NPORT-EX 2 fp0056870_nportex-canyons.htm

SEVEN CANYONS STRATEGIC INCOME FUND

PORTFOLIO OF INVESTMENTS

June 30, 2020 (Unaudited)    

 

       Value 
   Shares   (Note 2) 
COMMON STOCKS (80.13%)          
Aerospace & Defense (1.84%)          
Avon Rubber PLC   11,700   $462,878 
           
Airport Services (2.01%)          
Grupo Aeroportuario del Pacifico SAB de CV, Class B   70,000    505,314 
           
Alternative Carriers (5.47%)          
Gamma Communications PLC   32,500    520,030 
KINX, Inc.   4,000    197,881 
MNF Group, Ltd.   134,863    526,483 
V-Cube, Inc.   11,000    133,605 
Total Alternative Carriers        1,377,999 
           
Application Software (3.44%)          
Atled Corp.   13,300    254,731 
Ezwel Co., Ltd.   29,500    318,775 
Lime Technologies AB   6,000    159,214 
Rakus Co., Ltd.   7,500    132,562 
Total Application Software        865,282 
           
Asset Management & Custody Banks (13.78%)          
AJ Bell PLC   52,000    249,855 
Burford Capital, Ltd.   186,000    1,075,410 
Golub Capital BDC, Inc.   42,000    489,300 
Hargreaves Lansdown PLC   32,000    645,313 
Solar Capital, Ltd.   20,161    322,778 
Solar Senior Capital, Ltd.   53,474    686,072 
Total Asset Management & Custody Banks        3,468,728 
           
Biotechnology (3.57%)          
Abcam PLC   27,300    450,918 
Seegene, Inc.   4,800    447,029 
Total Biotechnology        897,947 
           
Building Products (0.73%)          
Absolent Group AB(a)   1,344    50,306 
Nederman Holding AB(a)   11,000    133,149 
Total Building Products        183,455 
           
Coal & Consumable Fuels (0.71%)          
NAC Kazatomprom JSC, GDR(b)   13,000    180,050 
           
Consumer Finance (1.92%)          
Arman Financial Services, Ltd.   40,501    238,749 

 

 

 

       Value 
   Shares   (Note 2) 
Consumer Finance (continued)          
OneMain Holdings, Inc.   10,000   $245,400 
Total Consumer Finance        484,149 
           
Data Processing & Outsourced Services (3.19%)          
My EG Services Bhd   475,000    158,784 
Vakrangee, Ltd.   1,400,000    645,141 
Total Data Processing & Outsourced Services        803,925 
           
Distillers & Vintners (1.59%)          
Radico Khaitan, Ltd.   81,000    401,673 
           
Diversified Banks (2.35%)          
Bank Rakyat Indonesia Persero Tbk PT   971,000    207,253 
Halyk Savings Bank of Kazakhstan JSC, GDR(a)(b)   16,251    201,513 
HDFC Bank, Ltd., ADR   4,000    181,840 
Total Diversified Banks        590,606 
           
Diversified REITs (2.15%)          
Star Asia Capital Corp.(c)(d)(e)(f)(g)   355,714    541,752 
           
Electrical Components & Equipment (1.39%)          
Vitzrocell Co., Ltd.   6,519    89,767 
Voltronic Power Technology Corp.   9,000    259,336 
Total Electrical Components & Equipment        349,103 
           
Electronic Components (0.63%)          
Sensortek Technology Corp.(a)   5,000    158,188 
           
Financial Exchanges & Data (1.67%)          
OTC Markets Group, Inc., Class A   14,000    420,000 
           
Health Care Equipment (1.45%)          
Revenio Group Oyj   11,500    364,797 
           
Health Care Services (0.46%)          
Metropolis Healthcare, Ltd.(b)(e)   6,500    116,813 
           
Health Care Supplies (0.96%)          
Ypsomed Holding AG   1,700    241,451 
           
Homebuilding (0.83%)          
Dom Development SA(a)   8,800    208,201 
           
Hypermarkets & Super Centers (0.26%)          
Metro Retail Stores Group, Inc.   2,019,592    64,765 
           
Industrial Gases (1.13%)          
Taiyo Nippon Sanso Corp.   17,000    284,288 
           
Industrial Machinery (0.63%)          
Confidence Petroleum India, Ltd.(a)   607,000    157,079 

 

 

 

       Value 
   Shares   (Note 2) 
Industrial Machinery (continued)          
Porvair PLC   116   $802 
Total Industrial Machinery        157,881 
           
Integrated Telecommunication Services (1.79%)          
Sarana Menara Nusantara Tbk PT   6,285,000    450,578 
           
