# EDGAR Filing Document

**Accession Number:** 0001537140
**File Stem:** 0001580642-23-001409
**Filing Date:** 2023-3
**Character Count:** 119577
**Document Hash:** 14f7dc8d5c6cf53c34d3b14345f0a217
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001580642-23-001409.hdr.sgml**: 20230310

**ACCESSION NUMBER**: 0001580642-23-001409

**CONFORMED SUBMISSION TYPE**: N-CSRS

**PUBLIC DOCUMENT COUNT**: 4

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230310

**DATE AS OF CHANGE**: 20230310

**EFFECTIVENESS DATE**: 20230310

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NORTHERN LIGHTS FUND TRUST III
- **CENTRAL INDEX KEY:** 0001537140
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE

**FILING VALUES:**
- **FORM TYPE:** N-CSRS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-22655
- **FILM NUMBER:** 23723274

**BUSINESS ADDRESS:**
- **STREET 1:** 225 PICTORIA DRIVE
- **STREET 2:** SUITE 450
- **CITY:** CINCINNATI
- **STATE:** OH
- **ZIP:** 45246
- **BUSINESS PHONE:** 631-470-2621

**MAIL ADDRESS:**
- **STREET 1:** 17605 WRIGHT STREET
- **CITY:** OMAHA
- **STATE:** NE
- **ZIP:** 68130

## Series and Classes Contracts Data

### Boyd Watterson Limited Duration Enhanced Income Fund (Series ID: S000054112)

| Class ID   | Class Name                                                           | Ticker Symbol   |
|:---|:---|:---|
| C000170092 | Boyd Watterson Limited Duration Enhanced Income Fund Class A Shares  | BWDAX           |
| C000170093 | Boyd Watterson Limited Duration Enhanced Income Fund Class C Shares  | BWDCX           |
| C000170094 | Boyd Watterson Limited Duration Enhanced Income Fund Class I Shares  | BWDIX           |
| C000170095 | Boyd Watterson Limited Duration Enhanced Income Fund Class I2 Shares | BWDTX           |

**united states<br> securities and exchange commission<br> washington, d.c. 20549<br>form n-csr<br>certified shareholder report of registered management<br> investment companies**

Investment Company Act file number <u>811-22655</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Northern Lights Fund Trust III</u> 

(Exact name of registrant as specified in charter)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>225 Pictoria Drive, Suite 450, Cincinnati, OH 45246</u> 

(Address of principal executive offices) (Zip code)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>The Corporation Trust Company</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>1209 Orange Street, Wilmington, DE 19801</u> 

(Name and address of agent for service)

Registrant's telephone number, including area code: <u>631-490-4300</u> 

Date of fiscal year end: <u>6/30</u> 

Date of reporting period: <u>12/31/22</u> 

**Item 1. Reports to Stockholders.** 

(a) ![(BOYDWATTERSON)](bf001_v1.jpg)

**Boyd Watterson Limited Duration Enhanced <br> Income Fund**

Class A Shares – BWDAX

Class C Shares – BWDCX

Class I Shares – BWDIX

Class I2 Shares – BWDTX

**Semi-Annual Report**

December 31, 2022

1-877-345-9597

<u>www.boydwattersonfunds.com</u>

Boyd Watterson Asset Management, LLC

1301 East 9th Street, Suite 2900

Cleveland, Ohio 44114

**Distributed by Northern Lights Distributors, LLC**

**Member FINRA**

Management Discussion of Fund Performance

The Fund's net return from June 30, 2022 to December 31, 2022 was 3.40%. The Fund's benchmark, the Bloomberg 1-3 Year Government/Credit Index,(1) returned -0.60% over the same period.

No matter how it is viewed, 2022 was a difficult year for the financial markets. It may most easily be remembered for the Federal Reserve's aggressive policy actions, taking their Fed Funds rate upper target from 0.25% in January to 4.50% in December. But the year also included many strong fluctuations, with periods of positive sentiment ultimately giving way to more negative sentiment. As a result, negative returns characterized nearly all markets. In fact, the year represented the first double-digit negative return in the history of the broad-based Bloomberg Aggregate Index and the first time this index ever experienced back-to-back years of negative returns.

Inflation fighting was the key theme for the Federal Reserve and resulted in materially higher interest rates across the full maturity spectrum. With short term rates rising faster than longer term ones however, the year ended with an inverted yield curve; with 3-month T-Bills yielding 4.37% and the Ten-Year Treasury Note yielding 3.88%. This inversion is a strong recessionary signal.

We believe corporations will likely continue to reduce earnings expectations in the beginning of 2023, resulting in wider credit spreads in the fixed income markets. If this materializes, we expect there to be opportunities during the first half of the year to add more high yield exposure, and possibly even some investment grade rated corporates.

Positionally, in line with our firmwide macro-economic view, the Fund remained very cautious on risk. Cash that was invested during the second half of the year continued to focus on traditional asset-backed securities and more highly rated CLOs. We also allowed our cash balance to grow slightly higher than normal in the face of the Federal Reserve's stated intent to continue increasing short-term rates. We maintained our floating rate preference, with 40% of the Fund invested in floating rate securities. Overall, the Fund's high yield exposure ended the year at 51%. Looking forward, we believe the Federal Reserve will maintain high short- term rates for an extended time, therefore we continue to believe a floating rate product offers the most attractive current yield opportunities.

The Fund remains a credit focused, income generating Fund. As such, our expectation is for income generation to continue to be the primary driver of returns for the Fund. From a credit perspective, the Fund continues to experience more credit agency upgrades than downgrades and does not have any individual holdings trading at distressed levels. We meticulously apply our credit process to every security before we purchase it, recognizing that we may likely hold the security during future, tumultuous times, and want to feel comfortable with every security as a long-term holder.

<sup>(1)</sup> The Bloomberg 1-3 Year Gov/Credit Index is a broad-based benchmark that measures the non-securitized component of the US Aggregate Index. It includes investment grade, US dollar-denominated, fixed-rate Treasuries, government-related and corporate securities with 1 to 3 years to maturity. (Source: Bloomberg).

5081-NLD-01132023

---

| |
|:---|
| **Boyd Watterson Limited Duration Enhanced Income Fund** |
| **PORTFOLIO REVIEW (Unaudited)** |
| **December 31, 2022** |

---

Average Annual Total Return through December 31, 2022\*, as compared to its benchmarks:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;Six<br>&nbsp;&nbsp;Months | &nbsp;&nbsp;One<br>&nbsp;&nbsp;Year | &nbsp;&nbsp;Three<br>&nbsp;&nbsp;Year | &nbsp;&nbsp;Five<br>&nbsp;&nbsp;Year | &nbsp;&nbsp;Since<br>&nbsp;&nbsp;Inception (e) | &nbsp;&nbsp;Since<br>&nbsp;&nbsp;Inception (f) | &nbsp;&nbsp;Since<br>&nbsp;&nbsp;Inception (g) |
| Boyd Watterson Limited Duration Enhanced Income Fund - Class A | &nbsp;&nbsp;3.20% | &nbsp;&nbsp;-3.56% | &nbsp;&nbsp;0.77% | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A | &nbsp;&nbsp;1.74% |
| Boyd Watterson Limited Duration Enhanced Income Fund - Class A with load | &nbsp;&nbsp;0.90% | &nbsp;&nbsp;-5.73% | &nbsp;&nbsp;0.01% | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A | &nbsp;&nbsp;1.13% |
| Boyd Watterson Limited Duration Enhanced Income Fund - Class C | &nbsp;&nbsp;2.90% | &nbsp;&nbsp;-4.19% | &nbsp;&nbsp;0.04% | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A | &nbsp;&nbsp;1.06% |
| Boyd Watterson Limited Duration Enhanced Income Fund - Class I | &nbsp;&nbsp;3.33% | &nbsp;&nbsp;-3.29% | &nbsp;&nbsp;1.02% | &nbsp;&nbsp;2.00% | &nbsp;&nbsp;2.25% | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A |
| Boyd Watterson Limited Duration Enhanced Income Fund - Class I2 (a) | &nbsp;&nbsp;3.40% | &nbsp;&nbsp;-3.16% | &nbsp;&nbsp;1.22% | &nbsp;&nbsp;2.17% | &nbsp;&nbsp;N/A | &nbsp;&nbsp;2.83% | &nbsp;&nbsp;N/A |
| Bloomberg 1-3 Year Govt/Credit Index (b) | &nbsp;&nbsp;-0.60% | &nbsp;&nbsp;-3.69% | &nbsp;&nbsp;-0.32% | &nbsp;&nbsp;0.92% | &nbsp;&nbsp;0.85% | &nbsp;&nbsp;0.91% | &nbsp;&nbsp;0.64% |
| Bloomberg 1-5 Year Govt/Credit Index (c) | &nbsp;&nbsp;-0.99% | &nbsp;&nbsp;-5.49% | &nbsp;&nbsp;-0.67% | &nbsp;&nbsp;0.85% | &nbsp;&nbsp;0.80% | &nbsp;&nbsp;1.07% | &nbsp;&nbsp;0.57% |
| Bloomberg U.S. Treasury 1-3 Years (d) | &nbsp;&nbsp;-0.83% | &nbsp;&nbsp;-3.81% | &nbsp;&nbsp;-0.46% | &nbsp;&nbsp;0.74% | &nbsp;&nbsp;0.65% | &nbsp;&nbsp;0.68% | &nbsp;&nbsp;0.47% |

---

\* The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemptions of Fund shares. Past performance is no guarantee of future results. Performance figures for periods greater than 1 year are annualized. The Fund's advisor has contractually agreed to waive its fees and/or reimburse expenses of the Fund, until at least October 31, 2023, to ensure that Total Annual Fund Operating Expenses After Fee Waiver and/or Reimbursement (exclusive of any front-end or contingent deferred loads; brokerage fees and commissions, acquired fund fees and expenses; borrowing costs (such as interest and dividend expense on securities sold short); taxes; and extraordinary expenses, such as litigation expenses (which may include indemnification of Fund officers and the Board, contractual indemnification of Fund service providers (other than the advisor))) will not exceed 0.89%, 1.59%, 0.60%, and 0.40% of the daily average net assets attributable to Class A, Class C, Class I and Class I2 shares, respectively. Class A, Class C, Class I, and Class I2's total annual expense ratios, after fee waiver, are 0.87%, 1.61%, 0.62%, and 0.42%, respectively, per the Fund's most recent prospectus. Without waiver the expense ratios are 0.87%, 1.62%, 0.62%, and 0.62% for Class A, Class C, Class I and Class I2, respectively. For performance information current to the most recent month-end, please call toll-free 1-877-345-9597

(a) The
Fund is the successor to the Boyd Watterson Limited Duration Mid-Grade Fund, LLC (the "Predecessor Fund"), which transferred
its assets to the Fund in connection with the Fund's commencement of operations. The Predecessor Fund was managed by the same advisor
who currently manages the Fund, and had substantially similar investment objectives and strategies to those of the Fund. The performance
includes the performance of the Predecessor Fund prior to the commencement of the Fund's operations. The Predecessor Fund's
performance has been adjusted to reflect the annual deduction of fees and expenses applicable to the Class I2 Shares. The Predecessor
Fund was not registered as a mutual fund under the Investment Company Act of 1940, as amended (the "1940 Act"), and therefore
was not subject to certain investment restrictions, limitations and diversification requirements imposed by the 1940 Act and the Internal
Revenue Code of 1986, as amended (the "Code").

(b) The
Bloomberg 1-3 Year Govt/Credit Index is an unmanaged index which is a component of the US Government/Credit Index, which includes Treasury
and agency securities (US Government Bond Index) and publicly issued US corporate and foreign debentures and secured notes (US Credit
Bond Index). The bonds in the index are investment grade with a maturity between one and three years. Formerly known as Bloomberg Barclays
Capital U.S. 1-3 Year Govt/Credit Bond Index. Investors cannot invest directly in an index.

(c) The
Bloomberg 1-5 Year Govt/Credit Index is an unmanaged index which is a component of the US Government/Credit Index, which includes Treasury
and agency securities (US Government Bond Index) and publicly issued US corporate and foreign debentures and secured notes (US Credit
Bond Index). The bonds in the index are investment grade with a maturity between one and five years. Formerly known as Bloomberg Barclays
1-5 Year Govt/Credit Bond Index. Investors cannot invest directly in an index.

(d) The
Bloomberg U.S. Treasury 1-3 Years Index is an unmanaged index measures the performance of the US government bond market and includes
public obligations of the U.S. Treasury with a maturity between 1 and up to (but not including) 3 years. Formerly known as Bloomberg
Barclays U.S. Treasury 1-3 Years Index. Investors cannot invest directly in an index.

(e) Class
I inception date is April 13, 2017.

(f) Class
I2 inception date is July 15, 2013.

(g) Class
A and C inception date is February 28, 2019.

---

| | |
|:---|:---|
| **Portfolio Composition** | **Percentage of Net Assets** |
| CLO | 21.7% |
| Auto Loan | 16.9% |
| Oil & Gas Producers | 5.4% |
| Biotech & Pharma | 2.6% |
| Specialty Finance | 1.9% |
| Consumer Services | 1.9% |
| Metals & Mining | 1.7% |
| Engineering & Construction | 1.7% |
| Semiconductors | 1.7% |
| Chemicals | 1.6% |
| Other Assets in Excess of Other Liabilities | 42.9% |
|  | 100.0% |

---

Please refer to the Schedule of Investments in this semi-annual report for a detailed listing of the Fund's holdings.

