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: 811-08194
FINANCIAL INVESTORS TRUST
(Exact name of registrant as specified in charter)
1290 Broadway, Suite 1000, Denver, Colorado 80203
(Address of principal executive offices) (Zip code)
Karen Gilomen, Esq., Secretary
Financial Investors Trust
1290 Broadway, Suite 1000
Denver, Colorado 80203
(Name and address of agent for service)
Registrant’s telephone number, including area code: 866-759-5679
Date of fiscal year end: October 31
Date of reporting period: November 1, 2019 - October 31, 2020
1
Item 1. Reports to Stockholders.
Table of Contents
Disclosure of Fund Expenses | 1 |
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | |
Management Commentary | 8 |
Performance Update | 10 |
Consolidated Statement of Investments | 12 |
Consolidated Statement of Assets and Liabilities | 17 |
Consolidated Statement of Operations | 18 |
Consolidated Statements of Changes in Net Assets | 19 |
Consolidated Financial Highlights | 20 |
ALPS | Kotak India Growth Fund | |
Management Commentary | 24 |
Performance Update | 27 |
Consolidated Statement of Investments | 29 |
Consolidated Statement of Assets and Liabilities | 32 |
Consolidated Statement of Operations | 33 |
Consolidated Statements of Changes in Net Assets | 34 |
Consolidated Financial Highlights | 35 |
ALPS | Smith Funds | |
Management Commentary | 40 |
Performance Update | 44 |
Statements of Investments | 52 |
Statements of Assets and Liabilities | 93 |
Statements of Operations | 95 |
Statement of Changes in Net Assets | 96 |
Financial Highlights | 100 |
ALPS | Red Rocks Global Opportunity Fund | |
Management Commentary | 116 |
Performance Update | 118 |
Statement of Investments | 121 |
Statement of Assets and Liabilities | 123 |
Statement of Operations | 124 |
Statements of Changes in Net Assets | 125 |
Financial Highlights | 126 |
Clough China Fund | |
Management Commentary | 131 |
Performance Update | 133 |
Statement of Investments | 135 |
Statement of Assets and Liabilities | 138 |
Statement of Operations | 139 |
Statements of Changes in Net Assets | 140 |
Financial Highlights | 141 |
RiverFront Global Allocation Series | |
Management Commentary | 145 |
Performance Update | 147 |
Statements of Investments | 153 |
Statements of Assets and Liabilities | 156 |
Statements of Operations | 158 |
Statements of Changes in Net Assets | 159 |
Financial Highlights | 162 |
Notes to Financial Statements | 176 |
Report of Independent Registered Public Accounting Firm | 207 |
Additional Information | 208 |
Trustees and Officers | 221 |
Privacy Policy | 225 |
Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the Funds’ annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary (such as a broker-dealer or bank). Instead, the reports will be made available on the Funds’ website (www.alpsfunds.com), 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 already elected to receive shareholder reports electronically, 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 a Fund electronically anytime by contacting your financial intermediary.
You may elect to receive all future reports in paper free of charge. You can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account with your financial intermediary.
alpsfunds.com
Disclosure of Fund Expenses
October 31, 2020 (Unaudited)
Board Examples. As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including applicable sales charges (loads) and redemption fees; and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, shareholder service fees and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested on May 1, 2020 and held until October 31, 2020.
Actual Expenses. The first line under each class in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During Period May 1, 2020 – October 31, 2020” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes. The second line under each class in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account 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 mutual funds. To do so, compare these 5% hypothetical examples 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 or redemption fees. Therefore, the second line under each class in the table below 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.
1 | October 31, 2020
Disclosure of Fund Expenses
October 31, 2020 (Unaudited)
Beginning Account Value May 1, 2020 | Ending Account Value October 31, 2020 | Expense Ratio(a) | Expenses Paid During Period May 1, 2020 - October 31, 2020(b) | |
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund(c) | ||||
Investor Class | ||||
Actual | $1,000.00 | $1,195.30 | 1.39% | $7.67 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.15 | 1.39% | $7.05 |
Class A | ||||
Actual | $1,000.00 | $1,194.90 | 1.35% | $7.45 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.35 | 1.35% | $6.85 |
Class C | ||||
Actual | $1,000.00 | $1,191.30 | 2.05% | $11.29 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,014.83 | 2.05% | $10.38 |
Class I | ||||
Actual | $1,000.00 | $1,195.30 | 1.15% | $6.35 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.36 | 1.15% | $5.84 |
ALPS | Kotak India Growth Fund(d) | ||||
Investor Class | ||||
Actual | $1,000.00 | $1,248.50 | 1.36% | $7.69 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.30 | 1.36% | $6.90 |
Class A | ||||
Actual | $1,000.00 | $1,244.10 | 1.25% | $7.05 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.85 | 1.25% | $6.34 |
Class C | ||||
Actual | $1,000.00 | $1,239.40 | 2.00% | $11.26 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,015.08 | 2.00% | $10.13 |
Class I | ||||
Actual | $1,000.00 | $1,245.20 | 1.00% | $5.64 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.11 | 1.00% | $5.08 |
Class II | ||||
Actual | $1,000.00 | $1,246.90 | 0.75% | $4.24 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.37 | 0.75% | $3.81 |
2 | October 31, 2020
Disclosure of Fund Expenses
October 31, 2020 (Unaudited)
Beginning Account Value May 1, 2020 | Ending Account Value October 31, 2020 | Expense Ratio(a) | Expenses Paid During Period May 1, 2020 - October 31, 2020(b) | |
ALPS | Smith Short Duration Bond Fund | ||||
Investor Class | ||||
Actual | $1,000.00 | $1,031.70 | 0.78% | $3.98 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.22 | 0.78% | $3.96 |
Class A | ||||
Actual | $1,000.00 | $1,031.60 | 0.78% | $3.98 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.22 | 0.78% | $3.96 |
Class C | ||||
Actual | $1,000.00 | $1,028.00 | 1.49% | $7.60 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.65 | 1.49% | $7.56 |
Class I | ||||
Actual | $1,000.00 | $1,032.90 | 0.49% | $2.50 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.67 | 0.49% | $2.49 |
ALPS | Smith Total Return Bond Fund | ||||
Investor Class | ||||
Actual | $1,000.00 | $1,036.70 | 0.96% | $4.91 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.31 | 0.96% | $4.88 |
Class A | ||||
Actual | $1,000.00 | $1,036.70 | 0.95% | $4.86 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.36 | 0.95% | $4.82 |
Class C | ||||
Actual | $1,000.00 | $1,033.10 | 1.67% | $8.53 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,016.74 | 1.67% | $8.47 |
Class I | ||||
Actual | $1,000.00 | $1,038.10 | 0.67% | $3.43 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.77 | 0.67% | $3.40 |
3 | October 31, 2020
Disclosure of Fund Expenses
October 31, 2020 (Unaudited)
Beginning Account Value September 16, 2020 | Ending Account Value October 31, 2020 | Expense Ratio(a) | Expenses Paid During Period September 16, 2020 - October 31, 2020(e) | |
ALPS | Smith Credit Opportunities Fund | ||||
Investor Class | ||||
Actual | $1,000.00 | $997.70 | 1.20% | $1.51 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.10 | 1.20% | $6.09 |
Class A | ||||
Actual | $1,000.00 | $997.80 | 1.20% | $1.51 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.10 | 1.20% | $6.09 |
Class C | ||||
Actual | $1,000.00 | $996.90 | 1.90% | $2.38 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,015.58 | 1.90% | $9.63 |
Class I | ||||
Actual | $1,000.00 | $998.50 | 0.90% | $1.13 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.61 | 0.90% | $4.57 |
ALPS | Smith Balanced Opportunity Fund | ||||
Investor Class | ||||
Actual | $1,000.00 | $988.20 | 1.15% | $1.44 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.36 | 1.15% | $5.84 |
Class A | ||||
Actual | $1,000.00 | $988.40 | 1.15% | $1.44 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.36 | 1.15% | $5.84 |
Class C | ||||
Actual | $1,000.00 | $1,000.00 | 1.85% | $2.33 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,015.84 | 1.85% | $9.37 |
Class I | ||||
Actual | $1,000.00 | $988.50 | 0.85% | $1.06 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.86 | 0.85% | $4.32 |
4 | October 31, 2020
Disclosure of Fund Expenses
October 31, 2020 (Unaudited)
Beginning Account Value May 1, 2020 | Ending Account Value October 31, 2020 | Expense Ratio(a) | Expenses Paid During Period May 1, 2020 - October 31, 2020(b) | |
ALPS | Red Rocks Global Opportunity Fund | ||||
Investor Class | ||||
Actual | $1,000.00 | $1,153.30 | 1.52% | $8.23 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.50 | 1.52% | $7.71 |
Class A | ||||
Actual | $1,000.00 | $1,155.90 | 1.55% | $8.40 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.34 | 1.55% | $7.86 |
Class C | ||||
Actual | $1,000.00 | $1,147.80 | 2.28% | $12.31 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,013.67 | 2.28% | $11.54 |
Class I | ||||
Actual | $1,000.00 | $1,155.60 | 1.27% | $6.88 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.75 | 1.27% | $6.44 |
Class R | ||||
Actual | $1,000.00 | $1,152.00 | 1.73% | $9.36 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,016.44 | 1.73% | $8.77 |
Clough China Fund | ||||
Investor Class | ||||
Actual | $1,000.00 | $1,275.50 | 1.80% | $10.30 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,016.09 | 1.80% | $9.12 |
Class A | ||||
Actual | $1,000.00 | $1,275.20 | 1.77% | $10.12 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,016.24 | 1.77% | $8.97 |
Class C | ||||
Actual | $1,000.00 | $1,270.70 | 2.58% | $14.73 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,012.17 | 2.58% | $13.05 |
Class I | ||||
Actual | $1,000.00 | $1,277.30 | 1.55% | $8.87 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.34 | 1.55% | $7.86 |
5 | October 31, 2020
Disclosure of Fund Expenses
October 31, 2020 (Unaudited)
Beginning Account Value May 1, 2020 | Ending Account Value October 31, 2020 | Expense Ratio(a) | Expenses Paid During Period May 1, 2020 - October 31, 2020(b) | |
RiverFront Asset Allocation Moderate | ||||
Investor Class | ||||
Actual | $1,000.00 | $1,056.90 | 0.50% | $2.59 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.62 | 0.50% | $2.54 |
Class A | ||||
Actual | $1,000.00 | $1,057.10 | 0.50% | $2.59 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.62 | 0.50% | $2.54 |
Class C | ||||
Actual | $1,000.00 | $1,053.70 | 1.25% | $6.45 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.85 | 1.25% | $6.34 |
Class I | ||||
Actual | $1,000.00 | $1,058.30 | 0.25% | $1.29 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,023.88 | 0.25% | $1.27 |
RiverFront Asset Allocation Aggressive | ||||
Investor Class | ||||
Actual | $1,000.00 | $1,126.50 | 0.50% | $2.67 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.62 | 0.50% | $2.54 |
Class A | ||||
Actual | $1,000.00 | $1,126.50 | 0.50% | $2.67 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.62 | 0.50% | $2.54 |
Class C | ||||
Actual | $1,000.00 | $1,123.30 | 1.25% | $6.67 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.85 | 1.25% | $6.34 |
Class I | ||||
Actual | $1,000.00 | $1,128.90 | 0.25% | $1.34 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,023.88 | 0.25% | $1.27 |
Investor Class II | ||||
Actual | $1,000.00 | $1,126.60 | 0.50% | $2.67 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.62 | 0.50% | $2.54 |
Class L | ||||
Actual | $1,000.00 | $1,128.20 | 0.25% | $1.34 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,023.88 | 0.25% | $1.27 |
RiverFront Asset Allocation Growth & Income | ||||
Investor Class | ||||
Actual | $1,000.00 | $1,087.90 | 0.50% | $2.62 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.62 | 0.50% | $2.54 |
Class A | ||||
Actual | $1,000.00 | $1,088.00 | 0.50% | $2.62 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.62 | 0.50% | $2.54 |
Class C | ||||
Actual | $1,000.00 | $1,084.90 | 1.25% | $6.55 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.85 | 1.25% | $6.34 |
Class I | ||||
Actual | $1,000.00 | $1,089.00 | 0.25% | $1.31 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,023.88 | 0.25% | $1.27 |
6 | October 31, 2020
Disclosure of Fund Expenses
October 31, 2020 (Unaudited)
(a) | Annualized, based on the Fund's most recent fiscal half year expenses. |
(b) | Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (184), divided by 366. |
(c) | Includes expenses of the CoreCommodity Management Cayman Commodity Fund Ltd. (wholly-owned subsidiary), exclusive of the subsidiary's management fee. |
(d) | Includes expenses of the Kotak Mauritius Portfolio (wholly-owned subsidiary). |
(e) | Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (46), divided by 366. |
7 | October 31, 2020
ALPS | CoreCommodity Management
CompleteCommodities® Strategy Fund
Management Commentary | October 31, 2020 (Unaudited) |
The twelve month period ending on October 30, 2020 produced negative returns for commodities, as measured by the diversified Bloomberg Commodities Index Total Return (“BCOM”), down -8.75%. The ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund (“I” Shares—“JCRIX” or the “Fund”) delivered a net negative return of -8.18% (JCCSX was -13.35% at MOP and JCRCX was down -9.88% with CDSC and JCRAX was down -8.44%).
The Fund outperformed its benchmark, the BCOM, by 57 basis points during this period. The Fund employs a strategy that combines an actively managed portfolio of commodity futures-related exposure (collateralized by U.S. Treasuries and Treasury Inflation Protected Securities (“TIPS”)), commodity equities, and physical commodity ETFs. On average for the past twelve months, the Fund allocated approximately 76% of its assets toward commodity futures-related investments and approximately 24% of its assets toward commodity equities. The Fund was more than 99% invested at the end of the period.
The past one year period ended October 31, 2020 witnessed historic moves in commodity prices. Markets reacted to the lockdowns and restrictions imposed during the peak periods of uncertainty and fear from the COVID-19 pandemic. The unprecedented disruptions in economic activity, commerce, and travel caused a sudden contraction in global demand for many commodities, especially energy. Commodities, which are typically priced based on reasonably transparent supply/demand fundamentals, had to weigh additional factors based on the general health of the population and corresponding political response. The largest contractions and price reactions occurred in the latter weeks of Q1 2020 and persisted through most of Q2 2020. Following the cyclical trough of late March/early April, prices staged a significant rebound, with certain commodities testing multi-year highs.
During the one-year period ended October 31, 2020, the Fund's agricultural sector was slightly underweight relative to the BCOM, 34% versus 36%. The Fund’s selection of agricultural commodities outperformed that of the BCOM by nearly 500 basis points, 4.10% to -0.70%. Much of the outperformance was due to curve positioning which aimed to negate the harmful effects of contango. The Fund’s higher emphasis on certain “luxury” agricultural commodities: sugar +10.53%, cotton +4.14%, frozen concentrated orange juice +2.87%, and cocoa +0.43%, further contributed to the outperformance. A lower allocation to lean hog futures, about 1% less than the BCOM’s mix, also added alpha. The Fund avoided some of the 38.86% price decline suffered by lean hogs over the course of the year.
Energy prices were hit the hardest of any sector during the period. The BCOM futures dedicated to the energy sector were down substantially, -42.0%. Demand destruction resulting from government lockdowns and travel restrictions imposed tremendous downside pressure on West Texas Intermediate (WTI) crude oil. Nearby prices fell sharply, -58.28% for the period, making it the worst performing constituent of the benchmark index. Products derived from crude oil were also impacted, heating oil dropped by
50.20% while reformulated gasoline fell by 45.05%. During the last 12 months, the Fund held an average overweight of approximately 7% in the energy sector relative to the BCOM. By holding futures positions in months beyond the nearby contract, the Fund effectively offset some of the downside experienced during the height of the COVID-19 crisis. Deferred positioning, along with the Fund’s portfolio of energy equities, produced modest outperformance compared to the BCOM, roughly 60 basis points.
Industrial metal futures held within the BCOM posted a small gain for the year, 2.8%. The Fund’s industrial metal futures managed a gain of 7.0%, nearly 4.2% above the benchmark. The deferred allocation of most industrial metal futures and the substitution of London Metals Exchange (LME) copper for Chicago Mercantile Exchange (CME) copper differentiated the Fund’s sector holdings from the BCOM. Industrial metal equities held by the Fund also outperformed, up 9.9% for the year. Despite a slight underweight to the sector of approximately 2%, industrial metals contributed 1.2% to overall alpha for the year.
Precious metals represented the best performing sector within the BCOM and the Fund. The financial stress and turmoil brought on by the COVID-19 pandemic coupled with an unprecedented amount of monetary stimulus supported precious metal prices. Silver rose 31.95% and gold improved by 23.43%. The value of the US dollar decreased by nearly 3.40% for the year. Precious metal performance tends to be negatively correlated with the dollar. For the year, the Fund’s performance in precious metal futures remained in line with the BCOM’s precious metal holdings, 22.0%. On the other hand, precious metal equities held in the Fund’s portfolio increased a staggering 46.3%. The Fund allocated approximately 4% less to precious metals than the BCOM. The Fund’s alpha generated via the precious metal equities mitigated the under-allocation in an advancing price environment. The Fund trailed the BCOM by just 80 basis points for the year.
{The Fund’s top equity holdings at the end of October 2020 included CF Industries Holdings (CF US) -40.5% YTD, Boliden AB (BOL SS) +5.9% YTD, First Quantum Minerals Ltd. (FM CN) +13.8% YTD, Nutrien Ltd. (NTR CN) -10.9% YTD, Vale SA (VALE US) -16.7% YTD, Alcoa Corp (AA US) -39.9% YTD, Kubota Corp (6326 JP) 10.3% YTD, Sociedad Quimica y Minera de Chile SA (SQM US) +42.7% YTD, Tyson Foods Inc. (TSN US) -35.9% YTD, FMC Corp (FMC US) +4.4% YTD.}
U.S. Treasury Inflation Protected Securities (“TIPS”) and nominal US Treasuries are held by the Fund to invest excess cash and are used as collateral for commodity futures-related investments held in our Cayman Island subsidiary. This year, rates fell dramatically on the back of dovish central bank measures. Two-year US Treasury Notes dropped in yield from 1.69% last October to just 15 basis points at the end of October 2020. At the end of the period, the Fund held a mixture of roughly 70% TIPS and 30% nominal Treasuries. The weighted average maturity in the Fund’s collateral account was 0.75 years.
8 | October 31, 2020
ALPS | CoreCommodity Management
CompleteCommodities® Strategy Fund
Management Commentary | October 31, 2020 (Unaudited) |
We strongly believe that the long term fundamental drivers of commodity demand and ultimately higher prices are firmly in place. Population growth is likely to remain unabated regardless of the economic environment in the US and Europe. A billion more people are expected to be added to the world population over the next decade or so. The trend of wealth distribution is tipping toward the developing world as those economies grow at faster rates relative to more established economies. The improving global quality of life is contributing to ever increasing demand for raw materials and food. Incremental gains in disposable income in developing nations have led to competition for the commodities needed for more complex and costly lifestyles. Now, with the distribution of effective vaccines in the near future, an accelerated growth rate is entirely possible and widely projected.
Commodity prices have rallied significantly in percentage terms from the lows established in the first quarter of 2020. However, the absolute price levels of many commodities, including crude oil, have still not sustained sufficient margins to incentivize the necessary capital expenditures to assure future supply growth. Producers need profit margins to operate, to explore for new sources, and to secure financing. Without robust capital investment, the world may essentially operate from “hand to mouth” for many key commodities. Ultimately that could lead to higher, more volatile prices if problems erupt or demand grows beyond current expectations. The price cycle for many commodities seems to be shifting from one that favored consumers to one that will soon reward producers. Commodities may become a much more intriguing investment as sentiment for the asset class improves alongside the progression of constructive fundamentals.
Bob Hyman
Portfolio Manager
CoreCommodity Management, LLC
Past performance if not indicative of future results. “Bloomberg®” and “Bloomberg Commodity IndexSM” are service marks of Bloomberg L.P. (“Bloomberg”) as the case may be. Source for all Index data: Bloomberg L.P. Global. Commodity Sectors and individual commodities are represented by the respective Bloomberg Commodity Sub-Index. This document does not constitute an offer of any commodities, securities or investment advisory services. Any such offer may be made only by means of a disclosure document or similar materials which contain a description of material terms and risks. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. The economic statistics presented herein are subject to revision by the agencies that issue them. CoreCommodity Management assumes no obligation to provide this information in the future or to advise of changes in this information. Any indices and other financial benchmarks shown are provided for illustrative purposes only, are unmanaged, reflect reinvestment of income and do not reflect the impact of advisory fees. Investors cannot invest directly in an index. All investments are subject to risk.
The views of the authors and information discussed in this commentary are as of the date of publication, are subject to change, and may not reflect the writer's current views. The views expressed are those of the authors only, and represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the fund(s) or any securities or any sectors mentioned in this letter. The subject matter contained in this letter has been derived from several sources believed to be reliable and accurate at the time of compilation. Neither ALPS, Advisors, Inc., CoreCommodity Management, LLC, nor the Fund accepts any liability for losses either direct or consequential caused by the use of this information.
Indices do not reflect deductions for fees, expenses, or taxes.
An investor may not invest directly in an index.
Diversification cannot guarantee gain or prevent losses.
Bob Hyman is a registered representative of ALPS Distributors, Inc.
ALPS Portfolio Solutions Distributor, Inc., ALPS Distributors, Inc. and ALPS Advisors Inc. are affiliated.
9 | October 31, 2020
ALPS | CoreCommodity Management
CompleteCommodities® Strategy Fund
Performance Update | October 31, 2020 (Unaudited) |
Performance of $10,000 Initial Investment (as of October 31, 2020)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception. Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns (as of October 31, 2020)
1 Year | 3 Year | 5 Year | 10 Year | Since Inception^ | Total Expense Ratio | What You Pay* | |
Investor# (NAV) | -8.44% | -5.46% | -1.98% | -4.64% | -2.84% | 1.45% | 1.45% |
Class A (NAV) | -8.29% | -5.41% | -1.95% | -4.63% | -2.83% | 1.45% | 1.45% |
Class A (LOAD) | -13.35% | -7.19% | -3.07% | -5.16% | -3.36% | ||
Class C (NAV) | -8.97% | -6.05% | -2.62% | -5.26% | -3.44% | 2.05% | 2.05% |
Class C (LOAD) | -9.88% | -6.05% | -2.62% | -5.26% | -3.44% | ||
Class I | -8.18% | -5.19% | -1.76% | -4.39% | -2.58% | 1.14% | 1.14% |
Refinitiv/CoreCommodity CRB Commodity Total Return Index1 | -17.66% | -6.83% | -4.75% | -6.48% | -4.81% | ||
Bloomberg Commodity TR Index1 | -8.75% | -4.41% | -2.73% | -6.36% | -4.60% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $ 1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million. The Fund imposes a 2.00% redemption fee on shares held for less than 30 days.
Performance less than 1 year is cumulative.
10 | October 31, 2020
ALPS | CoreCommodity Management
CompleteCommodities® Strategy Fund
Performance Update | October 31, 2020 (Unaudited) |
Performance shown for Class A shares prior to June 12, 2018 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class A shares.
1 | Thomson Reuters/CC CRB Total Return Index and the Bloomberg Commodity TR Index (formerly the Dow Jones-UBS Commodity Index) are unmanaged indices used as a measurement of change in commodity market conditions based on the performance of a basket of different commodities. Each index is composed of a different basket of commodities, a different weighting of the commodities in the basket, and a different re-balancing schedule. The indices are not actively managed and do not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. Effective April 20, 2020 the Thomson Reuters/CoreCommodity CRB Index changed it’s name to Refinitv/Core Commodity CRB Index. |
^ | Fund Inception date of June 29, 2010 for Investor Class and Classes C and I; Fund Inception date of June 12, 2018 for Class A. |
* | What You Pay reflects the Advisor’s decision to contractually limit expenses through February 28, 2021. Please see the prospectus dated February 28, 2020 for additional information. |
# | Prior to December 1, 2017, Investor Class was known as Class A. |
Investments in securities of Master Limited Partnerships (MLPs) involve risks that differ from an investment in common stock. MLPs are controlled by their general partners, which generally have conflicts of interest and limited fiduciary duties to the MLP, which may permit the general partner to favor its own interests over the MLPs. The benefit you are expected to derive from the Fund’s investment in MLPs depends largely on the MLPs being treated as partnerships for federal income tax purposes. As a partnership, an MLP has no federal income tax liability at the entity level. Therefore, treatment of one or more MLPs as a corporation for federal income tax purposes could affect the Fund’s ability to meet its investment objective and would reduce the amount of cash available to pay or distribute to you. Legislative, judicial, or administrative changes and differing interpretations, possibly on a retroactive basis, could negatively impact the value of an investment in MLPs and therefore the value of your investment in the Fund.
Investing in commodity-related securities involves risk and considerations not present when investing in more conventional securities. The Fund may be more susceptible to high volatility of commodity markets.
Derivatives generally are more sensitive to changes in economic or market conditions than other types of investments; this could result in losses that significantly exceed the Fund's original investment.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors, and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Asset Type Allocation (as a % of Net Assets) †
Common Stocks | 29.33% |
Government Bonds | 63.47% |
Master Limited Partnerships | 0.07% |
Cash, Cash Equivalents, & Other Net Assets | 7.13% |
Total | 100.00% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents approximate values only. |
Industry Sector Allocation (as a % of Net Assets) ^
^ | Notional Value of Derivative Exposure included |
11 | October 31, 2020
ALPS | CoreCommodity Management
CompleteCommodities® Strategy Fund
Consolidated Statement of Investments | October 31, 2020 |
Shares | Value (Note 2) | |||||||
COMMON STOCKS (29.33%) | ||||||||
Argentina (0.05%) | ||||||||
YPF SA, Sponsored ADR(a) | 73,592 | $ | 236,966 | |||||
Australia (2.16%) | ||||||||
Alumina, Ltd. | 833,315 | 840,531 | ||||||
Beach Energy, Ltd. | 278,659 | 231,126 | ||||||
BHP Group, Ltd. | 6,563 | 155,831 | ||||||
BlueScope Steel, Ltd. | 131,780 | 1,357,925 | ||||||
Costa Group Holdings, Ltd. | 104,343 | 261,100 | ||||||
Deterra Royalties, Ltd.(a) | 100,615 | 277,938 | ||||||
Fortescue Metals Group, Ltd. | 26,544 | 324,085 | ||||||
GrainCorp, Ltd., Class A(a) | 85,256 | 212,139 | ||||||
IGO, Ltd. | 132,309 | 412,919 | ||||||
Iluka Resources, Ltd. | 100,615 | 364,219 | ||||||
Incitec Pivot, Ltd. | 400,411 | 540,381 | ||||||
Mineral Resources, Ltd. | 56,942 | 999,011 | ||||||
Nufarm, Ltd.(a) | 147,504 | 356,661 | ||||||
OceanaGold Corp.(a) | 204,900 | 267,602 | ||||||
Oil Search, Ltd. | 73,894 | 133,486 | ||||||
OZ Minerals, Ltd. | 108,804 | 1,136,466 | ||||||
Regis Resources, Ltd. | 93,204 | 271,879 | ||||||
Sandfire Resources NL | 78,872 | 245,041 | ||||||
Santos, Ltd. | 163,542 | 543,730 | ||||||
South32, Ltd. | 823,504 | 1,175,045 | ||||||
St Barbara, Ltd. | 162,515 | 302,714 | ||||||
Woodside Petroleum, Ltd. | 18,740 | 230,779 | ||||||
10,640,608 | ||||||||
Austria (0.14%) | ||||||||
OMV AG | 6,908 | 158,494 | ||||||
voestalpine AG | 18,655 | 518,176 | ||||||
676,670 | ||||||||
Brazil (0.86%) | ||||||||
BRF SA, ADR(a) | 141,840 | 419,846 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo, ADR | 56,688 | 418,357 | ||||||
Gerdau SA, Sponsored ADR | 35,353 | 134,695 | ||||||
Petroleo Brasileiro SA, Sponsored ADR | 106,194 | 704,066 | ||||||
Vale SA, Sponsored ADR | 240,246 | 2,539,401 | ||||||
4,216,365 | ||||||||
Canada (3.14%) | ||||||||
B2Gold Corp. | 59,884 | 385,653 | ||||||
Ballard Power Systems, Inc.(a) | 32,985 | 487,188 | ||||||
Cameco Corp. | 50,010 | 475,595 | ||||||
Canadian Solar, Inc.(a) | 42,639 | 1,549,928 | ||||||
Centerra Gold, Inc. | 33,100 | 289,187 | ||||||
First Quantum Minerals, Ltd. | 226,000 | 2,597,057 | ||||||
Hudbay Minerals, Inc. | 180,500 | 814,235 | ||||||
IAMGOLD Corp.(a) | 84,106 | 308,669 | ||||||
Kinross Gold Corp. | 28,621 | 228,109 | ||||||
Kirkland Lake Gold, Ltd. | 3,000 | 136,681 | ||||||
Lundin Mining Corp. | 279,700 | 1,689,999 | ||||||
Maple Leaf Foods, Inc. | 22,700 | 413,347 | ||||||
Nutrien, Ltd. | 63,800 | 2,593,566 |
Shares | Value (Note 2) | |||||||
Canada (continued) | ||||||||
Parex Resources, Inc.(a) | 56,800 | $ | 552,951 | |||||
Sandstorm Gold, Ltd.(a) | 36,048 | 266,755 | ||||||
SSR Mining, Inc.(a) | 34,757 | 643,342 | ||||||
Teck Resources, Ltd., Class B | 133,717 | 1,757,041 | ||||||
Torex Gold Resources, Inc.(a) | 21,700 | 292,526 | ||||||
15,481,829 | ||||||||
Chile (0.52%) | ||||||||
Antofagasta PLC | 53,247 | 710,167 | ||||||
Sociedad Quimica y Minera de Chile SA, Sponsored ADR | 50,514 | 1,869,523 | ||||||
2,579,690 | ||||||||
China (0.57%) | ||||||||
China Petroleum & Chemical Corp., ADR | 5,780 | 227,327 | ||||||
CNOOC, Ltd., Sponsored ADR | 9,262 | 853,215 | ||||||
Daqo New Energy Corp., ADR(a) | 499 | 91,122 | ||||||
JinkoSolar Holding Co., Ltd., ADR(a) | 23,496 | 1,369,818 | ||||||
PetroChina Co., Ltd., ADR | 8,809 | 250,704 | ||||||
2,792,186 | ||||||||
Colombia (0.07%) | ||||||||
Ecopetrol SA, Sponsored ADR | 35,996 | 332,963 | ||||||
Denmark (0.24%) | ||||||||
FLSmidth & Co. A/S(a) | 9,925 | 253,171 | ||||||
Vestas Wind Systems A/S | 5,391 | 920,148 | ||||||
1,173,319 | ||||||||
Faroe Islands (0.08%) | ||||||||
Bakkafrost P/F(a) | 6,869 | 391,419 | ||||||
Finland (0.12%) | ||||||||
Metso Outotec Oyj | 43,438 | 305,816 | ||||||
Outokumpu Oyj(a) | 104,738 | 261,409 | ||||||
567,225 | ||||||||
France (0.07%) | ||||||||
TOTAL SE, Sponsored ADR | 11,457 | 347,491 | ||||||
Germany (0.27%) | ||||||||
K+S AG | 70,154 | 469,965 | ||||||
Nordex SE(a) | 10,156 | 145,486 | ||||||
Salzgitter AG(a) | 10,429 | 151,826 | ||||||
thyssenkrupp AG(a) | 17,747 | 84,639 | ||||||
Varta AG(a) | 3,960 | 496,252 | ||||||
1,348,168 | ||||||||
Great Britain (1.57%) | ||||||||
Anglo American PLC | 57,298 | 1,344,451 | ||||||
BP PLC, Sponsored ADR | 117,722 | 1,822,337 | ||||||
CNH Industrial N.V.(a) | 64,438 | 500,683 | ||||||
Evraz PLC | 18,181 | 84,675 | ||||||
Kazakhmys PLC | 16,882 | 137,785 | ||||||
Pentair PLC | 14,791 | 736,000 |
12 | October 31, 2020
ALPS | CoreCommodity Management
CompleteCommodities® Strategy Fund
Consolidated Statement of Investments | October 31, 2020 |
Shares | Value (Note 2) | |||||||
Great Britain (continued) | ||||||||
Rio Tinto PLC, Sponsored ADR | 31,219 | $ | 1,772,303 | |||||
Severn Trent PLC | 16,661 | 524,501 | ||||||
Subsea 7 SA(a) | 50,511 | 332,696 | ||||||
United Utilities Group PLC | 43,789 | 489,797 | ||||||
7,745,228 | ||||||||
India (0.03%) | ||||||||
Vedanta, Ltd., ADR | 27,652 | 141,578 | ||||||
Israel (0.13%) | ||||||||
SolarEdge Technologies, Inc.(a) | 2,438 | 628,248 | ||||||
Italy (0.08%) | ||||||||
Eni SpA, Sponsored ADR | 10,981 | 153,514 | ||||||
ERG SpA | 10,237 | 232,012 | ||||||
385,526 | ||||||||
Japan (2.13%) | ||||||||
Daido Steel Co., Ltd. | 6,200 | 201,643 | ||||||
GS Yuasa Corp. | 21,600 | 373,840 | ||||||
Hitachi Metals, Ltd. | 34,000 | 448,484 | ||||||
Inpex Corp. | 207,133 | 973,394 | ||||||
Japan Petroleum Exploration Co., Ltd. | 19,200 | 300,943 | ||||||
JFE Holdings, Inc.(a) | 236,400 | 1,643,815 | ||||||
Kobe Steel, Ltd.(a) | 77,200 | 298,639 | ||||||
Kubota Corp. | 114,300 | 1,976,600 | ||||||
Kurita Water Industries, Ltd. | 10,016 | 296,572 | ||||||
Maruha Nichiro Corp. | 5,600 | 116,712 | ||||||
Maruichi Steel Tube, Ltd. | 5,300 | 120,990 | ||||||
Morinaga Milk Industry Co., Ltd. | 6,500 | 312,288 | ||||||
Nippon Steel Corp.(a) | 99,290 | 954,538 | ||||||
Nippon Suisan Kaisha, Ltd. | 65,500 | 250,876 | ||||||
Sumitomo Forestry Co., Ltd. | 28,759 | 450,222 | ||||||
Sumitomo Metal Mining Co., Ltd. | 35,700 | 1,099,012 | ||||||
Tokyo Steel Manufacturing Co., Ltd. | 50,500 | 319,318 | ||||||
Yamato Kogyo Co., Ltd. | 14,400 | 343,718 | ||||||
10,481,604 | ||||||||
Luxembourg (0.46%) | ||||||||
APERAM SA | 14,100 | 379,008 | ||||||
ArcelorMittal(a) | 13,403 | 182,281 | ||||||
ArcelorMittal SA(a) | 5,056 | 68,612 | ||||||
Tenaris SA, ADR | 130,745 | 1,249,923 | ||||||
Ternium SA, Sponsored ADR(a) | 19,564 | 391,671 | ||||||
2,271,495 | ||||||||
Malaysia (0.15%) | ||||||||
Lynas Corp., Ltd.(a) | 361,944 | 719,980 | ||||||
Mexico (0.31%) | ||||||||
Grupo Mexico SAB de CV, Series B | 537,400 | 1,532,280 | ||||||
Monaco (0.05%) | ||||||||
Endeavour Mining Corp.(a) | 9,058 | 222,184 |
Shares | Value (Note 2) | |||||||
Netherlands (0.43%) | ||||||||
Core Laboratories N.V. | 24,311 | $ | 351,294 | |||||
OCI N.V.(a) | 15,679 | 187,900 | ||||||
Royal Dutch Shell PLC, Class A, Sponsored ADR | 43,405 | 1,108,998 | ||||||
Royal Dutch Shell PLC, Class B | 2,551 | 30,702 | ||||||
SBM Offshore N.V. | 27,872 | 449,260 | ||||||
2,128,154 | ||||||||
Norway (1.63%) | ||||||||
Aker BP ASA | 34,645 | 538,184 | ||||||
DNO ASA | 516,958 | 213,733 | ||||||
Equinor ASA | 79,410 | 1,008,570 | ||||||
Leroy Seafood Group ASA | 70,514 | 331,200 | ||||||
Mowi ASA | 54,411 | 858,628 | ||||||
NEL ASA(a) | 476,921 | 903,221 | ||||||
Norsk Hydro ASA(a) | 580,471 | 1,625,281 | ||||||
Salmar ASA(a) | 12,666 | 640,156 | ||||||
TGS NOPEC Geophysical Co. ASA | 21,048 | 194,018 | ||||||
Yara International ASA | 48,494 | 1,688,995 | ||||||
8,001,986 | ||||||||
Peru (0.41%) | ||||||||
Cia de Minas Buenaventura SAA, ADR | 24,873 | 305,192 | ||||||
Southern Copper Corp. | 32,636 | 1,708,168 | ||||||
2,013,360 | ||||||||
South Africa (0.59%) | ||||||||
African Rainbow Minerals, Ltd. | 36,752 | 513,914 | ||||||
Anglo Platinum, Ltd. | 4,780 | 312,937 | ||||||
AngloGold Ashanti, Ltd., Sponsored ADR | 17,712 | 409,856 | ||||||
Gold Fields, Ltd., Sponsored ADR | 31,055 | 339,431 | ||||||
Impala Platinum Holdings, Ltd. | 54,000 | 473,743 | ||||||
Kumba Iron Ore, Ltd. | 15,133 | 446,641 | ||||||
Sasol, Ltd.(a) | 77,701 | 401,211 | ||||||
2,897,733 | ||||||||
South Korea (0.06%) | ||||||||
POSCO, Sponsored ADR | 6,691 | 309,860 | ||||||
Spain (0.24%) | ||||||||
Acerinox SA(a) | 44,206 | 350,299 | ||||||
Repsol SA | 21,441 | 133,346 | ||||||
Siemens Gamesa Renewable Energy SA | 24,558 | 695,872 | ||||||
1,179,517 | ||||||||
Sweden (1.36%) | ||||||||
AAK AB(a) | 17,147 | 334,138 | ||||||
Boliden AB | 96,238 | 2,630,256 | ||||||
Epiroc AB, Class A | 59,249 | 885,566 | ||||||
Holmen AB, B Shares | 8,330 | 315,848 | ||||||
Lundin Energy AB | 41,768 | 797,255 | ||||||
PowerCell Sweden AB(a) | 11,159 | 279,151 | ||||||
SSAB AB, A Shares(a) | 190,388 | 553,722 |
13 | October 31, 2020
ALPS | CoreCommodity Management
CompleteCommodities® Strategy Fund
Consolidated Statement of Investments | October 31, 2020 |
Shares | Value (Note 2) | |||||||
Sweden (continued) | ||||||||
Svenska Cellulosa AB SCA, Class B(a) | 65,044 | $ | 882,638 | |||||
6,678,574 | ||||||||
Switzerland (0.22%) | ||||||||
Bucher Industries AG | 799 | 307,593 | ||||||
Glencore PLC(a) | 380,289 | 768,066 | ||||||
1,075,659 | ||||||||
United States (11.19%) | ||||||||
AGCO Corp. | 23,787 | 1,832,313 | ||||||
Alcoa Corp.(a) | 196,015 | 2,532,513 | ||||||
Allegheny Technologies, Inc.(a) | 112,906 | 1,039,864 | ||||||
American Water Works Co., Inc. | 201 | 30,253 | ||||||
Archer-Daniels-Midland Co. | 16,859 | 779,560 | ||||||
Archrock, Inc. | 15,155 | 89,869 | ||||||
Baker Hughes Co. | 46,640 | 688,873 | ||||||
Bunge, Ltd. | 27,873 | 1,581,235 | ||||||
Cabot Oil & Gas Corp. | 19,208 | 341,710 | ||||||
California Water Service Group | 8,661 | 386,021 | ||||||
Cal-Maine Foods, Inc.(a) | 14,471 | 554,963 | ||||||
Century Aluminum Co.(a) | 5,584 | 36,743 | ||||||
CF Industries Holdings, Inc. | 109,196 | 3,014,901 | ||||||
ChampionX Corp.(a) | 42,298 | 369,262 | ||||||
Chevron Corp. | 7,427 | 516,177 | ||||||
Cleveland-Cliffs, Inc. | 165,255 | 1,368,311 | ||||||
Commercial Metals Co. | 81,640 | 1,685,866 | ||||||
Compass Minerals International, Inc. | 7,430 | 448,623 | ||||||
ConocoPhillips | 40,118 | 1,148,177 | ||||||
Corteva, Inc. | 50,406 | 1,662,390 | ||||||
Darling Ingredients, Inc.(a) | 17,305 | 744,115 | ||||||
Deere & Co. | 4,669 | 1,054,774 | ||||||
Devon Energy Corp. | 43,208 | 385,847 | ||||||
Dril-Quip, Inc.(a) | 2,365 | 61,254 | ||||||
Enphase Energy, Inc.(a) | 10,981 | 1,077,126 | ||||||
EOG Resources, Inc. | 39,658 | 1,357,890 | ||||||
Evoqua Water Technologies Corp.(a) | 30,618 | 702,071 | ||||||
Exxon Mobil Corp. | 17,179 | 560,379 | ||||||
First Solar, Inc.(a) | 7,288 | 634,384 | ||||||
FMC Corp. | 17,858 | 1,834,730 | ||||||
Freeport-McMoRan, Inc. | 84,491 | 1,465,074 | ||||||
Fresh Del Monte Produce, Inc. | 10,904 | 234,763 | ||||||
Green Plains, Inc.(a) | 18,901 | 285,405 | ||||||
Halliburton Co. | 39,187 | 472,595 | ||||||
Harsco Corp.(a) | 20,191 | 260,464 | ||||||
Helix Energy Solutions Group, Inc.(a) | 72,857 | 180,685 | ||||||
Helmerich & Payne, Inc. | 96,817 | 1,439,669 | ||||||
Hess Corp. | 1,266 | 47,121 | ||||||
HollyFrontier Corp. | 22,080 | 408,701 | ||||||
Hormel Foods Corp. | 8,346 | 406,367 | ||||||
Ingredion, Inc. | 14,354 | 1,017,555 | ||||||
Kinder Morgan, Inc. | 5,763 | 68,580 | ||||||
Livent Corp.(a) | 76,648 | 823,966 | ||||||
Magnolia Oil & Gas Corp.(a) | 91,528 | 397,232 | ||||||
Marathon Oil Corp. | 408,299 | 1,616,864 | ||||||
Marathon Petroleum Corp. | 24,420 | 720,390 | ||||||
Mosaic Co. | 45,915 | 849,428 |
Shares | Value (Note 2) | |||||||
United States (continued) | ||||||||
Murphy Oil Corp. | 18,288 | $ | 141,183 | |||||
National Oilwell Varco, Inc. | 14,052 | 118,037 | ||||||
New WEI, Inc.(a) | 68,768 | 103 | ||||||
Newmont Corp. | 6,583 | 413,676 | ||||||
Occidental Petroleum Corp. | 14,527 | 132,632 | ||||||
Oceaneering International, Inc.(a) | 15,572 | 63,534 | ||||||
Patterson-UTI Energy, Inc. | 187,413 | 479,777 | ||||||
PDC Energy, Inc.(a) | 67,573 | 805,470 | ||||||
Phillips 66 | 8,398 | 391,851 | ||||||
Pilgrim's Pride Corp.(a) | 45,023 | 753,685 | ||||||
Plug Power, Inc.(a) | 75,715 | 1,060,010 | ||||||
PotlatchDeltic Corp., REIT | 16,439 | 683,040 | ||||||
ProPetro Holding Corp.(a) | 49,120 | 194,024 | ||||||
Rayonier, Inc., REIT | 22,544 | 572,167 | ||||||
Renewable Energy Group, Inc.(a) | 21,902 | 1,235,273 | ||||||
RPC, Inc.(a) | 140,085 | 333,402 | ||||||
Sanderson Farms, Inc. | 8,094 | 1,035,789 | ||||||
Schlumberger NV | 64,653 | 965,916 | ||||||
Steel Dynamics, Inc. | 51,050 | 1,607,054 | ||||||
SunPower Corp.(a) | 41,418 | 662,274 | ||||||
TPI Composites, Inc.(a) | 13,921 | 461,064 | ||||||
Tyson Foods, Inc., Class A | 32,253 | 1,845,838 | ||||||
United States Steel Corp. | 117,056 | 1,130,761 | ||||||
Valero Energy Corp. | 15,840 | 611,582 | ||||||
Warrior Met Coal, Inc. | 10,153 | 152,295 | ||||||
Williams Cos., Inc. | 1,855 | 35,597 | ||||||
55,101,087 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $156,985,833) | 144,298,952 | |||||||
MASTER LIMITED PARTNERSHIPS (0.07%) | ||||||||
United States (0.07%) | ||||||||
Energy Transfer LP | 4,974 | 25,616 | ||||||
Enterprise Products Partners LP | 10,676 | 176,901 | ||||||
Magellan Midstream Partners LP | 2,054 | 72,999 | ||||||
MPLX LP | 1,555 | 26,762 | ||||||
Plains All American Pipeline LP | 3,090 | 19,313 | ||||||
321,591 | ||||||||
TOTAL MASTER LIMITED PARTNERSHIPS | ||||||||
(Cost $900,221) | 321,591 | |||||||
Principal Amount | Value (Note 2) | |||||||
GOVERNMENT BONDS (63.47%) | ||||||||
U.S. Treasury Bonds (63.47%) | ||||||||
United States Treasury Inflation Indexed Bonds | ||||||||
0.125%, 4/15/21(b) | $ | 20,286,360 | $ | 20,267,065 | ||||
0.625%, 7/15/21(b) | 118,026,574 | 119,099,953 | ||||||
0.125%, 1/15/22(b) | 117,811,476 | 119,086,779 |
14 | October 31, 2020
ALPS | CoreCommodity Management
CompleteCommodities® Strategy Fund
Consolidated Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
United States Treasury Notes | ||||||||
1.250%, 3/31/21(b) | $ | 53,500,000 | $ | 53,750,893 | ||||
312,204,690 | ||||||||
TOTAL GOVERNMENT BONDS | ||||||||
(Cost $310,149,741) | 312,204,690 | |||||||
Value (Note 2) | ||||||||
TOTAL INVESTMENTS (92.87%) | ||||||||
(Cost $468,035,795) | $ | 456,825,233 | ||||||
Other Assets In Excess Of Liabilities (7.13%) | 35,095,485 | |||||||
NET ASSETS - 100.00% | $ | 491,920,718 |
(a) | Non-Income Producing Security. |
(b) | Security, or portion of security, is being held as collateral for total return swap contracts and futures contracts aggregating a total market value of $64,669,416. |
For Fund compliance purposes, the Fund's industry and geographical classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine sub-classifications for reporting ease. Industries and regions are shown as a percent of net assets.
See Notes to Financial Statements.
15 | October 31, 2020
ALPS | CoreCommodity Management | |
CompleteCommodities® Strategy Fund |
Consolidated Statement of Investments | October 31, 2020 |
FUTURES CONTRACTS
Description | Counterparty | Position | Contracts | Expiration Date | Notional Amount/ Fair Value (Note 2) | Unrealized Appreciation | ||||||||||||||
Cocoa Future | Morgan Stanley | Short | (139 | ) | 12/15/20 | $ | (3,187,270 | ) | $ | 294,021 | ||||||||||
Corn Future | Morgan Stanley | Long | 430 | 12/14/20 | 8,567,750 | 1,528,696 | ||||||||||||||
Hard Red Winter Wheat Future | Morgan Stanley | Long | 70 | 12/14/20 | 1,894,375 | 310,487 | ||||||||||||||
LME Copper Future | Morgan Stanley | Long | 209 | 11/16/20 | 35,079,344 | 12,402 | ||||||||||||||
LME Zinc Future | Morgan Stanley | Long | 82 | 11/16/20 | 5,156,263 | 222,166 | ||||||||||||||
National Gas Future | Morgan Stanley | Long | 764 | 11/25/20 | 25,624,560 | 343,473 | ||||||||||||||
NY Harbor USLD Future | Morgan Stanley | Short | (142 | ) | 11/30/20 | (6,476,308 | ) | 506,822 | ||||||||||||
Soybean Meal Future | Morgan Stanley | Long | 96 | 12/14/20 | 3,634,560 | 737,655 | ||||||||||||||
Wheat Future | Morgan Stanley | Long | 64 | 12/14/20 | 1,915,200 | 247,842 | ||||||||||||||
WTI Crude Future | Morgan Stanley | Short | (514 | ) | 11/20/20 | (18,396,060 | ) | 1,194,554 | ||||||||||||
WTI Crude Future | Morgan Stanley | Short | (224 | ) | 02/22/21 | (8,288,000 | ) | 988,988 | ||||||||||||
$ | 45,524,414 | $ | 6,387,106 |
Description | Counterparty | Position | Contracts | Expiration Date | Notional Amount/ Fair Value (Note 2) | Unrealized Depreciation | ||||||||||||||
Brent Crude Future | Morgan Stanley | Long | 560 | 11/30/20 | $ | 21,246,400 | $ | (2,645,136 | ) | |||||||||||
Copper Future | Morgan Stanley | Short | (439 | ) | 12/29/20 | (33,446,313 | ) | (1,121,256 | ) | |||||||||||
Cotton #2 | Morgan Stanley | Short | (121 | ) | 12/08/20 | (4,169,660 | ) | (209,734 | ) | |||||||||||
Gold Future | Morgan Stanley | Long | 235 | 12/29/20 | 44,177,650 | (2,748,423 | ) | |||||||||||||
LME Aluminum Future | Morgan Stanley | Short | (92 | ) | 12/14/20 | (4,261,900 | ) | (491,341 | ) | |||||||||||
LME Nickel Future | Morgan Stanley | Long | 52 | 11/16/20 | 4,719,936 | (57,806 | ) | |||||||||||||
Low Sulfur Gasoil Future | Morgan Stanley | Long | 192 | 11/12/20 | 5,856,000 | (791,785 | ) | |||||||||||||
Natural Gas Future | Morgan Stanley | Short | (74 | ) | 02/24/21 | (2,430,160 | ) | (67,147 | ) | |||||||||||
Platinum Future | Morgan Stanley | Long | 141 | 01/27/21 | 5,981,220 | (140,204 | ) | |||||||||||||
Silver Future | Morgan Stanley | Long | 217 | 12/29/20 | 25,655,910 | (3,284,305 | ) | |||||||||||||
Soybean Future | Morgan Stanley | Long | 297 | 01/14/21 | 15,685,313 | (212,346 | ) | |||||||||||||
Sugar #11 | Morgan Stanley | Short | (120 | ) | 02/26/21 | (1,929,984 | ) | (252,986 | ) | |||||||||||
$ | 77,084,412 | $ | (12,022,469 | ) |
TOTAL RETURN SWAP CONTRACTS(a) | ||||||||||||||||||
Swap Counterparty | Reference Obligation | Notional Amount | Floating Rate Paid by Fund | Termination Date | Value | Unrealized Appreciation/ (Depreciation) | ||||||||||||
Citigroup | CRB 3m Fwd TR Index** | $ | 64,858,068 | USB3MTA + 24 bps* | 9/30/21 | $ | 64,858,071 | $ | 3 | |||||||||
Societe Generale | CRB 3m Fwd TR Index** | 38,269,709 | USB3MTA + 28 bps* | 11/30/20 | 38,269,711 | 2 | ||||||||||||
UBS | CRB 3m Fwd TR Index** | 55,740,960 | USB3MTA + 25 bps* | 11/30/20 | 55,740,963 | 3 | ||||||||||||
Bank of America -Merrill Lynch | CRB 3m Fwd TR Index** | 65,354,430 | USB3MTA + 30 bps* | 6/29/21 | 65,354,093 | (337 | ) | |||||||||||
224,223,167 | 224,222,838 | (329 | ) |
(a) | For long positions in the total return swap, the Fund receives payments based on any positive return of the Reference Obligation less the rate paid by the Fund. The Fund makes payments on any negative return of such Reference Obligations plus the rate paid by the fund. For short positions in the total return swap, the Fund makes payments based on any positive return of the Reference Obligation less the rate paid by the Fund. The Fund receives payments on any negative return of such Reference Obligations plus the rate paid by the Fund. |
* | United States Auction Results 3 Month Treasury Bill High Discount. Total return swap resets monthly. |
** | CRB - Commodity Research Bureau |
See Notes to Financial Statements.
16 | October 31, 2020
ALPS | CoreCommodity Management | |
CompleteCommodities® Strategy Fund |
Consolidated Statement of Assets and Liabilities | October 31, 2020 |
ASSETS | ||||
Investments, at value | $ | 456,825,233 | ||
Cash | 40,087,768 | |||
Foreign currency, at value (Cost $150,851) | 149,258 | |||
Unrealized appreciation on total return swap contracts | 8 | |||
Receivable for shares sold | 761,594 | |||
Receivable for variation margin on futures contracts | 1,351,493 | |||
Dividends and interest receivable | 475,296 | |||
Prepaid expenses and other assets | 26,905 | |||
Total Assets | 499,677,555 | |||
LIABILITIES | ||||
Payable due to broker for total return swap contracts | 6,589,656 | |||
Payable due to broker for futures contracts | 314,579 | |||
Payable for shares redeemed | 192,824 | |||
Unrealized depreciation on total return swap contracts | 337 | |||
Investment advisory fees payable | 386,016 | |||
Administration and transfer agency fees payable | 166,142 | |||
Distribution and services fees payable | 29,571 | |||
Trustees' fees and expenses payable | 7,046 | |||
Professional fees payable | 38,687 | |||
Accrued expenses and other liabilities | 31,979 | |||
Total Liabilities | 7,756,837 | |||
NET ASSETS | $ | 491,920,718 | ||
NET ASSETS CONSIST OF | ||||
Paid-in capital | $ | 605,748,678 | ||
Total distributable earnings | (113,827,960 | ) | ||
NET ASSETS | $ | 491,920,718 | ||
INVESTMENTS, AT COST | $ | 468,035,795 | ||
PRICING OF SHARES | ||||
Investor Class: | ||||
Net Asset Value, offering and redemption price per share | $ | 6.06 | ||
Net Assets | $ | 49,059,530 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 8,093,525 | |||
Class A: | ||||
Net Asset Value, offering and redemption price per share | $ | 6.07 | ||
Net Assets | $ | 1,253,856 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 206,660 | |||
Maximum offering price per share ((NAV/0.9450), based on maximum sales charge of 5.50% of the offering price) | $ | 6.42 | ||
Class C: | ||||
Net Asset Value, offering and redemption price per share(a) | $ | 5.73 | ||
Net Assets | $ | 2,353,778 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 410,871 | |||
Class I: | ||||
Net Asset Value, offering and redemption price per share | $ | 6.12 | ||
Net Assets | $ | 439,253,554 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 71,764,118 |
(a) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. For a description of a possible sales charge, please see the Fund's Prospectus. |
See Notes to Financial Statements.
17 | October 31, 2020
ALPS | CoreCommodity Management | |
CompleteCommodities® Strategy Fund |
Consolidated Statement of Operations | For the Year Ended October 31, 2020 |
INVESTMENT INCOME | ||||
Dividends | $ | 2,579,340 | ||
Foreign taxes withheld on dividends | (142,714 | ) | ||
Interest and other income, net of premium amortization and accretion of discount | 6,184,446 | |||
Total Investment Income | 8,621,072 | |||
EXPENSES | ||||
Investment advisory fees | 4,102,117 | |||
Investment advisory fees - subsidiary (Note 8) | 876,554 | |||
Administrative fees | 570,491 | |||
Transfer agency fees | 535,472 | |||
Distribution and service fees | ||||
Investor Class | 146,037 | |||
Class A | 2,411 | |||
Class C | 39,877 | |||
Professional fees | 53,335 | |||
Reports to shareholders and printing fees | 37,620 | |||
State registration fees | 61,789 | |||
Insurance fees | 8,602 | |||
Custody fees | 59,937 | |||
Trustees' fees and expenses | 33,365 | |||
Repayment of previously waived fees | ||||
Class A | 6 | |||
Miscellaneous expenses | 32,204 | |||
Total Expenses | 6,559,817 | |||
Less fees waived/reimbursed by investment advisor (Note 8) | ||||
Waiver of investment advisory fees - subsidiary | (876,554 | ) | ||
Class C | (112 | ) | ||
Net Expenses | 5,683,151 | |||
Net Investment Income | 2,937,921 | |||
Net realized loss on investments | (32,703,958 | ) | ||
Net realized gain on futures contracts | 12,368,843 | |||
Net realized loss on total return swap contracts | (33,513,859 | ) | ||
Net realized gain on foreign currency transactions | 51,240 | |||
Net Realized Loss | (53,797,734 | ) | ||
Net change in unrealized appreciation on investments | 12,532,396 | |||
Net change in unrealized depreciation on futures contracts | (4,435,260 | ) | ||
Net change in unrealized depreciation on total return swap contracts | (353 | ) | ||
Net change in unrealized appreciation on translation of assets and liabilities denominated in foreign currencies | 1,926 | |||
Net Change in Unrealized Appreciation | 8,098,709 | |||
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS | (45,699,025 | ) | ||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (42,761,104 | ) |
See Notes to Financial Statements.
18 | October 31, 2020
ALPS | CoreCommodity Management |
CompleteCommodities® Strategy Fund |
Consolidated Statements of Changes in Net Assets |
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 2,937,921 | $ | 6,482,181 | ||||
Net realized loss | (53,797,734 | ) | (53,250,171 | ) | ||||
Net change in unrealized appreciation/(depreciation) | 8,098,709 | (16,691,224 | ) | |||||
Net Decrease in Net Assets Resulting from Operations | (42,761,104 | ) | (63,459,214 | ) | ||||
TOTAL DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class | (375,275 | ) | (1,405,470 | ) | ||||
Class A | (7,077 | ) | (5,288 | ) | ||||
Class C | (53,444 | ) | (261,410 | ) | ||||
Class I | (4,950,473 | ) | (17,784,130 | ) | ||||
Net Decrease in Net Assets from Distributions | (5,386,269 | ) | (19,456,298 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class | 21,811,745 | 16,812,892 | ||||||
Class A | 856,402 | 588,711 | ||||||
Class C | 336,823 | 1,993,315 | ||||||
Class I | 187,684,821 | 238,498,751 | ||||||
Dividends reinvested | ||||||||
Investor Class | 358,287 | 1,325,215 | ||||||
Class A | 5,821 | 5,288 | ||||||
Class C | 28,534 | 180,838 | ||||||
Class I | 3,950,674 | 14,260,972 | ||||||
Shares redeemed, net of redemption fees | ||||||||
Investor Class | (9,300,933 | ) | (21,808,221 | ) | ||||
Class A | (304,997 | ) | (3,256 | ) | ||||
Class C | (3,677,008 | ) | (3,827,991 | ) | ||||
Class I | (208,665,894 | ) | (323,750,425 | ) | ||||
Net Decrease in Net Assets Derived from Beneficial Interest Transactions | (6,915,725 | ) | (75,723,911 | ) | ||||
Net decrease in net assets | (55,063,098 | ) | (158,639,423 | ) | ||||
NET ASSETS | ||||||||
Beginning of year | 546,983,816 | 705,623,239 | ||||||
End of year | $ | 491,920,718 | $ | 546,983,816 |
See Notes to Financial Statements.
19 | October 31, 2020
ALPS | CoreCommodity Management |
CompleteCommodities® Strategy Fund – Investor Class |
Consolidated Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period(b) | $ | 6.68 | $ | 7.54 | $ | 7.64 | $ | 7.29 | $ | 7.15 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income/(loss)(c) | 0.02 | 0.06 | 0.05 | (0.01 | )(d) | (0.03 | )(d) | |||||||||||||
Net realized and unrealized gain/(loss) | (0.58 | ) | (0.71 | ) | 0.04 | 0.36 | 0.17 | |||||||||||||
Total from investment operations | (0.56 | ) | (0.65 | ) | 0.09 | 0.35 | 0.14 | |||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.06 | ) | (0.21 | ) | (0.19 | ) | (0.00 | )(e) | – | |||||||||||
Total distributions | (0.06 | ) | (0.21 | ) | (0.19 | ) | (0.00 | )(e) | – | |||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (e) | 0.00 | (e) | 0.00 | (e) | 0.00 | (e) | 0.00 | (e) | ||||||||||
Net increase/(decrease) in net asset value | (0.62 | ) | (0.86 | ) | (0.10 | ) | 0.35 | 0.14 | ||||||||||||
Net asset value, end of year | $ | 6.06 | $ | 6.68 | $ | 7.54 | $ | 7.64 | $ | 7.29 | ||||||||||
TOTAL RETURN(f) | (8.44 | )% | (8.71 | )% | 1.23 | % | 4.85 | % | 1.96 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 49,060 | $ | 39,226 | $ | 48,728 | $ | 47,845 | $ | 29,468 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.40 | %(g) | 1.39 | %(g) | 1.40 | %(g) | 1.38 | % | 1.41 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.40 | % | 1.39 | % | 1.40 | % | 1.38 | % | 1.41 | % | ||||||||||
Ratio of net investment income/(loss) to average net assets | 0.40 | % | 0.82 | % | 0.66 | % | (0.10 | )% | (0.48 | )% | ||||||||||
Portfolio turnover rate(h) | 98 | % | 81 | % | 42 | % | 66 | % | 50 | % |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Per share amounts and ratios to average net assets include income and expenses of the CoreCommodity Management Cayman Commodity Fund Ltd. (wholly-owned subsidiary). |
(c) | Calculated using the average shares method. |
(d) | The per share amount does not correspond to activity reflected in the Statement of Operations due to class specific expenses during the period. |
(e) | Less than $0.005 or ($0.005) per share. |
(f) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(g) | The ratio of operating expenses excluding fee waiver/reimbursements to average net assets is calculated excluding the waived Subsidiary management fee (see Note 8 for additional detail). The ratio inclusive of that fee would be for the period ended October 31, 2020, October 31, 2019 and October 31, 2018, respectively, 1.58%, 1.54% and 1.56%. |
(h) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
20 | October 31, 2020
ALPS | CoreCommodity Management |
CompleteCommodities® Strategy Fund – Class A |
Consolidated Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2019 | For the Year Ended October 31, 2019 | For the Period June 12, 2018 (Commencement of Operations) to October 31, 2018 | ||||||||||
Net asset value, beginning of period(a) | $ | 6.68 | $ | 7.54 | $ | 8.16 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(b) | 0.04 | 0.07 | (0.00 | )(c) | ||||||||
Net realized and unrealized loss | (0.59 | ) | (0.72 | ) | (0.62 | ) | ||||||
Total from investment operations | (0.55 | ) | (0.65 | ) | (0.62 | ) | ||||||
DISTRIBUTIONS: | ||||||||||||
From net investment income | (0.06 | ) | (0.21 | ) | – | |||||||
Total distributions | (0.06 | ) | (0.21 | ) | – | |||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (c) | – | – | ||||||||
Net (decrease) in net asset value | (0.61 | ) | (0.86 | ) | (0.62 | ) | ||||||
Net asset value, end of year | $ | 6.07 | $ | 6.68 | $ | 7.54 | ||||||
TOTAL RETURN(d) | (8.29 | )% | (8.71 | )% | (7.60 | )% | ||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||
Net assets, end of year (000s) | $ | 1,254 | $ | 751 | $ | 191 | ||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.34 | %(e) | 1.40 | %(e) | 1.48 | %(e)(f) | ||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.34 | % | 1.40 | % | 1.45 | %(f) | ||||||
Ratio of net investment income/(loss) to average net assets | 0.62 | % | 0.99 | % | (0.10 | )%(f) | ||||||
Portfolio turnover rate(g) | 98 | % | 81 | % | 42 | % |
(a) | Per share amounts and ratios to average net assets include income and expenses of the CoreCommodity Management Cayman Commodity Fund Ltd. (wholly-owned subsidiary). |
(b) | Calculated using the average shares method. |
(c) | Less than $0.005 or ($0.005) per share. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(e) | The ratio of operating expenses excluding fee waiver/reimbursements to average net assets is calculated excluding the waived Subsidiary management fee (see Note 8 for additional detail). The ratio inclusive of that fee would be for the period ended October 31, 2020, October 31, 2019 and October 31, 2018, respectively, 1.52%, 1.55 % and 1.64%. |
(f) | Annualized. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
21 | October 31, 2020
ALPS | CoreCommodity Management |
CompleteCommodities® Strategy Fund – Class C |
Consolidated Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period(a) | $ | 6.35 | $ | 7.22 | $ | 7.36 | $ | 7.07 | $ | 6.98 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income/(loss)(b) | (0.02 | )(c) | 0.01 | (0.00 | )(c)(d) | (0.06 | )(c) | (0.08 | )(c) | |||||||||||
Net realized and unrealized gain/(loss) | (0.54 | ) | (0.68 | ) | 0.04 | 0.35 | 0.17 | |||||||||||||
Total from investment operations | (0.56 | ) | (0.67 | ) | 0.04 | 0.29 | 0.09 | |||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.06 | ) | (0.20 | ) | (0.18 | ) | – | – | ||||||||||||
Total distributions | (0.06 | ) | (0.20 | ) | (0.18 | ) | – | – | ||||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | – | 0.00 | (d) | – | – | – | ||||||||||||||
Net increase/(decrease) in net asset value | (0.62 | ) | (0.87 | ) | (0.14 | ) | 0.29 | 0.09 | ||||||||||||
Net asset value, end of year | $ | 5.73 | $ | 6.35 | $ | 7.22 | $ | 7.36 | $ | 7.07 | ||||||||||
TOTAL RETURN(e) | (8.97 | )% | (9.35 | )% | 0.62 | % | 4.10 | % | 1.29 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 2,354 | $ | 6,702 | $ | 9,510 | $ | 7,642 | $ | 7,260 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 2.05 | %(f) | 2.05 | %(f) | 2.05 | %(f) | 2.05 | % | 2.05 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 2.05 | % | 2.05 | % | 2.05 | % | 2.05 | % | 2.05 | % | ||||||||||
Ratio of net investment income/(loss) to average net assets | (0.28 | )% | 0.17 | % | (0.04 | )% | (0.81 | )% | (1.13 | )% | ||||||||||
Portfolio turnover rate(g) | 98 | % | 81 | % | 42 | % | 66 | % | 50 | % |
(a) | Per share amounts and ratios to average net assets include income and expenses of the CoreCommodity Management Cayman Commodity Fund Ltd. (wholly-owned subsidiary). |
(b) | Calculated using the average shares method. |
(c) | The per share amount does not correspond to activity reflected in the Statement of Operations due to class specific expenses during the period. |
(d) | Less than $0.005 or ($0.005) per share. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(f) | The ratio of operating expenses excluding fee waiver/reimbursements to average net assets is calculated excluding the waived Subsidiary management fee (see Note 8 for additional detail). The ratio inclusive of that fee would be for the period ended October 31, 2020, October 31, 2019 and October 31, 2018, respectively, 2.23%, 2.20% and 2.21%. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
22 | October 31, 2020
ALPS | CoreCommodity Management |
CompleteCommodities® Strategy Fund – Class I |
Consolidated Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period(a) | $ | 6.73 | $ | 7.58 | $ | 7.67 | $ | 7.31 | $ | 7.15 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income/(loss)(b) | 0.04 | 0.08 | 0.07 | 0.01 | (0.02 | ) | ||||||||||||||
Net realized and unrealized gain/(loss) | (0.58 | ) | (0.72 | ) | 0.03 | 0.36 | 0.18 | |||||||||||||
Total from investment operations | (0.54 | ) | (0.64 | ) | 0.10 | 0.37 | 0.16 | |||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.07 | ) | (0.21 | ) | (0.19 | ) | (0.01 | ) | – | |||||||||||
Total distributions | (0.07 | ) | (0.21 | ) | (0.19 | ) | (0.01 | ) | – | |||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (c) | 0.00 | (c) | 0.00 | (c) | 0.00 | (c) | 0.00 | (c) | ||||||||||
Net increase/(decrease) in net asset value | (0.61 | ) | (0.85 | ) | (0.09 | ) | 0.36 | 0.16 | ||||||||||||
Net asset value, end of year | $ | 6.12 | $ | 6.73 | $ | 7.58 | $ | 7.67 | $ | 7.31 | ||||||||||
TOTAL RETURN(d) | (8.18 | )% | (8.48 | )% | 1.42 | % | 5.03 | % | 2.24 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 439,254 | $ | 500,305 | $ | 647,195 | $ | 482,710 | $ | 463,741 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.15 | %(e) | 1.14 | %(e) | 1.13 | %(e) | 1.15 | % | 1.15 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.15 | % | 1.14 | % | 1.13 | % | 1.15 | % | 1.15 | % | ||||||||||
Ratio of net investment income/(loss) to average net assets | 0.64 | % | 1.09 | % | 0.90 | % | 0.08 | % | (0.22 | )% | ||||||||||
Portfolio turnover rate(f) | 98 | % | 81 | % | 42 | % | 66 | % | 50 | % |
(a) | Per share amounts and ratios to average net assets include income and expenses of the CoreCommodity Management Cayman Commodity Fund Ltd. (wholly-owned subsidiary). |
(b) | Calculated using the average shares method. |
(c) | Less than $0.005 or ($0.005) per share. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(e) | The ratio of operating expenses excluding fee waiver/reimbursements to average net assets is calculated excluding the waived Subsidiary management fee (see Note 8 for additional detail). The ratio inclusive of that fee would be for the period ended October 31, 2020, October 31, 2019 and October 31, 2018, respectively, 1.33%, 1.29% and 1.29%. |
(f) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
23 | October 31, 2020
ALPS | Kotak India Growth Fund
Management Commentary | October 31, 2020 (Unaudited) |
Performance
ALPS I Kotak India Growth Fund (the Fund") was launched on February 14, 2011. During the 12-month period ended 31st October 2020 (hereinafter also referred to as the “period”), the Fund's Class A Shares, INDAX, delivered a total return of -1.80% at Net Asset Value, Class C, INFCX, delivered -3.55% with CDSC, Class I, INDIX, delivered -1.59% and Class II, INDSX, delivered -1.36%. The Fund outperformed the benchmark Nifty 500 Index {"NSE500") which returned -4.52% during the period without taking into account sales charges for Class A and C Shares.
Global ‘dovish wave’ from most global central banks in 2019 has left global interest rates low and foreign liquidity in surplus. Indian equity markets have seen steady gains since the second half of October 2019, though the economy had been slowing down even before the pandemic due to stress in nonbank financial sector and weak rural income growth. Despite negative sentiments, inflows from foreign portfolio investors (FPIs) reached US19bn in CY2019, the strongest since 2017.
Then comes year 2020, which turned out to be one of the worst the world has ever seen. The World Health Organization (WHO) on March 10, 2020 declared COVID-19 as a global pandemic. Global equities plunged, the worst month in March while volatility, bonds and the dollar spiked. Crude oil prices plummeted by as much as 60%, the most since the Gulf War in 1991. Countries have implemented lockdowns and social distancing measures with the steepest global GDP slide since WWII. Policy focus during the first half of the year was concentrated on repairing the badly battered economy, with unprecedented measures taken by both the Indian Government and Reserve Bank of India (RBI).
During the second half of the year, with countries coming out from lock-downs and the world getting accustomed with the “new normal”, equity markets around the world (including India) are gradually looking to recover and rebound from March lows as central banks further expanded stimulus plans coupled with COVID-19 curves flattening around the world. Positive development on COVID-19 vaccine front and improvement in the economic indicators also helped to buoy investors’ confidence. Policy bias has started to shift gears from repair to growth, such as the introduction of the agriculture and labour reforms with focus on enhancing India’s ease of doing business. In terms of market performance, the period was a roller-coaster ride with frontline Nifty Index exiting the period with a 6.6% correction, the midcap segment saw a correction of 3.3% and the broad-based NSE500 Index having lost 5.8% during the period (all in USD terms.)
Many Central Banks and Governments around the world took unprecedented measures in response to the virus, such as interest rates being lowered to support their respective economies. (1) Japan: The Bank of Japan (BOJ) kept the policy rate on hold at -0.1% and would continue to buy government bonds to keep 10-year bond yields around 0%. After being sworn in as the new Prime Minister, Mr. Yoshihide Suga pledged to continue aggressive fiscal and monetary policies undertaken by predecessor Mr. Shinzo Abe. (2) US: The Federal Reserve kept its policy rate unchanged between 0-0.25% and
reiterated its pledge to keep it there until the pandemic-hit economy reached full employment and until inflation rises to 2% and is on track to moderately exceed 2% for some time. (3) UK: The Bank of England (BoE) cut interest rates to a record low of 0.1% and boosted Quantitative Easing (QE) by a total of £300bn to £745bn as at end October (4) Eurozone: The European Central Bank (ECB) launched a new QE fund, released more long term refinancing operations (LTROs) and a new targeted longer term refinancing operation (TLTRO). ECB also loosened collateral rules to accept non-investment grade bonds as collateral to maintain access to its ultra-cheap liquidity during the pandemic. The move aims to limit financial turmoil and impact of expected wave of rating downgrades in response to the crisis. It also left its interest rates unchanged but decided to increase the pandemic emergency purchase program (PEPP) by EUR600bn to a total of EUR1.35tn.
In India, Moody’s downgraded India’s sovereign rating during June to Baa3 while keeping outlook as negative, whereas Fitch Ratings revised downward its rating outlook for India from stable to negative while retaining the sovereign rating at BBB-. S&P retained India’s credit rating at BBB- with a stable outlook. The Indian Government as well as the RBI announced a slew of measures via Fiscal and Monetary Policy stimulus. National lockdown was first announced in 25th March 2020 and further extended through May to stem the rate of proliferation and community transmission of COVID-19.
Starting June 8, 2020, State and Central governments started to announce guidelines and ease restrictions. Economic activity is slowly returning to normalcy with high frequency economic indicators in India showing improving trends as the country witnessed more businesses and activities being opened up as part of the ‘unlock’ process. The Nikkei Manufacturing Purchasing Managers’ Index (PMI) accelerated to 58.9 in October against 56.8 in September, the highest since October 2007, signaling a gradual recovery in growth.
In the midst of stabilizing the economy through a series of monetary and fiscal stimulus announced in the during the first half of CY2020, major progresses on long overdue reforms in labour and agriculture were also pushed and announced in the month of September. India’s Parliament amended and enacted three major agriculture bills through three areas of (1) pricing through development of new distribution channels and markets, (2) processing through creation of storage and transportation infrastructure and (3) production through crop diversification and contract farming. The objective behind the bills serve to provide greater freedom to farmers and traders for sale and purchase, thereby creating a modern agriculture value chain. In terms of labour, the Parliament passed three major bills namely (1) Code to Industrial Relations, (2) Code on Social Security and (3) Code on Occupational Safety, Health and Working Conditions. The approval of the codes marks the culmination of a radical overhaul of central government labour laws from 41 laws to 4 codes (12 repealed between year 2016-2019, and 29 now subsumed). The objectives are to (1) improve the ease of doing business in India, (2) reduction in compliance for companies, (3) formalisation of jobs and (4) reduction in the share of contract workers.
24 | October 31, 2020
ALPS | Kotak India Growth Fund
Management Commentary | October 31, 2020 (Unaudited) |
Looking at economic numbers, the fiscal deficit for the April to October 2020 period (India fiscal year starts April) was at 119.7% of FY2021 Budget Estimate (Period from April 2020 to March 2021). Gross GST collections for the April to October 2020 period were at Rs5.6tn (~US75bn) —contraction of 20% over the same period last year. Central Goods & Services Tax (CGST) collection for the month of October was Rs192bn/~US2.59bn (Sept: Rs192bn), State Goods & Service Tax (SGST) was Rs255bn/~US3.45bn (Sept: Rs254bn/~US3.43bn), Integrated Goods & Services Tax (IGST) was Rs520bn/~US7.03bn (Sept: Rs525bn/~US7.09bn), and compensation cess was at Rs82bn/~US1.11bn (Sept: Rs80bn/US1.08bn). After allocations from IGST, CGST for October was Rs415bn/~US5.61bn (Sept: Rs443bn/~US5.99bn) and SGST was Rs418bn/~US5.65bn (Sept: Rs448bn/~US6.05bn).
Current account in 1QFY21 (Note: April to June 2020 quarter) registered a surplus of US$19.8bn (3.9% of GDP) against a surplus of US$0.6bn (0.1% of GDP) in 4QFY20 (Note: January to March 2020 quarter). Trade deficit moderated to US$10bn (US$35bn in 4QFY20). Net invisible receipts moderated to US$30bn (US$36bn in 4QFY20), supported by software exports (US$21bn) and transfers (US$17bn). The capital account balance moderated sharply to US$0.6bn (US$17.4bn in 4QFY20). Net Foreign Direct Investment (FDI) flows softened to around US$0.4bn (US$12bn in 4QFY20). Overall, Balance of Payment (BOP) surplus in 1QFY21 stood at US$19.8bn (US$18.8bn in 4QFY20).
October consumer price index (CPI) inflation rose to 7.61% as against a slightly downward revised print of 7.27% in September amid an increase in momentum despite favorable base effects. Core inflation rose to 5.5% and was led by inflation in the personal care segment (12.1%) and transport and communication segment (11.2%). October wholesale price index (WPI) inflation rose to 1.5%, (1.3% in September) the highest level in eight months on the back of costlier manufactured items. Infrastructure output, comprising eight core sectors of the India Industrial Production (IIP) (which accounts for 40.3% of the total weight of the IIP), fell by 2.5% in October as against a fall of 0.2% in September and a fall of 5.5% in October last year.
Despite structural headwinds, last few years of regulatory changes like Demonetization and GST has started the gradual shift of market share from unorganized to organized. However, this pandemic has accelerated that shift. Some of the notable longstanding reforms introduced such as Labour and Agriculture reforms are positive for India’s growth. However, the key to success would be the focus on their effective and efficient implementation at the fastest. Continuous focus on productivity-enhancement reforms and investments to transform India from the inside out is required. The creation of a robust ecosystem in India through continuous effort to upgrade systems (legal & judicial) and create an infrastructure to attract foreign investments into India is pertinent.
Market Outlook and Valuation
After being in a year of almost nothing positive, weathering through a pandemic like no other and incurring an extraordinary large loss of
lives and livelihoods, the world is trying to pick up from whatever is left behind, relearn and learn while adapting to the “new normal”.
Policy responses from governments and central banks have continued in response to the life and livelihood crisis, especially during the first half of the year. There are undeniable tailwinds in the form of unprecedented liquidity leading to a weaker greenback, US Federal Reserve’s flexible inflation approach while coupled with gradual re-opening of the economies and hopes of a vaccine being commercially available in the near-to-medium term. Climbing out of the COVID-19 hole and taking reference from China’s economic recovery from the coronavirus, markets continued on their onward march through the second half of the year, with various global markets touching new highs. Improvement in various countries’ manufacturing production also points to sign of global recovery. However, sustainability of this recovery still hinges on household behavior returning to normalcy and recovery of the labour market.
On the domestic front, in the wake of COVID-19 and given the weak healthcare infrastructure, India implemented what can be termed as the most stringent lockdown beginning end March 2020 and this continued for around two months. Subsequently, economic activities were opened up gradually and the recovery since opening up from June has surprised positively as reflected in various high frequency economic indicators. The Q2FY21 (Note: July to September 2020 quarter) earning season is underway. So far, the numbers reported have been better than expectations and have resulted in earnings upgrades. Demand recovery and cost optimization have been the key themes. The earnings trend corroborates with the improvement in the high frequency economic indicators and so far earnings upgrades have been ahead of the downgrades. We believe that the recovery will sustain and gather momentum in coming months and expect to see very strong recovery in CY21 as the weakness in CY20 becomes the base and the pent up demand adds to the recovery.
Adding to that, liquidity and a fairly benign cost of money can add to the recovery though the fiscal challenges will be a headwind. On the macro front, other than the fiscal challenge, we expect relatively benign macro conditions in the coming quarters. Foreign currency reserves have continued to surge and reached a high of around $560bn. Margins have room to surprise on the upside and if we get revenue traction back, earnings are expected to be strong. On the currency and interest rates outlook, we see more stability than volatility. As discussed above, the Fed has guided for a loose monetary policy and the Indian central bank has also indicated such despite the sticky levels of inflations.
India is witnessing balance current account mainly driven by benign oil prices and low demand of gold. In our view, RBI is likely to hold the course in line with other global central bankers and while oil has moved up a little, we do not expect oil price rise to be a big concern as global demand remains weak. Gold demand is also not likely to shoot up. Given sharp foreign fund flows, we are witnessing robust balance of payment surplus. As such, we see the Indian currency outlook stable for the time being. MSCI announced that it will implement changes in Foreign Ownership Limits (FOL) in its indices containing
25 | October 31, 2020
ALPS | Kotak India Growth Fund
Management Commentary | October 31, 2020 (Unaudited) |
Indian stocks with the November rebalance, which could potentially trigger foreign inflows of more than US2bn into Indian markets. As GDP recovery gains pace, we expect the trade deficit to rise but we do not see any concern of funding given strong flows (both Foreign Direct Investments (FDI) and Foreign Institutional Investors (FII)).
On a structural front, Indian policy makers are now focusing on economic recovery via increasing the footprint of manufacturing in the overall GDP. Import substitution and export will remain strong themes vis-à-vis driving manufacturing as the next engine of growth and channeling public capex with policy measures (infrastructure spending). In the last few quarters, we have seen major policy announcements to this effect starting with steep corporate tax rate cut last year to the recent production linked incentives and labour law changes. There seems to be some initial success too in getting global players in the electronic value chain to put investments in India, though it will a long journey to be successful in embedding India in the global supply chains and reduce import dependence.
As a whole, while the data on COVID-19 trends shows improvement, the risk of a second wave cannot be ruled out with the onset of winter (though milder in India than in US and Europe) and the trends post the festive season would need to be monitored. 2020 has been a year of unprecedented economic volatility. Clearly from a highly uncertain environment and with economic activity having a downward bias, we are now into a more certain and stable environment.
Mr. Nitin Tejpal Jain
Fund Manager
Kotak Mahindra Asset Management (Singapore) Pte Ltd.
The views above are based on publicly available data, Kotak Group internal estimates and are based on the views of the research team at Kotak group.
The views of the author and information discussed in this commentary are as of the date of publication, are subject to change, and may not reflect the writer's current views. The views expressed are those of the author only, and represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the fund or any securities or any sectors mentioned in this letter. The subject matter contained in this letter has been derived from several sources believed to be reliable and accurate at the time of compilation. Neither ALPS Advisors, Inc., Kotak Mahindra Asset Management (Singapore) Pte Ltd., nor the Fund accepts any liability for losses either direct or consequential caused by the use of this information.
Diversification cannot guarantee gain or prevent losses.
Past performance is no guarantee of future results. Dividends are not guaranteed and are subject to change or elimination. Investments in international and emerging markets securities include exposure to risks such as currency fluctuations, foreign taxes and regulations, and the potential for illiquid markets and political instability.
ALPS Portfolio Solutions Distributor, Inc., ALPS Distributors, Inc. and ALPS Advisors Inc. are affiliated.
26 | October 31, 2020
ALPS | Kotak India Growth Fund
Performance Update | October 31, 2020 (Unaudited) |
Performance of $10, 000 Initial Investment (as of October 31, 2020)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception. Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns (as of October 31, 2020)
1 Year | 3 Year | 5 Year | Since Inception^ | Total Expense Ratio | What You Pay* | |
Investor# (NAV) | -1.48% | -0.99% | 5.62% | 5.77% | 2.76% | 1.40% |
Class A (NAV) | -1.80% | -1.17% | 5.51% | 5.71% | 2.70% | 1.40% |
Class A (LOAD) | -7.23% | -3.03% | 4.32% | 5.10% | ||
Class C (NAV) | -2.58% | -1.85% | 4.76% | 4.99% | 3.37% | 2.00% |
Class C (LOAD) | -3.55% | -1.85% | 4.76% | 4.99% | ||
Class I | -1.59% | -0.85% | 5.81% | 6.06% | 2.33% | 1.00% |
Class II | -1.36% | -0.77% | 5.86% | 6.08% | 2.33% | 0.75% |
Nifty 500 Index1 | -4.52% | -2.33% | 4.80% | 4.00% | ||
Morningstar India Index2 | -1.86% | -0.72% | 5.95% | 4.31% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million. The Fund imposes a 2.00% redemption fee on shares held for less than 30 days.
27 | October 31, 2020
ALPS | Kotak India Growth Fund
Performance Update | October 31, 2020 (Unaudited) |
Performance shown for Class A shares prior to June 12, 2018 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class A shares. Performance shown for Class II shares prior to December 19, 2019 reflects the historical performance of the Fund’s Class I shares, calculated using the fees and expenses of Class II shares.
1 | Nifty 500 Index (formerly the CNX 500 Index) - India's first broad based benchmark of the Indian capital market. The Nifty 500 companies are disaggregated into 72 industry indices. Industry weightages in the index reflect the industry weightages in the market. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
2 | Morningstar India NR Index: measures the performance of India's equity markets targeting the top 97% of stocks by market capitalization. |
^ | Fund Inception date of February 14, 2011 for Investor Class and Classes C and I; Fund Inception date of June 12, 2018 for Class A; Fund Inception date of December 19, 2019 for Class II. |
* | What You Pay reflects the Advisor's and Sub-Advisor’s decision to contractually limit expenses through February 28, 2021. Please see the prospectus dated February 28, 2020 for additional information. |
# | Prior to December 1, 2017, Investor Class was known as Class A. |
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Investing in India involves risk and considerations not present when investing in more established securities markets. The Fund may be more susceptible to economic, market, political and local risks of the region than a fund that is more geographically diversified. Investments in India are subject to a number of risks including, but not limited to, risk of losing some or all of the capital invested, high market volatility, variable market liquidity, geopolitical risks (including political instability), exchange rate fluctuations (between the currency of the fund’s share class and the Indian Rupee), changes in tax regime and restrictions on investment activities of foreign investors.
Top Ten Holdings (as a % of Net Assets) †
Infosys, Ltd. | 7.01% |
Reliance Industries, Ltd. | 6.68% |
HDFC Bank, Ltd. | 6.26% |
ICICI Bank, Ltd. | 4.60% |
Tata Consultancy Services, Ltd. | 4.40% |
Axis Bank, Ltd. | 2.94% |
Tech Mahindra, Ltd. | 2.79% |
Hindustan Unilever, Ltd. | 2.64% |
Housing Development Finance Corp., Ltd. | 2.54% |
Aavas Financiers, Ltd. | 2.45% |
Top Ten Holdings | 42.31% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents approximate values only. |
Industry Sector Allocation (as a % of Net Assets)
28 | October 31, 2020
ALPS | Kotak India Growth Fund
Consolidated Statement of Investments | October 31, 2020 |
Shares | Value (Note 2) | |||||||
COMMON STOCKS (98.76%) | ||||||||
Communication Services (2.00%) | ||||||||
Wireless Telecommunication Services (2.00%) | ||||||||
Bharti Airtel, Ltd. | 557,218 | $ | 3,258,071 | |||||
TOTAL COMMUNICATION SERVICES | 3,258,071 | |||||||
Consumer Discretionary (10.16%) | ||||||||
Auto Components (1.20%) | ||||||||
MRF, Ltd. | 2,224 | 1,959,257 | ||||||
Automobiles (3.64%) | ||||||||
Hero MotoCorp, Ltd. | 50,312 | 1,898,151 | ||||||
Mahindra & Mahindra, Ltd. | 185,500 | 1,485,039 | ||||||
Maruti Suzuki India, Ltd. | 27,043 | 2,539,982 | ||||||
5,923,172 | ||||||||
Hotels, Restaurants & Leisure (0.85%) | ||||||||
Jubilant Foodworks, Ltd. | 47,054 | 1,379,994 | ||||||
Household Durables (2.19%) | ||||||||
Crompton Greaves Consumer Electricals, Ltd. | 709,285 | 2,864,269 | ||||||
Dixon Technologies India, Ltd.(a) | 5,505 | 691,239 | ||||||
3,555,508 | ||||||||
Textiles, Apparel & Luxury Goods (2.28%) | ||||||||
Page Industries, Ltd. | 5,197 | 1,407,000 | ||||||
Titan Co., Ltd. | 145,709 | 2,293,341 | ||||||
3,700,341 | ||||||||
TOTAL CONSUMER DISCRETIONARY | 16,518,272 | |||||||
Consumer Staples (7.90%) | ||||||||
Beverages (0.40%) | ||||||||
United Spirits, Ltd.(b) | 95,000 | 646,130 | ||||||
Food Products (1.91%) | ||||||||
Britannia Industries, Ltd. | 66,575 | 3,117,911 | ||||||
Household Products (2.64%) | ||||||||
Hindustan Unilever, Ltd. | 153,453 | 4,290,602 | ||||||
Personal Products (2.95%) | ||||||||
Dabur India, Ltd. | 308,398 | 2,128,246 | ||||||
Emami, Ltd. | 546,856 | 2,666,224 | ||||||
4,794,470 | ||||||||
TOTAL CONSUMER STAPLES | 12,849,113 | |||||||
Energy (8.09%) | ||||||||
Oil, Gas & Consumable Fuels (8.09%) | ||||||||
Petronet LNG, Ltd. | 737,746 | 2,298,162 |
Shares | Value (Note 2) | |||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
Reliance Industries, Ltd. | 402,964 | $ | 10,860,319 | |||||
13,158,481 | ||||||||
TOTAL ENERGY | 13,158,481 | |||||||
Financials (29.16%) | ||||||||
Banks (16.11%) | ||||||||
AU Small Finance Bank, Ltd.(a)(b)(c) | 297,022 | 3,107,780 | ||||||
Axis Bank, Ltd.(b) | 721,839 | 4,784,801 | ||||||
HDFC Bank, Ltd., ADR(b) | 100,290 | 5,760,657 | ||||||
HDFC Bank, Ltd.(b) | 277,204 | 4,426,931 | ||||||
ICICI Bank, Ltd., Sponsored ADR(b) | 326,411 | 3,443,636 | ||||||
ICICI Bank, Ltd.(b) | 767,495 | 4,037,054 | ||||||
State Bank of India(b) | 250,000 | 636,952 | ||||||
26,197,811 | ||||||||
Capital Markets (0.77%) | ||||||||
Nippon Life India Asset | ||||||||
Management, Ltd.(a)(c) | 342,955 | 1,256,976 | ||||||
Consumer Finance (3.63%) | ||||||||
Bajaj Finance, Ltd. | 68,542 | 3,057,553 | ||||||
SBI Cards & Payment Services, Ltd. | 263,689 | 2,843,922 | ||||||
5,901,475 | ||||||||
Insurance (3.67%) | ||||||||
HDFC Life Insurance Co., Ltd.(a)(b)(c) | 286,356 | 2,277,751 | ||||||
ICICI Lombard General Insurance Co., Ltd.(a)(c) | 121,087 | 2,018,204 | ||||||
Max Financial Services, Ltd.(b) | 210,607 | 1,677,562 | ||||||
5,973,517 | ||||||||
Thrifts & Mortgage Finance (4.98%) | ||||||||
Aavas Financiers, Ltd.(b) | 206,113 | 3,977,588 | ||||||
Housing Development Finance Corp., Ltd. | 159,024 | 4,125,599 | ||||||
8,103,187 | ||||||||
TOTAL FINANCIALS | 47,432,966 | |||||||
Health Care (6.19%) | ||||||||
Healthcare-Services (1.16%) | ||||||||
Max Healthcare Institute, Ltd.(b) | 1,314,680 | 1,890,216 | ||||||
Pharmaceuticals (5.03%) | ||||||||
Alkem Laboratories, Ltd. | 60,977 | 2,166,553 | ||||||
Aurobindo Pharma, Ltd. | 215,274 | 2,243,453 | ||||||
Cadila Healthcare, Ltd. | 354,943 | 2,000,271 | ||||||
Cipla, Ltd. | 174,239 | 1,772,900 | ||||||
8,183,177 | ||||||||
TOTAL HEALTH CARE | 10,073,393 |
29 | October 31, 2020
ALPS | Kotak India Growth Fund
Consolidated Statement of Investments | October 31, 2020 |
Shares | Value (Note 2) | |||||||
Industrials (8.24%) | ||||||||
Air Freight & Logistics (0.61%) | ||||||||
Mahindra Logistics, Ltd.(a)(c) | 206,974 | $ | 992,451 | |||||
Airlines (0.39%) | ||||||||
InterGlobe Aviation, Ltd.(a)(b)(c) | 35,483 | 626,259 | ||||||
Building Products (1.65%) | ||||||||
Kajaria Ceramics, Ltd. | 350,000 | 2,688,701 | ||||||
Construction & Engineering (2.33%) | ||||||||
Kalpataru Power Transmission, Ltd. | 387,956 | 1,306,841 | ||||||
Larsen & Toubro, Ltd. | 198,435 | 2,486,224 | ||||||
3,793,065 | ||||||||
Electrical Equipment (1.00%) | ||||||||
V-Guard Industries, Ltd. | 707,730 | 1,619,861 | ||||||
Machinery (1.15%) | ||||||||
Cummins India, Ltd. | 140,164 | 820,244 | ||||||
Timken India, Ltd. | 71,874 | 1,044,626 | ||||||
1,864,870 | ||||||||
Trading Companies & Distributors (1.11%) | ||||||||
IndiaMart InterMesh, Ltd.(a)(c) | 27,600 | 1,808,130 | ||||||
TOTAL INDUSTRIALS | 13,393,337 | |||||||
Information Technology (15.21%) | ||||||||
IT Services (15.21%) | ||||||||
Infosys, Ltd., Sponsored ADR | 106,889 | 1,525,306 | ||||||
Infosys, Ltd. | 689,133 | 9,873,314 | ||||||
MindTree, Ltd. | 90,976 | 1,633,845 | ||||||
Tata Consultancy Services, Ltd. | 198,653 | 7,159,548 | ||||||
Tech Mahindra, Ltd. | 412,106 | 4,537,712 | ||||||
24,729,725 | ||||||||
TOTAL INFORMATION TECHNOLOGY | 24,729,725 | |||||||
Materials (9.63%) | ||||||||
Chemicals (4.58%) | ||||||||
Coromandel International, Ltd. | 85,273 | 835,458 | ||||||
Kansai Nerolac Paints, Ltd. | 327,608 | 2,273,259 | ||||||
SRF, Ltd. | 49,925 | 2,973,600 | ||||||
Supreme Industries, Ltd. | 70,094 | 1,366,421 | ||||||
7,448,738 | ||||||||
Construction Materials (5.05%) | ||||||||
JK Cement, Ltd. | 99,790 | 2,492,528 | ||||||
Ramco Cements, Ltd. | 329,877 | 3,545,861 |
Shares | Value (Note 2) | |||||||
Construction Materials (continued) | ||||||||
Shree Cement, Ltd. | 7,422 | $ | 2,172,299 | |||||
8,210,688 | ||||||||
TOTAL MATERIALS | 15,659,426 | |||||||
Real Estate (1.33%) | ||||||||
Real Estate Management & Development (1.33%) | ||||||||
Brigade Enterprises, Ltd. | 649,013 | 1,567,734 | ||||||
The Phoenix Mills, Ltd.(b) | 76,369 | 594,660 | ||||||
2,162,394 | ||||||||
TOTAL REAL ESTATE | 2,162,394 | |||||||
Utilities (0.85%) | ||||||||
Gas Utilities (0.85%) | ||||||||
Gujarat State Petronet, Ltd. | 178,127 | 464,009 | ||||||
Indraprastha Gas, Ltd. | 169,945 | 922,776 | ||||||
1,386,785 | ||||||||
TOTAL UTILITIES | 1,386,785 | |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $143,933,797) | 160,621,963 | |||||||
TOTAL INVESTMENTS (98.76%) | ||||||||
(Cost $143,933,797) | $ | 160,621,963 | ||||||
Other Assets In Excess Of Liabilities (1.24%) | 2,016,035 | |||||||
NET ASSETS (100.00%) | $ | 162,637,998 |
(a) | Securities were purchased pursuant to Regulation S under the Securities Act of 1933, which exempts securities offered and sold outside of the United States from registration. Such securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Fund's Board of Trustees. As of October 31, 2020 the aggregate market value of those securities was $12,778,790 representing 7.86% of net assets. |
(b) | Non-Income Producing Security. |
(c) | Security exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of October 31, 2020, the aggregate market value of those securities was $12,087,551, representing 7.43% of net assets. |
30 | October 31, 2020
ALPS | Kotak India Growth Fund
Consolidated Statement of Investments | October 31, 2020 |
For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets.
