N-CSR
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED
SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-07322
The Integrity Funds
(Exact name of registrant as specified in charter)
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1 Main Street North, Minot, ND |
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58703 |
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(Address of principal offices) |
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(Zip code) |
Brent Wheeler and/or Kevin Flagstad, PO Box 500, Minot, ND 58702
(Name and address of agent for service)
Registrant’s telephone number, including area code: 701-852-5292
Date of fiscal year end: July 31st
Date of reporting period: July 31, 2018
Item 1. REPORTS TO STOCKHOLDERS.
THE INTEGRITY FUNDS
Integrity Dividend Harvest Fund
Integrity Energized Dividend Fund
Integrity Growth & Income Fund
Integrity High Income Fund
Williston Basin/Mid-North America Stock Fund
Annual Report
July 31, 2018
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Investment
Adviser |
Principal
Underwriter |
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Transfer Agent |
Custodian |
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Independent Registered
Public Accounting Firm |
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*The Funds are distributed through Integrity Funds Distributor, LLC. Member FINRA |
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INTEGRITY DIVIDEND HARVEST FUND
DEAR SHAREHOLDERS:
Enclosed is the report of the operations for the Integrity Dividend Harvest Fund (the “Dividend Harvest Fund” or “Fund”) for the seven month period ended July 31, 2018. The Fund’s portfolio and related financial statements are presented within for your review.
The first quarter of 2018 saw the S&P 500 Index (S&P) return -0.76%. After remaining near historic lows for a year, volatility (as measured by the VIX volatility index) returned in February, spiking to levels not seen since the market turmoil of late 2015. The VIX spiked from the low-teens all the way to 50 before settling around 20 for the remainder of the quarter. The market pulled back with the increased volatility, causing February to be the first down month for the S&P since October 2016. The companies comprising the S&P reported fourth quarter earnings that grew approximately 14.8% on revenue growth of 8.3%, year-over-year. Of these companies, 76% beat analyst expectations. As expected, the U.S. Federal Reserve (Fed) voted to increase the target range for the federal funds rate by 0.25% at its two-day March meeting of the Federal Open Market Committee. The Fed noted that the labor market has continued to strengthen and that economic activity has been rising at a moderate rate.
Only two sectors reported positive returns in the first quarter of 2018. Technology was the best performing sector, returning 3.54% as the sector reported a high level of earnings growth year-over-year. Consumer discretionary also had a positive quarter, returning 3.12%. Telecommunications and Consumer Staples performed worst over the period with returns of -7.49% and -7.12%, respectively. Telecommunications, a sector known for paying dividends, was likely hurt by increasing interest rates as the 10-year Treasury yield started the quarter at 2.40% and nearly touched 3%. Consumer staples contains many international companies and may have been hurt by rising fears of trade wars.
The second quarter of 2018 saw the S&P return 3.43%. Headlines focused on the increasing risk of trade wars as the U.S. announced new tariffs affecting multiple industries. The market appeared to shrug off these concerns as it ticked higher over the quarter. The companies comprising the S&P reported first quarter earnings that grew approximately 26.6% on revenue growth of 8.4%, year-over-year. Of these companies, 78% beat analyst expectations. Looking at future quarters, analysts currently project earnings growth to continue at double-digit levels through the remainder 2018. The U.S. Bureau of Labor Statistics reported that the unemployment rate fell to 3.8%, its lowest level since April 2000. As expected, the Fed voted to increase the target range for the federal funds rate by 0.25% at its June meeting. The Fed noted that economic activity has been rising at a solid rate.
Improving from the first quarter, seven of the eleven sectors reported positive returns in the second quarter of 2018. Energy was by far the best performing sector, returning 13.69% as supply disruption concerns caused the price of Brent crude oil to approach $80. Energy sector earnings grew 89% year-over-year and are expected to continue to grow at a high rate. Consumer discretionary was the second best performing sector with a return of 8.12%. The financial sector was the worst performer with a return of -3.32% as the yield curve continued to flatten.
The S&P returned 3.72% in July, its strongest monthly return since January. All sectors were positive for the month with industrials leading the way. Near the end of the month, over half of the S&P companies had reported earnings. Of those companies, 82% had reported earnings above analyst expectations.
The Fund’s total returns for Class A, C, and I shares were -1.32%*, -1.72%*, and -1.19%*, respectively, for the seven months ended July 31, 2018 while the S&P gained 6.47%. The Fund is in the Morningstar Large Value category which returned 2.76% over the same time period. The Fund underperformed the S&P, primarily driven by overweight allocations to consumer staples and telecommunications and an underweight allocation to technology sector. Aiding relative performance was an underweight allocation to financials and an overweight allocation to energy.
The Fund seeks to maximize total return by emphasizing high current income with long term appreciation as a secondary objective, consistent with preservation of capital. The Portfolio Management Team (the “Team”) considers dividend yield, dividend growth rate, earnings growth, price-to-earnings multiples, and balance sheet strength. The Team emphasizes dividend yield in selecting stocks for the Fund because the Team believes that, over time, dividend income can contribute significantly to total return and is a more consistent source of investment return than appreciation. If you would like more frequent updates, please visit the Fund’s website at integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
The Portfolio Management Team
The views expressed are those of The Portfolio Management Team of Viking Fund Management. The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance. The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.53%, 2.28%, and 1.28% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.95%, 1.70%, and 0.70% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through April 29, 2019 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.95%, 1.70%, and 0.70% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to April 29, 2019 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
INTEGRITY DIVIDEND HARVEST FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended July 31, 2018
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1 year |
3 year |
5 year |
10 year |
Since Inception* |
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Class A Without sales charge |
6.07% |
9.90% |
9.75% |
N/A |
10.84% |
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Class A With sales charge (5.00%) |
0.77% |
8.04% |
8.64% |
N/A |
9.93% |
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Class C Without CDSC |
5.33% |
N/A |
N/A |
N/A |
9.22% |
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Class C With CDSC (1.00%) |
4.35% |
N/A |
N/A |
N/A |
9.22% |
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Class I Without sales charge |
6.34% |
N/A |
N/A |
N/A |
7.32% |
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* May 1, 2012 for Class A; August 3, 2015 for Class C; August 1, 2016 for Class I |
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The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.53%, 2.28%, and 1.28% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.95%, 1.70%, and 0.70% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through April 29, 2019 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.95%, 1.70%, and 0.70% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to April 29, 2019 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares. The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends.
INTEGRITY ENERGIZED DIVIDEND FUND
DEAR SHAREHOLDERS:
Enclosed is the report of the operations for the Integrity Energized Dividend Fund (the “Energized Dividend Fund” or “Fund”) for the seven month period ended July 31, 2018. The Fund’s portfolio and related financial statements are presented within for your review.
The first quarter of 2018 saw the S&P 500 Index (S&P) return -0.76%. After remaining near historic lows for a year, volatility (as measured by the VIX volatility index) returned in February, spiking to levels not seen since the market turmoil of late 2015. The VIX spiked from the low-teens all the way to 50 before settling around 20 for the remainder of the quarter. The market pulled back with the increased volatility, causing February to be the first down month for the S&P since October 2016. The companies comprising the S&P reported fourth quarter earnings that grew approximately 14.8% on revenue growth of 8.3%, year-over-year. Of these companies, 76% beat analyst expectations. As expected, the U.S. Federal Reserve (Fed) voted to increase the target range for the federal funds rate by 0.25% at its two-day March meeting of the Federal Open Market Committee. The Fed noted that the labor market has continued to strengthen and that economic activity has been rising at a moderate rate.
Only two sectors reported positive returns in the first quarter of 2018. Technology was the best performing sector, returning 3.54% as the sector reported a high level of earnings growth year-over-year. Consumer discretionary also had a positive quarter, returning 3.12%. Telecommunications and Consumer Staples performed worst over the period with returns of -7.49% and -7.12%, respectively. Telecommunications, a sector known for paying dividends, was likely hurt by increasing interest rates as the 10-year Treasury yield started the quarter at 2.40% and nearly touched 3%. Consumer staples contains many international companies and may have been hurt by rising fears of trade wars.
The second quarter of 2018 saw the S&P return 3.43%. Headlines focused on the increasing risk of trade wars as the U.S. announced new tariffs affecting multiple industries. The market appeared to shrug off these concerns as it ticked higher over the quarter. The companies comprising the S&P reported first quarter earnings that grew approximately 26.6% on revenue growth of 8.4%, year-over-year. Of these companies, 78% beat analyst expectations. Looking at future quarters, analysts currently project earnings growth to continue at double-digit levels through the remainder 2018. The U.S. Bureau of Labor Statistics reported that the unemployment rate fell to 3.8%, its lowest level since April 2000. As expected, the Fed voted to increase the target range for the federal funds rate by 0.25% at its June meeting. The Fed noted that economic activity has been rising at a solid rate.
Improving from the first quarter, seven of the eleven sectors reported positive returns in the second quarter of 2018. Energy was by far the best performing sector, returning 13.69% as supply disruption concerns caused the price of Brent crude oil to approach $80. Energy sector earnings grew 89% year-over-year and are expected to continue to grow at a high rate. Consumer discretionary was the second best performing sector with a return of 8.12%. The financial sector was the worst performer with a return of -3.32% as the yield curve continued to flatten.
The S&P returned 3.72% in July, its strongest monthly return since January. All sectors were positive for the month with industrials leading the way. Near the end of the month, over half of the S&P companies had reported earnings. Of those companies, 82% had reported earnings above analyst expectations.
Over the first quarter, oil prices gained on strong global demand, lower OPEC production, falling Organization for Economic Cooperation and Development (OECD) inventories, and political uncertainty in the Middle East. Global oil demand remained robust, with the U.S. Energy Information Administration (EIA) forecasting 1.8 million barrels per day growth in both 2018 and 2019. OPEC’s compliance rate stood at 163% in March, over 800,000 barrels per day more than their stated production cut. U.S. crude oil production increased to 10.4 million barrels per day in March and is forecast to average 10.7 million barrels a day in 2018. This level would surpass the previous record of 9.6 million barrels per day set back in 1970. Even with rising domestic production, U.S. and global inventories continued to draw. U.S. crude oil inventories fell below the five-year average during the first quarter. OECD crude oil inventories have fallen by 267 million barrels since January 2017. At the end of March, OECD inventories stood at 2.8 billion barrels, only 30 million barrels above five-year averages. The International Energy Agency (IEA) projected that if OPEC production were to remain constant in 2018, and their outlook for non-OPEC production and oil demand remain unchanged, global inventories could draw by about 600,000 barrels of oil per day. The tailwinds for crude oil picked up steam in the 1Q2018, however, investors remained leery of energy equities, building on a disconnect of historic proportions in performance between the commodity and energy equities. From the start of 2017 to the end of the 1Q2018, crude oil prices rose 24%, while the Morningstar Equity Energy category fell by over 10%. We believe energy equities have traded based on investor sentiment and technicals over fundamentals, which have improved greatly over the past year.
Over the second quarter, oil prices strengthened further on strong global demand, Venezuela and Libya oil production declines, falling OECD inventories, and a more tapered growth outlook for U.S. shale. OPEC held a meeting in June and agreed to increase oil production. While the increased production put mild downside pressure on oil prices, this move erodes the cartel’s spare capacity. Regionally, the Permian Basin was highly topical over the 2Q2018 as production from the region inched closer to takeaway capacity. Midland Basin, the main pricing hub for Permian crude, saw differentials widen into the double digits over the quarter. Fear of further deterioration in Midland prices brought share prices of Permian operators down. Additionally, share prices of completion orientated oilfield service companies came under pressure as constrained takeaway capacity is expected to impact completion activity during the 4Q2018 through the 2Q2019. We view this issue as highly transitory and continue to seek opportunities in quality companies whose shares have overly reacted to this bottleneck. After a rough 1Q2018, energy went from trailing the S&P 500 by over 5% at the end of the first quarter to outperforming the S&P 500 by over 4% for the 1H2018.
For the 2H2018, we should see a continuation of the strong performance seen from the energy sector during the 1H2018, as tailwinds continue to build. The IEA has forecasted global oil demand for 2018 to climb by 1.4 million barrels of oil per day and 1.5 million barrels of oil per day in 2019. We believe there is upside to this number as the IEA has underestimated global demand for several consecutive years and global GDP, a statistic that has been strongly correlated to oil consumption, has been on the rise. On the supply side, growth will be driven by increasing shale production, but at a level that demand can absorb. While OPEC’s production increase may loosen global supply over the short-term, global spare capacity is expected to fall to levels not seen since the early 1980’s. We feel this will provide strong support from crude oil prices.
The Fund’s total returns for Class A, C, and I shares were 5.36%*, 4.90%*, and 5.57%*, respectively, for the seven months ended July 31, 2018 compared to returns of 7.46%, 8.77%, and 6.58% for the Morningstar Equity Energy Category, the S&P Composite 1500 Energy Index, and the S&P Composite 1500 Index, respectively. The energy sector outperformed the broader market as the price of oil rose over the period. The Fund underperformed its Morningstar category (Energy Equity), primarily driven by stock selection in midstream and underweight allocations to exploration & production and refiners. Aiding relative performance was stock selection in equipment & services and integrateds.
If you would like more frequent updates, please visit the Fund’s website at integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
The Portfolio Management Team
The views expressed are those of The Portfolio Management Team of Viking Fund Management. The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance. The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 2.48%, 3.22%, and 2.23% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.51%, 1.25%, and 0.25% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through April 29, 2019 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 1.05%, 1.80%, and 0.80% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to April 29, 2019 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
INTEGRITY ENERGIZED DIVIDEND FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended July 31, 2018
|
|
1 year |
3 year |
5 year |
10 year |
Since Inception* |
|
Class A Without sales charge |
24.11% |
N/A |
N/A |
N/A |
19.21% |
|
Class A With sales charge (5.00%) |
17.95% |
N/A |
N/A |
N/A |
16.50% |
|
Class C Without CDSC |
23.20% |
N/A |
N/A |
N/A |
18.31% |
|
Class C With CDSC (1.00%) |
22.20% |
N/A |
N/A |
N/A |
18.31% |
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Class I Without sales charge |
24.50% |
N/A |
N/A |
N/A |
22.01% |
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* May 2, 2016 for Class A and C; August 1, 2016 for Class I |
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The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 2.48%, 3.22%, and 2.23% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.51%, 1.25%, and 0.25% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through April 29, 2019 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 1.05%, 1.80%, and 0.80% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to April 29, 2019 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares. The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends.
INTEGRITY GROWTH & INCOME FUND
DEAR SHAREHOLDERS:
Enclosed is the report of the operations for the Integrity Growth & Income Fund (the “Growth & Income Fund” or “Fund”) for the seven month period ended July 31, 2018. The Fund’s portfolio and related financial statements are presented within for your review.
The first quarter of 2018 saw the S&P 500 Index (S&P) return -0.76%. After remaining near historic lows for a year, volatility (as measured by the VIX volatility index) returned in February, spiking to levels not seen since the market turmoil of late 2015. The VIX spiked from the low-teens all the way to 50 before settling around 20 for the remainder of the quarter. The market pulled back with the increased volatility, causing February to be the first down month for the S&P since October 2016. The companies comprising the S&P reported fourth quarter earnings that grew approximately 14.8% on revenue growth of 8.3%, year-over-year. Of these companies, 76% beat analyst expectations. As expected, the U.S. Federal Reserve (Fed) voted to increase the target range for the federal funds rate by 0.25% at its two-day March meeting of the Federal Open Market Committee. The Fed noted that the labor market has continued to strengthen and that economic activity has been rising at a moderate rate.
Only two sectors reported positive returns in the first quarter of 2018. Technology was the best performing sector, returning 3.54% as the sector reported a high level of earnings growth year-over-year. Consumer discretionary also had a positive quarter, returning 3.12%. Telecommunications and Consumer Staples performed worst over the period with returns of -7.49% and -7.12%, respectively. Telecommunications, a sector known for paying dividends, was likely hurt by increasing interest rates as the 10-year Treasury yield started the quarter at 2.40% and nearly touched 3%. Consumer staples contains many international companies and may have been hurt by rising fears of trade wars.
The second quarter of 2018 saw the S&P return 3.43%. Headlines focused on the increasing risk of trade wars as the U.S. announced new tariffs affecting multiple industries. The market appeared to shrug off these concerns as it ticked higher over the quarter. The companies comprising the S&P reported first quarter earnings that grew approximately 26.6% on revenue growth of 8.4%, year-over-year. Of these companies, 78% beat analyst expectations. Looking at future quarters, analysts currently project earnings growth to continue at double-digit levels through the remainder 2018. The U.S. Bureau of Labor Statistics reported that the unemployment rate fell to 3.8%, its lowest level since April 2000. As expected, the Fed voted to increase the target range for the federal funds rate by 0.25% at its June meeting. The Fed noted that economic activity has been rising at a solid rate.
Improving from the first quarter, seven of the eleven sectors reported positive returns in the second quarter of 2018. Energy was by far the best performing sector, returning 13.69% as supply disruption concerns caused the price of Brent crude oil to approach $80. Energy sector earnings grew 89% year-over-year and are expected to continue to grow at a high rate. Consumer discretionary was the second best performing sector with a return of 8.12%. The financial sector was the worst performer with a return of -3.32% as the yield curve continued to flatten.
The S&P returned 3.72% in July, its strongest monthly return since January. All sectors were positive for the month with industrials leading the way. Near the end of the month, over half of the S&P companies had reported earnings. Of those companies, 82% had reported earnings above analyst expectations.
The Fund’s total returns for Class A, C, and I shares were 5.81%*, 5.53%*, and 5.96%*, respectively, for the seven months ended July 31, 2018 while the S&P gained 6.47%. The Fund is in the Morningstar Large Blend category which returned 5.22% over the same time period. The Fund underperformed the S&P, primarily driven by stock selection in consumer discretionary and industrials and an overweight allocation to telecommunications. Aiding relative performance was stock selection in technology and financials.
The Fund is managed using a blended growth and income investment strategy. We seek to invest primarily in domestic common stocks, balancing investments between growth & dividend paying stocks, depending on where we see the best value. We also try to emphasize companies we believe offer both attractive investment opportunities and demonstrate a positive awareness of their impact on the society in which they operate.
If you would like more frequent updates, please visit the Fund’s website at integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
The Portfolio Management Team
The views expressed are those of The Portfolio Management Team of Viking Fund Management. The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance. The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.93%, 1.74%, and 1.68% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 1.25%, 1.70%, and 1.00% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through April 29, 2019 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 1.25%, 2.00%, and 1.00% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to April 29, 2019 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
INTEGRITY GROWTH & INCOME FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended July 31, 2018
|
|
1 year |
3 year |
5 year |
10 year |
Since Inception* |
|
Class A Without sales charge |
15.94% |
8.52% |
9.68% |
8.11% |
8.73% |
|
Class A With sales charge (5.00%) |
10.14% |
6.68% |
8.56% |
7.56% |
8.49% |
|
Class C Without CDSC |
15.27% |
N/A |
N/A |
N/A |
7.98% |
|
Class C With CDSC (1.00%) |
14.27% |
N/A |
N/A |
N/A |
7.98% |
|
Class I Without sales charge |
16.20% |
N/A |
N/A |
N/A |
13.95% |
|
* January 3, 1995 for Class A; August 3, 2015 for Class C; August 1, 2016 for Class I |
|||||
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.93%, 1.74%, and 1.68% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 1.25%, 1.70%, and 1.00% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through April 29, 2019 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 1.25%, 2.00%, and 1.00% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to April 29, 2019 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares. The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends. The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser.
INTEGRITY HIGH INCOME FUND
DEAR SHAREHOLDERS:
Enclosed is the report of the operations for the Integrity High Income Fund (the “High Income Fund” or “Fund”) for the seven month period ended July 31, 2018. The Fund’s portfolio and related financial statements are presented within for your review.
Market Environment
Despite solid fundamentals and earnings in the high-yield market, increasing rates, inflation and trade concerns drove increased volatility in bond prices. Global economic uncertainty rose on weaker growth in Europe and oil supply questions also contributed to the volatility. For the year-to-date period ending July 31, 2018, the high-yield market was up 1.20% (as measured by the ICE BofAML US High Yield Constrained Index). Performance was led by less rate-sensitive, lower-quality credits, as CCCs returned 4.55% versus BBs at -0.70%. Year to date, yields widened 52 basis points (bps) to 6.36% while spreads tightened 16 bps to close at 357 bps as of July 31. Leading contributors to year-to-date performance in the high-yield market were telecommunications, health care and transportation, which were offset by the top detractors, automotive, banking and consumer goods.
Retail fund flows for the year-to-date period have been negative at -$24 billion, dramatically higher than the -$10.5 billion for the same period last year. High-yield new issuance in 2018 was down 30% compared to the same period one year ago though refinancing activity continued to represent nearly two-thirds of total issuance this year. Default activity has lightened and the current trailing 12-month default rate of 2.02% is higher by 72 bps year to date and 81 bps for the trailing 12-month period.
With a 1.20% return for the last seven months, high yield has outperformed all other major fixed income asset classes, followed by five-year Treasuries (GA05) at -1.38%, emerging markets (EMCB) at -1.50%, U.S. Aggregate (D0A0) at -1.61% and high-grade credit (C0A0) at -2.40%.
Portfolio Performance and Positioning
For the year-to-date period ending July 31, the Integrity High Income Fund returned 1.21%* (A Class Shares, net of fees), 0.78%* (C Class Shares, net of fees) and 1.36%* (I Class Shares, net of fees) compared to its benchmark, the Bloomberg Barclays U.S. High Yield Index, which returned 1.25%, and the Morningstar High Yield category’s period return of 0.83%. On a gross-of-fee basis, the Fund’s A Class Shares outperformed the benchmark for the seven-month period due to security selection in the wireless and independent energy sectors in addition to the positive contribution resulting from the portfolio’s underweight to banking. Specifically, weightings in Valeant Pharmaceuticals International, Clear Channel Worldwide, Softbank Group Corporation, Windstream Holdings and Tenet Healthcare Corporation enhanced relative performance results in the period. Alternatively, contributions from security selection in the cable satellite and consumer products sectors coupled with an underweight to oil field services hindered relative performance for the trailing seven months. The largest detractors resulted from relative weightings in DISH Network Corporation, Halcon Resources Corporation, Frontier Communications Corporation, Hertz Global Holdings and High Ridge Brands.
Compared to the benchmark at July 31, the Fund was overweight in cable satellite, consumer products and technology due to our view of the relative value opportunities within those sectors. The Fund remained underweight in metals and mining, finance companies and oil field services because we have not found these sectors attractive due to challenging fundamental outlooks or rich valuations. As of July 31, the Fund’s yield, spread and duration were all lower than those of the benchmark.
Market Outlook
Global growth remains supportive of fundamentals, though a weaker-growth trend is developing in Europe. We expect a continuation of improved earnings growth and solid cash flows. Corporate balance sheets remain sound as improved cash flow and modest spending plans keep leverage stable. We also expect increased merger-and-acquisition activity, which should be a net positive for high-yield issuers. Technicals are supportive as low net issuance has more than offset muted demand. Volatility has increased on fears of a trade war and global economic uncertainty, and may continue sporadically. We believe broader-market high-yield spreads are attractive relative to current and expected defaults. Our fundamental research, bottom-up security selection style should allow us to continue to capitalize on market opportunities.
If you would like more frequent updates, please visit the Fund’s website at integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
|
Robert L. Cook |
Thomas G. Hauser |
The views expressed are those of Robert L. Cook, Senior Portfolio Manager and Managing Director, and Thomas G. Hauser, Vice President, J.P. Morgan Investment Management, Inc. (“JPMIM”), sub-adviser to the Fund. The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance. The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.73%, 2.48%, and 1.48% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.89%, 1.64%, and 0.64% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through April 30, 2019 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.89%, 1.64%, and 0.64% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to April 30, 2019 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
INTEGRITY HIGH INCOME FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended July 31, 2018
|
|
1 year |
3 year |
5 year |
10 year |
Since Inception* |
|
Class A Without sales charge |
2.49% |
5.20% |
4.59% |
6.91% |
5.30% |
|
Class A With sales charge (4.25%) |
-1.88% |
3.69% |
3.69% |
6.45% |
4.98% |
|
Class C Without CDSC |
1.74% |
4.41% |
3.81% |
6.13% |
4.49% |
|
Class C With CDSC (1.00%) |
0.76% |
4.41% |
3.81% |
6.13% |
4.49% |
|
Class I Without sales charge |
2.75% |
N/A |
N/A |
N/A |
6.26% |
|
* April 30, 2004 for Class A and C; August 1, 2016 for Class I |
|||||
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.73%, 2.48%, and 1.48% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.89%, 1.64%, and 0.64% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through April 30, 2019 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.89%, 1.64%, and 0.64% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to April 30, 2019 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares. The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends. The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser.
WILLISTON BASIN/MID-NORTH AMERICA STOCK FUND
DEAR SHAREHOLDERS:
Enclosed is the report of the operations for the Williston Basin/Mid-North America Stock Fund (the “WB/MNA Stock Fund” or “Fund”) for the seven month period ended July 31, 2018. The Fund’s portfolio and related financial statements are presented within for your review.
The first quarter of 2018 saw the S&P 500 Index (S&P) return -0.76%. After remaining near historic lows for a year, volatility (as measured by the VIX volatility index) returned in February, spiking to levels not seen since the market turmoil of late 2015. The VIX spiked from the low-teens all the way to 50 before settling around 20 for the remainder of the quarter. The market pulled back with the increased volatility, causing February to be the first down month for the S&P since October 2016. The companies comprising the S&P reported fourth quarter earnings that grew approximately 14.8% on revenue growth of 8.3%, year-over-year. Of these companies, 76% beat analyst expectations. As expected, the U.S. Federal Reserve (Fed) voted to increase the target range for the federal funds rate by 0.25% at its two-day March meeting of the Federal Open Market Committee. The Fed noted that the labor market has continued to strengthen and that economic activity has been rising at a moderate rate.
Only two sectors reported positive returns in the first quarter of 2018. Technology was the best performing sector, returning 3.54% as the sector reported a high level of earnings growth year-over-year. Consumer discretionary also had a positive quarter, returning 3.12%. Telecommunications and Consumer Staples performed the worst over the period with returns of -7.49% and -7.12%, respectively. Telecommunications, a sector known for paying dividends, was likely hurt by increasing interest rates as the 10-year Treasury yield started the quarter at 2.40% and nearly touched 3%. Consumer staples contains many international companies and may have been hurt by rising fears of trade wars.
The second quarter of 2018 saw the S&P return 3.43%. Headlines focused on the increasing risk of trade wars as the U.S. announced new tariffs affecting multiple industries. The market appeared to shrug off these concerns as it ticked higher over the quarter. The companies comprising the S&P reported first quarter earnings that grew approximately 26.6% on revenue growth of 8.4%, year-over-year. Of these companies, 78% beat analyst expectations. Looking at future quarters, analysts currently project earnings growth to continue at double-digit levels through the remainder 2018. The U.S. Bureau of Labor Statistics reported that the unemployment rate fell to 3.8%, its lowest level since April 2000. As expected, the Fed voted to increase the target range for the federal funds rate by 0.25% at its June meeting. The Fed noted that economic activity has been rising at a solid rate.
Improving from the first quarter, seven of the eleven sectors reported positive returns in the second quarter of 2018. Energy was by far the best performing sector, returning 13.69% as supply disruption concerns caused the price of Brent crude oil to approach $80. Energy sector earnings grew 89% year-over-year and are expected to continue to grow at a high rate. Consumer discretionary was the second best performing sector with a return of 8.12%. The financial sector was the worst performer with a return of -3.32% as the yield curve continued to flatten.
The S&P returned 3.72% in July, its strongest monthly return since January. All sectors were positive for the month with industrials leading the way. Near the end of the month, over half of the S&P companies had reported earnings. Of those companies, 82% had reported earnings above analyst expectations.
Over the first quarter, oil prices gained on strong global demand, lower OPEC production, falling Organization for Economic Cooperation and Development (OECD) inventories, and political uncertainty in the Middle East. Global oil demand remained robust, with the U.S. Energy Information Administration (EIA) forecasting 1.8 million barrels per day growth in both 2018 and 2019. OPEC’s compliance rate stood at 163% in March, over 800,000 barrels per day more than their stated production cut. U.S. crude oil production increased to 10.4 million barrels per day in March and is forecasted to average 10.7 million barrels a day in 2018. This level would surpass the previous record of 9.6 million barrels per day set back in 1970. Even with rising domestic production, U.S. and global inventories continued to draw. U.S. crude oil inventories fell below the five-year average during the first quarter. OECD crude oil inventories have fallen by 267 million barrels since January 2017. At the end of March, OECD inventories stood at 2.8 billion barrels, only 30 million barrels above five-year averages. The International Energy Agency (IEA) projected that if OPEC production were to remain constant in 2018, and their outlook for non-OPEC production and oil demand remain unchanged, global inventories could draw by about 600,000 barrels of oil per day. The tailwinds for crude oil picked up steam in the 1Q2018, however, investors remained leery of energy equities, building on a disconnect of historic proportions in performance between the commodity and energy equities. From the start of 2017 to the end of the 1Q2018, crude oil prices rose 24%, while the Morningstar Equity Energy category fell by over 10%. The Fund returned -8.94% versus the Morningstar Equity Energy category’s return of -6.74% over the first quarter. We believe energy equities have traded based on investor sentiment and technicals over fundamentals, which have improved greatly over the past year.
