U. S.
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, 2021
Date of reporting period: July 1, 2020 through June 30, 2021
Item 1. Report to Stockholders
June 30, 2021
ANNUAL REPORT
TO SHAREHOLDERS
ABOUT DUPREE MUTUAL FUNDS
In 1941, Dupree & Company, Inc. 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, Dupree & Company began what is now Dupree Mutual Funds 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 60 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.
TABLE OF CONTENTS
Management’s Discussion of Fund Performance: | Unaudited |
Twelve Months Ended June 30, 2021i
The investment objective of our tax-free municipal bond funds is to provide a high level of tax-free income derived from state-specific municipal bonds without incurring undue risk to principal. The investment objective of our government bond fund is to provide a high level of taxable income derived from securities of the U.S. government and its agencies without incurring undue risk to principal. Similarly, the investment objective of the taxable municipal bond fund is to provide a high level of taxable income derived from taxable municipal securities without incurring undue risk to principal.
This report covers the twelve month period from July 1, 2020 through June 30, 2021 (the “reporting period”). Economic activity fluctuated widely during the reporting period as the economy began recovering from the global pandemic. Real gross domestic product (GDP) expanded at a 33.8% annual rate during the third quarter of 2020. This rapid rate of growth reflected a continued bounce back in activity from depressed levels (the economy contracted at a 31.2% annual rate in the previous quarter). Economic growth then returned to more normal levels during the fourth quarter of 2020 and during the first quarter of 2021, with real GDP increasing at a 4.5% and 6.3% annual rate, respectively. Real GDP increased at an annual rate of 6.5% (advance estimate) during the second quarter of 2021.
The labor market has continued to show signs of improvement. The national unemployment rate has steadily declined as the economy has reopened and ended the reporting period at 5.9%. Joblessness has disproportionately impacted lower-wage workers in the service sector.
Key measures of inflation fluctuated significantly during the reporting period. The second and third quarters were characterized by weak demand and large price declines for some goods and services such as apparel, gasoline, air travel, and hotels. However, as the economy reopened and consumer spending has accelerated, inflation has picked up notably. The Federal Reserve’s (Fed) preferred inflation index, the personal consumption expenditure price index (PCE), increased 3.5% on a year-over-year basis through June, which was above the Fed’s 2.0% inflation target rate. The Fed continues to believe that the recent increase in prices will be transitory in nature.
In testimony before Congress, Fed Chair Powell noted that the recent increase in inflation likely reflects four main factors: (1) base effects (i.e., comparisons with the low prices during the Covid-19 shutdown); (2) a rebound in spending as the economy reopens; (3) pass through of past increases in oil prices to energy prices; and, (4) supply bottlenecks which have limited how quickly production in some sectors can respond in the near term.
The Federal Open Market Committee (FOMC) kept the Fed funds target rate unchanged at 0.00%-0.25% during the reporting period. The Fed has been purchasing $80 billion of Treasuries and $40 billion of mortgage-backed securities on a monthly basis since March 2020 to support the economy. The inflation debate has renewed attention on the issue of when the Federal Reserve will begin to start winding down its asset purchases. The Fed indicated after its most recent meeting which was held in mid-June, that it would continue its purchases at the same pace until “substantial further progress” is made on employment and inflation.
The vast majority of states and cities have emerged from Covid-19 with better than expected revenues. Against this backdrop and flush with federal stimulus dollars, governors and mayors across the country are pushing for large increases in spending. According to data compiled by the National Association of State Budget Officers, total general fund spending proposals rose approximately 5% to $963.6 billion for fiscal year 2022, with 39 states forecasting spending increases. At the federal level, Congress is currently debating passage of additional wide-ranging fiscal policy measures to shore up the economy and social welfare programs.
The municipal bond market posted solid returns during the reporting period. The Bloomberg Barclays Municipal Bond Index (BBMBI), which tracks investment grade municipal securities across all sectors and maturities, provided a total return of 4.17% for the twelve month period ended June 30, 2021. At the end of the reporting period, the BBMBI had a modified adjusted duration of 5.05 years, an average coupon of 4.49%, and an average credit quality of AA2/AA3.
During the reporting period, the riskier sectors of the municipal bond market that were impacted the most by the pandemic outperformed over the 12-month period as the economy reopened and fears of potential default abated. Bonds with longer maturities outperformed bonds with shorter maturities, and lower-rated bonds generally outperformed higher-rated bonds.
A number of factors led to the solid performance during the reporting period. Favorable supply-and-demand dynamics (i.e., very firm demand coupled with lower supply) acted as a tailwind for municipal bond prices. Investors’ appetite for tax-exempt bonds continued to increase and was fueled in part by the prospect of higher marginal tax rates. Bond prices have also been pushed
i
higher (yields lower) as credit quality concerns associated with dislocations caused by Covid-19 have eased dramatically as large amounts of federal stimulus funds have been deployed at the state and local levels.
The Kentucky Tax-Free Income Series provided shareholders a total return of 4.63% for the twelve month period ended June 30, 2021. The Kentucky Tax-Free Short-to-Medium Series provided shareholders with a total return of 1.86% for the same time period. The Kentucky Tax-Free Short-to-Medium Series had a substantially shorter average duration (2.68 years), causing it to underperform the BBMBI during the reporting period.
In 2020, Kentucky’s real GDP contracted 3.7% rate; the 2019-2020 national change was -3.5%. Kentucky’s 2020 current-dollar GDP was $210.2 billion and ranked 28th in the United States. The state’s annual average unemployment rate at the end of June was 4.4%. In 2020, Kentucky had a per capita personal income of $46,507 which ranked 47th in the United States.
Kentucky’s appropriation supported debt was rated A1 by Moody’s and A- by Standard & Poor’s as of June 30, 2021. Kentucky had net tax-supported debt per capita of $1,965 as of calendar year-end 2020, which is substantially above the state net tax-supported debt median of $1,039 (Source: Moody’s Investors Services, State Government U.S.: Medians — State Debt Rose 2.5% in 2020, Spurred By Pandemic-Linked Borrowing”, June 14, 2021).
The Tennessee Tax-Free Income Series provided shareholders with a total return of 2.84% for the twelve month period ended June 30, 2021. The Tennessee Tax-Free Short-to-Medium Series provided a total return of 0.81% for the same time period. The average durations of the Tennessee Tax-Free Income Series and the Tennessee Tax-Free Short-to-Medium Series were substantially shorter (3.68 and 3.06 years, respectively), causing both funds to underperform the BBMBI during the reporting period.
In 2020, Tennessee’s real GDP contracted 4.9%; the 2019-2020 national average was -3.5%. Tennessee’s 2020 current-dollar GDP was $364.5 billion and ranked 20th in the United States. The state’s annual average unemployment rate at the end of June was 4.9%. In 2020, the state had a per capita personal income of $50,547 which ranked 38th in the United States.
Tennessee’s general obligation (G.O.) bonds were rated Aaa by Moody’s and AAA by Standard & Poor’s as of June 30, 2021. Tennessee had net tax-supported debt per capita of $266 as of calendar year-end 2020, which is substantially below the state net tax-supported debt median of $1,039 (Source: Moody’s Investors Services, State Government U.S: “Medians—State Debt Rose 2.5% in 2020, Spurred By Pandemic-Linked Borrowing”, June 14, 2021).
The North Carolina Tax-Free Income Series provided shareholders with a total return of 3.12% for the twelve month period ended June 30, 2021. The North Carolina Tax-Free Short-to-Medium Series provided shareholders with a total return of 1.32% for the same time period. The average durations of the North Carolina Tax-Free Income Series and the North Carolina Tax-Free Short-to-Medium Series were shorter (4.98 and 3.51 years, respectively), causing both funds to underperform the BBMBI during the reporting period.
In 2020, North Carolina’s real GDP contracted 2.5%; the 2019-2020 national change was -3.5%. North Carolina’s 2020 current-dollar GDP was $586.1 billion and ranked 11th in the United States. The state’s average annual unemployment rate at the end of June was 4.6%. In 2020, North Carolina had a per capita personal income of $50,086 which ranked 39th in the United States.
North Carolina’s G.O. bonds were rated Aaa by Moody’s and AAA by Standard & Poor’s as of June 30, 2021. North Carolina had net tax-supported debt per capita of $581 as of calendar year-end 2020, which is below the state net tax-supported debt median of $1,039 (Source: Moody’s Investors Services, State Government — U.S.: “Medians — State Debt Rose 2.5% in 2020, Spurred By Pandemic-Linked Borrowing”, June 14, 2021).
The Alabama Tax-Free Income Series provided shareholders with a total return of 2.93% for the twelve month period ended June 30, 2021. The average duration of the Alabama Tax-Free Income Series was shorter (4.77 years), causing it to underperform the BBMBI during the reporting period.
In 2020, Alabama’s real GDP contracted 2.7%; the 2019-2020 national change was -3.5%. Alabama’s 2020 current-dollar GDP was $224.9 billion which ranked 27th in the United States. The state’s average annual unemployment rate at the end of June stood at 3.3%. In 2020, Alabama had a per capita personal income of $46,908 which ranked 46th in the United States.
Alabama’s G.O. bonds were rated Aa1 by Moody’s and AA by Standard & Poor’s as of June 30, 2021. Alabama had net tax-supported debt per capita of $1,045 as of calendar year-end 2020, which was slightly higher than the state net tax-supported debt median of $1,039 (Source: Moody’s Investors Services, State Government U.S.: “Medians-State Debt Rose 2.5% in 2020, Spurred By Pandemic-Linked Borrowing”, June 14, 2021).
ii
The Mississippi Tax-Free Income Series provided shareholders with a total return of 2.68% for the twelve month period ended June 30, 2021. The average duration of the Mississippi Tax-Free Income Series was shorter (4.31 years), causing it to underperform the BBMBI during the reporting period.
In 2020, Mississippi’s real GDP contracted by 2.8%; the 2019-2020 national change was -3.5%. Mississippi’s 2020 current-dollar GDP was $114.2 billion which ranked 36th in the United States. The state’s average annual unemployment rate at the end of June was 6.2%. In 2020, Mississippi had a per capita personal income of $41,745 which ranked 50th in the United States.
The state’s G.O. bonds were rated Aa2 by Moody’s and AA by Standard & Poor’s as of June 30, 2021. Mississippi has net tax-supported debt per capita of $1,908 as of calendar year-end 2020, which is higher than the state net tax-supported debt median of $1,039 (Source: Moody’s Investors Services, State Government U.S.: “Medians-State Debt Rose 2.5% in 2020, Spurred By Pandemic-Linked Borrowing”, June 14, 2021).
The Intermediate Government Bond Series provided shareholders with a total return of -0.49% for the twelve months ended June 30, 2021. The Bloomberg Barclays U.S. Intermediate Government Bond Index had a total return of -1.14% for the twelve month period ended June 30, 2021.
The Taxable Municipal Bond Series provided shareholders with a total return of 2.72% for the twelve month period ended June 30, 2021. The Bloomberg Barclays Municipal Bond Taxable Index (BBTMI) had a total return of 3.47% for the same time period. The Taxable Municipal Bond Series had a shorter average duration (8.77 years versus 9.69 years for the index) and held a substantially fewer lower-rated bonds, causing it to underperform the BBTMI during the reporting period.
Please note that index information is provided for reference only. No index can perfectly match the investments that make up a fund’s portfolio. In making investment decisions for our portfolios we do not attempt to track indices. The Bloomberg Barclays Municipal Bond index is national in scope and does not necessarily reflect the performance of state-specific municipal bond funds. Indices do not take into account any operating expenses or transaction costs. An investment cannot be made directly in an index.
i Data are from the Bureau of Economic Analysis, the U.S. Department of Labor Bureau of Labor Statistics, and various other sources management deems to be reliable. Some of the quoted data are preliminary in nature and may be subject to revision. Any opinions expressed herein are those of the funds’ portfolio management and are current as of June 30, 2021. They are not guarantees of performance or investment results and should not be taken as investment advice. Past performance is not a guarantee of future performance and you may lose money investing in the funds.
