N-CSR
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: 811-07322
The Integrity Funds
(Exact name of registrant as specified in charter)
1 Main Street North, Minot, ND |
| 58703 |
(Address of principal offices) |
| (Zip code) |
Brent Wheeler and/or Kevin Flagstad, PO Box 500, Minot, ND 58702
(Name and address of agent for service)
Registrant’s telephone number, including area code: 701-852-5292
Date of fiscal year end: July 31st
Date of reporting period: July 31, 2020
Item 1. REPORTS TO STOCKHOLDERS.
THE INTEGRITY FUNDS
Integrity Dividend Harvest Fund
Integrity Energized Dividend Fund
Integrity Growth & Income Fund
Integrity High Income Fund
Integrity Mid-North American Resources Fund
Integrity Short Term Government Fund
Annual Report | July 31, 2020
Investment Adviser | Principal Underwriter |
Transfer Agent | Custodian |
Independent Registered Public Accounting Firm Chicago, IL 60606 |
*The Funds are distributed through Integrity Funds Distributor, LLC. Member FINRA
IMPORTANT NOTE: Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Integrity Viking Funds’ (the “Funds”) annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the shareholder reports from the Funds or from your financial intermediary, such as a broker-dealer or bank. Instead, shareholder reports will be available on the Funds’ website (https://www.integrityvikingfunds.com/Documents), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you hold Fund shares through a financial intermediary and you already elected to receive shareholder reports electronically through your financial intermediary, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically by notifying your financial intermediary.
You may elect to receive all future shareholder reports in paper free of charge. You can inform your financial intermediary that you wish to continue receiving paper copies of your shareholder reports, or if you are a direct investor, by calling the Funds at 800-601-5593. Your election to receive reports in paper will apply to all Funds you hold directly or through your financial intermediary, as applicable.
INTEGRITY DIVIDEND HARVEST FUND
DEAR SHAREHOLDERS:
Enclosed is the report of the operations for Integrity Dividend Harvest Fund (the “Dividend Harvest Fund” or “Fund”) for the year ended July 31, 2020. The Fund’s portfolio and related financial statements are presented within for your review.
The period saw the S&P 500 TR Index (“S&P”) return 11.96%. Many may consider the positive return surprising considering the year was immersed in trade war fears, recession fears, widespread rioting over social concerns, and, most notably, the global economic shutdown caused by COVID-19. A likely reason for the market’s resiliency was the expedited response by the U.S. Government and the Federal Reserve, who made fiscal and monetary moves, the likes of which haven’t been seen since the Great Recession. Investors felt confidence knowing such large actors could move so fast and, ultimately, protect financial markets. COVID-19 had not disappeared by the end of the period, and it is yet to be seen what moves will be necessary going forward.
The U.S. Bureau of Labor Statistics reported that the unemployment rate dropped to a 50-year low of 3.5% in September 2019. The rate remained low until the effects of COVID-19 economic shutdown took hold. The unemployment rate spiked to 14.7% in April 2020. The rate has been steadily declining since then, ending the period at 10.2% as businesses began to re-open.
The Federal Reserve’s Federal Open Market Committee (“FOMC”) dropped the target range of the federal funds rate by 0.25% at each of the July, September, and October meetings in 2019 due to concerns of a possible economic slowdown. The FOMC dropped the target range another 0.50% on March 3, 2020, as the full impact of COVID-19 was coming to light. Twelve days later they dropped the rate to 0%. The Federal Reserve has also been buying assets, including new types of assets that they haven’t purchased in the past, and expanding their balance sheet. It appears, for now at least, that these monetary moves have had a positive impact on financial markets.
During the period, information technology was the best performing sector, led higher by mega-cap giants like Apple and Microsoft. Consumer discretionary was the next best, containing the stand-out performer Amazon. Investors heavily preferred growth over value. The worst performing sector was energy. Investors had already feared too much supply and too little demand growth even before COVID-19 forced many to halt all travel. Due to oversupply, a barrel of oil actually traded in negative territory for a short time during the period.
The Fund’s total returns for Class A, C, and I shares were -2.39%, -3.13%, and -2.14%, respectively, for the year ended July 31, 2020, while the S&P gained 11.96%. The Fund is in the Morningstar Large Value category which returned -5.37% over the same time period. While the Fund outperformed its Morningstar category, it underperformed the S&P. The Fund’s underperformance relative to the S&P was primarily driven by an underweight allocation to information technology and an overweight allocation to energy. Aiding relative performance was stock selection in industrials.
The Fund seeks to maximize total return by emphasizing high current income with long term appreciation as a secondary objective, consistent with preservation of capital. The Portfolio Management Team (“Team”) considers dividend yield, dividend growth rate, earnings growth, price-to-earnings multiples, and balance sheet strength. The Team emphasizes dividend yield in selecting stocks for the Fund because we believe that, over time, dividend income can contribute significantly to total return and is a more consistent source of investment return than appreciation.
If you would like more frequent updates, visit our website at www.integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
The Portfolio Management Team
The views expressed are those of The Portfolio Management Team of Viking Fund Management. The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance. The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.50%, 2.25%, and 1.25% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.95%, 1.70%, and 0.70% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2020 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.95%, 1.70%, and 0.70% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to November 29, 2020 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
INTEGRITY DIVIDEND HARVEST FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended July 31, 2020
| 1 year | 3 year | 5 year | 10 year | Since Inception* |
Class A Without sales charge | -2.39% | 4.00% | 7.08% | N/A | 8.89% |
Class A With sales charge (5.00%) | -7.28% | 2.24% | 5.99% | N/A | 8.21% |
Class C Without CDSC | -3.13% | 3.24% | N/A | N/A | 6.36% |
Class C With CDSC (1.00%) | -4.03% | 3.24% | N/A | N/A | 6.36% |
Class I Without sales charge | -2.14% | 4.26% | N/A | N/A | 5.26% |
* May 1, 2012 for Class A; August 3, 2015 for Class C; August 1, 2016 for Class I |
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.50%, 2.25%, and 1.25% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.95%, 1.70%, and 0.70% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2020 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.95%, 1.70%, and 0.70% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to November 29, 2020 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares. The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends.
INTEGRITY ENERGIZED DIVIDEND FUND
DEAR SHAREHOLDERS:
Enclosed is the report of the operations for the Integrity Energized Dividend Fund (the “Energized Dividend Fund” or “Fund”) for the year ended July 31, 2020. The Fund’s portfolio and related financial statements are presented within for your review.
Market Review
The period saw the S&P 500 TR Index return 11.96%. Many may consider the positive return surprising considering the year was immersed in trade war fears, recession fears, widespread rioting over social concerns, and, most notably, the global economic shutdown caused by COVID-19. A likely reason for the market’s resiliency was the expedited response by the U.S. Government and the Federal Reserve, who made fiscal and monetary moves the likes of which haven’t been seen since the Great Recession. Investors felt confidence knowing such large actors could move so fast and, ultimately, protect financial markets. The virus had not disappeared by the end of the period, and it is yet to be seen what moves will be necessary going forward.
The U.S. Bureau of Labor Statistics reported that the unemployment rate dropped to a 50-year low of 3.5% in September 2019. The rate remained low until the effects of the COVID-19 economic shutdown took hold. The unemployment rate spiked to 14.7% in April 2020. The rate has been steadily declining since then, ending the period at 10.2% as businesses began to re-open.
The Federal Reserve’s Federal Open Market Committee (“FOMC”) dropped the target range of the federal funds rate by 0.25% at each of the July, September, and October meetings in 2019 due to concerns of a possible economic slowdown. The FOMC dropped the target range another 0.50% on March 3, 2020, as the full impact of COVID-19 was coming to light. Twelve days later they dropped the rate to 0%. The Federal Reserve has also been buying assets, including new types of assets that they haven’t purchased in the past, and expanding their balance sheet. It appears, for now at least, that these monetary moves have had a positive impact on financial markets.
During the period, information technology was the best performing sector, led higher by mega-cap giants like Apple and Microsoft. Consumer discretionary was the next best, containing the stand-out performer Amazon. Investors heavily preferred growth over value. The worst performing sector was energy. Investors had already feared too much supply and too little demand growth even before COVID-19 forced many to halt all travel. Due to oversupply, a barrel of oil actually traded in negative territory for a short time during the period.
Energy Review
The third quarter of 2019 truly proved how anemic sentiment towards crude oil and energy equities had become. During the quarter, there was a strike on Saudi Arabia’s oilfield and infrastructure that shut in 5.7 million barrels of oil per day (“bopd”). The initial move in crude oil was sharply higher, however, within two weeks, crude oil was trading below where it was before the attack. This attack left the markets heavily undersupplied over the third quarter, with estimates as high as a 2.5 million barrel per day deficit, and crude oil fell 7.78% over the quarter. This emphasizes that investors seemed to be solely focused on 2020 demand concerns.
For the third quarter of 2019, the Fund (Class A shares) declined 5.81% compared to a loss of 7.34% for the S&P 1500 Energy Composite and a loss of 10.05% for the Morningstar Equity Energy category. WTI crude oil decreased 7.13% to end the quarter at $54.07 and Brent crude oil decreased 7.13% to end the quarter at $59.25.
The energy sector got off to a negative start in the fourth quarter of 2019, trading lower over the first two months, even as crude oil traded higher. However, December saw a significant snapback for the sector, trading up 7% over the month. OPEC production cuts and progression on the U.S./China trade deal all contributed to the strong December returns for the energy sector. At the beginning of December, OPEC agreed to additional production cuts of 400,000 bopd. Saudi Arabia committed to 170-175,000 bopd, with the rest being split between the remaining OPEC countries. This set a solid floor for crude prices and created a much needed tailwind for the commodity. Additionally, U.S. and China made great progression on “Phase 1” of the trade deal. This was important because its removes uncertainty on the impact tariffs would have on consumption and industrial activity.
For the fourth quarter of 2019, the Fund (Class A shares) returned 3.31% compared to a gain of 5.76% for the S&P 1500 Energy Composite and a gain of 8.06% for the Morningstar Equity Energy category. WTI crude oil increased 14.52% to end the quarter at $61.06 and Brent crude oil increased 14.66% to end the quarter at $66.00.
Over the first quarter of 2020, the energy sector traded down as a result of COVID-19 and the oil price war between OPEC and Russia. The magnitude of COVID-19 on demand was in the range of 20-25 million bopd, a level of demand destruction never seen in history. Adding fuel to the fire, OPEC and Russia engaged in an oil price war, adding several million bopd of production in a fight for market share. The combination of these two events has resulted in an oversupplied market to the tune of 25-30 million bopd. Oil prices cratered during the quarter over concerns of a massive oversupply causing global inventories to fill. Late in March, the oil price war came to an end, with OPEC+ proposing to cut production by nearly 10 million bopd.
For the first quarter of 2020, the Fund (Class A shares) declined 42.41% compared to a loss of 51.63% for the S&P 1500 Energy Composite and a loss of 53.36% for the Morningstar Equity Energy category. WTI crude oil decreased 65.85% to end the quarter at $20.48 and Brent crude oil decreased 58.88% to end the quarter at $26.35.
The second quarter of 2020 turned out to be quite a roller coaster ride for the energy sector. Energy equities and crude oil continued their downward spiral in the month of April, and surged higher in the months of May and June. In April, the energy sector’s underperformance was driven by COVID-19 and the shutdown of the U.S. economy. The recovery witnessed in the latter months of the quarter was driven by a combination of the economy beginning to open back up and oil production curtailments across the globe. Aggressive actions taken by OPEC and Russia helped balance global supply and demand, but low oil prices were needed to shut in additional oil production. Within U.S. shale alone, oil production fell by an estimated two million barrels of oil per day.
For the second quarter of 2020, the Fund (Class A shares) returned 14.29% compared to a gain of 31.88% for the S&P 1500 Energy Composite and a gain of 36.61% for the Morningstar Equity Energy category. WTI crude oil increased 31.82% to end the quarter at $39.27 and Brent crude oil increased 20.92% to end the quarter at $41.27.
In the month of July 2020, crude prices rose 2.76% to close the month at $40.57. The Fund declined 3.11% in July, 3.15% behind the Morningstar Equity Energy category.
The trough in oil demand is likely behind us, given that most countries around the world have begun to reopen. We are a long way from pre-pandemic demand levels, but consumption is beginning to claw back. On the supply front, OPEC’s pledged 10 million bopd production cut combined with other oil production shut ins have balanced supply and demand and aided crude oil prices. With the U.S. rig count down over 60% since the end of March, it is likely U.S. oil production will take time to recover, which will further support crude oil prices domestically. These cutbacks in activity were essential to stabilize oil prices; however, it will likely take into 2021 to normalize oil inventories as tanks filled nearly to the brim during peak pandemic. Going forward, we see incredible value in the energy sector and continue to focus on well capitalized companies with strong balance sheets and sound business models.
The Fund’s total returns for Class A, C, and I shares were -36.02%, -36.37%, and -35.76%, respectively, for the year ended July 31, 2020, compared to returns of -37.37%, -39.07%, and 9.23% for the Morningstar Equity Energy Category, the S&P Composite 1500 Energy Index, and the S&P Composite 1500 Index, respectively. Aiding relative performance was an overweight allocation to chemicals, as well as selection within pipelines. Detracting from the Fund’s performance relative to its Morningstar category was selection within integrated oil companies.
If you would like more frequent updates, visit our website at www.integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
The Portfolio Management Team
The views expressed are those of The Portfolio Management Team of Viking Fund Management. The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance. The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 2.84%, 3.64%, and 2.61% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.99%, 1.74%, and 0.74% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2020 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 1.05%, 1.80%, and 0.80% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to November 29, 2020 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
INTEGRITY ENERGIZED DIVIDEND FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended July 31, 2020
| 1 year | 3 year | 5 year | 10 year | Since Inception* | |
Class A Without sales charge | -36.02% | -9.66% | N/A | N/A | -2.92% | |
Class A With sales charge (5.00%) | -39.23% | -11.18% | N/A | N/A | -4.09% | |
Class C Without CDSC | -36.37% | -10.29% | N/A | N/A | -3.62% | |
Class C With CDSC (1.00%) | -36.97% | -10.29% | N/A | N/A | -3.62% | |
Class I Without sales charge | -35.76% | -9.39% | N/A | N/A | -2.88% | |
* May 2, 2016 for Class A and C; August 1, 2016 for Class I | ||||||
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 2.84%, 3.64%, and 2.61% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.99%, 1.74%, and 0.74% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2020 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 1.05%, 1.80%, and 0.80% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to November 29, 2020 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares. The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends.
INTEGRITY GROWTH & INCOME FUND
DEAR SHAREHOLDERS:
Enclosed is the report of the operations for ESG Integrity Growth & Income Fund (the “Growth & Income Fund” or “Fund”) for the year ended July 31, 2020. The Fund’s portfolio and related financial statements are presented within for your review.
The period saw the S&P 500 TR Index (“S&P”) return 11.96%. Many may consider the positive return surprising considering the year was immersed in trade war fears, recession fears, widespread rioting over social concerns, and, most notably, the global economic shutdown caused by COVID-19. A likely reason for the market’s resiliency was the expedited response by the U.S. Government and the Federal Reserve, who made fiscal and monetary moves the likes of which haven’t been seen since the Great Recession. Investors felt confidence knowing such large actors could move so fast and, ultimately, protect financial markets. COVID-19 had not disappeared by the end of the period, and it is yet to be seen what moves will be necessary going forward.
The U.S. Bureau of Labor Statistics reported that the unemployment rate dropped to a 50-year low of 3.5% in September 2019. The rate remained low until the effects of COVID-19 economic shutdown took hold. The unemployment rate spiked to 14.7% in April 2020. The rate has been steadily declining since then, ending the period at 10.2% as businesses began to re-open.
The Federal Reserve’s Federal Open Market Committee (“FOMC”) dropped the target range of the federal funds rate by 0.25% at each of the July, September, and October meetings in 2019 due to concerns of a possible economic slowdown. The FOMC dropped the target range another 0.50% on March 3, 2020, as the full impact of COVID-19 was coming to light. Twelve days later they dropped the rate to 0%. The Federal Reserve has also been buying assets, including new types of assets that they haven’t purchased in the past, and expanding their balance sheet. It appears, for now at least, that these monetary moves have had a positive impact on financial markets.
During the period, information technology was the best performing sector, led higher by mega-cap giants like Apple and Microsoft. Consumer discretionary was the next best, containing the stand-out performer Amazon. Investors heavily preferred growth over value. The worst performing sector was energy. Investors had already feared too much supply and too little demand growth even before COVID-19 forced many to halt all travel. Due to oversupply, a barrel of oil actually traded in negative territory for a short time during the period.
The Fund’s total returns for Class A, C, and I shares were 11.42%, 10.97%, and 11.68%, respectively, for the year ended July 31, 2020, while the S&P gained 11.96%. The Fund is in the Morningstar Large Blend category which returned 7.60% over the same time period. While the Fund outperformed its Morningstar category, it slightly underperformed the S&P. The Fund’s underperformance relative to the S&P was primarily driven by stock selection in communication services and utilities. Aiding relative performance was an underweight allocation to energy and stock selection in financials.
The Fund is managed using a blended growth and income investment strategy. The Portfolio Management Team (“Team”) seeks to invest primarily in domestic common stocks, balancing investments between growth & dividend paying stocks, depending on where we see the best value. The Team also tries to emphasize companies we believe offer both attractive investment opportunities and demonstrate a positive awareness of their impact on the society in which they operate.
If you would like more frequent updates, visit our website at www.integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
The Portfolio Management Team
The views expressed are those of The Portfolio Management Team of Viking Fund Management. The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance. The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.87%, 1.62%, and 1.62% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 1.24%, 1.62%, and .99% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2020 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 1.24%, 1.99%, and .99% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to November 29, 2020 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
INTEGRITY GROWTH & INCOME FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended July 31, 2020
| 1 year | 3 year | 5 year | 10 year | Since Inception* |
|
Class A Without sales charge | 11.42% | 13.16% | 9.82% | 12.15% | 8.97% |
|
Class A With sales charge (5.00%) | 5.85% | 11.24% | 8.70% | 11.57% | 8.75% |
|
Class C Without CDSC | 10.97% | 12.63% | N/A | N/A | 9.32% |
|
Class C With CDSC (1.00%) | 9.97% | 12.63% | N/A | N/A | 9.32% |
|
Class I Without sales charge | 11.68% | 13.43% | N/A | N/A | 13.02% |
|
* January 3, 1995 for Class A; August 3, 2015 for Class C; August 1, 2016 for Class I |
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.87%, 1.62%, and 1.62% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 1.24%, 1.62%, and .99% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2020 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 1.24%, 1.99%, and .99% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to November 29, 2020 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares. The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends. The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser.
INTEGRITY HIGH INCOME FUND
DEAR SHAREHOLDERS:
Enclosed is the report of the operations for Integrity High Income Fund (the “High Income Fund” or “Fund”) for the year ended July 31, 2020. The Fund’s portfolio and related financial statements are presented within for your review.
Market Environment
The high yield bond market experienced a historic twelve month period ended July 31, 2020. The high yield market posted six consecutive months of positive gains from August 2019 through January 2020, as the market shrugged off an inverted 2/10s yield curve and an air strike on oil facilities in Saudi Arabia in the fall of 2019. The high yield market posted a strong finish to 2019 year end as phase one of the US-China trade deal materialized in December, and this momentum carried into January and the first half of February. There are three distinct periods to the high yield market in 2020 year-to-date: stability after a strong 2019, a historic sell-off, and a sharp rebound driven by unprecedented monetary and fiscal policy responses. Through mid-February, the high yield market had returned +/- 0% with spreads near cycle lows and with refinancings dominating new issuance. Then, from February 19th to March 23rd, the high yield market experienced its fastest and most severe drawdown on record, bottoming with a year-to-date return of -20.6% as a result of the detonation of oil markets and the spread of COVID-19 that affected all risk assets. Since March 23rd, the high yield market, in conjunction with all risk assets, has rallied significantly as a result of US Government actions and implicit and explicit support from the Federal Reserve (the “Fed”). Additionally, with the gradual re-opening of economies and business activity, investor optimism has increased that the economy has bottomed and will continue to recover. The high yield market increased 3.00% for the twelve-month period ended July 31, 2020 (as measured by the ICE BofAML US High Yield Constrained Index, HUC0) despite spreads widening 116 bps to 523 bps while yields increased 5 bps to 6.07% as the yield on 10 year US Treasuries decreased 148 bps to 0.53%. Higher quality drastically outperformed lower quality, with BBs returning 6.80%, single B’s 0.92% and CCCs -8.99%. The automotive, technology and banking sectors led the contributors to performance while the energy, transportation and leisure sectors, those most affected by COVID-19, led the detractors.
Despite strong new issuance and fallen angels year-to-date, $245 and $204 billion, respectively, technicals remain favorable as the Fed’s support in the market has generated demand and lifted bond prices. For the trailing twelve months, retail bond inflows total $38 billion, as investor demand has surged since late March. New issuance finished 2019 with $287 billion, and 68% was refinancing. Refinancing continued to dominate issuance to begin 2020 before the high yield issuance market was essentially closed during the month of March. The second quarter’s $145.5 billion in gross and $75.5 billion of net issuance were records for a single quarter, compared to the previous record quarters of $121.2 billion (2Q ‘14) and $52.6 billion (1Q ‘15). Additionally, June set the all-time record for a single month gross issuance, pricing $61.5 billion. Default activity increased significantly, although the default rate is still lower than historical recessionary levels and the Fed’s support in the market should suppress defaults. The12-month par-weighted default rate is now 6.22%, the highest level in a decade and is 409 bps higher than the default rate in July 2019.
With a 3.00% return during the twelve-month period ended July 31, 2020 (HUC0), high yield trailed high grade credit (C0A0), 12.01%, U.S. Aggregate (D0A0), 10.40%, 5-year Treasuries (GA05), 9.16%, and emerging markets (EMCB), 5.77%.
Portfolio Performance and Positioning
For the twelve-month period ended July 31, 2020, the High Income Fund returned 3.37% (Class A shares, net of fees), 2.74% (Class C shares, net of fees) and 3.63% (Class I shares, net of fees) compared to its benchmark, the Bloomberg Barclays U.S. High Yield Index, which returned 4.21%, and the Morningstar High Yield category’s median period return of 2.24%. The Fund’s Class A shares underperformed the benchmark for the twelve-month period due to underweight to independent energy in addition to security selection in the wirelines and transportation services sectors. The largest detractors resulted from relative weightings in Occidental Petroleum, EP Energy, Windstream Holdings, Neiman Marcus Group and Western Gas. Alternatively, contributions from an underweight to oil field services in addition to security selection in the wireless and other-REITs sectors enhanced performance for the twelve-month period. Specifically, weightings in Softbank Group (Sprint), DISH Network, Valaris, HCA Healthcare and Noble Corporation enhanced performance results in the period.
Compared to the benchmark at July 31, 2020, the Fund was overweight in cable satellite, consumer products and healthcare due to our view of the relative value opportunities within those sectors. The Fund was underweight in food & beverage, independent energy and home construction because we have not found these sectors attractive due to challenging fundamental outlooks or rich valuations. Relative to the benchmark at July 31, 2020, the Fund’s yield, spread and duration were all lower than those of the benchmark.
Market Outlook
The high yield selloff that started in late February and accelerated dramatically in March has since reversed significantly, driven by monetary and fiscal policy and optimism surrounding a faster than feared global economic recovery. Corporate fundamentals face significant challenges as the economy works back into reopening. The economic impact of COVID-19 is widespread but most significant in travel, leisure, restaurants, retail and casinos, as well as energy. Defensive sectors, particularly utilities, technology and healthcare, have held in well and are mostly trading at pre-COVID-19 levels. Trailing defaults have increased to 6.22% and are expected to continue to rise throughout the year, driven by energy and the weakest issuers in the most affected sectors. These developments overshadow what had been solid credit fundamentals entering the year. Technicals have been very supportive since market lows, catalyzed by the Fed announcing high yield ETFs are eligible for open market purchases. The current economic and market conditions are expected to continue to accelerate fallen angels. Our fundamental research, bottom-up security selection style should allow us to continue to capitalize on market opportunities.
If you would like more frequent updates, visit our website at www.integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
Robert L. Cook | Thomas G. Hauser |
The views expressed are those of Robert L. Cook, Senior Portfolio Manager and Managing Director, and Thomas G. Hauser, Vice President, J.P. Morgan Investment Management, Inc. (“JPMIM”), sub-adviser to the Fund. The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance. The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.69%, 2.44%, and 1.44% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.95%, 1.70%, and 0.70% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2020 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.99%, 1.74%, and 0.74% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to November 29, 2020 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
INTEGRITY HIGH INCOME FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended July 31, 2020
| 1 year | 3 year | 5 year | 10 year | Since Inception* |
Class A Without sales charge | 3.37% | 4.18% | 5.14% | 6.01% | 5.27% |
Class A With sales charge (4.25%) | -0.96% | 2.68% | 4.23% | 5.55% | 4.99% |
Class C Without CDSC | 2.74% | 3.41% | 4.35% | 5.22% | 4.46% |
Class C With CDSC (1.00%) | 1.75% | 3.41% | 4.35% | 5.22% | 4.46% |
Class I Without sales charge | 3.63% | 4.40% | N/A | N/A | 5.75% |
* April 30, 2004 for Class A and C; August 1, 2016 for Class I |
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.69%, 2.44%, and 1.44% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.95%, 1.70%, and 0.70% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2020 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.99%, 1.74%, and 0.74% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to November 29, 2020 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares. The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends. The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser.
INTEGRITY MID-NORTH AMERICAN RESOURCES FUND
DEAR SHAREHOLDERS:
Enclosed is the report of the operations for Integrity Mid-North American Resources Fund (the “MNA Resources Fund” or “Fund”) for the year ended July 31, 2020. The Fund’s portfolio and related financial statements are presented within for your review.
Market Review
The period saw the S&P 500 TR Index return 11.96%. Many may consider the positive return surprising considering the year was immersed in trade war fears, recession fears, widespread rioting over social concerns, and, most notably, the global economic shutdown caused by COVID-19. A likely reason for the market’s resiliency was the expedited response by the U.S. Government and the Federal Reserve, who made fiscal and monetary moves the likes of which haven’t been seen since the Great Recession. Investors felt confidence knowing such large actors could move so fast and, ultimately, protect financial markets. The virus had not disappeared by the end of the period, and it is yet to be seen what moves will be necessary going forward.
The U.S. Bureau of Labor Statistics reported that the unemployment rate dropped to a 50-year low of 3.5% in September 2019. The rate remained low until the effects of the COVID-19 economic shutdown took hold. The unemployment rate spiked to 14.7% in April 2020. The rate has been steadily declining since then, ending the period at 10.2% as businesses began to re-open.
The Federal Reserve’s Federal Open Market Committee (“FOMC”) dropped the target range of the federal funds rate by 0.25% at each of the July, September, and October meetings in 2019 due to concerns of a possible economic slowdown. The FOMC dropped the target range another 0.50% on March 3, 2020, as the full impact of COVID-19 was coming to light. Twelve days later they dropped the rate to 0%. The Federal Reserve has also been buying assets, including new types of assets that they haven’t purchased in the past, and expanding their balance sheet. It appears, for now at least, that these monetary moves have had a positive impact on financial markets.
During the period, information technology was the best performing sector, led higher by mega-cap giants like Apple and Microsoft. Consumer discretionary was the next best, containing the stand-out performer Amazon. Investors heavily preferred growth over value. The worst performing sector was energy. Investors had already feared too much supply and too little demand growth even before COVID-19 forced many to halt all travel. Due to oversupply, a barrel of oil actually traded in negative territory for a short time during the period.
Energy Review
The third quarter of 2019 truly proved how anemic sentiment towards crude oil and energy equities had become. During the quarter, there was a strike on Saudi Arabia’s oilfield and infrastructure that shut in 5.7 million barrels of oil per day (“bopd”). The initial move in crude oil was sharply higher, however, within two weeks, crude oil was trading below where it was before the attack. This attack left the markets heavily undersupplied over the third quarter, with estimates as high as a 2.5 million barrel per day deficit, and crude oil fell 7.78% over the quarter. This emphasizes that investors seemed to be solely focused on 2020 demand concerns.
For the third quarter of 2019, the Fund (Class A shares) declined 7.76% compared to a loss of 7.34% for the S&P 1500 Energy Composite and a loss of 10.05% for the Morningstar Equity Energy category. WTI crude oil decreased 7.13% to end the quarter at $54.07 and Brent crude oil decreased 7.13% to end the quarter at $59.25.
The energy sector got off to a negative start in the fourth quarter of 2019, trading lower over the first two months, even as crude oil traded higher. However, December saw a significant snapback for the sector, trading up 7% over the month. OPEC production cuts and progression on the U.S./China trade deal all contributed to the strong December returns for the energy sector. At the beginning of December, OPEC agreed to additional production cuts of 400,000 bopd. Saudi Arabia committed to 170-175,000 bopd, with the rest being split between the remaining OPEC countries. This set a solid floor for crude prices and created a much needed tailwind for the commodity. Additionally, U.S. and China made great progression on “Phase 1” of the trade deal. This was important because its removes uncertainty on the impact tariffs would have on consumption and industrial activity.
For the fourth quarter of 2019, the Fund (Class A shares) returned 6.35% compared to a gain of 5.76% for the S&P 1500 Energy Composite and a gain of 8.06% for the Morningstar Equity Energy category. WTI crude oil increased 14.52% to end the quarter at $61.06 and Brent crude oil increased 14.66% to end the quarter at $66.00.
Over the first quarter of 2020, the energy sector traded down as a result of COVID-19 and the oil price war between OPEC and Russia. The magnitude of COVID-19 on demand was in the range of 20-25 million bopd, a level of demand destruction never seen in history. Adding fuel to the fire, OPEC and Russia engaged in an oil price war, adding several million bopd of production in a fight for market share. The combination of these two events has resulted in an oversupplied market to the tune of 25-30 million bopd. Oil prices cratered during the quarter over concerns of a massive oversupply causing global inventories to fill. Late in March, the oil price war came to an end, with OPEC+ proposing to cut production by nearly 10 million bopd.
For the first quarter of 2020, the Fund (Class A shares) declined 50.28% compared to a loss of 51.63% for the S&P 1500 Energy Composite and a loss of 53.36% for the Morningstar Equity Energy category. WTI crude oil decreased 65.85% to end the quarter at $20.48 and Brent crude oil decreased 58.88% to end the quarter at $26.35.
The second quarter of 2020 turned out to be quite a roller coaster ride for the energy sector. Energy equities and crude oil continued their downward spiral in the month of April, and surged higher in the months of May and June. In April, the energy sector’s underperformance was driven by COVID-19 and the shutdown of the U.S. economy. The recovery witnessed in the latter months of the quarter was driven by a combination of the economy beginning to open back up and oil production curtailments across the globe. Aggressive actions taken by OPEC and Russia helped balance global supply and demand, but low oil prices were needed to shut in additional oil production. Within U.S. shale alone, oil production fell by an estimated two million barrels of oil per day.
For the second quarter of 2020, the Fund (Class A shares) returned 22.87% compared to a gain of 31.88% for the S&P 1500 Energy Composite and a gain of 36.61% for the Morningstar Equity Energy category. WTI crude oil increased 31.82% to end the quarter at $39.27 and Brent crude oil increased 20.92% to end the quarter at $41.27.
In the month of July 2020, crude prices rose 2.76% to close the month at $40.57. The Fund gained 1.97% in July, 1.92% ahead of the Morningstar Equity Energy category.
The trough in oil demand is likely behind us, given that most countries around the world have begun to reopen. We are a long way from pre-pandemic demand levels, but consumption is beginning to claw back. On the supply front, OPEC’s pledged 10 million bopd production cut combined with other oil production shut ins have balanced supply and demand and aided crude
oil prices. With the U.S. rig count down over 60% since the end of March, it is likely U.S. oil production will take time to recover, which will further support crude oil prices domestically. These cutbacks in activity were essential to stabilize oil prices; however, it will likely take into 2021 to normalize oil inventories as tanks filled nearly to the brim during peak pandemic. Going forward, we see incredible value in the energy sector and continue to focus on well capitalized companies with strong balance sheets and sound business models.
The Fund’s total returns for Class A, C, and I shares were -37.47%, -37.78%, and -37.04%, respectively, for the twelve month period ended July 31, 2020, compared to returns of -37.37%, -39.07%, and 9.23% for the Morningstar Equity Energy Category, the S&P Composite 1500 Energy Index, and the S&P Composite 1500 Index, respectively. Aiding relative performance was an overweight allocation to utilities, as well as selection within oilfield service. Detracting from the Fund’s performance relative to its Morningstar category was selection within exploration & production and integrated oil companies.
If you would like more frequent updates, visit our website at www.integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
The Portfolio Management Team
The views expressed are those of The Portfolio Management Team of Viking Fund Management, LLC (“Viking Fund Management”, “VFM”, or the “Adviser”). The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance. The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.59%, 2.09%, and 1.09% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 1.50%, 2.00%, and 1.00% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2020 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 1.50%, 2.00%, and 1.00% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to November 29, 2020 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
INTEGRITY MID-NORTH AMERICAN RESOURCES FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended July 31, 2020
| 1 year | 3 year | 5 year | 10 year | Since Inception* |
Class A Without sales charge | -37.47% | -18.10% | -12.55% | -2.36% | 2.33% |
Class A With sales charge (5.00%) | -40.66% | -19.49% | -13.44% | -2.86% | 2.08% |
Class C Without CDSC | -37.78% | -18.53% | -12.97% | N/A | -14.70% |
Class C With CDSC (1.00%) | -38.39% | -18.53% | -12.97% | N/A | -14.70% |
Class I Without sales charge | -37.04% | -17.71% | N/A | N/A | -12.66% |
* April 5, 1999 for Class A; May 1, 2014 for Class C; August 1, 2016 for Class I |
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.59%, 2.09%, and 1.09% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 1.50%, 2.00%, and 1.00% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2020 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 1.50%, 2.00%, and 1.00% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to November 29, 2020 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares. The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends. The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser. The Fund’s performance prior to November 10, 2008 was achieved under the previous investment strategy, which may have produced different results than the current investment strategy.
INTEGRITY SHORT TERM GOVERNMENT FUND
DEAR SHAREHOLDERS:
Enclosed is the report of the operations for the Integrity Short Term Government Fund (the “Fund”) for the two months ended July 31, 2020. The Fund’s portfolio and related financial statements are presented within for your review.
