N-CSRS 1 d235590dncsrs.htm SPIRIT OF AMERICA INVESTMENT FUND INC SPIRIT OF AMERICA INVESTMENT FUND INC

 

 

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: 811-08231

 

 

SPIRIT OF AMERICA INVESTMENT FUND, INC.

(Exact name of registrant as specified in charter)

 

 

477 Jericho Turnpike

P.O. Box 9006

Syosset, NY 11791-9006

(Address of principal executive offices) (Zip code)

 

 

Mr. David Lerner

David Lerner Associates

477 Jericho Turnpike

P.O. Box 9006

Syosset, NY 11791-9006

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: 1-516-390-5565

Date of fiscal year end: December 31

Date of reporting period: June 30, 2016

 

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 

Item 1. Reports to Stockholders.

LOGO

 

SEMI-ANNUAL REPORT

JUNE 30, 2016

Real Estate Income and Growth Fund

Large Cap Value Fund

Municipal Tax Free Bond Fund

Income Fund

Income and Opportunity Fund

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND

MANAGEMENT DISCUSSION (UNAUDITED)

 

Dear Shareholder,

We are happy to have this opportunity to share with you, our shareholders, the Semi-Annual Report for the Spirit of America Real Estate Income and Growth Fund. This includes a review of our performance in the first six months of 2016, in addition to a discussion of the economy, and our thoughts on the securities markets.

At Spirit of America Investment Funds, our team takes a comprehensive approach to investing. We analyze economic trends, and evaluate industries that could benefit from those trends. Based upon this analysis, we select investments we believe are positioned to provide the best potential returns. Our portfolio managers utilize their extensive backgrounds in their respective fields to carefully scrutinize each security in the portfolio on an ongoing basis.

The Spirit of America Real Estate Income and Growth Fund’s investment philosophy continues to be to seek enduring value in the infrastructure of America by investing in real estate companies which own office buildings, shopping malls, hotels, apartments, and other income producing assets. Our goal is to maximize total return to shareholders by benefitting from the income generated through the rental of these properties, while also participating in potential long term appreciation of asset values.

We thank you for your support, and look forward to your future investment in the Spirit of America Real Estate Income and Growth Fund.

Sincerely,

 

LOGO    LOGO   LOGO      LOGO
   David Lerner      Douglas Revello
   President      Portfolio Manager
   Spirit of America Investment Fund, Inc.     

 

    1   

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND

MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Economic Summary

In December 2015, the Federal Reserve raised its benchmark federal-funds rate from near zero to a range between 0.25% and 0.50%. Officials signaled in April and May 2016 that they were getting closer to another increase. However, in June, Fed members decided that it was “prudent to wait” on an interest rate hike until they have additional data on the consequences of Britain’s vote on EU membership. Policymakers discussed the lack of evidence of rising inflation, and cited a severe slowdown in hiring in May by U.S. employers as a reason for leaving interest rates steady.

The latest employment data released by the U.S. Bureau of Labor Statistics shows the total nonfarm payroll employment rose by 287,000 in June, beating expectations to be the largest monthly gain since last October. This was a dramatic increase in comparison to the disappointing May employment increase of only 11,000. The unemployment rate rose by two-tenths of a percentage point to 4.9%, as more people entered the labor force, a sign of confidence in the jobs market.

The U.S. Department of Commerce revised the gross domestic product (GDP) for the 1st quarter of 2016 to a 1.1% annual rate, up from the 0.8% estimate previously reported. Gains in exports and investment in software partially offset weak consumer spending. This is still a lower rate than the 1.4% growth in the 4th quarter of 2015, however retail sales and home sales in April and May suggest the economy has gained momentum in the 2nd quarter.

Market Commentary

Despite the turmoil caused by the Brexit vote in late June, the S&P 500 was up 3.84% and the Dow Jones Industrial Average was up 4.31% for the first six months of 2016. The Nasdaq Composite was down 2.61% over the same time period.

Real Estate Investment Trusts (“REITs”) outperformed the broader market in the first half of the year, as sector fundamentals and capital markets remained healthy during a period of global uncertainty. Over the first six months of the year, the FTS/NAREIT All REIT Index had a total return of 13.7%, beating the S&P 500 over the same time period. The yield on the 10-year Treasury note during the same period fell by 0.8%. Strong sector performances from the specific REIT segments included data center REITs with returns of 37.8%, free-standing net lease retail returns of 34.5%, single-family home REITs with returns of 25% and industrial REITs with returns of 22.9%.

Fund Summary

The Spirit of America Real Estate Income and Growth Fund (the “Fund”), aims to provide high total return through a combination of capital appreciation and dividend income.

As of June 30, 2016, the Fund was invested over 93% in REITs. A REIT is a company that owns or finances income-producing real estate. REITs provide investors regular income streams, diversification and long-term capital appreciation. REITs typically pay out all of their taxable income as dividends to shareholders. REITs are tied to almost all aspects of the economy, including apartments, hospitals, hotels, industrial facilities, infrastructure, nursing homes, offices, shopping malls, storage centers, and student housing.

Return Summary

The Fund had a total six month return of 9.33% (no load, gross of fees). This compares to the 13.56% returned by its benchmark, the MSCI US REIT Index, for the same period. That result does not take the maximum front end sales charge of 5.25% or the expense ratio of 1.57% for Class A shares into account.

Including sales charge and expenses, as of June 30, 2016 the Fund’s Class A Shares six month return was 2.83% and the one year return was 6.67%. The annualized five year return was 7.60% per year, while the average annual return over the past ten years was 3.02%.

 

2            SPIRIT OF AMERICA

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND

MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Summary of Portfolio Holdings (Unaudited)

As of June 30, 2016

 

 

Residential (REITs)      22.46 %     $ 26,035,310   
Specialized (REITs)      18.73 %       21,712,370   
Retail (REITs)      17.72 %       20,539,961   
Office (REITs)      11.07 %       12,835,107   
Hotel & Resort (REITs)      9.67 %       11,206,529   
Energy      5.07 %       5,884,049   
Industrial (REITs)      5.00 %       5,796,369   
Health Care (REITs)      3.59 %       4,160,514   
Mortgage (REITs)      3.19 %       3,703,913   
Diversified (REITs)      2.26 %       2,618,321   
Financials      0.53 %       616,540   
Municipal Bonds      0.50 %       576,172   
Money Market      0.21 %       240,862   
Total Investments      100.00 %     $ 115,926,017   

Average Annual Returns (Unaudited)

For the periods ended June 30, 2016

 

         
     Six Month      1 Year      5 Year      10 Year  
Class A Shares — with load      2.83%         6.67%         7.60%         3.02%   
Class A Shares — no load      8.49%         12.55%         8.78%         3.58%   
Class C Shares — with load1      7.06%         10.70%         8.01%         2.85%   
Class C Shares — no load1      8.06%         11.70%         8.01%         2.85%   
MSCI US REIT Index2      13.56%         24.11%         12.53%         7.35%   

The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total returns, with load, include the 5.25% maximum sales charge for the Class A Shares or the 1.00% maximum deferred sales charge for the Class C Shares.

 

1 Class C Shares commenced operations on March 15, 2016. Prior to March 15, 2016, performance is based on the performance of Class A Shares adjusted for the Class C Shares’ 12b-1 fees and contingent deferred sales charge.

 

2 The Morgan Stanley Capital International (“MSCI”) US REIT Index is an unmanaged index. The MSCI US REIT Index is a free float- adjusted market capitalization weighted index that is comprised of equity Real Estate Investment Trusts (“REITs”) that are included in the MSCI US Investable Market 2500 Index, with the exception of specialty equity REITs that do not generate a majority of their revenue and income from real estate rental and leasing operations. The index represents approximately 85% of the US REIT universe. The performance of an index assumes no transaction costs, taxes, management fees or other expenses. A direct investment in an index is not possible.

 

    3   

SPIRIT OF AMERICA LARGE CAP VALUE FUND

MANAGEMENT DISCUSSION (UNAUDITED)

 

Dear Shareholder,

We welcome this opportunity to share with you, our investors, the Semi-Annual Report for the Spirit of America Large Cap Value Fund along with our thoughts on the market and recent events.

At Spirit of America, we take a comprehensive approach to investing. Our portfolio managers use their extensive backgrounds in their respective fields to carefully scrutinize each security in the portfolio on an ongoing basis. We evaluate economic trends, we analyze sectors that could benefit from those trends, and finally, invest in companies that we believe possess strong fundamentals.

We believe that investing in sound companies with reasonable share prices will help enhance the long-term returns of the Fund. We are committed to our investment philosophy.

We appreciate your continued support and look forward to your future investment in the Spirit of America Large Cap Value Fund.

Sincerely,

 

LOGO    LOGO   LOGO      LOGO
   David Lerner      Alpana Sen
  

President

      Portfolio Manager
   Spirit of America Investment Fund, Inc.     

 

4            SPIRIT OF AMERICA

SPIRIT OF AMERICA LARGE CAP VALUE FUND

MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Economic Summary

In December 2015, the Federal Reserve raised its benchmark federal-funds rate from near zero to a range between 0.25% and 0.50%. Officials signaled in April and May 2016 that they were getting closer to another increase. However, in June, Fed members decided that it was “prudent to wait” on an interest rate hike until they have additional data on the consequences of Britain’s vote on EU membership. Policymakers discussed the lack of evidence of rising inflation, and cited a severe slowdown in hiring in May by U.S. employers as a reason for leaving interest rates steady.

The latest employment data released by the U.S. Bureau of Labor Statistics shows the total nonfarm payroll employment rose by 287,000 in June, beating expectations to be the largest monthly gain since last October. This was a dramatic increase in comparison to the disappointing May employment increase of only 11,000. The unemployment rate rose by two-tenths of a percentage point to 4.9%, as more people entered the labor force, a sign of confidence in the jobs market.

The U.S. Department of Commerce revised the gross domestic product (GDP) for the 1st quarter of 2016 to a 1.1% annual rate, up from the 0.8% estimate previously reported. Gains in exports and investment in software partially offset weak consumer spending. This is still a lower rate than the 1.4% growth in the 4th quarter of 2015, however retail sales and home sales in April and May suggest the economy has gained momentum in the 2nd quarter.

Market Commentary

Despite the turmoil caused by the Brexit vote in late June, the S&P 500 was up 3.84% and the Dow Jones Industrial Average was up 4.31% for the first six months of 2016. The Nasdaq Composite was down 2.61% over the same time period.

Fund Summary

The Spirit of America Value Fund’s (the “Fund”) primary objective is to seek capital appreciation. The emphasis of the Fund is focused on investing in a diversified portfolio. We are invested in all 10 sectors of the S&P 500 Index.

The Fund does not make decisions based on complicated algorithms. We are not a hedge fund. At Spirit of America, technology works for us; we do not work for technology. We do not receive buy signals from a computer generated model. We invest the old fashioned way — utilizing hard work, intensive research, and intuitive decisions.

Return Summary

The Fund had a total return of 3.21% (no load, gross of fees) vs. the S&P 500 Index which was up 3.84% for the six months ending June 30, 2016. The Fund’s slight underperformance relative to its benchmark was due to its underweight positions in the energy, materials and utilities sectors.

Past performance is not indicative of future results. The results above do not take the sales charge and expense ratio into account. Including sales charge and expenses, the Six Month and 1 Year Total Return of the Fund’s Class A Shares as of June 30, 2016 was -2.22% and -5.20%, respectively. The 5 Year Total Return was 7.57 % and the 10 Year Total Return was 5.18%.

 

    5   

SPIRIT OF AMERICA LARGE CAP VALUE FUND

MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Summary of Portfolio Holdings (Unaudited)

As of June 30, 2016

 

 

Information Technology      20.07 %     $ 14,227,187   
Health Care      15.88 %       11,259,952   
Financials      11.82 %       8,380,062   
Consumer Discretionary      11.26 %       7,980,666   
Consumer Staples      10.11 %       7,166,586   
Real Estate Investment Trusts      9.00 %       6,381,360   
Energy      7.12 %       5,049,596   
Industrials      6.46 %       4,576,570   
Telecommunication Services      4.31 %       3,055,550   
Utilities      2.36 %       1,674,228   
Materials      1.61 %       1,142,792   
Total Investments      100.00 %     $ 70,894,549   

Average Annual Returns (Unaudited)

For the periods ended June 30, 2016

 

         
     Six Month      1 Year      5 Year      10 Year  
Class A Shares — with load      (2.22 )%       (5.20 )%       7.57 %       5.18 % 
Class A Shares — no load      2.40 %       (0.74 )%       8.57 %       5.66 % 
Class C Shares — with load1      1.06 %       (2.38 )%       7.82 %       4.93 % 
Class C Shares — no load1      2.06 %       (1.42 )%       7.82 %       4.93 % 
S&P 500 Index2      3.84 %       3.99 %       12.10 %       7.42 % 

The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total returns, with load, include the 5.25% maximum sales charge for the Class A Shares or the 1.00% maximum deferred sales charge for the Class C Shares.

 

1 Class C Shares commenced operations on March 15, 2016. Prior to March 15, 2016, performance is based on the performance of Class A Shares adjusted for the Class C Shares’ 12b-1 fees and contingent deferred sales charge.

 

2 S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure the performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The performance of an index assumes no transaction costs, taxes, management fees or other expenses. A direct investment in an index is not possible.

 

6            SPIRIT OF AMERICA

 

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

MANAGEMENT DISCUSSION (UNAUDITED)

 

Dear Shareholder,

We are very pleased to provide the 2016 Semi-Annual report for the Spirit of America Municipal Tax Free Bond Fund, (“the Fund”). We look forward to the continued inflows and further development of the Fund.

Our many years of experience in the municipal bond market have helped us to pursue a balance between yield and risk. Our goal is to continue seeking current income that is exempt from federal income tax, while employing a relatively conservative approach to investing in the municipal market. Although the mandate of the Fund allows it to invest in lower rated securities, at this time, the focus will continue to be investing in bonds which are investment grade or higher.

We appreciate your support of our fund and look forward to your future investment in the Spirit of America Municipal Tax Free Bond Fund.

Thank you for being a part of the Spirit of America Family of Funds.

Sincerely,

 

LOGO    LOGO   LOGO      LOGO
   David Lerner      Douglas Revello
  

President

      Portfolio Manager
   Spirit of America Investment Fund, Inc.     

 

    7   

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Economic Summary

In December of 2015, the Federal Reserve raised its benchmark federal-funds rate from near zero to a range between 0.25% and 0.50%. Officials signaled in April and May 2016 that they were getting closer to another increase. However, in June, Fed members decided that it was “prudent to wait” on an interest rate hike until they have additional data on the consequences of Britain’s vote on EU membership. Policymakers discussed the lack of evidence of rising inflation, and cited a severe slowdown in hiring in May by U.S. employers as a reason for leaving interest rates steady.

The latest employment data released by the U.S. Bureau of Labor Statistics shows the total nonfarm payroll employment rose by 287,000 in June, beating expectations to be the largest monthly gain since last October. This was a dramatic increase in comparison to the disappointing May employment increase of only 11,000. The unemployment rate rose by two-tenths of a percentage point to 4.9%, as more people entered the labor force, a sign of confidence in the jobs market.

The U.S. Department of Commerce revised the gross domestic product (GDP) for the 1st quarter of 2016 to a 1.1% annual rate, up from the 0.8% estimate previously reported. Gains in exports and investment in software partially offset weak consumer spending. This is still a lower rate than the 1.4% growth in the 4th quarter of 2015, however retail sales and home sales in April and May suggest the economy has gained momentum in the 2nd quarter.

Market Commentary

Treasuries and municipal bonds fell to generational lows in the first half of 2016 as the Federal Reserve paused from raising rates and concerns over Brexit and global growth fueled a rally into safe-haven assets. The 30-Year US Treasury Yield moved from 2.98% on 1/4/16 to 2.28% 6/30/16. At the same time the 30-Year Tax-Free AAA Municipal Market Data (MMD) yield moved from 2.77% on 1/4/16 to 2.02% on 6/30/16. Municipal issuance amounted to $247 billion over the first half of the year as states and localities have been locking in these low rates and financing capital projects.

Fund Summary

The Spirit of America Municipal Tax Free Bond Fund (“the Fund”) seeks to provide high current income that is exempt from federal income tax, including the alternative minimum tax. The Fund focuses on quality credits in the municipal market. We are pursuing a balance between yield and risk.

As a municipal bond fund, the mandate allows the Fund to invest in lower rated securities; however, we have kept our focus on investing in bonds that are investment grade or higher. Our plan is to continue with this relatively conservative approach to investing in the municipal market.

In keeping with this philosophy, the Fund has been able to maintain attractive yields without venturing into the speculative, below investment grade, segment of the municipal market. As of June 30, 2016, approximately 94.97% of the portfolio was above investment grade, with 90.88% rated “A” or better. The average rating of holdings in the Fund is AA-/Aa3.

One of the Fund’s goals has been to diversify with respect to geographic location and sector. As of the first six months of the year ended June 2016, the Fund consists of different positions varied across 45 states, 2 territories and the District of Columbia. The holdings range throughout various sectors, including areas such as: general obligations, healthcare, education, industrial development and other public improvement bonds.

While it certainly has not been a primary goal of the Fund, we have been able to maintain a percentage of bonds in states and territories which have a state tax exemption in New York, New Jersey and Connecticut, where a majority of our clients reside. Additionally, Puerto Rico bonds are exempt from state tax. Due to the struggles Puerto Rico has been facing, the Fund continues to actively manage its Puerto Rico holdings. As of June 30, 2016, Puerto Rico holdings represent 1.55% of the portfolio, down from 1.67% at the end of 2015.

Return Summary

The Fund’s Class A Shares Net Asset Value (NAV) went from $9.57 to $9.89 during the first half of 2016. The Fund is currently at $111.4 million in net assets with 3,562 shareholder accounts as of June 30, 2016.

The Fund had a total return of 5.50% (no load, gross of fees) for the first six months of 2016. This compares to the 4.33% return of its benchmark, the Barclay Municipal Bond Index, for the same period. That result does not take the Fund’s sales

 

8            SPIRIT OF AMERICA

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

charge and expense ratio into account. One of the factors that led the Fund to outperform the index was the longer average maturity of the Fund than the index. Bonds with longer maturities experience greater price movement when interest rates change.

Including the sales charge and expenses, as of June 30, 2016, the Fund’s Class A Shares six month return was 0.01% and the one year return was 3.73%. The Fund’s Class A Shares had an annualized five year return of 4.35% and an annualized return since inception of 4.03%.

Our plan is to proceed with the same strategy that we have utilized since the Fund’s inception. We will continue to seek out municipal bonds that provide a balance between credit risk and the potential to offer high current income and consistently attractive yields.

Ratings are provided by Moody’s Investor Services and Standard & Poor’s.

The Moody’s ratings in the following ratings explanations are in parenthesis.

AAA (Aaa) - The highest rating assigned by Moody’s and S&P. Capacity to pay interest and repay principal is extremely strong.

AA (Aa) - Debt has a very strong capacity to pay interest and repay principal and differs from the highest rated issues only in a small degree.

A - Debt rated “A” has a strong capacity to pay interest and repay principal, although it is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher-rated categories.

BBB (Baa) - Debt is regarded as having an adequate capacity to pay interest and repay principal. These ratings by Moody’s and S&P are the “cut-off” for a bond to be considered investment grade. Whereas debt normally exhibits adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal in this category than in higher-rated categories.

BB (Bb), B, CCC (Ccc), CC (Cc), C - Debt rated in these categories is regarded as having predominantly speculative characteristics with respect to capacity to pay interest and repay principal. “BB” indicates the least degree of speculation and “C” the highest. While such debt will likely have some quality and protective characteristics, these are outweighed by large uncertainties or market exposure to adverse conditions and are not considered to be investment grade.

D - Debt rated “D” is in payment default. This rating category is used when interest payments or principal payments are not made on the date due, even if the applicable grace period has not expired, unless S&P believes that such payments will be made during such grace period.

Ratings are subject to change.

Ratings apply to the bonds in the portfolio. They do not remove market risk associated with the fund.

Ratings are based on Moody’s and S&P, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. If securities are rated differently by the rating agencies, the higher of the two rating is applied thus improving the overall evaluation of the portfolio.

 

    9   

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Summary of Portfolio Holdings (Unaudited)

As of June 30, 2016

 

 

New York      24.44 %     $ 27,062,895   
New Jersey      11.62 %       12,865,132   
Connecticut      10.06 %       11,139,989   
Florida      8.41 %       9,316,121   
Pennsylvania      7.31 %       8,096,022   
Texas      3.52 %       3,900,843   
Michigan      3.11 %       3,439,123   
Indiana      2.74 %       3,034,506   
California      2.53 %       2,802,451   
Washington      1.82 %       2,013,690   
Rhode Island      1.80 %       1,988,310   
Georgia      1.66 %       1,836,894   
Maryland      1.57 %       1,738,788   
New Mexico      1.55 %       1,714,489   
District of Columbia      1.55 %       1,712,123   
Puerto Rico      1.55 %       1,711,544   
Illinois      1.37 %       1,516,047   
Maine      1.07 %       1,181,725   
Missouri      0.94 %       1,036,582   
Massachusetts      0.94 %       1,034,935   
Louisiana      0.85 %       936,773   
Nevada      0.82 %       908,474   
Ohio      0.71 %       782,654   
North Carolina      0.66 %       727,043   
Alaska      0.64 %       713,435   

 

Iowa      0.60 %     $ 665,444   
Colorado      0.56 %       615,777   
Wisconsin      0.55 %       605,787   
Wyoming      0.48 %       535,545   
Virginia      0.47 %       521,153   
West Virginia      0.46 %       503,368   
Utah      0.38 %       424,531   
South Dakota      0.37 %       407,039   
Oregon      0.34 %       376,286   
Kentucky      0.34 %       373,028   
Tennessee      0.32 %       349,490   
Nebraska      0.27 %       299,265   
Kansas      0.26 %       284,695   
Mississippi      0.26 %       282,817   
Oklahoma      0.25 %       271,545   
Vermont      0.23 %       256,086   
Arizona      0.20 %       223,554   
New Hampshire      0.11 %       116,779   
Alabama      0.10 %       109,282   
Virgin Islands      0.10 %       109,237   
North Dakota      0.10 %       104,904   
South Carolina      0.05 %       54,912   
Hawaii      0.04 %       46,757   
Total Investments      100.00 %     $ 110,747,869   
 

 

10            SPIRIT OF AMERICA

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Average Annual Returns (Unaudited)

For the periods ended June 30, 2016

 

         
     Six Month      1 Year      5 Year      Since Inception
(February 29, 2008)		  
Class A Shares — with load      0.01%         3.73%         4.35%         4.03%   
Class A Shares — no load      5.03%         8.93%         5.37%         4.64%   
Class C Shares — with load1      3.53%         6.95%         4.47%         3.75%   
Class C Shares — no load1      4.53%         7.95%         4.47%         3.75%   
Barclays Municipal Bond Index2      4.33%         7.65%         5.33%         5.43%   

The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total returns, with load, include the 4.75% maximum sales charge for the Class A Shares or the 1.00% maximum deferred sales charge for the Class C Shares.

 

1 Class C Shares commenced operations on March 15, 2016. Prior to March 15, 2016, performance is based on the performance of Class A Shares adjusted for the Class C Shares’ 12b-1 fees and contingent deferred sales charge.

 

2 The Barclays Municipal Bond Index is an unmanaged index. The performance of an index assumes no transaction costs, taxes, management fees or other expenses. A direct investment in an index is not possible.

 

    11   

SPIRIT OF AMERICA INCOME FUND

MANAGEMENT DISCUSSION (UNAUDITED)

 

Dear Shareholder,

We are pleased to send you the 2016 Semi-Annual Report for the Spirit of America Income Fund, (the “Fund”). The Fund began operations on December 31, 2008.

As the first half of 2016 comes to an end, we couldn’t be more proud and excited about the progress of this fund. Although past performance is no guarantee of future results, the Spirit of America Income Fund has met and exceeded our goals.

We firmly maintain our philosophy that striving for the optimal balance between yield and risk will continue to position us to achieve long term success. Our dedication to providing our investors with a fund that will merit their long term commitment and satisfaction has never been stronger. Now is an excellent time to team up with your Investment Counselor to evaluate your portfolio and make sure you are properly positioned to achieve your investment goals.

Your support is sincerely appreciated and we look forward to your continued confidence in the Spirit of America Income Fund.

Sincerely,

 

LOGO    LOGO   LOGO     

LOGO

   David Lerner      Mark Reilly
  

President

      Portfolio Manager
   Spirit of America Investment Fund, Inc.     

 

12            SPIRIT OF AMERICA

SPIRIT OF AMERICA INCOME FUND

MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Economic Summary

In December 2015, the Federal Reserve raised its benchmark federal-funds rate from near zero to a range between 0.25% and 0.50%. Officials signaled in April and May 2016 that they were getting closer to another increase. However, in June, Fed members decided that it was “prudent to wait” on an interest rate hike until they have additional data on the consequences of Britain’s vote on EU membership. Policymakers discussed the lack of evidence of rising inflation, and cited a severe slowdown in hiring in May by U.S. employers as a reason for leaving interest rates steady.

The latest employment data released by the U.S. Bureau of Labor Statistics shows the total nonfarm payroll employment rose by 287,000 in June, beating expectations to be the largest monthly gain since last October. This was a dramatic increase in comparison to the disappointing May employment increase of only 11,000. The unemployment rate rose by two-tenths of a percentage point to 4.9%, as more people entered the labor force, a sign of confidence in the jobs market.

The U.S. Department of Commerce revised the gross domestic product (GDP) for the 1st quarter of 2016 to a 1.1% annual rate, up from the 0.8% estimate previously reported. Gains in exports and investment in software partially offset weak consumer spending. This is still a lower rate than the 1.4% growth in the 4th quarter of 2015, however retail sales and home sales in April and May suggest the economy has gained momentum in the 2nd quarter.

Market Commentary

Despite the turmoil caused by the Brexit vote in late June, the S&P 500 was up 3.84% and the Dow Jones Industrial Average was up 4.31% for the first six months of 2016. The Nasdaq Composite was down 2.61% over the same time period.

Treasuries and municipal bonds fell to generational lows in the first half of 2016 as the Federal Reserve paused from raising rates and concerns over Brexit and global growth fueled a rally into safe-haven assets. The 30-Year US Treasury Yield moved from 2.98% on 1/4/16 to 2.28% on 6/30/16. At the same time, the MMD Taxable 30-Year AAA yield began the year at 3.89% on 1/4/16 and ended the 2nd quarter at 3.27% on 6/30/16. Municipal issuance amounted to $247 billion over the first half of the year as states and localities have been locking these low rates and financing capital projects.

Fund Summary

The Spirit of America Income Fund (the “Fund”) is the second largest fund of the Spirit of America Family of Funds based on assets under management. The Fund’s objective is to seek high current income. The emphasis of the Fund is focused on investing in a diversified portfolio of taxable municipal bonds, income producing convertible securities, high yield U.S. corporate bonds, preferred stocks, collateralized mortgage obligations, and master limited partnerships (MLPs).

At the end of the first half of 2016, the Fund had over 75% of its assets in taxable municipal bonds, over 9% in preferred stock, over 7% in corporate bonds, and over 3% in MLPs. We remain diligent in our approach to the market. Here at Spirit of America each and every credit goes through vigorous credit analysis and we have a wealth of knowledge and experience in trading.

The Fund does not make decisions based on complicated algorithms. We are not a hedge fund. At Spirit of America, technology works for us; we do not work for technology. We do not receive buy signals from a computer generated model.

We invest the old fashioned way — utilizing hard work, intensive research, and intuitive decisions. Our decisions are based on experience. When we began the Fund, we felt the environment was favorable to start an income fund and while past performance is no guarantee of future results; our results have validated that belief.

Return Summary

The Fund had a total return of 8.68% (no load, gross of fees) for the first six months of the year ending June 30, 2016. This compares to the 5.31% return of its benchmark, the Barclays U.S. Aggregate Index, for the same period. That result does not take the Fund’s sales charge and expense ratio into account.

Including the sales charge and expenses, as of June 30, 2016, the Fund’s Class A Shares six month return was 2.97% and the one year return was 3.56%. The Fund’s Class A Shares, which began operations in January 2009, had an annualized five year return of 6.33% and an annualized return since inception of 8.48%.

 

    13   

SPIRIT OF AMERICA INCOME FUND

MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

We plan to proceed with the same game plan we have employed since the Fund began: pursuing a balance between yield and risk with an emphasis on quality.

Summary of Portfolio Holdings (Unaudited)

As of June 30, 2016

 

 

Municipal Bonds      75.98 %     $ 169,344,919   
Preferred Stocks      9.82 %       21,889,939   
Corporate Bonds      7.81 %       17,408,045   
Common Stocks      5.42 %       12,086,473   
Collateralized Mortgage Obligations      0.15 %       324,828   
Money Market      0.82 %       1,835,539   
Total Investments      100.00 %     $ 222,889,743   

Average Annual Returns (Unaudited)

For the periods ended June 30, 2016

 

         
     Six Month      1 Year      5 Year      Since Inception
(December 31, 2008)		  
Class A Shares — with load      2.97%         3.56%         6.33%         8.48%   
Class A Shares — no load      8.09%         8.70%         7.36%         9.19%   
Class C Shares — with load1      6.60%         6.79%         6.54%         8.37%   
Class C Shares — no load1      7.60%         7.79%         6.54%         8.37%   
Barclays U.S. Aggregate Index2      5.31%         6.00%         3.76%         4.50%   

The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total returns, with load, include the 4.75% maximum sales charge for the Class A Shares or the 1.00% maximum deferred sales charge for the Class C Shares.

 

1 Class C Shares commenced operations on March 15, 2016. Prior to March 15, 2016, performance is based on the performance of Class A Shares adjusted for the Class C Shares’ 12b-1 fees and contingent deferred sales charge.

 

2 The Barclays U.S. Aggregate Bond Index is an unmanaged index. The performance of an index assumes no transaction costs, taxes, management fees or other expenses. A direct investment in an index is not possible.

 

14            SPIRIT OF AMERICA

SPIRIT OF AMERICA INCOME AND OPPORTUNITY FUND

MANAGEMENT DISCUSSION (UNAUDITED)

 

Dear Shareholder,

We are pleased to send you the Semi-Annual Report for The Spirit of America Income and Opportunity Fund, (the “Fund”). The Fund began operations on July 4, 2013.

We hope you are as excited as we are to be a part of our fund. We anticipate the assets in the Fund will continue to grow. The Fund is designed to deliver attractive returns to our investors. Since its inception the Fund has experienced an increase in assets under management and we look forward to continued inflows in the upcoming year.

We firmly believe that striving for the optimal balance between yield and risk will position us to achieve long term success. Our dedication to providing our investors with a fund that will merit their long term commitment and satisfaction has never been stronger. Now is an excellent time to team up with your Investment Counselor to evaluate your portfolio and make sure you are properly positioned to achieve your investment goals.

