|
|
|
|
|
|
Arrow Dow Jones Global Yield ETF
|
|
PORTFOLIO OF INVESTMENTS
|
|
October 31, 2012 (Unaudited)
|
|
Shares
|
|
|
|
Value
|
|
|
|
|
|
|
|
|
|
COMMON STOCKS - 58.8%
|
|
|
|
|
APPAREL - 0.4%
|
|
|
102,249
|
|
Billabong International Ltd.
|
|
$ 93,748
|
|
|
|
|
|
|
|
|
AUTO MANUFACTURERS - 0.7%
|
|
|
14,672
|
|
Ford Otomotiv Sanayi A.S.
|
|
150,423
|
|
|
|
|
|
|
|
|
BANKS - 0.7%
|
|
|
5,341
|
|
National Australia Bank Ltd.
|
|
142,703
|
|
|
|
|
|
|
|
|
CHEMICALS - 1.3%
|
|
|
5,329
|
|
CVR Partners LP
|
|
144,096
|
|
652
|
|
Terra Nitrogen Co. LP
|
|
139,991
|
|
|
|
|
284,087
|
|
|
|
COAL - 0.7%
|
|
|
6,651
|
|
Natural Resource Partners LP
|
|
145,191
|
|
|
|
|
|
|
|
|
COMMERCIAL SERVICES - 1.4%
|
|
|
121,295
|
|
Hays PLC
|
|
159,167
|
|
6,150
|
|
Stonemor Partners LP
|
|
142,926
|
|
|
|
|
302,093
|
|
|
|
DISTRIBUTION & WHOLESALE - 0.7%
|
|
|
5,450
|
|
Global Partners LP
|
|
148,567
|
|
|
|
|
|
|
|
|
DIVERSIFIED FINANCIAL SERVICES - 0.7%
|
|
|
6,362
|
|
Provident Financial PLC
|
|
140,540
|
|
|
|
|
|
|
|
|
ELECTRIC - 1.3%
|
|
|
6,340
|
|
CPFL Energia SA - ADR
|
|
147,659
|
|
3,112
|
|
RWE AG
|
|
142,310
|
|
|
|
|
289,969
|
|
|
|
ENGINEERING & CONSTRUCTION - 0.7%
|
|
|
42,675
|
|
Sydney Airport
|
|
149,876
|
|
|
|
|
|
|
|
|
ENTERTAINMENT - 0.7%
|
|
|
4,248
|
|
Cedar Fair LP
|
|
152,291
|
|
|
|
|
|
|
|
|
INSURANCE - 0.7%
|
|
|
18,525
|
|
Catlin Group Ltd.
|
|
140,545
|
|
|
|
|
|
|
|
|
INVESTMENT COMPANIES - 0.7%
|
|
|
7,023
|
|
Chesapeake Granite Wash Trust
|
|
143,129
|
|
|
|
|
|
|
|
|
MINING - 1.3%
|
|
|
2,957
|
|
KGHM Polska Miedz S.A.
|
|
149,242
|
|
15,624
|
|
Oxford Resource Partners LP
|
|
129,992
|
|
|
|
|
279,234
|
|
|
|
OIL & GAS - 5.2%
|
|
|
7,303
|
|
BreitBurn Energy Partners LP
|
|
147,228
|
|
4,521
|
|
Calumet Specialty Products Partners LP
|
|
143,406
|
|
4,909
|
|
Legacy Reserves LP
|
|
133,476
|
|
3,421
|
|
Linn Energy LLC
|
|
144,093
|
|
7,334
|
|
QR Energy LP
|
|
140,446
|
|
5,765
|
|
SandRidge Mississippian Trust I
|
|
114,724
|
|
7,021
|
|
SandRidge Permian Trust
|
|
134,453
|
|
3,457
|
|
Suburban Propane Partners LP
|
|
148,651
|
|
|
|
|
1,106,477
|
|
|
|
OIL & GAS SERVICES - 1.3%
|
|
|
6,440
|
|
Exterran Partners LP
|
|
144,771
|
|
7,128
|
|
PAA Natural Gas Storage LP
|
|
140,208
|
|
|
|
|
284,979
|
|
|
|
PIPELINES - 4.5%
|
|
|
6,094
|
|
Cheniere Energy Partners LP
|
|
129,558
|
|
4,371
|
|
Copano Energy LLC
|
|
133,315
|
|
3,326
|
|
Energy Transfer Partners LP
|
|
142,353
|
|
5,614
|
|
PVR Partners LP
|
|
141,922
|
|
3,365
|
|
Targa Resources Partners LP
|
|
140,926
|
|
3,130
|
|
TC Pipelines LP
|
|
137,720
|
|
3,710
|
|
Transmontaigne Partners LP
|
|
131,928
|
|
|
|
|
957,722
|
|
|
|
REAL ESTATE - 3.9%
|
|
|
194,428
|
|
Argosy Property Ltd.
