N-Q 1 dghm-nq_113019.htm QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

 

 

 

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:

John H. Lively

Practus TM  LLP

11300 Tomahawk Creek Parkway, Ste. 310

Leawood, KS  66211


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

Date of fiscal year end: last day of February

 

 Date of reporting period: 11/30/2019

 

 

 

 


ITEM 1. SCHEDULE OF INVESTMENTS for DGHM Funds

 

DGHM V2000 SmallCap Value Fund 

Schedule of Investments 

November 30, 2019 (unaudited)

 

 

       Shares   Fair Value 
 96.72%  COMMON STOCKS      
                
 20.26%  BANKS      
     Associated Banc-Corp.   12,611   $270,380 
     Columbia Banking System, Inc.   3,806    148,738 
     Community Trust Bancorp, Inc.   6,262    281,414 
     First Hawaiian, Inc.   6,789    193,758 
     First Horizon National Corp.   17,266    277,637 
     Fulton Financial Corp.   13,755    236,036 
     Greenhill & Co., Inc.   12,215    207,777 
     Hancock Whitney Corp.   4,732    192,167 
     Old National Bancorp   5,587    101,013 
     Provident Financial Services, Inc.   10,439    253,876 
     Sandy Spring Bancorp, Inc.   7,380    260,957 
     South State Corp.   2,944    245,176 
     Washington Federal, Inc.   7,695    283,253 
              2,952,182 
                
 6.24%  HEALTHCARE          
     Integer Holdings Corp.*   2,988    226,640 
     Orthofix Medical, Inc.*   4,874    221,280 
     Prestige Consumer Healthcare Inc.*   6,222    235,005 
     RadNet, Inc.*   11,815    226,375 
              909,300 
                
 10.32%  INDUSTRIAL          
     Atkore International Group Inc.*   6,908    288,202 
     Gibraltar Industries, Inc.*   5,217    272,432 
     The Greenbrier Cos., Inc.   6,027    169,600 
     Hawaiian Holdings, Inc.   1,711    51,826 
     Hub Group, Inc. Class A*   4,021    205,352 
     SPX FLOW, Inc.   3,348    158,695 
     UniFirst Corp.   1,731    357,019 
              1,503,126 
                
 4.10%  INFORMATION TECHNOLOGY          
     Ciena Corp.*   6,076    230,645 
     Fabrinet   3,281    198,468 
     Nuance Communications, Inc.   9,362    167,861 
              596,974 
                
 4.48%  INSURANCE          
     FBL Financial Group, Inc. Class A   3,369    193,953 
     Radian Group Inc.   7,231    186,849 
     RenaissanceRe Holdings Ltd.   1,448    272,702 
              653,504 
                
 2.18%  INVESTMENT SERVICES          
     Kennedy-Wilson Holdings, Inc.   14,022    317,037 
                
 2.13%  MATERIALS          
     Graphic Packaging Holding Co.   19,046    309,878 
                
 4.58%  MEDIA          
     Cable One, Inc.   249    382,215 
     Nexstar Media Group, Inc. Class A   2,643    284,678 
              666,893 

 

 

 

 

DGHM V2000 SmallCap Value Fund 

Schedule of Investments 

November 30, 2019 (unaudited)

 

 

          Shares     Fair Value  
                   
  5.38 %   MISCELLANEOUS MANUFACTURING                
        Kaiser Aluminum Corp.     2,829     $ 310,002  
        Teradyne, Inc.     5,093       318,771  
        TreeHouse Foods, Inc.*     3,181       155,519  
                      784,292  
                         
  5.28 %   OIL & GAS SERVICES                
        NexTier Oilfield Solutions Inc.     29,692       142,225  
        Oceaneering International, Inc.*     15,777       211,570  
        Talos Energy, Inc.*     9,189       213,185  
        WPX Energy, Inc.*     20,593       202,635  
                      769,615  
                         
  13.21 %   REAL ESTATE INVESTMENT TRUSTS                
        Bloomin' Brands, Inc.     9,334       224,483  
        Brandywine Realty Trust     22,217       342,808  
        Cousins Properties Inc.     8,809       356,676  
        Hersha Hospitality Trust Class A     17,710       251,128  
        Mack-Cali Realty Corp.     11,513       246,263  
        Meritage Homes Corp.*     3,220       214,259  
        STAG Industrial, Inc.     9,354       289,880  
                      1,925,497  
                         
  5.81 %   RETAIL                
        American Eagle Outfitters, Inc.     17,468       261,496  
        Bed Bath & Beyond Inc.     8,076       117,748  
        Caleres, Inc.     6,818       149,246  
        Taylor Morrison Home Corp.     7,075       164,281  
        Urban Outfitters, Inc.*     6,024       154,576  
                      847,347  
                         