Internet & Direct Marketing Retail (2.03%)          
momo.com, Inc.   21,000    510,665 
           
Mortgage REITs (4.69%)          
AGNC Investment Corp.   38,000    490,200 
Dynex Capital, Inc.   18,000    257,400 
Great Ajax Corp.   47,000    432,400 
Total Mortgage REITs        1,180,000 
           
Oil & Gas Storage & Transportation (3.08%)          
Golar LNG Partners LP   66,000    170,280 
Magellan Midstream Partners LP   14,000    604,380 
Total Oil & Gas Storage & Transportation        774,660 
           
Packaged Foods & Meats (1.10%)          
Guan Chong Bhd   443,000    277,254 
           
Personal Products (0.82%)          
TCI Co., Ltd.   22,085    206,313 
           
Pharmaceuticals (3.25%)          
Granules India, Ltd.   211,861    567,722 
Hypera SA   41,000    251,138 
Total Pharmaceuticals        818,860 
           
Property & Casualty Insurance (0.39%)          
Qualitas Controladora SAB de CV   25,000    98,327 
           
Publishing (3.64%)          
Future PLC   58,000    915,448 
           
Regional Banks (2.33%)          
AU Small Finance Bank, Ltd.(b)(e)   81,900    586,707 
           
Semiconductor Equipment (0.98%)          
Tokai Carbon Korea Co., Ltd.   3,400    247,587 
           
Technology Hardware, Storage & Peripherals (1.00%)          
Advantech Co., Ltd.   25,000    251,594 
           
Thrifts & Mortgage Finance (2.87%)          
Aavas Financiers, Ltd.(a)   41,000    723,890 
           
TOTAL COMMON STOCKS          
(Cost $19,383,454)        20,171,128 

 

 

 

       Value 
   Shares   (Note 2) 
WARRANTS (0.05%)          
Packaged Foods & Meats (0.05%)          
Guan Chong Bhd, Strike Price $1.65, Expires 11/04/2022   53,666    11,585 
TOTAL WARRANTS          
(Cost $–)        11,585 

 

   7 Day Yield   Shares   Value
(Note 2)		 
SHORT TERM INVESTMENT (16.89%)               
                
State Street Institutional US Government Money Market Fund   0.039%   4,253,294    4,253,294 
              4,253,294 
TOTAL SHORT TERM INVESTMENT               
(Cost $4,253,294)             4,253,294 
                
TOTAL INVESTMENTS (97.07%)               
(Cost $23,636,748)            $24,436,007 
                
OTHER ASSETS IN EXCESS OF LIABILITIES (2.93%)             737,628 
                
NET ASSETS (100.00%)            $25,173,635 

 

(a) Non-income producing security.
(b) Securities were purchased pursuant to Regulation S under the Securities Act of 1933, which exempts securities offered and sold outside of the United States from registration. Such securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. As of June 30, 2020, the market value of those securities was $1,085,083 representing 4.31% of net assets.
(c) As a result of the use of significant unobservable inputs to determine fair value, these investments have been classified as Level 3 assets. Additional information on Level 3 assets can be found in Note 2. Significant Accounting Policies in the Notes to Financial Statements section.
(d) Security deemed to be restricted as of June 30, 2020. As of June 30, 2020, the market value of restricted securities in the aggregate was $541,752, representing 2.15% of the Fund’s net assets. Additional information on restricted securities can be found in Note 2 and 8.
(e) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2020 the market value of securities restricted under Rule 144A in the aggregate was $1,245,272, representing 4.95% of net assets.
(f) Fair valued security under the procedures approved by the Fund’s Board of Trustees.
(g) Security deemed to be illiquid under the procedures approved by the Fund’s Board of Trustees. As of June 30, 2020, the market value of illiquid securities in the aggregate was $541,752, representing 2.15% of the Fund’s net assets.

 

 

 

 

 

At June 30, 2020, Seven Canyons Strategic Income Fund's investments, excluding short-term investments, were in the following countries:

 

Country  % of Total Market Value 
Australia   2.6 
Brazil   1.2 
Finland   1.8 
Great Britain   16.9 
India   17.9 
Indonesia   3.3 
Japan   4.0 
Kazakhstan   1.9 
Malaysia   2.2 
Mexico   3.0 
Philippines   0.3 
Poland   1.0 
South Korea   6.4 
Sweden   1.7 
Switzerland   1.2 
Taiwan   6.9 
United States   27.7 
    100.0 

 

 

 

 

 