See Notes to Financial Statements.
31 | October 31, 2020
ALPS | Kotak India Growth Fund
Consolidated Statement of Assets and Liabilities | October 31, 2020 |
ASSETS | ||||
Investments, at value | $ | 160,621,963 | ||
Cash | 1,745,882 | |||
Foreign currency, at value (Cost $1,471,982) | 1,315,900 | |||
Receivable for investments sold | 421,393 | |||
Receivable for shares sold | 1,514 | |||
Dividends receivable | 222,434 | |||
Prepaid expenses and other assets | 12,696 | |||
Total Assets | 164,341,782 | |||
LIABILITIES | ||||
Payable for investments purchased | 738,743 | |||
Payable for shares redeemed | 31,797 | |||
Payable for foreign capital gains tax | 707,129 | |||
Investment advisory fees payable | 31,841 | |||
Administration and transfer agency fees payable | 71,407 | |||
Distribution and services fees payable | 3,227 | |||
Trustees' fees and expenses payable | 4,596 | |||
Professional fees payable | 38,997 | |||
Accrued expenses and other liabilities | 76,047 | |||
Total Liabilities | 1,703,784 | |||
NET ASSETS | $ | 162,637,998 | ||
NET ASSETS CONSIST OF | ||||
Paid-in capital | $ | 171,350,596 | ||
Total distributable earnings | (8,712,598 | ) | ||
NET ASSETS | $ | 162,637,998 | ||
INVESTMENTS, AT COST | $ | 143,933,797 | ||
PRICING OF SHARES | ||||
Investor Class: | ||||
Net Asset Value, offering and redemption price per share | $ | 12.66 | ||
Net Assets | $ | 2,704,260 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 213,684 | |||
Class A: | ||||
Net Asset Value, offering and redemption price per share | $ | 12.59 | ||
Net Assets | $ | 89,208 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 7,086 | |||
Maximum offering price per share ((NAV/0.9450), based on maximum sales charge of 5.50% of the offering price) | $ | 13.32 | ||
Class C: | ||||
Net Asset Value, offering and redemption price per share(a) | $ | 11.70 | ||
Net Assets | $ | 1,868,207 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 159,698 | |||
Class I: | ||||
Net Asset Value, offering and redemption price per share | $ | 13.05 | ||
Net Assets | $ | 21,861,476 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 1,675,503 | |||
Class II: | ||||
Net Asset Value, offering and redemption price per share | $ | 13.08 | ||
Net Assets | $ | 136,114,847 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 10,405,717 |
(a) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. For a description of a possible sales charge, please see the Fund's Prospectus. |
See Notes to Financial Statements.
32 | October 31, 2020
ALPS | Kotak India Growth Fund
Consolidated Statement of Operations | For the Year Ended October 31, 2020 |
INVESTMENT INCOME | ||||
Dividends | $ | 1,366,503 | ||
Foreign taxes withheld on dividends | (214,755 | ) | ||
Total Investment Income | 1,151,748 | |||
EXPENSES | ||||
Investment advisory fees | 802,715 | |||
Administrative fees | 240,325 | |||
Transfer agency fees | 2,604 | |||
Distribution and service fees | ||||
Investor Class | 13,857 | |||
Class A | 193 | |||
Class C | 18,728 | |||
Professional fees | 84,183 | |||
Reports to shareholders and printing fees | 15,721 | |||
State registration fees | 93,078 | |||
Insurance fees | 783 | |||
Franchise tax expenses | 4,000 | |||
Custody fees | 193,849 | |||
Trustees' fees and expenses | 10,485 | |||
Miscellaneous expenses | 38,118 | |||
Total Expenses | 1,518,639 | |||
Less fees waived/reimbursed by investment advisor (Note 8) | ||||
Investor Class | (12,699 | ) | ||
Class A | (243 | ) | ||
Class C | (5,802 | ) | ||
Class I | (60,188 | ) | ||
Class II | (411,967 | ) | ||
Net Expenses | 1,027,740 | |||
Net Investment Income | 124,008 | |||
Net realized loss on investments | (24,444,709 | ) | ||
Net realized loss on foreign currency transactions | (45,666 | ) | ||
Net Realized Loss | (24,490,375 | ) | ||
Net change in unrealized appreciation on investments | 12,797,012 | |||
Net change in unrealized depreciation on translation of assets and liabilities denominated in foreign currencies | (157,639 | ) | ||
Net change in unrealized foreign capital gains tax | (511,405 | ) | ||
Net Change in Unrealized Appreciation | 12,127,968 | |||
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS | (12,362,407 | ) | ||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (12,238,399 | ) |
See Notes to Financial Statements.
33 | October 31, 2020
ALPS | Kotak India Growth Fund
Consolidated Statements of Changes in Net Assets
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | |||||||
OPERATIONS | ||||||||
Net investment income/(loss) | $ | 124,008 | $ | (141,961 | ) | |||
Net realized gain/(loss) | (24,490,375 | ) | 340,712 | |||||
Net change in unrealized appreciation | 12,127,968 | 3,450,476 | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | (12,238,399 | ) | 3,649,227 | |||||
TOTAL DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class | (59,531 | ) | (389,048 | ) | ||||
Class A | (1,250 | ) | (573 | ) | ||||
Class C | (30,127 | ) | (144,449 | ) | ||||
Class I | (272,204 | ) | (895,310 | ) | ||||
Net Decrease in Net Assets from Distributions | (363,112 | ) | (1,429,380 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class | 14,097,079 | 1,146,850 | ||||||
Class A | 17,539 | 84,832 | ||||||
Class C | 87,547 | 76,000 | ||||||
Class I | 5,770,524 | 10,742,843 | ||||||
Class II | 175,000,000 | – | ||||||
Dividends reinvested | ||||||||
Investor Class | 46,092 | 326,938 | ||||||
Class A | 1,120 | 573 | ||||||
Class C | 29,759 | 142,713 | ||||||
Class I | 237,513 | 720,664 | ||||||
Shares redeemed, net of redemption fees | ||||||||
Investor Class | (16,813,642 | ) | (3,191,009 | ) | ||||
Class A | (21,865 | ) | – | |||||
Class C | (348,993 | ) | (253,018 | ) | ||||
Class I | (6,746,874 | ) | (4,733,511 | ) | ||||
Class II | (25,000,000 | ) | – | |||||
Net Increase in Net Assets Derived from Beneficial Interest Transactions | 146,355,799 | 5,063,875 | ||||||
Net increase in net assets | 133,754,288 | 7,283,722 | ||||||
NET ASSETS | ||||||||
Beginning of year | 28,883,710 | 21,599,988 | ||||||
End of year | $ | 162,637,998 | $ | 28,883,710 |
See Notes to Financial Statements.
34 | October 31, 2020
ALPS | Kotak India Growth Fund – Investor Class
Consolidated Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period(b) | $ | 13.02 | $ | 11.73 | $ | 14.53 | $ | 12.32 | $ | 12.57 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment loss(c) | (0.07 | )(d) | (0.10 | ) | (0.13 | ) | (0.10 | ) | (0.09 | ) | ||||||||||
Net realized and unrealized gain/(loss) | (0.93 | ) | 2.19 | (2.26 | ) | 2.45 | 1.45 | |||||||||||||
Total from investment operations | (1.00 | ) | 2.09 | (2.39 | ) | 2.35 | 1.36 | |||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net realized gains | (0.17 | ) | (0.80 | ) | (0.41 | ) | (0.14 | ) | (1.61 | ) | ||||||||||
Total distributions | (0.17 | ) | (0.80 | ) | (0.41 | ) | (0.14 | ) | (1.61 | ) | ||||||||||
REDEMPTION FEES ADDED TO PAID-IN | ||||||||||||||||||||
CAPITAL (NOTE 6) | 0.81 | 0.00 | (e) | 0.00 | (e) | 0.00 | (e) | 0.00 | (e) | |||||||||||
Net increase/(decrease) in net asset value | (0.36 | ) | 1.29 | (2.80 | ) | 2.21 | (0.25 | ) | ||||||||||||
Net asset value, end of year | $ | 12.66 | $ | 13.02 | $ | 11.73 | $ | 14.53 | $ | 12.32 | ||||||||||
TOTAL RETURN(f) | (1.48 | )% | 18.58 | % | (16.91 | )% | 19.45 | % | 13.31 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 2,704 | $ | 4,604 | $ | 5,821 | $ | 9,538 | $ | 5,772 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.72 | % | 3.27 | % | 2.80 | % | 2.95 | % | 3.83 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.40 | %(g) | 1.91 | % | 1.93 | % | 1.90 | % | 1.90 | % | ||||||||||
Ratio of net investment loss to average net assets | (0.64 | )% | (0.79 | )% | (0.91 | )% | (0.74 | )% | (0.86 | )% | ||||||||||
Portfolio turnover rate(h) | 90 | % | 56 | % | 24 | % | 30 | % | 23 | % |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Per share amounts and ratios to average net assets include income and expenses of the Kotak Mauritius Portfolio (wholly-owned subsidiary). |
(c) | Calculated using the average shares method. |
(d) | The per share amount does not correspond to activity reflected in the Statement of Operations due to class specific expenses during the period. |
(e) | Less than $0.005 or ($0.005) per share. |
(f) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(g) | Effective December 2, 2019, the net expense limitation agreement changed from 1.60% to 1.00%, excluding, among other fees and expenses, 12b-1 fees and shareholder service fees. Refer to Note 8. |
(h) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
35 | October 31, 2020
ALPS | Kotak India Growth Fund – Class A
Consolidated Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Period June 12, 2018 (Commencement of Operations) to October 31, 2018 | ||||||||||
Net asset value, beginning of period(a) | $ | 12.99 | $ | 11.72 | $ | 13.90 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment loss(b) | (0.07 | )(c) | (0.06 | ) | (0.04 | ) | ||||||
Net realized and unrealized gain/(loss) | (0.16 | ) | 2.13 | (2.14 | ) | |||||||
Total from investment operations | (0.23 | ) | 2.07 | (2.18 | ) | |||||||
DISTRIBUTIONS: | ||||||||||||
From net realized gains | (0.17 | ) | (0.80 | ) | – | |||||||
Total distributions | (0.17 | ) | (0.80 | ) | – | |||||||
Net increase/(decrease) in net asset value | (0.40 | ) | 1.27 | (2.18 | ) | |||||||
Net asset value, end of year | $ | 12.59 | $ | 12.99 | $ | 11.72 | ||||||
TOTAL RETURN(d) | (1.80 | )% | 18.41 | % | (15.68 | )% | ||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||
Net assets, end of year (000s) | $ | 89 | $ | 96 | $ | 8 | ||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.62 | % | 3.24 | % | 3.16 | %(e) | ||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.31 | %(f) | 1.94 | % | 2.00 | %(e) | ||||||
Ratio of net investment loss to average net assets | (0.56 | )% | (0.52 | )% | (0.79 | )%(e) | ||||||
Portfolio turnover rate(g) | 90 | % | 56 | % | 24 | % |
(a) | Per share amounts and ratios to average net assets include income and expenses of the Kotak Mauritius Portfolio (wholly-owned subsidiary). |
(b) | Calculated using the average shares method. |
(c) | The per share amount does not correspond to activity reflected in the Statement of Operations due to class specific expenses during the period. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(e) | Annualized. |
(f) | Effective December 2, 2019, the net expense limitation agreement changed from 1.60% to 1.00%, excluding, among other fees and expenses, 12b-1 fees and shareholder service fees. Refer to Note 8. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
36 | October 31, 2020
ALPS | Kotak India Growth Fund – Class C
Consolidated Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period(a) | $ | 12.18 | $ | 11.10 | $ | 13.87 | $ | 11.85 | $ | 12.23 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment loss(b) | (0.14 | )(c) | (0.17 | ) | (0.21 | ) | (0.18 | ) | (0.16 | ) | ||||||||||
Net realized and unrealized gain/(loss) | (0.17 | ) | 2.05 | (2.15 | ) | 2.34 | 1.39 | |||||||||||||
Total from investment operations | (0.31 | ) | 1.88 | (2.36 | ) | 2.16 | 1.23 | |||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net realized gains | (0.17 | ) | (0.80 | ) | (0.41 | ) | (0.14 | ) | (1.61 | ) | ||||||||||
Total distributions | (0.17 | ) | (0.80 | ) | (0.41 | ) | (0.14 | ) | (1.61 | ) | ||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | – | 0.00 | (d) | – | – | 0.00 | (d) | |||||||||||||
Net increase/(decrease) in net asset value | (0.48 | ) | 1.08 | (2.77 | ) | 2.02 | (0.38 | ) | ||||||||||||
Net asset value, end of year | $ | 11.70 | $ | 12.18 | $ | 11.10 | $ | 13.87 | $ | 11.85 | ||||||||||
TOTAL RETURN(e) | (2.58 | )% | 17.69 | % | (17.52 | )% | 18.60 | % | 12.51 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 1,868 | $ | 2,195 | $ | 2,024 | $ | 2,140 | $ | 1,925 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 2.37 | % | 3.97 | % | 3.51 | % | 3.69 | % | 4.54 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 2.06 | %(f) | 2.60 | % | 2.60 | % | 2.60 | % | 2.60 | % | ||||||||||
Ratio of net investment loss to average net assets | (1.29 | )% | (1.47 | )% | (1.57 | )% | (1.48 | )% | (1.56 | )% | ||||||||||
Portfolio turnover rate(g) | 90 | % | 56 | % | 24 | % | 30 | % | 23 | % |
(a) | Per share amounts and ratios to average net assets include income and expenses of the Kotak Mauritius Portfolio (wholly-owned subsidiary). |
(b) | Calculated using the average shares method. |
(c) | The per share amount does not correspond to activity reflected in the Statement of Operations due to class specific expenses during the period. |
(d) | Less than $0.005 or ($0.005) per share. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(f) | Effective December 2, 2019, the net expense limitation agreement changed from 1.60% to 1.00%, excluding, among other fees and expenses, 12b-1 fees and shareholder service fees. Refer to Note 8. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
37 | October 31, 2020
ALPS | Kotak India Growth Fund – Class I
Consolidated Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period(a) | $ | 13.43 | $ | 12.05 | $ | 14.87 | $ | 12.58 | $ | 12.76 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment loss(b) | (0.03 | )(c) | (0.05 | ) | (0.08 | ) | (0.06 | ) | (0.06 | ) | ||||||||||
Net realized and unrealized gain/(loss) | (0.18 | ) | 2.23 | (2.33 | ) | 2.48 | 1.49 | |||||||||||||
Total from investment operations | (0.21 | ) | 2.18 | (2.41 | ) | 2.42 | 1.43 | |||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net realized gains | (0.17 | ) | (0.80 | ) | (0.41 | ) | (0.14 | ) | (1.61 | ) | ||||||||||
Total distributions | (0.17 | ) | (0.80 | ) | (0.41 | ) | (0.14 | ) | (1.61 | ) | ||||||||||
REDEMPTION FEES ADDED TO PAID-IN | ||||||||||||||||||||
CAPITAL (NOTE 6) | 0.00 | (d) | – | 0.00 | (d) | 0.01 | 0.00 | (d) | ||||||||||||
Net increase/(decrease) in net asset value | (0.38 | ) | 1.38 | (2.82 | ) | 2.29 | (0.18 | ) | ||||||||||||
Net asset value, end of year | $ | 13.05 | $ | 13.43 | $ | 12.05 | $ | 14.87 | $ | 12.58 | ||||||||||
TOTAL RETURN(e) | (1.59 | )% | 18.85 | % | (16.66 | )% | 19.68 | % | 13.70 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 21,861 | $ | 21,989 | $ | 13,746 | $ | 19,891 | $ | 9,772 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.36 | % | 2.93 | % | 2.48 | % | 2.65 | % | 3.54 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.06 | %(f) | 1.60 | % | 1.60 | % | 1.60 | % | 1.60 | % | ||||||||||
Ratio of net investment loss to average net assets | (0.28 | )% | (0.39 | )% | (0.57 | )% | (0.45 | )% | (0.56 | )% | ||||||||||
Portfolio turnover rate(g) | 90 | % | 56 | % | 24 | % | 30 | % | 23 | % |
(a) | Per share amounts and ratios to average net assets include income and expenses of the Kotak Mauritius Portfolio (wholly-owned subsidiary). |
(b) | Calculated using the average shares method. |
(c) | The per share amount does not correspond to activity reflected in the Statement of Operations due to class specific expenses during the period. |
(d) | Less than $0.005 or ($0.005) per share. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(f) | Effective December 2, 2019, the net expense limitation agreement changed from 1.60% to 1.00%, excluding, among other fees and expenses, 12b-1 fees and shareholder service fees. Refer to Note 8. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
38 | October 31, 2020
ALPS | Kotak India Growth Fund – Class II
Consolidated Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Period December 19, 2019 (Commencement of Operations) to October 31, 2020 | ||||
Net asset value, beginning of period(a) | $ | 13.50 | ||
INCOME FROM INVESTMENT OPERATIONS: | ||||
Net investment income(b) | 0.02 | |||
Net realized and unrealized loss | (0.44 | ) | ||
Total from investment operations | (0.42 | ) | ||
Net (decrease) in net asset value | (0.42 | ) | ||
Net asset value, end of year | $ | 13.08 | ||
TOTAL RETURN(c) | (3.11 | )% | ||
RATIOS/SUPPLEMENTAL DATA: | ||||
Net assets, end of year (000s) | $ | 136,115 | ||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.18 | %(d) | ||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.75 | %(d) | ||
Ratio of net investment income to average net assets | 0.24 | %(d) | ||
Portfolio turnover rate(e) | 90 | % |
(a) | Per share amounts and ratios to average net assets include income and expenses of the Kotak Mauritius Portfolio (wholly-owned subsidiary). |
(b) | Calculated using the average shares method. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(d) | Annualized. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
39 | October 31, 2020
ALPS | Smith Funds
Management Commentary | October 31, 2020 (Unaudited) |
Dear Shareholder,
The ALPS | Smith Capital Investors Funds were launched on June 29, 2018, this is the third annual report for the Funds. We welcome you as a shareholder to the Funds and thank you for your trust. Our process is centered around performance, relationships, and investing excellence. Our goal is to provide shareholders with a consistent, risk-adjusted return with a keen focus on capital preservation.
Total Return
The ALPS l Smith Total Return Bond Fund Class I marked a positive return of 726 bps in the twelve-months ending October 31, 2020, while outperforming its benchmark, the Bloomberg Barclays U.S. Aggregate Index, by 107 bps. The fund is outperforming the index by 92 bps year-to-date in 2020 and 160 bps since the inception of the fund on June 29, 2018. The outperformance during the twelve-month period was attributed to our duration management in Treasuries as well an overweight in corporate credit assets during the significant snap-back from risk asset valuations beginning in June through the present. Valuations were supported by the massive fiscal and monetary stimulus announced and implemented during the second quarter. Coordinated global Central Bank stimulus and Quantitative Easing operations as well as large Fiscal stimulus, led to a rapid recovery for risk assets across the spectrum. The overall performance since inception was achieved by focusing on active portfolio positioning, duration management, security selection, and bottom-up fundamental credit analysis.
Short Duration
The ALPS l Smith Short Duration Bond Fund Class I marked a positive 612 bps in the twelve-months ending October 31, 2020, outperforming, its benchmark, the Bloomberg Barclays 1-3 -Year U.S. Government/Credit Index by 274 bps. The fund is outperforming the Index by 246 bps year-to-date in 2020 and 133 bps since the inception of the Fund on June 29, 2018. As a continuing theme, the Fund’s overallocation to corporate and securitized assets allowed the Fund to out-yield the index. Additionally, individual security selection within corporate credit was a large component of the excess returns generated in the period. The extreme rally and flattening in the front-end of the U.S. Treasury curve depressed overall yields available to investors especially once credit spreads began to recover. In this environment, the Fund maintained its’ focus on capital preservation. Despite being overweight credit on a percentage basis vs. the benchmark, the Fund maintained a longer duration profile as an offset to this risk positioning.
Macro Commentary
While the end of the first quarter and beginning of the second quarter of 2020 were plagued by COVID-19 and a global shutdown, it was followed by coordinated fiscal and monetary stimulus. By June optimism was rising around the flattening of the virus curve and cities reopening. Data was starting to improve and the combination of fiscal and monetary policy support into improving sentiment lifted risk assets. The third quarter however quickly came with setbacks, stalled or rolled-back re-openings, and an increase in COVID-19 cases. The second wave of COVID-19 hit throughout pockets of the U.S. and we now know that rolling waves will likely continue until we are able to push out a vaccine globally. As of November, post our
October 31st year-end, a vaccine is expected to be phased-in between now and mid-2021.
The optimism started to wane in July as sentiment data points stalled, high frequency data including jobless claims, restaurant bookings, and airline travel paused while the government statistics pointed to an uneven recovery. Manufacturing and Housing have been bright spots with housing seeing the benefit of changing family needs during the shutdown as well as the support of low rates. Restaurants, international travel, entertainment, education, and brick and mortar retailers, to name a few, continue to struggle. We see a square root (√) recovery, a snapback registered in June followed by a plateau due to lower output, higher deficits, a large Fed balance sheet, and more social division.
The Fed is on hold until at least 2023 and amended the longer-run goals including “assessments of the shortfalls of employment from its maximum level” as opposed to “deviations” previously. Additionally, the Fed has stated that it “seeks to achieve inflation that averages 2 percent over time” meaning that the Fed will allow inflation to run above 2 percent for “some time” after periods of inflation running below 2 percent. The Fed has been clear that rates will remain accommodative and “they are strongly committed to using all the tools” until the economy is “very far along” into the recovery. Additionally, they will continue to “adjust the pace of Treasury securities and agency mortgage-backed securities at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions, thereby supporting the flow of credit to households and businesses.”
Washington brought a high level of political theater throughout the year and heading into the election. The market turned its attention to expiring COVID-19 programs on July 31st and negative headlines over the ability to compromise on another stimulus package. Supreme Court Justice Ruth Bader Ginsburg passed away in September, opening the door for President Trump to nominate and confirm Amy Coney Barrett to the Supreme Court, creating a conservative majority. As of November, post our October 31st year-end, Biden won the election, and the “Blue Wave” outcome or divided Congress will come down to two runoff elections in Georgia on January 5, 2021. We continue to wait for a fourth stimulus package as we near the end of 2020.
Fixed Income Commentary
Flows – Money Market Fund flows peaked in May, ballooning total assets to $4.6tn. As the flight-to-safety during the early months of the pandemic played out, we knew it would only be a matter of time before we started to see this trend reverse course, particularly when holding cash pays next to nothing. Investment Grade Credit has not seen a negative week of flows since the reporting week ending April 1st, this was a trough for net flows, bottoming at -$109.5 billion. We view it as highly probable that demand for investment grade credit continues as investors’ never-ending hunt for yield continues.
High Yield flows have eased with the recent increase in volatility seen in equity markets along with record levels of supply. Looking back to the end of March, high yield has shown immense demand. The intervention by the Federal Reserve in credit markets – however small (or potentially large) – paired with the current low yielding
40 | October 31, 2020
ALPS | Smith Funds
Management Commentary | October 31, 2020 (Unaudited) |
environment, has pushed investors further out the risk curve and will likely remain a key component for high yield demand.
Equity Flows have been the real question mark throughout this ‘new normal’. The new highs reached by the Nasdaq and S&P 500 at the onset of September have been met with large outflows, perhaps the opposite outcome one would expect. There remains an enormous amount of cash on the sidelines. The current virus and economic uncertainty will likely keep investors hesitant to act quickly. While the timing of the cash deployment may be unpredictable, we think investors should be prepared for the probable tailwind it is going to provide to risk assets when reallocation occurs
Duration - With nominal interest rates continuing to decline and a large-scale recovery in credit spreads occurring, durations on most major fixed income asset classes continue to increase as issuers across segments look to take advantage of ultra-low long-term borrowing costs.
The Corporate and U.S. Treasury sleeves of the Bloomberg Barclays U.S. Aggregate Index registered a dramatic duration increase; both segments of the market currently sit near all-time highs and 30% longer than the index duration low from a decade ago. This duration increase has come in the face of declining yields and longer duration issuance for all the relevant asset classes. From a risk-adjusted return standpoint, the risk in the Aggregate Index has continued to increase as durations extend while the return component of yields has declined to generational lows.
We expect this trend to continue as investment grade corporate borrowers continue to set record low yields for long-term borrowing costs. Several investment grade borrowers issued new 30-year debt in the 2-2.5% range, with high-quality BB-rated high yield issuers tapping the market with 10-year debt near or below 3%. We believe that active management rather than static duration targets will be a key avenue for alpha generation and preservation of capital going forward.
Credit - We believe that the credit markets are taking a longer-term view and looking past the market volatility. The recovery in spreads has been significant, even considering the economic uncertainty. Some of the tightening has been driven by the hunt for yield in the marketplace and some are due to the underlying fundamental improvement and optionality within corporate capital structures.
Many companies have raised liquidity, adjusted their capital structures, cost structures, and evolved their underlying businesses to adapt. We see many examples of companies with greater operating and financial leverage than before the crisis. This could serve them well as the global economy improves. With improved profitability, along with the significant excess liquidity on their balance sheets, we could see a revival of shareholder-friendly activity: share repo, increased dividends, merger and acquisition activity, and our favorite, debt reduction.
One caveat we raise – higher leverage levels, a result of higher debt balances and depressed operating earnings, make the credit markets more vulnerable to an exogenous shock to the system. While somewhat obvious, any shock could trigger greater volatility in credit. In the near term though, we believe there are many
companies with strong liquidity profiles that would fare better, while others could be subject to downgrades and difficult capital structure decisions. We are very aware of the inherent risks in a highly levered world of credit.
For many of the highly levered companies, any shock to the system would dramatically reduce their resiliency and would result in much greater volatility. We see some companies that have pushed their leverage to levels that are not sustainable and others that have used any possible securitized lending to raise liquidity. Going forward, we believe it will be imperative to avoid the companies who are in this untenable leverage position, especially if concerns around the sustainability of economic growth arise.
Not all credit is created equal in this environment. The potential for increases in defaults, downgrades, and questionable recovery values - which have been much lower than historical levels – in our view are risk factors to keep front and center over the next 12 months.
Interest Rates - We continue to believe interest rate risk will be a dominant risk factor for fixed income investors over the next 12-24 months but think the timeline for the risk associated with significant drawdown has been pushed further down the road. In the near term, the range-bound, lower-for-longer theme, will likely be the path for rates. This view would further be reinforced if we continue to see flows move from money markets back into the fixed income markets – a high-confidence outcome in our opinion.
From a fundamental standpoint, flatter yield curves are usually the result of slower growth expectations. We will be paying very close attention to the curve in the near term. We are also watching financials closely as flatter curves and weak financials have proven to be warning signs for future economic growth.
While on the topic of financials, it would be prudent to remind investors of the long duration position in the fixed income marketplace. Large swings in interest rates result in significant swings in dollar prices and thus performance. We are watching for second and third derivative effects due to large changes in interest rates and changes in the shape of the curve. We believe this is an underappreciated risk in the marketplace.
In the vein of duration, debt and deficits continue to grow, increasing funding needs. The ability of the market to absorb the massive amounts of supply will be front and center going forward. The market can only look past a rising deficit for so long, but once it comes back into focus, rates can mark a quick and disorderly selloff. We expect rates to hold within a range in the short-term but to break out to higher yields with growth and inflation expectations moving higher due to the anticipation of a vaccine in 2021.
As we look ahead to the end of 2020 after what we believe has been an unparalleled year on many levels, we remind ourselves that the landscape will continue to change but our fundamental process remains the same. Within the security selection component of our process, we will continue to look for companies that are fundamentally improving and committed to a strong capital structure. We will also be very watchful for defaults and downgrades – we are expecting both to accelerate over the next 6-12 months.
41 | October 31, 2020
ALPS | Smith Funds
Management Commentary | October 31, 2020 (Unaudited) |
We believe valuations in the fixed income market are being driven not only by flows but via the Federal Reserve’s policy actions. It is our opinion that the Treasury market has new risks given the low outright yields, increasing duration, the economic environment, and massive debt and deficits. Credit markets have largely recovered from the COVID-19 crisis levels and, like U.S. Treasuries, have low yields and long durations. Securitized markets offer low yields and duration extension risk. And finally, we will push into year-end having to deal with another round of the COVID-19 virus and economic shutdowns into an economy that is showing signs of the ‘plateau stage’ of a square root recovery (√). This may bring additional market volatility as well as further societal needs and changes. It promises to be an interesting period.
The ALPS l Smith Balanced Opportunity Fund (the “Balanced Fund”) and ALPS l Smith Credit Opportunities Fund (the “Credit Opportunities Fund”) launched on September 15, 2020. Due to the short period since the inception of the Balanced Fund and the Credit Opportunities Fund through the fiscal year ended October 31, 2020, performance information for each Fund will be included in the semi-annual report for the six-month period ending April 30, 2021.
Portfolio Positioning
In the short term, we remain nimble regarding the Funds’ positioning in U.S. Treasuries as very low absolute yield levels, uncertainty around the velocity of the economic recovery, the potential for additional fiscal stimulus, concerns around future inflation, and the wildcard of the second and third derivative impacts of the Federal Reserve’s new policies and facilities on the market are leading to unprecedented levels of volatility. We are also focused on the shape of the curve as the front-end is extremely flat but concerns about inflation due to Government Debt levels may be gathering and may eventually impact longer duration Treasuries. We remain proactive in managing this longer duration U.S. Treasury position.
We have made significant changes to the credit portfolio this year. Coming into 2020 we were optimistic about the potential for above trend economic growth and further corporate management focus on reducing leverage. However, as the spread and impact of COVID-19 around the globe expanded we were active in reducing our corporate exposure and increasing our U.S. Treasury weighting. The massive Fiscal and Monetary policy support combined with the dramatic revaluation in risk assets allowed us to shift our focus to increasing the ALPS l Smith Short Duration and ALPS | Smith Total Return Fund's credit exposure. This was done via more economically sensitive credit - as progress was made globally from both vaccine development and fiscal support, buoying risk tolerance for both consumers and investors. We continue to like credit despite the massive tightening in the spread as it remains one of the few asset classes within Fixed Income providing yield. The increase in our weighting to corporate credit was focused on specific names as we believe there is potential for continued economic volatility broadly. We target investing in companies with management teams who focus on managing through downside scenarios, giving themselves optionality as well as downside protection. We are encouraged by the increase in equity raises that have recently come to market as an increased focus on deleveraging is positive for both debt and equity holders. This is a hallmark of stories we are attracted to in the current environment. During the fiscal year ended October 31, 2020,
we have started to reduce exposure given the substantial rally in risk asset spreads, but this has been a very disciplined process centered on our risk-adjusted return and capital preservation process while balancing the overall need for yield across all developed markets.
Short duration high yield continues to be a focus. This area of the market has much less forecasting error embedded in its analysis as it is a liquidity analysis evaluation over a very short period vs. longer-term projections on industries, commodity prices, and competitive dynamics facing a sector/company. With the flat U.S. Treasury curve 5-yrs and in, we are not being compensated to extend out the curve and therefore these types of assets result in extremely attractive risk-adjusted return profiles. This has further tailwinds from the pegging of the front-end of the curve on the interest rate side by the Fed Funds rate as well as support from the Fed’s corporate QE program focused on the 5-yr and in area of the yield curve.
Within the securitized allocation in the Fund’s, we continue to allocate money to agency-mortgage-backed collateralized mortgage obligations (CMOs) and agency guaranteed commercial mortgage-backed securities (CMBS). We find that select CMOs and Agency CMBS provide better convexity, exhibit less change in duration given changes in interest rates and prepayment speeds, and provide higher option-adjusted spreads and yield. Additionally, these securities have much less credit risk than non-guaranteed assets which we believe is a very important risk factor given the potential societal and structural changes in a post-COVID-19 world. In this current climate mortgage prepayment and default assumptions are very uncertain, thus we focus on selecting securities that perform well through a wide band of underlying assumptions rather than a specific directional view.
In a world of heightened risk and uncertainty, we continue to acknowledge what can go wrong, but also how far the economy has come with the support of both fiscal and monetary policy. The repricing and recovery in markets this year led to a once in a lifetime opportunity to generate significant returns. We believe there are still opportunities in the fixed income space via fundamentally improving credit stories and actively managing duration and interest rate risks. Given how far markets have improved, and the expected volatility on the horizon, we have reoriented the portfolios to provide more dry powder for future opportunities.
We continue to go back to our fundamentals, relying on our investment process which starts with bottom-up analysis. Our two core tenets: risk-adjusted returns and preservation of capital have taken on an even more important meaning during this time.
We thank you for the confidence you have placed with us and we look forward to continuing to serve you and to meet your fixed income needs.
Sincerely,
R. Gibson Smith | Eric C. Bernum, CFA |
Portfolio Manager | Portfolio Manager |
42 | October 31, 2020
ALPS | Smith Funds
Management Commentary | October 31, 2020 (Unaudited) |
Past performance is no guarantee of future results. Dividends are not guaranteed and are subject to change or elimination. Investments in international and emerging markets securities include exposure to risks such as currency fluctuations, foreign taxes and regulations, and the potential for illiquid markets and political instability.
The views of the author and information discussed in this commentary are as of the date of publication, are subject to change, and may not reflect the writer's current views. The views expressed are those of the author only, and represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the fund(s) or any securities or any sectors mentioned in this letter. The subject matter contained in this letter has been derived from several sources believed to be reliable and accurate at the time of compilation. Neither ALPS Advisors, Inc., Smith Capital Investors, LLC, nor the Funds accepts any liability for losses either direct or consequential caused by the use of this information.
Indices do not reflect deductions for fees, expenses, or taxes.
An investor may not invest directly in an index.
Diversification cannot guarantee gain or prevent losses.
Gibson Smith is a registered representative of ALPS Distributors, Inc.
Eric Bernum is a registered representative of ALPS Distributors, Inc.
ALPS Portfolio Solutions Distributor, Inc., ALPS Distributors, Inc.
and ALPS Advisors Inc. are affiliated.
43 | October 31, 2020
ALPS | Smith Short Duration Bond Fund
Performance Update | October 31, 2020 (Unaudited) |
Performance of $100,000 Initial Investment (as of October 31, 2020)
Comparison of change in value of a $100,000 investment
The chart above represents historical performance of a hypothetical investment of $100,000 in the Fund since inception. Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns (as of October 31, 2020)
1 Year | Since Inception^ | Total Expense Ratio | What You Pay* | |
Class I | 6.12% | 5.05% | 0.82% | 0.49% |
Investor (NAV) | 5.85% | 4.75% | 1.13% | 0.79% |
Class A (NAV) | 5.84% | 4.72% | 1.14% | 0.79% |
Class A (MOP) | -0.02% | 2.22% | ||
Class C (NAV) | 5.10% | 4.00% | 1.83% | 1.49% |
Class C (CDSC) | 4.10% | 4.00% | ||
Bloomberg Barclays U.S. Government/Credit Bond Index¹ | 7.08% | 7.95% | ||
Bloomberg Barclays 1-3 Year Government/Credit Bond Index² | 3.38% | 3.72% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Effective September 1, 2020 the Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 2.25%. Prior to September 1, 2020 the sales charge was 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $500 thousand or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million.
Performance less than 1 year is cumulative.
44 | October 31, 2020
ALPS | Smith Short Duration Bond Fund
Performance Update | October 31, 2020 (Unaudited) |
1 | The Bloomberg Barclays US Government/Credit Index: composed of all publicly issued, fixed-rate, nonconvertible, investment-grade corporate debt. Issues are rated at least Baa by Moody's Investors Service or BBB by Standard & Poor's, if unrated by Moody's. Collateralized Mortgage Obligations (CMOs) are not included. Total return comprises price appreciation/depreciation and income as a percentage of the original investment. The index is not actively managed and does not reflect any deductions for fees, expenses or taxes. An investor may not invest directly in an index. |
2 | The Bloomberg Barclays 1-3 Yr US Gov/Credit TR Index Unhedged: an index that includes all medium and larger issues of U.S. government, investment-grade corporate, and investment-grade international dollar-denominated bonds that have maturities of between 1 and 3 years and are publicly issued. The index is not actively managed and does not reflect any deductions for fees, expenses or taxes. An investor may not invest directly in an index. |
^ | Fund Inception date of June 29, 2018. |
* | What You Pay reflects the Advisor’s decision to contractually limit expenses through February 28, 2021. Please see the prospectus dated February 28, 2020 for additional information. |
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors, and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Asset Type Allocation (as a % of Net Assets) †
Corporate | 69.59% |
Government | 23.97% |
Securitized | 4.17% |
Municipal | 0.07% |
Cash, Cash Equivalents, & Other Net Assets | 2.20% |
Total | 100.00% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents approximate values only. |
Top Ten Holdings (as a % of Net Assets) †
U.S. Treasury Note 0.125% 09/30/2022 | 7.83% |
U.S. Treasury Note 0.125% 04/30/2022 | 2.81% |
U.S. Treasury Note 0.125% 05/31/2022 | 2.51% |
U.S. Treasury Note 0.125% 08/31/2022 | 2.20% |
U.S. Treasury Note 0.25% 09/30/2025 | 1.96% |
U.S. Treasury Note 0.125% 09/15/2023 | 1.75% |
U.S. Treasury Note 0.375% 03/31/2022 | 1.68% |
Nestle Holdings, Inc. 0.375% 01/15/2024 | 1.64% |
JPMorgan Chase & Co. 1D US SOFR + 0.60% 09/16/2024 | 1.38% |
Valero Energy Corp. 3M US L + 1.15% 09/15/2023 | 1.24% |
Top Ten Holdings | 25.00% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents approximate values only. |
Industry Sector Allocation (as a % of Net Assets)
Sovereign | 24.04% |
Financial Services | 10.38% |
Diversified Banks | 7.11% |
Banks | 6.58% |
Automobiles Manufacturing | 5.79% |
Pharmaceuticals | 4.22% |
Mortgage Securities | 4.17% |
Chemicals | 3.30% |
Refining & Marketing | 2.92% |
Pipeline | 2.34% |
Food & Beverage | 2.29% |
Consumer Finance | 2.07% |
Transportation & Logistics | 1.85% |
Health Care Facilities & Services | 1.70% |
Cable & Satellite | 1.67% |
Utilities | 1.58% |
Electrical Equipment Manufacturing | 1.44% |
Software & Services | 1.26% |
Wireless Telecommunications Services | 1.23% |
Semiconductors | 1.22% |
Biotechnology | 1.16% |
Life Insurance | 1.10% |
Aerospace & Defense | 1.05% |
Other Industries (each less than 1%) | 7.33%* |
Cash Equivalents & Other Net Assets | 2.20% |
Total | 100.00% |
* | See Statement of Investments for detailed breakout of other industries. |
45 | October 31, 2020
ALPS | Smith Total Return Bond Fund
Performance Update | October 31, 2020 (Unaudited) |
Performance of $100,000 Initial Investment (as of October 31, 2020)
Comparison of change in value of a $100,000 investment
The chart above represents historical performance of a hypothetical investment of $100,000 in the Fund since inception. Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns (as of October 31, 2020)
1 Year | Since Inception^ | Total Expense Ratio | What You Pay* | |
Class I | 7.26% | 8.73% | 0.76% | 0.67% |
Investor (NAV) | 6.95% | 8.39% | 1.08% | 0.97% |
Class A (NAV) | 6.96% | 8.42% | 1.07% | 0.97% |
Class A (MOP) | 1.07% | 5.83% | ||
Class C (NAV) | 6.23% | 7.65% | 1.79% | 1.67% |
Class C (CDSC) | 5.23% | 7.65% | ||
Bloomberg Barclays US Aggregate Bond Index1 | 6.19% | 7.13% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Effective September 1, 2020 the Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 2.25%. Prior to September 1, 2020 the sales charge was 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $500 thousand or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million.
Performance less than 1 year is cumulative.
46 | October 31, 2020
ALPS | Smith Total Return Bond Fund
Performance Update | October 31, 2020 (Unaudited) |
1 | The Bloomberg Barclays U.S. Aggregate Bond Index provides a measure of the performance of the U.S. dollar denominated investment grade bond market, which includes investment grade government bonds, investment grade corporate bonds, mortgage pass through securities, commercial mortgage backed securities and asset backed securities that are publicly for sale in the United States. The index is not actively managed and does not reflect any deductions for fees, expenses or taxes. An investor may not invest directly in an index. |
^ | Fund Inception date of June 29, 2018. |
* | What You Pay reflects the Advisor’s decision to contractually limit expenses through February 28, 2021. Please see the prospectus dated February 28, 2020 for additional information. |
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors, and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Asset Type Allocation (as a % of Net Assets) †
Corporate | 65.45% |
Securitized | 16.50% |
Government | 15.27% |
Preferred Stock | 0.26% |
Municipal | 0.05% |
Cash, Cash Equivalents, & Other Net Assets | 2.47% |
Total | 100.00% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents approximate values only. |
Top Ten Holdings (as a % of Net Assets) †
U.S. Treasury Note 0.625% 08/15/2030 | 3.23% |
U.S. Treasury Note 0.25% 08/31/2025 | 3.07% |
U.S. Treasury Bond 1.375% 08/15/2050 | 2.99% |
Fannie Mae-Aces 3.447% 02/25/2043 | 1.60% |
LPL Holdings, Inc. 5.75% 09/15/2025 | 1.38% |
U.S. Treasury Note 0.25% 05/31/2025 | 1.31% |
U.S. Treasury Bond 1.25% 05/15/2050 | 1.25% |
Microchip Technology, Inc. 3.922% 06/01/2021 | 1.03% |
U.S. Treasury Note 0.25% 09/30/2025 | 0.98% |
U.S. Treasury Bond 1.125% 08/15/2040 | 0.98% |
Top Ten Holdings | 17.82% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents approximate values only. |
Industry Sector Allocation (as a % of Net Assets)
Mortgage Securities | 16.50% |
Sovereign | 15.32% |
Financial Services | 7.90% |
Banks | 7.72% |
Diversified Banks | 4.46% |
Pharmaceuticals | 3.78% |
Consumer Finance | 3.39% |
Automobiles Manufacturing | 3.35% |
Pipeline | 3.06% |
Software & Services | 2.65% |
Food & Beverage | 2.19% |
Wireless Telecommunications Services | 2.18% |
Cable & Satellite | 1.96% |
Aerospace & Defense | 1.76% |
Health Care Facilities & Services | 1.57% |
Semiconductors | 1.56% |
Commercial Finance | 1.34% |
Refining & Marketing | 1.34% |
Utilities | 1.26% |
Electrical Equipment Manufacturing | 1.17% |
Airlines | 1.14% |
Other Industries (each less than 1%) | 11.93%* |
Cash Equivalents & Other Net Assets | 2.47% |
Total | 100.00% |
* | See Statement of Investments for detailed breakout of other industries. |
47 | October 31, 2020
ALPS | Smith Credit Opportunities Fund
Performance Update | October 31, 2020 (Unaudited) |
Performance of $100,000 Initial Investment (as of October 31, 2020)
Comparison of change in value of a $100,000 investment
The chart above represents historical performance of a hypothetical investment of $100,000 in the Fund since inception. Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns (as of October 31, 2020)
1 Month+ | Since Inception^ | Total Expense Ratio | What You Pay* | |
Class I | 0.45% | -0.15% | 1.02% | 0.90% |
Investor (NAV) | 0.37% | -0.23% | 1.32% | 1.20% |
Class A (NAV) | 0.38% | -0.22% | 1.32% | 1.20% |
Class A (MOP) | -1.89% | -2.47% | ||
Class C (NAV) | 0.29% | -0.31% | 2.02% | 1.90% |
Class C (CDSC) | -0.71% | -1.31% | ||
50% Bloomberg Barclays US Aggregate Index / 50% Bloomberg Barclays US Corporate High Yield Index1,2 | 0.03% | -0.46% | ||
Bloomberg Barclays US Aggregate Bond Index1 | -0.45% | -0.65% | ||
Bloomberg Barclays US Corporate High Yield Bond Index2 | 0.51% | -0.28% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 2.25%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $500 thousand or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million.
Performance less than 1 year is cumulative.
48 | October 31, 2020
ALPS | Smith Credit Opportunities Fund
Performance Update | October 31, 2020 (Unaudited) |
1 | Bloomberg Barclays US Aggregate Bond Index: provides a measure of the performance of the U.S. dollar denominated investment grade bond market, which includes investment grade government bonds, investment grade corporate bonds, mortgage pass through securities, commercial mortgage backed securities and asset backed securities that are publicly for sale in the United States. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
2 | Bloomberg Barclays US Corporate High Yield Index measures the USD-denominated, high yield, fixed-rate corporate bond market. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
^ | Fund Inception date of September 15, 2020. The Fund has limited operating history. |
* | What You Pay reflects the Advisor’s decision to contractually limit expenses through February 28, 2022. Please see the prospectus dated September 14, 2020 for additional information. |
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors, and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Asset Type Allocation (as a % of Net Assets) †
Corporate | 86.48% |
Government | 9.95% |
Preferred Stock | 1.69% |
Cash, Cash Equivalents, & Other Net Assets | 1.88% |
Total | 100.00% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents approximate values only. |
Top Ten Holdings (as a % of Net Assets) †
U.S. Treasury Note 0.125% 09/15/2023 | 3.40% |
MGM Resorts International | 2.34% |
Boyd Gaming Corp. | 2.31% |
OneMain Finance Corp. | 2.02% |
Nordstrom, Inc. | 2.01% |
Gray Television, Inc. | 1.99% |
LPL Holdings, Inc. | 1.98% |
U.S. Treasury Note 0.125% 09/30/2022 | 1.92% |
Nexstar Broadcasting, Inc. | 1.85% |
American Express Co. | 1.75% |
Top Ten Holdings | 21.57% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents approximate values only. |
Industry Sector Allocation (as a % of Net Assets)
Sovereign | 9.95% |
Consumer Finance | 8.35% |
Pipeline | 7.86% |
Financial Services | 6.95% |
Banks | 5.08% |
Casinos & Gaming | 5.03% |
Pharmaceuticals | 5.01% |
Automobiles Manufacturing | 4.75% |
Publishing & Broadcasting | 4.62% |
Commercial Finance | 2.94% |
Airlines | 2.93% |
Food & Beverage | 2.87% |
Health Care Facilities & Services | 2.80% |
Software & Services | 2.68% |
Real Estate | 2.22% |
Department Stores | 2.01% |
Wireless Telecommunications Services | 1.96% |
Cable & Satellite | 1.78% |
Financials | 1.69% |
Medical Equipment & Devices Manufacturing | 1.52% |
Retail - Consumer Staples | 1.49% |
Aerospace & Defense | 1.46% |
Restaurants | 1.31% |
Wireline Telecommunications Services | 1.24% |
Homebuilders | 1.21% |
Chemicals | 1.17% |
Advertising & Marketing | 1.13% |
Supermarkets & Pharmacies | 1.02% |
Other Industries (each less than 1%) | 5.09%* |
Cash Equivalents & Other Net Assets | 1.88% |
Total | 100.00% |
* | See Statement of Investments for detailed breakout of other industries. |
.
49 | October 31, 2020
ALPS | Smith Balanced Opportunity Fund
Performance Update | October 31, 2020 (Unaudited) |
Performance of $100,000 Initial Investment (as of October 31, 2020)
Comparison of change in value of a $100,000 investment
The chart above represents historical performance of a hypothetical investment of $100,000 in the Fund since inception. Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns (as of October 31, 2020)
1 Month | Since Inception^ | Total Expense Ratio | What You Pay* | |
Class I | -0.65% | -1.15% | 1.03% | 0.85% |
Investor (NAV) | -0.68% | -1.18% | 1.33% | 1.15% |
Class A (NAV) | -0.66% | -1.16% | 1.33% | 1.15% |
Class A (MOP) | -3.85% | -4.41% | ||
Class C (NAV) | -0.80% | -1.30%+ | 2.03% | 1.85% |
Class C (CDSC) | -1.80% | -2.29% | ||
55% Russell 1000 Index TR / 45% Bloomberg Barclays US Aggregate Bond Index1,2 | -1.53% | -2.11% | ||
Russell 1000® Index TR1 | -2.41% | -3.30% | ||
Bloomberg Barclays US Aggregate Bond Index2 | -0.45% | -0.65% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 3.25%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $500 thousand or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million.
Performance less than 1 year is cumulative.
50 | October 31, 2020
ALPS | Smith Balanced Opportunity Fund
Performance Update | October 31, 2020 (Unaudited) |
1 | Russell 1000 Index is a stock market index that tracks the highest-ranking 1,000 stocks in the Russell 3000 Index, which represent about 90% of the total market capitalization of the index. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
2 | Bloomberg Barclays US Aggregate Bond Index: provides a measure of the performance of the U.S. dollar denominated investment grade bond market, which includes investment grade government bonds, investment grade corporate bonds, mortgage pass through securities, commercial mortgage backed securities and asset backed securities that are publicly for sale in the United States. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
^ | Fund Inception date of September 15, 2020. The Fund has limited operating history. |
* | What You Pay reflects the Advisor’s decision to contractually limit expenses through February 28, 2022. Please see the prospectus dated September 14, 2020 for additional information. |
+ | Excludes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value and total return for shareholder transactions reported to the market may differ from the net asset value for financial reporting purposes. |
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors, and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Asset Type Allocation (as a % of Net Assets) †
Common Stock | 51.16% |
Government | 16.40% |
Corporate | 15.87% |
Securitized | 10.48% |
Cash, Cash Equivalents, & Other Net Assets | 6.09% |
Total | 100.00% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents approximate values only. |
Top Ten Holdings (as a % of Net Assets) †
U.S. Treasury Note 0.125% 08/31/2022 | 3.65% |
U.S. Treasury Note 0.125% 09/15/2023 | 2.77% |
U.S. Treasury Note 0.25% 08/31/2025 | 2.49% |
U.S. Treasury Note 0.625% 08/15/2030 | 2.37% |
Amazon.com, Inc. | 2.30% |
U.S. Treasury Note 0.125% 09/30/2022 | 2.07% |
Microsoft Corp. | 2.03% |
JPMorgan Chase & Co. | 1.56% |
U.S. Treasury Bond 1.375% 08/15/2050 | 1.45% |
Top Ten Holdings | 20.69% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents approximate values only |
Industry Sector Allocation (as a % of Net Assets)
Sovereign | 16.40% |
Mortgage Securities | 10.48% |
Health Care | 7.51% |
Software & Tech Services | 7.49% |
Tech Hardware & Semiconductors | 4.89% |
Industrial Products | 4.25% |
Financial Services | 3.79% |
Media | 2.99% |
Retail & Whsle - Discretionary | 2.87% |
Consumer Staple Products | 2.82% |
Retail & Wholesale - Staples | 2.77% |
Consumer Discretionary Products | 1.98% |
Pharmaceuticals | 1.75% |
Insurance | 1.68% |
Materials | 1.66% |
Consumer Discretionary Services | 1.65% |
Banking | 1.56% |
Industrial Services | 1.33% |
Diversified Banks | 1.27% |
Utilities | 1.22% |
Other Industries (each less than 1%) | 13.55%* |
Cash Equivalents & Other Net Assets | 6.09% |
Total | 100.00% |
* | See Statement of Investments for detailed breakout of other industries. |
51 | October 31, 2020
ALPS | Smith Short Duration Bond Fund
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
COLLATERALIZED MORTGAGE OBLIGATIONS (1.64%) | ||||||||
Fannie Mae | ||||||||
Series 1992-180, Class F, | ||||||||
1M US L + 1.15%, 10/25/2022(a) | $ | 9,775 | $ | 9,838 | ||||
Series 1992-49, Class L, | ||||||||
7.000%, 04/25/2022 | 25,405 | 26,140 | ||||||
Series 1992-52, Class FD, | ||||||||
1M US L + 0.02%, 09/25/2022(a) | 7,345 | 7,301 | ||||||
Series 1992-62, Class FA, | ||||||||
1M US L + 0.90%, 10/25/2022(a) | 40,075 | 39,973 | ||||||
Series 1992-73, Class FC, | ||||||||
1M US L + 0.75%, 05/25/2022(a) | 1,587 | 1,584 | ||||||
Series 1992-8, Class FA, | ||||||||
1M US L + 0.83%, 01/25/2022(a) | 4,120 | 4,117 | ||||||
Series 1992-89, Class FB, | ||||||||
1M US L + 0.50%, 06/25/2022(a) | 1,033 | 1,029 | ||||||
Series 1993-184, Class M, | ||||||||
–%, 09/25/2023(b) | 14,841 | 14,621 | ||||||
Series 1993-189, Class FB, | ||||||||
10Y US TI + -0.65%, 10/25/2023(a) | 7,803 | 7,677 | ||||||
Series 1993-230, Class FA, | ||||||||
1M US L + 0.60%, 12/25/2023(a) | 41,898 | 41,700 | ||||||
Series 1993-255, Class E, | ||||||||
7.100%, 12/25/2023 | 61,834 | 66,177 | ||||||
Series 1993-27, Class FC, | ||||||||
1M US L + 0.90%, 08/25/2023(a) | 4,223 | 4,218 | ||||||
Series 1993-31, Class PN, | ||||||||
7.000%, 09/25/2023 | 122,477 | 129,529 | ||||||
Series 1993-97, Class FA, | ||||||||
1M US L + 1.25%, 05/25/2023(a) | 8,536 | 8,478 | ||||||
Series 1994-18, Class FA, | ||||||||
1M US L + 0.60%, 02/25/2024(a) | 16,646 | 16,699 | ||||||
Series 1994-22, Class F, | ||||||||
1M US L + 1.20%, 01/25/2024(a) | 101,019 | 101,992 | ||||||
Series 1994-3, Class FB, | ||||||||
1M US L + 0.65%, 01/25/2024(a) | 38,608 | 38,751 | ||||||
Series 1994-3, Class FA, | ||||||||
1M US L + 0.65%, 03/25/2024(a) | 7,448 | 7,472 | ||||||
Series 1994-61, Class E, | ||||||||
7.500%, 04/25/2024 | 51,223 | 54,830 | ||||||
Series 1994-75, Class K, | ||||||||
7.000%, 04/25/2024 | 30,913 | 33,364 | ||||||
Series 1994-77, Class FB, | ||||||||
1M US L + 1.50%, 04/25/2024(a) | 73,536 | 74,340 | ||||||
Series 1997-12, Class FA, | ||||||||
1M US L + 1.00%, 04/18/2027(a) | 36,782 | 37,296 | ||||||
Series 1997-49, Class F, | ||||||||
1M US L + 0.50%, 06/17/2027(a) | 47,975 | 48,118 | ||||||
Series 2003-39, Class PG, | ||||||||
5.500%, 05/25/2023 | 47,001 | 48,819 | ||||||
Series 2003-49, Class YC, | ||||||||
4.000%, 06/25/2023 | 26,898 | 27,596 | ||||||
Series 2004-53, Class NC, | ||||||||
5.500%, 07/25/2024 | 19,988 | 20,915 |
Principal Amount | Value (Note 2) | |||||||
Series 2004-95, Class AK, | ||||||||
5.500%, 01/25/2025 | $ | 27,348 | $ | 29,071 | ||||
Series 2005-121, Class DY, | ||||||||
5.500%, 01/25/2026 | 27,426 | 29,281 | ||||||
Series 2006-22, Class CE, | ||||||||
4.500%, 08/25/2023 | 15,264 | 15,815 | ||||||
Series 2009-90, Class BD, | ||||||||
3.500%, 11/25/2024 | 253 | 252 | ||||||
Series 2010-112, Class GA, | ||||||||
2.000%, 06/25/2021 | 21 | 21 | ||||||
Series 2010-145, Class MA, | ||||||||
2.000%, 12/25/2020 | 76 | 76 | ||||||
Series 2011-104, Class DA, | ||||||||
2.000%, 10/25/2021 | 6,311 | 6,316 | ||||||
Series 2011-141, Class CA, | ||||||||
2.000%, 12/25/2025 | 54,624 | 55,108 | ||||||
Series 2011-40, Class KA, | ||||||||
3.500%, 03/25/2026 | 92,154 | 98,564 | ||||||
Series 2011-44, Class EB, | ||||||||
3.000%, 05/25/2026 | 49,609 | 51,636 | ||||||
Series 2011-5, Class PA, | ||||||||
4.000%, 10/25/2025 | 5,013 | 5,024 | ||||||
Series 2011-61, Class B, | ||||||||
3.000%, 07/25/2026 | 80,335 | 83,748 | ||||||
Series 2011-66, Class QE, | ||||||||
2.000%, 07/25/2021 | 234 | 235 | ||||||
Series 2011-80, Class KB, | ||||||||
3.500%, 08/25/2026 | 96,662 | 102,086 | ||||||
Series 2012-1, Class GB, | ||||||||
2.000%, 02/25/2022 | 9,419 | 9,462 | ||||||
1,359,269 | ||||||||
Freddie Mac | ||||||||
Series 1991-1069, Class J, | ||||||||
6.950%, 04/15/2021 | 2,127 | 2,147 | ||||||
Series 1991-1155, Class KZ, | ||||||||
7.000%, 10/15/2021 | 147 | 147 | ||||||
Series 1992-1242, Class C, | ||||||||
1M US L + 0.55%, 04/15/2022 (a) | 4,117 | 4,106 | ||||||
Series 1993-1487, Class O, | ||||||||
1M US L + 0.75%, 03/15/2023 (a) | 14,140 | 14,193 | ||||||
Series 1993-1534, Class J, | ||||||||
1M US L + 0.90%, 06/15/2023 (a) | 21,555 | 21,675 | ||||||
Series 1993-1560, Class Z, | ||||||||
7.000%, 08/15/2023 | 19,104 | 20,060 | ||||||
Series 1993-1567, Class A, | ||||||||
1M US L + 0.40%, 08/15/2023 (a) | 67,599 | 67,533 | ||||||
Series 1993-1584, Class L, | ||||||||
6.500%, 09/15/2023 | 33,424 | 35,543 | ||||||
Series 1993-1602, Class PJ, | ||||||||
6.500%, 10/15/2023 | 39,642 | 41,788 | ||||||
Series 1993-1611, Class Z, | ||||||||
6.500%, 11/15/2023 | 19,085 | 20,386 | ||||||
Series 1993-1628, Class LZ, | ||||||||
6.500%, 12/15/2023 | 11,377 | 12,096 | ||||||
Series 1993-1630, Class PK, | ||||||||
6.000%, 11/15/2023 | 22,557 | 23,898 |
52 | October 31, 2020
ALPS | Smith Short Duration Bond Fund
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 1993-1632, Class FB, | ||||||||
1M US L + 1.20%, 11/15/2023(a) | $ | 26,299 | $ | 26,532 | ||||
Series 1993-1636, Class F, | ||||||||
1M US L + 0.65%, 11/15/2023(a) | 23,607 | 23,686 | ||||||
Series 1993-21, Class F, | ||||||||
1M US L + 0.50%, 10/25/2023(a) | 26,421 | 26,464 | ||||||
Series 1993-24, Class FJ, | ||||||||
1M US L + 0.50%, 11/25/2023(a) | 119,044 | 119,238 | ||||||
Series 1994-1673, Class FB, | ||||||||
10Y US TI + -0.50%, 02/15/2024(a) | 9,730 | 9,647 | ||||||
Series 1994-1699, Class FB, | ||||||||
1M US L + 1.00%, 03/15/2024(a) | 14,859 | 14,866 | ||||||
Series 1994-1707, Class F, | ||||||||
1M US L + 0.70%, 03/15/2024(a) | 22,089 | 22,184 | ||||||
Series 1994-1744, Class FD, | ||||||||
1M US L + 1.98%, 08/15/2024(a) | 54,511 | 55,793 | ||||||
Series 1994-32, Class PN, | ||||||||
7.500%, 04/25/2024 | 181,054 | 194,005 | ||||||
Series 1994-43, Class PH, | ||||||||
6.500%, 10/17/2024 | 32,347 | 34,426 | ||||||
Series 1996-1885, Class FA, | ||||||||
1M US L + 0.45%, 09/15/2026(a) | 10,940 | 10,959 | ||||||
Series 1997-1983, Class Z, | ||||||||
6.500%, 12/15/2023 | 18,511 | 19,771 | ||||||
Series 2002-2528, Class KM, | ||||||||
5.500%, 11/15/2022 | 47,136 | 48,674 | ||||||
Series 2003-2634, Class PT, | ||||||||
5.000%, 06/15/2023 | 17,926 | 18,593 | ||||||
Series 2004-2877, Class AL, | ||||||||
5.000%, 10/15/2024 | 6,640 | 6,953 | ||||||
Series 2005-3005, Class ED, | ||||||||
5.000%, 07/15/2025 | 72,924 | 77,364 | ||||||
Series 2006-3104, Class DH, | ||||||||
5.000%, 01/15/2026 | 53,882 | 57,599 | ||||||
Series 2009-3575, Class EB, | ||||||||
4.000%, 09/15/2024 | 23,909 | 24,834 | ||||||
Series 2010-3661, Class B, | ||||||||
4.000%, 04/15/2025 | 26,359 | 27,527 | ||||||
Series 2010-3670, Class LX, | ||||||||
2.000%, 05/15/2025 | 920 | 920 | ||||||
Series 2010-3710, Class MG, | ||||||||
4.000%, 08/15/2025(c) | 36,827 | 39,732 | ||||||
Series 2010-3737, Class NA, | ||||||||
3.500%, 06/15/2025 | 16,149 | 16,373 | ||||||
Series 2010-3766, Class HD, | ||||||||
2.500%, 11/15/2020 | 2,118 | 2,118 | ||||||
Series 2010-3779, Class KJ, | ||||||||
2.750%, 11/15/2025 | 71,804 | 74,073 | ||||||
Series 2011-3829, Class BE, | ||||||||
3.500%, 03/15/2026 | 30,442 | 32,027 | ||||||
Series 2011-3845, Class FQ, | ||||||||
1M US L + 0.25%, 02/15/2026(a) | 12,600 | 12,579 | ||||||
Series 2011-3872, Class ND, | ||||||||
2.000%, 12/15/2021 | 16,623 | 16,663 |
Principal Amount | Value (Note 2) | |||||||
Series 2011-3874, Class DW, | ||||||||
3.500%, 06/15/2021 | $ | 20,155 | $ | 20,240 | ||||
Series 2011-3907, Class FM, | ||||||||
1M US L + 0.35%, 05/15/2026 (a) | 20,250 | 20,255 | ||||||
Series 2011-3945, Class BJ, | ||||||||
2.000%, 03/15/2026 | 62,364 | 63,026 | ||||||
Series 2012-4003, Class BG, | ||||||||
2.000%, 10/15/2026 | 92,760 | 94,866 | ||||||
Series 2012-4016, Class AB, | ||||||||
2.000%, 09/15/2025 | 14,082 | 14,091 | ||||||
1,489,650 | ||||||||
Ginnie Mae | ||||||||
Series 2010-101, Class GU, | ||||||||
4.000%, 08/20/2025(c) | 40,503 | 42,812 | ||||||
Series 2012-47, Class VA, | ||||||||
3.500%, 07/20/2023 | 49,542 | 50,640 | ||||||
Series 2013-53, Class KN, | ||||||||
1.500%, 08/20/2025 | 43,908 | 44,479 | ||||||
137,931 | ||||||||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | ||||||||
(Cost $2,943,904) | 2,986,850 |
Principal Amount | Value (Note 2) | |||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES (0.41%) | ||||||||
Fannie Mae-Aces | ||||||||
Series 2012-M10, Class AFL, | ||||||||
1M US L + 0.45%, 09/25/2022 (a) | 52,480 | 52,471 | ||||||
Series 2013-M14, Class APT, | ||||||||
2.618%, 04/25/2023(a) | 8,831 | 8,888 | ||||||
Series 2016-M13, Class FA, | ||||||||
1M US L + 0.67%, 11/25/2023 (a) | 36,444 | 36,639 | ||||||
97,998 | ||||||||
Freddie Mac Multifamily | ||||||||
Structured Pass Through | ||||||||
Certificates | ||||||||
Series 2012-K023, Class X1, | ||||||||
1.224%, 08/25/2022(a) | 3,716,393 | 64,615 | ||||||
Series 2013-K026, Class X1, | ||||||||
0.961%, 11/25/2022(a) | 829,470 | 12,800 | ||||||
Series 2015-K721, Class A1, | ||||||||
2.610%, 01/25/2022 | 51,510 | 52,064 | ||||||
Series 2015-KF07, Class A, | ||||||||
1M US L + 0.29%, 02/25/2025 (a) | 35,315 | 35,142 | ||||||
Series 2015-KF12, Class A, | ||||||||
1M US L + 0.70%, 09/25/2022 (a) | 17,015 | 17,048 | ||||||
Series 2016-KF14, Class A, | ||||||||
1M US L + 0.65%, 01/25/2023 (a) | 23,724 | 23,766 | ||||||
Series 2016-KJ08, Class A2, | ||||||||
2.356%, 08/25/2022 | 244,455 | 249,145 | ||||||
Series 2017-J15L, Class AFL, | ||||||||
1M US L + 0.35%, 08/25/2025 (a) | 61,396 | 60,873 | ||||||
Series 2017-K728, Class A2, | ||||||||
3.064%, 08/25/2024(a) | 117,000 | 126,666 |
53 | October 31, 2020
ALPS | Smith Short Duration Bond Fund
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 2018-KI02, Class A, | ||||||||
1M US L + 0.20%, 02/25/2021(a) | $ | 988 | $ | 988 | ||||
643,107 | ||||||||
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES | ||||||||
(Cost $732,103) | 741,105 |
Principal Amount | Value (Note 2) | |||||||
MORTGAGE-BACKED SECURITIES (2.12%) | ||||||||
Fannie Mae Pool | ||||||||
Series 2010-466760, | ||||||||
3.810%, 12/01/2020 | 41,072 | 41,062 | ||||||
Series 2011-468551, | ||||||||
3.980%, 07/01/2021 | 50,000 | 50,625 | ||||||
Series 2011-AE0800, | ||||||||
3.643%, 12/01/2020(a) | 19,660 | 19,658 | ||||||
Series 2011-FN0001, | ||||||||
3.763%, 12/01/2020(a) | 33,207 | 33,202 | ||||||
Series 2011-MA0717, | ||||||||
3.500%, 04/01/2026 | 52,711 | 55,162 | ||||||
Series 2012-471513, | ||||||||
2.900%, 06/01/2022 | 83,122 | 85,278 | ||||||
Series 2012-471690, | ||||||||
2.790%, 07/01/2022 | 157,929 | 162,234 | ||||||
Series 2012-471713, | ||||||||
2.850%, 06/01/2022 | 66,305 | 66,265 | ||||||
Series 2012-AL2293, | ||||||||
4.381%, 06/01/2021(a) | 120,735 | 121,363 | ||||||
Series 2014-AM7448, | ||||||||
2.730%, 12/01/2021 | 229,978 | 229,919 | ||||||
Series 2016-AL8938, | ||||||||
2.708%, 04/01/2022(a) | 41,475 | 42,114 | ||||||
Series 2016-AL8941, | ||||||||
2.819%, 01/01/2024(a) | 61,182 | 64,518 | ||||||
Series 2016-AN2716, | ||||||||
2.150%, 07/01/2021 | 139,666 | 140,167 | ||||||
Series 2017-AN6641, | ||||||||
2.710%, 12/01/2023 | 1,700,000 | 1,792,773 | ||||||
Series 2018-AN8096, | ||||||||
3.020%, 06/01/2024 | 305,000 | 310,559 | ||||||
Series 2018-BL0760, | ||||||||
3.790%, 12/01/2025 | 455,000 | 496,413 | ||||||
Series 2019-BL2539, | ||||||||
3.050%, 05/01/2024 | 142,233 | 147,924 | ||||||
3,859,236 | ||||||||
TOTAL MORTGAGE-BACKED SECURITIES | ||||||||
(Cost $3,771,322) | 3,859,236 | |||||||
CORPORATE BONDS (69.59%) | ||||||||
Aerospace & Defense (1.05%) | ||||||||
Boeing Co. | ||||||||
4.508%, 05/01/2023 | 600,000 | 635,936 |
Principal Amount | Value (Note 2) | |||||||
Huntington Ingalls Industries, Inc. | ||||||||
3.844%, 05/01/2025(d) | $ | 425,000 | $ | 468,092 | ||||
5.000%, 11/15/2025(d) | 791,000 | 811,263 | ||||||
Total Aerospace & Defense | 1,915,291 | |||||||
Airlines (0.29%) | ||||||||
Southwest Airlines Co. | ||||||||
4.750%, 05/04/2023 | 500,000 | 535,895 | ||||||
Apparel & Textile Products (0.52%) | ||||||||
Ralph Lauren Corp. | ||||||||
1.700%, 06/15/2022 | 925,000 | 943,832 | ||||||
Automobiles Manufacturing (5.79%) | ||||||||
American Honda Finance Corp. | ||||||||
0.650%, 09/08/2023 | 1,500,000 | 1,505,518 | ||||||
Ford Motor Co. | ||||||||
8.500%, 04/21/2023 | 1,500,000 | 1,658,017 | ||||||
Ford Motor Credit Co. LLC | ||||||||
2.343%, 11/02/2020 | 60,000 | 60,000 | ||||||
3.200%, 01/15/2021 | 1,100,000 | 1,102,063 | ||||||
5.875%, 08/02/2021 | 450,000 | 460,103 | ||||||
General Motors Co. | ||||||||
5.400%, 10/02/2023 | 1,250,000 | 1,383,417 | ||||||
General Motors Financial Co., Inc. | ||||||||
1.700%, 08/18/2023 | 1,130,000 | 1,141,055 | ||||||
Nissan Motor Co., Ltd. | ||||||||
3.043%, 09/15/2023(d) | 1,685,000 | 1,710,995 | ||||||
Toyota Motor Credit Corp. | ||||||||
0.450%, 07/22/2022 | 500,000 | 501,627 | ||||||
0.500%, 08/14/2023 | 1,000,000 | 1,006,355 | ||||||
Total Automobiles Manufacturing | 10,529,150 | |||||||
Banks (6.58%) | ||||||||
Associated Bank NA/Green Bay WI | ||||||||
3.500%, 08/13/2021 | 450,000 | 459,217 | ||||||
Bank of New Zealand | ||||||||
2.000%, 02/21/2025(d) | 1,635,000 | 1,709,665 | ||||||
CIT Group, Inc. | ||||||||
4.125%, 03/09/2021 | 251,000 | 253,140 | ||||||
1D US SOFR + 3.827%, | ||||||||
06/19/2024(a) | 855,000 | 888,131 | ||||||
Citizens Financial Group, Inc. | ||||||||
4.150%, 09/28/2022(d) | 400,000 | 421,533 | ||||||
Cooperatieve Rabobank UA | ||||||||
3.950%, 11/09/2022 | 250,000 | 266,634 | ||||||
Credit Suisse AG | ||||||||
1.000%, 05/05/2023 | 850,000 | 861,107 | ||||||
Danske Bank A/S | ||||||||
5.000%, 01/12/2022(d) | 950,000 | 995,208 | ||||||
5.375%, 01/12/2024(d) | 250,000 | 281,094 | ||||||
1Y US TI + 1.03%, | ||||||||
12/08/2023(a)(d) | 1,000,000 | 1,001,945 | ||||||
1Y US TI + 1.35%, | ||||||||
09/11/2026(a)(d) | 500,000 | 497,195 | ||||||
First Horizon National Corp. | ||||||||
3.550%, 05/26/2023 | 500,000 | 526,754 |
54 | October 31, 2020
ALPS | Smith Short Duration Bond Fund
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
First Republic Bank | ||||||||
1D US SOFR + 0.62%, | ||||||||
02/12/2024(a) | $ | 860,000 | $ | 885,661 | ||||
FNB Corp. | ||||||||
2.200%, 02/24/2023 | 200,000 | 202,226 | ||||||
Lloyds Banking Group PLC | ||||||||
1Y US TI + 1.00%, 02/05/2026(a) | 500,000 | 521,641 | ||||||
1Y US TI + 1.10%, 06/15/2023(a) | 200,000 | 201,677 | ||||||
Santander UK PLC | ||||||||
2.100%, 01/13/2023 | 250,000 | 258,123 | ||||||
Synovus Bank/Columbus GA | ||||||||
1D US SOFR + 0.945%, | ||||||||
02/10/2023(a) | 500,000 | 506,739 | ||||||
US Bank NA | ||||||||
3.450%, 11/16/2021 | 250,000 | 257,672 | ||||||
Wells Fargo & Co. | ||||||||
1D US SOFR + 1.60%, | ||||||||
06/02/2024(a) | 200,000 | 204,486 | ||||||
3M US L + 0.825%, | ||||||||
10/30/2025(a) | 750,000 | 788,567 | ||||||
Total Banks | 11,988,415 | |||||||
Biotechnology (1.16%) | ||||||||
Royalty Pharma PLC | ||||||||
0.750%, 09/02/2023(d) | 2,100,000 | 2,100,483 | ||||||
Cable & Satellite (1.67%) | ||||||||
Charter Communications Operating | ||||||||
LLC / Charter Communications | ||||||||
Operating Capital | ||||||||
3M US L + 1.65%, 02/01/2024(a) | 1,215,000 | 1,246,012 | ||||||
Sirius XM Radio, Inc. | ||||||||
3.875%, 08/01/2022(d) | 1,000,000 | 1,008,750 | ||||||
Time Warner Cable LLC | ||||||||
4.000%, 09/01/2021 | 750,000 | 764,811 | ||||||
Total Cable & Satellite | 3,019,573 | |||||||
Chemicals (3.30%) | ||||||||
Albemarle Corp. | ||||||||
Series WI | ||||||||
3M US L + 1.05%, 11/15/2022(a) | 1,000,000 | 998,744 | ||||||
DuPont de Nemours, Inc. | ||||||||
3.766%, 11/15/2020 | 100,000 | 100,114 | ||||||
LYB International Finance III LLC | ||||||||
1.250%, 10/01/2025 | 1,700,000 | 1,706,183 | ||||||
3M US L + 1.00%, 10/01/2023(a) | 1,700,000 | 1,701,234 | ||||||
Nutrition & Biosciences, Inc. | ||||||||
0.697%, 09/15/2022(d) | 1,500,000 | 1,504,821 | ||||||
Total Chemicals | 6,011,096 | |||||||
Commercial Finance (0.81%) | ||||||||
AerCap Ireland Capital DAC / AerCap | ||||||||
Global Aviation Trust | ||||||||
3.150%, 02/15/2024 | 830,000 | 825,201 | ||||||
6.500%, 07/15/2025 | 600,000 | 660,963 | ||||||
Total Commercial Finance | 1,486,164 |
Principal Amount | Value (Note 2) | |||||||
Consumer Finance (2.07%) | ||||||||
Ally Financial, Inc. | ||||||||
1.450%, 10/02/2023 | $ | 1,730,000 | $ | 1,747,047 | ||||
Capital One Bank USA NA | ||||||||
1D US SOFR + 0.616%, | ||||||||
01/27/2023(a) | 300,000 | 305,109 | ||||||
Capital One Financial Corp. | ||||||||
2.600%, 05/11/2023 | 400,000 | 419,411 | ||||||
Global Payments, Inc. | ||||||||
2.650%, 02/15/2025 | 250,000 | 264,664 | ||||||
PayPal Holdings, Inc. | ||||||||
1.350%, 06/01/2023 | 1,000,000 | 1,022,978 | ||||||
Total Consumer Finance | 3,759,209 | |||||||
Containers & Packaging (0.15%) | ||||||||
WestRock RKT LLC | ||||||||
4.000%, 03/01/2023 | 250,000 | 267,142 | ||||||
Department Stores (0.59%) | ||||||||
Nordstrom, Inc. | ||||||||
8.750%, 05/15/2025(d) | 1,000,000 | 1,095,660 | ||||||
Diversified Banks (7.11%) | ||||||||
Bank of America Corp. | ||||||||
3M US L + 1.021%, | ||||||||
04/24/2023(a) | 1,550,000 | 1,601,362 | ||||||
Citigroup, Inc. | ||||||||
4.300%, 11/20/2026 | 750,000 | 861,331 | ||||||
JPMorgan Chase & Co. | ||||||||
1D US SOFR + 0.60%, | ||||||||
09/16/2024(a) | 2,500,000 | 2,505,217 | ||||||
1D US SOFR + 1.455%, | ||||||||
06/01/2024(a) | 1,500,000 | 1,533,005 | ||||||
Mitsubishi UFJ Financial Group, Inc. | ||||||||
1.412%, 07/17/2025 | 1,750,000 | 1,779,993 | ||||||
1Y US TI + 0.68%, 09/15/2024(a) | 500,000 | 500,891 | ||||||
Mizuho Financial Group, Inc. | ||||||||
3M US L + 0.61%, 09/08/2024(a) | 1,000,000 | 998,309 | ||||||
3M US L + 0.99%, 07/10/2024(a) | 1,000,000 | 1,010,433 | ||||||
Natwest Group PLC | ||||||||
6.125%, 12/15/2022 | 515,000 | 563,953 | ||||||
1Y US TI + 2.15%, 05/22/2024(a) | 1,000,000 | 1,033,688 | ||||||
Standard Chartered PLC | ||||||||
3M US L + 1.209%, | ||||||||
01/30/2026(a)(d) | 500,000 | 520,614 | ||||||
Total Diversified Banks | 12,908,796 | |||||||
Electrical Equipment Manufacturing (1.44%) | ||||||||
Lennox International, Inc. | ||||||||
1.350%, 08/01/2025 | 500,000 | 506,074 | ||||||
Otis Worldwide Corp. | ||||||||
3M US L + 0.45%, 04/05/2023(a) | 100,000 | 100,031 | ||||||
Roper Technologies, Inc. | ||||||||
0.450%, 08/15/2022 | 1,365,000 | 1,367,699 | ||||||
2.350%, 09/15/2024 | 250,000 | 264,299 |
55 | October 31, 2020
ALPS | Smith Short Duration Bond Fund
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Trimble, Inc. | ||||||||
4.750%, 12/01/2024 | $ | 318,000 | $ | 361,979 | ||||
Total Electrical Equipment Manufacturing | 2,600,082 | |||||||
Entertainment Content (0.14%) | ||||||||
Fox Corp. | ||||||||
3.666%, 01/25/2022 | 250,000 | 260,004 | ||||||
Financial Services (10.38%) | ||||||||
Ameriprise Financial, Inc. | ||||||||
3.000%, 03/22/2022 | 250,000 | 259,214 | ||||||
3.000%, 04/02/2025 | 300,000 | 325,308 | ||||||
Bank of New York Mellon Corp. | ||||||||
1.850%, 01/27/2023 | 300,000 | 309,545 | ||||||
Goldman Sachs Group, Inc. | ||||||||
3.500%, 04/01/2025 | 1,777,000 | 1,958,261 | ||||||
3M US L + 1.053%, | ||||||||
06/05/2023(a) | 800,000 | 829,136 | ||||||
Intercontinental Exchange, Inc. | ||||||||
0.700%, 06/15/2023 | 1,350,000 | 1,358,330 | ||||||
Series FRN | ||||||||
3M US L + 0.65%, 06/15/2023(a) | 1,350,000 | 1,355,009 | ||||||
Jefferies Group LLC | ||||||||
5.125%, 01/20/2023 | 800,000 | 871,711 | ||||||
LPL Holdings, Inc. | ||||||||
5.750%, 09/15/2025(d) | 1,700,000 | 1,759,499 | ||||||
Morgan Stanley | ||||||||
Series I | ||||||||
1D US SOFR + 0.745%, | ||||||||
10/21/2025(a) | 750,000 | 748,798 | ||||||
2.750%, 05/19/2022 | 75,000 | 77,692 | ||||||
4.875%, 11/01/2022 | 500,000 | 541,138 | ||||||
Series GMTN | ||||||||
3.125%, 01/23/2023 | 550,000 | 581,414 | ||||||
3.700%, 10/23/2024 | 1,200,000 | 1,334,550 | ||||||
National Securities Clearing Corp. | ||||||||
1.200%, 04/23/2023(d) | 400,000 | 407,497 | ||||||
1.500%, 04/23/2025(d) | 400,000 | 411,194 | ||||||
State Street Corp. | ||||||||
1D US SOFR + 0.94%, | ||||||||
11/01/2025(a) | 250,000 | 264,849 | ||||||
1D US SOFR + 2.69%, | ||||||||
03/30/2023(a)(d) | 1,000,000 | 1,034,193 | ||||||
Sumitomo Mitsui Trust Bank, Ltd. | ||||||||
0.800%, 09/12/2023(d) | 2,000,000 | 2,008,782 | ||||||
TD Ameritrade Holding Corp. | ||||||||
3M US L + 0.43%, 11/01/2021(a) | 200,000 | 200,724 | ||||||
UBS AG/London | ||||||||
1.750%, 04/21/2022(d) | 700,000 | 712,746 | ||||||
UBS Group AG | ||||||||
1Y US TI + 0.83%, | ||||||||
07/30/2024(a)(d) | 1,000,000 | 1,004,335 | ||||||
USAA Capital Corp. | ||||||||
1.500%, 05/01/2023(d) | 500,000 | 513,114 | ||||||
Total Financial Services | 18,867,039 |
Principal Amount | Value (Note 2) | |||||||
Food & Beverage (2.29%) | ||||||||
Campbell Soup Co. | ||||||||
3M US L + 0.63%, 03/15/2021(a) | $ | 75,000 | $ | 75,122 | ||||
Cargill, Inc. | ||||||||
1.375%, 07/23/2023(d) | 1,070,000 | 1,094,531 | ||||||
Nestle Holdings, Inc. | ||||||||
0.375%, 01/15/2024(d) | 3,000,000 | 2,987,116 | ||||||
Total Food & Beverage | 4,156,769 | |||||||
Health Care Facilities & Services (1.70%) | ||||||||
Cigna Corp. | ||||||||
Series WI | ||||||||
3M US L + 0.65%, 09/17/2021(a) | 500,000 | 500,100 | ||||||
HCA, Inc. | ||||||||
4.750%, 05/01/2023 | 1,387,000 | 1,514,053 | ||||||
5.000%, 03/15/2024 | 500,000 | 560,288 | ||||||
Jaguar Holding Co. II / PPD | ||||||||
Development LP | ||||||||
4.625%, 06/15/2025(d) | 500,000 | 517,310 | ||||||
Total Health Care Facilities & Services | 3,091,751 | |||||||
Home & Office Products Manufacturing (0.45%) | ||||||||
Newell Brands, Inc. | ||||||||
4.875%, 06/01/2025 | 750,000 | 813,038 | ||||||
Industrial Other (0.55%) | ||||||||
Honeywell International, Inc. | ||||||||
3M US L + 0.23%, 08/19/2022(a) | 1,000,000 | 1,001,408 | ||||||
Life Insurance (1.10%) | ||||||||
Athene Global Funding | ||||||||
1.200%, 10/13/2023(d) | 2,000,000 | 2,002,120 | ||||||
Machinery Manufacturing (0.17%) | ||||||||
Caterpillar Financial Services Corp. | ||||||||
0.950%, 05/13/2022 | 300,000 | 302,802 | ||||||
Pharmaceuticals (4.22%) | ||||||||
AbbVie, Inc. | ||||||||
2.150%, 11/19/2021(d) | 500,000 | 508,928 | ||||||
2.300%, 11/21/2022(d) | 1,286,000 | 1,332,856 | ||||||
2.600%, 11/21/2024(d) | 500,000 | 532,341 | ||||||
Bausch Health Cos., Inc. | ||||||||
6.125%, 04/15/2025(d) | 600,000 | 617,400 | ||||||
7.000%, 03/15/2024(d) | 1,150,000 | 1,192,838 | ||||||
Elanco Animal Health, Inc. | ||||||||
4.912%, 08/27/2021 | 518,000 | 530,626 | ||||||
5.272%, 08/28/2023 | 400,000 | 433,166 | ||||||
Upjohn, Inc. | ||||||||
1.125%, 06/22/2022(d) | 2,000,000 | 2,018,928 | ||||||
1.650%, 06/22/2025(d) | 500,000 | 511,053 | ||||||
Total Pharmaceuticals | 7,678,136 | |||||||
Pipeline (2.34%) | ||||||||
Buckeye Partners LP | ||||||||
4.150%, 07/01/2023 | 340,000 | 335,538 | ||||||
4.350%, 10/15/2024 | 750,000 | 729,844 |
56 | October 31, 2020
ALPS | Smith Short Duration Bond Fund
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Gray Oak Pipeline LLC | ||||||||
2.000%, 09/15/2023(d) | $ | 1,000,000 | $ | 1,004,330 | ||||
Midwest Connector Capital Co. LLC | ||||||||
3.625%, 04/01/2022(d) | 1,095,000 | 1,106,305 | ||||||
MPLX LP | ||||||||
5.250%, 01/15/2025 | 500,000 | 515,673 | ||||||
Western Midstream Operating LP | ||||||||
3M US L + 1.85%, 01/13/2023(a) | 600,000 | 558,382 | ||||||
Total Pipeline | 4,250,072 | |||||||
Railroad (0.77%) | ||||||||
Westinghouse Air Brake | ||||||||
Technologies Corp. | ||||||||
3.200%, 06/15/2025 | 1,320,000 | 1,407,559 | ||||||
Real Estate (0.37%) | ||||||||
GLP Capital LP / GLP Financing II, Inc. | ||||||||
5.375%, 11/01/2023 | 620,000 | 665,424 | ||||||
Refining & Marketing (2.92%) | ||||||||
HollyFrontier Corp. | ||||||||
2.625%, 10/01/2023 | 2,000,000 | 1,986,124 | ||||||
Marathon Petroleum Corp. | ||||||||
4.500%, 05/01/2023 | 500,000 | 537,734 | ||||||
Phillips 66 | ||||||||
3.700%, 04/06/2023 | 500,000 | 535,311 | ||||||
Valero Energy Corp. | ||||||||
3M US L + 1.15%, 09/15/2023(a) | 2,250,000 | 2,249,391 | ||||||
Total Refining & Marketing | 5,308,560 | |||||||
Restaurants (0.34%) | ||||||||
1011778 BC ULC / New Red Finance, Inc. | ||||||||
4.250%, 05/15/2024(d) | 600,000 | 612,900 | ||||||
Retail - Consumer Discretionary (0.87%) | ||||||||
Gap, Inc. | ||||||||
8.375%, 05/15/2023(d) | 500,000 | 558,800 | ||||||
Penske Automotive Group, Inc. | ||||||||
3.500%, 09/01/2025 | 1,000,000 | 1,010,000 | ||||||
Total Retail - Consumer Discretionary | 1,568,800 | |||||||
Semiconductors (1.22%) | ||||||||
Microchip Technology, Inc. | ||||||||
2.670%, 09/01/2023(d) | 500,000 | 519,154 | ||||||
3.922%, 06/01/2021 | 1,647,000 | 1,678,397 | ||||||
Total Semiconductors | 2,197,551 | |||||||
Software & Services (1.26%) | ||||||||
Intuit, Inc. | ||||||||
0.650%, 07/15/2023 | 1,000,000 | 1,007,536 | ||||||
Leidos, Inc. | ||||||||
2.950%, 05/15/2023(d) | 1,230,000 | 1,295,532 | ||||||
Total Software & Services | 2,303,068 |
Principal Amount | Value (Note 2) | |||||||
Supermarkets & Pharmacies (0.92%) | ||||||||
Albertsons Cos. Inc / Safeway, Inc. / New Albertsons LP / Albertsons LLC | ||||||||
3.500%, 02/15/2023(d) | $ | 1,650,000 | $ | 1,678,463 | ||||
Transportation & Logistics (1.85%) | ||||||||
Cummins, Inc. | ||||||||
0.750%, 09/01/2025 | 1,350,000 | 1,351,019 | ||||||
PACCAR Financial Corp. | ||||||||
0.350%, 08/11/2023 | 1,000,000 | 999,386 | ||||||
0.800%, 06/08/2023 | 1,000,000 | 1,008,463 | ||||||
Total Transportation & Logistics | 3,358,868 | |||||||
Utilities (1.58%) | ||||||||
Dominion Energy, Inc. | ||||||||
2.715%, 08/15/2021(c) | 500,000 | 508,462 | ||||||
4.104%, 04/01/2021(c) | 400,000 | 406,007 | ||||||
DTE Energy Co. | ||||||||
Series F | ||||||||
1.050%, 06/01/2025 | 1,000,000 | 1,004,518 | ||||||
Duke Energy Progress LLC | ||||||||
Series A | ||||||||
3M US L + 0.18%, 02/18/2022 (a) | 500,000 | 500,113 | ||||||
Exelon Corp. | ||||||||
3.497%, 06/01/2022 | 435,000 | 453,613 | ||||||
Total Utilities | 2,872,713 | |||||||
Waste & Environment Services & Equipment (0.39%) | ||||||||
GFL Environmental, Inc. | ||||||||
4.250%, 06/01/2025(d) | 700,000 | 715,313 | ||||||
Wireless Telecommunications Services (1.23%) | ||||||||
T-Mobile USA, Inc. | ||||||||
1.500%, 02/15/2026(d) | 1,000,000 | 1,008,605 | ||||||
3.500%, 04/15/2025(d) | 1,125,000 | 1,233,686 | ||||||
Total Wireless Telecommunications Services | 2,242,291 | |||||||
TOTAL CORPORATE BONDS | ||||||||
(Cost $124,571,942) | 126,515,437 | |||||||
GOVERNMENT BONDS (23.97%) | ||||||||
U.S. Treasury Bonds (23.97%) | ||||||||
United States Treasury Notes | ||||||||
0.125%, 04/30/2022 | 5,109,000 | 5,108,601 | ||||||
0.125%, 05/31/2022 | 4,566,000 | 4,564,930 | ||||||
0.125%, 06/30/2022 | 2,186,000 | 2,185,317 | ||||||
0.125%, 08/31/2022 | 4,000,000 | 3,998,438 | ||||||
0.125%, 09/30/2022 | 14,246,000 | 14,239,321 | ||||||
0.125%, 09/15/2023 | 3,183,000 | 3,176,659 | ||||||
0.250%, 08/31/2025 | 1,926,000 | 1,915,166 | ||||||
0.250%, 09/30/2025 | 3,589,000 | 3,567,270 | ||||||
0.375%, 03/31/2022 | 3,037,000 | 3,047,440 | ||||||
1.125%, 02/28/2022 | 1,760,000 | 1,783,237 | ||||||
Total U.S. Treasury Bonds | 43,586,379 | |||||||
TOTAL GOVERNMENT BONDS | ||||||||
(Cost $43,599,516) | 43,586,379 |
57 | October 31, 2020
ALPS | Smith Short Duration Bond Fund
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
MUNICIPAL BONDS (0.07%) | ||||||||
City of Colorado Springs Co. Utilities System Revenue 5.338%, 11/15/2030 | $ | 125,000 | $ | 125,210 | ||||
TOTAL MUNICIPAL BONDS | ||||||||
(Cost $125,138) | 125,210 |
7-Day Yield | Shares | Value (Note 2) | |||||||
SHORT TERM INVESTMENTS (0.68%) | |||||||||
Money Market Fund (0.68%) | |||||||||
Morgan Stanley Institutional Liquidity Funds - Government Portfolio | 0.020 | % | 1,237,073 | 1,237,073 | |||||
TOTAL SHORT TERM INVESTMENTS | |||||||||
(Cost $1,237,073) | 1,237,073 | ||||||||
TOTAL INVESTMENTS (98.48%) | |||||||||
(Cost $176,980,998) | $ | 179,051,290 | |||||||
Other Assets In Excess Of Liabilities (1.52%) | 2,761,785 | ||||||||
NET ASSETS (100.00%) | $ | 181,813,075 |
Investment Abbreviations:
LIBOR - London Interbank Offered Rate
SOFR - Secured Overnight Financing Rate
Reference Rates:
1M US L - 1 Month LIBOR as of October 31, 2020 was 0.14%
3M US L - 3 Month LIBOR as of October 31, 2020 was 0.22%
1Y US TI - 1 Year Treasury Yield as of October 31, 2020 was 0.13%
10Y US TI - 10 Year Treasury Yield as of October 31, 2020 was 0.88%
1D US SOFR - 1 Day SOFR as of October 31, 2020 was 0.09%
(a) | Floating or variable rate security. The reference rate is described above. The rate in effect as of October 31, 2020 is based on the reference rate plus the displayed spread as of the security's last reset date. |
(b) | Issued with zero coupon. |
(c) | Step bond. Coupon changes periodically based upon a predetermined schedule. Interest rate disclosed is that which is in effect as of October 31, 2020. |
(d) | Security exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of October 31, 2020, the aggregate market value of those securities was $45,027,187, representing 24.77% of net assets. |
See Notes to Financial Statements.
