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Loncar Cancer Immunotherapy ETF
Ticker: CNCR
Loncar China BioPharma ETF
Ticker: CHNA
Loncar ETFs
Letters to Shareholders
Performance Summaries
Portfolio Allocations
Schedules of Investments
Statements of Assets and Liabilities
Statements of Operations
Statements of Changes in Net Assets
Report of Independent Registered Public Accounting Firm
Trustees and Officers
Expense Examples
Review of Liquidity Risk Management Program
Approval of Sub-Advisory Agreement & Board Consideration
Federal Tax Information
Information About Portfolio Holdings
Information About Proxy Voting
Frequency Distribution of Premiums and Discounts
Letter to Shareholders
Dear Shareholders,
On behalf of the entire team, we want to express our appreciation for the confidence you have placed in the Loncar Cancer Immunotherapy ETF ("CNCR" or the "Fund"). The following information pertains to the current fiscal period of September 1, 2021 through August 31, 2022 (the "current fiscal period"). The Fund seeks to track the total return performance, before fees and expenses, of the Loncar Cancer Immunotherapy Index (the "Index"). The Index tracks the performance of a basket of companies that develop therapies to treat cancer by harnessing the body's own immune system. It contains both leading large pharmaceutical companies and growth-oriented biotechnology companies.
The Fund had negative performance during the current fiscal period. The market price for CNCR decreased -45.52% and the NAV decreased -45.54% while the S&P 500 Index®, a broad market index, decreased -11.23% over the same period. The Fund's Index returned -45.03%.
This period has been very difficult for biotechnology companies in the stock market, including for immunotherapy companies. We believe a handful of factors have negatively impacted equity prices. For example, while biotechnology companies benefited from investor interest early on during the pandemic, the successful development and rollout of covid vaccines may have led some investors to look to other areas of the stock market starting in the second half of 2021. An illustration of that is how funding on the capital markets for biotechnology companies has nearly ground to a halt lately, with the number of initial public offerings of biotechnology companies and follow-on offerings of already listed biotechnology companies during this period being a fraction of what has been seen in prior periods. Additionally, many of the fund's holdings are development-stage companies that do not yet earn revenue from drugs on the market, and risk assets like that across many sectors of the stock market have been challenged during this period where inflation and interest rates have been a focus. We believe these and other factors made the fiscal period a historically difficult one.
At the same time, we are encouraged by the fundamental scientific progress being made by immunotherapy companies. For example, recently we saw the historic approval by the U.S. Food & Drug Administration (FDA) of a LAG-3 immunotherapy antibody, which is now the third type of checkpoint inhibitor to reach the market. Additionally, history was also made in January when FDA approved the first ever T-cell receptor-based immunotherapy for uveal melanoma. Furthermore, we view the recent approval of the Yescarta CD19 CAR-T in second line large B-cell lymphoma as an important milestone. This treatment outperformed stem cell transplants in a head-to-head study, which had been the standard of care for those patients for decades. This kind of progress strengthens our belief that immunotherapies like CAR-T can move into earlier stages of treatment and become a mainstay of cancer care. While equity market volatility has been challenging during the period, we believe that succeeding in drug development and positively impacting patients' lives like in the above examples is how biotechnology companies create fundamental long-term value.
(Unaudited) (Continued)
For the current fiscal period, the best-performing constituents of the Fund were Argenx SE (ARGX); Merck & Company, Inc. (MRK) and Legend Biotech Corporation (LEGN).
For the current fiscal period, the worst-performing constituents of the Fund were I-Mab (IMAB); IGM Biosciences, Inc. (IGMS) and Nektar Therapeutics (NKTR).
The Fund commenced operations on October 13, 2015, and has 1,500,000 outstanding shares as of August 31, 2022.
We appreciate your investment in CNCR.
J. Garrett Stevens
Exchange Traded Concepts, LLC
Must be preceded or accompanied by a prospectus.
Investing involves risk, including the possible loss of principal. Shares of an ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The Fund will invest in immunotherapy companies which are highly dependent on the development, procurement and marketing of drugs and the protection and exploitation of intellectual property rights. A company's valuation can also be greatly affected if one of its products is proven or alleged to be unsafe, ineffective or unprofitable. The costs associated with developing new drugs can be significant, and the results are unpredictable. The process for obtaining regulatory approval by the U.S. Food and Drug Administration or other governmental regulatory authorities is long and costly and there can be no assurance that the necessary approvals with be obtained and maintained. The Fund may invest in foreign securities, which involve political, economic, currency risk, greater volatility, and differences in accounting methods. The Fund is non-diversified meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund. The Fund invests in smaller companies, which may have more limited liquidity and greater volatility compared to larger companies. The Fund is not actively managed and may be affected by a general decline in market segments related to the Index. The Fund invests in securities included in, or representative of securities included in, the Index, regardless of their investment merits. The performance of the Fund may diverge from that of the Index and may experience tracking error to a greater extent than a fund that seeks to replicate an index.
Standard & Poor's 500® Index (S&P 500® Index) – An index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500® is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe. Quotes for the Index can be found under the symbol "SPX" on the Bloomberg Professional service and other financial data providers.
The Loncar Cancer Immunotherapy Index is an index of 30 securities that have a strategic focus on the area of cancer immunotherapy or harnessing the immune system to fight cancer. Quotes for the Index can be found under the symbol "LCINDX" on the Bloomberg Professional service and other financial data providers.
One may not directly invest in an index.
Past performance is not a guarantee of future results.
Fund holdings are subject to change and are not a recommendation to buy or sell any security. For a complete listing of the Fund's holdings please view the schedule of investments in this report. The Loncar Cancer Immunotherapy ETF is distributed by Quasar Distributors, LLC. Loncar Investments is the index provider of the Fund. INDXX, LLC helps Loncar with risk management and index construction.
On behalf of the entire team, we want to express our appreciation for the confidence you have placed in the Loncar China BioPharma ETF ("CHNA" or the "Fund"). The following information pertains to the current fiscal period of September 1, 2021 through August 31, 2022 (the "current fiscal period"). The Fund seeks to track the total return performance, before fees and expenses, of the Loncar China BioPharma Index (the "Index"). The Index tracks the performance of a basket of companies that are leading China's biotech revolution. With a focus on innovators, the Index contains globally listed companies that have a strategic role in growing China's drug industry.
The Fund had negative performance during the current fiscal period. The market price for CHNA decreased -47.59% and the NAV decreased -48.72% while the Nasdaq Biotechnology Index, a broad market index, decreased -27.79% over the same period. The Fund's Index returned -48.33%.
The previous fiscal year has been an incredibly challenging period for securities of China based companies. China's "Zero Covid" policy and resulting lockdowns in some of its largest cities have restricted commerce and interrupted the business operations of many companies during this period. In the biopharmaceutical sector, this has impacted things such as temporary shutdowns of research and development work in some cases, impeding the ability of regulators to inspect manufacturing facilities to approve new medicines, and limiting the ability of sales teams to reach physicians and hospitals. Furthermore, sentiment around the valuation of Chinese securities listed on U.S. exchanges has been negatively impacted by uncertainty around whether Chinese companies will be able to comply with the Holding Foreign Companies Accountable Act and remain listed in the United States.
While the above factors have been challenging for stocks, fundamental positives in science have also occurred that we believe are encouraging. For example, a company held by the fund received the first approval in the world of a convenient subcutaneous injection version of the popular PD-1 inhibitor class of cancer medicines. Another company held by the fund likewise received the world's first approval of a PD-1 x CTLA-4 bi-specific cancer medicine. Furthermore, Western pharmaceutical companies have been licensing Chinese-discovered assets for global development such as when a Western multi-national licensed a Claudin 18.2 x CD3 bi-specific cancer medicine from a company held by the fund. These successes illustrate that world-class innovation in drug development is happening in China today, which is what we ultimately believe will drive long-term value in this sector.
For the current fiscal period, the best-performing constituents of the Fund were Legend Biotech Corporation (LEGN); Ascletis Pharma, Inc. (HKG) and China Resources Pharmaceutical Group, Ltd. (HKSE).
For the current fiscal period, the worst-performing constituents of the Fund were I-Mab (IMAB); CanSino Biologics, Inc. (CASBF) and Burning Rock Biotech, Ltd. (BNR)
The Fund commenced operations on August 14, 2018, and has 300,000 outstanding shares of August 31, 2022.
We appreciate your investment in CHNA.
