholder would pay on Fund distributions, if any, or the redemption of the Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by visiting www.inspireinvesting.com or by calling 1-877-658-9473. |
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. Beginning November 2, 2020, market price returns are calculated using the closing price and account for distributions from the Fund. Prior to November 2, 2020, market price returns were calculated using the midpoint price and accounted for distributions from the Fund. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. The Fund’s total annual operating expenses (gross) are 0.80% per the March 30, 2020 prospectus.
** | As of the commencement of operations on September 30, 2019. |
**** | The Inspire Global Hope Ex-US Index (IGHXUSG) intends to track the price movements of a portfolio of 150 of the most inspiring, biblically aligned large cap companies outside of the United States. The index is comprised of 80% international developed large cap companies and 20% emerging markets large cap companies. The adviser defines “large cap” as a market capitalization of $5B USD or greater. The index is equally weighted, rebalanced quarterly and calculated on a gross total return basis in USD. Investors cannot invest directly in an index. |
***** | The S&P International 700 Total Return Index measures the non-U.S. component of the global equity market through an index that is designed to be highly liquid and efficient to replicate. The index covers all regions included in the S&P Global 1200 except for the U.S., which is represented by the S&P 500. Investors cannot invest directly in an index. |
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities and therefore does not reflect deductions for fees or expenses. In comparison, a Fund’s performance is negatively impacted by these deductions. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income.
12
Inspire International ESG ETF |
PORTFOLIO REVIEW (Unaudited)(Continued) |
November 30, 2020 |
Comparison of the Change in Value of a $10,000 Investment
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Banking | 12.8 | % | ||
Metals & Mining | 7.7 | % | ||
Chemicals | 7.6 | % | ||
Transportation & Logistics | 6.3 | % | ||
Real Estate Investment Trusts | 4.4 | % | ||
Insurance | 4.2 | % | ||
Medical Equipment & Devices | 4.1 | % | ||
Oil & Gas Producers | 3.7 | % | ||
Electrical Equipment | 3.6 | % | ||
Automotive | 3.6 | % | ||
Money Market Fund | 2.3 | % | ||
Other Sectors | 40.8 | % | ||
Liabilities in Excess of Other Assets | (1.1 | )% | ||
100.0 | % | |||
Please refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Fund’s holdings.
13
Inspire Tactical Balanced ESG ETF |
PORTFOLIO REVIEW (Unaudited) |
November 30, 2020 |
The Fund’s performance figures* for the period ended November 30, 2020, as compared to its benchmarks:
Since Inception** - | |
November 30, 2020 | |
Inspire Tactical Balanced ESG ETF - NAV | 5.18% |
Inspire Tactical Balanced ESG ETF - Market Price | 4.37% |
S&P Target Risk Moderate Index *** | 5.59% |
* | The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an 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 a shareholder would pay on Fund distributions, if any, or the redemption of the Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by visiting www.inspireinvesting.com or by calling 1-877-658-9473. |
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. Beginning November 2, 2020, market price returns are calculated using the closing price and account for distributions from the Fund. Prior to November 2, 2020, market price returns were calculated using the midpoint price and accounted for distributions from the Fund. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. The Fund’s total annual operating expenses (gross) are estimated to be 0.84% for the first full year of operations per the July 3, 2020 prospectus.
** | As of the commencement of operations on July 15, 2020. |
*** | The S&P Target Risk Moderate Index is designed to measure the performance of moderate stock-bond allocations to fixed income while seeking to increase opportunities for higher returns through equities. Investors cannot invest directly in an index. |
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities and therefore does not reflect deductions for fees or expenses. In comparison, a Fund’s performance is negatively impacted by these deductions. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income.
14
Inspire Tactical Balanced ESG ETF |
PORTFOLIO REVIEW (Unaudited)(Continued) |
November 30, 2020 |
Comparison of the Change in Value of a $10,000 Investment
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Exchange Traded Fund | ||||
Fixed Income | 19.6 | % | ||
Common Stock | ||||
Semiconductors | 9.7 | % | ||
Real Estate Investment Trusts | 9.0 | % | ||
Electric Utilities | 6.3 | % | ||
Diversified Industrials | 5.5 | % | ||
Technology Services | 4.7 | % | ||
Transportation & Logistics | 4.4 | % | ||
Biotechnology & Pharmaceuticals | 4.4 | % | ||
Medical Equipment & Devices | 4.1 | % | ||
Retail - Consumer Staples | 3.5 | % | ||
Retail - Discretionary | 3.1 | % | ||
Other Sectors | 24.6 | % | ||
Other Assets Less Liabilities | 1.1 | % | ||
100.0 | % | |||
Please refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Fund’s holdings.
15
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS |
November 30, 2020 |
Shares | Value | |||||||
COMMON STOCKS - 98.8% | ||||||||
APPAREL & TEXTILE PRODUCTS - 0.6% | ||||||||
5,059 | Cie Financiere Richemont SA | $ | 421,798 | |||||
1,500 | Swatch Group AG | 371,479 | ||||||
793,277 | ||||||||
ASSET MANAGEMENT - 1.3% | ||||||||
16,924 | Franklin Resources, Inc. ^ | 372,159 | ||||||
3,750 | Groupe Bruxelles Lambert SA | 366,396 | ||||||
238,290 | Melrose Industries PLC | 488,329 | ||||||
375 | Partners Group Holding AG | 403,872 | ||||||
1,630,756 | ||||||||
AUTOMOTIVE - 1.7% | ||||||||
4,050 | Aptiv PLC | 480,735 | ||||||
9,075 | BorgWarner, Inc.^ | 352,564 | ||||||
3,070 | Cie Generale des Etablissements Michelin | 383,576 | ||||||
12,600 | Nokian Renkaat OYJ | 444,025 | ||||||
10,800 | Valeo SA | 420,125 | ||||||
2,081,025 | ||||||||
BANKING - 6.2% | ||||||||
65,048 | Bank Hapoalim BM * | 426,509 | ||||||
78,143 | Bank Leumi Le-Israel BM | 439,310 | ||||||
70,350 | Commerzbank AG * | 438,436 | ||||||
6,900 | Commonwealth Bank of Australia | 402,013 | ||||||
38,387 | Credit Agricole SA | 444,216 | ||||||
25,927 | Danske Bank A/S | 428,540 | ||||||
204,577 | Investec PLC | 506,912 | ||||||
84,150 | Itau Unibanco Holding SA | 448,392 | ||||||
6,838 | KBC Group NV | 477,690 | ||||||
3,928 | Macquarie Group Ltd. | 401,359 | ||||||
7,539 | mBank SA * | 304,537 | ||||||
454,425 | Metropolitan Bank & Trust Co. | 453,196 | ||||||
27,949 | National Australia Bank Ltd. | 471,402 | ||||||
148,823 | Natixis SA | 459,297 | ||||||
62,615 | Nedbank Group Ltd. | 495,620 | ||||||
34,216 | People’s United Financial, Inc. | 424,278 | ||||||
21,720 | Raiffeisen Bank International AG * | 417,262 | ||||||
7,438,969 | ||||||||
BIOTECHNOLOGY & PHARMACEUTICAL - 1.3% | ||||||||
2,881 | Alexion Pharmaceuticals, Inc. * | 351,799 | ||||||
3,937 | Incyte Corp. * | 332,834 | ||||||
599 | Regeneron Pharmaceuticals, Inc. * | 309,102 | ||||||
1,875 | Seagen, Inc. * | 319,331 | ||||||
1,283 | Vertex Pharmaceuticals, Inc. * | 292,203 | ||||||
1,605,269 | ||||||||
CHEMICALS - 5.8% | ||||||||
2,100 | Air Liquide SA | 345,780 | ||||||
1,876,411 | AKR Corporindo Tbk PT | 386,711 | ||||||
3,375 | Akzo Nobel NV | 359,551 | ||||||
3,150 | Arkema SA | 368,212 | ||||||
See accompanying notes to financial statements.
16
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
CHEMICALS (continued) - 5.8% | ||||||||
2,850 | Avery Dennison Corp. | $ | 425,619 | |||||
5,325 | Brenntag AG | 408,047 | ||||||
10,950 | CF Industries Holdings, Inc. | 408,435 | ||||||
4,275 | Croda International PLC | 339,929 | ||||||
4,425 | Eastman Chemical Co. | 430,995 | ||||||
75 | Givaudan SA | 306,860 | ||||||
96,975 | ICL Group Ltd. | 460,675 | ||||||
9,150 | Imerys SA | 376,516 | ||||||
2,694 | International Flavors & Fragrances, Inc. ^ | 301,997 | ||||||
11,250 | Johnson Matthey PLC | 334,030 | ||||||
52,707 | K+S AG | 476,266 | ||||||
4,800 | LyondellBasell Industries NV | 408,480 | ||||||
18,525 | Mosaic Co. | 406,809 | ||||||
2,850 | PPG Industries, Inc. | 418,295 | ||||||
6,963,207 | ||||||||
COMMERCIAL SUPPORT SERVICES - 2.5% | ||||||||
15,125 | Bureau Veritas SA | 391,523 | ||||||
1,050 | Cintas Corp. | 373,065 | ||||||
7,350 | Edenred | 421,404 | ||||||
140,775 | G4S PLC | 415,351 | ||||||
4,125 | Intertek Group PLC | 304,101 | ||||||
6,750 | Randstad Holding NV | 419,867 | ||||||
3,675 | Republic Services, Inc. | 355,446 | ||||||
3,000 | Waste Management, Inc. | 357,390 | ||||||
3,038,147 | ||||||||
CONSTRUCTION MATERIALS - 1.7% | ||||||||
18,450 | ACC Ltd. | 424,788 | ||||||
15,000 | James Hardie Industries PLC - ADR | 436,031 | ||||||
7,425 | LafargeHolcim Ltd. | 390,893 | ||||||
1,571 | Martin Marietta Materials, Inc. | 417,305 | ||||||
2,700 | Vulcan Materials Co. | 377,055 | ||||||
2,046,072 | ||||||||
CONSUMER SERVICES - 0.2% | ||||||||
343,275 | Cogna Educacao | 304,643 | ||||||
CONTAINERS & PACKAGING - 1.6% | ||||||||
31,125 | Amcor Ltd. - ADR | 349,063 | ||||||
44,276 | Brambles Ltd. | 357,568 | ||||||
8,625 | International Paper Co. | 426,765 | ||||||
9,150 | Sealed Air Corp. | 412,299 | ||||||
10,275 | Westrock Co. | 433,708 | ||||||
1,979,403 | ||||||||
DIVERSIFIED INDUSTRIALS - 1.9% | ||||||||
14,458 | Alfa Laval AB | 365,773 | ||||||
3,150 | Dover Corp. | 384,395 | ||||||
5,325 | Emerson Electric Co. | 409,067 | ||||||
2,100 | Honeywell International, Inc. | 428,232 | ||||||
1,800 | Illinois Tool Works, Inc. | 379,962 | ||||||
See accompanying notes to financial statements.
17
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
DIVERSIFIED INDUSTRIALS (continued) - 1.9% | ||||||||
7,500 | Pentair PLC | $ | 388,650 | |||||
2,356,079 | ||||||||
ELECTRIC UTILITIES - 4.2% | ||||||||
351,300 | Aboitiz Equity Ventures, Inc. | 308,337 | ||||||
19,050 | AES Corp. ^ | 389,382 | ||||||
33,863 | AGL Energy Ltd. | 336,851 | ||||||
6,900 | Avangrid, Inc. | 321,126 | ||||||
17,925 | CenterPoint Energy, Inc. ^ | 415,681 | ||||||
181,725 | Cia Energetica de Minas Gerais | 426,128 | ||||||
37,639 | Enel SpA | 376,849 | ||||||
3,504 | Entergy Corp. | 381,410 | ||||||
12,269 | FirstEnergy Corp. | 325,865 | ||||||
293,400 | NTPC Ltd. | 375,188 | ||||||
104,020 | Origin Energy Ltd. | 397,032 | ||||||
4,606 | Pinnacle West Capital Corp. | 377,001 | ||||||
12,924 | PPL Corp. | 367,300 | ||||||
3,600 | WEC Energy Group, Inc. | 341,820 | ||||||
5,139,970 | ||||||||
ELECTRICAL EQUIPMENT - 2.5% | ||||||||
13,425 | ABB Ltd. | 355,459 | ||||||
4,138 | Allegion PLC | 471,898 | ||||||
3,525 | AMETEK, Inc. | 417,818 | ||||||
8,400 | Johnson Controls International PLC | 386,736 | ||||||
3,900 | Kone OYJ | 328,056 | ||||||
11,775 | Prysmian SpA | 386,359 | ||||||
823 | Roper Technologies, Inc. | 351,421 | ||||||
1,275 | Schindler Holding AG | 349,276 | ||||||
3,047,023 | ||||||||
ENGINEERING & CONSTRUCTION - 1.6% | ||||||||
16,903 | Boskalis Westminster | 391,245 | ||||||
39,905 | Fluor Corp. ^ | 689,159 | ||||||
3,825 | Jacobs Engineering Group, Inc. | 412,488 | ||||||
4,030 | Vinci SA | 412,169 | ||||||
1,905,061 | ||||||||
FOOD - 1.4% | ||||||||
13,521 | Associated British Foods PLC | 380,881 | ||||||
3,127 | J M Smucker Co. ^ | 366,484 | ||||||
1,800 | McCormick & Co., Inc. | 336,564 | ||||||
35,175 | Orkla ASA | 338,382 | ||||||
278,250 | Sime Darby Plantation Bhd | 334,665 | ||||||
1,756,976 | ||||||||
FOREST & PAPER PRODUCTS - 0.3% | ||||||||
11,097 | UPM-Kymmene OYJ | 366,635 | ||||||
GAS & WATER UTILITIES - 0.6% | ||||||||
39,600 | Cia de Saneamento Basico do Estado de Sao Paulo | 330,187 | ||||||
14,544 | NiSource Inc | 351,965 | ||||||
682,152 | ||||||||
See accompanying notes to financial statements.
18
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
HEALTH CARE FACILITIES & SERVICES - 1.9% | ||||||||
3,594 | AmerisourceBergen Corp. | $ | 370,577 | |||||
6,160 | Centene Corp. * | 379,764 | ||||||
4,125 | DaVita, Inc. * | 453,131 | ||||||
2,925 | HCA Healthcare, Inc. | 439,072 | ||||||
5,601 | Henry Schein, Inc. * ^ | 360,200 | ||||||
6,900 | Ramsay Health Care Ltd. | 320,563 | ||||||
2,323,307 | ||||||||
HOME & OFFICE PRODUCTS - 0.3% | ||||||||
8,175 | Leggett & Platt, Inc. | 352,343 | ||||||
HOME CONSTRUCTION - 1.6% | ||||||||
4,725 | DR Horton, Inc. | 352,013 | ||||||
600 | Geberit AG | 362,532 | ||||||
4,425 | Lennar Corp. | 335,681 | ||||||
3,573 | Mohawk Industries, Inc. * | 449,591 | ||||||
10,940 | Persimmon PLC | 387,921 | ||||||
1,887,738 | ||||||||
INDUSTRIAL SUPPORT SERVICES - 1.4% | ||||||||
7,650 | Fastenal Co. | 378,293 | ||||||
3,525 | Ferguson PLC | 396,438 | ||||||
28,050 | Rexel SA | 379,993 | ||||||
2,100 | United Rentals, Inc. * | 476,658 | ||||||
1,631,382 | ||||||||
INSTITUTIONAL FINANCIAL SERVICES - 0.6% | ||||||||
3,525 | Intercontinental Exchange, Inc. | 371,923 | ||||||
3,000 | London Stock Exchange Group PLC | 324,658 | ||||||
696,581 | ||||||||
INSURANCE - 3.7% | ||||||||
2,850 | Assurant, Inc. | 367,992 | ||||||
4,500 | Cincinnati Financial Corp. ^ | 343,575 | ||||||
93,375 | Direct Line Insurance Group PLC | 368,745 | ||||||
17,250 | Gjensidige Forsikring ASA | 377,269 | ||||||
4,350 | Globe Life, Inc. | 404,985 | ||||||
104,020 | Insurance Australia Group Ltd. | 394,733 | ||||||
147,602 | Legal & General Group PLC | 497,961 | ||||||
356 | Markel Corp. * | 346,683 | ||||||
57,450 | RSA Insurance Group PLC | 516,949 | ||||||
8,625 | Sampo OYJ | 373,793 | ||||||
20,267 | Unum Group | 450,535 | ||||||
4,443,220 | ||||||||
INTERNET MEDIA & SERVICES - 0.9% | ||||||||
1,788 | Naspers Ltd | 361,493 | ||||||
12,225 | Trip.com Group Ltd. * | 410,638 | ||||||
1,605 | VeriSign, Inc. * | 322,156 | ||||||
1,094,287 | ||||||||
LEISURE FACILITIES & SERVICES - 0.4% | ||||||||
12,835 | Whitbread PLC | 519,373 | ||||||
See accompanying notes to financial statements.
19
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
MACHINERY - 2.1% | ||||||||
12,068 | Flowserve Corp. | $ | 411,277 | |||||
25,350 | IMI PLC | 378,371 | ||||||
1,725 | Parker-Hannifin Corp. | 461,024 | ||||||
17,325 | Sandvik AB | 389,773 | ||||||
2,400 | Snap-on, Inc. | 422,040 | ||||||
30,300 | WEG SA | 417,865 | ||||||
2,480,350 | ||||||||
MEDICAL EQUIPMENT & DEVICES - 4.8% | ||||||||
3,525 | Agilent Technologies, Inc. | 412,072 | ||||||
2,400 | Cochlear Ltd. | 389,800 | ||||||
2,096 | Coloplast A/S | 313,802 | ||||||
11,625 | Demant A/S* | 439,032 | ||||||
7,424 | Dentsply Sirona, Inc. | 377,807 | ||||||
4,425 | Edwards Lifesciences Corp. * | 371,213 | ||||||
2,714 | Essilor International SA | 393,961 | ||||||
900 | IDEXX Laboratories, Inc. * | 414,882 | ||||||
1,239 | Illumina, Inc. * | 399,070 | ||||||
525 | Intuitive Surgical, Inc. * | 381,176 | ||||||
375 | Mettler-Toledo International, Inc.* | 431,265 | ||||||
17,928 | Smith & Nephew PLC | 347,294 | ||||||
175,200 | Top Glove Corp. Bhd | 306,191 | ||||||
1,950 | Varian Medical Systems, Inc.* | 339,261 | ||||||
1,794 | Waters Corp. * | 416,226 | ||||||
5,733,052 | ||||||||
METALS & MINING - 4.4% | �� | |||||||
4,321,800 | Adaro Energy Tbk PT | 425,446 | ||||||
14,079 | Anglo American PLC | 416,054 | ||||||
25,575 | Antofagasta PLC | 427,994 | ||||||
15,525 | BHP Group PLC | 352,063 | ||||||
11,475 | Boliden AB | 396,604 | ||||||
29,925 | Fortescue Metals Group Ltd. | 401,976 | ||||||
22,875 | Freeport-McMoRan, Inc. | 535,046 | ||||||
22,125 | Fresnillo PLC | 310,888 | ||||||
140,538 | Grupo Mexico SAB de CV | 512,467 | ||||||
15,000 | Newcrest Mining Ltd. | 297,651 | ||||||
5,625 | Newmont Mining Corp. | 330,863 | ||||||
125,334 | Norsk Hydro ASA | 509,453 | ||||||
5,550 | Rio Tinto PLC | 358,177 | ||||||
5,274,682 | ||||||||
OIL & GAS PRODUCERS - 6.5% | ||||||||
20,232 | Ampol Ltd. | 456,929 | ||||||
30,473 | Apache Corp. | 392,797 | ||||||
18,150 | Cabot Oil & Gas Corp. | 317,988 | ||||||
7,500 | Cheniere Energy, Inc. * | 425,175 | ||||||
27,450 | Cosan SA | 400,170 | ||||||
38,985 | Devon Energy Corp. | 545,400 | ||||||
41,888 | Eni SpA | 416,034 | ||||||
9,302 | EOG Resources, Inc. | 436,078 | ||||||
23,550 | EQT Corp. | 350,424 | ||||||
See accompanying notes to financial statements.
20
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
OIL & GAS PRODUCERS (continued) - 6.5% | ||||||||
22,178 | Equinor ASA | $ | 351,078 | |||||
27,669 | Kinder Morgan, Inc. | 397,880 | ||||||
5,850 | Koninklijke Vopak NV | 308,112 | ||||||
11,779 | Marathon Petroleum Corp. | 457,968 | ||||||
32,508 | Occidental Petroleum Corp. | 512,326 | ||||||
13,789 | ONEOK, Inc. | 494,611 | ||||||
93,525 | Petroleo Brasileiro SA | 432,710 | ||||||
3,894 | Pioneer Natural Resources Co. | 391,659 | ||||||
7,603 | Valero Energy Corp. | 408,813 | ||||||
17,148 | Williams Cos., Inc. | 359,765 | ||||||
7,855,917 | ||||||||
OIL & GAS SERVICES & EQUIPMENT - 1.5% | ||||||||
25,581 | Halliburton Co. | 424,389 | ||||||
24,035 | Helmerich & Payne, Inc. | 547,277 | ||||||
32,538 | National Oilwell Varco, Inc. | 398,916 | ||||||
53,124 | TechnipFMC PLC | 441,460 | ||||||
1,812,042 | ||||||||
REAL ESTATE INVESTMENT TRUSTS - 7.1% | ||||||||
1,436 | American Tower Corp. | 332,003 | ||||||
10,116 | Apartment Investment & Management Co. | 307,021 | ||||||
2,138 | AvalonBay Communities, Inc. | 356,169 | ||||||
4,284 | Boston Properties, Inc. | 420,517 | ||||||
80,573 | British Land Co. PLC | 507,403 | ||||||
5,135 | COVIVIO | 420,761 | ||||||
2,174 | Crown Castle International Corp. | 364,297 | ||||||
54,375 | Dexus | 391,447 | ||||||
450 | Equinix, Inc. | 314,006 | ||||||
6,603 | Equity Residential | 382,446 | ||||||
1,676 | Essex Property Trust, Inc. | 412,095 | ||||||
26,100 | Goodman Group | 359,250 | ||||||
120,832 | GPT Group | 420,246 | ||||||
507,595 | Hammerson PLC | 146,579 | ||||||
12,322 | Healthpeak Properties, Inc. | 355,613 | ||||||
31,362 | Kimco Realty Corp. | 452,867 | ||||||
53,215 | Land Securities Group PLC | 467,190 | ||||||
50,357 | Macerich Co. ^ | 503,570 | ||||||
3,525 | Prologis, Inc. | 352,676 | ||||||
1,575 | Public Storage | 353,524 | ||||||
5,380 | Simon Property Group, Inc. | 444,227 | ||||||
7,721 | SL Green Realty Corp. ^ | 447,046 | ||||||
8,510,953 | ||||||||
REAL ESTATE OWNERS & DEVELOPERS - 1.1% | ||||||||
22,950 | Ayala Corp. | 393,081 | ||||||
550,575 | Ayala Land, Inc. | 435,147 | ||||||
231,158 | Mirvac Group | 439,448 | ||||||
1,267,676 | ||||||||
See accompanying notes to financial statements.
