N-Q 1 fp0028251_nq.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-23125

ELEVATION ETF TRUST
 (Exact name of registrant as specified in charter)

1290 Broadway, Suite 1100, Denver, Colorado 80203
(Address of principal executive offices) (Zip code)

Andrea E. Kuchli, Esq., Secretary
Elevation ETF Trust
1290 Broadway, Suite 1100
Denver, Colorado 80203
 (Name and address of agent for service)

Registrant’s telephone number, including area code: (303) 623-2577

Date of fiscal year end: October 31

Date of reporting period: July 31, 2017

Item 1. Schedule of Investments.
 
SUMMIT WATER INFRASTRUCTURE MULTIFACTOR ETF
SCHEDULE OF INVESTMENTS
July 31, 2017 (Unaudited)

Security Description
  
Shares
    
Value
  
COMMON STOCKS (99.58%)
  
Consumer Discretionary (7.88%)
  
Coway Co., Ltd.
    
3,148
    
$
278,778
  
Enercare, Inc.
    
19,227
      
322,931
  
Total Consumer Discretionary
      
601,709
  
                 
Health Care (0.14%)
  
Cantel Medical Corp.
    
144
      
10,685
  
Total Health Care
      
10,685
  
                 
Industrials (52.33%)
  
Aalberts Industries NV
    
4,139
      
180,801
  
ANDRITZ AG
    
4,868
      
298,337
  
AO Smith Corp.
    
1,227
      
65,706
  
Belimo Holding AG
    
56
      
232,235
  
CITIC Envirotech, Ltd.
    
57,600
      
31,878
  
Forest Water Environment Engineering Co., Ltd.
    
108,000
      
214,244
  
Geberit AG
    
552
      
265,567
  
Georg Fischer AG
    
254
      
288,950
  
Global Brass & Copper Holdings, Inc.
    
612
      
19,615
  
Grupo Rotoplas SAB de CV
    
44,900
      
73,268
  
GWA Group, Ltd.
    
137,341
      
355,988
  
HomeServe PLC
    
21,434
      
205,030
  
IDEX Corp.
    
1,247
      
145,325
  
METAWATER Co., Ltd.
    
7,500
      
207,492
  
Miura Co., Ltd.
    
7,200
      
145,835
  
Nihon Trim Co., Ltd.
    
4,500
      
187,356
  
Pentair PLC
    
3,503
      
220,934
  
Polypipe Group PLC
    
50,451
      
267,059
  
Tianjin Capital Environmental Protection Group Co. Ltd., Class H
    
329,000
      
211,448
  
The Toro Co.
    
1,173
      
83,389
  
Valmont Industries, Inc.
    
284
      
43,367
  
Watts Water Technologies, Inc., Class A
    
1,551
      
99,885
  
Xylem, Inc.
    
2,736
      
155,213
  
Total Industrials
      
3,998,922
  
                 
Information Technology (1.27%)
  
Badger Meter, Inc.
    
2,150
      
97,287
  
Total Information Technology
      
97,287
  
                 
Materials (5.25%)
  
Ecolab, Inc.
    
843
      
110,998
  
Kemira Oyj
    
23,018
    
 
290,199
  
Total Materials
      
401,197
  
                 
Utilities (32.71%)
  
Aguas Andinas SA, Class A
    
470,393
      
296,284
  
Beijing Enterprises Water Group, Ltd.
    
108,000
      
89,737
  
China Water Affairs Group, Ltd.
    
261,000
      
142,349
  
Cia de Saneamento Basico do Estado de Sao Paulo
    
1,800
      
19,366
  
Cia de Saneamento de Minas Gerais-COPASA
    
1,500
      
20,386
  
Guangdong Investment, Ltd.
    
108,000
      
152,097
  
Hera SpA
    
47,071
      
152,123
  
Inversiones Aguas Metropolitanas SA
    
62,821
      
109,006
  
Kangda International Environmental Co. Ltd.(a)(b)
    
211,000
      
41,601
  
Manila Water Co., Inc.
    
