Statements in this Semi-Annual Report that reflect projections or expectations of future financial or economic performance of the QCI Balanced Fund (“Fund”) and of the market in general and statements of
the Fund’s plans and objectives for future operations are forward-looking statements. No assurance can be given that actual results or events will not differ materially from those projected, estimated, assumed or anticipated in any such
forward-looking statements. Important factors that could result in such differences, in addition to the other factors noted with such forward-looking statements, include, without limitation, general economic conditions such as
inflation, recession and interest rates. Past performance is not a guarantee of future results.
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully
before investing. The prospectus contains this and other information about the Fund. A copy of the prospectus is available at e-qci.com or by calling
Shareholder Services at 800-773-3863. The prospectus should be read carefully before investing.
|
QCI Balanced Fund
|
||||||||||
Schedule of Investments
|
||||||||||
(Unaudited)
|
||||||||||
As of March 31, 2021
|
||||||||||
Principal
|
Coupon
Rate
|
Maturity Date
|
Value (Note 1)
|
|||||||
CORPORATE BONDS - 18.85%
|
||||||||||
Communication Services - 1.57%
|
||||||||||
Verizon Communications, Inc.
|
$ 985,000
|
4.125%
|
3/16/2027
|
$
|
1,112,050
|
|||||
1,112,050
|
||||||||||
Consumer Discretionary - 1.55%
|
||||||||||
Anheuser-Busch Cos., LLC
|
505,000
|
3.650%
|
2/1/2026
|
553,240
|
||||||
Lowe's Cos., Inc.
|
500,000
|
3.375%
|
9/15/2025
|
544,125
|
||||||
1,097,365
|
||||||||||
Consumer Staples - 1.55%
|
||||||||||
General Mills, Inc.
|
975,000
|
4.200%
|
4/17/2028
|
1,099,168
|
||||||
1,099,168
|
||||||||||
Energy - 0.80%
|
||||||||||
Chevron Corp.
|
535,000
|
2.895%
|
3/3/2024
|
569,884
|
||||||
569,884
|
||||||||||
Financials - 5.87%
|
||||||||||
Bank of America Corp.
|
1,115,000
|
1.366%
|
10/21/2022
|
1,121,325
|
||||||
JP Morgan Chase & Co.
|
1,085,000
|
3.900%
|
7/15/2025
|
1,194,366
|
||||||
US Bancorp
|
785,000
|
3.600%
|
9/11/2024
|
854,406
|
||||||
Wells Fargo Bank NA
|
1,000,000
|
0.845%
|
9/9/2022
|
1,002,598
|
||||||
4,172,695
|
||||||||||
Industrials - 3.18%
|
||||||||||
Deere & Co.
|
1,045,000
|
2.750%
|
4/15/2025
|
1,112,251
|
||||||
Norfolk Southern Corp.
|
245,000
|
3.250%
|
12/1/2021
|
247,919
|
||||||
Norfolk Southern Corp.
|
880,000
|
3.000%
|
4/1/2022
|
897,022
|
||||||
2,257,192
|
||||||||||
Information Technology - 3.15%
|
||||||||||
Apple, Inc.
|
1,065,000
|
2.450%
|
8/4/2026
|
1,121,119
|
||||||
Microsoft Corp.
|
1,015,000
|
3.300%
|
2/6/2027
|
1,115,878
|
||||||
2,236,997
|
||||||||||
Utilties - 1.18%
|
||||||||||
Duke Energy Corp.
|
805,000
|
2.650%
|
9/1/2026
|
841,069
|
||||||
841,069
|
||||||||||
Total Corporate Bonds (Cost $13,457,198)
|
13,386,420
|
|||||||||
FEDERAL AGENCY OBLIGATIONS - 12.11%
|
||||||||||
Financials - 12.11%
|
||||||||||
Federal Home Loan Banks
|
760,000
|
1.125%
|
7/14/2021
|
761,984
|
||||||
Federal Home Loan Mortgage Corp.
|
2,080,000
|
0.250%
|
6/26/2023
|
2,080,582
|
||||||
Federal National Mortgage Association
|
1,830,000
|
1.875%
|
9/24/2026
|
1,909,111
|
||||||
Federal National Mortgage Association
|
1,315,000
|
2.000%
|
1/5/2022
|
1,333,673
|
||||||
Federal National Mortgage Association
|
2,345,000
|
2.625%
|
9/6/2024
|
2,516,302
|
||||||
Total Federal Agency Obligations (Cost $8,358,637)
|
8,601,652
|
|||||||||
(Continued)
|
QCI Balanced Fund
|
||||||||||
Schedule of Investments - Continued
|
||||||||||
(Unaudited)
|
||||||||||
As of March 31, 2021
|
||||||||||
Shares
|
Value (Note 1) |
|||||||||
COMMON STOCKS - Continued
|
||||||||||
Financials - 10.24%
|
||||||||||
Bank of America Corp.