Market Environment
The 2nd quarter of 2020 witnessed an unprecedented global policy response to the economic shock caused by the COVID-19 pandemic. On the monetary policy side, after cutting the Fed Funds rate to the zero lower bound and launching another Quantitative Easing program (QE4) [starting with unlimited purchases of Treasury and Agency Mortgage-backed Securities (“MBS”)], the Federal Reserve (the “Fed”) has since extended the array of programs to buying corporate bonds (both investment grade and high-yield) and local government debt, and making loans to midsize businesses, as it strengthened its effort to “bridge across temporary (economic) interruptions” caused by the pandemic. Relative to the 2008/09 financial crisis led by the housing market, the health crisis was more damaging to economic activity given the shutdowns across the nation. US real GDP collapsed by -31.7% annualized in the second quarter. At the June Federal Open Market Committee (the “FOMC”) meeting, the Fed conveyed that it will be on hold for a long period as Chair Powell commented “the FOMC is not even thinking about thinking about raising rates”. The Fed also noted it would continue its Treasuries and agency residential and commercial mortgage-backed securities purchases. The Fed is looking to buy at least $80bn/month in Treasuries (and $40bn/month in agency MBS) over the coming months. Near the end of the quarter, risk sentiment was dented amid signs that COVID-19 infection rates were rising. In July, the market was also concerned about the upcoming expiration of certain fiscal stimulus provisions. Front loaded unemployment benefits under the CARES act largely replaced US households’ loss of income from layoffs and have supported consumer credit performance, from mortgage to other unsecured personal finances. There were no major surprises at the July month end FOMC meeting. Chair Powell commented on the slowing momentum of economic recovery since June, and emphasized the Fed’s support “until the turmoil from the pandemic and the economic fallout are behind us”.
Portfolio Performance and Positioning
For the two months ended July 31, 2020, the Integrity Short Term Government Fund returned 0.46%* (I Class shares, net of fees) compared to its benchmark, the ICE BofA 1-3 Year U.S. Treasury Index, which returned 0.13%. The Fund’s outperformance was driven mainly by MBS spread tightening and the yield differential between Treasuries and our portfolio of well-structured Agency MBS.
Market Outlook
On the interest rate front, in addition to asset purchases, forward guidance and (potentially) yield curve control should further anchor the short to intermediate part of the yield curve to the effective lower bound. Low interest rate volatility benefits Agency MBS investors given investors are short the prepayment options.
As it relates to MBS, prepayments have generally exceeded expectations over the summer months as efficiency gained in the refinancing processing have more than offset social distancing and limited originator capacity. Primary and secondary spreads remain wide implying potentially even lower mortgage rates in the future. Overall, MBS valuations remain attractive in our view balancing the prepayment risk against the lack of high quality fixed income securities with attractive yields over Treasuries, and the strong technical tailwind due to the Fed’s continued support of the Agency MBS sector.
If you would like more frequent updates, please visit the Fund’s website at www.integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
M.D. Sass Investor Services Team
The views expressed are those of M.D. Sass Investor Services, Inc., sub-adviser to the Fund. The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance. The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) for the two months ended July 31, 2020 was 1.33% (annualized) and 1.08% (annualized) for Class A and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) for the two months ended July 31, 2020 was 0.80% and 0.55% for Class A and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through January 18, 2022 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.80% and 0.55% for Class A and I, respectively. This expense limitation agreement may only be terminated or modified prior to January 18, 2022 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
INTEGRITY SHORT TERM GOVERNMENT FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended July 31, 2020
| 1 year | 3 year | 5 year | 10 year | Since Inception* |
Class A Without sales charge | N/A | N/A | N/A | N/A | 1.64% |
Class A With sales charge (2.00%) | N/A | N/A | N/A | N/A | -0.40% |
Class I Without sales charge | 3.02% | 2.60% | 1.83% | N/A | 1.52% |
* January 21, 2020 for Class A; June 30, 2011 for Class I |
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) for the two months ended July 31, 2020 was 1.33% (annualized) and 1.08% (annualized) for Class A and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) for the two months ended July 31, 2020 was 0.80% and 0.55% (annualized) for Class A and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through January 18, 2022 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.80% and 0.55% for Class A and I, respectively. This expense limitation agreement may only be terminated or modified prior to January 18, 2022 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares. The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends.
INTEGRITY DIVIDEND HARVEST FUND
PORTFOLIO MARKET SECTORS July 31, 2020
Consumer Staples | 24.8% |
Health Care | 19.4% |
Utilities | 13.4% |
Communication Services | 13.3% |
Information Technology | 10.2% |
Financials | 9.9% |
Industrials | 3.6% |
Consumer Discretionary | 3.5% |
Energy | 1.7% |
Cash Equivalents and Other | 0.2% |
100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS July 31, 2020
Fair | ||||
Shares |
| Value | ||
COMMON STOCKS (99.8%) | ||||
Communication Services (13.3%) | ||||
AT&T Inc | 240,000 | $ | 7,099,200 | |
BCE Inc | 105,000 | 4,402,650 | ||
Verizon Communications Inc | 142,000 | 8,162,160 | ||
| 19,664,010 | |||
Consumer Discretionary (3.5%) | ||||
Genuine Parts Co | 15,000 | 1,352,250 | ||
McDonald's Corp | 11,000 | 2,137,080 | ||
Target Corp | 13,000 | 1,636,440 | ||
| 5,125,770 | |||
Consumer Staples (24.8%) | ||||
Altria Group Inc | 173,000 | 7,118,950 | ||
Coca Cola Co/The | 140,000 | 6,613,600 | ||
Kimberly Clark Corp | 46,000 | 6,993,840 | ||
PepsiCo Inc | 26,000 | 3,579,160 | ||
Philip Morris International Inc | 67,000 | 5,146,270 | ||
Procter & Gamble Co/The | 44,000 | 5,769,280 | ||
Walgreens Boots Alliance Inc | 33,000 | 1,343,430 | ||
| 36,564,530 | |||
Energy (1.7%) | ||||
Chevron Corp | 12,000 | 1,007,280 | ||
TransCanada Corp | 32,000 | 1,459,200 | ||
| 2,466,480 | |||
Financials (9.9%) | ||||
BlackRock Inc | 3,500 | 2,012,535 | ||
Citigroup Inc | 47,000 | 2,350,470 | ||
CME Group Inc | 4,000 | 664,720 | ||
JPMorgan Chase & Co | 37,000 | 3,575,680 | ||
Old Republic International Corp | 115,000 | 1,848,050 | ||
PNC Financial Services Group Inc/The | 21,000 | 2,240,070 | ||
State Street Corp | 10,000 | 637,900 | ||
Truist Financial Corp | 32,000 | 1,198,720 | ||
| 14,528,145 | |||
Health Care (19.4%) | ||||
AbbVie Inc | 75,000 | 7,118,250 | ||
AMGEN INC | 5,000 | 1,223,350 | ||
Bristol Myers Squibb Co | 60,000 | 3,519,600 | ||
Cardinal Health Inc | 30,000 | 1,638,600 | ||
Johnson & Johnson | 46,000 | 6,704,960 | ||
Merck & Co Inc | 45,000 | 3,610,800 | ||
Pfizer Inc | 123,000 | 4,733,040 | ||
| 28,548,600 | |||
Industrials (3.6%) | ||||
3M Co | 9,000 | 1,354,230 | ||
Illinois Tool Works Inc | 10,000 | 1,849,900 | ||
Lockheed Martin Corp | 5,500 | 2,084,335 | ||
| 5,288,465 | |||
Information Technology (10.2%) | ||||
Broadcom Inc | 16,600 | 5,258,050 | ||
Cisco Systems Inc | 30,000 | 1,413,000 | ||
International Business Machines Corp | 55,000 | 6,761,700 | ||
Texas Instruments Inc | 12,000 | 1,530,600 | ||
| 14,963,350 | |||
Utilities (13.4%) | ||||
American Electric Power Co Inc | 45,000 | 3,909,600 | ||
Consolidated Edison Inc | 57,000 | 4,379,310 | ||
Duke Energy Corp | 48,000 | 4,067,520 | ||
Exelon Corp | 90,000 | 3,474,900 | ||
Southern Co/The | 30,000 | 1,638,300 | ||
WEC Energy Group Inc | 24,000 | 2,286,240 | ||
| 19,755,870 | |||
TOTAL COMMON STOCKS (COST: $142,226,471) | $ | 146,905,220 | ||
OTHER ASSETS LESS LIABILITIES (0.2%) | $ | 348,763 | ||
NET ASSETS (100.0%) | $ | 147,253,983 |
The accompanying notes are an integral part of these financial statements.
INTEGRITY ENERGIZED DIVIDEND FUND
PORTFOLIO MARKET SECTORS July 31, 2020
Energy | 82.0% |
Cash Equivalents and Other | 7.2% |
Materials | 5.3% |
Industrials | 2.9% |
Utilities | 2.6% |
100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS July 31, 2020
Fair | ||||
Shares |
| Value | ||
COMMON STOCKS (92.8%) | ||||
Energy (82.0%) | ||||
BP PLC ADR | 15,000 | $ | 330,600 | |
Chevron Corp | 3,600 | 302,184 | ||
ConocoPhillips | 4,500 | 168,255 | ||
CVR Energy Inc | 3,000 | 57,600 | ||
Enbridge Inc | 6,000 | 192,000 | ||
Equinor ADR | 12,000 | 178,920 | ||
Exxon Mobil Corp | 7,000 | 294,560 | ||
Helmerich & Payne Inc | 7,000 | 124,810 | ||
HollyFrontier Corp | 5,000 | 137,500 | ||
Kinder Morgan Inc/DE | 40,000 | 564,000 | ||
Marathon Petroleum Corp | 2,000 | 76,400 | ||
Pembina Pipeline Corp | 8,000 | 194,720 | ||
Phillips 66 | 2,000 | 124,040 | ||
Royal Dutch Shell PLC ADR | 3,000 | 84,900 | ||
TOTAL SE ADR | 4,400 | 165,704 | ||
TransCanada Corp | 4,500 | 205,200 | ||
Valero Energy Corp | 2,500 | 140,575 | ||
Williams Cos Inc/The | 25,000 | 478,250 | ||
| 3,820,218 | |||
Industrials (2.9%) | ||||
Caterpillar Inc | 1,000 | 132,880 | ||
| 132,880 | |||
Materials (5.3%) | ||||
Dow Inc | 4,500 | 184,770 | ||
LyondellBasell Industries NV | 1,000 | 62,520 | ||
| 247,290 | |||
Utilities (2.6%) | ||||
Dominion Resources Inc/VA | 1,500 |
| 121,545 | |
TOTAL COMMON STOCKS (COST: $5,777,360) | $ | 4,321,933 | ||
OTHER ASSETS LESS LIABILITIES (7.2%) | $ | 338,045 | ||
NET ASSETS (100.0%) | $ | 4,659,978 | ||
ADR - American Depositary Receipt | ||||
PLC - Public Limited Company |
The accompanying notes are an integral part of these financial statements.
INTEGRITY GROWTH & INCOME FUND
PORTFOLIO MARKET SECTORS July 31, 2020
Information Technology | 26.3% |
Health Care | 13.5% |
Consumer Discretionary | 12.1% |
Financials | 11.7% |
Cash Equivalents and Other | 11.2% |
Industrials | 8.7% |
Consumer Staples | 6.3% |
Communication Services | 5.4% |
Utilities | 2.8% |
Materials | 2.0% |
100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS July 31, 2020
Fair | ||||
Shares |
| Value | ||
COMMON STOCKS (88.8%) | ||||
Communication Services (5.4%) | ||||
AT&T Inc | 40,000 | $ | 1,183,200 | |
Verizon Communications Inc | 12,000 | 689,760 | ||
Walt Disney Co/The | 7,000 | 818,580 | ||
| 2,691,540 | |||
Consumer Discretionary (12.1%) | ||||
Best Buy Co Inc | 8,000 | 796,720 | ||
Home Depot Inc/The | 3,500 | 929,215 | ||
Lowe's Cos Inc | 7,200 | 1,072,152 | ||
Starbucks Corp | 17,000 | 1,301,010 | ||
Target Corp | 10,000 | 1,258,800 | ||
Yum! Brands Inc | 7,600 | 691,980 | ||
| 6,049,877 | |||
Consumer Staples (6.3%) | ||||
Campbell Soup Co | 17,000 | 842,690 | ||
Kimberly Clark Corp | 6,500 | 988,260 | ||
PepsiCo Inc | 9,500 | 1,307,770 | ||
| 3,138,720 | |||
Financials (11.7%) | ||||
Bank of America Corp | 20,000 | 497,600 | ||
BlackRock Inc | 3,000 | 1,725,030 | ||
JPMorgan Chase & Co | 12,000 | 1,159,680 | ||
PNC Financial Services Group Inc/The | 6,000 | 640,020 | ||
Prudential Financial Inc | 8,000 | 506,960 | ||
S&P Global Inc | 3,700 | 1,295,925 | ||
| 5,825,215 | |||
Health Care (13.5%) | ||||
Becton Dickinson and Co | 3,000 | 844,020 | ||
*Biogen Inc | 2,350 | 645,522 | ||
Bristol Myers Squibb Co | 5,000 | 293,300 | ||
*Edwards Lifesciences Corp | 9,000 | 705,690 | ||
Pfizer Inc | 25,000 | 962,000 | ||
Thermo Fisher Scientific Inc | 5,000 | 2,069,750 | ||
UnitedHealth Group Inc | 4,000 | 1,211,120 | ||
| 6,731,402 | |||
Industrials (8.7%) | ||||
3M Co | 5,500 | 827,585 | ||
Caterpillar Inc | 5,500 | 730,840 | ||
Deere & Co | 3,800 | 669,978 | ||
FedEx Corp | 3,500 | 589,400 | ||
Trane Technologies plc | 6,000 | 671,220 | ||
Waste Management Inc | 8,000 | 876,800 | ||
| 4,365,823 | |||
Information Technology (26.3%) | ||||
*Advanced Micro Devices Inc | 15,000 | 1,161,450 | ||
Apple Inc | 5,000 | 2,125,200 | ||
Cisco Systems Inc | 15,000 | 706,500 | ||
HP Inc | 38,000 | 668,040 | ||
Intel Corp | 24,000 | 1,145,520 | ||
International Business Machines Corp | 6,000 | 737,640 | ||
Intuit Inc | 2,000 | 612,740 | ||
Mastercard Inc | 3,000 | 925,590 | ||
NVIDIA Corp | 4,000 | 1,698,360 | ||
QUALCOMM Inc | 18,800 | 1,985,468 | ||
Visa Inc | 7,000 | 1,332,800 | ||
| 13,099,308 | |||
Materials (2.0%) | ||||
Air Products & Chemicals Inc | 3,500 | 1,003,205 | ||
|
| |||
Utilities (2.8%) | ||||
ALLETE Inc | 9,500 | 563,350 | ||
Exelon Corp | 21,000 | 810,810 | ||
| 1,374,160 | |||
TOTAL COMMON STOCKS (COST: $29,935,861) | $ | 44,279,250 | ||
OTHER ASSETS AND LIABILITIES (11.2%) | $ | 5,601,235 | ||
NET ASSETS (100.0%) | $ | 49,880,485 | ||
* Non-income producing |
The accompanying notes are an integral part of these financial statements.
INTEGRITY HIGH INCOME FUND
PORTFOLIO MARKET SECTORS July 31, 2020
Consumer Discretionary | 25.4% |
Communication Services | 13.7% |
Health Care | 11.8% |
Industrials | 10.8% |
Energy | 9.1% |
Materials | 9.0% |
Cash Equivalents and Other | 6.7% |
Information Technology | 5.2% |
Consumer Staples | 3.6% |
Financials | 2.1% |
Real Estate | 1.3% |
Utilities | 1.3% |
100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS July 31, 2020
Principal | Fair | ||||
Amount |
| Value | |||
CORPORATE BONDS (91.4%) | |||||
Communication Services (13.7%) | |||||
Altice Financing SA - 144A 7.500% 05/15/2026, Callable @ 103.75 5/15/2021 | $ | 200,000 | $ | 215,050 | |
*AMC Entertainment Holdings Inc - 144A 12.000% 06/15/2026, Callable @ 106 6/15/2023 | 25,798 | 9,800 | |||
AMC Entertainment Holdings Inc - 144A 10.500% 04/24/2026, Callable @ 105.25 6/15/2022 | 10,000 | 8,574 | |||
CenturyLink Inc 5.625% 04/01/2025, Callable @ 100 1/1/2025 | 55,000 | 58,713 | |||
CenturyLink Inc 5.800% 03/15/2022 | 40,000 | 41,900 | |||
CenturyLink Inc 7.500% 04/01/2024, Callable @ 100 1/1/2024 | 140,000 | 158,200 | |||
CenturyLink Inc - 144A 4.000% 02/15/2027, Callable @ 102 2/15/2023 | 55,000 | 57,444 | |||
CenturyLink Inc - 144A 5.125% 12/15/2026, Callable @ 102.563 12/15/2022 | 80,000 | 83,751 | |||
Cincinnati Bell Inc - 144A 7.000% 07/15/2024, Callable @ 105.25 9/14/2020 | 70,000 | 72,428 | |||
Cincinnati Bell Inc - 144A 8.000% 10/15/2025, Callable @ 106 10/15/2020 | 10,000 | 10,552 | |||
Cinemark USA Inc - 144A 8.750% 05/01/2025, Callable @ 104.375 5/1/2022 | 18,000 | 18,585 | |||
CSC Holdings LLC - 144A 10.875% 10/15/2025 | 384,000 | 411,686 | |||
Diamond Sports Group LLC / Diamond Sports Finance Co - 144A 5.375% 08/15/2026, Callable @ 102.688 8/15/2022 | 45,000 | 34,653 | |||
DISH Network Corp 3.375% 08/15/2026 | 65,000 | 59,841 | |||
Entercom Media Corp - 144A 6.500% 05/01/2027, Callable @ 104.875 5/1/2022 | 35,000 | 31,238 | |||
(4)Frontier Communications Corp 6.875% 01/15/2025, Callable @ 100 10/15/2024 | 65,000 | 20,150 | |||
(4)Frontier Communications Corp 11.000% 09/15/2025, Callable @ 100 6/15/2025 | 150,000 | 52,500 | |||
(4)Frontier Communications Corp - 144A 8.000% 04/01/2027, Callable @ 106 4/1/2022 | 55,000 | 56,925 | |||
(4)Frontier Communications Corp - 144A 8.500% 04/01/2026, Callable @ 106.375 4/1/2021 | 45,000 | 44,325 | |||
Gray Escrow Inc - 144A 7.000% 05/15/2027, Callable @ 105.25 5/15/2022 | 51,000 | 55,718 | |||
iHeartCommunications Inc 6.375% 05/01/2026, Callable @ 103.1875 5/1/2022 | 10,752 | 11,316 | |||
iHeartCommunications Inc 8.375% 05/01/2027, Callable @ 104.1875 5/1/2022 | 19,489 | 19,458 | |||
iHeartCommunications Inc - 144A 5.250% 08/15/2027, Callable @ 102.625 8/15/2022 | 40,000 | 40,400 | |||
(4)Intelsat Jackson Holdings SA 5.500% 08/01/2023, Callable @ 100.917 9/14/2020 | 146,000 | 91,432 | |||
(4)Intelsat Jackson Holdings SA - 144A 8.000% 02/15/2024, Callable @ 102 9/14/2020 | 70,000 | 71,488 | |||
(4)Intelsat Jackson Holdings SA - 144A 8.500% 10/15/2024, Callable @ 106.375 10/15/2020 | 172,000 | 113,520 | |||
(4)Intelsat Jackson Holdings SA - 144A 9.750% 07/15/2025, Callable @ 104.875 7/15/2021 | 90,000 | 59,850 | |||
*Lamar Media Corp 5.750% 02/01/2026, Callable @ 102.875 2/1/2021 | 70,000 | 73,521 | |||
Level 3 Financing Inc 5.375% 01/15/2024, Callable @ 101.344 9/14/2020 | 35,000 | 35,599 | |||
Level 3 Financing Inc 5.375% 05/01/2025, Callable @ 102.6875 9/14/2020 | 55,000 | 56,787 | |||
Live Nation Entertainment Inc - 144A 4.750% 10/15/2027, Callable @ 103.563 10/15/2022 | 25,000 | 23,094 | |||
Live Nation Entertainment Inc - 144A 4.875% 11/01/2024, Callable @ 103.656 8/20/2020 | 50,000 | 47,250 | |||
Live Nation Entertainment Inc - 144A 6.500% 05/15/2027, Callable @ 104.875 5/15/2023 | 38,000 | 40,850 | |||
Meredith Corp 6.500% 07/01/2025, Callable @ 103.25 7/1/2022 | 100,000 | 101,750 | |||
Meredith Corp 6.875% 02/01/2026, Callable @ 103.438 2/1/2021 | 90,000 | 78,183 | |||
National CineMedia LLC - 144A 5.875% 04/15/2028, Callable @ 102.938 4/15/2023 | 25,000 | 19,937 | |||
Netflix Inc 4.875% 04/15/2028 | 95,000 | 110,430 | |||
Netflix Inc 5.875% 11/15/2028 | 56,000 | 69,160 | |||
Netflix Inc - 144A 4.875% 06/15/2030, Callable @ 100 3/15/2030 | 60,000 | 70,536 | |||
Netflix Inc - 144A 5.375% 11/15/2029 | 40,000 | 48,450 | |||
Nexstar Escrow Inc - 144A 5.625% 07/15/2027, Callable @ 104.219 7/15/2022 | 85,000 | 90,976 | |||
Scripps Escrow Inc - 144A 5.875% 07/15/2027, Callable @ 104.406 7/15/2022 | 20,000 | 20,100 | |||
SFR Group SA - 144A 7.375% 05/01/2026, Callable @ 103.688 5/1/2021 | 200,000 | 213,330 | |||
Sirius XM Radio Inc - 144A 4.625% 07/15/2024, Callable @ 102.313 7/15/2021 | 55,000 | 57,915 | |||
Sprint Capital Corp 6.875% 11/15/2028 | 25,000 | 32,417 | |||
*Sprint Capital Corp 8.750% 03/15/2032 | 326,000 | 502,855 | |||
Sprint Corp 7.125% 06/15/2024 | 30,000 | 34,996 | |||
Sprint Corp 7.625% 02/15/2025, Callable @ 100 11/15/2024 | 315,000 | 382,590 | |||
Sprint Corp 7.625% 03/01/2026, Callable @ 100 11/1/2025 | 110,000 | 137,498 | |||
Sprint Corp 7.875% 09/15/2023 | 215,000 | 249,400 | |||
T Mobile USA Inc - 144A 3.875% 04/15/2030, Callable @ 100 1/15/2030 | 25,000 | 28,631 | |||
T Mobile USA Inc 4.500% 02/01/2026, Callable @ 102.25 2/1/2021 | 30,000 | 30,900 | |||
T Mobile USA Inc 4.750% 02/01/2028, Callable @ 102.375 2/1/2023 | 100,000 | 108,360 | |||
T Mobile USA Inc 6.375% 03/01/2025, Callable @ 103.188 8/25/2020 | 130,000 | 133,450 | |||
T Mobile USA Inc 6.500% 01/15/2026, Callable @ 103.25 1/15/2021 | 120,000 | 126,498 | |||
TEGNA Inc - 144A 4.875% 09/15/2021, Callable @ 100 9/14/2020 | 15,000 | 15,019 | |||
Telecom Italia Capital SA 6.000% 09/30/2034 | 100,000 | 121,197 | |||
Telecom Italia Capital SA 6.375% 11/15/2033 | 12,000 | 14,644 | |||
TripAdvisor Inc - 144A 7.000% 07/15/2025, Callable @ 103.5 7/15/2022 | 4,000 | 4,186 | |||
United States Cellular Corp 6.700% 12/15/2033 | 90,000 | 112,832 | |||
^(4)Windstream Services LLC / Windstream Finance Corp - 144A 9.000% 06/30/2025, Callable @ 104.5 6/30/2021 | 236,000 | 11,800 | |||
| 5,114,638 | ||||
Consumer Discretionary (24.2%) | |||||
Adient US LLC - 144A 7.000% 05/15/2026, Callable @ 103.5 5/15/2022 | 50,000 | 53,625 | |||
Adient US LLC - 144A 9.000% 04/15/2025, Callable @ 104.5 4/15/2022 | 24,000 | 26,670 | |||
Allied Universal Holdco LLC / Allied Universal Finance Corp - 144A 6.625% 07/15/2026, Callable @ 103.313 7/15/2022 | 21,000 | 22,470 | |||
Allison Transmission Inc - 144A 5.875% 06/01/2029, Callable @ 102.9375 6/1/2024 | 30,000 | 33,143 | |||
Alpine Finance Merger Sub LLC - 144A 6.875% 08/01/2025, Callable @ 103.438 9/14/2020 | 25,000 | 25,750 | |||
American Axle & Manufacturing Inc 6.250% 03/15/2026, Callable @ 103.125 3/15/2021 | 100,000 | 100,788 | |||
American Axle & Manufacturing Inc 6.250% 04/01/2025, Callable @ 104.688 9/14/2020 | 62,000 | 64,053 | |||
American Axle & Manufacturing Inc 6.500% 04/01/2027, Callable @ 103.25 4/1/2022 | 45,000 | 46,125 | |||
American Axle & Manufacturing Inc 6.875% 07/01/2028, Callable @ 103.438 7/1/2023 | 25,000 | 25,500 | |||
Aramark Services Inc - 144A 5.000% 02/01/2028, Callable @ 102.5 2/1/2023 | 75,000 | 75,469 | |||
Boyne USA Inc - 144A 7.250% 05/01/2025, Callable @ 103.625 5/1/2021 | 65,000 | 69,469 | |||
Carnival Corp - 144A 10.500% 02/01/2026, Callable @ 105.25 8/1/2023 | 15,000 | 15,525 | |||
Carnival Corp - 144A 11.500% 04/01/2023, Callable @ 100 1/1/2023 | 26,000 | 28,275 | |||
CBS Radio Inc - 144A 7.250% 11/01/2024, Callable @ 105.438 9/14/2020 | 40,000 | 32,900 | |||
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 4.250% 02/01/2031, Callable @ 102.125 7/1/2025 | 108,000 | 112,700 | |||
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 5.000% 02/01/2028, Callable @ 102.5 8/1/2022 | 17,000 | 18,020 | |||
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 5.125% 05/01/2027, Callable @ 102.563 5/1/2022 | 415,000 | 440,289 | |||
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 5.375% 05/01/2025, Callable @ 102.68 9/14/2020 | 15,000 | 15,469 | |||
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 5.500% 05/01/2026, Callable @ 102.75 5/1/2021 | 202,000 | 213,676 | |||
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 5.750% 02/15/2026, Callable @ 102.875 2/15/2021 | 250,000 | 261,875 | |||
*CCO Holdings LLC / CCO Holdings Capital Corp - 144A 5.875% 04/01/2024, Callable @ 102.938 8/20/2020 | 325,000 | 336,278 | |||
CD&R Smokey Buyer Inc - 144A 6.750% 07/15/2025, Callable @ 103.375 7/15/2022 | 10,000 | 10,700 | |||
Cedar Fair LP 5.250% 07/15/2029, Callable @ 102.625 7/15/2024 | 10,000 | 9,447 | |||
Cedar Fair LP / Canada's Wonderland Co / Magnum Management Corp / Millennium Op - 144A 5.500% 05/01/2025, Callable @ 102.75 5/1/2022 | 30,000 | 30,637 | |||
Cinemark USA Inc 4.875% 06/01/2023, Callable @ 100.813 9/14/2020 | 85,000 | 72,250 | |||
Clarios Global LP - 144A 6.750% 05/15/2025, Callable @ 103.375 5/15/2022 | 28,000 | 30,108 | |||
Clear Channel Worldwide Holdings Inc - 144A 5.125% 08/15/2027, Callable @ 102.563 8/15/2022 | 120,000 | 117,600 | |||
Clear Channel Worldwide Holdings Inc - 144A 9.250% 02/15/2024, Callable @ 104.625 2/15/2021 | 173,000 | 155,700 | |||
Constellation Merger Sub Inc - 144A 8.500% 09/15/2025, Callable @ 104.25 9/15/2020 | 55,000 | 45,787 | |||
Cooper- 144A Standard Automotive Inc - 5.625% 11/15/2026, Callable @ 102.813 11/15/2021 | 165,000 | 90,750 | |||
Cooper- 144A Standard Automotive Inc - 13.000% 06/01/2024, Callable @ 106.5 6/1/2022 | 55,000 | 58,644 | |||
Dana Financing Luxembourg Sarl - 144A 6.500% 06/01/2026, Callable @ 103.25 6/1/2021 | 137,000 | 144,193 | |||
Dana Inc 5.375% 11/15/2027, Callable @ 102.688 11/15/2022 | 20,000 | 21,080 | |||
Dana Inc 5.625% 06/15/2028, Callable @ 102.813 6/15/2023 | 12,000 | 12,600 | |||
Delphi Jersey Holdings PLC - 144A 5.000% 10/01/2025 | 165,000 | 182,078 | |||
DISH DBS Corp 5.000% 03/15/2023 | 128,000 | 133,448 | |||
DISH DBS Corp 5.875% 11/15/2024 | 456,000 | 475,471 | |||
DISH DBS Corp 7.750% 07/01/2026 | 130,000 | 146,588 | |||
Energizer Gamma Acquisition Inc - 144A 6.375% 07/15/2026, Callable @ 103.188 7/15/2021 | 5,000 | 5,325 | |||
Expedia Group Inc - 144A 6.250% 05/01/2025, Callable @ 100 2/1/2025 | 30,000 | 32,787 | |||
Expedia Group Inc - 144A 7.000% 05/01/2025, Callable @ 103.5 5/1/2022 | 18,000 | 19,487 | |||
Extended Stay America Inc - 144A 4.625% 10/01/2027, Callable @ 102.313 10/1/2022 | 30,000 | 28,869 | |||
Ford Motor Co 8.500% 04/21/2023 | 35,000 | 38,850 | |||
Ford Motor Co 9.000% 04/22/2025, Callable @ 100 3/22/2025 | 35,000 | 41,234 | |||
Ford Motor Co 9.625% 04/22/2030, Callable @ 100 1/22/2030 | 35,000 | 46,112 | |||
Ford Motor Credit Co LLC 4.271% 01/09/2027, Callable @ 100 11/9/2026 | 200,000 | 203,060 | |||
Ford Motor Credit Co LLC 4.687% 06/09/2025, Callable @ 100 4/9/2025 | 200,000 | 208,720 | |||
Gap Inc/The - 144A 8.375% 05/15/2023 | 45,000 | 49,500 | |||
Gap Inc/The - 144A 8.875% 05/15/2027, Callable @ 104.438 5/15/2023 | 10,000 | 11,175 | |||
*General Motors Co 4.875% 10/02/2023 | 135,000 | 146,926 | |||
GLP Capital LP / GLP Financing II Inc 5.250% 06/01/2025, Callable @ 100 3/1/2025 | 50,000 | 53,855 | |||
GLP Capital LP / GLP Financing II Inc 5.750% 06/01/2028, Callable @ 100 3/3/2028 | 50,000 | 56,505 | |||
Hanesbrands Inc - 144A 4.875% 05/15/2026, Callable @ 100 2/15/2026 | 35,000 | 38,150 | |||
Hilton Domestic Operating Co Inc 4.875% 01/15/2030, Callable @ 102.4375 1/15/2025 | 5,000 | 5,237 | |||
Hilton Domestic Operating Co Inc 5.125% 05/01/2026, Callable @ 102.563 5/1/2021 | 113,000 | 116,955 | |||