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The illustrations below provide each Fund’s sector allocation and
summarize key information about each Fund’s investments as of June 30, 2021. | Unaudited |
| | | | |
| |
Alabama Tax-Free Income Series | |
| CREDIT QUALITY* | | % of Fair Value of
Investments Held | |
Aaa/AAA | | | 2.05% | |
Aa/AA | | | 92.60% | |
A | | | 2.07% | |
Not Rated | | | 3.28% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| COMPOSITION | | | |
| | | % of Net Assets | |
Prerefunded | | | 26.49% | |
School Improvement | | | 21.78% | |
University Consolidated Education and Building Revenue | | | 13.90% | |
Public Facilities Revenue | | | 11.15% | |
Municipal Utility Revenue | | | 10.13% | |
Miscellaneous Public Improvement | | | 5.69% | |
Refunding | | | 5.15% | |
Hospital and Healthcare Revenue | | | 2.23% | |
Turnpikes/Toll Road/Highway Revenue | | | 2.19% | |
Other Assets Less Liabilities | | | 1.29% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | |
| |
Kentucky Tax-Free Income Series | |
| CREDIT QUALITY* | | % of Fair Value of
Investments Held | |
Aa/AA | | | 49.78% | |
A | | | 49.02% | |
Baa/BBB | | | 0.01% | |
Not Rated | | | 1.19% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| COMPOSITION | | | |
| | | % of Net Assets | |
Miscellaneous Public Improvement | | | 33.34% | |
School Improvement | | | 14.73% | |
University Consolidated Education and Building Revenue | | | 13.22% | |
Municipal Utility Revenue | | | 10.86% | |
Turnpikes/Toll Road/Highway Revenue | | | 6.62% | |
Public Facilities Revenue | | | 5.92% | |
Hospital and Healthcare Revenue | | | 5.42% | |
Prerefunded | | | 4.56% | |
Refunding | | | 2.84% | |
Airport Revenue | | | 0.74% | |
Ad Valorem Property | | | 0.14% | |
State and Local Mortgage/Housing Revenue | | | 0.01% | |
Other Assets Less Liabilities | | | 1.60% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| | | | |
| |
Kentucky Tax-Free Short-to-Medium Series | |
| CREDIT QUALITY* | | % of Fair Value of
Investments Held | |
Aaa/AAA | | | 0.41% | |
Aa/AA | | | 31.37% | |
A | | | 68.22% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| COMPOSITION | | | |
| | | % of Net Assets | |
Miscellaneous Public Improvement | | | 24.00% | |
School Improvement | | | 23.04% | |
Public Facilities Revenue | | | 16.45% | |
University Consolidated Education and Building Revenue | | | 10.10% | |
Turnpikes/Toll Road/Highway Revenue | | | 9.96% | |
Municipal Utility Revenue | | | 5.69% | |
Refunding | | | 4.22% | |
Prerefunded | | | 2.79% | |
Airport Revenue | | | 1.33% | |
Other Assets Less Liabilities | | | 2.42% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| | | | | |
| | | | |
| |
Mississippi Tax-Free Income Series | |
| CREDIT QUALITY* | | % of Fair Value of
Investments Held | |
Aa/AA | | | 89.13% | |
A | | | 9.65% | |
Not Rated | | | 1.22% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| COMPOSITION | | | |
| | | % of Net Assets | |
University Consolidated Education and Building Revenue | | | 28.42% | |
Prerefunded | | | 26.39% | |
Turnpikes/Toll Road/Highway Revenue | | | 7.77% | |
Municipal Utility Revenue | | | 6.92% | |
Ad Valorem Property | | | 6.40% | |
Miscellaneous Public Improvement | | | 5.85% | |
Public Facilities Revenue | | | 5.54% | |
Refunding | | | 4.60% | |
School Improvement | | | 3.94% | |
Hospital and Healthcare Revenue | | | 1.67% | |
Other Assets Less Liabilities | | | 2.50% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
iv
The illustrations below provide each Fund’s sector allocation and
summarize key information about each Fund’s investments as of June 30, 2021. | Unaudited |
| | | | |
| |
North Carolina Tax-Free Income Series | |
| CREDIT QUALITY* | | % of Fair Value of
Investments Held | |
Aaa/AAA | | | 5.40% | |
Aa/AA | | | 79.84% | |
A | | | 13.60% | |
Not Rated | | | 1.16% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| COMPOSITION | | | |
| | | % of Net Assets | |
School Improvement | | | 17.87% | |
University Consolidated Education and Building Revenue | | | 16.58% | |
Public Facilities Revenue | | | 16.20% | |
Municipal Utility Revenue | | | 13.28% | |
Prerefunded | | | 10.01% | |
Refunding | | | 7.81% | |
Hospital and Healthcare Revenue | | | 5.47% | |
Miscellaneous Public Improvement | | | 3.59% | |
Turnpikes/Toll Road/Highway Revenue | | | 3.50% | |
Airport Revenue | | | 3.18% | |
Lease Revenue | | | 1.04% | |
Escrowed to Maturity | | | 0.47% | |
Ad Valorem Property | | | 0.23% | |
Other Assets Less Liabilities | | | 0.77% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| | | | |
| |
North Carolina Tax-Free Short-to-Medium Series | |
| CREDIT QUALITY* | | % of Fair Value of
Investments Held | |
Aaa/AAA | | | 2.23% | |
Aa/AA | | | 63.62% | |
A | | | 34.15% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| | | | | |
| COMPOSITION | | | |
| | | % of Net Assets | |
University Consolidated Education and Building Revenue | | | 23.81% | |
Refunding | | | 17.36% | |
Municipal Utility Revenue | | | 16.53% | |
School Improvement | | | 11.02% | |
Public Facilities Revenue | | | 8.14% | |
Prerefunded | | | 4.53% | |
Turnpikes/Toll Road/Highway Revenue | | | 3.88% | |
Hospital and Healthcare Revenue | | | 3.53% | |
Miscellaneous Public Improvement | | | 2.43% | |
Ad Valorem Property | | | 2.11% | |
Lease Revenue | | | 1.94% | |
Escrowed to Maturity | | | 1.71% | |
Airport Revenue | | | 0.76% | |
Other Assets Less Liabilities | | | 2.25% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| | | | |
| |
Tennessee Tax-Free Income Series | |
| CREDIT QUALITY* | | % of Fair Value of
Investments Held | |
Aaa/AAA | | | 3.19% | |
Aa/AA | | | 79.67% | |
A | | | 17.09% | |
Not Rated | | | 0.05% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| COMPOSITION | | | |
| | | % of Net Assets | |
Municipal Utility Revenue | | | 33.39% | |
School Improvement | | | 13.79% | |
Prerefunded | | | 11.55% | |
Public Facilities Revenue | | | 11.50% | |
Miscellaneous Public Improvement | | | 8.76% | |
Hospital and Healthcare Revenue | | | 7.63% | |
Refunding | | | 5.53% | |
University Consolidated Education and Building Revenue | | | 4.00% | |
Airport Revenue | | | 2.99% | |
Other Assets Less Liabilities | | | 0.86% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| | | | |
| |
Tennessee Tax-Free Short-to-Medium Series | |
| CREDIT QUALITY* | | % of Fair Value of
Investments Held | |
Aaa/AAA | | | 0.36% | |
Aa/AA | | | 83.50% | |
A | | | 16.14% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| | | | | |
| COMPOSITION | | | |
| | | % of Net Assets | |
Public Facilities Revenue | | | 22.99% | |
Municipal Utility Revenue | | | 22.53% | |
Refunding | | | 21.16% | |
School Improvement | | | 17.84% | |
University Consolidated Education and Building Revenue | | | 8.59% | |
Prerefunded | | | 2.07% | |
Airport Revenue | | | 1.82% | |
Miscellaneous Public Improvement | | | 0.67% | |
Other Assets Less Liabilities | | | 2.33% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| | | | | |
v
The illustrations below provide each Fund’s sector allocation and
summarize key information about each Fund’s investments as of June 30, 2021. | Unaudited |
| | | | |
| |
Intermediate Government Bond Series | |
| CREDIT QUALITY* | | % of Fair Value of
Investments Held | |
Aaa/AAA | | | 100.00% | |
| | | | | |
| | | | | |
| | |
| | | | | |
| | | | | |
| | | | | |
| COMPOSITION | | | |
| | | % of Net Assets | |
Federal Farm Credit | | | 60.30% | |
Federal Home Loan Bank | | | 34.26% | |
Federal Home Loan Mortgage Corporation | | | 3.97% | |
Other Assets Less Liabilities | | | 1.47% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | |
| |
Taxable Municipal Bond Series | |
| CREDIT QUALITY* | | % of Fair Value of
Investments Held | |
Aaa/AAA | | | 3.23% | |
Aa/AA | | | 90.60% | |
A | | | 6.17% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| COMPOSITION | | | |
| | | % of Net Assets | |
Municipal Utility Revenue | | | 33.11% | |
Public Facilities Revenue | | | 13.95% | |
School Improvement | | | 8.85% | |
University Consolidated Education and Building Revenue | | | 8.58% | |
Refunding | | | 8.28% | |
State and Local Mortgage/Housing Revenue | | | 7.79% | |
Marina/Port Authority Revenue | | | 5.50% | |
Miscellaneous Public Improvement | | | 3.05% | |
Turnpikes/Toll Road/Highway Revenue | | | 2.96% | |
Ad Valorem Property | | | 1.80% | |
Mass Transit | | | 1.78% | |
Hospital and Healthcare Revenue | | | 1.77% | |
Airport Revenue | | | 0.89% | |
Other Assets Less Liabilities | | | 1.69% | |
| | | | | |
| | | | 100.00% | |
| | | | | |
| | | | | |
| * | Ratings by Moody’s Investors Services, Inc. unless noted otherwise. See Schedules of Portfolio Investments for individual bond ratings. |
vi
PERFORMANCE COMPARISON (Unaudited)
The following graphs compare the change in value of a $10,000 investment in each series of Dupree Mutual Funds with the change in value of a $10,000 investment in a comparable index. The comparisons are made over 10 years or since the inception of the series, if shorter than ten years. Results are for the fiscal years ended June 30.
PERFORMANCE DISCLOSURES
Past performance is not indicative of future results. The current performance may be lower or higher than the performance data quoted. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost.
The performance tables and the graphs above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
For performance data current to the most recent month-end call 800-866-0614 or visit our website at www.dupree-funds.com.
Notes on Graphs:
Results reflect reinvestment of all dividend and capital gain distributions. No index can perfectly match the investments that make up a fund’s portfolio. For each series, we have selected an index that we believe gives the most accurate picture of how the series performed during the reporting period. The investor should understand that an index is a mathematical hypothesis and does not reflect a real market situation. For example, the portfolio of each index is replaced with an entirely different portfolio each year without reflecting operating expenses or transaction costs. On the other hand, the fund’s performance reflects not only these factors but management costs as well.
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DUPREE MUTUAL FUNDS — ALABAMA TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Alabama Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
| PREREFUNDED BONDS | |
| 26.49% of Net Assets | |
Alabaster AL Board of Education Special Tax Warrants** | | | 5.000 | % | | | 09/01/2039 | | | A1 | | $ | 600,000 | | | $ | 687,652 | |
Auburn AL Waterworks Board Water Revenue | | | 5.000 | | | | 09/01/2036 | | | Aa2 | | | 250,000 | | | | 294,773 | |
Birmingham AL Waterworks** | | | 5.000 | | | | 01/01/2038 | | | Aa2 | | | 550,000 | | | | 589,941 | |
Birmingham AL Waterworks | | | 5.000 | | | | 01/01/2040 | | | Aa2 | | | 150,000 | | | | 174,318 | |
Decatur City AL Board of Education Special Tax | | | 5.000 | | | | 02/01/2040 | | | Aa2 | | | 225,000 | | | | 262,251 | |
Etowah County AL Board of Education Capital Outlay Tax | | | 5.000 | | | | 09/01/2037 | | | A+* | | | 200,000 | | | | 211,208 | |
Jasper AL Warrants | | | 5.000 | | | | 03/01/2031 | | | A2 | | | 250,000 | | | | 281,503 | |
Jasper AL Warrants | | | 5.000 | | | | 03/01/2032 | | | A2 | | | 450,000 | | | | 506,705 | |
Limestone County AL Water & Sewer Authority | | | 5.000 | | | | 12/01/2033 | | | AA-* | | | 300,000 | | | | 335,383 | |
Limestone County AL Water & Sewer Authority | | | 4.750 | | | | 12/01/2033 | | | AA* | | | 290,000 | | | | 354,598 | |
Limestone County AL Water & Sewer Authority | | | 5.000 | | | | 12/01/2034 | | | AA-* | | | 250,000 | | | | 278,368 | |
Madison AL Warrants | | | 5.000 | | | | 04/01/2035 | | | Aa2 | | | 350,000 | | | | 410,050 | |
Morgan County AL Board of Education Capital Outlay Warrants | | | 5.000 | | | | 03/01/2035 | | | NR | | | 155,000 | | | | 163,102 | |
Morgan County AL Board of Education Capital Outlay Warrants | | | 5.000 | | | | 03/01/2035 | | | NR | | | 245,000 | | | | 257,806 | |
Morgan County AL Board of Education Capital Outlay Warrants | | | 5.000 | | | | 03/01/2035 | | | AA-* | | | 405,000 | | | | 426,356 | |
Opelika AL Warrants | | | 5.000 | | | | 11/01/2031 | | | Aa2 | | | 150,000 | | | | 152,469 | |
Trussville AL Warrants | | | 5.000 | | | | 10/01/2039 | | | NR | | | 445,000 | | | | 492,771 | |
Trussville AL Warrants** | | | 5.000 | | | | 10/01/2039 | | | Aa2 | | | 775,000 | | | | 857,832 | |
Tuscaloosa AL Warrants | | | 5.000 | | | | 01/01/2032 | | | Aa1 | | | 350,000 | | | | 391,640 | |
Tuscaloosa AL Warrants | | | 5.000 | | | | 07/01/2034 | | | Aa1 | | | 300,000 | | | | 342,408 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 7,471,134 | |
| SCHOOL IMPROVEMENT BONDS | |
| 21.78% of Net Assets | |
Athens AL Warrants | | | 3.000 | | | | 05/01/2041 | | | Aa3 | | | 125,000 | | | | 136,694 | |
Bibb County AL Board of Education Special Tax | | | 4.000 | | | | 04/01/2032 | | | AA* | | | 380,000 | | | | 458,335 | |
Cherokee County AL Board of Education Tax Warrants | | | 4.000 | | | | 12/01/2034 | | | A1 | | | 310,000 | | | | 363,983 | |
Elmore County AL Board of Education | | | 4.000 | | | | 08/01/2036 | | | Aa3 | | | 225,000 | | | | 268,436 | |
Elmore County AL Board of Education | | | 4.000 | | | | 08/01/2038 | | | Aa3 | | | 250,000 | | | | 296,378 | |
Houston County AL Board of Education Special Tax School Warrants | | | 3.000 | | | | 12/01/2037 | | | AA* | | | 250,000 | | | | 275,883 | |
Jackson County AL Board of Education School Tax Warrants | | | 3.000 | | | | 03/01/2038 | | | AA* | | | 350,000 | | | | 386,789 | |
Jefferson County AL Board of Education Public School Warrants | | | 4.000 | | | | 02/01/2042 | | | A1 | | | 325,000 | | | | 375,768 | |
Jefferson County AL Public Schools | | | 4.000 | | | | 02/01/2038 | | | A1 | | | 165,000 | | | | 191,786 | |
Limestone County AL Board of Education | | | 5.000 | | | | 07/01/2033 | | | AA* | | | 255,000 | | | | 287,525 | |
Madison AL Board of Education Special Tax School Warrants | | | 4.000 | | | | 02/01/2041 | | | Aa3 | | | 370,000 | | | | 434,036 | |
Madison County AL Board of Education Capital Outlay** | | | 5.000 | | | | 09/01/2031 | | | Aa3 | | | 660,000 | | | | 784,786 | |
Marshall County AL Board of Education Special Tax School Warrants | | | 4.000 | | | | 03/01/2033 | | | A2 | | | 250,000 | | | | 279,880 | |
Mountain Brook AL City Board of Education | | | 3.000 | | | | 03/01/2042 | | | Aa1 | | | 250,000 | | | | 277,685 | |
Oxford AL Board of Education School Tax Warrants | | | 4.000 | | | | 05/01/2045 | | | Aa3 | | | 350,000 | | | | 410,141 | |
Saint Clair County AL Board of Education Special Tax Warrants | | | 3.000 | | | | 02/01/2038 | | | A1 | | | 250,000 | | | | 276,073 | |
Troy AL Public Educational Building Authority | | | 5.250 | | | | 12/01/2036 | | | A2 | | | 30,000 | | | | 30,032 | |
Tuscaloosa County AL Board of Education Special Tax School Warrants | | | 5.000 | | | | 02/01/2036 | | | Aa3 | | | 250,000 | | | | 304,803 | |
Tuscaloosa County AL Board of Education Special Tax School Warrants | | | 5.000 | | | | 02/01/2037 | | | Aa3 | | | 250,000 | | | | 304,195 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 6,143,208 | |
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS | |
| 13.90% of Net Assets | |
AL Community College System Gadsden State Community College | | | 5.000 | | | | 06/01/2038 | | | A1 | | | 325,000 | | | | 394,144 | |
AL State Public School & College Authority | | | 4.000 | | | | 11/01/2038 | | | Aa1 | | | 250,000 | | | | 305,718 | |
Auburn University AL General Fee Revenue | | | 4.000 | | | | 06/01/2036 | | | Aa2 | | | 380,000 | | | | 433,215 | |
Troy University AL Facilities Revenue | | | 5.000 | | | | 11/01/2028 | | | A1 | | | 250,000 | | | | 289,895 | |
Troy University AL Facilities Revenue | | | 4.000 | | | | 11/01/2032 | | | A1 | | | 300,000 | | | | 351,698 | |
Troy University AL Facilities Revenue | | | 5.000 | | | | 11/01/2037 | | | A1 | | | 200,000 | | | | 246,782 | |
University of AL Birmingham | | | 5.000 | | | | 10/01/2037 | | | Aa2 | | | 225,000 | | | | 247,223 | |
University of AL General Fee Revenue University of AL Huntsville | | | 5.000 | | | | 09/01/2037 | | | Aa3 | | | 250,000 | | | | 308,368 | |
University of AL Huntsville | | | 5.000 | | | | 09/01/2038 | | | Aa3 | | | 500,000 | | | | 622,755 | |
University of AL Huntsville General Fee Revenue | | | 5.000 | | | | 09/01/2038 | | | Aa3 | | | 435,000 | | | | 535,933 | |
University of South AL | | | 5.000 | | | | 04/01/2044 | | | A1 | | | 150,000 | | | | 185,808 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 3,921,539 | |
The accompanying footnotes are an integral part of the financial statements.
