Amended Certified Semi-annual Shareholder Report for Management Investment Companies (n-csrs/a)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-22497

Huntington Strategy Shares

(Exact name of registrant as specified in charter)

 

2960 North Meridian St., Suite 300		Indianapolis, IN 46208
(Address of principal executive offices)		(Zip code)

Citi Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, OH 43219

(Name and address of agent for service)

Registrant’s telephone number, including area code: [phone]

Date of fiscal year end: April 30

Date of reporting period: October 31, 2012

 

 

EXPLANATORY NOTE:

This amended filing of Form N-CSRS is being made to address an incorrect filing. A submission was filed January 4, 2013 under accession number 0001193125-13-003145 which erroneously displayed an incorrect telephone number for the registrant. This amended filing is made with the correct telephone number for the registrant to replace the original filing, which should be disregarded.

 

 

 

Item 1. Reports to Stockholders.

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Semi-Annual Shareholder Report

 

 

 

 

Huntington Strategy Shares

Huntington US Equity Rotation Strategy ETF

Huntington Ecological Strategy ETF

 

 

 

OCTOBER 31, 2012

 

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Expense Examples (Unaudited)		October 31,  2012

 

As a Fund shareholder, you may incur two types of costs: (1) transaction costs, including wire redemption fees and sales charges, as applicable; and (2) ongoing costs, including advisory fees; distribution and service (12b-1) fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The expense examples below are based on an investment of $1,000 invested at the beginning of, and held through, the inception-to-date period ended October 31, 2012.

The Actual Expense figures in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual

Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

The Hypothetical Expense figures in the table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the examples are useful in comparing ongoing costs only and will not help you determine the relative total cost of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

 

Fund		Beginning Account Value		Actual Ending Account Value 10/31/12		Hypothetical Ending Account Value		Actual Expenses Paid During the Period		Hypothetical Expenses Paid During the Period (*)		Annualized Expense Ratio During Period
Huntington US Equity Rotation Strategy ETF (a)		$1,000.00		$1,050.40		$1,019.05		$2.70		$6.14		0.95%
Huntington EcoLogical Strategy ETF (b)		$1,000.00		$1,040.40		$1,019.05		$3.61		$6.14		0.95%

 

*	Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half year period).

(a)

The Fund commenced operations on July 23, 2012. Actual Expenses Paid During the Period are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 101 divided by 366 (to reflect the actual days in the period). Hypothetical Expense Paid During the Period are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 183 divided by 366 (to reflect the one-half year period).

(b)

The Fund commenced operations on June 18, 2012. Actual Expenses Paid During the Period are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 136 divided by 366 (to reflect the actual days in the period). Hypothetical Expenses Paid During the Period are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 183 divided by 366 (to reflect the one-half year period).

 

Semi-Annual Shareholder Report

 

1

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Huntington US Equity  Rotation Strategy ETF		October 31, 2012

 

Schedule of Portfolio Investments		(unaudited)

 

Share Amount						Market Value
	Common Stocks (96.4%)
	Aerospace & Defense (1.4%)
	216			Boeing Co.		$	15,215
	108			General Dynamics Corp.			7,353
	252			Honeywell International, Inc.			15,432
	99			Lockheed Martin Corp.			9,273
	90			Northrop Grumman Corp.			6,182
	126			Raytheon Co.			7,127
	135			Textron, Inc.			3,403
	252			United Technologies Corp.			19,697
							83,682
	Air Freight & Logistics (0.6%)
	90			C.H. Robinson Worldwide, Inc.			5,430
	99			FedEx Corp.			9,107
	288			United Parcel Service, Inc., Class B			21,096
							35,633
	Airlines (0.1%)
	36			Allegiant Travel Co. †			2,619
	378			Southwest Airlines Co.			3,334
							5,953
	Auto Components (0.2%)
	243			Johnson Controls, Inc.			6,257
	288			The Goodyear Tire & Rubber Co. †			3,286
							9,543
	Automobiles (0.3%)
	1,305			Ford Motor Co.			14,564
	117			Harley-Davidson, Inc.			5,471
							20,035
	Beverages (1.4%)
	1,314			Coca-Cola Co.			48,855
	63			Monster Beverage Corp. †			2,814
	468			PepsiCo, Inc.			32,404
							84,073
	Biotechnology (3.0%)
	162			Alexion Pharmaceuticals, Inc. †			14,642
	702			Amgen, Inc.			60,754
	207			Biogen Idec, Inc. †			28,612
	135			Celgene Corp. †			9,898
	774			Gilead Sciences, Inc. †			51,982
	36			Regeneron Pharmaceuticals, Inc. †			5,123
	369			The Medicines Co. †			8,088
							179,099
	Building Products (0.1%)
	216			Masco Corp.			3,259
	Capital Markets (1.7%)
	117			Ameriprise Financial, Inc.			6,829
	414			Bank of New York Mellon Corp.			10,230
	54			BlackRock, Inc.			10,243
	63			Franklin Resources, Inc.			8,051
	207			Invesco, Ltd.			5,034

Share Amount						Market Value
	Common Stocks (continued)
	Capital Markets (continued)
	531			Morgan Stanley Dean Witter & Co.		$	9,229
	135			Northern Trust Corp.			6,450
	207			State Street Corp.			9,226
	126			T. Rowe Price Group, Inc.			8,182
	441			The Charles Schwab Corp.			5,989
	171			The Goldman Sachs Group, Inc.			20,930
							100,393
	Chemicals (1.6%)
	72			Albemarle Corp.			3,968
	36			CF Industries Holdings, Inc.			7,387
	45			Cytec Industries, Inc.			3,097
	297			E.I. Du Pont de Nemours & Co.			13,221
	126			Ecolab, Inc.			8,770
	99			Hawkins, Inc.			3,871
	117			Koppers Holdings, Inc.			4,177
	153			Monsanto Co.			13,168
	45			PPG Industries, Inc.			5,269
	90			Praxair, Inc.			9,559
	369			The Dow Chemical Co.			10,812
	108			The Mosaic Co.			5,653
							88,952
	Commercial Banks (1.8%)
	261			BB&T Corp.			7,556
	441			Fifth Third Bancorp			6,408
	612			KeyCorp			5,153
	171			PNC Financial Services Group			9,950
	531			Regions Financial Corp.			3,462
	216			SunTrust Banks, Inc.			5,875
	540			U.S. Bancorp			17,933
	1,476			Wells Fargo & Co.			49,727
							106,064
	Commercial Services & Supplies (1.0%)
	90			Adt Corp. †			3,736
	252			Arbitron, Inc.			9,163
	603			Cardtronics, Inc. †			17,131
	468			Exlservice Holdings, Inc. †			13,872
	180			Rollins, Inc.			4,081
	234			Waste Management, Inc.			7,661
							55,644
	Communications Equipment (2.1%)
	3,537			Arris Group, Inc. †			48,599
	1,539			Cisco Systems, Inc.			26,378
	36			F5 Networks, Inc. †			2,969
	207			Juniper Networks, Inc. †			3,430
	2,016			PC-Tel, Inc.			13,144
	459			Qualcomm, Inc.			26,886
							121,406
	Computers & Peripherals (6.0%)
	477			Apple Computer, Inc.			283,862
	576			Dell, Inc.			5,316

 

 

See notes to Financial Statements.