Investing involves risk, including the possible loss of principal. Shares of an ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. To the extent the Fund invests a significant portion of its assets in the securities of companies of a single country or region, such as China, it is more likely to be impacted by events or conditions affecting that country or region. A significant portion of the Fund's assets will be invested in the biotechnology and pharmaceutical industries, which expose the Fund to the risks of the following sector. Companies in the health care sector are subject to extensive government regulation. The costs associated with developing new drugs can be significant, and the results are unpredictable. Newly developed drugs may be susceptible to product obsolescence due to intense competition from new products and less costly generic products. The process for obtaining regulatory approval by the U.S. Food and Drug Administration or other governmental regulatory authorities is long and costly and there can be no assurance that the necessary approvals will be obtained or maintained. The values of many companies in the health care sector may be significantly affected by such things as the expiration of patents or the loss of, or the inability to enforce, intellectual property rights. The Fund may invest in foreign securities, which involve political, economic, currency risk, greater volatility, and differences in accounting methods. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the investments. The Fund invests in smaller companies, which may have more limited liquidity and greater volatility compared to larger companies. The Fund is considered non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. The Fund is not actively managed and the Fund's sub-adviser would not sell shares of an equity security due to current or projected underperformance of a security, industry or sector, unless that security is removed from the Index or the selling of shares of that security is otherwise required upon a reconstitution of the Index in accordance with the Index methodology. The biopharmaceutical industry in China is strictly regulated and changes in such regulations, including banning or limiting certain products, may have a material adverse effect on the operations, revenues, and profitability of Biopharma Companies. The laws and regulations applicable to the process of administrative approval of medicine and its production in China require entities producing biopharma products to comply strictly with certain standards and specifications promulgated by the government.
The Nasdaq Biotechnology Index -An index designed to track the performance of a set of securities listed on The Nasdaq Stock Market" (Nasdaq®) that are classified as either biotechnology or pharmaceutical companies and is a modified market capitalization weighted index. Quotes for the Index can be found under the symbol "XNBI" on the Bloomberg Professional service and other financial data providers.
The Loncar China BioPharma Index -an index that tracks the performance of a basket of companies that are leading China's biotech revolution. With a focus on innovators, the Index contains globally listed companies that have a strategic role in growing China's drug industry. Quotes for the Index can be found under the symbol "LCHINA" on the Bloomberg Professional service and other financial data providers.
Fund holdings are subject to change and are not a recommendation to buy or sell any security. For a complete listing of the Fund's holdings please view the schedule of investments in this report. The Loncar China BioPharma ETF is distributed by Quasar Distributors, LLC. Loncar Investments is the index provider of the Fund. INDXX, LLC helps Loncar with risk management and index construction.
Growth of $10,000
Average Annual Returns
Loncar Cancer Immunotherapy ETF - NAV
Loncar Cancer Immunotherapy ETF - Market
Loncar Cancer Immunotherapy Index
S&P 500® Index
This chart illustrates the performance of a hypothetical $10,000 investment made on October 13, 2015 and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The chart assumes reinvestment of capital gains and dividends.
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800-617-0004. Per the prospectus dated December 31, 2021, the gross expense ratio is 0.79%.
(8/14/2018)
Loncar China BioPharma ETF - NAV
Loncar China BioPharma ETF - Market
Loncar China BioPharma Index
This chart illustrates the performance of a hypothetical $10,000 investment made on August 14, 2018 and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The chart assumes reinvestment of capital gains and dividends.
Portfolio Allocation
As of August 31, 2022 (Unaudited)
Industry Group
Percentage of
Net Assets
Biotechnology ♦
Liabilities in Excess of Other Assets
To the extent that the Fund invests more heavily in particular industry groups of the economy, its performance will be especially sensitive to developments that significantly affect those industry groups or strategies. See Note 7 in the Notes to Financial Statements.
Biotechnology Services
Liabilities in Excess of Other Assets +
Represents less than 0.05% of net assets.
Schedule of Investments
Security Description
COMMON STOCKS — 99.9%
Biotechnology — 85.2% (a)
Allogene Therapeutics, Inc. (b)
Arcellx, Inc. (b)
Arcus Biosciences, Inc. (b)
Argenx SE - ADR (b)
BeiGene, Ltd. - ADR (b)
Celularity, Inc. (b)
CRISPR Therapeutics AG (b)
Fate Therapeutics, Inc. (b)
Genmab AS - ADR (b)
IGM Biosciences, Inc. (b)
I-Mab - ADR (b)
ImmunityBio, Inc. (b)
Immunocore Holdings plc - ADR (b)
Instil Bio, Inc. (b)
Iovance Biotherapeutics, Inc. (b)
iTeos Therapeutics, Inc. (b)
Legend Biotech Corporation - ADR (b)
Lyell Immunopharma, Inc. (b)
Merus NV (b)
Nektar Therapeutics (b)
NGM Biopharmaceuticals, Inc. (b)
Nkarta, Inc. (b)
Replimune Group, Inc. (b)
Xencor, Inc. (b)
Pharmaceuticals — 14.7%
AstraZeneca plc - ADR
Gilead Sciences, Inc.
Merck & Company, Inc.
Regeneron Pharmaceuticals, Inc. (b)
TOTAL COMMON STOCKS (Cost $27,075,855)
The accompanying notes are an integral part of these financial statements.
August 31, 2022 (Continued)
SHORT-TERM INVESTMENTS — 0.2%
First American Government Obligations Fund - Class X — 2.04% (c)
TOTAL SHORT-TERM INVESTMENTS (Cost $43,133)
TOTAL INVESTMENTS (Cost $27,118,988) — 100.1%
Liabilities in Excess of Other Assets — (0.1)%
(11,604 )
NET ASSETS — 100.0%
Percentages are stated as a percent of net assets.
American Depositary Receipt.
Non-income producing security.
Rate shown is the annualized seven-day yield as of August 31, 2022.
3SBio, Inc.
Akeso, Inc. (b)
Alphamab Oncology (b)
Ascentage Pharma Group International (b)
Ascletis Pharma, Inc. (b)
Brii Biosciences, Ltd. (b)
CanSino Biologics, Inc. - H Shares
CARsgen Therapeutics Holdings, Ltd. (b)
CK Life Sciences Int'l Holdings, Inc.
Clover Biopharmaceuticals, Ltd. (b)
CStone Pharmaceuticals (b)
Everest Medicines, Ltd. (b)
Genscript Biotech Corporation (b)
Gracell Biotechnologies, Inc. - ADR (b)
HBM Holdings, Ltd. (b)
Hutchmed China, Ltd. - ADR (b)
Immunotech Biopharm, Ltd. (b)
InnoCare Pharma, Ltd. (b)
Innovent Biologics, Inc. (b)
Jacobio Pharmaceuticals Group Company, Ltd. (b)
JW Cayman Therapeutics Company, Ltd. (b)
Keymed Biosciences, Inc. (b)
Kintor Pharmaceutical, Ltd. (b)
LianBio - ADR (b)
Ocumension Therapeutics (b)
Prenetics Global, Ltd. - Class A (b)
Remegen Company, Ltd. - H Shares (b)
Shanghai Haohai Biological Technology Company, Ltd. - H Shares
Shanghai Junshi Biosciences Company, Ltd. - H Shares (b)
Sino Biopharmaceutical, Ltd.
COMMON STOCKS — 99.7% (Continued)
Biotechnology — 55.8% (a) (Continued)
Sirnaomics, Ltd. (b)
Viva Biotech Holdings (b)
Zai Lab, Ltd. - ADR (b)
Biotechnology Services — 10.8%
Hangzhou Tigermed Consulting Company, Ltd. - H Shares
Joinn Laboratories China Company, Ltd. - H Shares
Pharmaron Beijing Company, Ltd. - H Shares
WuXi AppTec Company, Ltd. - H Shares
Wuxi Biologics Cayman, Inc. (b)
Diagnostics — 3.1%
Burning Rock Biotech, Ltd. - ADR (b)
New Horizon Health, Ltd. (b)
Pharmaceutical Distribution — 1.8%
Sinopharm Group Company, Ltd. - H Shares
Pharmaceutical Manufacturing — 2.8%
SSY Group, Ltd.
YiChang HEC ChangJiang Pharmaceutical Company, Ltd. - H Shares (b)
Pharmaceutical services — 1.8%
Asymchem Laboratories Tianjin Company, Ltd. - H Shares
China Medical System Holdings, Ltd.