1
DUPREE MUTUAL FUNDS — ALABAMA TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Alabama Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
| PUBLIC FACILITIES REVENUE BONDS | |
| 11.15% of Net Assets | |
Adamsville AL Warrants | | | 3.000 | % | | | 09/01/2045 | | | AA* | | $ | 250,000 | | | $ | 272,798 | |
Anniston AL Public Building Authority DHR Project | | | 5.250 | | | | 05/01/2030 | | | AA-* | | | 50,000 | | | | 50,154 | |
Anniston AL Public Building Authority DHR Project | | | 5.500 | | | | 05/01/2033 | | | AA-* | | | 200,000 | | | | 200,646 | |
Bessemer AL Public Educational Building Authority Revenue | | | 5.000 | | | | 07/01/2030 | | | AA* | | | 140,000 | | | | 140,391 | |
Birmingham Jefferson AL Civic Center Authority Revenue | | | 5.000 | | | | 05/01/2037 | | | Aa3 | | | 500,000 | | | | 615,114 | |
Birmingham Jefferson AL Civic Center Authority Revenue | | | 5.000 | | | | 05/01/2038 | | | Aa3 | | | 250,000 | | | | 306,828 | |
Boaz AL Warrants | | | 4.000 | | | | 02/01/2037 | | | AA* | | | 250,000 | | | | 289,393 | |
Bullock County AL Public Building Authority | | | 4.000 | | | | 10/01/2038 | | | AA-* | | | 500,000 | | | | 568,595 | |
Montgomery County AL Public Building Authority | | | 5.000 | | | | 03/01/2036 | | | Aa2 | | | 350,000 | | | | 438,914 | |
Phenix City AL Public Building Authority | | | 4.000 | | | | 10/01/2035 | | | AA-* | | | 100,000 | | | | 119,851 | |
Phenix City AL Public Building Authority | | | 4.000 | | | | 10/01/2037 | | | AA-* | | | 120,000 | | | | 143,203 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 3,145,887 | |
| MUNICIPAL UTILITY REVENUE BONDS | |
| 10.13% of Net Assets | |
Athens AL Water & Sewer | | | 4.000 | | | | 05/01/2039 | | | A1 | | | 200,000 | | | | 237,048 | |
Athens AL Water & Sewer | | | 4.000 | | | | 05/01/2040 | | | A1 | | | 100,000 | | | | 118,255 | |
Berry AL Water & Sewer Revenue | | | 4.000 | | | | 09/01/2039 | | | AA* | | | 250,000 | | | | 279,783 | |
Birmingham AL Waterworks | | | 4.000 | | | | 01/01/2037 | | | Aa2 | | | 250,000 | | | | 287,600 | |
Birmingham AL Waterworks | | | 4.000 | | | | 01/01/2041 | | | Aa2 | | | 225,000 | | | | 257,933 | |
Coosa Valley Water Supply | | | 4.000 | | | | 10/01/2036 | | | AA-* | | | 150,000 | | | | 181,196 | |
Gadsden AL Waterworks & Sewer Board | | | 4.000 | | | | 06/01/2034 | | | A1 | | | 120,000 | | | | 141,266 | |
Limestone County AL Water & Sewer Authority | | | 4.750 | | | | 12/01/2035 | | | AA* | | | 400,000 | | | | 454,204 | |
Opelika AL Utilities Board | | | 4.000 | | | | 06/01/2039 | | | Aa3 | | | 250,000 | | | | 288,490 | |
Prattville AL Sewer Warrants | | | 4.000 | | | | 11/01/2042 | | | AA-* | | | 375,000 | | | | 434,160 | |
Scottsboro AL Waterworks Sewer & Gas | | | 4.000 | | | | 08/01/2040 | | | AA* | | | 150,000 | | | | 178,236 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 2,858,171 | |
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS | |
| 5.69% of Net Assets | |
Arab AL | | | 3.000 | | | | 12/01/2041 | | | AA* | | | 250,000 | | | | 273,333 | |
Birmingham AL Warrants | | | 4.000 | | | | 12/01/2035 | | | Aa3 | | | 250,000 | | | | 296,163 | |
Birmingham AL Warrants | | | 5.000 | | | | 12/01/2037 | | | Aa3 | | | 250,000 | | | | 313,840 | |
Birmingham AL Warrants | | | 4.000 | | | | 06/01/2046 | | | Aa3 | | | 600,000 | | | | 723,113 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,606,449 | |
| REFUNDING BONDS | |
| 5.15% of Net Assets | |
Montgomery AL Warrants | | | 5.000 | | | | 06/15/2035 | | | A1 | | | 500,000 | | | | 621,595 | |
Northport AL Warrants** | | | 5.000 | | | | 08/01/2040 | | | AA-* | | | 735,000 | | | | 831,079 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,452,674 | |
| HOSPITAL AND HEALTHCARE REVENUE BONDS | |
| 2.23% of Net Assets | |
Chilton County AL Health Care Authority Chilton County Hospital** | | | 5.000 | | | | 11/01/2035 | | | AA-@ | | | 550,000 | | | | 628,270 | |
| | | | | | | | | | | | | | | | | | |
| TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS | |
| 2.19% of Net Assets | |
AL Federal Aid Highway Finance Authority | | | 4.000 | | | | 06/01/2037 | | | Aa1 | | | 250,000 | | | | 293,453 | |
AL State Highway Finance Corporation | | | 5.000 | | | | 08/01/2040 | | | Aa2 | | | 250,000 | | | | 324,062 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 617,515 | |
| | | | | | | | | | | | | | | | | | |
Total Investments (cost $25,845,592) (See (a) below for further explanation) 98.71% of Net Assets | | | $ | 27,844,847 | |
| | | | | | | | | | | | | | | | | | |
Other assets in excess of liabilities 1.29% | | | | | | | | | | | | | | | | | 364,265 | |
| | | | | | | | | | | | | | | | | | |
Net Assets 100% | | | | | | | | | | | | | | | | $ | 28,209,112 | |
| | | | | | | | | | | | | | | | | | |
| | # | | Ratings by Moody’s Investors Service unless noted otherwise. |
| | | | Bond ratings are unaudited and not covered by Report of Independent Registered Public Accounting Firm. |
| | | | All ratings are as of the date indicated and do not reflect subsequent changes. |
| | * | | Rated by Standard & Poor’s Corporation |
The accompanying footnotes are an integral part of the financial statements.
2
DUPREE MUTUAL FUNDS — ALABAMA TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Alabama Municipal Bonds
June 30, 2021
| | @ | | Rated by Fitch’s Investors Service |
| | ** | | Security is segregated — see footnote 7 |
| (a) | | Cost for federal income tax purposes is $25,845,592 and net unrealized appreciation of investments is as follows: |
| | | | | | |
| | Unrealized appreciation | | $ | 2,004,071 | |
| | Unrealized depreciation | | | (4,816 | ) |
| | | | | | |
| | Net unrealized appreciation | | $ | 1,999,255 | |
| | | | | | |
Other Information
The following is a summary of the inputs used, as of June 30, 2021, 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 | | | 27,844,847 | |
Level 3 | | Significant Unobservable Inputs | | | — | |
| | | | | | |
| | | | $ | 27,844,847 | |
| | | | | | |
The accompanying footnotes are an integral part of the financial statements.
3
ALABAMA TAX-FREE INCOME SERIES
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2021
| | | | | | | | |
ASSETS: | | | | | | | | |
Investments in securities, at fair value (Cost: $25,845,592) | | | | | | $ | 27,844,847 | |
Cash | | | | | | | 143,421 | |
Receivable for fund shares sold | | | | | | | 37,000 | |
Interest receivable | | | | | | | 295,198 | |
| | | | | | | | |
Total assets | | | | | | | 28,320,466 | |
LIABILITIES: | | | | | | | | |
Payable for: | | | | | | | | |
Distributions to shareholders | | | 83,653 | | | | | |
Fund shares redeemed | | | 4,704 | | | | | |
Investment advisory fee | | | 7,195 | | | | | |
Transfer agent fee | | | 7,212 | | | | | |
Professional fees | | | 2,796 | | | | | |
Custodian expense | | | 1,237 | | | | | |
Trustees fees | | | 1,050 | | | | | |
Accrued expenses | | | 3,507 | | | | | |
| | | | | | | | |
Total liabilities | | | | | | | 111,354 | |
| | | | | | | | |
NET ASSETS: | | | | | | | | |
Capital | | | | | | | 26,208,199 | |
Total distributable earnings | | | | | | | 2,000,913 | |
| | | | | | | | |
Net assets at value | | | | | | $ | 28,209,112 | |
| | | | | | | | |
NET ASSET VALUE, offering price and redemption price per share
(2,194,193 shares outstanding; unlimited number of shares authorized; no par value) | | | | | | $ | 12.86 | |
| | | | | | | | |
STATEMENT OF OPERATIONS
For the year ended June 30, 2021
| | | | |
Net investment income: | | | | |
Interest income | | $ | 819,520 | |
| | | | |
Expenses: | | | | |
Investment advisory fee | | | 138,312 | |
Transfer agent fee | | | 39,195 | |
Custodian expense | | | 8,658 | |
Professional fees | | | 6,222 | |
Compliance fees | | | 7,201 | |
Pricing fees | | | 6,001 | |
Registration fees | | | 5,064 | |
Trustees fees | | | 2,873 | |
Other expenses | | | 6,682 | |
| | | | |
Total expenses | | | 220,208 | |
Fees waived by Adviser (Note 2) | | | (26,544 | ) |
Custodian expense reduction (Note 7) | | | (36 | ) |
| | | | |
Net expenses | | | 193,628 | |
| | | | |
Net investment income | | | 625,892 | |
| | | | |
Realized and unrealized gain on investments: | | | | |
Net realized gain | | | 73,063 | |
Net change in unrealized appreciation/depreciation | | | 100,184 | |
| | | | |
Net realized and unrealized gain on investments | | | 173,247 | |
| | | | |
Net increase in net assets resulting from operations | | $ | 799,139 | |
| | | | |
The accompanying footnotes are an integral part of the financial statements.
4
ALABAMA TAX-FREE INCOME SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended June 30, 2021 and 2020
| | | | | | | | |
| | | 2021 | | | 2020 | |
Operations: | | | | | | | | |
Net investment income | | $ | 625,892 | | | $ | 680,102 | |
Net realized gain on investments | | | 73,063 | | | | 18,246 | |
Net change in unrealized appreciation/depreciation | | | 100,184 | | | | 680,806 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 799,139 | | | | 1,379,154 | |
Total distributions (Note 6) | | | (625,892 | ) | | | (680,102 | ) |
Net Fund share transactions (Note 4) | | | 681,869 | | | | 501,183 | |
| | | | | | | | |
Total increase | | | 855,116 | | | | 1,200,235 | |
Net assets: | | | | | | | | |
Beginning of year | | | 27,353,996 | | | | 26,153,761 | |
| | | | | | | | |
End of year | | $ | 28,209,112 | | | $ | 27,353,996 | |
| | | | | | | | |
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Selected data for a share outstanding: | | For the years ended June 30, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
Net asset value, beginning of year | | | $12.78 | | | | $12.43 | | | | $12.08 | | | | $12.29 | | | | $12.77 | |
| | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.29 | | | | 0.33 | | | | 0.34 | | | | 0.36 | | | | 0.37 | |
Net gains/(losses) on investments | | | 0.08 | | | | 0.35 | | | | 0.35 | | | | (0.21 | ) | | | (0.48 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.37 | | | | 0.68 | | | | 0.69 | | | | 0.15 | | | | (0.11 | ) |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income | | | (0.29 | ) | | | (0.33 | ) | | | (0.34 | ) | | | (0.36 | ) | | | (0.37 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, end of year | | | $12.86 | | | | $12.78 | | | | $12.43 | | | | $12.08 | | | | $12.29 | |
| | | | | | | | | | | | | | | | | | | | |
Total return | | | 2.93% | | | | 5.49% | | | | 5.80% | | | | 1.24% | | | | (0.82)% | |
Net assets, end of year (in thousands) | | | $28,209 | | | | $27,354 | | | | $26,154 | | | | $25,255 | | | | $26,555 | |
Ratio of net expenses to average net assets (a) | | | 0.70% | | | | 0.70% | | | | 0.70% | | | | 0.70% | | | | 0.70% | |
Ratio of gross expenses to average net assets | | | 0.80% | | | | 0.82% | | | | 0.84% | | | | 0.82% | | | | 0.78% | |
Ratio of net investment income to average net assets | | | 2.26% | | | | 2.58% | | | | 2.79% | | | | 2.96% | | | | 3.00% | |
Portfolio turnover | | | 13.38% | | | | 6.98% | | | | 16.54% | | | | 13.83% | | | | 6.95% | |
| (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. |
The accompanying footnotes are an integral part of the financial statements.
5
DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Kentucky Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS | | | | | | | | | | | | | | | | | | |
| 33.34% of Net Assets | | | | | | | | | | | | | | | | | | |
KY Association of Counties | | | 4.000 | % | | | 02/01/2028 | | | AA-* | | $ | 345,000 | | | $ | 407,431 | |
KY Association of Counties | | | 4.000 | | | | 02/01/2029 | | | AA-* | | | 240,000 | | | | 287,623 | |
KY Association of Counties | | | 5.000 | | | | 02/01/2030 | | | AA-* | | | 385,000 | | | | 477,535 | |
KY Association of Counties | | | 5.000 | | | | 02/01/2031 | | | AA-* | | | 255,000 | | | | 314,448 | |
KY Association of Counties | | | 4.000 | | | | 02/01/2033 | | | AA-* | | | 420,000 | | | | 478,745 | |
KY Association of Counties | | | 4.000 | | | | 02/01/2034 | | | AA-* | | | 435,000 | | | | 493,999 | |
KY Association of Counties | | | 4.000 | | | | 02/01/2035 | | | AA-* | | | 690,000 | | | | 798,254 | |
KY Association of Counties | | | 4.000 | | | | 02/01/2035 | | | AA-* | | | 460,000 | | | | 520,444 | |
KY Association of Counties | | | 4.000 | | | | 02/01/2037 | | | AA-* | | | 745,000 | | | | 860,371 | |
KY Association of Counties | | | 4.000 | | | | 02/01/2038 | | | AA-* | | | 3,165,000 | | | | 3,650,828 | |
KY Association of Counties | | | 4.000 | | | | 02/01/2039 | | | AA-* | | | 1,000,000 | | | | 1,152,150 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2036 | | | AA-* | | | 1,240,000 | | | | 1,338,419 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2032 | | | AA-* | | | 550,000 | | | | 601,189 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2033 | | | AA-* | | | 1,010,000 | | | | 1,102,011 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2033 | | | AA-* | | | 905,000 | | | | 992,450 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2034 | | | AA-* | | | 1,070,000 | | | | 1,163,272 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2035 | | | AA-* | | | 1,170,000 | | | | 1,268,186 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2038 | | | AA-* | | | 980,000 | | | | 1,059,694 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2041 | | | AA-* | | | 1,000,000 | | | | 1,067,790 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2034 | | | AA-* | | | 925,000 | | | | 1,015,077 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2035 | | | AA-* | | | 930,000 | | | | 1,016,397 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2036 | | | AA-* | | | 965,000 | | | | 1,052,487 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2037 | | | AA-* | | | 990,000 | | | | 1,075,348 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2038 | | | AA-* | | | 1,025,000 | | | | 1,110,331 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2039 | | | AA-* | | | 1,050,000 | | | | 1,135,092 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2040 | | | AA-* | | | 1,030,000 | | | | 1,111,947 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2041 | | | AA-* | | | 1,065,000 | | | | 1,147,388 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2042 | | | AA-* | | | 420,000 | | | | 451,261 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2043 | | | AA-* | | | 430,000 | | | | 461,377 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2044 | | | AA-* | | | 450,000 | | | | 481,851 | |
KY Bond Corporation Finance Program | | | 3.000 | | | | 02/01/2047 | | | AA-* | | | 1,100,000 | | | | 1,174,657 | |
KY State Property & Building #76 | | | 5.500 | | | | 08/01/2021 | | | A1 | | | 1,400,000 | | | | 1,406,160 | |
KY State Property & Building #105 | | | 4.750 | | | | 04/01/2031 | | | A2 | | | 2,110,000 | | | | 2,267,047 | |
KY State Property & Building #105 | | | 4.750 | | | | 04/01/2032 | | | A2 | | | 2,205,000 | | | | 2,367,928 | |
KY State Property & Building #105 | | | 4.750 | | | | 04/01/2033 | | | A2 | | | 2,310,000 | | | | 2,479,415 | |
KY State Property & Building #106 | | | 5.000 | | | | 10/01/2028 | | | A1 | | | 2,030,000 | | | | 2,237,263 | |
KY State Property & Building #106 | | | 5.000 | | | | 10/01/2029 | | | A1 | | | 4,130,000 | | | | 4,557,579 | |
KY State Property & Building #106 | | | 5.000 | | | | 10/01/2030 | | | A1 | | | 7,165,000 | | | | 7,896,547 | |
KY State Property & Building #106 | | | 5.000 | | | | 10/01/2031 | | | A1 | | | 4,910,000 | | | | 5,406,647 | |
KY State Property & Building #106 | | | 5.000 | | | | 10/01/2032 | | | A1 | | | 6,275,000 | | | | 6,897,794 | |
KY State Property & Building #106 | | | 5.000 | | | | 10/01/2033 | | | A1 | | | 4,870,000 | | | | 5,349,890 | |
KY State Property & Building #108 | | | 5.000 | | | | 08/01/2026 | | | A1 | | | 955,000 | | | | 1,121,819 | |
KY State Property & Building #108 | | | 5.000 | | | | 08/01/2028 | | | A1 | | | 2,670,000 | | | | 3,130,495 | |
KY State Property & Building #108 | | | 5.000 | | | | 08/01/2030 | | | A1 | | | 5,000,000 | | | | 5,857,950 | |
KY State Property & Building #108 | | | 5.000 | | | | 08/01/2031 | | | A1 | | | 8,290,000 | | | | 9,690,513 | |
KY State Property & Building #108 | | | 5.000 | | | | 08/01/2032 | | | A1 | | | 8,820,000 | | | | 10,310,051 | |
KY State Property & Building #108 | | | 5.000 | | | | 08/01/2033 | | | A1 | | | 5,270,000 | | | | 6,153,357 | |
KY State Property & Building #108 | | | 5.000 | | | | 08/01/2034 | | | A1 | | | 4,900,000 | | | | 5,717,075 | |
KY State Property & Building #110 | | | 5.000 | | | | 08/01/2029 | | | A1 | | | 4,200,000 | | | | 4,920,678 | |
KY State Property & Building #110 | | | 5.000 | | | | 08/01/2032 | | | A1 | | | 1,515,000 | | | | 1,770,944 | |
KY State Property & Building #110 | | | 5.000 | | | | 08/01/2033 | | | A1 | | | 1,000,000 | | | | 1,167,620 | |
KY State Property & Building #110 | | | 5.000 | | | | 08/01/2034 | | | A1 | | | 1,900,000 | | | | 2,216,825 | |
KY State Property & Building #110 | | | 5.000 | | | | 08/01/2035 | | | A1 | | | 3,680,000 | | | | 4,290,402 | |
KY State Property & Building #112 | | | 5.000 | | | | 11/01/2028 | | | A1 | | | 2,765,000 | | | | 3,367,189 | |
KY State Property & Building #112 | | | 5.000 | | | | 02/01/2035 | | | A1 | | | 8,325,000 | | | | 9,838,568 | |
KY State Property & Building #112 | | | 5.000 | | | | 02/01/2036 | | | A1 | | | 7,920,000 | | | | 9,340,452 | |
The accompanying footnotes are an integral part of the financial statements.