Hilton Domestic Operating Co Inc - 144A 5.375% 05/01/2025, Callable @ 102.688 5/1/2022 | 12,000 | 12,546 | |||
Hilton Domestic Operating Co Inc - 144A 5.750% 05/01/2028, Callable @ 102.875 5/1/2023 | 18,000 | 19,215 | |||
Hilton Grand Vacations Borrower LLC/Hilton Grand Vacations Borrower Inc 6.125% 12/01/2024, Callable @ 103.063 12/1/2021 | 75,000 | 75,750 | |||
Hilton Worldwide Finance LLC / Hilton Worldwide Finance Corp 4.625% 04/01/2025, Callable @ 102.312 8/31/2020 | 12,000 | 12,195 | |||
Hilton Worldwide Finance LLC / Hilton Worldwide Finance Corp 4.875% 04/01/2027, Callable @ 102.437 4/1/2022 | 13,000 | 13,504 | |||
Hughes Satellite Systems Corp 6.625% 08/01/2026 | 10,000 | 11,125 | |||
Hyatt Hotels Corp 5.375% 04/23/2025, Callable @ 100 3/23/2025 | 15,000 | 16,117 | |||
Hyatt Hotels Corp 5.750% 04/23/2030, Callable @ 100 1/23/2030 | 15,000 | 17,081 | |||
IRB Holding Corp - 144A 7.000% 06/15/2025, Callable @ 103.5 6/15/2022 | 25,000 | 27,245 | |||
KFC Holding Co/Pizza Hut Holdings LLC/Taco Bell of America LLC - 144A 5.000% 06/01/2024, Callable @ 102.5 9/14/2020 | 25,000 | 25,607 | |||
L Brands Inc 6.750% 07/01/2036 | 40,000 | 38,604 | |||
L Brands Inc - 144A 6.875% 07/01/2025, Callable @ 103.438 7/1/2022 | 7,000 | 7,539 | |||
L Brands Inc - 144A 9.375% 07/01/2025 | 5,000 | 5,575 | |||
LTF Merger Sub Inc - 144A 8.500% 06/15/2023, Callable @ 100 9/14/2020 | 40,000 | 33,200 | |||
Macy's Inc 8.375% 06/15/2025, Callable @ 104.188 6/15/2022 | 49,000 | 51,177 | |||
Marriott International Inc/MD 4.625% 06/15/2030, Callable @ 100 3/15/2030 | 22,000 | 23,579 | |||
Marriott International Inc/MD 5.750% 05/01/2025, Callable @ 100 4/1/2025 | 20,000 | 22,216 | |||
Marriott Ownership Resorts Inc 6.500% 09/15/2026, Callable @ 103.25 9/15/2021 | 86,000 | 88,150 | |||
Marriott Ownership Resorts Inc - 144A 6.125% 09/15/2025, Callable @ 103.063 5/15/2022 | 42,000 | 44,806 | |||
Mattel Inc - 144A 5.875% 12/15/2027, Callable @ 104.406 12/15/2022 | 40,000 | 43,408 | |||
Mattel Inc - 144A 6.750% 12/31/2025, Callable @ 105.063 12/31/2020 | 190,000 | 203,503 | |||
MGM Growth Properties Operating Partnership LP / MGP Finance Co Issuer Inc 4.500% 01/15/2028, Callable @ 100 10/15/2027 | 10,000 | 10,175 | |||
MGM Growth Properties Operating Partnership LP / MGP Finance Co Issuer Inc 4.500% 09/01/2026, Callable @ 100 6/1/2026 | 15,000 | 15,600 | |||
MGM Growth Properties Operating Partnership LP / MGP Finance Co Issuer Inc 4.625% 06/15/2025, Callable @ 100 3/15/2025 | 42,000 | 44,152 | |||
MGM Growth Properties Operating Partnership LP / MGP Finance Co Issuer Inc 5.625% 05/01/2024, Callable @ 100 2/1/2024 | 30,000 | 32,550 | |||
MGM Resorts International 4.625% 09/01/2026, Callable @ 100 6/1/2026 | 35,000 | 33,878 | |||
MGM Resorts International 5.750% 06/15/2025, Callable @ 100 3/15/2025 | 160,000 | 165,200 | |||
*MGM Resorts International 6.000% 03/15/2023 | 245,000 | 256,025 | |||
(1)(4)Neiman Marcus Group LTD LLC / Neiman Marcus Group LLC / Mariposa Borrower / NMG - 144A 8.000% (6.000%) 04/25/2024, Callable @ 107 6/7/2021 | 126,126 | 42,883 | |||
^(4)Neiman Marcus Group LTD LLC / Neiman Marcus Group LLC / Mariposa Borrower / NMG - 144A 8.000% 10/25/2024, Callable @ 100 9/14/2020 | 70,000 | 3,150 | |||
(4)Neiman Marcus Group LTD LLC / Neiman Marcus Group LLC / Mariposa Borrower / NMG - 144A 8.750% 10/25/2024, Callable @ 100 9/14/2020 | 142,995 | 9,295 | |||
Newell Brands Inc 4.200% 04/01/2026, Callable @ 100 1/1/2026 | 43,000 | 46,560 | |||
Newell Brands Inc 4.875% 06/01/2025, Callable @ 100 5/1/2025 | 10,000 | 10,875 | |||
Newell Brands Inc 5.375% 04/01/2036, Callable @ 100 10/1/2035 | 10,000 | 11,300 | |||
Nexstar Broadcasting Inc - 144A 5.625% 08/01/2024, Callable @ 102.813 8/25/2020 | 80,000 | 82,200 | |||
Nielsen Finance LLC / Nielsen Finance Co - 144A 5.000% 04/15/2022, Callable @ 100 9/14/2020 | 65,000 | 65,286 | |||
Nordstrom Inc - 144A 8.750% 05/15/2025, Callable @ 104.375 5/15/2022 | 25,000 | 27,380 | |||
Panther BF Aggregator 2 LP / Panther Finance Co Inc - 144A 6.250% 05/15/2026, Callable @ 103.125 5/15/2022 | 82,000 | 87,750 | |||
PetSmart Inc - 144A 5.875% 06/01/2025, Callable @ 102.938 9/14/2020 | 184,000 | 188,600 | |||
PetSmart Inc - 144A 8.875% 06/01/2025, Callable @ 104.438 8/25/2020 | 50,000 | 51,750 | |||
Photo Holdings Merger Sub Inc - 144A 8.500% 10/01/2026, Callable @ 104.25 10/1/2022 | 145,000 | 134,198 | |||
Royal Caribbean Cruises Ltd - 144A 9.125% 06/15/2023, Callable @ 100 3/15/2023 | 9,000 | 9,202 | |||
Royal Caribbean Cruises Ltd - 144A 10.875% 06/01/2023, Callable @ 100 3/1/2023 | 26,000 | 27,407 | |||
Royal Caribbean Cruises Ltd - 144A 11.500% 06/01/2025, Callable @ 108.625 6/1/2022 | 77,000 | 84,852 | |||
Ryman Hospitality Properties Inc - 144A 4.750% 10/15/2027, Callable @ 103.563 10/15/2022 | 67,000 | 62,498 | |||
Sabre GLBL Inc - 144A 5.250% 11/15/2023, Callable @ 102.625 9/14/2020 | 80,000 | 78,500 | |||
Sabre GLBL Inc - 144A 5.375% 04/15/2023, Callable @ 101.344 9/14/2020 | 65,000 | 63,781 | |||
Service Corp International/US 4.625% 12/15/2027, Callable @ 102.313 12/15/2022 | 40,000 | 42,500 | |||
Service Corp International/US 5.125% 06/01/2029, Callable @ 102.563 6/1/2024 | 38,000 | 41,990 | |||
Service Corp International/US 5.375% 05/15/2024, Callable @ 101.792 9/10/2020 | 15,000 | 15,297 | |||
Service Corp International/US 7.500% 04/01/2027 | 105,000 | 121,800 | |||
Sirius XM Radio Inc - 144A 5.375% 07/15/2026, Callable @ 102.688 7/15/2021 | 65,000 | 68,490 | |||
Six Flags Entertainment Corp - 144A 4.875% 07/31/2024, Callable @ 102.438 9/14/2020 | 75,000 | 71,227 | |||
Six Flags Entertainment Corp - 144A 5.500% 04/15/2027, Callable @ 102.75 4/15/2022 | 30,000 | 28,350 | |||
Six Flags Theme Parks Inc - 144A 7.000% 07/01/2025, Callable @ 103.5 7/1/2022 | 30,000 | 32,199 | |||
Staples Inc - 144A 7.500% 04/15/2026, Callable @ 103.75 4/15/2022 | 160,000 | 140,368 | |||
Staples Inc - 144A 10.750% 04/15/2027, Callable @ 105.375 4/15/2022 | 95,000 | 60,325 | |||
Stars Group Holdings BV / Stars Group US Co- 144A Borrower LLC - 7.000% 07/15/2026, Callable @ 103.5 7/15/2021 | 29,000 | 31,305 | |||
Station Casinos LLC - 144A 4.500% 02/15/2028, Callable @ 102.25 2/15/2023 | 115,000 | 102,925 | |||
Tempur Sealy International Inc 5.500% 06/15/2026, Callable @ 102.75 6/15/2021 | 85,000 | 89,037 | |||
Tempur Sealy International Inc 5.625% 10/15/2023, Callable @ 102.813 9/14/2020 | 70,000 | 71,152 | |||
Tenneco Inc 5.000% 07/15/2026, Callable @ 102.5 7/15/2021 | 88,000 | 58,960 | |||
Tenneco Inc 5.375% 12/15/2024, Callable @ 102.688 9/14/2020 | 35,000 | 23,282 | |||
Vail Resorts Inc - 144A 6.250% 05/15/2025, Callable @ 103.125 5/15/2022 | 23,000 | 24,782 | |||
VICI Properties LP / VICI Note Co Inc 4.250% 12/01/2026, Callable @ 102.125 12/1/2022 | 70,000 | 72,100 | |||
VICI Properties LP / VICI Note Co Inc - 144A 3.750% 02/15/2027, Callable @ 101.875 2/15/2023 | 35,000 | 35,263 | |||
VICI Properties LP / VICI Note Co Inc - 144A 4.125% 08/15/2030, Callable @ 102.063 2/15/2025 | 20,000 | 20,240 | |||
VICI Properties LP / VICI Note Co Inc - 144A 4.625% 12/01/2029, Callable @ 102.313 12/1/2024 | 58,000 | 60,772 | |||
Videotron Ltd - 144A 5.375% 06/15/2024, Callable @ 100 3/15/2024 | 45,000 | 48,825 | |||
Videotron Ltd / Videotron Ltee - 144A 5.125% 04/15/2027, Callable @ 102.563 4/15/2022 | 70,000 | 74,025 | |||
*Vista Outdoor Inc 5.875% 10/01/2023, Callable @ 102.9375 9/14/2020 | 135,000 | 135,000 | |||
William Carter Co/The - 144A 5.625% 03/15/2027, Callable @ 102.813 3/15/2022 | 45,000 | 47,925 | |||
Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp - 144A 5.500% 03/01/2025, Callable @ 100 12/1/2024 | 147,000 | 138,180 | |||
Wynn Resorts Finance LLC / Wynn Resorts Capital Corp - 144A 5.125% 10/01/2029, Callable @ 100 7/1/2029 | 53,000 | 50,747 | |||
Yum! Brands Inc - 144A 7.750% 04/01/2025, Callable @ 103.875 4/1/2022 | 20,000 | 22,450 | |||
| 9,024,602 | ||||
Consumer Staples (3.6%) | |||||
Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC - 144A 4.625% 01/15/2027, Callable @ 103.469 1/15/2023 | 110,000 | 116,325 | |||
Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC - 144A 4.875% 02/15/2030, Callable @ 103.656 2/15/2025 | 35,000 | 37,905 | |||
Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC - 144A 5.875% 02/15/2028, Callable @ 104.406 8/15/2022 | 20,000 | 21,900 | |||
Albertsons Cos LLC / Safeway Inc / New Albertson's Inc / Albertson's LLC 5.750% 03/15/2025, Callable @ 104.313 9/14/2020 | 60,000 | 62,100 | |||
Central Garden & Pet Co 5.125% 02/01/2028, Callable @ 102.563 1/1/2023 | 155,000 | 163,913 | |||
Central Garden & Pet Co 6.125% 11/15/2023, Callable @ 103.063 9/14/2020 | 50,000 | 51,438 | |||
Coty Inc - 144A 6.500% 04/15/2026, Callable @ 104.875 4/15/2021 | 40,000 | 31,205 | |||
Dole Food Co Inc 7.250% 06/15/2025, Callable @ 103.625 9/14/2020 | 19,000 | 18,715 | |||
Edgewell Personal Care Co - 144A 5.500% 06/01/2028, Callable @ 102.75 6/1/2023 | 35,000 | 37,887 | |||
Energizer Holdings Inc - 144A 4.750% 06/15/2028, Callable @ 102.375 6/15/2023 | 55,000 | 58,993 | |||
Energizer Holdings Inc - 144A 7.750% 01/15/2027, Callable @ 103.875 1/15/2022 | 125,000 | 138,775 | |||
^(4)High Ridge Brands Co - 144A 8.875% 03/15/2025, Callable @ 104.438 9/14/2020 | 60,000 | 1,800 | |||
Lamb Weston Holdings Inc - 144A 4.875% 05/15/2028, Callable @ 100 11/15/2027 | 23,000 | 25,846 | |||
Lamb Weston Holdings Inc - 144A 4.875% 11/01/2026, Callable @ 102.438 11/1/2021 | 35,000 | 36,750 | |||
Performance Food Group Inc - 144A 5.500% 10/15/2027, Callable @ 102.75 10/15/2022 | 60,000 | 61,950 | |||
Performance Food Group Inc - 144A 6.875% 05/01/2025, Callable @ 103.438 5/1/2022 | 10,000 | 10,775 | |||
Post Holdings Inc - 144A 5.000% 08/15/2026, Callable @ 102.5 8/15/2021 | 10,000 | 10,480 | |||
Post Holdings Inc - 144A 5.500% 12/15/2029, Callable @ 102.75 12/15/2024 | 20,000 | 21,949 | |||
Post Holdings Inc - 144A 5.625% 01/15/2028, Callable @ 102.813 12/1/2022 | 50,000 | 54,640 | |||
Post Holdings Inc - 144A 5.750% 03/01/2027, Callable @ 102.875 3/1/2022 | 15,000 | 15,975 | |||
Rite Aid Corp - 144A 7.500% 07/01/2025, Callable @ 103.75 7/1/2022 | 58,000 | 58,942 | |||
Rite Aid Corp - 144A 8.000% 11/15/2026, Callable @ 104 1/15/2023 | 81,000 | 83,422 | |||
Spectrum Brands Inc 5.750% 07/15/2025, Callable @ 102.875 9/14/2020 | 120,000 | 123,600 | |||
Spectrum Brands Inc - 144A 5.000% 10/01/2029, Callable @ 102.5 10/1/2024 | 55,000 | 56,650 | |||
Spectrum Brands Inc - 144A 5.500% 07/15/2030, Callable @ 102.75 7/15/2025 | 44,000 | 45,650 | |||
| 1,347,585 | ||||
Energy (9.0%) | |||||
Antero Midstream Partners LP / Antero Midstream Finance Corp 5.375% 09/15/2024, Callable @ 104.031 8/31/2020 | 30,000 | 27,214 | |||
Antero Midstream Partners LP / Antero Midstream Finance Corp - 144A 5.750% 01/15/2028, Callable @ 102.875 1/15/2023 | 60,000 | 51,156 | |||
Antero Resources Corp 5.125% 12/01/2022, Callable @ 100 9/14/2020 | 85,000 | 68,000 | |||
Antero Resources Corp 5.625% 06/01/2023, Callable @ 101.406 9/14/2020 | 35,000 | 25,112 | |||
Baytex Energy Corp - 144A 8.750% 04/01/2027, Callable @ 106.5625 4/1/2023 | 70,000 | 36,225 | |||
Blue Racer Midstream LLC / Blue Racer Finance Corp - 144A 6.125% 11/15/2022, Callable @ 101.531 9/14/2020 | 145,000 | 143,992 | |||
Blue Racer Midstream LLC / Blue Racer Finance Corp - 144A 6.625% 07/15/2026, Callable @ 104.969 7/15/2021 | 25,000 | 21,938 | |||
Boardwalk Pipelines LP 5.950% 06/01/2026, Callable @ 100 3/1/2026 | 40,000 | 47,055 | |||
Buckeye Partners LP 3.950% 12/01/2026, Callable @ 100 9/1/2026 | 30,000 | 29,775 | |||
Buckeye Partners LP 4.125% 12/01/2027, Callable @ 100 9/1/2027 | 15,000 | 14,625 | |||
Buckeye Partners LP - 144A 4.125% 03/01/2025, Callable @ 100 2/1/2025 | 40,000 | 40,200 | |||
Buckeye Partners LP - 144A 4.500% 03/01/2028, Callable @ 100 12/1/2027 | 40,000 | 39,800 | |||
Carrizo Oil & Gas Inc 6.250% 04/15/2023, Callable @ 101.563 9/14/2020 | 35,000 | 11,375 | |||
Carrizo Oil & Gas Inc 8.250% 07/15/2025, Callable @ 106.188 9/14/2020 | 20,000 | 6,000 | |||
Cenovus Energy Inc 5.375% 07/15/2025, Callable @ 100 4/15/2025 | 49,000 | 49,008 | |||
Cheniere Corpus Christi Holdings LLC 5.125% 06/30/2027, Callable @ 100 1/1/2027 | 35,000 | 39,570 | |||
Cheniere Energy Partners LP 4.500% 10/01/2029, Callable @ 102.25 10/1/2024 | 90,000 | 95,202 | |||
^(4)Chesapeake Energy Corp 5.500% 09/15/2026 | 15,000 | 608 | |||
^(4)Chesapeake Energy Corp - 144A 11.500% 01/01/2025, Callable @ 105.75 1/1/2022 | 69,000 | 6,383 | |||
Communications Sales & Leasing Inc / CSL Capital LLC - 144A 7.125% 12/15/2024, Callable @ 105.344 9/14/2020 | 45,000 | 42,412 | |||
Comstock Resources Inc 9.750% 08/15/2026, Callable @ 107.313 8/15/2021 | 50,000 | 49,984 | |||
Covey Park Energy LLC / Covey Park Finance Corp - 144A 7.500% 05/15/2025, Callable @ 105.625 9/14/2020 | 88,000 | 82,720 | |||
Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp 6.250% 04/01/2023, Callable @ 101.563 8/31/2020 | 85,000 | 82,237 | |||
Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp - 144A 5.625% 05/01/2027, Callable @ 102.813 5/1/2022 | 35,000 | 32,725 | |||
DCP Midstream Operating LP 5.375% 07/15/2025, Callable @ 100 4/15/2025 | 20,000 | 21,060 | |||
DCP Midstream Operating LP 5.625% 07/15/2027, Callable @ 100 4/15/2027 | 30,000 | 31,125 | |||
(4)Denbury Resources Inc - 144A 9.250% 03/31/2022, Callable @ 104.625 9/14/2020 | 73,000 | 30,843 | |||
Endeavor Energy Resources LP / EER Finance Inc 6.625% 07/15/2025, Callable @ 103.313 7/15/2022 | 24,000 | 25,215 | |||
EnLink Midstream LLC 5.375% 06/01/2029, Callable @ 100 3/1/2029 | 16,000 | 12,787 | |||
EnLink Midstream Partners LP 4.150% 06/01/2025, Callable @ 100 3/1/2025 | 10,000 | 8,012 | |||
EnLink Midstream Partners LP 4.400% 04/01/2024, Callable @ 100 1/1/2024 | 65,000 | 55,830 | |||
EnLink Midstream Partners LP 4.850% 07/15/2026, Callable @ 100 4/15/2026 | 25,000 | 19,378 | |||
^(4)EP Energy LLC / Everest Acquisition Finance Inc - 144A 7.750% 05/15/2026, Callable @ 105.813 5/15/2021 | 185,000 | 49,488 | |||
^(4)EP Energy LLC / Everest Acquisition Finance Inc - 144A 8.000% 02/15/2025, Callable @ 106 9/14/2020 | 25,000 | 38 | |||
^(4)EP Energy LLC / Everest Acquisition Finance Inc - 144A 8.000% 11/29/2024, Callable @ 106 9/14/2020 | 40,000 | 400 | |||
^(4)EP Energy LLC / Everest Acquisition Finance Inc - 144A 9.375% 05/01/2024, Callable @ 107.031 9/14/2020 | 115,000 | 12 | |||
EQM Midstream Partners LP - 144A 6.000% 07/01/2025, Callable @ 100 4/1/2025 | 25,000 | 26,517 | |||
EQM Midstream Partners LP - 144A 6.500% 07/01/2027, Callable @ 100 1/1/2027 | 25,000 | 27,565 | |||
EQT Corp 6.125% 02/01/2025, Callable @ 100 1/1/2025 | 35,000 | 38,369 | |||
GCI Inc 6.875% 04/15/2025, Callable @ 103.438 9/14/2020 | 40,000 | 41,450 | |||
GCI LLC - 144A 6.625% 06/15/2024, Callable @ 103.313 6/15/2021 | 30,000 | 31,581 | |||
Genesis Energy LP / Genesis Energy Finance Corp 6.250% 05/15/2026, Callable @ 104.688 2/15/2021 | 10,000 | 9,375 | |||
Genesis Energy LP / Genesis Energy Finance Corp 7.750% 02/01/2028, Callable @ 105.813 2/1/2023 | 41,000 | 39,541 | |||
Gulfport Energy Corp 6.000% 10/15/2024, Callable @ 104.5 9/14/2020 | 35,000 | 18,327 | |||
Gulfport Energy Corp 6.375% 01/15/2026, Callable @ 104.781 1/15/2021 | 65,000 | 32,500 | |||
Gulfport Energy Corp 6.375% 05/15/2025, Callable @ 104.781 9/14/2020 | 49,000 | 23,520 | |||
Gulfport Energy Corp 6.625% 05/01/2023, Callable @ 101.656 9/14/2020 | 10,000 | 5,917 | |||
Hess Infrastructure Partners LP / Hess Infrastructure Partners Finance Corp 5.625% 02/15/2026, Callable @ 104.219 2/15/2021 | 25,000 | 25,932 | |||
Holly Energy Partners LP / Holly Energy Finance Corp - 144A 5.000% 02/01/2028, Callable @ 103.75 2/1/2023 | 35,000 | 34,584 | |||
Jagged Peak Energy LLC 5.875% 05/01/2026, Callable @ 102.938 5/1/2021 | 30,000 | 30,600 | |||
MEG Energy Corp - 144A 6.500% 01/15/2025, Callable @ 104.875 9/14/2020 | 79,000 | 77,618 | |||
MEG Energy Corp - 144A 7.000% 03/31/2024, Callable @ 102.333 9/14/2020 | 10,000 | 9,525 | |||
MEG Energy Corp - 144A 7.125% 02/01/2027, Callable @ 103.563 2/1/2023 | 52,000 | 46,280 | |||
MPLX LP 4.875% 06/01/2025, Callable @ 100 3/1/2025 | 25,000 | 28,330 | |||
Nabors Industries Inc 5.750% 02/01/2025, Callable @ 100 11/1/2024 | 60,000 | 23,700 | |||
Nabors Industries Ltd - 144A 7.250% 01/15/2026, Callable @ 105.438 7/15/2022 | 30,000 | 18,900 | |||
Newfield Exploration Co 5.750% 01/30/2022 | 35,000 | 35,526 | |||
NGPL PipeCo LLC - 144A 4.375% 08/15/2022, Callable @ 100 5/15/2022 | 45,000 | 46,669 | |||
NGPL PipeCo LLC - 144A 4.875% 08/15/2027, Callable @ 100 2/15/2027 | 10,000 | 11,064 | |||
^Oasis Petroleum Inc 2.625% 09/15/2023 | 20,000 | 2,300 | |||
Oasis Petroleum Inc 6.875% 01/15/2023, Callable @ 100 9/14/2020 | 83,000 | 15,977 | |||
^Oasis Petroleum Inc - 144A 6.250% 05/01/2026, Callable @ 103.125 5/1/2021 | 78,000 | 13,845 | |||
Occidental Petroleum Corp 2.700% 08/15/2022 | 10,000 | 9,660 | |||
Occidental Petroleum Corp 8.000% 07/15/2025, Callable @ 100 4/15/2025 | 43,000 | 46,977 | |||
Occidental Petroleum Corp 8.500% 07/15/2027, Callable @ 100 1/15/2027 | 46,000 | 51,226 | |||
Occidental Petroleum Corp 8.875% 07/15/2030, Callable @ 100 1/15/2030 | 56,000 | 63,000 | |||
Parsley Energy LLC / Parsley Finance Corp - 144A 5.250% 08/15/2025, Callable @ 103.938 9/14/2020 | 55,000 | 55,825 | |||
Parsley Energy LLC / Parsley Finance Corp - 144A 5.375% 01/15/2025, Callable @ 104.031 9/14/2020 | 20,000 | 20,594 | |||
PBF Holding Co LLC / PBF Finance Corp - 144A 6.000% 02/15/2028, Callable @ 103 2/15/2023 | 35,000 | 28,060 | |||
PBF Holding Co LLC / PBF Finance Corp - 144A 9.250% 05/15/2025, Callable @ 104.625 5/15/2022 | 18,000 | 20,115 | |||
Precision Drilling Corp 6.500% 12/15/2021, Callable @ 100 8/27/2020 | 1,876 | 1,782 | |||
Precision Drilling Corp 7.750% 12/15/2023, Callable @ 103.875 8/31/2020 | 45,000 | 33,750 | |||
Precision Drilling Corp - 144A 7.125% 01/15/2026, Callable @ 105.344 11/15/2020 | 35,000 | 24,150 | |||
Range Resources Corp 4.875% 05/15/2025, Callable @ 100 2/15/2025 | 80,000 | 67,000 | |||
Sabine Pass Liquefaction LLC 5.875% 06/30/2026, Callable @ 100 12/31/2025 | 15,000 | 18,076 | |||
SM Energy Co 5.625% 06/01/2025, Callable @ 102.813 9/14/2020 | 30,000 | 15,600 | |||
SM Energy Co 6.125% 11/15/2022, Callable @ 101.531 9/14/2020 | 53,000 | 39,220 | |||
SM Energy Co 6.625% 01/15/2027, Callable @ 104.969 1/15/2022 | 34,000 | 16,745 | |||
Southwestern Energy Co 6.700% 01/23/2025, Callable @ 100 10/23/2024 | 83,000 | 76,664 | |||
Southwestern Energy Co 7.500% 04/01/2026, Callable @ 105.625 4/1/2021 | 9,000 | 8,444 | |||
Southwestern Energy Co 7.750% 10/01/2027, Callable @ 103.875 10/1/2022 | 20,000 | 18,806 | |||
Summit Midstream Holdings LLC / Summit Midstream Finance Corp 5.750% 04/15/2025, Callable @ 104.313 9/14/2020 | 30,000 | 14,700 | |||
Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp - 144A 5.500% 01/15/2028, Callable @ 102.75 1/15/2023 | 55,000 | 48,943 | |||
Targa Resources Partners LP / Targa Resources Partners Finance Corp 4.250% 11/15/2023, Callable @ 100.708 9/14/2020 | 10,000 | 10,075 | |||
Targa Resources Partners LP / Targa Resources Partners Finance Corp 5.000% 01/15/2028, Callable @ 102.5 1/15/2023 | 40,000 | 40,800 | |||
Targa Resources Partners LP / Targa Resources Partners Finance Corp 5.875% 04/15/2026, Callable @ 104.406 4/15/2021 | 40,000 | 42,511 | |||
Targa Resources Partners LP / Targa Resources Partners Finance Corp 6.500% 07/15/2027, Callable @ 104.875 7/15/2022 | 108,000 | 115,560 | |||
Targa Resources Partners LP / Targa Resources Partners Finance Corp 6.750% 03/15/2024, Callable @ 103.375 9/14/2020 | 95,000 | 97,252 | |||
Targa Resources Partners LP / Targa Resources Partners Finance Corp 6.875% 01/15/2029, Callable @ 103.438 1/15/2024 | 38,000 | 42,869 | |||
Tesoro Logistics LP / Tesoro Logistics Finance Corp 5.250% 01/15/2025, Callable @ 102.625 1/15/2021 | 25,000 | 26,047 | |||
Tesoro Logistics LP / Tesoro Logistics Finance Corp 6.250% 10/15/2022, Callable @ 101.563 8/31/2020 | 11,000 | 11,105 | |||
Tesoro Logistics LP / Tesoro Logistics Finance Corp 6.375% 05/01/2024, Callable @ 103.188 8/31/2020 | 25,000 | 25,775 | |||
Transocean Guardian Ltd - 144A 5.875% 01/15/2024, Callable @ 102.938 7/15/2021 | 29,640 | 26,083 | |||
Transocean Inc - 144A 7.250% 11/01/2025, Callable @ 103.625 11/1/2021 | 40,000 | 19,600 | |||
Transocean Inc - 144A 7.500% 01/15/2026, Callable @ 105.625 1/15/2021 | 40,000 | 19,600 | |||
Transocean Inc - 144A 8.000% 02/01/2027, Callable @ 104 2/1/2023 | 70,000 | 34,146 | |||
Transocean Pontus Ltd - 144A 6.125% 08/01/2025, Callable @ 104.594 8/1/2021 | 38,410 | 35,433 | |||
(4)Whiting Petroleum Corp 5.750% 03/15/2021, Callable @ 100 12/15/2020 | 15,000 | 2,550 | |||
(4)Whiting Petroleum Corp 6.250% 04/01/2023, Callable @ 100 1/1/2023 | 40,000 | 7,200 | |||
(4)Whiting Petroleum Corp 6.625% 01/15/2026, Callable @ 100 10/15/2025 | 80,000 | 13,800 | |||
WPX Energy Inc 5.750% 06/01/2026, Callable @ 104.313 6/1/2021 | 24,000 | 24,330 | |||
WPX Energy Inc 5.875% 06/15/2028, Callable @ 102.938 6/15/2023 | 21,000 | 21,512 | |||
WPX Energy Inc 8.250% 08/01/2023, Callable @ 100 6/1/2023 | 38,000 | 42,560 | |||
| 3,351,161 | ||||
Financials (2.1%) | |||||
Adient Global Holdings Ltd - 144A 4.875% 08/15/2026, Callable @ 102.438 8/15/2021 | 240,000 | 224,100 | |||
Ally Financial Inc 5.750% 11/20/2025, Callable @ 100 10/21/2025 | 90,000 | 101,622 | |||
(2)Citigroup Inc (ICE LIBOR USD 3 Month + 3.905%), Callable @ 100 5/15/2025 | 10,000 | 10,675 | |||
Diamond 1 Finance Corp / Diamond 2 Finance Corp - 144A 5.450% 06/15/2023, Callable @ 100 4/15/2023 | 60,000 | 66,112 | |||
Diamond 1 Finance Corp / Diamond 2 Finance Corp - 144A 5.875% 06/15/2021, Callable @ 100 8/31/2020 | 13,000 | 13,016 | |||
Diamond 1 Finance Corp / Diamond 2 Finance Corp - 144A 6.020% 06/15/2026, Callable @ 100 3/15/2026 | 75,000 | 87,943 | |||
Financial & Risk US Holdings Inc - 144A 6.250% 05/15/2026, Callable @ 103.125 11/15/2021 | 30,000 | 32,437 | |||
LPL Holdings Inc - 144A 4.625% 11/15/2027, Callable @ 102.313 11/15/2022 | 30,000 | 30,900 | |||
Nationstar Mortgage Holdings Inc - 144A 6.000% 01/15/2027, Callable @ 103 1/15/2023 | 10,000 | 10,200 | |||
Nielsen Co Luxembourg SARL/The - 144A 5.500% 10/01/2021, Callable @ 100 9/14/2020 | 14,000 | 14,053 | |||
PetSmart Inc - 144A 7.125% 03/15/2023, Callable @ 101.781 9/14/2020 | 130,000 | 131,300 | |||
Quicken Loans Inc - 144A 5.250% 01/15/2028, Callable @ 102.625 1/15/2023 | 10,000 | 10,801 | |||
Springleaf Finance Corp 5.375% 11/15/2029, Callable @ 100 5/15/2029 | 30,000 | 31,653 | |||
Springleaf Finance Corp 6.625% 01/15/2028, Callable @ 100 7/15/2027 | 24,000 | 27,503 | |||
| 792,315 | ||||
Health Care (11.7%) | |||||
Acadia Healthcare Co Inc - 144A 5.500% 07/01/2028, Callable @ 102.75 7/1/2023 | 32,000 | 33,720 | |||
Avantor Funding Inc - 144A 4.625% 07/15/2028, Callable @ 102.313 7/15/2023 | 49,000 | 51,769 | |||
Avantor Inc - 144A 6.000% 10/01/2024, Callable @ 104.5 10/1/2020 | 75,000 | 78,937 | |||
Bausch Health Americas Inc - 144A 9.250% 04/01/2026, Callable @ 104.625 4/1/2022 | 30,000 | 33,741 | |||
Bausch Health Cos Inc - 144A 5.000% 01/30/2028, Callable @ 102.5 1/30/2023 | 36,000 | 36,179 | |||
Bausch Health Cos Inc - 144A 5.250% 01/30/2030, Callable @ 102.625 1/30/2025 | 36,000 | 36,765 | |||
Bausch Health Cos Inc - 144A 7.000% 01/15/2028, Callable @ 103.5 1/15/2023 | 45,000 | 48,938 | |||
BCPE Cycle Merger Sub II Inc - 144A 10.625% 07/15/2027, Callable @ 105.313 7/15/2022 | 55,000 | 58,575 | |||
Centene Corp 4.250% 12/15/2027, Callable @ 102.125 12/15/2022 | 119,000 | 126,438 | |||
Centene Corp 4.625% 12/15/2029, Callable @ 102.313 12/15/2024 | 133,000 | 148,330 | |||
CHS/Community Health Systems Inc - 144A 8.625% 01/15/2024, Callable @ 104.313 1/15/2021 | 78,000 | 80,340 | |||
DaVita Inc 5.000% 05/01/2025, Callable @ 102.5 8/21/2020 | 189,000 | 194,198 | |||
Encompass Health Corp 4.500% 02/01/2028, Callable @ 102.25 2/1/2023 | 55,000 | 57,475 | |||
Enterprise Merger Sub Inc - 144A 8.750% 10/15/2026, Callable @ 104.375 10/15/2021 | 135,000 | 54,000 | |||
HCA Inc 3.500% 09/01/2030, Callable @ 100 3/1/2030 | 95,000 | 99,846 | |||
*HCA Inc 5.375% 02/01/2025 | 555,000 | 625,763 | |||
HCA Inc 5.375% 09/01/2026, Callable @ 100 3/1/2026 | 31,000 | 35,418 | |||
HCA Inc 5.625% 09/01/2028, Callable @ 100 3/1/2028 | 60,000 | 71,550 | |||
HCA Inc 5.875% 02/15/2026, Callable @ 100 8/15/2025 | 280,000 | 327,684 | |||
HealthSouth Corp 5.750% 09/15/2025, Callable @ 102.875 9/15/2020 | 55,000 | 56,923 | |||
HealthSouth Corp 5.750% 11/01/2024, Callable @ 100.958 9/14/2020 | 71,000 | 71,710 | |||
Hill- 144A Rom Holdings Inc - 5.000% 02/15/2025, Callable @ 103.75 9/14/2020 | 45,000 | 46,575 | |||
Hologic Inc - 144A 4.375% 10/15/2025, Callable @ 102.188 10/15/2020 | 35,000 | 35,875 | |||
