AQUILA HIGH INCOME FUND

SCHEDULE OF INVESTMENTS

September 30, 2023

(unaudited)

 

Principal
Amount
  Corporate Bonds (94.5%)   Value   (a)
    Banking (2.3%)        
    Comerica, Inc.        
$1,750,000   2.500%, 07/23/24   $1,675,198    
             
    The Huntington National Bank        
500,000   3.550%, 10/06/23   499,871    
        2,175,069    
             
    Basic Industry (2.4%)        
    Metals and Mining (1.5%)        
    Cleveland-Cliffs, Inc.        
1,500,000   6.750%, 04/15/30 144A   1,401,925    
             
    Paper (0.9%)        
    Mercer International, Inc.        
975,000   5.500%, 01/15/26   915,775    
    Total Basic Industry   2,317,700    
             
    Brokerage/Asset Managers/ Exchanges (1.3%)        
    LPL Holdings, Inc.        
1,375,000   4.625%, 11/15/27 144A   1,270,336    
             
    Capital Goods (8.9%)        
    Aerospace/Defense (1.5%)        
    TransDigm, Inc.        
1,500,000   6.875%, 12/15/30 144A   1,470,816    
             
    Building Materials (3.0%)        
    Builders FirstSource, Inc.        
1,253,000   5.000%, 03/01/30 144A   1,117,184    
             
    PGT Innovations, Inc.        
1,866,000   4.375%, 10/01/29 144A   1,720,607    
        2,837,791    
             

 

 

 
 
 

 

AQUILA HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

September 30, 2023

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Diversified Manufacturing (2.9%)        
    WESCO Distribution, Inc.        
$2,750,000   7.250%, 06/15/28 144A   $2,763,342    
             
    Packaging (1.5%)        
    Ball Corp.        
500,000   4.000%, 11/15/23   497,706    
             
    Berry Global, Inc.        
1,000,000   5.625%, 07/15/27 144A   966,032    
        1,463,738    
    Total Capital Goods   8,535,687    
             
    Communications (1.5%)        
    Cable Satellite (1.5%)        
    Viasat, Inc.        
1,550,000   5.625%, 09/15/25 144A   1,431,813    
             
    Consumer Cyclical (28.1%)        
    Automotive (4.5%)        
    Allison Transmission, Inc.        
500,000   5.875%, 06/01/29 144A   471,450    
             
    Ford Holdings LLC        
1,000,000   9.300%, 03/01/30   1,086,790    
             
    Ford Motor Company        
500,000   6.100%, 08/19/32   470,956    
             
    Ford Motor Credit Co. LLC        
1,000,000   5.584%, 03/18/24   993,638    
             
    JB Poindexter & Co., Inc.        
1,350,000   7.125%, 04/15/26 144A   1,313,313    
        4,336,147    
             

 

 

 
 
 

 

AQUILA HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

September 30, 2023

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Consumer Cyclical Services (5.3%)        
    ASGN, Inc.        
$1,575,000   4.625%, 05/15/28 144A   $1,405,112    
             
    Cars.com, Inc.        
1,850,000   6.375%, 11/01/28 144A   1,681,188    
             
    Cushman & Wakefield US Borrower LLC          
2,100,000   6.750%, 05/15/28 144A   1,937,460    
        5,023,760    
             
    Gaming (5.9%)        
    Caesars Entertainment, Inc.        
1,500,000   6.250%, 07/01/25 144A   1,479,469    
             
    Churchill Downs, Inc.        
600,000   5.500%, 04/01/27 144A   571,915    
2,000,000   4.750%, 01/15/28 144A   1,804,082    
             
    Penn Entertainment, Inc.        
500,000   5.625%, 01/15/27 144A   470,260    
             
    VICI Properties LP/VICI Note Co., Inc.        
1,500,000   4.625%, 12/01/29 144A   1,330,575    
        5,656,301    
             
    Home Construction (1.7%)        
    Century Communities, Inc.        
1,675,000   6.750%, 06/01/27   1,646,044    
             
    Leisure (4.6%)        
    Live Nation Entertainment, Inc.        
1,475,000   4.875%, 11/01/24 144A   1,449,188    
1,550,000   4.750%, 10/15/27 144A   1,419,219    
             