21
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) November 30, 2020 |
Shares | Value | |||||||
RENEWABLE ENERGY - 0.4% | ||||||||
2,250 | Vestas Wind Systems A/S | $ | 461,209 | |||||
RETAIL - CONSUMER STAPLES - 0.9% | ||||||||
975 | Costco Wholesale Corp. | 381,976 | ||||||
3,706 | Dollar Tree, Inc. * | 404,843 | ||||||
148,096 | Wm Morrison Supermarkets PLC | 355,592 | ||||||
1,142,411 | ||||||||
RETAIL - DISCRETIONARY - 3.8% | ||||||||
300 | AutoZone, Inc. * | 341,295 | ||||||
3,225 | CarMax, Inc. * | 301,473 | ||||||
3,600 | Genuine Parts Co. | 354,132 | ||||||
89,025 | Kingfisher PLC * | 325,181 | ||||||
16,794 | Kohl’s Corp. | 540,767 | ||||||
2,100 | Lowe’s Cos, Inc. | 327,222 | ||||||
264,860 | Marks & Spencer Group PLC | 444,654 | ||||||
4,350 | Next PLC | 380,505 | ||||||
750 | O’Reilly Automotive, Inc. * | 331,830 | ||||||
4,575 | Pandora A/S | 459,522 | ||||||
3,634 | Ross Stores, Inc. | 390,728 | ||||||
2,400 | Tractor Supply Co. | 337,944 | ||||||
4,535,253 | ||||||||
SEMICONDUCTORS - 4.4% | ||||||||
3,008 | Analog Devices, Inc. | 418,353 | ||||||
897 | ASML Holding NV | 390,408 | ||||||
975 | Broadcom Ltd. | 391,540 | ||||||
12,375 | Infineon Technologies AG | 436,984 | ||||||
1,872 | KLA Corp. | 471,688 | ||||||
1,050 | Lam Research Corp. | 475,293 | ||||||
5,250 | Maxim Integrated Products, Inc. | 435,960 | ||||||
3,466 | Microchip Technology, Inc. | 465,796 | ||||||
675 | NVIDIA Corp. | 361,841 | ||||||
2,775 | NXP Semiconductors NV | 439,615 | ||||||
11,550 | STMicroelectronics NV - ADR ^ | 457,957 | ||||||
3,447 | Xilinx, Inc. | 501,711 | ||||||
5,247,146 | ||||||||
SOFTWARE - 3.1% | ||||||||
1,125 | ANSYS, Inc. * | 380,318 | ||||||
3,375 | Cadence Design Systems, Inc. * | 392,512 | ||||||
4,679 | Cerner Corp. | 350,176 | ||||||
1,425 | Palo Alto Networks, Inc. * | 418,836 | ||||||
36,900 | Sage Group PLC | 298,043 | ||||||
750 | ServiceNow, Inc. * | 400,913 | ||||||
1,908 | Splunk, Inc. * | 389,575 | ||||||
1,727 | Synopsys, Inc. * | 392,892 | ||||||
69,750 | TOTVS SA | 354,827 | ||||||
1,275 | Veeva Systems, Inc. * | 353,009 | ||||||
3,731,101 | ||||||||
See accompanying notes to financial statements.
22
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
SPECIALTY FINANCE - 0.4% | ||||||||
15,000 | Housing Development Finance Corp | $ | 457,000 | |||||
2,977 | Isracard Ltd. | 9,719 | ||||||
466,719 | ||||||||
STEEL - 0.8% | ||||||||
7,575 | Nucor Corp. | 406,777 | ||||||
69,075 | Tata Steel Ltd. | 538,516 | ||||||
945,293 | ||||||||
TECHNOLOGY HARDWARE - 1.1% | ||||||||
1,704 | Arista Networks, Inc. * | 461,273 | ||||||
7,844 | NetApp, Inc. | 418,164 | ||||||
31,575 | Telefonaktiebolaget LM Ericsson | 387,220 | ||||||
1,266,657 | ||||||||
TECHNOLOGY SERVICES - 3.4% | ||||||||
5,025 | Cognizant Technology Solutions | 392,603 | ||||||
375 | CoStar Group, Inc. * | 341,464 | ||||||
2,223 | Equifax, Inc. | 371,019 | ||||||
2,325 | Fidelity National Information Services, Inc. | 345,053 | ||||||
1,447 | FleetCor Technologies, Inc. * | 383,759 | ||||||
2,728 | Gartner, Inc. * | 414,656 | ||||||
24,450 | Infosys Ltd. | 363,170 | ||||||
4,342 | Paychex, Inc. | 404,457 | ||||||
10,125 | Tata Consultancy Services Ltd. | 366,363 | ||||||
1,875 | Verisk Analytics, Inc. | 371,831 | ||||||
15,353 | Western Union Co. | 346,364 | ||||||
4,100,739 | ||||||||
TELECOMMUNICATIONS - 0.3% | ||||||||
35,631 | Mobile TeleSystems PJSC - ADR | 307,496 | ||||||
TRANSPORTATION & LOGISTICS - 5.2% | ||||||||
3,385 | Aeroports de Paris | 428,804 | ||||||
2,161,800 | AirAsia Group Bhd * | 376,749 | ||||||
118,246 | Babcock International Group PLC | 533,424 | ||||||
3,375 | CH Robinson Worldwide, Inc. ^ | 317,149 | ||||||
52,642 | easyJet PLC | 566,033 | ||||||
3,825 | Expeditors International of Washington, Inc. | 341,840 | ||||||
8,240 | Fraport AG Frankfurt Airport | 468,981 | ||||||
31,858 | Grupo Aeroportuario del Sureste SAB de CV * | 475,898 | ||||||
2,625 | JB Hunt Transport Services, Inc. | 355,110 | ||||||
1,875 | Kansas City Southern | 349,069 | ||||||
1,725 | Kuehne + Nagel International AG | 391,950 | ||||||
1,575 | Norfolk Southern Corp. | 373,307 | ||||||
110,475 | Royal Mail PLC | 453,826 | ||||||
4,200 | Ryanair Holdings PLC - ADR * | 435,834 | ||||||
1,725 | Union Pacific Corp. | 352,038 | ||||||
6,220,012 | ||||||||
TRANSPORTATION EQUIPMENT - 0.6% | ||||||||
4,125 | PACCAR, Inc. | 359,122 | ||||||
18,000 | Volvo AB | 413,907 | ||||||
773,029 | ||||||||
See accompanying notes to financial statements.
23
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
WHOLESALE - CONSUMER STAPLES - 0.3% | ||||||||
5,625 | Sysco Corp. | $ | 401,006 | |||||
WHOLESALE - DISCRETIONARY - 0.4% | ||||||||
10,725 | Bunzl PLC | 337,771 | ||||||
TOTAL COMMON STOCKS (Cost $104,539,799) | 118,953,409 | |||||||
STOCK WARRANTS - 0.0% | ||||||||
APPAREL & TEXTILE PRODUCTS - 0.0% | ||||||||
10,118 | Cie Financiere Richemont SA* | 2,012 | ||||||
OIL & GAS PRODUCERS - 0.0% | ||||||||
2,243 | Occidental Petroleum Corp. * ^ | 11,529 | ||||||
TOTAL STOCK WARRANTS (Cost $5,561) | 13,541 | |||||||
SHORT-TERM INVESTMENT | ||||||||
COLLATERAL FOR SECURITIES LOANED - 3.1% ^^ | ||||||||
MONEY MARKET FUND - 3.1% | ||||||||
3,737,730 | Fidelity Government Portfolio - Institutional Class, to yield 0.01% + | 3,737,730 | ||||||
TOTAL MONEY MARKET FUND (Cost $3,737,730) | ||||||||
TOTAL INVESTMENTS - 101.9% (Cost $108,283,090) | $ | 122,704,680 | ||||||
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.9)% | (2,251,694 | ) | ||||||
NET ASSETS - 100.0% | $ | 120,452,986 | ||||||
^ | All or a portion of this security is on loan as of November 30, 2020. The total value of securities on loan as of November 30, 2020 is $3,571,734. |
^^ | This security was purchased with cash collateral held from securities on loan. The total value of such security as of November 30, 2020 is $3,737,730. |
* | Non-Income producing security. |
+ | Money market fund; interest rate reflects seven-day effective yield on November 30, 2020. |
PLC - Public Limited Company
See accompanying notes to financial statements.
24
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS |
November 30, 2020 |
Shares | Value | |||||||
COMMON STOCKS - 99.5% | ||||||||
AEROSPACE & DEFENSE - 1.8% | ||||||||
11,346 | AAR Corp. | $ | 321,886 | |||||
3,162 | AeroVironment, Inc. * | 270,003 | ||||||
6,448 | Barnes Group, Inc. | 296,672 | ||||||
3,906 | Moog, Inc. | 302,168 | ||||||
25,358 | Triumph Group, Inc. | 333,965 | ||||||
1,524,694 | ||||||||
APPAREL & TEXTILE PRODUCTS - 0.4% | ||||||||
10,416 | Steven Madden Ltd. | 327,792 | ||||||
ASSET MANAGEMENT - 1.7% | ||||||||
16,554 | Blucora, Inc. * | 215,864 | ||||||
45,446 | Boston Private Financial Holdings, Inc. | 325,393 | ||||||
18,600 | Kennedy-Wilson Holdings, Inc. | 297,228 | ||||||
14,880 | Sculptor Capital Management, Inc. | 209,510 | ||||||
22,878 | Waddell & Reed Financial, Inc. ^ | 376,572 | ||||||
1,424,567 | ||||||||
AUTOMOTIVE - 2.3% | ||||||||
27,528 | American Axle & Manufacturing Holdings, Inc. * ^ | 219,123 | ||||||
16,058 | Dana, Inc. | 270,417 | ||||||
2,790 | Dorman Products, Inc. * | 257,712 | ||||||
6,696 | Gentherm, Inc. * ^ | 380,735 | ||||||
7,141 | Methode Electronics, Inc. | 250,078 | ||||||
5,208 | Standard Motor Products, Inc. | 241,078 | ||||||
3,100 | Visteon Corp. * ^ | 374,635 | ||||||
1,993,778 | ||||||||
BANKING - 9.2% | ||||||||
34,534 | Associated Banc-Corp. | 529,061 | ||||||
36,580 | Brookline Bancorp, Inc. | 415,915 | ||||||
32,302 | Capitol Federal Financial, Inc. | 397,961 | ||||||
22,816 | Cathay General Bancorp. ^ | 644,552 | ||||||
8,866 | Community Bank System, Inc. | 551,908 | ||||||
11,346 | Eagle Bancorp, Inc. ^ | 417,306 | ||||||
57,412 | First BanCorp. ^ | 455,851 | ||||||
9,300 | Flagstar Bancorp, Inc. | 325,872 | ||||||
19,282 | Great Western Bancorp., Inc. | 316,803 | ||||||
14,322 | Hilltop Holdings, Inc. | 345,017 | ||||||
46,624 | Hope Bancorp, Inc. | 441,996 | ||||||
41,912 | Northwest Bancshares, Inc. | 495,819 | ||||||
21,390 | Provident Financial Services, Inc. | 335,181 | ||||||
13,206 | ServisFirst Bancshares, Inc. | 498,923 | ||||||
15,376 | Southside Bancshares, Inc. ^ | 452,054 | ||||||
7,936 | Texas Capital Bancshares, Inc. * | 443,622 | ||||||
14,198 | Washington Federal, Inc. | 331,807 | ||||||
9,052 | Westamerica BanCorp. ^ | 498,946 | ||||||
7,898,594 | ||||||||
See accompanying notes to financial statements.
25
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
BEVERAGES - 0.3% | ||||||||
930 | Coca-Cola Consolidated, Inc. ^ | $ | 243,372 | |||||
BIOTECHNOLOGY & PHARMACEUTICAL - 2.8% | ||||||||
14,880 | Aerie Pharmaceuticals, Inc. * ^ | 184,661 | ||||||
35,092 | Amneal Pharmaceuticals, Inc. * | 138,613 | ||||||
10,168 | Coherus Biosciences, Inc. * ^ | 187,701 | ||||||
4,464 | Enanta Pharmaceuticals, Inc.* ^ | 183,917 | ||||||
7,750 | Halozyme Therapeutics, Inc.* | 303,025 | ||||||
3,782 | Intercept Pharmaceuticals, Inc.* | 134,299 | ||||||
3,658 | Pacira Biosciences, Inc.* ^ | 221,638 | ||||||
5,642 | Prestige Consumer Healthcare, Inc.* | 200,686 | ||||||
3,534 | Sage Therapeutics, Inc. * | 261,834 | ||||||
9,238 | Supernus Pharmaceuticals, Inc.* | 196,769 | ||||||
8,804 | Theravance Biopharma, Inc.* | 146,058 | ||||||
2,356 | Ultragenyx Pharmaceutical Inc. * | 279,280 | ||||||
2,438,481 | ||||||||
CHEMICALS - 3.8% | ||||||||
11,408 | Avient Corp. | 416,962 | ||||||
3,720 | Balchem Corp. | 385,727 | ||||||
11,656 | Cabot Corp. | 482,675 | ||||||
12,028 | Chemours Co. | 292,641 | ||||||
12,276 | GCP Applied Technologies, Inc. * | 288,363 | ||||||
4,960 | Materion Corp. | 289,168 | ||||||
1,612 | Quaker Chemical Corp. | 398,164 | ||||||
17,298 | Univar Solutions, Inc. * | 309,634 | ||||||
1,612 | WD-40 Co. ^ | 409,948 | ||||||
3,273,282 | ||||||||
COMMERCIAL SUPPORT SERVICES - 3.3% | ||||||||
6,758 | ABM Industries, Inc. | 260,183 | ||||||
3,658 | AMN Healthcare Services, Inc.* | 238,355 | ||||||
2,666 | Corvel Corp.* | 238,740 | ||||||
26,350 | Covanta Holding Corp. | 326,740 | ||||||
7,440 | Deluxe Corp. ^ | 191,506 | ||||||
14,322 | Harsco Corp. * | 242,758 | ||||||
7,626 | HMS Holdings Corp. * | 239,609 | ||||||
3,100 | Insperity, Inc. | 265,050 | ||||||
3,658 | TriNet Group, Inc. * | 274,350 | ||||||
6,634 | US Ecology, Inc. ^ | 224,826 | ||||||
11,470 | Viad Corp. | 343,756 | ||||||
2,845,873 | ||||||||
CONSTRUCTION MATERIALS - 0.9% | ||||||||
2,728 | Eagle Materials, Inc. | 248,221 | ||||||
2,666 | Simpson Manufacturing Co., Inc. | 245,005 | ||||||
12,896 | Summit Materials, Inc. * | 245,024 | ||||||
738,250 | ||||||||
See accompanying notes to financial statements.
26
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
CONSUMER SERVICES - 1.4% | ||||||||
4,526 | 2U, Inc. * ^ | $ | 146,235 | |||||
6,510 | Adtalem Global Education, Inc. * ^ | 186,381 | ||||||
11,842 | Matthews International Corp. | 316,537 | ||||||
15,004 | Perdoceo Education Corp.* ^ | 170,145 | ||||||
7,192 | Rent-A-Center, Inc. | 243,233 | ||||||
1,736 | Strategic Education, Inc. | 162,993 | ||||||
1,225,524 | ||||||||
CONTAINERS & PACKAGING - 0.3% | ||||||||
20,646 | O-I Glass, Inc. | 233,713 | ||||||
ELECTRIC UTILITIES - 1.4% | ||||||||
5,332 | MGE Energy, Inc. ^ | 366,148 | ||||||
8,246 | NorthWestern Corp. | 478,268 | ||||||
9,052 | Otter Tail Corp. | 360,451 | ||||||
1,204,867 | ||||||||
ELECTRICAL EQUIPMENT - 1.5% | ||||||||
4,216 | Advanced Energy Industries, Inc. * | 406,675 | ||||||
6,076 | Badger Meter, Inc. ^ | 500,905 | ||||||
4,216 | OSI Systems, Inc. * ^ | 371,430 | ||||||
1,279,010 | ||||||||
ENGINEERING & CONSTRUCTION - 0.7% | ||||||||
4,650 | Dycom Industries, Inc. * | 292,299 | ||||||
2,666 | Installed Building Products, Inc. * | 263,454 | ||||||
555,753 | ||||||||
ENTERTAINMENT CONTENT - 0.3% | ||||||||
8,060 | AMC Networks, Inc. * ^ | 265,738 | ||||||
FOOD - 1.6% | ||||||||
7,440 | B&G Foods, Inc. ^ | 206,014 | ||||||
8,990 | Fresh Del Monte Produce, Inc. | 228,256 | ||||||
1,860 | J & J Snack Foods Corp. ^ | 270,425 | ||||||
8,184 | Phibro Animal Health Corp. ^ | 154,596 | ||||||
2,108 | Sanderson Farms, Inc. | 288,227 | ||||||
7,998 | Tootsie Roll Industries, Inc. | 247,698 | ||||||
1,395,216 | ||||||||
FORESTRY, PAPER & WOOD PRODUCTS - 1.4% | ||||||||
12,152 | Domtar Corp. | 365,775 | ||||||
7,936 | Louisiana-Pacific Corp. | 271,649 | ||||||
6,200 | Neenah, Inc. | 300,762 | ||||||
4,340 | UFP Industries, Inc. | 232,841 | ||||||
1,171,027 | ||||||||
GAS & WATER UTILITIES - 1.1% | ||||||||
5,766 | Northwest Natural Holding Co. | 276,307 | ||||||
5,890 | ONE Gas, Inc. | 466,370 | ||||||
15,004 | Suburban Propane Partners LP | 229,861 | ||||||
972,538 | ||||||||
See accompanying notes to financial statements.
27
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
HEALTHCARE FACILITIES & SERVICES - 1.7% | ||||||||
8,370 | Acadia Healthcare Co., Inc. * ^ | $ | 355,307 | |||||
67,208 | Brookdale Senior Living, Inc. * | 284,962 | ||||||
4,836 | Ensign Group, Inc. | 347,563 | ||||||
7,874 | Tenet Healthcare Corp. * | 247,480 | ||||||
14,136 | Tivity Health, Inc. * | 260,526 | ||||||
1,495,838 | ||||||||
HOME & OFFICE PRODUCTS - 0.8% | ||||||||
7,316 | Herman Miller, Inc. | 260,742 | ||||||
6,510 | HNI Corp. | 237,355 | ||||||
2,728 | iRobot Corp.* | 213,957 | ||||||
712,054 | ||||||||
HOME CONSTRUCTION - 2.1% | ||||||||
930 | Cavco Industries, Inc. * | 167,409 | ||||||
10,044 | Forestar Group, Inc. * | 195,456 | ||||||
1,736 | LGI Homes, Inc. * | 187,575 | ||||||
4,898 | M/I Homes, Inc. * | 222,614 | ||||||
4,836 | MDC Holdings, Inc. | 233,434 | ||||||
2,232 | Meritage Homes Corp. * | 201,215 | ||||||
3,162 | Patrick Industries, Inc. | 199,332 | ||||||
10,664 | PGT Innovations, Inc. * | 198,564 | ||||||
8,866 | Taylor Morrison Home Corp. * | 224,132 | ||||||
1,829,731 | ||||||||
HOUSEHOLD PRODUCTS - 1.2% | ||||||||
5,084 | Energizer Holdings, Inc. ^ | 212,969 | ||||||
5,270 | Inter Parfums, Inc. | 286,214 | ||||||
4,526 | Nu Skin Enterprises, Inc. | 233,134 | ||||||
25,668 | Revlon, Inc. * ^ | 330,090 | ||||||
1,062,407 | ||||||||
INDUSTRIAL INTERMEDIATE PRODUCTS - 2.5% | ||||||||
8,556 | AZZ, Inc. | 381,512 | ||||||
3,224 | Chart Industries, Inc. * ^ | 333,233 | ||||||
5,828 | EnPro Industries, Inc. | 412,681 | ||||||
13,020 | Mueller Industries, Inc. | 426,535 | ||||||
2,046 | Proto Labs, Inc. * ^ | 282,675 | ||||||
13,206 | Raven Industries, Inc. | 333,055 | ||||||
2,169,691 | ||||||||
INDUSTRIAL SUPPORT SERVICES - 0.5% | ||||||||
6,324 | WESCO International, Inc. * | 412,451 | ||||||
INSTITUTIONAL FINANCIAL SERVICES - 0.5% | ||||||||
6,820 | Houlihan Lokey, Inc. | 441,800 | ||||||
See accompanying notes to financial statements.
28
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
INSURANCE - 2.7% | ||||||||
25,730 | CNO Financial Group, Inc. | $ | 547,534 | |||||
2,666 | eHealth, Inc.* | 202,589 | ||||||
6,510 | FBL Financial Group | 338,520 | ||||||
85,664 | Genworth Financial, Inc.* | 388,915 | ||||||
7,192 | National General Holdings Corp. | 245,103 | ||||||
4,712 | Safety Insurance Group, Inc. | 335,730 | ||||||
11,222 | United Fire Group, Inc. | 245,425 | ||||||
2,303,816 | ||||||||
INTERNET MEDIA SERVICES - 0.2% | ||||||||
806 | Stamps.com, Inc. * | 151,093 | ||||||
LEISURE FACILITIES & SERVICES - 2.5% | ||||||||
8,060 | Brinker International, Inc. ^ | 403,887 | ||||||
11,160 | Cheesecake Factory, Inc. ^ | 418,277 | ||||||
5,022 | Dine Brands Global, Inc. | 316,235 | ||||||
17,980 | Extended Stay America, Inc. | 246,506 | ||||||
12,896 | SeaWorld Entertainment, Inc. * | 359,798 | ||||||
10,602 | St. Joe Co. * ^ | 349,972 | ||||||
2,094,675 | ||||||||
LEISURE PRODUCTS - 0.7% | ||||||||
11,036 | Callaway Golf Co. | 234,515 | ||||||
1,984 | Fox Factory Holding Corp.* | 173,144 | ||||||
3,348 | Winnebago Industries, Inc. | 177,210 | ||||||
584,869 | ||||||||
MACHINERY - 3.0% | ||||||||
3,224 | Alamo Group, Inc. | 437,561 | ||||||
5,456 | Albany International Corp. | 373,900 | ||||||
4,464 | ESCO Technologies, Inc. | 441,490 | ||||||
13,392 | Federal Signal Corp. | 415,554 | ||||||
2,852 | John Bean Technologies Corp. | 315,317 | ||||||
4,526 | Tennant Co. ^ | 303,966 | ||||||
33,976 | Welbilt, Inc. * | 321,073 | ||||||
2,608,861 | ||||||||
MEDICAL EQUIPMENT & DEVICES - 3.7% | ||||||||
6,448 | Avanos Medical, Inc. * | 273,331 | ||||||
5,022 | BioTelemetry, Inc.* ^ | 278,269 | ||||||
4,030 | Cantel Medical Corp. ^ | 239,503 | ||||||
9,734 | CryoLife, Inc. * | 202,662 | ||||||
6,324 | Inogen, Inc. * ^ | 221,783 | ||||||
3,410 | Integer Holdings Corp.* | 245,827 | ||||||
15,376 | Lantheus Holdings, Inc. * | 202,348 | ||||||
6,076 | Luminex Corp. | 144,183 | ||||||
4,898 | Merit Medical Systems, Inc. * | 269,733 | ||||||
14,508 | Myriad Genetics, Inc. * ^ | 254,470 | ||||||
12,462 | Natus Medical, Inc. * | 260,705 | ||||||
3,038 | Neogen Corp. * | 225,480 | ||||||
10,478 | OraSure Technologies, Inc. * ^ | 125,736 | ||||||
12,090 | Varex Imaging Corp. * ^ | 201,661 | ||||||
3,145,691 | ||||||||
See accompanying notes to financial statements.
29
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
METALS & MINING - 1.6% | ||||||||
55,614 | Alliance Resource Partners LP | $ | 250,263 | |||||
29,078 | Coeur Mining, Inc. * | 206,163 | ||||||
4,712 | Compass Minerals International, Inc. | 294,312 | ||||||
5,456 | Encore Wire Corp. ^ | 281,912 | ||||||
4,154 | Kaiser Aluminum Corp. | 323,929 | ||||||
1,356,579 | ||||||||
OIL & GAS PRODUCERS - 2.8% | ||||||||
17,174 | Callon Petroleum Co. * | 163,325 | ||||||
14,136 | Crestwood Equity Partners LP | 230,558 | ||||||
89,714 | Enerplus Corp. | 227,874 | ||||||
73,532 | EnLink Midstream LLC | 272,068 | ||||||
131,936 | Kosmos Energy Ltd. | 232,207 | ||||||
1,674 | Murphy USA, Inc. * | 214,607 | ||||||
45,260 | NGL Energy Partners LP | 98,667 | ||||||
15,934 | PDC Energy, Inc. * | 266,416 | ||||||
135,470 | QEP Resources, Inc. | 218,107 | ||||||
7,440 | Sunoco LP | 206,758 | ||||||
22,134 | Viper Energy Partners LP | 247,901 | ||||||
2,378,488 | ||||||||
OIL & GAS SERVICES & EQUIPMENT - 2.0% | ||||||||
30,814 | Archrock, Inc. | 239,425 | ||||||
4,898 | Dril-Quip, Inc. * | 139,201 | ||||||
79,484 | Frank’s International NV * | 177,249 | ||||||
3,968 | Nabors Industries Ltd. ^ | 207,884 | ||||||
36,084 | NOW, Inc. * ^ | 201,349 | ||||||
43,028 | Oceaneering International, Inc. * | 261,180 | ||||||
48,856 | Oil States International, Inc. * | 216,921 | ||||||
63,240 | Patterson-UTI Energy, Inc. ^ | 272,564 | ||||||
1,715,773 | ||||||||
PUBLISHING & BROADCASTING - 0.8% | ||||||||
177,258 | Clear Channel Outdoor Holdings, Inc. * | 267,660 | ||||||
16,120 | EW Scripps Co. | 205,691 | ||||||
9,114 | Scholastic Corp. | 216,184 | ||||||
689,535 | ||||||||
REAL ESTATE INVESTMENT TRUSTS- 8.2% | ||||||||
19,654 | Acadia Realty Trust | 279,087 | ||||||
4,464 | Agree Realty Corp. | 294,178 | ||||||
10,664 | American Assets Trust, Inc. | 305,950 | ||||||
22,444 | CoreCivic, Inc. | 159,128 | ||||||
11,904 | Corporate Office Properties Trust | 317,004 | ||||||
44,764 | DiamondRock Hospitality Co. ^ | 336,625 | ||||||
17,050 | GEO Group, Inc. ^ | 161,123 | ||||||
9,548 | Getty Realty Corp. | 271,068 | ||||||
26,598 | Lexington Realty Trust | 271,566 | ||||||
See accompanying notes to financial statements.