We appreciate your support of our fund and look forward to your continued investment in The Spirit of America Income and Opportunity Fund.

Sincerely,

 

LOGO    LOGO   LOGO      LOGO
   David Lerner      William Mason
   President      Portfolio Manager
   Spirit of America Investment Fund, Inc.     

 

    15   

SPIRIT OF AMERICA INCOME AND OPPORTUNITY FUND

MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Economic Summary

In December 2015, the Federal Reserve raised its benchmark federal-funds rate from near zero to a range between 0.25% and 0.50%. Officials signaled in April and May 2016 that they were getting closer to another increase. However, in June, Fed members decided that it was “prudent to wait” on an interest rate hike until they have additional data on the consequences of Britain’s vote on EU membership. Policymakers discussed the lack of evidence of rising inflation, and cited a severe slowdown in hiring in May by U.S. employers as a reason for leaving interest rates steady.

The latest employment data released by the U.S. Bureau of Labor Statistics shows the total nonfarm payroll employment rose by 287,000 in June, beating expectations to be the largest monthly gain since last October. This was a dramatic increase in comparison to the disappointing May employment increase of only 11,000. The unemployment rate rose by two-tenths of a percentage point to 4.9%, as more people entered the labor force, a sign of confidence in the jobs market.

The U.S. Department of Commerce revised the gross domestic product (GDP) for the 1st quarter of 2016 to a 1.1% annual rate, up from the 0.8% estimate previously reported. Gains in exports and investment in software partially offset weak consumer spending. This is still a lower rate than the 1.4% growth in the 4th quarter of 2015, however retail sales and home sales in April and May suggest the economy has gained momentum in the 2nd quarter.

Market Commentary

Despite the turmoil caused by the Brexit vote in late June, the S&P 500 was up 3.84% and the Dow Jones Industrial Average was up 4.31% for the first six months of 2016. The Nasdaq Composite was down 2.61% over the same time period.

The Fund invests a portion of its assets in Master Limited Partnerships (MLPs). The Alerian MLP Index (AMZ), a capitalization-weighted composite of 50 energy Master Limited Partnerships, had a total return of 14.71% for the period of December 31, 2015 through June 30, 2016.

Treasuries and municipal bonds fell to generational lows in the first half of 2016 as the Federal Reserve paused from raising rates and concerns over Brexit and global growth fueled a rally into safe-haven assets. The 30-Year US Treasury Yield moved from 2.98% on 1/4/16 to 2.28% on 6/30/16. At the same time, the MMD Taxable 30-Year AAA yield began the year at 3.89% on 1/4/16 and ended the 2nd quarter at 3.27% on 6/30/16. Municipal issuance amounted to $247 billion over the first half of the year as states and localities have been locking these low rates and financing capital projects.

Fund Summary

The Spirit of America Income and Opportunity Fund’s, (the “Fund”) objective is to provide shareholders with current income and the potential for capital appreciation. The emphasis of the Fund is focused on investing in a diversified portfolio of equity securities, fixed income securities, REIT’s, and master limited partnerships (MLPs).

At the end of the first half of 2016, the Fund had over 39% of its assets invested in taxable municipal bonds, over 19% in preferred stock, over 10% in master limited partnerships (MLPs), over 5% in corporate bonds, and over 25% in non-MLP common stock positions.

The Fund does not make decisions based on complicated algorithms. We are not a hedge fund. At Spirit of America, technology works for us; we do not work for technology. We do not receive buy signals from a computer generated model. We invest the old fashioned way — utilizing hard work, intensive research, and intuitive decisions. Our decisions are based on experience.

Return Summary

The Fund had a total return for the first six months of 2016 of 10.97% (no load, gross of fees) as of June 30, 2016. This compares to the 5.31% return of its benchmark, the Barclays U.S. Aggregate Index, for the same period. That result does not take the Fund’s sales charge and expense ratio into account.

 

16            SPIRIT OF AMERICA

SPIRIT OF AMERICA INCOME AND OPPORTUNITY FUND

MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

As we mentioned earlier, yields fell on both the long US Treasury Bond and the taxable municipal market over the first six months of 2016. The upward trajectory of the bond market combined with the positive return on MLPs contributed to the Fund’s outperformance.

Including the sales charge and expenses, as of June 30, 2016, the Fund’s Class A Shares had a six month return of 5.02% and a one year return of 0.50%. The Fund’s Class A Shares, which began operations in July 2013, had an annualized return since inception of 2.72% as June 30, 2016.

We plan to proceed with the same game plan we have employed since the Fund began: pursuing a balance between yield and risk.

Summary of Portfolio Holdings (Unaudited)

As of June 30, 2016

 

 

Municipal Bonds      39.50 %     $ 22,795,057   
Common Stocks      35.69 %       20,594,594   
Preferred Stocks      19.50 %       11,249,634   
Corporate Bonds      5.22 %       3,014,397   
Money Market Securities      0.09 %       53,435   
Total Investments      100.00 %     $ 57,707,117   

Average Annual Returns (Unaudited)

For the periods ended June 30, 2016

 

       
     Six Month      1 Year      Since Inception
(July 8, 2013)		  
Class A Shares — with load      5.02%         0.50%         2.72%   
Class A Shares — no load      10.30%         5.51%         4.41%   
Class C Shares — with load1      8.53%         3.38%         3.52%   
Class C Shares — no load1      9.53%         4.38%         3.52%   
Barclays U.S. Aggregate Index2      5.31%         6.00%         4.45%   

The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total returns, with load, include the 4.75% maximum sales charge for the Class A Shares or the 1.00% maximum deferred sales charge for the Class C Shares.

 

1 Class C Shares commenced operations on March 15, 2016. Prior to March 15, 2016, performance is based on the performance of Class A Shares adjusted for the Class C Shares’ 12b-1 fees and contingent deferred sales charge.

 

2 The Barclays U.S. Aggregate Bond Index is an unmanaged index. The performance of an index assumes no transaction costs, taxes, management fees or other expenses. A direct investment in an index is not possible.

 

    17   

DISCLOSURE OF FUND EXPENSES (UNAUDITED)

FOR THE SIX MONTH PERIOD JANUARY 1, 2016 TO JUNE 30, 2016

 

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions; and (2) ongoing cost, including management fees, distribution and service fees; and other Fund expenses. These 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.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from January 1, 2016 to June 30, 2016.

Actual Fund Return: This section helps you to estimate the actual expenses that you paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, the third column shows the period’s annualized expense ratio, and the last column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund at the beginning of the period. You may use the information here, together with your account value, to estimate the expenses that you paid over the period.

To do so, 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 entitled “Expenses Paid During the Period.”

Hypothetical 5% Return: This section is intended to help you compare your Fund’s costs with those of other mutual funds. It assumes that the Fund had a return of 5% before expenses during the period shown, but that the expense ratio is unchanged. In this case, because the return used is not the Fund’s actual return, the results do not apply to your investment. You can assess your Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads), or redemption fees.

 

 

        Beginning     Ending     Expenses        
        Account     Account     Paid     Annualized  
        Value     Value     During the     Expense  
        January 1, 2016     June 30, 2016     Period1     Ratio  

Spirit of America Real Estate Income and Growth Fund

  

      

Class A

   Actual   $ 1,000.00      $ 1,084.90      $ 8.14        1.57 % 
  Hypothetical2   $ 1,000.00      $ 1,017.06      $ 7.87        1.57 % 

Class C

   Actual3   $ 1,000.00      $ 1,090.40      $ 7.00        2.27 % 
  Hypothetical2   $ 1,000.00      $ 1,013.58      $ 11.36        2.27 % 

Spirit of America Large Cap Value Fund

        

Class A

   Actual   $ 1,000.00      $ 1,024.00      $ 8.05        1.60 % 
  Hypothetical2   $ 1,000.00      $ 1,016.91      $ 8.02        1.60 % 

Class C

   Actual3   $ 1,000.00      $ 1,039.30      $ 6.92        2.30 % 
  Hypothetical2   $ 1,000.00      $ 1,013.43      $ 11.51        2.30 % 

Spirit of America Municipal Tax Free Bond Fund

  

      

Class A

   Actual   $ 1,000.00      $ 1,050.30      $ 4.59        0.90 % 
  Hypothetical2   $ 1,000.00      $ 1,020.39      $ 4.52        0.90 % 

Class C

   Actual3   $ 1,000.00      $ 1,038.00      $ 5.26        1.75 % 
  Hypothetical2   $ 1,000.00      $ 1,016.16      $ 8.77        1.75 % 

Spirit of America Income Fund

        

Class A

   Actual   $ 1,000.00      $ 1,080.90      $ 5.69        1.10 % 
  Hypothetical2   $ 1,000.00      $ 1,019.39      $ 5.52        1.10 % 

Class C

   Actual3   $ 1,000.00      $ 1,058.40      $ 5.62        1.85 % 
  Hypothetical2   $ 1,000.00      $ 1,015.66      $ 9.27        1.85 % 

 

18            SPIRIT OF AMERICA

DISCLOSURE OF FUND EXPENSES (UNAUDITED) (CONT.)

 

          Beginning     Ending     Expenses        
          Account     Account     Paid     Annualized  
          Value     Value     During the     Expense  
          January 1, 2016     June 30, 2016     Period1     Ratio  

Spirit of America Income and Opportunity Fund

  

      

Class A

     Actual      $ 1,000.00      $ 1,103.00      $ 6.54        1.25 % 
    Hypothetical2      $ 1,000.00      $ 1,018.65      $ 6.27        1.25 % 

Class C

     Actual3      $ 1,000.00      $ 1,088.10      $ 6.16        2.00 % 
    Hypothetical2      $ 1,000.00      $ 1,014.92      $ 10.02        2.00 % 

 

1 Expenses are equal to each Fund’s annualized expense ratios, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). The annualized expense ratios reflect reimbursement/recoupment of expenses by the Funds’ Adviser for the period beginning January 1, 2016 to June 30, 2016. The “Financial Highlights” tables in the Funds’ financial statements, included in the report, also show the gross expense ratios, without such reimbursements.

 

2 Assumes a 5% annual return before expenses.

 

3 Information shown reflects values using the expense ratio for the period March 15, 2016 (date of commencement of operations) to June 30, 2016.

 

    19   

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND

 

SCHEDULE OF INVESTMENTS    JUNE 30, 2016 (UNAUDITED)

 

     Shares      Market Value  
Common Stocks 96.84%      

Diversified REITs 2.25%

  

American Assets Trust, Inc.

      10,000       $ 424,400   

STORE Capital Corp.

      3,780         111,321   

WP Carey, Inc.

      30,000         2,082,600   
     2,618,321   

Energy 5.07%

  

Cheniere Energy Partners LP

      8,100         242,838   

Enterprise Products Partners LP

      51,802         1,515,727   

Magellan Midstream Partners LP

      15,000         1,140,000   

MPLX LP

      22,486         756,204   

Spectra Energy Partners LP

      7,555         356,445   

Sunoco Logistics Partners LP

      7,500         215,625   

Sunoco LP

      5,650         169,218   

USA Compression Partners LP

      50,000         733,000   

Western Gas Partners LP

      14,980         754,992   
     5,884,049   

Financials 0.44%

  

NorthStar Asset Management Group, Inc.

      50,000         510,500   

Health Care REITs 3.58%

  

Global Medical REIT, Inc.

      10,000         101,100   

Ventas, Inc.

      37,650         2,741,673   

Welltower, Inc.

      17,300         1,317,741   
     4,160,514   

Hotel & Resort REITs 9.60%

  

Apple Hospitality REIT, Inc.

      56,138         1,055,956   

Ashford Hospitality Prime, Inc.

      33,100         468,034   

Ashford Hospitality Trust, Inc.

      115,125         618,221   

Chesapeake Lodging Trust

      33,200         771,900   

DiamondRock Hospitality Co.

      230,600         2,082,318   

FelCor Lodging Trust, Inc.

      248,726         1,549,563   

HCP, Inc.

      25,618         906,365   

Hersha Hospitality Trust

      80,000         1,372,000   

Pebblebrook Hotel Trust

      77,650         2,038,312   

Sotherly Hotels, Inc.

      52,000         293,280   
     11,155,949   

Industrial REITs 4.99%

  

DCT Industrial Trust, Inc.

      14,214         682,841   

Prologis, Inc.

      100,000         4,904,000   

STAG Industrial, Inc.

      8,800         209,528   
     5,796,369   

 

20            SPIRIT OF AMERICA

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Shares      Market Value  

Mortgage REITs 3.19%

  

Blackstone Mortgage Trust, Inc.

      45,000       $ 1,245,150   

Hannon Armstrong Sustainable Infrastructure Capital, Inc.

      83,567         1,805,047   

Starwood Property Trust, Inc.

      31,550         653,716   
     3,703,913   

Office REITs 11.05%

  

Boston Properties, Inc.

      24,000         3,165,600   

City Office REIT, Inc.

      127,258         1,651,809   

Hudson Pacific Properties, Inc.

      88,300         2,576,594   

Kilroy Realty Corp.

      32,365         2,145,476   

SL Green Realty Corp.

      21,550         2,294,428   

Vornado Realty Trust

      10,000         1,001,200   
     12,835,107   

Residential REITs 22.41%

  

American Campus Communities, Inc.

      13,500         713,745   

Apartment Investment & Management Co.

      62,280         2,750,285   

AvalonBay Communities, Inc.

      18,290         3,299,333   

Camden Property Trust

      25,000         2,210,500   

Education Realty Trust, Inc.

      26,625         1,228,477   

Equity LifeStyle Properties, Inc.

      13,550         1,084,677   

Equity Residential

      37,615         2,590,921   

Essex Property Trust, Inc.

      17,521         3,996,365   

Mid-America Apartment Communities, Inc.

      41,972         4,465,821   

Sun Communities, Inc.

      18,200         1,394,848   

UDR, Inc.

      62,306         2,300,338   
     26,035,310   

Retail REITs 17.07%

  

Federal Realty Investment Trust

      40,000         6,622,000   

General Growth Properties, Inc.

      34,900         1,040,718   

Kimco Realty Corp.

      56,319         1,767,290   

Realty Income Corp.

      4,630         321,137   

Regency Centers Corp.

      20,000         1,674,600   

Simon Property Group, Inc.(a)

      38,775         8,410,297   
     19,836,042   

Specialized REITs 17.19%

  

CoreSite Realty Corp.

      40,000         3,547,600   

CubeSmart

      20,000         617,600   

CyrusOne, Inc.

      25,000         1,391,500   

Digital Realty Trust, Inc.

      51,970         5,664,210   

DuPont Fabros Technology, Inc.

      10,000         475,400   

Extra Space Storage, Inc.

      25,000         2,313,500   

QTS Realty Trust, Inc., Class A

      47,000         2,631,060   

Sovran Self Storage, Inc.

      31,700         3,325,964   
     19,966,834   

Total Common Stocks
(Cost $75,240,190)

         112,502,908   

 

    21   

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Shares      Market Value  
Preferred Stocks 2.24%      

Diversified Banks 0.09%

                  

Wells Fargo & Co., Series W, 5.70%

      4,000       $ 106,040   

Hotel & Resort REITs 0.04%

                  

Hersha Hospitality Trust, Series D, 6.50%

      2,000         50,580   

Retail REITs 0.61%

                  

National Retail Properties, Inc., Series E, 5.70%

      26,364         703,919   

Specialized REITs 1.50%

                  

Digital Realty Trust, Inc., Series H, 7.38%

      6,000         173,700   

Digital Realty Trust, Inc., Series I, 6.35%

      10,000         265,500   

Digital Realty Trust, Inc., Series E, 7.00%

      6,000         152,580   

Public Storage, Series Z, 6.00%

      6,000         169,140   

Public Storage, Series W, 5.20%

      6,000         156,720   

Public Storage, Series C, 5.13%

      2,000         51,760   

Public Storage, Series B, 5.40%

      29,200         776,136   
     1,745,536   

Total Preferred Stocks
(Cost $2,474,803)

         2,606,075   
Municipal Bonds 0.50%      

Franklin County Convention Facilities Authority, 6.54%, 12/1/36

      140,000         180,293   

Miami-Dade County Educational Facilities Authority, 5.07%, 4/1/50

      100,000         119,686   

Port Authority of New York & New Jersey, 4.82%, 6/1/45

      250,000         276,193   

Total Municipal Bonds
(Cost $540,610)

         576,172   
Money Market 0.21%      

Fidelity Prime Money Market Portfolio, Institutional Class, 0.48%(b)

      240,862         240,862   

Total Money Market

      

(Cost $240,862)

         240,862   

Total Investments — 99.79%

      

(Cost $78,496,465)

         115,926,017   

Other Assets in Excess of Liabilities — 0.21%

         245,248   
     

 

 

  

NET ASSETS — 100.00%

             $ 116,171,265   

 

(a) All or a portion of the security is held as collateral for written options.
(b) Rate disclosed is the seven day effective yield as of June 30, 2016.

REIT - Real Estate Investment Trust

 

22            SPIRIT OF AMERICA

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND

 

SCHEDULE OF WRITTEN OPTIONS    JUNE 30, 2016 (UNAUDITED)

 

 

     Contracts      Market Value  
Written Call Options (0.00)%   

Simon Property Group, Inc./ July 2016/ Strike Price $220.00(a)*

      (24 )     $ (3,900 ) 

Total Written Call Options
(Premiums Received $6,167)

             $ (3,900 ) 

 

(a) The option contract has a multiplier of 100 shares.
* Non-income producing security.

 

    23   

SPIRIT OF AMERICA LARGE CAP VALUE FUND

 

SCHEDULE OF INVESTMENTS    JUNE 30, 2016 (UNAUDITED)

 

     Shares      Market Value  
Common Stocks 94.53%      

Consumer Discretionary 11.23%

  

CBS Corp., Class B

      8,100       $ 440,964   

Comcast Corp., Class A

      14,000         912,660   

Home Depot, Inc. (The)

      18,600         2,375,034   

McDonald’s Corp.

      9,380         1,128,789   

Ross Stores, Inc.

      6,200         351,478   

Walt Disney Co. (The)

      22,000         2,152,040   

Wyndham Worldwide Corp.

      8,700         619,701   
     7,980,666   

Consumer Staples 9.92%

  

Altria Group, Inc.

      25,700         1,772,272   

Coca-Cola Co.(The)

      15,700         711,681   

ConAgra Foods, Inc.

      6,900         329,889   

Kimberly-Clark Corp.

      8,000         1,099,840   

Kraft Heinz Co. (The)

      2,999         265,352   

PepsiCo, Inc.

      9,150         969,351   

Philip Morris International, Inc.

      9,400         956,168   

Procter & Gamble Co. (The)

      3,700         313,279   

Rite Aid Corp.*

      16,000         119,840   

Walgreens Boots Alliance, Inc.

      3,000         249,810   

Wal-Mart Stores, Inc.

      3,624         264,624   
     7,052,106   

Energy 6.76%

  

Boardwalk Pipeline Partners LP

      13,000         226,850   

Chevron Corp.

      6,600         691,878   

ConocoPhillips

      5,550         241,980   

EOG Resources, Inc.

      4,700         392,074   

Exxon Mobil Corp.

      19,500         1,827,930   

Halliburton Co.

      7,100         321,559   

Schlumberger Ltd.

      6,375         504,135   

Tesoro Corp.

      2,000         149,840   

Valero Energy Corp.

      8,700         443,700   
     4,799,946   

Financials 9.15%

  

American Express Co.

      10,000         607,600   

Bank of America Corp.

      30,300         402,081   

Blackstone Group LP (The)

      14,200         348,468   

Citigroup, Inc.

      12,300         521,397   

CME Group, Inc.

      1,100         107,140   

FNF Group, Class A

      2,500         93,750   

Goldman Sachs Group, Inc.(The)

      3,265         485,114   

Hartford Financial Services Group, Inc.(The)

      14,000         621,320   

JPMorgan Chase & Co.

      14,977         930,671   

MetLife, Inc.

      10,875         433,151   

Prudential Financial, Inc.

      6,000         428,040   

Travelers Cos., Inc.(The)

      4,500         535,680   

 

24            SPIRIT OF AMERICA

SPIRIT OF AMERICA LARGE CAP VALUE FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Shares      Market Value  

Financials (cont.)

  

U.S. Bancorp

      9,700       $ 391,201   

Wells Fargo & Co.

      12,556         594,275   
     6,499,888   

Health Care 15.75%

  

AbbVie, Inc.

      7,700         476,707   

Aetna, Inc.

      3,800         464,094   

Allergan PLC*

      3,300         762,597   

Amgen, Inc.

      3,250         494,488   

Bristol-Myers Squibb Co.

      8,700         639,885   

Gilead Sciences, Inc.

      8,000         667,360   

Humana, Inc.

      3,000         539,640   

Johnson & Johnson

      8,810         1,068,653   

McKesson Corp.

      5,000         933,250   

Medtronic PLC

      10,229         887,570   

Merck & Co., Inc.

      15,500         892,955   

Mylan NV*

      5,800         250,792   

Pfizer, Inc.

      16,900         595,049   

Quest Diagnostics, Inc.

      4,500         366,345   

Thermo Fisher Scientific, Inc.

      2,700         398,952   

UnitedHealth Group, Inc.

      12,400         1,750,880   
     11,189,217   

Industrials 6.44%

  

3M Co.

      5,650         989,428   

Boeing Co.(The)

      5,200         675,324   

Caterpillar, Inc.

      3,000         227,430   

CSX Corp.

      10,000         260,800   

General Electric Co.

      32,881         1,035,094   

Honeywell International, Inc.

      6,200         721,184   

Masco Corp.

      5,000         154,700   

Tyco International PLC

      7,700         328,020   

United Technologies Corp.

      1,800         184,590   
     4,576,570   

Information Technology 19.87%

  

Accenture PLC, Class A

      3,000         339,870   

Adobe Systems, Inc.*

      4,200         402,318   

Apple, Inc.

      25,200         2,409,120   

Applied Materials, Inc.

      17,800         426,666   

Cisco Systems, Inc.

      24,500         702,905   

Cognizant Technology Solutions Corp., Class A*

      10,100         578,124   

Corning, Inc.

      13,200         270,336   

EMC Corp.

      7,000         190,190   

Hewlett Packard Enterprise Co.

      11,000         200,970   

HP, Inc.

      11,000         138,050   

Intel Corp.

      26,400         865,920   

International Business Machines Corp.

      2,858         433,787   

MasterCard, Inc., Class A

      6,900         607,614   

Microsoft Corp.

      34,450         1,762,806   

 

    25   

SPIRIT OF AMERICA LARGE CAP VALUE FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Shares      Market Value  

Information Technology (cont.)

  

NetApp, Inc.

      3,000       $ 73,770   

Oracle Corp.

      24,800         1,015,064   

Paychex, Inc.

      6,200         368,900   

QUALCOMM, Inc.

      8,800         471,416   

Symantec Corp.

      21,100         433,394   

Texas Instruments, Inc.

      16,525         1,035,291   

Visa, Inc.(a)

      18,800         1,394,396   
     14,120,907   

Materials 1.61%

  

Dow Chemical Co.(The)

      8,650         429,992   

EI du Pont de Nemours & Co.

      11,000         712,800   
     1,142,792   

Real Estate Investment Trusts 8.12%

  

American Campus Communities, Inc.

      18,450         975,452   

Apartment Investment & Management Co., Class A

      2,500         110,400   

Apple Hospitality REIT, Inc.

      11,600         218,196   

DiamondRock Hospitality Co.

      10,000         90,300   

Digital Realty Trust, Inc.

      8,400         915,516   

Education Realty Trust, Inc.

      29,750         1,372,665   

Essex Property Trust, Inc.

      500         114,045   

Healthcare Realty Trust, Inc.

      5,000         174,950   

Invesco Mortgage Capital, Inc.

      7,000         95,830   

Pebblebrook Hotel Trust

      3,900         102,375   

Prologis, Inc.

      5,000         245,200   

Public Storage

      1,400         357,826   

Simon Property Group, Inc.

      2,600         563,940   

Spirit Realty Capital, Inc.

      34,000         434,180   
     5,770,875   

Telecommunication Services 3.55%

  

AT&T, Inc.

      30,750         1,328,707   

CenturyLink, Inc.

      1,800         52,218   

Verizon Communications, Inc.

      20,440         1,141,370   
     2,522,295   

Utilities 2.13%

  

American Electric Power Co., Inc.

      1,750         122,658   

NextEra Energy, Inc.

      4,100         534,640   

WEC Energy Group, Inc.

      13,100         855,430   
     1,512,728   

Total Common Stocks
(Cost $41,632,703)

         67,167,990   

 

26            SPIRIT OF AMERICA

SPIRIT OF AMERICA LARGE CAP VALUE FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Shares      Market Value  
Preferred Stocks 5.24%   

Consumer Staples 0.16%

  

CHS, Inc., Series 3, 6.75%

      2,000       $ 57,000   

CHS, Inc., Series 4, 7.50%

      2,000         57,480   
     114,480   

Energy 0.35%

  

Callon Petroleum Co., Series A, 10.00%

      5,000         249,650   

Financials 2.64%

  

Aegon NV, 8.00%

      3,000         83,430   

American Financial Group, Inc., 6.00%

      5,300         142,464   

AmTrust Financial Services, Inc., 7.50%

      2,500         64,775   

Ares Management LP, Series A, 7.00%

      2,500         64,025   

Bank of America Corp., Series EE, 6.00%

      2,500         65,100   

Bank of America Corp., Series W, 6.63%

      2,000         54,800   

BGC Partners, Inc., 8.13%

      5,000         134,700   

Capital One Financial Corp., Series D, 6.70%

      2,000         56,600   

Charles Schwab Corp. (The), Series C, 6.00%

      2,000         54,560   

Citigroup, Inc., Series L, 6.88%

      3,000         83,280   

Hancock Holding Co., 5.95%

      2,500         64,400   

Hercules Capital, Inc., 6.25%

      2,000         51,040   

JPMorgan Chase & Co., Series BB, 6.15%

      4,000         107,000   

JPMorgan Chase & Co., Series T, 6.70%

      2,000         56,480   

JPMorgan Chase & Co., Series Y, 6.13%

      4,000         107,200   

KKR & Co LP, Series B, 6.50%

      2,000         51,320   

KKR Financial Holdings LLC, Series A, 7.38%

      3,000         82,650   

Ladenburg Thalmann Financial Services, Inc., Series A, 8.00%

      7,000         168,980   

Oxford Lane Capital Corp., 8.13%

      2,000         50,500   

Prospect Capital Corp., 6.25%

      4,000         98,680   

Torchmark Corp., 6.13%

      5,000         132,150   

Wells Fargo & Co., Series W, 5.70%

      4,000         106,040   
     1,880,174   

Health Care 0.10%

  

AdCare Health Systems, Inc., Series A, 10.88%

      3,500         70,735   

Information Technology 0.15%

  

eBay, Inc., 6.00%

      4,000         106,280   

Real Estate Investment Trusts 0.86%

  

American Capital Agency Corp., 7.75%

      6,000         152,520   

Digital Realty Trust, Inc., Series H, 7.38%

      5,000         144,750   

Digital Realty Trust, Inc., Series I, 6.35%

      2,500         66,375   

Hersha Hospitality Trust, Series D, 6.50%

      3,000         75,870   

LaSalle Hotel Properties, Series J, 6.30%

      2,500         64,650   

Public Storage, Series B, 5.40%

      4,000         106,320   
     610,485   

 

    27   

SPIRIT OF AMERICA LARGE CAP VALUE FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Shares      Market Value  

Telecommunication Services 0.75%

  

Qwest Corp., 6.63%

      2,500       $ 64,275   

Qwest Corp., 6.88%

      2,000         52,340   

Qwest Corp., 7.00%

      2,500         66,450   

Qwest Corp., 7.00%

      5,000         130,350   

Telephone & Data Systems, Inc., 7.00%

      4,000         102,640   

United States Cellular Corp., 7.25%

      2,500         64,300   

United States Cellular Corp., 7.25%

      2,000         52,900   
     533,255   

Utilities 0.23%

  

DTE Energy Co., Series B, 5.38%

      2,000         52,040   

Entergy New Orleans, Inc., 5.50%

      2,000         53,700   

Southern Co./The, 6.25%

      2,000         55,760   
     161,500   

Total Preferred Stocks

      

(Cost $3,528,977)

         3,726,559   

Total Investments — 99.77%

      

(Cost $45,161,680)

         70,894,549   

Other Assets in Excess of Liabilities — 0.23%

         160,513   
     

 

 

  

NET ASSETS — 100.00%

             $ 71,055,062   

 

(a) All or a portion of the security is held as collateral for written options.
* Non-income producing security.

 

28            SPIRIT OF AMERICA

SPIRIT OF AMERICA LARGE CAP VALUE FUND

 

SCHEDULE OF WRITTEN OPTIONS    JUNE 30, 2016 (UNAUDITED)

 

     Contracts     Market Value  
Written Call Options (0.00)%   

Visa, Inc./ July 2016/ Strike Price $79.00(a)*

      (50 )    $ (950 ) 

Total Written Call Options
(Premiums Received $3,598)

            $ (950 ) 

 

(a) The option contract has a multiplier of 100 shares.
* Non-income producing security.

