N-CSR
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09277
Viking Mutual Funds
(Exact name of registrant as specified in charter)
1 Main Street North, Minot, ND |
| 58703 |
(Address of principal offices) |
| (Zip code) |
Brent Wheeler and/or Kevin Flagstad, PO Box 500, Minot, ND 58702
(Name and address of agent for service)
Registrant’s telephone number, including area code: 701-852-5292
Date of fiscal year end: July 31st
Date of reporting period: January 31, 2018
Viking Mutual Funds
Kansas Municipal Fund
Nebraska Municipal Fund
Oklahoma Municipal Fund
Maine Municipal Fund
New Hampshire Municipal Fund
Semi-Annual Report
January 31, 2018
|
|
Investment Adviser | Principal Underwriter |
Transfer Agent | Custodian |
| |
| |
*The Funds are distributed through Integrity Funds Distributor, LLC. Member FINRA | |
|
DEAR SHAREHOLDERS:
Enclosed is the report of the operations for the Kansas Municipal Fund, Nebraska Municipal Fund, Oklahoma Municipal Fund, Maine Municipal Fund, and New Hampshire Municipal Fund (each a “Fund”, and collectively the “Funds”) for the six months ended January 31, 2018. Each Fund’s portfolio and related financial statements are presented within for your review.
Economic Recap
The Federal Open Market Committee’s (“FOMC” or “Committee”) statement at the end of January noted that the labor market has continued to strengthen and that economic activity has been rising at a solid rate. The Committee also noted that gains in employment, household spending, and business fixed investment have been solid, and the unemployment rate has stayed low. The Committee continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market conditions will remain strong. In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1-1/4 to 1-1/2 percent, after raising it three times in 2017. The Committee expects that the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.
Municipal Bond Market Recap
Returns were positive for the municipal market in the third and fourth quarters of 2017, marking four consecutive quarters of positive returns for the year. Municipals continued to perform well as investors searched for relative safety in higher quality assets amid increasing tensions between the United States and North Korea, along with continued gridlock in Washington. The supply/demand dynamic continued to remain positive for municipals. Issuance for the third quarter came in at $77.9 billion nationally, a 26.3% decrease over the same period last year. However, issuance was significantly above average in the fourth quarter, more precisely December, as issuers feared the proposed tax bill in Congress would eliminate the tax-exempt status of private activity and advance refunding bonds. Though it didn’t go as far as eliminating both, it did eliminate the tax-exempt status of municipal advance refunding bonds, which will likely decrease overall supply of municipals going forward. It also limits the amount of state and local taxes that households may deduct to $10,000. The robust supply in the fourth quarter was met with strong demand as investors expected the supply in early 2018 to be very light due to the large amount of issuance pulled forward into 2017. Issuance for the fourth quarter came in at $129.2 billion nationally, a 31.1% increase over the same quarter last year. As anticipated January issuance came in far below average at $16.9 billion a 41.9% decrease from January 2017. The municipal market sold off in January posting its worst month since November 2016 and wiping out the Funds positive performance in the first five months of the semi-annual period. Speculation of rising rates, and diminished buying by banks and insurance companies weighed on the market. The yield curve flattened over the course of the semi-annual period with rates on the 10, 20 and 30 year AAA GO bonds increasing 40, 25, and 18 basis points respectively. Virtually the entire increase in rates occurred in the month of January as municipals tracked treasury rates higher.
Fund Performance and Outlook
We continue to follow a disciplined strategy of investing to maximize tax-exempt income while seeking value in the municipal market. Recent market activity and the possibility of rising rates has lead us to favor high quality, higher coupon (4% to 5%) bonds. As interest rates fluctuate, the portfolio becomes diversified with a broad range of securities that help us achieve a high level of current tax-free income for shareholders. All else equal, the shorter maturity structure and higher coupons will be more defensive, mitigating some negative impact to each Fund’s share price should a rise in rates occur.
The Kansas Municipal Fund began the period at $10.78 per share and ended the period at $10.61 per share for a total return of -0.27%. This compares to the Barclays Capital Municipal Index’s return of -0.19%. At the end of the period the average weighted coupon and maturity of the Fund at market value was 4.87% and 9.4 years, respectively.
The Maine Municipal Fund began the period at $10.88 per share and ended the period at $10.69 per share for a total return of -0.63%. This compares to the Barclays Capital Municipal Index’s return of -0.19%. At the end of the period the average weighted coupon and maturity of the Fund at market value was 4.78% and 9.2 years, respectively.
The Nebraska Municipal Fund began the period at $10.46 per share and ended the period at $10.31 per share for a total return of -0.28%. This compares to the Barclays Capital Municipal Index’s return of -0.19%. At the end of the period the average weighted coupon and maturity of the Fund at market value was 4.90% and 11.3 years, respectively.
The New Hampshire Municipal Fund began the period at $10.55 per share and ended the period at $10.33 per share for a total return of -1.04%. This compares to the Barclays Capital Municipal Index’s return of -0.19%. At the end of the period the average weighted coupon and maturity of the Fund at market value was 4.73% and 9.7 years, respectively.
The Oklahoma Municipal Fund began the period at $11.74 per share and ended the period at $11.53 per share for a total return of -0.69%. This compares to the Barclays Capital Municipal Index’s return of -0.19%. At the end of the period the average weighted coupon and maturity of the Fund at market value was 4.68% and 10.8 years, respectively.
Income exempt from federal income taxes and each Fund's respective state tax (interest and dividend tax with respect to New Hampshire) with preservation of capital remains the primary objective of the Funds.
If you would like more frequent updates, please visit the Funds’ website at www.integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
The Portfolio Management Team
The views expressed are those of The Portfolio Management Team of Viking Fund Management, LLC (“Viking Fund Management”, “VFM”, or the “Adviser”). The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance. For Kansas Municipal Fund, Nebraska Municipal Fund, Oklahoma Municipal Fund, Maine Municipal Fund, and New Hampshire Municipal Fund, the total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.15%, 1.18%, 1.16%, 1.25%, and 1.53%, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.98%, 0.98%, 0.98%, 0.98%, and 0.98%, respectively. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2018 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.98% of average daily net assets. This expense limitation agreement may only be terminated or modified prior to November 29, 2018 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider each Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
Bond prices and therefore the value of bond funds decline as interest rates rise. Because each Fund invests in securities of a single state, the Funds are more susceptible to factors adversely impacting the respective state than a municipal bond fund that does not concentrate its securities in a single state.
For investors subject to the alternative minimum tax, a portion of the each Fund’s dividends may be taxable. Distributions of capital gains are generally taxable.
KANSAS MUNICIPAL FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended January 31, 2018
| 1 year | 3 year | 5 year | 10 year | Since Inception* |
Class A Without sales charge | 2.16% | 1.36% | 1.94% | 3.08% | 4.06% |
Class A With sales charge (2.50%) | -0.36% | 0.52% | 1.43% | 2.82% | 3.96% |
* November 15, 1990 for Class A |
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.15%. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.98%. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2018 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.98% of average daily net assets. This expense limitation agreement may only be terminated or modified prior to November 29, 2018 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares.
The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends. The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser.
NEBRASKA MUNICIPAL FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended January 31, 2018
| 1 year | 3 year | 5 year | 10 year | Since Inception* |
Class A Without sales charge | 2.96% | 1.32% | 1.97% | 3.04% | 3.58% |
Class A With sales charge (2.50%) | 0.41% | 0.48% | 1.46% | 2.79% | 3.47% |
* November 17, 1993 for Class A |
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.18%. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.98%. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2018 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.98% of average daily net assets. This expense limitation agreement may only be terminated or modified prior to November 29, 2018 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares.
The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends. The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser.
OKLAHOMA MUNICIPAL FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended January 31, 2018
| 1 year | 3 year | 5 year | 10 year | Since Inception* |
Class A Without sales charge | 2.30% | 1.36% | 1.88% | 3.28% | 3.81% |
Class A With sales charge (2.50%) | -0.30% | 0.52% | 1.37% | 3.02% | 3.69% |
* September 25, 1996 for Class A |
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.16%. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.98%. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2018 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.98% of average daily net assets. This expense limitation agreement may only be terminated or modified prior to November 29, 2018 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares.
The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends. The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser.
MAINE MUNICIPAL FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended January 31, 2018
| 1 year | 3 year | 5 year | 10 year | Since Inception* |
Class A Without sales charge | 1.81% | 0.64% | 1.42% | 2.81% | 4.18% |
Class A With sales charge (2.50%) | -0.78% | -0.21% | 0.90% | 2.55% | 4.08% |
* December 5, 1991 for Class A |
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.25%. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.98%. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2018 so that total annual fund operating expenses after fee waivers nd expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.98% of average daily net assets. This expense limitation agreement may only be terminated or modified prior to November 29, 2018 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares.
The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends. The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser.
NEW HAMPSHIRE MUNICIPAL FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment
Average Annual Total Returns for the periods ended January 31, 2018
Since Inception | |||||
| 1 year | 3 year | 5 year | 10 year | (December 31, 1992) |
Without sales charge | 1.60% | 0.20% | 1.06% | 2.50% | 3.76% |
With sales charge (2.5%) | -0.97% | -0.64% | 0.55% | 2.25% | 3.65% |
The total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.53%. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 0.98%. The Fund’s investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2018 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.98% of average daily net assets. This expense limitation agreement may only be terminated or modified prior to November 29, 2018 with the approval of the Fund’s Board of Trustees.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares.
The graph comparing the Fund’s performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund’s total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends. The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser.
KANSAS MUNICIPAL FUND
PORTFOLIO MARKET SECTORS January 31, 2018 (unaudited)
General Obligation | 48.9% |
Health Care | 18.2% |
Other Revenue | 13.1% |
Utilities | 12.4% |
Cash Equivalents and Other | 3.2% |
Transportation | 2.8% |
Education | 1.4% |
Housing | 0.0% |
100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets and are subject to change.
SCHEDULE OF INVESTMENTS January 31, 2018 (unaudited)
| Principal | Fair | ||
|
| Amount |
| Value |
MUNICIPAL BONDS (96.8%) | ||||