Over the second quarter, oil prices strengthened further on strong global demand, Venezuela and Libya oil production declines, falling OECD inventories, and a more tapered growth outlook for U.S. shale. OPEC held a meeting in June and agreed to increase oil production. While the increased production put mild downside pressure on oil prices, this move erodes the cartel’s spare capacity. Regionally, the Permian Basin was highly topical over the 2Q2018 as production from the region inched closer to takeaway capacity. Midland Basin, the main pricing hub for Permian crude, saw differentials widen into the double digits over the quarter. Fear of further deterioration in Midland prices brought share prices of Permian operators down. Additionally, share prices of completion orientated oilfield service companies came under pressure as constrained takeaway capacity is expected to impact completion activity during the 4Q2018 through the 2Q2019. We view this issue as highly transitory and continue to seek opportunities in quality companies whose shares have overly reacted to this bottleneck. After a rough 1Q2018, energy went from trailing the S&P 500 by over 5% at the end of the first quarter to outperforming the S&P 500 by over 4% for the 1H2018. The Fund returned 9.22% versus the Morningstar Equity Energy category’s return of 13.06% over the second quarter.
In the month of July, crude prices backed off of the year-to-date high of 72.46 to close the quarter at 68.76. The Fund returned 2.75% in July, 1.25% ahead of the Morningstar Equity Energy category. Aiding relative performance was an underweight allocation to integrated oil companies and selection in oilfield service.
For the 2H2018, we should see a continuation of the strong performance seen from the energy sector during the 1H2018, as tailwinds continue to build. The IEA has forecasted global oil demand for 2018 to climb by 1.4 million barrels of oil per day and 1.5 million barrels of oil per day in 2019. We believe there is upside to this number as the IEA has underestimated global demand for several consecutive years and global GDP, a statistic that has been strongly correlated to oil consumption, has been on the rise. On the supply side, growth will be driven by increasing shale production, but at a level that demand can absorb. While OPEC’s production increase may loosen global supply over the short-term, global spare capacity is expected to fall to levels not seen since the early 1980’s. We feel this will provide strong support from crude oil prices.
The Fund’s total returns for Class A, C, and I shares were 2.19%*, 1.84%*, and 2.38%*, respectively, for the seven months ended July 31, 2018, compared to returns of 7.46%, 8.77%, and 6.58% for the Morningstar Equity Energy Category, the S&P Composite 1500 Energy Index, and the S&P Composite 1500 Index, respectively. Detracting from the Fund’s performance relative to its Morningstar category was selection in oilfield service and exploration & production. Aiding relative performance was an underweight allocation to integrated oil companies and refinery selection. If you would like more frequent updates, please visit the Fund’s website at integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
The Portfolio Management Team
The views expressed are those of The Portfolio Management Team of Viking Fund Management, LLC (“Viking Fund Management”, “VFM”, or the “Adviser”). The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance. The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.49%, 1.99%, and 0.99% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 1.49%, 1.99%, and 0.99% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through April 29, 2019 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 1.50%, 2.00%, and 1.00% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to April 29, 2019 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
WILLISTON BASIN/MID-NORTH AMERICA STOCK FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended July 31, 2018
|
|
1 year |
3 year |
5 year |
10 year |
Since Inception* |
|
Class A Without sales charge |
14.19% |
2.06% |
-0.19% |
5.49% |
6.53% |
|
Class A With sales charge (5.00%) |
8.44% |
0.33% |
-1.21% |
4.95% |
6.25% |
|
Class C Without CDSC |
13.55% |
1.59% |
N/A |
N/A |
-5.74% |
|
Class C With CDSC (1.00%) |
12.55% |
1.59% |
N/A |
N/A |
-5.74% |
|
Class I Without sales charge |
14.66% |
N/A |
N/A |
N/A |
9.42% |
|
* April 5, 1999 for Class A; May 1, 2014 for Class C; August 1, 2016 for Class I |
|||||
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.49%, 1.99%, and 0.99% for Class A, C, and I, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 1.49%, 1.99%, and 0.99% for Class A, C, and I, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through April 29, 2019 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 1.50%, 2.00%, and 1.00% for Class A, C, and I, respectively. This expense limitation agreement may only be terminated or modified prior to April 29, 2019 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares. The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends. The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser. The Fund’s performance prior to November 10, 2008 was achieved under the previous investment strategy, which may have produced different results than the current investment strategy.
INTEGRITY DIVIDEND HARVEST FUND
PORTFOLIO MARKET SECTORS July 31, 2018
|
Consumer Staples |
22.3% |
|
Utilities |
15.9% |
|
Energy |
14.1% |
|
Telecommunication Services |
13.1% |
|
Health Care |
9.0% |
|
Financials |
7.5% |
|
Industrials |
7.0% |
|
Consumer Discretionary |
5.8% |
|
Information Technology |
3.3% |
|
Cash Equivalents and Other |
1.0% |
|
Materials |
1.0% |
|
100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS July 31, 2018
|
|
Fair |
|||
|
Shares |
Value |
|||
|
COMMON STOCKS (99.1%) |
||||
|
|
||||
|
Consumer Discretionary (5.8%) |
||||
|
Genuine Parts Co |
$ |
20,000 |
$ |
1,946,200 |
|
McDonald's Corp |
29,000 |
4,568,660 |
||
|
Target Corp |
13,000 |
1,048,840 |
||
|
|
|
7,563,700 |
||
|
Consumer Staples (22.3%) |
||||
|
Altria Group Inc |
103,000 |
6,044,040 |
||
|
Coca Cola Co/The |
130,000 |
6,061,900 |
||
|
General Mills Inc |
15,000 |
690,900 |
||
|
Kimberly Clark Corp |
48,000 |
5,465,280 |
||
|
PepsiCo Inc |
24,000 |
2,760,000 |
||
|
Philip Morris International Inc |
29,000 |
2,502,700 |
||
|
Procter & Gamble Co/The |
71,000 |
5,742,480 |
||
|
|
|
29,267,300 |
||
|
Energy (14.1%) |
||||
|
BP PLC ADR |
22,000 |
991,980 |
||
|
Royal Dutch Shell PLC ADR |
29,000 |
2,060,160 |
||
|
Chevron Corp |
21,000 |
2,651,670 |
||
|
Enbridge Inc |
50,000 |
1,771,500 |
||
|
Exxon Mobil Corp |
74,000 |
6,031,740 |
||
|
Occidental Petroleum Corp |
28,000 |
2,350,040 |
||
|
Sempra Energy |
12,000 |
1,387,080 |
||
|
TransCanada Corp |
27,000 |
1,213,650 |
||
|
|
|
18,457,820 |
||
|
Financials (7.5%) |
||||
|
BB&T Corp |
16,000 |
812,960 |
||
|
BlackRock Inc |
1,400 |
703,864 |
||
|
CME Group Inc |
12,000 |
1,909,440 |
||
|
Cincinnati Financial Corp |
11,000 |
831,930 |
||
|
Old Republic International Corp |
40,000 |
852,400 |
||
|
People's United Financial Inc |
|
80,000 |
1,458,400 |
|
|
Prudential Financial Inc |
23,000 |
2,320,930 |
||
|
Wells Fargo & Co |
17,000 |
973,930 |
||
|
|
|
9,863,854 |
||
|
Health Care (9.0%) |
||||
|
Johnson & Johnson |
40,500 |
5,367,060 |
||
|
Merck & Co Inc |
54,000 |
3,556,980 |
||
|
Pfizer Inc |
72,000 |
2,874,960 |
||
|
|
11,799,000 |
|||
|
Industrials (7.0%) |
||||
|
Emerson Electric Co |
30,000 |
2,168,400 |
||
|
Lockheed Martin Corp |
15,000 |
4,891,500 |
||
|
3M Co |
10,000 |
2,123,200 |
||
|
|
9,183,100 |
|||
|
Information Technology (3.3%) |
||||
|
Broadcom Inc |
4,500 |
997,965 |
||
|
International Business Machines Corp |
23,000 |
3,333,390 |
||
|
|
4,331,355 |
|||
|
Materials (1.0%) |
||||
|
Air Products & Chemicals Inc |
8,000 |
|
1,313,360 |
|
|
Telecommunication Services (13.1%) |
||||
|
Vodafone Group PLC |
68,000 |
1,669,400 |
||
|
AT&T Inc |
223,000 |
7,129,310 |
||
|
BCE Inc |
43,000 |
1,824,490 |
||
|
Verizon Communications Inc |
127,000 |
6,558,280 |
||
|
|
17,181,480 |
|||
|
Utilities (15.9%) |
||||
|
Consolidated Edison Inc |
24,000 |
1,894,320 |
||
|
Dominion Resources Inc/VA |
72,000 |
5,163,120 |
||
|
Duke Energy Corp |
56,000 |
4,570,720 |
||
|
NextEra Energy Inc |
15,000 |
2,513,100 |
||
|
Southern Co/The |
90,000 |
4,374,000 |
||
|
WEC Energy Group Inc |
34,000 |
2,256,580 |
||
|
|
20,771,840 |
|||
|
|
||||
|
TOTAL COMMON STOCKS (COST: $123,913,194) |
$ |
129,732,809 |
||
|
|
||||
|
OTHER ASSETS LESS LIABILITES (0.9%) |
$ |
1,185,608 |
||
|
|
||||
|
NET ASSETS (100.0%) |
$ |
130,918,417 |
||
|
|
||||
|
ADR - American Depositary Receipt |
||||
|
|
||||
|
|
||||
|
The accompanying notes are an integral part of these financial statements. |
||||
INTEGRITY ENERGIZED DIVIDEND FUND
PORTFOLIO MARKET SECTORS July 31, 2018
|
Energy |
82.6% |
|
Utilities |
7.3% |
|
Materials |
3.3% |
|
Industrials |
3.1% |
|
Financials |
2.6% |
|
Cash Equivalents and Other |
1.1% |
|
100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS July 31, 2018
|
Fair |
||||
|
Shares |
Value |
|||
|
COMMON STOCKS (98.9%) |
||||
|
|
||||
|
Energy (82.6%) |
||||
|
BP PLC ADR |
$ |
13,000 |
$ |
586,170 |
|
Royal Dutch Shell PLC ADR |
11,400 |
809,856 |
||
|
TOTAL SA ADR |
4,000 |
261,000 |
||
|
AltaGas Ltd |
12,300 |
250,283 |
||
|
Archrock Inc |
18,000 |
245,700 |
||
|
Chevron Corp |
1,650 |
208,346 |
||
|
Enbridge Inc |
9,000 |
318,870 |
||
|
Exxon Mobil Corp |
1,500 |
122,265 |
||
|
Gibson Energy Inc |
20,000 |
280,124 |
||
|
Helmerich & Payne Inc |
3,000 |
184,050 |
||
|
Kinder Morgan Inc/DE |
24,000 |
426,720 |
||
|
Occidental Petroleum Corp |
3,600 |
302,148 |
||
|
Pembina Pipeline Corp |
7,000 |
251,090 |
||
|
Schlumberger Ltd |
1,700 |
114,784 |
||
|
SemGroup Corp |
23,000 |
578,450 |
||
|
TransCanada Corp |
6,000 |
269,700 |
||
|
Valero Energy Corp |
1,000 |
118,350 |
||
|
Williams Cos Inc/The |
24,000 |
714,000 |
||
|
|
6,041,905 |
|||
|
Financials (2.6%) |
||||
|
CME Group Inc |
1,200 |
|
190,944 |
|
|
|
||||
|
Industrials (3.1%) |
||||
|
Covanta Holding Corp |
12,500 |
|
225,000 |
|
|
|
||||
|
Materials (3.3%) |
||||
|
Compass Minerals International Inc |
2,400 |
162,840 |
||
|
LyondellBasell Industries NV |
700 |
77,553 |
||
|
|
240,393 |
|||
|
Utilities (7.3%) |
||||
|
Entergy Corp |
1,800 |
146,304 |
||
|
OGE Energy Corp |
3,000 |
108,720 |
||
|
Southern Co/The |
5,800 |
281,880 |
||
|
|
536,904 |
|||
|
|
||||
|
TOTAL COMMON STOCKS (COST: $6,733,297) |
$ |
7,235,146 |
||
|
|
||||
|
OTHER ASSETS LESS LIABILITIES (1.1%) |
$ |
81,553 |
||
|
|
||||
|
NET ASSETS (100.0%) |
$ |
7,316,699 |
||
|
|
||||
|
ADR - American Depositary Receipt |
||||
|
|
||||
|
|
||||
|
The accompanying notes are an integral part of these financial statements. |
||||
INTEGRITY GROWTH & INCOME FUND
PORTFOLIO MARKET SECTORS July 31, 2018
|
Information Technology |
21.9% |
|
Health Care |
16.3% |
|
Financials |
16.2% |
|
Industrials |
12.8% |
|
Consumer Discretionary |
12.1% |
|
Consumer Staples |
7.5% |
|
Utilities |
4.5% |
|
Telecommunication Services |
3.8% |
|
Materials |
3.1% |
|
Cash Equivalents and Other |
1.8% |
|
100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS July 31, 2018
|
Fair |
||||
|
Shares |
Value |
|||
|
COMMON STOCKS (98.2%) |
||||
|
|
||||
|
Consumer Discretionary (12.1%) |
||||
|
Best Buy Co Inc |
$ |
8,000 |
$ |
600,240 |
|
Walt Disney Co/The |
4,000 |
454,240 |
||
|
Home Depot Inc/The |
3,500 |
691,320 |
||
|
Lowe's Cos Inc |
7,200 |
715,248 |
||
|
Starbucks Corp |
27,000 |
1,414,530 |
||
|
Target Corp |
6,000 |
484,080 |
||
|
|
4,359,658 |
|||
|
Consumer Staples (7.5%) |
||||
|
Campbell Soup Co |
21,000 |
858,900 |
||
|
Kimberly Clark Corp |
6,500 |
740,090 |
||
|
PepsiCo Inc |
9,500 |
1,092,500 |
||
|
|
2,691,490 |
|||
|
Financials (16.2%) |
||||
|
Bank of America Corp |
20,000 |
617,600 |
||
|
BlackRock Inc |
2,800 |
1,407,728 |
||
|
JPMorgan Chase & Co |
15,000 |
1,724,250 |
||
|
PNC Financial Services Group Inc/The |
3,000 |
434,490 |
||
|
S&P Global Inc |
3,000 |
601,320 |
||
|
US Bancorp |
19,000 |
1,007,190 |
||
|
|
5,792,578 |
|||
|
Health Care (16.3%) |
||||
|
Becton Dickinson and Co |
3,000 |
751,110 |
||
|
*Celgene Corp |
8,000 |
720,720 |
||
|
Johnson & Johnson |
5,000 |
662,600 |
||
|
Pfizer Inc |
33,000 |
$ |
1,317,690 |
|
|
Thermo Fisher Scientific Inc |
8,000 |
1,876,240 |
||
|
UnitedHealth Group Inc |
2,000 |
506,440 |
||
|
|
5,834,800 |
|||
|
Industrials (12.8%) |
||||
|
Caterpillar Inc |
4,500 |
647,100 |
||
|
Covanta Holding Corp |
47,000 |
846,000 |
||
|
Deere & Co |
3,800 |
550,202 |
||
|
FedEx Corp |
1,500 |
368,805 |
||
|
3M Co |
4,500 |
955,440 |
||
|
Waste Management Inc |
7,000 |
630,000 |
||
|
Ingersoll Rand PLC |
6,000 |
591,060 |
||
|
|
4,588,607 |
|||
|
Information Technology (21.9%) |
||||
|
*Advanced Micro Devices Inc |
50,000 |
916,500 |
||
|
*Alphabet Inc |
1,000 |
1,227,220 |
||
|
Apple Inc |
2,000 |
380,580 |
||
|
HP Inc |
28,000 |
646,240 |
||
|
Intel Corp |
24,000 |
1,154,400 |
||
|
International Business Machines Corp |
4,000 |
579,720 |
||
|
NVIDIA Corp |
2,100 |
514,206 |
||
|
QUALCOMM Inc |
17,000 |
1,089,530 |
||
|
Visa Inc |
10,000 |
1,367,400 |
||
|
|
7,875,796 |
|||
|
Materials (3.1%) |
||||
|
Air Products & Chemicals Inc |
3,500 |
574,595 |
||
|
Praxair Inc |
3,200 |
536,000 |
||
|
|
1,110,595 |
|||
|
Telecommunication Services (3.8%) |
||||
|
AT&T Inc |
26,000 |
831,220 |
||
|
Verizon Communications Inc |
10,000 |
516,400 |
||
|
|
1,347,620 |
|||
|
Utilities (4.5%) |
||||
|
ALLETE Inc |
9,500 |
736,535 |
||
|
Exelon Corp |
21,000 |
892,500 |
||
|
|
1,629,035 |
|||
|
|
||||
|
TOTAL COMMON STOCKS (COST: $25,837,045) |
$ |
35,230,179 |
||
|
|
||||
|
OTHER ASSETS AND LIABILITES (1.8%) |
$ |
653,531 |
||
|
|
||||
|
NET ASSETS (100.0%) |
$ |
35,883,710 |
||
|
|
||||
|
* Non-income producing |
||||
|
|
||||
|
|
||||
|
The accompanying notes are an integral part of these financial statements. |
||||
INTEGRITY HIGH INCOME FUND
PORTFOLIO MARKET SECTORS July 31, 2018
|
Consumer Discretionary |
27.4% |
|
Energy |
11.6% |
|
Health Care |
10.7% |
|
Telecommunication Services |
10.3% |
|
Industrials |
9.3% |
|
Cash Equivalents and Other |
8.5% |
|
Information Technology |
7.7% |
|
Materials |
5.2% |
|
Financials |
3.7% |
|
Consumer Staples |
3.1% |
|
Real Estate |
1.5% |
|
Utilities |
1.0% |
|
100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS July 31, 2018
|
Principal |
Fair |
|||
|
Amount |
Value |
|||
|
CORPORATE BONDS (89.0%) |
||||
|
|
||||
|
Consumer Discretionary (25.9%) |
||||
|
Aramark Services Inc 5.000% 02/01/2028 |
$ |
75,000 |
$ |
72,353 |
|
Alpine Finance Merger Sub LLC - 144A 6.875% 08/01/2025 |
25,000 |
25,313 |
||
|
Altice Luxembourg SA - 144A 7.750% 05/15/2022 |
200,000 |
199,000 |
||
|
AMC Entertainment Holdings Inc 5.875% 11/15/2026 |
15,000 |
14,625 |
||
|
*AMC Entertainment Inc 5.750% 06/15/2025 |
55,000 |
54,244 |
||
|
AMC Networks Inc 5.000% 04/01/2024 |
85,000 |
83,831 |
||
|
American Axle & Manufacturing Inc 6.250% 03/15/2026 |
90,000 |
86,400 |
||
|
American Axle & Manufacturing Inc 6.250% 04/01/2025 |
50,000 |
48,625 |
||
|
American Axle & Manufacturing Inc 6.500% 04/01/2027 |
45,000 |
43,763 |
||
|
American Axle & Manufacturing Inc 6.625% 10/15/2022 |
66,000 |
67,650 |
||
|
Arch Merger Sub Inc - 144A 8.500% 09/15/2025 |
125,000 |
117,500 |
||
|
Boyd Gaming Corp 6.875% 05/15/2023 |
30,000 |
31,547 |
||
|
Boyd Gaming Corp - 144A 6.000% 08/15/2026 |
35,000 |
35,175 |
||
|
Boyne USA Inc - 144A 7.250% 05/01/2025 |
15,000 |
15,675 |
||
|
CBS Radio Inc - 144A 7.250% 11/01/2024 |
25,000 |
23,488 |
||
|
CCO Holdings LLC / CCO Holdings Capital Corp 5.125% 05/01/2027 |
160,000 |
152,750 |
||
|
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 5.000% 02/01/2028 |
100,000 |
93,938 |
||
|
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 5.375% 05/01/2025 |
40,000 |
39,300 |
||
|
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 5.500% 05/01/2026 |
80,000 |
78,600 |
||
|
CCO Holdings LLC / CCO Holdings Capital Corp - 144A 5.750% 02/15/2026 |
165,000 |
163,969 |
||
|
*CCO Holdings LLC / CCO Holdings Capital Corp - 144A 5.875% 04/01/2024 |
300,000 |
305,250 |
||
|
Cinemark USA Inc 4.875% 06/01/2023 |
85,000 |
83,751 |
||
|
(5)Claire's Stores Inc - 144A 9.000% 03/15/2019 |
100,000 |
63,500 |
||
|
Clear Channel Worldwide Holdings Inc 6.500% 11/15/2022 |
95,000 |
96,680 |
||
|
*Clear Channel Worldwide Holdings Inc 6.500% 11/15/2022 |
380,000 |
388,550 |
||
|
Clear Channel Worldwide Holdings Inc 7.625% 03/15/2020 |
50,000 |
49,750 |
||
|
Clear Channel Worldwide Holdings Inc 7.625% 03/15/2020 |
165,000 |
165,363 |
||
|
Constellation Merger Sub Inc - 144A 8.500% 09/15/2025 |
55,000 |
51,975 |
||
|
Cooper- 144A Standard Automotive Inc - 5.625% 11/15/2026 |
60,000 |
58,950 |
||
|
Dana Financing Luxembourg Sarl - 144A 6.500% 06/01/2026 |
10,000 |
10,125 |
||
|
*Dana Inc 6.000% 09/15/2023 |
150,000 |
154,500 |
||
|
Delphi Jersey Holdings PLC - 144A 5.000% 10/01/2025 |
80,000 |
75,441 |
||
|
DISH DBS Corp 5.000% 03/15/2023 |
235,000 |
203,275 |
||
|
*DISH DBS Corp 5.875% 07/15/2022 |
140,000 |
130,900 |
||
|
DISH DBS Corp 5.875% 11/15/2024 |
325,000 |
269,750 |
||
|
DISH DBS Corp 7.750% 07/01/2026 |
60,000 |
52,425 |
||
|
DISH Network Corp 3.375% 08/15/2026 |
50,000 |
45,423 |
||
|
Energizer Gamma Acquisition Inc - 144A 6.375% 07/15/2026 |
25,000 |
25,688 |
||
|
Gates Global LLC / Gates Global Co - 144A 6.000% 07/15/2022 |
43,000 |
43,269 |
||
|
General Motors Co 4.875% 10/02/2023 |
135,000 |
138,252 |
||
|
GLP Capital LP / GLP Financing II Inc 5.250% 06/01/2025 |
50,000 |
50,920 |
||
|
GLP Capital LP / GLP Financing II Inc 5.750% 06/01/2028 |
50,000 |
50,735 |
||
|
Goodyear Tire & Rubber Co/The 5.000% 05/31/2026 |
15,000 |
13,988 |
||
|
Goodyear Tire & Rubber Co/The 5.125% 11/15/2023 |
35,000 |
34,475 |
||
|
Hanesbrands Inc - 144A 4.625% 05/15/2024 |
30,000 |
29,175 |
||
|
HD Supply Inc - 144A 5.750% 04/15/2024 |
55,000 |
57,750 |
||
|
Hilton Domestic Operating Co Inc - 144A 5.125% 05/01/2026 |
73,000 |
73,000 |
||
|
Hilton Grand Vacations Borrower LLC/Hilton Grand Vacations Borrower Inc 6.125% 12/01/2024 |
15,000 |
15,225 |
||
|
Hilton Worldwide Finance LLC / Hilton Worldwide Finance Corp 4.625% 04/01/2025 |
25,000 |
24,375 |
||
|
Hilton Worldwide Finance LLC / Hilton Worldwide Finance Corp 4.875% 04/01/2027 |
10,000 |
9,725 |
||
|
Hughes Satellite Systems Corp 6.625% 08/01/2026 |
10,000 |
9,525 |
||
|
(5)iHeartCommunications Inc 9.000% 03/01/2021 |
135,000 |
104,288 |
||
|
(5)iHeartCommunications Inc 10.625% 03/15/2023 |
45,000 |
34,538 |
||
|
International Game Technology PLC - 144A 6.500% 02/15/2025 |
200,000 |
211,262 |
||
|
Interval Acquisition Corp 5.625% 04/15/2023 |
70,000 |
70,175 |
||
|
Jack Ohio Finance LLC / Jack Ohio Finance 1 Corp - 144A 6.750% 11/15/2021 |
105,000 |
108,413 |
||
|
JC Penney Corp Inc 6.375% 10/15/2036 |
55,000 |
30,388 |
||
|
L Brands Inc 6.750% 07/01/2036 |
50,000 |
42,250 |
||
|
Live Nation Entertainment Inc - 144A 4.875% 11/01/2024 |
20,000 |
19,725 |
||
|
LTF Merger Sub Inc - 144A 8.500% 06/15/2023 |
80,000 |
83,400 |
||
|
Mattel Inc - 144A 6.750% 12/31/2025 |
130,000 |
125,938 |
||
|
Meredith Corp - 144A 6.875% 02/01/2026 |
45,000 |
45,338 |
||
|
MGM Growth Properties Operating Partnership LP / MGP Finance Co Issuer Inc 4.500% 01/15/2028 |
10,000 |
9,125 |
||
|
MGM Growth Properties Operating Partnership LP / MGP Finance Co Issuer Inc 4.500% 09/01/2026 |
15,000 |
14,138 |
||
|
MGM Growth Properties Operating Partnership LP / MGP Finance Co Issuer Inc 5.625% 05/01/2024 |
20,000 |
20,450 |
||
|
MGM Resorts International 4.625% 09/01/2026 |
10,000 |
9,400 |
||
|
MGM Resorts International 5.750% 06/15/2025 |
55,000 |
55,464 |
||
|
MGM Resorts International 6.000% 03/15/2023 |
95,000 |
98,444 |
||
|
MGM Resorts International 6.750% 10/01/2020 |
30,000 |
31,575 |
||
|
*MGM Resorts International 7.750% 03/15/2022 |
215,000 |
235,425 |
||
|
Midcontinent Communications / Midcontinent Finance Corp – 144A 6.875% 08/15/2023 |
70,000 |
73,675 |
||
|
Neiman Marcus Group LTD LLC - 144A 8.000% 10/15/2021 |
40,000 |
25,200 |
||
|
(1)Neiman Marcus Group LTD LLC - 144A 8.750% (9.500%) 10/15/2021 |
87,780 |
55,521 |
||
|
Netflix Inc 4.875% 04/15/2028 |
65,000 |
61,506 |
||
|
Netflix Inc - 144A 5.875% 11/15/2028 |
56,000 |
56,140 |
||
|
Nexstar Broadcasting Inc 5.625% 08/01/2024 |
35,000 |
34,475 |
||
|
Nexstar Broadcasting Inc - 144A 6.125% 02/15/2022 |
15,000 |
15,244 |
||
|
Nielsen Finance LLC / Nielsen Finance Co - 144A 5.000% 04/15/2022 |
135,000 |
131,203 |
||
|
PetSmart Inc - 144A 5.875% 06/01/2025 |
70,000 |
54,950 |
||
|
PetSmart Inc - 144A 8.875% 06/01/2025 |
50,000 |
34,438 |
||
|
*Quebecor Media Inc 5.750% 01/15/2023 |
205,000 |
210,638 |
||
|
RHP Hotel Properties LP / RHP Finance Corp 5.000% 04/15/2021 |
160,000 |
161,200 |
||
|
Sabre GLBL Inc - 144A 5.250% 11/15/2023 |
40,000 |
40,100 |
||
|
Sabre GLBL Inc - 144A 5.375% 04/15/2023 |
65,000 |
65,366 |
||
|
Service Corp International/US 5.375% 05/15/2024 |
15,000 |
15,188 |
||
|
Service Corp International/US 7.500% 04/01/2027 |
135,000 |
150,525 |
||
|
SFR Group SA - 144A 7.375% 05/01/2026 |
200,000 |
197,750 |
||
|
Sirius XM Radio Inc - 144A 5.000% 08/01/2027 |
10,000 |
9,500 |
||
|
Sirius XM Radio Inc - 144A 5.375% 04/15/2025 |
135,000 |
133,988 |
||
|
Sirius XM Radio Inc - 144A 5.375% 07/15/2026 |
40,000 |
39,150 |
||
|
Sirius XM Radio Inc - 144A 6.000% 07/15/2024 |
155,000 |
160,231 |
||
|
Six Flags Entertainment Corp - 144A 4.875% 07/31/2024 |
20,000 |
19,525 |
||
|
Stars Group Holdings BV / Stars Group US Co- 144A Borrower LLC 7.000% 07/15/2026 |
29,000 |
29,870 |
||
|
TEGNA Inc 6.375% 10/15/2023 |
15,000 |
15,488 |
||
|
TEGNA Inc - 144A 4.875% 09/15/2021 |
15,000 |
14,944 |
||
|
TEGNA Inc - 144A 5.500% 09/15/2024 |
50,000 |
50,250 |
||
|
Tempur Sealy International Inc 5.500% 06/15/2026 |
80,000 |
76,300 |
||
|
Tempur Sealy International Inc 5.625% 10/15/2023 |
70,000 |
69,213 |
||
|
Tenneco Inc 5.000% 07/15/2026 |
35,000 |
30,800 |
||
|
Tenneco Inc 5.375% 12/15/2024 |
10,000 |
9,388 |
||
|
VICI Properties 1 LLC / VICI FC Inc 8.000% 10/15/2023 |
109,306 |
120,920 |
||