6
DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Kentucky Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
KY State Property & Building #115 | | | 5.000 | % | | | 04/01/2028 | | | A1 | | $ | 5,000,000 | | | $ | 6,146,750 | |
KY State Property & Building #115 | | | 5.000 | | | | 04/01/2033 | | | A1 | | | 4,565,000 | | | | 5,543,371 | |
KY State Property & Building #115 | | | 5.000 | | | | 04/01/2034 | | | A1 | | | 13,975,000 | | | | 16,952,793 | |
KY State Property & Building #115 | | | 5.000 | | | | 04/01/2036 | | | A1 | | | 14,460,000 | | | | 17,469,560 | |
KY State Property & Building #115 | | | 5.000 | | | | 04/01/2037 | | | A1 | | | 5,000,000 | | | | 6,037,550 | |
KY State Property & Building #117 | | | 5.000 | | | | 05/01/2031 | | | A1 | | | 5,055,000 | | | | 6,172,762 | |
KY State Property & Building #117 | | | 5.000 | | | | 05/01/2032 | | | A1 | | | 3,680,000 | | | | 4,482,093 | |
KY State Property & Building #117 | | | 5.000 | | | | 05/01/2033 | | | A1 | | | 3,550,000 | | | | 4,312,576 | |
KY State Property & Building #117 | | | 5.000 | | | | 05/01/2034 | | | A1 | | | 5,825,000 | | | | 7,065,259 | |
KY State Property & Building #117 | | | 5.000 | | | | 05/01/2035 | | | A1 | | | 5,065,000 | | | | 6,133,918 | |
KY State Property & Building #117 | | | 5.000 | | | | 05/01/2036 | | | A1 | | | 5,275,000 | | | | 6,374,996 | |
KY State Property & Building #119 | | | 5.000 | | | | 05/01/2030 | | | A1 | | | 3,920,000 | | | | 4,909,408 | |
KY State Property & Building #119 | | | 5.000 | | | | 05/01/2034 | | | A1 | | | 725,000 | | | | 898,841 | |
KY State Property & Building #119 | | | 5.000 | | | | 05/01/2035 | | | A1 | | | 10,000,000 | | | | 12,287,700 | |
KY State Property & Building #119 | | | 5.000 | | | | 05/01/2036 | | | A1 | | | 10,000,000 | | | | 12,265,800 | |
KY State Property & Building #119 | | | 5.000 | | | | 05/01/2037 | | | A1 | | | 770,000 | | | | 942,226 | |
KY State Property & Building #119 | | | 4.000 | | | | 05/01/2038 | | | A1 | | | 265,000 | | | | 302,336 | |
KY State Property & Building #122 | | | 5.000 | | | | 11/01/2031 | | | A1 | | | 790,000 | | | | 1,002,739 | |
KY State Property & Building #122 | | | 5.000 | | | | 11/01/2033 | | | A1 | | | 1,000,000 | | | | 1,256,490 | |
KY State Property & Building #122 | | | 4.000 | | | | 11/01/2034 | | | A1 | | | 750,000 | | | | 871,298 | |
KY State Property & Building #122 | | | 4.000 | | | | 11/01/2035 | | | A1 | | | 2,500,000 | | | | 2,909,950 | |
KY State Property & Building #122 | | | 4.000 | | | | 11/01/2036 | | | A1 | | | 1,750,000 | | | | 2,026,465 | |
KY State Property & Building #122 | | | 4.000 | | | | 11/01/2037 | | | A1 | | | 3,000,000 | | | | 3,496,470 | |
KY State Property & Building #122 | | | 4.000 | | | | 11/01/2037 | | | A1 | | | 675,000 | | | | 790,270 | |
KY State Property & Building #122 | | | 4.000 | | | | 11/01/2038 | | | A1 | | | 6,595,000 | | | | 7,612,345 | |
KY State Property & Building #122 | | | 4.000 | | | | 11/01/2039 | | | A1 | | | 9,655,000 | | | | 11,209,260 | |
KY State Property & Building #124 | | | 5.000 | | | | 11/01/2034 | | | A1 | | | 2,000,000 | | | | 2,628,020 | |
KY State Property & Building #124 | | | 5.000 | | | | 11/01/2037 | | | A1 | | | 7,530,000 | | | | 9,840,806 | |
KY State Property & Building #124 | | | 5.000 | | | | 11/01/2038 | | | A1 | | | 7,915,000 | | | | 10,327,885 | |
KY State Property & Building #124 | | | 5.000 | | | | 11/01/2039 | | | A1 | | | 8,325,000 | | | | 10,837,568 | |
Louisville & Jefferson County Visitors & Convention Commission | | | 4.000 | | | | 06/01/2034 | | | Aa3 | | | 3,720,000 | | | | 4,101,746 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 336,237,511 | |
| SCHOOL IMPROVEMENT BONDS | | | | | | | | | | | | | | | | | | |
| 14.73% of Net Assets | | | | | | | | | | | | | | | | | | |
Bowling Green KY School District Finance Corporation | | | 4.000 | | | | 08/01/2034 | | | A1 | | | 1,890,000 | | | | 2,140,349 | |
Bowling Green KY School District Finance Corporation | | | 4.000 | | | | 08/01/2035 | | | A1 | | | 2,215,000 | | | | 2,508,399 | |
Bowling Green KY School District Finance Corporation | | | 4.000 | | | | 08/01/2036 | | | A1 | | | 2,305,000 | | | | 2,596,997 | |
Bowling Green KY School District Finance Corporation | | | 4.000 | | | | 08/01/2037 | | | A1 | | | 2,395,000 | | | | 2,719,834 | |
Bullitt County KY School District Finance Corporation | | | 4.000 | | | | 10/01/2035 | | | A1 | | | 1,820,000 | | | | 2,068,703 | |
Bullitt County KY School District Finance Corporation | | | 4.000 | | | | 10/01/2036 | | | A1 | | | 2,985,000 | | | | 3,373,438 | |
Bullitt County KY School District Finance Corporation | | | 4.000 | | | | 10/01/2037 | | | A1 | | | 3,075,000 | | | | 3,495,199 | |
Fayette County KY School District Finance Corporation | | | 5.000 | | | | 08/01/2028 | | | Aa3 | | | 1,330,000 | | | | 1,564,679 | |
Fayette County KY School District Finance Corporation | | | 5.000 | | | | 10/01/2028 | | | Aa3 | | | 1,375,000 | | | | 1,515,058 | |
Fayette County KY School District Finance Corporation | | | 5.000 | | | | 10/01/2029 | | | Aa3 | | | 3,660,000 | | | | 4,029,331 | |
Fayette County KY School District Finance Corporation | | | 4.750 | | | | 11/01/2031 | | | Aa3 | | | 1,730,000 | | | | 1,966,162 | |
Fayette County KY School District Finance Corporation | | | 5.000 | | | | 08/01/2032 | | | Aa3 | | | 10,600,000 | | | | 12,414,082 | |
Fayette County KY School District Finance Corporation | | | 5.000 | | | | 10/01/2032 | | | Aa3 | | | 3,615,000 | | | | 3,978,922 | |
Fayette County KY School District Finance Corporation | | | 5.000 | | | | 10/01/2033 | | | Aa3 | | | 4,385,000 | | | | 4,826,438 | |
Fayette County KY School District Finance Corporation | | | 5.000 | | | | 08/01/2034 | | | Aa3 | | | 8,750,000 | | | | 10,232,075 | |
Hardin County KY School District Finance Corporation | | | 4.000 | | | | 05/01/2030 | | | Aa3 | | | 635,000 | | | | 727,297 | |
Hopkins County KY School District Finance Corporation | | | 3.000 | | | | 02/01/2031 | | | A1 | | | 1,235,000 | | | | 1,383,348 | |
Hopkins County KY School District Finance Corporation | | | 3.000 | | | | 02/01/2032 | | | A1 | | | 1,000,000 | | | | 1,117,060 | |
Jefferson County KY School District Finance Corporation | | | 5.000 | | | | 04/01/2030 | | | Aa3 | | | 975,000 | | | | 1,131,585 | |
Jefferson County KY School District Finance Corporation | | | 4.000 | | | | 05/01/2030 | | | Aa3 | | | 2,000,000 | | | | 2,190,340 | |
Jefferson County KY School District Finance Corporation | | | 5.000 | | | | 04/01/2031 | | | Aa3 | | | 1,025,000 | | | | 1,186,714 | |
Jefferson County KY School District Finance Corporation | | | 5.000 | | | | 05/01/2032 | | | Aa3 | | | 4,230,000 | | | | 4,744,918 | |
Jefferson County KY School District Finance Corporation | | | 4.000 | | | | 06/01/2032 | | | Aa3 | | | 4,120,000 | | | | 4,737,506 | |
Jefferson County KY School District Finance Corporation | | | 5.000 | | | | 05/01/2033 | | | Aa3 | | | 5,145,000 | | | | 5,771,301 | |
The accompanying footnotes are an integral part of the financial statements.
7
DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Kentucky Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
Jefferson County KY School District Finance Corporation | | | 4.000 | % | | | 06/01/2033 | | | Aa3 | | $ | 4,310,000 | | | $ | 4,949,259 | |
Jefferson County KY School District Finance Corporation | | | 4.750 | | | | 04/01/2034 | | | Aa3 | | | 1,165,000 | | | | 1,333,844 | |
Jefferson County KY School District Finance Corporation | | | 5.000 | | | | 05/01/2034 | | | Aa3 | | | 5,405,000 | | | | 6,062,951 | |
Jefferson County KY School District Finance Corporation | | | 4.000 | | | | 06/01/2034 | | | Aa3 | | | 3,500,000 | | | | 4,010,055 | |
Jefferson County KY School District Finance Corporation | | | 4.750 | | | | 04/01/2035 | | | Aa3 | | | 1,220,000 | | | | 1,395,363 | |
Jefferson County KY School District Finance Corporation | | | 4.250 | | | | 10/01/2037 | | | Aa3 | | | 2,110,000 | | | | 2,449,478 | |
Kenton County KY School District Finance Corporation | | | 4.000 | | | | 04/01/2036 | | | A1 | | | 1,210,000 | | | | 1,417,975 | |
Kenton County KY School District Finance Corporation | | | 4.000 | | | | 04/01/2037 | | | A1 | | | 1,255,000 | | | | 1,458,385 | |
Kenton County KY School District Finance Corporation | | | 4.000 | | | | 04/01/2038 | | | A1 | | | 1,300,000 | | | | 1,507,948 | |
Meade County KY School District Finance Corporation | | | 4.000 | | | | 06/01/2036 | | | A1 | | | 2,215,000 | | | | 2,500,203 | |
Meade County KY School District Finance Corporation | | | 4.000 | | | | 06/01/2037 | | | A1 | | | 2,255,000 | | | | 2,546,504 | |
Meade County KY School District Finance Corporation | | | 4.000 | | | | 06/01/2038 | | | A1 | | | 2,400,000 | | | | 2,710,248 | |
Morgan County KY School District Finance Corporation | | | 4.000 | | | | 08/01/2029 | | | A1 | | | 960,000 | | | | 1,122,835 | |
Oldham County KY School District Finance Corporation | | | 4.000 | | | | 10/01/2034 | | | A1 | | | 1,560,000 | | | | 1,785,108 | |
Scott County KY School District Finance Corporation | | | 4.500 | | | | 01/01/2025 | | | A1 | | | 4,890,000 | | | | 5,555,529 | |
Scott County KY School District Finance Corporation | | | 4.000 | | | | 02/01/2029 | | | Aa3 | | | 5,040,000 | | | | 6,129,598 | |
Scott County KY School District Finance Corporation | | | 4.000 | | | | 06/01/2035 | | | Aa3 | | | 1,440,000 | | | | 1,637,208 | |
Scott County KY School District Finance Corporation | | | 4.000 | | | | 10/01/2035 | | | Aa3 | | | 2,235,000 | | | | 2,558,740 | |
Scott County KY School District Finance Corporation | | | 4.000 | | | | 06/01/2036 | | | Aa3 | | | 1,500,000 | | | | 1,698,510 | |
Scott County KY School District Finance Corporation | | | 4.000 | | | | 10/01/2037 | | | Aa3 | | | 2,415,000 | | | | 2,745,010 | |
Shelby County KY School District Finance Corporation | | | 4.000 | | | | 08/01/2037 | | | Aa3 | | | 6,240,000 | | | | 7,102,805 | |
Shelby County KY School District Finance Corporation | | | 4.000 | | | | 08/01/2038 | | | Aa3 | | | 3,000,000 | | | | 3,413,220 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 148,510,511 | |
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS | | | | | | | | |
| 13.22% of Net Assets | | | | | | | | | | | | | | | | | | |
Boyle County Centre College | | | 5.000 | | | | 06/01/2037 | | | A3 | | | 2,865,000 | | | | 3,445,306 | |
KY Bond Development Corporation Educational Facilities Centre College | | | 5.000 | | | | 06/01/2033 | | | A3 | | | 1,345,000 | | | | 1,652,292 | |
KY Bond Development Corporation Educational Facilities Centre College | | | 5.000 | | | | 06/01/2034 | | | A3 | | | 1,605,000 | | | | 1,966,976 | |
KY Bond Development Corporation Educational Facilities Centre College | | | 5.000 | | | | 06/01/2035 | | | A3 | | | 2,165,000 | | | | 2,650,090 | |
KY Bond Development Corporation Educational Facilities Centre College | | | 5.000 | | | | 06/01/2036 | | | A3 | | | 2,835,000 | | | | 3,466,043 | |
KY Bond Development Corporation Educational Facilities Centre College | | | 5.000 | | | | 06/01/2038 | | | A3 | | | 1,340,000 | | | | 1,635,323 | |
KY Bond Development Corporation Educational Facilities Centre College | | | 4.000 | | | | 06/01/2038 | | | A3 | | | 200,000 | | | | 238,404 | |
KY Bond Development Corporation Educational Facilities Centre College | | | 3.000 | | | | 06/01/2039 | | | A3 | | | 575,000 | | | | 626,497 | |
KY Bond Development Corporation Educational Facilities Centre College | | | 4.000 | | | | 06/01/2040 | | | A3 | | | 425,000 | | | | 504,913 | |
KY Bond Development Corporation Educational Facilities Centre College | | | 3.000 | | | | 06/01/2041 | | | A3 | | | 645,000 | | | | 699,135 | |
KY Bond Development Corporation Educational Facilities Centre College | | | 4.000 | | | | 06/01/2046 | | | A3 | | | 3,245,000 | | | | 3,819,884 | |
KY Bond Development Corporation Educational Facilities Centre College | | | 4.000 | | | | 06/01/2051 | | | A3 | | | 2,950,000 | | | | 3,478,434 | |
KY State Property & Building #114 | | | 5.000 | | | | 10/01/2032 | | | A1 | | | 2,795,000 | | | | 3,365,683 | |
KY State Property & Building #114 | | | 5.000 | | | | 10/01/2033 | | | A1 | | | 2,940,000 | | | | 3,536,938 | |
KY State Property & Building #114 | | | 5.000 | | | | 10/01/2034 | | | A1 | | | 3,090,000 | | | | 3,710,379 | |
KY State Property & Building #114 | | | 5.000 | | | | 10/01/2035 | | | A1 | | | 1,945,000 | | | | 2,333,300 | |
KY State Property & Building #116 | | | 5.000 | | | | 10/01/2035 | | | A1 | | | 4,165,000 | | | | 5,073,512 | |
KY State Property & Building #116 | | | 5.000 | | | | 10/01/2036 | | | A1 | | | 2,725,000 | | | | 3,313,954 | |
Murray State University | | | 5.000 | | | | 03/01/2032 | | | A1 | | | 2,220,000 | | | | 2,541,722 | |
University of Kentucky Certificate of Participation | | | 4.000 | | | | 05/01/2033 | | | Aa3 | | | 885,000 | | | | 1,049,424 | |
University of Kentucky Certificate of Participation | | | 4.000 | | | | 05/01/2034 | | | Aa3 | | | 1,020,000 | | | | 1,207,843 | |
University of Kentucky Certificate of Participation | | | 4.000 | | | | 05/01/2039 | | | Aa3 | | | 4,660,000 | | | | 5,428,294 | |
The accompanying footnotes are an integral part of the financial statements.
