AQUILA HIGH INCOME FUND

SCHEDULE OF INVESTMENTS

March 31, 2022

(unaudited)

 

Principal
Amount
  Corporate Bonds (97.4%)   Value   (a)
    Basic Industry (1.5%)        
    Chemicals (0.8%)        
    Diamond BC BV        
$ 1,183,000   4.625%, 10/01/29  144A   $ 1,061,743    
             
    Paper (0.7%)        
    Mercer International, Inc.        
975,000   5.500%, 01/15/26   982,313    
    Total Basic Industry   2,044,056    
             
    Brokerage Assetmanagers Exchanges (2.4%)        
    LPL Holdings, Inc.        
3,375,000   4.625%, 11/15/27 144A   3,314,959    
             
    Capital Goods (5.3%)        
    Aerospace/Defense (0.7%)        
    TransDigm, Inc.        
1,000,000   6.375%, 06/15/26   1,009,025    
             
    Building Materials (1.8%)        
    Builders FirstSource, Inc.        
1,253,000   5.000%, 03/01/30 144A   1,232,476    
             
    PGT Innovations, Inc.        
1,366,000   4.375%, 10/01/29 144A   1,273,795    
        2,506,271    
    Diversified Manufacturing (2.1%)        
    WESCO Distribution, Inc.        
2,750,000   7.250%, 06/15/28 144A   2,920,871    
             
    Packaging (0.7%)        
    Berry Global, Inc.        
1,000,000   5.625%, 07/15/27 144A   1,011,340    
    Total Capital Goods   7,447,507    
             
    Communications (6.3%)        
    Cable Satellite (2.3%)        
    DISH DBS Corp.        
1,500,000   5.875%, 07/15/22   1,507,470    
             
    Viasat, Inc.        
1,800,000   5.625%, 09/15/25 144A   1,758,006    
        3,265,476    
    Media Entertainment (3.3%)        
    Advantage Sales & Marketing, Inc.        
1,850,000   6.500%, 11/15/28 144A   1,750,896    
             
    Nexstar Media, Inc.        
2,800,000   5.625%, 07/15/27 144A   2,834,160    
        4,585,056    

 

 
 
 

 

 

AQUILA HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

March 31, 2022

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Communications (continued)        
    Wirelines (0.7%)        
    Level 3 Financing, Inc.        
$ 925,000   5.375%, 05/01/25   $   933,788    
    Total Communications   8,784,320    
             
    Consumer Cyclical (28.2%)        
    Automotive (4.7%)        
    Ford Holdings LLC        
2,000,000   9.300%, 03/01/30   2,474,040    
             
    The Goodyear Tire & Rubber Co.        
750,000   4.875%, 03/15/27   728,134    
             
    JB Poindexter & Co., Inc.        
3,350,000   7.125%, 04/15/26 144A   3,404,438    
        6,606,612    
    Consumer Cyclical Services (4.7%)        
    ASGN, Inc.        
1,575,000   4.625%, 05/15/28 144A   1,534,917    
             
    Cars.com, Inc.        
1,850,000   6.375%, 11/01/28 144A   1,836,810    
             
    Cushman & Wakefield        
3,100,000   6.750%, 05/15/28 144A   3,239,500    
        6,611,227    
    Gaming (9.6%)        
    Boyd Gaming Corp.        
1,500,000   4.750%, 12/01/27   1,492,500    
             
    Caesars Entertainment, Inc.        
4,100,000   6.250%, 07/01/25 144A   4,233,004    
             
    Churchill Downs, Inc.        
1,350,000   5.500%, 04/01/27 144A   1,365,309    
2,000,000   4.750%, 01/15/28 144A   1,940,000    
             
    Penn National Gaming, Inc.        
1,500,000   5.625%, 01/15/27 144A   1,486,245    
             
    Scientific Games International, Inc.        
900,000   8.625%, 07/01/25 144A   946,125    
             
    VICI Properties LP/VICI Note Co., Inc.        
2,000,000   4.625%, 12/01/29 144A   1,995,000    
        13,458,183    

 

 

 
 
 

 

 

AQUILA HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

March 31, 2022

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Consumer Cyclical (continued)        
    Home Construction (1.9%)        
    Century Communities, Inc.        
$ 1,175,000   6.750%, 06/01/27   $ 1,219,180    
             
    Shea Homes LP/Shea Homes Funding Corp.        
1,525,000   4.750%, 02/15/28 144A   1,434,720    
        2,653,900    
    Leisure (2.1%)        
    Live Nation Entertainment, Inc.        
1,475,000   4.875%, 11/01/24 144A   1,480,911    
1,550,000   4.750%, 10/15/27 144A   1,511,250    
        2,992,161    
    Lodging (1.0%)        
    Marriott Ownership Resorts Inc.        
1,450,000   4.750%, 01/15/28   1,395,625    
             
