-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Cu0FEBpFN79xUm9XbBNv+2t78uHpzwkfwaB1LfjFOjHb7fMIFviZJiHWsFusIwgf mjX1Zx6qRYaHEai2YcwuLg== 0000893730-08-000034.txt : 20080528 0000893730-08-000034.hdr.sgml : 20080528 20080528144533 ACCESSION NUMBER: 0000893730-08-000034 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080331 FILED AS OF DATE: 20080528 DATE AS OF CHANGE: 20080528 EFFECTIVENESS DATE: 20080528 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTEGRITY FUNDS CENTRAL INDEX KEY: 0000893730 IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-07322 FILM NUMBER: 08863238 BUSINESS ADDRESS: STREET 1: 1 MAIN STREET NORTH CITY: MINOT STATE: ND ZIP: 58703 BUSINESS PHONE: 7018525292 MAIL ADDRESS: STREET 1: 1 MAIN STREET NORTH CITY: MINOT STATE: ND ZIP: 58703 FORMER COMPANY: FORMER CONFORMED NAME: CANANDAIGUA FUNDS DATE OF NAME CHANGE: 19980209 FORMER COMPANY: FORMER CONFORMED NAME: CANANDAIGUA NATIONAL COLLECTIVE INV FD FOR QUAL TRUSTS DATE OF NAME CHANGE: 19930225 0000893730 S000000137 Integrity Small Cap Growth Fund C000000304 Integrity Small Cap Growth Fund Class A ICPAX 0000893730 S000000138 Integrity Health Sciences Fund C000000305 Integrity Health Sciences Fund Class A IHLAX 0000893730 S000000140 Integrity High Income Fund C000000308 Integrity High Income Fund Class A IHFAX C000000309 Integrity High Income Fund Class C IHFCX 0000893730 S000011868 INTEGRITY GROWTH & INCOME FUND C000032429 INTEGRITY GROWTH & INCOME FUND CLASS A IGIAX 0000893730 S000011870 Integrity Technology Fund C000032432 Integrity Technology Fund Class A ITKAX 0000893730 S000019087 Integrity Total Return Income Fund C000052780 Class A C000052781 Class C N-Q 1 ifsnq20080528.htm 1ST QUARTER N-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-07322

The Integrity Funds
(Exact name of registrant as specified in charter)

1 Main Street North, Minot, North Dakota 58703
(Address of principal executive offices) (Zip code)

Brent Wheeler, 1 Main Street North, Minot, North Dakota 58703
(Name and address of agent for service)

Registrant's telephone number, including area code: 701-852-5292

Date of fiscal year end: December 31

Date of reporting period: March 31, 2008

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§ § 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Schedule of Investments

INTEGRITY GROWTH AND INCOME FUND

 

 

 

Schedule of Investments March 31, 2008 (Unaudited)

 

 

 

 

 

 

 

Name of Issuer

 

 

 

Percentages represent the market value of each investment category to total net assets

Quantity

 

Market Value

 

 

 

 

COMMON STOCK (92.5%)

 

 

 

 

 

 

 

Business Software & Services (4.3%)

 

 

 

*EPIQ Systems, Inc.

100,000

$

1,552,000

 

 

 

 

Chemicals (3.3%)

 

 

 

3M Co.

15,000

 

1,187,250

 

 

 

 

Commercial Services (6.1%)

 

 

 

*Fuel Tech Inc

40,000

 

820,000

Western Union Company

65,000

 

1,382,550

 

 

 

2,202,550

Consumer Products (4.1%)

 

 

 

H.J. Heinz Co

20,000

 

939,400

Siemens AG--ADR

5,000

 

544,700

 

 

 

1,484,100

Drugs and Pharmaceuticals (2.7%)

 

 

 

Johnson & Johnson

15,000

 

973,050

 

 

 

 

Electrical Components & Equip. (2.8%)

 

 

 

*Nvidia Corp.