|
|
145,933
|
|
109,908
|
|
Capital Property Fund
|
|
126,062
|
|
144,940
|
|
Fountainhead Property Trust
|
|
133,095
|
|
322,424
|
|
SA Corporate Real Estate Fund Nominees Pty Ltd.
|
130,806
|
|
621,064
|
|
Shenzhen Investment Ltd.
|
|
165,081
|
|
44,918
|
|
Sycom Property Fund
|
|
133,911
|
|
|
|
|
834,888
|
|
|
|
REITS - 16.9%
|
|
|
69,162
|
|
Abacus Property Group
|
|
149,036
|
|
8,551
|
|
Artis Real Estate Investment Trust
|
|
139,014
|
|
48,591
|
|
Astro Japan Property Group
|
|
163,606
|
|
68,639
|
|
BWP Trust
|
|
148,620
|
|
270,000
|
|
Cambridge Industrial Trust
|
|
147,112
|
|
25,690
|
|
Cedar Realty Trust, Inc.
|
|
135,900
|
|
69,226
|
|
CFS Retail Property Trust Group
|
|
140,209
|
|
39,772
|
|
Charter Hall Retail REIT
|
|
149,570
|
|
9,781
|
|
CommonWealth REIT
|
|
134,098
|
|
3,260
|
|
Corio NV
|
|
145,356
|
|
1,860
|
|
Fonciere Des Regions
|
|
149,630
|
|
150,000
|
|
Frasers Commercial Trust
|
|
153,011
|
|
164,980
|
|
Goodman Property Trust
|
|
143,453
|
|
5,916
|
|
Hospitality Properties Trust
|
|
136,778
|
|
46,853
|
|
Investa Office Fund
|
|
144,163
|
|
39
|
|
Kenedix Realty Investment Corp. - Cl. A
|
|
133,323
|
|
157,197
|
|
Kiwi Income Property Trust
|
|
150,870
|
|
155,000
|
|
Mapletree Logistics Trust
|
|
140,967
|
|
510,360
|
|
Prosperity REIT
|
|
146,192
|
|
6,481
|
|
Senior Housing Properties Trust
|
|
142,452
|
|
226,000
|
|
Starhill Global REIT
|
|
145,358
|
|
3,177
|
|
Sun Communities, Inc.
|
|
133,370
|
|
117,000
|
|
Suntec Real Estate Investment Trust
|
|
153,859
|
|
3,278
|
|
Vastned Retail NV
|
|
151,963
|
|
13,397
|
|
Westfield Group
|
|
147,953
|
|
|
|
|
3,625,863
|
|
|
|
RETAIL - 2.0%
|
|
|
54,604
|
|
David Jones Ltd.
|
|
151,041
|
|
7,347
|
|
Ferrellgas Partners LP
|
|
132,466
|
|
7,430
|
|
Inergy LP
|
|
148,600
|
|
|
|
|
432,107
|
|
|
|
TELECOMMUNICATIONS - 11.0%
|
|
|
5,120
|
|
Bell Aliant Inc.
|
|
138,692
|
|
237,798
|
|
Cable & Wireless Communications PLC
|
|
143,541
|
|
3,467
|
|
CenturyLink, Inc.
|
|
133,063
|
|
11,257
|
|
Deutsche Telekom AG
|
|
128,624
|
|
11,311
|
|
France Telecom SA
|
|
126,204
|
|
17,735
|
|
Koninklijke KPN NV
|
|
112,053
|
|
8,977
|
|
KTC Corp.
|
|
152,160
|
|
61,601
|
|
Magyar Telekom Telecommunications PLC - ADR
|
113,998
|
|
8,037
|
|
Mobile Telesystems OJSC
|
|
137,754
|
|
3,485
|
|
Mobistar SA
|
|
92,261
|
|
47,000
|
|
StarHub Ltd.
|
|
141,712
|
|
68,873
|
|
Telecom Corp. of New Zealand Ltd.
