NPORT-EX 2 fp0094260-1_nportex.htm

Schedule of Investments (a) 

June 30, 2025 (unaudited)

 

Corporate Bonds & Notes - 84.20%       
Name of Issuer  Principal   Value  
Aerospace / Defense - 8.20%          
Moog, Inc., 4.25%, 12/15/27 (c)  $5,000,000   $4,877,615 
Spirit Aerosystems, Inc., 9.375%, 11/30/2029 (c)   5,000,000    5,304,475 
         10,182,090 
           
Airlines - 1.61%          
Delta Air Lines, Inc., 4.5%, 10/20/25 (c)   2,000,000    1,995,144 
           
Building Products - 7.57%          
Builders Firstsource, Inc., 4.25%, 2/01/32 (c)   5,000,000    4,632,355 
Louisiana Pacific Corp., 3.625%, 3/15/29 (c)   5,000,000    4,763,975 
         9,396,330 
           
Chemicals - 3.51%          
Chemours Co., 4.625%, 11/15/29 (c)   5,000,000    4,351,240 
           
Coal - 0.21%          
Westmoreland Mining Holdings LLC, 8%, 11/4/30 (d)   678,590    257,864 
           
Drug Stores - 0.03%          
Rite Aid Corp., PIK FRN (TSFR3M + 700), 8/30/31 (c) (g)   56,272    24,760 
Rite Aid Corp., PIK 15%, 8/30/31 (g)   167,515    1,675 
Rite Aid Corp., PIK 15%, 8/30/31 (g)   121,937    9,755 
         36,190 
           
Energy/Natural Resources - 4.04%          
Comstock Resources, Inc., 6.75%, 3/01/29 (c)   5,000,000    5,008,470 
           
Food & Beverage - 7.84%          
Darling Ingredients, Inc., 5.25%. 4/15/27 (c)   4,750,000    4,738,163 
Performance Food Group, Inc., 5.5%, 10/15/27 (c)   5,000,000    4,989,560 
         9,727,723 
           
Health Care - 4.17%          
Mallinckrodt International Fin, 14.75%, 11/14/28 (c)   5,000,000    5,177,075 
           
Homebuilders - 4.17%          
KB Home, 7.25%, 7/15/30   5,000,000    5,172,465 
           
Industrial Servicing / Manufacturing - 5.09%          
Clean Harbors, Inc., 4.875%, 7/15/27 (c)   500,000    497,627 
Fortress Transportation and Infrastructure Investors LLC, 5.5%, 5/01/28 (c)   750,000    745,957 
XPO, Inc., 6.25%, 6/01/28 (c)   5,000,000    5,073,660 
         6,317,244 
           
Metals & Mining - 3.65%          
Allegheny Technologies, Inc., 6.95%, 12/15/25   4,500,000    4,530,118 

 

 

Oil & Gas Drilling - 3.88%          
Tidewater, Inc., 8.5%, 11/16/26   4,700,000    4,821,260 
           
Paper Product - 2.38%          
Graphic Packaging International, 4.75%, 7/15/27 (c)   3,000,000    2,949,237 
           
Real Estate - 3.02%          
Five Point Operating Co. LP, 10.5%, 1/15/28 (c)   3,689,982    3,754,332 
           
Retail Food Chain - 0.97%          
Brinker International, Inc., 8.25%, 7/15/30 (c)   1,130,000    1,204,256 
           
Technology - 8.86%          
Iron Mountain, Inc., 4.5%, 2/15/31 (c)   1,000,000    953,114 
Iron Mountain, Inc., 5.625%, 7/15/32 (c)   4,000,000    3,968,424 
SS&C Technologies, Inc., 5.5%, 9/30/2027 (c)   5,000,000    4,997,505 
Western Digital Corp., 4.75%, 2/15/26   1,087,000    1,084,517 
         11,003,560 
           
Tobacco - 7.87%          
Pyxus Holdings, Inc., 8.5%, 12/31/27 (c)   10,845,675    9,773,678 
           
Wireless Telecom - 3.63%          
Altice France SA, 8.125%, 2/01/27 (c)   5,000,000    4,500,000 
           
Wirelines - 3.50%          
Uniti Group LP, 10.5%, 2/15/28 (c)   4,099,000    4,348,096 
           
Total Corporate Bonds & Notes —  (cost -$103,339,953)       $104,506,372 
           
Convertible Bonds - 1.21%          

Name of issuer  Principal   Value  
Airlines - 1.21%        
American Airlines, 6.5%, 7/1/25  $1,500,000   $1,500,000 
Total Convertible Bonds —  (cost—$1,500,000)       $1,500,000 
           
