Page
|
||
Portfolio Allocation
|
1
|
|
Schedule of Investments
|
2
|
|
Statement of Assets and Liabilities
|
8
|
|
Statement of Operations
|
9
|
|
Statement of Changes in Net Assets
|
10
|
|
Financial Highlights
|
11
|
|
Notes to Financial Statements
|
12
|
|
Approval of Advisory Agreement and Board Consideration
|
18
|
|
Expense Example
|
21
|
|
Information About Portfolio Holdings
|
22
|
|
Information About Proxy Voting
|
22
|
|
Information About the Fund’s Trustees
|
22
|
Percentage of
|
|
Sector
|
Net Assets
|
Consumer Discretionary
|
21.1%
|
Utilities
|
15.0
|
Financials
|
14.5
|
Consumer Staples
|
14.4
|
Information Technology
|
13.8
|
Industrials
|
7.5
|
Telecommunication Services
|
5.7
|
Health Care
|
5.1
|
Materials
|
1.3
|
Energy
|
1.2
|
Short-Term Investments
|
0.3
|
Other Assets in Excess of Liabilities
|
0.1
|
Total
|
100.0%
|
Shares
|
Security Description
|
Value
|
|||||
COMMON STOCKS – 97.1%
|
|||||||
Consumer Discretionary – 21.1%
|
|||||||
4,032
|
Abercrombie & Fitch Company – Class A
|
$
|
48,102
|
||||
327
|
Advance Auto Parts, Inc.
|
48,481
|
|||||
9,937
|
Ascena Retail Group, Inc. (a)
|
42,332
|
|||||
76
|
AutoZone, Inc. (a)
|
54,952
|
|||||
5,724
|
Barnes & Noble, Inc.
|
52,947
|
|||||
1,393
|
Bed Bath & Beyond, Inc.
|
54,968
|
|||||
1,162
|
Best Buy Company, Inc.
|
57,112
|
|||||
1,011
|
Big Lots, Inc.
|
49,215
|
|||||
3,120
|
Bloomin’ Brands, Inc.
|
61,558
|
|||||
876
|
Brinker International, Inc.
|
38,509
|
|||||
675
|
Burlington Stores, Inc. (a)
|
65,671
|
|||||
18
|
Charter Communications, Inc. – Class A (a)
|
5,892
|
|||||
171
|
Chipotle Mexican Grill, Inc. (a)
|
76,184
|
|||||
764
|
Choice Hotels International, Inc.
|
47,826
|
|||||
76
|
Comcast Corporation – Class A
|
2,857
|
|||||
381
|
Cracker Barrel Old Country Store, Inc.
|
60,674
|
|||||
819
|
Darden Restaurants, Inc.
|
68,526
|
|||||
3,611
|
Denny’s Corporation (a)
|
44,668
|
|||||
1,096
|
Dick’s Sporting Goods, Inc.
|
53,331
|
|||||
1,234
|
Dillard’s, Inc. – Class A
|
64,464
|
|||||
316
|
DISH Network Corporation – Class A (a)
|
20,063
|
|||||
739
|
Dollar General Corporation
|
51,530
|
|||||
770
|
Dollar Tree, Inc. (a)
|
60,414
|
|||||
267
|
Domino’s Pizza, Inc.
|
49,208
|
|||||
1,041
|
Dunkin’ Brands Group, Inc.
|
56,922
|
|||||
428
|
Expedia, Inc.
|
54,001
|
|||||
5,030
|
Ford Motor Company
|
58,549
|
|||||
2,657
|
GameStop Corporation – Class A
|
59,915
|
|||||
2,420
|
Gap, Inc.
|
58,782
|
|||||
1,784
|
General Motors Company
|
63,082
|
|||||
2,879
|
Hanesbrands, Inc.
|
59,768
|
|||||
1,130
|
Hilton Worldwide Holdings, Inc.
|
66,060
|
|||||
446
|
Home Depot, Inc.