|
Videotron Ltd - 144A 5.375% 06/15/2024 |
35,000 |
36,138 |
||
|
Videotron Ltd / Videotron Ltee - 144A 5.125% 04/15/2027 |
30,000 |
29,475 |
||
|
Vista Outdoor Inc 5.875% 10/01/2023 |
135,000 |
132,638 |
||
|
Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp - 144A 5.500% 03/01/2025 |
120,000 |
118,500 |
||
|
Zayo Group LLC / Zayo Capital Inc 6.000% 04/01/2023 |
65,000 |
66,706 |
||
|
Zayo Group LLC / Zayo Capital Inc 6.375% 05/15/2025 |
70,000 |
72,450 |
||
|
|
8,197,771 |
|||
|
Consumer Staples (3.1%) |
||||
|
(2)Albertsons Cos Inc - 144A, (ICE LIBOR USD 3 Month + 3.75%), 6.085% 01/15/2024 |
48,000 |
48,600 |
||
|
Albertsons Cos LLC / Safeway Inc / New Albertson's Inc / Albertson's LLC 5.750% 03/15/2025 |
50,000 |
45,000 |
||
|
Central Garden & Pet Co 5.125% 02/01/2028 |
110,000 |
102,850 |
||
|
Central Garden & Pet Co 6.125% 11/15/2023 |
50,000 |
51,375 |
||
|
Coty Inc - 144A 6.500% 04/15/2026 |
100,000 |
93,625 |
||
|
High Ridge Brands Co - 144A 8.875% 03/15/2025 |
45,000 |
20,700 |
||
|
HRG Group Inc 7.750% 01/15/2022 |
50,000 |
51,563 |
||
|
Kronos Acquisition Holdings Inc - 144A 9.000% 08/15/2023 |
65,000 |
56,550 |
||
|
POST 5 1/2 03/01/25 - 144A 5.500% 03/01/2025 |
70,000 |
68,950 |
||
|
Post Holdings Inc - 144A 5.625% 01/15/2028 |
30,000 |
28,575 |
||
|
Post Holdings Inc - 144A 5.750% 03/01/2027 |
10,000 |
9,725 |
||
|
Reynolds Group Issuer Inc / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu 5.750% 10/15/2020 |
140,521 |
140,774 |
||
|
Reynolds Group Issuer Inc / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu - 144A 7.000% 07/15/2024 |
25,000 |
25,313 |
||
|
Rite Aid Corp - 144A 6.125% 04/01/2023 |
90,000 |
90,450 |
||
|
Spectrum Brands Inc 5.750% 07/15/2025 |
40,000 |
39,900 |
||
|
Spectrum Brands Inc 6.625% 11/15/2022 |
25,000 |
25,750 |
||
|
TreeHouse Foods Inc - 144A 6.000% 02/15/2024 |
75,000 |
75,000 |
||
|
|
974,699 |
|||
|
Energy (11.5%) |
||||
|
AES Corp/VA 4.000% 03/15/2021 |
55,000 |
54,931 |
||
|
Alta Mesa Holdings LP / Alta Mesa Finance Services Corp 7.875% 12/15/2024 |
5,000 |
5,200 |
||
|
Antero Midstream Partners LP / Antero Midstream Finance Corp 5.375% 09/15/2024 |
30,000 |
30,113 |
||
|
Antero Resources Corp 5.125% 12/01/2022 |
95,000 |
95,238 |
||
|
Antero Resources Corp 5.625% 06/01/2023 |
15,000 |
15,300 |
||
|
Blue Racer Midstream LLC / Blue Racer Finance Corp 6.625% 07/15/2026 |
25,000 |
25,188 |
||
|
Blue Racer Midstream LLC / Blue Racer Finance Corp - 144A 6.125% 11/15/2022 |
100,000 |
101,280 |
||
|
Boardwalk Pipelines LP 5.950% 06/01/2026 |
40,000 |
42,690 |
||
|
Carrizo Oil & Gas Inc 6.250% 04/15/2023 |
35,000 |
35,613 |
||
|
Carrizo Oil & Gas Inc 7.500% 09/15/2020 |
10,000 |
10,013 |
||
|
Carrizo Oil & Gas Inc 8.250% 07/15/2025 |
20,000 |
21,600 |
||
|
Cheniere Corpus Christi Holdings LLC 5.125% 06/30/2027 |
35,000 |
35,105 |
||
|
Chesapeake Energy Corp 5.500% 09/15/2026 |
15,000 |
14,915 |
||
|
Chesapeake Energy Corp 8.000% 01/15/2025 |
105,000 |
107,625 |
||
|
Chesapeake Energy Corp 8.000% 06/15/2027 |
60,000 |
61,350 |
||
|
Chesapeake Energy Corp - 144A 8.000% 12/15/2022 |
62,000 |
65,410 |
||
|
Communications Sales & Leasing Inc / CSL Capital LLC - 144A 7.125% 12/15/2024 |
75,000 |
68,250 |
||
|
Continental Resources Inc/OK 4.500% 04/15/2023 |
90,000 |
91,568 |
||
|
Continental Resources Inc/OK 5.000% 09/15/2022 |
10,000 |
10,147 |
||
|
Covey Park Energy LLC / Covey Park Finance Corp - 144A 7.500% 05/15/2025 |
40,000 |
40,600 |
||
|
Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp 6.250% 04/01/2023 |
35,000 |
35,700 |
||
|
DCP Midstream Operating LP 5.375% 07/15/2025 |
20,000 |
20,425 |
||
|
Denbury Resources Inc 9.250% 03/31/2022 |
58,000 |
61,480 |
||
|
Diamondback Energy Inc - 144A 5.375% 05/31/2025 |
30,000 |
29,925 |
||
|
EP Energy LLC / Everest Acquisition Finance Inc - 144A 7.750% 05/15/2026 |
155,000 |
158,100 |
||
|
EnLink Midstream Partners LP 4.400% 04/01/2024 |
75,000 |
72,004 |
||
|
EnLink Midstream Partners LP 4.850% 07/15/2026 |
25,000 |
24,036 |
||
|
EP Energy LLC / Everest Acquisition Finance Inc - 144A 8.000% 02/15/2025 |
25,000 |
19,063 |
||
|
EP Energy LLC / Everest Acquisition Finance Inc - 144A 8.000% 11/29/2024 |
35,000 |
35,350 |
||
|
GCI Inc 6.875% 04/15/2025 |
40,000 |
41,250 |
||
|
Gulfport Energy Corp 6.000% 10/15/2024 |
15,000 |
14,475 |
||
|
Gulfport Energy Corp 6.625% 05/01/2023 |
10,000 |
10,125 |
||
|
Halcon Resources Corp 6.750% 02/15/2025 |
60,000 |
55,650 |
||
|
Hess Infrastructure Partners LP / Hess Infrastructure Partners Finance Corp - 144A 5.625% 02/15/2026 |
25,000 |
25,125 |
||
|
Jagged Peak Energy LLC - 144A 5.875% 05/01/2026 |
30,000 |
29,475 |
||
|
Laredo Petroleum Inc 5.625% 01/15/2022 |
39,000 |
38,951 |
||
|
MEG Energy Corp - 144A 6.375% 01/30/2023 |
50,000 |
45,125 |
||
|
MEG Energy Corp - 144A 6.500% 01/15/2025 |
75,000 |
73,781 |
||
|
MEG Energy Corp - 144A 7.000% 03/31/2024 |
110,000 |
99,413 |
||
|
MPLX LP 4.875% 06/01/2025 |
25,000 |
25,969 |
||
|
MPLX LP 4.875% 12/01/2024 |
30,000 |
31,075 |
||
|
MPLX LP 5.500% 02/15/2023 |
75,000 |
76,325 |
||
|
Nabors Industries Inc - 144A 5.750% 02/01/2025 |
50,000 |
47,375 |
||
|
Newfield Exploration Co 5.375% 01/01/2026 |
25,000 |
25,563 |
||
|
Newfield Exploration Co 5.750% 01/30/2022 |
35,000 |
36,488 |
||
|
NGPL PipeCo LLC - 144A 4.375% 08/15/2022 |
45,000 |
45,113 |
||
|
NGPL PipeCo LLC - 144A 4.875% 08/15/2027 |
10,000 |
9,988 |
||
|
Oasis Petroleum Inc 6.875% 01/15/2023 |
80,000 |
81,800 |
||
|
Oasis Petroleum Inc 6.875% 03/15/2022 |
38,000 |
38,713 |
||
|
Oasis Petroleum Inc - 144A 6.250% 05/01/2026 |
35,000 |
35,175 |
||
|
Parsley Energy LLC / Parsley Finance Corp 5.625% 10/15/2027 |
25,000 |
24,813 |
||
|
Parsley Energy LLC / Parsley Finance Corp - 144A 5.250% 08/15/2025 |
30,000 |
29,625 |
||
|
Parsley Energy LLC / Parsley Finance Corp - 144A 5.375% 01/15/2025 |
20,000 |
19,900 |
||
|
Precision Drilling Corp 6.500% 12/15/2021 |
5,592 |
5,690 |
||
|
Precision Drilling Corp 7.750% 12/15/2023 |
45,000 |
47,588 |
||
|
Precision Drilling Corp - 144A 7.125% 01/15/2026 |
35,000 |
35,919 |
||
|
Range Resources Corp 4.875% 05/15/2025 |
50,000 |
46,313 |
||
|
Range Resources Corp 5.000% 03/15/2023 |
15,000 |
14,381 |
||
|
Range Resources Corp 5.000% 08/15/2022 |
10,000 |
9,800 |
||
|
Sanchez Energy Corp 6.125% 01/15/2023 |
25,000 |
17,156 |
||
|
SM Energy Co 5.625% 06/01/2025 |
30,000 |
29,213 |
||
|
SM Energy Co 6.125% 11/15/2022 |
70,000 |
71,750 |
||
|
SM Energy Co 6.500% 01/01/2023 |
15,000 |
15,225 |
||
|
Southwestern Energy Co 4.100% 03/15/2022 |
30,000 |
28,500 |
||
|
Southwestern Energy Co 6.700% 01/23/2025 |
100,000 |
98,625 |
||
|
Southwestern Energy Co 7.500% 04/01/2026 |
25,000 |
25,781 |
||
|
Southwestern Energy Co 7.750% 10/01/2027 |
25,000 |
26,141 |
||
|
Summit Midstream Holdings LLC / Summit Midstream Finance Corp 5.750% 04/15/2025 |
30,000 |
28,800 |
||
|
Sunoco LP / Sunoco Finance Corp - 144A 4.875% 01/15/2023 |
15,000 |
14,741 |
||
|
Sunoco LP / Sunoco Finance Corp - 144A 5.500% 02/15/2026 |
20,000 |
19,025 |
||
|
Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp - 144A 5.500% 01/15/2028 |
70,000 |
70,175 |
||
|
Targa Resources Partners LP / Targa Resources Partners Finance Corp 4.250% 11/15/2023 |
10,000 |
9,600 |
||
|
Targa Resources Partners LP / Targa Resources Partners Finance Corp 5.000% 01/15/2028 |
35,000 |
33,031 |
||
|
Targa Resources Partners LP / Targa Resources Partners Finance Corp 5.125% 02/01/2025 |
15,000 |
14,925 |
||
|
Targa Resources Partners LP / Targa Resources Partners Finance Corp 6.750% 03/15/2024 |
120,000 |
126,600 |
||
|
Targa Resources Partners LP / Targa Resources Partners Finance Corp - 144A 5.875% 04/15/2026 |
40,000 |
40,800 |
||
|
Tesoro Logistics LP / Tesoro Logistics Finance Corp 5.250% 01/15/2025 |
25,000 |
25,842 |
||
|
Tesoro Logistics LP / Tesoro Logistics Finance Corp 6.250% 10/15/2022 |
11,000 |
11,372 |
||
|
Tesoro Logistics LP / Tesoro Logistics Finance Corp 6.375% 05/01/2024 |
25,000 |
26,615 |
||
|
Transocean Guardian Ltd - 144A 5.875% 01/15/2024 |
38,000 |
38,380 |
||
|
Transocean Inc 7.500% 01/15/2026 |
40,000 |
40,900 |
||
|
Transocean Pontus Ltd - 144A 6.125% 08/01/2025 |
16,000 |
16,300 |
||
|
Weatherford International Ltd 9.875% 02/15/2024 |
10,000 |
10,150 |
||
|
Whiting Petroleum Corp 5.750% 03/15/2021 |
15,000 |
15,300 |
||
|
Whiting Petroleum Corp 6.250% 04/01/2023 |
65,000 |
67,356 |
||
|
Whiting Petroleum Corp 6.625% 01/15/2026 |
15,000 |
15,534 |
||
|
WildHorse Resource Development Corp 6.875% 02/01/2025 |
60,000 |
60,600 |
||
|
WildHorse Resource Development Corp - 144A 6.875% 02/01/2025 |
15,000 |
15,150 |
||
|
WPX Energy Inc 5.250% 09/15/2024 |
10,000 |
9,938 |
||
|
WPX Energy Inc 5.750% 06/01/2026 |
24,000 |
24,060 |
||
|
WPX Energy Inc 6.000% 01/15/2022 |
9,000 |
9,338 |
||
|
WPX Energy Inc 8.250% 08/01/2023 |
65,000 |
73,535 |
||
|
|
3,639,652 |
|||
|
Financials (3.7%) |
||||
|
Adient Global Holdings Ltd - 144A 4.875% 08/15/2026 |
40,000 |
36,700 |
||
|
Ally Financial Inc 4.125% 02/13/2022 |
90,000 |
89,100 |
||
|
Ally Financial Inc 4.250% 04/15/2021 |
20,000 |
20,050 |
||
|
Ally Financial Inc 4.625% 03/30/2025 |
90,000 |
89,100 |
||
|
*Ally Financial Inc 4.625% 05/19/2022 |
165,000 |
165,843 |
||
|
Ally Financial Inc 5.750% 11/20/2025 |
40,000 |
41,450 |
||
|
(3)Citigroup Inc - 5.800% Perpetual Maturity |
35,000 |
35,823 |
||
|
(3)Citigroup Inc - 5.875% Perpetual Maturity |
30,000 |
30,780 |
||
|
(3)Citigroup Inc - 5.950% Perpetual Maturity |
10,000 |
10,100 |
||
|
Diamond 1 Finance Corp / Diamond 2 Finance Corp - 144A 5.450% 06/15/2023 |
60,000 |
63,055 |
||
|
Diamond 1 Finance Corp / Diamond 2 Finance Corp - 144A 5.875% 06/15/2021 |
20,000 |
20,481 |
||
|
Diamond 1 Finance Corp / Diamond 2 Finance Corp - 144A 6.020% 06/15/2026 |
75,000 |
79,285 |
||
|
Infinity Acquisition LLC / Infinity Acquisition Finance Corp - 144A 7.250% 08/01/2022 |
60,000 |
61,088 |
||
|
International Lease Finance Corp 4.625% 04/15/2021 |
10,000 |
10,185 |
||
|
inVentiv Group Holdings Inc/inVentiv Health Inc/inVentiv Health Clinical Inc – 144A 7.500% 10/01/2024 |
49,000 |
51,450 |
||
|
MSCI Inc - 144A 5.375% 05/15/2027 |
35,000 |
35,263 |
||
|
Nielsen Co Luxembourg SARL/The - 144A 5.500% 10/01/2021 |
20,000 |
19,950 |
||
|
PetSmart Inc - 144A 7.125% 03/15/2023 |
125,000 |
84,375 |
||
|
UPCB Finance IV Ltd - 144A 5.375% 01/15/2025 |
200,000 |
193,000 |
||
|
WMG Acquisition Corp - 144A 4.875% 11/01/2024 |
10,000 |
9,775 |
||
|
WMG Acquisition Corp - 144A 5.625% 04/15/2022 |
13,000 |
13,179 |
||
|
|
1,160,030 |
|||
|
Health Care (10.5%) |
||||
|
Avantor Inc - 144A 6.000% 10/01/2024 |
50,000 |
50,125 |
||
|
Care Capital Properties LP 5.125% 08/15/2026 |
40,000 |
38,392 |
||
|
CHS/Community Health Systems Inc - 144A 8.625% 01/15/2024 |
40,000 |
41,352 |
||
|
DaVita Inc 5.000% 05/01/2025 |
110,000 |
103,675 |
||
|
DJO Finco Inc / DJO Finance LLC / DJO Finance Corp - 144A 8.125% 06/15/2021 |
155,000 |
159,263 |
||
|
HCA Inc 5.250% 06/15/2026 |
65,000 |
65,975 |
||
|
*HCA Inc 5.375% 02/01/2025 |
515,000 |
521,438 |
||
|
HCA Inc 5.875% 02/15/2026 |
185,000 |
191,244 |
||
|
*HCA Inc 7.500% 02/15/2022 |
270,000 |
296,663 |
||
|
HealthSouth Corp 5.750% 09/15/2025 |
30,000 |
30,150 |
||
|
HealthSouth Corp 5.750% 11/01/2024 |
65,000 |
65,941 |
||
|
Hill- 144A Rom Holdings Inc - 5.000% 02/15/2025 |
10,000 |
9,650 |
||
|
Hill- 144A Rom Holdings Inc - 5.750% 09/01/2023 |
80,000 |
81,200 |
||
|
Hologic Inc 4.375% 10/15/2025 |
35,000 |
33,852 |
||
|
Kinetic Concepts Inc / KCI USA Inc - 144A 7.875% 02/15/2021 |
85,000 |
86,969 |
||
|
Mallinckrodt International Finance SA / Mallinckrodt CB LLC - 144A 5.500% 04/15/2025 |
45,000 |
36,900 |
||
|
Mallinckrodt International Finance SA / Mallinckrodt CB LLC - 144A 5.625% 10/15/2023 |
30,000 |
25,838 |
||
|
Mallinckrodt International Finance SA / Mallinckrodt CB LLC - 144A 5.750% 08/01/2022 |
25,000 |
22,750 |
||
|
Prestige Brands Inc - 144A 6.375% 03/01/2024 |
25,000 |
24,969 |
||
|
^(1)RTSX 10.000% (12.000%) 04/30/2023 |
39,239 |
34,138 |
||
|
Tenet Healthcare Corp 4.500% 04/01/2021 |
130,000 |
130,325 |
||
|
Tenet Healthcare Corp 6.750% 06/15/2023 |
115,000 |
116,748 |
||
|
*Tenet Healthcare Corp 8.125% 04/01/2022 |
265,000 |
282,225 |
||
|
Tenet Healthcare Corp - 144A 7.500% 01/01/2022 |
25,000 |
26,188 |
||
|
Valeant Pharmaceuticals International Inc 5.500% 11/01/2025 |
35,000 |
35,063 |
||
|
Valeant Pharmaceuticals International Inc - 144A 5.875% 05/15/2023 |
210,000 |
201,705 |
||
|
Valeant Pharmaceuticals International Inc - 144A 6.125% 04/15/2025 |
250,000 |
234,375 |
||
|
Valeant Pharmaceuticals International Inc - 144A 6.500% 03/15/2022 |
20,000 |
20,854 |
||
|
Valeant Pharmaceuticals International Inc - 144A 7.000% 03/15/2024 |
55,000 |
58,314 |
||
|
Valeant Pharmaceuticals International Inc - 144A 7.500% 07/15/2021 |
120,000 |
122,400 |
||
|
Valeant Pharmaceuticals International Inc - 144A 8.500% 01/31/2027 |
89,000 |
91,403 |
||
|
Valeant Pharmaceuticals International Inc - 144A 9.000% 12/15/2025 |
70,000 |
74,144 |
||
|
|
3,314,225 |
|||
|
Industrials (9.3%) |
||||
|
ACCO BRANDS CORP 5.250% 12/15/2024 |
65,000 |
63,863 |
||
|
ADT Corp/The 3.500% 07/15/2022 |
65,000 |
61,750 |
||
|
ADT Corp/The 4.125% 06/15/2023 |
30,000 |
28,350 |
||
|
AECOM 5.125% 03/15/2027 |
15,000 |
14,550 |
||
|
AECOM 5.875% 10/15/2024 |
15,000 |
15,713 |
||
|
Air Medical Group Holdings Inc - 144A 6.375% 05/15/2023 |
85,000 |
77,744 |
||
|
Aircastle Ltd 5.000% 04/01/2023 |
75,000 |
76,313 |
||
|
Allison Transmission Inc - 144A 5.000% 10/01/2024 |
30,000 |
29,475 |
||
|
American Woodmark Corp - 144A 4.875% 03/15/2026 |
60,000 |
57,150 |
||
|
Arconic Inc 5.900% 02/01/2027 |
65,000 |
65,000 |
||
|
Avis Budget Car Rental LLC / Avis Budget Finance Inc 5.500% 04/01/2023 |
45,000 |
44,325 |
||
|
Avis Budget Car Rental LLC / Avis Budget Finance Inc - 144A 6.375% 04/01/2024 |
145,000 |
142,463 |
||
|
Bombardier Inc - 144A 7.500% 03/15/2025 |
90,000 |
94,500 |
||
|
BWX Technologies Inc - 144A 5.375% 07/15/2026 |
10,000 |
10,150 |
||
|
CD&R Waterworks Merger Sub LLC - 144A 6.125% 08/15/2025 |
25,000 |
24,000 |
||
|
Clean Harbors Inc 5.125% 06/01/2021 |
25,000 |
25,063 |
||
|
CNH Industrial Capital LLC 4.375% 04/05/2022 |
40,000 |
40,250 |
||
|
CNH Industrial Capital LLC 4.375% 11/06/2020 |
35,000 |
35,459 |
||
|
Energizer Holdings Inc - 144A 5.500% 06/15/2025 |
75,000 |
73,781 |
||
|
Herc Rentals Inc - 144A 7.500% 06/01/2022 |
33,000 |
34,815 |
||
|
Herc Rentals Inc - 144A 7.750% 06/01/2024 |
71,000 |
76,082 |
||
|
Hertz Corp/The 6.250% 10/15/2022 |
50,000 |
44,750 |
||
|
Hertz Corp/The - 144A 5.500% 10/15/2024 |
180,000 |
141,750 |
||
|
Hertz Corp/The - 144A 7.625% 06/01/2022 |
90,000 |
87,638 |
||
|
Hillman Group Inc/The - 144A 6.375% 07/15/2022 |
95,000 |
90,817 |
||
|
Iron Mountain Inc 6.000% 08/15/2023 |
75,000 |
76,688 |
||
|
Jeld- 144A Wen Inc - 4.625% 12/15/2025 |
25,000 |
23,750 |
||
|
Jeld- 144A Wen Inc - 4.875% 12/15/2027 |
15,000 |
13,969 |
||
|
KLX Inc - 144A 5.875% 12/01/2022 |
85,000 |
88,081 |
||
|
Kratos Defense & Security Solutions Inc - 144A 6.500% 11/30/2025 |
30,000 |
30,975 |
||
|
Manitowoc Foodservice Inc 9.500% 02/15/2024 |
50,000 |
54,625 |
||
|
Mueller Water Products Inc 5.500% 06/15/2026 |
25,000 |
25,219 |
||
|
NXP BV / NXP Funding LLC - 144A 4.625% 06/01/2023 |
200,000 |
202,250 |
||
|
Oshkosh Corp 5.375% 03/01/2025 |
5,000 |
5,163 |
||
|
+^(4)Remington Outdoor Co 7.875% 05/01/2020 |
125,000 |
0 |
||
|
RBS Global Inc / Rexnord LLC 4.875% 12/15/2025 |
20,000 |
19,200 |
||
|
Sensata Technologies BV - 144A 4.875% 10/15/2023 |
180,000 |
181,350 |
||
|
SPX FLOW Inc - 144A 5.625% 08/15/2024 |
20,000 |
19,850 |
||
|
SPX FLOW Inc - 144A 5.875% 08/15/2026 |
45,000 |
45,000 |
||
|
Standard Industries Inc/NJ - 144A 4.750% 01/15/2028 |
90,000 |
82,350 |
||
|
Terex Corp - 144A 5.625% 02/01/2025 |
50,000 |
49,625 |
||
|
TransDigm Inc 6.500% 05/15/2025 |
50,000 |
50,563 |
||
|
TriMas Corp - 144A 4.875% 10/15/2025 |
40,000 |
38,300 |
||
|
Triumph Group Inc 4.875% 04/01/2021 |
80,000 |
74,200 |
||
|
Triumph Group Inc 7.750% 08/15/2025 |
40,000 |
37,300 |
||
|
United Rentals North America Inc 4.875% 01/15/2028 |
95,000 |
88,738 |
||
|
United Rentals North America Inc 5.500% 05/15/2027 |
75,000 |
74,318 |
||
|
United Rentals North America Inc 5.750% 11/15/2024 |
45,000 |
46,013 |
||
|
United Rentals North America Inc 5.875% 09/15/2026 |
35,000 |
35,525 |
||
|
Wabash National Corp - 144A 5.500% 10/01/2025 |
40,000 |
37,900 |
||
|
XPO Logistics Inc - 144A 6.125% 09/01/2023 |
20,000 |
20,550 |
||
|
XPO Logistics Inc - 144A 6.500% 06/15/2022 |
68,000 |
69,870 |
||
|
|
2,947,117 |
|||
|
Information Technology (7.7%) |
||||
|
ACI Worldwide Inc - 144A 6.375% 08/15/2020 |
55,000 |
55,000 |
||
|
*Amkor Technology Inc 6.375% 10/01/2022 |
115,000 |
117,300 |
||
|
Amkor Technology Inc 6.625% 06/01/2021 |
34,000 |
34,061 |
||
|
Anixter Inc 5.500% 03/01/2023 |
25,000 |
25,813 |
||
|
CDK Global Inc 4.875% 06/01/2027 |
15,000 |
14,681 |
||
|
CDW LLC / CDW Finance Corp 5.000% 09/01/2025 |
76,000 |
75,216 |
||
|
Cogent Communications Finance Inc - 144A 5.625% 04/15/2021 |
90,000 |
90,000 |
||
|
Cogent Communications Group Inc - 144A 5.375% 03/01/2022 |
70,000 |
71,225 |
||
|
CommScope Technologies Finance LLC - 144A 6.000% 06/15/2025 |
170,000 |
175,100 |
||
|
Entegris Inc 4.625% 02/10/2026 |
55,000 |
52,113 |
||
|
Equinix Inc 5.375% 01/01/2022 |
20,000 |
20,675 |
||
|
Equinix Inc 5.750% 01/01/2025 |
10,000 |
10,313 |
||
|
Fair Isaac Corp - 144A 5.250% 05/15/2026 |
23,000 |
23,099 |
||
|
First Data Corp - 144A 5.375% 08/15/2023 |
188,000 |
190,585 |
||
|
First Data Corp - 144A 5.750% 01/15/2024 |
370,000 |
378,399 |
||
|
Gartner Inc - 144A 5.125% 04/01/2025 |
105,000 |
105,934 |
||
|
Inception Merger Sub Inc / Rackspace Hosting Inc - 144A 8.625% 11/15/2024 |
50,000 |
50,500 |
||
|
(1)Infor Software Parent LLC / Infor Software Parent Inc – 144A 7.125% (7.875%) 05/01/2021 |
105,000 |
106,050 |
||
|
Infor US Inc 6.500% 05/15/2022 |
215,000 |
217,688 |
||
|
Informatica LLC - 144A 7.125% 07/15/2023 |
95,000 |
96,663 |
||
|
Magnachip Semiconductor Corp 6.625% 07/15/2021 |
95,000 |
92,388 |
||
|
Plantronics Inc - 144A 5.500% 05/31/2023 |
40,000 |
39,700 |
||
|
Riverbed Technology Inc - 144A 8.875% 03/01/2023 |
15,000 |
13,969 |
||
|
*Sabine Pass Liquefaction LLC 5.750% 05/15/2024 |
100,000 |
107,846 |
||
|
Sabine Pass Liquefaction LLC 5.875% 06/30/2026 |
15,000 |
16,313 |
||
|
Sabine Pass Liquefaction LLC 6.250% 03/15/2022 |
100,000 |
107,927 |
||
|
Sinclair Television Group Inc 6.125% 10/01/2022 |
105,000 |
106,838 |
||
|
Sinclair Television Group Inc - 144A 5.125% 02/15/2027 |
20,000 |
18,550 |
||
|
Sinclair Television Group Inc - 144A 5.625% 08/01/2024 |
20,000 |
19,750 |
||
|
|
2,433,692 |
|||
|
Materials (4.5%) |
||||
|
Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc – 144A 7.250% 05/15/2024 |
200,000 |
208,500 |
||
|
BWAY Holding Co - 144A 5.500% 04/15/2024 |
40,000 |
39,050 |
||
|
Chemours Co/The 6.625% 05/15/2023 |
60,000 |
62,850 |
||
|
Cheniere Corpus Christi Holdings LLC 5.875% 03/31/2025 |
40,000 |
42,100 |
||
|
Freeport McMoRan Inc 3.875% 03/15/2023 |
150,000 |
144,375 |
||
|
GCP Applied Technologies Inc - 144A 5.500% 04/15/2026 |
60,000 |
59,400 |
||
|
Hexion Inc 6.625% 04/15/2020 |
115,000 |
108,388 |
||
|
Huntsman International LLC 5.125% 11/15/2022 |
120,000 |
123,600 |
||
|
*INEOS Group Holdings SA - 144A 5.625% 08/01/2024 |
200,000 |
198,000 |
||
|
+^(4)(5)Noranda Aluminum Acquisition Corp 11.000% 06/01/2019 |
40,000 |
0 |
||
|
NOVA Chemicals Corp - 144A 4.875% 06/01/2024 |
30,000 |
28,979 |
||
|
NOVA Chemicals Corp - 144A 5.250% 06/01/2027 |
25,000 |
23,400 |
||
|
Novelis Corp - 144A 5.875% 09/30/2026 |
45,000 |
43,144 |
||
|
Novelis Corp - 144A 6.250% 08/15/2024 |
25,000 |
25,063 |
||
|
Rain CII Carbon LLC / CII Carbon Corp - 144A 7.250% 04/01/2025 |
65,000 |
66,625 |
||
|
+^(4)(5)Reichhold Industries Inc - 144A 9.000% 05/08/2040 |
97,425 |
0 |
||
|
Scotts Miracle Gro Co/The 5.250% 12/15/2026 |
65,000 |
62,075 |
||
|
Scotts Miracle Gro Co/The 6.000% 10/15/2023 |
75,000 |
77,250 |
||
|
Trinseo Materials Operating SCA / Trinseo Materials Finance Inc – 144A 5.375% 09/01/2025 |
45,000 |
44,438 |
||
|
Venator Finance S.a r.l. / Venator Materials Corp - 144A 5.750% 07/15/2025 |
50,000 |
46,250 |
||
|
WR Grace & Co- 144A Conn - 5.625% 10/01/2024 |
10,000 |
10,500 |
||
|
|
1,413,985 |
|||
|
Real Estate (1.5%) |
||||
|
Communications Sales & Leasing Inc / CSL Capital LLC 8.250% 10/15/2023 |
70,000 |
65,450 |
||
|
Communications Sales & Leasing Inc / CSL Capital LLC - 144A 6.000% 04/15/2023 |
30,000 |
28,950 |
||
|
Corrections Corp of America 4.625% 05/01/2023 |
113,000 |
109,610 |
||
|
Corrections Corp of America 5.000% 10/15/2022 |
25,000 |
24,938 |
||
|
Equinix Inc 5.875% 01/15/2026 |
65,000 |
67,194 |
||
|
ESH Hospitality Inc - 144A 5.250% 05/01/2025 |
25,000 |
24,253 |
||
|
GEO Group Inc/The 5.125% 04/01/2023 |
20,000 |
19,469 |
||
|
GEO Group Inc/The 5.875% 01/15/2022 |
75,000 |
75,750 |
||
|
GEO Group Inc/The 5.875% 10/15/2024 |
40,000 |
39,000 |
||
|
GEO Group Inc/The 6.000% 04/15/2026 |
25,000 |
24,375 |
||
|
|
478,988 |
|||
|
Telecommunication Services (10.3%) |
||||
|
CenturyLink Inc 5.625% 04/01/2025 |
25,000 |
23,875 |
||
|
CenturyLink Inc 5.800% 03/15/2022 |
45,000 |
44,944 |
||
|
CenturyLink Inc 6.750% 12/01/2023 |
100,000 |
102,500 |
||
|
CSC Holdings LLC - 144A 10.875% 10/15/2025 |
184,000 |
213,440 |
||
|
EP Energy LLC / Everest Acquisition Finance Inc - 144A 9.375% 05/01/2024 |
130,000 |
106,925 |
||
|
Frontier Communications Corp 6.875% 01/15/2025 |
65,000 |
40,950 |
||
|
Frontier Communications Corp 8.500% 04/01/2026 |
45,000 |
43,200 |
||
|
Frontier Communications Corp 11.000% 09/15/2025 |
150,000 |
121,641 |
||
|
GCI Inc 6.750% 06/01/2021 |
70,000 |
70,907 |
||
|
Intelsat Jackson Holdings SA 5.500% 08/01/2023 |
115,000 |
105,800 |
||
|
*Intelsat Jackson Holdings SA 7.250% 10/15/2020 |
340,000 |
340,952 |
||
|
Intelsat Jackson Holdings SA 7.500% 04/01/2021 |
35,000 |
35,131 |
||
|
Intelsat Jackson Holdings SA - 144A 8.000% 02/15/2024 |
20,000 |
21,100 |
||
|
Intelsat Jackson Holdings SA - 144A 9.750% 07/15/2025 |
90,000 |
96,188 |
||
|
Level 3 Communications Inc 5.750% 12/01/2022 |
55,000 |