Semi-Annual Shareholder Report

 

2

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Huntington US Equity Rotation Strategy ETF		(Continued)

 

Share Amount						Market Value
	Common Stocks (continued)
	Computers & Peripherals (continued)
	585			EMC Corp. †		$	14,286
	594			Hewlett-Packard Co.			8,227
	459			LivePerson, Inc. †			7,202
	828			NCR Corp. †			17,619
	144			NetApp, Inc. †			3,874
	135			SanDisk Corp. †			5,638
	459			Seagate Technology PLC			12,540
	117			Western Digital Corp.			4,005
							362,569
	Construction & Engineering (0.2%)
	117			Fluor Corp.			6,534
	135			ITT Corp.			2,808
							9,342
	Consumer Finance (0.7%)
	360			American Express Co.			20,149
	207			Capital One Financial Corp.			12,455
	207			Discover Financial Services			8,487
							41,091
	Containers & Packaging (0.1%)
	99			Owens-Illinois, Inc. †			1,930
	45			Rock-Tenn Co., Class A			3,293
	153			Sealed Air Corp.			2,482
							7,705
	Diversified Consumer Services (0.1%)
	315			H & R Block, Inc.			5,576
	Diversified Financial Services (2.0%)
	3,249			Bank of America Corp.			30,281
	216			CBOE Holdings, Inc.			6,370
	855			Citigroup, Inc.			31,968
	1,098			J.P. Morgan Chase & Co.			45,764
	135			Moody’s Corp.			6,502
							120,885
	Diversified Telecommunication Services (1.8%)
	1,845			AT&T, Inc.			63,819
	972			Verizon Communications, Inc.			43,390
							107,209
	Electric Utilities (1.5%)
	279			Edison International			13,096
	693			El Paso Electric Co.			23,555
	432			Exelon Corp.			15,457
	171			NextEra Energy, Inc.			11,980
	477			Southern Co.			22,343
							86,431
	Electrical Equipment (0.6%)
	117			Ametek, Inc.			4,159
	81			Cooper Industries PLC, Class A			6,070
	252			Emerson Electric Co.			12,205
	90			General Cable Corp. †			2,568

Share Amount						Market Value
	Common Stocks (continued)
	Electrical Equipment (continued)
	63			Rockwell Automation, Inc.		$	4,477
	54			Roper Industries, Inc.			5,895
							35,374
	Electronic Equipment, Instruments & Components (1.6%)
	297			Analogic Corp.			21,877
	540			Corning, Inc.			6,345
	468			Cymer, Inc. †			37,295
	702			Ingram Micro, Inc., Class A †			10,670
	144			OSI Systems, Inc. †			11,412
	81			Trimble Navigation, Ltd. †			3,822
							91,421
	Energy Equipment & Services (1.0%)
	162			Baker Hughes, Inc.			6,799
	288			Halliburton Co.			9,300
	72			Helmerich & Payne, Inc.			3,442
	162			Nabors Industries, Ltd. †			2,185
	135			National Oilwell Varco, Inc.			9,950
	387			Schlumberger, Ltd.			26,907
							58,583
	Food & Staples Retailing (1.7%)
	144			Costco Wholesale Corp.			14,174
	405			CVS Caremark Corp.			18,792
	189			J & J Snack Foods Corp.			10,824
	252			Walgreen Co.			8,878
	486			Wal-Mart Stores, Inc.			36,460
	63			Whole Foods Market, Inc.			5,968
							95,096
	Food Products (1.1%)
	270			Archer-Daniels-Midland Co.			7,247
	81			Green Mountain Coffee Roasters, Inc. †			1,957
	306			Hillshire Brands Co.			7,959
	639			Hormel Foods Corp.			18,870
	192			Kraft Foods Group, Inc. †			8,732
	90			Lancaster Colony Corp.			6,550
	576			Mondelez International, Inc.			15,287
							66,602
	Gas Utilities (0.2%)
	315			New Jersey Resources Corp.			14,005
	Health Care (0.4%)
	81			Air Methods Corp. †			8,880
	189			Haemonetics Corp. †			15,441
							24,321
	Health Care Equipment & Supplies (2.0%)
	216			Baxter International, Inc.			13,528
	207			Covidien PLC			11,375
	1,197			CryoLife, Inc.			7,409
	54			Edwards Lifesciences Corp. †			4,689
	270			Hologic, Inc. †			5,567
	72			IDEXX Laboratories, Inc. †			6,926

 

 

See notes to Financial Statements.

Semi-Annual Shareholder Report

 

3

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Huntington US Equity Rotation Strategy ETF		(Continued)

 

Share Amount						Market Value
	Common Stocks (continued)
	Health Care Equipment & Supplies (continued)
	36			Intuitive Surgical, Inc. †		$	19,521
	360			Medtronic, Inc.			14,969
	198			Neogen Corp. †			8,472
	135			St. Jude Medical, Inc.			5,165
	135			Stryker Corp.			7,101
	207			Wex, Inc. †			15,272
							119,994
	Health Care Providers & Services (3.3%)
	153			Aetna, Inc.			6,686
	1,125			AmerisourceBergen Corp.			44,370
	477			AmSurg Corp. †			13,604
	45			DaVita, Inc. †			5,063
	306			Henry Schein, Inc. †			22,577
	72			Humana, Inc.			5,347
	297			McKesson Corp.			27,713
	1,107			UnitedHealth Group, Inc.			61,992
	117			WellPoint, Inc.			7,170
							194,522
	Health Care Technology (0.3%)
	234			Allscripts Healthcare Solutions, Inc. †			3,023
	180			Cerner Corp. †			13,714
							16,737
	Hotels, Restaurants & Leisure (1.2%)
	9			Chipotle Mexican Grill, Inc. †			2,291
	126			Marriott International, Inc., Class A			4,596
	261			McDonald’s Corp.			22,655
	1,260			Monarch Casino & Resort, Inc. †			11,491
	216			Starbucks Corp.			9,914
	90			Starwood Hotels & Resorts Worldwide, Inc.			4,667
	72			Wyndham Worldwide Corp.			3,629
	126			Yum! Brands, Inc.			8,834
							68,077
	Household Durables (0.2%)
	90			Lennar Corp., Class A			3,372
	99			Tempur-Pedic International, Inc. †			2,618
	54			Whirlpool Corp.			5,275
							11,265
	Household Products (1.4%)
	135			Clorox Co.			9,761
	144			Colgate-Palmolive Co.			15,114
	135			Kimberly-Clark Corp.			11,266
	657			Procter & Gamble Co.			45,490
							81,631
	Independent Power Producers & Energy Traders (0.1%)
	216			NRG Energy, Inc.			4,657
	Industrial Conglomerates (1.7%)
	207			3M Co.			18,132
	216			Danaher Corp.			11,174
	3,078			General Electric Co.			64,822

Share Amount						Market Value
	Common Stocks (continued)
	Industrial Conglomerates (continued)
	180			Tyco International, Ltd.		$	4,837
							98,965
	Insurance (2.7%)
	144			ACE, Ltd.			11,326
	180			AFLAC, Inc.			8,960
	198			Allstate Corp.			7,916
	252			American International Group, Inc. †			8,802
	522			Berkshire Hathaway, Inc., Class B †			45,076
	351			eHealth, Inc. †			7,617
	243			Hartford Financial Services Group, Inc.			5,276
	153			Lincoln National Corp.			3,793
	279			Marsh & McLennan Cos., Inc.			9,494
	207			Prudential Financial, Inc.			11,809
	333			Safety Insurance Group, Inc.			15,435
	126			The Chubb Corp.			9,699
	153			The Travelers Cos., Inc.			10,854
							156,057
	Internet & Catalog Retail (1.0%)
	99			Amazon.com, Inc. †			23,049
	54			Expedia, Inc.			3,194
	459			IAC/InterActiveCorp			22,193
	18			Netflix, Inc. †			1,424
	18			Priceline.com, Inc. †			10,328
							60,188
	Internet Software & Services (2.8%)
	99			Akamai Technologies, Inc. †			3,761
	324			DealerTrack Holdings, Inc. †			8,855
	1,512			eBay, Inc. †			73,014
	27			Equinix, Inc. †			4,871
	63			Google, Inc., Class A †			42,826
	54			Rackspace Hosting, Inc. †			3,439
	486			VeriSign, Inc. †			18,016
	414			XO Group, Inc. †			3,333
	477			Yahoo!, Inc. †			8,018
							166,133
	IT Services (6.5%)
	198			Accenture PLC, Class A			13,347
	135			Alliance Data Systems Corp. †			19,312
	189			Automatic Data Processing, Inc.			10,922
	117			Cognizant Technology Solutions Corp. †			7,798
	675			Fiserv, Inc. †			50,585
	1,098			Gartner Group, Inc. †			50,958
	306			Heartland Payment Systems, Inc.			7,980
	297			International Business Machines Corp.			57,775
	99			MasterCard, Inc., Class A			45,632
	270			Paychex, Inc.			8,756
	414			Teradata Corp. †			28,280
	1,008			Total System Services, Inc.			22,670
	459			Visa, Inc., Class A			63,692
							387,707

 

 

See notes to Financial Statements.