    Restaurants (0.6%)        
    Dave & Buster's, Inc.        
880,000   7.625%, 11/01/25 144A   925,892    
             
    Retailers (3.6%)        
    Academy Ltd.        
2,050,000   6.000%, 11/15/27 144A   2,098,852    
             
    Bath & Body Works, Inc.        
870,000   6.694%, 01/15/27   924,262    
1,000,000   7.500%, 06/15/29   1,083,195    
             
    Carvana Co.        
1,000,000   5.500%, 04/15/27 144A   892,500    
        4,998,809    
    Total Consumer Cyclical   39,642,409    
             
    Consumer Non-Cyclical (15.2%)        
    Food and Beverage (5.5%)        
    Del Monte Foods, Inc.        
3,350,000   11.875%, 05/15/25 144A   3,672,438    
             
    Performance Food Group, Inc.        
1,075,000   6.875%, 05/01/25 144A   1,112,399    
             
    United Natural Foods, Inc.        
1,925,000   6.750%, 10/15/28 144A   1,973,125    
             
    US Foods, Inc.        
1,000,000   4.750%, 02/15/29 144A   953,750    
        7,711,712    

 

 

 
 
 

 

 

AQUILA HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

March 31, 2022

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Consumer Non-Cyclical (continued)        
    Healthcare (5.0%)        
    Avantor Funding, Inc.        
$ 1,000,000   4.625%, 07/15/28 144A   $   989,000    
             
    IQVIA, Inc.        
1,150,000   5.000%, 10/15/26 144A   1,170,125    
             
    MEDNAX, Inc.        
2,000,000   5.375%, 02/15/30 144A   1,930,000    
             
    Prime Healthcare Services, Inc.        
1,800,000   7.250%, 11/01/25 144A   1,844,982    
             
    Teleflex, Inc.        
1,100,000   4.250%, 06/01/28 144A   1,071,125    
        7,005,232    
    Pharmaceuticals (1.6%)        
    Bausch Health Companies, Inc.        
2,202,000   6.125%, 04/15/25 144A   2,221,268    
             
    Supermarkets (3.1%)        
    Albertsons Companies, Inc./Safeway, Inc.        
1,325,000   4.625%, 01/15/27 144A   1,280,897    
1,300,000   5.875%, 02/15/28 144A   1,295,600    
             
    SEG Holding LLC/ SEG Finance Corp.        
1,875,000   5.625%, 10/15/28 144A   1,875,000    
        4,451,497    
    Total Consumer Non-Cyclical   21,389,709    
             
    Energy (10.1%)        
    Independent (2.9%)        
    Occidental Petroleum Corp.        
3,000,000   8.500%, 07/15/27   3,551,157    
             
    PDC Energy, Inc.        
500,000   6.125%, 09/15/24   506,120    
        4,057,277    

 

 

 
 
 

 

 

AQUILA HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

March 31, 2022

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Energy (continued)        
    Midstream (6.1%)        
    Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.        
$ 1,100,000   5.750%, 04/01/25   $ 1,105,143    
             
    Global Partners LP/GLP Finance Corp.        
1,175,000   7.000%, 08/01/27   1,175,000    
             
    New Fortress Energy, Inc.        
3,300,000   6.750%, 09/15/25 144A   3,319,503    
             
    Targa Resources Partners LP/Targa Resources Partners Finance Corp.        
2,950,000   5.875%, 04/15/26   3,042,335    
        8,641,981    
    Oil Field Services (1.1%)        
    ChampionX Corp.        
332,000   6.375%, 05/01/26   338,640    
             
    USA Compression Partners LP/USA Compression Finance Corp.        
1,200,000   6.875%, 04/01/26   1,210,800    
        1,549,440    
    Total Energy   14,248,698    
             
    Finance Companies (3.1%)        
    Fortress Transportation and Infrastructure Investors LLC        
1,950,000   6.500%, 10/01/25 144A   1,935,375    
2,250,000   9.750%, 08/01/27 144A   2,350,721    
        4,286,096    
    Other Financial (1.5%)        
    Credit Acceptance Corp.        
1,350,000   6.625%, 03/15/26   1,377,000    
             
    The Howard Hughes Corp.        
730,000   5.375%, 08/01/28 144A   732,905    
        2,109,905    
    Other Industrial (2.0%)        
    Tutor Perini Corp.        
2,900,000   6.875%, 05/01/25 144A   2,758,132    

 

 

 
 
 

 

 

AQUILA HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

March 31, 2022

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    REITs (7.6%)        
    Other REITs (7.6%)        
    iStar, Inc.        
$ 3,000,000   5.500%, 02/15/26   $ 3,037,500    
             
    New Residential Investment Corp.        
1,875,000   6.250%, 10/15/25 144A   1,800,000    
             