| ||||
Education (1.4%) | ||||
Kansas Development Finance Authority 5.000% 09/01/2039 | $ | 200,000 | $ | 208,612 |
Kansas Development Finance Authority 5.000% 06/01/2027 | 250,000 | 271,195 | ||
Sedgwick County Unified School District No 266 Maize 5.250% 09/01/2020 | 345,000 | 352,787 | ||
Sedgwick County Unified School District No 266 Maize 5.250% 09/01/2020 | 15,000 | 15,328 | ||
| 847,922 | |||
General Obligation (48.9%) | ||||
Bourbon County Unified School District No 234 Fort Scott 5.000% 09/01/2027 | 250,000 | 286,950 | ||
Bourbon County Unified School District No 234 Fort Scott 5.000% 09/01/2028 | 250,000 | 284,027 | ||
Bourbon County Unified School District No 234 Fort Scott 5.000% 09/01/2029 | 250,000 | 281,487 | ||
Bourbon County Unified School District No 234 Fort Scott 5.000% 09/01/2030 | 250,000 | 280,375 | ||
Bourbon County Unified School District No 234 Fort Scott 5.000% 09/01/2031 | 500,000 | 559,160 | ||
Butler County Unified School District No 402 Augusta 5.250% 09/01/2021 | 560,000 | 572,538 | ||
Butler County Unified School District No 402 Augusta 4.000% 09/01/2030 | 250,000 | 274,935 | ||
Butler County Unified School District No 385 Andover 5.000% 09/01/2018 | 500,000 | 510,680 | ||
County of Clay KS 4.000% 10/01/2036 | 500,000 | 516,230 | ||
Cowley County Unified School District No 470 Arkansas City 5.500% 09/01/2021 | 100,000 | 102,289 | ||
Cowley County Unified School District No 470 Arkansas City 4.750% 09/01/2027 | 490,000 | 500,687 | ||
Dickinson County Unified School District No 473 Chapman 5.000% 09/01/2027 | 325,000 | 343,193 | ||
Dickinson County Unified School District No 473 Chapman 4.400% 09/01/2029 | 100,000 | 104,662 | ||
Douglas County Unified School District No 348 Baldwin City 4.000% 09/01/2030 | 250,000 | 273,490 | ||
Douglas County Unified School District No 491 Eudora 5.500% 09/01/2024 | 250,000 | 256,005 | ||
Douglas County Unified School District No 491 Eudora 5.000% 09/01/2023 | 375,000 | 395,812 | ||
Douglas County Unified School District No 491 Eudora 5.125% 09/01/2029 | 250,000 | 264,362 | ||
*Franklin County Unified School District No 290 Ottawa 5.000% 09/01/2040 | 3,000,000 | 3,323,520 | ||
Harvey County Unified School District No 373 Newton 4.000% 09/01/2018 | 250,000 | 254,395 | ||
Harvey County Unified School District No 373 Newton 5.000% 09/01/2023 | 200,000 | 204,532 | ||
Harvey County Unified School District No 373 Newton 5.000% 09/01/2025 | 1,000,000 | 1,022,660 | ||
Jackson County Unified School District No 336 Holton 5.000% 09/01/2029 | 135,000 | 153,803 | ||
Jackson County Unified School District No 336 Holton 5.000% 09/01/2034 | 140,000 | 159,499 | ||
Jackson County Unified School District No 336 Holton 5.000% 09/01/2029 | 115,000 | 130,963 | ||
Jackson County Unified School District No 336 Holton 5.000% 09/01/2034 | 110,000 | 125,269 | ||
Johnson & Miami Counties Unified School District No 230 Spring Hills 4.000% 09/01/2036 | 500,000 | 525,295 | ||
Johnson County Unified School District No 231 Gardner Edgerton 5.000% 10/01/2025 | 250,000 | 286,755 | ||
Johnson County Unified School District No 233 Olathe 4.000% 09/01/2029 | 500,000 | 544,090 | ||
Johnson County Unified School District No 233 Olathe 4.000% 09/01/2018 | 150,000 | 152,760 | ||
City of Junction City KS 5.000% 09/01/2025 | 5,000 | 5,014 | ||
City of Junction City KS 4.250% 09/01/2021 | 100,000 | 104,396 | ||
City of Junction City KS 4.400% 09/01/2022 | 100,000 | 104,630 | ||
City of Junction City KS 4.500% 09/01/2023 | 100,000 | 104,786 | ||
Leavenworth County Unified School District No 453 5.250% 03/01/2024 | 200,000 | 212,496 | ||
Leavenworth County Unified School District No 453 4.750% 09/01/2025 | 300,000 | 317,376 | ||
*Leavenworth County Unified School District No 453 5.125% 03/01/2029 | 1,000,000 | 1,062,000 | ||
Leavenworth County Unified School District No 458 5.000% 09/01/2029 | 500,000 | 562,390 | ||
Leavenworth County Unified School District No 469 4.000% 09/01/2030 | 320,000 | 341,014 | ||
Leavenworth County Unified School District No 469 4.000% 09/01/2032 | 500,000 | 526,085 | ||
City of Leawood KS 5.000% 09/01/2024 | 500,000 | 589,850 | ||
Wichita County Unified School District 467 Leoti 5.000% 10/01/2018 | 100,000 | 102,582 | ||
City of Manhattan KS 5.000% 11/01/2028 | 130,000 | 133,427 | ||
City of Manhattan KS 5.000% 11/01/2019 | 1,000,000 | 1,057,200 | ||
Miami County Unified School District No 368 Paola 5.000% 09/01/2027 | 135,000 | 150,129 | ||
Miami County Unified School District No 368 Paola 5.000% 09/01/2027 | 105,000 | 116,806 | ||
Miami County Unified School District No 368 Paola 5.000% 09/01/2027 | 10,000 | 11,002 | ||
Neosho County Unified School District No 413 4.000% 09/01/2031 | 250,000 | 261,250 | ||
City of Newton KS 5.000% 09/01/2021 | 100,000 | 105,550 | ||
City of Newton KS 4.750% 09/01/2029 | 435,000 | 457,446 | ||
City of Park City KS 5.100% 12/01/2020 | 200,000 | 213,386 | ||
City of Park City KS 5.500% 12/01/2024 | 100,000 | 107,414 | ||
City of Park City KS 6.000% 12/01/2029 | 500,000 | 541,580 | ||
City of Park City KS 5.375% 12/01/2025 | 250,000 | 267,360 | ||
County of Scott KS 5.000% 04/01/2032 | 500,000 | 572,385 | ||
Scott County Unified School District No 466 Scott City 5.000% 09/01/2034 | 500,000 | 554,915 | ||
Sedgwick County Unified School District No 261 Haysville 5.000% 11/01/2021 | 5,000 | 5,002 | ||
Sedgwick County Unified School District No 262 Valley Center 5.000% 09/01/2018 | 100,000 | 102,302 | ||
Sedgwick County Unified School District No 262 Valley Center 5.000% 09/01/2028 | 485,000 | 496,165 | ||
Sedgwick County Unified School District No 262 Valley Center 5.000% 09/01/2028 | 15,000 | 15,273 | ||
Sedgwick County Unified School District No 262 Valley Center 5.000% 09/01/2024 | 245,000 | 250,177 | ||
Sedgwick County Unified School District No 262 Valley Center 5.000% 09/01/2024 | 5,000 | 5,104 | ||
Sedgwick County Unified School District No 262 Valley Center 5.000% 09/01/2035 | 1,000,000 | 1,124,520 | ||
Sedgwick County Unified School District No 265 Goddard 4.250% 10/01/2020 | 750,000 | 766,500 | ||
Sedgwick County Unified School District No 265 Goddard 4.500% 10/01/2026 | 250,000 | 255,660 | ||
Sedgwick County Unified School District No 266 Maize 5.250% 09/01/2019 | 215,000 | 219,853 | ||
Sedgwick County Unified School District No 266 Maize 5.250% 09/01/2019 | 10,000 | 10,225 | ||
County of Seward KS 5.000% 08/01/2034 | 260,000 | 282,045 | ||
County of Seward KS 5.000% 08/01/2034 | 240,000 | 257,198 | ||
Seward County Unified School District No 480 Liberal 5.000% 09/01/2034 |
| 500,000 | 571,295 | |
Seward County Unified School District No 480 Liberal 4.250% 09/01/2039 | 500,000 | 551,600 | ||
Seward County Unified School District No 480 Liberal 5.000% 09/01/2033 | 85,000 | 96,858 | ||
Seward County Unified School District No 480 Liberal 5.000% 09/01/2033 | 415,000 | 468,415 | ||
Seward County Unified School District No 480 Liberal 5.000% 09/01/2029 | 1,000,000 | 1,148,230 | ||
City of Topeka KS 4.000% 08/15/2023 | 245,000 | 267,753 | ||
City of Wichita KS 4.500% 09/01/2022 | 150,000 | 151,554 | ||
City of Wichita KS 4.750% 09/01/2027 | 180,000 | 181,886 | ||
Wyandotte County Unified School District No 202 Turner 5.250% 09/01/2018 | 100,000 | 102,507 | ||
Wyandotte County Unified School District No 202 Turner 5.000% 09/01/2025 | 250,000 | 286,355 | ||
Wyandotte County Unified School District No 500 Kansas City 5.000% 09/01/2026 | 1,000,000 |
| 1,166,430 | |
| 30,055,799 | |||
Health Care (18.2%) | ||||
Ashland Public Building Commission 5.000% 09/01/2030 | 1,020,000 | 1,079,701 | ||
Ashland Public Building Commission 5.000% 09/01/2035 | 500,000 | 524,990 | ||
Ashland Public Building Commission 5.000% 09/01/2032 | 550,000 | 585,822 | ||
Kansas Development Finance Authority 5.000% 06/15/2039 | 1,000,000 | 1,031,930 | ||
Kansas Development Finance Authority 5.000% 01/01/2040 | 435,000 | 465,241 | ||
Kansas Development Finance Authority 5.000% 01/01/2040 | 65,000 | 67,638 | ||
Kansas Development Finance Authority 5.150% 11/15/2023 | 250,000 | 265,113 | ||
Kansas Development Finance Authority 5.250% 11/15/2024 | 250,000 | 266,808 | ||
Kansas Development Finance Authority 5.500% 11/15/2029 | 100,000 | 106,031 | ||
Kansas Development Finance Authority 5.000% 05/15/2025 | 250,000 | 260,418 | ||
Kansas Development Finance Authority 5.000% 05/15/2035 | 1,000,000 | 1,044,810 | ||
Kansas Development Finance Authority 5.000% 03/01/2028 | 755,000 | 795,325 | ||
Kansas Development Finance Authority 4.125% 11/15/2027 | 100,000 | 105,697 | ||
Lincoln County Public Building Commission 5.500% 03/01/2035 | 500,000 | 501,710 | ||
City of Manhattan KS 5.000% 11/15/2023 | 250,000 | 279,703 | ||
City of Manhattan KS 5.000% 11/15/2024 | 250,000 | 278,313 | ||
City of Manhattan KS 5.000% 11/15/2029 | 500,000 | 544,335 | ||
City of Olathe KS 5.000% 09/01/2030 | 250,000 | 263,350 | ||
City of Olathe KS 4.000% 09/01/2028 | 250,000 | 259,144 | ||
City of Olathe KS 4.000% 09/01/2030 | 445,000 | 459,160 | ||
University of Kansas Hospital Authority 4.000% 09/01/2040 | 500,000 | 512,295 | ||
University of Kansas Hospital Authority 5.000% 09/01/2035 | 500,000 | 556,685 | ||
University of Kansas Hospital Authority 5.000% 03/01/2031 | 500,000 | 571,920 | ||
City of Wichita KS 5.000% 11/15/2029 | 300,000 |
| 335,244 | |
| 11,161,383 | |||
Other Revenue (13.1%) | ||||
Butler County Public Building Commission 4.500% 10/01/2021 | 160,000 | 160,392 | ||
City of Dodge City KS 5.000% 06/01/2021 | 310,000 | 324,626 | ||
City of Dodge City KS 4.400% 06/01/2025 | 350,000 | 363,797 | ||
City of Dodge City KS 4.500% 06/01/2028 | 100,000 | 104,073 | ||
*City of Dodge City KS 5.250% 06/01/2031 | 1,000,000 | 1,050,470 | ||
Kansas Development Finance Authority 4.125% 05/01/2031 | 500,000 | 517,820 | ||
Kansas Development Finance Authority 5.000% 11/01/2034 | 500,000 | 523,160 | ||
Kansas Development Finance Authority 5.000% 05/01/2035 | 250,000 | 257,893 | ||
Lincoln County Public Building Commission 5.000% 03/01/2028 | 250,000 | 250,753 | ||
City of Manhattan KS 5.000% 12/01/2026 | 470,000 | 479,522 | ||
City of Manhattan KS 4.500% 12/01/2025 | 500,000 | 529,470 | ||
*City of Manhattan KS 5.000% 12/01/2032 | 1,000,000 | 1,069,300 | ||
County of Neosho KS 4.000% 10/01/2023 | 500,000 | 518,580 | ||
Topeka Public Building Commission 5.000% 06/01/2022 | 255,000 | 263,003 | ||
Washington County Public Building Commission 4.000% 09/01/2028 | 600,000 | 635,346 | ||
Washington County Public Building Commission 5.000% 09/01/2032 | 500,000 | 568,695 | ||
Washington County Public Building Commission 5.000% 09/01/2037 | 400,000 |
| 454,956 | |
| 8,071,856 | |||
Transportation (2.8%) | ||||
State of Kansas Department of Transportation 5.000% 09/01/2033 | 500,000 | 581,595 | ||
State of Kansas Department of Transportation 5.000% 09/01/2034 | 500,000 | 578,460 | ||
State of Kansas Department of Transportation 5.000% 09/01/2035 | 250,000 | 289,603 | ||
Kansas Development Finance Authority 4.625% 10/01/2026 | 250,000 |
| 255,243 | |
| 1,704,901 | |||
Utilities (12.4%) | ||||
Chisholm Creek Utility Authority 4.000% 09/01/2029 | 250,000 | 267,773 | ||
Johnson County Water District No 1 5.000% 07/01/2022 | 725,000 | 823,332 | ||
*Kansas Municipal Energy Agency 5.750% 07/01/2038 | 1,000,000 | 1,130,200 | ||
Kansas Power Pool 4.500% 12/01/2028 | 500,000 | 521,360 | ||
Kansas Power Pool 5.000% 12/01/2031 | 750,000 | 820,853 | ||
Kansas Power Pool 4.000% 12/01/2031 | 500,000 | 528,565 | ||
Wyandotte County Kansas City Unified Government Utility System Revenue 5.000% 09/01/2024 | 200,000 | 207,521 | ||
Wyandotte County Kansas City Unified Government Utility System Revenue 5.000% 09/01/2029 | 500,000 | 518,805 | ||
Wyandotte County Kansas City Unified Government Utility System Revenue 5.000% 09/01/2036 | 250,000 | 269,175 | ||
*Wyandotte County Kansas City Unified Government Utility System Revenue 5.000% 09/01/2032 | 1,250,000 | 1,397,763 | ||
Wyandotte County Kansas City Unified Government Utility System Revenue 5.000% 09/01/2035 | 500,000 | 555,980 | ||
Wyandotte County Kansas City Unified Government Utility System Revenue 5.000% 09/01/2028 | 500,000 |
| 572,850 | |
| 7,614,177 | |||
TOTAL MUNICIPAL BONDS (COST: $57,754,201) | $ | 59,456,038 | ||
OTHER ASSETS LESS LIABILITIES (3.2%) |
| 1,935,842 | ||
NET ASSETS (100.0%) | $ | 61,391,880 | ||
*Indicates all or a portion of bonds are segregated by the custodian to cover when-issued or delayed-delivery purchases. | ||||
| ||||
The accompanying notes are an integral part of these financial statements. |
NEBRASKA MUNICIPAL FUND
PORTFOLIO MARKET SECTORS January 31, 2018 (unaudited)
Utilities | 33.2% |
General Obligation | 26.3% |
Education | 21.0% |
Health Care | 7.1% |
Other Revenue | 6.2% |
Transportation | 2.4% |
Cash Equivalents and Other | 2.1% |
Housing | 1.7% |
100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets and are subject to change.
SCHEDULE OF INVESTMENTS January 31, 2018 (unaudited)
Principal | Fair | |||
| Amount |
| Value | |
MUNICIPAL BONDS (97.9%) | ||||
| ||||
Education (21.0%) | ||||
County of Douglas NE 5.500% 07/01/2030 | $ | 350,000 | $ | 382,108 |
*County of Douglas NE 5.875% 07/01/2040 | 1,500,000 | 1,650,884 | ||