GDP-Linked Bonds - 0.85%          

Name of issuer  Principal   Value 
Republic of Argentina GDP Linked Security, FRN (based on the performance of Argentina's GDP), 12/15/35 (e)  $34,386,574   $1,055,324 
Total GDP-Linked Bonds —  (cost—$1,423,421)       $1,055,324 

 

 

         
Common Stock - 12.01%  Number of    
Name of issuer  Shares   Value  
Chemicals - 2.65%       
Ingevity Corp. (e)   602   $25,940 
NL Industries, Inc.   510,200    3,265,280 
         3,291,220 
           
Coal - 0.04%          
Westmet Group Holdings (d) (e)   22,614    45,228 
Westmoreland Mining Holdings LLC, Class A Units (d) (e)   22,416    11,208 
         56,436 
           
Drug Stores - 0.00%          
Rite Aid Litigation Trust Interests (d) (e)   53,022    0 
Rite Aid Equity Interests (d) (e)   778    0 
Rite Aid Real Estate Cash Escrow (e)   856,000    0 
Rite Aid Real Estate Cash Escrow (e)   155,702    0 
         0 
           
Electrical Utility - 2.50%          
Homer City Holdings, LLC (d) (e)   221,338    3,098,732 
           
Energy / Natural Resources - 0.24%          
Talos Energy, Inc. (e)   35,718    302,889 
           
Food Processing - 3.20%          
Viskase Cos., Inc. (e)   3,052,635    3,968,425 
           
Metals & Mining - 2.18%          
American Gilsonite (b) (d) (e)   1,597,765    2,700,223 
Metals Recovery Holdings, LLC (b) (d) (e)   21,539    7,300 
         2,707,523 
           
Oil & Gas Drilling - 0.96%          
Key Energy Services, Inc. (e)   129    111 
Nabors Industries LTD   42,311    1,185,554 
         1,185,665 
           
Packaging & Container - 0.13%          
Smurfit WestRock PLC   3,626    156,462 
           
Transportation - 0.11%          
Getlink SA (France)   7,349    141,689 
           
Total Common Stock —  (cost—$39,304,439)       $14,909,041 

 

Repurchase Agreement - 0.80%        
Name of Issuer  Principal   Value 
State Street Bank & Trust Co. 1.36% dated 06/30/25, to be repurchased at $996,744 on 7/1/25 (f)          
Total Repurchase Agreement - (cost - $996,706)  $996,706   $996,706 
           
Total Investments - 99.07% (cost—$146,564,519)       $122,967,443 
           
Net Other Assets and Liabilities - 0.93%        1,158,841 
           
Net Assets - 100%       $124,126,284 

 

 

(a) Portions of the portfolio may be pledged to collateralize short term borrowings when utilized.
(b) Security is valued at fair value as determined in good faith under  consistently applied procedures approved by the Board of Trustees. The aggregate market value of good faith securities as of June 30, 2025 was $2,707,523 which represents 2.18% of total net assets.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933.  These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.  At the period end, the value of these securities amounted to $88,628,718 which represents 71.40% of total net assets. These securities are generally deemed liquid.
(d) All or a portion the security is restricted.  The Trust may acquire restricted securities which are subject to legal or contractual restrictions on resale and may be illiquid. The aggregate market value of restricted securities as of June 30, 2025 was $6,120,555 which represents 4.93% of total net assets.  Additional information on  each holding is as follows:

 

Security  Acquisition Date  Acquisition Cost 
American Gilsonite  1/2/17 - 8/26/21  $9,640,360 
Metals Recovery Holdings, LLC  9/30/2016 - 12/10/2019  $1,999,343 
Homer City Holdings, LLC  4/6/2017  $588,216 
Rite Aid Litigation Trust Interests  8/30/2024  $26,511 
Rite Aid Equity Interests  8/30/2024  $155,600 
Westmoreland Mining Holdings LLC. 8% 11/4/30  5/4/2023  $606.728 
Westmoreland Mining Holdings LLC, Class A Units  3/15/2019 - 5/4/2023  $861,283 
Westmet Group Holdings  5/4/2023  $135,685 

 

(e) Non-income producing security.
(f) Acquired on June 30, 2025.  Collateralized by $1,016,640 of US Treasury Bond due 8/15/43.  The maturity value is $996,744.
(g) Non-income producing security due to default of bankruptcy filing.
   
