N-CSR 1 soa_ncsr.htm N-CSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

 

Investment Company Act file number : 811-08231

 

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: December 31, 2022

 

 

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.

 

(a) 

 

   
(SPIRIT OF AMERICA LOGO)  
   
ANNUAL REPORT  
December 31, 2022  
   
   
   
   
   
  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 & 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 Annual Report for the Spirit of America Real Estate Income and Growth Fund. This includes a review of our performance in 2022, 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 and analysts 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 seek enduring value in the physical structures of America by investing in real estate companies which own data centers, industrial warehouses, 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,

 

(PHOTO OF DAVID LERNER) (-s-David Lerner)

David Lerner

President

Spirit of America Investment Fund, Inc.

(PHOTO OF DOUG REVELLO)

(-s-Doug Revello)

Doug Revello

Portfolio Manager

 

  1

 

 

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)
 

Economic Summary

 

At the end of December, the U.S. Bureau of Economic Analysis released its final reading of the third quarter 2022 gross domestic product (GDP), to show an increase in the annual growth rate of 3.2%, higher than previous estimates, at least temporarily easing recession fears. GDP, a sum of all goods and services, unexpectedly rose from the previously reported 2.9%. The stronger than previously estimated growth in the third quarter GDP follows consecutive negative quarters to start the year, meeting a commonly accepted definition of a recession. The growth in the third quarter came in large part due to a narrowing trade deficit, which economists expected and consider to be a one-off occurrence that won’t be repeated in future quarters. Consumer spending as measured through personal consumption expenditures increased at just a 1.4% pace in the quarter, down from 2% in the second quarter. Gross private domestic investment fell 8.5%, continuing a trend after falling 14.1% in the second quarter. Residential investment, a gauge of homebuilding, tumbled 26.4% after falling 17.8% in the second quarter, reflecting a sharp slowdown in the real estate market. On the plus side, exports, which add to GDP, rose 14.4%, while imports, which subtract, dropped 6.9%. There was some good news on the inflation front. The chain-weighted price index, a cost-of-living measure that adjusts for consumer behavior, rose 4.1% for the quarter, well below the Dow Jones estimates for a 5.3% gain, due in large part to falling energy prices. Also, the personal consumption expenditures price index, a key inflation measure for the Federal Reserve, increased 4.2%, down sharply from 7.3% in the prior quarter.

 

Job growth decelerated in December but was still better than expected, a sign that labor market remains strong even as the Federal Reserve tries to slow economic growth. Nonfarm payrolls increased by 223,000 for the month, above the Dow Jones estimate for 200,000, while the unemployment rate fell to 3.5%. The job growth marked a decrease from the 256,000 gain in November, which was revised down 7,000 from the initial estimate. Wage growth was less than expected in an indication that inflation pressures could be weakening. By sector, leisure and hospitality led with 67,000 added jobs. The relative strength in job growth comes despite repeated efforts by the Federal Reserve to slow the economy, the labor market in particular. The central bank raised its benchmark interest rate seven times in 2022 for a total of 4.25 percentage points, with more increases likely on the way.

 

During its December meeting, The Federal Open Market Committee (FOMC) raised its benchmark interest rate to its highest level in 15 years, indicating the fight against inflation is not over despite some promising signs lately. Keeping with expectations, the rate setting FOMC voted to boost the overnight borrowing rate half a percentage point, taking it to a targeted range between 4.25% and 4.5%. The increase broke a string of four straight three-quarter point hikes, the most aggressive policy moves since the early 1980s. Along with the increase came an indication that officials expect to keep rates higher through next year, with no reductions until 2024. Fed officials believe raising rates helps take money out of the economy, reducing demand and ultimately pulling prices lower after inflation spiked to its highest level in more than 40 years. During a news conference, Chairman Jerome Powell said it was important to keep up the fight against inflation so that the expectation of higher prices does not become entrenched.

 

The new level marks the highest the fed funds rate has been since December 2007, just ahead of the global financial crisis and as the Federal Reserve was loosening policy aggressively to combat what would turn into the worst economic downturn since the Great Depression. Members penciled in increases for the funds rate until it hits a median level of 5.1% next year, equivalent to a target range of 5-5.25%. The FOMC lowered its growth targets for 2023, putting expected GDP gains at just 0.5%, barely above what would be considered a recession.

 

Market Commentary

 

In 2022 the FTSE Nareit All Equity REITs Index delivered a total return of (24.95)% In an extremely challenging year for the markets, the leading REIT sector was the Diversified Sector which finished with a (9.02)% for the year. This sector is comprised of REITS that are able to own and manage a mix of property types while collecting rent from these tenants. Having that broad exposure was able to help alleviate the market losses for properties in that sector. It has been a difficult year for REITs and stocks in general as interest rates continue to rise. REITs fundamentally borrow money to buy properties and charge rents and as rates rise thus weakening the economy it makes those properties more expensive while also limiting the ability of Americans to pay rent.

 

On March 11, 2020, the World Health Organization announced that it had made the assessment that COVID-19 can be characterized as a pandemic. The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets

 

2 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)
 

in ways that cannot necessarily be foreseen. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty.

 

Fund Summary

 

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

 

As of December 31, 2022 the Fund was invested over 95% in REITs. A REIT, or Real Estate Investment Trust, 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 one year return of (27.36)% (no load, gross of fees). This compares to the (24.51)% returned by its benchmark, the MSCI US REIT Index, for the same period. That result does not take the sales charge and expense ratio into account.

 

The material factors that affected the Fund were market direction and security selection. The Funds underperformance was primarily due to the REIT market that was hit hard with rising interest rates and the world readjusting to post pandemic living. The Fund was overweight in the Industrial sector as compared to its MSCI US REIT benchmark. That was one of the worst performing sectors in the REITs market, with Industrial having a total return of (37.22)% for the Fund compared to (28.99)% return in the benchmark. The Fund did not rely on derivatives or leverage strategies.

 

The value of the Fund and the securities in which the Fund invests may be adversely affected by impacts caused by COVID-19 and other epidemics and pandemics that may arise in the future.

 

Including sales charge and expenses, as of December 31, 2022 the Fund’s one year return was (32.22)%. The annualized five year return was 1.72% per year, while the average annual return over the past ten years was 4.89%.

 

  3

 

 

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Summary of Portfolio Holdings (Unaudited)
As of December 31, 2022
Residential REITs   21.71%  $19,623,634 
Industrial REITs   17.76%   16,067,991 
Retail REITs   12.91%   11,681,499 
Self-Storage REITs   9.37%   8,474,845 
Data Center REITs   8.12%   7,341,117 
Gaming REITs   5.29%   4,787,892 
Health Care REITs   4.29%   3,879,773 
Infrastructure REITs   3.92%   3,542,801 
Hotel REITs   3.64%   3,295,766 
Office REITs   3.63%   3,286,559 
Multi Asset Class REITs   3.20%   2,895,226 
Energy   2.55%   2,307,936 
Specialty REITs   1.39%   1,258,324 
Mortage Finance   1.23%   1,108,979 
Midstream - Oil & Gas   0.32%   292,247 
Financials   0.27%   244,827 
Municipal Bonds   0.17%   150,992 
Money Market Funds   0.12%   109,524 
Timber REITs   0.11%   102,300 
Total Investments   100.00%  $90,452,232 

 

4 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Average Annual Returns (Unaudited)
For the periods ended December 31, 2022
  1 Year 5 Year 10 Year Expense Ratios4
Class A Shares - with load (32.22)% 1.72% 4.89% 1.52%
Class A Shares - no load (28.46)% 2.83% 5.46% 1.52%
Class C Shares - with load1 (29.64)% 2.11% 4.71% 2.22%
Class C Shares - no load1 (28.98)% 2.11% 4.71% 2.22%
Institutional Shares2 (28.26)% 3.15% 5.78% 1.22%
MSCI US REIT Index3 (24.51)% 3.69% 6.48%  
         

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.

 

1Class 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.

 

2Institutional Shares commenced operations on May 1, 2020. Prior to May 1, 2020, performance is based on the performance of Class A Shares.

 

3The 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.

 

4Reflects the expense ratio as disclosed in the Fund’s prospectus dated May 1, 2022. Additional information pertaining to the Fund’s expense ratios as of December 31, 2022, can be found in the Financial Highlights tables.

 

Fixed Distribution Policy (Unaudited)
 

The Board of Directors of the Fund has set a fixed distribution policy whereby the Fund will declare semi-annual distributions comprised of income earned, if any, realized long-term capital gains, if any, and to the extent necessary, return of capital, payable as of June 30 and December 31 of each year in the annual aggregate minimum amount of $0.85 per share. Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of these distributions. The Fund’s total return based on net asset value is presented in the table above as well as in the Financial Highlights tables.

 

  5

 

 

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND
MANAGEMENT DISCUSSION (UNAUDITED)

 

Growth of $10,000 (Unaudited)
(includes one-time 5.25% maximum sales charge and reinvestment of all distributions)

 

(LINE GRAPH)

 

The chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years.

 

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call (800) 452-4892.

 

6 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA LARGE CAP VALUE FUND
MANAGEMENT DISCUSSION (UNAUDITED)
 

Dear Shareholder,

 

We welcome this opportunity to share with you, our investors, the 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 and analysts 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 attractive valuations will help enhance the long-term returns of the Spirit of America Large Cap Value Fund.

 

The Spirit of America Large Cap Value Fund’s investment philosophy continues to be to focus on the large cap value segment of the U.S. equity market. Among the valuation factors used to evaluate these stocks are companies with lower debt ratios than their peer group and companies that are undervalued versus the company’s intrinsic worth and future income potential.

 

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

 

Sincerely,

 

(PHOTO OF DAVID LERNER) (-s-David Lerner)

David Lerner

President

Spirit of America Investment Fund, Inc.

(PHOTO OF DOUG REVELLO)

(-s-Doug Revello)

Doug Revello

Portfolio Manager

 

  7

 

 

SPIRIT OF AMERICA LARGE CAP VALUE FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)
 

Economic Summary

 

At the end of December, the U.S. Bureau of Economic Analysis released its final reading of the third quarter 2022 gross domestic product (GDP), to show an increase in the annual growth rate of 3.2%, higher than previous estimates, at least temporarily easing recession fears. GDP, a sum of all goods and services, unexpectedly rose from the previously reported 2.9%. The stronger than previously estimated growth in the third quarter GDP follows consecutive negative quarters to start the year, meeting a commonly accepted definition of a recession. The growth in the third quarter came in large part due to a narrowing trade deficit, which economists expected and consider to be a one-off occurrence that won’t be repeated in future quarters. Consumer spending as measured through personal consumption expenditures increased at just a 1.4% pace in the quarter, down from 2% in the second quarter. Gross private domestic investment fell 8.5%, continuing a trend after falling 14.1% in the second quarter. Residential investment, a gauge of homebuilding, tumbled 26.4% after falling 17.8% in the second quarter, reflecting a sharp slowdown in the real estate market. On the plus side, exports, which add to GDP, rose 14.4%, while imports, which subtract, dropped 6.9%. There was some good news on the inflation front. The chain-weighted price index, a cost-of-living measure that adjusts for consumer behavior, rose 4.1% for the quarter, well below the Dow Jones estimates for a 5.3% gain, due in large part to falling energy prices. Also, the personal consumption expenditures price index, a key inflation measure for the Federal Reserve, increased 4.2%, down sharply from 7.3% in the prior quarter.

 

Job growth decelerated in December but was still better than expected, a sign that labor market remains strong even as the Federal Reserve tries to slow economic growth. Nonfarm payrolls increased by 223,000 for the month, above the Dow Jones estimate for 200,000, while the unemployment rate fell to 3.5%. The job growth marked a decrease from the 256,000 gain in November, which was revised down 7,000 from the initial estimate. Wage growth was less than expected in an indication that inflation pressures could be weakening. By sector, leisure and hospitality led with 67,000 added jobs. The relative strength in job growth comes despite repeated efforts by the Federal Reserve to slow the economy, the labor market in particular. The central bank raised its benchmark interest rate seven times in 2022 for a total of 4.25 percentage points, with more increases likely on the way.

 

During its December meeting, The Federal Open Market Committee (FOMC) raised its benchmark interest rate to its highest level in 15 years, indicating the fight against inflation is not over despite some promising signs lately. Keeping with expectations, the rate setting FOMC voted to boost the overnight borrowing rate half a percentage point, taking it to a targeted range between 4.25% and 4.5%. The increase broke a string of four straight three-quarter point hikes, the most aggressive policy moves since the early 1980s. Along with the increase came an indication that officials expect to keep rates higher through next year, with no reductions until 2024. Fed officials believe raising rates helps take money out of the economy, reducing demand and ultimately pulling prices lower after inflation spiked to its highest level in more than 40 years. During a news conference, Chairman Jerome Powell said it was important to keep up the fight against inflation so that the expectation of higher prices does not become entrenched.

 

The new level marks the highest the fed funds rate has been since December 2007, just ahead of the global financial crisis and as the Federal Reserve was loosening policy aggressively to combat what would turn into the worst economic downturn since the Great Depression. Members penciled in increases for the funds rate until it hits a median level of 5.1% next year, equivalent to a target range of 5-5.25%. The FOMC lowered its growth targets for 2023, putting expected GDP gains at just 0.5%, barely above what would be considered a recession.

 

Market Commentary

 

When it came to market performance and investment returns in 2022 there was one clear, dominant force driving the markets and that was: inflation. We saw the highest inflation numbers in over 40 years which led to the Federal Reserve instituting an unprecedented series of interest rate hikes. These hikes were felt across both fixed income and equity markets. The Morningstar U.S. Market Index lost 19.4% in 2022, leaving the stock market with its biggest annual loss since 2008, when it lost 38.4%. Investor concerns about rising interest rates, slowing economic growth and persistently high inflation triggered sustained bouts of selling throughout 2022. Tech stocks and growth names in communication services were hit the hardest. These sectors were among the worst performing segments for 2022. Information technology stocks from the S&P 500 were down 27% for the year, while communications services stocks were down more than 30% in 2022. We now move to the more positive side of the ledger for 2022. Of the 11 sectors in the S&P 500, just one posted a positive return for the year and that was energy. Overall it was a rough year for the markets and investors alike.

 

8 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA LARGE CAP VALUE FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)
 

On March 11, 2020, the World Health Organization announced that it had made the assessment that COVID-19 can be characterized as a pandemic. The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty.

 

Fund Summary

 

The Spirit of America Large Cap Value Fund, SOAVX (the “Fund”), seeks to provide capital appreciation with a secondary objective of current income. The emphasis of the Fund is focused on investing in a diversified portfolio. We are invested in all 11 sectors on the S&P 500 Index.

 

The material factors that affected the Fund were market direction, stock selection, and the ongoing COVID-19 pandemic. The value of the Fund and the securities in which the Fund invests may be adversely affected by impacts caused by COVID-19 and other epidemics and pandemics that may arise in the future.

 

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 the experience of our dedicated team of professionals.

 

Return Summary

 

The Fund had a total return of (16.45)% (no load, gross of fees) in 2022. This compares to its benchmark, the S&P 500 Index, which was down (18.11)% for the year 2022.

 

The material factors that affected the Fund’s outperformance of its benchmark, the S&P 500 Index, were market direction and security selection. The Fund continues to invest with a value approach looking for companies with attractive valuations. The Fund outweighed the S&P by 8.18% in the Energy sector which was the only sector in the S&P 500 to finish the year in positive territory. Another reason for the Fund’s outperformance over the benchmark was the Consumer Discretionary sector ending the year with a total return down more than (30%) where the Fund was over five percent less concentrated in that segment than the S&P 500. This was due to the security selection and sector positioning within the Fund.

 

Including sales charge and expenses, as of December 31, 2022 the Fund’s one year return was (22.03)%. The annualized five year return was 6.79% per year, while the average annual return over the past ten years was 9.58%.

