N-Q 1 e1645.htm

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES

811-22172
Investment Company Act file number

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

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

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

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

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

Date of fiscal year end: 12/31

Date of reporting period: 03/31/2015


ITEM 1. SCHEDULE OF INVESTMENTS

B. RILEY DIVERSIFIED EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2015
(unaudited)
 
 
Number                        
of           % of         Fair  
Shares     Security Description   Net Assets       Value  
                   
      COMMON STOCKS     100.33 %          
                         
      ADVERTISINIG     1.89 %          
11,254     The Rubicon Project, Inc.             $ 201,672  
                       
                         
      AEROSPACE & DEFENSE PARTS     0.48 %          
4,166     CPI Aerostructures, Inc.               50,825  
                       
                         
      AUTO PARTS     1.86 %          
8,936     Remy International, Inc.               198,469  
                       
                         
      BEVERAGES     2.34 %          
2,040     Farmer Brothers Co.               50,490  
38,083     Primo Water Corp.               199,174  
                       
                      249,664  
                       
                         
      CABLE & SATELLITE     0.47 %          
4,711     TiVo Inc.*               49,984  
                       
                         
      CHEMICALS     3.27 %          
2,460     Globe Specialty Metals Inc.               46,543  
4,204     Trecora Resources               51,289  
2,500     Tronox Ltd Class “A”               50,825  
2,250     WD-40 Co.               199,215  
                       
                      347,872  
                       
                         
      COMMUNICATIONS EQUIPMENT     11.95 %          
2,846     CalAmp Corp.               46,077  
5,124     ClearOne Inc.               54,622  
38,107     EMCORE Corp.               207,302  
9,692     Finisar Corp.               206,827  
172,157     GigOptix, Inc.               208,310  
7,429     I.D. Systems, Inc.               47,323  
4,538     NetScout Systems, Inc.               198,991  
2,670     Rovi Corp.               48,621  
5,497     Sonus Networks, Inc.               43,316  
3,550     ViaSat, Inc.               211,615  
                       
                      1,273,004  
                       
                         
      COMPUTER SERVICES     0.96 %          
7,100     Computer Task Group, Inc.               51,901  
5,504     Immersion Corp.               50,527  
                       
                      102,428  
                       
                         
      COMPUTER SOFTWARE     7.25 %          
5,552     American Software, Inc. Class A               56,741  
3,383     Callidus Software Inc.               42,896  
1,700     Cornerstone OnDemand, Inc.               49,113  
5,816     Evolving Systems, Inc.               50,657  
39,278     Guidance Software Inc.               212,494  
9,646     Lionbridge Technologies, Inc.               55,175  
8,700     MAM Software Group, Inc.               47,850  
1,700     Monotype Imaging Holdings Inc.               55,488  
29,935     RealNetworks, Inic.               201,463  
                       
                      771,877  
                       

B. RILEY DIVERSIFIED EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2015
(unaudited)
 
 
Number                        
of         % of       Fair  
Shares     Security Description   Net Assets       Value  
                   
      ELECTRONIC     0.92 %          
12,155     IEC Electronics Corp.             $ 45,338  
1,555     Imax Corp.               52,419  
                       
                      97,757  
                       
                         
      ENGINEERING SERVICES     1.92 %          
36,902     Kratos Defense & Security Solutions Inc.               204,068  
                       
                         
      ENTERTAINMENT     6.79 %          
1,450     AMC Entertainment Holdings               51,460  
3,963     Brunswick Corp.               203,896  
5,902     Carmike Cinemas, Inc.               198,307  
1,597     DTS, Inc.               54,410  
1,596     Lions Gate Entertainment Corp.               54,136  
3,534     National Cinemedia, Inc.               53,363  
1,121     Six Flags Entertainment Corp.               54,268  
2,517     The Marcus Corp.               53,587  
                       