Jaguar Holding Co II / Pharmaceutical Product Development LLC - 144A 4.625% 06/15/2025, Callable @ 102.313 6/15/2022 | 17,000 | 17,765 | |||
Jaguar Holding Co II / Pharmaceutical Product Development LLC - 144A 5.000% 06/15/2028, Callable @ 102.5 6/15/2023 | 15,000 | 15,970 | |||
Mallinckrodt International Finance SA / Mallinckrodt CB LLC - 144A 5.500% 04/15/2025, Callable @ 102.75 9/14/2020 | 45,000 | 7,875 | |||
Mallinckrodt International Finance SA / Mallinckrodt CB LLC - 144A 5.625% 10/15/2023, Callable @ 102.813 9/14/2020 | 60,000 | 9,600 | |||
Par Pharmaceutical Inc - 144A 7.500% 04/01/2027, Callable @ 105.625 4/1/2022 | 75,000 | 79,772 | |||
Prestige Brands Inc - 144A 6.375% 03/01/2024, Callable @ 103.188 9/14/2020 | 55,000 | 56,925 | |||
Radiology Partners Inc - 144A 9.250% 02/01/2028, Callable @ 104.625 2/1/2023 | 45,000 | 45,113 | |||
Tenet Healthcare Corp 4.625% 06/15/2028, Callable @ 102.313 6/15/2023 | 18,000 | 18,931 | |||
Tenet Healthcare Corp 4.875% 01/01/2026, Callable @ 102.438 3/1/2022 | 305,000 | 319,018 | |||
Tenet Healthcare Corp 5.125% 11/01/2027, Callable @ 102.563 11/1/2022 | 85,000 | 90,206 | |||
*Tenet Healthcare Corp 6.750% 06/15/2023 | 95,000 | 100,225 | |||
Tenet Healthcare Corp 7.000% 08/01/2025, Callable @ 103.5 9/14/2020 | 20,000 | 20,646 | |||
Tenet Healthcare Corp - 144A 6.250% 02/01/2027, Callable @ 103.125 2/1/2022 | 117,000 | 124,279 | |||
Tenet Healthcare Corp - 144A 7.500% 04/01/2025, Callable @ 103.75 4/1/2022 | 30,000 | 33,187 | |||
Valeant Pharmaceuticals International Inc - 144A 5.500% 11/01/2025, Callable @ 102.75 11/1/2020 | 75,000 | 77,828 | |||
Valeant Pharmaceuticals International Inc - 144A 5.875% 05/15/2023, Callable @ 100 9/14/2020 | 5,000 | 5,000 | |||
Valeant Pharmaceuticals International Inc - 144A 6.125% 04/15/2025, Callable @ 103.063 9/14/2020 | 315,000 | 325,238 | |||
Valeant Pharmaceuticals International Inc - 144A 7.000% 03/15/2024, Callable @ 103.5 9/14/2020 | 145,000 | 151,522 | |||
Valeant Pharmaceuticals International Inc - 144A 8.500% 01/31/2027, Callable @ 104.25 7/31/2022 | 99,000 | 110,138 | |||
Valeant Pharmaceuticals International Inc - 144A 9.000% 12/15/2025, Callable @ 104.5 12/15/2021 | 290,000 | 320,450 | |||
| 4,340,437 | ||||
Industrials (10.8%) | |||||
ACCO BRANDS CORP - 144A 5.250% 12/15/2024, Callable @ 103.938 9/14/2020 | 135,000 | 138,375 | |||
ADT Security Corp/The - 144A 4.875% 07/15/2032 | 18,000 | 18,090 | |||
Advanced Drainage Systems Inc - 144A 5.000% 09/30/2027, Callable @ 102.5 9/30/2022 | 20,000 | 20,600 | |||
Allison Transmission Inc - 144A 5.000% 10/01/2024, Callable @ 102.5 8/25/2020 | 100,000 | 101,925 | |||
American Woodmark Corp - 144A 4.875% 03/15/2026, Callable @ 102.438 3/15/2021 | 100,000 | 100,500 | |||
Arconic Corp - 144A 6.000% 05/15/2025, Callable @ 103 5/15/2022 | 48,000 | 51,750 | |||
Arconic Inc 5.125% 10/01/2024, Callable @ 100 7/1/2024 | 10,000 | 10,626 | |||
Arconic Inc 5.900% 02/01/2027 | 95,000 | 105,690 | |||
Arconic Rolled Products Corp - 144A 6.125% 02/15/2028, Callable @ 103.063 2/15/2023 | 30,000 | 31,912 | |||
Ashtead Capital Inc - 144A 4.125% 08/15/2025, Callable @ 103.094 8/31/2020 | 200,000 | 206,000 | |||
Avis Budget Car Rental LLC / Avis Budget Finance Inc - 144A 5.250% 03/15/2025, Callable @ 102.625 9/14/2020 | 75,000 | 70,500 | |||
Avis Budget Car Rental LLC / Avis Budget Finance Inc - 144A 5.750% 07/15/2027, Callable @ 102.875 7/15/2022 | 5,000 | 4,675 | |||
Avis Budget Car Rental LLC / Avis Budget Finance Inc - 144A 6.375% 04/01/2024, Callable @ 103.188 9/14/2020 | 160,000 | 152,800 | |||
Avis Budget Car Rental LLC / Avis Budget Finance Inc - 144A 10.500% 05/15/2025, Callable @ 107.875 5/15/2022 | 85,000 | 98,600 | |||
Bombardier Inc - 144A 7.500% 03/15/2025, Callable @ 103.75 9/14/2020 | 90,000 | 72,675 | |||
Brink's Co/The - 144A 5.500% 07/15/2025, Callable @ 102.75 7/15/2022 | 40,000 | 42,500 | |||
BWX Technologies Inc - 144A 4.125% 06/30/2028, Callable @ 102.063 6/30/2023 | 29,000 | 30,160 | |||
BWX Technologies Inc - 144A 5.375% 07/15/2026, Callable @ 102.688 7/15/2021 | 50,000 | 52,250 | |||
Clean Harbors Inc - 144A 4.875% 07/15/2027, Callable @ 102.438 7/15/2022 | 20,000 | 21,202 | |||
EnPro Industries Inc 5.750% 10/15/2026, Callable @ 104.313 10/15/2021 | 41,000 | 42,435 | |||
General Motors Co 6.125% 10/01/2025, Callable @ 100 9/1/2025 | 30,000 | 35,066 | |||
General Motors Co 6.800% 10/01/2027, Callable @ 100 8/1/2027 | 30,000 | 36,531 | |||
#GPC Merger Sub Inc - 144A 7.125% 08/15/2028, Callable @ 103.563 8/15/2023 | 14,000 | 14,560 | |||
Griffon Corp 5.750% 03/01/2028, Callable @ 102.875 3/1/2023 | 75,000 | 78,375 | |||
Herc Holdings Inc - 144A 5.500% 07/15/2027, Callable @ 102.75 7/15/2022 | 115,000 | 121,613 | |||
(4)Hertz Corp/The 6.250% 10/15/2022, Callable @ 101.042 9/14/2020 | 25,000 | 9,875 | |||
(4)Hertz Corp/The - 144A 5.500% 10/15/2024, Callable @ 104.125 8/25/2020 | 148,000 | 58,460 | |||
(4)Hertz Corp/The - 144A 6.000% 01/15/2028, Callable @ 103 1/15/2023 | 20,000 | 7,900 | |||
(4)Hertz Corp/The - 144A 7.125% 08/01/2026, Callable @ 103.563 8/1/2022 | 80,000 | 31,081 | |||
(4)Hertz Corp/The - 144A 7.625% 06/01/2022, Callable @ 101.906 9/14/2020 | 33,000 | 29,215 | |||
Hexion Inc - 144A 7.875% 07/15/2027, Callable @ 103.938 7/15/2022 | 65,000 | 64,513 | |||
Hillman Group Inc/The - 144A 6.375% 07/15/2022, Callable @ 100 9/14/2020 | 120,000 | 117,600 | |||
Howmet Aerospace Inc 6.875% 05/01/2025, Callable @ 100 4/1/2025 | 20,000 | 22,713 | |||
Jeld-Wen Inc - 144A 4.625% 12/15/2025, Callable @ 102.313 12/15/2020 | 45,000 | 45,450 | |||
Jeld-Wen Inc - 144A 4.875% 12/15/2027, Callable @ 102.438 12/15/2022 | 45,000 | 45,787 | |||
Jeld-Wen Inc - 144A 6.250% 05/15/2025, Callable @ 103.124 5/15/2022 | 25,000 | 26,750 | |||
Manitowoc Foodservice Inc 9.500% 02/15/2024, Callable @ 104.75 9/14/2020 | 50,000 | 47,250 | |||
Masonite International Corp - 144A 5.375% 02/01/2028, Callable @ 102.688 2/1/2023 | 50,000 | 53,250 | |||
#MasTec Inc - 144A 4.500% 08/15/2028, Callable @ 102.25 8/15/2023 | 54,000 | 56,430 | |||
Mileage Plus Holdings LLC / Mileage Plus Intellectual Property Assets Ltd - 144A 6.500% 06/20/2027, Callable @ 103.25 6/30/2023 | 90,000 | 93,150 | |||
Mueller Water Products Inc - 144A 5.500% 06/15/2026, Callable @ 102.75 6/15/2021 | 25,000 | 26,267 | |||
PGT Escrow Issuer Inc - 144A 6.750% 08/01/2026, Callable @ 105.063 8/1/2021 | 45,000 | 46,800 | |||
RBS Global Inc / Rexnord LLC - 144A 4.875% 12/15/2025, Callable @ 102.438 12/15/2020 | 20,000 | 20,550 | |||
Sensata Technologies BV - 144A 4.875% 10/15/2023 | 180,000 | 189,225 | |||
Sensata Technologies BV - 144A 5.000% 10/01/2025 | 2,000 | 2,160 | |||
Spirit AeroSystems Inc - 144A 7.500% 04/15/2025, Callable @ 103.75 4/15/2022 | 48,000 | 47,174 | |||
SPX FLOW Inc - 144A 5.625% 08/15/2024, Callable @ 102.813 8/15/2020 | 20,000 | 20,574 | |||
SPX FLOW Inc - 144A 5.875% 08/15/2026, Callable @ 102.938 8/15/2021 | 45,000 | 47,138 | |||
Standard Industries Inc/NJ - 144A 4.750% 01/15/2028, Callable @ 102.375 1/15/2023 | 90,000 | 96,187 | |||
Standard Industries Inc/NJ - 144A 5.000% 02/15/2027, Callable @ 102.5 2/15/2022 | 35,000 | 37,188 | |||
Stevens Holding Co Inc - 144A 6.125% 10/01/2026, Callable @ 101.531 10/1/2023 | 40,000 | 42,800 | |||
Terex Corp - 144A 5.625% 02/01/2025, Callable @ 104.219 9/4/2020 | 120,000 | 121,666 | |||
TransDigm Inc - 144A 6.250% 03/15/2026, Callable @ 103.125 3/15/2022 | 70,000 | 73,850 | |||
TriMas Corp - 144A 4.875% 10/15/2025, Callable @ 102.438 10/15/2020 | 60,000 | 61,369 | |||
Triumph Group Inc 7.750% 08/15/2025, Callable @ 105.813 9/14/2020 | 75,000 | 48,589 | |||
Triumph Group Inc - 144A 6.250% 09/15/2024, Callable @ 103.125 9/15/2020 | 10,000 | 8,825 | |||
United Rentals North America Inc 4.625% 10/15/2025, Callable @ 102.313 10/15/2020 | 70,000 | 72,013 | |||
United Rentals North America Inc 4.875% 01/15/2028, Callable @ 102.438 1/15/2023 | 15,000 | 16,106 | |||
United Rentals North America Inc 5.500% 05/15/2027, Callable @ 102.75 5/15/2022 | 90,000 | 96,862 | |||
United Rentals North America Inc 5.500% 07/15/2025, Callable @ 102.75 8/28/2020 | 35,000 | 36,001 | |||
United Rentals North America Inc 5.875% 09/15/2026, Callable @ 102.938 9/15/2021 | 35,000 | 37,363 | |||
United Rentals North America Inc 6.500% 12/15/2026 | 75,000 | 83,250 | |||
Wabash National Corp - 144A 5.500% 10/01/2025, Callable @ 102.75 10/1/2020 | 90,000 | 87,525 | |||
WESCO Distribution Inc - 144A 7.125% 06/15/2025, Callable @ 103.563 6/15/2022 | 60,000 | 65,843 | |||
WESCO Distribution Inc - 144A 7.250% 06/15/2028, Callable @ 103.625 6/15/2023 | 60,000 | 65,550 | |||
Wolverine Escrow LLC - 144A 9.000% 11/15/2026, Callable @ 106.75 11/15/2022 | 110,000 | 79,750 | |||
Wolverine Escrow LLC - 144A 13.125% 11/15/2027, Callable @ 109.844 11/15/2022 | 40,000 | 26,400 | |||
XPO Logistics Inc - 144A 6.125% 09/01/2023, Callable @ 101.531 9/14/2020 | 20,000 | 20,394 | |||
XPO Logistics Inc - 144A 6.500% 06/15/2022, Callable @ 100 9/14/2020 | 68,000 | 68,170 | |||
| 4,014,423 | ||||
Information Technology (5.2%) | |||||
ACI Worldwide Inc - 144A 5.750% 08/15/2026, Callable @ 104.313 8/15/2021 | 64,000 | 66,720 | |||
Ascend Learning LLC - 144A 6.875% 08/01/2025, Callable @ 103.438 9/14/2020 | 42,000 | 43,050 | |||
BY Crown Parent LLC / BY Bond Finance Inc - 144A 4.250% 01/31/2026, Callable @ 102.125 7/31/2022 | 29,000 | 30,060 | |||
CDK Global Inc - 144A 5.250% 05/15/2029, Callable @ 102.625 5/15/2024 | 27,000 | 29,566 | |||
CDW LLC / CDW Finance Corp 4.250% 04/01/2028, Callable @ 102.125 10/1/2022 | 55,000 | 58,770 | |||
CDW LLC / CDW Finance Corp 5.000% 09/01/2025, Callable @ 103.75 9/9/2020 | 126,000 | 130,410 | |||
Cogent Communications Group Inc - 144A 5.375% 03/01/2022, Callable @ 100 12/1/2021 | 70,000 | 72,975 | |||
CommScope Finance LLC - 144A 6.000% 03/01/2026, Callable @ 103 3/1/2022 | 125,000 | 133,359 | |||
CommScope Finance LLC - 144A 8.250% 03/01/2027, Callable @ 104.125 3/1/2022 | 90,000 | 97,056 | |||
CommScope Technologies Finance LLC - 144A 6.000% 06/15/2025, Callable @ 103 8/25/2020 | 119,000 | 121,582 | |||
Dell International LLC / EMC Corp 5.850% 07/15/2025, Callable @ 100 6/15/2025 | 8,000 | 9,356 | |||
Dell International LLC / EMC Corp 6.100% 07/15/2027, Callable @ 100 5/15/2027 | 15,000 | 17,732 | |||
Dell International LLC / EMC Corp 6.200% 07/15/2030, Callable @ 100 4/15/2030 | 15,000 | 18,308 | |||
Diebold Nixdorf Inc - 144A 9.375% 07/15/2025, Callable @ 104.688 7/15/2022 | 8,000 | 8,462 | |||
Entegris Inc - 144A 4.625% 02/10/2026, Callable @ 103.469 11/10/2020 | 100,000 | 103,912 | |||
Gartner Inc - 144A 4.500% 07/01/2028, Callable @ 102.25 7/1/2023 | 10,000 | 10,500 | |||
Gartner Inc - 144A 5.125% 04/01/2025, Callable @ 103.844 8/25/2020 | 105,000 | 108,548 | |||
Magnachip Semiconductor Corp 6.625% 07/15/2021, Callable @ 100 9/14/2020 | 50,000 | 49,690 | |||
Microchip Technology Inc - 144A 4.250% 09/01/2025, Callable @ 102.125 9/1/2022 | 22,000 | 23,127 | |||
MTS Systems Corp - 144A 5.750% 08/15/2027, Callable @ 102.875 8/15/2022 | 25,000 | 24,336 | |||
NCR Corp - 144A 5.750% 09/01/2027, Callable @ 102.875 9/1/2022 | 80,000 | 82,600 | |||
NCR Corp - 144A 6.125% 09/01/2029, Callable @ 103.063 9/1/2024 | 75,000 | 82,159 | |||
NCR Corp - 144A 8.125% 04/15/2025, Callable @ 104.063 4/15/2022 | 24,000 | 26,633 | |||
Nuance Communications Inc 5.625% 12/15/2026, Callable @ 102.813 12/15/2021 | 20,000 | 21,325 | |||
Plantronics Inc - 144A 5.500% 05/31/2023, Callable @ 101.375 9/14/2020 | 85,000 | 80,342 | |||
Presidio Holdings Inc - 144A 4.875% 02/01/2027, Callable @ 102.438 2/1/2023 | 30,000 | 30,600 | |||
Sabine Pass Liquefaction LLC 6.250% 03/15/2022, Callable @ 100 12/15/2021 | 100,000 | 106,913 | |||
Sabre GLBL Inc - 144A 9.250% 04/15/2025, Callable @ 100 3/16/2025 | 30,000 | 33,037 | |||
Science Applications International Corp - 144A 4.875% 04/01/2028, Callable @ 102.438 4/1/2023 | 15,000 | 15,713 | |||
Sinclair Television Group Inc - 144A 5.125% 02/15/2027, Callable @ 102.563 8/15/2021 | 20,000 | 19,575 | |||
Sinclair Television Group Inc - 144A 5.625% 08/01/2024, Callable @ 101.875 8/31/2020 | 20,000 | 20,225 | |||
SS&C Technologies Inc - 144A 5.500% 09/30/2027, Callable @ 104.125 3/30/2022 | 35,000 | 37,581 | |||
Vertical US Newco Inc 5.250% 07/15/2027, Callable @ 102.625 7/15/2023 | 200,000 | 212,000 | |||
| 1,926,222 | ||||
Materials (8.5%) | |||||
Alcoa Nederland Holding BV - 144A 7.000% 09/30/2026, Callable @ 103.5 9/30/2021 | 200,000 | 214,000 | |||
Allegheny Technologies Inc 5.875% 12/01/2027, Callable @ 102.938 12/1/2022 | 31,000 | 29,373 | |||
Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc - 144A 5.250% 08/15/2027, Callable @ 102.625 8/15/2022 | 200,000 | 209,354 | |||
Axalta Coating Systems LLC - 144A 4.875% 08/15/2024, Callable @ 102.438 8/25/2020 | 150,000 | 153,750 | |||
Berry Global Escrow Corp - 144A 4.875% 07/15/2026, Callable @ 102.438 7/15/2022 | 90,000 | 95,062 | |||
Boise Cascade Co - 144A 4.875% 07/01/2030, Callable @ 102.438 7/1/2025 | 10,000 | 10,600 | |||
BWAY Holding Co - 144A 5.500% 04/15/2024, Callable @ 102.75 9/14/2020 | 122,000 | 124,389 | |||
Carpenter Technology Corp 6.375% 07/15/2028, Callable @ 103.188 7/15/2023 | 30,000 | 31,512 | |||
Chemours Co/The 5.375% 05/15/2027, Callable @ 100 2/15/2027 | 5,000 | 4,899 | |||
Chemours Co/The 6.625% 05/15/2023, Callable @ 101.656 9/14/2020 | 80,000 | 80,000 | |||
Chemours Co/The 7.000% 05/15/2025, Callable @ 103.5 9/14/2020 | 75,000 | 76,125 | |||
Cheniere Corpus Christi Holdings LLC 5.875% 03/31/2025, Callable @ 100 10/2/2024 | 55,000 | 62,714 | |||
Forterra Finance LLC / FRTA Finance Corp 6.500% 07/15/2025, Callable @ 103.25 7/15/2022 | 30,000 | 31,800 | |||
Freeport McMoRan Inc 4.125% 03/01/2028, Callable @ 102.063 3/1/2023 | 66,000 | 69,382 | |||
Freeport McMoRan Inc 4.375% 08/01/2028, Callable @ 102.188 8/1/2023 | 37,000 | 39,231 | |||
GCP Applied Technologies Inc - 144A 5.500% 04/15/2026, Callable @ 102.75 4/15/2021 | 140,000 | 142,800 | |||
Greif Inc - 144A 6.500% 03/01/2027, Callable @ 103.25 3/1/2022 | 65,000 | 69,063 | |||
Huntsman International LLC 5.125% 11/15/2022, Callable @ 100 8/15/2022 | 100,000 | 106,450 | |||
*INEOS Group Holdings SA - 144A 5.625% 08/01/2024, Callable @ 101.406 9/14/2020 | 200,000 | 200,754 | |||
LABL Escrow Issuer LLC - 144A 6.750% 07/15/2026, Callable @ 103.375 7/15/2022 | 120,000 | 129,600 | |||
LABL Escrow Issuer LLC - 144A 10.500% 07/15/2027, Callable @ 105.25 7/15/2022 | 45,000 | 49,145 | |||
Mauser Packaging Solutions Holding Co - 144A 7.250% 04/15/2025, Callable @ 103.625 9/14/2020 | 95,000 | 91,200 | |||
NOVA Chemicals Corp - 144A 4.875% 06/01/2024, Callable @ 100 3/3/2024 | 30,000 | 29,985 | |||
NOVA Chemicals Corp - 144A 5.250% 06/01/2027, Callable @ 100 3/3/2027 | 70,000 | 66,238 | |||
Novelis Corp - 144A 4.750% 01/30/2030, Callable @ 102.375 1/30/2025 | 45,000 | 46,947 | |||
Novelis Corp - 144A 5.875% 09/30/2026, Callable @ 102.938 9/30/2021 | 45,000 | 48,011 | |||
Owens- 144A Brockway Glass Container Inc - 6.625% 05/13/2027, Callable @ 103.313 5/15/2023 | 48,000 | 51,960 | |||
Rain CII Carbon LLC / CII Carbon Corp - 144A 7.250% 04/01/2025, Callable @ 105.438 9/14/2020 | 75,000 | 73,688 | |||
+^(4)Reichhold Industries Inc - 144A .000% 05/08/2040 | 97,425 | 0 | |||
Scotts Miracle Gro Co/The 4.500% 10/15/2029, Callable @ 102.25 10/15/2024 | 14,000 | 14,823 | |||
Scotts Miracle Gro Co/The 5.250% 12/15/2026, Callable @ 102.625 12/15/2021 | 135,000 | 144,450 | |||
Starfruit Finco BV / Starfruit US Holdco LLC - 144A 8.000% 10/01/2026, Callable @ 104 10/1/2021 | 150,000 | 159,750 | |||
#Summit Materials LLC / Summit Materials Finance Corp - 144A 5.250% 01/15/2029, Callable @ 102.625 7/15/2023 | 19,000 | 19,713 | |||
Trinseo Materials Operating SCA / Trinseo Materials Finance Inc - 144A 5.375% 09/01/2025, Callable @ 102.688 9/14/2020 | 110,000 | 108,625 | |||
Trivium Packaging Finance BV - 144A 5.500% 08/15/2026, Callable @ 102.75 8/15/2022 | 200,000 | 213,060 | |||
United States Steel Corp - 144A 12.000% 06/01/2025, Callable @ 106 6/1/2022 | 35,000 | 36,393 | |||
Valvoline Inc - 144A 4.250% 02/15/2030, Callable @ 102.125 2/15/2025 | 35,000 | 36,794 | |||
Venator Finance S.a r.l. / Venator Materials Corp - 144A 5.750% 07/15/2025, Callable @ 104.313 9/14/2020 | 50,000 | 37,187 | |||
Venator Finance Sarl / Venator Materials LLC - 144A 9.500% 07/01/2025, Callable @ 107.125 7/1/2022 | 40,000 | 41,200 | |||
WR Grace & Co- 144A Conn - 5.625% 10/01/2024 | 10,000 | 10,825 | |||
| 3,160,852 | ||||
Real Estate (1.3%) | |||||
Communications Sales & Leasing Inc / CSL Capital LLC 8.250% 10/15/2023, Callable @ 102.063 9/14/2020 | 21,000 | 20,370 | |||
Communications Sales & Leasing Inc / CSL Capital LLC - 144A 6.000% 04/15/2023, Callable @ 103 9/14/2020 | 30,000 | 30,150 | |||
Corrections Corp of America 4.625% 05/01/2023, Callable @ 100 2/1/2023 | 88,000 | 85,580 | |||
Corrections Corp of America 5.000% 10/15/2022, Callable @ 100 7/15/2022 | 25,000 | 24,387 | |||
ESH Hospitality Inc - 144A 5.250% 05/01/2025, Callable @ 102.625 9/14/2020 | 70,000 | 71,506 | |||
GEO Group Inc/The 5.125% 04/01/2023, Callable @ 100.854 9/14/2020 | 20,000 | 17,050 | |||
GEO Group Inc/The 5.875% 01/15/2022, Callable @ 100 9/14/2020 | 65,000 | 61,750 | |||
GEO Group Inc/The 5.875% 10/15/2024, Callable @ 102.938 9/14/2020 | 60,000 | 47,550 | |||
MGM Growth Properties Operating Partnership LP / MGP Finance Co Issuer Inc 5.750% 02/01/2027, Callable @ 100 11/1/2026 | 37,000 | 40,053 | |||
Outfront Media Capital LLC / Outfront Media Capital Corp - 144A 5.000% 08/15/2027, Callable @ 102.5 8/15/2022 | 40,000 | 39,165 | |||
RHP Hotel Properties LP / RHP Finance Corp 5.000% 04/15/2023, Callable @ 101.25 9/14/2020 | 65,000 | 63,213 | |||
| 500,774 | ||||
Utilities (1.3%) | |||||
AES Corp/VA 5.500% 04/15/2025, Callable @ 102.75 9/14/2020 | 75,000 | 77,250 | |||
AES Corp/VA 6.000% 05/15/2026, Callable @ 103 5/15/2021 | 10,000 | 10,575 | |||
AmeriGas Partners LP / AmeriGas Finance Corp 5.500% 05/20/2025, Callable @ 100 2/20/2025 | 40,000 | 43,200 | |||
AmeriGas Partners LP / AmeriGas Finance Corp 5.875% 08/20/2026, Callable @ 100 5/20/2026 | 70,000 | 77,242 | |||
#Calpine Corp - 144A 4.625% 02/01/2029, Callable @ 102.313 2/1/2024 | 24,000 | 24,239 | |||
#Calpine Corp - 144A 5.000% 02/01/2031, Callable @ 102.5 2/1/2026 | 30,000 | 30,746 | |||
Calpine Corp - 144A 5.250% 06/01/2026, Callable @ 102.625 6/1/2021 | 20,000 | 20,800 | |||
NRG Energy Inc 6.625% 01/15/2027, Callable @ 103.313 7/15/2021 | 35,000 | 37,275 | |||
NRG Energy Inc 7.250% 05/15/2026, Callable @ 103.625 5/15/2021 | 40,000 | 43,140 | |||
PG&E Corp 5.000% 07/01/2028, Callable @ 102.5 7/1/2023 | 40,000 | 41,158 | |||
PG&E Corp 5.250% 07/01/2030, Callable @ 102.625 7/1/2025 | 10,000 | 10,400 | |||
Vistra Operations Co LLC - 144A 5.625% 02/15/2027, Callable @ 102.813 2/15/2022 | 47,000 | 50,429 | |||
| 466,454 | ||||
TOTAL CORPORATE BONDS (COST: $34,966,793) | $ | 34,039,463 | |||
COMMON STOCKS (1.5%) | |||||
Communication Services (0.0%) | Shares | ||||
(3)iHeartMedia Inc | 223 | $ | 1,864 | ||
Consumer Discretionary (0.9%) | |||||
+^(3)Claire's Stores | 58 | $ | 31,900 | ||
(3)Clear Channel Outdoor Holdings Inc | 4640 | 4,253 | |||
VICI Properties, Inc | 13506 | 293,215 | |||
| 329,368 | ||||
Energy (0.0%) | |||||
(3)Battalion Oil Corp | 424 | $ | 3,659 | ||
Health Care (0.1%) | |||||
+^International Oncology Care Inc | 1,631 | $ | 27,287 | ||
Industrials (0.0%) | |||||
+^(3)Remington Outdoor Co | 1,284 | $ | 2,568 | ||
+^(3)Remington Outdoor Com | 125,000 |
| 0 | ||
2,568 | |||||
Material (0.5%) | |||||
+^(3)UCI International Holdings | 2,633 | $ | 59,243 | ||
+^(3)Reichhold Cayman | 162 |
| 140,778 | ||
| 200,021 | ||||
TOTAL COMMON STOCK (COST: $639,376) | $ | 564,767 | |||
CONVERTIBLE PREFERRED STOCKS (0.3%) | |||||
Consumer Discretionary (0.3%) | Shares | ||||
+^Claire's Stores Inc 14.000% | 39 | $ | 68,250 | ||
Myt Holding Co - 144A | 63,473 |
| 56,491 | ||
| 124,741 | ||||
|
| ||||
TOTAL CONVERTIBLE PREFERRED STOCK (COST: $95,535) | $ | 124,741 | |||
WARRANTS (0.0%) | |||||
Communication Services (0.0%) | Shares | ||||
+^(3)iHeartMedia | 1,679 | $ | 12,592 | ||
Industrials (0.0%) | |||||
+^(3)Remington Outdoor Co | 1,295 | $ | 0 | ||
TOTAL WARRANTS (COST: $39,600) | $ | 12,592 | |||
TOTAL INVESTMENTS IN SECURITIES (COST: $35,741,304) (93.3%) | $ | 34,741,563 | |||
OTHER ASSETS LESS LIABILITIES (6.7%) | $ | 2,484,111 | |||
NET ASSETS (100%) | $ | 37,225,674 | |||
| |||||
| |||||
(1) Interest or dividend is paid-in-kind, when applicable. Rate paid in-kind is shown in parenthesis. |
| ||||
(2) Security is perpetual and thus, does not have a predetermined maturity date. The coupon rate for this security is fixed for a period of time and may be structured to adjust thereafter. The date shown, if applicable, reflects the next call date. The coupon rate shown is the rate in effect as of July 31, 2020. |
| ||||
(3) Non-income producing security. |
| ||||
(4) Issue is in default. |
| ||||
+ The level 3 assets were a result of unavailable quoted prices from and active market or the unavailability of other significant observable inputs. See Note 3. |
| ||||
*Indicates all or a portion of bonds are segregated by the custodian to cover when-issued or delayed-delivery purchases when they occur. |
| ||||
^ Deemed by management to be illiquid security. See Note 2. Total fair value of illiquid securities amount to $432,439, representing 1.2% of net assets as of July 31, 2020. |
| ||||
#When-issued purdchase as of July 31, 2020. | |||||
144A - Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid under procedures approved by the Fund’s Board of Trustees and may normally be sold to qualified institutional buyers in transactions exempt from registration. Total fair value of Rule 144A Securities amounts to $19,533,151, representing 52.5% of net assets as of July 31, 2020. |
| ||||
PLC - Public Limited Company | |||||
LIBOR - London InterBank Offered Rate | |||||
The accompanying notes are an integral part of these financial statements.
INTEGRITY MID-NORTH AMERICAN RESOURCES FUND
PORTFOLIO MARKET SECTORS July 31, 2020
Energy | 82.4% |
Utilities | 10.0% |
Cash Equivalents and Other | 3.8% |
Information Technologies | 2.2% |
Industrials | 1.6% |
100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS July 31, 2020
Fair | ||||
Shares |
| Value | ||
COMMON STOCKS (96.2%) | ||||
Energy (82.4%) | ||||
Archrock Inc | 660,000 | $ | 4,395,600 | |
Baker Hughes a GE Co | 50,000 | 774,500 | ||
BP PLC ADR | 30,000 | 661,200 | ||
Cabot Oil & Gas Corp | 200,000 | 3,740,000 | ||
Cactus Inc | 175,000 | 3,958,500 | ||
*Championx Corp | 390,000 | 3,708,900 | ||
*Cheniere Energy Inc | 60,000 | 2,968,800 | ||
Chevron Corp | 10,000 | 839,400 | ||
Concho Resources Inc | 35,000 | 1,838,900 | ||
ConocoPhillips | 69,000 | 2,579,910 | ||
Diamondback Energy Inc | 20,000 | 797,200 | ||
DMC Global Inc | 65,000 | 1,909,700 | ||
*Dril Quip Inc | 35,000 | 1,165,150 | ||
EOG Resources Inc | 21,000 | 983,850 | ||
EQT Corp | 50,000 | 726,000 | ||
Euronav NV | 80,000 | 783,200 | ||
Helmerich & Payne Inc | 65,000 | 1,158,950 | ||
Hess Corp | 40,000 | 1,968,400 | ||
HollyFrontier Corp | 100,000 | 2,750,000 | ||
Kinder Morgan Inc/DE | 240,000 | 3,384,000 | ||
*Magnolia Oil & Gas Corp | 205,000 | 1,225,900 | ||
Marathon Petroleum Corp | 10,000 | 382,000 | ||
*Montage Resources Corp | 200,000 | 858,000 | ||
Parsley Energy Inc | 430,000 | 4,721,400 | ||
Pembina Pipeline Corp | 70,000 | 1,703,800 | ||
Phillips 66 | 70,000 | 4,341,400 | ||
Pioneer Natural Resources Co | 15,000 | 1,453,800 | ||
*ProPetro Holding Corp | 330,000 | 1,772,100 | ||
Royal Dutch Shell PLC ADR | 30,000 | 849,000 | ||
Scorpio Tankers Inc | 30,000 | 396,600 | ||
Solaris Oilfield Infrastructure Inc | 120,000 | 871,200 | ||
Suncor Energy Inc | 60,000 | 945,600 | ||
TechnipFMC | 290,000 | 2,328,700 | ||
TransCanada Corp | 78,000 | 3,556,800 | ||
Valero Energy Corp | 60,000 | 3,373,800 | ||
Williams Cos Inc/The | 160,000 | 3,060,800 | ||
| 72,933,060 | |||
Industrials (1.6%) | ||||
Union Pacific Corp | 8,000 |
| 1,386,800 | |
Information Technologies (2.2%) | ||||
*First Solar Inc | 15,000 | 893,250 | ||
*SolarEdge Technologies Inc | 6,000 | 1,050,600 | ||
| 1,943,850 | |||
Utilities (10.0%) | ||||
Alliant Energy Corp | 45,000 | 2,423,250 | ||
Exelon Corp | 60,000 | 2,316,600 | ||
*Sunnova Energy International Inc | 65,000 | 1,625,650 | ||
WEC Energy Group Inc | 19,000 | 1,809,940 | ||
Xcel Energy Inc | 10,000 |
| 690,400 | |
| 8,865,840 | |||
TOTAL COMMON STOCKS (COST: $96,150,847) | $ | 85,129,550 | ||
OTHER ASSETS AND LIABILITIES (3.8%) | $ | 3,354,043 | ||
NET ASSETS (100.0%) | $ | 88,483,593 | ||
* Non-income producing | ||||
PLC - Public Limited Company | ||||
ADR - American Depositary Receipt |
The accompanying notes are an integral part of these financial statements.