SEVEN CANYONS WORLD INNOVATORS FUND        
PORTFOLIO OF INVESTMENTS        
June 30, 2020 (Unaudited)        
         
       Value 
   Shares   (Note 2) 
COMMON STOCKS (93.49%)          
Aerospace & Defense (4.09%)          
Avon Rubber PLC   110,000   $4,351,840 
CAE, Inc.   60,000    973,188 
Total Aerospace & Defense        5,325,028 
           
Airport Services (1.04%)          
Grupo Aeroportuario del Centro Norte SAB de CV(a)   150,000    697,187 
Grupo Aeroportuario del Pacifico SAB de CV, Class B   90,000    649,690 
Total Airport Services        1,346,877 
           
Alternative Carriers (14.44%)          
Gamma Communications PLC   471,623    7,546,403 
MNF Group, Ltd.   1,609,836    6,284,539 
NFON AG(a)(b)   169,598    2,528,214 
V-Cube, Inc.   200,000    2,429,188 
Total Alternative Carriers        18,788,344 
           
Application Software (14.78%)          
24sevenoffice Scandinavia AB(a)   200,000    536,584 
AI, Inc.   45,000    946,564 
Altium, Ltd.   25,000    566,430 
Atled Corp.   80,000    1,532,214 
Dubber Corp., Ltd.(a)   1,500,000    1,187,750 
Elmo Software, Ltd.(a)   160,000    794,834 
GK Software SE(a)   25,000    1,748,435 
Lime Technologies AB   60,000    1,592,141 
LoopUp Group PLC(a)   2,000,000    3,370,341 
MelodyVR Group PLC(a)   30,000,000    1,691,738 
Money Forward, Inc.(a)   11,000    609,269 
Rakus Co., Ltd.   30,000    530,250 
Sinch AB(a)(c)(d)   18,000    1,549,154 
Smaregi, Inc.(a)   20,000    626,309 
Whispir, Ltd.(a)   1,300,000    1,949,888 
Total Application Software        19,231,901 
           
Asset Management & Custody Banks (2.03%)          
AJ Bell PLC   550,000    2,642,702 
           
Biotechnology (5.95%)          
Abcam PLC   300,000    4,955,145 

 

 

 

       Value 
   Shares   (Note 2) 
Biotechnology (continued)          
Seegene, Inc.   30,000   $2,793,927 
Total Biotechnology        7,749,072 
           
Building Products (0.88%)          
Absolent Group AB(a)   14,503    542,845 
Nederman Holding AB(a)   50,000    605,224 
Total Building Products        1,148,069 
           
Communications Equipment (0.92%)          
Blackline Safety Corp.(a)   300,000    1,199,912 
           
Data Processing & Outsourced Services (1.81%)          
My EG Services Bhd   2,085,800    697,246 
Vakrangee, Ltd.   3,586,096    1,652,527 
Total Data Processing & Outsourced Services        2,349,773 
           
Distillers & Vintners (1.52%)          
Radico Khaitan, Ltd.   400,000    1,983,569 
           
Diversified Banks (1.09%)          
TCS Group Holding PLC, GDR(d)   70,000    1,421,000 
           
Diversified Support Services (0.44%)          
Johnson Service Group PLC   400,000    572,482 
           
Electrical Components & Equipment (0.24%)          
Vitzrocell Co., Ltd.   22,522    310,128 
           
Electronic Manufacturing Services (0.27%)          
Audinate Group, Ltd.(a)   94,000    355,000 
           
Food Retail (6.60%)          
Naked Wines PLC   1,568,640    8,592,112 
           
Health Care Equipment (3.15%)          
Ray Co. Ltd/KR(a)   19,000    701,962 
Revenio Group Oyj   100,000    3,172,150 
Surgical Science Sweden AB(a)   30,000    226,676 
Total Health Care Equipment        4,100,788 
           
Health Care Facilities (1.28%)          
Japan Animal Referral Medical Center Co., Ltd.(a)   50,000    976,598 
Medikaloka Hermina Tbk PT(d)   3,200,000    683,757 
Total Health Care Facilities        1,660,355 
           
Health Care Services (0.97%)          
Metropolis Healthcare, Ltd.(c)(d)   70,000    1,257,987 

 

 

 

       Value 
   Shares   (Note 2) 
Health Care Supplies (2.20%)          
Tristel PLC   300,000   $1,579,847 
Ypsomed Holding AG   9,000    1,278,271 
Total Health Care Supplies        2,858,118 
           
Health Care Technology (3.33%)          
MedPeer, Inc.(a)   50,000    1,294,228 
Mentice AB(a)   40,403    317,481 
RaySearch Laboratories AB(a)   290,000    2,718,255 
Total Health Care Technology        4,329,964 
           