 

    29   

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

 

SCHEDULE OF INVESTMENTS    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  
Municipal Bonds 99.40%      

Alabama 0.10%

                  

Cullman County Health Care Authority, Refunding Revenue Bonds, Callable 02/01/19 @ 100, (OID), 6.75%, 02/01/29

    $ 100,000       $ 109,282   

Alaska 0.64%

                  

Alaska Housing Finance Corp., State Single-Family Housing, Revenue Bonds, Callable 06/01/21 @ 100, (OID), 4.25%, 12/01/40

      100,000         106,881   

Alaska Housing Finance Corp., State Single-Family Housing, Revenue Bonds, Callable 06/01/21 @ 100, (OID), 4.13%, 12/01/37

      100,000         106,524   

Northern Tobacco Securitization Corp., Refunding Revenue Bonds, Callable 08/18/16 @ 100, (OID), 5.00%, 06/01/32

      500,000         500,030   
        713,435   

Arizona 0.20%

                  

Arizona Health Facilities Authority, Refunding Revenue Bonds, Callable 07/01/19 @ 100, (OID), 5.00%, 07/01/28

      100,000         111,238   

State of Arizona Lottery Revenue, Public Improvements Revenue Bonds, Callable 01/01/20 @ 100, (AGM), 5.00%, 07/01/28

      100,000         112,316   
        223,554   

California 2.52%

                  

California Educational Facilities Authority, University & College Improvements, Revenue Bonds, Callable 10/01/21 @ 100, (OID), 6.13%, 10/01/30

      250,000         309,147   

City of Los Angeles, CA Wastewater System Revenue, Refunding Revenue Bonds, Callable 06/01/22 @ 100, (OID), 3.38%, 06/01/29

      100,000         106,870   

County of San Bernardino, CA, Refunding Bonds, Certificate of Participation, Callable 08/01/19 @ 100, (OID), 5.25%, 08/01/26

      50,000         56,197   

County of San Bernardino, CA, Refunding Bonds, Certificate of Participation, Callable 08/01/19 @ 100, 5.50%, 08/01/22

      250,000         283,595   

San Francisco, CA Bay Area Rapid Transit , Public & Highway Improvements, General Obligation Unlimited, 5.00%, 08/01/33

      250,000         307,727   

State of California, General Obligation Unlimited, Callable 08/01/25 @ 100, 5.00%, 08/01/29

      250,000         318,342   

State of California, Public Improvements, General Obligation Unlimited, Callable 04/01/19 @ 100, (OID), 6.00%, 04/01/38

      100,000         113,927   

State of California, Refunding Bonds, General Obligation Unlimited, Callable 08/01/18 @ 100, (OID), 5.00%, 08/01/34

      500,000         542,905   

State of California, General Obligation Unlimited, Callable 09/01/26 @ 100, 4.00%, 09/01/36

      250,000         288,035   

State of California, Port, Airport & Marina Improvements, General Obligation Unlimited, Callable 11/01/20 @ 100, (OID), 5.25%, 11/01/30

      250,000         294,802   

Washington Township Health Care District, Hospital Improvements, General Obligation Unlimited, Callable 08/01/19 @ 100, (OID), 5.25%, 08/01/28

      140,000         158,395   

Washington Township Health Care District, Hospital Improvements, General Obligation Unlimited, Callable 08/01/19 @ 100, (OID), 5.00%, 08/01/20

      20,000         22,509   
        2,802,451   

 

30            SPIRIT OF AMERICA

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Colorado 0.55%

                  

Colorado Health Facilities Authority, Refunding Revenue Bonds, Callable 01/01/20 @ 100, 5.25%, 01/01/30

    $ 100,000       $ 114,562   

Montrose Memorial Hospital, Inc., Hospital Improvements, Revenue Bonds, Callable 09/02/16 @ 100, (OID), 6.00%, 12/01/33

      500,000         501,215   
        615,777   

Connecticut 10.00%

                  

Connecticut Housing Finance Authority, Refunding Revenue Bonds, Callable 11/15/21 @ 100, (OID), 3.30%, 11/15/37

      250,000         259,393   

Connecticut Housing Finance Authority, Refunding Revenue Bonds, Callable 05/15/21 @ 100, (GO OF AUTH), 3.35%, 05/15/28

      250,000         265,785   

Connecticut Housing Finance Authority, Refunding Revenue Bonds, Callable 11/15/21 @ 100, (OID), 3.75%, 11/15/55

      250,000         263,328   

Connecticut Housing Finance Authority, Multi-Family Housing, Revenue Bonds, Callable 05/15/21 @ 100, (GO OF AUTH), 4.63%, 11/15/41

      215,000         236,289   

Connecticut Housing Finance Authority, Refunding Revenue Bonds, Callable 05/15/20 @ 100, (GO OF AUTH), 4.88%, 11/15/46

      100,000         109,569   

Connecticut Housing Finance Authority, Refunding Revenue Bonds, Callable 05/15/21 @ 100, 3.25%, 11/15/27

      150,000         159,066   

Connecticut Housing Finance Authority, State Single-Family Housing, Revenue Bonds, Callable 05/15/21 @ 100, 3.88%, 11/15/38

      750,000         807,210   

Connecticut Housing Finance Authority, Multi-Family Housing, Revenue Bonds, Callable 11/15/25 @ 100, 3.25%, 11/15/36

      250,000         258,888   

Connecticut Housing Finance Authority, Refunding Revenue Bonds, Callable 05/15/22 @ 100, 3.05%, 05/15/31

      250,000         261,615   

Connecticut Housing Finance Authority, State Single-Family Housing, Revenue Bonds, Callable 05/15/21 @ 100, 3.50%, 05/15/31

      250,000         266,738   

Connecticut Housing Finance Authority, State Single-Family Housing, Revenue Bonds, Callable 05/15/21 @ 100, 3.75%, 11/15/35

      500,000         536,350   

Connecticut State Health & Educational Facility Authority, Hospital Improvements, Revenue Bonds, Callable 07/01/22 @ 100, (OID), 4.50%, 07/01/38

      500,000         532,350   

Connecticut State Health & Educational Facility Authority, Revenue Bonds, Callable 07/01/18 @ 100, (BHAC-CR) (NATL-RE) (OID), 5.00%, 07/01/37

      150,000         162,824   

Connecticut State Health & Educational Facility Authority, Hospital Improvements, Revenue Bonds, Callable 07/01/24 @ 100, 5.00%, 07/01/34

      100,000         118,155   

Connecticut State Health & Educational Facility Authority, Revenue Bonds, Callable 07/01/18 @ 100, (BHAC-CR) (NATL-RE) (OID), 5.00%, 07/01/37

      100,000         107,313   

Connecticut State Health & Educational Facility Authority, Hospital Improvements, Revenue Bonds, Callable 07/01/22 @ 100, (OID), 4.25%, 07/01/31

      500,000         540,275   

Connecticut State Health & Educational Facility Authority, University & College Improvements, Revenue Bonds, Callable 07/01/20 @ 100, 5.00%, 07/01/28

      100,000         113,659   

Connecticut State Health & Educational Facility Authority, Revenue Bonds, Callable 07/01/26 @ 100, 5.00%, 07/01/34

      250,000         307,162   

Connecticut State Health & Educational Facility Authority, University & College Improvements, Revenue Bonds, Callable 07/01/20 @ 100, (OID), 5.00%, 07/01/40

      125,000         140,216   

Connecticut State Health & Educational Facility Authority, University & College Improvements, Revenue Bonds, Callable 07/01/20 @ 100, (OID), 4.75%, 07/01/30

      100,000         111,953   

Connecticut State Health & Educational Facility Authority, Hospital Improvements, Revenue Bonds, Callable 07/01/21 @ 100, (AGM) (OID), 4.00%, 07/01/37

      250,000         265,785   

Connecticut State Health & Educational Facility Authority, Hospital Improvements, Revenue Bonds, Callable 07/01/22 @ 100, 5.00%, 07/01/42

      500,000         561,995   

 

    31   

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Connecticut (cont.)

                  

Connecticut State Health & Educational Facility Authority, Healthcare, Hospital, & Nursing Home Improvements, Refunding Revenue Bonds, Callable 07/01/21 @ 100, 5.00%, 07/01/32

    $ 440,000       $ 493,456   

Connecticut State Health & Educational Facility Authority, Private Primary Schools, Revenue Bonds, Callable 07/01/22 @ 100, 4.00%, 07/01/33

      100,000         108,581   

State of Connecticut, General Obligation Unlimited, Callable 03/15/26 @ 100, 4.00%, 03/15/36

      500,000         559,160   

State of Connecticut, General Obligation Unlimited, Callable 11/15/25 @ 100, 5.00%, 11/15/26

      250,000         315,907   

State of Connecticut, Public Improvements, General Obligation Unlimited, Callable 03/01/24 @ 100, (OID), 4.00%, 03/01/33

      400,000         441,840   

State of Connecticut, General Obligation Unlimited, Callable 06/15/25 @ 100, 5.00%, 06/15/28

      250,000         307,905   

State of Connecticut, General Obligation Unlimited, Callable 03/15/26 @ 100, 5.00%, 03/15/31

      500,000         619,115   

State of Connecticut, General Obligation Unlimited, 5.00%, 06/15/24

      250,000         309,577   

State of Connecticut, Public Improvements, General Obligation Unlimited, Callable 04/15/22 @ 100, 4.00%, 04/15/32

      250,000         274,700   

State of Connecticut Special Tax Revenue, Public Improvements, Revenue Bonds, Callable 01/01/23 @ 100, 5.00%, 01/01/28

      445,000         542,455   

State of Connecticut Special Tax Revenue, Highway Improvements, Revenue Bonds, Callable 11/01/20 @ 100, 5.00%, 11/01/22

      100,000         116,498   

State of Connecticut Special Tax Revenue, Highway Improvements, Revenue Bonds, Callable 10/01/23 @ 100, 5.00%, 10/01/30

      250,000         308,047   

University of Connecticut, University & College Improvements, Revenue Bonds, Callable 02/15/24 @ 100, 5.00%, 02/15/34

      250,000         299,950   

University of Connecticut, University & College Improvements, Revenue Bonds, Callable 02/15/20 @ 100, (GO OF UNIVERSITY), 5.00%, 02/15/28

      50,000         56,880   
        11,139,989   

District of Columbia 1.54%

                  

District of Columbia, Hospital Improvements, Revenue Bonds, Callable 07/15/18 @ 101, (AGM), 5.45%, 07/15/35

      505,000         552,202   

District of Columbia Housing Finance Agency, State Multi-Family Housing, Revenue Bonds, Callable 06/15/23 @ 100, (Fannie Mae), 4.45%, 06/15/31

      320,000         350,138   

District of Columbia Housing Finance Agency, State Single-Family Housing, Revenue Bonds, Callable 12/01/21 @ 100, (Fannie Mae), 4.90%, 06/01/40

      280,000         309,730   

District of Columbia Water & Sewer Authority, Revenue Bonds, Callable 04/01/26 @ 100, 5.00%, 10/01/34

      150,000         188,268   

District of Columbia Water & Sewer Authority, Revenue Bonds, Callable 04/01/26 @ 100, 5.00%, 10/01/36

      250,000         311,785   
        1,712,123   

Florida 8.36%

                  

Citizens Property Insurance Corp., Miscellaneous Purposes, Revenue Bonds, 4.75%, 06/01/20

      150,000         171,414   

City of Miami, FL, Parking Facility Improvements, Revenue Bonds, Callable 07/01/20 @ 100, (AGM) (OID), 5.25%, 07/01/39

      125,000         142,603   

City of Miami, FL, Parking Facility Improvements, Revenue Bonds, Callable 07/01/20 @ 100, (AGM) (OID), 5.25%, 07/01/35

      105,000         120,311   

City of Miami, FL Parking System Revenue, Refunding Revenue Bonds, Callable 10/01/19 @ 100, (OID), 5.35%, 10/01/39

      500,000         561,415   

City of Orlando, FL, Public Improvements, Revenue Bonds, Callable 10/01/24 @ 100, 5.00%, 10/01/46

      1,000,000         1,199,010   

County of Miami-Dade, FL, Hospital Improvements, Revenue Bonds, Callable 06/01/19 @ 100, (OID), 5.75%, 06/01/39

      110,000         125,421   

 

32            SPIRIT OF AMERICA

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Florida (cont.)

                  

County of Miami-Dade, FL, Recreational Facility Improvements, Revenue Bonds, Callable 10/01/19 @ 100, (OID), 5.38%, 10/01/28

    $ 250,000       $ 283,967   

County of Miami-Dade, FL, Public Improvements, General Obligation Unlimited, Callable 07/01/18 @ 100, (OID), 5.63%, 07/01/38

      250,000         274,452   

County of Miami-Dade, FL Aviation Revenue, Port, Airport & Marina Improvements, Revenue Bonds, Callable 10/01/20 @ 100, (OID), 5.25%, 10/01/30

      150,000         174,948   

Escambia County Health Facilities Authority, Hospital Improvements, Revenue Bonds, Callable 08/15/20 @ 100, (OID), 5.75%, 08/15/29

      160,000         186,437   

Escambia County Health Facilities Authority, Hospital Improvements, Revenue Bonds, Callable 08/15/20 @ 100, (OID), 5.50%, 08/15/24

      250,000         288,615   

Florida Gulf Coast University Financing Corp., University & College Improvements, Revenue Bonds, Callable 02/01/21 @ 100, 5.00%, 02/01/28

      100,000         114,971   

Florida Higher Educational Facilities Financial Authority, University & College Improvements, Refunding Revenue Bonds, Callable 04/01/21 @ 100, (OID), 6.00%, 04/01/26

      130,000         154,547   

Florida Housing Finance Corp., State Single-Family Housing, Revenue Bonds, Callable 07/01/19 @ 100, (Freddie Mac) (Fannie Mae) (Ginnie Mae), 5.00%, 07/01/39

      80,000         83,814   

Florida Municipal Loan Council, Water Utility Improvements, Revenue Bonds, Callable 10/01/21 @ 100, (AGM) (OID), 5.25%, 10/01/33

      100,000         118,150   

Florida Municipal Loan Council, Water Utility Improvements, Revenue Bonds, Callable 10/01/21 @ 100, (AGM) (OID), 5.50%, 10/01/41

      100,000         118,517   

FSU Financial Assistance, Inc., State Single-Family Housing, Refunding Revenue Bonds, Callable 10/01/22 @ 100, 5.00%, 10/01/30

      500,000         595,920   

Greater Orlando Aviation Authority, Port, Airport & Marina Improvements, Revenue Bonds, Callable 10/01/20 @ 100, 5.00%, 10/01/25

      200,000         233,006   

Hillsborough County Industrial Development Authority, School Improvements, Revenue Bonds, Callable 05/15/17 @ 100, 5.13%, 05/15/37

      250,000         251,518   

JEA Electric System Revenue, Revenue Bonds, Callable 10/01/17 @ 100, (OID), 3.75%, 10/01/39

      500,000         505,595   

JEA Water & Sewer System Revenue, Revenue Bonds, Callable 10/01/17 @ 100, (OID), 4.00%, 10/01/41

      515,000         530,574   

JEA Water & Sewer System Revenue, Revenue Bonds, Callable 10/01/17 @ 100, (OID), 3.88%, 10/01/37

      250,000         257,023   

Miami-Dade County Educational Facilities Authority, University & College Improvements, Revenue Bonds, (AMBAC), 5.25%, 04/01/31

      260,000         355,394   

North Sumter County Utility Dependent District, Water & Utility Improvements, Revenue Bonds, Callable 10/01/20 @ 100, (AGM) (OID), 5.38%, 10/01/40

      400,000         461,244   

Orange County Health Facilities Authority, Hospital Improvements, Revenue Bonds, 5.25%, 10/01/19

      160,000         181,598   

Palm Beach County School District, Refunding Bonds, Certificate of Participation, Callable 08/01/21 @ 100, 5.00%, 08/01/24

      45,000         53,142   

School Board of Miami-Dade County/The, Certificate of Participation, Callable 02/01/26 @ 100, 4.00%, 02/01/33

      1,460,000         1,655,976   

Tampa-Hillsborough County Expressway Authority, Refunding Revenue Bonds, Callable 07/01/22 @ 100, 5.00%, 07/01/37

      100,000         116,539   
        9,316,121   

Georgia 1.65%

                  

Albany-Dougherty Inner City Authority, University & College Improvements, Revenue Bonds, Callable 07/01/20 @ 100, 5.00%, 07/01/35

      250,000         281,975   

Albany-Dougherty Payroll Development Authority, University & College Improvements, Revenue Bonds, Callable 06/15/20 @ 100, (AGM) (OID), 5.50%, 06/15/36

      325,000         377,552   

 

    33   

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Georgia (cont.)

                  

City of Atlanta, GA Water & Wastewater Revenue, Refunding Revenue Bonds, Callable 05/01/25 @ 100, 5.00%, 11/01/34

    $ 200,000       $ 248,104   

City of Atlanta, GA Water & Wastewater Revenue, Refunding Revenue Bonds, Callable 11/01/19 @ 100, (AGM) (OID), 5.38%, 11/01/39

      250,000         282,377   

Fulton County Development Authority, Refunding Revenue Bonds, Callable 10/01/22 @ 100, (OID), 4.25%, 10/01/37

      100,000         109,862   

Fulton County Development Authority, Refunding Revenue Bonds, 5.00%, 10/01/22

      150,000         181,041   

Fulton County Development Authority, University & College Improvements, Revenue Bonds, Callable 04/01/21 @ 100, (OID), 5.75%, 10/01/31

      50,000         59,603   

Fulton County Development Authority, University & College Improvements, Revenue Bonds, Callable 04/01/21 @ 100, (OID), 5.75%, 10/01/41

      250,000         296,380   
        1,836,894   

Hawaii 0.04%

                  

Hawai’i Pacific Health, Hospital Improvements, Revenue Bonds, Callable 07/01/20 @ 100, (OID), 5.75%, 07/01/40

      40,000         46,757   

Illinois 1.36%

                  

Illinois Finance Authority, Refunding Revenue Bonds, Callable 02/15/20 @ 100, (OID), 6.00%, 08/15/38

      175,000         195,169   

Illinois Finance Authority, Hospital Improvements, Revenue Bonds, Callable 08/15/21 @ 100, (OID), 5.88%, 08/15/34

      100,000         120,778   

Illinois Finance Authority, Hospital Improvements, Revenue Bonds, Callable 08/15/18 @ 100, (OID), 5.25%, 08/15/47

      250,000         265,725   

Illinois Finance Authority, Refunding Revenue Bonds, Callable 02/15/20 @ 100, (OID), 5.50%, 08/15/24

      215,000         241,385   

Railsplitter Tobacco Settlement Authority, Public Improvements, Revenue Bonds, Callable 06/01/21 @ 100, (OID), 6.00%, 06/01/28

      250,000         299,837   

Railsplitter Tobacco Settlement Authority, Public Improvements, Revenue Bonds, (OID), 5.13%, 06/01/19

      250,000         278,440   

University of Illinois, University & College Improvements, Revenue Bonds, Callable 04/01/21 @ 100, 5.50%, 04/01/31

      100,000         114,713   
        1,516,047   

Indiana 2.72%

                  

Indiana Finance Authority, Refunding Revenue Bonds, Callable 12/01/19 @ 100, (OID), 5.25%, 12/01/38

      265,000         296,718   

Indiana Finance Authority, Refunding Revenue Bonds, Callable 05/01/19 @ 100, (OID), 5.75%, 05/01/31

      115,000         129,941   

Indiana Finance Authority, Hospital Improvements, Revenue Bonds, Callable 11/01/19 @ 100, (OID), 5.25%, 11/01/39

      250,000         281,367   

Town of Munster, IN, Public Improvements, Tax Allocation Bonds, Callable 07/15/21 @ 100, (OID), 5.13%, 01/15/31

      2,000,000         2,326,480   
        3,034,506   

Iowa 0.60%

                  

Iowa Finance Authority, Revenue Bonds, Callable 08/15/19 @ 100, (OID), 5.38%, 08/15/29

      300,000         342,549   

State of Iowa, Revenue Bonds, Callable 06/01/26 @ 100, 5.00%, 06/01/27

      250,000         322,895   
        665,444   

 

34            SPIRIT OF AMERICA

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Kansas 0.26%

                  

Kansas Development Finance Authority, Revenue Bonds, Callable 01/01/20 @ 100, 5.00%, 01/01/35

    $ 35,000       $ 39,032   

Kansas Development Finance Authority, Revenue Bonds, Callable 01/01/20 @ 100, 5.00%, 01/01/35

      215,000         245,663   
        284,695   

Kentucky 0.33%

                  

Kentucky Municipal Power Agency, Electric Lights & Power Improvements, Revenue Bonds, Callable 09/01/20 @ 100, (AGM), 5.00%, 09/01/23

      325,000         373,028   

Louisiana 0.84%

                  

Louisiana Local Government Environmental Facilities & Community Development Authority, Sewer Improvements, Revenue Bonds, Callable 02/01/23 @ 100, (OID), 4.00%, 02/01/48

      500,000         532,675   

Louisiana Local Government Environmental Facilities & Community Development Authority, Sewer Improvements, Revenue Bonds, Callable 02/01/23 @ 100, 5.00%, 02/01/35

      100,000         117,573   

Louisiana Public Facilities Authority, Refunding Revenue Bonds, Callable 07/01/19 @ 100, (OID), 6.00%, 07/01/29

      250,000         286,525   
        936,773   

Maine 1.06%

                  

Maine Health & Higher Educational Facilities Authority, Refunding Revenue Bonds, Callable 07/01/22 @ 100, (OID), 3.63%, 07/01/41

      500,000         527,105   

Maine State Housing Authority, State Single-Family Housing, Revenue Bonds, Callable 11/15/22 @ 100, 4.50%, 11/15/37

      250,000         273,143   

Maine State Housing Authority, State Single-Family Housing, Revenue Bonds, Callable 11/15/24 @ 100, 3.75%, 11/15/44

      100,000         104,601   

Maine State Housing Authority, State Single-Family Housing, Revenue Bonds, Callable 11/15/22 @ 100, 3.45%, 11/15/32

      100,000         106,247   

Maine State Housing Authority, State Single-Family Housing, Revenue Bonds, Callable 11/15/22 @ 100, 3.60%, 11/15/36

      100,000         106,549   

Maine Turnpike Authority, Refunding Revenue Bonds, Callable 07/01/25 @ 100, 5.00%, 07/01/26

      50,000         64,080   
        1,181,725   

Maryland 1.56%

                  

Maryland Community Development Administration, State Single-Family Housing, Revenue Bonds, Callable 09/01/18 @ 100, 4.75%, 09/01/39

      250,000         261,068   

Maryland Economic Development Corp., Port, Airport & Marina Improvements, Revenue Bonds, Callable 06/01/20 @ 100, (OID), 5.75%, 06/01/35

      445,000         497,216   

Maryland Economic Development Corp., Port, Airport & Marina Improvements, Revenue Bonds, Callable 06/01/20 @ 100, (OID), 5.38%, 06/01/25

      500,000         555,090   

Maryland Health & Higher Educational Facilities Authority, Hospital Improvements, Revenue Bonds, Callable 05/15/20 @ 100, (OID), 4.63%, 05/15/35

      60,000         66,124   

Montgomery County Housing Opportunities Commission, Revenue Bonds, Callable 01/01/22 @ 100, (Freddie Mac) (Fannie Mae) (Ginnie Mae), 3.63%, 07/01/33

      345,000         359,290   
        1,738,788   

Massachusetts 0.93%

                  

Massachusetts Educational Financing Authority, Refunding Revenue Bonds, Callable 01/01/20 @ 100, (OID), 5.25%, 01/01/29

      55,000         59,393   

Massachusetts Educational Financing Authority, Refunding Revenue Bonds, Callable 01/01/20 @ 100, (OID), 5.20%, 01/01/27

      125,000         134,994   

 

    35   

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Massachusetts (cont.)

                  

Massachusetts Health & Educational Facilities Authority, Healthcare, Hospital, & Nursing Home Improvements, Refunding Revenue Bonds, Callable 07/01/20 @ 100, (OID), 5.00%, 07/01/30

    $ 130,000       $ 143,819   

Massachusetts Health & Educational Facilities Authority, Refunding Revenue Bonds, 4.25%, 07/01/18

      150,000         157,982   

Massachusetts Housing Finance Agency, State Multi-Family Housing, Revenue Bonds, Callable 06/01/20 @ 100, (FHA) (INS), 5.25%, 12/01/35

      175,000         193,485   

Massachusetts Housing Finance Agency, State Multi-Family Housing, Revenue Bonds, Callable 06/01/19 @ 100, 5.13%, 12/01/39

      100,000         107,542   

Massachusetts Housing Finance Agency, State Multi-Family Housing, Revenue Bonds, Callable 06/01/19 @ 100, 4.85%, 12/01/29

      100,000         107,533   

Massachusetts School Building Authority, Revenue Bonds, Callable 08/15/25 @ 100, 5.00%, 08/15/26

      100,000         130,187   
        1,034,935   

Michigan 3.09%

                  

Michigan Public Educational Facilities Authority, School Improvements, Refunding Revenue Bonds, Callable 09/02/16 @ 100, 6.00%, 12/01/35

      500,000         500,150   

Michigan State Building Authority, Refunding Revenue Bonds, Callable 10/15/21 @ 100, (OID), 5.38%, 10/15/36

      100,000         116,486   

Michigan State Building Authority, Refunding Revenue Bonds, Callable 10/15/21 @ 100, (OID), 5.20%, 10/15/31

      750,000         871,192   

Michigan State Housing Development Authority, State Multi-Family Housing, Revenue Bonds, Callable 04/01/22 @ 100, (GO OF AUTH), 4.50%, 10/01/36

      710,000         773,133   

Michigan State Housing Development Authority, State Multi-Family Housing, Revenue Bonds, Callable 06/01/21 @ 100, (GO OF AUTH), 4.60%, 12/01/26

      25,000         26,617   

Michigan Tobacco Settlement Finance Authority, Refunding Revenue Bonds, Callable 06/01/18 @ 100, (OID), 6.88%, 06/01/42

      250,000         259,265   

Michigan Tobacco Settlement Finance Authority, Miscellaneous Purposes, Revenue Bonds, Callable 06/01/17 @ 100, (OID), 6.00%, 06/01/48

      595,000         600,105   

Royal Oak Hospital Finance Authority, Refunding Revenue Bonds, Callable 08/01/19 @ 100, 6.38%, 08/01/29

      250,000         292,175   
        3,439,123   

Mississippi 0.25%

                  

Mississippi Hospital Equipment & Facilities Authority, Refunding Revenue Bonds, Callable 01/01/20 @ 100, 5.25%, 01/01/30

      250,000         282,817   

Missouri 0.93%

                  

Hanley Road Corridor Transportation Development District, Refunding Revenue Bonds, Callable 10/01/19 @ 100, (OID), 5.88%, 10/01/36

      275,000         301,601   

Health & Educational Facilities Authority of the State of Missouri, Healthcare, Hospital & Nursing Home Improvements, Revenue Bonds, Callable 11/15/22 @ 100, (OID), 3.75%, 11/15/39

      100,000         105,317   

Health & Educational Facilities Authority of the State of Missouri, Healthcare, Hospital & Nursing Home Improvements, Revenue Bonds, Callable 11/15/24 @ 100, (OID), 4.00%, 11/15/45

      500,000         544,425   

Missouri Housing Development Commission, State Single-Family Housing, Revenue Bonds, Callable 09/01/19 @ 100, (Freddie Mac) (Fannie Mae) (Ginnie Mae), 4.70%, 03/01/35

      80,000         85,239   
        1,036,582   

Nebraska 0.27%

                  

Nebraska Public Power District, Electric Lights & Power Improvements, Revenue Bonds, Callable 01/01/22 @ 100, 5.00%, 01/01/25

      250,000         299,265   

 

36            SPIRIT OF AMERICA

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Nevada 0.82%

                  

City of Reno, NV, Hospital Improvements, Revenue Bonds, Callable 06/01/18 @ 100, (AMBAC) (OID), 5.50%, 06/01/28

    $ 50,000       $ 54,062   

Nevada Housing Division, State Single-Family Housing, Revenue Bonds, Callable 04/01/20 @ 100, (Ginnie Mae), 4.40%, 04/01/27

      45,000         46,752   

Nevada System of Higher Education, Certificate Participation, Callable 07/01/26 @ 100, 4.00%, 07/01/27

      700,000         807,660   
        908,474   

New Hampshire 0.10%

                  

New Hampshire Health and Education Facilities Authority Act, Refunding Revenue Bonds, Callable 10/01/19 @ 100, (FHA), 6.25%, 04/01/26

      100,000         116,779   

New Jersey 11.55%

                  

Essex County Improvement Authority, Public Improvements, Revenue Bonds, Callable 11/01/20 @ 100, (AGM) (OID), 5.75%, 11/01/30

      250,000         283,280   

Hudson County Improvement Authority, Refunding Revenue Bonds, (AGM), 5.40%, 10/01/25

      150,000         195,608   

New Jersey Economic Development Authority, Revenue Bonds, Callable 03/01/22 @ 100, 5.00%, 03/01/25

      1,000,000         1,116,460   

New Jersey Economic Development Authority, Refunding Revenue Bonds, Callable 03/01/21 @ 100, (State Appropriation) (OID), 5.25%, 09/01/26

      920,000         1,013,858   

New Jersey Economic Development Authority, School Improvements, Revenue Bonds, Callable 06/15/20 @ 100, 5.00%, 12/15/32

      100,000         107,728   

New Jersey Economic Development Authority, School Improvements, Refunding Revenue Bonds, Callable 03/01/23 @ 100, 5.00%, 03/01/31

      300,000         331,359   

New Jersey Economic Development Authority, University & College Improvements, Revenue Bonds, Callable 06/15/23 @ 100, 5.00%, 06/15/30

      250,000         300,897   

New Jersey Health Care Facilities Financing Authority, Hospital Improvements, Revenue Bonds, Callable 10/01/19 @ 100, (State Appropriation) (OID), 5.75%, 10/01/31

      545,000         609,626   

New Jersey Health Care Facilities Financing Authority, Refunding Revenue Bonds, Callable 07/01/21 @ 100, (OID), 6.00%, 07/01/37

      200,000         241,904   

New Jersey Health Care Facilities Financing Authority, Refunding Revenue Bonds, Callable 07/01/18 @ 100, (OID), 5.00%, 07/01/27

      275,000         297,429   

New Jersey Higher Education Student Assistance Authority, Refunding Revenue Bonds, Callable 12/01/19 @ 100, 5.25%, 12/01/32

      100,000         109,428   

New Jersey Higher Education Student Assistance Authority, Revenue Bonds, Callable 12/01/20 @ 100, (OID), 5.00%, 12/01/36

      65,000         71,934   

New Jersey Higher Education Student Assistance Authority, Refunding Revenue Bonds, Callable 12/01/19 @ 100, 5.25%, 12/01/28

      180,000         196,601   

New Jersey Housing & Mortgage Finance Agency, Revenue Bonds, Callable 11/01/25 @ 100, 3.50%, 11/01/36

      500,000         517,500   

New Jersey Housing & Mortgage Finance Agency, State Single-Family Housing, Revenue Bonds, Callable 04/01/19 @ 100, 5.00%, 10/01/34

      80,000         83,239   

New Jersey Housing & Mortgage Finance Agency, Revenue Bonds, Callable 11/01/25 @ 100, 3.90%, 11/01/50

      175,000         183,001   

New Jersey Transportation Trust Fund Authority, Revenue Bonds, Callable 12/15/24 @ 100, 5.00%, 06/15/32

      750,000         848,572   

New Jersey Transportation Trust Fund Authority, Transit Improvements, Revenue Bonds, Callable 06/15/22 @ 100, (State Appropriation), 5.00%, 06/15/42

      675,000         740,637   

New Jersey Transportation Trust Fund Authority, Transit Improvements, Revenue Bonds, Callable 06/15/21 @ 100, (State Appropriation), 5.00%, 06/15/22

      150,000         166,224   

 

    37   

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

New Jersey (cont.)