30,000

 

593,700

*Suntech Power Holdings--ADR

10,000

 

405,600

 

 

 

999,300

Energy (11.8%)

 

 

 

General Electric

35,000

 

1,295,350

*Ocean Power Technologies

50,000

 

611,000

Ormat Technologies Inc

20,000

 

860,200

*Vestas Wind Energy--ADR

40,000

 

1,474,000

 

 

 

4,240,550

Financial (4.0%)

 

 

 

American Express Company

15,000

 

655,800

Wilmington Trust Corp

25,000

 

777,500

 

 

 

1,433,300

Gas (2.7%)

 

 

 

*Suburban Propane Partners

25,000

 

970,750

 

 

 

 

Healthcare (5.5%)

 

 

 

Quest Diagnostics Inc

25,000

 

1,131,750

*Waters Corp

15,000

 

835,500

 

 

 

1,967,250

Machinery & Equipment (3.5%)

 

 

 

Graco, Inc

25,000

 

906,500

*Sunpower Corp Class A

5,000

 

372,550

 

 

 

1,279,050

Metals (6.4%)

 

 

 

Agnico-Eagles Mines Ltd

10,000

 

677,100

BHP Billiton Ltd

25,000

 

1,646,250

 

 

 

2,323,350

Oil And Gas Operations (7.6%)

 

 

 

Chesapeake Energy Corp

30,000

 

1,384,500

*McDermott International Inc.

25,000

 

1,370,500

 

 

 

2,755,000

Publishing (2.8%)

 

 

 

John Wiley & Sons, Inc.

25,000

 

992,500

 

 

 

 

Real Estate Investment Trusts (1.3%)

 

 

 

CapitalSource Inc

50,000

 

483,500

 

 

 

 

Restaurants (2.4%)

 

 

 

*Panera Bread Company

20,000

 

837,800

 

 

 

 

Retail (2.1%)

 

 

 

Barnes & Noble

25,000

 

766,250

 

 

 

 

Scientific/Technical Instruments (3.3%)

 

 

 

*Energy Conversion Devices

40,000

 

1,196,000

 

 

 

 

Semiconductor (8.8%)

 

 

 

Applied Materials

50,000

 

975,500

Linear Technology Corp.

35,000

 

1,074,150

Texas Instruments, Inc.

40,000

 

1,130,800

 

 

 

3,180,450

Software And Programming (2.9%)

 

 

 

Microsoft Corp.

37,000

 

1,050,060

 

 

 

 

Transportation (2.0%)

 

 

 

Forward Air Corporation

20,000

 

708,800

 

 

 

 

Utilities (2.1%)

 

 

 

Emerson Electric Co.

15,000

 

771,900

 

 

 

 

TOTAL COMMON STOCKS (COST: $34,116,548)

 

$

33,354,760

 

 

 

 

SHORT-TERM SECURITIES (7.5%)

Shares

 

Wells Fargo Advantage Investment Money Market (COST: $2,714,809)

2,714,809

$

2,714,809

 

 

 

 

TOTAL INVESTMENTS IN SECURITIES (COST: $36,831,357)

 

$

36,069,569

OTHER ASSETS LESS LIABILITIES

 

 

(9,475)

 

 

 

 

NET ASSETS

 

$

36,060,094

 

 

 

 

*Non-income producing

 

 

 

ADR--American Depository Receipt

 

 

 

 

 

 

 

Note: INVESTMENT IN SECURITIES

 

 

 

At March 31, 2008, the aggregate cost of securities for federal income tax purposes was substantially the same for financial reporting purposes at $36,831,357. The net unrealized depreciation of investments based on the cost was $761,788, which is comprised of $1,500,796 aggregate gross unrealized appreciation and $2,262,584 aggregate gross unrealized depreciation.

 

 

 

 

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 157 Fair Value Measurements. This standard defines fair value, and establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements.

 

 

 

 

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels:

 

 

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including 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 the fair value of investments)

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2008:

 

 

Valuation Inputs

Investments in Securities

 

 

Level 1--Quoted Prices

$36,069,569

 

 

Level 2--Other Significant Observable Inputs

-

 

 

Level 3--Significant Unobservable Inputs

-

 

 

Total

$36,069,569

 

 

 

INTEGRITY HEALTH SCIENCES FUND

Schedule of Investments March 31, 2008 (Unaudited)

 

 

 

 

Name of Issuer

 

 

 

Percentages represent the market value of each investment category to total net assets

Quantity

 

Market Value

 

 

 

 

SHORT-TERM SECURITIES

Shares

 

 

Wells Fargo Advantage Investment Money Market (COST: $839,389)

839,389

$

839,389

 

 

 

 

TOTAL INVESTMENTS IN SECURITIES (COST: $839,389)

 

$

839,389

OTHER ASSETS LESS LIABILITIES

 

 

(64,225)

 

 

 

 

NET ASSETS

 

$

775,164

 

 

 

 

Note: INVESTMENT IN SECURITIES

 

 

 

At March 31, 2008 the aggregate cost of securities for federal income tax purposes was substantially the same for financial reporting purposes at $839,389. The net unrealized appreciation of investments based on the cost was $0, which is is comprised of $0 aggregate gross unrealized appreciation and $0 aggregate gross unrealized depreciation.