Home Improvement Retail (0.30%)          
AllHome Corp.(a)   2,622,700    387,557 
           
Industrial Machinery (0.61%)          
Confidence Petroleum India, Ltd.(a)   1,000,000    258,780 
va-Q-tec AG(a)(d)   30,000    537,776 
Total Industrial Machinery        796,556 
           
Internet & Direct Marketing Retail (18.24%)          
AO World PLC(a)   4,000,000    7,183,604 
HelloFresh SE(a)   59,000    3,156,184 
Kogan.com, Ltd.   300,000    3,079,623 
momo.com, Inc.   100,000    2,431,737 
Oisix ra daichi, Inc.(a)   180,000    3,525,666 
PChome Online, Inc.(a)   470,000    1,893,215 
zooplus AG(a)   15,000    2,463,803 
Total Internet & Direct Marketing Retail        23,733,832 
           
Investment Banking & Brokerage (1.41%)          
JDC Group AG(a)   230,000    1,836,980 
           
IT Consulting & Other Services (1.07%)          
TechMatrix Corp.   80,000    1,396,293 
           
Leisure Facilities (0.00%)(e)          
Goals Soccer Centres PLC(a)(b)(f)(g)(h)   1,492,500    0 
           
Life Sciences Tools & Services (1.22%)          
Genetic Signatures, Ltd.(a)   1,067,340    1,590,505 
           
Pharmaceuticals (0.24%)          
Ouro Fino Saude Animal Participacoes SA   60,000    309,814 
           
Restaurants (2.48%)          
Marley Spoon AG(a)   2,500,000    3,227,382 

 

 

 

       Value 
   Shares   (Note 2) 
Systems Software (0.89%)          
WANdisco PLC(a)   150,000   $1,160,138 
           
TOTAL COMMON STOCKS          
(Cost $93,611,953)        121,662,238 
           
LIMITED PARTNERSHIP INTEREST (0.07%)          
Other Diversified Financial Services (0.07%)          
Greenspring Global Partners II LP(a)(b)(g)(h)   1    89,943 
           
TOTAL LIMITED PARTNERSHIP INTEREST          
(Cost $185,658)        89,943 

 

   7 Day Yield   Shares   Value
(Note 2)		 
SHORT TERM INVESTMENT (4.37%)               
                
State Street Institutional US Government Money Market Fund   0.039%   5,688,733    5,688,733 
              5,688,733 
TOTAL SHORT TERM INVESTMENT               
 (Cost $5,688,733)             5,688,733 
                
TOTAL INVESTMENTS (97.93%)               
 (Cost $99,486,344)            $127,440,914 
                
OTHER ASSETS IN EXCESS OF LIABILITIES (2.07%)             2,699,101 
                
NET ASSETS (100.00%)            $130,140,015 

 

(a) Non-income producing security.
(b) Security deemed to be illiquid under the procedures approved by the Fund’s Board of Trustees. As of June 30, 2020, the market value of illiquid securities in the aggregate was $2,618,157, representing 2.01% of the Fund’s net assets.
(c) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2020 the market value of securities restricted under Rule 144A in the aggregate was $2,807,141, representing 2.16% of net assets.
(d) Securities were purchased pursuant to Regulation S under the Securities Act of 1933, which exempts securities offered and sold outside of the United States from registration. Such securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. As of June 30, 2020, the market value of those securities was $5,449,674 representing 4.19% of net assets.
(e) Less than .005%.
(f) As a result of the use of significant unobservable inputs to determine fair value, these investments have been classified as Level 3 assets. Additional information on Level 3 assets can be found in Note 2. Significant Accounting Policies in the Notes to Financial Statements section.

 

 

 

(g) Security deemed to be restricted as of June 30, 2020. As of June 30, 2020, the market value of restricted securities in the aggregate was $89,943, representing 0.07% of the Fund’s net assets. Additional information on restricted securities can be found in Note 2 and 8.
(h) Fair valued security under the procedures approved by the Fund’s Board of Trustees.

 

At June 30, 2020, Seven Canyons World Innovators Fund's investments, excluding short-term investments, were in the following countries:
 
Country  % of Total Market Value 
Australia   13.0 
Brazil   0.3 
Canada   1.8 
Cyprus   1.2 
Finland   2.6 
Germany   12.7 
Great Britain   35.8 
India   4.2 
Indonesia   0.6 
Japan   11.4 
Malaysia   0.6 
Mexico   1.1 
Norway   0.4 
Philippines   0.3 
South Korea   3.1 
Sweden   6.2 
Switzerland   1.0 
Taiwan   3.6 
United States   0.1 (a)
    100.0 

 

(a) Less than .005%.

