N-Q 1 e1748.htm

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES


811-22172
Investment Company Act file number


WORLD FUNDS TRUST
(Exact name of registrant as specified in charter)


8730 STONY POINT PARKWAY, SUITE 205, RICHMOND, VA 23235
(Address of principal executive offices) (Zip code)

The Corporation Trust Co., Corporation Trust Center
1209 Orange Street
Wilmington, DE 19801
(Name and address of agent for service)

With copy to:
The Law Offices of John H. Lively & Associates, Inc.
A member firm of the 1940 Act Law GroupTM
11300 Tomahawk Creek Parkway, Ste. 310
Leawood, KS 66211


(804) 267-7400
Registrant’s telephone number, including area code:

Date of fiscal year end: 4/30

Date of reporting period: 07/31/2015


ITEM 1. SCHEDULE OF INVESTMENTS

TOREADOR INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
July 31, 2015
(unaudited)
 
Number                  
of       % of   Fair  
Shares   Security Description   Net Assets   Value  
 
      COMMON STOCK   98.70 %        
                     
                     
      AUSTRALIA   4.36 %        
  313,876   Genworth Mortgage Insurance         $ 823,767  
  92,042   Newcrest Mining LTD*           760,454  
  103,244   Sims Metal Management LTD           716,010  
  259,474   TABCORP Holding LTD           922,569  
                   
                  3,222,800  
                   
                     
                     
      AUSTRIA   1.11 %        
  30,773   OMV AG           822,185  
                   
                     
                     
      BELGIUM   1.29 %        
  42,227   Delhaize Group Spon ADR           952,641  
                   
                     
                     
      BERMUDA   2.11 %        
  14,549   Jardine Matheson Holdings LTD           789,429  
  1,000,000   Skyworth Digital Holdings           768,804  
                   
                  1,558,233  
                   
                     
                     
      CANADA   5.50 %        
  19,265   Alimentation Couche-Tard           861,618  
  34,185   Genworth MI Canada Inc.           810,686  
  24,695   Home Capital Group Inc.           602,285  
  380,000   Kinross Gold Corp.           691,600  
  4,254   Valeant Pharmaceuticals International, Inc.           1,095,533  
                   
                  4,061,722  
                   
                     
                     
      CAYMAN ISLANDS   1.02 %        
  1,464,139   China Resources Cement           757,349  
                   
                     
                     
      DENMARK   1.20 %        
  31,921   Topdanmark A/S           885,004  
                   
                     
                     
      FINLAND   1.08 %        
  84,228   Stora Enso OYJ-R SHS           794,717  
                   
                     
                     
                     
      FRANCE   6.67 %        
  35,000   AXA SA           926,436  
  3,545   Iliad SA           844,708  
  5,419   LVMH Moet Hennessy Louis           1,020,208  
  7,615   Pernod Ricard SA           915,866  
  60,740   Peugeot SA           1,222,235  
                   
                  4,929,453  
                   
                     
                     
      GERMANY   6.29 %        
  4,026   Continental AG           903,818  
  16,482   Fresennius SE & Co KGAA           1,142,124  
  4,785   Muenchener Rueckver AG-R           882,905  
  9,414   Porsche Automobile Holding-P           711,111  
  33,536   Software AG           1,007,707  
                   
                  4,647,665  
                   
                     
                     
      GREAT BRITAIN   16.65 %        
  21,697   Berkeley Group Holdings           1,143,532  
  23,393   BP PLC Spons ADR           864,839  
  12,650   BT Group PLC           914,089  
  52,364   Capita Group PLC           1,068,214  
  200,410   Carillion PLC           1,084,157  
  53,725   Compass Group OLC           861,486  
  9,704   Imperial Tobacco GR Spon ADR           1,016,591  
  36,315   International Game Technology           719,037  


TOREADOR INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
July 31, 2015
(unaudited)
 
Number                  
of       % of   Fair  
Shares   Security Description   Net Assets   Value  
 
  268,677   Itv PLC           1,179,833  
  158,068   Lloyds Banking Group PLC           831,438  
  112,468   Meggitt PLC           817,264  
  18,425   Sabmiller PLC Spons ADR           966,299  
  95,521   Subsea 7 SA           839,509  
                   
                  12,306,288  
                   
                     
                     
      HONG KONG   4.92 %        
  2,600,000   CT Environmental Group           918,953  
  630,423   Guangdong Investment LTD           858,747  
  884,099   SINO Biopharmaceutical           1,026,391  
  1,300,000   WH Group Ltd           833,430  
                   
