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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 811-2918
DUPREE MUTUAL FUNDS
(Exact Name of Registrant as Specified in Charter)
125 South Mill Street, Vine Center, Suite 100
Lexington, Kentucky 40507
(Address of Principal Executive Offices) (Zip Code)
Allen E. Grimes, III
125 South Mill Street, Vine Center, Suite 100
Lexington, Kentucky 40507
(Name and address of agent for service)
Registrant’s Telephone Number, including Area Code (859) 254-7741
Date of fiscal year end: June 30
Date of reporting period: December 31, 2020
Table of Contents
Item 1. Report to Stockholders
Table of Contents
December 31, 2020
SEMI ANNUAL REPORT
TO SHAREHOLDERS
Table of Contents
ABOUT DUPREE MUTUAL FUNDS
In 1941, Dupree & Company, Inc. (the “Adviser” or “Dupree”) began business in Harlan, Kentucky as a small securities brokerage firm specializing in tax-exempt municipal bonds.
Over the years the firm, which in 1963 moved its offices to Lexington, Kentucky, grew to become a regional leader in public finance, helping to structure complex and innovative municipal bond financing for some of the largest public projects in the Commonwealth of Kentucky.
In 1979, the Adviser began what is now Dupree Mutual Funds (the “Trust”) with the Kentucky Tax-Free Income Series and became the Fund’s investment adviser. The Fund was one of the first single-state municipal bond funds in the country, and the first mutual fund to invest solely in Kentucky municipal bonds. Since then, several new offerings have been added to the Dupree Mutual Funds family:
Kentucky Tax-Free Short-to-Medium Series in 1987;
Intermediate Government Bond Series in 1992;
Tennessee Tax-Free Income Series in 1993;
Tennessee Tax-Free Short-to-Medium Series in 1994;
North Carolina Tax-Free Income Series in 1995;
North Carolina Tax-Free Short-to-Medium Series in 1995;
Alabama Tax-Free Income Series in 2000;
Mississippi Tax-Free Income Series in 2000; and
Taxable Municipal Bond Series in 2010.
Today, after more than 79 years in business, Dupree continues to be a pioneer in the industry. Our Kentucky, Tennessee, and Mississippi Series are currently the ONLY 100% “no-load” municipal bond funds available in those states. No-load means simply that shares of the funds are offered directly to investors with no front or back-end sales charges, as opposed to load funds, which are sold through brokerage firms or other institutions that typically carry sales charges.
At Dupree Mutual Funds, our goal is a simple one: to offer investors a high-quality, low-cost way to invest in municipal and government bonds while providing superior service to our shareholders. We encourage you to let us know how we’re doing.
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Management’s Discussion of Fund Performance: | (Unaudited) |
Six Months Ended December 31, 2020
The investment objective for our tax-exempt municipal bond funds is to provide a high level of tax-free income derived from state-specific municipal securities without incurring undue risk to principal. Similarly, the investment objectives for our government bond fund and taxable municipal bond fund are to provide a high level of taxable income derived from securities of the U.S. Government and its agencies and taxable municipal bonds, respectively, without incurring undue risk to principal. We do not try to anticipate market direction; instead, we attempt to buy high quality investment grade bonds at the best possible prices and yields and hold them in down markets as well as up markets.
Factors that may influence the performance of a state-specific tax-exempt municipal bond fund or a taxable municipal bond fund include, but are not limited to, movements in interest rates, a downgrade or upgrade of credit ratings assigned to bonds issued by state or local governments, changes in the credit ratings assigned to bond insurers, downturns or upturns in the specific economies of a given state, the rate at which bonds are called, and the rate at which revenues used to pay debt service on issued bonds are received by state and local governments. Similarly, the performance of a government bond fund may be influenced by a number of factors including, but not limited to, movements in interest rates, prevailing conditions in the U.S. Government securities markets, changes in an issuer’s financial strength, changes in the credit rating assigned to an obligation, and the rate at which bonds are called.
During the six month period ended December 31, 2020 (the “Reporting Period”), the economy continued to slowly rebound from the sharp contraction caused by the COVID-19 pandemic. Real gross domestic product (“GDP”) increased at an annual rate of 33.4 percent in the third quarter which reflected continued efforts to reopen businesses and resume activities that were postponed or restricted due to COVID-19. Economic growth continued to recover during the fourth quarter, albeit at a much slower pace, with real GDP increasing at a 4.0 percent annual rate (advance estimate).
Labor market conditions continued to slowly improve during the Reporting Period. The seasonally adjusted national unemployment rate was 6.7 percent in December. This was down from a high of 14.8 percent in April 2020, but still significantly above the level of unemployment at the start of the year. Employment losses have been concentrated primarily among lower-wage workers.
Key measures of inflation continued to run at or below the Federal Reserve’s (the “Fed”) 2.0 percent inflation target during the Reporting Period. The Consumer Price Index (“CPI”) increased at an annual rate of 1.3 percent in December. The core CPI which excludes food and energy costs increased at an annual rate of 1.6 percent in December. The Fed’s preferred inflation gauge, the core Personal Consumption Expenditure Index (PCE), increased at an annual rate of 1.5 percent in December. Price inflation has continued to be held down by relatively weak aggregate demand and declines in consumer energy prices. Near-term and long-term inflation expectations have ticked up slightly, but inflation continues to remain within the range in which it has fluctuated in recent years.
In response to the COVID-19 pandemic, the Fed cut the federal funds target rate range by 100 basis points at its March meeting. During the second half of the year, the Fed left the fed funds target rate range unchanged at 0.00%-0.25%. The Fed has indicated that short-term rates will likely remain low for an extended period of time.
The Fed also launched a number of emergency liquidity facilities under the authority of section 13(3) of the Federal Reserve Act designed to support the flow of credit to businesses, households, and state and local governments. The Fed also ramped up its purchase of Treasury securities and agency mortgage backed securities in an effort to reduce volatility in financial markets (the bond buying program is ongoing). The measures taken by the Fed were largely successful as financial markets stabilized and established new highs by the end of the year. The emergency lending facilities expired at the end of the year but can be reauthorized, if necessary.
Yields on benchmark 10-year and 30-year AAA-rated municipal securities grinded lower during the second half of the year (declining 19 and 24 basis points, respectively). Lower yields resulted in higher bond prices. Despite the widespread disruption and economic dislocation caused by COVID-19, credit conditions in the investment grade municipal bond market have held up relatively well. Some municipal credits have been disproportionately impacted by COVID-19, such as convention centers, airports, small hospitals and colleges, and toll roads. There has been a slight uptick in the default rate, but it has been largely confined to the high yield sector. Bonds issued to finance nursing homes represented roughly 40% of the defaults, followed closely by bonds issued to finance land secured deals involving real estate and industrial projects.
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States that are particularly dependent upon tourism and leisure industries and that have higher unemployment rates and higher virus transmission rates are generally seeing larger impacts on their economies and tax revenues. While the pandemic has led to a significant decline in state tax revenues, the news on this front is mixed. State income taxes have remained relatively buoyant because the majority of the job losses have been concentrated among lower earners who pay a relatively small amount of income tax. Tax receipts have been especially resilient in states that rely on progressive income taxes, as higher earners have successfully adjusted to the new work-from-home environment. Additionally, due to a recent change in the law, many states are now collecting taxes on online sales that have boomed during the pandemic.
Aid to state and local governments via the Coronavirus Aid, Relief and Economic Security Act largely offset revenue declines for the last fiscal year that ended in June. However, states and cities are now faced with making difficult budget decisions in the current fiscal year. A proposal for an additional $350 billion in direct assistance for states and cities has been put forth by the Biden administration as part of its $1.9 trillion relief plan. Moody’s Analytics, Inc. has estimated that aid of about $80 billion to $100 billion would likely cover the shortfall facing states and local governments through mid-2022. It seems likely that additional aid to states and cities will be approved, but the exact amount of the assistance is still difficult to predict. Unfunded pension and healthcare obligations and rising Medicaid expenditures continue to present budgetary challenges for a number of states.
A discussion of the performance of each of our funds for the six month period ended December 31, 2020 follows:
During the Reporting Period, municipal bonds provided positive total returns with the Bloomberg Barclays Municipal Bond Index (“Muni Index”) increasing 3.07 percent. Taxable municipal bonds outperformed tax-exempts bonds with the Bloomberg Barclays Taxable Municipal Bond Index (“Taxable Muni Index”) returning 3.16 percent. The Bloomberg Barclays U.S. Intermediate Government Bond Index (“Intermediate Government Bond Index”) provided a negative total return of -0.02 percent.
Longer-dated investment grade municipal bonds outperformed shorter-dated municipal bonds during the Reporting Period. Municipal bonds with maturities in the range of 17-22 years and 22+ years provided the highest returns, whereas municipal bonds with maturities in the range of 1-2 years provided the lowest returns. Additionally, lower-rated bonds generally outperformed higher-rated bonds. Municipal bonds rated “BAA” provided the highest returns, while bonds rated “AAA” provided the lowest returns. The Muni Index holds a higher percentage of bonds rated “BAA” than any of our single-state municipal bond funds.
The Kentucky Tax-Free Income Series provided a total return of 3.25 percent during the Reporting Period and slightly outperformed the Muni Index. The Kentucky Tax-Free Short-to-Medium Series provided a total return of 1.58 percent. The Kentucky Tax-Free Short-to-Medium Series had a shorter duration (2.73 years) than the Muni Index (5.18 years), which led to its underperformance during the Reporting Period.
The Tennessee Tax-Free Income Series provided a total return of 1.99 percent during the Reporting Period. The Tennessee Tax-Free Short-to-Medium Series provided a total return of 0.89 percent. Both the Tennessee Tax-Free Income Series and the Tennessee Tax-Free Short-to-Medium Series had shorter durations (3.78 years and 3.25 years, respectively) than the Muni Index (5.18 years), which led to their underperformance during the Reporting Period.
The North Carolina Tax-Free Income Series provided a total return of 2.32 percent during the Reporting Period. The North Carolina Tax-Free Short-to-Medium Series provided a total return of 1.34 percent. Both the North Carolina Tax-Free Income Series and the North Carolina Tax-Free Short-to-Medium Series had shorter durations (5.05 and 3.82 years, respectively) than the Muni Index (5.18 years), which led to their underperformance during the Reporting Period.
The Alabama Tax-Free Income Series provided a total a total return of 1.98 percent during the Reporting Period. The Alabama Tax-Free Income Series had a shorter duration (4.54 years) than the Muni Index (5.18 years), which led to its underperformance during the Reporting Period.
The Mississippi Tax-Free Income Series provided a total return of 1.65 percent during the Reporting Period. The Mississippi Tax-Free Income Series had a shorter duration (4.56 years) than the Muni Index (5.18 years), which led to its underperformance during the Reporting Period.
The Intermediate Government Bond Series provided a total return of 0.06 percent which was in line with the performance of the Intermediate Government Bond Index during the Reporting period.
The Taxable Municipal Bond Series provided a total return of 2.63 percent during the Reporting Period. The Taxable Municipal Bond Series had a shorter duration (7.61 years) than the Taxable Municipal Bond Index (9.99 years), which led to its underperformance during the Reporting Period.
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It should be noted that none of the Bloomberg Barclays indices take into account any operating expenses or transaction costs. An investment cannot be made directly in an index.
Thank you for investing with Dupree Mutual Funds.
Total returns include changes in share price, reinvestment of dividends, and reinvestment of capital gains, if any. Performance data quoted represents past performance which is not a guarantee of future results. The opinions expressed herein are those of the funds’ portfolio management and are current as of December 31, 2020. Management’s opinions are not guarantees of performance or investment results and should not be taken as investment advice. You may lose money investing in the funds. |
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The illustrations below provide each Fund’s sector allocation and | Unaudited |
Alabama Tax-Free Income Series | ||||
| CREDIT QUALITY* | % of Net Assets at Fair Value | |||
Aaa/AAA | 1.12% | |||
Aa/AA | 91.41% | |||
A | 3.93% | |||
Not Rated | 3.54% | |||
|
| |||
| 100.00% | ||||
|
| |||
| COMPOSITION | ||||
| % of Net Assets | ||||
Prerefunded | 28.87% | |||
School Improvement | 19.06% | |||
Municipal Utility Revenue | 13.70% | |||
University Consolidated Education and Building Revenue | 12.87% | |||
Public Facilities | 11.68% | |||
Refunding | 5.47% | |||
Hospital and Healthcare Revenue | 2.38% | |||
Turnpikes/Toll Road/Highway Revenue | 2.35% | |||
Miscellaneous Public Improvement | 2.28% | |||
Other Assets Less Liabilities | 1.34% | |||
|
| |||
| 100.00% | ||||
|
| |||
Kentucky Tax-Free Income Series | ||||
| CREDIT QUALITY* | % of Net Assets at Fair Value | |||
Aa/AA | 49.78% | |||
A | 48.97% | |||
Baa/BBB | 0.02% | |||
Not Rated | 1.23% | |||
|
| |||
| 100.00% | ||||
|
| |||
| COMPOSITION | ||||
| % of Net Assets | ||||
Miscellaneous Public Improvement | 31.56% | |||
School Improvement | 14.69% | |||
University Consolidated Education and Building Revenue | 11.99% | |||
Municipal Utility Revenue | 11.41% | |||
Turnpikes/Toll Road/Highway Revenue | 7.25% | |||
Hospital and Healthcare Revenue | 5.96% | |||
Public Facilities | 5.79% | |||
Prerefunded | 5.57% | |||
Refunding | 2.92% | |||
Airport Revenue | 0.74% | |||
Ad Valorem Property | 0.14% | |||
State and Local Mortgage/Housing Revenue | 0.11% | |||
Other Assets Less Liabilities | 1.87% | |||
|
| |||
| 100.00% | ||||
|
| |||
Kentucky Tax-Free Short-to-Medium Series | ||||
| CREDIT QUALITY* | % of Net Assets at Fair Value | |||
Aaa/AAA | 0.39% | |||
Aa/AA | 25.89% | |||
A | 73.72% | |||
|
| |||
| 100.00% | ||||
|
| |||
| COMPOSITION | ||||
| % of Net Assets | ||||
School Improvement | 22.07% | |||
Miscellaneous Public Improvement | 19.22% | |||
Public Facilities | 17.59% | |||
Turnpikes/Toll Road/Highway Revenue | 9.48% | |||
University Consolidated Education and Building Revenue | 8.57% | |||
Hospital and Healthcare Revenue | 7.05% | |||
Municipal Utility Revenue | 5.43% | |||
Refunding | 4.04% | |||
Prerefunded | 3.52% | |||
Airport Revenue | 1.26% | |||
Other Assets Less Liabilities | 1.77% | |||
|
| |||
| 100.00% | ||||
|
| |||
Mississippi Tax-Free Income Series | ||||
| CREDIT QUALITY* | % of Net Assets at Fair Value | |||
Aa/AA | 91.10% | |||
A | 8.90% | |||
|
| |||
| 100.00% | ||||
|
| |||
| COMPOSITION | ||||
| % of Net Assets | ||||
University Consolidated Education and Building Revenue | 29.11% | |||
Prerefunded | 20.09% | |||
Municipal Utility Revenue | 14.46% | |||
Turnpikes/Toll Road/Highway Revenue | 8.02% | |||
Ad Valorem Property | 6.46% | |||
Public Facilities | 5.65% | |||
School Improvement | 5.46% | |||
Refunding | 4.76% | |||
Miscellaneous Public Improvement | 2.61% | |||
Hospital and Healthcare Revenue | 1.74% | |||
Other Assets Less Liabilities | 1.64% | |||
|
| |||
| 100.00% | ||||
|
| |||
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The illustrations below provide each Fund’s sector allocation and | Unaudited |
North Carolina Tax-Free Income Series | ||||
| CREDIT QUALITY * | % of Net Assets at Fair Value | |||
Aaa/AAA | 5.58% | |||
Aa/AA | 78.94% | |||
A | 15.48% | |||
|
| |||
| 100.00% | ||||
|
| |||
| COMPOSITION | ||||
| % of Net Assets | ||||
University Consolidated Education and Building Revenue | 18.54% | |||
School Improvement | 17.63% | |||
Public Facilities | 14.38% | |||
Municipal Utility Revenue | 12.31% | |||
Prerefunded | 9.61% | |||
Refunding | 7.62% | |||
Hospital and Healthcare Revenue | 6.54% | |||
Turnpikes/Toll Road/Highway Revenue | 4.62% | |||
Miscellaneous Public Improvement | 3.52% | |||
Airport Revenue | 3.12% | |||
Lease Revenue | 1.05% | |||
Escrowed to Maturity | 0.59% | |||
Ad Valorem Property | 0.23% | |||
Other Assets Less Liabilities | 0.24% | |||
|
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| 100.00% | ||||
|
| |||
North Carolina Tax-Free Short-to-Medium Series | ||||
| CREDIT QUALITY * | % of Net Assets at Fair Value | |||
Aaa/AAA | 2.25% | |||
Aa/AA | 62.56% | |||
A | 34.49% | |||
Not Rated | 0.70% | |||
|
| |||
| 100.00% | ||||
|
| |||
| COMPOSITION | ||||
| % of Net Assets | ||||
University Consolidated Education and Building Revenue | 23.96% | |||
Refunding | 17.57% | |||
Municipal Utility Revenue | 16.70% | |||
School Improvement | 11.16% | |||
Public Facilities | 8.26% | |||
Hospital and Healthcare Revenue | 5.16% | |||
Turnpikes/Toll Road/Highway Revenue | 3.87% | |||
Prerefunded | 3.66% | |||
Ad Valorem Property | 2.13% | |||
Lease Revenue | 1.96% | |||
Escrowed to Maturity | 1.74% | |||
Miscellaneous Public Improvement | 1.05% | |||
Other Assets Less Liabilities | 2.78% | |||
|
| |||
| 100.00% | ||||
|
| |||
Tennessee Tax-Free Income Series | ||||
| CREDIT QUALITY* | % of Net Assets at Fair Value | |||
Aaa/AAA | 3.06% | |||
Aa/AA | 79.01% | |||
A | 16.57% | |||
Not Rated | 1.36% | |||
|
| |||
| 100.00% | ||||
|
| |||
| COMPOSITION | ||||
| % of Net Assets | ||||
Municipal Utility Revenue | 34.72% | |||
School Improvement | 11.92% | |||
Public Facilities | 10.79% | |||
University Consolidated Education and Building Revenue | 8.31% | |||
Miscellaneous Public Improvement | 8.20% | |||
Prerefunded | 8.06% | |||
Hospital and Healthcare Revenue | 7.04% | |||
Refunding | 5.22% | |||
Airport Revenue | 2.76% | |||
Industrial Revenue | 0.93% | |||
Other Assets Less Liabilities | 2.05% | |||
|
| |||
| 100.00% | ||||
|
| |||
Tennessee Tax-Free Short-to-Medium Series | ||||
| CREDIT QUALITY* | % of Net Assets at Fair Value | |||
Aa/AA | 81.71% | |||
A | 17.94% | |||
Not Rated | 0.35% | |||
|
| |||
| 100.00% | ||||
|
| |||
| COMPOSITION | ||||
| % of Net Assets | ||||
Refunding | 23.47% | |||
Public Facilities | 22.11% | |||
Municipal Utility Revenue | 21.73% | |||
School Improvement | 13.65% | |||
University Consolidated Education and Building Revenue | 10.25% | |||
Prerefunded | 2.00% | |||
Airport Revenue | 1.74% | |||
Miscellaneous Public Improvement | 0.64% | |||
Other Assets Less Liabilities | 4.41% | |||
|
| |||
| 100.00% | ||||
|
| |||
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The illustrations below provide each Fund’s sector allocation and | Unaudited |
Intermediate Government Bond Series | ||||
| CREDIT QUALITY* | % of Net Assets at Fair Value | |||
Aaa/AAA | 100.00% | |||
|
| |||
| COMPOSITION | ||||
| % of Net Assets | ||||
Federal Farm Credit Bank | 65.02% | |||
Federal Home Loan Bank | 28.29% | |||
Federal Home Loan Mortgage Corporation | 3.11% | |||
Other Assets Less Liabilities | 3.58% | |||
|
| |||
| 100.00% | ||||
|
| |||
Taxable Municipal Bond Series | ||||
| CREDIT QUALITY* | % of Net Assets at Fair Value | |||
Aaa/AAA | 3.15% | |||
Aa/AA | 90.65% | |||
A | 6.20% | |||
|
| |||
| 100.00% | ||||
|
| |||
| COMPOSITION | ||||
| % of Net Assets | ||||
Municipal Utility Revenue | 31.51% | |||
Public Facilities | 13.83% | |||
Prerefunded | 8.82% | |||
School Improvement | 8.81% | |||
Refunding | 8.22% | |||
University Consolidated Education and Building Revenue | 6.53% | |||
State and Local Mortgage/Housing Revenue | 4.45% | |||
Hospital and Healthcare Revenue | 3.48% | |||
Miscellaneous Public Improvement | 3.08% | |||
Turnpikes/Toll Road/Highway Revenue | 2.98% | |||
Marina/Port Authority Revenue | 2.15% | |||
Ad Valorem Property | 1.78% | |||
Mass Transit | 1.74% | |||
Airport Revenue | 0.87% | |||
Other Assets Less Liabilities | 1.75% | |||
|
| |||
| 100.00% | ||||
|
| |||
| * | Ratings by Moody’s Investors Services, Inc. unless noted otherwise. See Schedules of Portfolio Investments for individual bond ratings. |
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DUPREE MUTUAL FUNDS — ALABAMA TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Alabama Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
| PREREFUNDED BONDS | ||||||||||||||||||
| 28.87% of Net Assets |
| |||||||||||||||||
Alabaster AL Board of Education Special Tax Warrants** | 5.000 | % | 09/01/2039 | A1 | $ | 600,000 | $ | 703,236 | ||||||||||
Auburn AL Waterworks Board Water Revenue | 5.000 | 09/01/2036 | Aa2 | 250,000 | 302,340 | |||||||||||||
Birmingham AL Waterworks** | 5.000 | 01/01/2038 | Aa2 | 550,000 | 602,668 | |||||||||||||
Birmingham AL Waterworks | 5.000 | 01/01/2040 | Aa2 | 150,000 | 178,407 | |||||||||||||
Decatur City AL Board of Education Special Tax | 5.000 | 02/01/2040 | Aa2 | 225,000 | 268,493 | |||||||||||||
Etowah County AL Board of Education Capital Outlay Tax | 5.000 | 09/01/2037 | A+* | 200,000 | 215,894 | |||||||||||||
Jasper AL Warrants | 5.000 | 03/01/2031 | A2 | 250,000 | 288,033 | |||||||||||||
Jasper AL Warrants | 5.000 | 03/01/2032 | A2 | 450,000 | 518,459 | |||||||||||||
Limestone County AL Water & Sewer Authority | 5.000 | 12/01/2033 | AA-* | 300,000 | 342,942 | |||||||||||||
Limestone County AL Water & Sewer Authority | 5.000 | 12/01/2034 | AA-* | 250,000 | 284,803 | |||||||||||||
Madison AL Warrants | 5.000 | 04/01/2035 | Aa2 | 350,000 | 420,403 | |||||||||||||
Morgan County AL Board of Education Capital Outlay Warrants | 5.000 | 03/01/2035 | NR | 155,000 | 166,755 | |||||||||||||
Morgan County AL Board of Education Capital Outlay Warrants | 5.000 | 03/01/2035 | NR | 245,000 | 263,581 | |||||||||||||
Morgan County AL Board of Education Capital Outlay Warrants | 5.000 | 03/01/2035 | AA-* | 405,000 | 435,448 | |||||||||||||
Opelika AL Warrants | 5.000 | 11/01/2031 | Aa2 | 150,000 | 156,083 | |||||||||||||
Shelby County AL Board of Education Capital Outlay Warrants** | 5.000 | 02/01/2031 | Aa2 | 430,000 | 431,720 | |||||||||||||
Trussville AL Warrants | 5.000 | 10/01/2039 | NR | 445,000 | 502,761 | |||||||||||||
Trussville AL Warrants** | 5.000 | 10/01/2039 | Aa2 | 775,000 | 876,734 | |||||||||||||
Tuscaloosa AL Warrants | 5.000 | 01/01/2032 | Aa1 | 350,000 | 400,334 | |||||||||||||
Tuscaloosa AL Warrants | 5.000 | 07/01/2034 | Aa1 | 300,000 | 350,313 | |||||||||||||
|
| |||||||||||||||||
| 7,709,407 | ||||||||||||||||||
| SCHOOL IMPROVEMENT BONDS |
| |||||||||||||||||
| 19.06% of Net Assets | ||||||||||||||||||
Bibb County AL Board of Education Special Tax | 4.000 | 04/01/2032 | AA* | 380,000 | 462,859 | |||||||||||||
Cherokee County AL Board of Education Tax Warrants | 4.000 | 12/01/2034 | A1 | 310,000 | 363,602 | |||||||||||||
Elmore County AL Board of Education | 4.000 | 08/01/2036 | Aa3 | 225,000 | 270,945 | |||||||||||||
Elmore County AL Board of Education | 4.000 | 08/01/2038 | Aa3 | 250,000 | 299,268 | |||||||||||||
Houston County AL Board of Education Special Tax School Warrants | 3.000 | 12/01/2037 | AA* | 250,000 | 276,893 | |||||||||||||
Jefferson County AL Board of Education Public School Warrants | 4.000 | 02/01/2042 | A1 | 325,000 | 371,186 | |||||||||||||
Jefferson County AL Public Schools | 4.000 | 02/01/2038 | A1 | 165,000 | 190,342 | |||||||||||||
Limestone County AL Board of Education | 5.000 | 07/01/2033 | AA* | 255,000 | 292,750 | |||||||||||||
Madison AL Board of EducationSpecial Tax School Warrants | 4.000 | 02/01/2041 | Aa3 | 370,000 | 446,879 | |||||||||||||
Madison County AL Board of Education Capital Outlay** | 5.000 | 09/01/2031 | Aa3 | 660,000 | 787,096 | |||||||||||||
Marshall County AL Board of Education Special Tax School Warrants | 4.000 | 03/01/2033 | A2 | 250,000 | 281,753 | |||||||||||||
Oxford AL Board of Education School Tax Warrants | 4.000 | 05/01/2045 | Aa3 | 350,000 | 413,236 | |||||||||||||
Troy AL Public Educational Building Authority | 5.250 | 12/01/2036 | A2 | 30,000 | 30,074 | |||||||||||||
Tuscaloosa County AL Board of Education Special Tax School Warrants | 5.000 | 02/01/2036 | Aa3 | 250,000 | 303,118 | |||||||||||||
Tuscaloosa County AL Board of Education Special Tax School Warrants | 5.000 | 02/01/2037 | Aa3 | 250,000 | 302,143 | |||||||||||||
|
| |||||||||||||||||
| 5,092,144 | ||||||||||||||||||
| MUNICIPAL UTILITY REVENUE BONDS |
| |||||||||||||||||
| 13.70% of Net Assets | ||||||||||||||||||
Athens AL Water & Sewer | 4.000 | 05/01/2039 | A1 | 200,000 | 240,306 | |||||||||||||
Athens AL Water & Sewer | 4.000 | 05/01/2040 | A1 | 100,000 | 119,771 | |||||||||||||
Berry AL Water & Sewer Revenue | 4.000 | 09/01/2039 | AA* | 250,000 | 283,973 | |||||||||||||
Birmingham AL Waterworks | 4.000 | 01/01/2037 | Aa2 | 250,000 | 287,905 | |||||||||||||
Birmingham AL Waterworks | 4.000 | 01/01/2041 | Aa2 | 225,000 | 257,299 | |||||||||||||
Coosa Valley Water Supply | 4.000 | 10/01/2036 | AA-* | 150,000 | 180,693 | |||||||||||||
Gadsden AL Waterworks & Sewer Board | 4.000 | 06/01/2034 | A1 | 120,000 | 138,785 | |||||||||||||
Jasper AL Waterworks & Sewer Board Utility Revenue | 5.000 | 06/01/2030 | A+* | 455,000 | 456,228 | |||||||||||||
Limestone County AL Water & Sewer Authority | 4.750 | 12/01/2033 | AA* | 290,000 | 347,527 | |||||||||||||
Limestone County AL Water & Sewer Authority | 4.750 | 12/01/2035 | AA* | 400,000 | 455,320 | |||||||||||||
Opelika AL Utilities Board | 4.000 | 06/01/2039 | Aa3 | 250,000 | 285,465 | |||||||||||||
Prattville AL Sewer Warrants | 4.000 | 11/01/2042 | AA-* | 375,000 | 427,556 | |||||||||||||
Scottsboro AL Waterworks Sewer & Gas | 4.000 | 08/01/2040 | AA* | 150,000 | 179,073 | |||||||||||||
|
| |||||||||||||||||
| 3,659,901 | ||||||||||||||||||
The accompanying notes are an integral part of the financial statements.
1
Table of Contents
DUPREE MUTUAL FUNDS — ALABAMA TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Alabama Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS |
| |||||||||||||||||
| 12.87% of Net Assets | ||||||||||||||||||
AL Community College System Gadsden State Community College | 5.000 | % | 06/01/2038 | A1 | $ | 325,000 | $ | 395,649 | ||||||||||
Auburn University AL General Fee Revenue | 4.000 | 06/01/2036 | Aa2 | 380,000 | 434,564 | |||||||||||||
Troy University AL Facilities Revenue | 5.000 | 11/01/2028 | A1 | 250,000 | 292,185 | |||||||||||||
Troy University AL Facilities Revenue | 4.000 | 11/01/2032 | A1 | 300,000 | 348,321 | |||||||||||||
Troy University AL Facilities Revenue | 5.000 | 11/01/2037 | A1 | 200,000 | 243,702 | |||||||||||||
University of AL Birmingham | 5.000 | 10/01/2037 | Aa2 | 225,000 | 251,237 | |||||||||||||
University of AL General Fee Revenue University of AL Huntsville | 5.000 | 09/01/2037 | Aa3 | 250,000 | 309,623 | |||||||||||||
University of AL Huntsville | 5.000 | 09/01/2038 | Aa3 | 500,000 | 625,870 | |||||||||||||
University of AL Huntsville General Fee Revenue | 5.000 | 09/01/2038 | Aa3 | 435,000 | 537,411 | |||||||||||||
|
| |||||||||||||||||
| 3,438,562 | ||||||||||||||||||
| PUBLIC FACILITIES REVENUE BONDS |
| |||||||||||||||||
| 11.68% of Net Assets | ||||||||||||||||||
Anniston AL Public Building Authority DHR Project | 5.250 | 05/01/2030 | AA-* | 50,000 | 50,134 | |||||||||||||
Anniston AL Public Building Authority DHR Project | 5.500 | 05/01/2033 | AA-* | 200,000 | 200,556 | |||||||||||||
Bessemer AL Public Educational Building Authority Revenue | 5.000 | 07/01/2030 | AA* | 140,000 | 140,365 | |||||||||||||
Birmingham Jefferson AL Civic Center Authority Revenue | 5.000 | 05/01/2037 | Aa3 | 500,000 | 613,300 | |||||||||||||
Birmingham Jefferson AL Civic Center Authority Revenue | 5.000 | 05/01/2038 | Aa3 | 250,000 | 305,685 | |||||||||||||
Boaz AL Warrants | 4.000 | 02/01/2037 | AA* | 250,000 | 289,483 | |||||||||||||
Bullock County AL Public Building Authority | 4.000 | 10/01/2038 | AA-* | 500,000 | 568,905 | |||||||||||||
Lowndes County AL Warrants | 5.250 | 02/01/2037 | A2 | 250,000 | 250,823 | |||||||||||||
Montgomery County AL Public Building Authority | 5.000 | 03/01/2036 | Aa2 | 350,000 | 437,248 | |||||||||||||
Phenix City AL Public Building Authority | 4.000 | 10/01/2035 | AA-* | 100,000 | 120,245 | |||||||||||||
Phenix City AL Public Building Authority | 4.000 | 10/01/2037 | AA-* | 120,000 | 143,210 | |||||||||||||
|
| |||||||||||||||||
| 3,119,954 | ||||||||||||||||||
| REFUNDING BONDS |
| |||||||||||||||||
| 5.47% of Net Assets |
| |||||||||||||||||
Montgomery AL Warrants | 5.000 | 06/15/2035 | A1 | 500,000 | 620,770 | |||||||||||||
Northport AL Warrants** | 5.000 | 08/01/2040 | AA-* | 735,000 | 839,899 | |||||||||||||
|
| |||||||||||||||||
| 1,460,669 | ||||||||||||||||||
| HOSPITAL AND HEALTHCARE REVENUE BONDS |
| |||||||||||||||||
| 2.38% of Net Assets |
| |||||||||||||||||
Chilton County AL Health Care Authority Chilton County Hospital** | 5.000 | 11/01/2035 | AA-@ | 550,000 | 635,245 | |||||||||||||
|
| |||||||||||||||||
| TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS |
| |||||||||||||||||
| 2.35% of Net Assets | ||||||||||||||||||
AL Federal Aid Highway Finance Authority | 4.000 | 06/01/2037 | Aa1 | 250,000 | 294,190 | |||||||||||||
AL State Highway Finance Corporation | 5.000 | 08/01/2040 | Aa2 | 250,000 | 333,090 | |||||||||||||
|
| |||||||||||||||||
| 627,280 | ||||||||||||||||||
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS |
| |||||||||||||||||
| 2.28% of Net Assets | ||||||||||||||||||
Birmingham AL Warrants | 4.000 | 12/01/2035 | Aa3 | 250,000 | 295,250 | |||||||||||||
Birmingham AL Warrants | 5.000 | 12/01/2037 | Aa3 | 250,000 | 314,393 | |||||||||||||
|
| |||||||||||||||||
| 609,643 | ||||||||||||||||||
|
| |||||||||||||||||
Total Investments 98.66% of Net Assets (cost $24,313,626) (See (a) below for further explanation) |
| $ | 26,352,805 | |||||||||||||||
|
| |||||||||||||||||
Other assets in excess of liabilities 1.34% | 358,417 | |||||||||||||||||
|
| |||||||||||||||||
Net Assets 100% | $ | 26,711,222 | ||||||||||||||||
|
| |||||||||||||||||
| # | Ratings by Moody’s Investors Service unless noted otherwise. |
| All ratings are as of the date indicated and do not reflect subsequent changes. |
| * | Rated by Standard & Poor’s Corporation |
| @ | Rated by Fitch’s Investors Service |
| NR | Not Rated |
| ** | Security is segregated — see footnote 1(D) |
The accompanying notes are an integral part of the financial statements.
2
Table of Contents
DUPREE MUTUAL FUNDS — ALABAMA TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Alabama Municipal Bonds
December 31, 2020
| (a) | Cost for federal income tax purposes is $24,313,626 and net unrealized appreciation of investments is as follows: |
| Unrealized appreciation | $ | 2,039,413 | ||||
| Unrealized depreciation | (234 | ) | ||||
|
| |||||
| Net unrealized appreciation | $ | 2,039,179 | ||||
|
|
Other Information
The following is a summary of the inputs used, as of December 31, 2020, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs | Municipal Bonds | |||||
Level 1 | Quoted Prices | $ | — | |||
Level 2 | Other Significant Observable Inputs | 26,352,805 | ||||
Level 3 | Significant Unobservable Inputs | — | ||||
|
| |||||
| $ | 26,352,805 | |||||
|
| |||||
The accompanying notes are an integral part of the financial statements.