30
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
REAL ESTATE INVESTMENT TRUSTS (continued) - 8.2% | ||||||||
15,810 | Mack-Cali Realty Corp. | $ | 215,965 | |||||
8,866 | Office Properties Income Trust | 202,588 | ||||||
13,454 | Outfront Media, Inc. | 254,819 | ||||||
19,406 | Pebblebrook Hotel Trust | 359,011 | ||||||
18,352 | Physicians Realty Trust | 318,407 | ||||||
2,666 | PS Business Parks, Inc. | 351,379 | ||||||
4,526 | QTS Realty Trust, Inc. | 268,890 | ||||||
26,908 | RLJ Lodging Trust | 331,776 | ||||||
6,262 | Ryman Hospitality Properties, Inc. | 401,958 | ||||||
5,704 | Saul Centers, Inc. | 177,965 | ||||||
28,706 | Service Properties Trust | 340,453 | ||||||
39,205 | Summit Hotel Properties, Inc. | 340,691 | ||||||
32,054 | Tanger Factory Outlet Centers, Inc. ^ | 302,910 | ||||||
5,394 | Taubman Centers, Inc. | 230,432 | ||||||
17,670 | Uniti Group, Inc. | 181,648 | ||||||
15,624 | Urban Edge Properties | 326,698 | ||||||
7,001,319 | ||||||||
RENEWABLE ENERGY - 0.4% | ||||||||
4,340 | EnerSys | 355,055 | ||||||
RETAIL - CONSUMER STAPLES - 0.8% | ||||||||
4,464 | Big Lots, Inc. | 230,655 | ||||||
3,472 | PriceSmart, Inc. | 282,204 | ||||||
4,829 | Weis Markets, Inc. ^ | 230,005 | ||||||
742,864 | ||||||||
RETAIL - DISCRETIONARY - 4.4% | ||||||||
11,594 | Buckle, Inc. ^ | 310,951 | ||||||
7,688 | Builders FirstSource, Inc. * | 287,608 | ||||||
6,820 | Children’s Place, Inc. ^ | 293,124 | ||||||
30,814 | Designer Brands, Inc. ^ | 243,431 | ||||||
7,688 | Dillard’s, Inc. ^ | 359,491 | ||||||
2,356 | Group 1 Automotive, Inc. ^ | 279,916 | ||||||
17,422 | Guess?, Inc. ^ | 292,515 | ||||||
930 | Lithia Motors, Inc. ^ | 269,049 | ||||||
23,560 | Michaels Cos., Inc. * | 233,008 | ||||||
682 | RH * ^ | 309,055 | ||||||
16,740 | Sally Beauty Holdings, Inc. * ^ | 192,510 | ||||||
3,906 | Sleep Number Corp. * | 271,037 | ||||||
4,836 | Sonic Automotive, Inc. ^ | 195,278 | ||||||
10,540 | Urban Outfitters, Inc. * | 288,585 | ||||||
3,825,558 | ||||||||
SEMICONDUCTORS - 2.7% | ||||||||
17,794 | Amkor Technology, Inc. * | 262,284 | ||||||
4,960 | Brooks Automation, Inc. | 362,030 | ||||||
11,594 | Cohu, Inc. ^ | 329,154 | ||||||
10,912 | CTS Corp. | 332,380 | ||||||
11,966 | Kulicke & Soffa Industries, Inc. | 364,365 | ||||||
5,642 | Power Integrations, Inc. | 402,782 | ||||||
17,732 | Rambus, Inc. * ^ | 278,747 | ||||||
2,331,742 | ||||||||
See accompanying notes to financial statements.
31
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
SOFTWARE - 4.7% | ||||||||
3,534 | Blackbaud, Inc. ^ | $ | 194,688 | |||||
6,448 | Cornerstone OnDemand, Inc. * ^ | 284,679 | ||||||
8,680 | Ebix, Inc. | 295,207 | ||||||
8,494 | Inovalon Holdings, Inc. * | 158,583 | ||||||
4,092 | LivePerson, Inc. * ^ | 239,055 | ||||||
1,922 | MicroStrategy, Inc. * | 658,804 | ||||||
3,596 | New Relic, Inc.* | 214,789 | ||||||
15,314 | NextGen Healthcare, Inc. * | 271,670 | ||||||
3,596 | Omnicell, Inc. * ^ | 377,041 | ||||||
7,378 | Progress Software Corp. | 295,858 | ||||||
2,356 | Qualys, Inc. * ^ | 223,844 | ||||||
4,402 | SPS Commerce, Inc. * | 453,714 | ||||||
6,386 | Verint Systems, Inc. * | 363,747 | ||||||
4,031,679 | ||||||||
SPECIALTY FINANCE - 2.6% | ||||||||
20,646 | Apollo Commercial Real Estate Finance, Inc. | 222,564 | ||||||
5,456 | Encore Capital Group, Inc. * | 186,268 | ||||||
3,348 | FirstCash, Inc. | 215,075 | ||||||
56,854 | Invesco Mortgage Capital, Inc. | 188,755 | ||||||
558 | LendingTree, Inc.* | 142,614 | ||||||
9,300 | Mr. Cooper Group, Inc.* | 247,938 | ||||||
2,790 | Nelnet, Inc. | 189,441 | ||||||
5,766 | PRA Group, Inc. * | 240,039 | ||||||
28,272 | SLM Corp. | 299,966 | ||||||
3,658 | Walker & Dunlop, Inc. | 292,677 | ||||||
2,225,337 | ||||||||
STEEL - 1.2% | ||||||||
23,002 | Allegheny Technologies, Inc. * | 310,297 | ||||||
30,256 | United States Steel Corp. | 429,332 | ||||||
6,138 | Worthington Industries, Inc. | 317,457 | ||||||
1,057,086 | ||||||||
TECHNOLOGY HARDWARE - 3.2% | ||||||||
34,348 | 3D Systems Corp. * | 314,284 | ||||||
12,648 | Benchmark Electronics, Inc. ^ | 307,599 | ||||||
4,278 | Fabrinet * | 292,230 | ||||||
35,092 | Fitbit, Inc. * | 251,961 | ||||||
16,120 | Knowles Corp. * ^ | 273,717 | ||||||
9,610 | Plantronics, Inc. | 262,545 | ||||||
10,788 | Sanmina Corp. * ^ | 343,220 | ||||||
7,316 | Super Micro Computer, Inc. * ^ | 206,384 | ||||||
21,824 | TTM Technologies, Inc. * ^ | 285,021 | ||||||
2,790 | Vicor Corp. * ^ | 228,668 | ||||||
2,765,629 | ||||||||
TECHNOLOGY SERVICES - 1.8% | ||||||||
7,502 | Cardtronics PLC * | 182,149 | ||||||
3,968 | ExlService Holdings, Inc. * | 330,376 | ||||||
3,658 | Green Dot Corp. * ^ | 195,922 | ||||||
8,370 | Sykes Enterprises, Inc.* | 314,963 | ||||||
4,595 | TTEC Holdings, Inc. | 310,898 | ||||||
5,146 | Virtusa Corp.* ^ | 257,712 | ||||||
1,592,020 | ||||||||
See accompanying notes to financial statements.
32
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
TELECOMMUNICATIONS - 1.2% | ||||||||
12,276 | 8x8, Inc. * ^ | $ | 242,697 | |||||
2,480 | Cogent Communications Holdings, Inc. | 144,187 | ||||||
7,564 | Iridium Communications, Inc.* | 242,729 | ||||||
7,502 | United States Cellular Corp.* ^ | 235,188 | ||||||
16,430 | Vonage Holdings Corp.* | 211,290 | ||||||
1,076,091 | ||||||||
TRANSPORTATION & LOGISTICS - 1.9% | ||||||||
1,488 | Allegiant Travel Co. | 253,243 | ||||||
20,460 | Heartland Express, Inc. | 378,101 | ||||||
6,200 | Kirby Corp. * | 313,720 | ||||||
7,316 | Matson, Inc. | 425,279 | ||||||
5,890 | SkyWest, Inc. | 252,858 | ||||||
1,623,201 | ||||||||
TRANSPORTATION EQUIPMENT - 0.3% | ||||||||
6,138 | Navistar International Corp.* | 271,668 | ||||||
WHOLESALE - CONSUMER STAPLES - 0.3% | ||||||||
3,348 | Calavo Growers, Inc. | 239,817 | ||||||
WHOLESALE - DISCRETIONARY - 0.3% | ||||||||
2,976 | ePlus, Inc. * | 250,907 | ||||||
TOTAL COMMON STOCKS (Cost $73,668,430) | 85,555,394 | |||||||
COLLATERAL FOR SECURITIES LOANED - 15.3% ^^ | ||||||||
MONEY MARKET FUND - 15.3% | ||||||||
13,147,841 | Fidelity Government Portfolio - Institutional Class, to yield 0.01% + | 13,147,841 | ||||||
TOTAL MONEY MARKET FUND (Cost $13,147,841) | ||||||||
TOTAL INVESTMENTS - 114.8% (Cost $86,816,271) | $ | 98,703,235 | ||||||
LIABILITIES IN EXCESS OF OTHER ASSETS - (14.8)% | (12,715,362 | ) | ||||||
NET ASSETS - 100.0% | $ | 85,987,873 | ||||||
^ | All or a portion of this security is on loan as of November 30, 2020. The total value of securities on loan as of November 30, 2020 is $12,589,850. |
^^ | This security was purchased with cash collateral held from securities on loan. The total value of such security as of November 30, 2020 is $13,147,841. |
* | Non-Income producing security. |
+ | Money market fund; interest rate reflects seven-day effective yield on November 30, 2020. |
ADR - American Depositary Receipt
LP - Limited Partnership
REIT - Real Estate Investment Trust
See accompanying notes to financial statements.
33
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS |
November 30, 2020 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||
CORPORATE BONDS - 96.2% | ||||||||||||
AUTOMOTIVE - 0.8% | ||||||||||||
1,196,000 | Aptiv PLC | 4.250 | 1/15/2026 | $ | 1,376,430 | |||||||
BANKING - 0.8% | ||||||||||||
1,265,000 | People’s United Financial, Inc. | 3.650 | 12/6/2022 | 1,331,025 | ||||||||
BIOTECHNOLOGY & PHARMACEUTICAL - 0.9% | ||||||||||||
1,196,000 | Zoetis, Inc. | 3.900 | 8/20/2028 | 1,416,686 | ||||||||
CHEMICALS - 0.2% | ||||||||||||
275,000 | LyondellBasell Industries NV | 5.750 | 4/15/2024 | 315,968 | ||||||||
COMMERCIAL SUPPORT SERVICES - 2.2% | ||||||||||||
58,000 | Block Financial LLC | 5.500 | 11/1/2022 | 61,868 | ||||||||
1,196,000 | Cintas Corp. No. 2 | 3.700 | 4/1/2027 | 1,377,981 | ||||||||
140,000 | Republic Services, Inc. | 3.550 | 6/1/2022 | 145,417 | ||||||||
1,360,000 | Republic Services, Inc. | 2.900 | 7/1/2026 | 1,498,178 | ||||||||
500,000 | Waste Connections, Inc. | 3.500 | 5/1/2029 | 572,643 | ||||||||
3,656,087 | ||||||||||||
CONTAINERS & PACKAGING - 1.0% | ||||||||||||
275,000 | International Paper Co. | 3.650 | 6/15/2024 | 301,539 | ||||||||
1,285,000 | International Paper Co. | 3.000 | 2/15/2027 | 1,416,291 | ||||||||
1,717,830 | ||||||||||||
DIVERSIFIED INDUSTRIALS - 2.1% | ||||||||||||
200,000 | Dover Corp. | 3.150 | 11/15/2025 | 220,147 | ||||||||
1,531,000 | Honeywell International, Inc. | 2.500 | 11/1/2026 | 1,684,323 | ||||||||
1,496,000 | Illinois Tool Works, Inc. | 2.650 | 11/15/2026 | 1,655,169 | ||||||||
3,559,639 | ||||||||||||
ELECTRIC & GAS MARKETING & TRADING - 0.8% | ||||||||||||
1,072,000 | CenterPoint Energy Resources Corp. | 4.000 | 12/1/2028 | 1,273,315 | ||||||||
ELECTRIC UTILITIES - 3.9% | ||||||||||||
112,000 | CenterPoint Energy, Inc. | 2.500 | 9/1/2022 | 115,855 | ||||||||
300,000 | Entergy Corp. | 2.950 | 9/1/2026 | 331,607 | ||||||||
70,000 | Kentucky Utilities Co. | 3.300 | 10/1/2025 | 77,698 | ||||||||
1,776,000 | PPL Capital Funding, Inc. | 4.200 | 6/15/2022 | 1,862,223 | ||||||||
1,426,000 | PPL Capital Funding, Inc. | 3.500 | 12/1/2022 | 1,505,901 | ||||||||
1,426,000 | PPL Electric Utilities Corp. | 3.000 | 9/15/2021 | 1,447,080 | ||||||||
10,000 | PPL Electric Utilities Corp. | 2.500 | 9/1/2022 | 10,316 | ||||||||
1,106,000 | WEC Energy Group, Inc. | 3.550 | 6/15/2025 | 1,234,164 | ||||||||
6,584,844 | ||||||||||||
ELECTRICAL EQUIPMENT - 4.6% | ||||||||||||
1,035,000 | Amphenol Corp. | 4.000 | 2/1/2022 | 1,067,256 | ||||||||
1,711,000 | Amphenol Corp. | 4.350 | 6/1/2029 | 2,074,910 | ||||||||
1,211,000 | Amphenol Corp. | 2.800 | 2/15/2030 | 1,322,685 | ||||||||
1,234,000 | Roper Technologies, Inc. | 3.800 | 12/15/2026 | 1,420,941 | ||||||||
1,550,000 | Roper Technologies, Inc. | 2.950 | 9/15/2029 | 1,713,063 | ||||||||
7,598,855 | ||||||||||||
FOOD - 3.5% | ||||||||||||
1,000,000 | Conagra Brands, Inc. | 4.850 | 11/1/2028 | 1,245,584 | ||||||||
1,426,000 | JM Smucker Co. | 3.500 | 10/15/2021 | 1,465,242 | ||||||||
1,126,000 | JM Smucker Co. | 3.500 | 3/15/2025 | 1,253,958 | ||||||||
1,583,000 | Mead Johnson Nutrition Co. | 4.125 | 11/15/2025 | 1,822,051 | ||||||||
5,786,835 | ||||||||||||
See accompanying notes to financial statements.
34
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||
GAS & WATER UTILITIES - 1.1% | ||||||||||||
1,562,000 | NiSource, Inc. | 3.490 | 5/15/2027 | $ | 1,759,716 | |||||||
HEALTHCARE FACILITIES & SERVICES - 3.2% | ||||||||||||
1,106,000 | AmerisourceBergen Corp. | 3.400 | 5/15/2024 | 1,200,265 | ||||||||
1,446,000 | AmerisourceBergen Corp. | 3.250 | 3/1/2025 | 1,589,282 | ||||||||
1,137,000 | Evernorth Health, Inc. | 3.900 | 2/15/2022 | 1,181,618 | ||||||||
125,000 | Evernorth Health, Inc. | 4.500 | 2/25/2026 | 145,074 | ||||||||
1,203,000 | Evernorth Health, Inc. | 3.400 | 3/1/2027 | 1,314,257 | ||||||||
5,430,496 | ||||||||||||
INSTITUTIONAL FINANCIAL SERVICES - 1.3% | ||||||||||||
700,000 | Brookfield Finance, Inc. | 4.850 | 3/29/2029 | 856,425 | ||||||||
1,196,000 | Cboe Global Markets, Inc. | 3.650 | 1/12/2027 | 1,371,128 | ||||||||
2,227,553 | ||||||||||||
INSURANCE - 1.0% | ||||||||||||
1,196,000 | Globe Life, Inc. | 4.550 | 9/15/2028 | 1,432,546 | ||||||||
200,000 | Old Republic International Corp. | 3.875 | 8/26/2026 | 230,273 | ||||||||
1,662,819 | ||||||||||||
MACHINERY - 1.6% | ||||||||||||
1,106,000 | Parker-Hannifin Corp. | 3.300 | 11/21/2024 | 1,212,038 | ||||||||
1,253,000 | Parker-Hannifin Corp. | 3.250 | 6/14/2029 | 1,424,725 | ||||||||
2,636,763 | ||||||||||||
OIL & GAS PRODUCERS - 10.7% | ||||||||||||
1,426,000 | EOG Resources, Inc. | 2.625 | 3/15/2023 | 1,491,240 | ||||||||
723,000 | EOG Resources, Inc. | 4.150 | 1/15/2026 | 837,178 | ||||||||
39,000 | Kinder Morgan Energy Partners LP | 4.300 | 5/1/2024 | 43,018 | ||||||||
1,230,000 | Kinder Morgan Energy Partners LP | 3.950 | 9/1/2022 | 1,294,869 | ||||||||
375,000 | Kinder Morgan, Inc. | 4.300 | 6/1/2025 | 426,833 | ||||||||
1,106,000 | Marathon Petroleum Corp. | 3.625 | 9/15/2024 | 1,190,416 | ||||||||
1,196,000 | Noble Energy, Inc. | 3.900 | 11/15/2024 | 1,334,462 | ||||||||
1,196,000 | ONEOK, Inc. | 4.350 | 3/15/2029 | 1,311,344 | ||||||||
1,106,000 | ONEOK Partners LP | 4.900 | 3/15/2025 | 1,224,093 | ||||||||
750,000 | Total Capital International SA | 3.455 | 2/19/2029 | 866,694 | ||||||||
1,446,000 | Total Capital International SA | 2.829 | 1/10/2030 | 1,616,122 | ||||||||
1,196,000 | Valero Energy Corp. | 3.400 | 9/15/2026 | 1,290,909 | ||||||||
385,000 | Williams Cos., Inc. | 4.000 | 9/15/2025 | 431,964 | ||||||||
1,277,000 | Williams Cos., Inc. | 3.350 | 8/15/2022 | 1,333,213 | ||||||||
1,425,000 | Williams Cos., Inc. | 4.300 | 3/4/2024 | 1,565,903 | ||||||||
1,446,000 | Williams Cos., Inc. | 3.900 | 1/15/2025 | 1,598,872 | ||||||||
17,857,130 | ||||||||||||
OIL & GAS SERVICES & EQUIPMENT - 4.8% | ||||||||||||
1,510,000 | Baker Hughes a GE Co. LLC | 2.773 | 12/15/2022 | 1,577,552 | ||||||||
1,808,000 | Baker Hughes a GE Co. LLC | 3.337 | 12/15/2027 | 1,994,343 | ||||||||
1,206,000 | Halliburton Co. | 3.800 | 11/15/2025 | 1,334,708 | ||||||||
389,000 | National Oilwell Varco, Inc. | 2.600 | 12/1/2022 | 399,350 | ||||||||
2,600,000 | National Oilwell Varco, Inc. | 3.600 | 12/1/2029 | 2,644,284 | ||||||||
7,950,237 | ||||||||||||
REAL ESTATE INVESTMENT TRUSTS - 23.1% | ||||||||||||
25,000 | American Homes 4 Rent LP | 4.900 | 2/15/2029 | 30,265 | ||||||||
300,000 | American Tower Corp. | 4.700 | 3/15/2022 | 316,689 | ||||||||
1,256,000 | American Tower Corp. | 3.125 | 1/15/2027 | 1,382,805 | ||||||||
1,426,000 | AvalonBay Communities, Inc. | 2.950 | 9/15/2022 | 1,481,429 | ||||||||
40,000 | AvalonBay Communities, Inc. | 2.850 | 3/15/2023 | 41,924 | ||||||||
1,696,000 | AvalonBay Communities, Inc. | 3.200 | 1/15/2028 | 1,883,469 | ||||||||
See accompanying notes to financial statements.
35
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||
REAL ESTATE INVESTMENT TRUSTS (continued) - 23.1% | ||||||||||||
1,426,000 | Boston Properties LP | 4.125 | 5/15/2021 | $ | 1,436,714 | |||||||
1,196,000 | Boston Properties LP | 3.850 | 2/1/2023 | 1,273,047 | ||||||||
1,196,000 | Boston Properties LP | 2.750 | 10/1/2026 | 1,289,018 | ||||||||
1,381,000 | CC Holdings GS V LLC | 3.849 | 4/15/2023 | 1,483,073 | ||||||||
1,100,000 | Crown Castle International Corp. | 5.250 | 1/15/2023 | 1,207,056 | ||||||||
35,000 | Duke Realty LP | 4.000 | 9/15/2028 | 41,204 | ||||||||
1,293,000 | ERP Operating LP | 4.625 | 12/15/2021 | 1,335,420 | ||||||||
1,426,000 | ERP Operating LP | 3.000 | 4/15/2023 | 1,501,676 | ||||||||
1,426,000 | Kimco Realty Corp. | 3.400 | 11/1/2022 | 1,500,125 | ||||||||
30,000 | Kimco Realty Corp. | 2.800 | 10/1/2026 | 32,444 | ||||||||
1,196,000 | Kimco Realty Corp. | 2.700 | 3/1/2024 | 1,263,540 | ||||||||
1,381,000 | Prologis LP | 3.750 | 11/1/2025 | 1,572,304 | ||||||||
1,196,000 | Prologis LP | 3.875 | 9/15/2028 | 1,409,767 | ||||||||
1,161,000 | Prologis LP | 2.250 | 4/15/2030 | 1,244,923 | ||||||||
1,196,000 | Realty Income Corp. | 4.125 | 10/15/2026 | 1,398,029 | ||||||||
1,148,000 | Realty Income Corp. | 3.000 | 1/15/2027 | 1,255,656 | ||||||||
1,196,000 | Realty Income Corp. | 3.650 | 1/15/2028 | 1,357,386 | ||||||||
1,696,000 | Simon Property Group LP | 2.500 | 7/15/2021 | 1,709,580 | ||||||||
1,696,000 | Simon Property Group LP | 2.750 | 2/1/2023 | 1,769,383 | ||||||||
1,196,000 | Simon Property Group LP | 3.750 | 2/1/2024 | 1,295,718 | ||||||||
1,496,000 | Simon Property Group LP | 3.250 | 11/30/2026 | 1,645,677 | ||||||||
1,081,000 | Ventas Realty LP | 3.750 | 5/1/2024 | 1,175,804 | ||||||||
1,196,000 | Ventas Realty LP | 3.500 | 2/1/2025 | 1,319,201 | ||||||||
10,000 | Ventas Realty LP | 4.125 | 1/15/2026 | 11,454 | ||||||||
1,196,000 | Ventas Realty LP | 3.250 | 10/15/2026 | �� | 1,309,253 | |||||||
1,081,000 | Welltower, Inc. | 4.500 | 1/15/2024 | 1,193,404 | ||||||||
1,211,000 | Welltower, Inc. | 4.000 | 6/1/2025 | 1,367,398 | ||||||||
38,534,835 | ||||||||||||
RETAIL - CONSUMER STAPLES - 3.4% | ||||||||||||
1,350,000 | Costco Wholesale Corp. | 2.300 | 5/18/2022 | 1,388,033 | ||||||||
1,446,000 | Costco Wholesale Corp. | 2.750 | 5/18/2024 | 1,557,098 | ||||||||
1,218,000 | Costco Wholesale Corp. | 3.000 | 5/18/2027 | 1,375,927 | ||||||||
1,211,000 | Dollar Tree Inc | 4.200 | 5/15/2028 | 1,438,012 | ||||||||
5,759,070 | ||||||||||||
RETAIL - DISCRETIONARY - 9.3% | ||||||||||||
1,606,000 | AutoZone, Inc. | 3.125 | 7/15/2023 | 1,703,100 | ||||||||
150,000 | AutoZone, Inc. | 2.500 | 4/15/2021 | 150,917 | ||||||||
1,156,000 | AutoZone, Inc. | 3.125 | 4/21/2026 | 1,276,418 | ||||||||
1,196,000 | AutoZone, Inc. | 3.750 | 6/1/2027 | 1,375,072 | ||||||||
1,100,000 | Kohl’s Corp. | 4.250 | 7/17/2025 | 1,175,236 | ||||||||
2,196,000 | Lowe’s Companies, Inc. | 3.750 | 4/15/2021 | 2,204,438 | ||||||||
1,426,000 | Lowe’s Companies, Inc. | 3.800 | 11/15/2021 | 1,460,134 | ||||||||
1,581,000 | Lowe’s Companies, Inc. | 3.120 | 4/15/2022 | 1,632,985 | ||||||||
1,196,000 | Lowe’s Companies, Inc. | 3.125 | 9/15/2024 | 1,299,175 | ||||||||
145,000 | Lowe’s Companies, Inc. | 3.375 | 9/15/2025 | 162,431 | ||||||||
1,176,000 | Lowe’s Companies, Inc. | 2.500 | 4/15/2026 | 1,275,031 | ||||||||
1,565,000 | Lowe’s Companies, Inc. | 3.100 | 5/3/2027 | 1,753,842 | ||||||||
15,468,779 | ||||||||||||
SEMICONDUCTORS - 4.4% | ||||||||||||
1,196,000 | Analog Devices, Inc. | 3.900 | 12/15/2025 | 1,364,988 | ||||||||
270,000 | Analog Devices, Inc. | 3.500 | 12/5/2026 | 305,993 | ||||||||
750,000 | Broadcom Corp. | 3.625 | 1/15/2024 | 809,052 | ||||||||
1,446,000 | Broadcom Corp. | 3.875 | 1/15/2027 | 1,624,957 | ||||||||
1,196,000 | Lam Research Corp. | 3.800 | 3/15/2025 | 1,339,367 | ||||||||
1,570,000 | Lam Research Corp. | 4.000 | 3/15/2029 | 1,885,454 | ||||||||
18,000 | Marvell Technology Group Ltd. | 4.875 | 6/22/2028 | 21,330 | ||||||||
7,351,141 | ||||||||||||
See accompanying notes to financial statements.
