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.
4221 North 203rd Street, Suite 100 Elkhorn, Nebrask 68022-3474
(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: 5/31/21
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) |
Inspire Faithward Mid Cap Momentum ESG ETF (GLRY) |
Inspire Faithward Large Cap Momentum ESG ETF (FEVR) |
Semi-Annual Report |
May 31, 2021 |
1-877-658-9473 |
www.inspireetf.com |
INSPIRE ETF SEMI-ANNUAL REPORT |
SHAREHOLDER LETTER (unaudited) |
Dear Shareholders:
We are honored to present you with the Semi-Annual Report for the Inspire Investing suite of Exchange Traded Funds (ETFs) as of May 31, 2021.
We believe the past six months ended May 31, 2021, have shown that the markets and the economy are well on the road to recovery from the global Covid-19 pandemic. The devastating effects of the pandemic have been felt all over the world since early in 2020, and some countries are still suffering. The vaccine roll-out here in the US and in other developed countries over the past six months has fueled the acceleration in the economy and the lifting of restrictions. We cannot say the pandemic is officially over as several emerging market countries are still dealing with a rise in cases and deaths. However, it is highly probable that as the treatments and vaccines that are now available get to these countries, the pandemic is closer to the end. There will be other challenges in the future but at Inspire we remain steadfast in our stance of Faith in our Lord as he promised in 2 Chronicles 7:14 “If my people, who are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land”.
We are thankful that the Lord has been faithful during the past six months and provided for our needs in amazing ways for His Glory. In the past six months, God continued to bless Inspire and has opened many opportunities to expand the biblically responsible investing (BRI) movement. We remain thankful as well for you, our shareholders, for being part of the BRI movement through the Inspire ETFs. 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 the Inspire ETFs.
BLES – Inspire Global Hope ETF
The recovery in the markets since the decline of the stock market in March 2020 has been amazing to say the least and the upward momentum has continued in the most recent six months. BLES is up for the past six months ended May 31, 2021, +23.85% on a market price basis and +23.00% on the NAV.
ISMD – Inspire Small/Mid Cap Impact ETF
The small cap and mid cap markets have outperformed the US large cap markets over the past six months ended May 31,2021 with ISMD returning +34.21% on a market price basis and +34.07% on the NAV.
IBD – Inspire Corporate Bond Impact ETF
The fear of inflation over the past six months has caused interest rates to rise and bond values to fall. This rise in interest rates across the yield curve caused negative total returns for IBD over the past six months. For the six months ended May 31, 2021, IBD is down -1.16% on a market price basis and down -0.71% on the NAV.
1
BIBL – Inspire 100 ETF
BIBL was able to benefit from the momentum in the US large cap markets to finish the past six months ended May 31,2021 with a return of +17.39% on a market price basis and +17.37% on the NAV.
WWJD – Inspire International ESG ETF
WWJD has been the beneficiary of a strong global recovery over the past six months in both the international developed countries as well as emerging markets. International and emerging markets are starting to play a positive role in portfolios and we believe this momentum should continue into 2022. For the six months ended May 31, 2021, WWJD is up +22.88% on a market price basis and +22.55% on the NAV.
RISN – Inspire Tactical Balanced ESG
As one of our newest ETFs in the past year, 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 a year, the performance has been positive so far. For the six months ended May 31, 2021, RISN is up +14.30% on a market price basis and +13.35% on the NAV.
GLRY – Inspire Faithward Mid Cap Momentum ESG
Over the past six months the Lord Blessed us as we were able to launch GLRY as our 7th ETF on 12-07-2020. GLRY is focused on US mid cap stocks that the manager believes have the potential of outperformance over a market cycle. Although the Fund has only been in existence for less than six months, the performance has been positive so far. Since inception, (12-07-2020), GLRY has returned +17.84% on a market price basis and +17.88% on the NAV.
FEVR – Inspire Faithward Large Cap Momentum ESG
Over the past six months the Lord Blessed us as we were able to launch FEVR as our 8th ETF on 12-07-2020. FEVR is focused on US large cap stocks that the manager believes have the potential of outperformance over a market cycle. Although the Fund has only been in existence for less than six months, the performance has been positive so far. Since inception, (12-07-2020), FEVR has returned +5.48% on a market price basis and +5.44% on the NAV.
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Closing Comments
Although the first six months of the fiscal year have been full of blessings and a return to positive markets, we know that challenges will come again in the future. We are grateful to God our Father, for His provision and wisdom in good times as well as in challenging times. Whatever the future holds, we remain thankful to be a 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.
We do not know what economic or geo-political situations will come in the next six months, but this we know - God is still in control, and our trust is in Him, not in politicians, economists 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
There is no guarantee that the Funds will achieve their objectives, 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. Certain Funds track an underlying index and may focus their investments in securities of a particular industry to the extent the underlying index does. This may cause those Funds’ net asset value to fluctuate more than that of a fund that does not focus in a particular industry.
Certain of the Funds are not actively managed, and the Adviser will not sell shares of an equity security of those funds due to current or projected underperformance of a security, industry or sector, unless that security is removed from the underlying index or the selling of shares of that security is otherwise required upon a rebalancing of the underlying index as addressed in its methodology. Tracking error may occur because of imperfect correlation between a Fund’s holdings of portfolio securities and those in the underlying index. Certain Funds’ use of a representative sampling approach, if used, could result in its holding a smaller number of securities than are in the underlying index. To the extent the assets in the Funds are smaller, these risks will be greater.
3
Inspire Global Hope ETF |
PORTFOLIO REVIEW (Unaudited) |
May 31, 2021 |
The Fund’s performance figures* for the periods ended May 31, 2021, as compared to its benchmarks:
Annualized | ||||
Annualized | Since Inception** - | |||
Six Months | One Year | Three Year | May 31, 2021 | |
Inspire Global Hope ETF - NAV | 23.00% | 56.37% | 14.33% | 13.55% |
Inspire Global Hope ETF - Market Price | 23.85% | 56.76% | 14.17% | 13.62% |
Inspire Global Hope Large Cap Equal Weight Index *** | 23.01% | 55.40% | 14.37% | 13.75% |
S&P Global 1200 Total Return Index **** | 16.96% | 41.51% | 14.86% | 14.62% |
* | 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.inspireetf.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. Since 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 0.61% per the March 30, 2021 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) |
May 31, 2021 |
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Real Estate Investment Trusts | 7.0 | % | ||
Chemicals | 6.1 | % | ||
Oil & Gas Producers | 6.1 | % | ||
Banking | 5.8 | % | ||
Transportation & Logistics | 5.0 | % | ||
Medical Equipment & Devices | 4.9 | % | ||
Metals & Mining | 4.3 | % | ||
Electric Utilities | 4.2 | % | ||
Semiconductors | 4.0 | % | ||
Retail - Discretionary | 3.9 | % | ||
Money Market | 2.3 | % | ||
Other Sectors | 46.3 | % | ||
Other Assets Less Liabilities | 0.1 | % | ||
100.0 | % | |||
Please refer to the Portfolio of Investments in this Semi-Annual Report for a detailed listing of the Fund’s holdings.
5
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO REVIEW (Unaudited) |
May 31, 2021 |
The Fund’s performance figures* for the periods ended May 31, 2021, as compared to its benchmarks:
Annualized | ||||
Annualized | Since Inception** - | |||
Six Months | One Year | Three Year | May 31, 2021 | |
Inspire Small/Mid Cap Impact ETF - NAV | 34.07% | 67.52% | 11.62% | 11.67% |
Inspire Small/Mid Cap Impact ETF - Market Price | 34.21% | 67.08% | 11.65% | 11.71% |
Inspire Small/Mid Cap Impact Equal Weight Index *** | 36.15% | 74.71% | 13.16% | 13.18% |
S&P SmallCap 600 Equal Weight Total Return Index **** | 41.76% | 93.18% | 14.40% | 14.27% |
* | 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 May 31, 2021. 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.inspireetf.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. Since 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, 2022 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 0.57% per the March 30, 2021 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) |
May 31, 2021 |
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Banking | 10.2 | % | ||
Real Estate Investment Trusts | 7.9 | % | ||
Retail - Discretionary | 4.6 | % | ||
Semiconductors | 4.0 | % | ||
Chemicals | 3.9 | % | ||
Commercial Support Services | 3.5 | % | ||
Oil & Gas Producers | 3.2 | % | ||
Biotechnology & Pharmaceuticals | 3.1 | % | ||
Home Construction | 3.1 | % | ||
Machinery | 3.1 | % | ||
Money Market Fund | 11.4 | % | ||
Other Sectors | 52.6 | % | ||
Liabilities in Excess of Other Assets | (10.6 | )% | ||
100.0 | % | |||
Please refer to the Portfolio of Investments in this Semi-Annual Report for a detailed listing of the Fund’s holdings.
7
Inspire Corporate Bond Impact ETF |
PORTFOLIO REVIEW (Unaudited) |
May 31, 2021 |
The Fund’s performance figures* for the periods ended May 31, 2021, as compared to its benchmarks:
Annualized | ||||
Annualized | Since Inception** - | |||
Six Months | One Year | Three Year | May 31, 2021 | |
Inspire Corporate Bond Impact ETF - NAV | (0.71)% | 2.54% | 4.42% | 3.19% |
Inspire Corporate Bond Impact ETF - Market Price | (1.16)% | 2.14% | 4.38% | 3.19% |
Inspire Corporate Bond Impact Equal Weight Index *** | (0.32)% | 4.86% | 6.67% | 5.13% |
Bloomberg Barclays U.S. Intermediate Credit Total Return Index **** | (0.41)% | 3.36% | 5.61% | 4.25% |
* | 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.inspireetf.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. Since 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 0.49% per the March 30, 2021 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) |
May 31, 2021 |
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Real Estate Investment Trusts | 20.0 | % | ||
Oil & Gas Producers | 13.3 | % | ||
Transportation & Logistics | 6.1 | % | ||
Retail - Discretionary | 6.0 | % | ||
Oil & Gas Services & Equipment | 4.6 | % | ||
Semiconductors | 4.5 | % | ||
Electric Utilities | 4.4 | % | ||
Electrical Equipment | 4.1 | % | ||
Commercial Support Services | 3.6 | % | ||
Wholesale - Consumer Staples | 3.5 | % | ||
Other Sectors | 27.6 | % | ||
Other Assets Less Liabilities | 2.3 | % | ||
100.0 | % | |||
Please refer to the Portfolio of Investments in this Semi-Annual Report for a detailed listing of the Fund’s holdings.
9
Inspire 100 ETF |
PORTFOLIO REVIEW (Unaudited) |
May 31, 2021 |
The Fund’s performance figures* for the periods ended May 31, 2021, as compared to its benchmarks:
Annualized | ||||
Annualized | Since Inception** - | |||
Six Months | One Year | Three Year | May 31, 2021 | |
Inspire 100 ETF - NAV | 17.37% | 41.98% | 18.02% | 17.09% |
Inspire 100 ETF - Market Price | 17.39% | 41.89% | 17.97% | 17.11% |
Inspire 100 Index *** | 17.70% | 46.11% | 19.22% | 18.24% |
S&P 500 Total Return Index **** | 16.95% | 40.32% | 18.00% | 16.88% |
* | 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.inspireetf.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. Since 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, 2022 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 0.48% per the March 30, 2021 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) |
May 31, 2021 |
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Semiconductors | 12.0 | % | ||
Real Estate Investment Trusts | 10.9 | % | ||
Diversified Industrials | 6.9 | % | ||
Electric Utilities | 6.7 | % | ||
Transportation & Logistics | 5.6 | % | ||
Technology Services | 5.5 | % | ||
Medical Equipment & Devices | 5.3 | % | ||
Biotechnology & Pharmaceuticals | 4.8 | % | ||
Retail - Discretionary | 4.0 | % | ||
Machinery | 3.8 | % | ||
Money Market | 0.8 | % | ||
Other Sectors | 34.0 | % | ||
Liabilities in Excess of Other Assets | (0.3 | )% | ||
100.0 | % | |||
Please refer to the Portfolio of Investments in this Semi-Annual Report for a detailed listing of the Fund’s holdings.
11
Inspire International ESG ETF |
PORTFOLIO REVIEW (Unaudited) |
May 31, 2021 |
The Fund’s performance figures* for the periods ended May 31, 2021, as compared to its benchmarks:
Annualized | |||
Since Inception** - | |||
Six Months | One Year | May 31, 2021 | |
Inspire International ESG ETF - NAV | 22.55% | 58.36% | 25.42% |
Inspire International ESG ETF - Market Price | 22.88% | 57.08% | 25.52% |
Inspire Global Hope Ex-US Index *** | 20.33% | 57.27% | 21.42% |
S&P International 700 Total Return Index **** | 16.92% | 43.66% | 19.13% |
* | 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.inspireetf.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. Since 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 0.94% per the March 30, 2021 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) |
May 31, 2021 |
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Banking | 12.3 | % | ||
Chemicals | 8.1 | % | ||
Metals & Mining | 7.8 | % | ||
Transportation & Logistics | 5.5 | % | ||
Medical Equipment & Devices | 4.0 | % | ||
Oil & Gas Producers | 3.9 | % | ||
Electrical Equipment | 3.9 | % | ||
Real Estate Investment Trusts | 3.8 | % | ||
Insurance | 3.7 | % | ||
Electric Utilities | 3.6 | % | ||
Money Market | 8.0 | % | ||
Other Sectors | 41.2 | % | ||
Liabilities in Excess of Other Assets | (5.8 | )% | ||
100.0 | % | |||
Please refer to the Portfolio of Investments in this Semi-Annual Report for a detailed listing of the Fund’s holdings.
13
Inspire Tactical Balanced ESG ETF |
PORTFOLIO REVIEW (Unaudited) |
May 31, 2021 |
The Fund’s performance figures* for the periods ended May 31, 2021, as compared to its benchmark:
Since Inception** - | ||
Six Months | May 31, 2021 | |
Inspire Tactical Balanced ESG ETF - NAV | 13.35% | 19.22% |
Inspire Tactical Balanced ESG ETF - Market Price | 14.30% | 19.30% |
S&P Target Risk Moderate Index *** | 6.09% | 12.02% |
* | 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.inspireetf.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. Since 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 0.82%s per the March 30, 2021 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) |
May 31, 2021 |
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Exchange Traded Fund Fixed Income | 14.6 | % | ||
Closed End Fund Commodity | 5.0 | % | ||
Common Stock Semiconductors | 10.6 | % | ||
Real Estate Investment Trusts | 9.0 | % | ||
Electric Utilities | 5.6 | % | ||
Diversified Industrials | 5.3 | % | ||
Medical Equipment & Devices | 4.5 | % | ||
Technology Services | 4.4 | % | ||
Biotechnology & Pharmaceuticals | 3.8 | % | ||
Retail - Discretionary | 3.2 | % | ||
Electrical Equipment | 3.0 | % | ||
Machinery | 2.8 | % | ||
Money Market | 0.5 | % | ||
Other Sectors | 27.2 | % | ||
Other Assets Less Liabilities | 0.5 | % | ||
100.0 | % | |||
Please refer to the Portfolio of Investments in this Semi-Annual Report for a detailed listing of the Fund’s holdings.
15
Inspire Faithward Mid Cap Momentum ESG ETF |
PORTFOLIO REVIEW (Unaudited) |
May 31, 2021 |
The Fund’s performance figures* for the periods ended May 31, 2021, as compared to its benchmark:
Since Inception** - | |
May 31, 2021 | |
Inspire Faithward Mid Cap Momentum ESG ETF - NAV | 17.88% |
Inspire Faithward Mid Cap Momentum ESG ETF - Market Price | 17.84% |
S&P MidCap 400 Index TR | 22.69% |
* | 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. Total returns are calculated with the traded NAV on May 31, 2021. 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.inspireetf.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. Market price returns are calculated using the closing price and account 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 0.85% for the first full year of operations per the November 28, 2020 prospectus.
** | As of the commencement of operations on December 7, 2020. |
*** | The S&P MidCap 400® provides investors with a benchmark for mid-sized companies. The index, which is distinct from the large-cap S&P 500®, is designed to measure the performance of 400 mid-sized companies, reflecting the distinctive risk and return characteristics of this market segment. 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.
16
Inspire Faithward Mid Cap Momentum ESG ETF |
PORTFOLIO REVIEW (Unaudited)(Continued) |
May 31, 2021 |
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Health Care Facilities & Services | 8.8 | % | ||
Leisure Products | 8.8 | % | ||
Retail - Discretionary | 8.7 | % | ||
Internet Media & Services | 6.7 | % | ||
Beverages | 4.5 | % | ||
Industrial Support Services | 4.5 | % | ||
Oil & Gas Producers | 4.5 | % | ||
Asset Management | 4.4 | % | ||
Software | 4.4 | % | ||
Technology Services | 4.4 | % | ||
Other Sectors | 39.5 | % | ||
Other Assets Less Liabilities | 0.8 | % | ||
100.0 | % | |||
Please refer to the Portfolio of Investments in this Semi-Annual Report for a detailed listing of the Fund’s holdings.
17
Inspire Faithward Large Cap Momentum ESG ETF |
PORTFOLIO REVIEW (Unaudited) |
May 31, 2021 |
The Fund’s performance figures* for the periods ended May 31, 2021, as compared to its benchmark:
Since Inception** - | |
May 31, 2021 | |
Inspire Faithward Large Cap Momentum ESG ETF - NAV | 5.44% |
Inspire Faithward Large Cap Momentum ESG ETF - Market Price | 5.48% |
S&P 500 Total Return Index *** | 14.68% |
* | 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.inspireetf.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. Market price returns are calculated using the closing price and account 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 0.85% for the first full year of operations per the November 28, 2020 prospectus.
** | As of the commencement of operations on December 7, 2020. |
*** | 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.
18
Inspire Faithward Large Cap Momentum ESG ETF |
PORTFOLIO REVIEW (Unaudited)(Continued) |
May 31, 2021 |
The Fund’s Top Sectors are as follows:
Sectors | % of Net Assets | |||
Software | 18.6 | % | ||
Semiconductors | 9.4 | % | ||
Medical Equipment & Devices | 9.2 | % | ||
Banking | 4.6 | % | ||
Technology Hardware | 4.6 | % | ||
Entertainment Content | 4.5 | % | ||
Real Estate Investment Trusts | 4.5 | % | ||
Gas & Water Utilities | 2.3 | % | ||
Technology Services | 2.3 | % | ||
Telecommunications | 2.3 | % | ||
Other Sectors | 36.8 | % | ||
Other Assets Less Liabilities | 0.9 | % | ||
100.0 | % | |||
Please refer to the Portfolio of Investments in this Semi-Annual Report for a detailed listing of the Fund’s holdings.
19
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) |
May 31, 2021 |
Shares | Value | |||||||
COMMON STOCKS - 97.6% | ||||||||
APPAREL & TEXTILE PRODUCTS - 0.8% | ||||||||
675 | Burberry Group PLC * | $ | 20,443 | |||||
4,392 | Cie Financiere Richemont SA | 533,354 | ||||||
1,440 | Swatch Group AG | 521,571 | ||||||
1,075,368 | ||||||||
ASSET MANAGEMENT - 1.4% | ||||||||
14,760 | Franklin Resources, Inc. | 504,940 | ||||||
4,032 | Groupe Bruxelles Lambert SA | 457,760 | ||||||
182,448 | Melrose Industries PLC | 446,748 | ||||||
360 | Partners Group Holding AG | 543,970 | ||||||
1,953,418 | ||||||||
AUTOMOTIVE - 1.6% | ||||||||
3,024 | Aptiv PLC * | 454,870 | ||||||
9,720 | BorgWarner, Inc. | 498,539 | ||||||
2,880 | Cie Generale des Etablissements Michelin | 440,639 | ||||||
12,024 | Nokian Renkaat OYJ | 481,595 | ||||||
12,672 | Valeo SA | 416,937 | ||||||
2,292,580 | ||||||||
BANKING - 5.8% | ||||||||
54,000 | Bank Hapoalim BM * | 473,604 | ||||||
64,152 | Bank Leumi Le-Israel BM * | 514,669 | ||||||
66,672 | Commerzbank AG * | 537,572 | ||||||
6,408 | Commonwealth Bank of Australia | 496,791 | ||||||
29,664 | Credit Agricole S.A. ^ | 444,536 | ||||||
22,248 | Danske Bank A/S | 418,914 | ||||||
144,936 | Investec plc | 637,659 | ||||||
61,341 | Itau Unibanco Holding S.A. | 349,245 | ||||||
5,760 | KBC Group N.V. | 471,372 | ||||||
3,672 | Macquarie Group Ltd. | 431,632 | ||||||
7,488 | mBank S.A. * | 610,277 | ||||||
370,323 | Metropolitan Bank & Trust Company | 378,865 | ||||||
21,384 | National Australia Bank Ltd. | 446,606 | ||||||
88,488 | Natixis S.A. ^ | 437,419 | ||||||
49,824 | Nedbank Group Ltd. * | 579,113 | ||||||
24,408 | People’s United Financial, Inc. | 461,555 | ||||||
19,440 | Raiffeisen Bank International A.G. | 463,434 | ||||||
8,153,263 | ||||||||
BIOTECHNOLOGY & PHARMACEUTICAL - 1.6% | ||||||||
2,808 | Alexion Pharmaceuticals, Inc. * | 495,752 | ||||||
5,400 | Incyte Corp. * | 452,412 | ||||||
936 | Regeneron Pharmaceuticals, Inc. * | 470,274 | ||||||
3,022 | Seagen, Inc. * | 469,468 | ||||||
2,016 | Vertex Pharmaceuticals, Inc. * | 420,598 | ||||||
2,308,504 | ||||||||
CHEMICALS - 6.1% | ||||||||
2,592 | Air Liquide S.A. | 440,653 | ||||||
1,886,040 | AKR Corporindo Tbk P.T. | 427,775 | ||||||
See accompanying notes to financial statements.
20
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
CHEMICALS (continued) - 6.1% | ||||||||
3,816 | Akzo Nobel N.V. | $ | 486,229 | |||||
3,456 | Arkema S.A. | 457,830 | ||||||
2,376 | Avery Dennison Corporation | 523,979 | ||||||
5,040 | Brenntag S.E. | 473,231 | ||||||
9,432 | CF Industries Holdings, Inc. | 501,499 | ||||||
4,824 | Croda International PLC | 477,959 | ||||||
3,888 | Eastman Chemical Company | 487,555 | ||||||
111 | Givaudan S.A. | 496,389 | ||||||
70,560 | ICL Group Ltd. | 503,325 | ||||||
8,640 | Imerys S.A. | 451,304 | ||||||
3,096 | International Flavors & Fragrances, Inc. | 438,610 | ||||||
10,296 | Johnson Matthey PLC | 444,661 | ||||||
42,264 | K+S A.G. | 584,343 | ||||||
4,104 | LyondellBasell Industries N.V. | 462,192 | ||||||
13,968 | The Mosaic Company | 504,804 | ||||||
2,880 | PPG Industries, Inc. | 517,594 | ||||||
8,679,932 | ||||||||
COMMERCIAL SUPPORT SERVICES - 2.2% | ||||||||
14,976 | Bureau Veritas S.A. * | 459,177 | ||||||
1,224 | Cintas Corporation | 432,733 | ||||||
7,992 | Edenred | 440,140 | ||||||
5,544 | Intertek Group plc | 426,672 | ||||||
5,904 | Randstad N.V. | 459,566 | ||||||
4,320 | Republic Services, Inc. | 471,658 | ||||||
3,384 | Waste Management, Inc. | 476,061 | ||||||
3,166,007 | ||||||||
CONSTRUCTION MATERIALS - 1.6% | ||||||||
17,043 | ACC Ltd. | 467,102 | ||||||
7,344 | Holcim Ltd. | 439,963 | ||||||
14,184 | James Hardie Industries PLC - ADR | 463,869 | ||||||
1,296 | Martin Marietta Materials, Inc. | 471,290 | ||||||
2,664 | Vulcan Materials Company | 488,364 | ||||||
2,330,588 | ||||||||
CONSUMER SERVICES - 0.2% | ||||||||
406,341 | Cogna Educacao * | 332,279 | ||||||
CONTAINERS & PACKAGING - 2.0% | ||||||||
37,008 | Amcor PLC | 435,103 | ||||||
54,144 | Brambles Ltd. | 452,904 | ||||||
8,064 | International Paper Company | 508,838 | ||||||
16,488 | Mondi PLC | 445,693 | ||||||
9,360 | Sealed Air Corporation | 532,210 | ||||||
8,568 | Westrock Company | 499,686 | ||||||
2,874,434 | ||||||||
DIVERSIFIED INDUSTRIALS - 2.0% | ||||||||
13,464 | Alfa Laval A.B. | 501,555 | ||||||
3,096 | Dover Corporation | 465,948 | ||||||
See accompanying notes to financial statements.
21
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
DIVERSIFIED INDUSTRIALS (continued) - 2.0% | ||||||||
4,824 | Emerson Electric Company | $ | 461,609 | |||||
2,016 | Honeywell International, Inc. | 465,515 | ||||||
1,944 | Illinois Tool Works, Inc. | 450,541 | ||||||
7,056 | Pentair PLC | 486,652 | ||||||
2,831,820 | ||||||||
ELECTRIC UTILITIES - 4.2% | ||||||||
386,676 | Aboitiz Equity Ventures, Inc. | 323,595 | ||||||
54,000 | AGL Energy Ltd. | 344,291 | ||||||
8,712 | Avangrid, Inc. | 458,948 | ||||||
19,440 | CenterPoint Energy, Inc. | 491,832 | ||||||
155,096 | Cia Energetica de Minas Gerais | 406,916 | ||||||
42,408 | Enel SpA | 420,662 | ||||||
4,320 | Entergy Corporation | 454,723 | ||||||
12,312 | FirstEnergy Corporation | 466,748 | ||||||
270,549 | NTPC Ltd. | 406,893 | ||||||
118,008 | Origin Energy Ltd. | 371,191 | ||||||
5,328 | Pinnacle West Capital Corporation | 450,642 | ||||||
14,832 | PPL Corporation | 431,760 | ||||||
16,488 | The AES Corporation | 418,960 | ||||||
4,608 | WEC Energy Group, Inc. | 432,737 | ||||||
5,879,898 | ||||||||
ELECTRICAL EQUIPMENT - 2.7% | ||||||||
13,608 | ABB Ltd. | 463,856 | ||||||
4,104 | Allegion PLC | 576,530 | ||||||
3,456 | AMETEK, Inc. | 466,906 | ||||||
7,200 | Johnson Controls International PLC | 479,088 | ||||||
5,256 | Kone OYJ | 427,310 | ||||||
13,608 | Prysmian SpA | 469,615 | ||||||
1,008 | Roper Technologies, Inc. | 453,610 | ||||||
1,440 | Schindler Holding AG | 428,456 | ||||||
3,765,371 | ||||||||
ENGINEERING & CONSTRUCTION - 1.3% | ||||||||
13,464 | Boskalis Westminster | 458,905 | ||||||
21,384 | Fluor Corporation * | 395,604 | ||||||
3,456 | Jacobs Engineering Group, Inc. | 491,028 | ||||||
4,032 | Vinci SA | 458,742 | ||||||
1,804,279 | ||||||||
FOOD - 1.5% | ||||||||
13,248 | Associated British Foods PLC | 435,970 | ||||||
4,824 | McCormick & Company, Inc. | 429,625 | ||||||
43,056 | Orkla ASA | 449,538 | ||||||
303,807 | Sime Darby Plantation Bhd | 333,684 | ||||||
3,456 | The J M Smucker Company ^ | 460,650 | ||||||
2,109,467 | ||||||||
FORESTRY, PAPER & WOOD PRODUCTS - 0.3% | ||||||||
11,160 | UPM-Kymmene OYJ | 425,918 | ||||||
See accompanying notes to financial statements.