INTEGRITY SHORT TERM GOVERNMENT FUND
PORTFOLIO MARKET SECTORS July 31, 2020
Mortgage Backed Securities | 102.7% |
Short-Term Investments | 10.5% |
U.S. Government Notes/Bonds | 1.0% |
Cash Equivalents and Other | -14.2% |
100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS July 31, 2020
Principal | Fair | |||
Amount | Value | |||
MORTGAGE BACKED SECURITIES (102.7%) | ||||
Fannie Mae Pool (46.3%) | ||||
AS9698, 3.500%, 05/01/2032 | $ | 465,847 | $ | 493,434 |
47935, 4.853%, (11th District Cost of Funds Index + 1.250%), 05/01/2027 (a) | 885 | 893 | ||
252284, 6.500%, 01/01/2029 | 63,382 | 72,563 | ||
323591, 6.500%, 03/01/2029 | 14,599 | 16,322 | ||
555326, 5.500%, 04/01/2033 | 132,859 | 154,921 | ||
555531, 5.500%, 06/01/2033 | 117,955 | 137,670 | ||
555592, 5.500%, 07/01/2033 | 32,136 | 37,560 | ||
AL5259, 3.500%, 05/01/2029 | 217,326 | 229,509 | ||
AL6206, 3.500%, 06/01/2028 | 302,784 | 318,146 | ||
AL8046, 3.500%, 01/01/2028 | 566,084 | 594,508 | ||
AL7654, 3.000%, 09/01/2035 | 243,850 | 259,076 | ||
AL9858, 3.000%, 03/01/2030 | 237,066 | 248,955 | ||
AL9541, 3.500%, 12/01/2026 | 143,400 | 150,512 | ||
AS5093, 2.500%, 06/01/2030 | 584,208 | 623,852 | ||
AS7644, 2.500%, 08/01/2031 | 561,281 | 589,858 | ||
745751, 5.500%, 09/01/2035 | 29,994 | 35,081 | ||
748375, 1.961%, (12 Month LIBOR USD + 1.119%), 08/01/2033 (a) | 1,443 | 1,459 | ||
BJ0664, 3.000%, 03/01/2033 | 170,485 | 181,363 | ||
BK5090, 4.500%, 05/01/2048 | 140,364 | 150,975 | ||
BM1244, 3.500%, 06/01/2032 | 322,491 | 340,612 | ||
BM1231, 3.500%, 11/01/2031 | 343,451 | 362,637 | ||
BM3428, 3.500%, 01/01/2033 | 113,787 | 120,465 | ||
BM4202, 3.500%, 12/01/2029 | 146,072 | 154,233 | ||
BN6656, 3.500%, 05/01/2034 | 438,151 | 459,604 | ||
BP8780, 3.000%, 07/01/2050 | 499,789 | 531,814 | ||
CA1939, 4.000%, 06/01/2028 | 328,318 | 350,264 | ||
FM1487, 4.000%, 09/01/2039 | 74,577 | 80,191 | ||
FM2209, 3.500%, 01/01/2035 | 168,912 | 178,333 | ||
FNCI, 2.000%, 04/25/2035 | 3,000,000 | 3,121,389 | ||
FNCL, 2.500%, 09/25/2043 | 1,710,000 | 1,796,569 | ||
888073, 5.500%, 02/01/2035 | 22,681 | 26,467 | ||
890156, 5.000%, 05/01/2023 | 2,904 | 3,050 | ||
995865, 4.500%, 07/01/2024 | 51,953 | 54,834 | ||
MA0949, 3.500%, 01/01/2032 | 93,872 | 101,391 | ||
MA2709, 2.500%, 08/01/2031 | 698,402 | 733,887 | ||
MA3067, 3.500%, 07/01/2047 | 368,003 | 382,287 | ||
MA3071, 4.000%, 07/01/2037 | 202,427 | 217,846 | ||
MA3101, 4.500%, 08/01/2047 | 245,428 | 265,481 | ||
MA3689, 4.000%, 05/01/2029 | 225,427 | 240,514 | ||
MA3986, 3.500%, 04/01/2035 | 479,928 | 504,590 | ||
MA4045, 2.000%, 06/01/2040 | 396,861 | 408,279 | ||
MA4076, 3.000%, 07/01/2035 | 495,752 | 521,136 | ||
MA4054, 2.500%,06/01/2040 | 396,664 | 416,838 | ||
MA4094, 2.500%, 08/01/2040 | 400,000 | 420,344 | ||
| 16,089,712 | |||
Fannie Mae REMICS (0.0%) | ||||
2005-62CQ, 4.750%, 07/25/2035 | 1,901 | 1,924 | ||
|
| |||
Fannie Mae-Aces (2.8%) | ||||
2011-M4A2, 3.726%, 06/25/2021 | 160,366 | 162,890 | ||
2011-M8A2, 2.922%, 08/25/2021 | 178,300 | 180,899 | ||
2013-M13APT, 2.447%, 09/25/2020 (b) | 45,842 | 45,847 | ||
2015-M3X2, 0.407%, 10/25/2024 (b)(c) | 11,469,966 | 231,395 | ||
2019-M24XA, 1.2841%, 03/25/2029 (b)(c) | 3,998,545 | 370,681 | ||
| 991,712 | |||
FHLMC-GNMA (0.1%) | ||||
G023FC, 0.62163%, (1 Month LIBOR USD + 0.450%), 11/25/2023 (a) | 45,220 | 45,208 | ||
|
| |||
Freddie Mac Pool (5.4%) | ||||
ZS8598, 3.000%, 02/01/2031 | 331,000 | 348,078 | ||
ZS8670, 3.500%, 09/01/2032 | 383,872 | 404,960 | ||
ZS8686, 3.000%, 02/01/2033 | 272,804 | 286,364 | ||
ZT1348, 3.500%, 10/01/2038 | 228,951 | 241,314 | ||
SB8042, 3.500%, 04/01/2035 | 469,449 | 493,532 | ||
RB5012, 3.500%, 10/01/2039 | 82,025 |
| 86,929 | |
| 1,861,177 | |||
Freddie Mac Gold Pool (14.1%) | ||||
G01584, 5.000%, 08/01/2033 | 56,993 | 65,286 | ||
NB0014, 3.500%, 04/01/2049 | 426,297 | 449,652 | ||
G30289, 7.000%, 09/01/2025 | 40,307 | 41,955 | ||
G04913, 5.000%, 03/01/2038 | 53,026 | 60,886 | ||
G13272, 4.500%, 08/01/2020 | 4 | 4 | ||
G13390, 6.000%, 01/01/2024 | 13,537 | 14,026 | ||
G13007, 5.000%, 03/01/2023 | 18,158 | 19,086 | ||
G13610, 5.500%, 02/01/2024 | 13,198 | 13,805 | ||
G13692, 5.500%, 02/01/2024 | 6,970 | 7,239 | ||
G14160, 6.000%, 01/01/2024 | 651 | 657 | ||
G14350, 4.000%, 12/01/2026 | 63,110 | 66,969 | ||
G14441, 4.000%, 03/01/2027 | 149,904 | 159,265 | ||
G14904, 4.500%, 12/01/2021 | 643 | 675 | ||
G16406, 3.000%, 01/01/2028 | 159,937 | 167,844 | ||
G16502, 3.500%, 05/01/2033 | 318,380 | 335,263 | ||
G18524, 3.000%, 09/01/2029 | 285,514 | 300,132 | ||
G18601, 3.000%, 05/01/2031 | 380,413 | 400,169 | ||
G18605, 3.000%, 06/01/2031 | 251,855 | 264,660 | ||
G18596, 3.000%, 04/01/2031 | 986,369 | 1,037,752 | ||
G18612, 3.000%, 09/01/2031 | 427,519 | 450,314 | ||
G18655, 3.000%, 08/01/2032 | 440,607 | 462,389 | ||
C91993, 3.500%, 05/01/2038 | 440,788 | 464,250 | ||
J12635, 4.000%, 07/01/2025 | 39,719 | 42,054 | ||
J13273, 3.500%, 10/01/2025 | 61,673 | 64,741 | ||
H09207, 6.500%, 08/01/2038 | 16,289 | 18,200 | ||
| 4,907,273 | |||
Freddie Mac Multifamily Structured Pass Through Certificates (13.2%) | ||||
K023X1, 1.229438%, 08/25/2022 (b)(c) | 4,353,521 | 89,182 | ||
K030A1, 2.779%, 09/25/2022 | 254,710 | 260,556 | ||
K714X1, 0.981811%, 10/25/2020 (b)(c) | 2,943,546 | 29 | ||
Q001A1, 1.701% 04/25/2021 | 140,375 | 140,868 | ||
K720X1, 0.520804%, 08/25/2022 (b)(c) | 9,039,930 | 64,798 | ||
K057X1, 1.188898%, 07/25/2026 (b)(c) | 2,656,412 | 157,472 | ||
K724X1, 0.265971%, 11/25/2023 (b)(c) | 4,925,540 | 37,390 | ||
K064X1, 0.605928%, 03/25/2027 (b)(c) | 2,795,025 | 99,377 | ||
Q004A2H, 3.001516%, 01/25/2046 (b) | 457,943 | 451,917 | ||
KI01A, 0.32225%, (1 Month LIBOR USD + 0.160%), 09/25/2022 (a) | 47,487 | 47,325 | ||
Q007APT1, 2.975851%, 10/25/2047 (b) | 152,835 | 158,198 | ||
Q009A, 0.51225%, (1 Month LIBOR USD + 0.350%), 04/25/2024 (a) | 400,364 | 399,797 | ||
K736X1, 1.311917%, 07/25/2026 (b)(c) | 6,478,293 | 422,197 | ||
KJ27A1, 2.092%, 07/25/2024 | 114,611 | 118,440 | ||
K737X1, 0.638144%, 10/25/2026 (b)(c) | 4,336,370 | 149,353 | ||
KJ28A1, 1.766%, 02/25/2025 | 382,979 | 396,411 | ||
K105X1, 1.64517%, 01/25/2030 (b)(c) | 4,019,141 | 497,067 | ||
K1515X1, 1.51326%, 02/25/2035 (b)(c) | 2,334,854 | 378,543 | ||
K111X1, 1.68199%, 05/25/2030 (b)(c) | 3,080,000 | 400,699 | ||
K1516X1, 1.63124%, 05/25/2035 (b)(c) | 1,795,000 | 300,530 | ||
| 4,570,149 | |||
Freddie Mac REMICS (1.4%) | ||||
2344ZD, 6.500%, 08/15/2031 | 16,365 | 19,043 | ||
3784PD, 4.000%, 01/15/2026 | 15,833 | 16,474 | ||
4818BD, 3.500%, 03/15/2045 | 174,378 | 181,804 | ||
4824KQ, 4.000%, 06/15/2046 | 249,269 | 260,440 | ||
2649WA, 3.500%, 07/15/2023 | 2,015 | 2,019 | ||
2824EB, 5.000% 07/15/2024 | 2,593 | 2,735 | ||
| 482,515 | |||
Freddie Mac Structured Pass Through Certificates (0.7%) | ||||
2017-SR01A2, 2.750%, 11/25/2022 | 250,000 |
| 255,929 | |
FRESB Mortgage Trust (5.1%) | ||||
2016-SB13A5H, 2.060%, (1 Month LIBOR USD + 0.700%), 01/25/2036 (a) | 303,874 | 304,758 | ||
2016-SB16A5H, 2.130%, (1 Month LIBOR USD + 0.700%), 05/25/2036 (a) | 329,021 | 329,643 | ||
2015-SB7A5, 2.370%, (1 Month LIBOR USD + 0.700%), 09/25/2035 (a) | 438,323 | 439,260 | ||
2015-SB2A5, 2.086%, (1 Month LIBOR USD + 0.700%), 07/25/2035 (a) | 183,812 | 183,949 | ||
2015-SB3A5, 0.86225%, (1 Month LIBOR USD + 0.700%), 08/25/2042 (a) | 3,935 | 3,933 | ||
2019-SB60A5H, 3.070%, (1 Month LIBOR USD + 0.700%), 01/25/2039 (a) | 480,129 | 504,354 | ||
| 1,765,897 | |||
Ginnie Mae I Pool (1.3%) | ||||
741854, 4.000%, 05/15/2025 | 74,065 | 78,295 | ||
782618, 4.50%, 04/15/2024 | 137,888 | 144,271 | ||
MA5468, 5.000%, 09/20/2048 | 217,501 | 236,192 | ||
| 458,758 | |||
Government National Mortgage Association (11.9%) | ||||
2013-7IO, 0.32735%, 05/16/2053 (b)(c) | 6,224,052 | 113,601 | ||
2013-1IO, 0.6254%, 02/16/2054 (b)(c) | 4,087,056 | 119,142 | ||
2013-15IO, 0.62443%, 08/16/2051 (b)(c) | 4,684,350 | 123,067 | ||
2013-17IO, 0.68985%, 06/16/2054 (b)(c) | 5,323,727 | 125,017 | ||
2013-40IO, 0.73288%, 06/16/2054 (b)(c) | 3,866,346 | 124,643 | ||
2013-55AB, 1.5787%, 12/16/2042 | 246,861 | 247,729 | ||
2013-105IO, 0.4155%, 06/16/2054 (b)(c) | 3,314,308 | 41,343 | ||
2013-107ID, 0.401%, 11/16/2047 (b)(c) | 3,739,162 | 49,163 | ||
2013-101A, 0.51424%, 05/16/2035 | 107,687 | 107,417 | ||
2013-101IO, 0.42549%, 10/16/2054 (b)(c) | 4,316,875 | 83,108 | ||
2014-54IO, 0.40224%, 09/16/2055 (b)(c) | 4,573,108 | 106,947 | ||
2014-73IO, 0.56512%, 04/16/2056 (b)(c) | 4,693,663 | 122,425 | ||
2013-156IO, 0.64949%, 06/16/2055 (b)(c) | 4,703,988 | 118,235 | ||
2014-1IO, 0.32401%, 09/16/2055 (b)(c) | 5,843,742 | 109,547 | ||
2013-116KM, 3.000%, 09/20/2041 | 374,444 | 380,961 | ||
2014-120IO, 0.67877%, 04/16/2056 (b)(c) | 2,140,054 | 68,959 | ||
2014-138IO, 0.71885%, 04/16/2056 (b)(c) | 1,690,334 | 71,472 | ||
2014-155IB, 1.15511%, 08/16/2055 (b)(c) | 1,022,257 | 50,053 | ||
2015-130IO, 0.83832%, 07/16/2057 (b)(c) | 2,487,862 | 96,081 | ||
2015-97A, 2.400%, 04/16/2043 | 472,020 | 480,301 | ||
2017-76IO, 0.92759%, 12/16/2056 (b)(c) | 4,738,143 | 280,711 | ||
2020-H04IO, 2.5193%, 02/20/2070 (b)(c) | 1,084,764 | 100,558 | ||
2018-170IO, 0.71789%, 11/16/2060 (b)(c) | 1,254,281 | 94,456 | ||
2020-40IO, 1.20586%, 01/16/2062 (b)(c) | 3,282,662 | 306,331 | ||
2020-H11IO, 1.57871%, 06/20/2070 (b)(c) | 4,753,568 | 397,874 | ||
2018-137AB, 3.500%, 10/20/2048 | 190,735 | 201,621 | ||
| 4,120,762 | |||
Seasoned Credit Risk Transfer Trust Series (0.4%) | ||||
2018-3MA, 3.500% 08/25/2057 | 113,543 |
| 123,681 | |
TOTAL MORTGAGE BACKED SECURITIES (Cost: $37,870,870) | $ | 35,674,697 | ||
U.S. GOVERNMENT NOTES/BONDS (1.0%) | ||||
United States Treasury Inflation Indexed Bonds | ||||
0.625%, 04/15/2023 | 340,633 |
| 356,704 | |
TOTAL U.S. GOVERNMENT NOTES/BONDS (Cost $343,005) | $ | 356,704 | ||
SHORT-TERM INVESTMENTS (10.5%) | ||||
Morgan Stanley Institutional Liquidity Fund, 0.140% (d) | 3,654,078 |
| 3,654,078 | |
TOTAL SHORT-TERM INVESTMENTS (Cost $3,654,078) | $ | 3,654,078 | ||
TOTAL INVESTMENTS (Cost $41,867,953) (114.2%) | $ | 39,685,479 | ||
LIABILITIES IN EXCESS OF OTHER ASSETS (-14.2%) | $ | (4,929,738) | ||
NET ASSETS (100.0%) | $ | 34,755,741 | ||
(a) Variable rate security; the rate shown represents the rate at July 31, 2020. Coupon may be fixed for a period of time. | ||||
(b) Variable rate security; the rate shown represents the rate at July 31, 2020. The coupon is based on an underlying pool of loans. | ||||
(c) Represents an interest-only security that entitles holders to receive only interest payments on underlying mortgages. | ||||
(d) Seven day yield as of July 31, 2020. |
The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS
Statements of Assets and Liabilities | July 31, 2020
Dividend | Energized | Growth | ||||||
Harvest | Dividend | & Income | ||||||
Fund | Fund | Fund | ||||||
ASSETS | ||||||||
Investments in securities, at cost | $ | 142,226,471 | $ | 5,777,360 | $ | 29,935,861 | ||
| ||||||||
Investments in securities, at value | $ | 146,905,220 | $ | 4,321,933 | $ | 44,279,250 | ||
Cash and cash equivalents | 200,836 | 329,401 | 5,678,122 | |||||
Receivable for Fund shares sold | 52,793 | 0 | 11,190 | |||||
Accrued dividends receivable | 476,215 | 16,923 | 71,183 | |||||
Accrued interest receivable | 6 | 1 | 50 | |||||
Receivable from affiliate | 68,754 | 8,112 | 24,426 | |||||
Prepaid expenses | 30,844 | 7,840 | 14,738 | |||||
Other assets | 2,785 | 0 | 0 | |||||
Total assets | $ | 147,737,453 | $ | 4,684,210 | $ | 50,078,959 | ||
| ||||||||
LIABILITIES | ||||||||
Payable for Fund shares redeemed | 260,660 | 8,934 | 110,738 | |||||
Trustees’ fees payable | 9,998 | 346 | 2,815 | |||||
Payable to affiliates | 175,818 | 10,540 | 71,237 | |||||
Accrued expenses | 36,994 | 4,412 | 13,684 | |||||
Total liabilities | $ | 483,470 | $ | 24,232 | $ | 198,474 | ||
| ||||||||
NET ASSETS | $ | 147,253,983 | $ | 4,659,978 | $ | 49,880,485 | ||
| ||||||||
NET ASSETS ARE REPRESENTED BY: | ||||||||
Capital stock outstanding, $.001 par value, unlimited shares authorized | $ | 159,563,798 | $ | 7,981,824 | $ | 35,287,830 | ||
Distributable earnings (accumulated losses) |
| (12,309,815) |
| (3,321,846) |
| 14,592,655 | ||
| ||||||||
NET ASSETS | $ | 147,253,983 | $ | 4,659,978 | $ | 49,880,485 | ||
| ||||||||
Net Assets - Class A | $ | 80,762,381 | $ | 1,828,802 | $ | 39,422,260 | ||
Net Assets - Class C | $ | 14,193,577 | $ | 259,748 | $ | 1,091,582 | ||
Net Assets - Class I | $ | 52,298,025 | $ | 2,571,428 | $ | 9,366,643 | ||
Shares outstanding - Class A | 6,352,424 | 284,500 | 649,073 | |||||
Shares outstanding - Class C | 1,125,225 | 40,514 | 18,293 | |||||
Shares outstanding - Class I | 4,109,981 | 399,805 | 154,051 | |||||
Net asset value per share - Class A* | $12.71 | $6.43 | $60.74 | |||||
Maximum sales charge - Class A | 5.00% | 5.00% | 5.00% | |||||
Public offering price per share - Class A | $13.38 | $6.77 | $63.94 | |||||
Net asset value per share - Class C* | $12.61 | $6.41 | $59.67 | |||||
Net asset value per share - Class I | $12.72 | $6.43 | $60.80 | |||||
| ||||||||
* Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. | ||||||||
| ||||||||
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Assets and Liabilities | July 31, 2020
High | MNA | Short Term | ||||||
Income | Resources | Government | ||||||
Fund | Fund | Fund | ||||||
ASSETS | ||||||||
Investments in securities, at cost | $ | 35,741,304 | $ | 96,150,847 | $ | 41,867,953 | ||
| ||||||||
Investments in securities, at value | $ | 34,741,563 | $ | 85,129,550 | $ | 39,685,479 | ||
Cash and cash equivalents | 2,089,509 | 3,567,282 | 12,668 | |||||
Security sales receivable | 78,302 | 0 | 0 | |||||
Receivable for Fund shares sold | 9,634 | 10,198 | 144,700 | |||||
Accrued dividends receivable | 0 | 118,291 | 0 | |||||
Accrued interest receivable | 535,681 | 32 | 166,918 | |||||
Receivable from affiliate | 21,492 | �� | 1,621 | 17,433 | ||||
Prepaid expenses | 13,201 | 25,505 | 18,548 | |||||
Total assets | $ | 37,489,382 | $ | 88,852,479 | $ | 40,045,746 | ||
| ||||||||
LIABILITIES | ||||||||
Payable for securities purchased | $ | 141,000 | $ | 0 | $ | 5,261,482 | ||
Payable for Fund shares redeemed | 32,930 | 172,017 | 0 | |||||
Distributions payable | 28,386 | 0 | 0 | |||||
Trustees’ fees payable | 2,454 | 6,894 | 1,128 | |||||
Payable to affiliates | 48,300 | 133,753 | 19,964 | |||||
Accrued expenses | 10,638 | 56,222 | 7,431 | |||||
Total liabilities | $ | 263,708 | $ | 368,886 | $ | 5,290,005 | ||
| ||||||||
NET ASSETS | $ | 37,225,674 | $ | 88,483,593 | $ | 34,755,741 | ||
| ||||||||
NET ASSETS ARE REPRESENTED BY: | ||||||||
Capital stock outstanding, $.001 par value, unlimited shares authorized | $ | 38,950,757 | $ | 336,310,809 | $ | 41,734,402 | ||
Distributable earnings (accumulated losses) |
| (1,725,083) |
| (247,827,216) |
| (6,978,661) | ||
| ||||||||
NET ASSETS | $ | 37,225,674 | $ | 88,483,593 | $ | 34,755,741 | ||
| ||||||||
Net Assets - Class A | $ | 25,309,421 | $ | 69,684,216 | $ | 14,566 | ||
Net Assets - Class C | $ | 2,753,438 | $ | 9,729,883 | $ | N/A | ||
Net Assets - Class I | $ | 9,162,815 | $ | 9,069,494 | $ | 34,741,175 | ||
Shares outstanding - Class A | 3,308,588 | 26,871,968 | 1,579 | |||||
Shares outstanding - Class C | 359,148 | 3,780,019 | N/A | |||||
Shares outstanding - Class I | 1,198,806 | 3,523,533 | 3,768,677 | |||||
Net asset value per share - Class A* | $7.65 | $2.59 | $9.22 | |||||
Maximum sales charge - Class A | 4.25% | 5.00% | 2.00% | |||||
Public offering price per share - Class A | $7.99 | $2.73 | $9.41 | |||||
Net asset value per share - Class C* | $7.67 | $2.57 | N/A | |||||
Net asset value per share - Class I | $7.64 | $2.57 | $9.22 | |||||
| ||||||||
* Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. | ||||||||
| ||||||||
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Operations | For the year ended July 31, 2020
Dividend | Energized | Growth | ||||||
Harvest | Dividend | & Income | ||||||
Fund | Fund | Fund | ||||||
INVESTMENT INCOME | ||||||||
Dividends (net of foreign withholding taxes of $64,952, $13,099, and $0, respectively) | $ | 6,734,555 | $ | 355,045 | $ | 914,591 | ||
Interest | 5,884 | 616 | 5,817 | |||||
Total investment income | $ | 6,740,439 | $ | 355,661 | $ | 920,408 | ||
| ||||||||
EXPENSES | ||||||||
Investment advisory fees | $ | 1,117,051 | $ | 41,187 | $ | 413,099 | ||
Distribution (12b-1) fees - Class A | 221,233 | 6,265 | 92,540 | |||||
Distribution (12b-1) fees - Class C | 146,133 | 2,351 | 0 | |||||
Transfer agent fees | 280,126 | 21,918 | 86,391 | |||||
Administrative service fees | 256,646 | 55,818 | 105,964 | |||||
Professional fees | 37,557 | 4,304 | 12,499 | |||||
Reports to shareholders | 14,158 | 521 | 5,863 | |||||
License, fees, and registrations | 53,397 | 14,616 | 15,918 | |||||
Audit fees | 28,290 | 1,029 | 7,966 | |||||
Trustees’ fees | 16,841 | 619 | 4,668 | |||||
Transfer agent out-of-pockets | 30,109 | 1,949 | 13,384 | |||||
Custodian fees | 6,219 | 334 | 1,587 | |||||
Legal fees | 16,241 | 596 | 4,500 | |||||
Insurance expense | 2,787 | 125 | 755 | |||||
Total expenses | $ | 2,226,788 | $ | 151,632 | $ | 765,134 | ||
Less expenses waived or reimbursed (See Note 7) |
| (816,597) |
| (101,797) |
| (258,113) | ||
Total net expenses | $ | 1,410,191 | $ | 49,835 | $ | 507,021 | ||
|
|
|
|
|
|
| ||
NET INVESTMENT INCOME (LOSS) | $ | 5,330,248 | $ | 305,826 | $ | 413,387 | ||
| ||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||
Net realized gain (loss) from investment transactions | $ | (8,618,110) | $ | (1,544,266) | $ | 1,058,855 | ||
Net change in unrealized appreciation (depreciation) of investments | (918,982) | (1,172,841) | 3,499,036 | |||||
Net realized and unrealized gain (loss) on investments | $ | (9,537,092) | $ | (2,717,107) | $ | 4,557,891 | ||
| ||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (4,206,844) | $ | (2,411,281) | $ | 4,971,278 | ||
| ||||||||
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Operations | For the year ended July 31, 2020
High | MNA | Short Term | ||||||
Income | Resources | Government | ||||||
Fund | Fund | Fund* | ||||||
INVESTMENT INCOME | ||||||||
Dividends (net of foreign withholding taxes of $0, $96,114, and $0, respectively) | $ | 34,645 | $ | 4,684,281 | $ | 0 | ||
Interest | 2,162,290 | 25,841 | 130,381 | |||||
Total investment income | $ | 2,196,935 | $ | 4,710,122 | $ | 130,381 | ||
| ||||||||
EXPENSES | ||||||||
Investment advisory fees | $ | 321,550 | $ | 659,077 | $ | 16,793 | ||
Distribution (12b-1) fees - Class A | 61,879 | 534,081 | 6 | |||||
Distribution (12b-1) fees - Class C | 36,497 | 117,500 | 0 | |||||
Transfer agent fees | 57,429 | 249,301 | 7,675 | |||||
Administrative service fees | 101,091 | 232,672 | 13,788 | |||||
Professional fees | 11,799 | 41,590 | 6,218 | |||||
Reports to shareholders | 2,874 | 37,246 | 927 | |||||
License, fees, and registrations | 24,882 | 54,294 | 8,539 | |||||
Audit fees | 7,169 | 24,188 | 3,781 | |||||
Trustees’ fees | 4,278 | 14,807 | 484 | |||||
Transfer agent out-of-pockets | 6,303 | 94,410 | 480 | |||||
Custodian fees | 4,141 | 3,428 | 306 | |||||
Legal fees | 4,123 | 14,239 | 602 | |||||
Insurance expense | 707 | 3,672 | 488 | |||||
Total expenses | $ | 644,722 | $ | 2,080,505 | $ | 60,087 | ||
Less expenses waived or reimbursed (See Note 7) |
| (279,177) |
| (113,684) |
| (29,300) | ||
Total net expenses | $ | 365,545 | $ | 1,966,821 | $ | 30,787 | ||
|
|
|
|
|
|
| ||
NET INVESTMENT INCOME (LOSS) | $ | 1,831,390 | $ | 2,743,301 | $ | 99,594 | ||
| ||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||
Net realized gain (loss) from investment transactions | $ | 171,128 | $ | (74,703,078) | $ | 12,225 | ||
Net change in unrealized appreciation (depreciation) of investments | (1,109,288) | 11,522,856 | 51,121 | |||||
Net realized and unrealized gain (loss) on investments | $ | (938,160) | $ | (63,180,222) | $ | 63,346 | ||
| ||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 893,230 | $ | (60,436,921) | $ | 162,940 | ||
* For the period June 1, 2020 to July 31, 2020. | ||||||||
| ||||||||
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statement of Operations | For the year ended May 31, 2020
Short Term | |||
Government | |||
Fund | |||
INVESTMENT INCOME | |||
Interest Income | $ | 766,088 | |
Total investment income | $ | 766,088 | |
|
| ||
EXPENSES |
| ||
Investment advisory fees | $ | 52,151 | |
Distribution (12b-1) fees - Class A | 11 | ||
Transfer agent fees | 18,006 | ||
Administrative service fees | 62,223 | ||
Professional fees | 4,031 | ||
Chief Compliance Officer fees |
|
| 7,503 |
Reports to shareholders | 3,428 | ||
License, fees, and registrations | 14,750 | ||
Audit fees | 18,880 | ||
Trustees’ fees | 2,837 | ||
Transfer agent out-of-pockets | 6,427 | ||
Custodian fees | 6,260 | ||
Legal fees | 9,382 | ||
Insurance expense |
|
| 1,369 |
Tax expense | 2,067 | ||
Total expenses | $ | 209,325 | |
Less expenses waived or reimbursed (See Note 7) |
| (113,704) | |
Total net expenses | $ | 95,621 | |
|
|
| |
NET INVESTMENT INCOME (LOSS) | $ | 670,467 | |
|
| ||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS |
| ||
Net realized gain (loss) from investment transactions | $ | 9,066 | |
Net change in unrealized appreciation (depreciation) of investments | (116,565) | ||
Net realized and unrealized gain (loss) on investments | $ | (107,499) | |
|
| ||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 562,968 |
The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS
Statements of Changes in Net Assets | For the year ended July 31, 2020
Dividend | Energized | Growth | ||||||
Harvest | Dividend | & Income | ||||||
Fund | Fund | Fund | ||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | ||||||||
Net investment income (loss) | $ | 5,330,248 | $ | 305,826 | $ | 413,387 | ||
Net realized gain (loss) from investment transactions | (8,618,110) | (1,544,266) | 1,058,855 | |||||
Net change in unrealized appreciation (depreciation) of investments | (918,982) | (1,172,841) | 3,499,036 | |||||
Net increase (decrease) in net assets resulting from operations | $ | (4,206,844) | $ | (2,411,281) | $ | 4,971,278 | ||
| ||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Distributions - Class A | $ | (6,907,504) | $ | (132,821) | $ | (3,330,642) | ||
Distributions - Class C | (1,072,262) | (10,545) | (58,407) | |||||
Distributions - Class I | (3,419,008) | (159,933) | (220,775) | |||||
Return of Capital - Class A | (114,082) | 0 | 0 | |||||
Return of Capital - Class C | (16,832) | 0 | 0 | |||||
Return of Capital - Class I | (56,106) | 0 | 0 | |||||
Total distributions | $ | (11,585,794) | $ | (303,299) | $ | (3,609,824) | ||
| ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Proceeds from sale of shares - Class A | $ | 12,892,646 | $ | 633,399 | $ | 2,972,880 | ||
Proceeds from sale of shares - Class C | 4,696,377 | 102,914 | 836,320 | |||||
Proceeds from sale of shares - Class I | 24,759,800 | 2,691,519 | 8,708,175 | |||||
Proceeds from fund acquisition - Class A* | 132,677 | 0 | 0 | |||||
Proceeds from fund acquisition - Class I* | 23,328,248 | 0 | 0 | |||||
Proceeds from reinvested dividends - Class A | 6,443,515 | 123,514 | 3,179,912 | |||||
Proceeds from reinvested dividends - Class C | 1,029,385 | 10,545 | 58,178 | |||||
Proceeds from reinvested dividends - Class I | 2,911,540 | 124,398 | 159,527 | |||||
Cost of shares redeemed - Class A | (22,092,505) | (878,827) | (5,032,673) | |||||
Cost of shares redeemed - Class C | (3,593,992) | (92,374) | (70,516) | |||||
Cost of shares redeemed - Class I | (23,493,952) | (1,069,925) | (1,548,657) | |||||
Net increase (decrease) in net assets resulting from capital share transactions | $ | 27,013,739 | $ | 1,645,163 | $ | 9,263,146 | ||
| ||||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | $ | 11,221,101 | $ | (1,069,417) | $ | 10,624,600 | ||
NET ASSETS, BEGINNING OF PERIOD | 136,032,882 | 5,729,395 | 39,255,885 | |||||
NET ASSETS, END OF PERIOD | $ | 147,253,983 | $ | 4,659,978 | $ | 49,880,485 | ||
|
|
|
| |||||
* Refer to Note 3 for information on fund acquisition. | ||||||||
| ||||||||
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Changes in Net Assets | For the year ended July 31, 2020
High | MNA | Short Term | ||||||
Income | Resources | Government | ||||||
Fund | Fund | Fund* | ||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | ||||||||
Net investment income (loss) | $ | 1,831,390 | $ | 2,743,301 | $ | 99,594 | ||
Net realized gain (loss) from investment transactions | 171,128 | (74,703,078) | 12,225 | |||||
Net change in unrealized appreciation (depreciation) of investments | (1,109,288) | 11,522,856 | 51,121 | |||||
Net increase (decrease) in net assets resulting from operations | $ | 893,230 | $ | (60,436,921) | $ | 162,940 | ||
| ||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Distributions - Class A | $ | (1,202,647) | $ | (3,125,824) | $ | (44) | ||
Distributions - Class C | (149,397) | (238,035) | 0 | |||||
Distributions - Class I | (481,117) | (500,426) | (121,870) | |||||
Total distributions | $ | (1,833,161) | $ | (3,864,285) | $ | (121,914) | ||
| ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Proceeds from sale of shares - Class A | $ | 3,000,960 | $ | 3,731,174 | $ | 0 | ||
Proceeds from sale of shares - Class C | 501,788 | 2,722,788 | 0 | |||||
Proceeds from sale of shares - Class I | 6,055,163 | 4,182,793 | 16,582,914 | |||||
Proceeds from reinvested dividends - Class A | 992,286 | 2,968,237 | 14 | |||||
Proceeds from reinvested dividends - Class C | 114,235 | 225,031 | 0 | |||||
Proceeds from reinvested dividends - Class I | 388,147 | 417,972 | 65,319 | |||||
Cost of shares redeemed - Class A | (2,978,216) | (43,162,691) | 0 | |||||
Cost of shares redeemed - Class C | (2,013,622) | (5,033,341) | 0 | |||||
Cost of shares redeemed - Class I | (5,951,183) | (10,066,047) | (2,986,023) | |||||
Net increase (decrease) in net assets resulting from capital share transactions | $ | 109,558 | $ | (44,014,084) | $ | 13,662,224 | ||
| ||||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | $ | (830,373) | $ | (108,315,290) | $ | 13,703,250 | ||
NET ASSETS, BEGINNING OF PERIOD | 38,056,047 | 196,798,883 | 21,052,491 | |||||
NET ASSETS, END OF PERIOD | $ | 37,225,674 | $ | 88,483,593 | $ | 34,755,741 | ||
|
|
| ||||||
* For the period June 1, 2020 to July 31, 2020. | ||||||||
| ||||||||
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Changes in Net Assets | For the year ended July 31, 2019
Dividend | Energized | Growth | ||||||
Harvest | Dividend | & Income | ||||||
Fund | Fund | Fund | ||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | ||||||||
Net investment income (loss) | $ | 4,062,843 | $ | 283,936 | $ | 407,454 | ||
Net realized gain (loss) from investment transactions | 7,078,224 | (192,636) | 2,526,203 | |||||
Net change in unrealized appreciation (depreciation) of investments | (221,884) | (784,435) | 1,451,218 | |||||
Net increase (decrease) in net assets resulting from operations | $ | 10,919,183 | $ | (693,135) | $ | 4,384,875 | ||
| ||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Distributions - Class A | $ | (8,035,053) | $ | (277,465) | $ | (1,974,252) | ||
Distributions - Class C | (1,104,589) | (28,413) | (13,303) | |||||
Distributions - Class I | (2,354,447) | (258,089) | (74,168) | |||||
Return of capital - Class A |
| 0 |
|
| (21,183) |
|
| 0 |
Return of capital - Class C |
| 0 |
|
| (2,388) |
|
| 0 |
Return of capital - Class I |
| 0 |
|
| (17,914) |
|
| 0 |
Total distributions | $ | (11,494,089) | $ | (605,452) | $ | (2,061,723) | ||
| ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Proceeds from sale of shares - Class A | $ | 15,545,073 | $ | 1,323,406 | $ | 2,802,407 | ||
Proceeds from sale of shares - Class C | 2,237,437 | 93,781 | 131,951 | |||||
Proceeds from sale of shares - Class I | 19,223,866 | 1,479,319 | 1,098,199 | |||||
Proceeds from reinvested dividends - Class A | 7,564,375 | 272,907 | 1,890,178 | |||||
Proceeds from reinvested dividends - Class C | 1,034,497 | 30,801 | 13,167 | |||||
Proceeds from reinvested dividends - Class I | 1,764,417 | 258,022 | 48,421 | |||||
Cost of shares redeemed - Class A | (26,454,352) | (1,187,454) | (4,367,719) | |||||
Cost of shares redeemed - Class C | (3,548,537) | (128,806) | (109,598) | |||||
Cost of shares redeemed - Class I | (11,677,405) | (2,430,693) | (457,983) | |||||
Net increase (decrease) in net assets resulting from capital share transactions | $ | 5,689,371 | $ | (288,717) | $ | 1,049,023 | ||
| ||||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | $ | 5,114,465 | $ | (1,587,304) | $ | 3,372,175 | ||
NET ASSETS, BEGINNING OF PERIOD | 130,918,417 | 7,316,699 | 35,883,710 | |||||
NET ASSETS, END OF PERIOD | $ | 136,032,882 | $ | 5,729,395 | $ | 39,255,885 | ||
|
|
|
| |||||
| ||||||||
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Changes in Net Assets | For the year ended July 31, 2019
High | MNA | ||||
Income | Resources | ||||
Fund | Fund | ||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||
Net investment income (loss) | $ | 1,643,540 | $ | 2,022,093 | |
Net realized gain (loss) from investment transactions | (23,445) | (33,124,781) | |||
Net change in unrealized appreciation (depreciation) of investments | 460,317 | (46,710,280) | |||
Net increase (decrease) in net assets resulting from operations | $ | 2,080,412 | $ | (77,812,968) | |
| |||||
DISTRIBUTIONS TO SHAREHOLDERS | |||||
Distributions - Class A | $ | (1,214,775) | $ | (998,223) | |
Distributions - Class C | (184,685) | 0 | |||
Distributions - Class I | (244,091) | (343,060) | |||
Total distributions | $ | (1,643,551) | $ | (1,341,283) | |
| |||||
CAPITAL SHARE TRANSACTIONS | |||||
Proceeds from sale of shares - Class A | $ | 4,456,809 | $ | 6,277,586 | |
Proceeds from sale of shares - Class C | 604,418 | 681,858 | |||
Proceeds from sale of shares - Class I | 8,262,991 | 8,178,124 | |||
Proceeds from reinvested dividends - Class A | 1,001,031 | 950,217 | |||
Proceeds from reinvested dividends - Class C | 152,584 | 0 | |||
Proceeds from reinvested dividends - Class I | 165,637 | 298,412 | |||
Cost of shares redeemed - Class A | (5,160,756) | (68,972,345) | |||
Cost of shares redeemed - Class C | (1,287,186) | (8,154,217) | |||
Cost of shares redeemed - Class I | (2,197,115) | (22,755,480) | |||
Net increase (decrease) in net assets resulting from capital share transactions | $ | 5,998,413 | $ | (83,495,845) | |
| |||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | $ | 6,435,274 | $ | (162,650,096) | |
NET ASSETS, BEGINNING OF PERIOD | 31,620,773 | 359,448,979 | |||
NET ASSETS, END OF PERIOD | $ | 38,056,047 | $ | 196,798,883 | |
|
| ||||
| |||||
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
Short Term | ||||||
|
| Government | ||||
|
| Fund | ||||
|
| Year Ended |
| Year Ended | ||
May 31, 2020 | May 31, 2019 | |||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | ||||||
Net investment income (loss) | $ | 670,467 | $ | 606,470 | ||
Net realized gain (loss) from investment transactions | 9,066 | 5,547 | ||||
Net change in unrealized appreciation (depreciation) of investments | (116,565) | (123,497) | ||||
Net increase (decrease) in net assets resulting from operations | $ | 562,968 | $ | 488,520 | ||
|
|
| ||||
DISTRIBUTIONS TO SHAREHOLDERS |
|
| ||||
Distributions - Class A* | $ | (217) | $ | 0 | ||
Distributions - Class I | (718,637) | (646,655) | ||||
Total distributions | $ | (718,854) | $ | (646,655) | ||
|
|
| ||||
CAPITAL SHARE TRANSACTIONS |
|
| ||||
Proceeds from sale of shares - Class A* | $ | 14,520 | $ | 0 | ||
Proceeds from sale of shares - Class I | 8,448,253 | 403,802 | ||||
Proceeds from reinvested dividends - Class A* | 42 | 0 | ||||
Proceeds from reinvested dividends - Class I | 657,568 | 581,346 | ||||
Cost of shares redeemed - Class A* | 0 | 0 | ||||
Cost of shares redeemed - Class I | (5,329,648) | (6,838,074) | ||||
Net increase (decrease) in net assets resulting from capital share transactions | $ | 3,790,735 | $ | (5,852,926) | ||
|
|
| ||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | $ | 3,634,849 | $ | (6,011,061) | ||
NET ASSETS, BEGINNING OF YEAR | 17,417,642 | 23,428,703 | ||||
NET ASSETS, END OF YEAR | $ | 21,052,491 | $ | 17,417,642 |
* Class A operations commenced on January 21, 2020.