 

 

 

Notes to Quarterly Portfolio of Investments

June 30, 2020 (Unaudited)

 

1.ORGANIZATION

 

ALPS Series Trust (the “Trust”), a Delaware statutory trust, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust consists of multiple separate portfolios or series. This quarterly report describes the Seven Canyons Strategic Income Fund (the “Strategic Income Fund”) and Seven Canyons World Innovators Fund (the “World Innovators Fund”)(each individually a “Fund” or collectively “Funds”). The Strategic Income Fund’s primary investment objective is to capture current income with a secondary objective of long-term growth of capital and World Innovators Fund’s primary investment objective is long-term growth of capital. The Funds are each classified as diversified under the 1940 Act. The Strategic Income Fund currently offers Investor Class shares and the World Innovators Fund currently offers Investor Class and Institutional Class shares. Each share class has identical rights to earnings, assets and voting privileges, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. The Board of Trustees (the “Board”) may establish additional funds and classes of shares at any time in the future without shareholder approval.

 

2.SIGNIFICANT ACCOUNTING POLICIES

 

The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America for investment companies (“U.S. GAAP”). Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946. The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by each Fund in preparation of its financial statements.

 

Investment Valuation: Each Fund generally values its securities based on market prices determined at the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern Time, on each day the NYSE is open for trading.

 

For equity securities and mutual funds that are traded on an exchange, the market price is usually the closing sale or official closing price on that exchange. In the case of equity securities not traded on an exchange, or if such closing prices are not otherwise available, the securities are valued at the mean of the most recent bid and ask prices on such day.

 

Equity securities that are primarily traded on foreign securities exchanges are valued at the last sale price or closing values of such securities on their respective foreign exchanges, except when an event occurs subsequent to the close of the foreign exchange and the close of the NYSE that was likely to have changed such value. In such an event, the fair value of those securities are determined in good faith through consideration of other factors in accordance with procedures established by and under the general supervision of the Board. The Funds will use a fair valuation model provided by an independent pricing service, which is intended to reflect fair value when a security’s value or a meaningful portion of each Fund’s portfolio is believed to have been materially affected by a valuation event that has occurred between the close of the exchange or market on which the security is traded and the close of the regular trading day on the NYSE. The Funds’ valuation procedures set forth certain triggers which instruct when to use the fair valuation model. Foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. Dollars at the exchange rate of said currencies against the U.S. Dollar, as of valuation time, as provided by an independent pricing service approved by the Board.

 

Redeemable securities issued by open-end registered investment companies are valued at the investment company’s applicable net asset value (“NAV”), with the exception of exchange-traded open-end investment companies, which are priced as equity securities.

 

When such prices or quotations are not available, or when the Fair Value Committee appointed by the Board believes that they are unreliable, securities may be priced using fair value procedures approved by the Board.

 

Fair Value Measurements: The Funds disclose the classification of their fair value measurements following a three-tier hierarchy based on the inputs used to measure fair value. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.

 

 

 

 

 

Various inputs are used in determining the value of the Funds’ investments as of the end of the reporting period. When inputs used fall into different levels of the fair value hierarchy, the level in the hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments. These inputs are categorized in the following hierarchy under applicable financial accounting standards:

 

Level 1 – Unadjusted quoted prices in active markets for identical investments, unrestricted assets or liabilities that the Fund has the ability to access at the measurement date;

 

Level 2 – Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly); and

 

Level 3 – Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date.

 

The following is a summary of the inputs used to value the Funds’ investments as of June 30, 2020:

 

