AQUILA THREE PEAKS HIGH INCOME FUND

SCHEDULE OF INVESTMENTS

September 30, 2021

(unaudited)

 

Principal
Amount
  Corporate Bonds (97.3%)   Value   (a)
    Communication Services (9.2%)        
    Advertising Services (1.6%)        
    Advantage Sales & Marketing, Inc.        
$ 2,850,000   6.500%, 11/15/28 144A   $ 2,970,384    
             
    Broadcast Services/Program (1.6%)        
    Nexstar Broadcasting, Inc.        
2,800,000   5.625%, 07/15/27 144A   2,962,330    
             
    Cable/Satellite TV (0.7%)        
    CCO Holdings LLC/CCO Holdings Capital Corp.        
1,176,000   5.500%, 05/01/26 144A   1,212,785    
             
    Computer Software (1.1%)        
    Rackspace Technology Global, Inc.        
2,100,000   5.375%, 12/01/28 144A   2,063,250    
             
    E-Commerce/Services (1.0%)        
    Cars.com, Inc.        
1,850,000   6.375%, 11/01/28 144A   1,951,750    
             
    Telephone - Integrated (0.5%)        
    Level 3 Financing, Inc.        
925,000   5.375%, 05/01/25   944,945    
             
    Theaters (2.7%)        
    Live Nation Entertainment, Inc.        
1,475,000   4.875%, 11/01/24 144A   1,491,476    
3,550,000   4.750%, 10/15/27 144A   3,607,634    
        5,099,110    
    Total Communication Services   17,204,554    
             
    Consumer Discretionary (21.1%)        
    Building - Residential/Commercial (1.5%)        
    Century Communities, Inc.        
1,175,000   6.750%, 06/01/27   1,254,301    
             
    Shea Homes LP/Shea Homes Funding Corp.        
1,525,000   4.750%, 02/15/28 144A   1,568,844    
             
        2,823,145    
    Casinos & Gaming (5.0%)        
    Boyd Gaming Corp.        
1,500,000   4.750%, 12/01/27   1,546,035    

 

 

 
 
 

 

 

AQUILA THREE PEAKS HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

September 30, 2021

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Consumer Discretionary (continued)        
    Caesars Entertainment, Inc.        
$ 4,100,000   6.250%, 07/01/25 144A   $ 4,316,306    
2,250,000   8.125%, 07/01/27 144A   2,529,506    
             
    Scientific Games International, Inc.        
900,000   8.625%, 07/01/25 144A   974,641    
             
        9,366,488    
    Funeral Services & Related Items (0.6%)        
    Service Corp. International/US        
1,000,000   5.125%, 06/01/29   1,087,150    
             
    Hotels & Motels (0.8%)        
    Marriott Ownership Resorts Inc./ILG LLC        
1,450,000   4.750%, 01/15/28   1,479,000    
             
    Racetracks (5.2%)        
    Churchill Downs, Inc.        
3,350,000   5.500%, 04/01/27 144A   3,475,625    
2,000,000   4.750%, 01/15/28 144A   2,092,500    
             
    Penn National Gaming, Inc.        
4,000,000   5.625%, 01/15/27 144A   4,120,000    
             
        9,688,125    
    Retail - Automobile (3.7%)        
    Carvana Co.        
2,875,000   5.625%, 10/01/25 144A   2,972,031    
2,750,000   5.500%, 04/15/27 144A   2,806,925    
             
    Sonic Automotive, Inc.        
1,150,000   6.125%, 03/15/27   1,195,184    
             
        6,974,140    
    Retail - Misc/Diversified (1.1%)        
    Bath & Body Works, Inc.        
870,000   6.694%, 01/15/27   1,002,675    
1,000,000   7.500%, 06/15/29   1,140,475    
             
        2,143,150    
    Retail - Restaurants (0.6%)        
    Dave & Buster's, Inc.        
990,000   7.625%, 11/01/25 144A   1,059,260    

 

 

 
 
 

 

 