 

 

 

 

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 157 Fair Value Measurements. This standard defines fair value, and establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements.

 

 

 

 

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels:

 

 

 

 

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including 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 the fair value of investments)

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2008:

 

 

 

 

Valuation Inputs

Investments in Securities

 

 

Level 1--Quoted Prices

$839,389

 

 

Level 2--Other Significant Observable Inputs

-

 

 

Level 3--Significant Unobservable Inputs

-

 

 

Total

$839,389

 

 

 

INTEGRITY HIGH INCOME FUND

Schedule of Investments March 31, 2008 (Unaudited)

 

 

 

 

 

 

 

 

Name of Issuer

 

 

 

 

 

 

 

Percentages represent the market value of each investment category to total net assets

 

Coupon Rate

Maturity

 

Principal Amount

 

Market Value

 

 

 

 

 

 

 

 

CORPORATE BONDS (83.1%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto-Cars/Light Trucks (1.6%)

 

 

 

 

 

 

 

American Axle

 

7.875%

03/01/2017

 

2,000,000

$

1,697,960

United Rentals North

 

6.500

02/15/2012

 

156,000

 

141,472

 

 

 

 

 

 

 

1,839,432

Broadcast Serv/Program (12.8%)

 

 

 

 

 

 

 

Sirius Satellite Radio

 

9.625

08/01/2013

 

7,915,000

 

6,715,719

XM Satellite Radio

 

9.750

05/01/2014

 

8,016,000

 

7,775,520

 

 

 

 

 

 

 

14,491,239

Building-Residential/Commer (11.8%)

 

 

 

 

 

 

 

K Hovnanian Enterprises

 

6.250

01/15/2016

 

600,000

 

408,000

*Kimball Hill Inc.

 

10.500

12/15/2012

 

7,856,000

 

945,312

William Lyon Homes

 

10.750

04/01/2013

 

4,461,000

 

2,319,720

M/I Homes Inc.

 

6.875

04/01/2012

 

5,414,000

 

4,628,970

Standard Pacific Corporation

 

6.250

04/01/2014

 

243,000

 

174,960

*Tousa Inc.

 

9.000

07/01/2010

 

1,936,000

 

962,424

*Tousa Inc.

 

7.500

03/15/2011

 

243,000

 

19,440

*Tousa Inc.

 

10.375

07/01/2012

 

4,254,000

 

425,400

*Tousa Inc.

 

7.500

01/15/2015

 

2,598,000

 

240,315

WCI Communities Inc.

 

9.125

05/01/2012

 

4,556,000

 

2,355,953

WCI Communities Inc.

 

6.625

03/15/2015

 

2,018,000

 

988,820

 

 

 

 

 

 

 

13,469,314

Casino Hotels (8.8%)

 

 

 

 

 

 

 

MGM Mirage

 

6.625

07/15/2015

 

4,229,000

 

3,705,661

Magna Entertainment

 

7.250

12/15/2009

 

1,304,000

 

886,720

Trump Entertainment Resorts

 

8.500

06/01/2015

 

8,080,000

 

5,433,800

 

 

 

 

 

 

 

10,026,181

Construction Materials (5.3%)

 

 

 

 

 

 

 

US Concrete Inc.

 

8.375

04/01/2014

 

7,541,000

 

6,055,649

 

 

 

 

 

 

 

 

Electronic Comp-Semicon (6.9%)

 

 

 

 

 

 

 

Advanced Micro Devices

 

7.750

11/01/2012

 

2,789,000

 

2,310,910

Amkor Technologies, Inc.

 

7.750

05/15/2013

 

4,494,000

 

4,123,245

Amkor Technologies, Inc.

 

9.250

06/01/2016

 

1,435,000

 

1,388,980

 

 

 

 

 

 

 

7,823,135

Finance - Auto Loans (2.8%)

 

 

 

 

 

 

 

Ford Motor Credit Co

 

7.000

10/01/2013

 

3,974,000

 

3,190,129

 

 

 

 

 

 

 

 

Finance - Other Services (3.0%)

 

 

 

 

 

 

 

AMR Real Estate Partners

 

7.125

02/15/2013

 

3,781,000

 

3,455,002

 

 

 

 

 

 

 

 

Food - Retail (5.1%)

 

 

 

 

 

 

 

Landry's Restaurant

 

9.500

12/15/2014

 

5,947,000

 

5,849,112

 

 

 

 

 

 

 

 

Medical - Hospitals (2.4%)

 

 

 

 

 

 

 

Tenet Healthcare Corp.