                      723,427  
                       
                         
      FINANCE     1.36 %          
5,638     General Finance Corp.               45,499  
2,003     Kennedy-Wilson Holdings Inc               52,358  
7,595     Signature Group Holdings Inc.               46,633  
                       
                      144,490  
                       
                         
      HEALTHCARE     1.57 %          
320     Perrigo Co. PLC               52,976  
1,295     Prestige Brands Holdings, Inc.               55,543  
7,000     RadNet, Inc.               58,800  
                       
                      167,319  
                       
                         
      INFORMATION SERVICES     0.52 %          
278     CoStar Group Inc.               54,997  
                       
                         
      INTERNET BASED SERVICE     6.62 %          
6,500     8x8, Inc.               54,600  
6,991     Angie’s List Inc.               41,037  
6,306     Groupon, Inc.               45,466  
32,155     Monster Worldwide, Inc.               203,863  
8,442     Overstock.com, Inc.               204,465  
28,763     TheStreet Inc.               51,773  
5,719     Xcerra Corp.               50,842  
3,000     XO Group, Inc.               53,010  
                       
                      705,056  
                       
                         
      IT SERVICES     1.49 %          
31,210     Cinedigm Corp.               50,560  
4,961     PFSweb Inc.               54,521  
5,292     Rightside Group, Ltd.               53,714  
                       
                      158,795  
                       

B. RILEY DIVERSIFIED EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2015
(unaudited)
 
 
Number                        
of         % of       Fair  
Shares     Security Description   Net Assets       Value  
                   
      MANUFACTURING     4.24 %          
16,174     Arotech Corp.             $ 50,301  
2,000     Ducommun Inc.               51,800  
2,542     Fabrinet               48,273  
6,087     Inter Parfums, Inc.               198,558  
1,102     Methode Electronics Inc.               51,838  
1,844     Motorcar Parts of America, Inc.               51,245  
                       
                      452,015  
                       
                         
      MEDIA     5.71 %          
13,500     Autobytel Inc.               199,395  
9,158     Demand Media, Inc.               52,384  
90     Google Inc.               49,923  
5,447     Points International Ltd.               55,178  
15,876     RealD Inc.               203,054  
1,100     Yahoo! Inc.               48,879  
                       
                      608,813  
                       
                         
      PROFESSIONAL SERVICES     1.43 %          
2,843     Franklin Covey Co.               54,756  
12,351     Information Services Group, Inc.               49,280  
11,935     PRGX Global, Inc.               47,979  
                       
                      152,015  
                       
                         
      REAL ESTATE     0.47 %          
1,972     Reis , Inc.               50,562  
                       
                         
      RECREATIONAL PRODUCTS     0.42 %          
320     Polaris Industries Inc.               45,152  
                       
                         
      RETAIL     16.27 %          
4,500     1-800-Flowers.Com A               53,235  
3,000     American Eagle Outfitters, Inc.               51,240  
1,300     Best Buy Co., Inc.               49,127  
1,712     Blue Nile, Inc.               54,510  
1,200     Broadcom Corp. Class A               51,954  
10,146     Cherokee Inc.               197,644  
6,633     Conn’s, Inc.               200,847  
700     Deckers Outdoor Corp.               51,009  
5,450     DSW Inc.               200,996  
850     eBay Inc.               49,028  
1,700     FTD Companies, Inc.               50,898  
8,000     JAKKS Pacific, Inc.               54,720  
1,908     MarineMax, Inc.               50,581  
10,204     Nutrisysem, Inc.               203,876  
1,620     Sally Beauty Holdings, Inc.               55,679  
1,463     Steven Madden, Ltd.               55,594  
3,100     Tilly’s Inc Class A               48,515  
12,619     United Online, Inc.               201,021  
1,309     Zumiez Inc.               52,687  
                       
