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: 1/31

 

Date of reporting period: 10/31/19

 

 

Item 1. Schedule of Investments.

 

 

Arrow QVM Equity Factor ETF
PORTFOLIO OF INVESTMENTS (Unaudited)
October 31, 2019
Shares				Value
		COMMON STOCKS - 99.7%
		ASSET MANAGEMENT - 6.0%
568		Ameriprise Financial, Inc.		$85,706
2,722		Federated Investors, Inc.		86,941
1,047		LPL Financial Holdings, Inc.		84,639
				257,286
		AUTOMOTIVE - 4.0%
3,060		Gentex Corp.		85,833
1,589		Magna International, Inc.		85,441
				171,274
		BANKING - 10.0%
1,151		Bank of Montreal		85,162
687		JPMorgan Chase & Co.		85,820
1,067		Royal Bank of Canada		86,064
1,512		Toronto-Dominion Bank		86,290
1,512		US Bancorp		86,214
				429,550
		BIOTECHNOLOGY & PHARMACEUTICALS - 6.1%
1,084		AbbVie, Inc.		86,232
410		Amgen, Inc.		87,433
1,003		Merck & Co., Inc.		86,920
				260,585
		CHEMICALS - 2.0%
942		LyondellBasell Industries NV		84,497
		COMMERCIAL SERVICES - 4.0%
3,439		H&R Block, Inc.		85,941
937		ManpowerGroup, Inc.		85,192
				171,133
		DISTRIBUTORS - DISCRETIONARY - 2.0%
3,421		KAR Auction Services, Inc.		85,046
		ELECTRONIC EQUIPMENT - 2.0%
348		Lennox International, Inc.		86,081
		GAMING, LODGING & RESTAURANTS - 5.9%
1,856		Brinker International, Inc.		82,499
439		McDonald's Corp.		86,351
1,834		Wyndham Destinations, Inc.		85,116
				253,966
		HARDWARE - 4.1%
355		Apple, Inc.		88,310
1,816		Cisco Systems, Inc.		86,278
				174,588
Arrow QVM Equity Factor ETF
PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)
October 31, 2019
Shares				Value
		HEALTH CARE FACILITIES & SERVICES - 2.0%
641		HCA Healthcare, Inc.		$85,599
		IRON & STEEL - 2.0%
3,784		Mesabi Trust **		84,270
		MACHINERY - 5.8%
831		Dover Corp.		86,333
968		Oshkosh Corp.		82,648
445		Parker-Hannifin Corp.		81,653
				250,634
		MEDIA - 2.0%
1,117		Omnicom Group, Inc.		86,221
		OIL, GAS, & COAL - 6.0%
6,148		Advanced Emissions Solutions, Inc.		85,027
7,889		Alliance Resource Partners LP		89,935
1,053		Arch Coal, Inc.		83,071
				258,033
		RETAIL - CONSUMER STAPLES - 4.0%
800		Target Corp.		85,528
1,546		Walgreens Boots Alliance, Inc.		84,690
				170,218
		RETAIL - DISCRETIONARY - 9.9%
2,192		Dick's Sporting Goods, Inc.		85,335
850		Group 1 Automotive, Inc.		84,524
366		Home Depot, Inc.		85,856
548		Lithia Motors, Inc.		86,299
1,275		Williams-Sonoma, Inc.		85,157
				427,171
		SEMICONDUCTOR - 2.0%
311		Lam Research Corp.		84,293
		SOFTWARE - 2.0%
1,575		Oracle Corp.		85,822
		SPECIALTY FINANCE - 8.0%
3,215		Aircastle Ltd.		87,512
1,065		Discover Financial Services		85,477
3,334		Santander Consumer USA Holdings, Inc.		83,617
2,427		Synchrony Financial		85,843
				342,449
		TECHNOLOGY SERVICES - 4.0%
678		CDW Corp.		86,723
639		International Business Machines Corp.		85,453
				172,176
Arrow QVM Equity Factor ETF
PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)
October 31, 2019
Shares				Value
		TELECOMMUNICATIONS - 2.0%
1,812		BCE, Inc.		$85,979
		TRANSPORTATION EQUIPMENT -  3.9%
1,857		Allison Transmission Holdings, Inc.		80,984
495		Cummins, Inc.		85,378
				166,362
		TOTAL COMMON STOCKS (Cost - $3,968,274)		4,273,233
		TOTAL INVESTMENTS - 99.7% (Cost $3,968,274)		$4,273,233
		OTHER ASSETS LESS LIABILITIES - 0.3%		14,529
		NET ASSETS - 100.0%		$4,287,762
** Royalty Trust.
LP - Limited Partnership
NV - Naamloze Vennootschap
PLC - Public Limited Company

 

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. If market quotations are not readily available or if the Advisor believes the market quotations are not reflective of market value, securities will be valued at their fair value as determined in good faith by the Trust’s Fair Value Committee and in accordance with the Trust’s Portfolio Securities Valuation Procedures (the “Procedures”).  The Board will review the fair value method in use for securities requiring a fair value determination at least quarterly. The Procedures consider, among others, the following factors to determine a security’s fair value: the nature and pricing history (if any) of the security; whether any dealer quotations for the security are available; and possible valuation methodologies that could be used to determine the fair value of the security.  Fair value may also be used by the Board if extraordinary events occur after the close of the relevant world market but prior to the NYSE close. Short-term debt obligations having 60 days or less remaining until maturity, at time of purchase, may be valued at amortized cost.
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 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	$4,273,233	$-	$-	$4,273,233
Total	$4,273,233	$-	$-	$4,273,233

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