Semi-Annual Shareholder Report

 

4

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Huntington US Equity Rotation Strategy ETF		(Continued)

 

Share Amount						Market Value
	Common Stocks (continued)
	Life Sciences Tools & Services (0.3%)
	153			Agilent Technologies, Inc.		$	5,506
	108			Covance, Inc. †			5,261
	144			Thermo Fisher Scientific, Inc.			8,793
							19,560
	Machinery (1.6%)
	207			Caterpillar, Inc.			17,557
	90			Cummins, Inc.			8,422
	162			Deere & Co.			13,842
	171			Eaton Corp.			8,075
	180			Illinois Tool Works, Inc.			11,039
	135			Ingersoll-Rand PLC			6,349
	72			Joy Global, Inc.			4,496
	72			Lincoln Electric Holdings, Inc.			3,123
	45			Oshkosh Truck Corp. †			1,349
	171			PACCAR, Inc.			7,411
	90			Parker Hannifin Corp.			7,079
	43			Pentair, Ltd.			1,816
	81			Stanley Black & Decker, Inc.			5,613
							96,171
	Media (2.3%)
	234			CBS Corp., Class B			7,582
	756			Comcast Corp., Class A			28,357
	234			DIRECTV †			11,960
	108			Discovery Communications, Inc., Class A †			6,374
	144			McGraw-Hill Cos., Inc.			7,960
	684			News Corp., Class A			16,361
	243			The Interpublic Group of Cos., Inc.			2,454
	117			Time Warner Cable, Inc.			11,596
	306			Time Warner, Inc.			13,296
	189			Viacom, Inc., Class B			9,690
	513			Walt Disney Co.			25,172
							140,802
	Metals & Mining (0.7%)
	450			Alcoa, Inc.			3,857
	72			Allegheny Technologies, Inc.			1,897
	63			Cliffs Natural Resources, Inc.			2,285
	279			Freeport-McMoRan Copper & Gold, Inc.			10,848
	126			Newmont Mining Corp.			6,873
	153			Nucor Corp.			6,140
	144			Olympic Steel, Inc.			2,592
	54			Reliance Steel & Aluminum Co.			2,934
	27			Royal Gold, Inc.			2,378
	108			United States Steel Corp.			2,202
							42,006
	Multiline Retail (0.5%)
	72			Dollar Tree, Inc. †			2,871
	63			Family Dollar Stores, Inc.			4,155
	153			Macy’s, Inc.			5,825
	216			Target Corp.			13,770
							26,621

Share Amount						Market Value
	Common Stocks (continued)
	Multi-Utilities (0.1%)
	117			Sempra Energy		$	8,161
	Office Electronics (0.1%)
	675			Xerox Corp.			4,347
	Oil, Gas & Consumable Fuels (5.9%)
	162			Anadarko Petroleum Corp.			11,147
	126			Apache Corp.			10,427
	126			Cabot Oil & Gas Corp.			5,919
	243			Chesapeake Energy Corp.			4,923
	522			Chevron Corp.			57,530
	360			ConocoPhillips			20,826
	117			CONSOL Energy, Inc.			4,114
	180			Denbury Resources, Inc. †			2,759
	135			Devon Energy Corp.			7,858
	33			Energy Transfer Partners			1,412
	90			EOG Resources, Inc.			10,484
	1,269			Exxon Mobil Corp.			115,695
	117			Hess Corp.			6,114
	108			HollyFrontier Corp.			4,172
	234			Marathon Oil Corp.			7,034
	117			Marathon Petroleum Corp.			6,427
	99			Murphy Oil Corp.			5,940
	72			Noble Energy, Inc.			6,841
	225			Occidental Petroleum Corp.			17,766
	126			Peabody Energy Corp.			3,515
	54			Pioneer Natural Resources Co.			5,705
	63			Plains Exploration & Production Co. †			2,247
	108			QEP Resources, Inc.			3,132
	99			Range Resources Corp.			6,471
	153			Southwestern Energy Co. †			5,309
	216			The Williams Cos., Inc.			7,558
	207			Valero Energy Corp.			6,024
							347,349
	Paper & Forest Products (0.2%)
	198			Clearwater Paper Corp. †			7,829
	135			International Paper Co.			4,837
							12,666
	Personal Products (0.1%)
	207			Avon Products, Inc.			3,206
	81			The Estee Lauder Cos., Inc., Class A			4,992
							8,198
	Pharmaceuticals (13.0%)
	1,260			Abbott Laboratories			82,555
	504			Allergan, Inc.			45,320
	1,350			Bristol-Myers Squibb Co.			44,888
	666			Eli Lilly & Co.			32,388
	954			Express Scripts Holding Co. †			58,709
	81			Hospira, Inc. †			2,486
	2,691			Johnson & Johnson			190,577
	2,376			Merck & Co., Inc.			108,417
	216			Mylan Laboratories, Inc. †			5,473
	81			Perrigo Co.			9,316
	6,093			Pfizer, Inc.			151,533

 

 

See notes to Financial Statements.

Semi-Annual Shareholder Report

 

5

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Huntington US Equity Rotation Strategy ETF		(Continued)

 

Share Amount						Market Value
	Common Stocks (continued)
	Pharmaceuticals (continued)
	216			Salix Pharmaceuticals, Ltd. †		$	8,433
	81			Vertex Pharmaceuticals, Inc. †			3,907
	297			Watson Pharmaceuticals, Inc. †			25,527
							769,529
	Pipelines (0.1%)
	180			Kinder Morgan, Inc.			6,248
	Real Estate Investment Trusts (REITS) (1.7%)
	486			Apartment Investment and Management Co., Class A			12,971
	180			HCP, Inc.			7,974
	342			Host Hotels & Resorts, Inc.			4,945
	306			Potlatch Corp.			11,775
	198			Prologis, Inc.			6,789
	54			Public Storage, Inc.			7,486
	99			Simon Property Group, Inc.			15,069
	72			SL Green Realty Corp.			5,422
	567			Urstadt Biddle Properties, Class A			10,739
	108			Vornado Realty Trust			8,663
	270			Weyerhaeuser Co.			7,476
							99,309
	Real Estate Management & Development (0.1%)
	189			CBRE Group, Inc., Class A †			3,405
	36			Jones Lang LaSalle, Inc.			2,799
							6,204
	Road & Rail (0.6%)
	396			CSX Corp.			8,106
	54			Kansas City Southern Industries, Inc.			4,345
	144			Norfolk Southern Corp.			8,834
	135			Union Pacific Corp.			16,609
							37,894
	Semiconductors & Semiconductor Equipment (2.0%)
	180			Altera Corp.			5,486
	90			Cree, Inc. †			2,730
	1,818			Exar Corp. †			15,544
	315			FEI Co.			17,341
	1,413			Intel Corp.			30,556
	288			Lam Research Corp. †			10,195
	477			Micron Technology, Inc. †			2,588
	450			Monolithic Power Systems, Inc. †			8,744
	324			NVIDIA Corp. †			3,878
	549			Supertex, Inc. †			10,491
	405			Texas Instruments, Inc.			11,376
							118,929
	Software (5.2%)
	207			Adobe Systems, Inc. †			7,038
	126			Autodesk, Inc. †			4,012
	99			BMC Software, Inc. †			4,029
	396			Citrix Systems, Inc. †			24,477
	216			Electronic Arts, Inc. †			2,668
	225			Fair Isaac Corp.			10,485