58 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
COLLATERALIZED MORTGAGE OBLIGATIONS (9.04%) | ||||||||
Fannie Mae | ||||||||
Series 1993-31, Class PN, | ||||||||
7.000%, 09/25/2023 | $ | 244,955 | $ | 259,058 | ||||
Series 1997-22, Class F, | ||||||||
1.713%, 03/25/2027(a) | 37,514 | 37,643 | ||||||
Series 1997-76, Class FO, | ||||||||
1M US L + 0.50%, 09/17/2027(a) | 27,722 | 27,807 | ||||||
Series 1999-58, Class F, | ||||||||
1M US L + 0.40%, 11/18/2029(a) | 68,918 | 68,997 | ||||||
Series 2000-40, Class FA, | ||||||||
1M US L + 0.50%, 07/25/2030(a) | 24,144 | 23,957 | ||||||
Series 2000-45, Class F, | ||||||||
1M US L + 0.45%, 12/25/2030(a) | 25,702 | 25,772 | ||||||
Series 2001-27, Class F, | ||||||||
1M US L + 0.50%, 06/25/2031(a) | 19,738 | 19,807 | ||||||
Series 2001-29, Class Z, | ||||||||
6.500%, 07/25/2031 | 76,241 | 88,446 | ||||||
Series 2001-51, Class OD, | ||||||||
6.500%, 10/25/2031 | 65,074 | 69,606 | ||||||
Series 2001-52, Class XZ, | ||||||||
6.500%, 10/25/2031 | 50,815 | 60,116 | ||||||
Series 2001-59, Class F, | ||||||||
1M US L + 0.60%, 11/25/2031(a) | 161,390 | 162,685 | ||||||
Series 2001-60, Class OF, | ||||||||
1M US L + 0.95%, 10/25/2031(a) | 19,965 | 20,381 | ||||||
Series 2001-63, Class FD, | ||||||||
1M US L + 0.60%, 12/18/2031(a) | 23,744 | 23,897 | ||||||
Series 2001-63, Class TC, | ||||||||
6.000%, 12/25/2031 | 30,923 | 35,828 | ||||||
Series 2001-68, Class PH, | ||||||||
6.000%, 12/25/2031 | 28,031 | 32,296 | ||||||
Series 2001-71, Class FE, | ||||||||
1M US L + 0.65%, 11/25/2031(a) | 115,120 | 116,208 | ||||||
Series 2001-71, Class FS, | ||||||||
1M US L + 0.60%, 11/25/2031(a) | 94,145 | 93,100 | ||||||
Series 2001-81, Class GE, | ||||||||
6.000%, 01/25/2032 | 22,856 | 26,523 | ||||||
Series 2002-11, Class JF, | ||||||||
1M US L + 0.73%, 03/25/2032(a) | 70,708 | 71,586 | ||||||
Series 2002-12, Class FH, | ||||||||
1M US L + 1.05%, 01/25/2032(a) | 80,802 | 82,617 |
Principal Amount | Value (Note 2) | |||||||
Series 2002-13, Class FE, | ||||||||
1M US L + 0.90%, 03/25/2032(a) | $ | 89,150 | $ | 90,427 | ||||
Series 2002-16, Class TM, | ||||||||
7.000%, 04/25/2032 | 20,983 | 24,751 | ||||||
Series 2002-17, Class JF, | ||||||||
1M US L + 1.00%, 04/25/2032(a) | 41,325 | 42,219 | ||||||
Series 2002-18, Class FD, | ||||||||
1M US L + 0.80%, 02/25/2032(a) | 74,109 | 75,204 | ||||||
Series 2002-23, Class FA, | ||||||||
1M US L + 0.90%, 04/25/2032(a) | 62,989 | 63,707 | ||||||
Series 2002-34, Class EO, | ||||||||
–%, 05/18/2032(b) | 83,424 | 81,155 | ||||||
Series 2002-36, Class FS, | ||||||||
1M US L + 0.50%, 06/25/2032(a) | 76,352 | 76,551 | ||||||
Series 2002-44, Class FJ, | ||||||||
1M US L + 1.00%, 04/25/2032(a) | 114,358 | 116,829 | ||||||
Series 2002-47, Class FC, | ||||||||
1M US L + 0.60%, 11/25/2031(a) | 21,702 | 21,871 | ||||||
Series 2002-48, Class F, | ||||||||
1M US L + 1.00%, 07/25/2032(a) | 70,628 | 72,169 | ||||||
Series 2002-49, Class FC, | ||||||||
1M US L + 1.00%, 11/18/2031(a) | 44,953 | 45,881 | ||||||
Series 2002-60, Class FV, | ||||||||
1M US L + 1.00%, 04/25/2032(a) | 137,817 | 140,797 | ||||||
Series 2002-63, Class EZ, | ||||||||
6.000%, 10/25/2032 | 11,518 | 13,343 | ||||||
Series 2002-68, Class AF, | ||||||||
1M US L + 1.00%, 10/25/2032(a) | 31,116 | 31,796 | ||||||
Series 2002-7, Class FC, | ||||||||
1M US L + 0.75%, 01/25/2032(a) | 95,006 | 96,246 | ||||||
Series 2002-71, Class AQ, | ||||||||
4.000%, 11/25/2032 | 90,219 | 97,762 | ||||||
Series 2002-8, Class FA, | ||||||||
1M US L + 0.75%, 03/18/2032(a) | 27,551 | 27,980 | ||||||
Series 2002-80, Class CZ, | ||||||||
4.500%, 09/25/2032 | 89,780 | 108,593 | ||||||
Series 2002-9, Class FW, | ||||||||
1M US L + 0.55%, 03/25/2032(a) | 22,450 | 22,351 | ||||||
Series 2002-91, Class F, | ||||||||
1M US L + 0.55%, 01/25/2033(a) | 35,292 | 35,527 |
59 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 2003-107, Class FD, | ||||||||
1M US L + 0.50%, 11/25/2033(a) | $ | 22,680 | $ | 22,807 | ||||
Series 2003-110, Class CK, | ||||||||
3.000%, 11/25/2033 | 39,242 | 41,537 | ||||||
Series 2003-116, Class FA, | ||||||||
1M US L + 0.40%, 11/25/2033(a) | 46,026 | 46,173 | ||||||
Series 2003-119, Class ZP, | ||||||||
4.000%, 12/25/2033 | 29,476 | 33,123 | ||||||
Series 2003-119, Class FH, | ||||||||
1M US L + 0.50%, 12/25/2033(a) | 60,631 | 61,225 | ||||||
Series 2003-128, Class MF, | ||||||||
1M US L + 0.60%, 01/25/2034(a) | 89,632 | 88,394 | ||||||
Series 2003-131, Class CH, | ||||||||
5.500%, 01/25/2034 | 145,134 | 160,529 | ||||||
Series 2003-134, Class FC, | ||||||||
1M US L + 0.60%, 12/25/2032(a) | 50,733 | 51,376 | ||||||
Series 2003-14, Class AN, | ||||||||
3.500%, 03/25/2033 | 130,746 | 136,951 | ||||||
Series 2003-19, Class MB, | ||||||||
4.000%, 05/25/2031 | 59,561 | 65,522 | ||||||
Series 2003-21, Class OG, | ||||||||
4.000%, 01/25/2033 | 57,022 | 61,332 | ||||||
Series 2003-22, Class BZ, | ||||||||
6.000%, 04/25/2033 | 29,430 | 33,939 | ||||||
Series 2003-27, Class EK, | ||||||||
5.000%, 04/25/2033 | 43,549 | 50,348 | ||||||
Series 2003-30, Class JQ, | ||||||||
5.500%, 04/25/2033 | 45,281 | 51,355 | ||||||
Series 2003-32, Class UJ, | ||||||||
5.500%, 05/25/2033 | 61,370 | 68,796 | ||||||
Series 2003-41, Class OZ, | ||||||||
3.750%, 05/25/2033 | 120,349 | 134,083 | ||||||
Series 2003-42, Class JH, | ||||||||
5.500%, 05/25/2033 | 128,719 | 145,135 | ||||||
Series 2003-46, Class PJ, | ||||||||
5.500%, 06/25/2033 | 58,027 | 65,265 | ||||||
Series 2003-47, Class PE, | ||||||||
5.750%, 06/25/2033 | 56,926 | 64,110 | ||||||
Series 2003-64, Class JK, | ||||||||
3.500%, 07/25/2033 | 84,745 | 92,876 | ||||||
Series 2003-64, Class ZC, | ||||||||
5.000%, 07/25/2033 | 21,560 | 24,469 | ||||||
Series 2003-71, Class HD, | ||||||||
5.500%, 08/25/2033 | 230,000 | 256,595 | ||||||
Series 2003-76, Class EZ, | ||||||||
5.000%, 08/25/2033 | 224,598 | 253,189 | ||||||
Series 2003-94, Class CE, | ||||||||
5.000%, 10/25/2033 | 20,243 | 22,066 | ||||||
Series 2004-101, Class TB, | ||||||||
5.500%, 01/25/2035 | 178,636 | 199,795 |
Principal Amount | Value (Note 2) | |||||||
Series 2004-14, Class QB, | ||||||||
5.250%, 03/25/2034 | $ | 192,000 | $ | 220,972 | ||||
Series 2004-17, Class BA, | ||||||||
6.000%, 04/25/2034 | 112,264 | 144,842 | ||||||
Series 2004-17, Class DZ, | ||||||||
5.500%, 04/25/2034 | 46,761 | 51,822 | ||||||
Series 2004-26, Class CG, | ||||||||
4.500%, 08/25/2033 | 26,345 | 27,444 | ||||||
Series 2004-36, Class CB, | ||||||||
5.000%, 05/25/2034 | 122,163 | 140,425 | ||||||
Series 2004-36, Class FA, | ||||||||
1M US L + 0.40%, 05/25/2034(a) | 48,648 | 48,922 | ||||||
Series 2004-53, Class FC, | ||||||||
1M US L + 0.45%, 07/25/2034(a) | 273,996 | 268,390 | ||||||
Series 2004-54, Class FL, | ||||||||
1M US L + 0.40%, 07/25/2034(a) | 208,728 | 210,190 | ||||||
Series 2004-60, Class AC, | ||||||||
5.500%, 04/25/2034 | 108,000 | 120,773 | ||||||
Series 2004-68, Class LC, | ||||||||
5.000%, 09/25/2029 | 65,534 | 72,373 | ||||||
Series 2004-77, Class AY, | ||||||||
4.500%, 10/25/2034 | 29,243 | 32,742 | ||||||
Series 2004-82, Class HK, | ||||||||
5.500%, 11/25/2034 | 80,435 | 93,938 | ||||||
Series 2004-92, Class TB, | ||||||||
5.500%, 12/25/2034 | 99,674 | 111,871 | ||||||
Series 2005-110, Class MP, | ||||||||
5.500%, 12/25/2035 | 40,704 | 45,641 | ||||||
Series 2005-120, Class FE, | ||||||||
1M US L + 0.52%, 01/25/2036(a) | 35,179 | 35,576 | ||||||
Series 2005-122, Class PY, | ||||||||
6.000%, 01/25/2036 | 324,000 | 381,578 | ||||||
Series 2005-17, Class EX, | ||||||||
5.250%, 03/25/2035 | 25,000 | 29,808 | ||||||
Series 2005-17, Class EZ, | ||||||||
4.500%, 03/25/2035 | 141,483 | 154,481 | ||||||
Series 2005-22, Class DA, | ||||||||
5.500%, 12/25/2034 | 14,142 | 14,401 | ||||||
Series 2005-29, Class ZA, | ||||||||
5.500%, 04/25/2035 | 98,923 | 113,568 | ||||||
Series 2005-3, Class CH, | ||||||||
5.250%, 02/25/2035 | 87,217 | 97,163 | ||||||
Series 2005-3, Class CP, | ||||||||
5.500%, 10/25/2034 | 923 | 909 | ||||||
Series 2005-35, Class DZ, | ||||||||
5.000%, 04/25/2035 | 235,601 | 268,032 | ||||||
Series 2005-48, Class TD, | ||||||||
5.500%, 06/25/2035 | 177,921 | 201,458 | ||||||
Series 2005-59, Class DF, | ||||||||
1M US L + 0.20%, 05/25/2035(a) | 5,921 | 5,934 |
60 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 2005-62, Class GZ, | ||||||||
5.750%, 07/25/2035 | $ | 468,298 | $ | 565,396 | ||||
Series 2005-62, Class ZD, | ||||||||
5.000%, 06/25/2035 | 107,458 | 116,555 | ||||||
Series 2005-62, Class JE, | ||||||||
5.000%, 06/25/2035 | 6,504 | 6,764 | ||||||
Series 2005-62, Class JC, | ||||||||
5.000%, 05/25/2035 | 12,159 | 12,644 | ||||||
Series 2005-64, Class PL, | ||||||||
5.500%, 07/25/2035 | 119,485 | 135,060 | ||||||
Series 2005-68, Class PG, | ||||||||
5.500%, 08/25/2035 | 54,487 | 62,139 | ||||||
Series 2005-68, Class BE, | ||||||||
5.250%, 08/25/2035 | 97,000 | 113,093 | ||||||
Series 2005-68, Class CZ, | ||||||||
5.500%, 08/25/2035 | 512,834 | 587,048 | ||||||
Series 2005-69, Class GZ, | ||||||||
4.500%, 08/25/2035 | 59,112 | 63,318 | ||||||
Series 2005-7, Class MZ, | ||||||||
4.750%, 02/25/2035 | 125,337 | 133,662 | ||||||
Series 2005-70, Class KP, | ||||||||
5.000%, 06/25/2035 | 55,312 | 62,541 | ||||||
Series 2005-70, Class NA, | ||||||||
5.500%, 08/25/2035 | 22,777 | 25,446 | ||||||
Series 2005-72, Class FB, | ||||||||
1M US L + 0.25%, 08/25/2035(a) | 31,083 | 31,109 | ||||||
Series 2005-79, Class DB, | ||||||||
5.500%, 09/25/2035 | 86,940 | 99,862 | ||||||
Series 2005-84, Class XM, | ||||||||
5.750%, 10/25/2035 | 95,384 | 108,142 | ||||||
Series 2005-89, Class F, | ||||||||
1M US L + 0.30%, 10/25/2035(a) | 22,817 | 22,383 | ||||||
Series 2005-99, Class ZA, | ||||||||
5.500%, 12/25/2035 | 102,024 | 130,713 | ||||||
Series 2005-99, Class FA, | ||||||||
1M US L + 0.30%, 11/25/2035(a) | 61,031 | 61,119 | ||||||
Series 2006-112, Class QC, | ||||||||
5.500%, 11/25/2036 | 35,305 | 41,484 | ||||||
Series 2006-114, Class HE, | ||||||||
5.500%, 12/25/2036 | 145,871 | 171,183 | ||||||
Series 2006-115, Class EF, | ||||||||
1M US L + 0.36%, 12/25/2036(a) | 26,274 | 25,778 | ||||||
Series 2006-16, Class HZ, | ||||||||
5.500%, 03/25/2036 | 562,135 | 633,452 | ||||||
Series 2006-39, Class EF, | ||||||||
1M US L + 0.40%, 05/25/2036(a) | 27,468 | 26,375 | ||||||
Series 2006-46, Class UD, | ||||||||
5.500%, 06/25/2036 | 33,000 | 39,500 | ||||||
Series 2006-48, Class DZ, | ||||||||
6.000%, 06/25/2036 | 75,837 | 116,769 |
Principal Amount | Value (Note 2) | |||||||
Series 2006-48, Class TF, | ||||||||
1M US L + 0.40%, 06/25/2036(a) | $ | 54,742 | $ | 55,098 | ||||
Series 2006-56, Class F, | ||||||||
1M US L + 0.30%, 07/25/2036(a) | 20,686 | 20,733 | ||||||
Series 2006-63, Class QH, | ||||||||
5.500%, 07/25/2036 | 51,450 | 58,692 | ||||||
Series 2006-71, Class ZH, | ||||||||
6.000%, 07/25/2036 | 73,314 | 86,981 | ||||||
Series 2006-95, Class FH, | ||||||||
1M US L + 0.45%, 10/25/2036(a) | 46,091 | 45,378 | ||||||
Series 2007-100, Class YF, | ||||||||
1M US L + 0.55%, 10/25/2037(a) | 26,261 | 26,041 | ||||||
Series 2007-109, Class GF, | ||||||||
1M US L + 0.68%, 12/25/2037(a) | 82,861 | 82,568 | ||||||
Series 2007-111, Class FC, | ||||||||
1M US L + 0.60%, 12/25/2037(a) | 56,232 | 56,923 | ||||||
Series 2007-117, Class FM, | ||||||||
1M US L + 0.70%, 01/25/2038(a) | 85,064 | 86,964 | ||||||
Series 2007-12, Class ZA, | ||||||||
6.000%, 03/25/2037 | 137,463 | 176,250 | ||||||
Series 2007-14, Class GZ, | ||||||||
5.500%, 03/25/2037 | 431,738 | 490,201 | ||||||
Series 2007-30, Class MB, | ||||||||
4.250%, 04/25/2037 | 108,071 | 116,597 | ||||||
Series 2007-33, Class HE, | ||||||||
5.500%, 04/25/2037 | 48,969 | 55,786 | ||||||
Series 2007-34, Class F, | ||||||||
1M US L + 0.39%, 04/25/2037(a) | 43,513 | 43,793 | ||||||
Series 2007-41, Class FA, | ||||||||
1M US L + 0.40%, 05/25/2037(a) | 33,117 | 33,286 | ||||||
Series 2007-51, Class CP, | ||||||||
5.500%, 06/25/2037 | 44,515 | 52,642 | ||||||
Series 2007-51, Class PB, | ||||||||
5.500%, 06/25/2037 | 32,000 | 37,115 | ||||||
Series 2007-55, Class PH, | ||||||||
6.000%, 06/25/2047 | 562,168 | 650,795 | ||||||
Series 2007-57, Class FA, | ||||||||
1M US L + 0.23%, 06/25/2037(a) | 40,843 | 40,848 | ||||||
Series 2007-6, Class FC, | ||||||||
1M US L + 0.42%, 02/25/2037(a) | 54,427 | 54,745 | ||||||
Series 2007-63, Class FC, | ||||||||
1M US L + 0.35%, 07/25/2037(a) | 23,013 | 23,085 | ||||||
Series 2007-65, Class ZE, | ||||||||
5.500%, 07/25/2037 | 208,374 | 227,894 |
61 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 2007-65, Class KF, | ||||||||
1M US L + 0.38%, 07/25/2037(a) | $ | 67,534 | $ | 66,292 | ||||
Series 2007-70, Class FA, | ||||||||
1M US L + 0.35%, 07/25/2037(a) | 44,231 | 43,284 | ||||||
Series 2007-85, Class FL, | ||||||||
1M US L + 0.54%, 09/25/2037(a) | 58,090 | 59,009 | ||||||
Series 2007-85, Class FC, | ||||||||
1M US L + 0.54%, 09/25/2037(a) | 158,094 | 159,671 | ||||||
Series 2007-86, Class FA, | ||||||||
1M US L + 0.45%, 09/25/2037(a) | 53,966 | 54,411 | ||||||
Series 2007-9, Class FB, | ||||||||
1M US L + 0.35%, 03/25/2037(a) | 35,510 | 34,936 | ||||||
Series 2008-18, Class FA, | ||||||||
1M US L + 0.90%, 03/25/2038(a) | 201,162 | 200,453 | ||||||
Series 2008-24, Class WD, | ||||||||
5.500%, 02/25/2038 | 79,989 | 96,592 | ||||||
Series 2008-25, Class EF, | ||||||||
1M US L + 0.95%, 04/25/2038(a) | 75,968 | 77,891 | ||||||
Series 2008-46, Class LA, | ||||||||
5.500%, 06/25/2038 | 18,407 | 20,653 | ||||||
Series 2008-66, Class FT, | ||||||||
1M US L + 0.95%, 08/25/2038(a) | 41,569 | 42,563 | ||||||
Series 2008-86, Class FC, | ||||||||
1M US L + 1.10%, 12/25/2038(a) | 349,451 | 360,575 | ||||||
Series 2009-10, Class AB, | ||||||||
5.000%, 03/25/2024 | 103,370 | 107,412 | ||||||
Series 2009-103, Class FM, | ||||||||
1M US L + 0.70%, 11/25/2039(a) | 78,741 | 79,806 | ||||||
Series 2009-104, Class FA, | ||||||||
1M US L + 0.80%, 12/25/2039(a) | 65,808 | 64,196 | ||||||
Series 2009-11, Class MP, | ||||||||
7.000%, 03/25/2049 | 202,575 | 240,928 | ||||||
Series 2009-110, Class FG, | ||||||||
1M US L + 0.75%, 01/25/2040(a) | 182,267 | 185,484 | ||||||
Series 2009-111, Class CY, | ||||||||
5.000%, 03/25/2038 | 133,000 | 150,905 | ||||||
Series 2009-3, Class JK, | ||||||||
5.000%, 01/25/2049 | 15,319 | 15,370 | ||||||
Series 2009-36, Class MX, | ||||||||
5.000%, 06/25/2039 | 58,000 | 69,654 | ||||||
Series 2009-47, Class BN, | ||||||||
4.500%, 07/25/2039 | 65,786 | 72,242 |
Principal Amount | Value (Note 2) | |||||||
Series 2009-62, Class WA, | ||||||||
5.571%, 08/25/2039(a) | $ | 111,546 | $ | 125,309 | ||||
Series 2009-68, Class FD, | ||||||||
1M US L + 1.25%, 09/25/2039 | 78,498 | 81,420 | ||||||
Series 2009-70, Class CO, | ||||||||
–%, 01/25/2037(b) | 123,991 | 112,962 | ||||||
Series 2009-70, Class FA, | ||||||||
1M US L + 1.20%, 09/25/2039(a) | 40,303 | 40,748 | ||||||
Series 2009-86, Class OT, | ||||||||
–%, 10/25/2037(b) | 55,438 | 50,290 | ||||||
Series 2009-87, Class FG, | ||||||||
1M US L + 0.75%, 11/25/2039(a) | 70,818 | 71,878 | ||||||
Series 2009-90, Class UZ, | ||||||||
4.500%, 11/25/2039 | 573,643 | 685,357 | ||||||
Series 2010-1, Class WA, | ||||||||
6.204%, 02/25/2040(a) | 34,636 | 39,540 | ||||||
Series 2010-102, Class HA, | ||||||||
4.000%, 09/25/2050 | 75,938 | 82,992 | ||||||
Series 2010-103, Class PJ, | ||||||||
4.500%, 09/25/2040 | 50,000 | 56,439 | ||||||
Series 2010-103, Class DZ, | ||||||||
4.500%, 09/25/2040 | 192,610 | 240,597 | ||||||
Series 2010-111, Class FC, | ||||||||
1M US L + 0.52%, 10/25/2040(a) | 74,958 | 73,981 | ||||||
Series 2010-118, Class GF, | ||||||||
1M US L + 0.55%, 10/25/2039(a) | 107,194 | 107,738 | ||||||
Series 2010-118, Class LZ, | ||||||||
4.750%, 10/25/2040 | 59,962 | 67,859 | ||||||
Series 2010-122, Class JA, | ||||||||
7.000%, 07/25/2040 | 54,388 | 61,177 | ||||||
Series 2010-123, Class FL, | ||||||||
1M US L + 0.43%, 11/25/2040(a) | 36,801 | 37,056 | ||||||
Series 2010-123, Class KU, | ||||||||
4.500%, 11/25/2040 | 228,503 | 258,840 | ||||||
Series 2010-129, Class PZ, | ||||||||
4.500%, 11/25/2040 | 102,660 | 112,715 | ||||||
Series 2010-137, Class XP, | ||||||||
4.500%, 10/25/2040 | 99,779 | 101,651 | ||||||
Series 2010-14, Class FJ, | ||||||||
1M US L + 0.60%, 03/25/2040(a) | 80,746 | 81,440 | ||||||
Series 2010-141, Class MN, | ||||||||
4.000%, 12/25/2040 | 75,000 | 85,914 | ||||||
Series 2010-141, Class FB, | ||||||||
1M US L + 0.47%, 12/25/2040(a) | 68,992 | 69,688 | ||||||
Series 2010-141, Class AL, | ||||||||
4.000%, 12/25/2040 | 87,680 | 92,170 |
62 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 2010-142, Class FM, | ||||||||
1M US L + 0.47%, 12/25/2040(a) | $ | 27,049 | $ | 27,330 | ||||
Series 2010-158, Class KF, | ||||||||
1M US L + 0.50%, 04/25/2040(a) | 60,524 | 60,741 | ||||||
Series 2010-16, Class PL, | ||||||||
5.000%, 03/25/2040 | 71,000 | 87,804 | ||||||
Series 2010-37, Class CY, | ||||||||
5.000%, 04/25/2040 | 64,321 | 73,557 | ||||||
Series 2010-38, Class KD, | ||||||||
4.500%, 09/25/2039 | 32,929 | 33,764 | ||||||
Series 2010-39, Class EF, | ||||||||
1M US L + 0.52%, 06/25/2037(a) | 65,732 | 66,458 | ||||||
Series 2010-45, Class WD, | ||||||||
5.000%, 05/25/2040 | 173,000 | 215,699 | ||||||
Series 2010-54, Class LX, | ||||||||
5.000%, 06/25/2040 | 272,000 | 310,009 | ||||||
Series 2010-58, Class FY, | ||||||||
1M US L + 0.73%, 06/25/2040(a) | 74,133 | 75,314 | ||||||
Series 2010-64, Class DM, | ||||||||
5.000%, 06/25/2040 | 83,203 | 93,905 | ||||||
Series 2010-67, Class BD, | ||||||||
4.500%, 06/25/2040 | 605,356 | 688,748 | ||||||
Series 2010-68, Class WB, | ||||||||
4.500%, 07/25/2040 | 45,000 | 54,460 | ||||||
Series 2010-68, Class DA, | ||||||||
4.500%, 10/25/2037 | 80,802 | 81,353 | ||||||
Series 2010-72, Class NK, | ||||||||
4.000%, 11/25/2039 | 6,178 | 6,210 | ||||||
Series 2010-82, Class WZ, | ||||||||
5.000%, 08/25/2040 | 333,537 | 412,610 | ||||||
Series 2010-9, Class ME, | ||||||||
5.000%, 02/25/2040 | 1,167,000 | 1,390,125 | ||||||
Series 2011-104, Class KH, | ||||||||
2.000%, 03/25/2039 | 11,876 | 12,022 | ||||||
Series 2011-114, Class B, | ||||||||
3.500%, 11/25/2041 | 360,597 | 390,769 | ||||||
Series 2011-121, Class JP, | ||||||||
4.500%, 12/25/2041 | 199,579 | 210,047 | ||||||
Series 2011-130, Class KB, | ||||||||
4.000%, 12/25/2041 | 97,823 | 106,815 | ||||||
Series 2011-132, Class PE, | ||||||||
4.500%, 12/25/2041 | 59,775 | 66,202 | ||||||
Series 2011-145, Class JA, | ||||||||
4.500%, 12/25/2041 | 60,001 | 63,236 | ||||||
Series 2011-15, Class AF, | ||||||||
1M US L + 0.51%, 03/25/2041(a) | 39,350 | 39,727 | ||||||
Series 2011-17, Class PD, | ||||||||
4.000%, 03/25/2041 | 25,559 | 26,752 | ||||||
Series 2011-22, Class MA, | ||||||||
6.500%, 04/25/2038 | 129,361 | 130,745 |
Principal Amount | Value (Note 2) | |||||||
Series 2011-26, Class PA, | ||||||||
4.500%, 04/25/2041 | $ | 180,923 | $ | 201,501 | ||||
Series 2011-27, Class ZD, | ||||||||
2.500%, 09/25/2040 | 154,989 | 163,805 | ||||||
Series 2011-3, Class FA, | ||||||||
1M US L + 0.68%, 02/25/2041(a) | 301,392 | 298,276 | ||||||
Series 2011-43, Class B, | ||||||||
3.500%, 05/25/2031 | 41,782 | 45,583 | ||||||
Series 2011-45, Class ZA, | ||||||||
4.000%, 05/25/2031 | 37,995 | 41,396 | ||||||
Series 2011-47, Class GF, | ||||||||
1M US L + 0.57%, 06/25/2041(a) | 151,031 | 149,176 | ||||||
Series 2011-5, Class PO, | ||||||||
–%, 09/25/2040(b) | 18,109 | 15,342 | ||||||
Series 2011-55, Class BZ, | ||||||||
3.500%, 06/25/2041 | 300,180 | 332,782 | ||||||
Series 2011-75, Class HP, | ||||||||
2.500%, 07/25/2040 | 41,215 | 41,911 | ||||||
Series 2011-86, Class NF, | ||||||||
1M US L + 0.55%, 09/25/2041(a) | 43,286 | 43,821 | ||||||
Series 2011-86, Class AF, | ||||||||
1M US L + 0.50%, 02/25/2040(a) | 64,997 | 64,807 | ||||||
Series 2011-93, Class ST, | ||||||||
4.000%, 09/25/2041 | 36,295 | 39,829 | ||||||
Series 2011-93, Class GA, | ||||||||
4.000%, 04/25/2039 | 46,326 | 48,840 | ||||||
Series 2011-96, Class PA, | ||||||||
2.500%, 03/25/2040 | 187,934 | 189,104 | ||||||
Series 2012-100, Class DB, | ||||||||
3.000%, 09/25/2042 | 150,000 | 161,207 | ||||||
Series 2012-120, Class AH, | ||||||||
2.500%, 02/25/2032 | 96,928 | 99,937 | ||||||
Series 2012-128, Class NP, | ||||||||
2.500%, 11/25/2042 | 24,061 | 24,012 | ||||||
Series 2012-129, Class HT, | ||||||||
2.000%, 12/25/2032 | 81,672 | 80,334 | ||||||
Series 2012-13, Class JP, | ||||||||
4.500%, 02/25/2042 | 1,176,747 | 1,246,272 | ||||||
Series 2012-131, Class FG, | ||||||||
1M US L + 0.35%, 09/25/2042(a) | 29,266 | 28,532 | ||||||
Series 2012-137, Class CF, | ||||||||
1M US L + 0.30%, 08/25/2041(a) | 76,322 | 76,156 | ||||||
Series 2012-139, Class GB, | ||||||||
2.500%, 12/25/2042 | 210,538 | 210,825 | ||||||
Series 2012-14, Class FL, | ||||||||
1M US L + 0.45%, 12/25/2040(a) | 17,503 | 17,558 | ||||||
Series 2012-14, Class MH, | ||||||||
2.000%, 12/25/2040 | 65,587 | 66,625 |
63 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 2012-144, Class JT, | ||||||||
2.500%, 06/25/2042 | $ | 19,087 | $ | 18,703 | ||||
Series 2012-149, Class DA, | ||||||||
1.750%, 01/25/2043 | 54,608 | 55,566 | ||||||
Series 2012-149, Class KB, | ||||||||
3.000%, 01/25/2043 | 144,000 | 151,908 | ||||||
Series 2012-152, Class PB, | ||||||||
3.500%, 01/25/2043 | 55,000 | 60,263 | ||||||
Series 2012-33, Class F, | ||||||||
1M US L + 0.52%, 04/25/2042(a) | 62,287 | 61,382 | ||||||
Series 2012-37, Class BF, | ||||||||
1M US L + 0.50%, 12/25/2035(a) | 48,415 | 48,922 | ||||||
Series 2012-46, Class YB, | ||||||||
3.500%, 05/25/2042 | 100,000 | 103,436 | ||||||
Series 2012-47, Class HF, | ||||||||
1M US L + 0.40%, 05/25/2027(a) | 118,707 | 118,356 | ||||||
Series 2012-49, Class TG, | ||||||||
2.000%, 07/25/2041 | 211,156 | 216,829 | ||||||
Series 2012-50, Class HC, | ||||||||
2.000%, 03/25/2042 | 119,907 | 122,328 | ||||||
Series 2012-56, Class UB, | ||||||||
4.000%, 06/25/2042 | 416,000 | 463,211 | ||||||
Series 2012-70, Class WC, | ||||||||
3.000%, 07/25/2042 | 122,000 | 128,218 | ||||||
Series 2012-80, Class GZ, | ||||||||
3.000%, 08/25/2042 | 553,613 | 587,458 | ||||||
Series 2012-82, Class E, | ||||||||
2.000%, 04/25/2042 | 74,656 | 77,104 | ||||||
Series 2012-83, Class LD, | ||||||||
2.000%, 04/25/2041 | 284,568 | 290,236 | ||||||
Series 2012-83, Class AC, | ||||||||
3.000%, 08/25/2042 | 50,000 | 52,029 | ||||||
Series 2012-94, Class KF, | ||||||||
1M US L + 0.35%, 05/25/2038(a) | 39,564 | 39,621 | ||||||
Series 2012-96, Class CB, | ||||||||
1.500%, 04/25/2039 | 14,195 | 13,894 | ||||||
Series 2012-99, Class LA, | ||||||||
3.500%, 06/25/2042 | 991,535 | 1,010,667 | ||||||
Series 2013-100, Class DH, | ||||||||
3.000%, 09/25/2031 | 125,213 | 127,908 | ||||||
Series 2013-101, Class JA, | ||||||||
4.000%, 09/25/2043 | 20,998 | 21,299 | ||||||
Series 2013-104, Class CY, | ||||||||
5.000%, 10/25/2043 | 50,000 | 61,290 | ||||||
Series 2013-108, Class GU, | ||||||||
3.000%, 10/25/2033 | 55,000 | 59,238 | ||||||
Series 2013-114, Class LM, | ||||||||
4.000%, 03/25/2042 | 300,000 | 335,105 | ||||||
Series 2013-129, Class WL, | ||||||||
2.000%, 12/25/2027 | 25,350 | 25,780 | ||||||
Series 2013-13, Class WA, | ||||||||
2.500%, 07/25/2042 | 122,629 | 120,550 | ||||||
Principal Amount | Value (Note 2) | |||||||
Series 2013-130, Class FB, | ||||||||
1M US L + 0.45%, 01/25/2044(a) | $ | 79,870 | $ | 80,355 | ||||
Series 2013-136, Class QB, | ||||||||
3.500%, 03/25/2042 | 300,000 | 322,540 | ||||||
Series 2013-17, Class YM, | ||||||||
4.000%, 03/25/2033 | 27,561 | 30,498 | ||||||
Series 2013-2, Class QF, | ||||||||
1M US L + 0.50%, 02/25/2043(a) | 28,209 | 28,310 | ||||||
Series 2013-35, Class CV, | ||||||||
3.000%, 02/25/2043 | 100,000 | 110,083 | ||||||
Series 2013-40, Class KD, | ||||||||
1.750%, 04/25/2042 | 68,616 | 68,175 | ||||||
Series 2013-52, Class GM, | ||||||||
5.000%, 06/25/2043 | 89,000 | 101,510 | ||||||
Series 2013-53, Class CV, | ||||||||
3.500%, 05/25/2030 | 100,953 | 105,709 | ||||||
Series 2013-56, Class HB, | ||||||||
2.500%, 06/25/2043 | 40,000 | 39,600 | ||||||
Series 2013-6, Class KJ, | ||||||||
3.000%, 02/25/2043 | 1,181 | 1,180 | ||||||
Series 2013-68, Class P, | ||||||||
3.500%, 10/25/2042 | 272,516 | 280,019 | ||||||
Series 2013-72, Class YA, | ||||||||
3.000%, 06/25/2033 | 46,846 | 46,850 | ||||||
Series 2013-72, Class AF, | ||||||||
1M US L + 0.25%, 11/25/2042(a) | 21,892 | 21,905 | ||||||
Series 2013-9, Class CB, | ||||||||
5.500%, 04/25/2042 | 20,968 | 24,187 | ||||||
Series 2014-12, Class GV, | ||||||||
3.500%, 03/25/2027 | 135,406 | 141,484 | ||||||
Series 2014-21, Class MA, | ||||||||
2.000%, 09/25/2041 | 207,414 | 214,242 | ||||||
Series 2014-26, Class YW, | ||||||||
3.500%, 04/25/2044 | 50,538 | 56,736 | ||||||
Series 2014-3, Class BM, | ||||||||
2.500%, 06/25/2043 | 50,000 | 52,654 | ||||||
Series 2014-49, Class CA, | ||||||||
3.000%, 08/25/2044 | 185,189 | 196,084 | ||||||
Series 2014-73, Class FA, | ||||||||
1M US L + 0.35%, 11/25/2044(a) | 29,472 | 28,844 | ||||||
Series 2014-81, Class GC, | ||||||||
3.000%, 03/25/2038 | 104,771 | 108,433 | ||||||
Series 2014-81, Class TM, | ||||||||
2.500%, 04/25/2041 | 148,585 | 150,526 | ||||||
Series 2014-88, Class ER, | ||||||||
2.500%, 02/25/2036 | 56,821 | 59,175 | ||||||
Series 2015-72, Class PC, | ||||||||
3.000%, 10/25/2043 | 34,978 | 35,060 | ||||||
Series 2015-94, Class EP, | ||||||||
3.000%, 07/25/2043 | 417,238 | 422,947 | ||||||
Series 2016-27, Class HK, | ||||||||
3.000%, 01/25/2041 | 466,696 | 507,359 |
64 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 2016-33, Class LE, | ||||||||
2.500%, 11/25/2033 | $ | 77,188 | $ | 81,340 | ||||
Series 2016-48, Class UF, | ||||||||
1M US L + 0.40%, 08/25/2046(a) | 108,160 | 106,014 | ||||||
Series 2016-6, Class YA, | ||||||||
3.000%, 12/25/2045 | 70,293 | 70,568 | ||||||
Series 2016-75, Class FC, | ||||||||
1M US L + 0.40%, 10/25/2046(a) | 45,982 | 45,169 | ||||||
Series 2016-8, Class CB, | ||||||||
3.500%, 03/25/2046 | 525,000 | 597,301 | ||||||
Series 2016-85, Class BA, | ||||||||
2.500%, 11/25/2046 | 44,942 | 44,575 | ||||||
Series 2016-9, Class D, | ||||||||
3.000%, 03/25/2046 | 65,440 | 70,090 | ||||||
Series 2016-91, Class CK, | ||||||||
3.000%, 12/25/2046 | 122,989 | 123,899 | ||||||
Series 2017-1, Class AP, | ||||||||
3.500%, 05/25/2043 | 313,294 | 317,112 | ||||||
Series 2017-10, Class FA, | ||||||||
1M US L + 0.40%, 03/25/2047(a) | 50,282 | 50,544 | ||||||
Series 2017-15, Class PE, | ||||||||
3.500%, 04/25/2046 | 84,732 | 89,195 | ||||||
Series 2017-15, Class MA, | ||||||||
3.000%, 02/25/2042 | 295,891 | 298,469 | ||||||
Series 2017-16, Class JA, | ||||||||
3.000%, 02/25/2043 | 102,370 | 103,356 | ||||||
Series 2017-35, Class AH, | ||||||||
3.500%, 04/25/2053 | 54,763 | 56,476 | ||||||
Series 2017-38, Class JA, | ||||||||
3.000%, 03/25/2047 | 320,518 | 335,416 | ||||||
Series 2017-4, Class CA, | ||||||||
3.500%, 06/25/2042 | 396,605 | 399,770 | ||||||
Series 2017-4, Class AH, | ||||||||
3.000%, 05/25/2041 | 123,233 | 124,551 | ||||||
Series 2017-40, Class GL, | ||||||||
3.500%, 03/25/2043 | 46,600 | 46,962 | ||||||
Series 2017-46, Class AB, | ||||||||
3.500%, 07/25/2049 | 112,212 | 114,746 | ||||||
Series 2017-56, Class BA, | ||||||||
3.000%, 03/25/2045 | 222,206 | 229,744 | ||||||
Series 2017-59, Class DC, | ||||||||
3.500%, 05/25/2044 | 114,356 | 117,356 | ||||||
Series 2017-9, Class GB, | ||||||||
3.000%, 05/25/2039 | 16,004 | 15,999 | ||||||
Series 2018-16, Class HA, | ||||||||
3.000%, 07/25/2043 | 144,133 | 146,099 | ||||||
Series 2018-38, Class PA, | ||||||||
3.500%, 06/25/2047 | 61,140 | 64,019 | ||||||
Series 2018-39, Class FG, | ||||||||
1M US L + 0.25%, 11/25/2033(a) | 182,344 | 182,200 | ||||||
Series 2018-41, Class PZ, | ||||||||
4.000%, 06/25/2048 | 860,128 | 1,024,378 |
Principal Amount | Value (Note 2) | |||||||
Series 2018-43, Class FE, | ||||||||
1M US L + 0.25%, 09/25/2038(a) | $ | 65,391 | $ | 63,871 | ||||
Series 2018-45, Class GA, | ||||||||
3.000%, 06/25/2048 | 129,052 | 134,572 | ||||||
Series 2018-45, Class DA, | ||||||||
3.500%, 06/25/2042 | 645,438 | 645,260 | ||||||
Series 2018-56, Class CH, | ||||||||
3.000%, 08/25/2048 | 100,245 | 104,971 | ||||||
Series 2018-60, Class KL, | ||||||||
4.000%, 08/25/2048 | 96,000 | 111,751 | ||||||
Series 2018-83, Class LH, | ||||||||
4.000%, 11/25/2048 | 76,265 | 79,756 | ||||||
Series 2018-84, Class DA, | ||||||||
3.500%, 10/25/2043 | 273,784 | 275,605 | ||||||
Series 2018-94, Class KD, | ||||||||
3.500%, 12/25/2048 | 91,961 | 96,895 | ||||||
Series 2019-10, Class MA, | ||||||||
3.000%, 03/25/2049 | 277,520 | 290,291 | ||||||
Series 2019-13, Class MH, | ||||||||
3.000%, 03/25/2049 | 1,169,838 | 1,215,926 | ||||||
Series 2019-55, Class MQ, | ||||||||
3.500%, 10/25/2049 | 2,516,652 | 2,625,783 | ||||||
Series 2019-60, Class BF, | ||||||||
1M US L + 0.45%, 10/25/2049(a) | 47,771 | 47,991 | ||||||
Series 2019-65, Class HA, | ||||||||
2.500%, 11/25/2049 | 469,666 | 484,084 | ||||||
45,659,673 | ||||||||
Freddie Mac | ||||||||
Series 1994-1665, Class KZ, | ||||||||
6.500%, 01/15/2024 | 6,923 | 7,421 | ||||||
Series 1996-1863, Class Z, | ||||||||
6.500%, 07/15/2026 | 15,359 | 16,391 | ||||||
Series 1997-1935, Class FK, | ||||||||
1M US L + 0.70%, 02/15/2027(a) | 20,797 | 20,944 | ||||||
Series 1997-1980, Class Z, | ||||||||
7.000%, 07/15/2027 | 22,877 | 26,170 | ||||||
Series 1998-2034, Class Z, | ||||||||
6.500%, 02/15/2028 | 27,194 | 30,041 | ||||||
Series 1998-2035, Class PC, | ||||||||
6.950%, 03/15/2028 | 8,296 | 9,412 | ||||||
Series 1998-2053, Class Z, | ||||||||
6.500%, 04/15/2028 | 27,623 | 31,008 | ||||||
Series 1998-2060, Class Z, | ||||||||
6.500%, 05/15/2028 | 15,575 | 17,768 | ||||||
Series 1998-2079, Class FA, | ||||||||
1M US L + 0.50%, 07/17/2028(a) | 8,020 | 8,034 | ||||||
Series 1998-2095, Class PE, | ||||||||
6.000%, 11/15/2028 | 29,127 | 32,922 | ||||||
Series 1998-2102, Class Z, | ||||||||
6.000%, 12/15/2028 | 62,821 | 71,090 |
65 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 1999-2115, Class FB, | ||||||||
1M US L + 0.45%, 01/15/2029(a) | $ | 54,758 | $ | 54,864 | ||||
Series 1999-2126, Class CB, | ||||||||
6.250%, 02/15/2029 | 42,837 | 47,852 | ||||||
Series 1999-2137, Class TH, | ||||||||
6.500%, 03/15/2029 | 10,009 | 11,449 | ||||||
Series 1999-2154, Class PL, | ||||||||
6.500%, 05/15/2029 | 46,087 | 53,077 | ||||||
Series 2000-2224, Class CB, | ||||||||
8.000%, 03/15/2030 | 8,483 | 10,227 | ||||||
Series 2001-2274, Class ZM, | ||||||||
6.500%, 01/15/2031 | 17,699 | 19,869 | ||||||
Series 2001-2279, Class Z, | ||||||||
6.000%, 01/15/2031 | 20,073 | 22,304 | ||||||
Series 2001-2320, Class FI, | ||||||||
1M US L + 0.50%, 09/15/2029(a) | 51,120 | 51,320 | ||||||
Series 2001-2322, Class FV, | ||||||||
1M US L + 0.50%, 06/15/2030(a) | 39,581 | 39,019 | ||||||
Series 2001-2324, Class PZ, | ||||||||
6.500%, 06/15/2031 | 189,271 | 223,984 | ||||||
Series 2001-2334, Class KB, | ||||||||
6.500%, 05/15/2028 | 146,665 | 165,844 | ||||||
Series 2001-2341, Class FP, | ||||||||
1M US L + 0.90%, 07/15/2031(a) | 49,402 | 50,276 | ||||||
Series 2001-2367, Class FA, | ||||||||
1M US L + 0.525%, 06/15/2031(a) | 45,796 | 46,037 | ||||||
Series 2001-2372, Class F, | ||||||||
1M US L + 0.50%, 10/15/2031(a) | 39,318 | 39,457 | ||||||
Series 2001-2388, Class FR, | ||||||||
1M US L + 0.65%, 06/15/2031(a) | 30,470 | 30,753 | ||||||
Series 2001-2388, Class FB, | ||||||||
1M US L + 0.60%, 01/15/2029(a) | 35,934 | 36,167 | ||||||
Series 2001-2391, Class HF, | ||||||||
1M US L + 0.55%, 06/15/2031(a) | 15,715 | 15,810 | ||||||
Series 2001-2396, Class FM, | ||||||||
1M US L + 0.45%, 12/15/2031(a) | 70,631 | 70,767 | ||||||
Series 2001-2396, Class FN, | ||||||||
1M US L + 0.65%, 12/15/2031(a) | 156,040 | 158,229 | ||||||
Series 2002-2411, Class F, | ||||||||
1M US L + 0.55%, 02/15/2032(a) | 38,990 | 38,986 | ||||||
Series 2002-2412, Class OF, | ||||||||
1M US L + 0.95%, 12/15/2031(a) | 49,983 | 50,627 |
Principal Amount | Value (Note 2) | |||||||
Series 2002-2417, Class FY, | ||||||||
1M US L + 0.60%, 12/15/2031(a) | $ | 15,576 | $ | 15,318 | ||||
Series 2002-2424, Class FY, | ||||||||
1M US L + 0.45%, 03/15/2032(a) | 77,192 | 77,409 | ||||||
Series 2002-2430, Class WF, | ||||||||
6.500%, 03/15/2032 | 14,243 | 16,931 | ||||||
Series 2002-2433, Class FA, | ||||||||
1M US L + 0.95%, 02/15/2032(a) | 58,306 | 59,558 | ||||||
Series 2002-2460, Class FA, | ||||||||
1M US L + 1.00%, 03/15/2032(a) | 104,933 | 107,171 | ||||||
Series 2002-2466, Class FV, | ||||||||
1M US L + 0.55%, 03/15/2032(a) | 99,257 | 99,890 | ||||||
Series 2002-2470, Class EF, | ||||||||
1M US L + 1.00%, 03/15/2032(a) | 112,493 | 114,892 | ||||||
Series 2002-2478, Class FD, | ||||||||
1M US L + 1.00%, 02/15/2032(a) | 32,093 | 32,781 | ||||||
Series 2002-2481, Class FE, | ||||||||
1M US L + 1.00%, 03/15/2032(a) | 31,787 | 32,464 | ||||||
Series 2002-2488, Class FU, | ||||||||
1M US L + 0.60%, 03/15/2032(a) | 95,461 | 94,887 | ||||||
Series 2002-2494, Class F, | ||||||||
1M US L + 1.05%, 06/15/2031(a) | 60,838 | 62,178 | ||||||
Series 2002-2495, Class ZB, | ||||||||
4.500%, 09/15/2032 | 56,323 | 62,394 | ||||||
Series 2002-2510, Class FE, | ||||||||
1M US L + 0.40%, 10/15/2032(a) | 55,276 | 55,314 | ||||||
Series 2002-2513, Class AF, | ||||||||
1M US L + 1.00%, 02/15/2032(a) | 70,316 | 71,825 | ||||||
Series 2002-2516, Class FD, | ||||||||
1M US L + 1.00%, 02/15/2032(a) | 81,522 | 83,271 | ||||||
Series 2002-2517, Class FR, | ||||||||
1M US L + 0.35%, 10/15/2032(a) | 21,594 | 21,586 | ||||||
Series 2002-2524, Class DH, | ||||||||
6.000%, 11/15/2032 | 27,000 | 32,341 | ||||||
Series 2002-2535, Class AW, | ||||||||
5.500%, 12/15/2032 | 18,609 | 21,168 | ||||||
Series 2002-2538, Class F, | ||||||||
1M US L + 0.60%, 12/15/2032(a) | 243,313 | 246,553 | ||||||
Series 2002-2541, Class BL, | ||||||||
5.500%, 12/15/2032 | 70,000 | 79,685 |
66 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 2003-2554, Class MN, | ||||||||
5.500%, 01/15/2033 | $ | 78,400 | $ | 88,543 | ||||
Series 2003-2557, Class HL, | ||||||||
5.300%, 01/15/2033 | 160,010 | 180,681 | ||||||
Series 2003-2557, Class NU, | ||||||||
5.250%, 03/15/2032 | 83,350 | 94,462 | ||||||
Series 2003-2557, Class WF, | ||||||||
1M US L + 0.40%, 01/15/2033(a) | 47,947 | 48,012 | ||||||
Series 2003-2568, Class D, | ||||||||
5.500%, 02/15/2033 | 51,027 | 55,231 | ||||||
Series 2003-2571, Class FY, | ||||||||
1M US L + 0.75%, 12/15/2032(a) | 34,693 | 35,281 | ||||||
Series 2003-2587, Class FW, | ||||||||
1M US L + 0.47%, 03/15/2033(a) | 91,695 | 92,047 | ||||||
Series 2003-2590, Class OZ, | ||||||||
4.000%, 03/15/2033 | 232,083 | 260,638 | ||||||
Series 2003-2590, Class QY, | ||||||||
3.750%, 04/15/2028 | 21,672 | 22,628 | ||||||
Series 2003-2614, Class FV, | ||||||||
1M US L + 1.50%, 05/15/2033(a) | 372,600 | 384,609 | ||||||
Series 2003-2624, Class QH, | ||||||||
5.000%, 06/15/2033 | 22,565 | 25,405 | ||||||
Series 2003-2626, Class ZX, | ||||||||
5.000%, 06/15/2033 | 179,296 | 221,343 | ||||||
Series 2003-2627, Class CN, | ||||||||
5.000%, 06/15/2033 | 61,081 | 68,811 | ||||||
Series 2003-2631, Class DB, | ||||||||
5.000%, 06/15/2033 | 108,000 | 128,135 | ||||||
Series 2003-2647, Class A, | ||||||||
3.250%, 04/15/2032 | 106,745 | 114,237 | ||||||
Series 2003-2648, Class WZ, | ||||||||
5.000%, 07/15/2033 | 236,483 | 285,776 | ||||||
Series 2003-2668, Class LH, | ||||||||
5.000%, 09/15/2033 | 29,781 | 33,679 | ||||||
Series 2003-2707, Class FH, | ||||||||
1M US L + 0.65%, 04/15/2032(a) | 60,630 | 61,300 | ||||||
Series 2003-2717, Class LH, | ||||||||
5.500%, 12/15/2033 | 9,428 | 10,738 | ||||||
Series 2003-2725, Class TA, | ||||||||
4.500%, 12/15/2033 | 97,000 | 113,063 | ||||||
Series 2004-2750, Class TC, | ||||||||
5.250%, 02/15/2034 | 16,193 | 17,802 | ||||||
Series 2004-2768, Class PW, | ||||||||
4.250%, 03/15/2034 | 208,166 | 226,731 | ||||||
Series 2004-2802, Class OH, | ||||||||
6.000%, 05/15/2034 | 38,920 | 43,625 | ||||||
Series 2004-2835, Class KZ, | ||||||||
5.500%, 08/15/2034 | 63,857 | 74,567 | ||||||
Series 2004-2893, Class PE, | ||||||||
5.000%, 11/15/2034 | 22,163 | 25,309 |
Principal Amount | Value (Note 2) | |||||||
Series 2004-2901, Class KB, | ||||||||
5.000%, 12/15/2034 | $ | 61,597 | $ | 68,831 | ||||
Series 2005-2927, Class EZ, | ||||||||
5.500%, 02/15/2035 | 56,490 | 60,945 | ||||||
Series 2005-2929, Class PG, | ||||||||
5.000%, 02/15/2035 | 44,960 | 51,218 | ||||||
Series 2005-2933, Class HD, | ||||||||
5.500%, 02/15/2035 | 57,752 | 65,092 | ||||||
Series 2005-2953, Class PG, | ||||||||
5.500%, 03/15/2035 | 31,373 | 36,786 | ||||||
Series 2005-2962, Class KF, | ||||||||
1M US L + 0.20%, 04/15/2035(a) | 27,617 | 27,601 | ||||||
Series 2005-2980, Class QA, | ||||||||
6.000%, 05/15/2035 | 61,641 | 71,429 | ||||||
Series 2005-2996, Class GX, | ||||||||
5.500%, 06/15/2035 | 72,000 | 84,747 | ||||||
Series 2005-3012, Class ZE, | ||||||||
5.750%, 08/15/2035 | 45,868 | 53,671 | ||||||
Series 2005-3028, Class ZE, | ||||||||
5.500%, 09/15/2035 | 755,899 | 864,805 | ||||||
Series 2005-3028, Class FM, | ||||||||
1M US L + 0.25%, 09/15/2035(a) | 20,787 | 20,792 | ||||||
Series 2005-3028, Class PG, | ||||||||
5.500%, 09/15/2035 | 27,715 | 31,435 | ||||||
Series 2005-3033, Class WY, | ||||||||
5.500%, 09/15/2035 | 83,024 | 94,572 | ||||||
Series 2005-3036, Class NE, | ||||||||
5.000%, 09/15/2035 | 177,886 | 204,620 | ||||||
Series 2005-3042, Class PZ, | ||||||||
5.750%, 09/15/2035 | 135,405 | 176,045 | ||||||
Series 2005-3052, Class WH, | ||||||||
5.500%, 10/15/2035 | 20,690 | 23,639 | ||||||
Series 2005-3059, Class ZM, | ||||||||
5.000%, 02/15/2035 | 149,751 | 169,023 | ||||||
Series 2005-3070, Class FT, | ||||||||
1M US L + 0.35%, 11/15/2035(a) | 30,237 | 30,416 | ||||||
Series 2005-3072, Class NF, | ||||||||
1M US L + 0.50%, 11/15/2035(a) | 59,913 | 59,022 | ||||||
Series 2005-3085, Class FE, | ||||||||
1M US L + 0.80%, 08/15/2035(a) | 76,839 | 78,485 | ||||||
Series 2006-3098, Class PG, | ||||||||
5.000%, 01/15/2036 | 116,538 | 133,633 | ||||||
Series 2006-3122, Class OH, | ||||||||
–%, 03/15/2036(b) | 22,872 | 21,557 | ||||||
Series 2006-3123, Class HT, | ||||||||
5.000%, 03/15/2026 | 57,543 | 61,425 | ||||||
Series 2006-3136, Class KF, | ||||||||
1M US L + 0.30%, 04/15/2036(a) | 42,644 | 42,738 | ||||||
Series 2006-3137, Class XP, | ||||||||
6.000%, 04/15/2036 | 31,776 | 37,753 |
67 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 2006-3143, Class BC, | ||||||||
5.500%, 02/15/2036 | $ | 153,462 | $ | 179,432 | ||||
Series 2006-3145, Class FN, | ||||||||
1M US L + 0.43%, 04/15/2036(a) | 20,736 | 20,881 | ||||||
Series 2006-3148, Class CY, | ||||||||
6.000%, 04/15/2036 | 30,177 | 35,142 | ||||||
Series 2006-3153, Class UG, | ||||||||
1M US L + 0.45%, 05/15/2036(a) | 34,043 | 34,379 | ||||||
Series 2006-3154, Class PN, | ||||||||
5.500%, 05/15/2036 | 102,669 | 118,154 | ||||||
Series 2006-3201, Class FL, | ||||||||
1M US L + 0.60%, 08/15/2036(a) | 137,886 | 136,235 | ||||||
Series 2006-3202, Class HF, | ||||||||
1M US L + 0.35%, 08/15/2036(a) | 70,227 | 70,583 | ||||||
Series 2006-3204, Class ZM, | ||||||||
5.000%, 08/15/2034 | 163,243 | 185,925 | ||||||
Series 2006-3206, Class FE, | ||||||||
1M US L + 0.40%, 08/15/2036(a) | 73,922 | 72,633 | ||||||
Series 2006-3236, Class EF, | ||||||||
1M US L + 0.30%, 11/15/2036(a) | 19,615 | 19,200 | ||||||
Series 2006-3237, Class CD, | ||||||||
5.500%, 09/15/2036 | 148,000 | 165,712 | ||||||
Series 2006-3237, Class CE, | ||||||||
5.500%, 11/15/2036 | 59,000 | 74,278 | ||||||
Series 2006-3249, Class CB, | ||||||||
4.250%, 12/15/2036 | 450,122 | 505,633 | ||||||
Series 2007-3262, Class FT, | ||||||||
1M US L + 0.27%, 01/15/2037(a) | 77,554 | 75,659 | ||||||
Series 2007-3279, Class FB, | ||||||||
1M US L + 0.32%, 02/15/2037(a) | 117,953 | 115,450 | ||||||
Series 2007-3284, Class AZ, | ||||||||
4.500%, 03/15/2037 | 84,085 | 90,659 | ||||||
Series 2007-3301, Class FY, | ||||||||
1M US L + 0.42%, 04/15/2037(a) | 34,879 | 35,148 | ||||||
Series 2007-3311, Class DF, | ||||||||
1M US L + 0.34%, 05/15/2037(a) | 172,574 | 173,191 | ||||||
Series 2007-3312, Class PA, | ||||||||
5.500%, 05/15/2037 | 20,342 | 23,455 | ||||||
Series 2007-3316, Class FB, | ||||||||
1M US L + 0.30%, 08/15/2035(a) | 54,489 | 53,427 | ||||||
Series 2007-3349, Class HG, | ||||||||
5.500%, 07/15/2037 | 29,488 | 34,240 | ||||||
Series 2007-3361, Class AF, | ||||||||
1M US L + 0.35%, 11/15/2036(a) | 120,004 | 117,621 |
Principal Amount | Value (Note 2) | |||||||
Series 2007-3367, Class YF, | ||||||||
1M US L + 0.55%, 09/15/2037(a) | $ | 25,586 | $ | 25,271 | ||||
Series 2007-3368, Class AF, | ||||||||
1M US L + 0.72%, 09/15/2037(a) | 98,965 | 100,493 | ||||||
Series 2007-3378, Class FA, | ||||||||
1M US L + 0.58%, 06/15/2037(a) | 48,595 | 49,202 | ||||||
Series 2007-3380, Class FM, | ||||||||
1M US L + 0.59%, 10/15/2037(a) | 33,462 | 33,880 | ||||||
Series 2007-3382, Class FL, | ||||||||
1M US L + 0.70%, 11/15/2037(a) | 145,242 | 144,692 | ||||||
Series 2007-3382, Class FG, | ||||||||
1M US L + 0.60%, 11/15/2037(a) | 53,829 | 54,574 | ||||||
Series 2007-3387, Class PF, | ||||||||
1M US L + 0.42%, 11/15/2037(a) | 44,201 | 44,537 | ||||||
Series 2007-3388, Class FJ, | ||||||||
1M US L + 0.70%, 11/15/2037(a) | 193,184 | 196,413 | ||||||
Series 2008-3404, Class DC, | ||||||||
5.500%, 01/15/2038 | 72,000 | 84,746 | ||||||
Series 2008-3405, Class PE, | ||||||||
5.000%, 01/15/2038 | 83,785 | 96,912 | ||||||
Series 2008-3409, Class DB, | ||||||||
6.000%, 01/15/2038 | 301,238 | 348,623 | ||||||
Series 2008-3411, Class FL, | ||||||||
1M US L + 0.70%, 02/15/2038(a) | 36,894 | 36,781 | ||||||
Series 2008-3415, Class PC, | ||||||||
5.000%, 12/15/2037 | 50,647 | 56,783 | ||||||
Series 2008-3415, Class TF, | ||||||||
1M US L + 0.74%, 08/15/2035(a) | 79,001 | 80,571 | ||||||
Series 2008-3415, Class DF, | ||||||||
1M US L + 0.70%, 08/15/2035(a) | 159,503 | 158,379 | ||||||
Series 2008-3469, Class CF, | ||||||||
1M US L + 0.79%, 07/15/2038(a) | 109,543 | 107,103 | ||||||
Series 2009-3536, Class FM, | ||||||||
1M US L + 1.00%, 05/15/2039(a) | 41,772 | 42,945 | ||||||
Series 2009-3539, Class B, | ||||||||
4.500%, 06/15/2029 | 44,000 | 49,420 | ||||||
Series 2009-3545, Class FA, | ||||||||
1M US L + 0.85%, 06/15/2039(a) | 141,009 | 140,494 | ||||||
Series 2009-3548, Class ZE, | ||||||||
5.500%, 12/15/2032 | 87,070 | 101,088 |
68 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 2009-3549, Class FA, | ||||||||
1M US L + 1.20%, 07/15/2039(a) | $ | 31,974 | $ | 32,351 | ||||
Series 2009-3564, Class NB, | ||||||||
5.000%, 08/15/2039 | 329,000 | 382,484 | ||||||
Series 2009-3574, Class D, | ||||||||
5.000%, 09/15/2039 | 127,215 | 145,521 | ||||||
Series 2009-3584, Class FA, | ||||||||
1M US L + 0.70%, 12/15/2036(a) | 46,586 | 47,398 | ||||||
Series 2009-3587, Class DA, | ||||||||
4.500%, 10/15/2039 | 223,721 | 245,041 | ||||||
Series 2009-3604, Class PO, | ||||||||
–%, 05/15/2036(b) | 110,362 | 100,914 | ||||||
Series 2009-3605, Class BF, | ||||||||
1M US L + 0.86%, 11/15/2039(a) | 217,973 | 223,396 | ||||||
Series 2009-3611, Class FH, | ||||||||
1M US L + 0.75%, 07/15/2034(a) | 19,947 | 20,338 | ||||||
Series 2010-3620, Class EL, | ||||||||
4.000%, 01/15/2030 | 48,737 | 52,571 | ||||||
Series 2010-3626, Class ME, | ||||||||
5.000%, 01/15/2040 | 372,000 | 436,986 | ||||||
Series 2010-3631, Class PA, | ||||||||
4.000%, 02/15/2040 | 201,288 | 221,228 | ||||||
Series 2010-3653, Class B, | ||||||||
4.500%, 04/15/2030 | 127,606 | 140,459 | ||||||
Series 2010-3662, Class PJ, | ||||||||
5.000%, 04/15/2040 | 134,075 | 153,752 | ||||||
Series 2010-3664, Class DA, | ||||||||
4.000%, 11/15/2037 | 174,581 | 184,673 | ||||||
Series 2010-3704, Class DC, | ||||||||
4.000%, 11/15/2036 | 99,350 | 102,945 | ||||||
Series 2010-3737, Class GB, | ||||||||
4.500%, 04/15/2039 | 96,489 | 100,626 | ||||||
Series 2010-3747, Class CY, | ||||||||
4.500%, 10/15/2040 | 400,000 | 461,518 | ||||||
Series 2010-3762, Class WP, | ||||||||
4.000%, 12/15/2039 | 43,536 | 46,130 | ||||||
Series 2010-3770, Class JZ, | ||||||||
4.000%, 12/15/2040 | 10,336,984 | 11,661,937 | ||||||
Series 2010-3770, Class GA, | ||||||||
4.500%, 10/15/2040 | 369,404 | 436,801 | ||||||
Series 2011-3790, Class AP, | ||||||||
4.500%, 01/15/2037 | 4,101 | 4,120 | ||||||
Series 2011-3792, Class DF, | ||||||||
1M US L + 0.40%, 11/15/2040(a) | 46,673 | 46,414 | ||||||
Series 2011-3798, Class PJ, | ||||||||
4.000%, 01/15/2041 | 97,445 | 107,032 | ||||||
Series 2011-3799, Class GK, | ||||||||
2.750%, 01/15/2021 | 32 | 32 | ||||||
Series 2011-3800, Class AF, | ||||||||
1M US L + 0.50%, 02/15/2041(a) | 33,433 | 33,783 |
Principal Amount | Value (Note 2) | |||||||
Series 2011-3819, Class ZQ, | ||||||||
6.000%, 04/15/2036 | $ | 27,170 | $ | 32,307 | ||||
Series 2011-3822, Class FY, | ||||||||
1M US L + 0.40%, 02/15/2033(a) | 25,209 | 25,382 | ||||||
Series 2011-3830, Class NB, | ||||||||
4.500%, 02/15/2039 | 98,810 | 103,425 | ||||||
Series 2011-3843, Class FE, | ||||||||
1M US L + 0.55%, 04/15/2041(a) | 75,564 | 76,526 | ||||||
Series 2011-3843, Class PZ, | ||||||||
5.000%, 04/15/2041 | 610,443 | 736,851 | ||||||
Series 2011-3852, Class QN, | ||||||||
27.21053% -1M US L%, 05/15/2041(a) | 96,369 | 104,895 | ||||||
Series 2011-3852, Class TP, | ||||||||
27.50% -1M US L%, 05/15/2041(a) | 57,625 | 63,751 | ||||||
Series 2011-3857, Class ZP, | ||||||||
5.000%, 05/15/2041 | 892,575 | 1,101,332 | ||||||
Series 2011-3891, Class BF, | ||||||||
1M US L + 0.55%, 07/15/2041(a) | 67,035 | 67,770 | ||||||
Series 2011-3905, Class BZ, | ||||||||
3.000%, 08/15/2041 | 157,929 | 173,671 | ||||||
Series 2011-3910, Class JG, | ||||||||
2.750%, 12/15/2037 | 66,511 | 67,304 | ||||||
Series 2011-3919, Class DL, | ||||||||
4.000%, 08/15/2030 | 298,000 | 339,075 | ||||||
Series 2011-3919, Class BD, | ||||||||
2.500%, 08/15/2039 | 50,169 | 50,440 | ||||||
Series 2011-3919, Class AF, | ||||||||
1M US L + 0.35%, 03/15/2030(a) | 7,659 | 7,660 | ||||||
Series 2011-3935, Class JZ, | ||||||||
4.500%, 10/15/2041 | 957,329 | 1,151,960 | ||||||
Series 2011-3939, Class BZ, | ||||||||
4.500%, 06/15/2041 | 1,211,010 | 1,283,050 | ||||||
Series 2011-3951, Class JB, | ||||||||
4.000%, 08/15/2041 | 43,590 | 44,341 | ||||||
Series 2011-3958, Class PJ, | ||||||||
4.500%, 09/15/2041 | 356,083 | 371,815 | ||||||
Series 2011-3959, Class MB, | ||||||||
4.500%, 11/15/2041 | 44,199 | 55,088 | ||||||
Series 2011-3962, Class FB, | ||||||||
1M US L + 0.50%, 10/15/2039(a) | 34,805 | 34,898 | ||||||
Series 2011-3963, Class JB, | ||||||||
4.500%, 11/15/2041 | 150,000 | 167,032 | ||||||
Series 2011-3969, Class JP, | ||||||||
4.500%, 09/15/2041 | 108,984 | 116,566 | ||||||
Series 2011-3970, Class HA, | ||||||||
3.000%, 02/15/2026 | 14,576 | 14,662 | ||||||
Series 2011-3976, Class A, | ||||||||
3.500%, 08/15/2029 | 35,489 | 35,542 |
69 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 2012-3979, Class GA, | ||||||||
3.500%, 05/15/2030 | $ | 35,232 | $ | 35,748 | ||||
Series 2012-3984, Class DF, | ||||||||
1M US L + 0.55%, 01/15/2042(a) | 66,832 | 66,059 | ||||||
Series 2012-3989, Class JW, | ||||||||
3.500%, 01/15/2042 | 255,000 | 282,836 | ||||||
Series 2012-3997, Class EB, | ||||||||
3.500%, 12/15/2041 | 94,654 | 101,510 | ||||||
Series 2012-3997, Class EC, | ||||||||
3.500%, 02/15/2042 | 124,000 | 135,121 | ||||||
Series 2012-3997, Class FQ, | ||||||||
1M US L + 0.50%, 02/15/2042(a) | 73,548 | 74,157 | ||||||
Series 2012-4001, Class FM, | ||||||||
1M US L + 0.50%, 02/15/2042(a) | 48,509 | 47,745 | ||||||
Series 2012-4011, Class DB, | ||||||||
4.000%, 09/15/2041 | 251,476 | 282,601 | ||||||
Series 2012-4012, Class GC, | ||||||||
3.500%, 06/15/2040 | 46,000 | 48,663 | ||||||
Series 2012-4012, Class GJ, | ||||||||
2.500%, 06/15/2038 | 38,219 | 38,444 | ||||||
Series 2012-4012, Class NF, | ||||||||
1M US L + 0.45%, 12/15/2038(a) | 21,916 | 21,980 | ||||||
Series 2012-4020, Class PG, | ||||||||
2.500%, 03/15/2027 | 23,488 | 24,377 | ||||||
Series 2012-4037, Class CA, | ||||||||
3.000%, 04/15/2027 | 62,673 | 68,359 | ||||||
Series 2012-4039, Class LT, | ||||||||
3.500%, 05/15/2042 | 113,000 | 119,541 | ||||||
Series 2012-4050, Class ND, | ||||||||
2.500%, 09/15/2041 | 105,769 | 108,752 | ||||||
Series 2012-4062, Class MZ, | ||||||||
3.500%, 06/15/2042 | 133,809 | 140,041 | ||||||
Series 2012-4064, Class AY, | ||||||||
3.000%, 06/15/2027 | 48,000 | 52,297 | ||||||
Series 2012-4068, Class PE, | ||||||||
3.000%, 06/15/2042 | 224,000 | 244,731 | ||||||
Series 2012-4075, Class PB, | ||||||||
3.000%, 07/15/2042 | 42,000 | 46,312 | ||||||
Series 2012-4076, Class MV, | ||||||||
3.000%, 04/15/2031 | 69,000 | 73,813 | ||||||
Series 2012-4094, Class CW, | ||||||||
2.000%, 08/15/2042 | 589,476 | 609,644 | ||||||
Series 2012-4097, Class CU, | ||||||||
1.500%, 08/15/2027 | 25,000 | 24,914 | ||||||
Series 2012-4097, Class UF, | ||||||||
1M US L + 0.35%, 08/15/2032(a) | 79,661 | 79,408 | ||||||
Series 2012-4102, Class DA, | ||||||||
3.000%, 08/15/2041 | 65,200 | 64,380 | ||||||
Series 2012-4104, Class AJ, | ||||||||
1.500%, 09/15/2027 | 52,286 | 53,345 |
Principal Amount | Value (Note 2) | |||||||
Series 2012-4120, Class TC, | ||||||||
1.500%, 10/15/2027 | $ | 18,292 | $ | 18,528 | ||||
Series 2012-4122, Class BA, | ||||||||
3.060%, 05/15/2040 | 265,636 | 277,362 | ||||||
Series 2012-4141, Class PL, | ||||||||
2.500%, 12/15/2042 | 100,000 | 90,860 | ||||||
Series 2013-4160, Class HB, | ||||||||
2.500%, 12/15/2032 | 49,142 | 50,948 | ||||||
Series 2013-4170, Class FW, | ||||||||
1M US L + 0.95%, 01/15/2033(a) | 54,696 | 55,159 | ||||||
Series 2013-4176, Class YD, | ||||||||
3.000%, 03/15/2043 | 50,000 | 51,546 | ||||||
Series 2013-4185, Class PB, | ||||||||
3.000%, 03/15/2043 | 450,000 | 490,274 | ||||||
Series 2013-4203, Class DJ, | ||||||||
2.500%, 04/15/2033 | 94,893 | 96,831 | ||||||
Series 2013-4218, Class DG, | ||||||||
2.500%, 07/15/2042 | 295,153 | 306,672 | ||||||
Series 2013-4220, Class EH, | ||||||||
2.500%, 06/15/2028 | 86,411 | 89,430 | ||||||
Series 2013-4231, Class FD, | ||||||||
1M US L + 0.35%, 10/15/2032(a) | 27,155 | 26,839 | ||||||
Series 2013-4257, Class A, | ||||||||
2.500%, 10/15/2027 | 76,068 | 77,948 | ||||||
Series 2013-4259, Class MG, | ||||||||
3.000%, 08/15/2041 | 90,961 | 93,348 | ||||||
Series 2013-4265, Class FD, | ||||||||
1M US L + 0.40%, 01/15/2035(a) | 104,046 | 104,675 | ||||||
Series 2014-4293, Class NM, | ||||||||
4.500%, 06/15/2043 | 56,892 | 61,537 | ||||||
Series 2014-4294, Class PF, | ||||||||
1M US L + 0.40%, 01/15/2044(a) | 27,909 | 28,074 | ||||||
Series 2014-4301, Class U, | ||||||||
3.500%, 07/15/2032 | 146,986 | 155,290 | ||||||
Series 2014-4320, Class AP, | ||||||||
3.500%, 07/15/2039 | 215,210 | 234,076 | ||||||
Series 2014-4324, Class AY, | ||||||||
3.000%, 04/15/2029 | 568,738 | 621,219 | ||||||
Series 2014-4333, Class PB, | ||||||||
2.500%, 10/15/2043 | 66,674 | 67,899 | ||||||
Series 2014-4337, Class VJ, | ||||||||
3.500%, 06/15/2027 | 33,789 | 34,714 | ||||||
Series 2014-4374, Class NC, | ||||||||
3.750%, 02/15/2046 | 13,090 | 13,091 | ||||||
Series 2015-4459, Class CA, | ||||||||
5.000%, 12/15/2034 | 46,012 | 50,692 | ||||||
Series 2015-4491, Class B, | ||||||||
3.000%, 08/15/2040 | 435,844 | 438,337 | ||||||
Series 2016-4555, Class CP, | ||||||||
3.000%, 04/15/2045 | 1,317,750 | 1,393,481 | ||||||
Series 2016-4590, Class AK, | ||||||||
3.500%, 08/15/2027 | 92,520 | 99,130 |
70 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 2016-4594, Class JD, | ||||||||
3.000%, 12/15/2042 | $ | 31,000 | $ | 31,326 | ||||
Series 2016-4604, Class CG, | ||||||||
2.500%, 06/15/2046 | 18,222 | 17,731 | ||||||
Series 2016-4639, Class HZ, | ||||||||
3.250%, 04/15/2053(c) | 473,788 | 522,084 | ||||||
Series 2017-4734, Class A, | ||||||||
3.000%, 07/15/2042 | 203,860 | 204,903 | ||||||
Series 2018-4753, Class EP, | ||||||||
3.500%, 12/15/2047 | 884,390 | 888,107 | ||||||
Series 2018-4763, Class DN, | ||||||||
4.000%, 01/15/2043 | 290,889 | 293,191 | ||||||
Series 2018-4766, Class GD, | ||||||||
3.500%, 03/15/2044 | 15,488 | 15,721 | ||||||
Series 2018-4767, Class Z, | ||||||||
3.000%, 12/15/2047 | 33,579 | 35,154 | ||||||
Series 2018-4778, Class ED, | ||||||||
3.500%, 10/15/2042 | 62,636 | 63,021 | ||||||
Series 2018-4784, Class BP, | ||||||||
3.500%, 04/15/2048 | 80,457 | 80,589 | ||||||
Series 2018-4784, Class EA, | ||||||||
4.500%, 11/15/2042 | 116,698 | 117,285 | ||||||
Series 2018-4794, Class DC, | ||||||||
4.250%, 08/15/2044 | 38,669 | 39,024 | ||||||
Series 2018-4821, Class HA, | ||||||||
4.500%, 03/15/2043 | 154,719 | 154,807 | ||||||
Series 2018-4821, Class VA, | ||||||||
4.000%, 10/15/2029 | 125,843 | 133,536 | ||||||
Series 2018-4830, Class DA, | ||||||||
4.500%, 11/15/2044 | 150,668 | 152,168 | ||||||
Series 2018-4846, Class PA, | ||||||||
4.000%, 06/15/2047 | 66,448 | 69,106 | ||||||
Series 2018-4848, Class WA, | ||||||||
4.000%, 07/15/2044 | 549,730 | 551,924 | ||||||
Series 2019-4863, Class AJ, | ||||||||
3.500%, 07/15/2038 | 84,333 | 89,604 | ||||||
Series 2019-4868, Class A, | ||||||||
4.000%, 07/15/2044 | 23,125 | 23,117 | ||||||
Series 3588, Class CW, | ||||||||
2.540%, 10/25/2037 | 526,459 | 542,609 | ||||||
45,980,150 | ||||||||
Ginnie Mae | ||||||||
Series 2002-72, Class FB, | ||||||||
1M US L + 0.40%, 10/20/2032(a) | 56,606 | 56,528 | ||||||
Series 2003-23, Class F, | ||||||||
1M US L + 0.45%, 12/16/2029(a) | 60,227 | 60,328 | ||||||
Series 2003-25, Class FC, | ||||||||
1M US L + 0.40%, 08/26/2023(a) | 190,572 | 190,881 | ||||||
Series 2003-42, Class FE, | ||||||||
1M US L + 0.40%, 01/16/2030(a) | 36,729 | 36,750 |
Principal Amount | Value (Note 2) | |||||||
Series 2003-98, Class FY, | ||||||||
1M US L + 0.35%, 09/20/2033(a) | $ | 80,524 | $ | 80,621 | ||||
Series 2004-1, Class TE, | ||||||||
5.000%, 06/20/2033 | 43,237 | 47,387 | ||||||
Series 2004-15, Class AY, | ||||||||
5.500%, 02/20/2034 | 138,183 | 147,652 | ||||||
Series 2004-26, Class ED, | ||||||||
5.500%, 04/16/2034 | 102,010 | 113,086 | ||||||
Series 2004-34, Class QL, | ||||||||
5.500%, 05/16/2034 | 64,000 | 75,597 | ||||||
Series 2004-55, Class MC, | ||||||||
5.500%, 07/20/2034 | 54,752 | 61,037 | ||||||
Series 2004-7, Class Z, | ||||||||
5.500%, 01/16/2034 | 1,253,573 | 1,467,364 | ||||||
Series 2004-87, Class BC, | ||||||||
4.500%, 10/20/2034 | 24,606 | 26,347 | ||||||
Series 2005-11, Class PL, | ||||||||
5.000%, 02/20/2035 | 56,113 | 61,887 | ||||||
Series 2005-13, Class AE, | ||||||||
5.000%, 09/20/2034 | 11,857 | 11,943 | ||||||
Series 2005-13, Class NB, | ||||||||
5.000%, 02/20/2035 | 20,908 | 22,998 | ||||||
Series 2005-13, Class BE, | ||||||||
5.000%, 09/20/2034 | 3,209 | 3,220 | ||||||
Series 2005-13, Class BG, | ||||||||
5.000%, 02/20/2035 | 261,000 | 288,146 | ||||||
Series 2005-3, Class QB, | ||||||||
5.000%, 01/16/2035 | 174,321 | 192,275 | ||||||
Series 2005-3, Class JM, | ||||||||
4.750%, 01/20/2035 | 103,974 | 115,622 | ||||||
Series 2005-3, Class OC, | ||||||||
5.000%, 01/20/2035 | 229,000 | 251,496 | ||||||
Series 2005-3, Class JL, | ||||||||
5.000%, 12/16/2034 | 200,000 | 220,212 | ||||||
Series 2005-45, Class BF, | ||||||||
1M US L + 0.30%, 06/20/2035(a) | 60,840 | 59,348 | ||||||
Series 2005-49, Class B, | ||||||||
5.500%, 06/20/2035 | 82,940 | 92,912 | ||||||
Series 2005-51, Class DC, | ||||||||
5.000%, 07/20/2035 | 208,464 | 230,535 | ||||||
Series 2005-56, Class JA, | ||||||||
5.000%, 05/17/2035 | 25,854 | 28,996 | ||||||
Series 2005-56, Class BD, | ||||||||
5.000%, 07/20/2035 | 68,112 | 77,801 | ||||||
Series 2005-69, Class WD, | ||||||||
5.000%, 05/18/2035 | 88,016 | 95,975 | ||||||
Series 2005-73, Class PH, | ||||||||
5.000%, 09/20/2035 | 162,000 | 178,166 | ||||||
Series 2005-92, Class PB, | ||||||||
6.000%, 12/20/2035 | 66,745 | 77,749 | ||||||
Series 2006-10, Class PB, | ||||||||
5.500%, 03/20/2036 | 75,927 | 87,539 | ||||||
Series 2006-33, Class NA, | ||||||||
5.000%, 01/20/2036 | 17,279 | 17,271 |
71 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 2006-38, Class OH, | ||||||||
6.500%, 08/20/2036 | $ | 28,000 | $ | 34,746 | ||||
Series 2007-18, Class PH, | ||||||||
5.500%, 03/20/2035 | 137,000 | 162,019 | ||||||
Series 2007-18, Class B, | ||||||||
5.500%, 05/20/2035 | 103,603 | 117,287 | ||||||
Series 2007-35, Class TE, | ||||||||
6.000%, 06/20/2037 | 187,167 | 217,822 | ||||||
Series 2007-35, Class NE, | ||||||||
6.000%, 06/16/2037 | 78,223 | 91,309 | ||||||
Series 2007-40, Class FY, | ||||||||
1M US L + 0.33%, 07/16/2037(a) | 64,422 | 63,727 | ||||||
Series 2007-44, Class PH, | ||||||||
6.000%, 07/20/2037 | 139,754 | 158,678 | ||||||
Series 2007-6, Class LE, | ||||||||
5.500%, 02/20/2037 | 66,459 | 75,489 | ||||||
Series 2007-7, Class PG, | ||||||||
5.000%, 02/16/2037 | 46,301 | 51,056 | ||||||
Series 2007-79, Class FC, | ||||||||
1M US L + 0.44%, 12/20/2037(a) | 205,784 | 201,693 | ||||||
Series 2008-13, Class FB, | ||||||||
1M US L + 0.50%, 02/20/2038(a) | 42,306 | 41,586 | ||||||
Series 2008-20, Class CE, | ||||||||
5.500%, 06/16/2037 | 100,000 | 115,903 | ||||||
Series 2008-31, Class PC, | ||||||||
5.500%, 04/20/2038 | 48,865 | 54,702 | ||||||
Series 2008-33, Class PB, | ||||||||
5.500%, 04/20/2038 | 69,257 | 79,116 | ||||||
Series 2008-37, Class L, | ||||||||
6.000%, 04/20/2038 | 66,173 | 76,642 | ||||||
Series 2008-38, Class PL, | ||||||||
5.500%, 05/20/2038 | 100,129 | 112,281 | ||||||
Series 2008-38, Class PN, | ||||||||
5.500%, 05/20/2038 | 70,825 | 81,290 | ||||||
Series 2008-38, Class BG, | ||||||||
5.000%, 05/16/2038 | 62,446 | 68,368 | ||||||
Series 2008-40, Class PL, | ||||||||
5.250%, 05/16/2038 | 100,000 | 123,932 | ||||||
Series 2008-41, Class PE, | ||||||||
5.500%, 05/20/2038 | 98,439 | 110,562 | ||||||
Series 2008-47, Class ML, | ||||||||
5.250%, 06/16/2038 | 44,934 | 50,206 | ||||||
Series 2008-49, Class PB, | ||||||||
4.750%, 06/20/2038 | 49,257 | 54,651 | ||||||
Series 2008-50, Class KB, | ||||||||
6.000%, 06/20/2038 | 250,743 | 286,021 | ||||||
Series 2008-51, Class PH, | ||||||||
5.250%, 06/20/2038 | 81,913 | 92,351 | ||||||
Series 2008-51, Class FG, | ||||||||
1M US L + 0.77%, 06/16/2038(a) | 88,356 | 87,569 | ||||||
Series 2008-55, Class PL, | ||||||||
5.500%, 06/20/2038 | 45,944 | 52,127 |
Principal Amount | Value (Note 2) | |||||||
Series 2008-58, Class PE, | ||||||||
5.500%, 07/16/2038 | $ | 23,658 | $ | 27,070 | ||||
Series 2008-60, Class JN, | ||||||||
5.500%, 07/20/2038 | 164,919 | 186,524 | ||||||
Series 2008-65, Class PG, | ||||||||
6.000%, 08/20/2038 | 129,595 | 149,241 | ||||||
Series 2008-66, Class FN, | ||||||||