55,206 |
||
|
Level 3 Financing Inc 5.375% 01/15/2024 |
35,000 |
34,650 |
||
|
Level 3 Financing Inc 5.375% 05/01/2025 |
55,000 |
53,625 |
||
|
Qwest Capital Funding Inc 7.750% 02/15/2031 |
35,000 |
31,325 |
||
|
SBA Communications Corp 4.875% 09/01/2024 |
50,000 |
48,375 |
||
|
Sprint Capital Corp 8.750% 03/15/2032 |
290,000 |
312,113 |
||
|
Sprint Corp 7.625% 02/15/2025 |
290,000 |
303,233 |
||
|
Sprint Corp 7.625% 03/01/2026 |
15,000 |
15,563 |
||
|
Sprint Corp 7.875% 09/15/2023 |
425,000 |
453,688 |
||
|
T Mobile USA Inc 4.750% 02/01/2028 |
30,000 |
27,816 |
||
|
T Mobile USA Inc 6.375% 03/01/2025 |
50,000 |
52,125 |
||
|
T Mobile USA Inc 6.500% 01/15/2024 |
100,000 |
104,250 |
||
|
T Mobile USA Inc 6.500% 01/15/2026 |
115,000 |
120,606 |
||
|
+(4)T Mobile USA Inc 4.750% 02/01/2028 |
30,000 |
0 |
||
|
+(4)T Mobile USA Inc 6.375% 03/01/2025 |
50,000 |
0 |
||
|
+(4)T Mobile USA Inc 6.500% 01/15/2024 |
100,000 |
0 |
||
|
+(4)T Mobile USA Inc 6.500% 01/15/2026 |
115,000 |
0 |
||
|
United States Cellular Corp 6.700% 12/15/2033 |
80,000 |
82,325 |
||
|
Windstream Services LLC 6.375% 08/01/2023 |
5,000 |
2,863 |
||
|
Windstream Services LLC 7.750% 10/15/2020 |
15,000 |
13,500 |
||
|
Windstream Services LLC / Windstream Finance Corp - 144A 8.750% 12/15/2024 |
292,000 |
188,340 |
||
|
|
3,267,153 |
|||
|
Utilities (1.0%) |
||||
|
AES Corp/VA 4.875% 05/15/2023 |
15,000 |
15,056 |
||
|
AES Corp/VA 6.000% 05/15/2026 |
10,000 |
10,450 |
||
|
AmeriGas Partners LP / AmeriGas Finance Corp 5.500% 05/20/2025 |
40,000 |
38,700 |
||
|
AmeriGas Partners LP / AmeriGas Finance Corp 5.875% 08/20/2026 |
70,000 |
68,075 |
||
|
Calpine Corp - 144A 5.250% 06/01/2026 |
30,000 |
28,350 |
||
|
Dynegy Inc 7.375% 11/01/2022 |
45,000 |
46,969 |
||
|
Dynegy Inc 7.625% 11/01/2024 |
25,000 |
26,789 |
||
|
Dynegy Inc - 144A 8.000% 01/15/2025 |
25,000 |
27,156 |
||
|
NRG Energy Inc 6.250% 07/15/2022 |
40,000 |
41,250 |
||
|
NRG Energy Inc 6.625% 01/15/2027 |
30,000 |
30,900 |
||
|
|
333,695 |
|||
|
|
||||
|
TOTAL CORPORATE BONDS (COST: $28,529,787) |
$ |
28,161,007 |
||
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCKS (2.3%) |
||||
|
Consumer Discretionary (1.5%) |
Shares |
|||
|
(4)Caesars Entertainment Corp |
5,031 |
$ |
56,850 |
|
|
^VICI Properties, Inc |
20,727 |
|
421,794 |
|
|
|
|
478,645 |
||
|
Energy (0.1%) |
||||
|
(4)Halcon Resources Corp |
6,520 |
$ |
25,493 |
|
|
|
||||
|
Health Care (0.0%) |
||||
|
+^(4)21st Century Oncology Inc |
135 |
$ |
5,400 |
|
|
|
||||
|
Industrials (0.0%) |
||||
|
+^(4)Remington Outdoor Co |
1,284 |
$ |
10,567 |
|
|
|
||||
|
Material (0.7%) |
||||
|
+^(4)Reichhold Cayman |
162 |
$ |
156,492 |
|
|
+^(4)UCI International Holdings Inc |
2,633 |
|
50,685 |
|
|
|
|
207,177 |
||
|
|
||||
|
TOTAL COMMON STOCK (COST: $752,172) |
$ |
727,282 |
||
|
|
||||
|
CONVERTIBLE PREFERRED STOCKS (0.2%) |
||||
|
Health Care (0.2%) |
Shares |
|||
|
+^(4)RTSX 15.000% |
207 |
$ |
56,925 |
|
|
|
||||
|
TOTAL CONVERTIBLE PREFERRED STOCK (COST: $14,025) |
$ |
56,925 |
||
|
|
||||
|
WARRANTS (0.0%) |
||||
|
Industrials (0.0%) |
Shares |
|||
|
+^Jack Cooper Enterprises Inc |
175 |
$ |
0 |
|
|
+^Jack Cooper Enterprises Inc |
99 |
0 |
||
|
+^Remington Outdoor Co |
1,295 |
0 |
||
|
|
$ |
0 |
||
|
|
||||
|
TOTAL WARRANTS (COST:$0) |
$ |
0 |
||
|
|
||||
|
TOTAL INVESTMENTS IN SECURITIES (COST: $29,295,984) (91.5%) |
$ |
28,945,214 |
||
|
|
|
|
|
|
|
OTHER ASSETS LESS LIABILITIES (8.5%) |
$ |
2,675,559 |
||
|
|
||||
|
NET ASSETS (100.0%) |
$ |
31,620,773 |
||
|
|
||||
|
(1) Interest or dividend is paid-in-kind, when applicable. Rate paid in-kind is shown in parenthesis. |
||||
|
(2) Variable rate security. Interest rates reset periodically. Interest rate shown reflects the rate in effect at July 31, 2018. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description above. |
||||
|
(3) This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. |
||||
|
(4) Non-income producing security. |
||||
|
(5) Issue is in default. |
||||
|
+ Security is a Level 3 asset as a result of unavailable quoted prices from and active market or the unavailability of other significant observable inputs. |
||||
|
* Indicates bonds are segregated by the custodian to cover when-issued or delayed-delivery purchases. |
||||
|
^ Deemed by management to be illiquid security. See note 2. Total market value of illiquid securities amount to $736,002, representing 2.3% of net assets as of July 31, 2018. |
||||
|
144A - Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid under procedures approved by the Fund’s Board of Trustees and may normally be sold to qualified institutional buyers in transactions exempt from registration. Total market value of Rule 144A Securities amounts to $12,620,205, representing 39.9% of net assets as of July 31st, 2018. |
||||
|
|
||||
|
|
||||
|
The accompanying notes are an integral part of these financial statements. |
||||
WILLISTON BASIN/MID-NORTH AMERICA STOCK FUND
PORTFOLIO MARKET SECTORS July 31, 2018
|
Energy |
94.7% |
|
Cash Equivalents and Other |
1.5% |
|
Industrials |
1.5% |
|
Utilities |
1.2% |
|
Materials |
1.1% |
|
100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS July 31, 2018
|
Fair |
||||
|
Shares |
Value |
|||
|
COMMON STOCKS (98.5%) |
||||
|
|
||||
|
Energy (94.7%) |
||||
|
Royal Dutch Shell PLC ADR |
30,000 |
$ |
2,131,200 |
|
|
Anadarko Petroleum Corp |
95,000 |
6,949,250 |
||
|
Andeavor |
106,000 |
15,906,360 |
||
|
*Apergy Corp |
290,000 |
11,890,000 |
||
|
Archrock Inc |
740,000 |
10,101,000 |
||
|
*Cactus Inc |
50,000 |
1,636,000 |
||
|
*Callon Petroleum Co |
210,000 |
2,259,600 |
||
|
*Cheniere Energy Inc |
70,000 |
4,445,000 |
||
|
*Concho Resources Inc |
12,800 |
1,866,880 |
||
|
*Continental Resources Inc/OK |
93,000 |
5,939,910 |
||
|
*Covia Holdings Corp |
36,000 |
649,080 |
||
|
Delek US Holdings Inc |
200,000 |
10,664,000 |
||
|
Enbridge Inc |
240,000 |
8,503,200 |
||
|
Exxon Mobil Corp |
90,000 |
7,335,900 |
||
|
*FTS International Inc |
210,000 |
2,520,000 |
||
|
*Forum Energy Technologies Inc |
550,000 |
7,232,500 |
||
|
Halliburton Co |
375,000 |
15,907,500 |
||
|
Hess Corp |
80,000 |
5,250,400 |
||
|
*#Independence Contract Drilling Inc |
520,000 |
2,095,600 |
||
|
*Keane Group Inc |
480,000 |
6,772,800 |
||
|
Kinder Morgan Inc/DE |
1,215,000 |
21,602,700 |
||
|
Marathon Oil Corp |
180,000 |
3,801,600 |
||
|
National Oilwell Varco Inc |
170,000 |
8,265,400 |
||
|
Noble Energy Inc |
300,000 |
10,827,000 |
||
|
ONEOK Inc |
120,000 |
8,452,800 |
||
|
*Parsley Energy Inc |
290,000 |
9,114,700 |
||
|
Patterson UTI Energy Inc |
420,000 |
7,224,000 |
||
|
Phillips 66 |
125,000 |
15,417,500 |
||
|
Pioneer Natural Resources Co |
105,000 |
19,873,350 |
||
|
*ProPetro Holding Corp |
850,000 |
13,974,000 |
||
|
RPC Inc |
60,000 |
888,000 |
||
|
Schlumberger Ltd |
90,000 |
6,076,800 |
||
|
*Select Energy Services Inc |
240,000 |
3,667,200 |
||
|
SemGroup Corp |
350,000 |
8,802,500 |
||
|
*Solaris Oilfield Infrastructure Inc |
180,000 |
2,824,200 |
||
|
Suncor Energy Inc |
70,000 |
2,949,800 |
||
|
*Superior Energy Services Inc |
200,000 |
1,968,000 |
||
|
TransCanada Corp |
180,000 |
8,091,000 |
||
|
US Silica Holdings Inc |
100,000 |
2,696,000 |
||
|
Valero Energy Corp |
43,000 |
5,089,050 |
||
|
*Whiting Petroleum Corp |
80,000 |
3,972,000 |
||
|
Williams Cos Inc/The |
705,000 |
20,973,750 |
||
|
*WPX Energy Inc |
720,000 |
13,514,400 |
||
|
Nabors Industries Ltd |
300,000 |
1,794,000 |
||
|
TechnipFMC |
265,000 |
8,625,750 |
||
|
|
|
340,541,680 |
||
|
Industrials (1.5%) |
||||
|
Canadian Pacific Railway Ltd |
27,000 |
|
5,355,180 |
|
|
|
||||
|
Materials (1.1%) |
||||
|
Flotek Industries Inc |
20,000 |
62,000 |
||
|
Westlake Chemical Corp |
20,000 |
2,144,400 |
||
|
LyondellBasell Industries NV |
16,000 |
1,772,640 |
||
|
|
|
3,979,040 |
||
|
Utilities (1.2%) |
||||
|
OGE Energy Corp |
120,000 |
|
4,348,800 |
|
|
|
||||
|
TOTAL COMMON STOCKS (COST: $330,058,573) |
$ |
354,224,700 |
||
|
|
||||
|
OTHER ASSETS AND LIABILITES (1.5%) |
$ |
5,224,279 |
||
|
|
||||
|
NET ASSETS (100.0%) |
$ |
359,448,979 |
||
|
|
||||
|
ADR - American Depositary Receipt |
||||
|
* Non-income producing |
||||
|
# Deemed by management to be illiquid security. See Note 2. Total market value of illiquid securities amounts to $2,095,600, representing 0.6% of net asset as of July 31, 2018. |
||||
|
|
||||
|
|
||||
|
The accompanying notes are an integral part of these financial statements. |
||||
FINANCIAL STATEMENTS
Statements of Assets and Liabilities | July 31, 2018
|
Dividend |
Energized |
Growth |
||||||
|
Harvest |
Dividend |
& Income |
||||||
|
Fund |
Fund |
Fund |
||||||
|
ASSETS |
||||||||
|
Investments in securities, at cost |
$ |
123,913,194 |
$ |
6,733,297 |
$ |
25,837,045 |
||
|
|
||||||||
|
Investments in securities, at value |
$ |
129,732,809 |
$ |
7,235,146 |
$ |
35,230,179 |
||
|
Cash and cash equivalents |
331,773 |
69,032 |
668,828 |
|||||
|
Security sales receivable |
2,477,652 |
0 |
0 |
|||||
|
Receivable for Fund shares sold |
31,155 |
0 |
100 |
|||||
|
Accrued dividends receivable |
339,209 |
6,942 |
35,548 |
|||||
|
Accrued interest receivable |
516 |
128 |
322 |
|||||
|
Receivable from affiliate |
67,853 |
10,492 |
19,882 |
|||||
|
Prepaid expenses |
11,539 |
15,808 |
12,465 |
|||||
|
Total assets |
$ |
132,992,506 |
$ |
7,337,548 |
$ |
35,967,324 |
||
|
|
||||||||
|
LIABILITIES |
||||||||
|
Payable for securities purchased |
$ |
1,653,225 |
$ |
0 |
$ |
0 |
||
|
Payable for Fund shares redeemed |
242,610 |
4,848 |
15,636 |
|||||
|
Trustees’ fees payable |
7,028 |
317 |
1,803 |
|||||
|
Payable to affiliates |
166,438 |
12,547 |
55,353 |
|||||
|
Accrued expenses |
4,788 |
3,137 |
10,822 |
|||||
|
Total liabilities |
$ |
2,074,089 |
$ |
20,849 |
$ |
83,614 |
||
|
|
||||||||
|
NET ASSETS |
$ |
130,918,417 |
$ |
7,316,699 |
$ |
35,883,710 |
||
|
|
||||||||
|
NET ASSETS ARE REPRESENTED BY: |
||||||||
|
Capital stock outstanding, $.001 par value, unlimited shares authorized |
$ |
120,113,985 |
$ |
6,666,862 |
$ |
24,975,663 |
||
|
Accumulated undistributed net realized gain (loss) on investments |
4,837,230 |
142,938 |
1,341,077 |
|||||
|
Accumulated undistributed net investment income (loss) |
147,587 |
5,050 |
173,836 |
|||||
|
Unrealized appreciation (depreciation) on investments |
|
5,819,615 |
|
501,849 |
|
9,393,134 |
||
|
|
||||||||
|
NET ASSETS |
$ |
130,918,417 |
$ |
7,316,699 |
$ |
35,883,710 |
||
|
|
||||||||
|
Net Assets - Class A |
$ |
95,339,549 |
$ |
3,286,201 |
$ |
34,947,705 |
||
|
Net Assets - Class C |
$ |
14,014,163 |
$ |
379,144 |
$ |
195,046 |
||
|
Net Assets - Class I |
$ |
21,564,705 |
$ |
3,651,354 |
$ |
740,959 |
||
|
Shares outstanding - Class A |
6,694,540 |
256,466 |
617,285 |
|||||
|
Shares outstanding - Class C |
990,438 |
29,682 |
3,455 |
|||||
|
Shares outstanding - Class I |
1,513,100 |
284,879 |
13,072 |
|||||
|
Net asset value per share - Class A* |
$14.24 |
$12.81 |
$56.62 |
|||||
|
Net asset value per share - Class C* |
$14.15 |
$12.77 |
$56.45 |
|||||
|
Net asset value per share - Class I |
$14.25 |
$12.82 |
$56.68 |
|||||
|
Public offering price per share – Class A (sales charge of 5.00%) |
$14.99 |
$13.48 |
$59.60 |
|||||
|
|
||||||||
|
* Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
||||||||
|
|
||||||||
|
|
||||||||
|
The accompanying notes are an integral part of these financial statements. |
||||||||
FINANCIAL STATEMENTS
Statements of Assets and Liabilities | July 31, 2018
|
High |
WB/MNA |
||||
|
Income |
Stock |
||||
|
Fund |
Fund |
||||
|
ASSETS |
|||||
|
Investments in securities, at cost |
$ |
29,295,984 |
$ |
330,058,573 |
|
|
|
|||||
|
Investments in securities, at value |
$ |
28,945,214 |
$ |
354,224,700 |
|
|
Cash and cash equivalents |
1,899,185 |
6,622,259 |
|||
|
Receivable for Fund shares sold |
413,542 |
30,990 |
|||
|
Accrued dividends receivable |
0 |
243,000 |
|||
|
Accrued interest receivable |
480,919 |
4,239 |
|||
|
Receivable from affiliate |
22,035 |
0 |
|||
|
Prepaid expenses |
14,979 |
22,779 |
|||
|
Total assets |
$ |
31,775,874 |
$ |
361,147,967 |
|
|
|
|||||
|
LIABILITIES |
|||||
|
Payable for securities purchased |
$ |
58,409 |
$ |
0 |
|
|
Payable for Fund shares redeemed |
13,842 |
1,022,663 |
|||
|
Dividends payable |
28,541 |
0 |
|||
|
Trustees’ fees payable |
1,599 |
19,461 |
|||
|
Payable to affiliates |
45,048 |
493,665 |
|||
|
Accrued expenses |
7,662 |
163,199 |
|||
|
Total liabilities |
$ |
155,101 |
$ |
1,698,988 |
|
|
|
|||||
|
NET ASSETS |
$ |
31,620,773 |
$ |
359,448,979 |
|
|
|
|||||
|
NET ASSETS ARE REPRESENTED BY: |
|||||
|
Capital stock outstanding, $.001 par value, unlimited shares authorized |
$ |
32,842,785 |
$ |
463,820,740 |
|
|
Accumulated undistributed net realized gain (loss) on investments |
(871,254) |
(128,996,644) |
|||
|
Accumulated undistributed net investment income (loss) |
12 |
458,756 |
|||
|
Unrealized appreciation (depreciation) on investments |
|
(350,770) |
|
24,166,127 |
|
|
|
|||||
|
NET ASSETS |
$ |
31,620,773 |
$ |
359,448,979 |
|
|
|
|||||
|
Net Assets - Class A |
$ |
24,099,436 |
$ |
282,792,974 |
|
|
Net Assets - Class C |
$ |
4,812,679 |
$ |
31,899,268 |
|
|
Net Assets - Class I |
$ |
2,708,658 |
$ |
44,756,737 |
|
|
Shares outstanding - Class A |
3,145,010 |
50,477,419 |
|||
|
Shares outstanding - Class C |
626,715 |
5,766,034 |
|||
|
Shares outstanding - Class I |
353,768 |
7,985,536 |
|||
|
Net asset value per share - Class A* |
$7.66 |
$5.60 |
|||
|
Net asset value per share - Class C* |
$7.68 |
$5.53 |
|||
|
Net asset value per share - Class I |
$7.66 |
$5.60 |
|||
|
Public offering price per share – Class A (sales charge of 4.25% and 5.00%, respectively) |
$8.00 |
$5.89 |
|||
|
|
|||||
|
* Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
|||||
|
|
|||||
|
|
|||||
|
The accompanying notes are an integral part of these financial statements. |
|||||
FINANCIAL STATEMENTS
Statements of Operations | For the seven month period ended July 31, 2018
|
Dividend |
Energized |
Growth |
||||||
|
Harvest |
Dividend |
& Income |
||||||
|
Fund |
Fund |
Fund |
||||||
|
INVESTMENT INCOME |
||||||||
|
Dividends (net of foreign withholding taxes of $22,895, $9,602, and $0, respectively) |
$ |
3,090,973 |
$ |
157,314 |
$ |
428,787 |
||
|
Interest |
4,923 |
1,119 |
2,562 |
|||||
|
Total investment income |
$ |
3,095,896 |
$ |
158,433 |
$ |
431,349 |
||
|
|
||||||||
|
EXPENSES |
||||||||
|
Investment advisory fees |
$ |
604,627 |
$ |
27,128 |
$ |
206,417 |
||
|
Distribution (12b-1) fees - Class A |
148,099 |
3,901 |
50,361 |
|||||
|
Distribution (12b-1) fees - Class C |
89,960 |
1,956 |
69 |
|||||
|
Transfer agent fees |
152,146 |
13,547 |
44,191 |
|||||
|
Administrative service fees |
140,956 |
33,156 |
56,991 |
|||||
|
Professional fees |
19,226 |
2,267 |
6,022 |
|||||
|
Reports to shareholders |
4,338 |
111 |
4,061 |
|||||
|
License, fees, and registrations |
45,922 |
610 |
13,122 |
|||||
|
Audit fees |
8,705 |
393 |
2,233 |
|||||
|
Trustees’ fees |
7,034 |
317 |
1,804 |
|||||
|
Transfer agent out-of-pockets |
32,419 |
974 |
6,719 |
|||||
|
Custodian fees |
8,879 |
1,943 |
3,386 |
|||||
|
Legal fees |
4,061 |
175 |
1,031 |
|||||
|
Insurance expense |
2,305 |
56 |
638 |
|||||
|
Total expenses |
$ |
1,268,677 |
$ |
86,534 |
$ |
397,045 |
||
|
Less expenses waived or reimbursed (See Note 7) |
|
(466,834) |
|
(71,582) |
|
(139,533) |
||
|
Total net expenses |
$ |
801,843 |
$ |
14,952 |
$ |
257,512 |
||
|
|
|
|
|
|
|
|
||
|
NET INVESTMENT INCOME (LOSS) |
$ |
2,294,053 |
$ |
143,481 |
$ |
173,837 |
||
|
|
||||||||
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS |
||||||||
|
Net realized gain (loss) from investment transactions |
$ |
4,841,503 |
$ |
143,364 |
$ |
1,341,077 |
||
|
Net change in unrealized appreciation (depreciation) of investments |
(9,825,527) |
74,406 |
448,482 |
|||||
|
Net realized and unrealized gain (loss) on investments |
$ |
(4,984,024) |
$ |
217,770 |
$ |
1,789,559 |
||
|
|
||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ |
(2,689,971) |
$ |
361,251 |
$ |
1,963,396 |
||
|
|
||||||||
|
|
||||||||
|
The accompanying notes are an integral part of these financial statements. |
||||||||
FINANCIAL STATEMENTS
Statements of Operations | For the seven month period ended July 31, 2018
|
High |
WB/MNA |
||||
|
Income |
Stock |
||||
|
Fund |
Fund |
||||
|
INVESTMENT INCOME |
|||||
|
Dividends (net of foreign withholding taxes of $0 and $93,159, respectively) |
$ |
8,757 |
$ |
3,698,187 |
|
|
Interest |
1,096,421 |
37,134 |
|||
|
Total investment income |
$ |
1,105,178 |
$ |
3,735,321 |
|
|
|
|||||
|
EXPENSES |
|||||
|
Investment advisory fees |
$ |
155,635 |
$ |
1,118,874 |
|
|
Distribution (12b-1) fees - Class A |
34,686 |
882,626 |
|||
|
Distribution (12b-1) fees - Class C |
29,371 |
194,701 |
|||
|
Transfer agent fees |
29,008 |
377,876 |
|||
|
Administrative service fees |
53,726 |
330,726 |
|||
|
Professional fees |
5,605 |
50,643 |
|||
|
Reports to shareholders |
1,549 |
70,618 |
|||
|
License, fees, and registrations |
10,974 |
59,699 |
|||
|
Audit fees |
1,980 |
24,096 |
|||
|
Trustees’ fees |
1,600 |
19,477 |
|||
|
Transfer agent out-of-pockets |
3,074 |
89,402 |
|||
|
Custodian fees |
5,814 |
36,787 |
|||
|
Legal fees |
913 |
11,232 |
|||
|
Insurance expense |
575 |
9,808 |
|||
|
Total expenses |
$ |
334,510 |
$ |
3,276,565 |
|
|
Less expenses waived or reimbursed (See Note 7) |
|
(153,162) |
|
0 |
|
|
Total net expenses |
$ |
181,348 |
$ |
3,276,565 |
|
|
|
|
|
|
|
|
|
NET INVESTMENT INCOME (LOSS) |
$ |
923,830 |
$ |
458,756 |
|
|
|
|||||
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS |
|||||
|
Net realized gain (loss) from investment transactions |
$ |
99,791 |
$ |
34,919,386 |
|
|
Net change in unrealized appreciation (depreciation) of investments |
(685,500) |
(30,732,891) |
|||
|
Net realized and unrealized gain (loss) on investments |
$ |
(585,709) |
$ |
4,186,495 |
|
|
|
|||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ |
338,121 |
$ |
4,645,251 |
|
|
|
|||||
|
|
|||||
|
The accompanying notes are an integral part of these financial statements. |
|||||
FINANCIAL STATEMENTS
Statements of Operations | For the Year Ended December 31, 2017
|
Dividend |
Energized |
Growth |
|||||||
|
Harvest |
Dividend |
& Income |
|||||||
|
Fund |
Fund |
Fund |
|||||||
|
INVESTMENT INCOME |
|||||||||
|
Interest |
$ |
7,157 |
$ |
577 |
$ |
3,817 |
|||
|
Dividends (net of foreign withholding taxes of $24,307, $5,946, and $0, respectively) |
5,676,147 |
130,309 |
778,080 |
||||||
|
Total investment income |
$ |
5,683,304 |
$ |
130,886 |
$ |
781,897 |
|||
|
|
|||||||||
|
EXPENSES |
|||||||||
|
Investment advisory fees |
$ |
1,115,027 |
$ |
17,321 |
$ |
337,391 |
|||
|
Distribution (12b-1) fees - Class A |
295,833 |
3,343 |
82,782 |
||||||
|
Distribution (12b-1) fees - Class C |
150,779 |
1,306 |
1,777 |
||||||
|
Transfer agent fees |
279,602 |
16,160 |
72,725 |
||||||
|
Administrative service fees |
256,116 |
51,101 |
95,212 |
||||||
|
Professional fees |
28,611 |
3,062 |
9,074 |
||||||
|
Reports to shareholders |
7,769 |
738 |
6,688 |
||||||
|
License, fees, and registrations |
77,971 |
1,507 |
22,979 |
||||||
|
Audit fees |
13,284 |
209 |
2,908 |
||||||
|
Trustees’ fees |
10,913 |
173 |
2,492 |
||||||
|
Transfer agent out-of-pockets |
25,944 |
260 |
14,074 |
||||||
|
Custodian fees |
15,320 |
3,366 |
5,641 |
||||||
|
Legal fees |
10,395 |
167 |
2,395 |
||||||
|
Insurance expense |
4,075 |
54 |
1,102 |
||||||
|
Total expenses |
$ |
2,291,639 |
$ |
98,767 |
$ |
657,240 |
|||
|
Less expenses waived or reimbursed (See Note 7) |
|
(805,475) |
|
(91,773) |
|
(235,224) |
|||
|
Total net expenses |
$ |
1,486,164 |
$ |
6,994 |
$ |
422,016 |
|||
|
|
|
|
|
|
|
|
|||
|
NET INVESTMENT INCOME (LOSS) |
$ |
4,197,140 |
$ |
123,892 |
$ |
359,881 |
|||
|
|
|||||||||
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS |
|||||||||
|
Net realized gain (loss) from investment transactions |
$ |
7,371,905 |
$ |
138,192 |
$ |
1,348,985 |
|||
|
Net change in unrealized appreciation (depreciation) of investments |
3,624,853 |
246,834 |
4,092,657 |
||||||
|
Net realized and unrealized gain (loss) on investments |
$ |
10,996,758 |
$ |
385,026 |
$ |
5,441,642 |
|||
|
|
|||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ |
15,193,898 |
$ |
508,918 |
$ |
5,801,523 |
|||
|
|
|||||||||
|
|
|||||||||
|
The accompanying notes are an integral part of these financial statements. |
|||||||||
FINANCIAL STATEMENTS
Statements of Operations | For the Year Ended December 31, 2017
|
High |
WB/MNA |
|||||
|
Income |
Stock |
|||||
|
Fund |
Fund |
|||||
|
INVESTMENT INCOME |
||||||
|
Interest |
$ |
1,905,110 |
$ |
101,052 |
||
|
Dividends (net of foreign withholding taxes of $0, and $190,629, respectively) |
0 |
8,232,148 |
||||
|
Total investment income |
$ |
1,905,110 |
$ |
8,333,200 |
||
|
|
||||||
|
EXPENSES |
||||||
|
Investment advisory fees |
$ |
274,307 |
$ |
2,569,616 |
||
|
Distribution (12b-1) fees - Class A |
62,782 |
2,105,702 |
||||
|
Distribution (12b-1) fees - Class C |
53,004 |
416,202 |
||||
|
Transfer agent fees |
50,721 |
842,852 |
||||
|
Administrative service fees |
93,168 |
736,068 |
||||
|
Professional fees |
8,642 |
97,969 |
||||
|
Reports to shareholders |
2,477 |
120,009 |
||||
|
License, fees, and registrations |
19,317 |
101,890 |
||||
|
Audit fees |
2,807 |
44,795 |
||||
|
Trustees’ fees |
2,386 |
37,920 |
||||
|
Transfer agent out-of-pockets |
5,793 |
297,058 |
||||
|
Custodian fees |
9,861 |
62,929 |
||||
|
Legal fees |
2,290 |
38,570 |
||||
|
Insurance expense |
1,017 |
16,298 |
||||
|
Total expenses |
$ |
588,572 |
$ |
7,487,878 |
||
|
Less expenses waived or reimbursed (See Note 7) |
|
(188,884) |
|
0 |
||
|
Total net expenses |
$ |
399,688 |
$ |
7,487,878 |
||
|
|
|
|
|
|
||
|
NET INVESTMENT INCOME (LOSS) |
$ |
1,505,422 |
$ |
845,322 |
||
|
|
||||||
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS |
||||||
|
Net realized gain (loss) from investment transactions |
$ |
141,040 |
$ |
(14,327,931) |
||
|
Net change in unrealized appreciation (depreciation) of investments |
458,293 |
(46,858,694) |
||||
|
Net realized and unrealized gain (loss) on investments |
$ |
599,333 |
$ |
(61,186,625) |
||
|
|
||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ |
2,104,755 |
$ |
(60,341,303) |
||
|
|
||||||