|
22,886
|
$
|
885,459
|
|||||||
*
|
Berkshire Hathaway, Inc. - Class B
|
5,500
|
1,405,085
|
|||||||
Chubb Ltd.
|
3,575
|
564,743
|
||||||||
JPMorgan Chase & Co.
|
5,046
|
768,152
|
||||||||
*
|
Manning & Napier, Inc.
|
175,000
|
1,132,250
|
|||||||
Mastercard, Inc.
|
2,300
|
818,915
|
||||||||
Regions Financial Corp.
|
32,630
|
674,136
|
||||||||
The Goldman Sachs Group, Inc.
|
1,129
|
369,183
|
||||||||
The PNC Financial Services Group, Inc.
|
3,726
|
653,578
|
||||||||
7,271,501
|
||||||||||
Health Care - 7.99%
|
||||||||||
Abbott Laboratories
|
6,564
|
786,630
|
||||||||
*
|
Biogen, Inc.
|
2,385
|
667,204
|
|||||||
*
|
Exact Sciences Corp.
|
1,838
|
242,212
|
|||||||
Humana, Inc.
|
1,427
|
598,270
|
||||||||
*
|
Illumina, Inc.
|
913
|
350,647
|
|||||||
*
|
Incyte Corp.
|
7,000
|
568,890
|
|||||||
Johnson & Johnson
|
6,622
|
1,088,326
|
||||||||
Roche Holding AG
|
19,000
|
770,640
|
||||||||
Zoetis, Inc.
|
3,816
|
600,944
|
||||||||
5,673,763
|
||||||||||
Industrials - 4.68%
|
||||||||||
General Dynamics Corp.
|
3,500
|
635,460
|
||||||||
*
|
Southwest Airlines Co.
|
12,419
|
758,304
|
|||||||
*
|
The Boeing Co.
|
5,000
|
1,273,600
|
|||||||
*
|
The LS Starrett Co.
|
10,878
|
70,163
|
|||||||
United Parcel Service, Inc.
|
3,442
|
585,106
|
||||||||
3,322,633
|
||||||||||
Information Technology - 9.39%
|
||||||||||
Apple, Inc.
|
17,000
|
2,076,550
|
||||||||
*
|
Check Point Software Technologies Ltd.
|
6,000
|
671,820
|
|||||||
Microsoft Corp.
|
7,000
|
1,650,390
|
||||||||
NVIDIA Corp.
|
928
|
495,487
|
||||||||
QUALCOMM, Inc.
|
2,979
|
394,986
|
||||||||
*
|
ServiceNow, Inc.
|
1,200
|
600,132
|
|||||||
Taiwan Semiconductor Manufacturing Co. Ltd.
|
3,469
|
410,313
|
||||||||
Universal Display Corp.
|
1,567
|
371,018
|
||||||||
6,670,696
|
||||||||||
Utilities - 1.04%
|
||||||||||
NextEra Energy, Inc.