1M US L + 0.95%, 08/20/2038(a) | 88,855 | 90,504 | ||||||
Series 2008-7, Class PQ, | ||||||||
5.000%, 02/20/2038 | 130,000 | 143,332 | ||||||
Series 2008-76, Class QE, | ||||||||
5.750%, 09/20/2038 | 58,000 | 69,377 | ||||||
Series 2008-77, Class FC, | ||||||||
1M US L + 0.70%, 09/20/2038(a) | 83,756 | 84,722 | ||||||
Series 2008-85, Class PG, | ||||||||
5.250%, 10/20/2038 | 58,334 | 61,749 | ||||||
Series 2008-89, Class JC, | ||||||||
5.500%, 08/20/2038 | 71,121 | 79,722 | ||||||
Series 2008-89, Class JD, | ||||||||
6.000%, 08/20/2038 | 29,017 | 32,942 | ||||||
Series 2008-9, Class FA, | ||||||||
1M US L + 0.50%, 02/20/2038(a) | 29,319 | 29,511 | ||||||
Series 2009-1, Class FA, | ||||||||
1M US L + 1.05%, 01/20/2039(a) | 77,262 | 78,976 | ||||||
Series 2009-10, Class NB, | ||||||||
5.000%, 02/16/2039 | 118,677 | 131,623 | ||||||
Series 2009-10, Class PH, | ||||||||
4.500%, 02/20/2039 | 30,000 | 33,806 | ||||||
Series 2009-118, Class PY, | ||||||||
5.000%, 12/16/2039 | 39,936 | 45,569 | ||||||
Series 2009-12, Class NB, | ||||||||
5.000%, 03/20/2039 | 99,566 | 112,285 | ||||||
Series 2009-13, Class E, | ||||||||
4.500%, 03/16/2039 | 159,537 | 176,655 | ||||||
Series 2009-15, Class FM, | ||||||||
1M US L + 1.04%, 03/20/2039(a) | 102,084 | 104,054 | ||||||
Series 2009-24, Class WB, | ||||||||
5.000%, 03/20/2039 | 188,069 | 211,886 | ||||||
Series 2009-40, Class AD, | ||||||||
4.500%, 06/20/2039 | 283,000 | 329,422 | ||||||
Series 2009-47, Class LT, | ||||||||
5.000%, 06/20/2039 | 147,239 | 161,399 | ||||||
Series 2009-55, Class FN, | ||||||||
1M US L + 1.00%, 07/20/2039(a) | 42,431 | 43,278 | ||||||
Series 2009-61, Class MP, | ||||||||
5.000%, 08/20/2039 | 46,935 | 52,553 | ||||||
Series 2009-65, Class QM, | ||||||||
3.500%, 12/20/2038 | 29,234 | 30,046 | ||||||
Series 2009-69, Class PH, | ||||||||
5.500%, 08/16/2039 | 82,000 | 97,631 |
72 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 2009-76, Class PC, | ||||||||
4.000%, 03/16/2039 | $ | 20,812 | $ | 20,870 | ||||
Series 2009-76, Class JB, | ||||||||
4.500%, 07/20/2039 | 60,233 | 63,702 | ||||||
Series 2009-83, Class TF, | ||||||||
1M US L + 0.90%, 08/20/2039(a) | 54,115 | 55,165 | ||||||
Series 2009-94, Class FA, | ||||||||
1M US L + 0.70%, 10/16/2039(a) | 102,130 | 101,132 | ||||||
Series 2010-111, Class FA, | ||||||||
1M US L + 0.35%, 09/20/2040(a) | 89,259 | 87,216 | ||||||
Series 2010-130, Class PE, | ||||||||
3.500%, 08/16/2039 | 8,954 | 9,007 | ||||||
Series 2010-14, Class A, | ||||||||
4.500%, 06/16/2039 | 19,945 | 20,942 | ||||||
Series 2010-14, Class HA, | ||||||||
4.500%, 02/16/2040 | 104,328 | 116,609 | ||||||
Series 2010-157, Class OP, | ||||||||
–%, 12/20/2040(b) | 19,194 | 17,780 | ||||||
Series 2010-167, Class WL, | ||||||||
4.500%, 09/20/2040 | 305,000 | 344,222 | ||||||
Series 2010-169, Class JZ, | ||||||||
4.000%, 12/20/2040 | 609,784 | 637,154 | ||||||
Series 2010-19, Class GW, | ||||||||
4.750%, 02/20/2040 | 108,305 | 127,413 | ||||||
Series 2010-24, Class MQ, | ||||||||
4.250%, 12/20/2038 | 30 | 29 | ||||||
Series 2010-62, Class AF, | ||||||||
1M US L + 0.45%, 04/16/2034(a) | 45,730 | 45,879 | ||||||
Series 2010-76, Class NC, | ||||||||
4.500%, 06/20/2040 | 156,000 | 160,811 | ||||||
Series 2010-84, Class YB, | ||||||||
4.000%, 07/20/2040 | 30,000 | 31,901 | ||||||
Series 2010-H01, Class FA, | ||||||||
1M US L + 0.82%, 01/20/2060(a) | 59,746 | 60,272 | ||||||
Series 2010-H10, Class FC, | ||||||||
1M US L + 1.00%, 05/20/2060(a) | 202,446 | 205,262 | ||||||
Series 2010-H20, Class AF, | ||||||||
1M US L + 0.33%, 10/20/2060(a) | 288,156 | 287,774 | ||||||
Series 2010-H22, Class FE, | ||||||||
1M US L + 0.35%, 05/20/2059(a) | 15,156 | 15,150 | ||||||
Series 2010-H27, Class FA, | ||||||||
1M US L + 0.38%, 12/20/2060(a) | 72,999 | 72,989 | ||||||
Series 2011-128, Class MD, | ||||||||
4.000%, 10/20/2040 | 140,000 | 150,357 | ||||||
Series 2011-19, Class MG, | ||||||||
3.000%, 06/16/2040 | 8,388 | 8,531 |
Principal Amount | Value (Note 2) | |||||||
Series 2011-43, Class ZQ, | ||||||||
5.500%, 01/16/2033 | $ | 109,508 | $ | 118,298 | ||||
Series 2011-59, Class QC, | ||||||||
4.000%, 12/20/2040 | 150,513 | 158,678 | ||||||
Series 2011-66, Class UA, | ||||||||
4.000%, 05/16/2041 | 175,280 | 185,656 | ||||||
Series 2011-71, Class ZC, | ||||||||
5.500%, 07/16/2034 | 236,950 | 267,813 | ||||||
Series 2011-97, Class WA, | ||||||||
6.118%, 11/20/2038(a) | 71,446 | 81,628 | ||||||
Series 2011-H01, Class AF, | ||||||||
1M US L + 0.45%, 11/20/2060(a) | 291,972 | 292,443 | ||||||
Series 2011-H02, Class BA, | ||||||||
4.450%, 02/20/2061(a) | 19,876 | 20,403 | ||||||
Series 2011-H11, Class FA, | ||||||||
1M US L + 0.50%, 03/20/2061(a) | 43,297 | 43,421 | ||||||
Series 2011-H11, Class FB, | ||||||||
1M US L + 0.50%, 04/20/2061(a) | 168,753 | 169,191 | ||||||
Series 2011-H15, Class FA, | ||||||||
1M US L + 0.45%, 06/20/2061(a) | 74,827 | 74,944 | ||||||
Series 2012-17, Class KX, | ||||||||
3.500%, 07/20/2039 | 6,461 | 6,529 | ||||||
Series 2012-32, Class PE, | ||||||||
3.500%, 03/16/2042 | 80,000 | 89,723 | ||||||
Series 2012-38, Class PL, | ||||||||
3.250%, 01/20/2041 | 100,000 | 103,852 | ||||||
Series 2012-51, Class VM, | ||||||||
3.500%, 04/16/2025 | 119,466 | 126,558 | ||||||
Series 2012-68, Class GE, | ||||||||
3.000%, 05/20/2042 | 25,000 | 25,306 | ||||||
Series 2012-76, Class GF, | ||||||||
1M US L + 0.30%, 06/16/2042(a) | 20,246 | 20,242 | ||||||
Series 2012-84, Class YC, | ||||||||
2.500%, 07/20/2042 | 20,000 | 19,353 | ||||||
Series 2012-H08, Class FC, | ||||||||
1M US L + 0.57%, 04/20/2062(a) | 860,567 | 863,984 | ||||||
Series 2012-H14, Class FK, | ||||||||
1M US L + 0.58%, 07/20/2062(a) | 257,597 | 258,573 | ||||||
Series 2012-H20, Class PT, | ||||||||
0.991%, 07/20/2062(a) | 115,581 | 115,495 | ||||||
Series 2012-H24, Class FE, | ||||||||
1M US L + 0.60%, 10/20/2062(a) | 1,863 | 1,874 | ||||||
Series 2013-100, Class MA, | ||||||||
3.500%, 02/20/2043 | 173,352 | 179,945 | ||||||
Series 2013-115, Class PM, | ||||||||
4.000%, 08/20/2043 | 400,000 | 433,980 | ||||||
Series 2013-22, Class GB, | ||||||||
2.500%, 08/20/2042 | 120,000 | 123,991 |
73 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 2013-69, Class NA, | ||||||||
2.000%, 09/20/2042 | $ | 195,595 | $ | 197,684 | ||||
Series 2013-98, Class KF, | ||||||||
1M US L + 0.30%, 11/20/2041(a) | 19,774 | 19,775 | ||||||
Series 2013-99, Class MF, | ||||||||
1M US L + 0.30%, 07/20/2043(a) | 121,537 | 118,739 | ||||||
Series 2013-H01, Class FA, | ||||||||
1.650%, 01/20/2063 | 45,246 | 45,325 | ||||||
Series 2013-H04, Class BA, | ||||||||
1.650%, 02/20/2063 | 70,395 | 70,564 | ||||||
Series 2013-H09, Class HA, | ||||||||
1.650%, 04/20/2063 | 123,560 | 124,020 | ||||||
Series 2013-H18, Class EA, | ||||||||
1M US L + 0.50%, 07/20/2063(a) | 126,598 | 126,879 | ||||||
Series 2014-53, Class JM, | ||||||||
7.079%, 04/20/2039(a) | 416,152 | 492,876 | ||||||
Series 2014-98, Class HE, | ||||||||
3.000%, 07/20/2044 | 53,984 | 57,103 | ||||||
Series 2014-H10, Class TA, | ||||||||
1M US L + 0.60%, 04/20/2064(a) | 286,148 | 288,379 | ||||||
Series 2014-H15, Class FA, | ||||||||
1M US L + 0.50%, 07/20/2064(a) | 29,271 | 29,394 | ||||||
Series 2014-H16, Class FL, | ||||||||
1M US L + 0.47%, 07/20/2064(a) | 549,254 | 535,613 | ||||||
Series 2015-63, Class KA, | ||||||||
3.000%, 04/20/2040 | 33,494 | 35,849 | ||||||
Series 2015-84, Class QA, | ||||||||
3.500%, 06/20/2045 | 788,549 | 832,498 | ||||||
Series 2015-H09, Class FA, | ||||||||
1M US L + 0.62%, 04/20/2065(a) | 213,734 | 209,859 | ||||||
Series 2015-H12, Class FB, | ||||||||
1M US L + 0.60%, 05/20/2065(a) | 118,340 | 118,989 | ||||||
Series 2015-H15, Class FC, | ||||||||
1M US L + 0.58%, 06/20/2065(a) | 162,059 | 158,953 | ||||||
Series 2015-H22, Class FC, | ||||||||
1M US L + 0.60%, 09/20/2065(a) | 66,584 | 66,982 | ||||||
Series 2015-H26, Class FA, | ||||||||
1M US L + 0.52%, 10/20/2065(a) | 68,843 | 69,193 | ||||||
Series 2015-H26, Class FG, | ||||||||
1M US L + 0.52%, 10/20/2065(a) | 352,054 | 353,805 | ||||||
Series 2015-H29, Class FA, | ||||||||
1M US L + 0.70%, 10/20/2065(a) | 31,404 | 31,538 | ||||||
Principal Amount | Value (Note 2) | |||||||
Series 2015-H30, Class FE, | ||||||||
1M US L + 0.60%, 11/20/2065(a) | $ | 73,090 | $ | 73,682 | ||||
Series 2015-H31, Class FT, | ||||||||
1M US L + 0.65%, 11/20/2065(a) | 131,880 | 132,457 | ||||||
Series 2015-H32, Class FH, | ||||||||
1M US L + 0.66%, 12/20/2065(a) | 259,081 | 261,708 | ||||||
Series 2016-116, Class GV, | ||||||||
3.000%, 05/20/2026 | 60,993 | 64,662 | ||||||
Series 2016-120, Class KA, | ||||||||
2.000%, 09/20/2046 | 16,220 | 16,323 | ||||||
Series 2016-82, Class BA, | ||||||||
3.000%, 09/20/2045 | 620,764 | 636,024 | ||||||
Series 2016-H06, Class FC, | ||||||||
1M US L + 0.92%, 02/20/2066(a) | 222,117 | 225,736 | ||||||
Series 2016-H08, Class FT, | ||||||||
1M US L + 0.72%, 02/20/2066(a) | 563,096 | 566,594 | ||||||
Series 2016-H11, Class F, | ||||||||
1M US L + 0.80%, 05/20/2066(a) | 760,212 | 770,354 | ||||||
Series 2016-H13, Class FT, | ||||||||
1M US L + 0.58%, 05/20/2066(a) | 51,244 | 51,385 | ||||||
Series 2016-H14, Class FA, | ||||||||
1M US L + 0.80%, 06/20/2066(a) | 198,710 | 201,387 | ||||||
Series 2016-H15, Class FA, | ||||||||
1M US L + 0.80%, 07/20/2066(a) | 840,014 | 850,698 | ||||||
Series 2016-H17, Class FC, | ||||||||
1M US L + 0.83%, 08/20/2066(a) | 164,752 | 167,193 | ||||||
Series 2016-H20, Class PT, | ||||||||
3.502%, 09/20/2066(a) | 788,996 | 847,271 | ||||||
Series 2016-H23, Class F, | ||||||||
1M US L + 0.75%, 10/20/2066(a) | 302,108 | 305,655 | ||||||
Series 2016-H24, Class FG, | ||||||||
1M US L + 0.75%, 10/20/2066(a) | 227,793 | 224,826 | ||||||
Series 2017-56, Class AZ, | ||||||||
3.000%, 04/20/2047 | 106,096 | 114,829 | ||||||
Series 2017-H06, Class FE, | ||||||||
1M US L + 0.55%, 02/20/2067(a) | 64,974 | 65,316 | ||||||
Series 2017-H15, Class FC, | ||||||||
1M US L + 0.47%, 06/20/2067(a) | 137,780 | 134,788 | ||||||
Series 2017-H17, Class FG, | ||||||||
1M US L + 0.50%, 08/20/2067(a) | 58,319 | 58,489 |
74 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 2018-21, Class LE, | ||||||||
3.000%, 08/20/2044 | $ | 1,432,661 | $ | 1,437,474 | ||||
Series 2018-21, Class LK, | ||||||||
2.000%, 08/20/2044 | 1,404,007 | 1,407,964 | ||||||
Series 2018-36, Class CZ, | ||||||||
4.000%, 03/20/2048 | 246,364 | 282,919 | ||||||
Series 2018-37, Class C, | ||||||||
2.500%, 01/20/2046 | 42,457 | 44,223 | ||||||
Series 2019-111, Class TE, | ||||||||
2.000%, 09/20/2049 | 227,773 | 233,115 | ||||||
Series 2019-29, Class JB, | ||||||||
4.500%, 12/20/2046 | 774,630 | 796,714 | ||||||
Series 2019-61, Class K, | ||||||||
3.500%, 07/20/2048 | 112,429 | 113,447 | ||||||
Series 2020-5, Class LC, | ||||||||
3.500%, 10/20/2049 | 1,381,789 | 1,403,726 | ||||||
31,597,702 | ||||||||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | ||||||||
(Cost $120,489,758) | 123,237,525 |
Principal Amount | Value (Note 2) | |||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES (3.78%) | ||||||||
Fannie Mae-Aces | ||||||||
Series 2013-M6, Class 1AC, | ||||||||
3.447%, 02/25/2043(a) | 19,310,472 | 21,847,361 | ||||||
Series 2016-M3, Class ASQ2, | ||||||||
2.263%, 02/25/2023 | 92,023 | 93,391 | ||||||
Series 2017-M15, Class A1, | ||||||||
2.959%, 09/25/2027(a) | 3,963,633 | 4,285,919 | ||||||
Series 2018-M12, Class A1, | ||||||||
3.546%, 08/25/2030 | 4,707,186 | 5,358,765 | ||||||
Series 2018-M13, Class A1, | ||||||||
3.697%, 03/25/2030(a) | 3,897,988 | 4,538,209 | ||||||
Series 2018-M8, Class A1, | ||||||||
3.325%, 06/25/2028(a) | 7,493,349 | 8,361,558 | ||||||
Series 2019-M10, Class A1, | ||||||||
2.000%, 04/25/2030 | 1,801,777 | 1,910,902 | ||||||
Series 2019-M14, Class A1, | ||||||||
2.304%, 06/25/2029 | 122,833 | 130,599 | ||||||
Series 2020-M10, Class X4, | ||||||||
0.899%, 07/25/2032(a) | 54,970,601 | 4,278,884 | ||||||
50,805,588 | ||||||||
Freddie Mac Multifamily | ||||||||
Structured Pass Through | ||||||||
Certificates | ||||||||
Series 2014-KF05, Class A, | ||||||||
1M US L + 0.35%, 09/25/2021(a) | 349,299 | 349,492 |
Principal Amount | Value (Note 2) | |||||||
Series 2018-J19L, Class AFL, | ||||||||
1M US L + 0.23%, | ||||||||
11/25/2027(a) | $ | 326,979 | $ | 325,847 | ||||
675,339 | ||||||||
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES | ||||||||
(Cost $50,442,163) | 51,480,927 |
Principal Amount | Value (Note 2) | |||||||
MORTGAGE-BACKED SECURITIES (3.68%) | ||||||||
Fannie Mae Pool | ||||||||
Series 2003-386375, | ||||||||
4.790%, 08/01/2028 | 445,103 | 444,779 | ||||||
Series 2009-463331, | ||||||||
5.250%, 08/01/2029 | 683,759 | 806,450 | ||||||
Series 2010-466566, | ||||||||
4.270%, 11/01/2025 | 251,780 | 284,590 | ||||||
Series 2011-468477, | ||||||||
4.590%, 08/01/2026 | 422,594 | 474,534 | ||||||
Series 2011-AH9290, | ||||||||
4.000%, 04/01/2041 | 62,086 | 65,167 | ||||||
Series 2013-AM 4236, | ||||||||
3.940%, 08/01/2025 | 227,283 | 253,889 | ||||||
Series 2013-AM3162, | ||||||||
3.000%, 04/01/2025 | 780,166 | 810,841 | ||||||
Series 2013-AR2289, | ||||||||
3.000%, 02/01/2033 | 388,404 | 410,061 | ||||||
Series 2013-MA1586, | ||||||||
3.000%, 08/01/2043 | 281,877 | 305,334 | ||||||
Series 2014-AM4198, | ||||||||
3.550%, 03/01/2024 | 98,959 | 106,898 | ||||||
Series 2014-AM7274, | ||||||||
3.000%, 12/01/2024 | 250,000 | 255,210 | ||||||
Series 2015-AM8666, | ||||||||
2.960%, 06/01/2030 | 185,292 | 200,971 | ||||||
Series 2015-AM8918, | ||||||||
3.250%, 09/01/2030 | 731,000 | 821,172 | ||||||
Series 2015-AM9173, | ||||||||
3.110%, 06/01/2027 | 249,983 | 278,740 | ||||||
Series 2015-AM9830, | ||||||||
3.190%, 09/01/2027 | 367,709 | 402,372 | ||||||
Series 2016-AN0665, | ||||||||
3.070%, 02/01/2026 | 199,529 | 220,234 | ||||||
Series 2016-AN0774, | ||||||||
3.210%, 01/01/2026 | 182,733 | 201,460 | ||||||
Series 2016-BC0943, | ||||||||
3.500%, 05/01/2046 | 318,158 | 345,238 | ||||||
Series 2017-AN4431, | ||||||||
3.220%, 01/01/2027 | 85,000 | 95,385 | ||||||
Series 2017-AN4833, | ||||||||
3.320%, 04/01/2027 | 95,000 | 107,174 | ||||||
Series 2017-AN5279, | ||||||||
3.340%, 04/01/2029 | 471,927 | 530,526 | ||||||
Series 2017-AN5742, | ||||||||
3.190%, 05/01/2030 | 142,349 | 161,692 |
75 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Series 2017-AN6670, | ||||||||
3.210%, 09/01/2027 | $ | 1,967,453 | $ | 2,042,651 | ||||
Series 2017-AN7060, | ||||||||
2.930%, 10/01/2027 | 1,630,000 | 1,766,727 | ||||||
Series 2017-AN7384, | ||||||||
2.880%, 12/01/2027 | 50,000 | 55,523 | ||||||
Series 2017-AN7547, | ||||||||
3.370%, 11/01/2027 | 1,140,486 | 1,190,571 | ||||||
Series 2017-AN7823, | ||||||||
2.890%, 12/01/2027 | 235,000 | 261,276 | ||||||
Series 2018-109435, | ||||||||
3.890%, 08/01/2028 | 1,941,674 | 2,213,348 | ||||||
Series 2018-109741, | ||||||||
3.730%, 11/01/2025 | 11,350,000 | 12,307,663 | ||||||
Series 2018-387770, | ||||||||
3.625%, 07/01/2028 | 2,535,000 | 2,853,325 | ||||||
Series 2018-387853, | ||||||||
3.455%, 08/01/2025 | 175,000 | 187,628 | ||||||
Series 2018-387904, | ||||||||
3.840%, 08/01/2028 | 690,121 | 806,978 | ||||||
Series 2018-387905, | ||||||||
3.600%, 01/01/2027 | 744,788 | 840,710 | ||||||
Series 2018-387983, | ||||||||
3.630%, 08/01/2028 | 2,000,000 | 2,252,276 | ||||||
Series 2018-AN8198, | ||||||||
3.140%, 01/01/2028 | 300,000 | 327,662 | ||||||
Series 2018-AN8272, | ||||||||
3.170%, 02/01/2028 | 100,000 | 109,503 | ||||||
Series 2018-AN8486, | ||||||||
3.330%, 04/01/2030 | 336,263 | 384,351 | ||||||
Series 2018-AN8493, | ||||||||
3.300%, 02/01/2030 | 438,372 | 492,331 | ||||||
Series 2018-AN8982, | ||||||||
3.440%, 05/01/2028 | 1,000,000 | 1,119,068 | ||||||
Series 2018-AN9038, | ||||||||
3.460%, 05/01/2028 | 83,000 | 90,747 | ||||||
Series 2018-AN9354, | ||||||||
3.640%, 06/01/2028 | 1,565,000 | 1,762,160 | ||||||
Series 2018-BI0404, | ||||||||
4.100%, 11/01/2028 | 3,998,596 | 4,670,080 | ||||||
Series 2018-BL0119, | ||||||||
4.090%, 11/01/2026 | 797,072 | 913,766 | ||||||
Series 2018-BL0550, | ||||||||
3.770%, 11/01/2028 | 660,000 | 772,013 | ||||||
Series 2018-BL0907, | ||||||||
3.880%, 12/01/2028 | 175,000 | 204,663 | ||||||
Series 2019-, | ||||||||
3.020%, 05/01/2026 | 165,000 | 180,930 | ||||||
Series 2019-BI2928, | ||||||||
3.410%, 07/01/2027 | 840,905 | 948,670 | ||||||
Series 2019-BL1300, | ||||||||
4.200%, 01/01/2029 | 245,000 | 286,172 | ||||||
Series 2019-BL1451, | ||||||||
3.760%, 02/01/2029 | 685,000 | 795,080 | ||||||
Series 2019-BL1596, | ||||||||
3.480%, 03/01/2029 | 73,173 | 84,138 |
Principal Amount | Value (Note 2) | |||||||
Series 2019-BL2236, | ||||||||
3.640%, 10/01/2029 | $ | 1,100,000 | $ | 1,270,894 | ||||
Series 2019-BL2460, | ||||||||
3.400%, 05/01/2029 | 597,527 | 663,607 | ||||||
Series 2019-BL3182, | ||||||||
2.980%, 07/01/2029 | 259,630 | 287,847 | ||||||
Series 2019-BM6011, | ||||||||
3.357%, 11/01/2026(a) | 170,145 | 184,306 | ||||||
49,909,381 | ||||||||
Freddie Mac Gold Pool | ||||||||
Series 2013-G80393, | ||||||||
5.000%, 08/20/2036 | 217,779 | 245,755 | ||||||
Freddie Mac Pool | ||||||||
Series 2005-002936, | ||||||||
Class FC, | ||||||||
1M US L + 0.40%, 03/15/2029(a) | 33,793 | 33,933 | ||||||
TOTAL MORTGAGE-BACKED SECURITIES | ||||||||
(Cost $49,009,141) | 50,189,069 | |||||||
CORPORATE BONDS (65.45%) | ||||||||
Aerospace & Defense (1.76%) | ||||||||
BAE Systems PLC | ||||||||
3.400%, 04/15/2030(d) | 2,000,000 | 2,225,600 | ||||||
Boeing Co. | ||||||||
4.508%, 05/01/2023 | 4,400,000 | 4,663,527 | ||||||
Huntington Ingalls Industries, Inc. | ||||||||
3.844%, 05/01/2025(d) | 3,865,000 | 4,256,886 | ||||||
4.200%, 05/01/2030(d) | 1,000,000 | 1,156,528 | ||||||
5.000%, 11/15/2025(d) | 2,281,000 | 2,339,432 | ||||||
L3Harris Technologies, Inc. | ||||||||
3.850%, 12/15/2026 | 3,544,000 | 4,032,436 | ||||||
TransDigm, Inc. | ||||||||
6.250%, 03/15/2026(d) | 5,000,000 | 5,218,776 | ||||||
Total Aerospace & Defense | 23,893,185 | |||||||
Airlines (1.14%) | ||||||||
Alaska Airlines 2020-1 Class A Pass | ||||||||
Through Trust | ||||||||
4.800%, 08/15/2027(d) | 6,000,000 | 6,325,880 | ||||||
Southwest Airlines Co. | ||||||||
4.750%, 05/04/2023 | 2,500,000 | 2,679,476 | ||||||
5.250%, 05/04/2025 | 1,750,000 | 1,947,710 | ||||||
United Airlines 2020-1 Class A Pass | ||||||||
Through Trust | ||||||||
Series 20-1 | ||||||||
5.875%, 10/15/2027 | 4,575,000 | 4,600,529 | ||||||
Total Airlines | 15,553,595 | |||||||
Apparel & Textile Products (0.15%) | ||||||||
Hanesbrands, Inc. | ||||||||
5.375%, 05/15/2025(d) | 2,000,000 | 2,107,500 |
76 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Automobiles Manufacturing (3.35%) | ||||||||
American Honda Finance Corp. | ||||||||
0.650%, 09/08/2023 | $ | 500,000 | $ | 501,840 | ||||
Ford Motor Co. | ||||||||
5.291%, 12/08/2046 | 3,410,000 | 3,229,986 | ||||||
8.500%, 04/21/2023 | 500,000 | 552,673 | ||||||
9.000%, 04/22/2025 | 8,500,000 | 10,009,047 | ||||||
Ford Motor Credit Co. LLC | ||||||||
2.343%, 11/02/2020 | 777,000 | 777,000 | ||||||
3.200%, 01/15/2021 | 2,700,000 | 2,705,063 | ||||||
3.813%, 10/12/2021 | 2,500,000 | 2,517,188 | ||||||
5.875%, 08/02/2021 | 700,000 | 715,715 | ||||||
General Motors Co. | ||||||||
5.000%, 04/01/2035 | 1,260,000 | 1,398,464 | ||||||
5.400%, 10/02/2023 | 500,000 | 553,367 | ||||||
5.950%, 04/01/2049 | 1,765,000 | 2,153,320 | ||||||
6.125%, 10/01/2025 | 3,048,000 | 3,575,781 | ||||||
6.800%, 10/01/2027 | 2,000,000 | 2,456,426 | ||||||
General Motors Financial Co., Inc. | ||||||||
1.700%, 08/18/2023 | 2,320,000 | 2,342,698 | ||||||
5.200%, 03/20/2023 | 2,000,000 | 2,171,335 | ||||||
Nissan Motor Co., Ltd. | ||||||||
4.345%, 09/17/2027(d) | 6,500,000 | 6,523,464 | ||||||
4.810%, 09/17/2030(d) | 3,300,000 | 3,316,066 | ||||||
Total Automobiles Manufacturing | 45,499,433 | |||||||
Banks (7.72%) | ||||||||
Associated Bank NA/Green Bay WI | ||||||||
3.500%, 08/13/2021 | 1,800,000 | 1,836,870 | ||||||
4.250%, 01/15/2025 | 934,000 | 995,056 | ||||||
Bank of New Zealand | ||||||||
2.000%, 02/21/2025(d) | 7,375,000 | 7,711,791 | ||||||
CIT Group, Inc. | ||||||||
1D US SOFR + 3.827%, 06/19/2024(a) | 11,895,000 | 12,355,930 | ||||||
Citizens Financial Group, Inc. | ||||||||
Series F | ||||||||
5Y US TI + 5.313%(a)(e) | 5,000,000 | 5,331,250 | ||||||
2.638%, 09/30/2032(d) | 6,319,000 | 6,325,221 | ||||||
Comerica, Inc. | ||||||||
5Y US TI + 5.291%(a)(e) | 2,000,000 | 2,140,000 | ||||||
Cooperatieve Rabobank UA | ||||||||
3.750%, 07/21/2026 | 4,500,000 | 5,042,283 | ||||||
3.950%, 11/09/2022 | 675,000 | 719,911 | ||||||
Credit Suisse AG | ||||||||
1.000%, 05/05/2023 | 3,150,000 | 3,191,161 |
Principal Amount | Value (Note 2) | |||||||
Danske Bank A/S | ||||||||
5.000%, 01/12/2022(d) | $ | 4,625,000 | $ | 4,845,090 | ||||
5.375%, 01/12/2024(d) | 1,000,000 | 1,124,375 | ||||||
1Y US TI + 1.03%, | ||||||||
12/08/2023(a)(d) | 2,000,000 | 2,003,890 | ||||||
1Y US TI + 1.35%, | ||||||||
09/11/2026(a)(d) | 6,500,000 | 6,463,533 | ||||||
3M US L + 1.249%, | ||||||||
09/20/2022(a)(d) | 1,000,000 | 1,017,718 | ||||||
3M US L + 1.591%, | ||||||||
12/20/2025(a)(d) | 1,750,000 | 1,856,905 | ||||||
First Horizon National Corp. | ||||||||
3.550%, 05/26/2023 | 2,500,000 | 2,633,768 | ||||||
First Republic Bank | ||||||||
1D US SOFR + 0.62%, | ||||||||
02/12/2024(a) | 5,500,000 | 5,664,109 | ||||||
FNB Corp. | ||||||||
2.200%, 02/24/2023 | 1,800,000 | 1,820,031 | ||||||
Huntington Bancshares, Inc. | ||||||||
Series G | ||||||||
H15T7Y + 4.045%(a)(e) | 1,750,000 | 1,745,625 | ||||||
Lloyds Banking Group PLC | ||||||||
1Y US TI + 1.00%, | ||||||||
02/05/2026(a) | 500,000 | 521,641 | ||||||
1Y US TI + 1.10%, | ||||||||
06/15/2023(a) | 1,800,000 | 1,815,096 | ||||||
Synovus Bank/Columbus GA | ||||||||
1D US SOFR + 0.945%, | ||||||||
02/10/2023(a) | 5,500,000 | 5,574,129 | ||||||
Truist Bank | ||||||||
5Y US TI + 1.15%, | ||||||||
09/17/2029(a) | 4,750,000 | 4,928,550 | ||||||
Truist Financial Corp. | ||||||||
Series P | ||||||||
5Y US TI + 4.605%(a)(e) | 4,000,000 | 4,250,000 | ||||||
UniCredit SpA | ||||||||
1Y US TI + 2.30%, | ||||||||
09/22/2026(a)(d) | 3,000,000 | 2,976,504 | ||||||
Wells Fargo & Co. | ||||||||
4.100%, 06/03/2026 | 6,800,000 | 7,692,720 | ||||||
1D US SOFR + 1.60%, | ||||||||
06/02/2024(a) | 2,800,000 | 2,862,807 | ||||||
Total Banks | 105,445,964 | |||||||
Biotechnology (0.21%) | ||||||||
Royalty Pharma PLC | ||||||||
0.750%, 09/02/2023(d) | 2,900,000 | 2,900,666 | ||||||
Cable & Satellite (1.96%) | ||||||||
CCO Holdings LLC / CCO Holdings Capital Corp. | ||||||||
4.250%, 02/01/2031(d) | 5,000,000 | 5,118,750 | ||||||
4.500%, 08/15/2030(d) | 2,000,000 | 2,080,010 |
77 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Charter Communications | ||||||||
Operating LLC / Charter | ||||||||
Communications Operating | ||||||||
Capital | ||||||||
3.750%, 02/15/2028 | $ | 8,250,000 | $ | 9,102,732 | ||||
4.800%, 03/01/2050 | 500,000 | 569,079 | ||||||
3M US L + 1.65%, 02/01/2024(a) | 500,000 | 512,762 | ||||||
Sirius XM Radio, Inc. | ||||||||
3.875%, 08/01/2022(d) | 4,335,000 | 4,372,931 | ||||||
Time Warner Cable LLC | ||||||||
4.000%, 09/01/2021 | 4,797,000 | 4,891,734 | ||||||
Total Cable & Satellite | 26,647,998 | |||||||
Chemicals (0.81%) | ||||||||
Ecolab, Inc. | ||||||||
1.300%, 01/30/2031 | 4,000,000 | 3,923,201 | ||||||
LYB International Finance III LLC | ||||||||
1.250%, 10/01/2025 | 295,000 | 296,073 | ||||||
2.250%, 10/01/2030 | 995,000 | 993,899 | ||||||
3.375%, 10/01/2040 | 2,825,000 | 2,795,631 | ||||||
3M US L + 1.00%, 10/01/2023(a) | 3,125,000 | 3,127,269 | ||||||
Total Chemicals | 11,136,073 | |||||||
Commercial Finance (1.34%) | ||||||||
AerCap Ireland Capital DAC / | ||||||||
AerCap Global Aviation Trust | ||||||||
3.150%, 02/15/2024 | 2,090,000 | 2,077,915 | ||||||
3.500%, 01/15/2025 | 2,225,000 | 2,193,837 | ||||||
4.625%, 10/15/2027 | 1,920,000 | 1,903,908 | ||||||
6.500%, 07/15/2025 | 7,493,000 | 8,254,324 | ||||||
Avolon Holdings Funding, Ltd. | ||||||||
5.500%, 01/15/2026(d) | 1,900,000 | 1,944,436 | ||||||
Park Aerospace Holdings, Ltd. | ||||||||
4.500%, 03/15/2023(d) | 1,850,000 | 1,869,415 | ||||||
Total Commercial Finance | 18,243,835 | |||||||
Consumer Finance (3.39%) | ||||||||
Ally Financial, Inc. | ||||||||
4.250%, 04/15/2021 | 1,043,000 | 1,059,354 | ||||||
American Express Co. | ||||||||
Series B | ||||||||
3M US L + 3.428%(a)(e) | 7,977,000 | 7,623,061 | ||||||
Capital One Financial Corp. | ||||||||
2.600%, 05/11/2023 | 1,600,000 | 1,677,642 | ||||||
Discover Financial Services | ||||||||
Series D | ||||||||
5Y US TI + 5.783%(a)(e) | 5,000,000 | 5,402,500 | ||||||
Global Payments, Inc. | ||||||||
2.900%, 05/15/2030 | 3,000,000 | 3,188,227 | ||||||
3.200%, 08/15/2029 | 1,000,000 | 1,082,212 | ||||||
4.450%, 06/01/2028 | 3,000,000 | 3,480,519 | ||||||
OneMain Finance Corp. | ||||||||
8.875%, 06/01/2025 | 8,000,000 | 8,814,800 |
Principal Amount | Value (Note 2) | |||||||
Quicken Loans LLC | ||||||||
3.625%, 03/01/2029(d) | $ | 2,000,000 | $ | 1,973,750 | ||||
3.875%, 03/01/2031(d) | 4,000,000 | 3,945,000 | ||||||
5.250%, 01/15/2028(d) | 2,500,000 | 2,617,838 | ||||||
Synchrony Financial | ||||||||
3.700%, 08/04/2026 | 3,192,000 | 3,445,009 | ||||||
4.250%, 08/15/2024 | 1,700,000 | 1,860,830 | ||||||
Total Consumer Finance | 46,170,742 | |||||||
Consumer Products (0.32%) | ||||||||
Clorox Co. | ||||||||
1.800%, 05/15/2030 | 2,000,000 | 2,036,251 | ||||||
Procter & Gamble Co. | ||||||||
3.000%, 03/25/2030 | 2,000,000 | 2,300,258 | ||||||
Total Consumer Products | 4,336,509 | |||||||
Containers & Packaging (0.61%) | ||||||||
Ball Corp. | ||||||||
2.875%, 08/15/2030 | 3,000,000 | 2,970,000 | ||||||
WRKCo, Inc. | ||||||||
3.000%, 06/15/2033 | 4,985,000 | 5,312,343 | ||||||
Total Containers & Packaging | 8,282,343 | |||||||
Department Stores (0.67%) | ||||||||
Nordstrom, Inc. | ||||||||
8.750%, 05/15/2025(d) | 8,200,000 | 8,984,408 | ||||||
Diversified Banks (4.46%) | ||||||||
Bank of America Corp. | ||||||||
4.450%, 03/03/2026 | 6,532,000 | 7,521,082 | ||||||
1D US SOFR + 1.37%, | ||||||||
10/24/2031(a) | 6,700,000 | 6,626,903 | ||||||
1D US SOFR + 1.53%, | ||||||||
07/23/2031(a) | 7,000,000 | 6,915,649 | ||||||
1D US SOFR + 1.88%, | ||||||||
10/24/2051(a) | 2,720,000 | 2,697,273 | ||||||
Citigroup, Inc. | ||||||||
4.300%, 11/20/2026 | 7,008,000 | 8,048,273 | ||||||
JPMorgan Chase & Co. | ||||||||
1D US SOFR + 2.04%, | ||||||||
04/22/2031(a) | 4,000,000 | 4,220,592 | ||||||
Mitsubishi UFJ Financial Group, Inc. | ||||||||
1.412%, 07/17/2025 | 3,250,000 | 3,305,701 | ||||||
1Y US TI + 0.68%, | ||||||||
09/15/2024(a) | 1,500,000 | 1,502,674 | ||||||
Mizuho Financial Group, Inc. | ||||||||
3M US L + 0.61%, | ||||||||
09/08/2024(a) | 7,000,000 | 6,988,161 | ||||||
Natwest Group PLC | ||||||||
6.125%, 12/15/2022 | 6,465,000 | 7,079,526 | ||||||
1Y US TI + 2.15%, | ||||||||
05/22/2024(a) | 1,000,000 | 1,033,688 | ||||||
1Y US TI + 2.55%, | ||||||||
05/22/2028(a) | 2,000,000 | 2,113,631 | ||||||
Standard Chartered PLC | ||||||||
3M US L + 1.209%, | ||||||||
01/30/2026(a)(d) | 2,500,000 | 2,603,068 | ||||||
Total Diversified Banks | 60,656,221 |
78 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Electrical Equipment Manufacturing (1.17%) | ||||||||
Acuity Brands Lighting, Inc. | ||||||||
2.150%, 12/15/2030 | $ | 9,950,000 | $ | 9,724,801 | ||||
Otis Worldwide Corp. | ||||||||
3M US L + 0.45%, | ||||||||
04/05/2023(a) | 900,000 | 900,283 | ||||||
Roper Technologies, Inc. | ||||||||
0.450%, 08/15/2022 | 1,635,000 | 1,638,232 | ||||||
Trimble, Inc. | ||||||||
4.750%, 12/01/2024 | 3,254,000 | 3,704,028 | ||||||
Total Electrical Equipment Manufacturing | 15,967,344 | |||||||
Exploration & Production (0.16%) | ||||||||
Concho Resources, Inc. | ||||||||
3.750%, 10/01/2027 | 2,000,000 | 2,226,289 | ||||||
Financial Services (7.90%) | ||||||||
Ameriprise Financial, Inc. | ||||||||
3.000%, 04/02/2025 | 5,000,000 | 5,421,803 | ||||||
Carlyle Finance Subsidiary LLC | ||||||||
3.500%, 09/19/2029(d) | 2,000,000 | 2,161,999 | ||||||
Credit Suisse Group AG | ||||||||
1D US SOFR + 2.044%, | ||||||||
06/05/2026(a)(d) | 3,000,000 | 3,099,650 | ||||||
Franklin Resources, Inc. | ||||||||
1.600%, 10/30/2030 | 2,985,000 | 2,927,848 | ||||||
Goldman Sachs Group, Inc. | ||||||||
3.500%, 04/01/2025 | 7,006,000 | 7,720,642 | ||||||
3.800%, 03/15/2030 | 3,750,000 | 4,328,513 | ||||||
Intercontinental Exchange, Inc. | ||||||||
0.700%, 06/15/2023 | 650,000 | 654,011 | ||||||
1.850%, 09/15/2032 | 2,000,000 | 1,980,040 | ||||||
2.650%, 09/15/2040 | 2,000,000 | 2,007,820 | ||||||
Series FRN | ||||||||
3M US L + 0.65%, | ||||||||
06/15/2023(a) | 3,650,000 | 3,663,542 | ||||||
Jefferies Group LLC | ||||||||
2.750%, 10/15/2032 | 3,905,000 | 3,993,836 | ||||||
5.125%, 01/20/2023 | 3,085,000 | 3,361,535 | ||||||
KKR Group Finance Co. VIII LLC | ||||||||
3.500%, 08/25/2050(d) | 6,440,000 | 6,504,077 | ||||||
LPL Holdings, Inc. | ||||||||
4.625%, 11/15/2027(d) | 1,000,000 | 1,028,125 | ||||||
5.750%, 09/15/2025(d) | 18,177,000 | 18,813,194 | ||||||
Morgan Stanley | ||||||||
Series GMTN | ||||||||
1D US SOFR + 1.143%, | ||||||||
01/22/2031(a) | 9,000,000 | 9,620,067 | ||||||
1D US SOFR + 3.12%, | ||||||||
04/01/2031(a) | 4,000,000 | 4,591,943 | ||||||
Series I | ||||||||
1D US SOFR + 0.745%, | ||||||||
10/21/2025(a) | 1,740,000 | 1,737,211 | ||||||
National Securities Clearing Corp. | ||||||||
1.200%, 04/23/2023(d) | 2,600,000 | 2,648,731 | ||||||
1.500%, 04/23/2025(d) | 1,600,000 | 1,644,778 |
Principal Amount | Value (Note 2) | |||||||
Raymond James Financial, Inc. | ||||||||
4.650%, 04/01/2030 | $ | 9,000,000 | $ | 10,899,350 | ||||
State Street Corp. | ||||||||
1D US SOFR + 0.94%, | ||||||||
11/01/2025(a) | 1,500,000 | 1,589,096 | ||||||
UBS AG/London | ||||||||
1.750%, 04/21/2022(d) | 1,500,000 | 1,527,314 | ||||||
UBS Group AG | ||||||||
1Y US TI + 0.83%, | ||||||||
07/30/2024(a)(d) | 1,000,000 | 1,004,335 | ||||||
1Y US TI + 1.08%, | ||||||||
01/30/2027(a)(d) | 2,000,000 | 1,995,575 | ||||||
USAA Capital Corp. | ||||||||
2.125%, 05/01/2030(d) | 2,500,000 | 2,603,456 | ||||||
Total Financial Services | 107,528,491 | |||||||
Food & Beverage (2.19%) | ||||||||
Anheuser-Busch InBev Worldwide, | ||||||||
Inc. | ||||||||
3.650%, 02/01/2026 | 500,000 | 560,862 | ||||||
4.000%, 01/17/2043 | 1,920,000 | 2,087,556 | ||||||
4.900%, 02/01/2046 | 1,000,000 | 1,227,487 | ||||||
Campbell Soup Co. | ||||||||
2.375%, 04/24/2030 | 1,000,000 | 1,032,676 | ||||||
3.125%, 04/24/2050 | 2,000,000 | 1,991,154 | ||||||
3.300%, 03/19/2025 | 2,850,000 | 3,110,569 | ||||||
3.800%, 08/02/2042 | 321,000 | 323,688 | ||||||
Hormel Foods Corp. | ||||||||
1.800%, 06/11/2030 | 5,500,000 | 5,627,344 | ||||||
Pernod Ricard International | ||||||||
Finance LLC | ||||||||
1.250%, 04/01/2028(d) | 2,000,000 | 1,948,792 | ||||||
1.625%, 04/01/2031(d) | 3,000,000 | 2,896,322 | ||||||
2.750%, 10/01/2050(d) | 1,000,000 | 953,799 | ||||||
Smithfield Foods, Inc. | ||||||||
3.000%, 10/15/2030(d) | 7,975,000 | 8,140,123 | ||||||
Total Food & Beverage | 29,900,372 | |||||||
Forest & Paper Products Manufacturing (0.46%) | ||||||||
Georgia-Pacific LLC | ||||||||
2.100%, 04/30/2027(d) | 1,000,000 | 1,041,668 | ||||||
2.300%, 04/30/2030(d) | 5,000,000 | 5,234,127 | ||||||
Total Forest & Paper Products Manufacturing | 6,275,795 | |||||||
Health Care Facilities & Services (1.57%) | ||||||||
Cigna Corp. | ||||||||
Series WI | ||||||||
3M US L + 0.65%, | ||||||||
09/17/2021(a) | 2,895,000 | 2,895,579 | ||||||
HCA, Inc. | ||||||||
3.500%, 09/01/2030 | 3,500,000 | 3,579,006 | ||||||
4.125%, 06/15/2029 | 3,000,000 | 3,404,397 | ||||||
4.500%, 02/15/2027 | 3,680,000 | 4,165,358 | ||||||
5.250%, 04/15/2025 | 1,737,000 | 2,012,961 | ||||||
5.250%, 06/15/2049 | 3,500,000 | 4,253,968 |
79 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Jaguar Holding Co. II / PPD | ||||||||
Development LP | ||||||||
4.625%, 06/15/2025(d) | $ | 500,000 | $ | 517,310 | ||||
5.000%, 06/15/2028(d) | 500,000 | 521,780 | ||||||
Total Health Care Facilities & Services | 21,350,359 | |||||||
Home & Office Products Manufacturing (0.39%) | ||||||||
Newell Brands, Inc. | ||||||||
4.875%, 06/01/2025 | 4,950,000 | 5,366,048 | ||||||
Homebuilders (0.67%) | ||||||||
Shea Homes LP / Shea Homes | �� | |||||||
Funding Corp. | ||||||||
4.750%, 04/01/2029(d) | 3,500,000 | 3,561,250 | ||||||
TRI Pointe Group, Inc. | ||||||||
5.700%, 06/15/2028 | 5,000,000 | 5,562,500 | ||||||
Total Homebuilders | 9,123,750 | |||||||
Industrial Other (0.08%) | ||||||||
3M Co. | ||||||||
3.050%, 04/15/2030 | 1,000,000 | 1,127,945 | ||||||
Integrated Oils (0.33%) | ||||||||
BP Capital Markets America, Inc. | ||||||||
3.543%, 04/06/2027 | 4,000,000 | 4,441,224 | ||||||
Machinery Manufacturing (0.05%) | ||||||||
Caterpillar Financial Services Corp. | ||||||||
0.950%, 05/13/2022 | 700,000 | 706,538 | ||||||
Mass Merchants (0.41%) | ||||||||
Costco Wholesale Corp. | ||||||||
1.375%, 06/20/2027 | 2,000,000 | 2,039,048 | ||||||
1.600%, 04/20/2030 | 3,000,000 | 3,031,468 | ||||||
1.750%, 04/20/2032 | 500,000 | 509,396 | ||||||
Total Mass Merchants | 5,579,912 | |||||||
Medical Equipment & Devices Manufacturing (0.19%) | ||||||||
Avantor Funding, Inc. | ||||||||
4.625%, 07/15/2028(d) | 2,500,000 | 2,593,625 | ||||||
Metals & Mining (0.44%) | ||||||||
Steel Dynamics, Inc. | ||||||||
3.250%, 01/15/2031 | 5,500,000 | 5,947,956 | ||||||
Pharmaceuticals (3.78%) | ||||||||
AbbVie, Inc. | ||||||||
2.150%, 11/19/2021(d) | 3,250,000 | 3,308,033 | ||||||
2.950%, 11/21/2026(d) | 4,000,000 | 4,371,282 | ||||||
3.200%, 11/21/2029(d) | 1,000,000 | 1,104,615 | ||||||
3.600%, 05/14/2025 | 600,000 | 665,377 | ||||||
4.050%, 11/21/2039(d) | 1,250,000 | 1,429,557 | ||||||
4.250%, 11/21/2049(d) | 3,000,000 | 3,501,724 | ||||||
Bausch Health Cos., Inc. | ||||||||
6.125%, 04/15/2025(d) | 4,900,000 | 5,042,100 | ||||||
7.000%, 03/15/2024(d) | 2,500,000 | 2,593,125 |
Principal Amount | Value (Note 2) | |||||||
Elanco Animal Health, Inc. | ||||||||
4.912%, 08/27/2021 | $ | 2,919,000 | $ | 2,990,151 | ||||
5.272%, 08/28/2023 | 5,412,000 | 5,860,736 | ||||||
5.900%, 08/28/2028 | 2,003,000 | 2,337,651 | ||||||
Johnson & Johnson | ||||||||
0.950%, 09/01/2027 | 1,000,000 | 997,363 | ||||||
Upjohn, Inc. | ||||||||
1.125%, 06/22/2022(d) | 500,000 | 504,732 | ||||||
1.650%, 06/22/2025(d) | 500,000 | 511,053 | ||||||
2.700%, 06/22/2030(d) | 3,000,000 | 3,099,714 | ||||||
3.850%, 06/22/2040(d) | 5,000,000 | 5,376,739 | ||||||
4.000%, 06/22/2050(d) | 7,500,000 | 7,892,648 | ||||||
Total Pharmaceuticals | 51,586,600 | |||||||
Pipeline (3.06%) | ||||||||
Buckeye Partners LP | ||||||||
3.950%, 12/01/2026 | 620,000 | 576,600 | ||||||
4.125%, 12/01/2027 | 1,362,000 | 1,284,536 | ||||||
4.150%, 07/01/2023 | 3,800,000 | 3,750,125 | ||||||
4.350%, 10/15/2024 | 1,450,000 | 1,411,031 | ||||||
Energy Transfer Operating LP | ||||||||
4.200%, 04/15/2027 | 2,215,000 | 2,304,829 | ||||||
Series B | ||||||||
3M US L + 4.155%(a)(e) | 2,506,000 | 1,783,633 | ||||||
Midwest Connector Capital Co. | ||||||||
LLC | ||||||||
3.625%, 04/01/2022(d) | 7,635,000 | 7,713,833 | ||||||
3.900%, 04/01/2024(d) | 4,025,000 | 4,083,594 | ||||||
MPLX LP | ||||||||
4.875%, 12/01/2024 | 2,800,000 | 3,137,134 | ||||||
5.250%, 01/15/2025 | 2,378,000 | 2,452,542 | ||||||
Sabine Pass Liquefaction LLC | ||||||||
4.500%, 05/15/2030(d) | 5,000,000 | 5,595,617 | ||||||
Western Midstream Operating LP | ||||||||
4.100%, 02/01/2025 | 5,500,000 | 5,190,405 | ||||||
3M US L + 1.85%, 01/13/2023(a) | 2,630,000 | 2,447,574 | ||||||
Total Pipeline | 41,731,453 | |||||||
Property & Casualty Insurance (0.23%) | ||||||||
Berkshire Hathaway Finance Corp. | ||||||||
1.850%, 03/12/2030 | 1,000,000 | 1,032,402 | ||||||
Fairfax US, Inc. | ||||||||
4.875%, 08/13/2024(d) | 2,000,000 | 2,141,505 | ||||||
Total Property & Casualty Insurance | 3,173,907 | |||||||
Publishing & Broadcasting (0.82%) | ||||||||
Nexstar Broadcasting, Inc. | ||||||||
4.750%, 11/01/2028(d) | 8,000,000 | 8,075,000 | ||||||
TEGNA, Inc. | ||||||||
4.750%, 03/15/2026(d) | 3,000,000 | 3,086,250 | ||||||
Total Publishing & Broadcasting | 11,161,250 | |||||||
Railroad (0.84%) | ||||||||
Westinghouse Air Brake | ||||||||
Technologies Corp. | ||||||||
3.200%, 06/15/2025 | 10,721,000 | 11,432,152 |
80 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Real Estate (0.72%) | ||||||||
Cushman & Wakefield US | ||||||||
Borrower LLC | ||||||||
6.750%, 05/15/2028(d) | $ | 4,000,000 | $ | 4,267,500 | ||||
MGM Growth Properties | ||||||||
Operating Partnership LP / | ||||||||
MGP Finance Co.-Issuer, Inc. | ||||||||
4.625%, 06/15/2025(d) | 5,500,000 | 5,607,030 | ||||||
Total Real Estate | 9,874,530 | |||||||
Refining & Marketing (1.34%) | ||||||||
HollyFrontier Corp. | ||||||||
4.500%, 10/01/2030 | 3,000,000 | 2,812,613 | ||||||
Marathon Petroleum Corp. | ||||||||
4.500%, 05/01/2023 | 1,500,000 | 1,613,201 | ||||||
4.700%, 05/01/2025 | 1,000,000 | 1,111,033 | ||||||
5.125%, 12/15/2026 | 1,713,000 | 1,960,761 | ||||||
Valero Energy Corp. | ||||||||
3M US L + 1.15%, | ||||||||
09/15/2023(a) | 10,750,000 | 10,747,086 | ||||||
Total Refining & Marketing | 18,244,694 | |||||||
Restaurants (0.40%) | ||||||||
1011778 BC ULC / New Red | ||||||||
Finance, Inc. | ||||||||
4.250%, 05/15/2024(d) | 5,400,000 | 5,516,100 | ||||||
Retail - Consumer Discretionary (0.57%) | ||||||||
Gap, Inc. | ||||||||
8.375%, 05/15/2023(d) | 500,000 | 558,800 | ||||||
8.625%, 05/15/2025(d) | 2,000,000 | 2,198,000 | ||||||
8.875%, 05/15/2027(d) | 1,000,000 | 1,144,700 | ||||||
Genuine Parts Co. | ||||||||
1.875%, 11/01/2030 | 1,990,000 | 1,949,724 | ||||||
Tractor Supply Co. | ||||||||
1.750%, 11/01/2030 | 1,990,000 | 1,953,806 | ||||||
Total Retail - Consumer Discretionary | 7,805,030 | |||||||
Semiconductors (1.56%) | ||||||||
Microchip Technology, Inc. | ||||||||
2.670%, 09/01/2023(d) | 7,000,000 | 7,268,155 | ||||||
3.922%, 06/01/2021 | 13,822,000 | 14,085,492 | ||||||
Total Semiconductors | 21,353,647 | |||||||
Software & Services (2.65%) | ||||||||
Black Knight InfoServ LLC | ||||||||
3.625%, 09/01/2028(d) | 7,931,000 | 8,040,051 | ||||||
Booz Allen Hamilton, Inc. | ||||||||
3.875%, 09/01/2028(d) | 2,500,000 | 2,542,188 | ||||||
CoStar Group, Inc. | ||||||||
2.800%, 07/15/2030(d) | 10,000,000 | 10,275,390 | ||||||
Leidos, Inc. | ||||||||
2.950%, 05/15/2023(d) | 1,250,000 | 1,316,597 | ||||||
3.625%, 05/15/2025(d) | 1,000,000 | 1,108,070 | ||||||
4.375%, 05/15/2030(d) | 7,857,000 | 9,155,448 |
Principal Amount | Value (Note 2) | |||||||
Nielsen Finance LLC / Nielsen | ||||||||
Finance Co. | ||||||||
5.625%, 10/01/2028(d) | $ | 2,000,000 | $ | 2,073,750 | ||||
5.875%, 10/01/2030(d) | 1,500,000 | 1,579,688 | ||||||
Total Software & Services | 36,091,182 | |||||||
Supermarkets & Pharmacies (0.95%) | ||||||||
Albertsons Cos. Inc / Safeway, Inc. | ||||||||
/ New Albertsons LP / | ||||||||
Albertsons LLC | ||||||||
3.250%, 03/15/2026(d) | 3,000,000 | 2,951,250 | ||||||
3.500%, 02/15/2023(d) | 6,850,000 | 6,968,163 | ||||||
Kroger Co. | ||||||||
2.650%, 10/15/2026 | 2,860,000 | 3,094,669 | ||||||
Total Supermarkets & Pharmacies | 13,014,082 | |||||||
Transportation & Logistics (0.58%) | ||||||||
FedEx Corp. 2020-1 Class AA Pass | ||||||||
Through Trust | ||||||||
1.875%, 02/20/2034 | 7,906,000 | 7,942,187 | ||||||
Utilities (1.26%) | ||||||||
Berkshire Hathaway Energy Co. | ||||||||
3.700%, 07/15/2030(d) | 1,000,000 | 1,161,669 | ||||||
4.250%, 10/15/2050(d) | 500,000 | 603,339 | ||||||
Dominion Energy, Inc. | ||||||||
2.715%, 08/15/2021(c) | 2,300,000 | 2,338,926 | ||||||
3.071%, 08/15/2024(c) | 1,500,000 | 1,620,410 | ||||||
4.104%, 04/01/2021(c) | 5,505,000 | 5,587,665 | ||||||
Exelon Corp. | ||||||||
3.497%, 06/01/2022 | 2,673,000 | 2,787,375 | ||||||
Nevada Power Co. | ||||||||
Series DD | ||||||||
2.400%, 05/01/2030 | 2,000,000 | 2,128,593 | ||||||
NextEra Energy Capital Holdings, | ||||||||
Inc. | ||||||||
2.403%, 09/01/2021 | 1,000,000 | 1,017,314 | ||||||
Total Utilities | 17,245,291 | |||||||
Waste & Environment Services & Equipment (0.39%) | ||||||||
GFL Environmental, Inc. | ||||||||
3.750%, 08/01/2025(d) | 1,000,000 | 1,001,875 | ||||||
4.250%, 06/01/2025(d) | 4,254,000 | 4,347,056 | ||||||
Total Waste & Environment Services & Equipment | 5,348,931 | |||||||
Wireless Telecommunications Services (2.18%) | ||||||||
AT&T, Inc. | ||||||||
2.750%, 06/01/2031 | 9,000,000 | 9,339,494 | ||||||
4.300%, 12/15/2042 | 4,500,000 | 5,006,523 | ||||||
T-Mobile USA, Inc. | ||||||||
2.050%, 02/15/2028(d) | 7,000,000 | 7,092,540 | ||||||
2.250%, 11/15/2031(d) | 995,000 | 987,647 | ||||||
3.300%, 02/15/2051(d) | 1,875,000 | 1,813,425 | ||||||
3.600%, 11/15/2060(d) | 995,000 | 975,677 | ||||||
3.875%, 04/15/2030(d) | 4,000,000 | 4,498,440 | ||||||
Total Wireless Telecommunications Services | 29,713,746 |
81 | October 31, 2020
ALPS | Smith Total Return Bond Fund |
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Wireline Telecommunications Services (0.22%) | ||||||||
CenturyLink, Inc. | ||||||||
Series S | ||||||||
6.450%, 06/15/2021 | $ | 3,000,000 | $ | 3,066,750 | ||||
TOTAL CORPORATE BONDS | ||||||||
(Cost $864,369,703) | 892,295,652 | |||||||
GOVERNMENT BONDS (15.27%) | ||||||||
U.S. Treasury Bonds (15.27%) | ||||||||
United States Treasury Bonds | ||||||||
0.625%, 05/15/2030 | 3,582,000 | 3,506,442 | ||||||
1.125%, 05/15/2040 | 3,874,000 | 3,682,116 | ||||||
1.125%, 08/15/2040 | 14,114,000 | 13,373,015 | ||||||
1.250%, 05/15/2050 | 18,841,000 | 17,015,778 | ||||||
1.375%, 08/15/2050 | 43,681,000 | 40,725,707 | ||||||
United States Treasury Notes | ||||||||
0.125%, 09/15/2023 | 2,200,000 | 2,195,617 | ||||||
0.250%, 05/31/2025 | 17,958,000 | 17,884,344 | ||||||
0.250%, 08/31/2025 | 42,109,000 | 41,872,138 | ||||||
0.250%, 09/30/2025 | 13,469,000 | 13,387,449 | ||||||
0.500%, 03/31/2025 | 4,250,000 | 4,282,041 | ||||||
0.500%, 08/31/2027 | 970,000 | 961,513 | ||||||
0.625%, 08/15/2030 | 45,065,000 | 44,019,352 | ||||||
1.625%, 10/31/2026 | 5,000,000 | 5,324,023 | ||||||
Total U.S. Treasury Bonds | 208,229,535 | |||||||
TOTAL GOVERNMENT BONDS | ||||||||
(Cost $209,861,399) | 208,229,535 | |||||||
MUNICIPAL BONDS (0.05%) | ||||||||
State of California | ||||||||
7.700%, 11/01/2030 | 715,000 | 715,000 | ||||||
TOTAL MUNICIPAL BONDS | ||||||||
(Cost $715,000) | 715,000 |
Shares | Value (Note 2) | |||||||
PREFERRED STOCK (0.26%) | ||||||||
Financials (0.26%) | ||||||||
Banks (0.11%) | ||||||||
Wells Fargo & Co.(e) | 60,000 | 1,498,800 | ||||||
Life Insurance (0.15%) | ||||||||
MetLife, Inc.(e) | 80,000 | 2,100,800 | ||||||
TOTAL Financials | 3,599,600 | |||||||
TOTAL PREFERRED STOCK | ||||||||
(Cost $3,500,000) | 3,599,600 |
7-Day Yield | Shares | Value (Note 2) | ||||||||||
SHORT TERM INVESTMENTS (0.22%) | ||||||||||||
Money Market Fund (0.22%) | ||||||||||||
Morgan Stanley | ||||||||||||
Institutional | ||||||||||||
Liquidity Funds - | ||||||||||||
Government | ||||||||||||
Portfolio | 0.020 | % | 2,975,270 | $ | 2,975,270 | |||||||
TOTAL SHORT TERM INVESTMENTS | ||||||||||||
(Cost $2,975,270) | 2,975,270 |
Value (Note 2) | ||||
TOTAL INVESTMENTS (97.75%) | ||||
(Cost $1,301,362,434) | $ | 1,332,722,578 | ||
Other Assets In Excess Of Liabilities (2.25%) | 30,695,345 | |||
NET ASSETS (100.00%) | $ | 1,363,417,923 |
Investment Abbreviations:
LIBOR - London Interbank Offered Rate
SOFR - Secured Overnight Financing Rate
Reference Rates:
1M US L - 1 Month LIBOR as of October 31, 2020 was 0.14%
3M US L - 3 Month LIBOR as of October 31, 2020 was 0.22%
1Y US TI - 1 Year Treasury Yield as of October 31, 2020 was 0.13%
5Y US TI - 5 Year Treasury Yield as of October 31, 2020 was 0.38%
1D US SOFR - 1 Day SOFR as of October 31, 2020 was 0.09%
(a) | Floating or variable rate security. The reference rate is described above. The rate in effect as of October 31, 2020 is based on the reference rate plus the displayed spread as of the security's last reset date. |
(b) | Issued with zero coupon. |
(c) | Step bond. Coupon changes periodically based upon a predetermined schedule. Interest rate disclosed is that which is in effect as of October 31, 2020. |
(d) | Security exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of October 31, 2020, the aggregate market value of those securities was $341,129,130, representing 25.02% of net assets. |
(e) | Perpetual maturity. This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. |
See Notes to Financial Statements.
82 | October 31, 2020
ALPS | Smith Credit Opportunities Fund
Statement of Investments | October 31, 2020 |
Shares | Value (Note 2) | |||||||
CORPORATE BONDS (86.48%) | ||||||||
Advertising & Marketing (1.13%) | ||||||||
Outfront Media Capital LLC / Outfront Media Capital Corp. | ||||||||
5.000%, 08/15/2027(a) | $ | 325,000 | $ | 308,490 | ||||
Aerospace & Defense (1.46%) | ||||||||
Huntington Ingalls Industries, Inc. | ||||||||
4.200%, 05/01/2030(a) | 125,000 | 144,566 | ||||||
Rolls-Royce PLC | ||||||||
5.750%, 10/15/2027(a) | 250,000 | 253,438 | ||||||
Total Aerospace & Defense | 398,004 | |||||||
Airlines (2.93%) | ||||||||
Alaska Airlines 2020-1 Class A Pass Through Trust | ||||||||
4.800%, 08/15/2027(a) | 375,000 | 395,367 | ||||||
United Airlines 2020-1 Class A Pass Through Trust | ||||||||
Series 20-1 | ||||||||
5.875%, 10/15/2027 | 400,000 | 402,233 | ||||||
Total Airlines | 797,600 | |||||||
Automobiles Manufacturing (4.75%) | ||||||||
Ford Motor Co. | ||||||||
5.291%, 12/08/2046 | 70,000 | 66,305 | ||||||
8.500%, 04/21/2023 | 370,000 | 408,977 | ||||||
Ford Motor Credit Co. LLC | ||||||||
3.664%, 09/08/2024 | 200,000 | 198,645 | ||||||
General Motors Co. | ||||||||
5.000%, 04/01/2035 | 30,000 | 33,297 | ||||||
5.950%, 04/01/2049 | 30,000 | 36,600 | ||||||
6.125%, 10/01/2025 | 85,000 | 99,718 | ||||||
Nissan Motor Co., Ltd. | ||||||||
4.345%, 09/17/2027(a) | 450,000 | 451,624 | ||||||
Total Automobiles Manufacturing | 1,295,166 | |||||||
Banks (5.08%) | ||||||||
CIT Group, Inc. | ||||||||
1D US SOFR + 3.827%, 06/19/2024(b) | 400,000 | 415,500 | ||||||
Citizens Financial Group, Inc. | ||||||||
4.150%, 09/28/2022(a) | 150,000 | 158,075 | ||||||
Danske Bank A/S | ||||||||
1Y US TI + 1.03%, 12/08/2023(a)(b) | 200,000 | 200,389 | ||||||
Synovus Bank/Columbus GA | ||||||||
5Y US TI + 3.625%, 10/29/2030(b) | 250,000 | 251,496 | ||||||
Truist Bank | ||||||||
5Y US TI + 1.15%, 09/17/2029(b) | 150,000 | 155,638 | ||||||
UniCredit SpA | ||||||||
5Y US TI + 4.75%, 06/30/2035(a)(b) | 200,000 | 202,341 | ||||||
Total Banks | 1,383,439 | |||||||
Cable & Satellite (1.78%) | ||||||||
CCO Holdings LLC / CCO Holdings Capital Corp. | ||||||||
4.500%, 05/01/2032(a) | 375,000 | 387,656 |
Shares | Value (Note 2) | |||||||
Charter Communications Operating LLC / Charter Communications Operating Capital | ||||||||
3.750%, 02/15/2028 | $ | 90,000 | $ | 99,303 | ||||
Total Cable & Satellite | 486,959 | |||||||
Casinos & Gaming (5.03%) | ||||||||
Boyd Gaming Corp. | ||||||||
8.625%, 06/01/2025(a) | 575,000 | 630,171 | ||||||
CCM Merger, Inc. | ||||||||
6.375%, 05/01/2026(a) | 100,000 | 102,625 | ||||||
MGM Resorts International | ||||||||
4.750%, 10/15/2028 | 650,000 | 636,594 | ||||||
Total Casinos & Gaming | 1,369,390 | |||||||
Chemicals (1.17%) | ||||||||
LYB International Finance III LLC | ||||||||
3.375%, 10/01/2040 | 160,000 | 158,337 | ||||||
3M US L + 1.00%, 10/01/2023(b) | 160,000 | 160,116 | ||||||
Total Chemicals | 318,453 | |||||||
Commercial Finance (2.94%) | ||||||||
AerCap Ireland Capital DAC / AerCap Global Aviation Trust | ||||||||
3.150%, 02/15/2024 | 70,000 | 69,595 | ||||||
4.625%, 10/15/2027 | 220,000 | 218,156 | ||||||
6.500%, 07/15/2025 | 100,000 | 110,160 | ||||||
Avolon Holdings Funding, Ltd. | ||||||||
3.250%, 02/15/2027(a) | 100,000 | 91,450 | ||||||
5.500%, 01/15/2026(a) | 100,000 | 102,339 | ||||||
Park Aerospace Holdings, Ltd. | ||||||||
5.250%, 08/15/2022(a) | 200,000 | 206,064 | ||||||
Total Commercial Finance | 797,764 | |||||||
Consumer Finance (8.35%) | ||||||||
Ally Financial, Inc. | ||||||||
1.450%, 10/02/2023 | 70,000 | 70,690 | ||||||
American Express Co. | ||||||||
Series B | ||||||||
3M US L + 3.428%(b)(c) | 500,000 | 477,815 | ||||||
Discover Financial Services | ||||||||
Series D | ||||||||
5Y US TI + 5.783% (b)(c) | 250,000 | 270,125 | ||||||
Global Payments, Inc. | ||||||||
3.200%, 08/15/2029 | 100,000 | 108,221 | ||||||
LD Holdings Group LLC | ||||||||
6.500%, 11/01/2025(a) | 250,000 | 254,375 | ||||||
OneMain Finance Corp. | ||||||||
8.875%, 06/01/2025 | 500,000 | 550,924 | ||||||
Quicken Loans LLC | ||||||||
3.625%, 03/01/2029(a) | 230,000 | 226,981 | ||||||
5.250%, 01/15/2028(a) | 300,000 | 314,141 | ||||||
Total Consumer Finance | 2,273,272 | |||||||
Department Stores (2.01%) | ||||||||
Nordstrom, Inc. | ||||||||
8.750%, 05/15/2025(a) | 500,000 | 547,830 |
83 | October 31, 2020
ALPS | Smith Credit Opportunities Fund
Statement of Investments | October 31, 2020 |
Shares | Value (Note 2) | |||||||
Diversified Banks (0.54%) | ||||||||
Bank of America Corp. | ||||||||
1D US SOFR + 1.53%, 07/23/2031(b) | $ | 150,000 | $ | 148,192 | ||||
Entertainment Content (0.87%) | ||||||||
WMG Acquisition Corp. | ||||||||
Series NOV | ||||||||
3.000%, 02/15/2031(a) | 250,000 | 238,125 | ||||||
Exploration & Production (0.89%) | ||||||||
Antero Resources Corp. | ||||||||
5.375%, 11/01/2021 | 130,000 | 130,585 | ||||||
Concho Resources, Inc. | ||||||||
3.750%, 10/01/2027 | 100,000 | 111,314 | ||||||
Total Exploration & Production | 241,899 | |||||||
Financial Services (6.95%) | ||||||||
Bank of New York Mellon Corp. | ||||||||
Series G | ||||||||
5Y US TI + 4.358%(b)(c) | 250,000 | 268,125 | ||||||
Goldman Sachs Group, Inc. | ||||||||
3.800%, 03/15/2030 | 125,000 | 144,284 | ||||||
Golub Capital BDC, Inc. | ||||||||
3.375%, 04/15/2024 | 470,000 | 469,111 | ||||||
Jefferies Group LLC | ||||||||
2.750%, 10/15/2032 | 75,000 | 76,706 | ||||||
KKR Group Finance Co. VIII LLC | ||||||||
3.500%, 08/25/2050(a) | 130,000 | 131,293 | ||||||
LPL Holdings, Inc. | ||||||||
5.750%, 09/15/2025(a) | 522,000 | 540,270 | ||||||
Morgan Stanley | ||||||||
Series GMTN | ||||||||
1D US SOFR + 1.143%, 01/22/2031(b) | 250,000 | 267,224 | ||||||
Total Financial Services | 1,897,013 | |||||||
Food & Beverage (2.87%) | ||||||||
Anheuser-Busch InBev Worldwide, Inc. | ||||||||
4.900%, 02/01/2046 | 220,000 | 270,047 | ||||||
Chobani LLC / Chobani Finance Corp., Inc. | ||||||||
4.625%, 11/15/2028(a) | 100,000 | 100,580 | ||||||
Kraft Heinz Foods Co. | ||||||||
4.375%, 06/01/2046 | 400,000 | 409,620 | ||||||
Total Food & Beverage | 780,247 | |||||||
Health Care Facilities & Services (2.80%) | ||||||||
Acadia Healthcare Co., Inc. | ||||||||
5.000%, 04/15/2029(a) | 200,000 | 206,560 | ||||||
HCA, Inc. | ||||||||
5.250%, 06/15/2049 | 125,000 | 151,927 | ||||||
5.875%, 02/15/2026 | 200,000 | 226,250 | ||||||
Jaguar Holding Co. II / PPD Development LP | ||||||||
4.625%, 06/15/2025(a) | 170,000 | 175,885 | ||||||
Total Health Care Facilities & Services | 760,622 |
Shares | Value (Note 2) | |||||||
Home & Office Products Manufacturing (0.80%) | ||||||||
Newell Brands, Inc. | ||||||||
4.875%, 06/01/2025 | $ | 200,000 | $ | 216,810 | ||||
Homebuilders (1.21%) | ||||||||
Shea Homes LP / Shea Homes Funding Corp. | ||||||||
4.750%, 02/15/2028(a) | 125,000 | 126,484 | ||||||
4.750%, 04/01/2029(a) | 200,000 | 203,500 | ||||||
Total Homebuilders | 329,984 | |||||||
Medical Equipment & Devices Manufacturing (1.52%) | ||||||||
Avantor Funding, Inc. | ||||||||
4.625%, 07/15/2028(a) | 400,000 | 414,980 | ||||||
Pharmaceuticals (5.01%) | ||||||||
AbbVie, Inc. | ||||||||
4.250%, 11/21/2049(a) | 205,000 | 239,285 | ||||||
Bausch Health Cos., Inc. | ||||||||
6.125%, 04/15/2025(a) | 450,000 | 463,051 | ||||||
Elanco Animal Health, Inc. | ||||||||
4.912%, 08/27/2021 | 25,000 | 25,609 | ||||||
5.900%, 08/28/2028 | 200,000 | 233,415 | ||||||
Upjohn, Inc. | ||||||||
2.700%, 06/22/2030(a) | 155,000 | 160,152 | ||||||
3.850%, 06/22/2040(a) | 170,000 | 182,809 | ||||||
4.000%, 06/22/2050(a) | 60,000 | 63,141 | ||||||
Total Pharmaceuticals | 1,367,462 | |||||||
Pipeline (7.86%) | ||||||||
Buckeye Partners LP | ||||||||
3.950%, 12/01/2026 | 170,000 | 158,100 | ||||||
4.150%, 07/01/2023 | 200,000 | 197,375 | ||||||
4.350%, 10/15/2024 | 100,000 | 97,313 | ||||||
Energy Transfer Operating LP | ||||||||
Series B | ||||||||
3M US L + 4.155% (b)(c) | 375,000 | 266,904 | ||||||
4.950%, 06/15/2028 | 125,000 | 134,279 | ||||||
Midwest Connector Capital Co. LLC | ||||||||
3.900%, 04/01/2024(a) | 250,000 | 253,639 | ||||||
4.625%, 04/01/2029(a) | 430,000 | 429,823 | ||||||
Sabine Pass Liquefaction LLC | ||||||||
4.500%, 05/15/2030(a) | 350,000 | 391,693 | ||||||
Western Midstream Operating LP | ||||||||
3M US L + 1.85%, 01/13/2023(b) | 230,000 | 214,046 | ||||||
Total Pipeline | 2,143,172 | |||||||
Property & Casualty Insurance (0.08%) | ||||||||
Fairfax US, Inc. | ||||||||
4.875%, 08/13/2024(a) | 20,000 | 21,415 | ||||||
Publishing & Broadcasting (4.62%) | ||||||||
Gray Television, Inc. | ||||||||
4.750%, 10/15/2030(a) | 550,000 | 543,125 | ||||||
Nexstar Broadcasting, Inc. | ||||||||
4.750%, 11/01/2028(a) | 500,000 | 504,688 |
84 | October 31, 2020
ALPS | Smith Credit Opportunities Fund
Statement of Investments | October 31, 2020 |
Shares | Value (Note 2) | |||||||
TEGNA, Inc. | ||||||||
4.750%, 03/15/2026(a) | $ | 200,000 | $ | 205,750 | ||||
Total Publishing & Broadcasting | 1,253,563 | |||||||
Railroad (0.78%) | ||||||||
Westinghouse Air Brake Technologies Corp. | ||||||||
3.200%, 06/15/2025 | 200,000 | 213,267 | ||||||
Real Estate (2.22%) | ||||||||
Cushman & Wakefield US Borrower LLC | ||||||||
6.750%, 05/15/2028(a) | 250,000 | 266,719 | ||||||
GLP Capital LP / GLP Financing II, Inc. | ||||||||
5.375%, 11/01/2023 | 125,000 | 134,158 | ||||||
MGM Growth Properties Operating Partnership LP / MGP Finance Co.- Issuer, Inc. | ||||||||
4.625%, 06/15/2025(a) | 200,000 | 203,892 | ||||||
Total Real Estate | 604,769 | |||||||
Restaurants (1.31%) | ||||||||
1011778 BC ULC / New Red Finance, Inc. | ||||||||
4.250%, 05/15/2024(a) | 350,000 | 357,525 | ||||||
Retail - Consumer Staples (1.49%) | ||||||||
United Natural Foods, Inc. | ||||||||
6.750%, 10/15/2028(a) | 400,000 | 405,500 | ||||||
Semiconductors (0.38%) | ||||||||
Microchip Technology, Inc. | ||||||||
2.670%, 09/01/2023(a) | 100,000 | 103,831 | ||||||
Software & Services (2.68%) | ||||||||
Black Knight InfoServ LLC | ||||||||
3.625%, 09/01/2028(a) | 200,000 | 202,750 | ||||||
Leidos, Inc. | ||||||||
2.300%, 02/15/2031(a) | 275,000 | 273,123 | ||||||
Shift4 Payments LLC / Shift4 Payments Finance Sub, Inc. | ||||||||
4.625%, 11/01/2026(a) | 250,000 | 254,063 | ||||||
Total Software & Services | 729,936 | |||||||
Supermarkets & Pharmacies (1.02%) | ||||||||
Albertsons Cos. Inc / Safeway, Inc. / New Albertsons LP / Albertsons LLC | ||||||||
3.500%, 02/15/2023(a) | 175,000 | 178,019 | ||||||
SEG Holding LLC / SEG Finance Corp. | ||||||||
5.625%, 10/15/2028(a) | 100,000 | 102,130 | ||||||
Total Supermarkets & Pharmacies | 280,149 | |||||||
Waste & Environment Services & Equipment (0.75%) | ||||||||
GFL Environmental, Inc. | ||||||||
4.250%, 06/01/2025(a) | 200,000 | 204,375 | ||||||
Wireless Telecommunications Services (1.96%) | ||||||||
AT&T, Inc. | ||||||||
4.650%, 06/01/2044 | 155,000 | 172,811 |
Shares | Value (Note 2) | |||||||||||
T-Mobile USA, Inc. | ||||||||||||
2.550%, 02/15/2031(a) | $ | 355,000 | $ | 361,734 | ||||||||
Total Wireless Telecommunications Services | 534,545 | |||||||||||
Wireline Telecommunications Services (1.24%) | ||||||||||||
CenturyLink, Inc. | ||||||||||||
Series T | ||||||||||||
5.800%, 03/15/2022 | 325,000 | 338,609 | ||||||||||
TOTAL CORPORATE BONDS | ||||||||||||
(Cost $23,676,738) | 23,562,357 |
Shares | (Value Note 2) | |||||||||||
GOVERNMENT BONDS (9.95%) | ||||||||||||
U.S. Treasury Bonds (9.95%) | ||||||||||||
United States Treasury Bonds | ||||||||||||
1.250%, 05/15/2050 | 235,000 | 212,234 | ||||||||||
United States Treasury Notes | ||||||||||||
0.125%, 08/31/2022 | 454,000 | 453,823 | ||||||||||
0.125%, 09/30/2022 | 524,000 | 523,754 | ||||||||||
0.125%, 09/15/2023 | 928,000 | 926,152 | ||||||||||
0.250%, 08/31/2025 | 179,000 | 177,993 | ||||||||||
0.250%, 09/30/2025 | 419,000 | 416,463 | ||||||||||
Total U.S. Treasury Bonds | 2,710,419 | |||||||||||
TOTAL GOVERNMENT BONDS | ||||||||||||
(Cost $2,718,973) | 2,710,419 | |||||||||||
Shares | Value (Note 2) | |||||||||||
PREFERRED STOCK (1.69%) | ||||||||||||
Financials (1.69%) | ||||||||||||
Banks (1.14%) | ||||||||||||
GMAC Capital Trust I(b) | 12,000 | 308,880 | ||||||||||
Consumer Finance (0.55%) | ||||||||||||
Synchrony Financial(c) | 6,000 | 150,540 | ||||||||||
TOTAL Financials | 459,420 | |||||||||||
TOTAL PREFERRED STOCK | ||||||||||||
(Cost $451,840) | 459,420 | |||||||||||
7-Day Yield | Shares | Value (Note 2) | ||||||||||
SHORT TERM INVESTMENTS (0.97%) | ||||||||||||
Money Market Fund (0.97%) | ||||||||||||
Morgan Stanley Institutional Liquidity Funds - Government Portfolio | 0.020 | % | 263,967 | 263,967 | ||||||||
TOTAL SHORT TERM INVESTMENTS | ||||||||||||
(Cost $263,967) | 263,967 |
85 | October 31, 2020
ALPS | Smith Credit Opportunities Fund
Statement of Investments | October 31, 2020 |
7-Day Yield | Shares | Value (Note 2) | ||||||||||
TOTAL INVESTMENTS (99.09%) | ||||||||||||
(Cost $27,111,518) | $ | 26,996,163 | ||||||||||
Other Assets In Excess Of Liabilities (0.91%) | 248,313 | |||||||||||
NET ASSETS (100.00%) | $ | 27,244,476 |
Investment Abbreviations:
LIBOR - London Interbank Offered Rate
SOFR - Secured Overnight Financing Rate
Reference Rates:
1M US L - 1 Month LIBOR as of October 31, 2020 was 0.14%
3M US L - 3 Month LIBOR as of October 31, 2020 was 0.22%
1Y US TI - 1 Year Treasury Yield as of October 31, 2020 was 0.13%
10Y US TI - 10 Year Treasury Yield as of October 31, 2020 was 0.88%
1D US SOFR - 1 Day SOFR as of October 31, 2020 was 0.09%
(a) | Security exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of October 31, 2020, the aggregate market value of those securities was $13,487,831, representing 49.51% of net assets. |
(b) | Floating or variable rate security. The reference rate is described above. The rate in effect as of October 31, 2020 is based on the reference rate plus the displayed spread as of the security's last reset date. |
(c) | Perpetual maturity. This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. |
See Notes to Financial Statements.