3
Table of Contents
ALABAMA TAX-FREE INCOME SERIES
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2020 | UNAUDITED |
ASSETS: | ||||||||
Investments in securities, at fair value (Cost: $24,313,626) | $ | 26,352,805 | ||||||
Cash | 193,416 | |||||||
Interest receivable | 299,022 | |||||||
|
| |||||||
Total assets | 26,845,243 | |||||||
LIABILITIES: | ||||||||
Payable for: | ||||||||
Distributions to shareholders | 100,374 | |||||||
Fund shares redeemed | 6,097 | |||||||
Investment advisory fee | 6,407 | |||||||
Transfer agent fee | 7,268 | |||||||
Professional fees | 5,937 | |||||||
Custodian expense | 2,727 | |||||||
Trustee fees | 1,074 | |||||||
Accrued expenses | 4,137 | |||||||
|
| |||||||
Total liabilities | 134,021 | |||||||
|
| |||||||
NET ASSETS: | ||||||||
Capital | 24,671,535 | |||||||
Total distributable earnings | 2,039,687 | |||||||
|
| |||||||
Net assets at value | $ | 26,711,222 | ||||||
|
| |||||||
NET ASSET VALUE, offering price and redemption price per share | $ | 12.88 | ||||||
|
|
STATEMENT OF OPERATIONS
For the six months ended December 31, 2020
Net investment income: | ||||
Interest income | $ | 425,912 | ||
|
| |||
Expenses: |
| |||
Investment advisory fee | 69,822 | |||
Transfer agent fee | 19,782 | |||
Custodian expense | 4,703 | |||
Professional fees | 3,840 | |||
Compliance fees | 3,630 | |||
Pricing fees | 3,025 | |||
Registration fees | 2,554 | |||
Trustees fees | 1,377 | |||
Other expenses | 3,392 | |||
|
| |||
Total expenses | 112,125 | |||
Fees waived by Adviser (Note 2) | (14,342 | ) | ||
Custodian expense reduction | (9 | ) | ||
|
| |||
Net expenses | 97,774 | |||
|
| |||
Net investment income | 328,138 | |||
|
| |||
Realized and unrealized gain on investments: | ||||
Net realized gain | 71,913 | |||
Net change in unrealized appreciation/(depreciation) | 140,108 | |||
|
| |||
Net realized and unrealized gain on investments | 212,021 | |||
|
| |||
Net increase in net assets resulting from operations | $ | 540,159 | ||
|
| |||
The accompanying notes are an integral part of the financial statements.
4
Table of Contents
ALABAMA TAX-FREE INCOME SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended December 31, 2020 and the year ended June 30, 2020 | UNAUDITED |
| Six Months Ended 12/31/2020 | Year Ended 06/30/2020 | |||||||
Operations: | ||||||||
Net investment income | $ | 328,138 | $ | 680,102 | ||||
Net realized gain on investments | 71,913 | 18,246 | ||||||
Net change in unrealized appreciation/(depreciation) | 140,108 | 680,806 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 540,159 | 1,379,154 | ||||||
Total distributions | (328,138 | ) | (680,102 | ) | ||||
Net fund share transactions (Note 4) | (854,795 | ) | 501,183 | |||||
|
|
|
| |||||
Total increase/(decrease) | (642,774 | ) | 1,200,235 | |||||
Net assets: | ||||||||
Beginning of year | 27,353,996 | 26,153,761 | ||||||
|
|
|
| |||||
End of period | $ | 26,711,222 | $ | 27,353,996 | ||||
|
|
|
| |||||
FINANCIAL HIGHLIGHTS
| Selected data for a share outstanding: | Six Months Ended 12/31/2020 | For the years ended June 30, | ||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||
Net asset value, beginning of year | $12.78 | $12.43 | $12.08 | $12.29 | $12.77 | $12.36 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.15 | 0.33 | 0.34 | 0.36 | 0.37 | 0.39 | ||||||||||||||||||
Net gains/(losses) on investments | 0.10 | 0.35 | 0.35 | (0.21 | ) | (0.48 | ) | 0.41 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.25 | 0.68 | 0.69 | 0.15 | (0.11 | ) | 0.80 | |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Distributions from net investment income | (0.15 | ) | (0.33 | ) | (0.34 | ) | (0.36 | ) | (0.37 | ) | (0.39 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $12.88 | $12.78 | $12.43 | $12.08 | $12.29 | $12.77 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 1.98% | (b) | 5.49% | 5.80% | 1.24% | (0.82 | )% | 6.61% | ||||||||||||||||
Net assets, end of period (in thousands) | $26,711 | $27,354 | $26,154 | $25,255 | $26,555 | $29,378 | ||||||||||||||||||
Ratio of net expenses to average net assets (a) | 0.70% | (c) | 0.70% | 0.70% | 0.70% | 0.70% | 0.71% | |||||||||||||||||
Ratio of gross expenses to average net assets | 0.81% | (c) | 0.82% | 0.84% | 0.82% | 0.78% | 0.78% | |||||||||||||||||
Ratio of net investment income to average net assets | 2.37% | (c) | 2.58% | 2.79% | 2.96% | 3.00% | 3.14% | |||||||||||||||||
Portfolio turnover | 8.17% | (b) | 6.98% | 16.54% | 13.83% | 6.95% | 5.37% | |||||||||||||||||
| (a) | Percentages are after expense waivers and reductions by the Adviser and Custodian. The Adviser and Custodian have agreed not to seek recovery of these waivers and reductions. |
| (b) | Not annualized |
| (c) | Annualized |
The accompanying notes are an integral part of the financial statements.
5
Table of Contents
DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Kentucky Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS | ||||||||||||||||||
| 31.56% of Net Assets | ||||||||||||||||||
KY Association of Counties | 4.000 | % | 02/01/2028 | AA-* | $ | 345,000 | $ | 415,867 | ||||||||||
KY Association of Counties | 4.000 | 02/01/2029 | AA-* | 240,000 | 294,521 | |||||||||||||
KY Association of Counties | 5.000 | 02/01/2030 | AA-* | 35,000 | 35,085 | |||||||||||||
KY Association of Counties | 5.000 | 02/01/2032 | AA-* | 55,000 | 55,134 | |||||||||||||
KY Association of Counties | 4.000 | 02/01/2033 | AA-* | 420,000 | 479,174 | |||||||||||||
KY Association of Counties | 4.000 | 02/01/2034 | AA-* | 435,000 | 495,034 | |||||||||||||
KY Association of Counties | 4.000 | 02/01/2035 | AA-* | 690,000 | 804,492 | |||||||||||||
KY Association of Counties | 4.000 | 02/01/2035 | AA-* | 460,000 | 520,577 | |||||||||||||
KY Association of Counties | 4.000 | 02/01/2037 | AA-* | 745,000 | 862,658 | |||||||||||||
KY Association of Counties | 4.000 | 02/01/2038 | AA-* | 3,165,000 | 3,655,670 | |||||||||||||
KY Association of Counties | 4.000 | 02/01/2039 | AA-* | 1,000,000 | 1,151,430 | |||||||||||||
KY Bond Corporation Finance Program | 3.000 | 02/01/2036 | AA-* | 1,240,000 | 1,315,603 | |||||||||||||
KY Bond Corporation Finance Program | 5.500 | 02/01/2031 | AA-* | 1,115,000 | 1,119,839 | |||||||||||||
KY Bond Corporation Finance Program | 3.000 | 02/01/2032 | AA-* | 550,000 | 597,135 | |||||||||||||
KY Bond Corporation Finance Program | 3.000 | 02/01/2033 | AA-* | 1,010,000 | 1,085,376 | |||||||||||||
KY Bond Corporation Finance Program | 3.000 | 02/01/2034 | AA-* | 1,070,000 | 1,144,718 | |||||||||||||
KY Bond Corporation Finance Program | 3.000 | 02/01/2035 | AA-* | 1,170,000 | 1,246,904 | |||||||||||||
KY Bond Corporation Finance Program | 3.000 | 02/01/2038 | AA-* | 980,000 | 1,031,156 | |||||||||||||
KY State Property & Building #76 | 5.500 | 08/01/2021 | A1 | 1,400,000 | 1,441,468 | |||||||||||||
KY State Property & Building #105 | 4.750 | 04/01/2031 | A2 | 2,110,000 | 2,286,080 | |||||||||||||
KY State Property & Building #105 | 4.750 | 04/01/2032 | A2 | 2,205,000 | 2,387,464 | |||||||||||||
KY State Property & Building #105 | 4.750 | 04/01/2033 | A2 | 2,310,000 | 2,500,067 | |||||||||||||
KY State Property & Building #106 | 5.000 | 10/01/2028 | A1 | 2,030,000 | 2,262,597 | |||||||||||||
KY State Property & Building #106 | 5.000 | 10/01/2029 | A1 | 4,130,000 | 4,567,450 | |||||||||||||
KY State Property & Building #106 | 5.000 | 10/01/2030 | A1 | 7,165,000 | 7,905,360 | |||||||||||||
KY State Property & Building #106 | 5.000 | 10/01/2031 | A1 | 4,910,000 | 5,441,360 | |||||||||||||
KY State Property & Building #106 | 5.000 | 10/01/2032 | A1 | 6,275,000 | 6,910,846 | |||||||||||||
KY State Property & Building #106 | 5.000 | 10/01/2033 | A1 | 4,870,000 | 5,391,431 | |||||||||||||
KY State Property & Building #108 | 5.000 | 08/01/2026 | A1 | 955,000 | 1,137,520 | |||||||||||||
KY State Property & Building #108 | 5.000 | 08/01/2028 | A1 | 2,670,000 | 3,173,669 | |||||||||||||
KY State Property & Building #108 | 5.000 | 08/01/2030 | A1 | 5,000,000 | 5,881,450 | |||||||||||||
KY State Property & Building #108 | 5.000 | 08/01/2031 | A1 | 8,290,000 | 9,698,803 | |||||||||||||
KY State Property & Building #108 | 5.000 | 08/01/2032 | A1 | 8,820,000 | 10,314,549 | |||||||||||||
KY State Property & Building #108 | 5.000 | 08/01/2033 | A1 | 5,270,000 | 6,139,919 | |||||||||||||
KY State Property & Building #108 | 5.000 | 08/01/2034 | A1 | 4,900,000 | 5,682,775 | |||||||||||||
KY State Property & Building #110 | 5.000 | 08/01/2029 | A1 | 4,200,000 | 4,938,360 | |||||||||||||
KY State Property & Building #110 | 5.000 | 08/01/2032 | A1 | 1,515,000 | 1,771,717 | |||||||||||||
KY State Property & Building #110 | 5.000 | 08/01/2033 | A1 | 1,000,000 | 1,165,070 | |||||||||||||
KY State Property & Building #110 | 5.000 | 08/01/2034 | A1 | 1,900,000 | 2,203,525 | |||||||||||||
KY State Property & Building #110 | 5.000 | 08/01/2035 | A1 | 3,680,000 | 4,250,142 | |||||||||||||
KY State Property & Building #112 | 5.000 | 11/01/2028 | A1 | 2,765,000 | 3,377,862 | |||||||||||||
KY State Property & Building #112 | 5.000 | 02/01/2035 | A1 | 8,325,000 | 9,741,416 | |||||||||||||
KY State Property & Building #112 | 5.000 | 02/01/2036 | A1 | 7,920,000 | 9,225,295 | |||||||||||||
KY State Property & Building #115 | 5.000 | 04/01/2028 | A1 | 5,000,000 | 6,191,650 | |||||||||||||
KY State Property & Building #115 | 5.000 | 04/01/2033 | A1 | 4,565,000 | 5,502,605 | |||||||||||||
KY State Property & Building #115 | 5.000 | 04/01/2034 | A1 | 13,975,000 | 16,808,432 | |||||||||||||
KY State Property & Building #115 | 5.000 | 04/01/2036 | A1 | 14,460,000 | 17,353,587 | |||||||||||||
KY State Property & Building #115 | 5.000 | 04/01/2037 | A1 | 5,000,000 | 5,990,700 | |||||||||||||
KY State Property & Building #117 | 5.000 | 05/01/2031 | A1 | 5,055,000 | 6,185,045 | |||||||||||||
KY State Property & Building #117 | 5.000 | 05/01/2032 | A1 | 3,680,000 | 4,477,677 | |||||||||||||
KY State Property & Building #117 | 5.000 | 05/01/2033 | A1 | 3,550,000 | 4,297,950 | |||||||||||||
KY State Property & Building #117 | 5.000 | 05/01/2034 | A1 | 5,825,000 | 7,036,600 | |||||||||||||
KY State Property & Building #117 | 5.000 | 05/01/2035 | A1 | 5,065,000 | 6,104,946 | |||||||||||||
KY State Property & Building #117 | 5.000 | 05/01/2036 | A1 | 5,275,000 | 6,343,979 | |||||||||||||
KY State Property & Building #119 | 5.000 | 05/01/2030 | A1 | 3,685,000 | 4,626,886 | |||||||||||||
KY State Property & Building #119 | 5.000 | 05/01/2034 | A1 | 725,000 | 910,310 | |||||||||||||
KY State Property & Building #119 | 5.000 | 05/01/2035 | A1 | 10,000,000 | 12,335,800 | |||||||||||||
The accompanying notes are an integral part of the financial statements.
6
Table of Contents
DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Kentucky Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
KY State Property & Building #119 | 5.000 | % | 05/01/2036 | A1 | $ | 10,000,000 | $ | 12,266,000 | ||||||||||
KY State Property & Building #119 | 5.000 | 05/01/2037 | A1 | 770,000 | 940,324 | |||||||||||||
KY State Property & Building #122 | 5.000 | 11/01/2031 | A1 | 790,000 | 1,011,074 | |||||||||||||
KY State Property & Building #122 | 5.000 | 11/01/2033 | A1 | 1,000,000 | 1,252,710 | |||||||||||||
KY State Property & Building #122 | 4.000 | 11/01/2034 | A1 | 750,000 | 873,608 | |||||||||||||
KY State Property & Building #122 | 4.000 | 11/01/2035 | A1 | 1,500,000 | 1,743,645 | |||||||||||||
KY State Property & Building #122 | 4.000 | 11/01/2036 | A1 | 750,000 | 867,068 | |||||||||||||
KY State Property & Building #122 | 4.000 | 11/01/2037 | A1 | 1,750,000 | 2,017,645 | |||||||||||||
KY State Property & Building #122 | 4.000 | 11/01/2037 | A1 | 675,000 | 783,567 | |||||||||||||
KY State Property & Building #122 | 4.000 | 11/01/2038 | A1 | 5,845,000 | 6,725,140 | |||||||||||||
KY State Property & Building #122 | 4.000 | 11/01/2039 | A1 | 9,655,000 | 11,086,161 | |||||||||||||
KY State Property & Building #124 | 5.000 | 11/01/2037 | A1 | 7,530,000 | 9,810,912 | |||||||||||||
KY State Property & Building #124 | 5.000 | 11/01/2038 | A1 | 7,915,000 | 10,312,533 | |||||||||||||
KY State Property & Building #124 | 5.000 | 11/01/2039 | A1 | 8,325,000 | 10,846,724 | |||||||||||||
Louisville & Jefferson County Visitors & Convention Commission | 4.000 | 06/01/2034 | Aa3 | 3,720,000 | 3,967,901 | |||||||||||||
|
| |||||||||||||||||
| 314,777,747 | ||||||||||||||||||
| SCHOOL IMPROVEMENT BONDS |
| |||||||||||||||||
| 14.69% of Net Assets | ||||||||||||||||||
Bowling Green KY School District Finance Corporation | 4.000 | 08/01/2034 | A1 | 1,890,000 | 2,145,396 | |||||||||||||
Bowling Green KY School District Finance Corporation | 4.000 | 08/01/2035 | A1 | 2,215,000 | 2,505,431 | |||||||||||||
Bowling Green KY School District Finance Corporation | 4.000 | 08/01/2036 | A1 | 2,305,000 | 2,600,639 | |||||||||||||
Bowling Green KY School District Finance Corporation | 4.000 | 08/01/2037 | A1 | 2,395,000 | 2,696,722 | |||||||||||||
Bullitt County KY School District Finance Corporation | 4.000 | 10/01/2035 | A1 | 1,820,000 | 2,065,427 | |||||||||||||
Bullitt County KY School District Finance Corporation | 4.000 | 10/01/2036 | A1 | 2,985,000 | 3,375,229 | |||||||||||||
Bullitt County KY School District Finance Corporation | 4.000 | 10/01/2037 | A1 | 3,075,000 | 3,466,202 | |||||||||||||
Fayette County KY School District Finance Corporation | 5.000 | 08/01/2028 | Aa3 | 1,330,000 | 1,587,515 | |||||||||||||
Fayette County KY School District Finance Corporation | 5.000 | 10/01/2028 | Aa3 | 1,375,000 | 1,536,948 | |||||||||||||
Fayette County KY School District Finance Corporation | 5.000 | 10/01/2029 | Aa3 | 3,660,000 | 4,084,670 | |||||||||||||
Fayette County KY School District Finance Corporation | 4.750 | 11/01/2031 | Aa3 | 1,730,000 | 1,967,754 | |||||||||||||
Fayette County KY School District Finance Corporation | 5.000 | 08/01/2032 | Aa3 | 10,600,000 | 12,494,750 | |||||||||||||
Fayette County KY School District Finance Corporation | 5.000 | 10/01/2032 | Aa3 | 3,615,000 | 4,042,871 | |||||||||||||
Fayette County KY School District Finance Corporation | 5.000 | 10/01/2033 | Aa3 | 4,385,000 | 4,877,260 | |||||||||||||
Fayette County KY School District Finance Corporation | 5.000 | 08/01/2034 | Aa3 | 8,750,000 | 10,344,250 | |||||||||||||
Hardin County KY School District Finance Corporation | 4.000 | 05/01/2030 | Aa3 | 635,000 | 732,263 | |||||||||||||
Jefferson County KY School District Finance Corporation | 5.000 | 04/01/2030 | Aa3 | 975,000 | 1,141,306 | |||||||||||||
Jefferson County KY School District Finance Corporation | 4.000 | 05/01/2030 | Aa3 | 2,000,000 | 2,205,220 | |||||||||||||
Jefferson County KY School District Finance Corporation | 5.000 | 04/01/2031 | Aa3 | 1,025,000 | 1,208,291 | |||||||||||||
Jefferson County KY School District Finance Corporation | 5.000 | 05/01/2032 | Aa3 | 4,230,000 | 4,793,732 | |||||||||||||
Jefferson County KY School District Finance Corporation | 4.000 | 06/01/2032 | Aa3 | 4,120,000 | 4,711,591 | |||||||||||||
Jefferson County KY School District Finance Corporation | 5.000 | 05/01/2033 | Aa3 | 5,145,000 | 5,834,276 | |||||||||||||
Jefferson County KY School District Finance Corporation | 4.000 | 06/01/2033 | Aa3 | 4,310,000 | 4,921,546 | |||||||||||||
Jefferson County KY School District Finance Corporation | 4.750 | 04/01/2034 | Aa3 | 1,165,000 | 1,354,779 | |||||||||||||
Jefferson County KY School District Finance Corporation | 5.000 | 05/01/2034 | Aa3 | 5,405,000 | 6,119,595 | |||||||||||||
Jefferson County KY School District Finance Corporation | 4.000 | 06/01/2034 | Aa3 | 3,500,000 | 3,980,900 | |||||||||||||
Jefferson County KY School District Finance Corporation | 4.750 | 04/01/2035 | Aa3 | 1,220,000 | 1,415,407 | |||||||||||||
Jefferson County KY School District Finance Corporation | 4.250 | 10/01/2037 | Aa3 | 2,110,000 | 2,439,814 | |||||||||||||
Kenton County KY School District Finance Corporation | 4.000 | 04/01/2036 | A1 | 1,210,000 | 1,409,819 | |||||||||||||
Kenton County KY School District Finance Corporation | 4.000 | 04/01/2037 | A1 | 1,255,000 | 1,458,511 | |||||||||||||
Kenton County KY School District Finance Corporation | 4.000 | 04/01/2038 | A1 | 1,300,000 | 1,508,884 | |||||||||||||
Meade County KY School District Finance Corporation | 4.000 | 06/01/2036 | A1 | 2,215,000 | 2,500,802 | |||||||||||||
Meade County KY School District Finance Corporation | 4.000 | 06/01/2037 | A1 | 2,255,000 | 2,534,710 | |||||||||||||
Meade County KY School District Finance Corporation | 4.000 | 06/01/2038 | A1 | 2,400,000 | 2,688,432 | |||||||||||||
Morgan County KY School District Finance Corporation | 4.000 | 08/01/2029 | A1 | 960,000 | 1,127,664 | |||||||||||||
Oldham County KY School District Finance Corporation | 4.000 | 10/01/2034 | A1 | 1,560,000 | 1,769,446 | |||||||||||||
Scott County KY School District Finance Corporation | 4.500 | 01/01/2025 | A1 | 4,890,000 | 5,627,999 | |||||||||||||
Scott County KY School District Finance Corporation | 4.000 | 02/01/2029 | Aa3 | 5,040,000 | 6,163,114 | |||||||||||||
Scott County KY School District Finance Corporation | 4.000 | 06/01/2035 | Aa3 | 1,440,000 | 1,625,803 | |||||||||||||
Scott County KY School District Finance Corporation | 4.000 | 10/01/2035 | Aa3 | 2,235,000 | 2,537,708 | |||||||||||||
The accompanying notes are an integral part of the financial statements.
7
Table of Contents
DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Kentucky Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
Scott County KY School District Finance Corporation | 4.000 | % | 06/01/2036 | Aa3 | $ | 1,500,000 | $ | 1,694,385 | ||||||||||
Scott County KY School District Finance Corporation | 4.000 | 10/01/2037 | Aa3 | 2,415,000 | 2,729,310 | |||||||||||||
Shelby County KY School District Finance Corporation | 4.000 | 08/01/2037 | Aa3 | 6,240,000 | 7,058,189 | |||||||||||||
Shelby County KY School District Finance Corporation | 4.000 | 08/01/2038 | Aa3 | 3,000,000 | 3,386,490 | |||||||||||||
|
| |||||||||||||||||
| 146,471,050 | ||||||||||||||||||
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS |
| |||||||||||||||||
| 11.99% of Net Assets | ||||||||||||||||||
Boyle County Centre College | 5.000 | 06/01/2037 | A3 | 2,865,000 | 3,350,045 | |||||||||||||
KY Bond Development Corporation Educational Facilities Centre College | 5.000 | 06/01/2033 | A3 | 1,345,000 | 1,634,229 | |||||||||||||
KY Bond Development Corporation Educational Facilities Centre College | 5.000 | 06/01/2034 | A3 | 1,605,000 | 1,930,430 | |||||||||||||
KY Bond Development Corporation Educational Facilities Centre College | 5.000 | 06/01/2035 | A3 | 2,165,000 | 2,597,372 | |||||||||||||
KY Bond Development Corporation Educational Facilities Centre College | 5.000 | 06/01/2036 | A3 | 2,835,000 | 3,379,717 | |||||||||||||
KY Bond Development Corporation Educational Facilities Centre College | 5.000 | 06/01/2038 | A3 | 1,340,000 | 1,587,391 | |||||||||||||
KY State Property & Building #114 | 5.000 | 10/01/2032 | A1 | 2,795,000 | 3,360,960 | |||||||||||||
KY State Property & Building #114 | 5.000 | 10/01/2033 | A1 | 2,940,000 | 3,524,501 | |||||||||||||
KY State Property & Building #114 | 5.000 | 10/01/2034 | A1 | 3,090,000 | 3,687,359 | |||||||||||||
KY State Property & Building #114 | 5.000 | 10/01/2035 | A1 | 1,945,000 | 2,313,908 | |||||||||||||
KY State Property & Building #116 | 5.000 | 10/01/2035 | A1 | 4,165,000 | 5,145,566 | |||||||||||||
KY State Property & Building #116 | 5.000 | 10/01/2036 | A1 | 2,725,000 | 3,340,905 | |||||||||||||
Murray State University | 5.000 | 03/01/2032 | A1 | 2,220,000 | 2,581,483 | |||||||||||||
University of Kentucky Certificate of Participation | 4.000 | 05/01/2033 | Aa3 | 885,000 | 1,052,354 | |||||||||||||
University of Kentucky Certificate of Participation | 4.000 | 05/01/2034 | Aa3 | 1,020,000 | 1,209,383 | |||||||||||||
University of Kentucky Certificate of Participation | 4.000 | 05/01/2044 | Aa3 | 3,755,000 | 4,338,114 | |||||||||||||
University of Kentucky Certificate of Participation | 4.000 | 05/01/2039 | Aa3 | 4,660,000 | 5,453,878 | |||||||||||||
University of Kentucky General Receipts | 5.000 | 04/01/2030 | Aa2 | 5,490,000 | 6,499,555 | |||||||||||||
University of Kentucky General Receipts | 5.000 | 04/01/2036 | Aa2 | 6,390,000 | 7,258,082 | |||||||||||||
University of Kentucky General Receipts | 4.000 | 10/01/2036 | Aa2 | 16,160,000 | 18,261,770 | |||||||||||||
University of Kentucky General Receipts | 5.000 | 04/01/2037 | Aa2 | 7,180,000 | 8,157,844 | |||||||||||||
University of Kentucky General Receipts | 5.000 | 04/01/2038 | Aa2 | 7,395,000 | 8,394,434 | |||||||||||||
University of Kentucky General Receipts | 4.000 | 10/01/2038 | Aa2 | 10,855,000 | 12,144,247 | |||||||||||||
University of Kentucky Higher Educational | 4.750 | 04/01/2034 | Aa2 | 5,435,000 | 6,345,145 | |||||||||||||
Western KY University | 4.000 | 09/01/2034 | A1 | 575,000 | 653,476 | |||||||||||||
Western KY University | 4.000 | 09/01/2035 | A1 | 595,000 | 674,819 | |||||||||||||
Western KY University | 4.000 | 09/01/2036 | A1 | 620,000 | 701,728 | |||||||||||||
|
| |||||||||||||||||
| 119,578,695 | ||||||||||||||||||
| MUNICIPAL UTILITY REVENUE BONDS |
| |||||||||||||||||
| 11.41% of Net Assets | ||||||||||||||||||
Campbell & Kenton County Sanitation District #1 | 4.000 | 08/01/2032 | Aa2 | 6,100,000 | 7,102,108 | |||||||||||||
Frankfort KY Electric & Water | 4.750 | 12/01/2034 | AA* | 695,000 | 792,265 | |||||||||||||
Frankfort KY Electric & Water | 4.750 | 12/01/2035 | AA* | 725,000 | 824,369 | |||||||||||||
Frankfort KY Electric & Water | 4.750 | 12/01/2036 | AA* | 760,000 | 861,984 | |||||||||||||
Frankfort KY Electric & Water | 4.750 | 12/01/2037 | AA* | 800,000 | 908,008 | |||||||||||||
Frankfort KY Electric & Water | 4.750 | 12/01/2038 | AA* | 835,000 | 946,022 | |||||||||||||
KY Bond Development Corporation | 5.000 | 09/01/2030 | A2 | 2,515,000 | 3,368,013 | |||||||||||||
KY Bond Development Corporation | 5.000 | 09/01/2031 | A2 | 2,645,000 | 3,533,932 | |||||||||||||
KY Bond Development Corportatin | 5.000 | 09/01/2032 | A2 | 2,780,000 | 3,685,863 | |||||||||||||
KY Rural Water Financing Corporation | 4.500 | 02/01/2023 | A+* | 1,085,000 | 1,176,965 | |||||||||||||
KY Rural Water Financing Corporation | 4.500 | 02/01/2024 | A+* | 880,000 | 954,589 | |||||||||||||
KY Rural Water Financing Corporation | 5.125 | 02/01/2035 | A+* | 295,000 | 295,564 | |||||||||||||
KY State Association of Counties Finance Corporation | 4.000 | 02/01/2031 | AA-* | 405,000 | 479,666 | |||||||||||||
KY State Association of Counties Finance Corporation | 4.000 | 02/01/2033 | AA-* | 415,000 | 486,600 | |||||||||||||
Louisville & Jefferson County Metropolitan Sewer | 4.000 | 05/15/2030 | Aa3 | 3,120,000 | 3,673,925 | |||||||||||||
Louisville & Jefferson County Metropolitan Sewer | 4.000 | 05/15/2033 | Aa3 | 1,000,000 | 1,108,430 | |||||||||||||
Louisville & Jefferson County Metropolitan Sewer** | 5.000 | 05/15/2034 | Aa3 | 27,730,000 | 28,744,914 | |||||||||||||
Louisville & Jefferson County Metropolitan Sewer | 4.750 | 05/15/2034 | Aa3 | 2,230,000 | 2,577,189 | |||||||||||||
Louisville & Jefferson County Metropolitan Sewer | 5.000 | 05/15/2034 | Aa3 | 4,595,000 | 5,515,333 | |||||||||||||
Louisville & Jefferson County Metropolitan Sewer | 4.750 | 05/15/2035 | Aa3 | 2,245,000 | 2,591,718 | |||||||||||||
Louisville & Jefferson County Metropolitan Sewer | 5.000 | 05/15/2035 | Aa3 | 4,825,000 | 5,778,661 | |||||||||||||
The accompanying notes are an integral part of the financial statements.
8
Table of Contents
DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Kentucky Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
Louisville & Jefferson County Metropolitan Sewer | 4.750 | % | 05/15/2036 | Aa3 | $ | 2,795,000 | $ | 3,224,340 | ||||||||||
Louisville & Jefferson County Metropolitan Sewer | 4.000 | 05/15/2037 | Aa3 | 10,000,000 | 11,822,700 | |||||||||||||
Louisville & Jefferson County Metropolitan Sewer | 3.250 | 05/15/2046 | Aa3 | 2,450,000 | 2,635,759 | |||||||||||||
Northern KY Water District | 5.000 | 02/01/2026 | Aa2 | 1,000,000 | 1,051,690 | |||||||||||||
Northern KY Water District | 5.000 | 02/01/2027 | Aa2 | 4,315,000 | 4,536,575 | |||||||||||||
Northern KY Water District | 5.000 | 02/01/2033 | Aa2 | 3,580,000 | 3,593,960 | |||||||||||||
Owensboro KY Electric Light & Power | 4.000 | 01/01/2031 | A3 | 245,000 | 281,689 | |||||||||||||
Owensboro KY Electric Light & Power | 4.000 | 01/01/2033 | A3 | 275,000 | 312,447 | |||||||||||||
Owensboro KY Electric Light & Power | 4.000 | 01/01/2034 | A3 | 305,000 | 345,227 | |||||||||||||
Owensboro KY Electric Light & Power | 4.000 | 01/01/2035 | A3 | 200,000 | 225,404 | |||||||||||||
Owensboro KY Electric Light & Power | 4.000 | 01/01/2036 | A3 | 325,000 | 365,885 | |||||||||||||
Owensboro KY Electric Light & Power | 4.000 | 01/01/2037 | A3 | 410,000 | 459,844 | |||||||||||||
Owensboro KY Water Revenue | 4.000 | 09/15/2034 | A1 | 2,075,000 | 2,417,666 | |||||||||||||
Owensboro KY Water Revenue | 4.000 | 09/15/2035 | A1 | 2,155,000 | 2,497,430 | |||||||||||||
Owensboro KY Water Revenue | 4.000 | 09/15/2037 | A1 | 1,950,000 | 2,246,420 | |||||||||||||
Owensboro KY Water Revenue | 4.000 | 09/15/2039 | A1 | 2,125,000 | 2,436,376 | |||||||||||||
|
| |||||||||||||||||
| 113,859,530 | ||||||||||||||||||
| TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS |
| |||||||||||||||||
| 7.25% of Net Assets | ||||||||||||||||||
KY Asset Liability Commission Federal Highway | 5.000 | 09/01/2021 | A2 | 1,570,000 | 1,571,915 | |||||||||||||
KY Asset Liability Commission Federal Highway | 5.000 | 09/01/2022 | A2 | 3,500,000 | 3,504,235 | |||||||||||||
KY Asset Liability Commission Federal Highway | 5.250 | 09/01/2025 | A2 | 3,400,000 | 3,776,414 | |||||||||||||
KY Asset Liability Commission Federal Highway | 5.000 | 09/01/2027 | A2 | 9,760,000 | 11,738,254 | |||||||||||||
KY State Turnpike Economic Development Road Revenue | 5.000 | 07/01/2029 | Aa3 | 5,165,000 | 5,265,976 | |||||||||||||
KY State Turnpike Economic Development Road Revenue | 5.000 | 07/01/2029 | Aa3 | 7,235,000 | 7,650,289 | |||||||||||||
KY State Turnpike Economic Development Road Revenue | 5.000 | 07/01/2029 | Aa3 | 4,000,000 | 4,799,600 | |||||||||||||
KY State Turnpike Economic Development Road Revenue | 5.000 | 07/01/2030 | Aa3 | 1,845,000 | 1,880,406 | |||||||||||||
KY State Turnpike Economic Development Road Revenue | 5.000 | 07/01/2030 | Aa3 | 1,465,000 | 1,547,509 | |||||||||||||
KY State Turnpike Economic Development Road Revenue** | 5.000 | 07/01/2031 | Aa3 | 9,350,000 | 9,870,889 | |||||||||||||
KY State Turnpike Economic Development Road Revenue | 5.000 | 07/01/2032 | Aa3 | 1,315,000 | 1,516,419 | |||||||||||||
KY State Turnpike Economic Development Road Revenue | 5.000 | 07/01/2032 | Aa3 | 1,765,000 | 2,141,351 | |||||||||||||
KY State Turnpike Economic Development Road Revenue | 5.000 | 07/01/2032 | Aa3 | 8,755,000 | 9,231,972 | |||||||||||||
KY State Turnpike Economic Development Road Revenue | 5.000 | 07/01/2033 | Aa3 | 5,000,000 | 5,453,600 | |||||||||||||
KY State Turnpike Economic Development Road Revenue | 5.000 | 07/01/2034 | Aa3 | 1,120,000 | 1,318,430 | |||||||||||||
KY State Turnpike Economic Development Road Revenue | 5.000 | 07/01/2036 | Aa3 | 400,000 | 480,088 | |||||||||||||
KY State Turnpike Economic Development Road Revenue | 5.000 | 07/01/2037 | Aa3 | 500,000 | 598,410 | |||||||||||||
|
| |||||||||||||||||
| 72,345,757 | ||||||||||||||||||
| HOSPITAL AND HEALTHCARE REVENUE BONDS |
| |||||||||||||||||
| 5.96% of Net Assets | ||||||||||||||||||
KY Development Corporation Hospital Facilities — St. Elizabeth | 4.000 | 05/01/2032 | AA* | 1,810,000 | 2,059,002 | |||||||||||||
KY Development Corporation Hospital Facilities — St. Elizabeth | 4.000 | 05/01/2035 | AA* | 1,390,000 | 1,570,505 | |||||||||||||
KY Development Corporation Hospital Facilities — St. Elizabeth | 4.000 | 05/01/2036 | AA* | 1,200,000 | 1,348,608 | |||||||||||||
KY Development Corporation Hospital Facilities — St. Elizabeth | 5.000 | 05/01/2039 | AA* | 7,185,000 | 8,445,034 | |||||||||||||
Lexington Fayette Urban County Government | 5.250 | 06/01/2032 | A1 | 1,500,000 | 1,524,165 | |||||||||||||
Lexington Fayette Urban County Government Healthcare | 5.250 | 06/01/2028 | A1 | 1,000,000 | 1,016,770 | |||||||||||||
Lexington Fayette Urban County Government Public Facilities | 5.000 | 06/01/2033 | A1 | 5,260,000 | 5,336,533 | |||||||||||||
Louisville & Jefferson County Norton Healthcare | 5.500 | 10/01/2033 | A* | 2,000,000 | 2,227,880 | |||||||||||||
Louisville & Jefferson County Norton Healthcare | 5.000 | 10/01/2033 | A* | 6,810,000 | 8,188,957 | |||||||||||||
Louisville & Jefferson County Norton Healthcare | 4.000 | 10/01/2035 | A* | 3,850,000 | 4,342,030 | |||||||||||||
Louisville & Jefferson County Norton Healthcare | 4.000 | 10/01/2036 | A* | 7,005,000 | 7,879,784 | |||||||||||||
Louisville & Jefferson County Norton Healthcare | 4.000 | 10/01/2039 | A* | 4,500,000 | 5,266,305 | |||||||||||||
Louisville & Jefferson County Norton Healthcare | 4.000 | 10/01/2040 | A* | 2,000,000 | 2,333,560 | |||||||||||||
Warren County KY Hospital | 5.000 | 04/01/2028 | A+* | 6,225,000 | 6,800,937 | |||||||||||||
Warren County KY Hospital | 5.000 | 04/01/2035 | A+* | 1,025,000 | 1,106,190 | |||||||||||||
|
| |||||||||||||||||
| 59,446,260 | ||||||||||||||||||
The accompanying notes are an integral part of the financial statements.
