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 DWA Country Rotation ETF
PORTFOLIO OF INVESTMENTS (Unaudited)
October 31, 2019
Shares				Value
		COMMON STOCKS - 97.8%
		BANKING - 10.5%
1		Banco de Credito e Inversiones SA		$56
20,234		Bangkok Bank PCL		116,599
55,893		Bank Central Asia Tbk PT		125,229
236,703		Bank Mandiri Persero Tbk PT		118,461
402,430		Bank Rakyat Indonesia Persero Tbk PT		120,697
174,565		CTBC Financial Holding Co. Ltd.		121,574
10,900		DNB ASA		198,383
137,798		E.Sun Financial Holding Co. Ltd.		124,713
54,478		Kiatnakin Bank PCL		118,175
63,933		Thanachart Capital Public Company Limited		112,219
36,341		Tisco Financial Group PCL		117,346
				1,273,452
		BIOTECHNOLOGY & PHARMACEUTICALS - 1.1%
750		CSL Limited		132,294
		CHEMICALS - 0.9%
1,675,211		PT Barito Pacific TBK *		113,375
		CONSTRUCTION MATERIALS - 0.9%
81,327		Indocement Tunggal Prakarsa Tbk PT		115,875
		CONSUMER PRODUCTS - 11.5%
320,635		Charoen Pokphand Indonesia Tbk PT		143,905
22,436		China Resources Beer Holdings Co Ltd		115,505
16,091		JBS SA		113,395
136,993		JG Summit Holdings, Inc.		205,847
8,421		Mowi ASA		205,636
13,870		Natura Cosmeticos SA		108,247
21,970		Orkla ASA		211,392
47,000		Uni-President Enterprises Corp		116,108
61,009		Universal Robina Corp		181,542
				1,401,577
		DESIGN, MANUFACTURING, & DISTRIBUTION - 1.0%
30,000		Sinbon Electronics Co. Ltd.		121,220
		ELECTRICAL EQUIPMENT - 1.0%
5,350		Voltronic Power Technology Corp.		118,633
		ENGINEERING & CONSTRUCTION SERVICES - 1.0%
287,188		Tower Bersama Infrastructure Tbk PT		129,405
		GAMING, LODGING, & RESTAURANTS- 1.0%
5,683		Aristocrat Leisure Ltd.		123,802
		HARDWARE - 3.1%
21,000		Accton Technology Corp.		125,211
14,000		Advantech Co. Ltd.		138,664
40,000		Micro-Star International Co., Ltd.		118,264
				382,139
Arrow DWA Country Rotation ETF
PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)
October 31, 2019
Shares				Value
		HEALTH CARE FACILITIES & SERVICES - 4.8%
152,505		Bangkok Dusit Medical Services PCL		$121,216
2,746		Ramsay Health Care Ltd.		129,573
24,124		Ryman Health Care Ltd.		199,727
10,841		Sul America SA		131,921
				582,437
		HOME & OFFICE PRODUCTS - 1.1%
17,293		Techtronic Industries Co., Ltd.		135,693
		INSTITUTIONAL FINANCIAL SERVICES - 3.4%
2,145		ASX Ltd		121,652
4,052		Hong Kong Exchanges & Clearing Ltd		126,662
113,925		Moscow Exchange MICEX-RTS PJSC		168,973
				417,287
		INSURANCE - 3.5%
12,386		AIA Group Ltd.		123,975
9,723		Gjensidige Forsikring ASA		182,044
13,431		IRB Brasil Resseguros SA		126,066
				432,085
		IRON & STEEL - 1.3%
11,281		Severstal PJSC		155,329
		MEDIA - 3.6%
1,627		REA Group Ltd.		121,721
6,549		Schibsted ASA		192,592
8,125		SEEK Ltd		126,956
				441,269
		MEDICAL EQUIPMENT & DEVICES - 1.9%
18,593		Fisher & Paykel Healthcare Corp. Ltd.		228,339
		METALS & MINING - 1.5%
675		MMC Norilsk Nickel PJSC		188,453
		OIL, GAS & COAL - 1.7%
14,535		Tatneft PJSC		169,734