---

| |
|:---|
| **BOYD WATTERSON LIMITED DURATION ENHANCED INCOME FUND** |
| **SCHEDULE OF INVESTMENTS (Unaudited)** |
| **December 31, 2022** |

---

---

| | | |
|:---|:---|:---|
| **Shares** |  | **Fair Value** |
|  | **EXCHANGE-TRADED FUNDS — 0.6%** |  |
|  | **FIXED INCOME - 0.6%** |  |
| 25000 | SPDR Bloomberg High Yield Bond ETF | $2250000 |
|  | **TOTAL EXCHANGE-TRADED FUNDS (Cost $2,322,670)** | 2250000 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|<br>**Shares** |  | **Coupon Rate**<br>**(%)** | <br>**Maturity** |<br>**Fair Value** |
|  | **PREFERRED STOCKS — 1.8%** |  |  |  |
|  | **ASSET MANAGEMENT — 0.6%** |  |  |  |
| 120000 | Charles Schwab Corporation (The) - Series J | 1.1130 | 06/01/26 | 2220000 |
|  | **AUTOMOTIVE — 0.1%** |  |  |  |
| 11969 | Ford Motor Company<sup>(a)</sup> |  |  | 279476 |
|  | **BANKING — 1.1%** |  |  |  |
| 117000 | Huntington Bancshares, Inc. - Series H | 1.1250 | 04/15/26 | 1984321 |
| 122135 | US Bancorp, B - Series M | 1.0000 | 04/15/26 | 1983472 |
|  |  |  |  | 3967793 |
|  | **TOTAL PREFERRED STOCKS (Cost $9,365,331)** |  |  | 6467269 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Principal**<br>**Amount ($)** |  | <br>**Spread** | **Coupon Rate**<br>**(%)** | <br>**Maturity** |<br>**Fair Value** |
|  | **ASSET BACKED SECURITIES — 39.7%** |  |  |  |  |
|  | **AUTO LOAN — 16.9%** |  |  |  |  |
| 2030000 | AmeriCredit Automobile Receivables Trust 2020-2 Series 2020-2 D |  | 2.1300 | 03/18/26 | 1901254 |
| 1039000 | Carmax Auto Owner Trust 2019-2 |  | 3.4100 | 10/15/25 | 1026839 |
| 745000 | Carmax Auto Owner Trust 2019-3 Series 2019-3 Class D |  | 2.8500 | 01/15/26 | 723387 |
| 2000000 | CarMax Auto Owner Trust 2020-2 Series 2020-2 D |  | 5.7500 | 05/17/27 | 1963101 |
| 2000000 | Credit Acceptance Auto Loan Trust 2019-3 Series 2019-3A C<sup>(b)</sup> |  | 3.0600 | 03/15/29 | 1988466 |
| 2435000 | Credit Acceptance Auto Loan Trust 2020-1 Series 2020-1A C<sup>(b)</sup> |  | 2.5900 | 06/15/29 | 2405361 |
| 2946082 | Exeter Automobile Receivables Trust 2021-1 Series 2021-1A C |  | 0.7400 | 01/15/26 | 2882268 |
| 1932000 | Exeter Automobile Receivables Trust 2021-3 |  | 0.9600 | 10/15/26 | 1833257 |
| 2645000 | Exeter Automobile Receivables Trust 2021-3 Series 2021-3A D |  | 1.5500 | 06/15/27 | 2402752 |
| 1000000 | First Investors Auto Owner Trust Series 2021-1A E<sup>(b)</sup> |  | 3.3500 | 04/15/27 | 880816 |
| 2275000 | First Investors Auto Owner Trust 2018-2 Series 2018-2A E<sup>(b)</sup> |  | 5.3600 | 01/15/25 | 2274976 |

---

See accompanying notes which are an integral part of these financial statements.

---

| |
|:---|
| **BOYD WATTERSON LIMITED DURATION ENHANCED INCOME FUND** |
| **SCHEDULE OF INVESTMENTS (Unaudited) (Continued)** |
| **December 31, 2022** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Principal**<br>**Amount ($)** |  | <br>**Spread** | **Coupon Rate**<br>**(%)** | <br>**Maturity** |<br>**Fair Value** |
|  | **ASSET BACKED SECURITIES — 39.7% (Continued)** |  |  |  |  |
|  | **AUTO LOAN — 16.9% (Continued)** |  |  |  |  |
| 1555000 | First Investors Auto Owner Trust 2019-1 Series 2019-1A E<sup>(b)</sup> |  | 4.5300 | 06/16/25 | $1548145 |
| 2000000 | First Investors Auto Owner Trust 2019-2 Series 2019-2A E<sup>(b)</sup> |  | 3.8800 | 01/15/26 | 1936143 |
| 1000000 | First Investors Auto Owner Trust 2020-1 Series 2020-1A E<sup>(b)</sup> |  | 4.6300 | 06/16/26 | 977348 |
| 1005000 | First Investors Auto Owner Trust 2021-1<sup>(b)</sup> |  | 1.1700 | 03/15/27 | 952308 |
| 2230000 | First Investors Auto Owner Trust 2021-2 Series 2021-2A D<sup>(b)</sup> |  | 1.6600 | 12/15/27 | 2007575 |
| 1100000 | Flagship Credit Auto Trust 2019-3<sup>(b)</sup> |  | 2.8600 | 12/15/25 | 1058281 |
| 2461537 | Flagship Credit Auto Trust 2019-4 Series 2019-4 C<sup>(b)</sup> |  | 2.7700 | 12/15/25 | 2430766 |
| 4200000 | GM Financial Leasing Trust Series 2021 -1 D |  | 1.0100 | 07/21/25 | 4059244 |
| 789588 | Santander Drive Auto Receivables Trust 2019-2 Series 2019-2 D |  | 3.2200 | 07/15/25 | 784697 |
| 1510000 | Santander Drive Auto Receivables Trust 2020-3 Series 2020-3 D |  | 1.6400 | 11/16/26 | 1448111 |
| 2458833 | Santander Drive Auto Receivables Trust 2021-1 Series 2021-1 C |  | 0.7500 | 02/17/26 | 2416610 |
| 3990000 | Santander Drive Auto Receivables Trust 2021-3 Series 2021-3 D |  | 1.3300 | 09/15/27 | 3700555 |
| 1500000 | Westlake Automobile Receivables Trust 2019-3 Series 2019-3A E<sup>(b)</sup> |  | 3.5900 | 03/17/25 | 1476000 |
| 2000000 | Westlake Automobile Receivables Trust 2019-3 Series 2019-3A F<sup>(b)</sup> |  | 4.7200 | 04/15/26 | 1972764 |
| 1000000 | Westlake Automobile Receivables Trust 2020-2 Series 2020-2A D<sup>(b)</sup> |  | 2.7600 | 01/15/26 | 973592 |
| 3000000 | Westlake Automobile Receivables Trust 2020-3 Series 2020-3A F<sup>(b)</sup> |  | 5.1100 | 05/17/27 | 2891229 |
| 3675000 | Westlake Automobile Receivables Trust 2021-1 Series 2021-1A E<sup>(b)</sup> |  | 2.3300 | 08/17/26 | 3376768 |
| 2000000 | Westlake Automobile Receivables Trust 2021-2 Series 2021-2A E<sup>(b)</sup> |  | 2.3800 | 03/15/27 | 1795454 |
| 3000000 | Westlake Automobile Receivables Trust 2021-2 Series 2021-2A F<sup>(b)</sup> |  | 3.6600 | 12/15/27 | 2652629 |
| 1305000 | Westlake Automobile Receivables Trust 2021-3 Series 2021-3A C<sup>(b)</sup> |  | 1.5800 | 01/15/27 | 1222087 |
| 1830000 | Westlake Automobile Receivables Trust 2021-3 Series 2021-3A E<sup>(b)</sup> |  | 3.4200 | 04/15/27 | 1583026 |
|  |  |  |  |  | 61545809 |
|  | **CLO — 21.7%** |  |  |  |  |
| 1417057 | Allegro CLO II-S Ltd. Series 2014-1RA A1<sup>(b),(c)</sup> | US0003M + 1.080% | 5.3580 | 10/21/28 | 1402066 |
| 700000 | Allegro CLO II-S Ltd. Series 2014-1RA B<sup>(b),(c)</sup> | US0003M + 2.150% | 6.4280 | 10/21/28 | 679475 |
| 5050000 | ALM 2020 Ltd. Series 2020-1A A2<sup>(b),(c)</sup> | US0003M + 1.850% | 5.9290 | 10/15/29 | 4927996 |
| 1250000 | Apidos CLO XXXV Series 2021-35A E<sup>(b),(c)</sup> | US0003M + 5.750% | 9.9930 | 04/20/34 | 1087533 |
| 1583470 | Ares XL CLO Ltd. Series 2016-40A A1RR<sup>(b),(c)</sup> | US0003M + 0.870% | 4.9490 | 01/15/29 | 1566001 |
| 3675000 | Ares XL CLO Ltd. Series 2016-40A BRR<sup>(b),(c)</sup> | US0003M + 1.800% | 5.8790 | 01/15/29 | 3531815 |
| 750000 | Carlyle US CLO 2016-4 Ltd. Series 2016-4A CR<sup>(b),(c)</sup> | US0003M + 2.800% | 7.0430 | 10/20/27 | 692065 |
| 2250000 | CARLYLE US CLO 2019-2 Ltd. Series 2019-2A A2R<sup>(b),(c)</sup> | US0003M + 1.650% | 5.7290 | 07/15/32 | 2179591 |
| 1240246 | CIFC Funding 2014-II-R Ltd. Series 2014-2RA A1<sup>(b),(c)</sup> | US0003M + 1.050% | 5.3750 | 04/24/30 | 1226098 |
| 1450000 | CIFC Funding 2017-IV Ltd. Series 2017-4A A2R<sup>(b),(c)</sup> | US0003M + 1.550% | 5.8750 | 10/24/30 | 1408717 |
| 3000000 | CIFC Funding 2017-IV Ltd. Series 2017-4A CR<sup>(b),(c)</sup> | US0003M + 3.150% | 7.4750 | 10/24/30 | 2812830 |

---

See accompanying notes which are an integral part of these financial statements.

---

| |
|:---|
| **BOYD WATTERSON LIMITED DURATION ENHANCED INCOME FUND** |
| **SCHEDULE OF INVESTMENTS (Unaudited) (Continued)** |
| **December 31, 2022** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Principal**<br>**Amount ($)** |  | <br>**Spread** | **Coupon Rate**<br>**(%)** | <br>**Maturity** |<br>**Fair Value** |
|  | **ASSET BACKED SECURITIES — 39.7% (Continued)** |  |  |  |  |
|  | **CLO — 21.7% (Continued)** |  |  |  |  |
| 1000000 | Dryden 30 Senior Loan Fund Series 2013-30A CR<sup>(b),(c)</sup> | US0003M + 1.700% | 6.3060 | 11/15/28 | $945279 |
| 3500000 | Dryden 30 Senior Loan Fund Series 2013-30A DR<sup>(b),(c)</sup> | US0003M + 2.600% | 7.2060 | 11/15/28 | 3180002 |
| 236427 | Dryden Senior Loan Fund Series 2017-47A A1R<sup>(b),(c)</sup> | US0003M + 0.980% | 5.0590 | 04/15/28 | 234152 |
| 1680604 | Elevation CLO 2014-2 Ltd. Series 2014-2A A1R<sup>(b),(c)</sup> | TSFR3M + 1.492% | 5.3550 | 10/15/29 | 1667130 |
| 1700000 | Elmwood CLO 20 Ltd. Series 2022-7A B1<sup>(b),(c)</sup> | TSFR3M + 2.750% | 7.1580 | 10/17/34 | 1703873 |
| 2750000 | Goldentree Loan Management US CLO 1 Ltd. Series 2017-1A DR2<sup>(b),(c)</sup> | US0003M + 3.150% | 7.3930 | 04/20/34 | 2564601 |
| 2500000 | GoldenTree Loan Opportunities IX Ltd. Series 2014-9A DR2<sup>(b),(c)</sup> | US0003M + 3.000% | 7.4150 | 10/29/29 | 2386405 |
| 2250000 | Highbridge Loan Management 7-2015 Ltd. Series 2015 BR<sup>(b),(c)</sup> | US0003M + 1.180% | 5.7860 | 03/15/27 | 2209572 |
| 4250000 | Jay Park CLO Ltd. Series 2016-1A BR<sup>(b),(c)</sup> | US0003M + 2.000% | 6.2430 | 10/20/27 | 4114731 |
| 3420000 | JFIN CLO 2016 Ltd. Series 2016-1A DR<sup>(b),(c)</sup> | US0003M + 3.400% | 7.7580 | 10/27/28 | 3405999 |
| 4000000 | LCM XX, L.P. Series 20A ER<sup>(b),(c)</sup> | US0003M + 5.450% | 9.6930 | 10/20/27 | 3721652 |
| 500000 | LCM XXI, L.P. Series 21A DR<sup>(b),(c)</sup> | US0003M + 2.800% | 7.0430 | 04/20/28 | 484078 |
| 1034464 | LCM XXII Ltd. Series 22A A1R<sup>(b),(c)</sup> | US0003M + 1.160% | 5.4030 | 10/20/28 | 1026513 |
| 2000000 | Madison Park Funding XXIV Ltd. Series 2016-24A BR<sup>(b),(c)</sup> | TSFR3M + 2.016% | 5.9750 | 10/20/29 | 1976152 |
| 410587 | Magnetite VII Ltd. Series 2012-7A A1R2<sup>(b),(c)</sup> | US0003M + 0.800% | 4.8790 | 01/15/28 | 405859 |
| 216470 | Magnetite XVI Ltd. Series 2015-16A AR<sup>(b),(c)</sup> | US0003M + 0.800% | 4.9940 | 01/18/28 | 215394 |
| 950000 | Magnetite XVIII Ltd. Series 2016-18A BR<sup>(b),(c)</sup> | US0003M + 1.500% | 6.1060 | 11/15/28 | 929699 |
| 2000000 | Neuberger Berman CLO XV Series 2013-15A CR2<sup>(b),(c)</sup> | US0003M + 1.850% | 5.9290 | 10/15/29 | 1920308 |
| 6000000 | Neuberger Berman CLO XVII Ltd. Series 2014-17A CR2<sup>(b),(c)</sup> | US0003M + 2.000% | 6.3250 | 04/22/29 | 5757779 |
| 2000000 | Neuberger Berman Loan Advisers CLO 32 Ltd. Series 2019-32A DR<sup>(b),(c)</sup> | US0003M + 2.700% | 6.9270 | 01/19/32 | 1859798 |
| 2900000 | OCP CLO 2014-7 Ltd. Series 2014-7A CRR<sup>(b),(c)</sup> | US0003M + 3.100% | 7.3430 | 07/20/29 | 2684516 |
| 234082 | Race Point VIII CLO Ltd. Series 2013-8A AR2<sup>(b),(c)</sup> | US0003M + 1.040% | 5.7150 | 02/20/30 | 231036 |
| 2000000 | Regatta IX Funding Ltd. Series 2017-1A E<sup>(b),(c)</sup> | US0003M + 6.000% | 10.0790 | 04/17/30 | 1708288 |
| 2250000 | Regatta XIII Funding Ltd. Series 2018-2A C<sup>(b),(c)</sup> | US0003M + 3.100% | 7.1790 | 07/15/31 | 2105359 |
| 162500 | Riserva Clo Ltd. Series 2016-3A XRR<sup>(b),(c)</sup> | US0003M + 0.800% | 4.9940 | 01/18/34 | 162354 |
| 850000 | Silver Creek CLO Ltd. Series 2014-1A CR<sup>(b),(c)</sup> | US0003M + 2.300% | 6.5430 | 07/20/30 | 826541 |
| 3563997 | Silvermore CLO Ltd. Series 2014-1A C<sup>(b),(c)</sup> | US0003M + 3.450% | 8.0560 | 05/15/26 | 3544840 |
| 2000000 | Venture XVII CLO Ltd. Series 2014-17A DRR<sup>(b),(c)</sup> | US0003M + 2.820% | 6.8990 | 04/15/27 | 1886890 |
| 1390000 | Wellfleet CLO 2016-1 Ltd. Series 2016-1A DR<sup>(b),(c)</sup> | US0003M + 2.900% | 7.1430 | 04/20/28 | 1354666 |
| 500000 | Wind River 2021-2 CLO Ltd. Series 2021-2A D<sup>(b),(c)</sup> | US0003M + 3.150% | 7.3930 | 07/20/34 | 428267 |
| 1500000 | Wind River CLO Ltd. Series 2021-1A C<sup>(b),(c)</sup> | US0003M + 1.950% | 6.1930 | 04/20/34 | 1401895 |
|  |  |  |  |  | 78557815 |
|  | **NON AGENCY CMBS — 0.2%** |  |  |  |  |
| 680477 | COMM 2012-CCRE5 Mortgage Trust Series 2012-CR5 C<sup>(b),(d)</sup> |  | 4.3150 | 12/10/45 | 662615 |

