AQUILA HIGH INCOME FUND
SCHEDULE OF INVESTMENTS
September 30, 2023
(unaudited)
Principal Amount |
Corporate Bonds (94.5%) | Value | (a) | |||
Banking (2.3%) | ||||||
Comerica, Inc. | ||||||
$1,750,000 | 2.500%, 07/23/24 | $1,675,198 | ||||
The Huntington National Bank | ||||||
500,000 | 3.550%, 10/06/23 | 499,871 | ||||
2,175,069 | ||||||
Basic Industry (2.4%) | ||||||
Metals and Mining (1.5%) | ||||||
Cleveland-Cliffs, Inc. | ||||||
1,500,000 | 6.750%, 04/15/30 144A | 1,401,925 | ||||
Paper (0.9%) | ||||||
Mercer International, Inc. | ||||||
975,000 | 5.500%, 01/15/26 | 915,775 | ||||
Total Basic Industry | 2,317,700 | |||||
Brokerage/Asset Managers/ Exchanges (1.3%) | ||||||
LPL Holdings, Inc. | ||||||
1,375,000 | 4.625%, 11/15/27 144A | 1,270,336 | ||||
Capital Goods (8.9%) | ||||||
Aerospace/Defense (1.5%) | ||||||
TransDigm, Inc. | ||||||
1,500,000 | 6.875%, 12/15/30 144A | 1,470,816 | ||||
Building Materials (3.0%) | ||||||
Builders FirstSource, Inc. | ||||||
1,253,000 | 5.000%, 03/01/30 144A | 1,117,184 | ||||
PGT Innovations, Inc. | ||||||
1,866,000 | 4.375%, 10/01/29 144A | 1,720,607 | ||||
2,837,791 | ||||||
AQUILA HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2023
(unaudited)
Principal Amount |
Corporate Bonds (continued) | Value | (a) | |||
Diversified Manufacturing (2.9%) | ||||||
WESCO Distribution, Inc. | ||||||
$2,750,000 | 7.250%, 06/15/28 144A | $2,763,342 | ||||
Packaging (1.5%) | ||||||
Ball Corp. | ||||||
500,000 | 4.000%, 11/15/23 | 497,706 | ||||
Berry Global, Inc. | ||||||
1,000,000 | 5.625%, 07/15/27 144A | 966,032 | ||||
1,463,738 | ||||||
Total Capital Goods | 8,535,687 | |||||
Communications (1.5%) | ||||||
Cable Satellite (1.5%) | ||||||
Viasat, Inc. | ||||||
1,550,000 | 5.625%, 09/15/25 144A | 1,431,813 | ||||
Consumer Cyclical (28.1%) | ||||||
Automotive (4.5%) | ||||||
Allison Transmission, Inc. | ||||||
500,000 | 5.875%, 06/01/29 144A | 471,450 | ||||
Ford Holdings LLC | ||||||
1,000,000 | 9.300%, 03/01/30 | 1,086,790 | ||||
Ford Motor Company | ||||||
500,000 | 6.100%, 08/19/32 | 470,956 | ||||
Ford Motor Credit Co. LLC | ||||||
1,000,000 | 5.584%, 03/18/24 | 993,638 | ||||
JB Poindexter & Co., Inc. | ||||||
1,350,000 | 7.125%, 04/15/26 144A | 1,313,313 | ||||
4,336,147 | ||||||
AQUILA HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2023
(unaudited)
Principal Amount |
Corporate Bonds (continued) | Value | (a) | |||
Consumer Cyclical Services (5.3%) | ||||||
ASGN, Inc. | ||||||
$1,575,000 | 4.625%, 05/15/28 144A | $1,405,112 | ||||
Cars.com, Inc. | ||||||
1,850,000 | 6.375%, 11/01/28 144A | 1,681,188 | ||||
Cushman & Wakefield US Borrower LLC | ||||||
2,100,000 | 6.750%, 05/15/28 144A | 1,937,460 | ||||
5,023,760 | ||||||
Gaming (5.9%) | ||||||
Caesars Entertainment, Inc. | ||||||
1,500,000 | 6.250%, 07/01/25 144A | 1,479,469 | ||||
Churchill Downs, Inc. | ||||||
600,000 | 5.500%, 04/01/27 144A | 571,915 | ||||
2,000,000 | 4.750%, 01/15/28 144A | 1,804,082 | ||||