China Resources Pharmaceutical Group, Ltd.
CSPC Pharmaceutical Group, Ltd.
Grand Pharmaceutical Group, Ltd.
Guangzhou Baiyunshan Pharmaceutical Holdings Company, Ltd. - H Shares
Hansoh Pharmaceutical Group Company, Ltd.
Pharmaceuticals — 23.6% (Continued)
Livzon Pharmaceutical Group, Inc. - H Shares
Luye Pharma Group, Ltd. (b)
Shanghai Fosun Pharmaceutical Group Company, Ltd. - H Shares
Shanghai Pharmaceuticals Holding Company, Ltd. - H Shares
Sihuan Pharmaceutical Holdings Group, Ltd.
Simcere Pharmaceutical Group, Ltd.
Sinco Pharmaceuticals Holdings, Ltd. (b)
TOTAL COMMON STOCKS (Cost $8,330,879)
TOTAL INVESTMENTS (Cost $8,345,841) — 100.0%
Liabilities in Excess of Other Assets — (0.0)% (d)
(2,022 )
Loncar Cancer
Loncar China
Investments in securities, at value*
$ 23,245,943 $ 5,262,571
Foreign currency, at value*
— 1,292
Dividends and interest receivable
23,251,165 5,264,149
Management fees payable
Net Asset Consist of:
Paid-in capital
$ 57,674,782 $ 12,364,803
Total distributable earnings (accumulated deficit)
(34,440,443 ) (7,104,254 )
Net Asset Value:
Shares outstanding ^
Net asset value, offering and redemption price per share
* Identified Cost:
No par value, unlimited number of shares authorized.
For the Year Ended August 31, 2022
Dividends+
$ 153,049 $ 67,381
Total investment income
Net investment income (loss)
(79,897 ) (1,782 )
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on:
(8,989,848 ) (3,205,638 )
Foreign currency transactions
Change in unrealized appreciation (depreciation) on:
Foreign currency translation
— (1 )
Net realized and unrealized gain (loss) on investments
Net increase (decrease) in net assets resulting from operations
$ (17,577,704 ) $ (6,733,355 )
+ Net of foreign taxes withheld
$ — $ 3,097
$ (79,897 ) $ (165,608 )
Net realized gain (loss) on investments
(8,989,848 ) 6,112,868
Change in unrealized appreciation (depreciation) on investments
(8,507,959 ) (248,054 )
(17,577,704 ) 5,699,206
DISTRIBUTIONS TO SHAREHOLDERS
Net distributions to shareholders
(764,347 ) (432,179 )
Tax return of capital to shareholders
(1,552,322 ) —
Total distributions to shareholders
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold
Payments for shares redeemed
Net increase (decrease) in net assets derived from capital share transactions (a)
Net increase (decrease) in net assets
$ (21,204,418 ) $ 4,146,102
Beginning of year
A summary of capital share transactions is as follows:
Shares sold
Shares redeemed
Net increase (decrease)
50,000 (50,000 )
$ (1,782 ) $ (6,799 )
Net realized gain (loss) on investments and foreign currency transactions
Change in unrealized appreciation (depreciation) on investments and foreign currency translation
(1,061,000 ) (57,982 )
Transaction fees (Note 6)
$ 5,260,549 $ 15,287,462
(100,000 ) 25,000
For a capital share outstanding throughout the year
Year Ended August 31,
Net asset value, beginning of year
$ 30.65 $ 26.86 $ 19.54 $ 25.73 $ 25.69
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (1)
(0.06 ) (0.11 ) (0.07 ) (0.05 ) (0.09 )
Net realized and unrealized gain (loss) on investments (2)
(13.25 ) 4.19 7.39 (6.14 ) 0.48
Total from investment operations
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from:
(0.61 ) (0.29 ) — — (0.35 )
(1.24 ) — — — —
Net asset value, end of year
-45.54 % 15.11 % 37.47 % -24.05 % 1.63 %
SUPPLEMENTAL DATA:
Net assets at end of year (000's)
$ 23,234 $ 44,439 $ 40,293 $ 34,195 $ 59,172
RATIOS TO AVERAGE NET ASSETS:
Expenses to average net assets
0.79 % 0.79 % 0.79 % 0.79 % 0.79 %
Net investment income (loss) to average net assets
(0.27 )% (0.37 )% (0.32 )% (0.26 )% (0.34 )%
Portfolio turnover rate (3)
64 % 58 % 53 % 58 % 78 %
Calculated based on average shares outstanding during the period.
Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statements of Operations due to share transactions for the period.
Excludes the impact of in-kind transactions.
For a capital share outstanding throughout the year/period
August 31,
Net asset value, beginning of year/period
(0.01 ) (0.02 ) 0.10 0.14 (0.01 )
(17.65 ) 6.44 9.05 (2.09 ) —
(3.03 ) (0.15 ) (0.04 ) — —
0.00 (4) 0.00 (4) 0.00 (4) 0.01 —
Net asset value, end of year/period
-48.72 % 20.26 % 39.56 % -8.33 % 0.01 %(5)
Net assets at end of year/period (000's)
$ 5,261 $ 15,287 $ 11,974 $ 6,875 $ 2,500
0.79 % 0.79 % 0.79 % 0.79 % 0.79 %(6)
(0.02 )% (0.05 )% 0.40 % 0.64 % (0.78 )%(6)
27 % 44 % 54 % 35 % 0 %(5)
Commencement of operations on August 14, 2018.
Less than $0.005.
Not annualized.
Annualized.
NOTE 1 – ORGANIZATION
Loncar Cancer Immunotherapy ETF and Loncar China BioPharma ETF (individually each a "Fund" or collectively the "Funds") are each a non-diversified series of ETF Series Solutions ("ESS" and the "Trust"), an open-end management investment company consisting of multiple investment series, organized as a Delaware statutory trust on February 9, 2012. The Trust is registered with the Securities and Exchange Commission ("SEC") under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company and the offering of the Funds' shares is registered under the Securities Act of 1933, as amended (the "Securities Act"). The Loncar Cancer Immunotherapy ETF's investment objective is to track the return performance, before fees and expenses, of the Loncar Cancer Immunotherapy Index. The Loncar China BioPharma ETF's investment objective is to track the performance, before fees and expenses, of the Loncar China BioPharma Index. The Loncar Cancer Immunotherapy ETF and Loncar China BioPharma ETF commenced operations on October 13, 2015, and August 14, 2018, respectively.
The end of the reporting period for the Funds is August 31, 2022, and the period covered by these Notes to Financial Statements is the fiscal year ended August 31, 2022 (the "current fiscal period").
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES
The Funds are each an investment company and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 946 Financial Services - Investment Companies.
The following is a summary of significant accounting policies consistently followed by the Funds. These policies are in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP").
Security Valuation. All equity securities, including domestic and foreign common stocks, preferred stocks and exchange traded funds that are traded on a national securities exchange, except those listed on the Nasdaq Global Market®, Nasdaq Global Select Market® and the Nasdaq Capital Market® exchanges (collectively, "Nasdaq") are valued at the last reported sale price on the exchange on which the security is principally traded. Securities traded on Nasdaq will be valued at the Nasdaq Official Closing Price ("NOCP"). If, on a particular day, an exchange-traded or Nasdaq security does not trade, then the mean between the most recent quoted bid and asked prices will be used. All equity securities that are not traded on a listed exchange are valued at the last sale price in the over-the-counter market. If a non-exchange traded security does not trade on a particular day, then the mean between the last
quoted closing bid and asked price will be used. Prices denominated in foreign currencies are converted to U.S. dollar equivalents at the current exchange rate, which approximates fair value.
Investments in mutual funds, including money market funds, are valued at their net asset value ("NAV") per share.
Securities for which quotations are not readily available are valued at their respective fair values in accordance with pricing procedures adopted by the Funds' Board of Trustees (the "Board"). When a security is "fair valued," consideration is given to the facts and circumstances relevant to the particular situation, including a review of various factors set forth in the pricing procedures adopted by the Board. The use of fair value pricing by the Funds may cause the NAV of their shares to differ significantly from NAV that would be calculated without regard to such considerations.
As described above, the Funds utilize various methods to measure the fair value of their investments on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuations methods. The three levels of inputs are:
Level 1 –
Unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access.
Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available; representing the Funds' own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The following is a summary of the inputs used to value the Funds' investments as of the end of the current fiscal period:
Assets^
Common Stocks
$ 23,202,810 $ — $ — $ 23,202,810
43,133 — — 43,133
Total Investments in Securities
$ 5,247,609 $ — $ — $ 5,247,609
See Schedule of Investments to see breakdown of securities by industry group.
As of the end of the current fiscal period, the Funds did not recognize any transfers to or from Level 3.
Federal Income Taxes. The Funds' policy is to comply with the requirements of subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of their net taxable investment income and net capital gains to shareholders. Therefore, no federal income tax provision is required. The Funds plan to file U.S. Federal and various state and local tax returns.
Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund's uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months. Income and capital gain distributions
are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits on uncertain tax positions as income tax expenses in the Statements of Operations. During the current fiscal period, the Funds did not incur any interest or penalties.
Foreign Currency. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments and currency gains or losses realized between the trade and settlement dates on securities transactions from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
The Funds report net realized foreign exchange gains or losses that arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign currency transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds' books 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 values of assets and liabilities, other than investments at fiscal period end, resulting from changes in exchange rates.
Security Transactions and Investment Income. Investment securities transactions are accounted for on the trade date. Gains and losses realized on sales of securities are determined on a specific identification basis. Dividend income is recorded on the ex-dividend date. Non-cash dividends included in dividend income or separately disclosed, if any, are recorded at the fair value of the security received. Interest income is recorded on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Funds' understanding of the applicable tax rules and regulations.
Distributions to Shareholders. Distributions to shareholders from net investment income and from net realized gains on securities are declared and paid by the Funds on, at least, an annual basis. Distributions are recorded on the ex-dividend date.
Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the current fiscal period. Actual results could differ from those estimates.
Share Valuation. The NAV per share of each Fund is calculated by dividing the sum of the value of the securities held by each Fund, plus cash and other assets, minus all liabilities (including estimated accrued expenses) by the total number of outstanding shares for each Fund, rounded to the nearest cent. The Funds' shares will not be priced on the days on which the New York Stock Exchange ("NYSE") is closed for trading. The offering and redemption price per share of each Fund is equal to each Fund's NAV per share.
Guarantees and Indemnifications. In the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.
Reclassification of Capital Accounts. U.S. GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share.
The permanent differences are primarily due to differing book and tax treatments for in-kind transactions, if any. During the current fiscal period, the following table shows the reclassifications made:
Distributable Earnings
(Accumulated Deficit)
$(1,675,388)
$(876,076)
During the current fiscal period, the Funds realized the following net capital gains (losses) resulting from in-kind redemptions, in which shareholders exchanged Fund shares for securities held by the Funds rather than for cash. Because such gains (losses) are not taxable to the Funds, and gains are not distributed to shareholders, they have been reclassified from distributable earnings (accumulated deficit) to paid-in capital.
(844,481 )
Subsequent Events. In preparing these financial statements, management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. There were no events
or transactions that occurred during the period subsequent to the current fiscal period that materially impacted the amounts or disclosures in each Fund's financial statements.
NOTE 3 – COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
Exchange Traded Concepts, LLC (the "Adviser"), serves as the investment adviser to the Funds. Pursuant to an Investment Advisory Agreement ("Advisory Agreement") between the Trust, on behalf of the Funds, and the Adviser, the Adviser provides investment advice to the Funds and oversees the day-to-day operations of the Funds, subject to the direction and control of the Board and the officers of the Trust. Under the Advisory Agreement, the Adviser is also responsible for arranging, in consultation with Vident Investment Advisory, LLC (the "Sub-Adviser") transfer agency, custody, fund administration, and accounting, and other non-distribution related services necessary for the Funds to operate. Under the Advisory Agreement, the Adviser has agreed to pay all expenses of the Funds, except for: the fee paid to the Adviser pursuant to the Advisory Agreement, interest charges on any borrowings, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, accrued deferred tax liability, extraordinary expenses, distribution (12b-1) fees and expenses. For the services it provides to the Funds, each Fund pays the Adviser a unified management fee, which is calculated daily and paid monthly, at an annual rate of 0.79% of each Fund's average daily net assets. The Adviser is responsible for paying the Sub-Adviser.
The Adviser entered into an agreement with Loncar Investments, LLC (the "Sponsor"), pursuant to which the Sponsor agreed to (i) assist with the development of and provide other support to the Fund and (ii) assume the obligation of the Adviser to pay all expenses of the Fund (except the Excluded Expenses) and, to the extent applicable, pay the Adviser a minimum fee for its services under the arrangement. For its services, the Sponsor is entitled to a fee from the Adviser, which is calculated daily and paid monthly, based on a percentage of the average daily net assets of the Fund. The Sponsor does not make investment decisions, provide investment advice, or otherwise act in the capacity of an investment adviser to the Fund.
U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services, LLC ("Fund Services" or "Administrator") acts as the Funds' Administrator and, in that capacity, performs various administrative and accounting services for the Funds. The Administrator prepares various federal and state regulatory filings, reports and returns for the Funds, including regulatory compliance monitoring and financial reporting; prepares reports and materials to be supplied to the Board; and monitors the activities of the Funds' Custodian, transfer agent, and fund accountant. Fund Services also serves as the transfer agent and fund accountant to the Funds. U.S. Bank N.A. (the "Custodian"), an affiliate of Fund Services, serves as the Funds' Custodian.
A Trustee and all officers of the Trust are affiliated with the Administrator, and Custodian.
NOTE 4 – PURCHASES AND SALES OF SECURITIES
During the current fiscal period, purchases and sales of securities by the Funds, excluding short-term securities and in-kind transactions, were as follows:
$ 2,414,037 $ 3,517,745
During the current fiscal period, there were no purchases or sales of U.S. Government securities by the Funds.
During the current fiscal period, in-kind transactions associated with creations and redemptions were as follow:
In-kind
NOTE 5 – INCOME TAX INFORMATION
The components of distributable earnings (accumulated deficit) and tax basis cost of investments and net unrealized appreciation (depreciation) for federal income tax purposes as of August 31, 2022 were as follows:
BioPharma ETF
Tax cost of investments
Gross tax unrealized appreciation
$ 3,487,648 $ 231,173
Gross tax unrealized depreciation
Net tax unrealized appreciation (depreciation)
Undistributed ordinary income
Undistributed long-term capital gains
Other accumulated gain (loss)
Distributable earnings (accumulated deficit)
The difference between the cost basis for financial statement and federal income tax purposes was primarily due to the tax deferral of losses from wash sales and tax treatment of passive foreign investment companies.
A regulated investment company may elect for any taxable year to treat any portion of any qualified late year loss as arising on the first day of the next taxable year. Qualified late year losses are certain capital and ordinary losses which occur during the portion of the Funds' taxable year subsequent to October 31 and December 31, respectively. For the taxable year ended August 31, 2022, Loncar Cancer Immunotherapy ETF elected to defer $89,180 late-year ordinary losses.
At August 31, 2022, the Funds had the following capital loss carryforwards with no expiration:
During the fiscal year ended August 31, 2022, there was no capital loss carryforward utilized.
The tax character of distributions paid by the Funds during the fiscal year ended August 31, 2022 was as follows:
Ordinary Income
$ 764,347 $ 1,552,322
$ 1,061,000 $ —
The tax character of distributions paid by the Funds during the fiscal period ended August 31, 2021 was as follows:
NOTE 6 – SHARE TRANSACTIONS
Shares of the Funds are listed and traded on the Nasdaq Stock Market LLC. Market prices for the shares may be different from their NAV. The Funds issue and redeem shares on a continuous basis at NAV generally only in blocks of 50,000 shares for the Loncar Cancer Immunotherapy ETF and 25,000 shares for Loncar China BioPharma ETF, 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. Except when aggregated in Creation Units, shares are not redeemable securities of the Funds. Creation Units may only be purchased or redeemed by certain financial institutions ("Authorized Participants"). An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a Depository Trust
Company participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors do not qualify as Authorized Participants nor have the resources to buy and sell whole Creation Units. Therefore, they are unable to purchase or redeem shares directly from the Funds. Rather, most retail investors may purchase shares in the secondary market with the assistance of a broker and are subject to customary brokerage commissions or fees.