86 | October 31, 2020
ALPS | Smith Balanced Opportunity Fund
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
COLLATERALIZED MORTGAGE OBLIGATIONS (9.01%) | ||||||||
Fannie Mae | ||||||||
Series 1997-10, Class FA, | ||||||||
1M US L + 0.60%, 03/18/2027(a) | $ | 13,434 | $ | 13,152 | ||||
Series 1999-52, Class NF, | ||||||||
1M US L + 1.15%, 10/25/2023(a) | 12,280 | 12,399 | ||||||
Series 2002-22, Class GC, | ||||||||
6.500%, 04/25/2032 | 11,579 | 13,823 | ||||||
Series 2002-58, Class PG, | ||||||||
6.000%, 09/25/2032 | 19,016 | 22,473 | ||||||
Series 2003-117, Class KB, | ||||||||
6.000%, 12/25/2033 | 10,180 | 12,030 | ||||||
Series 2003-130, Class HF, | ||||||||
1M US L + 0.45%, 12/25/2033(a) | 15,478 | 15,466 | ||||||
Series 2004-60, Class JC, | ||||||||
5.500%, 04/25/2034 | 22,601 | 25,412 | ||||||
Series 2007-55, Class PH, | ||||||||
6.000%, 06/25/2047 | 38,571 | 44,651 | ||||||
Series 2009-12, Class LC, | ||||||||
8.931%, 06/25/2037(a) | 24,172 | 30,658 | ||||||
Series 2009-51, Class BZ, | ||||||||
4.500%, 07/25/2039 | 44,312 | 48,758 | ||||||
Series 2010-98, Class BH, | ||||||||
5.500%, 09/25/2040 | 45,078 | 51,696 | ||||||
Series 2013-101, Class JA, | ||||||||
4.000%, 09/25/2043 | 20,998 | 21,299 | ||||||
Series 2013-103, Class H, | ||||||||
4.500%, 03/25/2038 | 33,109 | 33,586 | ||||||
Series 2013-18, Class MY, | ||||||||
3.000%, 03/25/2033 | 15,000 | 16,598 | ||||||
Series 2013-61, Class NY, | ||||||||
3.000%, 06/25/2033 | 35,000 | 39,338 | ||||||
Series 2014-21, Class MA, | ||||||||
2.000%, 09/25/2041 | 29,213 | 30,175 | ||||||
431,514 | ||||||||
Freddie Mac | ||||||||
Series 1996-1843, Class Z, | ||||||||
7.000%, 04/15/2026 | 14,437 | 15,520 | ||||||
Series 2002-2538, Class FB, | ||||||||
1M US L + 0.40%, 12/15/2032(a) | 11,210 | 11,218 | ||||||
Series 2003-2626, Class FQ, | ||||||||
1M US L + 1.00%, 06/15/2023(a) | 12,529 | 12,572 | ||||||
Series 2003-2635, Class E, | ||||||||
3.500%, 04/15/2033 | 10,220 | 10,370 | ||||||
Series 2005-2977, Class AT, | ||||||||
4.500%, 05/15/2025 | 22,347 | 23,463 | ||||||
Series 2005-2993, Class TF, | ||||||||
1M US L + 0.35%, 06/15/2025(a) | 11,287 | 11,268 | ||||||
Series 2006-3174, Class LF, | ||||||||
1M US L + 0.35%, 05/15/2036(a) | 19,507 | 19,573 | ||||||
Series 2008-3409, Class DB, | ||||||||
6.000%, 01/15/2038 | 29,562 | 34,212 | ||||||
Series 2009-3572, Class KT, | ||||||||
4.500%, 09/15/2039 | 22,855 | 25,395 | ||||||
Series 2010-3645, Class WD, | ||||||||
4.500%, 02/15/2040 | 19,000 | 21,286 |
Principal Amount | Value (Note 2) | |||||||
Series 2010-3699, Class LC, | ||||||||
4.000%, 03/15/2040 | $ | 10,397 | $ | 11,545 | ||||
Series 2010-3721, Class FB, | ||||||||
1M US L + 0.50%, 09/15/2040(a) | 18,288 | 18,488 | ||||||
Series 2010-3759, Class PY, | ||||||||
4.000%, 11/15/2040 | 25,000 | 28,329 | ||||||
Series 2010-3770, Class JZ, | ||||||||
4.000%, 12/15/2040 | 29,619 | 33,415 | ||||||
Series 2011-3954, Class PG, | ||||||||
2.500%, 07/15/2041 | 52,701 | 54,753 | ||||||
Series 2012-3987, Class LP, | ||||||||
3.500%, 01/15/2042 | 26,000 | 29,517 | ||||||
Series 2012-4032, Class AD, | ||||||||
2.000%, 10/15/2041 | 37,034 | 37,837 | ||||||
Series 2012-4064, Class TL, | ||||||||
4.000%, 03/15/2042 | 17,183 | 17,690 | ||||||
Series 2013-4226, Class GZ, | ||||||||
3.000%, 07/15/2043 | 26,095 | 27,729 | ||||||
Series 2015-4498, Class JA, | ||||||||
2.500%, 04/15/2037 | 71,100 | 73,040 | ||||||
Series 2017-4734, Class A, | ||||||||
3.000%, 07/15/2042 | 22,651 | 22,767 | ||||||
539,987 | ||||||||
Ginnie Mae | ||||||||
Series 2005-91, Class PD, | ||||||||
5.500%, 12/20/2035 | 16,859 | 19,390 | ||||||
Series 2007-70, Class FC, | ||||||||
1M US L + 0.465%, 11/20/2037(a) | 27,755 | 27,903 | ||||||
Series 2008-2, Class PC, | ||||||||
4.750%, 01/20/2038 | 11,519 | 12,908 | ||||||
Series 2008-46, Class FA, | ||||||||
1M US L + 0.60%, 05/20/2038(a) | 11,513 | 11,590 | ||||||
Series 2008-60, Class JP, | ||||||||
5.500%, 07/20/2038 | 31,000 | 36,209 | ||||||
Series 2011-H23, Class HA, | ||||||||
3.000%, 12/20/2061 | 17,735 | 18,192 | ||||||
Series 2012-39, Class GA, | ||||||||
3.000%, 10/16/2040 | 14,037 | 14,707 | ||||||
Series 2013-149, Class BP, | ||||||||
3.500%, 10/20/2043 | 50,000 | 56,546 | ||||||
Series 2018-21, Class LK, | ||||||||
2.000%, 08/20/2044 | 28,653 | 28,734 | ||||||
Series 2019-162, Class GA, | ||||||||
3.000%, 10/20/2049 | 50,869 | 51,807 | ||||||
Series 2019-29, Class JB, | ||||||||
4.500%, 12/20/2046 | 15,809 | 16,259 | ||||||
Series 2020-5, Class LC, | ||||||||
3.500%, 10/20/2049 | 28,200 | 28,647 | ||||||
322,892 | ||||||||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | ||||||||
(Cost $1,272,770) | 1,294,393 |
87 | October 31, 2020
ALPS | Smith Balanced Opportunity Fund
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
MORTGAGE-BACKED SECURITIES (1.47%) | ||||||||
Fannie Mae Pool | ||||||||
Series 2012-, | ||||||||
2.100%, 12/01/2027 | $ | 38,087 | $ | 39,733 | ||||
Series 2015-, | ||||||||
2.690%, 05/01/2027 | 22,239 | 24,257 | ||||||
2.810%, 04/01/2025 | 20,000 | 21,606 | ||||||
Series 2017-AN6670, | ||||||||
3.210%, 09/01/2027 | 29,961 | 31,106 | ||||||
Series 2018-, | ||||||||
3.820%, 07/01/2027 | 34,909 | 39,981 | ||||||
Series 2018-109741, | ||||||||
3.730%, 11/01/2025 | 50,000 | 54,219 | ||||||
210,902 | ||||||||
TOTAL MORTGAGE-BACKED SECURITIES | ||||||||
(Cost $209,533) | 210,902 | |||||||
CORPORATE BONDS (15.87%) | ||||||||
Aerospace & Defense (0.20%) | ||||||||
Huntington Ingalls Industries, Inc. | ||||||||
4.200%, 05/01/2030(b) | 25,000 | 28,913 | ||||||
Airlines (0.36%) | ||||||||
Alaska Airlines 2020-1 Class A Pass Through Trust 4.800%, 08/15/2027(b) | 25,000 | 26,357 | ||||||
United Airlines 2020-1 Class A Pass Through Trust Series 20-1 5.875%, 10/15/2027 | 25,000 | 25,140 | ||||||
Total Airlines | 51,497 | |||||||
Automobiles Manufacturing (0.93%) | ||||||||
Ford Motor Co. | ||||||||
5.291%, 12/08/2046 | 20,000 | 18,944 | ||||||
8.500%, 04/21/2023 | 45,000 | 49,741 | ||||||
General Motors Co. | ||||||||
5.000%, 04/01/2035 | 10,000 | 11,099 | ||||||
5.950%, 04/01/2049 | 20,000 | 24,400 | ||||||
6.125%, 10/01/2025 | 25,000 | 29,329 | ||||||
Total Automobiles Manufacturing | 133,513 | |||||||
Banks (0.86%) | ||||||||
CIT Group, Inc. | ||||||||
1D US SOFR + 3.827%, 06/19/2024(a) | 25,000 | 25,969 | ||||||
Citizens Financial Group, Inc. | ||||||||
4.150%, 09/28/2022(b) | 30,000 | 31,615 | ||||||
Truist Bank | ||||||||
5Y US TI + 1.15%, 09/17/2029(a) | 25,000 | 25,940 | ||||||
Wells Fargo & Co. | ||||||||
4.100%, 06/03/2026 | 35,000 | 39,595 | ||||||
Total Banks | 123,119 | |||||||
Biotechnology (0.17%) | ||||||||
Royalty Pharma PLC | ||||||||
0.750%, 09/02/2023(b) | 25,000 | 25,006 |
Principal Amount | Value (Note 2) | |||||||
Cable & Satellite (0.41%) | ||||||||
Charter Communications Operating LLC / Charter Communications Operating Capital 3.750%, 02/15/2028 | $ | 35,000 | $ | 38,618 | ||||
Time Warner Cable LLC | ||||||||
4.000%, 09/01/2021 | 20,000 | 20,395 | ||||||
Total Cable & Satellite | 59,013 | |||||||
Chemicals (0.28%) | ||||||||
LYB International Finance III LLC | ||||||||
1.250%, 10/01/2025 | 5,000 | 5,018 | ||||||
2.250%, 10/01/2030 | 5,000 | 4,994 | ||||||
3.375%, 10/01/2040 | 15,000 | 14,844 | ||||||
3M US L + 1.00%, 10/01/2023(a) | 15,000 | 15,012 | ||||||
Total Chemicals | 39,868 | |||||||
Commercial Finance (0.33%) | ||||||||
AerCap Ireland Capital DAC / AerCap Global Aviation Trust | ||||||||
3.150%, 02/15/2024 | 10,000 | 9,942 | ||||||
4.625%, 10/15/2027 | 10,000 | 9,916 | ||||||
6.500%, 07/15/2025 | 25,000 | 27,540 | ||||||
Total Commercial Finance | 47,398 | |||||||
Consumer Finance (0.96%) | ||||||||
American Express Co. Series B 3M US L + 3.428%(a)(c) | 50,000 | 47,781 | ||||||
Discover Financial Services Series D 5Y US TI + 5.783%(a)(c) | 15,000 | 16,208 | ||||||
Global Payments, Inc. | ||||||||
3.200%, 08/15/2029 | 25,000 | 27,055 | ||||||
OneMain Finance Corp. | ||||||||
8.875%, 06/01/2025 | 25,000 | 27,546 | ||||||
Quicken Loans LLC | ||||||||
3.625%, 03/01/2029(b) | 20,000 | 19,738 | ||||||
Total Consumer Finance | 138,328 | |||||||
Containers & Packaging (0.11%) | ||||||||
WRKCo, Inc. | ||||||||
3.000%, 06/15/2033 | 15,000 | 15,985 | ||||||
Diversified Banks (1.27%) | ||||||||
Bank of America Corp. | ||||||||
4.450%, 03/03/2026 | 25,000 | 28,786 | ||||||
1D US SOFR + 1.53%, 07/23/2031(a) | 50,000 | 49,396 | ||||||
1D US SOFR + 1.88%, 10/24/2051(a) | 15,000 | 14,875 | ||||||
Citigroup, Inc. | ||||||||
4.300%, 11/20/2026 | 30,000 | 34,453 |
88 | October 31, 2020
ALPS | Smith Balanced Opportunity Fund
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
JPMorgan Chase & Co. | ||||||||
1D US SOFR + 1.455%, 06/01/2024(a) | $ | 30,000 | $ | 30,660 | ||||
1D US SOFR + 2.04%, 04/22/2031(a) | 25,000 | 26,379 | ||||||
Total Diversified Banks | 184,549 | |||||||
Electrical Equipment Manufacturing (0.34%) | ||||||||
Acuity Brands Lighting, Inc. | ||||||||
2.150%, 12/15/2030 | 50,000 | 48,868 | ||||||
Exploration & Production (0.19%) | ||||||||
Concho Resources, Inc. | ||||||||
3.750%, 10/01/2027 | 25,000 | 27,829 | ||||||
Financial Services (2.13%) | ||||||||
Ameriprise Financial, Inc. | ||||||||
3.000%, 04/02/2025 | 20,000 | 21,687 | ||||||
Franklin Resources, Inc. | ||||||||
1.600%, 10/30/2030 | 15,000 | 14,713 | ||||||
Goldman Sachs Group, Inc. | ||||||||
3.500%, 04/01/2025 | 30,000 | 33,060 | ||||||
3.800%, 03/15/2030 | 25,000 | 28,857 | ||||||
Jefferies Group LLC | ||||||||
2.750%, 10/15/2032 | 20,000 | 20,455 | ||||||
5.125%, 01/20/2023 | 15,000 | 16,345 | ||||||
KKR Group Finance Co. VIII LLC | ||||||||
3.500%, 08/25/2050(b) | 30,000 | 30,299 | ||||||
Morgan Stanley | ||||||||
Series GMTN | ||||||||
1D US SOFR + 1.143%, 01/22/2031(a) | 65,000 | 69,477 | ||||||
Series I | ||||||||
1D US SOFR + 0.745%, 10/21/2025(a) | 10,000 | 9,984 | ||||||
Raymond James Financial, Inc. | ||||||||
4.650%, 04/01/2030 | 50,000 | �� | 60,551 | |||||
Total Financial Services | 305,428 | |||||||
Food & Beverage (0.62%) | ||||||||
Anheuser-Busch InBev Worldwide, Inc. | ||||||||
4.900%, 02/01/2046 | 10,000 | 12,275 | ||||||
Hormel Foods Corp. | ||||||||
1.800%, 06/11/2030 | 25,000 | 25,579 | ||||||
Smithfield Foods, Inc. | ||||||||
3.000%, 10/15/2030(b) | 50,000 | 51,035 | ||||||
Total Food & Beverage | 88,889 | |||||||
Forest & Paper Products Manufacturing (0.22%) | ||||||||
Georgia-Pacific LLC | ||||||||
2.300%, 04/30/2030(b) | 30,000 | 31,405 | ||||||
Health Care Facilities & Services (0.62%) | ||||||||
HCA, Inc. | ||||||||
4.500%, 02/15/2027 | 25,000 | 28,297 | ||||||
5.250%, 06/15/2049 | 25,000 | 30,386 |
Principal Amount | Value (Note 2) | |||||||
Jaguar Holding Co. II / PPD Development LP | ||||||||
4.625%, 06/15/2025(b) | $ | 30,000 | $ | 31,039 | ||||
Total Health Care Facilities & Services | 89,722 | |||||||
Industrial Other (0.17%) | ||||||||
Honeywell International, Inc. | ||||||||
0.483%, 08/19/2022 | 25,000 | 25,035 | ||||||
Mass Merchants (0.17%) | ||||||||
Costco Wholesale Corp. | ||||||||
1.600%, 04/20/2030 | 25,000 | 25,262 | ||||||
�� | ||||||||
Metals & Mining (0.19%) | ||||||||
Steel Dynamics, Inc. | ||||||||
3.250%, 01/15/2031 | 25,000 | 27,036 | ||||||
Pharmaceuticals (1.75%) | ||||||||
AbbVie, Inc. | ||||||||
2.950%, 11/21/2026(b) | 25,000 | 27,321 | ||||||
4.250%, 11/21/2049(b) | 25,000 | 29,181 | ||||||
Bausch Health Cos., Inc. | ||||||||
6.125%, 04/15/2025(b) | 50,000 | 51,450 | ||||||
Elanco Animal Health, Inc. | ||||||||
4.912%, 08/27/2021 | 25,000 | 25,609 | ||||||
Johnson & Johnson | ||||||||
2.100%, 09/01/2040 | 25,000 | 24,505 | ||||||
Upjohn, Inc. | ||||||||
1.650%, 06/22/2025(b) | 60,000 | 61,326 | ||||||
3.850%, 06/22/2040(b) | 30,000 | 32,260 | ||||||
Total Pharmaceuticals | 251,652 | |||||||
Pipeline (0.18%) | ||||||||
Midwest Connector Capital Co. LLC | ||||||||
3.900%, 04/01/2024(b) | 25,000 | 25,364 | ||||||
Publishing & Broadcasting (0.18%) | ||||||||
Nexstar Broadcasting, Inc. | ||||||||
4.750%, 11/01/2028(b) | 25,000 | 25,234 | ||||||
Railroad (0.37%) | ||||||||
Westinghouse Air Brake Technologies Corp. | ||||||||
3.200%, 06/15/2025 | 50,000 | 53,317 | ||||||
Refining & Marketing (0.54%) | ||||||||
Marathon Petroleum Corp. | ||||||||
4.700%, 05/01/2025 | 25,000 | 27,776 | ||||||
Valero Energy Corp. | ||||||||
3M US L + 1.15%, 09/15/2023(a) | 50,000 | 49,986 | ||||||
Total Refining & Marketing | 77,762 | |||||||
Retail - Consumer Discretionary (0.14%) | ||||||||
Genuine Parts Co. | ||||||||
1.875%, 11/01/2030 | 10,000 | 9,798 |
89 | October 31, 2020
ALPS | Smith Balanced Opportunity Fund
Statement of Investments | October 31, 2020 |
Principal Amount | Value (Note 2) | |||||||
Tractor Supply Co. | ||||||||
1.750%, 11/01/2030 | $ | 10,000 | $ | 9,818 | ||||
Total Retail - Consumer Discretionary | 19,616 | |||||||
Semiconductors (0.18%) | ||||||||
Microchip Technology, Inc. | ||||||||
2.670%, 09/01/2023(b) | 25,000 | 25,958 | ||||||
Software & Services (0.41%) | ||||||||
Leidos, Inc. | ||||||||
4.375%, 05/15/2030(b) | 50,000 | 58,263 | ||||||
Transportation & Logistics (0.35%) | ||||||||
FedEx Corp. 2020-1 Class AA Pass Through Trust | ||||||||
1.875%, 02/20/2034 | 50,000 | 50,229 | ||||||
Utilities (0.18%) | ||||||||
Dominion Energy, Inc. | ||||||||
4.104%, 04/01/2021(d) | 25,000 | 25,375 | ||||||
Waste & Environment Services & Equipment (0.18%) | ||||||||
GFL Environmental, Inc. | ||||||||
4.250%, 06/01/2025(b) | 25,000 | 25,547 | ||||||
Wireless Telecommunications Services (0.88%) | ||||||||
AT&T, Inc. | ||||||||
4.300%, 12/15/2042 | 50,000 | 55,628 | ||||||
T-Mobile USA, Inc. | ||||||||
2.050%, 02/15/2028(b) | 30,000 | 30,397 | ||||||
2.250%, 11/15/2031(b) | 5,000 | 4,963 | ||||||
2.550%, 02/15/2031(b) | 20,000 | 20,379 | ||||||
3.300%, 02/15/2051(b) | 10,000 | 9,672 | ||||||
3.600%, 11/15/2060(b) | 5,000 | 4,903 | ||||||
Total Wireless Telecommunications Services | 125,942 | |||||||
TOTAL CORPORATE BONDS | ||||||||
(Cost $2,296,966) | 2,280,922 |
Shares | Value (Note 2) | |||||||
COMMON STOCKS (51.16%) | ||||||||
Communications (3.72%) | ||||||||
Media (2.99%) | ||||||||
Alphabet, Inc., Class A(e) | 127 | 205,246 | ||||||
Facebook, Inc., Class A(e) | 648 | 170,495 | ||||||
Walt Disney Co. | 438 | 53,108 | ||||||
428,849 | ||||||||
Telecommunications (0.73%) | ||||||||
AT&T, Inc. | 3,893 | 105,189 | ||||||
TOTAL Communications | 534,038 | |||||||
Consumer Discretionary (6.86%) | ||||||||
Consumer Discretionary Products (1.98%) | ||||||||
Brunswick Corp. | 993 | 63,264 |
Shares | Value (Note 2) | |||||||
Lennar Corp., Class A | 696 | $ | 48,880 | |||||
Masco Corp. | 1,253 | 67,161 | ||||||
Scotts Miracle-Gro Co. | 429 | 64,371 | ||||||
YETI Holdings, Inc.(e) | 808 | 39,980 | ||||||
283,656 | ||||||||
Consumer Discretionary Services (1.65%) | ||||||||
Las Vegas Sands Corp. | 1,329 | 63,871 | ||||||
McDonald's Corp. | 410 | 87,330 | ||||||
Starbucks Corp. | 973 | 84,612 | ||||||
235,813 | ||||||||
Gaming, Lodging & Restaurants (0.36%) | ||||||||
Marriott International, Inc., Class A | 562 | 52,199 | ||||||
Retail & Whsle - Discretionary (2.87%) | ||||||||
Amazon.com, Inc.(e) | 109 | 330,941 | ||||||
Lowe's Cos., Inc. | 514 | 81,263 | ||||||
412,204 | ||||||||
TOTAL Consumer Discretionary | 983,872 | |||||||
Consumer Staples (5.59%) | ||||||||
Consumer Staple Products (2.82%) | ||||||||
Estee Lauder Cos., Inc., Class A | 647 | 142,120 | ||||||
Procter & Gamble Co. | 1,515 | 207,707 | ||||||
Reckitt Benckiser Group PLC, ADR | 3,148 | 55,562 | ||||||
405,389 | ||||||||
Retail & Wholesale - Staples (2.77%) | ||||||||
ITOCHU Corp., ADR | 1,096 | 52,827 | ||||||
Target Corp. | 1,087 | 165,463 | ||||||
Walmart, Inc. | 1,306 | 181,208 | ||||||
399,498 | ||||||||
TOTAL Consumer Staples | 804,887 | |||||||
Energy (0.53%) | ||||||||
Oil & Gas (0.53%) | ||||||||
Enbridge, Inc. | 2,757 | 75,983 | ||||||
TOTAL Energy | 75,983 | |||||||
Financials (4.90%) | ||||||||
Banking (1.56%) | ||||||||
JPMorgan Chase & Co. | 2,284 | 223,923 | ||||||
Financial Services (1.66%) | ||||||||
Intercontinental Exchange, Inc. | 986 | 93,078 | ||||||
LPL Financial Holdings, Inc. | 927 | 74,095 | ||||||
T Rowe Price Group, Inc. | 554 | 70,170 | ||||||
237,343 |
90 | October 31, 2020
ALPS | Smith Balanced Opportunity Fund
Statement of Investments | October 31, 2020 |
Shares | Value (Note 2) | |||||||
Insurance (1.68%) | ||||||||
Assurant, Inc. | 690 | $ | 85,815 | |||||
Prudential Financial, Inc. | 1,062 | 67,989 | ||||||
Reinsurance Group of America, Inc. | 871 | 87,989 | ||||||
241,793 | ||||||||
TOTAL Financials | 703,059 | |||||||
Health Care (7.51%) | ||||||||
Health Care (7.51%) | ||||||||
Abbott Laboratories | 1,317 | 138,430 | ||||||
Anthem, Inc. | 424 | 115,667 | ||||||
AstraZeneca PLC, ADR | 1,524 | 76,444 | ||||||
Danaher Corp. | 596 | 136,806 | ||||||
Medtronic PLC | 1,340 | 134,764 | ||||||
Thermo Fisher Scientific, Inc. | 285 | 134,839 | ||||||
UnitedHealth Group, Inc. | 671 | 204,749 | ||||||
Zoetis, Inc. | 866 | 137,304 | ||||||
1,079,003 | ||||||||
TOTAL Health Care | 1,079,003 | |||||||
Industrials (6.19%) | ||||||||
Electrical Equipment Manufacturing (0.61%) | ||||||||
TE Connectivity, Ltd. | 902 | 87,386 | ||||||
Industrial Products (4.25%) | ||||||||
Caterpillar, Inc. | 519 | 81,509 | ||||||
Cummins, Inc. | 205 | 45,077 | ||||||
Deere & Co. | 738 | 166,721 | ||||||
ITT, Inc. | 1,409 | 85,259 | ||||||
Lockheed Martin Corp. | 200 | 70,026 | ||||||
Middleby Corp.(e) | 803 | 79,931 | ||||||
Parker-Hannifin Corp. | 390 | 81,260 | ||||||
609,783 | ||||||||
Industrial Services (1.33%) | ||||||||
Norfolk Southern Corp. | 494 | 103,305 | ||||||
Southwest Airlines Co. | 2,229 | 88,112 | ||||||
191,417 | ||||||||
TOTAL Industrials | 888,586 | |||||||
Materials (1.66%) | ||||||||
Materials (1.66%) | ||||||||
Celanese Corp. | 667 | 75,711 | ||||||
DuPont de Nemours, Inc. | 1,377 | 78,324 | ||||||
Freeport-McMoRan, Inc. | 4,918 | 85,278 | ||||||
239,313 | ||||||||
TOTAL Materials | 239,313 |
Shares | Value (Note 2) | |||||||
Real Estate (0.78%) | ||||||||
Real Estate (0.78%) | ||||||||
American Tower Corp. | 194 | $ | 44,552 | |||||
Equity LifeStyle Properties, Inc. | 1,135 | 67,181 | ||||||
111,733 | ||||||||
TOTAL Real Estate | 111,733 | |||||||
Technology (12.38%) | ||||||||
Software & Tech Services (7.49%) | ||||||||
Adobe, Inc.(e) | 304 | 135,918 | ||||||
Black Knight, Inc.(e) | 820 | 72,119 | ||||||
Fidelity National Information Services, Inc. | 756 | 94,190 | ||||||
Mastercard, Inc., Class A | 454 | 131,043 | ||||||
Microsoft Corp. | 1,443 | 292,164 | ||||||
PayPal Holdings, Inc.(e) | 852 | 158,583 | ||||||
salesforce.com, Inc.(e) | 628 | 145,866 | ||||||
Synopsys, Inc.(e) | 238 | 50,899 | ||||||
1,080,782 | ||||||||
Tech Hardware & Semiconductors (4.89%) | ||||||||
Advanced Micro Devices, Inc.(e) | 639 | 48,110 | ||||||
Apple, Inc. | 1,146 | 124,754 | ||||||
Lam Research Corp. | 396 | 135,464 | ||||||
Micron Technology, Inc.(e) | 1,143 | 57,539 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd., ADR | 2,083 | 174,701 | ||||||
Texas Instruments, Inc. | 1,126 | 162,808 | ||||||
703,376 | ||||||||
TOTAL Technology | 1,784,158 | |||||||
Utilities (1.04%) | ||||||||
Utilities (1.04%) | ||||||||
Edison International | 2,655 | 148,786 | ||||||
TOTAL Utilities | 148,786 | |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $7,483,834) | 7,353,418 | |||||||
GOVERNMENT BONDS (16.40%) | ||||||||
U.S. Treasury Bonds (16.40%) | ||||||||
United States Treasury Bonds | ||||||||
1.125%, 08/15/2040 | 166,000 | 157,285 | ||||||
1.375%, 08/15/2050 | 224,000 | 208,845 |
91 | October 31, 2020
ALPS | Smith Balanced Opportunity Fund
Statement of Investments | October 31, 2020 |
Shares | Value (Note 2) | |||||||
United States Treasury Notes | ||||||||
0.125%, 08/31/2022 | $ | 525,000 | $ | 524,796 | ||||
0.125%, 09/30/2022 | 298,000 | 297,860 | ||||||
0.125%, 09/15/2023 | 399,000 | 398,205 | ||||||
0.250%, 08/31/2025 | 360,000 | 357,975 | ||||||
0.250%, 09/30/2025 | 72,000 | 71,564 | ||||||
0.625%, 08/15/2030 | 349,000 | 340,902 | ||||||
Total U.S. Treasury Bonds | 2,357,432 | |||||||
TOTAL GOVERNMENT BONDS | ||||||||
(Cost $2,369,983) | 2,357,432 |
7-Day Yield | Shares | Value (Note 2) | ||||||||||
SHORT TERM INVESTMENTS (2.61%) | ||||||||||||
Money Market Fund (2.61%) | ||||||||||||
Morgan Stanley Institutional Liquidity Funds - Government Portfolio | 0.020 | % | 58,330 | 58,330 | ||||||||
State Street Institutional Treasury Plus Money Market Fund | 0.020 | % | 316,507 | 316,507 | ||||||||
374,837 | ||||||||||||
TOTAL SHORT TERM INVESTMENTS | ||||||||||||
(Cost $374,837) | 374,837 | |||||||||||
TOTAL INVESTMENTS (96.52%) | ||||||||||||
(Cost $14,007,923) | $ | 13,871,904 | ||||||||||
Other Assets In Excess Of Liabilities (3.48%) | 500,483 | |||||||||||
NET ASSETS (100.00%) | $ | 14,372,387 |
Investment Abbreviations:
LIBOR - London Interbank Offered Rate
SOFR - Secured Overnight Financing Rate
Reference Rates:
1M US L - 1 Month LIBOR as of October 31, 2020 was 0.14%
3M US L - 3 Month LIBOR as of October 31, 2020 was 0.22%
1Y US TI - 1 Year Treasury Yield as of October 31, 2020 was 0.13%
10Y US TI - 10 Year Treasury Yield as of October 31, 2020 was 0.88%
1D US SOFR - 1 Day SOFR as of October 31, 2020 was 0.09%
(a) | Floating or variable rate security. The reference rate is described above. The rate in effect as of October 31, 2020 is based on the reference rate plus the displayed spread as of the security's last reset date. |
(b) | Security exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of October 31, 2020, the aggregate market value of those securities was $707,625, representing 4.92% of net assets. |
(c) | Perpetual maturity. This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. |
(d) | Step bond. Coupon changes periodically based upon a predetermined schedule. Interest rate disclosed is that which is in effect as of October 31, 2020. |
(e) | Non-Income Producing Security. |
See Notes to Financial Statements.
92 | October 31, 2020
ALPS | Smith Funds |
Statements of Assets and Liabilities | October 31, 2020 |
ALPS | Smith Short Duration Bond Fund | ALPS | Smith Total Return Bond Fund | ALPS | Smith Credit Opportunities Fund | ALPS | Smith Balanced Opportunity Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at value | $ | 179,051,290 | $ | 1,332,722,578 | $ | 26,996,163 | $ | 13,871,904 | ||||||||
Receivable for investments sold | 1,352,109 | 31,610,388 | 642,448 | 838,823 | ||||||||||||
Receivable for shares sold | 832,592 | 5,624,468 | 383,980 | – | ||||||||||||
Interest receivable | 838,204 | 9,475,420 | 268,740 | 31,945 | ||||||||||||
Dividend receivable | – | – | – | 2,970 | ||||||||||||
Receivable due from advisor | – | – | 6,138 | 19,252 | ||||||||||||
Prepaid expenses and other assets | 26,478 | 60,327 | 294 | 183 | ||||||||||||
Total Assets | 182,100,673 | 1,379,493,181 | 28,297,763 | 14,765,077 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payable for investments purchased | 85,421 | 13,959,822 | 845,419 | 358,324 | ||||||||||||
Payable for shares redeemed | 48,300 | 948,753 | 127,533 | – | ||||||||||||
Overdraft payable | – | – | 50,900 | – | ||||||||||||
Investment advisory fees payable | 21,163 | 475,135 | – | – | ||||||||||||
Administration and transfer agency fees payable | 80,174 | 483,012 | 6,745 | 11,705 | ||||||||||||
Distribution and services fees payable | 5,392 | 13,874 | 883 | 859 | ||||||||||||
Trustees' fees and expenses payable | 2,232 | 18,748 | – | – | ||||||||||||
Professional fees payable | 25,454 | 32,850 | 19,113 | 19,112 | ||||||||||||
Custody fees payable | 3,293 | 19,693 | 1,070 | 1,070 | ||||||||||||
Accrued expenses and other liabilities | 16,169 | 123,371 | 1,624 | 1,620 | ||||||||||||
Total Liabilities | 287,598 | 16,075,258 | 1,053,287 | 392,690 | ||||||||||||
NET ASSETS | $ | 181,813,075 | $ | 1,363,417,923 | $ | 27,244,476 | $ | 14,372,387 | ||||||||
NET ASSETS CONSIST OF | ||||||||||||||||
Paid-in capital | $ | 178,170,872 | $ | 1,312,269,719 | $ | 27,313,325 | $ | 14,530,200 | ||||||||
Total distributable earnings | 3,642,203 | 51,148,204 | (68,849 | ) | (157,813 | ) | ||||||||||
NET ASSETS | $ | 181,813,075 | $ | 1,363,417,923 | $ | 27,244,476 | $ | 14,372,387 | ||||||||
INVESTMENTS, AT COST | $ | 176,980,998 | $ | 1,301,362,434 | $ | 27,111,518 | $ | 14,007,923 |
See Notes to Financial Statements.
93 | October 31, 2020
ALPS | Smith Funds |
Statements of Assets and Liabilities | October 31, 2020 |
ALPS | Smith Short Duration Bond Fund | ALPS | Smith Total Return Bond Fund | ALPS | Smith Credit Opportunities Fund | ALPS | Smith Balanced Opportunity Fund | |||||||||||||
PRICING OF SHARES | ||||||||||||||||
Investor Class: | ||||||||||||||||
Net Asset Value, offering and redemption price per share | $ | 10.62 | $ | 11.46 | $ | 9.96 | $ | 9.88 | ||||||||
Net Assets | $ | 9,099,779 | $ | 10,108,793 | $ | 699,076 | $ | 601,376 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 856,876 | 882,047 | 70,186 | 60,855 | ||||||||||||
Class A: | ||||||||||||||||
Net Asset Value, offering and redemption price per share | $ | 10.61 | $ | 11.46 | $ | 9.96 | $ | 9.88 | ||||||||
Net Assets | $ | 3,702,477 | $ | 15,015,609 | $ | 995,942 | $ | 987,986 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 348,800 | 1,309,708 | 100,000 | 100,000 | ||||||||||||
Maximum offering price per share | $ | 10.85 | (a) | $ | 11.72 | (a) | $ | 10.19 | (a) | $ | 10.21 | (b) | ||||
Class C: | ||||||||||||||||
Net Asset Value, offering and redemption price per share(c) | $ | 10.61 | $ | 11.44 | $ | 9.96 | $ | 9.88 | ||||||||
Net Assets | $ | 2,193,497 | $ | 6,507,717 | $ | 497,971 | $ | 493,765 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 206,772 | 568,779 | 50,000 | 50,000 | ||||||||||||
Class I: | ||||||||||||||||
Net Asset Value, offering and redemption price per share | $ | 10.62 | $ | 11.46 | $ | 9.97 | $ | 9.88 | ||||||||
Net Assets | $ | 166,817,322 | $ | 1,331,785,804 | $ | 25,051,487 | $ | 12,289,260 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 15,700,510 | 116,227,155 | 2,513,520 | 1,243,620 |
(a) | (NAV/0.9775), based on maximum sales charge of 2.25% of the offering price. |
(b) | (NAV/0.9675), based on maximum sales charge of 3.25% of the offering price. |
(c) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. For a description of a possible sales charge, please see the Fund's Prospectus. |
See Notes to Financial Statements.
94 | October 31, 2020
ALPS | Smith Funds |
Statements of Operations | For the Year Ended October 31, 2020 |
ALPS | Smith Short Duration Bond Fund | ALPS | Smith Total Return Bond Fund | ALPS | Smith Credit Opportunities Fund(a) | ALPS | Smith Balanced Opportunity Fund(a) | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends | $ | 4,833 | $ | 494,379 | $ | 2,056 | $ | 13,253 | ||||||||
Foreign taxes withheld on dividends | (2,765 | ) | (10,753 | ) | (243 | ) | (147 | ) | ||||||||
Interest | 1,837,102 | 23,472,539 | 64,679 | 10,641 | ||||||||||||
Total Investment Income | 1,839,170 | 23,956,165 | 66,492 | 23,747 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 334,406 | 4,979,505 | 18,330 | 11,658 | ||||||||||||
Administrative fees | 146,028 | 1,015,009 | 6,724 | 11,684 | ||||||||||||
Transfer agency fees | 25,712 | 165,567 | 21 | 21 | ||||||||||||
Distribution and service fees | ||||||||||||||||
Investor Class | 3,974 | 18,691 | 249 | 206 | ||||||||||||
Class A | 4,279 | 29,991 | 377 | 378 | ||||||||||||
Class C | 10,464 | 38,591 | 627 | 630 | ||||||||||||
Professional fees | 29,983 | 57,622 | 19,113 | 19,112 | ||||||||||||
Reports to shareholders and printing fees | 7,178 | 70,867 | 234 | 232 | ||||||||||||
State registration fees | 75,118 | 190,832 | 1,187 | 1,186 | ||||||||||||
Insurance fees | 663 | 5,327 | 2 | 2 | ||||||||||||
Custody fees | 9,614 | 57,503 | 1,070 | 1,070 | ||||||||||||
Trustees' fees and expenses | 4,456 | 46,314 | – | – | ||||||||||||
Miscellaneous expenses | 9,060 | 22,569 | 202 | 203 | ||||||||||||
Total Expenses | 660,935 | 6,698,388 | 48,136 | 46,382 | ||||||||||||
Less fees waived/reimbursed by investment advisor (Note 8) | ||||||||||||||||
Investor Class | (2,510 | ) | (3,483 | ) | (972 | ) | (1,277 | ) | ||||||||
Class A | (2,600 | ) | (4,094 | ) | (1,487 | ) | (2,362 | ) | ||||||||
Class C | (1,915 | ) | (2,094 | ) | (743 | ) | (1,181 | ) | ||||||||
Class I | (184,309 | ) | (461,477 | ) | (21,266 | ) | (26,090 | ) | ||||||||
Net Expenses | 469,601 | 6,227,240 | 23,668 | 15,472 | ||||||||||||
Net Investment Income | 1,369,569 | 17,728,925 | 42,824 | 8,275 | ||||||||||||
Net realized gain/(loss) on investments | 1,602,831 | 20,708,790 | 43,945 | (23,561 | ) | |||||||||||
Net Realized Gain/(Loss) | 1,602,831 | 20,708,790 | 43,945 | (23,561 | ) | |||||||||||
Net change in unrealized appreciation/(depreciation) on investments | 1,684,442 | 24,830,792 | (115,355 | ) | (136,019 | ) | ||||||||||
Net Change in Unrealized Appreciation/(Depreciation) | 1,684,442 | 24,830,792 | (115,355 | ) | (136,019 | ) | ||||||||||
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS | 3,287,273 | 45,539,582 | (71,410 | ) | (159,580 | ) | ||||||||||
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 4,656,842 | $ | 63,268,507 | $ | (28,586 | ) | $ | (151,305 | ) |
(a) | For the period September 16, 2020 (Inception) to October 31, 2020. |
See Notes to Financial Statements.
95 | October 31, 2020
ALPS | Smith Short Duration Bond Fund
Statement of Changes in Net Assets
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 1,369,569 | $ | 814,781 | ||||
Net realized gain | 1,602,831 | 426,249 | ||||||
Net change in unrealized appreciation | 1,684,442 | 421,108 | ||||||
Net Increase in Net Assets Resulting from Operations | 4,656,842 | 1,662,138 | ||||||
DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class | (21,527 | ) | (10,717 | ) | ||||
Class A | (21,429 | ) | (4,962 | ) | ||||
Class C | (9,016 | ) | (6,391 | ) | ||||
Class I | (1,765,667 | ) | (813,500 | ) | ||||
Net Decrease in Net Assets from Distributions | (1,817,639 | ) | (835,570 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class | 8,786,055 | 258,218 | ||||||
Class A | 3,316,195 | 369,919 | ||||||
Class C | 1,845,022 | 131,126 | ||||||
Class I | 159,410,823 | 41,853,588 | ||||||
Dividends reinvested | ||||||||
Investor Class | 16,577 | 10,000 | ||||||
Class A | 18,236 | 4,473 | ||||||
Class C | 8,286 | 5,616 | ||||||
Class I | 1,187,091 | 440,376 | ||||||
Shares redeemed, net of redemption fees | ||||||||
Investor Class | (230,669 | ) | (252,456 | ) | ||||
Class A | (148,329 | ) | (18,487 | ) | ||||
Class C | (185,508 | ) | (20,155 | ) | ||||
Class I | (41,453,423 | ) | (11,777,876 | ) | ||||
Net Increase in Net Assets Derived from Beneficial Interest Transactions | 132,570,356 | 31,004,342 | ||||||
Net increase in net assets | 135,409,559 | 31,830,910 | ||||||
NET ASSETS | ||||||||
Beginning of year | 46,403,516 | 14,572,606 | ||||||
End of year | $ | 181,813,075 | $ | 46,403,516 |
See Notes to Financial Statements.
96 | October 31, 2020
ALPS | Smith Total Return Bond Fund
Statement of Changes in Net Assets
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 17,728,925 | $ | 3,139,972 | ||||
Net realized gain | 20,708,790 | 4,027,836 | ||||||
Net change in unrealized appreciation | 24,830,792 | 6,559,219 | ||||||
Net Increase in Net Assets Resulting from Operations | 63,268,507 | 13,727,027 | ||||||
DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class | (136,099 | ) | (58,353 | ) | ||||
Class A | (252,408 | ) | (42,792 | ) | ||||
Class C | (59,370 | ) | (5,589 | ) | ||||
Class I | (22,139,600 | ) | (3,126,201 | ) | ||||
Net Decrease in Net Assets from Distributions | (22,587,477 | ) | (3,232,935 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class | 9,570,405 | 7,455,767 | ||||||
Class A | 7,720,559 | 8,877,480 | ||||||
Class C | 5,311,853 | 1,700,810 | ||||||
Class I | 1,096,771,120 | 358,733,093 | ||||||
Dividends reinvested | ||||||||
Investor Class | 120,845 | 56,025 | ||||||
Class A | 240,768 | 40,890 | ||||||
Class C | 55,429 | 5,571 | ||||||
Class I | 15,005,297 | 2,384,296 | ||||||
Shares redeemed, net of redemption fees | ||||||||
Investor Class | (3,975,002 | ) | (3,982,563 | ) | ||||
Class A | (1,264,314 | ) | (1,263,173 | ) | ||||
Class C | (733,489 | ) | (111,542 | ) | ||||
Class I | (185,793,976 | ) | (15,780,343 | ) | ||||
Net Increase in Net Assets Derived from Beneficial Interest Transactions | 943,029,495 | 358,116,311 | ||||||
Net increase in net assets | 983,710,525 | 368,610,403 | ||||||
NET ASSETS | ||||||||
Beginning of year | 379,707,398 | 11,096,995 | ||||||
End of year | $ | 1,363,417,923 | $ | 379,707,398 |
See Notes to Financial Statements.
97 | October 31, 2020
ALPS | Smith Credit Opportunities Fund
Statement of Changes in Net Assets
For the Period September 16, 2020 (Commencement of Operations) to October 31, 2020 | ||||
OPERATIONS | ||||
Net investment income | $ | 42,824 | ||
Net realized gain | 43,945 | |||
Net change in unrealized depreciation | (115,355 | ) | ||
Net Decrease in Net Assets Resulting from Operations | (28,586 | ) | ||
DISTRIBUTIONS | ||||
From distributable earnings | ||||
Investor Class | (1,183 | ) | ||
Class A | (1,780 | ) | ||
Class C | (450 | ) | ||
Class I | (37,948 | ) | ||
Net Decrease in Net Assets from Distributions | (41,361 | ) | ||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||
Shares sold | ||||
Investor Class | 701,936 | |||
Class A | 1,000,000 | |||
Class C | 500,000 | |||
Class I | 25,436,680 | |||
Dividends reinvested | ||||
Class I | 1,273 | |||
Shares redeemed | ||||
Investor Class | (175 | ) | ||
Class I | (325,291 | ) | ||
Net Increase in Net Assets Derived from Beneficial Interest Transactions | 27,314,423 | |||
Net increase in net assets | 27,244,476 | |||
NET ASSETS | ||||
Beginning of period | – | |||
End of period | $ | 27,244,476 |
See Notes to Financial Statements.
98 | October 31, 2020
ALPS | Smith Balanced Opportunity Fund
Statement of Changes in Net Assets
For the Period September 16, 2020 (Commencement of Operations) to October 31, 2020 | ||||
OPERATIONS | ||||
Net investment income | $ | 8,275 | ||
Net realized loss | (23,561 | ) | ||
Net change in unrealized depreciation | (136,019 | ) | ||
Net Decrease in Net Assets Resulting from Operations | (151,305 | ) | ||
DISTRIBUTIONS | ||||
From distributable earnings | ||||
Investor Class | (116 | ) | ||
Class A | (415 | ) | ||
Class I | (6,578 | ) | ||
Net Decrease in Net Assets from Distributions | (7,109 | ) | ||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||
Shares sold | ||||
Investor Class | 610,109 | |||
Class A | 1,000,000 | |||
Class C | 500,000 | |||
Class I | 12,420,000 | |||
Dividends reinvested | ||||
Class I | 692 | |||
Net Increase in Net Assets Derived from Beneficial Interest Transactions | 14,530,801 | |||
Net increase in net assets | 14,372,387 | |||
NET ASSETS | ||||
Beginning of period | – | |||
End of period | $ | 14,372,387 |
See Notes to Financial Statements.
99 | October 31, 2020
ALPS | Smith Short Duration Bond Fund – Investor Class |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | ||||||||||
Net asset value, beginning of period | $ | 10.25 | $ | 9.98 | $ | 10.00 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(a) | 0.11 | 0.23 | 0.07 | |||||||||
Net realized and unrealized gain/(loss) | 0.48 | 0.27 | (0.04 | ) | ||||||||
Total from investment operations | 0.59 | 0.50 | 0.03 | |||||||||
DISTRIBUTIONS: | ||||||||||||
From net investment income | (0.14 | ) | (0.22 | ) | (0.05 | ) | ||||||
From net realized gains | (0.08 | ) | (0.01 | ) | – | |||||||
Total distributions | (0.22 | ) | (0.23 | ) | (0.05 | ) | ||||||
Net increase/(decrease) in net asset value | 0.37 | 0.27 | (0.02 | ) | ||||||||
Net asset value, end of year | $ | 10.62 | $ | 10.25 | $ | 9.98 | ||||||
TOTAL RETURN(b) | 5.85 | % | 5.04 | % | 0.25 | % | ||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||
Net assets, end of year (000s) | $ | 9,100 | $ | 519 | $ | 491 | ||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.95 | % | 1.10 | % | 2.79 | %(c) | ||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.78 | % | 0.76 | % | 0.89 | %(c) | ||||||
Ratio of net investment income to average net assets | 1.02 | % | 2.22 | % | 1.93 | %(c) | ||||||
Portfolio turnover rate(d) | 457 | % | 639 | % | 266 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
100 | October 31, 2020
ALPS | Smith Short Duration Bond Fund – Class A |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | ||||||||||
Net asset value, beginning of period | $ | 10.24 | $ | 9.98 | $ | 10.00 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(a) | 0.12 | 0.22 | 0.06 | |||||||||
Net realized and unrealized gain/(loss) | 0.47 | 0.27 | (0.03 | ) | ||||||||
Total from investment operations | 0.59 | 0.49 | 0.03 | |||||||||
DISTRIBUTIONS: | ||||||||||||
From net investment income | (0.14 | ) | (0.22 | ) | (0.05 | ) | ||||||
From net realized gains | (0.08 | ) | (0.01 | ) | – | |||||||
Total distributions | (0.22 | ) | (0.23 | ) | (0.05 | ) | ||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | – | 0.00 | (b) | – | ||||||||
Net increase/(decrease) in net asset value | 0.37 | 0.26 | (0.02 | ) | ||||||||
Net asset value, end of year | $ | 10.61 | $ | 10.24 | $ | 9.98 | ||||||
TOTAL RETURN(c) | 5.84 | % | 4.96 | % | 0.27 | % | ||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||
Net assets, end of year (000s) | $ | 3,702 | $ | 471 | $ | 110 | ||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.94 | % | 1.09 | % | 4.28 | %(d) | ||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.77 | % | 0.74 | % | 0.89 | %(d) | ||||||
Ratio of net investment income to average net assets | 1.10 | % | 2.17 | % | 1.86 | %(d) | ||||||
Portfolio turnover rate(e) | 457 | % | 639 | % | 266 | % |
(a) | Calculated using the average shares method. |
(b) | Less than $0.005 or ($0.005) per share. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(d) | Annualized. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
101 | October 31, 2020
ALPS | Smith Short Duration Bond Fund – Class C |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | ||||||||||
Net asset value, beginning of period | $ | 10.24 | $ | 9.98 | $ | 10.00 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(a) | 0.05 | 0.15 | 0.05 | |||||||||
Net realized and unrealized gain/(loss) | 0.47 | 0.27 | (0.04 | ) | ||||||||
Total from investment operations | 0.52 | 0.42 | 0.01 | |||||||||
DISTRIBUTIONS: | ||||||||||||
From net investment income | (0.07 | ) | (0.15 | ) | (0.03 | ) | ||||||
From net realized gains | (0.08 | ) | (0.01 | ) | – | |||||||
Total distributions | (0.15 | ) | (0.16 | ) | (0.03 | ) | ||||||
Net increase/(decrease) in net asset value | 0.37 | 0.26 | (0.02 | ) | ||||||||
Net asset value, end of year | $ | 10.61 | $ | 10.24 | $ | 9.98 | ||||||
TOTAL RETURN(b) | 5.10 | % | 4.19 | % | 0.09 | % | ||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||
Net assets, end of year (000s) | $ | 2,193 | $ | 497 | $ | 370 | ||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.67 | % | 1.83 | % | 3.54 | %(c) | ||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.49 | % | 1.49 | % | 1.48 | %(c) | ||||||
Ratio of net investment income to average net assets | 0.46 | % | 1.48 | % | 1.35 | %(c) | ||||||
Portfolio turnover rate(d) | 457 | % | 639 | % | 266 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
102 | October 31, 2020
ALPS | Smith Short Duration Bond Fund – Class I |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | ||||||||||
Net asset value, beginning of period | $ | 10.25 | $ | 9.99 | $ | 10.00 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(a) | 0.16 | 0.25 | 0.08 | |||||||||
Net realized and unrealized gain/(loss) | 0.46 | 0.26 | (0.03 | ) | ||||||||
Total from investment operations | 0.62 | 0.51 | 0.05 | |||||||||
DISTRIBUTIONS: | ||||||||||||
From net investment income | (0.17 | ) | (0.25 | ) | (0.06 | ) | ||||||
From net realized gains | (0.08 | ) | (0.01 | ) | – | |||||||
Total distributions | (0.25 | ) | (0.26 | ) | (0.06 | ) | ||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (b) | 0.01 | 0.00 | (b) | |||||||
Net increase/(decrease) in net asset value | 0.37 | 0.26 | (0.01 | ) | ||||||||
Net asset value, end of year | $ | 10.62 | $ | 10.25 | $ | 9.99 | ||||||
TOTAL RETURN(c) | 6.12 | % | 5.21 | % | 0.50 | % | ||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||
Net assets, end of year (000s) | $ | 166,817 | $ | 44,916 | $ | 13,601 | ||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.70 | % | 0.82 | % | 1.70 | %(d) | ||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.49 | % | 0.49 | % | 0.49 | %(d) | ||||||
Ratio of net investment income to average net assets | 1.52 | % | 2.46 | % | 2.36 | %(d) | ||||||
Portfolio turnover rate(e) | 457 | % | 639 | % | 266 | % |
(a) | Calculated using the average shares method. |
(b) | Less than $0.005 or ($0.005) per share. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(d) | Annualized. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
103 | October 31, 2020
ALPS | Smith Total Return Bond Fund – Investor Class |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | ||||||||||
Net asset value, beginning of period | $ | 10.99 | $ | 10.05 | $ | 10.00 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(a) | 0.19 | 0.22 | 0.07 | |||||||||
Net realized and unrealized gain | 0.57 | 0.95 | 0.03 | |||||||||
Total from investment operations | 0.76 | 1.17 | 0.10 | |||||||||
DISTRIBUTIONS: | ||||||||||||
From net investment income | (0.19 | ) | (0.21 | ) | (0.05 | ) | ||||||
From net realized gains | (0.10 | ) | (0.02 | ) | – | |||||||
Total distributions | (0.29 | ) | (0.23 | ) | (0.05 | ) | ||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (b) | 0.00 | (b) | – | |||||||
Net increase in net asset value | 0.47 | 0.94 | 0.05 | |||||||||
Net asset value, end of year | $ | 11.46 | $ | 10.99 | $ | 10.05 | ||||||
TOTAL RETURN(c) | 6.95 | % | 11.77 | % | 1.00 | % | ||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||
Net assets, end of year (000s) | $ | 10,109 | $ | 4,121 | $ | 345 | ||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.01 | % | 1.07 | % | 2.97 | %(d) | ||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.96 | % | 0.96 | % | 1.07 | %(d) | ||||||
Ratio of net investment income to average net assets | 1.66 | % | 2.05 | % | 2.20 | %(d) | ||||||
Portfolio turnover rate(e) | 360 | % | 489 | % | 345 | % |
(a) | Calculated using the average shares method. |
(b) | Less than $0.005 or ($0.005) per share. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(d) | Annualized. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
104 | October 31, 2020
ALPS | Smith Total Return Bond Fund – Class A |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | ||||||||||
Net asset value, beginning of period | $ | 10.99 | $ | 10.05 | $ | 10.00 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(a) | 0.19 | 0.21 | 0.07 | |||||||||
Net realized and unrealized gain | 0.57 | 0.97 | 0.03 | |||||||||
Total from investment operations | 0.76 | 1.18 | 0.10 | |||||||||
DISTRIBUTIONS: | ||||||||||||
From net investment income | (0.19 | ) | (0.22 | ) | (0.05 | ) | ||||||
From net realized gains | (0.10 | ) | (0.02 | ) | – | |||||||
Total distributions | (0.29 | ) | (0.24 | ) | (0.05 | ) | ||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (b) | 0.00 | (b) | – | |||||||
Net increase in net asset value | 0.47 | 0.94 | 0.05 | |||||||||
Net asset value, end of year | $ | 11.46 | $ | 10.99 | $ | 10.05 | ||||||
TOTAL RETURN(c) | 6.96 | % | 11.79 | % | 1.04 | % | ||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||
Net assets, end of year (000s) | $ | 15,016 | $ | 7,929 | $ | 136 | ||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.99 | % | 1.05 | % | 3.96 | %(d) | ||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.95 | % | 0.95 | % | 1.07 | %(d) | ||||||
Ratio of net investment income to average net assets | 1.66 | % | 1.91 | % | 2.10 | %(d) | ||||||
Portfolio turnover rate(e) | 360 | % | 489 | % | 345 | % |
(a) | Calculated using the average shares method. |
(b) | Less than $0.005 or ($0.005) per share. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(d) | Annualized. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
105 | October 31, 2020
ALPS | Smith Total Return Bond Fund – Class C |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | ||||||||||
Net asset value, beginning of period | $ | 10.97 | $ | 10.04 | $ | 10.00 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(a) | 0.11 | 0.13 | 0.05 | |||||||||
Net realized and unrealized gain | 0.57 | 0.97 | 0.03 | |||||||||
Total from investment operations | 0.68 | 1.10 | 0.08 | |||||||||
DISTRIBUTIONS: | ||||||||||||
From net investment income | (0.11 | ) | (0.15 | ) | (0.04 | ) | ||||||
From net realized gains | (0.10 | ) | (0.02 | ) | – | |||||||
Total distributions | (0.21 | ) | (0.17 | ) | (0.04 | ) | ||||||
Net increase in net asset value | 0.47 | 0.93 | 0.04 | |||||||||
Net asset value, end of year | $ | 11.44 | $ | 10.97 | $ | 10.04 | ||||||
TOTAL RETURN(b) | 6.23 | % | 10.98 | % | 0.79 | % | ||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||
Net assets, end of year (000s) | $ | 6,508 | $ | 1,727 | $ | 121 | ||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.72 | % | 1.79 | % | 4.69 | %(c) | ||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.67 | % | 1.67 | % | 1.67 | %(c) | ||||||
Ratio of net investment income to average net assets | 0.94 | % | 1.20 | % | 1.49 | %(c) | ||||||
Portfolio turnover rate(d) | 360 | % | 489 | % | 345 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
106 | October 31, 2020
ALPS | Smith Total Return Bond Fund – Class I |
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Period July 2, 2018 (Commencement of Operations) to October 31, 2018 | ||||||||||
Net asset value, beginning of period | $ | 10.99 | $ | 10.04 | $ | 10.00 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(a) | 0.22 | 0.24 | 0.09 | |||||||||
Net realized and unrealized gain | 0.57 | 0.97 | 0.02 | |||||||||
Total from investment operations | 0.79 | 1.21 | 0.11 | |||||||||
DISTRIBUTIONS: | ||||||||||||
From net investment income | (0.22 | ) | (0.24 | ) | (0.07 | ) | ||||||
From net realized gains | (0.10 | ) | (0.02 | ) | – | |||||||
Total distributions | (0.32 | ) | (0.26 | ) | (0.07 | ) | ||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (b) | 0.00 | (b) | – | |||||||
Net increase in net asset value | 0.47 | 0.95 | 0.04 | |||||||||
Net asset value, end of year | $ | 11.46 | $ | 10.99 | $ | 10.04 | ||||||
TOTAL RETURN(c) | 7.26 | % | 12.19 | % | 1.09 | % | ||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||
Net assets, end of year (000s) | $ | 1,331,786 | $ | 365,930 | $ | 10,495 | ||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.72 | % | 0.76 | % | 2.18 | %(d) | ||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.67 | % | 0.67 | % | 0.67 | %(d) | ||||||
Ratio of net investment income to average net assets | 1.94 | % | 2.22 | % | 2.64 | %(d) | ||||||
Portfolio turnover rate(e) | 360 | % | 489 | % | 345 | % |
(a) | Calculated using the average shares method. |
(b) | Less than $0.005 or ($0.005) per share. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(d) | Annualized. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
107 | October 31, 2020
ALPS | Smith Credit Opportunities Fund – Investor Class
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Period September 16, 2020 (Commencement of Operations) to October 31, 2020 | ||||
Net asset value, beginning of period | $ | 10.00 | ||
INCOME FROM INVESTMENT OPERATIONS: | ||||
Net investment income(a) | 0.02 | |||
Net realized and unrealized loss | (0.04 | ) | ||
Total from investment operations | (0.02 | ) | ||
DISTRIBUTIONS: | ||||
From net investment income | (0.02 | ) | ||
Total distributions | (0.02 | ) | ||
Net (decrease) in net asset value | (0.04 | ) | ||
Net asset value, end of year | $ | 9.96 | ||
TOTAL RETURN(b) | (0.23 | )% | ||
RATIOS/SUPPLEMENTAL DATA: | ||||
Net assets, end of year (000s) | $ | 699 | ||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 2.36 | %(c) | ||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.20 | %(c) | ||
Ratio of net investment income to average net assets | 1.37 | %(c) | ||
Portfolio turnover rate(d) | 66 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
108 | October 31, 2020
ALPS | Smith Credit Opportunities Fund – Class A
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Period September 16, 2020 (Commencement of Operations) to October 31, 2020 | ||||
Net asset value, beginning of period | $ | 10.00 | ||
INCOME FROM INVESTMENT OPERATIONS: | ||||
Net investment income(a) | 0.02 | |||
Net realized and unrealized loss | (0.04 | ) | ||
Total from investment operations | (0.02 | ) | ||
DISTRIBUTIONS: | ||||
From net investment income | (0.02 | ) | ||
Total distributions | (0.02 | ) | ||
Net (decrease) in net asset value | (0.04 | ) | ||
Net asset value, end of year | $ | 9.96 | ||
TOTAL RETURN(b) | (0.22 | )% | ||
RATIOS/SUPPLEMENTAL DATA: | ||||
Net assets, end of year (000s) | $ | 996 | ||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 2.38 | %(c) | ||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.20 | %(c) | ||
Ratio of net investment income to average net assets | 1.33 | %(c) | ||
Portfolio turnover rate(d) | 66 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
109 | October 31, 2020
ALPS | Smith Credit Opportunities Fund – Class C
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Period September 16, 2020 (Commencement of Operations) to October 31, 2020 | ||||
Net asset value, beginning of period | $ | 10.00 | ||
INCOME FROM INVESTMENT OPERATIONS: | ||||
Net investment income(a) | 0.01 | |||
Net realized and unrealized loss | (0.04 | ) | ||
Total from investment operations | (0.03 | ) | ||
DISTRIBUTIONS: | ||||
From net investment income | (0.01 | ) | ||
Total distributions | (0.01 | ) | ||
Net (decrease) in net asset value | (0.04 | ) | ||
Net asset value, end of year | $ | 9.96 | ||
TOTAL RETURN(b) | (0.31 | )% | ||
RATIOS/SUPPLEMENTAL DATA: | ||||
Net assets, end of year (000s) | $ | 498 | ||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 3.09 | %(c) | ||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.90 | %(c) | ||
Ratio of net investment income to average net assets | 0.63 | %(c) | ||
Portfolio turnover rate(d) | 66 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
110 | October 31, 2020
ALPS | Smith Credit Opportunities Fund – Class I
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Period September 16, 2020 (Commencement of Operations) to October 31, 2020 | ||||
Net asset value, beginning of period | $ | 10.00 | ||
INCOME FROM INVESTMENT OPERATIONS: | ||||
Net investment income(a) | 0.02 | |||
Net realized and unrealized loss | (0.03 | ) | ||
Total from investment operations | (0.01 | ) | ||
DISTRIBUTIONS: | ||||
From net investment income | (0.02 | ) | ||
Total distributions | (0.02 | ) | ||
Net (decrease) in net asset value | (0.03 | ) | ||
Net asset value, end of year | $ | 9.97 | ||
TOTAL RETURN(b) | (0.15 | )% | ||
RATIOS/SUPPLEMENTAL DATA: | ||||
Net assets, end of year (000s) | $ | 25,051 | ||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.86 | %(c) | ||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.90 | %(c) | ||
Ratio of net investment income to average net assets | 1.79 | %(c) | ||
Portfolio turnover rate(d) | 66 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
111 | October 31, 2020
ALPS | Smith Balanced Opportunity Fund – Investor Class
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Period September 16, 2020 (Commencement of Operations) to October 31, 2020 | ||||
Net asset value, beginning of period | $ | 10.00 | ||
INCOME FROM INVESTMENT OPERATIONS: | ||||
Net investment income(a) | 0.00 | (b) | ||
Net realized and unrealized loss | (0.12 | ) | ||
Total from investment operations | (0.12 | ) | ||
DISTRIBUTIONS: | ||||
From net investment income | (0.00 | )(b) | ||
Net (decrease) in net asset value | (0.12 | ) | ||
Net asset value, end of year | $ | 9.88 | ||
TOTAL RETURN(c) | (1.18 | )% | ||
RATIOS/SUPPLEMENTAL DATA: | ||||
Net assets, end of year (000s) | $ | 601 | ||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 3.00 | %(d) | ||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.15 | %(d) | ||
Ratio of net investment income to average net assets | 0.25 | %(d) | ||
Portfolio turnover rate(e) | 26 | % |
(a) | Calculated using the average shares method. |
(b) | Less than $0.005 or ($0.005) per share. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(d) | Annualized. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
112 | October 31, 2020
ALPS | Smith Balanced Opportunity Fund – Class A
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Period September 16, 2020 (Commencement of Operations) to October 31, 2020 | ||||
Net asset value, beginning of period | $ | 10.00 | ||
INCOME FROM INVESTMENT OPERATIONS: | ||||
Net investment income(a) | 0.00 | (b) | ||
Net realized and unrealized loss | (0.12 | ) | ||
Total from investment operations | (0.12 | ) | ||
DISTRIBUTIONS: | ||||
From net investment income | (0.00 | )(b) | ||
Net (decrease) in net asset value | (0.12 | ) | ||
Net asset value, end of year | $ | 9.88 | ||
TOTAL RETURN(c) | (1.16 | )% | ||
RATIOS/SUPPLEMENTAL DATA: | ||||
Net assets, end of year (000s) | $ | 988 | ||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 3.03 | %(d) | ||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.15 | %(d) | ||
Ratio of net investment income to average net assets | 0.26 | %(d) | ||
Portfolio turnover rate(e) | 26 | % |
(a) | Calculated using the average shares method. |
(b) | Less than $0.005 or ($0.005) per share. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(d) | Annualized. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
113 | October 31, 2020
ALPS | Smith Balanced Opportunity Fund – Class C
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Period September 16, 2020 (Commencement of Operations) to October 31, 2020 | ||||
Net asset value, beginning of period | $ | 10.00 | ||
INCOME FROM INVESTMENT OPERATIONS: | ||||
Net investment loss(a) | (0.01 | ) | ||
Net realized and unrealized loss | (0.11 | ) | ||
Total from investment operations | (0.12 | ) | ||
Net (decrease) in net asset value | (0.12 | ) | ||
Net asset value, end of year | $ | 9.88 | ||
TOTAL RETURN(b) | (1.20 | )% | ||
RATIOS/SUPPLEMENTAL DATA: | ||||
Net assets, end of year (000s) | $ | 494 | ||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 3.73 | %(c) | ||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.85 | %(c) | ||
Ratio of net investment loss to average net assets | (0.44 | )%(c) | ||
Portfolio turnover rate(d) | 26 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
114 | October 31, 2020
ALPS | Smith Balanced Opportunity Fund – Class I
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Period September 16, 2020 (Commencement of Operations) to October 31, 2020 | ||||
Net asset value, beginning of period | $ | 10.00 | ||
INCOME FROM INVESTMENT OPERATIONS: | ||||
Net investment income(a) | 0.01 | |||
Net realized and unrealized loss | (0.12 | ) | ||
Total from investment operations | (0.11 | ) | ||
DISTRIBUTIONS: | ||||
From net investment income | (0.01 | ) | ||
Total distributions | (0.01 | ) | ||
Net (decrease) in net asset value | (0.12 | ) | ||
Net asset value, end of year | $ | 9.88 | ||
TOTAL RETURN(b) | (1.15 | )% | ||
RATIOS/SUPPLEMENTAL DATA: | ||||
Net assets, end of year (000s) | $ | 12,289 | ||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 2.69 | %(c) | ||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.85 | %(c) | ||
Ratio of net investment income to average net assets | 0.57 | %(c) | ||
Portfolio turnover rate(d) | 26 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
115 | October 31, 2020
ALPS | Red Rocks Global Opportunity Fund
Management Commentary | October 31, 2020 (Unaudited) |
COVID-19
COVID-19 The COVID-19 pandemic represents an exogenous shock to global markets. The situation is far from resolved and although we see the light at the end of the tunnel with a vaccine, the global economic outlook is uncertain for the foreseeable future.
Our team is safe, working remotely, and fully operational; they have been able to leverage the resources, capabilities, and technology of our parent company.
The team is closely monitoring the portfolio and has increased the frequency of communication with company management teams. As we did in 2008, we are focusing on the financial health and capital structure of portfolio companies and closely monitoring developments in M&A activity, credit markets, and the potential impact of COVID-19 on the business ecosystems of each of our portfolio companies.
There have been a number of attractive companies in our “fishing pond” of investments which have been sold off due to COVID-19 fears, many of which have little economic exposure to the effects of the pandemic. We believe this represents an opportunity to selectively add to positions that have been sold off. Conversely, we are also reducing exposures where warranted.
This pandemic is unprecedented due to the global scale and negative economic impact. Both the duration and severity are unknown. There is some possibility that the outlook and financial performance of our portfolio will need to be recalibrated.
What has not changed is our focus on fundamental valuations and the effectiveness of capital allocation programs, operational improvement initiatives, and shareholder value-creation within our portfolio companies.
Fiscal Year 2020 Markets Review
After a dramatic sell-off in March, the second quarter recorded one of the fastest stock rebounds in market history, the third quarter continued to plow ahead albeit at a slower rate than warp-speed. While much has been made about the market recovery, the broad public has spent less time understanding the rapid improvement in economic data, and so we will touch on a few highlights to help support Mr. Market’s continued rise. It turns out that Americans love to spend money, who knew?!
After two months of lockdown and assisted by government social benefits, personal savings grew from $1.4 to $6.4 trillion, and by August it was back down to $2.4 trillion (i.e. there is still more room to spend). This consumption paved the way for a projected 36.8% rebound in Q3 in consumer spending, following a 33.2% drop in Q2. Housing related spending led the way, aided by low interest rates and the proliferation of work-from-home, surpassing the all-time high total spending previously set in 2006. Spending on autos has been similarly strong with new motor vehicle sales up 50.6% from April and spending on used cars up 94.5%, also nearing all-time highs. And lest you think all this is from government handouts, note
that the recovery of jobs has been outpaced by a recovery in wage growth since April.
This is not to say that the recovery hasn’t been uneven, there are still many industries in disarray, particularly services, transportation, and entertainment. Even new fiscal stimulus will be hard pressed to help spending return to these industries, and their fates will be determined by how quickly the vaccine can be distributed and widely taken. The bottom line is that the recovery has been stronger than many imagined back in March, and while we are not out of the woods quite yet, there is plenty of reason for optimism.
Fiscal Year 2020 Portfolio Review
For the 12 months ending October 31, 2020, the Fund’s Investor shares (LPEFX) returned -3.20%, compared with 3.74% and -3.66% for the Morningstar Developed Markets Index (the fund’s primary benchmark) and the Red Rocks Global Listed Private Equity Index, respectively.
We exited 12 names, added 20, and ended the period with 47 holdings.
Net contributors to performance included:
● | IAC/Interactive Corporation |
● | HBM Healthcare Investments AG |
● | Danaher Corporation |
Net detractors from performance included/;
● | FS KKR Capital Corporation |
● | Melrose Industries PLC |
● | Aurelius Equity Opportunities SE & Co |
As we have mentioned in past commentaries, many of the companies in our investment universe can significantly diverge from our estimate of fair or intrinsic value. The portfolio’s greatest contributors were in companies that drifted furthest from their intrinsic value, and we were happy to stick by them as we understand that these are resilient holdings that gain strength in disruption. US financials were large detractors for the portfolio, and as interest rates stay lower for longer, financials will continue to struggle to draw flows away from red hot tech. As we forecasted, M&A activity picked up dramatically in the late summer and this continues to be a tailwind for our portfolio and should persist.
Outlook
While the market and economic recoveries have been strong over the last two quarters, we continue to position ourselves with both caution and optimism.
As previously mentioned, the capital markets are alive and well and M&A activity should continue to persist for the foreseeable future – providing our holdings a tailwind in terms of both realizations and new investments. Furthermore, we still see a mismatch between price and value in some of our largest positions and expect this gap to close as the recovery continues. Furthermore, we expect
116 | October 31, 2020
ALPS | Red Rocks Global Opportunity Fund
Management Commentary | October 31, 2020 (Unaudited) |
Americans to continue to spend their stored up savings, and any future fiscal stimulus will only add fuel to this fire.
With low rates expected to persist, we expect the dollar to continue to weaken over the mid-term as part of this rebalance, and we are positioned to capture these effects with the international portion of our portfolio.
The prospect of a widely distributed vaccine as soon as April is facilitating a rotation into more beaten down sectors, and we expect this rotation to continue to balance out and we have been well positioned for this outcome. At the very least, we remain skeptical of most overpriced growth assets and their ability to deliver comparable medium-term value. The market seems to be fairly well positioned today with lots of liquidity, the possibility of more fiscal stimulus, pent up consumer savings, and a global expansion.
We remain cautious for the obvious reasons, but most basically: overall asset values offer low long-term returns and very rarely are lower returns realized gradually over time. We are steadily shifting our portfolio away from financial assets and into reasonably priced, high quality operating companies with good track records of outperformance. Our best defense is to continue investing in businesses with resilient cash flows, flexible business models, strong balance sheets, and the ability to take advantage of any market dislocations.
We continue to maintain an unwavering belief in the superiority of the unconstrained and highly disciplined capital allocation business model. We believe that given relative valuations, M&A tailwinds, and a focus on return on capital, our portfolio is positioned well for this environment.
Andrew Drummond | Kirk McCown |
Portfolio Manager | Portfolio Manager |
The views of the authors and information discussed in this commentary are as of the date of publication, are subject to change, and may not reflect the writer's current views. The views expressed are those of the authors only, and represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the fund(s) or any securities or any sectors mentioned in this letter. The subject matter contained in this letter has been derived from several sources believed to be reliable and accurate at the time of compilation. Neither ALPS, Advisors, Inc., Red Rocks Capital, LLC, nor the Fund accepts any liability for losses either direct or consequential caused by the use of this information.
Diversification cannot guarantee gain or prevent losses.
Past performance is no guarantee of future results. Dividends are not guaranteed and are subject to change or elimination. Investments in international and emerging markets securities include exposure to risks such as currency fluctuations, foreign taxes and regulations, and the potential for illiquid markets and political instability.
ALPS Portfolio Solutions Distributor, Inc., ALPS Distributors, Inc. and ALPS Advisors Inc. are affiliated.
117 | October 31, 2020
ALPS | Red Rocks Global Opportunity Fund
Performance Update | October 31, 2020 (Unaudited) |
Performance of $10,000 Initial Investment (as of October 31, 2020)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund. Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns (as of October 31, 2020)
1 Year | 3 Year | 5 Year | 10 Year | Total Expense Ratio | What You Pay* | |
Investor# (NAV) | -3.20% | 3.26% | 7.60% | 8.88% | 2.31% | 2.31% |
Class A (NAV) | -2.92% | 3.32% | 7.63% | 8.90% | 2.30% | 2.30% |
Class A (MOP) | -8.30% | 1.39% | 6.43% | 8.29% | ||
Class C (NAV) | -4.01% | 2.46% | 6.81% | 8.09% | 2.95% | 2.95% |
Class C (CDSC) | -4.84% | 2.46% | 6.81% | 8.09% | ||
Class I | -2.93% | 3.55% | 7.90% | 9.19% | 1.98% | 1.98% |
Class R | -3.37%+ | 3.09% | 7.39% | 8.76% | 2.40% | 2.40% |
Morningstar Developed Markets Index1 | 4.29% | 6.01% | 8.52% | 9.27% | ||
Red Rocks Global Listed Private Equity Index2 | -3.66% | 1.51% | 6.77% | 8.42% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $ 1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million. The Fund imposes a 2.00% redemption fee on shares held for less than 90 days.
118 | October 31, 2020
ALPS | Red Rocks Global Opportunity Fund
Performance Update | October 31, 2020 (Unaudited) |
Performance shown for Class A shares prior to June 12, 2018 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class A shares.
Performance shown for Class C shares prior to June 30, 2010 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class C shares.
Fund Inception date of December 31, 2007 for Investor Class, Class I, and Class R; Fund Inception date June 30, 2010 for Class C; Fund Inception date June 12, 2018 for Class A.
1 | The Morningstar Developed Market Index measures the performance of developed regional markets targeting the top 97% of stocks by market capitalization. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
2 | The Red Rocks Global Listed Private Equity Index includes securities, ADRs and GDRs of 40 to 75 private equity companies, including business development companies, master limited partnerships and other vehicles whose principal business is to invest in, lend capital to or provide services to privately held companies. The Red Rocks Global Listed Private Equity Index is managed by the Fund’s Sub-Advisor. An investor may not invest directly in an index. |
* | What You Pay reflects the Advisor's and Sub-Advisor’s decision to contractually limit expenses through February 28, 2021, and Acquired Fund Fees and Expenses of 0.79%. Please see the current prospectus dated February 28, 2020 for additional information. |
# | Prior to December 1, 2017, Investor Class was known as Class A. |
+ | Excludes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value and total return for shareholder transactions reported to the market may differ from the net asset value for financial reporting purposes. |
Prior to March 31, 2020, the ALPS | Red Rocks Global Opportunity Fund was known as the ALPS | Red Rocks Listed Private Equity Fund.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors and is subject to investment risks, including possible loss of the principal amount invested.
Listed Private Equity Companies are subject to various risks depending on their underlying investments, which could include, but are not limited to, additional liquidity risk, industry risk, non-U.S. security risk, currency risk, credit risk, managed portfolio risk and derivatives risk (derivatives risk is the risk that the value of the Listed Private Equity Companies’ derivative investments will fall because of pricing difficulties or lack of correlation with the underlying investment).
There are inherent risks in investing in private equity companies, which encompass financial institutions or vehicles whose principal business is to invest in and lend capital to privately held companies. Generally, little public information exists for private and thinly traded companies, and there is a risk that investors may not be able to make a fully informed investment decision.
Listed Private Equity Companies may have relatively concentrated investment portfolios, consisting of a relatively small number of holdings. A consequence of this limited number of investments is that the aggregate returns realized may be adversely impacted by the poor performance of a small number of investments, or even a single investment, particularly if a company experiences the need to write down the value of an investment.
Certain of the Fund’s investments may be exposed to liquidity risk due to low trading volume, lack of a market maker or legal restrictions limiting the ability of the Fund to sell particular securities at an advantageous price and/or time. As a result, these securities may be more difficult to value. Foreign investing involves special risks, such as currency fluctuations and political uncertainty. The Fund invests in derivatives and is subject to the risk that the value of those derivative investments will fall because of pricing difficulties or lack of correlation with the underlying investment.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
119 | October 31, 2020
ALPS | Red Rocks Global Opportunity Fund
Performance Update | October 31, 2020 (Unaudited) |
Top Ten Holdings (as a % of Net Assets) †
HarbourVest Global Private Equity, Ltd. | 6.22% |
Pantheon International PLC Fund | 5.25% |
Liberty Broadband Corp. | 4.03% |
3i Group PLC | 3.89% |
HBM Healthcare Investments AG | 3.71% |
KKR & Co., Inc. | 3.56% |
HgCapital Trust PLC | 3.25% |
Intermediate Capital Group PLC | 3.07% |
IAC/InterActiveCorp | 2.92% |
Brederode SA | 2.79% |
Top Ten Holdings | 38.69% |
† | Holdings are subject to change and my not reflect the current or future position of the portfolio. Table presents indicative values only. |
Industry Sector Allocation (as a % of Net Assets)
120 | October 31, 2020
ALPS | Red Rocks Global Opportunity Fund
Statement of Investments | October 31, 2020 |
Shares | Value (Note 2) | |||||||
CLOSED-END FUNDS (26.55%) | ||||||||
HarbourVest Global Private Equity, Ltd.(a) | 245,831 | $ | 5,497,146 | |||||
HBM Healthcare Investments AG, Class A | 11,400 | 3,275,340 | ||||||
HgCapital Trust PLC | 746,000 | 2,875,824 | ||||||
ICG Enterprise Trust PLC | 139,530 | 1,484,462 | ||||||
NB Private Equity Partners, Ltd. | 164,050 | 2,162,561 | ||||||
Pantheon International PLC Fund(a) | 164,622 | 4,638,591 | ||||||
Princess Private Equity Holding, Ltd. | 137,643 | 1,580,611 | ||||||
Standard Life Private Equity Trust PLC | 472,096 | 1,944,063 | ||||||
TOTAL CLOSED-END FUNDS | ||||||||
(Cost $19,539,317) | 23,458,598 | |||||||
COMMON STOCKS (69.90%) | ||||||||
Communications (10.79%) | ||||||||
Media (10.79%) | ||||||||
GCI Liberty, Inc., Class A(a) | 20,000 | 1,624,600 | ||||||
IAC/InterActiveCorp(a) | 21,400 | 2,583,408 | ||||||
Liberty Broadband Corp., Class C(a) | 25,100 | 3,556,921 | ||||||
Liberty Media Corp.-Liberty SiriusXM, Class A(a) | 51,200 | 1,769,984 | ||||||
9,534,913 | ||||||||
TOTAL COMMUNICATIONS | 9,534,913 | |||||||
Consumer, Non-Cyclical (6.16%) | ||||||||
Healthcare-Products (4.75%) | ||||||||
Hologic, Inc.(a) | 7,100 | 488,622 | ||||||
Koninklijke Philips NV(a) | 19,100 | 884,647 | ||||||
Stryker Corp. | 6,275 | 1,267,613 | ||||||
Thermo Fisher Scientific, Inc. | 3,300 | 1,561,296 | ||||||
4,202,178 | ||||||||
Healthcare-Services (1.41%) | ||||||||
Chemed Corp. | 2,600 | 1,243,632 | ||||||
TOTAL CONSUMER, NON-CYCLICAL | 5,445,810 | |||||||
Diversified (1.67%) | ||||||||
Holding Companies-Diversified Operations (1.67%) | ||||||||
Schouw & Co. A/S | 16,951 | 1,476,126 | ||||||
TOTAL DIVERSIFIED | 1,476,126 | |||||||
Financials (33.55%) | ||||||||
Diversified Financial Services (18.86%) | ||||||||
Apollo Global Management, Inc. | 31,000 | 1,142,660 | ||||||
Berkshire Hathaway, Inc., Class B(a) | 6,600 | 1,332,540 | ||||||
Blackstone Group, Inc., Class A | 47,000 | 2,369,740 | ||||||
Cannae Holdings, Inc.(a) | 65,700 | 2,429,586 | ||||||
EXOR N.V. | 21,700 | 1,128,979 |
Shares | Value (Note 2) | |||||||
Diversified Financial Services (continued) | ||||||||
Intermediate Capital Group PLC | 178,400 | $ | 2,709,787 | |||||
KKR & Co., Inc., Class A | 92,100 | 3,145,215 | ||||||
Partners Group Holding AG | 2,670 | 2,403,818 | ||||||
16,662,325 | ||||||||
Investment Companies (8.92%) | ||||||||
3i Group PLC | 275,000 | 3,434,680 | ||||||
Ares Capital Corp. | 85,000 | 1,175,550 | ||||||
Investor AB, B Shares | 38,200 | 2,289,669 | ||||||
Kinnevik AB, B Shares | 24,000 | 982,774 | ||||||
7,882,673 | ||||||||
Private Equity (4.05%) | ||||||||
Altamir | 29,600 | 624,316 | ||||||
Brederode SA | 29,952 | 2,463,124 | ||||||
Clairvest Group, Inc. | 12,700 | 490,918 | ||||||
3,578,358 | ||||||||
Real Estate (1.72%) | ||||||||
Brookfield Asset Management, Inc., Class A | 51,100 | 1,521,758 | ||||||
TOTAL FINANCIALS | 29,645,114 | |||||||
Industrials (10.23%) | ||||||||
Aerospace & Defense (1.44%) | ||||||||
L3Harris Technologies, Inc. | 7,900 | 1,272,769 | ||||||
Electronics (3.05%) | ||||||||
Fortive Corp. | 13,400 | 825,440 | ||||||
Lagercrantz Group AB, B Shares | 225,000 | 1,386,781 | ||||||
Vontier Corp.(a) | 16,800 | 482,832 | ||||||
2,695,053 | ||||||||
Machinery-Diversified (1.07%) | ||||||||
IDEX Corp. | 5,575 | 949,924 | ||||||
Miscellaneous Manufacturers (4.67%) | ||||||||
Carlisle Cos., Inc. | 10,300 | 1,275,861 | ||||||
Colfax Corp.(a) | 38,100 | 1,035,939 | ||||||
Danaher Corp. | 7,900 | 1,813,366 | ||||||
4,125,166 | ||||||||
TOTAL INDUSTRIALS | 9,042,912 | |||||||
Technology (4.80%) | ||||||||
Computers (1.39%) | ||||||||
Leidos Holdings, Inc. | 14,800 | 1,228,400 | ||||||
Software (3.41%) | ||||||||
Constellation Software, Inc. | 1,160 | 1,217,717 |
121 | October 31, 2020
ALPS | Red Rocks Global Opportunity Fund
Statement of Investments | October 31, 2020 |
Shares | Value (Note 2) | |||||||
Software (continued) | ||||||||
Fidelity National Information Services, Inc. | 14,400 | $ | 1,794,096 | |||||
3,011,813 | ||||||||
TOTAL TECHNOLOGY | 4,240,213 | |||||||
Utilities (2.70%) | ||||||||
Electric (2.03%) | ||||||||
Brookfield Infrastructure Partners LP | 41,800 | 1,793,220 | ||||||
Gas (0.67%) | ||||||||
Brookfield Infrastructure Corp., Class A | 10,788 | 587,623 | ||||||
TOTAL UTILITIES | 2,380,843 | |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $54,487,407) | 61,765,931 |
7-Day Yield | Shares | Value (Note 2) | ||||||||||
SHORT-TERM INVESTMENTS (3.33%) | ||||||||||||
Money Market Fund (3.33%) | ||||||||||||
State Street Institutional Treasury Plus Money Market Fund | 0.020 | % | 2,947,365 | 2,947,365 | ||||||||
TOTAL MONEY MARKET FUND | 2,947,365 | |||||||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||||||
(Cost $2,947,365) | 2,947,365 | |||||||||||
TOTAL INVESTMENTS (99.78%) | ||||||||||||
(Cost $76,974,089) | $ | 88,171,894 | ||||||||||
Other Assets In Excess Of Liabilities (0.22%) | 194,666 | |||||||||||
NET ASSETS (100.00%) | $ | 88,366,560 |
(a) | Non-Income Producing Security. |
For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets.
See Notes to Financial Statements.
122 | October 31, 2020
ALPS | Red Rocks Global Opportunity Fund
Statement of Assets and Liabilities | October 31, 2020 |
ASSETS | ||||
Investments, at value | $ | 88,171,894 | ||
Foreign currency, at value (Cost $41,780) | 41,780 | |||
Receivable for investments sold | 51,611 | |||
Receivable for shares sold | 129,299 | |||
Dividends receivable | 431,501 | |||
Prepaid expenses and other assets | 14,366 | |||
Total Assets | 88,840,451 | |||
LIABILITIES | ||||
Payable for investments purchased | 359 | |||
Payable for shares redeemed | 285,271 | |||
Investment advisory fees payable | 67,867 | |||
Administration and transfer agency fees payable | 44,501 | |||
Distribution and services fees payable | 22,623 | |||
Trustees' fees and expenses payable | 1,360 | |||
Professional fees payable | 29,484 | |||
Custody fees payable | 12,810 | |||
Accrued expenses and other liabilities | 9,616 | |||
Total Liabilities | 473,891 | |||
NET ASSETS | $ | 88,366,560 | ||
NET ASSETS CONSIST OF | ||||
Paid-in capital | $ | 79,803,730 | ||
Total distributable earnings | 8,562,830 | |||
NET ASSETS | $ | 88,366,560 | ||
INVESTMENTS, AT COST | $ | 76,974,089 | ||
PRICING OF SHARES | ||||
Investor Class: | ||||
Net Asset Value, offering and redemption price per share | $ | 6.47 | ||
Net Assets | $ | 15,580,344 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 2,406,971 | |||
Class A: | ||||
Net Asset Value, offering and redemption price per share | $ | 6.45 | ||
Net Assets | $ | 2,543,575 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 394,632 | |||
Maximum offering price per share ((NAV/0.9450), based on maximum sales charge of 5.50% of the offering price) | $ | 6.82 | ||
Class C: | ||||
Net Asset Value, offering and redemption price per share(a) | $ | 5.98 | ||
Net Assets | $ | 9,061,464 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 1,514,085 | |||
Class I: | ||||
Net Asset Value, offering and redemption price per share | $ | 6.61 | ||
Net Assets | $ | 55,950,000 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 8,469,554 | |||
Class R: | ||||
Net Asset Value, offering and redemption price per share | $ | 5.23 | ||
Net Assets | $ | 5,231,177 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 999,271 |
(a) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. For a description of a possible sales charge, please see the Fund's Prospectus. |
See Notes to Financial Statements.
123 | October 31, 2020
ALPS | Red Rocks Global Opportunity Fund
Statement of Operations | For the Year Ended October 31, 2020 |
INVESTMENT INCOME | ||||
Dividends | $ | 3,224,612 | ||
Foreign taxes withheld on dividends | (57,256 | ) | ||
Total Investment Income | 3,167,356 | |||
EXPENSES | ||||
Investment advisory fees | 1,166,796 | |||
Administrative fees | 127,377 | |||
Transfer agency fees | 161,100 | |||
Distribution and service fees | ||||
Investor Class | 62,991 | |||
Class A | 5,042 | |||
Class C | 127,469 | |||
Class R | 27,573 | |||
Professional fees | 34,210 | |||
Reports to shareholders and printing fees | 30,069 | |||
State registration fees | 73,092 | |||
Insurance fees | 2,940 | |||
Custody fees | 39,168 | |||
Trustees' fees and expenses | 8,212 | |||
Miscellaneous expenses | 17,571 | |||
Total Expenses | 1,883,610 | |||
Net Investment Income | 1,283,746 | |||
Net realized gain on investments | 10,767,212 | |||
Net realized gain on foreign currency transactions | 10,331 | |||
Net Realized Gain | 10,777,543 | |||
Net change in unrealized depreciation on investments | (22,157,211 | ) | ||
Net change in unrealized appreciation on translation of assets and liabilities denominated in foreign currencies | 28,533 | |||
Net Change in Unrealized Depreciation | (22,128,678 | ) | ||
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS | (11,351,135 | ) | ||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (10,067,389 | ) |
See Notes to Financial Statements.
124 | October 31, 2020
ALPS | Red Rocks Global Opportunity Fund
Statements of Changes in Net Assets
For the Year Ended October 31, 2020(a) | For the Year Ended October 31, 2019 | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 1,283,746 | $ | 3,375,093 | ||||
Net realized gain | 10,777,543 | 16,601,165 | ||||||
Net change in unrealized appreciation/(depreciation) | (22,128,678 | ) | 11,422,494 | |||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | (10,067,389 | ) | 31,398,752 | |||||
TOTAL DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class | (3,586,004 | ) | (1,366,268 | ) | ||||
Class A | (115,589 | ) | (1,424 | ) | ||||
Class C | (2,358,134 | ) | (682,401 | ) | ||||
Class I | (19,020,392 | ) | (7,051,747 | ) | ||||
Class R | (961,289 | ) | (235,847 | ) | ||||
Net Decrease in Net Assets from Distributions | (26,041,408 | ) | (9,337,687 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class | 5,255,428 | 6,040,727 | ||||||
Class A | 3,213,948 | 1,245,481 | ||||||
Class C | 641,538 | 797,221 | ||||||
Class I | 26,449,314 | 45,545,121 | ||||||
Class R | 883,978 | 1,188,158 | ||||||
Dividends reinvested | ||||||||
Investor Class | 2,760,858 | 1,088,789 | ||||||
Class A | 79,919 | 1,283 | ||||||
Class C | 1,803,296 | 523,242 | ||||||
Class I | 15,657,972 | 5,458,126 | ||||||
Class R | 959,137 | 235,270 | ||||||
Shares redeemed, net of redemption fees | ||||||||
Investor Class | (12,347,153 | ) | (21,243,636 | ) | ||||
Class A | (1,413,331 | ) | (572,568 | ) | ||||
Class C | (6,439,102 | ) | (5,843,300 | ) | ||||
Class I | (100,944,449 | ) | (99,688,970 | ) | ||||
Class R | (1,261,496 | ) | (1,010,240 | ) | ||||
Net Decrease in Net Assets Derived from Beneficial Interest Transactions | (64,700,143 | ) | (66,235,296 | ) | ||||
Net decrease in net assets | (100,808,940 | ) | (44,174,231 | ) | ||||
NET ASSETS | ||||||||
Beginning of year | 189,175,500 | 233,349,731 | ||||||
End of year | $ | 88,366,560 | $ | 189,175,500 |
(a) | Prior to March 31, 2020, the ALPS/Red Rocks Global Opportunity Fund was known as the ALPS/Red Rocks Listed Private Equity Fund. |
See Notes to Financial Statements.
125 | October 31, 2020
ALPS | Red Rocks Global Opportunity Fund – Investor Class
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020(a) | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018(b) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 7.71 | $ | 6.79 | $ | 8.05 | $ | 6.29 | $ | 6.76 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(c) | 0.06 | 0.12 | 0.06 | 0.12 | 0.06 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.23 | ) | 1.09 | (0.37 | ) | 1.74 | (0.04 | ) | ||||||||||||
Total from investment operations | (0.17 | ) | 1.21 | (0.31 | ) | 1.86 | 0.02 | |||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.60 | ) | (0.06 | ) | (0.70 | ) | (0.10 | ) | (0.22 | ) | ||||||||||
From net realized gains | (0.47 | ) | (0.23 | ) | (0.25 | ) | – | (0.27 | ) | |||||||||||
Total distributions | (1.07 | ) | (0.28 | ) | (0.95 | ) | (0.10 | ) | (0.49 | ) | ||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (d) | 0.00 | (d) | 0.00 | (d) | 0.00 | (d) | 0.00 | (d) | ||||||||||
Net increase/(decrease) in net asset value | (1.24 | ) | 0.92 | (1.26 | ) | 1.76 | (0.47 | ) | ||||||||||||
Net asset value, end of year | $ | 6.47 | $ | 7.71 | $ | 6.79 | $ | 8.05 | $ | 6.29 | ||||||||||
TOTAL RETURN(e) | (3.20 | )% | 18.77 | % | (4.23 | )% | 29.97 | % | 0.76 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 15,580 | $ | 25,061 | $ | 35,775 | $ | 55,538 | $ | 128,920 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements(f) | 1.47 | % | 1.44 | % | 1.40 | % | 1.38 | % | 1.47 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements(f) | 1.47 | % | 1.44 | % | 1.40 | % | 1.38 | % | 1.47 | % | ||||||||||
Ratio of net investment income to average net assets(f) | 0.86 | % | 1.71 | % | 0.86 | % | 1.63 | % | 1.07 | % | ||||||||||
Portfolio turnover rate(g) | 41 | % | 28 | % | 29 | % | 31 | % | 30 | % |
(a) | Prior to March 31, 2020, the ALPS/Red Rocks Global Opportunity Fund was known as the ALPS/Red Rocks Listed Private Equity Fund. |
(b) | Prior to December 1, 2017, Investor Class was known as Class A. |
(c) | Calculated using the average shares method. |
(d) | Less than $0.005 or ($0.005) per share. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(f) | The ratios exclude the impact of expenses of the underlying funds in which the Fund invests as represented in the Statement of Investments. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
126 | October 31, 2020
ALPS | Red Rocks Global Opportunity Fund – Class A
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020(a) | For the Year Ended October 31, 2019 | For the Period June 12, 2018 (Commencement of Operations) to October 31, 2018 | ||||||||||
Net asset value, beginning of period | $ | 7.67 | $ | 6.79 | $ | 7.23 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(b) | 0.04 | 0.20 | 0.01 | |||||||||
Net realized and unrealized gain/(loss) | (0.20 | ) | 0.99 | (0.45 | ) | |||||||
Total from investment operations | (0.16 | ) | 1.19 | (0.44 | ) | |||||||
DISTRIBUTIONS: | ||||||||||||
From net investment income | (0.60 | ) | (0.08 | ) | – | |||||||
From net realized gains | (0.47 | ) | (0.23 | ) | – | |||||||
Total distributions | (1.07 | ) | (0.31 | ) | – | |||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.01 | – | – | |||||||||
Net increase/(decrease) in net asset value | (1.22 | ) | 0.88 | (0.44 | ) | |||||||
Net asset value, end of year | $ | 6.45 | $ | 7.67 | $ | 6.79 | ||||||
TOTAL RETURN(c) | (2.92 | )% | 18.64 | % | (6.09 | )% | ||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||
Net assets, end of year (000s) | $ | 2,544 | $ | 790 | $ | 9 | ||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements(d) | 1.51 | % | 1.48 | % | 1.48 | %(e) | ||||||
Ratio of expenses to average net assets including fee waivers and reimbursements(d) | 1.51 | % | 1.48 | % | 1.48 | %(e) | ||||||
Ratio of net investment income to average net assets(d) | 0.62 | % | 2.74 | % | 0.37 | %(e) | ||||||
Portfolio turnover rate(f) | 41 | % | 28 | % | 29 | % |
(a) | Prior to March 31, 2020, the ALPS/Red Rocks Global Opportunity Fund was known as the ALPS/Red Rocks Listed Private Equity Fund. |
(b) | Calculated using the average shares method. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(d) | The ratios exclude the impact of expenses of the underlying funds in which the Fund invests as represented in the Statement of Investments. |
(e) | Annualized. |
(f) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
127 | October 31, 2020
ALPS | Red Rocks Global Opportunity Fund – Class C
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020(a) | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 7.25 | $ | 6.41 | $ | 7.66 | $ | 6.04 | $ | 6.53 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(b) | 0.01 | 0.06 | 0.01 | 0.06 | 0.03 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.22 | ) | 1.03 | (0.34 | ) | 1.65 | (0.03 | ) | ||||||||||||
Total from investment operations | (0.21 | ) | 1.09 | (0.33 | ) | 1.71 | – | |||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.59 | ) | (0.02 | ) | (0.67 | ) | (0.09 | ) | (0.22 | ) | ||||||||||
From net realized gains | (0.47 | ) | (0.23 | ) | (0.25 | ) | – | (0.27 | ) | |||||||||||
Total distributions | (1.06 | ) | (0.25 | ) | (0.92 | ) | (0.09 | ) | (0.49 | ) | ||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (c) | 0.00 | (c) | – | 0.00 | (c) | 0.00 | (c) | |||||||||||
Net increase/(decrease) in net asset value | (1.27 | ) | 0.84 | (1.25 | ) | 1.62 | (0.49 | ) | ||||||||||||
Net asset value, end of year | $ | 5.98 | $ | 7.25 | $ | 6.41 | $ | 7.66 | $ | 6.04 | ||||||||||
TOTAL RETURN(d) | (4.01 | )% | 17.83 | % | (4.88 | )% | 28.79 | % | 0.34 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 9,061 | $ | 16,256 | $ | 18,847 | $ | 18,981 | $ | 14,784 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements(e) | 2.22 | % | 2.16 | % | 2.12 | % | 2.13 | % | 2.16 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements(e) | 2.22 | % | 2.16 | % | 2.12 | % | 2.13 | % | 2.16 | % | ||||||||||
Ratio of net investment income to average net assets(e) | 0.12 | % | 0.86 | % | 0.15 | % | 0.83 | % | 0.49 | % | ||||||||||
Portfolio turnover rate(f) | 41 | % | 28 | % | 29 | % | 31 | % | 30 | % |
(a) | Prior to March 31, 2020, the ALPS/Red Rocks Global Opportunity Fund was known as the ALPS/Red Rocks Listed Private Equity Fund. |
(b) | Calculated using the average shares method. |
(c) | Less than $0.005 or ($0.005) per share. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(e) | The ratios exclude the impact of expenses of the underlying funds in which the Fund invests as represented in the Statement of Investments. |
(f) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
128 | October 31, 2020
ALPS | Red Rocks Global Opportunity Fund – Class I
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020(a) | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 7.84 | $ | 6.92 | $ | 8.18 | $ | 6.39 | $ | 6.83 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(b) | 0.07 | 0.13 | 0.09 | 0.13 | 0.09 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.23 | ) | 1.10 | (0.37 | ) | 1.76 | (0.03 | ) | ||||||||||||
Total from investment operations | (0.16 | ) | 1.23 | (0.28 | ) | 1.89 | 0.06 | |||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.60 | ) | (0.08 | ) | (0.73 | ) | (0.10 | ) | (0.23 | ) | ||||||||||
From net realized gains | (0.47 | ) | (0.23 | ) | (0.25 | ) | – | (0.27 | ) | |||||||||||
Total distributions | (1.07 | ) | (0.31 | ) | (0.98 | ) | (0.10 | ) | (0.50 | ) | ||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (c) | 0.00 | (c) | 0.00 | (c) | 0.00 | (c) | 0.00 | (c) | ||||||||||
Net increase/(decrease) in net asset value | (1.23 | ) | 0.92 | (1.26 | ) | 1.79 | (0.44 | ) | ||||||||||||
Net asset value, end of year | $ | 6.61 | $ | 7.84 | $ | 6.92 | $ | 8.18 | $ | 6.39 | ||||||||||
TOTAL RETURN(d) | (2.93 | )% | 18.98 | % | (3.87 | )% | 30.09 | % | 1.27 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 55,950 | $ | 141,286 | $ | 174,034 | $ | 138,572 | $ | 180,892 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements(e) | 1.22 | % | 1.19 | % | 1.15 | % | 1.16 | % | 1.18 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements(e) | 1.22 | % | 1.19 | % | 1.15 | % | 1.16 | % | 1.18 | % | ||||||||||
Ratio of net investment income to average net assets(e) | 1.08 | % | 1.80 | % | 1.15 | % | 1.85 | % | 1.48 | % | ||||||||||
Portfolio turnover rate(f) | 41 | % | 28 | % | 29 | % | 31 | % | 30 | % |
(a) | Prior to March 31, 2020, the ALPS/Red Rocks Global Opportunity Fund was known as the ALPS/Red Rocks Listed Private Equity Fund. |
(b) | Calculated using the average shares method. |
(c) | Less than $0.005 or ($0.005) per share. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(e) | The ratios exclude the impact of expenses of the underlying funds in which the Fund invests as represented in the Statement of Investments. |
(f) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
129 | October 31, 2020
ALPS | Red Rocks Global Opportunity Fund – Class R
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020(a) | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 6.45 | $ | 5.75 | $ | 6.97 | $ | 5.48 | $ | 5.96 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(b) | 0.03 | 0.09 | 0.04 | 0.09 | 0.06 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.18 | ) | 0.90 | (0.30 | ) | 1.50 | (0.05 | ) | ||||||||||||
Total from investment operations | (0.15 | ) | 0.99 | (0.26 | ) | 1.59 | 0.01 | |||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.60 | ) | (0.06 | ) | (0.71 | ) | (0.10 | ) | (0.22 | ) | ||||||||||
From net realized gains | (0.47 | ) | (0.23 | ) | (0.25 | ) | – | (0.27 | ) | |||||||||||
Total distributions | (1.07 | ) | (0.29 | ) | (0.96 | ) | (0.10 | ) | (0.49 | ) | ||||||||||
Net increase/(decrease) in net asset value | (1.22 | ) | 0.70 | (1.22 | ) | 1.49 | (0.48 | ) | ||||||||||||
Net asset value, end of year | $ | 5.23 | $ | 6.45 | $ | 5.75 | $ | 6.97 | $ | 5.48 | ||||||||||
TOTAL RETURN(c) | (3.56 | )% | 18.47 | % | (4.31 | )% | 29.51 | % | 0.67 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 5,231 | $ | 5,782 | $ | 4,684 | $ | 4,236 | $ | 2,852 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements(d) | 1.68 | % | 1.61 | % | 1.57 | % | 1.56 | % | 1.63 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements(d) | 1.68 | % | 1.61 | % | 1.57 | % | 1.56 | % | 1.63 | % | ||||||||||
Ratio of net investment income to average net assets(d) | 0.61 | % | 1.51 | % | 0.70 | % | 1.43 | % | 1.05 | % | ||||||||||
Portfolio turnover rate(e) | 41 | % | 28 | % | 29 | % | 31 | % | 30 | % |
(a) | Prior to March 31, 2020, the ALPS/Red Rocks Global Opportunity Fund was known as the ALPS/Red Rocks Listed Private Equity Fund. |
(b) | Calculated using the average shares method. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(d) | The ratios exclude the impact of expenses of the underlying funds in which the Fund invests as represented in the Statement of Investments. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
130 | October 31, 2020
Clough China Fund |
Management Commentary | October 31, 2020 (Unaudited) |
The Clough China Fund (the “Fund”) had a net return of 31.65% for Class I, compared to 35.53% for the Morningstar China Index, for the fiscal year ending October 31, 2020. From an individual stock perspective, over the fiscal year Tencent Holdings Ltd., Alibaba Group Holding Ltd, Meituan, JD.com Inc. and Hong Kong Television Network Ltd. contributed the most to performance while China Life Insurance Co Ltd., ANTA Sports Products Ltd., CNOOC Ltd., Xtep International Holdings Ltd. and Applied Materials Inc. detracted the most.
Over this past fiscal year, the market has experienced volatility, rallying through January, selling off sharply through March due to the COVID-19 pandemic, and has since rebounded sharply as the economy has begun to recover.
The Fund’s top contributors for the year:
1. | Tencent Holdings Ltd. is China’s largest gaming and social networking platform and has historically been one of the largest positions in the Fund, as the company continued to deliver consistent revenue growth on the back of its dominant position as a gaming and social media giant. Tencent had a very strong pipeline of new games being released this year and has been a big beneficiary of its customers working from home. |
2. | Alibaba Group Holding Ltd. has historically been one of the Fund’s larger positions given our belief in the Chinese consumer and the company’s dominant position in e-commerce. China is now the largest e-commerce market in the world as it accounts for 42% of global retail e-commerce transactions compared to the U.S.’s 24% share, according to a McKinsey Global Institute study. Similar to Tencent, Alibaba was also a big beneficiary of consumers working from home, as e-commerce adoption spiked across categories and geographies. Structurally, we are bullish Alibaba, especially as it is expected to make an initial public offering (“IPO”) its financial services arm, Ant Group Co Ltd., which has the potential to further unlock shareholder value. Alibaba had planned an IPO of Ant Group earlier this year, but the IPO was suspended due to regulatory hurdles. We expect the IPO is likely to occur once these hurdles have been addressed. |
3. | Meituan has benefited as the leader in local consumer products and retail services in China. Food delivery, its biggest business, saw significant tailwinds from the pandemic. This market is huge, and they continue to execute very well in a duopoly market with Alibaba. |
4. | Similar to Alibaba, JD.com Inc. has also benefited from the tailwinds that e-commerce has experienced this year. Moreover, JD’s lack of dependence on third-party logistics providers also helped it throughout the pandemic as many logistics providers had their operations disrupted. Furthermore, margins continue to improve which has helped the stock re-rate. |
5. | Hong Kong Television Network Ltd. has also benefitted from the shift to online commerce. The long-term bull case hinges on the company’s consulting model enabling small businesses shift online. |
The Fund’s top detractors for the year:
1. | At China Life Insurance Co. Ltd., we were excited by the potential of a re-rating story as new management tried to turn around the operations. However, the pandemic affected operations and had a negative impact on the stock. |
2. | ANTA Sports Products Ltd. has historically performed well. However, this year ANTA was impacted by the pandemic driven slowdown in the overseas markets (e.g., Europe). The company also made operational changes to their distribution in China which negatively impacted the stock. |
3. | CNOOC Ltd., in our opinion is one of the better run energy companies in China. However, the whole sector came under increased pressure as crude oil prices declined sharply as economies began to shut down in response to the pandemic and work from home became the norm. |
4. | Xtep International Holdings Ltd. had the potential to re-rate similar to what ANTA Sports had done in the past few years, by building a brands platform through acquisitions. However, management has struggled to execute operationally, and we have exited the position. |
5. | Applied Materials Inc. could be a very important stock if China is able to realize its ambitions of building their semiconductor manufacturing business. However, the stock has been volatile given the pandemic-driven slowdown as well as U.S.-China trade tensions. |
We expect the Chinese markets are likely to have increasing potential to outperform. The country’s 4-5% gross domestic product (“GDP”) growth in 2020 stands out. China’s economy has been responsible for one third of global growth in recent years and its size is now approaching that of the U.S. China’s geopolitical relationship with other large nations is poor but its domestic market is so large, and it is growing at such a rate that global businesses simply have to be there to be relevant. We believe total decoupling is unlikely. Companies have spent the past 25 years building manufacturing and logistics in China, and no country offers the combination of high-quality labor, proximity to suppliers and a large local market. Apple Inc., for example, may find it difficult to replace China as the primary assembler of the iPhone.
