NPORT-EX 2 ballastnport.htm BALLAST SMALL/MID CAP ETF NPORT-EX

 

 

BALLAST SMALL/MID CAP ETF
SCHEDULE OF INVESTMENTS
December 31, 2020 (Unaudited)
 
COMMON STOCKS — 97.97%   Shares    Fair Value 
           
Communications — 3.15%          
IAC/InterActiveCorp.(a)   210   $39,764 
TripAdvisor, Inc.(a)   2,265    65,186 
         104,950 
Consumer Discretionary — 9.66%          
America's Car-Mart, Inc.(a)   575    63,158 
Cracker Barrel Old Country Store, Inc.(a)   215    28,363 
Darden Restaurants, Inc.   280    33,353 
Hanesbrands, Inc.   4,420    64,444 
PulteGroup, Inc.   1,465    63,171 
Wayside Technology Group, Inc.   3,640    69,524 
         322,013 
Consumer Staples — 2.77%          
J&J Snack Foods Corp.   215    33,405 
Sanderson Farms, Inc.   445    58,829 
         92,234 
Energy — 7.14%          
CNX Resources Corp.(a)   3,325    35,910 
Goodrich Petroleum Corp.(a)   5,520    55,697 
Solaris Oilfield Infrastructure, Inc., Class A   9,055    73,708 
Texas Pacific Land Trust   100    72,700 
         238,015 
Financials — 14.40%          
Capital Bancorp, Inc.(a)   5,235    72,923 
CIT Group, Inc.   1,815    65,159 
Essent Group Ltd.   690    29,808 
Everest Re Group Ltd.   270    63,204 
Federal Agricultural Mortgage Corp., Class C   890    66,083 
First Financial Bancorp   2,850    49,961 
MGIC Investment Corp.   5,175    64,946 
SVB Financial Group(a)   175    67,869 
         479,953 
Health Care — 3.78%          
Horizon Therapeutics PLC(a)   910    66,567 
iRadimed Corp.(a)   2,600    59,280 
         125,847 
Industrials — 14.12%          
Eastern Co. (The)   2,935    70,734 
frontdoor, Inc.(a)   1,320    66,277 
GrafTech International Ltd.   7,750    82,615 

 

See accompanying notes which are an integral part of this schedule of investments.

 
 

 

BALLAST SMALL/MID CAP ETF
SCHEDULE OF INVESTMENTS - continued
December 31, 2020 (Unaudited)
 
COMMON STOCKS — 97.97% - continued   Shares    Fair Value 
Industrials — 14.12% - continued          
IES Holdings, Inc.(a)   1,685   $77,577 
Landstar System, Inc.   350    47,131 
Lennox International, Inc.   215    58,904 
XPO Logistics, Inc.(a)   565    67,348 
         470,586 
Materials — 11.84%          
Eagle Materials, Inc.   655    66,384 
Huntsman Corp.   2,475    62,222 
Lydall, Inc.(a)   2,195    65,916 
Northern Technologies International Corp.   9,855    104,068 
UFP Technologies, Inc.(a)   2,060    95,996 
         394,586 
Real Estate — 8.00%          
EPR Properties(a)   1,670    54,275 
Lamar Advertising Company, Class A   780    64,912 
PotlatchDeltic Corp.   1,000    50,020 
STAG Industrial, Inc.   3,115    97,561 
         266,768 
Technology — 21.00%          
Amdocs Ltd.   935    66,320 
AstroNova, Inc.(a)   3,065    32,642 
Avid Technology, Inc.(a)   5,260    83,477 
Cerence, Inc.(a)   680    68,326 
Coherent, Inc.(a)   640    96,013 
F5 Networks, Inc.(a)   475    83,571 
FLIR Systems, Inc.   1,545    67,717 
Lumentum Holdings, Inc.(a)   715    67,782 
ON Semiconductor Corp.(a)   1,600    52,368 
Teradata Corp.(a)   3,635    81,678 
         699,894 
Utilities — 2.11%          
NRG Energy, Inc.   1,870    70,219 
           
Total Common Stocks (Cost $3,155,997)        3,265,065 
           
Total Investments — 97.97% (Cost $3,155,997)        3,265,065 
           
Other Assets in Excess of Liabilities — 2.03%        67,625 

 

See accompanying notes which are an integral part of this schedule of investments.