|
The accompanying notes are an integral part of these financial statements. |
||||||
FINANCIAL STATEMENTS
Statements of Changes in Net Assets | For the seven month period ended July 31, 2018
|
Dividend |
Energized |
Growth |
||||||
|
Harvest |
Dividend |
& Income |
||||||
|
Fund |
Fund |
Fund |
||||||
|
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS |
||||||||
|
Net investment income (loss) |
$ |
2,294,053 |
$ |
143,481 |
$ |
173,837 |
||
|
Net realized gain (loss) from investment transactions |
4,841,503 |
143,364 |
1,341,077 |
|||||
|
Net change in unrealized appreciation (depreciation) of investments |
(9,825,527) |
74,406 |
448,482 |
|||||
|
Net increase (decrease) in net assets resulting from operations |
$ |
(2,689,971) |
$ |
361,251 |
$ |
1,963,396 |
||
|
|
||||||||
|
DISTRIBUTIONS TO SHAREHOLDERS FROM |
||||||||
|
Net investment income - Class A |
$ |
(1,597,686) |
$ |
(59,346) |
$ |
0 |
||
|
Net investment income - Class C |
(186,832) |
(6,034) |
0 |
|||||
|
Net investment income - Class I |
(361,948) |
(73,051) |
0 |
|||||
|
Total distributions |
$ |
(2,146,466) |
$ |
(138,431) |
$ |
0 |
||
|
|
||||||||
|
CAPITAL SHARE TRANSACTIONS |
||||||||
|
Proceeds from sale of shares - Class A |
$ |
8,645,601 |
$ |
1,292,753 |
$ |
1,373,154 |
||
|
Proceeds from sale of shares - Class C |
1,493,058 |
74,667 |
18,630 |
|||||
|
Proceeds from sale of shares - Class I |
8,677,481 |
695,596 |
204,619 |
|||||
|
Proceeds from reinvested dividends - Class A |
1,489,511 |
53,840 |
0 |
|||||
|
Proceeds from reinvested dividends - Class C |
165,772 |
6,034 |
0 |
|||||
|
Proceeds from reinvested dividends - Class I |
238,028 |
70,728 |
0 |
|||||
|
Cost of shares redeemed - Class A |
(22,864,105) |
(471,777) |
(2,940,040) |
|||||
|
Cost of shares redeemed - Class C |
(4,212,201) |
(6,530) |
(60,555) |
|||||
|
Cost of shares redeemed - Class I |
(7,951,909) |
(172,011) |
(191,248) |
|||||
|
Net increase (decrease) in net assets resulting from capital share transactions |
$ |
(14,318,764) |
$ |
1,543,300 |
$ |
(1,595,440) |
||
|
|
||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
$ |
(19,155,201) |
$ |
1,766,120 |
$ |
367,956 |
||
|
NET ASSETS, BEGINNING OF PERIOD |
150,073,618 |
5,550,579 |
35,515,754 |
|||||
|
NET ASSETS, END OF PERIOD |
$ |
130,918,417 |
$ |
7,316,699 |
$ |
35,883,710 |
||
|
|
|
|
|
|||||
|
Accumulated undistributed net investment income |
$ |
147,587 |
$ |
5,050 |
$ |
173,836 |
||
|
|
||||||||
|
|
||||||||
|
The accompanying notes are an integral part of these financial statements. |
||||||||
FINANCIAL STATEMENTS
Statements of Changes in Net Assets | For the seven month period ended July 31, 2018
|
High |
WB/MNA |
||||
|
Income |
Stock |
||||
|
Fund |
Fund |
||||
|
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS |
|||||
|
Net investment income (loss) |
$ |
923,830 |
$ |
458,756 |
|
|
Net realized gain (loss) from investment transactions |
99,791 |
34,919,386 |
|||
|
Net change in unrealized appreciation (depreciation) of investments |
(685,500) |
(30,732,891) |
|||
|
Net increase (decrease) in net assets resulting from operations |
$ |
338,121 |
$ |
4,645,251 |
|
|
|
|||||
|
DISTRIBUTIONS TO SHAREHOLDERS FROM |
|||||
|
Net investment income - Class A |
$ |
(714,035) |
$ |
0 |
|
|
Net investment income - Class C |
(129,018) |
0 |
|||
|
Net investment income - Class I |
(80,765) |
0 |
|||
|
Total distributions |
$ |
(923,818) |
$ |
0 |
|
|
|
|||||
|
CAPITAL SHARE TRANSACTIONS |
|||||
|
Proceeds from sale of shares - Class A |
$ |
1,502,414 |
$ |
6,502,358 |
|
|
Proceeds from sale of shares - Class C |
167,767 |
1,182,131 |
|||
|
Proceeds from sale of shares - Class I |
794,636 |
14,859,450 |
|||
|
Proceeds from reinvested dividends - Class A |
578,590 |
0 |
|||
|
Proceeds from reinvested dividends - Class C |
97,358 |
0 |
|||
|
Proceeds from reinvested dividends - Class I |
41,339 |
0 |
|||
|
Cost of shares redeemed - Class A |
(2,171,172) |
(67,364,312) |
|||
|
Cost of shares redeemed - Class C |
(753,110) |
(7,390,462) |
|||
|
Cost of shares redeemed - Class I |
(674,925) |
(30,560,458) |
|||
|
Net increase (decrease) in net assets resulting from capital share transactions |
$ |
(417,103) |
$ |
(82,771,293) |
|
|
|
|||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
$ |
(1,002,800) |
$ |
(78,126,042) |
|
|
NET ASSETS, BEGINNING OF PERIOD |
32,623,573 |
437,575,021 |
|||
|
NET ASSETS, END OF PERIOD |
$ |
31,620,773 |
$ |
359,448,979 |
|
|
|
|
|
|||
|
Accumulated undistributed net investment income |
$ |
12 |
$ |
458,756 |
|
|
|
|||||
|
|
|||||
|
The accompanying notes are an integral part of these financial statements. |
|||||
FINANCIAL STATEMENTS
Statements of Changes in Net Assets | For the Year Ended December 31, 2017
|
|
Dividend |
Energized |
Growth |
||||||
|
|
Harvest |
Dividend |
& Income |
||||||
|
|
Fund |
Fund |
Fund |
||||||
|
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS |
|||||||||
|
Net investment income (loss) |
$ |
4,197,140 |
$ |
123,892 |
$ |
359,881 |
|||
|
Net realized gain (loss) from investment transactions |
7,371,905 |
138,192 |
1,348,985 |
||||||
|
Net change in unrealized appreciation (depreciation) of investments |
3,624,853 |
246,834 |
4,092,657 |
||||||
|
Net increase (decrease) in net assets resulting from operations |
$ |
15,193,898 |
$ |
508,918 |
$ |
5,801,523 |
|||
|
|
|||||||||
|
DISTRIBUTIONS TO SHAREHOLDERS FROM |
|||||||||
|
Net investment income - Class A |
$ |
(3,318,503) |
$ |
(64,608) |
$ |
(352,301) |
|||
|
Net investment income - Class C |
(340,432) |
(6,374) |
(547) |
||||||
|
Net investment income - Class I |
(538,205) |
(52,910) |
(8,200) |
||||||
|
Net realized gain on investments - Class A |
(5,792,431) |
(60,024) |
(2,029,196) |
||||||
|
Net realized gain on investments - Class C |
(884,466) |
(7,236) |
(10,839) |
||||||
|
Net realized gain on investments - Class I |
(1,125,623) |
(79,472) |
(38,245) |
||||||
|
Total distributions |
$ |
(11,999,660) |
$ |
(270,624) |
$ |
(2,439,328) |
|||
|
|
|||||||||
|
CAPITAL SHARE TRANSACTIONS |
|||||||||
|
Proceeds from sale of shares - Class A |
$ |
47,417,556 |
$ |
1,817,688 |
$ |
2,485,097 |
|||
|
Proceeds from sale of shares - Class C |
8,292,796 |
273,560 |
44,532 |
||||||
|
Proceeds from sale of shares - Class I |
21,959,709 |
2,299,876 |
474,307 |
||||||
|
Proceeds from reinvested dividends - Class A |
8,218,352 |
120,152 |
2,257,928 |
||||||
|
Proceeds from reinvested dividends - Class C |
1,142,557 |
11,489 |
11,184 |
||||||
|
Proceeds from reinvested dividends - Class I |
1,260,766 |
130,244 |
36,834 |
||||||
|
Cost of shares redeemed - Class A |
(53,902,467) |
(909,317) |
(6,387,802) |
||||||
|
Cost of shares redeemed - Class C |
(2,982,963) |
(119,695) |
(29,745) |
||||||
|
Cost of shares redeemed - Class I |
(8,098,852) |
(19,151) |
(81,337) |
||||||
|
Net increase (decrease) in net assets resulting from capital share transactions |
$ |
23,307,454 |
$ |
3,604,846 |
$ |
(1,189,002) |
|||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
$ |
26,501,692 |
$ |
3,843,140 |
$ |
2,173,193 |
|||
|
NET ASSETS, BEGINNING OF PERIOD |
123,571,926 |
1,707,439 |
33,342,561 |
||||||
|
NET ASSETS, END OF PERIOD |
$ |
150,073,618 |
$ |
5,550,579 |
$ |
35,515,754 |
|||
|
Accumulated undistributed net investment income |
$ |
125,278 |
$ |
426 |
$ |
25,820 |
|||
|
|
|||||||||
|
|
|||||||||
|
The accompanying notes are an integral part of these financial statements. |
|||||||||
FINANCIAL STATEMENTS
Statements of Changes in Net Assets | For the Year Ended December 31, 2017
|
|
High |
WB/MNA |
||||
|
|
Income |
Stock |
||||
|
|
Fund |
Fund |
||||
|
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS |
||||||
|
Net investment income (loss) |
$ |
1,505,422 |
$ |
845,322 |
||
|
Net realized gain (loss) from investment transactions |
141,040 |
(14,327,931) |
||||
|
Net change in unrealized appreciation (depreciation) of investments |
458,293 |
(46,858,694) |
||||
|
Net increase (decrease) in net assets resulting from operations |
$ |
2,104,755 |
$ |
(60,341,303) |
||
|
|
||||||
|
DISTRIBUTIONS TO SHAREHOLDERS FROM |
||||||
|
Net investment income - Class A |
$ |
(1,198,070) |
$ |
(394,224) |
||
|
Net investment income - Class C |
(213,301) |
0 |
||||
|
Net investment income - Class I |
(94,051) |
(444,234) |
||||
|
Total distributions |
$ |
(1,505,422) |
$ |
(838,458) |
||
|
|
||||||
|
CAPITAL SHARE TRANSACTIONS |
||||||
|
Proceeds from sale of shares - Class A |
$ |
1,939,264 |
$ |
34,155,304 |
||
|
Proceeds from sale of shares - Class C |
933,233 |
4,679,451 |
||||
|
Proceeds from sale of shares - Class I |
2,508,280 |
68,161,442 |
||||
|
Proceeds from reinvested dividends - Class A |
936,421 |
360,487 |
||||
|
Proceeds from reinvested dividends - Class C |
168,562 |
0 |
||||
|
Proceeds from reinvested dividends - Class I |
46,383 |
413,209 |
||||
|
Cost of shares redeemed - Class A |
(4,250,897) |
(232,989,380) |
||||
|
Cost of shares redeemed - Class C |
(1,097,224) |
(14,153,074) |
||||
|
Cost of shares redeemed - Class I |
(624,672) |
(21,301,549) |
||||
|
Net increase (decrease) in net assets resulting from capital share transactions |
$ |
559,350 |
$ |
(160,674,110) |
||
|
|
||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
$ |
1,158,683 |
$ |
(221,853,871) |
||
|
NET ASSETS, BEGINNING OF PERIOD |
31,464,890 |
659,428,892 |
||||
|
NET ASSETS, END OF PERIOD |
$ |
32,623,573 |
$ |
437,575,021 |
||
|
|
||||||
|
Accumulated undistributed net investment income |
$ |
0 |
$ |
235,638 |
||
|
|
||||||
|
|
||||||
|
The accompanying notes are an integral part of these financial statements. |
||||||
FINANCIAL STATEMENTS
Statements of Changes in Net Assets | For the Year Ended December 30, 2016
|
Dividend |
Energized |
Growth |
|||||||
|
Harvest |
Dividend |
& Income |
|||||||
|
Fund |
Fund^ |
Fund |
|||||||
|
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS |
|||||||||
|
Net investment income (loss) |
$ |
2,520,121 |
$ |
47,603 |
$ |
476,169 |
|||
|
Net realized gain (loss) from investment transactions |
1,352,854 |
47,021 |
1,219,205 |
||||||
|
Net change in unrealized appreciation (depreciation) of investments |
9,899,138 |
180,183 |
1,494,053 |
||||||
|
Net increase (decrease) in net assets resulting from operations |
$ |
13,772,113 |
$ |
274,807 |
$ |
3,189,427 |
|||
|
|
|||||||||
|
DISTRIBUTIONS TO SHAREHOLDERS FROM |
|||||||||
|
Net investment income - Class A |
$ |
(2,336,837) |
$ |
(36,917) |
$ |
(470,836) |
|||
|
Net investment income - Class C |
(128,676) |
(2,884) |
(1,364) |
||||||
|
Net investment income - Class I * |
(54,608) |
(7,802) |
(3,691) |
||||||
|
Net realized gain on investments - Class A |
(380,656) |
(27,095) |
(271,638) |
||||||
|
Net realized gain on investments - Class C |
(35,986) |
(2,637) |
(1,505) |
||||||
|
Net realized gain on investments - Class I * |
(19,588) |
(8,748) |
(1,871) |
||||||
|
Total distributions |
$ |
(2,956,351) |
$ |
(86,083) |
$ |
(750,905) |
|||
|
|
|||||||||
|
CAPITAL SHARE TRANSACTIONS |
|||||||||
|
Proceeds from sale of shares - Class A |
$ |
71,646,123 |
$ |
1,578,445 |
$ |
3,181,552 |
|||
|
Proceeds from sale of shares - Class C |
9,708,184 |
100,000 |
72,717 |
||||||
|
Proceeds from sale of shares - Class I* |
5,788,433 |
342,802 |
219,569 |
||||||
|
Proceeds from reinvested dividends - Class A |
2,382,811 |
63,177 |
701,553 |
||||||
|
Proceeds from reinvested dividends - Class C |
147,178 |
638 |
2,870 |
||||||
|
Proceeds from reinvested dividends - Class I * |
66,540 |
16,551 |
5,562 |
||||||
|
Cost of shares redeemed - Class A |
(20,375,800) |
(582,868) |
(9,064,062) |
||||||
|
Cost of shares redeemed - Class C |
(641,667) |
0 |
(72,452) |
||||||
|
Cost of shares redeemed - Class I * |
(82,344) |
(30) |
(15) |
||||||
|
Net increase (decrease) in net assets resulting from capital share transactions |
$ |
68,639,458 |
$ |
1,518,715 |
$ |
(4,952,706) |
|||
|
|
|||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
$ |
79,455,220 |
$ |
1,707,439 |
$ |
(2,514,184) |
|||
|
NET ASSETS, BEGINNING OF PERIOD |
44,116,706 |
0 |
35,856,745 |
||||||
|
NET ASSETS, END OF PERIOD |
$ |
123,571,926 |
$ |
1,707,439 |
$ |
33,342,561 |
|||
|
|
|||||||||
|
Accumulated undistributed net investment income |
$ |
0 |
$ |
0 |
$ |
1,672 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
* All Funds began offering Class I shares August 1, 2016. |
|||||||||
|
|
|||||||||
|
^ Commenced operations on May 2, 2016. |
|||||||||
|
|
|||||||||
|
|
|||||||||
|
The accompanying notes are an integral part of these financial statements. |
|||||||||
FINANCIAL STATEMENTS
Statements of Changes in Net Assets | For the Year Ended December 30, 2016
|
High |
WB/MNA |
|||||
|
Income |
Stock |
|||||
|
Fund |
Fund |
|||||
|
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS |
||||||
|
Net investment income (loss) |
$ |
1,566,635 |
$ |
778,551 |
||
|
Net realized gain (loss) from investment transactions |
(974,804) |
(77,646,904) |
||||
|
Net change in unrealized appreciation (depreciation) of investments |
3,517,886 |
268,699,326 |
||||
|
Net increase (decrease) in net assets resulting from operations |
$ |
4,109,717 |
$ |
191,830,973 |
||
|
|
||||||
|
DISTRIBUTIONS TO SHAREHOLDERS FROM |
||||||
|
Net investment income - Class A |
$ |
(1,310,371) |
$ |
(715,220) |
||
|
Net investment income - Class C |
(245,630) |
0 |
||||
|
Net investment income - Class I * |
(10,634) |
(63,331) |
||||
|
Return of capital - Class A |
0 |
(312,604) |
||||
|
Return of capital - Class I * |
0 |
(27,681) |
||||
|
Total distributions |
$ |
(1,566,635) |
$ |
(1,118,836) |
||
|
|
||||||
|
CAPITAL SHARE TRANSACTIONS |
||||||
|
Proceeds from sale of shares - Class A |
$ |
2,970,740 |
$ |
84,107,881 |
||
|
Proceeds from sale of shares - Class C |
332,568 |
9,718,011 |
||||
|
Proceeds from sale of shares - Class I * |
644,408 |
14,157,242 |
||||
|
Proceeds from reinvested dividends - Class A |
1,025,633 |
935,083 |
||||
|
Proceeds from reinvested dividends - Class C |
183,595 |
0 |
||||
|
Proceeds from reinvested dividends - Class I * |
9,848 |
90,390 |
||||
|
Cost of shares redeemed - Class A |
(4,895,807) |
(157,289,805) |
||||
|
Cost of shares redeemed - Class C |
(1,342,341) |
(10,920,586) |
||||
|
Cost of shares redeemed - Class I * |
(14,204) |
(298,455) |
||||
|
Net increase (decrease) in net assets resulting from capital share transactions |
$ |
(1,085,560) |
$ |
(59,500,239) |
||
|
|
||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
$ |
1,457,522 |
$ |
131,211,898 |
||
|
NET ASSETS, BEGINNING OF PERIOD |
30,007,368 |
528,216,994 |
||||
|
NET ASSETS, END OF PERIOD |
$ |
31,464,890 |
$ |
659,428,892 |
||
|
Accumulated undistributed net investment income |
$ |
0 |
$ |
0 |
||
|
|
|
|
|
|
|
|
|
*All Funds began offering Class I shares on August 1, 2016. |
||||||
|
|
||||||
|
|
||||||
|
The accompanying notes are an integral part of these financial statements. |
||||||
NOTES TO FINANCIAL STATEMENTS
NOTE 1: Organization
The Integrity Funds (the “Trust”) was organized as a Delaware statutory trust on October 31, 1997 and commenced operations on October 31, 1997. The Trust is registered under the Investment Company Act of 1940 as an open-end management investment company, consisting of five series (the “Funds”).
Integrity Dividend Harvest Fund (the “Dividend Harvest Fund”), a non-diversified fund, seeks high current income with long term appreciation as a secondary objective. Integrity Energized Dividend Fund (the “Energized Dividend Fund”), a non-diversified fund, seeks long-term appreciation while providing high current income. Integrity Growth & Income Fund (the “Growth & Income Fund”), a diversified fund, seeks to provide long-term growth of capital with dividend income as a secondary objective. Integrity High Income Fund (the “High Income Fund”), a non-diversified fund, seeks a high level of current income with capital appreciation as a secondary objective. Williston Basin/Mid-North America Stock Fund (the “WB/MNA Stock Fund”), a diversified fund, seeks to provide long-term growth through capital appreciation.
The Board of Trustees approved, on February 2, 2018, a change to the Funds’ fiscal year-end from December 31 to July 31, therefore, this report is for the seven months ended July 31, 2018.
Each Fund in the Trust currently offers Class A, C, and I shares. The Class A shares of Dividend Harvest Fund, Energized Dividend Fund, Growth & Income Fund, High Income Fund, and WB/MNA Stock Fund are sold with an initial sales charge of 5.00%, 5.00%, 5.00%, 4.25%, and 5.00%, respectively, and a distribution fee of up to 0.25% on an annual basis. Class C shares are sold without a sales charge and are subject to a distribution fee of up to 1.00% on an annual basis. Class I shares are sold without a sales charge or distribution fee. The three classes of shares represent interest in each Fund’s same portfolio of investments, have the same rights, and are generally identical in all respects except that each class bears its separate distribution and certain other class expenses and has exclusive voting rights with respect to any matter on which a separate vote of any class is required.
Each Fund is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services – Investment Companies.
NOTE 2: Summary of Significant Accounting Policies
Investment security valuation—Securities for which market quotations are available are valued as follows: (a) Listed securities are valued at the closing price obtained from the respective primary exchange on which the security is listed or, if there were no sales on that day, at its last reported current bid price; (b) Unlisted securities are valued at the last current bid price obtained from the National Association of Securities Dealers’ Automated Quotation System. The Funds’ administrative services agent, Integrity Fund Services, LLC (“Integrity Fund Services” or “IFS”) obtains all of these prices from services that collect and disseminate such market prices. Prices provided by an independent pricing service may be determined without exclusive reliance on quoted prices and may take into account appropriate factors such as: institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. In the absence of an ascertainable market value, assets are valued at their fair value as determined by IFS using methods and procedures reviewed and approved by the Board of Trustees. Refer to Note 3 for further disclosures related to the inputs used to value the Funds’ investments. Shares of a registered investment company, including money market funds, that are not traded on an exchange are valued at the investment company’s net asset value per share.
When-issued securities—The Funds may purchase securities on a when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The values of the securities purchased on a when-issued basis are identified as such in each Fund’s Schedule of Investments. With respect to purchase commitments, the Fund identifies securities as segregated in its custodial records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities, if the counterparty does not perform under the contract’s terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Contingent deferred sales charge—Class A shares of $1 million or more may be subject to a 1.00% contingent deferred sales charge (“CDSC”) if redeemed within 24 months of purchase (excluding shares purchased with reinvested dividends and/or distributions). Investments in Class C shares (in any amount) may be subject to a 1.00% CDSC if redeemed within 12 months of purchase.
Federal and state income taxes—Each Fund is a separate taxpayer for federal income tax purposes. Each Fund’s policy is to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of its net investment income and any net realized gain on investments to its shareholders; therefore, no provision for income taxes is required.
As of and during the seven months ended July 31, 2018, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the seven months ended, the Funds did not incur any interest or penalties.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years, which include the current and prior three tax years, are open for examination by taxing authorities. Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Premiums and discounts—Premiums and discounts on debt securities are accreted and amortized using the effective yield method over the lives of the respective securities for financial statement purposes.
Cash and cash equivalents—The Funds consider investments in an FDIC insured interest bearing savings account to be cash. The Fund maintains cash balances, which, at times, may exceed federally insured limits. The Fund maintains these balances with a high quality financial institution.
Security transactions, investment income, expenses and distributions—Income and expenses are recorded on the accrual basis. Investment transactions are accounted for on the trade date. Realized gains and losses are reported on the specific identification basis. Interest income and estimated expenses are accrued daily. Dividend income is recognized on the ex-dividend date. Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the applicable countries’ tax rules and regulations. The Dividend Harvest Fund, Energized Dividend Fund, Growth & Income Fund, and WB/MNA Stock Fund will declare and pay dividends from net investment income at least annually. The High Income Fund declares dividends from net investment income daily and pays such dividends monthly. Dividends are reinvested in additional shares of the Funds at net asset value or paid in cash. Capital gains, when available, are distributed at least annually. Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with federal income tax regulations and may differ from net investment income and realized gains determined in accordance with accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for capital loss carryforwards and losses due to wash sales. In addition, other amounts have been reclassified within the composition of net assets to more appropriately conform financial accounting to tax basis treatment.
Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid-in capital. Temporary book and tax basis differences will reverse in a subsequent period.