|
|
135,874
|
|
6,814
|
|
Telefonica Czech Republic AS
|
|
135,847
|
|
10,139
|
|
Telefonica SA
|
|
133,617
|
|
26,892
|
|
Telekomunikacja Polska SA
|
|
101,795
|
|
34,766
|
|
Telstra Corp., Ltd.
|
|
149,113
|
|
7,032
|
|
Vivendi SA
|
|
143,978
|
|
11,772
|
|
VTech Holdings Ltd.
|
|
139,819
|
|
|
|
|
2,360,105
|
|
|
|
TRANSPORTATION - 2.0%
|
|
|
17,461
|
|
Capital Product Partners LP
|
|
139,688
|
|
4,109
|
|
Martin Midstream Partners LP
|
|
146,650
|
|
9,495
|
|
Navios Maritime Partners LP
|
|
147,647
|
|
|
|
|
433,985
|
|
|
|
|
|
|
|
|
|
TOTAL COMMON STOCKS
(Cost $12,346,633)
|
12,598,522
|
|
Principal ($)
|
|
|
|
|
|
|
|
BONDS & NOTES - 39.2%
|
|
|
|
|
AUTO PARTS & EQUIPMENT - 0.6%
|
|
|
$ 127,000
|
|
Goodyear Tire & Rubber Co., 7.00%, due 5/15/2022
|
133,191
|
|
|
|
|
|
|
|
|
|
BANKS - 0.7%
|
|
|
120,000
|
|
Ally Financial, Inc., 8.00%, due 3/15/2020
|
|
143,112
|
|
|
|
|
|
|
|
|
|
BUILDING MATERIALS - 0.7%
|
|
|
132,000
|
|
Griffon Corp., 7.125%, due 4/1/2018
|
|
139,260
|
|
|
|
|
|
|
|
|
COAL - 1.3%
|
|
|
134,000
|
|
CONSOL Energy, Inc., 8.00%, due 4/1/2017
|
141,705
|
|
134,000
|
|
CONSOL Energy, Inc., 8.25%, due 4/1/2020
|
142,040
|
|
|
|
|
|
283,745
|
|
|
|
COMMERCIAL SERVICES - 1.3%
|
|
|
138,000
|
|
Iron Mountain, Inc., 5.75%, due 8/15/2024
|
137,655
|
|
138,000
|
|
RR Donnelley & Sons Co., 7.25%, due 5/15/2018
|
137,138
|
|
|
|
|
274,793
|
|
|
|
ELECTRIC - 1.3%
|
|
|
124,000
|
|
AES Corp., 7.375%, due 7/1/2021
|
|
138,570
|
|
126,000
|
|
NRG Energy Inc., 7.875%, due 5/15/2021
|
|
137,970
|
|
|
|
|
276,540
|
|
|
|
FOOD - 0.7%
|
|
|
134,000
|
|
Smithfield Foods, Inc., 6.625%, due 8/15/2022
|
|
140,365
|
|
|
|
|
|
|
|
|
|
FOREST PRODUCTS & PAPER - 0.6%
|
|
|
132,000
|
|
Cascades Inc., 7.75%, due 12/15/2017
|
|
139,260
|
|
|
|
|
|
|
|
|
HEALTHCARE SERVICES - 0.6%
|
|
|
131,000
|
|
Apria Healthcare Group Inc., 11.25%, due 11/1/2014
|
134,930
|
|
|
|
|
|
|
|
|
|
IRON & STEEL - 1.3%
|
|
|
132,000
|
|
Commercial Metals Co., 7.35%, due 8/15/2018
|
141,900
|
|
142,000
|
|
United States Steel Corp, 7.375%, due 4/1/2020
|
142,710
|
|
|
|
|
|
284,610
|
|
|
|
MEDIA - 0.7%
|
|
|
|
126,000
|
|
Dish DBS Corp., 6.75%, due 6/1/2021
|
|
140,333
|
|
|
|
|
|
|
|
|
|
MINING - 1.3%
|
|
|
128,000
|
|
Aleris International, Inc., 7.625%, due 2/15/2018
|
129,920
|
|
122,000
|
|
Vulcan Materials Co., 7.50% due 6/15/2021
|
|
137,860
|
|
|
|
|
267,780
|
|
|
|
MISCELLANEOUS MANUFACTURERS - 0.6%
|
|
|
131,000
|
|
Polymer Group Inc., 7.75%, due 2/1/2019
|
|
140,170
|
|
|
|
|
|
|
|
|
OIL & GAS - 3.3%
|
|
|
136,000
|
|
QEP Resources, Inc., 5.25%, due 5/1/2023
|
141,780
|
|
152,940
|
|
Petroleos De Venezuela S.A., 4.90%, due 10/28/2014
|
141,852
|
|
163,015
|
|
Petroleos De Venezuela S.A., 5.00%, due 10/28/2015
|
142,638
|
|
136,000
|
|
Plains Exploration & Production, 6.125%, due 6/15/2019
|
|
135,660
|
|
130,000
|
|
Precision Drilling Corp., 6.625%, due 11/15/2020
|
|
139,100
|
|
|
|
|
|
701,030
|
|
|
|
PIPELINES - 0.6%
|
|
|
120,000
|
|
Energy Transfer Equity LP, 7.50%, due 10/15/2020
|
|
136,500
|
|
|
|
|
|
|
|
|
|
RETAIL - 1.3%
|
|
|
128,000
|
|
AmeriGas Finance Corp., 6.75%, due 5/20/2020
|
137,600
|
|
126,000
|
|
AmeriGas Finance Corp., 7.00%, due 5/20/2022