    RHP Hotel Properties LP/RHP Finance Corp.        
3,000,000   4.750%, 10/15/27   2,886,870    
             
    Service Properties Trust        
1,100,000   4.500%, 06/15/23   1,087,405    
             
    XHR LP        
1,800,000   6.375%, 08/15/25 144A   1,855,035    
        10,666,810    
    Technology (10.6%)        
    Black Knight InfoServ LLC        
750,000   3.625%, 09/01/28 144A   710,775    
             
    Camelot Finance SA        
1,000,000   4.500%, 11/01/26 144A   972,500    
             
    CDW LLC/CDW Finance Corp.        
825,000   4.250%, 04/01/28   808,500    
             
    CommScope Technologies LLC        
3,000,000   6.000%, 06/15/25 144A   2,841,330    
             
    Entegris, Inc.        
1,000,000   4.375%, 04/15/28 144A   967,500    
             
    Gartner, Inc.        
1,000,000   4.500%, 07/01/28 144A   996,245    
             
    Iron Mountain, Inc.        
925,000   4.875%, 09/15/27 144A   914,594    
875,000   5.250%, 03/15/28 144A   863,275    
             
    Shift4 Payments LLC/Shift4 Payments Finance Sub, Inc.        
875,000   4.625%, 11/01/26 144A   850,938    

 

 

 
 
 

 

 

AQUILA HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

March 31, 2022

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Technology (continued)        
    SS&C Technologies, Inc.        
$ 1,825,000   5.500%, 09/30/27 144A   $         1,838,715    
             
    II-VI, Inc.        
2,000,000   5.000%, 12/15/29 144A   1,955,000    
             
    Unisys Corp.        
1,100,000   6.875%, 11/01/27 144A   1,150,875    
        14,870,247    
    Transportation (3.6%)        
    Railroads (2.5%)        
    Watco Companies LLC        
3,550,000   6.500%, 06/15/27 144A   3,490,254    
             
    Transportation Services (1.1%)        
    Cargo Aircraft Management, Inc.        
1,650,000   4.750%, 02/01/28 144A   1,610,532    
    Total Transportation   5,100,786    
    Total Corporate Bonds
(cost $140,733,184)
  136,663,634    
             
Shares   Short-Term Investment (1.0%)        
1,471,920   Dreyfus Treasury Obligations Cash Management - Institutional Shares, 0.15%*
(cost $1,471,920)
  1,471,920    

 

    Total Investments
(cost $142,205,104 - note b)
98.4%   138,135,554    
    Other assets less liabilities 1.6   2,278,272    
    Net Assets 100.0%   $     140,413,826    

 

 

 
 
 

 

 

AQUILA HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

March 31, 2022

(unaudited)

 

Portfolio Distribution   Percent of
Investments
 
Aerospace/Defense   0.7 %
Automotive   4.8  
Broker Assetmanagers Exchanges   2.4  
Building Materials   1.8  
Cable Satellite   2.4  
Chemicals   0.8  
Consumer Cyclical Services   4.8  
Diversified Manufacturing   2.1  
Finance Companies   3.1  
Food and Beverage   5.6  
Gaming   9.9  
Healthcare   5.1  
Home Construction   1.9  
Independent   3.0  
Leisure   2.2  
Lodging   1.0  
Media Entertainment   3.5  
Midstream   6.3  
Oil Field Services   1.1  
Other Financial   1.6  
Other Industrial   2.0  
Other REITs   7.8  
Packaging   0.7  
Paper   0.7  
Pharmaceuticals   1.6  
Railroads   2.6  
Restaurants   0.7  
Retailers   3.7  
Supermarkets   3.3  
Technology   10.9  
Transportation Services   1.2  
Wirelines   0.7  
    100.0 %

 

*   The rate is an annualized seven-day yield at period end.

 

Note: 144A – Private placement subject to SEC rule 144A, which modifies a two-year holding period requirement to permit qualified institutional buyers to trade these securities among themselves, thereby significantly improving the liquidity of these securities.

 

 

See accompanying notes to financial statements.

 

 
 
 

 

 

AQUILA HIGH INCOME FUND

NOTES TO FINANCIAL STATEMENTS

March 31, 2022

(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 March 31, 2022 the net unrealized depreciation on investments, based on cost for federal income tax purposes of $142,832,538 amounted to $4,696,984, which consisted of aggregate gross unrealized appreciation of $224,157 and aggregate gross unrealized depreciation of $4,921,141.

 

(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 March 31, 2022:

 

Valuation Inputs+   Investments in
Securities
Level 1 – Quoted Prices    
Short-Term Investment   $              1,471,920
Level 2 – Other Significant Observable Inputs:    
Corporate Obligations   136,663,634
Level 3 – Significant Unobservable Inputs   —   
Total   $          138,135,554
+   See schedule of investments for a detailed listing of securities.