---

See accompanying notes which are an integral part of these financial statements.

---

| |
|:---|
| **BOYD WATTERSON LIMITED DURATION ENHANCED INCOME FUND** |
| **SCHEDULE OF INVESTMENTS (Unaudited) (Continued)** |
| **December 31, 2022** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Principal**<br>**Amount ($)** |  | <br>**Spread** | **Coupon Rate**<br>**(%)** | <br>**Maturity** |<br>**Fair Value** |
|  | **ASSET BACKED SECURITIES — 39.7% (Continued)** |  |  |  |  |
|  | **OTHER ABS — 0.2%** |  |  |  |  |
| 785235 | MVW Owner Trust 2017-1 Series 2017-1A A<sup>(b)</sup> |  | 2.4200 | 12/20/34 | $767593 |
|  | **RESIDENTIAL MORTGAGE — 0.7%** |  |  |  |  |
| 178516 | Towd Point Mortgage Trust 2017-5 Series 2017-5 A1<sup>(b),(c)</sup> | US0001M + 0.600% | 3.7730 | 02/25/57 | 176753 |
| 279263 | Towd Point Mortgage Trust 2017-6 Series 2017-6 A1<sup>(b),(d)</sup> |  | 2.7500 | 10/25/57 | 267549 |
| 1065887 | Towd Point Mortgage Trust 2018-2 Series 2018-2 A1<sup>(b),(d)</sup> |  | 3.2500 | 03/25/58 | 1021624 |
| 1079205 | Towd Point Mortgage Trust 2018-3 Series 2018-3 A1<sup>(b),(d)</sup> |  | 3.7500 | 05/25/58 | 1023135 |
|  |  |  |  |  | 2489061 |
|  | **TOTAL ASSET BACKED SECURITIES (Cost $149,294,698)** |  |  |  | 144022893 |
| **Principal** |  |  | **Coupon Rate** |  |  |
| **Amount ($)** |  | **Spread** | **(%)** | **Maturity** | **Fair Value** |
|  | **CORPORATE BONDS — 35.5%** |  |  |  |  |
|  | **ASSET MANAGEMENT — 0.7%** |  |  |  |  |
| 1815000 | Oaktree Specialty Lending Corporation |  | 3.5000 | 02/25/25 | 1724560 |
| 850000 | Oaktree Specialty Lending Corporation |  | 2.7000 | 01/15/27 | 723933 |
|  |  |  |  |  | 2448493 |
|  | **AUTOMOTIVE — 0.3%** |  |  |  |  |
| 975000 | Adient Global Holdings Ltd.<sup>(b)</sup> |  | 4.8750 | 08/15/26 | 909129 |
| 250000 | Dana, Inc. |  | 5.3750 | 11/15/27 | 232334 |
|  |  |  |  |  | 1141463 |
|  | **BANKING — 1.1%** |  |  |  |  |
| 2400000 | JPMorgan Chase & Company<sup>(d)</sup> | US0003M + 3.300% | 6.0000 | 02/01/68 | 2353440 |
| 1533000 | Synovus Financial Corporation<sup>(d)</sup> | USSW5 + 3.379% | 5.9000 | 02/07/29 | 1502157 |
|  |  |  |  |  | 3855597 |
|  | **CABLE & SATELLITE — 0.2%** |  |  |  |  |
| 1000000 | CCO Holdings, LLC/CCO Holdings Capital Corporation<sup>(b)</sup> |  | 5.0000 | 02/01/28 | 905955 |
|  | **CHEMICALS — 1.6%** |  |  |  |  |
| 3000000 | Avient Corporation<sup>(b)</sup> |  | 5.7500 | 05/15/25 | 2930162 |
| 492000 | HB Fuller Company |  | 4.0000 | 02/15/27 | 455280 |
| 770000 | HB Fuller Company |  | 4.2500 | 10/15/28 | 684080 |

---

See accompanying notes which are an integral part of these financial statements.

---

| |
|:---|
| **BOYD WATTERSON LIMITED DURATION ENHANCED INCOME FUND** |
| **SCHEDULE OF INVESTMENTS (Unaudited) (Continued)** |
| **December 31, 2022** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Principal**<br>**Amount ($)** |  | <br>**Spread** | **Coupon Rate**<br>**(%)** | <br>**Maturity** |<br>**Fair Value** |
|  | **CORPORATE BONDS — 35.5% (Continued)** |  |  |  |  |
|  | **CHEMICALS — 1.6% (Continued)** |  |  |  |  |
| 2000000 | Ingevity Corporation<sup>(b)</sup> |  | 3.8750 | 11/01/28 | $1718887 |
|  |  |  |  |  | 5788409 |
|  | **COMMERCIAL SUPPORT SERVICES — 1.3%** |  |  |  |  |
| 2000000 | AMN Healthcare, Inc.<sup>(b)</sup> |  | 4.6250 | 10/01/27 | 1847580 |
| 2945000 | Korn Ferry<sup>(b)</sup> |  | 4.6250 | 12/15/27 | 2717440 |
|  |  |  |  |  | 4565020 |
|  | **CONSTRUCTION MATERIALS — 0.9%** |  |  |  |  |
| 3592000 | Advanced Drainage Systems, Inc.<sup>(b)</sup> |  | 5.0000 | 09/30/27 | 3355197 |
|  | **CONSUMER SERVICES — 1.9%** |  |  |  |  |
| 3775000 | Rent-A-Center, Inc.<sup>(b)</sup> |  | 6.3750 | 02/15/29 | 3058687 |
| 3885000 | Service Corp International |  | 5.1250 | 06/01/29 | 3649275 |
|  |  |  |  |  | 6707962 |
|  | **CONTAINERS & PACKAGING — 1.4%** |  |  |  |  |
| 2420000 | Silgan Holdings, Inc. |  | 4.1250 | 02/01/28 | 2243044 |
| 3350000 | TriMas Corporation<sup>(b)</sup> |  | 4.1250 | 04/15/29 | 2929943 |
|  |  |  |  |  | 5172987 |
|  | **ENGINEERING & CONSTRUCTION — 1.7%** |  |  |  |  |
| 2035000 | Installed Building Products, Inc.<sup>(b)</sup> |  | 5.7500 | 02/01/28 | 1832977 |
| 4975000 | MasTec, Inc.<sup>(b)</sup> |  | 4.5000 | 08/15/28 | 4473059 |
|  |  |  |  |  | 6306036 |
|  | **FOOD — 1.4%** |  |  |  |  |
| 4009000 | Darling Ingredients, Inc.<sup>(b)</sup> |  | 5.2500 | 04/15/27 | 3864916 |
| 1264000 | Post Holdings, Inc.<sup>(b)</sup> |  | 5.7500 | 03/01/27 | 1224235 |
|  |  |  |  |  | 5089151 |
|  | **FORESTRY, PAPER & WOOD PRODUCTS — 1.6%** |  |  |  |  |
| 2360000 | Louisiana-Pacific Corporation<sup>(b)</sup> |  | 3.6250 | 03/15/29 | 2048578 |
| 3750000 | Resolute Forest Products, Inc.<sup>(b)</sup> |  | 4.8750 | 03/01/26 | 3704242 |
|  |  |  |  |  | 5752820 |
|  | **HEALTH CARE FACILITIES & SERVICES — 0.6%** |  |  |  |  |
| 2500000 | Molina Healthcare, Inc.<sup>(b)</sup> |  | 4.3750 | 06/15/28 | 2285900 |

---

See accompanying notes which are an integral part of these financial statements.

---

| |
|:---|
| **BOYD WATTERSON LIMITED DURATION ENHANCED INCOME FUND** |
| **SCHEDULE OF INVESTMENTS (Unaudited) (Continued)** |
| **December 31, 2022** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Principal**<br>**Amount ($)** |  | <br>**Spread** | **Coupon Rate**<br>**(%)** | <br>**Maturity** |<br>**Fair Value** |
|  | **CORPORATE BONDS — 35.5% (Continued)** |  |  |  |  |
|  | **HOME CONSTRUCTION — 1.3%** |  |  |  |  |
| 2000000 | LGI Homes, Inc.<sup>(b)</sup> |  | 4.0000 | 07/15/29 | $1547850 |
| 1210000 | Meritage Homes Corporation |  | 6.0000 | 06/01/25 | 1206259 |
| 2120000 | Patrick Industries, Inc.<sup>(b)</sup> |  | 7.5000 | 10/15/27 | 2066021 |
|  |  |  |  |  | 4820130 |
|  | **HOUSEHOLD PRODUCTS — 1.1%** |  |  |  |  |
| 3907000 | Central Garden & Pet Company |  | 5.1250 | 02/01/28 | 3640778 |
| 342000 | Prestige Brands, Inc.<sup>(b)</sup> |  | 5.1250 | 01/15/28 | 321576 |
|  |  |  |  |  | 3962354 |
|  | **INSTITUTIONAL FINANCIAL SERVICES — 0.9%** |  |  |  |  |
| 3485000 | Goldman Sachs Group, Inc. (The) Series P<sup>(d)</sup> | US0003M + 2.874% | 5.0000 | 05/10/66 | 3397770 |
|  | **INTERNET MEDIA & SERVICES — 0.8%** |  |  |  |  |
| 2500000 | Netflix, Inc. |  | 5.7500 | 03/01/24 | 2521600 |
| 100000 | Netflix, Inc. |  | 5.8750 | 02/15/25 | 101423 |
|  |  |  |  |  | 2623023 |
|  | **LEISURE FACILITIES & SERVICES — 0.9%** |  |  |  |  |
| 3560000 | Boyne USA, Inc.<sup>(b)</sup> |  | 4.7500 | 05/15/29 | 3155297 |
|  | **MACHINERY — 1.0%** |  |  |  |  |
| 4000000 | ATS Automation Tooling Systems, Inc.<sup>(b)</sup> |  | 4.1250 | 12/15/28 | 3455760 |
|  | **METALS & MINING — 1.7%** |  |  |  |  |
| 3603000 | Freeport-McMoRan, Inc. |  | 5.0000 | 09/01/27 | 3530811 |
| 2767000 | Mineral Resources Ltd.<sup>(b)</sup> |  | 8.1250 | 05/01/27 | 2790945 |
|  |  |  |  |  | 6321756 |
|  | **OIL & GAS PRODUCERS — 5.4%** |  |  |  |  |
| 2775000 | Cheniere Energy Partners, L.P. |  | 4.5000 | 10/01/29 | 2503157 |
| 3250000 | Hess Midstream Operations, L.P.<sup>(b)</sup> |  | 5.6250 | 02/15/26 | 3171074 |
| 2000000 | MPLX, L.P.<sup>(d)</sup> | US0003M + 4.652% | 6.8750 | 08/15/68 | 1980000 |
| 638000 | Murphy Oil Corporation |  | 5.7500 | 08/15/25 | 628015 |
| 3240000 | Murphy Oil USA, Inc. |  | 5.6250 | 05/01/27 | 3151645 |
| 750000 | Murphy Oil USA, Inc. |  | 4.7500 | 09/15/29 | 687604 |
| 2000000 | Oasis Petroleum, Inc.<sup>(b)</sup> |  | 6.3750 | 06/01/26 | 1950640 |
| 2825000 | Sunoco, L.P./Sunoco Finance Corporation |  | 6.0000 | 04/15/27 | 2786633 |

---

See accompanying notes which are an integral part of these financial statements.