Douglas County Hospital Authority No 2 4.750% 09/01/2028 | 200,000 | 203,770 | ||
Nebraska Educational Health & Social Services Finance Authority 5.050% 09/01/2030 | 250,000 | 272,207 | ||
Nebraska Elementary & Secondary School Finance Authority 4.750% 09/01/2028 | 250,000 | 254,433 | ||
University of Nebraska Facilities Corp 5.000% 12/15/2025 | 1,500,000 | 1,788,584 | ||
University of Nebraska 5.000% 07/01/2035 | 1,500,000 | 1,704,255 | ||
University of Nebraska 5.000% 05/15/2035 | 500,000 | 569,265 | ||
University of Nebraska 5.000% 05/15/2033 | 250,000 | 288,208 | ||
University of Nebraska 5.000% 05/15/2033 | 600,000 | 606,258 | ||
University of Nebraska 4.000% 07/01/2024 | 250,000 | 257,290 | ||
University of Nebraska 4.500% 05/15/2030 | 250,000 | 265,625 | ||
University of Nebraska 5.000% 05/15/2035 | 275,000 | 295,259 | ||
University of Nebraska 5.000% 07/01/2042 | 1,000,000 | 1,092,930 | ||
University of Nebraska 5.000% 07/01/2038 | 250,000 |
| 277,540 | |
| 9,908,616 | |||
General Obligation (26.3%) | ||||
Omaha School District 5.000% 12/15/2029 | 1,630,000 | 1,947,752 | ||
Elkhorn School District 4.000% 12/15/2034 | 300,000 | 315,375 | ||
Elkhorn School District 4.000% 12/15/2030 | 500,000 | 532,960 | ||
Hall County Airport Authority 5.000% 07/15/2030 | 410,000 | 439,614 | ||
Hall County Airport Authority 5.000% 07/15/2031 | 435,000 | 465,751 | ||
Grand Island Public Schools 5.000% 12/15/2033 | 500,000 | 564,150 | ||
Grand Island Public Schools 5.000% 12/15/2039 | 500,000 | 567,355 | ||
City of Omaha NE 5.000% 04/15/2025 | 750,000 | 884,865 | ||
City of Omaha NE 5.000% 04/15/2027 | 955,000 | 1,130,414 | ||
City of Omaha NE 5.000% 04/15/2028 | 500,000 | 587,465 | ||
City of Omaha NE 5.000% 10/15/2025 | 45,000 | 47,591 | ||
City of Omaha NE 5.000% 10/15/2025 | 205,000 | 217,036 | ||
Papillion La Vista School District 5.000% 12/01/2028 | 250,000 | 257,215 | ||
Papio Missouri River Natural Resource District 5.000% 12/15/2026 | 250,000 | 255,135 | ||
Papio Missouri River Natural Resource District 4.000% 12/15/2030 | 1,000,000 | 1,028,900 | ||
Platte County School District No 1 Columbus Public Schools 5.000% 12/15/2039 | 750,000 | 842,925 | ||
City of Ralston NE 4.500% 09/15/2031 | 500,000 | 453,370 | ||
Gretna Public Schools 5.000% 12/15/2035 | 250,000 | 283,203 | ||
Scotts Bluff County School District No 32 5.000% 12/01/2031 | 250,000 | 286,918 | ||
City of Sidney NE 4.000% 12/15/2036 | 1,250,000 |
| 1,298,300 | |
| 12,406,294 | |||
Health Care (7.1%) | ||||
Adams County Hospital Authority No 1 5.250% 12/15/2033 | 250,000 | 253,593 | ||
Douglas County Hospital Authority No 2 5.500% 01/01/2030 | 500,000 | 527,935 | ||
Douglas County Hospital Authority No 2 5.000% 05/15/2027 | 200,000 | 231,438 | ||
Douglas County Hospital Authority No 3 5.500% 11/01/2038 | 795,000 | 818,731 | ||
Douglas County Hospital Authority No 3 5.500% 11/01/2038 | 415,000 | 427,388 | ||
Lincoln County Hospital Authority No 1 5.000% 11/01/2023 | 250,000 | 274,248 | ||
Lincoln County Hospital Authority No 1 5.000% 11/01/2024 | 250,000 | 273,353 | ||
Lincoln County Hospital Authority No 1 5.000% 11/01/2025 | 250,000 | 273,188 | ||
Lincoln County Hospital Authority No 1 5.000% 11/01/2032 | 250,000 |
| 261,558 | |
| 3,341,432 | |||
Housing (1.7%) | ||||
Hospital Authority No 1 of Lancaster County 5.500% 01/01/2030 | 250,000 | 263,968 | ||
Sarpy County Hospital Authority No 1 5.500% 01/01/2030 | 500,000 |
| 527,935 | |
| 791,903 | |||
Other Revenue (6.2%) | ||||
West Haymarket Joint Public Agency 5.000% 12/15/2042 | 750,000 | 829,028 | ||
Nebraska Cooperative Republican Platte Enhancement Project 5.125% 12/15/2033 | 250,000 | 256,628 | ||
Nebraska Cooperative Republican Platte Enhancement Project 5.000% 12/15/2038 | 160,000 | 164,083 | ||
Nebraska Cooperative Republican Platte Enhancement Project 4.000% 12/15/2026 | 250,000 | 260,935 | ||
Omaha Public Facilities Corp 4.000% 11/15/2031 | 115,000 | 116,438 | ||
*City of Omaha NE 5.000% 02/01/2027 | 1,000,000 | 1,124,190 | ||
Upper Republican Natural Resource District 4.000% 12/15/2024 | 200,000 |
| 204,672 | |
| 2,955,974 | |||
Transportation (2.4%) | ||||
City of Lincoln NE 5.500% 08/15/2031 | 500,000 | 549,285 | ||
Omaha Airport Authority 5.000% 12/15/2027 | 500,000 |
| 581,655 | |
| 1,130,940 | |||
Utilities (33.2%) | ||||
*Central Plains Energy Project 5.000% 09/01/2027 | 2,000,000 | 2,221,280 | ||
Central Plains Energy Project 5.250% 09/01/2037 | 500,000 | 561,865 | ||
Central Plains Energy Project 5.000% 09/01/2042 | 500,000 | 555,320 | ||
City of Columbus NE Combined Revenue 4.000% 12/15/2032 | 100,000 | 105,945 | ||
City of Grand Island NE Sewer System Revenue 5.000% 09/15/2026 | 250,000 | 283,163 | ||
City of Hastings NE Combined Utility Revenue 4.000% 10/15/2032 | 500,000 | 525,240 | ||
*City of Lincoln NE Electric System Revenue 5.000% 09/01/2037 | 1,000,000 | 1,103,610 | ||
City of Lincoln NE Solid Waste Management Revenue 4.000% 08/01/2025 | 275,000 | 302,151 | ||
City of Lincoln NE Solid Waste Management Revenue 4.000% 08/01/2027 | 400,000 | 434,400 | ||
City of Lincoln NE Water Revenue 4.000% 08/15/2025 | 250,000 | 258,595 | ||
City of Lincoln NE Water Revenue 4.500% 08/15/2034 | 250,000 | 257,820 | ||
Metropolitan Utilities District of Omaha 4.000% 12/15/2024 | 750,000 | 808,770 | ||
Metropolitan Utilities District of Omaha 4.000% 12/15/2026 | 250,000 | 268,804 | ||
Municipal Energy Agency of Nebraska 5.125% 04/01/2024 | 195,000 | 203,414 | ||
Municipal Energy Agency of Nebraska 5.000% 04/01/2030 | 500,000 | 549,360 | ||
Municipal Energy Agency of Nebraska 5.000% 04/01/2032 | 100,000 | 109,504 | ||
Nebraska Public Power District 5.000% 01/01/2041 | 250,000 | 283,690 | ||
*Nebraska Public Power District 5.000% 01/01/2036 | 2,355,000 | 2,644,500 | ||
Nebraska Public Power District 5.000% 01/01/2028 | 250,000 | 277,780 | ||
Nebraska Public Power District 5.000% 01/01/2030 | 500,000 | 553,734 | ||
Omaha Public Power District 5.500% 02/01/2033 | 100,000 | 100,000 | ||
City of Omaha NE Sewer Revenue 5.000% 11/15/2029 | 250,000 | 287,992 | ||
City of Omaha NE Sewer Revenue 5.000% 11/15/2030 | 250,000 | 286,650 | ||
City of Omaha NE Sewer Revenue 5.000% 11/15/2031 | 500,000 | 571,630 | ||
City of Omaha NE Sewer Revenue 4.000% 04/01/2035 | 250,000 | 262,337 | ||
Omaha Public Power District Nebraska City Station Unit 2 5.000% 02/01/2032 | 250,000 | 283,042 | ||
Omaha Public Power District Nebraska City Station Unit 2 5.000% 02/01/2031 | 445,000 | 509,583 | ||
Omaha Public Power District Nebraska City Station Unit 2 4.000% 02/01/2032 | 400,000 | 420,980 | ||
Omaha Public Power District Nebraska City Station Unit 2 4.000% 02/01/2035 | 365,000 | 382,312 | ||
Southern Public Power District 5.000% 12/15/2023 | 250,000 |
| 258,283 | |
| 15,671,754 | |||
| ||||
TOTAL MUNICIPAL BONDS (COST: $45,037,901) | $ | 46,206,913 | ||
| ||||
OTHER ASSETS LESS LIABILITIES (2.1%) |
| 989,836 | ||
| ||||
NET ASSETS (100.0%) | $ | 47,196,749 | ||
| ||||
*Indicates all or a portion of bonds are segregated by the custodian to cover when-issued or delayed-delivery purchases. | ||||
| ||||
The accompanying notes are an integral part of these financial statements. |
OKLAHOMA MUNICIPAL FUND
PORTFOLIO MARKET SECTORS January 31, 2018 (unaudited)
Utilities | 38.9% |
Other Revenue | 24.9% |
Education | 19.7% |
Transportation | 7.3% |
General Obligation | 4.1% |
Health Care | 3.3% |
Cash Equivalents and Other | 1.8% |
Housing | 0.0% |
100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets and are subject to change.
SCHEDULE OF INVESTMENTS January 31, 2018 (unaudited)
Principal | Fair | |||
| Amount |
| Value | |
MUNICIPAL BONDS (98.2%) | ||||
Education (19.7%) | ||||
Okarche Economic Development Authority 5.000% 09/01/2023 | $ | 250,000 | $ | 278,347 |
Oklahoma Agricultural & Mechanical Colleges 5.000% 07/01/2039 | 140,000 | 146,842 | ||
Oklahoma Agricultural & Mechanical Colleges 4.400% 08/01/2039 | 740,000 | 771,583 | ||
*Oklahoma City Community College/OK 4.375% 07/01/2030 | 750,000 | 778,732 | ||
Oklahoma Development Finance Authority 4.400% 12/01/2029 | 250,000 | 258,908 | ||
Oklahoma Development Finance Authority 5.000% 06/01/2039 | 500,000 | 556,255 | ||
Oklahoma Development Finance Authority 5.000% 06/01/2029 | 250,000 | 285,758 | ||
Oklahoma Development Finance Authority 5.000% 06/01/2034 | 500,000 | 564,030 | ||
Oklahoma Development Finance Authority 5.000% 06/01/2039 | 500,000 | 554,125 | ||
Oklahoma Development Finance Authority 4.000% 08/01/2030 | 280,000 | 295,744 | ||
Oklahoma Development Finance Authority 4.000% 08/01/2031 | 290,000 | 305,605 | ||
Oklahoma Development Finance Authority 4.000% 08/01/2032 | 305,000 | 320,586 | ||
Oklahoma Development Finance Authority 4.000% 08/01/2033 | 315,000 | 330,246 | ||
University of Oklahoma/The 5.000% 07/01/2036 | 1,000,000 | 1,014,680 | ||
University of Oklahoma/The 5.000% 07/01/2037 | 290,000 | 319,876 | ||
University of Oklahoma/The 5.000% 07/01/2041 | 250,000 | 272,965 | ||
University of Oklahoma/The 5.000% 07/01/2036 | 500,000 | 558,900 | ||
University of Oklahoma/The 4.000% 07/01/2040 | 650,000 | 673,888 | ||
University of Oklahoma/The 5.000% 07/01/2038 | 500,000 |
| 556,255 | |
| 8,843,325 | |||
General Obligation (4.1%) | ||||
City of Broken Arrow OK 4.125% 08/01/2031 | 180,000 | 189,187 | ||
*City of Oklahoma City OK 4.000% 03/01/2024 | 1,000,000 | 1,099,700 | ||
City of Oklahoma City OK 5.000% 03/01/2023 | 500,000 |
| 574,250 | |
| 1,863,137 | |||
Health Care (3.3%) | ||||
Oklahoma Development Finance Authority 5.000% 08/15/2025 | 350,000 | 413,581 | ||
Oklahoma Development Finance Authority 5.000% 08/15/2029 | 250,000 | 284,730 | ||
Oklahoma Development Finance Authority 4.000% 08/15/2038 | 250,000 | 255,372 | ||
Oklahoma Development Finance Authority 5.000% 02/15/2042 | 250,000 | 280,880 | ||
Tulsa County Industrial Authority 4.600% 02/01/2035 | 250,000 |
| 258,200 | |
| 1,492,763 | |||
Other Revenue (24.9%) | ||||
Collinsville Municipal Authority 5.000% 03/01/2035 | 275,000 | 296,277 | ||
Collinsville Municipal Authority 5.000% 03/01/2040 | 250,000 | 269,342 | ||
City of Oklahoma City OK 5.000% 03/01/2032 | 250,000 | 266,738 | ||
City of Oklahoma City OK 5.000% 03/01/2034 | 500,000 | 531,270 | ||
City of Oklahoma City OK 5.000% 03/01/2033 | 250,000 | 264,155 | ||
Oklahoma City Public Property Authority 4.500% 10/01/2031 | 155,000 | 155,022 | ||
Oklahoma City Public Property Authority 5.000% 10/01/2018 | 265,000 | 271,015 | ||
Oklahoma City Public Property Authority 5.000% 10/01/2027 | 350,000 | 402,952 | ||
Oklahoma City Public Property Authority 5.000% 10/01/2028 | 400,000 | 457,844 | ||
Oklahoma City Public Property Authority 5.000% 10/01/2029 | 625,000 | 710,931 | ||
Oklahoma City Public Property Authority 5.000% 10/01/2036 | 230,000 | 255,295 | ||
Oklahoma City Public Property Authority 5.000% 10/01/2039 | 835,000 | 920,512 | ||
Oklahoma Water Resources Board 5.000% 10/01/2029 | 250,000 | 289,148 | ||
Oklahoma Water Resources Board 5.000% 10/01/2033 | 500,000 | 571,130 | ||
Oklahoma Water Resources Board 5.000% 10/01/2029 | 250,000 | 295,428 | ||
Okmulgee County Governmental Building Authority 4.250% 12/01/2035 | 500,000 | 520,280 | ||
Pawnee County Public Programs Authority 4.875% 02/01/2030 | 145,000 | 154,518 | ||
*Rogers County Industrial Development Authority 4.900% 04/01/2035 | 500,000 | 535,060 | ||
Sand Springs Municipal Authority 4.250% 01/01/2035 | 250,000 | 271,353 | ||
Sand Springs Municipal Authority 4.000% 01/01/2036 | 500,000 | 520,420 | ||
Tahlequah Public Facilities Authority 4.000% 04/01/2023 | 550,000 | 588,808 | ||
Tulsa County Industrial Authority 3.000% 09/01/2027 | 245,000 | 245,907 | ||
Tulsa County Public Facilities Authority 3.000% 11/01/2022 | 500,000 | 519,590 | ||
Tulsa Airports Improvement Trust 5.000% 06/01/2023 | 420,000 | 455,650 | ||
Tulsa Airports Improvement Trust 5.000% 06/01/2024 | 230,000 | 248,218 | ||
Tulsa Airports Improvement Trust 5.250% 06/01/2025 | 245,000 | 265,426 | ||
Tulsa Airports Improvement Trust 5.250% 06/01/2026 | 360,000 | 388,940 | ||
Tulsa Parking Authority 4.000% 07/01/2025 | 500,000 |
| 525,940 | |
| 11,197,169 | |||
Transportation (7.3%) | ||||
Oklahoma Capitol Improvement Authority 4.000% 10/01/2024 | 800,000 | 859,200 | ||
Oklahoma Capitol Improvement Authority 4.000% 10/01/2025 | 1,000,000 | 1,069,110 | ||
Oklahoma Turnpike Authority 5.000% 01/01/2022 | 250,000 | 272,930 | ||
Oklahoma Turnpike Authority 5.000% 01/01/2028 | 250,000 | 270,530 | ||
Oklahoma Turnpike Authority 4.000% 01/01/2031 | 500,000 | 520,315 | ||
Oklahoma Turnpike Authority 5.000% 01/01/2030 | 250,000 |
| 274,172 | |
| 3,266,257 | |||
Utilities (38.9%) | ||||
Clinton Public Works Authority 4.000% 12/01/2034 | 750,000 | 782,550 | ||
Clinton Public Works Authority 4.000% 12/01/2039 | 500,000 | 515,725 | ||
Coweta Public Works Authority 5.000% 08/01/2034 | 245,000 | 256,978 | ||
Coweta Public Works Authority 4.000% 08/01/2032 | 1,000,000 | 1,025,740 | ||
Glenpool Utility Services Authority 5.100% 12/01/2035 | 250,000 | 269,906 | ||
Grand River Dam Authority 5.000% 06/01/2027 | 1,000,000 | 1,012,040 | ||
Grand River Dam Authority 4.800% 06/01/2033 | 200,000 | 202,276 | ||
*Grand River Dam Authority 5.250% 06/01/2040 | 2,000,000 | 2,150,880 | ||