Share Amount						Market Value
	Common Stocks (continued)
	Software (continued)
	747			Intuit, Inc.		$	44,387
	1,089			Jack Henry & Associates, Inc.			41,382
	342			MetLife, Inc.			12,138
	2,043			Microsoft Corp.			58,296
	1,035			Monotype Imaging Holdings, Inc.			15,846
	477			NetScout Systems, Inc. †			11,796
	1,035			Oracle Corp.			32,137
	360			Red Hat, Inc. †			17,701
	153			Rovi Corp. †			2,070
	54			Salesforce.com, Inc. †			7,883
	207			Tyler Technologies, Inc. †			9,897
							306,242
	Specialty Retail (1.9%)
	72			Abercrombie & Fitch Co., Class A			2,202
	54			Advance Auto Parts, Inc.			3,831
	144			American Eagle Outfitters, Inc.			3,005
	198			Ann, Inc. †			6,962
	90			Bed Bath & Beyond, Inc. †			5,191
	135			Best Buy Co., Inc.			2,053
	81			Foot Locker, Inc.			2,714
	387			Lowe’s Cos., Inc.			12,531
	414			OfficeMax, Inc.			3,043
	45			O’Reilly Automotive, Inc. †			3,856
	45			PetSmart, Inc.			2,988
	81			Ross Stores, Inc.			4,937
	36			Sherwin-Williams Co.			5,133
	180			The Cato Corp., Class A			5,108
	135			The Gap, Inc.			4,822
	450			The Home Depot, Inc.			27,621
	99			The Limited, Inc.			4,741
	216			TJX Cos., Inc.			8,992
	27			Tractor Supply Co.			2,598
							112,328
	Textiles, Apparel & Luxury Goods (0.5%)
	90			Coach, Inc.			5,045
	45			Fossil, Inc. †			3,920
	108			NIKE, Inc., Class B			9,868
	45			Ralph Lauren Corp.			6,916
	27			V.F. Corp.			4,225
							29,974
	Tobacco (1.2%)
	657			Altria Group, Inc.			20,893
	45			Lorillard, Inc.			5,220
	486			Philip Morris International, Inc.			43,040
							69,153
	Trading Companies & Distributors (0.1%)
	99			Fastenal Co.			4,426
	18			W.W. Grainger, Inc.			3,625
							8,051
	Water Utilities (0.4%)
	504			American States Water Co.			22,186

 

 

See notes to Financial Statements.

Semi-Annual Shareholder Report

 

6

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Huntington US Equity Rotation Strategy ETF		(Continued)

 

 

Share Amount						Market Value
	Common Stocks (continued)
	Wireless Telecommunication Services (0.3%)
	135			American Tower Corp.		$	10,164
	963			Sprint Nextel Corp. †			5,335
							15,499
	Total Common Stocks (cost $5,611,612)						5,693,306
	Total Investments (96.4%) (cost $5,611,612)						5,693,306
	Other Assets less Liabilities (3.6%)						214,523
	Net Assets (100.0%)					$	5,907,829

 

†	Non-income producing security

Portfolio of Investments Summary Table (unaudited)

 

		Percentage of Market Value
Aerospace & Defense			1.5%
Air Freight & Logistics			0.6%
Airlines			0.1%
Auto Components			0.2%
Automobiles			0.4%
Beverages			1.5%
Biotechnology			3.2%
Building Products			0.1%
Capital Markets			1.8%
Chemicals			1.6%
Commercial Banks			1.9%
Commercial Services & Supplies			1.0%
Communications Equipment			2.1%
Computers & Peripherals			6.4%
Construction & Engineering			0.2%
Consumer Finance			0.7%
Containers & Packaging			0.1%
Diversified Consumer Services			0.1%
Diversified Financial Services			2.1%
Diversified Telecommunication Services			1.9%
Electric Utilities			1.5%
Electrical Equipment			0.6%
Electronic Equipment, Instruments & Components			1.6%
Energy Equipment & Services			1.0%
Food & Staples Retailing			1.7%
Food Products			1.2%
Gas Utilities			0.2%
Health Care			0.4%
Health Care Equipment & Supplies			2.1%
Health Care Providers & Services			3.4%

 

See notes to Financial Statements.

Semi-Annual Shareholder Report

 

7

---

 

Huntington US Equity Rotation Strategy ETF		(Continued)
Portfolio of Investments Summary Table (continued)

 

		Percentage of Market Value
Health Care Technology			0.3%
Hotels, Restaurants & Leisure			1.2%
Household Durables			0.2%
Household Products			1.4%
Independent Power Producers & Energy Traders			0.1%
Industrial Conglomerates			1.7%
Insurance			2.7%
Internet & Catalog Retail			1.1%
Internet Software & Services			2.9%
IT Services			6.8%
Life Sciences Tools & Services			0.3%
Machinery			1.7%
Media			2.5%
Metals & Mining			0.7%
Multiline Retail			0.5%
Multi-Utilities			0.1%
Office Electronics			0.1%
Oil, Gas & Consumable Fuels			6.1%
Paper & Forest Products			0.2%
Personal Products			0.1%
Pharmaceuticals			13.5%
Pipelines			0.1%
Real Estate Investment Trusts (REITS)			1.7%
Real Estate Management & Development			0.1%
Road & Rail			0.7%
Semiconductors & Semiconductor Equipment			2.1%
Software			5.4%
Specialty Retail			2.0%
Textiles, Apparel & Luxury Goods			0.5%
Tobacco			1.2%
Trading Companies & Distributors			0.1%
Water Utilities			0.4%
Wireless Telecommunication Services			0.3%
Total			100.0%

Portfolio holdings and allocations are subject to change. As of October 31, 2012, percentages in the table above are based on total investments. Such total investments may differ from the percentages set forth in the preceding Portfolio of Investments which are computed using the Fund’s total net assets.

 

See notes to Financial Statements.

Semi-Annual Shareholder Report

 

8

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Huntington EcoLogical  Strategy ETF		October 31, 2012

 

Schedule of Portfolio Investments		(unaudited)

 

Share Amount						Market Value
	Common Stocks (96.5%)
	Air Freight & Logistics (0.9%)
	1,100			C.H. Robinson Worldwide, Inc.		$	66,363
	Auto Components (3.1%)
	3,443			BorgWarner, Inc. †			226,618
	Automobiles (2.2%)
	14,246			Ford Motor Co.			158,985
	Biotechnology (0.9%)
	495			Biogen Idec, Inc. †			68,419
	Capital Markets (2.0%)
	2,255			T. Rowe Price Group, Inc.			146,439
	Chemicals (2.8%)
	1,914			Ecolab, Inc.			133,214
	1,000			Sigma-Aldrich Corp.			70,140
							203,354
	Commercial Services & Supplies (0.7%)
	2,079			TETRA Tech, Inc. †			53,929
	Communications Equipment (1.9%)
	2,310			Qualcomm, Inc.			135,308
	Computers & Peripherals (3.5%)
	330			Apple Computer, Inc.			196,383
	2,431			Fusion-io, Inc. †			57,372
							253,755
	Construction & Engineering (4.2%)
	7,931			MasTec, Inc. †			178,923
	4,873			Quanta Services, Inc. †			126,357
							305,280
	Containers & Packaging (1.0%)
	1,700			Ball Corp.			72,811
	Distributors (3.3%)
	11,264			LKQ Corp. †			235,305
	Electric Utilities (2.5%)
	2,563			NextEra Energy, Inc.			179,564
	Electrical Equipment (3.2%)
	3,201			Emerson Electric Co.			155,024
	2,783			General Cable Corp. †			79,399
							234,423
	Food & Staples Retailing (7.6%)
	1,848			Costco Wholesale Corp.			181,899
	3,938			Whole Foods Market, Inc.			373,046
							554,945
	Food Products (8.5%)
	8,525			Darling International, Inc. †			140,918
	1,826			McCormick & Co., Inc.			112,518

Share Amount						Market Value
	Common Stocks (continued)
	Food Products (continued)
	6,291			The Hain Celestial Group, Inc. †		$	363,621
							617,057
	Gas Utilities (2.2%)
	8,063			Questar Corp.			163,195
	Health Care Equipment & Supplies (2.6%)
	1,529			Becton, Dickinson & Co.			115,715
	1,045			Varian Medical Systems, Inc. †			69,764
							185,479
	Health Care Providers & Services (0.8%)
	1,023			Quest Diagnostics, Inc.			59,048
	Hotels, Restaurants & Leisure (3.7%)
	396			Chipotle Mexican Grill, Inc. †			100,794
	3,564			Starbucks Corp.			163,588
							264,382
	Internet Software & Services (6.7%)
	8,558			eBay, Inc. †			413,265
	110			Google, Inc., Class A †			74,775
							488,040
	IT Services (3.8%)
	1,614			Accenture PLC, Class A			108,800
	2,398			Teradata Corp. †			163,807
							272,607
	Machinery (5.8%)
	759			Cummins, Inc.			71,027
	1,832			Illinois Tool Works, Inc.			112,357
	1,815			SPX Corp.			124,492
	2,805			Tennant Co.			104,963
							412,839
	Media (1.2%)
	1,798			Walt Disney Co.			88,228
	Multi-Utilities (1.0%)
	1,056			Sempra Energy			73,656
	Oil, Gas & Consumable Fuels (3.3%)
	8,184			Spectra Energy Corp.			236,272
	Pharmaceuticals (3.5%)
	1,012			Abbott Laboratories			66,306
	2,684			Johnson & Johnson			190,081
							256,387
	Real Estate Management & Development (1.5%)
	2,200			CBRE Group, Inc., Class A †			39,644
	913			Jones Lang LaSalle, Inc.			70,977
							110,621

 

 

See notes to Financial Statements.