---

| |
|:---|
| **BOYD WATTERSON LIMITED DURATION ENHANCED INCOME FUND** |
| **SCHEDULE OF INVESTMENTS (Unaudited) (Continued)** |
| **December 31, 2022** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Principal**<br>**Amount ($)** |  | <br>**Spread** | **Coupon Rate**<br>**(%)** | <br>**Maturity** |<br>**Fair Value** |
|  | **CORPORATE BONDS — 35.5% (Continued)** |  |  |  |  |
|  | **OIL & GAS PRODUCERS — 5.4% (Continued)** |  |  |  |  |
| 2909000 | Targa Resources Partners, L.P./Targa Resources |  | 5.0000 | 01/15/28 | $2779807 |
|  |  |  |  |  | 19638575 |
|  | **PUBLISHING & BROADCASTING — 0.4%** |  |  |  |  |
| 1500000 | Nexstar Broadcasting, Inc.<sup>(b)</sup> |  | 5.6250 | 07/15/27 | 1379081 |
|  | **REAL ESTATE INVESTMENT TRUSTS — 1.3%** |  |  |  |  |
| 3000000 | HAT Holdings I, LLC/HAT Holdings II, LLC<sup>(b)</sup> |  | 6.0000 | 04/15/25 | 2910000 |
| 2000000 | Iron Mountain, Inc.<sup>(b)</sup> |  | 5.2500 | 03/15/28 | 1843440 |
|  |  |  |  |  | 4753440 |
|  | **RETAIL - CONSUMER STAPLES — 1.0%** |  |  |  |  |
| 3910000 | SEG Holding, LLC/S.E.G Finance Corporation<sup>(b)</sup> |  | 5.6250 | 10/15/28 | 3687208 |
|  | **RETAIL - DISCRETIONARY — 0.9%** |  |  |  |  |
| 1400000 | Asbury Automotive Group, Inc. |  | 4.5000 | 03/01/28 | 1234331 |
| 2250000 | Penske Automotive Group, Inc. |  | 3.5000 | 09/01/25 | 2091678 |
|  |  |  |  |  | 3326009 |
|  | **SEMICONDUCTORS — 1.7%** |  |  |  |  |
| 2180000 | Amkor Technology, Inc.<sup>(b)</sup> |  | 6.6250 | 09/15/27 | 2160922 |
| 2075000 | ON Semiconductor Corporation<sup>(b)</sup> |  | 3.8750 | 09/01/28 | 1813946 |
| 2200000 | Synaptics, Inc.<sup>(b)</sup> |  | 4.0000 | 06/15/29 | 1856786 |
|  |  |  |  |  | 5831654 |
|  | **SOFTWARE — 0.1%** |  |  |  |  |
| 500000 | NortonLifeLock, Inc.<sup>(b)</sup> |  | 6.7500 | 09/30/27 | 490650 |
|  | **SPECIALTY FINANCE — 0.7%** |  |  |  |  |
| 3000000 | FirstCash, Inc.<sup>(b)</sup> |  | 4.6250 | 09/01/28 | 2638682 |
|  | **TECHNOLOGY SERVICES — 0.6%** |  |  |  |  |
| 2500000 | Booz Allen Hamilton, Inc.<sup>(b)</sup> |  | 3.8750 | 09/01/28 | 2219332 |
|  | **TRANSPORTATION EQUIPMENT — 1.0%** |  |  |  |  |
| 2000000 | Allison Transmission, Inc.<sup>(b)</sup> |  | 4.7500 | 10/01/27 | 1858046 |
| 2000000 | Allison Transmission, Inc.<sup>(b)</sup> |  | 5.8750 | 06/01/29 | 1881750 |

---

See accompanying notes which are an integral part of these financial statements.

---

| |
|:---|
| **BOYD WATTERSON LIMITED DURATION ENHANCED INCOME FUND** |
| **SCHEDULE OF INVESTMENTS (Unaudited) (Continued)** |
| **December 31, 2022** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Principal**<br>**Amount ($)** |  | <br>**Spread** | **Coupon Rate**<br>**(%)** | <br>**Maturity** |<br>**Fair Value** |
|  | **CORPORATE BONDS — 35.5% (Continued)** | **CORPORATE BONDS — 35.5% (Continued)** |  |  |  |
|  | **TRANSPORTATION EQUIPMENT — 1.0% (Continued)** | **TRANSPORTATION EQUIPMENT — 1.0% (Continued)** |  |  |  |
|  |  |  |  |  | $3739796 |
|  | **TOTAL CORPORATE BONDS (Cost $141,015,838)** | **TOTAL CORPORATE BONDS (Cost $141,015,838)** |  |  | 128815507 |
| **Principal** |  |  | **Coupon Rate** |  |  |
| **Amount ($)** |  | **Spread** | **(%)** | **Maturity** | **Fair Value** |
|  | **TERM LOANS — 19.0%** |  |  |  |  |
|  | **AUTOMOTIVE — 0.3%** |  |  |  |  |
| 1231250 | Adient US, LLC<sup>(c)</sup> | US0001M + 3.250% | 7.3200 | 04/08/28 | 1219245 |
|  | **BIOTECH & PHARMA — 2.6%** |  |  |  |  |
| 3000000 | Horizon Therapeutics USA, Inc.<sup>(c)</sup> | US0001M + 2.000% | 6.0600 | 05/22/26 | 3001875 |
| 989924 | Horizon Therapeutics USA, Inc.<sup>(c)</sup> | US0001M + 1.750% | 5.8100 | 03/15/28 | 990132 |
| 2896283 | Organon & Company<sup>(c)</sup> | US0001M + 3.000% | 7.7500 | 06/02/28 | 2873664 |
| 3038095 | Prestige Brands, Inc.<sup>(c)</sup> | US0001M + 2.000% | 6.0700 | 07/01/28 | 3038095 |
|  |  |  |  |  | 9903766 |
|  | **CABLE & SATELLITE — 0.8%** |  |  |  |  |
| 2909774 | Charter Communications Operating, LLC<sup>(c)</sup> | US0001M + 1.850% | 6.1600 | 02/01/27 | 2848305 |
|  | **CHEMICALS — 0.8%** |  |  |  |  |
| 2946934 | HB Fuller Company<sup>(c)</sup> | US0003M + 2.000% | 5.9100 | 10/20/24 | 2949232 |
|  | **COMMERCIAL SUPPORT SERVICES — 0.8%** |  |  |  |  |
| 2947500 | AlixPartners LLP<sup>(c)</sup> | US0001M + 2.750% | 6.8200 | 02/04/28 | 2927236 |
|  | **CONSTRUCTION MATERIALS — 1.0%** |  |  |  |  |
| 2946835 | Quikrete Holdings, Inc.<sup>(c)</sup> | US0001M + 2.625% | 6.7000 | 01/31/27 | 2916454 |
| 1000000 | Summit Materials, LLC<sup>(c)</sup> | TSFR1M - –% | 7.6100 | 12/14/27 | 1000625 |
|  |  |  |  |  | 3917079 |
|  | **CONTAINERS & PACKAGING — 0.7%** |  |  |  |  |
| 2395420 | Plastipak Packaging, Inc.<sup>(c)</sup> | US0001M + 2.500% | 6.6300 | 12/01/28 | 2373718 |
|  | **ELECTRIC UTILITIES — 0.8%** |  |  |  |  |
| 2909363 | Vistra Operations Company, LLC<sup>(c)</sup> | US0001M + 1.750% | 5.6500 | 12/31/25 | 2887542 |

---

See accompanying notes which are an integral part of these financial statements.

---

| |
|:---|
| **BOYD WATTERSON LIMITED DURATION ENHANCED INCOME FUND** |
| **SCHEDULE OF INVESTMENTS (Unaudited) (Continued)** |
| **December 31, 2022** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Principal**<br>**Amount ($)** |  | <br>**Spread** | **Coupon Rate**<br>**(%)** | <br>**Maturity** |<br>**Fair Value** |
|  | **TERM LOANS — 19.0% (Continued)** |  |  |  |  |
|  | **ENGINEERING & CONSTRUCTION — 1.0%** |  |  |  |  |
| 3589225 | Centuri Group, Inc. |  | 7.2300 | 08/27/28 | $3537630 |
|  | **FOOD — 0.8%** |  |  |  |  |
| 2940007 | Utz Quality Foods, LLC<sup>(c)</sup> | US0001M + 3.000% | 7.2000 | 01/20/28 | 2919339 |
|  | **LEISURE FACILITIES & SERVICES — 0.8%** |  |  |  |  |
| 2969925 | Hilton Grand Vacations Borrower, LLC<sup>(c)</sup> | US0001M + 3.000% | 7.0700 | 08/02/28 | 2953679 |
|  | **LEISURE PRODUCTS — 1.1%** |  |  |  |  |
| 2955000 | Hayward Industries, Inc.<sup>(c)</sup> | US0001M + 2.500% | 6.5700 | 05/28/28 | 2825719 |
| 997500 | Hayward Industries, Inc.<sup>(c)</sup> | TSFR1M – 3.250% | 7.6500 | 05/28/28 | 963834 |
|  |  |  |  |  | 3789553 |
|  | **MACHINERY — 0.7%** |  |  |  |  |
| 2695030 | Columbus McKinnon Corporation<sup>(c)</sup> | US0001M + 2.750% | 6.4400 | 05/13/28 | 2664711 |
|  | **MEDICAL EQUIPMENT & DEVICES — 0.6%** |  |  |  |  |
| 2157812 | Avantor Funding, Inc.<sup>(c)</sup> | US0001M + 2.250% | 6.3200 | 11/06/27 | 2150400 |
|  | **OIL & GAS PRODUCERS — 1.1%** |  |  |  |  |
| 3950000 | Pilot Travel Centers, LLC<sup>(c)</sup> | US0001M + 2.000% | 6.1900 | 08/06/28 | 3910500 |
|  | **PUBLISHING & BROADCASTING — 1.3%** |  |  |  |  |
| 2970000 | Gray Television, Inc.<sup>(c)</sup> | US0001M + 3.000% | 7.1200 | 12/01/28 | 2886484 |
| 1549070 | Nexstar Broadcasting, Inc.<sup>(c)</sup> | US0001M + 2.500% | 6.5700 | 09/19/26 | 1540596 |
|  |  |  |  |  | 3040580 |
|  | **REAL ESTATE INVESTMENT TRUSTS — 0.3%** |  |  |  |  |
| 971939 | Iron Mountain, Inc.<sup>(c)</sup> | US0003M + 1.750% | 5.8200 | 01/02/26 | 962219 |
|  | **SOFTWARE — 1.1%** |  |  |  |  |
| 3895444 | Open Text Corporation<sup>(c)</sup> | US0003M + 1.750% | 5.8200 | 05/30/25 | 3812178 |
|  | **SPECIALTY FINANCE — 1.9%** |  |  |  |  |
| 3944987 | FleetCor Technologies Operating Company, LLC<sup>(c)</sup> | US0001M + 1.750% | 5.8200 | 04/22/28 | 3908003 |
| 2969925 | Starwood Property Mortgage, LLC<sup>(c)</sup> | US0001M + 3.250% | 7.3200 | 07/26/26 | 2932471 |

---

See accompanying notes which are an integral part of these financial statements.

---

| |
|:---|
| **BOYD WATTERSON LIMITED DURATION ENHANCED INCOME FUND** |
| **SCHEDULE OF INVESTMENTS (Unaudited) (Continued)** |
| **December 31, 2022** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Principal**<br>**Amount ($)** |  | <br>**Spread** | **Coupon Rate**<br>**(%)** | <br>**Maturity** |<br>**Fair Value** |
|  | **TERM LOANS — 19.0% (Continued)** |  |  |  |  |
|  | **SPECIALTY FINANCE — 1.9% (Continued)** |  |  |  |  |
|  |  |  |  |  | $6840474 |
|  | **TECHNOLOGY HARDWARE — 0.5%** |  |  |  |  |
| 1965000 | Pitney Bowes, Inc.<sup>(c)</sup> | US0001M + 4.000% | 8.0800 | 03/12/28 | 1812713 |
|  | **TOTAL TERM LOANS (Cost $69,606,222)** |  |  |  | 68806599 |

---

---

| | | |
|:---|:---|:---|
| **Shares** |  | **Fair Value** |
|  | **SHORT-TERM INVESTMENTS — 2.4%** |  |
|  | **MONEY MARKET FUNDS - 2.4%** |  |
| 8618127 | First American Government Obligations Fund Class X, 4.08% (Cost $8,618,127)<sup>(e)</sup> | 8618127 |
|  | **TOTAL INVESTMENTS - 99.0% (Cost $380,222,886)** | $358980395 |
|  | **OTHER ASSETS IN EXCESS OF LIABILITIES- 1.0%** | 4099243 |
|  | **NET ASSETS - 100.0%** | $363079638 |

---

 

---

| | |
|:---|:---|
| CLO | - Collateralized Loan Obligation |
| ETF | - Exchange-Traded Fund |
| LLC | - Limited Liability Company |
| LP | - Limited Partnership |
| LTD | - Limited Company |
| REIT | - Real Estate Investment Trust |
| SPDR | - Standard & Poor's Depositary Receipt |
| TSFR1M | TSFR1M |
| TSFR3M | TSFR3M |
| US0001M | ICE LIBOR USD 1 Month |
| US0003M | ICE LIBOR USD 3 Month |
| USSW5 | USD SWAP SEMI 30/360 5YR |

---

<sup>(a)</sup> Non-income producing security.