We believe the profit cycle in China is strong. Urbanization is estimated to grow from approximately 65% of the population to 85%. The drive toward consumerism will continue and productivity gains from heavy technology investment will offset a slowing labor force. China’s productivity is 20% of the U.S. and has room to grow, and since productivity and profits are highly correlated, so are profits. Domestic savings rates are still high so China has no need for foreign capital, yet foreign investors will want to own Chinese assets. In mid-October, China issued a $6 billion bond offering which was 4-5 times oversubscribed. Coupon yields ranged from 0.40% for a 3-year note to 2.25% for a 30-year bond. Proceeds will go to China-based companies which need to access materials and pay for them in U.S. dollars.
131 | October 31, 2020
Clough China Fund |
Management Commentary | October 31, 2020 (Unaudited) |
The affluent Chinese consumer is, in our view, the key to the investment opportunity. World class companies in Internet and e-commerce services, healthcare and even industrial and construction equipment offer growth prospects increasingly unavailable in western economies burdened by high debt loads and declining working-age populations. Sales of cranes and construction equipment which have been declining for years are booming again as a more affluent population yearns to avoid manual labor. Reporting growth of 40-50% annually, they are replacing old machinery, taking share from companies such as Caterpillar Inc. and Japanese suppliers, and riding an export curve generated by China’s Belt and Road Initiative.
The flow of capital from both mainland China and foreign investors may well bolster the Hong Kong Exchanges & Clearing Ltd., a current holding in the Fund. Wall Street continues to strike up more deals with Chinese institutions. In our view, China is simply too weak in global financial services to go it alone and the purpose of the draconian securities law in Hong Kong is to assure political stability there. In return for the ability to operate their own mutual fund companies, U.S. financial companies appear willing to transfer their financial intellectual property. If Hong Kong is slated to be China’s Wall Street, the investment implications are huge. In the midst of trade wars, China is welcoming U.S. financial institutions to offer financial services with open arms. BlackRock Inc. is establishing joint ventures with Chinese state-owned banks, The Vanguard Group announced a financial center in Shanghai and JPMorgan Chase & Co. took on full ownership of a Chinese wealth management company.
Anupam Bose, Portfolio Manager
Chuck Clough, Portfolio Manager
Investments in international and emerging markets securities include exposure to risks such as currency fluctuations, foreign taxes and regulations, and the potential for illiquid markets and political instability.
The views of the authors and information discussed in this commentary are as of the date of publication, are subject to change, and may not reflect the writer's current views. The views expressed are those of the authors only, and represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the fund(s) or any securities or any sectors mentioned in this letter. The subject matter contained in this letter has been derived from several sources believed to be reliable and accurate at the time of compilation. Neither ALPS, Advisors, Inc., Clough Capital Partners, LP, nor the Fund accepts any liability for losses either direct or consequential caused by the use of this information.
Past performance is no guarantee of future results. Dividends are not guaranteed and are subject to change or elimination. Investments in international and emerging markets securities include exposure to risks such as currency fluctuations, foreign taxes and regulations, and the potential for illiquid markets and political instability.
ALPS Portfolio Solutions Distributor, Inc., ALPS Distributors, Inc. and ALPS Advisors Inc. are affiliated.
132 | October 31, 2020
Clough China Fund |
Performance Update | October 31, 2020 (Unaudited) |
Performance of $100,000 Initial Investment (as of October 31, 2020)
Comparison of change in value of a $100,000 investment
The chart above represents historical performance of a hypothetical investment of $100,000 in the Fund. Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns (as of October 31, 2020)
1 Year5 | 3 Year | 5 Year | 10 Year | Since Inception1 | Total Expense Ratio | What You Pay2 | |
Class I (NAV) | 31.65% | 3.51% | 7.24% | 4.87% | 10.41% | 1.66% | 1.37% |
Investor 3 (NAV) | 31.35% | 3.27% | 6.98% | 4.57% | 10.01% | 1.90% | 1.62% |
Class A (NAV) | 31.30% | 3.24% | 6.96% | 4.56% | 10.00% | 1.89% | 1.62% |
Class A (MOP) | 24.07% | 1.32% | 5.76% | 3.97% | 9.59% | ||
Class C (NAV) | 30.34% | 2.50% | 6.18% | 3.79% | 9.19% | 2.65% | 2.37% |
Class C (CDSC) | 29.34% | 2.50% | 6.18% | 3.79% | 9.19% | ||
Morningstar China Index4 | 35.53% | 10.12% | 12.66% | 6.70% | 11.83% |
Performance data quoted represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the performance quoted. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold, may be worth more or less than the original cost. Performance reflects the deduction of management fees and other applicable expenses and includes reinvested distributions and capital gains. The Fund imposes a 2.00% redemption fee on shares held for less than 30 days. Performance shown does not include the redemption fee, which, if reflected, would reduce the performance quoted. For the most current month-end performance data please call 1.866.759.5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Contingent Deferred Sales Charge (CDSC) performance for Class C shares includes a 1.00% CDSC on Class C shares redeemed within 12 months of purchase. Performance shown at Net Asset Value (NAV) does not include these sales charges and would have been lower had it been taken into account.
On January 15, 2010, the Old Mutual China Fund (the “Predecessor Fund”) was reorganized into the Clough China Fund (the “Fund”). The historical performance shown for periods prior to January 15, 2010 reflects the historical information for the Predecessor Fund. Clough Capital Partners did not serve as investment advisor or sub-advisor to the Predecessor Fund.
Performance for Class A shares prior to June 12, 2018 reflects the historical performance of the respective Fund’s Investor Class shares, calculated using the fees and expenses of Class A shares.
133 | October 31, 2020
Clough China Fund |
Performance Update | October 31, 2020 (Unaudited) |
1 | Prior Fund Inception date of December 30, 2005. |
2 | What You Pay reflects the Advisor’s decision to contractually limit expenses through February 28, 2021. Please see the prospectus dated February 28, 2020 for additional information. Effective August 18, 2020 the prospectus was supplemented with updated expense information. |
3 | Prior to December 1, 2017, Investor Class was known as Class A. |
4 | The Morningstar China Index measures the performance of China's equity markets targeting the top 97% of stocks by market capitalization. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. One may not invest directly in an index. |
5 | Excludes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value and total return for shareholder transactions reported to the market may differ from the net asset value for financial reporting purposes. |
The Fund is “non-diversified” and will generally be more volatile than diversified funds.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Investing in China and Hong Kong involves risk and considerations not present when investing in more established securities markets. The Fund may be more susceptible to the economic, market, political and local risks of these regions than a fund that is more geographically diversified.
Top Ten Holdings (as a % of Net Assets) † | |
Alibaba Group Holding, Ltd. | 14.79% |
Tencent Holdings, Ltd. | 14.63% |
Meituan Dianping | 6.23% |
JD.com, Inc. | 3.28% |
Xinyi Glass Holdings, Ltd. | 2.44% |
China Construction Bank Corp. | 2.41% |
NetEase, Inc. | 2.32% |
Wuxi Biologics Cayman, Inc. | 2.29% |
Hong Kong Television Network, Ltd. | 2.15% |
New Oriental Education & Technology Group, Inc. | 2.06% |
Top Ten Holdings | 52.60% |
† | Holdings are subject to change. Calculated as a percent of net assets. Exposure figures reported include the notional value of total return swaps and exclude cash and cash equivalents. |
Sector Allocation^ (as a % of Net Assets)
^ | Holdings are subject to change. Calculated as a percent of net assets. Exposure figures reported include the notional value of total return swaps. |
134 | October 31, 2020
Clough China Fund |
Statement of Investments | October 31, 2020 |
Shares | Value (Note 2) | |||||||
COMMON STOCKS (90.82%) | ||||||||
Communications (23.15%) | ||||||||
Entertainment Content (4.33%) | ||||||||
Bilibili, Inc., Sponsored ADR(a) | 13,600 | $ | 607,512 | |||||
NetEase, Inc., ADR(b) | 10,825 | 939,502 | ||||||
Sea, Ltd., ADR(a) | 1,300 | 205,010 | ||||||
1,752,024 | ||||||||
Internet Media & Services (16.11%) | ||||||||
Autohome, Inc., ADR | 6,200 | 592,410 | ||||||
Tencent Holdings, Ltd. | 77,500 | 5,921,438 | ||||||
6,513,848 | ||||||||
Telecommunications (2.71%) | ||||||||
21Vianet Group, Inc., ADR(a) | 17,800 | 408,688 | ||||||
GDS Holdings, Ltd., ADR(a) | 8,195 | 688,708 | ||||||
1,097,396 | ||||||||
TOTAL COMMUNICATIONS | 9,363,268 | |||||||
Consumer Discretionary (34.71%) | ||||||||
Apparel & Textile Products (0.76%) | ||||||||
Samsonite International SA(a) | 300,300 | 306,351 | ||||||
Automotive (0.78%) | ||||||||
BYD Co., Ltd., Class H | 9,000 | 181,933 | ||||||
Geely Automobile Holdings, Ltd. | 65,000 | 133,566 | ||||||
315,499 | ||||||||
Consumer Services (4.02%) | ||||||||
Cathay Media And Education Group, Inc.(a) | 257,000 | 134,845 | ||||||
New Oriental Education & Technology Group, Inc., Sponsored ADR(a)(b) | 5,200 | 833,976 | ||||||
TAL Education Group, ADR(a)(b) | 9,900 | 657,954 | ||||||
1,626,775 | ||||||||
E-Commerce Discretionary (28.16%) | ||||||||
Alibaba Group Holding, Ltd., Sponsored ADR(a)(b) | 19,647 | 5,986,244 | ||||||
Hong Kong Television Network, Ltd.(a) | 585,000 | 870,846 | ||||||
JD.com, Inc., ADR(a) | 16,300 | 1,328,776 | ||||||
Meituan, Class B(a) | 67,600 | 2,520,073 | ||||||
Pinduoduo, Inc., ADR(a) | 7,600 | 683,848 | ||||||
11,389,787 | ||||||||
Retail - Discretionary (0.99%) | ||||||||
Li Ning Co., Ltd. | 77,343 | 403,107 | ||||||
TOTAL CONSUMER DISCRETIONARY | 14,041,519 |
Shares | Value (Note 2) | |||||||
Consumer Staples (0.86%) | ||||||||
Retail - Consumer Staples (0.86%) | ||||||||
Sun Art Retail Group, Ltd. | 320,585 | $ | 347,336 | |||||
TOTAL CONSUMER STAPLES | 347,336 | |||||||
Energy (1.17%) | ||||||||
Renewable Energy (1.17%) | ||||||||
Xinyi Solar Holdings, Ltd. | 260,000 | 474,980 | ||||||
TOTAL ENERGY | 474,980 | |||||||
Financials (9.56%) | ||||||||
Banking (4.71%) | ||||||||
Bank of China, Ltd., Class H | 1,202,437 | 379,803 | ||||||
China Construction Bank Corp., Class H | 1,417,080 | 976,529 | ||||||
Industrial & Commercial Bank of China, Ltd., Class H | 961,967 | 546,267 | ||||||
1,902,599 | ||||||||
Institutional Financial Services (1.48%) | ||||||||
Hong Kong Exchanges and Clearing, Ltd. | 12,500 | 598,984 | ||||||
Insurance (3.37%) | ||||||||
AIA Group, Ltd. | 59,792 | 569,051 | ||||||
China Life Insurance Co., Ltd., Class H | 128,404 | 280,168 | ||||||
Ping An Insurance Group Co. of China, Ltd., Class H | 49,765 | 514,554 | ||||||
1,363,773 | ||||||||
TOTAL FINANCIALS | 3,865,356 | |||||||
Health Care (5.54%) | ||||||||
Biotech & Pharma (3.25%) | ||||||||
Alphamab Oncology(a)(c) | 124,099 | 251,244 | ||||||
Moderna, Inc.(a) | 10,030 | 676,724 | ||||||
Zai Lab, Ltd., ADR(a) | 4,720 | 387,276 | ||||||
1,315,244 | ||||||||
Health Care Facilities & Services (2.29%) | ||||||||
Wuxi Biologics Cayman, Inc.(a) | 33,000 | 926,763 | ||||||
TOTAL HEALTH CARE | 2,242,007 | |||||||
Materials (2.90%) | ||||||||
Construction Materials (2.44%) | ||||||||
Xinyi Glass Holdings, Ltd. | 450,000 | 988,217 |
135 | October 31, 2020
Clough China Fund |
Statement of Investments | October 31, 2020 |
Shares | Value (Note 2) | |||||||
Metals & Mining (0.46%) | ||||||||
Zhaojin Mining Industry Co., Ltd., Class H | 144,000 | $ | 186,416 | |||||
TOTAL MATERIALS | 1,174,633 | |||||||
Real Estate (5.14%) | ||||||||
Real Estate Owners & Developers (2.92%) | ||||||||
KWG Group Holdings, Ltd. | 422,000 | 559,610 | ||||||
Longfor Group Holdings, Ltd. | 34,000 | 186,290 | ||||||
Shimao Group Holdings, Ltd. | 123,000 | 435,704 | ||||||
1,181,604 | ||||||||
Real Estate Services (2.22%) | ||||||||
KWG Living Group Holdings, Ltd.(a) | 294,067 | 230,626 | ||||||
Powerlong Commercial Management Holdings, Ltd. | 219,000 | 598,942 | ||||||
Shimao Services Holdings, Ltd.(a) | 31,606 | 67,676 | ||||||
897,244 | ||||||||
TOTAL REAL ESTATE | 2,078,848 | |||||||
Technology (7.79%) | ||||||||
Semiconductors (4.45%) | ||||||||
Infineon Technologies AG | 4,908 | 136,644 | ||||||
Lam Research Corp.(b) | 665 | 227,483 | ||||||
Qorvo, Inc.(a) | 3,880 | 494,157 | ||||||
Renesas Electronics Corp.(a) | 24,500 | 202,239 | ||||||
Skyworks Solutions, Inc. | 1,440 | 203,458 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 15,000 | 226,945 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd., Sponsored ADR | 3,700 | 310,319 | ||||||
1,801,245 | ||||||||
Technology Hardware (3.34%) | ||||||||
Apple, Inc. | 5,570 | 606,350 | ||||||
Lumentum Holdings, Inc.(a) | 2,600 | 214,994 | ||||||
Silergy Corp. | 3,000 | 184,959 | ||||||
Xiaomi Corp., Class B(a) | 120,400 | 342,422 | ||||||
1,348,725 | ||||||||
TOTAL TECHNOLOGY | 3,149,970 | |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $24,593,610) | 36,737,917 |
Shares | Value (Note 2) | |||||||||||
SHORT TERM INVESTMENTS (2.15%) | ||||||||||||
Money Market Fund (2.15%) | ||||||||||||
Blackrock Liquidity Funds, T-Fund | 0.040 | % | 869,747 | $ | 869,747 | |||||||
TOTAL SHORT TERM INVESTMENTS | ||||||||||||
(Cost $869,747) | 869,747 | |||||||||||
TOTAL INVESTMENTS (92.97%) | ||||||||||||
(Cost $25,463,357) | $ | 37,607,664 | ||||||||||
Other Assets In Excess Of Liabilities (7.03%)(d) | 2,843,204 | |||||||||||
NET ASSETS (100.00%) | $ | 40,450,868 |
(a) | Non-Income Producing Security. |
(b) | Security, or portion of security, is being held as collateral for total return swap contracts aggregating a total market value of $1,976,834. |
(c) | Security, or a portion of security, is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of October 31, 2020, the aggregate market value of those securities was $6,879, representing 0.02% of net assets. |
(d) | Includes cash which is being held as collateral for total return swap contracts in the amount of $1,028,977. |
136 | October 31, 2020
Clough China Fund |
Statement of Investments | October 31, 2020 |
TOTAL RETURN SWAP CONTRACTS(a)
Swap Counterparty | Reference Obligation | Notional Amount | Floating Rate/Fixed Amount Paid by Fund* | Termination Date | Value | Unrealized Appreciation | |||||||||||
Morgan Stanley | C&S Paper Co., Ltd. | $ | 295,967 | 1D FEDEF + 255 BPS | 1/3/2022 | $ | 304,195 | $ | 8,228 | ||||||||
Morgan Stanley | China International Travel SER | 368,816 | 1D FEDEF + 250 BPS | 1/3/2022 | 573,838 | 205,022 | |||||||||||
Morgan Stanley | Contemporary Amperex Technology Co., Ltd. | 117,690 | 1D FEDEF + 250 BPS | 1/3/2022 | 147,560 | 29,870 | |||||||||||
Morgan Stanley | Kweichow Moutai Co., Ltd. | 540,199 | 1D FEDEF + 250 BPS | 1/3/2022 | 707,120 | 166,921 | |||||||||||
Morgan Stanley | Luxshare Precision Industry Co., Ltd. | 539,409 | 1D FEDEF + 250 BPS | 1/3/2022 | 747,196 | 207,787 | |||||||||||
Morgan Stanley | Proya Cosmetics Co., Ltd. | 188,363 | 1D FEDEF + 250 BPS | 1/3/2022 | 201,525 | 13,162 | |||||||||||
Morgan Stanley | Sany Heavy Industry Co., Ltd. | 435,656 | 1D FEDEF + 250 BPS | 1/3/2022 | 601,480 | 165,824 | |||||||||||
Morgan Stanley | Shenzhen Mindray Bio-Med Electronics Co., Ltd. | 178,966 | 1D FEDEF + 250 BPS | 1/3/2022 | 254,010 | 75,044 | |||||||||||
Morgan Stanley | Wuliangye Yibin Co., Ltd. | 471,354 | 1D FEDEF + 255 BPS | 1/3/2022 | 532,448 | 61,094 | |||||||||||
$ | 3,136,420 | $ | 4,069,372 | $ | 932,952 |
Swap Counterparty | Reference Obligation | Notional Amount | Floating Rate/Fixed Amount Paid by Fund* | Termination Date | Value | Unrealized Depreciation | |||||||||||
Morgan Stanley | Guangdong Haid Group Co., Ltd. | $ | 412,457 | 1D FEDEF + 250 BPS | 2/11/2021 | $ | 401,086 | $ | (11,371 | ) | |||||||
Morgan Stanley | Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. | 170,630 | 1D FEDEF + 250 BPS | 1/3/2022 | 157,212 | (13,418 | ) | ||||||||||
Morgan Stanley | Zhongji Innolight Co., Ltd. | 195,551 | 1D FEDEF + 250 BPS | 2/11/2021 | 162,368 | (33,183 | ) | ||||||||||
Morgan Stanley | Zoomlion Heavy Industry Science & Tech, Ltd. | 497,513 | 1D FEDEF + 255 BPS | 1/3/2022 | 465,413 | (32,100 | ) | ||||||||||
$ | 1,276,151 | $ | 1,186,079 | $ | (90,072 | ) |
(a) | For long positions in the total return swap, the Fund receives payments based on any positive return of the Reference Obligation less the rate paid by the Fund. The Fund makes payments on any negative return of such Reference Obligations plus the rate paid by the Fund. For the short positions in the total return swap, the Fund makes payments based on any positive return of the Reference Obligation less the rate received by the Fund. The Fund receives payments on any negative return of such Reference Obligations plus the rate received by the Fund. |
* | Payments made when swap contract closes. |
Investment Abbreviations:
1D FEDEF - Federal Funds Effective Rate (Daily)
For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets.
See Notes to Financial Statements.
137 | October 31, 2020
Clough China Fund
Statement of Assets and Liabilities | October 31, 2020 |
ASSETS | ||||
Investments, at value | $ | 37,607,664 | ||
Cash | 11,861 | |||
Foreign currency, at value (Cost $737,067) | 736,846 | |||
Unrealized appreciation on total return swap contracts | 932,952 | |||
Receivable for investments sold | 278,213 | |||
Receivable for shares sold | 9,459 | |||
Receivable due from broker for total return swap contracts | 31,153 | |||
Cash collateral pledged for total return swap contracts (Note 3) | 1,028,977 | |||
Dividends receivable | 25,237 | |||
Prepaid expenses and other assets | 10,447 | |||
Total Assets | 40,672,809 | |||
LIABILITIES | ||||
Payable for investments purchased | 11,704 | |||
Unrealized depreciation on total return swap contracts | 90,072 | |||
Investment advisory fees payable | 26,168 | |||
Administration and transfer agency fees payable | 27,742 | |||
Distribution and services fees payable | 3,623 | |||
Trustees' fees and expenses payable | 548 | |||
Professional fees payable | 26,236 | |||
Accrued expenses and other liabilities | 35,848 | |||
Total Liabilities | 221,941 | |||
NET ASSETS | $ | 40,450,868 | ||
NET ASSETS CONSIST OF | ||||
Paid-in capital | $ | 26,878,752 | ||
Total distributable earnings | 13,572,116 | |||
NET ASSETS | $ | 40,450,868 | ||
INVESTMENTS, AT COST | $ | 25,463,357 | ||
PRICING OF SHARES | ||||
Investor Class: | ||||
Net Asset Value, offering and redemption price per share | $ | 25.09 | ||
Net Assets | $ | 10,626,033 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 423,569 | |||
Class A: | ||||
Net Asset Value, offering and redemption price per share | $ | 25.07 | ||
Net Assets | $ | 2,044,123 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 81,524 | |||
Maximum offering price per share ((NAV/0.9450), based on maximum sales charge of 5.50% of the offering price) | $ | 26.53 | ||
Class C: | ||||
Net Asset Value, offering and redemption price per share(a) | $ | 23.05 | ||
Net Assets | $ | 1,112,741 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 48,266 | |||
Class I: | ||||
Net Asset Value, offering and redemption price per share | $ | 25.98 | ||
Net Assets | $ | 26,667,971 | ||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 1,026,542 |
(a) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. For a description of a possible sales charge, please see the Fund's Prospectus. |
See Notes to Financial Statements.
138 | October 31, 2020
Clough China Fund
Statement of Operations | For the Year Ended October 31, 2020 |
INVESTMENT INCOME | ||||
Dividends | $ | 441,641 | ||
Foreign taxes withheld on dividends | (20,636 | ) | ||
Total Investment Income | 421,005 | |||
EXPENSES | ||||
Investment advisory fees | 466,540 | |||
Administrative fees | 79,057 | |||
Transfer agency fees | 22,135 | |||
Distribution and service fees | ||||
Investor Class | 24,680 | |||
Class A | 3,737 | |||
Class C | 15,497 | |||
Professional fees | 30,352 | |||
Reports to shareholders and printing fees | 4,987 | |||
State registration fees | 55,181 | |||
Insurance fees | 549 | |||
Custody fees | 28,450 | |||
Trustees' fees and expenses | 2,080 | |||
Miscellaneous expenses | 16,298 | |||
Total Expenses | 749,543 | |||
Less fees waived/reimbursed by investment advisor (Note 8) | ||||
Investor Class | (28,455 | ) | ||
Class A | (3,601 | ) | ||
Class C | (4,818 | ) | ||
Class I | (73,774 | ) | ||
Net Expenses | 638,895 | |||
Net Investment Loss | (217,890 | ) | ||
Net realized gain on investments | 587,744 | |||
Net realized gain on total return swap contracts | 969,878 | |||
Net realized gain on foreign currency transactions | 8,109 | |||
Net Realized Gain | 1,565,731 | |||
Net change in unrealized appreciation on investments | 8,209,018 | |||
Net change in unrealized appreciation on total return swap contracts | 510,137 | |||
Net change in unrealized appreciation on translation of assets and liabilities denominated in foreign currencies | 517 | |||
Net Change in Unrealized Appreciation | 8,719,672 | |||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS | 10,285,403 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 10,067,513 |
See Notes to Financial Statements.
139 | October 31, 2020
Clough China Fund
Statements of Changes in Net Assets
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | |||||||
OPERATIONS | ||||||||
Net investment income/(loss) | $ | (217,890 | ) | $ | 278,785 | |||
Net realized gain | 1,565,731 | 3,563,330 | ||||||
Net change in unrealized appreciation/(depreciation) | 8,719,672 | (1,382,314 | ) | |||||
Net Increase in Net Assets Resulting from Operations | 10,067,513 | 2,459,801 | ||||||
TOTAL DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class | (1,009,421 | ) | (924,319 | ) | ||||
Class A | (138,883 | ) | (563 | ) | ||||
Class C | (187,446 | ) | (340,281 | ) | ||||
Class I | (2,056,110 | ) | (1,650,937 | ) | ||||
Net Decrease in Net Assets from Distributions | (3,391,860 | ) | (2,916,100 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class | 566,840 | 419,226 | ||||||
Class A | 660,972 | 1,592,398 | ||||||
Class C | 41,193 | 91,411 | ||||||
Class I | 960,060 | 611,542 | ||||||
Dividends reinvested | ||||||||
Investor Class | 566,209 | 545,342 | ||||||
Class A | 74,412 | 563 | ||||||
Class C | 107,944 | 184,852 | ||||||
Class I | 1,967,974 | 1,573,403 | ||||||
Shares redeemed, net of redemption fees | ||||||||
Investor Class | (2,835,340 | ) | (2,071,339 | ) | ||||
Class A | (354,229 | ) | (115,254 | ) | ||||
Class C | (1,207,676 | ) | (2,553,148 | ) | ||||
Class I | (2,972,486 | ) | (1,409,415 | ) | ||||
Net Decrease in Net Assets Derived from Beneficial Interest Transactions | (2,424,127 | ) | (1,130,419 | ) | ||||
Net increase/(decrease) in net assets | 4,251,526 | (1,586,718 | ) | |||||
NET ASSETS | ||||||||
Beginning of year | 36,199,342 | 37,786,060 | ||||||
End of year | $ | 40,450,868 | $ | 36,199,342 |
See Notes to Financial Statements.
140 | October 31, 2020
Clough China Fund – Investor Class
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 20.96 | $ | 21.36 | $ | 27.22 | $ | 21.07 | $ | 21.74 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income/(loss)(b) | (0.16 | ) | 0.13 | (0.08 | ) | 0.08 | 0.04 | |||||||||||||
Net realized and unrealized gain/(loss) | 6.30 | 1.16 | (5.71 | ) | 6.09 | (0.40 | ) | |||||||||||||
Total from investment operations | 6.14 | 1.29 | (5.79 | ) | 6.17 | (0.36 | ) | |||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.38 | ) | – | (0.07 | ) | (0.02 | ) | (0.31 | ) | |||||||||||
From net realized gains | (1.63 | ) | (1.69 | ) | – | – | – | |||||||||||||
Total distributions | (2.01 | ) | (1.69 | ) | (0.07 | ) | (0.02 | ) | (0.31 | ) | ||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (c) | – | 0.00 | (c) | – | 0.00 | (c) | ||||||||||||
Net increase/(decrease) in net asset value | 4.13 | (0.40 | ) | (5.86 | ) | 6.15 | (0.67 | ) | ||||||||||||
Net asset value, end of year | $ | 25.09 | $ | 20.96 | $ | 21.36 | $ | 27.22 | $ | 21.07 | ||||||||||
TOTAL RETURN(d) | 31.24 | % | 6.61 | % | (21.32 | )% | 29.32 | % | (1.61 | )% | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 10,626 | $ | 10,633 | $ | 11,879 | $ | 17,523 | $ | 18,358 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 2.16 | % | 2.23 | % | 2.10 | % | 2.05 | % | 2.04 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.87 | %(e) | 1.95 | % | 1.95 | % | 1.95 | % | 1.95 | % | ||||||||||
Ratio of net investment income/(loss) to average net assets | (0.74 | )% | 0.61 | % | (0.30 | )% | 0.34 | % | 0.18 | % | ||||||||||
Portfolio turnover rate(f) | 120 | % | 344 | % | 131 | % | 71 | % | 126 | % |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Calculated using the average shares method. |
(c) | Less than $0.005 or ($0.005) per share. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(e) | Effective August 18, 2020, the net expense limitation agreement changed from 1.95% to 1.60%. Refer to Note 8. |
(f) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
141 | October 31, 2020
Clough China Fund – Class A
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Period June 12, 2018 (Commencement of Operations) to October 31, 2018 | ||||||||||
Net asset value, beginning of period | $ | 20.95 | $ | 21.36 | $ | 29.95 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income/(loss)(a) | (0.17 | ) | 0.56 | 0.14 | ||||||||
Net realized and unrealized gain/(loss) | 6.30 | 0.72 | (8.73 | ) | ||||||||
Total from investment operations | 6.13 | 1.28 | (8.59 | ) | ||||||||
DISTRIBUTIONS: | ||||||||||||
From net investment income | (0.38 | ) | – | – | ||||||||
From net realized gains | (1.63 | ) | (1.69 | ) | – | |||||||
Total distributions | (2.01 | ) | (1.69 | ) | – | |||||||
Net increase/(decrease) in net asset value | 4.12 | (0.41 | ) | (8.59 | ) | |||||||
Net asset value, end of year | $ | 25.07 | $ | 20.95 | $ | 21.36 | ||||||
TOTAL RETURN(b) | 31.20 | % | 6.56 | % | (28.68 | )% | ||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||
Net assets, end of year (000s) | $ | 2,044 | $ | 1,404 | $ | 7 | ||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 2.09 | % | 2.22 | % | 2.22 | %(c) | ||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.85 | %(d) | 1.95 | % | 1.95 | %(c) | ||||||
Ratio of net investment income/(loss) to average net assets | (0.77 | )% | 2.68 | % | 1.47 | %(c) | ||||||
Portfolio turnover rate(e) | 120 | % | 344 | % | 131 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(c) | Annualized. |
(d) | Effective August 18, 2020, the net expense limitation agreement changed from 1.95% to 1.60%. Refer to Note 8. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
142 | October 31, 2020
Clough China Fund – Class C
Financial Highlights |
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 19.52 | $ | 20.14 | $ | 25.80 | $ | 20.10 | $ | 20.72 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment loss(a) | (0.29) | (0.14) | (0.28) | (0.12 | )(b) | (0.10 | ) | |||||||||||||
Net realized and unrealized gain/(loss) | 5.80 | 1.21 | (5.38 | ) | 5.82 | (0.39 | ) | |||||||||||||
Total from investment operations | 5.51 | 1.07 | (5.66 | ) | 5.70 | (0.49 | ) | |||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.35 | ) | – | – | – | (0.13 | ) | |||||||||||||
From net realized gains | (1.63 | ) | (1.69 | ) | – | – | – | |||||||||||||
Total distributions | (1.98 | ) | (1.69 | ) | – | – | (0.13 | ) | ||||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | 0.00 | (c) | – | – | 0.00 | (c) | 0.00 | (c) | ||||||||||||
Net increase/(decrease) in net asset value | 3.53 | (0.62 | ) | (5.66 | ) | 5.70 | (0.62 | ) | ||||||||||||
Net asset value, end of year | $ | 23.05 | $ | 19.52 | $ | 20.14 | $ | 25.80 | $ | 20.10 | ||||||||||
TOTAL RETURN(d) | 30.22 | % | 5.85 | % | (21.94 | )% | 28.36 | % | (2.34 | )% | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 1,113 | $ | 1,968 | $ | 4,245 | $ | 6,610 | $ | 8,352 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 2.96 | % | 2.98 | % | 2.85 | % | 2.85 | % | 2.83 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 2.65 | %(e) | 2.70 | % | 2.70 | % | 2.70 | % | 2.70 | % | ||||||||||
Ratio of net investment loss to average net assets | (1.49 | )% | (0.69 | )% | (1.07 | )% | (0.54 | )% | (0.52 | )% | ||||||||||
Portfolio turnover rate(f) | 120 | % | 344 | % | 131 | % | 71 | % | 126 | % |
(a) | Calculated using the average shares method. |
(b) | The per share amount does not correspond to activity reflected in the Statement of Operations due to class specific expenses during the period. |
(c) | Less than $0.005 or ($0.005) per share. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(e) | Effective August 18, 2020, the net expense limitation agreement changed from 2.70% to 2.35%. Refer to Note 8. |
(f) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
143 | October 31, 2020
Clough China Fund – Class I
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018 | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 21.59 | $ | 21.90 | $ | 27.92 | $ | 21.60 | $ | 22.28 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income/(loss)(a) | (0.10 | ) | 0.20 | (0.05 | ) | 0.15 | 0.09 | |||||||||||||
Net realized and unrealized gain/(loss) | 6.51 | 1.18 | (5.83 | ) | 6.23 | (0.39 | ) | |||||||||||||
Total from investment operations | 6.41 | 1.38 | (5.88 | ) | 6.38 | (0.30 | ) | |||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.39 | ) | – | (0.14 | ) | (0.06 | ) | (0.38 | ) | |||||||||||
From net realized gains | (1.63 | ) | (1.69 | ) | – | – | – | |||||||||||||
Total distributions | (2.02 | ) | (1.69 | ) | (0.14 | ) | (0.06 | ) | (0.38 | ) | ||||||||||
REDEMPTION FEES ADDED TO PAID-IN CAPITAL (NOTE 6) | – | – | – | 0.00 | (b) | 0.00 | (b) | |||||||||||||
Net increase/(decrease) in net asset value | 4.39 | (0.31 | ) | (6.02 | ) | 6.32 | (0.68 | ) | ||||||||||||
Net asset value, end of year | $ | 25.98 | $ | 21.59 | $ | 21.90 | $ | 27.92 | $ | 21.60 | ||||||||||
TOTAL RETURN(c) | 31.60 | % | 6.87 | % | (21.17 | )% | 29.64 | % | (1.31 | )% | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 26,668 | $ | 22,195 | $ | 21,655 | $ | 35,191 | $ | 33,605 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.93 | % | 1.99 | % | 1.86 | % | 1.83 | % | 1.82 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.62 | %(d) | 1.70 | % | 1.70 | % | 1.70 | % | 1.70 | % | ||||||||||
Ratio of net investment income/(loss) to average net assets | (0.46 | )% | 0.93 | % | (0.17 | )% | 0.61 | % | 0.46 | % | ||||||||||
Portfolio turnover rate(e) | 120 | % | 344 | % | 131 | % | 71 | % | 126 | % |
(a) | Calculated using the average shares method. |
(b) | Less than $0.005 or ($0.005) per share. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(d) | Effective August 18, 2020, the net expense limitation agreement changed from 1.70% to 1.35%. Refer to Note 8. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
144 | October 31, 2020
RiverFront Global Allocation Series
Management Commentary | October 31, 2020 (Unaudited) |
Year in Review (November 2019 – October 2020):
The first quarter of 2020 presented one of the most volatile market regimes that we have ever encountered as portfolio managers. In mid-March, implied volatility touched a closing all-time high, even briefly surpassing the implied volatility experienced during the financial crisis in 2008. Equity markets around the world faltered, including markets in the United States as the S&P 500 was down over 30% from peak to trough. High yield spreads blew out and the travel, energy and hospitality segments were particularly hard hit. There was a downward shock in the demand for oil, which was paired with an ill-timed supply-side price war between Saudi Arabia, Russia and other oil producing states. These dynamics sent oil prices and energy company valuations into a downward spiral. On April 20, the West Texas Intermediate May futures contract plunged into negative territory as storage capacity was scarce and speculators were forced to exit long positions. At the heart of these economic and market shocks has been the COVID-19 pandemic. While the world has grappled with previous outbreaks of contagious diseases, such as SARS, H1N1, and MERS, COVID-19 has proven uniquely difficult to address given its relative ease of transmissibility and high mortality rate. Given these features of COVID-19, nations around the world have scrambled to increase production of personal protective equipment and hospital capacity while also enacting other containment measures.
While the first quarter of 2020 was plagued with the COVID-19 pandemic and the resulting market fallout, the period between April and October of 2020 provided one of the quickest market recoveries in stock market history. Containment measures, such as social distancing, wearing masks and forced closure of certain businesses, have helped reduce the impact of the outbreak but have not eradicated the virus. Preventive measures seem to have had relative success in countries like Korea and Taiwan, but the virus continues to ravage certain other countries like Brazil and new waves of the virus have caused some Western European nations to “shut-down” again. While the COVID-19 crisis is not over, the markets have generally seen through any doomsday scenario and are looking ahead to earnings recoveries in the second half of 2020 and beyond. Political uncertainty around a potential “Blue Wave” also had markets worried towards the end of October, but those fears seem to have abated. Moreover, swift Fed action to buoy markets and ensure liquidity, coupled with unprecedented fiscal stimulus out of Washington, supported valuations considerably. The market has also recognized that certain companies and sectors not only are relatively better positioned to weather the COVID-19 storm but are actually benefiting from it.
When examining only broad market indices such as the S&P 500, the recovery has seemed very “V” shaped. However, there are large sector and individual stock performance discrepancies that would characterize the market recovery as more “K” shaped once you parse the data. For instance, through October 31, 2020, broad US Equities were up 11% YTD (after being down over 30% YTD in March). However, there was large sector performance dispersion. The technology sector was up 33% and consumer discretionary was up -23% over the same period. Underperformers include the energy
sector which was down 47%, financials were down 16%, and real estate was also down 5%. This large performance discrepancy has also driven broad, capitalization-weighted indices to be very technology heavy and more skewed towards mega-cap companies. For instance, the technology sector now makes up 36.5% of the S&P 500. Apple is now 6.7% of the index with Microsoft and Amazon at 5.7% and 4.9% respectively.
High yield spreads continue to compress, going from 8.8% at the end of March to 5.3% at the end of October. These are still elevated levels as high yield spreads were only 3.6% at the end of 2019. Oil prices have recovered somewhat since Q1 (from $14.10 to $35.64) but are still considerably lower than the levels of 2019 (i.e. above $50 a barrel). Developed International Equities have underperformed US Equities by over 11% since the end of March with Emerging Market Equities outperforming US Equities by about 4%.
When examining the full trailing twelve months, the S&P 500 was up 9%. Emerging Market Equities were up 8% and Developed International Equities trailed significantly (down about 7%). Broad Core Fixed Income was up 6% and High Yield was up 2%.
Outlook:
Going forward, we expect stocks to rise over the next 12-18 months, recognizing that short-term risk remains high with continued COVID-19 concerns. From a selection standpoint, we believe asset classes and stocks that can deliver growth should continue to be valued at a premium to their peers.
There are several potential catalysts on the near-term horizon including another stimulus bill, further advances in COVID-19 treatment and Q4 earnings season. From a macro standpoint, we believe that low interest rates and accommodative policy will continue to provide support for stocks globally. Thus, we believe that domestic and international equities provide relatively attractive long-term return potential relative to fixed income alternatives.
International equities have long been awaiting a positive catalyst to help drive relative performance versus US stocks. While fears of additional shut-down protocols increase as case counts mount in both the US and across Europe, economic fallout from the first wave of the virus have sparked historic levels of fiscal and monetary stimulus from US, European and Asian policy makers, and we believe there will be additional stimulus in the future. Monetary supply is now growing in most major economies of the world, a positive for stocks in our opinion. On the currency front, we remain of the view that the US dollar may have reached a structural peak.
TTM Attribution
RiverFront Asset Allocation Moderate
The top themes that contributed to and detracted from performance over the last twelve months are listed below:
Contributors:
● | Overweight allocation to international equities |
● | Selection within international equities |
145 | October 31, 2020
RiverFront Global Allocation Series
Management Commentary | October 31, 2020 (Unaudited) |
Detractors:
● | Selection within US equities |
● | Selection within core fixed income |
RiverFront Asset Allocation Growth and Income
The top themes that contributed to and detracted from performance over the last twelve months are listed below:
Contributors:
● | Overweight allocation to domestic equities |
● | Selection within international equities |
● | Underweight allocation to core fixed income |
Detractors:
● | Selection within US equities |
● | Selection within core fixed income |
● | Overweight allocation to high yield bonds |
RiverFront Asset Allocation Aggressive
The top themes that contributed and detracted from performance in the quarter are listed below:
Contributors:
● | Overweight allocation to emerging market equities |
● | Selection within developed international equities |
● | Allocation to cash |
Detractors:
● | Selection within US equities |
● | Selection within emerging market equities |
● | Overweight allocation to developed international equities |
Scott Hays, CFA
Senior Portfolio Manager
Past performance is no guarantee of future results. Dividends are not guaranteed and are subject to change or elimination. Investments in international and emerging markets securities include exposure to risks such as currency fluctuations, foreign taxes and regulations, and the potential for illiquid markets and political instability.
The views of the author and information discussed in this commentary are as of the date of publication, are subject to change, and may not reflect the writer's current views. The views expressed are those of the author only, and represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the fund(s) or any securities or any sectors mentioned in this letter. The subject matter contained in this letter has been derived from several sources believed to be reliable and accurate at the time of compilation. Neither ALPS Advisors, Inc., RiverFront Investment Group, LLC, nor the Funds accepts any liability for losses either direct or consequential caused by the use of this information.
The MSCI EAFE Index is recognized as the pre-eminent benchmark in the United States to measure international equity performance. It comprises the MSCI country indices that represent developed markets outside of North America: Europe, Australasia and the Far East.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.
The Barclays U.S. Short Treasury Index is composed of bonds of investment grade with a maturity between one and three years.
Indices do not reflect deductions for fees, expenses, or taxes.
An investor may not invest directly in an index.
Diversification cannot guarantee gain or prevent losses.
ALPS Portfolio Solutions Distributor, Inc., ALPS Distributors, Inc. and ALPS Advisors Inc. are affiliated.
146 | October 31, 2020
RiverFront Asset Allocation Aggressive
Performance Update | October 31, 2020 (Unaudited) |
Performance of $10,000 Initial Investment (as of October 31, 2020)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception. Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns (as of October 31, 2020)
1 Year | 3 Years | 5 Years | 10 Years | Since Inception^ | Total Expense Ratio | What You Pay* | |
Investor# (NAV) | -0.33% | -0.75% | 3.44% | 4.96% | 7.29% | 1.16% | 1.16% |
Class A (NAV) | -0.33% | -0.75% | 3.44% | 4.97% | 7.28% | 1.16% | 1.16% |
Class A (MOP) | -5.83% | -2.60% | 2.28% | 4.38% | 6.77% | ||
Class C (NAV) | -1.04% | -1.46% | 2.68% | 4.19% | 6.50% | 1.91% | 1.91% |
Class C (CDSC) | -2.01% | -1.46% | 2.68% | 4.19% | 6.50% | ||
Class I (NAV) | -0.02% | -0.47% | 3.71% | 5.23% | 7.55% | 0.91% | 0.91% |
Investor II (NAV) | -0.33% | -0.77% | 3.43% | 4.96% | 7.27% | 1.16% | 1.16% |
Class L1 (NAV) | -0.11% | -0.50% | 3.70% | 5.23% | 7.55% | 0.91% | 0.91% |
Morningstar Global Markets Index2 | 4.22% | 5.08% | 7.90% | 7.90% | 10.56% | ||
S&P 500® Total Return Index3 | 9.71% | 10.42% | 11.71% | 13.01% | 13.30% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million. Performance less than 1 year is cumulative.
147 | October 31, 2020
RiverFront Asset Allocation Aggressive
Performance Update | October 31, 2020 (Unaudited) |
Performance shown for Class A shares prior to June 12, 2018 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class A shares.
The Investor Class, Class A, Class C, I and L shares performance shown for periods prior to September 27, 2010 reflects the performance of the Baird Funds, Inc. – RiverFront Long-Term Growth Fund’s Institutional Class shares (as result of the reorganization of the Baird Funds, Inc. – RiverFront Long-Term Growth Fund into the Fund).
The Investor II Class performance shown for periods prior to September 27, 2010 reflects the performance of the Baird Funds, Inc. – RiverFront Long-Term Growth Fund’s Investor Class shares (as result of the reorganization of the Baird Funds, Inc. – RiverFront Long-Term Growth Fund into the Fund).
1 | Prior to close of business on September 24, 2010, Class L was known as Institutional Class of the Baird Funds, Inc. - RiverFront Long-Term Growth Fund. |
2 | The Morningstar Global Market Index measures the performance of performance of the stocks located in the developed and emerging countries across the world. Stocks in the index are weighted by their float capital, which removes corporate cross ownership, government holdings and other locked-in shares. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
3 | S&P 500® Total Return Index is the Standard & Poor's composite index of 500 stocks, a widely recognized, unmanaged index of common stock prices. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
^ | Fund Inception date of October 28, 2008 for Investor Class II and Class L; Fund Inception date September 27, 2010 for Investor Class and Classes C and I; Fund Inception date June 12, 2018 for Class A. |
* | What You Pay reflects Acquired Fund Fees and Expenses of 0.66%. Please see the prospectus dated February 28, 2020 for additional information. |
# | Prior to December 1, 2017, Investor Class was known as Class A. |
Prior to February 28, 2018, the RiverFront Asset Allocation Aggressive was known as the RiverFront Global Growth Fund.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Top Ten Holdings (as a % of Net Assets) †
RiverFront Dynamic US Dividend Advantage ETF | 30.77% |
RiverFront Dynamic US Flex-Cap ETF | 30.23% |
First Trust RiverFront Dynamic Developed International ETF | 14.78% |
First Trust RiverFront Dynamic Emerging Markets ETF | 11.99% |
First Trust RiverFront Dynamic Europe ETF | 6.32% |
First Trust RiverFront Dynamic Asia Pacific ETF | 3.41% |
Top Ten Holdings | 97.50% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents indicative values only. Excludes cash & cash equivalents. |
Portfolio Composition (as a % of Net Assets)
148 | October 31, 2020
RiverFront Asset Allocation Growth & Income
Performance Update | October 31, 2020 (Unaudited) |
Performance of $10,000 Initial Investment (as of October 31, 2020)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception. Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns (as of October 31, 2020)
1 Year | 3 Years | 5 Years | 10 Years | Since Inception^ | Total Expense Ratio | What You Pay* | |
Investor# (NAV) | 0.27% | 0.89% | 4.35% | 5.49% | 5.98% | 1.10% | 1.10% |
Class A (NAV) | 0.28% | 0.89% | 4.35% | 5.49% | 5.98% | 1.10% | 1.10% |
Class A (MOP) | -5.25% | -0.99% | 3.17% | 4.90% | 5.40% | ||
Class C (NAV) | -0.44% | 0.15% | 3.57% | 4.70% | 5.18% | 1.85% | 1.85% |
Class C (CDSC) | -1.42% | 0.15% | 3.57% | 4.70% | 5.18% | ||
Class I (NAV) | 0.46% | 1.12% | 4.60% | 5.75% | 6.23% | 0.85% | 0.85% |
Morningstar Global Markets Index1 | 4.22% | 5.08% | 7.90% | 7.90% | 8.45% | ||
Bloomberg Barclays US Aggregate Bond Index2 | 6.19% | 5.06% | 4.08% | 3.55% | 3.66% | ||
70% Morningstar Global Markets Index / 30% Bloomberg Barclays US Aggregate Bond1,2 | 5.38% | 5.42% | 6.99% | 6.81% | 7.23% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million.
Performance shown for Class A shares prior to June 12, 2018 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class A shares.
149 | October 31, 2020
RiverFront Asset Allocation Growth & Income
Performance Update | October 31, 2020 (Unaudited) |
1 | The Morningstar Global Market Index measures the performance of performance of the stocks located in the developed and emerging countries across the world. Stocks in the index are weighted by their float capital, which removes corporate cross ownership, government holdings and other locked-in shares. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
2 | The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. The index is not actively managed and does not reflect any deductions for fees, expenses or taxes. An investor may not invest directly in an index. |
^ | Fund Inception date of August 2, 2010 for Investor Class and Classes C and I; Fund Inception date of June 12, 2018 for Class A. |
* | What You Pay reflects Acquired Fund Fees and Expenses of 0.60%. Please see the prospectus dated February 28, 2020 for additional information. |
# | Prior to December 1, 2017, Investor Class was known as Class A. |
Prior to February 28, 2018, the RiverFront Asset Allocation Growth & Income was known as the RiverFront Dynamic Equity Income Fund.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Top Ten Holdings (as a % of Net Assets) †
RiverFront Dynamic US Dividend Advantage ETF | 33.73% |
RiverFront Dynamic Core Income ETF | 22.41% |
First Trust RiverFront Dynamic Developed International ETF | 15.46% |
RiverFront Dynamic US Flex-Cap ETF | 12.77% |
First Trust RiverFront Dynamic Emerging Markets ETF | 8.51% |
Riverfront Strategic Income Fund | 2.95% |
RiverFront Dynamic Unconstrained Income ETF | 1.88% |
Top Ten Holdings | 97.71% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents indicative values only. Excludes cash & cash equivalents. |
Portfolio Composition (as a % of Net Assets)
150 | October 31, 2020
RiverFront Asset Allocation Moderate
Performance Update | October 31, 2020 (Unaudited) |
Performance of $10,000 Initial Investment (as of October 31, 2020)
Comparison of change in value of a $10,000 investment
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception. Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Average Annual Total Returns (as of October 31, 2020)
1 Year | 3 Years | 5 Years | 10 Years | Since Inception^ | Total Expense Ratio | What You Pay* | |
Investor# (NAV) | 1.95% | 2.80% | 4.50% | 5.17% | 5.42% | 1.03% | 1.03% |
Class A (NAV) | 1.96% | 2.80% | 4.50% | 5.17% | 5.42% | 1.03% | 1.03% |
Class A (MOP) | -3.66% | 0.87% | 3.32% | 4.58% | 4.84% | ||
Class C (NAV) | 1.21% | 2.02% | 3.73% | 4.38% | 4.63% | 1.78% | 1.78% |
Class C (CDSC) | 0.21% | 2.02% | 3.73% | 4.38% | 4.63% | ||
Class I (NAV) | 2.19% | 3.05% | 4.78% | 5.43% | 5.68% | 0.78% | 0.78% |
S&P 500® Total Return Index1 | 9.71% | 10.42% | 11.71% | 13.01% | 13.29% | ||
Bloomberg Barclays US Aggregate Bond Index2 | 6.19% | 5.06% | 4.08% | 3.55% | 3.66% | ||
Morningstar Developed Markets ex-North America Index3 | -5.92% | -1.03% | 3.15% | 4.14% | 4.77% | ||
10% Mstar Developed ex-NA / 40% S&P 500 /50% Bbg Barclay US Agg1,2,3 | 6.97% | 6.97% | 7.28% | 7.58% | 7.82% |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data, please call 1-866-759-5679.
Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. If you invest $1 million or more, either as a lump sum or through the Fund’s accumulation or letter of intent programs, you can purchase Class A shares without an initial sales charge (load). A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months after a purchase, and on Class A shares redeemed within the first 18 months after a purchase in excess of $1 million.
151 | October 31, 2020
RiverFront Asset Allocation Moderate
Performance Update | October 31, 2020 (Unaudited) |
Performance shown for Class A shares prior to June 12, 2018 reflects the historical performance of the Fund’s Investor shares, calculated using the fees and expenses of Class A shares.
1 | S&P 500® Total Return Index is the Standard & Poor's composite index of 500 stocks, a widely recognized, unmanaged index of common stock prices. The index is not actively managed and does not reflect any deduction for fees, expenses or taxes. An investor may not invest directly in an index. |
2 | The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. The index is not actively managed and does not reflect any deductions for fees, expenses or taxes. An investor may not invest directly in an index. |
3 | The Morningstar Developed Markets ex-North America Index measures the performance of companies in developed markets ex-North America. It covers approximately 97% of the full market capitalization in the Developed Markets ex-North America. The index is not actively managed and does not reflect any deductions for fees, expenses or taxes. An investor may not invest directly in an index. |
^ | Fund Inception date of August 2, 2010 for Investor Class and Classes C and I; Fund Inception date of June 12, 2018 for Class A. |
* | What You Pay reflects Acquired Fund Fees and Expenses of 0.53%. Please see the prospectus dated February 28, 2020 for additional information. |
# | Prior to December 1, 2017, Investor Class was known as Class A. |
Prior to February 28, 2018, the RiverFront Asset Allocation Moderate was known as the RiverFront Moderate Growth & Income Fund.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
This Fund is not suitable for all investors and is subject to investment risks, including possible loss of the principal amount invested.
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular company. The composition of the Fund's top holdings is subject to change. Performance figures are historical and reflect the change in share price, reinvested distributions, changes in net asset value, sales charges and capital gains distributions, if any.
Not FDIC Insured – No Bank Guarantee – May Lose Value
Top Ten Holdings (as a % of Net Assets) †
RiverFront Dynamic Core Income ETF | 41.75% |
RiverFront Dynamic US Dividend Advantage ETF | 34.61% |
RiverFront Dynamic US Flex-Cap ETF | 11.00% |
First Trust RiverFront Dynamic Developed International ETF | 5.32% |
Riverfront Strategic Income Fund | 2.97% |
RiverFront Dynamic Unconstrained Income ETF | 1.83% |
Top Ten Holdings | 97.48% |
† | Holdings are subject to change, and may not reflect the current or future position of the portfolio. Table presents indicative values only. Excludes cash & cash equivalents. |
Portfolio Composition (as a % of Net Assets)
152 | October 31, 2020
RiverFront Asset Allocation Aggressive
Statement of Investments | October 31, 2020 |
Shares | Value (Note 2) | |||||||
EXCHANGE TRADED FUNDS (97.52%) | ||||||||
Equity (97.52%) | ||||||||
First Trust RiverFront Dynamic Asia Pacific ETF(a) | 15,772 | $ | 783,725 | |||||
First Trust RiverFront Dynamic Developed International ETF(a) | 62,181 | 3,394,461 | ||||||
First Trust RiverFront Dynamic Emerging Markets ETF(a) | 45,089 | 2,753,585 | ||||||
First Trust RiverFront Dynamic Europe ETF(a) | 26,092 | 1,451,594 | ||||||
RiverFront Dynamic US Dividend Advantage ETF(a) | 210,946 | 7,066,248 | ||||||
RiverFront Dynamic US Flex-Cap ETF(a) | 203,304 | 6,940,799 | ||||||
22,390,412 | ||||||||
TOTAL EXCHANGE TRADED FUNDS | ||||||||
(Cost $21,928,642) | 22,390,412 |
7-Day Yield | Shares | Value (Note 2) | ||||||||||
SHORT-TERM INVESTMENTS (1.10%) | ||||||||||||
Money Market Fund (1.10%) | ||||||||||||
State Street Institutional Treasury Plus Money Market Fund | 0.020 | % | 253,098 | 253,098 | ||||||||
TOTAL MONEY MARKET FUND | 253,098 | |||||||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||||||
(Cost $253,098) | 253,098 | |||||||||||
TOTAL INVESTMENTS (98.62%) | ||||||||||||
(Cost $22,181,740) | $ | 22,643,510 | ||||||||||
Other Assets In Excess Of Liabilities (1.38%) | 317,570 | |||||||||||
NET ASSETS (100.00%) | $ | 22,961,080 |
(a) | Affiliated Company. See Note 7 in Notes to Financial Statements. |
For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets.
See Notes to Financial Statements.
153 | October 31, 2020
RiverFront Asset Allocation Growth & Income
Statement of Investments | October 31, 2020 |
Shares | Value (Note 2) | |||||||
EXCHANGE TRADED FUNDS (97.72%) | ||||||||
Debt (27.24%) | ||||||||
RiverFront Dynamic Core Income ETF(a) | 512,556 | $ | 13,323,893 | |||||
RiverFront Dynamic Unconstrained Income ETF(a) | 44,608 | 1,120,785 | ||||||
Riverfront Strategic Income Fund(a) | 71,427 | 1,752,818 | ||||||
16,197,496 | ||||||||
Equity (70.48%) | ||||||||
First Trust RiverFront Dynamic Developed International ETF(a) | 168,369 | 9,191,264 | ||||||
First Trust RiverFront Dynamic Emerging Markets ETF(a) | 82,895 | 5,062,398 | ||||||
RiverFront Dynamic US Dividend Advantage ETF(a) | 598,807 | 20,058,777 | ||||||
RiverFront Dynamic US Flex-Cap ETF(a) | 222,454 | 7,594,579 | ||||||
41,907,018 | ||||||||
TOTAL EXCHANGE TRADED FUNDS | ||||||||
(Cost $54,855,503) | 58,104,514 |
7-Day Yield | Shares | Value (Note 2) | ||||||||||
SHORT-TERM INVESTMENTS (2.41%) | ||||||||||||
Money Market Fund (2.41%) | ||||||||||||
State Street Institutional Treasury Plus Money Market Fund | 0.020 | % | 1,433,308 | 1,433,308 | ||||||||
TOTAL MONEY MARKET FUND | 1,433,308 | |||||||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||||||
(Cost $1,433,308) | 1,433,308 | |||||||||||
TOTAL INVESTMENTS (100.13%) | ||||||||||||
(Cost $56,288,811) | $ | 59,537,822 | ||||||||||
Liabilities In Excess Of Other Assets (-0.13%) | (76,597 | ) | ||||||||||
NET ASSETS (100.00%) | $ | 59,461,225 |
(a) | Affiliated Company. See Note 7 in Notes to Financial Statements. |
For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets.
See Notes to Financial Statements.
154 | October 31, 2020
RiverFront Asset Allocation Moderate
Statement of Investments | October 31, 2020 |
Shares | Value (Note 2) | |||||||
EXCHANGE TRADED FUNDS (97.48%) | ||||||||
Debt (46.55%) | ||||||||
RiverFront Dynamic Core Income ETF(a) | 754,052 | $ | 19,601,582 | |||||
RiverFront Dynamic Unconstrained Income ETF(a) | 34,164 | 858,377 | ||||||
Riverfront Strategic Income Fund(a) | 56,837 | 1,394,780 | ||||||
21,854,739 | ||||||||
Equity (50.93%) | ||||||||
First Trust RiverFront Dynamic Developed International ETF(a) | 45,791 | 2,499,730 | ||||||
RiverFront Dynamic US Dividend Advantage ETF(a) | 485,001 | 16,246,515 | ||||||
RiverFront Dynamic US Flex-Cap ETF(a) | 151,255 | 5,163,846 | ||||||
23,910,091 | ||||||||
TOTAL EXCHANGE TRADED FUNDS | ||||||||
(Cost $42,984,897) | 45,764,830 |
7-Day Yield | Shares | Value (Note 2) | ||||||||||
SHORT-TERM INVESTMENTS (2.61%) | ||||||||||||
Money Market Fund (2.61%) | ||||||||||||
State Street Institutional Treasury Plus Money Market Fund | 0.020 | % | 1,223,124 | 1,223,124 | ||||||||
TOTAL MONEY MARKET FUND | 1,223,124 | |||||||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||||||
(Cost $1,223,124) | 1,223,124 | |||||||||||
TOTAL INVESTMENTS (100.09%) | ||||||||||||
(Cost $44,208,021) | $ | 46,987,954 | ||||||||||
Liabilities In Excess Of Other Assets (-0.09%) | (41,763 | ) | ||||||||||
NET ASSETS (100.00%) | $ | 46,946,191 |
(a) | Affiliated Company. See Note 7 in Notes to Financial Statements. |
For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets.
See Notes to Financial Statements.
155 | October 31, 2020
RiverFront Global Allocation Series
Statements of Assets and Liabilities | October 31, 2020 |
RiverFront Asset Allocation Aggressive | RiverFront Asset Allocation Growth & Income | RiverFront Asset Allocation Moderate | ||||||||||
ASSETS | ||||||||||||
Investments, at value | $ | 253,098 | $ | 1,433,308 | $ | 1,223,124 | ||||||
Investments in affiliates, at value | 22,390,412 | 58,104,514 | 45,764,830 | |||||||||
Receivable for investments sold | 347,328 | – | – | |||||||||
Receivable for shares sold | 1,570 | 744 | 282 | |||||||||
Dividends and interest receivable | 8 | 16 | 14 | |||||||||
Total Assets | 22,992,416 | 59,538,582 | 46,988,250 | |||||||||
LIABILITIES | ||||||||||||
Payable for shares redeemed | 17,400 | 36,700 | 4,699 | |||||||||
Unitary administrative fees payable | 10,234 | 25,913 | 20,242 | |||||||||
Distribution and services fees payable | 3,702 | 14,744 | 17,118 | |||||||||
Total Liabilities | 31,336 | 77,357 | 42,059 | |||||||||
NET ASSETS | $ | 22,961,080 | $ | 59,461,225 | $ | 46,946,191 | ||||||
NET ASSETS CONSIST OF | ||||||||||||
Paid-in capital | $ | 25,664,408 | $ | 63,529,188 | $ | 46,036,058 | ||||||
Total distributable earnings | (2,703,328 | ) | (4,067,963 | ) | 910,133 | |||||||
NET ASSETS | $ | 22,961,080 | $ | 59,461,225 | $ | 46,946,191 | ||||||
INVESTMENTS, AT COST | $ | 253,098 | $ | 1,433,308 | $ | 1,223,124 | ||||||
INVESTMENTS IN AFFILIATES, AT COST | $ | 21,928,642 | $ | 54,855,503 | $ | 42,984,897 |
See Notes to Financial Statements.
156 | October 31, 2020
RiverFront Global Allocation Series
Statements of Assets and Liabilities (continued) | October 31, 2020 |
RiverFront Asset Allocation Aggressive | RiverFront Asset Allocation Growth & Income | RiverFront Asset Allocation Moderate | ||||||||||
PRICING OF SHARES | ||||||||||||
Investor Class: | ||||||||||||
Net Asset Value, offering and redemption price per share | $ | 11.31 | $ | 11.84 | $ | 10.50 | ||||||
Net Assets | $ | 1,861,906 | $ | 6,801,791 | $ | 3,882,986 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 164,593 | 574,572 | 369,673 | |||||||||
Class A: | ||||||||||||
Net Asset Value, offering and redemption price per share | $ | 11.22 | $ | 11.83 | $ | 10.49 | ||||||
Net Assets | $ | 988,980 | $ | 4,488,702 | $ | 7,680,051 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 88,116 | 379,543 | 732,032 | |||||||||
Maximum offering price per share ((NAV/0.9450), based on maximum sales charge of 5.50% of the offering price) | $ | 11.87 | $ | 12.52 | $ | 11.10 | ||||||
Class C: | ||||||||||||
Net Asset Value, offering and redemption price per share(a) | $ | 10.57 | $ | 11.45 | $ | 10.34 | ||||||
Net Assets | $ | 3,146,900 | $ | 13,641,702 | $ | 16,352,736 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 297,730 | 1,191,886 | 1,581,409 | |||||||||
Class I: | ||||||||||||
Net Asset Value, offering and redemption price per share | $ | 11.56 | $ | 11.79 | $ | 10.51 | ||||||
Net Assets | $ | 2,945,040 | $ | 34,529,030 | $ | 19,030,418 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 254,817 | 2,927,772 | 1,811,005 | |||||||||
Investor Class II: | ||||||||||||
Net Asset Value, offering and redemption price per share | $ | 11.21 | N/A | N/A | ||||||||
Net Assets | $ | 741,173 | N/A | N/A | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 66,090 | N/A | N/A | |||||||||
Class L: | ||||||||||||
Net Asset Value, offering and redemption price per share | $ | 11.53 | N/A | N/A | ||||||||
Net Assets | $ | 13,277,081 | N/A | N/A | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized) | 1,151,043 | N/A | N/A |
(a) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. For a description of a possible sales charge, please see the Fund's Prospectus. |
See Notes to Financial Statements.
157 | October 31, 2020
RiverFront Global Allocation Series
Statements of Operations | For the Year Ended October 31, 2020 |
RiverFront Asset Allocation Aggressive | RiverFront Asset Allocation Growth & Income | RiverFront Asset Allocation Moderate | ||||||||||
INVESTMENT INCOME | ||||||||||||
Dividends | $ | 3,659 | $ | 8,428 | $ | 6,198 | ||||||
Dividends from affiliated securities | 532,311 | 1,399,541 | 1,057,407 | |||||||||
Total Investment Income | 535,970 | 1,407,969 | 1,063,605 | |||||||||
EXPENSES | ||||||||||||
Unitary administrative fees | 69,107 | 169,774 | 135,645 | |||||||||
Distribution and service fees | ||||||||||||
Investor Class | 7,013 | 19,126 | 11,134 | |||||||||
Class A | 2,300 | 10,278 | 16,840 | |||||||||
Class C | 38,215 | 163,864 | 208,357 | |||||||||
Investor Class II | 2,549 | – | – | |||||||||
Total Expenses | 119,184 | 363,042 | 371,976 | |||||||||
Net Expenses | 119,184 | 363,042 | 371,976 | |||||||||
Net Investment Income | 416,786 | 1,044,927 | 691,629 | |||||||||
Net realized loss on investments - affiliated securities | (1,857,082 | ) | (3,546,085 | ) | (102,437 | ) | ||||||
Net realized loss | (1,857,082 | ) | (3,546,085 | ) | (102,437 | ) | ||||||
Net change in unrealized appreciation on investments - affiliated securities | 842,445 | 1,850,356 | 453,892 | |||||||||
Net change in unrealized appreciation | 842,445 | 1,850,356 | 453,892 | |||||||||
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS | (1,014,637 | ) | (1,695,729 | ) | 351,455 | |||||||
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (597,851 | ) | $ | (650,802 | ) | $ | 1,043,084 |
See Notes to Financial Statements.
158 | October 31, 2020
RiverFront Asset Allocation Aggressive
Statements of Changes in Net Assets
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 416,786 | $ | 621,156 | ||||
Net realized loss | (1,857,082 | ) | (1,523,400 | ) | ||||
Net realized gain distributions from affiliated securities | – | 5 | ||||||
Net change in unrealized appreciation | 842,445 | 2,847,100 | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | (597,851 | ) | 1,944,861 | |||||
TOTAL DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class | (79,044 | ) | (978,331 | ) | ||||
Class A | (16,860 | ) | (1,998 | ) | ||||
Class C | (89,159 | ) | (1,852,942 | ) | ||||
Class I | (101,058 | ) | (2,155,224 | ) | ||||
Investor Class II | (24,038 | ) | (458,057 | ) | ||||
Class L | (358,372 | ) | (4,257,390 | ) | ||||
Net Decrease in Net Assets from Distributions | (668,531 | ) | (9,703,942 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class | 27,937 | 1,351,202 | ||||||
Class A | 414,965 | 922,531 | ||||||
Class C | 112,219 | 445,318 | ||||||
Class I | 475,259 | 1,734,905 | ||||||
Investor Class II | 31,382 | 79,701 | ||||||
Class L | 1,329,923 | 2,056,278 | ||||||
Dividends reinvested | ||||||||
Investor Class | 76,357 | 945,702 | ||||||
Class A | 16,860 | 1,998 | ||||||
Class C | 88,963 | 1,813,092 | ||||||
Class I | 99,066 | 1,923,202 | ||||||
Investor Class II | 17,702 | 360,676 | ||||||
Class L | 357,175 | 4,241,732 | ||||||
Shares redeemed | ||||||||
Investor Class | (1,877,602 | ) | (2,121,927 | ) | ||||
Class A | (199,699 | ) | (195,850 | ) | ||||
Class C | (1,664,423 | ) | (4,449,881 | ) | ||||
Class I | (4,411,082 | ) | (7,645,415 | ) | ||||
Investor Class II | (524,176 | ) | (806,515 | ) | ||||
Class L | (5,856,097 | ) | (4,474,200 | ) | ||||
Net Decrease in Net Assets Derived from Beneficial Interest Transactions | (11,485,271 | ) | (3,817,451 | ) | ||||
Net decrease in net assets | (12,751,653 | ) | (11,576,532 | ) | ||||
NET ASSETS | ||||||||
Beginning of year | 35,712,733 | 47,289,265 | ||||||
End of year | $ | 22,961,080 | $ | 35,712,733 |
See Notes to Financial Statements.
159 | October 31, 2020
RiverFront Asset Allocation Growth & Income
Statements of Changes in Net Assets
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 1,044,927 | $ | 1,388,831 | ||||
Net realized loss | (3,546,085 | ) | (2,958,678 | ) | ||||
Net realized gain distributions from affiliated securities | – | 786 | ||||||
Net change in unrealized appreciation | 1,850,356 | 5,839,705 | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | (650,802 | ) | 4,270,644 | |||||
TOTAL DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class | (134,202 | ) | (1,336,549 | ) | ||||
Class A | (67,887 | ) | (33,358 | ) | ||||
Class C | (213,573 | ) | (3,170,284 | ) | ||||
Class I | (767,779 | ) | (6,987,237 | ) | ||||
Net Decrease in Net Assets from Distributions | (1,183,441 | ) | (11,527,428 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class | 123,506 | 203,942 | ||||||
Class A | 1,864,486 | 3,685,066 | ||||||
Class C | 798,015 | 922,731 | ||||||
Class I | 4,243,529 | 7,460,165 | ||||||
Dividends reinvested | ||||||||
Investor Class | 129,440 | 1,290,905 | ||||||
Class A | 67,753 | 33,151 | ||||||
Class C | 211,358 | 3,042,112 | ||||||
Class I | 755,180 | 6,707,400 | ||||||
Shares redeemed | ||||||||
Investor Class | (2,188,662 | ) | (4,107,208 | ) | ||||
Class A | (1,243,469 | ) | (868,285 | ) | ||||
Class C | (6,701,534 | ) | (10,941,786 | ) | ||||
Class I | (18,874,405 | ) | (22,189,473 | ) | ||||
Acquisition (Note 10) | ||||||||
Investor Class | – | 3,260,538 | ||||||
Class A | – | 913,417 | ||||||
Class C | – | 5,789,388 | ||||||
Class I | – | 10,230,419 | ||||||
Net Increase/(Decrease) in Net Assets Derived from Beneficial Interest Transactions | (20,814,803 | ) | 5,432,482 | |||||
Net decrease in net assets | (22,649,046 | ) | (1,824,302 | ) | ||||
NET ASSETS | ||||||||
Beginning of year | 82,110,271 | 83,934,573 | ||||||
End of year | $ | 59,461,225 | $ | 82,110,271 |
See Notes to Financial Statements.
160 | October 31, 2020
RiverFront Asset Allocation Moderate
Statements of Changes in Net Assets
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 691,629 | $ | 1,119,403 | ||||
Net realized loss | (102,437 | ) | (1,302,960 | ) | ||||
Net realized gain distributions from affiliated securities | – | 561 | ||||||
Net change in unrealized appreciation | 453,892 | 4,563,442 | ||||||
Net Increase in Net Assets Resulting from Operations | 1,043,084 | 4,380,446 | ||||||
TOTAL DISTRIBUTIONS | ||||||||
From distributable earnings | ||||||||
Investor Class | (66,700 | ) | (1,178,333 | ) | ||||
Class A | (101,776 | ) | (62,602 | ) | ||||
Class C | (168,779 | ) | (5,595,843 | ) | ||||
Class I | (381,939 | ) | (4,146,360 | ) | ||||
Net Decrease in Net Assets from Distributions | (719,194 | ) | (10,983,138 | ) | ||||
BENEFICIAL INTEREST TRANSACTIONS (NOTE 6) | ||||||||
Shares sold | ||||||||
Investor Class | 167,869 | 18,686 | ||||||
Class A | 3,641,533 | 7,241,268 | ||||||
Class C | 455,274 | 1,162,855 | ||||||
Class I | 2,685,022 | 2,661,508 | ||||||
Dividends reinvested | ||||||||
Investor Class | 66,302 | 1,125,741 | ||||||
Class A | 100,652 | 62,095 | ||||||
Class C | 162,523 | 5,348,120 | ||||||
Class I | 365,144 | 3,834,901 | ||||||
Shares redeemed | ||||||||
Investor Class | (1,546,495 | ) | (3,626,295 | ) | ||||
Class A | (2,067,955 | ) | (1,836,224 | ) | ||||
Class C | (11,137,381 | ) | (21,627,177 | ) | ||||
Class I | (9,739,924 | ) | (9,782,890 | ) | ||||
Acquisition (Note 10) | ||||||||
Investor Class | – | 151,471 | ||||||
Class A | – | 302,618 | ||||||
Class C | – | 4,827,033 | ||||||
Class I | – | 2,934,669 | ||||||
Net Decrease in Net Assets Derived from Beneficial Interest Transactions | (16,847,436 | ) | (7,201,621 | ) | ||||
Net decrease in net assets | (16,523,546 | ) | (13,804,313 | ) | ||||
NET ASSETS | ||||||||
Beginning of year | 63,469,737 | 77,274,050 | ||||||
End of year | $ | 46,946,191 | $ | 63,469,737 |
See Notes to Financial Statements.
161 | October 31, 2020
RiverFront Asset Allocation Aggressive – Investor Class
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018(a)(b) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 11.57 | $ | 14.59 | $ | 16.27 | $ | 13.54 | $ | 13.95 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(c) | 0.17 | 0.17 | 0.25 | 0.16 | 0.23 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.19 | ) | 0.08 | (1.27 | ) | 2.76 | (0.31 | ) | ||||||||||||
Total from investment operations | (0.02 | ) | 0.25 | (1.02 | ) | 2.92 | (0.08 | ) | ||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.24 | ) | (0.19 | ) | (0.21 | ) | (0.19 | ) | (0.20 | ) | ||||||||||
From net realized gains | – | (3.08 | ) | (0.45 | ) | – | (0.13 | ) | ||||||||||||
Total distributions | (0.24 | ) | (3.27 | ) | (0.66 | ) | (0.19 | ) | (0.33 | ) | ||||||||||
Net increase/(decrease) in net asset value | (0.26 | ) | (3.02 | ) | (1.68 | ) | 2.73 | (0.41 | ) | |||||||||||
Net asset value, end of year | $ | 11.31 | $ | 11.57 | $ | 14.59 | $ | 16.27 | $ | 13.54 | ||||||||||
TOTAL RETURN(d) | (0.33 | )% | 5.05 | % | (6.62 | )% | 21.81 | % | (0.57 | )% | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 1,862 | $ | 3,914 | $ | 4,491 | $ | 8,935 | $ | 9,618 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | % | 0.50 | % | 0.93 | % | 1.45 | % | 1.40 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | % | 0.50 | % | 0.75 | %(e) | 1.15 | % | 1.15 | % | ||||||||||
Ratio of net investment income to average net assets | 1.47 | % | 1.47 | % | 1.56 | % | 1.09 | % | 1.77 | % | ||||||||||
Portfolio turnover rate(f) | 22 | % | 18 | % | 200 | % | 60 | % | 113 | % |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Prior to February 28, 2018, the RiverFront Asset Allocation Aggressive was known as the RiverFront Global Growth Fund. |
(c) | Calculated using the average shares method. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(e) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(f) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
162 | October 31, 2020
RiverFront Asset Allocation Aggressive – Class A
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Period June 12, 2018 (Commencement of Operations) to October 31, 2018 | ||||||||||
Net asset value, beginning of period | $ | 11.48 | $ | 14.51 | $ | 16.35 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(a) | 0.15 | 0.21 | 0.16 | |||||||||
Net realized and unrealized gain/(loss) | (0.17 | ) | 0.03 | (2.00 | ) | |||||||
Total from investment operations | (0.02 | ) | 0.24 | (1.84 | ) | |||||||
DISTRIBUTIONS: | ||||||||||||
From net investment income | (0.24 | ) | (0.19 | ) | – | |||||||
From net realized gains | – | (3.08 | ) | – | ||||||||
Total distributions | (0.24 | ) | (3.27 | ) | – | |||||||
Net (decrease) in net asset value | (0.26 | ) | (3.03 | ) | (1.84 | ) | ||||||
Net asset value, end of year | $ | 11.22 | $ | 11.48 | $ | 14.51 | ||||||
TOTAL RETURN(b) | (0.33 | )% | 5.01 | % | (11.25 | )% | ||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||
Net assets, end of year (000s) | $ | 989 | $ | 756 | $ | 9 | ||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | % | 0.50 | % | 0.50 | %(c) | ||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | % | 0.50 | % | 0.50 | %(c) | ||||||
Ratio of net investment income to average net assets | 1.38 | % | 1.88 | % | 2.66 | %(c) | ||||||
Portfolio turnover rate(d) | 22 | % | 18 | % | 200 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
163 | October 31, 2020
RiverFront Asset Allocation Aggressive – Class C
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 10.89 | $ | 14.01 | $ | 15.73 | $ | 13.18 | $ | 13.67 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(b) | 0.07 | 0.08 | 0.12 | 0.04 | 0.12 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.17 | ) | 0.05 | (1.20 | ) | 2.68 | (0.30 | ) | ||||||||||||
Total from investment operations | (0.10 | ) | 0.13 | (1.08 | ) | 2.72 | (0.18 | ) | ||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.22 | ) | (0.17 | ) | (0.19 | ) | (0.17 | ) | (0.18 | ) | ||||||||||
From net realized gains | – | (3.08 | ) | (0.45 | ) | – | (0.13 | ) | ||||||||||||
Total distributions | (0.22 | ) | (3.25 | ) | (0.64 | ) | (0.17 | ) | (0.31 | ) | ||||||||||
Net increase/(decrease) in net asset value | (0.32 | ) | (3.12 | ) | (1.72 | ) | 2.55 | (0.49 | ) | |||||||||||
Net asset value, end of year | $ | 10.57 | $ | 10.89 | $ | 14.01 | $ | 15.73 | $ | 13.18 | ||||||||||
TOTAL RETURN(c) | (1.04 | )% | 4.23 | % | (7.24 | )% | 20.87 | % | (1.31 | )% | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 3,147 | $ | 4,758 | $ | 8,597 | $ | 10,408 | $ | 11,447 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.25 | % | 1.25 | % | 1.63 | % | 2.20 | % | 2.16 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.25 | % | 1.25 | % | 1.47 | %(d) | 1.90 | % | 1.90 | % | ||||||||||
Ratio of net investment income to average net assets | 0.69 | % | 0.71 | % | 0.80 | % | 0.29 | % | 0.92 | % | ||||||||||
Portfolio turnover rate(e) | 22 | % | 18 | % | 200 | % | 60 | % | 113 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Aggressive was known as the RiverFront Global Growth Fund. |
(b) | Calculated using the average shares method. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(d) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
164 | October 31, 2020
RiverFront Asset Allocation Aggressive – Class I
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 11.79 | $ | 14.78 | $ | 16.43 | $ | 13.65 | $ | 14.03 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(b) | 0.20 | 0.21 | 0.29 | 0.19 | 0.26 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.19 | ) | 0.07 | (1.27 | ) | 2.78 | (0.30 | ) | ||||||||||||
Total from investment operations | 0.01 | 0.28 | (0.98 | ) | 2.97 | (0.04 | ) | |||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.24 | ) | (0.19 | ) | (0.22 | ) | (0.19 | ) | (0.21 | ) | ||||||||||
From net realized gains | – | (3.08 | ) | (0.45 | ) | – | (0.13 | ) | ||||||||||||
Total distributions | (0.24 | ) | (3.27 | ) | (0.67 | ) | (0.19 | ) | (0.34 | ) | ||||||||||
Net increase/(decrease) in net asset value | (0.23 | ) | (2.99 | ) | (1.65 | ) | 2.78 | (0.38 | ) | |||||||||||
Net asset value, end of year | $ | 11.56 | $ | 11.79 | $ | 14.78 | $ | 16.43 | $ | 13.65 | ||||||||||
TOTAL RETURN(c) | (0.02 | )% | 5.29 | % | (6.33 | )% | 22.05 | % | (0.31 | )% | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 2,945 | $ | 7,003 | $ | 12,701 | $ | 13,873 | $ | 10,140 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.25 | % | 0.25 | % | 0.62 | % | 1.20 | % | 1.15 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.25 | % | 0.25 | % | 0.46 | %(d) | 0.90 | % | 0.90 | % | ||||||||||
Ratio of net investment income to average net assets | 1.73 | % | 1.77 | % | 1.79 | % | 1.29 | % | 1.98 | % | ||||||||||
Portfolio turnover rate(e) | 22 | % | 18 | % | 200 | % | 60 | % | 113 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Aggressive was known as the RiverFront Global Growth Fund. |
(b) | Calculated using the average shares method. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(d) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
165 | October 31, 2020
RiverFront Asset Allocation Aggressive – Investor Class II
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018(a)(b) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 11.47 | $ | 14.50 | $ | 16.18 | $ | 13.47 | $ | 13.87 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(c) | 0.16 | 0.18 | 0.25 | 0.15 | 0.23 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.18 | ) | 0.06 | (1.27 | ) | 2.75 | (0.30 | ) | ||||||||||||
Total from investment operations | (0.02 | ) | 0.24 | (1.02 | ) | 2.90 | (0.07 | ) | ||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.24 | ) | (0.19 | ) | (0.21 | ) | (0.19 | ) | (0.20 | ) | ||||||||||
From net realized gains | – | (3.08 | ) | (0.45 | ) | – | (0.13 | ) | ||||||||||||
Total distributions | (0.24 | ) | (3.27 | ) | (0.66 | ) | (0.19 | ) | (0.33 | ) | ||||||||||
Net increase/(decrease) in net asset value | (0.26 | ) | (3.03 | ) | (1.68 | ) | 2.71 | (0.40 | ) | |||||||||||
Net asset value, end of year | $ | 11.21 | $ | 11.47 | $ | 14.50 | $ | 16.18 | $ | 13.47 | ||||||||||
TOTAL RETURN(d) | (0.33 | )% | 5.02 | % | (6.66 | )% | 21.77 | % | (0.51 | )% | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 741 | $ | 1,255 | $ | 2,043 | $ | 3,451 | $ | 4,667 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | % | 0.50 | % | 0.91 | % | 1.45 | % | 1.40 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | % | 0.50 | % | 0.74 | %(e) | 1.15 | % | 1.15 | % | ||||||||||
Ratio of net investment income to average net assets | 1.41 | % | 1.53 | % | 1.58 | % | 1.04 | % | 1.75 | % | ||||||||||
Portfolio turnover rate(f) | 22 | % | 18 | % | 200 | % | 60 | % | 113 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Aggressive was known as the RiverFront Global Growth Fund. |
(b) | Prior to December 1, 2017, Investor Class II was known as Investor Class. |
(c) | Calculated using the average shares method. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(e) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(f) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
166 | October 31, 2020
RiverFront Asset Allocation Aggressive – Class L
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 11.77 | $ | 14.76 | $ | 16.41 | $ | 13.63 | $ | 14.01 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(b) | 0.19 | 0.21 | 0.30 | 0.19 | 0.25 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.19 | ) | 0.07 | (1.28 | ) | 2.78 | (0.29 | ) | ||||||||||||
Total from investment operations | – | 0.28 | (0.98 | ) | 2.97 | (0.04 | ) | |||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.24 | ) | (0.19 | ) | (0.22 | ) | (0.19 | ) | (0.21 | ) | ||||||||||
From net realized gains | – | (3.08 | ) | (0.45 | ) | – | (0.13 | ) | ||||||||||||
Total distributions | (0.24 | ) | (3.27 | ) | (0.67 | ) | (0.19 | ) | (0.34 | ) | ||||||||||
Net increase/(decrease) in net asset value | (0.24 | ) | (2.99 | ) | (1.65 | ) | 2.78 | (0.38 | ) | |||||||||||
Net asset value, end of year | $ | 11.53 | $ | 11.77 | $ | 14.76 | $ | 16.41 | $ | 13.63 | ||||||||||
TOTAL RETURN(c) | (0.11 | )% | 5.30 | % | (6.34 | )% | 22.08 | % | (0.31 | )% | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 13,277 | $ | 18,026 | $ | 19,449 | $ | 25,309 | $ | 22,552 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.25 | % | 0.25 | % | 0.63 | % | 1.20 | % | 1.16 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.25 | % | 0.25 | % | 0.47 | %(d) | 0.90 | % | 0.90 | % | ||||||||||
Ratio of net investment income to average net assets | 1.68 | % | 1.77 | % | 1.82 | % | 1.27 | % | 1.90 | % | ||||||||||
Portfolio turnover rate(e) | 22 | % | 18 | % | 200 | % | 60 | % | 113 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Aggressive was known as the RiverFront Global Growth Fund. |
(b) | Calculated using the average shares method. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(d) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
167 | October 31, 2020
RiverFront Asset Allocation Growth & Income – Investor Class
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018(a)(b) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 12.02 | $ | 13.37 | $ | 14.48 | $ | 12.38 | $ | 12.63 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(c) | 0.18 | 0.23 | 0.25 | 0.17 | 0.21 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.16 | ) | 0.41 | (0.80 | ) | 2.09 | (0.00 | )(d) | ||||||||||||
Total from investment operations | 0.02 | 0.64 | (0.55 | ) | 2.26 | 0.21 | ||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.20 | ) | (0.21 | ) | (0.24 | ) | (0.16 | ) | (0.21 | ) | ||||||||||
From net realized gains | – | (1.78 | ) | (0.32 | ) | – | (0.25 | ) | ||||||||||||
Total distributions | (0.20 | ) | (1.99 | ) | (0.56 | ) | (0.16 | ) | (0.46 | ) | ||||||||||
Net increase/(decrease) in net asset value | (0.18 | ) | (1.35 | ) | (1.11 | ) | 2.10 | (0.25 | ) | |||||||||||
Net asset value, end of year | $ | 11.84 | $ | 12.02 | $ | 13.37 | $ | 14.48 | $ | 12.38 | ||||||||||
TOTAL RETURN(e) | 0.27 | % | 6.71 | % | (4.03 | )% | 18.37 | % | 1.80 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 6,802 | $ | 8,864 | $ | 9,062 | $ | 19,123 | $ | 20,227 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | % | 0.50 | % | 0.85 | % | 1.37 | % | 1.35 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | % | 0.50 | % | 0.74 | %(f) | 1.15 | % | 1.15 | % | ||||||||||
Ratio of net investment income to average net assets | 1.57 | % | 1.91 | % | 1.70 | % | 1.24 | % | 1.74 | % | ||||||||||
Portfolio turnover rate(g) | 33 | % | 62 | % | 224 | % | 63 | % | 129 | % |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Prior to February 28, 2018, the RiverFront Asset Allocation Growth & Income was known as the RiverFront Dynamic Equity Income Fund. |
(c) | Calculated using the average shares method. |
(d) | Less than $0.005 or ($0.005) per share. |
(e) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(f) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(g) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
168 | October 31, 2020
RiverFront Asset Allocation Growth & Income – Class A
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Period June 12, 2018 (Commencement of Operations) to October 31, 2018 | ||||||||||
Net asset value, beginning of period | $ | 12.01 | $ | 13.36 | $ | 14.70 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(a) | 0.18 | 0.25 | 0.15 | |||||||||
Net realized and unrealized gain/(loss) | (0.16 | ) | 0.39 | (1.34 | ) | |||||||
Total from investment operations | 0.02 | 0.64 | (1.19 | ) | ||||||||
DISTRIBUTIONS: | ||||||||||||
From net investment income | (0.20 | ) | (0.21 | ) | (0.15 | ) | ||||||
From net realized gains | – | (1.78 | ) | – | ||||||||
Total distributions | (0.20 | ) | (1.99 | ) | (0.15 | ) | ||||||
Net (decrease) in net asset value | (0.18 | ) | (1.35 | ) | (1.34 | ) | ||||||
Net asset value, end of year | $ | 11.83 | $ | 12.01 | $ | 13.36 | ||||||
TOTAL RETURN(b) | 0.28 | % | 6.78 | % | (8.13 | )% | ||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||
Net assets, end of year (000s) | $ | 4,489 | $ | 3,839 | $ | 13 | ||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | % | 0.50 | % | 0.50 | %(c) | ||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | % | 0.50 | % | 0.50 | %(c) | ||||||
Ratio of net investment income to average net assets | 1.52 | % | 2.13 | % | 2.65 | %(c) | ||||||
Portfolio turnover rate(d) | 33 | % | 62 | % | 224 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
169 | October 31, 2020
RiverFront Asset Allocation Growth & Income – Class C
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 11.65 | $ | 13.03 | $ | 14.16 | $ | 12.15 | $ | 12.44 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(b) | 0.09 | 0.13 | 0.14 | 0.07 | 0.13 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.15 | ) | 0.40 | (0.78 | ) | 2.05 | (0.02 | ) | ||||||||||||
Total from investment operations | (0.06 | ) | 0.53 | (0.64 | ) | 2.12 | 0.11 | |||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.14 | ) | (0.13 | ) | (0.17 | ) | (0.11 | ) | (0.15 | ) | ||||||||||
From net realized gains | – | (1.78 | ) | (0.32 | ) | – | (0.25 | ) | ||||||||||||
Total distributions | (0.14 | ) | (1.91 | ) | (0.49 | ) | (0.11 | ) | (0.40 | ) | ||||||||||
Net increase/(decrease) in net asset value | (0.20 | ) | (1.38 | ) | (1.13 | ) | 2.01 | (0.29 | ) | |||||||||||
Net asset value, end of year | $ | 11.45 | $ | 11.65 | $ | 13.03 | $ | 14.16 | $ | 12.15 | ||||||||||
TOTAL RETURN(c) | (0.44 | )% | 5.91 | % | (4.74 | )% | 17.53 | % | 0.97 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 13,642 | $ | 19,798 | $ | 23,111 | $ | 26,514 | $ | 32,217 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.25 | % | 1.25 | % | 1.57 | % | 2.12 | % | 2.10 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.25 | % | 1.25 | % | 1.47 | %(d) | 1.90 | % | 1.90 | % | ||||||||||
Ratio of net investment income to average net assets | 0.82 | % | 1.15 | % | 1.01 | % | 0.51 | % | 1.08 | % | ||||||||||
Portfolio turnover rate(e) | 33 | % | 62 | % | 224 | % | 63 | % | 129 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Growth & Income was known as the RiverFront Dynamic Equity Income Fund. |
(b) | Calculated using the average shares method. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(d) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
170 | October 31, 2020
RiverFront Asset Allocation Growth & Income – Class I
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 11.97 | $ | 13.31 | $ | 14.42 | $ | 12.31 | $ | 12.56 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(b) | 0.22 | 0.26 | 0.29 | 0.20 | 0.25 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.18 | ) | 0.41 | (0.82 | ) | 2.09 | (0.01 | ) | ||||||||||||
Total from investment operations | 0.04 | 0.67 | (0.53 | ) | 2.29 | 0.24 | ||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.22 | ) | (0.23 | ) | (0.26 | ) | (0.18 | ) | (0.24 | ) | ||||||||||
From net realized gains | – | (1.78 | ) | (0.32 | ) | – | (0.25 | ) | ||||||||||||
Total distributions | (0.22 | ) | (2.01 | ) | (0.58 | ) | (0.18 | ) | (0.49 | ) | ||||||||||
Net increase/(decrease) in net asset value | (0.18 | ) | (1.34 | ) | (1.11 | ) | 2.11 | �� | (0.25 | ) | ||||||||||
Net asset value, end of year | $ | 11.79 | $ | 11.97 | $ | 13.31 | $ | 14.42 | $ | 12.31 | ||||||||||
TOTAL RETURN(c) | 0.46 | % | 7.07 | % | (3.88 | )% | 18.75 | % | 2.01 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 34,529 | $ | 49,610 | $ | 51,749 | $ | 33,484 | $ | 28,833 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.25 | % | 0.25 | % | 0.53 | % | 1.12 | % | 1.10 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.25 | % | 0.25 | % | 0.44 | %(d) | 0.90 | % | 0.90 | % | ||||||||||
Ratio of net investment income to average net assets | 1.83 | % | 2.17 | % | 2.04 | % | 1.50 | % | 2.06 | % | ||||||||||
Portfolio turnover rate(e) | 33 | % | 62 | % | 224 | % | 63 | % | 129 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Growth & Income was known as the RiverFront Dynamic Equity Income Fund. |
(b) | Calculated using the average shares method. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(d) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
171 | October 31, 2020
RiverFront Asset Allocation Moderate – Investor Class
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018(a)(b) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 10.46 | $ | 11.54 | $ | 12.47 | $ | 11.22 | $ | 11.48 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(c) | 0.15 | 0.21 | 0.22 | 0.18 | 0.21 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.05 | 0.49 | (0.36 | ) | 1.23 | (0.01 | ) | |||||||||||||
Total from investment operations | 0.20 | 0.70 | (0.14 | ) | 1.41 | 0.20 | ||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.16 | ) | (0.20 | ) | (0.22 | ) | (0.16 | ) | (0.21 | ) | ||||||||||
From net realized gains | – | (1.58 | ) | (0.57 | ) | – | (0.25 | ) | ||||||||||||
Total distributions | (0.16 | ) | (1.78 | ) | (0.79 | ) | (0.16 | ) | (0.46 | ) | ||||||||||
Net increase/(decrease) in net asset value | 0.04 | (1.08 | ) | (0.93 | ) | 1.25 | (0.26 | ) | ||||||||||||
Net asset value, end of year | $ | 10.50 | $ | 10.46 | $ | 11.54 | $ | 12.47 | $ | 11.22 | ||||||||||
TOTAL RETURN(d) | 1.95 | % | 7.99 | % | (1.32 | )% | 12.67 | % | 1.81 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 3,883 | $ | 5,162 | $ | 8,244 | $ | 13,311 | $ | 22,679 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | % | 0.50 | % | 0.84 | % | 1.33 | % | 1.31 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | % | 0.50 | % | 0.74 | %(e) | 1.15 | % | 1.15 | % | ||||||||||
Ratio of net investment income to average net assets | 1.46 | % | 2.00 | % | 1.78 | % | 1.49 | % | 1.87 | % | ||||||||||
Portfolio turnover rate(f) | 20 | % | 41 | % | 209 | % | 56 | % | 132 | % |
(a) | Prior to December 1, 2017, Investor Class was known as Class A. |
(b) | Prior to February 28, 2018, the RiverFront Asset Allocation Moderate was known as the RiverFront Moderate Growth & Income Fund. |
(c) | Calculated using the average shares method. |
(d) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(e) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(f) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
172 | October 31, 2020
RiverFront Asset Allocation Moderate – Class A
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Period June 12, 2018 (Commencement of Operations) to October 31, 2018 | ||||||||||
Net asset value, beginning of period | $ | 10.45 | $ | 11.53 | $ | 12.28 | ||||||
INCOME FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(a) | 0.15 | 0.20 | 0.11 | |||||||||
Net realized and unrealized gain/(loss) | 0.05 | 0.51 | (0.74 | ) | ||||||||
Total from investment operations | 0.20 | 0.71 | (0.63 | ) | ||||||||
DISTRIBUTIONS: | ||||||||||||
From net investment income | (0.16 | ) | (0.21 | ) | (0.12 | ) | ||||||
From net realized gains | – | (1.58 | ) | – | ||||||||
Total distributions | (0.16 | ) | (1.79 | ) | (0.12 | ) | ||||||
Net increase/(decrease) in net asset value | 0.04 | (1.08 | ) | (0.75 | ) | |||||||
Net asset value, end of year | $ | 10.49 | $ | 10.45 | $ | 11.53 | ||||||
TOTAL RETURN(b) | 1.96 | % | 8.07 | % | (5.15 | )% | ||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||
Net assets, end of year (000s) | $ | 7,680 | $ | 5,933 | $ | 9 | ||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.50 | % | 0.50 | % | 0.50 | %(c) | ||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.50 | % | 0.50 | % | 0.50 | %(c) | ||||||
Ratio of net investment income to average net assets | 1.43 | % | 1.92 | % | 2.44 | %(c) | ||||||
Portfolio turnover rate(d) | 20 | % | 41 | % | 209 | % |
(a) | Calculated using the average shares method. |
(b) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(c) | Annualized. |
(d) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
173 | October 31, 2020
RiverFront Asset Allocation Moderate – Class C
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 10.30 | $ | 11.39 | $ | 12.34 | $ | 11.12 | $ | 11.39 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(b) | 0.07 | 0.13 | 0.12 | 0.08 | 0.13 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.05 | 0.49 | (0.36 | ) | 1.24 | (0.02 | ) | |||||||||||||
Total from investment operations | 0.12 | 0.62 | (0.24 | ) | 1.32 | 0.11 | ||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.08 | ) | (0.13 | ) | (0.14 | ) | (0.10 | ) | (0.13 | ) | ||||||||||
From net realized gains | – | (1.58 | ) | (0.57 | ) | – | (0.25 | ) | ||||||||||||
Total distributions | (0.08 | ) | (1.71 | ) | (0.71 | ) | (0.10 | ) | (0.38 | ) | ||||||||||
Net increase/(decrease) in net asset value | 0.04 | (1.09 | ) | (0.95 | ) | 1.22 | (0.27 | ) | ||||||||||||
Net asset value, end of year | $ | 10.34 | $ | 10.30 | $ | 11.39 | $ | 12.34 | $ | 11.12 | ||||||||||
TOTAL RETURN(c) | 1.21 | % | 7.23 | % | (2.16 | )% | 11.94 | % | 1.03 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 16,353 | $ | 26,831 | $ | 40,792 | $ | 51,231 | $ | 63,480 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 1.25 | % | 1.25 | % | 1.56 | % | 2.08 | % | 2.06 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 1.25 | % | 1.25 | % | 1.47 | %(d) | 1.90 | % | 1.90 | % | ||||||||||
Ratio of net investment income to average net assets | 0.72 | % | 1.27 | % | 1.03 | % | 0.70 | % | 1.14 | % | ||||||||||
Portfolio turnover rate(e) | 20 | % | 41 | % | 209 | % | 56 | % | 132 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Moderate was known as the RiverFront Moderate Growth & Income Fund. |
(b) | Calculated using the average shares method. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Returns shown exclude any applicable sales charges. |
(d) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
174 | October 31, 2020
RiverFront Asset Allocation Moderate – Class I
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated:
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | For the Year Ended October 31, 2018(a) | For the Year Ended October 31, 2017 | For the Year Ended October 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 10.47 | $ | 11.54 | $ | 12.48 | $ | 11.21 | $ | 11.47 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(b) | 0.18 | 0.23 | 0.25 | 0.20 | 0.24 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.04 | 0.50 | (0.37 | ) | 1.25 | (0.01 | ) | |||||||||||||
Total from investment operations | 0.22 | 0.73 | (0.12 | ) | 1.45 | 0.23 | ||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||
From net investment income | (0.18 | ) | (0.22 | ) | (0.25 | ) | (0.18 | ) | (0.24 | ) | ||||||||||
From net realized gains | – | (1.58 | ) | (0.57 | ) | – | (0.25 | ) | ||||||||||||
Total distributions | (0.18 | ) | (1.80 | ) | (0.82 | ) | (0.18 | ) | (0.49 | ) | ||||||||||
Net increase/(decrease) in net asset value | 0.04 | (1.07 | ) | (0.94 | ) | 1.27 | (0.26 | ) | ||||||||||||
Net asset value, end of year | $ | 10.51 | $ | 10.47 | $ | 11.54 | $ | 12.48 | $ | 11.21 | ||||||||||
TOTAL RETURN(c) | 2.19 | % | 8.36 | % | (1.16 | )% | 13.05 | % | 2.05 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (000s) | $ | 19,030 | $ | 25,544 | $ | 28,228 | $ | 30,913 | $ | 43,056 | ||||||||||
Ratio of expenses to average net assets excluding fee waivers and reimbursements | 0.25 | % | 0.25 | % | 0.56 | % | 1.08 | % | 1.06 | % | ||||||||||
Ratio of expenses to average net assets including fee waivers and reimbursements | 0.25 | % | 0.25 | % | 0.47 | %(d) | 0.90 | % | 0.90 | % | ||||||||||
Ratio of net investment income to average net assets | 1.71 | % | 2.25 | % | 2.02 | % | 1.71 | % | 2.16 | % | ||||||||||
Portfolio turnover rate(e) | 20 | % | 41 | % | 209 | % | 56 | % | 132 | % |
(a) | Prior to February 28, 2018, the RiverFront Asset Allocation Moderate was known as the RiverFront Moderate Growth & Income Fund. |
(b) | Calculated using the average shares method. |
(c) | Total returns are for the period indicated and have not been annualized. Total returns would have been lower had certain expenses not been waived during the period. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(d) | Effective February 28, 2018, pursuant to the Administrative Services Agreement, the Fund pays an annual unitary administrative fee, which is based on the Fund’s average daily net assets, and will no longer pay a management fee or contractually limit the Fund’s total annual expenses. Refer to Note 8. |
(e) | Portfolio turnover rate for periods less than one full year have not been annualized. |
See Notes to Financial Statements.