 

  9

 

 

SPIRIT OF AMERICA LARGE CAP VALUE FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Summary of Portfolio Holdings (Unaudited)
As of December 31, 2022
Technology   25.92%    $31,948,397 
Health Care   14.20%   17,508,905 
Energy   14.00%   17,256,273 
Industrials   10.98%   13,538,757 
Consumer Staples   9.29%   11,450,847 
Financials   8.73%   10,760,171 
Communications   4.94%   6,093,266 
Utilities   4.08%   5,028,846 
Consumer Discretionary   3.70%   4,557,326 
Real Estate Investment Trusts (REITs)   2.27%   2,799,078 
Materials   1.89%   2,335,342 
Total Investments   100.00%  $123,277,208 

 

Average Annual Returns (Unaudited)
For the periods ended December 31, 2022
  1 Year 5 Year 10 Year Expense Ratios4
Class A Shares - with load (22.03)% 6.79% 9.58% 1.50%
Class A Shares - no load (17.70)% 7.96% 10.18% 1.50%
Class C Shares - with load1 (19.04)% 7.20% 9.39% 2.20%
Class C Shares - no load1 (18.29)% 7.20% 9.39% 2.20%
Institutional Shares2 (17.48)% 8.28% 10.51% 1.20%
S&P 500 Index3 (18.11)% 9.42% 12.56%  
         

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.

 

1Class 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.

 

2Institutional Shares commenced operations on May 1, 2020. Prior to May 1, 2020, performance is based on the performance of Class A Shares.

 

3The 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.

 

4Reflects the expense ratio as disclosed in the Fund’s prospectus dated May 1, 2022. Additional information pertaining to the Fund’s expense ratios as of December 31, 2022, can be found in the Financial Highlights tables.

 

10 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA LARGE CAP VALUE FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)
 
Fixed Distribution Policy (Unaudited)

 

The Board of Directors of the Fund has set a fixed distribution policy whereby the Fund will declare semi-annual distributions comprised of income earned, if any, realized long-term capital gains, if any, and to the extent necessary, return of capital, payable as of June 30 and December 31 of each year in the annual aggregate minimum amount of $1.40 per share. Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of these distributions. The Fund’s total return based on net asset value is presented in the table on the prior page as well as in the Financial Highlights tables.

 

  11

 

 

SPIRIT OF AMERICA LARGE CAP VALUE FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Growth of $10,000 (Unaudited)
(includes one-time 5.25% maximum sales charge and reinvestment of all distributions)

 

(LINE GRAPH)

 

The chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years.

 

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call (800) 452-4892.

 

12 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND
MANAGEMENT DISCUSSION (UNAUDITED)
 

Dear Shareholder,

 

We are very pleased to provide the 2022 Annual report for the Spirit of America Municipal Tax Free Bond Fund. We look forward to continued inflows and further development of the Spirit of America Municipal Tax Free Bond Fund.

 

Our many years of experience in the municipal bond market have helped us to pursue a balance between yield and quality. 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 Spirit of America Municipal Tax Free Bond 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.

 

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,

 

(PHOTO OF DAVID LERNER) (-s-David Lerner)

David Lerner

President

Spirit of America Investment Fund, Inc.

(PHOTO OF DOUG REVELLO)

(-s-Doug Revello)

Mark Reilly

Portfolio Manager

 

  13

 

 

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)
 

Economic Summary

 

At the end of December, the U.S. Bureau of Economic Analysis released its final reading of the third quarter 2022 gross domestic product (GDP), to show an increase in the annual growth rate of 3.2%, higher than previous estimates, at least temporarily easing recession fears. GDP, a sum of all goods and services, unexpectedly rose from the previously reported 2.9%. The stronger than previously estimated growth in the third quarter GDP follows consecutive negative quarters to start the year, meeting a commonly accepted definition of a recession. The growth in the third quarter came in large part due to a narrowing trade deficit, which economists expected and consider to be a one-off occurrence that won’t be repeated in future quarters. Consumer spending as measured through personal consumption expenditures increased at just a 1.4% pace in the quarter, down from 2% in the second quarter. Gross private domestic investment fell 8.5%, continuing a trend after falling 14.1% in the second quarter. Residential investment, a gauge of homebuilding, tumbled 26.4% after falling 17.8% in the second quarter, reflecting a sharp slowdown in the real estate market. On the plus side, exports, which add to GDP, rose 14.4%, while imports, which subtract, dropped 6.9%. There was some good news on the inflation front. The chain-weighted price index, a cost-of-living measure that adjusts for consumer behavior, rose 4.1% for the quarter, well below the Dow Jones estimates for a 5.3% gain, due in large part to falling energy prices. Also, the personal consumption expenditures price index, a key inflation measure for the Federal Reserve, increased 4.2%, down sharply from 7.3% in the prior quarter.

 

Job growth decelerated in December but was still better than expected, a sign that labor market remains strong even as the Federal Reserve tries to slow economic growth. Nonfarm payrolls increased by 223,000 for the month, above the Dow Jones estimate for 200,000, while the unemployment rate fell to 3.5%. The job growth marked a decrease from the 256,000 gain in November, which was revised down 7,000 from the initial estimate. Wage growth was less than expected in an indication that inflation pressures could be weakening. By sector, leisure and hospitality led with 67,000 added jobs. The relative strength in job growth comes despite repeated efforts by the Federal Reserve to slow the economy, the labor market in particular. The central bank raised its benchmark interest rate seven times in 2022 for a total of 4.25 percentage points, with more increases likely on the way.

 

During its December meeting, The Federal Open Market Committee (FOMC) raised its benchmark interest rate to its highest level in 15 years, indicating the fight against inflation is not over despite some promising signs lately. Keeping with expectations, the rate setting FOMC voted to boost the overnight borrowing rate half a percentage point, taking it to a targeted range between 4.25% and 4.5%. The increase broke a string of four straight three-quarter point hikes, the most aggressive policy moves since the early 1980s. Along with the increase came an indication that officials expect to keep rates higher through next year, with no reductions until 2024. Fed officials believe raising rates helps take money out of the economy, reducing demand and ultimately pulling prices lower after inflation spiked to its highest level in more than 40 years. During a news conference, Chairman Jerome Powell said it was important to keep up the fight against inflation so that the expectation of higher prices does not become entrenched.

 

The new level marks the highest the fed funds rate has been since December 2007, just ahead of the global financial crisis and as the Federal Reserve was loosening policy aggressively to combat what would turn into the worst economic downturn since the Great Depression. Members penciled in increases for the funds rate until it hits a median level of 5.1% next year, equivalent to a target range of 5-5.25%. The FOMC lowered its growth targets for 2023, putting expected GDP gains at just 0.5%, barely above what would be considered a recession.

 

Market Commentary

 

Total 2022 municipal bond sale volume plunged 21% from 2021, as issuers were flush with cash and rising interest rates stymied refundings and taxable issuances. December municipal bond issuance, at $17.165 billion, also disappointed, dropping 58.1% from the same period a year earlier. Most firms at the end of 2021 estimated total issuance for 2022 would fall between $390 billion and $550 billion, basing their forecasts on factors like the new infrastructure law, interest rate expectations and monetary policy, global economic recovery and future tax policy. But Russia’s invasion of Ukraine added a major macroeconomic concern to the mix, which aside from humanitarian costs, amplified supply-chain problems and drove up fossil fuel costs and inflation around the globe. Tax-exempt issuance dropped 10.9% to $309.6 billion from $347.6 billion in 2022. Taxable issuance dropped 56.4% to $52.7 billion from $120.8 billion in 2021.

 

14 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)
 

The 30 Year US Treasury yield moved from a 2.03% on 1/3/22 to a 3.97% on 12/31/22. The MMD Tax-Free 30 Year AAA yield began the year at a 1.50% on 1/3/22 and ended the year at a 3.58% on 12/31/22. The U.S.10-year Treasury yield finished 2022 at 3.88% in a year marked by prices rising at its fastest pace in 40 years and the Federal Reserve aggressively tightening its monetary policy. The 10-year yield started the year at 1.63%. The yield hit a high of 4.24% in October.

 

On March 11, 2020, the World Health Organization announced that it had made the assessment that COVID-19 can be characterized as a pandemic. The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty.

 

Fund Summary

 

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

 

The Fund can invest in lower rated securities; however we have kept our focus on investing in bonds that are investment grade. 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 December 31, 2022, approximately 97.51% of the portfolio was above investment grade, with 97.51% rated “A” or better. The average rating of holdings in the Fund is Aa2/AA.

 

One of the Fund’s goals has been to diversify with respect to geographic location and sector. As of the end of December 2022, the Fund consists of 151 different positions varied across 28 states 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 has actively managed its Puerto Rico holdings. As of December 31, 2022, Puerto Rico holdings now represent 0.00% of the portfolio.

 

Return Summary

 

The Fund’s Net Asset Value (NAV) went from $9.44 to $8.44 during 2022. The Fund is currently at $39,411,873 million in net assets with 1,206 shareholder accounts as of December 31, 2022.

 

The Fund had a total one year return of (8.04%) (no load, gross of fees) for 2022. This compares to the (8.53%) return of its benchmark, the Bloomberg Municipal Bond Index, for the same period. That result does not take the Fund’s sales charge and expense ratio into account. The Fund’s slightly better performance relative to the benchmark was largely due to market timing and security selection.

 

The material factors that affected the Fund were the rise in interest rates in 2022 and the continued investment in high quality securities. As a result of the Fund’s focus on quality, it had very little exposure to Puerto Rico whose challenges have been well documented. The Fund does not rely on derivatives or leverage strategies. The value of the Fund and the securities may be adversely affected by impacts caused by COVID-19 and other epidemics and pandemics that may arise in the future.

 

Including the sales charge and expenses, as of December 31, 2022, the Fund’s one year return was (13.19%). The Fund had an annualized five year return of (0.77%) and an annualized return since inception of 2.34%.

 

  15

 

 

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)
 

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.

 

16 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND
MANAGEMENT DISCUSSION (UNAUDITED)(CONT.)

 

Summary of Portfolio Holdings (Unaudited)
As of December 31, 2022
New York   19.60%    $7,779,623 
Texas   12.85%   5,101,791 
Pennsylvania   11.59%   4,596,398 
Florida   8.22%   3,258,776 
California   7.03%   2,788,588 
Connecticut   6.59%   2,614,340 
Massachusetts   4.62%   1,834,572 
Indiana   3.37%   1,335,919 
New Jersey   3.34%   1,325,223 
District of Columbia   2.62%   1,038,880 
Missouri   2.20%   870,909 
Illinois   2.12%   839,782 
Nevada   1.84%   729,154 
Maine   1.58%   626,036 
Minnesota   1.49%   591,160 
Georgia   1.42%  $564,760 
Arizona   1.36%   539,753 
Utah   1.30%   517,051 
Michigan   1.15%   454,365 
Maryland   0.96%   380,003 
Tennessee   0.90%   355,298 
South Dakota   0.72%   287,006 
Iowa   0.68%   267,817 
Virginia   0.65%   258,389 
Vermont   0.57%   225,021 
North Carolina   0.52%   204,786 
Louisiana   0.25%   100,140 
North Dakota   0.25%   100,341 
Wisconsin   0.21%   81,497 
Total Investments   100.00%    $39,667,378 


  17

 

 

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Average Annual Returns (Unaudited)
For the periods ended December 31, 2022
        Expense Ratios4
          With Applicable
  1 Year 5 Year 10 Year Gross Waivers
Class A Shares - with load (13.19)% (0.77)% 0.73% 1.11% 0.91%
Class A Shares - no load (8.87)% 0.20% 1.22% 1.11% 0.91%
Class C Shares - with load1 (10.55)% (0.65)% 0.33% 1.96% 1.76%
Class C Shares - no load1 (9.66)% (0.65)% 0.33% 1.96% 1.76%
Institutional Shares2 (8.75)% 0.35% 1.37% 0.96% 0.76%
Bloomberg Municipal Bond Index3 (8.53)% 1.25% 2.13%    

 

The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. 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.

 

1Class 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.

 

2Institutional Shares commenced operations on May 1, 2020. Prior to May 1, 2020, performance is based on the performance of Class A Shares.

 

3The Bloomberg 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.

 

4Reflects the expense ratio as disclosed in the Fund’s prospectus dated May 1, 2022. Spirit of America Management Corp. (the “Adviser”) has contractually agreed to waive advisory fees and/or reimburse expenses under an Operating Expenses Agreement so that the total operating expenses will not exceed 0.90%, 1.75% and 0.75% of the Class A Shares, Class C Shares and Institutional Shares average daily net assets, respectively, through May 1, 2023. 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. Any amounts waived or reimbursed by the Adviser are subject to reimbursement by the Fund within the following three years, provided the Fund is able to make such reimbursement and remain in compliance with the expense limitations stated above. The Operating Expense Agreement may be terminated at any time, by the Board of Directors, on behalf of the Fund, upon sixty days written notice to the Adviser. Additional information pertaining to the Fund’s expense ratios as of December 31, 2022, can be found in the Financial Highlights tables.

 

18 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Growth of $10,000 (Unaudited)
(includes one-time 4.75% maximum sales charge and reinvestment of all distributions)
 

(LINE GRAPH)

 

The chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years.

 

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call (800) 452-4892.

 

  19

 

 

SPIRIT OF AMERICA INCOME FUND
MANAGEMENT DISCUSSION (UNAUDITED)
 

Dear Shareholder,

 

We are pleased to send you the 2022 Annual Report for the Spirit of America Income Fund. The Spirit of America Income Fund began operations on December 31, 2008.

 

As 2022 has come to an end, we could not be more proud and excited about the progress of this fund. Our goal is to continue seeking current income while investing in quality fixed income securities.

 

We firmly maintain our philosophy that striving for the optimal balance between yield and quality 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,

 

(PHOTO OF DAVID LERNER) (-s-David Lerner)

David Lerner

President

Spirit of America Investment Fund, Inc.

(PHOTO OF DOUG REVELLO)

(-s-Doug Revello)

Mark Reilly

Portfolio Manager

 

20 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA INCOME FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)
 

Economic Summary

 

At the end of December, the U.S. Bureau of Economic Analysis released its final reading of the third quarter 2022 gross domestic product (GDP), to show an increase in the annual growth rate of 3.2%, higher than previous estimates, at least temporarily easing recession fears. GDP, a sum of all goods and services, unexpectedly rose from the previously reported 2.9%. The stronger than previously estimated growth in the third quarter GDP follows consecutive negative quarters to start the year, meeting a commonly accepted definition of a recession. The growth in the third quarter came in large part due to a narrowing trade deficit, which economists expected and consider to be a one-off occurrence that won’t be repeated in future quarters. Consumer spending as measured through personal consumption expenditures increased at just a 1.4% pace in the quarter, down from 2% in the second quarter. Gross private domestic investment fell 8.5%, continuing a trend after falling 14.1% in the second quarter. Residential investment, a gauge of homebuilding, tumbled 26.4% after falling 17.8% in the second quarter, reflecting a sharp slowdown in the real estate market. On the plus side, exports, which add to GDP, rose 14.4%, while imports, which subtract, dropped 6.9%. There was some good news on the inflation front. The chain-weighted price index, a cost-of-living measure that adjusts for consumer behavior, rose 4.1% for the quarter, well below the Dow Jones estimates for a 5.3% gain, due in large part to falling energy prices. Also, the personal consumption expenditures price index, a key inflation measure for the Federal Reserve, increased 4.2%, down sharply from 7.3% in the prior quarter.

 

Job growth decelerated in December but was still better than expected, a sign that labor market remains strong even as the Federal Reserve tries to slow economic growth. Nonfarm payrolls increased by 223,000 for the month, above the Dow Jones estimate for 200,000, while the unemployment rate fell to 3.5%. The job growth marked a decrease from the 256,000 gain in November, which was revised down 7,000 from the initial estimate. Wage growth was less than expected in an indication that inflation pressures could be weakening. By sector, leisure and hospitality led with 67,000 added jobs. The relative strength in job growth comes despite repeated efforts by the Federal Reserve to slow the economy, the labor market in particular. The central bank raised its benchmark interest rate seven times in 2022 for a total of 4.25 percentage points, with more increases likely on the way.