<sup>(b)</sup> Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. The security may be resold in transactions - exempt from registration, normally to qualified institutional buyers. As of December 31, 2022 the total market value of 144A securities is $201,886,712 or 55.6% of net assets.

<sup>(c)</sup> Variable or floating rate security, the interest rate of which adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets.

<sup>(d)</sup> Variable rate security; the rate shown represents the rate on December 31, 2022.

<sup>(e)</sup> Rate disclosed is the seven day effective yield as of December 31, 2022.

See accompanying notes which are an integral part of these financial statements.

---

| |
|:---|
| **Boyd Watterson Limited Duration Enhanced Income Fund** |
| **STATEMENT OF ASSETS AND LIABILITIES (Unaudited)** |
| **December 31, 2022** |

---

---

| | |
|:---|:---|
| **ASSETS** | |
| &nbsp;&nbsp;&nbsp;Investment securities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At cost | $380222886 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At fair value | $358980395 |
| &nbsp;&nbsp;&nbsp;Cash at broker for bank loans | 1022621 |
| &nbsp;&nbsp;&nbsp;Cash | 179628 |
| &nbsp;&nbsp;&nbsp;Dividends and interest receivable | 3057388 |
| &nbsp;&nbsp;&nbsp;Receivable for fund shares sold | 3434 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 12661 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL ASSETS** | 363256127 |
| **LIABILITIES** |  |
| &nbsp;&nbsp;&nbsp;Payable for fund shares redeemed | 800 |
| &nbsp;&nbsp;&nbsp;Investment advisory fees payable | 75827 |
| &nbsp;&nbsp;&nbsp;Distributions (12b-) fees payable | 3657 |
| &nbsp;&nbsp;&nbsp;Payable to related parties | 52589 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 43616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES** | 176489 |
| **NET ASSETS** | $**363079638** |
| **Net Assets Consist Of:** |  |
| &nbsp;&nbsp;&nbsp;Paid in capital ($0 par value, unlimited shares authorized) | $387789136 |
| &nbsp;&nbsp;&nbsp;Accumulated losses | (24709498) |
| **NET ASSETS** | $**363079638** |
| **Net Asset Value Per Share:** |  |
| Class A Shares: |  |
| &nbsp;&nbsp;&nbsp;Net Assets | $**2253776** |
| &nbsp;&nbsp;&nbsp;Shares of beneficial interest outstanding \* | **242300** |
| &nbsp;&nbsp;&nbsp;Net asset value (Net Assets ÷ Shares Outstanding), offering price and redemption price per share | $**9.30** |
| &nbsp;&nbsp;&nbsp;Maximum offering price per share (net asset value plus maximum sales charge of 2.25%) | $**9.51** |
| Class C Shares: |  |
| &nbsp;&nbsp;&nbsp;Net Assets | $**1610679** |
| &nbsp;&nbsp;&nbsp;Shares of beneficial interest outstanding \* | **172884** |
| &nbsp;&nbsp;&nbsp;Net asset value (Net Assets ÷ Shares Outstanding), offering price and redemption price per share | $**9.32** |
| Class I Shares: |  |
| &nbsp;&nbsp;&nbsp;Net Assets | $**67143200** |
| &nbsp;&nbsp;&nbsp;Shares of beneficial interest outstanding \* | **7228703** |
| &nbsp;&nbsp;&nbsp;Net asset value (Net Assets ÷ Shares Outstanding), offering price and redemption price per share | $**9.29** |
| Class I2 Shares: |  |
| &nbsp;&nbsp;&nbsp;Net Assets | $**292071983** |
| &nbsp;&nbsp;&nbsp;Shares of beneficial interest outstanding \* | **31061958** |
| &nbsp;&nbsp;&nbsp;Net asset value (Net Assets ÷ Shares Outstanding), offering price and redemption price per share | $**9.40** |

---

\* Unlimited number of shares of beneficial interest authorized, no par value.

See accompanying notes to financial statements.

---

| |
|:---|
| **Boyd Watterson Limited Duration Enhanced Income Fund** |
| **STATEMENT OF OPERATIONS (Unaudited)** |
| **For the Six Months Ended December 31, 2022** |

---

---

| | |
|:---|:---|
| **INVESTMENT INCOME** |  |
| &nbsp;&nbsp;&nbsp;Dividends | $212766 |
| &nbsp;&nbsp;&nbsp;Interest, net of amortization and accretion | 8288106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL INVESTMENT INCOME** | 8500872 |
| **EXPENSES** |  |
| &nbsp;&nbsp;&nbsp;Investment advisory fees | 730383 |
| &nbsp;&nbsp;&nbsp;Distribution (12b-1) fees |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A | 2816 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class C | 8337 |
| &nbsp;&nbsp;&nbsp;Administrative services fees | 160369 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 52557 |
| &nbsp;&nbsp;&nbsp;Third party administration servicing fees | 38036 |
| &nbsp;&nbsp;&nbsp;Custodian fees | 24040 |
| &nbsp;&nbsp;&nbsp;Compliance officer fees | 15432 |
| &nbsp;&nbsp;&nbsp;Registration fees | 13400 |
| &nbsp;&nbsp;&nbsp;Audit fees | 11848 |
| &nbsp;&nbsp;&nbsp;Legal Fees | 10847 |
| &nbsp;&nbsp;&nbsp;Trustees' fees and expenses | 7879 |
| &nbsp;&nbsp;&nbsp;Printing and postage expenses | 4863 |
| &nbsp;&nbsp;&nbsp;Insurance expense | 3680 |
| &nbsp;&nbsp;&nbsp;Other expenses | 6673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL EXPENSES** | 1091160 |
| &nbsp;&nbsp;&nbsp;Less: Fees waived by the advisor | (281264) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET EXPENSES** | 809896 |
| **NET INVESTMENT INCOME** | 7690976 |
| **REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS** |  |
| &nbsp;&nbsp;&nbsp;Net realized loss from investments | (884814) |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation on investments | 5316099 |
| **NET REALIZED AND UNREALIZED GAIN FROM INVESTMENTS** | 4431285 |
| **NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS** | $**12122261** |

---

See accompanying notes to financial statements.

---

| |
|:---|
| **Boyd Watterson Limited Duration Enhanced Income Fund** |
| **STATEMENTS OF CHANGES IN NET ASSETS** |

---

---

| | | |
|:---|:---|:---|
|  | **For the**<br>**Six Months Ended**<br>**December 31, 2022** | **For the**<br>**Year Ended**<br>**June 30, 2022** |
| **FROM OPERATIONS** | **(Unaudited)** |  |
| &nbsp;&nbsp;&nbsp;Net investment income | $7690976 | $10355365 |
| &nbsp;&nbsp;&nbsp;Net realized loss from investments | (884814) | (1474915) |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | 5316099 | (30368429) |
| Net increase (decrease) in net assets resulting from operations | 12122261 | (21487979) |
| **DISTRIBUTIONS TO SHAREHOLDERS** |  |  |
| &nbsp;&nbsp;&nbsp;Total distribution paid |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A | (48973) | (115350) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class C | (29154) | (49488) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class I | (1528853) | (2313837) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class I2 | (6590866) | (9201854) |
| Net decrease in net assets from distributions to shareholders | (8197846) | (11680529) |
| **FROM SHARES OF BENEFICIAL INTEREST** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from shares sold: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A | 132452 | 73338 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class C |  | 134969 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class I | 2844811 | 46015914 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class I2 | 995612 | 82767861 |
| &nbsp;&nbsp;&nbsp;Reinvestment of distributions to shareholders: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A | 48973 | 115349 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class C | 29154 | 49488 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class I | 1516739 | 2174098 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class I2 | 5542539 | 7971898 |
| &nbsp;&nbsp;&nbsp;Payments for shares redeemed: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A | (71897) | (2543372) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class C | (105212) | (1142711) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class I | (4002763) | (62495371) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class I2 | (4598367) | (37136094) |
| Net increase in net assets from shares of beneficial interest | 2332041 | 35985367 |
| **TOTAL INCREASE IN NET ASSETS** | 6256456 | 2816859 |
| **NET ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of Period | 356823182 | 354006323 |
| &nbsp;&nbsp;&nbsp;End of Period | $**363079638** | $**356823182** |

---

See accompanying notes to financial statements.

---

| |
|:---|
| **Boyd Watterson Limited Duration Enhanced Income Fund** |
| **STATEMENTS OF CHANGES IN NET ASSETS (Continued)** |

---

---

| | | |
|:---|:---|:---|
|  | **For the**<br>**Six Months Ended**<br>**December 31, 2022** | **For the**<br>**Year Ended**<br>**June 30, 2022** |
| **SHARE ACTIVITY** | **(Unaudited)** | |
| Class A: |  |  |
| &nbsp;&nbsp;&nbsp;Shares Sold | 14095 | 7225 |
| &nbsp;&nbsp;&nbsp;Shares Reinvested | 5305 | 11743 |
| &nbsp;&nbsp;&nbsp;Shares Redeemed | (7815) | (263430) |
| &nbsp;&nbsp;&nbsp;Net increase (decrease) in shares of beneficial interest outstanding | 11585 | (244462) |
| Class C: |  |  |
| &nbsp;&nbsp;&nbsp;Shares Sold |  | 13359 |
| &nbsp;&nbsp;&nbsp;Shares Reinvested | 3150 | 5051 |
| &nbsp;&nbsp;&nbsp;Shares Redeemed | (11309) | (116349) |
| &nbsp;&nbsp;&nbsp;Net decrease in shares of beneficial interest outstanding | (8159) | (97939) |
| Class I: |  |  |
| &nbsp;&nbsp;&nbsp;Shares Sold | 303362 | 4655627 |
| &nbsp;&nbsp;&nbsp;Shares Reinvested | 164586 | 223382 |
| &nbsp;&nbsp;&nbsp;Shares Redeemed | (431044) | (6263961) |
| &nbsp;&nbsp;&nbsp;Net increase (decrease) in shares of beneficial interest outstanding | 36904 | (1384952) |
| Class I2: |  |  |
| &nbsp;&nbsp;&nbsp;Shares Sold | 105000 | 8249587 |
| &nbsp;&nbsp;&nbsp;Shares Reinvested | 593921 | 812036 |
| &nbsp;&nbsp;&nbsp;Shares Redeemed | (490501) | (3768054) |
| &nbsp;&nbsp;&nbsp;Net increase in shares of beneficial interest outstanding | 208420 | 5293569 |

---

See accompanying notes to financial statements.

---

| |
|:---|
| **Boyd Watterson Limited Duration Enhanced Income Fund** |
| **FINANCIAL HIGHLIGHTS** |
| Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout the Periods Presented |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **For the**<br>**Six Months Ended**<br>**December 31, 2022** | **For the**<br>**Year Ended**<br>**June 30, 2022** | **For the**<br>**Year Ended**<br>**June 30, 2021** | **For the**<br>**Year Ended**<br>**June 30, 2020** | **For the**<br>**Period Ended**<br>**June 30, 2019 (1)** |
|  | **(Unaudited)** | | | | |
| Net asset value, beginning of period | $9.21 | $10.09 | $9.89 | $9.96 | $9.89 |
| Activity from investment operations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment income (2) | 0.17 | 0.23 | 0.26 | 0.28 | 0.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized and unrealized gain (loss) on investments | 0.12 | (0.82) | 0.23 | (0.05) | 0.14 |
| Total from investment operations | 0.29 | (0.59) | 0.49 | 0.23 | 0.24 |
| Less distributions from: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment income | (0.20) | (0.27) | (0.29) | (0.30) | (0.17) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized gains | (0.00) | (0.02) |  |  |  |
| Total distributions | (0.20) | (0.29) | (0.29) | (0.30) | (0.17) |
| Net asset value, end of period | $9.30 | $9.21 | $10.09 | $9.89 | $9.96 |
| Total return (3) | 3.20% (5) | (5.94)% | 5.02% | 2.34% | 2.41% (4) |
| Net assets, end of period (000s) | $2254 | $2125 | $4796 | $2481 | $9585 |
| Ratio of gross expenses to average net assets (4) | 0.85% (6) | 0.85% | 0.85% | 0.88% | 0.83% (6) |
| Ratio of net expenses to average net assets (4) | 0.85% (6) | 0.85% | 0.85% | 0.88% | 0.83% (6) |
| Ratio of net investment income to average net assets | 3.71% (6) | 2.39% | 2.64% | 2.78% | 3.28% (6) |
| Portfolio Turnover Rate | 6% (5) | 47% | 73% | 70% | 47% (7) |

---

(1) The
Boyd Watterson Limited Duration Enhanced Income Fund Class A commenced operations on February 28, 2019.

(2) Per
share amounts calculated using the average shares method, which more appropriately represents the per share data for the year or period.

(3) Total
returns shown exclude the effect of applicable sales charges and redemption fees and assumes reinvestment of all distributions.

(4) Does
not include the expenses of other investment companies in which the Fund invests.

(5) Not
annualized.

(6) Annualized.

(7) Portfolio
turnover is based on the Fund as a whole.

See accompanying notes to financial statements.