182,000
      
115,418
  
Pennon Group PLC
    
16,463
      
174,856
  
Severn Trent PLC
    
5,077
      
150,049
  
SJW Group
    
1,279
      
67,621
  
Suez
    
13,259
      
239,835
  
TTW PCL
    
824,300
      
270,006
  
United Utilities Group PLC
    
15,975
      
189,170
  
YTL Power International Bhd
    
823,600
      
269,308
  
Total Utilities
      
2,499,212
  
                 
TOTAL COMMON STOCKS
          
(Cost $6,997,886)
            
7,609,012
  

7 Day Yield
    
Shares
    
Value
  
SHORT TERM INVESTMENTS (0.29%)
  
State Street Institutional Treasury Plus Money Market Fund, Premier Class
    
0.954
%
    
22,016
      
22,016
  
                         
TOTAL SHORT TERM INVESTMENTS
          
(Cost $22,016)
              
22,016
  
                         
TOTAL INVESTMENTS (99.87%)
                  
(Cost $7,019,902)
            
$
7,631,028
  
                         
NET OTHER ASSETS AND LIABILITIES (0.13%)
      
10,126
  
                         
NET ASSETS (100.00%)
                  
$
7,641,154
  
(a)
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. These securities have been deemed liquid under procedures approved by the Fund's Board of Trustees. As of July 31, 2017, the aggregate fair value of those securities was $41,601, representing 0.54% of net assets.
(b)
Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. These securities have been deemed liquid under guidelines approved by the Fund's Board of Trustees, unless otherwise noted below. As of July 31, 2017, the aggregate value of those securities was $41,601, representing 0.54% of net assets.
 
See Notes to Quarterly Schedule of Investments.

Summit Water Infrastructure Multifactor ETF
  
Notes to Quarterly Schedule of Investments
July 31, 2017
(Unaudited)
  
 
1. ORGANIZATION

The Elevation ETF Trust (the ‘‘Trust’’) is an open‐ended management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of April 30, 2017, the Trust currently consists of one portfolio. This report pertains to the Summit Water Infrastructure Multifactor ETF (the “Fund”). The Fund seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of the Summit Zacks Global Water Index (the “Underlying Index”). The Fund has elected to qualify as a non‐diversified series of the Trust under the 1940 Act.
 
The Trust was organized as a statutory trust on December 3, 2015, under the laws of the State of Delaware. The Adviser purchased 2,000 initial shares at $25.00 per share on March 4, 2016, and the Fund commenced operations on August 9, 2016.
 
The Fund’s Shares (“Shares”) are listed on the New York Stock Exchange (“NYSE”) Arca. The Fund issues and redeems Shares at net asset value (“NAV”) in blocks of 25,000 Shares, each of which is called a “Creation Unit”. Creation Units are issued and redeemed principally in‐kind for securities included in the Underlying Index. Except when aggregated in Creation Units, Shares are not redeemable securities of the Fund. Effective June 26,, 2017, the Trust’s Board of Trustees (the “Board”) approved a reduction in the number of Shares required to form a Creation Unit of the Fund from 50,000 to 25,000 Shares. The Fund is authorized to issue an unlimited number of shares with no par value.
 
2. PORTFOLIO VALUATION
 
The Fund’s NAV is determined daily, as of the close of regular trading on the NYSE, normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. The NAV is computed by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.
 
Portfolio securities listed on any exchange other than the NASDAQ Stock Market LLC (“NASDAQ”) are valued at the last sale price on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the most recent bid and ask prices on such day. Securities traded on the NASDAQ are valued at the NASDAQ Official Closing Price as determined by NASDAQ. Portfolio securities traded in the over-the-counter market, but excluding securities traded on the NASDAQ, are valued at the latest quoted sale price in such market.
 