36
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||
SPECIALTY FINANCE - 0.8% | ||||||||||||
1,265,000 | Air Lease Corp. | 3.500 | 1/15/2022 | $ | 1,300,858 | |||||||
TRANSPORTATION & LOGISTICS - 7.1% | ||||||||||||
1,314,000 | Norfolk Southern Corp. | 3.250 | 12/1/2021 | 1,344,316 | ||||||||
1,626,000 | Norfolk Southern Corp. | 3.000 | 4/1/2022 | 1,675,069 | ||||||||
1,232,000 | Norfolk Southern Corp. | 3.850 | 1/15/2024 | 1,346,307 | ||||||||
1,376,000 | Norfolk Southern Corp. | 2.900 | 6/15/2026 | 1,525,406 | ||||||||
1,196,000 | Union Pacific Corp. | 3.646 | 2/15/2024 | 1,297,770 | ||||||||
1,395,000 | Union Pacific Corp. | 3.750 | 3/15/2024 | 1,522,734 | ||||||||
125,000 | Union Pacific Corp. | 2.750 | 3/1/2026 | 136,580 | ||||||||
1,196,000 | Union Pacific Corp. | 3.000 | 4/15/2027 | 1,326,512 | ||||||||
1,446,000 | Union Pacific Corp. | 3.950 | 9/10/2028 | 1,715,223 | ||||||||
11,889,917 | ||||||||||||
WHOLESALE - CONSUMER STAPLES - 3.6% | ||||||||||||
1,446,000 | Sysco Corp. | 2.600 | 6/12/2022 | 1,494,239 | ||||||||
1,331,000 | Sysco Corp. | 3.750 | 10/1/2025 | 1,496,583 | ||||||||
1,421,000 | Sysco Corp. | 3.300 | 7/15/2026 | 1,574,088 | ||||||||
1,296,000 | Sysco Corp. | 3.250 | 7/15/2027 | 1,432,706 | ||||||||
5,997,616 | ||||||||||||
TOTAL CORPORATE BONDS (Cost $155,465,239) | 160,444,444 | |||||||||||
TOTAL INVESTMENTS - 96.2% (Cost - $155,465,239) | $ | 160,444,444 | ||||||||||
OTHER ASSETS LESS LIABILITIES - 3.8% | 6,384,227 | |||||||||||
NET ASSETS - 100.0% | $ | 166,828,671 | ||||||||||
LLC - Limited Liability Company
LP - Limited Partnership
PLC - Public Limited Company
See accompanying notes to financial statements.
37
Inspire 100 ETF |
PORTFOLIO OF INVESTMENTS |
November 30, 2020 |
Shares | Value | |||||||
COMMON STOCKS - 98.9% | ||||||||
AUTOMOTIVE - 0.9% | ||||||||
10,707 | Aptiv PLC | $ | 1,270,921 | |||||
BANKING - 0.8% | ||||||||
34,993 | Regions Financial Corp. | 534,343 | ||||||
1,909 | SVB Financial Group * | 658,338 | ||||||
1,192,681 | ||||||||
BIOTECHNOLOGY & PHARMACEUTICAL - 5.5% | ||||||||
8,881 | Alexion Pharmaceuticals, Inc. * | 1,084,459 | ||||||
3,901 | Regeneron Pharmaceuticals, Inc. * | 2,013,033 | ||||||
10,613 | Vertex Pharmaceuticals, Inc. * | 2,417,111 | ||||||
16,954 | Zoetis, Inc. | 2,719,083 | ||||||
8,233,686 | ||||||||
CHEMICALS - 0.3% | ||||||||
4,233 | International Flavors & Fragrances, Inc. ^ | 474,519 | ||||||
COMMERCIAL SUPPORT SERVICES - 2.9% | ||||||||
3,652 | Cintas Corp. | 1,297,556 | ||||||
11,952 | Republic Services, Inc. | 1,155,997 | ||||||
15,936 | Waste Management, Inc. | 1,898,456 | ||||||
4,352,009 | ||||||||
CONSTRUCTION MATERIALS - 1.0% | ||||||||
2,573 | Martin Marietta Materials, Inc. | 683,466 | ||||||
5,312 | Vulcan Materials Co. | 741,821 | ||||||
1,425,287 | ||||||||
CONTAINERS & PACKAGING - 1.0% | ||||||||
15,936 | International Paper Co. | 788,513 | ||||||
6,059 | Sealed Air Corp. | 273,019 | ||||||
10,956 | WestRock Co. | 462,453 | ||||||
1,523,985 | ||||||||
DIVERSIFIED INDUSTRIALS - 7.1% | ||||||||
5,478 | Dover Corp. | 668,480 | ||||||
23,240 | Emerson Electric Co. | 1,785,297 | ||||||
27,556 | Honeywell International, Inc. | 5,619,220 | ||||||
11,775 | Illinois Tool Works, Inc. | 2,485,585 | ||||||
10,558,582 | ||||||||
ELECTRIC UTILITIES - 7.7% | ||||||||
8,881 | Alliant Energy Corp. | 467,141 | ||||||
18,924 | American Electric Power Co., Inc. | 1,606,458 | ||||||
19,920 | CenterPoint Energy, Inc. ^ | 461,945 | ||||||
12,284 | Consolidated Edison, Inc. | 936,655 | ||||||
7,055 | DTE Energy Co. | 887,590 | ||||||
7,304 | Entergy Corp. | 795,040 | ||||||
72,708 | NextEra Energy, Inc. | 5,350,582 | ||||||
11,371 | WEC Energy Group, Inc. | 1,079,676 | ||||||
11,585,087 | ||||||||
ELECTRICAL EQUIPMENT - 3.8% | ||||||||
8,632 | AMETEK, Inc. | 1,023,151 | ||||||
See accompanying notes to financial statements.
38
Inspire 100 ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
ELECTRICAL EQUIPMENT (continued) - 3.8% | ||||||||
10,790 | Amphenol Corp. | $ | 1,411,440 | |||||
15,272 | Fortive Corp. | 1,071,025 | ||||||
27,639 | Johnson Controls International PLC | 1,272,500 | ||||||
6,889 | Keysight Technologies, Inc. * | 826,956 | ||||||
5,605,072 | ||||||||
ENTERTAINMENT CONTENT - 1.0% | ||||||||
26,361 | Discovery, Inc. * ^ | 709,375 | ||||||
29,277 | Discovery, Inc. - Class C * | 703,234 | ||||||
1,412,609 | ||||||||
FOOD - 0.6% | ||||||||
4,897 | McCormick & Co., Inc. | 915,641 | ||||||
GAS & WATER UTILITIES - 0.2% | ||||||||
14,359 | NiSource, Inc. | 347,488 | ||||||
HEALTHCARE FACILITIES & SERVICES - 2.5% | ||||||||
8,051 | AmerisourceBergen Corp. | 830,139 | ||||||
22,161 | Centene Corp. * | 1,366,226 | ||||||
5,229 | Henry Schein, Inc. * | 336,277 | ||||||
7,044 | IQVIA Holdings, Inc. * | 1,190,366 | ||||||
3,723,008 | ||||||||
HOME CONSTRUCTION - 0.9% | ||||||||
13,197 | DR Horton, Inc. | 983,177 | ||||||
2,656 | Mohawk Industries, Inc. * | 334,204 | ||||||
1,317,381 | ||||||||
INDUSTRIAL SUPPORT SERVICES - 0.4% | ||||||||
2,739 | United Rentals, Inc. * | 621,698 | ||||||
INSURANCE - 0.8% | ||||||||
27,794 | Aflac, Inc. | 1,220,990 | ||||||
MACHINERY - 3.3% | ||||||||
20,999 | Caterpillar, Inc. | 3,645,216 | ||||||
4,980 | Parker-Hannifin Corp. | 1,330,955 | ||||||
4,976,171 | ||||||||
MEDICAL EQUIPMENT & DEVICES - 5.2% | ||||||||
11,371 | Agilent Technologies, Inc. | 1,329,270 | ||||||
3,237 | Align Technology, Inc. * | 1,557,936 | ||||||
22,078 | Edwards Lifesciences Corp. * | 1,852,123 | ||||||
5,561 | Illumina, Inc. * | 1,791,142 | ||||||
1,826 | Teleflex, Inc. | 698,902 | ||||||
2,490 | Waters Corp. * | 577,705 | ||||||
7,807,078 | ||||||||
METALS & MINING - 2.3% | ||||||||
27,556 | Newmont Goldcorp Corp. | 1,620,844 | ||||||
29,382 | Southern Copper Corp. | 1,744,409 | ||||||
3,365,253 | ||||||||
See accompanying notes to financial statements.
39
Inspire 100 ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
OIL & GAS PRODUCERS - 1.7% | ||||||||
9,545 | Cheniere Energy, Inc. * | $ | 541,106 | |||||
7,138 | Concho Resources, Inc. | 410,292 | ||||||
22,078 | EOG Resources Inc | 1,035,017 | ||||||
6,225 | Pioneer Natural Resources Co. | 626,110 | ||||||
2,612,525 | ||||||||
OIL & GAS SERVICES & EQUIPMENT - 1.3% | ||||||||
30,212 | Halliburton Co. | 501,217 | ||||||
14,442 | National Oilwell Varco, Inc. | 177,059 | ||||||
54,033 | Schlumberger NV | 1,123,346 | ||||||
16,185 | TechnipFMC PLC | 134,497 | ||||||
1,936,119 | ||||||||
REAL ESTATE INVESTMENT TRUSTS - 10.8% | ||||||||
4,731 | Alexandria Real Estate Equities, Inc. | 774,607 | ||||||
16,600 | American Tower Corp. | 3,837,920 | ||||||
16,019 | Crown Castle International Corp. | 2,684,304 | ||||||
3,071 | Equinix, Inc. | 2,142,913 | ||||||
15,178 | Equity Residential | 879,110 | ||||||
25,315 | Prologis, Inc. | 2,532,766 | ||||||
12,699 | Realty Income Corp. | 761,559 | ||||||
3,984 | SBA Communications Corp. | 1,144,125 | ||||||
11,609 | Simon Property Group, Inc. | 958,555 | ||||||
6,391 | WP Carey, Inc. | 442,321 | ||||||
16,158,180 | ||||||||
RETAIL - CONSUMER STAPLES - 4.4% | ||||||||
16,600 | Costco Wholesale Corp. | 6,503,382 | ||||||
RETAIL - DISCRETIONARY - 3.8% | ||||||||
27,556 | Lowe’s Cos, Inc. | 4,293,776 | ||||||
12,865 | Ross Stores, Inc. | 1,383,245 | ||||||
5,677,021 | ||||||||
SEMICONDUCTORS - 11.9% | ||||||||
14,193 | Analog Devices, Inc. | 1,973,962 | ||||||
22,244 | NVIDIA Corp. | 11,924,118 | ||||||
11,039 | NXP Semiconductors NV | 1,748,798 | ||||||
5,810 | Skyworks Solutions, Inc. | 820,198 | ||||||
8,632 | Xilinx, Inc. | 1,256,387 | ||||||
17,723,463 | ||||||||
SOFTWARE - 2.0% | ||||||||
3,403 | Palo Alto Networks, Inc. * | 1,000,210 | ||||||
9,545 | SS&C Technologies Holdings, Inc. | 657,555 | ||||||
5,633 | Synopsys, Inc. * | 1,281,507 | ||||||
2,939,272 | ||||||||
STEEL - 0.4% | ||||||||
11,122 | Nucor Corp. | 597,251 | ||||||
TECHNOLOGY HARDWARE - 1.2% | ||||||||
7,315 | Garmin Ltd. | 854,099 | ||||||
47,614 | Hewlett Packard Enterprise Co. | 525,658 | ||||||
See accompanying notes to financial statements.
40
Inspire 100 ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
TECHNOLOGY HARDWARE (continued) - 1.2% | ||||||||
8,466 | NetApp, Inc. | $ | 451,322 | |||||
1,831,079 | ||||||||
TECHNOLOGY SERVICES - 5.8% | ||||||||
18,343 | Cognizant Technology Solutions Corp. | 1,433,138 | ||||||
4,731 | Equifax, Inc. | 789,604 | ||||||
3,320 | Gartner, Inc. * | 504,640 | ||||||
10,873 | Global Payments, Inc. | 2,122,301 | ||||||
3,154 | MSCI, Inc. | 1,291,311 | ||||||
13,778 | Paychex, Inc. | 1,283,421 | ||||||
5,810 | Verisk Analytics, Inc. | 1,152,181 | ||||||
8,576,596 | ||||||||
TRANSPORTATION & LOGISTICS - 5.8% | ||||||||
29,299 | CSX Corp. ^ | 2,638,375 | ||||||
4,233 | JB Hunt Transport Services, Inc. | 572,640 | ||||||
26,964 | Union Pacific Corp. | 5,502,813 | ||||||
8,713,828 | ||||||||
TRANSPORTATION EQUIPMENT - 0.7% | ||||||||
12,273 | PACCAR, Inc. | 1,068,487 | ||||||
WHOLESALE - CONSUMER STAPLES - 0.9% | ||||||||
19,516 | Sysco Corp | 1,391,296 | ||||||
TOTAL COMMON STOCKS (Cost $120,579,983) | 147,657,645 | |||||||
COLLATERAL FOR SECURITIES LOANED - 1.1% ^^ | ||||||||
MONEY MARKET FUND - 1.1% | ||||||||
1,631,705 | Fidelity Government Portfolio - Institutional Class, to yield 0.01% + | 1,631,705 | ||||||
TOTAL MONEY MARKET FUND (Cost $1,631,705) | ||||||||
TOTAL INVESTMENTS - 100.0% (Cost $122,211,688) | $ | 149,289,350 | ||||||
OTHER ASSETS LESS LIABILITIES - 0.0% | 31,132 | |||||||
NET ASSETS - 100.0% | $ | 149,320,482 | ||||||
^ | All or a portion of this security is on loan as of November 30, 2020. The total value of securities on loan as of November 30, 2020 is $1,561,570. |
^^ | This security was purchased with cash collateral held from securities on loan. The total value of such security as of November 30, 2020 is $1,631,705. |
* | Non-Income producing security. |
+ | Money market fund; interest rate reflects seven-day effective yield on November 30, 2020. |
PLC - Public Limited Company
See accompanying notes to financial statements.
41
Inspire International ESG ETF |
PORTFOLIO OF INVESTMENTS |
November 30, 2020 |
Shares | Value | |||||||
COMMON STOCKS - 98.8% | ||||||||
AEROSPACE & DEFENSE - 0.7% | ||||||||
97,043 | Embraer SA - ADR ^ * | $ | 579,347 | |||||
APPAREL & TEXTILE PRODUCTS - 1.3% | ||||||||
6,290 | Cie Financiere Richemont SA | 524,433 | ||||||
1,908 | Swatch Group AG | 472,521 | ||||||
996,954 | ||||||||
ASSET MANAGEMENT - 2.1% | ||||||||
4,876 | Groupe Bruxelles Lambert SA | 476,413 | ||||||
309,679 | Melrose Industries PLC | 634,626 | ||||||
477 | Partners Group Holding AG | 513,725 | ||||||
1,624,764 | ||||||||
AUTOMOTIVE - 3.6% | ||||||||
5,194 | Aptiv PLC | 616,528 | ||||||
4,082 | Cie Generale des Etablissements Michelin | 510,018 | ||||||
16,112 | Nokian Renkaat OYJ | 567,788 | ||||||
48,230 | Tata Motors Ltd. - ADR ^ * | 575,866 | ||||||
14,151 | Valeo SA | 550,480 | ||||||
2,820,680 | ||||||||
BANKING - 12.8% | ||||||||
80,931 | Bank Hapoalim BM * | 530,651 | ||||||
97,096 | Bank Leumi Le-Israel | 545,861 | ||||||
88,192 | Commerzbank AG * | 549,631 | ||||||
9,699 | Commonwealth Bank of Australia | 565,090 | ||||||
48,972 | Credit Agricole SA | 566,706 | ||||||
33,602 | Danske Bank A/S | 555,398 | ||||||
9,116 | HDFC Bank Ltd. - ADR ^ * | 629,004 | ||||||
43,391 | ICICI Bank Ltd. - ADR * | 558,008 | ||||||
256,944 | Investec PLC | 636,670 | ||||||
8,692 | KBC Group NV | 607,207 | ||||||
5,053 | Macquarie Group Ltd. | 516,311 | ||||||
116,176 | Malayan Banking Bhd - ADR | 521,630 | ||||||
9,787 | mBank SA * ^ | 395,345 | ||||||
492,608 | Metropolitan Bank & Trust Co. | 491,276 | ||||||
36,729 | National Australia Bank Ltd. | 619,490 | ||||||
185,924 | Natixis SA | 573,798 | ||||||
78,387 | Nedbank Group Ltd. | 620,461 | ||||||
27,030 | Raiffeisen Bank International AG | 519,273 | ||||||
10,001,810 | ||||||||
CHEMICALS - 7.6% | ||||||||
2,756 | A ir Liquide SA | 453,795 | ||||||
2,412,193 | AKR Corporindo Tbk PT | 497,130 | ||||||
4,452 | AKZO Nobel NV | 474,288 | ||||||
3,975 | Arkema SA | 464,649 | ||||||
6,837 | Brenntag AG | 523,910 | ||||||
5,618 | Croda International PLC | 446,719 | ||||||
See accompanying notes to financial statements.
42
Inspire International ESG ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
CHEMICALS (continued) - 7.6% | ||||||||
106 | Givaudan SA | $ | 433,695 | |||||
124,921 | ICL Group Ltd. | 593,431 | ||||||
11,713 | Imerys SA | 481,982 | ||||||
14,734 | Johnson Matthey PLC | 437,475 | ||||||
69,695 | K+S AG | 629,771 | ||||||
5,936 | LyondellBasell Industries NV | 505,154 | ||||||
5,941,999 | ||||||||
COMMERCIAL SUPPORT SERVICES - 3.1% | ||||||||
19,281 | Bureau Veritas SA | 499,104 | ||||||
9,275 | Edenred | 531,772 | ||||||
159,758 | G4S PLC | 471,360 | ||||||
5,459 | Intertek Group PLC | 402,446 | ||||||
8,745 | Randstad Holding NV | 543,960 | ||||||
2,448,642 | ||||||||
CONSTRUCTION MATERIALS - 1.4% | ||||||||
19,928 | James Hardie Industries PLC - ADR | 579,282 | ||||||
9,599 | LafargeHolcim Ltd. | 505,344 | ||||||
1,084,626 | ||||||||
CONSUMER SERVICES - 0.5% | ||||||||
420,926 | Cogna Educacao - ADR | 349,495 | ||||||
CONTAINERS & PACKAGING - 1.2% | ||||||||
40,174 | AMCOR PLC - ADR | 450,546 | ||||||
56,985 | Brambles Ltd. | 460,204 | ||||||
910,750 | ||||||||
DIVERSIFIED INDUSTRIALS - 1.3% | ||||||||
19,575 | Alfa Laval AB | 495,228 | ||||||
9,752 | Pentair PLC | 505,349 | ||||||
1,000,577 | ||||||||
ELECTRIC UTILITIES - 3.5% | ||||||||
367,834 | Aboitiz Equity Ventures, Inc. | 322,849 | ||||||
44,202 | AGL Energy Ltd. | 439,698 | ||||||
227,399 | Cia Energetica de Minas Gerais - ADR ^ | 550,306 | ||||||
48,447 | Enel SpA | 485,061 | ||||||
135,998 | Origin Energy Ltd. | 519,089 | ||||||
41,870 | Tenaga Nasional Bhd - ADR | 393,578 | ||||||
2,710,581 | ||||||||
ELECTRICAL EQUIPMENT - 3.6% | ||||||||
17,437 | ABB Ltd. | 461,687 | ||||||
4,505 | Allegion PLC | 513,750 | ||||||
10,600 | Johnson Controls International PLC | 488,024 | ||||||
5,088 | Kone OYJ | 427,987 | ||||||
15,264 | Prysmian SpA | 500,839 | ||||||
1,590 | Schindler Holding AG | 435,568 | ||||||
2,827,855 | ||||||||
See accompanying notes to financial statements.
43
Inspire International ESG ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
ENGINEERING & CONSTRUCTION - 1.3% | ||||||||
21,617 | Boskalis Westminster | $ | 500,358 | |||||
5,141 | Vinci SA | 525,797 | ||||||
1,026,155 | ||||||||
FOOD - 1.2% | ||||||||
18,497 | Associated British Foods PLC | 521,053 | ||||||
44,732 | Orkla ASA | 430,319 | ||||||
951,372 | ||||||||
FORESTRY, PAPER & WOOD PRODUCTS - 0.6% | ||||||||
14,191 | UPM-Kymmene OYJ | 468,857 | ||||||
GAS & WATER UTILITIES - 0.5% | ||||||||
50,509 | Cia de Saneamento Basico do Estado de Sao Paulo - ADR | 419,225 | ||||||
HEALTHCARE FACILITIES & SERVICES - 0.6% | ||||||||
9,230 | Ramsay Health Care Ltd. | 428,811 | ||||||
HOME CONSTRUCTION - 1.3% | ||||||||
742 | Geberit AG | 448,331 | ||||||
15,211 | Persimmon PLC | 539,366 | ||||||
987,697 | ||||||||
INDUSTRIAL SUPPORT SERVICES - 1.3% | ||||||||
4,770 | Ferguson PLC | 536,457 | ||||||
35,828 | Rexel SA | 485,361 | ||||||
1,021,818 | ||||||||
INSTITUTIONAL FINANCIAL SERVICES - 0.6% | ||||||||
3,981 | London Stock Exchange Group PLC | 430,821 | ||||||
INSURANCE - 4.2% | ||||||||
123,298 | Direct Line Insurance Group PLC | 486,914 | ||||||
22,101 | Gjensidige Forsikring ASA | 483,364 | ||||||
136,634 | Insurance Australia Group Ltd. | 518,496 | ||||||
193,026 | Legal & General Group PLC | 651,207 | ||||||
75,472 | RSA Insurance Group PLC * | 679,116 | ||||||
9,706 | Sampo OYJ | 420,642 | ||||||
3,239,739 | ||||||||
INTERNET MEDIA & SERVICES - 1.3% | ||||||||
2,544 | Naspers Ltd. | 514,340 | ||||||
15,930 | Trip.com Group Ltd. - ADR * | 535,089 | ||||||
1,049,429 | ||||||||
LEISURE FACILITIES & SERVICES - 0.9% | ||||||||
16,801 | Whitbread PLC | 679,859 | ||||||
MACHINERY - 1.3% | ||||||||
33,443 | IMI PLC | 499,166 | ||||||
22,048 | Sandvik AB | 496,030 | ||||||
995,196 | ||||||||
See accompanying notes to financial statements.