175 | October 31, 2020
Notes to Financial Statements |
October 31, 2020 |
1. ORGANIZATION
Financial Investors Trust (the “Trust”), a Delaware statutory trust, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (“1940 Act”). The Trust consists of multiple separate portfolios or series. This annual report includes the financial statements and financial highlights of the following 11 funds: ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund, ALPS | Kotak India Growth Fund, ALPS | Red Rocks Global Opportunity Fund, Clough China Fund, RiverFront Asset Allocation Aggressive, RiverFront Asset Allocation Growth & Income, RiverFront Asset Allocation Moderate, ALPS | Smith Total Return Bond Fund, ALPS | Smith Short Duration Bond Fund, ALPS | Smith Balanced Opportunity Fund, and ALPS | Smith Credit Opportunities Fund (each, a “Fund” and collectively, the “Funds”). Prior to March 31, 2020, the ALPS | Red Rocks Global Opportunity Fund was known as the ALPS | Red Rocks Listed Private Equity Fund.
The ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund seeks to maximize real returns (returns after inflation), consistent with prudent investment management. ALPS | Kotak India Growth Fund’s investment goal is long-term capital appreciation. The ALPS | Red Rocks Global Opportunity Fund seeks to maximize total return, which consists of appreciation on its investments and a variable income stream. The Clough China Fund seeks to provide investors with long-term capital appreciation. Effective February 28, 2018, the RiverFront Asset Allocation Aggressive seeks to achieve long-term capital appreciation, RiverFront Asset Allocation Growth & Income seeks to achieve long-term growth and income, the RiverFront Asset Allocation Moderate has two primary investment objectives- it seeks (1) to provide a level of current income that exceeds the average yield on U.S. stocks, and (2) growth of capital. The ALPS | Smith Total Return Bond Fund capital seeks to obtain maximum total return, consistent with preservation of capital. The ALPS | Smith Short Duration Bond Fund seeks as high a level of current income as is consistent with preservation of capital. The ALPS | Smith Balanced Opportunity Fund seeks long-term capital growth, consistent with presercation of capital and balanced by current income. The ALPS | Smith Credit Opportunities Fund seeks to obtain maximum risk-adjusted return with a secondary focus on high current income.
The classes of each Fund differ principally in the applicable distribution and shareholder service fees. Shareholders of each class also bear certain expenses that pertain to that particular class. All shareholders bear the common expenses of the Fund and earn income and realized gains/losses from the Fund pro rata based on the average daily net assets of each class, without distinction between share classes. Dividends to shareholders are determined separately for each class based on income and expenses allocable to each class. Realized gain distributions to shareholders are allocated to each class pro rata based on the shares outstanding of each class on the date of distribution. Differences in per share dividend rates generally result from differences in separate class expenses, including distribution and shareholder service fees, if applicable.
Basis of Consolidation for the ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund
CoreCommodity Management Cayman Commodity Fund Ltd. (the “Subsidiary”), a Cayman Islands exempted company, was incorporated on April 23, 2010 and is a wholly owned subsidiary of the ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund (the “CoreCommodity Fund”). The Subsidiary acts as an investment vehicle for the CoreCommodity Fund in order to effect certain commodity-related investments on behalf of the CoreCommodity Fund. CoreCommodity Fund is the sole shareholder of the Subsidiary pursuant to a subscription agreement dated as of June 14, 2010, and it is intended that the CoreCommodity Fund will remain the sole shareholder and will continue to wholly own and control the Subsidiary. Under the Articles of Association of the Subsidiary, shares issued by the Subsidiary confer upon a shareholder the right to vote at general meetings of the Subsidiary and certain rights in connection with any winding-up or repayment of capital, as well as the right to participate in the profits or assets of the Subsidiary. The CoreCommodity Fund may invest up to 25% of its total assets in shares of the Subsidiary. As a wholly owned subsidiary of the CoreCommodity Fund, the financial statements of the Subsidiary are included in the consolidated financial statements and financial highlights of the CoreCommodity Fund. All investments held by the Subsidiary are disclosed in the accounts of the CoreCommodity Fund. As of October 31, 2020, net assets of the CoreCommodity Fund were $491,920,718 of which $101,468,297 or 20.63%, represented the CoreCommodity Fund’s ownership of all issued shares and voting rights of the Subsidiary.
Basis of Consolidation for the ALPS | Kotak India Growth Fund
ALPS | Kotak India Growth Fund, (the “Kotak Fund”) invests in the equity securities of Indian companies through its wholly owned, collective investment vehicle, the India Premier Equity Portfolio (the “Portfolio”). The Portfolio is registered with and regulated by the Mauritius Financial Services Commission. The Portfolio was formed for the purpose of facilitating the Kotak Fund’s purchase of securities of a wide selection of Indian companies, consistent with the Kotak Fund’s investment strategies. The Portfolio is a private company limited by shares incorporated under the Mauritius Companies Act 2001. As a wholly owned subsidiary of the Kotak Fund, financial statements of the Portfolio are included in the consolidated financial statements and financial highlights of the Kotak Fund. All investments held by the Portfolio are disclosed in the accounts of the Kotak Fund. As of October 31, 2020, net assets of the Kotak Fund were $162,637,998 of which $0 or 0%, represented the Kotak Fund’s ownership of all issued shares and voting rights of the Subsidiary. As of October 31, 2020 the Subsidiary liquidated.
The Portfolio is a tax resident of Mauritius enabling it to claim beneficial tax treatment provided under the tax treaty between India and Mauritius. Prior to April 1, 2017, the tax treaty allowed the portfolio to claim full exemption from capital gains on sale of Indian securities. However, pursuant to the changes to the tax treaty between India and Mauritius effective April 1, 2017, the gains arising to the portfolio from sale of shares of Indian companies are taxable in India except for gains arising from sale of shares which were purchased prior to April 1, 2017. The tax treaty still allows
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the portfolio to claim exemption on capital gains arising from securities other than shares. Further, India enacted the General Anti-Avoidance Rule (GAAR) in its tax law effective April 1, 2017 which contains treaty override provisions whereby the Indian tax authorities could deny treaty benefits to the portfolio if it is established that the main purpose of the investments made through the portfolio is to benefit from the tax treaty and the portfolio does not have sufficient commercial substance in Mauritius or one of the other GAAR test is satisfied.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. Each Fund is considered an investment company for financial reporting purposes, and follows accounting policies in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), including policies specific to investment companies. The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Funds and subsidiaries, as applicable, in preparation of their financial statements. The Funds are considered investment companies under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board Accounting Standards Codification Topic 946.
Investment Valuation: The Funds generally value their securities based on market prices determined at the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern Time, on each day the NYSE is open for trading. For equity securities and mutual funds that are traded on an exchange, the market price is usually the closing sale or official closing price on that exchange.
The market price for debt obligations is generally the price supplied by an independent third-party pricing service approved by the Board, which may use a matrix, formula or other objective method that takes into consideration quotations from dealers, market transactions in comparable investments, market indices and yield curves. If vendors are unable to supply a price, or if the price supplied is deemed to be unreliable, the market price may be determined using quotations received from one or more brokers-dealers that make a market in the security. Investments in non-exchange traded funds are fair valued at their respective net asset values. Bonds may be purchased and held as odd lots. Pricing vendors generally value securities assuming orderly transactions of institutional round lot sizes, but a Fund may hold or transact in such securities in smaller, odd lot sizes. Special valuation considerations may apply with respect to a Fund’s odd-lot positions, as the Fund may receive different prices when it sells such positions than it would receive for sales of institutional round lot positions. The ALPS | Smith Total Return Bond Fund, the ALPS | Smith Short Duration Bond Fund, ALPS | Smith Balanced Opportunity Fund, and ALPS | Smith Credit Opportunities Fund have odd lot pricing policies it employs to value odd lot securities.
Futures contracts that are listed or traded on a national securities exchange, commodities exchange, contract market or comparable over the counter market, and that are freely transferable, are valued at their closing settlement price on the exchange on which they are primarily traded or based upon the current settlement price for a like instrument acquired on the day on which the instrument is being valued. A settlement price may not be used if the market makes a limit move with respect to a particular commodity. Over-the-counter swap contracts are valued based on quotes received from independent pricing services or one or more dealers that make markets in such investments.
Option contracts are valued using the National Best Bid and Offer price (“NBBO”). In the event there is no NBBO price available, option contracts are valued at the mean between the last bid and ask.
For ALPS | Kotak India Growth Fund, ALPS | Red Rocks Global Opportunity Fund, and Clough China Fund, who hold equity securities that are primarily traded on foreign securities exchanges, such securities are valued at the closing values of such securities on their respective foreign exchanges, except when an event occurs subsequent to the close of the foreign exchange and the close of the NYSE that was likely to have changed such value. In such an event, the fair value of those securities are determined in good faith through consideration of other factors in accordance with procedures established by and under the general supervision of the Board. The Funds will use a fair valuation model provided by an independent pricing service, which is intended to reflect fair value when a security’s value or a meaningful portion of the Fund’s portfolio is believed to have been materially affected by an valuation event that has occurred between the close of the exchange or market on which the security is traded and the close of the regular trading day on the NYSE.
Forward currency exchange contracts have a value determined by the current foreign currency exchange forward rates. The foreign currency exchange forward rates are calculated using an automated system that estimates rates on the basis of the current day foreign currency exchange rates and forward foreign currency exchange rates supplied by a pricing service. Foreign exchange rates and forward foreign currency exchange rates may generally be obtained at the close of the NYSE, normally 4:00 p.m. Eastern Time.
When such prices or quotations are not available, or when the Fair Value Committee appointed by the Board believes that they are unreliable, securities may be priced using fair value procedures approved by the Board. The fair valuation policies and procedures (“FV Procedures”) have been
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adopted by the Board for the fair valuation of portfolio assets held by the Fund(s) in the event that (1) market quotations for the current price of a portfolio security or asset are not readily available, or (2) available market quotations that would otherwise be used to value a portfolio security or asset in accordance with the Fund’s Pricing Procedures appear to be unreliable. The Pricing Procedures reflect certain pricing methodologies (or “logics”) that are not “readily available market quotations” and thus are viewed and treated as fair valuations. The Fair Value Committee routinely meets to discuss fair valuations of portfolio securities and other instruments held by the Fund(s).
Fair Value Measurements: The Funds disclose the classification of their fair value measurements following a three-tier hierarchy based on the inputs used to measure fair value. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.
Various inputs are used in determining the value of each Fund’s investments as of the end of the reporting period. When inputs used fall into different levels of the fair value hierarchy, the level in the hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments. These inputs are categorized in the following hierarchy under applicable financial accounting standards:
Level 1 – | Unadjusted quoted prices in active markets for identical investments, unrestricted assets or liabilities that a Fund has the ability to access at the measurement date; |
Level 2 – | Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and |
Level 3 – | Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date. |
The following is a summary of each Fund’s investments/financial instruments in the fair value hierarchy as of October 31, 2020:
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | ||||||||||||||||
Common Stocks(a) | ||||||||||||||||
United States | $ | 55,100,984 | $ | 103 | $ | – | $ | 55,101,087 | ||||||||
Other | 89,197,865 | – | – | 89,197,865 | ||||||||||||
Master Limited Partnerships(a) | 321,591 | – | – | 321,591 | ||||||||||||
Government Bonds | – | 312,204,690 | – | 312,204,690 | ||||||||||||
Total | $ | 144,620,440 | $ | 312,204,793 | $ | – | $ | 456,825,233 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 6,387,106 | $ | – | $ | – | $ | 6,387,106 | ||||||||
Liabilities | ||||||||||||||||
Total Return Swap Contracts | – | (329 | ) | – | (329 | ) | ||||||||||
Futures Contracts | (12,022,469 | ) | – | – | (12,022,469 | ) | ||||||||||
Total | $ | (5,635,363 | ) | $ | (329 | ) | $ | – | $ | (5,635,692 | ) |
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Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
ALPS | Kotak India Growth Fund | ||||||||||||||||
Common Stocks | ||||||||||||||||
Communication Services | $ | – | $ | 3,258,071 | $ | – | $ | 3,258,071 | ||||||||
Consumer Discretionary | – | 16,518,272 | – | 16,518,272 | ||||||||||||
Consumer Staples | – | 12,849,113 | – | 12,849,113 | ||||||||||||
Energy | – | 13,158,481 | – | 13,158,481 | ||||||||||||
Financials | 9,204,293 | 38,228,673 | – | 47,432,966 | ||||||||||||
Health Care | 1,890,216 | 8,183,177 | – | 10,073,393 | ||||||||||||
Industrials | – | 13,393,337 | – | 13,393,337 | ||||||||||||
Information Technology | 1,525,306 | 23,204,419 | – | 24,729,725 | ||||||||||||
Materials | – | 15,659,426 | – | 15,659,426 | ||||||||||||
Real Estate | – | 2,162,394 | – | 2,162,394 | ||||||||||||
Utilities | – | 1,386,785 | – | 1,386,785 | ||||||||||||
Total | $ | 12,619,815 | $ | 148,002,148 | $ | – | $ | 160,621,963 |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
ALPS | Smith Short Duration Bond Fund | ||||||||||||||||
Collateralized Mortgage Obligations | $ | – | $ | 2,986,850 | $ | – | $ | 2,986,850 | ||||||||
Commercial Mortgage-Backed Securities | – | 741,105 | – | 741,105 | ||||||||||||
Mortgage-Backed Securities | – | 3,859,236 | – | 3,859,236 | ||||||||||||
Corporate Bonds | – | 126,515,437 | – | 126,515,437 | ||||||||||||
Government Bonds | – | 43,586,379 | – | 43,586,379 | ||||||||||||
Municipal Bonds | – | 125,210 | – | 125,210 | ||||||||||||
Short Term Investments | 1,237,073 | – | – | 1,237,073 | ||||||||||||
Total | $ | 1,237,073 | $ | 177,814,217 | $ | – | $ | 179,051,290 |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
ALPS | Smith Total Return Bond Fund | ||||||||||||||||
Collateralized Mortgage Obligations | $ | – | $ | 123,237,525 | $ | – | $ | 123,237,525 | ||||||||
Commercial Mortgage-Backed Securities | – | 51,480,927 | – | 51,480,927 | ||||||||||||
Mortgage-Backed Securities | – | 50,189,069 | – | 50,189,069 | ||||||||||||
Corporate Bonds | – | 892,295,652 | – | 892,295,652 | ||||||||||||
Government Bonds | – | 208,229,535 | – | 208,229,535 | ||||||||||||
Municipal Bonds | – | 715,000 | – | 715,000 | ||||||||||||
Preferred Stock | 3,599,600 | – | – | 3,599,600 | ||||||||||||
Short Term Investments | 2,975,270 | – | – | 2,975,270 | ||||||||||||
Total | $ | 6,574,870 | $ | 1,326,147,708 | $ | – | $ | 1,332,722,578 |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
ALPS | Smith Credit Opportunities Fund | ||||||||||||||||
Corporate Bonds | $ | – | $ | 23,562,357 | $ | – | $ | 23,562,357 | ||||||||
Government Bonds | – | 2,710,419 | – | 2,710,419 | ||||||||||||
Preferred Stock | 459,420 | – | – | 459,420 | ||||||||||||
Short Term Investments | 263,967 | – | – | 263,967 | ||||||||||||
Total | $ | 723,387 | $ | 26,272,776 | $ | – | $ | 26,996,163 |
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Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
ALPS | Smith Balanced Opportunity Fund | ||||||||||||||||
Collateralized Mortgage Obligations | $ | – | $ | 1,294,393 | $ | – | $ | 1,294,393 | ||||||||
Common Stocks(a) | 7,353,418 | – | – | 7,353,418 | ||||||||||||
Mortgage-Backed Securities | – | 210,902 | – | 210,902 | ||||||||||||
Corporate Bonds | – | 2,280,922 | – | 2,280,922 | ||||||||||||
Government Bonds | – | 2,357,432 | – | 2,357,432 | ||||||||||||
Short Term Investments | 374,837 | – | – | 374,837 | ||||||||||||
Total | $ | 7,728,255 | $ | 6,143,649 | $ | – | $ | 13,871,904 |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
ALPS | Red Rocks Global Opportunity Fund | ||||||||||||||||
Closed-End Funds | $ | 6,219,202 | $ | 17,239,396 | $ | – | $ | 23,458,598 | ||||||||
Common Stocks | ||||||||||||||||
Communications | 9,534,913 | – | – | 9,534,913 | ||||||||||||
Consumer, Non-cyclical | 4,561,163 | 884,647 | – | 5,445,810 | ||||||||||||
Diversified | – | 1,476,126 | – | 1,476,126 | ||||||||||||
Financials | 14,232,283 | 15,412,831 | – | 29,645,114 | ||||||||||||
Industrials | 7,656,131 | 1,386,781 | – | 9,042,912 | ||||||||||||
Technology | 4,240,213 | – | – | 4,240,213 | ||||||||||||
Utilities | 2,380,843 | – | – | 2,380,843 | ||||||||||||
Short-Term Investments | 2,947,365 | – | – | 2,947,365 | ||||||||||||
Total | $ | 51,772,113 | $ | 36,399,781 | $ | – | $ | 88,171,894 |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
Clough China Fund | ||||||||||||||||
Common Stocks | ||||||||||||||||
Communications | $ | 3,441,830 | $ | 5,921,438 | $ | – | $ | 9,363,268 | ||||||||
Consumer Discretionary | 9,490,798 | 4,550,721 | – | 14,041,519 | ||||||||||||
Consumer Staples | – | 347,336 | – | 347,336 | ||||||||||||
Energy | – | 474,980 | – | 474,980 | ||||||||||||
Financials | – | 3,865,356 | – | 3,865,356 | ||||||||||||
Health Care | 1,064,000 | 1,178,007 | – | 2,242,007 | ||||||||||||
Materials | – | 1,174,633 | – | 1,174,633 | ||||||||||||
Real Estate | 298,302 | 1,780,546 | – | 2,078,848 | ||||||||||||
Technology | 2,056,761 | 1,093,209 | – | 3,149,970 | ||||||||||||
Short Term Investments | 869,747 | – | – | 869,747 | ||||||||||||
Total | $ | 17,221,438 | $ | 20,386,226 | $ | – | $ | 37,607,664 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets: | ||||||||||||||||
Total Return Swap Contracts | $ | – | $ | 932,952 | $ | – | $ | 932,952 | ||||||||
Liabilities: | ||||||||||||||||
Total Return Swap Contracts | – | (90,072 | ) | – | (90,072 | ) | ||||||||||
Total | $ | – | $ | 842,880 | $ | – | $ | 842,880 |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
RiverFront Asset Allocation Aggressive | ||||||||||||||||
Exchange Traded Funds | $ | 22,390,412 | $ | – | $ | – | $ | 22,390,412 | ||||||||
Short-Term Investments | 253,098 | – | – | 253,098 | ||||||||||||
Total | $ | 22,643,510 | $ | – | $ | – | $ | 22,643,510 |
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Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
RiverFront Asset Allocation Growth & Income | ||||||||||||||||
Exchange Traded Funds | $ | 58,104,514 | $ | – | $ | – | $ | 58,104,514 | ||||||||
Short-Term Investments | 1,433,308 | – | – | 1,433,308 | ||||||||||||
Total | $ | 59,537,822 | $ | – | $ | – | $ | 59,537,822 |
Investments in Securities at Value | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
RiverFront Asset Allocation Moderate | ||||||||||||||||
Exchange Traded Funds | $ | 45,764,830 | $ | – | $ | – | $ | 45,764,830 | ||||||||
Short-Term Investments | 1,223,124 | – | – | 1,223,124 | ||||||||||||
Total | $ | 46,987,954 | $ | – | $ | – | $ | 46,987,954 |
(a) | For detailed descriptions of country, sector and/or industry, see the accompanying Statement of Investments or Consolidated Statement of Investments. |
Fund and Class Expenses: Some expenses of the Trust can be directly attributed to a Fund or a specific share class of a Fund. Expenses which cannot be directly attributed are apportioned among all Funds in the Trust based on average net assets of each share class within a Fund.
Federal Income Taxes: The Funds comply with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”) applicable to regulated investment companies and intend to distribute substantially all of their net taxable income and net capital gains, if any, each year. The Funds are not subject to income taxes to the extent such distributions are made.
The Funds file U.S. federal, state, and local tax returns as required. The Funds’ tax returns are subject to examination by the relevant tax authorities until expiration of the applicable statute of limitations which is generally three years after the filing of the tax return, but may extend to four years in certain jurisdictions. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.
Distributions to Shareholders: Each Fund, except, RiverFront Asset Allocation Growth & Income, RiverFront Asset Allocation Moderate, ALPS | Smith Total Return Bond Fund, ALPS | Smith Short Duration Bond Fund, ALPS | Smith Balanced Opportunity Fund, and ALPS | Smith Credit Opportunities Fund, normally pays dividends and distributes capital gains, if any, on an annual basis. RiverFront Asset Allocation Growth & Income and RiverFront Asset Allocation Moderate normally pay dividends, if any, on a quarterly basis and distribute capital gains annually. ALPS | Smith Total Return Bond Fund, ALPS | Smith Short Duration Bond Fund, ALPS | Smith Balanced Opportunity Fund, and ALPS | Smith Credit Opportunities Fund declare and distribute dividends, if any, on a monthly basis and capital gains, if any, on at least an annual basis. Income dividend distributions are derived from interest, dividends, and other income a Fund receives from its investments, including distributions of short-term capital gains. Capital gain distributions are derived from gains realized when a Fund sells a security it has owned for more than a year or from long-term capital gain distributions from underlying investments. Each Fund may make additional distributions and dividends at other times if its portfolio manager or managers believe doing so may be necessary for the Fund to avoid or reduce taxes.
Commodity-Linked Notes: The ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund may invest in commodity-linked notes which are derivative instruments that have characteristics of a debt security and of a commodity-linked derivative. A commodity-linked note typically provides for interest payments and a principal payment at maturity linked to the price movement of the underlying commodity, commodity index or commodity futures or option contract. Commodity-linked notes may be principal protected, partially protected, or offer no principal protection. The value of these notes will rise and fall in response to changes in the underlying commodity or related index or investment. These notes are often leveraged, increasing the volatility of each note’s value relative to the change in the underlying linked index. Commodity index-linked investments may be more volatile and less liquid than the underlying index and their value may be affected by the performance of the commodities as well as other factors, including liquidity, quality, maturity and other economic variables. Commodity-linked notes are typically issued by a bank or other financial institution and are sometimes referred to as structured notes because the terms of the notes may be structured by the issuer and the purchaser of the notes to accommodate the specific investment requirements of the purchaser.
Exchange Traded Funds (ETFs): Each Fund may invest in shares of ETFs and other similar instruments if the investment manager chooses to adjust a Fund’s exposure to the general market or industry sectors and to manage a Fund’s risk exposure. ETFs differ from traditional index funds in that their shares are listed on a securities exchange and can be traded intraday. ETF shares are shares of exchange traded investment companies that are registered under the 1940 Act and hold a portfolio of common stocks designed to track the performance of a particular index. Limitations of the 1940 Act may prohibit a Fund from acquiring more than 3% of the outstanding shares of certain ETFs. Instruments that are similar to ETFs
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represent beneficial ownership interests in specific “baskets” of stocks of companies within a particular industry sector or group. These securities may also be exchange traded, but unlike ETFs, the issuers of these securities are not registered as investment companies.
The portfolio manager may decide to purchase or sell short ETF shares or options on ETF shares for the same reasons it would purchase or sell (and as an alternative to purchasing or selling) futures contracts – to obtain exposure to the stock market or a particular segment of the stock market, or to hedge a Fund’s portfolio against such exposures. Depending on the market, the holding period and other factors, the use of ETF shares and options thereon can be less costly than the use of index options or stock index futures. In addition, ETF shares and options thereon can typically be purchased in smaller amounts than are available for futures contracts and can offer exposure to market sectors and styles for which there is no suitable or liquid futures contract.
Investment Transactions and Investment Income: Investment transactions are accounted for on the date the investments are purchased or sold (trade date basis). Net realized gains and losses from investment transactions are reported on an identified cost basis. Interest income, which includes accretion of discounts and amortization of premiums, is accrued and recorded as earned. Dividend income is recognized on the ex-dividend date or for certain foreign securities, as soon as information is available to each Fund.
Foreign Securities: Each Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible reevaluation of currencies, the inability to repatriate foreign currency, less complete financial information about companies and possible future adverse political and economic developments.
Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. issuers.
Foreign Currency Translation: The books and records of the Funds are maintained in U.S. dollars. Investment valuations and other assets and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based upon current exchange rates. The portion of realized and unrealized gains or losses on investments due to fluctuations in foreign currency exchange rates is not separately disclosed and is included in realized and unrealized gains or losses on investments, when applicable.
Foreign Currency Spot Contracts: The Funds may enter into foreign currency spot contracts to facilitate transactions in foreign securities or to convert foreign currency receipts into U.S. dollars. A foreign currency spot contract is an agreement between two parties to buy and sell currencies at the current market rate, for settlement generally within two business days. The U.S. dollar value of the contracts is determined using current currency exchange rates supplied by a pricing service. The contract is marked-to-market daily for settlements beyond one day and any change in market value is recorded as an unrealized gain or loss. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value on the open and close date. Losses may arise from changes in the value of the foreign currency, or if the counterparties do not perform under the contract’s terms. The maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.
Real Estate Investment Trusts (“REITs”): The Funds may invest a portion of their assets in REITs and are subject to certain risks associated with direct investment in REITs. REITs may be affected by changes in the value of their underlying properties and by defaults by borrowers or tenants. REITs depend generally on their ability to generate cash flow to make distributions to shareowners, and certain REITs have self-liquidation provisions by which mortgages held may be paid in full and distributions of capital returns may be made at any time. In addition, the performance of a REIT may be affected by its failure to qualify for tax-free pass-through of income under the Code, or its failure to maintain exemption from registration under the 1940 Act. Distributions that the Fund receives from REITs can be classified as ordinary income, capital gain income or return of capital by the REITs that make these distributions to the Fund. However, it is not possible for the Fund to characterize distributions received from REITs during interim periods because the REIT issuers do not report their tax characterizations until subsequent to year end. During interim periods, the REIT distributions are accounted for as ordinary income until the re characterizations are made subsequent to year end.
Treasury Inflation Protected-Securities (“TIPS”): The Funds may invest in TIPS, including structured bonds in which the principal amount is adjusted daily to keep pace with inflation, as measured by the U.S. Consumer Pricing Index for Urban Consumers. The adjustments to principal due to inflation/deflation are reflected as increases/decreases to interest income with a corresponding adjustment to cost. Such adjustments may have a significant impact on a Fund’s distributions and may result in a return of capital to shareholders. The repayment of the original bond principal upon maturity is guaranteed by the full faith and credit of the U.S. Government.
Loan Participations and Assignments: Certain Funds may invest in loan participations and assignments. The Fund considers loan participations and assignments to be investments in debt securities. Loan participations typically will result in the Fund having a contractual relationship only with the lender, not with the borrower. The Fund will have the right to receive payments of principal, interest and any fees to which it is entitled only
182 | October 31, 2020
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October 31, 2020 |
from the lender selling the participation and only upon receipt by the lender of the payments from the borrower. Under a loan participation, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower, and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation. As a result, the Fund will assume the credit risk of both the borrower and the lender that is selling the participation. In the event of the insolvency of the lender selling a participation, the Fund may be treated as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower. When the Fund purchases assignments of loans from lenders, the Fund will acquire direct rights against the borrower on the loan, except that under certain circumstances such rights may be more limited than those held by the assigning lender.
Master Limited Partnerships: Certain Funds may invest in MLPs, which are publicly traded partnerships engaged in the transportation, storage and processing of minerals and natural resources. By confining their operations to these specific activities, their interests, or units, are able to trade on public securities exchanges exactly like the shares of a corporation, without entity level taxation. To qualify as a MLP and to not be taxed as a corporation, a partnership must receive at least 90% of its income from qualifying sources as set forth in Section 7704(d) of the Code. These qualifying sources include natural resource based activities such as the processing, transportation and storage of mineral or natural resources. MLPs generally have two classes of owners, the general partner and limited partners. The general partner of an MLP is typically owned by a major energy company, an investment fund, the direct management of the MLP, or is an entity owned by one or more of such parties. The general partner may be structured as a private or publicly traded corporation or other entity. The general partner typically controls the operations and management of the MLP through an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units. Limited partners typically own the remainder of the partnership, through ownership of common units, and have a limited role in the partnership’s operations and management. MLPs are typically structured such that common units and general partner interests have first priority to receive quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”). Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid. Once common and general partner interests have been paid, subordinated units receive distributions of up to the MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD is paid to both common and subordinated units and is distributed to both common and subordinated units generally on a pro rata basis. The general partner is also eligible to receive incentive distributions if the general partner operates the business in a manner which results in distributions paid per common unit surpassing specified target levels. As the general partner increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of the incremental cash distributions.
Interest Rate Risk: On July 27, 2017, the head of the U.K.'s Financial Conduct Authority announced desire to phase out the use of LIBOR by the end of 2021. At this time, there remains uncertainty regarding the future utilization of LIBOR and the nature of any replacement rate. The transition process away from LIBOR may lead to increased volatility and illiquidity in markets that currently rely on LIBOR to determine interest rates, and the eventual use of an alternative reference rate may adversely affect the Fund's performance. In addition, the usefulness of LIBOR may deteriorate in the period leading up to its discontinuation, which could adversely affect the liquidity or market value of securities that use LIBOR.
COVID-19 Risks. A recent outbreak of respiratory disease caused by a novel coronavirus was first detected in December 2019 and has now been detected internationally. This coronavirus has resulted in closing borders, enhanced health screenings, healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this coronavirus, and other epidemics and pandemics that may arise in the future, could affect the economies of many nations, individual companies, their securities (including equity and debt), and the market in general in ways that cannot necessarily be foreseen at the present time. In addition, the impact of infectious diseases in developing or emerging market countries may be greater due to less established health care systems. Health crises caused by the recent coronavirus outbreak may exacerbate other pre-existing political, social and economic risks in certain countries. The impact of the outbreak may be short term or may last for an extended period of time.
3. DERIVATIVE INSTRUMENTS
As a part of their investment strategy, the Funds are permitted to enter in various types of derivatives contracts. In doing so, the Funds employ strategies in differing combinations to permit them to increase, decrease, or change the level or types of exposure to market factors. Central to those strategies are features inherent in derivatives that make them more attractive for this purpose than equity or debt securities; they require little or no initial cash investment, they focus exposure on only certain selected risk factors, and they may not require the ultimate receipt or delivery of the underlying security (or securities) to the contract. This may allow the Funds to pursue their objectives more quickly and efficiently than if they were to make direct purchases or sales of securities capable of affecting a similar response to market factors.
Cash collateral is being pledged to cover derivative obligations of the Funds and cash collateral received from the counterparty, if any, is reported separately on the Statements of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Funds, if any, is noted in the Statements of Investments.
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October 31, 2020 |
Risk of Investing in Derivatives: The Funds’ use of derivatives can result in losses due to unanticipated changes in the market risk factors and the overall market. In instances where the Funds are using derivatives to decrease, or hedge, exposures to market risk factors for securities held by the Funds, there are also risks that those derivatives may not perform as expected resulting in losses for the combined or hedged positions.
Derivatives may have little or no initial cash investment relative to their market value exposure and therefore can produce significant gains or losses in excess of their cost. This use of embedded leverage allows the Fund to increase its market value exposure relative to its net assets and can substantially increase the volatility of the Funds’ performance.
Additional associated risks from investing in derivatives also exist and potentially could have significant effects on the valuation of the derivative and the Funds. Typically, the associated risks are not the risks that the Funds are attempting to increase or decrease exposure to, per their investment objectives, but are the additional risks from investing in derivatives.
Examples of these associated risks are liquidity risk, which is the risk that the Funds will not be able to sell or close out the derivative in a timely manner, and counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Funds. In addition, use of derivatives may increase or decrease exposure to the following risk factors:
Equity Risk: Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. Associated risks can be different for each type of derivative and are discussed by each derivative type in the notes that follow.
Commodity Risk: Exposure to the commodities markets may subject the Funds to greater volatility than investments in traditional securities. Prices of various commodities may also be affected by factors, such as drought, floods, weather, livestock disease, embargoes, tariffs and other regulatory developments, which are unpredictable. The prices of commodities can also fluctuate widely due to supply and demand disruptions in major producing or consuming regions.
Foreign Currency Risk: Currency trading involves significant risks, including market risk, interest rate risk, country risk, counterparty credit risk and short sale risk. Market risk results from the price movement of foreign currency values in response to shifting market supply and demand. Interest rate risk arises whenever a country changes its stated interest rate target associated with its currency. Country risk arises because virtually every country has interfered with international transactions in its currency.
Interest Rate Risk: Interest rate risk is the risk that fixed income securities will decline in value because of changes in interest rates. As nominal interest rates rise, the value of fixed income securities held by the Funds are likely to decrease. Securities with longer durations tend to be more sensitive to changes in interest rates, and are usually more volatile than securities.
Swap Contracts: Each Fund may enter into swap transactions for hedging purposes or to seek to increase total return. At the present time, the CoreCommodity Fund and Clough China Fund primarily enter into swap transactions for the purpose of increasing total return. Swap agreements may be executed in a multilateral or other trade facility program, such as a registered exchange (“centrally cleared swaps”) or may be privately negotiated in the over-the counter market. The duration of a swap agreement typically ranges from a few weeks to more than one year. In a centrally cleared swap, immediately following execution of the swap agreement, the swap agreement is novated to a central counterparty (the “CCP”) and the Fund’s counterparty on the swap agreement becomes the CCP. Risks may arise as a result of the failure of the counterparty to the swap contract to comply with the terms of the swap contract. The loss incurred by the failure of a counterparty is generally limited to the net payment to be received by the Funds and/or the termination value at the end of the contract. Therefore, the Funds consider the creditworthiness of each counterparty to a contract in evaluating potential credit risk. Although centrally cleared swaps typically present less counterparty risk than non-centrally cleared swaps, a Fund that has entered into centrally cleared swaps is subject to the risk of the failure of the CCP.
Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying reference asset or index. Entering into these agreements involves, to varying degrees, market risk, liquidity risk and elements of credit, legal and documentation risk that are not directly reflected in the amounts recognized in the Statements of Assets and Liabilities.
The Funds may pay or receive cash as collateral on these contracts which may be recorded as an asset and/or liability. The Funds must set aside liquid assets, or engage in other appropriate measures, to cover its obligations under these contracts. Swaps are marked to market daily using either pricing vendor quotations, counterparty prices or model prices and the change in value, if any, is recorded as an unrealized gain or loss. Upfront payments made and/or received by the Funds are recorded as an asset and/or liability and realized gains or losses are recognized ratably over the contract’s term/event, with the exception of forward starting interest rate swaps, whose realized gains or losses are recognized ratably from the effective start date. Periodic payments received or made on swap contracts are recorded as realized gains or losses. Gains or losses are realized upon termination of a swap contract and are recorded on the Statement of Operations.
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October 31, 2020 |
Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (coupons plus capital gains/losses) of an underlying instrument in exchange for fixed or floating rate interest payments. To the extent the total return of the instrument or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Fund will receive a payment from or make a payment to the counterparty. Credit default swaps are a type of swap agreement in which the protection “buyer” is generally obligated to pay the protection “seller” an upfront and/ or a periodic stream of payments over the term of the contract provided that no credit event, such as a default, on a reference obligation has occurred. Credit default swaps (“CDS”) are typically two-party financial contracts that transfer credit exposure between the two parties. Under a typical CDS, one party (the “seller”) receives pre-determined periodic payments from the other party (the “buyer”). The seller agrees to make compensating specific payments to the buyer if a negative credit event occurs, such as the bankruptcy or default by the issuer of the underlying debt instrument. Swap agreements held at October 31, 2020 are disclosed after the Statement of Investments.
The average notional amount of the swap positions held in the ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund for the fiscal year ended October 31, 2020 was $260,496,149. The average notional amount of the swap positions held in the Clough China Fund for the fiscal year ended October 31, 2020 was $4,641,508.
Futures: Each Fund may invest in futures contracts in accordance with their investment objectives. Each Fund does so for a variety of reasons including for cash management, hedging or non-hedging purposes in an attempt to achieve the Fund’s investment objective. A futures contract provides for the future sale by one party and purchase by another party of a specified quantity of the security or other financial instrument at a specified price and time. A futures contract on an index is an agreement pursuant to which two parties agree to take or make delivery of an amount of cash equal to the difference between the value of the index at the close of the last trading day of the contract and the price at which the index contract was originally written. Futures transactions may result in losses in excess of the amount invested in the futures contract. There can be no guarantee that there will be a correlation between price movements in the hedging vehicle and in the portfolio securities being hedged. An incorrect correlation could result in a loss on both the hedged securities in a Fund and the hedging vehicle so that the portfolio return might have been greater had hedging not been attempted. There can be no assurance that a liquid market will exist at a time when a Fund seeks to close out a futures contract or a futures option position. Lack of a liquid market for any reason may prevent a Fund from liquidating an unfavorable position, and the Fund would remain obligated to meet margin requirements until the position is closed. In addition, a Fund could be exposed to risk if the counterparties to the contracts are unable to meet the terms of their contracts. With exchange traded futures, there is minimal counterparty credit risk to the Funds since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
When a purchase or sale of a futures contract is made by a Fund, the Fund is required to deposit with its custodian (or broker, if legally permitted) a specified amount of liquid assets (“initial margin”). The margin required for a futures contract is set by the exchange on which the contract is traded and may be modified during the term of the contract. The initial margin is in the nature of a performance bond or good faith deposit on the futures contract that is returned to a Fund upon termination of the contract, assuming all contractual obligations have been satisfied. These amounts are included in Deposit with broker for futures contracts on the Statement of Assets and Liabilities. Each day a Fund may pay or receive cash, called “variation margin,” equal to the daily change in value of the futures contract. Such payments or receipts are recorded for financial statement purposes as unrealized gains or losses by a Fund. Variation margin does not represent a borrowing or loan by a Fund but is instead a settlement between a Fund and the broker of the amount one would owe the other if the futures contract expired. When the contract is closed, a Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
The average value of futures contracts held in the ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund for the fiscal year Ended October 31, 2020 was $189,461,791 for long futures and $89,057,839 for short futures.
Option Contracts: Each Fund may enter into options transactions for hedging purposes and for non-hedging purposes such as seeking to enhance return. Each Fund may write covered put and call options on any stocks or stock indices, currencies traded on domestic and foreign securities exchanges, or futures contracts on stock indices, interest rates and currencies traded on domestic and, to the extent permitted by the CFTC, foreign exchanges. A call option on an asset written by a Fund obligates the Fund to sell the specified asset to the holder (purchaser) at a stated price (the exercise price) if the option is exercised before a specified date (the expiration date). A put option on an asset written by a Fund obligates the Fund to buy the specified asset from the purchaser at the exercise price if the option is exercised before the expiration date. Premiums received when writing options are recorded as liabilities and are subsequently adjusted to the current value of the options written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options, which are either exercised or closed, are offset against the proceeds received or amount paid on the transaction to determine realized gains or losses which are recorded on the Statement of Operations.
185 | October 31, 2020
Notes to Financial Statements
October 31, 2020
Derivatives Instruments: The following tables disclose the amounts related to each Fund’s use of derivative instruments.
The effect of derivatives instruments on the Statement of Assets and Liabilities for the Fiscal Year Ended October 31, 2020:
Risk Exposure | Asset Location | Fair Value | Liability Location | Fair Value | ||||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund(a) | ||||||||||||
Commodity Contracts (Futures Contracts) | Unrealized appreciation on futures contracts(b) | $ | 6,387,106 | Unrealized depreciation on futures contracts(b) | $ | (12,022,469 | ) | |||||
Commodity Contracts (Total Return Swap Contracts) | Unrealized appreciation on total return swap contracts | 8 | Unrealized depreciation on total return swap contracts | (337 | ) | |||||||
Total | $ | 6,387,114 | $ | (12,022,806 | ) |
Risk Exposure | Asset Location | Fair Value | Liability Location | Fair Value | ||||||||
Clough China Fund | ||||||||||||
Equity Contracts (Total Return Swap Contracts) | Unrealized appreciation on total return swap contracts | $ | 932,952 | Unrealized depreciation on total return swap contracts | $ | (90,072 | ) | |||||
Total | $ | 932,952 | $ | (90,072 | ) |
(a) | The ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund consolidates the statements of assets and liabilities. |
(b) | Represents cumulative appreciation (depreciation) of futures contracts as reported in the Consolidated Statement of Investments. Only the current day's net variation margin is reported within the Consolidated Statement of Assets and Liabilities. |
The effect of derivatives instruments on the Statement of Operations for the Fiscal Year Ended October 31, 2020:
Risk Exposure | Statement of Operations Location | Realized Gain/(Loss) on Derivatives Recognized in Income | Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | |||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund(a) | ||||||||||
Equity and Commodity Contracts (Futures Contracts) | Net realized gain on futures contracts/ Net change in unrealized depreciation on futures contracts | $ | 12,368,843 | $ | (4,435,260 | ) | ||||
Commodity Contracts (Total Return Swap Contracts) | Net realized loss on total return swap contracts/Net change in unrealized depreciation on total return swap contracts | (33,513,859 | ) | (353 | ) | |||||
Total | $ | (21,145,016 | ) | $ | (4,435,613 | ) | ||||
Clough China Fund | ||||||||||
Equity Contracts (Total Return Swap Contracts) | Net realized gain on total return swap contracts/Net change in unrealized appreciation on total return swap contracts | $ | 969,878 | $ | 510,137 | |||||
Total | $ | 969,878 | $ | 510,137 |
(a) | The ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund consolidates the statements of operations. |
Certain derivative contracts are executed under either standardized netting agreements or, for exchange-traded derivatives, the relevant contracts for a particular exchange which contain enforceable netting provisions. A derivative netting arrangement creates an enforceable right of set-off that becomes effective, and affects the realization of settlement on individual assets, liabilities and collateral amounts, only following a specified event of default or early termination. Default events may include the failure to make payments or deliver securities timely, material adverse changes in financial condition or insolvency, the breach of minimum regulatory capital requirements, or loss of license, charter or other legal authorization necessary to perform under the contract.
186 | | October 31, 2020 |
Notes to Financial Statements
October 31, 2020
The following table presents financial instruments that are subject to enforceable netting arrangements or other similar agreements as of October 31, 2020:
Offsetting of Derivatives Asset
October 31, 2020
Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts Presented in the Statement of Assets and Liabilities | Financial Instruments | Cash Collateral Received(a) | Net Amount | |||||||||||||||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | ||||||||||||||||||||||||
Total Return Swap Contracts | $ | 8 | $ | – | $ | 8 | $ | – | $ | – | $ | 8 | ||||||||||||
Total | $ | 8 | $ | – | $ | 8 | $ | – | $ | – | $ | 8 | ||||||||||||
Clough China Fund | ||||||||||||||||||||||||
Total Return Swap Contracts | $ | 932,952 | $ | – | $ | 932,952 | $ | (90,072 | ) | $ | – | $ | 842,880 | |||||||||||
Total | $ | 932,952 | $ | – | $ | 932,952 | $ | (90,072 | ) | $ | – | $ | 842,880 |
Offsetting of Derivatives Liability
October 31, 2020
Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts Presented in the Statement of Assets and Liabilities | Financial Instruments(a) | Cash Collateral Pledged(a) | Net Amount | |||||||||||||||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | ||||||||||||||||||||||||
Total Return Swap Contracts | $ | 337 | $ | – | $ | 337 | $ | – | $ | (337 | ) | $ | – | |||||||||||
Total | $ | 337 | $ | – | $ | 337 | $ | – | $ | (337 | ) | $ | – | |||||||||||
Clough China Fund | ||||||||||||||||||||||||
Total Return Swap Contracts | $ | 90,072 | $ | – | $ | 90,072 | $ | (90,072 | ) | $ | – | $ | – | |||||||||||
Total | $ | 90,072 | $ | – | $ | 90,072 | $ | (90,072 | ) | $ | – | $ | – |
(a) | These amounts are limited to the derivative asset/liability balance and, accordingly, do not include excess collateral received/pledged. |
4. TAX BASIS INFORMATION
Tax Basis of Distributions to Shareholders: The character of distributions made during the year from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or realized gain were recorded by a Fund. The amounts and characteristics of tax basis distributions and composition of distributable earnings/ (accumulated losses) are finalized at fiscal year-end.
187 | | October 31, 2020 |
Notes to Financial Statements
October 31, 2020
The tax character of distributions paid by the Funds for the Fiscal Year Ended October 31, 2020 were as follows:
Fund | Ordinary Income | Long-Term Capital Gain | ||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | $ | 5,386,269 | $ | – | ||||
ALPS | Kotak India Growth Fund | – | 363,112 | ||||||
ALPS | Smith Short Duration Bond Fund | 1,810,242 | 7,397 | ||||||
ALPS | Smith Total Return Bond Fund | 22,579,307 | 8,170 | ||||||
ALPS | Smith Credit Opportunities Fund | 41,361 | – | ||||||
ALPS | Smith Balanced Opportunity Fund | 7,109 | – | ||||||
ALPS | Red Rocks Global Opportunity Fund | 14,647,308 | 11,394,100 | ||||||
Clough China Fund | 648,314 | 2,743,546 | ||||||
RiverFront Asset Allocation Moderate | 719,194 | – | ||||||
RiverFront Asset Allocation Aggressive | 668,531 | – | ||||||
RiverFront Asset Allocation Growth & Income | 1,183,441 | – |
The tax character of distributions paid by the Funds for the Fiscal Year Ended October 31, 2019 were as follows:
Fund | Ordinary Income | Long-Term Capital Gain | ||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | $ | 19,456,298 | $ | – | ||||
ALPS | Kotak India Growth Fund | – | 1,429,380 | ||||||
ALPS | Smith Short Duration Bond Fund | 835,570 | – | ||||||
ALPS | Smith Total Return Bond Fund | 3,232,935 | – | ||||||
ALPS | Red Rocks Global Opportunity Fund | 2,264,528 | 7,073,159 | ||||||
Clough China Fund | – | 2,916,100 | ||||||
RiverFront Asset Allocation Moderate | 1,521,039 | 9,462,099 | ||||||
RiverFront Asset Allocation Aggressive | 552,519 | 9,151,423 | ||||||
RiverFront Asset Allocation Growth & Income | 1,245,975 | 10,281,453 |
Components of Distributable Earnings on a Tax Basis: At October 31, 2020, permanent differences in book and tax accounting were reclassified. These differences had no effect on net assets and were primarily attributed to differences in the treatment of commodity related controlled foreign corporations, the differing tax treatment of foreign currency, investments in partnerships, Passive Foreign Investment Companies (“PFICs”) and certain other investments.
For the fiscal year ended October 31, 2020, the following reclassifications, which had no impact on results of operations or net assets, were recorded to reflect tax character:
Fund | Paid-in Capital | Distributable earnings | ||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | $ | (20,468,846 | ) | $ | 20,468,846 | |||
ALPS | Kotak India Growth Fund | (217,178 | ) | 217,178 | |||||
ALPS | Smith Credit Opportunities Fund | (1,098 | ) | 1,098 | |||||
ALPS | Smith Balanced Opportunity Fund | (601 | ) | 601 | |||||
ALPS | Red Rocks Global Opportunity Fund | (517,454 | ) | 517,454 | |||||
RiverFront Asset Allocation Moderate | 9 | (9 | ) | |||||
RiverFront Asset Allocation Growth & Income | 144 | (144 | ) |
Included in the amounts reclassified was a net operating loss offset to Paid-in Capital as follows:
Fund | Amount | |||
ALPS | Kotak India Growth Fund | $ | 217,175 | ||
ALPS | Red Rocks Global Opportunity Fund | 517,417 |
188 | | October 31, 2020 |
Notes to Financial Statements
October 31, 2020
As of October 31, 2020, the components of distributable earnings on a tax basis were as follows:
Undistributed net investment income | Accumulated net realized gain/(loss) on investments | Other cumulative effect of timing differences | Net unrealized appreciation/(depreciation) on investments | Total | ||||||||||||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | $ | 783,095 | $ | (95,550,783 | ) | $ | – | $ | (19,060,272 | ) | $ | (113,827,960 | ) | |||||||
ALPS | Kotak India Growth Fund | – | (11,497,372 | ) | – | 2,784,774 | (8,712,598 | ) | |||||||||||||
ALPS | Smith Short Duration Bond Fund | 1,540,445 | 35,295 | – | 2,066,463 | 3,642,203 | |||||||||||||||
ALPS | Smith Total Return Bond Fund | 21,904,876 | 1,991,099 | – | 27,252,229 | 51,148,204 | |||||||||||||||
ALPS | Smith Credit Opportunities Fund | 55,231 | – | – | (124,080 | ) | (68,849 | ) | |||||||||||||
ALPS | Smith Balanced Opportunity Fund | 1,817 | (3,355 | ) | – | (156,275 | ) | (157,813 | ) | ||||||||||||
ALPS | Red Rocks Global Opportunity Fund | – | 4,029,571 | – | 4,533,259 | 8,562,830 | |||||||||||||||
Clough China Fund | 1,139,685 | 649,416 | – | 11,783,015 | 13,572,116 | |||||||||||||||
RiverFront Asset Allocation Moderate | 10,915 | (1,116,975 | ) | – | 2,016,193 | 910,133 | ||||||||||||||
RiverFront Asset Allocation Aggressive | 223,722 | (3,061,797 | ) | – | 134,747 | (2,703,328 | ) | |||||||||||||
RiverFront Asset Allocation Growth & Income | 15,521 | (6,705,437 | ) | – | 2,621,953 | (4,067,963 | ) |
Capital loss carryovers used during the year ended October 31, 2020 for Riverfront Asset Allocation Moderate Fund, were $37,685.
Capital Losses: Under current law, capital losses maintain their character as short-term or long-term and are carried forward to the next tax year without expiration. As of October 31, 2020 the following amounts are available as carry forwards to the next tax year:
Capital losses deferred to next tax year were as follows:
Fund | Short-Term | Long-Term | ||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | $ | 41,170,843 | $ | 54,379,940 | ||||
ALPS | Kotak India Growth Fund | 11,497,372 | – | ||||||
ALPS | Smith Balanced Opportunity Fund | 3,355 | – | ||||||
RiverFront Asset Allocation Moderate* | 951,597 | 165,378 | ||||||
RiverFront Asset Allocation Aggressive | 1,248,412 | 1,813,385 | ||||||
RiverFront Asset Allocation Growth & Income* | 2,970,828 | 3,734,609 |
* | May be subject to §382 limitation resulting from mergers. |
Unrealized Appreciation and Depreciation on Investments: As of October 31, 2020, the costs of investments for federal income tax purposes and accumulated net unrealized appreciation/(depreciation) on investments were as follows:
Fund | Gross Appreciation (excess of value over tax cost) | Gross Depreciation (excess of tax cost over value) | Net Appreciation of Foreign Currency | Net Unrealized Appreciation/ (Depreciation) | Cost of Investments for Income Tax Purposes | |||||||||||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | $ | 27,421,404 | $ | (46,481,787 | ) | $ | 111 | $ | (19,060,272 | ) | $ | 470,249,924 | ||||||||
ALPS | Kotak India Growth Fund | 12,707,783 | (9,058,549 | ) | (864,460 | ) | 2,784,774 | 156,972,729 | |||||||||||||
ALPS | Smith Short Duration Bond Fund | 2,199,986 | (133,523 | ) | – | 2,066,463 | 176,984,827 | ||||||||||||||
ALPS | Smith Total Return Bond Fund | 32,989,454 | (5,737,225 | ) | – | 27,252,229 | 1,305,470,349 | ||||||||||||||
ALPS | Smith Credit Opportunities Fund | 86,187 | (210,267 | ) | – | (124,080 | ) | 27,069,343 | |||||||||||||
ALPS | Smith Balanced Opportunity Fund | 117,189 | (273,464 | ) | – | (156,275 | ) | 14,028,179 | |||||||||||||
ALPS | Red Rocks Global Opportunity Fund | 7,874,626 | (3,329,332 | ) | (12,035 | ) | 4,533,259 | 83,626,600 | |||||||||||||
Clough China Fund | 16,959,627 | (5,176,896 | ) | 284 | 11,783,015 | 26,667,813 | ||||||||||||||
RiverFront Asset Allocation Moderate | 2,433,312 | (95,040 | ) | (322,079 | ) | 2,016,193 | 44,649,682 | |||||||||||||
RiverFront Asset Allocation Aggressive | 746,422 | (611,677 | ) | 2 | 134,747 | 22,508,765 | ||||||||||||||
RiverFront Asset Allocation Growth & Income | 2,784,508 | (278,678 | ) | 116,123 | 2,621,953 | 57,031,992 |
189 | | October 31, 2020 |
Notes to Financial Statements
October 31, 2020
5. SECURITIES TRANSACTIONS
Purchases and sales of securities, excluding short-term securities and U.S. Government Obligations during the Fiscal Year Ended October 31, 2020 were as follows:
Fund | Purchases of Securities | Proceeds from Sales of Securities | ||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund(a) | $ | 101,214,954 | $ | 80,426,254 | ||||
ALPS | Kotak India Growth Fund(b) | 241,562,031 | 97,533,200 | ||||||
ALPS | Smith Short Duration Bond Fund | 307,288,281 | 228,289,248 | ||||||
ALPS | Smith Total Return Bond Fund | 1,667,667,826 | 997,109,762 | ||||||
ALPS | Smith Credit Opportunities Fund | 31,739,817 | 9,786,982 | ||||||
ALPS | Smith Balanced Opportunity Fund | 12,403,600 | 1,529,378 | ||||||
ALPS | Red Rocks Global Opportunity Fund | 54,928,498 | 142,618,773 | ||||||
Clough China Fund | 38,870,708 | 45,784,155 | ||||||
RiverFront Asset Allocation Moderate | 10,496,459 | 27,485,671 | ||||||
RiverFront Asset Allocation Aggressive | 5,969,607 | 17,619,637 | ||||||
RiverFront Asset Allocation Growth & Income | 21,814,461 | 42,361,800 |
Purchases and sales of U.S. Government Obligations during the fiscal year ended October 31, 2020 were as follows:
Fund | Purchases of Securities | Proceeds from Sales of Securities | ||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund(a) | $ | 321,768,019 | $ | 404,146,657 | ||||
ALPS | Smith Short Duration Bond Fund | 123,945,319 | 97,359,421 | ||||||
ALPS | Smith Total Return Bond Fund | 1,730,105,926 | 1,659,101,595 | ||||||
ALPS | Smith Balanced Opportunity Fund | 4,014,826 | 1,624,656 | ||||||
ALPS | Smith Credit Opportunities Fund | 4,685,203 | 1,960,520 |
(a) | Purchases and sales for ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund are consolidated and include the balances of CoreCommodity Management Cayman Commodity Fund, Ltd. (wholly owned subsidiary). |
(b) | Purchases and sales for ALPS | Kotak India Growth Fund are consolidated and include the balances of Kotak Mauritius Portfolio (wholly owned subsidiary). |
6. BENEFICIAL INTEREST TRANSACTIONS
Shares redeemed within 90 days of purchase for ALPS | Red Rocks Global Opportunity Fund, ALPS | Smith Balanced Opportunity Fund, ALPS | Smith Credit Opportunities Fund and 30 days of purchase for ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund, ALPS | Kotak India Growth Fund, and Clough China Fund, may incur a 2% short-term redemption fee deducted from the redemption amount. RiverFront Asset Allocation Growth & Income and RiverFront Asset Allocation Moderate shares do not incur redemption fees. Effective December 20, 2019, the ALPS | Smith Total Return Bond Fund and ALPS | Smith Short Duration Bond Fund do not incur redemption fees.
Effective December 1, 2017, Class A shares were renamed Investor Class shares for all Funds. Such shares will be offered without an initial sales charge or a contingent deferred sales charge. The RiverFront Asset Allocation Aggressive existing Investor shares were renamed Investor Class II shares.
190 | | October 31, 2020 |
Notes to Financial Statements
October 31, 2020
For the fiscal year ended October 31, 2020, the amounts listed below were retained by the Funds. These amounts are reflected in “Shares redeemed” in the Statements of Changes in Net Assets.
Redemption Fee Retained | ||||||||
Fund | For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | ||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund - Investor Class | $ | 3,872 | $ | 2,604 | ||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund - Class A | 38 | – | ||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund - Class C | – | 1,039 | ||||||
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund - Class I | 6,370 | 6,458 | ||||||
ALPS | Kotak India Growth Fund - Investor Class | 286,145 | 100 | ||||||
ALPS | Kotak India Growth Fund - Class C | – | 21 | ||||||
ALPS | Kotak India Growth Fund - Class I | 550 | – | ||||||
ALPS | Smith Short Duration Bond Fund - Class A | – | 6 | ||||||
ALPS | Smith Short Duration Bond Fund - Class I | 2,157 | 18,679 | ||||||
ALPS | Smith Total Return Bond Fund - Investor Class | 20 | 51 | ||||||
ALPS | Smith Total Return Bond Fund - Class A | 4,313 | 120 | ||||||
ALPS | Smith Total Return Bond Fund - Class I | 29,289 | 34,809 | ||||||
ALPS | Red Rocks Global Opportunity Fund - Investor Class | 12,646 | 1,691 | ||||||
ALPS | Red Rocks Global Opportunity Fund - Class A | 1,933 | – | ||||||
ALPS | Red Rocks Global Opportunity Fund - Class C | 367 | 73 | ||||||
ALPS | Red Rocks Global Opportunity Fund - Class I | 16,589 | 10,842 | ||||||
Clough China Fund - Investor Class | 133 | – | ||||||
Clough China Fund - Class C | 1 | – |
191 | October 31, 2020
Notes to Financial Statements
October 31, 2020
Transactions in shares of capital stock were as follows:
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | ||||||||
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | |||||||
Investor Class | ||||||||
Shares sold | 3,723,036 | 2,446,483 | ||||||
Dividends reinvested | 52,689 | 192,619 | ||||||
Shares redeemed | (1,557,348 | ) | (3,226,399 | ) | ||||
Net increase/(decrease) in shares outstanding | 2,218,377 | (587,297 | ) | |||||
Class A | ||||||||
Shares sold | 141,752 | 86,944 | ||||||
Dividends reinvested | 855 | 769 | ||||||
Shares redeemed | (48,458 | ) | (488 | ) | ||||
Net increase in shares outstanding | 94,149 | 87,225 | ||||||
Class C | ||||||||
Shares sold | 55,316 | 302,846 | ||||||
Dividends reinvested | 4,410 | 27,483 | ||||||
Shares redeemed | (704,431 | ) | (591,807 | ) | ||||
Net decrease in shares outstanding | (644,705 | ) | (261,478 | ) | ||||
Class I | ||||||||
Shares sold | 31,313,307 | 34,629,454 | ||||||
Dividends reinvested | 575,900 | 2,060,834 | ||||||
Shares redeemed | (34,485,123 | ) | (47,684,063 | ) | ||||
Net decrease in shares outstanding | (2,595,916 | ) | (10,993,775 | ) |
ALPS | Kotak India Growth Fund | ||||||||
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | |||||||
Investor Class | ||||||||
Shares sold | 1,469,294 | 90,140 | ||||||
Dividends reinvested | 3,593 | 28,015 | ||||||
Shares redeemed | (1,612,826 | ) | (260,791 | ) | ||||
Net decrease in shares outstanding | (139,939 | ) | (142,636 | ) | ||||
Class A | ||||||||
Shares sold | 1,521 | 6,622 | ||||||
Dividends reinvested | 88 | 49 | ||||||
Shares redeemed | (1,914 | ) | – | |||||
Net increase/(decrease) in shares outstanding | (305 | ) | 6,671 | |||||
Class C | ||||||||
Shares sold | 7,894 | 6,702 | ||||||
Dividends reinvested | 2,484 | 12,986 | ||||||
Shares redeemed | (30,928 | ) | (21,708 | ) | ||||
Net decrease in shares outstanding | (20,550 | ) | (2,020 | ) | ||||
Class I | ||||||||
Shares sold | 547,548 | 820,197 | ||||||
Dividends reinvested | 17,939 | 60,005 | ||||||
Shares redeemed | (527,423 | ) | (383,177 | ) | ||||
Net increase in shares outstanding | 38,064 | 497,025 | ||||||
Class II(a) | ||||||||
Shares sold | 13,368,943 | – | ||||||
Shares redeemed | (2,963,226 | ) | – | |||||
Net increase in shares outstanding | 10,405,717 | – |
(a) | Class II commenced operations on December 19, 2019. |
192 | October 31, 2020
Notes to Financial Statements
October 31, 2020
ALPS | Smith Short Duration Bond Fund | ||||||||
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | |||||||
Investor Class | ||||||||
Shares sold | 826,795 | 25,637 | ||||||
Dividends reinvested | 1,587 | 988 | ||||||
Shares redeemed | (22,188 | ) | (25,150 | ) | ||||
Net increase in shares outstanding | 806,194 | 1,475 | ||||||
Class A | ||||||||
Shares sold | 315,200 | 36,264 | ||||||
Dividends reinvested | 1,745 | 441 | ||||||
Shares redeemed | (14,094 | ) | (1,808 | ) | ||||
Net increase in shares outstanding | 302,851 | 34,897 | ||||||
Class C | ||||||||
Shares sold | 175,014 | 12,866 | ||||||
Dividends reinvested | 806 | 555 | ||||||
Shares redeemed | (17,601 | ) | (1,978 | ) | ||||
Net increase in shares outstanding | 158,219 | 11,433 | ||||||
Class I | ||||||||
Shares sold | 15,201,725 | 4,134,450 | ||||||
Dividends reinvested | 114,292 | 43,420 | ||||||
Shares redeemed | (3,995,650 | ) | (1,159,658 | ) | ||||
Net increase in shares outstanding | 11,320,367 | 3,018,212 |
ALPS | Smith Total Return Bond Fund | ||||||||
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | |||||||
Investor Class | ||||||||
Shares sold | 851,183 | 703,752 | ||||||
Dividends reinvested | 10,771 | 5,233 | ||||||
Shares redeemed | (354,961 | ) | (368,244 | ) | ||||
Net increase in shares outstanding | 506,993 | 340,741 | ||||||
Class A | ||||||||
Shares sold | 680,483 | 823,752 | ||||||
Dividends reinvested | 21,602 | 3,772 | ||||||
Shares redeemed | (114,005 | ) | (119,436 | ) | ||||
Net increase in shares outstanding | 588,080 | 708,088 | ||||||
Class C | ||||||||
Shares sold | 470,809 | 155,015 | ||||||
Dividends reinvested | 4,985 | 517 | ||||||
Shares redeemed | (64,416 | ) | (10,168 | ) | ||||
Net increase in shares outstanding | 411,378 | 145,364 | ||||||
Class I | ||||||||
Shares sold | 98,260,437 | 33,518,918 | ||||||
Dividends reinvested | 1,340,528 | 220,509 | ||||||
Shares redeemed | (16,682,072 | ) | (1,476,356 | ) | ||||
Net increase in shares outstanding | 82,918,893 | 32,263,071 |
193 | October 31, 2020
Notes to Financial Statements
October 31, 2020
ALPS | Smith Credit Opportunities Fund | ||||
For the Period September 16, 2020 (Commencement) to October 31, 2020 | ||||
Investor Class | ||||
Shares sold | 70,203 | |||
Shares redeemed | (17 | ) | ||
Net increase in shares outstanding | 70,186 | |||
Class A | ||||
Shares sold | 100,000 | |||
Net increase in shares outstanding | 100,000 | |||
Class C | ||||
Shares sold | 50,000 | |||
Net increase in shares outstanding | 50,000 | |||
Class I | ||||
Shares sold | 2,545,943 | |||
Dividends reinvested | 128 | |||
Shares redeemed | (32,551 | ) | ||
Net increase in shares outstanding | 2,513,520 |
ALPS | Smith Balanced Opportunity Fund | ||||
For the Period September 16, 2020 (Commencement) to October 31, 2020 | ||||
Investor Class | ||||
Shares sold | 60,855 | |||
Net increase in shares outstanding | 60,855 | |||
Class A | ||||
Shares sold | 100,000 | |||
Net increase in shares outstanding | 100,000 | |||
Class C | ||||
Shares sold | 50,000 | |||
Net increase in shares outstanding | 50,000 | |||
Class I | ||||
Shares sold | 1,243,550 | |||
Dividends reinvested | 70 | |||
Net increase in shares outstanding | 1,243,620 |
194 | October 31, 2020
Notes to Financial Statements
October 31, 2020
ALPS | Red Rocks Global Opportunity Fund | ||||||||
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | |||||||
Investor Class | ||||||||
Shares sold | 746,089 | 890,646 | ||||||
Dividends reinvested | 396,106 | 178,286 | ||||||
Shares redeemed | (1,986,245 | ) | (3,085,473 | ) | ||||
Net decrease in shares outstanding | (844,050 | ) | (2,016,541 | ) | ||||
Class A | ||||||||
Shares sold | 502,233 | 179,366 | ||||||
Dividends reinvested | 11,532 | 186 | ||||||
Shares redeemed | (222,154 | ) | (77,914 | ) | ||||
Net increase in shares outstanding | 291,611 | 101,638 | ||||||
Class C | ||||||||
Shares sold | 100,932 | 125,206 | ||||||
Dividends reinvested | 277,858 | 90,579 | ||||||
Shares redeemed | (1,107,493 | ) | (914,084 | ) | ||||
Net decrease in shares outstanding | (728,703 | ) | (698,299 | ) | ||||
Class I | ||||||||
Shares sold | 3,948,906 | 6,594,931 | ||||||
Dividends reinvested | 2,205,348 | 881,354 | ||||||
Shares redeemed | (15,717,303 | ) | (14,608,996 | ) | ||||
Net decrease in shares outstanding | (9,563,049 | ) | (7,132,711 | ) | ||||
Class R | ||||||||
Shares sold | 172,726 | 210,457 | ||||||
Dividends reinvested | 169,759 | 45,988 | ||||||
Shares redeemed | (240,276 | ) | (174,673 | ) | ||||
Net increase in shares outstanding | 102,209 | 81,772 |
Clough China Fund | ||||||||
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | |||||||
Investor Class | ||||||||
Shares sold | 26,030 | 20,658 | ||||||
Dividends reinvested | 27,169 | 27,938 | ||||||
Shares redeemed | (136,999 | ) | (97,477 | ) | ||||
Net decrease in shares outstanding | (83,800 | ) | (48,881 | ) | ||||
Class A | ||||||||
Shares sold | 28,884 | 72,214 | ||||||
Dividends reinvested | 3,571 | 29 | ||||||
Shares redeemed | (17,923 | ) | (5,585 | ) | ||||
Net increase in shares outstanding | 14,532 | 66,658 | ||||||
Class C | ||||||||
Shares sold | 2,134 | 4,859 | ||||||
Dividends reinvested | 5,599 | 10,101 | ||||||
Shares redeemed | (60,290 | ) | (124,862 | ) | ||||
Net decrease in shares outstanding | (52,557 | ) | (109,902 | ) | ||||
Class I | ||||||||
Shares sold | 45,424 | 26,978 | ||||||
Dividends reinvested | 91,364 | 78,396 | ||||||
Shares redeemed | (138,066 | ) | (66,184 | ) | ||||
Net increase/(decrease) in shares outstanding | (1,278 | ) | 39,190 |
195 | October 31, 2020
Notes to Financial Statements
October 31, 2020
RiverFront Asset Allocation Aggressive | ||||||||
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | |||||||
Investor Class | ||||||||
Shares sold | 2,440 | 125,608 | ||||||
Dividends reinvested | 6,342 | 94,006 | ||||||
Shares redeemed | (182,440 | ) | (189,124 | ) | ||||
Net increase/(decrease) in shares outstanding | (173,658 | ) | 30,490 | |||||
Class A | ||||||||
Shares sold | 38,409 | 82,909 | ||||||
Dividends reinvested | 1,412 | 200 | ||||||
Shares redeemed | (17,567 | ) | (17,859 | ) | ||||
Net increase in shares outstanding | 22,254 | 65,250 | ||||||
Class C | ||||||||
Shares sold | 10,908 | 40,125 | ||||||
Dividends reinvested | 7,859 | 190,251 | ||||||
Shares redeemed | (157,814 | ) | (407,276 | ) | ||||
Net decrease in shares outstanding | (139,047 | ) | (176,900 | ) | ||||
Class I | ||||||||
Shares sold | 42,140 | 149,895 | ||||||
Dividends reinvested | 8,074 | 187,996 | ||||||
Shares redeemed | (389,251 | ) | (603,425 | ) | ||||
Net decrease in shares outstanding | (339,037 | ) | (265,534 | ) | ||||
Investor II | ||||||||
Shares sold | 2,707 | 7,818 | ||||||
Dividends reinvested | 1,484 | 36,176 | ||||||
Shares redeemed | (47,500 | ) | (75,492 | ) | ||||
Net decrease in shares outstanding | (43,309 | ) | (31,498 | ) | ||||
Class L | ||||||||
Shares sold | 113,431 | 179,272 | ||||||
Dividends reinvested | 29,157 | 415,449 | ||||||
Shares redeemed | (522,923 | ) | (381,451 | ) | ||||
Net increase/(decrease) in shares outstanding | (380,335 | ) | 213,270 |
196 | October 31, 2020
Notes to Financial Statements
October 31, 2020
RiverFront Asset Allocation Growth & Income | ||||||||
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | |||||||
Investor Class | ||||||||
Shares sold | 10,492 | 17,283 | ||||||
Dividends reinvested | 11,414 | 120,109 | ||||||
Shares redeemed | (184,808 | ) | (351,316 | ) | ||||
Acquisition (Note 10) | – | 273,339 | ||||||
Net increase/(decrease) in shares outstanding | (162,902 | ) | 59,415 | |||||
Class A | ||||||||
Shares sold | 159,284 | 313,306 | ||||||
Dividends reinvested | 5,987 | 2,838 | ||||||
Shares redeemed | (105,466 | ) | (73,986 | ) | ||||
Acquisition (Note 10) | – | 76,643 | ||||||
Net increase in shares outstanding | 59,805 | 318,801 | ||||||
Class C | ||||||||
Shares sold | 69,052 | 82,129 | ||||||
Dividends reinvested | 19,111 | 292,273 | ||||||
Shares redeemed | (595,631 | ) | (950,068 | ) | ||||
Acquisition (Note 10) | – | 500,915 | ||||||
Net decrease in shares outstanding | (507,468 | ) | (74,751 | ) | ||||
Class I | ||||||||
Shares sold | 356,030 | 638,382 | ||||||
Dividends reinvested | 66,670 | 625,708 | ||||||
Shares redeemed | (1,640,532 | ) | (1,866,300 | ) | ||||
Acquisition (Note 10) | – | 861,187 | ||||||
Net increase/(decrease) in shares outstanding | (1,217,832 | ) | 258,977 |
197 | October 31, 2020
Notes to Financial Statements
October 31, 2020
RiverFront Asset Allocation Moderate | ||||||||
For the Year Ended October 31, 2020 | For the Year Ended October 31, 2019 | |||||||
Investor Class | ||||||||
Shares sold | 15,746 | 1,837 | ||||||
Dividends reinvested | 6,563 | 119,729 | ||||||
Shares redeemed | (145,967 | ) | (357,459 | ) | ||||
Acquisition (Note 10) | – | 14,598 | ||||||
Net decrease in shares outstanding | (123,658 | ) | (221,295 | ) | ||||
Class A | ||||||||
Shares sold | 351,122 | 711,679 | ||||||
Dividends reinvested | 9,942 | 6,082 | ||||||
Shares redeemed | (196,595 | ) | (180,214 | ) | ||||
Acquisition (Note 10) | – | 29,193 | ||||||
Net increase in shares outstanding | 164,469 | 566,740 | ||||||
Class C | ||||||||
Shares sold | 44,622 | 116,728 | ||||||
Dividends reinvested | 16,302 | 577,863 | ||||||
Shares redeemed | (1,083,506 | ) | (2,143,904 | ) | ||||
Acquisition (Note 10) | – | 472,697 | ||||||
Net decrease in shares outstanding | (1,022,582 | ) | (976,616 | ) | ||||
Class I | ||||||||
Shares sold | 254,684 | 256,077 | ||||||
Dividends reinvested | 36,154 | 406,794 | ||||||
Shares redeemed | (920,184 | ) | (951,196 | ) | ||||
Acquisition (Note 10) | – | 282,639 | ||||||
Net decrease in shares outstanding | (629,346 | ) | (5,686 | ) |
198 | October 31, 2020
Notes to Financial Statements
October 31, 2020
7. AFFILIATED COMPANIES
Funds may invest in certain securities that are considered securities issued by affiliated companies. As defined by the Investment Company Act of 1940, an affiliated person, including an affiliated company, is one in which a Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Fund. The purchases, sales, dividend income, realized gains or losses, change in unrealized gains or losses, shares and value of investments in affiliated companies for the year ended October 31, 2020 were as follows:
RiverFront Asset Allocation Aggressive | Market Value as of October 31, 2019 | Purchases | Sales | Market Value as of October 31, 2020 | Share Balance as of October 31, 2020 | Dividends | Change in Unrealized Gain (Loss) | Realized Gain/Loss | ||||||||||||||||||||||||
First Trust RiverFront Dynamic Asia Pacific ETF | $ | 1,811,145 | $ | 134,205 | $ | (1,029,341 | ) | $ | 783,725 | 15,772 | $ | 32.988 | $ | 191,029 | $ | (323,313 | ) | |||||||||||||||
First Trust RiverFront Dynamic Developed International ETF | 7,983,054 | – | (3,947,474 | ) | 3,394,461 | 62,181 | 101,843 | 3,775 | (644,894 | ) | ||||||||||||||||||||||
First Trust RiverFront Dynamic Emerging Markets ETF | 3,061,672 | 1,042,382 | (1,266,592 | ) | 2,753,585 | 45,089 | 103,882 | 55,691 | (143,940 | )* | ||||||||||||||||||||||
First Trust RiverFront Dynamic Europe ETF | 2,155,285 | 607,444 | (1,318,276 | ) | 1,451,594 | 26,092 | 33,568 | 172,104 | (164,963 | ) | ||||||||||||||||||||||
RiverFront Dynamic US Dividend Advantage ETF | 5,518,661 | 3,853,956 | (2,620,594 | ) | 7,066,248 | 210,946 | 120,104 | 390,467 | (76,242 | ) | ||||||||||||||||||||||
RiverFront Dynamic US Flex-Cap ETF | 14,520,890 | – | (7,106,189 | ) | 6,940,799 | 203,304 | 138,895 | 29,379 | (503,281 | ) | ||||||||||||||||||||||
RiverFront Dynamic Core Income ETF | – | 331,620 | (331,171 | ) | – | – | 1,031 | – | (449 | ) | ||||||||||||||||||||||
35,050,707 | 5,969,607 | (17,619,637 | ) | 22,390,412 | 532,311 | 842,445 | (1,857,082 | ) |
RiverFront Asset Allocation Growth & Income | Market Value as of October 31, 2019 | Purchases | Sales | Market Value as of October 31, 2020 | Share Balance as of October 31, 2020 | Dividends | Change in Unrealized Gain (Loss) | Realized Gain/Loss | ||||||||||||||||||||||||
RiverFront Dynamic Core Income ETF | $ | 15,798,220 | $ | 5,506,464 | $ | (8,292,785 | ) | $ | 13,323,893 | 512,556 | $ | 301,203 | $ | 247,131 | $ | 64,863 | ||||||||||||||||
RiverFront Dynamic Unconstrained Income ETF | 1,571,631 | 92,896 | (523,874 | ) | 1,120,785 | 44,608 | 67,656 | (9,245 | ) | (21,074 | )* | |||||||||||||||||||||
Riverfront Strategic Income Fund | 3,468,620 | 1,257,064 | (2,804,809 | ) | 1,752,818 | 71,427 | 76,777 | (82,102 | ) | (85,955 | ) | |||||||||||||||||||||
First Trust RiverFront Dynamic Developed International ETF | 11,891,781 | 4,298,877 | (6,554,961 | ) | 9,191,264 | 168,369 | 192,901 | 643,106 | (1,087,539 | ) | ||||||||||||||||||||||
First Trust RiverFront Dynamic Emerging Markets ETF | 6,012,392 | 1,003,078 | (1,843,657 | ) | 5,062,398 | 82,895 | 195,369 | 8,298 | (117,713 | ) | ||||||||||||||||||||||
RiverFront Dynamic US Dividend Advantage ETF | 18,147,419 | 6,907,143 | (5,498,582 | ) | 20,058,777 | 598,807 | 351,138 | 597,940 | (95,143 | ) | ||||||||||||||||||||||
RiverFront Dynamic US Flex-Cap ETF | 19,189,665 | 2,748,939 | (12,999,207 | ) | 7,594,579 | 222,454 | 180,811 | 128,065 | (1,472,210 | )* | ||||||||||||||||||||||
First Trust RiverFront Dynamic Asia Pacific ETF | 827,482 | – | (722,547 | ) | – | – | 10,654 | 109,629 | (214,564 | ) | ||||||||||||||||||||||
First Trust RiverFront Dynamic Europe ETF | 3,430,593 | – | (3,121,377 | ) | – | – | 23,032 | 207,534 | (516,750 | ) | ||||||||||||||||||||||
80,337,803 | 21,814,461 | (42,361,799 | ) | 58,104,514 | 1,399,541 | 1,850,356 | (3,546,085 | ) |
199 | October 31, 2020
Notes to Financial Statements
October 31, 2020
RiverFront Asset Allocation Moderate | Market Value as of October 31, 2019 | Purchases | Sales | Market Value as of October 31, 2020 | Share Balance as of October 31, 2020 | Dividends | Change in Unrealized Gain (Loss) | Realized Gain/Loss | ||||||||||||||||||||||||
RiverFront Dynamic Core Income ETF | $ | 25,091,122 | $ | 3,287,940 | $ | (9,430,223 | ) | $ | 19,601,582 | 754,052 | $ | 469,382 | $ | 200,740 | $ | 452,003 | ||||||||||||||||
RiverFront Dynamic Unconstrained Income ETF | 1,207,998 | 41,617 | (381,202 | ) | 858,377 | 34,164 | 45,943 | (6,370 | ) | (4,719 | )* | |||||||||||||||||||||
Riverfront Strategic Income Fund | 2,552,574 | 1,068,435 | (2,112,519 | ) | 1,394,780 | 56,837 | 58,870 | (59,153 | ) | (54,557 | ) | |||||||||||||||||||||
First Trust RiverFront Dynamic Developed International ETF | 3,128,156 | 931,870 | (1,366,895 | ) | 2,499,730 | 45,791 | 55,529 | (36,515 | ) | (156,886 | )* | |||||||||||||||||||||
RiverFront Dynamic US Dividend Advantage ETF | 19,202,692 | 5,166,597 | (8,527,776 | ) | 16,246,515 | 485,001 | 320,868 | 335,870 | 69,132 | |||||||||||||||||||||||
RiverFront Dynamic US Flex-Cap ETF | 11,218,993 | – | (5,667,057 | ) | 5,163,846 | 151,255 | 106,815 | 19,320 | (407,410 | ) | ||||||||||||||||||||||
62,401,535 | 10,496,459 | (27,485,672 | ) | 45,764,830 | 1,057,407 | 453,892 | (102,437 | ) |
* | Differences due to book and tax differences |
8. MANAGEMENT AND RELATED-PARTY TRANSACTIONS
ALPS Advisors, Inc. (the “AAI”) acts as the Funds’ investment adviser. AAI is an indirect wholly owned subsidiary of DST Systems, Inc. (“DST”). DST is a wholly-owned subsidiary of SS&C Technologies Holdings, Inc. (“SS&C”), a publicly traded company listed on the NASDAQ Global Select Market.
AAI has delegated daily management of the Funds listed below to the corresponding Sub-Advisor(s) listed in the table below. Each Sub-Advisor manages the investments of the Fund in accordance with its investment objective, policies and limitations and investment guidelines established jointly by AAI and the Board.
Fund | Sub-Advisor(s) |
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | CoreCommodity Management, LLC |
ALPS | Kotak India Growth Fund | Kotak Mahindra Asset Management (Singapore) Pte. Ltd |
ALPS | Smith Short Duration Bond Fund | Smith Capital Investors, LLC |
ALPS | Smith Total Return Bond Fund | Smith Capital Investors, LLC |
ALPS | Smith Credit Opportunities Fund | Smith Capital Investors, LLC |
ALPS | Smith Balanced Opportunity Bond Fund | Smith Capital Investors, LLC |
ALPS | Red Rocks Global Opportunity Fund | Red Rocks Capital, LLC(a) |
Clough China Fund | Clough Capital Partners, LP |
RiverFront Asset Allocation Aggressive | RiverFront Investment Group, LLC |
RiverFront Asset Allocation Growth & Income | RiverFront Investment Group, LLC |
RiverFront Asset Allocation Moderate | RiverFront Investment Group, LLC |
(a) | Red Rocks Capital, LLC is a subsidiary of ALPS Advisors, Inc. |
200 | October 31, 2020
Notes to Financial Statements
October 31, 2020
Pursuant to the Investment Advisory Agreement (the “Advisory Agreement”), the Funds listed below pay AAI an annual management fee which is based on each Fund’s average daily net assets. The management fee is paid on a monthly basis. The following table reflects the Funds’ contractual management fee rates (expressed as an annual rate).
Fund | Contractual Management Fee |
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | 0.85% |
ALPS | Kotak India Growth Fund | 0.65%(a) |
ALPS | Smith Short Duration Bond Fund | 0.37% |
ALPS | Smith Total Return Bond Fund | 0.55% |
ALPS | Smith Credit Opportunities Fund | 0.75% |
ALPS | Smith Balanced Opportunity Bond Fund | 0.70% |
ALPS | Red Rocks Global Opportunity Fund | 0.85% |
Clough China Fund | 1.00%(b) |
(a) | Effective December 2, 2019, the contractual management fee is 0.65% Prior to December 2, 20219, the contractual management fee was 1.25%. |
(b) | Effective August 18, 2020, the contractual management fee is 1.00% Prior to August 18, 2020, the contractual management fee was 1.35% |
Pursuant to the Administrative Services Agreement, the Riverfront Funds listed below pay an annual unitary administrative fee which is based on each Fund’s average daily net assets. The unitary administrative fee is paid on a monthly basis. The following table reflects the Funds’ contractual unitary administrative fee rates (expressed as an annual rate).
Fund | Contractual Unitary Fee |
RiverFront Asset Allocation Aggressive | 0.25% |
RiverFront Asset Allocation Growth & Income | 0.25% |
RiverFront Asset Allocation Moderate | 0.25% |
Pursuant to an Investment Sub-advisory Agreement, AAI pays the Sub-Advisors of the Funds listed below an annual sub-advisory management fee which is based on each Fund’s average daily assets. AAI is required to pay all fees due to each Sub-Advisor out of the management fee AAI receives from each Fund listed below. The following table reflects the Funds’ contractual sub-advisory fee rates.
Fund | Average Daily Net Assets of the Fund | Contractual Sub-Advisory Fee |
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | All Asset Levels | 0.75% |
ALPS | Kotak India Growth Fund | All Asset Levels | 0.56%(a) |
ALPS | Smith Short Duration Bond Fund | All Asset Levels | 0.29% |
ALPS | Smith Total Return Bond Fund | All Asset Levels | 0.42% |
ALPS | Smith Credit Opportunities Fund | All Asset Levels | 0.50% |
ALPS | Smith Balanced Opportunity Bond Fund | All Asset Levels | 0.37% |
ALPS | Red Rocks Global Opportunity Fund | All Asset Levels | 0.57% |
Clough China Fund | All Asset Levels | 0.67%(b) |
(a) | Effective December 2, 2019, the contractual Sub-Advisory fee is 0.56%. Prior to December 2, 2019, the contractual Sub-Advisory fee was 1.15% for the first $50 million and 1.05% for over $50 million. |
(b) | Effective August 18, 2020 the contractual Sub-Advisory fee is 0.67%. Prior to August 18, 2020, the contractual Sub-Advisory fee was 0.90% |
201 | October 31, 2020
Notes to Financial Statements
October 31, 2020
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund
AAI and CoreCommodity Management LLC have contractually agreed to limit the amount of the Fund’s total annual expenses, exclusive of distribution and service (12b-1) fees, shareholder services fees, acquired fund fees and expenses, brokerage commissions, interest expense, taxes and extraordinary expenses that exceed the following annual rates below.
ALPS | Kotak India Growth Fund
Prior to April 1, 2017, AAI and Kotak Mahindra (UK) Limited have contractually agreed to limit the amount of the Fund’s total annual expenses, exclusive of distribution and service (12b-1) fees, shareholder services fees, acquired fund fees and expenses, brokerage expenses, interest expenses, taxes and extraordinary expenses that exceed the following annual rates below. Effective April 1, 2017, Kotak entered into a Novation Agreement with the Fund, AAI and Kotak Mahindra Asset Management (Singapore) Pte. Ltd. (“KMAMS”), another wholly owned subsidiary of Kotak Mahindra Bank Limited, whereby KMAMS will assume all of Kotak’s rights and obligations under the current Sub-Advisory Agreement.
ALPS | Smith Short Duration Bond Fund
AAI and Smith Capital Investors, LLC have agreed contractually to limit the amount of the Fund’s total annual expenses, exclusive of distribution and service (12b-1) fees, shareholder service fees, acquired fund fees and expenses, brokerage expenses, interest expenses, taxes and extraordinary expenses that exceed the following annual rates below.