AQUILA THREE PEAKS HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

September 30, 2021

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Consumer Discretionary (continued)        
    Retail - Sporting Goods (1.2%)        
    Academy Ltd.        
$ 2,050,000   6.000%, 11/15/27 144A   $ 2,214,000    
             
    Rubber - Tires (1.4%)        
    The Goodyear Tire & Rubber Co.        
1,700,000   5.000%, 05/31/26   1,744,625    
750,000   4.875%, 03/15/27   809,063    
        2,553,688    
    Total Consumer Discretionary   39,388,146    
             
    Consumer Staples (7.3%)        
    Food - Canned (2.0%)        
    Del Monte Foods, Inc.        
3,350,000   11.875%, 05/15/25 144A   3,777,125    
             
    Food - Miscellaneous/Diversified (0.5%)        
    B&G Foods, Inc.        
900,000   5.250%, 04/01/25   921,465    
             
    Food - Retail (2.5%)        
    Albertsons Companies, Inc./Safeway, Inc.        
1,325,000   4.625%, 01/15/27 144A   1,389,970    
1,300,000   5.875%, 02/15/28 144A   1,384,500    
             
    SEG Holding LLC/ SEG Finance Corp.        
1,875,000   5.625%, 10/15/28 144A   1,954,688    
             
        4,729,158    
    Food - Wholesale/Distributors (2.3%)        
    Performance Food Group, Inc.        
1,075,000   6.875%, 05/01/25 144A   1,139,500    
             
    United Natural Foods, Inc.        
1,925,000   6.750%, 10/15/28 144A   2,083,813    
             
    US Foods, Inc.        
1,000,000   4.750%, 02/15/29 144A   1,026,250    
        4,249,563    
    Total Consumer Staples   13,677,311    

 

 

 
 
 

 

 

AQUILA THREE PEAKS HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

September 30, 2021

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Energy (5.9%)        
    Midstream Oil & Gas (3.8%)        
    Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.        
$ 1,100,000   5.750%, 04/01/25   $ 1,123,375    
             
    Global Partners LP/GLP Finance Corp.        
1,175,000   7.000%, 08/01/27   1,224,938    
             
    New Fortress Energy, Inc.        
1,800,000   6.750%, 09/15/25 144A   1,732,500    
             
    Targa Resources Partners LP/Targa Resources Partners Finance Corp.        
2,950,000   5.875%, 04/15/26   3,080,906    
             
        7,161,719    
    Oil Company - Exploration & Production (0.6%)        
    PDC Energy, Inc.        
1,000,000   6.125%, 09/15/24   1,015,000    
             
    Oil Refining & Marketing (0.6%)        
    Sunoco LP/Sunoco Finance Corp.        
1,100,000   5.500%, 02/15/26   1,122,110    
             
    Oil - Field Services (0.9%)        
    ChampionX Corp.        
476,000   6.375%, 05/01/26   495,040    
             
    USA Compression Partners LP/USA Compression Finance Corp.        
1,200,000   6.875%, 04/01/26   1,249,442    
        1,744,482    
    Total Energy   11,043,311    
             
    Financials (21.6%)        
    Finance - Auto Loans (0.8%)        
    Credit Acceptance Corp.        
1,350,000   6.625%, 03/15/26   1,410,750    
             
    Finance - Investment Banker/Broker (3.0%)        
    LPL Holdings, Inc.        
5,375,000   4.625%, 11/15/27 144A   5,576,563    
             
    Finance - Mortgage Loan/Banker (2.2%)        
    LD Holdings Group LLC        
1,500,000   6.500%, 11/01/25 144A   1,496,250    
2,850,000   6.125%, 04/01/28 144A   2,686,125    
        4,182,375    

 

 

 
 
 

 

 

AQUILA THREE PEAKS HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

September 30, 2021

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Financials (continued)        
    Real Estate Management/Service (4.7%)        
    Cushman & Wakefield        
$ 3,100,000   6.750%, 05/15/28 144A   $ 3,363,500    
             