                  3,637,521  
                   
                     
                     
      IRELAND   1.31 %        
  5,021   Jazz Pharmaceuticals PLC           965,237  
                   
                     
                     
      ITALY   2.61 %        
  67,149   ACEA SPA           887,963  
  71,794   Finmeccanica SPA           1,038,863  
                   
                  1,926,826  
                   
                     
                     
      JAPAN   19.89 %        
  262,000   Aozora Bankk LTD           1,006,391  
  61,600   Astellas Pharma Inc.           928,076  
  128,000   Chiba Bank LTD           1,021,562  
  150,856   Fujitsu LTD           792,018  
  42,900   KDDI Corp.           1,090,675  
  145,700   Mitsubishi UFJ Financial Group Inc.           1,058,183  
  270,757   NEC Corp.           865,234  
  42,000   NH Foods LTD           1,021,869  
  32,800   NOK Corp.           962,137  
  66,100   Orix Corp.           988,406  
  156,900   Resona Holdings Inc.           863,760  
  432,000   Shinsei Bank, Ltd.           944,739  
  197,800   Sumitomo Mitsui Trust Holdings           919,087  
  117,135   Sumitomo Mitsui-Spons ADR           1,084,670  
  16,100   West Japan Railway Co.           1,157,480  
                   
                  14,704,287  
                   
                     
                     
      NETHERLANDS   4.97 %        
  20,884   Euronext NV*           957,365  
  9,531   Lyondellbasell Indu-CLASS A           894,294  
  36,082   Qiagen N.V.           1,009,574  
  15,771   Sensata Technologies Holding           809,368  
                   
                  3,670,601  
                   
                     
                     
      NEW ZEALAND   1.02 %        
  431,211   Air New Zealand LTD           753,847  
                   
                     
                     
      NORWAY   1.05 %        
  36,724   TGS Nopec Geophysical Co.           777,235  
                   
                     
                     
      SPAIN   2.45 %        
  28,391   ACS Actividades Cons Y S           956,595  
  67,972   Mediaset Espana Communicacion, SA           857,990  
                   
                  1,814,585  
                   
                     
                     
      SWEDEN   2.94 %        
  74,104   Axfood AB           1,264,915  
  148,221   Teliasonera AB           904,575  
                   
                  2,169,490  
                   


TOREADOR INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
July 31, 2015
(unaudited)
 
Number                  
of       % of   Fair
Shares   Security Description   Net Assets   Value
 
      SWITZERLAND   6.55 %        
  11,735   Adecco SA-REG           982,077  
  8,626   Novartis AG-ADR           894,948  
  26,503   Temenos Group AG-REG           974,921  
  21,089   Vontobel Holdings AG-REG           1,126,993  
  38,224   Swiss Re Ltd-Spon ADR           862,333  
                   
                  4,841,272  
                   
                     
      UNITED STATES   3.72 %        
  21,750   Ishares MSCI EAFE ETF           1,408,965  
  27,750   Vanguard FTSE All-World EX-U           1,343,378  
                   
                  2,752,343  
                   
                     
                     
      TOTAL COMMON STOCKS   98.70 %     72,951,301  
                   
                     
                     
                     
      TOTAL INVESTMENTS   98.70 %     72,951,301  
      Other assets, net of liabilities   1.30 %     963,479  
                 
      NET ASSSETS   100.00 %   $ 73,914,780  
                 

ADR - Security represented is held by the custodian bank in the form of American Depositary Receipts.

In accordance with U.S. GAAP, “fair value” is defined as the price that a fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. Various inputs are used in the value of a Fund’s investments. U.S. GAAP established a three-tier hierarchy of inputs to establish a classification of fiar value measurements for disclosure purposes. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 includes significant unobservable inputs (including the Fund’sown assumptions in determining fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments as of July 31, 2015:

             
    Level 1   Level 2   Level 3        
             
                        Significant        
              Other Significant   Unobservable        
     Quoted Prices   Observable Inputs   Inputs   Total
 
Common Stocks       $72,951,301         $0         $0         $72,951,301
Preferred Stocks       0         0         0         0
 
        $72,951,301         $0         $0         $72,951,301
 

Refer to the Fund’s Schedule of Investments for a listing of securities by security type and industry. The Fund held no Level 3 securities at any time during the period. There were no transfers into or out of Levels 1 and 2 during the period ended July 31, 2015.