  3.96 %   TRANSPORTATION                
        Forward Air Corp.     4,885       342,097  
        Moog Inc. Class A     2,730       234,425  
                      576,522  
                         
  8.79 %   UTILITIES                
        NorthWestern Corp.     4,265       305,246  
        Portland General Electric Co.     5,932       329,285  
        Quanta Services, Inc.     9,335       388,709  
        Southwest Gas Holdings, Inc.     3,405       257,963  
                      1,281,203  
                         
  96.72 %   TOTAL COMMON STOCKS             14,093,370  
                         

 

 

 

 

DGHM V2000 SmallCap Value Fund 

Schedule of Investments 

November 30, 2019 (unaudited)

 

 

          Shares     Fair Value  
  3.21 %   SHORT TERM INVESTMENTS                
                         
        Federated Treasury Obligation Fund - Institutional Class 1.54%**     467,630     $ 467,630  
                         
  99.93 %   TOTAL INVESTMENTS           $ 14,561,000  
  0.07%   Other assets, net of liabilities             9,767  
  100.00 %   NET ASSETS           $ 14,570,767  

 

*Non-income producing 

**Effective 7 day yield as of November 30, 2019

 

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 November 30, 2019:

 

   Level 1   Level 2   Level 3     
       Other Significant   Significant     
       Observable   Unobservable     
   Quoted Prices   Inputs   Inputs   Total 
Common Stocks  $14,093,370   $—   $—   $14,093,370 
Short Term Investments   467,630    —    —    467,630 
Total Investments  $14,561,000   $—   $—   $14,561,000 

 

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 November 30, 2019.

 

At November 30, 2019 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 $11,798,061 and the related tax-based net unrealized appreciation (depreciation) consists of:

 

Gross unrealized appreciation  $3,249,135 
Gross unrealized depreciation   (486,196)
Net unrealized appreciation  $2,762,939 

 

 

 

DGHM MicroCap Value Fund
Schedule of Investments
November 30, 2019 (unaudited)

 

      Shares   Fair Value 
93.53%  COMMON STOCKS          
              
13.97%  BANKS          
   BankFinancial Corp.   30,784   $420,202 
   Capital City Bank Group, Inc.   2,418    69,953 
   Central Valley Community Bancorp   30,929    652,602 
   Community Trust Bancorp, Inc.   13,745    617,700 
   First Bancorp   16,588    648,591 
   First Community Bankshares, Inc.   26,888    819,815 
   First Western Financial, Inc.*   7,546    128,584 
   HomeTrust Bancshares, Inc.   23,656    618,131 
   National Bankshares, Inc.   15,582    668,156 
   Northrim BanCorp, Inc.   16,152    605,215 
   Pacific Mercantile Bancorp*   66,694    477,529 
   Sandy Spring Bancorp, Inc.   18,663    659,924 
   Territorial Bancorp Inc.   21,279    674,332 
            7,060,734 
              
13.07%  CAPITAL GOODS          
   Commercial Vehicle Group, Inc.*   68,189    486,869 
   Continental Building Products, Inc.*   26,763    984,611 
   Ducommun Inc.*   17,866    873,290 
   Hurco Companies, Inc.   7,525    269,245 
   Kimball Electronics, Inc.*   33,964    595,729 
   L. B. Foster Co. Class A*   28,049    531,248 
   Preformed Line Products Co.   10,794    776,089 
   Sterling Construction Co., Inc.*   77,275    1,125,897 
   Transcat, Inc.**   29,384    963,501 
            6,606,479 
              
5.04%  COMMERCIAL & PROFESSIONAL SERVICES          
   CBIZ, Inc.*   46,210    1,241,201 
   SP Plus Corp.*   29,796    1,306,555 
            2,547,756 
              
4.21%  CONSUMER DISCRETIONARY          
   The Cato Corp. Class A   45,368    864,714 
   Century Communities, Inc.*   18,129    516,676 
   Nathan's Famous, Inc.   6,677    497,770 
   William Lyon Homes Class A*   12,015    250,873 
            2,130,033 
              
5.47%  CONSUMER DURABLES & APPAREL          
   M/I Homes, Inc.*   13,981    618,939 
   MasterCraft Boat Holdings, Inc.*   44,780    743,796 
   Rocky Brands, Inc.   25,106    699,955 
   Vera Bradley, Inc.*   63,409    700,035 
            2,762,725 
              
4.86%  CONSUMER SERVICES          
   Ark Restaurants Corp.   37,999    766,630 
   Collectors Universe, Inc.   33,617    883,119 
   The Marcus Corp.   25,641    806,666 
            2,456,415 
              