 

9.875

07/01/2014

 

2,821,000

 

2,736,370

 

 

 

 

 

 

 

 

Miscellaneous Manufacturer (0.2%)

 

 

 

 

 

 

 

*Propex Fabrics Inc.

 

10.000

12/01/2012

 

2,118,000

 

248,865

 

 

 

 

 

 

 

 

Oil Co. - Explor. & Prod. (13.5%)

 

 

 

 

 

 

 

Brigham Exploration Co.

 

9.625

05/01/2014

 

7,646,000

 

6,633,211

Callon Petroleum

 

9.750

12/08/2010

 

2,218,000

 

2,138,795

Comstock Resources Inc

 

6.875

03/01/2012

 

275,000

 

260,695

Encore Acquisition

 

6.000

07/15/2015

 

2,282,000

 

2,065,210

Clayton William Energy

 

7.750

08/01/2013

 

4,999,000

 

4,311,388

 

 

 

 

 

 

 

15,409,299

Oil Refining & Marketing (4.7%)

 

 

 

 

 

 

 

Aventine Renewable Energy

 

10.000

04/01/2017

 

7,097,000

 

4,633,064

United Refining

 

10.500

08/15/2012

 

718,000

 

713,067

 

 

 

 

 

 

 

5,346,131

Resorts--Themeparks (3.0%)

 

 

 

 

 

 

 

Six Flags Inc.

 

8.875

02/01/2010

 

173,000

 

118,454

Six Flags Inc.

 

9.750

04/15/2013

 

5,708,000

 

3,250,991

 

 

 

 

 

 

 

3,369,445

Telephone-Integrated (1.2%)

 

 

 

 

 

 

 

Level 3 Fin. Inc.

 

9.250

11/01/2014

 

1,706,000

 

1,391,021

 

 

 

 

 

 

 

 

TOTAL CORPORATE BONDS (COST: $128,483,808)

$

94,700,324

 

 

 

 

 

 

 

 

U.S. COMMON STOCKS (0.1%)

 

 

 

 

Shares

 

 

Spacehab, Inc. (COST: $995,996)

 

 

 

 

231,817

$

132,136

 

 

 

 

 

 

 

 

SHORT-TERM SECURITIES (14.3%)

 

 

 

 

Shares

 

 

Wells Fargo Advantage Investment Money Market (COST: $16,266,347)

 

16,266,347

$

16,266,347

 

 

 

 

 

 

 

 

TOTAL INVESTMENTS IN SECURITIES (COST: $145,746,151)

 

 

$

111,098,807

OTHER ASSETS LESS LIABILITIES

 

 

 

 

 

 

2,873,452

 

 

 

 

 

 

 

 

NET ASSETS

 

 

 

 

 

$

113,972,259

 

 

 

 

 

 

 

 

*Non-income producing due to default

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: INVESTMENT IN SECURITIES

 

 

 

 

 

 

 

At March 31, 2008, the aggregate cost of securities for federal income tax purposes was substantially the same for financial reporting purposes at $145,746,151. The net unrealized depreciation of investments based on the cost was $34,647,344, which is comprised of $143,825 aggregate gross unrealized appreciation and $34,791,169 aggregate gross unrealized depreciation.

 

 

 

 

 

 

 

 

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 157 Fair Value Measurements. This standard defines fair value, and establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements.

 

 

 

 

 

 

 

 

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels:

 

 

 

 

 

 

 

 

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including 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 the fair value of investments)

 

 

 

 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2008:

 

 

 

 

 

 

 

 

Valuation Inputs

Investments in Securities

 

 

 

 

 

 

Level 1--Quoted Prices

$16,398,483

 

 

 

 

 

 

Level 2--Other Significant Observable Inputs

94,700,324

 

 

 

 

 

 

Level 3--Significant Unobservable Inputs

--

 

 

 

 

 

 

Total

$111,098,807

 

 

 

 

 

 

 

INTEGRITY SMALL CAP GROWTH FUND

Schedule of Investments March 31, 2008 (Unaudited)

 

 

 

 

Name of Issuer

 

 

 

Percentages represent the market value of each investment category to total net assets

Quantity

 

Market Value

 

 

 

 

COMMON STOCK (78.2%)

 

 

 

 

 

 

 

Biotechnology & Drugs (5.1%)

 

 

 

*Martek Biosciences Corporation

3,000

$

91,710

 

 

 

 

Business Software & Services (5.2%)

 

 

 

*EPIQ Systems, Inc.