44
Inspire International ESG ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
MEDICAL EQUIPMENT & DEVICES - 4.1% | ||||||||
3,125 | Cochlear Ltd. | $ | 507,552 | |||||
2,862 | Coloplast A/S | 428,484 | ||||||
14,970 | Demant A/S * | 565,360 | ||||||
3,498 | EssilorLuxottica SA | 507,766 | ||||||
23,638 | Smith & Nephew PLC | 457,906 | ||||||
108,122 | Top Glove Corp Bhd - ADR | 717,930 | ||||||
3,184,998 | ||||||||
METALS & MINING - 7.7% | ||||||||
5,579,734 | Adaro Energy Tbk PT | 549,280 | ||||||
18,102 | Anglo American PLC | 534,939 | ||||||
32,330 | Antofagasta PLC | 541,038 | ||||||
20,276 | BHP Group PLC | 459,802 | ||||||
14,522 | Boliden AB | 501,915 | ||||||
38,478 | Fortescue Metals Group Ltd. | 516,866 | ||||||
26,924 | Fresnillo PLC | 378,320 | ||||||
171,349 | Grupo Mexico SAB de CV | 624,818 | ||||||
19,398 | Newcrest Mining Ltd. | 384,922 | ||||||
158,682 | Norsk Hydro ASA | 645,005 | ||||||
7,208 | Rio Tinto PLC | 465,178 | ||||||
64,077 | Vedanta Ltd. - ADR ^ | 420,345 | ||||||
6,022,428 | ||||||||
OIL & GAS PRODUCERS - 3.7% | ||||||||
26,447 | Ampol Ltd. | 597,291 | ||||||
52,788 | Eni SpA | 524,293 | ||||||
28,484 | Equinor ASA | 450,902 | ||||||
7,473 | Koninklijke Vopak NV | 393,593 | ||||||
55,915 | Petroleo Brasileiro SA - ADR | 535,107 | ||||||
107,537 | Ultrapar Participacoes SA - ADR | 406,490 | ||||||
2,907,676 | ||||||||
OIL & GAS SERVICES & EQUIPMENT - 0.7% | ||||||||
64,554 | TechnipFMC PLC | 536,444 | ||||||
REAL ESTATE INVESTMENT TRUSTS - 4.4% | ||||||||
103,880 | British Land Co. PLC | 654,178 | ||||||
6,572 | Covivio | 538,508 | ||||||
71,285 | Dexus | 513,183 | ||||||
33,867 | Goodman Group | 466,158 | ||||||
156,615 | GPT Group | 544,696 | ||||||
299,841 | Hammerson PLC | 86,586 | ||||||
67,999 | Land Securities Group PLC | 596,983 | ||||||
3,400,292 | ||||||||
REAL ESTATE OWNERS & DEVELOPERS - 1.9% | ||||||||
24,582 | Ayala Corp. | 421,033 | ||||||
591,646 | Ayala Land, Inc. | 467,607 | ||||||
300,881 | Mirvac Group | 571,997 | ||||||
1,460,637 | ||||||||
See accompanying notes to financial statements.
45
Inspire International ESG ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
RENEWABLE ENERGY - 0.8% | ||||||||
2,915 | Vestas Wind Systems A/S | $ | 597,522 | |||||
RETAIL - CONSUMER STAPLES - 1.1% | ||||||||
31,415 | Cia Brasileira de Distribuicao - ADR | 399,913 | ||||||
192,072 | Wm Morrison Supermarkets PLC | 461,182 | ||||||
861,095 | ||||||||
RETAIL - DISCRETIONARY - 2.7% | ||||||||
118,826 | Kingfisher PLC * | 434,036 | ||||||
334,483 | Marks & Spencer Group PLC | 561,539 | ||||||
5,724 | Next PLC | 500,693 | ||||||
5,989 | Pandora A/S | 601,547 | ||||||
2,097,815 | ||||||||
SEMICONDUCTORS - 2.9% | ||||||||
1,219 | ASML Holding NV | 530,555 | ||||||
16,006 | Infineon Technologies AG | 565,201 | ||||||
3,553 | NXP Semiconductors NV | 562,866 | ||||||
14,734 | STMicroelectronics NV - ADR ^ | 584,203 | ||||||
2,242,825 | ||||||||
SOFTWARE - 0.5% | ||||||||
47,806 | Sage Group PLC | 386,132 | ||||||
SPECIALTY FINANCE - 0.0% | ||||||||
1,663 | Isracard Ltd. | 5,428 | ||||||
TECHNOLOGY HARDWARE - 0.6% | ||||||||
40,333 | Telefonaktiebolaget LM Ericsson | 494,624 | ||||||
TECHNOLOGY SERVICES - 1.2% | ||||||||
32,012 | Infosys Ltd. - ADR | 487,222 | ||||||
92,856 | Wipro Ltd. - ADR | 478,208 | ||||||
965,430 | ||||||||
TELECOMMUNICATIONS - 1.1% | ||||||||
49,078 | Mobile TeleSystems PJSC | 423,543 | ||||||
51,198 | Telefonica Brasil SA | 447,982 | ||||||
871,525 | ||||||||
TRANSPORTATION & LOGISTICS - 6.3% | ||||||||
4,505 | Aeroports de Paris | 570,683 | ||||||
157,463 | Babcock International Group PLC | 710,337 | ||||||
70,278 | easyJet PLC | 755,664 | ||||||
10,812 | Fraport AG Frankfurt Airport Services | 615,367 | ||||||
40,651 | Grupo Aeroportuario del Sureste SAB de CV * | 607,249 | ||||||
2,279 | Kuehne + Nagel International AG | 517,829 | ||||||
141,351 | Royal Mail PLC | 580,663 | ||||||
5,565 | Ryanair Holdings PLC - ADR * | 577,480 | ||||||
4,935,272 | ||||||||
See accompanying notes to financial statements.
46
Inspire International ESG ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
TRANSPORTATION EQUIPMENT - 0.7% | ||||||||
23,267 | Volvo AB | $ | 535,021 | |||||
WHOLESALE - DISCRETIONARY - 0.6% | ||||||||
14,098 | Bunzl PLC | 444,000 | ||||||
TOTAL COMMON STOCKS (Cost $65,215,104) | 76,946,223 | |||||||
STOCK WARRANT - 0.0% | ||||||||
APPAREL & TEXTILE PRODUCTS - 0.0% | ||||||||
12,580 | Cie Financiere Richemont SA* | 2,501 | ||||||
TOTAL STOCK WARRANT (Cost $6,914) | ||||||||
COLLATERAL FOR SECURITIES LOANED - 2.3% ^^ | ||||||||
MONEY MARKET FUND - 2.3% | ||||||||
1,780,736 | Fidelity Government Portfolio - Institutional Class, to yield 0.01% + | 1,780,736 | ||||||
TOTAL MONEY MARKET FUND (Cost $1,780,736) | ||||||||
TOTAL INVESTMENTS - 101.1% (Cost $67,002,754) | $ | 78,729,460 | ||||||
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.1)% | (827,665 | ) | ||||||
NET ASSETS - 100.0% | $ | 77,901,795 | ||||||
^ | All or a portion of this security is on loan as of November 30, 2020. The total value of securities on loan as of November 30, 2020 is $1,706,942. |
^^ | This security was purchased with cash collateral held from securities on loan. The total value of such security as of November 30, 2020 is $1,780,736. |
* | Non-Income producing security. |
+ | Money market fund; interest rate reflects seven-day effective yield on November 30, 2020. |
ADR - American Depositary Receipt
PLC - Public Limited Company
See accompanying notes to financial statements.
47
Inspire Tactical Balanced ESG ETF |
PORTFOLIO OF INVESTMENTS |
November 30, 2020 |
Shares | Value | |||||||
COMMON STOCKS - 79.3% | ||||||||
AUTOMOTIVE - 0.7% | ||||||||
3,924 | Aptiv PLC | $ | 465,779 | |||||
BANKING - 0.7% | ||||||||
13,843 | Regions Financial Corp. | 211,383 | ||||||
763 | SVB Financial Group * | 263,128 | ||||||
474,511 | ||||||||
BIOTECHNOLOGY & PHARMACEUTICALS - 4.4% | ||||||||
3,161 | Alexion Pharmaceuticals, Inc. * | 385,990 | ||||||
1,526 | Regeneron Pharmaceuticals, Inc. * | 787,462 | ||||||
3,706 | Vertex Pharmaceuticals, Inc. * | 844,042 | ||||||
6,867 | Zoetis Inc | 1,101,329 | ||||||
3,118,823 | ||||||||
CHEMICALS - 0.2% | ||||||||
1,526 | International Flavors & Fragrances, Inc. | 171,065 | ||||||
COMMERCIAL SUPPORT SERVICES - 2.4% | ||||||||
1,526 | Cintas Corp. | 542,188 | ||||||
4,578 | Republic Services, Inc. | 442,784 | ||||||
6,104 | Waste Management, Inc. | 727,170 | ||||||
1,712,142 | ||||||||
CONSTRUCTION MATERIALS - 0.7% | ||||||||
872 | Martin Marietta Materials, Inc. | 231,629 | ||||||
1,962 | Vulcan Materials Co. | 273,993 | ||||||
505,622 | ||||||||
CONTAINERS & PACKAGING - 0.8% | ||||||||
5,668 | International Paper Co. | 280,453 | ||||||
2,180 | Sealed Air Corp. | 98,231 | ||||||
3,706 | Westrock Co. | 156,430 | ||||||
535,114 | ||||||||
DIVERSIFIED INDUSTRIALS - 5.5% | ||||||||
2,071 | Dover Corp. | 252,724 | ||||||
8,611 | Emerson Electric Co. | 661,497 | ||||||
10,137 | Honeywell International, Inc. | 2,067,137 | ||||||
4,578 | Illinois Tool Works, Inc. | 966,370 | ||||||
3,947,728 | ||||||||
ELECTRIC UTILITIES - 6.3% | ||||||||
3,597 | Alliant Energy Corp. | 189,202 | ||||||
7,194 | American Electric Power Co., Inc. | 610,699 | ||||||
7,848 | CenterPoint Energy, Inc. | 181,995 | ||||||
4,796 | Consolidated Edison, Inc. | 365,695 | ||||||
2,725 | DTE Energy Co. | 342,832 | ||||||
2,834 | Entergy Corp. | 308,481 | ||||||
28,231 | NextEra Energy, Inc. | 2,077,519 | ||||||
4,578 | WEC Energy Group, Inc. | 434,681 | ||||||
4,511,104 | ||||||||
ELECTRICAL EQUIPMENT - 2.9% | ||||||||
2,610 | AMETEK, Inc. | 309,363 | ||||||
4,360 | Amphenol Corp. | 570,332 | ||||||
4,905 | Fortive Corp. | 343,988 | ||||||
10,682 | Johnson Controls International PLC | 491,799 | ||||||
2,725 | Keysight Technologies, Inc. * | 327,109 | ||||||
2,042,591 | ||||||||
See accompanying notes to financial statements.
48
Inspire Tactical Balanced ESG ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
ENTERTAINMENT CONTENT - 0.7% | ||||||||
9,483 | Discovery, Inc. * | $ | 255,188 | |||||
10,464 | Discovery, Inc. * - Class C | 251,345 | ||||||
506,533 | ||||||||
FOOD - 0.5% | ||||||||
1,962 | McCormick & Co., Inc. | 366,855 | ||||||
GAS & WATER UTILITIES - 0.2% | ||||||||
5,559 | NiSource, Inc. | 134,528 | ||||||
HEALTHCARE FACILITIES & SERVICES - 2.0% | ||||||||
2,943 | AmerisourceBergen Corp. | 303,453 | ||||||
8,393 | Centene Corp. * | 517,428 | ||||||
2,071 | Henry Schein, Inc. * | 133,186 | ||||||
2,725 | IQVIA Holdings, Inc. * | 460,498 | ||||||
1,414,565 | ||||||||
HOME CONSTRUCTION - 0.7% | ||||||||
5,232 | DR Horton, Inc. | 389,784 | ||||||
981 | Mohawk Industries, Inc. * | 123,439 | ||||||
513,223 | ||||||||
INDUSTRIAL SUPPORT SERVICES - 0.4% | ||||||||
1,090 | United Rentals, Inc. * | 247,408 | ||||||
INSURANCE - 0.6% | ||||||||
10,137 | Aflac, Inc. | 445,318 | ||||||
MACHINERY - 2.6% | ||||||||
7,848 | Caterpillar, Inc. | 1,362,334 | ||||||
1,853 | Parker-Hannifin Corp. | 495,233 | ||||||
1,857,567 | ||||||||
MEDICAL EQUIPMENT & DEVICES - 4.1% | ||||||||
4,469 | Agilent Technologies, Inc. | 522,426 | ||||||
1,090 | Align Technology, Inc. * | 524,606 | ||||||
8,938 | Edwards Lifesciences Corp. * | 749,809 | ||||||
2,071 | Illumina, Inc. * | 667,048 | ||||||
654 | Teleflex, Inc. | 250,319 | ||||||
872 | Waters Corp. * | 202,313 | ||||||
2,916,521 | ||||||||
METALS & MINING - 1.9% | ||||||||
11,554 | Newmont Corp. | 679,606 | ||||||
11,118 | Southern Copper Corp. | 660,076 | ||||||
1,339,682 | ||||||||
OIL & GAS PRODUCERS - 1.4% | ||||||||
3,597 | Cheniere Energy, Inc. * | 203,914 | ||||||
2,834 | Concho Resources, Inc. | 162,898 | ||||||
8,393 | EOG Resources, Inc. | 393,464 | ||||||
2,398 | Pioneer Natural Resources Co. | 241,191 | ||||||
1,001,467 | ||||||||
OIL & GAS SERVICES & EQUIPMENT - 1.0% | ||||||||
12,753 | Halliburton Co. | 211,572 | ||||||
5,559 | National Oilwell Varco, Inc. | 68,153 | ||||||
20,056 | Schlumberger NV | 416,964 | ||||||
6,431 | TechnipFMC PLC | 53,442 | ||||||
750,131 | ||||||||
See accompanying notes to financial statements.
49
Inspire Tactical Balanced ESG ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
REAL ESTATE INVESTMENT TRUSTS - 9.0% | ||||||||
1,962 | Alexandria Real Estate Equities, Inc. | $ | 321,238 | |||||
6,393 | American Tower Corp. | 1,478,062 | ||||||
6,213 | Crown Castle International Corp. | 1,041,112 | ||||||
1,308 | Equinix, Inc. | 912,709 | ||||||
5,341 | Equity Residential | 309,351 | ||||||
10,682 | Prologis, Inc. | 1,068,734 | ||||||
5,014 | Realty Income Corp. | 300,690 | ||||||
1,635 | SBA Communications Corp. | 469,539 | ||||||
4,360 | Simon Property Group, Inc. | 360,005 | ||||||
2,507 | WP Carey, Inc. | 173,509 | ||||||
6,434,949 | ||||||||
RETAIL - CONSUMER STAPLES - 3.5% | ||||||||
6,322 | Costco Wholesale Corp. | 2,476,770 | ||||||
RETAIL - DISCRETIONARY - 3.1% | ||||||||
10,900 | Lowe’s Cos., Inc. | 1,698,438 | ||||||
5,123 | Ross Stores, Inc. | 550,825 | ||||||
2,249,263 | ||||||||
SEMICONDUCTORS - 9.7% | ||||||||
5,341 | Analog Devices, Inc. | 742,826 | ||||||
8,829 | NVIDIA Corp. | 4,732,874 | ||||||
4,033 | NXP Semiconductors NV | 638,908 | ||||||
2,398 | Skyworks Solutions, Inc. | 338,526 | ||||||
3,488 | Xilinx, Inc. | 507,678 | ||||||
6,960,812 | ||||||||
SOFTWARE - 1.6% | ||||||||
1,417 | Palo Alto Networks, Inc. * | 416,485 | ||||||
3,706 | SS&C Technologies Holdings, Inc. | 255,306 | ||||||
2,180 | Synopsys, Inc. * | 495,950 | ||||||
1,167,741 | ||||||||
STEEL - 0.3% | ||||||||
4,360 | Nucor Corp. | 234,132 | ||||||
TECHNOLOGY HARDWARE - 1.0% | ||||||||
2,725 | Garmin Ltd. | 318,171 | ||||||
18,530 | Hewlett Packard Enterprise Co. | 204,571 | ||||||
3,161 | NetApp, Inc. | 168,513 | ||||||
691,255 | ||||||||
TECHNOLOGY SERVICES - 4.7% | ||||||||
7,739 | Cognizant Technology Solutions Corp. | 604,648 | ||||||
1,744 | Equifax, Inc. | 291,074 | ||||||
1,308 | Gartner, Inc. * | 198,816 | ||||||
4,360 | Global Payments, Inc. | 851,028 | ||||||
1,199 | MSCI, Inc. | 490,895 | ||||||
5,123 | Paychex, Inc. | 477,207 | ||||||
2,289 | Verisk Analytics, Inc. | 453,932 | ||||||
3,367,600 | ||||||||
TRANSPORTATION & LOGISTICS - 4.4% | ||||||||
11,009 | CSX Corp. | 991,361 | ||||||
1,526 | JB Hunt Transport Services, Inc. | 206,437 | ||||||
9,701 | Union Pacific Corp. | 1,979,780 | ||||||
3,177,578 | ||||||||
TRANSPORTATION EQUIPMENT - 0.6% | ||||||||
5,014 | PACCAR, Inc. | 436,519 | ||||||
See accompanying notes to financial statements.
50
Inspire Tactical Balanced ESG ETF |
PORTFOLIO OF INVESTMENTS (Continued) |
November 30, 2020 |
Shares | Value | |||||||
WHOLESALE - CONSUMER STAPLES - 0.7% | ||||||||
7,303 | Sysco Corp. | $ | 520,631 | |||||
TOTAL COMMON STOCKS (Cost $54,795,648) | 56,695,527 | |||||||
EXCHANGE TRADED FUND - 19.6% | ||||||||
FIXED INCOME - 19.6% | ||||||||
200,669 | Vanguard Intermediate-Term Treasury ETF | 14,050,843 | ||||||
TOTAL EXCHANGE TRADED FUND (Cost $14,124,443) | ||||||||
TOTAL INVESTMENTS - 98.9% (Cost $68,920,091) | $ | 70,746,370 | ||||||
OTHER ASSETS LESS LIABILITIES - 1.1% | 805,928 | |||||||
NET ASSETS - 100.0% | $ | 71,552,298 | ||||||
* | Non-Income producing security. |
PLC - Public Limited Company
See accompanying notes to financial statements.
51
The Inspire ETFs |
STATEMENTS OF ASSETS AND LIABILITIES |
November 30, 2020 |
Inspire Global Hope ETF | Inspire Small/Mid Cap Impact ETF | Inspire Corporate Bond Impact ETF | ||||||||||
ASSETS | ||||||||||||
Investment securities: | ||||||||||||
At cost | $ | 108,283,090 | $ | 86,816,271 | $ | 155,465,239 | ||||||
At value | $ | 122,704,680 | $ | 98,703,235 | $ | 160,444,444 | ||||||
Cash | 1,060,804 | 398,358 | 5,175,006 | |||||||||
Foreign currencies (Cost $148,098, $0, and $0, respectively) | 151,180 | — | — | |||||||||
Dividends and interest receivable | 392,495 | 109,219 | 1,361,726 | |||||||||
Receivable for Fund shares sold | — | — | 2,648,320 | |||||||||
Prepaid expenses | 5,584 | 3,243 | 6,098 | |||||||||
TOTAL ASSETS | 124,314,743 | 99,214,055 | 169,635,594 | |||||||||
LIABILITIES | ||||||||||||
Payable for investments purchased | — | — | 2,543,395 | |||||||||
Securities lending collateral payable | 3,737,730 | 13,147,841 | — | |||||||||
Distributions payable | — | — | 146,940 | |||||||||
Investment advisory fees payable | 28,315 | 20,552 | 39,719 | |||||||||
Custody fees payable | 40,879 | 19,458 | 16,975 | |||||||||
Payable to related parties | 25,751 | 14,278 | 30,257 | |||||||||
Accrued expenses and other liabilities | 29,082 | 24,053 | 29,637 | |||||||||
TOTAL LIABILITIES | 3,861,757 | 13,226,182 | 2,806,923 | |||||||||
NET ASSETS | $ | 120,452,986 | $ | 85,987,873 | $ | 166,828,671 | ||||||
Net Assets Consist Of: | ||||||||||||
Paid in capital | $ | 110,598,613 | $ | 91,468,249 | $ | 162,154,620 | ||||||
Accumulated earnings/ (deficit) | 9,854,373 | (5,480,376 | ) | 4,674,051 | ||||||||
NET ASSETS | $ | 120,452,986 | $ | 85,987,873 | $ | 166,828,671 | ||||||
Net Asset Value Per Share: | ||||||||||||
Net Assets | $ | 120,452,986 | $ | 85,987,873 | $ | 166,828,671 | ||||||
Shares of beneficial interest outstanding ($0 par value, unlimited shares authorized) | 3,750,000 | 3,100,000 | 6,300,000 | |||||||||
Net asset value, offering and redemption price per share (Net Assets ÷ Shares Outstanding) | $ | 32.12 | $ | 27.74 | (a) | $ | 26.48 |
(a) | The NAV shown above differs from the traded NAV on November 30, 2020 due to financial statement rounding and/or financial statement adjustments. |
See accompanying notes to financial statements.
52
The Inspire ETFs |
STATEMENTS OF ASSETS AND LIABILITIES |
November 30, 2020 |
Inspire 100 ETF | Inspire International ESG ETF | Inspire Tactical Balanced ESG ETF | ||||||||||
ASSETS | ||||||||||||
Investment securities: | ||||||||||||
At cost | $ | 122,211,688 | $ | 67,002,754 | $ | 68,920,091 | ||||||
At value | $ | 149,289,350 | $ | 78,729,460 | $ | 70,746,370 | ||||||
Cash | 1,504,344 | 643,249 | 812,104 | |||||||||
Foreign currencies (Cost $0, $235,527, and $0, respectively) | — | 242,273 | — | |||||||||
Dividends and interest receivable | 209,526 | 186,595 | 72,090 | |||||||||
Prepaid expenses | 4,700 | 2,028 | — | |||||||||
TOTAL ASSETS | 151,007,920 | 79,803,605 | 71,630,564 | |||||||||
LIABILITIES | ||||||||||||
Securities lending collateral payable | 1,631,705 | 1,780,736 | — | |||||||||
Investment advisory fees payable | 18,254 | 26,559 | 28,180 | |||||||||
Custody fees payable | 16,462 | 39,172 | 11,892 | |||||||||
Payable to related parties | 18,692 | 26,101 | 11,789 | |||||||||
Accrued expenses and other liabilities | 2,325 | 29,242 | 26,405 | |||||||||
TOTAL LIABILITIES | 1,687,438 | 1,901,810 | 78,266 | |||||||||
NET ASSETS | $ | 149,320,482 | $ | 77,901,795 | $ | 71,552,298 | ||||||
Net Assets Consist Of: | ||||||||||||
Paid in capital | $ | 121,226,587 | $ | 67,171,433 | $ | 67,775,932 | ||||||
Accumulated earnings | 28,093,895 | 10,730,362 | 3,776,366 | |||||||||
NET ASSETS | $ | 149,320,482 | $ | 77,901,795 | $ | 71,552,298 | ||||||
Net Asset Value Per Share: | ||||||||||||
Net Assets | $ | 149,320,482 | $ | 77,901,795 | $ | 71,552,298 | ||||||
Shares of beneficial interest outstanding ($0 par value, unlimited shares authorized) | 4,150,000 | 2,650,000 | 2,725,000 | |||||||||
Net asset value, offering and redemption price per share (Net Assets ÷ Shares Outstanding) | $ | 35.98 | $ | 29.40 | $ | 26.26 |
See accompanying notes to financial statements.
