QVM Arrow QVM Equity Factor ETF

united states
securities and exchange commission
washington, d.c. 20549

form n-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-22638

 

Arrow Investments Trust

(Exact name of registrant as specified in charter)

 

6100 Chevy Chase Drive Suite 100 Laurel, MD 20707

(Address of principal executive offices) (Zip code)

 

Corporation Service Company

251 Little Falls Drive

Wilmington, Delaware 19808

(Name and address of agent for service)

 

Registrant's telephone number, including area code: 631-470-2619

 

Date of fiscal year end: 7/31

 

Date of reporting period: 10/31/19

 

 

Item 1. Schedule of Investments.

 

 

Arrow Dogs of the World ETF
PORTFOLIO OF INVESTMENTS (Unaudited)
October 31, 2019
Shares					Value
		COMMON STOCKS - 98.1%
		AEROSPACE & DEFENSE - 0.6%
7,903		Aselsan Elektronik Sanayi Ve Ticaret AS			$25,386
		APPAREL & TEXTILE PRODUCTS - 0.2%
15,089		Nishat Mills Ltd.			8,174
		AUTOMOTIVE - 0.5%
1,897		Ford Otomotiv Sanayi AS			21,419
		BANKING - 31.9%
81,699		Akbank TAS			98,825
42,158		Allied Bank Ltd.			24,335
67,461		Alpha Bank AE *			143,827
2,292		Banco Macro SA - ADR			52,487
46,037		Bank Al Habib Ltd.			20,418
78,828		Bank Alfalah Ltd.			21,031
10,419		BBVA Banco Frances SA - ADR			36,467
143,801		Eurobank Ergasias SA *			145,672
313		Grupo Elektra SAB DE CV			22,815
16,672		Grupo Financiero Banorte SAB de CV			91,465
3,988		Grupo Financiero Galicia SA			46,101
16,015		Grupo Financiero Inbursa SAB de CV			19,990
12,515		Grupo Supervielle SA			34,041
28,976		Habib Bank Ltd.			23,835
38,484		Habib Metropolitan Bank Ltd.			7,697
34,391		Haci Omer Sabanci Holding AS			49,788
40,142		ICBC Turkey Bank Anonim Sirketi *			30,005
28,177		MCB Bank Ltd.			31,304
60,669		National Bank of Greece SA *			205,764
93,327		National Bank of Pakistan			21,401
43,614		Piraeus Bank SA *			152,300
50,604		Turkiye Garanti Bankasi AS			81,497
32,483		Turkiye Is Bankasi			32,980
21,306		United Bank Ltd.			18,842
					1,412,887
		BIOTECHNOLOGY & PHARMACEUTICAL - 0.4%
3,467		Abbott Laboratories Pakistan Ltd.			7,018
9,015		Searle Co. Ltd.			10,029
					17,047
		CHEMICALS - 3.4%
23,750		Engro Corp. Ltd.			45,208
55,963		Engro Fertilizers Ltd.			25,652
76,642		Fatima Fertilizer Co. Ltd.			12,761
51,107		Fauji Fertilizer Co. Ltd.			30,937
3,121		ICI Pakistan Ltd.			10,433
1		International Flavors & Fragrances, Inc.			73
5,609		Mexichem SAB de CV			12,182
26,003		Petkim Petrokimya Holding A.S.			15,659
					152,905
Arrow Dogs of the World ETF
PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)
October 31, 2019
Shares					Value
		CONSTRUCTION MATERIALS - 3.8%
24,303		Bestway Cement Ltd.			$13,380
83,188		Cemex SAB DE CV *			31,371
20,695		DG Khan Cement Co. Ltd.			7,920
8,195		Loma Negra Cia Industrial Argentina SA * - ADR			48,760
10,988		Lucky Cement Ltd.			24,838
1,964		Titan Cement International SA *			41,632
					167,901
		CONSUMER PRODUCTS - 4.9%
5,505		Arca Continental SAB de CV			30,873
3,235		Coca-Cola Femsa SAB de CV			17,859
13,400		Fomento Economico Mexicano SAB de CV			119,511
32,330		Frieslandcampina Engro Pakistan Ltd. *			13,718