Grand River Dam Authority 5.000% 06/01/2033 | 500,000 | 563,310 | ||
Holdenville Public Works Authority 5.000% 11/01/2033 | 620,000 | 680,524 | ||
Miami Special Utility Authority 4.000% 12/01/2036 | 500,000 | 521,345 | ||
*Midwest City Municipal Authority 5.000% 03/01/2025 | 2,000,000 | 2,176,500 | ||
Oklahoma City Water Utilities Trust 4.000% 07/01/2034 | 250,000 | 259,158 | ||
Oklahoma City Water Utilities Trust 5.000% 07/01/2031 | 250,000 | 274,428 | ||
Oklahoma City Water Utilities Trust 5.000% 07/01/2029 | 1,000,000 | 1,153,530 | ||
Oklahoma City Water Utilities Trust 5.000% 07/01/2034 | 100,000 | 114,477 | ||
Oklahoma City Water Utilities Trust 4.000% 07/01/2039 | 175,000 | 182,831 | ||
Oklahoma City Water Utilities Trust 5.000% 07/01/2034 | 250,000 | 289,913 | ||
*Oklahoma Municipal Power Authority 5.750% 01/01/2024 | 1,180,000 | 1,264,759 | ||
Oklahoma Municipal Power Authority 5.000% 01/01/2038 | 575,000 | 646,427 | ||
Oklahoma Water Resources Board 5.000% 04/01/2028 | 500,000 | 521,150 | ||
Oklahoma Water Resources Board 5.000% 04/01/2032 | 140,000 | 155,354 | ||
Oklahoma Water Resources Board 4.000% 04/01/2025 | 150,000 | 161,682 | ||
Sallisaw Municipal Authority 4.450% 01/01/2028 | 100,000 | 103,468 | ||
Sapulpa Municipal Authority 5.000% 04/01/2028 | 750,000 | 830,977 | ||
Seminole Utilities Authority 3.000% 09/01/2024 | 100,000 | 101,222 | ||
Seminole Utilities Authority 3.150% 09/01/2025 | 380,000 | 382,554 | ||
Seminole Utilities Authority 3.300% 09/01/2026 | 315,000 | 321,076 | ||
Tulsa Metropolitan Utility Authority 5.000% 10/01/2025 | 500,000 |
| 601,240 | |
| 17,522,020 | |||
| ||||
TOTAL MUNICIPAL BONDS (COST: $43,191,830) | $ | 44,184,671 | ||
| ||||
OTHER ASSETS LESS LIABILITIES (1.8%) |
| 814,893 | ||
| ||||
NET ASSETS (100.0%) | $ | 44,999,564 | ||
| ||||
* Indicates all or a portion of bonds are segregated by the custodian to cover when-issued or delayed-delivery purchases. | ||||
| ||||
The accompanying notes are an integral part of these financial statements. |
MAINE MUNICIPAL FUND
PORTFOLIO MARKET SECTORS January 31, 2018 (unaudited)
Health Care | 28.2% |
General Obligation | 27.9% |
Education | 15.4% |
Transportation | 11.7% |
Other Revenue | 6.1% |
Cash Equivalents and Other | 4.4% |
Housing | 3.6% |
Utilities | 2.7% |
100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS January 31, 2018 (unaudited)
Principal | Fair | |||
| Amount |
| Value | |
MUNICIPAL BONDS (95.6%) | ||||
| ||||
Education (15.4%) | ||||
ME Edl Std Ln Cl A A3 5.875% 12/01/2039 | $ | 120,000 | $ | 124,729 |
ME Edl Suppl Ed A A1 4.450% 12/01/2025 | 100,000 | 104,915 | ||
ME Hlth & Hgr Ed A 5.000% 07/01/2039 | 500,000 | 566,880 | ||
ME Hlth & Hgr Ed A 5.000% 07/01/2034 | 250,000 | 281,583 | ||
ME Hlth & Hgr C 4.750% 07/01/2031 | 250,000 | 266,570 | ||
ME Hlth & Hgr Ed 4.000% 07/01/2024 | 270,000 | 292,561 | ||
ME Hlth & Hgr A 5.000% 07/01/2026 | 940,000 | 1,094,263 | ||
Regl Sch Unit #1 5.000% 02/01/2026 | 100,000 |
| 109,028 | |
| 2,840,529 | |||
General Obligation (27.9%) | ||||
Auburn A 4.500% 09/01/2022 | 100,000 | 111,098 | ||
Auburn 5.000% 09/01/2021 | 250,000 | 275,658 | ||
Bangor Ser A 4.000% 09/01/2024 | 155,000 | 157151 | ||
Biddeford 4.000% 10/01/2026 | 250,000 | 280,633 | ||
Gorham 4.000% 10/01/2023 | 100,000 | 106,934 | ||
Gray 4.000% 10/15/2026 | 280,000 | 291,572 | ||
Gray 4.000% 10/15/2027 | 280,000 | 291,572 | ||
Maine St B 4.000% 06/01/2020 | 150,000 | 160,230 | ||
Maine St B 5.000% 06/01/2025 | 500,000 | 597,795 | ||
ME Hsg Ser 1 5.000% 06/15/2024 | 250,000 | 266,268 | ||
Portland A 4.250% 05/01/2029 | 150,000 | 154,245 | ||
Portland Ser B 4.125% 10/01/2029 | 100,000 | 103,097 | ||
Portland Ref 5.000% 08/01/2021 | 125,000 | 140,385 | ||
Portland Ref 5.000% 08/01/2022 | 125,000 | 140,248 | ||
Portland 5.000% 04/01/2028 | 250,000 | 303,110 | ||
Saco 4.000% 04/01/2028 | 100,000 | 103,821 | ||
Scarborough Ref 4.000% 11/01/2028 | 100,000 | 107,097 | ||
ME Sch Admin Dist #15 4.000% 11/01/2026 | 145,000 | 163,907 | ||
ME Sch Admin Dist #15 4.000% 11/01/2027 | 145,000 | 164,682 | ||
Sch Admin #51 4.250% 10/15/2029 | 250,000 | 261,338 | ||
Maine Sd #51 4.000% 10/15/2029 | 100,000 | 110,097 | ||
Waterville A 4.000% 07/01/2025 | 135,000 | 144,387 | ||
Wells Ogunquit Sd 4.000% 11/01/2024 | 100,000 | 113,290 | ||
Westbrook 5.000% 10/15/2026 | 490,000 |
| 578,822 | |
| 5,127,437 | |||
Health Care (28.2%) | ||||
ME Hlth & Hgr A Prerf 5.000% 07/01/2020 | 50,000 | 54,071 | ||
ME Hlth & Hgr A Unref 5.000% 07/01/2020 | 130,000 | 140,098 | ||
ME Hlth & Hgr B Prerf 4.500% 07/01/2031 | 10,000 | 10696 | ||
ME Hlth & Hgr B Prerf 5.250% 07/01/2023 | 10,000 | 10,876 | ||
ME Hlth & Hgr B Unref 4.500% 07/01/2031 | 190,000 | 196,031 | ||
ME Hlth & Hgr B Unref 5.250% 07/01/2023 | 190,000 | 204,873 | ||
ME H/E Auth 5.000% 07/01/2020 | 250,000 | 268,865 | ||
ME H/E Auth 5.000% 07/01/2040 | 250,000 | 264,960 | ||
*ME Hlth & Hgr Ed 5.000% 07/01/2029 | 1,000,000 | 1,103,940 | ||
ME Hlth & Hgr Ed 5.000% 07/01/2030 | 500,000 | 556,260 | ||
ME Hlth & Hgr Ed 5.000% 07/01/2031 | 500,000 | 551,055 | ||
ME Hlth & Hgr A Prerf 5.000% 07/01/2023 | 15,000 | 17,411 | ||
ME Hlth & Hgr A Unref 5.000% 07/01/2023 | 235,000 | 270,382 | ||
ME Hlth &Hgr Ed Unref 5.000% 07/01/2022 | 30,000 | 30,017 | ||
Maine Hlth & Ed Prerf 5.000% 07/01/2039 | 195,000 | 204,530 | ||
Maine Hlth & Ed Prerf 5.000% 07/01/2026 | 35,000 | 36,710 | ||
Maine Hlth & Ed Unref 5.000% 07/01/2039 | 415,000 | 429,733 | ||
Maine Hlth & Ed Unref 5.000% 07/01/2026 | 80,000 | 83,532 | ||
ME Hlth & Edu Preref 5.125% 07/01/2039 | 245,000 | 257,294 | ||
ME Hlth & Edu Unref 5.125% 07/01/2039 | 470,000 |
| 488,969 | |
| 5,180,303 | |||
Housing (3.6%) | ||||
Maine St Hsg Auth Mtg 4.000% 11/15/2035 | 435,000 | 443,931 | ||
ME Hsg Auth E 1 Ref 4.000% 11/15/2030 | 205,000 |
| 209,430 | |
| 653,361 | |||
Other Revenue (6.1%) | ||||
ME Govtl Facs Auth A 4.000% 10/01/2024 | 200,000 | 211,664 | ||
ME Mun Bd Bk A 4.000% 11/01/2038 | 125,000 | 129,174 | ||
ME Mun Bd Bk B Ref 5.000% 11/01/2025 | 125,000 | 141,511 | ||
ME Muni Bond Bk C 5.000% 11/01/2027 | 100,000 | 116,803 | ||
ME Bd Bk C Unref 4.900% 11/01/2024 | 5,000 | 5,001 | ||
*Pr Fin Comwlth Ser A 5.375% 06/01/2018 | 515,000 |
| 521,056 | |
| 1,125,209 | |||
Transportation (11.7%) | ||||
*Maine Mun Bd Bk 5.000% 09/01/2024 | 1,000,000 | 1,054,200 | ||
ME Muni Bond Bk A Ref 5.000% 09/01/2024 | 210,000 | 246,441 | ||
ME Tpk Auth Spl Obl 4.000% 07/01/2032 | 250,000 | 258,855 | ||
Portland Arpt Gen 5.250% 01/01/2035 | 250,000 | 260,075 | ||
Portland Arpt Rev Ref 5.000% 07/01/2022 | 100,000 | 111,753 | ||
Portland Arpt Rev Ref 5.000% 07/01/2023 | 100,000 | 113,124 | ||
Portland Arpt Rev Ref 5.000% 07/01/2024 | 100,000 |
| 112,219 | |
| 2,156,667 | |||
Utilities (2.7%) | ||||
*Kennebunk Lt/Pwr Dist 5.000% 08/01/2022 | 500,000 |
| 500,685 | |
| ||||
TOTAL MUNICIPAL BONDS (COST: $17,178,091) | $ | 17,584,191 | ||
| ||||
OTHER ASSETS LESS LIABILITIES (4.4%) |
| 804,039 | ||
| ||||
NET ASSETS (100.0%) | $ | 18,388,230 | ||
| ||||
* Indicates all or a portion of bonds are segregated by the custodian to cover when-issued or delayed-delivery purchases. | ||||
| ||||
| ||||
The accompanying notes are an integral part of these financial statements. |
NEW HAMPSHIRE MUNICIPAL FUND
PORTFOLIO MARKET SECTORS January 31, 2018 (unaudited)
General Obligation | 40.3% |
Health Care | 21.8% |
Education | 14.5% |
Housing | 8.3% |
Utilities | 6.1% |
Cash Equivalents and Other | 5.9% |
Transportation | 3.1% |
Other Revenue | 0.0% |
100.0% |
Market sectors are breakdowns of the Fund’s portfolio holdings into specific investment classes.
These percentages are based on net assets.
SCHEDULE OF INVESTMENTS January 31, 2018 (unaudited)
Principal | Fair | |||
| Amount |
| Value | |
MUNICIPAL BONDS (94.1%) | ||||
| ||||
Education (14.5%) | ||||
New Hampshire Hlth 5.000% 07/01/2027 | $ | 120,000 | $ | 139,067 |
NH H/E-C-Pinkerton Ac 4.625% 06/01/2030 | 175,000 | 179,405 | ||
NH Hlth & Edu 5.000% 01/01/2020 | 100,000 | 106,372 | ||
NH Hlth Univ Sys 5.250% 06/01/2039 | 100,000 | 104,993 | ||
| 529,837 | |||
General Obligation (40.3%) | ||||
Cheshire Co 5.000% 10/15/2030 | 125,000 | 148,780 | ||
Concord-Cap Impt 4.000% 01/15/2030 | 100,000 | 108,970 | ||
Dover 4.000% 06/15/2028 | 100,000 | 106,046 | ||
*Grafton Co-Ref 5.000% 07/01/2028 | 250,000 | 298,552 | ||
Nashua Ref 5.000% 10/01/2024 | 70,000 | 83,058 | ||
NH Mun Bd Bk- B 4.000% 08/15/2042 | 150,000 | 158,087 | ||
*NH Mun Bd Bk- D 4.000% 07/15/2025 | 175,000 | 181,256 | ||
Portsmouth-Cap Impt 4.000% 12/01/2030 | 100,000 | 104,961 | ||
Salem Sd 4.000 % 12/01/2027 | 250,000 | 274,000 | ||
| 1,463,710 | |||
Health Care (21.8%) | ||||
NH H/E-A-Wentworth Do 5.500% 01/01/2026 | 100,000 | 110,622 | ||
*NH H/E-Covenant-B 5.000% 07/01/2024 | 100,000 | 101,207 | ||
*NH H/E-Covenant-B 5.000% 07/01/2031 | 150,000 | 151,392 | ||
NH St Ed Facs Auth-A 5.000% 10/01/2026 | 100,000 | 110,247 | ||
NH Hlth & Ed 5.000% 07/01/2042 | 50,000 | 52,450 | ||
New Hampshire Hlth 5.000% 06/01/2020 | 125,000 | 130,559 | ||
New Hampshire Hlth 5.250% 06/01/2026 | 125,000 | 134,320 | ||
| 790,797 | |||
Housing (8.3%) | ||||
NH Hsg-Sfm-B-Non Amt 4.625% 07/01/2025 | 135,000 | 137,529 | ||
NH Hsg Fin-Sfm-C 4.875% 07/01/2028 | 55,000 | 57,336 | ||
NH Hsg Fin-Non Amt-A 5.200% 07/01/2031 | 100,000 | 106,022 | ||
| 300,887 | |||
Transportation (3.1%) | ||||
NH St Tpk Sys-Ser C 5.000% 08/01/2025 | 100,000 | 113,147 | ||
|
|
|
|
|
Utilities (6.1%) | ||||
NH Bus Fin Auth-Amt-A 5.000% 01/01/2029 | 100,000 | 110,998 | ||
NH Bus Fin Auth-Amt-A 5.000% 01/01/2030 | 100,000 |
| 110,987 | |
| 221,985 | |||
TOTAL MUNICIPAL BONDS (COST: $3,375,220) | $ | 3,420,363 | ||
| ||||
OTHER ASSETS LESS LIABILITIES (5.9%) |
| 212,737 | ||
NET ASSETS (100.0%) | $ | 3,633,100 | ||
*Indicates all or a portion of bonds are segregated by the custodian to cover when-issued or delayed delivery purchases. | ||||
| ||||
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Assets and Liabilities January 31, 2018 (unaudited)
New | |||||||||||||||
Kansas | Nebraska | Oklahoma | Maine | Hampshire | |||||||||||
Municipal | Municipal | Municipal | Municipal | Municipal | |||||||||||
Fund | Fund | Fund | Fund | Fund | |||||||||||
ASSETS | |||||||||||||||
Investments in securities, at cost | $ | 57,754,201 | $ | 45,037,901 | $ | 43,191,830 | $ | 17,178,091 | $ | 3,375,220 | |||||
Investments in securities, at fair value | $ | 59,456,038 | $ | 46,206,913 | $ | 44,184,671 | $ | 17,584,191 | $ | 3,420,363 | |||||
Cash | 1,080,922 | 618,680 | 420,289 | 680,955 | 196,892 | ||||||||||
Receivable for Fund shares sold | 0 | 1,834 | 8,433 | 0 | 0 | ||||||||||
Accrued interest receivable | 957,813 | 454,784 | 508,079 | 150,524 | 24,079 | ||||||||||
Receivable due from broker | 10,384 | 10,002 | 8,664 | 6,214 | 2,960 | ||||||||||
Prepaid expenses | 3,155 | 4,283 | 3,276 | 2,742 | 371 | ||||||||||
Total assets | $ | 61,508,312 | $ | 47,296,496 | $ | 45,133,412 | $ | 18,424,626 | $ | 3,644,665 | |||||
LIABILITIES | |||||||||||||||
Payable for Fund shares redeemed | $ | 2,504 | $ | 9,955 | $ | 41,647 | $ | 3,239 | $ | 20 | |||||
Dividends payable | 41,389 | 32,955 | 39,287 | 6,365 | 3,044 | ||||||||||
Trustees' fees payable | 437 | 339 | 325 | 132 | 27 | ||||||||||
Payable to affiliates |
| 60,869 |
| 48,286 |
| 44,366 |
| 22,402 |
| 6,280 | |||||
Accrued expenses | 11,233 | 8,212 | 8,223 | 4,258 | 2,194 | ||||||||||
Total liabilities | $ | 116,432 | $ | 99,747 | $ | 133,848 | $ | 36,396 | $ | 11,565 | |||||
NET ASSETS | $ | 61,391,880 | $ | 47,196,749 | $ | 44,999,564 | $ | 18,388,230 | $ | 3,633,100 | |||||
NET ASSETS ARE REPRESENTED BY: | |||||||||||||||
Capital stock outstanding, no par value, unlimited shares authorized | $ | 60,160,831 | $ | 46,780,759 | $ | 44,477,583 | $ | 18,363,377 | $ | 3,794,379 | |||||
Accumulated net realized gain (loss) on investments | (478,685) | (754,125) | (470,813) | (398,620) | (210,063) | ||||||||||
Accumulated undistributed net investment income (loss) | 7,897 | 1,103 | (47) | 17,373 | 3,641 | ||||||||||
Unrealized appreciation (depreciation) on investments |
| 1,701,837 |
| 1,169,012 |
| 992,841 |
| 406,100 |
| 45,143 | |||||
NET ASSETS | $ | 61,391,880 | $ | 47,196,749 | $ | 44,999,564 | $ | 18,388,230 | $ | 3,633,100 | |||||
Net Assets - Class A | $ | 60,966,363 | $ | 47,186,854 | $ | 44,914,692 | $ | 17,965,538 | $ | 3,633,100 | |||||
Net Assets - Class I^ | $ | 425,517 | $ | 9,895 | $ | 84,872 | $ | 422,692 | $ | N/A | |||||
Shares outstanding - Class A | 5,746,069 | 4,578,466 | 3,895,732 | 1,680,888 | 351,848 | ||||||||||
Shares outstanding - Class I^ | 40,077 | 960 | 7,358 | 39,541 | N/A | ||||||||||
Net asset value per share - Class A* | $ | 10.61 | $ | 10.31 | $ | 11.53 | $ | 10.69 | $ | 10.33 | |||||
Net asset value per share - Class I^ | $ | 10.62 | $ | 10.31 | $ | 11.53 | $ | 10.69 | $ | N/A | |||||
Public offering price - Class A (sales charge of 2.50%) | $ | 10.88 | $ | 10.57 | $ | 11.83 | $ | 10.96 | $ | 10.59 | |||||
| |||||||||||||||
* Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. | |||||||||||||||
| |||||||||||||||
^ Class I commenced operations on November 1, 2017 in all funds except New Hampshire Municipal Fund.