 

During its December meeting, The Federal Open Market Committee (FOMC) raised its benchmark interest rate to its highest level in 15 years, indicating the fight against inflation is not over despite some promising signs lately. Keeping with expectations, the rate setting FOMC voted to boost the overnight borrowing rate half a percentage point, taking it to a targeted range between 4.25% and 4.5%. The increase broke a string of four straight three-quarter point hikes, the most aggressive policy moves since the early 1980s. Along with the increase came an indication that officials expect to keep rates higher through next year, with no reductions until 2024. Fed officials believe raising rates helps take money out of the economy, reducing demand and ultimately pulling prices lower after inflation spiked to its highest level in more than 40 years. During a news conference, Chairman Jerome Powell said it was important to keep up the fight against inflation so that the expectation of higher prices does not become entrenched.

 

The new level marks the highest the fed funds rate has been since December 2007, just ahead of the global financial crisis and as the Federal Reserve was loosening policy aggressively to combat what would turn into the worst economic downturn since the Great Depression. Members penciled in increases for the funds rate until it hits a median level of 5.1% next year, equivalent to a target range of 5-5.25%. The FOMC lowered its growth targets for 2023, putting expected GDP gains at just 0.5%, barely above what would be considered a recession.

 

Market Commentary

 

When it came to market performance and investment returns in 2022 there was one clear, dominant force driving the markets and that was: inflation. We saw the highest inflation numbers in over 40 years which led to the Federal Reserve instituting an unprecedented series of interest rate hikes. These hikes were felt across both fixed income and equity markets. The Morningstar U.S. Market Index lost 19.4% in 2022, leaving the stock market with its biggest annual loss since 2008, when it lost 38.4%. Investor concerns about rising interest rates, slowing economic growth and persistently high inflation triggered sustained bouts of selling throughout 2022. Tech stocks and growth names in communication services were hit the hardest. These sectors were among the worst performing segments for 2022. Information technology stocks from the S&P 500 were down 27% for the year, while communications services stocks were down more than 30% in 2022. We now move to the more positive side of the ledger for 2022. Of the 11 sectors in the S&P 500, just one posted a positive return for the year and that was energy. Overall it was a rough year for the markets and investors alike.

 

  21

 

 

SPIRIT OF AMERICA INCOME FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)
 

Total 2022 municipal bond sale volume plunged 21% from 2021, as issuers were flush with cash and rising interest rates stymied refundings and taxable issuances. December municipal bond issuance, at $17.165 billion, also disappointed, dropping 58.1% from the same period a year earlier. Most firms at the end of 2021 estimated total issuance for 2022 would fall between $390 billion and $550 billion, basing their forecasts on factors like the new infrastructure law, interest rate expectations and monetary policy, global economic recovery and future tax policy. But Russia’s invasion of Ukraine added a major macroeconomic concern to the mix, which aside from humanitarian costs, amplified supply-chain problems and drove up fossil fuel costs and inflation around the globe. Tax-exempt issuance dropped 10.9% to $309.6 billion from $347.6 billion in 2022. Taxable issuance dropped 56.4% to $52.7 billion from $120.8 billion in 2021.

 

The 30 Year U.S. Treasury yield moved from a 2.03% on 1/3/22 to a 3.97% on 12/31/22. The MMD Taxable 30 Year AAA yield began the year at a 2.59% on 1/3/22 and ended the year at a 5.34% on 12/31/22. The U.S.10-year Treasury yield finished 2022 at 3.88% in a year marked by prices rising at its fastest pace in 40 years and the Federal Reserve aggressively tightening its monetary policy. The 10-year yield started the year at 1.63%. The yield hit a high of 4.24% in October.

 

On March 11, 2020, the World Health Organization announced that it had made the assessment that COVID-19 can be characterized as a pandemic. The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty.

 

Fund Summary

 

The Spirit of America Income Fund’s (SOAIX) (the “Fund”) 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 equity securities, preferred stocks, collateralized mortgage obligations, and master limited partnerships (MLPs).

 

At the end of 2022, the Fund had over 57% of its assets in taxable municipal bonds, more than 20% in preferred stock, over 13% in common stock positions and more than 10% in corporate bonds. We remain diligent in our approach to the market. Here at Spirit of America each and every credit goes through rigorous credit analysis.

 

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 the experience of our dedicated team of professionals. 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 continue to validate that belief.

 

Return Summary

 

The Fund’s Net Asset Value (NAV) went from $12.35 to $10.03 during 2022. The Fund is currently at $75,285,793 million in net assets with 4,212 shareholder accounts as of December 31, 2022.

 

The Fund had a total return of (11.71%) (gross of fees) for fiscal year ended December 31, 2022. This compares to the (13.01%) returned by its benchmark, the Bloomberg U.S. Aggregate Bond Index, for the same period.

 

The material factors that affected the Fund were market direction and security selection. The Fund’s outperformance relative to its benchmark was principally due to the performance of the common stock holdings within the portfolio, which are not prevalent in the benchmark. The common stock holdings within the Fund had a total return of approximately 11% for 2022. The Fund does not rely on derivatives or leverage strategies. The value of the Fund and the securities may be adversely affected by impacts caused by COVID-19 and other epidemics and pandemics that may arise in the future.

 

Including the sales charge and expenses, as of December 31, 2022, the Fund’s one year return was (16.85%). The Fund, which began operations in January 2009, had an annualized five year return of 0.40% and an annualized return since inception of 5.29%.

 

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

 

22 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA INCOME FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Summary of Portfolio Holdings (Unaudited)
As of December 31, 2022
Municipal Bonds   56.61%    $44,859,111 
Preferred Stocks   19.86%   15,740,418 
Common Stocks   12.88%   10,208,559 
Corporate Bonds   10.58%   8,385,006 
Collateralized Mortgage Obligations   0.07%   59,085 
Total Investments   100.00%  $79,252,179 

 

Average Annual Returns (Unaudited)
For the periods ended December 31, 2022
        Expense Ratios4
          With Applicable
  1 Year 5 Year 10 Year Gross Waivers
Class A Shares - with load (16.85)% 0.40% 2.39% 1.14% 1.11%
Class A Shares - no load (12.69)% 1.38% 2.89% 1.14% 1.11%
Class C Shares - with load1 (14.15)% 0.59% 2.11% 1.89% 1.86%
Class C Shares - no load1 (13.34)% 0.59% 2.11% 1.89% 1.86%
Institutional Shares2 (12.51)% 1.61% 3.13% 0.89% 0.86%
Bloomberg U.S. Aggregate Bond Index3 (13.01)% 0.02% 1.06%    
           

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.

 

1Class 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.

 

2Institutional Shares commenced operations on May 1, 2020. Prior to May 1, 2020, performance is based on the performance of Class A Shares.

 

3The Bloomberg 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.

 

4Reflects the expense ratio as disclosed in the Fund’s prospectus dated May 1, 2022. Spirit of America Management Corp. (the “Adviser”) has contractually agreed to waive advisory fees and/or reimburse expenses under an Operating Expenses Agreement so that the total operating expenses will not exceed 1.10%, 1.85% and 0.85% of the Class A Shares, Class C Shares and Institutional Shares average daily net assets, respectively, through May 1, 2023. 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. Any amounts waived or reimbursed by the Adviser are subject to reimbursement by the Fund within the following three years, provided the Fund is able to make such reimbursement and remain in compliance with the expense limitations stated above. The Operating Expense Agreement may be terminated at any time, by the Board of Directors, on behalf of the Fund, upon sixty days written notice to the Adviser. Additional information pertaining to the Fund’s expense ratios as of December 31, 2022, can be found in the Financial Highlights tables.

 

  23

 

 

SPIRIT OF AMERICA INCOME FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Growth of $10,000 (Unaudited)
(includes one-time 4.75% maximum sales charge and reinvestment of all distributions)
 

(LINE GRAPH)

 

The chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years.

 

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call (800) 452-4892.

 

24 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA INCOME & OPPORTUNITY FUND
MANAGEMENT DISCUSSION (UNAUDITED)
 

Dear Shareholder,

 

We are pleased to send you the 2022 Annual Report for The Spirit of America Income & Opportunity Fund (the “Fund”). The Fund began operations on July 8, 2013.

 

On January 24, 2023, the Board of Directors of Spirit of America Investment Fund, Inc., on behalf of the Fund, approved a proposal to close and liquidate the Fund. The Fund is expected to cease operations on March 3, 2023. For additional information, please see the Fund’s prospectus supplement dated January 31, 2023. As disclosed in the supplement, the Fund has ceased to pursue its investment objective and management of the Fund has begun the process of liquidating the Fund’s assets in anticipation of the Fund’s closure.

 

As always, we remain committed to providing you with excellent service and a full spectrum of investment choices. For more information, please visit us at www.SOAFunds.com.

 

Sincerely,

 

(PHOTO OF DAVID LERNER) (-s-David Lerner)

David Lerner

President

Spirit of America Investment Fund, Inc.

(PHOTO OF DOUG REVELLO)

(-s-Doug Revello)

Mark Reilly

Portfolio Manager

 

  25

 

 

SPIRIT OF AMERICA INCOME & OPPORTUNITY FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)
 

Economic Summary

 

At the end of December, the U.S. Bureau of Economic Analysis released its final reading of the third quarter 2022 gross domestic product (GDP), to show an increase in the annual growth rate of 3.2%, higher than previous estimates, at least temporarily easing recession fears. GDP, a sum of all goods and services, unexpectedly rose from the previously reported 2.9%. The stronger than previously estimated growth in the third quarter GDP follows consecutive negative quarters to start the year, meeting a commonly accepted definition of a recession. The growth in the third quarter came in large part due to a narrowing trade deficit, which economists expected and consider to be a one-off occurrence that won’t be repeated in future quarters. Consumer spending as measured through personal consumption expenditures increased at just a 1.4% pace in the quarter, down from 2% in the second quarter. Gross private domestic investment fell 8.5%, continuing a trend after falling 14.1% in the second quarter. Residential investment, a gauge of homebuilding, tumbled 26.4% after falling 17.8% in the second quarter, reflecting a sharp slowdown in the real estate market. On the plus side, exports, which add to GDP, rose 14.4%, while imports, which subtract, dropped 6.9%. There was some good news on the inflation front. The consumer price index, a cost-of-living measure that adjusts for consumer behavior, rose 4.1% for the quarter, well below the Dow Jones estimates for a 5.3% gain, due in large part to falling energy prices. Also, the personal consumption expenditures index, a key inflation measure for the Federal Reserve, increased 4.2%, down sharply from 7.3% in the prior quarter.

 

Job growth decelerated in December but was still better than expected, a sign that labor market remains strong even as the Federal Reserve tries to slow economic growth. Nonfarm payrolls increased by 223,000 for the month, above the Dow Jones estimate for 200,000, while the unemployment rate fell to 3.5, 0.2 percentage point below the expectation. The job growth marked a decrease from the 256,000 gain in November, which was revised down 7,000 from the initial estimate. Wage growth was less than expected in an indication that inflation pressures could be weakening. By sector, leisure and hospitality led with 67,000 added jobs. The relative strength in job growth comes despite repeated efforts by the Federal Reserve to slow the economy, the labor market in particular. The central bank raised its benchmark seven times in 2022 for a total of 4.25 percentage points, with more increases likely on the way.

 

During its December meeting, The Federal Open Market Committee (FOMC) raised its benchmark interest rate to its highest level in 15 years, indicating the fight against inflation is not over despite some promising signs lately. Keeping with expectations, the rate setting FOMC voted to boost the overnight borrowing rate half a percentage point, taking it to a targeted range between 4.25% and 4.5%. The increase broke a string of four straight three-quarter point hikes, the most aggressive policy moves since the early 1980s. Along with the increase came an indication that officials expect to keep rates higher through next year, with no reductions until 2024. Fed officials believe raising rates helps take money out of the economy, reducing demand and ultimately pulling prices lower after inflation spiked to its highest level in more than 40 years. During a news conference, Chairman Jerome Powell said it was important to keep up the fight against inflation so that the expectation of higher prices does not become entrenched.

 

The new level marks the highest the fed funds rate has been since December 2007, just ahead of the global financial crisis and as the Federal Reserve was loosening policy aggressively to combat what would turn into the worst economic downturn since the Great Depression. Members penciled in increases for the funds rate until it hits a median level of 5.1% next year, equivalent to a target range of 5-5.25%. The FOMC lowered its growth targets for 2023, putting expected GDP gains at just 0.5%, barely above what would be considered a recession.

 

Market Commentary

 

When it came to market performance and investment returns in 2022 there was one clear, dominant force driving the markets and that was: inflation. We saw the highest inflation numbers in over 40 years which led to the Federal Reserve instituting an unprecedented series of interest rate hikes. These hikes were felt across both fixed income and equity markets. The Morningstar U.S. Market Index lost 19.4% in 2022, leaving the stock market with its biggest annual loss since 2008, when it lost 38.4%. Investor concerns about rising interest rates, slowing economic growth and persistently high inflation triggered sustained bouts of selling throughout 2022. Tech stocks and growth names in communication services were hit the hardest. These sectors were among the worst performing segments for 2022. Information technology stocks from the S&P 500 were down 27% for the year, while communications services stocks were down more than 30% in 2022. We now move to the more positive side of the ledger for 2022. Of the 11 sectors in the S&P 500, just one posted a positive return for the year and that was energy. Overall it was a rough year for the markets and investors alike.

 

26 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA INCOME & OPPORTUNITY FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)
 

Total 2022 municipal bond sale volume plunged 21% from 2021, as issuers were flush with cash and rising interest rates stymied refundings and taxable issuances. December municipal bond issuance, at $17.165 billion, also disappointed, dropping 58.1% from the same period a year earlier. Most firms at the end of 2021 estimated total issuance for 2022 would fall between $390 billion and $550 billion, basing their forecasts on factors like the new infrastructure law, interest rate expectations and monetary policy, global economic recovery and future tax policy. But Russia’s invasion of Ukraine added a major macroeconomic concern to the mix, which aside from humanitarian costs, amplified supply-chain problems and drove up fossil fuel costs and inflation around the globe. Tax-exempt issuance dropped 10.9% to $309.6 billion from $347.6 billion in 2022. Taxable issuance dropped 56.4% to $52.7 billion from $120.8 billion in 2021.

 

The 30 Year U.S. Treasury yield moved from a 2.03% on 1/3/22 to a 3.97% on 12/31/22. The MMD Taxable 30 Year AAA yield began the year at a 2.59% on 1/3/22 and ended the year at a 5.34% on 12/31/22. The U.S.10-year Treasury yield finished 2022 at 3.88% in a year marked by prices rising at its fastest pace in 40 years and the Federal Reserve aggressively tightening its monetary policy. The 10-year yield started the year at 1.63%. The yield hit a high of 4.24% in October.

 

On March 11, 2020, the World Health Organization announced that it had made the assessment that COVID-19 can be characterized as a pandemic. The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty.

 

Fund Summary

 

The Spirit of America Income & Opportunity Fund’s (SOAOX) (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, and master limited partnerships (MLPs).

 

At the end of 2022, the Fund had more than 41% of its assets invested in taxable municipal bonds, over 37% in non-MLP common stock positions, more than 11% in preferred stock positions, over 5% in master limited partnerships (MLPs) and more than 2% in corporate bonds.

 

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 years of experience being involved with the markets.

 

Return Summary

 

The Fund had a total one year return of (21.36%) (no load, gross of fees) as of December 31, 2022. This compares to the (13.01%) return of its benchmark, the Bloomberg U.S. Aggregate Bond Index, for the same period. That result does not take the Fund’s sales charge and expense ratio into account.