NOTES TO FINANCIAL STATEMENTS
NOTE 1: Organization
The Integrity Funds (the “Trust”) was organized as a Delaware statutory trust on October 31, 1997 and commenced operations on October 31, 1997. The Trust is registered under the Investment Company Act of 1940 as an open-end management investment company, consisting of six series (the “Funds”).
Integrity Dividend Harvest Fund (the “Dividend Harvest Fund”), a diversified fund, seeks high current income with long term appreciation as a secondary objective. Integrity Energized Dividend Fund (the “Energized Dividend Fund”), a non-diversified fund, seeks long-term appreciation while providing high current income. Integrity Growth & Income Fund (the “Growth & Income Fund”), a diversified fund, seeks to provide long-term growth of capital with dividend income as a secondary objective. Integrity High Income Fund (the “High Income Fund”), a diversified fund, seeks a high level of current income with capital appreciation as a secondary objective. Integrity Mid-North American Resources Fund (the “MNA Resources Fund”), a diversified fund, seeks to provide long-term growth through capital appreciation. Integrity Short Term Government Fund (the “S-T Gov Fund”), a diversified fund, seeks to achieve a high and stable rate of total return, when and as opportunities are available in the context of preserving capital in adverse markets.
On July 11, 2019, the Trust for Professional Managers Board of Trustees approved the reorganization of M.D. Sass Equity Income Plus Fund (“M.D. Sass Equity Fund”) into the Dividend Harvest Fund and the M.D. Sass Short Term Government Agency Fund (the “M.D. Sass S-T Gov Fund”) into the S-T Gov Fund. The reorganization was also approved by each Fund’s shareholders at a special meeting held on November 15, 2019.
The acquisition of M.D. Sass Equity Fund was accomplished by a tax-free exchange of 9,056 shares of Dividend Harvest Fund Class A (valued at $132,667) for 11,552 shares of M.D. Sass Equity Fund Investor Class, and 1,590,201 shares of Dividend Harvest Fund Class I (valued at $23,328,248) for 2,028,807 shares of M.D. Sass Equity Fund Institutional Class outstanding on January 17, 2020. M.D. Sass Equity Fund’s net assets on that date of $23,460,915 ($132,667 Investor Class and $23,328,248 Institutional Class), including $1,680,047 of unrealized appreciation, were combined with those of Dividend Harvest Fund. The aggregate net assets of Dividend Harvest Fund Class A, Class C, and Class I and M.D. Sass Equity Fund Investor Class and Institutional Class before the acquisition were $97,963,208, $17,028,796, $39,415,971, $132,667, and $23,328,248, respectively, including total value of investments which includes unrealized appreciation of $12,507,734 and $1,680,047 for M.D. Sass Equity Fund and $153,980,390 and $13,479,720 for Dividend Harvest Fund. The Dividend Harvest Fund elected to maintain the tax cost basis of the investments acquired in the acquisition to align reporting of realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Expenses related to the merger were incurred by the Adviser. Total net assets of Dividend Harvest Fund immediately after the merger was $177,868,890. Assuming the merger had been completed on August 1, 2019 (the beginning of the annual reporting period for Dividend Harvest Fund), the Fund’s pro-forma results of operations for the year ended July 31, 2020 were as follows:
Net Investment Income | $5,550,259 |
Net Realized Losses and Unrealized Depreciation on Investments | ($7,257,845) |
Net Decrease in Net Assets | ($1,707,586) |
Effective at the close of business on January 17, 2020, the S-T Gov Fund acquired all of the assets and liabilities of the corresponding M.D. Sass S-T Gov Fund in a tax-free exchange for shares of beneficial interest of S-T Gov Fund. As a result of the reorganization, the S-T Gov Fund is the accounting successor of M.D. Sass S-T Gov Fund. The reorganization was accomplished by a tax-free exchange of shares of M.D. Sass S-T Gov Fund's shares, value at M.D. Sass S-T Gov Fund's net assets for the exact same shares and value of Integrity S-T Gov Fund's shares. For financial reporting purposes, assets received and shares issued by the S-T Gov Fund were recorded at fair value; however, the cost basis of the investments received from M.D. Sass S-T Gov Fund was carried forward to align ongoing reporting of S-T Gov Fund realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Immediately prior to the reorganization, the Shares outstanding, net assets, Accumulated undistributed net realized gain (loss) on investments, Accumulated undistributed net investment income (loss) and Unrealized appreciation (depreciation) on investments were 1,671,762, $15,485,203, ($4,757,194), $46,989, and ($2,233,164).
Each Fund in the Trust, except for S-T Gov Fund, currently offers Class A, C, and I shares. S-T Gov Fund offers Class A and I shares. The Class A shares of Dividend Harvest Fund, Energized Dividend Fund, Growth & Income Fund, High Income Fund, MNA Resources Fund and S-T Gov Fund are sold with an initial sales charge of 5.00%, 5.00%, 5.00%, 4.25%, 5.00% and 2.00%, respectively, and a distribution fee of up to 0.25% on an annual basis. Class C shares are sold without a sales charge and are subject to a distribution fee of up to 1.00% on an annual basis. Class I shares are sold without a sales charge or distribution fee. The three classes of shares (two classes for S-T Gov Fund) represent interest in each Fund’s same portfolio of investments, have the same rights, and are generally identical in all respects except that each class bears its separate distribution and certain other class expenses and has exclusive voting rights with respect to any matter on which a separate vote of any class is required.
Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts with their vendors and others that provide for general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote.
Each Fund is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic, 946 Financial Services – Investment Companies.
NOTE 2: Summary of Significant Accounting Policies
Investment security valuation—The Funds value their investments at fair value. Securities for which market quotations are available are valued as follows: (a) Listed securities are valued at the closing price obtained from the respective primary exchange on which the security is listed or, if there were no sales on that day, at its last reported current bid price; (b) Unlisted securities are valued at the last current bid price obtained from the National Association of Securities Dealers’ Automated Quotation System. The Funds’ administrative services agent, Integrity Fund Services, LLC (“Integrity Fund Services” or “IFS”) obtains all of these prices from services that collect and disseminate such market prices. Prices provided by an independent pricing service may be determined without exclusive reliance on quoted prices and may take into account appropriate factors such as: institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. In the absence of an ascertainable market value, assets are valued at their fair value as determined by IFS using methods and procedures reviewed and approved by the Board of Trustees. Refer to Note 3 for further disclosures related to the inputs used to value the Funds’ investments. Shares of a registered investment company, including money market funds, that are not traded on an exchange are valued at the investment company’s net asset value per share.
When-issued securities—The Funds may purchase securities on a when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The values of the securities purchased on a when-issued basis are identified as such in each Fund’s Schedule of Investments. With respect to purchase commitments, the Fund identifies securities as segregated in its custodial records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities, if the counterparty does not perform under the contract’s terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Contingent deferred sales charge—Class A shares of $1 million or more may be subject to a 1.00% contingent deferred sales charge (“CDSC”) if redeemed within 24 months of purchase (excluding shares purchased with reinvested dividends and/or distributions). Investments in Class C shares (in any amount) may be subject to a 1.00% CDSC if redeemed within 12 months of purchase.
Federal and state income taxes—Each Fund is a separate taxpayer for federal income tax purposes. Each Fund’s policy is to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of its net investment income and any net realized gain on investments to its shareholders; therefore, no provision for income taxes is required.
As of July 31, 2020, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the year/period ended July 31, 2020, the Funds did not incur any interest or penalties.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years, which include the current and prior three tax years, are open for examination by taxing authorities. Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Premiums and discounts—Premiums and discounts on debt securities are accreted and amortized into interest income using the effective yield method over the lives of the respective securities.
Cash and cash equivalents—The Funds consider investments in an FDIC insured interest bearing savings account to be cash. The Fund maintains balances, which, at times, may exceed federally insured limits. The Fund maintains these balances with a high quality financial institution.
Security transactions, investment income, expenses and distributions—Income and expenses are recorded on the accrual basis. Investment transactions are accounted for on the trade date. Realized gains and losses are reported on the specific identification basis. Interest income and estimated expenses are accrued daily. Dividend income is recognized on the ex-dividend date. Gains and losses on principal payments of mortgage-backed securities (paydown gains and losses) are included as an adjustment to interest income in the Statement of Operations. Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the applicable countries’ tax rules and regulations. Dividend Harvest Fund, Energized Dividend Fund and S-T Gov Fund will declare and pay dividends from net investment income monthly. MNA Resources Fund will declare and pay dividends from net investment income quarterly. Growth & Income Fund will declare and pay dividends from net investment income at least annually. The High Income Fund declares dividends from net investment income daily and pays such dividends monthly. Dividends are reinvested in additional shares of the Funds at net asset value or paid in cash. Capital gains, when available, are distributed at least annually. Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with federal income tax regulations and may differ from net investment income and realized gains determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These differences are primarily due to differing treatments for capital loss carryforwards and losses due to wash sales. In addition, other amounts have been reclassified within the composition of net assets to more appropriately conform financial accounting to tax basis treatment.
Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid-in capital. Temporary book and tax basis differences will reverse in a subsequent period. As of July 31, 2020, distributable earnings was decreased by $6,933,726 and paid in capital was increased by $6,933,726, for the Dividend Harvest Fund due to the acquisition referenced in Note 1.
Use of estimates—The financial statements have been prepared in accordance with GAAP, which 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 increase (decrease) from operations during the reporting period. Actual results could differ from those estimates.
Common expenses—Common expenses of the Trust are allocated among the Funds within the Trust based on relative net assets of each Fund or the nature of the services performed and the relative applicability to each Fund.
Multiple class allocations—The High Income Fund simultaneously uses the settled shares method to allocate income and fund-wide expenses and uses the relative net assets method to allocate gains and losses. Dividend Harvest Fund, Energized Dividend Fund, Growth & Income Fund, MNA Resources Fund and S-T Gov Fund use the relative net assets method to allocate income, fund-wide expenses, gains and losses. Class-specific expenses, distribution fees, and any other items that are specifically attributable to a particular class are charged directly to such class.
Illiquid securities—A security may be considered to be illiquid if it has a limited trading market. Securities are generally considered to be liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the security is valued by the Funds. These securities are valued at fair value as described above. Each Fund intends to hold no more than 15% of its net assets in illiquid securities. Of the illiquid securities listed on the Schedules of Investments, the following securities are considered to be restricted as of July 31, 2020:
High Income Fund | Shares/Principal | Dates Acquired | Cost Basis | Fair Value |
International Oncology Care Inc. | 1,631 | 2/22/18 | 66,476 | 27,287 |
UCI International - Common Stock | 2,633 | 6/8/17 | 119,389 | 59,243 |
NOTE 3: Fair Value Measurements
Various inputs are used in determining the value of the Funds' investments. These inputs are summarized in three broad levels: Level 1 inputs are based on quoted prices in active markets for identical securities. Level 2 inputs are based on significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 inputs are based on significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments). The following is a summary of the inputs used to value the Funds’ investments as of July 31, 2020:
Dividend Harvest Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||
Common Stocks | $ | 146,905,220 | $ | 0 | $ | 0 | $ | 146,905,220 | ||||
Total | $ | 146,905,220 | $ | 0 | $ | 0 | $ | 146,905,220 | ||||
| ||||||||||||
Energized Dividend Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||
Common Stocks | $ | 4,321,933 | $ | 0 | $ | 0 | $ | 4,321,933 | ||||
Total | $ | 4,321,933 | $ | 0 | $ | 0 | $ | 4,321,933 | ||||
| ||||||||||||
Growth & Income Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||
Common Stocks | $ | 44,729,250 | $ | 0 | $ | 0 | $ | 44,729,250 | ||||
Total | $ | 44,729,250 | $ | 0 | $ | 0 | $ | 44,729,250 | ||||
| ||||||||||||
High Income Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||
Corporate Bonds | $ | 0 | $ | 34,039,463 | $ | 0 | $ | 34,039,463 | ||||
Common Stock | 302,991 | 0 | 261,776 | 564,767 | ||||||||
Convertible Preferred Stock | 0 | 56,491 | 68,250 | 124,741 | ||||||||
Warrants | 0 | 0 | 12,592 | 12,592 | ||||||||
Total | $ | 302,991 | $ | 34,095,954 | $ | 342,618 | $ | 34,741,563 | ||||
| ||||||||||||
MNA Resources Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||
Common Stocks | $ | 85,129,550 | $ | 0 | $ | 0 |
| 85,129,550 | ||||
Total | $ | 85,129,550 | $ | 0 | $ | 0 | $ | 85,129,550 |
S-T Gov Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||
Mortgage Backed Securities | $ | 0 | $ | 35,674,697 | $ | 0 | $ | 35,674,697 | ||||
U.S. Government Notes/Bonds | 0 | 356,704 | 0 | 356,704 | ||||||||
Short-Term Investments | 3,654,078 | 0 | 0 | 3,654,078 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total | $ | 3,654,078 | $ | 36,031,401 | $ | 0 | $ | 39,685,479 |
Please refer to the Schedules of Investments for sector classification.
A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments, are presented when a Fund has a significant amount of Level 3 investments at the beginning and/or end of the period in relation to net assets.
The changes of the fair value of investments during the year ended July 31, 2020, for which the Funds have used Level 3 inputs to determine the fair value are as follow:
Balance as | Realized | Change in unrealized | Balance as | |||
High Income Fund | of 7/31/19 | Purchases | Sales | gain/loss | appreciation/depreciation | of 7/31/20 |
Common Stock | $232,606 | $0 | ($2,402) | ($64,074) | $95,646 | $261,776 |
Convertible Preferred Stock | $101,272 | $0 | ($47,022) | $0 | $14,000 | $68,250 |
Warrants | $26,025 | $0 | $0 | $0 | ($13,433) | $12,592 |
Impact to | |||||
Valuation | |||||
Fair Value | Unobservable | Range/ | From Input | ||
Asset Class | at 7/31/20 | Valuation Technique | Inputs | Input | Increases |
Common Stock | $140,778 | Market Comparable Companies | EBITDA Multiple | 7.5x | Increase |
$27,287 | Market Comparable Companies | EBITDA Multiple | 6.25x | Increase | |
$59,243 | Market Comparable Transaction | Transaction Price | $22.50 | Increase | |
$2,568 | Market Comparable Transaction | Broker Quote | $2.00 | Increase | |
$31,900 | Market Comparable Transaction | Broker Quote | $550.00 | Increase | |
$261,776 |
|
|
|
| |
Convertible | $68,250 | Market Comparable Transaction | Broker Quote | $1,750.00 | Increase |
Warrants | $12,592 | Market Comparable Transaction | Broker Quote | $7.50 | Increase |
Unobservable inputs used in the fair value measurement of the Funds’ investments are listed above. Significant changes in any of the unobservable inputs may significantly impact the fair value measurement. Significant increases (decreases) in working capital may increase (decrease) the fair value measurement.
NOTE 4: Investment Transactions
Purchases and sales of investment securities (excluding short-term securities) for the year ended July 31, 2020, were as follows:
Dividend | Energized | Growth & | High | MNA | Short Term | |||||||
Harvest | Dividend | Income | Income | Resources | Government | |||||||
Fund | Fund | Fund | Fund | Fund | Fund | |||||||
Purchases | $85,910,534 | $3,995,720 | $6,304,384 | $14,229,467 | $100,263,191 | $20,343,686 | ||||||
Sales | $75,028,103 | $2,538,812 | $4,385,998 | $12,257,481 | $142,584,263 | $4,777,397 |
NOTE 5: Capital Share Transactions
Transactions in capital shares were as follows:
Year Ended 7/31/20: | Dividend | Energized | Growth & | High | MNA | S-T | ||||||
| Harvest | Dividend | Income | Income | Resources | Gov | ||||||
Class A | Fund | Fund | Fund | Fund | Fund | Fund* | ||||||
Shares sold | 1,019,072 | 74,111 | 52,513 | 394,699 | 1,277,683 | 0 | ||||||
Shares issued from fund acquisition | 9,056 | 0 | 0 | 0 | 0 | 0 | ||||||
Shares issued from reinvestments | 462,287 | 14,480 | 52,866 | 131,654 | 928,156 | 2 | ||||||
Shares redeemed | (1,655,318) | (98,674) | (85,386) | (398,663) | (12,379,276) | 0 | ||||||
Net increase (decrease) | (164,903) | (10,083) | 19,993 | 127,690 | (10,173,437) | 2 | ||||||
| ||||||||||||
Class C | ||||||||||||
Shares sold | 356,351 | 19,095 | 14,517 | 64,870 | 1,040,911 | 0 | ||||||
Shares issued from reinvestments | 74,111 | 1,318 | 982 | 15,080 | 74,995 | 0 | ||||||
Shares redeemed | (282,419) | (9,307) | (1,416) | (276,993) | (1,466,402) | 0 | ||||||
Net increase (decrease) | 148,043 | 11,106 | 14,083 | (197,043) | (350,496) | 0 | ||||||
| ||||||||||||
Class I | ||||||||||||
Shares sold | 1,904,533 | 316,265 | 153,533 | 794,874 | 1,400,447 | 1,802,311 | ||||||
Shares issued from fund acquisition | 1,590,201 | 0 | 0 | 0 | 0 | 0 | ||||||
Shares issued from reinvestments | 211,155 | 14,964 | 2,653 | 51,426 | 129,347 | 7,100 | ||||||
Shares redeemed | (1,785,029) | (148,136) | (28,033) | (810,282) | (2,906,335) | (324,240) | ||||||
Net increase (decrease) | 1,920,860 | 183,093 | 128,153 | 36,018 | (1,376,541) | 1,485,171 | ||||||
Year Ended 7/31/19: | Dividend | Energized | Growth & | High | MNA | S-T | ||||||
| Harvest | Dividend | Income | Income | Resources | Gov | ||||||
Class A | Fund | Fund | Fund | Fund | Fund | Fund** | ||||||
Shares sold | 1,130,076 | 117,896 | 51,836 | 584,923 | 1,401,241 | 1,573 | ||||||
Shares issued from reinvestments | 581,758 | 26,967 | 38,765 | 131,527 | 254,068 | 4 | ||||||
Shares redeemed | (1,889,047) | (106,746) | (78,806) | (680,562) | (15,087,323) | 0 | ||||||
Net increase (decrease) | (177,213) | 38,117 | 11,795 | 35,888 | (13,432,014) | 1,577 | ||||||
| ||||||||||||
Class C | ||||||||||||
Shares sold | 162,865 | 8,408 | 2,467 | 78,227 | 162,320 | |||||||
Shares issued from reinvestments | 80,552 | 3,081 | 272 | 20,011 | 0 | |||||||
Shares redeemed | (256,673) | (11,763) | (1,985) | (168,763) | (1,797,839) | |||||||
Net increase (decrease) | (13,256) | (274) | 754 | (70,525) | (1,635,519) |
| ||||||
| ||||||||||||
Class I | ||||||||||||
Shares sold | 1,375,479 | 123,881 | 19,844 | 1,075,811 | 1,814,121 | 913,879 | ||||||
Shares issued from reinvestments | 135,523 | 25,200 | 994 | 21,666 | 80,218 | 71,068 | ||||||
Shares redeemed | (834,981) | (217,250) | (8,012) | (288,457) | (4,979,800) | (574,340) | ||||||
Net increase (decrease) | 676,021 | (68,169) | 12,826 | 809,020 | (3,085,461) | 410,607 |
Short Term Government Fund | ||||
|
|
|
|
|
Class A | Year Ended 5/31/20 | Year Ended 5/31/19 | ||
Shares sold | 1,573 | 0 | ||
Shares issued from reinvestments | 4 | 0 | ||
Shares redeemed | 0 | 0 | ||
Net increase (decrease) | 1,577 | 0 | ||
| ||||
Class I | ||||
Shares sold | 913,879 | 43.403 | ||
Shares issued from reinvestments | 71,068 | 62,710 | ||
Shares redeemed | (574,340) | (736,789) | ||
Net increase (decrease) | 410,607 | (630,676) |
NOTE 6: Income Tax Information
At July 31, 2020, the unrealized appreciation (depreciation) based on the cost of investments for federal income tax purposes was as follows:
Dividend | Energized | Growth & | High | MNA | S-T | |||||||||||||
Harvest | Dividend | Income | Income | Resources | Gov | |||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||
Investments at cost | $ | 142,271,356 | $ | 5,792,111 | $ | 29,935,861 | $ | 35,744,996 | $ | 98,702,698 | $ | 41,867,953 | ||||||
Unrealized appreciation | $ | 10,313,316 | $ | 57,695 | $ | 15,255,462 | $ | 1,971,908 | $ | 1,230,857 | $ | 686,219 | ||||||
Unrealized depreciation | (5,679,451) | (1,527,873) | (912,073) | (2,975,341) | (14,804,005) | (2,868,693) | ||||||||||||
Net unrealized appreciation* | $ | 4,633,865 | $ | (1,470,178) | $ | 14,343,389 | $ | (1,003,433) | $ | (13,573,148) | $ | (2,182,474) | ||||||
* | Differences between financial reporting-basis and tax-basis unrealized appreciation/ (depreciation) are due to tax deferral of losses on wash sales. | |||||||||||||||||
The tax character of distributions paid was as follows:
Dividend | Energized | Growth & | High | MNA | S-T | |||||||||||||
Harvest | Dividend | Income | Income | Resources | Gov | |||||||||||||
Year ended 7/31/20: | Fund | Fund | Fund | Fund | Fund | Fund* | ||||||||||||
Ordinary Income | $ | 6,011,695 | $ | 303,299 | $ | 563,342 | $ | 1,833,161 | $ | 3,864,284 | $ | 121,915 | ||||||
Return of Capital | 187,020 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Capital Gain |
| 5,387,079 |
| 0 |
| 3,046,482 |
| 0 |
| 0 |
| 0 | ||||||
$ | 11,585,794 | $ | 303,299 | $ | 3,609,824 | $ | 1,833,161 | $ | 3,864,284 | $ | 121,915 | |||||||
Period ended 7/31/19: | ||||||||||||||||||
Ordinary Income | $ | 4,813,575 | $ | 465,611 | $ | 334,469 | $ | 1,643,551 | $ | 1,341,283 | ||||||||
Capital Gain | 6,680,514 | 98,356 | 1,727,254 | 0 | 0 | |||||||||||||
Return of Capital |
| 0 |
| 41,485 |
| 0 |
| 0 |
| 0 | ||||||||
$ | 11,494,089 | $ | 605,452 | $ | 2,061,723 | $ | 1,643,551 | $ | 1,341,283 | |||||||||
* | For the period June 1, 2020 to July 31, 2020 | |||||||||||||||||
The tax character of distributions paid by S-T Gov Fund for the years ended May 31, 2020 and May 31, 2019 was ordinary income in the amounts of $718,854 and $645,655, respectively.
As of July 31, 2020, the components of accumulated earnings/(deficit) on a tax basis were as follows:
Dividend | Energized | Growth & | High | MNA | S-T | |||||||||||||
Harvest | Dividend | Income | Income | Resources | Gov | |||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||
Undistributed ordinary income | $ | 0 | $ | 2,527 | $ | 241,438 | $ | 26,615 | $ | 18,583 | $ | 14,086 | ||||||
Distributions Payable | (28,386) | |||||||||||||||||
Undistributed capital gain | 0 | 0 | 7,828 | 0 | 0 | 0 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Capital loss carryforward | (6,735,932) | (1,854,195) | 0 | (719,879) | (234,272,651) | (4,810,273) | ||||||||||||
Post-October losses deferred ^ | (10,207,748) | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Unrealized appreciation/(depreciation)* | 4,633,865 | (1,470,178) | 14,343,389 | (1,003,433) | (13,573,148) | (2,182,474) | ||||||||||||
Total accumulated earnings/(deficit) | $ | (12,309,815) | $ | (3,321,846) | $ | 14,592,655 | $ | (1,725,083) | $ | (247,827,216) | $ | (6,978,661) | ||||||
* | Differences between financial reporting-basis and tax-basis unrealized appreciation/ (depreciation) are due to tax deferral of losses on wash sales. | |||||||||||||||||
^ | Funds can elect to defer incurred capital losses that occur after October 31 within the fiscal year. Such losses are deemed to arise on the first business day of the following fiscal year for tax purposes. | |||||||||||||||||
The Funds’ capital loss carryforward amounts as of July 31, 2020 are as follows:
Dividend | Energized | Growth & | High | MNA | S-T | |||||||||||||
Harvest | Dividend | Income | Income | Resources | Gov | |||||||||||||
Fund* | Fund | Fund | Fund | Fund | Fund | |||||||||||||
Non-expiring S-T losses | $ | 6,735,932 | $ | 560,163 | $ | 0 | $ | 0 | $ | 122,116,402 | $ | 3,968,406 | ||||||
Non-expiring L-T losses | 0 | 1,294,032 | 0 | 719,879 | 112,156,249 | 841,867 | ||||||||||||
Total | $ | 6,735,932 | $ | 1,854,195 | $ | 0 | $ | 719,879 | $ | 234,272,651 | $ | 4,810,273 | ||||||
Capital loss carryforward utilized | $ | 0 | $ | 0 | $ | 0 | $ | 172,692 | $ | 0 | $ | 0 | ||||||
* | Dividend Harvest Fund’s ability to use the capital loss carryforward of MD Sass Equity Fund may be limited by loss limitation rules under federal tax law. | |||||||||||||||||
NOTE 7: Investment Advisory Fees and Other Transactions with Affiliates
Viking Fund Management (“VFM”), the Funds’ investment adviser; Integrity Funds Distributor, LLC (“Integrity Funds Distributor” or “IFD”), the Funds’ underwriter and distributor; and Integrity Fund Services, the Funds’ transfer, accounting, and administrative services agent; are subsidiaries of Corridor Investors, LLC (“Corridor Investors” or “Corridor”), the Funds’ sponsor. For Integrity High Income Fund, JPMIM is the sub-adviser. For S-T Gov Fund, M.D. Sass Investor Services, Inc. is the sub-adviser. A Trustee of the Funds is also a Governor of Corridor.
VFM provides investment advisory and management services to the Funds. For S-T Gov Fund, VFM began providing investment advisory and services effective January 18, 2020. The Investment Advisory Agreement (the “Advisory Agreement”) provides for fees to be computed at an annual rate of each Fund’s average daily net assets. VFM has also contractually agreed to waive its management fee and to reimburse expenses that are not covered by the management fee, other than extraordinary or non-recurring expenses, taxes, brokerage fees, commissions and acquired fund fees and expenses, so that the net annual operating expenses do not exceed a certain rate. After November 29, 2020, the expense limitations may be terminated or revised for Dividend Harvest Fund, Energized Dividend Fund, Growth and Income Fund, High Income Fund, and MNA Resources Fund. After January 18, 2022, the expense limitations may be terminated or revised for the S-T Gov Fund. Expense limitations as of July 31, 2020, are stated below.
|
|
| Contractual Waiver % | |||||
| Advisory Fee % |
| Class A |
| Class C |
| Class I | |
Dividend Harvest Fund | 0.75% |
| 0.95% |
| 1.70% |
| 0.70% | |
Energized Dividend Fund | 0.75% |
| 1.05% |
| 1.80% |
| 0.80% | |
Growth & Income Fund* | 1.00% |
| 1.24% |
| 1.99% |
| 0.99% | |
High Income Fund* | 0.85% |
| 0.99% |
| 1.74% |
| 0.74% | |
MNA Resources Fund | 0.50% |
| 1.50% |
| 2.00% |
| 1.00% | |
S-T Gov Fund | 0.30% |
| 0.80% |
| N/A |
| 0.55% | |
* | For the period August 1, 2019 to November 28, 2019, the contractual waiver for Growth & Income Fund was 1.25%, 2.00%, and 1.00% for Class A, Class C, and Class I shares, respectively. For the period August 1, 2019 to November 28, 2019, the contractual waiver for High Income Fund was 0.89%, 1.64%, and 0.64% for Class A, Class C, and Class I shares, respectively. | |||||||
VFM and affiliated service providers may also voluntarily waive fees or reimburse expenses not required under the advisory or other contracts from time to time. For Energized Dividend Fund, VFM voluntarily agreed to waive fees to maintain expenses at .75%, 1.50%, and .50% of daily average net assets for Class A, Class C and Class I shares, respectively, for the period August 1, 2019 to September 30, 2019. Accordingly, after voluntary and contractual fee waivers and reimbursements, the Energized Dividend Fund’s actual total expenses for Class A, C, and I were 0.99%, 1.74%, and 0.74%, respectively, of average daily net assets for the year ended July 31, 2020. VFM and the affiliated service providers have agreed to voluntarily waive the affiliated service provider’s fees before voluntarily or contractually waiving VFM’s management fee. An expense limitation lowers expense ratios and increases returns to investors. Certain Officers of the Funds are also Officers and Governors of VFM.
Year Ended 7/31/20 | Payable 7/31/20 | |||||||||||||||||
Advisory |
| Waived |
| Reimb. | Advisory |
| Waived |
| Reimb. | |||||||||
Dividend Harvest Fund | $ | 1,117,051 | $ | 816,597 | $ | 0 | $ | 92,933 | $ | 68,754 | $ | 0 | ||||||
Energized Dividend Fund | $ | 41,187 | $ | 41,187 | $ | 60,610 | $ | 3,014 | $ | 3,014 | $ | 5,098 | ||||||
Growth & Income Fund | $ | 413,099 | $ | 258,113 | $ | 0 | $ | 41,314 | $ | 24,426 | $ | 0 | ||||||
High Income Fund | $ | 321,550 | $ | 279,177 | $ | 0 | $ | 26,171 | $ | 21,492 | $ | 0 | ||||||
MNA Resources Fund | $ | 659,077 | $ | 113,684 | $ | 0 | $ | 37,249 | $ | 1,621 | $ | 0 | ||||||
S-T Gov Fund* | $ | 16,793 | $ | 16,793 | $ | 12,507 | $ | 8,906 | $ | 8,906 | $ | 8,527 | ||||||
* | For the period June 1, 2020 to July 31, 2020. | |||||||||||||||||
Amounts incurred during the period from January 18, 2020 to May 31, 2020 for the S-T Gov Fund are reflected as Investment advisory fees and expenses waived or reimbursed on the Statement of Operations for the year ended May 31, 2020 and the table below.