ALPS | Smith Total Return Bond Fund
AAI and Smith Capital Investors, LLC have agreed contractually to limit the amount of the Fund’s total annual expenses, exclusive of distribution and service (12b-1) fees, shareholder service fees, acquired fund fees and expenses, brokerage expenses, interest expenses, taxes and extraordinary expenses that exceed the following annual rates below.
ALPS | Smith Credit Opportunities Fund
AAI and Smith Capital Investors, LLC have agreed contractually to limit the amount of the Fund’s total annual expenses, exclusive of distribution and service (12b-1) fees, shareholder service fees, acquired fund fees and expenses, brokerage expenses, interest expenses, taxes and extraordinary expenses that exceed the following annual rates below.
ALPS | Smith Balanced Opportunity Bond Fund
AAI and Smith Capital Investors, LLC have agreed contractually to limit the amount of the Fund’s total annual expenses, exclusive of distribution and service (12b-1) fees, shareholder service fees, acquired fund fees and expenses, brokerage expenses, interest expenses, taxes and extraordinary expenses that exceed the following annual rates below.
ALPS | Red Rocks Global Opportunity Fund
AAI and Red Rocks Capital LLC have contractually agreed to limit the amount of the Fund’s total annual expenses, exclusive of distribution and service (12b-1) fees, acquired fund fees and expenses, shareholder service fees, brokerage expenses, interest expense, taxes and extraordinary expenses that exceed the following annual rates below.
Clough China Fund
AAI has contractually agreed to limit the amount of the Fund’s total annual expenses, exclusive of acquired fund fees and expenses, interest, taxes, brokerage costs and commissions, dividend and interest expense on short sales, litigation, indemnification and extraordinary expenses as determined under generally accepted accounting principles that exceed the following annual rates below.
202 | October 31, 2020
Notes to Financial Statements |
October 31, 2020 |
These agreements are reevaluated on an annual basis. Expense limitation ratios from the current agreements are listed below. Fees waived or reimbursed for the Fiscal Year Ended October 31, 2020 are disclosed on the Statement of Operations or Consolidated Statement of Operations.
Fund* | Investor Class | Class A | Class C | Class I | Class II | Class R |
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund | 1.05% | 1.05% | 1.05% | 1.15% | N/A | N/A |
ALPS | Kotak India Growth Fund | 1.00%(a) | 1.00%(a) | 1.00%(a) | 1.00%(a) | 0.75% | N/A |
ALPS | Smith Short Duration Bond Fund | 0.49% | 0.49% | 0.49% | 0.49% | N/A | N/A |
ALPS | Smith Total Return Bond Fund | 0.67% | 0.67% | 0.67% | 0.67% | N/A | N/A |
ALPS | Smith Credit Opportunities Fund | 0.90% | 0.90% | 0.90% | 0.90% | N/A | N/A |
ALPS | Smith Balanced Opportunity Bond Fund | 0.85% | 0.85% | 0.85% | 0.85% | N/A | N/A |
ALPS | Red Rocks Global Opportunity Fund | 1.25% | 1.25% | 1.25% | 1.25% | N/A | 1.25% |
Clough China Fund(b) | 1.60% | 1.60% | 2.35% | 1.35% | N/A | N/A |
* | See each Fund’s Performance Update section for Expense Limitation agreement expiration dates |
(a) | Effective December 2, 2019, the expense limitation changed from 1.60% to 1.00%, ecluding, among other fees and expenses, 12b-1 fees and shareholder service fees. |
(b) | Effecive August 18, 2020, the Clough China Fund changed their expense limitation ratios. Prior to August 18, 2020, Clough China’s expense limitation ratios for Investor Class, Class A, Class C, and Class I were 1.95%, 1.95%, 2.70%, and 1.70%, respectively. |
The Advisor(s) and each Sub-Advisor are permitted to recover expenses they have waived or reimbursed, on a class-by-class basis, through the agreements described above to the extent that expenses in later periods fall below the annual limits set forth in these agreements. The ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund, ALPS | Kotak India Growth Fund, ALPS | Smith Short Duration Bond Fund, ALPS | Smith Total Return Bond Fund, ALPS | Smith Balanced Opportunity Fund, ALPS | Smith Credit Opportunities Fund, ALPS | Red Rocks Global Opportunity Fund, and Clough China Fund are not obligated to pay any deferred fees and expenses more than thirty-six months after the date on which the fees was waived or expenses were deferred, as calculated on a monthly basis. As of the Fiscal Year Ended October 31, 2020, the Advisor and Sub-Advisor(s) may seek reimbursement of previously waived and reimbursed fees as follows:
Fund | Expires 10/31/21 | Expires 10/31/22 | Expires 10/31/23 | Total | ||||||||||||
ALPS | CoreCommodity Mgmt CompleteCommoditiesSM Strategy Fund - Investor Class | N/A | N/A | N/A | N/A | ||||||||||||
ALPS | CoreCommodity Mgmt CompleteCommoditiesSM Strategy Fund - Class A | N/A | N/A | N/A | N/A | ||||||||||||
ALPS | CoreCommodity Mgmt CompleteCommoditiesSM Strategy Fund - Class C | N/A | N/A | 112 | 112 | ||||||||||||
ALPS | CoreCommodity Mgmt CompleteCommoditiesSM Strategy Fund - Class I | N/A | N/A | N/A | N/A | ||||||||||||
ALPS | Kotak India Growth Fund - Investor Class | 75,758 | 74,543 | 12,699 | 163,000 | ||||||||||||
ALPS | Kotak India Growth Fund - Class A | 42 | 536 | 243 | 821 | ||||||||||||
ALPS | Kotak India Growth Fund - Class C | 20,620 | 29,613 | 5,802 | 56,035 | ||||||||||||
ALPS | Kotak India Growth Fund - Class I | 171,092 | 229,275 | 60,188 | 460,555 | ||||||||||||
ALPS | Kotak India Growth Fund - Class II | N/A | N/A | 411,967 | 411,967 | ||||||||||||
ALPS | Smith Short Duration Bond Fund - Investor Class | 2,130 | 1,603 | 2,510 | 6,243 | ||||||||||||
ALPS | Smith Short Duration Bond Fund - Class A | 1,214 | 752 | 2,600 | 4,566 | ||||||||||||
ALPS | Smith Short Duration Bond Fund - Class C | 1,236 | 1,398 | 1,915 | 4,549 | ||||||||||||
ALPS | Smith Short Duration Bond Fund - Class I | 33,418 | 105,940 | 184,309 | 323,667 | ||||||||||||
ALPS | Smith Total Return Bond Fund - Investor Class | 1,061 | 2,913 | 3,483 | 7,457 | ||||||||||||
ALPS | Smith Total Return Bond Fund - Class A | 1,197 | 1,933 | 4,094 | 7,224 | ||||||||||||
ALPS | Smith Total Return Bond Fund - Class C | 1,187 | 458 | 2,094 | 3,739 | ||||||||||||
ALPS | Smith Total Return Bond Fund - Class I | 37,658 | 128,360 | 461,477 | 627,495 | ||||||||||||
ALPS | Smith Credit Opportunities Fund - Investor Class | N/A | N/A | 972 | 972 | ||||||||||||
ALPS | Smith Credit Opportunities Fund - Class A | N/A | N/A | 1,487 | 1,487 | ||||||||||||
ALPS | Smith Credit Opportunities Fund - Class C | N/A | N/A | 743 | 743 | ||||||||||||
ALPS | Smith Credit Opportunities Fund - Class I | N/A | N/A | 21,266 | 21,266 | ||||||||||||
ALPS | Smith Balanced Opportunity Fund - Investor Class | N/A | N/A | 1,277 | 1,277 | ||||||||||||
ALPS | Smith Balanced Opportunity Fund - Class A | N/A | N/A | 2,362 | 2,362 | ||||||||||||
ALPS | Smith Balanced Opportunity Fund - Class C | N/A | N/A | 1,181 | 1,181 | ||||||||||||
ALPS | Smith Balanced Opportunity Fund - Class I | N/A | N/A | 26,090 | 26,090 | ||||||||||||
Clough China Fund - Investor Class | 22,462 | 31,929 | 28,455 | 82,846 | ||||||||||||
Clough China Fund - Class A | 9 | 1,835 | 3,601 | 5,445 | ||||||||||||
Clough China Fund - Class C | 8,014 | 8,760 | 4,818 | 21,592 | ||||||||||||
Clough China Fund - Class I | 42,718 | 66,102 | 73,774 | 182,594 |
203 | October 31, 2020
Notes to Financial Statements |
October 31, 2020 |
The CoreCommodity Management Cayman Commodity Fund Ltd. (the “Subsidiary”) has each entered into a separate advisory agreement (the “Subsidiary Advisory Agreement”) with CoreCommodity Management, LLC for the management of the Subsidiary’s portfolio pursuant to which the Subsidiary is obligated to pay the CoreCommodity Management, LLC a management fee at the same rate that the Fund pays AAI for investment advisory services provided to the Funds. CoreCommodity Management, LLC has agreed to waive the advisory fee it receives from the Fund in an amount equal to the management fee paid by the Subsidiary. This agreement may be terminated based on the terms of the Subsidiary Advisory Agreement. For the year ended October 31, 2020, this amount equaled $876,554 and is disclosed in the Consolidated Statements of Operations. These waivers are not subject to reimbursement/recoupment.
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund recovered $6 of reimbursed expense during the Fiscal Year Ended October 31, 2020.
The Riverfront Funds do not pay a management fee or contractually limit the amount of each Fund’s total annual expenses.
Kotak Mahindra Asset Management (Singapore) Pte. Ltd. executed purchase and sale trades in the ALPS | Kotak India Growth Fund with the sub-adviser’s affiliated broker-dealer, Kotak Securities, (the “affiliate broker”). Fund commissions paid to the affiliate broker were $30,120 during the year ended October 31, 2020.
ALPS Portfolio Solutions Distributor, Inc. (the “Distributor”) acts as the distributor of the Funds’ shares pursuant to a Distribution Agreement with the Trust. Shares are sold on a continuous basis by the Distributor, as agent for the Funds, and the Distributor has agreed to use its best efforts to solicit orders for the sale of Funds’ shares, although it is not obliged to sell any particular amount of shares. The Distributor is not entitled to any compensation for its services. The Distributor is registered as a broker -dealer with the Securities and Exchange Commission.
Distribution and Services (12b-1) Plans
Each Fund has adopted Distribution and Services Plans (the “Plans”) pursuant to Rule 12b-1 of the 1940 Act for its Investor Class, Class A, Class C and Class R (ALPS | Red Rocks Global Opportunity Fund only) and Investor Class II (Asset Allocation Aggressive only) shares. The Plans allows a Fund to use Investor Class, Class A, Class C, Class R and Investor Class II assets to pay fees in connection with the distribution and marketing of Investor Class, Class A, Class C, Class R and Investor Class II shares and/or the provision of shareholder services to Investor Class, Class A, Class C, Class R and Investor Class II shareholders. The Plans permit payment for services in connection with the administration of plans or programs that use Investor Class, Class A, Class C, Class R and Investor Class II shares of a Fund, if any, as their funding medium and for related expenses. The Plans permit a Fund to make total payments at an annual rate of up to 0.25% of a Fund’s average daily net assets attributable to its Investor Class, Class A and Investor Class II shares, 0.75% of a Fund’s average daily net assets attributable to its Class C shares and 0.50% of the ALPS | Red Rocks Global Opportunity Fund’s average daily net assets attributable to its Class R shares.
Under the terms of the Plans, the Trust is authorized to make payments to the Distributor for remittance to financial intermediaries, as compensation for distribution and/or shareholder ongoing services performed by such entities for beneficial shareholders of the Fund. The Distributor is entitled to retain some or all fees payable under the Plans in certain circumstances, including when there is no broker of record or when certain qualification standards have not been met by the broker of record.
Shareholder Services Plans
Each Fund has adopted a shareholder services plan with respect to their Investor Class shares (the “Investor Class Shareholder Services Plan”). Under the Investor Class Shareholder Services Plan, the Funds are authorized to compensate certain financial intermediaries, including broker dealers and Fund affiliates (“Participating Organizations”), an aggregate fee in an amount not to exceed on an annual basis 0.15% of the average daily net asset value of Investor Class shares of the Funds attributable to or held in the name of the Participating Organizations pursuant to an agreement with a such Participating Organizations (the “Agreement”). Each Agreement will set forth the non-distribution related shareholder services to be performed by the Participating Organizations for the benefit of a Fund’s shareholders who have elected to have such Participating Organizations service their accounts. Any amount of such payment not paid to Participating Organizations during a Fund’s fiscal year for such service activities shall be reimbursed to the Fund as soon as practicable. Shareholder Services Plan fees are included with distribution and service fees in the Statements of Operations. Investor Class Shareholder Services Plan fees recaptured pursuant to the Services Plan for the year ended October 31, 2020 are included as an offset to distribution and service fees as disclosed in the Statements of Operations.
Each Fund has adopted a shareholder services plan with respect to their Class A shares (the “Class A Shareholder Services Plan”). Under the Class A Shareholder Services Plan, the Funds are authorized to compensate certain financial intermediaries, including broker dealers and Fund affiliates, an aggregate fee in an amount not to exceed on an annual basis 0.15% of the average daily net asset value of Class A shares of the Funds attributable to or held in the name of the Participating Organizations pursuant to an agreement with a such Participating Organizations. Each Agreement will set forth the non-distribution related shareholder services to be performed by the Participating Organizations for the benefit of a Fund’s shareholders who have elected to have such Participating Organizations service their accounts. Any amount of such payment not paid to Participating Organizations during a Fund’s fiscal year for such service activities shall be reimbursed to the Fund as soon as practicable. Shareholder Services Plan fees are included with distribution and service fees in the Statements of Operations. Class A Shareholder Services Plan fees recaptured pursuant to the Services Plan for the year ended October 31, 2020 are included as an offset to distribution and service fees as disclosed in the Statements of Operations.
204 | October 31, 2020
Notes to Financial Statements |
October 31, 2020 |
Each Fund has adopted a shareholder services plan with respect to its Class C shares (the “Class C Shareholder Services Plan”). Under the Class C Shareholder Services Plan, the Funds are authorized to pay banks and their affiliates and other institutions, including broker-dealers and Fund affiliates (“Participating Organizations”), an aggregate fee in an amount not to exceed on an annual basis 0.25% for Class C shares of the average daily net asset value of the Class C shares attributable to or held in the name of a Participating Organization for its clients as compensation for providing shareholder service activities, which do not include distribution services, pursuant to an agreement with a Participating Organization. Any amount of such payment not paid to Participating Organizations during a Fund’s fiscal year for such service activities shall be reimbursed to the Fund as soon as practicable after the end of the fiscal year. Class C Shareholder Services Plan fees are included with distribution and service fees on the Statements of Operations.
Certain intermediaries may charge networking, omnibus account or other administrative fees with respect to transactions in shares of each Fund. Transactions may be processed through the National Securities Clearing Corporation or similar systems or processed on a manual basis. These fees generally are paid by the Fund to the Distributor, which uses such fees to reimburse intermediaries. In the event an intermediary receiving payments from the Distributor on behalf of the Fund converts from a networking structure to an omnibus account structure or otherwise experiences increased costs, fees borne by the Fund may increase. Networking fees are shown in the Statements of Operations, if applicable to the Fund.
ALPS Fund Services, Inc. (“ALPS”) serves as administrator to the Funds and the Funds have agreed to pay expenses incurred in connection with their administrative activities. Pursuant to an Administrative Agreement, ALPS provides operational services to the Funds including, but not limited to, fund accounting and fund administration and generally assists in the Funds’ operations. Officers of the Trust are employees of ALPS. The Funds’ administration fee is accrued on a daily basis and paid monthly. Administration fees paid by the Funds for the Fiscal Year Ended October 31, 2020 are disclosed in the Statement of Operations.
ALPS is reimbursed by the Funds for certain out-of-pocket expenses.
Trustees
The fees and expenses of the independent trustees of the Board are presented in the Statements of Operations.
9. INDEMNIFICATIONS
Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liability arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that may contain general indemnification clauses which may permit indemnification to the extent permissible under applicable law. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.
10. FUND REORGANIZATIONS
At a regular meeting of the Board of Trustees held on June 11-12, 2019, the Trustees of the Riverfront Asset Allocation Growth Fund (the “Acquired Fund”), a former series of the Trust, approved the reorganization, pursuant to an Agreement and Plan of Reorganization (the “Plan”), of the Acquired Fund into the Riverfront Asset Allocation Growth & Income Fund (“Acquiring Fund”). For accounting and financial reporting purposes, the Acquiring Fund is the accounting survivor.
At a regular meeting of the Board of Trustees held on June 11-12, 2019, the Trustees of the Riverfront Asset Allocation Income & Growth (the “Acquired Fund”), a former series of the Trust, approved the reorganization, pursuant to an Agreement and Plan of Reorganization (the “Plan”), of the Acquired Fund into the Riverfront Asset Allocation Moderate (“Acquiring Fund”). For accounting and financial reporting purposes, the Acquiring Fund is the accounting survivor.
The purpose of the Reorganizations was to combine two funds with substantially identical investment objectives and similar principal investment strategies and policies.
Following the completion of the reorganization on September 13, 2019, and pursuant to the terms of the Plan, shareholders of the Acquired Fund became shareholders of the Acquiring Fund and received their respective class shares. The reorganizations qualified as tax-free “reorganizations” under the Internal Revenue Code of 1986, as amended (the “Code”) for U.S. federal income tax purposes.
As of the close of business on September 13, 2019, assets of the Acquired Fund were acquired by the Acquiring Fund in exchange for shares of the Acquiring Fund and the assumption by the Acquiring Fund of the liabilities of the Acquired Fund. On the Reorganization date, the Acquiring Fund and the Acquired Fund reported the following financial information:
Acquiring Fund | Shares Outstanding of Acquiring Fund | Net Assets of Acquiring Fund | Acquired Fund | Acquired Fund Shares Exchanged | Net Assets of Acquired Fund Exchanged | ||||||||||||||
Moderate Fund | 5,562,515 | $ | 57,347,121 | Income & Growth | 794,393 | $ | 8,215,791 |
205 | October 31, 2020
Notes to Financial Statements |
October 31, 2020 |
Acquiring Fund | Shares Outstanding of Acquiring Fund | Net Assets of Acquiring Fund | Acquired Fund | Acquired Fund Shares Exchanged | Net Assets of Acquired Fund Exchanged | ||||||||||||||||
Growth & Income Fund | 5,621,165 | $ | 66,383,356 | Growth Fund | 1,887,723 | $ | 20,193,762 |
The investment portfolio value and unrealized appreciation/ (depreciation) as of the Reorganization Date of the Acquired Funds were as follows:
Acquired Fund | Portfolio Value | Unrealized Appreciation of Acquired Fund | ||||||
Income & Growth | $ | 8,219,930 | $ | 322,079 |
Acquired Fund | Portfolio Value | Unrealized (Deprecation) of Acquired Fund | |||||||
Growth Fund | $ | 20,257,358 | $ | (116,123 | ) |
Immediately following the Reorganizations the net assets of the Riverfront Asset Allocation Moderate and the Riverfront Asset Allocation Growth & Income were $65,562,912 and $86,577,118, respectively.
As a result of the Reorganizations, 799,127 Shares were issued in the Riverfront Asset Allocation Moderate Fund and 1,712,084 Shares were issued in the Riverfront Asset Allocation Growth & Income Fund.
Assuming the acquisition had been completed on November 1, 2019, the Acquiring Fund’s pro forma results of operations for the period November 1, 2018 to October 31, 2019, are as follows:
Moderate Fund Pro Forma (unaudited) | ||||
Net Investment Income | $ | 1,260,193 | ||
Net Realized and Unrealized Gain on Investments | 3,727,022 | |||
Net Increase in Net Assets Resulting from Operations | $ | 4,987,215 |
Growth & Income Fund Pro Forma (unaudited) | ||||
Net Investment Income | $ | 1,742,852 | ||
Net Realized and Unrealized Gain on Investments | 3,374,876 | |||
Net Increase in Net Assets Resulting from Operations | $ | 5,117,728 |
11. NEW ACCOUNTING PRONOUNCEMENTS
In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in the ASU provides optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank offered reference rates as of the end of 2021. The ASU is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management has reviewed the requirements and believes the adoption of this ASU will not have a material impact on the financial statements.
In October 2020, FASB issued Accounting Standards Update No. 2020-08 (“ASU 2020-08”), “Receivables -Nonrefundable Fees and Other Costs (Codification Improvements Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities”. ASU 2020-08 is an update of ASU No. 2017-08, which amends the amortization period of certain purchased callable debt securities held at a premium. ASU 2020-08 updates the amortization period for callable debt securities to be amortized to the next call date. For purposes of this update, the next call date is the first date when a call option at a specified price becomes exercisable. Once that date has passed, the next call date is when the next call option at a specified price becomes exercisable, if applicable. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Management has evaluated the implication of the additional disclosure requirement and determined that there is no impact to the Funds’ financial statements.
12. SUBSEQUENT EVENTS
Subsequent events after the date of Statement of Assets and Liabilities have been evaluated through the date the financial statements were issued. Management has determined that there were no subsequent events to report through the issuance of these financial statements.
206 | October 31, 2020
Report of Independent Registered Public Accounting Firm
To the shareholders and the Board of Trustees of Financial Investors Trust
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of Financial Investors Trust (the "Trust") comprising the funds listed in Appendix A, including the statements of investments as of October 31, 2020, the related statements of operations, statements of changes in net assets, and financial highlights for the periods indicated in Appendix A, and the related notes. In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds constituting the Financial Investors Trust as of October 31, 2020, the results of their operations, changes in their net assets, and financial highlights for each of the periods indicated in Appendix A, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights 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 and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, 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 and financial highlights. 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 and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2020, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
December 23, 2020
We have served as the auditor of one or more investment companies advised by ALPS Advisors, Inc. since 2007.
Appendix A | ||||
Fund | Statements of Assets and Liabilities, including the Statement of Investments | Statements of Operations, For the Year Ended | Statements of Changes in Net Assets for each of the Years in the Period Then Ended | Financial Highlights for each of the Years in the Period Then Ended |
ALPS | Red Rocks Global Opportunity Fund1 | 10/31/2020 | 10/31/2020 | 10/31/2020, Two Years | 10/31/2020, Five Years |
Clough China Fund | 10/31/2020 | 10/31/2020 | 10/31/2020, Two Years | 10/31/2020, Five Years |
RiverFront Asset Allocation Aggressive | 10/31/2020 | 10/31/2020 | 10/31/2020, Two Years | 10/31/2020, Five Years |
RiverFront Asset Allocation Growth & Income | 10/31/2020 | 10/31/2020 | 10/31/2020, Two Years | 10/31/2020, Five Years |
RiverFront Asset Allocation Moderate | 10/31/2020 | 10/31/2020 | 10/31/2020, Two Years | 10/31/2020, Five Years |
ALPS | Smith Short Duration Bond Fund2 | 10/31/2020 | 10/31/2020 | 10/31/2020, Two Years | 10/31/20202 |
ALPS | Smith Total Return Bond Fund2 | 10/31/2020 | 10/31/2020 | 10/31/2020, Two Years | 10/31/20202 |
ALPS | Smith Balanced Opportunity Fund3 | 10/31/20203 | 10/31/20203 | 10/31/20203 | 10/31/20203 |
ALPS | Smith Credit Opportunities Fund3 | 10/31/20203 | 10/31/20203 | 10/31/20203 | 10/31/20203 |
ALPS | Kotak India Growth Fund4 | 10/31/2020 | 10/31/2020 | 10/31/2020, Two Years | 10/31/2020, Five Years |
ALPS | CoreCommodity Management CompleteCommodities® Strategy Fund4 | 10/31/2020 | 10/31/2020 | 10/31/2020, Two Years | 10/31/2020, Five Years |
1 | Formerly ALPS | Red Rocks Listed Private Equity Fund. |
2 | Financial Highlights for each of the two years in the period ending October 31, 2020 and for the period July 2, 2018 (commencement of operations) to October 31, 2018. |
3 | Statement of Operations, Statements of Changes in Net Assets and Financial Highlights for the period September 16, 2020 (commencement of operations) to October 31, 2020. |
4 | Consolidated Statements of Assets and Liabilities, including the Consolidated Statements of Investments, related Consolidated Statements of Operations, the Consolidated Statements of Changes in Net Assets, and the Consolidated Financial Highlights. |
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Additional Information |
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1. FUND HOLDINGS
The Funds’ portfolio holdings are made available semi-annually in shareholder reports within 60 days after the close of the period for which the report is being made, as required by federal securities laws. The Funds also file monthly portfolio holdings on Form N-PORT on a quarterly basis, with the schedule of portfolio holdings filed on Form N-PORT for the third month of each Fund’s fiscal quarter made publicly available 60 days after the end of the Funds’ fiscal quarter.
2. FUND PROXY VOTING POLICIES, PROCEDURES AND SUMMARIES
Fund policies and procedures used in determining how to vote proxies and information regarding how each of the Funds voted proxies relating to portfolio securities during the most recent prior 12-month period ending June 30 are available without charge, (1) upon request, by calling (toll-free) (866) 759-5679 and (2) on the SEC’s website at http://www.sec.gov.
3. TAX DESIGNATIONS
Of the distributions paid by the Funds from ordinary income for the calendar year ended December 31, 2019, the following percentages met the requirements to be treated as qualifying for qualified dividend income and the corporate dividends received deduction:
QDI | DRD | |
ALPS|Core Commodity Management Complete Commodities® Strategy Fund | 70.67% | 20.53% |
ALPS|Kotak India Growth Fund | N/A | N/A |
ALPS Smith Total Return Bond Fund | 0.61% | 0.61% |
ALPS Smith Short Duration Bond Fund | N/A | N/A |
ALPS|Red Rocks Global Opportunity Fund | 15.50% | 2.69% |
Clough China Fund | 59.68% | 1.66% |
RiverFront Asset Allocation Growth & Income Fund | 80.40% | 37.62% |
RiverFront Asset Allocation Moderate Fund | 61.52% | 49.49% |
RiverFront Asset Allocation Aggressive Fund | 100% | 47.03% |
In early 2020, if applicable, shareholders of record received this information for the distribution paid to them by the Funds during the calendar year 2019 via Form 1099. The Funds will notify shareholders in early 2021 of amounts paid to them by the Funds, if any, during the calendar year 2020.
Pursuant to Section 852(b)(3) of the Internal Revenue Code the Funds designate the following amounts as long-term capital gain dividends:
ALPS|Core Commodity Management Complete Commodities® Strategy Fund | $ | – | ||
ALPS|Kotak India Growth Fund | $ | 363,112 | ||
ALPS Smith Total Return Bond Fund | $ | 8,170 | ||
ALPS Smith Short Duration Bond Fund | $ | 7,397 | ||
ALPS|Red Rocks Global Opportunity Fund | $ | 11,394,100 | ||
Clough China Fund | $ | 2,743,546 | ||
RiverFront Asset Allocation Growth & Income Fund | $ | – | ||
RiverFront Asset Allocation Moderate Fund | $ | – | ||
RiverFront Asset Allocation Aggressive Fund | $ | – |
The Funds below designate the following amounts for federal income tax purposes for the fiscal year ended October 31, 2020:
Foreign Taxes Paid | Foreign Source Income | |||||||
Clough China Fund | $ | – | $ | – |
4. DISCLOSURE REGARDING APPROVAL OF FUND ADVISORY AND SUB-ADVISORY AGREEMENTS
CoreCommodity Fund
On June 17, 2020, the Trustees met via electronic means (videoconference)1 to discuss, among other things, the approval of the Investment Advisory Agreement between Financial Investors Trust (the “Trust”), with respect to the ALPS/CoreCommodity Management CompleteCommodities Strategy Fund (the “CoreCommodity Fund”) and ALPS Advisors, Inc. (“AAI”), and the Sub-Advisory Agreement among the Trust, with respect to the CoreCommodity Fund, CoreCommodity Management, LLC (“CoreCommodity”), and AAI, in accordance with Section 15(c) of the 1940 Act. The Independent Trustees met with independent legal counsel during executive session and discussed the Investment Advisory Agreement and Sub-Advisory Agreement and other related materials. In renewing and approving the Investment Advisory Agreement and the
208 | October 31, 2020
Additional Information |
October 31, 2020 (Unaudited) |
Investment Sub-Advisory Agreement, the Trustees, including the Independent Trustees, considered the following factors with respect to the CoreCommodity Fund:
Investment Advisory and Sub-Advisory Fee Rates: The Trustees reviewed and considered the contractual annual advisory fee rate paid by the Trust, on behalf of the CoreCommodity Fund, to AAI, of 0.85% of the CoreCommodity Fund’s daily average net assets, in light of the extent and quality of the advisory services provided by AAI to the CoreCommodity Fund. The Trustees also reviewed and considered the contractual annual sub-advisory fee rate paid by AAI to CoreCommodity of 0.75% of the CoreCommodity Fund’s daily average net assets, in light of the extent and quality of the advisory services provided by CoreCommodity to the CoreCommodity Fund. The Trustees also considered information regarding compensation paid to affiliates of AAI under other agreements, such as the Fund Accounting and Administration Agreement with ALPS.
The Board received and considered information including a comparison of the CoreCommodity Fund’s contractual and gross advisory fee rates with those of funds in the peer group as selected by an independent provider of investment company data (the “Data Provider”). The Trustees noted that the contractual and gross advisory fee rate for each class of the CoreCommodity Fund was above the respective Data Provider peer group median rate.
Total Net Expense Ratios: The Trustees further reviewed and considered the total net expense ratios of 1.40%, 2.05%, 1.14%, and 1.39% for the Class A, Class C, Class I, and Investor Class shares, respectively, of the CoreCommodity Fund. The Trustees noted that the total net expense ratio of each class of the CoreCommodity Fund was above the respective Data Provider peer group median ratio.
Nature, Extent, and Quality of the Services under the Investment Advisory and Sub-Advisory Agreements: The Trustees received and considered information regarding the nature, extent, and quality of services provided to the CoreCommodity Fund under the Investment Advisory and Sub-Advisory Agreements. The Trustees reviewed certain background materials supplied by AAI and CoreCommodity in their presentations, including their Forms ADV.
The Trustees reviewed and considered AAI’s and CoreCommodity’s investment advisory personnel, their history as asset managers, and their performance and the amount of assets currently under management by AAI and CoreCommodity and their affiliated entities. The Trustees also reviewed the research and decision-making processes utilized by AAI and CoreCommodity, including the methods adopted to seek to achieve compliance with the investment objectives, policies, and restrictions of the CoreCommodity Fund.
The Trustees considered the background and experience of AAI’s and CoreCommodity’s management in connection with the CoreCommodity Fund, including reviewing the qualifications, backgrounds, and responsibilities of the management team primarily responsible for the day-to-day portfolio management of the CoreCommodity Fund and the extent of the resources devoted to research and analysis of actual and potential investments.
The Trustees also reviewed, among other things, AAI’s and CoreCommodity’s insider trading policies and procedures and their Codes of Ethics.
Performance: The Trustees reviewed performance information for the CoreCommodity Fund, which included a comparison of the CoreCommodity Fund’s performance to the performance of a universe of comparable funds selected by the Data Provider. The Trustees noted that the performance of each class of the CoreCommodity Fund, for the period ended March 31, 2020, was generally below the respective Data Provider peer group median performance for the three month, one year, three year, and five year periods, as applicable, and generally above the respective Data Provider peer group median performance for the since inception period. The Trustees also considered CoreCommodity’s investment performance and reputation generally and its investment techniques, risk management controls, and decision-making processes.
Comparable Accounts: The Trustees noted certain information provided by CoreCommodity regarding fees charged to its other clients utilizing a strategy similar to that employed by the CoreCommodity Fund. The Trustees also noted that AAI indicated that it had no other clients utilizing a strategy similar to that employed by the CoreCommodity Fund.
Profitability: The Trustees received and considered the profitability analyses prepared by AAI and CoreCommodity based on the fees payable under the Investment Advisory Agreement with AAI and the Investment Sub-Advisory Agreement with CoreCommodity with respect to the CoreCommodity Fund, respectively. The Trustees considered the profits, if any, realized by AAI and CoreCommodity in connection with the operation of the CoreCommodity Fund.
Economies of Scale: The Trustees considered whether economies of scale in the provision of services to the CoreCommodity Fund will be passed along to the shareholders under the agreements.
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Additional Information |
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Other Benefits to the Adviser and Sub-Adviser: The Trustees reviewed and considered any other incidental benefits derived or to be derived by AAI and CoreCommodity from their relationship with the CoreCommodity Fund, including whether soft dollar arrangements were used.
The Trustees, including all of the Independent Trustees, concluded that:
● | the contractual and gross advisory fee rate for each class of the CoreCommodity Fund was above the respective Data Provider peer group median rate; |
● | CoreCommodity’s fees under its sub-advisory agreements are paid directly by AAI; |
● | the total net expense ratio of each class of the CoreCommodity Fund was above the respective Data Provider peer group median ratio; |
● | the nature, extent, and quality of services rendered by AAI and CoreCommodity under the Investment Advisory and Sub-Advisory Agreements, respectively, with respect to the CoreCommodity Fund were adequate; |
● | the performance of each class of the CoreCommodity Fund, for the period ended March 31, 2020, was generally below the respective Data Provider peer group median performance for the three month, one year, three year, and give year periods, as applicable, and generally above the respective Data Provider peer group median performance for the since inception period; |
● | that (a) AAI had no other clients utilizing a strategy similar to that employed by the CoreCommodity Fund, and (b) bearing in mind the limitations of comparing different types of managed accounts and the different levels of service typically associated with such accounts, the fee structures applicable to CoreCommodity’s other clients employing a comparable strategy to the CoreCommodity Fund was not indicative of any unreasonableness with respect to the advisory and sub-advisory fees proposed to be payable by the CoreCommodity Fund; |
● | the profit, if any, realized by AAI and CoreCommodity in connection with the operation of the CoreCommodity Fund is not unreasonable to the CoreCommodity Fund; and |
● | there were no material economies of scale or other incidental benefits accruing to AAI and CoreCommodity in connection with their relationship with the CoreCommodity Fund. |
Based on the Trustees’ deliberations and their evaluation of the information described above, the Trustees, including all of the Independent Trustees, concluded that AAI’s and CoreCommodity’s compensation for investment advisory and sub-advisory services is consistent with the best interests of the CoreCommodity Fund and its shareholders.
RiverFront Funds
On June 17, 2020, the Trustees met via electronic means (videoconference)1 to discuss, among other things, the approval of the Investment Advisory Agreement between Financial Investors Trust (the “Trust”), with respect to RiverFront Asset Allocation Aggressive, RiverFront Asset Allocation Growth, RiverFront Asset Allocation Growth & Income, RiverFront Asset Allocation Moderate, and RiverFront Asset Allocation Income & Growth (collectively, the “RiverFront Funds”) and ALPS Advisors, Inc. (“AAI”), and the Sub-Advisory Agreement among the Trust, with respect to the RiverFront Funds, RiverFront Investment Group, LLC (“RiverFront”), and AAI, in accordance with Section 15(c) of the 1940 Act. The Independent Trustees met with independent legal counsel during executive session and discussed the Investment Advisory Agreement and Sub-Advisory Agreement and other related materials. In renewing and approving the Investment Advisory Agreement and the Investment Sub-Advisory Agreement, the Trustees, including the Independent Trustees, considered the following factors with respect to the RiverFront Funds:
Investment Advisory and Sub-Advisory Fee Rates: There are no investment advisory or sub-advisory fees paid with respect to the RiverFront Funds. The Trustees also considered information regarding compensation to be paid to affiliates of AAI under other agreements, such as the Fund Accounting and Administration Agreement with ALPS.
Total Net Expense Ratios: The Trustees reviewed and considered the total net expense ratios of the Class A, Class C, Class I, Investor Class, Investor Class II, and Class L shares of the RiverFront Funds. The Trustees noted that for RiverFront Asset Allocation Aggressive, the total net expense ratio was generally higher than the peer group median ratio for each class of shares, and for RiverFront Asset Allocation Growth & Income and RiverFront Asset Allocation Moderate, the total net expense ratio was generally lower than the peer group median ratio for each class of shares.
Nature, Extent, and Quality of the Services under the Investment Advisory and Sub-Advisory Agreements: The Trustees received and considered information regarding the nature, extent, and quality of services provided to the RiverFront Funds under the Investment Advisory and
210 | October 31, 2020
Additional Information |
October 31, 2020 (Unaudited) |
Sub-Advisory Agreements. The Trustees reviewed certain background materials supplied by AAI and RiverFront in their presentations, including their Forms ADV.
The Trustees reviewed and considered AAI’s and RiverFront’s investment advisory personnel, their history as asset managers and their performance and the amount of assets currently under management by AAI and RiverFront and their affiliated entities. The Trustees also reviewed the research and decision-making processes utilized by AAI and RiverFront, including the methods adopted to seek to achieve compliance with the investment objectives, policies, and restrictions of the RiverFront Funds.
The Trustees considered the background and experience of AAI’s and RiverFront’s management in connection with the RiverFront Funds, including reviewing the qualifications, backgrounds, and responsibilities of the management team primarily responsible for the day-to-day portfolio management of the RiverFront Funds and the extent of the resources devoted to research and analysis of actual and potential investments.
The Trustees also reviewed, among other things, AAI’s and RiverFront’s insider trading policies and procedures and their Codes of Ethics.
Performance: The Trustees reviewed performance information for the RiverFront Funds, which included a comparison of each Fund’s performance to the performance of a group of comparable funds selected by the Data Provider. The Trustees noted that the performance of each class of each of the RiverFront Funds was generally below the respective Data Provider peer group median performance for the three month, one year, three year, five year, ten year, and since inception periods ended March 31, 2020, as applicable, except for Class C shares of RiverFront Asset Allocation Moderate. The Trustees also considered RiverFront’s investment performance and reputation generally and its investment techniques, risk management controls, and decision-making processes.
Comparable Accounts: The Trustees noted certain information provided by RiverFront and AAI regarding fees charged to their other clients utilizing a strategy similar to that employed by the RiverFront Funds.
Profitability: The Trustees received and considered the profitability analyses prepared by AAI and RiverFront based on the fees payable under the Investment Advisory Agreement with AAI and the Investment Sub-Advisory Agreement with RiverFront with respect to the RiverFront Funds, respectively. The Trustees considered the profits, if any, realized by AAI and RiverFront in connection with the operation of each RiverFront Fund.
Economies of Scale: The Trustees considered whether economies of scale in the provision of services to the RiverFront Funds will be passed along to the shareholders under the agreements.
Other Benefits to the Adviser and Sub-Adviser: The Trustees reviewed and considered any other incidental benefits derived or to be derived by AAI and RiverFront from their relationship with the RiverFront Funds, including whether soft dollar arrangements were used.
The Trustees, including all of the Independent Trustees, concluded that:
● | there are no investment advisory or sub-advisory fees paid with respect to the RiverFront Funds; |
● | for RiverFront Asset Allocation Aggressive, the total net expense ratio was generally higher than the peer group median ratio for each class of shares, and for RiverFront Asset Allocation Growth & Income and RiverFront Asset Allocation Moderate, the total net expense ratios were generally lower than the peer group median ratios for each class of shares; |
● | the nature, extent, and quality of services rendered by AAI and RiverFront under the Investment Advisory and Sub-Advisory Agreements, respectively, with respect to the RiverFront Funds, as applicable, were adequate; |
● | that the performance of each class of each of the RiverFront Funds was generally below the respective Data Provider peer group median performance for the three month, one year, three year, five year, ten year, and since inception periods ended March 31, 2020, as applicable, except for Class C shares of RiverFront Asset Allocation Moderate; |
● | bearing in mind the limitations of comparing different types of managed accounts and the different levels of service typically associated with such accounts, the fee structures applicable to AAI’s and RiverFront’s other clients employing a comparable strategy to one or more of the RiverFront Funds were not indicative of any unreasonableness with respect to the advisory and sub-advisory fees proposed to be payable by the RiverFront Funds; |
● | the profit, if any, realized by AAI and RiverFront in connection with the operation of the RiverFront Funds, as applicable, is not unreasonable to the RiverFront Funds; and |
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Additional Information |
October 31, 2020 (Unaudited) |
● | there were no material economies of scale or other incidental benefits accruing to AAI and RiverFront in connection with their relationship with the RiverFront Funds. |
Based on the Trustees’ deliberations and their evaluation of the information described above, the Trustees, including all of the Independent Trustees, concluded that AAI’s and RiverFront’s compensation for investment advisory and sub-advisory services is consistent with the best interests of the RiverFront Funds and their shareholders.
Kotak Fund
On June 17, 2020, the Trustees met via electronic means (videoconference)1 to discuss, among other things, the approval of the Investment Advisory Agreement between Financial Investors Trust (the “Trust”), with respect to the ALPS/Kotak India Growth Fund (the “Kotak Fund”) and ALPS Advisors, Inc. (“AAI”), and the Sub-Advisory Agreement among the Trust, with respect to the Kotak Fund, Kotak Mahindra Asset Management (Singapore) Pte. Ltd. (“Kotak”), and AAI, in accordance with Section 15(c) of the 1940 Act. The Independent Trustees met with independent legal counsel during executive session and discussed the Investment Advisory Agreement and Sub-Advisory Agreement and other related materials. In renewing and approving the Investment Advisory Agreement and the Investment Sub-Advisory Agreement, the Trustees, including the Independent Trustees, considered the following factors with respect to the Kotak Fund:
Investment Advisory and Sub-Advisory Fee Rates: The Trustees reviewed and considered the contractual annual advisory fee rate paid by the Trust, on behalf of the Kotak Fund, to AAI, of 0.65% of the Kotak Fund’s daily average net assets, in light of the extent and quality of the advisory services provided by AAI to the Kotak Fund. The Trustees also reviewed and considered the contractual annual sub-advisory fee rate paid by AAI to Kotak of 0.56% of the Kotak Fund’s daily average net assets, in light of the extent and quality of the advisory services provided by Kotak to the Kotak Fund. The Trustees also considered information regarding compensation to be paid to affiliates of AAI under other agreements, such as the Fund Accounting and Administration Agreement with ALPS.
The Board received and considered information including a comparison of the Kotak Fund’s contractual and gross advisory fee rates with those of funds in the peer group as selected by an independent provider of investment company data (the “Data Provider”). The Trustees noted that the contractual and gross advisory fee rate for each class of the Kotak Fund was below the respective Data Provider peer group median rate.
Total Net Expense Ratios: The Trustees further reviewed and considered the total net expense ratios of 1.40%, 2.00%, 1.00%, 0.75%, and 1.40% for the Class A, Class C, Class I, Class II, and Investor Class shares, respectively, of the Kotak Fund. The Trustees noted that the total net expense ratio of each class of the Kotak Fund was below the respective Data Provider peer group median ratio.
Nature, Extent, and Quality of the Services under the Investment Advisory and Sub-Advisory Agreements: The Trustees received and considered information regarding the nature, extent, and quality of services to be provided to the Kotak Fund under the Investment Advisory and Sub-Advisory Agreements. The Trustees reviewed certain background materials supplied by AAI and Kotak in their presentations, including their Forms ADV.
The Trustees reviewed and considered AAI’s and Kotak’s investment advisory personnel, their history as asset managers and their performance and the amount of assets currently under management by AAI and Kotak and their affiliated entities. The Trustees also reviewed the research and decision-making processes utilized by AAI and Kotak, including the methods adopted to seek to achieve compliance with the investment objectives, policies, and restrictions of the Kotak Fund.
The Trustees considered the background and experience of AAI’s and Kotak’s management in connection with the Kotak Fund, including reviewing the qualifications, backgrounds, and responsibilities of the management team primarily responsible for the day-to-day portfolio management of the Kotak Fund and the extent of the resources devoted to research and analysis of actual and potential investments.
The Trustees also reviewed, among other things, AAI’s and Kotak’s insider trading policies and procedures and their Codes of Ethics.
Performance: The Trustees reviewed performance information for the Kotak Fund, which included a comparison of the Kotak Fund’s performance to the performance of a group of comparable funds selected by the Data Provider. The Trustees noted that the performance of each class of the Kotak Fund was generally below the respective Data Provider peer group median performance for the three month, one year, three year, and five year periods ended March 31, 2020, as applicable. The Trustees also considered Kotak’s investment performance and reputation generally and its investment techniques, risk management controls, and decision-making processes.
Comparable Accounts: The Trustees noted certain information provided by Kotak regarding fees charged to its other clients utilizing a strategy similar to that employed by the Kotak Fund. The Trustees also noted that AAI indicated that it had no other clients utilizing a strategy similar to that employed by the Kotak Fund.
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Additional Information |
October 31, 2020 (Unaudited) |
Profitability: The Trustees received and considered the profitability analyses prepared by AAI and Kotak based on the fees payable under the Investment Advisory Agreement with AAI and the Investment Sub-Advisory Agreement with Kotak, with respect to the Kotak Fund, respectively. The Trustees considered the profits, if any, realized by AAI and Kotak in connection with the operation of the Kotak Fund.
Economies of Scale: The Trustees considered whether economies of scale in the provision of services to the Kotak Fund will be passed along to the shareholders under the agreements.
Other Benefits to the Adviser and Sub-Adviser: The Trustees reviewed and considered any other incidental benefits derived or to be derived by AAI and Kotak from their relationship with the Kotak Fund, including whether soft dollar arrangements were used.
The Trustees, including all of the Independent Trustees, concluded that:
● | the contractual and gross advisory fee rate for each class of the Kotak Fund was below the respective Data Provider peer group median rate; |
● | Kotak’s fees under its sub-advisory agreements are paid directly by AAI; |
● | the total net expense ratio of each class of the Kotak Fund was below the respective Data Provider peer group median ratio; |
● | the nature, extent, and quality of services rendered by AAI and Kotak under the Investment Advisory and Sub-Advisory Agreements, respectively, with respect to the Kotak Fund were adequate; |
● | the performance of each class of the Kotak Fund was generally below the respective Data Provider peer group median performance for the three month, one year, three year, and five year periods ended March 31, 2020, as applicable; |
● | that (a) AAI had no other clients utilizing a strategy similar to that employed by the Kotak Fund, and (b) bearing in mind the limitations of comparing different types of managed accounts and the different levels of service typically associated with such accounts, the fee structures applicable to Kotak’s other clients employing a comparable strategy to the Kotak Fund was not indicative of any unreasonableness with respect to the advisory and sub-advisory fees proposed to be payable by the Kotak Fund; |
● | the profit, if any, realized by AAI and Kotak in connection with the operation of the Kotak Fund is not unreasonable to the Kotak Fund; and |
● | there were no material economies of scale or other incidental benefits accruing to AAI and Kotak in connection with their relationship with the Kotak Fund. |
Based on the Trustees’ deliberations and their evaluation of the information described above, the Trustees, including all of the Independent Trustees, concluded that AAI’s and Kotak’s compensation for investment advisory and sub-advisory services is consistent with the best interests of the Kotak Fund and its shareholders.
Red Rocks Fund
On June 17, 2020, the Trustees met via electronic means (videoconference)1 to discuss, among other things, the approval of the Investment Advisory Agreement between Financial Investors Trust (the “Trust”), with respect to the ALPS/Red Rocks Global Opportunity Fund (the “Red Rocks Fund”) and ALPS Advisors, Inc. (“AAI”), and the Sub-Advisory Agreement among the Trust, with respect to the Red Rocks Fund, Red Rocks Capital LLC (“Red Rocks”), and AAI, in accordance with Section 15(c) of the 1940 Act. The Independent Trustees met with independent legal counsel during executive session and discussed the Investment Advisory Agreement and Sub-Advisory Agreement and other related materials. In renewing and approving the Investment Advisory Agreement and the Investment Sub-Advisory Agreement, the Trustees, including the Independent Trustees, considered the following factors with respect to the Red Rocks Fund:
Investment Advisory and Sub-Advisory Fee Rates: The Trustees reviewed and considered the contractual annual advisory fee rate paid by the Trust, on behalf of the Red Rocks Fund, to AAI, of 0.85% of the Red Rocks Fund’s daily average net assets, in light of the extent and quality of the advisory services provided by AAI to the Red Rocks Fund. The Trustees also reviewed and considered the contractual annual sub-advisory fee rate paid by AAI to Red Rocks of 2/3 of the contractual annual advisory fee paid by the Trust to AAI, in light of the extent and quality of the advisory services provided by Red Rocks to the Red Rocks Fund. The Trustees also considered information regarding compensation paid to affiliates of AAI under other agreements, such as the Fund Accounting and Administration Agreement with ALPS.
The Board received and considered information including a comparison of the Red Rocks Fund’s contractual and gross advisory fee rates with those of funds in the peer group as selected by an independent provider of investment company data (the “Data Provider”). The Trustees noted that the
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Additional Information |
October 31, 2020 (Unaudited) |
contractual and gross advisory fee rates for the Red Rocks Fund were generally above the respective Data Provider peer group median rate for Class A and Class C and below the respective Data Provider peer group median rate for Class I, Investor Class, and Class R.
Total Net Expense Ratios: The Trustees further reviewed and considered the total net expense ratios of 1.48%, 2.16%, 1.19%, 1.44%, and 1.61% for the Class A, Class C, Class I, Investor Class, and Class R shares, respectively, of the Red Rocks Fund. The Trustees noted that the total net expense ratios for the Red Rocks Fund were above the respective Data Provider peer group median ratios for Class A and Class C and below the respective Data Provider peer group median ratios for Class I, Investor Class, and Class R.
Nature, Extent, and Quality of the Services under the Investment Advisory and Sub-Advisory Agreements: The Trustees received and considered information regarding the nature, extent, and quality of services to be provided to the Red Rocks Fund under the Investment Advisory and Sub-Advisory Agreements. The Trustees reviewed certain background materials supplied by AAI and Red Rocks in their presentations, including their Forms ADV.
The Trustees reviewed and considered AAI’s and Red Rocks’ investment advisory personnel, their history as asset managers and their performance and the amount of assets currently under management by AAI and Red Rocks and their affiliated entities. The Trustees also reviewed the research and decision-making processes utilized by AAI and Red Rocks, including the methods adopted to seek to achieve compliance with the investment objectives, policies, and restrictions of the Red Rocks Fund.
The Trustees considered the background and experience of AAI’s and Red Rocks’ management in connection with the Red Rocks Fund, including reviewing the qualifications, backgrounds, and responsibilities of the management team primarily responsible for the day-to-day portfolio management of the Red Rocks Fund and the extent of the resources devoted to research and analysis of actual and potential investments.
The Trustees also reviewed, among other things, AAI’s and Red Rocks’ insider trading policies and procedures and their Codes of Ethics.
Performance: The Trustees reviewed performance information for the Red Rocks Fund, which included a comparison of the Red Rocks Fund’s performance to the performance of a peer group selected by the Data Provider. The Trustees noted that the performance of each class of the Red Rocks Fund was below the respective Data Provider peer group median performance for the three month period ended March 31, 2020, and generally above the respective Data Provider peer group median performance for the one year, three year, five year, ten year, and since inception periods, as applicable, ended March 31, 2020, except for Class R, which generally had performance below the Data Provider peer group median performance for all applicable periods. The Trustees also considered Red Rocks’ investment performance and reputation generally and its investment techniques, risk management controls, and decision-making processes.
Comparable Accounts: The Trustees noted certain information provided by Red Rocks and AAI regarding fees charged to their other clients utilizing a strategy similar to that employed by the Red Rocks Fund.
Profitability: The Trustees received and considered a combined profitability analysis prepared by AAI for AAI and Red Rocks based on the fees payable under the Investment Advisory Agreement with AAI and the Sub-Advisory Agreement with Red Rocks, with respect to the Red Rocks Fund.
Economies of Scale: The Trustees considered whether economies of scale in the provision of services to the Red Rocks Fund will be passed along to the shareholders under the agreements.
Other Benefits to the Adviser and Sub-Adviser: The Trustees reviewed and considered any other incidental benefits derived or to be derived by AAI and Red Rocks from their relationship with the Red Rocks Fund, including whether soft dollar arrangements were used.
The Trustees, including all of the Independent Trustees, concluded that:
● | the contractual and gross advisory fee rates for the Red Rocks Fund were generally above the respective Data Provider peer group median rates for Class A and Class C and below the respective Data Provider peer group median rates for Class I, Investor Class, and Class R; |
● | Red Rocks’ fees under its sub-advisory agreements are paid directly by AAI; |
● | the total net expense ratios for the Red Rocks Fund were above the respective Data Provider peer group median ratios for Class A and Class C and below the respective Data Provider peer group median ratios for Class I, Investor Class, and Class R; |
● | the nature, extent, and quality of services rendered by AAI and Red Rocks under the Investment Advisory and Sub-Advisory Agreements, respectively, with respect to the Red Rocks Fund were adequate; |
214 | October 31, 2020
Additional Information |
October 31, 2020 (Unaudited) |
● | the performance of each class of the Red Rocks Fund was below the respective Data Provider peer group median performance for the three month period ended March 31, 2020, and generally above the respective Data Provider peer group median performance for the one year, three year, five year, ten year, and since inception periods, as applicable, ended March 31, 2020, except for Class R, which generally had performance below the Data Provider peer group median performance for all applicable periods; |
● | bearing in mind the limitations of comparing different types of managed accounts and the different levels of service typically associated with such accounts, the fee structures applicable to AAI’s and Red Rocks’ other clients employing a comparable strategy to the Red Rocks Fund was not indicative of any unreasonableness with respect to the advisory and sub-advisory fees proposed to be payable by the Red Rocks Fund; |
● | the profit, if any, realized by AAI and Red Rocks in connection with the operation of the Red Rocks Fund is not unreasonable to the Red Rocks Fund; and |
● | there were no material economies of scale or other incidental benefits accruing to AAI and Red Rocks in connection with their relationship with the Red Rocks Fund. |
Based on the Trustees’ deliberations and their evaluation of the information described above, the Trustees, including all of the Independent Trustees, concluded that AAI’s and Red Rocks’ compensation for investment advisory and sub-advisory services is consistent with the best interests of the Red Rocks Fund and its shareholders.
Clough Fund
On June 17, 2020, the Trustees met via electronic means (videoconference)1 to discuss, among other things, the approval of the Investment Advisory Agreement between Financial Investors Trust (the “Trust”), with respect to the Clough China Fund (the “Clough Fund”) and ALPS Advisors, Inc. (“AAI”), and the Sub-Advisory Agreement among the Trust, with respect to the Clough Fund, Clough Capital Partners LP (“Clough Capital”), and AAI, in accordance with Section 15(c) of the 1940 Act. The Independent Trustees met with independent legal counsel during executive session and discussed the Investment Advisory Agreement and Sub-Advisory Agreement and other related materials. In renewing and approving the Investment Advisory Agreement and the Investment Sub-Advisory Agreement, the Trustees, including the Independent Trustees, considered the following factors with respect to the Clough Fund:
Investment Advisory and Sub-Advisory Fee Rates: The Trustees reviewed and considered the contractual annual advisory fee rate paid by the Trust, on behalf of the Clough Fund, to AAI of 1.35% of the Clough Fund’s daily average net assets, in light of the extent and quality of the advisory services provided by AAI to the Clough Fund. The Trustees also reviewed and considered the contractual annual sub-advisory fee rate paid by AAI to Clough Capital of 0.90% of the Clough Fund’s daily average net assets, in light of the extent and quality of the advisory services provided by Clough Capital to the Clough Fund. The Trustees also considered information regarding compensation paid to affiliates of AAI under other agreements, such as the Fund Accounting and Administration Agreement with ALPS.
The Board received and considered information including a comparison of the Clough Fund’s contractual and gross advisory fee rates with those of funds in the peer group as selected by an independent provider of investment company data (the “Data Provider”). The Trustees noted that the contractual and advisory fee rate for each class of the Clough Fund was above the respective Data Provider peer group median rate. In considering the advisory fee rates of the Clough Fund, the Trustees considered Clough Capital’s statements regarding potential proposed reductions in such fees.
Total Net Expense Ratios: The Trustees further reviewed and considered the total net expense ratios of 1.95%, 2.70%, 1.70%, and 1.95% for the Class A, Class C, Class I, and Investor Class shares, respectively, of the Clough Fund. The Trustees noted that the total net expense ratio of each class of the Clough Fund was above the respective Data Provider peer group median ratio.
Nature, Extent, and Quality of the Services under the Investment Advisory and Sub-Advisory Agreements: The Trustees received and considered information regarding the nature, extent, and quality of services to be provided to the Clough Fund under the Investment Advisory and Sub-Advisory Agreements. The Trustees reviewed certain background materials supplied by AAI and Clough Capital in their presentations, including their Forms ADV.
The Trustees reviewed and considered AAI’s and Clough Capital’s investment advisory personnel, their history as asset managers and their performance and the amount of assets currently under management by AAI and Clough Capital and their affiliated entities. The Trustees also reviewed the research and decision-making processes utilized by AAI and Clough Capital, including the methods adopted to seek to achieve compliance with the investment objectives, policies, and restrictions of the Clough Fund.
215 | October 31, 2020
Additional Information |
October 31, 2020 (Unaudited) |
The Trustees considered the background and experience of AAI’s and Clough Capital’s management in connection with the Clough Fund, including reviewing the qualifications, backgrounds, and responsibilities of the management team primarily responsible for the day-to-day portfolio management of the Clough Fund and the extent of the resources devoted to research and analysis of actual and potential investments.
The Trustees also reviewed, among other things, AAI’s and Clough Capital’s insider trading policies and procedures and their Codes of Ethics.
Performance: The Trustees reviewed performance information for the Clough Fund, which included a comparison of the Clough Fund’s performance to the performance of a group of comparable funds selected by the Data Provider. The Trustees noted that the performance of each class of the Clough Fund was below the respective Data Provider peer group median performance for the three month, one year, three year, five year, ten year, and since inception periods ended March 31, 2020, as applicable. In considering the recent performance of the Clough Fund, the Trustees considered Clough Capital’s statements regarding its expectations for performance in the near term and regarding recent personnel changes at the firm. The Trustees also considered Clough Capital’s investment performance and reputation generally and its investment techniques, risk management controls and decision-making processes.
Comparable Accounts: The Trustees noted certain information provided by Clough Capital regarding fees charged to its other clients utilizing a strategy similar to that employed by the Clough Fund. The Trustees also noted that AAI indicated that it had no other clients utilizing a strategy similar to that employed by the Clough Fund.
Profitability: The Trustees received and considered the profitability analyses prepared by AAI and Clough Capital based on the fees payable under the Investment Advisory Agreement with AAI and the Investment Sub-Advisory Agreement with Clough Capital with respect to the Clough Fund, respectively. The Trustees considered the profits, if any, realized by AAI and Clough Capital in connection with the operation of the Clough Fund.
Economies of Scale: The Trustees considered whether economies of scale in the provision of services to the Clough Fund will be passed along to the shareholders under the agreements.
Other Benefits to the Adviser and Sub-Adviser: The Trustees reviewed and considered any other incidental benefits derived or to be derived by AAI and Clough Capital from their relationship with the Clough Fund, including whether soft dollar arrangements were used.
In renewing AAI as the Clough Fund’s investment adviser and Clough Capital as the Clough Fund’s sub-adviser and the fees charged under the Investment Advisory and Sub-Advisory Agreements, the Trustees concluded that no single factor reviewed by the Trustees was identified by the Trustees to be determinative as the principal factor in whether to renew the Investment Advisory and Sub-Advisory Agreements. Further, the Independent Trustees were advised by separate independent legal counsel throughout the process. The Trustees, including all of the Independent Trustees, concluded that:
● | the contractual and advisory fee rate for each class of the Clough Fund was above the respective Data Provider peer group median rate; |
● | Clough Capital’s fees under its sub-advisory agreements are paid directly by AAI; |
● | the total net expense ratio of each class of the Clough Fund was above the respective Data Provider peer group median ratio; |
● | the nature, extent, and quality of services rendered by AAI and Clough Capital under the Investment Advisory and Sub-Advisory Agreements, respectively, with respect to the Clough Fund were adequate; |
● | the performance of each class of the Clough Fund was below the respective Data Provider peer group median performance for the three month, one year, three year, five year, ten year, and since inception periods ended March 31, 2020, as applicable; |
● | that (a) AAI had no other clients utilizing a strategy similar to that employed by the Clough Fund, and (b) bearing in mind the limitations of comparing different types of managed accounts and the different levels of service typically associated with such accounts, the fee structures applicable to Clough Capital’s other clients employing a comparable strategy to the Clough Fund was not indicative of any unreasonableness with respect to the advisory and sub-advisory fees proposed to be payable by the Clough Fund; |
● | the profit, if any, realized by AAI and Clough Capital in connection with the operation of the Clough Fund is not unreasonable to the Clough Fund; and |
● | there were no material economies of scale or other incidental benefits accruing to AAI and Clough Capital in connection with their relationship with the Clough Fund. |
216 | October 31, 2020
Additional Information |
October 31, 2020 (Unaudited) |
Based on the Trustees’ deliberations and their evaluation of the information described above, the Trustees, including all of the Independent Trustees, concluded that AAI’s and Clough Capital’s compensation for investment advisory and sub-advisory services is consistent with the best interests of the Clough Fund and its shareholders.
Smith Funds
On June 17, 20120, the Trustees met via electronic means (videoconference)1 to discuss, among other things, the approval of the Investment Advisory Agreement between Financial Investors Trust (the “Trust”), with respect to the ALPS/Smith Total Return Bond Fund and the ALPS/Smith Short Duration Bond Fund (collectively, the “Smith Funds”) and ALPS Advisors, Inc. (“AAI”), and the Sub-Advisory Agreement among the Trust, with respect to the Smith Funds, Smith Capital Investors, LLC (“Smith Capital”), and AAI, in accordance with Section 15(c) of the 1940 Act. The Independent Trustees met with independent legal counsel during executive session and discussed the Investment Advisory Agreement and Sub-Advisory Agreement and other related materials. In renewing and approving the Investment Advisory Agreement and the Investment Sub-Advisory Agreement, the Trustees, including the Independent Trustees, considered the following factors with respect to the Smith Funds:
Investment Advisory and Sub-Advisory Fee Rates: The Trustees reviewed and considered the contractual annual advisory fee rates paid by the Trust, on behalf of the Smith Funds, to AAI, of 0.37% of the daily average net assets of the ALPS/Smith Short Duration Bond (the “Short Duration Bond Fund”) and 0.55% of the daily average net assets of the ALPS/Smith Total Return Bond Fund (the “Total Return Bond Fund,”) in light of the extent and quality of the advisory services provided by AAI to the Smith Funds. The Trustees also reviewed and considered the contractual annual sub-advisory fee rates paid by AAI to Smith Capital of 0.29% of the Short Duration Bond Fund’s daily average net assets and 0.42% of the Total Return Bond Fund’s daily average daily ne assets, in light of the extent and quality of the advisory services provided by Smith Capital to the Smith Funds. The Trustees also considered information regarding compensation to be paid to affiliates of AAI under other agreements, such as the Fund Accounting and Administration Agreement with ALPS.
The Board received and considered information including a comparison of each Smith Fund’s contractual and gross advisory fee rates with those of funds in the peer group as selected by an independent provider of investment company data (the “Data Provider”). The Trustees noted that the contractual and gross advisory fee rate for each class of each Smith Fund was generally above the respective Data Provider peer group median rate.
Total Net Expense Ratios: The Trustees further reviewed and considered the total net expense ratios of 0.95%, 1.67%, 0.67%, and 0.96% for the Class A, Class C, Class I, and Investor Class shares, respectively, of the Total Return Bond Fund and 0.74%, 1.49%, 0.49%, and 0.76% for the Class A, Class C, Class I, and Investor Class shares, respectively, of the Short Duration Bond Fund. The Trustees noted that the total net expense ratio of each class of each Smith Fund was generally above the respective Data Provider peer group median ratio.
Nature, Extent, and Quality of the Services under the Investment Advisory and Sub-Advisory Agreements: The Trustees received and considered information regarding the nature, extent, and quality of services to be provided to the Smith Funds under the Investment Advisory and Sub-Advisory Agreements. The Trustees reviewed certain background materials supplied by AAI and Smith Capital in their presentations, including their Forms ADV.
The Trustees reviewed and considered AAI’s and Smith Capital’s investment advisory personnel, their history as asset managers and their performance and the amount of assets currently under management by AAI and Smith Capital and their affiliated entities. The Trustees also reviewed the research and decision-making processes utilized by AAI and Smith Capital, including the methods adopted to seek to achieve compliance with the investment objectives, policies and restrictions of the Smith Funds.
The Trustees considered the background and experience of AAI’s and Smith Capital’s management in connection with the Smith Funds, including reviewing the qualifications, backgrounds and responsibilities of the management team primarily responsible for the day-to-day portfolio management of the Smith Funds and the extent of the resources devoted to research and analysis of actual and potential investments.
The Trustees also reviewed, among other things, AAI’s and Smith Capital’s insider trading policies and procedures and their Codes of Ethics.
Performance: The Trustees reviewed performance information for each Smith Fund, which included a comparison of each Smith Fund’s performance to the performance of a group of comparable funds selected by the Data Provider. The Trustees noted that the performance of each class of each Smith Fund was above the respective Data Provider peer group median performance for the three month, one year, and since inception periods ended March 31, 2020. The Trustees also considered Smith Capital’s investment performance and reputation generally and its investment techniques, risk management controls, and decision-making processes.
Comparable Accounts: The Trustees noted that neither Smith Capital nor AAI currently manages any other accounts with similar strategies to the Smith Funds.
217 | October 31, 2020
Additional Information |
October 31, 2020 (Unaudited) |
Profitability: The Trustees received and considered the profitability analyses prepared by AAI and Smith Capital based on the fees payable under the Investment Advisory Agreement with AAI and the Investment Sub-Advisory Agreement with Smith Capital, with respect to the Smith Funds, respectively. The Trustees considered the profits, if any, realized by AAI and Smith Capital in connection with the operation of the Smith Funds.
Economies of Scale: The Trustees considered whether economies of scale in the provision of services to the Smith Funds will be passed along to the shareholders under the agreements.
Other Benefits to the Adviser and Sub-Adviser: The Trustees reviewed and considered any other incidental benefits derived or to be derived by AAI and Smith Capital from their relationship with the Smith Funds, including whether soft dollar arrangements were used.
The Trustees, including all of the Independent Trustees, concluded that:
● | the contractual and gross advisory fee rates for each class of each Smith Fund were generally above the respective Data Provider peer group median rates; |
● | Smith Capital’s fees under its sub-advisory agreement are paid directly by AAI; |
● | the total net expense ratio of each class of each Smith Fund was generally above the Data Provider peer group median ratio; |
● | the nature, extent, and quality of services rendered by AAI and Smith Capital under the Investment Advisory and Sub-Advisory Agreements, respectively, with respect to the Smith Funds were adequate; |
● | the performance of each class of each Smith Fund was above the respective Data Provider peer group median performance for the three month, one year, and since inception periods ended March 31, 2020; |
● | that neither AAI nor Smith Capital currently manages any other accounts with similar investment strategies to the Smith Funds; |
● | the profit, if any, realized by AAI and Smith Capital in connection with the operation of the Smith Funds is not unreasonable to the Smith Funds; and |
● | there were no material economies of scale or other incidental benefits accruing to AAI and Smith Capital in connection with their relationship with the Smith Funds. |
Based on the Trustees’ deliberations and their evaluation of the information described above, the Trustees, including all of the Independent Trustees, concluded that AAI’s and Smith Capital’s compensation for investment advisory and sub-advisory services is consistent with the best interests of each of the Smith Funds and its shareholders.
New Smith Funds
On June 17, 20120, the Trustees met via electronic means (videoconference)1 to discuss, among other things, the approval of the Investment Advisory Agreement between Financial Investors Trust (the “Trust”), with respect to the ALPS/Smith Balanced Opportunity Fund and the ALPS/Smith Credit Opportunities Fund (collectively, the “New Smith Funds”) and ALPS Advisors, Inc. (“AAI”), and the Sub-Advisory Agreement among the Trust, with respect to the New Smith Funds, Smith Capital Investors, LLC (“Smith Capital”), and AAI, in accordance with Section 15(c) of the 1940 Act. The Independent Trustees met with independent legal counsel during executive session and discussed the Investment Advisory Agreement and Sub-Advisory Agreement and other related materials. In approving the Investment Advisory Agreement and the Investment Sub-Advisory Agreement, the Trustees, including the Independent Trustees, considered the following factors with respect to the New Smith Funds:
Investment Advisory and Sub-Advisory Fee Rates: The Trustees reviewed and considered the contractual annual advisory fee rate to be paid by the Trust, on behalf of the ALPS/Smith Balanced Opportunity Fund (the “Balanced Opportunity Fund”), of 0.70% of such Fund’s daily average net assets, and on behalf of the of the ALPS/Smith Credit Opportunities Fund (the “Credit Opportunities Fund”), of 0.75% of such Fund’s daily average net assets, to AAI, in light of the extent and quality of the advisory services to be provided by AAI to the New Smith Funds. The Trustees also reviewed and considered the contractual annual sub-advisory fee rate to be paid by AAI to Smith Capital of 0.37% of the Balanced Opportunity Fund’s daily average net assets and of 0.50% of the Credit Opportunities Fund’s daily average net assets, in light of the extent and quality of the advisory services to be provided by Smith Capital to the New Smith Funds. The Trustees also considered information regarding compensation to be paid to affiliates of AAI under other agreements, such as the Fund Accounting and Administration Agreement with ALPS.
218 | October 31, 2020
Additional Information |
October 31, 2020 (Unaudited) |
The Board received and considered information including a comparison of each New Smith Fund’s contractual advisory fee rate with those of funds in the peer group as selected by an independent provider of investment company data (the “Data Provider”). The Trustees noted that the contractual advisory fee rate of the Balanced Opportunity Fund was below the Data Provider peer group median rate, and the contractual advisory fee rate of the Credit Opportunities Fund was above the Data Provider peer group median rate.
Total Net Expense Ratios: The Trustees further reviewed and considered the total net expense ratios of 0.85% and 0.90% for the Class I shares of the Balanced Opportunity Fund and Credit Opportunities Fund, respectively. The Trustees noted that the total net expense ratio of Class I of the Balanced Opportunity Fund was below the Data Provider peer group median ratio and the total net expense ratio of Class I of the Credit Opportunities Fund was above the Data Provider peer group median ratio.
Nature, Extent, and Quality of the Services under the Investment Advisory and Sub-Advisory Agreements: The Trustees received and considered information regarding the nature, extent, and quality of services to be provided to the New Smith Funds under the Investment Advisory and Sub-Advisory Agreements. The Trustees reviewed certain background materials supplied by AAI and Smith Capital in their presentations, including their Forms ADV.
The Trustees reviewed and considered AAI’s and Smith Capital’s investment advisory personnel, their history as asset managers and their performance, and the amount of assets currently under management by AAI and Smith Capital and their affiliated entities. The Trustees also reviewed the research and decision-making processes utilized by AAI and Smith Capital, including the proposed methods adopted to seek to achieve compliance with the proposed investment objectives, policies, and restrictions of the New Smith Funds.
The Trustees considered the background and experience of AAI’s and Smith Capital’s management in connection with the New Smith Funds, including reviewing the qualifications, backgrounds, and responsibilities of the management team that would be primarily responsible for the day-to-day portfolio management of the New Smith Funds and the extent of the resources that would be devoted to research and analysis of actual and potential investments.
The Trustees also reviewed, among other things, AAI’s and Smith Capital’s insider trading policies and procedures and their Codes of Ethics.
Performance: The Trustees noted that since the New Smith Funds have not yet begun operations, there is no performance to be reviewed or analyzed at this time. The Trustees further considered the reputation of Smith Capital’s personnel generally and its investment techniques, risk management controls, and decision-making processes.
Comparable Accounts: The Trustees noted that neither AAI nor Smith Capital currently manages any other accounts with similar investment strategies to the New Smith Funds.
Profitability: The Trustees received and considered the projected profitability analyses prepared by AAI and Smith Capital based on the fees to be paid under the Investment Advisory Agreement with AAI and the Investment Sub-Advisory Agreement with Smith Capital, with respect to the New Smith Funds. The Trustees considered the profits, if any, anticipated to be realized by AAI and Smith Capital in connection with the operation of the New Smith Funds.
Economies of Scale: The Trustees considered whether economies of scale in the provision of services to the New Smith Funds would be passed along to the shareholders under the agreements.
Other Benefits to the Adviser and Sub-Adviser: The Trustees reviewed and considered any other incidental benefits to be derived by Smith Capital or AAI from their relationship with the New Smith Funds, including whether soft dollar arrangements would be used.
The Trustees, including all of the Independent Trustees, concluded that:
● | the contractual advisory fee rate of the Balanced Opportunity Fund was below the Data Provider peer group median rate, and the contractual advisory fee rate of the Credit Opportunities Fund was above the Data Provider peer group median rate; |
● | Smith Capital’s fees under its sub-advisory agreements are to be paid directly by AAI; |
● | the total net expense ratio of Class I of the Balanced Opportunity Fund was below the Data Provider peer group median ratio and the total net expense ratio of Class I of the Credit Opportunities Fund was above the Data Provider peer group median ratio; |
219 | October 31, 2020
Additional Information |
October 31, 2020 (Unaudited) |
● | the nature, extent, and quality of services to be rendered by AAI and Smith Capital under the Investment Advisory and Sub-Advisory Agreements, respectively, with respect to the New Smith Funds were adequate; |
● | since the New Smith Funds had not yet begun operations, there was no performance to be reviewed or analyzed at this time; |
● | that neither AAI nor Smith Capital currently manages any other accounts with similar investment strategies to the New Smith Funds; |
● | since the New Smith Funds were not yet in existence, no profit had been realized by AAI or Smith Capital in connection with the operation of the New Smith Funds; and |
● | there were no material economies of scale or other incidental benefits accruing to AAI and Smith Capital in connection with their relationship with the New Smith Funds. |
Based on the Trustees’ deliberations and their evaluation of the information described above, the Trustees, including all of the Independent Trustees, concluded that AAI’s and Smith Capital’s compensation for investment advisory and sub-advisory services is consistent with the best interests of the New Smith Funds and its shareholders.
1 | This meeting was intended to qualify as an "in-person" meeting of the Board pursuant to relief granted by the SEC in response to the COVID-19 outbreak for the purposes of fulfilling the in-person investment advisory agreement approval requirements under Section 15(c) of the 1940 Act (see Investment Company Act Release No. 33817 (Mar. 13, 2020), Investment Company Act Release No. 33824 (Mar. 25, 2020)). |
220 | October 31, 2020
Trustees and Officers |
October 31, 2020 (Unaudited) |
Additional information regarding the Funds’ trustees is included in the Statement of Additional Information, which can be obtained without charge by calling (toll-free) (866) 759-5679.
INDEPENDENT TRUSTEES
Name, Address* & Year of Birth | Position(s) Held with Fund | Term of Office** and Length of Time Served | Principal Occupation(s) During Past 5 Years*** | Number of Funds in Fund Complex Overseen by Trustee**** | Other Directorships Held by Trustee During Past 5 Years*** |
Mary K. Anstine, 1940 | Trustee and Chairman | Ms. Anstine was elected at a special meeting of shareholders held on March 21, 1997 and re-elected at a special meeting of shareholders held on August 7, 2009. Ms. Anstine was appointed Chairman of the Board at the June 6, 2017 meeting of the Board of Trustees. | Ms. Anstine was formerly an Executive Vice President of First Interstate Bank of Denver until 1994, President/Chief Executive Officer of HealthONE Alliance, Denver, Colorado, from 1994 to 2004, and has been retired since 2004. Ms. Anstine is also Trustee/Director of AV Hunter Trust and Colorado Uplift Board. Ms. Anstine was formerly a Director of the Trust Bank of Colorado (later purchased and now known as Northern Trust Bank), HealthONE and Denver Area Council of the Boy Scouts of America, and a member of the American Bankers Association Trust Executive Committee. | 54 | Ms. Anstine is a Trustee of ALPS ETF Trust (16 funds); ALPS Variable Investment Trust (7 funds); Reaves Utility Income Fund (1 fund); and Segall Bryant & Hamill Trust (14 funds). |
Jeremy W. Deems, 1976 | Trustee | Mr. Deems was appointed as a Trustee at the March 11, 2008 meeting of the Board of Trustees and elected at a special meeting of shareholders held on August 7, 2009. | Mr. Deems is the Co-Founder, Chief Operations Officer and Chief Financial Officer of Green Alpha Advisors, LLC, a registered investment advisor, and Co-Portfolio Manager of the Shelton Green Alpha Fund. Prior to joining Green Alpha Advisors, Mr. Deems was CFO and Treasurer of Forward Management, LLC, ReFlow Management Co., LLC, ReFlow Fund, LLC, a private investment fund, and Sutton Place Management, LLC, an administrative services company, from 1998 to June 2007. From 2004 to 2005, Mr. Deems also served as Treasurer of the Forward Funds and the Sierra Club Funds. | 55 | Mr. Deems is a Trustee of ALPS ETF Trust (16 funds); ALPS Variable Investment Trust (7 funds); Clough Funds Trust (1 fund); and Reaves Utility Income Fund (1 fund). |
* | All communications to Trustees and Officers may be directed to Financial Investors Trust c/o 1290 Broadway, Suite 1000, Denver, CO 80203. |
** | This is the period for which the Trustee or Officer began serving the Trust. Each Trustee serves an indefinite term, until such Trustees successor is elected and appointed, or such Trustee resigns or is deceased. Officers are elected on an annual basis. |
*** | Except as otherwise indicated, each individual has held the office shown or other offices in the same company for the last five years. |
**** | The Fund Complex includes all series of the Trust, currently 31, and any other investment companies for which any Trustee serves as trustee for and for which ALPS Advisors, Red Rocks, Clough Capital, RiverFront, Kotak or Smith Capital provides investment advisory services (currently 31 funds, 1 fund, 4 funds, 5 funds, 0 funds, and 0 funds, respectively). |
221 | October 31, 2020
Trustees and Officers |
October 31, 2020 (Unaudited) |
INDEPENDENT TRUSTEES (continued)
Name, Address* & Year of Birth | Position(s) Held with Fund | Term of Office** and Length of Time Served | Principal Occupation(s) During Past 5 Years*** | Number of Funds in Fund Complex Overseen by Trustee**** | Other Directorships Held by Trustee During Past 5 Years*** |
Jerry G. Rutledge, 1944 | Trustee | Mr. Rutledge was elected at a special meeting of shareholders held on August 7, 2009. | Mr. Rutledge is the President and owner of Rutledge’s Inc., a retail clothing business. Mr. Rutledge is currently Director of the American National Bank. He was from 1994 to 2007 a Regent of the University of Colorado. | 35 | Mr. Rutledge is a Trustee of Clough Global Dividend and Income Fund (1 fund), Clough Global Equity Fund (1 fund), Clough Global Opportunities Fund (1 fund) and Principal Real Estate Income Fund (1 fund). |
Michael “Ross” Shell, 1970 | Trustee | Mr. Shell was elected at a special meeting of shareholders held on August 7, 2009. | Mr. Shell is Founder and CEO of Red Idea, LLC, a strategic consulting/early stage venture firm (since June 2008). From 1999 to 2009, he was a part-owner and Director of Tesser, Inc., a brand agency. From December 2005 to May 2008, he was Director, Marketing and Investor Relations, of Woodbourne, a REIT/real estate hedge fund and private equity firm. Prior to this, from May 2004 to November 2005, he worked as a business strategy consultant; from June 2003 to April 2004, he was on the Global Client Services team of IDEO, a product design/innovation firm; and from 1999 to 2003, he was President of Tesser, Inc. Mr. Shell graduated with honors from Stanford University with a degree in Political Science. | 31 | None. |
* | All communications to Trustees and Officers may be directed to Financial Investors Trust c/o 1290 Broadway, Suite 1000, Denver, CO 80203. |
** | This is the period for which the Trustee or Officer began serving the Trust. Each Trustee serves an indefinite term, until such Trustees successor is elected and appointed, or such Trustee resigns or is deceased. Officers are elected on an annual basis. |
*** | Except as otherwise indicated, each individual has held the office shown or other offices in the same company for the last five years. |
**** | The Fund Complex includes all series of the Trust, currently 31, and any other investment companies for which any Trustee serves as trustee for and for which ALPS Advisors, Red Rocks, Clough Capital, RiverFront, Kotak or Smith Capital provides investment advisory services (currently 31 funds, 1 fund, 4 funds, 5 funds, 0 funds, and 0 funds, respectively). |
222 | October 31, 2020
Trustees and Officers |
October 31, 2020 (Unaudited) |
INTERESTED TRUSTEE
Name, Address* & Year of Birth | Position(s) Held with Fund | Term of Office** and Length of Time Served | Principal Occupation(s) During Past 5 Years*** | Number of Funds in Fund Complex Overseen by Trustee**** | Other Directorships Held by Trustee During Past 5 Years*** |
Edmund J. Burke, 1961 | Trustee | Mr. Burke was elected as Trustee at a special meeting of shareholders held on August 7, 2009. | Mr. Burke joined ALPS in 1991 and served as the President and Director of ALPS Holdings, Inc., and ALPS Advisors, Inc., and Director of ALPS Distributors, Inc., ALPS Fund Services, Inc., and ALPS Portfolio Solutions Distributor, Inc. Mr. Burke retired from ALPS in June 2019. Mr. Burke is deemed an affiliate of the Fund as defined under the 1940 Act. | 53 | Mr. Burke is a Trustee of Clough Global Dividend and Income Fund (1 fund); Clough Global Equity Fund (1 fund); Clough Global Opportunities Fund (1 fund); Clough Funds Trust (1 fund); Liberty All-Star Equity Fund (1 fund); and Director of the Liberty All-Star Growth Fund, Inc. (1 fund); and Trustee of ALPS ETF Trust (16 funds). |
* | All communications to Trustees and Officers may be directed to Financial Investors Trust c/o 1290 Broadway, Suite 1000, Denver, CO 80203. |
** | This is the period for which the Trustee or Officer began serving the Trust. Each Trustee serves an indefinite term, until such Trustees successor is elected and appointed, or such Trustee resigns or is deceased. Officers are elected on an annual basis. |
*** | Except as otherwise indicated, each individual has held the office shown or other offices in the same company for the last five years. |
**** | The Fund Complex includes all series of the Trust, currently 31, and any other investment companies for which any Trustee serves as trustee for and for which ALPS Advisors, Red Rocks, Clough Capital, RiverFront, Kotak or Smith Capital provides investment advisory services (currently 31 funds, 1 fund, 4 funds, 5 funds, 0 funds, and 0 funds, respectively). |
223 | October 31, 2020
Trustees and Officers |
October 31, 2020 (Unaudited) |
OFFICERS
Name, Address* & Year of Birth | Position(s) Held with Fund | Term of Office** and Length of Time Served | Principal Occupation(s) During Past 5 Years*** |
Bradley J. Swenson, 1972 | President | Mr. Swenson was elected President of the Trust at the June 11, 2019 meeting of the Board of Trustees. | Mr. Swenson joined ALPS in 2004 and has served as its President since June 2019. In this role, he serves as an officer to certain other closed-end and open-end investment companies. He previously served as the Chief Operating Officer of ALPS (2015-2019). Mr. Swenson also previously served as Chief Compliance Officer to ALPS, its affiliated entities, and to certain ETF, closed-end and open-end investment companies (2004-2015). Because of his position with ALPS, Mr. Swenson is deemed an affiliate of the Trust as defined under the 1940 Act. |
Jennell Panella, 1974 | Treasurer | Ms. Panella was elected Treasurer of the Trust at the September 15, 2020 meeting of the Board of Trustees | Ms. Panella joined ALPS in June 2012 and is currently Fund Controller of ALPS Fund Services, Inc. Prior to joining ALPS, Ms. Panella served as Financial Reporting Manager for Parker Global Strategies, LLC (2009-2012). Because of her position with ALPS, Ms. Panella is deemed an affiliate of the Trust as defined under the 1940 Act. Ms. Panella also serves as Assistant Treasurer of James Advantage Funds. |
Karen S. Gilomen, 1970 | Secretary | Ms. Gilomen was elected Secretary of the Trust at the December 13, 2016 meeting of the Board of Trustees. | Ms. Gilomen joined ALPS in August 2016 as Vice President and Senior Counsel. Prior to joining ALPS, Ms. Gilomen was Vice President - General Counsel & CCO of Monticello Associates, Inc. from 2010 to 2016. Because of her position with ALPS, Ms. Gilomen is deemed an affiliate of the Trust, as defined under the 1940 Act. Ms. Gilomen is also the Secretary of ALPS Variable Investment Trust and Reaves Utility Income Fund, and the Assistant Secretary of the WesMark Funds. |
Ted Uhl, 1974 | Chief Compliance Officer (“CCO”) | Mr. Uhl was elected CCO of the Trust at the June 8, 2010 meeting of the Board of Trustees. | Mr. Uhl joined ALPS in October 2006, and is currently Deputy Compliance Officer of ALPS. Prior to his current role, Mr. Uhl served as Senior Risk Manager for ALPS from October 2006 until June 2010. Before joining ALPS, Mr. Uhl served a Sr. Analyst with Enenbach and Associates (RIA), and a Sr. Financial Analyst at Sprint. Because of his position with ALPS, Mr. Uhl is deemed an affiliate of the Trust as defined under the 1940 Act. Mr. Uhl is also CCO of the Boulder Growth & Income Fund, Inc., Centre Funds, Index Funds, Reality Shares ETF Trust, Reaves Utility Income Fund and XAI Octagon Floating Rate & Alternative Income Term Trust. |
Jennifer Craig, 1973 | Assistant Secretary | Ms. Craig was elected Assistant Secretary of the Trust at the June 8, 2016 meeting of the Board of Trustees. | Ms. Craig joined ALPS in 2007 and is currently Assistant Vice President and Paralegal Manager of ALPS. Because of her position with ALPS, Ms. Craig is deemed an affiliate of the Trust as defined under the 1940 Act. Ms. Craig is also Assistant Secretary of Clough Global Dividend and Income Fund, Clough Global Equity Fund, Clough Global Opportunities Fund, Principal Real Estate Income Fund, Liberty All-Star Equity Fund and Liberty All-Star Growth Fund, Inc. |
* | All communications to Trustees and Officers may be directed to Financial Investors Trust c/o 1290 Broadway, Suite 1000, Denver, CO 80203. |
** | This is the period for which the Trustee or Officer began serving the Trust. Each Trustee serves an indefinite term, until such Trustees successor is elected and appointed, or such Trustee resigns or is deceased. Officers are elected on an annual basis. |
*** | Except as otherwise indicated, each individual has held the office shown or other offices in the same company for the last five years. |
**** | The Fund Complex includes all series of the Trust, currently 31, and any other investment companies for which any Trustee serves as trustee for and for which ALPS Advisors, Red Rocks, Clough Capital, RiverFront, Kotak or Smith Capital provides investment advisory services (currently 31 funds, 1 fund, 4 funds, 5 funds, 0 funds, and 0 funds, respectively). |
224 | October 31, 2020
Privacy Policy |
October 31, 2020 (Unaudited) |
FACTS | WHAT DO THE FUNDS DO WITH YOUR PERSONAL INFORMATION? |
WHY? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
WHAT? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:
● Social Security number and account transactions ● Account balances and transaction history ● Wire transfer instructions |
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 the Funds choose to share; and whether you can limit this sharing. |
REASONS WE CAN SHARE YOUR PERSONAL INFORMATION | DO THE 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 | No | We do not share. |
For joint marketing with other financial companies | No | We do not 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 do not share. |
For non-affiliates to market to you | No | We do not share. |
225 | October 31, 2020
Privacy Policy |
October 31, 2020 (Unaudited) |
WHO WE ARE | |
Who is providing this notice? | Financial Investors Trust |
WHAT WE DO | |
How do the 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. |
How do the Funds collect my personal information? | We collect your personal information, for example, when you
● open an account ● provide account information or give us your contact information ● make a wire transfer or deposit money |
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. |
Non-affiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
● The Funds do 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.
● The Funds do not jointly market. |
OTHER IMPORTANT | |
INFORMATION | |
California Residents | If your account has a California home address, your personal information will not be disclosed to nonaffiliated third parties except as permitted by applicable California law, and we will limit sharing such personal information with our affiliates to comply with California privacy laws that apply to us. |
Vermont Residents | The State of Vermont requires financial institutions to obtain your consent prior to sharing personal information that they collect about you with affiliated companies and nonaffiliated third parties other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with nonaffiliated third parties or other affiliated companies unless you provide us with your written consent to share such information. |
QUESTIONS? | Call 1-866-759-5679 or go to www.alpsfunds.com |
226 | October 31, 2020
Intentionally Left Blank
Item 2. Code of Ethics.
(a) | The Registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or any persons performing similar functions on behalf of the Registrant. |
(b) | Not applicable. |
(c) | During the period covered by this report, no amendments to the provisions of the code of ethics described in Item 2(a) above were made. |
(d) | During the period covered by this report, no implicit or explicit waivers to the provisions of the code of ethics described in Item 2(a) above were granted. |
(e) | Not applicable. |
(f) | The Registrant’s Code of Ethics is attached as an Exhibit to this report. |
Item 3. Audit Committee Financial Expert.
The Board of Trustees of the Registrant has determined that the Registrant has at least one Audit Committee Financial Expert serving on its audit committee. The Board of Trustees of the Registrant has designated Jeremy W. Deems as the Registrant’s “Audit Committee Financial Expert.” Mr. Deems is “independent” as defined in paragraph (a)(2) of Item 3 to Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a) | Audit Fees: For the Registrant’s fiscal years ended October 31, 2020 and October 31, 2019, the aggregate fees billed for professional services rendered by the principal accountant for the audit of the Registrant’s annual financial statements were $218,625 and $208,300, respectively. |
(b) | Audit-Related Fees: For the Registrant’s fiscal years ended October 31, 2020 and October 31, 2019, the aggregate fees billed for assurance and related services by the principal accountant that were 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 $7,500 and $19,500, respectively. |
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(c) | Tax Fees: For the Registrant’s fiscal years ended October 31, 2020 and October 31, 2019, the aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning were $59,015 and $58,880, respectively. The fiscal year 2020 and 2019 tax fees were for services for dividend calculation, excise tax preparation and tax return preparation. |
(d) | All Other Fees: For the Registrant’s fiscal years ended October 31, 2020 and October 31, 2019, no fees were billed to Registrant by the principal accountant for services other than the services reported in paragraphs (a) through (c) of this Item. |
(e)(1) | Audit Committee Pre-Approval Policies and Procedures: All services to be performed by the Registrant’s principal accountant must be pre-approved by the Registrant’s audit committee. The Chairman of the Audit Committee may pre-approve non-audit services to be performed by the Registrant’s principal accountant on an interim basis, subject to ratification by the Audit Committee at its next regularly scheduled meeting. |
(e)(2) | No services described in paragraphs (b) through (d) of this Item were approved by the Registrant’s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. |
(f) | Not applicable. |
(g) | The aggregate non-audit fees billed by the Registrant’s accountant for services rendered to the Registrant, and rendered to the Registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant, were $50,895 in the fiscal year ended October 31, 2020 and $69,447 in the fiscal year ended October 31, 2019. These fees consisted of non-audit fees billed to (i) the Registrant of $50,895 in the fiscal year ended October 31, 2020 and $58,880 in the fiscal year ended October 31, 2019 as described in response to paragraph (c) above and (ii) to ALPS Fund Services, Inc. (“AFS”), an entity under common control with ALPS Advisors, Inc., the Registrant’s investment adviser, of $0 in the fiscal year ended October 31, 2020 and $10,567 in the fiscal year ended October 31, 2019. The non-audit fees billed to AFS related to SSAE 16 services and other compliance-related matters. |
(h) | The Registrant’s audit committee has considered whether the provision of non-audit services that were rendered to the Registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant that were not pre-approved |
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pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant’s independence. The Registrant’s audit committee determined that the provision of such non-audit services is compatible with maintaining the principal accountant’s independence. |
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) | Schedule of Investments is included as part of the Reports to Stockholders filed under Item 1 of this Form N-CSR. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to the Registrant.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to the Registrant.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to the Registrant.
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, where those changes were implemented after the Registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K, or this Item.
Item 11. Controls and Procedures.
(a) | The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report. |
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(b) | There was no change in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable to the Registrant.
Item 13. Exhibits.
(a)(2) | The certifications required by Rule 30a-2(a) of the Investment Company Act of 1940, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto as Exhibit 99.Cert. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable to the Registrant. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FINANCIAL INVESTORS TRUST
By: | /s/ Bradley J. Swenson | |
Bradley J. Swenson (Principal Executive Officer) | ||
President | ||
Date: | January 7, 2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
FINANCIAL INVESTORS TRUST
By: | /s/ Bradley J. Swenson | |
Bradley J. Swenson (Principal Executive Officer) | ||
President | ||
Date: | January 7, 2021 | |
By: | /s/ Jennell Panella | |
Jennell Panella (Principal Financial Officer) | ||
Treasurer | ||
Date: | January 7, 2021 |
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