 

The material factors that affected the Fund were market direction and security selection. The downward trajectory of the stock market contributed to the Fund’s underperformance of the benchmark, which is solely a measure of the bond market. The common stock holdings within the Fund had a total return of approximately (25%) for 2022.

 

The holdings of the Fund were chosen based on consideration of several factors including credit ratings, market capitalization, and securities that provide income. The Fund did not rely on derivatives or leverage strategies.

 

Including the sales charge and expenses, as of December 31, 2022, the Fund’s one year return was (26.06%). The Fund, which began operations in July 2013, had an annualized five year return of 0.38% and an annualized return since inception of 2.26% as December 31, 2022.

 

  27

 

 

SPIRIT OF AMERICA INCOME & OPPORTUNITY FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Summary of Portfolio Holdings (Unaudited)
As of December 31, 2022
Common Stocks   43.38%    $7,995,626 
Municipal Bonds   41.59%   7,665,370 
Preferred Stocks   11.72%   2,159,526 
Corporate Bonds   2.44%   449,247 
Exchange-Traded Funds   0.87%   160,300 
Total Investments   100.00%  $18,430,069 

 

Average Annual Returns (Unaudited)
For the periods ended December 31, 2022
        Expense Ratios4
      Since    
      Inception   With Applicable
  1 Year 5 Year (July 8, 2013) Gross Waivers
Class A Shares - with load (26.06)% 0.38% 2.26% 1.41% 1.26%
Class A Shares - no load (22.34)% 1.36% 2.78% 1.41% 1.26%
Class C Shares - with load1 (23.64)% 0.63% 1.98% 2.16% 2.01%
Class C Shares - no load1 (22.91)% 0.63% 1.98% 2.16% 2.01%
Institutional Shares2 (22.13)% 1.63% 3.05% 1.16% 1.01%
Bloomberg U.S. Aggregate Bond Index3 (13.01)% 0.02% 1.44%    
           

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.

 

1Class 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.

 

2Institutional Shares commenced operations on May 1, 2020. Prior to May 1, 2020, performance is based on the performance of Class A Shares.

 

3The Bloomberg 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.

 

4Reflects the expense ratio as disclosed in the Fund’s prospectus dated May 1, 2022. Spirit of America Management Corp. (the “Adviser”) has contractually agreed to waive advisory fees and/or reimburse expenses under an Operating Expenses Agreement so that the total operating expenses will not exceed 1.25%, 2.00% and 1.00% of the Class A Shares, Class C Shares and Institutional Shares average daily net assets, respectively, through May 1, 2023. 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. Any amounts waived or reimbursed by the Adviser are subject to reimbursement by the Fund within the following three years, provided the Fund is able to make such reimbursement and remain in compliance with the expense limitations stated above. The Operating Expense Agreement may be terminated at any time, by the Board of Directors, on behalf of the Fund, upon sixty days written notice to the Adviser. Additional information pertaining to the Fund’s expense ratios as of December 31, 2022, can be found in the Financial Highlights tables.

 

28 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA INCOME & OPPORTUNITY FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)
 

 

Fixed Distribution Policy (Unaudited)
 

The Board of Directors of the Fund has set a fixed distribution policy whereby the Fund will declare semi-annual distributions comprised of income earned, if any, realized long-term capital gains, if any, and to the extent necessary, return of capital, payable as of June 30 and December 31 of each year in the annual aggregate minimum amount of $0.60 per share. Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of these distributions. The Fund’s total return based on net asset value is presented on the prior page as well as in the Financial Highlights tables.

 

  29

 

 

SPIRIT OF AMERICA INCOME & OPPORTUNITY FUND
MANAGEMENT DISCUSSION (UNAUDITED) (CONT.)

 

Growth of $10,000 (Unaudited)
(includes one-time 4.75% maximum sales charge and reinvestment of all distributions)
 

(LINE GRAPH)

 

The chart represents historical performance of a hypothetical investment of $10,000 in the Fund since inception.

 

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call (800) 452-4892.

 

30 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND
SCHEDULE OF INVESTMENTS   |   DECEMBER 31, 2022

 

   Shares   Market Value 
Common Stocks 97.17%          
           
Data Center REITs 8.00%          
Digital Realty Trust, Inc.   26,581   $2,665,277 
Equinix, Inc.   7,010    4,591,760 
         7,257,037 
Energy 2.54%          
Black Stone Minerals LP   19,000    320,530 
Cheniere Energy Partners LP   13,500    767,745 
Energy Transfer LP   42,500    504,475 
Enterprise Products Partners LP   7,000    168,840 
Hess Midstream LP, Class A   1,000    29,920 
Magellan Midstream Partners LP   600    30,126 
MPLX LP   9,000    295,560 
Viper Energy Partners LP   6,000    190,740 
         2,307,936 
Financials 0.27%          
Blackstone Group, Inc. (The), Class A   3,300    244,827 
           
Gaming REITs 5.27%          
Gaming and Leisure Properties, Inc.   33,885    1,765,069 
VICI Properties, Inc.   93,297    3,022,823 
         4,787,892 
Health Care REITs 4.27%          
Global Medical REIT, Inc.   15,000    142,200 
Healthcare Realty Trust, Inc.   10,000    192,700 
Healthpeak Properties, Inc.   39,568    991,970 
Medical Properties Trust, Inc.   29,500    328,630 
Omega Healthcare Investors, Inc.   11,000    307,450 
Physicians Realty Trust   16,350    236,584 
Ventas, Inc.   6,050    272,553 
Welltower, Inc.   21,475    1,407,686 
         3,879,773 
Hotel REITs 2.54%          
Apple Hospitality REIT, Inc.   42,710    673,964 
Host Hotels & Resorts, Inc.   45,900    736,695 
Park Hotels & Resorts, Inc.   9,250    109,057 
Pebblebrook Hotel Trust   42,281    566,143 
Summit Hotel Properties, Inc.   9,000    64,980 
Sunstone Hotel Investors, Inc.   15,700    151,662 
         2,302,501 
Industrial REITs 17.70%          
Americold Realty Trust   5,700    161,367 
Innovative Industrial Properties, Inc.   13,700    1,388,495 
Prologis, Inc.   87,451    9,858,351 
Rexford Industrial Realty, Inc.   14,500    792,280 
STAG Industrial, Inc.   45,950    1,484,645 
Terreno Realty Corp.   41,900    2,382,853 
         16,067,991 

 

See accompanying notes which are an integral part of these financial statements.

 

  31

 

 

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Shares   Market Value 
Infrastructure REITs 3.90%          
American Tower Corp., Class A   8,060   $1,707,592 
Crown Castle International Corp.   13,530    1,835,209 
         3,542,801 
Midstream - Oil & Gas 0.32%          
Plains All American Pipeline LP   11,000    129,360 
Plains GP Holdings LP, Class A(a)   5,000    62,200 
Western Midstream Partners LP   3,750    100,687 
         292,247 
Mortgage Finance 1.19%          
Blackstone Mortgage Trust, Inc., Class A   26,700    565,239 
Starwood Property Trust, Inc.   28,000    513,240 
         1,078,479 
Multi Asset Class REITs 3.15%          
Gladstone Commercial Corp.   22,500    416,250 
Lexington Realty Trust   2,700    27,054 
One Liberty Properties, Inc.   2,500    55,550 
WP Carey, Inc.   30,150    2,356,222 
         2,855,076 
Office REITs 3.57%          
Alexandria Real Estate Equities, Inc.   13,750    2,002,962 
American Assets Trust, Inc.   3,500    92,750 
Boston Properties, Inc.   7,015    474,074 
City Office REIT, Inc.   30,000    251,400 
Cousins Properties, Inc.   1,000    25,290 
Hudson Pacific Properties, Inc.   4,250    41,353 
Kilroy Realty Corp.   9,015    348,610 
         3,236,439 
Residential REITs 21.57%          
American Homes 4 Rent, Class A   15,050    453,607 
Apartment Income REIT Corp.   25,902    888,697 
AvalonBay Communities, Inc.   15,390    2,485,793 
Camden Property Trust   13,600    1,521,568 
Equity LifeStyle Properties, Inc.   34,450    2,225,470 
Equity Residential   30,715    1,812,185 
Essex Property Trust, Inc.   7,236    1,533,453 
Invitation Homes, Inc.   2,000    59,280 
Mid-America Apartment Communities, Inc.   17,622    2,766,478 
Sun Communities, Inc.   26,850    3,839,550 
UDR, Inc.   47,100    1,824,183 
UMH Properties, Inc.   10,500    169,050 
         19,579,314 
Retail REITs 12.68%          
Agree Realty Corp.   8,250    585,173 
Brixmor Property Group, Inc.   47,975    1,087,593 
Federal Realty Investment Trust   13,700    1,384,248 
Four Corners Property Trust, Inc.   5,000    129,650 
Getty Realty Corp.   1,000    33,850 
Kimco Realty Corp.   29,569    626,271 
National Retail Properties, Inc.   17,750    812,240 
Realty Income Corp.   31,485    1,997,094 
Regency Centers Corp.   30,000    1,875,000 
           

See accompanying notes which are an integral part of these financial statements.

 

32 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Shares   Market Value 
Retail REITs (cont.)          
Simon Property Group, Inc.   20,700   $2,431,836 
Spirit MTA REIT(a)(b)   1,140     
STORE Capital Corp.   3,000    96,180 
Tanger Factory Outlet Centers, Inc.   25,100    450,294 
         11,509,429 
Self-Storage REITs 8.70%          
CubeSmart   20,750    835,188 
Extra Space Storage, Inc.   13,395    1,971,476 
Life Storage, Inc.   25,850    2,546,225 
Public Storage   9,075    2,542,724 
         7,895,613 
Specialty REITs 1.39%          
Hannon Armstrong Sustainable Infrastructure Capital, Inc.   4,717    136,699 
Iron Mountain, Inc.   22,500    1,121,625 
         1,258,324 
Timber REITs 0.11%          
Weyerhaeuser Co.   3,300    102,300 
           
Total Common Stocks (Cost $74,301,333)        88,197,979 
           
Preferred Stocks 2.20%          
           
Data Center REITs 0.09%          
Digital Realty Trust, Inc., Series J, 5.25%   4,000    84,080 
           
Hotel REITs 1.10%          
Ashford Hospitality Trust, Inc., Series F, 7.38%   6,000    103,260 
Hersha Hospitality Trust, Series D, 6.50%   5,000    93,525 
Hersha Hospitality Trust, Series E, 6.50%   5,000    92,500 
Pebblebrook Hotel Trust, Series F, 6.30%   2,500    44,500 
Pebblebrook Hotel Trust, Series G, 6.38%   4,000    72,800 
Pebblebrook Hotel Trust, Series H, 6.38%   6,000    99,000 
Sotherly Hotels, Inc., Series B, 8.00%   6,000    126,120 
Sotherly Hotels, Inc., Series C, 7.88%   2,000    40,700 
Summit Hotel Properties, Inc., Series F, 5.88%   10,000    171,300 
Sunstone Hotel Investors, Inc., Series H, 6.13%   4,000    77,600 
Sunstone Hotel Investors, Inc., Series I, 5.70%   4,000    71,960 
         993,265 
Mortgage Finance 0.04%          
New York Mortgage Trust Inc., Series G, 7.00%   2,000    30,500 
           
Multi Asset Class REITs 0.04%          
Vornado Realty Trust, Series M, 5.25%   2,500    40,150 
           
Office REITs 0.06%          
Hudson Pacific Properties Inc., Series C, 4.75%   4,000    50,120 
           
Residential REITs 0.05%          
American Homes 4 Rent, Series G, 5.88%   2,000    44,320 
           

See accompanying notes which are an integral part of these financial statements.

 

  33

 

 

SPIRIT OF AMERICA REAL ESTATE INCOME AND GROWTH FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Shares   Market Value 
Retail REITs 0.19%          
CTO Realty Growth, Inc., Series A, 6.38%   2,000   $40,900 
Federal Realty Investment Trust, Series C, 5.00%   6,500    131,170 
         172,070 
Self-Storage REITs 0.63%          
Public Storage, Series I, 4.88%   1,917    38,628 
Public Storage, Series K, 4.75%   4,000    80,680 
Public Storage, Series L, 4.63%   2,000    38,220 
Public Storage, Series M, 4.13%   1,167    20,084 
Public Storage, Series N, 3.88%   4,000    65,080 
Public Storage, Series P, 4.00%   2,000    33,260 
Public Storage, Series Q, 3.95%   4,000    65,680 
Public Storage, Series R, 4.00%   4,000    66,800 
Public Storage, Series S, 4.10%   10,000    170,800 
         579,232 
Total Preferred Stocks (Cost $2,752,766)        1,993,737 
           
   Principal     
   Amount     
Municipal Bonds 0.17%          
Franklin County Convention Facilities Authority, Revenue Bonds, 6.54%, 12/1/2036  $140,000    150,992 
           
Total Municipal Bonds (Cost $160,021)        150,992 
           
   Shares     
Money Market Funds 0.12%          
Morgan Stanley Institutional Liquidity Funds Government Portfolio, Institutional Class, 4.11%(c)   109,524    109,524 
           
Total Money Market Funds (Cost $109,524)        109,524 
           
Total Investments — 99.66% (Cost $77,323,644)        90,452,232 
Other Assets in Excess of Liabilities — 0.34%        304,344 
NET ASSETS — 100.00%       $90,756,576 
           
(a)Non-income producing security.

 

(b)Security is currently being valued according to the fair value procedures approved by the Board of Directors.

 

(c)Rate disclosed is the seven day effective yield as of December 31, 2022.

 

See accompanying notes which are an integral part of these financial statements.

 

34 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA LARGE CAP VALUE FUND
SCHEDULE OF INVESTMENTS   |   DECEMBER 31, 2022

 

   Shares   Market Value 
Common Stocks 99.55%          
           
Communications 4.97%          
Alphabet, Inc., Class A(a)   36,300   $3,202,749 
AT&T, Inc.   6,500    119,665 
Verizon Communications, Inc.   28,540    1,124,476 
Walt Disney Co. (The)(a)   18,950    1,646,376 
         6,093,266 
Consumer Discretionary 3.72%          
Amazon.com, Inc.(a)   11,600    974,400 
Home Depot, Inc. (The)   6,238    1,970,335 
Lowe’s Companies, Inc.   1,750    348,670 
Masco Corp.   8,500    396,695 
McDonald’s Corp.   2,980    785,319 
NIKE, Inc., Class B   700    81,907 
         4,557,326 
Consumer Staples 9.34%          
Altria Group, Inc.   12,650    578,231 
Coca-Cola Co. (The)   7,900    502,519 
Colgate-Palmolive Co.   1,500    118,185 
Conagra Brands, Inc.   7,100    274,770 
Constellation Brands, Inc., Class A   1,400    324,450 
Costco Wholesale Corp.   6,451    2,944,882 
Kroger Co. (The)   9,000    401,220 
Lamb Weston Holdings, Inc.   4,300    384,248 
PepsiCo, Inc.   2,400    433,584 
Philip Morris International, Inc.   7,350    743,894 
Procter & Gamble Co. (The)   7,265    1,101,083 
Target Corp.   11,430    1,703,527 
Wal-Mart Stores, Inc.   13,684    1,940,254 
         11,450,847 
Energy 14.08%          
Antero Midstream Corp.   5,000    53,950 
Baker Hughes Co.   8,750    258,388 
Cheniere Energy, Inc.   13,150    1,971,974 
Chevron Corp.   16,960    3,044,150 
CNX Resources Corp.(a)   4,000    67,360 
ConocoPhillips   10,300    1,215,400 
Devon Energy Corp.   10,800    664,308 
Diamondback Energy, Inc.   2,650    362,467 
Enbridge, Inc.   3,000    117,300 
EOG Resources, Inc.   4,400    569,888 
Exxon Mobil Corp.   7,550    832,765 
Halliburton Co.   4,000    157,400 
Kinder Morgan, Inc.   22,750    411,320 
Marathon Oil Corp.   1,000    27,070 
Marathon Petroleum Corp.   250    29,098 
Occidental Petroleum Corp.   6,500    409,435 
ONEOK, Inc.   2,000    131,400 
Phillips 66   7,250    754,580 
Pioneer Natural Resources Co.   7,575    1,730,054 
Schlumberger Ltd.   500    26,730 
Targa Resources Corp.   5,600    411,600 
           

See accompanying notes which are an integral part of these financial statements.