|
9,800
|
740,978
|
||||||||
740,978
|
||||||||||
Total Common Stocks (Cost $25,621,674)
|
36,769,638
|
|||||||||
(Continued)
|
QCI Balanced Fund
|
||||||||||
Schedule of Investments - Continued
|
||||||||||
(Unaudited)
|
||||||||||
As of March 31, 2021
|
||||||||||
Shares
|
Value (Note 1)
|
|||||||||
EXCHANGE-TRADED PRODUCTS - 6.69%
|
||||||||||
Commodity Fund - 1.43%
|
||||||||||
*
|
SPDR Gold Shares
|
6,340
|
$
|
1,014,146
|
||||||
1,014,146
|
||||||||||
Materials - 5.26%
|
||||||||||
Schwab US TIPS ETF
|
23,506
|
1,437,627
|
||||||||
Vanguard Mortgage-Backed Securities ETF
|
43,028
|
2,296,404
|
||||||||
3,734,031
|
||||||||||
Total Exchange-Traded Products (Cost $4,697,989)
|
4,748,177
|
|||||||||
REAL ESTATE INVESTMENT TRUST - 0.81%
|
||||||||||
Real Estate Investment Trust - 0.81%
|
||||||||||
Americold Realty Trust
|
15,000
|
577,050
|
||||||||
Total Real Estate Investment Trust (Cost $499,506)
|
577,050
|
|||||||||
CALL OPTIONS PURCHASED - 7.04%
|
Number of
|
Exercise
|
Expiration
|
Notional
|
||||||
Contracts
|
Price
|
Date
|
Value
|
|||||||
(a)
|
CBOE Market Volatility
|
450
|
$ 30.00
|
7/21/2021
|
$ 873,000
|
$
|
126,000
|
|||
Total Call Options Purchased (Premiums Received $248,033)
|
126,000
|
|||||||||
SHORT-TERM INVESTMENT - 2.52%
|
||||||||||
Fidelity Institutional Money Market Funds -
|
Shares
|
|||||||||
Government Portfolio, 0.01% §
|
1,791,044
|
1,791,044
|
||||||||
Total Short-Term Investment (Cost $1,791,044)
|
1,791,044
|
|||||||||
Total Value of Investments (Cost $59,881,345) - 100.50%
|
$
|
71,378,953
|
||||||||
Liabilities in Excess of Other Assets - (0.50)%
|
(353,503)
|
|||||||||
Net Assets - 100.00%
|
$
|
71,025,450
|
||||||||
*
|
Non-income producing investment
|
|||||||||
§
|
Represents 7 day effective yield on March 31, 2021.
|
|||||||||
(a)
|
Counterparty is Interactive Brokers LLC.
|
|||||||||
(Continued)
|
|
(Continued)
|
QCI Balanced Fund
|
||||||||
Investments in Securities (a)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||
Assets
|
||||||||
Corporate Bonds*
|
$
|
13,386,420
|
$
|
-
|
$
|
13,386,420
|
$
|
-
|
Federal Agency Obligations
|
8,601,652
|
-
|
8,601,652
|
-
|
||||
United States Treasury Notes
|
3,519,165
|
-
|
3,519,165
|
-
|
||||
Municipal Bonds
|
1,315,745
|
-
|
1,315,745
|
-
|
||||
Preferred Stock
|
544,062
|
544,062
|
-
|
-
|
||||
Common Stocks*
|
36,769,638
|
36,769,638
|
-
|
-
|
||||
Exchange-Traded Products*
|
4,748,177
|
4,748,177
|
-
|
-
|
||||
Real Estate Investment Trust
|
577,050
|
577,050
|
-
|
-
|
||||
Call Options Purchased
|
126,000
|
126,000
|
-
|
-
|
||||
Short-Term Investment
|
1,791,044
|
1,791,044
|
-
|
-
|
||||
Total Assets
|
$
|
71,378,953
|
$
|
44,555,971
|
$
|
26,822,982
|
$
|
-
|
(a)
|
The Fund held no Level 3 securities during the fiscal period ended March 31, 2021.
|
|
(Continued)
|
2.
|
Transactions with Related Parties and Service Providers
|
|
(Continued)
|
Administration Fees*
|
Custody Fees*
|
Fund
Accounting
Fees
(minimum
monthly)
|
Fund
Accounting
Fees
(asset-
based fee)
|
Blue Sky
Administration
Fees (annual)
|
|||
Average Net Assets
|
Annual
Rate
|
Average Net Assets
|
Annual
Rate
|
||||
First $250 million
|
0.100%
|
First $200 million
|
0.020%
|
$2,250
|
0.01%
|
$150 per state
|
|
Next $250 million
|
0.080%
|
Over $200 million
|
0.009%
|
||||
Next $250 million
|
0.060%
|
||||||
Next $250 million
|
0.050%
|
*Minimum monthly fees of $2,000 and $417 for Administration and Custody, respectively.
|
|||||
Next $1 billion
|
0.040%
|
||||||
Over $2 billion
|
0.030%
|
|
(Continued)
|
Purchases of Securities
|
Proceeds from Sales of Securities
|
|
$20,672,901
|
$18,065,314
|
Purchases of Government
Securities
|
Proceeds from Sales of Government
Securities
|
|
$5,520,384
|
$3,420,000
|
|
Distributions from | ||
For the Fiscal Year
Or Period Ended
|
Ordinary Income
|
Long-Term-
Capital Gains
|
|
03/31/2021
|
$ 3,901,408
|
$ -
|
|
09/30/2020
|
$ 600,421
|
$ 537,998
|
Cost of Investments
|
$ 59,881,345
|
|||||
Unrealized Appreciation
|
$ 12,160,468
|
|||||
Unrealized Depreciation
|
(662,860)
|
|||||
Net Unrealized Appreciation
|
$ 11,497,608
|
|||||
|
(Continued)
|
QCI Balanced Fund
|
|
Additional Information
|
(Unaudited)
|
|
As of March 31, 2021
|
1.