    Realogy Group LLC/Realogy Co-Issuer Corp.        
5,000,000   9.375%, 04/01/27 144A   5,493,750    
        8,857,250    
    Real Estate Operator/Developer (0.4%)        
    The Howard Hughes Corp.        
730,000   5.375%, 08/01/28 144A   769,238    
             
    REITS - Diversified (3.8%)        
    iStar, Inc.        
3,000,000   5.500%, 02/15/26   3,135,000    
             
    New Residential Investment Corp.        
1,875,000   6.250%, 10/15/25 144A   1,889,559    
             
    VICI Properties LP/VICI Note Co., Inc.        
2,000,000   4.625%, 12/01/29 144A   2,150,000    
        7,174,559    
    REITS - Hotels (5.7%)        
    RHP Hotel Properties LP/RHP Finance Corp.        
4,625,000   4.750%, 10/15/27   4,786,736    
             
    Service Properties Trust        
1,100,000   4.500%, 06/15/23   1,122,022    
1,950,000   4.650%, 03/15/24   1,969,500    
825,000   4.350%, 10/01/24   835,915    
             
    XHR LP        
1,800,000   6.375%, 08/15/25 144A   1,909,585    
        10,623,758    
    REITS - Storage (1.0%)        
    Iron Mountain, Inc.        
925,000   4.875%, 09/15/27 144A   960,317    
875,000   5.250%, 03/15/28 144A   914,375    
        1,874,692    
    Total Financials   40,469,185    

 

 

 
 
 

 

 

AQUILA THREE PEAKS HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

September 30, 2021

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Healthcare (6.1%)        
    Diagnostic Equipment (0.6%)        
    Avantor Funding, Inc.        
$ 1,000,000   4.625%, 07/15/28 144A   $ 1,052,500    
             
    Disposable Medical Products (0.6%)        
    Teleflex, Inc.        
1,100,000   4.250%, 06/01/28 144A   1,142,999    
             
    Medical Laboratories & Testing Services (1.6%)        
    Catalent Pharma Solutions, Inc.        
500,000   3.125%, 02/15/29 144A   490,975    
             
    IQVIA, Inc.        
1,150,000   5.000%, 10/15/26 144A   1,178,601    
             
    MEDNAX, Inc.        
1,250,000   6.250%, 01/15/27 144A   1,314,063    
        2,983,639    
    Medical - Drugs (1.2%)        
    Bausch Health Companies, Inc.        
2,202,000   6.125%, 04/15/25 144A   2,247,471    
             
    Medical - Hospitals (1.0%)        
    Prime Healthcare Services, Inc.        
1,800,000   7.250%, 11/01/25 144A   1,930,500    
             
    Medical - Wholesale Drug Distribution (1.1%)        
    AdaptHealth LLC        
1,850,000   6.125%, 08/01/28 144A   1,965,625    
    Total Healthcare   11,322,734    

 

 

 
 
 

 

 

AQUILA THREE PEAKS HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

September 30, 2021

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Industrials (14.9%)        
    Aerospace/Defense - Equipment (1.2%)        
    TransDigm, Inc.        
$ 2,250,000   6.375%, 06/15/26   $ 2,321,235    
             
    Auto - Medium & Heavy Duty Trucks (1.9%)        
    JB Poindexter & Co., Inc.        
3,350,000   7.125%, 04/15/26 144A   3,525,875    
             
    Building & Construction Products - Miscellaneous (0.5%)        
    Builders FirstSource, Inc.        
825,000   5.000%, 03/01/30 144A   879,145    
             
    Building - Heavy Construction (0.8%)        
    Tutor Perini Corp.        
1,400,000   6.875%, 05/01/25 144A   1,431,500    
             
    Building Products - Doors & Windows (0.2%)        
    PGT Innovations, Inc.        
366,000   4.375%, 10/01/29 144A   368,745    
             
    Electric Products - Miscellaneous (0.4%)        
    WESCO Distribution, Inc.        
750,000   7.250%, 06/15/28 144A   830,625    
             
    Human Resources (0.9%)        
    ASGN, Inc.        
1,575,000   4.625%, 05/15/28 144A   1,630,125    
             