SEVEN CANYONS STRATEGIC INCOME FUND

Investments in Securities at Value*

  Level 1 - Unadjusted Quoted Prices   Level 2 - Other Significant Observable Inputs   Level 3 - Significant Unobservable Inputs   Total 
Common Stocks                    
Aerospace & Defense  $–   $462,878   $–   $462,878 
Airport Services   505,314    –    –    505,314 
Alternative Carriers   –    1,377,999    –    1,377,999 
Application Software   –    865,282    –    865,282 
Asset Management & Custody Banks   1,498,150    1,970,578    –    3,468,728 
Biotechnology   450,918    447,029    –    897,947 
Building Products   –    183,455    –    183,455 
Coal & Consumable Fuels   180,050    –    –    180,050 
Consumer Finance   245,400    238,749    –    484,149 
Data Processing & Outsourced Services   –    803,925    –    803,925 
Distillers & Vintners   –    401,673    –    401,673 
Diversified Banks   383,353    207,253    –    590,606 
Diversified REITs   –    –    541,752    541,752 
Electrical Components & Equipment   –    349,103    –    349,103 
Electronic Components   –    158,188    –    158,188 
Financial Exchanges & Data   420,000    –    –    420,000 
Health Care Equipment   –    364,797    –    364,797 
Health Care Services   –    116,813    –    116,813 
Health Care Supplies   –    241,451    –    241,451 
Homebuilding   –    208,201    –    208,201 
Hypermarkets & Super Centers   –    64,765    –    64,765 
Industrial Gases   –    284,288    –    284,288 
Industrial Machinery   802    157,079    –    157,881 
Integrated Telecommunication Services   –    450,578    –    450,578 
Internet & Direct Marketing Retail   –    510,665    –    510,665 
Mortgage REITs   1,180,000    –    –    1,180,000 
Oil & Gas Storage & Transportation   774,660    –    –    774,660 
Packaged Foods & Meats   –    277,254    –    277,254 
Personal Products   –    206,313    –    206,313 
Pharmaceuticals   251,138    567,722    –    818,860 
Property & Casualty Insurance   98,327    –    –    98,327 
Publishing   –    915,448    –    915,448 
Regional Banks   –    586,707    –    586,707 
Semiconductor Equipment   –    247,587    –    247,587 
Technology Hardware, Storage & Peripherals   –    251,594    –    251,594 
Thrifts & Mortgage Finance   –    723,890    –    723,890 
Warrants   11,585    –    –    11,585 
Short Term Investment   4,253,294    –    –    4,253,294 
Total  $10,252,991   $13,641,264   $541,752   $24,436,007 

 

 

 

SEVEN CANYONS WORLD INNOVATORS FUND

Investments in Securities at Value*

  Level 1 - Unadjusted Quoted Prices   Level 2 - Other Significant Observable Inputs   Level 3 - Significant Unobservable Inputs   Total 
Common Stocks                    
Aerospace & Defense  $973,188   $4,351,840   $–   $5,325,028 
Airport Services   1,346,877    –    –    1,346,877 
Alternative Carriers   –    18,788,344    –    18,788,344 
Application Software   3,906,925    15,324,976    –    19,231,901 
Asset Management & Custody Banks   –    2,642,702    –    2,642,702 
Biotechnology   4,955,145    2,793,927    –    7,749,072 
Building Products   –    1,148,069    –    1,148,069 
Communications Equipment   1,199,912    –    –    1,199,912 
Data Processing & Outsourced Services   –    2,349,773    –    2,349,773 
Distillers & Vintners   –    1,983,569    –    1,983,569 
Diversified Banks   1,421,000    –    –    1,421,000 
Diversified Support Services   –    572,482    –    572,482 
Electrical Components & Equipment   –    310,128    –    310,128 
Electronic Manufacturing Services   –    355,000    –    355,000 
Food Retail   –    8,592,112    –    8,592,112 
Health Care Equipment   –    4,100,788    –    4,100,788 
Health Care Facilities   –    1,660,355    –    1,660,355 
Health Care Services   –    1,257,987    –    1,257,987 
Health Care Supplies   1,579,847    1,278,271    –    2,858,118 
Health Care Technology   –    4,329,964    –    4,329,964 
Home Improvement Retail   –    387,557    –    387,557 
Industrial Machinery   –    796,556    –    796,556 
Internet & Direct Marketing Retail   –    23,733,832    –    23,733,832 
Investment Banking & Brokerage   –    1,836,980    –    1,836,980 
IT Consulting & Other Services   –    1,396,293    –    1,396,293 
Leisure Facilities   –    –    –**   –**
Life Sciences Tools & Services   –    1,590,505    –    1,590,505 
Pharmaceuticals   309,814    –    –    309,814 
Restaurants   –    3,227,382    –    3,227,382 
Systems Software   –    1,160,138    –    1,160,138 
Limited Partnership Interest(a)   –    –    –    89,943 
Short Term Investment   5,688,733    –    –    5,688,733 
Total  $21,381,441   $105,969,530    $   – **   $127,440,914 

 

* For a detailed Industry breakdown, see the accompanying Portfolio of Investments.
** Security valued at zero.
(a) Certain investments measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value levels. The fair value amounts presented in the table are intended to permit reconciliation to the amounts presented in the Portfolio of Investments.