---

| |
|:---|
| **Boyd Watterson Limited Duration Enhanced Income Fund** |
| **FINANCIAL HIGHLIGHTS** |
| Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout the Periods Presented |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
|  | **For the**<br>**Six Months Ended**<br>**December 31, 2022** | **For the**<br>**Year Ended**<br>**June 30, 2022** | **For the**<br>**Year Ended**<br>**June 30, 2021** | **For the**<br>**Year Ended**<br>**June 30, 2021** | **For the**<br>**Period Ended**<br>**June 30, 2019 (1)** |
|  | **(Unaudited)** | | | | |
| Net asset value, beginning of period | $9.22 | $10.10 | $9.90 | $9.97 | $9.89 |
| Activity from investment operations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income (2) | 0.14 | 0.17 | 0.19 | 0.21 | 0.10 |
| &nbsp;&nbsp;&nbsp;Net realized and unrealized gain (loss) on investments | 0.12 | (0.84) | 0.22 | (0.06) | 0.14 |
| Total from investment operations | 0.26 | (0.67) | 0.41 | 0.15 | 0.24 |
| Less distributions from: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | (0.16) | (0.19) | (0.21) | (0.22) | (0.16) |
| &nbsp;&nbsp;&nbsp;Net realized gains | (0.00) | (0.02) |  |  |  |
| Total distributions | (0.16) | (0.21) | (0.21) | (0.22) | (0.16) |
| Net asset value, end of period | $9.32 | $9.22 | $10.10 | $9.90 | $9.97 |
| Total return (3) | 2.90% (5) | (6.67)% | 4.19% | 1.56% | 2.46% (5) |
| Net assets, end of period (000s) | $1611 | $1670 | $2818 | $3683 | $3351 |
| Ratio of gross expenses to average net assets (4) | 1.60% (6) | 1.60% | 1.60% | 1.63% | 1.58% (6) |
| Ratio of net expenses to average net assets (4) | 1.59% (6) | 1.59% | 1.59% | 1.59% | 1.58% (6) |
| Ratio of net investment income to average net assets | 2.95% (6) | 1.67% | 1.93% | 2.08% | 2.68% (6) |
| Portfolio Turnover Rate | 6% (5) | 47% | 73% | 70% | 47% (7) |

---

(1) The
Boyd Watterson Limited Duration Enhanced Income Fund Class C commenced operations on February 28, 2019.

(2) Per
share amounts calculated using the average shares method, which more appropriately represents the per share data for the year or period.

(3) Total
returns shown exclude the effect of applicable sales charges and redemption fees and assumes reinvestment of all distributions.

(4) Does
not include the expenses of other investment companies in which the Fund invests.

(5) Not
annualized.

(6) Annualized.

(7) Portfolio
turnover is based on the Fund as a whole.

See accompanying notes to financial statements.

---

| |
|:---|
| **Boyd Watterson Limited Duration Enhanced Income Fund** |
| **FINANCIAL HIGHLIGHTS** |
| Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout the Periods Presented |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
|  | **For the**<br>**Six Months Ended**<br>**December 31, 2022** | **For the**<br>**Year Ended**<br>**June 30, 2022** | **For the**<br>**Year Ended**<br>**June 30, 2021** | **For the**<br>**Year Ended**<br>**June 30, 2020** | **For the**<br>**Year Ended**<br>**June 30, 2019** | **For the**<br>**Year Ended**<br>**June 30, 2018** |
|  | **(Unaudited)** | | | | | |
| Net asset value, beginning of period | $9.20 | $10.08 | $9.89 | $9.97 | $9.88 | $10.02 |
| Activity from investment operations: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income (1) | 0.18 | 0.27 | 0.29 | 0.30 | 0.34 | 0.37 |
| &nbsp;&nbsp;&nbsp;Net realized and unrealized gain (loss) on investments | 0.12 | (0.83) | 0.22 | (0.05) | 0.14 | (0.19) |
| Total from investment operations | 0.30 | (0.56) | 0.51 | 0.25 | 0.48 | 0.18 |
| Less distributions from: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | (0.21) | (0.30) | (0.32) | (0.33) | (0.39) | (0.32) |
| &nbsp;&nbsp;&nbsp;Net realized gains | (0.00) | (0.02) |  |  |  |  |
| Total distributions | (0.21) | (0.32) | (0.32) | (0.33) | (0.39) | (0.32) |
| Net asset value, end of period | $9.29 | $9.20 | $10.08 | $9.89 | $9.97 | $9.88 |
| Total return (2) | 3.33% (5) | (5.69)% | 5.19% | 2.58% | 4.93% | 1.79% |
| Net assets, end of period (000s) | $67143 | $66146 | $86471 | $33653 | $17561 | $4858 |
| Ratio of gross expenses to average net assets (34) | 0.60% (6) | 0.60% | 0.60% | 0.63% | 0.62% | 0.62% |
| Ratio of net expenses to average net assets (4) | 0.60% (6) | 0.60% | 0.60% | 0.60% | 0.59% | 0.55% |
| Ratio of net investment income to average net assets | 3.95% (6) | 2.67% | 2.89% | 3.07% | 3.43% | 3.69% |
| Portfolio Turnover Rate | 6% (5) | 47% | 73% | 70% | 47% | 73% |

---

(1) Per
share amounts calculated using the average shares method, which more appropriately represents the per share data for the year or period.

(2) Total
returns shown exclude the effect of applicable sales charges and redemption fees and assumes reinvestment of all distributions.

(3) Represents
the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the advisor.

(4) Does
not include the expenses of other investment companies in which the Fund invests.

(5) Not
annualized.

(6) Annualized.

See accompanying notes to financial statements.

---

| |
|:---|
| **Boyd Watterson Limited Duration Enhanced Income Fund** |
| **FINANCIAL HIGHLIGHTS** |
| Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout the Periods Presented |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Class I2** | **Class I2** | **Class I2** | **Class I2** | **Class I2** | **Class I2** |
|  | **For the**<br>**Six Months Ended**<br>**December 31, 2022** | **For the**<br>**Year Ended**<br>**June 30, 2022** | **For the**<br>**Year Ended**<br>**June 30, 2021** | **For the**<br>**Year Ended**<br>**June 30, 2020** | **For the**<br>**Year Ended**<br>**June 30, 2019** | **For the**<br>**Year Ended**<br>**June 30, 2018** |
|  | **(Unaudited)** | | | | | |
| Net asset value, beginning of period | $9.30 | $10.17 | $9.95 | $10.01 | $9.90 | $10.03 |
| Activity from investment operations: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income (1) | 0.20 | 0.29 | 0.32 | 0.33 | 0.36 | 0.38 |
| &nbsp;&nbsp;&nbsp;Net realized and unrealized gain (loss) on investments | 0.12 | (0.84) | 0.22 | (0.06) | 0.14 | (0.19) |
| Total from investment operations | 0.32 | (0.55) | 0.54 | 0.27 | 0.50 | 0.19 |
| Less distributions from: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | (0.22) | (0.30) | (0.32) | (0.33) | (0.39) | (0.32) |
| &nbsp;&nbsp;&nbsp;Net realized gains | (0.00) | (0.02) |  |  |  |  |
| Total distributions | (0.22) | (0.32) | (0.32) | (0.33) | (0.39) | (0.32) |
| Net asset value, end of period | $9.40 | $9.30 | $10.17 | $9.95 | $10.01 | $9.90 |
| Total return (2) | 3.40% (5) | (5.54)% | 5.46% | 2.77% | 5.12% | 1.89% |
| Net assets, end of period (000s) | $292072 | $286882 | $259922 | $227338 | $202028 | $152365 |
| Ratio of gross expenses to average net assets (34) | 0.60% (6) | 0.60% | 0.60% | 0.63% | 0.61% | 0.61% |
| Ratio of net expenses to average net assets (4) | 0.40% (6) | 0.40% | 0.40% | 0.40% | 0.40% | 0.40% |
| Ratio of net investment income to average net assets | 4.15% (6) | 2.88% | 3.10% | 3.27% | 3.60% | 3.79% |
| Portfolio Turnover Rate | 6% (5) | 47% | 73% | 70% | 47% | 73% |

---

(1) Per
share amounts calculated using the average shares method, which more appropriately represents the per share data for the year or period.

(2) Total
returns shown exclude the effect of applicable sales charges and redemption fees and assumes reinvestment of all distributions.

(3) Represents
the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the advisor.

(4) Does
not include the expenses of other investment companies in which the Fund invests.

(5) Not
annualized.

(6) Annualized.

See accompanying notes to financial statements.

---

| |
|:---|
| **Boyd Watterson Limited Duration Enhanced Income Fund** |
| **NOTES TO FINANCIAL STATEMENTS (Unaudited)** |
| **December 31, 2022** |

---

**1.** **ORGANIZATION** 

Boyd Watterson Limited Duration Enhanced Income Fund (the ''Fund'') is a diversified series of shares of beneficial interest of Northern Lights Fund Trust III, a Delaware statutory trust organized on December 5, 2011 (the "Trust"). The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the ''1940 Act''). The Fund currently consists of four classes of shares. The Fund's Class I2 is the successor to the Boyd Watterson Limited Duration Mid-Grade Fund, LLC, (the "Predecessor Fund"). The Predecessor Fund was organized under the laws of the State of Delaware as a limited liability company effective July 19, 2012 and commenced operations on July 15, 2013. Class I commenced operations on April 13, 2017. Class A and Class C commenced operations on February 28, 2019. The Predecessor Fund's investment objective was to generate current income consistent with a strategy that focuses on capital preservation, without taking significant duration risk. The Fund seeks (i) income generation as a principal objective and (ii) capital preservation and total return as secondary objectives.

Each share class represents an interest in the same assets of the Fund, has the same rights and is identical in all material respects except that (i) each class of shares may bear different distribution fees; (ii) each class of shares may be subject to different (or no) sales charges; (iii) certain other class specific expenses will be borne solely by the class to which such expenses are attributable; and (iv) each class has exclusive voting rights with respect to matters relating to its own distribution arrangements. The Fund's income, expenses (other than class specific distribution fees) and realized and unrealized gains and losses are allocated proportionately each day based upon the relative net assets of each class.

**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** 

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (''GAAP"), which require 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 and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946 "Financial Services – Investment Companies" including Accounting Standards Update ("ASU") 2013-08.

**Security Valuation –** Securities listed on an exchange are valued at the last reported sale price at the close of the regular trading session of the primary exchange on the business day the value is being determined, or in the case of securities listed on NASDAQ at the NASDAQ Official Closing Price. In the absence of a sale, such securities shall be valued at the mean between the current bid and ask prices on the day of valuation. Debt securities (other than short-term obligations) are valued each day by an independent pricing service approved by the Trust's Board of Trustees (the "Board") using methods which include current market quotations from a major market maker in the securities and based on methods which include the consideration of yields or prices of securities- of comparable quality, coupon, maturity and type. The independent- pricing service does not distinguish between smaller sized bond positions known as "odd lots" and larger institutional sized bond positions known as "round lots". The Fund may fair value a particular bond if the advisor does not believe that the round lot value provided by the independent pricing service reflects fair value of the Fund's holding. Short-term debt obligations having 60 days or less remaining until maturity, at the time of purchase, may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value.

The Fund may hold securities, such as private investments, interests in commodity pools, other non-traded securities or temporarily illiquid securities, for which market quotations are not readily available or are determined to be unreliable. These securities will be valued using the "fair value" procedures approved by the Board. The Board has delegated execution of these procedures to the adviser as its valuation designee (the "Valuation Designee"). The Board may also enlist third party consultants such a valuation specialist at a public accounting firm, valuation consultant or financial officer of a security issuer on an as-needed basis to assist the Valuation Designee in determining a security-specific fair value. The Board is responsible for reviewing and approving fair value methodologies utilized by the Valuation Designee, which approval shall be based upon whether the Valuation Designee followed the valuation procedures established by the Board.

---

| |
|:---|
| **Boyd Watterson Limited Duration Enhanced Income Fund** |
| **NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)** |
| **December 31, 2022** |

---

**Fair Valuation Process –** The applicable investments are valued by the Valuation Designee pursuant to valuation procedures established by the Board. For example, fair value determinations are required for the following securities: (i) securities for which market quotations are insufficient or not readily available on a particular business day (including securities for which there is a short and temporary lapse in the provision of a price by the regular pricing source); (ii) securities for which, in the judgment of the Valuation Designee, the prices or values available do not represent the fair value of the instrument; factors which may cause the Valuation Designee to make such a judgment include, but are not limited to, the following: only a bid price or an asked price is available; the spread between bid and asked prices is substantial; the frequency of sales; the thinness of the market; the size of reported trades; and actions of the securities markets, such as the suspension or limitation of trading; (iii) securities determined to be illiquid; and (iv) securities with respect to which an event that will affect the value thereof has occurred (a "significant event") since the closing prices were established on the principal exchange on which they are traded, but prior to a Fund's calculation of its net asset value. Specifically, interests in commodity pools or managed futures pools are valued on a daily basis by reference to the closing market prices of each futures contract or other asset held by a pool, as adjusted for pool expenses. Restricted or illiquid securities, such as private investments or non-traded securities are valued based upon the current bid for the security from two or more independent dealers or other parties reasonably familiar with the facts and circumstances of the security (who should take into consideration all relevant factors as may be appropriate under the circumstances). If a current bid from such independent dealers or other independent parties is unavailable, the Valuation Designee shall determine, the fair value of such security using the following factors: (i) the type of security; (ii) the cost at date of purchase; (iii) the size and nature of the Fund's holdings; (iv) the discount from market value of unrestricted securities of the same class at the time of purchase and subsequent thereto; (v) information as to any transactions or offers with respect to the security; (vi) the nature and duration of restrictions on disposition of the security and the existence of any registration rights; (vii) how the yield of the security compares to similar securities of companies of similar or equal creditworthiness; (viii) the level of recent trades of similar or comparable securities; (ix) the liquidity characteristics of the security; (x) current market conditions; and (xi) the market value of any securities into which the security is convertible or exchangeable.

**Valuation of Fund of Funds –** The Fund may invest in portfolios of open-end or closed-end investment companies (the "Underlying Funds"). Underlying open-end investment companies are valued at their respective net asset values as reported by such investment companies. The Underlying Funds value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value by the methods established by the board of directors of the Underlying Funds. The shares of many closed-end investment companies, after their initial public offering, frequently trade at a price per share, which is different than the net asset value per share. The difference represents a market premium or market discount of such shares. There can be no assurances that the market discount or market premium on shares of any closed-end investment company purchased by the Fund will not change.