1,247		Gruma SAB de CV			13,092
12,515		Grupo Bimbo SAB de CV			23,435
					218,488
		DISTRIBUTORS - DISCRETIONARY - 0.4%
3,330		Indus Motor Company Ltd.			19,953
		ENGINEERING & CONSTRUCTION SERVICES - 2.2%
8,629		GEK Terna Holding Real Estate Construction SA*			65,656
2,122		Promotora y Operadora de Infraestructura SAB de CV			19,683
4,689		Tekfen Holding AS			13,913
					99,252
		IRON & STEEL - 0.9%
34,124		Eregli Demir ve Celik Fabrikalari TAS			39,067
		MEDIA - 1.0%
20,575		Grupo Televisa SAB			45,621
		METALS & MINING - 8.3%
21,446		Grupo Mexico SAB de CV			56,814
4,589		Mytilineos Holdings SA			50,224
7,649		Pan American Silver Corp.			130,185
8,879		SSR Mining, Inc. *			131,596
					368,819
		OIL, GAS & COAL - 12.9%
6,382		Hellenic Petroleum SA			60,129
28,726		KOC Holding AS			94,185
2,244		Motor Oil Hellas Corinth Refineries SA			55,428
27,065		Oil & Gas Development Co. Ltd.			22,405
12,462		Pakistan Oilfields Ltd.			31,409
112,758		Pakistan Petroleum Ltd.			83,371
21,262		Pakistan State Oil Co. Ltd.			21,052
5,693		Transportadora de Gas del Sur SA - ADR			43,039
3,084		Tupras Turkiye Petrol Rafinerileri AS			67,213
10,242		YPF SA - ADR			95,865
					574,096
Arrow Dogs of the World ETF
PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)
October 31, 2019
Shares					Value
		PASSENGER TRANSPORTATION - 0.8%
17,306		Turk Hava Yollari AO *			$35,263
		REAL ESTATE - 0.6%
16,918		Fibra Uno Administracion SA de CV			25,802
		RETAIL - CONSUMER STAPLES - 5.0%
10,840		BIM Birlesik Magazalar AS			89,793
12,485		Grupo Carso SAB de CV			41,808
30,077		Wal-Mart de Mexico SAB de CV			90,441
					222,042
		RETAIL - DISCRETIONARY - 1.5%
3,427		Jumbo SA			66,908
		TELECOMMUNICATIONS - 10.4%
161,573		America Movil SAB de CV			128,352
11,044		Hellenic Telecommunications Organization SA			167,569
5,337		MegaCable Holdings SAB DE CV			21,983
9,160		Telecom Argentina SA - ADR			82,440
27,318		Turkcell Iletisim Hizmetleri AS			60,111
					460,455
		TRANSPORTATION & LOGISTICS - 1.5%
22,049		GMexico Transportes SAB de CV			29,453
1,760		Grupo Aeroportuario del Pacifico SAB de CV			18,510
4,094		TAV Havalimanlari Holding AS			18,691
					66,654
		UTILITIES - 6.9%
5,329		Athens Water Supply & Sewage Co SA			47,265
9,102		Central Puerto SA - ADR			29,308
3,049		Empresa Distribuidora Y Comercializadora Norte * - ADR			16,648
36,299		Enka Insaat ve Sanayi AS			36,664
54,286		Hub Power Co. Ltd.			25,260
1,026,296		K-Electric Ltd. *			24,412
35,526		Kot Addu Power Co. Ltd.			7,014
3,612		Pampa Energia SA *			56,239
25,977		SUI Northern Gas Pipeline *			11,196
6,131		Terna Energy SA			50,069
					304,075
		TOTAL COMMON STOCKS (Cost $4,665,999)			4,352,214
		TOTAL INVESTMENTS - 98.1% (Cost $4,665,999)			$4,352,214
		OTHER ASSETS LESS LIABILITIES - 1.9%			82,289
		NET ASSETS - 100.0%			$4,434,503
* Non-Income Producing Security
ADR - American Depositary Receipt
AE - Athens Exchange
AO - Anonim Ortakligi
AS - Anonim Sirketi
SA - Société Anonyme
SA de CV - Sociedad Anonima de Capital Variabe
SAB de CV - Sociedad Anonima Bursatil de Capital Variable
TAS - Turkish Accounting Standards