 

 

 

 

 

Fund  Fair Value at 6/30/2020   Unfunded Commitments   Redemption Frequency (if currently eligible)   Redemption Notice Period
Seven Canyons World Innovators Fund    
Limited Partnership Interest(a)       $89,943   $–    –   –

 

(a)The fair value of this limited partnership interest has been estimated using the net asset value of the Fund's Limited Partner Capital Account. This limited partnership interest can never be redeemed. Distributions from the limited partnership will be received as the underlying investments are liquidated. It is estimated that the underlying assets of the limited partnership will be liquidated over the next one to five years. The final purchase commitment was made on March 31, 2017 for Greenspring Global Partners II-B, L.P.

 

The following is a reconciliation of assets in which Level 3 inputs were used in determining value:

 

Seven Canyons Strategic Income Fund  Common Stocks   Total 
Balance as of September 30, 2019  $786,128   $786,128 
Change in Unrealized Appreciation/(Depreciation)   (244,376)   (244,376)
Purchases    -    - 
Sales Proceeds   -    - 
Transfer into Level 3    -    - 
Transfer out of Level 3   -    - 
Balance as of June 30, 2020  $541,742   $541,742 
           
Net change in unrealized appreciation/(depreciation) included in the Statements of Operations attributable to Level 3 investments held at June 30, 2020  $(244,376)  $(244,376)

 

Seven Canyons World Innovators Fund   Common Stocks    Total 
Balance as of September 30, 2019  $-**  $-**
Realized Gain/(Loss)   -    - 
Change in Unrealized Appreciation/(Depreciation)   -    - 
Purchases   -    - 
Sales Proceeds   -    - 
Transfer into Level 3   -    - 
Transfer out of Level 3   -    - 
Balance as of June 30, 2020  $-**  $-**
Net change in unrealized appreciation/(depreciation) included in the Statements of Operations attributable to Level 3 investments held at June 30, 2020  $-   $- 

 

**Security has zero value

 

Quantitative information about Level 3 measurements as of June 30, 2020:

 

Seven Canyons Strategic Income Fund

 

Asset Class  Fair Value   Valuation Technique(s)  Unobservable Input(s)(a)  Value/Range 
Common Stock  $541,742   Net Asset Value less Liquidity Discount  Liquidity Discount   25%

 

 

 

 

Seven Canyons World Innovators Fund

 

Asset Class  Fair Value   Valuation Technique(s)  Unobservable Input(s)(a)  Value/Range 
Common Stock  $-**  Estimated Liquidation Value  Estimated Liquidation Value   100%

 

(a)A change to the unobservable input may result in a significant change to the value of the investment as follows: A change to a multiple may affect the fair value of an investment. Generally, a decrease in this multiple will result in a decrease in the fair value of the investment. For Liquidity Discount, a decrease in the multiple will result in an increase in fair value of the investment.

 

Cash & Cash Equivalents: The Funds consider their investment in a Federal Deposit Insurance Corporation (“FDIC”) insured interest bearing account to be cash and cash equivalents. Cash and cash equivalents are valued at cost plus any accrued interest. The Funds maintain cash balances, which, at times may exceed federally insured limits. The Funds maintain these balances with a high quality financial institution.

 

Concentration of Credit Risk: Each Fund places its cash with a banking institution, which is insured by the FDIC. The FDIC limit is $250,000. At various times throughout the year, the amount on deposit may exceed the FDIC limit and subject the Fund to a credit risk. The Funds do not believe that such deposits are subject to any unusual risk associated with investment activities.

 

Trust Expenses: Some expenses of the Trust can be directly attributed to a Fund. Expenses that cannot be directly attributed to a Fund are apportioned among all funds in the Trust based on average net assets of each fund, including Trustees’ fees and expenses.

 

Fund Expenses: Some expenses can be directly attributed to a Fund and are apportioned among the classes based on average net assets of each class.

 

Class Expenses: Expenses that are specific to a class of shares are charged directly to that share class.

 

Investment Transactions and Investment Income: Investment transactions are accounted for on the date the investments are purchased or sold (trade date basis for financial reporting purposes). Realized gains and losses from investment transactions are reported on an identified cost basis. Interest income, which includes accretion of discounts and amortization of premiums, is accrued and recorded as earned using the effective interest method. Dividend income is recognized on the ex-dividend date, or for certain foreign securities, as soon as information is available to the Fund. Withholding taxes on foreign dividends are paid (a portion of which may be reclaimable) or provided for in accordance with the applicable country’s tax rules and rates and are disclosed in the Statements of Operations. All of the realized and unrealized gains and losses and net investment income are allocated daily to each class in proportion to its average daily net assets.

 

Foreign Securities: The Funds may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible re-evaluation of currencies, the inability to repatriate foreign currency, less complete financial information about companies and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. issuers.