                  

New Jersey Transportation Trust Fund Authority, Revenue Bonds, 5.00%, 06/15/21

    $ 150,000       $ 167,624   

New Jersey Transportation Trust Fund Authority, Transit Improvements, Revenue Bonds, Callable 06/15/21 @ 100, (State Appropriation) (OID), 5.25%, 06/15/31

      220,000         244,710   

New Jersey Transportation Trust Fund Authority, Transit Improvements, Revenue Bonds, Callable 06/15/21 @ 100, (OID), 5.00%, 06/15/42

      250,000         274,730   

New Jersey Transportation Trust Fund Authority, Transit Improvements, Revenue Bonds, Callable 06/15/22 @ 100, 5.00%, 06/15/38

      1,000,000         1,099,520   

New Jersey Turnpike Authority, Highway Improvements, Revenue Bonds, Callable 07/01/22 @ 100, 5.00%, 01/01/31

      200,000         240,822   

New Jersey Turnpike Authority, Highway Improvements, Revenue Bonds, Callable 07/01/22 @ 100, 5.00%, 01/01/32

      500,000         601,100   

New Jersey Turnpike Authority, Revenue Bonds, Callable 01/01/23 @ 100, 5.00%, 01/01/29

      500,000         602,630   

Newark Housing Authority, Public Improvements, Revenue Bonds, Callable 12/01/19 @ 100, 6.75%, 12/01/38

      750,000         900,060   

State of New Jersey, Public Improvements, General Obligation Unlimited, Callable 06/01/25 @ 100, 4.00%, 06/01/34

      250,000         277,862   

Tenafly School District, Refunding Bonds, General Obligation Unlimited, Callable 07/15/22 @ 100, (OID), 3.00%, 07/15/30

      250,000         263,395   

Tenafly School District, Refunding Bonds, General Obligation Unlimited, Callable 07/15/22 @ 100, (OID), 3.00%, 07/15/29

      250,000         264,123   

Tobacco Settlement Financing Corp., Refunding Bonds, Revenue Bonds, Callable 06/01/17 @ 100, (OID), 5.00%, 06/01/41

      525,000         513,271   
        12,865,132   

New Mexico 1.54%

                  

New Mexico Hospital Equipment Loan Council, Hospital Improvements, Revenue Bonds, Callable 08/01/19 @ 100, 5.13%, 08/01/35

      445,000         497,479   

New Mexico Hospital Equipment Loan Council, Hospital Improvements, Revenue Bonds, Callable 08/01/19 @ 100, (OID), 5.00%, 08/01/39

      225,000         248,535   

New Mexico Hospital Equipment Loan Council, Hospital Improvements, Revenue Bonds, Callable 08/01/22 @ 100, (OID), 4.00%, 08/01/42

      500,000         533,555   

New Mexico Mortgage Finance Authority, Revenue Bonds, Callable 03/01/22 @ 100, (Freddie Mac) (Fannie Mae) (Ginnie Mae) (GTD) (INS), 3.25%, 09/01/27

      130,000         135,038   

New Mexico Mortgage Finance Authority, Revenue Bonds, Callable 03/01/22 @ 100, (Freddie Mac) (Fannie Mae) (Ginnie Mae) (GTD) (INS), 3.55%, 09/01/32

      210,000         217,730   

Village of Los Ranchos de Albuquerque, NM, Refunding Revenue Bonds, Callable 09/01/20 @ 100, (OID), 4.50%, 09/01/40

      75,000         82,152   
        1,714,489   

New York 24.29%

                  

Hudson Yards Infrastructure Corp., Public Improvements, Revenue Bonds, Callable 02/15/21 @ 100, 5.25%, 02/15/47

      200,000         225,934   

Hudson Yards Infrastructure Corp., Public Improvements, Revenue Bonds, Callable 02/15/21 @ 100, 5.75%, 02/15/47

      250,000         299,230   

Hudson Yards Infrastructure Corp., Transit Improvements, Revenue Bonds, Callable 02/15/17 @ 100, 5.00%, 02/15/47

      60,000         61,299   

Long Island Power Authority, Electric Lights & Power Improvements, Revenue Bonds, Callable 05/01/21 @ 100, (AGM), 5.00%, 05/01/36

      125,000         143,134   

Long Island Power Authority, Electric Lights & Power Improvements, Revenue Bonds, Callable 04/01/19 @ 100, (OID), 5.75%, 04/01/39

      250,000         278,730   

 

38            SPIRIT OF AMERICA

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

New York (cont.)

                  

Metropolitan Transportation Authority, Transit Improvements, Revenue Bonds, Callable 11/15/21 @ 100, 5.00%, 11/15/36

    $ 250,000       $ 293,337   

Metropolitan Transportation Authority, Transit Improvements, Revenue Bonds, Callable 11/15/21 @ 100, (OID), 4.88%, 11/15/46

      100,000         112,479   

Metropolitan Transportation Authority, Transit Improvements, Revenue Bonds, Callable 11/15/21 @ 100, (OID), 4.75%, 11/15/36

      250,000         286,405   

Metropolitan Transportation Authority, Transit Improvements, Revenue Bonds, Callable 05/15/24 @ 100, 5.25%, 11/15/44

      1,000,000         1,227,070   

Metropolitan Transportation Authority, Revenue Bonds, Callable 11/15/26 @ 100, 4.00%, 11/15/34

      200,000         226,054   

Metropolitan Transportation Authority, Transit Improvements, Revenue Bonds, Callable 05/15/23 @ 100, 5.00%, 11/15/33

      100,000         120,200   

Metropolitan Transportation Authority, Transit Improvements, Revenue Bonds, Callable 05/15/23 @ 100, 5.00%, 11/15/43

      500,000         592,855   

Metropolitan Transportation Authority, Revenue Bonds, Callable 11/15/25 @ 100, 5.25%, 11/15/28

      500,000         646,945   

Metropolitan Transportation Authority, Transit Improvements, Refunding Revenue Bonds, Callable 05/15/25 @ 100, 5.00%, 11/15/28

      250,000         312,675   

Metropolitan Transportation Authority, Transit Improvements, Revenue Bonds, Callable 05/15/25 @ 100, 5.00%, 11/15/45

      500,000         603,170   

Metropolitan Transportation Authority, Transit Improvements, Revenue Bonds, Callable 05/15/23 @ 100, 5.00%, 11/15/32

      500,000         602,785   

Metropolitan Transportation Authority, Transit Improvements, Revenue Bonds, Callable 11/15/21 @ 100, (OID), 5.00%, 11/15/37

      250,000         292,775   

Metropolitan Transportation Authority, Refunding Revenue Bonds, Callable 11/15/23 @ 100, 5.25%, 11/15/28

      50,000         62,463   

Metropolitan Transportation Authority, Transit Improvements, Revenue Bonds, Callable 11/15/20 @ 100, (OID), 5.25%, 11/15/34

      500,000         587,590   

Monroe County Industrial Development Corp., Hospital Improvements, Revenue Bonds, Callable 02/15/21 @ 100, (FHA) (INS), 5.75%, 08/15/35

      250,000         298,242   

New York City Housing Development Corp., Local Multi-Family Housing, Revenue Bonds, Callable 11/01/19 @ 100, 4.95%, 05/01/47

      500,000         533,175   

New York City Housing Development Corp., Local Multi-Family Housing, Revenue Bonds, Callable 03/16/20 @ 100, 4.90%, 11/01/40

      250,000         272,795   

New York City Housing Development Corp., Local Multi-Family Housing, Revenue Bonds, Callable 05/01/20 @ 100, 4.85%, 11/01/35

      250,000         275,535   

New York City Housing Development Corp., Local Multi-Family Housing, Revenue Bonds, 5.00%, 05/01/20

      150,000         171,155   

New York City Housing Development Corp., Local Multi-Family Housing, Revenue Bonds, Callable 11/01/20 @ 100, 4.75%, 05/01/41

      250,000         274,392   

New York City Housing Development Corp., Local Multi-Family Housing, Revenue Bonds, Callable 05/01/19 @ 100, 4.85%, 05/01/41

      250,000         266,453   

New York City Housing Development Corp., Local Multi-Family Housing, Revenue Bonds, Callable 05/01/19 @ 100, 4.60%, 11/01/29

      100,000         109,018   

New York City Housing Development Corp., Refunding Revenue Bonds, Callable 05/01/19 @ 100, 4.80%, 05/01/36

      250,000         270,128   

New York City Housing Development Corp., Local Multi-Family Housing, Revenue Bonds, Callable 05/01/19 @ 100, 4.75%, 11/01/29

      100,000         109,577   

New York City Industrial Development Agency, Recreational Facility Improvements, Revenue Bonds, Callable 01/01/19 @ 100, (OID), 6.50%, 01/01/46

      650,000         728,169   

New York City Industrial Development Agency, Recreational Facility Improvements, Revenue Bonds, Callable 09/02/16 @ 100, (FGIC) (OID), 4.50%, 03/01/39

      100,000         100,195   

 

    39   

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

New York (cont.)

                  

New York City Industrial Development Agency, Recreational Facility Improvements, Revenue Bonds, Callable 09/02/16 @ 100, (FGIC), 5.00%, 03/01/46

    $ 1,500,000       $ 1,507,950   

New York City Industrial Development Agency, Recreational Facility Improvements, Revenue Bonds, Callable 09/02/16 @ 100, (FGIC), 5.00%, 03/01/31

      145,000         145,938   

New York City Industrial Development Agency, Recreational Facility Improvements, Revenue Bonds, Callable 09/02/16 @ 100, 5.00%, 03/01/36

      115,000         115,699   

New York City Transitional Finance Authority Building Aid Revenue, Public Improvements, Revenue Bonds, Callable 01/15/25 @ 100, (State Aid Withholding), 5.00%, 07/15/27

      250,000         316,120   

New York City Transitional Finance Authority Building Aid Revenue, Revenue Bonds, Callable 01/15/25 @ 100, (State Aid Withholding), 5.00%, 07/15/35

      500,000         612,635   

New York City Transitional Finance Authority Building Aid Revenue, Revenue Bonds, Callable 01/15/26 @ 100, (State Aid Withholding), 5.00%, 07/15/31

      750,000         948,712   

New York City Transitional Finance Authority Building Aid Revenue, School Improvements, Revenue Bonds, Callable 01/15/19 @ 100, (State Aid Withholding) (OID), 5.38%, 01/15/34

      250,000         277,535   

New York City Transitional Finance Authority Future Tax Secured Revenue, Public Improvements, Revenue Bonds, Callable 08/01/25 @ 100, 5.00%, 08/01/27

      25,000         32,100   

New York City Transitional Finance Authority Future Tax Secured Revenue, Public Improvements, Revenue Bonds, Callable 11/01/20 @ 100, (OID), 5.00%, 11/01/33

      500,000         580,655   

New York City Transitional Finance Authority Future Tax Secured Revenue, Revenue Bonds, Callable 08/01/25 @ 100, 5.00%, 08/01/34

      1,000,000         1,251,460   

New York City Transitional Finance Authority Future Tax Secured Revenue, Public Improvements, Revenue Bonds, 5.00%, 08/01/23

      100,000         125,220   

New York City Transitional Finance Authority Future Tax Secured Revenue, Public Improvements, Revenue Bonds, 5.00%, 08/01/21

      100,000         119,614   

New York City Transitional Finance Authority Future Tax Secured Revenue, Public Improvements, Revenue Bonds, 5.00%, 08/01/24

      100,000         127,904   

New York City Water & Sewer System, Refunding Revenue Bonds, Callable 12/15/21 @ 100, 5.00%, 06/15/45

      250,000         293,130   

New York City Water & Sewer System, Revenue Bonds, Callable 06/15/22 @ 100, 5.00%, 06/15/45

      700,000         827,414   

New York City Water & Sewer System, Revenue Bonds, Callable 12/15/22 @ 100, 5.00%, 06/15/47

      325,000         387,767   

New York Liberty Development Corp., Refunding Revenue Bonds, Callable 01/15/20 @ 100, 5.63%, 07/15/47

      250,000         288,912   

New York State Dormitory Authority, University & College Improvements, Revenue Bonds, Callable 07/01/21 @ 100, (OID), 5.25%, 07/01/31

      40,000         47,519   

New York State Dormitory Authority, Revenue Bonds, 5.00%, 08/15/21

      100,000         118,555   

New York State Dormitory Authority, University & College Improvements, Revenue Bonds, Callable 07/01/19 @ 100, (INS) (OID), 5.25%, 07/01/33

      200,000         226,400   

New York State Dormitory Authority, Hospital Improvements, Revenue Bonds, Callable 05/01/19 @ 100, 5.50%, 05/01/30

      500,000         566,130   

New York State Dormitory Authority, School Improvements, Revenue Bonds, Callable 10/01/20 @ 100, (AGM), 4.75%, 10/01/40

      165,000         184,477   

New York State Dormitory Authority, Refunding Revenue Bonds, Callable 10/01/22 @ 100, (State Aid Withholding), 3.25%, 04/01/31

      280,000         294,034   

New York State Dormitory Authority, Revenue Bonds, 5.00%, 05/15/20

      100,000         115,471   

New York State Dormitory Authority, Revenue Bonds, 5.00%, 05/15/22

      165,000         200,262   

New York State Dormitory Authority, Revenue Bonds, Callable 07/01/18 @ 100, 5.25%, 07/01/48

      750,000         816,720   

New York State Dormitory Authority, Revenue Bonds, Callable 07/01/25 @ 100, 5.00%, 07/01/37

      385,000         474,224   

New York State Environmental Facilities Corp, Revenue Bonds, Callable 06/15/26 @ 100, 4.00%, 06/15/36

      250,000         287,335   

New York State Housing Finance Agency, State Multi-Family Housing, Revenue Bonds, Callable 05/01/20 @ 100, 4.85%, 11/01/36

      100,000         108,544   

 

40            SPIRIT OF AMERICA

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

New York (cont.)

                  

New York State Housing Finance Agency, State Multi-Family Housing, Revenue Bonds, Callable 05/01/19 @ 100, 4.80%, 11/01/34

    $ 250,000       $ 267,490   

New York State Housing Finance Agency, State Multi-Family Housing, Revenue Bonds, Callable 05/01/19 @ 100, 4.85%, 11/01/41

      205,000         219,157   

New York State Housing Finance Agency, State Multi-Family Housing, Revenue Bonds, Callable 05/01/20 @ 100, (SONYMA), 4.75%, 05/01/31

      200,000         217,468   

New York State Housing Finance Agency, State Multi-Family Housing, Revenue Bonds, Callable 05/01/19 @ 100, 5.00%, 11/01/45

      150,000         160,673   

New York State Housing Finance Agency, State Multi-Family Housing, Revenue Bonds, Callable 05/01/20 @ 100, (SONYMA), 5.20%, 05/01/42

      500,000         546,860   

New York State Thruway Authority, Revenue Bonds, Callable 01/01/26 @ 100, 4.00%, 01/01/37

      100,000         113,502   

New York State Urban Development Corp., Public Improvements, Revenue Bonds, 5.00%, 03/15/20

      100,000         115,089   

Orange County Funding Corp., University & College Improvements, Revenue Bonds, Callable 07/01/22 @ 100, (OID), 3.25%, 07/01/32

      500,000         500,810   

Orange County Funding Corp., University & College Improvements, Revenue Bonds, Callable 07/01/22 @ 100, (OID), 3.25%, 07/01/32

      500,000         500,810   

Port Authority of New York & New Jersey, Port, Airport & Marina Improvements, Revenue Bonds, Callable 12/01/22 @ 100, (OID), 3.25%, 12/01/38

      250,000         260,425   

Port Authority of New York & New Jersey, Port, Airport & Marina Improvements, Revenue Bonds, Callable 12/01/22 @ 100, (OID), 3.25%, 12/01/42

      250,000         258,925   

State of New York Mortgage Agency, State Single-Family Housing, Revenue Bonds, Callable 10/01/21 @ 100, 3.75%, 10/01/32

      1,000,000         1,051,670   

State of New York Mortgage Agency, State Single-Family Housing, Revenue Bonds, 5.00%, 04/01/18

      50,000         53,424   

Triborough Bridge & Tunnel Authority, Revenue Bonds, Callable 11/15/25 @ 100, 5.00%, 11/15/27

      100,000         129,239   

Triborough Bridge & Tunnel Authority, Revenue Bonds, Callable 11/15/25 @ 100, 5.00%, 11/15/35

      250,000         313,715   

Triborough Bridge & Tunnel Authority, Revenue Bonds, Callable 11/15/25 @ 100, 5.00%, 11/15/40

      310,000         384,524   

Triborough Bridge & Tunnel Authority, Revenue Bonds, 5.00%, 11/15/21

      50,000         60,351   

Triborough Bridge & Tunnel Authority, Revenue Bonds, 5.00%, 11/15/23

      100,000         126,363   
        27,062,895   

North Carolina 0.65%

                  

Charlotte-Mecklenburg Hospital Authority/The, Refunding Revenue Bonds, Callable 01/15/19 @ 100, (OID), 5.25%, 01/15/34

      100,000         109,990   

North Carolina Eastern Municipal Power Agency, Refunding Revenue Bonds, Callable 01/01/19 @ 100, (OID), 4.50%, 01/01/22

      250,000         273,048   

North Carolina Turnpike Authority, Highway Improvements, Revenue Bonds, Callable 01/01/19 @ 100, (OID), 5.75%, 01/01/39

      200,000         221,598   

University of North Carolina at Charlotte/The, University & College Improvements, Revenue Bonds, Callable 04/01/25 @ 100, 5.00%, 04/01/40

      100,000         122,407   
        727,043   

North Dakota 0.09%

                  

City of Bismarck, ND Sanitary Sewer Revenue, Revenue Bonds, Callable 05/01/25 @ 100, 3.00%, 05/01/29

      100,000         104,904   

Ohio 0.70%

                  

Buckeye Tobacco Settlement Financing Authority, Miscellaneous Purposes, Revenue Bonds, Callable 06/01/17 @ 100, 6.50%, 06/01/47

      80,000         82,104   

Buckeye Tobacco Settlement Financing Authority, Miscellaneous Purposes, Revenue Bonds, Callable 06/01/17 @ 100, (OID), 6.00%, 06/01/42

      420,000         420,118   

 

    41   

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Ohio (cont.)

                  

Ohio Higher Educational Facility Commission, Refunding Revenue Bonds, Callable 07/01/20 @ 100, (OID), 5.00%, 07/01/44

    $ 250,000       $ 280,432   
        782,654   

Oklahoma 0.24%

                  

Oklahoma Municipal Power Authority, Electric Lights & Power Improvements, Revenue Bonds, Callable 01/01/23 @ 100, 4.00%, 01/01/47

      250,000         271,545   

Oregon 0.34%

                  

Medford Hospital Facilities Authority, Refunding Revenue Bonds, Callable 08/15/20 @ 100, (AGM), 5.00%, 08/15/21

      100,000         115,101   

Oregon Health & Science University, Refunding Revenue Bonds, Callable 07/01/22 @ 100, 5.00%, 07/01/32

      35,000         41,811   

Oregon State Facilities Authority, Refunding Revenue Bonds, Callable 11/01/19 @ 100, 5.00%, 11/01/39

      200,000         219,374   
        376,286   

Pennsylvania 7.27%

                  

Allegheny County Sanitary Authority, Sewer Improvements, Revenue Bonds, Callable 12/01/23 @ 100, 5.25%, 12/01/44

      500,000         601,370   

City of Philadelphia, PA, Refunding Bonds, General Obligation Unlimited, Callable 08/01/20 @ 100, (AGM) (OID), 5.25%, 08/01/26

      135,000         156,068   

City of Philadelphia, PA, Refunding Bonds, General Obligation Unlimited, Callable 8/01/16 @ 100, (OID), 5.88%, 08/01/31

      220,000         220,825   

City of Philadelphia, PA, Public Improvements Refunding Bonds, General Obligation Limited, Callable 07/15/16 @ 100, (OID), 7.13%, 07/15/38

      750,000         751,245   

Montgomery County Industrial Development Authority, Hospital Improvements, Revenue Bonds, Callable 08/01/20 @ 100, (FHA) (INS), 5.38%, 08/01/38

      500,000         588,985   

Pennsylvania Higher Educational Facilities Authority, Hospital Improvements, Revenue Bonds, Callable 08/15/21 @ 100, (OID), 5.25%, 08/15/26

      240,000         290,138   

Pennsylvania Higher Educational Facilities Authority, Hospital Improvements, Revenue Bonds, Callable 11/01/22 @ 100, (OID), 4.00%, 05/01/32

      100,000         105,302   

Pennsylvania Higher Educational Facilities Authority, Hospital Improvements, Revenue Bonds, Callable 11/01/22 @ 100, 5.00%, 05/01/37

      100,000         113,152   

Pennsylvania Higher Educational Facilities Authority, Hospital Improvements, Revenue Bonds, Callable 11/01/22 @ 100, 5.00%, 05/01/42

      100,000         111,736   

Pennsylvania State University, Revenue Bonds, Callable 09/01/26 @ 100, 5.00%, 09/01/35

      125,000         157,986   

Pennsylvania State University, Revenue Bonds, Callable 09/01/26 @ 100, 5.00%, 09/01/34

      190,000         240,935   

Pennsylvania State University, Revenue Bonds, Callable 09/01/26 @ 100, 5.00%, 09/01/36

      100,000         125,972   

Pennsylvania Turnpike Commission, Highway Improvements, Revenue Bonds, Callable 12/01/22 @ 100, 5.00%, 12/01/43

      2,000,000         2,324,920   

Pennsylvania Turnpike Commission, Revenue Bonds, (AGM), 5.25%, 07/15/28

      150,000         201,495   

Pennsylvania Turnpike Commission, Revenue Bonds, Callable 12/01/25 @ 100, 5.00%, 12/01/45

      500,000         589,010   

Pennsylvania Turnpike Commission, Highway Improvements, Revenue Bonds, Callable 12/01/19 @ 100, 5.50%, 12/01/41

      500,000         566,100   

Philadelphia Municipal Authority, Public Improvements, Revenue Bonds, Callable 04/01/19 @ 100, (OID), 6.50%, 04/01/39

      100,000         113,583   

Philadelphia Municipal Authority, Public Improvements, Revenue Bonds, Callable 04/01/19 @ 100, (OID), 6.38%, 04/01/29

      250,000         284,135   

 

42            SPIRIT OF AMERICA

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Pennsylvania (cont.)

                  

West View Municipal Authority Water Revenue, Water Utility Improvements, Revenue Bonds, Callable 11/15/24 @ 100, (OID), 4.00%, 11/15/43

    $ 500,000       $ 553,065   
        8,096,022   

Puerto Rico 1.54%

                  

Commonwealth of Puerto Rico, General Obligation Unlimited, Callable 09/02/16 @ 100, (OID), 6.13%, 07/01/33

      100,000         65,250   

Commonwealth of Puerto Rico, General Obligation Unlimited, Callable 07/01/21 @ 100, (AGM) (OID), 5.25%, 07/01/26

      100,000         104,630   

Commonwealth of Puerto Rico, Refunding Bonds, General Obligation Unlimited, Callable 01/01/20 @ 101, (AGM), 5.00%, 07/01/31

      200,000         202,400   

Commonwealth of Puerto Rico, General Obligation Unlimited, Callable 09/02/16 @ 100, 5.00%, 07/01/18

      250,000         162,500   

Commonwealth of Puerto Rico, General Obligation Unlimited (NATL-RE), 5.50%, 07/01/19

      500,000         525,220   

Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding Revenue Bonds, 5.00%, 07/01/22

      250,000         181,875   

Puerto Rico Public Buildings Authority, Refunding Revenue Bonds, (Commonwealth Guaranteed), 5.00%, 07/01/22

      185,000         109,844   

Puerto Rico Public Buildings Authority, Refunding Revenue Bonds, (Commonwealth Guaranteed), 6.00%, 07/01/20

      100,000         60,875   

Puerto Rico Public Buildings Authority, Refunding Revenue Bonds, Callable 09/02/16 @ 100, (Commonwealth Guaranteed), 7.00%, 07/01/25

      250,000         153,750   

Puerto Rico Public Buildings Authority, Refunding Revenue Bonds, Callable 07/01/19 @ 100, (Commonwealth Guaranteed) (OID), 6.75%, 07/01/36

      240,000         145,200   
        1,711,544   

Rhode Island 1.78%

                  

Rhode Island Housing & Mortgage Finance Corp., Refunding Revenue Bonds, Callable 04/01/21 @ 100, 4.10%, 10/01/37

      105,000         110,987   

Rhode Island Housing & Mortgage Finance Corp., State Single-Family Housing, Revenue Bonds, Callable 04/01/22 @ 100, (Freddie Mac) (Fannie Mae) (Ginnie Mae), 3.45%, 04/01/35

      235,000         241,841   

Rhode Island Housing & Mortgage Finance Corp., Refunding Revenue Bonds, Callable 04/01/21 @ 100, 3.45%, 04/01/26

      500,000         527,720   

Rhode Island Housing & Mortgage Finance Corp., Refunding Revenue Bonds, Callable 04/01/20 @ 100, 5.88%, 10/01/51

      250,000         277,265   

Rhode Island Housing & Mortgage Finance Corp., Refunding Revenue Bonds, Callable 04/01/20 @ 100, 5.38%, 10/01/35

      215,000         236,466   

Rhode Island Student Loan Authority, Refunding Revenue Bonds, Callable 12/01/19 @ 100, 6.35%, 12/01/30

      500,000         554,295   

Rhode Island Turnpike & Bridge Authority, Highway Improvements, Revenue Bonds, Callable 12/01/20 @ 100, (OID), 5.00%, 12/01/39

      35,000         39,736   
        1,988,310   

South Carolina 0.05%

                  

South Carolina Jobs-Economic Development Authority, Refunding Revenue Bonds, Callable 08/01/19 @ 100, (OID), 5.75%, 08/01/39

      50,000         54,912   

 

    43   

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

South Dakota 0.37%

                  

South Dakota Housing Development Authority, Revenue Bonds, Callable 11/01/25 @ 100, 3.13%, 11/01/36

    $ 150,000       $ 152,861   

South Dakota Housing Development Authority, Revenue Bonds, Callable 11/01/25 @ 100, 2.45%, 05/01/27

      250,000         254,178   
        407,039   

Tennessee 0.31%

                  

City of Memphis, TN, General Obligation Unlimited, Callable 04/01/24 @ 100, 5.00%, 04/01/44

      100,000         121,002   

Metropolitan Government of Nashville & Davidson County Convention Center Authority, Public Improvements, Revenue Bonds, Callable 07/01/20 @ 100, 5.00%, 07/01/26

      200,000         228,488   
        349,490   

Texas 3.50%

                  

City of Houston, TX, Refunding Revenue Bonds, Callable 09/01/21 @ 100, 5.25%, 09/01/29

      500,000         588,015   

Clifton Higher Education Finance Corp., School Improvements, Refunding Revenue Bonds, Callable 08/15/24 @ 100, (GTD), 4.00%, 08/15/44

      500,000         550,485   

Fort Bend Grand Parkway Toll Road Authority, Refunding Revenue Bonds, Callable 03/01/22 @ 100, 4.00%, 03/01/46

      250,000         267,788   

Harris County Cultural Education Facilities Finance Corp, Revenue Bonds, Callable 05/15/26 @ 100, 4.00%, 11/15/30

      1,130,000         1,271,996   

Harris County Cultural Education Facilities Finance Corp., Refunding Revenue Bonds, 5.00%, 10/01/19

      120,000         135,655   

Harris County Cultural Education Facilities Finance Corp., Refunding Revenue Bonds, Callable 10/01/19 @ 100, (OID), 4.75%, 10/01/25

      175,000         195,428   

North Texas Tollway Authority, Refunding Revenue Bonds, Callable 01/01/21 @ 100, (OID), 6.00%, 01/01/38

      100,000         118,545   

San Antonio Public Facilities Corp., Public Improvements, Refunding Revenue Bonds, Callable 09/15/22 @ 100, (OID), 4.00%, 09/15/42

      250,000         270,933   

Tarrant County Cultural Education Facilities Finance Corp., Hospital Improvements, Revenue Bonds, (OID), 4.50%, 09/01/19

      100,000         110,342   

Tarrant County Cultural Education Facilities Finance Corp., Hospital Improvements, Revenue Bonds, Callable 09/01/19 @ 100, (OID), 5.13%, 09/01/25

      100,000         112,770   

Tarrant County Health Facilities Development Corp., Hospital Improvements, Revenue Bonds, 5.00%, 12/01/16

      50,000         50,910   

Tarrant County Health Facilities Development Corp., Hospital Improvements, Revenue Bonds, Callable 12/01/19 @ 100, 5.00%, 12/01/23

      100,000         114,179   

Texas A&M University, Refunding Revenue Bonds, Callable 05/15/20 @ 100, 5.00%, 05/15/39

      100,000         113,797   
        3,900,843   

Utah 0.38%

                  

University of Utah/The, University & College Improvements, Revenue Bonds, Callable 08/01/23 @ 100, 5.00%, 08/01/43

      250,000         300,487   

Utah Housing Corp., State Single-Family Housing, Revenue Bonds, Callable 01/01/21 @ 100, 5.25%, 01/01/25

      40,000         43,288   

Utah Housing Corp., State Single-Family Housing, Revenue Bonds, Callable 01/01/21 @ 100, 5.75%, 01/01/33

      75,000         80,756   
        424,531   

 

44            SPIRIT OF AMERICA

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Vermont 0.23%

                  

Vermont Housing Finance Agency, State Multi-Family Housing, Revenue Bonds, Callable 08/15/22 @ 100, 3.75%, 08/15/37

    $ 245,000       $ 256,086   

Virgin Islands 0.10%

                  

Virgin Islands Public Finance Authority, Refunding Revenue Bonds, Callable 10/01/19 @ 100, 5.00%, 10/01/25

      100,000         109,237   

Virginia 0.47%

                  

Virginia Housing Development Authority, State Single-Family Housing, Revenue Bonds, Callable 04/01/20 @ 100, 4.50%, 10/01/45

      215,000         230,916   

Virginia Resources Authority, Revenue Bonds, Callable 11/01/25 @ 100, 4.00%, 11/01/33

      250,000         290,237   
        521,153   

Washington 1.81%

                  

Spokane Public Facilities District, Public Improvements, Revenue Bonds, Callable 06/01/23 @ 100, 5.00%, 05/01/43

      1,000,000         1,155,520   

Washington Health Care Facilities Authority, Revenue Bonds, Callable 11/01/19 @ 100, 5.00%, 11/01/28

      250,000         281,605   

Washington Health Care Facilities Authority, Hospital Improvements, Revenue Bonds, Callable 10/01/19 @ 100, (OID), 5.63%, 10/01/38

      500,000         576,565   
        2,013,690   

West Virginia 0.45%

                  

West Virginia Hospital Finance Authority, Hospital Improvements, Revenue Bonds, Callable 09/01/19 @ 100, (OID), 5.63%, 09/01/32

      200,000         227,098   

West Virginia Hospital Finance Authority, Hospital Improvements, Revenue Bonds, 5.00%, 09/01/19

      250,000         276,270   
        503,368   

Wisconsin 0.54%

                  

Wisconsin Health & Educational Facilities Authority, Hospital Improvements, Revenue Bonds, Callable 08/15/16 @ 100, 5.25%, 08/15/31

      100,000         100,507   

Wisconsin Health & Educational Facilities Authority, Hospital Improvements, Revenue Bonds, Callable 08/15/16 @ 100, 5.25%, 08/15/18

      400,000         402,028   

Wisconsin Housing & Economic Development Authority, State Multi-Family Housing, Revenue Bonds, Callable 05/01/20 @ 100, (OID), 5.63%, 11/01/35

      95,000         103,252   
        605,787   

Wyoming 0.48%

                  

Wyoming Community Development Authority, State Single-Family Housing, Revenue Bonds, Callable 06/01/24 @ 100, 3.70%, 06/01/39

      500,000         535,545   

 

    45   

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Total Municipal Bonds
(Cost $101,934,118)

       $ 110,747,869   

Total Investments — 99.40%

      

(Cost $101,934,118)

         110,747,869   

Other Assets in Excess of Liabilities — 0.60%

         672,561   
     

 

 

  

NET ASSETS — 100.00%

             $ 111,420,430   

AGM - Assured Guaranty Municipal Corp.