The Funds currently offer one class of shares, which has no front-end sales load, no deferred sales charge, and no redemption fee. A fixed transaction fee is imposed for the transfer and other transaction costs associated with the purchase or sale of Creation Units. The standard fixed transaction fee for Loncar Cancer Immunotherapy ETF is $300 and the Loncar China BioPharma ETF fee is $750, both payable to the Custodian. The fixed transaction fee may be waived on certain orders if the Funds' Custodian has determined to waive some or all of the costs associated with the order, or another party, such as the Adviser, has agreed to pay such fee. In addition, a variable fee may be charged on all cash transactions or substitutes for Creation Units of up to a maximum of 2% of the value of the Creation Units subject to the transaction. Variable fees received by the Funds, if any, are displayed in the Capital Share Transactions section of the Statements of Changes in Net Assets. The Funds may issue an unlimited number of shares of beneficial interest, with no par value. All shares of the Funds have equal rights and privileges.
NOTE 7 – RISKS
Industry Risk. To the extent that the Funds invest more heavily in particular industry groups of the economy, their performance will be especially sensitive to developments that significantly affect those industry groups or strategies.
Covid-19 Risk. The recent global outbreak of COVID-19 has disrupted economic markets and the prolonged economic impact is uncertain. The operational and financial performance of the issuers of securities in which the Funds invest depends on future developments, including the duration and spread of the outbreak, and such uncertainty may in turn impact the value of the Funds' investments.
Loncar Cancer Immunotherapy ETF:
Immunotherapy Companies Risk. Immunotherapy Companies are highly dependent on the development, procurement and marketing of drugs and the protection and exploitation of intellectual property rights. A company's valuation can also be greatly affected if one of its products is proven or alleged to be unsafe, ineffective, or unprofitable. The stock prices of Immunotherapy Companies have been and will likely continue to be very volatile.
Loncar China BioPharma ETF:
China Biopharma Risk. The biopharmaceutical industry in China is strictly regulated and changes in such regulations, including banning or limiting certain products, may have a material adverse effect on the operations, revenues, and profitability of Biopharma Companies. The laws and regulations applicable to the process of administrative approval of medicine and its production in China require entities producing biopharma products to comply strictly with certain standards and specifications promulgated by the government. In the event that a product is discovered to be not compliant with the government's standards and specifications, the health department may revoke its approval of such product, or otherwise limit the use of such product. Additionally, the process of conducting research and various tests on new products before obtaining a new medicine certificate from the National Medical Products Administration ("NMPA") and subsequent procedures may take several years, and the price of certain biopharma products may be regulated in China. Changes in these laws and regulations, including banning or limiting certain products, could have a material adverse effect on the operations, revenues, and profitability of Biopharma Companies held by the Fund.
Currency Exchange Rate Risk. The Fund's assets include investments denominated in non-U.S. currencies or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non U.S. currencies will affect the value of the Fund's investment and the value of your Shares. Currency exchange rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
To the Shareholders of Loncar ETFs and
Board of Trustees of ETF Series Solutions
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Loncar Cancer Immunotherapy ETF and Loncar China BioPharma ETF (the "Funds"), each a series of ETF Series Solutions, as of August 31, 2022, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the related notes, and the financial highlights for each of the five periods in the period then ended (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2022, the results of their operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five periods in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2022, by correspondence with the custodian and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more of Exchange Traded Concepts, LLC's investment companies since 2012.
COHEN & COMPANY, LTD.
Additional information about each Trustee of the Trust is set forth below. The address of each Trustee of the Trust is c/o U.S. Bank Global Fund Services, 615 E. Michigan Street, Milwaukee, WI 53202.
Name and
Held with
Term of
Office and
Principal Occupation(s)
During Past 5 Years
in Fund
by Trustee
During Past
Independent Trustees
Leonard M. Rush, CPA
Lead Independent Trustee and Audit Committee Chairman
Indefinite term; since 2012
Retired; formerly Chief Financial Officer, Robert W. Baird & Co. Incorporated (wealth management firm) (2000–2011).
Independent Trustee, Managed Portfolio Series (34 portfolios) (since 2011).
David A. Massart
Partner and Managing Director, Beacon Pointe Advisors, LLC (since 2022); Co-Founder, President, and Chief Investment Strategist, Next Generation Wealth Management, Inc. (2005-2021).
Janet D. Olsen
Retired; formerly Managing Director and General Counsel, Artisan Partners Limited Partnership (investment adviser) (2000–2013); Executive Vice President and General Counsel, Artisan Partners Asset Management Inc. (2012–2013); Vice President and General Counsel, Artisan Funds, Inc. (investment company) (2001–2012).
Independent Trustee, PPM Funds (2 portfolios) (since 2018).
Interested Trustee
Michael A. Castino
Trustee and Chairman
Indefinite term; Trustee since 2014; Chairman since 2013
Senior Vice President, U.S. Bancorp Fund Services, LLC (since 2013); Managing Director of Index Services, Zacks Investment Management (2011–2013).
The officers of the Trust conduct and supervise its daily business. The address of each officer of the Trust is c/o U.S. Bank Global Fund Services, 615 E. Michigan Street, Milwaukee, WI 53202. Additional information about the Trust's officers is as follows:
Time Served
Principal Occupation(s) During Past 5 Years
Principal Officers of the Trust
Kristina R. Nelson
Senior Vice President, U.S. Bancorp Fund Services, LLC (since 2020); Vice President, U.S. Bancorp Fund Services, LLC (2014–2020).
Alyssa M. Bernard
Vice President, U.S. Bancorp Fund Services, LLC (since 2021); Assistant Vice President, U.S. Bancorp Fund Services, LLC (2018–2021); Attorney, Waddell & Reed Financial, Inc. (2017–2018).
Cynthia L. Andrae
Chief Compliance Officer and Anti-Money Laundering Officer
Indefinite term; since 2022 (other roles since 2021)
Vice President, U.S. Bancorp Fund Services, LLC (since 2019); Compliance Officer, U.S. Bancorp Fund Services, LLC (2015-2019).
Kristen M. Weitzel
Vice President, U.S. Bancorp Fund Services, LLC (since 2015); Assistant Vice President, U.S. Bancorp Fund Services, LLC (2011–2015).
Isabella K. Zoller
Assistant Vice President, U.S. Bancorp Fund Services, LLC (since 2021); Regulatory Administration Attorney, U.S. Bancorp Fund Services, LLC (since 2019); Regulatory Administration Intern, U.S. Bancorp Fund Services, LLC (2018–2019); Law Student (2016–2019).
Elizabeth A. Winske
Jason E. Shlensky
Assistant Vice President, U.S. Bancorp Fund Services, LLC (since 2019); Officer, U.S. Bancorp Fund Services, LLC (2014–2019).
Jessica L. Vorbeck
Officer, U.S. Bancorp Fund Services, LLC (since 2018; 2014-2017).
The Statement of Additional Information ("SAI") includes additional information about the Trustees and is available without charge, upon request, by calling toll free at (800) 617-0004, by accessing the SEC's website at www.sec.gov, or by accessing the Funds' website at www.loncarfunds.com.
For the Six-Months Ended August 31, 2022 (Unaudited)
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares, and (2) ongoing costs, including management fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period as indicated below in the Expense Example Table.
Actual Expenses
The first line of the table provides information about actual account values based on actual returns and actual expenses. You may use the information in this line, 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 first line under the heading entitled "Expenses Paid During Period'' to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table provides information about hypothetical account values based on a hypothetical return and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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 the 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, such as brokerage commissions paid on purchases and sales of Fund shares. Therefore, the second line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher.
For the Six-Months Ended August 31, 2022 (Unaudited) (Continued)
Expenses Paid
During the Period (1)
Hypothetical (5% annual return before expenses)
The dollar amounts shown as expenses paid during the period are equal to the annualized period expense ratio, 0.79%, multiplied by the average account value during the period, multiplied by 184/365, to reflect the one-half year period.
Pursuant to Rule 22e-4 under the Investment Company Act of 1940, the Trust, on behalf of the series of the Trust covered by this shareholder report (the "Series"), has adopted a liquidity risk management program to govern the Trust's approach to managing liquidity risk. Rule 22e-4 seeks to promote effective liquidity risk management, thereby reducing the risk that a fund will be unable to meet its redemption obligations and mitigating dilution of the interests of fund shareholders. The Trust's liquidity risk management program is tailored to reflect the Series' particular risks, but not to eliminate all adverse impacts of liquidity risk, which would be incompatible with the nature of such Series.