At July 31, 2015, the cost of investment for Federal income tax purposes has been estimated since the final tax characteristics cannot be determined until fiscal year end. Cost of securities for Federal Income tax purpose is $71,483,012 and the related tax-based net unrealized appreciation (depreciation) consists of:

Gross unrealized apprection     $9,468,678  
Gross unrealized depreciation     (8,000,389 )
         
Net unrealized appreciation     $1,468,289  
         


TOREADOR CORE FUND
SCHEDULE OF INVESTMENTS
July 31, 2015
(unaudited)
 
Number                  
of     % of   Fair
Shares   Security Description Net Assets   Value
 
    COMMON STOCKS   90.60 %        
                   
    CONSUMER DISCRETIONARY   16.06 %        
15,244   AMC Networks Inc - Class A         $ 1,283,850  
42,000   Aramark           1,336,440  
26,036   Big Lots, Inc.           1,124,234  
16,736   CarMax, Inc.           1,079,639  
22,252   Choice Hotels International, Inc.           1,127,286  
22,263   Delphi Automotive PLC           1,738,295  
34,404   DSW Inc.           1,118,818  
12,785   Expedia, Inc.           1,552,610  
35,150   Johnson Controls, Inc.           1,601,434  
17,956   Kohl’s Corp.           1,101,062  
13,887   L Brands, Inc.           1,120,959  
17,109   Lowe’s Companies, Inc.           1,186,680  
17,320   Macy’s Inc.           1,196,119  
15,309   Marriott Internationa, Inc. - Class A           1,111,586  
7,257   O’Reilly Automotive, Inc.           1,743,930  
78,534   Penn National Gaming, Inc.           1,498,429  
24,866   Ross Stores, Inc.           1,321,877  
73,193   Staples, Inc.           1,076,669  
32,930   Target Corp.           2,695,321  
                 
                26,015,238  
                 
                   
    CONSUMER STAPLES   2.61 %        
8,723   Mead Johnson Nutrition co.           771,026  
38,785   Pilgrim’s Pride Corp.           839,307  
27,000   Walgreens Boots Alliance, Inc.           2,609,010  
                 
                4,219,343  
                 
                   
    ENERGY   3.33 %        
15,259   Cameron International Corp.           769,969  
45,530   PBF Energy, Inc.           1,437,382  
16,581   Tesoro Corp.           1,613,995  
23,988   Valero Energy Corp.           1,573,613  
                 
                5,394,959  
                 
                   
    FINANCIALS   22.84 %        
5,481   Alffliated Managers Group, Inc.           1,139,500  
15,986   Aflac, Inc.           1,023,903  
16,923   The Allstate Corp.           1,166,841  
22,214   American International Group, Inc.           1,424,362  
26,468   Aspen Insurance Holdings Ltd.           1,272,846  
416,872   Bank of America Corp.           7,453,671  
13,793   Capital One Financial Corp.           1,121,371  
63,150   Citigroup, Inc.           3,691,749  
17,019   Discover Financial Services           949,830  
19,363   Endurance Specialty Holdings Ltd.           1,345,535  
6,914   Everest Re Group Ltd.           1,266,092  
16,819   Hanover Insurance Group Inc.           1,359,816  
6,908   Jones Lang LaSalle Inc.           1,229,900  
26,398   JPMorgan Chase & Co.           1,809,055  
20,360   Lincoln National Corp.           1,146,675  
65,675   MetLife, Inc.           3,660,725  
12,316   Prudential Financial, Inc.           1,088,242  
48,900   Santander Consumer USA Holdings Inc.           1,182,402  
11,739   The Travelers Cos., Inc.           1,245,743  
31,171   Unum Group           1,117,169  
34,126   XL Group PLC           1,297,471  
                 
                36,992,897  
                 
                   
    HEALTH CARE   16.61 %        
18,111   AbbVie, Inc.           1,267,951  
13,017   Aetna, Inc.           1,470,530  
12,761   AmerisourceBergen Corp.           1,349,476  
7,541   Amgen, Inc.           1,331,665  


TOREADOR CORE FUND
SCHEDULE OF INVESTMENTS
July 31, 2015
(unaudited)
 
Number                  
of     % of   Fair
Shares   Security Description Net Assets   Value
 