| |||||||||||||||
| |||||||||||||||
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Operations For the six months ended January 31, 2018 (unaudited)
New | |||||||||||||||
Kansas | Nebraska | Oklahoma | Maine | Hampshire | |||||||||||
Municipal | Municipal | Municipal | Municipal | Municipal | |||||||||||
Fund | Fund | Fund | Fund | Fund | |||||||||||
INVESTMENT INCOME | |||||||||||||||
Interest | $ | 1,116,216 | $ | 808,576 | $ | 751,006 | $ | 310,060 | $ | 73,547 | |||||
Total investment income | $ | 1,116,216 | $ | 808,576 | $ | 751,006 | $ | 310,060 | $ | 73,547 | |||||
EXPENSES | |||||||||||||||
Administrative service fees | $ | 58,702 | $ | 49,547 | $ | 48,138 | $ | 28,570 | $ | 15,443 | |||||
Investment Advisory Fees | 155,640 | 122,944 | 117,912 | 48,023 | 11,945 | ||||||||||
Audit fees | 6,852 | 5,411 | 5,191 | 2,114 | 526 | ||||||||||
Custodian fees | 3,075 | 2,328 | 2,421 | 1,089 | 532 | ||||||||||
Legal fees | 1,979 | 1,564 | 1,500 | 611 | 152 | ||||||||||
Professional Fees | 7,985 | 6,574 | 6,356 | 3,337 | 1,778 | ||||||||||
Reports to Shareholders Fee | 1,762 | 1,242 | 1,040 | 600 | 191 | ||||||||||
License, fees, and registrations | 1,950 | 7,671 | 2,335 | 1,378 | 607 | ||||||||||
Trustees’ fees | 2,474 | 1,954 | 1,874 | 763 | 190 | ||||||||||
Insurance expense | 1,044 | 825 | 791 | 322 | 80 | ||||||||||
Transfer Agent Fees | 38,866 | 31,019 | 29,811 | 13,038 | 2,867 | ||||||||||
Distribution (12b-1) fees | 77,659 | 61,466 | 58,949 | 23,865 | 5,972 | ||||||||||
Transfer agent out of Pocket | 2,453 | 1,966 | 403 | 1,746 | 615 | ||||||||||
Total expenses | $ | 360,441 | $ | 294,511 | $ | 276,721 | $ | 125,456 | $ | 40,898 | |||||
Less expenses waived or reimbursed |
| (55,210) |
| (53,228) |
| (45,384) |
| (31,276) |
| (17,392) | |||||
Total net expenses | $ | 305,231 | $ | 241,283 | $ | 231,337 | $ | 94,180 | $ | 23,506 | |||||
|
|
|
|
|
|
|
|
|
| ||||||
NET INVESTMENT INCOME (LOSS) | $ | 810,985 | $ | 567,293 | $ | 519,669 | $ | 215,880 | $ | 50,041 | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | |||||||||||||||
Net realized gain (loss) from investment transactions | $ | (1,447) | $ | (651) | $ | (26,012) | $ | (8,157) | $ | 54,697 | |||||
Net change in unrealized appreciation (depreciation) on investments |
| (1,005,598) |
| (685,935) |
| (789,341) |
| (333,524) |
| (135,855) | |||||
Net realized and unrealized gain (loss) on investments | $ | (1,007,045) | $ | (686,586) | $ | (815,353) | $ | (341,681) | $ | (81,158) | |||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (196,060) | $ | (119,293) | $ | (295,684) | $ | (125,801) | $ | (31,117) | |||||
|
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|
|
| |||||||||||||||
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Changes in Net Assets For the six months ended January 31, 2018 (unaudited)
New | |||||||||||||||
Kansas | Nebraska | Oklahoma | Maine | Hampshire | |||||||||||
Municipal | Municipal | Municipal | Municipal | Municipal | |||||||||||
Fund | Fund | Fund | Fund | Fund | |||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||||||
Net investment income (loss) | $ | 810,985 | $ | 567,293 | $ | 519,669 | $ | 215,880 | $ | 50,041 | |||||
Net realized gain (loss) from investment transactions |
| (1,447) |
| (651) |
| (26,012) |
| (8,157) |
| 54,697 | |||||
Net change in unrealized appreciation (depreciation) on investments |
| (1,005,598) |
| (685,935) |
| (789,341) |
| (333,524) |
| (135,855) | |||||
Net increase (decrease) in net assets resulting from operations | $ | (196,060) | $ | (119,293) | $ | (295,684) | $ | (125,801) | $ | (31,117) | |||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | |||||||||||||||
Net investment income - Class A | $ | (808,554) | $ | (567,233) | $ | (519,571) | $ | (213,513) | $ | (49,821) | |||||
Net investment income - Class I* | (1,852) | (65) | (88) | (1,480) | N/A | ||||||||||
Total distributions | $ | (810,406) | $ | (567,298) | $ | (519,659) | $ | (214,993) | $ | (49,821) | |||||
CAPITAL SHARE TRANSACTIONS | |||||||||||||||
Proceeds from sale of shares - Class A | $ | 3,461,841 | $ | 900,443 | $ | 1,397,249 | $ | 501,208 | $ | 24,521 | |||||
Proceeds from sale of shares - Class I* | 429,623 | 10,000 | 85,370 | 427,786 | N/A | ||||||||||
Proceeds from reinvested dividends - Class A | 572,183 | 383,050 | 305,295 | 175,829 | 28,240 | ||||||||||
Proceeds from reinvested dividends - Class I* | 1,781 | 0 | 0 | 1,233 | N/A | ||||||||||
Cost of shares redeemed - Class A | (3,841,134) | (3,504,826) | (3,347,042) | (2,188,450) | (2,325,611) | ||||||||||
Cost of shares redeemed - Class I* | (1,230) | 0 | 0 | (41) | N/A | ||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | $ | 623,064 | $ | (2,211,333) | $ | (1,559,128) | $ | (1,082,435) | $ | (2,272,850) | |||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | $ | (383,402) | $ | (2,897,924) | $ | (2,374,471) | $ | (1,423,229) | $ | (2,353,788) | |||||
NET ASSETS, BEGINNING OF PERIOD | $ | 61,775,282 | $ | 50,094,673 | $ | 47,374,035 | $ | 19,811,459 | $ | 5,986,888 | |||||
NET ASSETS, END OF PERIOD | $ | 61,391,880 | $ | 47,196,749 | $ | 44,999,564 | $ | 18,388,230 | $ | 3,633,100 | |||||
Accumulated undistributed net investment income (loss) | $ | 7,897 | $ | 1,103 | $ | (47) | $ | 17,373 | $ | 3,641 | |||||
|
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*Class I commenced operations on November 1, 2017 in all funds except New Hampshire Municipal Fund.
| |||||||||||||||
| |||||||||||||||
The accompanying notes are an integral part of these financial statements. |
FINANCIAL STATEMENTS
Statements of Changes in Net Assets For the year ended July 31, 2017
New | |||||||||||||||
Kansas | Nebraska | Oklahoma | Maine | Hampshire | |||||||||||
Municipal | Municipal | Municipal | Municipal | Municipal | |||||||||||
Fund | Fund | Fund | Fund | Fund | |||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||||||
Net investment income (loss) | $ | 1,681,751 | $ | 1,167,452 | $ | 1,073,667 | $ | 467,841 | $ | 134,011 | |||||
Net realized gain (loss) from investment transactions |
| (253,811) |
| (492,161) |
| (87,991) |
| (390,463) |
| (249,029) | |||||
Net change in unrealized appreciation (depreciation) on investments |
| (1,626,406) |
| (1,124,529) |
| (1,368,876) |
| (401,692) |
| (72,824) | |||||
Net increase (decrease) in net assets resulting from operations | $ | (198,466) | $ | (449,238) | $ | (383,200) | $ | (324,314) | $ | (187,842) | |||||
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | |||||||||||||||
Net investment income – Class A | $ | (1,680,455) | $ | (1,167,219) | $ | (1,073,720) | $ | (466,098) | $ | (133,449) | |||||
Total distributions | $ | (1,680,455) | $ | (1,167,219) | $ | (1,073,720) | $ | (466,098) | $ | (133,449) | |||||
| |||||||||||||||
CAPITAL SHARE TRANSACTIONS | |||||||||||||||
Proceeds from sale of shares – Class A | $ | 6,369,077 | $ | 9,282,002 | $ | 9,051,600 | $ | 3,536,640 | $ | 694,646 | |||||
Proceeds from reinvested dividends – Class A | 1,186,586 | 800,377 | 673,134 | 371,287 | 88,683 | ||||||||||
Cost of shares redeemed – Class A | (4,390,351) | (4,588,291) | (7,611,812) | (3,519,043) | (1,229,478) | ||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | $ | 3,165,312 | $ | 5,494,088 | $ | 2,112,922 | $ | 388,884 | $ | (446,149) | |||||
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TOTAL INCREASE (DECREASE) IN NET ASSETS | $ | 1,286,391 | $ | 3,877,631 | $ | 656,002 | $ | (401,528) | $ | (767,440) | |||||
NET ASSETS, BEGINNING OF PERIOD | $ | 60,488,891 | $ | 46,217,042 | $ | 46,718,033 | $ | 20,212,987 | $ | 6,754,328 | |||||
NET ASSETS, END OF PERIOD | $ | 61,775,282 | $ | 50,094,673 | $ | 47,374,035 | $ | 19,811,459 | $ | 5,986,888 | |||||
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Accumulated undistributed net investment income (loss) | $ | 7,322 | $ | 1,109 | $ | (53) | $ | 16,517 | $ | 3,421 | |||||
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The accompanying notes are an integral part of these financial statements. |
NOTES TO FINANCIAL STATEMENTS (unaudited)
NOTE 1: Organization
Viking Mutual Funds (the “Trust”) was organized as a Massachusetts business trust on August 10, 1990 and commenced operations on November 15, 1990. The Trust is registered under the Investment Company Act of 1940 as an open-end management investment company and consists of seven series (the “Funds”).
The Kansas Municipal Fund (“KS Muni Fund”), Nebraska Municipal Fund (“NE Muni Fund”), and Oklahoma Municipal Fund (“OK Muni Fund”), each a non-diversified Fund, seek the highest level of current income that is exempt from both federal income tax and each Fund’s respective state income tax as is consistent with preservation of capital. The Maine Municipal Fund (“ME Muni Fund”) and New Hampshire Municipal Fund (“NH Muni Fund”), each a non-diversified Fund, seek the highest level of current income that is exempt from both federal income tax and each Fund’s respective state income tax (interest and dividend tax with respect to New Hampshire) without assuming undue risk.
On May 18, 2017, the Board of Trustees approved the reorganization of each series of the Integrity Managed Portfolios (Kansas Municipal Fund, Maine Municipal Fund, Nebraska Municipal Fund, New Hampshire Municipal Fund, and Oklahoma Municipal Fund) into the corresponding series of Viking Mutual Funds and the addition of I shares to each corresponding series. The reorganization was also approved by each Fund’s shareholders at a special meeting held on September 21, 2017. The reorganization occurred at the close of business on October 31, 2017.
Each Fund in the Trust currently offers both Class A and Class I shares. Class A shares are sold with an initial sales charge of 2.50% and a distribution fee of up to 0.25% on an annual basis. Class I shares are sold without sales charge or distribution fee. The two classes of shares represent interest in each Fund’s same portfolio of investments, have the same rights, and are generally identical in all respects except that each class bears its separate distribution and certain other class expenses and has exclusive voting rights with respect to any matter on which a separate vote of any class is required.
Each Fund is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services – Investment Companies.
NOTE 2: Summary of Significant Accounting Policies
Investment security valuation—Securities for which quotations are not readily available are valued using a matrix system at fair value as determined by the Funds’ administrative services agent, Integrity Fund Services, LLC (“Integrity Fund Services” or “IFS”). The matrix system has been developed based on procedures approved by the Board of Trustees and includes consideration of the following: yields or prices of municipal bonds of comparable quality; type of issue, coupon, maturity, and rating; indications as to value from dealers; indications as to value from municipal bond market activity; and general market conditions. Because the market value of securities can only be established by agreement between parties in a sales transaction, and because of the uncertainty inherent in the valuation process, the fair values as determined may differ from the values that would have been used had a ready market for the securities existed. Refer to Note 3 for further disclosures related to the inputs used to value the Funds’ investments. Shares of a registered investment company, including money market funds that are not traded on an exchange are valued at the investment company’s net asset value per share.
When-issued securities—The Funds may purchase securities on a when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The values of the securities purchased on a when-issued basis are identified as such in the Funds’ Schedule of Investments. With respect to purchase commitments, the Fund identifies securities as segregated in its custodial records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities, if the counterparty does not perform under the contract’s terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Contingent deferred sales charge—In the case of investments into the Funds of $500,000 or more, a 1.00% contingent deferred sales charge (“CDSC”) may be assessed on shares redeemed within 24 months of purchase (excluding shares purchased with reinvested dividends and/or distributions).
Federal and state income taxes—Each Fund is a separate taxpayer for federal income tax purposes. Each Fund’s policy is to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of its net investment income and any net realized gain on investments to its shareholders; therefore, no provision for income taxes is required.
As of and during the year ended July 29, 2017, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the year, the Funds did not incur any interest or penalties.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities. Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Premiums and discounts—Premiums and discounts on municipal securities are accreted and amortized using the effective yield method over the lives of the respective securities.
Security transactions, investment income, expenses and distributions—Income and expenses are recorded on an accrual basis. Investment transactions are accounted for on the trade date. Realized gains and losses are reported on the specific identification basis. Interest income and estimated expenses are accrued daily. The Funds declare dividends from net investment income daily and pay such dividends monthly. Capital gains, when available, are distributed at least annually. Dividends are reinvested in additional shares of the Funds at net asset value or paid in cash. Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with federal income tax regulations and may differ from net investment income and realized gains determined in accordance with accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatment for market discount and capital loss carryforwards. In addition, other amounts have been reclassified within the composition of net assets to more appropriately conform financial accounting to tax basis treatment.
Use of estimates—The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Common expenses—Common expenses of the Trust are allocated among the Funds within the Trust based on relative net assets of each Fund or the nature of the services performed and the relative applicability to each Fund.