AMBAC - American Municipal Bond Assurance Corp.

BHAC-CR - Berkshire Hathaway Assurance Corp. Custodial Receipts

FGIC - Financial Guaranty Insurance Co.

FHA - Insured by Federal Housing Administration.

GO - General Obligation

GTD - Guaranteed

INS - Insured

NATL-RE - Insured by National Public Finance Guarantee Corp.

OID - Original Issue Discount

 

46            SPIRIT OF AMERICA

SPIRIT OF AMERICA INCOME FUND

 

SCHEDULE OF INVESTMENTS    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  
Collateralized Mortgage Obligations 0.15%      

CHL Mortgage Pass-Through Trust 2005-21, A27, 5.50%, 10/25/35

    $ 59,541       $ 53,280   

CHL Mortgage Pass-Through Trust 2005-21, A7, 5.50%, 10/25/35

      64,368         57,600   

Citicorp Mortgage Securities, Inc., 1A12, 5.00%, 02/25/35

      215,304         213,948   

Total Collateralized Mortgage Obligations
(Cost $230,866)

         324,828   
Municipal Bonds 75.38%      

Alabama 2.65%

                  

Health Care Authority for Baptist Health/The, Refunding Revenue Bonds, 5.50%, 11/15/43

      4,000,000         4,540,520   

University of Alabama/The, University & College Improvements, Build America Revenue Bonds, Callable 06/01/20 @ 100, (OID), 6.13%, 06/01/39

      715,000         830,444   

University of Alabama/The, University & College Improvements, Build America Revenue Bonds, Callable 06/01/20 @ 100, (OID), 6.13%, 06/01/42

      500,000         579,580   
        5,950,544   

Arizona 1.37%

                  

Arizona School Facilities Board, School Improvements, Certificate of Participation, 6.00%, 09/01/27

      225,000         262,177   

Northern Arizona University, University & College Improvements, Build America Revenue Bonds, Callable 08/01/20 @ 100, 5.92%, 08/01/22

      1,365,000         1,558,107   

University of Arizona, University & College Improvements, Build America Revenue Bonds, Callable 08/01/20 @ 100, 6.64%, 08/01/44

      1,085,000         1,249,703   
        3,069,987   

California 7.53%

                  

Alhambra Unified School District, University & College Improvements, General Obligation Unlimited, 6.70%, 02/01/26

      465,000         602,259   

Bay Area Toll Authority, Revenue Bonds, 6.91%, 10/01/50

      1,000,000         1,605,620   

Bay Area Toll Authority, Highway Improvements, Build America Revenue Bonds, 6.92%, 04/01/40

      250,000         364,760   

City & County of San Francisco CA, General Obligation Unlimited, 6.26%, 06/15/30

      450,000         614,272   

City of Tulare, CA Sewer Revenue, Sewer Improvements, Build America Revenue Bonds, Callable 11/15/19 @ 100, (AGM) (OID), 8.75%, 11/15/44

      1,000,000         1,176,560   

Colton Joint Unified School District, School Improvements, General Obligation Unlimited,
6.01%, 08/01/26

      1,000,000         1,237,630   

County of San Bernardino, CA, Refunding Revenue Bonds, (AGM), 6.02%, 08/01/23

      190,000         215,316   

Los Angeles Department of Water & Power, Electric Light & Power Improvements, Build America Revenue Bonds, Callable 07/01/21 @ 100, 7.00%, 07/01/41

      500,000         594,580   

Napa Valley Unified School District, School Improvements, General Obligation Unlimited,
6.51%, 08/01/43

      500,000         735,355   

Oakland Redevelopment Agency Successor Agency, Economic Improvements, Tax Allocation, (OID), 8.50%, 09/01/20

      500,000         577,490   

Peralta Community College District, Refunding Revenue Bonds, 7.31%, 08/01/31

      1,310,000         1,674,272   

Peralta Community College District, Refunding Revenue Bonds, 6.91%, 08/01/25

      500,000         622,430   

San Bernardino City Unified School District, School Improvements, Certificate of Participation, (AGM) (OID), 8.05%, 02/01/23

      1,000,000         1,271,850   

San Bernardino City Unified School District, School Improvements, Certificate of Participation, (AGM) (OID), 8.25%, 02/01/26

      500,000         672,775   

State of California, Recreational Facility, Water Facility & Correctional Facility Improvements, Build America Bonds, General Obligation Unlimited, (AGM-CR) (OID), 6.88%, 11/01/26

      1,000,000         1,390,200   

University of California, Revenue Bonds, 4.13%, 05/15/45

      1,000,000         1,115,330   

 

    47   

SPIRIT OF AMERICA INCOME FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

California (cont.)

                  

University of California, University & College Improvements, Refunding Revenue Bonds,
3.66%, 05/15/27

    $ 250,000       $ 272,920   

University of California, Revenue Bonds, Callable 05/15/30 @ 100, 6.30%, 05/15/50

      510,000         630,844   

West Contra Costa Unified School District, School Improvements, General Obligation Unlimited, 6.25%, 08/01/30

      1,250,000         1,533,512   
        16,907,975   

Colorado 0.98%

                  

Adams State University, University & College Improvements, Build America Revenue Bonds, Callable 05/15/19 @ 100, (State Higher Education Intercept Program) (OID), 6.47%, 05/15/38

      250,000         275,168   

City of Brighton, CO, Public Improvements, Build America Bonds, Certificate of Participation, Callable 12/01/20 @ 100, (AGM) (OID), 6.75%, 12/01/35

      250,000         277,725   

Colorado Mesa University, University & College Improvements, Build America Revenue Bonds, (State Higher Education Intercept Program), 6.75%, 05/15/42

      1,000,000         1,366,420   

County of Gunnison, CO, Public Improvements, Build America Bonds, Certificate of Participation, Callable 07/15/20 @ 100, 5.95%, 07/15/30

      250,000         275,818   
        2,195,131   

Connecticut 1.23%

                  

City of Bridgeport, CT, School Improvements, Build America Bonds, General Obligation Unlimited, Callable 08/15/20 @ 100, (AGM), 6.57%, 08/15/28

      1,000,000         1,174,640   

City of Waterbury, CT, Public Improvements, General Obligation Unlimited, Callable 09/01/20 @ 100, (AGM), 6.10%, 09/01/30

      500,000         567,775   

State of Connecticut, General Obligation Unlimited, 5.85%, 03/15/32

      780,000         1,026,207   
        2,768,622   

District of Columbia 0.25%

                  

Washington Metropolitan Area Transit Authority, Transit Improvements, Build America Revenue Bonds, Callable 07/01/19 @ 100, (OID), 7.00%, 07/01/34

      500,000         571,555   

Florida 5.87%

                  

City of Lake City, FL Utility System Revenue, Water Utility Improvements, Build America Revenue Bonds, Callable 07/01/20 @ 100, (AGM), 6.28%, 07/01/40

      200,000         224,450   

City of Lake City, FL Utility System Revenue, Water Utility Improvements, Build America Revenue Bonds, Callable 07/01/20 @ 100, (AGM), 6.03%, 07/01/30

      100,000         111,444   

City of Miami Gardens, FL, Public Improvements, Build America Bonds, Certificate of Participation, 7.17%, 06/01/26

      1,250,000         1,568,987   

City of Oakland Park, FL Water & Sewer Revenue, Sewer Improvements, Build America Revenue Bonds, Callable 09/01/20 @ 100, (AGM), 6.14%, 09/01/35

      300,000         325,815   

City of Orlando, FL, Recreational Facilities Improvements, Build America Revenue Bonds, Callable 10/01/19 @ 100, 6.85%, 10/01/29

      250,000         287,675   

City of Orlando, FL, Recreational Facilities Improvements, Build America Revenue Bonds, Callable 10/01/19 @ 100, 7.10%, 10/01/39

      415,000         478,234   

City of Tallahassee FL Utility System Revenue, Revenue Bonds, 5.22%, 10/01/40

      300,000         380,529   

County of Miami-Dade, FL, Public Improvements, Build America Revenue Bonds, Callable 04/01/20 @ 100, 6.54%, 04/01/30

      500,000         578,155   

County of Miami-Dade, FL, Port, Airport & Marina Improvements, Build America Revenue Bonds, (AGM) (OID), 7.50%, 04/01/40

      1,000,000         1,388,690   

 

48            SPIRIT OF AMERICA

SPIRIT OF AMERICA INCOME FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Florida (cont.)

                  

County of Miami-Dade, FL, Recreational Facility Improvements, Revenue Bonds, (AGM),
7.08%, 10/01/29

    $ 250,000       $ 303,900   

County of Miami-Dade, FL, Public Improvements, Build America Revenue Bonds, Callable
04/01/19 @ 100, 6.97%, 04/01/39

      750,000         825,532   

County of Miami-Dade, FL Transit System, Transit Improvements, Build America Revenue Bonds, 5.53%, 07/01/32

      500,000         594,305   

County of Miami-Dade, FL Transit System, Transit Improvements, Build America Revenue Bonds, Callable 07/01/19 @ 100, 6.91%, 07/01/39

      1,000,000         1,139,600   

Florida Atlantic University Finance Corp., University & College Improvements, Build America Revenue Bonds, Callable 07/01/20 @ 100, 7.64%, 07/01/40

      165,000         196,495   

Florida Department of Environmental Protection, Public Improvements, Build America Revenue Bonds, Callable 07/01/19 @ 100, 7.05%, 07/01/29

      1,500,000         1,740,705   

Florida Governmental Utility Authority, Build America Revenue Bonds, Callable 10/01/20 @ 100, 6.55%, 10/01/40

      1,000,000         1,126,100   

Florida State Board of Governors, University & College Improvements, Build America Revenue Bonds, Callable 11/01/20 @ 100, 7.50%, 11/01/35

      250,000         297,703   

Osceola County School Board, School Improvements, Certificate of Participation, 6.66%, 04/01/27

      1,000,000         1,117,850   

Town of Davie, FL Water & Sewer Revenue, Water Utility Improvements, Build America Revenue Bonds, Callable 10/01/20 @ 100, (AGM), 6.85%, 10/01/40

      250,000         297,340   

Town of Miami Lakes, FL, Public Improvements, Build America Revenue Bonds, 7.59%, 12/01/30

      150,000         205,746   
        13,189,255   

Georgia 2.61%

                  

Cobb Marietta Georgia Coliseum, Revenue Bonds, Callable 01/01/26 @ 100, (GTD), 4.50%, 01/01/47

      600,000         649,386   

Municipal Electric Authority of Georgia, Electric Lights & Power Improvements, Build America Bonds, Refunding Revenue Bonds, 7.06%, 04/01/57

      2,500,000         3,074,325   

State of Georgia, Public Improvements, General Obligation Unlimited, Callable 02/01/24 @ 100, 3.84%, 02/01/32

      2,000,000         2,139,560   
        5,863,271   

Hawaii 0.73%

                  

State of Hawaii, General Obligation Unlimited, Callable 10/01/25 @ 100, 4.05%, 10/01/32

      1,495,000         1,635,919   

Idaho 0.41%

                  

Idaho Water Resource Board, Water Utility Improvements, Revenue Bonds, Callable 09/01/22 @ 100, (OID), 5.25%, 09/01/24

      900,000         915,111   

Illinois 3.10%

                  

City of Chicago Heights, IL, Refunding Bonds, General Obligation Unlimited, Callable 01/15/21 @ 100, (AGM) (OID), 6.00%, 01/15/28

      150,000         164,973   

City of Chicago Heights, IL, Refunding Bonds, General Obligation Unlimited, Callable 01/15/21 @ 100, (AGM) (OID), 5.50%, 01/15/24

      500,000         540,815   

City of Chicago, IL Waterworks Revenue, Water Utility Improvements, Build America Revenue Bonds, 6.74%, 11/01/40

      250,000         329,845   

Henry Hospital District, Hospital Improvements, Build America Bonds, General Obligation Unlimited, Callable 12/01/19 @ 100, (AGM), 6.65%, 12/01/29

      840,000         908,729   

Lake County Community Unit School District No. 187 North Chicago, School Improvements, General Obligation Unlimited, Callable 01/01/20 @ 100, (AGM) (OID), 7.13%, 01/01/35

      1,000,000         1,109,700   

 

    49   

SPIRIT OF AMERICA INCOME FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Illinois (cont.)

                  

Northern Illinois University, University & College Improvements, Build America Revenue Bonds, Callable 04/01/20 @ 100, (AGM), 8.15%, 04/01/41

    $ 570,000       $ 657,409   

Northern Illinois University, University & College Improvements, Build America Revenue Bonds, Callable 04/01/20 @ 100, (AGM), 7.75%, 04/01/30

      250,000         289,713   

Village of Glenwood, IL, Public Improvements, Build America Bonds, General Obligation Unlimited, (AGM), 7.03%, 12/01/28

      1,500,000         1,881,015   

Village of Rosemont, IL, Public Improvements, General Obligation Unlimited, (AGM) (OID), 6.13%, 12/01/30

      500,000         583,840   

Will County Forest Preservation District, Public Improvements, Build America Bonds, General Obligation Limited, 5.71%, 12/15/30

      400,000         507,968   
        6,974,007   

Indiana 1.39%

                  

Anderson School Building Corp., Refunding Bonds, General Obligation Limited, Callable
07/05/23 @ 100, 3.95%, 07/05/29

      1,000,000         1,066,720   

Anderson School Building Corp., Refunding Bonds, General Obligation Limited, Callable
07/05/23 @ 100, (OID), 3.75%, 07/05/28

      1,000,000         1,065,230   

Evansville Redevelopment Authority, Recreational Facility Improvements, Build America Refunding Revenue Bonds, Callable 08/01/20 @ 100, 7.21%, 02/01/39

      800,000         996,896   
        3,128,846   

Kansas 0.69%

                  

Kansas Development Finance Authority, Public Improvements, Build America Revenue Bonds, Callable 11/01/19 @ 100, 6.26%, 11/01/28

      390,000         438,805   

Kansas Development Finance Authority, Revenue Bonds, 4.73%, 04/15/37

      1,000,000         1,116,520   
        1,555,325   

Kentucky 1.30%

                  

Kentucky Municipal Power Agency, Electric Lights & Power Improvements, Build America Revenue Bonds, Callable 09/01/20 @ 100, (AGM), 6.49%, 09/01/37

      250,000         279,260   

Kentucky State Property & Building Commission, Economic Improvements, University & College Improvements, Build America Revenue Bonds, 5.37%, 11/01/25

      400,000         465,244   

Paducah Independent School District Finance Corp., School Improvements, Revenue Bonds, Callable 12/01/21 @ 100, (SEEK), 5.00%, 12/01/30

      1,000,000         1,090,810   

Perry County School District Finance Corp., School Improvements, Revenue Bonds, Callable 12/01/21 @ 100, (SEEK), 5.00%, 12/01/30

      1,000,000         1,086,040   
        2,921,354   

Louisiana 1.46%

                  

City of New Orleans, LA, Swap Termination Refunding Bonds, General Obligation Limited, Callable 09/01/22 @ 100, 4.59%, 09/01/27

      500,000         534,855   

East Baton Rouge Sewerage Commission, Refunding Revenue Bonds, Callable 02/01/25 @ 100, 3.95%, 02/01/30

      1,000,000         1,074,430   

Tangipahoa Parish Hospital Service District No. 1, Hospital Improvements, Build America Revenue Bonds, Callable 02/01/20 @ 100, 7.20%, 02/01/42

      1,540,000         1,662,938   
        3,272,223   

 

50            SPIRIT OF AMERICA

SPIRIT OF AMERICA INCOME FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Massachusetts 0.62%

                  

City of Worcester, MA, Pension Funding, General Obligation Limited, (AGM) (OID),
6.25%, 01/01/28

    $ 220,000       $ 260,988   

Massachusetts Health & Educational Facilities Authority, Refunding Revenue Bonds,
6.43%, 10/01/35

      750,000         947,040   

University of Massachusetts Building Authority, University & College Improvements, Build America Revenue Bonds, Callable 05/01/19 @ 100, 6.57%, 05/01/39

      165,000         185,158   
        1,393,186   

Michigan 2.64%

                  

Avondale School District, School Improvements, Build America Bonds, General Obligation Unlimited, Callable 05/01/20 @ 100, (AGM), 5.75%, 05/01/32

      500,000         546,130   

Comstock Park Public Schools, School Improvements, General Obligation Unlimited, Callable 05/01/21 @ 100, 6.20%, 05/01/24

      200,000         238,810   

County of Macomb, MI, Retirement Facilities, General Obligation Limited, Callable 11/01/25 @ 100, 4.13%, 11/01/30

      250,000         270,615   

Eastern Michigan University, University & College Improvements, Build America Revenue Bonds, Callable 02/15/19 @ 100, 7.21%, 02/15/38

      250,000         269,143   

Michigan Finance Authority, Revenue Bonds, Callable 09/01/25 @ 100, 3.90%, 09/01/30

      250,000         262,488   

Michigan Finance Authority, School Improvements, Revenue Bonds, Callable 05/01/21 @ 100, 6.20%, 05/01/22

      490,000         543,944   

Michigan Finance Authority, School Improvements, Revenue Bonds, Callable 11/01/20 @ 100, 6.38%, 11/01/25

      500,000         569,710   

Michigan Tobacco Settlement Finance Authority, Miscellaneous Purposes Revenue Bonds, (OID), 7.31%, 06/01/34

      2,595,000         2,519,044   

Milan Area Schools, School Improvements, General Obligation Unlimited, Callable 05/01/19 @ 100, (OID), 7.10%, 05/01/34

      485,000         542,351   

Onsted Community Schools, School Improvements, General Obligation Unlimited, Callable 05/01/20 @ 100, 5.90%, 05/01/27

      150,000         162,033   

St Johns Public Schools, General Obligation Unlimited, Callable 05/01/20 @ 100, 6.65%, 05/01/40

      5,000         5,461   
        5,929,729   

Mississippi 0.84%

                  

Mississippi Development Bank, Highway Improvements, Build America Revenue Bonds,
6.59%, 01/01/35

      650,000         845,572   

State of Mississippi, Refunding Bonds, General Obligation Unlimited, 3.43%, 10/01/29

      1,000,000         1,052,030   
        1,897,602   

Missouri 2.69%

                  

City of Kansas City, MO, Revenue Bonds, 7.83%, 04/01/40

      2,500,000         3,410,175   

City of Sedalia, MO, Sewer Improvements, Build America Bonds, Certificate of Participation, Callable 06/01/20 @ 100, (AGM), 6.50%, 06/01/24

      250,000         266,105   

City of St Charles, MO, Water Utility Improvements Build America Bonds, Certificate of Participation, Callable 08/01/20 @ 100, 5.65%, 02/01/30

      275,000         297,457   

Missouri Joint Municipal Electric Utility Commission, Electric Lights & Power Improvements, Build America Revenue Bonds, 7.90%, 01/01/42

      1,000,000         1,420,190   

Missouri Joint Municipal Electric Utility Commission, Electric Lights & Power Improvements, Build America Revenue Bonds, 7.73%, 01/01/39

      475,000         646,541   
        6,040,468   

 

    51   

SPIRIT OF AMERICA INCOME FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Nebraska 0.65%

                  

Nebraska Public Power District, Electric Lights & Power Improvements, Build America Revenue Bonds, 5.32%, 01/01/30

    $ 200,000       $ 234,106   

Omaha Public Power District, Revenue Bonds, 5.43%, 02/01/41

      1,000,000         1,222,280   
        1,456,386   

Nevada 2.83%

                  

City of Las Vegas, NV, Public Improvements, Build America Bonds, Certificate of Participation, Callable 09/01/19 @ 100, (OID), 7.75%, 09/01/29

      1,100,000         1,312,025   

County of Clark, NV, Transit Improvements, Build America Bonds, General Obligation Limited, Callable 07/01/20 @ 100, (OID), 7.00%, 07/01/38

      1,000,000         1,203,640   

County of Washoe, NV, Public Improvements, Build America Revenue Bonds, 7.88%, 02/01/40

      250,000         352,340   

County of Washoe, NV, Public Improvements, Build America Revenue Bonds, 7.97%, 02/01/40

      1,590,000         2,192,419   

Las Vegas Valley Water District, Water Utility Improvements, Build America Bonds, General Obligation Limited, Callable 06/01/19 @ 100, 7.10%, 06/01/39

      925,000         1,064,166   

Pershing County School District, School Improvements, Build America Bonds, General Obligation Limited, Callable 04/01/20 @ 100, (GTD), 6.25%, 04/01/30

      220,000         235,466   
        6,360,056   

New Jersey 2.65%

                  

Essex County Improvement Authority, Refunding Revenue Bonds, Callable 09/02/16 @ 100, (AMBAC) (GTD) (OID), 5.00%, 10/01/24

      500,000         501,080   

New Jersey Economic Development Authority, School Improvements, Build America Revenue Bonds, Callable 06/15/20 @ 100, 6.43%, 12/15/35

      500,000         548,570   

New Jersey Educational Facilities Authority, University & College Improvements, Build America Revenue Bonds, Callable 07/01/20 @ 100, 6.19%, 07/01/40

      500,000         544,590   

New Jersey Educational Facilities Authority, University & College Improvements, Build America Revenue Bonds, Callable 07/01/19 @ 100, 7.40%, 07/01/40

      1,000,000         1,127,720   

New Jersey Housing & Mortgage Finance Agency, State Multi Family Housing, Refunding Revenue Bonds, Callable 11/01/24 @ 100, 4.27%, 11/01/30

      390,000         395,066   

New Jersey Turnpike Authority, Highway Improvements, Build America Revenue Bonds,
7.10%, 01/01/41

      250,000         378,357   

South Jersey Transportation Authority LLC, Highway Improvements, Build America Revenue Bonds, (OID), 7.00%, 11/01/38

      500,000         582,905   

Township of Brick, NJ, General Obligation Unlimited, Callable 09/01/23 @ 100, 3.75%, 09/01/28

      1,780,000         1,878,220   
        5,956,508   

New York 10.21%

                  

City of New York, NY, Public Improvements, Build America Bonds, General Obligation Unlimited, Callable 12/01/19 @ 100, 6.39%, 12/01/29

      500,000         578,875   

City of New York, NY, Public Improvements, Build America Bonds, General Obligation Unlimited, 5.21%, 10/01/31

      100,000         122,519   

City of New York, NY, Public Improvements, Build America Bonds, General Obligation Unlimited, Callable 10/01/20 @ 100, 5.82%, 10/01/31

      250,000         291,263   

City of New York, NY, Public Improvements, Build America Bonds, General Obligation Unlimited, Callable 03/01/20 @ 100, 6.27%, 03/01/31

      500,000         577,470   

City of New York, NY, Public Improvements, Build America Bonds, General Obligation Unlimited, 5.70%, 03/01/27

      145,000         185,749   

County of Nassau, NY, Public Improvements, Build America Bonds, General Obligation Unlimited, Callable 10/01/20 @ 100, 7.40%, 10/01/35

      500,000         576,370   

 

52            SPIRIT OF AMERICA

SPIRIT OF AMERICA INCOME FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

New York (cont.)

                  

County of Nassau, NY, Public Improvements, Build America Bonds, General Obligation Unlimited, 5.38%, 10/01/24

    $ 500,000       $ 609,420   

Long Island Power Authority, Revenue Bonds, (OID), 5.85%, 05/01/41

      195,000         245,798   

Metropolitan Transportation Authority, Transit Improvements, Build America Revenue Bonds, 6.67%, 11/15/39

      1,000,000         1,464,700   

Metropolitan Transportation Authority, Revenue Bonds, 5.87%, 11/15/39

      400,000         546,904   

Metropolitan Transportation Authority, Transit Improvements, Build America Revenue Bonds, 5.99%, 11/15/30

      125,000         165,021   

Metropolitan Transportation Authority, Transit Improvements, Build America Revenue Bonds, 6.59%, 11/15/30

      395,000         538,851   

Metropolitan Transportation Authority, Transit Improvements, Build America Revenue Bonds, Callable 11/15/20 @ 100, 7.13%, 11/15/30

      500,000         610,195   

Metropolitan Transportation Authority, Transit Improvements, Build America Revenue Bonds, 6.20%, 11/15/26

      875,000         1,118,644   

Metropolitan Transportation Authority, Transit Improvements, Build America Revenue Bonds, 6.69%, 11/15/40

      1,500,000         2,166,405   

New York City Housing Development Corp., Multi-Family Housing Revenue Bonds, Callable 05/01/19 @ 100, 6.42%, 11/01/39

      2,500,000         2,697,500   

New York City Industrial Development Agency, Recreational Facilities Improvements Revenue Bonds, 5.90%, 03/01/46

      680,000         772,997   

New York City Transitional Finance Authority Building Aid Revenue, School Improvements, Build America Revenue Bonds, Callable 07/15/20 @ 100, (State Aid Withholding), 7.13%, 07/15/30

      500,000         599,580   

New York City Transitional Finance Authority Building Aid Revenue, School Improvements, Build America Revenue Bonds, (State Aid Withholding), 6.83%, 07/15/40

      500,000         721,640   

New York City Transitional Finance Authority Future Tax Secured Revenue, Public Improvements, Build America Revenue Bonds, 5.47%, 05/01/36

      815,000         1,081,065   

New York City Transitional Finance Authority Future Tax Secured Revenue, Public Improvements, Build America Revenue Bonds, Callable 08/01/20 @ 100, 5.81%, 08/01/30

      500,000         571,085   

New York City Transitional Finance Authority Future Tax Secured Revenue, Public Improvements, Build America Revenue Bonds, Callable 05/01/20 @ 100, 5.72%, 05/01/30

      1,000,000         1,096,180   

New York City Water & Sewer System, Build America Refunding Revenue Bonds, Callable
06/15/20 @ 100, 6.49%, 06/15/42

      200,000         230,064   

New York Municipal Bond Bank Agency, Build America Refunding Revenue Bonds, Callable 12/15/19 @ 100, 6.88%, 12/15/34

      500,000         537,880   

New York State Dormitory Authority, Revenue Bonds, Callable 07/01/26 @ 100, 3.88%, 07/01/46

      1,000,000         1,039,490   

Port Authority of New York & New Jersey, Revenue Bonds, Callable 06/01/25 @ 100,
4.82%, 06/01/45

      1,000,000         1,104,770   

Port Authority of New York & New Jersey, Port, Airport & Marina Improvements, Revenue Bonds, Callable 10/15/24 @ 100, 3.92%, 10/15/28

      2,115,000         2,292,216   

Triborough Bridge & Tunnel Authority, Revenue Bonds, 5.55%, 11/15/40

      150,000         200,319   

Western Nassau County Water Authority, Build America Revenue Bonds, 6.70%, 04/01/40

      150,000         201,372   
        22,944,342   

North Carolina 0.12%

                  

County of Cabarrus, NC, School Improvements, Revenue Bonds, Callable 04/01/21 @ 100,
5.50%, 04/01/26

      235,000         265,061   

 

    53   

SPIRIT OF AMERICA INCOME FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Ohio 3.83%

                  

American Municipal Power, Inc., Revenue Bonds, 6.27%, 02/15/50

    $ 1,350,000       $ 1,769,620   

American Municipal Power, Inc., Electric Lights & Power Improvements, Build America Revenue Bonds, 7.83%, 02/15/41

      430,000         666,109   

American Municipal Power, Inc., Build America Refunding Revenue Bonds, Callable 02/15/20 @ 100, 5.96%, 02/15/24

      500,000         560,310   

American Municipal Power, Inc., Electric Lights & Power Improvements, Build America Revenue Bonds, 7.50%, 02/15/50

      1,350,000         1,985,188   

Cincinnati City School District, Refunding Bonds, Certificate Participation, Callable 12/15/24 @ 100, (OID), 4.00%, 12/15/32

      200,000         204,970   

County of Cuyahoga, OH, Hospital Improvements, Build America Revenue Bonds, 8.22%, 02/15/40

      1,000,000         1,317,970   

Franklin County Convention Facilities Authority, Economic Improvements, Build America Revenue Bonds, 6.64%, 12/01/42

      500,000         671,850   

Madison Local School District/Lake County, School Improvements, Build America Bonds, General Obligation Unlimited, Callable 10/01/20 @ 100, (School District Credit Program),
5.70%, 04/01/35

      250,000         268,640   

Mariemont City School District, Build America Bonds, General Obligation Unlimited, Callable 12/01/20 @ 100, 5.90%, 12/01/30

      115,000         132,864   

Olentangy Local School District, Refunding Bonds, General Obligation Unlimited, Callable
06/01/25 @ 100, 3.50%, 12/01/29

      500,000         519,430   

Springfield Local School District/Summit County, School Improvements, Build America Bonds, General Obligation Unlimited, Callable 09/01/19 @ 100, (School District Credit Program), 5.65%, 09/01/31

      200,000         210,006   

State of Ohio, Public Improvements, Build America Revenue Bonds, Callable 10/01/19 @
100, 6.52%, 10/01/28

      250,000         293,970   
        8,600,927   

Oklahoma 0.25%

                  

Bryan County Independent School District No. 72 Durant, School Improvements, Build America Bonds, Certificate of Participation, Callable 12/01/19 @ 102, (OID), 6.80%, 12/01/33

      500,000         557,145   

Oregon 0.12%

                  

State of Oregon Department of Administrative Services, Hospital Improvements, Build America Bonds, Certificate of Participation, Callable 05/01/20 @ 100, 6.18%, 05/01/35

      250,000         283,793   

Pennsylvania 1.49%

                  

Pennsylvania Turnpike Commission, Revenue Bonds, 6.38%, 12/01/37

      230,000         296,948   

Philadelphia Authority for Industrial Development, Pension Funding, Revenue Bonds, (AGM) (OID), 6.35%, 04/15/28