		PASSENGER TRANSPORTATION - 1.0%
20,328		MTR Corp., Ltd.		116,713
		REAL ESTATE - 6.8%
15,346		Charter Hall Group		119,471
12,714		Goodman Group		126,047
24,471		Henderson Land Development Co., Ltd.		122,547
10,654		Link REIT		116,155
296,742		SM Prime Holdings, Inc.		228,061
521,403		Yuexiu Property Co., Ltd.		115,088
				827,369
		RETAIL - CONSUMER STAPLES - 0.9%
44,793		CP All PCL		115,710
Arrow DWA Country Rotation ETF
PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)
October 31, 2019
Shares				Value
		RETAIL - DISCRETIONARY - 6.9%
964,508		Ace Hardware Indonesia TBK PT		$116,123
10,470		B2W Cia Digital *		132,466
209,704		Home Product Center PCL		119,454
10,822		Localiza Rent a Car SA *		115,919
13,624		Magazine Luiza SA		150,684
10,312		SM Investments Corp.		209,309
				843,955
		SEMICONDUCTORS - 2.2%
17,000		Realtek Semiconductor Corp.		126,493
14,000		Taiwan Semiconductor Manufacturing Co., Ltd.		137,284
				263,777
		SOFTWARE - 1.8%
4,594		Xero Ltd. *		218,356
		SPECIALTY FINANCE - 1.0%
84,721		Krungthai Card PCL		116,441
		TELECOMMUNICATIONS - 8.3%
5,503		Globe Telecom, Inc.		197,802
39,897		Mobile TeleSystems PJSC		177,469
72,869		Spark New Zealand Ltd.		209,354
389,746		Telekomunikasi Indonesia Persero Tbk PT		114,117
9,744		Telenor ASA		182,703
490,337		XL Axiata Tbk PT *		124,008
				1,005,453
		TRANSPORTATION & LOGISTICS - 3.8%
49,123		Airports of Thailand PCL		127,302
34,717		Auckland International Airport Ltd.		207,055
21,959		Sydney Airport		132,830
				467,187
		UTILITIES - 10.3%
15,168		APA Group		121,743
34,826		Cia Energetica de Minas Gerais		118,070
20,065		Companhia De Transmissao De Energia Eletrica Paulista		117,709
38,123		Contact Energy Ltd.		180,428
10,527		Electricity Generating PCL		120,976
59,500		Guangdong Investment Ltd.		129,056
59,770		Hong Kong & China Gas Co., Ltd.		116,067
27,795		Manila Electric Co.		185,355
2,330,577		Inter RAO UES PJSC		157,139
				1,246,543
		TOTAL COMMON STOCKS (Cost $11,183,819)		11,883,902
		PREFERRED STOCKS - 2.4%
		INTEGRATED OILS - 1.4%
16,292		Tatneft PJSC		167,570
Arrow DWA Country Rotation ETF
PORTFOLIO OF INVESTMENTS (Unaudited)(Continued)
October 31, 2019
Shares				Value
		POWER GENERATION - 1.0%
11,753		Centrais Eletricas Brasileiras S.A.		$119,948
		TOTAL PREFERRED STOCK (Cost $237,465)		287,518
		TOTAL INVESTMENTS - 100.2% (Cost $11,421,284)		$12,171,420
		LIABILITIES IN EXCESS OF OTHER ASSETS - (0.2)%		(18,172)
		NET ASSETS - 100.0%		$12,153,248
*  Non-Income producing security
ADR - American Depositary Receipt
ASA - Allmennaksjeselskap
ETF - Exchange Traded Fund
PCL - Public Company Limited
PJSC - Private Joint Stock Company
REIT- Real Estate Investment Trust
SA - Société Anonyme
SpA - Società per Azioni

 

 

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	$11,883,902	$-	$-	$11,883,902
Preferred Stocks	287,518	-	-	287,518
Total	$12,171,420	$-	$-	$12,171,420

 

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