 

  35

 

 

SPIRIT OF AMERICA LARGE CAP VALUE FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Shares   Market Value 
Energy (cont.)          
Valero Energy Corp.   16,565   $2,101,436 
Williams Companies, Inc. (The)   58,000    1,908,200 
         17,256,273 
Financials 7.82%          
American Express Co.   5,000    738,750 
Bank of America Corp.   30,850    1,021,752 
Berkshire Hathaway, Inc., Class B(a)   3,770    1,164,553 
Blackstone Group, Inc. (The), Class A   11,250    834,637 
Carlyle Group, Inc. (The)   6,050    180,532 
Citigroup, Inc.   17,200    777,956 
CME Group, Inc.   1,404    236,097 
Goldman Sachs Group, Inc. (The)   2,915    1,000,953 
JPMorgan Chase & Co.   20,992    2,815,027 
Morgan Stanley   3,000    255,060 
Signature Bank   1,325    152,667 
SVB Financial Group(a)   600    138,084 
Wells Fargo & Co.   6,500    268,385 
         9,584,453 
Health Care 14.29%          
Abbott Laboratories   3,100    340,349 
AbbVie, Inc.   24,957    4,033,301 
Amgen, Inc.   2,700    709,128 
Bristol-Myers Squibb Co.   16,650    1,197,967 
Centene Corp.(a)   9,800    803,698 
CVS Health Corp.   7,611    709,269 
Edwards LifeSciences Corp.(a)   3,000    223,830 
Eli Lilly & Co.   3,200    1,170,688 
Humana, Inc.   1,350    691,456 
McKesson Corp.   4,700    1,763,064 
Medtronic PLC   7,069    549,403 
Merck & Co., Inc.   18,350    2,035,933 
Pfizer, Inc.   8,150    417,606 
Quest Diagnostics, Inc.   4,500    703,980 
Thermo Fisher Scientific, Inc.   1,490    820,528 
UnitedHealth Group, Inc.   2,525    1,338,705 
         17,508,905 
Industrials 11.05%          
Boeing Co. (The)(a)   3,355    639,094 
Caterpillar, Inc.   11,340    2,716,610 
CSX Corp.   42,525    1,317,424 
Cummins, Inc.   3,550    860,129 
Deere & Co.   6,235    2,673,319 
FedEx Corp.   1,500    259,800 
Honeywell International, Inc.   8,900    1,907,270 
Johnson Controls International PLC   8,253    528,192 
Lockheed Martin Corp.   200    97,298 
Raytheon Technologies Corp.   2,100    211,932 
Union Pacific Corp.   750    155,303 
United Parcel Service, Inc., Class B   2,450    425,908 
Waste Connections, Inc.   13,175    1,746,478 
         13,538,757 
           

See accompanying notes which are an integral part of these financial statements.

 

36 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA LARGE CAP VALUE FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Shares   Market Value 
Materials 1.91%          
CF Industries Holdings, Inc.   8,200   $698,640 
Corteva, Inc.   7,233    425,156 
Dow, Inc.   6,083    306,522 
DuPont de Nemours, Inc.   6,500    446,095 
International Paper Co.   500    17,315 
Linde PLC   1,300    424,034 
WestRock Co.   500    17,580 
         2,335,342 
Real Estate Investment Trusts (REITs) 2.28%          
American Tower Corp., Class A   1,040    220,334 
Crown Castle International Corp.   2,690    364,872 
Equinix, Inc.   1,125    736,909 
Mid-America Apartment Communities, Inc.   250    39,248 
Prologis, Inc.   6,500    732,745 
Sun Communities, Inc.   3,300    471,900 
Terreno Realty Corp.   2,075    118,005 
VICI Properties, Inc.   3,073    99,565 
Weyerhaeuser Co.   500    15,500 
         2,799,078 
Technology 26.07%          
Accenture PLC, Class A   4,025    1,074,031 
Adobe, Inc.(a)   1,600    538,448 
Advanced Micro Devices, Inc.(a)   2,100    136,017 
Apple, Inc.   50,582    6,572,119 
Applied Materials, Inc.   14,220    1,384,744 
Cisco Systems, Inc.   17,250    821,790 
Cognizant Technology Solutions Corp., Class A   4,600    263,074 
Corning, Inc.   10,000    319,400 
Dell Technologies, Inc., Class C   1,624    65,317 
Garmin Ltd.   1,000    92,290 
HP, Inc.   15,600    419,172 
International Business Machines Corp.   2,668    375,895 
MasterCard, Inc., Class A   2,400    834,552 
Microchip Technology, Inc.   6,450    453,112 
Microsoft Corp.   20,439    4,901,681 
NetApp, Inc.   2,600    156,156 
NortonLifeLock, Inc.   27,700    593,611 
NVIDIA Corp.   35,892    5,245,257 
Oracle Corp.   26,575    2,172,240 
Palo Alto Networks, Inc.(a)   200    27,908 
Paychex, Inc.   3,850    444,906 
QUALCOMM, Inc.   3,550    390,287 
Texas Instruments, Inc.   10,425    1,722,419 
Visa, Inc., Class A   7,150    1,485,484 
Workday, Inc., Class A(a)   7,780    1,301,827 
Zscaler, Inc.(a)   1,400    156,660 
         31,948,397 
Utilities 4.02%          
AES Corp.   7,000    201,320 
American Electric Power Co., Inc.   1,850    175,658 
Dominion Energy, Inc.   13,000    797,160 
           

See accompanying notes which are an integral part of these financial statements.

 

  37

 

 

SPIRIT OF AMERICA LARGE CAP VALUE FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Shares   Market Value 
Utilities (cont.)          
Duke Energy Corp.   2,000   $205,980 
Edison International   2,600    165,412 
NextEra Energy, Inc.   28,625    2,393,050 
UGI Corp.   1,000    37,070 
WEC Energy Group, Inc.   10,100    946,976 
         4,922,626 
Total Common Stocks (Cost $70,603,991)        121,995,270 
           
Preferred Stocks 1.05%          
           
Financials 0.96%          
Annaly Capital Management, Inc., Series F, 6.95%   2,000    48,760 
Arch Capital Group Ltd., Series F, 5.45%   2,000    40,600 
Arch Capital Group Ltd., Series G, 4.55%   2,000    34,540 
Athene Holding Ltd., Series C, 6.38%   2,000    47,880 
Bank of America Corp., Series GG, 6.00%   4,000    95,680 
Bank of America Corp., Series HH, 5.88%   2,000    46,400 
Bank of America Corp., Series LL, 5.00%   2,000    38,900 
Bank of America Corp., Series SS, 4.75%   2,000    37,620 
Charles Schwab Corp. (The), Series J, 4.45%   2,000    37,000 
First Republic Bank, Series L, 4.25%   2,000    32,860 
First Republic Bank, Series N, 4.50%   2,000    34,520 
Globe Life, Inc., 4.25%   1,000    17,900 
JPMorgan Chase & Co., Series EE, 6.00%   2,000    49,520 
JPMorgan Chase & Co., Series JJ, 4.55%   2,000    37,220 
JPMorgan Chase & Co., Series LL 4.63%   6,000    113,040 
JPMorgan Chase & Co., Series MM, 4.20%   6,000    104,700 
KeyCorp, Series G, 5.63%   2,000    41,520 
Ladenburg Thalmann Financial Services, Inc., Series A, 8.00%   7,000    86,800 
Morgan Stanley, Series O, 4.25%   2,000    34,360 
Northern Trust Corp., Series E, 4.70%   1,360    26,928 
Prudential Financial, Inc., 4.13%   705    12,796 
Prudential Financial, Inc., 5.63%   2,000    48,960 
RenaissanceRE Holdings Ltd., Series G, 4.20%   150    2,434 
U.S. Bancorp, Series O, 4.50%   2,000    36,660 
Wells Fargo & Co., Series CC, 4.38%   4,000    68,120 
         1,175,718 
Utilities 0.09%          
Brookfield Infrastructure Partners LP, 5.00%   2,000    30,780 
DTE Energy Co., 4.38%   2,000    34,900 
Entergy Louisiana LLC, 4.88%   2,000    40,540 
         106,220 
Total Preferred Stocks (Cost $1,708,425)        1,281,938 
           
Total Investments — 100.60% (Cost $72,312,416)        123,277,208 
Liabilities in Excess of Other Assets — (0.60)%        (736,161)
NET ASSETS — 100.00%       $122,541,047 
           
(a)Non-income producing security.

 

See accompanying notes which are an integral part of these financial statements.

 

38 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND
SCHEDULE OF INVESTMENTS   |   DECEMBER 31, 2022

 

 

   Principal     
   Amount   Market Value 
Municipal Bonds 100.54%          
           
Arizona 1.37%          
City of Phoenix, AZ, General Obligation Unlimited, Callable 7/1/2026 @ 100, 5.00%, 7/1/2027  $500,000   $539,753 
           
California 7.07%          
California State Public Works Board, Revenue Bonds, Callable 11/1/2026 @ 100, 5.00%, 11/1/2029   600,000    653,857 
Los Angeles CA Department of Water & Power, Revenue Bonds, Callable 1/1/2029 @ 100, 5.25%, 7/1/2049   200,000    215,335 
Los Angeles Community College District, General Obligation Refunding Bonds Unlimited, Callable 8/1/2026 @ 100, 4.00%, 8/1/2038   500,000    503,651 
Regents of the University of California Medical Center Pooled Revenue, Revenue Bond, Callable 5/15/2026 @ 100, 4.00%, 5/15/2037   145,000    145,623 
San Francisco City & County Public Utilities Commission Water Revenue, Revenue Bonds, Callable 11/1/2030 @ 100, 5.00%, 11/1/2050   500,000    535,680 
San Francisco City & County Public Utilities Commission Water Revenue, Revenue Bonds Series 2020 A, Callable 4/1/2028 @ 100, 4.00%, 10/1/2043   100,000    98,181 
San Francisco Municipal Transportation Agency, Callable 3/1/2027 @ 100, 4.00%, 3/1/2046   200,000    194,130 
State of California, General Obligation Unlimited, Callable 8/1/2025 @ 100, 5.00%, 8/1/2029   250,000    264,458 
State of California, General Obligation Unlimited, Callable 9/1/2026 @ 100, 4.00%, 9/1/2036   175,000    177,673 
         2,788,588 
Connecticut 6.63%          
City of New Haven, CT, General Obligation Unlimited, Callable 8/15/2026 @ 100, 5.00%, 8/15/2036   230,000    242,210 
Connecticut Housing Finance Authority, Multi-Family Housing, Revenue Bonds, Callable 11/15/2025 @ 100, 3.25%, 11/15/2036   250,000    231,614 
Connecticut Housing Finance Authority, Revenue Bonds, Callable 5/15/2027 @ 100, 3.40%, 11/15/2037   25,000    23,434 
Connecticut State Health & Educational Facility Authority, Revenue Bonds, Callable 7/1/2026 @ 100, 5.00%, 7/1/2034   250,000    262,063 
Connecticut State Health & Educational Facility Authority, Revenue Bonds, Callable 7/1/2024 @ 100, 5.00%, 7/1/2034   100,000    101,812 
State of Connecticut Special Tax Revenue, Highway Improvements, Revenue Bonds, Callable 10/1/2023 @ 100, 5.00%, 10/1/2030   250,000    253,836 
State of Connecticut Special Tax Revenue, Public Improvements, Revenue Bonds, Callable 1/1/2023 @ 100, 5.00%, 1/1/2028   445,000    445,000 
State of Connecticut, General Obligation Unlimited, Callable 4/15/2027 @ 100, 5.00%, 4/15/2032   500,000    541,961 
State of Connecticut, General Obligation Unlimited, 5.00%, 6/15/2024   250,000    257,913 
University of Connecticut, University & College Improvements, Revenue Bonds, Callable 2/15/2024 @ 100, 5.00%, 2/15/2034   250,000    254,497 
         2,614,340 
District of Columbia 2.63%          
District of Columbia Housing Finance Agency, State Multi-Family Housing, Revenue Bonds, (Fannie Mae), 4.45%, 6/15/2031   320,000    320,510 
District of Columbia Water & Sewer Authority, Revenue Bonds, Callable 10/1/2029 @ 100, 4.00%, 10/1/2049   315,000    296,389 
District of Columbia Water & Sewer Authority, Revenue Bonds, Callable 4/1/2026 @ 100, 5.00%, 10/1/2036   250,000    263,175 
District of Columbia Water & Sewer Authority, Revenue Bonds, Callable 4/1/2026 @ 100, 5.00%, 10/1/2034   150,000    158,806 
         1,038,880 
           

See accompanying notes which are an integral part of these financial statements.

 

  39

 

 

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Principal     
   Amount   Market Value 
Florida 8.26%          
Central Florida Expressway Authority, Revenue Bonds, Callable 7/1/2026 @ 100, 4.00%, 7/1/2035  $150,000   $151,637 
City of Orlando, FL, Public Improvements, Revenue Bonds, Callable 10/1/2024 @ 100, 5.00%, 10/1/2046   1,000,000    1,028,420 
FSU Financial Assistance, Inc., State Single-Family Housing, Refunding Revenue Bonds, 5.00%, 10/1/2030   500,000    500,765 
Greater Orlando Aviation Authority, Port, Airport & Marina Improvements, Revenue Bonds, 5.00%, 10/1/2025   120,000    120,198 
Miami Dade County FL Water & Sewage System, Revenue Bonds, 4.00%, 10/1/2044   150,000    139,598 
Miami-Dade County Educational Facilities Authority, University & College Improvements, Revenue Bonds, (AMBAC), 5.25%, 4/1/2031   260,000    295,723 
School Board of Miami-Dade County (The), Certificates of Participation, Callable 2/1/2026 @ 100, 4.00%, 2/1/2033   1,000,000    1,022,435 
         3,258,776 
Georgia 1.43%          
Atlanta GA Water & Wastewater Revenue, Revenue Bonds, Callable 11/1/2029 @ 100, 3.00%, 11/1/2037   500,000    433,459 
Atlanta GA Water & Wastewater Revenue, Revenue Bonds, Callable 11/1/2027 @ 100, 5.00%, 11/1/2047   125,000    131,301 
         564,760 
Illinois 2.13%          
Illinois State Finance Authority, Revenue Bonds Series 2020 A, Callable 4/1/2030 @ 100, 4.00%, 4/1/2050   900,000    839,782 
           
Indiana 3.38%          
Indiana Finance Authority Wastewater Utility Revenue, Revenue Bonds, Callable 10/1/2026 @ 100, 5.00%, 10/1/2046   600,000    626,038 
Indiana Finance Authority Wastewater Utility Revenue, Revenue Bonds, Callable 10/1/2030 @ 100, 5.00%, 10/1/2050   500,000    529,530 
Indiana State Finance Authority Health Systems Revenue, Revenue Bonds, Callable 11/1/2025 @ 100, 4.00%, 11/1/2051   200,000    180,351 
         1,335,919 
Iowa 0.68%          
State of Iowa, Revenue Bonds, Callable 6/1/2026 @ 100, 5.00%, 6/1/2027   250,000    267,817 
           
Louisiana 0.25%          
Louisiana Local Government Environmental Facilities & Community Development Authority, Sewer Improvements, Revenue Bonds, Callable 2/1/2023 @ 100, 5.00%, 2/1/2035   100,000    100,140 
           
Maine 1.59%          
Maine Health & Higher Educational Facilities Authority, Revenue Bonds, Callable 7/1/2030 @ 100, 4.00%, 7/1/2045   385,000    348,245 
Maine State Housing Authority, State Single-Family Housing, Revenue Bonds, 3.60%, 11/15/2036   95,000    91,047 
Maine State Housing Authority, State Single-Family Housing, Revenue Bonds, Callable 11/15/2024 @ 100, 3.75%, 11/15/2044   100,000    89,662 
Maine State Housing Authority, State Single-Family Housing, Revenue Bonds, 3.45%, 11/15/2032   45,000    44,287 
Maine Turnpike Authority, Refunding Revenue Bonds, Callable 7/1/2025 @ 100, 5.00%, 7/1/2026   50,000    52,795 
         626,036 
           

See accompanying notes which are an integral part of these financial statements.