9
Table of Contents
DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Kentucky Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
| PUBLIC FACILITIES REVENUE BONDS |
| |||||||||||||||||
| 5.79% of Net Assets | ||||||||||||||||||
KY Bond Development | 5.000 | % | 09/01/2035 | A2 | $ | 1,275,000 | $ | 1,538,543 | ||||||||||
KY Bond Development | 5.000 | 09/01/2036 | A2 | 2,000,000 | 2,407,120 | |||||||||||||
KY Bond Development | 5.000 | 09/01/2038 | A2 | 1,125,000 | 1,346,085 | |||||||||||||
KY State Certificate of Participation | 4.000 | 04/15/2030 | A1 | 1,500,000 | 1,783,050 | |||||||||||||
KY State Certificate of Participation | 4.000 | 04/15/2031 | A1 | 1,350,000 | 1,594,445 | |||||||||||||
KY State Certificate of Participation | 5.000 | 06/15/2034 | A1 | 1,640,000 | 1,901,072 | |||||||||||||
KY State Certificate of Participation | 5.000 | 04/15/2038 | A1 | 5,000,000 | 6,172,800 | |||||||||||||
KY State Certificate of Participation | 5.000 | 06/15/2038 | A1 | 7,535,000 | 8,667,506 | |||||||||||||
Laurel County General Obligation | 4.000 | 05/01/2031 | A2 | 1,295,000 | 1,507,756 | |||||||||||||
Laurel County General Obligation | 4.000 | 05/01/2034 | A2 | 1,440,000 | 1,650,139 | |||||||||||||
Laurel County General Obligation | 4.000 | 05/01/2035 | A2 | 1,495,000 | 1,710,265 | |||||||||||||
Laurel County General Obligation | 4.000 | 05/01/2036 | A2 | 1,555,000 | 1,778,905 | |||||||||||||
Laurel County General Obligation | 4.000 | 05/01/2037 | A2 | 1,620,000 | 1,843,835 | |||||||||||||
Laurel County General Obligation | 4.000 | 05/01/2038 | A2 | 1,680,000 | 1,907,808 | |||||||||||||
Laurel County KY Judicial Center | 5.000 | 03/01/2025 | A1 | 500,000 | 580,750 | |||||||||||||
Lexington Fayette Urban County Government — Court Facilities | 4.000 | 10/01/2030 | A1 | 785,000 | 906,761 | |||||||||||||
Louisville & Jefferson County Visitors & Convention Commission | 4.000 | 06/01/2032 | Aa3 | 2,725,000 | 2,945,180 | |||||||||||||
Marshall County Library | 4.000 | 06/01/2038 | Aa3 | 1,060,000 | 1,223,632 | |||||||||||||
Nicholasville KY General Obligation | 3.500 | 05/01/2030 | AA* | 1,480,000 | 1,702,577 | |||||||||||||
Nicholasville KY General Obligtion | 5.000 | 02/01/2029 | AA* | 1,160,000 | 1,518,765 | |||||||||||||
River City, Inc. Parking Authority | 4.750 | 06/01/2027 | Aa3 | 750,000 | 823,613 | |||||||||||||
River City, Inc. Parking Authority | 4.750 | 06/01/2028 | Aa3 | 940,000 | 1,030,588 | |||||||||||||
River City, Inc. Parking Authority | 4.750 | 06/01/2029 | Aa3 | 1,160,000 | 1,270,908 | |||||||||||||
River City, Inc. Parking Authority | 4.750 | 06/01/2029 | Aa3 | 980,000 | 1,073,698 | |||||||||||||
River City, Inc. Parking Authority | 4.750 | 06/01/2030 | Aa3 | 1,025,000 | 1,121,453 | |||||||||||||
River City, Inc. Parking Authority | 4.750 | 06/01/2031 | Aa3 | 1,270,000 | 1,388,542 | |||||||||||||
River City, Inc. Parking Authority | 5.000 | 06/01/2031 | Aa3 | 1,080,000 | 1,188,616 | |||||||||||||
River City, Inc. Parking Authority | 5.000 | 06/01/2032 | Aa3 | 1,130,000 | 1,242,503 | |||||||||||||
River City, Inc. Parking Authority | 5.000 | 06/01/2033 | Aa3 | 1,395,000 | 1,533,175 | |||||||||||||
Warren County KY Downtown Economic Development Authority | 5.000 | 06/01/2038 | AA-* | 2,345,000 | 2,443,373 | |||||||||||||
|
| |||||||||||||||||
| 57,803,463 | ||||||||||||||||||
| PREREFUNDED BONDS | ||||||||||||||||||
| 5.57% of Net Assets | ||||||||||||||||||
Bracken County KY Public Property | 5.000 | 08/01/2029 | A1 | 840,000 | 863,444 | |||||||||||||
Bracken County KY Public Property | 5.000 | 08/01/2030 | A1 | 1,110,000 | 1,140,914 | |||||||||||||
Fayette County KY School District Finance Corporation | 5.000 | 06/01/2031 | Aa3 | 3,705,000 | 3,779,656 | |||||||||||||
Franklin County KY Public Properties Justice Center | 5.000 | 04/01/2029 | A1 | 2,630,000 | 2,661,113 | |||||||||||||
Hardin County KY School District Finance Corporation | 5.000 | 05/01/2030 | A1 | 450,000 | 457,101 | |||||||||||||
Hardin County KY School District Finance Corporation | 5.000 | 05/01/2031 | A1 | 470,000 | 477,417 | |||||||||||||
KY State Property & Building #100 | 5.000 | 08/01/2027 | A1 | 610,000 | 626,879 | |||||||||||||
KY State Property & Building #100 | 5.000 | 08/01/2030 | A1 | 9,980,000 | 10,256,146 | |||||||||||||
KY State Property & Building #100 | 5.000 | 08/01/2031 | A1 | 5,100,000 | 5,241,117 | |||||||||||||
Lexington Fayette Urban County Airport Board | 5.000 | 07/01/2028 | Aa2 | 1,170,000 | 1,254,802 | |||||||||||||
Lexington Fayette Urban County Airport Board | 5.000 | 07/01/2030 | Aa2 | 1,250,000 | 1,340,413 | |||||||||||||
Lexington Fayette Urban County Airport Board | 5.000 | 07/01/2032 | Aa2 | 1,430,000 | 1,533,646 | |||||||||||||
Lexington Fayette Urban County Airport Board | 5.000 | 07/01/2033 | Aa2 | 1,520,000 | 1,630,170 | |||||||||||||
Lexington Fayette Urban County Airport Board | 5.000 | 07/01/2038 | Aa2 | 1,720,000 | 1,844,666 | |||||||||||||
Lexington Fayette Urban County Government | 5.000 | 01/01/2028 | Aa2 | 820,000 | 975,652 | |||||||||||||
Lexington Fayette Urban County Government | 5.000 | 01/01/2029 | Aa2 | 345,000 | 410,488 | |||||||||||||
Lexington Fayette Urban County Government | 5.000 | 01/01/2033 | Aa2 | 1,685,000 | 2,004,845 | |||||||||||||
Louisville & Jefferson County Catholic Health Initiatives** | 5.000 | 12/01/2035 | NR | 11,290,000 | 12,049,591 | |||||||||||||
Louisville & Jefferson County Metropolitan Sewer | 5.000 | 05/15/2031 | Aa3 | 2,465,000 | 2,743,619 | |||||||||||||
Owensboro KY Public Property | 4.500 | 04/01/2034 | A1 | 1,165,000 | 1,177,722 | |||||||||||||
University of Louisville General Receipts | 5.000 | 09/01/2030 | Baa1 | 440,000 | 453,851 | |||||||||||||
University of Louisville General Receipts | 5.000 | 09/01/2031 | Baa1 | 2,580,000 | 2,661,915 | |||||||||||||
|
| |||||||||||||||||
| 55,585,167 | ||||||||||||||||||
The accompanying notes are an integral part of the financial statements.
10
Table of Contents
DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Kentucky Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
| REFUNDING BONDS | ||||||||||||||||||
| 2.92% of Net Assets | ||||||||||||||||||
KY State Property & Building #84 | 5.000 | % | 08/01/2021 | A1 | $ | 310,000 | $ | 318,131 | ||||||||||
KY State Property & Building #84 | 5.000 | 08/01/2022 | A1 | 18,000,000 | 19,293,660 | |||||||||||||
KY State Property & Building #102 | 5.000 | 05/01/2024 | Aa3 | 405,000 | 438,603 | |||||||||||||
KY State Property & Building #108 | 5.000 | 08/01/2025 | A1 | 2,690,000 | 3,214,846 | |||||||||||||
KY State Property & Building #121 | 5.000 | 02/01/2029 | A1 | 4,535,000 | 5,899,309 | |||||||||||||
|
| |||||||||||||||||
| 29,164,549 | ||||||||||||||||||
| AIRPORT REVENUE BONDS | ||||||||||||||||||
| .74% of Net Assets | ||||||||||||||||||
Kenton County Airport | 5.000 | 01/01/2029 | A1 | 240,000 | 286,706 | |||||||||||||
Kenton County Airport | 5.000 | 01/01/2034 | A1 | 275,000 | 349,440 | |||||||||||||
Kenton County Airport | 5.000 | 01/01/2035 | A1 | 300,000 | 380,169 | |||||||||||||
Kenton County Airport | 5.000 | 01/01/2036 | A1 | 965,000 | 1,217,068 | |||||||||||||
Kenton County Airport | 5.000 | 01/01/2037 | A1 | 670,000 | 842,136 | |||||||||||||
Kenton County Airport | 5.000 | 01/01/2038 | A1 | 500,000 | 627,180 | |||||||||||||
Kenton County Airport | 5.000 | 01/01/2039 | A1 | 500,000 | 625,900 | |||||||||||||
Kenton County Airport | 5.000 | 01/01/2044 | A1 | 2,500,000 | 3,091,475 | |||||||||||||
|
| |||||||||||||||||
| 7,420,074 | ||||||||||||||||||
| AD VALOREM PROPERTY BONDS | ||||||||||||||||||
| .14% of Net Assets | ||||||||||||||||||
Warren County General Obligation | 4.000 | 06/01/2035 | Aa1 | 1,175,000 | 1,367,336 | |||||||||||||
|
| |||||||||||||||||
| STATE AND LOCAL MORTGAGE/HOUSING REVENUE BONDS |
| |||||||||||||||||
| .11% of Net Assets | ||||||||||||||||||
Greater KY Housing Assistance Corporation — Chenowith Woods | 6.100 | 01/01/2024 | Baa2 | 160,000 | 160,328 | |||||||||||||
KY Housing Corporation Country Place Apartments | 4.750 | 04/20/2031 | AA+* | 935,000 | 936,206 | |||||||||||||
|
| |||||||||||||||||
| 1,096,534 | ||||||||||||||||||
|
| |||||||||||||||||
Total Investments 98.13% of Net Assets (cost $910,389,351) (See (a) below for further explanation) |
| $ | 978,916,162 | |||||||||||||||
|
| |||||||||||||||||
Other assets in excess of liabilities 1.87% | 18,671,608 | |||||||||||||||||
|
| |||||||||||||||||
Net Assets 100% | $ | 997,587,770 | ||||||||||||||||
|
| |||||||||||||||||
| # | Ratings by Moody’s Investors Service unless noted otherwise. |
| All ratings are as of the date indicated and do not reflect subsequent changes. |
| * | Rated by Standard & Poor’s Corporation |
| @ | Rated by Fitch’s Investors Service |
| NR | Not Rated |
| ** | Security is segregated — see footnote 1(D) |
| (a) | Cost for federal income tax purposes is $910,389,351 and net unrealized appreciation of investments is as follows: |
| Unrealized appreciation | $ | 68,534,617 | ||||
| Unrealized depreciation | (7,806 | ) | ||||
|
| |||||
| Net unrealized appreciation | $ | 68,526,811 | ||||
|
|
Other Information
The following is a summary of the inputs used, as of December 31, 2020, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs | Municipal Bonds | |||||
Level 1 | Quoted Prices | $ | — | |||
Level 2 | Other Significant Observable Inputs | 978,916,162 | ||||
Level 3 | Significant Unobservable Inputs | — | ||||
|
| |||||
| $ | 978,916,162 | |||||
|
| |||||
The accompanying notes are an integral part of the financial statements.
11
Table of Contents
KENTUCKY TAX-FREE INCOME SERIES
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2020 | UNAUDITED |
ASSETS: | ||||||||
Investments in securities, at fair value (Cost: $910,389,351) | $ | 978,916,162 | ||||||
Cash | 12,065,894 | |||||||
Receivable for fund shares sold | 105,457 | |||||||
Interest receivable | 10,893,329 | |||||||
|
| |||||||
Total assets | 1,001,980,842 | |||||||
LIABILITIES: | ||||||||
Payable for: | ||||||||
Distributions to shareholders | 2,930,423 | |||||||
Fund shares redeemed | 750,089 | |||||||
Investment advisory fee | 317,651 | |||||||
Transfer agent fee | 102,048 | |||||||
Professional fees | 154,356 | |||||||
Trustees fees | 41,512 | |||||||
Custodian expense | 12,298 | |||||||
Accrued expenses | 84,695 | |||||||
|
| |||||||
Total liabilities | 4,393,072 | |||||||
|
| |||||||
NET ASSETS: | ||||||||
Capital | 929,055,021 | |||||||
Total distributable earnings | 68,532,749 | |||||||
|
| |||||||
Net assets at value | $ | 997,587,770 | ||||||
|
| |||||||
NET ASSET VALUE, offering price and redemption price per share | $ | 8.01 | ||||||
|
|
STATEMENT OF OPERATIONS
For the six months ended December 31, 2020
Net investment income: | ||||
Interest income | $ | 15,235,320 | ||
|
| |||
Expenses: | ||||
Investment advisory fee | 1,872,220 | |||
Transfer agent fee | 600,688 | |||
Professional fees | 136,372 | |||
Custodian expense | 51,128 | |||
Trustees fees | 48,908 | |||
Pricing fees | 12,880 | |||
Compliance fees | 3,680 | |||
Registration fees | 2,165 | |||
Other expenses | 66,212 | |||
|
| |||
Total expenses | 2,794,253 | |||
Custodian expense reduction | (103 | ) | ||
|
| |||
Net expenses | 2,794,150 | |||
|
| |||
Net investment income | 12,441,170 | |||
|
| |||
Realized and unrealized gain on investments: | ||||
Net realized gain | 355,885 | |||
Net change in unrealized appreciation/(depreciation) | 19,311,301 | |||
|
| |||
Net realized and unrealized gain on investments | 19,667,186 | |||
|
| |||
Net increase in net assets resulting from operations | $ | 32,108,356 | ||
|
|
The accompanying notes are an integral part of the financial statements.
12
Table of Contents
KENTUCKY TAX-FREE INCOME SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended December 31, 2020 and the year ended June 30, 2020 | UNAUDITED |
| Six Months Ended 12/31/2020 | Year Ended 06/30/2020 | |||||||
Operations: | ||||||||
Net investment income | $ | 12,441,170 | $ | 25,818,863 | ||||
Net realized gain on investments | 355,885 | 360,854 | ||||||
Net change in unrealized appreciation/(depreciation) | 19,311,301 | 2,399,952 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 32,108,356 | 28,579,669 | ||||||
Total distributions | (12,946,628 | ) | (25,818,863 | ) | ||||
Net fund share transactions (Note 4) | 4,537,087 | 1,864,092 | ||||||
|
|
|
| |||||
Total increase | 23,698,815 | 4,624,898 | ||||||
Net assets: | ||||||||
Beginning of year | 973,888,955 | 969,264,057 | ||||||
|
|
|
| |||||
End of period | $ | 997,587,770 | $ | 973,888,955 | ||||
|
|
|
| |||||
FINANCIAL HIGHLIGHTS
| Selected data for a share outstanding: | Six Months Ended 12/31/2020 | For the years ended June 30, | ||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||
Net asset value, beginning of year | $7.86 | $7.83 | $7.60 | $7.76 | $8.06 | $7.83 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.10 | 0.21 | 0.22 | 0.23 | 0.24 | 0.25 | ||||||||||||||||||
Net gains/(losses) on securities | 0.15 | 0.03 | 0.24 | (0.16 | ) | (0.30 | ) | 0.23 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.25 | 0.24 | 0.46 | 0.07 | (0.06 | ) | 0.48 | |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Distributions from net investment income | (0.10 | ) | (0.21 | ) | (0.22 | ) | (0.23 | ) | (0.24 | ) | (0.25 | ) | ||||||||||||
Distributions from capital gains | 0.00 | (b) | 0.00 | (0.01 | ) | 0.00 | (b) | 0.00 | (b) | 0.00 | (b) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.10 | ) | (0.21 | ) | (0.23 | ) | (0.23 | ) | (0.24 | ) | (0.25 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $8.01 | $7.86 | $7.83 | $7.60 | $7.76 | $8.06 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 3.25% | (c) | 3.08% | 6.22% | 0.93% | (0.70 | )% | 6.25% | ||||||||||||||||
Net assets, end of period (in thousands) | $997,588 | $973,889 | $969,264 | $954,333 | $990,213 | $1,023,745 | ||||||||||||||||||
Ratio of net expenses to average net assets (a) | 0.57% | (d) | 0.56% | 0.57% | 0.56% | 0.55% | 0.55% | |||||||||||||||||
Ratio of gross expenses to average net assets | 0.57% | (d) | 0.56% | 0.57% | 0.56% | 0.55% | 0.55% | |||||||||||||||||
Ratio of net investment income to average net assets | 2.52% | (d) | 2.66% | 2.88% | 2.98% | 3.05% | 3.15% | |||||||||||||||||
Portfolio turnover | 3.18% | (c) | 4.59% | 10.23% | 16.81% | 10.44% | 11.53% | |||||||||||||||||
| (a) | Percentages are after custodian reduction for which no recovery will be sought. |
| (b) | Rounds to less than $0.01. |
| (c) | Not annualized |
| (d) | Annualized |
The accompanying notes are an integral part of the financial statements.
13
Table of Contents
DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE SHORT-TO-MEDIUM SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Kentucky Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
| SCHOOL IMPROVEMENT BONDS |
| |||||||||||||||||
| 22.07% of Net Assets | ||||||||||||||||||
Barren County KY School District Finance Corporation** | 5.000 | % | 08/01/2022 | A1 | $ | 930,000 | $ | 998,067 | ||||||||||
Barren County KY School District Finance Corporation | 5.000 | 08/01/2023 | A1 | 500,000 | 559,465 | |||||||||||||
Bowling Green KY Independent School District Finance Corporation | 5.000 | 08/01/2027 | A1 | 695,000 | 852,369 | |||||||||||||
Bullitt County KY School District Finance Corporation | 5.000 | 09/01/2022 | A1 | 300,000 | 323,370 | |||||||||||||
Fayette County KY School District Finance Corporation | 5.000 | 06/01/2023 | Aa3 | 500,000 | 555,130 | |||||||||||||
Fayette County KY School District Finance Corporation** | 5.000 | 08/01/2023 | Aa3 | 1,000,000 | 1,117,550 | |||||||||||||
Hardin County KY School District Finance Corporation | 5.000 | 03/01/2023 | A1 | 770,000 | 845,098 | |||||||||||||
Jefferson County KY School District Finance Corporation | 4.000 | 12/01/2023 | Aa3 | 500,000 | 551,375 | |||||||||||||
Jessamine County KY School District Finance Corporation | 5.000 | 02/01/2023 | A1 | 575,000 | 628,935 | |||||||||||||
Laurel County KY School District Finance Corporation | 4.000 | 06/01/2022 | A1 | 890,000 | 935,736 | |||||||||||||
Laurel County KY School District Finance Corporation | 4.000 | 06/01/2024 | A1 | 465,000 | 513,890 | |||||||||||||
Pike County KY School District Finance Corporation | 5.000 | 08/01/2024 | A1 | 250,000 | 289,228 | |||||||||||||
Pike County KY School District Finance Corporation | 5.000 | 02/01/2025 | A1 | 900,000 | 1,060,290 | |||||||||||||
Pike County KY School District Finance Corporation | 5.000 | 08/01/2025 | A1 | 200,000 | 239,824 | |||||||||||||
Pike County KY School District Finance Corporation | 4.000 | 02/01/2028 | A1 | 295,000 | 339,545 | |||||||||||||
Warren County KY School District Finance Corporation | 4.000 | 06/01/2022 | A1 | 725,000 | 761,410 | |||||||||||||
|
| |||||||||||||||||
| 10,571,282 | ||||||||||||||||||
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS | ||||||||||||||||||
| 19.22% of Net Assets | ||||||||||||||||||
KY State Property & Building #106 | 5.000 | 10/01/2021 | A1 | 750,000 | 775,688 | |||||||||||||
KY State Property & Building #106 | 5.000 | 10/01/2024 | A1 | 750,000 | 838,425 | |||||||||||||
KY State Property & Building #106 | 5.000 | 10/01/2025 | A1 | 2,365,000 | 2,649,745 | |||||||||||||
KY State Property & Building #106** | 5.000 | 10/01/2026 | A1 | 1,000,000 | 1,119,240 | |||||||||||||
KY State Property & Building #108 | 5.000 | 08/01/2023 | A1 | 875,000 | 976,658 | |||||||||||||
KY State Property & Building #108 | 5.000 | 08/01/2028 | A1 | 755,000 | 897,423 | |||||||||||||
KY State Property & Building #110 | 5.000 | 08/01/2023 | A1 | 1,750,000 | 1,953,315 | |||||||||||||
|
| |||||||||||||||||
| 9,210,494 | ||||||||||||||||||
| PUBLIC FACILITIES REVENUE BONDS | ||||||||||||||||||
| 17.59% of Net Assets | ||||||||||||||||||
KY State Certificate of Participation | 4.000 | 06/15/2023 | A1 | 940,000 | 1,020,435 | |||||||||||||
KY State Certificate of Participation | 4.000 | 06/15/2024 | A1 | 300,000 | 335,268 | |||||||||||||
KY State Property & Building #109** | 5.000 | 10/01/2022 | A1 | 1,000,000 | 1,080,320 | |||||||||||||
Laurel County KY Justice Center | 5.000 | 03/01/2023 | A1 | 600,000 | 652,524 | |||||||||||||
Lexington Fayette Urban County Government — Court Facilities | 5.000 | 10/01/2024 | A1 | 700,000 | 814,604 | |||||||||||||
Lexington Fayette Urban County Government — Court Facilities | 4.000 | 10/01/2030 | A1 | 755,000 | 872,108 | |||||||||||||
Livingston County KY Public Properties | 5.000 | 08/01/2022 | A1 | 375,000 | 402,446 | |||||||||||||
Livingston County KY Public Properties | 5.000 | 08/01/2024 | A1 | 555,000 | 641,869 | |||||||||||||
River City Parking Authority | 5.000 | 12/01/2024 | Aa3 | 340,000 | 399,269 | |||||||||||||
Taylor County KY Public Courthouse | 4.000 | 09/01/2027 | A1 | 700,000 | 810,803 | |||||||||||||
Warren County KY Justice Center Expansion Corporation** | 5.000 | 09/01/2023 | A1 | 1,250,000 | 1,397,400 | |||||||||||||
|
| |||||||||||||||||
| 8,427,046 | ||||||||||||||||||
| TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS | ||||||||||||||||||
| 9.48% of Net Assets | ||||||||||||||||||
KY Asset Liability Commission Federal Highway | 5.000 | 09/01/2024 | A2 | 500,000 | 584,230 | |||||||||||||
KY Asset Liability Commission Federal Highway | 5.000 | 09/01/2026 | A2 | 565,000 | 659,056 | |||||||||||||
KY Asset Liability Project Notes | 4.000 | 09/01/2023 | A2 | 250,000 | 273,428 | |||||||||||||
KY State Turnpike Authority Economic Development | 5.000 | 07/01/2024 | Aa3 | 1,175,000 | 1,343,235 | |||||||||||||
KY State Turnpike Authority Economic Development | 5.000 | 07/01/2026 | Aa3 | 1,385,000 | 1,681,584 | |||||||||||||
|
| |||||||||||||||||
| 4,541,533 | ||||||||||||||||||
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS |
| |||||||||||||||||
| 8.57% of Net Assets | ||||||||||||||||||
KY State Property & Building #116 | 5.000 | 10/01/2028 | A1 | 500,000 | 634,330 | |||||||||||||
University of Kentucky General Receipts | 4.000 | 04/01/2028 | Aa2 | 750,000 | 828,878 | |||||||||||||
University of Louisville | 5.000 | 03/01/2024 | A1 | 350,000 | 393,876 | |||||||||||||
University of Louisville** | 5.000 | 03/01/2024 | A1 | 2,000,000 | 2,250,720 | |||||||||||||
|
| |||||||||||||||||
| 4,107,804 | ||||||||||||||||||
The accompanying notes are an integral part of the financial statements.
14
Table of Contents
DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE SHORT-TO-MEDIUM SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Kentucky Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
| HOSPITAL AND HEALTHCARE REVENUE BONDS | ||||||||||||||||||
| 7.05% of Net Assets | ||||||||||||||||||
Lexington-Fayette Urban County Government | 5.000 | % | 06/01/2024 | A1 | $ | 2,800,000 | $ | 2,850,092 | ||||||||||
Warren County Hospital | 5.000 | 04/01/2023 | A+* | 500,000 | 529,645 | |||||||||||||
|
| |||||||||||||||||
| 3,379,737 | ||||||||||||||||||
| MUNICIPAL UTILITY REVENUE BONDS | ||||||||||||||||||
| 5.43% of Net Assets | ||||||||||||||||||
Campbell & Kenton Counties Sanitation District #1 | 4.000 | 08/01/2031 | Aa2 | 1,000,000 | 1,166,650 | |||||||||||||
Frankfort Electric & Water | 4.000 | 12/01/2023 | AA* | 440,000 | 485,074 | |||||||||||||
KY Rural Water Finance Corporation | 4.500 | 08/01/2021 | A+* | 35,000 | 35,066 | |||||||||||||
Northern KY Water | 5.000 | 02/01/2026 | Aa2 | 815,000 | 914,397 | |||||||||||||
|
| |||||||||||||||||
| 2,601,187 | ||||||||||||||||||
| REFUNDING BONDS | ||||||||||||||||||
| 4.04% of Net Assets | ||||||||||||||||||
KY State Property & Building #104** | 5.000 | % | 11/01/2021 | A2 | 1,000,000 | 1,036,000 | ||||||||||||
KY State Property & Building #108 | 5.000 | 08/01/2022 | A1 | 200,000 | 214,506 | |||||||||||||
KY State Property & Building #112 | 5.000 | 11/01/2026 | A1 | 555,000 | 685,802 | |||||||||||||
|
| |||||||||||||||||
| 1,936,308 | ||||||||||||||||||
| PREREFUNDED BONDS | ||||||||||||||||||
| 3.52% of Net Assets | ||||||||||||||||||
KY Infrastructure Authority Wastewater & Drinking Water | 5.000 | 02/01/2025 | Aaa | 175,000 | 184,125 | |||||||||||||
KY State Property & Building #100 | 5.000 | 08/01/2025 | A1 | 500,000 | 513,865 | |||||||||||||
KY Turnpike Ecomonic Development Road Revenue** | 5.000 | 07/01/2024 | Aa3 | 250,000 | 256,008 | |||||||||||||
KY Turnpike Economic Development Road Revenue | 5.000 | 07/01/2023 | Aa3 | 600,000 | 642,924 | |||||||||||||
KY Turnpike Economic Development Road Revenue | 5.000 | 07/01/2024 | Aa3 | 85,000 | 91,081 | |||||||||||||
|
| |||||||||||||||||
| 1,688,003 | ||||||||||||||||||
| AIRPORT REVENUE BONDS |
| |||||||||||||||||
| 1.26% of Net Assets | ||||||||||||||||||
Kenton County Airport | 5.000 | 01/01/2026 | A1 | 500,000 | 606,010 | |||||||||||||
|
| |||||||||||||||||
Total Investments 98.23% of Net Assets (cost $44,844,990) (See (a) below for further explanation) |
| $ | 47,069,404 | |||||||||||||||
|
| |||||||||||||||||
Other assets in excess of liabilities 1.77% | 850,286 | |||||||||||||||||
|
| |||||||||||||||||
Net Assets 100% | $ | 47,919,690 | ||||||||||||||||
|
| |||||||||||||||||
| # | Ratings by Moody’s Investors Service unless noted otherwise. |
| All ratings are as of the date indicated and do not reflect subsequent changes. |
| * | Rated by Standard & Poor’s Corporation |
| @ | Rated by Fitch’s Investors Service |
| NR | Not Rated |
| ** | Security is segregated — see footnote 1(D) |
| (a) | Cost for federal income tax purposes is $44,844,990 and net unrealized appreciation of investments is as follows: |
| Unrealized appreciation | $ | 2,224,414 | ||||
| Unrealized depreciation | — | |||||
|
| |||||
| Net unrealized appreciation | $ | 2,224,414 | ||||
|
|
Other Information
The following is a summary of the inputs used, as of December 31, 2020, involving the Fund’s investments in securities carried at fair value. The inputs or
methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs | Municipal Bonds | |||||
Level 1 | Quoted Prices | $ | — | |||
Level 2 | Other Significant Observable Inputs | 47,069,404 | ||||
Level 3 | Significant Unobservable Inputs | — | ||||
|
| |||||
| $ | 47,069,404 | |||||
|
| |||||
The accompanying notes are an integral part of the financial statements.
15
Table of Contents
KENTUCKY TAX-FREE SHORT-TO-MEDIUM SERIES
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2020 | UNAUDITED |
ASSETS: | ||||||||
Investments in securities, at fair value (Cost: $44,844,990) | $ | 47,069,404 | ||||||
Cash | 331,336 | |||||||
Interest receivable | 623,354 | |||||||
|
| |||||||
Total assets | 48,024,094 | |||||||
LIABILITIES: | ||||||||
Payable for: | ||||||||
Distributions to shareholders | 32,168 | |||||||
Fund shares redeemed | 842 | |||||||
Investment advisory fee | 16,969 | |||||||
Transfer agent fee | 6,389 | |||||||
Professional fees | 16,177 | |||||||
Custodian expense | 5,402 | |||||||
Trustees fees | 2,462 | |||||||
Accrued expenses | 23,995 | |||||||
|
| |||||||
Total liabilities | 104,404 | |||||||
|
| |||||||
NET ASSETS: | ||||||||
Capital | 45,802,626 | |||||||
Total distributable earnings | 2,117,064 | |||||||
|
| |||||||
Net assets at value | $ | 47,919,690 | ||||||
|
| |||||||
NET ASSET VALUE, offering price and redemption price per share | $ | 5.45 | ||||||
|
|
STATEMENT OF OPERATIONS
For the six months ended December 31, 2020
Net investment income: |
| |||
Interest income | $ | 569,923 | ||
|
| |||
Expenses: |
| |||
Investment advisory fee | 121,477 | |||
Transfer agent fee | 32,179 | |||
Professional fees | 6,729 | |||
Custodian expense | 6,473 | |||
Registration fees | 5,990 | |||
Compliance fees | 3,680 | |||
Pricing fees | 3,680 | |||
Trustees fees | 2,405 | |||
Other expenses | 7,626 | |||
|
| |||
Total expenses | 190,239 | |||
Fees waived by Adviser (Note 2) | (20,216 | ) | ||
Custodian expense reduction | (13 | ) | ||
|
| |||
Net expenses | 170,010 | |||
|
| |||
Net investment income | 399,913 | |||
|
| |||
Realized and unrealized gain on investments: | ||||
Net realized gain | 6,835 | |||
Net change in unrealized appreciation/(depreciation) | 282,165 | |||
|
| |||
Net realized and unrealized gain on investments | 289,000 | |||
|
| |||
Net increase in net assets resulting from operations | $ | 688,913 | ||
|
| |||
The accompanying notes are an integral part of the financial statements.
16
Table of Contents
KENTUCKY TAX-FREE SHORT-TO-MEDIUM SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended December 31, 2020 and the year ended June 30, 2020 | UNAUDITED |
| Six Months Ended 12/31/2020 | Year Ended 06/30/2020 | |||||||
Operations: | ||||||||
Net investment income | $ | 399,913 | $ | 865,554 | ||||
Net realized gain on investments | 6,835 | 146,952 | ||||||
Net change in unrealized appreciation/(depreciation) | 282,165 | 399,130 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 688,913 | 1,411,636 | ||||||
Total distributions | (399,913 | ) | (865,554 | ) | ||||
Net fund share transactions (Note 4) | 241,859 | (8,575,765 | ) | |||||
|
|
|
| |||||
Total increase/(decrease) | 530,859 | (8,029,683 | ) | |||||
Net assets: | ||||||||
Beginning of year | 47,388,831 | 55,418,514 | ||||||
|
|
|
| |||||
End of period | $ | 47,919,690 | $ | 47,388,831 | ||||
|
|
|
| |||||
FINANCIAL HIGHLIGHTS
| Selected data for a share outstanding: | Six Months Ended 12/31/2020 | For the years ended June 30, | ||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||
Net asset value, beginning of year | $5.41 | $5.36 | $5.22 | $5.33 | $5.45 | $5.35 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.05 | 0.09 | 0.09 | 0.09 | 0.10 | 0.11 | ||||||||||||||||||
Net gains/(losses) on securities | 0.04 | 0.05 | 0.14 | (0.11 | ) | (0.12 | ) | 0.10 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.09 | 0.14 | 0.23 | (0.02 | ) | (0.02 | ) | 0.21 | ||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Distributions from net investment income | (0.05 | ) | (0.09 | ) | (0.09 | ) | (0.09 | ) | (0.10 | ) | (0.11 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $5.45 | $5.41 | $5.36 | $5.22 | $5.33 | $5.45 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 1.58% | (b) | 2.66% | 4.56% | (0.32 | )% | (0.44 | )% | 3.88% | |||||||||||||||
Net assets, end of period (in thousands) | $47,920 | $47,389 | $55,419 | $62,646 | $72,172 | $85,169 | ||||||||||||||||||
Ratio of net expenses to average net assets (a) | 0.70% | (c) | 0.70% | 0.70% | 0.70% | 0.71% | 0.72% | |||||||||||||||||
Ratio of gross expenses to average net assets | 0.79% | (c) | 0.78% | 0.77% | 0.75% | 0.73% | 0.72% | |||||||||||||||||
Ratio of net investment income to average net assets | 1.66% | (c) | 1.70% | 1.81% | 1.76% | 1.79% | 1.96% | |||||||||||||||||
Portfolio turnover | 0.78% | (b) | 2.75% | 4.88% | 4.69% | 14.84% | 26.49% | |||||||||||||||||
| (a) | Percentages are after expense waivers and reductions by the Adviser and Custodian. The Adviser and Custodian have agreed not to seek recovery of these waivers and reductions. |
| (b) | Not annualized |
| (c) | Annualized |
The accompanying notes are an integral part of the financial statements.