The Fund utilizes various methods to measure the fair value of all of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:

**Level 1 –** Unadjusted quoted prices in active markets for identical assets and liabilities that the Fund has the ability to access.

**Level 2 –** Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

**Level 3 –** Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund's own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The 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.

---

| |
|:---|
| **Boyd Watterson Limited Duration Enhanced Income Fund** |
| **NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)** |
| **December 31, 2022** |

---

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following table summarizes the inputs used as of December 31, 2022, for the Fund's investments measured at fair value:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Assets\* | Level 1 | Level 2 | Level 3 | Total |
| Preferred Stocks | $6467269 | $— | $— | $6467269 |
| Asset Backed Securities |  | 144022893 |  | 144022893 |
| Corporate Bonds |  | 128815507 |  | 128815507 |
| Term Loans |  | 68806599 |  | 68806599 |
| Exchange Traded Funds | 2250000 |  |  | 2250000 |
| Short-Term Investments | 8618127 |  |  | 8618127 |
| Total | $17335396 | $341644999 | $— | $358980395 |

---

The Fund did not hold any Level 3 securities during the period.

\* Refer to the Schedule of Investments for industry classifications.

**Security Transactions and Related Income –** Security transactions are accounted for on the trade date. Interest income is recognized on an accrual basis. Discounts are accreted and premiums are amortized on securities purchased over the lives of the respective securities using the effective interest method. Dividend income is recorded on the ex-dividend date. Realized gains or losses from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds. Gains and losses realized on principal payments of asset-backed securities and bank loans (paydown gains and losses) are classified as part of investment income.

**Dividends and Distributions to Shareholders –** Dividends from net investment income are declared and paid quarterly. Distributions from net realized capital gains, if any, are declared and paid annually. Dividends and distributions to shareholders are recorded on the ex -dividend date and are determined in accordance with federal income tax regulations, which may differ from GAAP. These "book/tax" differences are considered either temporary (e.g., deferred losses, capital loss carryforwards) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax -basis treatment; temporary differences do not require reclassification. These reclassifications have no effect on net assets, results from operations or net asset values per share of the Fund.

**Federal Income Taxes** – It is the Fund's policy to qualify as a regulated investment company by complying with the provisions of the Internal Revenue Code of 1986, as amended that are applicable to regulated investment companies and to distribute substantially all of its taxable income and net realized gains to shareholders. Therefore, no federal income tax provision has been recorded. The Fund recognizes the tax benefits of uncertain tax positions only where the position is "more likely than not" to be sustained assuming examination by tax authorities. Management has analyzed the Funds tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years ended June 30, 2020, through June 30, 2022 or expected to be taken in the Fund's June 30, 2023 tax returns. The Fund identifies its major tax jurisdictions as U.S. federal, Ohio and foreign jurisdictions where the Fund makes significant investments. The Fund 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 twelve months. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense of the Statement of Operations. During the six months ended December 31, 2022, the Fund did not incur any interest or penalties.

**Fixed Income Risk** – When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities owned by the Fund. In general, the market price of fixed income securities with longer maturities will increase or decrease more in response to changes in interest rates than shorter- term securities. Other risk factors include credit risk (the debtor may default) and prepayment risk (the debtor may pay its obligation early, reducing the amount of interest

---

| |
|:---|
| **Boyd Watterson Limited Duration Enhanced Income Fund** |
| **NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)** |
| **December 31, 2022** |

---

payments). These risks could affect the value of a particular investment by the Fund, possibly causing the Fund's share price and total return to be reduced and fluctuate more than other types of investments.

**Counterparty Credit Risk** – The stability and liquidity of many security transactions depends in large part on the creditworthiness of the parties to the transactions. If a counterparty to such a transaction defaults, exercising contractual rights may involve delays or costs for the Fund. Furthermore, there is a risk that a counterparty could become the subject of insolvency proceedings, and that the recovery of securities and other assets from such counterparty will be delayed or be of a value less than the value of the securities or assets originally entrusted to such counterparty.

**Bank Loans Risk** – The market for bank loans may not be highly liquid and the Fund may have difficulty selling them. These investments expose the Fund to the credit risk of both the financial institution and the underlying borrower. Bank loans settle on a delayed basis (in some cases, longer than 7 days), potentially leading to the sale proceeds of such loans not being available to meet redemptions for a substantial period of time after the sale of the bank loans. The Fund may need a line of credit in order to meet redemptions during these periods, which may increase the Fund's expenses. Certain bank loans may not be considered "securities," and purchasers, such as the Fund, therefore may not be entitled to rely on the protections of federal securities laws, including anti-fraud provisions.

**Market and Geopolitical Risk –** The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Securities in the Fund's portfolio may underperform due to inflation (or expectations for inflation), interest rates, global demand for particular products or resources, natural disasters, climate-change and climate-related events, pandemics, epidemics, terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global events similar to those in recent years, such as terrorist attacks around the world, natural disasters, social and political discord or debt crises and downgrades, among others, may result in market volatility and may have long term effects on both the U.S. and global financial markets. It is difficult to predict when similar events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund's portfolio. The coronavirus (COVID-19) global pandemic and the aggressive responses taken by many governments, including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines or similar restrictions, as well as the forced or voluntary closure of, or operational changes to, many retail and other businesses, had negative impacts, and in many cases severe negative impacts, on markets worldwide. It is not known how long such impacts, or any future impacts of other significant events described above, will or would last, but there could be a prolonged period of global economic slowdown, which may impact your Fund investment. Therefore, the Fund could lose money over short periods due to short-term market movements and over longer periods during more prolonged market downturns. During a general market downturn, multiple asset classes may be negatively affected. Changes in market conditions and interest rates can have the same impact on all types of securities and instruments. In times of severe market disruptions, you could lose your entire investment.

**LIBOR Risk –** LIBOR is used extensively in the U.S. and globally as a "benchmark" or "reference rate" for various commercial and financial contracts, including corporate and municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other derivatives. Instruments in which the Fund invests may pay interest at floating rates based on LIBOR or may be subject to interest caps or floors based on LIBOR. The industry currently anticipates the conversion of all LIBOR based instruments to Secured Overnight Financing Rate ("SOFR") based instruments in June 2023 or sooner.

Since 2017, the UK's Financial Conduct Authority had been working towards the cessation of LIBOR at the end of December 2021. In November 2020, though, the administrator of the U.S. Dollar LIBOR benchmarks, the ICE Benchmark Administration, extended the retirement date for most U.S. Dollar LIBOR rates until June 2023. Regulators and industry working groups have suggested numerous alternative reference rates to LIBOR. Leading alternatives include Sonia in the UK, €STR in the EU, Tonar in Japan, and in the U.S., the NY Fed has been working to develop the SOFR. Global consensus is still coalescing around the transition to a new reference rate and the process for amending existing contracts. Abandonment of or modifications to LIBOR could have adverse impacts on newly issued financial instruments and existing financial instruments which reference LIBOR. There also remains uncertainty and risk regarding the willingness and ability of issuers to include enhanced provisions in new and existing contracts or instruments. The transition away from LIBOR may lead to increased volatility and illiquidity in markets that are tied to LIBOR, reduced values of LIBOR-related investments,

---

| |
|:---|
| **Boyd Watterson Limited Duration Enhanced Income Fund** |
| **NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)** |
| **December 31, 2022** |

---

and reduced effectiveness of hedging strategies, adversely affecting the Fund's performance or NAV. In addition, the alternative reference rate may be an ineffective substitute resulting in prolonged adverse market conditions for the Fund.

**Expenses –** Expenses of the Trust that are directly identifiable to a specific fund are charged to that fund. Expenses, which are not readily identifiable to a specific fund, are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative sizes of the funds in the Trust.

**Indemnification –** The Trust indemnifies its officers and the Board for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the risk of loss due to these warranties and indemnities appears to be remote.

**3.** **INVESTMENT TRANSACTIONS** 

For the six months ended December 31, 2022, cost of purchases and proceeds from sales of portfolio securities, excluding short-term investments and U.S. government securities, amounted to $42,400,665 and $21,222,184 respectively. There were no purchases and proceeds from sales of U.S. government securities.

**4.** **INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PARTIES** 

Boyd Watterson Asset Management, LLC serves as the Fund's investment advisor (the "Advisor"). Pursuant to an advisory agreement with the Trust on behalf of the Fund, the Advisor, under the oversight of the Board, directs the daily operations of the Fund and supervises the performance of administrative and professional services provided by others. As compensation for its services and the related expenses borne by the Advisor, the Fund pays the Advisor a fee computed and accrued daily and paid monthly, based on the Fund's average daily net assets and is computed at the annual rate of 0.40%. Pursuant to the advisory agreement, the Fund accrued $730,383 in advisory fees for the six months ended December 31, 2022.

The Advisor has contractually agreed to reduce its fees and/or absorb expenses of the Fund ("Waiver Agreement") until at least October 31, 2023, to ensure that Total Annual Fund Operating Expenses After Fee Waiver and/or Reimbursement (exclusive of any front-end or contingent deferred loads; brokerage fees and commissions, acquired fund fees and expenses; borrowing costs (such as interest and dividend expense on securities sold short); taxes; and extraordinary expenses, such as litigation expenses (which may include indemnification of Fund officers and the Board, contractual indemnification of Fund service providers (other than the Advisor)), will not exceed 0.89%, 1.59%, 0.60%, and 0.40%, of the daily average net assets attributable to Class A, Class C, Class I, and Class I2 shares, respectively. These fee waivers and expense reimbursements are subject to possible recoupment from the Fund within the three years after the fees have been waived or reimbursed, if such recoupment can be achieved within the foregoing expense limits or within the expense limits in place at the time of the recoupment, whichever is lower. For the six months ended December 31, 2022, the Advisor waived fees in the amount of $281,264 pursuant to the Waiver Agreement.

The Board may terminate this expense reimbursement arrangement at any time. For the year ended June 30, 2020, the Advisor waived fees in the amount of $473,869 which is subject to recapture through June 30, 2023, pursuant to the Waiver Agreement. For the year ended June 30, 2021, the Advisor waived fees in the amount of $471,412, which is subject to recapture through June 30, 2024, pursuant to the Waiver Agreement. For the year ended June 30, 2022, the Advisor waived fees in the amount of $576,426, which is subject to recapture through June 30, 2025, pursuant to the Waiver Agreement.

The Trust, on behalf of the Fund, has adopted the Trust's Master Distribution and Shareholder Servicing Plan for Class A and Class C shares pursuant to Rule 12b-1 under the 1940 Act (the "Plans"). The Plans provide that a monthly service fee is calculated at an annual rate of 0.25% and 1.00% of its average daily net assets attributable the Fund's Class A and Class C shares, respectively. Pursuant to the Plans, the Fund may compensate the securities dealers or other financial intermediaries, financial institutions, investment advisors, and others for activities primarily intended to result in the sale of Fund shares and for maintenance and personal service provided to existing shareholders. The Plans further provide for periodic payments to brokers, dealers and other financial intermediaries, including insurance companies, for providing shareholder services and for promotional and other sales-related costs. Pursuant to the Plans, the table below shows the fees incurred during the six months ended December 31, 2022:

---

| | |
|:---|:---|
| Class | Distribution (12b-1) fee |
| Class A | $2816 |
| Class C | 8337 |

---

---

| |
|:---|
| **Boyd Watterson Limited Duration Enhanced Income Fund** |
| **NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)** |
| **December 31, 2022** |

---

*<u>Northern Lights Distributors, LLC (the "Distributor")</u>* acts as the Fund's principal underwriter in a continuous public offering of the Fund shares. During the six months ended December 31, 2022, the Distributor received $271 in underwriting commissions.

In addition, certain affiliates of the Distributor provide services to the Fund as follows:

*<u>Ultimus Fund Solutions, LLC ("UFS")</u>* an affiliate of the Distributor, provides administration, fund accounting, and transfer agent services to the Trust. Pursuant to an administrative servicing agreement with UFS, the Fund pays UFS customary fees based on aggregate net assets of the Fund as described in the servicing agreement for providing administration, fund accounting, and transfer agency services to the Fund. Certain officers of the Trust are also officers of UFS and are not paid any fees directly by the Fund for serving in such capacities.

*<u>Northern Lights Compliance Services, LLC</u>* <u>("*NLCS*")</u> an affiliate of UFS and the Distributor, provides a chief compliance officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives customary fees from the Fund.

*<u>BluGiant, LLC ("BluGiant")</u>* an affiliate of UFS and the Distributor, provides EDGAR conversion and filing services as well as print management services for the Fund on an ad-hoc basis. For the provision of these services, BluGiant receives customary fees from the Fund.

**5.** **DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL** 

The Statement of Assets and Liabilities represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $380,229,090 for the Fund, and differs from fair value by net unrealized appreciation (depreciation) of securities as follows:

---

| | |
|:---|:---|
| Unrealized appreciation | $189065 |
| Unrealized depreciation | (21507759) |
| Net unrealized depreciation | $(21318694) |

---

The tax character of distributions paid for the years ended June 30, 2022 and June 30, 2021 was as follows:

---

| | | |
|:---|:---|:---|
|  | Fiscal Year Ended June<br>30, 2022 | Fiscal Year Ended June<br>30, 2021 |
| Ordinary Income | $10917545 | $9946203 |
| Long-Term Capital Gain | 762984 |  |
| Return of Capital |  |  |
|  | $11680529 | $9946203 |

---

---

| |
|:---|
| **Boyd Watterson Limited Duration Enhanced Income Fund** |
| **NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)** |
| **December 31, 2022** |

---

As of June 30, 2022 the components of accumulated earnings on a tax basis were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | | Unrealized | Total |
| Undistributed | Undistributed | Post October Loss | Capital Loss Carry | Other Book/Tax | Appreciation/ | Accumulated |
| Ordinary Income | Long-Term Gains | and Late Year Loss | Forwards | Differences | (Deprecation) | Earnings/(Deficits) |
| $105670 | $83007 | $(2174740) | $— | $— | $(26647850) | $(28633913) |

---

The difference between book basis and tax basis undistributed net investment income and unrealized appreciation from investments is primarily attributable to tax adjustments for perpetual bonds.