 

40 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Principal     
   Amount   Market Value 
Maryland 0.96%          
City of Baltimore MD, Water Projects, Revenue Bonds, Callable 7/1/2029 @ 100, 4.00%, 7/1/2049  $405,000   $380,003 
           
Massachusetts 4.65%          
Massachusetts Housing Finance Agency, Revenue Bonds, Callable 12/1/2025 @ 100, 3.25%, 12/1/2036   575,000    515,266 
Massachusetts Housing Finance Agency, Revenue Bonds, Callable 12/1/2026 @ 100, 3.75%, 12/1/2037   250,000    235,992 
Massachusetts Housing Finance Agency, Revenue Bonds, Callable 12/1/2027 @ 100, 3.25%, 12/1/2032   200,000    192,684 
Massachusetts Housing Finance Agency, Revenue Bonds, Callable 12/1/2026 @ 100, 3.55%, 12/1/2037   90,000    88,243 
Massachusetts Housing Finance Agency, Revenue Bonds, Callable 6/1/2026 @ 100, 3.15%, 12/1/2026   40,000    39,860 
Massachusetts Housing Finance Agency, State Multi-Family Housing, Revenue Bonds, 5.13%, 12/1/2039   65,000    65,038 
Massachusetts Housing Finance Agency, State Multi-Family Housing, Revenue Bonds, 4.85%, 12/1/2029   60,000    60,027 
Massachusetts School Building Authority, Revenue Bonds, Callable 2/15/2028 @ 100, 5.25%, 2/15/2048   500,000    531,422 
Massachusetts School Building Authority, Revenue Bonds, Callable 8/15/2025 @ 100, 5.00%, 8/15/2026   100,000    106,040 
         1,834,572 
Michigan 1.15%          
Michigan Public Educational Facilities Authority, School Improvements, Refunding Revenue Bonds, 6.00%, 12/1/2035   500,000    454,365 
           
Minnesota 1.50%          
Southern Minnesota Municipal Power Agency Power Supply System, Revenue Bonds, Callable 1/1/2026 @ 100, 5.00%, 1/1/2041   565,000    591,160 
           
Missouri 2.21%          
Health & Educational Facilities Authority of the State of Missouri, Healthcare, Hospital & Nursing Home Improvements, Revenue Bonds, (OID), Callable 11/15/2024 @ 100, 4.00%, 11/15/2045   500,000    461,190 
Health & Educational Facilities Authority of the State of Missouri, Healthcare, Hospital & Nursing Home Improvements, Revenue Bonds, (OID), 3.75%, 11/15/2039   100,000    91,500 
Missouri State Health & Educational Facilities Authority, Health Facilities Revenue. Revenue Bonds, Callable 11/15/2027 @ 100, 4.00%, 11/15/2049   360,000    318,219 
         870,909 
Nevada 1.85%          
Nevada System of Higher Education, Certificates of Participation, Callable 7/1/2026 @ 100, 4.00%, 7/1/2027   700,000    729,154 
           
New Jersey 3.36%          
Borough of Seaside Heights, NJ, General Obligation Unlimited, Callable 4/1/2025 @ 100, 4.00%, 4/1/2026   125,000    128,472 
Hudson County Improvement Authority, Refunding Revenue Bonds, (AGM), 5.40%, 10/1/2025   150,000    160,593 
New Jersey Economic Development Authority, School Improvements, Refunding Revenue Bonds, Callable 3/1/2023 @ 100, 5.00%, 3/1/2031   50,000    50,146 
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, (OID), 5.00%, 7/1/2027   15,000    15,011 
           

See accompanying notes which are an integral part of these financial statements.

 

  41

 

 

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Principal     
   Amount   Market Value 
New Jersey (cont.)          
New Jersey Housing & Mortgage Finance Agency, Revenue Bonds, Callable 11/1/2025 @ 100, 3.50%, 11/1/2036  $500,000   $474,123 
New Jersey Housing & Mortgage Finance Agency, Revenue Bonds, Callable 11/1/2025 @ 100, 3.90%, 11/1/2050   175,000    155,599 
New Jersey St Transportation Trust Fund Authority, Revenue Bonds, Callable 12/15/2030 @ 100, 4.00%, 6/15/2045   100,000    87,449 
State of New Jersey, Public Improvements, General Obligation Unlimited, Callable 6/1/2025 @ 100, 4.00%, 6/1/2034   250,000    253,830 
         1,325,223 
New York 19.72%          
City of New York NY, General Obligation Unlimited, Callable 4/1/2028 @ 100, 5.00%, 4/1/2040   305,000    322,591 
City of New York NY, General Obligation Unlimited, Callable 10/1/2029 @ 100, 5.00%, 10/1/2039   145,000    155,112 
City of New York NY, General Obligation Unlimited, Callable 3/1/2030 @ 100, 5.00%, 3/1/2043   150,000    158,503 
City of New York NY, General Obligation Unlimited, Callable 4/1/2028 @ 100, 5.00%, 4/1/2043   195,000    205,277 
Hudson Yards Infrastructure Corp., Revenue Bonds Series 2017 A, Callable 2/15/2027 @ 100, 4.00%, 2/15/2044   575,000    531,806 
Metropolitan Transportation Authority, Refunding Revenue Bonds, 5.25%, 11/15/2028   50,000    51,016 
Metropolitan Transportation Authority, Refunding Revenue Bonds, Callable 11/15/2027 @ 100, 5.00%, 11/15/2037   250,000    266,648 
Metropolitan Transportation Authority, Revenue Bonds, Callable 11/15/2027 @ 100, 5.00%, 11/15/2035   250,000    269,664 
Metropolitan Transportation Authority, Revenue Bonds, 5.00%, 11/15/2028   250,000    261,251 
Metropolitan Transportation Authority, Transit Improvements, Refunding Revenue Bonds, 5.00%, 11/15/2028   250,000    263,494 
Metropolitan Transportation Authority, Transit Improvements, Revenue Bonds, Callable 5/15/2023 @ 100, 5.00%, 11/15/2033   100,000    100,236 
New York City Housing Development Corp., Revenue Bonds, Callable 2/1/2026 @ 100, 3.50%, 11/1/2032   150,000    149,491 
New York City Housing Development Corp., Revenue Bonds, Callable 11/1/2025 @ 100, 3.60%, 11/1/2031   250,000    250,643 
New York City Housing Development Corp., Revenue Bonds, Callable 5/1/2025 @ 100, 3.10%, 11/1/2032   250,000    235,936 
New York City Transitional Finance Authority, 5.00%, 8/1/2023   25,000    25,307 
New York City Transitional Finance Authority, 5.00%, 8/1/2023   75,000    75,813 
New York City Transitional Finance Authority Building Aid Revenue, Public Improvements, Revenue Bonds, (State Aid Withholding), Callable 1/15/2025 @ 100, 5.00%, 7/15/2027   250,000    260,932 
New York City Transitional Finance Authority Building Aid Revenue, Revenue Bonds, 5.00%, 7/15/2031   250,000    265,569 
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Callable 5/1/2027 @ 100, 4.00%, 5/1/2044   300,000    282,408 
New York City Transitional Finance Authority Future Tax Secured Revenue, Public Improvements, Revenue Bonds, Callable 8/1/2025 @ 100, 5.00%, 8/1/2027   25,000    26,408 
New York City Transitional Finance Authority Future Tax Secured Revenue, Public Improvements, Revenue Bonds, Callable 8/1/2026 @ 100, 4.00%, 8/1/2035   100,000    101,623 
New York City Transitional Finance Authority Future Tax Secured Revenue, Public Improvements, Revenue Bonds Series 2016 A-1, 5.00%, 8/1/2024   100,000    103,549 
New York City Water & Sewer System, Revenue Bonds, Callable 6/15/2027 @ 100, 5.00%, 6/15/2032   100,000    109,197 
           

See accompanying notes which are an integral part of these financial statements.

 

42 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Principal     
   Amount   Market Value 
New York (cont.)          
New York City Water & Sewer System, Revenue Bonds, Callable 6/15/2028 @ 100, 5.00%, 6/15/2049  $500,000   $523,580 
New York State Dormitory Authority, Refunding Revenue Bonds, (State Aid Withholding), 3.25%, 4/1/2031   280,000    280,059 
New York State Dormitory Authority, Revenue Bonds, 4.75%, 10/1/2040   5,000    5,003 
New York State Dormitory Authority, Revenue Bonds, Callable 7/1/2025 @ 100, 5.00%, 7/1/2037   135,000    142,545 
New York State Dormitory Authority, Revenue Bonds, Callable 3/15/2028 @ 100, 5.00%, 3/15/2043   250,000    262,354 
New York State Thruway Authority, Revenue Bonds, Callable 1/1/2026 @ 100, 4.00%, 1/1/2037   100,000    98,402 
New York, NY, General Obligation Unlimited, Callable 8/1/2029 @ 100, 5.00%, 8/1/2043   500,000    526,633 
Port Authority of New York & New Jersey, Revenue Bonds, Callable 11/15/2027 @ 100, 5.00%, 11/15/2030   250,000    276,173 
Port Authority of New York & New Jersey, Revenue Bonds, Callable 11/15/2027 @ 100, 5.00%, 11/15/2037   250,000    267,651 
Triborough Bridge & Tunnel Authority, Revenue Bonds, 5.00%, 11/15/2027   100,000    106,602 
Triborough Bridge & Tunnel Authority, Revenue Bonds, Callable 5/15/2031 @ 100, 5.00%, 11/15/2051   125,000    132,189 
Triborough Bridge & Tunnel Authority, Revenue Bonds, 5.00%, 11/15/2023   100,000    101,802 
Triborough Bridge & Tunnel Authority, Revenue Bonds, Callable 11/15/2025 @ 100, 5.00%, 11/15/2040   310,000    322,218 
Triborough Bridge & Tunnel Authority, Revenue Bonds, Callable 11/15/2025 @ 100, 5.00%, 11/15/2035   250,000    261,938 
         7,779,623 
North Carolina 0.52%          
University of North Carolina at Charlotte (The), Revenue Bonds, Callable 10/1/2027 @ 100, 4.00%, 10/1/2037   100,000    99,674 
University of North Carolina at Charlotte (The), University & College Improvements, Revenue Bonds, Callable 4/1/2025 @ 100, 5.00%, 4/1/2040   100,000    105,112 
         204,786 
North Dakota 0.25%          
City of Bismarck, ND, Sanitary Sewer Revenue, Revenue Bonds, Callable 5/1/2025 @ 100, 3.00%, 5/1/2029   100,000    100,341 
           
Pennsylvania 11.65%          
Allegheny County PA Hospital, Development Authority, Revenue Bonds, Callable 4/1/2028 @ 100, 4.00%, 4/1/2044   150,000    136,398 
Chester County Health and Education, Revenue Bonds, Callable 9/1/2030 @ 100, 4.00%, 9/1/2050   500,000    444,135 
City of Philadelphia, PA Water & Wastewater Revenue, Revenue Bonds Series 2021 C, Callable 10/1/2031 @ 100, 5.00%, 10/1/2046   500,000    530,870 
City of Philadelphia, PA Water & Wastewater Revenue, Revenue Bonds Series 2021 C, Callable 10/1/2031 @ 100, 4.00%, 10/1/2051   500,000    451,018 
Commonwealth Financing Authority, Tobacco Master Settlement Payment Revenue, Revenue Bonds, Callable 6/1/2028 @ 100, 4.00%, 6/1/2039   250,000    246,262 
Lehigh County PA General Purpose Authority Hospital Revenue, Revenue Bonds, Callable 7/1/2029 @ 100, 4.00%, 7/1/2049   500,000    436,259 
Pennsylvania Higher Educational Facilities Authority, Hospital Improvements, Revenue Bonds, 5.00%, 5/1/2037   100,000    89,408 
Pennsylvania Higher Educational Facilities Authority, Hospital Improvements, Revenue Bonds, 5.00%, 5/1/2042   100,000    84,493 
           

See accompanying notes which are an integral part of these financial statements.

 

  43

 

 

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Principal     
   Amount   Market Value 
Pennsylvania (cont.)          
Pennsylvania Higher Educational Facilities Authority, Hospital Improvements, Revenue Bonds, (OID), 4.00%, 5/1/2032  $100,000   $87,234 
Pennsylvania Housing Finance Agency, Revenue Bonds, Callable 4/1/2027 @ 100, 3.65%, 10/1/2042   100,000    88,581 
Pennsylvania State Economic Development Financing Authority, Revenue Bonds Series 2017 A, Callable 11/15/2027 @ 100, 4.00%, 11/15/2047   400,000    350,330 
Pennsylvania State University, Revenue Bonds, Callable 9/1/2026 @ 100, 5.00%, 9/1/2034   190,000    204,130 
Pennsylvania State University, Revenue Bonds, Callable 9/1/2026 @ 100, 5.00%, 9/1/2035   125,000    134,161 
Pennsylvania State University, Revenue Bonds, Callable 9/1/2026 @ 100, 5.00%, 9/1/2036   100,000    107,113 
Pennsylvania Turnpike Commission, Revenue Bonds, Callable 12/1/2025 @ 100, 5.00%, 12/1/2045   500,000    508,096 
Pennsylvania Turnpike Commission, Revenue Refunding Bonds Series 2005 A, 5.25%, 7/15/2028   150,000    169,081 
Philadelphia PA Water & Wastewater Revenue, Revenue Bonds, Callable 11/1/2030 @ 100, 5.00%, 11/1/2045   500,000    528,829 
         4,596,398 
South Dakota 0.73%          
South Dakota Housing Development Authority, Revenue Bonds, Callable 11/1/2025 @ 100, 2.45%, 5/1/2027   250,000    242,988 
South Dakota Housing Development Authority, Revenue Bonds, Callable 11/1/2025 @ 100, 3.13%, 11/1/2036   45,000    44,018 
         287,006 
Tennessee 0.90%          
City of Memphis, TN, Callable 4/1/2024 @ 100, 5.00%, 4/1/2044   80,000    81,278 
City of Memphis, TN, 5.00%, 4/1/2044   20,000    20,525 
Metropolitan Government of Nashville & Davidson County Convention Center Authority, Public Improvements, Revenue Bonds, 5.00%, 7/1/2026   200,000    200,332 
Tennessee Housing Development Agency, Revenue Bonds, Callable 1/1/2027 @ 100, 3.40%, 7/1/2037   55,000    53,163 
         355,298 
Texas 12.93%          
Austin TX Electric Utility System Revenue, Revenue Bonds Series 2019 B, Callable 11/15/2029 @ 100, 5.00%, 11/15/2049   500,000    527,068 
City of Houston, TX, Refunding Revenue Bonds, Callable 3/1/2029 @ 100, 4.00%, 3/1/2049   500,000    458,744 
City Public Service Board of San Antonio, TX, Revenue Bonds, Callable 8/1/2026 @ 100, 5.00%, 2/1/2032   250,000    267,860 
Clifton Higher Education Finance Corp., School Improvements, Refunding Revenue Bonds, 4.00%, 8/15/2044   500,000    485,531 
Comal Independent School District, Unlimited Tax School Building Bonds, Callable 2/1/2026 @ 100, 4.00%, 2/1/2034   250,000    256,276 
Harris County Cultural Education Facilities Finance Corp., Revenue Bonds, Callable 5/15/2026 @ 100, 4.00%, 11/15/2030   130,000    133,146 
North Texas Tollway Authority Revenue, Revenue Bonds, Series 2017 A, Callable 1/1/2028 @ 100, 4.00%, 1/1/2043   470,000    442,592 
San Antonio Public Facilities Corp., Public Improvements, Refunding Revenue Bonds, (OID), 4.00%, 9/15/2042   250,000    238,462 
San Antonio Water System, Refunding Revenue Bonds, Callable 11/15/2029 @ 100, 5.00%, 5/15/2034   190,000    213,226 
San Antonio Water System, Revenue Bonds Series 2020 A, Callable 5/15/2030 @ 100, 5.00%, 5/15/2050   205,000    216,870 
Texas Public Finance Authority, Revenue Bonds, Callable 12/1/2026 @ 100, 4.00%, 12/1/2031   200,000    208,026 
Texas State Water Development Board, Revenue Bonds Series 2019 A, Callable 10/15/2029 @ 100, 4.00%, 10/15/2037   500,000    507,060 
           

See accompanying notes which are an integral part of these financial statements.