Organizational expenses—All organizational and offering expenses of the Trust were borne by the Investment Advisor and are not subject to future recoupment. As a result, organizational and offering expenses are not reflected in the Statements of Assets and Liabilities.
NOTE 3: Fair Value Measurements
Various inputs are used in determining the value of the Funds’ investments. These inputs are summarized in three broad levels: Level 1 inputs are based on quoted prices in active markets for identical securities. Level 2 inputs are based on significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 inputs are based on significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The following is a summary of the inputs used to value the Funds’ investments as of January 31, 2018:
Level 1 | Level 2 | Level 3 | Total | |||||||||||
KS Muni Fund | Municipal Bonds | $ | 0 | $ | 59,456,038 | $ | 0 | $ | 59,456,038 | |||||
Total | $ | 0 | $ | 59,456,038 | $ | 0 | $ | 59,456,038 | ||||||
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NE Muni Fund | Municipal Bonds | $ | 0 | $ | 46,206,913 | $ | 0 | $ | 46,206,913 | |||||
Total | $ | 0 | $ | 46,206,913 | $ | 0 | $ | 46,206,913 | ||||||
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OK Muni Fund | Municipal Bonds | $ | 0 | $ | 44,184,671 | $ | 0 | $ | 44,184,671 | |||||
Total | $ | 0 | $ | 44,184,671 | $ | 0 | $ | 44,184,671 | ||||||
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ME Muni Fund | Municipal Bonds | $ | 0 | $ | 17,584,191 | $ | 0 | $ | 17,584,191 | |||||
Total | $ | 0 | $ | 17,584,191 | $ | 0 | $ | 17,584,191 | ||||||
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NH Muni Fund | Municipal Bonds | $ | 0 | $ | 3,420,363 | $ | 0 | $ | 3,420,363 | |||||
Total | $ | 0 | $ | 3,420,363 | $ | 0 | $ | 3,420,363 | ||||||
See Schedule of Investments to view by type of obligation. The Funds did not hold any Level 3 assets during the six months ended January 31, 2018. There were no transfers into or out of Level 1 or Level 2 during the six months ended January 31, 2018. The Funds consider transfers into or out of Level 1 and Level 2 as of the end of the reporting period. The Funds did not hold any derivative instruments at any time during the six months ended January 31, 2018.
NOTE 4: Investment Transactions
Purchases and sales of investment securities (excluding short-term securities) for the six months ended January 31, 2018, were as follows:
KS Muni | NE Muni | OK Muni | ME Muni | NH Muni | ||||||||||
Fund | Fund | Fund | Fund | Fund | ||||||||||
Purchases | $ | 5,753,850 | $ | 860,685 | $ | 1,988,306 | $ | 566,165 | $ | 400,347 | ||||
Sales | $ | 4,726,681 | $ | 2,106,735 | $ | 1,280,864 | $ | 1,828,884 | $ | 2,580,378 |
NOTE 5: Capital Share Transactions
Transactions in capital shares were as follows:
Six Months Ended 1/31/18: | ||||||||||
| KS Muni | NE Muni | OK Muni | ME Muni | NH Muni | |||||
Class A | Fund | Fund | Fund | Fund | Fund | |||||
Shares sold | 322,087 | 86,229 | 119,284 | 46,179 | 2,329 | |||||
Shares issued from reinvestments | 53,373 | 36,770 | 26,158 | 16,259 | 2,692 | |||||
Shares redeemed | (357,406) | (335,109) | (286,078) | (201,666) | (220,401) | |||||
Net increase (decrease) | 18,054 | (212,110) | (140,636) | (139,228) | (215,380) | |||||
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Class I* | ||||||||||
Shares sold | 40,025 | 960 | 7,358 | 39,430 | ||||||
Shares issued from reinvestments | 167 | 0 | 0 | 115 | ||||||
Shares redeemed | (115) | 0 | 0 | (4) | ||||||
Net increase (decrease) | 40,077 | 960 | 7,358 | 39,541 | ||||||
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Year Ended 7/31/17: | ||||||||||
| KS Muni | NE Muni | OK Muni | ME Muni | NH Muni | |||||
Class A | Fund | Fund | Fund | Fund | Fund | |||||
Shares sold | 588,008 | 884,199 | 769,237 | 323,622 | 65,738 | |||||
Shares issued from reinvestments | 110,018 | 76,788 | 57,561 | 34,094 | 8,390 | |||||
Shares redeemed | (406,064) | (441,003) | (651,227) | (324,669) | (116,826) | |||||
Net increase (decrease) | 291,962 | 519,984 | 175,571 | 33,047 | (42,698) | |||||
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*Class I commenced operations on November 1, 2017 in all funds except New Hampshire Municipal Fund. |
NOTE 6: Income Tax Information
At July 31, 2017, the net unrealized appreciation (depreciation) based on the cost of investments for federal income tax purposes was as follows:
KS Muni | NE Muni | OK Muni | ME Muni | NH Muni | ||||||||||
Fund | Fund | Fund | Fund | Fund | ||||||||||
Investments at cost | $ | 56,939,675 | $ | 46,518,812 | $ | 42,719,450 | $ | 18,522,344 | $ | 5,519,398 | ||||
Unrealized appreciation | $ | 2,816,494 | $ | 1,932,194 | $ | 1,884,294 | $ | 759,739 | $ | 186,290 | ||||
Unrealized depreciation | (101,742) | (76,140) | (102,165) | (3,629) | (1,871) | |||||||||
Net unrealized appreciation* | $ | 2,714,752 | $ | 1,856,054 | $ | 1,782,129 | $ | 756,110 | $ | 184,419 | ||||
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*Differences between financial reporting-basis and tax-basis are due to differing treatment of market discount. |
The tax character of distributions accrued were as follows:
Year Ended 7/31/17: | KS Muni Fund | NE Muni Fund | OK Muni Fund | ME Muni Fund | NH Muni Fund | |||||||||
Tax-exempt income | $ | 1,680,455 | $ | 1,167,219 | $ | 1,073,720 | $ | 466,068 | $ | 133,449 | ||||
Capital gains | $ | 0 |
| $ | 0 |
| $ | 0 |
| $ | 30 |
| $ | 0 |
Year Ended 7/29/16: | KS Muni Fund | NE Muni Fund | OK Muni Fund | ME Muni Fund | NH Muni Fund | |||||||||
Tax-exempt income | $ | 1,641,358 | $ | 1,108,961 | $ | 1,051,277 | $ | 436,128 | $ | 112,772 | ||||
Capital gains | $ | 0 |
| $ | 0 |
| $ | 0 |
| $ | 8,442 |
| $ | 0 |
As of July 31, 2017, the components of accumulated earnings/(deficit) on a tax basis were as follows:
KS Muni | NE Muni | OK Muni | ME Muni | NH Muni | ||||||||||
Fund | Fund | Fund | Fund | Fund | ||||||||||
Undistributed tax-exempt income | $ | 41,795 | $ | 30,166 | $ | 32,774 | $ | 6,522 | $ | 3,324 | ||||
Accumulated capital and other losses | (223,429) | (253,939) | (357,662) | 0 | (18,989) | |||||||||
Post-October losses deferred |
| (253,811) |
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| (499,534) |
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| (87,138) |
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| (390,463) |
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| (245,770) |
Unrealized appreciation/(depreciation)* | 2,714,752 | 1,856,054 | 1,782,129 | 756,110 | 184,419 | |||||||||
Total accumulated earnings/(deficit) | $ | 2,279,307 | $ | 1,132,747 | $ | 1,370,103 | $ | 372,169 | $ | (77,016) | ||||
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*Differences between financial reporting-basis and tax-basis are due to differing treatment of market discount. |
Under the Regulated Investment Company Modernization Act of 2010 (“Act”), funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period of time. The short-term and long-term character of such losses are retained rather than being treated as short-term as under previous law. Pre-enactment losses are eligible to be carried forward for a maximum period of eight years. Pursuant to the Act, post-enactment capital losses must be utilized before pre-enactment capital losses. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. The Funds’ capital loss carryforward amounts as of July 31, 2017 are as follows:
|
| KS Muni |
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| NE Muni |
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| OK Muni |
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| NH Muni |
Expires in 2018 | $ | - |
| $ | - |
| $ | 260,308 |
| $ | - |
Non-expiring S-T losses |
| 133,526 |
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| 177,427 |
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| 53,381 |
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| 18,990 |
Non-expiring L-T losses |
| 89,901 |
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| 76,513 |
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| 43,974 |
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| - |
Total | $ | 223,427 |
| $ | 253,940 |
| $ | 357,663 |
| $ | 18,990 |
For the year ended July 31, 2017, NE Muni Fund utilized capital loss carryforwards of $7,702. For the year ended July 31, 2017, NE Muni Fund and NH Muni Fund reclassified accumulated net investment income of $329 and $12, respectively, to accumulated realized gain due to market discount on bonds sold. ME Muni Fund reclassified realized gain of $30 to accumulated net investment income due to distribution adjustment.
NOTE 7: Investment Advisory Fees and Other Transactions with Affiliates
Viking Fund Management (“VFM”), the Funds’ investment adviser; Integrity Funds Distributor, LLC (“Integrity Funds Distributor” or “IFD”), the Funds’ underwriter and distributor; and IFS, the Funds’ transfer, accounting, and administrative services agent; are subsidiaries of Corridor Investors, LLC (“Corridor Investors” or “Corridor”), the Funds’ sponsor. A Trustee of the Funds is also a Governor of Corridor.
VFM provides investment advisory and management services to the Funds. The Investment Advisory Agreement (the “Advisory Agreement”) provides for fees to be computed at an annual rate of 0.50% of each Fund’s average daily net assets. VFM has contractually agreed to waive its management fee and to reimburse expenses for the Funds, other than extraordinary or non-recurring expenses and acquired fund fees and expenses, until November 29, 2018 so that the net annual operating expenses do not exceed 0.98% for A shares and 0.73% for I shares. After November 29, 2018, the expense limitation may be terminated or revised. VFM and affiliated service providers may also voluntarily waive fees or reimburse expenses not required under the advisory or other contracts from time to time. There are no recoupment provisions in place for waived/reimbursed fees. An expense limitation lowers expense ratios and increases returns to investors. Certain Officers of the Funds are also Officers and Governors of VFM.
Six Months Ended 1/31/18 | Payable at 1/31/18 | |||||||
Advisory Fees* | Advisory Fees Waived | Advisory Fees* | ||||||
KS Muni Fund | $ | 100,430 | $ | 55,210 | $ | 27,804 | ||
NE Muni Fund | $ | 69,716 | $ | 53,228 | $ | 21,608 | ||
OK Muni Fund | $ | 72,528 | $ | 45,384 | $ | 20,715 | ||
ME Muni Fund | $ | 16,747 | $ | 31,276 | $ | 8,389 | ||
NH Muni Fund | $ | 0 | $ | 11,945^ | $ | 0+ | ||
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* After waivers and reimbursements, if any. | ||||||||
^ Advisor reimbursed $5,447. | ||||||||
+ Advisor waived $1,692 in advisory fees payable and reimbursed $1,267 of fees payable to affiliates and other accrued expenses at year end. |
IFD serves as the principal underwriter and distributor for the Funds and receives sales charges deducted from Fund share sales proceeds and CDSC from applicable Fund share redemptions. Also, the Funds have adopted a distribution plan for each class of shares as allowed by Rule 12b-1 of the 1940 Act. Distribution plans permit the Funds to reimburse their principal underwriter for costs related to selling shares of the Funds and for various other services. These costs, which consist primarily of commissions and service fees to broker-dealers who sell shares of the Funds, are paid by shareholders through expenses called “Distribution Plan expenses.” The Funds currently pay an annual distribution fee of up to 0.25% of the average daily net assets. Certain Officers of the Funds are also Officers and Governors of IFD.
Six Months Ended 1/31/18 |
| Payable at 1/31/18 | ||||||||||||||
Sales | Distribution | Distribution |
| Sales | Distribution | |||||||||||
Charges | CDSC | Fees* | Fees Waived |
| Charges | CDSC | Fees* | |||||||||
KS Muni Fund - A | $ | 42,621 | $ | 0 | $ | 77,659 | $ | 0 |
| $ | 0 | $ | 0 | $ | 13,805 | |
NE Muni Fund - A | $ | 8,756 | $ | 0 | $ | 61,466 | $ | 0 |
| $ | 0 | $ | 0 | $ | 10,802 | |
OK Muni Fund - A | $ | 14,554 | $ | 0 | $ | 58,949 | $ | 0 |
| $ | 0 | $ | 0 | $ | 10,354 | |
ME Muni Fund - A | $ | 9,090 | $ | 0 | $ | 23,865 | $ | 0 |
| $ | 0 | $ | 0 | $ | 4,098 | |
NH Muni Fund - A | $ | 629 | $ | 14,638 | $ | 5,972 | $ | 0 |
| $ | 0 | $ | 0 | $ | 846 | |
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* After waivers. |
IFS acts as the Funds’ transfer agent for a monthly variable fee equal to 0.14% of the Funds’ average daily net assets on an annual basis for the Funds’ first $200 million and at a lower rate on the average daily net assets in excess of $200 million plus reimbursement of out-of-pocket expenses and sub-transfer agent out-of-pocket expenses. Sub-transfer agent out-of-pocket expenses are included in the transfer agent fees below and in the transfer agent out-of-pocket balance on the Statements of Operations. IFS also acts as the Funds’ administrative services agent for a monthly fee equal to the sum of a fixed fee of $2,000 and a variable fee equal to 0.14% of the Funds’ average daily net assets on an annual basis for the Funds’ first $200 million and at a lower rate on the average daily net assets in excess of $200 million plus reimbursement of out-of-pocket expenses. Certain Officers of the Funds are also Officers and Governors of IFS.
Six Months Ended 1/31/18 |
| Payable at 1/31/18 | ||||||||||||||||||
Transfer Fees | Transfer | Admin. | Admin. |
| Transfer | Admin. | ||||||||||||||
| ||||||||||||||||||||
KS Muni Fund - A | $ | 41,319 | $ | 0 | $ | 58,702 | $ | 0 |
| $8,220 | $ | 11,040 | ||||||||
NE Muni Fund - A | $ | 32,985 | $ | 0 | $ | 49,547 | $ | 0 |
| $6,571 | $ | 9,305 | ||||||||
OK Muni Fund - A | $ | 30,214 | $ | 0 | $ | 48,138 | $ | 0 |
| $4,242 | $ | 9,055 | ||||||||
ME Muni Fund - A | $ | 14,784 | $ | 0 | $ | 28,570 | $ | 0 |
| $4,311 | $ | 5,604 | ||||||||
NH Muni Fund - A | $ | 3,482 | $ | 0 | $ | 15,443 | $ | 0 |
| $1,098 | $ | 2,644 | ||||||||
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* After waivers. | ||||||||||||||||||||
NOTE 8: Principal Risks
The Funds invest primarily in municipal securities from a specific state. The Funds may also invest in municipal securities of U.S. territories and possessions (such as Puerto Rico, the U.S. Virgin Islands, and Guam). Each Fund is therefore more susceptible to political, economic, legislative, or regulatory factors adversely affecting issuers of municipal securities in its specific state or U.S. territories and possessions.
Interest rate risk is the risk that bond prices will decline in value because of changes in interest rates. There is normally an inverse relationship between the fair value of securities sensitive to prevailing interest rates and actual changes in interest rates. The longer the average maturity of a Fund’s portfolio, the greater its interest rate risk.