1.33%  DIVERSIFIED FINANCIALS          
   Greenhill & Co., Inc.   39,627    674,055 
              
3.83%  ENERGY          
   Bonanza Creek Energy, Inc.*   31,006    541,365 
   Helix Energy Solutions Group, Inc.*   101,061    838,806 
   Newpark Resources, Inc. *   94,637    554,573 
            1,934,744 

 

 

 

 

DGHM MicroCap Value Fund
Schedule of Investments
November 30, 2019 (unaudited)

 

      Shares   Fair Value 
              
4.49%  FINANCIALS          
   Employers Holdings, Inc.   22,637   $972,712 
   South State Corp.   9,277    772,589 
   Western New England Bancorp, Inc.   53,197    521,863 
            2,267,164 
              
6.34%  HEALTHCARE          
   Hanger, Inc.*   34,879    913,830 
   Harvard Bioscience, Inc.*   235,966    684,301 
   Orthofix Medical, Inc.*   17,488    793,955 
   RadNet, Inc.*   42,292    810,315 
            3,202,401 
              
0.86%  INFORMATION TECHNOLOGY          
   MTS Systems Corp.   9,582    435,214 
              
5.92%  MATERIALS          
   Foundation Building Materials, Inc.*   29,282    598,524 
   Innophos Holdings, Inc.   19,537    623,230 
   Kaiser Aluminum Corp.   6,062    664,274 
   United States Lime & Minerals, Inc.   10,768    1,107,704 
            2,993,732 
              
10.41%  REAL ESTATE INVESTMENT TRUSTS          
   CatchMark Timber Trust, Inc. Class A   92,600    1,099,162 
   City Office REIT, Inc.   71,528    960,621 
   Hersha Hospitality Trust Class A   61,192    867,703 
   Independence Realty Trust, Inc.   82,904    1,238,586 
   iStar Inc.   84,153    1,093,147 
            5,259,219 
              
3.37%  SEMICONDUCTORS          
   Kulicke and Soffa Industries, Inc.   37,124    931,441 
   Onto Innovation Inc.*   22,936    769,732 
            1,701,173 
              
3.25%  SOFTWARE & SERVICES          
   American Software, Inc. Class A   52,963    837,345 
   NIC Inc.   35,492    805,313 
            1,642,658 
              
2.78%  TRANSPORTATION          
   Marten Transport, Ltd.   40,232    850,102 
   Universal Logistics Holdings, Inc.   27,852    555,369 
            1,405,471 
              
4.33%  UTILITIES          
   Artesian Resources Corp. Class A   17,134    637,385 
   RGC Resources, Inc.   21,630    635,489 
   Unitil Corp.   14,985    914,684 
            2,187,558 
              
93.53%  TOTAL COMMON STOCKS        47,267,531 
              
1.02%  PREFERRED STOCKS          
              
1.02%  FINANCIAL          
   Steel Partners Holdings L.P., Series A, 6.00%, 2/7/2026   22,814    516,737 
              
1.02%  TOTAL PREFERRED STOCKS        516,737 

 

 

 

 

 

DGHM MicroCap Value Fund
Schedule of Investments
November 30, 2019 (unaudited)

 

      Shares   Fair Value 
              
5.30%  SHORT TERM INVESTMENTS          
   Federated Treasury Obligation Fund - Institutional Class 1.54**   2,675,561   $2,675,561 
              
99.85%  TOTAL INVESTMENTS       $50,459,829 
0.15%  Other assets, net of liabilities        76,382 
100.00%  NET ASSETS       $50,536,211 

 

*Non-income producing

**Effective 7 day yield as of November 30, 2019 

 

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 November 30, 2019:

 

   Level 1   Level 2   Level 3     
   Quoted Prices   Other Significant
Observable
Inputs		   Unobservable
Inputs		   Total 
Common Stocks  $47,267,531   $—   $—   $47,267,531 
Preferred Stocks   516,737    —    —    516,737 
Short Term Investments   2,675,561    —    —    2,675,561 
Total Investments  $50,459,829   $—   $—   $50,459,829 

 

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 November 30, 2019.

 

At November 30, 2019 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 $42,995,069 and the related tax-based net unrealized appreciation (depreciation) consists of:

 

Gross unrealized appreciation  $9,426,915 
Gross unrealized depreciation   (1,962,155)
Net unrealized appreciation  $7,464,760 

 

 

 


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/ Karen Shupe

 

Karen Shupe

Principal Executive Officer

Date: January 27, 2020

 

 

 

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/Karen Shupe

 

Karen Shupe

Principal Executive Officer

Date: January 27, 2020

 

By:

/s/Ann MacDonald

 

Ann MacDonald

Principal Financial Officer

Date: January 27, 2020