|
65,486
|
|||||
1,090
|
Hyatt Hotels Corporation – Class A (a)
|
58,838
|
|||||
9,861
|
J.C. Penney Company, Inc. (a)
|
60,744
|
|||||
327
|
Jack in the Box, Inc.
|
33,262
|
Shares
|
Security Description
|
Value
|
|||||
COMMON STOCKS (Continued)
|
|||||||
Consumer Discretionary (Continued)
|
|||||||
1,402
|
Kohl’s Corporation
|
$
|
55,814
|
||||
1,039
|
L Brands, Inc.
|
48,937
|
|||||
3,083
|
La Quinta Holdings, Inc. (a)
|
41,682
|
|||||
793
|
Lowe’s Companies, Inc.
|
65,193
|
|||||
1,902
|
Macy’s, Inc.
|
56,375
|
|||||
729
|
Marriott International, Inc. – Class A
|
68,657
|
|||||
159
|
McDonald’s Corporation
|
20,608
|
|||||
427
|
Netflix, Inc. (a)
|
63,115
|
|||||
4,441
|
New York Times Company
|
63,950
|
|||||
1,141
|
NIKE, Inc. – Class B
|
63,588
|
|||||
1,365
|
Nordstrom, Inc.
|
63,568
|
|||||
12,375
|
Office Depot, Inc.
|
57,729
|
|||||
3,359
|
Overstock.com, Inc. (a)
|
57,775
|
|||||
282
|
Panera Bread Company – Class A (a)
|
73,847
|
|||||
638
|
Papa John’s International, Inc.
|
51,066
|
|||||
42
|
Priceline Group, Inc. (a)
|
74,759
|
|||||
990
|
Red Robin Gourmet Burgers, Inc. (a)
|
57,865
|
|||||
723
|
Ross Stores, Inc.
|
47,624
|
|||||
17,207
|
Ruby Tuesday, Inc. (a)
|
48,352
|
|||||
6,419
|
Sears Holdings Corporation (a)
|
73,754
|
|||||
6,588
|
Staples, Inc.
|
57,777
|
|||||
718
|
Starbucks Corporation
|
41,924
|
|||||
800
|
Target Corporation
|
44,152
|
|||||
1,484
|
Texas Roadhouse, Inc.
|
66,083
|
|||||
792
|
TJX Companies, Inc.
|
62,631
|
|||||
1,175
|
V.F. Corporation
|
64,590
|
|||||
2,773
|
Wendy’s Company
|
37,741
|
|||||
342
|
Whirlpool Corporation
|
58,595
|
|||||
376
|
Wyndham Worldwide Corporation
|
31,693
|
|||||
737
|
Yum! Brands, Inc.
|
47,094
|
|||||
3,541,431
|
|||||||
Consumer Staples – 14.4%
|
|||||||
1,472
|
Campbell Soup Company
|
84,257
|
|||||
1,332
|
Clorox Company
|
179,594
|
|||||
2,648
|
Coca-Cola Company
|
112,381
|
|||||
2,164
|
Colgate-Palmolive Company
|
158,383
|
Shares
|
Security Description
|
Value
|
|||||
COMMON STOCKS (Continued)
|
|||||||
Consumer Staples (Continued)
|
|||||||
2,357
|
Conagra Brands, Inc.
|
$
|
95,081
|
||||
878
|
Costco Wholesale Corporation
|
147,232
|
|||||
262
|
CVS Health Corporation
|
20,567
|
|||||
2,176
|
Dr Pepper Snapple Group, Inc.
|
213,074
|
|||||
2,623
|
General Mills, Inc.
|
154,783
|
|||||
1,528
|
Hershey Company
|
166,934
|
|||||
1,516
|
Kellogg Company
|
110,077
|
|||||
1,641
|
Kraft Heinz Company
|
149,019
|
|||||
2,667
|
Kroger Company
|
78,650
|
|||||
1,108
|
Molson Coors Brewing Company – Class B
|
106,047
|
|||||
1,492
|
Pepsico, Inc.