Semi-Annual Shareholder Report

 

9

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Huntington EcoLogical Strategy ETF		(Continued)

 

Share Amount						Market Value
	Common Stocks (continued)
	Semiconductors & Semiconductor Equipment (5.8%)
	2,970			Arm Holdings PLC ADR		$	96,080
	2,321			Cree, Inc. †			70,396
	5,302			Texas Instruments, Inc.			148,932
	3,526			Veeco Instruments, Inc. †			108,248
							423,656
	Software (2.6%)
	1,000			SAP AG ADR			72,900
	1,341			VMware, Inc., Class A †			113,677
							186,577
	Textiles, Apparel & Luxury Goods (2.8%)
	1,411			NIKE, Inc., Class B			128,937
	462			V.F. Corp.			72,294
							201,231

Share Amount						Market Value
	Common Stocks (continued)
	Trading Companies & Distributors (0.9%)
	1,496			Fastenal Co.		$	66,871
	Total Common Stocks (cost $6,750,162)						7,001,644
	Total Investments (96.5%) (cost $6,750,162)						7,001,644
	Other Assets less Liabilities (3.5%)						255,967
	Net Assets (100.0%)					$	7,257,611

 

 

†	Non-income producing security

ADR    American Depositary Receipt

Portfolio of Investments Summary Table (unaudited)

 

		Percentage of Market Value
Air Freight & Logistics			0.9%
Auto Components			3.2%
Automobiles			2.3%
Biotechnology			1.0%
Capital Markets			2.1%
Chemicals			2.9%
Commercial Services & Supplies			0.8%
Communications Equipment			1.9%
Computers & Peripherals			3.6%
Construction & Engineering			4.4%
Containers & Packaging			1.0%
Distributors			3.4%
Electric Utilities			2.6%
Electrical Equipment			3.5%
Food & Staples Retailing			7.9%
Food Products			8.8%
Gas Utilities			2.3%
Health Care Equipment & Supplies			2.6%
Health Care Providers & Services			0.8%
Hotels, Restaurants & Leisure			3.8%
Internet Software & Services			6.8%
IT Services			3.9%
Machinery			5.9%
Media			1.3%
Multi-Utilities			1.0%

 

See notes to Financial Statements.

Semi-Annual Shareholder Report

 

10

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Huntington EcoLogical Strategy ETF		(Continued)
Portfolio of Investments Summary Table (continued)

 

		Percentage of Market Value
Oil, Gas & Consumable Fuels			3.4%
Pharmaceuticals			3.7%
Real Estate Management & Development			1.6%
Semiconductors & Semiconductor Equipment			6.1%
Software			2.6%
Textiles, Apparel & Luxury Goods			2.7%
Trading Companies & Distributors			1.0%
Total			100.0%

Portfolio holdings and allocations are subject to change. As of October 31, 2012, percentages in the table above are based on total investments. Such total investments may differ from the percentages set forth in the preceding Portfolio of Investments which are computed using the Fund’s total net assets.

 

See notes to Financial Statements.

Semi-Annual Shareholder Report

 

11

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Statements of Assets and Liabilities

 

October 31, 2012 (Unaudited)

 

		Huntington US Equity Rotation Strategy ETF				Huntington EcoLogical Strategy ETF
Assets:
Investments, at value (Cost $5,611,612 and $6,750,162)		$	5,693,306			$	7,001,644
Cash equivalents			155,098				219,530
Deferred offering costs			26,445				22,952
Dividends and interest receivable			5,119				3,966
Receivable for investments sold			—				283,872
Receivable from advisor			37,278				31,709
Reclaims receivable			11				—
Prepaid expenses			37,507				76,631
Total Assets			5,954,764				7,640,304
Liabilities:
Payable for investments purchased			—				344,811
Other payables			1,234				1,323
Accrued offering costs			26,445				22,952
Accrued expenses:
Investment advisor fees			3,045				3,722
Administration			6,567				1,054
Fund accounting			1,049				432
Legal and audit fees			5,673				5,423
Compliance services			240				206
Consulting			1,603				1,371
Trustee			1,079				1,399
Total Liabilities			46,395				382,693
Net Assets		$	5,907,829			$	7,257,611
Net Assets consist of:
Capital		$	5,758,500			$	7,015,556
Accumulated net investment income (loss)			11,272				2,242
Accumulated net realized gains (loss) on investments and foreign currency			56,363				(11,669	)
Net unrealized appreciation (depreciation) on investments and foreign currency			81,694				251,482
Net Assets		$	5,907,829			$	7,257,611
Shares of Beneficial Interest Outstanding (unlimited number of shares authorized, no par value):			225,001				278,999
Net Asset Value (offering and redemption price per share):		$	26.26			$	26.01

 

See notes to Financial Statements.

Semi-Annual Shareholder Report

 

12

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Statements of Operations

 

For the period ended October 31, 2012

 

		Huntington US Equity Rotation Strategy ETF				Huntington EcoLogical Strategy ETF
		For the period(a) July 23, 2012 through October 31, 2012(b)				For the period June 18, 2012(a) through October 31,  2012(b)
Investment Income:
Dividend income		$	25,279			$	25,466
Total Investment Income			25,279				25,466
Expenses:
Advisory fees			8,766				14,553
Administration fees			15,525				16,643
Fund accounting fees			1,808				1,542
Custodian fees			289				309
Trustee fees			2,381				2,277
Compliance services fees			457				489
Legal and audit fees			15,566				16,029
Printing fees			1,522				1,632
Consulting fees			3,044				3,263
Insurance fees			1,522				1,632
Offering costs			10,079				13,572
Other fees			6,126				7,394
Total Expenses before fee reductions			67,085				79,335
Expenses contractually waived or reimbursed by the Advisor			(42,999	)			(42,539	)
Reimbursement of offering costs by Advisor			(10,079	)			(13,572	)
Total Net Expenses			14,007				23,224
Net Investment Income (Loss)			11,272				2,242
Realized and Unrealized Gains (Losses) on Investments and Foreign Currency Transactions:
Net realized gains (losses) on investments and foreign currency transactions			179				(2,427	)
Net realized gains (losses) on in-kind redemptions of investments			56,184				(9,242	)
Change in unrealized appreciation/depreciation on investments and foreign currency transactions			81,694				251,482
Net Realized and Unrealized Gains (Losses) on Investments and Foreign Currency Transactions			138,057				239,813
Change in Net Assets Resulting From Operations		$	149,329			$	242,055

(a)	Commencement of operations.

(b)

Unaudited

 

See notes to Financial Statements.

Semi-Annual Shareholder Report

 

13

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Statements of Changes in Net Assets

 

		Huntington US Equity Rotation Strategy ETF				Huntington EcoLogical Strategy ETF
		For the period July 23, 2012(a) through October 31, 2012(b)				For the period June 18, 2012(a) through October 31,  2012(b)
From Investment Activities:
Operations:
Net investment income (loss)		$	11,272			$	2,242
Net realized gains (losses) on investments and foreign currency transactions			56,363				(11,669	)
Change in unrealized appreciation/depreciation on investments and foreign currency transactions			81,694				251,482
Change in net assets resulting from operations			149,329				242,055
Change in net assets from capital transactions			5,758,475				6,915,581
Change in net assets			5,907,804				7,157,636
Net Assets:
Beginning of period			25				99,975
End of period		$	5,907,829			$	7,257,611
Accumulated net investment income (loss)		$	11,272			$	2,242
Capital Transactions:
Proceeds from shares issued		$	7,054,188			$	7,529,517
Cost of shares redeemed			(1,295,713	)			(613,936	)
Change in net assets resulting from capital transactions		$	5,758,475			$	6,915,581
Share Transactions:
Issued			275,000				300,000
Redeemed			(50,000	)			(25,000	)
Change in shares			225,000				275,000

(a)	Commencement of operations.