53
The Inspire ETFs |
STATEMENTS OF OPERATIONS |
For the Year Ended November 30, 2020 |
Inspire Global Hope ETF | Inspire Small/Mid Cap Impact ETF | Inspire Corporate Bond Impact ETF | ||||||||||
INVESTMENT INCOME | ||||||||||||
Dividends | $ | 3,006,508 | $ | 1,410,084 | $ | — | ||||||
Interest | 11,404 | 3,512 | 3,001,602 | |||||||||
Securities lending income | 28,947 | 219,192 | 296 | |||||||||
Less: Foreign withholding taxes | (107,760 | ) | (2,210 | ) | — | |||||||
TOTAL INVESTMENT INCOME | 2,939,099 | 1,630,578 | 3,001,898 | |||||||||
EXPENSES | ||||||||||||
Investment advisory fees | 364,008 | 229,910 | 401,073 | |||||||||
Custodian fees | 115,443 | 22,538 | 13,514 | |||||||||
Administrative services | 91,739 | 61,827 | 98,246 | |||||||||
Printing and postage expenses | 28,196 | 23,428 | 25,611 | |||||||||
Trustees fees and expenses | 26,978 | 18,237 | 21,399 | |||||||||
Legal fees | 25,081 | 19,868 | 20,415 | |||||||||
Professional fees | 17,881 | 12,454 | 17,079 | |||||||||
Audit fees | 16,082 | 13,788 | 17,878 | |||||||||
Transfer agent fees | 13,627 | 11,451 | 13,714 | |||||||||
Insurance expense | 7,302 | 4,161 | 6,101 | |||||||||
Other Expenses | 28,780 | 17,353 | 24,772 | |||||||||
TOTAL EXPENSES | 735,117 | 435,015 | 659,802 | |||||||||
Plus: Recapture of fees waived/expenses reimbursed by the Adviser | — | 24,621 | — | |||||||||
NET EXPENSES | 735,117 | 459,636 | 659,802 | |||||||||
NET INVESTMENT INCOME | 2,203,982 | 1,170,942 | 2,342,096 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||
Net realized gain (loss) on: | ||||||||||||
In-kind redemptions | 9,545,412 | 8,152,071 | 3,267,953 | |||||||||
Investments | (4,096,977 | ) | (16,686,396 | ) | (448,878 | ) | ||||||
Foreign currency transactions | 15,138 | 27 | — | |||||||||
5,463,573 | (8,534,298 | ) | 2,819,075 | |||||||||
Net change in unrealized appreciation on: | ||||||||||||
Investments | 1,612,596 | 6,062,398 | 1,038,258 | |||||||||
Foreign currency translations | 14,261 | 5 | — | |||||||||
1,626,857 | 6,062,403 | 1,038,258 | ||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | 7,090,430 | (2,471,895 | ) | 3,857,333 | ||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 9,294,412 | $ | (1,300,953 | ) | $ | 6,199,429 |
See accompanying notes to financial statements.
54
The Inspire ETFs |
STATEMENTS OF OPERATIONS |
For the Year and Period Ended November 30, 2020 |
Inspire 100 ETF | Inspire International ESG ETF | Inspire Tactical Balanced ESG ETF* | ||||||||||
INVESTMENT INCOME | ||||||||||||
Dividends | $ | 1,676,045 | $ | 1,154,834 | $ | 402,948 | ||||||
Securities lending income | 3,712 | 17,848 | 361 | |||||||||
Less: Foreign withholding taxes | — | (94,637 | ) | (78 | ) | |||||||
TOTAL INVESTMENT INCOME | 1,679,757 | 1,078,045 | 403,231 | |||||||||
EXPENSES | ||||||||||||
Investment advisory fees | 303,072 | 202,999 | 123,727 | |||||||||
Administrative services | 64,987 | 67,671 | 16,121 | |||||||||
Printing and postage expenses | 21,501 | 15,582 | 10,868 | |||||||||
Trustees fees and expenses | 18,014 | 10,096 | 4,033 | |||||||||
Audit fees | 14,394 | 25,012 | 14,785 | |||||||||
Transfer agent fees | 13,681 | 15,032 | 5,041 | |||||||||
Legal fees | 12,418 | 21,354 | 11,007 | |||||||||
Professional fees | 11,960 | 8,245 | 2,552 | |||||||||
Custodian fees | 6,948 | 44,302 | 8,392 | |||||||||
Insurance expense | 3,001 | 366 | 113 | |||||||||
Other Expenses | 17,353 | 14,350 | 4,119 | |||||||||
TOTAL EXPENSES | 487,329 | 425,009 | 200,758 | |||||||||
Less: Fees waived/expenses reimbursed by the Adviser | (133,196 | ) | — | — | ||||||||
NET EXPENSES | 354,133 | 425,009 | 200,758 | |||||||||
NET INVESTMENT INCOME | 1,325,624 | 653,036 | 202,473 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||
Net realized gain (loss) on: | ||||||||||||
In-kind redemptions | 4,206,025 | 546,694 | (759,725 | ) | ||||||||
Investments | 2,298,761 | (1,081,198 | ) | 1,734,970 | ||||||||
Foreign currency transactions | — | 5,246 | — | |||||||||
6,504,786 | (529,258 | ) | 975,245 | |||||||||
Net change in unrealized appreciation on: | ||||||||||||
Investments | 16,624,890 | 10,858,881 | 1,826,279 | |||||||||
Foreign currency translations | — | 13,614 | — | |||||||||
16,624,890 | 10,872,495 | 1,826,279 | ||||||||||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS | 23,129,676 | 10,343,237 | 2,801,524 | |||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 24,455,300 | $ | 10,996,273 | $ | 3,003,997 |
* | The Inspire Tactical Balanced ESG ETF commenced operations on July 15, 2020. |
See accompanying notes to financial statements.
55
Inspire Global Hope ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Year Ended | Year Ended | |||||||
November 30, 2020 | November 30, 2019 | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 2,203,982 | $ | 3,216,723 | ||||
Net realized gain (loss) on investments and foreign currency transactions | 5,463,573 | (998,557 | ) | |||||
Net change in unrealized appreciation on investments and foreign currency translations | 1,626,857 | 15,160,171 | ||||||
Net increase in net assets resulting from operations | 9,294,412 | 17,378,337 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid: | (2,471,705 | ) | (3,508,625 | ) | ||||
Net decrease in net assets resulting from distributions to shareholders | (2,471,705 | ) | (3,508,625 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 11,457,950 | 68,599,110 | ||||||
Cost of shares redeemed | (58,500,651 | ) | (9,566,081 | ) | ||||
Net increase (decrease) in net assets resulting from shares of beneficial interest | (47,042,701 | ) | 59,033,029 | |||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | (40,219,994 | ) | 72,902,741 | |||||
NET ASSETS | ||||||||
Beginning of Year | 160,672,980 | 87,770,239 | ||||||
End of Year | $ | 120,452,986 | $ | 160,672,980 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 450,000 | 2,500,000 | ||||||
Shares Redeemed | (2,200,000 | ) | (350,000 | ) | ||||
Net increase (decrease) in shares of beneficial interest outstanding | (1,750,000 | ) | 2,150,000 | |||||
See accompanying notes to financial statements.
56
Inspire Small/Mid Cap Impact ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Year Ended | Year Ended | |||||||
November 30, 2020 | November 30, 2019 | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 1,170,942 | $ | 953,220 | ||||
Net realized loss on investments and foreign currency transactions | (8,534,298 | ) | (2,168,687 | ) | ||||
Net change in unrealized appreciation on investments and foreign currency translations | 6,062,403 | 7,293,332 | ||||||
Net increase (decrease) in net assets resulting from operations | (1,300,953 | ) | 6,077,865 | |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid: | (1,036,755 | ) | (1,764,670 | ) | ||||
Net decrease in net assets resulting from distributions to shareholders | (1,036,755 | ) | (1,764,670 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 36,569,628 | 60,912,677 | ||||||
Cost of shares redeemed | (47,470,140 | ) | (16,788,007 | ) | ||||
Net increase (decrease) in net assets resulting from shares of beneficial interest | (10,900,512 | ) | 44,124,670 | |||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | (13,238,220 | ) | 48,437,865 | |||||
NET ASSETS | ||||||||
Beginning of Year | 99,226,093 | 50,788,228 | ||||||
End of Year | $ | 85,987,873 | $ | 99,226,093 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 1,500,000 | 2,350,000 | ||||||
Shares Redeemed | (2,000,000 | ) | (650,000 | ) | ||||
Net increase (decrease) in shares of beneficial interest outstanding | (500,000 | ) | 1,700,000 |
See accompanying notes to financial statements.
57
Inspire Corporate Bond Impact ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Year Ended | Year Ended | |||||||
November 30, 2020 | November 30, 2019 | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 2,342,096 | $ | 2,617,012 | ||||
Net realized gain on investments | 2,819,075 | 453,112 | ||||||
Net change in unrealized appreciation on investments | 1,038,258 | 5,123,773 | ||||||
Net increase in net assets resulting from operations | 6,199,429 | 8,193,897 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid: | (2,648,430 | ) | (2,592,260 | ) | ||||
Net decrease in net assets resulting from distributions to shareholders | (2,648,430 | ) | (2,592,260 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 101,690,884 | 77,661,864 | ||||||
Cost of shares redeemed | (77,135,830 | ) | (2,571,518 | ) | ||||
Net increase in net assets resulting from shares of beneficial interest | 24,555,054 | 75,090,346 | ||||||
TOTAL INCREASE IN NET ASSETS | 28,106,053 | 80,691,983 | ||||||
NET ASSETS | ||||||||
Beginning of Year | 138,722,618 | 58,030,635 | ||||||
End of Year | $ | 166,828,671 | $ | 138,722,618 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 3,900,000 | 3,100,000 | ||||||
Shares Redeemed | (3,000,000 | ) | (100,000 | ) | ||||
Net increase in shares of beneficial interest outstanding | 900,000 | 3,000,000 |
See accompanying notes to financial statements.
58
Inspire 100 ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Year Ended | Year Ended | |||||||
November 30, 2020 | November 30, 2019 | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 1,325,624 | $ | 964,882 | ||||
Net realized gain (loss) on investments | 6,504,786 | (1,898,818 | ) | |||||
Net change in unrealized appreciation on investments | 16,624,890 | 11,262,989 | ||||||
Net increase in net assets resulting from operations | 24,455,300 | 10,329,053 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid: | (1,183,515 | ) | (724,530 | ) | ||||
Net decrease in net assets resulting from distributions to shareholders | (1,183,515 | ) | (724,530 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 56,434,516 | 44,297,144 | ||||||
Cost of shares redeemed | (23,372,072 | ) | — | |||||
Net increase in net assets resulting from shares of beneficial interest | 33,062,444 | 44,297,144 | ||||||
TOTAL INCREASE IN NET ASSETS | 56,334,229 | 53,901,667 | ||||||
NET ASSETS | ||||||||
Beginning of Year | 92,986,253 | 39,084,586 | ||||||
End of Year | $ | 149,320,482 | $ | 92,986,253 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 1,850,000 | 1,650,000 | ||||||
Shares Redeemed | (850,000 | ) | — | |||||
Net increase in shares of beneficial interest outstanding | 1,000,000 | 1,650,000 |
See accompanying notes to financial statements.
59
Inspire International ESG ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Year Ended | Period Ended | |||||||
November 30, 2020 | November 30, 2019 (a) | |||||||
FROM OPERATIONS | ||||||||
Net investment income (loss) | $ | 653,036 | $ | (21,362 | ) | |||
Net realized loss on investments and foreign currency transactions | (529,258 | ) | (7,450 | ) | ||||
Net change in unrealized appreciation on investments and foreign currency translations | 10,872,495 | 867,890 | ||||||
Net increase in net assets resulting from operations | 10,996,273 | 839,078 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid: | (578,626 | ) | — | |||||
Net decrease in net assets resulting from distributions to shareholders | (578,626 | ) | — | |||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 58,022,635 | 11,090,970 | ||||||
Cost of shares redeemed | (2,468,535 | ) | — | |||||
Net increase in net assets resulting from shares of beneficial interest | 55,554,100 | 11,090,970 | ||||||
TOTAL INCREASE IN NET ASSETS | 65,971,747 | 11,930,048 | ||||||
NET ASSETS | ||||||||
Beginning of Period | 11,930,048 | — | ||||||
End of Period | $ | 77,901,795 | $ | 11,930,048 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 2,300,000 | 450,000 | ||||||
Shares Redeemed | (100,000 | ) | — | |||||
Net increase in shares of beneficial interest outstanding | 2,200,000 | 450,000 |
(a) | The Inspire International ESG ETF commenced operations on September 30, 2019. |
See accompanying notes to financial statements.
60
Inspire Tactical Balanced ESG ETF |
STATEMENT OF CHANGES IN NET ASSETS |
Period Ended | ||||
November 30, 2020 (a) | ||||
FROM OPERATIONS | ||||
Net investment income | $ | 202,473 | ||
Net realized gain on investments | 975,245 | |||
Net change in unrealized appreciation on investments and foreign currency translations | 1,826,279 | |||
Net increase in net assets resulting from operations | 3,003,997 | |||
DISTRIBUTIONS TO SHAREHOLDERS | ||||
Total distributions paid: | (88,835 | ) | ||
Net decrease in net assets resulting from distributions to shareholders | (88,835 | ) | ||
FROM SHARES OF BENEFICIAL INTEREST | ||||
Proceeds from shares sold | 91,217,214 | |||
Cost of shares redeemed | (22,580,078 | ) | ||
Net increase in net assets resulting from shares of beneficial interest | 68,637,136 | |||
TOTAL INCREASE IN NET ASSETS | 71,552,298 | |||
NET ASSETS | ||||
Beginning of Period | — | |||
End of Period | $ | 71,552,298 | ||
SHARE ACTIVITY | ||||
Shares Sold | 3,625,000 | |||
Shares Redeemed | (900,000 | ) | ||
Net increase in shares of beneficial interest outstanding | 2,725,000 |
(a) | The Inspire Tactical Balanced ESG ETF commenced operations on July 15, 2020. |
See accompanying notes to financial statements.
61
Inspire Global Hope ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period
Year Ended | Year Ended | Year Ended | Period Ended | |||||||||||||
November 30, 2020 | November 30, 2019 | November 30, 2018 | November 30, 2017 (1) | |||||||||||||
Net asset value, beginning of period | $ | 29.21 | $ | 26.20 | $ | 27.86 | $ | 25.00 | ||||||||
Activity from investment operations: | ||||||||||||||||
Net investment income (2) | 0.50 | 0.67 | 0.48 | 0.36 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 2.96 | 3.08 | (1.49 | ) | 2.78 | |||||||||||
Total from investment operations | 3.46 | 3.75 | (1.01 | ) | 3.14 | |||||||||||
Less distributions from: | ||||||||||||||||
Net investment income | (0.52 | ) | (0.58 | ) | (0.49 | ) | (0.28 | ) | ||||||||
Net realized gains | (0.03 | ) | (0.16 | ) | (0.16 | ) | — | |||||||||
Total distributions | (0.55 | ) | (0.74 | ) | (0.65 | ) | (0.28 | ) | ||||||||
Net asset value, end of period | $ | 32.12 | $ | 29.21 | $ | 26.20 | $ | 27.86 | ||||||||
Total return (6) | 12.35 | % | 14.60 | % | (3.74 | )% | 12.63 | % (4) | ||||||||
Net assets, at end of period (000s) | $ | 120,453 | $ | 160,673 | $ | 87,770 | $ | 52,929 | ||||||||
Ratio of gross expenses to average net assets (3) | 0.61 | % | 0.52 | % (8) | 0.62 | % | 0.75 | % | ||||||||
Ratio of net expenses to average net assets (3) | 0.61 | % | 0.54 | % (7) | 0.62 | % | 0.65 | % | ||||||||
Ratio of net investment income to average net assets (3) | 1.82 | % | 2.42 | % | 1.71 | % | 1.80 | % | ||||||||
Portfolio Turnover Rate (5) | 36 | % | 22 | % | 22 | % | 15 | % (4) |
(1) | The Inspire Global Hope ETF commenced operations on February 27, 2017. |
(2) | Per share amounts calculated using the average shares method, which more appropriately presents the per share data for the period. |
(3) | Annualized for periods less than one year. |
(4) | Not annualized. |
(5) | Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
(6) | 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. |
(7) | Represents the ratio of expenses to average net assets after adviser recapture of waived/reimbursement fees from prior periods. |
(8) | Represents the ratio of expenses to average net assets before adviser recapture of waived/reimbursement fees from prior periods. |
See accompanying notes to financial statements.
62
Inspire Small/Mid Cap Impact ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period
Year Ended | Year Ended | Year Ended | Period Ended | |||||||||||||
November 30, 2020 | November 30, 2019 | November 30, 2018 | November 30, 2017 (1) | |||||||||||||
Net asset value, beginning of period | $ | 27.56 | $ | 26.73 | $ | 26.82 | $ | 25.00 | ||||||||
Activity from investment operations: | ||||||||||||||||
Net investment income (2) | 0.37 | 0.32 | 0.30 | 0.20 | ||||||||||||
Net realized and unrealized gain on investments | 0.13 | (7) | 1.29 | 0.20 | (7) | 1.73 | ||||||||||
Total from investment operations | 0.50 | 1.61 | 0.50 | 1.93 | ||||||||||||
Less distributions from: | ||||||||||||||||
Net investment income | (0.31 | ) | (0.22 | ) | (0.21 | ) | (0.11 | ) | ||||||||
Net realized gains | (0.01 | ) | (0.56 | ) | (0.38 | ) | — | |||||||||
Total distributions | (0.32 | ) | (0.78 | ) | (0.59 | ) | (0.11 | ) | ||||||||
Net asset value, end of period | $ | 27.74 | $ | 27.56 | $ | 26.73 | $ | 26.82 | ||||||||
Total return (6) | 2.12 | % | 6.42 | % | 1.89 | % | 7.75 | % (4) | ||||||||
Net assets, at end of period (000s) | $ | 85,988 | $ | 99,226 | $ | 50,788 | $ | 29,499 | ||||||||
Ratio of gross expenses to average net assets (3) | 0.57 | % (9) | 0.64 | % | 0.71 | % | 0.94 | % | ||||||||
Ratio of net expenses to average net assets (3) | 0.60 | % (8) | 0.60 | % | 0.62 | % | 0.65 | % | ||||||||
Ratio of net investment income to average net assets (3) | 1.53 | % | 1.24 | % | 1.07 | % | 1.06 | % | ||||||||
Portfolio Turnover Rate (5) | 92 | % | 42 | % | 24 | % | 16 | % (4) |
(1) | The Small/Mid Cap Impact ETF commenced operations on February 27, 2017. |
(2) | Per share amounts calculated using the average shares method, which more appropriately presents the per share data for the period. |
(3) | Annualized for periods less than one year. |
(4) | Not annualized. |
(5) | Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
(6) | 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. |
(7) | The amount of net realized and unrealized gain on investments per share does not accord with the amounts in the Statements of Operations due to the timing of shareholder subscriptions and redemptions relative to fluctuating net asset values during the year. |
(8) | Represents the ratio of expenses to average net assets after adviser recapture of waived/reimbursement fees from prior periods. |
(9) | Represents the ratio of expenses to average net assets before adviser recapture of waived/reimbursement fees from prior periods. |
See accompanying notes to financial statements.
63
Inspire Corporate Bond Impact ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period
Year Ended | Year Ended | Year Ended | Period Ended | |||||||||||||
November 30, 2020 | November 30, 2019 | November 30, 2018 | November 30, 2017 (1) | |||||||||||||
Net asset value, beginning of period | $ | 25.69 | $ | 24.18 | $ | 24.95 | $ | 25.00 | ||||||||
Activity from investment operations: | ||||||||||||||||
Net investment income (2) | 0.45 | 0.64 | 0.56 | 0.18 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 0.86 | 1.49 | (0.81 | ) | (0.09 | ) | ||||||||||
Total from investment operations | 1.31 | 2.13 | (0.25 | ) | 0.09 | |||||||||||
Less distributions from: | ||||||||||||||||
Net investment income | (0.44 | ) | (0.62 | ) | (0.52 | ) | (0.14 | ) | ||||||||
Net realized gains | (0.08 | ) | — | (0.00 | ) (7) | — | ||||||||||
Total distributions | (0.52 | ) | (0.62 | ) | (0.52 | ) | (0.14 | ) | ||||||||
Net asset value, end of period | $ | 26.48 | $ | 25.69 | $ | 24.18 | $ | 24.95 | ||||||||
Total return (6) | 5.16 | % | 8.91 | % | (0.99 | )% | 0.37 | % (4) | ||||||||
Net assets, at end of period (000s) | $ | 166,829 | $ | 138,723 | $ | 58,031 | $ | 22,453 | ||||||||
Ratio of gross expenses to average net assets (3) | 0.49 | % | 0.50 | % (9) | 0.68 | % | 1.51 | % | ||||||||
Ratio of net expenses to average net assets (3) | 0.49 | % | 0.58 | % (8) | 0.62 | % | 0.65 | % | ||||||||
Ratio of net investment income to average net assets (3) | 1.75 | % | 2.52 | % | 2.27 | % | 1.81 | % | ||||||||
Portfolio Turnover Rate (5) | 35 | % | 18 | % | 5 | % | 6 | % (4) |
(1) | The Inspire Corporate Bond Impact ETF commenced operations on July 10, 2017. |
(2) | Per share amounts calculated using the average shares method, which more appropriately presents the per share data for the period. |
(3) | Annualized for periods less than one year. |
(4) | Not annualized. |
(5) | Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
(6) | 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. |
(7) | Represents less than $0.005. |
(8) | Represents the ratio of expenses to average net assets after adviser recapture of waived/reimbursement fees from prior periods. |
(9) | Represents the ratio of expenses to average net assets before adviser recapture of waived/reimbursement fees from prior periods. |
See accompanying notes to financial statements.
64
Inspire 100 ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period
Year Ended | Year Ended | Year Ended | Period Ended | |||||||||||||
November 30, 2020 | November 30, 2019 | November 30, 2018 | November 30, 2017 (1) | |||||||||||||
Net asset value, beginning of period | $ | 29.52 | $ | 26.06 | $ | 25.69 | $ | 25.00 | ||||||||
Activity from investment operations: | ||||||||||||||||
Net investment income (2) | 0.41 | 0.43 | 0.61 | 0.05 | ||||||||||||
Net realized and unrealized gain on investments | 6.43 | 3.35 | 0.19 | (7) | 0.64 | |||||||||||
Total from investment operations | 6.84 | 3.78 | 0.80 | 0.69 | ||||||||||||
Less distributions from: | ||||||||||||||||
Net investment income | (0.38 | ) | (0.31 | ) | (0.42 | ) | — | |||||||||
Net realized gains | — | (0.01 | ) | — | — | |||||||||||
Return of capital | — | — | (0.01 | ) | — | |||||||||||
Total distributions | (0.38 | ) | (0.32 | ) | (0.43 | ) | — | |||||||||
Net asset value, end of period | $ | 35.98 | $ | 29.52 | $ | 26.06 | $ | 25.69 | ||||||||
Total return (6) | 23.50 | % | 14.64 | % | 3.09 | % | 2.76 | % (4) | ||||||||
Net assets, at end of period (000s) | $ | 149,320 | $ | 92,986 | $ | 39,085 | $ | 6,423 | ||||||||
Ratio of gross expenses to average net assets (3) | 0.48 | % | 0.57 | % | 0.84 | % | 3.78 | % | ||||||||
Ratio of net expenses to average net assets (3) | 0.35 | % | 0.35 | % | 0.35 | % | 0.35 | % | ||||||||
Ratio of net investment income to average net assets (3) | 1.31 | % | 1.59 | % | 2.27 | % | 2.41 | % | ||||||||
Portfolio Turnover Rate (5) | 60 | % | 23 | % | 8 | % | 0 | % (4) |
(1) | The Inspire 100 ETF commenced operations on October 30, 2017. |
(2) | Per share amounts calculated using the average shares method, which more appropriately presents the per share data for the period. |
(3) | Annualized for periods less than one year. |
(4) | Not annualized. |
(5) | Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
(6) | 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. |
(7) | The amount of net realized and unrealized gain on investments per share does not accord with the amounts in the Statements of Operations due to the timing of shareholder subscriptions and redemptions relative to fluctuating net asset values during the year. |
See accompanying notes to financial statements.