|
166,895
|
|||||
1,700
|
Procter & Gamble Company
|
152,745
|
|||||
6,502
|
Rite Aid Corporation (a)
|
27,633
|
|||||
5,107
|
SUPERVALU, Inc. (a)
|
19,713
|
|||||
2,025
|
Tyson Foods, Inc. – Class A
|
124,963
|
|||||
257
|
Walgreens Boots Alliance, Inc.
|
21,344
|
|||||
257
|
Wal-Mart Stores, Inc.
|
18,525
|
|||||
3,558
|
Whole Foods Market, Inc.
|
105,744
|
|||||
2,413,641
|
|||||||
Financials – 14.5%
|
|||||||
1,798
|
Allstate Corporation
|
146,519
|
|||||
3,152
|
Bank of America Corporation
|
74,356
|
|||||
4,159
|
BB&T Corporation
|
185,907
|
|||||
1,631
|
Capital One Financial Corporation
|
141,343
|
|||||
4,088
|
Charles Schwab Corporation
|
166,831
|
|||||
3,244
|
Citigroup, Inc.
|
194,056
|
|||||
3,997
|
Citizens Financial Group, Inc.
|
138,096
|
|||||
3,929
|
E*TRADE Financial Corporation (a)
|
137,083
|
|||||
6,203
|
Fifth Third Bancorp
|
157,556
|
|||||
278
|
JP Morgan Chase & Company
|
24,420
|
|||||
9,112
|
KeyCorp
|
162,011
|
|||||
717
|
Lincoln National Corporation
|
46,928
|
|||||
888
|
MetLife, Inc.
|
46,904
|
|||||
812
|
PNC Financial Services Group, Inc.
|
97,635
|
|||||
322
|
Primerica, Inc.
|
26,469
|
|||||
2,000
|
Progressive Corporation
|
78,360
|
Shares
|
Security Description
|
Value
|
|||||
COMMON STOCKS (Continued)
|
|||||||
Financials (Continued)
|
|||||||
688
|
Prudential Financial, Inc.
|
$
|
73,396
|
||||
6,589
|
Regions Financial Corporation
|
95,738
|
|||||
2,591
|
SunTrust Banks, Inc.
|
143,282
|
|||||
2,322
|
TD Ameritrade Holding Corporation
|
90,233
|
|||||
619
|
Travelers Companies, Inc.
|
74,614
|
|||||
1,402
|
US Bancorp
|
72,203
|
|||||
873
|
Wells Fargo & Company
|
48,591
|
|||||
2,422,531
|
|||||||
Health Care – 5.1%
|
|||||||
1,317
|
Aetna, Inc.
|
167,983
|
|||||
1,085
|
Anthem, Inc.
|
179,437
|
|||||
122
|
Cigna Corporation
|
17,872
|
|||||
529
|
Humana, Inc.
|
109,048
|
|||||
2,503
|
Johnson & Johnson
|
311,749
|
|||||
441
|
UnitedHealth Group, Inc.
|
72,329
|
|||||
858,418
|
|||||||
Industrials – 7.5%
|
|||||||
1,482
|
Alaska Air Group, Inc.
|
136,670
|
|||||
196
|
Allegiant Travel Company
|
31,409
|
|||||
2,019
|
American Airlines Group, Inc.
|
85,404
|
|||||
1,707
|
Delta Air Lines, Inc.
|
78,454
|
|||||
980
|
FedEx Corporation
|
191,247
|
|||||
5,856
|
General Electric Company
|
174,509
|
|||||
7,635
|
JetBlue Airways Corporation (a)
|
157,357
|
|||||
3,248
|
Southwest Airlines Company
|
174,612
|
|||||
153
|
Spirit Airlines, Inc. (a)
|
8,120
|
|||||
822
|
United Continental Holdings, Inc. (a)
|
58,066
|
|||||
1,454
|
United Parcel Service, Inc. – Class B
|
156,014
|
|||||
1,251,862
|
|||||||
Information Technology – 13.8%
|
|||||||
413
|
Alphabet, Inc. – Class C (a)
|
342,608
|
|||||
97
|
Amazon.com, Inc. (a)
|
85,994
|
|||||
3,570
|
Apple, Inc.