Penn Entertainment, Inc. | ||||||
500,000 | 5.625%, 01/15/27 144A | 470,260 | ||||
VICI Properties LP/VICI Note Co., Inc. | ||||||
1,500,000 | 4.625%, 12/01/29 144A | 1,330,575 | ||||
5,656,301 | ||||||
Home Construction (1.7%) | ||||||
Century Communities, Inc. | ||||||
1,675,000 | 6.750%, 06/01/27 | 1,646,044 | ||||
Leisure (4.6%) | ||||||
Live Nation Entertainment, Inc. | ||||||
1,475,000 | 4.875%, 11/01/24 144A | 1,449,188 | ||||
1,550,000 | 4.750%, 10/15/27 144A | 1,419,219 | ||||
Royal Caribbean Cruises Ltd. | ||||||
1,500,000 | 8.250%, 01/15/29 144A | 1,556,192 | ||||
4,424,599 | ||||||
Lodging (1.3%) | ||||||
Marriott Ownership Resorts, Inc. | ||||||
1,450,000 | 4.750%, 01/15/28 | 1,269,084 | ||||
Restaurants (0.9%) | ||||||
Dave & Buster's, Inc. | ||||||
880,000 | 7.625%, 11/01/25 144A | 879,610 |
AQUILA HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2023
(unaudited)
Principal Amount |
Corporate Bonds (continued) | Value | (a) | |||
Retailers (3.9%) | ||||||
Academy Ltd. | ||||||
$2,050,000 | 6.000%, 11/15/27 144A | $1,937,660 | ||||
Bath & Body Works, Inc. | ||||||
870,000 | 6.694%, 01/15/27 | 843,635 | ||||
1,000,000 | 7.500%, 06/15/29 | 987,821 | ||||
3,769,116 | ||||||
Total Consumer Cyclical | 27,004,661 | |||||
Consumer Non-Cyclical (8.2%) | ||||||
Food and Beverage (2.5%) | ||||||
Performance Food Group, Inc. | ||||||
1,075,000 | 6.875%, 05/01/25 144A | 1,073,656 | ||||
US Foods, Inc. | ||||||
1,500,000 | 4.750%, 02/15/29 144A | 1,340,652 | ||||
2,414,308 | ||||||
Healthcare (1.1%) | ||||||
IQVIA, Inc. | ||||||
1,150,000 | 5.000%, 10/15/26 144A | 1,099,459 | ||||
Supermarkets (4.6%) | ||||||
Albertsons Cos Inc / Safeway, Inc. / New Albertsons LP / Albertsons LLC | ||||||
1,325,000 | 4.625%, 01/15/27 144A | 1,251,089 | ||||
1,300,000 | 5.875%, 02/15/28 144A | 1,251,222 | ||||
SEG Holding LLC/ SEG Finance Corp. | ||||||
1,875,000 | 5.625%, 10/15/28 144A | 1,879,688 | ||||
4,381,999 | ||||||
Total Consumer Non-Cyclical | 7,895,766 | |||||
Electric (1.3%) | ||||||
Midland Cogeneration Venture LP | ||||||
1,308,969 | 6.000%, 03/15/25 144A | 1,292,606 | ||||
AQUILA HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2023
(unaudited)
Principal Amount |
Corporate Bonds (continued) | Value | (a) | |||
Energy (13.1%) | ||||||
Independent (1.1%) | ||||||
Occidental Petroleum Corp. | ||||||
$1,000,000 | 7.500%, 05/01/31 | $1,061,243 | ||||
Midstream (8.4%) | ||||||
Cheniere Energy, Inc. | ||||||
1,000,000 | 4.625%, 10/15/28 | 919,451 | ||||
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp. | ||||||
1,100,000 | 5.750%, 04/01/25 | 1,082,114 | ||||
1,000,000 | 8.000%, 04/01/29 144A | 1,025,737 | ||||
Global Partners LP/GLP Finance Corp. | ||||||
1,175,000 | 7.000%, 08/01/27 | 1,145,028 | ||||
New Fortress Energy, Inc. | ||||||
3,300,000 | 6.750%, 09/15/25 144A | 3,150,200 | ||||
The Williams Cos, Inc. | ||||||
750,000 | 4.500%, 11/15/23 | 748,126 | ||||