KANSAS MUNICIPAL FUND CLASS A
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Six | |||||||||||||||||
Months | Year | Year | Year | Year | Year | ||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||
1/31/18+ | 7/31/17 | 7/29/16 | 7/31/15 | 7/31/14 | 7/31/13 | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.78 | $ | 11.13 | $ | 10.87 | $ | 10.85 | $ | 10.56 | $ | 11.12 | |||||
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Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.14 | $ | 0.30 | $ | 0.31 | $ | 0.31 | $ | 0.32 | $ | 0.30 | |||||
Net realized and unrealized gain (loss) on investments1 | (0.17) | (0.35) | 0.26 | 0.02 | 0.29 | (0.56) | |||||||||||
Total from investment operations | $ | (0.03) | $ | (0.05) | $ | 0.57 | $ | 0.33 | $ | 0.61 | $ | (0.26) | |||||
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Distributions from net investment income | $ | (0.14) | $ | (0.30) | $ | (0.31) | $ | (0.31) | $ | (0.32) | $ | (0.30) | |||||
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NET ASSET VALUE, END OF PERIOD | $ | 10.61 | $ | 10.78 | $ | 11.13 | $ | 10.87 | $ | 10.85 | $ | 10.56 | |||||
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Total Return (excludes any applicable sales charge) | (0.27%)# | (0.42%) | 5.30% | 3.03% | 5.81% | (2.37%) | |||||||||||
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RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $60,966 | $61,775 | $60,489 | $58,578 | $59,516 | $64,405 | |||||||||||
Ratio of expenses to average net assets after waivers2 | 0.98%^ | 0.98% | 0.98% | 0.98% | 1.01% | 1.08% | |||||||||||
Ratio of expenses to average net assets before waivers | 1.16%^ | 1.15% | 1.18% | 1.16% | 1.16% | 1.17% | |||||||||||
Ratio of net investment income to average net assets2 | 2.59%^ | 2.76% | 2.81% | 2.80% | 2.95% | 2.75% | |||||||||||
Portfolio turnover rate | 7.92% | 6.85% | 12.10% | 10.87% | 6.63% | 13.40% |
1 | Net realized and unrealized gains (losses) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period. |
2 | Reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
^ | Annualized |
+ | Unaudited. |
# | Not Annualized. |
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Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions. | |
| |
The accompanying notes are an integral part of these financial statements. |
KANSAS MUNICIPAL FUND CLASS I
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Period | ||
From | ||
11/1/17* to | ||
1/31/18+ | ||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.74 |
| ||
Income (loss) from investment operations: | ||
Net investment income (loss) | $ | 0.08 |
Net realized and unrealized gain (loss) on investments1 | (0.12) | |
Total from investment operations | $ | (0.04) |
|
|
|
Distributions from net investment income | $ | (0.08) |
| ||
NET ASSET VALUE, END OF PERIOD | $ | 10.62 |
|
|
|
Total Return (excludes any applicable sales charge) | (0.41%)# | |
| ||
RATIOS/SUPPLEMENTAL DATA | ||
Net assets, end of period (in thousands) | $426 | |
Ratio of expenses to average net assets after waivers2 | 0.73%^ | |
Ratio of expenses to average net assets before waivers | 0.92%^ | |
Ratio of net investment income to average net assets2 | 11.11%^ | |
Portfolio turnover rate | 7.92% |
1 | Net realized and unrealized gains (losses) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period. |
2 | Reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
^ | Annualized |
+ | Unaudited. |
# | Not Annualized. |
* | Commenced operations. |
| |
| |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions. | |
| |
The accompanying notes are an integral part of these financial statements. |
NEBRASKA MUNICIPAL FUND CLASS A
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Six |
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|
|
| |||||||||||||||||
| Months |
| Year |
| Year |
| Year |
| Year |
| Year | |||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||
1/31/18+ | 7/31/17 | 7/29/16 | 7/31/15 | 7/31/14 | 7/31/13 | |||||||||||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.46 | $ | 10.82 | $ | 10.48 | $ | 10.40 | $ | 9.99 | $ | 10.69 | ||||||||||||||
| ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | $ | 0.12 | $ | 0.25 | $ | 0.27 | $ | 0.29 | $ | 0.29 | $ | 0.29 | ||||||||||||||
Net realized and unrealized gain (loss) on investments1 | (0.15) | (0.36) | 0.34 | 0.08 | 0.41 | (0.70) | ||||||||||||||||||||
Total from investment operations | $ | (0.03) | $ | (0.11) | $ | 0.61 | $ | 0.37 | $ | 0.70 | $ | (0.41) | ||||||||||||||
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|
| ||||||||||||||
Distributions from net investment income | $ | (0.12) | $ | (0.25) | $ | (0.27) | $ | (0.29) | $ | (0.29) | $ | (0.29) | ||||||||||||||
| ||||||||||||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 10.31 | $ | 10.46 | $ | 10.82 | $ | 10.48 | $ | 10.40 | $ | 9.99 | ||||||||||||||
| ||||||||||||||||||||||||||
Total Return (excludes any applicable sales charge) | (0.28%)# | (1.01%) | 5.94% | 3.54% | 7.14% | (3.96%) |
| |||||||||||||||||||
|
| |||||||||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
| |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $47,187 | $50,095 | $46,217 | $41,189 | $39,734 | $41,633 |
| |||||||||||||||||||
Ratio of expenses to average net assets after waivers2 | 0.98%^ | 0.98% | 0.98% | 0.98% | 1.01% | 1.08% |
| |||||||||||||||||||
Ratio of expenses to average net assets before waivers | 1.20%^ | 1.18% | 1.20% | 1.19% | 1.20% | 1.20% |
| |||||||||||||||||||
Ratio of net investment income to average net assets2 | 2.31%^ | 2.35% | 2.58% | 2.72% | 2.89% | 2.72% |
| |||||||||||||||||||
Portfolio turnover rate | 1.82% | 22.92% | 7.47% | 11.76% | 3.88% | 23.65% |
| |||||||||||||||||||
1 | Net realized and unrealized gains (losses) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period. |
2 | Reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
^ | Annualized |
+ | Unaudited. |
# | Not Annualized. |
| |
| |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions. | |
| |
The accompanying notes are an integral part of these financial statements. |
NEBRASKA MUNICIPAL FUND CLASS I
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Period | ||
From | ||
11/1/17* to | ||
1/31/18+ | ||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.42 |
| ||
Income (loss) from investment operations: | ||
Net investment income (loss) | $ | 0.07 |
Net realized and unrealized gain (loss) on investments1 | (0.11) | |
Total from investment operations | $ | (0.04) |
|
|
|
Distributions from net investment income | $ | (0.07) |
| ||
NET ASSET VALUE, END OF PERIOD | $ | 10.31 |
|
|
|
Total Return (excludes any applicable sales charge) | (0.51%)# | |
| ||
RATIOS/SUPPLEMENTAL DATA | ||
Net assets, end of period (in thousands) | $10 | |
Ratio of expenses to average net assets after waivers2 | 0.73%^ | |
Ratio of expenses to average net assets before waivers | 0.98%^ | |
Ratio of net investment income to average net assets2 | 6.06%^ | |
Portfolio turnover rate | 1.82% |
1 | Net realized and unrealized gains (losses) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period. |
2 | Reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
^ | Annualized |
+ | Unaudited. |
# | Not Annualized. |
* | Commenced operations. |
| |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions. | |
| |
The accompanying notes are an integral part of these financial statements. |
OKLAHOMA MUNICIPAL FUND CLASS A
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Six | |||||||||||||||||
Months | Year | Year | Year | Year | Year | ||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||
1/31/18+ | 7/31/17 | 7/29/16 | 7/31/15 | 7/31/14 | 7/31/13 | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 11.74 | $ | 12.10 | $ | 11.64 | $ | 11.60 | $ | 11.20 | $ | 11.93 | |||||
| |||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.13 | $ | 0.27 | $ | 0.28 | $ | 0.29 | $ | 0.31 | $ | 0.32 | |||||
Net realized and unrealized gain (loss) on investments1 | (0.21) | (0.36) | 0.46 | 0.04 | 0.40 | (0.73) | |||||||||||
Total from investment operations |
| (0.08) | $ | (0.09) | $ | 0.74 | $ | 0.33 | $ | 0.71 | $ | (0.41) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Distributions from net investment income | $ | (0.13) | $ | (0.27) | $ | (0.28) | $ | (0.29) | $ | (0.31) | $ | (0.32) | |||||
| |||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 11.53 | $ | 11.74 | $ | 12.10 | $ | 11.64 | $ | 11.60 | $ | 11.20 | |||||
| |||||||||||||||||
Total Return (excludes any applicable sales charge) | (0.69%)# | (0.71%) | 6.47% | 2.82% | 6.42% | (3.54%) | |||||||||||
| |||||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $44,915 | $47,374 | $46,718 | $42,427 | $38,795 | $41,551 | |||||||||||
Ratio of expenses to average net assets after waivers2 | 0.98%^ | 0.98% | 0.98% | 0.98% | 1.01% | 1.08% | |||||||||||
Ratio of expenses to average net assets before waivers | 1.17%^ | 1.16% | 1.19% | 1.18% | 1.19% | 1.18% | |||||||||||
Ratio of net investment income to average net assets2 | 2.20%^ | 2.30% | 2.40% | 2.44% | 2.72% | 2.70% | |||||||||||
Portfolio turnover rate | 2.87% | 5.30% | 10.58% | 14.53% | 1.41% | 9.54% |
1 | Net realized and unrealized gains (losses) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period. |
2 | Reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
^ | Annualized. |
+ | Unaudited. |
# | Not Annualized. |
| |
| |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions. | |
| |
The accompanying notes are an integral part of these financial statements. |
OKLAHOMA MUNICIPAL FUND CLASS I
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Period | |||
From | |||
11/1/17* to | |||
1/31/18+ | |||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 11.69 | |
| |||
Income (loss) from investment operations: | |||
Net investment income (loss) | $ | 0.07 | |
Net realized and unrealized gain (loss) on investments1 | (0.16) | ||
Total from investment operations | $ | (0.09) | |
|
|
| |
Distributions from net investment income | $ | (0.07) | |
| |||
NET ASSET VALUE, END OF PERIOD | $ | 11.53 | |
|
|
| |
Total Return (excludes any applicable sales charge) | (0.76%)# | ||
| |||
RATIOS/SUPPLEMENTAL DATA | |||
Net assets, end of period (in thousands) | $85 | ||
Ratio of expenses to average net assets after waivers2 | 0.73%^ | ||
Ratio of expenses to average net assets before waivers | 0.94%^ | ||
Ratio of net investment income to average net assets2 | 39.44%^ | ||
Portfolio turnover rate | 2.87% |
1 | Net realized and unrealized gains (losses) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period. |
2 | Reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
^ | Annualized |
+ | Unaudited. |
# | Not Annualized. |
* | Commenced operations. |
|
|
| |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions. | |
| |
The accompanying notes are an integral part of these financial statements. |
MAINE MUNICIPAL FUND CLASS A
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Six | |||||||||||||||||
Months | Year | Year | Year | Year | Year | ||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||
1/31/18+ | 7/31/17 | 7/29/16 | 7/31/15 | 7/31/14 | 7/31/13 | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.88 | $ | 11.31 | $ | 10.99 | $ | 11.00 | $ | 10.79 | $ | 11.36 | |||||
| |||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.12 | $ | 0.25 | $ | 0.27 | $ | 0.27 | $ | 0.29 | $ | 0.31 | |||||
Net realized and unrealized gain (loss) on investments1 | (0.19) | (0.43) | 0.33 | (0.01) | 0.21 | (0.57) | |||||||||||
Total from investment operations | $ | (0.07) | $ | (0.18) | $ | 0.60 | $ | 0.26 | $ | 0.50 | $ | (0.26) | |||||
|
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|
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|
|
| |||||
Less Distributions: | |||||||||||||||||
Distributions from net investment income | $ | (0.12) | $ | (0.25) | $ | (0.27) | $ | (0.27) | $ | (0.29) | $ | (0.31) | |||||
Distributions from net realized gains | 0.00 | 0.00 | (0.01) | 0.00 | 0.00 | 0.00 | |||||||||||
Returns of Capital |
| 0.00 |
| 0.00 |
| 0.00 |
| 0.00 |
| 0.00 |
| 0.00 | |||||
Total distributions | $ | (0.12) | $ | (0.25) | $ | (0.28) | $ | (0.27) | $ | (0.29) | $ | (0.31) | |||||
| |||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 10.69 | $ | 10.88 | $ | 11.31 | $ | 10.99 | $ | 11.00 | $ | 10.79 | |||||
| |||||||||||||||||
Total Return (excludes any applicable sales charge) | (0.63%)# | (1.55%) | 5.44% | 2.37% | 4.72% | (2.37%) | |||||||||||
| |||||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $17,966 | $19,811 | $20,213 | $17,475 | $17,451 | $17,702 | |||||||||||
Ratio of expenses to average net assets after waivers2 | 0.98%^ | 0.98% | 0.98% | 0.98% | 1.01% | 1.08% | |||||||||||
Ratio of expenses to average net assets before waivers | 1.31%^ | 1.25% | 1.29% | 1.28% | 1.28% | 1.27% | |||||||||||
Ratio of net investment income to average net assets2 | 2.19%^ | 2.31% | 2.39% | 2.45% | 2.70% | 2.76% | |||||||||||
Portfolio turnover rate | 3.07% | 21.81% | 1.88% | 16.18% | 11.27% | 11.52% |
1 | Net realized and unrealized gains (losses) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period. |
2 | Reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
^ | Annualized |
+ | Unaudited. |
# | Not Annualized. |
|
|
| |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions. | |
| |
The accompanying notes are an integral part of these financial statements. |
MAINE MUNICIPAL FUND CLASS I
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Period | |||
From | |||
11/1/17* to | |||
1/31/18+ | |||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.84 | |
| |||
Income (loss) from investment operations: | |||
Net investment income (loss) | $ | 0.07 | |
Net realized and unrealized gain (loss) on investments1 | (0.15) | ||
Total from investment operations | $ | (0.08) | |
|
|
| |
Distributions from net investment income | $ | (0.07) | |
| |||
NET ASSET VALUE, END OF PERIOD | $ | 10.69 | |
|
|
| |
Total Return (excludes any applicable sales charge) | (0.77%)# | ||
| |||
RATIOS/SUPPLEMENTAL DATA | |||
Net assets, end of period (in thousands) | $423 | ||
Ratio of expenses to average net assets after waivers2 | 0.73%^ | ||
Ratio of expenses to average net assets before waivers | 1.10%^ | ||
Ratio of net investment income to average net assets2 | 11.21%^ | ||
Portfolio turnover rate | 3.07% |
1 | Net realized and unrealized gains (losses) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period. |
2 | Reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
^ | Annualized |
+ | Unaudited. |
# | Not Annualized. |
* | Commenced operations. |
| |
| |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions. | |
| |
The accompanying notes are an integral part of these financial statements. |
NEW HAMPSHIRE MUNICIPAL FUND CLASS A
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Year | Year | Year | Year | Year | Year | ||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||
1/31/18+ | 7/31/17 | 7/29/16 | 7/31/15 | 7/31/14 | 7/31/13 | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.55 | $ | 11.07 | $ | 10.76 | $ | 10.74 | $ | 10.55 | $ | 11.07 | |||||
| |||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.11 | $ | 0.22 | $ | 0.24 | $ | 0.24 | $ | 0.28 | $ | 0.28 | |||||
Net realized and unrealized gain (loss) on investments1 | (0.22) | (0.52) | 0.31 | 0.02 | 0.19 | (0.52) | |||||||||||
Total from investment operations | $ | (0.11) | $ | (0.30) | $ | 0.55 | $ | 0.26 | $ | 0.47 | $ | (0.24) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Distributions from net investment income | $ | (0.11) | $ | (0.22) | $ | (0.24) | $ | (0.24) | $ | (0.28) | $ | (0.28) | |||||
| |||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 10.33 | $ | 10.55 | $ | 11.07 | $ | 10.76 | $ | 10.74 | $ | 10.55 | |||||
| |||||||||||||||||
Total Return (excludes any applicable sales charge) | (1.04%)# | (2.73%) | 5.12% | 2.45% | 4.53% | (2.19%) | |||||||||||
| |||||||||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $3,633 | $5,987 | $6,754 | $5,164 | $4,684 | $5,173 | |||||||||||
Ratio of expenses to average net assets after waivers2 | 0.98%^ | 0.98% | 0.98% | 0.98% | 1.01% | 1.08% | |||||||||||
Ratio of expenses to average net assets before waivers | 1.71%^ | 1.53% | 1.67% | 1.71% | 1.71% | 1.67% | |||||||||||
Ratio of net investment income to average net assets2 | 2.09%^ | 2.04% | 2.17% | 2.27% | 2.68% | 2.62% | |||||||||||
Portfolio turnover rate | 9.00% | 53.14% | 23.42% | 13.08% | 4.85% | 10.57% |
1 | Net realized and unrealized gains (losses) per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period. |
2 | Reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
^ | Annualized |
+ | Unaudited. |
# | Not Annualized. |
|
|
|
|
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions. | |
| |
The accompanying notes are an integral part of these financial statements. |
EXPENSE EXAMPLE (unaudited)
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads), 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 one-half year period shown below and held for the entire one-half year period.