17
Table of Contents
DUPREE MUTUAL FUNDS — MISSISSIPPI TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Mississippi Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS |
| |||||||||||||||||
| 29.11% of Net Assets | ||||||||||||||||||
Jackson State University Educational Building | 5.000 | % | 03/01/2034 | Aa2 | $ | 440,000 | $ | 510,083 | ||||||||||
Mississippi State University Educational Building | 5.000 | 11/01/2032 | Aa2 | 125,000 | 147,949 | |||||||||||||
MS Development Bank Special Obligation Gulf Coast Community Project** | 4.000 | 12/01/2034 | AA-* | 300,000 | 344,690 | |||||||||||||
MS Development Bank Special Obligation Itawamba Community College | 4.000 | 10/01/2040 | AA-* | 350,000 | 415,128 | |||||||||||||
MS Development Bank Special Obligation Northwest MS Community College | 4.000 | 03/01/2039 | AA-* | 225,000 | 266,443 | |||||||||||||
MS Development Bank Special Obligation Pearl River Community College | 5.000 | 10/01/2033 | AA-* | 125,000 | 158,674 | |||||||||||||
MS State University | 4.000 | 08/01/2033 | Aa2 | 140,000 | 163,293 | |||||||||||||
MS State University Educational Building Corporation Revenue | 5.000 | 08/01/2033 | Aa2 | 225,000 | 280,415 | |||||||||||||
MS State University Educational Building Corporation Revenue | 4.000 | 08/01/2036 | Aa2 | 250,000 | 289,378 | |||||||||||||
University of Mississippi Educational Building Corporation | 5.000 | 10/01/2031 | Aa2 | 205,000 | 249,299 | |||||||||||||
University Southern MS Educational Building Corporation | 5.000 | 09/01/2033 | Aa2 | 360,000 | 433,843 | |||||||||||||
|
| |||||||||||||||||
| 3,259,195 | ||||||||||||||||||
| PREREFUNDED BONDS | ||||||||||||||||||
| 20.09% of Net Assets | ||||||||||||||||||
MS Development Bank Desoto County Highway | 5.000 | 01/01/2030 | Aa3 | 100,000 | 109,597 | |||||||||||||
MS Development Bank Special Obligation Brandon Public Improvement | 5.000 | 11/01/2033 | Aa3 | 150,000 | 177,291 | |||||||||||||
MS Development Bank Special Obligation Canton** | 5.750 | 10/01/2031 | A2 | 370,000 | 385,351 | |||||||||||||
MS Development Bank Special Obligation Marshall County | 5.000 | 01/01/2028 | Aa3 | 200,000 | 209,628 | |||||||||||||
MS State Capital Improvement Projects | 5.000 | 10/01/2036 | Aa2 | 180,000 | 186,527 | |||||||||||||
MS State University Educational Building Corporation Revenue | 5.000 | 08/01/2036 | Aa2 | 175,000 | 179,989 | |||||||||||||
MS State University Educational Building Corporation Revenue** | 5.250 | 08/01/2038 | Aa2 | 300,000 | 338,934 | |||||||||||||
Southern Mississippi Educational Building Corporation | 5.000 | 03/01/2038 | Aa2 | 600,000 | 662,094 | |||||||||||||
|
| |||||||||||||||||
| 2,249,411 | ||||||||||||||||||
| MUNICIPAL UTILITY REVENUE BONDS | ||||||||||||||||||
| 14.46% of Net Assets | ||||||||||||||||||
MS Development Bank Special Obligation Hattiesburg Water & Sewer | 4.750 | 12/01/2038 | AA* | 700,000 | 765,100 | |||||||||||||
MS Development Bank Special Obligation Jackson Water & Sewer | 6.875 | 12/01/2040 | A2 | 150,000 | 174,654 | |||||||||||||
MS Development Bank Special Obligation Meridian Water & Sewer | 4.000 | 07/01/2038 | AA* | 150,000 | 181,025 | |||||||||||||
MS Development Bank Special Obligation Meridian Water & Sewer | 4.000 | 07/01/2036 | AA* | 215,000 | 262,213 | |||||||||||||
MS Development Bank Special Obligation Tupelo | 5.000 | 05/01/2033 | Aa2 | 150,000 | 180,219 | |||||||||||||
MS Development Bank Special Obligation West Jackson County Utility District | 5.000 | 12/01/2033 | A* | 50,000 | 56,166 | |||||||||||||
|
| |||||||||||||||||
| 1,619,377 | ||||||||||||||||||
| TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS |
| |||||||||||||||||
| 8.02% of Net Assets | ||||||||||||||||||
MS Development Bank Special Obligation Highway Construction | 5.000 | 01/01/2025 | Aa3 | 200,000 | 235,685 | |||||||||||||
MS Development Bank Special Obligation Highway Construction | 5.000 | 01/01/2029 | Aa3 | 300,000 | 371,487 | |||||||||||||
MS Development Bank Special Obligation Highway Construction | 4.000 | 01/01/2030 | Aa3 | 175,000 | 204,278 | |||||||||||||
MS Development Bank Special Obligation Marshall County | 5.000 | 01/01/2030 | Aa3 | 75,000 | 87,055 | |||||||||||||
|
| |||||||||||||||||
| 898,505 | ||||||||||||||||||
| AD VALOREM PROPERTY BONDS | ||||||||||||||||||
| 6.46% of Net Assets | ||||||||||||||||||
MS Development Bank Special Obligation Hattiesburg Project | 4.000 | 02/01/2040 | Aa3 | 250,000 | 297,973 | |||||||||||||
MS Development Bank Special Obligation Hinds County Schools | 5.000 | 03/01/2043 | Aa3 | 350,000 | 425,505 | |||||||||||||
|
| |||||||||||||||||
| 723,478 | ||||||||||||||||||
| PUBLIC FACILITIES REVENUE BONDS | ||||||||||||||||||
| 5.65% of Net Assets | ||||||||||||||||||
MS Development Bank Special Obligation Brandon Public Improvement** | 4.000 | 08/01/2033 | AA* | 300,000 | 345,231 | |||||||||||||
MS Development Bank Special Obligation Brandon Public Improvement | 4.000 | 08/01/2035 | AA* | 150,000 | 171,134 | |||||||||||||
MS Development Bank Special Obligation Hinds County | 4.000 | 11/01/2035 | Aa3 | 100,000 | 115,826 | |||||||||||||
|
| |||||||||||||||||
| 632,191 | ||||||||||||||||||
| SCHOOL IMPROVEMENT BONDS | ||||||||||||||||||
| 5.46% of Net Assets | ||||||||||||||||||
MS Development Bank Special Obligation Canton School District | 5.000 | 12/01/2033 | A1 | 100,000 | 118,879 | |||||||||||||
MS Development Bank Special Obligation Jackson Schools | 5.000 | 04/01/2028 | A+* | 225,000 | 246,346 | |||||||||||||
MS Development Bank Special Obligation Rankin School District | 4.000 | 06/01/2038 | AA* | 100,000 | 115,769 | |||||||||||||
The accompanying notes are an integral part of the financial statements.
18
Table of Contents
DUPREE MUTUAL FUNDS — MISSISSIPPI TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Mississippi Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
MS Development Bank Special Obligation Vicksburg Warren School District | 5.500 | % | 03/01/2038 | AA* | $ | 100,000 | $ | 130,456 | ||||||||||
|
| |||||||||||||||||
| 611,450 | ||||||||||||||||||
| REFUNDING BONDS | ||||||||||||||||||
| 4.76% of Net Assets | ||||||||||||||||||
MS State Refunding | 5.000 | 10/01/2033 | Aa2 | 150,000 | 189,850 | |||||||||||||
MS State Refunding** | 4.000 | 10/01/2036 | Aa2 | 290,000 | 343,114 | |||||||||||||
|
| |||||||||||||||||
| 532,964 | ||||||||||||||||||
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS |
| |||||||||||||||||
| 2.61% of Net Assets | ||||||||||||||||||
Mississippi State Gaming Tax Revenue | 5.000 | 10/15/2035 | A3 | 125,000 | 142,224 | |||||||||||||
Mississippi State Gaming Tax Revenue | 5.000 | 10/15/2037 | A-* | 125,000 | 149,627 | |||||||||||||
|
| |||||||||||||||||
| 291,851 | ||||||||||||||||||
| HOSPITAL AND HEALTHCARE REVENUE BONDS |
| |||||||||||||||||
| 1.74% of Net Assets | ||||||||||||||||||
Medical Center Educational Building Corporation MS Revenue | 5.500 | 12/01/2023 | Aa2 | 60,000 | 65,900 | |||||||||||||
Medical Center Educational Building Corporation MS Revenue | 5.000 | 06/01/2035 | Aa2 | 100,000 | 128,946 | |||||||||||||
|
| |||||||||||||||||
| 194,846 | ||||||||||||||||||
|
| |||||||||||||||||
Total Investments 98.36% of Net Assets (cost $10,264,008) (See (a) below for further explanation) |
| $ | 11,013,268 | |||||||||||||||
|
| |||||||||||||||||
Other assets in excess of liabilities 1.64% | 183,420 | |||||||||||||||||
|
| |||||||||||||||||
Net Assets 100% | $ | 11,196,688 | ||||||||||||||||
|
| |||||||||||||||||
| # | Ratings by Moody’s Investors Service unless noted otherwise. |
| All ratings are as of the date indicated and do not reflect subsequent changes. |
| * | Rated by Standard & Poor’s Corporation |
| @ | Rated by Fitch’s Investors Service |
| NR | Not Rated |
| ** | Security is segregated — see footnote 1(D) |
| (a) | Cost for federal income tax purposes is $10,264,008 and net unrealized appreciation of investments is as follows: |
| Unrealized appreciation | $ | 749,260 | ||||
| Unrealized depreciation | — | |||||
|
| |||||
| Net unrealized appreciation | $ | 749,260 | ||||
|
|
Other Information
The following is a summary of the inputs used, as of December 31, 2020, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs | Municipal Bonds | |||||
Level 1 | Quoted Prices | $ | — | |||
Level 2 | Other Significant Observable Inputs | 11,013,268 | ||||
Level 3 | Significant Unobservable Inputs | — | ||||
|
| |||||
| $ | 11,013,268 | |||||
|
| |||||
The accompanying notes are an integral part of the financial statements.
19
Table of Contents
MISSISSIPPI TAX-FREE INCOME SERIES
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2020 | UNAUDITED |
ASSETS: | ||||||||
Investments in securities, at fair value (Cost: $10,264,008) | $ | 11,013,268 | ||||||
Cash | 128,589 | |||||||
Interest receivable | 133,232 | |||||||
|
| |||||||
Total assets | 11,275,089 | |||||||
LIABILITIES: | ||||||||
Payable for: | ||||||||
Distributions to shareholders | 52,238 | |||||||
Fund shares redeemed | 4,067 | |||||||
Investment advisory fee | 2,246 | |||||||
Transfer agent fee | 3,109 | |||||||
Professional fees | 5,961 | |||||||
Custodian expense | 3,375 | |||||||
Trustees fees | 780 | |||||||
Accrued expenses | 6,625 | |||||||
|
| |||||||
Total liabilities | 78,401 | |||||||
|
| |||||||
NET ASSETS: | ||||||||
Capital | 10,430,984 | |||||||
Total distributable earnings | 765,704 | |||||||
|
| |||||||
Net assets at value | $ | 11,196,688 | ||||||
|
| |||||||
NET ASSET VALUE, offering price and redemption price per share | $ | 12.41 | ||||||
|
|
STATEMENT OF OPERATIONS
For the six months ended December 31, 2020
Net investment income: | ||||
Interest income | $ | 171,216 | ||
|
| |||
Expenses: | ||||
Investment advisory fee | 29,206 | |||
Transfer agent fee | 8,762 | |||
Registration expense | 5,045 | |||
Custodian expense | 3,439 | |||
Compliance fees | 3,496 | |||
Pricing fees | 2,269 | |||
Professional fees | 1,578 | |||
Trustees fees | 566 | |||
Other expenses | 1,763 | |||
|
| |||
Total expenses | 56,124 | |||
Fees waived by Adviser (Note 2) | (15,180 | ) | ||
Custodian expense reduction | (7 | ) | ||
|
| |||
Net expenses | 40,937 | |||
|
| |||
Net investment income | 130,279 | |||
|
| |||
Realized and unrealized gain on investments: | ||||
Net realized gain | 16,443 | |||
Net change in unrealized appreciation/(depreciation) | 47,182 | |||
|
| |||
Net realized and unrealized gain on investments | 63,625 | |||
|
| |||
Net increase in net assets resulting from operations | $ | 193,904 | ||
|
|
The accompanying notes are an integral part of the financial statements.
20
Table of Contents
MISSISSIPPI TAX-FREE INCOME SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended December 31, 2020 and the year ended June 30, 2020 | UNAUDITED |
| Six Months Ended 12/31/2020 | Year Ended 06/30/2020 | |||||||
Operations: | ||||||||
Net investment income | $ | 130,279 | $ | 275,568 | ||||
Net realized gain on investments | 16,443 | 34,775 | ||||||
Net change in unrealized appreciation/(depreciation) | 47,182 | 99,042 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 193,904 | 409,385 | ||||||
Total distributions | (151,549 | ) | (289,777 | ) | ||||
Net fund share transactions (Note 4) | 43,243 | (333,019 | ) | |||||
|
|
|
| |||||
Total increase/(decrease) | 85,598 | (213,411 | ) | |||||
Net assets: | ||||||||
Beginning of year | 11,111,090 | 11,324,501 | ||||||
|
|
|
| |||||
End of period | $ | 11,196,688 | $ | 11,111,090 | ||||
|
|
|
| |||||
FINANCIAL HIGHLIGHTS
| Selected data for a share outstanding: | Six Months Ended 12/31/2020 | For the years ended June 30, | ||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||
Net asset value, beginning of year | $12.37 | $12.21 | $11.92 | $12.14 | $12.55 | $12.03 | ||||||||||||||||||
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Income from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.14 | 0.31 | 0.33 | 0.33 | 0.34 | 0.36 | ||||||||||||||||||
Net gains/(losses) on securities | 0.06 | 0.18 | 0.29 | (0.22 | ) | (0.41 | ) | 0.52 | ||||||||||||||||
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Total from investment operations | 0.20 | 0.49 | 0.62 | 0.11 | (0.07 | ) | 0.88 | |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Distributions from net investment income | (0.14 | ) | (0.31 | ) | (0.33 | ) | (0.33 | ) | (0.34 | ) | (0.36 | ) | ||||||||||||
Distributions from capital gains | (0.02 | ) | (0.02 | ) | 0.00 | (b) | 0.00 | (b) | 0.00 | (b) | 0.00 | (b) | ||||||||||||
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Total distributions | (0.16 | ) | (0.33 | ) | (0.33 | ) | (0.33 | ) | (0.34 | ) | (0.36 | ) | ||||||||||||
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Net asset value, end of period | $12.41 | $12.37 | $12.21 | $11.92 | $12.14 | $12.55 | ||||||||||||||||||
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Total return | 1.65% | (c) | 4.01% | 5.29% | 0.99% | (0.48 | )% | 7.49% | ||||||||||||||||
Net assets, end of period (in thousands) | $11,197 | $11,111 | $11,325 | $11,615 | $12,448 | $11,505 | ||||||||||||||||||
Ratio of net expenses to average net assets (a) | 0.70% | (d) | 0.70% | 0.70% | 0.70% | 0.70% | 0.70% | |||||||||||||||||
Ratio of gross expenses to average net assets | 0.97% | (d) | 0.99% | 0.97% | 0.92% | 0.85% | 0.88% | |||||||||||||||||
Ratio of net investment income to average net assets | 2.25% | (d) | 2.51% | 2.75% | 2.75% | 2.80% | 2.97% | |||||||||||||||||
Portfolio turnover | 7.16% | (c) | 10.26% | 4.65% | 7.26% | 14.06% | 3.26% | |||||||||||||||||
| (a) | Percentages are after expense waivers and reductions by the Adviser and Custodian. The Adviser and Custodian have agreed not to seek recovery of these waivers and reductions. |
| (b) | Rounds to less than $0.01. |
| (c) | Not annualized |
| (d) | Annualized |
The accompanying notes are an integral part of the financial statements.
21
Table of Contents
DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
North Carolina Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS |
| |||||||||||||||||
| 18.54% of Net Assets | ||||||||||||||||||
Appalachian NC State University | 4.000 | % | 05/01/2033 | A1 | $ | 500,000 | $ | 582,715 | ||||||||||
Appalachian NC State University | 5.000 | 05/01/2036 | A1 | 1,000,000 | 1,227,370 | |||||||||||||
Iredell County NC Community College | 5.000 | 04/01/2026 | Aa1 | 225,000 | 225,608 | |||||||||||||
Iredell County NC Community College | 5.000 | 04/01/2027 | Aa1 | 325,000 | 325,874 | |||||||||||||
NC State Capital Facilities Davidson College | 5.000 | 03/01/2032 | AA+* | 310,000 | 327,028 | |||||||||||||
NC State Capital Facilities Finance Agency Davidson College | 4.750 | 03/01/2035 | AA+* | 1,000,000 | 1,048,170 | |||||||||||||
NC State Capital Facilities Wake Forest | 5.000 | 01/01/2048 | Aa3 | 315,000 | 384,958 | |||||||||||||
Scotland County NC | 5.000 | 12/01/2033 | A* | 250,000 | 306,728 | |||||||||||||
University of NC at Asheville | 4.000 | 06/01/2036 | A1 | 1,350,000 | 1,574,100 | |||||||||||||
University of NC at Charlotte Board of Governors | 4.000 | 10/01/2037 | Aa3 | 750,000 | 866,798 | |||||||||||||
University of NC at Charlotte Board of Governors | 5.000 | 10/01/2042 | Aa3 | 250,000 | 305,068 | |||||||||||||
University of NC at Charlotte Board of Governors | 4.000 | 10/01/2040 | Aa3 | 305,000 | 362,349 | |||||||||||||
University of NC at Wilmington | 4.000 | 10/01/2037 | Aa3 | 750,000 | 895,065 | |||||||||||||
University of NC Chapel Hill Hospitals | 4.000 | 02/01/2037 | Aa3 | 1,000,000 | 1,187,120 | |||||||||||||
University of NC Chapel Hill Hospitals | 4.000 | 02/01/2038 | Aa3 | 400,000 | 472,184 | |||||||||||||
University of NC Charlotte | 5.000 | 04/01/2035 | Aa3 | 595,000 | 675,004 | |||||||||||||
University of NC Charlotte | 4.000 | 10/01/2035 | Aa3 | 250,000 | 290,498 | |||||||||||||
University of NC Charlotte | 4.000 | 10/01/2036 | Aa3 | 250,000 | 289,628 | |||||||||||||
University of NC Charlotte | 5.000 | 04/01/2038 | Aa3 | 1,000,000 | 1,123,480 | |||||||||||||
University of NC Charlotte | 5.000 | 04/01/2040 | Aa3 | 2,650,000 | 3,083,938 | |||||||||||||
University of NC Charlotte | 5.000 | 04/01/2043 | Aa3 | 1,500,000 | 1,682,655 | |||||||||||||
University of NC Greensboro | 5.000 | 04/01/2033 | Aa3 | 900,000 | 1,013,895 | |||||||||||||
University of NC Greensboro | 4.000 | 04/01/2035 | Aa3 | 750,000 | 878,903 | |||||||||||||
University of NC Greensboro | 4.000 | 04/01/2036 | Aa3 | 500,000 | 584,060 | |||||||||||||
University of NC Greensboro | 5.000 | 04/01/2038 | Aa3 | 425,000 | 529,792 | |||||||||||||
University of NC Greensboro | 5.000 | 04/01/2039 | Aa3 | 2,870,000 | 3,208,746 | |||||||||||||
University of NC Wilmington | 4.000 | 04/01/2037 | Aa3 | 385,000 | 456,140 | |||||||||||||
University of NC Wilmington | 4.000 | 04/01/2038 | Aa3 | 405,000 | 478,463 | |||||||||||||
University of NC Wilmington | 4.000 | 04/01/2039 | Aa3 | 1,380,000 | 1,625,651 | |||||||||||||
University of NC Wilmington Limited Obligation | 5.000 | 06/01/2033 | A1 | 550,000 | 629,173 | |||||||||||||
University of NC Wilmington Limited Obligation | 4.000 | 06/01/2034 | A1 | 500,000 | 552,440 | |||||||||||||
University of North Carolina | 5.000 | 10/01/2033 | A3 | 30,000 | 30,079 | |||||||||||||
Western Carolina NC University | 5.000 | 10/01/2043 | Aa3 | 1,000,000 | 1,222,650 | |||||||||||||
Western Carolina University | 5.000 | 10/01/2035 | Aa3 | 1,000,000 | 1,245,010 | |||||||||||||
Western Carolina University | 5.000 | 10/01/2045 | Aa3 | 825,000 | 953,609 | |||||||||||||
|
| |||||||||||||||||
| 30,644,949 | ||||||||||||||||||
| SCHOOL IMPROVEMENT BONDS | ||||||||||||||||||
| 17.63% of Net Assets | ||||||||||||||||||
Brunswick County NC Limited Obligation | 5.000 | 06/01/2030 | Aa2 | 250,000 | 297,030 | |||||||||||||
Brunswick County NC Limited Obligation | 5.000 | 06/01/2031 | Aa2 | 250,000 | 298,355 | |||||||||||||
Buncombe County NC Limited Obligation | 4.000 | 06/01/2036 | Aa1 | 125,000 | 154,571 | |||||||||||||
Burke County NC Limited Obligation | 4.000 | 04/01/2034 | Aa3 | 250,000 | 291,205 | |||||||||||||
Cabarrus County NC | 4.000 | 06/01/2034 | Aa2 | 795,000 | 933,147 | |||||||||||||
Cabarrus County NC Limited Obligation | 5.000 | 04/01/2035 | Aa2 | 1,435,000 | 1,717,279 | |||||||||||||
Cabarrus County NC Limited Obligation | 4.000 | 06/01/2035 | Aa2 | 1,650,000 | 1,931,160 | |||||||||||||
Chatham County NC Limited Obligation | 4.000 | 11/01/2036 | Aa2 | 750,000 | 889,905 | |||||||||||||
Chatham County NC Limited Obligation | 4.000 | 11/01/2037 | Aa2 | 2,000,000 | 2,366,580 | |||||||||||||
Davidson County NC Limited Obligation | 5.000 | 06/01/2032 | Aa2 | 500,000 | 606,075 | |||||||||||||
Duplin County NC Limited Obligation | 5.000 | 04/01/2032 | A2 | 750,000 | 889,118 | |||||||||||||
Duplin County NC Limited Obligation | 5.000 | 04/01/2034 | A2 | 865,000 | 1,020,155 | |||||||||||||
Henderson County NC Limited Obligation | 4.000 | 06/01/2033 | Aa2 | 705,000 | 878,134 | |||||||||||||
Henderson County NC Limited Obligation | 4.000 | 06/01/2034 | Aa2 | 200,000 | 238,372 | |||||||||||||
Henderson County NC Limited Obligation | 4.000 | 06/01/2037 | Aa2 | 1,275,000 | 1,555,180 | |||||||||||||
Henderson County NC Limited Obligation | 4.000 | 06/01/2038 | Aa2 | 1,060,000 | 1,289,819 | |||||||||||||
Onslow County NC Limited Obligation | 5.000 | 06/01/2033 | Aa2 | 500,000 | 599,375 | |||||||||||||
Pitt County NC Limited Obligation | 4.000 | 04/01/2031 | Aa2 | 500,000 | 586,355 | |||||||||||||
The accompanying notes are an integral part of the financial statements.
22
Table of Contents
DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
North Carolina Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
Pitt County NC Limited Obligation | 4.000 | % | 04/01/2034 | Aa2 | $ | 550,000 | $ | 635,641 | ||||||||||
Randolph County NC Limited Obligation | 4.000 | 10/01/2037 | Aa3 | 250,000 | 301,068 | |||||||||||||
Randolph County NC Limited Obligation | 4.000 | 10/01/2039 | Aa3 | 350,000 | 419,591 | |||||||||||||
Rutherford County NC Limited Obligation | 4.000 | 03/01/2037 | A1 | 410,000 | 497,863 | |||||||||||||
Rutherford County NC Limited Obligation | 4.000 | 03/01/2039 | A1 | 500,000 | 603,820 | |||||||||||||
Rutherford County NC Limited Obligation | 4.000 | 03/01/2040 | A1 | 325,000 | 391,560 | |||||||||||||
Sampson County NC Limited Obligation | 5.000 | 12/01/2033 | A1 | 1,975,000 | 2,334,330 | |||||||||||||
Sampson County NC Limited Obligation | 5.000 | 09/01/2040 | A1 | 750,000 | 913,268 | |||||||||||||
Scotland County NC | 4.500 | 12/01/2036 | A* | 1,170,000 | 1,401,145 | |||||||||||||
Surry County NC Limited Obligation | 4.000 | 06/01/2034 | Aa3 | 350,000 | 424,176 | |||||||||||||
Surry County NC Limited Obligation | 4.000 | 06/01/2036 | Aa3 | 590,000 | 708,277 | |||||||||||||
Surry County NC Limited Obligation | 4.000 | 06/01/2037 | Aa3 | 730,000 | 873,153 | |||||||||||||
Wake County NC Limited Obligation | 4.000 | 09/01/2037 | Aa1 | 750,000 | 918,210 | |||||||||||||
Wayne County NC | 4.000 | 06/01/2034 | Aa3 | 1,500,000 | 1,756,605 | |||||||||||||
Wilkes County NC Limited Obligation | 5.000 | 06/01/2031 | A1 | 350,000 | 414,838 | |||||||||||||
|
| |||||||||||||||||
| 29,135,360 | ||||||||||||||||||
| PUBLIC FACILITIES REVENUE BONDS | ||||||||||||||||||
| 14.38% of Net Assets | ||||||||||||||||||
Charlotte NC Certificate of Participation | 4.000 | 12/01/2034 | Aa1 | 290,000 | 330,588 | |||||||||||||
Charlotte NC Certificate of Participation | 4.000 | 06/01/2036 | Aa2 | 1,000,000 | 1,211,040 | |||||||||||||
Charlotte NC Certificate of Participation | 4.000 | 06/01/2037 | Aa2 | 3,000,000 | 3,622,530 | |||||||||||||
Charlotte NC Certificate of Participation Convention Facility Project | 4.000 | 06/01/2037 | Aa2 | 500,000 | 603,755 | |||||||||||||
Charlotte NC Certificate of Participation Convention Facility Project | 4.000 | 06/01/2039 | Aa2 | 1,000,000 | 1,201,350 | |||||||||||||
Davidson County NC Limited Obligation | 4.000 | 06/01/2037 | Aa2 | 200,000 | 244,540 | |||||||||||||
Davidson County NC Limited Obligation | 4.000 | 06/01/2038 | Aa2 | 240,000 | 292,505 | |||||||||||||
Davidson County NC Limited Obligation | 4.000 | 06/01/2040 | Aa2 | 635,000 | 770,198 | |||||||||||||
Durham Capital Financing Corporation | 4.000 | 06/01/2036 | Aa1 | 300,000 | 370,971 | |||||||||||||
Durham Capital Financing Corporation | 4.000 | 06/01/2037 | Aa1 | 270,000 | 332,532 | |||||||||||||
Durham Capital Financing Corporation | 4.000 | 06/01/2038 | Aa1 | 250,000 | 306,908 | |||||||||||||
Durham NC Limited Obligation | 4.000 | 04/01/2036 | Aa1 | 1,000,000 | 1,186,220 | |||||||||||||
Forsyth County NC Limited Tax | 5.000 | 04/01/2031 | Aa1 | 335,000 | 353,891 | |||||||||||||
Harnett County NC Limited Obligation | 4.000 | 10/01/2038 | Aa3 | 1,055,000 | 1,255,260 | |||||||||||||
Henderson County NC Limited Obligation | 5.000 | 10/01/2030 | Aa2 | 250,000 | 298,325 | |||||||||||||
Henderson County NC Limited Obligation | 5.000 | 10/01/2031 | Aa2 | 500,000 | 595,105 | |||||||||||||
Johnston County NC Limited Obligation | 4.000 | 04/01/2035 | Aa2 | 360,000 | 443,747 | |||||||||||||
Johnston County NC Limited Obligation | 4.000 | 04/01/2037 | Aa2 | 975,000 | 1,197,047 | |||||||||||||
Kannapolis NC Limited Obligation | 5.000 | 04/01/2032 | A1 | 500,000 | 564,135 | |||||||||||||
Mooresville NC Limited Obligation | 3.000 | 10/01/2038 | Aa2 | 725,000 | 815,582 | |||||||||||||
Onslow County NC Limited Obligation | 5.000 | 06/01/2032 | Aa2 | 500,000 | 600,345 | |||||||||||||
Orange County NC | 4.000 | 10/01/2036 | Aa1 | 375,000 | 456,056 | |||||||||||||
Orange County NC | 4.000 | 10/01/2037 | Aa1 | 375,000 | 454,680 | |||||||||||||
Orange County NC | 4.000 | 10/01/2038 | Aa1 | 275,000 | 332,679 | |||||||||||||
Orange County NC | 4.000 | 10/01/2038 | Aa1 | 765,000 | 925,451 | |||||||||||||
Orange County NC | 4.000 | 10/01/2039 | Aa1 | 200,000 | 240,672 | |||||||||||||
Raleigh NC Limited Obligation | 5.000 | 10/01/2034 | Aa1 | 1,420,000 | 1,647,311 | |||||||||||||
Randolph County NC Limited Obligation | 4.000 | 10/01/2036 | Aa3 | 250,000 | 303,120 | |||||||||||||
Randolph County NC Limited Obligation | 4.000 | 10/01/2037 | Aa3 | 250,000 | 301,750 | |||||||||||||
Randolph County NC Limited Obligation | 4.000 | 10/01/2038 | Aa3 | 670,000 | 806,251 | |||||||||||||
Randolph County NC Limited Obligation | 4.000 | 10/01/2039 | Aa3 | 500,000 | 600,770 | |||||||||||||
Thomasville NC Revenue | 4.000 | 05/01/2036 | Aa3 | 500,000 | 590,295 | |||||||||||||
Wilmington NC Limited Obligation | 4.000 | 06/01/2036 | Aa1 | 230,000 | 284,411 | |||||||||||||
Wilmington NC Limited Obligation | 4.000 | 06/01/2037 | Aa1 | 170,000 | 209,372 | |||||||||||||
|
| |||||||||||||||||
| 23,749,392 | ||||||||||||||||||
| MUNICIPAL UTILITY REVENUE BONDS | ||||||||||||||||||
| 12.31% of Net Assets | ||||||||||||||||||
Brunswick County NC Enterprise System Revenue | 5.000 | 04/01/2031 | Aa3 | 500,000 | 585,970 | |||||||||||||
Brunswick County NC Enterprise System Revenue | 4.000 | 04/01/2039 | Aa3 | 1,000,000 | 1,194,160 | |||||||||||||
Buncombe County NC Metropolitan Sewer District | 5.000 | 07/01/2039 | Aaa | 550,000 | 633,072 | |||||||||||||
The accompanying notes are an integral part of the financial statements.
23
Table of Contents
DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
North Carolina Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
Cary NC Combined Enterprise System Revenue | 4.000 | % | 12/01/2042 | Aaa | $ | 750,000 | $ | 877,575 | ||||||||||
Charlotte NC Storm Water Fee Revenue | 3.000 | 12/01/2036 | Aaa | 250,000 | 286,415 | |||||||||||||
Charlotte NC Storm Water Fee Revenue | 3.000 | 12/01/2037 | Aaa | 250,000 | 285,918 | |||||||||||||
Charlotte NC Water & Sewer System | 4.000 | 07/01/2046 | Aaa | 1,050,000 | 1,286,817 | |||||||||||||
Concord NC Utilities System Revenue | 4.500 | 12/01/2034 | Aa2 | 1,000,000 | 1,171,980 | |||||||||||||
Fuquay-Varina NC Combined Utilities Revenue | 5.000 | 04/01/2040 | Aa2 | 1,000,000 | 1,189,960 | |||||||||||||
Gastonia NC Combined Utilities System Revenue | 5.000 | 05/01/2034 | Aa2 | 570,000 | 668,564 | |||||||||||||
Gastonia NC Combined Utilities System Revenue | 5.000 | 05/01/2035 | Aa2 | 250,000 | 292,650 | |||||||||||||
Greensboro NC Enterprise System Revenue | 4.000 | 06/01/2045 | Aa1 | 1,965,000 | 2,414,238 | |||||||||||||
High Point NC Combined Enterprise | 5.000 | 11/01/2039 | Aa2 | 750,000 | 873,000 | |||||||||||||
Lincoln County NC Enterprise System Revenue | 3.000 | 08/01/2037 | AA* | 245,000 | 275,593 | |||||||||||||
Lincoln County NC Enterprise System Revenue | 3.000 | 08/01/2038 | AA* | 160,000 | 179,222 | |||||||||||||
Lincoln County NC Enterprise System Revenue | 3.000 | 08/01/2039 | AA* | 340,000 | 379,569 | |||||||||||||
Lincoln County NC Enterprise System Revenue | 3.000 | 08/01/2040 | AA* | 265,000 | 295,096 | |||||||||||||
Lincoln County NC Enterprise System Revenue | 3.000 | 08/01/2041 | AA* | 240,000 | 266,362 | |||||||||||||
Martin County NC Limited Obligation Water and Sewer District | 4.750 | 06/01/2034 | A2 | 1,150,000 | 1,290,369 | |||||||||||||
NC Municipal Power Agency #1 Catawba Electric Revenue | 5.000 | 01/01/2032 | A* | 500,000 | 594,615 | |||||||||||||
Pender County NC Limited Obligation | 3.000 | 06/01/2038 | Aa3 | 490,000 | 539,823 | |||||||||||||
Pender County NC Limited Obligation | 3.000 | 06/01/2045 | Aa3 | 500,000 | 538,705 | |||||||||||||
Sampson County NC Water & Sewer District | 5.000 | 06/01/2037 | A1/A* | 920,000 | 1,082,960 | |||||||||||||
Union County NC Enterprise System Revenue | 4.000 | 06/01/2038 | Aa1 | 500,000 | 602,870 | |||||||||||||
Union County NC Enterprise System Revenue | 4.000 | 06/01/2044 | Aa1 | 415,000 | 494,576 | |||||||||||||
Wake County NC Industrial Facilities & Pollution Control Duke Energy | 4.000 | 06/01/2041 | Aa3 | 1,260,000 | 1,325,255 | |||||||||||||
Wilmington NC Storm Water Revenue | 5.000 | 06/01/2028 | AA+* | 115,000 | 115,419 | |||||||||||||
Wilmington NC Storm Water Revenue | 5.000 | 06/01/2035 | Aa2 | 500,000 | 594,545 | |||||||||||||
|
| |||||||||||||||||
| 20,335,298 | ||||||||||||||||||
| PREREFUNDED BONDS | ||||||||||||||||||
| 9.61% of Net Assets | ||||||||||||||||||
Buncombe County NC Limited Obligation | 5.000 | 06/01/2030 | Aa1 | 250,000 | 267,005 | |||||||||||||
Buncombe County NC Limited Obligation | 5.000 | 06/01/2032 | Aa1 | 250,000 | 267,005 | |||||||||||||
Dare County NC Limited Obligation Refunding | 5.000 | 06/01/2029 | Aa3 | 100,000 | 106,816 | |||||||||||||
Durham Capital Financing Corporation | 4.000 | 06/01/2043 | Aa1 | 1,000,000 | 1,091,560 | |||||||||||||
Durham Capital Financing Corporation Limited Obligation | 5.000 | 06/01/2034 | Aa1 | 500,000 | 557,830 | |||||||||||||
Jacksonville Public Facilities Corporation Limited Obligation | 5.000 | 04/01/2031 | Aa3 | 265,000 | 280,871 | |||||||||||||
Jacksonville Public Facilities Corporation Limited Obligation | 5.000 | 04/01/2032 | Aa3 | 100,000 | 105,989 | |||||||||||||
Johnston County NC Limited Obligation | 4.750 | 06/01/2033 | Aa2 | 500,000 | 554,820 | |||||||||||||
NC Eastern Municipal Power Agency | 6.000 | 01/01/2025 | AAA@ | 1,150,000 | 1,408,382 | |||||||||||||
NC Eastern Municipal Power Agency | 6.000 | 01/01/2026 | AAA@ | 275,000 | 290,755 | |||||||||||||
NC Municipal Power Agency #1 Catawba Electric Revenue | 5.000 | 01/01/2030 | A* | 500,000 | 604,685 | |||||||||||||
NC Municipal Power Agency #1 Catawba Electric Revenue | 5.000 | 01/01/2031 | A2 | 500,000 | 523,910 | |||||||||||||
NC State Capital Facilities Duke University | 5.000 | 10/01/2041 | Aa1 | 2,000,000 | 2,443,000 | |||||||||||||
NC State Medical Care Commission Duke University Health | 5.000 | 06/01/2035 | Aa2 | 500,000 | 534,080 | |||||||||||||
NC State Medical Care Commission Health Care Facilities Vidant Health | 5.000 | 06/01/2036 | A2 | 1,000,000 | 1,067,420 | |||||||||||||
NC State University at Raleigh | 5.000 | 10/01/2042 | Aa1 | 750,000 | 848,010 | |||||||||||||
Orange County NC Public Facilities Company Limited Obligation | 4.750 | 10/01/2032 | Aa1 | 750,000 | 809,993 | |||||||||||||
Raleigh NC Limited Obligation | 5.000 | 10/01/2038 | Aa1 | 500,000 | 565,635 | |||||||||||||
University of NC Charlotte | 5.000 | 04/01/2031 | Aa3 | 750,000 | 794,918 | |||||||||||||
University of NC Greensboro | 5.000 | 04/01/2031 | Aa3 | 500,000 | 530,075 | |||||||||||||
University of NC Greensboro | 5.000 | 04/01/2036 | Aa3 | 500,000 | 530,075 | |||||||||||||
Watauga NC Public Facilities Corporation Limited Obligation | 5.000 | 06/01/2027 | Aa3 | 750,000 | 801,345 | |||||||||||||
Winston Salem NC Limited Obligation | 5.000 | 06/01/2031 | Aa1 | 800,000 | 893,144 | |||||||||||||
|
| |||||||||||||||||
| 15,877,323 | ||||||||||||||||||
| REFUNDING BONDS | ||||||||||||||||||
| 7.62% of Net Assets | ||||||||||||||||||
Buncombe County NC Limited Obligation** | 5.000 | 06/01/2035 | Aa1 | 1,000,000 | 1,184,770 | |||||||||||||
Charlotte NC Certificate of Participation | 5.000 | 06/01/2026 | Aa1 | 1,455,000 | 1,459,130 | |||||||||||||
Charlotte NC Certificate of Participation | 5.000 | 06/01/2027 | Aa1 | 775,000 | 777,170 | |||||||||||||
Charlotte NC Certificate of Participation | 5.000 | 06/01/2033 | Aa1 | 840,000 | 928,326 | |||||||||||||
The accompanying notes are an integral part of the financial statements.