|
Proxy Voting Policies and Voting Record
|
2.
|
Quarterly Portfolio Holdings
|
3.
|
Tax Information
|
4.
|
Schedule of Shareholder Expenses
|
|
(Continued)
|
QCI Balanced Fund
|
|
Additional Information
|
(Unaudited)
|
|
As of March 31, 2021
|
Institutional Class Shares
|
Beginning
Account Value
October 1, 2020
|
Ending
Account Value
March 31, 2021
|
Expenses Paid
During Period*
|
Actual
Hypothetical (5% annual return before expenses)
|
|||
$1,000.00
|
$1,094.70
|
$5.07
|
|
$1,000.00
|
$1,020.09
|
$4.89
|
ITEM 2.
|
CODE OF ETHICS.
|
ITEM 3.
|
AUDIT COMMITTEE FINANCIAL EXPERT. |
ITEM 4.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
ITEM 5.
|
AUDIT COMMITTEE OF LISTED REGISTRANTS. |
ITEM 6.
|
SCHEDULE OF INVESTMENTS. |
ITEM 7.
|
DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
ITEM 8.
|
PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
ITEM 9.
|
PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
ITEM 10.
|
SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS. |
Item 11.
|
CONTROLS AND PROCEDURES. |
(a) |
The President and Principal Executive Officer and the Treasurer and Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940)
are effective based on their evaluation of these disclosure controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rules 13a-15(b) or 15d-15(b) under the Exchange Act of 1934, as of a date within 90
days of the filing of this report.
|
(b) |
There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially
affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
|
ITEM 12.
|
DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
ITEM 13.
|
EXHIBITS.
|
(a)(1) |
Not applicable.
|
(a)(2) |
Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 are filed herewith.
|
(a)(3) |
Not applicable.
|
(a)(4) |
Not applicable.
|
(b) |
Certifications pursuant to Rule 30a-2(b) under the Act and Section 906 of the Sarbanes-Oxley Act of 2002 are filed herewith.
|
Starboard Investment Trust
|
||
/s/ Katherine M. Honey
|
||
By:
|
Katherine M. Honey
President and Principal Executive Officer
|
|
Date:
|
June 9, 2021
|
|
/s/ Katherine M. Honey | ||
By:
|
Katherine M. Honey
President and Principal Executive Officer
|
|
Date:
|
June 9, 2021
|
|
/s/ Ashley H. Lanham
|
||
By:
|
Ashley H. Lanham
Treasurer, Principal Financial Officer, and Principal Accounting Officer
|
|
Date:
|
June 9, 2021
|
1.
|
I have reviewed this report on Form N-CSR of the QCI Balanced Fund, a series of the Starboard Investment Trust;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects
the financial condition, results of operations, changes in net assets, and cash follows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented int his report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board
of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
b.
|
Any fraud, whether or not materials, that involves management or other employees who have a significant role in the registrant’s internal control
over financial reporting.
|
By:
|
/s/ Katherine M. Honey
|
|
Katherine M. Honey
President and Principal Executive Officer
|
||
Date:
|
June 9, 2021
|
1.
|
I have reviewed this report on Form N-CSR of the QCI Balanced Fund, a series of the Starboard Investment Trust;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects
the financial condition, results of operations, changes in net assets, and cash follows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented int his report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board
of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
b.
|
Any fraud, whether or not materials, that involves management or other employees who have a significant role in the registrant’s internal control
over financial reporting.
|
By:
|
/s/ Ashley H. Lanham
|
|
Ashley H. Lanham
Treasurer, Principal Financial Officer, and Principal Accounting Officer
|
||
Date:
|
June 9, 2021
|
|
(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund.
|
By:
|
/s/ Katherine M. Honey
|
|
Katherine M. Honey
President and Principal Executive Officer
|
||
Date:
|
June 9, 2021
|
|
(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund.
|
By:
|
/s/ Ashley H. Lanham
|
|
Ashley H. Lanham
Treasurer, Principal Financial Officer, and Principal Accounting Officer
|
||
Date:
|
June 9, 2021
|