9,749   Anthem, Inc.         $ 1,503,978  
3,969   Biogen Idec, Inc.           1,265,238  
7,686   C. R. Bard, Inc.           1,511,452  
11,850   CIGNA Corp.           1,707,111  
13,110   The Cooper Cos., Inc.           1,147,649  
20,675   Gilead Sciences, Inc.           2,436,756  
15,327   HCA Holdings, Inc.           1,425,564  
19,234   Health Net Inc.           1,285,985  
43,253   Hologic, Inc.           1,801,920  
7,080   Jazz Pharmaceuticals PLC           1,361,059  
15,245   Onmicare, Inc.           1,476,478  
7,024   The Cooper Companies, Inc.           1,243,248  
9,571   United Therapeutics Corp.           1,620,945  
27,624   VCA, Inc.           1,699,705  
                 
                26,906,711  
                 
                   
    INDUSTRIAL   8.31 %        
4,253   AMERCO           1,528,401  
40,000   American Airlines Group, Inc.           1,604,000  
18,329   Avis Budget Group, Inc.           796,028  
89,143   B/E Aerospace, Inc.           4,342,156  
54,618   Delta Air Lines, Inc.           2,421,762  
37,722   HD Supply Holdings, Inc.           1,350,448  
26,932   Trinity Industries, Inc.           788,030  
9,480   United Rentals, Inc.           635,065  
                 
                13,465,890  
                 
                   
    INFORMATION TECHOLOGY   17.72 %        
42,599   ARRIS Group, Inc.           1,317,161  
32,799   CDW Corp.           1,178,468  
44,509   CommScope Holdings co., Inc.           1,396,247  
28,935   Electronic Arts, Inc.           2,070,299  
31,351   Hewlett-Packard Co.           956,833  
147,305   Intel Corp.           4,264,480  
58,055   Jabil Circuit, Inc.           1,175,614  
285,000   Micron Technology, Inc.           5,275,350  
95,000   Microsoft Corp.           4,436,500  
54,916   Rovi Corp.           603,527  
18,400   Skyworks Solution, Inc.           1,760,328  
16,900   Tech Data Corp.           985,777  
16,676   Visa, Inc. - Class A           1,256,370  
54,670   The Western Union Co.           1,106,521  
83,082   Xerox Corp.           915,564  
                 
                28,699,038  
                 
                   
    MATERIALS   2.42 %        
109,500   Huntsman Corp.           2,080,500  
19,618   Lyondellbasell Industries NV - Class A           1,840,757  
                 
                3,921,257  
                 
                   
    UTILITIES   0.69 %        
30,643   UGI Corp.           1,119,695  
                 
                   
    TOTAL COMMON STOCKS           146,735,027  
                 


TOREADOR CORE FUND
SCHEDULE OF INVESTMENTS
July 31, 2015
(unaudited)
 
Number                  
of     % of   Fair
Shares   Security Description Net Assets   Value
 
    EXCHANGED TRADED FUND   5.30 %        
40,800   SPDR S&P 500 ETF Trust         $ 8,588,400  
                 
                   
    TOTAL EXCHANGE TRADED FUND           8,588,400  
                 
                   
    MONEY MARKET FUND   3.87 %        
6,260,578   Federated Treasury Obligations Fund 0.01%*           6,260,578  
                 
                   
    TOTAL MARKET FUND           6,260,578  
                 
                   
    CALL OPTIONS   0.18 %        
250,000   Intel/January 2016/Strike $30.00           295,000  
                 
                   
    TOTAL CALL OPTIONS           295,000  
                 
                   
    TOTAL INVESTMENTS   99.95 %     161,879,005  
    Other assets, net of liabilities   0.05 %     75,189  
               
    NET ASSETS   100.00 %   $ 161,954,194  
               

* Effective 7 day yield as of July 31, 2015.

ADR - Security represented is held by the custodian bank in the form of American Depositary Receipts.

In accordance with U.S. GAAP, “fair value” is defined as the price that a fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. Various inputs are used in determining the value of a Fund’s investments. U.S. GAAP established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments as of July 31, 2015:

             
    Level 1   Level 2   Level 3        
             
                        Significant        
              Other Significant   Unobservable        
     Quoted Prices   Observable Inputs   Inputs   Total
 
Common Stocks       $146,735,027         -         -         $146,735,027
Exchange Traded Funds       8,588,400         -         -         $8,588,400
Call Options       295,000         -         -         $295,000
Money Market       6,260,578         -         -         6,260,578
 
        $161,879,005         -         -         $161,879,005
 

Refer to the Fund’s Schedule of Investments for a listing of securities by security type and industry. The Fund held no Level 3 securities at any time during the period. There were no transfers into or out of Levels 1 and 2 during the period ended July 31, 2015.