    Royal Caribbean Cruises Ltd.        
1,500,000   8.250%, 01/15/29 144A   1,556,192    
        4,424,599    
             
    Lodging (1.3%)        
    Marriott Ownership Resorts, Inc.        
1,450,000   4.750%, 01/15/28   1,269,084    
             
    Restaurants (0.9%)        
    Dave & Buster's, Inc.        
880,000   7.625%, 11/01/25 144A   879,610    

 

 

 
 
 

 

AQUILA HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

September 30, 2023

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Retailers (3.9%)        
    Academy Ltd.        
$2,050,000   6.000%, 11/15/27 144A   $1,937,660    
             
    Bath & Body Works, Inc.        
870,000   6.694%, 01/15/27   843,635    
1,000,000   7.500%, 06/15/29   987,821    
        3,769,116    
    Total Consumer Cyclical   27,004,661    
             
    Consumer Non-Cyclical (8.2%)        
    Food and Beverage (2.5%)        
    Performance Food Group, Inc.        
1,075,000   6.875%, 05/01/25 144A   1,073,656    
             
    US Foods, Inc.        
1,500,000   4.750%, 02/15/29 144A   1,340,652    
        2,414,308    
             
    Healthcare (1.1%)        
    IQVIA, Inc.        
1,150,000   5.000%, 10/15/26 144A   1,099,459    
             
    Supermarkets (4.6%)        
    Albertsons Cos Inc / Safeway, Inc. / New Albertsons LP / Albertsons LLC      
1,325,000   4.625%, 01/15/27 144A   1,251,089    
1,300,000   5.875%, 02/15/28 144A   1,251,222    
             
    SEG Holding LLC/ SEG Finance Corp.        
1,875,000   5.625%, 10/15/28 144A   1,879,688    
        4,381,999    
    Total Consumer Non-Cyclical   7,895,766    
             
    Electric (1.3%)        
    Midland Cogeneration Venture LP        
1,308,969   6.000%, 03/15/25 144A   1,292,606    
             

 

 

 
 
 

 

AQUILA HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

September 30, 2023

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Energy (13.1%)        
    Independent (1.1%)        
    Occidental Petroleum Corp.        
$1,000,000   7.500%, 05/01/31   $1,061,243    
             
    Midstream (8.4%)        
    Cheniere Energy, Inc.        
1,000,000   4.625%, 10/15/28   919,451    
             
    Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.        
1,100,000   5.750%, 04/01/25   1,082,114    
1,000,000   8.000%, 04/01/29 144A   1,025,737    
             
    Global Partners LP/GLP Finance Corp.        
1,175,000   7.000%, 08/01/27   1,145,028    
             
    New Fortress Energy, Inc.        
3,300,000   6.750%, 09/15/25 144A   3,150,200    
             
    The Williams Cos, Inc.        
750,000   4.500%, 11/15/23   748,126    
        8,070,656    
             
    Oil Field Services (3.6%)        
    Transocean Titan Financing Ltd.        
1,750,000   8.375%, 02/01/28 144A   1,780,625    
             
    USA Compression Partners LP/USA Compression Finance Corp.        
1,700,000   6.875%, 04/01/26   1,665,223    
        3,445,848    
    Total Energy   12,577,747    
             
    Finance Companies (5.5%)        
    Fortress Transportation and Infrastructure Investors LLC        
1,492,000   6.500%, 10/01/25 144A   1,466,404    
2,250,000   9.750%, 08/01/27 144A   2,327,265    
             
    OneMain Finance Corp.        
1,500,000   6.125%, 03/15/24   1,495,243    
        5,288,912    
    Total Finance Companies   5,288,912    
             

 

 

 
 
 

 

AQUILA HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

September 30, 2023

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Other Financial (2.2%)        
    Credit Acceptance Corp.        
$1,250,000   5.125%, 12/31/24 144A   $1,217,469    
             
    The Howard Hughes Corp.        
980,000   5.375%, 08/01/28 144A   863,449    
        2,080,918    
    Total Other Financial   2,080,918    
             
    Other Industrial (1.9%)        
    Tutor Perini Corp.        
2,000,000   6.875%, 05/01/25 144A   1,828,426    
             
    REITs (4.9%)        
    Other REITs (4.9%)        
    RHP Hotel Properties LP/RHP Finance Corp.        
1,000,000   4.750%, 10/15/27   910,000    
             