22
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
GAS & WATER UTILITIES - 0.6% | ||||||||
44,229 | Cia de Saneamento Basico do Estado de Sao Paulo | $ | 338,975 | |||||
17,712 | NiSource, Inc. | 451,656 | ||||||
790,631 | ||||||||
HEALTH CARE FACILITIES & SERVICES - 1.9% | ||||||||
3,672 | AmerisourceBergen Corporation | 421,325 | ||||||
6,488 | Centene Corporation * | 477,517 | ||||||
3,888 | DaVita, Inc. * | 466,832 | ||||||
2,304 | HCA Healthcare, Inc. | 494,876 | ||||||
6,408 | Henry Schein, Inc. * | 487,264 | ||||||
8,208 | Ramsay Health Care Ltd. | 400,940 | ||||||
2,748,754 | ||||||||
HOME & OFFICE PRODUCTS - 0.4% | ||||||||
9,576 | Leggett & Platt, Inc. ^ | 526,967 | ||||||
HOME CONSTRUCTION - 1.7% | ||||||||
5,040 | DR Horton, Inc. | 480,262 | ||||||
648 | Geberit A.G. | 470,710 | ||||||
4,464 | Lennar Corporation | 441,981 | ||||||
2,304 | Mohawk Industries, Inc. * | 485,407 | ||||||
10,440 | Persimmon PLC | 467,755 | ||||||
2,346,115 | ||||||||
INDUSTRIAL SUPPORT SERVICES - 1.4% | ||||||||
8,784 | Fastenal Company | 465,903 | ||||||
3,600 | Ferguson PLC | 489,193 | ||||||
21,168 | Rexel SA | 430,365 | ||||||
1,368 | United Rentals, Inc. * | 456,857 | ||||||
1,842,318 | ||||||||
INSTITUTIONAL FINANCIAL SERVICES - 0.6% | ||||||||
3,744 | Intercontinental Exchange, Inc. | 422,623 | ||||||
4,392 | London Stock Exchange Group PLC | 471,648 | ||||||
894,271 | ||||||||
INSURANCE - 3.5% | ||||||||
2,952 | Assurant, Inc. | 475,715 | ||||||
4,032 | Cincinnati Financial Corporation | 490,735 | ||||||
97,560 | Direct Line Insurance Group PLC | 411,242 | ||||||
17,424 | Gjensidige Forsikring ASA | 392,763 | ||||||
4,392 | Globe Life, Inc. | 463,005 | ||||||
114,408 | Insurance Australia Group Ltd. | 440,132 | ||||||
113,184 | Legal & General Group PLC | 456,239 | ||||||
360 | Markel Corporation * | 441,176 | ||||||
45,288 | RSA Insurance Group LTD | 439,336 | ||||||
9,720 | Sampo OYJ | 462,250 | ||||||
16,200 | Unum Group | 501,714 | ||||||
4,974,307 | ||||||||
INTERNET MEDIA & SERVICES - 1.0% | ||||||||
1,800 | Naspers Ltd | 396,365 | ||||||
11,160 | Trip.com Group Ltd. - ADR * | 467,046 | ||||||
See accompanying notes to financial statements.
23
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
INTERNET MEDIA & SERVICES (continued) - 1.0% | ||||||||
2,160 | VeriSign, Inc. * | $ | 475,027 | |||||
1,338,438 | ||||||||
LEISURE FACILITIES & SERVICES - 0.3% | ||||||||
9,126 | Whitbread PLC * | 415,789 | ||||||
MACHINERY - 2.0% | ||||||||
11,160 | Flowserve Corporation ^ | 473,072 | ||||||
23,976 | IMI PLC | 564,307 | ||||||
1,368 | Parker-Hannifin Corporation ^ | 421,549 | ||||||
15,624 | Sandvik AB | 415,111 | ||||||
1,944 | Snap-on, Inc. | 494,981 | ||||||
53,268 | WEG SA | 350,615 | ||||||
2,719,635 | ||||||||
MEDICAL EQUIPMENT & DEVICES - 4.9% | ||||||||
3,528 | Agilent Technologies, Inc. | 487,323 | ||||||
2,592 | Cochlear Ltd. | 450,078 | ||||||
2,808 | Coloplast A/S | 445,979 | ||||||
10,224 | Demant A/S * | 546,131 | ||||||
6,984 | Dentsply Sirona, Inc. | 467,369 | ||||||
5,256 | Edwards Lifesciences Corporation * | 504,050 | ||||||
2,664 | Essilor International SA ^ | 462,694 | ||||||
864 | IDEXX Laboratories, Inc. * | 482,207 | ||||||
1,008 | Illumina, Inc. * | 408,885 | ||||||
576 | Intuitive Surgical, Inc. * | 485,096 | ||||||
360 | Mettler-Toledo International, Inc.* | 468,342 | ||||||
2,160 | ResMed, Inc. | 444,636 | ||||||
22,968 | Smith & Nephew PLC | 501,667 | ||||||
232,461 | Top Glove Corp Bhd | 286,253 | ||||||
1,584 | Waters Corporation * | 510,444 | ||||||
6,951,154 | ||||||||
METALS & MINING - 4.3% | ||||||||
4,972,968 | Adaro Energy Tbk PT | 407,306 | ||||||
11,088 | Anglo American PLC | 492,858 | ||||||
18,288 | Antofagasta PLC | 400,484 | ||||||
14,976 | BHP Group PLC | 450,792 | ||||||
11,376 | Boliden A.B. | 456,035 | ||||||
11,060 | Boliden A.B. Redemption Shares * | 7,948 | ||||||
28,656 | Fortescue Metals Group Ltd. | 488,683 | ||||||
13,392 | Freeport-McMoRan, Inc. | 572,106 | ||||||
33,912 | Fresnillo PLC | 431,586 | ||||||
88,200 | Grupo Mexico SAB de CV | 422,557 | ||||||
22,104 | Newcrest Mining Ltd. | 479,195 | ||||||
6,984 | Newmont Corporation | 513,184 | ||||||
72,792 | Norsk Hydro ASA | 471,998 | ||||||
5,688 | Rio Tinto PLC | 489,046 | ||||||
6,083,778 | ||||||||
See accompanying notes to financial statements.
24
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
OIL & GAS PRODUCERS - 6.1% | ||||||||
22,248 | Ampol Ltd. | $ | 500,327 | |||||
22,752 | APA Corporation | 473,242 | ||||||
23,184 | Cabot Oil & Gas Corporation ^ | 380,218 | ||||||
5,904 | Cheniere Energy, Inc. * | 501,250 | ||||||
102,120 | Cosan S.A. | 430,442 | ||||||
18,936 | Devon Energy Corporation | 502,940 | ||||||
34,920 | Eni SpA | 429,377 | ||||||
5,832 | EOG Resources, Inc. | 468,543 | ||||||
24,048 | EQT Corporation * ^ | 502,122 | ||||||
21,600 | Equinor ASA | 469,654 | ||||||
26,064 | Kinder Morgan, Inc. | 478,014 | ||||||
8,496 | Koninklijke Vopak N.V. | 402,178 | ||||||
7,920 | Marathon Petroleum Corporation | 489,456 | ||||||
15,624 | Occidental Petroleum Corporation | 405,599 | ||||||
8,640 | ONEOK, Inc. | 455,674 | ||||||
69,138 | Petroleo Brasileiro S.A. | 356,961 | ||||||
2,592 | Pioneer Natural Resources | 394,477 | ||||||
18,000 | The Williams Companies, Inc. | 474,120 | ||||||
5,904 | Valero Energy Corporation | 474,682 | ||||||
8,589,276 | ||||||||
OIL & GAS SERVICES & EQUIPMENT - 1.3% | ||||||||
19,800 | Halliburton Co. | 444,510 | ||||||
15,480 | Helmerich & Payne, Inc. | 437,310 | ||||||
31,104 | NOV, Inc. * | 501,396 | ||||||
55,440 | TechnipFMC PLC * | 476,230 | ||||||
1,859,446 | ||||||||
REAL ESTATE INVESTMENT TRUSTS - 7.0% | ||||||||
1,872 | American Tower Corporation | 478,221 | ||||||
9,648 | Apartment Income REIT Corporation | 449,404 | ||||||
2,304 | AvalonBay Communities, Inc. | 476,790 | ||||||
4,113 | Boston Properties, Inc. | 483,524 | ||||||
4,968 | Covivio | 468,165 | ||||||
2,520 | Crown Castle International | 477,540 | ||||||
57,888 | Dexus | 463,247 | ||||||
648 | Equinix, Inc. | 477,395 | ||||||
5,904 | Equity Residential | 457,265 | ||||||
1,512 | Essex Property Trust, Inc. | 446,478 | ||||||
30,312 | Goodman Group | 451,724 | ||||||
13,464 | Healthpeak Properties, Inc. | 449,428 | ||||||
23,112 | Kimco Realty Corporation | 492,517 | ||||||
44,280 | Land Securities Group plc | 441,486 | ||||||
4,032 | Prologis, Inc. | 475,131 | ||||||
1,728 | Public Storage | 488,125 | ||||||
3,888 | Simon Property Group, Inc. | 499,569 | ||||||
6,057 | SL Green Realty Corporation ^ | 479,836 | ||||||
59,976 | The British Land Company PLC | 433,689 | ||||||
120,096 | The GPT Group | 429,609 | ||||||
See accompanying notes to financial statements.
25
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
REAL ESTATE INVESTMENT TRUSTS (continued) - 7.0% | ||||||||
35,280 | The Macerich Company | $ | 561,305 | |||||
9,880,448 | ||||||||
REAL ESTATE OWNERS & DEVELOPERS - 0.8% | ||||||||
22,218 | Ayala Corporation | 362,107 | ||||||
438,357 | Ayala Land, Inc. | 316,404 | ||||||
225,072 | Mirvac Group | 487,589 | ||||||
1,166,100 | ||||||||
RENEWABLE ENERGY - 0.3% | ||||||||
11,880 | Vestas Wind Systems A/S | 464,703 | ||||||
RETAIL - CONSUMER STAPLES - 0.9% | ||||||||
1,224 | Costco Wholesale Corp. | 463,002 | ||||||
3,816 | Dollar Tree, Inc. * | 372,060 | ||||||
172,080 | Wm Morrison Supermarkets PLC | 431,486 | ||||||
1,266,548 | ||||||||
RETAIL - DISCRETIONARY - 3.9% | ||||||||
288 | AutoZone, Inc. * | 405,101 | ||||||
3,312 | CarMax, Inc. * | 381,509 | ||||||
3,672 | Genuine Parts Company | 481,473 | ||||||
94,896 | Kingfisher PLC | 484,778 | ||||||
7,776 | Kohl’s Corporation | 431,490 | ||||||
2,304 | Lowe’s Companies, Inc. | 448,888 | ||||||
205,488 | Marks & Spencer Group PLC * | 481,895 | ||||||
4,032 | Next PLC * | 466,375 | ||||||
864 | O’Reilly Automotive, Inc. * | 462,344 | ||||||
4,104 | Pandora A/S | 555,415 | ||||||
3,672 | Ross Stores, Inc. | 464,104 | ||||||
2,520 | Tractor Supply Co. | 457,884 | ||||||
5,521,256 | ||||||||
SEMICONDUCTORS - 4.0% | ||||||||
2,808 | Analog Devices, Inc. | 462,197 | ||||||
720 | ASML Holding N.V. | 484,405 | ||||||
936 | Broadcom, Inc. | 442,101 | ||||||
10,368 | Infineon Technologies A.G. | 419,498 | ||||||
1,440 | KLA Corporation | 456,322 | ||||||
792 | Lam Research Corporation | 514,681 | ||||||
4,752 | Maxim Integrated Products, Inc. | 484,752 | ||||||
2,880 | Microchip Technology, Inc. | 452,016 | ||||||
864 | NVIDIA Corporation | 561,410 | ||||||
2,232 | NXP Semiconductors N.V. | 471,889 | ||||||
11,520 | STMicroelectronics N.V. - ADR | 430,157 | ||||||
3,528 | Xilinx, Inc. | 448,056 | ||||||
5,627,484 | ||||||||
SOFTWARE - 3.2% | ||||||||
1,296 | ANSYS, Inc. * | 437,970 | ||||||
3,312 | Cadence Design Systems, Inc. * | 420,591 | ||||||
5,904 | Cerner Corporation | 461,988 | ||||||
See accompanying notes to financial statements.
26
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
SOFTWARE (continued) - 3.2% | ||||||||
1,296 | Palo Alto Networks, Inc. * | $ | 470,772 | |||||
864 | ServiceNow, Inc. * | 409,432 | ||||||
3,096 | Splunk, Inc. * | 375,235 | ||||||
1,800 | Synopsys, Inc. * | 457,812 | ||||||
51,264 | The Sage Group PLC | 477,248 | ||||||
69,750 | TOTVS SA | 449,216 | ||||||
1,656 | Veeva Systems, Inc. * | 482,459 | ||||||
4,442,723 | ||||||||
SPECIALTY FINANCE - 0.3% | ||||||||
11,316 | Housing Development Finance Corp | 396,976 | ||||||
2,977 | Isracard Ltd. * | 12,001 | ||||||
408,977 | ||||||||
STEEL - 0.9% | ||||||||
6,048 | Nucor Corporation | 620,162 | ||||||
44,505 | Tata Steel Ltd. | 677,934 | ||||||
1,298,096 | ||||||||
TECHNOLOGY HARDWARE - 1.0% | ||||||||
1,512 | Arista Networks, Inc. * | 513,143 | ||||||
6,120 | NetApp, Inc. | 473,504 | ||||||
31,824 | Telefonaktiebolaget LM Ericsson | 425,783 | ||||||
1,412,430 | ||||||||
TECHNOLOGY SERVICES - 3.5% | ||||||||
5,472 | Cognizant Technology Solutions Corporation | 391,576 | ||||||
504 | CoStar Group, Inc. * | 430,416 | ||||||
2,448 | Equifax, Inc. | 575,378 | ||||||
2,952 | Fidelity National Information Services, Inc. | 439,789 | ||||||
1,512 | FleetCor Technologies, Inc. * | 414,953 | ||||||
2,304 | Gartner, Inc. * | 534,159 | ||||||
23,598 | Infosys Ltd. | 457,692 | ||||||
4,320 | Paychex, Inc. | 436,925 | ||||||
9,798 | Tata Consultancy Services Ltd. | 425,179 | ||||||
17,424 | The Western Union Company | 426,365 | ||||||
2,376 | Verisk Analytics, Inc. | 410,644 | ||||||
4,943,076 | ||||||||
TELECOMMUNICATIONS - 0.3% | ||||||||
51,840 | Mobile TeleSystems PJSC - ADR | 472,781 | ||||||
TRANSPORTATION & LOGISTICS - 5.0% | ||||||||
3,528 | Aeroports de Paris * | 479,616 | ||||||
1,743,906 | AirAsia Group Bhd * | 354,392 | ||||||
131,544 | Babcock International Group PLC * | 557,851 | ||||||
4,464 | CH Robinson Worldwide, Inc. | 433,097 | ||||||
32,688 | easyJet PLC * | 466,480 | ||||||
4,104 | Expeditors International of Washington, Inc. | 515,832 | ||||||
7,128 | Fraport A.G. Frankfurt Airport Services Worldwide * | 496,145 | ||||||
24,696 | Grupo Aeroportuario del Sureste S.A.B. de C.V. * | 435,913 | ||||||
2,664 | JB Hunt Transport Services, Inc. | 456,983 | ||||||
See accompanying notes to financial statements.
27
Inspire Global Hope ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
TRANSPORTATION & LOGISTICS (continued) - 5.0% | ||||||||
1,656 | Kansas City Southern | $ | 492,958 | |||||
1,440 | Kuehne + Nagel International AG | 486,213 | ||||||
1,584 | Norfolk Southern Corp. | 444,946 | ||||||
60,984 | Royal Mail PLC * | 500,294 | ||||||
3,744 | Ryanair Holdings PLC - ADR * | 437,112 | ||||||
2,016 | Union Pacific Corp. | 453,056 | ||||||
7,010,888 | ||||||||
TRANSPORTATION EQUIPMENT - 0.6% | ||||||||
4,680 | PACCAR, Inc. | 428,501 | ||||||
15,456 | Volvo AB - Class A | 419,005 | ||||||
672 | Volvo AB - Class B | 17,697 | ||||||
865,203 | ||||||||
WHOLESALE - CONSUMER STAPLES - 0.3% | ||||||||
5,472 | Sysco Corp. | 443,232 | ||||||
WHOLESALE - DISCRETIONARY - 0.3% | ||||||||
13,320 | Bunzl PLC | 431,540 | ||||||
TOTAL COMMON STOCKS (Cost $103,108,163) | 137,719,490 | |||||||
STOCK WARRANTS - 0.0% | ||||||||
APPAREL & TEXTILE PRODUCTS - 0.0% | ||||||||
10,118 | Cie Financiere Richemont SA * | 6,520 | ||||||
OIL & GAS PRODUCERS - 0.0% | ||||||||
2,243 | Occidental Petroleum Corp. * ^ | 24,561 | ||||||
TOTAL STOCK WARRANTS (Cost $5,561) | 31,081 | |||||||
COLLATERAL FOR SECURITIES LOANED - 2.3% ^^ | ||||||||
MONEY MARKET FUND - 2.3% | ||||||||
3,270,309 | Fidelity Government Portfolio - Institutional Class, to yield 0.01% + | 3,270,309 | ||||||
TOTAL MONEY MARKET FUND (Cost $3,270,309) | ||||||||
TOTAL INVESTMENTS - 99.9% (Cost $106,384,033) | $ | 141,020,880 | ||||||
OTHER ASSETS LESS LIABILITIES - 0.1% | 123,965 | |||||||
NET ASSETS - 100.0% | $ | 141,144,845 | ||||||
^ | All or a portion of this security is on loan as of May 31, 2021. The total value of securities on loan as of May 31, 2021 is $3,174,083. |
^^ | This security was purchased with cash collateral held from securities on loan. The total value of such security as of May 31, 2021 is $3,270,309. |
* | Non-Income producing security. |
+ | Money market fund; interest rate reflects seven-day effective yield on May 31, 2021. |
PLC - Public Limited Company
See accompanying notes to financial statements.
28
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) |
May 31, 2021 |
Shares | Value | |||||||
COMMON STOCKS - 99.2% | ||||||||
AEROSPACE & DEFENSE - 0.9% | ||||||||
10,368 | AAR Corp. * | $ | 432,864 | |||||
2,496 | AeroVironment, Inc. * ^ | 273,636 | ||||||
18,816 | Triumph Group, Inc. | 361,644 | ||||||
1,068,144 | ||||||||
APPAREL & TEXTILE PRODUCTS - 0.9% | ||||||||
3,904 | Oxford Industries, Inc. | 373,808 | ||||||
8,576 | Steven Madden Ltd. | 355,047 | ||||||
8,640 | Wolverine World Wide, Inc. | 315,014 | ||||||
1,043,869 | ||||||||
ASSET MANAGEMENT - 1.8% | ||||||||
8,000 | Artisan Partners Asset Management, Inc. | 408,640 | ||||||
15,360 | Blucora, Inc. * | 266,342 | ||||||
23,936 | Boston Private Financial Holdings, Inc. | 366,939 | ||||||
17,344 | Federated Hermes, Inc. | 551,539 | ||||||
19,776 | Sculptor Capital Management, Inc. | 516,747 | ||||||
2,110,207 | ||||||||
AUTOMOTIVE - 1.2% | ||||||||
24,960 | American Axle & Manufacturing Holdings, Inc. * | 279,552 | ||||||
16,832 | Dana, Inc. | 456,652 | ||||||
5,760 | Gentherm, Inc. * | 417,773 | ||||||
2,368 | Visteon Corp. * ^ | 289,985 | ||||||
1,443,962 | ||||||||
BANKING - 10.2% | ||||||||
39,872 | Brookline Bancorp, Inc. | 672,242 | ||||||
34,240 | Capitol Federal Financial, Inc. | 443,066 | ||||||
7,424 | City Holding Company | 595,553 | ||||||
10,880 | Columbia Banking System, Inc. | 469,581 | ||||||
10,816 | Eagle Bancorp, Inc. | 618,026 | ||||||
28,096 | First Financial Bancorp | 715,605 | ||||||
14,592 | First Interstate BancSystem, Inc. | 686,845 | ||||||
28,928 | First Midwest Bancorp, Inc. | 605,463 | ||||||
7,872 | Flagstar Bancorp, Inc. | 360,538 | ||||||
12,672 | Hilltop Holdings, Inc. | 470,765 | ||||||
27,840 | Home BancShares, Inc. | 761,702 | ||||||
40,512 | Hope Bancorp, Inc. | 619,834 | ||||||
44,736 | Northwest Bancshares, Inc. | 633,462 | ||||||
38,784 | Old National Bancorp | 738,835 | ||||||
23,104 | Provident Financial Services, Inc. | 583,607 | ||||||
12,992 | S&T Bancorp, Inc. | 440,819 | ||||||
17,024 | Southside Bancshares, Inc. | 729,308 | ||||||
16,704 | United Bankshares, Inc. | 688,038 | ||||||
21,760 | United Community Banks, Inc. | 752,461 | ||||||
7,936 | Westamerica BanCorporation | 497,825 | ||||||
12,083,575 | ||||||||
BEVERAGES - 0.6% | ||||||||
1,664 | Coca-Cola Consolidated, Inc. | 673,787 | ||||||
See accompanying notes to financial statements.
29
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
BIOTECHNOLOGY & PHARMACEUTICAL - 3.1% | ||||||||
14,208 | Aerie Pharmaceuticals, Inc. * ^ | $ | 231,448 | |||||
43,392 | Amneal Pharmaceuticals, Inc. * | 245,599 | ||||||
4,160 | Enanta Pharmaceuticals, Inc. * ^ | 202,426 | ||||||
1,792 | Heska Corporation * | 355,085 | ||||||
33,408 | Innoviva, Inc. * | 449,338 | ||||||
4,928 | Intercept Pharmaceuticals, Inc.* | 81,953 | ||||||
28,352 | Ironwood Pharmaceuticals, Inc. * | 328,033 | ||||||
1,280 | Ligand Pharmaceuticals, Inc. * ^ | 150,656 | ||||||
3,840 | Pacira Biosciences, Inc.* | 232,973 | ||||||
3,904 | Sage Therapeutics, Inc. * | 271,718 | ||||||
12,032 | Supernus Pharmaceuticals, Inc.* | 359,155 | ||||||
9,280 | Theravance Biopharma, Inc.* | 160,358 | ||||||
1,792 | Ultragenyx Pharmaceutical Inc. * | 182,264 | ||||||
2,304 | United Therapeutics Corporation * | 428,314 | ||||||
3,679,320 | ||||||||
CHEMICALS - 3.9% | ||||||||
4,608 | Balchem Corporation | 603,648 | ||||||
15,360 | The Chemours Company | 551,885 | ||||||
12,352 | GCP Applied Technologies, Inc. * | 301,142 | ||||||
5,248 | Innospec, Inc. | 530,625 | ||||||
7,168 | Materion Corporation | 565,197 | ||||||
8,448 | Minerals Technologies, Inc. | 734,976 | ||||||
11,200 | Olin Corporation | 547,568 | ||||||
7,168 | Trinseo S.A. | 465,490 | ||||||
1,472 | WD-40 Company ^ | 360,346 | ||||||
4,660,877 | ||||||||
COMMERCIAL SUPPORT SERVICES - 3.5% | ||||||||
8,512 | ABM Industries, Inc. | 424,664 | ||||||
4,672 | AMN Healthcare Services, Inc. * | 414,406 | ||||||
7,872 | Brady Corporation | 450,515 | ||||||
22,912 | Covanta Holding Corporation | 339,327 | ||||||
8,384 | Deluxe Corporation | 381,975 | ||||||
14,016 | Harsco Corporation * ^ | 314,239 | ||||||
11,264 | Healthcare Services Group, Inc. | 337,807 | ||||||
4,096 | Insperity, Inc. | 377,610 | ||||||
7,552 | Korn Ferry | 493,976 | ||||||
8,064 | US Ecology, Inc. * ^ | 319,576 | ||||||
5,760 | Viad Corporation * ^ | 254,246 | ||||||
4,108,341 | ||||||||
CONSTRUCTION MATERIALS - 0.5% | ||||||||
16,320 | Summit Materials, Inc. * | 568,262 | ||||||
CONSUMER SERVICES - 0.7% | ||||||||
22,656 | Perdoceo Education Corporation * | 276,177 | ||||||
6,208 | Rent-A-Center, Inc. | 383,716 | ||||||
2,560 | Strategic Education, Inc. ^ | 181,350 | ||||||
841,243 | ||||||||
See accompanying notes to financial statements.