6,000

 

93,120

 

 

 

 

Commercial Services (4.0%)

 

 

 

*Fuel Tech Inc

3,500

 

71,750

 

 

 

 

Communications Equipment (2.3%)

 

 

 

*Audiocodes LTD

10,000

 

40,100

 

 

 

 

Computer Services (2.6%)

 

 

 

*Telvent GIT, S.A.

2,000

 

47,300

 

 

 

 

Diversified Machinery (3.3%)

 

 

 

*ESCO Technologies

1,500

 

59,580

 

 

 

 

Energy (5.8%)

 

 

 

*Ocean Power Technologies

5,000

 

61,100

Ormat Technologies Inc

1,000

 

43,010

 

 

 

104,110

Financial (2.6%)

 

 

 

Heartland Payment Systems, Inc

2,000

 

46,020

 

 

 

 

Healthcare (8.1%)

 

 

 

*Neogen Corp

3,500

 

87,850

*Nighthawk Radiology Holdings

6,000

 

56,160

 

 

 

144,010

Oil & Gas Refining & Marketing (5.0%)

 

 

 

*Basic Energy Svcs

4,000

 

88,320

 

 

 

 

Publishing (4.4%)

 

 

 

John Wiley & Sons, Inc.

2,000

 

79,400

 

 

 

 

Real Estate Investment Trusts (2.2%)

 

 

 

CapitalSource Inc

4,000

 

38,680

 

 

 

 

Restaurants (4.7%)

 

 

 

*Panera Bread Company

2,000

 

83,780

 

 

 

 

Scientific/Technical Instruments (5.9%)

 

 

 

*Energy Conversion Devices

3,500

 

104,650

 

 

 

 

Semiconductor (8.3%)

 

 

 

Micrel Inc

10,000

 

92,700

*Varian Semiconductor

2,000

 

56,300

 

 

 

149,000

Transportation (8.7%)

 

 

 

Forward Air Corporation

3,000

 

106,320

Pacer International, Inc

3,000

 

49,290

 

 

 

155,610

 

 

 

 

TOTAL COMMON STOCKS (COST: $1,578,109)

 

$

1,397,140

 

 

 

 

SHORT-TERM SECURITIES (22.4%)

Shares

 

Wells Fargo Advantage Investment Money Market (COST: $399,574)

399,574

$

399,574

 

 

 

 

TOTAL INVESTMENTS IN SECURITIES (COST: $1,977,683)

 

$

1,796,714

OTHER ASSETS LESS LIABILITIES

 

 

(10,751)

 

 

 

 

NET ASSETS

 

$

1,785,963

 

 

 

 

*Non-income producing

 

 

 

 

 

 

 

Note: INVESTMENT IN SECURITIES

 

 

 

At March 31, 2008, the aggregate cost of securities for federal income tax purposes was substantially the same for financial reporting purposes at $1,977,683. The net unrealized depreciation of investments based on the cost was $180,969, which is comprised of $46,515 aggregate gross unrealized appreciation and $227,484 aggregate gross unrealized depreciation.

 

 

 

 

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 157 Fair Value Measurements. This standard defines fair value, and establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements.

 

 

 

 

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels:

 

 

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including 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 the fair value of investments)

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2008:

 

 

Valuation Inputs

Investments in Securities

 

 

Level 1--Quoted Prices

$1,796,714

 

 

Level 2--Other Significant Observable Inputs

--

 

 

Level 3--Significant Unobservable Inputs

--

 

 

Total

$1,796,714

 

 

 

INTEGRITY TECHNOLOGY FUND

 

 

 

Schedule of Investments March 31, 2008 (Unaudited)

 

 

 

 

 

 

 

Name of Issuer

 

 

 

Percentages represent the market value of each investment category to total net assets

Quantity

 

Market Value

 

 

 

 

COMMON STOCK (34.5%)

 

 

 

 

 

 

 

Business Software & Services (11.2%)

 

 

 

*EPIQ Systems, Inc.

8,000

$

124,160

 

 

 

 

Commercial Services (6.5%)

 

 

 

*Fuel Tech Inc

3,500

 

71,750

 

 

 

 

Diversified Electronic (4.9%)

 

 

 

*Benchmark Electronic

3,000

 

53,850

 

 

 

 

Energy (6.7%)

 

 

 

*Vestas Wind Energy ADR

2,000

 

73,700

 

 

 

 

Telecommunications (5.2%)

 

 

 

*Trimble Navigation

2,000

 

57,180

 

 

 

 

TOTAL COMMON STOCKS (COST: $331,916)

 

$

380,640

 

 

 

 

SHORT-TERM SECURITIES (73.3%)

Shares

 

 