Year Ended 5/31/20 | |||||||
Advisory |
| Waived |
| Reimb. | |||
$ | 19,979 | $ | 19,979 | $ | 11,568 | ||
There are no recoupment provisions in place for waived/reimbursed fees, except for S-T Gov Fund. For S-T Gov Fund, VFM is entitled to recoup such amounts waived or reimbursed for a period of up to three years from the date on which VFM waived fees or reimbursed expenses for the Fund. The Fund will make repayments to the VFM only if such repayment does not cause the annual Fund operating expenses (after the repayment is taken into account) to exceed both (1) the expense limitation in place when such amounts were waived and (2) the Fund’s current expense limitation. $31,547 and $29,300 are subject to potential recovery by VFM but will expire during 2023.
Prior to January 18, 2020, M.D. Sass Investors Services, Inc. and M.D. Sass, LLC (“M.D. Sass”) provided investment management services to S-T Gov Fund. Pursuant to the terms Advisory Agreement, the S-T Gov Fund compensated M.D. Sass for their management services at the annual rate of 0.30% of the Fund’s average daily net assets. M.D. Sass contractually agreed to waive their management fee and/or reimburse the Fund’s other expenses at least through September 28, 2020 (which terminated on January 18, 2020) to the extent necessary to ensure that the S-T Gov Fund’s operating expenses (excluding any front end or contingent deferred load, Rule 12b-1 plan fees, shareholder servicing plan fees, taxes, leverage, interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, dividends or interest expense on short positions, acquired fund fees and expenses or extraordinary expenses) do not exceed the expense limitation cap of 0.55% of average daily net assets for Class I shares. Amounts incurred during the period June 1, 2019 through January 17, 2020 are reflected as Investment advisory fees and expenses waived or reimbursed on the Statement of Operations for the year ended May 31, 2020 and the table below.
Year Ended 5/31/20 | |||||||
Advisory |
| Waived |
| Reimb. | |||
$ | 32,172 | $ | 32,172 | $ | 49,985 | ||
As a result of the January 17, 2020 reorganization, amounts waived by or reimbursed by M.D. Sass prior to January 18, 2020 are not eligible for repayment.
IFD serves as the principal underwriter and distributor for the Funds and receives sales charges deducted from Fund share sales proceeds and CDSC from applicable Fund share redemptions. For S-T Gov Fund, IFD began serving as the principal underwriter and distributor effective January 18, 2020. Also, the Funds have adopted a distribution plan for each class of shares as allowed by Rule 12b-1 of the 1940 Act. Distribution plans permit the Funds to reimburse its principal underwriter for costs related to selling shares of the Funds and for various other services. These costs, which consist primarily of commissions and service fees to broker-dealers who sell shares of the Funds, are paid by shareholders through expenses called “Distribution Plan expenses.” The Funds currently pay an annual distribution fee and/or service fee of up to 0.25% (0.50% for MNA Resources Fund) for Class A and 1.00% for Class C of the average daily net assets. Class I shares do not have a 12b-1 plan in place. Certain Officers of the Funds are also Officers and Governors of IFD.
Year Ended 7/31/20 | Payable 7/31/20 | ||||||||||||
Sales Charges |
| CDSC |
| Distribution Fees | Distribution Fees | ||||||||
Dividend Harvest Fund - A | $ | 345,133 | $ | 0 | $ | 221,233 | $ | 17,028 |
| ||||
Dividend Harvest Fund - C | $ | 0 | $ | 1,020 | $ | 146,133 | $ | 11,948 |
| ||||
Energized Dividend Fund - A | $ | 16,920 | $ | 0 | $ | 6,265 | $ | 387 |
| ||||
Energized Dividend Fund - C | $ | 0 | $ | 0 | $ | 2,351 | $ | 224 |
| ||||
Growth & Income Fund - A | $ | 34,818 | $ | 2,400 | $ | 92,540 | $ | 8,091 |
| ||||
Growth & Income Fund - C | $ | 0 | $ | 30 | $ | 0 | $ | 0 |
| ||||
High Income Fund - A | $ | 57,389 | $ | 0 | $ | 61,879 | $ | 5,242 |
| ||||
High Income Fund - C | $ | 0 | $ | 363 | $ | 36,497 | $ | 2,383 |
| ||||
MNA Resources Fund - A | $ | 99,595 | $ | 3,061 | $ | 534,081 | $ | 29,506 |
| ||||
MNA Resources Fund - C | $ | 0 | $ | 236 | $ | 117,500 | $ | 7,928 |
| ||||
S-T Gov Fund – A* | $ | 0 | $ | 0 | $ | 6 | $ | 3 |
| ||||
* | For the period June 1, 2020 to July 31, 2020. | ||||||||||||
Prior to January 18, 2020, Quasar Distributors, LLC was the distributor and principal underwriter of S-T Gov Fund. Quasar Distributors, LLC is an affiliate of U.S. Bancorp Fund Services, LLC (“U.S. Bancorp”) and U.S. Bank, N.A.
IFS acts as the transfer agent for High Income Fund and S-T Gov Fund (effective January 18, 2020 for S-T Gov Fund) at a monthly variable fee equal to 0.12% on the first $0 to $200 million and at a lower rate in excess of $200 million of the Fund’s average daily net assets on an annual basis and an additional fee of $500 per month for each additional share class plus reimbursement of out-of-pocket expenses and sub-transfer agent out-of-pocket expenses. IFS acts as the transfer agent for Dividend Harvest Fund, Energized Dividend Fund, Growth & Income Fund, and MNA Resources Fund at a monthly variable fee equal to 0.18% on the first $0 to $200 million, 0.15% on the next $200 to $700 million and at a lower rate in excess of $700 million of the Funds’ average daily net assets on an annual basis and an additional fee of $500 per month for each additional share class plus reimbursement of out-of-pocket expenses and sub-transfer agent out-of-pocket expenses. Sub-transfer agent out-of-pocket expenses are included in the transfer agent fees below and in the transfer agent out-of-pocket balance on the Statements of Operations.
Amounts incurred during the period from January 18, 2020 to May 31, 2020 for S-T Gov Fund are reflected as Transfer agent fees and Transfer agent out-of-pockets on the Statement of Operations for the year ended May 31, 2020. Prior to January 18, 2020, U.S. Bancorp served as the transfer agent for S-T Gov Fund. Amounts incurred during the period June 1, 2019 through January 17, 2020 are Transfer agent fees and Transfer agent out-of-pockets on the Statement of Operations for the year ended May 31, 2020. Fees incurred for the year ended May 31, 2020 are $13,733.
IFS also acts as the Funds’ administrative services agent for a monthly fee equal to the sum of a fixed fee of $2,000 and a variable fee equal to 0.14% on the first $0 to $200 million, 0.13% on the next $200 to $700 million and at a lower rate in excess of $700 million of the Funds’ average daily net assets on an annual basis and an additional fee of $1,000 per month for each additional share class plus reimbursement of out-of-pocket expenses. Effective January 18, 2020, IFS began serving as the administrative services agent for S-T Gov Fund. Certain Officers of the Funds are also Officers and Governors of IFS.
Year Ended 7/31/20 | Payable 7/31/20 | |||||||||||
Transfer | Admin. | Transfer | Admin. | |||||||||
Agency Fees | Service Fees | Agency Fees | Service Fees | |||||||||
Dividend Harvest Fund | $ | 310,235 | $ | 256,646 | $ | 32,485 | $ | 21,424 | ||||
Energized Dividend Fund | $ | 23,867 | $ | 55,818 | $ | 2,276 | $ | 4,639 | ||||
Growth & Income Fund | $ | 99,775 | $ | 105,964 | $ | 11,972 | $ | 9,860 | ||||
High Income Fund | $ | 63,732 | $ | 101,091 | $ | 6,117 | $ | 8,387 | ||||
MNA Resources Fund | $ | 343,711 | $ | 232,672 | $ | 44,564 | $ | 14,506 | ||||
S-T Gov Fund* | $ | 8,155 | $ | 13,788 | $ | 3,850 | $ | 7,205 | ||||
* | For the period ended June 1, 2020 to July 31, 2020. | |||||||||||
For the S-T Gov Fund, amounts incurred during the period from January 18, 2020 to May 31, 2020 are included in Administrative service fees on the Statement of Operations for the year ended May 31, 2020. Fees incurred for the year ended May 31, 2020, and owed as of May 31, 2020 are $22,577 and 5,493, respectively.
Prior to January 18, 2020, U.S. Bancorp served the administrative services agent for the S-T Gov Fund. Amounts incurred during the period June 1, 2019 through January 17, 2020 are reflected as Administrative service fees on the Statement of Operations for the year ended May 31, 2020. Fees incurred for the year ended May 31, 2020 are $39,646.
Prior to January 18, 2020, U.S. Bank, N.A. and affiliate of U.S. Bancorp, served as S-T Gov Fund’s custodian. Amounts incurred during the period June 1, 2019 through January 17, 2020 are included in Custodian fees on the Statement of Operations for the year ended May 31, 2020. Fees incurred for the year ended May 31, 2020 are $5,468.
Prior to January 18, 2020, certain officers of S-T Gov Fund were also employees of U.S. Bancorp. A trustee was affiliated with U.S. Bank, N.A. and U.S. Bancorp. The same board member was an interested person of Quasar Distributors, LLC.
NOTE 8: Principal Risks
The High Income Fund may be invested in lower-rated debt securities that have a higher risk of default or loss of value since these securities may be sensitive to economic changes, political changes or adverse developments specific to the issuer.
The MNA Resources Fund invests significantly in relatively few sectors, primarily the energy sector, and has more exposure to the price movement of this sector than funds that diversify their investments among many sectors.
NOTE 9: Subsequent Events
The Funds are required to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the Statements of Assets and Liabilities. For non-recognized subsequent events that must be disclosed to keep the financial statements from being misleading, the Funds are required to disclose the nature of the event as well as an estimate of its financial effect, or a statement that such an estimate cannot be made. Management has evaluated the impact of all subsequent events on the Funds through the issuance date of these financial statements and has noted no such events requiring disclosure.
NOTE 10. Recent Accounting Pronouncements:
In March 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards ("ASU") Update No. 2017-08 "Premium Amortization on Purchased Callable Debt Securities" ("ASU 2017-08"), which shortens the premium amortization period for purchased non-contingently callable debt securities. ASU 2017-08 specifies that the premium amortization period ends at the earliest call date, for purchased non-contingently callable debt securities. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Funds have adopted ASU 2017-08. There was no material impact to the Funds' financial statements.
INTEGRITY DIVIDEND HARVEST FUND CLASS A
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Seven | |||||||||||||||||
Year | Year | Months | Year | Year | Year | ||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||
7/31/20 | 7/31/19 | 7/31/18 | 12/31/17 | 12/30/16 | 12/31/15 | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 14.06 | $ | 14.24 | $ | 14.68 | $ | 14.33 | $ | 12.23 | $ | 12.64 | |||||
| |||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.48 | $ | 0.44 | $ | 0.24 | $ | 0.41 | $ | 0.39 | $ | 0.37 | |||||
Net realized and unrealized gain (loss) on investments (1) | (0.74) | 0.66 | (0.45) | 1.16 | 2.15 | (0.24) | |||||||||||
Total from investment operations | $ | (0.26) | $ | 1.10 | $ | (0.21) | $ | 1.57 | $ | 2.54 | $ | 0.13 | |||||
| |||||||||||||||||
Less Distributions: | |||||||||||||||||
Dividends from net investment income | $ | (0.49) | $ | (0.43) | $ | (0.23) | $ | (0.41) | $ | (0.39) | $ | (0.37) | |||||
Distributions from return of capital | (0.01) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||
Distributions from net realized gains | (0.59) | (0.85) | 0.00 | (0.81) | (0.05) | (0.17) | |||||||||||
Total distributions | $ | (1.09) | $ | (1.28) | $ | (0.23) | $ | (1.22) | $ | (0.44) | $ | (0.54) | |||||
| |||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 12.71 | $ | 14.06 | $ | 14.24 | $ | 14.68 | $ | 14.33 | $ | 12.23 | |||||
| |||||||||||||||||
Total Return (excludes any applicable sales charge) # | (2.39%) | 8.75% | (1.39%) | 11.10% | 20.94% | 1.12% | |||||||||||
| |||||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $80,762 | $91,602 | $95,340 | $111,696 | $107,275 | $43,425 | |||||||||||
Ratio of expenses to average net assets after waivers ^ (2) | 0.95% | 0.95% | 0.95% | 0.95% | 0.95% | 0.85% | |||||||||||
Ratio of expenses to average net assets before waivers ^ | 1.50% | 1.51% | 1.53% | 1.49% | 1.55% | 1.58% | |||||||||||
Ratio of net investment income to average net assets ^ (2) | 3.58% | 3.17% | 2.92% | 2.88% | 3.26% | 3.18% | |||||||||||
Portfolio turnover rate # | 51.62% | 47.71% | 23.05% | 44.89% | 25.56% | 38.38% |
(1) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(2) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
|
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY DIVIDEND HARVEST FUND CLASS C
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Seven | Period | ||||||||||||||||
Year | Year | Months | Year | Year | From | ||||||||||||
Ended | Ended | Ended | Ended | Ended | 8/3/15* to | ||||||||||||
7/31/20 | 7/31/19 | 7/31/18 | 12/31/17 | 12/30/16 | 12/31/15 | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 13.96 | $ | 14.15 | $ | 14.59 | $ | 14.26 | $ | 12.20 | $ | 12.54 | |||||
| |||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.38 | $ | 0.34 | $ | 0.17 | $ | 0.31 | $ | 0.31 | $ | 0.18 | |||||
Net realized and unrealized gain (loss) on investments (1) | (0.74) | 0.65 | (0.44) | 1.14 | 2.11 | (0.17) | |||||||||||
Total from investment operations | $ | (0.36) | $ | 0.99 | $ | (0.27) | $ | 1.45 | $ | 2.42 | $ | 0.01 | |||||
| |||||||||||||||||
Less Distributions: | |||||||||||||||||
Dividends from net investment income | $ | (0.39) | $ | (0.33) | $ | (0.17) | $ | (0.31) | $ | (0.31) | $ | (0.18) | |||||
Distributions from return of capital | (0.01) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||
Distributions from net realized gains | (0.59) | (0.85) | 0.00 | (0.81) | (0.05) | (0.17) | |||||||||||
Total distributions | $ | (0.99) | $ | (1.18) | $ | (0.17) | $ | (1.12) | $ | (0.36) | $ | (0.35) | |||||
| |||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 12.61 | $ | 13.96 | $ | 14.15 | $ | 14.59 | $ | 14.26 | $ | 12.20 | |||||
| |||||||||||||||||
Total Return (excludes any applicable sales charge) # | (3.13%) | 7.92% | (1.78%) | 10.26% | 20.01% | 0.14% | |||||||||||
| |||||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $14,194 | $13,637 | $14,014 | $17,126 | $10,392 | $692 | |||||||||||
Ratio of expenses to average net assets after waivers ^ (2) | 1.70% | 1.70% | 1.70% | 1.70% | 1.70% | 1.70% | |||||||||||
Ratio of expenses to average net assets before waivers ^ | 2.25% | 2.26% | 2.28% | 2.24% | 2.30% | 2.39% | |||||||||||
Ratio of net investment income to average net assets ^ (2) | 2.83% | 2.42% | 2.17% | 2.14% | 2.40% | 2.48% | |||||||||||
Portfolio turnover rate # | 51.62% | 47.71% | 23.05% | 44.89% | 25.56% | 38.38% |
(1) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(2) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
|
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
* | Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY DIVIDEND HARVEST FUND CLASS I
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Seven | Period | ||||||||||||||
Year | Year | Months | Year | From | |||||||||||
Ended | Ended | Ended | Ended | 8/1/16* to | |||||||||||
7/31/20 | 7/31/19 | 7/31/18 | 12/31/17 | 12/30/16 | |||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 14.07 | $ | 14.25 | $ | 14.69 | $ | 14.34 | $ | 13.96 | |||||
| |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income (loss) | $ | 0.51 | $ | 0.48 | $ | 0.26 | $ | 0.45 | $ | 0.22 | |||||
Net realized and unrealized gain (loss) on investments (1) | (0.74) | 0.66 | (0.46) | 1.16 | 0.43 | ||||||||||
Total from investment operations | $ | (0.23) | $ | 1.14 | $ | (0.20) | $ | 1.61 | $ | 0.65 | |||||
| |||||||||||||||
Less Distributions: | |||||||||||||||
Dividends from net investment income | $ | (0.52) | $ | (0.47) | $ | (0.24) | $ | (0.45) | $ | (0.22) | |||||
Distributions from return of capital | (0.01) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||
Distributions from net realized gains | (0.59) | (0.85) | 0.00 | (0.81) | (0.05) | ||||||||||
Total distributions | $ | (1.12) | $ | (1.32) | $ | (0.24) | $ | (1.26) | $ | (0.27) | |||||
| |||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 12.72 | $ | 14.07 | $ | 14.25 | $ | 14.69 | $ | 14.34 | |||||
| |||||||||||||||
Total Return (excludes any applicable sales charge) # | (2.14%) | 9.01% | (1.26%) | 11.37% | 4.67% | ||||||||||
| |||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||
Net assets, end of period (in thousands) | $52,298 | $30,794 | $21,565 | $21,252 | $5,904 | ||||||||||
Ratio of expenses to average net assets after waivers ^ (2) | 0.70% | 0.70% | 0.70% | 0.70% | 0.70% | ||||||||||
Ratio of expenses to average net assets before waivers ^ | 1.25% | 1.26% | 1.28% | 1.24% | 1.31% | ||||||||||
Ratio of net investment income to average net assets ^ (2) | 3.83% | 3.42% | 3.18% | 3.14% | 3.22% | ||||||||||
Portfolio turnover rate # | 51.62% | 47.71% | 23.05% | 44.89% | 25.56% |
(1) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(2) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
|
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
* | Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY ENERGIZED DIVIDEND FUND CLASS A
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Seven | Period | ||||||||||||||
Year | Year | Months | Year | From | |||||||||||
Ended | Ended | Ended | Ended | 5/2/16* to | |||||||||||
7/31/20 | 7/31/19 | 7/31/18 | 12/31/17 | 12/30/16 | |||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.60 | $ | 12.81 | $ | 12.43 | $ | 11.37 | $ | 10.00 | |||||
| |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income (loss) | $ | 0.48 | $ | 0.50 | $ | 0.27 | $ | 0.50 | $ | 0.34 | |||||
Net realized and unrealized gain (loss) on investments (1) | (4.18) | (1.53) | 0.37 | 1.42 | 1.63 | ||||||||||
Total from investment operations | $ | (3.70) | $ | (1.03) | $ | 0.64 | $ | 1.92 | $ | 1.97 | |||||
| |||||||||||||||
Less Distributions: | |||||||||||||||
Dividends from net investment income | $ | (0.47) | $ | (0.52) | $ | (0.26) | $ | (0.50) | $ | (0.34) | |||||
Distributions from net realized gains | 0.00 | (0.57) | 0.00 | (0.36) | (0.26) | ||||||||||
Returns of capital | 0.00 | (0.09) | 0.00 | 0.00 | 0.00 | ||||||||||
Total distributions | $ | (0.47) | $ | (1.18) | $ | (0.26) | $ | (0.86) | $ | (0.60) | |||||
| |||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 6.43 | $ | 10.60 | $ | 12.81 | $ | 12.43 | $ | 11.37 | |||||
| |||||||||||||||
Total Return (excludes any applicable sales charge) # | (36.02%) | (7.18%) | 5.36% | 17.47% | 19.96% | ||||||||||
| |||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||
Net assets, end of period (in thousands) | $1,829 | $3,121 | $3,286 | $2,321 | $1,198 | ||||||||||
Ratio of expenses to average net assets after waivers ^ (2)(3) | 0.99% | 0.67% | 0.51% | 0.35% | 0.17% | ||||||||||
Ratio of expenses to average net assets before waivers ^ | 2.84% | 2.75% | 2.48% | 4.49% | 8.39% | ||||||||||
Ratio of net investment income to average net assets ^ (2) | 5.49% | 4.45% | 3.89% | 5.12% | 5.13% | ||||||||||
Portfolio turnover rate # | 49.17% | 52.37% | 13.33% | 60.18% | 30.17% |
(1) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(2) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
|
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
* | Commencement of operations. |
(3) | The voluntary waiver, based on average net assets, amounted to 0.88%, 0.70%, 0.55%, 0.38%, and 0.06% for the periods ended 12/30/16, 12/31/17, 7/31/18, 7/31/19, and 7/31/20 respectively. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY ENERGIZED DIVIDEND FUND CLASS C
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Seven | Period | ||||||||||||||
Year | Year | Months | Year | From | |||||||||||
Ended | Ended | Ended | Ended | 5/2/16* to | |||||||||||
7/31/20 | 7/31/19 | 7/31/18 | 12/31/17 | 12/30/16 | |||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.56 | $ | 12.77 | $ | 12.40 | $ | 11.36 | $ | 10.00 | |||||
| |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income (loss) | $ | 0.39 | $ | 0.42 | $ | 0.22 | $ | 0.43 | $ | 0.29 | |||||
Net realized and unrealized gain (loss) on investments (1) | (4.14) | (1.53) | 0.37 | 1.40 | 1.62 | ||||||||||
Total from investment operations | $ | (3.75) | $ | (1.11) | $ | 0.59 | $ | 1.83 | $ | 1.91 | |||||
| |||||||||||||||
Less Distributions: | |||||||||||||||
Dividends from net investment income | $ | (0.40) | $ | (0.44) | $ | (0.22) | $ | (0.43) | $ | (0.29) | |||||
Distributions from net realized gains | 0.00 | (0.57) | 0.00 | (0.36) | (0.26) | ||||||||||
Returns of capital | 0.00 | (0.09) | 0.00 | 0.00 | 0.00 | ||||||||||
Total distributions | $ | (0.40) | $ | (1.10) | $ | (0.22) | $ | (0.79) | $ | (0.55) | |||||
| |||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 6.41 | $ | 10.56 | $ | 12.77 | $ | 12.40 | $ | 11.36 | |||||
| |||||||||||||||
Total Return (excludes any applicable sales charge) # | (36.37%) | (7.94%) | 4.90% | 16.64% | 19.300% | ||||||||||
| |||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||
Net assets, end of period (in thousands) | $260 | $311 | $379 | $292 | $114 | ||||||||||
Ratio of expenses to average net assets after waivers ^ (2)(3) | 1.74% | 1.42% | 1.25% | 1.10% | 0.91% | ||||||||||
Ratio of expenses to average net assets before waivers ^ | 3.64% | 3.51% | 3.22% | 5.17% | 12.55% | ||||||||||
Ratio of net investment income to average net assets ^ (2) | 4.74% | 3.70% | 3.16% | 5.03% | 4.14% | ||||||||||
Portfolio turnover rate # | 49.17% | 52.37% | 13.33% | 60.18% | 30.17% |
(1) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(2) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
|
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
* | Commencement of operations. |
(3) | The voluntary waiver, based on average net assets, amounted to 0.88%, 0.70%, 0.55%, 0.38%, and 0.06% for the periods ended 12/30/16, 12/31/17, 7/31/18, 7/31/19, and 7/31/20 respectively. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY ENERGIZED DIVIDEND FUND CLASS I
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Seven | Period | ||||||||||||||
Year | Year | Months | Year | From | |||||||||||
Ended | Ended | Ended | Ended | 8/1/16* to | |||||||||||
7/31/20 | 7/31/19 | 7/31/18 | 12/31/17 | 12/30/16 | |||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.60 | $ | 12.82 | $ | 12.43 | $ | 11.37 | $ | 9.95 | |||||
| |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income (loss) | $ | 0.48 | $ | 0.54 | $ | 0.29 | $ | 0.53 | $ | 0.27 | |||||
Net realized and unrealized gain (loss) on investments (1) | (4.16) | (1.55) | 0.38 | 1.42 | 1.68 | ||||||||||
Total from investment operations | $ | (3.68) | $ | (1.01) | $ | 0.67 | $ | 1.95 | $ | 1.95 | |||||
| |||||||||||||||
Less Distributions: | |||||||||||||||
Dividends from net investment income | $ | (0.49) | $ | (0.55) | $ | (0.28) | $ | (0.53) | $ | (0.27) | |||||
Distributions from net realized gains | 0.00 | (0.57) | 0.00 | (0.36) | (0.26) | ||||||||||
Returns of capital | 0.00 | (0.09) | 0.00 | 0.00 | 0.00 | ||||||||||
Total distributions | $ | (0.49) | $ | (1.21) | $ | (0.28) | $ | (0.89) | $ | (0.53) | |||||
| |||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 6.43 | $ | 10.60 | $ | 12.82 | $ | 12.43 | $ | 11.37 | |||||
| |||||||||||||||
Total Return (excludes any applicable sales charge) # | (35.76%) | (7.02%) | 5.57% | 17.74% | 19.80% | ||||||||||
| |||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||
Net assets, end of period (in thousands) | $2,571 | $2,297 | $3,651 | $2,938 | $395 | ||||||||||
Ratio of expenses to average net assets after waivers ^ (2)(3) | 0.74% | 0.42% | 0.25% | 0.10% | 0.00% | ||||||||||
Ratio of expenses to average net assets before waivers ^ | 2.61% | 2.46% | 2.23% | 3.72% | 5.54% | ||||||||||
Ratio of net investment income to average net assets ^ (2) | 5.74% | 4.70% | 4.16% | 11.66% | 6.90% | ||||||||||
Portfolio turnover rate # | 49.17% | 52.37% | 13.33% | 60.18% | 30.17% |
(1) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(2) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
|
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
* | Commencement of operations. |
(3) | The voluntary waiver, based on average net assets, amounted to 0.88%, 0.70%, 0.55%, 0.38%, and 0.06% for the periods ended 12/30/16, 12/31/17, 7/31/18, 7/31/19, and 7/31/20 respectively. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY GROWTH & INCOME FUND CLASS A
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Seven | |||||||||||||||||
Year | Year | Months | Year | Year | Year | ||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||
7/31/20 | 7/31/19 | 7/31/18 | 12/31/17 | 12/30/16 | 12/31/15 | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 59.55 | $ | 56.62 | $ | 53.51 | $ | 48.38 | $ | 45.07 | $ | 47.03 | |||||
| |||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.57 | $ | 0.62 | $ | 0.27 | $ | 0.58 | $ | 0.71 | $ | 0.35 | |||||
Net realized and unrealized gain (loss) on investments (1) | 6.17 | 5.57 | 2.84 | 8.46 | 3.72 | (1.33) | |||||||||||
Total from investment operations | $ | 6.74 | $ | 6.19 | $ | 3.11 | $ | 9.04 | $ | 4.43 | $ | (0.98) | |||||
| |||||||||||||||||
Less Distributions: | |||||||||||||||||
Dividends from net investment income | $ | (0.83) | $ | (0.32) | $ | 0.00 | $ | (0.58) | $ | (0.71) | $ | (0.35) | |||||
Distributions from net realized gains | (4.72) | (2.94) | 0.00 | (3.33) | (0.41) | (0.63) | |||||||||||
Total distributions | $ | (5.55) | $ | (3.26) | $ | 0.00 | $ | (3.91) | $ | (1.12) | $ | (0.98) | |||||
| |||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 60.74 | $ | 59.55 | $ | 56.62 | $ | 53.51 | $ | 48.38 | $ | 45.07 | |||||
| |||||||||||||||||
Total Return (excludes any applicable sales charge) # | 11.42% | 12.21% | 5.81% | 18.68% | 9.81% | (2.10%) | |||||||||||
| |||||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $39,422 | $37,464 | $34,948 | $34,600 | $32,933 | $35,689 | |||||||||||
Ratio of expenses to average net assets after waivers ^ (2) | 1.24% | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% | |||||||||||
Ratio of expenses to average net assets before waivers ^ | 1.87% | 1.93% | 1.93% | 1.95% | 1.92% | 1.84% | |||||||||||
Ratio of net investment income to average net assets ^ (2) | 0.98% | 1.11% | 0.85% | 1.07% | 1.40% | 0.77% | |||||||||||
Portfolio turnover rate # | 11.44% | 14.11% | 5.99% | 32.42% | 50.94% | 49.88% |
(1) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(2) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
|
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY GROWTH & INCOME FUND CLASS C
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Seven | Period | ||||||||||||||||
Year | Year | Months | Year | Year | From | ||||||||||||
Ended | Ended | Ended | Ended | Ended | 8/3/15* to | ||||||||||||
7/31/20 | 7/31/19 | 7/31/18 | 12/31/17 | 12/30/16 | 12/31/15 | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 58.95 | $ | 56.45 | $ | 53.49 | $ | 48.38 | $ | 45.01 | $ | 49.50 | |||||
| |||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.70 | $ | 0.75 | $ | 0.12 | $ | 0.17 | $ | 0.37 | $ | 0.27 | |||||
Net realized and unrealized gain (loss) on investments (1) | 5.73 | 5.14 | 2.84 | 8.44 | 3.78 | (3.86) | |||||||||||
Total from investment operations | $ | 6.43 | $ | 5.89 | $ | 2.96 | $ | 8.61 | $ | 4.15 | $ | (3.59) | |||||
| |||||||||||||||||
Less Distributions: | |||||||||||||||||
Dividends from net investment income | $ | (0.99) | $ | (0.45) | $ | 0.00 | $ | (0.17) | $ | (0.37) | $ | (0.27) | |||||
Distributions from net realized gains | (4.72) | (2.94) | 0.00 | (3.33) | (0.41) | (0.63) | |||||||||||
Total distributions | $ | (5.71) | $ | (3.39) | $ | 0.00 | $ | (3.50) | $ | (0.78) | $ | (0.90) | |||||
| |||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 59.67 | $ | 58.95 | $ | 56.45 | $ | 53.49 | $ | 48.38 | $ | 45.01 | |||||
| |||||||||||||||||
Total Return (excludes any applicable sales charge) # | 10.97% | 11.74% | 5.53% | 17.79% | 9.18% | (7.25%) | |||||||||||
| |||||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $1,092 | $248 | $195 | $225 | $182 | $168 | |||||||||||
Ratio of expenses to average net assets after waivers ^ (2) | 1.62% | 1.68% | 1.70% | 2.00% | 2.00% | 2.00% | |||||||||||
Ratio of expenses to average net assets before waivers ^ | 1.62% | 1.68% | 1.74% | 2.70% | 2.68% | 2.66% | |||||||||||
Ratio of net investment income (loss) to average net assets ^ (2) | 1.23% | 1.36% | 0.39% | 0.33% | 0.64% | (0.01%) | |||||||||||
Portfolio turnover rate # | 11.44% | 14.11% | 5.99% | 32.42% | 50.94% | 49.88% |
(1) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(2) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
|
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
* | Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY GROWTH & INCOME FUND CLASS I
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Seven | Period | ||||||||||||||
Year | Year | Months | Year | From | |||||||||||
Ended | Ended | Ended | Ended | 8/1/16* to | |||||||||||
7/31/20 | 7/31/19 | 7/31/18 | 12/31/17 | 12/30/16 | |||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 59.61 | $ | 56.68 | $ | 53.49 | $ | 48.36 | $ | 48.11 | |||||
| |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income (loss) | $ | 0.71 | $ | 0.76 | $ | 0.34 | $ | 0.72 | $ | 0.80 | |||||
Net realized and unrealized gain (loss) on investments (1) | 6.19 | 5.58 | 2.85 | 8.46 | 0.66 | ||||||||||
Total from investment operations | $ | 6.90 | $ | 6.34 | $ | 3.19 | $ | 9.18 | $ | 1.46 | |||||
| |||||||||||||||
Less Distributions: | |||||||||||||||
Dividends from net investment income | $ | (0.99) | $ | (0.47) | $ | 0.00 | $ | (0.72) | $ | (0.80) | |||||
Distributions from net realized gains | (4.72) | (2.94) | 0.00 | (3.33) | (0.41) | ||||||||||
Total distributions | $ | (5.71) | $ | (3.41) | $ | 0.00 | $ | (4.05) | $ | (1.21) | |||||
| |||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 60.80 | $ | 59.61 | $ | 56.68 | $ | 53.49 | $ | 48.36 | |||||
| |||||||||||||||
Total Return (excludes any applicable sales charge) # | 11.68% | 12.51% | 5.96% | 18.96% | 3.04% | ||||||||||
| |||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||
Net assets, end of period (in thousands) | $9,367 | $1,544 | $741 | $690 | $228 | ||||||||||
Ratio of expenses to average net assets after waivers ^ (2) | 0.99% | 1.00% | 1.00% | 1.00% | 1.00% | ||||||||||
Ratio of expenses to average net assets before waivers ^ | 1.62% | 1.68% | 1.68% | 1.69% | 1.70% | ||||||||||
Ratio of net investment income to average net assets ^ (2) | 1.23% | 1.36% | 1.08% | 1.30% | 1.50% | ||||||||||
Portfolio turnover rate # | 11.44% | 14.11% | 5.99% | 32.42% | 50.94% |
(1) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(2) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
|
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
* | Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY HIGH INCOME FUND CLASS A
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Seven | |||||||||||||||||
Year | Year | Months | Year | Year | Year | ||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||
7/31/20 | 7/31/19 | 7/31/18 | 12/31/17 | 12/30/16 | 12/31/15 | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 7.77 | $ | 7.66 | $ | 7.80 | $ | 7.66 | $ | 7.03 | $ | 7.75 | |||||
| |||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.37 | $ | 0.39 | $ | 0.23 | $ | 0.37 | $ | 0.39 | $ | 0.40 | |||||
Net realized and unrealized gain (loss) on investments (1) | (0.12) | 0.11 | (0.14) | 0.14 | 0.63 | (0.72) | |||||||||||
Total from investment operations | $ | 0.25 | $ | 0.50 | $ | 0.09 | $ | 0.51 | $ | 1.02 | $ | (0.32) | |||||
| |||||||||||||||||
Less Distributions: | |||||||||||||||||
Dividends from net investment income | $ | (0.37) | $ | (0.39) | $ | (0.23) | $ | (0.37) | $ | (0.39) | $ | (0.40) | |||||
Total distributions | $ | (0.37) | $ | (0.39) | $ | (0.23) | $ | (0.37) | $ | (0.39) | $ | (0.40) | |||||
| |||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 7.65 | $ | 7.77 | $ | 7.66 | $ | 7.80 | $ | 7.66 | $ | 7.03 | |||||
| |||||||||||||||||
Total Return (excludes any applicable sales charge) # | 3.37% | 6.74% | 1.21% | 6.78% | 14.90% | (4.43%) | |||||||||||
| |||||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $25,309 | $24,704 | $24,099 | $24,628 | $25,524 | $24,338 | |||||||||||
Ratio of expenses to average net assets after waivers ^ (2) | 0.95% | 0.89% | 0.89% | 1.13% | 1.15% | 1.15% | |||||||||||
Ratio of expenses to average net assets before waivers ^ | 1.69% | 1.74% | 1.73% | 1.71% | 1.72% | 1.66% | |||||||||||
Ratio of net investment income to average net assets ^ (2) | 4.86% | 5.10% | 5.18% | 4.80% | 5.34% | 5.20% | |||||||||||
Portfolio turnover rate # | 35.02% | 28.24% | 16.50% | 29.22% | 27.61% | 40.85% |
(1) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(2) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
|
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY HIGH INCOME FUND CLASS C
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Seven | |||||||||||||||||
Year | Year | Months | Year | Year | Year | ||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||
7/31/20 | 7/31/19 | 7/31/18 | 12/31/17 | 12/30/16 | 12/31/15 | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 7.78 | $ | 7.68 | $ | 7.82 | $ | 7.68 | $ | 7.05 | $ | 7.77 | |||||
| |||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.31 | $ | 0.33 | $ | 0.20 | $ | 0.31 | $ | 0.34 | $ | 0.34 | |||||
Net realized and unrealized gain (loss) on investments (1) | (0.11) | 0.10 | (0.14) | 0.14 | 0.63 | (0.72) | |||||||||||
Total from investment operations | $ | 0.20 | $ | 0.43 | $ | 0.06 | $ | 0.45 | $ | 0.97 | $ | (0.38) | |||||
| |||||||||||||||||
Less Distributions: | |||||||||||||||||
Dividends from net investment income | $ | (0.31) | $ | (0.33) | $ | (0.20) | $ | (0.31) | $ | (0.34) | $ | (0.34) | |||||
Total distributions | $ | (0.31) | $ | (0.33) | $ | (0.20) | $ | (0.31) | $ | (0.34) | $ | (0.34) | |||||
| |||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 7.67 | $ | 7.78 | $ | 7.68 | $ | 7.82 | $ | 7.68 | $ | 7.05 | |||||
| |||||||||||||||||
Total Return (excludes any applicable sales charge) # | 2.74% | 5.81% | 0.78% | 5.98% | 14.02% | (5.12%) | |||||||||||
| |||||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $2,753 | $4,329 | $4,813 | $5,397 | $5,293 | $5,670 | |||||||||||
Ratio of expenses to average net assets after waivers ^ (2) | 1.70% | 1.64% | 1.64% | 1.88% | 1.90% | 1.90% | |||||||||||