30
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
CONTAINERS & PACKAGING - 1.2% | ||||||||
10,240 | Greif, Inc. | $ | 631,910 | |||||
20,480 | Silgan Holdings, Inc. | 862,822 | ||||||
1,494,732 | ||||||||
ELECTRIC UTILITIES - 1.4% | ||||||||
5,888 | ALLETE, Inc. | 405,624 | ||||||
6,080 | MGE Energy, Inc. | 456,122 | ||||||
4,800 | NextEra Energy Partners, L.P. ^ | 328,176 | ||||||
7,040 | NorthWestern Corporation | 445,984 | ||||||
1,635,906 | ||||||||
ELECTRICAL EQUIPMENT - 0.9% | ||||||||
3,712 | Advanced Energy Industries, Inc. | 378,661 | ||||||
2,688 | Itron, Inc. * | 256,301 | ||||||
7,680 | SPX Corporation * | 480,998 | ||||||
1,115,960 | ||||||||
ENGINEERING & CONSTRUCTION - 1.6% | ||||||||
5,632 | Comfort Systems USA, Inc. | 466,893 | ||||||
4,352 | Dycom Industries, Inc. * | 326,052 | ||||||
4,992 | Exponent, Inc. | 455,420 | ||||||
2,432 | Installed Building Products, Inc. ^ | 288,435 | ||||||
1,856 | TopBuild Corporation * | 367,581 | ||||||
1,904,381 | ||||||||
ENTERTAINMENT CONTENT - 0.3% | ||||||||
6,976 | AMC Networks, Inc. * | 374,472 | ||||||
FOOD - 1.7% | ||||||||
16,320 | Fresh Del Monte Produce, Inc. | 546,230 | ||||||
3,200 | J & J Snack Foods Corporation | 561,856 | ||||||
6,336 | John B Sanfilippo & Son, Inc. | 591,212 | ||||||
9,792 | Phibro Animal Health Corporation ^ | 276,036 | ||||||
390 | Tootsie Roll Industries, Inc. ^ | 12,203 | ||||||
1,987,537 | ||||||||
FORESTRY, PAPER & WOOD PRODUCTS - 1.0% | ||||||||
9,536 | Boise Cascade Company | 629,281 | ||||||
7,488 | UFP Industries, Inc. | 595,446 | ||||||
1,224,727 | ||||||||
GAS & WATER UTILITIES - 1.2% | ||||||||
8,576 | National Fuel Gas Company | 445,009 | ||||||
5,440 | Northwest Natural Holding Company | 287,667 | ||||||
16,064 | South Jersey Industries, Inc. ^ | 428,266 | ||||||
21,248 | Suburban Propane Partners, L.P. | 312,346 | ||||||
1,473,288 | ||||||||
HEALTHCARE FACILITIES & SERVICES - 2.1% | ||||||||
5,760 | Acadia Healthcare Company, Inc. * | 370,714 | ||||||
52,544 | Brookdale Senior Living, Inc. * | 354,147 | ||||||
4,544 | The Ensign Group, Inc. | 378,061 | ||||||
5,120 | Magellan Health, Inc. * | 482,253 | ||||||
9,536 | MEDNAX, Inc. * | 304,961 | ||||||
6,208 | Tenet Healthcare Corporation * ^ | 415,377 | ||||||
See accompanying notes to financial statements.
31
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
HEALTHCARE FACILITIES & SERVICES (continued) - 2.1% | ||||||||
2,112 | US Physical Therapy, Inc. ^ | $ | 245,752 | |||||
2,551,265 | ||||||||
HOME & OFFICE PRODUCTS - 0.5% | ||||||||
8,448 | Herman Miller, Inc. | 403,814 | ||||||
6,400 | Tupperware Brands Corporation * | 164,096 | ||||||
567,910 | ||||||||
HOME CONSTRUCTION - 3.1% | ||||||||
1,344 | Cavco Industries, Inc. * | 297,387 | ||||||
18,304 | Forestar Group, Inc. * | 421,175 | ||||||
3,136 | LGI Homes, Inc. * | 567,020 | ||||||
8,832 | M/I Homes, Inc. * | 622,833 | ||||||
4,864 | Meritage Homes Corporation * | 523,707 | ||||||
3,776 | Patrick Industries, Inc. ^ | 323,603 | ||||||
14,848 | Taylor Morrison Home Corporation * | 439,798 | ||||||
18,624 | Tri Pointe Homes, Inc. * | 449,211 | ||||||
3,644,734 | ||||||||
HOUSEHOLD PRODUCTS - 1.4% | ||||||||
11,008 | Edgewell Personal Care Company ^ | 499,543 | ||||||
5,952 | Inter Parfums, Inc. | 455,209 | ||||||
7,552 | Nu Skin Enterprises, Inc. | 454,328 | ||||||
17,280 | Revlon, Inc. * ^ | 221,357 | ||||||
1,630,437 | ||||||||
INDUSTRIAL INTERMEDIATE PRODUCTS - 2.5% | ||||||||
2,432 | Chart Industries, Inc. * | 354,926 | ||||||
6,016 | EnPro Industries, Inc. | 553,412 | ||||||
4,096 | Gibraltar Industries, Inc. * | 325,427 | ||||||
13,760 | Mueller Industries, Inc. | 638,877 | ||||||
1,216 | Proto Labs, Inc. * | 108,698 | ||||||
9,088 | Raven Industries, Inc. | 401,053 | ||||||
2,368 | Valmont Industries, Inc. | 587,264 | ||||||
2,969,657 | ||||||||
INSTITUTIONAL FINANCIAL SERVICES - 0.6% | ||||||||
4,992 | Evercore, Inc. | 728,133 | ||||||
INSURANCE - 2.5% | ||||||||
15,616 | American Equity Investment Life Holding | 476,288 | ||||||
7,040 | AMERISAFE, Inc. | 461,331 | ||||||
3,584 | eHealth, Inc. * | 233,856 | ||||||
11,200 | Employers Holdings, Inc. | 472,640 | ||||||
54,400 | Genworth Financial, Inc. * | 228,480 | ||||||
8,704 | Mercury General Corporation ^ | 553,574 | ||||||
12,032 | ProAssurance Corporation ^ | 292,979 | ||||||
8,896 | United Fire Group, Inc. ^ | 272,662 | ||||||
2,991,810 | ||||||||
LEISURE FACILITIES & SERVICES - 1.7% | ||||||||
14,464 | Cinemark Holdings, Inc. * | 327,754 | ||||||
3,712 | Dine Brands Global, Inc. * | 352,454 | ||||||
3,904 | Papa John’s International, Inc. ^ | 366,781 | ||||||
See accompanying notes to financial statements.
32
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
LEISURE FACILITIES & SERVICES (continued) - 1.7% | ||||||||
7,680 | SeaWorld Entertainment, Inc. * | $ | 418,022 | |||||
2,496 | Shake Shack, Inc. * ^ | 234,574 | ||||||
6,784 | The St. Joe Company ^ | 317,288 | ||||||
2,016,873 | ||||||||
LEISURE PRODUCTS - 1.3% | ||||||||
14,400 | Callaway Golf Company | 531,648 | ||||||
2,944 | Fox Factory Holding Corporation * | 457,733 | ||||||
2,240 | Thor Industries, Inc. ^ | 275,520 | ||||||
4,032 | Winnebago Industries, Inc. | 298,207 | ||||||
1,563,108 | ||||||||
MACHINERY - 3.1% | ||||||||
3,328 | Alamo Group, Inc. | 513,111 | ||||||
6,144 | Astec Industries, Inc. | 421,048 | ||||||
3,392 | Curtiss-Wright Corporation | 425,085 | ||||||
15,680 | Enerpac Tool Group Corporation | 429,632 | ||||||
5,184 | ESCO Technologies, Inc. | 490,614 | ||||||
2,432 | John Bean Technologies Corporation | 350,281 | ||||||
3,904 | Regal Beloit Corporation | 555,266 | ||||||
5,952 | Tennant Company | 492,468 | ||||||
3,677,505 | ||||||||
MEDICAL EQUIPMENT & DEVICES - 2.7% | ||||||||
5,312 | Avanos Medical, Inc. * | 213,011 | ||||||
12,608 | CryoLife, Inc. * | 363,236 | ||||||
5,696 | Inogen, Inc. * | 352,070 | ||||||
3,648 | Integer Holdings Corporation * | 330,035 | ||||||
12,032 | Lantheus Holdings, Inc. * | 291,776 | ||||||
9,984 | Luminex Corporation | 368,310 | ||||||
7,936 | Myriad Genetics, Inc. * | 227,366 | ||||||
9,728 | Natus Medical, Inc. * ^ | 260,710 | ||||||
3,840 | Neogen Corporation * | 354,470 | ||||||
15,552 | OraSure Technologies, Inc. * ^ | 149,455 | ||||||
12,416 | Varex Imaging Corporation * | 311,517 | ||||||
3,221,956 | ||||||||
METALS & MINING - 1.4% | ||||||||
35,392 | Alliance Resource Partners, L.P. | 210,936 | ||||||
34,752 | Coeur Mining, Inc. * | 361,421 | ||||||
7,360 | Encore Wire Corporation | 604,992 | ||||||
53,888 | Hecla Mining Company | 484,992 | ||||||
1,662,341 | ||||||||
OIL & GAS PRODUCERS - 3.2% | ||||||||
12,864 | Callon Petroleum Company * ^ | 494,878 | ||||||
12,736 | Crestwood Equity Partners, L.P. | 365,014 | ||||||
11,008 | CVR Energy, Inc. | 228,416 | ||||||
57,728 | Enerplus Corporation | 378,118 | ||||||
53,056 | EnLink Midstream, LLC | 258,913 | ||||||
9,088 | Holly Energy Partners, L.P. | 193,302 | ||||||
70,592 | Kosmos Energy Ltd. * | 224,483 | ||||||
9,408 | PDC Energy, Inc. * | 397,206 | ||||||
See accompanying notes to financial statements.
33
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
OIL & GAS PRODUCERS (continued) - 3.2% | ||||||||
17,664 | SM Energy Company | $ | 351,514 | |||||
49,536 | Southwestern Energy Company * | 256,101 | ||||||
9,536 | Sunoco, L.P. | 334,141 | ||||||
9,792 | World Fuel Services Corporation | 300,908 | ||||||
3,782,994 | ||||||||
OIL & GAS SERVICES & EQUIPMENT - 1.8% | ||||||||
30,272 | Archrock, Inc. | 278,502 | ||||||
6,976 | Dril-Quip, Inc. * | 233,905 | ||||||
48,768 | Helix Energy Solutions Group, Inc. * ^ | 255,057 | ||||||
2,432 | Nabors Industries Ltd. * ^ | 227,684 | ||||||
23,872 | NOW, Inc. * | 249,940 | ||||||
25,344 | Oceaneering International, Inc. * | 361,659 | ||||||
35,648 | Oil States International, Inc. * ^ | 229,217 | ||||||
39,808 | Patterson-UTI Energy, Inc. | 333,193 | ||||||
2,169,157 | ||||||||
PUBLISHING & BROADCASTING - 0.8% | ||||||||
202,880 | Clear Channel Outdoor Holdings, Inc. * | 484,883 | ||||||
6,912 | John Wiley & Sons, Inc. ^ | 438,083 | ||||||
922,966 | ||||||||
REAL ESTATE INVESTMENT TRUSTS - 7.9% | ||||||||
19,264 | Acadia Realty Trust | 418,029 | ||||||
6,784 | Agree Realty Corporation | 476,780 | ||||||
32,704 | Brandywine Realty Trust | 459,818 | ||||||
17,280 | CareTrust REIT, Inc. | 402,278 | ||||||
22,528 | Columbia Property Trust, Inc. | 394,015 | ||||||
34,624 | CoreCivic, Inc. * | 271,106 | ||||||
36,544 | DiamondRock Hospitality Company * | 353,746 | ||||||
48,512 | Diversified Healthcare Trust | 176,099 | ||||||
27,712 | The GEO Group, Inc. ^ | 143,825 | ||||||
29,824 | Independence Realty Trust, Inc. | 509,394 | ||||||
18,432 | Kite Realty Group Trust | 390,758 | ||||||
21,184 | Mack-Cali Realty Corporation | 361,611 | ||||||
13,568 | Office Properties Income Trust | 396,593 | ||||||
10,752 | Outfront Media, Inc. * | 257,403 | ||||||
23,680 | Piedmont Office Realty Trust, Inc. | 437,843 | ||||||
9,152 | PotlatchDeltic Corporation | 550,950 | ||||||
5,568 | QTS Realty Trust, Inc. | 352,900 | ||||||
22,912 | RLJ Lodging Trust | 352,157 | ||||||
32,064 | RPT Realty | 408,816 | ||||||
9,472 | Saul Centers, Inc. | 421,030 | ||||||
19,264 | Service Properties Trust | 241,956 | ||||||
31,424 | Summit Hotel Properties, Inc. * | 301,985 | ||||||
18,752 | Tanger Factory Outlet Centers, Inc. ^ | 328,723 | ||||||
17,792 | Uniti Group, Inc. | 193,221 | ||||||
21,760 | Urban Edge Properties | 421,056 | ||||||
18,240 | Xenia Hotels & Resorts, Inc. * | 354,038 | ||||||
9,376,130 | ||||||||
See accompanying notes to financial statements.
34
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
RETAIL - CONSUMER STAPLES - 1.2% | ||||||||
4,224 | Big Lots, Inc. | $ | 257,411 | |||||
2,816 | Ollie’s Bargain Outlet Holdings, Inc. * ^ | 243,415 | ||||||
17,664 | Sprouts Farmers Market, Inc. * | 469,862 | ||||||
8,768 | Weis Markets, Inc. ^ | 446,116 | ||||||
1,416,804 | ||||||||
RETAIL - DISCRETIONARY - 4.6% | ||||||||
13,632 | The Aaron’s Company, Inc. | 490,343 | ||||||
5,632 | Avis Budget Group, Inc. * ^ | 494,602 | ||||||
8,512 | Builders FirstSource, Inc. * | 379,125 | ||||||
2,752 | The Children’s Place, Inc. * | 255,909 | ||||||
18,880 | Designer Brands, Inc. * ^ | 330,211 | ||||||
2,816 | Dillard’s, Inc. ^ | 371,459 | ||||||
1,984 | Group 1 Automotive, Inc. ^ | 316,408 | ||||||
11,072 | Guess?, Inc. | 325,185 | ||||||
6,976 | La-Z-Boy, Inc. ^ | 287,620 | ||||||
896 | Lithia Motors, Inc. | 315,383 | ||||||
4,672 | Monro, Inc. ^ | 291,253 | ||||||
576 | RH * ^ | 369,245 | ||||||
16,320 | Sally Beauty Holdings, Inc. * | 355,939 | ||||||
2,048 | Sleep Number Corporation * | 228,332 | ||||||
5,504 | Sonic Automotive, Inc. | 265,458 | ||||||
8,000 | Urban Outfitters, Inc. * | 313,280 | ||||||
5,389,752 | ||||||||
SEMICONDUCTORS - 4.0% | ||||||||
17,152 | Amkor Technology, Inc. | 361,907 | ||||||
4,672 | Brooks Automation, Inc. | 476,965 | ||||||
4,160 | Cirrus Logic, Inc. * | 324,771 | ||||||
6,720 | Cohu, Inc. * | 250,118 | ||||||
11,200 | CTS Corp. | 428,400 | ||||||
7,616 | Kulicke & Soffa Industries, Inc. | 395,270 | ||||||
9,344 | MaxLinear, Inc. * | 355,259 | ||||||
4,928 | Power Integrations, Inc. ^ | 405,032 | ||||||
20,480 | Rambus, Inc. * | 400,589 | ||||||
5,376 | Semtech Corporation * | 338,688 | ||||||
3,520 | Silicon Motion Technology Corporation ^ | 232,214 | ||||||
2,560 | Synaptics, Inc. * | 323,405 | ||||||
18,112 | Vishay Intertechnology, Inc. ^ | 435,956 | ||||||
4,728,574 | ||||||||
SOFTWARE - 3.0% | ||||||||
22,400 | Allscripts Healthcare Solutions, Inc. * ^ | 389,536 | ||||||
5,312 | Blackbaud, Inc. * | 375,505 | ||||||
6,912 | Bottomline Technologies DE, Inc. * | 258,371 | ||||||
2,944 | Concentrix Corporation * | 449,608 | ||||||
5,376 | Envestnet, Inc. * | 386,911 | ||||||
12,096 | FireEye, Inc. * ^ | 270,588 | ||||||
384 | MicroStrategy, Inc. * ^ | 180,480 | ||||||
2,944 | Omnicell, Inc. * | 409,216 | ||||||
See accompanying notes to financial statements.
35
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
SOFTWARE (continued) - 3.0% | ||||||||
3,264 | Qualys, Inc. * ^ | $ | 315,563 | |||||
10,048 | Verint Systems, Inc. * | 463,313 | ||||||
3,499,091 | ||||||||
SPECIALTY FINANCE - 2.5% | ||||||||
20,480 | Apollo Commercial Real Estate Finance, Inc. | 320,512 | ||||||
7,936 | Encore Capital Group, Inc. * ^ | 367,357 | ||||||
51,968 | Invesco Mortgage Capital, Inc. | 176,691 | ||||||
704 | LendingTree, Inc. * ^ | 144,496 | ||||||
10,176 | Mr. Cooper Group, Inc.* | 351,988 | ||||||
6,016 | Nelnet, Inc. | 454,328 | ||||||
8,576 | PRA Group, Inc. * ^ | 333,864 | ||||||
7,424 | Stewart Information Services Corporation | 448,038 | ||||||
3,264 | Walker & Dunlop, Inc. | 331,427 | ||||||
2,928,701 | ||||||||
STEEL - 2.1% | ||||||||
17,472 | Allegheny Technologies, Inc. * ^ | 427,889 | ||||||
9,728 | Carpenter Technology Corporation ^ | 466,166 | ||||||
17,664 | Commercial Metals Company | 555,886 | ||||||
19,584 | United States Steel Corporation ^ | 507,813 | ||||||
8,256 | Worthington Industries, Inc. | 547,951 | ||||||
2,505,705 | ||||||||
TECHNOLOGY HARDWARE - 3.0% | ||||||||
4,608 | 3D Systems Corp. * | 135,521 | ||||||
12,928 | Benchmark Electronics, Inc. ^ | 400,122 | ||||||
6,336 | Plantronics, Inc. * ^ | 207,821 | ||||||
11,136 | Sanmina Corporation * ^ | 468,937 | ||||||
10,176 | Super Micro Computer, Inc. * | 353,514 | ||||||
4,352 | SYNNEX Corporation | 550,963 | ||||||
32,896 | TTM Technologies, Inc. * | 498,374 | ||||||
30,208 | Viavi Solutions, Inc. * | 529,546 | ||||||
4,096 | Vicor Corporation * ^ | 368,968 | ||||||
3,513,766 | ||||||||
TECHNOLOGY SERVICES - 2.3% | ||||||||
5,888 | Cardtronics PLC * ^ | 229,220 | ||||||
5,184 | CoreLogic, Inc. | 412,128 | ||||||
5,056 | ExlService Holdings, Inc. * | 515,611 | ||||||
4,864 | Green Dot Corporation * | 197,430 | ||||||
4,608 | ManTech International Corporation | 400,942 | ||||||
23,040 | Sabre Corporation * ^ | 319,104 | ||||||
5,504 | TTEC Holdings, Inc. | 596,689 | ||||||
2,671,124 | ||||||||
TELECOMMUNICATIONS - 0.9% | ||||||||
4,352 | Cogent Communications Holdings, Inc. | 329,011 | ||||||
9,920 | Iridium Communications, Inc. * | 379,043 | ||||||
24,768 | Vonage Holdings Corporation * | 341,303 | ||||||
1,049,357 | ||||||||
TRANSPORTATION & LOGISTICS - 2.1% | ||||||||
1,984 | Allegiant Travel Company * | 439,377 | ||||||
See accompanying notes to financial statements.
36
Inspire Small/Mid Cap Impact ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
TRANSPORTATION & LOGISTICS (continued) - 2.1% | ||||||||
22,656 | Heartland Express, Inc. | $ | 411,206 | |||||
6,912 | Hub Group, Inc. * | 482,527 | ||||||
5,056 | Kirby Corporation * | 330,309 | ||||||
1,728 | Saia, Inc. * | 397,717 | ||||||
9,728 | Werner Enterprises, Inc. | 466,847 | ||||||
2,527,983 | ||||||||
TRANSPORTATION EQUIPMENT - 0.3% | ||||||||
11,584 | Trinity Industries, Inc. | 321,804 | ||||||
TOTAL COMMON STOCKS (Cost $94,950,850) | 117,522,227 | |||||||
COLLATERAL FOR SECURITIES LOANED - 11.4% ^^ | ||||||||
MONEY MARKET FUND - 11.4% | ||||||||
13,564,191 | Fidelity Government Portfolio - Institutional Class, to yield 0.01% + | 13,564,191 | ||||||
TOTAL MONEY MARKET FUND (Cost $13,564,191) | ||||||||
TOTAL INVESTMENTS - 110.6% (Cost $108,515,041) | $ | 131,086,418 | ||||||
LIABILITIES IN EXCESS OF OTHER ASSETS - (10.6)% | (12,551,918 | ) | ||||||
NET ASSETS - 100.0% | $ | 118,534,500 | ||||||
^ | All or a portion of this security is on loan as of May 31, 2021. The total value of securities on loan as of May 31, 2021 is $13,281,883. |
^^ | This security was purchased with cash collateral held from securities on loan. The total value of such security as of May 31, 2021 is $13,564,191. |
* | Non-Income producing security. |
+ | Money market fund; interest rate reflects seven-day effective yield on May 31, 2021. |
ADR - American Depositary Receipt
LP - Limited Partnership
PLC - Public Limited Company
REIT - Real Estate Investment Trust
See accompanying notes to financial statements.
37
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) |
May 31, 2021 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||||||
CORPORATE BONDS - 97.7% | ||||||||||||||||
ASSET MANAGEMENT - 2.3% | ||||||||||||||||
2,000,000 | The Charles Schwab Corporation | 3.200 | 1/25/2028 | $ | 2,184,177 | |||||||||||
2,000,000 | The Charles Schwab Corporation | 3.250 | 5/22/2029 | 2,185,053 | ||||||||||||
4,369,230 | ||||||||||||||||
AUTOMOTIVE - 0.8% | ||||||||||||||||
1,357,000 | Aptiv PLC | 4.250 | 1/15/2026 | 1,535,625 | ||||||||||||
BANKING - 2.6% | ||||||||||||||||
1,426,000 | People’s United Financial, Inc. | 3.650 | 12/6/2022 | 1,482,397 | ||||||||||||
1,000,000 | Westpac Banking Corporation | 3.350 | 3/8/2027 | 1,109,394 | ||||||||||||
1,984,000 | Westpac Banking Corporation | 3.400 | 1/25/2028 | 2,208,617 | ||||||||||||
4,800,408 | ||||||||||||||||
BIOTECHNOLOGY & PHARMACEUTICAL - 0.8% | ||||||||||||||||
1,357,000 | Zoetis, Inc. | 3.900 | 8/20/2028 | 1,533,507 | ||||||||||||
CHEMICALS - 2.5% | ||||||||||||||||
1,684,000 | Air Liquide Finance SA | 2.250 | 9/10/2029 | 1,723,229 | ||||||||||||
1,610,000 | LyondellBasell Industries NV | 5.750 | 4/15/2024 | 1,816,707 | ||||||||||||
1,000,000 | Nutrien Ltd. | 4.000 | 12/15/2026 | 1,128,336 | ||||||||||||
4,668,272 | ||||||||||||||||
COMMERCIAL SUPPORT SERVICES - 3.6% | ||||||||||||||||
1,610,000 | Block Financial LLC | 5.500 | 11/1/2022 | 1,680,253 | ||||||||||||
1,357,000 | Cintas Corp. No. 2 | 3.700 | 4/1/2027 | 1,526,560 | ||||||||||||
1,521,000 | Republic Services, Inc. | 2.900 | 7/1/2026 | 1,638,616 | ||||||||||||
1,780,000 | Waste Connections, Inc. | 3.500 | 5/1/2029 | 1,942,082 | ||||||||||||
6,787,511 | ||||||||||||||||
CONTAINERS & PACKAGING - 0.6% | ||||||||||||||||
962,000 | International Paper Company | 3.000 | 2/15/2027 | 1,051,910 | ||||||||||||
DIVERSIFIED INDUSTRIALS - 1.9% | ||||||||||||||||
1,692,000 | Honeywell International, Inc. | 2.500 | 11/1/2026 | 1,810,330 | ||||||||||||
1,657,000 | Illinois Tool Works, Inc. | 2.650 | 11/15/2026 | 1,788,714 | ||||||||||||
3,599,044 | ||||||||||||||||
ELECTRIC & GAS MARKETING & TRADING - 0.7% | ||||||||||||||||
1,233,000 | Consolidated Edison Company of New York, Inc. | 4.000 | 12/1/2028 | 1,399,285 | ||||||||||||
�� | ||||||||||||||||
ELECTRIC UTILITIES - 4.4% | ||||||||||||||||
1,610,000 | CenterPoint Energy, Inc. | 2.500 | 9/1/2022 | 1,648,627 | ||||||||||||
1,610,000 | Entergy Corporation | 2.950 | 9/1/2026 | 1,723,935 | ||||||||||||
1,937,000 | PPL Capital Funding, Inc. | 4.200 | 6/15/2022 | 1,992,710 | ||||||||||||
1,587,000 | PPL Capital Funding, Inc. | 3.500 | 12/1/2022 | 1,648,406 | ||||||||||||
1,090,000 | WEC Energy Group, Inc. | 3.550 | 6/15/2025 | 1,192,992 | ||||||||||||
8,206,670 | ||||||||||||||||
ELECTRICAL EQUIPMENT - 4.1% | ||||||||||||||||
1,872,000 | Amphenol Corporation | 4.350 | 6/1/2029 | 2,166,734 | ||||||||||||
1,372,000 | Amphenol Corporation | 2.800 | 2/15/2030 | 1,423,087 | ||||||||||||
1,395,000 | Roper Technologies, Inc. | 3.800 | 12/15/2026 | 1,562,101 | ||||||||||||
2,405,000 | Roper Technologies, Inc. | 2.950 | 9/15/2029 | 2,533,278 | ||||||||||||
7,685,200 | ||||||||||||||||
FOOD - 2.5% | ||||||||||||||||
1,161,000 | Conagra Brands, Inc. | 4.850 | 11/1/2028 | 1,370,740 | ||||||||||||
1,744,000 | Mead Johnson Nutrition Company | 4.125 | 11/15/2025 | 1,973,465 | ||||||||||||
1,287,000 | The J M Smucker Company | 3.500 | 3/15/2025 | 1,407,377 | ||||||||||||
4,751,582 |
See accompanying notes to financial statements.