    Transportation - Air Freight (0.9%)        
    Cargo Aircraft Management, Inc.        
1,650,000   4.750%, 02/01/28 144A   1,706,100    
             
    Transportation - Equipment & Leasing (2.4%)        
    Fortress Transportation and Infrastructure Investors LLC        
1,950,000   6.500%, 10/01/25 144A   2,007,291    
2,250,000   9.750%, 08/01/27 144A   2,548,125    
        4,555,416    
    Transportation - Rail (2.0%)        
    Watco Companies LLC        
3,550,000   6.500%, 06/15/27 144A   3,798,500    

 

 

 
 
 

 

 

AQUILA THREE PEAKS HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

September 30, 2021

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Industrials (continued)        
    Waste Management (3.7%)        
    Covanta Holding Corp.        
$ 1,625,000   5.875%, 07/01/25   $ 1,677,813    
             
    GFL Environmental, Inc.        
1,125,000   5.125%, 12/15/26 144A   1,181,374    
             
    Waste Pro USA, Inc.        
4,000,000   5.500%, 02/15/26 144A   4,040,000    
        6,899,187    
    Total Industrials   27,946,453    
             
    Information Technology (9.7%)        
    Applications Software (1.0%)        
    SS&C Technologies, Inc.        
1,825,000   5.500%, 09/30/27 144A   1,927,077    
             
    Commercial Services - Finance (0.5%)        
    Shift4 Payments LLC/Shift4 Payments Finance Sub, Inc.        
875,000   4.625%, 11/01/26 144A   913,281    
             
    Communications Software (1.1%)        
    Avaya, Inc.        
1,900,000   6.125%, 09/15/28 144A   1,997,793    
             
    Computer Services (0.6%)        
    Unisys Corp.        
1,100,000   6.875%, 11/01/27 144A   1,201,750    
             
    Computer Software (0.5%)        
    Camelot Finance SA        
1,000,000   4.500%, 11/01/26 144A   1,038,750    
             
    Consulting Services (0.6%)        
    Gartner, Inc.        
1,000,000   4.500%, 07/01/28 144A   1,050,000    
             
    Office Automation & Equipment (0.5%)        
    CDW LLC/CDW Finance Corp.        
825,000   4.250%, 04/01/28   861,486    

 

 

 
 
 

 

 

AQUILA THREE PEAKS HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

September 30, 2021

(unaudited)

 

Principal
Amount
  Corporate Bonds (continued)   Value   (a)
    Information Technology (continued)        
    Semiconductor Equipment (0.5%)        
    Entegris, Inc.        
$ 1,000,000   4.375%, 04/15/28 144A   $ 1,047,500    
             
    Telecommunication Equipment (3.0%)        
    CommScope Technologies LLC        
5,500,000   6.000%, 06/15/25 144A   5,568,750    
             
    Transactional Software (0.4%)        
    Black Knight InfoServ LLC        
750,000   3.625%, 09/01/28 144A   753,750    
             
    Wireless Equipment (1.0%)        
    Viasat, Inc.        
1,800,000   5.625%, 09/15/25 144A   1,824,178    
    Total Information Technology   18,184,315    
             
    Materials (1.5%)        
    Chemicals - Specialty (0.1%)        
    Diamond BC BV        
183,000   4.625%, 10/01/29 144A   185,745    
             
    Containers - Metal/Glass (0.3%)        
    Ball Corp.        
500,000   2.875%, 08/15/30   485,313    
             
    Containers - Paper/Plastic (0.6%)        
    Berry Global, Inc.        
1,000,000   5.625%, 07/15/27 144A   1,056,710    
             
    Paper & Related Products (0.5%)        
    Mercer International, Inc.        
975,000   5.500%, 01/15/26   995,719    
    Total Materials   2,723,487    
    Total Corporate Bonds
(cost $180,021,566)
  181,959,496    

 

 

Shares   Short-Term Investment (3.0%)        
5,595,369   Dreyfus Treasury Obligations Cash Management - Institutional Shares, 0.01%*
(cost $5,595,369)
  5,595,369    

 