    Rithm Capital Corp.        
2,163,000   6.250%, 10/15/25 144A   2,052,276    
             
    XHR LP        
1,800,000   6.375%, 08/15/25 144A   1,767,222    
        4,729,498    
             
    Technology (7.0%)        
    Black Knight InfoServ LLC        
750,000   3.625%, 09/01/28 144A   671,588    
             
    Coherent Corp.        
1,500,000   5.000%, 12/15/29 144A   1,300,560    
             
    Elastic NV        
1,000,000   4.125%, 07/15/29 144A   851,656    
             
    Iron Mountain, Inc.        
925,000   4.875%, 09/15/27 144A   853,178    
1,375,000   5.250%, 03/15/28 144A   1,271,157    
             
    SS&C Technologies, Inc.        
825,000   5.500%, 09/30/27 144A   778,503    
             
    Zoominfo Technologies LLC/Zoominfo Finance Corp.        
1,250,000   3.875%, 02/01/29 144A   1,041,806    
        6,768,448    

 

 
 
 

 

AQUILA HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

September 30, 2023

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Transportation (5.9%)        
    Airlines (2.4%)        
    American Airlines, Inc./AAdvantage Loyalty IP Ltd.        
$1,833,333   5.500%, 04/20/26 144A   $1,790,548    
             
    United Airlines, Inc.        
500,000   4.375%, 04/15/26 144A   462,395    
        2,252,943    
             
    Railroads (2.0%)        
    Watco Cos. LLC/Watco Finance Corp.        
2,050,000   6.500%, 06/15/27 144A   1,946,885    
             
    Transportation Services (1.5%)        
    Cargo Aircraft Management, Inc.        
1,650,000   4.750%, 02/01/28 144A   1,473,078    
    Total Transportation   5,672,906    
    Total Corporate Bonds (cost $95,818,975)   90,870,493    
             
Shares   Short-Term Investment (4.4%)        
4,241,836   Dreyfus Treasury Obligations Cash Management - Institutional Shares, 5.23%* (cost $4,241,836)     4,241,836    
               
    Total Investments (cost $100,060,811 - note b) 98.9%   95,112,329    
    Other assets less liabilities 1.1      1,028,951    
    Net Assets 100.0%   $   96,141,280    
               

 

 

*   The rate is an annualized seven-day yield at period end.
 
Note: 144A – Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2023, these securities amounted to a value of $70,957,547 or 73.8% of net assets.

 

 
 
 

 

AQUILA HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

September 30, 2023

(unaudited)

 

Portfolio Distribution   Percent of
Investments
Aerospace/Defense   1.6%
Airlines   2.5
Automotive   4.8
Banking   2.4
Brokerage/ Asset Managers/ Exchanges   1.4
Building Materials   3.1
Cable Satellite   1.6
Consumer Cyclical Services   5.5
Diversified Manufacturing   3.0
Electric   1.4
Finance Companies   5.8
Food and Beverage   2.7
Gaming   6.2
Healthcare   1.2
Home Construction   1.8
Independent   1.2
Leisure   4.9
Lodging   1.4
Metals and Mining   1.5
Midstream   8.9
Oil Field Services   3.8
Other Financial   2.3
Other Industrial   2.0
Other REITs   5.2
Packaging   1.6
Paper   1.0
Railroads   2.1
Restaurants   1.0
Retailers   4.2
Supermarkets   4.8
Technology   7.5
Transportation Services   1.6
    100.0%

 

 

 

 

See accompanying notes to financial statements.

 

 
 
 

 

AQUILA HIGH INCOME FUND

NOTES TO FINANCIAL STATEMENTS

September 30, 2023

(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 September 30, 2023 the net unrealized depreciation on investments, based on cost for federal income tax purposes of $100,637,237 amounted to $5,524,908, which consisted of aggregate gross unrealized appreciation of $11,086 and aggregate gross unrealized depreciation of $5,535,994.

 

(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 September 30, 2023:

 

Valuation Inputs+   Investments in
Securities
Level 1 – Quoted Prices    
Short-Term Investment   $ 4,241,836
Level 2 – Other Significant Observable Inputs:    
Corporate Obligations   90,870,493
Level 3 – Significant Unobservable Inputs   —   
Total   $ 95,112,329
+See schedule of investments for a detailed listing of securities.