(b)

Unaudited

 

See notes to Financial Statements.

Semi-Annual Shareholder Report

 

14

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[T HIS P AGE I NTENTIONALLY L EFT B LANK ]

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Financial Highlights FOR THE PERIODS INDICATED

 

Huntington Strategy Shares

Selected data for a share of beneficial interest outstanding throughout the periods indicated

 

		Net Asset Value, beginning of period				Net investment income (loss)				Net realized and unrealized gains (losses)  on investments				Total from investment activities
Huntington US Equity Rotation Strategy ETF Fund
July 23, 2012(c) through October 31, 2012(d)		$	25.00				0.05				1.21				1.26
Huntington EcoLogical Strategy ETF Fund
June 18, 2012(c) through October 31, 2012(d)		$	25.00				0.01				1.00				1.01

(a)	Not annualized for periods less than one year.

(b)	Annualized for periods less than one year.

(c)	Commencement of operations.

(d)

Unaudited

 

See notes to Financial Statements.

Semi-Annual Shareholder Report

 

16

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Net Asset Value, end of period				Total Return (excludes sales charge)(a)		Ratio of Net Expenses to Average Net Assets(b)				Ratio of Gross Expenses to Average Net Assets(b)				Ratio of Net Investment Income (Loss) to Average Net Assets(b)				Net Assets at end of period (000’s)				Portfolio Turnover(a)
$	26.26			5.04%			0.95	%			3.87	%			0.76	%		$	5,908				—	%
$	26.01			4.04%			0.95	%			2.68	%			0.09	%		$	7,258				13	%

 

See notes to Financial Statements.

Semi-Annual Shareholder Report

 

17

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Notes to Financial Statements

 

October 31, 2012 (Unaudited)

 

1.	Organization

The Huntington Strategy Shares (the “Trust”) was organized on September 7, 2010 as a Delaware Statutory Trust and is registered under the Investment Company Act of 1940 (the “1940 Act”), as an open-end management investment company. The Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest (“Shares”) in one or more series representing interests in separate portfolios of securities. Currently, the Trust offers its shares in two separate series: Huntington US Equity Rotation Strategy ETF (the “US Equity Rotation Fund”) and Huntington EcoLogical Strategy ETF (the “EcoLogical Strategy Fund”) (individually referred to as a “Fund,” or collectively as the “Funds.”). Each Fund is an actively managed exchange-traded fund. The investment objective of both Funds is to seek capital appreciation, and the Funds do not seek to replicate a specified index. The Funds’ prospectus provides a description of each Fund’s investment objectives, policies, and strategies. The assets of each Fund are segregated and a shareholder’s interest is limited to the Fund in which shares are held.

Shares of each of the Funds are listed and traded on the NYSE Arca, Inc. Market prices for the Shares may be different from their net asset value (“NAV”). Each Fund issues and redeems Shares on a continuous basis at NAV only in large blocks of Shares, currently 25,000 Shares, called “Creation Units.” Creation Units are issued and redeemed principally in-kind for securities included in a specified universe. Once created, Shares generally trade in the secondary market at market prices that change throughout the day in amounts less than a Creation Unit.

Under the Trust’s organizational documents, its officers and Board of Trustees (“Trustees”) are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Trust may enter into contracts with vendors and others that provide for general indemnifications. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust. However, based on experience, the Trust expects that risk of loss to be remote.

 

2.	Significant Accounting Policies

The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.

A.	Investment Valuations

The Funds hold investments at fair value. Fair value is defined as the price that would be expected to be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques used to determine fair value are further described below.

Security values are ordinarily obtained through the use of independent pricing services, in accordance with procedures adopted by the Trust’s Board of Trustees (the “Board”). Pursuant to these procedures, the Funds may use a pricing service, bank, or broker-dealer experienced in such matters to value the Funds’ securities. When reliable market quotations are not readily available for any security, the fair value of that security will be determined by a committee established by the Board in accordance with procedures adopted by the Board. The fair valuation process is designed to value the subject security at the price the Portfolio would reasonably expect to receive upon its current sale. Additional consideration is given to securities that have experienced a decrease in the volume or level of activity or to circumstances that indicate that a transaction is not orderly.

The Trust has a three-tier fair value hierarchy that is dependent upon the various “inputs” used to determine the value of the Portfolios’ investments. These inputs are summarized in the three broad levels listed below:

 

•

Level 1—quoted prices in active markets for identical assets.

•

Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

•

Level 3—significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.

Equity securities (including foreign equity securities) traded on a securities exchange are valued at the last reported sales price on the principal exchange. Equity securities quoted by NASDAQ are valued at the NASDAQ official closing price. If there is no reported sale on the principal exchange, and in the case of over-the-counter securities, equity securities are valued at a bid price estimated by the security pricing service. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.

Fixed Income Securities (Corporate, Municipal, and Foreign Bonds and U.S. Government and Agency Securities) are valued using various inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and market events, and are typically categorized as Level 2 in the fair value hierarchy.

 

 

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In addition to the inputs discussed above for fixed income securities, asset backed securities are valued using new issue data, monthly payment information and collateral performance and are typically categorized as Level 2 in the fair value hierarchy.

Short-term obligations with maturities of 60 days or less are valued at amortized cost, which constitutes fair value as determined by the Board, and are typically categorized as Level 2 in the fair value hierarchy.

Forward currency contracts are valued using market quotes posted by major currency dealers and are typically categorized as Level 2 in the fair value hierarchy.

Shares of mutual funds are valued at their respective daily net asset value and are typically categorized as Level 1 in the fair value hierarchy.

Foreign securities quoted in foreign currencies are translated in U.S. dollars at the foreign exchange rate in effect as of the close of the New York Stock Exchange (NYSE) (generally 4:00 p.m. Eastern Time), on the day the value of the foreign security is determined.

 

 

The following is a summary of the inputs used to value the Funds’ investments as of October 31, 2012, while the breakdown, by category, of common stocks is disclosed in the Schedule of Investments for each Fund.

 

		LEVEL 1				Total Investments
Huntington US Equity Rotation Fund
Common Stocks(1)		$	5,693,306			$	5,693,306
Total Investments		$	5,693,306			$	5,693,306
Huntington EcoLogical Strategy Fund
Common Stocks(1)		$	7,001,644			$	7,001,644
Total Investments		$	7,001,644			$	7,001,644

 

(1)	Please see Schedule of Investments for industry classifications.

 

The Trust’s policy is to disclose transfers between fair value hierarchy levels based on valuations at the end of the reporting period. There were no transfers between Level 1, 2, or 3 as of October 31, 2012. As of October 31, 2012, no securities were categorized as Level 2 or Level 3.

 

B.	Foreign Currency Transactions

The accounting records of the Funds are maintained in U.S. dollars. Financial instruments and other assets and liabilities of a Fund denominated in a foreign currency, if any, are translated into U.S. dollars at current exchange rates. Purchases and sales of financial instruments, income receipts and expense payments are translated into U.S. dollars at the exchange rate on the date of the transaction.

The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates from those resulting from changes in market values of financial instruments. Such fluctuations are included with the net realized and unrealized gains or losses from investments. Realized foreign exchange gains or losses arise from transactions in financial instruments and foreign currencies, currency exchange fluctuations between the trade and settlement date of such transactions, and the difference between the amount of assets and liabilities recorded and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, including financial instruments, resulting from changes in currency exchange rates.

The Funds may be subject to foreign taxes on gains in investments or currency repatriation. The Funds accrue such

taxes, as applicable, based on their current interpretation of tax rules in the foreign markets in which they invest.

 

C.	Security Transactions and Related Income

During the period, investment transactions are accounted for no later than the first calculation of the NAV on the business day following the trade date. For financial reporting purposes, however, security transactions are accounted for on the trade date on the last business day of the reporting period. Discounts and premiums on securities purchased are amortized over the lives of the respective securities. Securities gains and losses are calculated on the identified cost basis. Interest income and expenses are accrued daily. Dividends, less foreign tax withholding (if any), are recorded on the ex-dividend date.

 

D.	Dividends and Distributions to Shareholders

Dividends from net investment income, if any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually.