|
512,866
|
|||||
12,883
|
eBay, Inc. (a)
|
432,482
|
Shares
|
Security Description
|
Value
|
|||||
COMMON STOCKS (Continued)
|
|||||||
Information Technology (Continued)
|
|||||||
714
|
Facebook, Inc. – Class A (a)
|
$
|
101,424
|
||||
20,225
|
HP, Inc.
|
361,623
|
|||||
3,022
|
Microsoft Corporation
|
199,029
|
|||||
1,330
|
Twitter, Inc. (a)
|
19,883
|
|||||
5,435
|
Yahoo!, Inc. (a)
|
252,239
|
|||||
2,308,148
|
|||||||
Telecommunication Services – 5.7%
|
|||||||
3,029
|
AT&T, Inc.
|
125,855
|
|||||
1,533
|
CenturyLink, Inc.
|
36,133
|
|||||
4,359
|
Frontier Communications Corporation
|
9,328
|
|||||
17,127
|
Sprint Corporation (a)
|
148,662
|
|||||
3,664
|
T-Mobile US, Inc. (a)
|
236,658
|
|||||
3,248
|
Verizon Communications, Inc.
|
158,340
|
|||||
34,694
|
Vonage Holdings Corporation (a)
|
219,266
|
|||||
2,783
|
Windstream Holdings, Inc.
|
15,167
|
|||||
949,409
|
|||||||
Utilities – 15.0%
|
|||||||
2,022
|
Ameren Corporation
|
110,381
|
|||||
1,250
|
American Electric Power Company, Inc.
|
83,913
|
|||||
2,296
|
Atmos Energy Corporation
|
181,361
|
|||||
6,248
|
CenterPoint Energy, Inc.
|
172,257
|
|||||
2,207
|
CMS Energy Corporation
|
98,741
|
|||||
1,257
|
Consolidated Edison, Inc.
|
97,619
|
|||||
1,759
|
Dominion Resources, Inc.
|
136,446
|
|||||
1,075
|
DTE Energy Company
|
109,768
|
|||||
1,027
|
Duke Energy Corporation
|
84,224
|
|||||
1,834
|
Edison International
|
146,005
|
|||||
1,108
|
Entergy Corporation
|
84,164
|
|||||
238
|
Eversource Energy
|
13,990
|
|||||
2,240
|
Exelon Corporation
|
80,595
|
|||||
2,160
|
FirstEnergy Corporation
|
68,731
|
|||||
1,333
|
NextEra Energy, Inc.
|
171,117
|
|||||
5,424
|
NiSource, Inc.
|
129,037
|
|||||
1,747
|
PG&E Corporation
|
115,931
|
|||||
4,236
|
PPL Corporation
|
158,384
|
Shares
|
Security Description
|
Value
|
|||||
COMMON STOCKS (Continued)
|
|||||||
Utilities (Continued)
|
|||||||
1,202
|
Public Service Enterprise Group, Inc.
|
$
|
53,309
|
||||
1,430
|
Sempra Energy
|
158,015
|
|||||
3,253
|
Southern Company
|
161,934
|
|||||
2,278
|
Xcel Energy, Inc.