38
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS (Unaudited)(Continued) |
May 31, 2021 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||||||
GAS & WATER UTILITIES - 1.0% | ||||||||||||||||
1,723,000 | NiSource, Inc. | 3.490 | 5/15/2027 | $ | 1,901,297 | |||||||||||
HEALTHCARE FACILITIES & SERVICES - 1.6% | ||||||||||||||||
1,267,000 | AmerisourceBergen Corporation | 3.400 | 5/15/2024 | 1,362,393 | ||||||||||||
1,607,000 | AmerisourceBergen Corporation | 3.250 | 3/1/2025 | 1,732,613 | ||||||||||||
3,095,006 | ||||||||||||||||
INSTITUTIONAL FINANCIAL SERVICES - 2.1% | ||||||||||||||||
2,000,000 | Brookfield Finance, Inc. | 4.850 | 3/29/2029 | 2,327,977 | ||||||||||||
1,357,000 | Cboe Global Markets, Inc. | 3.650 | 1/12/2027 | 1,521,462 | ||||||||||||
3,849,439 | ||||||||||||||||
INSURANCE - 2.7% | ||||||||||||||||
2,857,000 | Globe Life, Inc. | 4.550 | 9/15/2028 | 3,319,941 | ||||||||||||
1,610,000 | Old Republic International Corporation | 3.875 | 8/26/2026 | 1,801,728 | ||||||||||||
5,121,669 | ||||||||||||||||
MACHINERY - 2.1% | ||||||||||||||||
1,267,000 | Parker-Hannifin Corporation | 3.300 | 11/21/2024 | 1,368,099 | ||||||||||||
2,368,000 | Parker-Hannifin Corporation | 3.250 | 6/14/2029 | 2,561,540 | ||||||||||||
3,929,639 | ||||||||||||||||
OIL & GAS PRODUCERS - 13.3% | ||||||||||||||||
1,587,000 | EOG Resources, Inc. | 2.625 | 3/15/2023 | 1,643,241 | ||||||||||||
884,000 | EOG Resources, Inc. | 4.150 | 1/15/2026 | 998,539 | ||||||||||||
1,391,000 | Kinder Morgan Energy Partners LP | 3.950 | 9/1/2022 | 1,441,384 | ||||||||||||
1,267,000 | Marathon Petroleum Corporation | 3.625 | 9/15/2024 | 1,371,907 | ||||||||||||
943,000 | Noble Energy, Inc. | 3.900 | 11/15/2024 | 1,043,446 | ||||||||||||
1,000,000 | Occidental Petroleum Corporation | 3.000 | 2/15/2027 | 947,350 | ||||||||||||
3,000,000 | Occidental Petroleum Corporation | 4.200 | 3/15/2048 | 2,467,560 | ||||||||||||
1,357,000 | ONEOK, Inc. | 4.350 | 3/15/2029 | 1,516,081 | ||||||||||||
1,267,000 | ONEOK Partners LP | 4.900 | 3/15/2025 | 1,419,573 | ||||||||||||
1,438,000 | The Williams Companies, Inc. | 3.350 | 8/15/2022 | 1,478,898 | ||||||||||||
1,607,000 | The Williams Companies, Inc. | 3.900 | 1/15/2025 | 1,763,943 | ||||||||||||
1,586,000 | The Williams Companies, Inc. | 4.300 | 3/4/2024 | 1,735,278 | ||||||||||||
2,077,000 | Total Capital International SA | 2.829 | 1/10/2030 | 2,198,407 | ||||||||||||
2,003,000 | Total Capital International SA | 3.455 | 2/19/2029 | 2,208,248 | ||||||||||||
1,234,000 | Total Capital SA | 3.883 | 10/11/2028 | 1,399,835 | ||||||||||||
1,357,000 | Valero Energy Corporation | 3.400 | 9/15/2026 | 1,464,675 | ||||||||||||
25,098,365 | ||||||||||||||||
OIL & GAS SERVICES & EQUIPMENT - 4.6% | ||||||||||||||||
1,671,000 | Baker Hughes a GE Co. LLC | 2.773 | 12/15/2022 | 1,732,877 | ||||||||||||
1,610,000 | Baker Hughes a GE Co. LLC | 3.337 | 12/15/2027 | 1,767,172 | ||||||||||||
1,367,000 | Halliburton Company | 3.800 | 11/15/2025 | 1,516,306 | ||||||||||||
1,610,000 | National Oilwell Varco, Inc. | 3.600 | 12/1/2029 | 1,679,180 | ||||||||||||
2,000,000 | Patterson-UTI Energy, Inc. | 3.950 | 2/1/2028 | 1,989,183 | ||||||||||||
8,684,718 | ||||||||||||||||
REAL ESTATE INVESTMENT TRUSTS - 20.0% | ||||||||||||||||
1,242,000 | American Homes 4 Rent LP | 4.900 | 2/15/2029 | 1,434,920 | ||||||||||||
1,417,000 | American Tower Corporation | 3.125 | 1/15/2027 | 1,520,598 | ||||||||||||
1,587,000 | AvalonBay Communities, Inc. | 2.950 | 9/15/2022 | 1,633,531 | ||||||||||||
1,610,000 | AvalonBay Communities, Inc. | 3.200 | 1/15/2028 | 1,733,738 | ||||||||||||
1,357,000 | Boston Properties LP | 3.850 | 2/1/2023 | 1,421,732 | ||||||||||||
1,357,000 | Boston Properties LP | 2.750 | 10/1/2026 | 1,454,225 | ||||||||||||
1,542,000 | CC Holdings GS V LLC | 3.849 | 4/15/2023 | 1,639,047 | ||||||||||||
1,000,000 | Digital Realty Trust LP | 4.450 | 7/15/2028 | 1,149,562 | ||||||||||||
1,587,000 | ERP Operating LP | 3.000 | 4/15/2023 | 1,657,281 | ||||||||||||
1,587,000 | Kimco Realty Corporation | 3.400 | 11/1/2022 | 1,646,242 |
See accompanying notes to financial statements.
39
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS (Unaudited)(Continued) |
May 31, 2021 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||||||
REAL ESTATE INVESTMENT TRUSTS (continued) - 20.0% | ||||||||||||||||
1,357,000 | Kimco Realty Corp. | 2.700 | 3/1/2024 | $ | 1,429,219 | |||||||||||
1,357,000 | Prologis LP | 3.875 | 9/15/2028 | 1,541,861 | ||||||||||||
2,812,000 | Prologis LP | 2.250 | 4/15/2030 | 2,826,950 | ||||||||||||
1,357,000 | Realty Income Corporation | 4.125 | 10/15/2026 | 1,537,368 | ||||||||||||
1,309,000 | Realty Income Corporation | 3.000 | 1/15/2027 | 1,411,365 | ||||||||||||
1,357,000 | Realty Income Corporation | 3.650 | 1/15/2028 | 1,491,629 | ||||||||||||
1,610,000 | Simon Property Group LP | 2.750 | 2/1/2023 | 1,667,763 | ||||||||||||
1,657,000 | Simon Property Group LP | 3.250 | 11/30/2026 | 1,809,021 | ||||||||||||
1,357,000 | Simon Property Group LP | 3.750 | 2/1/2024 | 1,462,311 | ||||||||||||
1,242,000 | Ventas Realty LP | 3.750 | 5/1/2024 | 1,340,563 | ||||||||||||
1,357,000 | Ventas Realty LP | 3.500 | 2/1/2025 | 1,472,276 | ||||||||||||
1,357,000 | Ventas Realty LP | 3.250 | 10/15/2026 | 1,478,334 | ||||||||||||
1,242,000 | Welltower, Inc. | 4.500 | 1/15/2024 | 1,353,366 | ||||||||||||
1,372,000 | Welltower, Inc. | 4.000 | 6/1/2025 | 1,520,005 | ||||||||||||
37,632,907 | ||||||||||||||||
RETAIL - CONSUMER STAPLES - 3.4% | ||||||||||||||||
1,511,000 | Costco Wholesale Corp. | 2.300 | 5/18/2022 | 1,539,797 | ||||||||||||
1,607,000 | Costco Wholesale Corp. | 2.750 | 5/18/2024 | 1,714,351 | ||||||||||||
1,379,000 | Costco Wholesale Corp. | 3.000 | 5/18/2027 | 1,515,476 | ||||||||||||
1,372,000 | Dollar Tree, Inc. | 4.200 | 5/15/2028 | 1,553,476 | ||||||||||||
6,323,100 | ||||||||||||||||
RETAIL - DISCRETIONARY - 6.0% | ||||||||||||||||
1,767,000 | AutoZone, Inc. | 3.125 | 7/15/2023 | 1,856,082 | ||||||||||||
1,317,000 | AutoZone, Inc. | 3.125 | 4/21/2026 | 1,437,549 | ||||||||||||
1,357,000 | AutoZone, Inc. | 3.750 | 6/1/2027 | 1,509,952 | ||||||||||||
1,610,000 | Lowe’s Companies, Inc. | 3.120 | 4/15/2022 | 1,639,435 | ||||||||||||
1,357,000 | Lowe’s Companies, Inc. | 3.125 | 9/15/2024 | 1,462,563 | ||||||||||||
1,337,000 | Lowe’s Companies, Inc. | 2.500 | 4/15/2026 | 1,420,822 | ||||||||||||
1,818,000 | Lowe’s Companies, Inc. | 3.100 | 5/3/2027 | 1,980,237 | ||||||||||||
11,306,640 | ||||||||||||||||
SEMICONDUCTORS - 4.5% | ||||||||||||||||
1,357,000 | Analog Devices, Inc. | 3.900 | 12/15/2025 | 1,515,945 | ||||||||||||
1,607,000 | Broadcom, Inc. | 3.875 | 1/15/2027 | 1,767,494 | ||||||||||||
1,357,000 | Lam Research Corporation | 3.800 | 3/15/2025 | 1,502,001 | ||||||||||||
1,731,000 | Lam Research Corporation | 4.000 | 3/15/2029 | 1,981,401 | ||||||||||||
1,518,000 | Marvell Technology Group Ltd. | 4.875 | 6/22/2028 | 1,736,346 | ||||||||||||
8,503,187 | ||||||||||||||||
TRANSPORTATION & LOGISTICS - 6.1% | ||||||||||||||||
1,787,000 | Norfolk Southern Corp. | 3.000 | 4/1/2022 | 1,815,762 | ||||||||||||
1,393,000 | Norfolk Southern Corp. | 3.850 | 1/15/2024 | 1,502,875 | ||||||||||||
1,537,000 | Norfolk Southern Corp. | 2.900 | 6/15/2026 | 1,661,719 | ||||||||||||
1,357,000 | Union Pacific Corp. | 3.646 | 2/15/2024 | 1,465,406 | ||||||||||||
1,556,000 | Union Pacific Corp. | 3.750 | 3/15/2024 | 1,687,776 | ||||||||||||
1,357,000 | Union Pacific Corp. | 3.000 | 4/15/2027 | 1,473,169 | ||||||||||||
1,607,000 | Union Pacific Corp. | 3.950 | 9/10/2028 | 1,830,591 | ||||||||||||
11,437,298 |
See accompanying notes to financial statements.
40
Inspire Corporate Bond Impact ETF |
PORTFOLIO OF INVESTMENTS (Unaudited)(Continued) |
May 31, 2021 |
Principal Amount ($) | Coupon Rate (%) | Maturity | Value | |||||||||||||
WHOLESALE - CONSUMER STAPLES - 3.5% | ||||||||||||||||
1,607,000 | Sysco Corp. | 2.600 | 6/12/2022 | $ | 1,643,639 | |||||||||||
1,492,000 | Sysco Corp. | 3.750 | 10/1/2025 | 1,649,400 | ||||||||||||
1,582,000 | Sysco Corp. | 3.300 | 7/15/2026 | 1,729,316 | ||||||||||||
1,457,000 | Sysco Corp. | 3.250 | 7/15/2027 | 1,586,675 | ||||||||||||
6,609,030 | ||||||||||||||||
TOTAL CORPORATE BONDS (Cost $182,948,874) | 183,880,539 | |||||||||||||||
TOTAL INVESTMENTS - 97.7% (Cost - $182,948,874) | $ | 183,880,539 | ||||||||||||||
OTHER ASSETS LESS LIABILITIES - 2.3% | 4,308,599 | |||||||||||||||
NET ASSETS - 100.0% | $ | 188,189,138 |
LLC - Limited Liability Company
LP - Limited Partnership
PLC - Public Limited Company
See accompanying notes to financial statements.
41
Inspire 100 ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) |
May 31, 2021 |
Shares | Value | |||||||
COMMON STOCKS - 99.5% | ||||||||
AUTOMOTIVE - 0.9% | ||||||||
14,252 | Aptiv PLC * | $ | 2,143,786 | |||||
BANKING - 1.1% | ||||||||
51,061 | Regions Financial Corporation | 1,195,338 | ||||||
2,509 | SVB Financial Group * | 1,462,471 | ||||||
2,657,809 | ||||||||
BIOTECHNOLOGY & PHARMACEUTICAL - 4.8% | ||||||||
10,944 | Alexion Pharmaceuticals, Inc. * | 1,932,163 | ||||||
5,133 | Regeneron Pharmaceuticals, Inc. * | 2,578,973 | ||||||
12,429 | Vertex Pharmaceuticals, Inc. * | 2,593,062 | ||||||
24,398 | Zoetis, Inc. | 4,310,639 | ||||||
11,414,837 | ||||||||
CHEMICALS - 0.5% | ||||||||
8,664 | International Flavors & Fragrances, Inc. | 1,227,429 | ||||||
COMMERCIAL SUPPORT SERVICES - 2.8% | ||||||||
5,357 | Cintas Corporation | 1,893,914 | ||||||
16,302 | Republic Services, Inc. | 1,779,852 | ||||||
21,773 | Waste Management, Inc. | 3,063,026 | ||||||
6,736,792 | ||||||||
CONSTRUCTION MATERIALS - 1.0% | ||||||||
3,193 | Martin Marietta Materials, Inc. | 1,161,134 | ||||||
6,956 | Vulcan Materials Company | 1,275,174 | ||||||
2,436,308 | ||||||||
CONTAINERS & PACKAGING - 0.8% | ||||||||
12,540 | International Paper Company | 791,274 | ||||||
7,980 | Sealed Air Corporation | 453,743 | ||||||
13,003 | Westrock Company ^ | 758,335 | ||||||
2,003,352 | ||||||||
DIVERSIFIED INDUSTRIALS - 6.9% | ||||||||
7,412 | Dover Corporation | 1,115,506 | ||||||
30,892 | Emerson Electric Company | 2,956,055 | ||||||
36,812 | Honeywell International, Inc. | 8,500,259 | ||||||
16,302 | Illinois Tool Works, Inc. | 3,778,152 | ||||||
16,349,972 | ||||||||
ELECTRIC UTILITIES - 6.7% | ||||||||
12,654 | Alliant Energy Corporation | 723,176 | ||||||
24,965 | American Electric Power Company, Inc. | 2,146,990 | ||||||
27,810 | CenterPoint Energy, Inc. | 703,593 | ||||||
17,438 | Consolidated Edison, Inc. | 1,346,911 | ||||||
9,917 | DTE Energy Company | 1,368,447 | ||||||
10,371 | Entergy Corporation | 1,091,651 | ||||||
96,238 | NextEra Energy, Inc. | 7,046,546 | ||||||
16,640 | WEC Energy Group, Inc. | 1,562,662 | ||||||
15,989,976 | ||||||||
ELECTRICAL EQUIPMENT - 3.7% | ||||||||
12,083 | AMETEK, Inc. | 1,632,413 |
See accompanying notes to financial statements.
42
Inspire 100 ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
ELECTRICAL EQUIPMENT (continued) - 3.7% | ||||||||
30,445 | Amphenol Corporation | $ | 2,047,731 | |||||
17,897 | Fortive Corporation | 1,297,890 | ||||||
37,511 | Johnson Controls International plc | 2,495,982 | ||||||
9,574 | Keysight Technologies, Inc. * | 1,363,146 | ||||||
8,837,162 | ||||||||
ENTERTAINMENT CONTENT - 0.8% | ||||||||
29,736 | Discovery, Inc. * ^ | 954,823 | ||||||
34,073 | Discovery, Inc. - Class C * ^ | 1,023,894 | ||||||
1,978,717 | ||||||||
FOOD - 0.5% | ||||||||
13,454 | McCormick & Company, Inc. | 1,198,213 | ||||||
GAS & WATER UTILITIES - 0.2% | ||||||||
20,286 | NiSource, Inc. | 517,293 | ||||||
HEALTHCARE FACILITIES & SERVICES - 2.7% | ||||||||
10,486 | AmerisourceBergen Corporation | 1,203,164 | ||||||
31,231 | Centene Corporation * | 2,298,602 | ||||||
7,524 | Henry Schein, Inc. * | 572,125 | ||||||
10,033 | IQVIA Holdings, Inc. * | 2,409,525 | ||||||
6,483,416 | ||||||||
HOME CONSTRUCTION - 0.9% | ||||||||
16,417 | DR Horton, Inc. | 1,564,376 | ||||||
3,647 | Mohawk Industries, Inc. * | 768,350 | ||||||
2,332,726 | ||||||||
INDUSTRIAL SUPPORT SERVICES - 0.5% | ||||||||
3,761 | United Rentals, Inc. * | 1,256,024 | ||||||
INSURANCE - 0.9% | ||||||||
36,132 | Aflac, Inc. | 2,047,962 | ||||||
MACHINERY - 3.8% | ||||||||
28,954 | Caterpillar, Inc. | 6,980,230 | ||||||
6,954 | Parker-Hannifin Corporation | 2,142,875 | ||||||
9,123,105 | ||||||||
MEDICAL EQUIPMENT & DEVICES - 5.3% | ||||||||
15,847 | Agilent Technologies, Inc. | 2,188,946 | ||||||
4,218 | Align Technology, Inc. * | 2,489,253 | ||||||
32,720 | Edwards Lifesciences Corporation * | 3,137,848 | ||||||
6,722 | Illumina, Inc. * | 2,726,712 | ||||||
2,394 | Teleflex, Inc. | 962,843 | ||||||
3,192 | Waters Corporation * | 1,028,622 | ||||||
12,534,224 | ||||||||
METALS & MINING - 2.4% | ||||||||
41,268 | Newmont Goldcorp Corp. | 3,032,373 | ||||||
39,551 | Southern Copper Corp. | 2,758,287 | ||||||
5,790,660 |
See accompanying notes to financial statements.
43
Inspire 100 ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
OIL & GAS PRODUCERS - 2.3% | ||||||||
13,225 | Cheniere Energy, Inc. * | $ | 1,122,803 | |||||
32,036 | EOG Resources, Inc. | 2,573,772 | ||||||
10,947 | Pioneer Natural Resources Co. | 1,666,024 | ||||||
5,362,599 | ||||||||
OIL & GAS SERVICES & EQUIPMENT - 2.0% | ||||||||
50,500 | Halliburton Company | 1,133,725 | ||||||
34,738 | NOV, Inc. * | 559,977 | ||||||
75,254 | Schlumberger NV | 2,357,708 | ||||||
75,268 | TechnipFMC PLC * | 646,552 | ||||||
4,697,962 | ||||||||
REAL ESTATE INVESTMENT TRUSTS - 10.9% | ||||||||
7,409 | Alexandria Real Estate Equities, Inc. | 1,320,728 | ||||||
21,997 | American Tower Corporation | 5,619,354 | ||||||
21,772 | Crown Castle International Corporation | 4,125,794 | ||||||
4,445 | Equinix, Inc. | 3,274,720 | ||||||
19,033 | Equity Residential | 1,474,106 | ||||||
36,241 | Prologis, Inc. | 4,270,639 | ||||||
18,690 | Realty Income Corporation | 1,278,396 | ||||||
5,586 | SBA Communications Corporation | 1,665,298 | ||||||
16,071 | Simon Property Group, Inc. | 2,064,963 | ||||||
9,118 | WP Carey, Inc. | 687,953 | ||||||
25,781,951 | ||||||||
RETAIL - CONSUMER STAPLES - 3.7% | ||||||||
22,798 | Costco Wholesale Corporation | 8,623,799 | ||||||
RETAIL - DISCRETIONARY - 4.0% | ||||||||
36,932 | Lowe’s Companies, Inc. | 7,195,462 | ||||||
18,806 | Ross Stores, Inc. | 2,376,890 | ||||||
9,572,352 | ||||||||
SEMICONDUCTORS - 12.0% | ||||||||
19,495 | Analog Devices, Inc. | 3,208,877 | ||||||
29,874 | NVIDIA Corporation | 19,411,528 | ||||||
14,254 | NXP Semiconductors NV | 3,013,581 | ||||||
7,867 | Skyworks Solutions, Inc. | 1,337,390 | ||||||
11,862 | Xilinx, Inc. | 1,506,474 | ||||||
28,477,850 | ||||||||
SOFTWARE - 2.6% | ||||||||
4,332 | ANSYS, Inc. * | 1,463,956 | ||||||
4,902 | Palo Alto Networks, Inc. * | 1,780,652 | ||||||
12,998 | SS&C Technologies Holdings, Inc. | 960,162 | ||||||
7,525 | Synopsys, Inc. * | 1,913,909 | ||||||
6,118,679 | ||||||||
STEEL - 0.7% | ||||||||
15,740 | Nucor Corp. | 1,613,980 | ||||||
TECHNOLOGY HARDWARE - 1.5% | ||||||||
9,692 | Garmin Ltd. | 1,378,590 | ||||||
68,142 | Hewlett Packard Enterprise Company | 1,087,546 |
See accompanying notes to financial statements.
44
Inspire 100 ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
TECHNOLOGY HARDWARE (continued) - 1.5% | ||||||||
12,193 | NetApp, Inc. | $ | 943,372 | |||||
3,409,508 | ||||||||
TECHNOLOGY SERVICES - 5.5% | ||||||||
27,585 | Cognizant Technology Solutions Corporation | 1,973,983 | ||||||
6,154 | Equifax, Inc. | 1,446,436 | ||||||
4,560 | Gartner, Inc. * | 1,057,190 | ||||||
15,845 | Global Payments, Inc. | 3,069,335 | ||||||
4,332 | MSCI, Inc. | 2,027,939 | ||||||
18,915 | Paychex, Inc. | 1,913,063 | ||||||
8,435 | Verisk Analytics, Inc. | 1,457,821 | ||||||
12,945,767 | ||||||||
TRANSPORTATION & LOGISTICS - 5.6% | ||||||||
41,834 | CSX Corporation | 4,188,420 | ||||||
5,588 | JB Hunt Transport Services, Inc. | 958,566 | ||||||
36,366 | Union Pacific Corporation | 8,172,531 | ||||||
13,319,517 | ||||||||
TRANSPORTATION EQUIPMENT - 0.6% | ||||||||
16,077 | PACCAR, Inc. | 1,472,010 | ||||||
WHOLESALE - CONSUMER STAPLES - 0.9% | ||||||||
27,009 | Sysco Corp | 2,187,729 | ||||||
TOTAL COMMON STOCKS (Cost $181,997,536) | 236,643,466 | |||||||
COLLATERAL FOR SECURITIES LOANED - 0.8% ^^ | ||||||||
MONEY MARKET FUND - 0.8% | ||||||||
1,909,444 | Fidelity Government Portfolio - Institutional Class, to yield 0.01% + | 1,909,444 | ||||||
TOTAL MONEY MARKET FUND (Cost $1,909,444) | ||||||||
TOTAL INVESTMENTS - 100.3% (Cost $183,906,980) | $ | 238,552,910 | ||||||
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.3)% | (659,225 | ) | ||||||
NET ASSETS - 100.0% | $ | 237,893,685 |
^ | All or a portion of this security is on loan as of May 31, 2021. The total value of securities on loan as of May 31, 2021 is $1,870,172. |
^^ | This security was purchased with cash collateral held from securities on loan. The total value of such security as of May 31, 2021 is $1,909,444. |
* | Non-Income producing security. |
+ | Money market fund; interest rate reflects seven-day effective yield on May 31, 2021. |
PLC - Public Limited Company
See accompanying notes to financial statements.
45
Inspire International ESG ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) |
May 31, 2021 |
Shares | Value | |||||||
COMMON STOCKS - 97.8% | ||||||||
AEROSPACE & DEFENSE - 0.8% | ||||||||
69,479 | Embraer SA - ADR * ^ | $ | 930,324 | |||||
APPAREL & TEXTILE PRODUCTS - 1.5% | ||||||||
2,025 | Burberry Group PLC * | 61,328 | ||||||
6,710 | Cie Financiere Richemont SA | 814,847 | ||||||
2,257 | Swatch Group AG | 817,490 | ||||||
1,693,665 | ||||||||
ASSET MANAGEMENT - 2.0% | ||||||||
6,222 | Groupe Bruxelles Lambert SA | 706,394 | ||||||
281,027 | Melrose Industries PLC | 688,131 | ||||||
488 | Partners Group Holding AG | 737,381 | ||||||
2,131,906 | ||||||||
AUTOMOTIVE - 3.2% | ||||||||
4,636 | Aptiv PLC * | 697,347 | ||||||
4,453 | Cie Generale des Etablissements Michelin | 681,308 | ||||||
18,483 | Nokian Renkaat OYJ | 740,296 | ||||||
32,635 | Tata Motors Ltd. - ADR * ^ | 709,159 | ||||||
19,520 | Valeo SA | 642,252 | ||||||
3,470,362 | ||||||||
BANKING - 12.3% | ||||||||
83,143 | Bank Hapoalim BM * | 729,201 | ||||||
98,759 | Bank Leumi Le-Israel * | 792,309 | ||||||
102,724 | Commerzbank AG * | 828,257 | ||||||
9,882 | Commonwealth Bank of Australia | 766,119 | ||||||
45,628 | Credit Agricole SA ^ | 683,767 | ||||||
34,343 | Danske Bank A/S | 646,654 | ||||||
8,357 | HDFC Bank Ltd. - ADR * | 639,561 | ||||||
41,602 | ICICI Bank Ltd. - ADR * ^ | 749,252 | ||||||
223,199 | Investec PLC | 981,985 | ||||||
8,845 | KBC Group NV | 723,834 | ||||||
5,612 | Macquarie Group Ltd. | 659,673 | ||||||
161,833 | Malayan Banking Bhd - ADR | 694,264 | ||||||
11,590 | mBank SA * | 944,593 | ||||||
613,580 | Metropolitan Bank & Trust Company | 627,733 | ||||||
32,818 | National Australia Bank Ltd. | 685,405 | ||||||
136,335 | Natixis SA ^ | 673,939 | ||||||
76,677 | Nedbank Group Ltd. * | 891,230 | ||||||
29,951 | Raiffeisen Bank International AG | 714,008 | ||||||
13,431,784 | ||||||||
CHEMICALS - 8.1% | ||||||||
4,026 | Air Liquide SA | 684,441 | ||||||
2,905,552 | AKR Corporindo Tbk PT | 659,012 | ||||||
5,856 | Akzo Nobel N.V. | 746,163 | ||||||
5,307 | Arkema SA ^ | 703,039 |
See accompanying notes to financial statements.