At July 31, 2015 the cost of investments for Federal income tax purposes has been estimated since the final tax characteristics cannot be determined until fiscal year end. Cost of securities for Federal Income tax purpose is $133,065,187 and the related tax-based net unrealized appreciation (depreciation) consists of:

  Gross unrealized appreciation   $ 29,662,824  
  Gross unrealized depreciation     (7,109,583 )
         
  Net unrealized appreciation   $ 22,553,241  
         


TOREADOR EXPLORER FUND
SCHEDULE OF INVESTMENTS
July 31, 2015
(unaudited)
 
Number                  
of     % of   Fair
Shares   Security Description Net Assets   Value
 
    COMMON STOCKS   91.83 %        
                   
    CONSUMER DISCRETIONARY   13.45 %        
2,222   AMC Entertainment Holdings Inc. - Class A         $ 71,660  
3,443   American Axle & Manufacturing Holdings, Inc.           68,791  
778   Asbury Automotive Group Inc.           68,697  
2,550   Barnes & Noble, Inc.           67,040  
1,626   Big Lots, Inc.           70,211  
2,334   Diamond resorts International Inc.           73,148  
2,201   DSW Inc Class A           71,577  
3,755   Isle of Capri Casinos, Inc.           68,491  
1,508   Meritage Homes Corp.           68,011  
2,494   Rent-A-Center, Inc.           66,814  
3,594   Taylor Morrison Home Corp. "A"           69,185  
                 
                763,623  
                 
                   
    CONSUMER STAPLES   3.70 %        
1,292   Cal-Maine Foods, Inc.           69,975  
1,806   Fresh Del Monte Produce Inc.           71,373  
550   USANA Health Sciences, Inc.           68,558  
                 
                209,905  
                 
                   
    ENERGY   1.18 %        
6,291   Scorpio Tankers Inc.           67,243  
                 
                   
    FINANCIALS   22.53 %        
2,627   American Equity Investment Life Holding Co.           77,602  
2,562   Cash America International, Inc.           71,044  
11,949   Cowen Group Inc - Class A           67,512  
1,627   Encore Capital Group, Inc.           69,977  
1,799   First NBC Bank Holding Co.           68,722  
3,666   Flagstar Bancorp, Inc.           74,420  
2,837   Heritage Insurance Holdings, Inc.           70,131  
1,618   HFF Inc. - Class A           74,169  
2,958   Homestreet Inc.           66,880  
1,426   Marcus & Millichap, Inc.           73,068  
6,368   MGIC Investment Corp.           70,494  
3,087   National General Holdings Corp.           70,661  
3,893   NorthStar Asset Management Group Inc.           71,320  
1,127   PRA Group Inc.           71,621  
3,779   Radian Group Inc.           69,760  
2,607   Universal Insuance Holdings, Inc.           71,484  
2,664   Walker & Dunlop Inc.           63,803  
3,070   WisdomTree Investments, Inc.           76,443  
                 
                1,279,111  
                 
                   
    HEALTH CARE   16.48 %        
1,766   Air Methods Corp.           69,563  
1,463   Cambrex Corp.           72,053  
2,268   Catalent, Inc.           77,293  
503   Chemed Corp.           74,675  
2,062   Emergent BioSolutions, Inc.           67,695  
1,353   The Ensign Group, Inc.           69,165  
1,266   Hill-rom Holdings, Inc.           70,934  
1,625   INC Research Holdings Inc.           81,299  
827   LifePoint Health, Inc.           68,525  
1,727   PRA Health Sciences, Inc.           72,517  
1,831   Surgical Care Affiliates Inc.           69,615  
1,332   U.S. Physical Therapy, Inc.           70,410  
2,675   VWR Corp.           71,663  
                 
                935,407  
                 


TOREADOR EXPLORER FUND
SCHEDULE OF INVESTMENTS
July 31, 2015
(unaudited)
 
Number                  
of     % of   Fair
Shares   Security Description Net Assets   Value
 
    INDUSTRIAL   10.50 %        
1,595   Amrican Railcar Industries, Inc.         $ 63,720  
796   CEB Inc.           60,910  
1,129   Deluxe Corp.           72,741  
3,050   Hawaiian Holdings, Inc.           66,246  
1,086   Hyster-Yale Materials Handling, Inc.           73,490  
1,715   Matson Inc.           71,035  
2,757   TriNet Group, Inc.           74,108  
621   UniFirst Corp.           68,819  
3,297   Wabash National Corp.           45,301  
                 