|
101,257
|
|||||
2,517,179
|
|||||||
TOTAL COMMON STOCKS (Cost $15,386,880)
|
16,262,619
|
||||||
EXCHANGE TRADED FUNDS – 2.5%
|
|||||||
Energy – 1.2%
|
|||||||
1,449
|
Energy Select Sector SPDR ETF
|
101,285
|
|||||
2,644
|
iShares U.S. Energy ETF
|
101,900
|
|||||
203,185
|
|||||||
Materials – 1.3%
|
|||||||
1,264
|
iShares U.S. Basic Materials ETF
|
112,673
|
|||||
2,149
|
Materials Select Sector SPDR ETF
|
112,629
|
|||||
225,302
|
|||||||
TOTAL EXCHANGE TRADED FUNDS (Cost $422,857)
|
428,487
|
||||||
SHORT-TERM INVESTMENTS – 0.3%
|
|||||||
58,423
|
Fidelity Investments Money Market
|
||||||
Government Portfolio, Class I – 0.56%*
|
58,423
|
||||||
TOTAL SHORT-TERM INVESTMENTS ($58,423)
|
58,423
|
||||||
TOTAL INVESTMENTS (Cost $15,868,160) – 99.9%
|
16,749,529
|
||||||
Other Assets in Excess of Liabilities – 0.1%
|
8,748
|
||||||
NET ASSETS – 100.0%
|
$
|
16,758,277
|
ASSETS
|
||||
Investments in securities, at value (Cost $15,868,160)
|
$
|
16,749,529
|
||
Dividends and interest receivable
|
17,982
|
|||
Total assets
|
16,767,511
|
|||
LIABILITIES
|
||||
Management fees payable
|
9,234
|
|||
Total liabilities
|
9,234
|
|||
NET ASSETS
|
$
|
16,758,277
|
||
Net assets consist of:
|
||||
Paid-in capital
|
$
|
15,825,775
|
||
Undistributed (accumulated) net investment income (loss)
|
55,972
|
|||
Accumulated net realized gain (loss) on investments
|
(4,839
|
)
|
||
Net unrealized appreciation (depreciation) on investments
|
881,369
|
|||
Net assets
|
$
|
16,758,277
|
||
Net asset value:
|
||||
Net assets
|
$
|
16,758,277
|
||
Shares outstanding^
|
600,000
|
|||
Net asset value, offering and redemption price per share
|
$
|
27.93
|
INCOME
|
||||
Dividends
|
$
|
110,517
|
||
Interest
|
116
|
|||
Total investment income
|
110,633
|
|||
EXPENSES
|
||||
Management fees
|
32,680
|
|||
Total expenses
|
32,680
|
|||
Net investment income (loss)
|
77,953
|
|||
REALIZED & UNREALIZED GAIN (LOSS) ON INVESTMENTS
|
||||
Net realized gain (loss) on investments
|
(4,839
|
)
|
||
Change in unrealized appreciation (depreciation)
|
||||
of investments
|
881,369
|
|||
Net realized and unrealized gain (loss) on investments
|
876,530
|
|||
Net increase (decrease) in net assets
|
||||
resulting from operations
|
$
|
954,483
|
Period Ended
|
||||
March 31, 2017
|
||||
(Unaudited)*
|
||||
OPERATIONS
|
||||
Net investment income (loss)
|
$
|
77,953
|
||
Net realized gain (loss) on investments
|
(4,839
|
)
|
||
Change in unrealized appreciation (depreciation)
|
||||
of investments
|
881,369
|
|||
Net increase (decrease) in net assets
|
||||
resulting from operations
|
954,483
|
|||
DISTRIBUTIONS TO SHAREHOLDERS
|
||||
From net investment income
|
(21,981
|
)
|
||
Total distributions to shareholders
|
(21,981
|
)
|
||
CAPITAL SHARE TRANSACTIONS
|
||||
Proceeds from subscriptions
|
15,825,775
|
|||
Net increase (decrease) in net assets derived
|
||||
from capital share transactions (a)
|
15,825,775
|
|||
Net increase (decrease) in net assets
|
16,758,277
|
|||
NET ASSETS
|
||||
Beginning of period
|
$
|
—
|
||
End of period
|
$
|
16,758,277
|
||
Undistributed (accumulated) net
|
||||
investment income (loss)
|
$
|
55,972
|
(a)
|
A summary of capital share transactions is as follows:
|
|||||
Period Ended
|
||||||
March 31, 2017
|
||||||
(Unaudited)*
|
||||||
|
Shares
|
|||||
Subscriptions
|
600,000
|
|||||
Net increase (decrease)
|
600,000
|
Period Ended
|
||||
March 31, 2017
|
||||
(Unaudited)(1)
|
||||
Net asset value, beginning of period
|
$
|
25.00
|
||
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
|
||||
Net investment income (loss)(2)
|
0.18
|
|||
Net realized and unrealized gain (loss) on investments
|
2.80
|
|||
Total from investment operations
|
2.98
|
|||
DISTRIBUTIONS:
|