 

44 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA MUNICIPAL TAX FREE BOND FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Principal     
   Amount   Market Value 
Texas (cont.)          
Texas State Water Development Board, Revenue Bonds, Callable 10/15/2028 @ 100, 5.00%, 4/15/2049  $450,000   $474,735 
Texas State Water Development Board, Revenue Bonds Series 2019 A, Callable 10/15/2029 @ 100, 4.00%, 10/15/2054   500,000    474,593 
White Oak, TX, Independent School District, Unlimited Tax School Building Bonds, Callable 2/15/2027 @ 100, 4.00%, 2/15/2029   190,000    197,602 
         5,101,791 
Utah 1.31%          
Utah County Utah Hospital Revenue IHC Health Services, Revenue Bonds, Callable 5/15/2026 @ 100, 5.00%, 5/15/2050   500,000    517,051 
           
Vermont 0.57%          
Vermont Housing Finance Agency, State Multi-Family Housing, Revenue Bonds, 3.75%, 8/15/2037   225,000    225,021 
           
Virginia 0.65%          
Virginia State Resource Authority Infrastructure, Revenue Bonds, Callable 11/1/2025 @ 100, 4.00%, 11/1/2033   75,000    76,725 
Virginia State Resource Authority Infrastructure, Revenue Bonds, Pre-Refunded, Callable 11/1/2025 @ 100, 4.00%, 11/1/2033   175,000    181,664 
         258,389 
Wisconsin 0.21%          
Wisconsin Housing & Economic Development Authority, State Multi- Family Housing, Revenue Bonds, (OID), 5.63%, 11/1/2035   80,000    81,497 
           
Total Municipal Bonds (Cost $42,818,720)        39,667,378 
           
Total Investments — 100.54% (Cost $42,818,720)        39,667,378 
Liabilities in Excess of Other Assets — (0.54)%        (211,461)
NET ASSETS — 100.00%       $39,455,917 
           

AGM — Assured Guaranty Municipal Corp.

 

AMBAC — American Municipal Bond Assurance Corp.

 

OID — Original Issue Discount

 

See accompanying notes which are an integral part of these financial statements.

 

  45

 

 

SPIRIT OF AMERICA INCOME FUND
SCHEDULE OF INVESTMENTS   |   DECEMBER 31, 2022

 

   Shares   Market Value 
Common Stocks 13.06%          
           
Communications 0.50%          
Verizon Communications, Inc.   10,000   $394,000 
Warner Bros. Discovery, Inc.(a)   19    180 
         394,180 
Consumer Staples 1.29%          
Philip Morris International, Inc.   10,000    1,012,100 
           
Energy 7.51%          
Chevron Corp.   6,500    1,166,685 
Enbridge, Inc.   25,000    977,500 
Kinder Morgan, Inc.   40,000    723,200 
Phillips 66   6,000    624,480 
TC Energy Corp.   15,000    597,900 
Valero Energy Corp.   3,000    380,580 
Williams Companies, Inc. (The)   42,500    1,398,250 
         5,868,595 
Financials 0.67%          
Blackstone Group, Inc. (The), Class A   3,750    278,213 
Blackstone Mortgage Trust, Inc., Class A   11,565    244,831 
         523,044 
Health Care 1.45%          
AbbVie, Inc.   7,000    1,131,270 
           
Real Estate 1.24%          
City Office REIT, Inc.   10,000    83,800 
Hannon Armstrong Sustainable Infrastructure Capital, Inc.   10,000    289,800 
Medical Properties Trust, Inc.   5,000    55,700 
Physicians Realty Trust   2,000    28,940 
Simon Property Group, Inc.   3,000    352,440 
Spirit MTA REIT(a)(b)   2,000     
Spirit Realty Capital, Inc.   4,000    159,720 
         970,400 
Utilities 0.40%          
Duke Energy Corp.   3,000    308,970 
           
Total Common Stocks (Cost $8,617,058)        10,208,559 
           
Preferred Stocks 20.13%          
           
Financials 14.09%          
Affiliated Managers Group, Inc., 4.20%   10,000    147,400 
Affiliated Managers Group, Inc., 4.75%   10,000    168,200 
Allstate Corp. (The), Series I, 4.75%   20,000    400,200 
American Financial Group, Inc., 5.13%   15,000    309,150 
American Financial Group, Inc., 5.63%   20,000    430,200 
Athene Holding Ltd., Series C, 6.38%   10,000    239,400 
Athene Holding Ltd., Series D, 4.88%   20,000    340,800 
Bank of America Corp., Series HH, 5.88%   8,000    185,600 
Bank of America Corp., Series LL, 5.00%   20,000    389,000 
           

See accompanying notes which are an integral part of these financial statements.

 

46 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA INCOME FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Shares   Market Value 
Financials (cont.)          
Bank of America Corp., Series NN, 4.38%   10,000   $175,500 
Bank of America Corp., Series PP, 4.13%   16,667    278,339 
Bank of America Corp., Series QQ, 4.25%   10,000    169,500 
Brighthouse Financial, Inc., Series C, 5.38%   20,000    348,200 
Capital One Financial Corp., Series J, 4.80%   10,000    174,000 
Capital One Financial Corp., Series K, 4.63%   12,334    215,833 
CNO Financial Group, Inc., 5.13%   2,000    33,820 
Equitable Holdings, Inc., Series C, 4.30%   20,000    353,800 
First Republic Bank, Series J, 4.70%   20,000    371,000 
First Republic Bank, Series K, 4.13%   13,667    218,672 
First Republic Bank, Series L, 4.25%   10,000    164,300 
First Republic Bank, Series N, 4.50%   10,000    172,600 
Fulton Financial Corp., Series A, 5.13%   6,000    117,780 
Huntington Bancshares, Inc., Series H, 4.50%   10,000    169,600 
JPMorgan Chase & Co., Series EE, 6.00%   20,000    495,200 
JPMorgan Chase & Co., Series GG, 4.75%   20,000    385,200 
JPMorgan Chase & Co., Series JJ, 4.55%   10,000    186,100 
KeyCorp, Series G, 5.63%   15,000    311,400 
MetLife, Inc., Series F, 4.75%   25,000    488,750 
Morgan Stanley, Series O, 4.25%   10,000    171,800 
Northern Trust Corp., Series E, 4.70%   18,640    369,072 
Prudential Financial, Inc., 4.13%   3,530    64,069 
Prudential Financial, Inc., 5.63%   10,000    244,800 
Prudential Financial, Inc., 5.95%   10,000    242,200 
RenaissanceRE Holdings Ltd., Series G, 4.20%   500    8,115 
Selective Insurance Group, Inc., Series B, 4.60%   1,000    16,750 
State Street Corp., 5.35%   1,000    23,510 
Truist Financial Corp., Series R, 4.75%   16,334    311,816 
U.S. Bancorp, Series L, 3.75%   20,000    310,000 
U.S. Bancorp, Series M, 4.00%   10,000    162,400 
W.R. Berkley Corp., 5.10%   20,000    405,600 
Washington Federal, Inc., Series A, 4.88%   10,000    176,500 
Wells Fargo & Co., Series AA, 4.70%   20,000    367,800 
Wells Fargo & Co., Series CC, 4.38%   20,000    340,600 
Wells Fargo & Co., Series Z, 4.75%   20,000    366,400 
         11,020,976 
Real Estate 2.40%          
Brookfield Property Partners LP, Series A, 5.75%   7,500    101,475 
Diversified Healthcare Trust, 5.63%   26,660    287,928 
Federal Realty Investment Trust, Series C, 5.00%   7,500    151,350 
PS Business Parks, Inc., 5.20%   4,000    53,400 
PS Business Parks, Inc., 5.25%   10,000    134,500 
Public Storage, Series I, 4.88%   9,583    193,097 
Public Storage, Series L, 4.63%   10,000    191,100 
Public Storage, Series M, 4.13%   3,889    66,930 
Public Storage, Series N, 3.88%   20,000    325,400 
Public Storage, Series S, 4.10%   10,000    170,800 
Vornado Realty Trust, 5.40%   12,298    198,859 
         1,874,839 
Technology 0.12%          
Pitney Bowes, Inc., 6.70%   5,700    93,765 
           

See accompanying notes which are an integral part of these financial statements.

 

  47

 

 

SPIRIT OF AMERICA INCOME FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Shares   Market Value 
Utilities 3.52%          
BIP Bermuda Holdings I Ltd, 5.125%   10,000   $162,000 
Brookfield Infrastructure Partners LP, 5.00%   10,000    153,900 
Brookfield Infrastructure Partners LP, 5.13%   20,000    320,998 
DTE Energy Co., Series G, 4.38%   20,000    381,600 
Entergy Arkansas, Inc., 4.88%   20,000    402,000 
Entergy Louisiana LLC, 4.88%   10,000    202,700 
Entergy Mississippi, Inc., 4.90%   30,000    611,100 
Southern Co., 4.95%   21,000    412,440 
Southern Co., Series C, 4.20%   6,000    104,100 
         2,750,838 
Total Preferred Stocks (Cost $21,399,294)        15,740,418 
           
   Principal
Amount
     
Collateralized Mortgage Obligations 0.08%          
CHL Mortgage Pass-Through Trust, Series 2005-21, Class A27, 5.50%, 10/25/2035  $16,870    10,405 
CHL Mortgage Pass-Through Trust, Series 2005-21, Class A7, 5.50%, 10/25/2035   18,238    11,248 
Citicorp Mortgage Securities, Inc., Class 1A12, 5.00%, 2/25/2035   41,784    37,432 
           
Total Collateralized Mortgage Obligations (Cost $56,584)        59,085 
           
Corporate Bonds 10.73%          
Bank of New York Mellon Corp. (The), 4.63%, 12/20/2049   500,000    427,620 
Bank of New York Mellon Corp. (The), 3.70%, 3/20/2169   100,000    89,491 
Entergy Texas, Inc., 5.15%, 6/1/2045   100,000    88,537 
Exelon Generation Co. LLC, 5.60%, 6/15/2042(b)(c)   400,000    348,896 
Fifth Third Bancorp, 8.25%, 3/1/2038   250,000    311,905 
General Electric Co., 8.10%, 12/29/2049   765,000    754,437 
Goldman Sachs Group, Inc. (The), 6.45%, 5/1/2036   500,000    522,912 
Goldman Sachs Group, Inc. (The), 6.75%, 10/1/2037   850,000    907,852 
Hospitality Properties Trust, 4.50%, 3/15/2025   500,000    432,063 
Kinder Morgan Energy Partners LP, 6.50%, 2/1/2037   250,000    254,075 
MetLife, Inc., 9.25%, 4/8/2038(c)   1,500,000    1,749,455 
MetLife, Inc., 10.75%, 8/1/2039   1,000,000    1,330,780 
PECO Energy Capital Trust IV, 5.75%, 6/15/2033   1,000,000    901,367 
Valero Energy Corp., 8.75%, 6/15/2030   224,000    265,616 
           
Total Corporate Bonds (Cost $8,846,001)        8,385,006 
           

See accompanying notes which are an integral part of these financial statements.

 

48 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA INCOME FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Principal
Amount
   Market Value 
Municipal Bonds 57.38%          
           
Alabama 2.29%          
Health Care Authority for Baptist Health (The), Refunding Revenue Bonds, 5.50%, 11/15/2043  $2,000,000   $1,789,611 
           
Arizona 0.51%          
Arizona School Facilities Board, School Improvements, Certificates of Participation, 6.00%, 9/1/2027   225,000    231,582 
Phoenix Arizona Civic Improvement Corp. Excise Tax Revenue, Revenue Bonds, Callable 7/1/2030 @ 100, 2.70%, 7/1/2045   250,000    167,033 
         398,615 
California 5.32%          
Alhambra Unified School District, University & College Improvements, General Obligation Unlimited, 6.70%, 2/1/2026   465,000    482,312 
California State University, Revenue Bonds Series 2020 B, Callable 5/1/2030 @ 100, 3.07%, 11/1/2042   50,000    37,005 
City & County of San Francisco, CA, General Obligation Unlimited, 6.26%, 6/15/2030   450,000    483,296 
County of San Bernardino, CA, Refunding Revenue Bonds, 6.02%, 8/1/2023   45,000    45,240 
Peralta Community College District, Refunding Revenue Bonds, 6.91%, 8/1/2025   500,000    516,431 
Peralta Community College District, Refunding Revenue Bonds, 7.31%, 8/1/2031   310,000    330,378 
San Bernardino City Unified School District, School Improvements, Certificates of Participation, (AGM) (OID), 8.05%, 2/1/2023   1,000,000    1,001,857 
San Bernardino City Unified School District, School Improvements, Certificates of Participation, (AGM) (OID), 8.25%, 2/1/2026   500,000    537,981 
University of California Revenues, Revenue Bonds, Callable 5/15/2030 @ 100, 6.30%, 5/15/2050   260,000    271,823 
University of California Revenues, Revenue Bonds, 4.13%, 5/15/2045   250,000    214,208 
University of California, University & College Improvements, Refunding Revenue Bonds, 3.66%, 5/15/2027   250,000    236,793 
         4,157,324 
Colorado 0.71%          
Colorado Mesa University, University & College Improvements, Build America Revenue Bonds, (State Higher Education Intercept Program), 6.75%, 5/15/2042   500,000    557,620 
           
Connecticut 0.38%          
State of Connecticut, General Obligation Unlimited, 5.85%, 3/15/2032   280,000    295,914 
           
Florida 4.29%          
City of Miami Gardens, FL, Public Improvements, Build America Bonds, Certificates of Participation, 7.17%, 6/1/2026   875,000    908,222 
City of Tallahassee, FL, Utility System Revenue, Build America Revenue Bonds, 5.22%, 10/1/2040   300,000    293,533 
County of Miami-Dade, FL Transit System, Transit Improvements, Build America Revenue Bonds, 5.53%, 7/1/2032   500,000    509,421 
County of Miami-Dade, FL, Port, Airport & Marina Improvements, Build America Revenue Bonds, (AGM) (OID), 7.50%, 4/1/2040   1,000,000    1,186,214 
County of Miami-Dade, FL, Recreational Facility Improvements, Revenue Bonds, (AGM), 7.08%, 10/1/2029   250,000    278,233 
Town of Miami Lakes, FL, Public Improvements, Build America Revenue Bonds, 7.59%, 12/1/2030   150,000    170,415 
         3,346,038 
Georgia 3.16%          
Cobb Marietta Georgia Coliseum, Revenue Bonds, Callable 1/1/2026 @ 100, 4.50%, 1/1/2047   100,000    91,274 
           

See accompanying notes which are an integral part of these financial statements.