24
Table of Contents
DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
North Carolina Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
Charlotte NC Certificate of Participation | 5.000 | % | 06/01/2034 | Aa1 | $ | 750,000 | $ | 888,218 | ||||||||||
Chatham County NC | 5.000 | 11/01/2032 | Aa2 | 825,000 | 995,478 | |||||||||||||
Durham County NC | 4.000 | 06/01/2036 | Aaa | 225,000 | 276,098 | |||||||||||||
Monroe NC Limited Obligation | 4.000 | 03/01/2033 | Aa3 | 255,000 | 292,317 | |||||||||||||
Monroe NC Limited Obligation** | 5.000 | 03/01/2039 | Aa3 | 1,250,000 | 1,487,250 | |||||||||||||
New Hanover County NC Limited Obligation | 5.000 | 12/01/2027 | Aa1 | 505,000 | 550,223 | |||||||||||||
Pitt County NC Certificate of Participation | 5.000 | 04/01/2027 | Aa2 | 500,000 | 529,815 | |||||||||||||
Rockingham County NC Limited Obligation | 5.000 | 04/01/2027 | Aa3 | 250,000 | 297,480 | |||||||||||||
Rockingham County NC Limited Obligation | 4.500 | 04/01/2032 | Aa3 | 500,000 | 572,405 | |||||||||||||
Sampson County NC Limited Obligation | 4.000 | 09/01/2036 | A1 | 1,000,000 | 1,160,090 | |||||||||||||
Sampson County NC Limited Obligation | 4.000 | 09/01/2037 | A1 | 500,000 | 578,670 | |||||||||||||
Thomasville NC Combined Enterprise System Revenue | 4.750 | 05/01/2028 | A1 | 435,000 | 457,916 | |||||||||||||
Union County NC Limited Obligation Refunding | 5.000 | 12/01/2024 | Aa1 | 125,000 | 148,020 | |||||||||||||
|
| |||||||||||||||||
| 12,583,376 | ||||||||||||||||||
| HOSPITAL AND HEALTHCARE REVENUE BONDS | ||||||||||||||||||
| 6.54% of Net Assets | ||||||||||||||||||
Charlotte Mecklenburg NC Hospital Authority Atrium Health | 5.000 | 01/15/2036 | Aa3 | 590,000 | 751,985 | |||||||||||||
Charlotte Mecklenburg NC Hospital Healthcare System | 5.000 | 01/15/2039 | Aa3 | 1,500,000 | 1,619,835 | |||||||||||||
Charlotte-Mecklenburg NC Hospital Authority | 5.000 | 01/15/2033 | Aa3 | 210,000 | 270,421 | |||||||||||||
NC State Medical Care Commission | 4.000 | 07/01/2039 | A2 | 550,000 | 639,205 | |||||||||||||
NC State Medical Care Commission Health Care Facilities Rex Hospital | 5.000 | 07/01/2033 | A2 | 750,000 | 862,050 | |||||||||||||
NC State Medical Care Commission Health Care Facilities Vidant Health | 5.000 | 06/01/2040 | A2 | 1,385,000 | 1,603,607 | |||||||||||||
NC State Medical Care Commission Health Care Facilities Wake Medical | 5.000 | 10/01/2031 | A2 | 1,000,000 | 1,066,310 | |||||||||||||
NC State Medical Care Commission Health Care Facilities Wake Medical | 5.000 | 10/01/2038 | A2 | 200,000 | 211,898 | |||||||||||||
NC State Medical Care Commission Rex Healthcare | 4.000 | 07/01/2040 | A2 | 750,000 | 868,973 | |||||||||||||
NC State Medical Care Commission Wake Forest Baptist Hospital | 5.000 | 12/01/2033 | A2 | 1,000,000 | 1,083,520 | |||||||||||||
New Hanover County NC Hospital Revenue New Hanover Regional Medical | 5.000 | 10/01/2034 | A1 | 1,500,000 | 1,828,260 | |||||||||||||
|
| |||||||||||||||||
| 10,806,064 | ||||||||||||||||||
| TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS | ||||||||||||||||||
| 4.62% of Net Assets | ||||||||||||||||||
NC State Grant Anticipation Revenue Vehicle Garvee | 5.000 | 03/01/2030 | A2 | 200,000 | 233,904 | |||||||||||||
NC State Limited Obligation | 4.000 | 05/01/2035 | Aa1 | 100,000 | 124,353 | |||||||||||||
NC State Limited Obligation Build NC Bonds | 4.000 | 05/01/2034 | Aa1 | 670,000 | 820,120 | |||||||||||||
NC State Turnpike Authority | 5.000 | 01/01/2036 | AA* | 500,000 | 627,605 | |||||||||||||
NC State Turnpike Authority | 5.000 | 01/01/2038 | AA* | 2,415,000 | 3,012,857 | |||||||||||||
NC State Turnpike Authority Monroe Connector System | 5.000 | 07/01/2029 | Aa1 | 500,000 | 511,730 | |||||||||||||
NC State Turnpike Authority Monroe Connector System | 5.000 | 07/01/2031 | Aa1 | 1,385,000 | 1,417,354 | |||||||||||||
NC State Turnpike Authority Triangle Expressway | 4.000 | 01/01/2036 | Aa1 | 250,000 | 294,293 | |||||||||||||
NC State Turnpike Authority Triangle Expressway | 4.000 | 01/01/2039 | Aa1 | 500,000 | 582,770 | |||||||||||||
|
| |||||||||||||||||
| 7,624,986 | ||||||||||||||||||
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS | ||||||||||||||||||
| 3.52% of Net Assets | ||||||||||||||||||
Buncombe County NC Limited Obligation | 5.000 | 06/01/2033 | Aa1 | 600,000 | 712,872 | |||||||||||||
Buncombe County NC Limited Obligation | 5.000 | 06/01/2034 | Aa1 | 1,100,000 | 1,263,834 | |||||||||||||
Buncombe County NC Limited Obligation | 5.000 | 06/01/2034 | Aa1 | 365,000 | 433,138 | |||||||||||||
Charlotte NC Certificate of Participation | 5.000 | 12/01/2029 | Aa1 | 340,000 | 354,521 | |||||||||||||
Johnston County NC Limited Obligation | 3.000 | 04/01/2040 | Aa2 | 650,000 | 717,347 | |||||||||||||
Rocky Mount NC Special Obligation | 4.500 | 05/01/2032 | Aa3 | 1,500,000 | 1,771,125 | |||||||||||||
Winston Salem NC Limited Obligation | 4.500 | 06/01/2034 | Aa1 | 500,000 | 560,245 | |||||||||||||
| �� |
|
| ||||||||||||||||
| 5,813,082 | ||||||||||||||||||
| AIRPORT REVENUE BONDS | ||||||||||||||||||
| 3.12% of Net Assets | ||||||||||||||||||
Charlotte NC Douglas International Airport | 5.000 | 07/01/2030 | Aa3 | 1,095,000 | 1,254,651 | |||||||||||||
Charlotte NC Douglas International Airport | 5.000 | 07/01/2036 | Aa3 | 250,000 | 306,778 | |||||||||||||
Charlotte NC Douglas International Airport | 4.000 | 07/01/2036 | Aa3 | 500,000 | 572,805 | |||||||||||||
Charlotte NC Douglas International Airport | 5.000 | 07/01/2037 | Aa3 | 700,000 | 857,507 | |||||||||||||
Charlotte NC Douglas International Airport | 5.000 | 07/01/2042 | Aa3 | 1,325,000 | 1,603,885 | |||||||||||||
The accompanying notes are an integral part of the financial statements.
25
Table of Contents
DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
North Carolina Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
Charlotte NC Douglas International Airport | 4.000 | % | 07/01/2044 | Aa3 | $ | 480,000 | $ | 559,186 | ||||||||||
|
| |||||||||||||||||
| 5,154,812 | ||||||||||||||||||
| LEASE REVENUE BONDS | ||||||||||||||||||
| 1.05% of Net Assets | ||||||||||||||||||
Buncombe County NC Limited Obligation | 5.000 | 06/01/2032 | Aa1 | 1,500,000 | 1,727,280 | |||||||||||||
|
| |||||||||||||||||
| ESCROWED TO MATURITY BONDS | ||||||||||||||||||
| .59% of Net Assets | ||||||||||||||||||
NC Eastern Municipal Power Agency | 6.000 | 01/01/2022 | A3 | 915,000 | 966,844 | |||||||||||||
|
| |||||||||||||||||
| AD VALOREM PROPERTY BONDS | ||||||||||||||||||
| .23% of Net Assets | ||||||||||||||||||
Raleigh NC Limited Obligation | 4.000 | 06/01/2034 | Aa1 | 300,000 | 378,231 | |||||||||||||
|
| |||||||||||||||||
Total Investments 99.76% of Net Assets (cost $153,163,456) (See (a) below for further explanation) |
| $ | 164,796,997 | |||||||||||||||
|
| |||||||||||||||||
Other assets in excess of liabilities .24% | 389,248 | |||||||||||||||||
|
| |||||||||||||||||
Net Assets 100% | $ | 165,186,245 | ||||||||||||||||
|
| |||||||||||||||||
| # | Ratings by Moody’s Investors Service unless noted otherwise. |
| All ratings are as of the date indicated and do not reflect subsequent changes. |
| * | Rated by Standard & Poor’s Corporation |
| @ | Rated by Fitch’s Investors Service |
| NR | Not Rated |
| ** | Security is segregated — see footnote 1(D) |
| (a) | Cost for federal income tax purposes is $153,163,456 and net unrealized appreciation of investments is as follows: |
| Unrealized appreciation | $ | 11,682,228 | ||||
| Unrealized depreciation | (48,687 | ) | ||||
|
| |||||
| Net unrealized appreciation | $ | 11,633,541 | ||||
|
|
Other Information
The following is a summary of the inputs used, as of December 31, 2020, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs | Municipal Bonds | |||||
Level 1 | Quoted Prices | $ | — | |||
Level 2 | Other Significant Observable Inputs | 164,796,997 | ||||
Level 3 | Significant Unobservable Inputs | — | ||||
|
| |||||
| $ | 164,796,997 | |||||
|
| |||||
The accompanying notes are an integral part of the financial statements.
26
Table of Contents
NORTH CAROLINA TAX-FREE INCOME SERIES
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2020 | UNAUDITED |
ASSETS: | ||||||||
Investments in securities, at fair value (Cost: $153,163,456) | $ | 164,796,997 | ||||||
Cash | 867,439 | |||||||
Receivable for fund shares sold | 40,443 | |||||||
Interest receivable | 1,459,241 | |||||||
|
| |||||||
Total assets | 167,164,120 | |||||||
LIABILITIES: | ||||||||
Payable for: | ||||||||
Distributions to shareholders | 335,527 | |||||||
Fund shares redeemed | 1,500,712 | |||||||
Investment advisory fee | 68,973 | |||||||
Transfer agent fee | 28,209 | |||||||
Professional fees | 17,195 | |||||||
Custodian expense | 4,239 | |||||||
Trustees fees | 3,049 | |||||||
Accrued expenses | 19,971 | |||||||
|
| |||||||
Total liabilities | 1,977,875 | |||||||
|
| |||||||
NET ASSETS: | ||||||||
Capital | 155,134,868 | |||||||
Total distributable earnings | 10,051,377 | |||||||
|
| |||||||
Net assets at value | $ | 165,186,245 | ||||||
|
| |||||||
NET ASSET VALUE, offering price and redemption price per share | $ | 12.08 | ||||||
|
|
STATEMENT OF OPERATIONS
For the six months ended December 31, 2020
Net investment income: |
| |||
Interest income | $ | 2,285,959 | ||
|
| |||
Expenses: |
| |||
Investment advisory fee | 394,676 | |||
Transfer agent fee | 102,523 | |||
Professional fees | 22,692 | |||
Custodian expense | 12,339 | |||
Trustees fees | 8,138 | |||
Pricing fees | 6,806 | |||
Registration fees | 3,805 | |||
Compliance fees | 3,630 | |||
Other expenses | 12,575 | |||
|
| |||
Total expenses | 567,184 | |||
Fees waived by Adviser (Note 2) | (6 | ) | ||
Custodian expense reduction | (25 | ) | ||
|
| |||
Net expenses | 567,153 | |||
|
| |||
Net investment income | 1,718,806 | |||
|
| |||
Realized and unrealized gain/(loss) on investments: | ||||
Net realized loss | (16 | ) | ||
Net change in unrealized appreciation/(depreciation) | 2,147,732 | |||
|
| |||
Net realized and unrealized gain on investments | 2,147,716 | |||
|
| |||
Net increase in net assets resulting from operations | $ | 3,866,522 | ||
|
| |||
The accompanying notes are an integral part of the financial statements.
27
Table of Contents
NORTH CAROLINA TAX-FREE INCOME SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended December 31, 2020 and the year ended June 30, 2020 | UNAUDITED |
| Six Months Ended 12/31/2020 | Year Ended 06/30/2020 | |||||||
Operations: | ||||||||
Net investment income | $ | 1,718,806 | $ | 3,527,438 | ||||
Net realized gain/(loss) on investments | (16 | ) | 172,081 | |||||
Net change in unrealized appreciation/(depreciation) | 2,147,732 | 3,013,563 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 3,866,522 | 6,713,082 | ||||||
Total distributions | (1,718,806 | ) | (3,527,438 | ) | ||||
Net fund share transactions (Note 4) | 1,672,785 | 12,102,173 | ||||||
|
|
|
| |||||
Total increase | 3,820,501 | 15,287,817 | ||||||
Net assets: | ||||||||
Beginning of year | 161,365,744 | 146,077,927 | ||||||
|
|
|
| |||||
End of period | $ | 165,186,245 | $ | 161,365,744 | ||||
|
|
|
| |||||
FINANCIAL HIGHLIGHTS
| Selected data for a share outstanding: | Six Months Ended 12/31/2020 | For the years ended June 30, | ||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||
Net asset value, beginning of year | $11.93 | $11.68 | $11.34 | $11.50 | $12.02 | $11.53 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.13 | 0.27 | 0.29 | 0.31 | 0.32 | 0.34 | ||||||||||||||||||
Net gains/(losses) on investments | 0.15 | 0.25 | 0.34 | (0.16 | ) | (0.52 | ) | 0.49 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.28 | 0.52 | 0.63 | 0.15 | (0.20 | ) | 0.83 | |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Distributions from net investment income | (0.13 | ) | (0.27 | ) | (0.29 | ) | (0.31 | ) | (0.32 | ) | (0.34 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $12.08 | $11.93 | $11.68 | $11.34 | $11.50 | $12.02 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 2.32% | (b) | 4.48% | 5.69% | 1.27% | (1.68 | )% | 7.28% | ||||||||||||||||
Net assets, end of period (in thousands) | $165,186 | $161,366 | $146,078 | $131,178 | $139,272 | $150,347 | ||||||||||||||||||
Ratio of net expenses to average net assets (a) | 0.69% | (c) | 0.69% | 0.70% | 0.70% | 0.69% | 0.70% | |||||||||||||||||
Ratio of gross expenses to average net assets | 0.69% | (c) | 0.69% | 0.71% | 0.71% | 0.69% | 0.70% | |||||||||||||||||
Ratio of net investment income to average net assets | 2.10% | (c) | 2.27% | 2.58% | 2.66% | 2.73% | 2.87% | |||||||||||||||||
Portfolio turnover | 1.37% | (b) | 9.88% | 13.02% | 11.76% | 11.50% | 6.09% | |||||||||||||||||
| (a) | Percentages are after expense waivers and reductions by the Adviser and Custodian. The Adviser and Custodian have agreed not to seek recovery of these waivers and reductions. |
| (b) | Not annualized |
| (c) | Annualized |
The accompanying notes are an integral part of the financial statements.
28
Table of Contents
DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE SHORT-TO-MEDIUM SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
North Carolina Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS |
| |||||||||||||||||
| 23.96% of Net Assets | ||||||||||||||||||
East Carolina University | 5.000 | % | 10/01/2027 | Aa3 | $ | 250,000 | $ | 306,328 | ||||||||||
Pitt County NC Limited Obligation | 5.000 | 04/01/2027 | Aa2 | 495,000 | 620,780 | |||||||||||||
University of NC Charlotte | 5.000 | 10/01/2025 | Aa3 | 110,000 | 132,976 | |||||||||||||
University of NC Charlotte | 5.000 | 04/01/2028 | Aa3 | 250,000 | 294,130 | |||||||||||||
University of NC Greensboro | 5.000 | 04/01/2025 | A+* | 10,000 | 10,110 | |||||||||||||
University of NC Greensboro | 5.000 | 04/01/2026 | Aa3 | 400,000 | 493,620 | |||||||||||||
University of NC Wilmington | 4.000 | 06/01/2029 | A1 | 750,000 | 844,686 | |||||||||||||
University of NC Wilmington Limited Obligation | 4.000 | 06/01/2030 | A1 | 200,000 | 223,926 | |||||||||||||
Western Carolina University | 5.000 | 10/01/2025 | Aa3 | 225,000 | 271,175 | |||||||||||||
|
| |||||||||||||||||
| 3,197,731 | ||||||||||||||||||
| REFUNDING BONDS | ||||||||||||||||||
| 17.57% of Net Assets | ||||||||||||||||||
Bertie County Limited Obligation** | 4.000 | 06/01/2022 | A2 | 200,000 | 210,540 | |||||||||||||
Charlotte NC Certificate of Participation | 4.000 | 06/01/2022 | Aa1 | 125,000 | 131,735 | |||||||||||||
Charlotte NC Certificate of Participation | 5.000 | 06/01/2023 | Aa1 | 25,000 | 27,885 | |||||||||||||
Charlotte NC Certificate of Participation | 4.000 | 06/01/2025 | Aa1 | 100,000 | 108,953 | |||||||||||||
Charlotte NC Certificate of Participation | 5.000 | 12/01/2025 | Aa2 | 100,000 | 122,702 | |||||||||||||
Dare County NC Limited Obligation | 5.000 | 06/01/2024 | Aa3 | 335,000 | 357,685 | |||||||||||||
Raleigh NC Limited ObligationRefunding | 5.000 | 10/01/2023 | Aa2 | 250,000 | 282,670 | |||||||||||||
Rockingham County NC Limited Obligation** | 5.000 | 04/01/2023 | Aa3 | 250,000 | 276,328 | |||||||||||||
Rockingham County NC Limited Obligation | 4.000 | 04/01/2024 | Aa3 | 105,000 | 117,338 | |||||||||||||
Sampson County NC Limited Obligation | 5.000 | 12/01/2023 | A1 | 165,000 | 186,831 | |||||||||||||
Sampson County NC Limited Obligation | 5.000 | 09/01/2025 | A1 | 125,000 | 150,656 | |||||||||||||
Sampson County NC Limited Obligation | 5.000 | 09/01/2026 | A1 | 210,000 | 261,005 | |||||||||||||
Warren County NC Limited Obligation** | 5.000 | 06/01/2023 | A1 | 100,000 | 110,924 | |||||||||||||
|
| |||||||||||||||||
| 2,345,252 | ||||||||||||||||||
| MUNICIPAL UTILITY REVENUE BONDS | ||||||||||||||||||
| 16.70% of Net Assets | ||||||||||||||||||
Brunswick County NC EnterpriseSystem Revenue** | 5.000 | 04/01/2027 | Aa3 | 250,000 | 296,665 | |||||||||||||
Cary NC Combined Enterprise Systems | 4.000 | 12/01/2028 | Aaa | 250,000 | 292,178 | |||||||||||||
Columbus County NC Limited Obligation | 5.000 | 06/01/2023 | A1 | 355,000 | 393,415 | |||||||||||||
Lincoln County NC Enterprise System Revenue | 5.000 | 08/01/2029 | AA* | 100,000 | 135,265 | |||||||||||||
Monroe NC Limited Obligation | 5.000 | 03/01/2028 | Aa3 | 95,000 | 116,288 | |||||||||||||
Monroe NC Limited Obligation | 5.000 | 03/01/2029 | Aa3 | 195,000 | 237,253 | |||||||||||||
NC Municipal Power Agency #1 Catawba Electric | 5.000 | 01/01/2028 | A* | 125,000 | 159,304 | |||||||||||||
NC Municipal Power Agency #1 Catawba Electric | 5.000 | 01/01/2028 | A* | 125,000 | 150,070 | |||||||||||||
Pender County NC Limited Obligation | 5.000 | 06/01/2027 | Aa3 | 100,000 | 127,583 | |||||||||||||
Pender County NC Limited Obligation | 5.000 | 06/01/2028 | Aa3 | 100,000 | 131,024 | |||||||||||||
Warren County NC Limited Obligation | 5.000 | 06/01/2027 | A1 | 160,000 | 190,022 | |||||||||||||
|
| |||||||||||||||||
| 2,229,067 | ||||||||||||||||||
| SCHOOL IMPROVEMENT BONDS | ||||||||||||||||||
| 11.16% of Net Assets | ||||||||||||||||||
Onslow County NC Limted Obligation | 5.000 | 06/01/2023 | Aa2 | 250,000 | 278,208 | |||||||||||||
Randolph County NC Limited Obligation | 5.000 | 10/01/2025 | Aa3 | 250,000 | 304,055 | |||||||||||||
Rutherford County NC Limited Obligation | 5.000 | 03/01/2028 | A1 | 75,000 | 97,018 | |||||||||||||
Scotland County NC | 5.000 | 12/01/2025 | A* | 270,000 | 324,853 | |||||||||||||
Scotland County NC | 5.000 | 12/01/2026 | A* | 250,000 | 308,605 | |||||||||||||
Scotland County NC | 5.000 | 12/01/2027 | A* | 140,000 | 177,012 | |||||||||||||
|
| |||||||||||||||||
| 1,489,751 | ||||||||||||||||||
| PUBLIC FACILITIES REVENUE BONDS | ||||||||||||||||||
| 8.26% of Net Assets | ||||||||||||||||||
Buncombe County NC Limited Obligation** | 5.000 | 06/01/2028 | Aa1 | 500,000 | 599,860 | |||||||||||||
Charlotte NC Certificate of Participation | 4.000 | 12/01/2022 | Aa1 | 170,000 | 175,912 | |||||||||||||
Monroe NC Limited Obligation | 5.000 | 04/01/2026 | AA* | 265,000 | 327,180 | |||||||||||||
|
| |||||||||||||||||
| 1,102,952 | ||||||||||||||||||
The accompanying notes are an integral part of the financial statements.
29
Table of Contents
DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE SHORT-TO-MEDIUM SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
North Carolina Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
| HOSPITAL AND HEALTHCARE REVENUE BONDS | ||||||||||||||||||
| 5.16% of Net Assets | ||||||||||||||||||
Charlotte-Mecklenburg NC Hospital Authority Health Care System | 5.000 | % | 01/15/2028 | Aa3 | $ | 225,000 | $ | 273,566 | ||||||||||
NC State Medical Care Commission Health Care Facilities | 4.000 | 06/01/2024 | A2 | 180,000 | 201,055 | |||||||||||||
North Carolina State Medical Care Commission Vidant Health | 5.000 | 06/01/2028 | A2 | 180,000 | 213,948 | |||||||||||||
|
| |||||||||||||||||
| 688,569 | ||||||||||||||||||
| TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS | ||||||||||||||||||
| 3.87% of Net Assets | ||||||||||||||||||
NC State Grant Anticipation Revenue Vehicle | 5.000 | 03/01/2029 | A2 | 120,000 | 141,368 | |||||||||||||
North Carolina State Anticipation Revenue Garvee | 5.000 | 03/01/2029 | A2 | 20,000 | 26,702 | |||||||||||||
North Carolina Turnpike Authority | 5.000 | 01/01/2029 | A2 | 285,000 | 348,438 | |||||||||||||
|
| |||||||||||||||||
| 516,508 | ||||||||||||||||||
| PREREFUNDED BONDS | ||||||||||||||||||
| 3.66% of Net Assets | ||||||||||||||||||
Union County NC Enterprise System Revenue | 4.000 | 12/01/2022 | Aa1 | 100,000 | 103,497 | |||||||||||||
University of NC Greensboro | 5.000 | 04/01/2025 | NR | 90,000 | 91,088 | |||||||||||||
Watauga NC Public FacillitiesCorporation Limited Obligation | 5.000 | 06/01/2023 | Aa3 | 275,000 | 293,664 | |||||||||||||
|
| |||||||||||||||||
| 488,249 | ||||||||||||||||||
| AD VALOREM PROPERTY BONDS | ||||||||||||||||||
| 2.13% of Net Assets | ||||||||||||||||||
Smithville Township NC** | 5.000 | 06/01/2024 | Aa3 | 250,000 | 283,868 | |||||||||||||
|
| |||||||||||||||||
| LEASE REVENUE BONDS | ||||||||||||||||||
| 1.96% of Net Assets | ||||||||||||||||||
Edgecombe County NC Limited Obligation** | 4.000 | 06/01/2022 | A2 | 250,000 | 261,210 | |||||||||||||
|
| |||||||||||||||||
| ESCROWED TO MATURITY BONDS | ||||||||||||||||||
| 1.74% of Net Assets | ||||||||||||||||||
NC Eastern Municipal Power Agency | 6.000 | 01/01/2022 | A3 | 220,000 | 232,465 | |||||||||||||
|
| |||||||||||||||||
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS | ||||||||||||||||||
| 1.05% of Net Assets | ||||||||||||||||||
Winston Salem NC Limited Obligation | 5.000 | 06/01/2023 | Aa1 | 125,000 | 139,523 | |||||||||||||
|
| |||||||||||||||||
Total Investments 97.22% of Net Assets (cost $12,167,922) (See (a) below for further explanation) |
| $ | 12,975,145 | |||||||||||||||
|
| |||||||||||||||||
Other assets in excess of liabilities 2.78% | 370,565 | |||||||||||||||||
|
| |||||||||||||||||
Net Assets 100% | $ | 13,345,710 | ||||||||||||||||
|
| |||||||||||||||||
| # | Ratings by Moody’s Investors Service unless noted otherwise. |
| All ratings are as of the date indicated and do not reflect subsequent changes. |
| * | Rated by Standard & Poor’s Corporation |
| @ | Rated by Fitch’s Investors Service |
| NR | Not Rated |
| ** | Security is segregated — see footnote 1(D) |
| (a) | Cost for federal income tax purposes is $12,167,922 and net unrealized appreciation of investments is as follows: |
| Unrealized appreciation | $ | 808,594 | ||||
| Unrealized depreciation | (1,371 | ) | ||||
|
| |||||
| Net unrealized appreciation | $ | 807,223 | ||||
|
|
Other Information
The following is a summary of the inputs used, as of December 31, 2020, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs | Municipal Bonds | |||||
Level 1 | Quoted Prices | $ | — | |||
Level 2 | Other Significant Observable Inputs | 12,975,145 | ||||
Level 3 | Significant Unobservable Inputs | — | ||||
|
| |||||
| $ | 12,975,145 | |||||
|
| |||||
The accompanying notes are an integral part of the financial statements.
30
Table of Contents
NORTH CAROLINA TAX-FREE SHORT-TO-MEDIUM SERIES
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2020 | UNAUDITED |
ASSETS: | ||||||||
Investments in securities, at fair value (Cost: $12,167,922) | $ | 12,975,145 | ||||||
Cash | 301,389 | |||||||
Interest receivable | 105,723 | |||||||
|
| |||||||
Total assets | 13,382,257 | |||||||
LIABILITIES: | ||||||||
Payable for: | ||||||||
Distributions to shareholders | 5,063 | |||||||
Fund shares redeemed | 2,571 | |||||||
Investment advisory fee | 2,771 | |||||||
Transfer agent fee | 1,672 | |||||||
Professional fees | 8,504 | |||||||
Custodian fees | 2,576 | |||||||
Trustees fees | 1,615 | |||||||
Accrued expenses | 11,775 | |||||||
|
| |||||||
Total liabilities | 36,547 | |||||||
|
| |||||||
NET ASSETS: | ||||||||
Capital | 12,538,487 | |||||||
Total distributable earnings | 807,223 | |||||||
|
| |||||||
Net assets at value | $ | 13,345,710 | ||||||
|
| |||||||
NET ASSET VALUE, offering price and redemption price per share | $ | 11.26 | ||||||
|
|
STATEMENT OF OPERATIONS
For the six months ended December 31, 2020
Net investment income: | ||||
Interest income | $ | 151,741 | ||
|
| |||
Expenses: | ||||
Investment advisory fee | 33,524 | |||
Transfer agent fee | 10,057 | |||
Registration expense | 4,797 | |||
Custodian expense | 3,875 | |||
Compliance fees | 3,496 | |||
Pricing fees | 2,874 | |||
Professional fees | 1,880 | |||
Trustees fees | 676 | |||
Other expenses | 3,242 | |||
|
| |||
Total expenses | 64,421 | |||
Fees waived by Adviser (Note 2) | (17,498 | ) | ||
Custodian expense reduction | (8 | ) | ||
|
| |||
Net expenses | 46,915 | |||
|
| |||
Net investment income | 104,826 | |||
Net change in unrealized appreciation/(depreciation) | 71,574 | |||
|
| |||
Net increase in net assets resulting from operations | $ | 176,400 | ||
|
|
The accompanying notes are an integral part of the financial statements.
31
Table of Contents
NORTH CAROLINA TAX-FREE SHORT-TO-MEDIUM SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended December 31, 2020 and the year ended June 30, 2020 | UNAUDITED |
| Six Months Ended 12/31/2020 | Year Ended 06/30/2020 | |||||||
Operations: | ||||||||
Net investment income | $ | 104,826 | $ | 274,467 | ||||
Net realized gain on investments | — | 151,048 | ||||||
Net change in unrealized appreciation/(depreciation) | 71,574 | 80,007 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 176,400 | 505,522 | ||||||
Total distributions | (106,336 | ) | (274,467 | ) | ||||
Net fund share transactions (Note 4) | 298,480 | (6,757,665 | ) | |||||
|
|
|
| |||||
Total increase/(decrease) | 368,544 | (6,526,610 | ) | |||||
Net assets: | ||||||||
Beginning of year | 12,977,166 | 19,503,776 | ||||||
|
|
|
| |||||
End of period | $ | 13,345,710 | $ | 12,977,166 | ||||
|
|
|
| |||||
FINANCIAL HIGHLIGHTS
| Selected data for a share outstanding: | Six Months Ended 12/31/2020 | For the years ended June 30, | ||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||
Net asset value, beginning of year | $11.20 | $11.02 | $10.64 | $10.85 | $11.05 | $10.94 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.09 | 0.17 | 0.17 | 0.16 | 0.16 | 0.17 | ||||||||||||||||||
Net gains/(losses) on investments | 0.06 | 0.18 | 0.38 | (0.21 | ) | (0.20 | ) | 0.11 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.15 | 0.35 | 0.55 | (0.05 | ) | (0.04 | ) | 0.28 | ||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Distributions from net investment income | (0.09 | ) | (0.17 | ) | (0.17 | ) | (0.16 | ) | (0.16 | ) | (0.17 | ) | ||||||||||||
Distributions from capital gains | 0.00 | (b) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $11.26 | $11.20 | $11.02 | $10.64 | $10.85 | $11.05 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 1.34% | (c) | 3.24% | 5.19% | (0.45 | )% | (0.33 | )% | 2.59% | |||||||||||||||
Net assets, end of period (in thousands) | $13,346 | $12,977 | $19,504 | $22,267 | $21,930 | $25,134 | ||||||||||||||||||
Ratio of net expenses to average net assets (a) | 0.70% | (d) | 0.70% | 0.70% | 0.70% | 0.73% | 0.83% | |||||||||||||||||
Ratio of gross expenses to average net assets | 0.97% | (d) | 0.91% | 0.88% | 0.86% | 0.82% | 0.83% | |||||||||||||||||
Ratio of net investment income to average net assets | 1.58% | (d) | 1.56% | 1.55% | 1.50% | 1.49% | 1.56% | |||||||||||||||||
Portfolio turnover | 1.17% | (c) | 9.59% | 13.59% | 21.80% | 11.15% | 24.05% | |||||||||||||||||
| (a) | Percentages are after expense waivers and reductions by the Adviser and Custodian. The Adviser and Custodian have agreed not to seek recovery of these waivers and reductions. |
| (b) | Rounds to less than $0.01. |
| (c) | Not annualized |
| (d) | Annualized |
The accompanying notes are an integral part of the financial statements.