Capital losses incurred after October 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Fund incurred and elected to defer such capital losses of $2,174,740.

**6.** **LINE OF CREDIT** 

The Fund has a committed revolving line of credit agreement with PNC Bank for investment purposes and to help maintain the Fund's liquidity, subject to the limitations of the 1940 Act for borrowings. The maximum amount of borrowing allowed under the agreement is $7,000,000. Borrowings are secured by assets held by the Fund at the custodian. The Fund has granted PNC Bank a first priority perfected security interest in the collateral pledged by the Fund. Borrowings under the PNC Bank agreement bear interest at a rate equal to the Daily Bloomberg Short-Term Bank Yield Index plus applicable margin of 2.50%, per annum, on the outstanding principal balance. The PNC Bank agreement matures on October 31, 2023. For the six months ended December 31, 2022, there were no borrowings for the Fund and no balance outstanding as of period-end.

**7.** **NEW REGULATORY UPDATES** 

In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (''ASU 2020-04''). The amendments in ASU 2020-04 provide optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of LIBOR and other interbank-offered based reference rates as of the end of 2021. ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying this ASU.

**8.** **SUBSEQUENT EVENTS** 

Subsequent events after the date of the Statement of Assets and Liabilities have been evaluated through the date the financial statements were issued. Management has determined that no events or transactions occurred requiring adjustment or disclosure in the financial statements.

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| |
|:---|
| **Boyd Watterson Limited Duration Enhanced Income Fund** |
| **EXPENSE EXAMPLES (Unaudited)** |
| **December 31, 2022** |

---

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution (12b-1) 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 mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2022 to December 31, 2022 (the ''period'').

**Actual Expenses**

The actual table below provides information about actual account values and actual expenses. You may use the information in this table, 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 column under the heading entitled ''Expenses Paid During the Period'' to estimate the expenses you paid on your account during the period.

**Hypothetical Example for Comparison Purposes**

The hypothetical table below provides information about hypothetical account values 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. Therefore, the hypothetical table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;Beginning | &nbsp;&nbsp;Ending | &nbsp;&nbsp;Expenses Paid | &nbsp;&nbsp;Expense Ratio |
|  | &nbsp;&nbsp;Account Value | &nbsp;&nbsp;Account Value | &nbsp;&nbsp;During Period | &nbsp;&nbsp;During the Period |
| &nbsp;&nbsp;Actual | &nbsp;&nbsp;7/1/22 | &nbsp;&nbsp;12/31/22 | &nbsp;&nbsp;7/1/22– 12/31/22 \* | &nbsp;&nbsp;7/1/22– 12/31/22 |
| &nbsp;&nbsp;Class A | &nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;$1032.00 | &nbsp;&nbsp;$4.35 | &nbsp;&nbsp;0.85% |
| &nbsp;&nbsp;Class C | &nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;$1029.00 | &nbsp;&nbsp;$8.13 | &nbsp;&nbsp;1.59% |
| &nbsp;&nbsp;Class I | &nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;$1033.30 | &nbsp;&nbsp;$3.08 | &nbsp;&nbsp;0.60% |
| &nbsp;&nbsp;Class I2 | &nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;$1034.00 | &nbsp;&nbsp;$2.05 | &nbsp;&nbsp;0.40% |
|  | &nbsp;&nbsp;Beginning | &nbsp;&nbsp;Ending | &nbsp;&nbsp;Expenses Paid | &nbsp;&nbsp;Expense Ratio |
| &nbsp;&nbsp;Hypothetical | &nbsp;&nbsp;Account Value | &nbsp;&nbsp;Account Value | &nbsp;&nbsp;During Period | &nbsp;&nbsp;During the Period |
| &nbsp;&nbsp;(5% return before expenses) | &nbsp;&nbsp;7/1/22 | &nbsp;&nbsp;12/31/22 | &nbsp;&nbsp;7/1/22 – 12/31/22 \* | &nbsp;&nbsp;7/1/22 – 12/31/22 |
| &nbsp;&nbsp;Class A | &nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;$1020.92 | &nbsp;&nbsp;$4.33 | &nbsp;&nbsp;0.85% |
| &nbsp;&nbsp;Class C | &nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;$1017.19 | &nbsp;&nbsp;$8.08 | &nbsp;&nbsp;1.59% |
| &nbsp;&nbsp;Class I | &nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;$1022.18 | &nbsp;&nbsp;$3.06 | &nbsp;&nbsp;0.60% |
| &nbsp;&nbsp;Class I2 | &nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;$1023.19 | &nbsp;&nbsp;$2.04 | &nbsp;&nbsp;0.40% |

---

\* 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 period (184) divided by the number of days in the fiscal year (365).

PRIVACY NOTICE

**NORTHERN LIGHTS FUND TRUST III**

Rev. February 2014

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| | |
|:---|:---|
| &nbsp;&nbsp;**FACTS** | &nbsp;&nbsp;**WHAT DOES NORTHERN LIGHTS FUND TRUST III DO WITH YOUR PERSONAL INFORMATION?** |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Why?<br>| &nbsp;&nbsp;Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;What?<br>| &nbsp;&nbsp;The types of personal information we collect and share depend on the product or service you have with us. This information can include:<br> ■ Social Security number and income<br>■ assets, account transfers and transaction history<br>■ investment experience and risk tolerance<br>When you are *no longer* our customer, we continue to share your information as described in this notice. |

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| | |
|:---|:---|
| &nbsp;&nbsp;How? | &nbsp;&nbsp;All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons Northern Lights Fund Trust III chooses to share and whether you can limit this sharing. |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Reasons we can share your personal information** | &nbsp;&nbsp;**Does Northern Lights<br> Fund Trust III share?** | &nbsp;&nbsp;**Can you limit this sharing?** |
| &nbsp;&nbsp;**For our everyday business purposes–**<br> such as to process your transactions, maintain <br> your account(s), respond to court orders and legal investigations, or report to credit bureaus | &nbsp;&nbsp;YES | &nbsp;&nbsp;NO |
| &nbsp;&nbsp;**For our marketing purposes–**<br> to offer our products and services to you | &nbsp;&nbsp;NO | &nbsp;&nbsp;We don't share. |
| **For joint marketing with other financial companies** | &nbsp;&nbsp;NO | &nbsp;&nbsp;We don't share. |
| &nbsp;&nbsp;**For our affiliates' everyday business purposes–** <br> information about your transactions and experiences | &nbsp;&nbsp;NO | &nbsp;&nbsp;We don't share. |
| &nbsp;&nbsp;**For our affiliates' everyday business purposes–** <br> information about your creditworthiness | &nbsp;&nbsp;NO | &nbsp;&nbsp;We don't share. |
| **For our affiliates to market to you** | &nbsp;&nbsp;NO | &nbsp;&nbsp;We don't share. |
| **For nonaffiliates to market to you** | &nbsp;&nbsp;NO | &nbsp;&nbsp;We don't share. |

---

---

| | |
|:---|:---|
| **Questions?** | &nbsp;&nbsp;Call 1-631-490-4300 |

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&nbsp;&nbsp;**Page 2**

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| | |
|:---|:---|
| &nbsp;&nbsp;**What we do** |  |
| &nbsp;&nbsp;**How does Northern Lights Fund Trust III protect my personal information?** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.<br> Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information.<br>|
| &nbsp;&nbsp;**How does Northern Lights Fund Trust III collect my personal information?** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We collect your personal information, for example, when you<br> ■ open an account or give us contact information<br> ■ provide account information or give us your income information<br> ■ make deposits or withdrawals from your account<br> We also collect your personal information from other companies.<br>|
| &nbsp;&nbsp;**Why can't I limit all sharing?** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal law gives you the right to limit only<br> ■ sharing for affiliates' everyday business purposes—information about your creditworthiness<br> ■ affiliates from using your information to market to you<br> ■ sharing for nonaffiliates to market to you<br> State laws and individual companies may give you additional rights to limit sharing<br>|

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---

| | |
|:---|:---|
| &nbsp;&nbsp;**Definitions** |  |
| &nbsp;&nbsp;**Affiliates** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Companies related by common ownership or control. They can be financial and nonfinancial companies.<br> ■ *Northern Lights Fund Trust III does not share with our affiliates.* <br>|
| &nbsp;&nbsp;**Nonaffiliates** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Companies not related by common ownership or control. They can be financial and nonfinancial companies.<br> ■ *Northern Lights Fund Trust III does not share with nonaffiliates so they can market to you.*<br>|
| &nbsp;&nbsp;**Joint marketing** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A formal agreement between nonaffiliated financial companies that together market financial products or services to you.<br> ■ *Northern Lights Fund Trust III does not jointly market.*<br>|

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**<u>PROXY VOTING POLICY</u>**

Information regarding how the Fund voted proxies relating to portfolio securities for the most recent twelve month period ended June 30 as well as a description of the policies and procedures that the Fund uses to determine how to vote proxies is available without charge, upon request, by calling 1-877-345-9597 or by referring to the Securities and Exchange Commission's ("SEC") website at http://www.sec.gov.

**<u>PORTFOLIO HOLDINGS</u>**

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, within sixty days after the end of the period. Form N-PORT reports are available on the SEC's website at http://www.sec.gov. The information on Form N-PORT is available without charge, upon request, by calling 1-877-345-9597.

---

| |
|:---|
| **INVESTMENT ADVISOR** |
| Boyd Watterson Asset Management, LLC |
| 1301 East 9<sup>th</sup> Street, Suite 2900 |
| Cleveland, OH 44114 |
| **ADMINISTRATOR** |
| Ultimus Fund Solutions, LLC |
| 225 Pictoria Drive, Suite 450 |
| Cincinnati, OH 45246 |
| BWD-SAR22 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not Applicable

**Item 2. Code of Ethics.** Not applicable.

**Item 3. Audit Committee Financial Expert.** Not applicable.

**Item 4. Principal Accountant Fees and Services.** Not applicable.

**Item 5. Audit Committee of Listed Companies.** Not applicable to open-end investment companies.

**Item 6. Schedule of Investments.** Schedule of investments in securities of unaffiliated issuers is included under Item 1.

**Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.** Not applicable to open-end investment companies.

**Item 8. Portfolio Managers of Closed-End Management Investment Companies.** Not applicable to open-end investment companies.

**Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.** Not applicable to open-end investment companies.

**Item 10. Submission of Matters to a Vote of Security Holders.** None

**Item 11. Controls and Procedures.** 

(a) Based on an evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of filing date of this Form N-CSR, the principal executive officer and principal financial officer of the Registrant have concluded that the disclosure controls and procedures of the Registrant are reasonably designed to ensure that the information required in filings on Form N-CSR is recorded, processed, summarized, and reported by the filing date, including that information required to be disclosed is accumulated and communicated to the Registrant's management, including the Registrant's principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no significant changes in the Registrant's internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

**Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.** Not applicable to open-end investment companies.

**Item 13. Exhibits.** 

(a)(1) Not applicable.

(a)(2) [Certifications required by Section 302 of the Sarbanes-Oxley Act of 2002 (and Item 13(a)(2) of Form N-CSR) are filed herewith.](cert1.htm)

(a)(3) Not applicable for open-end investment companies.

(a)(4) Not applicable.

(b) [Certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 (and Item 13(b) of Form N-CSR) are filed herewith.](cert2.htm)

**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) <u>Northern Lights Fund Trust III</u>

By (Signature and Title)

 <u>/s/ Eric Kane</u> 

Eric Kane, Principal Executive Officer/President

Date <u>3/7/2023</u> 

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)

 <u>/s/ Eric Kane</u> 

Eric Kane, Principal Executive Officer/President

Date <u>3/7/2023</u> 

By (Signature and Title)

 <u>/s/ Brian Curley</u> 

Brian Curley, Principal Financial Officer/Treasurer

Date <u>3/7/2023</u>

## Ex-99.Cert

CERTIFICATIONS

I, Eric Kane, certify that:

1. I have reviewed this report on Form N-CSR of the Boyd Watterson Limited Duration Enhanced Income Fund (a series of Northern Lights Fund Trust III);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: <u>3/7/2023</u> <u>/s/ Eric Kane</u>

Eric Kane

Principal Executive Officer/President

I, Brian Curley, certify that:

1. I have reviewed this report on Form N-CSR of the Boyd Watterson Limited Duration Enhanced Income Fund (a series of Northern Lights Fund Trust III);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: <u>3/7/2023</u> <u>/s/ Brian Curley</u> 

Brian Curley

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal Financial Officer/Treasurer

## Exhibit 99.906

**certification**

Eric Kane, Principal Executive Officer/President, and Brian Curley, Principal Financial Officer/Treasurer, of Northern Lights Fund Trust III (the "Registrant"), each certify to the best of his knowledge that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Registrant's periodic report on Form N-CSR for the period ended December 31, 2022 (the "Form N-CSR") fully complies with the requirements of Sections 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Principal Executive Officer/President Principal Financial Officer/Treasurer

Northern Lights Fund Trust III Northern Lights Fund Trust III

 <u>/s/ Eric Kane</u> <u>/s/ Brian Curley</u> 

Eric Kane Brian Curley

Date: <u>3/7/2023</u> Date: <u>3/7/2023</u> 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to Northern Lights Funds Trust III and will be retained by Northern Lights Fund Trust III and furnished to the Securities and Exchange Commission (the "Commission") or its staff upon request.

This certification is being furnished to the Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR filed with the Commission.