46
Inspire International ESG ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
CHEMICALS (continued) - 8.1% | ||||||||
7,747 | Brenntag AG | $ | 727,405 | |||||
7,442 | Croda International PLC | 737,349 | ||||||
170 | Givaudan SA | 760,236 | ||||||
108,580 | ICL Group Ltd. | 774,533 | ||||||
13,298 | Imerys SA | 694,612 | ||||||
15,860 | Johnson Matthey PLC | 684,958 | ||||||
65,087 | K+S AG * | 899,894 | ||||||
6,344 | LyondellBasell Industries NV | 714,461 | ||||||
8,786,103 | ||||||||
COMMERCIAL SUPPORT SERVICES - 2.5% | ||||||||
23,058 | Bureau Veritas SA * | 706,978 | ||||||
12,322 | Edenred | 678,605 | ||||||
8,601 | Intertek Group PLC | 661,941 | ||||||
9,089 | Randstad Holding NV | 707,486 | ||||||
2,755,010 | ||||||||
CONSTRUCTION MATERIALS - 1.3% | ||||||||
11,285 | Holcim Ltd. | 676,059 | ||||||
21,960 | James Hardie Industries PLC - ADR | 718,174 | ||||||
1,394,233 | ||||||||
CONSUMER SERVICES - 0.6% | ||||||||
903,593 | Cogna Educacao - ADR * | 706,655 | ||||||
CONTAINERS & PACKAGING - 1.9% | ||||||||
57,096 | Amcor PLC - ADR | 671,277 | ||||||
83,143 | Brambles Ltd. | 695,475 | ||||||
25,376 | Mondi PLC | 685,947 | ||||||
2,052,699 | ||||||||
DIVERSIFIED INDUSTRIALS - 1.4% | ||||||||
20,679 | Alfa Laval AB | 770,325 | ||||||
10,858 | Pentair PLC | 748,876 | ||||||
1,519,201 | ||||||||
ELECTRIC UTILITIES - 3.6% | ||||||||
815,210 | Aboitiz Equity Ventures, Inc. | 682,220 | ||||||
82,167 | AGL Energy Ltd. | 523,877 | ||||||
345,439 | Cia Energetica de Minas Gerais - ADR | 894,687 | ||||||
65,331 | Enel SpA | 648,044 | ||||||
181,414 | Origin Energy Ltd. | 570,634 | ||||||
62,464 | Tenaga Nasional Bhd - ADR | 604,964 | ||||||
3,924,426 | ||||||||
ELECTRICAL EQUIPMENT - 3.9% | ||||||||
20,984 | ABB Ltd. | 715,282 | ||||||
5,368 | Allegion PLC | 754,097 | ||||||
11,102 | Johnson Controls International PLC | 738,727 | ||||||
8,052 | Kone OYJ | 654,623 | ||||||
20,984 | Prysmian SpA | 724,162 |
See accompanying notes to financial statements.
47
Inspire International ESG ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
ELECTRICAL EQUIPMENT (continued) - 3.9% | ||||||||
2,257 | Schindler Holding AG | $ | 671,546 | |||||
4,258,437 | ||||||||
ENGINEERING & CONSTRUCTION - 1.3% | ||||||||
20,740 | Boskalis Westminster | 706,899 | ||||||
6,283 | Vinci SA | 714,850 | ||||||
1,421,749 | ||||||||
FOOD - 1.2% | ||||||||
20,374 | Associated British Foods PLC | 670,474 | ||||||
66,307 | Orkla ASA | 692,297 | ||||||
1,362,771 | ||||||||
FORESTRY, PAPER & WOOD PRODUCTS - 0.6% | ||||||||
17,263 | UPM-Kymmene OYJ | 658,837 | ||||||
GAS & WATER UTILITIES - 0.6% | ||||||||
89,975 | Cia de Saneamento Basico do Estado de Sao Paulo - ADR ^ | 691,908 | ||||||
HEALTHCARE FACILITIES & SERVICES - 0.5% | ||||||||
12,505 | Ramsay Health Care Ltd. | 610,837 | ||||||
HOME CONSTRUCTION - 1.4% | ||||||||
1,037 | Geberit AG | 753,281 | ||||||
16,165 | Persimmon PLC | 724,258 | ||||||
1,477,539 | ||||||||
INDUSTRIAL SUPPORT SERVICES - 1.3% | ||||||||
5,490 | Ferguson PLC | 746,019 | ||||||
32,574 | Rexel SA | 662,260 | ||||||
1,408,279 | ||||||||
INSTITUTIONAL FINANCIAL SERVICES - 0.7% | ||||||||
6,710 | London Stock Exchange Group PLC | 720,574 | ||||||
INSURANCE - 3.7% | ||||||||
150,304 | Direct Line Insurance Group PLC | 633,572 | ||||||
26,840 | Gjensidige Forsikring ASA | 605,014 | ||||||
175,497 | Insurance Australia Group Ltd. | 675,144 | ||||||
174,338 | Legal & General Group PLC | 702,748 | ||||||
69,784 | RSA Insurance Group PLC | 676,970 | ||||||
15,006 | Sampo OYJ | 713,634 | ||||||
4,007,082 | ||||||||
INTERNET MEDIA & SERVICES - 1.2% | ||||||||
2,806 | Naspers Ltd. | 617,889 | ||||||
17,141 | Trip.com Group Ltd. - ADR * | 717,351 | ||||||
1,335,240 | ||||||||
LEISURE FACILITIES & SERVICES - 0.6% | ||||||||
14,213 | Whitbread PLC * | 641,234 |
See accompanying notes to financial statements.
48
Inspire International ESG ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
MACHINERY - 1.4% | ||||||||
36,966 | IMI PLC | $ | 870,044 | |||||
24,034 | Sandvik AB | 638,554 | ||||||
1,508,598 | ||||||||
MEDICAL EQUIPMENT & DEVICES - 4.0% | ||||||||
4,026 | Cochlear Ltd. | 699,079 | ||||||
4,270 | Coloplast A/S | 678,181 | ||||||
15,738 | Demant A/S * | 840,670 | ||||||
4,148 | EssilorLuxottica SA ^ | 720,441 | ||||||
35,441 | Smith & Nephew PLC | 774,102 | ||||||
133,590 | Top Glove Corp Bhd - ADR | 638,560 | ||||||
4,351,033 | ||||||||
METALS & MINING - 7.8% | ||||||||
7,661,173 | Adaro Energy Tbk PT | 627,481 | ||||||
17,080 | Anglo American PLC | 759,200 | ||||||
28,182 | Antofagasta PLC | 617,150 | ||||||
23,119 | BHP Group PLC | 695,905 | ||||||
17,568 | Boliden A.B. | 704,257 | ||||||
16,128 | Boliden A.B. Redemption Shares * | 11,589 | ||||||
44,225 | Fortescue Metals Group Ltd. | 754,188 | ||||||
52,216 | Fresnillo PLC | 664,534 | ||||||
135,847 | Grupo Mexico SAB de CV | 650,829 | ||||||
33,916 | Newcrest Mining Ltd. | 735,269 | ||||||
112,118 | Norsk Hydro ASA | 726,995 | ||||||
8,784 | Rio Tinto PLC | 755,235 | ||||||
52,887 | Vedanta Ltd. - ADR ^ | 784,314 | ||||||
8,486,946 | ||||||||
OIL & GAS PRODUCERS - 3.9% | ||||||||
34,038 | Ampol Ltd. | 765,468 | ||||||
53,741 | Eni SpA | 660,800 | ||||||
33,306 | Equinor ASA | 724,180 | ||||||
13,115 | Koninklijke Vopak NV | 620,829 | ||||||
81,252 | Petroleo Brasileiro SA - ADR | 829,583 | ||||||
186,416 | Ultrapar Participacoes SA - ADR ^ | 684,147 | ||||||
4,285,007 | ||||||||
OIL & GAS SERVICES & EQUIPMENT - 0.7% | ||||||||
85,400 | TechnipFMC PLC * | 733,586 | ||||||
REAL ESTATE INVESTMENT TRUSTS - 3.8% | ||||||||
7,625 | Covivio | 718,551 | ||||||
89,975 | Dexus | 720,022 | ||||||
46,848 | Goodman Group | 698,151 | ||||||
68,198 | Land Securities Group PLC | 679,957 | ||||||
92,415 | The British Land Company PLC | 668,257 | ||||||
185,379 | The GPT Group | 663,139 | ||||||
4,148,077 | ||||||||
REAL ESTATE OWNERS & DEVELOPERS - 1.8% | ||||||||
39,050 | Ayala Corp. | 636,434 |
See accompanying notes to financial statements.
49
Inspire International ESG ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
REAL ESTATE OWNERS & DEVELOPERS (continued) - 1.8% | ||||||||
817,520 | Ayala Land, Inc. | $ | 590,082 | |||||
348,127 | Mirvac Group | 754,172 | ||||||
1,980,688 | ||||||||
RENEWABLE ENERGY - 0.6% | ||||||||
17,995 | Vestas Wind Systems A/S | 703,900 | ||||||
RETAIL - CONSUMER STAPLES - 1.5% | ||||||||
128,832 | Cia Brasileira de Distribuicao - ADR ^ | 966,240 | ||||||
265,106 | Wm Morrison Supermarkets PLC | 664,745 | ||||||
1,630,985 | ||||||||
RETAIL - DISCRETIONARY - 2.8% | ||||||||
146,217 | Kingfisher PLC | 746,952 | ||||||
316,529 | Marks & Spencer Group PLC * | 742,300 | ||||||
6,222 | Next PLC * | 719,688 | ||||||
6,283 | Pandora A/S | 850,310 | ||||||
3,059,250 | ||||||||
SEMICONDUCTORS - 2.5% | ||||||||
1,098 | ASML Holding NV | 738,718 | ||||||
15,982 | Infineon Technologies AG | 646,646 | ||||||
3,477 | NXP Semiconductors NV | 735,107 | ||||||
17,751 | STMicroelectronics NV - ADR ^ | 662,822 | ||||||
2,783,293 | ||||||||
SOFTWARE - 0.7% | ||||||||
78,995 | The Sage Group PLC | 735,413 | ||||||
SPECIALTY FINANCE - 0.0% | ||||||||
1,663 | Isracard Ltd. * | 6,703 | ||||||
TECHNOLOGY HARDWARE - 0.6% | ||||||||
48,983 | Telefonaktiebolaget LM Ericsson | 655,359 | ||||||
TECHNOLOGY SERVICES - 1.4% | ||||||||
34,892 | Infosys Ltd. - ADR | 674,811 | ||||||
102,602 | Wipro Ltd. - ADR ^ | 813,634 | ||||||
1,488,445 | ||||||||
TELECOMUNICATIONS - 1.3% | ||||||||
79,849 | Mobile TeleSystems PJSC ADR | 728,223 | ||||||
80,520 | Telefonica Brasil SA ADR ^ | 681,199 | ||||||
1,409,422 | ||||||||
TRANSPORTATION & LOGISTICS - 5.5% | ||||||||
5,368 | Aeroports de Paris * | 729,756 | ||||||
202,642 | Babcock International Group PLC * | 859,363 | ||||||
50,386 | easyJet PLC * | 719,042 | ||||||
10,919 | Fraport AG Frankfurt Airport Services Worldwide * | 760,018 | ||||||
38,003 | Grupo Aeroportuario del Sureste SAB de CV * | 670,797 |
See accompanying notes to financial statements.
50
Inspire International ESG ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
TRANSPORTATION & LOGISTICS (continued) - 5.5% | ||||||||
2,257 | Kuehne + Nagel International AG | $ | 762,071 | |||||
93,940 | Royal Mail PLC * | 770,655 | ||||||
5,734 | Ryanair Holdings PLC - ADR * | 669,444 | ||||||
5,941,146 | ||||||||
TRANSPORTATION EQUIPMENT - 0.7% | ||||||||
24,705 | Volvo AB | 669,741 | ||||||
WHOLESALE - DISCRETIONARY - 0.6% | ||||||||
20,496 | Bunzl PLC | 664,027 | ||||||
TOTAL COMMON STOCKS (Cost $82,785,473) | 106,632,474 | |||||||
STOCK WARRANT - 0.0% | ||||||||
APPAREL & TEXTILE PRODUCTS - 0.0% | ||||||||
12,580 | Cie Financiere Richemont SA * | 8,107 | ||||||
TOTAL STOCK WARRANT (Cost $6,914) | ||||||||
COLLATERAL FOR SECURITIES LOANED - 8.0% ^^ | ||||||||
MONEY MARKET FUND - 8.0% | ||||||||
8,696,027 | Fidelity Government Portfolio - Institutional Class, to yield 0.01% + | 8,696,027 | ||||||
TOTAL MONEY MARKET FUND (Cost $8,696,027) | ||||||||
TOTAL INVESTMENTS - 105.8% (Cost $91,488,414) | $ | 115,336,608 | ||||||
LIABILITIES IN EXCESS OF OTHER ASSETS - (5.8)% | (6,333,133 | ) | ||||||
NET ASSETS - 100.0% | $ | 109,003,475 |
^ | All or a portion of this security is on loan as of May 31, 2021. The total value of securities on loan as of May 31, 2021 is $8,411,860. |
^^ | This security was purchased with cash collateral held from securities on loan. The total value of such security as of May 31, 2021 is $8,696,027. |
* | Non-Income producing security. |
+ | Money market fund; interest rate reflects seven-day effective yield on May 31, 2021. |
ADR - American Depositary Receipt
PLC - Public Limited Company
See accompanying notes to financial statements.
51
Inspire Tactical Balanced ESG ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) |
May 31, 2021 |
Shares | Value | |||||||
CLOSED END FUND - 5.0% | ||||||||
COMMODITY - 5.0% | ||||||||
306280 | Sprott Physical Gold Trust * | $ | 4,652,393 | |||||
�� | TOTAL CLOSED END FUND (Cost $4,448,411) | |||||||
COMMON STOCKS - 79.4% | ||||||||
AUTOMOTIVE - 0.7% | ||||||||
4,160 | Aptiv PLC * | 625,747 | ||||||
BANKING - 0.9% | ||||||||
14,040 | Regions Financial Corporation | 328,676 | ||||||
780 | SVB Financial Group * | 454,654 | ||||||
783,330 | ||||||||
BIOTECHNOLOGY & PHARMACEUTICALS - 3.8% | ||||||||
3,380 | Alexion Pharmaceuticals, Inc. * | 596,739 | ||||||
1,560 | Regeneron Pharmaceuticals, Inc. * | 783,791 | ||||||
4,030 | Vertex Pharmaceuticals, Inc. * | 840,779 | ||||||
7,410 | Zoetis Inc | 1,309,199 | ||||||
3,530,508 | ||||||||
CHEMICALS - 0.6% | ||||||||
4,030 | International Flavors & Fragrances, Inc. | 570,930 | ||||||
COMMERCIAL SUPPORT SERVICES - 2.2% | ||||||||
1,690 | Cintas Corporation | 597,483 | ||||||
4,810 | Republic Services, Inc. | 525,156 | ||||||
6,370 | Waste Management, Inc. | 896,132 | ||||||
2,018,771 | ||||||||
CONSTRUCTION MATERIALS - 0.8% | ||||||||
910 | Martin Marietta Materials, Inc. | 330,921 | ||||||
1,950 | Vulcan Materials Company | 357,474 | ||||||
688,395 | ||||||||
CONTAINERS & PACKAGING - 0.7% | ||||||||
5,590 | International Paper Company | 352,729 | ||||||
1,950 | Sealed Air Corporation | 110,877 | ||||||
3,640 | Westrock Company | 212,285 | ||||||
675,891 | ||||||||
DIVERSIFIED INDUSTRIALS - 5.3% | ||||||||
2,210 | Dover Corporation | 332,605 | ||||||
9,100 | Emerson Electric Company | 870,779 | ||||||
11,310 | Honeywell International, Inc. | 2,611,592 | ||||||
4,680 | Illinois Tool Works, Inc. | 1,084,637 | ||||||
4,899,613 | ||||||||
ELECTRIC UTILITIES - 5.6% | ||||||||
3,900 | Alliant Energy Corporation | 222,885 | ||||||
8,060 | American Electric Power Company, Inc. | 693,160 | ||||||
8,580 | CenterPoint Energy, Inc. | 217,074 | ||||||
5,330 | Consolidated Edison, Inc. | 411,689 | ||||||
2,990 | DTE Energy Company | 412,590 | ||||||
3,120 | Entergy Corporation | 328,411 | ||||||
33,150 | NextEra Energy, Inc. | 2,427,243 |
See accompanying notes to financial statements.
52
Inspire Tactical Balanced ESG ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
ELECTRIC UTILITIES (continued) - 5.6% | ||||||||
5,070 | WEC Energy Group, Inc. | $ | 476,124 | |||||
5,189,176 | ||||||||
ELECTRICAL EQUIPMENT - 3.0% | ||||||||
3,640 | AMETEK, Inc. | 491,764 | ||||||
9,750 | Amphenol Corporation | 655,785 | ||||||
5,720 | Fortive Corporation | 414,814 | ||||||
11,050 | Johnson Controls International PLC | 735,267 | ||||||
3,250 | Keysight Technologies, Inc. * | 462,735 | ||||||
2,760,365 | ||||||||
ENTERTAINMENT CONTENT - 0.8% | ||||||||
11,180 | Discovery, Inc. * ^ | 358,990 | ||||||
12,740 | Discovery, Inc. - Class C * ^ | 382,837 | ||||||
741,827 | ||||||||
FOOD - 0.4% | ||||||||
4,290 | McCormick & Company, Inc. | 382,067 | ||||||
GAS & WATER UTILITIES - 0.2% | ||||||||
5,980 | NiSource, Inc. | 152,490 | ||||||
HEALTHCARE FACILITIES & SERVICES - 2.0% | ||||||||
3,250 | AmerisourceBergen Corporation | 372,905 | ||||||
8,450 | Centene Corporation * | 621,920 | ||||||
2,080 | Henry Schein, Inc. * | 158,163 | ||||||
2,860 | IQVIA Holdings, Inc. * | 686,858 | ||||||
1,839,846 | ||||||||
HOME CONSTRUCTION - 0.8% | ||||||||
5,590 | DR Horton, Inc. | 532,671 | ||||||
1,040 | Mohawk Industries, Inc. * | 219,107 | ||||||
751,778 | ||||||||
INDUSTRIAL SUPPORT SERVICES - 0.4% | ||||||||
1,040 | United Rentals, Inc. * | 347,318 | ||||||
INSURANCE - 0.6% | ||||||||
10,270 | Aflac, Inc. | 582,104 | ||||||
MACHINERY - 2.8% | ||||||||
8,190 | Caterpillar, Inc. | 1,974,445 | ||||||
2,080 | Parker-Hannifin Corporation | 640,952 | ||||||
2,615,397 | ||||||||
MEDICAL EQUIPMENT & DEVICES - 4.5% | ||||||||
4,810 | Agilent Technologies, Inc. | 664,405 | ||||||
1,430 | Align Technology, Inc. * | 843,914 | ||||||
10,660 | Edwards Lifesciences Corporation * | 1,022,294 | ||||||
2,470 | Illumina, Inc. * | 1,001,931 | ||||||
780 | Teleflex, Inc. | 313,708 | ||||||
910 | Waters Corporation * | 293,247 | ||||||
4,139,499 |
See accompanying notes to financial statements.
53
Inspire Tactical Balanced ESG ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
METALS & MINING - 1.8% | ||||||||
12,090 | Newmont Corp. | $ | 888,373 | |||||
11,050 | Southern Copper Corp. | 770,627 | ||||||
1,659,000 | ||||||||
OIL & GAS PRODUCERS - 1.5% | ||||||||
3,510 | Cheniere Energy, Inc. * | 297,999 | ||||||
7,670 | EOG Resources, Inc. | 616,208 | ||||||
3,120 | Pioneer Natural Resources Company | 474,833 | ||||||
1,389,040 | ||||||||
OIL & GAS SERVICES & EQUIPMENT - 1.0% | ||||||||
11,700 | Halliburton Company | 262,665 | ||||||
4,550 | NOV, Inc. * | 73,346 | ||||||
17,160 | Schlumberger N.V. | 537,623 | ||||||
6,890 | TechnipFMC PLC * | 59,185 | ||||||
932,819 | ||||||||
REAL ESTATE INVESTMENT TRUSTS - 9.0% | ||||||||
2,340 | Alexandria Real Estate Equities, Inc. | 417,128 | ||||||
7,150 | American Tower Corporation | 1,826,539 | ||||||
6,890 | Crown Castle International Corporation | 1,305,655 | ||||||
1,430 | Equinix, Inc. | 1,053,510 | ||||||
5,980 | Equity Residential | 463,151 | ||||||
11,570 | Prologis, Inc. | 1,363,409 | ||||||
6,240 | Realty Income Corporation | 426,816 | ||||||
1,820 | SBA Communications Corporation | 542,578 | ||||||
4,940 | Simon Property Group, Inc. | 634,741 | ||||||
2,860 | WP Carey, Inc. | 215,787 | ||||||
8,249,314 | ||||||||
RETAIL - CONSUMER STAPLES - 2.8% | ||||||||
6,890 | Costco Wholesale Corporation | 2,606,280 | ||||||
RETAIL - DISCRETIONARY - 3.2% | ||||||||
11,570 | Lowe’s Companies, Inc. | 2,254,183 | ||||||
5,590 | Ross Stores, Inc. | 706,520 | ||||||
2,960,703 | ||||||||
SEMICONDUCTORS - 10.6% | ||||||||
6,110 | Analog Devices, Inc. | 1,005,706 | ||||||
10,400 | NVIDIA Corporation | 6,757,712 | ||||||
4,550 | NXP Semiconductors NV | 961,961 | ||||||
2,990 | Skyworks Solutions, Inc. | 508,300 | ||||||
4,030 | Xilinx, Inc. | 511,810 | ||||||
9,745,489 | ||||||||
SOFTWARE - 2.2% | ||||||||
1,560 | ANSYS, Inc. * | 527,186 | ||||||
1,560 | Palo Alto Networks, Inc. * | 566,670 | ||||||
4,030 | SS&C Technologies Holdings, Inc. | 297,696 | ||||||
2,600 | Synopsys, Inc. * | 661,284 | ||||||
2,052,836 | ||||||||
STEEL - 0.4% | ||||||||
3,510 | Nucor Corporation | 359,915 |
See accompanying notes to financial statements.
54
Inspire Tactical Balanced ESG ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
TECHNOLOGY HARDWARE - 1.1% | ||||||||
2,990 | Garmin Ltd. | $ | 425,298 | |||||
21,060 | Hewlett Packard Enterprise Company | 336,118 | ||||||
3,510 | NetApp, Inc. | 271,569 | ||||||
1,032,985 | ||||||||
TECHNOLOGY SERVICES - 4.4% | ||||||||
9,230 | Cognizant Technology Solutions Corporation | 660,499 | ||||||
1,820 | Equifax, Inc. | 427,773 | ||||||
1,170 | Gartner, Inc. * | 271,253 | ||||||
5,070 | Global Payments, Inc. | 982,110 | ||||||
1,430 | MSCI, Inc. | 669,426 | ||||||
5,720 | Paychex, Inc. | 578,521 | ||||||
2,730 | Verisk Analytics, Inc. | 471,826 | ||||||
4,061,408 | ||||||||
TRANSPORTATION & LOGISTICS - 4.1% | ||||||||
12,090 | CSX Corp. | 1,210,451 | ||||||
1,560 | JB Hunt Transport Services, Inc. | 267,602 | ||||||
10,140 | Union Pacific Corp. | 2,278,762 | ||||||
3,756,815 | ||||||||
TRANSPORTATION EQUIPMENT - 0.5% | ||||||||
5,460 | PACCAR, Inc. | 499,918 | ||||||
WHOLESALE - CONSUMER STAPLES - 0.7% | ||||||||
7,930 | Sysco Corporation | 642,330 | ||||||
TOTAL COMMON STOCKS (Cost $61,678,379) | 73,243,904 | |||||||
EXCHANGE TRADED FUND - 14.6% | ||||||||
FIXED INCOME - 14.6% | ||||||||
160,290 | Vanguard Long-Term Treasury ETF | 13,517,256 | ||||||
TOTAL EXCHANGE TRADED FUND (Cost $13,652,556) | ||||||||
COLLATERAL FOR SECURITIES LOANED - 0.5% ^^ | ||||||||
MONEY MARKET FUND - 0.5% | ||||||||
416,687 | Fidelity Government Portfolio - Institutional Class, to yield 0.01% + | 416,687 | ||||||
TOTAL MONEY MARKET FUND (Cost $416,687) | ||||||||
TOTAL INVESTMENTS - 99.5% (Cost $80,196,033) | $ | 91,830,240 | ||||||
OTHER ASSETS LESS LIABILITIES - 0.5% | 480,107 | |||||||
NET ASSETS - 100.0% | $ | 92,310,347 |
^ | All or a portion of this security is on loan as of May 31, 2021. The total value of securities on loan as of May 31, 2021 is $408,444. |
^^ | This security was purchased with cash collateral held from securities on loan. The total value of such security as of May 31, 2021 is $416,687. |
* | Non-Income producing security. |
+ | Money market fund; interest rate reflects seven-day effective yield on May 31, 2021. |
ADR - American Depositary Receipt
PLC - Public Limited Company
See accompanying notes to financial statements.