32
Table of Contents
DUPREE MUTUAL FUNDS — TENNESSEE TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Tennessee Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
| MUNICIPAL UTILITY REVENUE BONDS | ||||||||||||||||||
| 34.72% of Net Assets | ||||||||||||||||||
Bristol TN Electric Revenue | 5.000 | % | 09/01/2038 | AA-* | $ | 1,525,000 | $ | 1,696,639 | ||||||||||
Chattanooga TN Electric Revenue | 5.000 | 09/01/2035 | AA* | 250,000 | 297,873 | |||||||||||||
Chattanooga TN Electric Revenue | 5.000 | 09/01/2040 | AA* | 2,325,000 | 2,746,802 | |||||||||||||
Clarksville TN Electric System Revenue | 4.000 | 09/01/2034 | Aa2 | 500,000 | 588,380 | |||||||||||||
Clarksville TN Water Sewer & Gas Revenue | 4.000 | 02/01/2036 | Aa2 | 1,475,000 | 1,745,840 | |||||||||||||
Clarksville TN Water Sewer & Gas Revenue | 4.000 | 02/01/2038 | Aa2 | 820,000 | 965,706 | |||||||||||||
Columbia TN Waterworks Revenue | 5.000 | 12/01/2032 | Aa3 | 885,000 | 921,037 | |||||||||||||
Franklin TN Water & Sewer Revenue and Tax Authority | 5.000 | 04/01/2024 | Aaa | 750,000 | 867,090 | |||||||||||||
Franklin TN Water & Sewer System Revenue | 4.000 | 02/01/2036 | Aa3 | 250,000 | 288,723 | |||||||||||||
Hallsdale-Powell TN Utility District Knox County Water & Sewer | 4.000 | 04/01/2035 | AA* | 315,000 | 358,366 | |||||||||||||
Hallsdale-Powell TN Utility District Knox County Water & Sewer | 4.000 | 04/01/2038 | AA* | 1,000,000 | 1,129,520 | |||||||||||||
Harpeth Valley TN Utilities District | 5.000 | 09/01/2034 | AA+* | 500,000 | 580,850 | |||||||||||||
Harpeth Valley TN Utilities District | 5.000 | 09/01/2040 | AA+* | 1,000,000 | 1,073,550 | |||||||||||||
Harpeth Valley Utilities | 4.000 | 09/01/2045 | AA+* | 150,000 | 177,425 | |||||||||||||
Harpeth Valley Utilities | 4.000 | 09/01/2050 | AA+* | 250,000 | 293,728 | |||||||||||||
Knox Chapman TN Utility District | 4.500 | 01/01/2027 | AA-* | 1,000,000 | 1,082,850 | |||||||||||||
Knox Chapman TN Utility District | 5.000 | 01/01/2031 | AA-* | 250,000 | 291,255 | |||||||||||||
Knox Chapman TN Utility District | 5.000 | 01/01/2033 | AA-* | 250,000 | 292,330 | |||||||||||||
Memphis TN Gas System Revenue | 4.000 | 12/01/2034 | Aa1 | 775,000 | 903,875 | |||||||||||||
Memphis TN Gas System Revenue | 4.000 | 12/01/2036 | Aa1 | 800,000 | 943,592 | |||||||||||||
Memphis TN Gas System Revenue** | 4.000 | 12/01/2037 | Aa1 | 1,310,000 | 1,540,390 | |||||||||||||
Memphis TN Storm Water System Revenue | 5.000 | 10/01/2038 | Aa3 | 500,000 | 625,035 | |||||||||||||
Metropolitan Government Nashville & Davidson County Electric | 5.000 | 05/15/2036 | AA* | 500,000 | 571,525 | |||||||||||||
Metropolitan Government Nashville & Davidson County Electric** | 5.000 | 05/15/2036 | AA* | 3,085,000 | 3,135,964 | |||||||||||||
Metropolitan Government Nashville & Davidson County Electric | 5.000 | 05/15/2039 | AA* | 500,000 | 569,905 | |||||||||||||
Metropolitan Government Nashville & Davidson County Water & Sewer** | 5.000 | 07/01/2030 | Aa2 | 3,250,000 | 3,630,151 | |||||||||||||
Metropolitan Government Nashville & Davidson County Water & Sewer | 5.000 | 07/01/2031 | Aa2 | 500,000 | 558,620 | |||||||||||||
Metropolitan Government Nashville & Davidson County Water & Sewer | 5.000 | 07/01/2033 | Aa2 | 575,000 | 640,728 | |||||||||||||
Metropolitan Government Nashville & Davidson County Water & Sewer | 5.000 | 07/01/2037 | Aa2 | 250,000 | 310,470 | |||||||||||||
Metropolitan Government Nashville & Davidson County Water & Sewer** | 5.000 | 07/01/2040 | Aa2 | 2,265,000 | 2,507,740 | |||||||||||||
Watauga River Regional Water Authority TN Waterworks | 4.000 | 07/01/2037 | A* | 270,000 | 312,198 | |||||||||||||
Williamson County Utilities | 4.000 | 09/01/2041 | AA* | 500,000 | 597,635 | |||||||||||||
|
| |||||||||||||||||
| 32,245,792 | ||||||||||||||||||
| SCHOOL IMPROVEMENT BONDS | ||||||||||||||||||
| 11.92% of Net Assets | ||||||||||||||||||
Coffee County TN | 4.000 | 06/01/2037 | AA-* | 500,000 | 599,360 | |||||||||||||
Coffee County TN | 4.000 | 06/01/2041 | AA-* | 620,000 | 735,655 | |||||||||||||
Franklin TN Special School District | 5.000 | 06/01/2039 | Aa1 | 250,000 | 323,518 | |||||||||||||
Johnson City TN | 4.000 | 06/01/2036 | Aa2 | 1,150,000 | 1,393,720 | |||||||||||||
Montgomery County TN | 4.000 | 04/01/2036 | AA* | 260,000 | 305,417 | |||||||||||||
Montgomery County TN | 4.000 | 04/01/2037 | AA* | 1,920,000 | 2,246,534 | |||||||||||||
Rhea County TN** | 5.000 | 04/01/2029 | A1 | 1,385,000 | 1,463,985 | |||||||||||||
Shelby County TN | 5.000 | 04/01/2037 | Aa1 | 500,000 | 619,505 | |||||||||||||
Wilson County TN | 4.000 | 04/01/2039 | AA+* | 1,495,000 | 1,707,350 | |||||||||||||
Wilson County TN 10th Special School District | 4.000 | 04/01/2033 | AA-* | 655,000 | 782,476 | |||||||||||||
Wilson County TN 10th Special School District | 4.000 | 04/01/2037 | AA-* | 200,000 | 240,552 | |||||||||||||
Wilson County TN 10th Special School District | 4.000 | 04/01/2039 | AA-* | 550,000 | 658,202 | |||||||||||||
|
| |||||||||||||||||
| 11,076,274 | ||||||||||||||||||
| PUBLIC FACILITIES REVENUE BONDS | ||||||||||||||||||
| 10.79% of Net Assets | ||||||||||||||||||
Memphis Shelby County TN Industrial Development Board | 5.000 | 11/01/2030 | Aa3 | 1,250,000 | 1,531,825 | |||||||||||||
Memphis TN Refunding General Improvement | 5.000 | 04/01/2031 | Aa2 | 800,000 | 918,984 | |||||||||||||
Metropolitan Government Nashville & Davidson County Convention Center | 5.000 | 07/01/2026 | A1 | 630,000 | 631,562 | |||||||||||||
Metropolitan Government Nashville & Davidson County Sports Authority | 5.000 | 08/01/2031 | Aa3 | 1,500,000 | 1,656,675 | |||||||||||||
Metropolitan Government Nashville & Davidson County Sports Authority | 5.000 | 08/01/2038 | Aa3 | 755,000 | 831,414 | |||||||||||||
Pigeon Forge Industrial Development Board | 5.000 | 06/01/2027 | Aa3 | 1,400,000 | 1,427,020 | |||||||||||||
The accompanying notes are an integral part of the financial statements.
33
Table of Contents
DUPREE MUTUAL FUNDS — TENNESSEE TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Tennessee Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
Pigeon Forge Industrial Development Board** | 5.000 | % | 06/01/2029 | AA* | $ | 2,120,000 | $ | 2,159,728 | ||||||||||
Pigeon Forge Industrial Development Board | 5.000 | 06/01/2034 | AA* | 850,000 | 865,683 | |||||||||||||
|
| |||||||||||||||||
| 10,022,891 | ||||||||||||||||||
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS |
| |||||||||||||||||
| 8.31% of Net Assets | ||||||||||||||||||
Franklin County TN Health & Education Facilities Board Revenue | 5.000 | 09/01/2030 | A+* | 200,000 | 214,882 | |||||||||||||
Shelby County TN Health Education & Housing Facilities Board Rhodes College | 4.000 | 08/01/2036 | A2 | 920,000 | 1,053,372 | |||||||||||||
Shelby County TN Health Education & Housing Facilities Board Rhodes College | 4.000 | 08/01/2037 | A2 | 1,030,000 | 1,176,373 | |||||||||||||
Shelby County TN Health Education & Housing Facilities Board Rhodes College | 4.000 | 08/01/2040 | A2 | 875,000 | 991,883 | |||||||||||||
TN State School Bond Authority Higher Educational Facilities | 5.000 | 11/01/2037 | Aa1 | 700,000 | 813,932 | |||||||||||||
TN State School Bond Authority Higher Educational Facilities | 5.000 | 11/01/2040 | Aa1 | 2,000,000 | 2,391,140 | |||||||||||||
TN State School Bond Authority Higher Educational Facilities | 5.000 | 11/01/2043 | Aa1 | 1,000,000 | 1,077,990 | |||||||||||||
|
| |||||||||||||||||
| 7,719,572 | ||||||||||||||||||
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS | ||||||||||||||||||
| 8.20% of Net Assets | ||||||||||||||||||
Memphis Shelby County TN Port Authority Community Development | 5.000 | 04/01/2035 | Aa3 | 625,000 | 631,200 | |||||||||||||
Memphis TN | 4.000 | 06/01/2041 | Aa2 | 1,120,000 | 1,278,916 | |||||||||||||
Memphis TN Refunding and General Impact General Obligation | 5.000 | 05/01/2036 | Aa2 | 850,000 | 862,427 | |||||||||||||
Metropolitan Government Nashville & Davidson County TN | 4.000 | 07/01/2033 | Aa2 | 1,470,000 | 1,742,803 | |||||||||||||
Metropolitan Government Nashville & Davidson County TN | 4.000 | 07/01/2034 | Aa2 | 500,000 | 590,375 | |||||||||||||
Metropolitan Government Nashville & Davidson County TN | 4.000 | 07/01/2036 | Aa2 | 500,000 | 598,145 | |||||||||||||
TN State Series A | 5.000 | 02/01/2036 | Aaa | 1,500,000 | 1,912,830 | |||||||||||||
|
| |||||||||||||||||
| 7,616,696 | ||||||||||||||||||
| PREREFUNDED BONDS | ||||||||||||||||||
| 8.06% of Net Assets | ||||||||||||||||||
Clarksville TN Water Sewer & Gas Revenue | 5.000 | 02/01/2033 | Aa2 | 500,000 | 549,760 | |||||||||||||
Clarksville TN Water Sewer & Gas Revenue | 5.000 | 02/01/2038 | Aa2 | 1,000,000 | 1,099,520 | |||||||||||||
Gallatin TN Water & Sewer Revenue | 5.000 | 01/01/2032 | AA* | 235,000 | 275,401 | |||||||||||||
Johnson City TN Health & Educational Facilities Escrowed | 5.125 | 07/01/2025 | NR | 40,000 | 40,154 | |||||||||||||
Memphis TN Electric System Revenue | 5.000 | 12/01/2031 | Aa2 | 225,000 | 266,436 | |||||||||||||
Memphis TN Electric System Revenue | 5.000 | 12/01/2034 | Aa2 | 1,250,000 | 1,479,124 | |||||||||||||
Shelby County TN Health Education & Housing Facilities | 5.000 | 05/01/2027 | A1 | 750,000 | 796,868 | |||||||||||||
Shelby County TN Health Education & Housing Facilities Board Rhodes College | 5.000 | 08/01/2030 | A2 | 500,000 | 513,895 | |||||||||||||
Shelby County TN Health Education & Housing Facilities Board Rhodes College | 5.000 | 08/01/2040 | A2/A+* | 650,000 | 739,570 | |||||||||||||
Watauga River TN Regional Water Authority Waterworks | 5.000 | 07/01/2034 | A* | 500,000 | 534,910 | |||||||||||||
West Wilson Utility District TN Waterworks | 5.000 | 06/01/2033 | NR | 1,170,000 | 1,193,330 | |||||||||||||
|
| |||||||||||||||||
| 7,488,968 | ||||||||||||||||||
| HOSPITAL AND HEALTHCARE REVENUE BONDS | ||||||||||||||||||
| 7.04% of Net Assets | ||||||||||||||||||
Metropolitan Government Nashville & Davidson County TN Health | 5.000 | 07/01/2035 | A3 | 2,500,000 | 2,964,625 | |||||||||||||
Metropolitan Government Nashville & Davidson County TN Health | 5.000 | 07/01/2040 | A3 | 950,000 | 1,115,585 | |||||||||||||
Shelby County TN Health Education & Housing Facilities | 5.000 | 05/01/2036 | A1 | 1,535,000 | 1,855,308 | |||||||||||||
Shelby County TN Health Education & Housing Facilities — LeBonheur | 5.000 | 05/01/2035 | A1 | 500,000 | 606,355 | |||||||||||||
|
| |||||||||||||||||
| 6,541,873 | ||||||||||||||||||
| REFUNDING BONDS | ||||||||||||||||||
| 5.22% of Net Assets | ||||||||||||||||||
Blount County TN | 5.000 | 06/01/2037 | Aa2 | 1,000,000 | 1,205,690 | |||||||||||||
Jackson TN Refunding | 4.000 | 06/01/2037 | AA* | 405,000 | 491,192 | |||||||||||||
Memphis TN General Improvement | 5.000 | 04/01/2034 | Aa2 | 500,000 | 572,965 | |||||||||||||
Memphis TN General Improvement | 5.000 | 04/01/2039 | Aa2 | 250,000 | 284,308 | |||||||||||||
Memphis TN Refunding | 5.000 | 04/01/2030 | Aa2 | 1,000,000 | 1,150,129 | |||||||||||||
Memphis TN Refunding | 5.000 | 04/01/2033 | Aa2 | 250,000 | 286,833 | |||||||||||||
Memphis TN Refunding | 5.000 | 04/01/2035 | Aa2 | 250,000 | 286,045 | |||||||||||||
Memphis TN Refunding | 5.000 | 04/01/2040 | Aa2 | 500,000 | 568,440 | |||||||||||||
|
| |||||||||||||||||
| 4,845,602 | ||||||||||||||||||
The accompanying notes are an integral part of the financial statements.
34
Table of Contents
DUPREE MUTUAL FUNDS — TENNESSEE TAX-FREE INCOME SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Tennessee Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
| AIRPORT REVENUE BONDS | ||||||||||||||||||
| 2.76% of Net Assets | ||||||||||||||||||
Metropolitan Nashville Airport Authority | 5.000 | % | 07/01/2034 | A1 | $ | 800,000 | $ | 934,312 | ||||||||||
Metropolitan Nashville Airport Authority | 5.000 | 07/01/2035 | A1 | 250,000 | 290,900 | |||||||||||||
Metropolitan Nashville Airport Authority | 5.000 | 07/01/2040 | A1 | 1,160,000 | 1,338,222 | |||||||||||||
|
| |||||||||||||||||
| 2,563,434 | ||||||||||||||||||
| INDUSTRIAL REVENUE BONDS | ||||||||||||||||||
| .93% of Net Assets | ||||||||||||||||||
Industrial Development Board TN Blount County | 5.000 | 06/01/2027 | Aa3 | 850,000 | 866,618 | |||||||||||||
|
| |||||||||||||||||
Total Investments 97.95% of Net Assets (cost $84,529,539) (See (a) below for further explanation) |
| $ | 90,987,720 | |||||||||||||||
|
| |||||||||||||||||
Other assets in excess of liabilities 2.05% | 1,902,622 | |||||||||||||||||
|
| |||||||||||||||||
Net Assets 100% | $ | 92,890,342 | ||||||||||||||||
|
| |||||||||||||||||
| # | Ratings by Moody’s Investors Service unless noted otherwise. |
| All ratings are as of the date indicated and do not reflect subsequent changes. |
| * | Rated by Standard & Poor’s Corporation |
| @ | Rated by Fitch’s Investors Service |
| NR | Not Rated |
| ** | Security is segregated — see footnote 1(D) |
| (a) | Cost for federal income tax purposes is $84,529,539 and net unrealized appreciation of investments is as follows: |
| Unrealized appreciation | $ | 6,458,181 | ||||
| Unrealized depreciation | — | |||||
|
| |||||
| Net unrealized appreciation | $ | 6,458,181 | ||||
|
|
Other Information
The following is a summary of the inputs used, as of December 31, 2020, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs | Municipal Bonds | |||||
Level 1 | Quoted Prices | $ | — | |||
Level 2 | Other Significant Observable Inputs | 90,987,720 | ||||
Level 3 | Significant Unobservable Inputs | — | ||||
|
| |||||
| $ | 90,987,720 | |||||
|
| |||||
The accompanying notes are an integral part of the financial statements.
35
Table of Contents
TENNESSEE TAX-FREE INCOME SERIES
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2020 | UNAUDITED |
ASSETS: | ||||||||
Investments in securities, at fair value (Cost: $84,529,539) | $ | 90,987,720 | ||||||
Cash | 1,153,308 | |||||||
Interest receivable | 1,099,869 | |||||||
|
| |||||||
Total assets | 93,240,897 | |||||||
LIABILITIES: | ||||||||
Payable for: | ||||||||
Distributions to shareholders | 209,288 | |||||||
Fund shares redeemed | 56,947 | |||||||
Investment advisory fee | 39,889 | |||||||
Transfer agent fee | 10,189 | |||||||
Professional fees | 22,627 | |||||||
Trustee fees | 2,169 | |||||||
Custodian expense | 3,792 | |||||||
Accrued expenses | 5,654 | |||||||
|
| |||||||
Total liabilities | 350,555 | |||||||
|
| |||||||
NET ASSETS: | ||||||||
Capital | 86,641,492 | |||||||
Total distributable earnings | 6,248,850 | |||||||
|
| |||||||
Net assets at value | $ | 92,890,342 | ||||||
|
| |||||||
NET ASSET VALUE, offering price and redemption price per share | $ | 11.75 | ||||||
|
|
STATEMENT OF OPERATIONS
For the six months ended December 31, 2020
Net investment income: | ||||
Interest income | $ | 1,424,920 | ||
|
| |||
Expenses: | ||||
Investment advisory fee | 234,792 | |||
Transfer agent fee | 59,375 | |||
Professional fees | 13,154 | |||
Custodian expense | 8,230 | |||
Trustees fees | 4,720 | |||
Pricing fees | 3,411 | |||
Compliance fees | 3,277 | |||
Registration fees | 2,172 | |||
Other expenses | 5,133 | |||
|
| |||
Total expenses | 334,264 | |||
Fees waived by Adviser (Note 2) | (5,494 | ) | ||
Custodian expense reduction | (17 | ) | ||
|
| |||
Net expenses | 328,753 | |||
|
| |||
Net investment income | 1,096,167 | |||
|
| |||
Realized and unrealized gain on investments: | ||||
Net realized gain | 119,431 | |||
Net change in unrealized appreciation/(depreciation) | 671,955 | |||
|
| |||
Net realized and unrealized gain on investments | 791,386 | |||
|
| |||
Net increase in net assets resulting from operations | $ | 1,887,553 | ||
|
|
The accompanying notes are an integral part of the financial statements.
36
Table of Contents
TENNESSEE TAX-FREE INCOME SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended December 31, 2020 and the year ended June 30, 2020 | UNAUDITED |
| Six Months Ended 12/31/2020 | Year Ended 06/30/2020 | |||||||
Operations: | ||||||||
Net investment income | $ | 1,096,167 | $ | 2,425,813 | ||||
Net realized gain on investments | 119,431 | 122,701 | ||||||
Net change in unrealized appreciation/(depreciation) | 671,955 | 1,102,071 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 1,887,553 | 3,650,585 | ||||||
Total distributions | (1,119,364 | ) | (2,425,813 | ) | ||||
Net fund share transactions (Note 4) | (3,558,053 | ) | (9,751,519 | ) | ||||
|
|
|
| |||||
Total decrease | (2,789,864 | ) | (8,526,747 | ) | ||||
Net assets: | ||||||||
Beginning of year | 95,680,206 | 104,206,953 | ||||||
|
|
|
| |||||
End of period | $ | 92,890,342 | $ | 95,680,206 | ||||
|
|
|
| |||||
FINANCIAL HIGHLIGHTS
| Selected data for a share outstanding: | Six Months Ended 12/31/2020 | For the years ended June 30, | ||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||
Net asset value, beginning of year | $11.66 | $11.51 | $11.24 | $11.44 | $11.89 | $11.51 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.14 | 0.28 | 0.30 | 0.31 | 0.33 | 0.34 | ||||||||||||||||||
Net gains/(losses) on securities | 0.09 | 0.15 | 0.27 | (0.20 | ) | (0.45 | ) | 0.38 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.23 | 0.43 | 0.57 | 0.11 | (0.12 | ) | 0.72 | |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Distributions from net investment income | (0.14 | ) | (0.28 | ) | (0.30 | ) | (0.31 | ) | (0.33 | ) | (0.34 | ) | ||||||||||||
Distributions from capital gains | 0.00 | (d) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $11.75 | $11.66 | $11.51 | $11.24 | $11.44 | $11.89 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 1.99% | (b) | 3.77% | 5.12% | 0.94% | (1.03 | )% | 6.40% | ||||||||||||||||
Net assets, end of period (in thousands) | $92,890 | $95,680 | $104,207 | $108,121 | $108,260 | $116,831 | ||||||||||||||||||
Ratio of net expenses to average net assets (a) | 0.70% | (c) | 0.70% | 0.70% | 0.70% | 0.70% | 0.71% | |||||||||||||||||
Ratio of gross expenses to average net assets | 0.72% | (c) | 0.71% | 0.71% | 0.71% | 0.71% | 0.71% | |||||||||||||||||
Ratio of net investment income to average net assets | 2.36% | (c) | 2.42% | 2.63% | 2.70% | 2.82% | 2.96% | |||||||||||||||||
Portfolio turnover | 0.64% | (b) | 3.46% | 6.46% | 15.77% | 9.27% | 9.67% | |||||||||||||||||
| (a) | Percentages are after expense waivers and reductions by the Adviser and Custodian. The Adviser and Custodian have agreed not to seek recovery of these waivers and reductions. |
| (b) | Not annualized |
| (c) | Annualized |
| (d) | Rounds to less than $0.01 |
The accompanying notes are an integral part of the financial statements.
37
Table of Contents
DUPREE MUTUAL FUNDS — TENNESSEE TAX-FREE SHORT-TO-MEDIUM SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Tennessee Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
| REFUNDING BONDS | ||||||||||||||||||
| 23.47% of Net Assets | ||||||||||||||||||
Maryville TN | 5.000 | % | 06/01/2026 | Aa3 | $ | 350,000 | $ | 436,183 | ||||||||||
Memphis TN General Improvement** | 5.000 | 11/01/2023 | Aa2 | 350,000 | 397,229 | |||||||||||||
Memphis-Shelby County TN Industrial Development Board | 5.000 | 11/01/2027 | Aa3 | 200,000 | 248,812 | |||||||||||||
Metropolitan Government Nashville & Davidson County TN | 5.000 | 07/01/2021 | Aa2 | 75,000 | 75,113 | |||||||||||||
Metropolitan Government Nashville & Davidson County TN | 4.000 | 07/01/2023 | Aa2 | 110,000 | 110,131 | |||||||||||||
Metropolitan Government Nashville & Davidson County TN | 4.000 | 07/01/2024 | Aa2 | 80,000 | 84,526 | |||||||||||||
Putnam County TN | 4.000 | 04/01/2025 | Aa2 | 100,000 | 115,384 | |||||||||||||
|
| |||||||||||||||||
| 1,467,378 | ||||||||||||||||||
| PUBLIC FACILITIES REVENUE BONDS | ||||||||||||||||||
| 22.11% of Net Assets | ||||||||||||||||||
Memphis TN Center City Revenue Finance Corporation Sports Facility | 4.000 | 02/01/2022 | Aa3 | 220,000 | 229,115 | |||||||||||||
Memphis-Shelby County TN Industrial Development Board | 5.000 | 11/01/2024 | Aa3 | 250,000 | 293,180 | |||||||||||||
Metropolitan Government Nashville & Davidson County TN Sports Authority | 5.000 | 07/01/2023 | Aa3 | 125,000 | 139,489 | |||||||||||||
Metropolitan Government Nashville & Davidson County TN Sports Authority | 5.250 | 08/01/2024 | Aa3 | 190,000 | 212,665 | |||||||||||||
Metropolitan Government Nashville & Davidson County TN Sports Authority | 5.250 | 08/01/2025 | Aa3 | 195,000 | 218,047 | |||||||||||||
Metropolitan Government Nashville & Davidson County TN Sports Authority | 5.250 | 08/01/2026 | Aa3 | 100,000 | 111,792 | |||||||||||||
Pigeon Forge Industrial Development Board | 5.000 | 06/01/2024 | AA* | 175,000 | 178,421 | |||||||||||||
|
| |||||||||||||||||
| 1,382,709 | ||||||||||||||||||
| MUNICIPAL UTILITY REVENUE BONDS | ||||||||||||||||||
| 21.73% of Net Assets | ||||||||||||||||||
Chattanooga TN Electric Revenue ** | 5.000 | 09/01/2023 | AA* | 250,000 | 281,755 | |||||||||||||
Erwin TN Utilities Authority Electric System | 5.000 | 09/01/2026 | A* | 50,000 | 61,643 | |||||||||||||
Hallsdale-Powell TN Utility District | 4.000 | 04/01/2028 | AA* | 255,000 | 298,587 | |||||||||||||
Maryville TN | 4.000 | 06/01/2029 | Aa3 | 250,000 | 292,180 | |||||||||||||
Metropolitan Government Nashville & Davidson County TN Water & Sewer | 5.000 | 07/01/2026 | Aa2 | 100,000 | 111,884 | |||||||||||||
Springfield TN | 5.000 | 06/01/2027 | Aa3 | 245,000 | 313,110 | |||||||||||||
|
| |||||||||||||||||
| 1,359,159 | ||||||||||||||||||
| SCHOOL IMPROVEMENT BONDS | ||||||||||||||||||
| 13.65% of Net Assets | ||||||||||||||||||
Bedford County TN | 4.000 | 04/01/2027 | AA* | 250,000 | 294,430 | |||||||||||||
Rhea County TN | 4.000 | 04/01/2025 | A1 | 250,000 | 260,985 | |||||||||||||
White County TN | 4.000 | 06/01/2027 | AA-* | 260,000 | 298,105 | |||||||||||||
|
| |||||||||||||||||
| 853,520 | ||||||||||||||||||
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS |
| |||||||||||||||||
| 10.25% of Net Assets | ||||||||||||||||||
Franklin County TN Health & Educational Facilities Board | 4.000 | 09/01/2024 | A+* | 135,000 | 143,111 | |||||||||||||
Shelby County TN Health Educational & Housing Facilities Rhodes College | 5.000 | 08/01/2022 | A2 | 120,000 | 128,426 | |||||||||||||
Shelby County TN Health Educational & Housing Facilities Rhodes College | 4.000 | 08/01/2025 | A2 | 100,000 | 114,421 | |||||||||||||
Shelby County TN Health Educational & Housing Facilities Rhodes College | 4.000 | 08/01/2027 | A2 | 225,000 | 254,840 | |||||||||||||
|
| |||||||||||||||||
| 640,798 | ||||||||||||||||||
| PREREFUNDED BONDS | ||||||||||||||||||
| 2.00% of Net Assets | ||||||||||||||||||
Memphis TN Center City Revenue Finance Corporation | 5.250 | 11/01/2025 | Aa3 | 100,000 | 104,194 | |||||||||||||
Metropolitan Government Nashville & Davidson County TN | 4.000 | 07/01/2024 | NR | 20,000 | 21,132 | |||||||||||||
|
| |||||||||||||||||
| 125,326 | ||||||||||||||||||
| AIRPORT REVENUE BONDS | ||||||||||||||||||
| 1.74% of Net Assets | ||||||||||||||||||
Metropolitan Nashville Airport Authority | 4.000 | 07/01/2023 | A1 | 100,000 | 108,972 | |||||||||||||
|
| |||||||||||||||||
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS | ||||||||||||||||||
| .64% of Net Assets | ||||||||||||||||||
Selmer TN | 4.000 | 06/01/2025 | AA* | 35,000 | 40,328 | |||||||||||||
|
| |||||||||||||||||
Total Investments 95.59% of Net Assets (cost $5,629,188) (See (a) below for further explanation) |
| $ | 5,978,190 | |||||||||||||||
|
| |||||||||||||||||
Other assets in excess of liabilities 4.41% | 275,777 | |||||||||||||||||
|
| |||||||||||||||||
Net Assets 100% | $ | 6,253,967 | ||||||||||||||||
|
| |||||||||||||||||
The accompanying notes are an integral part of the financial statements.
38
Table of Contents
DUPREE MUTUAL FUNDS — TENNESSEE TAX-FREE SHORT-TO-MEDIUM SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Tennessee Municipal Bonds
December 31, 2020
# Ratings by Moody’s Investors Service unless noted otherwise. All ratings are as of the date indicated and do not reflect subsequent changes. * Rated by Standard & Poor’s Corporation @ Rated by Fitch’s Investors Service NR Not Rated ** Security is segregated — see footnote 1(D) |
| (a) | Cost for federal income tax purposes is $5,629,188 and net unrealized appreciation of investments is as follows: |
| Unrealized appreciation | $ | 349,002 | ||||
| Unrealized depreciation | — | |||||
|
| |||||
| Net unrealized appreciation | $ | 349,002 | ||||
|
|
Other Information
The following is a summary of the inputs used, as of December 31, 2020, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs | Municipal Bonds | |||||
Level 1 | Quoted Prices | $ | — | |||
Level 2 | Other Significant Observable Inputs | 5,978,190 | ||||
Level 3 | Significant Unobservable Inputs | — | ||||
|
| |||||
| $ | 5,978,190 | |||||
|
| |||||
The accompanying notes are an integral part of the financial statements.
39
Table of Contents
TENNESSEE TAX-FREE SHORT-TO-MEDIUM SERIES
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2020 | UNAUDITED |
ASSETS: | ||||||||
Investments in securities, at fair value (Cost: $5,629,188) | $ | 5,978,190 | ||||||
Cash | 232,011 | |||||||
Interest receivable | 64,124 | |||||||
|
| |||||||
Total assets | 6,274,325 | |||||||
LIABILITIES: | ||||||||
Payable for: | ||||||||
Distributions to shareholders | 1,978 | |||||||
Fund shares redeemed | 1,430 | |||||||
Investment advisory fee | 723 | |||||||
Professional fees | 4,636 | |||||||
Custodian expense | 1,757 | |||||||
Transfer agent fee | 923 | |||||||
Trustees fees | 812 | |||||||
Accrued expenses | 8,099 | |||||||
|
| |||||||
Total liabilities | 20,358 | |||||||
|
| |||||||
NET ASSETS: | ||||||||
Capital | 6,156,082 | |||||||
Total distributable earnings | 97,885 | |||||||
|
| |||||||
Net assets at value | $ | 6,253,967 | ||||||
|
| |||||||
NET ASSET VALUE, offering price and redemption price per share | $ | 11.03 | ||||||
|
|
STATEMENT OF OPERATIONS
For the six months ended December 31, 2020
Net investment income: | ||||
Interest income | $ | 72,759 | ||
|
| |||
Expenses: | ||||
Investment advisory fee | 15,979 | |||
Transfer agent fee | 4,794 | |||
Registration fees | 4,200 | |||
Custodian expense | 3,508 | |||
Compliance fees | 3,312 | |||
Pricing fees | 2,024 | |||
Professional fees | 906 | |||
Trustees fees | 325 | |||
Other expenses | 1,306 | |||
|
| |||
Total expenses | 36,354 | |||
Fees waived by Adviser (Note 2) | (13,918 | ) | ||
Custodian expense reduction | (7 | ) | ||
|
| |||
Net expenses | 22,429 | |||
|
| |||
Net investment income | 50,330 | |||
|
| |||
Realized and unrealized gain/(loss) on investments: | ||||
Net realized gain | 18,464 | |||
Net change in unrealized appreciation/(depreciation) | (9,143 | ) | ||
|
| |||
Net realized and unrealized gain on investments | 9,321 | |||
|
| |||
Net increase in net assets resulting from operations | $ | 59,651 | ||
|
|
The accompanying notes are an integral part of the financial statements.
40
Table of Contents
TENNESSEE TAX-FREE SHORT-TO-MEDIUM SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended December 31, 2020 and the year ended June 30, 2020 | UNAUDITED |
| Six Months Ended 12/31/2020 | Year Ended 06/30/2020 | |||||||
Operations: | ||||||||
Net investment income | $ | 50,330 | $ | 111,556 | ||||
Net realized gain on investments | 18,464 | 1,796 | ||||||
Net change in unrealized appreciation/(depreciation) | (9,143 | ) | 122,943 | |||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 59,651 | 236,295 | ||||||
Total distributions | (50,330 | ) | (111,556 | ) | ||||
Net fund share transactions (Note 4) | (355,605 | ) | (763,504 | ) | ||||
|
|
|
| |||||
Total decrease | (346,284 | ) | (638,765 | ) | ||||
Net assets: | ||||||||
Beginning of year | 6,600,251 | 7,239,016 | ||||||
|
|
|
| |||||
End of period | $ | 6,253,967 | $ | 6,600,251 | ||||
|
|
|
| |||||
FINANCIAL HIGHLIGHTS
| Selected data for a share outstanding: | Six Months Ended 12/31/2020 | For the years ended June 30, | ||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||
Net asset value, beginning of year | $11.02 | $10.82 | $10.52 | $10.70 | $10.93 | $10.74 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.09 | 0.17 | 0.17 | 0.16 | 0.17 | 0.16 | ||||||||||||||||||
Net gains/(losses) on securities | 0.01 | 0.20 | 0.30 | (0.18 | ) | (0.23 | ) | 0.19 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.10 | 0.37 | 0.47 | (0.02 | ) | (0.06 | ) | 0.35 | ||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Distributions from net investment income | (0.09 | ) | (0.17 | ) | (0.17 | ) | (0.16 | ) | (0.17 | ) | (0.16 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $11.03 | $11.02 | $10.82 | $10.52 | $10.70 | $10.93 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 0.89% | (b) | 3.49% | 4.48% | (0.17 | )% | (0.54 | )% | 3.28% | |||||||||||||||
Net assets, end of period (in thousands) | $6,254 | $6,600 | $7,239 | $10,003 | $10,499 | $11,340 | ||||||||||||||||||
Ratio of net expenses to average net assets (a) | 0.70% | (c) | 0.70% | 0.71% | 0.70% | 0.75% | 0.86% | |||||||||||||||||
Ratio of gross expenses to average net assets | 1.15% | (c) | 1.14% | 1.08% | 0.98% | 0.88% | 0.86% | |||||||||||||||||
Ratio of net investment income to average net assets | 1.59% | (c) | 1.60% | 1.57% | 1.53% | 1.59% | 1.47% | |||||||||||||||||
Portfolio turnover | 0.00% | (b) | 4.55% | 10.64% | 22.75% | 10.95% | 7.37% | |||||||||||||||||
| (a) | Percentages are after expense waivers and reductions by the Adviser and Custodian. The Adviser and Custodian have agreed not to seek recovery of these waivers and reductions. |
| (b) | Not annualized |
| (c) | Annualized |
The accompanying notes are an integral part of the financial statements.
41
Table of Contents
DUPREE MUTUAL FUNDS — INTERMEDIATE GOVERNMENT BOND SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
U.S. Government Securities and Agencies
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
| FEDERAL FARM CREDIT | ||||||||||||||||||
| 65.02% of Net Assets | ||||||||||||||||||
Federal Farm Credit Bank | 5.050 | % | 12/21/2021 | Aaa | $ | 370,000 | $ | 387,374 | ||||||||||
Federal Farm Credit Bank** | 5.250 | 05/10/2022 | Aaa | 2,000,000 | 2,138,460 | |||||||||||||
Federal Farm Credit Bank** | 5.840 | 07/20/2022 | Aaa | 2,650,000 | 2,883,996 | |||||||||||||
Federal Farm Credit Bank** | 5.250 | 10/25/2022 | Aaa | 1,500,000 | 1,638,251 | |||||||||||||
Federal Farm Credit Bank | 5.125 | 11/28/2022 | Aaa | 2,000,000 | 2,188,530 | |||||||||||||
Federal Farm Credit Bank | 2.375 | 08/01/2029 | Aaa | 1,000,000 | 1,116,521 | |||||||||||||
|
| |||||||||||||||||
| 10,353,132 | ||||||||||||||||||
| FEDERAL HOME LOAN BANK | ||||||||||||||||||
| 28.29% of Net Assets | ||||||||||||||||||
Federal Home Loan Bank | 5.000 | 12/10/2021 | Aaa | 250,000 | 261,283 | |||||||||||||
Federal Home Loan Bank | 5.750 | 06/10/2022 | Aaa | 2,000,000 | 2,161,457 | |||||||||||||
Federal Home Loan Bank | 5.365 | 09/09/2024 | Aaa | 1,750,000 | 2,081,545 | |||||||||||||
|
| |||||||||||||||||
| 4,504,285 | ||||||||||||||||||
| FEDERAL HOME LOAN MORTAGE CORPORATION | ||||||||||||||||||
| 3.11% of Net Assets | ||||||||||||||||||
Federal Home Loan Mortage Corporation | 1.400 | 07/28/2032 | Aaa | 500,000 | 495,534 | |||||||||||||
|
| |||||||||||||||||
Total Investments 96.42% of Net Assets (cost $14,522,331) (See (a) below for further explanation) |
| $ | 15,352,951 | |||||||||||||||
|
| |||||||||||||||||
Other assets in excess of liabilities 3.58% | 569,431 | |||||||||||||||||
|
| |||||||||||||||||
Net Assets 100% | $ | 15,922,382 | ||||||||||||||||
|
| |||||||||||||||||
| # | Ratings by Moody’s Investors Service unless noted otherwise. |
| All ratings are as of the date indicated and do not reflect subsequent changes. |
| * | Rated by Standard & Poor’s Corporation |
| @ | Rated by Fitch’s Investors Service |
| NR | Not Rated |
| ** | Security is segregated — see footnote 1(D) |
| (a) | Cost for federal income tax purposes is $14,522.331 and net unrealized appreciation of investments is as follows: |
| Unrealized appreciation | $ | 834,587 | ||||
| Unrealized depreciation | (3,967 | ) | ||||
|
| |||||
| Net unrealized appreciation | $ | 830,620 | ||||
|
|
Other Information
The following is a summary of the inputs used, as of December 31, 2020, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs | Government Agencies | |||||
Level 1 | Quoted Prices | $ | — | |||
Level 2 | Other Significant Observable Inputs | 15,352,951 | ||||
Level 3 | Significant Unobservable Inputs | — | ||||
|
| |||||
| $ | 15,352,951 | |||||
|
| |||||
The accompanying notes are an integral part of the financial statements.