8
DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Kentucky Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
University of Kentucky Certificate of Participation | | | 4.000 | % | | | 05/01/2044 | | | Aa3 | | $ | 3,755,000 | | | $ | 4,326,511 | |
University of Kentucky General Receipts | | | 5.000 | | | | 04/01/2030 | | | Aa2 | | | 5,490,000 | | | | 6,358,408 | |
University of Kentucky General Receipts | | | 5.000 | | | | 04/01/2036 | | | Aa2 | | | 6,390,000 | | | | 7,119,163 | |
University of Kentucky General Receipts | | | 4.000 | | | | 10/01/2036 | | | Aa2 | | | 16,160,000 | | | | 18,180,322 | |
University of Kentucky General Receipts | | | 5.000 | | | | 04/01/2037 | | | Aa2 | | | 7,180,000 | | | | 7,993,063 | |
University of Kentucky General Receipts | | | 5.000 | | | | 04/01/2038 | | | Aa2 | | | 7,395,000 | | | | 8,234,554 | |
University of Kentucky General Receipts | | | 4.000 | | | | 10/01/2038 | | | Aa2 | | | 10,855,000 | | | | 12,206,773 | |
University of Kentucky Higher Educational | | | 4.750 | | | | 04/01/2034 | | | Aa2 | | | 5,435,000 | | | | 6,214,053 | |
University of Louisville | | | 3.000 | | | | 09/01/2039 | | | A1 | | | 1,450,000 | | | | 1,582,777 | |
University of Louisville | | | 3.000 | | | | 09/01/2040 | | | A1 | | | 1,495,000 | | | | 1,628,324 | |
University of Louisville | | | 3.000 | | | | 09/01/2042 | | | A1 | | | 1,575,000 | | | | 1,711,726 | |
Western KY University | | | 4.000 | | | | 09/01/2034 | | | A1 | | | 575,000 | | | | 660,750 | |
Western KY University | | | 4.000 | | | | 09/01/2035 | | | A1 | | | 595,000 | | | | 680,829 | |
Western KY University | | | 4.000 | | | | 09/01/2036 | | | A1 | | | 620,000 | | | | 703,092 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 133,344,691 | |
| MUNICIPAL UTILITY REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 10.86% of Net Assets | | | | | | | | | | | | | | | | | | |
Campbell & Kenton County Sanitation District #1 | | | 4.000 | | | | 08/01/2032 | | | Aa2 | | | 6,100,000 | | | | 7,070,937 | |
Frankfort KY Electric & Water | | | 4.750 | | | | 12/01/2034 | | | AA* | | | 695,000 | | | | 787,915 | |
Frankfort KY Electric & Water | | | 4.750 | | | | 12/01/2035 | | | AA* | | | 725,000 | | | | 821,403 | |
Frankfort KY Electric & Water | | | 4.750 | | | | 12/01/2036 | | | AA* | | | 760,000 | | | | 860,502 | |
Frankfort KY Electric & Water | | | 4.750 | | | | 12/01/2037 | | | AA* | | | 800,000 | | | | 905,216 | |
Frankfort KY Electric & Water | | | 4.750 | | | | 12/01/2038 | | | AA* | | | 835,000 | | | | 946,030 | |
KY Bond Development Corporation | | | 5.000 | | | | 09/01/2030 | | | A2 | | | 2,515,000 | | | | 3,265,979 | |
KY Bond Development Corporation | | | 5.000 | | | | 09/01/2031 | | | A2 | | | 2,645,000 | | | | 3,432,284 | |
KY Bond Development Corportatin | | | 5.000 | | | | 09/01/2032 | | | A2 | | | 2,780,000 | | | | 3,583,837 | |
KY Rural Water Financing Corporation | | | 4.500 | | | | 02/01/2023 | | | A+* | | | 1,085,000 | | | | 1,155,265 | |
KY Rural Water Financing Corporation | | | 4.500 | | | | 02/01/2024 | | | A+* | | | 880,000 | | | | 938,001 | |
KY Rural Water Financing Corporation | | | 3.000 | | | | 02/01/2032 | | | A+* | | | 240,000 | | | | 264,814 | |
KY Rural Water Financing Corporation | | | 3.000 | | | | 02/01/2033 | | | A+* | | | 370,000 | | | | 406,031 | |
KY Rural Water Financing Corporation | | | 5.125 | | | | 02/01/2035 | | | A+* | | | 295,000 | | | | 295,797 | |
KY State Association of Counties Finance Corporation | | | 4.000 | | | | 02/01/2031 | | | AA-* | | | 405,000 | | | | 473,805 | |
KY State Association of Counties Finance Corporation | | | 4.000 | | | | 02/01/2033 | | | AA-* | | | 415,000 | | | | 482,089 | |
Louisville & Jefferson County Metropolitan Sewer | | | 4.000 | | | | 05/15/2030 | | | Aa3 | | | 3,120,000 | | | | 3,637,046 | |
Louisville & Jefferson County Metropolitan Sewer | | | 4.000 | | | | 05/15/2033 | | | Aa3 | | | 1,000,000 | | | | 1,112,710 | |
Louisville & Jefferson County Metropolitan Sewer ** | | | 5.000 | | | | 05/15/2034 | | | Aa3 | | | 27,730,000 | | | | 28,239,400 | |
Louisville & Jefferson County Metropolitan Sewer | | | 4.750 | | | | 05/15/2034 | | | Aa3 | | | 2,230,000 | | | | 2,537,918 | |
Louisville & Jefferson County Metropolitan Sewer | | | 5.000 | | | | 05/15/2034 | | | Aa3 | | | 4,595,000 | | | | 5,444,845 | |
Louisville & Jefferson County Metropolitan Sewer | | | 4.750 | | | | 05/15/2035 | | | Aa3 | | | 2,245,000 | | | | 2,554,181 | |
Louisville & Jefferson County Metropolitan Sewer | | | 5.000 | | | | 05/15/2035 | | | Aa3 | | | 4,825,000 | | | | 5,715,068 | |
Louisville & Jefferson County Metropolitan Sewer | | | 4.750 | | | | 05/15/2036 | | | Aa3 | | | 2,795,000 | | | | 3,174,896 | |
Louisville & Jefferson County Metropolitan Sewer | | | 4.000 | | | | 05/15/2037 | | | Aa3 | | | 10,000,000 | | | | 11,806,100 | |
Louisville & Jefferson County Metropolitan Sewer | | | 3.250 | | | | 05/15/2046 | | | Aa3 | | | 2,450,000 | | | | 2,624,685 | |
Northern KY Water District | | | 5.000 | | | | 02/01/2026 | | | Aa2 | | | 1,000,000 | | | | 1,028,460 | |
Northern KY Water District | | | 5.000 | | | | 02/01/2027 | | | Aa2 | | | 4,315,000 | | | | 4,437,287 | |
Owensboro KY Electric Light & Power | | | 4.000 | | | | 01/01/2031 | | | A3 | | | 245,000 | | | | 281,142 | |
Owensboro KY Electric Light & Power | | | 4.000 | | | | 01/01/2033 | | | A3 | | | 275,000 | | | | 312,741 | |
Owensboro KY Electric Light & Power | | | 4.000 | | | | 01/01/2034 | | | A3 | | | 305,000 | | | | 346,166 | |
Owensboro KY Electric Light & Power | | | 4.000 | | | | 01/01/2035 | | | A3 | | | 200,000 | | | | 226,654 | |
Owensboro KY Electric Light & Power | | | 4.000 | | | | 01/01/2036 | | | A3 | | | 325,000 | | | | 367,578 | |
Owensboro KY Electric Light & Power | | | 4.000 | | | | 01/01/2037 | | | A3 | | | 410,000 | | | | 462,788 | |
Owensboro KY Water Revenue | | | 4.000 | | | | 09/15/2034 | | | A1 | | | 2,075,000 | | | | 2,386,707 | |
Owensboro KY Water Revenue | | | 4.000 | | | | 09/15/2035 | | | A1 | | | 2,155,000 | | | | 2,474,565 | |
Owensboro KY Water Revenue | | | 4.000 | | | | 09/15/2037 | | | A1 | | | 1,950,000 | | | | 2,231,697 | |
Owensboro KY Water Revenue | | | 4.000 | | | | 09/15/2039 | | | A1 | | | 2,125,000 | | | | 2,423,881 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 109,516,420 | |
The accompanying footnotes are an integral part of the financial statements.
9
DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Kentucky Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
| TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 6.62% of Net Assets | | | | | | | | | | | | | | | | | | |
KY Asset Liability Commission Federal Highway | | | 5.250 | % | | | 09/01/2025 | | | A2 | | $ | 3,400,000 | | | $ | 3,754,246 | |
KY Asset Liability Commission Federal Highway | | | 5.000 | | | | 09/01/2027 | | | A2 | | | 9,760,000 | | | | 11,499,134 | |
KY State Turnpike Economic Development Road Revenue | | | 5.000 | | | | 07/01/2029 | | | Aa3 | | | 5,165,000 | | | | 5,181,063 | |
KY State Turnpike Economic Development Road Revenue | | | 5.000 | | | | 07/01/2029 | | | Aa3 | | | 7,235,000 | | | | 7,573,743 | |
KY State Turnpike Economic Development Road Revenue | | | 5.000 | | | | 07/01/2029 | | | Aa3 | | | 4,000,000 | | | | 4,809,200 | |
KY State Turnpike Economic Development Road Revenue | | | 5.000 | | | | 07/01/2030 | | | Aa3 | | | 1,845,000 | | | | 1,850,775 | |
KY State Turnpike Economic Development Road Revenue | | | 5.000 | | | | 07/01/2030 | | | Aa3 | | | 1,465,000 | | | | 1,533,738 | |
KY State Turnpike Economic Development Road Revenue ** | | | 5.000 | | | | 07/01/2031 | | | Aa3 | | | 9,350,000 | | | | 9,770,376 | |
KY State Turnpike Economic Development Road Revenue | | | 5.000 | | | | 07/01/2032 | | | Aa3 | | | 1,315,000 | | | | 1,533,842 | |
KY State Turnpike Economic Development Road Revenue | | | 5.000 | | | | 07/01/2032 | | | Aa3 | | | 1,765,000 | | | | 2,177,639 | |
KY State Turnpike Economic Development Road Revenue | | | 5.000 | | | | 07/01/2032 | | | Aa3 | | | 8,755,000 | | | | 9,153,090 | |
KY State Turnpike Economic Development Road Revenue | | | 5.000 | | | | 07/01/2033 | | | Aa3 | | | 5,000,000 | | | | 5,441,500 | |
KY State Turnpike Economic Development Road Revenue | | | 5.000 | | | | 07/01/2034 | | | Aa3 | | | 1,120,000 | | | | 1,341,715 | |
KY State Turnpike Economic Development Road Revenue | | | 5.000 | | | | 07/01/2036 | | | Aa3 | | | 400,000 | | | | 486,488 | |
KY State Turnpike Economic Development Road Revenue | | | 5.000 | | | | 07/01/2037 | | | Aa3 | | | 500,000 | | | | 608,430 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 66,714,979 | |
| PUBLIC FACILITIES REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 5.92% of Net Assets | | | | | | | | | | | | | | | | | | |
KY Bond Development | | | 5.000 | | | | 09/01/2035 | | | A2 | | | 1,275,000 | | | | 1,563,622 | |
KY Bond Development | | | 5.000 | | | | 09/01/2036 | | | A2 | | | 2,000,000 | | | | 2,489,480 | |
KY Bond Development | | | 5.000 | | | | 09/01/2038 | | | A2 | | | 1,125,000 | | | | 1,393,403 | |
KY State Certificate of Participation | | | 4.000 | | | | 04/15/2030 | | | A1 | | | 1,500,000 | | | | 1,756,050 | |
KY State Certificate of Participation | | | 4.000 | | | | 04/15/2031 | | | A1 | | | 1,350,000 | | | | 1,574,721 | |
KY State Certificate of Participation | | | 5.000 | | | | 06/15/2034 | | | A1 | | | 1,640,000 | | | | 1,902,285 | |
KY State Certificate of Participation | | | 5.000 | | | | 04/15/2038 | | | A1 | | | 5,000,000 | | | | 6,129,500 | |
KY State Certificate of Participation | | | 5.000 | | | | 06/15/2038 | | | A1 | | | 7,535,000 | | | | 8,717,769 | |
Laurel County General Obligation | | | 4.000 | | | | 05/01/2031 | | | A2 | | | 1,295,000 | | | | 1,509,102 | |
Laurel County General Obligation | | | 4.000 | | | | 05/01/2034 | | | A2 | | | 1,440,000 | | | | 1,656,058 | |
Laurel County General Obligation | | | 4.000 | | | | 05/01/2035 | | | A2 | | | 1,495,000 | | | | 1,716,604 | |
Laurel County General Obligation | | | 4.000 | | | | 05/01/2036 | | | A2 | | | 1,555,000 | | | | 1,782,668 | |
Laurel County General Obligation | | | 4.000 | | | | 05/01/2037 | | | A2 | | | 1,620,000 | | | | 1,853,280 | |
Laurel County General Obligation | | | 4.000 | | | | 05/01/2038 | | | A2 | | | 1,680,000 | | | | 1,918,879 | |
Laurel County KY Judicial Center | | | 5.000 | | | | 03/01/2025 | | | A1 | | | 500,000 | | | | 575,785 | |
Lexington Fayette Urban County Government — Court Facilities | | | 4.000 | | | | 10/01/2030 | | | A1 | | | 785,000 | | | | 911,322 | |
Louisville & Jefferson County Visitors & Convention Commission | | | 4.000 | | | | 06/01/2032 | | | Aa3 | | | 2,725,000 | | | | 3,030,445 | |
Marshall County Library | | | 4.000 | | | | 06/01/2038 | | | Aa3 | | | 1,060,000 | | | | 1,217,325 | |
Nicholasville KY General Obligation | | | 3.500 | | | | 05/01/2030 | | | AA* | | | 1,480,000 | | | | 1,660,634 | |
Nicholasville KY General Obligtion | | | 5.000 | | | | 02/01/2029 | | | AA* | | | 1,160,000 | | | | 1,485,774 | |
River City, Inc. Parking Authority | | | 4.750 | | | | 06/01/2027 | | | Aa3 | | | 750,000 | | | | 815,798 | |
River City, Inc. Parking Authority | | | 4.750 | | | | 06/01/2028 | | | Aa3 | | | 940,000 | | | | 1,022,842 | |
River City, Inc. Parking Authority | | | 4.750 | | | | 06/01/2029 | | | Aa3 | | | 1,160,000 | | | | 1,261,999 | |
River City, Inc. Parking Authority | | | 4.750 | | | | 06/01/2029 | | | Aa3 | | | 980,000 | | | | 1,066,171 | |
River City, Inc. Parking Authority | | | 4.750 | | | | 06/01/2030 | | | Aa3 | | | 1,025,000 | | | | 1,115,128 | |
River City, Inc. Parking Authority | | | 4.750 | | | | 06/01/2031 | | | Aa3 | | | 1,270,000 | | | | 1,381,163 | |
River City, Inc. Parking Authority | | | 5.000 | | | | 06/01/2031 | | | Aa3 | | | 1,080,000 | | | | 1,179,695 | |
River City, Inc. Parking Authority | | | 5.000 | | | | 06/01/2032 | | | Aa3 | | | 1,130,000 | | | | 1,234,310 | |
River City, Inc. Parking Authority | | | 5.000 | | | | 06/01/2033 | | | Aa3 | | | 1,395,000 | | | | 1,523,772 | |
River City, Inc. Parking Authority | | | 3.000 | | | | 12/01/2036 | | | Aa3 | | | 835,000 | | | | 913,407 | |
River City, Inc. Parking Authority | | | 3.000 | | | | 12/01/2037 | | | Aa3 | | | 860,000 | | | | 936,987 | |
Warren County KY Downtown Economic Development Authority | | | 5.000 | | | | 06/01/2038 | | | AA-* | | | 2,345,000 | | | | 2,393,073 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 59,689,051 | |
| HOSPITAL AND HEALTHCARE REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 5.42% of Net Assets | | | | | | | | | | | | | | | | | | |
KY Development Corporation Hospital Facilities — St. Elizabeth | | | 4.000 | | | | 05/01/2032 | | | AA* | | | 1,810,000 | | | | 2,053,788 | |
KY Development Corporation Hospital Facilities — St. Elizabeth | | | 4.000 | | | | 05/01/2035 | | | AA* | | | 1,390,000 | | | | 1,576,510 | |
The accompanying footnotes are an integral part of the financial statements.