||||
Distributions from:
|
||||
Net investment income
|
(0.05
|
)
|
||
Total distributions
|
(0.05
|
)
|
||
Net asset value, end of period
|
$
|
27.93
|
||
Total return
|
11.92
|
%(3)
|
||
SUPPLEMENTAL DATA:
|
||||
Net assets at end of period (000’s)
|
$
|
16,758
|
||
RATIOS TO AVERAGE NET ASSETS:
|
||||
Expenses to average net assets
|
0.65
|
%(4)
|
||
Net investment income (loss) to average net assets
|
1.54
|
%(4)
|
||
Portfolio turnover rate(5)
|
10
|
%(3)
|
(1)
|
Commencement of operations on October 31, 2016.
|
(2)
|
Calculated based on average shares outstanding during the period.
|
(3)
|
Not annualized.
|
(4)
|
Annualized.
|
(5)
|
Excludes the impact of in-kind transactions.
|
A.
|
Security Valuation. All equity securities, including domestic and foreign common stocks, preferred stocks, and exchange traded funds that are traded on a national securities exchange, except those listed on the NASDAQ Global Market® (“NASDAQ”) are valued at the last reported sale price on the exchange on which the security is principally traded. Securities traded on NASDAQ will be valued at the NASDAQ Official Closing Price (“NOCP”). If, on a particular day, an exchange-traded or NASDAQ security does not trade, then the mean between the most recent quoted bid and asked prices will be used. All equity securities that are not traded on a listed exchange are valued at the last sale price in the over-the-counter market. If a non-exchange traded security does not trade on a particular day, then the mean between the last quoted closing bid and asked price will be used. Prices denominated in foreign currencies are converted to U.S. dollar equivalents at the current exchange rate, which approximates fair value. Investments in mutual funds, including money market funds, are valued at their net asset value (“NAV”) per share. Short-term securities that have maturities of less than 60 days at the time of purchase are valued at amortized cost, which, when combined with accrued interest, approximates fair value.
|
Securities for which quotations are not readily available are valued at their respective fair values in accordance with pricing procedures adopted by the Fund’s Board of Trustees (the “Board”). When a security is “fair valued,” consideration is given to the facts and circumstances relevant to the particular situation, including a review of various factors set forth in the pricing procedures adopted by the Board. The use of fair value pricing by the Fund may cause the NAV of its shares to differ significantly from the NAV that would be calculated without regard to such considerations.
|
|
As described above, the Fund utilizes various methods to measure the fair value of its investments on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:
|
Level 1 –
|
Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
|
|
Level 2 –
|
Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
|
|
Level 3 –
|
Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available; representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
|
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
|
|
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
|
The following is a summary of the inputs used to value the Fund’s investments as of March 31, 2017:
|
Assets^
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Common Stocks
|
$
|
16,262,619
|
$
|
—
|
$
|
—
|
$
|
16,262,619
|
|||||||||
Exchange Traded Funds
|
428,487
|
—
|
—
|
428,487
|
|||||||||||||
Short-Term
|
|||||||||||||||||
Investments
|
58,423
|
—
|
—
|
58,423
|
|||||||||||||
Total Investments
|
|||||||||||||||||
in Securities
|
$
|
16,749,529
|
$
|
—
|
$
|
—
|
$
|
16,749,529
|
^ See Schedule of Investments for breakout of investments by Sector.