 
 

 

BALLAST SMALL/MID CAP ETF
SCHEDULE OF INVESTMENTS - continued
December 31, 2020 (Unaudited)
 
COMMON STOCKS — 97.97% - continued     Fair Value
       
     
NET ASSETS — 100.00%   $   3,332,690  
 

 

 

 

(a) Non-income producing security.

 

 

As of December 31, 2020, the net unrealized appreciation (depreciation) of investments for federal income tax purposes was as follows:

 

Gross unrealized appreciation  $137,917 
Gross unrealized depreciation   (28,849)
Net unrealized appreciation/(depreciation) on investments  $109,068 
Tax cost of investments  $3,155,997 

 

 

See accompanying notes which are an integral part of this schedule of investments.

 
 

Ballast Small/Mid Cap ETF

Related Notes to the Schedule of Investments

December 31, 2020

(Unaudited)

 

The Ballast Small/Mid Cap ETF (the “Fund”) is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles in the United States of America (“GAAP”).

 

Security Transactions and Related Income - The Fund follows industry practice and records security transactions on the trade date for financial reporting purposes. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Distributions received from investments in real estate investment trusts (“REITs”) that represent a return of capital or capital gain are recorded as a reduction of the cost of investment or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from the Fund’s investments in REITs are reported to the Fund after the end of the calendar year; accordingly, the Fund estimates these amounts for accounting purposes until the characterization of REIT distributions is reported. Estimates are based on the most recent REIT distributions information available. Withholding taxes on foreign dividends and related reclaims have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.

 

Securities Valuation and Fair Value Measurements - The Fund values its portfolio securities at fair value as of the close of regular trading on the New York Stock Exchange (the “NYSE”) (normally 4:00 p.m. Eastern time) on each business day the NYSE is open for business. Fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP establishes a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.

 

Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk (the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique). Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained and available from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

 

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.

 

·Level 1 – unadjusted quoted prices in active markets for identical investments and/or registered investment companies where the value per share is determined and published and is the basis for current transactions for identical assets or liabilities at the valuation date
·Level 2 – other significant observable inputs (including, but not limited to, quoted prices for an identical security in an inactive market, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
·Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments based on the best information available)

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy which is reported is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

 

Equity securities that are traded on any stock exchange are generally valued at the last quoted sale price on the security’s primary exchange. Lacking a last sale price, an exchange-traded security is generally valued at its last bid price. Securities traded in the NASDAQ over-the-counter market are generally valued at the NASDAQ Official

 
 

Ballast Small/Mid Cap ETF

Related Notes to the Schedule of Investments – continued

December 31, 2020

(Unaudited)

 

Closing Price. When using the market quotations and when the market is considered active, the security is classified as a Level 1 security. In the event that market quotations are not readily available or are considered unreliable due to market or other events, the Fund values its securities and other assets at fair value in accordance with policies established by and under the general supervision of the Board of Trustees of the Trust (the “Board”). Under these policies, the securities will be classified as Level 2 or 3 within the fair value hierarchy, depending on the inputs used.

 

In accordance with the Trust’s valuation policies, Ballast Asset Management, LP (the “Adviser”) is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. No single method exists for determining fair value, because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of a security being valued by the Adviser would be the amount that the Fund might reasonably expect to receive upon the current sale. Methods that are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market prices of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. Fair-value pricing is permitted if, in the Adviser’s opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a small number of quotations, a significant event occurs after the close of a market but before the Fund’s net asset value calculation that may affect a security’s value, or the Adviser is aware of any other data that calls into question the reliability of market quotations.

 

The following is a summary of the inputs used at December 31, 2020 in valuing the Fund’s investments:

 

      Valuation Inputs      
Assets  Level 1  Level 2  Level 3  Total
Common Stocks  $3,265,065   $—     $—     $3,265,065 
Total  $3,265,065   $—     $—     $3,265,065 

 

The Fund did not hold any investments at the end of the reporting period for which significant unobservable inputs (Level 3) were used in determining fair value; therefore, no reconciliation of Level 3 securities is included for this reporting period.