      630,000         754,885   

Philadelphia Municipal Authority, Public Improvements, Revenue Bonds, 5.09%, 03/15/28

      500,000         530,610   

Pittsburgh Water & Sewer Authority, Refunding Revenue Bonds, (AGM), 6.61%, 09/01/24

      300,000         366,153   

Sports & Exhibition Authority of Pittsburgh and Allegheny County, Recreational Facilities Improvements, Revenue Bonds, 7.04%, 11/01/39

      1,000,000         1,240,850   

Township of Bristol, PA, Pension Funding, General Obligation Unlimited, Callable 09/15/18 @ 100, (AGM), 7.15%, 09/15/38

      150,000         170,750   
        3,360,196   

Rhode Island 0.05%

                  

Rhode Island Housing & Mortgage Finance Corp, Refunding Revenue Bonds, Callable
10/01/22 @ 100, 4.46%, 10/01/31

      100,000         104,256   

 

54            SPIRIT OF AMERICA

SPIRIT OF AMERICA INCOME FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

South Carolina 0.12%

                  

Moncks Corner Regional Recreation Corp., Recreational Facility Improvements, Build America Revenue Bonds, Callable 12/01/20 @ 100, 6.55%, 12/01/39

    $ 250,000       $ 268,660   

South Dakota 0.20%

                  

South Dakota State Building Authority, University & College Improvements, Build America Revenue Bonds, Callable 06/01/21 @ 100, 6.15%, 06/01/31

      400,000         450,912   

Tennessee 2.46%

                  

Coffee County Public Building Authority, Public Improvements, Build America Revenue Bonds, Callable 06/01/19 @ 100, (GTD), 7.20%, 06/01/44

      1,500,000         1,644,555   

Metropolitan Government of Nashville & Davidson County Convention Center Authority, Public Improvements, Build America Revenue Bonds, 7.43%, 07/01/43

      2,000,000         2,804,500   

Metropolitan Government of Nashville & Davidson County, TN, Refunding Bonds, General Obligation Unlimited, 3.29%, 07/01/27

      500,000         534,395   

Metropolitan Government of Nashville & Davidson County, TN, Refunding Bonds, General Obligation Unlimited, 3.39%, 07/01/28

      500,000         536,075   
        5,519,525   

Texas 6.12%

                  

Austin Community College District, University & College Improvements, Revenue Bonds, Callable 02/01/19 @ 100, 5.00%, 02/01/26

      985,000         1,078,555   

City of Lancaster, TX, Public Improvements, Build America Bonds, General Obligation Limited, Callable 02/15/20 @ 100, 6.53%, 02/15/40

      750,000         854,175   

City of Laredo, TX Sports Venue Sales Tax Revenue, Recreational Facility Improvements, Revenue Bonds, Callable 03/15/18 @ 100, (AGM) (OID), 5.45%, 03/15/31

      500,000         520,330   

City of San Antonio, TX, Public Improvements, Build America Bonds, General Obligation Limited, Callable 08/01/20 @ 100, 6.04%, 08/01/40

      250,000         286,100   

County of Bexar, TX, Public Improvements, Build America Bonds, General Obligation Limited, Callable 06/15/19 @ 100, 6.63%, 06/15/39

      500,000         572,420   

Dallas Convention Center Hotel Development Corp., Public Improvements, Build America Revenue Bonds, 7.09%, 01/01/42

      1,500,000         2,139,765   

Dallas County Hospital District, General Obligation Ltd, 5.62%, 08/15/44

      520,000         696,478   

Ector County Hospital District, Hospital Improvements, Build America Revenue Bonds, Callable 09/15/20 @ 100, 7.18%, 09/15/35

      250,000         275,978   

El Paso Downtown Development Corp., Recreational Facility Improvements, Revenue Bonds,
7.25%, 08/15/43

      1,000,000         1,206,020   

Frisco Economic Development Corp., Public Improvements, Revenue Bonds, Callable
02/15/24 @ 100, 4.20%, 02/15/34

      1,000,000         1,036,540   

Midland County Hospital District, Health, Hospital, & Nursing Home Improvements, Build America Bonds, General Obligation Limited, 6.44%, 05/15/39

      260,000         342,862   

North Texas Tollway Authority, Highway Improvements, Build America Revenue Bonds, Callable 02/01/20 @ 100, 8.91%, 02/01/30

      2,000,000         2,412,960   

Orchard Cultural Education Facilities Finance Corp., Recreational Facility Improvements, Revenue Bonds, Callable 11/15/20 @ 100, 6.48%, 11/15/34

      860,000         987,727   

San Antonio Industrial Development Corp., Refunding Revenue Bonds, Callable 08/15/23 @ 100, 4.75%, 08/15/33

      750,000         803,130   

Texas A&M University, Revenue Bonds, Callable 05/15/26 @ 100, 4.11%, 05/15/45

      500,000         530,840   
        13,743,880   

 

    55   

SPIRIT OF AMERICA INCOME FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Utah 0.25%

                  

Central Weber Sewer Improvement District, Sewer Improvements, Build America Revenue Bonds, Callable 03/01/19 @ 100, (OID), 6.38%, 03/01/34

    $ 500,000       $ 553,380   

Virgin Islands 0.93%

                  

Virgin Islands Water & Power Authority - Electric System, Electric Lights & Power Improvements, Build America Revenue Bonds, (AGM), 6.85%, 07/01/35

      1,000,000         1,137,300   

Virgin Islands Water & Power Authority - Electric System, Electric Lights & Power Improvements, Build America Revenue Bonds, (AGM), 6.65%, 07/01/28

      840,000         956,416   
        2,093,716   

Virginia 2.29%

                  

Tobacco Settlement Financing Corp., Refunding Revenue Bonds, Callable 08/18/16 @ 100, (OID), 6.71%, 06/01/46

      6,085,000         5,140,547   

Washington 1.06%

                  

City of Seattle, WA Municipal Light & Power Revenue, Electric Lights & Power Improvements, Build America Revenue Bonds, (OID), 5.57%, 02/01/40

      250,000         315,717   

Douglas County Public Utility District No. 1, Electric Lights & Power Improvements, Revenue Bonds, 5.35%, 09/01/30

      250,000         300,385   

Klickitat County Public Utility District No. 1, Electric Lights & Power Improvements, Refunding Revenue Bonds, Callable 12/01/21 @ 100, 5.25%, 12/01/29

      705,000         788,401   

Public Utility District No. 1 of Cowlitz County, WA, Electric Lights & Power Improvements, Build America Revenue Bonds, 6.88%, 09/01/32

      500,000         663,770   

Snohomish County Public Utility District No. 1, Electric Lights & Power Improvements, Build America Revenue Bonds, (OID), 5.68%, 12/01/40

      250,000         310,180   
        2,378,453   

West Virginia 0.92%

                  

Tobacco Settlement Finance Authority, Miscellaneous Purposes Revenue Bonds, 7.47%, 06/01/47

      2,170,000         2,068,856   

Wisconsin 0.47%

                  

Glendale Community Development Authority, Economic Improvements Tax Allocation Bonds, Callable 10/01/17 @ 100, 6.97%, 10/01/29

      1,000,000         1,058,210   

Total Municipal Bonds
(Cost $150,217,116)

         169,344,919   
     Shares         
Common Stocks 5.38%      

Energy 3.99%

                  

Buckeye Partners LP

      10,590         744,795   

Cone Midstream Partners LP

      8,500         147,390   

Enbridge Energy Partners LP

      34,519         800,841   

Energy Transfer Partners LP

      33,631         1,280,332   

EnLink Midstream Partners LP

      33,865         563,175   

Enterprise Products Partners LP

      34,400         1,006,544   

Global Partners LP

      7,215         98,918   

 

56            SPIRIT OF AMERICA

SPIRIT OF AMERICA INCOME FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

    

Shares

      Market Value  

Energy (cont.)

                  

Magellan Midstream Partners LP

      4,700       $ 357,200   

MPLX LP

      26,000         874,380   

Plains All American Pipeline LP

      3,200         87,968   

Spectra Energy Partners LP

      14,000         660,520   

Targa Resources Corp.

      12,739         536,821   

TC PipeLines LP

      10,695         612,396   

Tesoro Logistics LP

      6,405         317,240   

USA Compression Partners LP

      12,796         187,589   

Western Gas Partners LP

      13,750         693,000   
        8,969,109   

Financials 0.08%

                  

Blackstone Group LP/The

      7,100         174,234   

Real Estate Investment Trusts 1.19%

                  

Apple Hospitality REIT, Inc.

      22,539         423,959   

Blackstone Mortgage Trust, Inc.

      11,565         320,004   

City Office REIT, Inc.

      20,000         259,600   

Hannon Armstrong Sustainable Infrastructure Capital, Inc.

      77,792         1,680,307   
        2,683,870   

Telecommunication Services 0.12%

                  

AT&T, Inc.

      6,000         259,260   

Total Common Stocks

      

    (Cost $9,991,157)

         12,086,473   
     Principal
Amount		         

Corporate Bonds 7.75%

                  

Choice Hotels International, Inc., 5.70%, 08/28/20

    $ 200,000         215,000   

DDR Corp., 7.50%, 07/15/18

      500,000         551,968   

Digital Realty Trust LP, 5.88%, 02/01/20

      1,000,000         1,122,462   

Dow Chemical Co./The, 3.05%, 02/15/22

      1,000,000         1,000,408   

Duke Realty LP, 4.38%, 06/15/22

      250,000         271,989   

Entergy Texas, Inc., 5.15%, 06/01/45

      100,000         107,251   

Exelon Generation Co. LLC, 5.60%, 06/15/42 (a)

      400,000         421,008   

Fifth Third Bancorp, 8.25%, 03/01/38

      250,000         375,970   

General Electric Co., 5.00%, 12/29/49 (b)

      1,765,000         1,874,871   

Goldman Sachs Group, Inc./The, 6.45%, 05/01/36

      500,000         592,302   

Goldman Sachs Group, Inc./The, 6.75%, 10/01/37

      1,350,000         1,670,381   

Hospitality Properties Trust, 4.50%, 03/15/25

      500,000         503,506   

Kilroy Realty LP, 4.80%, 07/15/18

      100,000         105,111   

Kinder Morgan Energy Partners LP, 6.50%, 02/01/37

      250,000         263,057   

MetLife Capital Trust X, 9.25%, 04/08/38 (a)

      1,500,000         2,062,219   

MetLife, Inc., 10.75%, 08/01/39

      1,000,000         1,557,000   

National Retail Properties, Inc., 5.50%, 07/15/21

      350,000         401,956   

Noble Holding International Ltd., 6.05%, 03/01/41

      1,000,000         602,500   

PECO Energy Capital Trust IV, 5.75%, 06/15/33

      1,000,000         1,089,389   

Qwest Corp., 7.13%, 11/15/43

      1,000,000         975,000   

Simon Property Group LP, 10.35%, 04/01/19

      150,000         182,772   

 

    57   

SPIRIT OF AMERICA INCOME FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market Value  

Corporate Bonds (cont.)

                  

SL Green Realty Corp., 7.75%, 03/15/20

    $ 1,000,000       $ 1,170,003   

Valero Energy Corp., 8.75%, 06/15/30

      224,000         291,922   

Total Corporate Bonds
(Cost $16,386,372)

         17,408,045   
     Shares         
Preferred Stocks 9.74%      

Financials 2.56%

                  

Aegon NV, 8.00%

      12,900         358,749   

Aflac, Inc., 5.50%

      8,850         235,764   

American Financial Group, Inc., 6.00%

      8,700         233,856   

Aviva PLC, 8.25%

      12,990         341,767   

Bank of New York Mellon Corp./The, 5.20%

      8,700         230,463   

First Republic Bank, 5.70%

      9,000         243,000   

Hancock Holding Co., 5.95%

      3,700         95,312   

JPMorgan Chase & Co, 5.45%

      4,480         117,062   

JPMorgan Chase & Co., 6.30%

      8,750         238,263   

KKR & Co LP, 6.50%

      10,000         256,600   

KKR Financial Holdings LLC, 7.38%

      9,600         264,480   

KKR Financial Holdings LLC, 8.38%

      30,000         784,500   

KKR Financial Holdings LLC, 7.50%

      10,000         265,500   

PNC Financial Services Group, Inc./The, 5.38%

      4,250         109,905   

Protective Life Corp., 6.25%

      11,300         303,631   

State Street Corp, 5.35% (b)

      1,000         26,840   

State Street Corp., 5.25%

      8,050         212,198   

Torchmark Corp., 6.13%

      10,000         264,300   

U.S. Bancorp, 6.50%

      7,300         224,840   

Wells Fargo & Co., 5.70%

      20,000         530,200   

Wells Fargo & Co., 5.20%

      15,850         411,624   
        5,748,854   

Industrials 0.31%

                  

Pitney Bowes, Inc., 6.70%

      5,700         155,553   

Stanley Black & Decker, Inc., 5.75%

      20,687         547,171   
        702,724   

Real Estate Investment Trusts 6.07%

                  

DDR Corp., 6.50%

      9,184         239,335   

Digital Realty Trust, Inc., 6.35%

      25,450         675,697   

Digital Realty Trust, Inc., 6.63%

      11,552         305,781   

Digital Realty Trust, Inc., 7.00%

      33,392         849,159   

Equity Commonwealth, 5.75%

      10,000         256,900   

Kilroy Realty Corp., 6.88%

      20,264         538,820   

Kimco Realty Corp., 6.00%

      32,490         844,090   

Kimco Realty Corp., 5.50%

      39,809         1,028,266   

Kimco Realty Corp., 5.63%

      24,367         628,669   

National Retail Properties, Inc., 6.63%

      14,440         378,328   

PS Business Parks, Inc., 6.45%

      13,537         348,578   

 

58            SPIRIT OF AMERICA

SPIRIT OF AMERICA INCOME FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

    

Shares

      Market Value  

Real Estate Investment Trusts (cont.)

                  

PS Business Parks, Inc., 6.00%

      40,522       $ 1,057,624   

PS Business Parks, Inc., 5.70%

      6,498         171,807   

Public Storage, 5.13%

      10,000         258,800   

Public Storage, 5.88%

      7,076         195,439   

Public Storage, 6.35%

      32,490         818,098   

Public Storage, 5.90%

      12,487         324,412   

Regency Centers Corp., 6.00%

      28,225         733,850   

Regency Centers Corp., 6.63%

      36,221         942,833   

Senior Housing Properties Trust, 5.63%

      26,660         680,097   

Taubman Centers, Inc., 6.25%

      13,046         339,848   

Taubman Centers, Inc., 6.50%

      9,416         244,910   

Ventas Capital Corp., 5.45%

      10,000         277,000   

Vornado Realty Trust, 6.88%

      16,170         424,948   

Vornado Realty Trust, 5.40%

      12,298         319,379   

Welltower, Inc., 6.50%

      28,880         755,790   
        13,638,458   

Utilities 0.80%

                  

DTE Energy Co., 5.38%

      10,000         260,200   

Duke Energy Corp., 5.13%

      9,030         242,817   

NextEra Energy Capital Holdings, Inc., 5.00%

      6,700         175,473   

NextEra Energy Capital Holdings, Inc., 5.63%

      8,775         228,677   

NextEra Energy Capital Holdings, Inc., 5.25%

      15,000         385,350   

SCE Trust I, 5.63%

      19,125         507,386   
        1,799,903   

Total Preferred Stocks

      

    (Cost $20,949,504)

         21,889,939   

Money Market 0.82%

                  

Fidelity Prime Money Market Portfolio, Institutional Class, 0.48% (c)

      1,835,539         1,835,539   

Total Money Market

      

    (Cost $1,835,539)

         1,835,539   

Total Investments — 99.22%

      

(Cost $199,610,554)

         222,889,743   

Other Assets in Excess of Liabilities — 0.78%

         1,753,788   
     

 

 

  

NET ASSETS — 100.00%

             $ 224,643,531   

 

(a) Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. The security may be resold in transactions exempt from registration, normally to qualified institutional buyers. See Note 6 in Notes to Financial Statements.
(b) Variable or Floating Rate Security. Rate disclosed is as of June 30, 2016.
(c) Rate disclosed is the seven day effective yield as of June 30, 2016.

AGM - Assured Guaranty Municipal Corp.

AGM-CR - Assured Guaranty Municipal Corp. Custody Receipts

AMBAC - American Municipal Bond Assurance Corp.

GTD - Guaranteed

OID - Original Issue Discount

SEEK - Support Education Excellence in Kentucky

 

    59   

SPIRIT OF AMERICA INCOME AND OPPORTUNITY FUND

 

SCHEDULE OF INVESTMENTS    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market
Value		  
Municipal Bonds 39.12%      

Alabama 1.95%

                  

Health Care Authority for Baptist Health/The, Health, Hospital, Nursing Home Improvements, Refunding Revenue Bonds, 5.50%, 11/15/43

    $ 1,000,000       $ 1,135,130   

Arizona 2.08%

                  

City of Glendale, AZ, Senior Excise Tax Revenue, Refunding Revenue Bonds, 3.93%, 07/01/31

      500,000         522,625   

City of Tucson, AZ, Certificate Participation, Refunding Revenue Bonds, (AGM), 4.83%, 07/01/34

      620,000         690,110   
        1,212,735   

California 3.24%

                  

City of Newport Beach, CA, Certificate of Participation, Public Improvements, Build America Revenue Bonds, 7.17%, 07/01/40

      800,000         1,100,288   

San Bernardino Community College District, Public Improvements, General Obligation Unlimited, 7.63%, 08/01/44

      505,000         784,386   
        1,884,674   

Florida 2.59%

                  

Miami-Dade County Educational Facilities Authority, Revenue Bonds, 5.07%, 04/01/50

      390,000         466,775   

Pasco County School Board, School Improvements, Certificate Participation, Callable 12/01/24 @ 100, (AGM), 5.00%, 12/01/37

      1,000,000         1,041,150   
        1,507,925   

Georgia 2.11%

                  

Municipal Electric Authority of Georgia, Electric Lights & Power Improvements, Build America Refunding Revenue Bonds, 7.06%, 04/01/57

      1,000,000         1,229,730   

Kansas 1.92%

                  

Kansas Development Finance Authority, Revenue Bonds, 4.73%, 04/15/37

      1,000,000         1,116,520   

Louisiana 0.91%

                  

City of New Orleans, LA, Public & Recreational Facilities Improvements, General Obligation Unlimited, Callable 12/01/24 @ 100, (AGM) (OID), 4.00%, 12/01/31

      500,000         530,390   

Michigan 1.85%

                  

County of Macomb, MI, Retirement Facilities, General Obligation Limited, Callable 11/01/25 @ 100, 4.42%, 11/01/35

      1,000,000         1,079,700   

Minnesota 0.48%

                  

St. Paul, MN Housing & Redevelopment Authority, Revenue Bonds, 4.19%, 07/01/27

      250,000         278,695   

Nebraska 2.96%

                  

Public Power Generation Agency, Electric Lights & Power Improvements, Build America Revenue Bonds, 7.24%, 01/01/41

      1,315,000         1,726,858   

 

60            SPIRIT OF AMERICA

SPIRIT OF AMERICA INCOME AND OPPORTUNITY FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market
Value		  

Nevada 0.24%

                  

County of Washoe, NV, Public & Highway Improvements, Build America Revenue Bonds, 7.97%, 02/01/40

    $ 100,000       $ 137,888   

New Jersey 1.32%

                  

New Jersey Housing & Mortgage Finance Agency, State Multi-Family Housing, Refunding Revenue Bonds, Callable 11/01/24 @ 100, 4.47%, 11/01/37

      750,000         770,580   

New York 2.96%

                  

Metropolitan Transportation Authority, Revenue Bonds, 6.65%, 11/15/39

      225,000         324,365   

New York City Transitional Finance Authority Building Aid Revenue, School Improvements, Miscellaneous Purposes Revenue Bonds, (State Aid Withholding), 5.00%, 07/15/30

      300,000         345,618   

New York State Dormitory Authority, Revenue Bonds, Callable 07/01/26 @ 100, 3.88%, 07/01/46

      750,000         779,617   

Port Authority of New York & New Jersey, Revenue Bonds, Callable 06/01/25 @ 100, 4.82%, 06/01/45

      250,000         276,193   
        1,725,793   

Ohio 5.66%

                  

American Municipal Power, Inc., Electric Lights & Power Improvements, Build America Revenue Bonds, 8.08%, 02/15/50

      1,000,000         1,618,360   

American Municipal Power, Inc., Revenue Bonds, 7.83%, 02/15/41

      1,000,000         1,549,090   

American Municipal Power, Inc., Electric Lights & Power Improvements, Build America Revenue Bonds, 5.94%, 02/15/47

      100,000         130,710   
        3,298,160   

Oregon 1.79%

                  

Washington & Multnomah Counties School District No. 48J Beaverton, Pension Funding, General Obligation Limited, Callable 06/30/25 @ 100, 4.06%, 06/30/34

      1,000,000         1,044,620   

Pennsylvania 1.88%

                  

City of Reading, PA, General Obligation Unlimited, Refunding Revenue Bonds, Callable 11/01/24 @ 100, (AGM) (OID), 5.30%, 11/01/33

      1,000,000         1,097,100   

Tennessee 1.39%

                  

Metropolitan Government of Nashville & Davidson County Convention Center Authority, Public Improvements, Revenue Bonds, 7.43%, 07/01/43

      500,000         701,125   

Metropolitan Government of Nashville & Davidson County, TN, General Obligation Unlimited, Refunding Revenue Bonds, 3.49%, 07/01/29

      100,000         107,107   
        808,232   

Texas 1.55%

                  

El Paso Downtown Development Corp., Recreational Facility Improvements, Revenue Bonds, 7.25%, 08/15/43

      750,000         904,515   

 

    61   

SPIRIT OF AMERICA INCOME AND OPPORTUNITY FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

     Principal
Amount		      Market
Value		  

Wisconsin 2.24%

                  

Public Finance Authority, Parking Facility Improvements, Revenue Bonds, Callable 11/01/24 @ 100, (OID), 5.00%, 11/01/44

    $ 1,250,000       $ 1,305,812   

Total Municipal Bonds
(Cost $20,844,441)

         22,795,057   
     Shares         
Preferred Stocks 19.30%      

Financials 8.42%

                  

Aegon NV, 8.00%

      2,000         55,620   

Aegon NV, 6.38%

      10,000         263,200   

Aviva PLC, 8.25%

      2,000         52,620   

BGC Partners, Inc., 8.13%

      11,550         311,157   

Capital One Financial Corp., 6.70%

      10,000         283,000   

Citigroup, Inc., 6.88%

      12,000         341,400   

Citigroup, Inc., 6.30%

      10,000         267,000   

First Republic Bank, 5.70%

      10,000         270,000   

Hancock Holding Co., 5.95%

      10,200         262,752   

JPMorgan Chase & Co., 6.10%

      10,000         266,100   

JPMorgan Chase & Co., 6.70%

      10,000         282,400   

JPMorgan Chase & Co., 6.30%

      15,750         428,872   

KKR Financial Holdings LLC, 7.38%

      9,600         264,480   

Northern Trust Corp., 5.85%

      6,000         166,740   

Torchmark Corp., 6.13%

      10,000         264,300   

Wells Fargo & Co., 5.70%

      20,000         530,200   

Zions Bancorp, 6.95%

      20,000         600,000   
        4,909,841   

Industrials 0.56%

                  

Pitney Bowes, Inc., 6.70%

      12,000         327,480   

Information Technology 0.46%

                  

eBay, Inc., 6.00%

      10,000         265,700   

Real Estate Investment Trusts 6.81%

                  

Alexandria Real Estate Equities, Inc., 6.45%

      10,800         285,552   

CBL & Associates Properties, Inc., 6.63%

      2,640         65,182   

CBL & Associates Properties, Inc., 7.38%

      4,800         119,664   

DDR Corp., 6.50%

      11,500         299,690   

Digital Realty Trust, Inc., 7.38%

      13,848         400,900   

Digital Realty Trust, Inc., 6.35%

      14,050         373,028   

Equity Commonwealth, 5.75%

      10,000         256,900   

Equity Commonwealth, 6.50%

      6,000         157,980   

Gramercy Property Trust, 7.13%

      3,000         79,935   

Kilroy Realty Corp., 6.88%

      2,495         66,342   

LaSalle Hotel Properties, 7.50%

      10,339         261,577   

Pebblebrook Hotel Trust, 8.00%

      2,600         65,884   

Public Storage, 5.40%

      10,000         265,800   

Realty Income Corp., 6.63%

      6,500         170,495   

 

62            SPIRIT OF AMERICA

SPIRIT OF AMERICA INCOME AND OPPORTUNITY FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

    

Shares

      Market
Value		  

Real Estate Investment Trusts (cont.)

                  

SL Green Realty Corp., 6.50%

      8,100       $ 211,896   

Taubman Centers, Inc., 6.25%

      3,211         83,647   

Taubman Centers, Inc., 6.50%

      16,436         427,500   

Urstadt Biddle Properties, Inc., 6.75%

      4,000         111,600   

Urstadt Biddle Properties, Inc., 7.13%

      10,000         266,600   
        3,970,172   

Telecommunication Services 0.93%

                  

Qwest Corp., 6.88%

      12,000         314,040   

United States Cellular Corp., 7.25%

      8,500         224,825   
        538,865   

Utilities 2.12%

                  

Duke Energy Corp., 5.13%

      10,000         268,900   

Entergy Mississippi, Inc., 6.00%

      2,150         55,126   

NextEra Energy Capital Holdings, Inc., 5.63%

      10,000         260,600   

NextEra Energy Capital Holdings, Inc., 5.25%

      10,000         256,900   

SCE Trust I, 5.63%

      10,000         265,300   

SCE Trust II, 5.10%

      5,000         130,750   
        1,237,576   

Total Preferred Stocks
(Cost $10,521,289)

         11,249,634   
Common Stocks 35.34%      

Consumer Staples 2.33%

                  

Altria Group, Inc.

      6,590         454,446   

Philip Morris International, Inc.

      6,830         694,748   

Reynolds American, Inc.

      3,852         207,738   
        1,356,932   

Energy 10.84%

                  

Buckeye Partners LP

      5,705         401,233   

Cheniere Energy Partners LP

      11,400         341,772   

Cone Midstream Partners LP

      21,900         379,746   

Enbridge Energy Partners LP

      13,511         313,455   

Energy Transfer Partners LP

      10,303         392,235   

EnLink Midstream Partners LP

      18,140         301,668   

Enterprise Products Partners LP

      24,180         707,507   

Magellan Midstream Partners LP

      3,825         290,700   

MPLX LP

      21,950         738,178   

Spectra Energy Partners LP

      5,305         250,290   

Sunoco Logistics Partners LP

      14,850         426,938   

Sunoco LP

      7,200         215,640   

Targa Resources Corp.

      7,750         326,585   

TC PipeLines LP

      6,320         361,883   

Tesoro Logistics LP

      12,532         620,710   

USA Compression Partners LP

      16,966         248,722   
        6,317,262   

 

    63   

SPIRIT OF AMERICA INCOME AND OPPORTUNITY FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

    

Shares

      Market
Value		  

Financials 1.02%

                  

BGC Partners, Inc.

      32,644       $ 284,329   

Blackstone Group LP/The

      12,505         306,873   
        591,202   

Real Estate Investment Trusts 15.62%

                  

Apple Hospitality REIT, Inc.

      56,400         1,060,884   

Ashford Hospitality Trust, Inc.

      33,500         179,895   

Blackstone Mortgage Trust, Inc.

      24,862         687,932   

Chesapeake Lodging Trust

      7,700         179,025   

City Office REIT, Inc.

      56,470         732,981   

Digital Realty Trust, Inc.

      4,760         518,792   

Gramercy Property Trust

      60,814         560,705   

Hannon Armstrong Sustainable Infrastructure Capital, Inc.

      77,829         1,681,106   

Hersha Hospitality Trust

      23,100         396,165   

Independence Realty Trust, Inc.

      76,579         626,416   

Lexington Realty Trust

      65,336         660,547   

Starwood Property Trust, Inc.

      42,190         874,177   

Welltower, Inc.

      3,000         228,510   

WP Carey, Inc.

      10,320         716,414   
        9,103,549   

Telecommunication Services 3.10%

                  

AT&T, Inc.

      36,739         1,587,492   

Verizon Communications, Inc.

      3,950         220,568   
        1,808,060   

Utilities 2.43%

                  

American Electric Power Co., Inc.

      6,170         432,455   

Consolidated Edison, Inc.

      8,690         699,024   

Duke Energy Corp.

      3,335         286,110   
        1,417,589   

Total Common Stocks
(Cost $18,487,729)

         20,594,594   
     Principal
Amount		         

Corporate Bonds 5.17%

                  

American University, 4.32%, 04/01/45

    $ 250,000         261,707   

Entergy Texas, Inc., 5.15%, 06/01/45

      100,000         107,251   

Ford Motor Co., 9.98%, 02/15/47

      500,000         772,749   

McLaren Health Care Corp., 4.53%, 05/15/38

      290,000         297,492   

QUALCOMM, Inc., 4.80%, 05/20/45

      1,000,000         1,051,448   

Wells Fargo & Co., 7.98%, 03/29/49 (a)

      500,000         523,750   

Total Corporate Bonds
(Cost $2,873,183)

         3,014,397   

 

64            SPIRIT OF AMERICA

SPIRIT OF AMERICA INCOME AND OPPORTUNITY FUND

 

SCHEDULE OF INVESTMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

    

Shares

      Market
Value		  

Money Market 0.09%

                  

Fidelity Prime Money Market Portfolio, Institutional Class, 0.48% (b)

      53,435       $ 53,435   

Total Money Market
(Cost $53,435)

         53,435   

Total Investments — 99.02%

      

(Cost $52,780,077)

         57,707,117   

Other Assets in Excess of Liabilities — 0.98%

         572,918   
     

 

 

  

NET ASSETS — 100.00%

             $ 58,280,035   

 

(a) Variable or Floating Rate Security. Rate disclosed is as of June 30, 2016.
(b) Rate disclosed is the seven day effective yield as of June 30, 2016.

AGM - Assured Guaranty Municipal Corp.