Wells Fargo Advantage Investment Money Market (COST: $809,515)

809,515

$

809,515

 

 

 

 

TOTAL INVESTMENTS IN SECURITIES (COST: $1,141,431)

 

$

1,190,155

OTHER ASSETS LESS LIABILITIES

 

 

(85,628)

 

 

 

 

NET ASSETS

 

$

1,104,527

 

 

 

 

*Non-income producing

 

 

 

ADR--American Depository Receipt

 

 

 

 

 

 

 

Note: INVESTMENT IN SECURITIES

 

 

 

At March 31, 2008 the aggregate cost of securities for federal income tax purposes was substantially the same for financial reporting purposes at $1,141,431. The net unrealized appreciation of investments based on the cost was $48,724, which is comprised of $63,787 aggregate gross unrealized appreciation and $15,063 aggregate gross unrealized depreciation.

 

 

 

 

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 157 Fair Value Measurements. This standard defines fair value, and establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements.

 

 

 

 

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels:

 

 

 

 

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including 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 the fair value of investments)

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2008:

 

 

 

 

Valuation Inputs

 

Investments in Securities

Level 1--Quoted Prices

 

$

1,190,155

Level 2--Other Significant Observable Inputs

 

 

--

Level 3--Significant Unobservable Inputs

 

 

--

Total

 

$

1,190,155

 

INTEGRITY TOTAL RETURN FUND

Schedule of Investments March 31, 2008 (Unaudited)

 

 

 

 

 

 

 

 

Name of Issuer

 

 

 

 

 

 

 

Percentages represent the market value of each investment category to total net assets

 

 

 

 

Quantity

 

Market Value

 

 

 

 

 

 

 

 

COMMON STOCK (45.0%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airlines (0.8%)

 

 

 

 

 

 

 

Aircastle Ltd

 

 

 

 

4,300

$

48,375

 

 

 

 

 

 

 

 

Banks (4.1%)

 

 

 

 

 

 

 

Bank of America

 

 

 

 

4,200

 

159,222

Citigroup Inc

 

 

 

 

3,800

 

81,396

 

 

 

 

 

 

 

240,618

Business Software & Services (1.4%)

 

 

 

 

 

 

 

TICC Capital Corp

 

 

 

 

11,100

 

83,472

 

 

 

 

 

 

 

 

Drugs and Pharmaceuticals (1.8%)

 

 

 

 

 

 

 

Pfizer Inc.

 

 

 

 

5,100

 

106,743

 

 

 

 

 

 

 

 

Energy (1.0%)

 

 

 

 

 

 

 

NGP Capital Resources Company

 

 

 

 

3,700

 

60,754

 

 

 

 

 

 

 

 

Financial (18.7%)

 

 

 

 

 

 

 

Allied Capital Corp

 

 

 

 

2,600

 

47,918

American Capital Strategies

 

 

 

 

5,300

 

181,048

Apollo Investment Corporation

 

 

 

 

12,000

 

189,960

Ares Capital Corp

 

 

 

 

13,300

 

167,181

Ares Capital Corp--Rights

 

 

 

 

4,433

 

2,482

The Blackstone Group, LP

 

 

 

 

7,600

 

120,688

Fortress Investment Group, LP

 

 

 

 

10,600

 

130,168

Gladstone Investment Corp

 

 

 

 

8,300

 

78,103

Kohlberg Capital Corporation

 

 

 

 

4,305

 

44,686

Wachovia Corp.

 

 

 

 

5,000

 

135,000

 

 

 

 

 

 

 

1,097,234

Media (0.8%)

 

 

 

 

 

 

 

MCG Capital Corporation

 

 

 

 

4,900

 

44,541

 

 

 

 

 

 

 

 

Oil And Gas Operations (3.6%)

 

 

 

 

 

 

 

Boardwalk Pipeline Partners

 

 

 

 

1,900

 

46,759

Buckeye Partners LP

 

 

 

 

2,400

 

110,640

TC Pipelines, LP

 

 

 

 

1,600

 

55,008

 

 

 

 

 

 

 

212,407

Real Estate Investment Trusts (8.8%)

 

 

 

 

 

 

 

Arbor Realty Trust, Inc

 

 

 

 

3,400

 

51,272

Entertainment Properties Trust

 

 

 

 

1,900

 

93,727

National Retail Properties Inc

 

 

 

 

4,000

 

88,200

Prospect Capital Corporation

 

 

 

 

8,200

 

124,804

Sovran Self Storage, Inc

 

 

 

 

2,200

 

93,962

U-Store-It Trust

 

 

 

 

5,900

 

66,847

 

 

 

 

 

 

 

518,812

Transportation (4.0%)

 

 

 

 

 

 

 

Ship Finance International Ltd

 

 

 

 

2,100

 

55,188

Seaspan Corp.