The amount of dividends from net investment income and net realized gains are determined in accordance with the federal income tax regulations, which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g. foreign currency gain/loss, paydowns, distributions and income received from pass through investments, and net investment loss adjustments), such amounts are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. Temporary differences are primarily due to market discounts,

 

 

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Notes to Financial Statements (Continued)

 

capital loss carryforwards and losses deferred due to wash sales, straddles, and return of capital from investments.

The Funds may own shares of real estate investments trusts (“REITs”) which report information on the source of their distributions annually. Distributions received from investments in REITs in excess of income from underlying investments are recorded as realized gain and/or as a reduction to the cost of the individual REIT.

 

E.	Allocation of Expenses

Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionally among all Funds within the Trust in relation to the net assets of each Fund or on another reasonable basis.

 

3.	Investment Advisory Fee and Other Transactions with Affiliates

 

A.	Investment Advisory Fees

Huntington Asset Advisors, Inc. (the “Advisor”), a wholly owned subsidiary of The Huntington National Bank (“Huntington”), serves as the Funds’ Investment Advisor. The Advisor receives an annual fee for its services, computed daily and paid monthly, of 0.60% of each Fund’s average daily net assets.

The Advisor has contractually agreed to reduce its fees and/or reimburse each Fund’s expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses) in order to limit total annual fund operating expenses after fee waivers and expense reimbursement to 0.95% of the Funds’ annual daily net assets (“Expense Cap”). The Expense Cap will remain in effect until at least September 30, 2013. The Expense Cap may be terminated earlier only upon the approval of the Board. The Advisor may recoup fees reduced or expenses reimbursed at any time within three years from the year such expenses were incurred, so long as the repayment does not cause the Expense Cap to be exceeded.

 

B.	Administration, Transfer Agent and Accounting Fees

Citi Fund Services Ohio, Inc. (“Citi”) provides financial administration, transfer agency and portfolio accounting services to the Trust. Citi performs certain services on behalf of the Trust including but not limited to: (1) preparing and filing the Trust’s periodic financial reports on forms prescribed by the SEC; (2) calculating Fund expenses and making required disbursements; (3) calculating Fund performance data; and (4) providing certain compliance support services. As portfolio accountant, Citi maintains certain financial records of the Trust and provides accounting services to each Fund which includes the daily calculation of each Fund’s net asset value (“NAV”). Citi also performs certain other services on behalf of the Trust including providing financial information for the Trust’s federal and state tax returns and financial reports required to be filed with the SEC.

For these services, each Fund pays Citi a fee accrued daily and paid monthly based on a percentage of each Fund’s average net assets, subject to an annual minimum fee.

Pursuant to an Exchange-Traded Fund Services Agreement with the Trust, Huntington Asset Services, Inc. (“HASI”) maintains the corporate records of the Trust, including minutes of meetings of the Board, and provides administrative support services in connection with updates to the Trust’s registration statement. HASI is a wholly-owned subsidiary of Huntington Bancshares Incorporated. Under the agreement, The Trust will pay HASI a fee of $20,000 for services during the first year, and $30,000 for services during each of the second and third years. Effective November 1, 2012, the fee paid to HASI will increase to $60,000, prorated, during the first year, and $70,000 for services during the second and third years.

 

C.	Distribution and Shareholder Services Fees

SEI Investments Distribution Co. (the “Distributor”) is the principal underwriter and distributor of each Fund’s shares. The Trust has adopted but has yet to implement a Rule 12b-1 Distribution Plan (the “Plan”). This Plan is designed to compensate or reimburse financial intermediaries (including the Distributor, the Advisor, and their affiliates) for activities principally intended to result in the sale of Fund shares such as advertising and marketing of shares (including printing and disseminating prospectuses and sales literature to prospective shareholders and financial intermediaries) and providing incentives to financial intermediaries to sell shares. The Plan is also designed to cover the cost of administrative services performed in conjunction with the sale of shares, including, but not limited to, shareholder services, recordkeeping services and educational services, as well as the costs of implementing and operating the Plan. In accordance with the Plan, the Distributor may enter into agreements with financial intermediaries and dealers relating to distribution and/or marketing services with respect to the Funds. Pursuant to the Plan, the Funds may pay a 12b-1 fee not to exceed 0.25% per year of each Fund’s average daily net assets. No 12b-1 fee is currently paid by the Funds and the Board has not approved any payments under the plan.

 

D.	Custodian Fees

Citibank, N.A (the “Custodian”), an affiliate of Citi, serves as custodian for each Fund and safeguards and holds the Fund’s cash and securities, settles each Fund’s securities transactions and collects income on Fund investments. The Custodian receives fees based on the level of each Fund’s average daily net assets for the period, plus out-of-pocket expenses.

 

E.	Compliance Services

The Trust has contracted with Huntington to provide a Chief Compliance Officer to the Trust, for which it pays an annual fee of $2,000.

 

F.

General

Certain officers of the Trust are officers, directors and/or trustees of the above companies.

 

4.	Organization and Offering Costs

All costs incurred by the Trust in connection with the organization of the Trust were paid by the Advisor. The organization costs are not subject to recoupment by the Advisor in subsequent fiscal periods.

 

 

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Costs incurred in connection with the offering and initial registration of the Trust have been deferred and are being amortized on a straight-line basis over the first twelve months of each Fund’s operations.

 

5.	Investment Transactions

Purchases and sales of investments, excluding in-kind transactions and short-term investments, for the period ended October 31, 2012 were as follows:

 

		Purchases				Sales
Huntington US Equity Rotation Fund		$	0			$	5,689
Huntington EcoLogical Strategy Fund			800,195				699,349

Purchases and sales of in-kind transactions for the period ended October 31, 2012 were as follows:

 

		Purchases				Sales
Huntington US Equity Rotation Fund		$	6,810,219			$	1,249,282
Huntington EcoLogical Strategy Fund			7,250,613				589,628

 

6.	Capital Share Transactions

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at net asset value. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets.

The consideration for the purchase of Creation Units of a Fund generally consists of the in-kind deposit of a designated basket of securities, which constitutes an optimized representation of the securities of that Fund’s underlying index, and an amount of cash.

From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as “Due from custodian” and securities related to in-kind

redemptions are reflected as “Securities related to in-kind transactions” in the Statements of Assets and Liabilities.

During the period the Funds delivered securities in exchange for the redemption of capital shares (redemptions-in-kind). Securities and cash were transferred in exchange for capital share redemptions at fair value. For financial reporting purposes, the Funds recorded net realized gains and losses in connection with each redemption-in-kind transaction.

For the period ended October 31, 2012, the fair value of securities transferred for redemptions-in-kind and the net

realized gains and losses recorded in connection with the transactions were as follows:

 

		Fair Value				Net Realized Gains/(Losses)
Huntington US Equity Rotation Fund		$	(1,249,282	)		$	56,184
Huntington EcoLogical Strategy Fund			(589,628	)			(9,241	)

In addition, during the period the Funds received securities in exchange for subscriptions of capital shares (subscriptions-in-kind). For the period ended October 31, 2012, the fair value of securities received for subscriptions were as follows:

 

		Fair Value
Huntington US Equity Rotation Fund		$	6,810,219
Huntington EcoLogical Strategy Fund			7,250,613

 

7.	Federal Income Taxes

It is the policy of each Fund to qualify or continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve it from all, or substantially all, federal income taxes.

The Trust has evaluated tax positions taken or expected to be taken in the course of preparing each Fund’s tax returns to determine whether it is more-likely-than not (i.e., greater than 50-percent chance) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. Tax positions taken in tax years remain subject to examination by tax authorities (generally three years for federal income tax purposes). The determination has been made that there are not any uncertain tax positions that would require the Funds to record a tax liability and, therefore, there is no impact to the Funds’ financial statements.

 

 

As of October 31, 2012, the tax cost of securities and the breakdown of unrealized appreciation (depreciation) for each Fund was as follows:

 

		Tax Cost of Securities				Unrealized Appreciation				Unrealized Depreciation				Net Unrealized Appreciation/ (Depreciation)
Huntington US Equity Rotation Fund		$	5,766,709			$	211,276			$	(129,582	)		$	81,694
Huntington EcoLogical Strategy Fund			6,969,692				373,585				(122,103	)			251,482

 

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Notes to Financial Statements (Continued)

 

The differences between book-basis and tax-basis unrealized appreciation/depreciation are attributable primarily to: tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains/losses on investments in passive foreign investment companies, and the difference between book and tax amortization methods for acquisition premium and market discount.