|
136,868
|
|
|
|
|
|
274,468
|
|
|
|
SEMICONDUCTORS - 0.5%
|
|
|
136,000
|
|
Advanced Micro Devices, Inc., 7.750% due 8/1/2020
|
112,540
|
|
|
|
|
|
|
|
|
|
SOVEREIGN - 19.9%
|
|
|
166,000
|
|
Hungary Government International Bond, 4.75%, due 2/3/2015
|
169,943
|
|
154,000
|
|
Hungary Government International Bond, 6.25%, due 1/29/2020
|
170,601
|
|
154,000
|
|
Hungary Government International Bond, 6.375%, due 3/29/2021
|
171,525
|
|
148,000
|
|
Hungary Government International Bond, 7.625%, due 3/29/2041
|
175,824
|
|
125,000
|
|
Irish Government Bond, 5.00%, due 10/18/2020
|
164,427
|
|
126,000
|
|
Irish Government Bond, 5.40%, due 3/13/2025
|
166,588
|
|
142,000
|
|
Italy Buoni Poliennali Del Tres, 4.50%, due 3/1/2026
|
174,242
|
|
135,000
|
|
Italy Buoni Poliennali Del Tres, 4.00%, due 9/1/2020
|
171,729
|
|
124,000
|
|
Italy Buoni Poliennali Del Tres, 4.75%, due 5/1/2017
|
167,934
|
|
125,000
|
|
Italy Buoni Poliennali Del Tres, 5.50%, due 9/1/2022
|
170,261
|
|
152,000
|
|
Mexican Government International Bond, 4.75%, due 3/8/2044
|
168,720
|
|
120,000
|
|
Panama Government International Bond, 6.70%, due 1/26/2036
|
|
170,820
|
|
181,000
|
|
Portugal Obrigacoes Do Tesouro OT, 3.85%, due 4/15/2021
|
175,448
|
|
231,000
|
|
Portugal Obrigacoes Do Tesouro OT, 4.10%, due 4/15/2037
|
183,817
|
|
143,000
|
|
Portugal Obrigacoes Do Tesouro OT, 4.35%, due 10/16/2017
|
170,755
|
|
125,000
|
|
Portugal Obrigacoes Do Tesouro OT, 6.40%, due 2/15/2016
|
163,119
|
|
166,000
|
|
Portugal Obrigacoes Do Tesouro OT, 4.80%, due 6/15/2020
|
174,946
|
|
130,000
|
|
Spain Government Bond, 4.00%, due 7/30/2015
|
170,813
|
|
141,000
|
|
Spain Government Bond, 4.00%, due 4/30/2020
|
169,657
|
|
129,000
|
|
Spain Government Bond, 4.25%, due 10/31/2016
|
167,845
|
|
126,000
|
|
Spain Government Bond, 5.85%, due 1/31/2022
|
165,865
|
|
136,000
|
|
Spain Government Bond, 5.90%, due 7/30/2026
|
171,613
|
|
208,000
|
|
Venezuela Government International Bond, 7.65%, due 4/21/2025
|
163,800
|
|
162,000
|
|
Venezuela Government International Bond, 8.50%, due 10/8/2014
|
164,430
|
|
154,000
|
|
Venezuela Government International Bond, 13.625%, due 8/15/2018
|
170,170
|
|
|
|
|
|
4,254,892
|
|
|
|
TELECOMMUNICATIONS - 1.9%
|
|
|
121,000
|
|
Frontier Communications Corp., 8.50%, due 4/15/2020
|
139,755
|
|
130,000
|
|
Hughes Satellite Systems Corp., 6.50%, due 6/15/2019
|
139,100
|
|
164,000
|
|
Nokia OYJ, 5.375%, due 5/15/2019
|
|
136,246
|
|
|
|
|
|
415,101
|
|
|
|
|
|
|
|
|
|
TOTAL BONDS & NOTES
(Cost $8,086,346)
|
8,392,620
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS - 98.0%
(Cost $20,432,979)(a)
|
20,991,142
|
|
|
|
OTHER ASSETS LESS LIABILITIES - 2.0%
|
418,451
|
|
|
|
NET ASSETS - 100.0%
|
$ 21,409,593
|
|
|
|
|
|
|
|
(a) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is substantially the same and differs from market value by net unrealized appreciation (depreciation) of securities as follows:
|
|
|
|
|
|
|
|
Unrealized Appreciation:
|
$ 983,702
|
|
Unrealized Depreciation:
|
(425,539)
|
|
Net Unrealized Appreciation:
|
$ 558,163
|
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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”).