The investment adviser to the Series has adopted and implemented its own written liquidity risk management program (the "Program") tailored specifically to assess and manage the liquidity risk of the Series.
At a recent meeting of the Board of Trustees of the Trust, the Trustees received a report pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the period ended December 31, 2021. The report concluded that the Program is reasonably designed to assess and manage the Series' liquidity risk and has operated adequately and effectively to manage such risk. The report reflected that there were no liquidity events that impacted the Series' ability to timely meet redemptions without dilution to existing shareholders. The report further noted that no material changes have been made to the Program since its implementation.
There can be no assurance that the Program will achieve its objectives in the future. Please refer to the prospectus for more information regarding the Series' exposure to liquidity risk and other principal risks to which an investment in the Series may be subject.
Pursuant to Section 15(c) of the Investment Company Act of 1940 (the "1940 Act"), at a meeting held on April 20-21, 2022 (the "Meeting"), the Board of Trustees (the "Board") of ETF Series Solutions (the "Trust") approved the continuance of the Investment Sub-Advisory Agreement (the "Sub-Advisory Agreement") by and among Exchange Traded Concepts, LLC (the "Adviser"), Vident Investment Advisory, LLC (the "Sub-Adviser"), and the Trust, on behalf of the Loncar Cancer Immunotherapy ETF and Loncar China BioPharma ETF (each, a "Fund" and, together, the "Funds").
Prior to the Meeting, the Board, including the Trustees who are not parties to the Sub-Advisory Agreement or "interested persons" of any party thereto, as defined in the 1940 Act (the "Independent Trustees"), reviewed written materials (the "Materials"), including information from the Sub-Adviser regarding, among other things: (i) the nature, extent, and quality of the services provided by the Sub-Adviser; (ii) the historical performance of each Fund; (iii) the cost of the services provided and the profits realized by the Sub-Adviser from services rendered to each applicable Fund; (iv) the extent to which any economies of scale realized by the Sub-Adviser in connection with its services to each Fund are shared with its respective Fund shareholders; (v) any other financial benefits to the Sub-Adviser and its affiliates resulting from services rendered to the Funds; and (vi) other factors the Board deemed to be relevant.
The Board also considered that the Sub-Adviser, along with other service providers of the Funds, had provided written updates on the firm over the course of the year with respect to its role as investment sub-adviser to the Funds, and the Board considered that information alongside the Materials in its consideration of whether the Sub-Advisory Agreement should be continued. Additionally, representatives from the Sub-Adviser provided an oral overview of the services provided to each Fund by the Sub-Adviser and additional information about the Sub-Adviser's personnel and business operations. The Board then discussed the Materials and oral presentations that it had received and any other information that the Board received at the Meeting and deliberated on the approval of continuation of the Sub-Advisory Agreement in light of this information.
Approval of the Continuation of the Sub-Advisory Agreement with the Sub-Adviser
Nature, Extent, and Quality of Services Provided. The Trustees considered the scope of services provided under the Sub-Advisory Agreement, noting that the Sub-Adviser had provided and would continue to provide investment management services to the Funds. In considering the nature, extent, and quality of the services provided by the Sub-Adviser, the Board considered the quality of the Sub-Adviser's compliance program and past reports from the Trust's Chief Compliance Officer ("CCO") regarding the CCO's review of the Sub-Adviser's compliance program. The Board also considered its previous experience with the Sub-Adviser providing investment management services to the Funds, as well as other series of the Trust. The Board noted that it
had received a copy of the Sub-Adviser's registration form and financial statements, as well as the Sub-Adviser's response to a detailed series of questions that included, among other things, information about the Sub-Adviser's decision-making process, the background and experience of the firm's key personnel, and the firm's compliance policies, marketing practices, and brokerage information.
The Board noted the responsibilities that the Sub-Adviser has as each Fund's investment sub-adviser, including: responsibility for the general management of the day-to-day investment and reinvestment of the assets of each Fund; determining the daily baskets of deposit securities and cash components; executing portfolio security trades for purchases and redemptions of each Fund's shares conducted on a cash-in-lieu basis; oversight of general portfolio compliance with applicable securities laws, regulations, and investment restrictions; responsibility for quarterly reporting to the Board; and implementation of Board directives as they relate to the Funds. The Board also considered the Sub-Adviser's resources and capacity with respect to portfolio management, compliance, and operations given the number of funds for which it provides sub-advisory services.
Historical Performance. The Board noted that information regarding each Fund's performance for various time periods had been included in the Materials. The Board considered each Fund's past investment performance, including for periods ended December 31, 2021. Because each Fund is designed to track the performance of an index, the Board considered, among other things, the extent to which each such Fund tracked its respective index before fees and expenses. The Board noted that, for the time periods reviewed, each Fund performed in-line with its underlying index.
Cost of Services Provided and Economies of Scale. The Board reviewed the sub-advisory fees paid by the Adviser to the Sub-Adviser for its services to the Funds. The Board considered that the fees paid to the Sub-Adviser are paid by the Adviser and noted that the fee for each Fund reflected an arm's-length negotiation between the Adviser and the Sub-Adviser. The Board further determined that the fees reflected an appropriate allocation of the advisory fee paid to each firm given the work performed by each firm and noted that the fees were generally in line with those charged by the Sub-Adviser in connection with other exchange-traded funds managed by the Sub-Adviser. The Board also evaluated the compensation and benefits received by the Sub-Adviser from its relationship with the Funds, taking into account analyses of the Sub-Adviser's profitability with respect to each Fund at various Fund asset levels.
The Board expressed the view that it currently appeared that the Sub-Adviser might realize economies of scale in managing the Funds as assets grow in size. The Board further noted that because each Fund pays the Adviser a unified fee, any benefits from breakpoints in the sub-advisory fee schedule would accrue to the Adviser, rather
than such Fund's respective shareholders. Consequently, the Board determined that it would monitor fees as the Funds grow to determine whether economies of scale were being effectively shared with the Funds and their shareholders.
Conclusion. No single factor was determinative of the Board's decision to approve the continuation of the Sub-Advisory Agreement; rather, the Board based its determination on the total mix of information available to it. Based on a consideration of all the factors in their totality, the Board, including the Independent Trustees, unanimously determined that the Sub-Advisory Agreement, including the compensation payable under the agreement, was fair and reasonable to each Fund. The Board, including the Independent Trustees, unanimously determined that the approval of the continuation of the Sub-Advisory Agreement was in the best interests of each Fund and its respective shareholders.
For the fiscal year ended August 31, 2022, certain dividends paid by the Funds may be subject to a maximum tax rate of 20.0%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The percentage of dividends declared from ordinary income designated as qualified dividend income was as follows:
For corporate shareholders, the percent of ordinary income distributions qualifying for the corporate dividends received deduction for the fiscal year ended August 31, 2022 was as follows:
The Percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Section 871(k)(2)(C) for each Fund were as follows:
The Funds file their complete schedules of portfolio holdings for their first and third fiscal quarters with the SEC on Part F of Form N-PORT. The Funds' Part F of Form N-PORT is available without charge, upon request, by calling toll-free at (800) 617-0004 or by accessing the Funds' website at www.loncarfunds.com. Furthermore, you may obtain the Part F of Form N-PORT on the SEC's website at www.sec.gov. The Funds' portfolio holdings are posted on its website at www.loncarfunds.com daily.
A description of the policies and procedures the Funds use to determine how to vote proxies relating to portfolio securities is provided in the SAI. The SAI is available without charge, upon request, by calling toll-free at (800) 617-0004, by accessing the SEC's website at www.sec.gov, or by accessing the Funds' website at www.loncarfunds.com.
Information regarding how the Funds voted proxies relating to portfolio securities during the period ending June 30 is available by calling toll-free at (800) 617-0004 or by accessing the SEC's website at www.sec.gov.
Information regarding how often shares of each Fund trade on an exchange at a price above (i.e., at premium) or below (i.e., at a discount) the NAV of each Fund is available, without charge, on the Funds' website at www.loncarfunds.com.
(This Page Intentionally Left Blank.)
10900 Hefner Pointe Drive, Suite 207
Sub-Adviser
Vident Investment Advisory, LLC
1125 Sanctuary Parkway, Suite 515
Loncar Investments, LLC
Quasar Distributors, LLC
111 East Kilbourn Avenue, Suite 2200
Milwaukee, Wisconsin 53202
U.S. Bank National Association
1555 North Rivercenter Drive, Suite 302
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Independent Registered Public Accounting Firm
342 North Water Street, Suite 830
Morgan, Lewis, & Bockius, LLP
Symbol – CNCR
CUSIP – 26922A826
Symbol – CHNA


There seems to have been little coverage of this in the press, but with effect from 21st September 2014, DEWA (Dubai Electricity & Water Authority) has increased the security deposits required on taking up residency in a property.