 

8.	Investment Risks

 

ETF

Risk

The NAV of a Fund can fluctuate up or down, and you could lose money investing in a Fund if the prices of the securities owned by the Fund decline. In addition, a Fund may be subject to the following additional risks: (1) the market price of a Fund’s shares may trade above or below their NAV; (2) an active trading market for a Fund’s shares may not develop or be maintained; or (3) trading of a Fund’s shares may be halted if the listing exchange’s officials deem such action appropriate, the shares are delisted from the exchange, or the

activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally.

 

Ecological

Investment Risk

The EcoLogical Strategy Fund’s ecological investment criteria could cause it to underperform funds that do not maintain ecological investment criteria. In order to comply with its ecological investment criteria, the EcoLogical Strategy Fund may be required to forego advantageous investment opportunities or sell investments at inappropriate times. The EcoLogical Strategy Fund’s ecological investment criteria may result in the EcoLogical Strategy Fund investing in industry sectors that are not performing as well as others.

 

9.	Subsequent Events

Management of the Funds has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date these financial statements were issued. Based upon this evaluation, no additional disclosures or adjustments were required to the financial statements as of October 31, 2012.

 

 

 

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BOARD OF TRUSTEES’ CONSIDERATION OF INVESTMENT ADVISORY AGREEMENT FOR THE HUNTINGTON US EQUITY ROTATION STRATEGY ETF AND HUNTINGTON ECOLOGICAL STRATEGY ETF (the “Funds”)

At a meeting held on May 11, 2011, the Board, including a majority of the independent Trustees, approved the investment advisory agreement (the “Advisory Agreement”) between Huntington Asset Advisors, Inc. (the “Advisor”) and the Funds. Pursuant to the Advisory Agreement between the Advisor and the Funds, the Advisor provides advisory services to the Funds.

During the review process, the Board received assistance and advice from, and met separately with, independent legal counsel. In approving the Advisory Agreement, the Board, including a majority of the independent Trustees, considered many factors, the most material of which were: (1) the nature, extent and quality of the services to be provided to the Funds by the Advisor in relation to the advisory fees; (2) whether the Advisor will realize economies of scale in providing services to the Funds and if these economies will be shared with the Funds; and (3) a comparison of the fees of comparable funds. Performance, costs of services and profitability were not considered as the Funds have not commenced operations.

Nature, Extent and Quality of Services in Relation to the Advisory Fees. In considering the nature, extent and quality of the services to be provided by the Advisor, the Board reviewed information relating to the Advisor’s operations and personnel. Among other things, the Advisor provided descriptions of its organizational and management structure, biographical information about its supervisory and portfolio management staff, and financial information. The Trustees also took into account the financial condition of the Advisor with respect to its ability to provide the services required under the Advisory Agreement. The Board was very familiar with the services to be provided by the Advisor as the Advisor serves as such for the other funds in The Huntington Funds complex. The Board determined that the nature, extent and quality of the services to be provided by the Advisor, in relation to the advisory fees, were acceptable.

Economies of Scale in Providing Services to the Funds and Whether these Economies Will be Shared with the Funds. The Board also considered the effect of the Funds’ size on its fees. The Board considered the fees under the Advisory Agreement and possible economies of scale that may be realized as the assets of the Funds grow. The Board also noted that if the Funds’ assets increase over time, the Advisor may realize economies of scale. The Board concluded that, as new funds, the Funds would likely not be large enough to realize economies of scale. In addition, the Board also noted that the administration fee charged to the Funds included fee breakpoints, which allowed the Funds to realize economies of scale as the assets of the Funds increase over time.

Comparison of the Fees and Total Expenses of Comparable Funds. With respect to the Funds’ fee, the Board considered comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board noted that the proposed fee and total expenses appeared to be in line with the comparisons.

Other Considerations. The Board also requests and receives substantial and detailed information about the other funds in The Huntington Complex on a regular basis. The Advisor provides much of this information at each regular meeting of the Board, and furnishes additional reports in connection with the Board’s formal review of other advisory arrangements. The Board may also receive information in between regular meetings relating to particular matters as the need arises. The Board’s evaluation of the advisory relationship also included reports covering such matters as: the Advisor’s investment philosophy, personnel, and processes; operating strategies; the other Huntington Funds’ short- and long term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitive funds and/or other benchmarks, as appropriate) and comments on reasons for performance. The Board also considers reports concerning the other Huntington Funds’ expenses (including the advisory fee itself and the overall expense structure of the other Huntington Funds, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the use and allocation of brokerage commissions derived from trading the other Huntington Funds’ portfolio securities; the nature and extent of the advisory and other services provided to the other Huntington Funds by the Advisor and its affiliates; compliance and audit reports concerning the other Huntington Funds (including communications from regulatory agencies), as well as the Advisor’s

 

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responses to any issues raised therein; and relevant developments in the mutual fund industry and how the other Huntington Funds and/or the Advisor are responding to them. In the course of their deliberations regarding the Advisory Agreement, the Board also evaluated, among other things, the Advisor’s ability to supervise the Funds’ other service providers and their compliance programs.

The Board based its decision to approve the Advisory Agreement on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. The Board did not consider any one of the factors identified above to be determinative.

 

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VOTING PROXIES ON FUND PORTFOLIO SECURITIES

A copy of the policies and procedures that the Funds use to determine how to vote proxies relating to securities held in the Funds’ portfolios, as well as a record of how the Funds voted any such proxies during the most recent 12-month period ended June 30, is available without charge and upon request by calling 1-855-HSS-ETFS or 1-855-477-3837 or at www.huntingtonstrategyshares.com. This information is also available from the EDGAR database on the SEC’s website at www.sec.gov.

QUARTERLY PORTFOLIO SCHEDULE

The Funds file with the SEC a complete schedule of their portfolio holdings, as of the close of the first and third quarters of their fiscal year, on “Form N-Q.” These filings are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. (call 1-202-551-8090 for information on the operation of the Public Reference Room.) You may also access this information at www.huntingtonstrategyshares.com by selecting “Form N-Q”.

 

Huntington Asset Advisors, Inc., a wholly-owned subsidiary of The Huntington National Bank is the Investment Advisor of The Huntington Strategy Shares. Huntington Asset Services, Inc. maintains corporate records of the Funds, and is affiliated with Huntington Bancshares. Citi Fund Services Ohio, Inc. provides Administration, Transfer Agency and Accounting services to the Funds, while an affiliate, Citibank, N.A. is the Custodian to the Funds. SEI Investments Distribution Co is the principal underwriter and distributor of each Fund’s shares.

Exchange Traded Funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in Exchange Traded Funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by a prospectus which contains facts concerning the Funds’ objectives and policies, management fees, expenses and other information.

 

 

 

Cusip 446698102		Cusip 446698201

 

 

Huntington Funds Shareholder Services: 1-855-477-3837

 

 

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Item 2. Code of Ethics.

Not applicable – only for annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable – only for annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable – only for annual reports.

Item 5. Audit Committee of Listed Registrants.

The Registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are Eddie R. Munson, David S. Schoedinger, Tadd C. Seitz, Mark D. Shary (Chairman), William H. Zimmer, III and Thomas J. Westerfield.

Item 6. Schedule of Investments.

(a) Included as part of report to stockholders under Item 1.

(b) Not applicable.

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Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. Controls and Procedures.

(a) The Registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that those disclosure controls and procedures provide reasonable assurance that material information required to be disclosed by the Registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b) The Registrant’s principal executive officer and principal financial officer are aware of no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that occurred during the second fiscal quarter of 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. Exhibits.

(a)(1) Not applicable - only for annual reports.

(a)(2) Separate certifications by the Registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached hereto.

(a)(3) Not applicable.

(b) A certification by the Registrant’s principal executive officer and principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940, is attached hereto.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)     Huntington Strategy Shares
By		(Signature and Title)		/s/ R. Jeffrey Young
				R. Jeffrey Young, Chief Executive Officer

 

Date	March 5, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By		(Signature and Title)		/s/ R. Jeffrey Young
				R. Jeffrey Young, Chief Executive Officer

 

Date	March 5, 2013

 

By		(Signature and Title)		/s/ Robert Silva
				Robert Silva, Treasurer

 

Date	March 5, 2013