OID - Original Issue Discount

REIT - Real Estate Investment Trust

 

    65   

STATEMENTS OF ASSETS AND LIABILITIES

JUNE 30, 2016 (UNAUDITED)

 

    Spirit of America
Real Estate Income
and Growth Fund		     Spirit of America
Large Cap Value
Fund		     Spirit of America
Municipal Tax
Free Bond Fund		     Spirit of America
Income Fund		     Spirit of America
Income and
Opportunity Fund		  

ASSETS

                                        

Investments in securities at value (cost $78,496,465, $45,161,680, $101,934,118, $199,610,554 and $52,780,077)

   $ 115,926,017      $ 70,894,549      $ 110,747,869      $ 222,889,743      $ 57,707,117   

Receivable for Fund shares sold

     59,918        113,725        396,219        257,441        202,161   

Dividends and interest receivable

     449,227        100,542        1,284,893        2,785,344        484,398   

Receivable for investments sold

     52,025        482,451        —        —        —   

Prepaid expenses

     27,915        23,544        39,281        41,331        22,996   

TOTAL ASSETS

     116,515,102        71,614,811        112,468,262        225,973,859        58,416,672   

LIABILITIES

                                        

Options written, at value (premium received $6,167, $3,598, $0, $0 and $0)

     3,900        950        —        —        —   

Line of credit payable

     —        78,788        384,064        —        —   

Payable for Fund shares redeemed

     84,202        205,720        155,214        250,004        1,500   

Payable for investments purchased

     100,000        167,604        321,852        650,910        —   

Payable for distributions to shareholders

     —        —        100,109        226,527        66,383   

Payable for investment advisory fees

     88,993        55,966        41,651        109,787        31,299   

Payable for distribution (12b-1) fees

     27,524        17,312        13,496        45,290        11,706   

Payable for accounting and administration fees

     5,803        4,437        13,750        15,435        3,492   

Payable for transfer agent fees

     13,797        7,052        4,616        14,731        3,081   

Other accrued expenses

     19,618        21,920        13,080        17,644        19,176   

TOTAL LIABILITIES

     343,837        559,749        1,047,832        1,330,328        136,637   

NET ASSETS

   $ 116,171,265      $ 71,055,062      $ 111,420,430      $ 224,643,531      $ 58,280,035   

SOURCE OF NET ASSETS

                                        

As of June 30 2016, net assets consisted of:

          

Paid-in capital

   $ 72,747,564      $ 44,037,275      $ 111,214,283      $ 207,392,731      $ 58,365,390   

Accumulated undistributed net investment income (loss)

     1,498,796        212,374        —        39,654        (24,055 ) 

Accumulated net realized gain (loss) on investments

     4,493,086        1,069,896        (8,607,604 )      (6,068,043 )      (4,988,340 ) 

Net unrealized appreciation on investments

     37,431,819        25,735,517        8,813,751        23,279,189        4,927,040   

NET ASSETS

   $ 116,171,265      $ 71,055,062      $ 111,420,430      $ 224,643,531      $ 58,280,035   

NET ASSETS:

          

Class A Shares

   $ 116,170,175      $ 71,048,869      $ 111,419,392      $ 224,572,982      $ 58,219,324   

Class C Shares

   $ 1,090      $ 6,193      $ 1,038      $ 70,549      $ 60,711   

SHARES OUTSTANDING ($0.001 par value, 500,000,000 authorized shares):

  

  

Class A Shares

     9,093,310        3,736,953        11,264,380        18,189,610        5,888,306   

Class C Shares

     85        325        105        5,716        6,165   

NET ASSET VALUE AND REDEMPTION PRICE PER SHARE

  

  

Class A Shares

   $ 12.78      $ 19.01      $ 9.89      $ 12.35      $ 9.89   

Class C Shares (b)

   $ 12.78  (a)    $ 19.04  (a)    $ 9.89      $ 12.34      $ 9.85   

OFFERING PRICE PER SHARE (100%/(100%-maximum sales charge)

  

of net asset value adjusted to the nearest cent) per share:

          

Class A Shares

   $ 13.49      $ 20.06      $ 10.38      $ 12.97      $ 10.38   

MAXIMUM SALES CHARGE:

  

  

Class A Shares

     5.25 %      5.25 %      4.75 %      4.75 %      4.75 % 

(a) Per share amounts may not recalculate due to rounding of net assets and/or shares outstanding.

(b) A contingent deferred sales charge (“CDSC”) of 1.00% may be charged on shares held less than 13 months.

 

66            SPIRIT OF AMERICA

STATEMENTS OF OPERATIONS

SIX MONTHS ENDED JUNE 30, 2016 (UNAUDITED)

 

    Spirit of America
Real Estate Income
and Growth Fund		     Spirit of America
Large Cap Value
Fund		     Spirit of America
Municipal Tax
Free Bond Fund		     Spirit of America
Income Fund		     Spirit of America
Income and
Opportunity Fund		  

INVESTMENT INCOME

                                        

Dividends

   $ 2,655,974      $ 1,015,069      $ —      $ 1,069,699      $ 992,775   

Foreign dividend taxes withheld

     —        —        —        (603 )      —   

Interest

     8,906        —        2,205,131        4,768,875        576,435   

TOTAL INVESTMENT INCOME

     2,664,880        1,015,069        2,205,131        5,837,971        1,569,210   

EXPENSES

                                        

Investment advisory

     536,962        335,880        318,101        628,727        173,212   

Distribution (12b-1) — Class A

     166,070        103,875        79,526        261,930        66,597   

Distribution (12b-1) — Class C (a)

     3        17        3        161        94   

Accounting and Administration

     33,533        22,958        58,106        78,160        19,124   

Auditing

     13,969        11,637        11,637        11,637        11,637   

Chief Compliance Officer

     1,595        1,004        1,486        2,927        740   

Custodian

     5,075        3,274        4,298        8,127        2,516   

Directors

     6,936        4,351        6,564        12,919        3,244   

Insurance

     10,931        6,831        10,095        19,909        5,032   

Legal

     4,526        2,833        4,245        8,344        2,110   

Printing

     24,755        21,920        19,456        41,163        19,469   

Registration

     7,934        6,918        11,246        9,906        8,261   

Transfer agent

     52,541        31,667        28,629        84,694        19,092   

Line of credit

     305        187        274        543        137   

Interest

     1,138        51        169        —        7   

Other

     2,209        1,740        1,763        3,124        1,673   

TOTAL EXPENSES

     868,482        555,143        555,598        1,172,271        332,945   

Fees recouped (waived) by Adviser

     —        —        (77,783 )      (17,432 )      460   

NET EXPENSES

     868,482        555,143        477,815        1,154,839        333,405   

NET INVESTMENT INCOME

     1,796,398        459,926        1,727,316        4,683,132        1,235,805   

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS

                                        

Net realized gain (loss) from investment transactions

     479,885        573,250        78,549        (3,104,490 )      (3,380,008 ) 

Net realized gain on written option transactions

     5,207        9,652        —        —        —   

Net change in unrealized appreciation (depreciation) of investments

     6,846,427        619,872        3,514,754        14,898,890        7,606,086   

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS

     7,331,519        1,202,774        3,593,303        11,794,400        4,226,078   

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

   $ 9,127,917      $ 1,662,700      $ 5,320,619      $ 16,477,532      $ 5,461,883   

 

(a) For the period March 15, 2016 (commencement of operations) through June 30, 2016.

 

    67   

STATEMENTS OF CHANGES IN NET ASSETS

 

    Spirit of America Real Estate Income
and Growth Fund		     Spirit of America Large Cap Value Fund  
    For the Six Months
Ended
June 30, 2016		    

For the Year

Ended
December 31, 2015

     For the Six Months
Ended
June 30, 2016		    

For the Year

Ended
December 31, 2015

  
    (Unaudited)           (Unaudited)        

OPERATIONS

                                

Net investment income

   $ 1,796,398      $ 651,144      $ 459,926      $ 304,895   

Net realized gain (loss) on investment transactions

     485,092        12,146,550        582,902        2,507,865   

Net change in unrealized appreciation (depreciation) of investments

     6,846,427        (15,363,427 )      619,872        (5,035,097 ) 

Net increase (decrease) in net assets resulting from operations

     9,127,917        (2,565,733 )      1,662,700        (2,222,337 ) 

DISTRIBUTIONS TO SHAREHOLDERS

                                

From net investment income:

        

Class A

     (302,670 )      (651,144 )      (248,790 )      (352,126 ) 

Class C (a)

     —        —        —        —   

From realized gains:

        

Class A

     —        (9,154,195 )      —        (1,909,115 ) 

From return of capital

        

Class A

     —        —        —        —   

Total distributions to shareholders

     (302,670 )      (9,805,339 )      (248,790 )      (2,261,241 ) 

CAPITAL TRANSACTIONS

                                

Class A Shares:

        

Shares sold

     2,824,699        11,901,788        4,040,651        15,155,485   

Shares issued from reinvestment of distributions

     264,108        8,690,185        231,131        2,123,477   

Shares redeemed

     (11,923,431 )      (30,579,816 )      (6,675,917 )      (16,893,608 ) 

Total Class A Shares

     (8,834,624 )      (9,987,843 )      (2,404,135 )      385,354   

Class C Shares (a):

        

Shares sold

     1,000        —        6,000        —   

Shares issued from reinvestment of distributions

     —        —        —        —   

Total Class C Shares

     1,000        —        6,000        —   

Increase (decrease) in net assets derived from capital share transactions

     (8,833,624 )      (9,987,843 )      (2,398,135 )      385,354   

Total increase (decrease) in net assets

     (8,377 )      (22,358,915 )      (984,225 )      (4,098,224 ) 

NET ASSETS

                                

Beginning of period

     116,179,642        138,538,557        72,039,287        76,137,511   

End of period

   $ 116,171,265      $ 116,179,642      $ 71,055,062      $ 72,039,287   

Accumuluated undistributed net investment income (loss)

   $ 1,498,796      $ 5,068      $ 212,374      $ 1,238   

SHARE TRANSACTIONS

                                

Class A Shares:

        

Shares sold

     240,963        903,665        223,472        772,300   

Shares issued from reinvestment of distributions

     21,625        726,241        12,433        112,512   

Shares redeemed

     (1,007,467 )      (2,358,503 )      (365,256 )      (867,209 ) 

Total Class A Shares

     (744,879 )      (728,597 )      (129,351 )      17,603   

Class C Shares (a):

        

Shares sold

     85          325     

Shares issued from reinvestment of distributions

     —        —        —        —   

Total Class C Shares

     85        —        325        —   

Increase (decrease) in shares outstanding

     (744,794 )      (728,597 )      (129,026 )      17,603   

 

(a) For the period March 15, 2016 (commencement of operations) through June 30, 2016.

 

68            SPIRIT OF AMERICA

STATEMENTS OF CHANGES IN NET ASSETS (CONT.)

 

Spirit of America Municipal Tax Free

Bond Fund

     Spirit of America Income Fund    

Spirit of America Income and

Opportunity Fund

  

For the Six Months

Ended

June 30, 2016

    

For the Year

Ended
December 31, 2015

    

For the Six Months

Ended

June 30, 2016

    

For the Year

Ended
December 31, 2015

    

For the Six Months
Ended

June 30, 2016

    

For the Year

Ended
December 31, 2015

  
(Unaudited)           (Unaudited)           (Unaudited)        
$ 1,727,316      $ 3,607,025      $ 4,683,132      $ 8,783,029      $ 1,235,805      $ 1,194,922   
  78,549        (793,373 )      (3,104,490 )      (1,218,733 )      (3,380,008 )      (1,137,541 ) 
  3,514,754        60,925        14,898,890        (7,969,270 )      7,606,086        (3,394,005 ) 
  5,320,619        2,874,577        16,477,532        (404,974 )      5,461,883        (3,336,624 ) 
         
  (1,727,309 )      (3,607,025 )      (4,315,740 )      (8,752,009 )      (1,159,606 )      (1,244,119 ) 
  (7 )      —        (581 )      —        (349 )      —   
         
  —        —        —        —        —        —   
         
  —        —        —        (773,014 )      —        (800,789 ) 
  (1,727,316 )      (3,607,025 )      (4,316,321 )      (9,525,023 )      (1,159,955 )      (2,044,908 ) 
         
  13,406,768        21,777,653        26,376,116        52,557,128        7,864,298        37,720,439   
  1,106,908        2,333,304        2,924,640        6,629,987        785,961        1,418,799   
  (9,492,879 )      (27,926,223 )      (18,605,112 )      (57,808,173 )      (6,253,317 )      (12,705,183 ) 
  5,020,797        (3,815,266 )      10,695,644        1,378,942        2,396,942        26,434,055   
         
  1,000        —        67,594        —        58,003        —   
  7        —        588        —        349        —   
  1,007        —        68,182        —        58,352        —   
  5,021,804        (3,815,266 )      10,763,826        1,378,942        2,455,294        26,434,055   
  8,615,107        (4,547,714 )      22,925,037        (8,551,055 )      6,757,222        21,052,523   
  102,805,323        107,353,037        201,718,494        210,269,549        51,522,813        30,470,290   
$ 111,420,430      $ 102,805,323      $ 224,643,531      $ 201,718,494      $ 58,280,035      $ 51,522,813   
$ —      $ —      $ 39,654      $ (327,157 )    $ (24,055 )    $ (99,905 ) 
         
  1,381,253        2,290,315        2,212,482        4,385,572        852,525        3,803,916   
  113,925        244,840        244,012        552,485        83,667        146,268   
  (978,033 )      (2,941,798 )      (1,561,622 )      (4,830,992 )      (675,144 )      (1,311,154 ) 
  517,145        (406,643 )      894,872        107,065        261,048        2,639,030   
         
  104          5,667          6,129     
  1        —        49        —        36        —   
  105        —        5,716        —        6,165        —   
  517,250        (406,643 )      900,588        107,065        267,213        2,639,030   

 

    69   

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND

CLASS A

FINANCIAL HIGHLIGHTS

 

The table below sets forth financial data for one share of beneficial interest outstanding throughout the period presented.

 

     For The
Six Months Ended
June 30, 2016		     For The Year Ended December 31  
       2015     2014     2013     2012     2011  
     (Unaudited)                                

Net Asset Value, Beginning of Period

    $ 11.81      $ 13.11      $ 10.26      $ 10.06      $ 8.88      $ 8.94   

From Investment Operations:

                                                 

Net investment income

      0.20        0.06        0.16        0.04        0.08 1      0.03 1 

Net realized and unrealized gain (loss) on investments

      0.80        (0.30 )      2.86        0.28        1.26        0.08   

Total from investment operations

      1.00        (0.24 )      3.02        0.32        1.34        0.11   

Less Distributions:

                                                 

Distributions from net investment income

      (0.03 )      (0.06 )      (0.16 )      (0.04 )      (0.16 )      (0.04 ) 

Distributions from capital gains

      —        (1.00 )      (0.01 )      —        —        —   

Distributions from return of capital

      —        —        —        (0.08 )      —        (0.13 ) 

Total distributions

      (0.03 )      (1.06 )      (0.17 )      (0.12 )      (0.16 )      (0.17 ) 
                                                  

Net Asset Value, End of Period

    $ 12.78      $ 11.81      $ 13.11      $ 10.26      $ 10.06      $ 8.88   

Total Return2

      8.49 %3       (1.88 )%      29.55 %      3.15 %      15.10 %      1.24 % 

Ratios/Supplemental Data:

                                                 

Net assets, end of period (000)

    $ 116,170      $ 116,180      $ 138,539      $ 126,852      $ 134,353      $ 139,027   

Ratio of expenses to average net assets

      1.57 %4      1.57 %      1.56 %      1.68 %      1.75 %      1.74 % 

Ratio of net investment income to average net assets

      3.25 %4      0.50 %      1.36 %      0.33 %      0.84 %      0.38 % 

Portfolio turnover

      5 %3       37 %      43 %      31 %      10 %      7 % 

1 Calculated based on the average number of shares outstanding during the period.

2 Calculation does not reflect sales load.

3 Not annualized.

4 Annualized.

 

 

 

See accompanying notes which are an integral part of these financial statements.

 

70            SPIRIT OF AMERICA

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND

CLASS C

FINANCIAL HIGHLIGHTS

 

The table below sets forth financial data for one share of beneficial interest outstanding throughout the period presented.

 

     For The
Period Ended
June 30, 2016*		  
     (Unaudited)  

Net Asset Value, Beginning of Period

    $ 11.73   

From Investment Operations:

         

Net investment income

      0.08   

Net realized and unrealized gain on investments

      0.97   

Total from investment operations

      1.05   
          

Net Asset Value, End of Period

    $ 12.78   

Total Return1

      9.04 %2  

Ratios/Supplemental Data:

         

Net assets, end of period (000)

    $ 1   

Ratio of expenses to average net assets

      2.27 %3 

Ratio of net investment income to average net assets

      2.29 %3 

Portfolio turnover

      5 %2  

* For the period March 15, 2016 (commencement of operations) to June 30, 2016.

1 Calculation does not reflect contingent deferred sales charge.

2 Not annualized.

3 Annualized.

See accompanying notes which are an integral part of these financial statements.

 

    71   

SPIRIT OF AMERICA LARGE CAP VALUE FUND

CLASS A

FINANCIAL HIGHLIGHTS

 

The table below sets forth financial data for one share of beneficial interest outstanding throughout the period presented.

 

     For The
Six Months Ended
June 30, 2016		    

For The Year Ended December 31

 

  
       2015     2014     2013     2012     2011  
     (Unaudited)                                

Net Asset Value, Beginning of Period

    $ 18.63      $ 19.78      $ 17.72      $ 14.18      $ 12.78      $ 12.82   

From Investment Operations:

                                                 

Net investment income

      0.12        0.08        0.14        0.12        0.09 1      0.03 1 

Net realized and unrealized gain (loss) on investments

      0.32        (0.63 )      2.10        3.54        1.40        (0.02 ) 

Total from investment operations

      0.44        (0.55 )      2.24        3.66        1.49        0.01   

Less Distributions:

                                                 

Distributions from net investment income

      (0.06 )      (0.09 )      (0.14 )      (0.12 )      (0.09 )      (0.05 ) 

Distributions from capital gains

      —        (0.51 )      (0.04 )      —        —        —   

Total distributions

      (0.06 )      (0.60 )      (0.18 )      (0.12 )      (0.09 )      (0.05 ) 
                                                  

Net Asset Value, End of Period

    $ 19.01      $ 18.63      $ 19.78      $ 17.72      $ 14.18      $ 12.78   

Total Return2

      2.40 %3       (2.83 )%      12.68 %      25.90 %      11.63 %      0.05 % 

Ratios/Supplemental Data:

                                                 

Net assets, end of period (000)

    $ 71,049      $ 72,039      $ 76,138      $ 71,248      $ 54,436      $ 49,676   

Ratio of expenses to average net assets:

             

Before expense reimbursement or recapture

      1.60 %4      1.60 %      1.60 %      1.68 %      1.86 %      1.89 % 

After expense reimbursement or recapture

      1.60 %4      1.60 %      1.60 %      1.68 %      1.86 %      1.96 % 

Ratio of net investment income to average net assets

      1.33 %4      0.40 %      0.78 %      0.77 %      0.60 %      0.26 % 

Portfolio turnover

      11 %3       19 %      15 %      22 %      12 %      19 % 

1 Calculated based on the average number of shares outstanding during the period.

2 Calculation does not reflect sales load.

3 Not annualized.

4 Annualized.

 

 

See accompanying notes which are an integral part of these financial statements.

 

72            SPIRIT OF AMERICA

SPIRIT OF AMERICA LARGE CAP VALUE FUND

CLASS C

FINANCIAL HIGHLIGHTS

 

The table below sets forth financial data for one share of beneficial interest outstanding throughout the period presented.

 

     For The
Period Ended
June 30, 2016*		  
     (Unaudited)  

Net Asset Value, Beginning of Period

    $ 18.29   

From Investment Operations:

         

Net investment income

      0.01   

Net realized and unrealized gain on investments

      0.74   

Total from investment operations

      0.75   
          

Net Asset Value, End of Period

    $ 19.04   

Total Return1

      3.93 %2  

Ratios/Supplemental Data:

         

Net assets, end of period (000)

    $ 6   

Ratio of expenses to average net assets

      2.30 %3 

Ratio of net investment income to average net assets

      0.23 %3 

Portfolio turnover

      11 %2  

* For the period March 15, 2016 (commencement of operations) to June 30, 2016.

1 Calculation does not reflect contingent deferred sales charge.

2 Not annualized.

3 Annualized.

See accompanying notes which are an integral part of these financial statements.

 

    73   

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

CLASS A

FINANCIAL HIGHLIGHTS

 

The table below sets forth financial data for one share of beneficial interest outstanding throughout the period presented.

 

     For The
Six Months Ended
June 30, 2016		    

For The Year Ended December 31

 

  
       2015     2014     2013     2012     2011  
     (Unaudited)                                

Net Asset Value, Beginning of Period

    $ 9.57      $ 9.62      $ 8.89      $ 10.08      $ 9.64      $ 9.04   

From Investment Operations:

                                                 

Net investment income

      0.16        0.33        0.35        0.36        0.41 1      0.49 1 

Net realized and unrealized gain (loss) on investments

      0.32        (0.05 )      0.73        (1.19 )      0.44        0.60   

Total from investment operations

      0.48        0.28        1.08        (0.83 )      0.85        1.09   

Less Distributions:

                                                 

Distributions from net investment income

      (0.16 )      (0.33 )      (0.35 )      (0.36 )      (0.41 )      (0.49 ) 

Total distributions

      (0.16 )      (0.33 )      (0.35 )      (0.36 )      (0.41 )      (0.49 ) 
                                                  

Net Asset Value, End of Period

    $ 9.89      $ 9.57      $ 9.62      $ 8.89      $ 10.08      $ 9.64   

Total Return2

      5.03 %3       3.01 %      12.35 %      (8.39 )%      8.91 %      12.41 % 

Ratios/Supplemental Data:

                                                 

Net assets, end of period (000)

    $ 111,419      $ 102,805      $ 107,353      $ 111,850      $ 156,793      $ 102,477   

Ratio of expenses to average net assets:

             

Before expense reimbursement or recapture

      1.05 %4      1.10 %      1.10 %      1.11 %      1.15 %      1.20 % 

After expense reimbursement or recapture

      0.90 %4      0.91 %5      0.90 %      0.90 %      0.90 %      0.90 % 

Ratio of net investment income to average net assets

      3.26 %4      3.50 %      3.78 %      3.78 %      4.01 %      5.28 % 

Portfolio turnover

      4 %3       11 %      7 %      19 %      13 %      23 % 

1 Calculated based on the average number of shares outstanding during the period.

2 Calculation does not reflect sales load.

3 Not annualized.

4 Annualized.

5 Includes interest expense of 0.01%.

 

See accompanying notes which are an integral part of these financial statements.

 

74            SPIRIT OF AMERICA

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND

CLASS C

FINANCIAL HIGHLIGHTS

 

The table below sets forth financial data for one share of beneficial interest outstanding throughout the period presented.

 

     For The
Period Ended
June 30, 2016*		  
     (Unaudited)  

Net Asset Value, Beginning of Period

    $ 9.59   

From Investment Operations:

         

Net investment income

      0.06   

Net realized and unrealized gain on investments

      0.30   

Total from investment operations

      0.36   

Less Distributions:

         

Distributions from net investment income

      (0.06 ) 

Total distributions

      (0.06 ) 
          

Net Asset Value, End of Period

    $ 9.89   

Total Return1

      3.80 %2  

Ratios/Supplemental Data:

         

Net assets, end of period (000)

    $ 1   

Ratio of expenses to average net assets:

   

Before expense reimbursement or recapture

      1.90 %3 

After expense reimbursement or recapture

      1.75 %3 

Ratio of net investment income to average net assets

      2.33 %3 

Portfolio turnover

      4 %2  

* For the period March 15, 2016 (commencement of operations) to June 30, 2016.

1 Calculation does not reflect contingent deferred sales charge.

2 Not annualized.

3 Annualized.

See accompanying notes which are an integral part of these financial statements.

 

    75   

SPIRIT OF AMERICA INCOME FUND

CLASS A

FINANCIAL HIGHLIGHTS

 

The table below sets forth financial data for one share of beneficial interest outstanding throughout the period presented.

 

     For The Six
Months Ended
June 30, 2016		    

For The Year Ended December 31

 

  
       2015     2014     2013     2012     2011  
     (Unaudited)                                

Net Asset Value, Beginning of Period

    $ 11.66      $ 12.23      $ 11.19      $ 12.24      $ 11.69      $ 10.73   

From Investment Operations:

                                                 

Net investment income

      0.26        0.51        0.53        0.53        0.59        0.70 1 

Net realized and unrealized gain (loss) on investments

      0.67        (0.53 )      1.10        (1.00 )      0.61        0.98   

Total from investment operations

      0.93        (0.02 )      1.63        (0.47 )      1.20        1.68   

Less Distributions:

                                                 

Distributions from net investment income

      (0.24 )      (0.51 )      (0.54 )      (0.52 )      (0.60 )      (0.71 ) 

Distributions from capital gains

      —        —        —        —        (0.05 )      (0.01 ) 

Distributions from return of capital

      —        (0.04 )      (0.05 )      (0.06 )      —        —   

Total distributions

      (0.24 )      (0.55 )      (0.59 )      (0.58 )      (0.65 )      (0.72 ) 
                                                  

Net Asset Value, End of Period

    $ 12.35      $ 11.66      $ 12.23      $ 11.19      $ 12.24      $ 11.69   

Total Return2

      8.09 %3       (0.17 )%      14.79 %      (3.97 )%      10.51 %      16.12 % 

Ratios/Supplemental Data:

                                                 

Net assets, end of period (000)

    $ 224,573      $ 201,718      $ 210,270      $ 212,201      $ 252,025      $ 150,472   

Ratio of expenses to average net assets:

             

Before expense reimbursement or recapture

      1.12 %4      1.15 %      1.15 %      1.19 %      1.22 %      1.30 % 

After expense reimbursement or recapture

      1.10 %4      1.10 %      1.10 %      1.10 %      1.10 %      1.10 % 

Ratio of net investment income to average net assets

      4.47 %4      4.24 %      4.44 %      4.47 %      4.85 %      6.19 % 

Portfolio turnover

      2 %3       9 %      9 %      25 %      3 %      3 % 

1 Calculated based on the average number of shares outstanding during the period.

2 Calculation does not reflect sales load.

3 Not annualized.

4 Annualized.

See accompanying notes which are an integral part of these financial statements.

 

76            SPIRIT OF AMERICA

SPIRIT OF AMERICA INCOME FUND

CLASS C

FINANCIAL HIGHLIGHTS

 

The table below sets forth financial data for one share of beneficial interest outstanding throughout the period presented.

 

     For The
Period Ended
June 30, 2016*		  
     (Unaudited)  

Net Asset Value, Beginning of Period

    $ 11.78   

From Investment Operations:

         

Net investment income

      0.12   

Net realized and unrealized gain on investments

      0.56   

Total from investment operations

      0.68   

Less Distributions:

         

Distributions from net investment income

      (0.12 ) 

Total distributions

      (0.12 ) 
          

Net Asset Value, End of Period

    $ 12.34   

Total Return1

      5.84 %2  

Ratios/Supplemental Data:

         

Net assets, end of period (000)

    $ 71   

Ratio of expenses to average net assets:

   

Before expense reimbursement or recapture

      1.87 %3 

After expense reimbursement or recapture

      1.85 %3 

Ratio of net investment income to average net assets

      3.61 %3 

Portfolio turnover

      2 %2  

* For the period March 15, 2016 (commencement of operations) to June 30, 2016.

1 Calculation does not reflect contingent deferred sales charge.

2 Not annualized.

3 Annualized.

See accompanying notes which are an integral part of these financial statements.

 

    77   

SPIRIT OF AMERICA INCOME AND OPPORTUNITY FUND

CLASS A

FINANCIAL HIGHLIGHTS

 

The table below sets forth financial data for one share of beneficial interest outstanding throughout the period presented.

 

    For The
Six Months Ended
June 30, 2016		    

For the Year

Ended
December 31, 2015

    

For the Year

Ended
December 31, 2014

     For the
Period Ended
December 31, 2013*		  
    (Unaudited)                    

Net Asset Value, Beginning of Period

   $ 9.16      $ 10.20      $ 9.62      $ 10.00   

Income from Investment Operations:

                                

Net investment income

     0.21        0.25        0.39        0.14   

Net realized and unrealized gain (loss) on investments

     0.72        (0.86 )      0.73        (0.31 ) 

Total income from investment operations

     0.93        (0.61 )      1.12        (0.17 ) 

Less Distributions:

                                

Distributions from net investment income

     (0.20 )      (0.26 )      (0.39 )      (0.15 ) 

Distributions from capital gains

     —        —        —        (0.01 ) 

Distributions from return of capital

     —        (0.17 )      (0.15 )      (0.05 ) 

Total distributions

     (0.20 )      (0.43 )      (0.54 )      (0.21 ) 
                                 

Net Asset Value, End of Period

   $ 9.89      $ 9.16      $ 10.20      $ 9.62   

Total Return1

     10.30 %2       (6.19 )%      11.74 %      (1.63 )%2  

Ratios/Supplemental Data:

                                

Net assets, end of period (000)

   $ 58,219      $ 51,523      $ 30,470      $ 7,398   

Ratio of expenses to average net assets:

        

Before expense reimbursement or recapture

     1.25 %3      1.28 %      1.66 %4      2.72 %3 

After expense reimbursement or recapture

     1.25 %3      1.25 %      1.26 %4      1.50 %3 

Ratio of net investment income to average net assets

     4.63 %3      2.63 %      3.83 %      3.25 %3 

Portfolio turnover

     10 %2       8 %      20 %      12 %2  

* For the period July 8, 2013 (commencement of operations) to December 31, 2013.

1 Calculation does not reflect sales load.

2 Not annualized.

3 Annualized.

4 Includes interest expense of 0.01%.

See accompanying notes which are an integral part of these financial statements.

 

78            SPIRIT OF AMERICA

SPIRIT OF AMERICA INCOME AND OPPORTUNITY FUND

CLASS C

FINANCIAL HIGHLIGHTS

 

The table below sets forth financial data for one share of beneficial interest outstanding throughout the period presented.

 

    

For The

Period Ended

June 30, 2016*

  
     (Unaudited)  

Net Asset Value, Beginning of Period

    $ 9.14   

From Investment Operations:

         

Net investment income

      0.11   

Net realized and unrealized gain on investments

      0.71   

Total from investment operations

      0.82   

Less Distributions:

         

Distributions from net investment income

      (0.11 ) 

Total distributions

      (0.11 ) 
          

Net Asset Value, End of Period

    $ 9.85   

Total Return1

      8.81 %2  

Ratios/Supplemental Data:

         

Net assets, end of period (000)

    $ 61   

Ratio of expenses to average net assets:

   

Before expense reimbursement or recapture

      2.00 %3 

After expense reimbursement or recapture

      2.00 %3 

Ratio of net investment income to average net assets

      3.67 %3 

Portfolio turnover

      10 %2  

* For the period March 15, 2016 (commencement of operations) to June 30, 2016.

1 Calculation does not reflect contingent deferred sales charge.

2 Not annualized.

3 Annualized.

See accompanying notes which are an integral part of these financial statements.