Portfolio securities listed on any exchange other than the NASDAQ Stock Market LLC (“NASDAQ”) are valued at the last sale price on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the most recent bid and ask prices on such day. Securities traded on the NASDAQ are valued at the NASDAQ Official Closing Price as determined by NASDAQ. Portfolio securities traded in the over‐the‐counter market, but excluding securities traded on the NASDAQ, are valued at the latest quoted sale price in such market.
 
The Fund’s investments are valued at fair value or, in the absence of fair value with respect to any portfolio securities, at fair value according to procedures adopted by the Board. When market quotations are not readily available or when events occur that make established valuation methods unreliable, securities of the Fund may be valued in good faith by or under the direction of the Board. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market price is not available from a pre‐established primary pricing source or the pricing source is not willing to provide a price; a security with respect to which an event has occurred that is most likely to materially affect the value of the security after the market has closed but before the calculation of the Fund’s NAV or make it difficult or impossible to obtain a reliable market quotation; or a security whose price, as provided by the pricing service, does not reflect the security’s “fair value” due to the security being de‐listed from a national exchange or the security’s primary trading market is temporarily closed at a time when, under normal conditions, it would be open. As a general principle, the current “fair value” of a security would be the amount which the owner might reasonably expect to receive from the sale on the applicable exchange or principal market. A variety of factors may be considered in determining the fair value of such securities.
3. FAIR VALUE MEASUREMENTS
 
The Fund discloses the classification of its 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.
 
Valuation techniques used to value the Fund’s investments by major category are as follows:
 
Equity securities for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the mean of the most recent quoted bid and ask prices on such day and are generally categorized as Level 2 in the hierarchy.
 
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
 
Various inputs are used in determining the value of the Fund’s 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 a 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) for substantially the full term of the asset or liability; 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 Fund’s investments as of July 31, 2017:
Investments in Securities at Value*
  
Level 1 - Unadjusted Quoted Prices
    
Level 2 - Other Significant Observable Inputs
    
Level 3 - Significant Unobservable Inputs
    
Total
  
Common Stocks
  
$
7,609,012
    
$
–
    
$
–
    
$
7,609,012
  
Short Term Investments
    
22,016
      
–
      
–
      
22,016
  
Total
  
$
7,631,028
    
$
–
    
$
–
    
$
7,631,028
  
 
*
For a detailed sector breakdown, see the accompanying Schedule of Investments.
 
The Fund recognizes transfers between levels as of the end of the period. For the period ended July 31, 2017, the Fund did not have any transfers between Level 1 and Level 2 securities. The Fund did not have any securities which used significant unobservable inputs (Level 3) in determining fair value during the period.
 
4. TAX BASIS INFORMATION
 
As of July 31, 2017, the cost of investments for federal income tax purposes and accumulated net unrealized appreciation/(depreciation) on investments were as follows:

   
Summit Water Infrastructure Multifactor ETF
  
Gross appreciation (excess of value over tax cost)
  
$
693,175
  
Gross depreciation (excess of tax cost over value)
    
(101,472
)
Net unrealized appreciation
    
591,703
  
Cost of investments for income tax purposes
  
$
7,039,325
  
 
Item 2. Controls and Procedures.

(a)
The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective as of a date within 90 days of the filing date of this Report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940, as amended, and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b)
There was no change in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) during the second fiscal quarter of the period covered by this Report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 3. Exhibits.

Separate certifications for the Registrant's Principal Executive Officer and Principal Financial Officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached as Exhibit 99 Cert.

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.

 
ELEVATION ETF TRUST
       
 
By:
/s/ Jeremy O. May
  
   
Jeremy O. May
  
   
President
  
       
 
Date:
September 28, 2017
  

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/ Jeremy O. May
  
   
Jeremy O. May
  
   
President
  
       
 
Date:
September 28, 2017
  
       
 
By:
/s/ Kimberly R. Storms
  
   
Kimberly R. Storms
  
   
Treasurer
  
       
 
Date:
September 28, 2017