Use of estimates—The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Common expenses—Common expenses of the Trust are allocated among the Funds within the Trust based on relative net assets of each Fund or the nature of the services performed and the relative applicability to each Fund.
Multiple class allocations—The High Income Fund simultaneously uses the settled shares method to allocate income and fund-wide expenses and uses the relative net assets method to allocate gains and losses. Dividend Harvest Fund, Energized Dividend Fund, Growth & Income Fund, and WB/MNA Stock Fund use the relative net assets method to allocate income, fund-wide expenses, gains and losses. Class-specific expenses, distribution fees, and any other items that are specifically attributable to a particular class are charged directly to such class.
Illiquid securities—A security may be considered to be illiquid if it has a limited trading market. Securities are generally considered to be liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the security is valued by the Funds. These securities are valued at fair value as described above. Each Fund intends to hold no more than 15% of its net assets in illiquid securities. Of the illiquid securities listed on the Schedule of Investments, the following securities are considered to be restricted as of July 31, 2018:
|
High Income Fund |
Shares/principal |
Dates Acquired |
Cost Basis |
Fair Value |
|
VICI Properties, Inc - Common Stock |
20,727 |
10/9/17 |
229,642 |
421,794 |
|
21st Century Oncology Inc - Common Stock |
135 |
2/22/18 |
66,476 |
5,400 |
|
RTSX - Convertible Preferred Stock |
207 |
1/12/18 |
14,025 |
56,925 |
|
RTSX - Corporate Bond |
39,239 |
1/12/18 |
39,240 |
34,138 |
NOTE 3: Fair Value Measurements
Various inputs are used in determining the value of the Funds' investments. These inputs are summarized in three broad levels: Level 1 inputs are based on quoted prices in active markets for identical securities. Level 2 inputs are based on significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 inputs are based on significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments). The following is a summary of the inputs used to value the Funds’ investments as of July 31, 2018:
|
Dividend Harvest Fund |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||
|
Common Stocks |
$ |
129,732,809 |
$ |
0 |
$ |
0 |
$ |
129,732,809 |
||||
|
Total |
$ |
129,732,809 |
$ |
0 |
$ |
0 |
$ |
129,732,809 |
||||
|
|
||||||||||||
|
Energized Dividend Fund |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||
|
Common Stocks |
$ |
7,235,146 |
$ |
0 |
$ |
0 |
$ |
7,235,146 |
||||
|
Total |
$ |
7,235,146 |
$ |
0 |
$ |
0 |
$ |
7,235,146 |
||||
|
|
||||||||||||
|
Growth & Income Fund |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||
|
Common Stocks |
$ |
35,230,179 |
$ |
0 |
$ |
0 |
$ |
35,230,179 |
||||
|
Total |
$ |
35,230,179 |
$ |
0 |
$ |
0 |
$ |
35,230,179 |
||||
|
|
||||||||||||
|
High Income Fund |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||
|
Common Stocks |
$ |
504,138 |
$ |
0 |
$ |
223,144 |
$ |
727,282 |
||||
|
Preferred Stock |
0 |
0 |
56,925 |
56,925 |
||||||||
|
Corporate Bonds |
0 |
28,161,007 |
0 |
28,161,007 |
||||||||
|
Total |
$ |
504,138 |
$ |
28,161,007 |
$ |
280,069 |
$ |
28,945,214 |
||||
|
|
||||||||||||
|
WB/MNA Stock Fund |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||
|
Common Stocks |
$ |
354,224,700 |
$ |
0 |
$ |
0 |
$ |
354,224,700 |
||||
|
Total |
$ |
354,224,700 |
$ |
0 |
$ |
0 |
$ |
354,224,700 |
||||
Please refer to the Schedules of Investments for sector classification. The Funds consider transfers into or out of Level 1 and Level 2 as of the end of the reporting period, which there were none during the reporting period. The Funds did not hold any derivative instruments at any time during the seven month period ended July 31, 2018.
A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments, is presented when a Fund has a significant amount of Level 3 investments at the beginning and/or end of the period in relation to net assets.
The changes of the fair value of investments during the seven month period ended July 31, 2018, for which the Funds have used Level 3 inputs to determine the fair value are as follow:
|
Balance as |
Transfers |
Change in unrealized |
Balance as |
||
|
High Income Fund |
of 12/31/17 |
Purchases |
into Level 3 |
appreciation |
of 7/31/18 |
|
Common Stock |
$140,130 |
$17,025 |
$48,052 |
$17,937 |
$223,144 |
|
Preferred Stock |
$0 |
$52,319 |
$0 |
$4,606 |
$56,925 |
|
Impact to |
|||||
|
Valuation |
|||||
|
Fair Value |
From Input |
||||
|
Asset Class |
at 7/31/18 |
Valuation Technique |
Inputs |
Multiple |
Increases |
|
Common Stock |
$156,492 |
Market Comparable Companies |
EBITDA Multiple |
7.0x |
Increase |
|
Common Stock |
$5,400 |
Market Comparable Transaction |
Broker Quote |
$40.00 |
Increase |
|
Common Stock |
$50,685 |
Market Comparable Transaction |
Transaction Price |
$19.25 |
Increase |
|
Common Stock |
$10,567 |
Terms of Conversion |
Conversion Price |
$8.23 |
Increase |
|
Total |
$223,144 |
|
|
|
|
|
Convertible |
$56,925 |
Market Comparable Transaction |
Broker Quote |
$275.00 |
Increase |
Unobservable inputs used in the fair value measurement of the Funds’ investments are listed above. Significant changes in any of the unobservable inputs may significantly impact the fair value measurement. Significant increases (decreases) in working capital may increase (decrease) the fair value measurement.
NOTE 4: Investment Transactions
Purchases and sales of investment securities (excluding short-term securities) for the seven month period ended July 31, 2018, were as follows:
|
Dividend |
Energized |
Growth & |
High |
WB/MNA |
||||||
|
Harvest Fund |
Dividend Fund |
Income Fund |
Income Fund |
Stock Fund |
||||||
|
Purchases |
$31,368,083 |
$2,716,101 |
$2,068,617 |
$4,874,358 |
$160,778,970 |
|||||
|
Sales |
$44,012,666 |
$794,886 |
$3,403,258 |
$5,696,625 |
$235,811,486 |
NOTE 5: Capital Share Transactions
Transactions in capital shares were as follows:
|
Period Ended 7/31/18: |
Dividend |
Energized |
Growth & |
High |
WB/MNA |
|||||
|
|
Harvest |
Dividend |
Income |
Income |
Stock |
|||||
|
Class A |
Fund |
Fund |
Fund |
Fund |
Fund |
|||||
|
Shares sold |
615,954 |
104,610 |
25,057 |
196,232 |
1,200,919 |
|||||
|
Shares issued from reinvestments |
108,521 |
4,560 |
0 |
75,478 |
0 |
|||||
|
Shares redeemed |
(1,639,522) |
(39,373) |
(54,421) |
(282,308) |
(12,655,249) |
|||||
|
Net increase (decrease) |
(915,047) |
69,797 |
(29,364) |
(10,598) |
(11,454,330) |
|||||
|
|
||||||||||
|
Class C |
||||||||||
|
Shares sold |
105,864 |
6,147 |
339 |
21,759 |
219,137 |
|||||
|
Shares issued from reinvestments |
12,148 |
510 |
0 |
12,665 |
0 |
|||||
|
Shares redeemed |
(301,274) |
(544) |
(1,096) |
(97,742) |
(1,386,296) |
|||||
|
Net increase (decrease) |
(183,262) |
6,113 |
(757) |
(63,318) |
(1,167,159) |
|||||
|
|
||||||||||
|
Class I |
||||||||||
|
Shares sold |
616,152 |
56,713 |
3,729 |
103,377 |
2,734,738 |
|||||
|
Shares issued from reinvestments |
17,330 |
5,976 |
0 |
5,395 |
0 |
|||||
|
Shares redeemed |
(567,341) |
(14,100) |
(3,560) |
(88,167) |
(5,828,207) |
|||||
|
Net increase (decrease) |
66,141 |
48,589 |
169 |
20,605 |
(3,093,469) |
|||||
|
|
||||||||||
|
Year Ended 12/31/17: |
Dividend |
Energized |
Growth & |
High |
WB/MNA |
|||||
|
|
Harvest |
Dividend |
Income |
Income |
Stock |
|||||
|
Class A |
Fund |
Fund |
Fund |
Fund |
Fund |
|||||
|
Shares sold |
3,235,571 |
152,980 |
46,691 |
248,568 |
6,270,079 |
|||||
|
Shares issued from reinvestments |
556,988 |
10,014 |
42,102 |
120,018 |
65,782 |
|||||
|
Shares redeemed |
(3,669,437) |
(81,700) |
(122,899) |
(545,362) |
(44,411,374) |
|||||
|
Net increase (decrease) |
123,122 |
81,294 |
(34,106) |
(176,776) |
(38,075,513) |
|||||
|
|
||||||||||
|
Class C |
||||||||||
|
Shares sold |
570,659 |
22,657 |
832 |
119,496 |
874,007 |
|||||
|
Shares issued from reinvestments |
77,901 |
938 |
209 |
21,546 |
0 |
|||||
|
Shares redeemed |
(203,612) |
(10,088) |
(583) |
(140,622) |
(2,751,346) |
|||||
|
Net increase (decrease) |
444,948 |
13,507 |
458 |
420 |
(1,877,339) |
|||||
|
|
||||||||||
|
Class I |
||||||||||
|
Shares sold |
1,497,044 |
192,506 |
9,084 |
322,665 |
12,629,137 |
|||||
|
Shares issued from reinvestments |
85,332 |
10,617 |
687 |
5,942 |
75,541 |
|||||
|
Shares redeemed |
(547,196) |
(1,607) |
(1,574) |
(80,068) |
(4,141,731) |
|||||
|
Net increase (decrease) |
1,035,180 |
201,516 |
8,197 |
248,539 |
8,562,947 |
|
Year Ended 12/30/16: |
Dividend |
Energized |
Growth & |
High |
WB/MNA |
|||||
|
|
Harvest |
Dividend |
Income |
Income |
Stock |
|||||
|
Class A |
Fund |
Fund |
Fund |
Fund |
Fund |
|||||
|
Shares sold |
5,262,672 |
155,113 |
69,369 |
400,852 |
17,719,326 |
|||||
|
Shares issued from reinvestments |
170,305 |
5,686 |
14,459 |
139,196 |
157,160 |
|||||
|
Shares redeemed |
(1,496,270) |
(55,424) |
(194,834) |
(668,318) |
(31,657,888) |
|||||
|
Net increase (decrease) |
3,936,707 |
105,375 |
(111,006) |
(128,270) |
(13,781,402) |
|||||
|
|
||||||||||
|
Class C |
||||||||||
|
Shares sold |
710,008 |
10,000 |
1,567 |
44,168 |
2,111,198 |
|||||
|
Shares issued from reinvestments |
10,453 |
62 |
59 |
24,895 |
0 |
|||||
|
Shares redeemed |
(48,412) |
0 |
(1,608) |
(183,873) |
(2,184,967) |
|||||
|
Net increase (decrease) |
672,049 |
10,062 |
18 |
(114,810) |
(73,769) |
|||||
|
|
||||||||||
|
Class I |
||||||||||
|
Shares sold |
412,967 |
33,313 |
4,591 |
85,189 |
2,552,259 |
|||||
|
Shares issued from reinvestments |
4,647 |
1,464 |
115 |
1,291 |
15,217 |
|||||
|
Shares redeemed |
(5,835) |
(3) |
0 |
(1,856) |
(51,418) |
|||||
|
Net increase (decrease) |
411,779 |
34,774 |
4,706 |
84,624 |
2,516,058 |
NOTE 6: Income Tax Information
At July 31, 2018, the unrealized appreciation (depreciation) based on the cost of investments for federal income tax purposes was as follows:
|
Dividend |
Energized |
Growth & |
High |
WB/MNA |
||||||||||
|
Harvest |
Dividend |
Income |
Income |
Stock |
||||||||||
|
Fund |
Fund |
Fund |
Fund |
Fund |
||||||||||
|
Investments at cost |
$ |
123,930,546 |
$ |
6,738,426 |
$ |
25,837,045 |
$ |
29,298,112 |
$ |
330,210,118 |
||||
|
Unrealized appreciation |
$ |
9,465,487 |
$ |
566,776 |
$ |
10,007,199 |
$ |
753,850 |
$ |
44,019,657 |
||||
|
Unrealized depreciation |
(3,663,224) |
(70,056) |
(614,065) |
(1,106,748) |
(20,005,075) |
|||||||||
|
Net unrealized appreciation* |
$ |
5,802,263 |
$ |
496,720 |
$ |
9,393,134 |
$ |
(352,898) |
$ |
24,014,582 |
||||
|
*Differences between financial reporting-basis and tax-basis unrealized appreciation/ (depreciation) are due to differing treatment of wash sales. |
||||||||||||||
The tax character of distributions paid was as follows:
|
Dividend |
Energized |
Growth & |
High |
WB/MNA |
||||||||||
|
Harvest |
Dividend |
Income |
Income |
Stock |
||||||||||
|
Period ended 7/31/18: |
Fund |
Fund |
Fund |
Fund |
Fund |
|||||||||
|
Ordinary Income |
$ |
2,146,466 |
$ |
138,431 |
$ |
0 |
$ |
923,818 |
$ |
0 |
||||
|
Return of Capital |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
||||
|
|
||||||||||||||
|
Year ended 12/31/17: |
||||||||||||||
|
Ordinary Income |
$ |
6,843,837 |
$ |
227,037 |
$ |
597,288 |
$ |
1,505,422 |
$ |
609,684 |
||||
|
Capital Gain |
5,030,545 |
43,587 |
1,816,724 |
0 |
0 |
|||||||||
|
Return of Capital |
$ |
125,278 |
$ |
0 |
$ |
25,316 |
$ |
0 |
$ |
228,774 |
||||
|
|
||||||||||||||
|
Year ended 12/30/16: |
||||||||||||||
|
Ordinary Income |
$ |
2,956,351 |
$ |
86,083 |
$ |
475,891 |
$ |
1,566,635 |
$ |
778,551 |
||||
|
Capital Gain |
0 |
0 |
275,014 |
0 |
0 |
|||||||||
|
Return of Capital |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
0 |
$ |
340,285 |
||||
As of July 31, 2018, the components of accumulated earnings/(deficit) on a tax basis were as follows:
|
Dividend |
Energized |
Growth & |
High |
WB/MNA |
||||||||||
|
Harvest |
Dividend |
Income |
Income |
Stock |
||||||||||
|
Fund |
Fund |
Fund |
Fund |
Fund |
||||||||||
|
Undistributed ordinary income |
$ |
846,110 |
$ |
89,520 |
$ |
251,309 |
$ |
28,553 |
$ |
458,756 |
||||
|
Undistributed capital gain |
4,156,059 |
63,597 |
1,263,604 |
0 |
0 |
|||||||||
|
Accumulated capital and other losses |
0 |
0 |
0 |
(869,126) |
(128,845,100) |
|||||||||
|
Unrealized appreciation/(depreciation)* |
5,802,263 |
496,720 |
9,393,134 |
(352,898) |
24,014,582 |
|||||||||
|
Total accumulated earnings/(deficit) |
$ |
10,804,432 |
$ |
649,837 |
$ |
10,908,047 |
$ |
(1,193,471) |
$ |
(104,371,762) |
||||
|
*Differences between financial reporting-basis and tax-basis unrealized appreciation/(depreciation) are due to differing treatment of wash sales. |
||||||||||||||
The Funds’ capital loss carryforward amounts as of July 31, 2018, are as follows:
|
|
|
High Income Fund |
|
WB/MNA Stock Fund |
|
Non-expiring short-term losses |
|
$0 |
|
$72,687,968 |
|
Non-expiring long-term losses |
|
869,126 |
|
56,157,132 |
|
Total Capital Loss Carryforwards |
|
$869,126 |
|
$128,845,100 |
For the period ended July 31, 2018, the High Income Fund had expired capital loss carryforwards of $794,228, which was reclassified to paid in capital. For the period ended July 31, 2018, High Income Fund and WB/MNA Stock Fund utilized capital loss carryforwards of $100,234 and $35,041,404, respectively. For the period ended July 31, 2018, WB/MNA Stock Fund reclassified $29,526 of net investment income to net realized loss on investment.
NOTE 7: Investment Advisory Fees and Other Transactions with Affiliates
Viking Fund Management (“VFM”), the Funds’ investment adviser; Integrity Funds Distributor, LLC (“Integrity Funds Distributor” or “IFD”), the Funds’ underwriter and distributor; and Integrity Fund Services, the Funds’ transfer, accounting, and administrative services agent; are subsidiaries of Corridor Investors, LLC (“Corridor Investors” or “Corridor”), the Funds’ sponsor. For Integrity High Income Fund, JPMIM is the sub-adviser. A Trustee of the Funds is also a Governor of Corridor.
VFM provides investment advisory and management services to the Funds. The Investment Advisory Agreement (the “Advisory Agreement”) provides for fees to be computed at an annual rate of each Fund’s average daily net assets. VFM has also contractually agreed to waive its management fee and to reimburse expenses, other than extraordinary or non-recurring expenses, taxes, brokerage fees, commissions and acquired fund fees and expenses, so that the net annual operating expenses do not exceed a certain rate. After April 29, 2019 (April 30, 2019 for High Income Fund), the expense limitations may be terminated or revised.
|
|
|
|
Contractual Waiver % |
||||
|
|
Advisory Fee % |
|
Class A |
|
Class C |
|
Class I |
|
Dividend Harvest Fund |
0.75% |
|
0.95% |
|
1.70% |
|
0.70% |
|
Energized Dividend Fund |
0.75% |
|
1.05% |
|
1.80% |
|
0.80% |
|
Growth & Income Fund |
1.00% |
|
1.25% |
|
2.00% |
|
1.00% |
|
High Income Fund |
0.85% |
|
0.89% |
|
1.64% |
|
0.64% |
|
WB/MNA Stock Fund |
0.50% |
|
1.50% |
|
2.00% |
|
1.00% |
VFM and affiliated service providers may also voluntarily waive fees or reimburse expenses not required under the advisory or other contracts from time to time. Accordingly, after voluntary and contractual fee waivers and reimbursements, the Energized Dividend Fund’s actual total expenses for Class A, C, and I were 0.50%, 1.25%, and 0.25%, respectively, for the seven months ended July 31, 2018 and 0.35%, 1.10%, and 0.10%, respectively, for the year ended December 31, 2017, of average daily net assets. VFM and the affiliated service providers have agreed to voluntarily waive the affiliated service provider’s fees before voluntarily or contractually waiving VFM’s management fee. There are no recoupment provisions in place for waived/reimbursed fees. An expense limitation lowers expense ratios and increases returns to investors. Certain Officers of the Funds are also Officers and Governors of VFM.
|
Seven Months Ended 7/31/18 |
Payable 7/31/18 |
|||||||
|
Advisory Fees* |
Advisory Fees Waived |
Advisory Fees* |
||||||
|
Dividend Harvest Fund |
$ |
137,793 |
$ |
466,834 |
$ |
15,206 |
||
|
Energized Dividend Fund |
$ |
0 |
$ |
27,128^ |
$ |
0+ |
||
|
Growth & Income Fund |
$ |
66,884 |
$ |
139,533 |
$ |
9,802 |
||
|
High Income Fund |
$ |
2,473 |
$ |
153,162 |
$ |
351 |
||
|
WB/MNA Stock Fund |
$ |
1,118,874 |
$ |
0 |
$ |
149,885 |
||
|
* After waivers and
reimbursements, if any. |
||||||||
|
Year Ended 12/31/17 |
||||
|
Advisory Fees* |
Advisory Fees Waived |
|||
|
Dividend Harvest Fund |
$ |
391,554 |
$ |
723,473 |
|
Energized Dividend Fund |
$ |
0 |
$ |
17,321^ |
|
Growth & Income Fund |
$ |
127,804 |
$ |
209,587 |
|
High Income Fund |
$ |
105,933 |
$ |
168,374 |
|
WB/MNA Stock Fund |
$ |
2,569,616 |
$ |
0 |
|
*After
waivers and reimbursements, if any. |
||||
IFD serves as the principal underwriter and distributor for the Funds and receives sales charges deducted from Fund share sales proceeds and CDSC from applicable Fund share redemptions. Also, the Funds have adopted a distribution plan for each class of shares as allowed by Rule 12b-1 of the 1940 Act. Distribution plans permit the Funds to reimburse its principal underwriter for costs related to selling shares of the Funds and for various other services. These costs, which consist primarily of commissions and service fees to broker-dealers who sell shares of the Funds, are paid by shareholders through expenses called “Distribution Plan expenses.” The Funds currently pay an annual distribution fee and/or service fee of up to 0.25% (0.50% for WB/MNA Stock Fund) for Class A and 1.00% for Class C of the average daily net assets. Class I shares do not have a 12b-1 plan in place. Certain Officers of the Funds are also Officers and Governors of IFD.
|
Seven Months Ended 7/31/18 |
Payable 7/31/18 |
||||||||||
|
Sales Charges |
CDSC |
Distribution Fees |
Distribution Fees |
||||||||
|
Dividend Harvest Fund - A |
$ |
163,910 |
$ |
0 |
$ |
148,099 |
$ |
20,182 |
|||
|
Dividend Harvest Fund - C |
$ |
0 |
$ |
4,956 |
$ |
89,960 |
$ |
11,967 |
|||
|
Energized Dividend Fund - A |
$ |
33,005 |
$ |
0 |
$ |
3,901 |
$ |
659 |
|||
|
Energized Dividend Fund - C |
$ |
0 |
$ |
57 |
$ |
1,956 |
$ |
316 |
|||
|
Growth & Income Fund - A |
$ |
7,414 |
$ |
0 |
$ |
50,361 |
$ |
7,248 |
|||
|
Growth & Income Fund – C* |
$ |
0 |
$ |
0 |
$ |
69 |
$ |
0 |
|||
|
High Income Fund - A |
$ |
31,295 |
$ |
0 |
$ |
34,686 |
$ |
5,001 |
|||
|
High Income Fund - C |
$ |
0 |
$ |
435 |
$ |
29,371 |
$ |
4,087 |
|||
|
WB/MNA Stock Fund - A |
$ |
160,706 |
$ |
69 |
$ |
882,626 |
$ |
119,504 |
|||
|
WB/MNA Stock Fund - C |
$ |
0 |
$ |
3,211 |
$ |
194,701 |
$ |
26,488 |
|||
|
*Due to regulatory limitation, no distribution fees were accrued after January 10, 2018. |
|||||||||||
|
Year Ended 12/31/17 |
||||||
|
Sales |
Distribution |
|||||
|
Charges |
CDSC |
Fees* |
||||
|
Dividend Harvest Fund - A |
$ |
938,590 |
$ |
0 |
$ |
295,833 |
|
Dividend Harvest Fund - C |
$ |
0 |
$ |
9,347 |
$ |
150,779 |
|
Energized Dividend Fund - A |
$ |
45,905 |
$ |
0 |
$ |
3,343 |
|
Energized Dividend Fund - C |
$ |
0 |
$ |
0 |
$ |
1,306 |
|
Growth & Income Fund - A |
$ |
27,722 |
$ |
0 |
$ |
82,782 |
|
Growth & Income Fund - C |
$ |
0 |
$ |
0 |
$ |
1,777 |
|
High Income Fund - A |
$ |
32,708 |
$ |
0 |
$ |
62,782 |
|
High Income Fund - C |
$ |
0 |
$ |
42 |
$ |
53,004 |
|
WB/MNA Stock Fund - A |
$ |
672,203 |
$ |
244 |
$ |
2,105,702 |
|
WB/MNA Stock Fund - C |
$ |
0 |
$ |
10,834 |
$ |
416,202 |
IFS acts as the transfer agent for High Income Fund at a monthly variable fee equal to 0.12% on the first $0 to $200 million and at a lower rate in excess of $200 million of the Fund’s average daily net assets on an annual basis and an additional fee of $500 per month for each additional share class plus reimbursement of out-of-pocket expenses and sub-transfer agent out-of-pocket expenses. IFS acts as the transfer agent for Dividend Harvest Fund, Energized Dividend Fund, Growth & Income Fund, and WB/MNA Stock Fund at a monthly variable fee equal to 0.18% on the first $0 to $200 million, 0.15% on the next $200 to $700 million and at a lower rate in excess of $700 million of the Funds’ average daily net assets on an annual basis plus reimbursement of out-of-pocket expenses and sub-transfer agent out-of-pocket expenses. Sub-transfer agent out-of-pocket expenses are included in the transfer agent fees below and in the transfer agent out-of-pocket balance on the Statements of Operations.
IFS also acts as the Funds’ administrative services agent for a monthly fee equal to the sum of a fixed fee of $2,000 and a variable fee equal to 0.14% on the first $0 to $200 million, 0.13% on the next $200 to $700 million and at a lower rate in excess of $700 million of the Funds’ average daily net assets on an annual basis plus reimbursement of out-of-pocket expenses and an additional fee of $1,000 per month for each additional share class. Certain Officers of the Funds are also Officers and Governors of IFS.
|
Seven Months Ended 7/31/18 |
Payable 7/31/18 |
||||||||||
|
Transfer |
Admin. |
Transfer |
Admin. |
||||||||
|
Agency Fees |
Service Fees |
Agency Fees |
Service Fees |
||||||||
|
Dividend Harvest Fund |
$ |
184,565 |
$ |
140,956 |
$ |
31,648 |
$ |
19,582 |
|||
|
Energized Dividend Fund |
$ |
14,521 |
$ |
33,156 |
$ |
2,225 |
$ |
4,906 |
|||
|
Growth & Income Fund |
$ |
50,910 |
$ |
56,991 |
$ |
10,188 |
$ |
8,233 |
|||
|
High Income Fund |
$ |
32,082 |
$ |
53,726 |
$ |
5,811 |
$ |
7,763 |
|||
|
WB/MNA Stock Fund |
$ |
467,278 |
$ |
330,726 |
$ |
153,043 |
$ |
44,745 |
|||
|
Year Ended 12/31/17 |
||||||||
|
Transfer |
Transfer |
Admin. |
Admin. |
|||||
|
Agency |
Agency |
Service |
Service |
|||||
|
Fees* |
Fees Waived |
Fees* |
Fees Waived |
|||||
|
Dividend Harvest Fund |
$ |
262,888 |
$ |
42,658 |
$ |
216,772 |
$ |
39,344 |
|
Energized Dividend Fund |
$ |
11,394 |
$ |
5,026 |
$ |
34,633 |
$ |
16,468 |
|
Growth & Income Fund |
$ |
75,701 |
$ |
11,098 |
$ |
80,673 |
$ |
14,539 |
|
High Income Fund |
$ |
49,311 |
$ |
7,203 |
$ |
79,861 |
$ |
13,307 |
|
WB/MNA Stock Fund |
$ |
1,139,910 |
$ |
0 |
$ |
736,068 |
$ |
0 |
|
*After waivers and reimbursements, if any. |
||||||||
NOTE 8: Principal Risks
The High Income Fund may be invested in lower-rated debt securities that have a higher risk of default or loss of value since these securities may be sensitive to economic changes, political changes or adverse developments specific to the issuer.
The WB/MNA Stock Fund invests significantly in relatively few sectors, primarily the energy sector, and has more exposure to the price movement of this sector than funds that diversify their investments among many sectors.
NOTE 9: Subsequent Events
The Funds are required to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the Statements of Assets and Liabilities. For non-recognized subsequent events that must be disclosed to keep the financial statements from being misleading, the Funds are required to disclose the nature of the event as well as an estimate of its financial effect, or a statement that such an estimate cannot be made. Management has evaluated the impact of all subsequent events on the Funds through the issuance date of these financial statements and has noted no such events requiring disclosure.