Time certainly does fly. I have been writing the On Your Side column in the Saturday edition of The National newspaper for five years. That's 262 columns to date and something like 800 questions answered and problems solved.


AMD is preparing their next-gen Ryzen processors for 2018, but we're already hearing about the new 400-series chipset that will power next-gen motherboards thanks to a new post on PCI-SIG.
The upcoming Zen+/Ryzen 2000 range is also known as Pinnacle Ridge, and will be an upgrade of Zen 1 made on 12nm. AMD will give us higher clock speeds and improved power efficiency, which is always welcomed. Zen 2 will be saved for the Ryzen 3000 series of processors, which will offer even more improvements over Zen as it will be baked onto the super-delicious 7nm node.
AMD's upcoming Summit Ridge 300 series chipset was listed on PCI-SIG in January 2016, but now we have the new codename Promontory chipset listed on PCI-SIG, which was added on December 19, 2017. This new chipset teased "AMD 400 Series Chipsets" which will include X470, B450, and A420 series motherboards.
Expect more news on this in early 2018.


Angel's Rest Trail Corbett Angels Rest In the Columbia Gorge. Angels Rest Trail is a 4.1 mile moderately trafficked out and back trail located near Corbett, OR that features a waterfall and is rated as difficult. The trail is primarily used for hiking and is accessible year-round. Dogs are also able to use this trail but must be kept on leash.


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WSTale » Sport » Emotional Ronaldo reveals 'inspirational' Maradona insisted on giving him one of two special watches he always wore
Emotional Ronaldo reveals 'inspirational' Maradona insisted on giving him one of two special watches he always wore
mediabest December 2, 2020	emotionalinsrevealsRonaldo
BRAZIL legend Ronaldo paid tribute to 'inspirational' Diego Maradona – and revealed an incredible tale about the Argentine.
Maradona died last week at the age of 60 from a cardiac arrest.
In the latest twist in the saga, Maradona's personal doctor Leopoldo Luque is being probed over alleged negligence amid reports the death is being treated as manslaughter.
Since Wednesday's shock news, tributes have been pouring in across the globe, from Argentina to Italy and everywhere in between.
Now, former Brazil superstar Ronaldo has paid his respects to his fellow South American.
Ronaldo said: "Diego left an incredible legacy in football. His loss is very hard to take.
"The news caught me by surprise and left me very sad.
"I want to send my love to his family.
"He changed the lives of many people and I will always be eternally grateful for the inspiration he provided me."
Ronaldo continued with an anecdote, revealing Maradona gave him one of his prized watches after meeting in Madrid.
Maradona famously always wore two watches – one on each wrist.
The timepieces were always identical in model, with one set to local time wherever in the world he was, the other to the time in his native Argentina.
And Ronaldo was lucky enough to be gifted one of Maradona's famous watches after enjoying some dinner together.
The Brazilian continued: "One of the first times he came to visit me in Madrid we had dinner.
"Diego brought two watches and the legend went that he did not go anywhere without them both.
"I asked him why he wore two, and he said that his daughter had given them to him as a present and since then he had never taken them off.
"At the end of the meal he took one off and gave it to me as a gift.
"I didn't want to accept it, but he got angry and I was left with no choice.
"I will look after it for the rest of my life as a reminder of his generosity and friendship."
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Home/News/Celebrating National Milk Day!
Celebrating National Milk Day!
We're celebrating National Milk Day today – January 11; launched to recognise the very first-time milk was delivered to homes inside sterilized glass bottles. It wasn't until 1878 that bottles were filled with milk and sealed with waxed paper. Before that, conditions for storing milk were highly unsanitary. These days thankfully we have the technology to pasteurize and deliver fresh milk to homes, stores, and processing facilities across the country. By today's standards, milk with its nine essential nutrients is considered a staple food, technically able to support human life without the addition of any other food groups to balance it out.
For National Milk Day, we invite you to join us in celebrating the oldest and most natural food for all — MILK!
As a staple food available at most grocery stores, milk is one of those foods we tend to take for granted. It's always there on the shelf, cold and fresh and ready to take home.
Milk is packed with vitamins, minerals, and other nutrients important for your health. It contains nine essential nutrients that our bodies needs to live and it also delivers some non-essential nutrients such as sugars and fats, providing our bodies with the energy it needs to function. And while cow's milk differs from human milk in fat content and nutrient ratios, its basic components are close enough for humans to benefit.
Milk is great on its own, but this creamy white liquid is also the foundation of the entire dairy food group. Milk today is available in various forms; whole milk which is in it's the purest form, lower fat-content milks like 2%, blended, and skimmed milk. Creams are the higher fat-content milk products that have been removed from skimmed milk. Milks and creams vary in fat content depending on how we will use them — heavy creams are used to make butter and whipped cream, while lighter creams are used to produce dairy variants like yoghurt, cheese, and ice cream.
Here at Relish, we use whole and skimmed milk, plus various creams. As you can imagine, with over nine venues and when not operating in a pandemic, multiple year-round events at which we cater, we rely heavily on daily deliveries from our local supplier Bramley's who work closely with local dairy farms across the Cotswolds.
It really is a vital ingredient to our daily operations and deserves to be celebrated!


In 1998, Manitoba's Conservative government was oozing confidence and appeared certain to cruise to re-election under Premier Gary Filmon. But when a local radio reporter began to investigate rumours about Conservative dirty tricks in the last provincial election, he broke open the scandal that led to a riveting public inquiry, and ultimately to the fall of the government. The Conservatives' vote-splitting scheme was equal parts detective story and comedy of errors, tragedy and farce. Because it had occurred in the hardscrabble Interlake region, carried out by a wildly eccentric cast of characters, some media commentators dismissed the story as a low-rent scandal conducted by political hillbillies. But in fact the caper was masterminded by the premier's principal secretary and supported by two of the province's most distinguished entrepreneurs.


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KZN-Based Sluu Fashion Brand Plans Expansion
KwaZulu-Natal fashion designer and owner of fashion brand, Sluu, Ms Silungile Mokoena, has expressed her intention to break into the Zimbabwean fashion industry.
One of the first steps to achieving this is by participating in the 2017 edition of Zimbabwe International Trade Fair (ZITF), which holds this week in Bulawayo.
Mokoena, who will be forming part of a business delegation that will be led by the Department of Trade and Industry (the dti) to the 2017 ZITF, said the event falls in line with her goals of expanding her brand's footprint beyond South Africa.
"Zimbabwe makes for a favourable market for me to venture into because of its proximity to South Africa which makes it easy for me to move my goods. In addition, the cultural similarities between the two countries make it an attractive market to venture into," Ms Mokoena said.
Ms Mokoena further mentions that her bridal range has been receiving such positive demand in Bulawayo, so much so that she has been invited to showcase her designs at the Bulawayo Fashion Week which will be on Friday, April 28, 2017.
"My long long-terms goals include me obtaining my accreditation from the National Department of Higher Education and establishing a boutique for bridal wear. I have also been receiving numerous requests from people interested in learning about fashion design.
"I would like to establish an academy locally to tap into that demand and establish also a satellite branch in Bulawayo going forward," adds Ms Mokoena.
South Africa's participation at the ZITF follows on the heels of a successful participation in 2016 where a reported total of 431 trade leads were secured by exhibitors, with a total of 21 Zimbabwean agents appointed and export sales totalling R10 million recorded through participation.
The companies that are part of the delegation will be assisted by the dti through its Export Marketing and Investment Assistance Scheme (EMIA) which aims to develop export markets for South African products and services and to recruit new foreign direct investment into the country.
Ms Mokoena holds a National Diploma in fashion design and specialises in the manufacturing of high-end boutique wear, corporate uniforms and bridal wear.
Related Topics:Ms Silungile Mokoenasluusluu fashion brand
5th Nollywood Week Festival Gathers Momentum
Veteran Nigerian Actor Olumide Bakare Dies
Funa Maduka, 15 Other Jurors for 2023 Sundance Film Festival
A Nigerian filmmaker, Ms Funa Maduka, has been announced as one of the 16 jurors granting awards at the 2023 Sundance Film Festival. She is one of the three jury members of the World Cinema Dramatic Competition, alongside Shozo Ichiyama and Annemarie Jacir.