8,070,656 | ||||||
Oil Field Services (3.6%) | ||||||
Transocean Titan Financing Ltd. | ||||||
1,750,000 | 8.375%, 02/01/28 144A | 1,780,625 | ||||
USA Compression Partners LP/USA Compression Finance Corp. | ||||||
1,700,000 | 6.875%, 04/01/26 | 1,665,223 | ||||
3,445,848 | ||||||
Total Energy | 12,577,747 | |||||
Finance Companies (5.5%) | ||||||
Fortress Transportation and Infrastructure Investors LLC | ||||||
1,492,000 | 6.500%, 10/01/25 144A | 1,466,404 | ||||
2,250,000 | 9.750%, 08/01/27 144A | 2,327,265 | ||||
OneMain Finance Corp. | ||||||
1,500,000 | 6.125%, 03/15/24 | 1,495,243 | ||||
5,288,912 | ||||||
Total Finance Companies | 5,288,912 | |||||
AQUILA HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2023
(unaudited)
Principal Amount |
Corporate Bonds (continued) | Value | (a) | |||
Other Financial (2.2%) | ||||||
Credit Acceptance Corp. | ||||||
$1,250,000 | 5.125%, 12/31/24 144A | $1,217,469 | ||||
The Howard Hughes Corp. | ||||||
980,000 | 5.375%, 08/01/28 144A | 863,449 | ||||
2,080,918 | ||||||
Total Other Financial | 2,080,918 | |||||
Other Industrial (1.9%) | ||||||
Tutor Perini Corp. | ||||||
2,000,000 | 6.875%, 05/01/25 144A | 1,828,426 | ||||
REITs (4.9%) | ||||||
Other REITs (4.9%) | ||||||
RHP Hotel Properties LP/RHP Finance Corp. | ||||||
1,000,000 | 4.750%, 10/15/27 | 910,000 | ||||
Rithm Capital Corp. | ||||||
2,163,000 | 6.250%, 10/15/25 144A | 2,052,276 | ||||
XHR LP | ||||||
1,800,000 | 6.375%, 08/15/25 144A | 1,767,222 | ||||
4,729,498 | ||||||
Technology (7.0%) | ||||||
Black Knight InfoServ LLC | ||||||
750,000 | 3.625%, 09/01/28 144A | 671,588 | ||||
Coherent Corp. | ||||||
1,500,000 | 5.000%, 12/15/29 144A | 1,300,560 | ||||
Elastic NV | ||||||
1,000,000 | 4.125%, 07/15/29 144A | 851,656 | ||||
Iron Mountain, Inc. | ||||||
925,000 | 4.875%, 09/15/27 144A | 853,178 | ||||
1,375,000 | 5.250%, 03/15/28 144A | 1,271,157 | ||||
SS&C Technologies, Inc. | ||||||
825,000 | 5.500%, 09/30/27 144A | 778,503 | ||||
Zoominfo Technologies LLC/Zoominfo Finance Corp. | ||||||
1,250,000 | 3.875%, 02/01/29 144A | 1,041,806 | ||||
6,768,448 |
AQUILA HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2023
(unaudited)
Principal Amount |
Corporate Bonds (continued) | Value | (a) | ||||
Transportation (5.9%) | |||||||
Airlines (2.4%) | |||||||
American Airlines, Inc./AAdvantage Loyalty IP Ltd. | |||||||
$1,833,333 | 5.500%, 04/20/26 144A | $1,790,548 | |||||
United Airlines, Inc. | |||||||
500,000 | 4.375%, 04/15/26 144A | 462,395 | |||||
2,252,943 | |||||||
Railroads (2.0%) | |||||||
Watco Cos. LLC/Watco Finance Corp. | |||||||
2,050,000 | 6.500%, 06/15/27 144A | 1,946,885 | |||||
Transportation Services (1.5%) | |||||||
Cargo Aircraft Management, Inc. | |||||||
1,650,000 | 4.750%, 02/01/28 144A | 1,473,078 | |||||
Total Transportation | 5,672,906 | ||||||
Total Corporate Bonds (cost $95,818,975) | 90,870,493 | ||||||
Shares | Short-Term Investment (4.4%) | ||||||