10
DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Kentucky Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
KY Development Corporation Hospital Facilities — St. Elizabeth | | | 4.000 | % | | | 05/01/2036 | | | AA* | | $ | 1,200,000 | | | $ | 1,354,980 | |
KY Development Corporation Hospital Facilities — St. Elizabeth | | | 5.000 | | | | 05/01/2039 | | | AA* | | | 7,185,000 | | | | 8,430,735 | |
Louisville & Jefferson County Norton Healthcare | | | 5.500 | | | | 10/01/2033 | | | A* | | | 2,000,000 | | | | 2,220,380 | |
Louisville & Jefferson County Norton Healthcare | | | 5.000 | | | | 10/01/2033 | | | A* | | | 6,810,000 | | | | 8,146,463 | |
Louisville & Jefferson County Norton Healthcare | | | 4.000 | | | | 10/01/2035 | | | A* | | | 3,850,000 | | | | 4,342,685 | |
Louisville & Jefferson County Norton Healthcare | | | 4.000 | | | | 10/01/2036 | | | A* | | | 7,005,000 | | | | 7,901,430 | |
Louisville & Jefferson County Norton Healthcare | | | 4.000 | | | | 10/01/2039 | | | A* | | | 4,500,000 | | | | 5,233,500 | |
Louisville & Jefferson County Norton Healthcare | | | 4.000 | | | | 10/01/2040 | | | A* | | | 2,000,000 | | | | 2,322,680 | |
Louisville & Jefferson County Norton Healthcare | | | 3.000 | | | | 10/01/2043 | | | A* | | | 2,000,000 | | | | 2,120,100 | |
Warren County KY Hospital | | | 5.000 | | | | 04/01/2032 | | | A+* | | | 800,000 | | | | 1,088,456 | |
Warren County KY Hospital | | | 5.000 | | | | 04/01/2028 | | | A+* | | | 6,225,000 | | | | 6,750,950 | |
Warren County KY Hospital | | | 5.000 | | | | 04/01/2035 | | | A+* | | | 1,025,000 | | | | 1,109,901 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 54,652,558 | |
| PREREFUNDED BONDS | | | | | | | | | | | | | | | | | | |
| 4.56% of Net Assets | | | | | | | | | | | | | | | | | | |
Bracken County KY Public Property | | | 5.000 | | | | 08/01/2029 | | | A1 | | | 840,000 | | | | 843,486 | |
Bracken County KY Public Property | | | 5.000 | | | | 08/01/2030 | | | A1 | | | 1,110,000 | | | | 1,114,595 | |
KY State Property & Building #100 | | | 5.000 | | | | 08/01/2027 | | | A1 | | | 610,000 | | | | 612,507 | |
KY State Property & Building #100 | | | 5.000 | | | | 08/01/2030 | | | A1 | | | 9,980,000 | | | | 10,021,018 | |
KY State Property & Building #100 | | | 5.000 | | | | 08/01/2031 | | | A1 | | | 5,100,000 | | | | 5,120,961 | |
Lexington Fayette Urban County Airport Board | | | 5.000 | | | | 07/01/2028 | | | Aa2 | | | 1,170,000 | | | | 1,226,956 | |
Lexington Fayette Urban County Airport Board | | | 5.000 | | | | 07/01/2030 | | | Aa2 | | | 1,250,000 | | | | 1,310,725 | |
Lexington Fayette Urban County Airport Board | | | 5.000 | | | | 07/01/2032 | | | Aa2 | | | 1,430,000 | | | | 1,499,612 | |
Lexington Fayette Urban County Airport Board | | | 5.000 | | | | 07/01/2033 | | | Aa2 | | | 1,520,000 | | | | 1,593,994 | |
Lexington Fayette Urban County Airport Board | | | 5.000 | | | | 07/01/2038 | | | Aa2 | | | 1,720,000 | | | | 1,803,730 | |
Lexington Fayette Urban County Government | | | 5.000 | | | | 01/01/2028 | | | Aa2 | | | 820,000 | | | | 952,938 | |
Lexington Fayette Urban County Government | | | 5.000 | | | | 01/01/2029 | | | Aa2 | | | 345,000 | | | | 400,931 | |
Lexington Fayette Urban County Government | | | 5.000 | | | | 01/01/2033 | | | Aa2 | | | 1,685,000 | | | | 1,958,172 | |
Louisville & Jefferson County Catholic Health Initiatives ** | | | 5.000 | | | | 12/01/2035 | | | NR | | | 11,290,000 | | | | 11,785,405 | |
Louisville & Jefferson County Metropolitan Sewer | | | 5.000 | | | | 05/15/2031 | | | Aa3 | | | 2,465,000 | | | | 2,686,801 | |
University of Louisville General Receipts | | | 5.000 | | | | 09/01/2030 | | | A+* | | | 440,000 | | | | 443,546 | |
University of Louisville General Receipts | | | 5.000 | | | | 09/01/2031 | | | A+* | | | 2,580,000 | | | | 2,599,789 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 45,975,166 | |
| REFUNDING BONDS | | | | | | | | | | | | | | | | | | |
| 2.84% of Net Assets | | | | | | | | | | | | | | | | | | |
KY State Property & Building #84 | | | 5.000 | | | | 08/01/2021 | | | A1 | | | 310,000 | | | | 311,209 | |
KY State Property & Building #84 | | | 5.000 | | | | 08/01/2022 | | | A1 | | | 18,000,000 | | | | 18,928,800 | |
KY State Property & Building #102 | | | 5.000 | | | | 05/01/2024 | | | Aa3 | | | 405,000 | | | | 430,475 | |
KY State Property & Building #108 | | | 5.000 | | | | 08/01/2025 | | | A1 | | | 2,690,000 | | | | 3,167,018 | |
KY State Property & Building #121 | | | 5.000 | | | | 02/01/2029 | | | A1 | | | 4,535,000 | | | | 5,799,857 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 28,637,359 | |
| AIRPORT REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| .74% of Net Assets | | | | | | | | | | | | | | | | | | |
Kenton County Airport | | | 5.000 | | | | 01/01/2029 | | | A1 | | | 240,000 | | | | 284,962 | |
Kenton County Airport | | | 5.000 | | | | 01/01/2034 | | | A1 | | | 275,000 | | | | 349,088 | |
Kenton County Airport | | | 5.000 | | | | 01/01/2035 | | | A1 | | | 300,000 | | | | 380,085 | |
Kenton County Airport | | | 5.000 | | | | 01/01/2036 | | | A1 | | | 965,000 | | | | 1,220,241 | |
Kenton County Airport | | | 5.000 | | | | 01/01/2037 | | | A1 | | | 670,000 | | | | 846,666 | |
Kenton County Airport | | | 5.000 | | | | 01/01/2038 | | | A1 | | | 500,000 | | | | 630,210 | |
Kenton County Airport | | | 5.000 | | | | 01/01/2039 | | | A1 | | | 500,000 | | | | 629,395 | |
Kenton County Airport | | | 5.000 | | | | 01/01/2044 | | | A1 | | | 2,500,000 | | | | 3,116,700 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 7,457,347 | |
| AD VALOREM PROPERTY BONDS | | | | | | | | | | | | | | | | | | |
| .14% of Net Assets | | | | | | | | | | | | | | | | | | |
Warren County General Obligation | | | 4.000 | | | | 06/01/2035 | | | Aa1 | | | 1,175,000 | | | | 1,361,719 | |
| | | | | | | | | | | | | | | | | | |
The accompanying footnotes are an integral part of the financial statements.
11
DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Kentucky Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
| STATE AND LOCAL MORTGAGE/HOUSING REVENUE BONDS | | | | | | | | | | | | | | | |
| .01% of Net Assets | | | | | | | | | | | | | | | | | | |
Greater KY Housing Assistance Corporation-Chenowith Woods | | | 6.100 | % | | | 01/01/2024 | | | Baa2 | | $ | 140,000 | | | $ | 140,517 | |
| | | | | | | | | | | | | | | | | | |
Total Investments (cost $922,550,104) (See (a) below for further explanation) 98.40% of Net Assets | | | | | | $ | 992,237,829 | |
| | | | | | | | | | | | | | | | | | |
Other assets in excess of liabilities 1.60% | | | | | | | | | | | | | | | | | 16,141,223 | |
| | | | | | | | | | | | | | | | | | |
Net Assets 100% | | | | | | | | | | | | | | | | $ | 1,008,379,052 | |
| | | | | | | | | | | | | | | | | | |
| | # | | Ratings by Moody’s Investors Service unless noted otherwise. |
| | | | Bond ratings are unaudited and not covered by Report of Independent Registered Public Accounting Firm. |
| | | | 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 |
| | ** | | Security is segregated — see footnote 7 |
| (a) | | Cost for federal income tax purposes is $922,550,104 and net unrealized appreciation of investments is as follows: |
| | | | | | |
| | Unrealized appreciation | | $ | 69,753,541 | |
| | Unrealized depreciation | | | (65,816 | ) |
| | | | | | |
| | Net unrealized appreciation | | $ | 69,687,725 | |
| | | | | | |
Other Information
The following is a summary of the inputs used, as of June 30, 2021, 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 | | | 992,237,829 | |
Level 3 | | Significant Unobservable Inputs | | | — | |
| | | | | | |
| | | | $ | 992,237,829 | |
| | | | | | |
The accompanying footnotes are an integral part of the financial statements.
12
KENTUCKY TAX-FREE INCOME SERIES
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2021
| | | | | | | | |
ASSETS: | | | | | | | | |
Investments in securities, at fair value (Cost: $922,550,104) | | | | | | $ | 992,237,829 | |
Cash | | | | | | | 9,846,422 | |
Receivable for fund shares sold | | | | | | | 135,337 | |
Interest receivable | | | | | | | 10,788,946 | |
| | | | | | | | |
Total assets | | | | | | | 1,013,008,534 | |
LIABILITIES: | | | | | | | | |
Payable for: | | | | | | | | |
Distributions to shareholders | | | 2,733,716 | | | | | |
Fund shares redeemed | | | 1,176,270 | | | | | |
Investment advisory fee | | | 309,477 | | | | | |
Transfer agent fee | | | 99,679 | | | | | |
Professional fees | | | 176,783 | | | | | |
Trustees fees | | | 42,183 | | | | | |
Custodian expense | | | 10,440 | | | | | |
Accrued expenses | | | 80,934 | | | | | |
| | | | | | | | |
Total liabilities | | | | | | | 4,629,482 | |
| | | | | | | | |
NET ASSETS: | | | | | | | | |
Capital | | | | | | | 938,654,319 | |
Total distributable earnings | | | | | | | 69,724,733 | |
| | | | | | | | |
Net assets at value | | | | | | $ | 1,008,379,052 | |
| | | | | | | | |
NET ASSET VALUE, offering price and redemption price per share
(125,713,677 shares outstanding; unlimited number of shares authorized; no par value) | | | | | | $ | 8.02 | |
| | | | | | | | |
STATEMENT OF OPERATIONS
For the year ended June 30, 2021
| | | | |
Net investment income: | | | | |
Interest income | | $ | 30,050,955 | |
| | | | |
Expenses: | |
Investment advisory fee | | | 3,735,127 | |
Transfer agent fee | | | 1,200,481 | |
Professional fees | | | 223,062 | |
Trustees fees | | | 103,419 | |
Custodian expense | | | 99,020 | |
Pricing fees | | | 25,550 | |
Registration expense | | | 4,272 | |
Compliance fees | | | 7,300 | |
Other expenses | | | 132,001 | |
| | | | |
Total expenses | | | 5,530,232 | |
Custodian expense reduction (Note 7) | | | (412 | ) |
| | | | |
Net expenses | | | 5,529,820 | |
| | | | |
Net investment income | | | 24,521,135 | |
| | | | |
Realized and unrealized gain on investments: | | | | |
Net realized gain | | | 386,956 | |
Net change in unrealized appreciation/depreciation | | | 20,472,215 | |
| | | | |
Net realized and unrealized gain on investments | | | 20,859,171 | |
| | | | |
Net increase in net assets resulting from operations | | $ | 45,380,306 | |
| | | | |
The accompanying footnotes are an integral part of the financial statements.