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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, are valued at amortized cost. Investments in open-end investment companies are valued at net asset value.
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A Fund may hold securities, such as private placements, interests in commodity pools, other non-traded securities or temporarily illiquid securities, for which market quotations are not readily available or are determined to be unreliable. These securities will be valued at their fair market value as determined using the “fair value” procedures approved by the Board. The Board has delegated execution of these procedures to a fair value team composed of one or more officers from each of the (i) Trust, (ii) administrator, and (iii) adviser and/or sub-adviser. The team may also enlist third party consultants such as an audit firm or financial officer of a security issuer on an as-needed basis to assist in determining a security-specific fair value. The Board reviews and ratifies the execution of this process and the resultant fair value prices at least quarterly to assure the process produces reliable results.
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Fair Value Team and Valuation Process - This team is composed of one or more officers from each of the (i) Trust, (ii) administrator, and (iii) adviser and/or sub-adviser. The applicable investments are valued collectively via inputs from each of these groups. For example, fair value determinations are required for the following securities: (i) securities for which market quotations are insufficient or not readily available on a particular business day (including securities for which there is a short and temporary lapse in the provision of a price by the regular pricing source), (ii) securities for which, in the judgment of the adviser or sub-adviser, the prices or values available do not represent the fair value of the instrument. Factors which may cause the adviser or sub-adviser to make such a judgment include, but are not limited to, the following: only a bid price or an asked price is available; the spread between bid and asked prices is substantial; the frequency of sales; the thinness of the market; the size of reported trades; and actions of the securities markets, such as the suspension or limitation of trading; (iii) securities determined to be illiquid; (iv) securities with respect to which an event that will affect the value thereof has occurred (a “significant event”) since the closing prices were established on the principal exchange on which they are traded, but prior to a Fund’s calculation of its net asset value. Specifically, interests in commodity pools or managed futures pools are valued on a daily basis by reference to the closing market prices of each futures contract or other asset held by a pool, as adjusted for pool expenses. Restricted or illiquid securities, such as private placements or non-traded securities are valued via inputs from the adviser or sub-adviser based upon the current bid for the security from two or more independent dealers or other parties reasonably familiar with the facts and circumstances of the security (who should take into consideration all relevant factors as may be appropriate under the circumstances). If the adviser or sub-adviser is unable to obtain a current bid from such independent dealers or other independent parties, the fair value team shall determine the fair value of such security using the following factors: (i) the type of security; (ii) the cost at date of purchase; (iii) the size and nature of the Fund's holdings; (iv) the discount from market value of unrestricted securities of the same class at the time of purchase and subsequent thereto; (v) information as to any transactions or offers with respect to the security; (vi) the nature and duration of restrictions on disposition of the security and the existence of any registration rights; (vii) how the yield of the security compares to similar securities of companies of similar or equal creditworthiness; (viii) the level of recent trades of similar or comparable securities; (ix) the liquidity characteristics of the security; (x) current market conditions; and (xi) the market value of any securities into which the security is convertible or exchangeable.
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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:
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Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Fund has the ability to access.
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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.
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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.
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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.
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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.
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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, 2012 for the Fund’s assets and liabilities measured at fair value:
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