 

 

 

 

4,800

 

136,752

OceanFreight Inc.

 

 

 

 

2,000

 

43,780

 

 

 

 

 

 

 

235,720

 

 

 

 

 

 

 

 

TOTAL COMMON STOCK (COST:$ 3,422,159)

 

 

 

 

 

$

2,648,676

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coupon Rate

Maturity

 

Principal Amount

 

Market Value

 

 

 

 

 

 

 

 

CORPORATE BONDS (45.7%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto-Cars/Light Trucks (1.3%)

 

 

 

 

 

 

 

American Axle

 

7.875%

03/01/2017

 

88,000

$

74,710

 

 

 

 

 

 

 

 

Broadcast Serv/Program (3.6%)

 

 

 

 

 

 

 

Sirius Satellite Radio

 

9.625

08/01/2013

 

103,000

 

87,394

XM Satellite Radio

 

9.750

05/01/2014

 

126,000

 

122,220

 

 

 

 

 

 

 

209,614

Building-Residential/Commer (2.9%)

 

 

 

 

 

 

 

Kimball Hill Inc.

 

10.500

12/15/2012

 

83,000

 

9,987

William Lyon Homes

 

10.750

04/01/2013

 

80,000

 

41,600

M/I Homes Inc.

 

6.875

04/01/2012

 

136,000

 

116,280

 

 

 

 

 

 

 

167,867

Casino Hotels (2.7%)

 

 

 

 

 

 

 

Trump Entertainment Resorts

 

8.500

06/01/2015

 

236,000

 

158,710

 

 

 

 

 

 

 

 

Construction Materials (1.8%)

 

 

 

 

 

 

 

US Concrete Inc.

 

8.375

04/01/2014

 

131,000

 

105,197

 

 

 

 

 

 

 

 

Electronic Comp-Semicon (4.1%)

 

 

 

 

 

 

 

Advanced Micro Devices

 

7.750

11/01/2012

 

139,000

 

115,173

Amkor Technologies, Inc.

 

9.250

06/01/2016

 

128,000

 

123,895

 

 

 

 

 

 

 

239,068

Finance - Auto Loans (2.0%)

 

 

 

 

 

 

 

Ford Motor Credit Co

 

7.000

10/01/2013

 

144,000

 

115,596

 

 

 

 

 

 

 

 

Finance - Other Services (1.2%)

 

 

 

 

 

 

 

AMR Real Estate Partners

 

7.125

02/15/2013

 

80,000

 

73,102

 

 

 

 

 

 

 

 

Food - Retail (3.0%)

 

 

 

 

 

 

 

Landry's Restaurant

 

9.500

12/15/2014

 

179,000

 

176,054

 

 

 

 

 

 

 

 

Health Care (1.9%)

 

 

 

 

 

 

 

Nektar Therapeutics

 

3.250

09/28/2012

 

144,000

 

111,060

 

 

 

 

 

 

 

 

Medical - Hospitals (1.8%)

 

 

 

 

 

 

 

Tenet Healthcare Corp.

 

9.875

07/01/2014

 

110,000

 

106,700

 

 

 

 

 

 

 

 

Oil Co. - Explor. & Prod. (3.9%)

 

 

 

 

 

 

 

Brigham Exploration Co.

 

9.625

05/01/2014

 

132,000

 

114,515

Clayton William Energy

 

7.750

08/01/2013

 

130,000

 

112,119

 

 

 

 

 

 

 

226,634

Oil Refining & Marketing (3.5%)

 

 

 

 

 

 

 

Aventine Renewable Energy

 

10.000

04/01/2017

 

143,000

 

93,353

Verasun Energy Corp

 

9.875

12/15/2012

 

118,000

 

111,042

 

 

 

 

 

 

 

204,395

Resorts - Themeparks (2.2%)

 

 

 

 

 

 

 

Six Flags Inc.

 

9.750

04/15/2013

 

231,000

 

131,566

 

 

 

 

 

 

 

 

Retail - Auto Parts (1.1%)

 

 

 

 

 

 

 

Pep Boys

 

7.500

12/15/2014

 

78,000

 

65,767

 

 

 

 

 

 

 

 

Telephone-Integrated (2.8%)

 

 

 

 

 

 

 

Level 3 Fin. Inc.