13
KENTUCKY TAX-FREE INCOME SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended June 30, 2021 and 2020
| | | | | | | | |
| | | 2021 | | | 2020 | |
Operations: | | | | | | | | |
Net investment income | | $ | 24,521,135 | | | $ | 25,818,863 | |
Net realized gain on investments | | | 386,956 | | | | 360,854 | |
Net change in unrealized appreciation/depreciation | | | 20,472,215 | | | | 2,399,952 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 45,380,306 | | | | 28,579,669 | |
Total distributions (Note 6) | | | (25,026,594 | ) | | | (25,818,863 | ) |
Net Fund share transactions (Note 4) | | | 14,136,385 | | | | 1,864,092 | |
| | | | | | | | |
Total increase | | | 34,490,097 | | | | 4,624,898 | |
Net assets: | | | | | | | | |
Beginning of year | | | 973,888,955 | | | | 969,264,057 | |
| | | | | | | | |
End of year | | $ | 1,008,379,052 | | | $ | 973,888,955 | |
| | | | | | | | |
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Selected data for a share outstanding: | | For the years ended June 30, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
Net asset value, beginning of year | | | $7.86 | | | | $7.83 | | | | $7.60 | | | | $7.76 | | | | $8.06 | |
| | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.20 | | | | 0.21 | | | | 0.22 | | | | 0.23 | | | | 0.24 | |
Net gains/(losses) on investments | | | 0.16 | | | | 0.03 | | | | 0.24 | | | | (0.16 | ) | | | (0.30 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.36 | | | | 0.24 | | | | 0.46 | | | | 0.07 | | | | (0.06 | ) |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income | | | (0.20 | ) | | | (0.21 | ) | | | (0.22 | ) | | | (0.23 | ) | | | (0.24 | ) |
Distributions from capital gains | | | 0.00 | (b) | | | 0.00 | | | | (0.01 | ) | | | 0.00 | (b) | | | 0.00 | (b) |
| | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.20 | ) | | | (0.21 | ) | | | (0.23 | ) | | | (0.23 | ) | | | (0.24 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, end of year | | | $8.02 | | | | $7.86 | | | | $7.83 | | | | $7.60 | | | | $7.76 | |
| | | | | | | | | | | | | | | | | | | | |
Total return | | | 4.63% | | | | 3.08% | | | | 6.22% | | | | 0.93% | | | | (0.70)% | |
Net assets, end of year (in thousands) | | | $1,008,379 | | | | $973,889 | | | | $969,264 | | | | $954,333 | | | | $990,213 | |
Ratio of net expenses to average net assets (a) | | | 0.56% | | | | 0.56% | | | | 0.57% | | | | 0.56% | | | | 0.55% | |
Ratio of gross expenses to average net assets | | | 0.56% | | | | 0.56% | | | | 0.57% | | | | 0.56% | | | | 0.55% | |
Ratio of net investment income to average net assets | | | 2.46% | | | | 2.66% | | | | 2.88% | | | | 2.98% | | | | 3.05% | |
Portfolio turnover | | | 5.92% | | | | 4.59% | | | | 10.23% | | | | 16.81% | | | | 10.44% | |
| (a) | | Percentages are after custodian expense reduction for which no recovery will be sought. |
| (b) | | Rounds to less than $0.01. |
The accompanying footnotes are an integral part of the financial statements.
14
DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE SHORT-TO-MEDIUM SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Kentucky Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS | | | | | | | | | | | | | | | | | | |
| 24.00% of Net Assets | | | | | | | | | | | | | | | | | | |
KY State Property & Building #106 | | | 5.000 | % | | | 10/01/2021 | | | A1 | | $ | 750,000 | | | $ | 758,723 | |
KY State Property & Building #106 | | | 5.000 | | | | 10/01/2024 | | | A1 | | | 750,000 | | | | 828,105 | |
KY State Property & Building #106 | | | 5.000 | | | | 10/01/2025 | | | A1 | | | 2,365,000 | | | | 2,609,848 | |
KY State Property & Building #106 | | | 5.000 | | | | 10/01/2026 | | | A1 | | | 1,000,000 | | | | 1,102,340 | |
KY State Property & Building #108 | | | 5.000 | | | | 08/01/2023 | | | A1 | | | 875,000 | | | | 960,068 | |
KY State Property & Building #108 | | | 5.000 | | | | 08/01/2028 | | | A1 | | | 755,000 | | | | 885,215 | |
KY State Property & Building #110 | | | 5.000 | | | | 08/01/2023 | | | A1 | | | 1,750,000 | | | | 1,920,135 | |
Somerset KY | | | 5.000 | | | | 06/01/2028 | | | A2 | | | 605,000 | | | | 765,010 | |
Somerset KY | | | 5.000 | | | | 06/01/2029 | | | A2 | | | 380,000 | | | | 490,766 | |
Somerset KY | | | 4.000 | | | | 06/01/2030 | | | A2 | | | 415,000 | | | | 502,183 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 10,822,393 | |
| SCHOOL IMPROVEMENT BONDS | | | | | | | | | | | | | | | | | | |
| 23.04% of Net Assets | | | | | | | | | | | | | | | | | | |
Barren County KY School District Finance Corporation ** | | | 5.000 | | | | 08/01/2022 | | | A1 | | | 930,000 | | | | 976,937 | |
Barren County KY School District Finance Corporation | | | 5.000 | | | | 08/01/2023 | | | A1 | | | 500,000 | | | | 548,060 | |
Bowling Green KY Independent School District Finance Corporation | | | 5.000 | | | | 08/01/2027 | | | A1 | | | 695,000 | | | | 838,267 | |
Bullitt County KY School District Finance Corporation | | | 5.000 | | | | 09/01/2022 | | | A1 | | | 300,000 | | | | 316,482 | |
Fayette County KY School District Finance Corporation | | | 5.000 | | | | 06/01/2023 | | | Aa3 | | | 500,000 | | | | 545,550 | |
Fayette County KY School District Finance Corporation ** | | | 5.000 | | | | 08/01/2023 | | | Aa3 | | | 1,000,000 | | | | 1,095,020 | |
Hardin County KY School District Finance Corporation | | | 5.000 | | | | 03/01/2023 | | | A1 | | | 770,000 | | | | 828,197 | |
Jefferson County KY School District Finance Corporation | | | 4.000 | | | | 12/01/2023 | | | Aa3 | | | 500,000 | | | | 542,535 | |
Jessamine County KY School District Finance Corporation | | | 5.000 | | | | 02/01/2023 | | | A1 | | | 575,000 | | | | 617,441 | |
Laurel County KY School District Finance Corporation | | | 4.000 | | | | 06/01/2022 | | | A1 | | | 890,000 | | | | 919,877 | |
Laurel County KY School District Finance Corporation | | | 4.000 | | | | 06/01/2024 | | | A1 | | | 465,000 | | | | 511,965 | |
Pike County KY School District Finance Corporation | | | 5.000 | | | | 08/01/2024 | | | A1 | | | 250,000 | | | | 283,665 | |
Pike County KY School District Finance Corporation | | | 5.000 | | | | 02/01/2025 | | | A1 | | | 900,000 | | | | 1,038,888 | |
Pike County KY School District Finance Corporation | | | 5.000 | | | | 08/01/2025 | | | A1 | | | 200,000 | | | | 234,758 | |
Pike County KY School District Finance Corporation | | | 4.000 | | | | 02/01/2028 | | | A1 | | | 295,000 | | | | 336,421 | |
Warren County KY School District Finance Corporation | | | 4.000 | | | | 06/01/2022 | | | A1 | | | 725,000 | | | | 749,266 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 10,383,329 | |
| PUBLIC FACILITIES REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 16.45% of Net Assets | | | | | | | | | | | | | | | | | | |
KY State Certificate of Participation | | | 4.000 | | | | 06/15/2023 | | | A1 | | | 940,000 | | | | 1,004,607 | |
KY State Certificate of Participation | | | 4.000 | | | | 06/15/2024 | | | A1 | | | 300,000 | | | | 330,516 | |
KY State Property & Building #109 ** | | | 5.000 | | | | 10/01/2022 | | | A1 | | | 1,000,000 | | | | 1,059,890 | |
Laurel County KY Justice Center | | | 5.000 | | | | 03/01/2023 | | | A1 | | | 600,000 | | | | 643,992 | |
Lexington Fayette Urban County Government — Court Facilities | | | 5.000 | | | | 10/01/2024 | | | A1 | | | 700,000 | | | | 796,628 | |
Livingston County KY Public Properties | | | 5.000 | | | | 08/01/2022 | | | A1 | | | 375,000 | | | | 393,926 | |
Livingston County KY Public Properties | | | 5.000 | | | | 08/01/2024 | | | A1 | | | 555,000 | | | | 628,460 | |
River City, Inc. Parking Authority | | | 5.000 | | | | 12/01/2024 | | | Aa3 | | | 340,000 | | | | 392,057 | |
Taylor County KY Public Courthouse | | | 4.000 | | | | 09/01/2027 | | | A1 | | | 700,000 | | | | 799,078 | |
Warren County KY Justice Center Expansion Corporation ** | | | 5.000 | | | | 09/01/2023 | | | A1 | | | 1,250,000 | | | | 1,368,925 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 7,418,079 | |
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS | | | | | | | | | | | |
| 10.10% of Net Assets | | | | | | | | | | | | | | | | | | |
KY Bond Development Corporation Educational Facilities Centre College | | | 4.000 | | | | 06/01/2030 | | | A3 | | | 170,000 | | | | 206,939 | |
University of Kentucky General Receipts | | | 4.000 | | | | 04/01/2028 | | | Aa2 | | | 750,000 | | | | 822,105 | |
University of Louisville | | | 5.000 | | | | 03/01/2024 | | | A1 | | | 350,000 | | | | 390,226 | |
University of Louisville ** | | | 5.000 | | | | 03/01/2024 | | | A1 | | | 2,000,000 | | | | 2,229,860 | |
University of Louisville | | | 4.000 | | | | 09/01/2030 | | | A1 | | | 745,000 | | | | 905,562 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 4,554,692 | |
| TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 9.96% of Net Assets | | | | | | | | | | | | | | | | | | |
KY Asset Liability Commission Federal Highway | | | 5.000 | | | | 09/01/2024 | | | A2 | | | 500,000 | | | | 571,170 | |
KY Asset Liability Commission Federal Highway | | | 5.000 | | | | 09/01/2026 | | | A2 | | | 565,000 | | | | 644,846 | |
The accompanying footnotes are an integral part of the financial statements.
15
DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE SHORT-TO-MEDIUM SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Kentucky Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
KY Asset Liability Project Notes | | | 4.000 | % | | | 09/01/2023 | | | A2 | | $ | 250,000 | | | $ | 269,760 | |
KY State Turnpike Authority Economic Development | | | 5.000 | | | | 07/01/2024 | | | Aa3 | | | 1,175,000 | | | | 1,333,143 | |
KY State Turnpike Authority Economic Development | | | 5.000 | | | | 07/01/2026 | | | Aa3 | | | 1,385,000 | | | | 1,672,734 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 4,491,653 | |
| MUNICIPAL UTILITY REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 5.69% of Net Assets | | | | | | | | | | | | | | | | | | |
Campbell & Kenton Counties Sanitation District #1 | | | 4.000 | | | | 08/01/2031 | | | Aa2 | | | 1,000,000 | | | | 1,158,630 | |
Frankfort Electric & Water | | | 4.000 | | | | 12/01/2023 | | | AA* | | | 440,000 | | | | 476,987 | |
KY Rural Water Finance Corporation | | | 4.500 | | | | 08/01/2021 | | | A+ | | | 35,000 | | | | 35,098 | |
Northern KY Water | | | 5.000 | | | | 02/01/2026 | | | A+ | | | 815,000 | | | | 894,780 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 2,565,495 | |
| REFUNDING BONDS | | | | | | | | | | | | | | | | | | |
| 4.22% of Net Assets | | | | | | | | | | | | | | | | | | |
KY State Property & Building #104 ** | | | 5.000 | | | | 11/01/2021 | | | A2 | | | 1,000,000 | | | | 1,015,530 | |
KY State Property & Building #108 | | | 5.000 | | | | 08/01/2022 | | | A1 | | | 200,000 | | | | 210,342 | |
KY State Property & Building #112 | | | 5.000 | | | | 11/01/2026 | | | A1 | | | 555,000 | | | | 677,172 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,903,044 | |
| PREREFUNDED BONDS | | | | | | | | | | | | | | | | | | |
| 2.79% of Net Assets | | | | | | | | | | | | | | | | | | |
KY Infrastructure Authority Wastewater & Drinking Water | | | 5.000 | | | | 02/01/2025 | | | Aaa | | | 175,000 | | | | 179,960 | |
KY Turnpike Economic Development Road Revenue | | | 5.000 | | | | 07/01/2023 | | | Aa3 | | | 600,000 | | | | 628,836 | |
KY Turnpike Economic Development Road Revenue | | | 5.000 | | | | 07/01/2024 | | | Aa3 | | | 85,000 | | | | 89,085 | |
Warren County Hospital | | | 5.000 | | | | 04/01/2023 | | | A+* | | | 340,000 | | | | 360,563 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,258,444 | |
| AIRPORT REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 1.33% of Net Assets | | | | | | | | | | | | | | | | | | |
Kenton County Airport | | | 5.000 | | | | 01/01/2026 | | | A1 | | | 500,000 | | | | 599,070 | |
| | | | | | | | | | | | | | | | | | |
Total Investments (cost $42,060,463) (See (a) below for further explanation) 97.58% of Net Assets | | | $ | 43,996,199 | |
| | | | | | | | | | | | | | | | | | |
Other assets in excess of liabilities 2.42% | | | | | | | | | | | | | | | | | 1,092,431 | |
| | | | | | | | | | | | | | | | | | |
Net Assets 100% | | | | | | | | | | | | | | | | $ | 45,088,630 | |
| | | | | | | | | | | | | | | | | | |
| | # | | Ratings by Moody’s Investors Service unless noted otherwise. |
| | | | Bond ratings are unaudited and not covered by Report of Independent Registered Public Accounting Firm. |
| | | | 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 |
| | ** | | Security is segregated — see footnote 7 |
| (a) | | Cost for federal income tax purposes is $42,060,463 and net unrealized appreciation of investments is as follows: |
| | | | | | |
| | Unrealized appreciation | | $ | 1,935,736 | |
| | Unrealized depreciation | | | — | |
| | | | | | |
| | Net unrealized appreciation | | $ | 1,935,736 | |
| | | | | | |
Other Information
The following is a summary of the inputs used, as of June 30, 2021, 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 | | | 43,996,199 | |
Level 3 | | Significant Unobservable Inputs | | | — | |
| | | | | | |
| | | | $ | 43,996,199 | |
| | | | | | |
The accompanying footnotes are an integral part of the financial statements.