INTEGRITY DIVIDEND HARVEST FUND CLASS A
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
|
Seven |
|||||||||||||||||
|
Months |
Year |
Year |
Year |
Year |
Year |
||||||||||||
|
Ended |
Ended |
Ended |
Ended |
Ended |
Ended |
||||||||||||
|
7/31/18 |
12/31/17 |
12/30/16 |
12/31/15 |
12/31/14 |
12/31/13 |
||||||||||||
|
NET ASSET VALUE, BEGINNING OF PERIOD |
$ |
14.68 |
$ |
14.33 |
$ |
12.23 |
$ |
12.64 |
$ |
12.05 |
$ |
10.03 |
|||||
|
|
|||||||||||||||||
|
Income (loss) from investment operations: |
|||||||||||||||||
|
Net investment income (loss) |
$ |
0.24 |
$ |
0.41 |
$ |
0.39 |
$ |
0.37 |
$ |
0.36 |
$ |
0.34 |
|||||
|
Net realized and unrealized gain (loss) on investments1 |
(0.45) |
1.16 |
2.15 |
(0.24) |
1.01 |
2.03 |
|||||||||||
|
Total from investment operations |
$ |
(0.21) |
$ |
1.57 |
$ |
2.54 |
$ |
0.13 |
$ |
1.37 |
$ |
2.37 |
|||||
|
|
|||||||||||||||||
|
Less Distributions: |
|||||||||||||||||
|
Dividends from net investment income |
$ |
(0.23) |
$ |
(0.41) |
$ |
(0.39) |
$ |
(0.37) |
$ |
(0.36) |
$ |
(0.34) |
|||||
|
Distributions from net realized gains |
0.00 |
(0.81) |
(0.05) |
(0.17) |
(0.42) |
(0.01) |
|||||||||||
|
Total distributions |
$ |
(0.23) |
$ |
(1.22) |
$ |
(0.44) |
$ |
(0.54) |
$ |
(0.78) |
$ |
(0.35) |
|||||
|
|
|||||||||||||||||
|
NET ASSET VALUE, END OF PERIOD |
$ |
14.24 |
$ |
14.68 |
$ |
14.33 |
$ |
12.23 |
$ |
12.64 |
$ |
12.05 |
|||||
|
|
|||||||||||||||||
|
Total Return (excludes any applicable sales charge) |
(1.39%)# |
11.10% |
20.94% |
1.12% |
11.42% |
23.88% |
|||||||||||
|
|
|||||||||||||||||
|
RATIOS/SUPPLEMENTAL DATA |
|||||||||||||||||
|
Net assets, end of period (in thousands) |
$95,340 |
$111,696 |
$107,275 |
$43,425 |
$29,645 |
$19,581 |
|||||||||||
|
Ratio of expenses to average net assets after waivers2 |
0.95%^ |
0.95% |
0.95% |
0.85% |
0.60% |
0.45% |
|||||||||||
|
Ratio of expenses to average net assets before waivers |
1.53%^ |
1.49% |
1.55% |
1.58% |
1.59% |
1.76% |
|||||||||||
|
Ratio of net investment income to average net assets2 |
2.92%^ |
2.88% |
3.26% |
3.18% |
2.98% |
3.29% |
|||||||||||
|
Portfolio turnover rate |
23.05%# |
44.89% |
25.56% |
38.38% |
32.99% |
26.44% |
|||||||||||
|
1 |
Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
|
2 |
This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
^ |
Annualized |
|
# |
Not Annualized. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY DIVIDEND HARVEST FUND CLASS C
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
|
Seven |
Period |
||||||||||
|
Months |
Year |
Year |
From |
||||||||
|
Ended |
Ended |
Ended |
8/3/15* to |
||||||||
|
7/31/18 |
12/31/17 |
12/30/16 |
12/31/15 |
||||||||
|
NET ASSET VALUE, BEGINNING OF PERIOD |
$ |
14.59 |
$ |
14.26 |
$ |
12.20 |
$ |
12.54 |
|||
|
|
|||||||||||
|
Income (loss) from investment operations: |
|||||||||||
|
Net investment income (loss) |
$ |
0.17 |
$ |
0.31 |
$ |
0.31 |
$ |
0.18 |
|||
|
Net realized and unrealized gain (loss) on investments1 |
(0.44) |
1.14 |
2.11 |
(0.17) |
|||||||
|
Total from investment operations |
$ |
(0.27) |
$ |
1.45 |
$ |
2.42 |
$ |
0.01 |
|||
|
|
|||||||||||
|
Less Distributions: |
|||||||||||
|
Dividends from net investment income |
$ |
(0.17) |
$ |
(0.31) |
$ |
(0.31) |
$ |
(0.18) |
|||
|
Distributions from net realized gains |
0.00 |
(0.81) |
(0.05) |
(0.17) |
|||||||
|
Total distributions |
$ |
(0.17) |
$ |
(1.12) |
$ |
(0.36) |
$ |
(0.35) |
|||
|
|
|||||||||||
|
NET ASSET VALUE, END OF PERIOD |
$ |
14.15 |
$ |
14.59 |
$ |
14.26 |
$ |
12.20 |
|||
|
|
|||||||||||
|
Total Return (excludes any applicable sales charge) |
(1.78%)# |
10.26% |
20.01% |
0.14%# |
|||||||
|
|
|||||||||||
|
RATIOS/SUPPLEMENTAL DATA |
|||||||||||
|
Net assets, end of period (in thousands) |
$14,014 |
$17,126 |
$10,392 |
$692 |
|||||||
|
Ratio of expenses to average net assets after waivers2 |
1.70%^ |
1.70% |
1.70% |
1.70%^ |
|||||||
|
Ratio of expenses to average net assets before waivers |
2.28%^ |
2.24% |
2.30% |
2.39%^ |
|||||||
|
Ratio of net investment income to average net assets2 |
2.17%^ |
2.14% |
2.40% |
2.48%^ |
|||||||
|
Portfolio turnover rate |
23.05%# |
44.89% |
25.56% |
38.38%# |
|||||||
|
1 |
Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
|
2 |
This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
^ |
Annualized |
|
# |
Not Annualized. |
|
* |
Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY DIVIDEND HARVEST FUND CLASS I
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
|
Seven |
Period |
|||||||
|
Months |
Year |
From |
||||||
|
Ended |
Ended |
8/1/16* to |
||||||
|
7/31/18 |
12/31/17 |
12/30/16 |
||||||
|
NET ASSET VALUE, BEGINNING OF PERIOD |
$ |
14.69 |
$ |
14.34 |
$ |
13.96 |
||
|
|
||||||||
|
Income (loss) from investment operations: |
||||||||
|
Net investment income (loss) |
$ |
0.26 |
$ |
0.45 |
$ |
0.22 |
||
|
Net realized and unrealized gain (loss) on investments1 |
(0.46) |
1.16 |
0.43 |
|||||
|
Total from investment operations |
$ |
(0.20) |
$ |
1.61 |
$ |
0.65 |
||
|
|
||||||||
|
Less Distributions: |
||||||||
|
Dividends from net investment income |
$ |
(0.24) |
$ |
(0.45) |
$ |
(0.22) |
||
|
Distributions from net realized gains |
0.00 |
(0.81) |
(0.05) |
|||||
|
Returns of capital |
0.00 |
0.00 |
0.00 |
|||||
|
Total distributions |
$ |
(0.24) |
$ |
(1.26) |
$ |
(0.27) |
||
|
|
||||||||
|
NET ASSET VALUE, END OF PERIOD |
$ |
14.25 |
$ |
14.69 |
$ |
14.34 |
||
|
|
||||||||
|
Total Return (excludes any applicable sales charge) |
(1.26%)# |
11.37% |
4.67%# |
|||||
|
|
||||||||
|
RATIOS/SUPPLEMENTAL DATA |
||||||||
|
Net assets, end of period (in thousands) |
$21,565 |
$21,252 |
$5,904 |
|||||
|
Ratio of expenses to average net assets after waivers2 |
0.70%^ |
0.70% |
0.70%^ |
|||||
|
Ratio of expenses to average net assets before waivers |
1.28%^ |
1.24% |
1.31%^ |
|||||
|
Ratio of net investment income to average net assets2 |
3.18%^ |
3.14% |
3.22%^ |
|||||
|
Portfolio turnover rate |
23.05%# |
44.89% |
25.56%# |
|||||
|
1 |
Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
|
2 |
This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
^ |
Annualized |
|
# |
Not Annualized. |
|
* |
Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY ENERGIZED DIVIDEND FUND CLASS A
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
|
Seven |
Period |
|||||||
|
Months |
Year |
From |
||||||
|
Ended |
Ended |
5/2/16* to |
||||||
|
7/31/18 |
12/31/17 |
12/30/16 |
||||||
|
NET ASSET VALUE, BEGINNING OF PERIOD |
$ |
12.43 |
$ |
11.37 |
$ |
10.00 |
||
|
|
||||||||
|
Income (loss) from investment operations: |
||||||||
|
Net investment income (loss) |
$ |
0.27 |
$ |
0.50 |
$ |
0.34 |
||
|
Net realized and unrealized gain (loss) on investments1 |
0.37 |
1.42 |
1.63 |
|||||
|
Total from investment operations |
$ |
0.64 |
$ |
1.92 |
$ |
1.97 |
||
|
|
||||||||
|
Less Distributions: |
||||||||
|
Dividends from net investment income |
$ |
(0.26) |
$ |
(0.50) |
$ |
(0.34) |
||
|
Distributions from net realized gains |
0.00 |
(0.36) |
(0.26) |
|||||
|
Total distributions |
$ |
(0.26) |
$ |
(0.86) |
$ |
(0.60) |
||
|
|
||||||||
|
NET ASSET VALUE, END OF PERIOD |
$ |
12.81 |
$ |
12.43 |
$ |
11.37 |
||
|
|
||||||||
|
Total Return (excludes any applicable sales charge) |
5.36%# |
17.47% |
19.96%# |
|||||
|
|
||||||||
|
RATIOS/SUPPLEMENTAL DATA |
||||||||
|
Net assets, end of period (in thousands) |
$3,286 |
$2,321 |
$1,198 |
|||||
|
Ratio of expenses to average net assets after waivers2,3 |
0.50%^ |
0.35% |
0.17%^ |
|||||
|
Ratio of expenses to average net assets before waivers |
2.48%^ |
4.49% |
8.39%^ |
|||||
|
Ratio of net investment income to average net assets2,3 |
3.89%^ |
5.12% |
5.13%^ |
|||||
|
Portfolio turnover rate |
13.33%# |
60.18% |
30.17%# |
|||||
|
1 |
Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
|
2 |
This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
3 |
The voluntary waiver, based on average net assets, amounted to 0.88 %, 0.70%, and 0.55% for the periods ended 12/30/16, 12/31/17, and 7/31/18, respectively. |
|
^ |
Annualized |
|
# |
Not Annualized. |
|
* |
Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY ENERGIZED DIVIDEND FUND CLASS C
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
|
Seven |
Period |
|||||||
|
Months |
Year |
From |
||||||
|
Ended |
Ended |
5/2/16* to |
||||||
|
7/31/18 |
12/31/17 |
12/30/16 |
||||||
|
NET ASSET VALUE, BEGINNING OF PERIOD |
$ |
12.40 |
$ |
11.36 |
$ |
10.00 |
||
|
|
||||||||
|
Income (loss) from investment operations: |
||||||||
|
Net investment income (loss) |
$ |
0.22 |
$ |
0.43 |
$ |
0.29 |
||
|
Net realized and unrealized gain (loss) on investments1 |
0.37 |
1.40 |
1.62 |
|||||
|
Total from investment operations |
$ |
0.59 |
$ |
1.83 |
$ |
1.91 |
||
|
|
||||||||
|
Less Distributions: |
||||||||
|
Dividends from net investment income |
$ |
(0.22) |
$ |
(0.43) |
$ |
(0.29) |
||
|
Distributions from net realized gains |
0.00 |
(0.36) |
(0.26) |
|||||
|
Total distributions |
$ |
(0.22) |
$ |
(0.79) |
$ |
(0.55) |
||
|
|
||||||||
|
NET ASSET VALUE, END OF PERIOD |
$ |
12.77 |
$ |
12.40 |
$ |
11.36 |
||
|
|
||||||||
|
Total Return (excludes any applicable sales charge) |
4.90%# |
16.64% |
19.30%# |
|||||
|
|
||||||||
|
RATIOS/SUPPLEMENTAL DATA |
||||||||
|
Net assets, end of period (in thousands) |
$379 |
$292 |
$114 |
|||||
|
Ratio of expenses to average net assets after waivers2,3 |
1.25%^ |
1.10% |
0.91%^ |
|||||
|
Ratio of expenses to average net assets before waivers |
3.22%^ |
5.17% |
12.55%^ |
|||||
|
Ratio of net investment income to average net assets2,3 |
3.16%^ |
5.03% |
4.14%^ |
|||||
|
Portfolio turnover rate |
13.33%# |
60.18% |
30.17%# |
|||||
|
1 |
Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
|
2 |
This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
3 |
The voluntary waiver, based on average net assets, amounted to 0.88 %, 0.70%, and 0.55% for the periods ended 12/30/16, 12/31/17, and 7/31/18, respectively. |
|
^ |
Annualized |
|
# |
Not Annualized. |
|
* |
Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY ENERGIZED DIVIDEND FUND CLASS I
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
|
Seven |
Period |
|||||||
|
Months |
Year |
From |
||||||
|
Ended |
Ended |
8/1/16* to |
||||||
|
7/31/18 |
12/31/17 |
12/30/16 |
||||||
|
NET ASSET VALUE, BEGINNING OF PERIOD |
$ |
12.43 |
$ |
11.37 |
$ |
9.95 |
||
|
|
||||||||
|
Income (loss) from investment operations: |
||||||||
|
Net investment income (loss) |
$ |
0.29 |
$ |
0.53 |
$ |
0.27 |
||
|
Net realized and unrealized gain (loss) on investments1 |
0.38 |
1.42 |
1.68 |
|||||
|
Total from investment operations |
$ |
0.67 |
$ |
1.95 |
$ |
1.95 |
||
|
|
||||||||
|
Less Distributions: |
||||||||
|
Dividends from net investment income |
$ |
(0.28) |
$ |
(0.53) |
$ |
(0.27) |
||
|
Distributions from net realized gains |
0.00 |
(0.36) |
(0.26) |
|||||
|
Total distributions |
$ |
(0.28) |
$ |
(0.89) |
$ |
(0.53) |
||
|
|
||||||||
|
NET ASSET VALUE, END OF PERIOD |
$ |
12.82 |
$ |
12.43 |
$ |
11.37 |
||
|
|
||||||||
|
Total Return (excludes any applicable sales charge) |
5.57%# |
17.74% |
19.80%# |
|||||
|
|
||||||||
|
RATIOS/SUPPLEMENTAL DATA |
||||||||
|
Net assets, end of period (in thousands) |
$3,651 |
$2,938 |
$395 |
|||||
|
Ratio of expenses to average net assets after waivers2,3 |
0.25%^ |
0.10% |
0.00%^ |
|||||
|
Ratio of expenses to average net assets before waivers |
2.23%^ |
3.72% |
5.54%^ |
|||||
|
Ratio of net investment income to average net assets2,3 |
4.16%^ |
11.66% |
6.90%^ |
|||||
|
Portfolio turnover rate |
13.33%# |
60.18% |
30.17%# |
|||||
|
1 |
Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
|
2 |
This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
3 |
The voluntary waiver, based on average net assets, amounted to 0.88 %, 0.70%, and 0.55% for the periods ended 12/30/16, 12/31/17, and 7/31/18, respectively. |
|
^ |
Annualized |
|
# |
Not Annualized. |
|
* |
Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY GROWTH & INCOME FUND CLASS A
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
|
Seven |
|||||||||||||||||
|
Months |
Year |
Year |
Year |
Year |
Year |
||||||||||||
|
Ended |
Ended |
Ended |
Ended |
Ended |
Ended |
||||||||||||
|
7/31/18 |
12/31/17 |
12/30/16 |
12/31/15 |
12/31/14 |
12/31/13 |
||||||||||||
|
NET ASSET VALUE, BEGINNING OF PERIOD |
$ |
53.51 |
$ |
48.38 |
$ |
45.07 |
$ |
47.03 |
$ |
49.05 |
$ |
42.80 |
|||||
|
|
|||||||||||||||||
|
Income (loss) from investment operations: |
|||||||||||||||||
|
Net investment income (loss) |
$ |
0.27 |
$ |
0.58 |
$ |
0.71 |
$ |
0.35 |
$ |
0.32 |
$ |
0.17 |
|||||
|
Net realized and unrealized gain (loss) on investments1 |
2.84 |
8.46 |
3.72 |
(1.33) |
2.71 |
11.67 |
|||||||||||
|
Total from investment operations |
$ |
3.11 |
$ |
9.04 |
$ |
4.43 |
$ |
(0.98) |
$ |
3.03 |
$ |
11.84 |
|||||
|
|
|||||||||||||||||
|
Less Distributions: |
|||||||||||||||||
|
Dividends from net investment income |
$ |
0.00 |
$ |
(0.58) |
$ |
(0.71) |
$ |
(0.35) |
$ |
(0.32) |
$ |
(0.18) |
|||||
|
Distributions from net realized gains |
0.00 |
(3.33) |
(0.41) |
(0.63) |
(4.73) |
(5.41) |
|||||||||||
|
Total distributions |
$ |
0.00 |
$ |
(3.91) |
$ |
(1.12) |
$ |
(0.98) |
$ |
(5.05) |
$ |
(5.59) |
|||||
|
|
|||||||||||||||||
|
NET ASSET VALUE, END OF PERIOD |
$ |
56.62 |
$ |
53.51 |
$ |
48.38 |
$ |
45.07 |
$ |
47.03 |
$ |
49.05 |
|||||
|
|
|||||||||||||||||
|
Total Return (excludes any applicable sales charge) |
5.81%# |
18.68% |
9.81% |
(2.10%) |
6.01% |
27.76% |
|||||||||||
|
|
|||||||||||||||||
|
RATIOS/SUPPLEMENTAL DATA |
|||||||||||||||||
|
Net assets, end of period (in thousands) |
$34,948 |
$34,600 |
$32,933 |
$35,689 |
$36,187 |
$33,803 |
|||||||||||
|
Ratio of expenses to average net assets after waivers2 |
1.25%^ |
1.25% |
1.25% |
1.25% |
1.25% |
1.36% |
|||||||||||
|
Ratio of expenses to average net assets before waivers |
1.93%^ |
1.95% |
1.92% |
1.84% |
1.80% |
1.82% |
|||||||||||
|
Ratio of net investment income to average net assets2 |
0.85%^ |
1.07% |
1.40% |
0.77% |
0.64% |
0.37% |
|||||||||||
|
Portfolio turnover rate |
5.99%# |
32.42% |
50.94% |
49.88% |
73.25% |
116.11% |
|||||||||||
|
1 |
Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
|
2 |
This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
^ |
Annualized |
|
# |
Not Annualized. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY GROWTH & INCOME FUND CLASS C
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
|
Seven |
Period |
||||||||||
|
Months |
Year |
Year |
From |
||||||||
|
Ended |
Ended |
Ended |
8/3/15* to |
||||||||
|
7/31/18 |
12/31/17 |
12/30/16 |
12/31/15 |
||||||||
|
NET ASSET VALUE, BEGINNING OF PERIOD |
$ |
53.49 |
$ |
48.38 |
$ |
45.01 |
$ |
49.50 |
|||
|
|
|||||||||||
|
Income (loss) from investment operations: |
|||||||||||
|
Net investment income (loss) |
$ |
0.12 |
$ |
0.17 |
$ |
0.37 |
$ |
0.27 |
|||
|
Net realized and unrealized gain (loss) on investments1 |
2.84 |
8.44 |
3.78 |
(3.86) |
|||||||
|
Total from investment operations |
$ |
2.96 |
$ |
8.61 |
$ |
4.15 |
$ |
(3.59) |
|||
|
|
|||||||||||
|
Less Distributions: |
|||||||||||
|
Dividends from net investment income |
$ |
0.00 |
$ |
(0.17) |
$ |
(0.37) |
$ |
(0.27) |
|||
|
Distributions from net realized gains |
0.00 |
(3.33) |
(0.41) |
(0.63) |
|||||||
|
Total distributions |
$ |
0.00 |
$ |
(3.50) |
$ |
(0.78) |
$ |
(0.90) |
|||
|
|
|||||||||||
|
NET ASSET VALUE, END OF PERIOD |
$ |
56.45 |
$ |
53.49 |
$ |
48.38 |
$ |
45.01 |
|||
|
|
|||||||||||
|
Total Return (excludes any applicable sales charge) |
5.53%# |
17.79% |
9.18% |
(7.25%)# |
|||||||
|
|
|||||||||||
|
RATIOS/SUPPLEMENTAL DATA |
|||||||||||
|
Net assets, end of period (in thousands) |
$195 |
$225 |
$182 |
$168 |
|||||||
|
Ratio of expenses to average net assets after waivers2 |
1.70%^ |
2.00% |
2.00% |
2.00%^ |
|||||||
|
Ratio of expenses to average net assets before waivers |
1.74%^ |
2.70% |
2.68% |
2.66%^ |
|||||||
|
Ratio of net investment income (loss) to average net assets2 |
0.39%^ |
0.33% |
0.64% |
(0.01%)^ |
|||||||
|
Portfolio turnover rate |
5.99%# |
32.42% |
50.94% |
49.88%# |
|||||||
|
1 |
Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
|
2 |
This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
^ |
Annualized |
|
# |
Not Annualized. |
|
* |
Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY GROWTH & INCOME FUND CLASS I
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
|
Seven |
Period |
|||||||
|
Months |
Year |
From |
||||||
|
Ended |
Ended |
8/1/16* to |
||||||
|
7/31/18 |
12/31/17 |
12/30/16 |
||||||
|
NET ASSET VALUE, BEGINNING OF PERIOD |
$ |
53.49 |
$ |
48.36 |
$ |
48.11 |
||
|
|
||||||||
|
Income (loss) from investment operations: |
||||||||
|
Net investment income (loss) |
$ |
0.34 |
$ |
0.72 |
$ |
0.80 |
||
|
Net realized and unrealized gain (loss) on investments1 |
2.85 |
8.46 |
0.66 |
|||||
|
Total from investment operations |
$ |
3.19 |
$ |
9.18 |
$ |
1.46 |
||
|
|
||||||||
|
Less Distributions: |
||||||||
|
Dividends from net investment income |
$ |
0.00 |
$ |
(0.72) |
$ |
(0.80) |
||
|
Distributions from net realized gains |
0.00 |
(3.33) |
(0.41) |
|||||
|
Total distributions |
$ |
0.00 |
$ |
(4.05) |
$ |
(1.21) |
||
|
|
||||||||
|
NET ASSET VALUE, END OF PERIOD |
$ |
56.68 |
$ |
53.49 |
$ |
48.36 |
||
|
|
||||||||
|
Total Return (excludes any applicable sales charge) |
5.96%# |
18.96% |
3.04%# |
|||||
|
|
||||||||
|
RATIOS/SUPPLEMENTAL DATA |
||||||||
|
Net assets, end of period (in thousands) |
$741 |
$690 |
$228 |
|||||
|
Ratio of expenses to average net assets after waivers2 |
1.00%^ |
1.00% |
1.00%^ |
|||||
|
Ratio of expenses to average net assets before waivers |
1.68%^ |
1.69% |
1.70%^ |
|||||
|
Ratio of net investment income to average net assets2 |
1.08%^ |
1.30% |
1.50%^ |
|||||
|
Portfolio turnover rate |
5.99%# |
32.42% |
50.94%# |
|||||
|
1 |
Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
|
2 |
This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
^ |
Annualized |
|
# |
Not Annualized. |
|
* |
Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY HIGH INCOME FUND CLASS A
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
|
Seven |
|||||||||||||||||
|
Months |
Year |
Year |
Year |
Year |
Year |
||||||||||||
|
Ended |
Ended |
Ended |
Ended |
Ended |
Ended |
||||||||||||
|
7/31/18 |
12/31/17 |
12/30/16 |
12/31/15 |
12/31/14 |
12/31/13 |
||||||||||||
|
NET ASSET VALUE, BEGINNING OF PERIOD |
$ |
7.80 |
$ |
7.66 |
$ |
7.03 |
$ |
7.75 |
$ |
8.02 |
$ |
7.98 |
|||||
|
|
|||||||||||||||||
|
Income (loss) from investment operations: |
|||||||||||||||||
|
Net investment income (loss) |
$ |
0.23 |
$ |
0.37 |
$ |
0.39 |
$ |
0.40 |
$ |
0.42 |
$ |
0.45 |
|||||
|
Net realized and unrealized gain (loss) on investments1 |
(0.14) |
0.14 |
0.63 |
(0.72) |
(0.27) |
0.04 |
|||||||||||
|
Total from investment operations |
$ |
0.09 |
$ |
0.51 |
$ |
1.02 |
$ |
(0.32) |
$ |
0.15 |
$ |
0.49 |
|||||
|
|
|||||||||||||||||
|
Less Distributions: |
|||||||||||||||||
|
Dividends from net investment income |
$ |
(0.23) |
$ |
(0.37) |
$ |
(0.39) |
$ |
(0.40) |
$ |
(0.42) |
$ |
(0.45) |
|||||
|
Total distributions |
$ |
(0.23) |
$ |
(0.37) |
$ |
(0.39) |
$ |
(0.40) |
$ |
(0.42) |
$ |
(0.45) |
|||||
|
|
|||||||||||||||||
|
NET ASSET VALUE, END OF PERIOD |
$ |
7.66 |
$ |
7.80 |
$ |
7.66 |
$ |
7.03 |
$ |
7.75 |
$ |
8.02 |
|||||
|
|
|||||||||||||||||
|
Total Return (excludes any applicable sales charge) |
1.21%# |
6.78% |
14.90% |
(4.43%) |
1.84% |
6.32% |
|||||||||||
|
|
|||||||||||||||||
|
RATIOS/SUPPLEMENTAL DATA |
|||||||||||||||||
|
Net assets, end of period (in thousands) |
$24,099 |
$24,628 |
$25,524 |
$24,338 |
$28,221 |
$28,045 |
|||||||||||
|
Ratio of expenses to average net assets after waivers2 |
0.89%^ |
1.13% |
1.15% |
1.15% |
1.15% |
1.15% |
|||||||||||
|
Ratio of expenses to average net assets before waivers |
1.73%^ |
1.71% |
1.72% |
1.66% |
1.63% |
1.65% |
|||||||||||
|
Ratio of net investment income to average net assets2 |
5.18%^ |
4.80% |
5.34% |
5.20% |
5.25% |
5.64% |
|||||||||||
|
Portfolio turnover rate |
16.50%# |
29.22% |
27.61% |
40.85% |
34.86% |
36.30% |
|||||||||||
|
1 |
Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
|
2 |
This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
^ |
Annualized |
|
# |
Not Annualized. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY HIGH INCOME FUND CLASS C
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
|
Seven |
|||||||||||||||||
|
Months |
Year |
Year |
Year |
Year |
Year |
||||||||||||
|
Ended |
Ended |
Ended |
Ended |
Ended |
Ended |
||||||||||||
|
7/31/18 |
12/31/17 |
12/30/16 |
12/31/15 |
12/31/14 |
12/31/13 |
||||||||||||
|
NET ASSET VALUE, BEGINNING OF PERIOD |
$ |
7.82 |
$ |
7.68 |
$ |
7.05 |
$ |
7.77 |
$ |
8.04 |
$ |
8.00 |
|||||
|
|
|||||||||||||||||
|
Income (loss) from investment operations: |
|||||||||||||||||
|
Net investment income (loss) |
$ |
0.20 |
$ |
0.31 |
$ |
0.34 |
$ |
0.34 |
$ |
0.36 |
$ |
0.39 |
|||||
|
Net realized and unrealized gain (loss) on investments1 |
(0.14) |
0.14 |
0.63 |
(0.72) |
(0.27) |
0.04 |
|||||||||||
|
Total from investment operations |
$ |
0.06 |
$ |
0.45 |
$ |
0.97 |
$ |
(0.38) |
$ |
0.09 |
$ |
0.43 |
|||||
|
|
|||||||||||||||||
|
Less Distributions: |
|||||||||||||||||
|
Dividends from net investment income |
$ |
(0.20) |
$ |
(0.31) |
$ |
(0.34) |
$ |
(0.34) |
$ |
(0.36) |
$ |
(0.39) |
|||||
|
Total distributions |
$ |
(0.20) |
$ |
(0.31) |
$ |
(0.34) |
$ |
(0.34) |
$ |
(0.36) |
$ |
(0.39) |
|||||
|
|
|||||||||||||||||
|
NET ASSET VALUE, END OF PERIOD |
$ |
7.68 |
$ |
7.82 |
$ |
7.68 |
$ |
7.05 |
$ |
7.77 |
$ |
8.04 |
|||||
|
|
|||||||||||||||||
|
Total Return (excludes any applicable sales charge) |
0.78%# |
5.98% |
14.02% |
(5.12%) |
1.08% |
5.53% |
|||||||||||
|
|
|||||||||||||||||
|
RATIOS/SUPPLEMENTAL DATA |
|||||||||||||||||
|
Net assets, end of period (in thousands) |
$4,813 |
$5,397 |
$5,293 |
$5,670 |
$9,343 |
$7,888 |
|||||||||||
|
Ratio of expenses to average net assets after waivers2 |
1.64%^ |
1.88% |
1.90% |
1.90% |
1.90% |
1.90% |
|||||||||||
|
Ratio of expenses to average net assets before waivers |
2.48%^ |
2.46% |
2.47% |
2.40% |
2.38% |
2.40% |
|||||||||||
|
Ratio of net investment income to average net assets2 |
4.43%^ |
4.03% |
4.59% |
4.43% |
4.51% |
4.89% |
|||||||||||
|
Portfolio turnover rate |
16.50%# |
29.22% |
27.61% |
40.85% |
34.86% |
36.30% |
|||||||||||
|
1 |
Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
|
2 |
This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
^ |
Annualized |
|
# |
Not Annualized. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
INTEGRITY HIGH INCOME FUND CLASS I
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
|
Seven |
Period |
|||||||
|
Months |
Year |
From |
||||||
|
Ended |
Ended |
8/1/16* to |
||||||
|
7/31/18 |
12/31/17 |
12/30/16 |
||||||
|
NET ASSET VALUE, BEGINNING OF PERIOD |
$ |
7.80 |
$ |
7.65 |
$ |
7.52 |
||
|
|
||||||||
|
Income (loss) from investment operations: |
||||||||
|
Net investment income (loss) |
$ |
0.24 |
$ |
0.39 |
$ |
0.16 |
||
|
Net realized and unrealized gain (loss) on investments1 |
(0.14) |
0.15 |
0.13 |
|||||
|
Total from investment operations |
|
0.10 |
|
0.54 |
$ |
0.29 |
||
|
|
||||||||
|
Less Distributions: |
||||||||
|
Dividends from net investment income |
$ |
(0.24) |
$ |
(0.39) |
$ |
(0.16) |
||
|
Total distributions |
$ |
(0.24) |
$ |
(0.39) |
$ |
(0.16) |
||
|
|
||||||||
|
NET ASSET VALUE, END OF PERIOD |
$ |
7.66 |
$ |
7.80 |
$ |
7.65 |
||
|
|
||||||||
|
Total Return (excludes any applicable sales charge) |
1.36%# |
7.19% |
3.93%# |
|||||
|
|
||||||||
|
RATIOS/SUPPLEMENTAL DATA |
||||||||
|
Net assets, end of period (in thousands) |
$2,709 |
$2,598 |
$648 |
|||||
|
Ratio of expenses to average net assets after waivers2 |
0.64%^ |
0.87% |
0.90%^ |
|||||
|
Ratio of expenses to average net assets before waivers |
1.48%^ |
1.46% |
1.49%^ |
|||||
|
Ratio of net investment income to average net assets2 |
5.43%^ |
5.04% |
5.18%^ |
|||||
|
Portfolio turnover rate |
16.50%# |
29.22% |
27.61%# |
|||||
|
1 |
Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
|
2 |
This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
^ |
Annualized |
|
# |
Not Annualized. |
|
* |
Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
WILLISTON BASIN/MID-NORTH AMERICA STOCK FUND CLASS A
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
|
Seven |
|||||||||||||||||
|
Months |
Year |
Year |
Year |
Year |
Year |
||||||||||||
|
Ended |
Ended |
Ended |
Ended |
Ended |
Ended |
||||||||||||
|
7/31/18 |
12/31/17 |
12/30/16 |
12/31/15 |
12/31/14 |
12/31/13 |
||||||||||||
|
NET ASSET VALUE, BEGINNING OF PERIOD |
$ |
5.48 |
$ |
5.93 |
$ |
4.31 |
$ |
5.80 |
$ |
6.84 |
$ |
5.43 |
|||||
|
|
|||||||||||||||||
|
Income (loss) from investment operations: |
|||||||||||||||||
|
Net investment income (loss) |
$ |
0.01 |
$ |
0.01 |
$ |
0.01 |
$ |
0.03 |
$ |
0.00 |
$ |
(0.01) |
|||||
|
Net realized and unrealized gain (loss) on investments1 |
0.11 |
(0.45) |
1.62 |
(1.49) |
(0.78) |
1.75 |
|||||||||||
|
Total from investment operations |
$ |
0.12 |
$ |
(0.44) |
$ |
1.63 |
$ |
(1.46) |
$ |
(0.78) |
$ |
1.74 |
|||||
|
|
|||||||||||||||||
|
Less Distributions: |
|||||||||||||||||
|
Dividends from net investment income |
$ |
0.00 |
$ |
(0.01) |
$ |
(0.01) |
$ |
(0.03) |
$ |
0.00 |
$ |
0.00 |
|||||
|
Distributions from net realized gains |
0.00 |
0.00 |
0.00 |
0.00 |
(0.26) |
(0.33) |
|||||||||||
|
Total distributions |
$ |
0.00 |
$ |
(0.01) |
$ |
(0.01) |
$ |
(0.03) |
$ |
(0.26) |
$ |
(0.33) |
|||||
|
|
|||||||||||||||||
|
NET ASSET VALUE, END OF PERIOD |
$ |
5.60 |
$ |
5.48 |
$ |
5.93 |
$ |
4.31 |
$ |
5.80 |
$ |
6.84 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Total Return (excludes any applicable sales charge) |
2.19%# |
(7.48%) |
37.82% |
(25.16%) |
(11.43%) |
32.00% |
|||||||||||
|
|
|||||||||||||||||
|
RATIOS/SUPPLEMENTAL DATA |
|||||||||||||||||
|
Net assets, end of period (in thousands) |
$282,793 |
$339,385 |
$592,629 |
$490,052 |
$757,507 |
$701,872 |
|||||||||||
|
Ratio of expenses to average net assets after waivers2 |
1.49%^ |
1.47% |
1.46% |
1.44% |
1.39% |
1.41% |
|||||||||||
|
Ratio of expenses to average net assets before waivers |
1.49%^ |
1.47% |
1.47% |
1.44% |
1.39% |
1.41% |
|||||||||||
|
Ratio of net investment income (loss) to average net assets2 |
0.19%^ |
0.15% |
0.17% |
0.52% |
(0.02%) |
(0.26%) |
|||||||||||
|
Portfolio turnover rate |
43.01%# |
41.31% |
55.17% |
63.76% |
67.68% |
85.63% |
|||||||||||
|
1 |
Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
|
2 |
This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
^ |
Annualized |
|
# |
Not Annualized. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
WILLISTON BASIN/MID-NORTH AMERICA STOCK FUND CLASS C
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
|
Seven |
Period |
|||||||||||||
|
Months |
Year |
Year |
Year |
From |
||||||||||
|
Ended |
Ended |
Ended |
Ended |
5/1/14* to |
||||||||||
|
7/31/18 |
12/31/17 |
12/30/16 |
12/31/15 |
12/31/14 |
||||||||||
|
NET ASSET VALUE, BEGINNING OF PERIOD |
$ |
5.43 |
$ |
5.89 |
$ |
4.30 |
$ |
5.79 |
$ |
7.45 |
||||
|
|
||||||||||||||
|
Income (loss) from investment operations: |
||||||||||||||
|
Net investment income (loss) |
$ |
(0.01) |
$ |
(0.02) |
$ |
(0.02) |
$ |
0.01 |
$ |
(0.01) |
||||
|
Net realized and unrealized gain (loss) on investments1 |
0.11 |
(0.44) |
1.61 |
(1.49) |
(1.39) |
|||||||||
|
Total from investment operations |
$ |
0.10 |
$ |
(0.46) |
$ |
1.59 |
$ |
(1.48) |
$ |
(1.40) |
||||
|
|
||||||||||||||
|
Less Distributions: |
||||||||||||||
|
Dividends from net investment income |
$ |
0.00 |
$ |
0.00 |
$ |
0.00 |
$ |
(0.01) |
$ |
0.00 |
||||
|
Distributions from net realized gains |
0.00 |
0.00 |
0.00 |
0.00 |
(0.26) |
|||||||||
|
Total distributions |
$ |
0.00 |
$ |
0.00 |
$ |
0.00 |
$ |
(0.01) |
$ |
(0.26) |
||||
|
|
||||||||||||||
|
NET ASSET VALUE, END OF PERIOD |
$ |
5.53 |
$ |
5.43 |
$ |
5.89 |
$ |
4.30 |
$ |
5.79 |
||||
|
|
||||||||||||||
|
Total Return (excludes any applicable sales charge) |
1.84%# |
(7.81%) |
36.98% |
(25.52%) |
(18.82%)# |
|||||||||
|
|
||||||||||||||
|
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||
|
Net assets, end of period (in thousands) |
$31,899 |
$37,629 |
$51,909 |
$38,170 |
$30,809 |