55
Inspire Faithward Mid Cap Momentum ESG ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) |
May 31, 2021 |
Shares | Value | |||||||
COMMON STOCKS - 99.2% | ||||||||
ASSET MANAGEMENT - 4.4% | ||||||||
5,684 | Affiliated Managers Group, Inc. | $ | 932,176 | |||||
18,386 | Artisan Partners Asset Management, Inc. | 939,157 | ||||||
1,871,333 | ||||||||
BANKING - 2.2% | ||||||||
22,156 | Bank OZK | 946,283 | ||||||
BEVERAGES - 4.5% | ||||||||
14,326 | Celsius Holdings, Inc. * | 938,926 | ||||||
19,372 | National Beverage Corporation | 967,244 | ||||||
1,906,170 | ||||||||
BIOTECHNOLOGY & PHARMACEUTICALS - 2.2% | ||||||||
5,046 | United Therapeutics Corporation * | 938,051 | ||||||
CONSTRUCTION MATERIALS - 2.2% | ||||||||
8,294 | Advanced Drainage Systems, Inc. | 940,705 | ||||||
CONSUMER SERVICES - 2.2% | ||||||||
15,138 | Rent-A-Center, Inc. | 935,680 | ||||||
ELECTRICAL EQUIPMENT- 2.2% | ||||||||
3,596 | Littelfuse, Inc. | 939,419 | ||||||
ENGINEERING & CONSTRUCTION - 2.2% | ||||||||
8,062 | MasTec, Inc. * | 937,852 | ||||||
FORESTRY, PAPER & WOOD PRODUCTS - 2.2% | ||||||||
12,064 | West Fraser Timber Company Ltd. | 929,049 | ||||||
HEALTHCARE FACILITIES & SERVICES - 8.8% | ||||||||
20,880 | Owens & Minor, Inc. | 933,545 | ||||||
28,362 | Patterson Companies, Inc. | 922,900 | ||||||
23,490 | Select Medical Holdings Corporation | 941,244 | ||||||
11,484 | The Ensign Group, Inc. | 955,469 | ||||||
3,753,158 | ||||||||
HOME CONSTRUCTION - 2.2% | ||||||||
16,124 | MDC Holdings, Inc. | 934,386 | ||||||
INDUSTRIAL INTERMEDIATE PRODUCTS - 2.2% | ||||||||
3,770 | Valmont Industries, Inc. | 934,960 | ||||||
INDUSTRIAL SUPPORT SERVICES - 4.5% | ||||||||
8,468 | Herc Holdings, Inc. * | 973,989 | ||||||
3,248 | Watsco, Inc. | 946,467 | ||||||
1,920,456 | ||||||||
INSTITUTIONAL FINANCIAL SERVICES - 2.2% | ||||||||
6,380 | Evercore, Inc. | 930,587 |
See accompanying notes to financial statements.
56
Inspire Faithward Mid Cap Momentum ESG ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
INTERNET MEDIA & SERVICES - 6.7% | ||||||||
4,756 | Fiverr International Ltd. * | $ | 976,454 | |||||
13,340 | TechTarget, Inc. * | 937,935 | ||||||
19,836 | Upwork, Inc. * | 933,681 | ||||||
2,848,070 | ||||||||
LEISURE PRODUCTS - 8.8% | ||||||||
21,344 | Camping World Holdings, Inc. | 947,460 | ||||||
6,090 | Fox Factory Holding Corporation * | 946,873 | ||||||
7,656 | Thor Industries, Inc. | 941,688 | ||||||
10,730 | YETI Holdings, Inc. * | 939,948 | ||||||
3,775,969 | ||||||||
MEDICAL EQUIPMENT & DEVICES - 2.2% | ||||||||
6,554 | STAAR Surgical Company * | 957,081 | ||||||
OIL & GAS PRODUCERS - 4.5% | ||||||||
14,036 | Cimarex Energy Company | 950,939 | ||||||
22,794 | PDC Energy, Inc. * | 962,363 | ||||||
1,913,302 | ||||||||
REAL ESTATE SERVICES - 2.2% | ||||||||
28,826 | eXp World Holdings, Inc. * | 929,927 | ||||||
RENEWABLE ENERGY - 4.3% | ||||||||
12,064 | Daqo New Energy Corporation - ADR * | 897,320 | ||||||
15,370 | Renewable Energy Group, Inc. * | 938,646 | ||||||
1,835,966 | ||||||||
RETAIL - CONSUMER STAPLES - 2.2% | ||||||||
21,228 | BJ’s Wholesale Club Holdings, Inc. * | 950,802 | ||||||
RETAIL - DISCRETIONARY - 8.7% | ||||||||
9,164 | AutoNation, Inc. * | 935,919 | ||||||
18,792 | National Vision Holdings, Inc. * | 933,399 | ||||||
14,616 | Foot Locker, Inc. | 925,047 | ||||||
9,512 | Dick’s Sporting Goods, Inc. | 927,705 | ||||||
3,722,070 | ||||||||
SEMICONDUCTORS - 2.2% | ||||||||
9,454 | Brooks Automation, Inc. | 965,159 | ||||||
SOFTWARE - 4.4% | ||||||||
14,210 | Digital Turbine, Inc. * | 940,276 | ||||||
6,786 | Omnicell, Inc. * | 943,254 | ||||||
1,883,530 | ||||||||
SPECIALTY FINANCE - 2.2% | ||||||||
9,338 | Walker & Dunlop, Inc. | 948,181 | ||||||
TECHNOLOGY HARDWARE - 2.2% | ||||||||
10,556 | Vicor Corporation * | 950,884 |
See accompanying notes to financial statements.
57
Inspire Faithward Mid Cap Momentum ESG ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
TECHNOLOGY SERVICES - 4.4% | ||||||||
11,832 | CoreLogic, Inc. | $ | 940,644 | |||||
8,642 | TTEC Holdings, Inc. | 936,879 | ||||||
1,877,523 | ||||||||
TOTAL COMMON STOCKS (Cost $39,582,713) | 42,376,553 | |||||||
TOTAL INVESTMENTS - 99.2% (Cost $39,582,713) | $ | 42,376,553 | ||||||
OTHER ASSETS LESS LIABILITIES - 0.8% | 342,668 | |||||||
NET ASSETS - 100.0% | $ | 42,719,221 |
* | Non-Income producing security. |
ADR - American Depositary Receipt
See accompanying notes to financial statements.
58
Inspire Faithward Large Cap Momentum ESG ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) |
May 31, 2021 |
Shares | Value | |||||||
COMMON STOCKS - 99.1% | ||||||||
AUTOMOTIVE - 2.3% | ||||||||
6,644 | Magna International, Inc. | $ | 668,320 | |||||
BANKING - 4.6% | ||||||||
8,888 | East West Bancorp, Inc. | 664,645 | ||||||
1,144 | SVB Financial Group * | 666,826 | ||||||
1,331,471 | ||||||||
BIOTECHNOLOGY & PHARMACEUTICALS - 2.3% | ||||||||
7,216 | Horizon Therapeutics PLC * | 661,418 | ||||||
CHEMICALS - 2.3% | ||||||||
18,480 | The Mosaic Company | 667,867 | ||||||
CONSTRUCTION MATERIALS - 2.3% | ||||||||
20,108 | James Hardie Industries PLC - ADR | 657,330 | ||||||
ELECTRICAL EQUIPMENT - 2.3% | ||||||||
2,024 | Generac Holdings, Inc. * | 665,329 | ||||||
ENGINEERING & CONSTRUCTION - 2.3% | ||||||||
6,952 | Quanta Services, Inc. | 662,873 | ||||||
ENTERTAINMENT CONTENT - 4.5% | ||||||||
6,864 | Activision Blizzard, Inc. | 667,524 | ||||||
2,552 | Sea Ltd. - ADR * | 646,268 | ||||||
1,313,792 | ||||||||
FOOD - 2.3% | ||||||||
5,016 | The J M Smucker Company | 668,583 | ||||||
GAS & WATER UTILITIES - 2.3% | ||||||||
14,696 | UGI Corporation | 676,751 | ||||||
HOME CONSTRUCTION - 2.3% | ||||||||
6,952 | DR Horton, Inc. | 662,456 | ||||||
INDUSTRIAL SUPPORT SERVICES - 2.3% | ||||||||
12,628 | Fastenal Company | 669,789 | ||||||
INSURANCE - 2.3% | ||||||||
4,532 | Arthur J Gallagher & Company | 664,437 | ||||||
MACHINERY - 2.3% | ||||||||
2,772 | Caterpillar, Inc. | 668,274 | ||||||
MEDICAL EQUIPMENT & DEVICES - 9.2% | ||||||||
1,100 | Align Technology, Inc. * | 649,165 | ||||||
10,032 | DENTSPLY SIRONA, Inc. | 671,341 |
See accompanying notes to financial statements.
59
Inspire Faithward Large Cap Momentum ESG ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
MEDICAL EQUIPMENT & DEVICES (continued) - 9.2% | ||||||||
1,188 | IDEXX Laboratories, Inc. * | $ | 663,035 | |||||
1,936 | West Pharmaceutical Services, Inc. | 672,779 | ||||||
2,656,320 | ||||||||
REAL ESTATE INVESTMENT TRUSTS - 4.5% | ||||||||
5,192 | Simon Property Group, Inc. | 667,120 | ||||||
440 | Texas Pacific Land Corporation | 639,373 | ||||||
1,306,493 | ||||||||
RENEWABLE ENERGY - 2.3% | ||||||||
2,596 | SolarEdge Technologies, Inc. * | 669,794 | ||||||
RETAIL - CONSUMER STAPLES - 2.3% | ||||||||
3,256 | Dollar General Corporation | 660,838 | ||||||
RETAIL - DISCRETIONARY - 2.3% | ||||||||
1,012 | RH * | 648,743 | ||||||
SEMICONDUCTORS - 9.4% | ||||||||
2,112 | KLA Corporation | 669,272 | ||||||
1,056 | NVIDIA Corporation | 686,168 | ||||||
5,764 | Taiwan Semiconductor Manufacturing Company Ltd. - ADR | 676,463 | ||||||
72,468 | United Microelectronics Corp. - ADR | 681,924 | ||||||
2,713,827 | ||||||||
SOFTWARE - 18.6% | ||||||||
5,236 | Cadence Design Systems, Inc. * | 664,920 | ||||||
8,052 | Cloudflare, Inc. * | 660,747 | ||||||
2,992 | Crowdstrike Holdings, Inc. * | 664,673 | ||||||
3,344 | DocuSign, Inc. * | 674,217 | ||||||
3,080 | Fortinet, Inc. * | 673,103 | ||||||
1,408 | ServiceNow, Inc. * | 667,223 | ||||||
2,508 | Veeva Systems, Inc. * | 730,681 | ||||||
3,432 | Zscaler, Inc. * | 666,494 | ||||||
5,402,058 | ||||||||
TECHNOLOGY HARDWARE - 4.6% | ||||||||
2,244 | Ubiquiti, Inc. | 676,611 | ||||||
1,320 | Zebra Technologies Corp. * | 656,106 | ||||||
1,332,717 | ||||||||
TECHNOLOGY SERVICES - 2.3% | ||||||||
1,452 | MarketAxess Holdings, Inc. | 677,416 | ||||||
TELECOMMUNICATIONS - 2.3% | ||||||||
21,076 | SK Telecom Company Ltd. - ADR | 675,275 | ||||||
WHOLESALE - CONSUMER STAPLES - 2.3% | ||||||||
7,656 | Bunge Ltd. | 664,694 |
See accompanying notes to financial statements.
60
Inspire Faithward Large Cap Momentum ESG ETF |
PORTFOLIO OF INVESTMENTS (Unaudited) (Continued) |
May 31, 2021 |
Shares | Value | |||||||
WHOLESALE - DISCRETIONARY - 2.3% | ||||||||
1,540 | Pool Corporation | $ | 672,287 | |||||
TOTAL COMMON STOCKS (Cost $27,098,744) | 28,719,152 | |||||||
TOTAL INVESTMENTS - 99.1% (Cost $27,098,744) | $ | 28,719,152 | ||||||
OTHER ASSETS LESS LIABILITIES - 0.9% | 276,834 | |||||||
NET ASSETS - 100.0% | $ | 28,995,986 |
* | Non-Income producing security. |
ADR - American Depositary Receipt
PLC - Public Limited Company
See accompanying notes to financial statements.
61
The Inspire ETFs |
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) |
May 31, 2021 |
Inspire Global Hope ETF | Inspire Small/Mid Cap Impact ETF | Inspire Corporate Bond Impact ETF | Inspire 100 ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investment securities: | ||||||||||||||||
At cost | $ | 106,384,033 | $ | 108,515,041 | $ | 182,948,874 | $ | 183,906,980 | ||||||||
At value | $ | 141,020,880 | $ | 131,086,418 | $ | 183,880,539 | $ | 238,552,910 | ||||||||
Cash | 2,088,948 | 1,337,465 | 3,029,943 | 1,066,896 | ||||||||||||
Foreign currencies (Cost $959,080, $0, $0 and $0, respectively) | 970,852 | — | — | — | ||||||||||||
Dividends and interest receivable | 433,963 | 82,439 | 1,559,465 | 253,308 | ||||||||||||
Prepaid expenses | 2,369 | 1,276 | 2,589 | 20,749 | ||||||||||||
TOTAL ASSETS | 144,517,012 | 132,507,598 | 188,472,536 | 239,893,863 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payable for investments purchased | — | 321,326 | — | — | ||||||||||||
Securities lending collateral payable | 3,270,309 | 13,564,191 | — | 1,909,444 | ||||||||||||
Distributions payable | — | — | 183,600 | — | ||||||||||||
Investment advisory fees payable | 34,573 | 35,410 | 46,059 | 46,954 | ||||||||||||
Custody fees payable | 28,624 | 20,516 | 12,615 | 12,575 | ||||||||||||
Payable to related parties | 24,580 | 18,189 | 29,800 | 26,773 | ||||||||||||
Accrued expenses and other liabilities | 14,081 | 13,466 | 11,324 | 4,432 | ||||||||||||
TOTAL LIABILITIES | 3,372,167 | 13,973,098 | 283,398 | 2,000,178 | ||||||||||||
NET ASSETS | $ | 141,144,845 | $ | 118,534,500 | $ | 188,189,138 | $ | 237,893,685 | ||||||||
Net Assets Consist Of: | ||||||||||||||||
Paid in capital | $ | 106,371,514 | $ | 103,213,951 | $ | 185,526,334 | $ | 180,266,005 | ||||||||
Accumulated earnings | 34,773,331 | 15,320,549 | 2,662,804 | 57,627,680 | ||||||||||||
NET ASSETS | $ | 141,144,845 | $ | 118,534,500 | $ | 188,189,138 | $ | 237,893,685 | ||||||||
Net Asset Value Per Share: | ||||||||||||||||
Net Assets | $ | 141,144,845 | $ | 118,534,500 | $ | 188,189,138 | $ | 237,893,685 | ||||||||
Shares of beneficial interest outstanding ($0 par value, unlimited shares authorized) | 3,600,000 | 3,200,000 | 7,200,000 | 5,700,000 | ||||||||||||
Net asset value, offering and redemption price per share (Net Assets ÷ Shares Outstanding) | $ | 39.21 | $ | 37.04 | $ | 26.14 | $ | 41.74 |
See accompanying notes to financial statements.
62
The Inspire ETFs |
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) |
May 31, 2021 |
Inspire Faithward Mid | Inspire Faithward | |||||||||||||||
Inspire International | Inspire Tactical | Cap | Large Cap | |||||||||||||
ESG ETF | Balanced ESG ETF | Momentum ESG ETF * | Momentum ESG ETF * | |||||||||||||
ASSETS | ||||||||||||||||
Investment securities: | ||||||||||||||||
At cost | $ | 91,488,414 | $ | 80,196,033 | $ | 39,582,713 | $ | 27,098,744 | ||||||||
At value | $ | 115,336,608 | $ | 91,830,240 | $ | 42,376,553 | $ | 28,719,152 | ||||||||
Cash | 705,753 | 891,001 | 602,163 | 336,327 | ||||||||||||
Foreign currencies (Cost $1,264,231, $0, $0, and $0, respectively) | 1,279,805 | — | — | — | ||||||||||||
Dividends and interest receivable | 479,774 | 79,709 | 16,427 | 14,577 | ||||||||||||
Receivable for investments sold | — | — | 8,103,650 | 3,059,646 | ||||||||||||
Prepaid expenses | 766 | — | — | — | ||||||||||||
TOTAL ASSETS | 117,802,706 | 92,800,950 | 51,098,793 | 32,129,702 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payable for investments purchased | — | — | 8,324,974 | 3,089,897 | ||||||||||||
Securities lending collateral payable | 8,696,027 | 416,687 | — | — | ||||||||||||
Investment advisory fees payable | 38,755 | 39,122 | 22,530 | 15,404 | ||||||||||||
Custody fees payable | 30,189 | 9,946 | 9,095 | 9,774 | ||||||||||||
Payable to related parties | 20,302 | 14,313 | 16,073 | 16,051 | ||||||||||||
Accrued expenses and other liabilities | 13,958 | 10,535 | 6,900 | 2,590 | ||||||||||||
TOTAL LIABILITIES | 8,799,231 | 490,603 | 8,379,572 | 3,133,716 | ||||||||||||
NET ASSETS | $ | 109,003,475 | $ | 92,310,347 | $ | 42,719,221 | $ | 28,995,986 | ||||||||
Net Assets Consist Of: | ||||||||||||||||
Paid in capital | $ | 81,967,424 | $ | 81,549,085 | $ | 39,147,771 | $ | 28,154,087 | ||||||||
Accumulated earnings | 27,036,051 | 10,761,262 | 3,571,450 | 841,899 | ||||||||||||
NET ASSETS | $ | 109,003,475 | $ | 92,310,347 | $ | 42,719,221 | $ | 28,995,986 | ||||||||
Net Asset Value Per Share: | ||||||||||||||||
Net Assets | $ | 109,003,475 | $ | 92,310,347 | $ | 42,719,221 | $ | 28,995,986 | ||||||||
Shares of beneficial interest outstanding ($0 par value, unlimited shares authorized) | 3,050,000 | 3,250,000 | 1,450,000 | 1,100,000 | ||||||||||||
Net asset value, offering and redemption price per share (Net Assets ÷ Shares Outstanding) | $ | 35.74 | $ | 28.40 | $ | 29.46 | (a) | $ | 26.36 |
* | The Inspire Faithward Mid Cap Momentum ESG ETF and Inspire Faithward Large Cap Momentum ESG ETF commenced operations on December 7, 2020. |
(a) | The NAV shown above differs from the traded NAV on May 31, 2021 due to financial statement rounding and/or financial statement adjustments. |
See accompanying notes to financial statements.
63
The Inspire ETFs |
STATEMENTS OF OPERATIONS (Unaudited) |
For the Six Months Ended May 31, 2021 |
Inspire Global Hope | Inspire Small/Mid | Inspire Corporate | ||||||||||||||
ETF | Cap Impact ETF | Bond Impact ETF | Inspire 100 ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends | $ | 2,116,406 | $ | 829,889 | $ | — | $ | 1,511,751 | ||||||||
Interest | 32 | 23 | 1,304,280 | 58 | ||||||||||||
Securities lending income | 8,283 | 27,373 | — | 3,612 | ||||||||||||
Less: Foreign withholding taxes | (112,914 | ) | (264 | ) | — | (1,754 | ) | |||||||||
TOTAL INVESTMENT INCOME | 2,011,807 | 857,021 | 1,304,280 | 1,513,667 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 186,257 | 159,966 | 250,606 | 283,380 | ||||||||||||
Administrative services | 48,002 | 38,958 | 61,430 | 57,125 | ||||||||||||
Custodian fees | 32,456 | 20,440 | 11,018 | 11,928 | ||||||||||||
Professional fees | 7,529 | 6,791 | 8,722 | 8,026 | ||||||||||||
Legal fees | 7,209 | 6,036 | 6,785 | 7,400 | ||||||||||||
Audit fees | 7,188 | 7,176 | 8,198 | 7,183 | ||||||||||||
Trustees fees and expenses | 6,469 | 6,436 | 6,415 | 7,552 | ||||||||||||
Printing and postage expenses | 6,437 | 7,092 | 6,323 | 5,821 | ||||||||||||
Transfer agent fees | 6,121 | 6,676 | 6,483 | 7,023 | ||||||||||||
Insurance expense | 3,243 | 1,995 | 3,537 | 2,736 | ||||||||||||
Other Expenses | 4,945 | 5,059 | 5,526 | 6,039 | ||||||||||||
TOTAL EXPENSES | 315,856 | 266,625 | 375,043 | 404,213 | ||||||||||||
Plus: Recapture of fees waived/expenses reimbursed by the Adviser | — | 47,300 | — | (72,754 | ) | |||||||||||
NET EXPENSES | 315,856 | 313,925 | 375,043 | 331,459 | ||||||||||||
NET INVESTMENT INCOME | 1,695,951 | 543,096 | 929,237 | 1,182,208 | ||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
In-kind redemptions | 4,503,569 | 1,777,706 | 1,651,681 | 2,932,913 | ||||||||||||
Investments | (598,064 | ) | 16,363,190 | 492,815 | (232,574 | ) | ||||||||||
Foreign currency transactions | 7,418 | 22 | — | — | ||||||||||||
3,912,923 | 18,140,918 | 2,144,496 | 2,700,339 | |||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | 20,215,257 | 10,684,413 | (4,047,540 | ) | 27,568,268 | |||||||||||
Foreign currency translations | 15,587 | 12 | — | — | ||||||||||||
20,230,844 | 10,684,425 | (4,047,540 | ) | 27,568,268 | ||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | 24,143,767 | 28,825,343 | (1,903,044 | ) | 30,268,607 | |||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 25,839,718 | $ | 29,368,439 | $ | (973,807 | ) | $ | 31,450,815 |
See accompanying notes to financial statements.
64
The Inspire ETFs |
STATEMENTS OF OPERATIONS (Unaudited) |
For the Six Months and Period Ended May 31, 2021 |
Inspire Faithward | Inspire Faithward | |||||||||||||||
Inspire | Mid Cap | Large Cap | ||||||||||||||
International ESG | Inspire Tactical | Momentum ESG | Momentum ESG | |||||||||||||
ETF | Balanced ESG ETF | ETF * | ETF * | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends | $ | 1,822,275 | $ | 723,007 | $ | 190,587 | $ | 65,469 | ||||||||
Interest | 19 | 42 | — | — | ||||||||||||
Securities lending income | 6,448 | 3,859 | — | — | ||||||||||||
Less: Foreign withholding taxes | (214,153 | ) | (598 | ) | (6,895 | ) | (1,091 | ) | ||||||||
TOTAL INVESTMENT INCOME | 1,614,589 | 726,310 | 183,692 | 64,378 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 191,536 | 201,961 | 106,942 | 80,880 | ||||||||||||
Administrative services | 38,757 | 29,278 | 24,272 | 24,272 | ||||||||||||
Custodian fees | 29,490 | 13,720 | 10,711 | 11,629 | ||||||||||||
Audit fees | 7,688 | 7,275 | 7,078 | 7,078 | ||||||||||||
Legal fees | 7,611 | 6,224 | 5,771 | 7,505 | ||||||||||||
Trustees fees and expenses | 6,165 | 5,824 | 5,325 | 5,325 | ||||||||||||
Transfer agent fees | 6,075 | 5,565 | 6,230 | 6,332 | ||||||||||||
Printing and postage expenses | 4,845 | 5,387 | 5,567 | 5,567 | ||||||||||||
Professional fees | 3,376 | 5,926 | 4,927 | 4,927 | ||||||||||||
Insurance expense | 1,290 | 1,268 | 143 | 143 | ||||||||||||
Other Expenses | 6,243 | 6,442 | 4,060 | 4,060 | ||||||||||||
TOTAL EXPENSES | 303,076 | 288,870 | 181,026 | 157,718 | ||||||||||||
NET INVESTMENT INCOME (LOSS) | 1,311,513 | 437,440 | 2,666 | (93,340 | ) | |||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
In-kind redemptions | 3,745,684 | 317,150 | 298,628 | 104,120 | ||||||||||||
Investments | 296,903 | (264,807 | ) | 476,316 | (789,289 | ) | ||||||||||
Foreign currency transactions | 12,291 | — | — | — | ||||||||||||
4,054,878 | 52,343 | 774,944 | (685,169 | ) | ||||||||||||
Net change in unrealized appreciation on: | ||||||||||||||||
Investments | 12,121,488 | 9,807,928 | 2,793,840 | 1,620,408 | ||||||||||||
Foreign currency translations | 12,358 | — | — | — | ||||||||||||
12,133,846 | 9,807,928 | 2,793,840 | 1,620,408 | |||||||||||||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS | 16,188,724 | 9,860,271 | 3,568,784 | 935,239 | ||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 17,500,237 | $ | 10,297,711 | $ | 3,571,450 | $ | 841,899 |
* | The Inspire Faithward Mid Cap Momentum ESG ETF and Inspire Faithward Large Cap Momentum ESG ETF commenced operations on December 7, 2020. |
See accompanying notes to financial statements.
65
Inspire Global Hope ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Six Months Ended | ||||||||
May 31, 2021 | Year Ended | |||||||
(Unaudited) | November 30, 2020 | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 1,695,951 | $ | 2,203,982 | ||||
Net realized gain on investments and foreign currency transactions | 3,912,923 | 5,463,573 | ||||||
Net change in unrealized appreciation on investments and foreign currency translations | 20,230,844 | 1,626,857 | ||||||
Net increase in net assets resulting from operations | 25,839,718 | 9,294,412 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid: | (920,760 | ) | (2,471,705 | ) | ||||
Net decrease in net assets resulting from distributions to shareholders | (920,760 | ) | (2,471,705 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 10,937,163 | 11,457,950 | ||||||
Cost of shares redeemed | (15,164,262 | ) | (58,500,651 | ) | ||||
Net decrease in net assets resulting from shares of beneficial interest | (4,227,099 | ) | (47,042,701 | ) | ||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | 20,691,859 | (40,219,994 | ) | |||||
NET ASSETS | ||||||||
Beginning of Period | 120,452,986 | 160,672,980 | ||||||
End of Period | $ | 141,144,845 | $ | 120,452,986 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 300,000 | 450,000 | ||||||
Shares Redeemed | (450,000 | ) | (2,200,000 | ) | ||||
Net decrease in shares of beneficial interest outstanding | (150,000 | ) | (1,750,000 | ) |
See accompanying notes to financial statements.
66
Inspire Small/Mid Cap Impact ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Six Months Ended | ||||||||
May 31, 2021 | Year Ended | |||||||
(Unaudited) | November 30, 2020 | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 543,096 | $ | 1,170,942 | ||||
Net realized gain (loss) on investments and foreign currency transactions | 18,140,918 | (8,534,298 | ) | |||||
Net change in unrealized appreciation on investments and foreign currency translations | 10,684,425 | 6,062,403 | ||||||
Net increase (decrease) in net assets resulting from operations | 29,368,439 | (1,300,953 | ) | |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid: | (406,885 | ) | (1,036,755 | ) | ||||
Net decrease in net assets resulting from distributions to shareholders | (406,885 | ) | (1,036,755 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 10,381,230 | 36,569,628 | ||||||
Cost of shares redeemed | (6,796,157 | ) | (47,470,140 | ) | ||||
Net increase (decrease) in net assets resulting from shares of beneficial interest | 3,585,073 | (10,900,512 | ) | |||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | 32,546,627 | (13,238,220 | ) | |||||
NET ASSETS | ||||||||
Beginning of Period | 85,987,873 | 99,226,093 | ||||||
End of Period | $ | 118,534,500 | $ | 85,987,873 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 300,000 | 1,500,000 | ||||||
Shares Redeemed | (200,000 | ) | (2,000,000 | ) | ||||
Net increase (decrease) in shares of beneficial interest outstanding | 100,000 | (500,000 | ) |
See accompanying notes to financial statements.