|
||
Transfers between levels are recognized at the end of the reporting period. During the period ended March 31, 2017 the Fund did not recognize any transfers to or from Levels 1, 2, or 3.
|
||
B.
|
Federal Income Taxes. The Fund complies with the requirements of subchapter M of the Internal Revenue Code of 1986, as amended, necessary to qualify as regulated investment company and distributes substantially all net taxable investment income and net realized gains to shareholders in a manner which results in no tax cost to the Fund. Therefore, no federal income tax provision is required. As of and during the period ended March 31, 2017, the Fund did not have any tax positions that did not meet the “more-likely-than-not” threshold of being sustained by the applicable tax authority.
|
|
As of and during the period ended March 31, 2017, the Fund did not have liabilities for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits on uncertain tax positions as income tax expense in the Statement of Operations. During the period ended March 31, 2017, the Fund did not incur any interest or penalties.
|
||
C.
|
Security Transactions and Investment Income. Investment securities transactions are accounted for on the trade date. Gains and losses realized on sales of securities are determined on a specific identification basis. Dividend income is recorded on the ex-dividend date. Interest income is recorded on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable tax rules and regulations.
|
|
D.
|
Distributions to Shareholders. Distributions to shareholders from net investment income and net realized gain on securities Fund are declared and paid by the Fund on an annual basis. Distributions are recorded on the ex-dividend date.
|
E.
|
Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.
|
|
F.
|
Share Valuation. The NAV per share of the Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash and other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding of the Fund, rounded to the nearest cent. The Fund’s shares will not be priced on the days on which the New York Stock Exchange Acra, Inc. (“NYSE”) is closed for trading. The offering and redemption price per share for the Fund is equal to the Fund’s NAV per share.
|
|
G.
|
Guarantees and Indemnifications. In the normal course of business, the Fund enters into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
|
|
H.
|
Subsequent Events. In preparing these financial statements, Management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. There were no events or transactions that occurred during the period subsequent to March 31, 2017, that materially impacted the amounts or disclosures in the Fund’s financial statements.
|
Beginning
|
Ending
|
||
Account Value
|
Account Value
|
Expenses Paid
|
|
October 31, 2016
|
March 31, 2017
|
During the Period(1)
|
|
Actual
|
$1,000.00
|
$1,119.20
|
$2.87
|
Hypothetical (5% annual
|
$1,000.00
|
$1,018.12
|
$2.73
|
return before expenses)
|
(1)
|
The dollar amounts shown as expenses paid during the period are equal to the annualized period expense ratio, 0.65%, multiplied by the average value during the period, multiplied by the number of days in the current period, 152 days, and divided by the number of days in the most recent twelve-month period, 365 days.
|
(a)
|
The Registrant’s President (principal executive officer) and Treasurer (principal financial officer) have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d‑15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.
|
(b)
|
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of 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.
|
(a)
|
(1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Not applicable.
|
(b)
|
Certifications pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002. Furnished herewith.
|
1.
|
I have reviewed this report on Form N-CSR of the ETF Series Solutions;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of 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; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: June 1, 2017
|
/s/ Paul R. Fearday
Paul R. Fearday
President (principal executive officer) ETF Series Solutions
|
1.
|
I have reviewed this report on Form N-CSR of the ETF Series Solutions;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of 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; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: June 1, 2017
|
/s/ Kristen M. Weitzel
Kristen M. Weitzel
Treasurer (principal financial officer) ETF Series Solutions
|
/s/ Paul R. Fearday
Paul R. Fearday
President (principal executive officer)
ETF Series Solutions
|
/s/ Kristen M. Weitzel
Kristen M. Weitzel
Treasurer (principal financial officer)
ETF Series Solutions
|
Dated: June 1, 2017
|
Dated: June 1, 2017
|
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