|||||||||
|
Ratio of expenses to average net assets after waivers2 |
1.99%^ |
1.97% |
1.96% |
1.94% |
1.89%^ |
|||||||||
|
Ratio of expenses to average net assets before waivers |
1.99%^ |
1.97% |
1.97% |
1.94% |
1.89%^ |
|||||||||
|
Ratio of net investment income (loss) to average net assets2 |
(0.32%)^ |
(0.34%) |
(0.33%) |
0.03% |
(0.52%)^ |
|||||||||
|
Portfolio turnover rate |
43.01%# |
41.31% |
55.17% |
63.76% |
67.68%# |
|||||||||
|
1 |
Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
|
2 |
This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
^ |
Annualized |
|
# |
Not Annualized. |
|
* |
Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
WILLISTON BASIN/MID-NORTH AMERICA STOCK FUND CLASS I
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
|
Seven |
Period |
|||||||
|
Months |
Year |
From |
||||||
|
Ended |
Ended |
8/1/16* to |
||||||
|
7/31/18 |
12/31/17 |
12/30/16 |
||||||
|
NET ASSET VALUE, BEGINNING OF PERIOD |
$ |
5.47 |
$ |
5.92 |
$ |
4.74 |
||
|
|
||||||||
|
Income (loss) from investment operations: |
||||||||
|
Net investment income (loss) |
$ |
0.02 |
$ |
0.04 |
$ |
0.03 |
||
|
Net realized and unrealized gain (loss) on investments1 |
0.11 |
(0.45) |
1.19 |
|||||
|
Total from investment operations |
$ |
0.13 |
$ |
(0.41) |
$ |
1.22 |
||
|
|
||||||||
|
Less Distributions: |
||||||||
|
Dividends from net investment income |
$ |
0.00 |
$ |
(0.04) |
$ |
(0.03) |
||
|
Returns of capital |
0.00 |
0.00 |
(0.01) |
|||||
|
Total distributions |
$ |
0.00 |
$ |
(0.04) |
$ |
(0.04) |
||
|
|
||||||||
|
NET ASSET VALUE, END OF PERIOD |
$ |
5.60 |
$ |
5.47 |
$ |
5.92 |
||
|
|
||||||||
|
Total Return (excludes any applicable sales charge) |
2.38%# |
(6.92%) |
25.66%# |
|||||
|
|
||||||||
|
RATIOS/SUPPLEMENTAL DATA |
||||||||
|
Net assets, end of period (in thousands) |
$44,757 |
$60,562 |
$14,891 |
|||||
|
Ratio of expenses to average net assets after waivers2 |
0.99%^ |
0.97% |
0.97%^ |
|||||
|
Ratio of expenses to average net assets before waivers |
0.99%^ |
0.97% |
0.97%^ |
|||||
|
Ratio of net investment income (loss) to average net assets2 |
0.69%^ |
0.71% |
0.67%^ |
|||||
|
Portfolio turnover rate |
43.01%# |
41.31% |
55.17%# |
|||||
|
1 |
Net realized and unrealized gain/(loss) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the statement of operations due to share transactions for the period. |
|
2 |
This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
|
^ |
Annualized |
|
# |
Not Annualized. |
|
* |
Commencement of operations. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Trustees of
The Integrity Funds
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of The Integrity Funds, comprising the Integrity Dividend Harvest Fund, Integrity Energized Dividend Fund, Integrity Growth & Income Fund, Integrity High Income Fund and Williston Basin/Mid-North America Stock Fund (the “Funds”), as of July 31, 2018, and the related statements of operations for the seven months ended July 31, 2018 and for the year ended December 31, 2017, the statements of changes in net assets for the seven months ended July 31, 2018 and for the years ended December 31, 2017 and 2016, including the related notes, and the financial highlights for each of the periods indicated in the period ended July 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of July 31, 2018, the results of their operations, the changes in their net assets, and the financial highlights for each of the periods indicated in the period ended July 31, 2018, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits include performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and confirmation of securities owned as of July 31, 2018, or by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers or counterparties were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies advised by Viking Fund Management since 2009.
COHEN & COMPANY, LTD.
Cleveland, Ohio
September 13, 2018
EXPENSE EXAMPLE (unaudited)
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads), redemption fees and exchange fees; and (2) ongoing costs, including management fees, distribution (12b-1) fees and other Funds expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the one-half year period shown below and held for the entire one-half year period.
The section in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns together with the amount you invested to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an account value of $8,600 divided by $1,000 equals 8.6), then multiply the result by the number in the appropriate column for your share class in the column entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
The section in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the section in the table under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
|
Beginning |
Ending |
Expenses |
|
||
|
Account |
Account |
Paid |
Annualized |
|
|
|
Value |
Value |
During |
Expense |
|
|
|
|
1/31/18 |
7/31/18 |
Period* |
Ratio |
|
|
Integrity Dividend Harvest Fund |
|
||||
|
Actual - Class A |
$1,000.00 |
$975.50 |
$4.65 |
0.95% |
|
|
Actual - Class C |
$1,000.00 |
$972.20 |
$8.31 |
1.70% |
|
|
Actual - Class I |
$1,000.00 |
$976.80 |
$3.43 |
0.70% |
|
|
Hypothetical - Class A (5% return before expenses) |
$1,000.00 |
$1,020.08 |
$4.76 |
0.95% |
|
|
Hypothetical - Class C (5% return before expenses) |
$1,000.00 |
$1,016.36 |
$8.50 |
1.70% |
|
|
Hypothetical - Class I (5% return before expenses) |
$1,000.00 |
$1,021.32 |
$3.51 |
0.70% |
|
|
Integrity Energized Dividend Fund |
|
||||
|
Actual - Class A |
$1,000.00 |
$1,047.70 |
$2.59 |
0.51% |
|
|
Actual - Class C |
$1,000.00 |
$1,043.90 |
$6.33 |
1.25% |
|
|
Actual - Class I |
$1,000.00 |
$1,049.00 |
$1.27 |
0.25% |
|
|
Hypothetical - Class A (5% return before expenses) |
$1,000.00 |
$1,022.27 |
$2.56 |
0.51% |
|
|
Hypothetical - Class C (5% return before expenses) |
$1,000.00 |
$1,018.60 |
$6.26 |
1.25% |
|
|
Hypothetical - Class I (5% return before expenses) |
$1,000.00 |
$1,023.55 |
$1.25 |
0.25% |
|
|
Integrity Growth & Income Fund |
|
||||
|
Actual - Class A |
$1,000.00 |
$999.10 |
$6.20 |
1.25% |
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Actual - Class C |
$1,000.00 |
$997.00 |
$8.42 |
1.70% |
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Actual - Class I |
$1,000.00 |
$1,000.20 |
$4.96 |
1.00% |
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Hypothetical - Class A (5% return before expenses) |
$1,000.00 |
$1,018.60 |
$6.26 |
1.25% |
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Hypothetical - Class C (5% return before expenses) |
$1,000.00 |
$1,016.36 |
$8.50 |
1.70% |
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Hypothetical - Class I (5% return before expenses) |
$1,000.00 |
$1,019.84 |
$5.01 |
1.00% |
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Integrity High Income Fund |
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Actual - Class A |
$1,000.00 |
$1,007.60 |
$4.43 |
0.89% |
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Actual - Class C |
$1,000.00 |
$1,003.90 |
$8.15 |
1.64% |
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Actual - Class I |
$1,000.00 |
$1,010.10 |
$3.19 |
0.64% |
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Hypothetical - Class A (5% return before expenses) |
$1,000.00 |
$1,020.38 |
$4.46 |
0.89% |
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Hypothetical - Class C (5% return before expenses) |
$1,000.00 |
$1,016.66 |
$8.20 |
1.64% |
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Hypothetical - Class I (5% return before expenses) |
$1,000.00 |
$1,021.62 |
$3.21 |
0.64% |
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Williston Basin/Mid-North America Stock Fund |
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Actual - Class A |
$1,000.00 |
$1,027.50 |
$7.49 |
1.49% |
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Actual - Class C |
$1,000.00 |
$1,024.10 |
$9.99 |
1.99% |
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Actual - Class I |
$1,000.00 |
$1,029.40 |
$4.98 |
0.99% |
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Hypothetical - Class A (5% return before expenses) |
$1,000.00 |
$1,017.41 |
$7.45 |
1.49% |
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Hypothetical - Class C (5% return before expenses) |
$1,000.00 |
$1,014.93 |
$9.94 |
1.99% |
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Hypothetical - Class I (5% return before expenses) |
$1,000.00 |
$1,019.89 |
$4.96 |
0.99% |
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*Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied 181 days in the one-half year period, and divided by 365 days in the fiscal year (to reflect the one-half year period). |
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BOARD OF TRUSTEES AND OFFICERS (unaudited)
The Board of Trustees (“Board”) of the Funds consists of four Trustees (the “Trustees”). These same individuals, unless otherwise noted, also serve as trustees for the six series of Viking Mutual Funds. Three Trustees are not “interested persons” (75% of the total) as defined under the 1940 Act (the “Independent Trustees”). The remaining Trustee is “interested” (the “Interested Trustees”) by virtue of his affiliation with Viking Fund Management, LLC and its affiliates.”
For the purposes of this section, the “Fund Complex” consists of the five series of The Integrity Funds and the six series of Viking Mutual Funds.
Each Trustee serves a Fund until its termination; or until the Trustee’s retirement, resignation, or death; or otherwise as specified in the Funds’ organizational documents. Each Officer serves an annual term. The tables that follow show information for each Trustee and Officer of the Funds.
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INDEPENDENT TRUSTEES |
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Name, Date of Birth, Date Service Began, and Number of Funds Overseen in Fund Complex |
Principal
Occupations for Past Five Years |
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Wade A. Dokken |
Principal occupation(s): Member, WealthVest Financial Partners (2009 to present); Co-President, WealthVest Marketing (2009 to present), Trustee: Integrity Managed Portfolios (2016 to 2018), The Integrity Funds (2016 to present), and Viking Mutual Funds (2016 to present) Other Directorships Held: Not Applicable |
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R. James Maxson |
Principal occupation(s): Attorney: Maxson Law Office P.C. (2002 to present); Trustee: Integrity Managed Portfolios (1999 to 2018), The Integrity Funds (2003 to present), and Viking Mutual Funds (2009 to present) Other Directorships Held: Peoples State Bank of Velva, St. Joseph’s Community Health Foundation and St. Joseph’s Foundation, Minot Community Land Trust |
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Jerry M. Stai |
Principal occupation(s): Minot State University (1999 to present); Non-Profit Specialist, Bremer Bank (2006 to 2014); Trustee: Integrity Managed Portfolios (2006 to 2018), The Integrity Funds (2006 to present), and Viking Mutual Funds (2009 to present) Other Directorships Held: Not Applicable |
The Statement of Additional Information (“SAI”) contains more information about the Funds’ Trustees and is available without charge upon request, by calling Integrity Funds Distributor at 800-276-1262.
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INTERESTED TRUSTEE |
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Name, Position with Trust, Date of Birth, Date Service Began, and Number of Funds Overseen in Fund Complex |
Principal
Occupations for Past Five Years |
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Robert E. Walstad(1) |
Principal occupation(s): Governor (2009 to present): Corridor Investors, LLC; Portfolio Manager (2010 to 2013): Viking Fund Management, LLC; Trustee and Chairman: Integrity Managed Portfolios (1996 to 2018), The Integrity Funds (2003 to present), and Viking Mutual Funds (2009 to present) Other Directorships Held: Not Applicable |
(1) Trustee who is an “interested person” of the Funds as defined in the 1940 Act. Mr. Walstad is an interested person by virtue of being an Officer of the Funds and ownership in Corridor Investors, LLC the parent company of Viking Fund Management, Integrity Fund Services, and Integrity Fund Distributors.
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OTHER OFFICERS |
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Name, Position with Trust, Date of Birth, and Date Service Began |
Principal
Occupations for Past Five Years |
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Shannon D. Radke |
Principal occupation(s): Governor, CEO, and President (2009 to present): Corridor Investors, LLC; Governor and President (1998 to present) and Senior Portfolio Manager (1999 to present): Viking Fund Management, LLC; Governor and President (2009 to present): Integrity Fund Services, LLC and Integrity Funds Distributor, LLC; President: Integrity Managed Portfolios (2009 to 2018), The Integrity Funds (2009 to present), and Viking Mutual Funds (1999 to present) Other Directorships Held: Not Applicable |
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Peter A. Quist |
Principal occupation(s): Governor (2009 to present): Corridor Investors, LLC; Attorney (inactive); Vice President: Integrity Managed Portfolios (1996 to 2018); The Integrity Funds (2003 to present); and Viking Mutual Funds (2009 to present) Other Directorships Held: Not Applicable |
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Adam C. Forthun |
Principal occupation(s): Fund Accounting Manager (2008 to present) and Chief Operating Officer (2013 to present): Integrity Fund Services, LLC; Treasurer: Integrity Managed Portfolios (2008 to 2018), The Integrity Funds (2008 to present), and Viking Mutual Funds (2009 to present) Other Directorships Held: Not Applicable |
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Brent M. Wheeler MF CCO: August 2009 Secretary: October 2009 |
Principal occupation(s): Mutual Fund Chief Compliance Officer: Integrity Managed Portfolios (2005 to 2018), The Integrity Funds, (2005 to present), and Viking Mutual Funds (2009 to present); Secretary: Integrity Managed Portfolios (2009 to 2018), The Integrity Funds and Viking Mutual Funds (2009 to present) Other Directorships Held: Not Applicable |
The SAI contains more information about the Funds’ Trustees and is available without charge upon request, by calling Integrity Funds Distributor at 800-276-1262.
PRIVACY POLICY
Rev. 11/2017
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FACTS |
WHAT DOES INTEGRITY VIKING FUNDS DO WITH YOUR PERSONAL INFORMATION? |
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Why? |
Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
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What? |
The types of personal information we collect and share depend on the product or service you have with us. This information can include:
· Social Security number, name, address · Account balance, transaction history, account transactions · Investment experience, wire transfer instructions
When you are no longer our customer, we continue to share your information as described in this notice. |
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How? |
All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Integrity Viking Funds chooses to share; and whether you can limit this sharing. |
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Reasons we can share your personal information |
Does Integrity Viking Funds share? |
Can you limit this sharing? |
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For our everyday business purposes- such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus |
Yes |
No |
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For our marketing purposes- to offer our products and services to you |
Yes |
No |
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For joint marketing with other financial companies |
No |
We don’t share |
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For our affiliates’ everyday business purposes- information about your transactions and experiences |
Yes |
No |
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For our affiliates’ everyday business purposes- information about your creditworthiness |
No |
We don’t share |
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For non-affiliates to market to you |
No |
We don’t share |
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Questions? |
Call 1-800-601-5593 or go to www.integrityvikingfunds.com |
PRIVACY POLICY (Continued)
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Page 2 |
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Who we are |
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Who is providing this notice? |
Integrity Viking Funds (a family of investment companies) |
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What we do |
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How does Integrity Viking Funds protect my personal information? |
To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We
· train employees on privacy, information security and protection of client information. · limit access to nonpublic personal information to those employees requiring such information in performing their job functions. |
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How does Integrity Viking Funds collect my personal information? |
We collect your personal information, for example, when you:
· open an account or seek financial or tax advice · provide account information or give us your contact information · make a wire transfer
We also collect your personal information from other companies. |
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Why can’t I limit all sharing? |
Federal law gives you the right to limit only:
· sharing for affiliates’ everyday business purposes-information about your creditworthiness · affiliates from using your information to market to you · sharing for non-affiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. |
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Definitions |
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Affiliates |
Companies related by common ownership or control. They can be financial and nonfinancial companies
· The Integrity Funds · Viking Mutual Funds · Corridor Investors, LLC · Viking Fund Management, LLC · Integrity Funds Distributor, LLC · Integrity Fund Services, LLC |
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Non-affiliates |
Companies not related by common ownership or control. They can be financial and nonfinancial companies.
Integrity Viking Funds does not share with non-affiliates so they can market to you. |
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Joint marketing |
A formal agreement between non-affiliated financial companies that together market financial products or services to you.
Integrity Viking Funds doesn’t jointly market. |
Integrity Viking Funds includes:
· The Integrity Funds
· Viking Mutual Funds
PROXY VOTING OF FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to securities held in the Funds’ portfolios are available, without charge and upon request, by calling 800-276-1262. A report on Form N-PX of how the Funds voted any such proxies during the most recent 12-month period ended June 30 is available through the Funds’ website at www.integrityvikingfunds.com. The information is also available from the Electronic Data Gathering Analysis and Retrieval (“EDGAR”) database on the website of the Securities and Exchange Commission (“SEC”) at www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
Within 60 days of the end of their second and fourth fiscal quarters, the Funds provide a complete schedule of portfolio holdings in their semi-annual and annual reports on the Form N-CSR(S). These reports are filed electronically with the SEC and are delivered to the shareholders of the Funds. The Funds also files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q and N-CSR(S) are available on the SEC’s website at www.sec.gov. The Funds’ Forms N-Q and N-CSR(S) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 202-551-8090. You may also access this information from the Funds’ website at www.integrityvikingfunds.com.
SHAREHOLDER INQUIRIES AND MAILINGS
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Direct inquiries regarding the Funds to: Integrity Funds Distributor, LLC PO Box 500 Minot, ND 58702 Phone: 800-276-1262 |
Direct inquiries regarding account information to: Integrity Fund Services, LLC PO Box 759 Minot, ND 58702 Phone: 800-601-5593 |
To reduce their expenses, the Funds may mail only one copy of their prospectus and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive additional copies of these documents, please call Integrity Funds Distributor at 800-276-1262 or contact your financial institution. Integrity Funds Distributor will begin sending you individual copies 30 days after receiving your request.
Integrity Viking Funds are sold by prospectus only. An investor should consider the investment objectives, risks, and charges and expenses of the investment company carefully before investing. The prospectus contains this and other information about the investment company. You may obtain a prospectus at no cost from your financial adviser or at www.integrityvikingfunds.com. Please read the prospectus carefully before investing.
Equity Funds
Integrity Dividend Harvest Fund
Integrity Energized Dividend Fund
Integrity Growth & Income Fund
Williston Basin/Mid-North America Stock Fund
Corporate Bond Fund
Integrity High Income Fund
State-Specific Tax-Exempt Bond Funds
Viking Tax-Free Fund for North Dakota
Viking Tax-Free Fund for Montana
Kansas Municipal Fund
Maine Municipal Fund
Nebraska Municipal Fund
Oklahoma Municipal Fund
Item 2. CODE OF ETHICS.
At the end of the period covered by this report, the registrant has adopted a code of ethics as defined in Item 2 of Form N-CSR that applies to the registrant’s principal executive officer and principal financial officer (herein referred to as the “Code”). There were no amendments to the Code during the period covered by this report. The registrant did not grant any waivers, including implicit waivers, from any provisions of the Code during the period of this report. The Code is available on the Integrity Viking Funds website at http://www.integrityvikingfunds.com. A copy of the Code is also available, without charge, upon request by calling 800-601-5593. The Code is filed herewith pursuant to Item 12(a)(1) as EX-99.CODE ETH.
Item 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees has determined that Jerry Stai is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Stai is “independent” for purposes of Item 3 of Form N-CSR.
Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
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(a) |
Audit Fees: The aggregate fees billed for each of the last two fiscal years for professional services rendered by Cohen Fund Audit Services, Ltd. (“Cohen”), the principal accountant for the audit of the registrant’s annual financial statements, for services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $37,306 for the seven months ended July 31, 2018, and $64,600 for the year ended December 31, 2017. | ||
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(b) |
Audit-Related Fees: The aggregate fees billed in each of the last two fiscal years for assurance and related services by Cohen that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were $0 for the seven months ended July 31, 2018, and $0 for the year ended December 31, 2017. | ||
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(c) |
Tax Fees: The aggregate fees billed in each of the last two fiscal years for professional services rendered by Cohen for tax compliance, tax advice, and tax planning were $12,500 for the seven months ended July 31, 2018, and $12,500 for the year ended December 31, 2017. Such services included review of excise distribution calculations (if applicable), preparation of the Trust’s federal, state, and excise tax returns, tax services related to mergers, and routine counseling. | ||
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(d) |
All Other Fees: The aggregate fees billed in each of the last two fiscal years for products and services provided by Cohen, other than the services reported in paragraphs (a) through (c) of this Item: None. | ||
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(e) |
(1) |
Audit Committee Pre-Approval Policies and Procedures | |
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The registrant’s audit committee has adopted policies and procedures that require the audit committee to pre-approve all audit and non-audit services provided to the registrant by the principal accountant. |
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(2) |
Percentage of services referred to in 4(b) through 4(d) that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X | |
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0% of the services described in paragraphs (b) through (d) of Item 4 were not pre-approved by the audit committee. |
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(f) |
All services performed on the engagement to audit the registrant’s financial statements for the most recent fiscal year-end were performed by Cohen’s full-time permanent employees. | ||
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(g) |
Non-Audit Fees: None. | ||
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(h) |
Principal Accountant’s Independence: The registrant’s auditor did not provide any non-audit services to the registrant’s investment adviser or any entity controlling, controlled by, or controlled with the registrant’s investment adviser that provides ongoing services to the registrant. | ||
Item 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable
Item 6. INVESTMENTS.
The Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable
Item 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable
Item 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable
Item 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees in the last fiscal half-year.
Item 11. CONTROLS AND PROCEDURES.
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(a) |
Based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this Form N-CSR (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 effectively designed to ensure that information required to be disclosed by the registrant in the Report is recorded, processed, summarized and reported by the filing date, including ensuring that information required to be disclosed in the Report is accumulated and communicated to the registrant’s principal executive officer and principal financial officer who are making certifications in the Report, as appropriate, to allow timely decisions regarding required disclosure. |
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(b) |
There were no 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 half-year that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
Item 12. EXHIBITS.
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(a) |
(1) |
Code of ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99. CODE ETH. |
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(2) |
A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the 1940 Act (17 CFR 270.30a-2) is filed and attached hereto as EX-99. CERT. |
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(3) |
Not applicable. |
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(b) |
Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is filed and attached hereto. |
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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/ Shannon D. Radke
Shannon D. Radke
President
September 21, 2018
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/ Shannon D. Radke
Shannon D. Radke
President
September 21, 2018
By: /s/ Adam Forthun
Adam Forthun
Treasurer
September 21, 2018