    Total Investments
(cost $185,616,935 - note b)
100.3%   187,554,865    
    Other assets less liabilities (0.3)   (561,738)    
    Net Assets 100.0%   $ 186,993,127    

 

 
 
 

 

 

AQUILA THREE PEAKS HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

September 30, 2021

(unaudited)

 

Portfolio Distribution   Percent of
Investments
Advertising Services   1.6%
Aerospace/Defense - Equipment   1.3
Applications Software   1.1
Auto - Medium & Heavy Duty Trucks   1.9
Broadcast Services/Program   1.6
Building - Heavy Construction   0.8
Building - Residential/Commercial   1.5
Building & Construction Products - Miscellaneous   0.5
Building Products - Doors & Windows   0.2
Cable/Satellite TV   0.7
Casinos & Gaming   5.1
Chemicals - Specialty   0.1
Commercial Services - Finance   0.5
Communications Software   1.1
Computer Services   0.7
Computer Software   1.7
Consulting Services   0.6
Containers - Metal/Glass   0.3
Containers - Paper/Plastic   0.6
Diagnostic Equipment   0.6
Disposable Medical Products   0.6
E-Commerce/Services   1.1
Electric Products - Miscellaneous   0.5
Finance - Auto Loans   0.8
Finance - Investment Banker/Broker   3.1
Finance - Mortgage Loan/Banker   2.3
Food - Canned   2.1
Food - Miscellaneous/Diversified   0.5
Food - Retail   2.6
Food - Wholesale/Distributors   2.3
Funeral Services & Related Items   0.6
Hotels & Motels   0.8
Human Resources   0.9
Medical - Drugs   1.2
Medical - Hospitals   1.1
Medical - Wholesale Drug Distribution   1.1
Medical Laboratories & Testing Services   1.6
Midstream Oil & Gas   3.9
Office Automation & Equipment   0.5
Oil Company - Exploration & Production   0.6
Oil - Field Services   1.0
Oil Refining & Marketing   0.6
Paper & Related Products   0.5
Racetracks   5.3
Real Estate Management/Service   4.9
Real Estate Operator/Developer   0.4

 

See accompanying notes to financial statements.

 

 
 
 

 

 

AQUILA THREE PEAKS HIGH INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

September 30, 2021

(unaudited)

 

Portfolio Distribution   Percent of
Investments
REITS - Diversified   3.9
REITS - Hotels   5.8
REITS - Storage   1.0
Retail - Automobile   3.8
Retail - Misc/Diversified   1.2
Retail - Restaurants   0.6
Retail - Sporting Goods   1.2
Rubber - Tires   1.4
Semiconductor Equipment   0.6
Telecommunication Equipment   3.1
Telephone - Integrated   0.5
Theaters   2.8
Transactional Software   0.4
Transportation - Air Freight   0.9
Transportation - Equipment & Leasing   2.5
Transportation - Rail   2.1
Waste Management   3.8
Wireless Equipment   1.0
    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 THREE PEAKS HIGH INCOME FUND

NOTES TO FINANCIAL STATEMENTS

September 30, 2021

(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, 2021, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $186,024,328 amounted to $1,530,537, which consisted of aggregate gross unrealized appreciation of $2,293,321 and aggregate gross unrealized depreciation of $762,784.

 

(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, 2021:

 

Valuation Inputs+   Investments in
Securities
Level 1 – Quoted Prices    
Short-Term Investment   $ 5,595,369
Level 2 – Other Significant Observable Inputs:    
Corporate Obligations   181,959,496
Level 3 – Significant Unobservable Inputs   —   
Total   $ 187,554,865
+See schedule of investments for a detailed listing of securities.    

 

(d)       Subsequent Event: On October 1, 2021, Three Peaks Capital Management, LLC will no longer serve as Sub-Adviser to the Fund. Aquila Investment Management will remain as the Fund's Investment Adviser. No Material changes to the Fund's investment objective, principal investment strategies, fees or expenses are currently anticipated in connection with the change. Effective October 1, 2021, the Fund was renamed Aquila High Income Fund.