Ratio of expenses to average net assets before waivers ^ | 2.44% | 2.49% | 2.48% | 2.46% | 2.47% | 2.40% | |||||||||||
Ratio of net investment income to average net assets ^ (2) | 4.11% | 4.35% | 4.43% | 4.03% | 4.59% | 4.43% | |||||||||||
Portfolio turnover rate # | 35.02% | 28.24% | 16.50% | 29.22% | 27.61% | 40.85% |
(1) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(2) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
|
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY HIGH INCOME FUND CLASS I
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Seven | Period | ||||||||||||||
Year | Year | Months | Year | From | |||||||||||
Ended | Ended | Ended | Ended | 8/1/16* to | |||||||||||
7/31/20 | 7/31/19 | 7/31/18 | 12/31/17 | 12/30/16 | |||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 7.76 | $ | 7.66 | $ | 7.80 | $ | 7.65 | $ | 7.52 | |||||
| |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income (loss) | $ | 0.39 | $ | 0.41 | $ | 0.24 | $ | 0.39 | $ | 0.16 | |||||
Net realized and unrealized gain (loss) on investments (1) | (0.12) | 0.10 | (0.14) | 0.15 | 0.13 | ||||||||||
Total from investment operations | $ | 0.27 | $ | 0.51 | $ | 0.10 | $ | 0.54 | $ | 0.29 | |||||
| |||||||||||||||
Less Distributions: | |||||||||||||||
Dividends from net investment income | $ | (0.39) | $ | (0.41) | $ | (0.24) | $ | (0.39) | $ | (0.16) | |||||
Total distributions | $ | (0.39) | $ | (0.41) | $ | (0.24) | $ | (0.39) | $ | (0.16) | |||||
| |||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 7.64 | $ | 7.76 | $ | 7.66 | $ | 7.80 | $ | 7.65 | |||||
| |||||||||||||||
Total Return (excludes any applicable sales charge) # | 3.63% | 6.87% | 1.36% | 7.19% | 3.93% | ||||||||||
| |||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||
Net assets, end of period (in thousands) | $9,163 | $9,023 | $2,709 | $2,598 | $648 | ||||||||||
Ratio of expenses to average net assets after waivers ^ (2) | 0.70% | 0.64% | 0.64% | 0.87% | 0.90% | ||||||||||
Ratio of expenses to average net assets before waivers ^ | 1.44% | 1.49% | 1.48% | 1.46% | 1.49% | ||||||||||
Ratio of net investment income to average net assets ^ (2) | 5.11% | 5.35% | 5.43% | 5.04% | 5.18% | ||||||||||
Portfolio turnover rate # | 35.02% | 28.24% | 16.50% | 29.22% | 27.61% |
(1) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(2) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
|
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
* | Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY MID-NORTH AMERICAN RESOURCES FUND CLASS A
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Seven | |||||||||||||||||
Year | Year | Months | Year | Year | Year | ||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||
7/31/20 | 7/31/19 | 7/31/18 | 12/31/17 | 12/30/16 | 12/31/15 | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 4.28 | $ | 5.60 | $ | 5.48 | $ | 5.93 | $ | 4.31 | $ | 5.80 | |||||
| |||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.07 | $ | 0.04 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.03 | |||||
Net realized and unrealized gain (loss) on investments (1) | (1.66) | (1.34) | 0.11 | (0.45) | 1.62 | (1.49) | |||||||||||
Total from investment operations | $ | (1.59) | $ | (1.30) | $ | 0.12 | $ | (0.44) | $ | 1.63 | $ | (1.46) | |||||
| |||||||||||||||||
Less Distributions: | |||||||||||||||||
Dividends from net investment income | $ | (0.10) | $ | (0.02) | $ | 0.00 | $ | (0.01) | $ | (0.01) | $ | (0.03) | |||||
Total distributions | $ | (0.10) | $ | (0.02) | $ | 0.00 | $ | (0.01) | $ | (0.01) | $ | (0.03) | |||||
| |||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 2.59 | $ | 4.28 | $ | 5.60 | $ | 5.48 | $ | 5.93 | $ | 4.31 | |||||
|
|
|
|
|
|
| |||||||||||
Total Return (excludes any applicable sales charge) # | (37.47%) | (23.11%) | 2.19% | (7.48%) | 37.82% | (25.16%) | |||||||||||
| |||||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $69,684 | $158,438 | $282,793 | $339,385 | $592,629 | $490,052 | |||||||||||
Ratio of expenses to average net assets after waivers ^ (2) | 1.50% | 1.50% | 1.49% | 1.47% | 1.46% | 1.44% | |||||||||||
Ratio of expenses to average net assets before waivers ^ | 1.59% | 1.53% | 1.49% | 1.47% | 1.47% | 1.44% | |||||||||||
Ratio of net investment income (loss) to average net assets ^ (2) | 2.09% | 0.79% | 0.19% | 0.15% | 0.17% | 0.52% | |||||||||||
Portfolio turnover rate # | 79.67% | 70.73% | 43.01% | 41.31% | 55.17% | 63.76% |
(1) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(2) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
|
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY MID-NORTH AMERICAN RESOURCES FUND CLASS C
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Seven | |||||||||||||||||
Year | Year | Months | Year | Year | Year | ||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||
7/31/20 | 7/31/19 | 7/31/18 | 12/31/17 | 12/30/16 | 12/31/15 | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 4.23 | $ | 5.53 | $ | 5.43 | $ | 5.89 | $ | 4.30 | $ | 5.79 | |||||
| |||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.05 | $ | 0.01 | $ | (0.01) | $ | (0.02) | $ | (0.02) | $ | 0.01 | |||||
Net realized and unrealized gain (loss) on investments (1) | (1.64) | (1.31) | 0.11 | (0.44) | 1.61 | (1.49) | |||||||||||
Total from investment operations | $ | (1.59) | $ | (1.30) | $ | 0.10 | $ | (0.46) | $ | 1.59 | $ | (1.48) | |||||
| |||||||||||||||||
Less Distributions: | |||||||||||||||||
Dividends from net investment income | $ | (0.07) | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | (0.01) | |||||
Total distributions | $ | (0.07) | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | (0.01) | |||||
| |||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 2.57 | $ | 4.23 | $ | 5.53 | $ | 5.43 | $ | 5.89 | $ | 4.30 | |||||
| |||||||||||||||||
Total Return (excludes any applicable sales charge) # | (37.78%) | (23.51%) | 1.84% | (7.81%) | 36.98% | (25.52%) | |||||||||||
| |||||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $9,730 | $17,463 | $31,899 | $37,629 | $51,909 | $38,170 | |||||||||||
Ratio of expenses to average net assets after waivers ^ (2) | 2.00% | 2.00% | 1.99% | 1.97% | 1.96% | 1.94% | |||||||||||
Ratio of expenses to average net assets before waivers ^ | 2.09% | 2.03% | 1.99% | 1.97% | 1.97% | 1.94% | |||||||||||
Ratio of net investment income (loss) to average net assets ^ (2) | 1.58% | 0.29% | (0.32%) | (0.34%) | (0.33%) | 0.03% | |||||||||||
Portfolio turnover rate # | 79.67% | 70.73% | 43.01% | 41.31% | 55.17% | 63.76% |
(1) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(2) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
|
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
* | Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY MID-NORTH AMERICAN RESOURCES FUND CLASS I
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Seven | Period | ||||||||||||||
Year | Year | Months | Year | From | |||||||||||
Ended | Ended | Ended | Ended | 8/1/16* to | |||||||||||
7/31/20 | 7/31/19 | 7/31/18 | 12/31/17 | 12/30/16 | |||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 4.26 | $ | 5.60 | $ | 5.47 | $ | 5.92 | $ | 4.74 | |||||
| |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income (loss) | $ | 0.09 | $ | 0.06 | $ | 0.02 | $ | 0.04 | $ | 0.03 | |||||
Net realized and unrealized gain (loss) on investments (1) | (1.64) | (1.35) | 0.11 | (0.45) | 1.19 | ||||||||||
Total from investment operations | $ | (1.55) | $ | (1.29) | $ | 0.13 | $ | (0.41) | $ | 1.22 | |||||
| |||||||||||||||
Less Distributions: | |||||||||||||||
Dividends from net investment income | $ | (0.14) | $ | (0.05) | $ | 0.00 | $ | (0.04) | $ | (0.03) | |||||
Total distributions | $ | (0.14) | $ | (0.05) | $ | 0.00 | $ | (0.04) | $ | (0.04) | |||||
| |||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 2.57 | $ | 4.26 | $ | 5.60 | $ | 5.47 | $ | 5.92 | |||||
| |||||||||||||||
Total Return (excludes any applicable sales charge) # | (37.04%) | (22.84%) | 2.38% | (6.92%) | 25.66% | ||||||||||
| |||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||
Net assets, end of period (in thousands) | $9,069 | $20,898 | $44,757 | $60,562 | $14,891 | ||||||||||
Ratio of expenses to average net assets after waivers ^ (2) | 1.00% | 1.00% | 0.99% | 0.97% | 0.97% | ||||||||||
Ratio of expenses to average net assets before waivers ^ | 1.09% | 1.03% | 0.99% | 0.97% | 0.97% | ||||||||||
Ratio of net investment income to average net assets ^ (2) | 2.59% | 1.29% | 0.69% | 0.71% | 0.67% | ||||||||||
Portfolio turnover rate # | 79.67% | 70.73% | 43.01% | 41.31% | 55.17% |
(1) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(2) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
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|
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
* | Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY SHORT TERM GOVERNMENT FUND CLASS A
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Two | Period | |||||
Months | From | |||||
Ended | 1/21/20* to | |||||
7/31/20 | 5/31/20 | |||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 9.21 | $ | 9.26 | ||
| ||||||
Income (loss) from investment operations: | ||||||
Net investment income (loss) | $ | 0.02 | $ | 0.09 | ||
Net realized and unrealized gain (loss) on investments (1) | 0.02 | 0.02 | ||||
Total from investment operations | $ | 0.04 | $ | 0.11 | ||
| ||||||
Less Distributions: | ||||||
Dividends from net investment income | $ | (0.03) | $ | (0.16) | ||
Total distributions | $ | (0.03) | $ | (0.16) | ||
| ||||||
NET ASSET VALUE, END OF PERIOD | $ | 9.22 | $ | 9.21 | ||
|
|
|
|
| ||
Total Return (excludes any applicable sales charge) # | 0.41% | 1.22% | ||||
| ||||||
RATIOS/SUPPLEMENTAL DATA | ||||||
Net assets, end of period (in thousands) | $15 | $15 | ||||
Ratio of expenses to average net assets after waivers ^ (2) | 0.80% | 0.80% | ||||
Ratio of expenses to average net assets before waivers ^ | 1.33% | 1.28% | ||||
Ratio of net investment income (loss) to average net assets ^ (2) | 1.53% | 2.68% | ||||
Portfolio turnover rate # | 16.03% | 65.85% |
(1) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(2) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
|
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
* | Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY SHORT TERM GOVERNMENT FUND CLASS I
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Two | |||||||||||||||||
Months | Year | Year | Year | Year | Year | ||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||
7/31/20 | 5/31/20 | 5/31/19 | 5/31/18 | 5/31/17 | 5/31/16 | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 9.21 | $ | 9.30 | $ | 9.36 | $ | 9.51 | $ | 9.75 | $ | 9.91 | |||||
| |||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.03 | $ | 0.36 | $ | 0.29 | $ | 0.26 | $ | 0.25 | $ | 0.15 | |||||
Net realized and unrealized gain (loss) on investments (1) | 0.01 | (0.05) | (0.05) | (0.11) | (0.19) | (0.11) | |||||||||||
Total from investment operations | $ | 0.04 | $ | 0.31 | $ | 0.24 | $ | 0.15 | $ | 0.06 | $ | 0.04 | |||||
| |||||||||||||||||
Less Distributions: | |||||||||||||||||
Dividends from net investment income | $ | (0.03) | $ | (0.40) | $ | (0.30) | $ | (0.30) | $ | (0.30) | $ | (0.20) | |||||
Total distributions | $ | (0.03) | $ | (0.40) | $ | (0.30) | $ | (0.30) | $ | (0.30) | $ | (0.20) | |||||
| |||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 9.22 | $ | 9.21 | $ | 9.30 | $ | 9.36 | $ | 9.51 | $ | 9.75 | |||||
|
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|
|
|
|
| |||||||||||
Total Return (excludes any applicable sales charge) # | 0.46% | 3.25% | 2.66% | 1.60% | 0.64% | 0.35% | |||||||||||
| |||||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $34,741 | $21,038 | $17,418 | $23,429 | $36,394 | $97,164 | |||||||||||
Ratio of expenses to average net assets after waivers ^ (2) | 0.55% | 0.55% | 0.55% | 0.55% | 0.55% | 0.58% | |||||||||||
Ratio of expenses to average net assets before waivers ^ | 1.08% | 1.21% | 1.24% | 0.90% | 0.64% | 0.59% | |||||||||||
Ratio of net investment income (loss) to average net assets ^ (2) | 1.78% | 3.88% | 3.11% | 2.71% | 2.59% | 1.51% | |||||||||||
Portfolio turnover rate # | 16.03% | 65.85% | 15.24% | 98.95% | 164.31% | 182.08% |
(1) | Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
(2) | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
|
^ | Annualized for periods less than one year. |
# | Not annualized for periods less than one year. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Trustees
The Integrity Funds
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of The Integrity Funds comprising the Funds listed below (the “Funds”) as of July 31, 2020, the related statements of operations and changes in net assets, and the financial highlights for each of the periods indicated below, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of July 31, 2020, the results of their operations, the changes in their net assets, and the financial highlights for each of the periods indicated below in conformity with accounting principles generally accepted in the United States of America.
Fund Name | Statements of Operations | Statements of Changes in Net Assets | Financial Highlights |
Integrity Dividend Harvest Fund, Integrity Growth & Income Fund, Integrity High Income Fund, and Integrity Mid-North American Resources Fund | For the year ended July 31, 2020 | For the years ended July 31, 2020 and 2019 | For the years ended July 31, 2020 and 2019, the seven months ended July 31, 2018, and the years ended December 31, 2017, December 30, 2016 and December 31, 2015 |
Integrity Energized Dividend Fund | For the year ended July 31, 2020 | For the years ended July 31, 2020 and 2019 | For the years ended July 31, 2020 and 2019, seven months ended July 31, 2018, the year ended December 31, 2017, and the period May 2, 2016 (commencement of operations) to December 30, 2016 |
Integrity Short Term Government Fund | For the two months ended July 31, 2020 and year ended May 31, 2020 | For the two months ended July 31, 2020 and the for years ended May 31, 2020 and 2019 | For the two months ended July 31, 2020 and for the years ended May 31, 2020, 2019, 2018, 2017, and 2016 |
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of July 31, 2020, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers or counterparties were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies advised by Viking Fund Management since 2009.
COHEN & COMPANY, LTD.
Chicago, Illinois
September 29, 2020
EXPENSE EXAMPLE (unaudited)
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads), redemption fees and exchange fees; and (2) ongoing costs, including management fees, distribution (12b-1) fees and other Funds expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the one-half year period shown below and held for the entire one-half year period.
The section in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns 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 account value of $8,600 divided by $1,000 equals 8.6), then multiply the result by the number in the appropriate column for your share class in the column entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
The section in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the section in the table under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending | Expenses | |||
Account | Account | Paid | Annualized | ||
Value | Value | During | Expense | ||
|
| 1/31/20 | 7/31/20 | Period* | Ratio |
Integrity Dividend | Actual - Class A | $1,000.00 | $914.60 | $4.52 | 0.95% |
Actual - Class C | $1,000.00 | $911.10 | $8.08 | 1.70% | |
Actual - Class I | $1,000.00 | $915.80 | $3.33 | 0.70% | |
Hypothetical - Class A | $1,000.00 | $1,020.14 | $4.77 | 0.95% | |
Hypothetical - Class C | $1,000.00 | $1,016.41 | $8.52 | 1.70% | |
Hypothetical - Class I | $1,000.00 | $1,021.38 | $3.52 | 0.70% | |
Integrity Energized | Actual - Class A | $1,000.00 | $682.10 | $4.14 | 0.99% |
Actual - Class C | $1,000.00 | $680.00 | $7.27 | 1.74% | |
Actual - Class I | $1,000.00 | $683.40 | $3.10 | 0.74% | |
Hypothetical - Class A | $1,000.00 | $1,019.94 | $4.97 | 0.99% | |
Hypothetical - Class C | $1,000.00 | $1,016.21 | $8.72 | 1.74% | |
Hypothetical - Class I | $1,000.00 | $1,021.18 | $3.72 | 0.74% | |
Integrity Growth & | Actual - Class A | $1,000.00 | $1,019.30 | $6.23 | 1.24% |
Actual - Class C | $1,000.00 | $1,017.20 | $8.13 | 1.62% | |
Actual - Class I | $1,000.00 | $1,020.50 | $4.97 | 0.99% | |
Hypothetical - Class A | $1,000.00 | $1,018.70 | $6.22 | 1.24% | |
Hypothetical - Class C | $1,000.00 | $1,016.81 | $8.12 | 1.62% | |
Hypothetical - Class I | $1,000.00 | $1,019.94 | $4.97 | 0.99% | |
Integrity High | Actual - Class A | $1,000.00 | $1,004.30 | $4.73 | 0.95% |
Actual - Class C | $1,000.00 | $1,001.90 | $8.46 | 1.70% | |
Actual - Class I | $1,000.00 | $1,005.50 | $3.49 | 0.70% | |
Hypothetical - Class A | $1,000.00 | $1,020.14 | $4.77 | 0.95% | |
Hypothetical - Class C | $1,000.00 | $1,016.41 | $8.52 | 1.70% | |
Hypothetical - Class I | $1,000.00 | $1,021.38 | $3.52 | 0.70% | |
Integrity Mid-North American Resources | Actual - Class A | $1,000.00 | $691.60 | $6.31 | 1.50% |
Actual - Class C | $1,000.00 | $689.70 | $8.40 | 2.00% | |
Actual - Class I | $1,000.00 | $692.40 | $4.21 | 1.00% | |
Hypothetical - Class A | $1,000.00 | $1,017.40 | $7.52 | 1.50% | |
Hypothetical - Class C | $1,000.00 | $1,014.92 | $10.02 | 2.00% | |
Hypothetical - Class I | $1,000.00 | $1,019.89 | $5.02 | 1.00% | |
Integrity Short Term Government Fund | Actual - Class A | $1,000.00 | $1,012.30 | $4.00 | 0.80% |
Actual - Class I | $1,000.00 | $1,014.70 | $2.76 | 0.55% | |
Hypothetical - Class A | $1,000.00 | $1,020.89 | $4.02 | 0.80% | |
Hypothetical - Class I | $1,000.00 | $1,022.13 | $2.77 | 0.55% | |
*Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied 182 days in the one-half year period, and divided by 366 days in the fiscal year (to reflect the one-half year period). |
BOARD OF TRUSTEES AND OFFICERS (unaudited)
The Board of Trustees (“Board”) of the Funds consists of four Trustees (the “Trustees”). These same individuals, unless otherwise noted, also serve as trustees for the six series of Viking Mutual Funds. Three Trustees are not “interested persons” (75% of the total) as defined under the 1940 Act (the “Independent Trustees”). The remaining Trustee is “interested” (the “Interested Trustees”) by virtue of his affiliation with Viking Fund Management, LLC and its affiliates.”
For the purposes of this section, the “Fund Complex” consists of the six series of The Integrity Funds and the six series of Viking Mutual Funds.
Each Trustee serves a Fund until its termination; or until the Trustee’s retirement, resignation, or death; or otherwise as specified in the Funds’ organizational documents. Each Officer serves an annual term. The tables that follow show information for each Trustee and Officer of the Funds.
INDEPENDENT TRUSTEES |
|
Name, Date of Birth, Date Service Began, and Number of Funds Overseen in Fund Complex | Principal Occupations for Past Five Years |
Wade A. Dokken | Principal occupation(s): Member, WealthVest Financial Partners (2009 to present); Co-President, WealthVest Marketing (2009 to present), Trustee: Integrity Managed Portfolios (2016 to 2018), The Integrity Funds (2016 to present), and Viking Mutual Funds (2016 to present) Other Directorships Held: Not Applicable |
R. James Maxson | Principal occupation(s): Attorney: Maxson Law Office P.C. (2002 to 2019); Trustee: Integrity Managed Portfolios (1999 to 2018), The Integrity Funds (2003 to present), and Viking Mutual Funds (2009 to present) Other Directorships Held: Peoples State Bank of Velva |
Jerry M. Stai | Principal occupation(s): Minot State University (1999 to present); Trustee: Integrity Managed Portfolios (2006 to 2018), The Integrity Funds (2006 to present), and Viking Mutual Funds (2009 to present) Other Directorships Held: Not Applicable |
The Statement of Additional Information (“SAI”) contains more information about the Funds’ Trustees and is available without charge upon request, by calling Integrity Funds Distributor at 800-276-1262.
INTERESTED TRUSTEE |
|
Name, Position with Trust, Date of Birth, Date Service Began, and Number of Funds Overseen in Fund Complex | Principal Occupations for Past Five Years |
Robert E. Walstad(1) | Principal occupation(s): Governor (2009 to present): Corridor Investors, LLC; Trustee and Chairman: Integrity Managed Portfolios (1996 to 2018), The Integrity Funds (2003 to present), and Viking Mutual Funds (2009 to present) Other Directorships Held: Not Applicable |
(1) Trustee who is an “interested person” of the Funds as defined in the 1940 Act. Mr. Walstad is an interested person by virtue of being an Officer of the Funds and ownership in Corridor Investors, LLC the parent company of Viking Fund Management, Integrity Fund Services, and Integrity Fund Distributors.
The SAI contains more information about the Funds’ Trustees and is available without charge upon request, by calling Integrity Funds Distributor at 800-276-1262.
OTHER OFFICERS |
|
Name, Position with Trust, Date of Birth, and Date Service Began | Principal Occupations for Past Five Years |
Shannon D. Radke | Principal occupation(s): Governor, CEO, and President (2009 to present): Corridor Investors, LLC; Governor and President (1998 to present) and Senior Portfolio Manager (1999 to present): Viking Fund Management, LLC; Governor and President (2009 to present): Integrity Fund Services, LLC and Integrity Funds Distributor, LLC; President: Integrity Managed Portfolios (2009 to 2018), The Integrity Funds (2009 to present), and Viking Mutual Funds (1999 to present) Other Directorships Held: Minot Area Community Foundation |
Peter A. Quist | Principal occupation(s): Governor (2009 to present): Corridor Investors, LLC; Attorney (inactive); Vice President: Integrity Managed Portfolios (1996 to 2018); The Integrity Funds (2003 to present); and Viking Mutual Funds (2009 to present) Other Directorships Held: Not Applicable |
Shelly Nahrstedt | Principal occupation(s): Chief Operating Officer, Integrity Fund Services, LLC, and Treasurer, The Integrity Funds (2020 to present); Director of Financial Fund Administration, PNC Capital Advisors, LLC, and Treasurer, PNC Funds (2018-2019); Director, Cohen & Company (2003-2018).
Other Directorships Held: Not applicable |
Brent M. Wheeler MF CCO: October 2005 Secretary: October 2009 | Principal occupation(s): Mutual Fund Chief Compliance Officer: Integrity Managed Portfolios (2005 to 2018), The Integrity Funds, (2005 to present), and Viking Mutual Funds (2009 to present); Secretary: Integrity Managed Portfolios (2009 to 2018), The Integrity Funds and Viking Mutual Funds (2009 to present) Other Directorships Held: Not Applicable |
The SAI contains more information about the Funds’ Trustees and is available without charge upon request, by calling Integrity Funds Distributor at 800-276-1262.
PRIVACY POLICY
Rev. 11/2017
FACTS | WHAT DOES INTEGRITY VIKING FUNDS DO WITH YOUR PERSONAL INFORMATION? |
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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 depend on the product or service you have with us. This information can include:
· Social Security number, name, address · Account balance, transaction history, account transactions · Investment experience, wire transfer instructions
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 Integrity Viking Funds chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does Integrity Viking Funds share? | Can you limit this sharing? |
For our everyday business purposes- such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
For our marketing purposes- to offer our products and services to you | Yes | No |
For joint marketing with other financial companies | No | We don’t share |
For our affiliates’ everyday business purposes- information about your transactions and experiences | Yes | No |
For our affiliates’ everyday business purposes- information about your creditworthiness | No | We don’t share |
For non-affiliates to market to you | No | We don’t share |
Questions? | Call 1-800-601-5593 or go to www.integrityvikingfunds.com |
PRIVACY POLICY (Continued)
Page 2 |
Who we are | |
Who is providing this notice? | Integrity Viking Funds (a family of investment companies) |
What we do | |
How does Integrity Viking Funds 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. We · train employees on privacy, information security and protection of client information. · limit access to nonpublic personal information to those employees requiring such information in performing their job functions. |
How does Integrity Viking Funds collect my personal information?
| We collect your personal information, for example, when you: · open an account or seek financial or tax advice · provide account information or give us your contact information · make a wire transfer We also collect your personal information from other companies. |
Why can’t I limit all sharing? | Federal law gives you the right to limit only:
· sharing for affiliates’ everyday business purposes-information about your creditworthiness · affiliates from using your information to market to you · sharing for non-affiliates 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 · The Integrity Funds · Viking Mutual Funds · Corridor Investors, LLC · Viking Fund Management, LLC · Integrity Funds Distributor, LLC · Integrity Fund Services, LLC |
Non-affiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
Integrity Viking Funds does not share with non-affiliates so they can market to you. |
Joint marketing | A formal agreement between non-affiliated financial companies that together market financial products or services to you.
Integrity Viking Funds doesn’t jointly market. |
Integrity Viking Funds includes:
· The Integrity Funds
· Viking Mutual Funds
PROXY VOTING OF FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to securities held in the Funds’ portfolios are available, without charge and upon request, by calling 800-276-1262. A report on Form N-PX of how the Funds voted any such proxies during the most recent 12-month period ended June 30 is available through the Funds’ website at www.integrityvikingfunds.com. The information is also available from the Electronic Data Gathering Analysis and Retrieval (“EDGAR”) database on the website of the Securities and Exchange Commission (“SEC”) at www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
Within 60 days of the end of their second and fourth fiscal quarters, the Funds provide a complete schedule of portfolio holdings in their semi-annual and annual reports on the Form N-CSR(S). These reports are filed electronically with the SEC and are delivered to the shareholders of the Funds. The Funds also files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q and N-CSR(S) are available on the SEC’s website at www.sec.gov. The Funds’ Forms N-Q and N-CSR(S) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 202-551-8090. You may also access this information from the Funds’ website at www.integrityvikingfunds.com.
SHAREHOLDER INQUIRIES AND MAILINGS
Direct inquiries regarding the Funds to: Integrity Funds Distributor, LLC PO Box 500 Minot, ND 58702 Phone: 800-276-1262 | Direct inquiries regarding account information to: Integrity Fund Services, LLC PO Box 759 Minot, ND 58702 Phone: 800-601-5593 |
To reduce their expenses, the Funds may mail only one copy of their prospectus and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive additional copies of these documents, please call Integrity Funds Distributor at 800-276-1262 or contact your financial institution. Integrity Funds Distributor will begin sending you individual copies 30 days after receiving your request.
Integrity Viking Funds are sold by prospectus only. An investor should consider the investment objectives, risks, and charges and expenses of the investment company carefully before investing. The prospectus contains this and other information about the investment company. You may obtain a prospectus at no cost from your financial adviser or at www.integrityvikingfunds.com. Please read the prospectus carefully before investing.
Equity Funds
Integrity Dividend Harvest Fund
Integrity Energized Dividend Fund
Integrity Growth & Income Fund
Integrity Mid-North American Resources Fund
Corporate Bond Fund
Integrity High Income Fund
State-Specific Tax-Exempt Bond Funds
Viking Tax-Free Fund for North Dakota
Viking Tax-Free Fund for Montana
Kansas Municipal Fund
Maine Municipal Fund
Nebraska Municipal Fund
Oklahoma Municipal Fund
Government Bond Fund
Integrity Short Term Government Fund
Item 2. CODE OF ETHICS.
At the end of the period covered by this report, the registrant has adopted a code of ethics as defined in Item 2 of Form N-CSR that applies to the registrant’s principal executive officer and principal financial officer (herein referred to as the “Code”). There were no amendments to the Code during the period covered by this report. The registrant did not grant any waivers, including implicit waivers, from any provisions of the Code during the period of this report. The Code is available on the Integrity Viking Funds website at http://www.integrityvikingfunds.com. A copy of the Code is also available, without charge, upon request by calling 800-601-5593. The Code is filed herewith pursuant to Item 12(a)(1) as EX-99.CODE ETH.
Item 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees has determined that Jerry Stai is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Stai is “independent” for purposes of Item 3 of Form N-CSR.
Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
| (a) | Audit Fees: The aggregate fees billed for each of the last two fiscal years for professional services rendered by Cohen Fund Audit Services, Ltd. (“Cohen”), the principal accountant for the audit of the registrant’s annual financial statements, for services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $70,014 for the year ended July 31, 2020, $71,546 for the year ended July 31, 2019, and $37,306 for the seven months ended July 31, 2018. | ||
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| (b) | Audit-Related Fees: The aggregate fees billed in each of the last two fiscal years for assurance and related services by Cohen that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were $0 for the year ended July 31, 2020, $0 for the year ended July 31, 2019, and $0 for the seven months ended July 31, 2018. | ||
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| (c) | Tax Fees: The aggregate fees billed in each of the last two fiscal years for professional services rendered by Cohen for tax compliance, tax advice, and tax planning were $15,500 for the year ended July 31, 2020, $12,500 for the year ended July 31, 2019, and $12,500 for the seven months ended July 31, 2018. Such services included review of excise distribution calculations (if applicable), preparation of the Trust’s federal, state, and excise tax returns, tax services related to mergers, and routine counseling. | ||
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| (d) | All Other Fees: The aggregate fees billed in each of the last two fiscal years for products and services provided by Cohen, other than the services reported in paragraphs (a) through (c) of this Item: None. | ||
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| (e) | (1) | Audit Committee Pre-Approval Policies and Procedures | |
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| The registrant’s audit committee has adopted policies and procedures that require the audit committee to pre-approve all audit and non-audit services provided to the registrant by the principal accountant. |
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| (2) | Percentage of services referred to in 4(b) through 4(d) that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X | |
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| 0% of the services described in paragraphs (b) through (d) of Item 4 were not pre-approved by the audit committee. |
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| (f) | All services performed on the engagement to audit the registrant’s financial statements for the most recent fiscal year-end were performed by Cohen’s full-time permanent employees. | ||
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| (g) | Non-Audit Fees: None. | ||
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| (h) | Principal Accountant’s Independence: The registrant’s auditor did not provide any non-audit services to the registrant’s investment adviser or any entity controlling, controlled by, or controlled with the registrant’s investment adviser that provides ongoing services to the registrant. |
Item 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable
Item 6. INVESTMENTS.
The Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable
Item 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable
Item 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable
Item 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees in the last fiscal half-year.
Item 11. CONTROLS AND PROCEDURES.
| (a) | Based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this Form N-CSR (the “Report”), the registrant’s principal executive officer and principal financial officer believe that the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effectively designed to ensure that information required to be disclosed by the registrant in the Report is recorded, processed, summarized and reported by the filing date, including ensuring that information required to be disclosed in the Report is accumulated and communicated to the registrant’s principal executive officer and principal financial officer who are making certifications in the Report, as appropriate, to allow timely decisions regarding required disclosure. |
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| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant’s most recent fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
Item 12. EXHIBITS.
| (a) | (1) | Code of ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99. CODE ETH. |
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| (3) | Not applicable. |
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| (b) |
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.
The Integrity Funds
By: /s/ Shannon D. Radke
Shannon D. Radke
President
October 6, 2020
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: /s/ Shannon D. Radke
Shannon D. Radke
President
October 6, 2020
By: /s/ Shelly Nahrstedt
Shelly Nahrstedt
Treasurer
October 6, 2020