65
Inspire International ESG ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period
Year Ended | Period Ended | |||||||
November 30, 2020 | November 30, 2019 (1) | |||||||
Net asset value, beginning of period | $ | 26.51 | $ | 25.00 | ||||
Activity from investment operations: | ||||||||
Net investment income (loss) (2) | 0.36 | (0.05 | ) | |||||
Net realized and unrealized gain on investments | 2.81 | 1.56 | ||||||
Total from investment operations | 3.17 | 1.51 | ||||||
Less distributions from: | ||||||||
Net investment income | (0.28 | ) | — | |||||
Total distributions | (0.28 | ) | — | |||||
Net asset value, end of period | $ | 29.40 | $ | 26.51 | ||||
Total return (6) | 12.29 | % | 6.04 | % (4) | ||||
Net assets, at end of period (000s) | $ | 77,902 | $ | 11,930 | ||||
Ratio of net expenses to average net assets (3) | 0.94 | % | 2.44 | % | ||||
Ratio of net investment income (loss) to average net assets (3) | 1.44 | % | (1.16 | )% | ||||
Portfolio Turnover Rate (5) | 27 | % | 0 | % (4) |
(1) | The Inspire International ESG ETF commenced operations on September 30, 2019. |
(2) | Per share amounts calculated using the average shares method, which more appropriately presents the per share data for the period. |
(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. |
(6) | 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. |
See accompanying notes to financial statements.
66
Inspire Tactical Balanced ESG ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout The Period
Period Ended | ||||
November 30, 2020 (1) | ||||
Net asset value, beginning of period | $ | 25.00 | ||
Activity from investment operations: | ||||
Net investment income (2) | 0.08 | |||
Net realized and unrealized gain on investments | 1.21 | |||
Total from investment operations | 1.29 | |||
Less distributions from: | ||||
Net investment income | (0.03 | ) | ||
Total distributions | (0.03 | ) | ||
Net asset value, end of period | $ | 26.26 | ||
Total return (4)(6) | 5.18 | % | ||
Net assets, at end of period (000s) | $ | 71,552 | ||
Ratio of net expenses to average net assets (3) | 0.80 | % | ||
Ratio of net investment income to average net assets (3) | 0.81 | % | ||
Portfolio Turnover Rate (4)(5) | 282 | % |
(1) | The Inspire Tactical Balanced ESG ETF commenced operations on July 15, 2020. |
(2) | Per share amounts calculated using the average shares method, which more appropriately presents the per share data for the period. |
(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. |
(6) | 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. |
See accompanying notes to financial statements.
67
The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS |
November 30, 2020 |
1. | ORGANIZATION |
The Inspire Global Hope ETF (“BLES”), Inspire Small/Mid Cap Impact ETF (“ISMD”), Inspire Corporate Bond Impact ETF (“IBD”), Inspire 100 ETF (“BIBL”), Inspire International ESG ETF (“WWJD”), and Inspire Tactical Balanced ESG ETF (“RISN”)(each a “Fund” and collectively the “Funds”) are each diversified series of Northern Lights Fund Trust IV (the “Trust”), a statutory trust organized under the laws of the State of Delaware on June 2, 2015, which is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. BLES’s investment objective seeks to replicate investment results that generally correspond, before fees and expenses, to the performance of the Inspire Global Hope Large Cap Equal Weight Index. ISMD’s investment objective seeks to replicate investment results that generally correspond, before fees and expenses, to the performance of the Inspire Small/Mid Cap Impact Equal Weight Index. IBD’s investment objective seeks to replicate investment results that generally correspond, before fees and expenses, to the performance of the Inspire Corporate Bond Impact Equal Weight Index. BIBL’s investment objective seeks to replicate investment results that generally correspond, before fees and expenses, to the performance of the Inspire 100 Index. WWJD’s investment objective seeks to replicate the investment results that generally correspond, before fees and expenses, to the performance of the Inspire Global Hope ex-US Index. RISN’s investment objective seeks to provide capital appreciation with lower volatility than the US large cap stock market over the long term. The investment objectives are non-fundamental. BLES and ISMD commenced operations on February 27, 2017. IBD commenced operations on July 10, 2017. BIBL commenced operations on October 30, 2017. WWJD commenced operations on September 30, 2019. RISN commenced operations on July 15, 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 each investment companies and accordingly follow the investment company accounting and reporting guidance of the Financial 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 primary exchange on the business day the value is being determined or, in the case of securities listed on NASDAQ at the NASDAQ Official Closing Price (“NOCP”). In the absence of a sale, such securities shall be valued at the mean between the current bid and ask prices on the primary exchange on the day of valuation. Debt securities (other than short-term obligations) are valued each day by an independent pricing service approved by the Trust’s Board of Trustees (the “Board”) based on methods which include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type, indications as to values from dealers, and general market conditions or market quotations from a major market maker in the securities. Investments valued
68
The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2020 |
in currencies other than the U.S. dollar are converted to U.S. dollars using exchange rates obtained from pricing services. Short-term debt obligations having 60 days or less remaining until maturity, at time of purchase, may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value.
Each Fund may hold securities, such as private investments, interests in commodity pools, other non-traded securities or temporarily illiquid securities, for which market quotations are not readily available or are determined to be unreliable. These securities will be valued using the “fair value” procedures approved by the Board. The Board has delegated execution of these procedures to a fair value committee composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) adviser. The committee may also enlist third party consultants, such as a valuation specialist at a public accounting firm, valuation consultant or financial officer of a security issuer, on an as-needed basis to assist in determining a security-specific fair value. The Board reviews and ratifies the execution of this process and the resultant fair value prices at least quarterly to assure the process produces reliable results.
Fair Valuation Process – As noted above, the fair value committee is composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) the adviser. The applicable investments are valued collectively via inputs from each of these groups. For example, fair value determinations are required for the following securities: (i) securities for which market quotations are insufficient or not readily available on a particular business day (including securities for which there is a short and temporary lapse in the provision of a price by the regular pricing source); (ii) securities for which, in the judgment of the adviser, the prices or values available do not represent the fair value of the instrument. Factors which may cause an adviser 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; (iv) securities with respect to which an event that will affect the value thereof has occurred (a “significant event”) since the closing prices were established on the principal exchange on which they are traded, but prior to the Funds’ calculation of their net asset values. 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 adviser based upon the current bid for the security from two or more independent dealers or other parties reasonably familiar with the facts and circumstances of the security (who should take into consideration all relevant factors as may be appropriate under the circumstances). If the adviser is unable to obtain a current bid from such independent dealers or other independent parties, the fair value committee shall determine the fair value of such security using the following factors: (i) the type of security; (ii) the cost at date of purchase; (iii) the size and nature of the Funds’ 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
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November 30, 2020 |
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.
Securities Lending Risk – Securities lending involves exposure to certain risks, including operational risk (i.e., the risk of losses resulting from problems in the settlement and accounting process), “gap” risk (i.e., the risk of a mismatch between the return on cash collateral reinvestments and the fees a Fund has agreed to pay a borrower), and credit, legal, counterparty and market risk. In the event a borrower does not return a Fund’s securities as agreed, the Fund may experience losses if the proceeds received from liquidating the collateral do not at least equal the value of the loaned security at the time the collateral is liquidated plus the transaction costs incurred in purchasing replacement securities.
Fixed Income Risk – When a Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities owned by the Fund. In general, the market price of fixed income securities with longer maturities will increase or decrease more in response to changes in interest rates than shorter-term securities. Other risk factors include credit risk (the debtor may default), extension risk (an issuer may exercise its right to repay principal on a fixed rate obligation held by the Fund later than expected), and prepayment risk (the debtor may pay its obligation early, reducing the amount of interest payments). These risks could affect the value of a particular investment by each Fund, possibly causing the Fund’s share price and total return to be reduced and fluctuate more than other types of investments.
Foreign Securities Risk – Foreign companies are generally not subject to the same regulatory requirements of U.S. companies thereby resulting in less publicly available information about these companies. The lack of readily available public information may lead to inaccurate Inspire Impact Scores. Not all countries and jurisdictions monitor or regulate all environmental, social and governance (ESG) factors so that there may be no relevant information available for certain factors. In addition, foreign accounting, auditing and financial reporting standards generally differ from those applicable to U.S. companies.
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 Funds have the ability to access.
Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in 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
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November 30, 2020 |
available, representing the Funds’ 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 value requires more judgment. Accordingly, the degree of judgment exercised in determining value is greatest for instruments categorized in Level 3.
The inputs used to measure value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize the inputs used as of November 30, 2020 for the Funds’ assets measured at value:
BLES | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 114,838,622 | $ | 4,114,787 | $ | — | $ | 118,953,409 | ||||||||
Money Market Fund | 3,737,730 | — | — | 3,737,730 | ||||||||||||
Stock Warrant | 13,541 | — | — | 13,541 | ||||||||||||
Total | $ | 118,589,893 | $ | 4,114,787 | $ | — | $ | 122,704,680 | ||||||||
ISMD | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 85,555,394 | $ | — | $ | — | $ | 85,555,394 | ||||||||
Money Market Fund | 13,147,841 | — | — | 13,147,841 | ||||||||||||
Total | $ | 98,703,235 | $ | — | $ | — | $ | 98,703,235 | ||||||||
IBD | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Corporate Bonds | $ | — | $ | 160,444,444 | $ | — | $ | 160,444,444 | ||||||||
Total | $ | — | $ | 160,444,444 | $ | — | $ | 160,444,444 | ||||||||
BIBL | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 147,657,645 | $ | — | $ | — | $ | 147,657,645 | ||||||||
Money Market Fund | 1,631,705 | — | — | 1,631,705 | ||||||||||||
Total | $ | 149,289,350 | $ | — | $ | — | $ | 149,289,350 |
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November 30, 2020 |
WWJD | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 75,243,458 | $ | 1,702,765 | $ | — | $ | 76,946,223 | ||||||||
Money Market Fund | 1,780,736 | — | — | 1,780,736 | ||||||||||||
Stock Warrant | 2,501 | — | — | 2,501 | ||||||||||||
Total | $ | 77,026,695 | $ | 1,702,765 | $ | — | $ | 78,729,460 | ||||||||
RISN | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 56,695,527 | $ | — | $ | — | $ | 56,695,527 | ||||||||
Exchange Traded Fund | 14,050,843 | — | — | 14,050,843 | ||||||||||||
Total | $ | 70,746,370 | $ | — | $ | — | $ | 70,746,370 |
The Funds did not hold any Level 3 securities during the period.
* | See Portfolio of Investments for industry classification. |
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.
Dividends and distributions to shareholders – Dividends from net investment income, if any, are declared and paid quarterly for BLES, ISMD, BIBL, WWJD, and RISN and monthly for IBD. Dividends and distributions to shareholders are recorded on the ex-dividend date. 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.
Federal Income Taxes – The Funds comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of their taxable income to shareholders. Therefore, no provision for federal income tax is required.
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 each Fund’s tax position and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years or expected to be taken in each Fund’s November 30, 2020 year-end tax return. Each Fund identified its major tax jurisdictions as U.S. federal, Ohio (Nebraska in prior years) and foreign jurisdictions where the Fund makes significant investments. Each Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expenses, in the Statements of Operations. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
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November 30, 2020 |
Expenses – Expenses of the Trust that are directly identifiable to a specific Fund are charged to that Fund. Expenses, which are not readily identifiable to a specific Fund, are allocated in such a manner as deemed equitable (as determined by the Board), taking into consideration the nature and type of expense and the relative sizes of the Funds in the Trust.
Cash – The Funds consider their investments in an FDIC insured interest bearing savings account to be cash. The Funds maintain cash balances, which, at times, may exceed federally insured limits. The Funds maintain these balances with a high quality financial institution.
Foreign Currency – The accounting records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency, and income receipts and expense payments are translated into U.S. dollars using the prevailing exchange rate at the London market close. Purchases and sales of securities are translated into U.S. dollars at the contractual currency rates established at the approximate time of the trade. Net realized gains and losses on foreign currency transactions represent net gains and losses from currency realized between the trade and settlement dates on securities transactions, gains and losses on the purchase and sale of foreign currencies and the difference between income accrued versus income received. The effects of changes in foreign currency exchange rates on investments in securities are included with the net realized and unrealized gain or loss on investment securities.
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, based on experience, the risk of loss due to these warranties and indemnities appears to be remote.
3. | INVESTMENT TRANSACTIONS |
For the year and period ended November 30, 2020, cost of purchases and proceeds from sales of portfolio securities (excluding in-kind transactions and short-term investments) for the Funds were as follows:
Purchases | Sales | |||||||
BLES | $ | 43,006,349 | $ | 45,913,504 | ||||
ISMD | $ | 70,504,064 | $ | 69,808,133 | ||||
IBD | $ | 44,425,484 | $ | 45,226,529 | ||||
BIBL | $ | 60,639,946 | $ | 60,900,725 | ||||
WWJD | $ | 18,507,567 | $ | 11,580,200 | ||||
RISN | $ | 179,261,830 | $ | 178,609,363 |
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The Inspire ETFs |
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November 30, 2020 |
For the year and period ended November 30, 2020, cost of purchases and proceeds from sales of portfolio securities for in-kind transactions for the Funds were as follows:
Purchases | Sales | |||||||
BLES | $ | 10,549,480 | $ | 54,451,961 | ||||
ISMD | $ | 36,245,780 | $ | 47,132,557 | ||||
IBD | $ | 94,310,924 | $ | 71,841,379 | ||||
BIBL | $ | 55,740,834 | $ | 23,081,781 | ||||
WWJD | $ | 51,407,613 | $ | 2,346,217 | ||||
RISN | $ | 89,457,833 | $ | 22,156,915 |
4. | INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PARTIES |
The business activities of the Funds are overseen by the Board. CWM Advisors, LLC (the “Adviser”) serves as the Funds’ investment adviser pursuant to an Investment Advisory Agreement with the Trust (the “Advisory Agreement”). The Trust has entered into a Global Custody Agreement with Brown Brothers Harriman & Co. (the “Custodian”) to serve as custodian and to act as transfer and shareholder services agent. The Trust has also entered into an Underwriting Agreement with Northern Lights Distributors, LLC (the “Distributor”) to serve as the principal underwriter and distributor for the Trust. Effective July 13, 2020, all references to each Fund’s distributor, Northern Lights Distributors, LLC, have been replaced with Foreside Financial Services, LLC.
Pursuant to the Advisory Agreement, the Adviser, 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 Adviser, the Funds pay the Adviser a fee, computed and accrued daily and paid monthly, at an annual rate of 0.30% of each Fund’s average daily net assets for BLES, ISMD, IBD, and BIBL, an annual rate of 0.45% for WWJD, and an annual rate of 0.50% for RISN. For the year and period ended November 30, 2020, the Adviser earned $364,008, $229,910, $401,073, $303,072, $202,999, and $123,727 in advisory fees for BLES, ISMD, IBD, BIBL, WWJD, and RISN respectively.
Pursuant to a written contract (the “Waiver Agreement”), the Adviser has agreed for ISMD and BIBL, at least until March 31, 2021, to waive a portion of its advisory fee and has agreed to reimburse the Funds for other expenses to the extent necessary so that total expenses incurred (exclusive of any front-end or contingent deferred loads, taxes, brokerage fees and commissions, borrowing costs (such as interest and dividend expense on securities sold short), acquired fund fees and expenses, fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses), or extraordinary expenses such as litigation) will not exceed 0.60% and 0.35% of average daily net assets for ISMD and BIBL, respectively. BLES and IBD waiver agreement expired on March 30, 2020. WWJD and RISN currently do not have a Waiver Agreement in place.
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The Inspire ETFs |
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November 30, 2020 |
If the Adviser waives any fee or reimburses any expenses pursuant to the Waiver Agreement, and a Fund’s operating expenses are subsequently lower than its Expense Limitation, or limitation in place at time of waiver, the Adviser, on a rolling three -year period, shall be entitled to reimbursement by the Fund provided that such reimbursement does not cause that Fund’s operating expense to exceed the Expense Limitation. If a Fund’s operating expenses subsequently exceed the Expense Limitation, the reimbursements for the Fund shall be suspended. For the year ended November 30, 2020, the Adviser waived fees and/or reimbursed expenses in the amount of $133,196 for BIBL pursuant to the Waiver Agreement. For the year ended November 30, 2020, the Adviser recaptured $24,621 of previously waived fees for ISMD.
The following amounts previously waived by the Adviser are subject to recapture by the Funds by the following dates:
11/30/2021 | 11/30/2022 | 11/30/2023 | ||||||||||
ISMD | $ | 17,309 | $ | 28,449 | $ | — | ||||||
BIBL | $ | 117,184 | $ | 131,308 | $ | 133,196 |
The Adviser may seek reimbursement only for expenses waived or paid by it during the three years prior to such reimbursement; provided, however, that such expenses may only be reimbursed to the extent they were waived or paid after the effective date of the Waiver Agreement (or any similar agreement). The Board may terminate this expense reimbursement arrangement at any time.
The Trust, with respect to the Funds, has 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.
Gemini Fund Services, LLC (“GFS”) – GFS, provides administration and fund accounting services to the Trust. Pursuant to separate servicing agreements with GFS, the Funds pay GFS customary fees for providing administration and fund accounting services to the Funds. 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, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives customary fees from each Fund.
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November 30, 2020 |
Blu Giant, LLC (“Blu Giant”) – Blu Giant, an affiliate of GFS, 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 Funds.
5. | CAPITAL SHARE TRANSACTIONS |
Shares are not individually redeemable and may be redeemed by the Funds at the net asset value (“NAV”) only in large blocks known as “Creation Units.” Shares are created and redeemed by the Funds only in Creation Unit size aggregations of 50,000 shares for BLES, ISMD, BIBL, and WWJD, 100,000 shares for IBD, and 25,000 for RISN. Only Authorized Participants or transactions done through an Authorized Participant 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 DTC participant and, in each case, must have executed a Participant Agreement with the Distributor. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the NAV per share of the 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 Authorized Participant or as a result of other market circumstances. In addition, the Funds may impose transaction fees on purchases and redemptions of Fund shares to cover the custodial and other costs incurred by the Funds in effecting trades. A fixed fee may be imposed on each creation and redemption transaction regardless of the number of Creation Units involved in the transaction (“Fixed Fee”). Purchases and redemptions of Creation Units for cash or involving cash-in-lieu are required to pay an additional variable charge to compensate the 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”).
The Transaction Fees for the Funds are listed in the table below:
ETFs | Fee for In-Kind and Cash Purchases | Maximum Additional Variable Charge for Cash Purchases* | ||||||
BLES | $5,000 | 2.00%* | ||||||
ISMD | $2,500 | 2.00%* | ||||||
IBD | $750 | 2.00%* | ||||||
BIBL | $750 | 2.00%* | ||||||
WWJD | $4,500 | 2.00%* | ||||||
RISN | $250 | None |
* | The maximum Transaction Fee may be up to 2.00% of the amount invested. |
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November 30, 2020 |
Effective August 11, 2020, the following replaces the Transaction Fees listed above:
ETFs | Fee for In-Kind and Cash Purchases | Maximum Additional Variable Charge for Cash Purchases* | ||||||
BLES | $500 | 0.00% | ||||||
ISMD | $250 | 0.00% | ||||||
IBD | $250 | 0.00% | ||||||
BIBL | $250 | 0.00% | ||||||
WWJD | $500 | 0.00% | ||||||
RISN | $250 | 0.00% |
* | The maximum Transaction Fee is 0.00% as a percentage of the amount invested. |
6. | DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL |
The tax character of fund distributions paid for the year or period ended November 30, 2020 and November 30, 2019 was as follows:
For the Year or Period Ended November 30, 2020: | ||||||||||||||||
Ordinary | Long-Term | Return | ||||||||||||||
Portfolio | Income | Capital Gains | Of Capital | Total | ||||||||||||
BLES | $ | 2,471,705 | $ | — | $ | — | $ | 2,471,705 | ||||||||
ISMD | 1,033,282 | — | 3,473 | 1,036,755 | ||||||||||||
IBD | 2,541,188 | 107,242 | — | 2,648,430 | ||||||||||||
BIBL | 1,183,515 | — | — | 1,183,515 | ||||||||||||
WWJD * | 635,887 | — | — | 635,887 | ||||||||||||
RISN | 88,835 | — | — | 88,835 | ||||||||||||
For the Year or Period Ended November 30, 2019: | ||||||||||||||||
Ordinary | Long-Term | Return | ||||||||||||||
Portfolio | Income | Capital Gains | Of Capital | Total | ||||||||||||
BLES | $ | 3,219,187 | $ | 289,438 | $ | — | $ | 3,508,625 | ||||||||
ISMD | 1,468,473 | 296,197 | — | 1,764,670 | ||||||||||||
IBD | 2,592,260 | — | — | 2,592,260 | ||||||||||||
BIBL | 724,530 | — | — | 724,530 | ||||||||||||
WWJD | — | — | — | — | ||||||||||||
RISN | — | — | — | — |
* | The difference between ordinary distributions paid from book and ordinary distributions paid from tax relates to allowable foreign tax credits of $57,261 for fiscal year ended November 30, 2020 for the |
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November 30, 2020 |
Inspire International ESG ETF, which have been passed through to the Funds’ underlying shareholders and are deemed dividends for tax purposes.
As of November 30, 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) | |||||||||||||||||||||
BLES | $ | 133,265 | $ | — | $ | — | $ | (3,976,372 | ) | $ | — | $ | 13,697,480 | $ | 9,854,373 | |||||||||||||
ISMD | — | — | — | (17,412,027 | ) | — | 11,931,651 | (5,480,376 | ) | |||||||||||||||||||
IBD | 143,726 | — | — | (448,880 | ) | — | 4,979,205 | 4,674,051 | ||||||||||||||||||||
BIBL | 1,311,797 | — | — | — | — | 26,782,098 | 28,093,895 | |||||||||||||||||||||
WWJD | 217,531 | — | — | (1,093,235 | ) | — | 11,606,066 | 10,730,362 | ||||||||||||||||||||
RISN | 2,977,982 | 1,311 | (145,964 | ) | — | — | 943,037 | 3,776,366 |
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 sales and adjustments for real estate investment trusts, passive foreign investment companies, partnerships, and C-Corporation return of capital distributions.
Capital losses incurred after October 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Inspire Tactical Balanced ESG ETF incurred and elected to defer such capital losses of $145,964.