67
Inspire Corporate Bond Impact ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Six Months Ended | ||||||||
May 31, 2021 | Year Ended | |||||||
(Unaudited) | November 30, 2020 | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 929,237 | $ | 2,342,096 | ||||
Net realized gain on investments | 2,144,496 | 2,819,075 | ||||||
Net change in unrealized appreciation (depreciation) on investments | (4,047,540 | ) | 1,038,258 | |||||
Net increase (decrease) in net assets resulting from operations | (973,807 | ) | 6,199,429 | |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid: | (1,037,440 | ) | (2,648,430 | ) | ||||
Net decrease in net assets resulting from distributions to shareholders | (1,037,440 | ) | (2,648,430 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 52,475,278 | 101,690,884 | ||||||
Cost of shares redeemed | (29,103,564 | ) | (77,135,830 | ) | ||||
Net increase in net assets resulting from shares of beneficial interest | 23,371,714 | 24,555,054 | ||||||
TOTAL INCREASE IN NET ASSETS | 21,360,467 | 28,106,053 | ||||||
NET ASSETS | ||||||||
Beginning of Period | 166,828,671 | 138,722,618 | ||||||
End of Period | $ | 188,189,138 | $ | 166,828,671 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 2,000,000 | 3,900,000 | ||||||
Shares Redeemed | (1,100,000 | ) | (3,000,000 | ) | ||||
Net increase in shares of beneficial interest outstanding | 900,000 | 900,000 |
See accompanying notes to financial statements.
68
Inspire 100 ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Six Months Ended | ||||||||
May 31, 2021 | Year Ended | |||||||
(Unaudited) | November 30, 2020 | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 1,182,208 | $ | 1,325,624 | ||||
Net realized gain on investments | 2,700,339 | 6,504,786 | ||||||
Net change in unrealized appreciation on investments | 27,568,268 | 16,624,890 | ||||||
Net increase in net assets resulting from operations | 31,450,815 | 24,455,300 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid: | (1,917,030 | ) | (1,183,515 | ) | ||||
Net decrease in net assets resulting from distributions to shareholders | (1,917,030 | ) | (1,183,515 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 66,677,829 | 56,434,516 | ||||||
Cost of shares redeemed | (7,638,411 | ) | (23,372,072 | ) | ||||
Net increase in net assets resulting from shares of beneficial interest | 59,039,418 | 33,062,444 | ||||||
TOTAL INCREASE IN NET ASSETS | 88,573,203 | 56,334,229 | ||||||
NET ASSETS | ||||||||
Beginning of Period | 149,320,482 | 92,986,253 | ||||||
End of Period | $ | 237,893,685 | $ | 149,320,482 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 1,750,000 | 1,850,000 | ||||||
Shares Redeemed | (200,000 | ) | (850,000 | ) | ||||
Net increase in shares of beneficial interest outstanding | 1,550,000 | 1,000,000 | ||||||
See accompanying notes to financial statements.
69
Inspire International ESG ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Six Months Ended | ||||||||
May 31, 2021 | Year Ended | |||||||
(Unaudited) | November 30, 2020 (a) | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 1,311,513 | $ | 653,036 | ||||
Net realized gain (loss) on investments and foreign currency transactions | 4,054,878 | (529,258 | ) | |||||
Net change in unrealized appreciation on investments and foreign currency translations | 12,133,846 | 10,872,495 | ||||||
Net increase in net assets resulting from operations | 17,500,237 | 10,996,273 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid: | (658,895 | ) | (578,626 | ) | ||||
Net decrease in net assets resulting from distributions to shareholders | (658,895 | ) | (578,626 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 24,958,265 | 58,022,635 | ||||||
Cost of shares redeemed | (10,697,927 | ) | (2,468,535 | ) | ||||
Net increase in net assets resulting from shares of beneficial interest | 14,260,338 | 55,554,100 | ||||||
TOTAL INCREASE IN NET ASSETS | 31,101,680 | 65,971,747 | ||||||
NET ASSETS | ||||||||
Beginning of Period | 77,901,795 | 11,930,048 | ||||||
End of Period | $ | 109,003,475 | $ | 77,901,795 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 750,000 | 2,300,000 | ||||||
Shares Redeemed | (350,000 | ) | (100,000 | ) | ||||
Net increase in shares of beneficial interest outstanding | 400,000 | 2,200,000 |
(a) | The Inspire International ESG ETF commenced operations on September 30, 2019. |
See accompanying notes to financial statements.
70
Inspire Tactical Balanced ESG ETF |
STATEMENTS OF CHANGES IN NET ASSETS |
Six Months Ended | ||||||||
May 31, 2021 | Period Ended | |||||||
(Unaudited) | November 30, 2020 (a) | |||||||
FROM OPERATIONS | ||||||||
Net investment income | $ | 437,440 | $ | 202,473 | ||||
Net realized gain on investments | 52,343 | 975,245 | ||||||
Net change in unrealized appreciation on investments | 9,807,928 | 1,826,279 | ||||||
Net increase in net assets resulting from operations | 10,297,711 | 3,003,997 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Total distributions paid: | (3,312,815 | ) | (88,835 | ) | ||||
Net decrease in net assets resulting from distributions to shareholders | (3,312,815 | ) | (88,835 | ) | ||||
FROM SHARES OF BENEFICIAL INTEREST | ||||||||
Proceeds from shares sold | 15,823,255 | 91,217,214 | ||||||
Cost of shares redeemed | (2,050,102 | ) | (22,580,078 | ) | ||||
Net increase in net assets resulting from shares of beneficial interest | 13,773,153 | 68,637,136 | ||||||
TOTAL INCREASE IN NET ASSETS | 20,758,049 | 71,552,298 | ||||||
NET ASSETS | ||||||||
Beginning of Period | 71,552,298 | — | ||||||
End of Period | $ | 92,310,347 | $ | 71,552,298 | ||||
SHARE ACTIVITY | ||||||||
Shares Sold | 600,000 | 3,625,000 | ||||||
Shares Redeemed | (75,000 | ) | (900,000 | ) | ||||
Net increase in shares of beneficial interest outstanding | 525,000 | 2,725,000 |
(a) | The Inspire Tactical Balanced ESG ETF commenced operations on July 15, 2020. |
See accompanying notes to financial statements.
71
Inspire Faithward Mid Cap Momentum ESG ETF |
STATEMENT OF CHANGES IN NET ASSETS |
Period Ended | ||||
May 31, 2021 (a) | ||||
(Unaudited) | ||||
FROM OPERATIONS | ||||
Net investment income | $ | 2,666 | ||
Net realized gain on investments | 774,944 | |||
Net change in unrealized appreciation on investments | 2,793,840 | |||
Net increase in net assets resulting from operations | 3,571,450 | |||
FROM SHARES OF BENEFICIAL INTEREST | ||||
Proceeds from shares sold | 42,180,470 | |||
Cost of shares redeemed | (3,032,699 | ) | ||
Net increase in net assets resulting from shares of beneficial interest | 39,147,771 | |||
TOTAL INCREASE IN NET ASSETS | 42,719,221 | |||
NET ASSETS | ||||
Beginning of Period | — | |||
End of Period | $ | 42,719,221 | ||
SHARE ACTIVITY | ||||
Shares Sold | 1,550,000 | |||
Shares Redeemed | (100,000 | ) | ||
Net increase in shares of beneficial interest outstanding | 1,450,000 |
(a) | The Inspire Faithward Mid Cap Momentum ESG ETF commenced operations on December 7, 2020. |
See accompanying notes to financial statements.
72
Inspire Faithward Large Cap Momentum ESG ETF |
STATEMENT OF CHANGES IN NET ASSETS |
Period Ended | ||||
May 31, 2021 (a) | ||||
(Unaudited) | ||||
FROM OPERATIONS | ||||
Net investment loss | $ | (93,340 | ) | |
Net realized loss on investments | (685,169 | ) | ||
Net change in unrealized appreciation on investments | 1,620,408 | |||
Net increase in net assets resulting from operations | 841,899 | |||
FROM SHARES OF BENEFICIAL INTEREST | ||||
Proceeds from shares sold | 29,432,052 | |||
Cost of shares redeemed | (1,277,965 | ) | ||
Net increase in net assets resulting from shares of beneficial interest | 28,154,087 | |||
TOTAL INCREASE IN NET ASSETS | 28,995,986 | |||
NET ASSETS | ||||
Beginning of Period | — | |||
End of Period | $ | 28,995,986 | ||
SHARE ACTIVITY | ||||
Shares Sold | 1,150,000 | |||
Shares Redeemed | (50,000 | ) | ||
Net increase in shares of beneficial interest outstanding | 1,100,000 |
(a) | The Inspire Faithward Large Cap Momentum ESG ETF commenced operations on December 7, 2020. |
See accompanying notes to financial statements.
73
Inspire Global Hope ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period
Six Months Ended | ||||||||||||||||||||
May 31, 2021 | Year Ended | Year Ended | Year Ended | Period Ended | ||||||||||||||||
(Unaudited) | November 30, 2020 | November 30, 2019 | November 30, 2018 | November 30, 2017 (1) | ||||||||||||||||
Net asset value, beginning of period | $ | 32.12 | $ | 29.21 | $ | 26.20 | $ | 27.86 | $ | 25.00 | ||||||||||
Activity from investment operations: | ||||||||||||||||||||
Net investment income (2) | 0.49 | 0.50 | 0.67 | 0.48 | 0.36 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 6.86 | 2.96 | 3.08 | (1.49 | ) | 2.78 | ||||||||||||||
Total from investment operations | 7.35 | 3.46 | 3.75 | (1.01 | ) | 3.14 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.26 | ) | (0.52 | ) | (0.58 | ) | (0.49 | ) | (0.28 | ) | ||||||||||
Net realized gains | — | (0.03 | ) | (0.16 | ) | (0.16 | ) | — | ||||||||||||
Total distributions | (0.26 | ) | (0.55 | ) | (0.74 | ) | (0.65 | ) | (0.28 | ) | ||||||||||
Net asset value, end of period | $ | 39.21 | $ | 32.12 | $ | 29.21 | $ | 26.20 | $ | 27.86 | ||||||||||
Total return (6) | 23.00 | % (4) | 12.35 | % | 14.60 | % | (3.74 | )% | 12.63 | % (4) | ||||||||||
Net assets, at end of period (000s) | $ | 141,145 | $ | 120,453 | $ | 160,673 | $ | 87,770 | $ | 52,929 | ||||||||||
Ratio of gross expenses to average net assets (3) | 0.51 | % | 0.61 | % | 0.52 | % (8) | 0.62 | % | 0.75 | % | ||||||||||
Ratio of net expenses to average net assets (3) | 0.51 | % | 0.61 | % | 0.54 | % (7) | 0.62 | % | 0.65 | % | ||||||||||
Ratio of net investment income to average net assets (3) | 2.73 | % | 1.82 | % | 2.42 | % | 1.71 | % | 1.80 | % | ||||||||||
Portfolio Turnover Rate (5) | 11 | % (4) | 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.
74
Inspire Small/Mid Cap Impact ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period
Six Months Ended | ||||||||||||||||||||
May 31, 2021 | Year Ended | Year Ended | Year Ended | Period Ended | ||||||||||||||||
(Unaudited) | November 30, 2020 | November 30, 2019 | November 30, 2018 | November 30, 2017 (1) | ||||||||||||||||
Net asset value, beginning of period | $ | 27.74 | $ | 27.56 | $ | 26.73 | $ | 26.82 | $ | 25.00 | ||||||||||
Activity from investment operations: | ||||||||||||||||||||
Net investment income (2) | 0.17 | 0.37 | 0.32 | 0.30 | 0.20 | |||||||||||||||
Net realized and unrealized gain on investments | 9.26 | 0.13 | (7) | 1.29 | 0.20 | (7) | 1.73 | |||||||||||||
Total from investment operations | 9.43 | 0.50 | 1.61 | 0.50 | 1.93 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.13 | ) | (0.31 | ) | (0.22 | ) | (0.21 | ) | (0.11 | ) | ||||||||||
Net realized gains | — | (0.01 | ) | (0.56 | ) | (0.38 | ) | — | ||||||||||||
Total distributions | (0.13 | ) | (0.32 | ) | (0.78 | ) | (0.59 | ) | (0.11 | ) | ||||||||||
Net asset value, end of period | $ | 37.04 | $ | 27.74 | $ | 27.56 | $ | 26.73 | $ | 26.82 | ||||||||||
Total return (6) | 34.02 | % (4) | 2.12 | % | 6.42 | % | 1.89 | % | 7.75 | % (4) | ||||||||||
Net assets, at end of period (000s) | $ | 118,535 | $ | 85,988 | $ | 99,226 | $ | 50,788 | $ | 29,499 | ||||||||||
Ratio of gross expenses to average net assets (3) | 0.50 | % | 0.57 | % (9) | 0.64 | % | 0.71 | % | 0.94 | % | ||||||||||
Ratio of net expenses to average net assets (3) | 0.59 | % | 0.60 | % (8) | 0.60 | % | 0.62 | % | 0.65 | % | ||||||||||
Ratio of net investment income to average net assets (3) | 1.02 | % | 1.53 | % | 1.24 | % | 1.07 | % | 1.06 | % | ||||||||||
Portfolio Turnover Rate (5) | 88 | % (4) | 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.
75
Inspire Corporate Bond Impact ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period
Six Months Ended | ||||||||||||||||||||
May 31, 2021 | Year Ended | Year Ended | Year Ended | Period Ended | ||||||||||||||||
(Unaudited) | November 30, 2020 | November 30, 2019 | November 30, 2018 | November 30, 2017 (1) | ||||||||||||||||
Net asset value, beginning of period | $ | 26.48 | $ | 25.69 | $ | 24.18 | $ | 24.95 | $ | 25.00 | ||||||||||
Activity from investment operations: | ||||||||||||||||||||
Net investment income (2) | 0.15 | 0.45 | 0.64 | 0.56 | 0.18 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.33 | ) | 0.86 | 1.49 | (0.81 | ) | (0.09 | ) | ||||||||||||
Total from investment operations | (0.18 | ) | 1.31 | 2.13 | (0.25 | ) | 0.09 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.16 | ) | (0.44 | ) | (0.62 | ) | (0.52 | ) | (0.14 | ) | ||||||||||
Net realized gains | — | (0.08 | ) | — | (0.00 | ) (7) | — | |||||||||||||
Total distributions | (0.16 | ) | (0.52 | ) | (0.62 | ) | (0.52 | ) | (0.14 | ) | ||||||||||
Net asset value, end of period | $ | 26.14 | $ | 26.48 | $ | 25.69 | $ | 24.18 | $ | 24.95 | ||||||||||
Total return (6) | (0.71 | )% (4) | 5.16 | % | 8.91 | % | (0.99 | )% | 0.37 | % (4) | ||||||||||
Net assets, at end of period (000s) | $ | 188,189 | $ | 166,829 | $ | 138,723 | $ | 58,031 | $ | 22,453 | ||||||||||
Ratio of gross expenses to average net assets (3) | 0.45 | % | 0.49 | % | 0.50 | % (9) | 0.68 | % | 1.51 | % | ||||||||||
Ratio of net expenses to average net assets (3) | 0.45 | % | 0.49 | % | 0.58 | % (8) | 0.62 | % | 0.65 | % | ||||||||||
Ratio of net investment income to average net assets (3) | 1.11 | % | 1.75 | % | 2.52 | % | 2.27 | % | 1.81 | % | ||||||||||
Portfolio Turnover Rate (5) | 17 | % (4) | 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.
76
Inspire 100 ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period
Six Months Ended | ||||||||||||||||||||
May 31, 2021 | Year Ended | Year Ended | Year Ended | Period Ended | ||||||||||||||||
(Unaudited) | November 30, 2020 | November 30, 2019 | November 30, 2018 | November 30, 2017 (1) | ||||||||||||||||
Net asset value, beginning of period | $ | 35.98 | $ | 29.52 | $ | 26.06 | $ | 25.69 | $ | 25.00 | ||||||||||
Activity from investment operations: | ||||||||||||||||||||
Net investment income (2) | 0.24 | 0.41 | 0.43 | 0.61 | 0.05 | |||||||||||||||
Net realized and unrealized gain on investments | 5.95 | 6.43 | 3.35 | 0.19 | (7) | 0.64 | ||||||||||||||
Total from investment operations | 6.19 | 6.84 | 3.78 | 0.80 | 0.69 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.23 | ) | (0.38 | ) | (0.31 | ) | (0.42 | ) | — | |||||||||||
Net realized gains | (0.20 | ) | — | (0.01 | ) | — | — | |||||||||||||
Return of capital | — | — | — | (0.01 | ) | — | ||||||||||||||
Total distributions | (0.43 | ) | (0.38 | ) | (0.32 | ) | (0.43 | ) | — | |||||||||||
Net asset value, end of period | $ | 41.74 | $ | 35.98 | $ | 29.52 | $ | 26.06 | $ | 25.69 | ||||||||||
Total return (6) | 17.37 | % (4) | 23.50 | % | 14.64 | % | 3.09 | % | 2.76 | % (4) | ||||||||||
Net assets, at end of period (000s) | $ | 237,894 | $ | 149,320 | $ | 92,986 | $ | 39,085 | $ | 6,423 | ||||||||||
Ratio of gross expenses to average net assets (3) | 0.43 | % | 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 | % | 0.35 | % | ||||||||||
Ratio of net investment income to average net assets (3) | 1.25 | % | 1.31 | % | 1.59 | % | 2.27 | % | 2.41 | % | ||||||||||
Portfolio Turnover Rate (5) | 4 | % (4) | 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.
77
Inspire International ESG ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period
Six Months Ended | ||||||||||||
May 31, 2021 | Year Eded | Period Ended | ||||||||||
(Unaudited) | November 30, 2020 | November 30, 2019 (1) | ||||||||||
Net asset value, beginning of period | $ | 29.40 | $ | 26.51 | $ | 25.00 | ||||||
Activity from investment operations: | ||||||||||||
Net investment income (loss) (2) | 0.51 | 0.36 | (0.05 | ) | ||||||||
Net realized and unrealized gain on investments | 6.09 | 2.81 | 1.56 | |||||||||
Total from investment operations | 6.60 | 3.17 | 1.51 | |||||||||
Less distributions from: | ||||||||||||
Net investment income | (0.26 | ) | (0.28 | ) | — | |||||||
Total distributions | (0.26 | ) | (0.28 | ) | — | |||||||
Net asset value, end of period | $ | 35.74 | $ | 29.40 | $ | 26.51 | ||||||
Total return (6) | 22.55 | % (4) | 12.29 | % | 6.04 | % (4) | ||||||
Net assets, at end of period (000s) | $ | 109,003 | $ | 77,902 | $ | 11,930 | ||||||
Ratio of net expenses to average net assets (3) | 0.71 | % | 0.94 | % | 2.44 | % | ||||||
Ratio of net investment income (loss) to average net assets (3) | 3.06 | % | 1.44 | % | (1.16 | )% | ||||||
Portfolio Turnover Rate(5) | 12 | % (4) | 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 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. |
See accompanying notes to financial statements.
78
Inspire Tactical Balanced ESG ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout The Period
Six Months Ended | ||||||||
May 31, 2021 | Period Ended | |||||||
(Unaudited) | November 30, 2020 (1) | |||||||
Net asset value, beginning of period | $ | 26.26 | $ | 25.00 | ||||
Activity from investment operations: | ||||||||
Net investment income (2) | 0.14 | 0.08 | ||||||
Net realized and unrealized gain on investments | 3.21 | 1.21 | ||||||
Total from investment operations | 3.35 | 1.29 | ||||||
Less distributions from: | ||||||||
Net investment income | (0.16 | ) | (0.03 | ) | ||||
Net realized gains | (1.05 | ) | — | |||||
Total distributions | (1.21 | ) | (0.03 | ) | ||||
Net asset value, end of period | $ | 28.40 | $ | 26.26 | ||||
Total return (4)(6) | 13.35 | % | 5.18 | % | ||||
Net assets, at end of period (000s) | $ | 92,310 | $ | 71,552 | ||||
Ratio of net expenses to average net assets (3) | 0.71 | % | 0.80 | % | ||||
Ratio of net investment income to average net assets (3) | 1.08 | % | 0.81 | % | ||||
Portfolio Turnover Rate (4)(5) | 39 | % | 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 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. |
See accompanying notes to financial statements.
79
Inspire Faithward Mid Cap Momentum ESG ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout The Period
Period Ended | ||||
May 31, 2021 (1) | ||||
(Unaudited) | ||||
Net asset value, beginning of period | $ | 25.00 | ||
Activity from investment operations: | ||||
Net investment income (2) | 0.00 | (7) | ||
Net realized and unrealized gain on investments | 4.46 | |||
Total from investment operations | 4.46 | |||
Net asset value, end of period | $ | 29.46 | ||
Total return (4)(6) | 17.84 | % | ||
Net assets, at end of period (000s) | $ | 42,719 | ||
Ratio of net expenses to average net assets (3) | 1.09 | % | ||
Ratio of net investment income to average net assets (3) | 0.02 | % | ||
Portfolio Turnover Rate (4)(5) | 235 | % |
(1) | The Inspire Faithward Mid Cap Momentum ESG ETF commenced operations on December 7, 2020. |
(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. |
See accompanying notes to financial statements.
80
Inspire Faithward Large Cap Momentum ESG ETF |
FINANCIAL HIGHLIGHTS |
Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout The Period
Period Ended | ||||
May 31, 2021 (1) | ||||
(Unaudited) | ||||
Net asset value, beginning of period | $ | 25.00 | ||
Activity from investment operations: | ||||
Net investment loss (2) | (0.09 | ) | ||
Net realized and unrealized gain on investments | 1.45 | |||
Total from investment operations | 1.36 | |||
Net asset value, end of period | $ | 26.36 | ||
Total return (4)(6) | 5.44 | % | ||
Net assets, at end of period (000s) | $ | 28,996 | ||
Ratio of net expenses to average net assets (3) | 1.26 | % | ||
Ratio of net investment loss to average net assets (3) | (0.75 | )% | ||
Portfolio Turnover Rate (4)(5) | 191 | % |
(1) | The Inspire Faithward Large Cap Momentum ESG ETF commenced operations on December 7, 2020. |
(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. |
See accompanying notes to financial statements.
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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”), Inspire Tactical Balanced ESG ETF (“RISN”), Inspire Faithward Mid Cap Momentum ESG ETF (“GLRY”), and Faithward Large Cap Momentum ESG ETF (“FEVR”)( (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. GLRY’s investment objective seeks to maximize growth and outperform the results (before fees and expenses) of the broader U.S. midcap stock market. FEVR’s investment objective seeks to maximize growth with lower volatility than the broader U.S. large cap stock market. 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. GLRY and FEVR commenced operations on December 7, 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
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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 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 applicable Fund’s holdings; (iv) the discount from market value
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of unrestricted securities of the same class at the time of purchase and subsequent thereto; (v) information as to any transactions or offers with respect to the security; (vi) the nature and duration of restrictions on disposition of the security and the existence of any registration rights; (vii) how the yield of the security compares to similar securities of companies of similar or equal creditworthiness; (viii) the level of recent trades of similar or comparable securities; (ix) the liquidity characteristics of the security; (x) current market conditions; and (xi) the market value of any securities into which the security is convertible or exchangeable.
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
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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 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 May 31, 2021 for the Funds’ assets measured at value:
BLES | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 137,719,490 | $ | — | $ | — | $ | 137,719,490 | ||||||||
Money Market Fund | 3,270,309 | — | — | 3,270,309 | ||||||||||||
Stock Warrants | 31,081 | — | — | 31,081 | ||||||||||||
Total | $ | 141,020,880 | $ | — | $ | — | $ | 141,020,880 | ||||||||
ISMD | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 117,522,227 | $ | — | $ | — | $ | 117,522,227 | ||||||||
Money Market Fund | 13,564,191 | — | — | 13,564,191 | ||||||||||||
Total | $ | 131,086,418 | $ | — | $ | — | $ | 131,086,418 | ||||||||
IBD | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Corporate Bonds | $ | — | $ | 183,880,539 | $ | — | $ | 183,880,539 | ||||||||
Total | $ | — | $ | 183,880,539 | $ | — | $ | 183,880,539 |
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BIBL | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 236,643,466 | $ | — | $ | — | $ | 236,643,466 | ||||||||
Money Market Fund | 1,909,444 | — | — | 1,909,444 | ||||||||||||
Total | $ | 238,552,910 | $ | — | $ | — | $ | 238,552,910 | ||||||||
WWJD | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 106,632,474 | $ | — | $ | — | $ | 106,632,474 | ||||||||
Money Market Fund | 8,696,027 | — | — | 8,696,027 | ||||||||||||
Stock Warrant | 8,107 | — | — | 8,107 | ||||||||||||
Total | $ | 115,336,608 | $ | — | $ | — | $ | 115,336,608 | ||||||||
RISN | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Closed End Fund | $ | 4,652,393 | $ | — | $ | — | $ | 4,652,393 | ||||||||
Common Stocks | 73,243,904 | — | — | 73,243,904 | ||||||||||||
Exchange Traded Fund | 13,517,256 | — | — | 13,517,256 | ||||||||||||
Money Market Fund | 416,687 | — | — | 416,687 | ||||||||||||
Total | $ | 91,830,240 | $ | — | $ | — | $ | 91,830,240 | ||||||||
GLRY | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 42,376,553 | $ | — | $ | — | $ | 42,376,553 | ||||||||
Total | $ | 42,376,553 | $ | — | $ | — | $ | 42,376,553 | ||||||||
FEVR | ||||||||||||||||
Assets * | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 28,719,152 | $ | — | $ | — | $ | 28,719,152 | ||||||||
Total | $ | 28,719,152 | $ | — | $ | — | $ | 28,719,152 |
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, GLRY, FEVR 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,
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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, 2021 year-end tax return. Each Fund identified its major tax jurisdictions as U.S. federal, Ohio 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.