 

9.250

11/01/2014

 

203,000

 

165,520

 

 

 

 

 

 

 

 

Wireless Equipment (6.1%)

 

 

 

 

 

 

 

Cricket Commucations

 

9.375

11/01/2014

 

193,000

 

183,919

MetroPCS Wireless

 

9.250

11/01/2014

 

191,000

 

176,759

 

 

 

 

 

 

 

360,678

 

 

 

 

 

 

 

 

TOTAL CORPORATE BONDS (COST: $3,030,233)

 

 

 

 

 

$

2,692,238

 

 

 

 

 

 

 

 

SHORT-TERM SECURITIES (7.3%)

 

 

 

 

Shares

 

 

Wells Fargo Advantage Investment Money Market (COST: $429,578)

 

 

 

429,578

$

429,578

 

 

 

 

 

 

 

 

TOTAL INVESTMENTS IN SECURITIES (COST: $6,881,970)

 

 

 

 

$

5,770,492

OTHER ASSETS LESS LIABILITIES

 

 

 

 

 

 

120,042

 

 

 

 

 

 

 

 

NET ASSETS

 

 

 

 

 

$

5,890,534

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: INVESTMENT IN SECURITIES

 

 

 

 

 

 

 

At March 31, 2008 the aggregate cost of securities for federal income tax purposes was substantially the same for financial reporting purposes at $6,881,970. The net unrealized depreciation of investments based on the cost was $1,111,478, which is comprised of $37,184 aggregate gross unrealized appreciation and $1,148,622 aggregate gross unrealized depreciation.

 

 

 

 

 

 

 

 

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 157 Fair Value Measurements. This standard defines fair value, and establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements.

 

 

 

 

 

 

 

 

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels:

 

 

 

 

 

 

 

 

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including 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 the fair value of investments)

 

 

 

 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2008:

 

 

 

 

 

 

 

 

Valuation Inputs

Investments in Securities

 

 

 

 

Level 1 - Quoted Prices

 

$

3,078,254

 

 

 

 

Level 2--Other Significant Observable Inputs

 

 

2,692,238

 

 

 

 

Level 3--Significant Unobservable Inputs

 

 

--

 

 

 

 

Total

 

$

5,770,492

 

 

 

 

Item 2. Controls and Procedures

 

(a)

The certifying officers, whose certifications are included herewith, have evaluated the registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this Form N-Q (the "Report"). The registrant's principal executive officer and principal financial officer believe that the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are adequately designed to ensure that material information relating to the registrant is made known to them by others, particularly during the period in which this report is being prepared, so that there is time to allow for decisions regarding required disclosure. Further, in their opinion, the registrant's disclosure controls and procedures are adequately designed, and are operating effectively, to ensure that information required to be disclosed by the registrant in the Report is recorded, processed, summarized and reported by the filing date.

 

 

 

 

(b)

There were no significant changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant's most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 3. Exhibits

 

(a)

(1)

Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 is filed and attached hereto.

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.

The Integrity Funds

By:

/s/Robert E. Walstad

Robert E. Walstad

Interim President

Date: May 28, 2008

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.

The Integrity Funds

By:

/s/Robert E. Walstad

Robert E. Walstad

Interim President

Date: May 28, 2008

By:

/s/Adam Forthun

Adam Forthun

Treasurer

Date: May 28, 2008

EX-99.CERT 2 ifscert20080528.htm 1ST QUARTER CERTIFICATION

CERTIFICATIONS

 

I, Robert E. Walstad, certify that:

 

 

 

 

1.

I have reviewed this report on Form N-Q of The Integrity Funds;

 

 

 

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

 

 

 

3.

Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

 

 

 

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

 

 

 

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

 

 

 

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

 

 

 

 

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

 

 

 

 

 

(d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

 

 

 

 

5.

The registrant's certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

 

 

 

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

 

 

 

 

 

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

 

 

 

 

 

 

 

 

 

 

Date: May 28, 2008

 

/s/ Robert E. Walstad

 

Interim President

 

 

 

 

 

[Signature]

 

[Title]


CERTIFICATIONS

 

I, Adam Forthun, certify that:

 

 

 

 

1.

I have reviewed this report on Form N-Q of The Integrity Funds;

 

 

 

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

 

 

 

3.

Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

 

 

 

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

 

 

 

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

 

 

 

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

 

 

 

 

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

 

 

 

 

 

(d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

 

 

 

 

5.

The registrant's certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

 

 

 

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

 

 

 

 

 

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

 

 

 

 

 

 

 

 

 

 

Date: May 28, 2008

 

/s/Adam Forthun

 

Treasurer

 

 

 

 

 

[Signature]

 

[Title]

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