Actual expenses - The section in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns 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 account value of $8,600 divided by $1,000 equals 8.6), then multiply the result by the number in the appropriate column for your share class in the column entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes - The section in the table under the heading “Hypothetical (5% return before expenses)” 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, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the section in the table under the heading “Hypothetical (5% return before expenses)” 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.
Beginning | Ending | Expenses | ||
Account | Account | Paid | Annualized | |
Value | Value | During | Expense | |
| 7/31/17 | 1/31/18 | Period* | Ratio |
Kansas Municipal Fund | ||||
Actual - Class A | $1,000.00 | $ 997.30 | $4.94 | 0.98% |
Actual - Class I | $1,000.00 | $ 995.90 | $1.84 | 0.73% |
Hypothetical - Class A (5% return before expenses) | $1,000.00 | $1,020.26 | $5.00 | 0.98% |
Hypothetical - Class I (5% return before expenses) | $1,000.00 | $1,010.74 | $1.87 | 0.73% |
Nebraska Municipal Fund | ||||
Actual - Class A | $1,000.00 | $ 997.20 | $4.94 | 0.98% |
Actual - Class I | $1,000.00 | $ 994.90 | $1.84 | 0.73% |
Hypothetical - Class A (5% return before expenses) | $1,000.00 | $1,020.26 | $5.00 | 0.98% |
Hypothetical - Class I (5% return before expenses) | $1,000.00 | $1,010.74 | $1.87 | 0.73% |
Oklahoma Municipal Fund | ||||
Actual - Class A | $1,000.00 | $ 993.10 | $4.93 | 0.98% |
Actual - Class I | $1,000.00 | $ 992.40 | $1.82 | 0.73% |
Hypothetical - Class A (5% return before expenses) | $1,000.00 | $1,020.26 | $5.00 | 0.98% |
Hypothetical - Class I (5% return before expenses) | $1,000.00 | $1,010.74 | $1.87 | 0.73% |
Maine Municipal Fund | ||||
Actual - Class A | $1,000.00 | $ 993.70 | $4.93 | 0.98% |
Actual - Class I | $1,000.00 | $ 992.30 | $1.85 | 0.73% |
Hypothetical - Class A (5% return before expenses) | $1,000.00 | $1,020.26 | $5.00 | 0.98% |
Hypothetical - Class I (5% return before expenses) | $1,000.00 | $1,010.74 | $1.87 | 0.73% |
New Hampshire Municipal Fund | ||||
Actual | $1,000.00 | $ 989.60 | $4.93 | 0.98% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.26 | $5.00 | 0.98% |
| ||||
*Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 186 days in one-half year period, and dividend by 365 days in the fiscal year (to reflect the one-half year period). |
BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENT (unaudited)
Viking Fund Management, LLC (“Viking” or “Adviser”), the Fund’s investment adviser; Integrity Funds Distributor, LLC (“IFD”), the Fund’s underwriter; and Integrity Fund Services, LLC (“IFS”), the Fund’s transfer, accounting, and administrative services agent; are subsidiaries of Corridor Investors, LLC (“Corridor”), the Fund’s sponsor.
The approval and the continuation of a fund’s investment advisory agreements must be specifically approved at least annually (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “Interested Persons” of any party (“Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval. In preparation for the meeting, the Board requests and reviews a wide variety of materials provided by the Fund’s adviser. The Independent Trustees also received advice from their independent counsel on the issues to focus on during contract renewals. At a meeting held on October 30, 2017, the Board of Trustees, including a majority of the independent Trustees of the Trusts, renewed the Management and Investment Advisory Agreement (“Advisory Agreement”), between the Funds and Viking.
The Trustees, including a majority of Trustees who are neither party to the Advisory Agreement nor “interested persons” of any such party (as such term is defined for regulatory purposes), unanimously renewed the Advisory Agreements. In determining whether it was appropriate to renew the Advisory Agreements, the Trustees requested information, provided by the Investment Adviser that it believed to be reasonably necessary to reach its conclusion. In connection with the renewal of the Advisory Agreements, the Board reviewed factors set out in judicial decisions and Securities Exchange Commission (“SEC”) directives relating to the renewal of advisory contracts, which include but are not limited to, the following:
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| (a) | the nature and quality of services to be provided by the adviser to the fund; |
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| (b) | the various personnel furnishing such services and their duties and qualifications; |
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| (c) | the relevant fund’s investment performance as compared to standardized industry performance data; |
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| (d) | the adviser’s costs and profitability of furnishing the investment management services to the fund; |
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| (e) | the extent to which the adviser realizes economies of scale as the fund grows larger and the sharing thereof with the fund; |
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| (f) | an analysis of the rates charged by other investment advisers of similar funds; |
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| (g) | the expense ratios of the applicable fund as compared to data for comparable funds; and |
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| (h) | information with respect to all benefits to the adviser associated with the fund, including an analysis of so-called “fallout” benefits or indirect profits to the adviser from its relationship to the funds. |
In evaluating the Adviser’s services and its fees, the Trustees reviewed information concerning the performance of each Fund, the recent financial statements of the Adviser and its parent, and the proposed advisory fee and other fund expenses compared to the level of advisory fees and expenses paid by other similar funds. In reviewing the Advisory Agreement with the foregoing Funds, the Trustees considered, among other things, the fees, the Fund’s past performance, the nature and quality of the services provided, the profitability of the Adviser and its parent (estimated costs and estimated profits from furnishing the proposed services to each Fund), and the expense waivers by the Adviser. The Trustees also considered any ancillary benefits to the Adviser and its affiliates for services provided to each Fund. The Trustees did not identify any single factor discussed above as all-important or controlling. The Trustees also considered the Adviser’s commitment to contractually or voluntarily limit Fund expenses, the skills and capabilities of the Adviser, and the representations from the Adviser that the Funds’ portfolio managers will continue to manage each Fund in substantially the same way as it had been managed.
The following paragraphs summarize the material information and factors considered by the Board, including the Independent Trustees, as well as their conclusions relative to such factors in considering the renewal of the Advisory Agreement:
Nature, extent and quality of services: The Investment Adviser currently provides services to twelve funds with investment strategies ranging from non-diversified sector funds to broad-based equity funds. The experience and expertise of the Investment Adviser is attributable to the long-term focus on managing investment companies and has the potential to enhance the Funds’ future performance. The Investment Adviser has a strong culture of compliance and provides quality services. The overall nature and quality of the services provided by the Investment Adviser had historically been, and continues to be, adequate and appropriate.
Investment performance: Upon a review of the total return history and category rankings of each Fund, the Trustees deemed the performance of each Fund to be satisfactory. In addition, each of the Funds has been meeting its investment objective.
As of July 31, 2017, the risk for: (1) Kansas Municipal Fund was below average for the 3, 5, and 10-year time periods; (2) Nebraska Municipal Fund was above average for the 3 and 5-year time periods. It had average risk for the 10-year period; (3) Oklahoma Municipal Fund was above average for the 3 and 5-year periods, and high for the 10-year time period; (4) New Hampshire Municipal Fund was high for the 3-year period, average for the 5-year period, and below average for the 10-year time period; and (5) Maine Municipal Fund was average for the 3, 5 and 10–year time periods.
As of July 31, 2017, the Fund return rating for: (1) Kansas Municipal Fund was average for the 3, 5, and 10-year time periods; (2) Nebraska Municipal Fund was average for the 3, 5, and 10-year time periods; (3) Oklahoma Municipal Fund was average for the 3, 5 and 10-year periods; (4) New Hampshire Municipal Fund was below average for the 3, 5 and 10-year periods; and (5) Maine Municipal Fund was below average for the 3 and 5- year periods, and average for the 10-year time period.
As of July 31, 2017, the Fund performance for: (1) Kansas Municipal Fund returns for the 1, 3, 5 and 10-year periods were below its index. The returns for the 1, 3, 5, and 10-year periods were above its median classification; (2) Nebraska Municipal Fund returns for the 1, 3, 5, and 10-year periods were below its index. The returns for the 3, 5, and 10-year periods were above its median classification. The return for the 1-year time period was below its median classification; (3) Oklahoma Municipal Fund returns for the 1, 3, 5, and 10-year periods were below its index. Its returns for the 3, 5, and 10-year periods were above its median classification. The return for the 1-year time period was below its median classification; (4) New Hampshire Municipal Fund returns for the 1, 3, 5, and 10-year periods were below its index and the returns for the 3, 5, and 10-year periods were at or above its median classification. The return for the 1-year period was below its median classification; and (5) Maine Municipal Fund returns for the 1, 3, 5, and 10-year periods were below its index, and the returns for the 1, 3, 5, and 10-year periods were at or below its median classification.
Profitability: In connection with its review of fees, the Board also considered the profitability of Viking for its advisory activities. In this regard, the Board reviewed information regarding the finances of Corridor and Viking. Based on the information provided, the Board concluded that the level of profitability was not unreasonable in light of the services provided.
Economies of scale: The Board discussed the benefits for the Funds as the Adviser could realize economies of scale as each of the Funds grow larger, but the size of the Funds has not reached an asset level to benefit from economies of scale. The advisory fees are structured appropriately based on the size of the Fund. The Adviser has indicated that a new advisory fee structure may be looked at if a Fund reaches an asset level where it could benefit from economies of scale.
Analysis of the rates charged by other investment advisers of similar funds: A comparison of the management fees charged by the Advisor seemed reasonable to the Trustees when compared to similar funds in objective and size. The Adviser is voluntarily waiving advisory fees to a certain degree due to the small size of the Funds.
Expense ratios of the applicable fund as compared to data for comparable funds: Each of the Fund’s net expense ratios of 0.98% on Class A shares was comparable to slightly above the average expense ratio of other funds of similar objective and size.
Information with respect to all benefits to the adviser associated with the fund, including an analysis of so-called “fallout” benefits or indirect profits to the adviser from its relationship to the funds: The Board noted that the Adviser and its affiliates do not realize material direct benefits from their relationship with the Fund except for fees earned for services provided. In this regard, the Trustees noted that there were no soft dollar arrangements involving the Adviser and Viking Mutual Funds.
In voting unanimously to renew the Advisory Agreement, the Trustees did not identify any single factor as being of paramount importance. The Trustees noted that their discussion in this regard was premised on numerous factors including the nature, quality and resources of Viking, the strategic plan involving the Funds, and the potential for increased distribution and growth of the Funds. They determined that, after considering all relevant factors, the renewal of the Advisory Agreements would be in the best interest of each of the Funds.
PROXY VOTING OF FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to securities held in each Fund’s portfolio is available, without charge and upon request, by calling 800-276-1262. A report on Form N-PX of how the Funds voted any such proxies during the most recent 12-month period ended June 30 is available through the Funds’ website at www.integrityvikingfunds.com. The information is also available from the Electronic Data Gathering Analysis and Retrieval (“EDGAR”) database on the website of the Securities and Exchange Commission (“SEC”) at www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
Within 60 days of the end of its second and fourth fiscal quarters, the Funds provide a complete schedule of portfolio holdings in their semi-annual and annual reports on the Form N-CSR(S). These reports are filed electronically with the SEC and are delivered to the shareholders of the Funds. The Funds also file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q and N-CSR(S) are available on the SEC’s website at www.sec.gov. The Funds’ Forms N-Q and N-CSR(S) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 202-551-8090. You may also access this information from the Funds’ website at www.integrityvikingfunds.com.
SHAREHOLDER INQUIRIES AND MAILINGS
Direct inquiries regarding the Funds to: | Direct inquiries regarding account information to: |
To reduce their expenses, the Funds may mail only one copy of its prospectus and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive additional copies of these documents, please call Integrity Funds Distributor at 800-276-1262 or contact your financial institution. Integrity Funds Distributor will begin sending you individual copies 30 days after receiving your request.
Integrity Viking Funds are sold by prospectus only. An investor should consider the investment objectives, risks, and charges and expenses of the investment company carefully before investing. The prospectus contains this and other information about the investment company. You may obtain a prospectus at no cost from your financial adviser or at www.integrityvikingfunds.com. Please read the prospectus carefully before investing.
Equity Funds
Integrity Dividend Harvest Fund
Integrity Energized Dividend Fund
Integrity Growth & Income Fund
Williston Basin/Mid-North America Stock Fund
Corporate Bond Fund
Integrity High Income Fund
State-Specific Tax-Exempt Bond Funds
Viking Tax-Free Fund for Montana
Viking Tax-Free Fund for North Dakota
Kansas Municipal Fund
Maine Municipal Fund
Nebraska Municipal Fund
New Hampshire Municipal Fund
Oklahoma Municipal Fund
Item 2. CODE OF ETHICS.
The information required in this Item is only required in an annual report on Form N-CSR.
Item 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The information required in this Item is only required in an annual report on Form N-CSR.
Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
The information required by this Item is only required in an annual report on Form N-CSR.
Item 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable
Item 6. INVESTMENTS.
The Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable
Item 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable
Item 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable
Item 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees in the last fiscal half-year.
Item 11. CONTROLS AND PROCEDURES.
| (a) | Based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this Form N-CSR (the “Report”), the registrant’s principal executive officer and principal financial officer believe that the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effectively designed to ensure that information required to be disclosed by the registrant in the Report is recorded, processed, summarized and reported by the filing date, including ensuring that information required to be disclosed in the Report is accumulated and communicated to the registrant’s principal executive officer and principal financial officer who are making certifications in the Report, as appropriate, to allow timely decisions regarding required disclosure. |
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| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant’s most recent fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
Item 12. EXHIBITS.
| (a) | (1) | The registrant’s code of ethics filed pursuant to Item 2 of the N-CSR is filed with the registrant’s annual N-CSR. |
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| (2) | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 is filed and attached hereto. |
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| (3) | Not applicable. |
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| (b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is filed and attached hereto. |
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.
Viking Mutual Funds
By: /s/ Shannon D. Radke
Shannon D. Radke
President
April 6, 2018
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: /s/ Shannon D. Radke
Shannon D. Radke
President
April 6, 2018
By: /s/ Adam Forthun
Adam Forthun
Treasurer
April 6, 2018