 

  49

 

 

SPIRIT OF AMERICA INCOME FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Principal
Amount
   Market Value 
Georgia (cont.)          
Municipal Electric Authority of Georgia, Electric Lights & Power Improvements, Build America Revenue Bonds, 7.06%, 4/1/2057  $1,422,000   $1,443,564 
State of Georgia, Public Improvements, General Obligation Unlimited, Callable 2/1/2024 @ 100, 3.84%, 2/1/2032   1,000,000    932,705 
         2,467,543 
Hawaii 0.59%          
State of Hawaii, General Obligation Unlimited, Callable 10/1/2025 @ 100, 4.05%, 10/1/2032   495,000    462,254 
           
Idaho 0.51%          
Idaho Water Resource Board, Water Utility Improvements, Revenue Bonds, (OID), 5.25%, 9/1/2024   400,000    400,077 
           
Illinois 2.16%          
City of Chicago, IL Waterworks Revenue, Water Utility Improvements, Build America Revenue Bonds, 6.74%, 11/1/2040   250,000    273,144 
Village of Glenwood, IL, Public Improvements, Build America Bonds, General Obligation Unlimited, (AGM), 7.03%, 12/1/2028   1,330,000    1,419,191 
         1,692,335 
Indiana 2.41%          
Anderson School Building Corp., Refunding Bonds, General Obligation Limited, Callable 7/5/2023 @ 100, 3.95%, 7/5/2029   1,000,000    942,080 
Anderson School Building Corp., Refunding Bonds, General Obligation Limited, (OID), Callable 7/5/2023 @ 100, 3.75%, 7/5/2028   1,000,000    943,075 
         1,885,155 
Kansas 0.30%          
Wyandotte County Unified School District No. 500 Kansas City, General Obligation Unlimited Series 2020 B, Callable 9/1/2030 @ 100, 3.17%, 9/1/2046   330,000    234,043 
           
Kentucky 0.39%          
Kentucky State Property & Building Commission, Economic Improvements, University & College Improvements, Build America Revenue Bonds, 5.37%, 11/1/2025   305,000    306,594 
           
Louisiana 0.09%          
East Baton Rouge Parish, LA Sewerage Commission, Revenue Refunding Bonds Series 2020 B, 2.44%, 2/1/2039   100,000    70,641 
           
Massachusetts 0.52%          
City of Worcester, MA, Pension Funding, General Obligation Limited, (AGM) (OID), 6.25%, 1/1/2028   125,000    127,435 
Massachusetts Health & Educational Facilities Authority, Refunding Revenue Bonds, 6.43%, 10/1/2035   250,000    266,969 
University of Massachusetts Building Authority, University & College Improvements, Build America Revenue Bonds, 6.57%, 5/1/2039   15,000    15,013 
         409,417 
Michigan 1.10%          
Comstock Park Public Schools, School Improvements, General Obligation Unlimited, 6.20%, 5/1/2024   200,000    200,203 
Michigan Finance Authority, School Improvements, Revenue Bonds, 6.38%, 11/1/2025   500,000    500,405 
Onsted Community Schools, School Improvements, General Obligation Unlimited, 5.90%, 5/1/2027   150,000    151,040 
           

See accompanying notes which are an integral part of these financial statements.

 

50 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA INCOME FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Principal
Amount
   Market Value 
Michigan (cont.)          
St. Johns Public Schools, General Obligation Unlimited, 6.65%, 5/1/2040  $5,000   $5,124 
         856,772 
Mississippi 0.92%          
Mississippi Development Bank, Highway Improvements, Build America Revenue Bonds, 6.59%, 1/1/2035   650,000    715,702 
           
Missouri 4.05%          
City of Kansas City, MO, Revenue Bonds, 7.83%, 4/1/2040   2,295,000    2,596,051 
Missouri Joint Municipal Electric Utility Commission, Electric Lights & Power Improvements, Build America Revenue Bonds, 7.73%, 1/1/2039   475,000    574,641 
         3,170,692 
Nebraska 0.26%          
Nebraska Public Power District, Electric Lights & Power Improvements, Build America Revenue Bonds, 5.32%, 1/1/2030   200,000    199,794 
           
Nevada 1.34%          
County of Washoe, NV, Public Improvements, Build America Revenue Bonds, 7.97%, 2/1/2040   590,000    724,320 
County of Washoe, NV, Public Improvements, Build America Revenue Bonds, 7.88%, 2/1/2040   250,000    320,694 
         1,045,014 
New Jersey 1.59%          
New Jersey Educational Facilities Authority, University & College Improvements, Build America Revenue Bonds, 6.19%, 7/1/2040   500,000    468,603 
Township of Brick, NJ, General Obligation Unlimited, 3.75%, 9/1/2028   780,000    774,254 
         1,242,857 
New York 5.00%          
City of New York, NY, Public Improvements, Build America Bonds, General Obligation Unlimited, 5.70%, 3/1/2027   145,000    149,082 
City of New York, NY, Public Improvements, Build America Bonds, General Obligation Unlimited, 5.21%, 10/1/2031   100,000    101,208 
County of Nassau, NY, Public Improvements, Build America Bonds, General Obligation Unlimited, 5.38%, 10/1/2024   500,000    502,558 
Long Island Power Authority, Revenue Bonds, (OID), 5.85%, 5/1/2041   195,000    201,465 
Metropolitan Transportation Authority, Revenue Bonds, 5.87%, 11/15/2039   200,000    193,047 
Metropolitan Transportation Authority, Transit Improvements, Build America Revenue Bonds, 6.59%, 11/15/2030   145,000    148,791 
Metropolitan Transportation Authority, Transit Improvements, Build America Revenue Bonds, 5.99%, 11/15/2030   125,000    129,496 
Metropolitan Transportation Authority, Transit Improvements, Build America Revenue Bonds, 6.20%, 11/15/2026   105,000    106,796 
New York City Industrial Development Agency, Recreational Facilities Improvements Revenue Bonds, (NATL-RE), 5.90%, 3/1/2046   580,000    569,760 
New York City Transitional Finance Authority Building Aid Revenue, School Improvements, Build America Revenue Bonds, (State Aid Withholding), 6.83%, 7/15/2040   500,000    561,111 
New York City Transitional Finance Authority Future Tax Secured Revenue, Public Improvements, Build America Revenue Bonds, 5.47%, 5/1/2036   815,000    816,933 
Port Authority of New York & New Jersey, Port, Airport & Marina Improvements, Revenue Bonds, 3.92%, 10/15/2028   115,000    107,094 
Triborough Bridge & Tunnel Authority, Revenue Bonds, Callable 11/15/2033 @ 100, 5.55%, 11/15/2040   150,000    151,211 
Western Nassau County Water Authority, Build America Revenue Bonds, 6.70%, 4/1/2040   150,000    165,038 
         3,903,590 
           

See accompanying notes which are an integral part of these financial statements.

 

  51

 

 

SPIRIT OF AMERICA INCOME FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Principal
Amount
   Market Value 
North Carolina 0.30%          
County of Cabarrus, NC, School Improvements, Revenue Bonds, 5.50%, 4/1/2026  $235,000   $235,663 
           
Ohio 3.40%          
American Municipal Power, Inc., Electric Lights & Power Improvements, Build America Revenue Bonds, 7.50%, 2/15/2050   500,000    601,482 
American Municipal Power, Inc., Revenue Bonds, 6.27%, 2/15/2050   480,000    508,482 
Cincinnati City School District, Refunding Bonds, Certificates of Participation, (OID), Callable 12/15/2024 @ 100, 4.00%, 12/15/2032   200,000    185,755 
County of Cuyahoga, OH, Hospital Improvements, Build America Revenue Bonds, 8.22%, 2/15/2040   1,000,000    1,153,854 
Springfield Local School District/Summit County, School Improvements, Build America Bonds, General Obligation Unlimited (School District Credit Program), 5.65%, 9/1/2031   200,000    200,188 
         2,649,761 
Pennsylvania 3.19%          
Pennsylvania Turnpike Commission Turnpike Revenue, Revenue Bonds, Callable 12/1/2029 @ 100, 3.58%, 12/1/2043   390,000    294,694 
Pennsylvania Turnpike Commission, Build America Revenue Bonds, 6.38%, 12/1/2037   520,000    574,962 
Philadelphia Authority for Industrial Development, Pension Funding, Revenue Bonds, (AGM) (OID), 6.35%, 4/15/2028   130,000    134,993 
Philadelphia Municipal Authority, Public Improvements, Revenue Bonds, 5.09%, 3/15/2028   500,000    484,441 
Sports & Exhibition Authority of Pittsburgh and Allegheny County, Recreational Facilities Improvements, Revenue Bonds, 7.04%, 11/1/2039   1,000,000    1,011,128 
         2,500,218 
Rhode Island 0.22%          
Narragansett Bay Commission, Revenue Bonds Series 2020 A, Callable 9/1/2030 @ 100, 2.92%, 9/1/2043   250,000    172,109 
           
Texas 1.65%          
Frisco Economic Development Corp., Public Improvements, Revenue Bonds, 4.20%, 2/15/2034   1,000,000    940,584 
Grand Parkway Transportation Corp., Revenue Bonds Series 2020 B, Callable 4/1/2030 @ 100, 3.24%, 10/1/2052   100,000    71,137 
Midland County Hospital District, Health, Hospital & Nursing Home Improvements, Build America Bonds, General Obligation Limited, 6.44%, 5/15/2039   260,000    285,675 
         1,297,396 
Virgin Islands 2.56%          
Virgin Islands Water & Power Authority- Electric System, Electric Lights & Power Improvements, Build America Revenue Bonds, (AGM), 6.65%, 7/1/2028   840,000    884,363 
Virgin Islands Water & Power Authority- Electric System, Electric Lights & Power Improvements, Build America Revenue Bonds, (AGM), 6.85%, 7/1/2035   1,000,000    1,118,750 
         2,003,113 
Virginia 6.39%          
Tobacco Settlement Financing Corp., Refunding Revenue Bonds, (OID), Callable 6/1/2025 @ 100, 6.71%, 6/1/2046   5,540,000    4,996,211 
           
Washington 1.67%          
City of Seattle, WA, Municipal Light & Power Revenue, Electric Lights & Power Improvements, Build America Revenue Bonds, (OID), 5.57%, 2/1/2040   250,000    252,620 
Douglas County Public Utility District No. 1, Electric Lights & Power Improvements, Revenue Bonds, 5.35%, 9/1/2030   250,000    253,404 
Public Utility District No. 1 of Cowlitz County, WA, Electric Lights & Power Improvements, Build America Revenue Bonds, 6.88%, 9/1/2032   500,000    555,623 
           

See accompanying notes which are an integral part of these financial statements.

 

52 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA INCOME FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Principal
Amount
   Market Value 
Washington (cont.)          
Snohomish County Public Utility District No. 1, Electric Lights & Power Improvements, Build America Revenue Bonds, (OID), 5.68%, 12/1/2040  $250,000   $252,730 
         1,314,377 
Wisconsin 0.11%          
State of Wisconsin, General Obligation Unlimited, 2.35%, 5/1/2031   100,000    82,661 
           
Total Municipal Bonds (Cost $45,149,860)        44,859,111 
           
Total Investments — 101.38% (Cost $84,068,797)        79,252,179 
Liabilities in Excess of Other Assets — (1.38)%        (1,076,123)
NET ASSETS — 100.00%       $78,176,056 
           
(a)Non-income producing security.

 

(b)Security is currently being valued according to the fair value procedures approved by the Board of Directors.

 

(c)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.

 

AGM — Assured Guaranty Municipal Corp.

 

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

 

OID — Original Issue Discount

 

See accompanying notes which are an integral part of these financial statements.

 

  53

 

 

SPIRIT OF AMERICA INCOME & OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS   |   DECEMBER 31, 2022

 

   Shares   Market Value 
Common Stocks 42.87%          
           
Communications 4.64%          
Alphabet, Inc., Class A(a)   5,000   $441,150 
Alphabet, Inc., Class C(a)   3,800    337,174 
Walt Disney Co. (The)(a)   1,000    86,880 
         865,204 
Consumer Discretionary 3.27%          
Amazon.com, Inc.(a)   3,500    294,000 
Home Depot, Inc. (The)   1,000    315,860 
         609,860 
Energy 6.76%          
Cheniere Energy Partners LP   2,300    130,801 
Energy Transfer LP   15,000    178,050 
Enterprise Products Partners LP   10,000    241,200 
Kinder Morgan, Inc.   7,500    135,600 
Magellan Midstream Partners LP   2,000    100,420 
MPLX LP   8,850    290,634 
Viper Energy Partners LP   3,200    101,728 
Williams Companies, Inc. (The)   2,500    82,250 
         1,260,683 
Financials 3.56%          
Blackstone Group, Inc. (The), Class A   5,500    408,045 
Blackstone Mortgage Trust, Inc., Class A   3,207    67,892 
Fifth Third Bancorp   3,400    111,554 
Starwood Property Trust, Inc.   4,175    76,528 
         664,019 
Health Care 3.47%          
AbbVie, Inc.   4,000    646,440 
           
Industrials 3.54%          
Caterpillar, Inc.   700    167,692 
Deere & Co.   1,150    493,074 
         660,766 
Materials 0.27%          
Dow, Inc.   1,000    50,390 
           
Real Estate Investment Trusts (REITs) 4.55%          
Prologis, Inc.   3,000    338,190 
Sun Communities, Inc.   714    102,102 
Terreno Realty Corp.   4,000    227,480 
Welltower, Inc.   1,160    76,038 
WP Carey, Inc.   1,340    104,721 
         848,531 
Technology 11.67%          
Apple, Inc.   3,250    422,272 
Crowdstrike Holdings, Inc., Class A(a)   350    36,852 
MasterCard, Inc., Class A   200    69,546 
Microsoft Corp.   2,000    479,640 
NVIDIA Corp.   7,500    1,096,050 
Visa, Inc., Class A   350    72,716 
         2,177,076 
           

See accompanying notes which are an integral part of these financial statements.

 

54 SPIRIT OF AMERICA

 

 

SPIRIT OF AMERICA INCOME & OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS (CONT.)   |   DECEMBER 31, 2022

 

   Shares   Market Value 
Utilities 1.14%          
American Electric Power Co., Inc.   1,155   $109,667 
Duke Energy Corp.   1,000    102,990 
         212,657 
Total Common Stocks (Cost $5,422,545)        7,995,626 
           
Exchange-Traded Funds 0.86%          
ProShares Short S&P 500 ETF   10,000    160,300 
           
Total Exchange-Traded Funds (Cost $152,650)        160,300 
           
Preferred Stocks 11.58%          
           
Financials 6.97%          
Affiliated Managers Group, Inc., 4.20%   5,000    73,700 
Arch Capital Group Ltd., Series G, 4.55%   5,000    86,350 
Bank of America Corp., Series QQ, 4.25%   5,000    84,750 
Bank of America Corp., Series SS, 4.75%   5,000    94,050 
Brighthouse Financial, Inc. Series D, 4.63%   6,000    91,200 
Capital One Financial Corp., Series K, 4.63%   6,166    107,899 
First Republic Bank, Series K, 4.13%   1,333    21,328 
Globe Life, Inc., 4.25%   1,000    17,900 
JPMorgan Chase & Co., Series JJ, 4.55%   5,000    93,050 
JPMorgan Chase & Co., Series LL 4.63%   6,000    113,040 
Morgan Stanley, Series O, 4.25%   5,000    85,900 
Prudential Financial, Inc., 4.13%   1,765    32,035 
RenaissanceRE Holdings Ltd., Series G, 4.20%   350    5,680 
Truist Financial Corp., Series R, 4.75%   8,166    155,889 
U.S. Bancorp, Series L, 3.75%   10,000    155,000 
Wells Fargo & Co., Series DD, 4.25%   5,000    82,350 
         1,300,121 
Real Estate 2.16%          
Hudson Pacific Properties Inc., Series C, 4.75%   6,000    75,180 
Public Storage, 5.05%   5,000    108,150 
Public Storage, Series M, 4.13%   1,944    33,456 
Public Storage, Series R, 4.00%   6,000    100,200 
Public Storage, Series S, 4.10%   5,000    85,400 
         402,386 
Utilities 2.45%