  FRN Floating Rate Note - rates reflected are as of June 30, 2025
  PIK Payment in Kind

 

 

Investment Valuation

   

Accounting Standards Codification ASC 820, Fair Value Measurements and Disclosures (ASC 820) defines fair value as the price that would be received to sell an investment in an orderly transaction  between two market participants at the measurement date. ASC 820 establishes a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Trust's own market assumptions (unobservable inputs). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of certain inputs to the fair value measurement  requires judgments and considers factors that may be specific to each security. The various inputs that may be used to determine the value of the Trust's investments are summarized in the following fair value hierarchy:

    

Level 1 - Unadjusted quoted prices in active markets for identical securities.

 

Level 2 - Other significant observable inputs based on data obtained from various pricing sources (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

 

Level 3 - Significant unobservable inputs including the Trust's own assumptions used to determine the fair value of investments.  Factors considered in making such determinations may include, but are not limited to, information obtained directly from the company or analysts and the analysis of the company's financial statements or other documents. 

 

The following table summarized the Trust's investment as of June 30, 2025, based on the inputs used to value them.

 

               Total as of 
   Level 1   Level 2   Level 3   6/30/2025 
Corporate Bonds & Notes  $-   $104,481,612   $24,760   $104,506,372 
Common Stock   4,936,236    4,110,114    5,862,691    14,909,041 
GDP Linked Bonds   -    1,055,324    -    1,055,324 
Convertible Bonds   -    1,500,000    -    1,500,000 
Repurchase Agreement   -    996,706    -    996,706 
   $4,936,236   $112,143,756   $5,887,451   $122,967,443 

 

Transfers between hierarchy levels may occur due to market fluctuation, changes in valuation techniques and/or changes in the availability of market data used in the determination of an investment’s valuation. The Trust recognizes transfers between the levels at the end of each period.  For the period ended June 30, 2025, there were two transfers from level 3 to level 2 due to an increase in observable inputs.

 

At June 30, 2025, the reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value, is as follows: 

          
   Corporate Bonds, & Notes   Common Stock   Totals 6/30/2025 
Beginning Balance @ 9/30/24  $227,238   $5,907,539   $6,134,777 
                
Purchases / PIK Interest   24,356    -    24,356 
                
Sales   (39,444)   -    (39,444)
                
Realized Gain(Loss)   -    -    - 
                
Net Change in Unrealized Appreciation/(Depreciation)   (175,960)   (44,848)   (220,808)
                
Transfers into Level 3 from Level 2   -    -    - 
                
Transfers out of Level 3 into Level 2   (11,430)   -    (11,430)
                
Ending Balance @ 06/30/2025  $24,760   $5,862,691   $5,887,451 

 

 

   Change in Unrealized
Gain / (Loss) for Positions Still
Held at June 30, 2025
 
Corporate Bonds, & Notes  $(28,254)
Common Stock   (44,858)
Totals  $(73,112)

 

The Financial Accounting Standard Board (FASB) issued guidance that a reporting entity should disclose quantitative information about the unobservable inputs used in the fair value determinations that are categorized in the Level 3 hierarchy.  The guidance also required additional disclosure regarding the valuation process used and the sensitivity of the fair value measurements to changes in unobservable inputs and the interrelationships between those unobservable inputs within Level 3. The following table presents a summary of valuation techniques, inputs and quantitative information used in determining the fair value of the Trust’s Level 3 securities as of June 30, 2025:

 

Investment Type  Fair Value   Valuation
Technique
  Significant
Unobservable
Inputs
  Range   Increase to
Valuation from an
Increase in Input (1)
Corporate Bonds & Notes           
Drug Stores  $24,760   Third Party Vendor (2)  Broker Quote   $44 - $46   Increase
                    
Common Stock                   
Coal   45,228   Third Party Vendor (2)  Broker Quote   $2.00 - $2.75   Increase
                    
Coal   11,208   Third Party Vendor (2)  Broker Quote   $0.50 - $1.00   Increase
                    
Electrical Utility   3,098,732   Third Party Vendor (2)  Broker Quote   $14 - $15   Increase
                    
Metals and Mining   2,700,223   Market Comparable (3)  EBITDA   5.8x - 8.8x   Increase
           Multiple        
                    
Metals and Mining   7,300   Market Approach (4)  Recovery Rate   N/A   Increase
                    
   $5,887,451               

 

 

(1)This column represents the direction change in the fair value of the Level 3 securities that would result from an increase to the corresponding unobservable input. A decrease to the unobservable inputs would have the opposite effect.  Significant increases and decreases of these inputs could result in significantly higher or lower fair value determinations.

 

(2)Certain of the Trust’s Level 3 investments have been valued using unadjusted inputs that have not been internally developed by the Trust including third-party transactions and quotations.

 

(3)Earnings multiples are based on comparable companies and transactions of comparable companies.

 

(4)A market approach using the value of the underlying assets of a company.

 

For additional information on the Trust's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent semiannual or  annual shareholder report.