 

The following is a summary of significant accounting policies followed by the Fund in preparation of its financial statements.  The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).  The 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” including FASB Accounting Standard Update ("ASU") 2013-08.
Securities Valuation - Securities listed on an exchange are valued at the last reported sale price at the close of the regular trading session of the exchange on the business day the value is being determined, or in the case of securities listed on NASDAQ at the NASDAQ Official Closing Price (“NOCP”).  In the absence of a sale such securities shall be valued at the last bid price on the day of valuation. Options contracts listed on a securities exchange or board of trade  for which market quotations are readily available shall be valued at the last quoted sales price or, in the absence of a sale, at the last reported bid price on the valuation date.   Index options and options not listed on a security exchange or board of trade shall be valued at the last reported bid price on the valuation date. Debt securities (other than short-term obligations) are valued each day by an independent pricing service approved by the Board of Trustees (the “Board”) based on methods which include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type, indications as to values from dealers, and general market conditions or market quotations from a major market maker in the securities. Investments valued in currencies other than the U.S. dollar are converted to U.S. dollars using exchange rates obtained from pricing services. Short-term debt obligations having 60 days or less remaining until maturity, at time of purchase, may be valued at amortized cost.  Investments in open-end investment companies are valued at net asset value.
Exchange Traded Funds – The Fund may invest in exchange traded funds (“ETFs”).  ETFs are a type of fund bought and sold on a securities exchange.  An ETF trades like common stock and represents a fixed portfolio of securities designed to track the performance and dividend yield of a particular domestic or foreign market index. A Fund may purchase an ETF to temporarily gain exposure to a portion of the U.S. or a foreign market while awaiting purchase of underlying securities.  The risks of owning an ETF generally reflect the risks of owning the underlying securities in which it invests, although the lack of liquidity on an ETF could result in it being more volatile.  Additionally, ETFs have fees and expenses that reduce their value.
The Fund utilizes various methods to measure the fair value of all of its investments on a recurring basis.  GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:
Level 1 – Unadjusted quoted prices in active markets for identical assets and 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 in 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 availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment.  Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy.  In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.  The following table summarizes the inputs used as of October 31, 2019 for the Fund’s assets and liabilities measured at fair value:

 

Assets *	Level 1	Level 2	Level 3	Total
Common Stocks	$4,352,214	$-	$-	$4,352,214
Total	$4,352,214	$-	$-	$4,352,214

 

The Fund did not hold any Level 3 securities during the period.
* See Portfolio of Investments for Industry classification.
Aggregate Unrealized Appreciation and Depreciation - Tax Basis

 

 

 

 

Item 2. Controls and Procedures.

 

(a)       The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

 

(b)       There were no significant changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

 

Certifications required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) (and Item 3 of Form N-Q) are filed herewith.

 

 

 

 

SIGNATURES

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

 

(Registrant) Arrow Investments Trust

 

By (Signature and Title)

*/s/ Joseph Barrato

Joseph Barrato, Principal Executive Officer/President

 

Date 12/27/2019

 

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 (Signature and Title)

*/s/ Joseph Barrato

Joseph Barrato, Principal Executive Officer/President

 

Date 12/27/2019

 

By (Signature and Title)

*/s/ Sam Singh

Sam Singh, Principal Financial Officer/Treasurer

 

Date 12/27/2019