At November 30, 2020, the Funds had capital loss carry forwards for federal income tax purposes available to offset future capital gains and utilized capital loss carryforwards as follows:
Non-Expiring | ||||||||||||||||
Portfolio | Short-Term | Long-Term | Total | Utilized | ||||||||||||
BLES | $ | — | $ | 3,976,372 | $ | 3,976,372 | $ | — | ||||||||
ISMD | 6,247,941 | 11,164,086 | 17,412,027 | — | ||||||||||||
IBD | 332,260 | 116,620 | 448,880 | — | ||||||||||||
BIBL | — | — | — | 1,141,520 | ||||||||||||
WWJD | 1,093,235 | — | 1,093,235 | — | ||||||||||||
RISN | — | — | — | — |
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NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2020 |
Permanent book and tax differences, primarily attributable to realized gain (loss) on in-kind redemptions, non-deductible expenses and distribution reclasses, resulted in reclassifications for the Funds for the period ended November 30, 2020 as follows:
Paid | ||||||||
In | Accumulated | |||||||
Portfolio | Capital | Earnings (Losses) | ||||||
BLES | $ | 9,388,353 | $ | (9,388,353 | ) | |||
ISMD | 8,160,629 | (8,160,629 | ) | |||||
IBD | 3,267,955 | (3,267,955 | ) | |||||
BIBL | 4,058,138 | (4,058,138 | ) | |||||
WWJD | 535,653 | (535,653 | ) | |||||
RISN | (861,204 | ) | 861,204 |
7. | AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION – TAX BASIS |
Gross | Gross | Net Unrealized | ||||||||||||||
Tax | Unrealized | Unrealized | Appreciation/ | |||||||||||||
Portfolio | Cost | Appreciation | Depreciation | (Depreciation) | ||||||||||||
BLES | $ | 109,019,315 | $ | 22,021,697 | $ | (8,336,332 | ) | $ | 13,685,365 | |||||||
ISMD | 86,771,589 | 14,251,889 | (2,320,243 | ) | 11,931,646 | |||||||||||
IBD | 155,465,239 | 5,065,879 | (86,674 | ) | 4,979,205 | |||||||||||
BIBL | 122,507,252 | 27,740,732 | (958,634 | ) | 26,782,098 | |||||||||||
WWJD | 67,137,073 | 12,731,441 | (1,139,054 | ) | 11,592,387 | |||||||||||
RISN | 69,803,333 | 2,685,831 | (1,742,794 | ) | 943,037 |
8. | SECURITIES LENDING |
Each Fund may lend up to 33 1⁄3% of the value of the securities in their portfolio to brokers, dealers and financial institutions (but not individuals) under terms of participation in a securities lending program administered by the Custodian. The securities lending agreement requires that loans are collateralized at all times in an amount equal to at least 100% of the value of any loaned securities at the time of the loan. Each Fund receives compensation in the form of fees. The amount of fees depends on a number of factors including the type of security and length of the loan. Each Fund continues to receive interest payments or dividends on the securities loaned during the borrowing period. Gain or loss in the fair value of securities loaned that may occur during the term of the loan will be for the account of each Fund. Each Fund has the right under the terms of the securities lending agreement to recall the securities from the borrower on demand. The cash collateral is held by the Custodian in accordance with the custody agreement. Each Fund could experience delays in recovering their securities and possible loss of income or value if the borrower fails to return the borrowed securities, although the Funds are indemnified from this risk by contract with the securities lending agent.
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2020 |
As of November 30, 2020, the value of the securities on loan and payable for collateral due to broker were as follows:
Market Value | Collateral Value | |||||||
of Securities | of Securities on | |||||||
on Loan | Loan | |||||||
BLES | $ | 3,571,734 | $ | 3,737,730 | ||||
ISMD | 12,589,850 | 13,147,841 | ||||||
BIBL | 1,561,570 | 1,631,705 | ||||||
WWJD | 1,706,942 | 1,780,736 |
The following table is a summary of the Funds’ securities loaned and related collateral, which are subject to a netting agreement as of November 30, 2020:
Gross Amounts Not Offset in the | ||||||||||||||||||||||||
Statement of Assets & Liabilities | ||||||||||||||||||||||||
Net | ||||||||||||||||||||||||
Amounts of | ||||||||||||||||||||||||
Gross | Assets | |||||||||||||||||||||||
Amounts | Presented in | |||||||||||||||||||||||
Gross | Offset in the | the | ||||||||||||||||||||||
Amounts of | Statement of | Statement of | ||||||||||||||||||||||
Recognized | Assets & | Assets & | Financial | Collateral | Net | |||||||||||||||||||
Fund | Assets | Liabilities | Liabilities | Instruments | Received | Amount | ||||||||||||||||||
BLES Security Lending | $ | 3,737,730 | $ | — | $ | 3,737,730 | $ | — | $ | 3,737,730 | $ | — | ||||||||||||
ISMD Security Lending | $ | 13,147,841 | $ | — | $ | 13,147,841 | $ | — | $ | 13,147,841 | $ | — | ||||||||||||
BIBL Securities Lending | $ | 1,631,705 | $ | — | $ | 1,631,705 | $ | — | $ | 1,631,705 | $ | — | ||||||||||||
WWJD Securities Lending | $ | 1,780,736 | $ | — | $ | 1,780,736 | $ | — | $ | 1,780,736 | $ | — |
It is each Fund’s policy to obtain additional collateral from, or return excess collateral to, the borrower by the end of the next business day following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than that required under the lending contract. As of November 30, 2020, the collateral consisted of institutional government money market funds.
9. | 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 other events or transactions occurred requiring adjustment or disclosure in the financial statements other than the following.
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Continued) |
November 30, 2020 |
The Board of Trustees declared the following distributions after November 30, 2020:
Dividend Per Share | Short Term Capital Gain | Long Term Capital Gain | Ex Date | Record Date | Payable Date | |||||||||||||
BLES | $ | 0.0503 | $ | — | $ | — | 12/14/2020 | 12/15/2020 | 12/21/2020 | |||||||||
ISMD | $ | 0.0287 | $ | — | $ | — | 12/14/2020 | 12/15/2020 | 12/21/2020 | |||||||||
IBD | $ | 0.0329 | $ | — | $ | — | 12/14/2020 | 12/15/2020 | 12/21/2020 | |||||||||
BIBL | $ | 0.1447 | $ | 0.1966 | $ | — | 12/14/2020 | 12/15/2020 | 12/21/2020 | |||||||||
WWJD | $ | 0.0984 | $ | — | $ | — | 12/14/2020 | 12/15/2020 | 12/21/2020 | |||||||||
RISN | $ | 0.1069 | $ | 1.0535 | $ | 0.0005 | 12/14/2020 | 12/15/2020 | 12/21/2020 | |||||||||
Dividend Per Share | Short Term Capital Gain | Long Term Capital Gain | Ex Date | Record Date | Payable Date | |||||||||||||
BLES | $ | 0.0697 | $ | — | $ | — | 12/30/2020 | 12/31/2020 | 1/4/2021 | |||||||||
RISN | $ | 0.0149 | $ | — | $ | — | 12/30/2020 | 12/31/2020 | 1/4/2021 |
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of Northern Lights Fund Trust IV
and the Shareholders of Inspire Global Hope ETF, Inspire Small/Mid Cap Impact ETF,
Inspire Corporate Bond Impact ETF, Inspire 100 ETF, Inspire International ESG ETF,
and Inspire Tactical Balanced ESG ETF
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of Inspire Global Hope ETF, Inspire Small/Mid Cap Impact ETF, Inspire Corporate Bond Impact ETF, Inspire 100 ETF, Inspire International ESG ETF, and Inspire Tactical Balanced ESG ETF, each a series of shares of beneficial interest in Northern Lights Fund Trust IV (the “Funds”), including the portfolios of investments, as of November 30, 2020, and the related statements of operations, the statements of changes in net assets and the financial highlights as noted in the table below, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of November 30, 2020, and the results of their operations, the changes in their net assets and their financial highlights for each of the periods noted in the table below, in conformity with accounting principles generally accepted in the United States of America.
Fund | Statements of Operations and Changes in Net Assets and the Financial Highlights Presented |
Inspire Global Hope ETF | The statement of operations for the year ended November 30, 2020, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the three-year period then ended and for the period from February 27, 2017 (commencement of operations) to November 30, 2017 |
Inspire Small/Mid Cap Impact ETF | The statement of operations for the year ended November 30, 2020, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the three-year period then ended and for the period from February 27, 2017 (commencement of operations) to November 30, 2017 |
82
Inspire Corporate Bond Impact ETF | The statement of operations for the year ended November 30, 2020, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the three-year period then ended and for the period from July 10, 2017 (commencement of operations) to November 30, 2017 |
Inspire 100 ETF | The statement of operations for the year ended November 30, 2020, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the three-year period then ended and for the period from October 30, 2017 (commencement of operations) to November 30, 2017 |
Inspire International ESG ETF | The statement of operations for the year ended November 30, 2020,and the statements of changes in net assets and the financial highlights for year ended November 30, 2020 and for the period from September 30, 2019 (commencement of operations) to November 30, 2019 |
Inspire Tactical Balanced ESG ETF | The statements of operations and changes in net assets and the financial highlights for the period from July 15, 2020 (commencement of operations) to November 30, 2020 |
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities law and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
83
Our audits included performing procedures to assess the risk of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of November 30, 2020 by correspondence with the custodian and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
BBD, LLP
We have served as the auditor of one or more of the Funds in the Northern Lights Fund Trust IV since 2015.
Philadelphia, Pennsylvania
January 27, 2021
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The Inspire ETFs |
EXPENSE EXAMPLES (Unaudited) |
November 30, 2020 |
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 management fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other 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 June 1, 2020 through November 30, 2020.
Actual Expenses
The “Actual” lines in the table below provide 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” lines in the table below provide information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ 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.
Beginning | Ending Account | Expenses Paid | Expenses Paid | |||||||
Account Value | Value | During Period* | During Period** | |||||||
Actual | 6/1/20 | 11/30/20 | 6/1/20 - 11/30/20 | 6/1/20 - 11/30/20 | ||||||
BLES | $ | 1,000.00 | $1,271.30 | $4.19 | 0.74% | |||||
ISMD | $ | 1,000.00 | $1,249.50 | $3.37 | 0.60% | |||||
IBD | $ | 1,000.00 | $1,032.70 | $2.58 | 0.51% | |||||
BIBL | $ | 1,000.00 | $1,209.70 | $1.93 | 0.35% | |||||
WWJD | $ | 1,000.00 | $1,292.30 | $4.88 | 0.85% | |||||
RISN*** | $ | 1,000.00 | $1,051.80 | $3.11 | 0.80% | |||||
Hypothetical | ||||||||||
(5% return before expenses) | ||||||||||
BLES | $ | 1,000.00 | $1,021.31 | $3.73 | 0.74% | |||||
ISMD | $ | 1,000.00 | $1,022.00 | $3.03 | 0.60% | |||||
IBD | $ | 1,000.00 | $1,022.47 | $2.56 | 0.51% | |||||
BIBL | $ | 1,000.00 | $1,023.25 | $1.77 | 0.35% | |||||
WWJD | $ | 1,000.00 | $1,020.81 | $4.31 | 0.85% | |||||
RISN*** | $ | 1,000.00 | $1,015.82 | $3.06 | 0.80% |
* | Expenses are equal to the average account value over the period, multiplied by the Fund’s annualized expense ratio net of waived/reimbursed fees, multiplied by the number of days in the period (183) divided by the number of days in the fiscal year (366). “Hypothetical” expense information is presented on the basis of the full one-half year period to enable a comparison to other funds. It is based on assuming the same net expense ratio and average account value over the period but is multiplied by 183/366 (to reflect the full half-year period). |
** | Annualized. |
*** | RISN commenced operations on July 15, 2020 therefore its “Actual” expenses are equal to the average account value over the period, multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the period (138) divided by the number of days in the fiscal year (366). |
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The Inspire ETFs |
SUPPLEMENTAL INFORMATION (Unaudited) |
November 30, 2020 |
Approval of the Investment Advisor Agreement – CWM Advisors, LLC dba Inspire
In connection with the Meeting of the Board of Trustees (the “Trustees”) of Northern Lights Fund Trust IV (the “Trust”), held on April 13- 14, 2020, the Trustees, including a majority of the Trustees who are not “interested persons,” as that term is defined in the Investment Company Act of 1940, as amended, discussed the approval of an investment advisory agreement (the “Inspire Advisory Agreement”) between CWM Advisors, LLC dba Inspire (the “Adviser”) and the Trust, with respect to the Inspire Tactical Balanced ESG ETF (“Inspire TBE “). In considering the approval of the Inspire Advisory Agreement, the Trustees received materials specifically relating to the Inspire Advisory Agreement.
The Trustees reviewed and discussed the materials that were provided in advance of the Meeting and deliberated on the approval of the Inspire Advisory Agreement. The Trustees relied upon the advice of independent legal counsel and their own business judgment in determining the material factors to be considered in evaluating the Inspire Advisory Agreement and the weight to be given to each factor considered. The conclusions reached by the Trustees were based on a comprehensive evaluation of all of the information provided and were not the result of any one factor. Moreover, each Trustee may have afforded different weight to the various factors in reaching his conclusions with respect to the approval of the Inspire Advisory Agreement.
Nature, Extent and Quality of Services. The Trustees noted that Inspire had approximately $640 million in assets under management and had been in operation since August 2015. The Trustees further noted that the Adviser currently advises five index Biblically Responsible Investing ETFs in the Trust and separately managed accounts using its proprietary selection methodology, Inspire Impact Score©. The Trustees noted the additional personnel to the portfolio management teams of Inspire TBE and their experience with the proposed investment strategies. After further discussion, the Trustees concluded that the Adviser has the ability to provide a level of service consistent with the Trustees’ expectations.
Performance.
The Trustees recognized that Inspire TBE has not yet begun operations, and has no prior investment performance.
Fees and Expenses.
The Trustees noted that Inspire TBE’s proposed advisory fee of 0.50% of its average net daily assets was higher than the advisory fee for the other Inspire ETFs but was lower than the Broadridge peer group average of 0.53% and lower than the Morningstar category average of 0.59%. They further noted that Inspire TBE’s net expense ratio was higher than its assigned Morningstar category median and category average. After further discussion, the Trustees concluded that the proposed advisory fee was not unreasonable.
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The Inspire ETFs |
SUPPLEMENTAL INFORMATION (Unaudited)(Continued) |
November 30, 2020 |
Profitability. The Trustees reviewed a profitability analysis provided by the Adviser and considered whether the level of anticipated profit was reasonable. It noted the Adviser anticipated realizing a profit in connection with its relationship with Inspire TBE, but agreed that such profit was not excessive, both in actual dollars and as a percentage of revenue, particularly considering the adviser’s expected reinvestment of legitimate profits into Inspire TBE. The Trustees concluded, after further discussion, that excessive profit was not a concern at this time.
Economies of Scale. The Trustees noted that economies of scale was not an issue at this time as Inspire TBE had not yet launched. The Trustees noted that consideration of economies of scale would be revisited to the extent assets of Inspire TBE grow significantly.
Conclusion. Having requested and received such information from the Adviser as the Trustees believed to be reasonably necessary to evaluate the terms of the Inspire Advisory Agreement, and as assisted by the advice of independent counsel, the Trustees determined that approval of the Inspire Advisory Agreement is in the best interests of Inspire TBE and its future shareholders.
87
The Inspire ETFs |
SUPPLEMENTAL INFORMATION (Unaudited) |
November 30, 2020 |
The business address of each Trustee and Officer is 225 Pictoria Drive, Suite 450, Cincinnati, OH 45246. All correspondence to the Trustees and Officers should be directed to c/o Gemini Fund Services, LLC, P.O. Box 541150, Omaha, Nebraska 68154.
Independent Trustees
Name and Year of Birth | Position/Term of Office* | Principal Occupation During the Past Five Years | Number of Funds in Fund Complex** Overseen by Trustee | Other Directorships held by Trustee During the Past Five Years |
Joseph Breslin Year of Birth: 1953 | Independent Trustee and Chairman of the Board since 2015 | President and Consultant, Adviser Counsel, Inc. (formerly J.E. Breslin & Co.) (management consulting firm to investment advisers), (since 2009); Senior Counsel, White Oak Global Advisors, LLC. (since 2016).
| 6 | Northern Lights Fund Trust IV (for series not affiliated with the Fund since 2015); Director, Kinetics Mutual Funds, Inc. (since 2000); Trustee, Kinetics Portfolios Trust (since 2000); Trustee, Forethought Variable Insurance Trust (since 2013); Trustee, BlueArc Multi-Strategy Fund (2014-2017); Hatteras Trust (2004-2016) |
Thomas Sarkany Year of Birth: 1946 | Independent Trustee since 2015 | Founder and President, TTS Consultants, LLC (financial services) (since 2010). | 6 | Northern Lights Fund Trust IV (for series not affiliated with the Fund since 2015); Arrow Investments Trust (since 2014), Arrow ETF Trust (since 2012), Trustee, Northern Lights Fund Trust II (since 2011); Director, Aquila Distributors (since 1981) |
Charles Ranson Year of Birth: 1947 | Independent Trustee since 2015 | Principal, Ranson & Associates (strategic analysis and planning, including risk assessment and capital formation for entrepreneurial ventures) (since 2003). | 6 | Northern Lights Fund Trust IV (for series not affiliated with the Fund since 2015); Advisors Preferred Trust (since November 2012) |
11/30/20 – NLFT IV_v1
88
The Inspire ETFs |
SUPPLEMENTAL INFORMATION (Unaudited) (Continued) |
November 30, 2020 |
Officers
Name and Year of Birth | Position/Term of Office* | Principal Occupation During the Past Five Years | Number of Funds in Fund Complex** Overseen by Trustee | Other Directorships held by Trustee During the Past Five Years |
Wendy Wang Year of Birth: 1970 | President since 2015 | Senior Vice President, Director of Tax and Compliance Administration, Gemini Fund Services, LLC (since 2012). | N/A | N/A |
Sam Singh Year of Birth: 1976 | Treasurer since 2015 | Vice President, Gemini Fund Services, LLC (since 2015); Assistant Vice President, Gemini Fund Services, LLC (2011-2014). | N/A | N/A |
Jennifer Farrell Year of Birth: 1969 | Secretary since 2017 | Manager, Legal Administration, Gemini Fund Services, LLC (since 2018); Senior Paralegal, Gemini Fund Services, LLC (since 2015); Legal Trainer, Gemini Fund Services, LLC (2013-2015); Senior Paralegal, Gemini Fund Services, LLC (2006-2012). | N/A | N/A |
James Ash Year of Birth: 1976 | Chief Compliance Officer since 2019 | Senior Compliance Officer, Northern Lights Compliance, LLC (since 2019); Senior Vice President, National Sales Gemini Fund Services, LLC (2017-2019); Senior Vice President and Director of Legal Administration, Gemini Fund Services, LLC (2012 - 2017). | N/A | N/A |
* | The term of office for each Trustee and officer listed above will continue indefinitely until the individual resigns or is removed. |
** | As of November 30,2020, the Trust was comprised of 20 active portfolios managed by unaffiliated investment advisers. The term “Fund Complex” applies only to the Fund and the six Funds managed by the same investment adviser. The Funds do not hold themselves out as related to any other series within the Trust for investment purposes, nor do they share the same investment adviser with any other series. |
The Fund’s SAI includes additional information about the Trustees and is available free of charge, upon request, by calling toll-free at 1-877-658-9473.
11/30/20 – NLFT IV_v1
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The Inspire ETFs |
Additional Information (Unaudited) |
November 30, 2020 |
LIQUIDITY RISK MANAGEMENT PROGRAM
The Funds have adopted and implemented a written liquidity risk management program as required by Rule 22e-4 (the “Liquidity Rule”) under the Investment Company Act. The program is reasonably designed to assess and manage the Funds’ liquidity risk, taking into consideration, among other factors, the Funds’ investment strategies and the liquidity of their portfolio investments during normal and reasonably foreseeable stressed conditions; their short and long-term cash flow projections; and their cash holdings and access to other funding sources.
During the year ended November 30, 2020, the Trust’s Liquidity Risk Management Program Committee (the “Committee”) reviewed the Funds’ investments and determined that the Funds held adequate levels of cash and highly liquid investments to meet shareholder redemption activities in accordance with applicable requirements. Accordingly, the Committee concluded that (i) the Funds’ liquidity risk management program is reasonably designed to prevent violations of the Liquidity Rule and (ii) the Funds’ liquidity risk management program has been effectively implemented.
90
PRIVACY NOTICE
Northern Lights Fund Trust IV
Rev. August 2015
FACTS | WHAT DOES NORTHERN LIGHTS FUND TRUST IV 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 wire transfer instructions
● 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 reasons Northern Lights Fund Trust IV chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information: | Does Northern Lights Fund Trust IV share information? | 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 - to offer our products and services to you. | NO | We don’t share |
For joint marketing with other financial companies. | NO | We don’t share |
For our affiliates’ everyday business purposes - information about your transactions and records. | NO | We don’t share |
For our affiliates’ everyday business purposes - information about your credit worthiness. | NO | We don’t share |
For nonaffiliates to market to you | NO | We don’t share |
QUESTIONS? | Call 1-402-493-4603 |
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PRIVACY NOTICE
Northern Lights Fund Trust IV
Page 2 |
What we do: | |
How does Northern Lights Fund Trust IV 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 Northern Lights Fund Trust IV collect my personal information? | We collect your personal information, for example, when you ● open an account or deposit money
● direct us to buy securities or direct us to sell your securities
● seek advice about your investments
We also collect your personal information from others, such as credit bureaus, affiliates, or 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.
● Northern Lights Fund Trust IV has no affiliates. |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
● Northern Lights Fund Trust IV does not share with nonaffiliates so they can market to you. |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
● Northern Lights Fund Trust IV does not jointly market. |
92
PROXY VOTING POLICY
Information regarding how the Funds voted proxies relating to portfolio securities for the most recent twelve-month period ended June 30 as well as a description of the policies and procedures that the Funds use to determine how to vote proxies is available without charge, upon request, by calling 1-877-658-9473 or by referring to the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.
PORTFOLIO HOLDINGS
Funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, within sixty days after the end of the period. Form N-PORT reports are available at the SEC’s website at www.sec.gov.
PREMIUM/DISCOUNT INFORMATION
Information regarding how often the Shares of each Fund traded on the exchange at a price above (i.e. at a premium) or below (i.e. at a discount) the NAV of the Fund during the past calendar year can be found at www.inspireinvesting.com.
INVESTMENT ADVISOR |
Inspire (CWM Advisors, LLC) |
650 San Benito Street |
Suite 130 |
Hollister, CA 95023 |
ADMINISTRATOR |
Gemini Fund Services, LLC |
4221 North 203rd Street, Suite 100 |
Elkhorn, NE 68022-3474 |
INSPIRE-A20 |
Item 2. Code of Ethics.
(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.
(b) For purposes of this item, “code of ethics” means written standards that are reasonably designed to deter wrongdoing and to promote:
(1) | Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; |
(2) | Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Commission and in other public communications made by the registrant; |
(3) Compliance with applicable governmental laws, rules, and regulations;
(4) | The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code; and |
(5) Accountability for adherence to the code.
(c) Amendments: During the period covered by the report, there have not been any amendments to the provisions of the code of ethics.
(d) Waivers: During the period covered by the report, the registrant has not granted any express or implicit waivers from the provisions of the code of ethics.
(e) The Code of Ethics is not posted on Registrant’ website.
(f) A copy of the Code of Ethics is attached as an exhibit.
Item 3. Audit Committee Financial Expert.
(a) The Registrant’s board of trustees has determined that Joseph Breslin is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Breslin is independent for purposes of this Item 3.
Item 4. Principal Accountant Fees and Services.
(a) | Audit Fees |
2020 – $72,000
2019 – $58,300
(b) | Audit-Related Fees |
2020 – None
2018 – None
(c) | Tax Fees |
2020 – $18,000
2019 – $11,000
Preparation of Federal & State income tax returns, assistance with calculation of required income, capital gain and excise distributions and preparation of Federal excise tax returns.
(d) | All Other Fees |
2020 - None
2019 - None
(e) | (1) Audit Committee’s Pre-Approval Policies |
The registrant’s Audit Committee is required to pre-approve all audit services and, when appropriate, any non-audit services (including audit-related, tax and all other services) to the registrant. The registrant’s Audit Committee also is required to pre-approve, when appropriate, any non-audit services (including audit-related, tax and all other services) to its adviser, or any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant, to the extent that the services may be determined to have an impact on the operations or financial reporting of the registrant. Services are reviewed on an engagement by engagement basis by the Audit Committee.
(2) | Percentages of Services Approved by the Audit Committee |
2020 2019
Audit-Related Fees: 0.00% 0.00%
Tax Fees: 0.00% 0.00%
All Other Fees: 0.00% 0.00%
(f) | During the audit of registrant's financial statements for the most recent fiscal year, less than 50 percent of the hours expended on the principal accountant's engagement were attributed to work performed by persons other than the principal accountant's full-time, permanent employees. |
(g) | The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant: |
2020 - $18,000
(h) The registrant's audit committee has considered whether the provision of non-audit services to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant's independence.
Item 5. Audit Committee of Listed Companies. Not applicable to open-end investment companies.
Item 6. Schedule of 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 Funds. 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 Funds. 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.
(a)(3) Not applicable for open-end investment companies.
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) Northern Lights Fund Trust IV
By (Signature and Title)
/s/ Wendy Wang
Wendy Wang, Principal Executive Officer/President
Date 2/5/21
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 persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)
/s/ Wendy Wang
Wendy Wang, Principal Executive Officer/President
Date 2/5/21
By (Signature and Title)
/s/ Sam Singh
Sam Singh, Principal Financial Officer/Treasurer
Date 2/5/21