                596,371  
                 
                   
    INFORMATION TECHOLOGY   16.19 %        
2,691   Advanced Energy Industries, Inc.           70,477  
2,102   Cirrus Logic, Inc.           69,387  
2,259   CSG Systems International, Inc.           70,255  
3,309   Endurance International Group Holdings, Inc.           66,875  
10,954   Harmonic Inc.           65,834  
2,143   Microsemi Corp.           70,590  
2,456   NeuStar, Inc. Class A           75,817  
1,875   ScanSource, Inc.           70,931  
2,787   Super Micro Computer, Inc.           74,329  
2,229   Take-Two Interactive Software, Inc.           70,392  
1,238   Tech Data Corp.           72,213  
2,135   Verifone Systems, Inc.           68,704  
2,954   Web.com Group Inc.           73,525  
                 
                919,329  
                 
                   
    MATERIALS   3.69 %        
4,515   Commerical Metals Co.           69,576  
1,786   Schweitzer-Mauduit International, Inc.           70,904  
2,839   Trinseo S.A.           69,158  
                 
                209,638  
                 
                   
    TELECOMMUNICATION SERVICES   1.55 %        
13,815   Vonage Holdings Corp.           88,278  
                 
                   
    UTILITIES   2.55 %        
1,780   Ormat Technologies Inc.           72,410  
1,723   Vectren Corp.           72,538  
                 
                144,949  
                 
                   
    TOTAL COMMON STOCKS           5,213,854  
                 
                   
    EXCHANGED TRADED FUND   5.41 %        
2,500   iShares Russell 2000           307,400  
                 
                   
    TOTAL EXCHANGE TRADED FUND           307,400  
                 


TOREADOR EXPLORER FUND
SCHEDULE OF INVESTMENTS
July 31, 2015
(unaudited)
 
Number                  
of     % of   Fair
Shares   Security Description Net Assets   Value
 
    MONEY MARKET FUND   3.63 %        
206,127   Federated Treasury Obligations Fund 0.01%*         $ 206,127  
                 
                   
    TOTAL MARKET FUND           206,127  
                 
                   
                   
    TOTAL INVESTMENTS   100.88 %     5,727,381  
    Liabilities, net of other assets   -0.88 %     (49,740 )
               
    NET ASSETS   100.00 %   $ 5,677,641  
               

* Effective 7 day yield as of July 31, 2015.

ADR - Security represented is held by the custodian bank in the form of American Depositary Receipts.

In accordance with U.S. GAAP, “fair value” is defined as the price that a fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. Various inputs are used in determining the value of a Fund’s investments. U.S. GAAP established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments as of July 31, 2015:

             
    Level 1   Level 2   Level 3        
             
                        Significant        
              Other Significant   Unobservable        
    Quoted Prices   Observable Inputs   Inputs   Total
 
Common Stocks       $5,213,854         -         -         $5,213,854
Exchange Traded Funds       307,400         -         -         $307,400
Money Market       206,127         -         -         206,127
 
        $5,727,381         -         -         $5,727,381
 

Refer to the Fund’s Schedule of Investments for a listing of securities by security type and industry. The Fund held no Level 3 securities at any time during the period. There were no transfers into or out of Levels 1 and 2 during the period ended July 31, 2015.

At July 31, 2015 the cost of investments for Federal income tax purposes has been estimated since the final tax characteristics cannot be determined until fiscal year end. Cost of securities for Federal Income tax purpose is $5,457,862 and the related tax-based net unrealized appreciation (depreciation) consists of:

  Gross unrealized appreciation   $ 123,007  
  Gross unrealized depreciation     (59,615 )
         
  Net unrealized appreciation   $ 63,392  
         


ITEM 2. CONTROLS AND PROCEDURES.

(a) The Registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “Act”)) as conducted within 90 days of the filing of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-Q is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s most recent fiscal quarter that materially affected, or were reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 3. EXHIBITS.

Separate certifications for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the Act pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are filed herewith.

Exhibit No. Description of Exhibit

99.1 Certification of Principal Executive Officer

99.2 Certification of Principal Financial Officer



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) World Funds Trust

By:   /s/ John Pasco, III
John Pasco, III
Principal Executive Officer
     
Date:   September 24, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:   /s/ John Pasco, III
John Pasco, III
Principal Executive Officer
     
Date:   September 24, 2015

By:   /s/ Karen Shupe
Karen Shupe
Principal Financial Officer
     
Date:   September 24, 2015