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
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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 six months or period ended May 31, 2021, 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 | $ | 13,420,968 | $ | 14,761,610 | ||||
ISMD | $ | 90,790,242 | $ | 91,208,409 | ||||
IBD | $ | 31,788,879 | $ | 27,455,363 | ||||
BIBL | $ | 8,450,871 | $ | 8,174,196 | ||||
WWJD | $ | 9,840,286 | $ | 10,555,266 | ||||
RISN | $ | 30,799,249 | $ | 32,393,584 | ||||
GLRY | $ | 82,317,699 | $ | 81,940,627 | ||||
FEVR | $ | 50,219,999 | $ | 50,234,871 |
For the six months or period ended May 31, 2021, cost of purchases and proceeds from sales of portfolio securities for in-kind transactions for the Funds were as follows:
Purchases | Sales | |||||||
BLES | $ | 10,127,514 | $ | 14,006,810 | ||||
ISMD | $ | 10,310,687 | $ | 6,750,995 | ||||
IBD | $ | 52,684,496 | $ | 27,854,566 | ||||
BIBL | $ | 65,997,512 | $ | 7,556,961 | ||||
WWJD | $ | 24,314,495 | $ | 10,679,044 | ||||
RISN | $ | 14,429,955 | $ | 2,028,681 | ||||
GLRY | $ | 41,438,719 | $ | 3,008,010 | ||||
FEVR | $ | 29,071,546 | $ | 1,272,742 |
4. | INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PARTIES |
The business activities of the Funds are overseen by the Board. CWM Advisors, LLC dba Inspire (the “Adviser”) serves as the Funds’ investment adviser pursuant to an Investment Advisory Agreement with the Trust (the “Advisory Agreement”). The Adviser has engaged SevenOneSeven Capital Management, LTD as the primary sub-adviser (the “Sub-Adviser”), to manage the assets of GLRY and FEVR. 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 Foreside Financial Services, LLC (the “Distributor”) to serve as the principal underwriter and distributor for the Funds.
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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, an annual rate of 0.50% for RISN and an annual rate of 0.65% for GLRY and FEVR. For the six months or period ended May 31, 2021, the Adviser earned $ 186,257, $159,966, $250,606, $283,380, $191,536, $201,961, $106,942 and $80,880 in advisory fees for BLES, ISMD, IBD, BIBL, WWJD, RISN, GLRY and FEVR respectively.
Pursuant to a written contract (the “Waiver Agreement”), the Adviser has agreed for BLES, ISMD, BIBL, and WWJD at least until March 31, 2022, 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 and effective April 1, 2021, 0.52% and 0.80% for BLES and WWJD, respectively. IBD, RISN, GLRY and FEVR currently do not have a Waiver Agreement in place.
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 six months ended May 31, 2021, the Adviser waived fees and/or reimbursed expenses in the amount of $72,754 for BIBL pursuant to the Waiver Agreement. For the six months ended May 31, 2021, the Adviser recaptured $47,300 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 | ||||||||||
BIBL | $ | 117,184 | $ | 131,308 | $ | 72,754 |
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
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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.
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, GLRY and FEVR. 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 their ongoing shareholders for brokerage and market impact expenses relating to Creation Unit transactions (“Variable Charge,” and together with the Fixed Fee, the “Transaction Fees”).
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The Transaction Fees for the Funds are listed in the table below:
Fee for In-Kind and Cash | Maximum Additional Variable | |||||||
ETFs | Purchases | 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% | ||||||
GLRY | $250 | 0.00% | ||||||
FEVR | $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 WWJD, which have been passed through to the Fund’s underlying shareholders and are deemed dividends for tax purposes. |
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued) |
May 31, 2021 |
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. WWJD 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 | — | — | — | — |
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 |
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued) |
May 31, 2021 |
7. | AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION – TAX BASIS |
Gross | Gross | Net Unrealized | ||||||||||||||
Unrealized | Unrealized | Appreciation/ | ||||||||||||||
Portfolio | Tax Cost | Appreciation | Depreciation | (Depreciation) | ||||||||||||
BLES | $ | 107,120,257 | $ | 36,811,571 | $ | (2,910,948 | ) | $ | 33,900,623 | |||||||
ISMD | 108,559,723 | 23,824,858 | (1,298,163 | ) | 22,526,695 | |||||||||||
IBD | 182,948,874 | 2,330,141 | (1,398,476 | ) | 931,665 | |||||||||||
BIBL | 184,202,544 | 54,803,103 | (452,737 | ) | 54,350,366 | |||||||||||
WWJD | 91,622,733 | 24,770,423 | (1,056,548 | ) | 23,713,875 | |||||||||||
RISN | 81,079,568 | 12,168,732 | (1,418,060 | ) | 10,750,672 | |||||||||||
GLRY | 39,582,713 | 3,131,557 | (337,717 | ) | 2,793,840 | |||||||||||
FEVR | 27,098,744 | 1,905,312 | (284,904 | ) | 1,620,408 |
8. | SECURITIES LENDING |
Each Fund may lend up to 33 1/3% of the value of the securities in its 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.
As of May 31, 2021, 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 | $ | 3,174,083 | $ | 3,270,309 | ||||
ISMD | 13,281,883 | 13,564,191 | ||||||
BIBL | 1,870,172 | 1,909,444 | ||||||
WWJD | 8,411,860 | 8,696,027 | ||||||
RISN | 408,444 | 416,687 |
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The Inspire ETFs |
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued) |
May 31, 2021 |
The following table is a summary of the Funds’ securities loaned and related collateral, which are subject to a netting agreement as of May 31, 2021:
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 Securities Lending | $ | 3,270,309 | $ | — | $ | 3,270,309 | $ | — | $ | 3,270,309 | $ | — | ||||||||||||
ISMD Securities Lending | $ | 13,564,191 | $ | — | $ | 13,564,191 | $ | — | $ | 13,564,191 | $ | — | ||||||||||||
BIBL Securities Lending | $ | 1,909,444 | $ | — | $ | 1,909,444 | $ | — | $ | 1,909,444 | $ | — | ||||||||||||
WWJD Securities Lending | $ | 8,696,027 | $ | — | $ | 8,696,027 | $ | — | $ | 8,696,027 | $ | — | ||||||||||||
RISN Securities Lending | $ | 416,687 | $ | — | $ | 416,687 | $ | — | $ | 416,687 | $ | — |
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 May 31, 2021, 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.
The Board of Trustees declared the following distributions after May 31, 2021:
Dividend Per Share | Record Date | Payable Date | |||||||
BLES | $ | 0.2231 | 6/28/2021 | 7/6/2021 | |||||
ISMD | $ | 0.0894 | 6/28/2021 | 7/6/2021 | |||||
IBD | $ | 0.0226 | 6/28/2021 | 7/6/2021 | |||||
BIBL | $ | 0.1001 | 6/28/2021 | 7/6/2021 | |||||
WWJD | $ | 0.3033 | 6/28/2021 | 7/6/2021 | |||||
RISN | $ | 0.0489 | 6/28/2021 | 7/6/2021 |
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The Inspire ETFs |
EXPENSE EXAMPLES (Unaudited) |
May 31, 2021 |
As a shareholder of one or more 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 December 1, 2020 through May 31, 2021.
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 | 12/1/2020 | 5/31/2021 | 12/1/20 - 5/31/21 | 12/1/20 - 5/31/21 | ||||||
BLES | $ | 1,000.00 | $1,230.00 | $2.84 | 0.51% | |||||
ISMD | $ | 1,000.00 | $1,340.70 | $3.44 | 0.59% | |||||
IBD | $ | 1,000.00 | $992.90 | $2.24 | 0.45% | |||||
BIBL | $ | 1,000.00 | $1,173.70 | $1.90 | 0.35% | |||||
WWJD | $ | 1,000.00 | $1,225.50 | $6.81 | 0.71% | |||||
RISN | $ | 1,000.00 | $1,133.50 | $3.78 | 0.71% | |||||
GLRY *** | $ | 1,000.00 | $1,178.80 | $5.69 | 1.09% | |||||
FEVR *** | $ | 1,000.00 | $1,054.40 | $6.21 | 1.26% |
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The Inspire ETFs |
EXPENSE EXAMPLES (Unaudited)(Continued) |
May 31, 2021 |
Beginning | Ending Account | Expenses Paid | Expenses Paid | |||||||
Hypothetical | Account Value | Value | During Period* | During Period** | ||||||
(5% return before expenses) | 12/1/2020 | 5/31/2021 | 12/1/20 - 5/31/21 | 12/1/20 - 5/31/21 | ||||||
BLES | $ | 1,000.00 | $1,022.39 | $2.57 | 0.51% | |||||
ISMD | $ | 1,000.00 | $1,021.99 | $2.97 | 0.59% | |||||
IBD | $ | 1,000.00 | $1,022.69 | $2.27 | 0.45% | |||||
BIBL | $ | 1,000.00 | $1,023.19 | $1.77 | 0.35% | |||||
WWJD | $ | 1,000.00 | $1,021.46 | $6.12 | 0.71% | |||||
RISN | $ | 1,000.00 | $1,021.39 | $3.58 | 0.71% | |||||
GLRY *** | $ | 1,000.00 | $1,018.75 | $5.28 | 1.09% | |||||
FEVR *** | $ | 1,000.00 | $1,017.93 | $6.10 | 1.26% |
* | 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 (182) divided by the number of days in the fiscal year (365). “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 182/365 (to reflect the full half-year period). |
** | Annualized. |
*** | GLRY and FEVR commenced operations on December 7, 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 (175) divided by the number of days in the fiscal year (365). |
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The Inspire ETFs |
SUPPLEMENTAL INFORMATION (Unaudited) |
May 31, 2021 |
Renewal of the Investment Advisory Agreement with 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 January 20-21, 2021, 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 (the “1940 Act”), discussed the renewal of an investment advisory agreement (the “Inspire Advisory Agreement”) between CWM Advisors, LLC (dba Inspire) (“Inspire”) and the Trust, with respect to Inspire 100 ETF (“Inspire 100”), Inspire Corporate Bond ETF (“Inspire Corporate Bond”), Inspire Global Hope ETF (“Inspire Global Hope”), Inspire International ESG ETF (“Inspire International”), and Inspire Small/Mid Cap Impact ETF (“Inspire Small/Mid Cap”) (together “the Inspire ETFs”). In considering the renewal 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 renewal 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 on behalf of each Inspire ETF 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 renewal of the Inspire Advisory Agreement.
Nature, Extent and Quality of Services. The Trustees noted the investment experience and background of the key investment personnel responsible for servicing the Inspire ETFs. The Trustees discussed Inspire’s adherence to managing the Inspire ETFs to track their respective indexes, each of which utilizes the Inspire Impact Score© investment methodology. The Trustees reviewed Inspire’s practices for monitoring compliance as set forth in the investment adviser questionnaire response. The Trust CCO noted the adequacy of Inspire’s compliance program. The Trustees observed that Inspire selected broker/dealers on the basis of best execution. The Trustees noted that Inspire monitors daily trading on the listing exchange and uses a third-party data and analysis provider. After further discussion, the Trustees concluded that Inspire continues to have the ability to provide a level of service consistent with their expectations.
Performance. The Trustees discussed the reports prepared by Broadridge and reviewed the performance of each Inspire ETF as compared to the respective Inspire index it seeks to track and secondarily compared to its Broadridge selected peer group and Morningstar category for the one year, three year and since inception periods. The Trustees considered each ETF’s respective investment objective and each of the Inspire ETF’s Broadridge selected peer group and Morningstar category, noting the shortage of direct comparison because none were passively managed biblically responsible ETFs:
Inspire 100: The Trustees considered Inspire 100’s performance, noting that Inspire 100 seeks to track its own Inspire benchmark index. The Trustees evaluated the correlation and tracking error between the Inspire benchmark index and Inspire 100’s performance. Based on its review, the Trustees found that the nature and extent of services provided to Inspire 100 under the Inspire Advisory Agreement
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SUPPLEMENTAL INFORMATION (Unaudited)(Continued) |
May 31, 2021 |
was appropriate and that the quality was satisfactory. The Trustees noted that Inspire 100’s performance was lower than the Index Inspire 100 tracks for both periods, noting that unlike Inspire 100, the performance of an unmanaged index does not reflect deductions for transaction costs, taxes, management fees or other expenses. The Trustees concluded Inspire 100’s performance was satisfactory.
Inspire Corporate Bond: The Trustees considered Inspire Corporate Bond’s performance noting that Inspire Corporate Bond seeks to track its own Inspire benchmark index. The Trustees evaluated the correlation and tracking error between the Inspire benchmark index and Inspire Corporate Bond’s performance. Based on its review, the Trustees found that the nature and extent of services provided to Inspire Corporate Bond under the Inspire Advisory Agreement was appropriate and that the quality was satisfactory. The Trustees noted that Inspire Corporate Bond’s performance was lower than the Index Inspire Corporate Bond tracks for both periods, noting that unlike Inspire Corporate Bond, the performance of the unmanaged Index does not reflect deductions for transaction costs, taxes, management fees or other expenses. The Trustees concluded Inspire Corporate Bond’s performance was satisfactory.
Inspire Global Hope: The Trustees considered Inspire Global Hope’s performance noting that Inspire Global Hope seeks to track its own Inspire benchmark index. The Trustees evaluated the correlation and tracking error between the Inspire benchmark index and Inspire Global Hope’s performance. Based on its review, the Trustees found that the nature and extent of services provided to Inspire Global Hope under the Inspire Advisory Agreement was appropriate and that the quality was satisfactory. The Trustees noted Inspire Global Hope’s performance was higher than the Inspire benchmark index Inspire Global Hope tracks for the one-year period and lower than the Inspire benchmark index for the three -year and since inception periods, noting that unlike Inspire Global Hope, the performance of the unmanaged Index does not reflect deductions for transaction costs, taxes, management fees or other expenses. The Trustees concluded Inspire Global Hope’s performance was satisfactory.
Inspire International: The Trustees considered Inspire International’s performance noting that Inspire International seeks to track its own Inspire benchmark index. The Trustees evaluated the correlation and tracking error between the Inspire benchmark index and Inspire International’s performance. Based on its review, the Trustees found that the nature and extent of services provided to Inspire International under the Inspire Advisory Agreement was appropriate and that the quality was satisfactory. The Trustees noted the Inspire International’s performance was lower than the Inspire benchmark index Inspire International tracks for the one-year period and since inception, noting that unlike Inspire International, the performance of the unmanaged Index does not reflect deductions for transaction costs, taxes, management fees or other expenses. The Trustees concluded Inspire International’s performance was satisfactory.
Inspire Small/Mid Cap: The Trustees considered Inspire Small/Mid Cap’s performance noting that Inspire Small/Mid Cap seeks to track its own Inspire benchmark index. The Trustees evaluated the correlation and tracking error between the Inspire benchmark index and Inspire Small Mid/Cap’s performance. Based on its review, the Trustees found that the nature and extent of services provided to Inspire Small/Mid Cap under the Inspire Advisory Agreement was appropriate and that the quality was satisfactory. The Trustees noted the Inspire Small/Mid Cap’s performance was lower than the
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SUPPLEMENTAL INFORMATION (Unaudited)(Continued) |
May 31, 2021 |
Inspire benchmark index Inspire Small/Mid Cap tracks for the one-year period, three-year period and since inception, noting that unlike Inspire Small/Mid Cap, the performance of the unmanaged Index does not reflect deductions for transaction costs, taxes, management fees or other expenses. The Trustees concluded Inspire Small/Mid Cap’s performance was satisfactory.
Fees and Expenses.
Inspire 100: The Trustees evaluated Inspire 100’s advisory fee, noting that the advisory fee of 0.30% was lower than the Broadridge peer group average and higher than the Morningstar category average. The Trustees discussed Inspire 100’s net expense ratio and noted that it was lower that its Broadridge peer group average and higher with the Morningstar Category Average. The Trustees considered that Inspire had an expense limitation in place with respect to Inspire 100 and is planning on renewing it for an additional year. The Trustees concluded that Inspire 100’s advisory fee was not unreasonable.
Inspire Corporate Bond: The Trustees evaluated Inspire Corporate Bond’s advisory fee, noting that the advisory fee of 0.30% was higher than the Broadridge peer group median and peer group average. They further noted that Inspire Corporate Bond’s advisory fee was higher than the Morningstar category average and median, but within the range of the Morningstar category. The Trustees discussed Inspire Corporate Bond’s net expense ratio and noted that it was higher than its peer group average and peer group median. They further noted that Inspire Corporate Bond’s net expense ratio was higher than its assigned Morningstar category median and average. The Trustees concluded that Inspire Corporate Bond’s advisory fee was not unreasonable.
Inspire Global Hope: The Trustees evaluated Inspire Global Hope’s advisory fee, noting that the advisory fee of 0.30% was lower than the Broadridge peer group average and median and the Morningstar category average and median. The Trustees discussed Inspire Global Hope’s net expense ratio and noted that it was higher than its peer group average. They further noted that Inspire Global Hope’s net expense ratio was higher than its assigned Morningstar category median and average but within the range of the category. The Board further considered Inspire’s assertion that non-advisory fee related expenses were a driver of total operating expenses and that Inspire Global Hope’s advisory fee on an absolute basis was low given the services provided by Inspire. The Trustees concluded that Inspire Global Hopes advisory fee was not unreasonable.
Inspire International: The Trustees evaluated Inspire International’s advisory fee, noting that the advisory fee of 0.45% was higher than the Broadridge peer group average and below the Morningstar category high. The Trustees discussed Inspire International’s net expense ratio and noted that it was higher than its peer group average. They further noted that Inspire International’s net expense ratio was higher than its assigned Morningstar category median and average but within the range of the category. The Trustees considered that Inspire had an expense limitation in place with respect to Inspire International and is planning on renewing it for an additional year. The Trustees concluded that Inspire International’s advisory fee was not unreasonable
Inspire Small/Mid Cap: The Trustees evaluated Inspire Small/Mid Cap’s advisory fee, noting that the advisory fee of 0.30% was lower than the Broadridge peer group median and average, and higher than the Morningstar category average and in line with the Morningstar category median. The Trustees considered that Inspire had an expense limitation in place with respect to Inspire Small/Mid Cap is
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SUPPLEMENTAL INFORMATION (Unaudited)(Continued) |
May 31, 2021 |
planning on renewing it for an additional year. They further noted that Inspire Small/Mid Cap’s net expense ratio was higher that its assigned Morningstar category median and average but within the range of the category. The Trustees concluded that Inspire Small/Mid Cap’s advisory fee was not unreasonable.
Profitability. The Trustees reviewed Inspire’s profitability analysis in connection with the advisory services it provides to each of the Inspire ETFs. The Trustees noted that Inspire was managing Inspire 100 at a loss. The Trustees noted Inspire was operating Inspire Corporate, Inspire Global Hope, Inspire International and Inspire Small/Mid Cap each at a modest profit. The Trustees concluded, therefore, that Inspire’s profitability with respect to each Inspire ETF was not excessive.
Economies of Scale. The Trustees noted that economies of scale had not yet been reached. The Trustees noted that consideration of economies of scale would be revisited as each Inspire ETF’s assets grow significantly.
Conclusion. The Trustees relied upon the advice of 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 such factor. Accordingly, having requested and received such information from Inspire 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 including all of the Independent Trustees, determined that, with respect to the renewal of the Inspire Advisory Agreement, (a) the terms of the Inspire Advisory Agreement were reasonable; (b) the advisory fee paid by each Inspire ETF was not unreasonable; and (c) the profitability of Inspire under the Inspire Advisory Agreement was not excessive with respect to each of the Inspire ETFs and its respective shareholders. In considering the renewal of the Inspire Advisory Agreement, the Trustees did not identify any one factor as all important, but rather considered these factors collectively and determined that approval of the renewal of the Inspire Advisory Agreement was in the best interests of each Inspire ETF and its respective shareholders, as appropriate.
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The Inspire ETFs |
SUPPLEMENTAL INFORMATION (Unaudited)(Continued) |
May 31, 2021 |
Consideration of Investment Advisory Agreement for Inspire (Adviser to the Inspire Faithward ETFs)
In connection with the Meeting of the Board of Trustees (the “Trustees”) of Northern Lights Fund Trust IV (the “Trust”), held on October 13, 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 (the “1940 Act”), discussed the approval of an investment advisory agreement (the “Inspire Advisory Agreement”) between Inspire and the Trust, with respect to Inspire Faithward Large Cap Momentum ESG ETF (“Inspire FMLM”) and Inspire Faithward Mid Cap Momentum ESG ETF (“Inspire FMCM”) (collectively, the “Funds” or the “New Inspire ETFs”). In considering the the approval Inspire Advisory Agreement, the Trustees received materials specifically relating to the Inspire Advisory Agreement.
The Trustees reviewed and discussed the materials about the proposed Inspire Advisory Agreement approval that were provided in advance of the Meeting and deliberated on the approval of the Inspire Advisory Agreement. The members of the Board 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 Board were based on a comprehensive evaluation of all of the information provided and were not the result of any one factor. Moreover, each Board member 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 $780 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; one active managed Biblically Responsible Investing ETF 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 the New Inspire ETFs, the hiring of a sub adviser and their experience with the proposed investment strategies. After further discussion, the Board concluded that the adviser has the ability to provide a level of service consistent with the Board’s expectations.
Performance.
Inspire FMCM. The Trustees recognized that Inspire FMCM has not yet begun operations, and has no prior investment performance.
Inspire FMLM. The Trustees recognized that Inspire FMLM has not yet begun operations, and has no prior investment performance.
Fees and Expenses.
Inspire FMCM. The Board noted that the Inspire FMCM’s proposed advisory fee of 0.65% of its average net daily assets was higher than its Morningstar category average of 0.44% but lower than its Broadridge peer group median and peer group average of 0.69% and 0.75%, respectively. They further noted that the Inspire FMCM’s net expense ratio was higher than its assigned
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SUPPLEMENTAL INFORMATION (Unaudited)(Continued) |
May 31, 2021 |
Morningstar category median and category average but lower than its Broadridge peer group median. After further discussion, the Board concluded that the proposed advisory fee was not unreasonable.
Inspire FLCM. The Board noted that the Inspire FLCM’s proposed advisory fee of 0.65% of its average net daily assets was lower than the Broadridge peer group average of 0.90% and in line with the Morningstar category average of 0.65%. They further noted that the Inspire FLCM’s net expense ratio was higher than its assigned Morningstar category median but lower than its peer group average. After further discussion, the Board concluded that the proposed advisory fee was not unreasonable.
Profitability. The Board reviewed a profitability analysis provided by the adviser and considered whether the level of anticipated profit was reasonable. They noted the adviser anticipated realizing a profit in connection with its relationship with each of the New Inspire ETFs, 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 the New Inspire ETFs. The Board concluded, after further discussion, that excessive profit was not a concern at this time.
Economies of Scale. The Board noted that economies of scale was not an issue at this time as each New Inspire ETF had not yet launched. The Board noted that consideration of economies of scale would be revisited to the extent assets of the New Inspire ETFs grow significantly.
Conclusion. Having requested and received such information from Inspire as the Board believed to be reasonably necessary to evaluate the terms of the Inspire Advisory Agreement, and as assisted by the advice of independent counsel, the Board determined that approval of the Inspire Advisory Agreement is in the best interests of each New Inspire ETF and its future shareholders.
Consideration of Sub-Advisory Agreement between Inspire and SevenOneSeven Capital Management, LTD )(“SOS")
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 sub- advisory agreement between Inspire and SOS (the “Sub-Advisory Agreement”) and the weight to be given to each such factor. The Trustees’ conclusions were based on an 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 conclusions with respect to the Sub-Advisory Agreement.
Nature, Extent & Quality of Services. The Board observed that SOS was formed in 2019. In consideration of the financial condition of SOS, the Trustees noted that Inspire had performed a review and was comfortable with SOS financial condition. The Board noted that SOS will employ a similar investment strategy used in their SMA accounts as Inspire FLCM and Inspire FMCM (the “New Inspire ETFs”). The Board reviewed the presentation materials prepared by SOS describing its investment process. In consideration of the compliance policies and procedures for SOS, the Board noted Inspire’s belief that SOS has the capabilities, resources and personnel necessary to provide sub-advisory services to the Fund in a compliant way. The Board further noted that SOS represented that it had not had any material compliance or litigation issues that are expected to create
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The Inspire ETFs |
SUPPLEMENTAL INFORMATION (Unaudited)(Continued) |
May 31, 2021 |
any material issues in a firm’s ability to operate. The Board concluded that SOS had sufficient quality and depth of personnel, resources, investment methods and compliance policies and procedures essential to performing its duties under the Sub-Advisory Agreement and that the nature, overall quality and extent of investment management services to be provided to the New Inspire ETFs would be satisfactory. The Board concluded that SOS should be able to provide quality services to the New Inspire ETFs.
Performance. As the New Inspire ETFs are new without any operational history, actual performance of either New ETF was not available for the Trustees to consider. However, the Trustees were able to consider the performance of separately managed account portfolios managed by SOS with strategies similar to that of each New Inspire ETF. After further discussion, the Trustees concluded that SOS has the potential to deliver positive returns to shareholders in line with the Trustees’ expectations.
Fees and Expenses. The Board noted the sub-advisory fee payable to SOS for sub-advising each New Inspire ETF. The Trustees discussed the sub-advisory fee relative to the advisory fee noting that SOS will be paid a sub-advisory of 0.35% of each New Inspire ETF’s average net assets and that Inspire, rather than each such New Inspire ETF, would be responsible for the payment of such fee. The Board concluded that the sub-advisory fee payable to SOS was not unreasonable.
Profitability. The Trustees noted that SOS will receive no other compensation from either New Inspire ETF or Inspire except the sub-advisory fee earned pursuant to the Sub-Advisory Agreement and payable by Inspire. The Trustees reviewed a profitability analysis that was provided by SOS. The Board concluded that the sub-advisory fee to be paid under the Sub-Advisory Agreement is reasonable in light of the services to be provided thereunder.
Economies of Scale. The Board noted that economies of scale was not an issue at this time as each New Inspire ETF had not yet launched. The Board noted that consideration of economies of scale would be revisited to the extent assets of the New Inspire ETFs grow significantly.
Conclusion. Having requested and received such information from SOS as the Board believed to be reasonably necessary to evaluate the terms of the Sub -Advisory Agreement, and as assisted by the advice of independent counsel, the Board concluded that the sub-advisory fee structure was not unreasonable and that approval of the Sub-Advisory Agreement was in the best interests of the Trust and the shareholders of the New Inspire ETFs.
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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. |
105
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
The 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 their 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.inspireetf.com.
INVESTMENT ADVISOR |
Inspire (CWM Advisors, LLC) |
3597 E Monarch Sky Lane, |
Suite 330 |
Meridian, ID 83646 |
ADMINISTRATOR |
Gemini Fund Services, LLC |
4221 North 203rd Street, Suite 100 |
Elkhorn, NE 68022-3474 |
INSPIRE-SA21 |
Item 2. Code of Ethics. Not applicable.
Item 3. Audit Committee Financial Expert. Not applicable.
Item 4. Principal Accountant Fees and Services. Not applicable.
Item 5. Audit Committee of Listed Companies. Not applicable to open-end investment companies.
Item 6. 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 8/6/21
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 8/6/21
By (Signature and Title)
/s/ Sam Singh
Sam Singh, Principal Financial Officer/Treasurer
Date 8/6/21