4,241,836 | Dreyfus Treasury Obligations Cash Management - Institutional Shares, 5.23%* (cost $4,241,836) | 4,241,836 | |||||
Total Investments (cost $100,060,811 - note b) | 98.9% | 95,112,329 | |||||
Other assets less liabilities | 1.1 | 1,028,951 | |||||
Net Assets | 100.0% | $ 96,141,280 | |||||
* The rate is an annualized seven-day yield at period end. |
Note: 144A – Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2023, these securities amounted to a value of $70,957,547 or 73.8% of net assets. |
AQUILA HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2023
(unaudited)
Portfolio Distribution | Percent of Investments | |
Aerospace/Defense | 1.6% | |
Airlines | 2.5 | |
Automotive | 4.8 | |
Banking | 2.4 | |
Brokerage/ Asset Managers/ Exchanges | 1.4 | |
Building Materials | 3.1 | |
Cable Satellite | 1.6 | |
Consumer Cyclical Services | 5.5 | |
Diversified Manufacturing | 3.0 | |
Electric | 1.4 | |
Finance Companies | 5.8 | |
Food and Beverage | 2.7 | |
Gaming | 6.2 | |
Healthcare | 1.2 | |
Home Construction | 1.8 | |
Independent | 1.2 | |
Leisure | 4.9 | |
Lodging | 1.4 | |
Metals and Mining | 1.5 | |
Midstream | 8.9 | |
Oil Field Services | 3.8 | |
Other Financial | 2.3 | |
Other Industrial | 2.0 | |
Other REITs | 5.2 | |
Packaging | 1.6 | |
Paper | 1.0 | |
Railroads | 2.1 | |
Restaurants | 1.0 | |
Retailers | 4.2 | |
Supermarkets | 4.8 | |
Technology | 7.5 | |
Transportation Services | 1.6 | |
100.0% |
See accompanying notes to financial statements.
AQUILA HIGH INCOME FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
(unaudited)
(a) Securities valuation policies and other investment related disclosures are hereby incorporated by reference in the annual and semi-annual reports previously filed with the Securities and Exchange Commission on Form N-CSR.
(b) At September 30, 2023 the net unrealized depreciation on investments, based on cost for federal income tax purposes of $100,637,237 amounted to $5,524,908, which consisted of aggregate gross unrealized appreciation of $11,086 and aggregate gross unrealized depreciation of $5,535,994.
(c) Fair Value Measurements: The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s investments and are summarized in the following fair value hierarchy:
Level 1 – Unadjusted quoted prices in inactive markets for identical assets or liabilities that the Fund has the ability to access.
Level 2 – Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of the valuation inputs, representing 100% of the Fund’s investments, used to value the Fund’s net assets as of September 30, 2023:
Valuation Inputs+ | Investments in Securities | ||
Level 1 – Quoted Prices | |||
Short-Term Investment | $ | 4,241,836 | |
Level 2 – Other Significant Observable Inputs: | |||
Corporate Obligations | 90,870,493 | ||
Level 3 – Significant Unobservable Inputs | — | ||
Total | $ | 95,112,329 | |
+See schedule of investments for a detailed listing of securities. |