42
Table of Contents
INTERMEDIATE GOVERNMENT BOND SERIES
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2020 | UNAUDITED |
ASSETS: | ||||||||
Investments in securities, at fair value (Cost: $14,522,331) | $ | 15,352,951 | ||||||
Cash | 438,094 | |||||||
Interest receivable | 159,510 | |||||||
|
| |||||||
Total assets | 15,950,555 | |||||||
LIABILITIES: | ||||||||
Payable for: | ||||||||
Distributions to shareholders | 4,340 | |||||||
Fund shares redeemed | 297 | |||||||
Investment advisory fee | 2,691 | |||||||
Transfer agent fee | 2,018 | |||||||
Professional fees | 5,493 | |||||||
Custodian expense | 3,788 | |||||||
Trustees fees | 723 | |||||||
Accrued expenses | 8,823 | |||||||
|
| |||||||
Total liabilities | 28,173 | |||||||
|
| |||||||
NET ASSETS: | ||||||||
Capital | 15,232,883 | |||||||
Total distributable earnings | 689,499 | |||||||
|
| |||||||
Net assets at value | $ | 15,922,382 | ||||||
|
| |||||||
NET ASSET VALUE, offering price and redemption price per share | $ | 10.26 | ||||||
|
|
STATEMENT OF OPERATIONS
For the six months ended December 31, 2020
Net investment income: | ||||
Interest income | $ | 231,436 | ||
|
| |||
Expenses: | ||||
Investment advisory fee | 15,931 | |||
Transfer agent fee | 11,948 | |||
Registration expense | 5,702 | |||
Custodian expense | 4,237 | |||
Compliance fees | 3,680 | |||
Pricing fees | 3,496 | |||
Printing expense | 2,760 | |||
Professional fees | 2,207 | |||
Trustees fees | 792 | |||
Other expenses | 2,246 | |||
|
| |||
Total expenses | 52,999 | |||
Fees waived by Adviser (Note 2) | (92 | ) | ||
Custodian expense reduction | (9 | ) | ||
|
| |||
Net expenses | 52,898 | |||
|
| |||
Net investment income | 178,538 | |||
Net change in unrealized appreciation/(depreciation) | (163,392 | ) | ||
|
| |||
Net increase in net assets resulting from operations | $ | 15,146 | ||
|
|
The accompanying notes are an integral part of the financial statements.
43
Table of Contents
INTERMEDIATE GOVERNMENT BOND SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended December 31, 2020 and the year ended June 30, 2020 | UNAUDITED |
| Six Months Ended 12/31/2020 | Year Ended 06/30/2020 | |||||||
Operations: | ||||||||
Net investment income | $ | 178,538 | $ | 360,002 | ||||
Net realized gain on investments | — | 11,595 | ||||||
Net change in unrealized appreciation/(depreciation) | (163,392 | ) | 365,868 | |||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 15,146 | 737,465 | ||||||
Total distributions | (178,538 | ) | (360,002 | ) | ||||
Net fund share transactions (Note 4) | 408,350 | 172,086 | ||||||
|
|
|
| |||||
Total increase | 244,958 | 549,549 | ||||||
Net assets: | ||||||||
Beginning of year | 15,677,424 | 15,127,875 | ||||||
|
|
|
| |||||
End of period | $ | 15,922,382 | $ | 15,677,424 | ||||
|
|
|
| |||||
FINANCIAL HIGHLIGHTS
| Selected data for a share outstanding: | Six Months Ended 12/31/2020 | For the years ended June 30, | ||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||
Net asset value, beginning of year | $10.37 | $10.12 | $9.87 | $10.23 | $10.70 | $10.29 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.12 | 0.24 | 0.25 | 0.25 | 0.26 | 0.26 | ||||||||||||||||||
Net gains/(losses) on securities | (0.11 | ) | 0.25 | 0.25 | (0.36 | ) | (0.47 | ) | 0.41 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.01 | 0.49 | 0.50 | (0.11 | ) | (0.21 | ) | 0.67 | ||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Distributions from net investment income | (0.12 | ) | (0.24 | ) | (0.25 | ) | (0.25 | ) | (0.26 | ) | (0.26 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $10.26 | $10.37 | $10.12 | $9.87 | $10.23 | $10.70 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 0.06% | (b) | 4.88% | 5.12% | (1.05 | )% | (1.99 | )% | 6.57% | |||||||||||||||
Net assets, end of period (in thousands) | $15,922 | $15,677 | $15,128 | $15,033 | $15,606 | $17,476 | ||||||||||||||||||
Ratio of net expenses to average net assets (a) | 0.67% | (c) | 0.68% | 0.69% | 0.61% | 0.58% | 0.53% | |||||||||||||||||
Ratio of gross expenses to average net assets | 0.67% | (c) | 0.68% | 0.69% | 0.61% | 0.58% | 0.53% | |||||||||||||||||
Ratio of net investment income to average net assets | 2.26% | (c) | 2.33% | 2.50% | 2.53% | 2.49% | 2.47% | |||||||||||||||||
Portfolio turnover | 0.00% | (b) | 5.07% | 0.00% | 1.99% | 0.00% | 0.00% | |||||||||||||||||
| (a) | Percentages are after expenses waived by Adviser and Custodian reduction. No recovery of these waivers and reductions will be sought. |
| (b) | Not annualized |
| (c) | Annualized |
The accompanying notes are an integral part of the financial statements.
44
Table of Contents
DUPREE MUTUAL FUNDS — TAXABLE MUNICIPAL BOND SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Taxable Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
| MUNICIPAL UTILITY REVENUE BONDS | ||||||||||||||||||
| 31.51% of Net Assets | ||||||||||||||||||
Alexandria LA Utilities | 3.087 | % | 05/01/2043 | AA* | $ | 300,000 | $ | 325,692 | ||||||||||
Barnesville GA Water & Sewer | 3.175 | 09/01/2046 | AA* | 250,000 | 259,390 | |||||||||||||
Benton WA Public Water Authority | 3.200 | 10/01/2044 | AA* | 200,000 | 210,294 | |||||||||||||
Cleveland OH Water | 3.205 | 01/01/2042 | Aa2 | 250,000 | 262,890 | |||||||||||||
Eagle River CO Water & Sanitation District | 3.010 | 12/01/2042 | AA* | 325,000 | 332,933 | |||||||||||||
Franklin County WA Pulbic Utility District | 2.974 | 09/01/2041 | A1 | 150,000 | 153,473 | |||||||||||||
Grant County WA Public Utility District | 3.336 | 01/01/2041 | Aa3 | 125,000 | 134,945 | |||||||||||||
Lansing MI Board of Water & Light Utilities | 3.525 | 07/01/2041 | Aa3 | 300,000 | 325,572 | |||||||||||||
Louisville & Jefferson County KY Metropolitan Sewer District | 2.650 | 05/15/2044 | Aa3 | 400,000 | 397,920 | |||||||||||||
Metropolitan Government Nashville & Davidson County TN Recovery Zone | 6.693 | 07/01/2041 | Aa2 | 200,000 | 329,008 | |||||||||||||
OK State Municipal Power Authority | 6.310 | 01/01/2040 | A2 | 95,000 | 136,478 | |||||||||||||
OK State Water Resources Board State Loan Program | 2.910 | 10/01/2045 | AAA* | 200,000 | 201,520 | |||||||||||||
Pasco WA Water & Sewer Revenue | 3.272 | 12/01/2040 | AA-* | 245,000 | 259,048 | |||||||||||||
Pigeon Forge TN Build America Recovery Zone | 7.125 | 06/01/2040 | AA* | 300,000 | 372,867 | |||||||||||||
Russellville AR Water & Sewer | 2.816 | 07/01/2040 | AA* | 245,000 | 249,322 | |||||||||||||
South Central CT Regional Water Authority | 3.262 | 08/01/2044 | Aa3 | 250,000 | 258,580 | |||||||||||||
West Knox Utilities District Knox County TN Water and Sewer** | 6.900 | 06/01/2040 | AA+* | 400,000 | 432,516 | |||||||||||||
Williamsport PA Municipal Water Authority Build America | 6.100 | 01/01/2040 | A2 | 60,000 | 60,032 | |||||||||||||
|
| |||||||||||||||||
| 4,702,480 | ||||||||||||||||||
| PUBLIC FACILITIES REVENUE BONDS | ||||||||||||||||||
| 13.83% of Net Assets | ||||||||||||||||||
Evanston IL Taxable Corporate Purpose Bonds | 4.250 | 12/01/2038 | Aa2 | 275,000 | 306,012 | |||||||||||||
Franklin County OH Convention Facilities Build America | 6.540 | 12/01/2036 | Aa2 | 155,000 | 228,024 | |||||||||||||
Metropolitan Government Nashville & Davidson County TN | 7.431 | 07/01/2043 | A1 | 190,000 | 296,835 | |||||||||||||
Montgomery AL Community Cooperative District | 2.815 | 11/01/2049 | Aa1 | 200,000 | 203,040 | |||||||||||||
Oklahoma State Capitol Improvement Authority | 3.078 | 07/01/2040 | AA-* | 250,000 | 260,645 | |||||||||||||
Pompano Beach FL Certificate of Participation | 5.579 | 01/01/2040 | A1 | 225,000 | 254,144 | |||||||||||||
Rhode Island Convention Center | 6.060 | 05/15/2035 | Aa3 | 70,000 | 90,749 | |||||||||||||
Tuscon AZ Certificate of Participation | 4.831 | 07/01/2034 | A1 | 130,000 | 158,856 | |||||||||||||
Wilmington NC Limited Obligation | 3.090 | 06/01/2040 | Aa1 | 250,000 | 264,675 | |||||||||||||
|
| |||||||||||||||||
| 2,062,980 | ||||||||||||||||||
| PREREFUNDED BONDS | ||||||||||||||||||
| 8.82% of Net Assets | ||||||||||||||||||
Armstrong School District PA Build America** | 7.000 | 03/15/2041 | AA* | 750,000 | 760,215 | |||||||||||||
CO State Building Excellent Schools Today Certificate of Participation** | 7.017 | 03/15/2031 | Aa2 | 400,000 | 405,368 | |||||||||||||
Decatur GA Urban Redevelopment Agency Revenue Build America | 6.920 | 01/01/2038 | Aa1 | 150,000 | 150,000 | |||||||||||||
|
| |||||||||||||||||
| 1,315,583 | ||||||||||||||||||
| SCHOOL IMPROVEMENT BONDS | ||||||||||||||||||
| 8.81% of Net Assets | ||||||||||||||||||
Jefferson County TN Build America Bonds | 6.625 | 06/01/2040 | Aa3 | 250,000 | 281,440 | |||||||||||||
Scotts Bluff County NE School District | 2.519 | 12/01/2039 | AA-* | 250,000 | 256,842 | |||||||||||||
Sedgwick County KS Unified School District | 3.002 | 10/01/2043 | Aa3 | 250,000 | 262,120 | |||||||||||||
Westminster CO Public Schools Certificates of Participation | 3.100 | 12/01/2040 | A1 | 250,000 | 253,847 | |||||||||||||
White Settlement TX Independent School District | 2.843 | 08/15/2045 | AAA* | 250,000 | 260,118 | |||||||||||||
|
| |||||||||||||||||
| 1,314,367 | ||||||||||||||||||
| REFUNDING BONDS | ||||||||||||||||||
| 8.22% of Net Assets | ||||||||||||||||||
Bangor ME | 2.546 | 07/15/2042 | Aa2 | 250,000 | 253,383 | |||||||||||||
Homewood AL Warrants | 2.753 | 09/01/2046 | Aa2 | 250,000 | 256,047 | |||||||||||||
Leeds AL | 3.097 | 05/01/2048 | AA* | 300,000 | 312,702 | |||||||||||||
Oxford AL | 2.684 | 01/01/2045 | Aa2 | 400,000 | 404,608 | |||||||||||||
|
| |||||||||||||||||
| 1,226,740 | ||||||||||||||||||
The accompanying notes are an integral part of the financial statements.
45
Table of Contents
DUPREE MUTUAL FUNDS — TAXABLE MUNICIPAL BOND SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Taxable Municipal Bonds
December 31, 2020
| Bond Description | Coupon | Maturity Date | Rating# | Par Value | Fair Value | |||||||||||||
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS |
| |||||||||||||||||
| 6.53% of Net Assets | ||||||||||||||||||
Mesa CO State College Auxiliary | 5.800 | % | 05/15/2040 | Aa2 | $ | 170,000 | $ | 247,138 | ||||||||||
Mesa State College CO Auxiliary Facilities Build America | 6.746 | 05/15/2042 | Aa2 | 100,000 | 160,941 | |||||||||||||
Michigan State University Revenues | 4.496 | 08/15/2048 | Aa2 | 375,000 | 429,592 | |||||||||||||
OK Development Finance Authority | 2.930 | 06/01/2041 | AA-* | 135,000 | 135,884 | |||||||||||||
|
| |||||||||||||||||
| 973,555 | ||||||||||||||||||
| STATE AND LOCAL MORTGAGE/HOUSING REVENUE BONDS |
| |||||||||||||||||
| 4.45% of Net Assets | ||||||||||||||||||
TN Housing Development Agency | 3.104 | 07/01/2040 | Aa1 | 250,000 | 254,575 | |||||||||||||
TN Housing Development Agency | 3.254 | 01/01/2045 | Aa1 | 150,000 | 153,066 | |||||||||||||
VA State Housing Development | 3.130 | 11/01/2045 | Aa1 | 250,000 | 256,805 | |||||||||||||
|
| |||||||||||||||||
| 664,446 | ||||||||||||||||||
| HOSPITAL AND HEALTHCARE REVENUE BONDS | ||||||||||||||||||
| 3.48% of Net Assets | ||||||||||||||||||
Midland County TX Hospital District | 6.440 | 05/15/2039 | Aa3 | 185,000 | 267,769 | |||||||||||||
University NC Chapel Hill Hospital Revenue Build America | 6.329 | 02/01/2031 | Aa3 | 250,000 | 251,010 | |||||||||||||
|
| |||||||||||||||||
| 518,779 | ||||||||||||||||||
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS | ||||||||||||||||||
| 3.08% of Net Assets | ||||||||||||||||||
KY State Property & Buildings Build America** | 5.921 | 11/01/2030 | A1 | 250,000 | 322,627 | |||||||||||||
Leeds AL Taxable Warrants | 4.125 | 05/01/2039 | AA* | 125,000 | 136,170 | |||||||||||||
|
| |||||||||||||||||
| 458,797 | ||||||||||||||||||
| TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS | ||||||||||||||||||
| 2.98% of Net Assets | ||||||||||||||||||
Washoe County NV Highway Revenue | 7.969 | 02/01/2040 | Aa3 | 280,000 | 444,122 | |||||||||||||
|
| |||||||||||||||||
| MARINA/PORT AUTHORITY REVENUE BONDS | ||||||||||||||||||
| 2.15% of Net Assets | ||||||||||||||||||
Miami Dade County FL Special Obligation | 7.500 | 04/01/2040 | Aa3 | 200,000 | 321,304 | |||||||||||||
|
| |||||||||||||||||
| AD VALOREM PROPERTY BONDS | ||||||||||||||||||
| 1.78% of Net Assets | ||||||||||||||||||
Parker CO Water & Sanitation District | 3.062 | 08/01/2040 | AA+* | 250,000 | 265,193 | |||||||||||||
|
| |||||||||||||||||
| MASS TRANSIT BONDS | ||||||||||||||||||
| 1.74% of Net Assets | ||||||||||||||||||
Dallas Area Rapid Transit | 3.039 | 12/01/2043 | Aa2 | 250,000 | 259,758 | |||||||||||||
|
| |||||||||||||||||
| AIRPORT REVENUE BONDS | ||||||||||||||||||
| .87% of Net Assets | ||||||||||||||||||
Tri-Cities TN Airport Authority Revenue | 3.625 | 05/01/2038 | Aa2 | 125,000 | 130,010 | |||||||||||||
|
| |||||||||||||||||
Total Investments 98.25% of Net Assets (cost $13,551,464) (See (a) below for further explanation) |
| $ | 14,658,114 | |||||||||||||||
|
| |||||||||||||||||
Other assets in excess of liabilities 1.75% | 260,544 | |||||||||||||||||
|
| |||||||||||||||||
Net Assets 100% | $ | 14,918,658 | ||||||||||||||||
|
| |||||||||||||||||
| # | Ratings by Moody’s Investors Service unless noted otherwise. |
| All ratings are as of the date indicated and do not reflect subsequent changes. |
| * | Rated by Standard & Poor’s Corporation |
| @ | Rated by Fitch’s Investors Service |
| NR | Not Rated |
| ** | Security is segregated — see footnote 1(D) |
| (a) | Cost for federal income tax purposes is $13,580,726 and net unrealized appreciation of investments is as follows: |
| Unrealized appreciation | $ | 1,090,658 | ||||
| Unrealized depreciation | (13,270 | ) | ||||
|
| |||||
| Net unrealized appreciation | $ | 1,077,388 | ||||
|
|
The accompanying notes are an integral part of the financial statements.
46
Table of Contents
DUPREE MUTUAL FUNDS — TAXABLE MUNICIPAL BOND SERIES | UNAUDITED |
SCHEDULE OF PORTFOLIO INVESTMENTS
Taxable Municipal Bonds
December 31, 2020
Other Information
The following is a summary of the inputs used, as of December 31, 2020, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs | Taxable Municipal Bonds | |||||
Level 1 | Quoted Prices | $ | — | |||
Level 2 | Other Significant Observable Inputs | 14,658,114 | ||||
Level 3 | Significant Unobservable Inputs | — | ||||
|
| |||||
| $ | 14,658,114 | |||||
|
| |||||
The accompanying notes are an integral part of the financial statements.
47
Table of Contents
TAXABLE MUNICIPAL BOND SERIES
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2020 | UNAUDITED |
ASSETS: | ||||||||
Investments in securities, at fair value (Cost: $13,551,464) | $ | 14,658,114 | ||||||
Cash | 177,322 | |||||||
Interest receivable | 148,436 | |||||||
|
| |||||||
Total assets | 14,983,872 | |||||||
LIABILITIES: | ||||||||
Payable for: | ||||||||
Distributions to shareholders | 33,702 | |||||||
Fund shares redeemed | 1,244 | |||||||
Investment advisory fee | 2,978 | |||||||
Transfer agent fee | 1,857 | |||||||
Professional fees | 5,508 | |||||||
Custodian expense | 3,738 | |||||||
Trustees fees | 7,643 | |||||||
Accrued expenses | 8,544 | |||||||
|
| |||||||
Total liabilities | 65,214 | |||||||
|
| |||||||
NET ASSETS: | ||||||||
Capital | 13,847,989 | |||||||
Total distributable earnings | 1,070,669 | |||||||
|
| |||||||
Net assets at value | $ | 14,918,658 | ||||||
|
| |||||||
NET ASSET VALUE, offering price and redemption price per share | $ | 10.42 | ||||||
|
|
STATEMENT OF OPERATIONS
For the six months ended December 31, 2020
Net investment income: | ||||
Interest income | $ | 315,019 | ||
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Expenses: | ||||
Investment advisory fee | 36,293 | |||
Transfer agent fee | 10,888 | |||
Registration expense | 8,959 | |||
Custodian expense | 4,276 | |||
Compliance fees | 3,630 | |||
Pricing fees | 2,329 | |||
Professional fees | 1,946 | |||
Trustees fees | 698 | |||
Other expenses | 1,674 | |||
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Total expenses | 70,693 | |||
Fees waived by Adviser (Note 2) | (19,843 | ) | ||
Custodian expense reduction | (9 | ) | ||
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Net expenses | 50,841 | |||
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Net investment income | 264,178 | |||
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Realized and unrealized gain on investments: | ||||
Net realized gain | 9,248 | |||
Net change in unrealized appreciation/(depreciation) | 104,339 | |||
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Net realized and unrealized loss on investments | 113,587 | |||
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Net increase in net assets resulting from operations | $ | 377,765 | ||
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The accompanying notes are an integral part of the financial statements.
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Table of Contents
TAXABLE MUNICIPAL BOND SERIES
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended December 31, 2020 and the year ended June 30, 2020 | UNAUDITED |
| Six Months Ended 12/31/2020 | Year Ended 06/30/2020 | |||||||
Operations: | ||||||||
Net investment income | $ | 264,178 | $ | 584,117 | ||||
Net realized gain on investments | 9,248 | 123,316 | ||||||
Net change in unrealized appreciation/(depreciation) | 104,339 | (65,148 | ) | |||||
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Net increase in net assets resulting from operations | 377,765 | 642,285 | ||||||
Total distributions | (350,538 | ) | (629,639 | ) | ||||
Net fund share transactions (Note 4) | 1,169,074 | 1,470,928 | ||||||
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Total increase | 1,196,301 | 1,483,574 | ||||||
Net assets: | ||||||||
Beginning of year | 13,722,357 | 12,238,783 | ||||||
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End of period | $ | 14,918,658 | $ | 13,722,357 | ||||
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FINANCIAL HIGHLIGHTS
| Selected data for a share outstanding: | Six Months Ended 12/31/2020 | For the years ended June 30, | ||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||
Net asset value, beginning of period | $10.40 | $10.39 | $10.24 | $10.48 | $10.98 | $10.53 | ||||||||||||||||||
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Income from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.19 | 0.52 | 0.51 | 0.51 | 0.47 | 0.50 | ||||||||||||||||||
Net gains/(losses) on securities | 0.08 | 0.01 | 0.15 | (0.24 | ) | (0.43 | ) | 0.45 | ||||||||||||||||
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Total from investment operations | 0.27 | 0.53 | 0.66 | 0.27 | 0.04 | 0.95 | ||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
Distributions from net investment income | (0.19 | ) | (0.52 | ) | (0.51 | ) | (0.51 | ) | (0.47 | ) | (0.50 | ) | ||||||||||||
Distributions from capital gains | (0.06 | ) | 0.00 | 0.00 | 0.00 | (0.07 | ) | 0.00 | ||||||||||||||||
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Total distributions | (0.25 | ) | (0.52 | ) | (0.51 | ) | (0.51 | ) | (0.54 | ) | (0.50 | ) | ||||||||||||
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Net asset value, end of period | $10.42 | $10.40 | $10.39 | $10.24 | $10.48 | $10.98 | ||||||||||||||||||
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Total return | 2.63% | (b) | 5.20% | 6.64% | 2.66% | 0.78% | 9.29% | |||||||||||||||||
Net assets, end of period (in thousands) | $14,919 | $13,722 | $12,239 | $10,957 | $11,037 | $12,180 | ||||||||||||||||||
Ratio of net expenses to average net assets (a) | 0.70% | (c) | 0.70% | 0.70% | 0.70% | 0.62% | 0.86% | |||||||||||||||||
Ratio of gross expenses to average net assets | 0.98% | (c) | 1.02% | 1.00% | 0.92% | 0.74% | 0.86% | |||||||||||||||||
Ratio of net investment income to average net assets | 3.67% | (c) | 4.62% | 4.99% | 4.95% | 4.79% | 4.71% | |||||||||||||||||
Portfolio turnover | 21.92% | (b) | 16.28% | 3.58% | 4.31% | 11.04% | 10.55% | |||||||||||||||||
| (a) | Percentages are after expense waivers and reductions by the Adviser and Custodian. The Adviser and Custodian have agreed not to seek recovery of these waivers and reductions. |
| (b) | Not annualized |
| (c) | Annualized |
The accompanying notes are an integral part of the financial statements.
49
Table of Contents
DUPREE MUTUAL FUNDS | UNAUDITED |
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
| 1. | Organization and Significant Accounting Policies |
Dupree Mutual Funds is registered under the Investment Company Act of 1940, as amended, as a no-load, open-end investment company. The Declaration of Trust of Dupree Mutual Funds (the “Trust”) permits the Board of Trustees (the “Board”) to create an unlimited number of series of investment portfolios (each a “Fund” and collectively, the “Funds”) and with respect to each series to issue an unlimited number of full or fractional shares of a single class. The Trust currently offers ten series:
Alabama Tax-Free Income Series
Kentucky Tax-Free Income Series
Kentucky Tax-Free Short-to-Medium Series
Mississippi Tax-Free Income Series
North Carolina Tax-Free Income Series
North Carolina Tax-Free Short-to-Medium Series
Tennessee Tax-Free Income Series
Tennessee Tax-Free Short-to-Medium Series
Intermediate Government Bond Series
Taxable Municipal Bond Series
The investment strategy of the eight state tax-free funds is to maintain 100% of their investments in their respective states of Alabama, Kentucky, Mississippi, North Carolina, or Tennessee municipal securities.
The Intermediate Government Bond Series’ investment strategy is to invest only in obligations of the U.S. Treasury and Agencies of the U.S. Government. The Intermediate Government Bond Series will buy bonds and notes that will maintain an average maturity of no more than ten years.
The Taxable Municipal Bond Series’ investment strategy is to invest in taxable municipal bonds of investment grade quality.
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). The Trust operates as an investment company, as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2013-08, and accordingly follows the investment company accounting and reporting guidance of Accounting Standards Codification (“ASC”) Topic 946 Financial Services – Investment Companies.
| A. | Security Valuation |
Securities held by the Intermediate Government Bond Series are valued using market quotations as provided by an independent pricing service. Securities held by the nine municipal bond funds are valued as determined in good faith in accordance with consistently applied procedures established by and under the general supervision of the Board. These procedures involve the use of matrix pricing models which take into consideration price quotations or appraisals for these securities, yield, stability, risk, quality, coupon rate, maturity, type of issue, trading characteristics, special circumstances of a security or trading market, and any other factors or market data considered relevant in determining the value. The procedures also include weekly verification of market quotations provided by two independent pricing services. A bond valuation that is not supported by a valuation source requires management to fair value the security in consultation with the Board’s Valuation Committee. The Board has adopted policies and procedures for the valuation of the Trust’s investments (the “Valuation Procedures”). Pursuant to the valuation Procedures, the Valuation Committee, consisting of all of the non-interested Trustees, has the responsibility for implementation of the Valuation Procedures including, under most circumstances, reviewing and ratifying the fair value determinations of the Trust’s securities or other assets. The Valuation Committee convenes as needed and reviews the valuation of all assets which have been fair valued for reasonableness. Shares of open-end mutual funds in which the Funds invest, if any, are valued at their respective net asset values as reported by the underlying funds.
The Funds have adopted the provisions of FASB ASC 820, “Fair Value Measurements and Disclosures.” ASC 820 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available
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Table of Contents
DUPREE MUTUAL FUNDS | UNAUDITED |
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
| 1. | Organization and Significant Accounting Policies, continued |
unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under ASC 820 are as follows:
| Level 1: | Unadjusted quoted prices in active markets for identical securities. | |
| Level 2: | Prices determined using other significant observable inputs. Observable inputs, either directly or indirectly, are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. | |
| Level 3: | Price determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, where there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Funds’ own assumptions about the factors market participants would use in pricing a security, and would be based on the best information available. |
The aggregate value by input level, as of December 31, 2020, for the Funds’ investments is included at the end of the Funds’ Schedules of Portfolio Investments.
| B. | Investment Transactions |
Security transactions are accounted for on a trade date basis. Realized gains and losses on securities sold are determined on an identified cost basis.
| C. | Investment Income |
Interest income, which includes the amortization of premiums and the accretion of discounts, is recorded on an accrual basis. Discounts or premiums on debt securities purchased are accreted or amortized to interest income over the lives of the respective securities using the effective interest method.
| D. | When-Issued and Extended Settlement Securities |
The Funds may purchase securities with delivery or payment to occur at a later date. At the time the Funds enter into a commitment to purchase a security, the transaction is recorded and the value of the security is reflected in the net asset value. The value of the security may vary with market fluctuations. No interest accrues to the Funds until the security is delivered and payment takes place. At the time the Funds enter this type of transaction, they are required to segregate cash or other liquid assets equal to the value of the securities purchased. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
| E. | Federal Income Taxes |
It is each Fund’s policy to qualify as a regulated investment company by complying with the requirements of the Internal Revenue Code (the “code”) applicable to regulated investment companies, including the distribution of all or substantially all taxable and tax-exempt income to their shareholders. The Funds have met the requirements of the code applicable to regulated investment companies for the six months ended December 31, 2020. Therefore, no federal income tax provision is required. Management has analyzed the Funds’ tax positions for all open tax years and all major jurisdictions, and has concluded that as of December 31, 2020, no provision for income taxes is required in the financial statements. Therefore, no additional tax expense, including any interest and penalties, was recorded in the current year and no adjustments were made to prior periods. To the extent the Funds recognize interest and penalties, they are included in interest expense and other expenses, respectively, in the Statements of Operations. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last three tax year ends and the interim tax period since then).
| F. | Distributions |
Substantially all of the net investment income of the Funds is declared as a dividend to shareholders of record as of the close of business each day. Any net realized long term capital gains are distributed annually to shareholders. Distributions are payable in cash or in additional shares at the net asset value on the payable date. Distributions are determined in accordance with income tax regulations, which may differ from U.S. GAAP.
51
Table of Contents
DUPREE MUTUAL FUNDS | UNAUDITED |
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
| 1. | Organization and Significant Accounting Policies, continued |
Distributions are payable:
| Monthly for: | Kentucky Tax-Free Short-to-Medium Series North Carolina Tax-Free Short-to-Medium Series Tennessee Tax-Free Short-to-Medium Series Intermediate Government Bond Series Taxable Municipal Bond Series | |
| Quarterly for: | Alabama Tax-Free Income Series Kentucky Tax-Free Income Series Mississippi Tax-Free Income Series North Carolina Tax-Free Income Series Tennessee Tax-Free Income Series | |
| G. | Estimates |
The preparation of these financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures. Actual amounts could differ from those estimates.
| H. | Subsequent Events |
Subsequent events occurring after December 31, 2020 have been evaluated by the Adviser for potential impact to this report through the date the financial statements were issued. The Adviser has determined that there were no material subsequent events that require recognition or disclosure in the Funds’ financial statements.
| 2. | Investment Advisory Fee and Other Transactions with Affiliates |
Subject to the direction of the Trustees, the Adviser is responsible for the management of the Funds’ portfolios. Under the terms of the Investment Advisory Agreements, the Funds (except the Intermediate Government Bond Series) have agreed to pay to the Adviser as compensation for all services rendered, facilities furnished and expenses paid or assumed by it under the Agreements, a fee at the annual rate of .50 of 1% of the first $100,000,000 average daily net assets of each Fund determined separately; .45 of 1% of the average daily net assets between $100,000,001 and $150,000,000 of each Fund determined separately; .40 of 1% of the average daily net assets between $150,000,001 and $500,000,000 of each Fund determined separately; .35 of 1% of the average daily net assets between $500,000,001 and $750,000,000; and .30 of 1% of the average daily net assets between $750,000,001 and $1,000,000,000; and .25 of 1% of the average daily net assets in excess of $1,000,000,000. The Intermediate Government Bond Series has agreed to pay the Adviser, as compensation for all services rendered, facilities furnished and expenses paid or assumed by it under the Agreement, a fee at the annual rate of .20 of 1% of average daily net assets.
The Adviser may voluntarily waive investment advisory fees payable to it under the Investment Advisory Agreement with each Fund, and assume and pay other operating expenses. The Adviser will not seek to recoup any waived fees or other operating expenses it has assumed.
For the six months ended December 31, 2020, fees voluntarily waived by the Adviser were as follows:
| Fees waived by Adviser | ||||
Alabama Tax-Free Income Series | $ | 14,342 | ||
Kentucky Tax-Free Short-to-Medium Series | 20,216 | |||
Mississippi Tax-Free Income Series | 15,180 | |||
North Carolina Tax-Free Income Series | 6 | |||
North Carolina Tax-Free Short-to-Medium Series | 17,498 | |||
Tennessee Tax-Free Income Series | 5,494 | |||
Tennessee Tax-Free Short-to-Medium Series | 13,918 | |||
Intermediate Government Bond Series | 92 | |||
Taxable Municipal Bond Series | 19,843 | |||
52
Table of Contents
DUPREE MUTUAL FUNDS | UNAUDITED |
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
| 2. | Investment Advisory Fee and Other Transactions with Affiliates, continued |
In addition, each Fund has entered into a Shareholder Service Agreement with Dupree & Company, Inc., the Funds’ transfer agent. The agreement provides for a fee computed on the average daily net asset value at the annual rate of 0.15 of 1% on the first $20,000,000 of average net assets and 0.12 of 1% of all amounts in excess of $20,000,000 of average net assets determined separately for each Fund.