The jurors of the 2023 edition are Jeremy O. Harris, Eliza Hittman, and Marlee Matlin for U.S. Dramatic Competition; W. Kamau Bell, Ramona Diaz, and Carla Gutierrez for U.S. Documentary Competition; Shozo Ichiyama, Annemarie Jacir, and Funa Maduka for World Cinema Dramatic Competition; Karim Amer, Petra Costa, and Alexander Nanau for World Cinema Documentary Competition; Madeleine Olnek for the NEXT competition section; and Destin Daniel Cretton, Marie-Louise Khondji, and Deborah Stratman for the Short Film Program Competition.
According to a statement, the festival kicks off on Thursday, January 19, in Utah, the United States, and will end on Sunday, January 29, 2023.
The jurors will grant awards to filmmakers for feature and short films. The winners are expected to be announced on Friday, January 27.
Ms Maduka is an award-winning filmmaker and the former head of International Original Films at Netflix, where she worked with the world's top global and emerging filmmakers.
Over six years, she was positioned at the frontline of the company's global expansion, managing the launch of the film offering across 100+ countries. She pioneered Netflix's move into international film production, building a development slate across Europe, the Middle East, Asia and Africa.
Meanwhile, her film acquisitions brought Netflix its first film nominations at both the Golden Globes and the Academy Awards.
Previously she worked at Participant Media, developing and managing campaigns for film and television projects.
Ms Maduka is an award-winning filmmaker credited with writing, producing and directing the first Nigerian film to world premiere at the Sundance Film Festival. She is a member of the Academy of Arts and Sciences. She holds a BA from Cornell University and a Masters from Harvard Business School.
GistHouse to Celebrate Don Jazzy as African Icon January 20
Friday, January 20, 2023, has been set aside to celebrate maverick beatmaker, Mr Michael Collins Ajereh, otherwise known as Don Jazzy, as the Black African Icon of the Month.
This followed his emergence as the African Icon for January through the first Afrocentric audiovisual conversation platform, GistHouse.
"We are most excited and privileged to announce Michael Collins, popular as Don Jazzy, a colossus of music in Africa, as the Afrocentric Icon for The Month of January 2023," the founder and Gistmaster at GisthHouse, Mr Ope Banwo, said at a press conference in Omaha, Nebraska, USA.
Mr Banwo explained that the Delta State-born influencer and entrepreneur was chosen through a voting exercise by users and management of the application with consideration for the most outstanding black Africans.
"Don Jazzy was chosen out of dozens of other worthy African icons for his lifetime body of work in elevating the music industry globally in the context of the Afrocentric experience.
"He has not only excelled as a record producer, performer, and music executive, he literally pioneered a whole new genre of music and style of music performance with his iconic MoHits and Marvin Records labels," he said.
"While Don Jazzy didn't start international cross-over music in Africa, he brought a delightful new swagger, panache and an amazing financially rewarding dimension into African music with his unforgettable partnership with the inimitable D'Banj in MoHits Records, among others.
"After MoHits, he took his pioneering talent to a higher level with Marvin Records that gave us instant superstars like the sultry Tiwa Savage, super crooner Wande Coal, Dr Sid, and Korede Bello, among others," Mr Banwo further disclosed at the briefing.
"Beyond establishing himself as a superstar music producer/performer, Don Jazzy has also mentored and helped a whole generation of Africans to turn their talents as musicians into a full-time occupation and impactful vocation," the GistHouse app creator stated.
Shedding more light on events to celebrate Don Jazzy, the filmmaker and serial entrepreneur noted that GistHouse will celebrate Don Jazzy as its January Icon of the Month in several ways during the month of January.
"As part of celebrating Don Jazzy, we shall be declaring Friday, January 20, as the Icon Celebration Day with Don Jazzy on the GistHouse platform with different special rooms dedicated to celebrating him and his body of work, and also hosting him to a special conversation on the GistHouse platform," he concluded.
GistHouse provides a safe and rewarding environment for people of all colours to host different audio and video rooms on any topic and provides advanced features for rewarding conversations on everything, including business, politics, religion, personal development, self-development, dating, business meetings, networking, friends and family meetings etc.
Ticket Price Raises Box Office Revenue by 46% to N6.94bn in 2022
Nigerian cinema operators generated revenue of N6.94 billion in 2022 against the N4.74 billion generated in 2021, a 46.4 per cent growth year-on-year.
This was disclosed by the National President of the Cinema Exhibitors Association of Nigeria (CEAN), Mr Opeyemi Ajayi, during an interview with the News Agency of Nigeria (NAN) in Lagos.
This indicated a continued post-pandemic recovery after the majority of businesses were closed during the year 2020, with Mr Ajayi adding that Nigeria's movie industry continues to lead the recovery in Africa.
"The box office raked in N4.74 billion in 2021, N2.1 billion in 2020, N6.4 billion in 2019, and N5.98 billion in 2018.
"For 2022, the increase in average ticket price led to revenue growth, and admissions remained flat in the previous year.
"Nigeria continues to lead a recovery in Africa, post COVID on the back of strong local industry. Also, Hollywood continues to focus on African content, and engagement is very positive for the box office.
"We observed that Black Panther is on track to become the first N1 billion movie," he said.
Giving an outlook for the year 2023, the CEAN President added that a 10 to 15 per cent increase in ticket price would potentially drive box office revenue in 2023 as he expected positive growth by a minimum of 20 per cent as independent cinemas constituted 25 per cent of the market share at present.
He added that factors had been observed to drive growth in the new year as five cinemas were opened in the fourth quarter of 2022, and a minimum of 3 new locations were expected to open in the first half of 2023.
"This will be a positive addition to the box office. Collaborations between Hollywood and Nollywood on content are expected to continue in the foreseeable future.
"And with the breakout success of big Nollywood movies such as Brotherhood, Battle on Buka Street, and King of Thieves, to mention a few, 2023 is expected to have a larger budget movie and potential release outside the West African territory."
He also noted the top 5 highest grossing Nollywood films in 2022 as Brotherhood, King of Thieves, Battle on Buka Street, Ijakumo and Passport and: Black Panther, Woman King, Dr Strange, Thor: Love and Thunder, and Black Adam for Hollywood.


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Divine Rapture – The Burning Passion
Band(s): Divine Rapture
Label(s): Listenable Records
Release Format(s): CD
Review Date: August 16, 2003
I already said after hearing their promo two years ago: Divine Rapture is a band with potential. I mean, they had their promo produced by Erik Rutan, and the climate was perfect for this hyper death metal. And yes, they got signed by Listenable, and here's their first CD. Basically it's an album with songs that contain all the right elements. Brutality, speed, technique. And yet. I can't help it, but I'm a bit disappointed in this album. Maybe it's just because two years have passed since the promo. Two years in which I've heard a whole bunch of bands like this, Hate Eternal, Angelcorpse, Centurian, you name it. Believe me, there's nothing wrong with this form of death metal. But whenever a band -like Divine Rapture in this case- comes up with a debut album, I want to be amazed, I want to be surprised. And I'm not.
They're doing it just too much by the book. I'm a die hard death metal lover, trust me, but I do want to hear a bit more than just musical skills and brutality. This is a CD that contains every element for a death metal band (except originality) but basically doesn't add anything. I would have rather put a good review here, because I've had my hopes up for these men. So I guess the album doesn't really live up to its title, because I really miss 'the burning passion'. (Stijn)


An accused murderer Anthony Hobson, 48, was charged originally with murder and second degree (illegal) abortion after stabbing his pregnant girlfriend Jennifer Irigoyen to death.
Hobson was charged with double murder as he murdered Irigoyen and her unborn baby, but now he will not be charged with the murder of the unborn baby as New York Governor Andrew Cuomo signed the Reproductive Health Care Act (RHA) which allowed for abortion at any time in the pregnancy as long as it is alleged the fetus is not viable, but the bill doesn't give any definition as to what is or what isn't viable as a fetus.
Across New York and the country, the story has caused outrage as we are beginning to see the normalization of infanticide. For the longest time if someone murdered a pregnant woman they would be facing double homicide charges but now in New York, that has changed.
So far Governor Andrew Cuomo and his office have said nothing about this case.