 

Foreign Currency Translation: Values of investments denominated in foreign currencies are converted into U.S. dollars using the current exchange rates each business day (generally 4:00 p.m. Eastern Time). Purchases and sales of investments and dividend income are translated into U.S. dollars using the current prevailing exchange rate on the transaction date. The effect of changes in foreign exchange rates on realized and unrealized gains or losses on securities is reflected as a component of such gains or losses. Transactions in foreign denominated assets may involve greater risks than domestic transactions.

 

Foreign Exchange Transactions: The Funds may enter into foreign currency spot contracts to facilitate transactions in foreign securities or to convert foreign currency receipts into U.S. dollars. A foreign currency spot contract is an agreement between two parties to buy and sell currencies at the current market rate, for settlement generally within two business days. The U.S. dollar value of the contracts is determined using current currency exchange rates supplied by a pricing service. The contract is marked-to-market daily for settlements beyond one day and any change in market value is recorded as an unrealized gain or loss. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value on the open and close date. Losses may arise from changes in the value of the foreign currency, or if the counterparties do not perform under the contract’s terms. The maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

 

 

 

Distributions to Shareholders: The Funds normally pay dividends, if any, quarterly, and distribute capital gains, if any, on an annual basis. Income dividend distributions are derived from interest and other income a Fund receives from its investments, including short-term capital gains. Long-term capital gain distributions are derived from gains realized when a Fund sells a security it has owned for more than one year. The Funds may make additional distributions and dividends at other times if its investment advisor has determined that doing so may be necessary for the Fund to avoid or reduce taxes. Net investment income/(loss) and net realized gain/(loss) may differ for financial statement and tax purposes.

 

Restricted Securities: Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer’s expense, either upon demand by a fund or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid. The Funds will not incur any registration costs upon such resale. The Funds’ restricted securities are valued at the price provided by pricing services or dealers in the secondary market or, if no market prices are available, at the fair value price as determined by the Fund’s Adviser or pursuant to the Fund’s fair value policy, subject to oversight by the Board. The Funds have acquired certain securities, the sale of which is restricted under applicable provisions of the Securities Act of 1933. It is possible that the fair value price may differ significantly from the amount that may ultimately be realized in the near term, and the difference could be material.

 

The below securities are restricted from resale as of June 30, 2020:

 

Fund  Security Type  Acquisition
Date		  Cost   Fair Value   % of
Net Assets		 
Seven Canyons Strategic Income Fund                     
Star Asia Capital Corp.  Common Stocks  2/22/07-5/11/15  $572,597   $541,752    2.15%
Seven Canyons World Innovators Fund                     
Goals Soccer Centres PLC  Common Stocks  9/26/17-4/24/18  $1,687,203   $0    0.00%
Greenspring Global Partners II LP  Limited Partnership Interest  10/10/13-3/31/17   185,658    89,943    0.07%
         $1,872,861   $89,943    0.07%

 

Restricted securities under Rule 144a, including the aggregate value and percentage of net assets of each Fund, have been identified in the Portfolios of Investments.

 

COVID-19 Risks: A recent outbreak of respiratory disease caused by a novel coronavirus was first detected in China in December 2019 and has now been detected internationally. This coronavirus has resulted in closing borders, enhanced health screenings, healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this coronavirus, and other epidemics and pandemics that may arise in the future, could affect the economies of many nations, individual companies, their securities (including equity and debt), and the market in general in ways that cannot necessarily be foreseen at the present time. In addition, the impact of infectious diseases in developing or emerging market countries may be greater due to less established health care systems. Health crises caused by the recent coronavirus outbreak may exacerbate other preexisting political, social and economic risks in certain countries. The impact of the outbreak may be short term or may last for an extended period of time.

 

3.TRANSACTIONS WITH AFFILIATES

 

If a Fund’s holding represents ownership of 5% or more of the voting securities of a company, the company is deemed to be an affiliate as defined by the 1940 Act. The following Funds conducted transactions during the nine month period ended June 30, 2020 with an “affiliated company” as so defined:

 

Security Name  Share Balance as of September 30, 2019   Purchases   Sales   Share Balance as of June 30, 2020   Market Value as of June 30, 2020   Dividends   Change in Unrealized Gain (Loss)   Realized Gain/Loss 
Japan Animal Referral Medical Center Co., Ltd.*   150,000    -    (100,000)   50,000   $976,598   $-    225,544   $(917,717)
                       $976,598   $-   $225,544   $(917,717)

 

*As of June 30, 2020, the security is no longer considered an affiliate as defined by the 1940 Act.