 

    79   

NOTES TO FINANCIAL STATEMENTS    JUNE 30, 2016 (UNAUDITED)

 

Note 1 – Organization

Spirit of America Investment Fund, Inc. (the “Company”), is an open-end diversified mutual fund registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Company was incorporated under the laws of Maryland on May 15, 1997. The Company offers 6 separate series, or mutual funds, each with its own investment objective and strategy. This report includes the following funds (individually, a “Fund”, or collectively, the “Funds”):

Spirit of America Real Estate Income and Growth Fund (the “Real Estate Fund”) commenced operations on January 9, 1998. The Fund seeks current income and growth of capital by investing in equity real estate investment trusts (“REITs”) and the equity securities of real estate industry companies.

Spirit of America Large Cap Value Fund (the “Value Fund”) commenced operations on August 1, 2002. The Fund seeks capital appreciation with a secondary objective of current income by investing in equity securities in the large cap value segment of the U.S. equity market.

Spirit of American Municipal Tax Free Bond Fund (the “Municipal Fund”) commenced operations on February 29, 2008. The Fund seeks high current income that is exempt from federal income tax, investing at least 80% of its assets in municipal bonds.

Spirit of America Income Fund (the “Income Fund”) commenced operations on December 31, 2008. The Fund seeks high current income, investing at least 80% of its assets in a portfolio of taxable municipal bonds, income producing convertible securities, preferred stocks, high yield U.S. corporate bonds (frequently called “junk” bonds), and collateralized mortgage obligations (“CMOs”).

Spirit of America Income & Opportunity Fund (the “Opportunity Fund”) commenced operations on July 8, 2013. The Fund seeks to achieve its investment objective of providing shareholders with current income and the potential for capital appreciation by investing a substantial percentage of its total assets in a portfolio of common and preferred stocks, fixed income securities of any grade, as well non-rated fixed income securities, both short-term and long- term, including zero-coupon securities, taxable and tax-free municipal bonds, income producing convertible securities, corporate bonds, including high-yield U.S. corporate bonds, floating rate bonds and step coupon bonds, municipal lease agreements, certificates of participation and collateralized mortgage obligations (“CMOs”), U.S. government agency securities, including securities issued by the Federal National Mortgage Association (“FNMA”), the Federal Home Loan Mortgage Corporation (“FHLMC”), and the Government National Mortgage Association (“GNMA”), equity real estate investment companies (“REITs”), which are subject to federal income tax, and Master Limited Partnerships (“MLPs”).

Each Fund currently offers Class A Shares and Class C Shares. Each class of shares for each Fund has identical rights and privileges except with respect to distribution (12b-1) and service fees, voting rights on matters affecting a single class of shares, exchange privileges of each class of shares and sales charges. The price at which the Funds will offer or redeem shares is the net asset value (“NAV”) per share next determined after the order is considered received, subject to any applicable front end or contingent deferred sales charges. Class A shares have a maximum sales charge on purchases of 5.25% for Real Estate Fund and Value Fund, and 4.75% for Municipal Fund, Income Fund and Opportunity Fund, as a percentage of the original purchase price. A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may be imposed on redemptions of Class A shares that were purchased within one year of the redemption date where an indirect commission was paid. CDSC on Class C Shares applies to shares sold within 13 months of purchase.

Note 2 – Significant Accounting Policies

Each Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies”. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with generally accepted accounting principles in the United States of America (“GAAP”) for investment companies.

A. Security Valuation: The offering price and NAV per share for the Funds are calculated as of the close of regular trading on the New York Stock Exchange (“NYSE”), currently 4:00 p.m., Eastern Time on each day the NYSE is open for trading. Each Fund’s securities are valued at the official close or the last reported sales price on the principal exchange on which the security trades, or if no sales price is reported, the mean of the latest bid and asked prices is used. Securities traded over-the-counter are priced at the mean of the latest bid and asked prices. Unlisted securities traded in the over-the-counter market

 

80            SPIRIT OF AMERICA

NOTES TO FINANCIAL STATEMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

are valued using an evaluated quote provided by the independent pricing service, or, if an evaluated quote is unavailable, such securities are valued using prices received from dealers, provided that if the dealer supplies both bid and ask prices, the price to be used is the mean of the bid and asked prices. The independent pricing service derives an evaluated quote by obtaining dealer quotes, analyzing the listed markets, reviewing trade execution data and employing sensitivity analysis. Evaluated quotes may also reflect appropriate factors such as individual characteristics of the issue, communications with broker-dealers, and other market data. Short-term investments having a maturity of 60 days or less and not having a price supplied by the independent pricing service may be valued at amortized cost, which the Board of Directors (the “Board”) believes represents fair value. Fund securities for which market quotations are not readily available are valued at fair value as determined in good faith under procedures established by and under the supervision of the Board.

B. Fair Value Measurements: Various inputs are used in determining the fair value of investments which are as follows:

 

•   Level 1 –

   Unadjusted quoted prices in active markets for identical investments and/or registered investment companies where the value per share is determined and published and is the basis for current transactions for identical assets or liabilities at the valuation date.

•   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 based on the best information available in the circumstances, to the extent observable inputs are not available (including each Fund’s own assumptions used in determining the fair value of investments).

The summary of inputs used to value each Fund’s net assets as of June 30, 2016 is as follows:

 

    Value Inputs  
Real Estate Fund   LEVEL 1     LEVEL 2     LEVEL 3     Total  

Investment Securities:

        

Common Stocks

   $ 112,502,908      $ —      $ —      $ 112,502,908   

Preferred Stocks

     2,606,075        —        —        2,606,075   

Municipal Bonds

     —        576,172        —        576,172   

Money Market

     240,862        —        —        240,862   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Investment Securities

     115,349,845        576,172        —        115,926,017   
 

 

 

    

 

 

    

 

 

    

 

 

  

Other Financial Instruments (a)

        

Written Options

     (3,900 )      —        —        (3,900 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Investments

     115,345,945        576,172        —        115,922,117   
 

 

 

    

 

 

    

 

 

    

 

 

  
Value Fund                        

Investment Securities:

        

Common Stocks

     67,167,990        —        —        67,167,990   

Preferred Stocks

     3,726,559        —        —        3,726,559   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Investment Securities

     70,894,549        —        —        70,894,549   
 

 

 

    

 

 

    

 

 

    

 

 

  

Other Financial Instruments (a)

        

Written Options

     (950 )      —        —        (950 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Investments

     70,893,599        —        —        70,893,599   
 

 

 

    

 

 

    

 

 

    

 

 

  
Municipal Fund                        

Investment Securities:

        

Municipal Bonds

     —        110,747,869        —        110,747,869   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Investments

     —        110,747,869        —        110,747,869   
 

 

 

    

 

 

    

 

 

    

 

 

  

 

    81   

NOTES TO FINANCIAL STATEMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

    Value Inputs  
Income Fund   LEVEL 1     LEVEL 2     LEVEL 3     Total  

Investment Securities:

        

Collateralized Mortgage Obligations

   $ —      $ 324,828      $ —      $ 324,828   

Municipal Bonds

     —        169,344,919        —        169,344,919   

Common Stocks

     12,086,473        —        —        12,086,473   

Corporate Bonds

     —        17,408,045        —        17,408,045   

Preferred Stocks

     21,889,939        —        —        21,889,939   

Money Market

     1,835,539        —        —        1,835,539   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Investments

     35,811,951        187,077,792        —        222,889,743   
 

 

 

    

 

 

    

 

 

    

 

 

  
Opportunity Fund                        

Investment Securities:

        

Municipal Bonds

     —        22,795,057        —        22,795,057   

Preferred Stocks

     11,249,634        —        —        11,249,634   

Common Stocks

     20,594,594        —        —        20,594,594   

Corporate Bonds

     —        3,014,397        —        3,014,397   

Money Market

     53,435        —        —        53,435   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Investments

     31,897,663        25,809,454        —        57,707,117   
 

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Other Financial Instruments are derivative instruments not reflected on the Schedules of Investments, such as written option contracts.

The Funds did not have any transfers between levels as of June 30, 2016. The Funds recognizes transfers between fair value hierarchy levels at the end of the reporting period. The Funds did not hold any investments at any time during the reporting period in which significant unobservable inputs were used in determining fair value; therefore, no reconciliation of Level 3 securities is included for this reporting period.

C. Investment Income and Securities Transactions: Security transactions are accounted for on the date the securities are purchased or sold (trade date). Cost is determined and gains and losses are based on the identified cost basis for both financial statement and federal income tax purposes. Dividend income and distributions to shareholders are reported on the ex-dividend date. Interest income and expenses are accrued daily.

D. Federal Income Taxes: The Funds intend to comply with all requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

E. Use of Estimates: In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

F. Distributions to Shareholders: The Funds intend to distribute substantially all of its net investment income and capital gains to shareholders each year. For the Real Estate Fund and the Value Fund, income distributions will be paid quarterly. For the Income Fund, Municipal Fund and the Opportunity Fund, income distributions will typically be declared daily and paid monthly. Capital gains, if any, for all the Funds, will be distributed annually in December, but may be distributed more frequently if deemed advisable by the Board. All such distributions are taxable to the shareholders whether received in cash or reinvested in shares.

The Real Estate Fund, Value Fund and Opportunity Fund have made certain investments in REITs which pay distributions to their shareholders based upon available funds from operations. Each REIT reports annually the tax character of its distributions. It is quite common for these distributions to exceed the REIT’s taxable earnings and profits resulting in the excess portion of such distributions being designated as a return of capital or long-term capital gain. The Funds intend to include the gross distributions from such REITs in its distributions to its shareholders; accordingly, a portion of the distributions paid to the Funds and subsequently distributed to shareholders may be re-characterized. The final determination of the amount of each Fund’s return of capital distribution for the period will be made after the end of each calendar year.

G. Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets

 

82            SPIRIT OF AMERICA

NOTES TO FINANCIAL STATEMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class.

Note 3 – Purchases and Sales of Securities

Purchases and proceeds from the sales of securities for the period ended June 30, 2016, excluding short-term investments, were as follows:

 

Fund   Purchases     Sales  

Real Estate Fund

   $ 6,059,781      $ 14,229,711   

Value Fund

     7,362,064        8,854,062   

Municipal Fund

     9,866,559        4,233,385   

Income Fund

     19,454,013        5,091,618   

Opportunity Fund

     8,971,833        5,302,924   

There were no purchases or sales of long term U.S. Government Obligations during the period ended June 30, 2016.

Note 4 – Investment Management Fee and Other Transactions with Affiliates

Spirit of America Management Corp. (the “Adviser”) has been retained to act as the Company’s investment adviser pursuant to an Investment Advisory Agreement (the “Advisory Agreement”). The Adviser was incorporated in 1997 and is a registered investment adviser under the Investment Advisers Act of 1940, as amended. The Adviser, under the terms of the Advisory Agreement with respect to each Fund, manages the Funds’ investments. As compensation for its management services, each Fund is obligated to pay the Adviser a fee based on each Fund’s average daily net assets as follows:

 

Fund   Fee Rate     Advisory
Fees Earned		  

Real Estate Fund

     0.97 %    $ 536,962   

Value Fund

     0.97 %      335,880   

Municipal Fund

     0.60 %      318,101   

Income Fund

     0.60 %      628,727   

Opportunity Fund

     0.65 %      173,212   

The Adviser has contractually agreed to waive advisory fees and/or reimburse expenses for the following Funds (based on average daily net assets) through April 30, 2017 so that the total operating expenses will not exceed the amounts presented in the table below. The waiver does not include, front end or contingent deferred loads, taxes, interest, dividend expenses, brokerage commissions or expenses incurred in connection with any merger, reorganization, or extraordinary expenses such as litigation. Additionally, for the period ended June 30, 2016, the Adviser waived advisory fees, or reimbursed expenses as indicated:

 

Fund   Class A     Class C     Fees
Recouped
(Waived)		  

Municipal Fund

     0.90 %      1.75 %    $ (77,783 ) 

Income Fund

     1.10 %      1.85 %      (17,432 ) 

Opportunity Fund

     1.25 %      2.00 %      460   

Any amounts waived or reimbursed by the Adviser are subject to reimbursement by a Fund within the following three years, provided the Fund is able to make such reimbursement and remain in compliance with the expense limitation as stated above. The balance of recoverable expenses to the Adviser as of June 30, 2016, along with their expiration dates is shown below:

 

    Recoupment expires December 31,  
Fund   2016     2017     2018     2019     Total  

Municipal Fund

   $ 301,815      $ 210,870      $ 203,144      $ 77,783      $ 793,612   

Income Fund

     230,568        97,584        98,192        17,432        443,776   

Opportunity Fund

     27,465        59,659        15,173        —        102,297   

 

    83   

NOTES TO FINANCIAL STATEMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

The Funds’ Class A and Class C Shares have adopted a plan of distribution pursuant to Rule 12b-1 (the “Plan”). The Plan permits each Fund’s Class A and Class C Shares to pay David Lerner Associates, Inc. (the “Distributor”) an annual fee, accrued daily and paid monthly based on each Class of each Fund’s average daily net assets for the Distributor’s services and expenses in distributing shares of each Fund and providing personal services and/or maintaining shareholder accounts. For the period ended June 30, 2016, the annual fee rate and the fees paid to the Distributor under the Plan were as follows:

 

    Class A     Class C  
Fund   Annual Rate     Fees Paid     Annual Rate     Fees Paid (a)  

Real Estate Fund

     0.30 %    $ 166,070        1.00 %    $ 3   

Value Fund

     0.30 %      103,875        1.00 %      17   

Municipal Fund

     0.15 %      79,526        1.00 %      3   

Income Fund

     0.25 %      261,930        1.00 %      161   

Opportunity Fund

     0.25 %      66,597        1.00 %      94   

 

(a) For the period March 15, 2016 (commencement of operations) through June 30, 2016.

Each Fund’s Class A Shares are subject to an initial sales charge imposed at the time of purchase, in accordance with the Fund’s current prospectus. A contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on redemptions of $1 million or more made within one year of purchase. Class C Shares are sold without an initial front-end sales charge, however, a CDSC of 1.00% may be charged on redemptions made within 13 months of purchase. For the period ended June 30, 2016, sales charges received by the Distributor from each of the Funds were as follows:

 

Fund   Sales Charges
Received by
Distributor		  

Real Estate Fund

   $ 124,746   

Value Fund

     180,023   

Municipal Fund

     521,629   

Income Fund

     1,119,557   

Opportunity Fund

     321,395   

Certain Officers and Directors of the Company are “affiliated persons”, as that term is defined in the 1940 Act, of the Adviser or the Distributor. Each Director of the Company, who is not an affiliated person of the Adviser or Distributor, receives a quarterly retainer of $5,250, $1,000 for each Board meeting attended and $500 for each committee meeting attended plus reimbursement for certain travel and other out-of-pocket expenses incurred in connection with attending Board meetings. The Company does not compensate the Officers for the services they provide. There are no Directors’ fees paid to Interested Directors of the Company. For the period ended June 30, 2016, the Funds were allocated $7,752 of the Chief Compliance Officer’s salary.

Note 5 – Concentration and Other Risks

The performance of the Income Fund, Municipal Fund and Opportunity Fund could be adversely affected by interest rate risk, which is the possibility that overall bond prices will decline because of rising interest rates. Interest rate risk is expected to be high for the Funds because it invests mainly in long-term bonds, whose prices are much more sensitive to interest fluctuations than are the prices of short-term bonds.

The Income Fund, Municipal Fund and Opportunity Fund may be affected by credit risk, which is the possibility that the issuer of a bond will fail to pay interest and principal in a timely manner, or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. This risk may be greater to the extent that the Funds may invest in junk bonds.

The Income Fund, Municipal Fund and Opportunity Fund may be affected by credit risk of lower grade securities, which is the possibility that taxable fixed income or municipal securities rated below investment grade, or unrated of similar quality, (frequently called “junk bonds”), may be subject to greater price fluctuations and risks of loss of income and principal than investment-grade taxable fixed income or municipal securities. Securities that are (or that have fallen) below investment-grade have a greater risk that the issuers may not meet their debt obligations. These types of securities are generally considered speculative in relation to the issuer’s ongoing ability to make principal and interest payments. During periods of rising interest rates or economic downturn, the trading market for these securities may not be active and may reduce the Fund’s ability to sell these securities at an acceptable price. If the issuer of securities is in default in payment of interest or principal, the Fund may lose its entire investment in those securities.

 

84            SPIRIT OF AMERICA

NOTES TO FINANCIAL STATEMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

The Opportunity Fund is non-diversified such that the Fund may invest a larger percentage of its assets in a given security than a diversified fund.

The Real Estate Fund invests primarily in real estate related securities. A fund that concentrates its investments among fewer sectors is subject to greater risk of loss than a fund that has a more sector diversification. Investments in real estate and real estate-related equity securities involve risks different from, and in certain cases greater than, the risks presented by equity securities generally. The main risks are those presented by direct ownership of real estate or real estate industry securities, including possible declines in the value of real estate, environmental problems and changes in interest rates. To the extent that assets underlying the Fund’s investments are concentrated geographically, by property type or in certain other respects, the Fund may be subject to these risks to a greater extent. The stocks purchased by the Fund may not appreciate in value as the Adviser anticipates. In addition, if the Fund receives rental income or income from the disposition of real property acquired as a result of a default on securities the Fund owns, its ability to retain its tax status as a regulated investment company may be adversely affected.

Other risks to the Funds may include income risk, liquidity risk, prepayment risk on collateralized mortgage obligations, municipal project specific risk, municipal lease obligation risk, zero coupon securities risk, market risk, manager risk, taxability risk, state-specific risk and exchange traded funds risk.

Note 6 – Restricted Securities

Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer’s expense, either upon demand by the Funds or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid. The Funds will not incur any registration costs upon such resale. The Funds’ restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined by the Board. At June 30, 2016, the Income Fund held illiquid restricted securities representing 1% of net assets, as listed below:

 

Issuer Description    Acquisition
Date		      Principal
Amount		      Cost      Value  
Corporate Bonds            

Exelon Generation Co. LLC, 5.60%, 06/15/42

      7/12/2012       $ 400,000       $ 421,643       $ 421,008   

MetLife Capital Trust X, 9.25%, 04/08/38

      6/4/2013       $ 1,500,000       $ 2,112,698       $ 2,062,219   

Note 7 – Federal Income Taxes

The tax character of distributions paid by each of the Funds for the year ended December 31, 2015, was as follows:

 

Fund   Ordinary Income     Tax Exempt Income     Net Long-Term
Capital Gains		     Return of
Capital		     Total
Distributions		  

Real Estate Fund

   $ 651,144      $ —      $ 9,154,195      $ —      $ 9,805,339   

Value Fund

     352,126        —        1,909,115        —        2,261,241   

Municipal Fund

     26,383        3,580,642        —        —        3,607,025   

Income Fund

     8,752,009        —        —        773,014        9,525,023   

Opportunity Fund

     1,244,119        —        —        800,789        2,044,908   

Distribution classifications may differ from the Statements of Changes in Net Assets as a result of the treatment of short-term capital gains as ordinary income for tax purposes.

The adjusted cost basis of investment and gross unrealized appreciation and depreciation of investments for federal income tax purposes for each of the Funds as of June 30, 2016, were as follows:

 

Fund   Gross Unrealized
Appreciation		     Gross Unrealized
Depreciation		     Net Unrealized
Appreciation/
(Depreciation)(a)		     Cost Basis of
Investments		  

Real Estate Fund

   $ 41,698,354      $ (4,261,467 )    $ 37,436,887      $ 78,485,230   

Value Fund

     26,251,684        (514,929 )      25,736,755        45,156,844   

Municipal Fund

     9,335,520        (524,045 )      8,811,475        101,936,394   

Income Fund

     26,072,382        (2,807,387 )      23,264,995        199,624,748   

Opportunity Fund

     5,906,293        (989,082 )      4,917,211        52,789,906   

 

(a) The difference between book-basis and tax-basis net unrealized appreciation/(depreciation) is primarily due to wash sales, tax treatment of Trust Preferred securities and partnership investments.

 

    85   

NOTES TO FINANCIAL STATEMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

At December 31, 2015, the components of accumulated distributable earnings for each Fund on a tax basis were as follows:

 

Fund   Undistributed Long-
Term Capital Gains		     Accumulated
Capital and Other
Losses		     Unrealized
Appreciation
(Depreciation)		     Total
Accumulated
Earnings
(Losses)		  

Real Estate Fund

   $ 4,145,105      $ (137,111 )    $ 30,590,460      $ 34,598,454   

Value Fund

     536,552        (49,558 )      25,116,883        25,603,877   

Municipal Fund

     —        (8,683,877 )      5,296,721        (3,387,156 ) 

Income Fund

     —        (3,276,516 )      8,366,105        5,089,589   

Opportunity Fund

     —        (1,698,408 )      (2,688,875 )      (4,387,283 ) 

At December 31, 2015, for federal income tax purposes and the treatment of distributions payable, the following Funds had capital loss carryforwards available to offset future gains, if any, to the extent provided by the Treasury regulations:

 

    Expires December 31,     No Expiration        
Fund   2017     Short-Term     Long-Term     Total  

Municipal Fund

   $ 522,821      $ 2,453,547      $ 5,707,509      $ 8,683,877   

Income Fund

     —        1,559,189        1,246,148        2,805,337   

Opportunity Fund

     —        793,691        99,223        892,914   

Certain capital and qualified late year losses incurred after October 31 and within the current taxable year are deemed to arise on the first business day of the Funds’ following taxable year. For the tax year ended December 31, 2015, the following Funds deferred post October capital and late year ordinary losses as follows:

 

Fund   Post-October Losses  

Real Estate Fund

   $ 137,111   

Value Fund

     49,558   

Income Fund

     145,442   

Opportunity Fund

     701,403   

Management of the Funds have reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last three tax year ends and the interim tax period since then). Management believes there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

Note 8 – Line of Credit

The Funds participate in a short-term credit agreement (“Line of Credit) with The Huntington National Bank, the custodian of the Fund’s investments, expiring on May 24, 2017. Borrowing under this agreement bear interest at London Interbank Offered Rate (“LIBOR”) plus 1.500%. Maximum borrowings for each Fund is the lesser of $3,000,000 or 10% of the Fund’s daily market value. During the period ended June 30, 2016, each Fund’s borrowing activity was as follows:

 

    Real Estate Fund     Value Fund     Municipal Fund     Income Fund     Opportunity
Fund		  

Total bank line of credit as of June 30, 2016

   $ 3,000,000      $ 2,921,212      $ 2,615,936      $ 3,000,000      $ 3,000,000   

Average borrowings during year

   $ 100,633      $ 160,296      $ 71,221      $ —      $ 145,217   

Number of days outstanding*

     45        6        21        —        5   

Average interest rate during year

     1.936 %      1.936 %      1.936 %      1.936 %      1.936 % 

Highest balance drawn during year

   $ 307,632      $ 256,655      $ 634,522      $ —      $ 242,479   

Highest balance interest rate

     1.954 %      1.954 %      1.954 %      1.954 %      1.954 % 

Interest expense incurred

   $ 1,138      $ 51      $ 169      $ —      $ 7   

Interest rate at June 30, 2016

     1.949 %      1.949 %      1.949 %      1.949 %      1.949 % 

 

* Number of days outstanding represents the total days during the period ended June 30, 2016 that each Fund utilized the line of credit.

Note 9 – Other Matters

On May 7, 2010, each of William Mason, the Portfolio Manager for the Energy Fund, and DLA, the Fund’s principal underwriter and distributor, received a Notice of Complaint from the Department of Enforcement of the Financial Industry

 

86            SPIRIT OF AMERICA

NOTES TO FINANCIAL STATEMENTS (CONT.)    JUNE 30, 2016 (UNAUDITED)

 

Regulatory Authority (“FINRA”) relating to Mr. Mason’s activities as head of the fixed income trading department of DLA and DLA’s activities as a municipal securities and collateralized mortgage obligations dealer. The Notice of Complaint alleged that each of Mr. Mason and DLA had violated certain NASD and Municipal Securities Rule Making Board fair pricing rules relating to the period January 1, 2005 through January 31, 2007. On April 4, 2012, a FINRA hearing panel issued a decision in this matter, finding that DLA willfully charged excessive markups on certain municipal bond and CMO transactions involving customers, and assessed monetary fines and other sanctions against DLA and Mr. Mason, including the suspension described below. Both DLA and Mr. Mason appealed the decision. On May 27, 2011, FINRA filed a complaint against DLA, the Fund’s principal underwriter and distributor, related to its sales practices in connection with its role as managing dealer of an unaffiliated Real Estate Investment Trust offering, Apple REIT Ten, Inc. (“Apple REIT”). More specifically, FINRA alleged that DLA failed to conduct adequate due diligence, thereby leaving it without a reasonable basis for recommending customer purchases of Apple REIT, in addition to using false, exaggerated and misleading statements regarding the performance of earlier closed Apple REITs. In June 2011, several class action complaints were filed against DLA, Apple REIT entities and certain individuals, also in connection with the sale of various Apple REIT securities. In January 2012, FINRA amended its complaint to add David Lerner as an individual respondent and alleged violations of Section 17(a) of the Securities Act of 1933, as amended, including allegations of false, exaggerated and misleading communications to the public, through customer correspondence and investment seminars, about the investment returns, market values, performance of earlier closed Apple REITs as well as allegations of untrue statements and/or omitted material facts concerning the prior performance, steady distribution rates, unchanging valuations, and prospects of the earlier closed Apple REITs and/or Apple REIT. On October 22, 2012, DLA, Mr. Lerner and Mr. Mason settled all of the foregoing FINRA investigations and actions involving Apple REIT securities and municipal bond and collateralized mortgage obligation pricing. Without admitting or denying the allegations, in connection with the settlement, DLA, Mr. Lerner and Mr. Mason each agreed, among other things, to pay a fine; and Mr. Lerner agreed to a suspension from affiliation with any FINRA member, including DLA, in any capacity for a period of one year and in any principal capacity for a period of two years thereafter beginning on November 19, 2012; and Mr. Mason agreed to a suspension from affiliation with any FINRA member, including DLA, in any capacity for a period of six months, which suspension ended on June 16, 2013. The fines and suspensions do not involve the Funds or the Adviser. On April 3, 2013, the class action complaints were dismissed, with prejudice, in their entirety. On April 12, 2013, plaintiffs filed a notice of appeal of the class action dismissal. On April 23, 2014, the United States Court of Appeals for the Second Circuit substantially affirmed the April 3, 2013 decision of United States District Judge, Kiyo A. Matsumoto, dismissing with prejudice the class action complaint in In Re Apple REITs Litigation. The Second Circuit held that Judge Matsumoto correctly found that there were no material misrepresentations or omissions in the offering materials for Apple REITs Six through Ten. The appeals court upheld dismissal of ten of the thirteen claims in the case, including all federal and state securities law claims, and also upheld Judge Matsumoto’s refusal to allow plaintiffs to amend their complaint. The appeals court remanded three state common law claims to the District Court for the Eastern District of New York for further proceedings. On March 25, 2015, the District Court dismissed the remaining state common law claims against DLA, with prejudice. Plaintiffs did not file an appeal. Neither the Adviser nor the Funds were a party to any of the investigations or actions listed in this section.

In October 2013, a class action litigation, titled Lewis v. Delaware Charter Guarantee & Trust Company, et al., (the “Litigation”) was commenced in federal court in Nevada against DLA, the Fund’s principal underwriter and distributor, along with other defendants, alleging, inter alia, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, negligence and misrepresentation. The plaintiffs, purportedly customers who maintain individual retirement accounts at DLA which contained non-traded REIT securities, allege, among other things, that the defendants failed to accurately provide annual fair market values for those REIT securities. The Litigation was transferred to the U.S. District Court for the Eastern District of New York. On March 30, 2015, the District Court dismissed all claims against DLA, with prejudice. Plaintiffs appealed the decision dismissing the claims. On April 4, 2016, the United States Court of Appeals for the Second Circuit unanimously affirmed the judgment of the District Court dismissing the claims against DLA. Plaintiffs did not appeal that dismissal. Neither the Adviser nor the Fund were parties to the Litigation.

Note 10 – Subsequent Events

Management has evaluated the impact of all subsequent events on the Funds and has determined that there were no events that require recognition or disclosure in the financial statements.

 

    87   

 

Proxy Voting Information

The Company’s Statement of Additional Information (“SAI”) containing a description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities, along with the Company’s proxy voting record relating to portfolio securities held during the 12-month period ended June 30 are available (i) without charge, upon request, by calling (516) 390-5565; and (ii) on the SEC’s website at http://www.sec.gov.

Information on Form N-Q

The Company will file its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q within sixty days after the end of the period. The Company’s Forms N-Q will be available on the SEC’s website at http://www.sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0030.

Investment Adviser

Spirit of America Management Corp.

477 Jericho Turnpike

P.O. Box 9006

Syosset, NY 11791-9006

Distributor

David Lerner Associates, Inc.

477 Jericho Turnpike

P.O. Box 9006

Syosset, NY 11791-9006

Shareholder Services

Ultimus Asset Services, LLC

225 Pictoria Drive, Suite 450

Cincinnati, OH 45246

Custodian

The Huntington National Bank

41 S. High Street

Columbus, OH 43215

Independent Registered Public Accounting Firm

Tait Weller & Baker LLP

1818 Market Street, Suite 2400

Philadelphia, PA 19103

Counsel

Blank Rome LLP

405 Lexington Avenue

New York, NY 10174

 

LOGO

For additional information about the Funds, call (800) 452-4892 or (610) 382-7819. This report is submitted for the general information of the shareholders of the Funds. It is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by an effective Prospectus which includes details regarding the Fund’s objectives, risks, policies, expenses, and other information.

©Copyright 2016 Spirit of America        SOAEN-SAR16

Item 2. Code of Ethics. NOT APPLICABLE – disclosed with annual report

Item 3. Audit Committee Financial Expert. NOT APPLICABLE – disclosed with annual report

Item 4. Principle Accountant Fees and Services. NOT APPLICABLE – disclosed with annual report

Item 5. Audit Committee of Listed Companies. NOT APPLICABLE – applies to listed companies only

Item 6. Schedule of Investments. Schedule filed with Item 1.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. NOT APPLICABLE – applies to closed-end funds only

Item 8. Portfolio Managers of Closed-End Investment Companies. NOT APPLICABLE – applies to closed-end funds only

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. NOT APPLICABLE – applies to closed-end funds only

Item 10. Submission of Matters to a Vote of Security Holders.

NOT APPLICABLE

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 Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-2 under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing of this report on Form N-CSR.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Not Applicable – filed with annual report

(a)(2) Certifications pursuant to Rule 30a-2(a) are attached hereto.

(a)(3) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) are furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)   Spirit of America Investment Fund, Inc.

 

By (Signature and Title)  

/s/ David Lerner

  
  David Lerner, Principal Executive Officer  

 

Date  

8/24/16

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)  

/s/ David Lerner

  
  David Lerner, Principal Executive Officer  

 

Date  

8/24/16

 

By (Signature and Title)  

/s/ Alan P. Chodosh

  
  Alan P. Chodosh, Principal Financial Officer  

 

Date  

8/24/16