For the six months ended December 31, 2020, each member of the Board of Trustees received a fee of $28,000 per year plus $2,000 for each Audit Committee meeting attended. In addition, all Independent Trustees are reimbursed by the Funds for all reasonable out-of-pocket expenses incurred by them in performing their duties. The fees are allocated on an average monthly net asset basis for each Fund. The Trustees fees for each Fund are disclosed on the Funds’ Statements of Operations.
| 3. | Purchases and Sales of Securities |
During the six months ended December 31, 2020, the cost of purchases and the proceeds from sales/calls and maturities of securities (excluding short-term securities and U.S. government obligations, except for the Intermediate Government Bond Series which are all U.S. government obligations) for each Fund were as follows:
| Purchases | Sales/Calls | |||||||
Alabama Tax-Free Income Series | $ | 2,215,167 | $ | 2,508,785 | ||||
Kentucky Tax-Free Income Series | 64,867,912 | 30,697,271 | ||||||
Kentucky Tax-Free Short-to-Medium Series | 1,518,853 | 332,956 | ||||||
Mississippi Tax-Free Income Series | 1,140,089 | 806,557 | ||||||
North Carolina Tax-Free Income Series | 8,441,759 | 2,210,000 | ||||||
North Carolina Tax-Free Short-to-Medium Series | 555,439 | 150,000 | ||||||
Tennessee Tax-Free Income Series | 587,405 | 3,456,481 | ||||||
Tennessee Tax-Free Short-to-Medium Series | -0- | 334,186 | ||||||
Intermediate Government Bond Series | 499,500 | -0- | ||||||
Taxable Municipal Bond Series | 4,894,732 | 3,139,627 | ||||||
| 4. | Capital Shares |
As of December 31, 2020 and June 30, 2020, there were an unlimited number of shares of beneficial interest authorized. Transactions in capital shares were as follows:
| ALABAMA TAX-FREE INCOME SERIES | Six months Ended December 31, 2020 | Year Ended June 30, 2020 | ||||||||||||||
| SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
Shares sold | 135,661 | $ | 1,740,090 | 246,080 | $ | 3,104,504 | ||||||||||
Shares reinvested | 9,891 | 126,904 | 22,101 | 278,564 | ||||||||||||
Shares redeemed | (211,935 | ) | (2,721,789 | ) | (231,029 | ) | (2,881,885 | ) | ||||||||
Net increase/(decrease) | (66,383 | ) | $ | (854,795 | ) | 37,152 | $ | 501,183 | ||||||||
| KENTUCKY TAX-FREE INCOME SERIES | Six months Ended December 31, 2020 | Year Ended June 30, 2020 | ||||||||||||||
| SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
Shares sold | 5,970,614 | $ | 47,584,003 | 13,023,200 | $ | 102,778,654 | ||||||||||
Shares reinvested | 893,821 | 7,133,468 | 1,823,759 | 14,358,125 | ||||||||||||
Shares redeemed | (6,293,944 | ) | (50,180,384 | ) | (14,690,719 | ) | (115,272,687 | ) | ||||||||
Net increase | 570,491 | $ | 4,537,087 | 156,240 | $ | 1,864,092 | ||||||||||
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Table of Contents
DUPREE MUTUAL FUNDS | UNAUDITED |
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
| 4. | Capital Shares, continued |
KENTUCKY TAX-FREE SHORT-TO-MEDIUM SERIES | Six months Ended December 31, 2020 | Year Ended June 30, 2020 | ||||||||||||||
| SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
Shares sold | 476,710 | $ | 2,601,039 | 1,286,611 | $ | 6,918,260 | ||||||||||
Shares reinvested | 38,401 | 209,352 | 89,454 | 482,014 | ||||||||||||
Shares redeemed | (471,478 | ) | (2,568,532 | ) | (2,964,910 | ) | (15,976,039 | ) | ||||||||
Net increase/(decrease) | 43,633 | $ | 241,859 | (1,588,845 | ) | $ | (8,575,765 | ) | ||||||||
| MISSISSIPPI TAX-FREE INCOME SERIES | Six months Ended December 31, 2020 | Year Ended June 30, 2020 | ||||||||||||||
| SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
Shares sold | 101,681 | $ | 1,258,374 | 106,403 | $ | 1,308,777 | ||||||||||
Shares reinvested | 4,483 | 55,529 | 8,169 | 100,197 | ||||||||||||
Shares redeemed | (102,489 | ) | (1,270,660 | ) | (143,944 | ) | (1,741,993 | ) | ||||||||
Net increase/(decrease) | 3,675 | $ | 43,243 | (29,372 | ) | $ | (333,019 | ) | ||||||||
NORTH CAROLINA TAX-FREE INCOME SERIES | Six months Ended December 31, 2020 | Year Ended June 30, 2020 | ||||||||||||||
| SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
Shares sold | 1,257,319 | $ | 15,123,565 | 2,544,879 | $ | 30,018,744 | ||||||||||
Shares reinvested | 85,000 | 1,021,287 | 175,039 | 2,066,064 | ||||||||||||
Shares redeemed | (1,203,242 | ) | (14,472,067 | ) | (1,697,222 | ) | (19,982,635 | ) | ||||||||
Net increase | 139,077 | $ | 1,672,785 | 1,022,696 | $ | 12,102,173 | ||||||||||
NORTH CAROLINA TAX-FREE SHORT-TO-MEDIUM SERIES | Six months Ended December 31, 2020 | Year Ended June 30, 2020 | ||||||||||||||
| SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
Shares sold | 47,300 | $ | 532,210 | 279,136 | $ | 3,113,820 | ||||||||||
Shares reinvested | 7,000 | 78,775 | 18,316 | 203,660 | ||||||||||||
Shares redeemed | (27,795 | ) | (312,505 | ) | (908,354 | ) | (10,075,145 | ) | ||||||||
Net increase/(decrease) | 26,505 | $ | 298,480 | (610,902 | ) | $ | (6,757,665 | ) | ||||||||
| TENNESSEE TAX-FREE INCOME SERIES | Six months Ended December 31, 2020 | Year Ended June 30, 2020 | ||||||||||||||
| SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
Shares sold | 261,399 | $ | 3,064,130 | 481,990 | $ | 5,602,354 | ||||||||||
Shares reinvested | 59,979 | 702,973 | 130,095 | 1,507,977 | ||||||||||||
Shares redeemed | (624,620 | ) | (7,325,156 | ) | (1,455,917 | ) | (16,861,850 | ) | ||||||||
Net decrease | (303,242 | ) | $ | (3,558,053 | ) | (843,832 | ) | $ | (9,751,519 | ) | ||||||
54
Table of Contents
DUPREE MUTUAL FUNDS | UNAUDITED |
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
| 4. | Capital Shares, continued |
TENNESSEE TAX-FREE SHORT-TO-MEDIUM SERIES | Six months Ended December 31, 2020 | Year Ended June 30, 2020 | ||||||||||||||
| SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
Shares sold | 12,714 | $ | 140,528 | 28,717 | $ | 313,936 | ||||||||||
Shares reinvested | 3,437 | 37,966 | 7,600 | 82,906 | ||||||||||||
Shares redeemed | (48,259 | ) | (534,099 | ) | (106,624 | ) | (1,160,346 | ) | ||||||||
Net decrease | (32,108 | ) | $ | (355,605 | ) | (70,307 | ) | $ | (763,504 | ) | ||||||
| INTERMEDIATE GOVERNMENT BOND SERIES | Six months Ended December 31, 2020 | Year Ended June 30, 2020 | ||||||||||||||
| SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
Shares sold | 87,352 | $ | 902,535 | 106,461 | $ | 1,087,209 | ||||||||||
Shares reinvested | 14,741 | 151,993 | 28,982 | 296,444 | ||||||||||||
Shares redeemed | (62,527 | ) | (646,178 | ) | (118,712 | ) | (1,211,567 | ) | ||||||||
Net increase | 39,566 | $ | 408,350 | 16,731 | $ | 172,086 | ||||||||||
| TAXABLE MUNICIPAL BOND SERIES | Six months Ended December 31, 2020 | Year Ended June 30, 2020 | ||||||||||||||
| SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||
Shares sold | 164,862 | $ | 1,721,093 | 149,035 | $ | 1,543,704 | ||||||||||
Shares reinvested | 24,153 | 251,598 | 41,121 | 427,824 | ||||||||||||
Shares redeemed | (77,208 | ) | (803,617 | ) | (47,990 | ) | (500,600 | ) | ||||||||
Net increase | 111,807 | $ | 1,169,074 | 142,166 | $ | 1,470,928 | ||||||||||
| 5. | Principal Risks |
| Concentration | of Credit Risk |
The Alabama Tax-Free Income Series, Kentucky Tax-Free Income Series, Kentucky Tax-Free Short-to-Medium Series, Mississippi Tax-Free Income Series, North Carolina Tax-Free Income Series, North Carolina Tax-Free Short-to-Medium Series, Tennessee Tax-Free Income Series, and Tennessee Tax-Free Short-to-Medium Series each invest solely in debt obligations issued by the states of Alabama, Kentucky, Mississippi, North Carolina, and Tennessee, respectively, and their respective political subdivisions, agencies and public authorities to obtain funds for various public purposes. Each of these state-specific Funds is more susceptible to economic and political factors adversely affecting issuers of their states’ respective municipal securities than a fund that is not concentrated in these issuers to the same extent.
| State-Specific | Concentration Risk |
Investment in a state-specific Fund may involve greater risk than an investment in a fund with a portfolio comprised of municipal securities issued by more than one state. This additional risk is due to the possibility of an economic, regulatory or political development unique to a single state or region that may adversely affect the performance of the Fund. Since the state-specific Fund invest in state-specific municipal securities, economic, regulatory and political events in such states are likely to directly affect the state-specific Fund’s investments and its performance.
Many municipal securities are issued to finance similar projects (such as those relating to education, health care, housing, transportation, and utilities). As a result, conditions in those sectors may affect the overall municipal securities market. In addition, changes in the financial condition of an individual municipal issuer can affect the overall municipal market. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the supporting taxation or the inability to collect revenues for the specific project or specific assets. Municipal
55
Table of Contents
DUPREE MUTUAL FUNDS | UNAUDITED |
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
| 5. | Principal Risks, continued |
securities may be less liquid than taxable bonds and there may be less publicly available information on the financial condition of municipal securities issuers than for issuers of other securities, and the investment performance of a Fund investing in municipal securities may therefore be more dependent on the analytical abilities of the Adviser than if a Fund held other types of investments such as stocks or taxable bonds. The secondary market for municipal securities also tends to be less well developed or liquid than many other securities markets, a by-product of lower capital commitments to the asset class by the dealer community, which may adversely affect a Fund’s ability to sell municipal securities it holds at attractive prices or value municipal securities. A Fund may also invest in municipal lease obligations which differ from other municipal securities because the lease payments are subject to annual legislative appropriation. If the money is not appropriated, the lease can be cancelled without penalty and investors who own the lease obligations may not be paid.
| Market | Risk |
The market values of municipal securities held by a Fund may go up or down, sometimes rapidly or unpredictably, as a result of market activity, interest rate fluctuations or as a result of supply and demand factors. Accordingly, the net asset value (NAV) of our shares will fluctuate. When there are more buyers than sellers, prices tend to rise. Conversely, when there are more sellers than buyers, prices tend to fall. Municipal securities may be issued on a when-issued or delayed basis, where payment and delivery take place at a future date. Since the market price of the security may fluctuate during the time before payment and delivery, the Fund assumes the risk that the value of the security at delivery may be more or less than the purchase price.
| Taxability | Risk |
The Funds’ investments in municipal securities rely on the opinion of the issuer’s bond counsel that the interest paid on those securities will not be subject to federal income tax. Tax opinions are generally provided at the time the municipal security is initially issued. However, after a Fund buys a security, the Internal Revenue Service may determine that the issuer has not complied with applicable tax requirements and a bond issued as tax-exempt should in fact be taxable. This may result in a significant decline in the value of the security.
Non-Diversification Risk (Kentucky Tax-Free Short-to-Medium Series, Mississippi Tax-Free Income Series, Tennessee Tax-Free Short-to-Medium Series and Taxable Municipal Bond Series, only)
Since these Funds are non-diversified, they may invest a greater percentage of its assets in a particular issuer or group of issuers than a diversified fund would. This increased investment in fewer issuers may result in increased volatility in the Fund’s performance and share price.
| Risks | Associated with Health Crises |
An outbreak of respiratory disease caused by a novel coronavirus (COVID-19) was first detected in China in December 2019 and subsequently spread internationally. COVID-19 has resulted in closing borders, enhanced health screenings, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of COVID-19 may be short term or may last for an extended period of time and result in a substantial economic downturn. The impact of this outbreak, and other epidemics and pandemics that may arise in the future, could negatively affect the worldwide economy, as well as the economies of individual countries, individual companies and market in general in significant and unforeseen ways. Any such impact could adversely affect a Fund’s performance, the performance of the securities in which a Fund invests and may lead to losses on an investment in a Fund.
More detailed information about each Fund, including applicable risks, can be found in the Trust’s prospectus dated November 1, 2020.
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NOTES TO FINANCIAL STATEMENTS
December 31, 2020
| 6. | Federal Income Taxes |
At June 30, 2020, the Funds’ capital loss carry-forwards available to offset future capital gains, as follows:
| Short-term | Long-term | Total | ||||||||||
Alabama Tax Free Income Series | $ | 35,043 | $ | 36,362 | $ | 71,405 | ||||||
Kentucky Tax-Free Short-to-Medium Series | 114,186 | 114,186 | ||||||||||
North Carolina Tax-Free Income Series | 1,216,937 | 365,211 | 1,582,148 | |||||||||
Tennessee Tax-Free Income Series | 288,388 | 17,178 | 305,566 | |||||||||
Tennessee Tax-Free Short-to-Medium Series | — | 269,581 | 269,581 | |||||||||
Intermediate Government Bond Series | 120,261 | 20,861 | 141,122 | |||||||||
During the year ended June 30, 2020, the following Funds utilized capital loss carry-forwards as follows:
Alabama Tax Free Income Series | $ | 18,246 | ||
Kentucky Tax-Free Income Series | 205,343 | |||
Kentucky Tax-Free Short-to-Medium Series | 146,952 | |||
North Carolina Tax-Free Income Series | 172,080 | |||
North Carolina Tax-Free Short-to-Medium Series | 149,538 | |||
Tennessee Tax-Free Income Series | 122,701 | |||
Tennessee Tax-Free Short-to-Medium Series | 1,796 | |||
Intermediate Government Bond Series | 11,595 | |||
Taxable Municipal Bond Series | 36,663 |
The distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are caused primarily due to the recognition of certain components of realized capital gains for federal income tax purposes. Where such differences are permanent in nature, they are reclassified in the components of net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations or net asset values per share of the Funds. For the fiscal year ended June 30, 2020, the Funds did not have any reclassification of net assets.
The tax character of distributions paid for the six months ended December 31, 2020 and the year ended June 30, 2020 were as follows:
| Six months ended December 31, 2020 | Year ended June 30, 2020 | |||||||||||||||||||||||
| Tax Exempt Income | Ordinary Income | Long-Term Capital Gain | Tax Exempt Income | Ordinary Income | Long-Term Capital Gain | |||||||||||||||||||
Alabama Tax-Free Income Series | $ | 328,138 | $ | — | $ | — | $ | 680,102 | $ | — | $ | — | ||||||||||||
Kentucky Tax-Free Income Series | 12,441,170 | — | 505,458 | 25,818,863 | — | — | ||||||||||||||||||
Kentucky Tax-Free Short-to-Medium Series | 399,913 | — | — | 865,554 | — | — | ||||||||||||||||||
Mississippi Tax-Free Income Series | 130,279 | — | 21,270 | 275,568 | — | 14,209 | ||||||||||||||||||
North Carolina Tax-Free Income Series | 1,718,806 | — | — | 3,527,438 | — | — | ||||||||||||||||||
North Carolina Tax-Free Short-to-Medium Series | 104,826 | 1,510 | — | 274,467 | — | — | ||||||||||||||||||
Tennessee Tax-Free Income Series | 1,096,167 | — | 23,197 | 2,425,813 | — | — | ||||||||||||||||||
Tennessee Tax-Free Short-to-Medium Series | 50,330 | — | — | 111,556 | — | — | ||||||||||||||||||
Intermediate Government Bond Series | — | 178,538 | — | — | 360,002 | — | ||||||||||||||||||
Taxable Municipal Bond Series | — | 268,192 | 82,346 | — | 629,639 | — | ||||||||||||||||||
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DUPREE MUTUAL FUNDS | UNAUDITED |
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
| 6. | Federal Income Taxes, continued |
At June 30, 2020, the Funds’ components of distributable earnings (accumulated losses) on a tax basis were as follows:
| Undistributed Ordinary Income | Undistributed Tax Exempt Income | Undistributed Net Long-term Capital Gain | Net Unrealized Appreciation/ Depreciation on Investments | |||||||||||||
Alabama Tax-Free Income | $ | — | $ | 99,242 | $ | — | $ | 1,899,070 | ||||||||
Kentucky Tax-Free Income | — | 2,724,275 | 155,511 | 49,215,510 | ||||||||||||
Kentucky Tax-Free Short-to-Medium | — | 29,896 | — | 1,942,250 | ||||||||||||
Mississippi Tax-Free Income | — | 41,175 | 21,206 | 702,078 | ||||||||||||
North Carolina Tax-Free Income | — | 353,793 | — | 9,485,809 | ||||||||||||
North Carolina Tax-Free Short-to-Medium | 1,510 | 4,351 | — | 735,649 | ||||||||||||
Tennessee Tax-Free Income | — | 210,181 | — | 5,786,226 | ||||||||||||
Tennessee Tax-Free Short-to-Medium | — | 2,129 | — | 358,145 | ||||||||||||
Intermediate Government Bond | 4,407 | — | — | 994,013 | ||||||||||||
Taxable Municipal Bond Series | 13,498 | — | 82,346 | 961,096 | ||||||||||||
| Accumulated Capital and Other Losses | Other Temporary Differences | Total Earnings/ | ||||||||||
Alabama Tax-Free Income | $ | (71,404 | ) | $ | (99,242 | ) | $ | 1,827,666 | ||||
Kentucky Tax-Free Income | -0- | (2,724,275 | ) | 49,371,021 | ||||||||
Kentucky Tax-Free Short-to-Medium | (114,186 | ) | (29,896 | ) | 1,828,064 | |||||||
Mississippi Tax-Free Income | -0- | (41,110 | ) | 723,349 | ||||||||
North Carolina Tax-Free Income | (1,582,148 | ) | (353,793 | ) | 7,903,661 | |||||||
North Carolina Tax-Free Short-to-Medium | -0- | (4,351 | ) | 737,159 | ||||||||
Tennessee Tax-Free Income | (305,565 | ) | (210,181 | ) | 5,480,661 | |||||||
Tennessee Tax-Free Short-to-Medium | (269,581 | ) | (2,129 | ) | 88,564 | |||||||
Intermediate Government Bond | (141,122 | ) | (4,407 | ) | 852,891 | |||||||
Taxable Municipal Bond Series | -0- | (13,498 | ) | 1,043,442 | ||||||||
| 7. | Line of Credit Agreement and Custodian Agreement |
Under the terms of an agreement with the Funds’ custodian, principal amounts up to 5% of a Fund’s net assets are available on a committed line of credit. The principal amounts borrowed are due on demand. The agreement expires on August 31, 2021, but may be renewed annually. Interest is payable based on the published prime rate of the bank. Securities with a minimum value of three times the loan proceeds will be assigned as collateral until the balance of the note and unpaid interest is paid in full and terminated.
At December 31, 2020, the Funds had an aggregate unused line of credit amount of $25,000,000. During the six months ended December 31, 2020, the average interest rate on borrowings was 3.25% and the daily weighted average borrowings for each Fund with borrowings were as follows:
| Weighted average borrowings | ||||
Alabama Tax-Free Income Series | $ | 4,158 | ||
Kentucky Tax Free Income Series | 5,880 | |||
Kentucky Tax-Free Short-to-Medium Series | 103 | |||
Mississippi Tax-Free Income Series | 2,859 | |||
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DUPREE MUTUAL FUNDS | UNAUDITED |
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
| 7. | Line of Credit Agreement and Custodian Agreement, continued |
| Weighted average borrowings | ||||
North Carolina Tax-Free Income Series | $ | 924 | ||
North Carolina Tax-Free Short-to-Medium Series | -0- | |||
Tennessee Tax-Free Income Series | 17,571 | |||
Tennessee Short-to-Medium Tax-Free Series | 3,929 | |||
Intermediate Government Bond Series | -0- | |||
Taxable Municipal Bond Series | 353 | |||
The Funds have a contractual agreement with the custodian whereby the Funds compensate the custodian for custodial services incurred exceeding the credits realized as a result of uninvested cash balances. Credits realized as a result of uninvested cash balances are used to reduce each Fund’s expenses. During the year, these credits reduced each Fund’s expenses by the amount shown on the Statement of Operations as “Custodian expense reduction.”
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DUPREE MUTUAL FUNDS | UNAUDITED |
OTHER UNAUDITED INFORMATION
December 31, 2020
Trustee and officer information
The following table sets forth information as to the Trustees and officers:
| Name, Address and Age | Position(s) held with Funds | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | Other Directorships Held by Trustee or Officer During Past Five Years | |||||
James C. Baughman, Jr. 125 South Mill Street Lexington, KY 40507 (1962) | Trustee Chair of Nominating Committee | Indefinite Term/ Since October 2007 | President, CJN Advisors, LLC (2013 – present; business consulting); President, Blue Horse Entries, LLC (2014 – present; online business support services for equestrian events); President, H&S Parent, Inc. (2017 – present; health and wellness) | 10 | Advisory Board, Community Trust Bank, | |||||
Ann Rosenstein Giles 125 South Mill Street Lexington, KY 40507 (1952) | Trustee Chair of Valuation Committee | Indefinite Term/ Since October 2011 | AJ Marketing Partners (self-employed strategic marketing consultant; 2012 – present) | 10 | N/A | |||||
Marc A. Mathews, 125 South Mill Street Lexington, KY 40507 (1958) | Chairman, Trustee Chair of Audit Committee | Indefinite Term/ Since October 2011 | Vice President for Finance and Business, Transylvania University (2009 – present) | 10 | Director, Bank of the Bluegrass | |||||
Knox van Nagell Pfister 125 South Mill Street Lexington, KY 40507 (1978) | Trustee | Indefinite Term/ Since August 2019 | Managing Member of Knox Consulting LLC (October 2020 – present, project management, advocacy, and organization-optimization services). General Counsel, Mt. Brilliant Farm and Boone Creek LLC (2017 – 2020); Sr. Director of Philanthropy UK Health Care (2016 – 2017); Executive Director, Fayette Alliance (2006 – 2016) | 10 | Sayre School Board, Fayette Alliance Board, Iroquois Hunt Club Board | |||||
| Interested Trustees and Officers of the Trust | ||||||||||
Allen E. Grimes, III 125 South Mill Street Lexington, KY 40507 (1962) | President Trustee | Annual Term/ President, May 2018 to present; Executive Vice President, October 2005 to May 2018 Trustee since 2019 | President, Dupree & Company, Inc. | 10 | N/A | |||||
Huston B. Combs 125 South Mill Street Lexington, KY 40507 (1976) | Vice President | Annual Term/ May 2018 to present | Attorney/Registered Representative Dupree & Company, Inc. (2017 – present); Gess Mattingly & Atchison, P.S.C. (law firm) (2003 – 2017) | N/A | N/A | |||||
Michelle Dragoo 125 South Mill Street Lexington, KY 40507 (1961) | Secretary Treasurer Vice President | Annual Term/ October 1999 to present | Secretary, Treasurer, Vice President of Dupree & Company, Inc. | N/A | N/A | |||||
Vincent Harrison 125 South Mill Street Lexington, KY 40507 (1971) | Assistant Secretary & Assistant Treasurer | Annual Term/ October 2015 to present | Vice President of Dupree & Company, Inc. | N/A | N/A |
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DUPREE MUTUAL FUNDS | UNAUDITED |
OTHER UNAUDITED INFORMATION
December 31, 2020
Trustee and officer information, continued
| Name, Address and Age | Position(s) held with Funds | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee or Officer | Other Directorships Held by Trustee or Officer During Past Five Years | |||||
Martin Dean Ultimus Fund Solutions, LLC 225 Pictoria Drive Suite 450 Cincinnati, OH 45246 (1963) | Compliance Officer | Annual Term/ August 2017 to present | Senior Vice President, Head of Fund Compliance, Ultimus Fund Solutions, LLC (January 2016 – present) | N/A | N/A |
Allen E. Grimes, III is considered to be an “interested person” as defined in section 2(a)(19) of the Investment Company Act of 1940 by virtue of his affiliation with the Adviser.
As of December 31, 2020, none of the Independent Trustees or members of their immediate family held any beneficial interest in the Trust’s Investment Adviser. Further, the Trust does not have an underwriter.
The Statement of Additional Information (“SAI”) includes additional information about Trustees and officers and is available upon request without charge. Please call (800) 866-0614 to request the SAI.
Proxy Voting Information
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information regarding how the Funds voted those proxies during the most recent twelve months ended June 30, 2020, is available without charge upon request by calling (800) 866-0614, or on the Securities and Exchange Commission’s website at http://www.sec.gov. For the year ended June 30, 2020, the Funds exercised no proxy votes due to the fact that the debt instruments in which the Funds invest carry no voting rights.
Quarterly Portfolio Disclosure
The Trust files a complete listing of portfolio holdings for each Fund as of the end of the first and third quarters of each fiscal year on Form N-PORT. The information will be publicly available 60 days after the end of the period. The complete listing of each Fund’s portfolio holdings is available on the Commission’s website at http://www.sec.gov and will be made available to shareholders upon request by calling (800) 866-0614.
Liquidity Risk Management Program
The Trust has adopted and implemented a liquidity risk management program (the “Program”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended. The Trust’s Board of Trustees (the “Board”) designated certain officers of the Trust as the administrator of the Program (“Liquidity Administrator”). The Program is reasonably designed to assess and manage the liquidity risk of each Fund. Liquidity risk is the risk that each Fund could not meet requests to redeem shares issued by each Fund without significant dilution of remaining investors’ interests.
The Liquidity Administrator provided a written report to the Board for consideration at its October 2020 meeting that addressed the operation of the Program and provided an assessment of the adequacy and effectiveness of the Program during the period from the adoption of the Program on December 1, 2018 through September 30, 2020 (the “Covered Period”). The report concluded that during the Covered Period the Program operated effectively and was adequately and effectively implemented to assess and manage each Fund’s liquidity risk. The Liquidity Administrator also reported that there were no liquidity events that impacted each Fund or its ability to timely meet redemptions without dilution to existing shareholders during the Covered Period.
There can be no assurance that the Program will achieve its objectives in the future. Further information on liquidity risk, and other principal risks to which an investment in each Fund may be subject, can be found in each fund’s prospectus.
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OTHER UNAUDITED INFORMATION
December 31, 2020
Renewal of Advisory Agreements
In connection with a meeting held on October 26, 2020, the Board, including a majority of the Trustees who are not “interested persons,” as that term is defined in the Investment Company Act of 1940, as amended, discussed the renewal of the investment advisory agreements (the “Advisory Agreements”) between the Adviser and the Trust with respect to each of the Funds.
In considering the renewal of the Advisory Agreements, the Board received materials specifically relating to each Fund and its respective Advisory Agreement and carefully evaluated the following factors: (i) the investment performance of each Fund and the Adviser; (ii) the nature, extent and quality of the services provided by the Adviser to each Fund; (iii) the cost of the services to be provided and the profits to be realized by the Adviser and its affiliates from the relationship with the Funds; (iv) the extent to which economies of scale will be realized as a Fund grows; and (v) whether the fee levels reflect these economies of scale to the benefit of the Funds’ shareholders. In its evaluation the Board relied upon the advice of independent legal counsel and their own business judgment in determining the material factors to be considered in evaluating the Advisory Agreements and the weight to be given to each such factor. The Board’s conclusions were based on an evaluation of all the information provided and were not the result of any one factor. Moreover, each Trustee may have afforded different weight to the various factors in reaching conclusions with respect to the Advisory Agreements.
Nature, Quality and Extent of Services. The Board began its review by giving careful consideration to the nature, extent and quality of the services provided by the Adviser, including services provided by the Adviser as the Trust’s transfer agent, fund accountant and administrator. The Board reviewed the Adviser’s experience and the capabilities of its personnel, noting the consistency and longevity of the key employees employed by the Adviser. In light of the COVID-19 pandemic during 2020, the Board spent considerable time discussing the effectiveness of the Adviser’s business continuity and disaster recovery plans. The Board also discussed the Adviser’s compliance program, noting no concerns for 2020. After further discussion and consideration of the personnel involved in servicing each Fund, as well as the materials and services described above, the Board expressed satisfaction with the quality of the services received from the Adviser.
Performance. The Board reviewed the performance of each Fund over the last 10 years, or since inception in the case of the Taxable Municipal Bond Series, and compared the performance of each Fund to the respective indices, peer groups and Morningstar categories. The Board considered the Adviser’s methodology to select the peer groups, noting no material changes in the Adviser’s selection process or peer group composition relative to the previous year. The Board considered the Adviser’s explanation that it was difficult to construct peer groups for the short-to-medium Funds due to the lack of comparable funds in the respective states, and further noted that all short term, single-state municipal bond funds in the Morningstar category were used to construct the short-to-medium peer group. Consequently, the Trustees noted that the short-to-medium Funds tended to perform differently from the indexes and peer groups due to differences in credit quality and duration.
The Board reviewed performance for each Fund over the 1-Year, 5-Year and 10-Year and Since Inception (if applicable) periods, relative to the Funds’ respective benchmarks and peer groups. The Trustees noted that the each Fund generally outperformed their respective peer groups and Morningstar categories, but slightly underperformed the respective index primarily due to the fact that an index does not reflect fund fees or expenses. After further discussion, the Board concluded that Fund performance was satisfactory.
Fees and Expenses. The Board reviewed the range of advisory fees paid by the Funds to the Adviser and the total operating expenses of each Fund. The Board turned its attention to materials previously provided by the Adviser that compared the investment advisory fees assessed to the Funds with each Fund’s peer group and the appropriate Morningstar category averages. The Board noted that the advisory fees for the Kentucky Tax-Free Income Series and the Intermediate Government Bond Series were below the peer group and Morningstar category averages. The Board also noted that the advisory fee for the other Funds were equal to or higher than the peer group and Morningstar category averages but was within the range of fees charged by the peer groups and Morningstar category. The Board noted the Adviser’s explanation that the slightly higher fees were due to the smaller size of the Funds as compared to the size of the funds comprising the peer group and Morningstar categories. The Board observed that with respect to total operating expenses, the average expense ratios for all Funds, after voluntary fee waivers and reimbursements, were lower than the average expense ratios of the peer groups and Morningstar categories. The Board noted that the voluntary fee waivers and expenses reimbursements would remain in place for an additional one-year period, and further noted that the Adviser voluntarily waived fees and reimburses expenses to the extent necessary to keep total each Fund’s operating expenses below 0.70%. The Board reviewed the advisory fee breakpoints currently in place for all Funds. After considering the comparative data as described above, the Board concluded that the advisory fees and expense ratios were reasonable.
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DUPREE MUTUAL FUNDS | UNAUDITED |
OTHER UNAUDITED INFORMATION
December 31, 2020
Renewal of Advisory Agreements, continued
Economies of Scale and Profitability. In reviewing the costs of the services to be provided and the profits to be realized by the Adviser, the Board reviewed the Adviser’s unaudited income statement and balance sheet for the six-months ended June 30, 2020, a statement of income and expenses for the six-months ended June 30, 2020. The Board also considered the net profit margins realized on each Fund. The Board noted the Adviser’s explanation regarding the allocation of revenues and expenses, specifically noting that all marketing expenses are allocated to the Adviser. The Board discussed the methodology used by the Adviser in determining profitability and noted that it was the same methodology as used in previous years.
The Board considered the transfer agency fees earned by the Adviser for services provided to the Funds pursuant to the Transfer Agent and Dividend Disbursing Agent Services Agreement. The Board noted the Adviser’s explanation that the transfer agency fees earned by the Adviser reflected its service to the Funds’ direct shareholders and the coordination of any trading and settlement issues for all shareholders. The Board discussed the level and quality of services provided to shareholders by the Adviser, including changes in processes and locations due to the COVID-19 pandemic. The Board reviewed transfer agency, administration and fund accounting fees (“Administrative Fees”) paid by a peer group of funds and compared those fees to the fees paid by the Trust. The Board also discussed the net profit margins realized by the Adviser on each Fund under the Transfer Agent and Dividend Disbursing Agent Services Agreement. After further discussion, the Board concluded the level of profit realized by the Adviser in connection with its advisory services provided to the Funds was not excessive.
Conclusion. Having requested and received such information from the Adviser as the Board believed to be reasonably necessary to evaluate the terms of the Advisory Agreements, and as assisted by the advice of independent counsel, the Board determined that the Investment Advisory Agreement was fair and reasonable, that the Adviser’s fees were reasonable in light of the services provided to the Funds and the benefits received by the Adviser, and that renewal of the Investment Advisory Agreement would be in the best interests of the Funds.
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DUPREE MUTUAL FUNDS | UNAUDITED |
OTHER UNAUDITED INFORMATION
December 31, 2020
Schedule of Shareholder Expenses
As a shareholder of the Funds, you incur ongoing costs including investment advisory fees and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Six Months Ended December 31, 2020” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses which is not the Funds’ 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 Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
| Net Expense Ratio Annualized December 31, 2020 | Beginning Account Value July 1, 2020* | Ending Account Value December 31, 2020** | Expenses Paid During the Six Months Ended December 31, 2020 | |||||||||||||
Alabama Tax-Free Income Series | ||||||||||||||||
| Actual | .71 | % | $ | 1,000.00 | $ | 1,009.98 | $ | 3.58 | ||||||||
| Hypothetical | .71 | 1,000.00 | 1,025.21 | 3.60 | ||||||||||||
Kentucky Tax-Free Income Series | ||||||||||||||||
| Actual | .57 | 1,000.00 | 1,016.38 | 2.87 | ||||||||||||
| Hypothetical | .57 | 1,000.00 | 1,025.21 | 2.89 | ||||||||||||
Kentucky Tax-Free Short-to-Medium Series | ||||||||||||||||
| Actual | .71 | 1,000.00 | 1,007.96 | 3.57 | ||||||||||||
| Hypothetical | .71 | 1,000.00 | 1,025.21 | 3.60 | ||||||||||||
Mississippi Tax-Free Income Series | ||||||||||||||||
| Actual | .71 | 1,000.00 | 1,008.32 | 3.58 | ||||||||||||
| Hypothetical | .71 | 1,000.00 | 1,025.21 | 3.61 | ||||||||||||
North Carolina Tax-Free Income Series | ||||||||||||||||
| Actual | .69 | 1,000.00 | 1,011.70 | 3.50 | ||||||||||||
| Hypothetical | .69 | 1,000.00 | 1,025.21 | 3.52 | ||||||||||||
North Carolina Tax-Free Short-to-Medium Series | ||||||||||||||||
| Actual | .71 | 1,000.00 | 1,006.76 | 3.57 | ||||||||||||
| Hypothetical | .71 | 1,000.00 | 1,025.21 | 3.60 | ||||||||||||
Tennessee Tax-Free Income Series | ||||||||||||||||
| Actual | .71 | 1,000.00 | 1,010.03 | 3.58 | ||||||||||||
| Hypothetical | .71 | 1,000.00 | 1,025.21 | 3.61 | ||||||||||||
Tennessee Tax-Free Short-to-Medium Series | ||||||||||||||||
| Actual | .71 | 1,000.00 | 1,004.49 | 3.58 | ||||||||||||
| Hypothetical | .71 | 1,000.00 | 1,025.21 | 3.61 | ||||||||||||
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OTHER UNAUDITED INFORMATION
December 31, 2020
Schedule of Shareholder Expenses, continued
| Net Expense Ratio Annualized December 31, 2020 | Beginning Account Value July 1, 2020* | Ending Account Value December 31, 2020** | Expenses Paid During the Six Months Ended December 31, 2020 | |||||||||||||
Intermediate Government Bond Series | ||||||||||||||||
| Actual | .67 | % | $ | 1,000.00 | $ | 1,000.30 | $ | 3.38 | ||||||||
| Hypothetical | .67 | 1,000.00 | 1,025.21 | 3.42 | ||||||||||||
Taxable Municipal Bond Series | ||||||||||||||||
| Actual | .71 | 1,000.00 | 1,013.26 | 3.58 | ||||||||||||
| Hypothetical | .71 | 1,000.00 | 1,025.21 | 3.60 | ||||||||||||
| * | The example is based on an investment of $1,000 invested at the beginning of the period. |
| ** | Expenses are equal to the Funds’ annualized expense ratio, multiplied by the average account value over the period multiplied by [184/365] (to reflect one-half year period). |
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Item 2. Not applicable.
Item 3. Not applicable.
Item 4. Not applicable.
Item 5. Not applicable.
Item 6.
| (a) | Included as part of Item 1. |
| (b) | Not applicable. |
Item 7. Not applicable.
Item 8. Not applicable.
Item 9. Not applicable.
Item 10. There have been no changes to the procedures by which shareholders may recommend nominees to the board of trustees nominating committee.
Item 11. Controls and Procedures:
(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that such disclosure controls and procedures are reasonably designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Not applicable.
Item 13. Exhibits
(a)
| (1) | Not applicable. |
| (2) |
| (3) | Not applicable. |
| (4) | Not applicable. |
| (b) |
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Dupree Mutual Funds | ||
By: | /s/ Michelle M. Dragoo | |
Michelle M. Dragoo, Vice President, Secretary, Treasurer | ||
Date: February 26, 2021 | ||
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/ Allen E. Grimes, III | |
Allen E. Grimes, III, | ||
President | ||
Date: February 26, 2021 | ||
By: | /s/ Michelle M. Dragoo | |
Michelle M. Dragoo, Vice President, Secretary, Treasurer | ||
Date: February 26, 2021 | ||