                      1,733,161  
                       
                         
      SEMICONDUCTOR     15.31 %          
156,497     Advanced Photonix, Inc.               62,599  
788     Analog Devices, Inc.               49,644  
21,310     Axcelis Technologies, Inc.               50,718  
4,056     Brooks Automation, Inc.               47,171  
800     Coherent, Inc.               51,968  
4,238     Cohu, Inc.               46,364  
4,900     Exar Corp.               49,245  
5,858     FormFactor Inc.               51,960  
1,600     Intel Corp.               50,032  
14,620     Intersil Corp.               209,358  
3,162     Kulicke & Soffa Indusries, Inc.               49,422  

B. RILEY DIVERSIFIED EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2015
(unaudited)
 
 
Number                        
of         % of       Fair  
Shares     Security Description   Net Assets       Value  
                   
700     Lam Research Corp.             $ 49,165  
3,500     Marvell Technology Group Ltd.               51,450  
12,475     Mattson Technology, Inc.               49,152  
6,975     Neophotonics Corp.               47,081  
2,665     Newport Corp.               50,795  
2,500     NVIDIA Corp.               52,313  
17,641     ON Semiconductor Corp.               213,633  
4,160     Rudolph Technologies, Inc.               45,843  
1,000     Silicon Laboratories Inc.               50,770  
2,003     Silicon Motion Technology Corp.               53,841  
2,000     Skyworks Solutions, Inc.               196,580  
900     Texas Instruments Inc.               51,467  
                       
                      1,630,571  
                       
                         
      TECHNOLOGY     2.42 %          
25,006     API Technologies Corp.               51,762  
17,857     Camtek, Ltd.               56,964  
2,200     Digimarc Corp.               48,290  
5,600     PCM Inc.               52,304  
36,523     WidePoint Corp.               48,210  
                       
                      257,530  
                       
                         
      TELECOMMUNICATIONS     0.50 %          
11,902     Earthlink Holdings Corp.               52,845  
                       
                         
      TRANSPORTATION     1.92 %          
43,936     Accuride Corp.               204,742  
                       
                         
      TOTAL COMMON STOCKS               10,689,110  
                       
                         
      NET INVESTMENTS IN SECURITIES     100.33 %       10,689,110  
      Liabilities, net of other assets     -0.33 %       (35,389 )
                   
      NET ASSETS     100.00 %     $ 10,653,721  
                   

Notes: Fair Value Measurements (unaudited)
Various inputs are used in determining the value of a Fund’s investments. 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 associates with investing in those securities.
 
The following is a summary of the inputs used to value the Fund’s investments as of March 31, 2015:

                       
    Level 1   Level 2   Level 3          
                       
              Other                    
              Significant   Significant          
              Observable   Unobservable          
    Quoted Prices   Inputs   Inputs   Total
                 
Common Stocks     $ 10,689,110       $ 0       $ 0         $10,689,110  
                 

There were no Level 3 investments held during the period. During the period, there were no transfers between Levels 1 and 2.

At March 31, 2015, the cost of investment for Federal income tax purposes has been estimated since the final tax characteristics cannot be determined until fiscal year end. Cost of securities for Federal Income tax purpose is $9,622,523 and the related tax-based net unrealized appreciation (depreciation) consists of:

  Gross unrealized apprection   $1,331,826  
  Gross unrealized depreciation   (265,239)  
         
  Net unrealized appreciation (depreciation)   $1,066,587  
         



ITEM 2. CONTROLS AND PROCEDURES.

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

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

ITEM 3. EXHIBITS.


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

Exhibit No.   Description of Exhibit

99.1   Certification of Principal Executive Officer

99.2   Certification of Principal Financial Officer


SIGNATURES

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

(Registrant) World Funds Trust
By: /s/ John Pasco, III
John Pasco, III Principal Executive Officer
Date: May 22, 2015

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

By: /s/ John Pasco, III
John Pasco, III
Principal Executive Officer
Date: May 22, 2015

By: /s/ Karen Shupe
Karen Shupe
Principal Financial Officer
Date: May 22, 2015