16
KENTUCKY TAX-FREE SHORT-TO-MEDIUM SERIES
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2021
| | | | | | | | |
ASSETS: | | | | | | | | |
Investments in securities, at fair value (Cost: $42,060,463) | | | | | | $ | 43,996,199 | |
Cash | | | | | | | 611,066 | |
Interest receivable | | | | | | | 578,928 | |
| | | | | | | | |
Total assets | | | | | | | 45,186,193 | |
LIABILITIES: | | | | | | | | |
Payable for: | | | | | | | | |
Distributions to shareholders | | | 27,073 | | | | | |
Fund shares redeemed | | | 829 | | | | | |
Investment advisory fee | | | 16,547 | | | | | |
Transfer agent fee | | | 5,945 | | | | | |
Audit fees | | | 9,439 | | | | | |
Professional fees | | | 6,655 | | | | | |
Custodian expense | | | 5,086 | | | | | |
Trustees fees | | | 2,470 | | | | | |
Accrued expenses | | | 23,519 | | | | | |
| | | | | | | | |
Total liabilities | | | | | | | 97,563 | |
| | | | | | | | |
NET ASSETS: | | | | | | | | |
Capital | | | | | | | 43,243,835 | |
Total distributable earnings | | | | | | | 1,844,795 | |
| | | | | | | | |
Net assets at value | | | | | | $ | 45,088,630 | |
| | | | | | | | |
NET ASSET VALUE, offering price and redemption price per share
(8,326,182 shares outstanding; unlimited number of shares authorized; no par value) | | | | | | $ | 5.42 | |
| | | | | | | | |
STATEMENT OF OPERATIONS
For the year ended June 30, 2021
| | | | |
Net investment income: | | | | |
Interest income | | $ | 1,111,896 | |
| | | | |
Expenses: | | | | |
Investment advisory fee | | | 236,165 | |
Transfer agent fee | | | 62,680 | |
Registration expense | | | 11,729 | |
Custodian expense | | | 11,729 | |
Professional fees | | | 10,860 | |
Compliance fees | | | 7,300 | |
Pricing fees | | | 7,300 | |
Trustees fees | | | 4,978 | |
Other expenses | | | 15,255 | |
| | | | |
Total expenses | | | 367,996 | |
Fees waived by Adviser (Note 2) | | | (37,445 | ) |
Custodian expense reduction (Note 7) | | | (49 | ) |
| | | | |
Net expenses | | | 330,502 | |
| | | | |
Net investment income | | | 781,394 | |
| | | | |
Realized and unrealized gain on investments: | | | | |
Net realized gain | | | 23,245 | |
Net change in unrealized appreciation/depreciation | | | (6,514 | ) |
| | | | |
Net realized and unrealized gain on investments | | | 16,731 | |
| | | | |
Net increase in net assets resulting from operations | | $ | 798,125 | |
| | | | |
The accompanying footnotes are an integral part of the financial statements.
17
KENTUCKY TAX-FREE SHORT-TO-MEDIUM SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended June 30, 2021 and 2020
| | | | | | | | |
| | | 2021 | | | 2020 | |
Operations: | | | | | | | | |
Net investment income | | $ | 781,394 | | | $ | 865,554 | |
Net realized gain on investments | | | 23,245 | | | | 146,952 | |
Net change in unrealized appreciation/depreciation | | | (6,514 | ) | | | 399,130 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 798,125 | | | | 1,411,636 | |
Total distributions (Note 6) | | | (781,394 | ) | | | (865,554 | ) |
Net Fund share transactions (Note 4) | | | (2,316,932 | ) | | | (8,575,765 | ) |
| | | | | | | | |
Total decrease | | | (2,300,201 | ) | | | (8,029,683 | ) |
Net assets: | | | | | | | | |
Beginning of year | | | 47,388,831 | | | | 55,418,514 | |
| | | | | | | | |
End of year | | $ | 45,088,630 | | | $ | 47,388,831 | |
| | | | | | | | |
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Selected data for a share outstanding: | | For the years ended June 30, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
Net asset value, beginning of year | | | $5.41 | | | | $5.36 | | | | $5.22 | | | | $5.33 | | | | $5.45 | |
| | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.09 | | | | 0.09 | | | | 0.09 | | | | 0.09 | | | | 0.10 | |
Net gains/(losses) on investments | | | 0.01 | (b) | | | 0.05 | | | | 0.14 | | | | (0.11 | ) | | | (0.12 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.10 | | | | 0.14 | | | | 0.23 | | | | (0.02 | ) | | | (0.02 | ) |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income | | | (0.09 | ) | | | (0.09 | ) | | | (0.09 | ) | | | (0.09 | ) | | | (0.10 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, end of year | | | $5.42 | | | | $5.41 | | | | $5.36 | | | | $5.22 | | | | $5.33 | |
| | | | | | | | | | | | | | | | | | | | |
Total return | | | 1.86% | | | | 2.66% | | | | 4.56% | | | | (0.32)% | | | | (0.44)% | |
Net assets, end of year (in thousands) | | | $45,089 | | | | $47,389 | | | | $55,419 | | | | $62,646 | | | | $72,172 | |
Ratio of net expenses to average net assets (a) | | | 0.70% | | | | 0.70% | | | | 0.70% | | | | 0.70% | | | | 0.71% | |
Ratio of gross expenses to average net assets | | | 0.78% | | | | 0.78% | | | | 0.77% | | | | 0.75% | | | | 0.73% | |
Ratio of net investment income to average net assets | | | 1.66% | | | | 1.70% | | | | 1.81% | | | | 1.76% | | | | 1.79% | |
Portfolio turnover | | | 10.00% | | | | 2.75% | | | | 4.88% | | | | 4.69% | | | | 14.84% | |
| (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) | | Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the Fund’s statement of operations due to share transactions for the period. |
The accompanying footnotes are an integral part of the financial statements.
18
DUPREE MUTUAL FUNDS — MISSISSIPPI TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Mississippi Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS | |
| 28.42% of Net Assets | | | | | | | | | | | | | | | | | | |
Jackson State University Educational Building | | | 5.000 | % | | | 03/01/2034 | | | Aa2 | | $ | 440,000 | | | $ | 506,515 | |
Mississippi State University Educational Building | | | 5.000 | | | | 11/01/2032 | | | Aa2 | | | 125,000 | | | | 147,329 | |
MS Development Bank Special Obligation Gulf Coast Community Project ** | | | 4.000 | | | | 12/01/2034 | | | AA-* | | | 300,000 | | | | 343,605 | |
MS Development Bank Special Obligation Itawamba Community College | | | 4.000 | | | | 10/01/2040 | | | AA-* | | | 350,000 | | | | 411,438 | |
MS Development Bank Special Obligation Northwest MS Community College | | | 4.000 | | | | 03/01/2039 | | | AA-* | | | 225,000 | | | | 264,170 | |
MS Development Bank Special Obligation Pearl River Community College | | | 5.000 | | | | 10/01/2033 | | | AA-* | | | 125,000 | | | | 156,714 | |
MS State University | | | 4.000 | | | | 08/01/2033 | | | Aa2 | | | 140,000 | | | | 162,226 | |
MS State University Educational Building Corporation Revenue | | | 5.000 | | | | 08/01/2033 | | | Aa2 | | | 225,000 | | | | 278,161 | |
MS State University Educational Building Corporation Revenue | | | 4.000 | | | | 08/01/2036 | | | Aa2 | | | 250,000 | | | | 291,283 | |
University of Mississippi Educational Building Corporation | | | 5.000 | | | | 10/01/2031 | | | Aa2 | | | 205,000 | | | | 248,376 | |
University Southern MS Educational Building Corporation | | | 5.000 | | | | 09/01/2033 | | | Aa2 | | | 360,000 | | | | 433,577 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 3,243,394 | |
| PREREFUNDED BONDS | | | | | | | | | | | | | | | | | | |
| 26.39% of Net Assets | | | | | | | | | | | | | | | | | | |
MS Development Bank Desoto County Highway | | | 5.000 | | | | 01/01/2030 | | | Aa3 | | | 100,000 | | | | 107,183 | |
MS Development Bank Special Obligation Brandon Public Improvement | | | 5.000 | | | | 11/01/2033 | | | Aa3 | | | 150,000 | | | | 173,330 | |
MS Development Bank Special Obligation Canton ** | | | 5.750 | | | | 10/01/2031 | | | A2 | | | 370,000 | | | | 375,206 | |
MS Development Bank Special Obligation Hattiesburg Water & Sewer | | | 4.750 | | | | 12/01/2038 | | | AA* | | | 700,000 | | | | 776,110 | |
MS Development Bank Special Obligation Jackson Schools | | | 5.000 | | | | 04/01/2028 | | | NR | | | 125,000 | | | | 135,424 | |
MS Development Bank Special Obligation Marshall County | | | 5.000 | | | | 01/01/2028 | | | Aa3 | | | 50,000 | | | | 51,216 | |
MS Development Bank Special Obligation West Jackson County Utility District | | | 5.000 | | | | 12/01/2033 | | | A* | | | 50,000 | | | | 55,713 | |
MS State Capital Improvement Projects | | | 5.000 | | | | 10/01/2036 | | | Aa2 | | | 180,000 | | | | 182,214 | |
MS State University Educational Building Corporation Revenue | | | 5.000 | | | | 08/01/2036 | | | Aa2 | | | 175,000 | | | | 175,740 | |
MS State University Educational Building Corporation Revenue ** | | | 5.250 | | | | 08/01/2038 | | | Aa2 | | | 300,000 | | | | 331,323 | |
Southern Mississippi Educational Building Corporation | | | 5.000 | | | | 03/01/2038 | | | Aa2 | | | 600,000 | | | | 648,186 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 3,011,645 | |
| TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 7.77% of Net Assets | | | | | | | | | | | | | | | | | | |
MS Development Bank Special Obligation Highway Construction | | | 5.000 | | | | 01/01/2025 | | | Aa3 | | | 200,000 | | | | 231,060 | |
MS Development Bank Special Obligation Highway Construction | | | 5.000 | | | | 01/01/2029 | | | Aa3 | | | 300,000 | | | | 366,072 | |
MS Development Bank Special Obligation Highway Construction | | | 4.000 | | | | 01/01/2030 | | | Aa3 | | | 175,000 | | | | 203,551 | |
MS Development Bank Special Obligation Marshall County | | | 5.000 | | | | 01/01/2030 | | | Aa3 | | | 75,000 | | | | 86,084 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 886,767 | |
| MUNICIPAL UTILITY REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 6.92% of Net Assets | | | | | | | | | | | | | | | | | | |
MS Development Bank Special Obligation Jackson Water & Sewer | | | 6.875 | | | | 12/01/2040 | | | AA* | | | 150,000 | | | | 171,283 | |
MS Development Bank Special Obligation Meridian Water & Sewer | | | 4.000 | | | | 07/01/2036 | | | AA* | | | 215,000 | | | | 258,703 | |
MS Development Bank Special Obligation Meridian Water & Sewer | | | 4.000 | | | | 07/01/2038 | | | AA* | | | 150,000 | | | | 179,795 | |
MS Development Bank Special Obligation Tupelo | | | 5.000 | | | | 05/01/2033 | | | Aa2 | | | 150,000 | | | | 179,354 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 789,135 | |
| AD VALOREM PROPERTY BONDS | | | | | | | | | | | | | | | | | | |
| 6.40% of Net Assets | | | | | | | | | | | | | | | | | | |
MS Development Bank Special Obligation Hattiesburg Project | | | 4.000 | | | | 02/01/2040 | | | Aa3 | | | 250,000 | | | | 296,193 | |
MS Development Bank Special Obligation Hinds County Schools | | | 5.000 | | | | 03/01/2043 | | | Aa3 | | | 350,000 | | | | 433,730 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 729,923 | |
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS | | | | | | | | | | | | | | | | | | |
| 5.85% of Net Assets | | | | | | | | | | | | | | | | | | |
Mississippi State | | | 3.000 | | | | 06/01/2038 | | | Aa2 | | | 100,000 | | | | 110,978 | |
Mississippi State Gaming Tax Revenue | | | 5.000 | | | | 10/15/2035 | | | A3 | | | 125,000 | | | | 145,151 | |
Mississippi State Gaming Tax Revenue | | | 5.000 | | | | 10/15/2037 | | | A-* | | | 125,000 | | | | 154,816 | |
MS Development Bank Special Obligation Jackson Sales Tax Revenue | | | 5.000 | | | | 09/01/2029 | | | A* | | | 200,000 | | | | 256,818 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 667,763 | |
The accompanying footnotes are an integral part of the financial statements.
19
DUPREE MUTUAL FUNDS — MISSISSIPPI TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Mississippi Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
| PUBLIC FACILITIES REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 5.54% of Net Assets | | | | | | | | | | | | | | | | | | |
MS Development Bank Special Obligation Brandon Public Improvement ** | | | 4.000 | % | | | 08/01/2033 | | | AA* | | $ | 300,000 | | | $ | 345,162 | |
MS Development Bank Special Obligation Brandon Public Improvement | | | 4.000 | | | | 08/01/2035 | | | AA* | | | 150,000 | | | | 171,459 | |
MS Development Bank Special Obligation Hinds County | | | 4.000 | | | | 11/01/2035 | | | Aa3 | | | 100,000 | | | | 115,121 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 631,742 | |
| REFUNDING BONDS | | | | | | | | | | | | | | | | | | |
| 4.60% of Net Assets | | | | | | | | | | | | | | | | | | |
MS State Refunding | | | 5.000 | | | | 10/01/2033 | | | Aa2 | | | 150,000 | | | | 186,792 | |
MS State Refunding ** | | | 4.000 | | | | 10/01/2036 | | | Aa2 | | | 290,000 | | | | 338,389 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 525,181 | |
| SCHOOL IMPROVEMENT BONDS | | | | | | | | | | | | | | | | | | |
| 3.94% of Net Assets | | | | | | | | | | | | | | | | | | |
MS Development Bank Special Obligation Canton School District | | | 5.000 | | | | 12/01/2033 | | | A1 | | | 100,000 | | | | 117,915 | |
MS Development Bank Special Obligation Jackson Schools | | | 5.000 | | | | 04/01/2028 | | | A+* | | | 80,000 | | | | 85,923 | |
MS Development Bank Special Obligation Rankin School District | | | 4.000 | | | | 06/01/2038 | | | AA* | | | 100,000 | | | | 115,891 | |
MS Development Bank Special Obligation Vicksburg Warren School District | | | 5.500 | | | | 03/01/2038 | | | AA* | | | 100,000 | | | | 130,053 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 449,782 | |
| HOSPITAL AND HEALTHCARE REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 1.67% of Net Assets | | | | | | | | | | | | | | | | | | |
Medical Center Educational Building Corporation MS Revenue | | | 5.500 | | | | 12/01/2023 | | | Aa2 | | | 60,000 | | | | 64,410 | |
Medical Center Educational Building Corporation MS Revenue | | | 5.000 | | | | 06/01/2035 | | | Aa2 | | | 100,000 | | | | 126,639 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 191,049 | |
| | | | | | | | | | | | | | | | | | |
Total Investments (cost $10,393,932) (See (a) below for further explanation) 97.50% of Net Assets | | | | | | | | | $ | 11,126,381 | |
| | | | | | | | | | | | | | | | | | |
Other assets in excess of liabilities 2.50% | | | | | | | | | | | | | | | | | 285,269 | |
| | | | | | | | | | | | | | | | | | |
Net Assets 100% | | | | | | | | | | | | | | | | $ | 11,411,650 | |
| | | | | | | | | | | | | | | | | | |
| | # | | Ratings by Moody’s Investors Service unless noted otherwise. |
| | | | Bond ratings are unaudited and not covered by Report of Independent Registered Public Accounting Firm. |
| | | | 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 |
| | ** | | Security is segregated — see footnote 7 |
| (a) | | Cost for federal income tax purposes is $10,393,932 and net unrealized appreciation of investments is as follows: |
| | | | | | |
| | Unrealized appreciation | | $ | 732,708 | |
| | Unrealized depreciation | | | (259 | ) |
| | | | | | |
| | Net unrealized appreciation | | $ | 732,449 | |
| | | | | | |
Other Information
The following is a summary of the inputs used, as of June 30, 2021, 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 | | | 11,126,381 | |
Level 3 | | Significant Unobservable Inputs | | | — | |
| | | | | | |
| | | | $ | 11,126,381 | |
| | | | | | |
The accompanying footnotes are an integral part of the financial statements.
20
MISSISSIPPI TAX-FREE INCOME SERIES
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2021
| | | | | | | | |
ASSETS: | | | | | | | | |
Investments in securities, at fair value (Cost: $10,393,932) | | | | | | $ | 11,126,381 | |
Cash | | | | | | | 211,658 | |
Interest receivable | | | | | | | 134,588 | |
| | | | | | | | |
Total assets | | | | | | | 11,472,627 | |
LIABILITIES: | | | | | | | | |
Payable for: | | | | | | | | |
Distributions to shareholders | | | 37,856 | | | | | |
Fund shares redeemed | | | 2,315 | | | | | |
Investment advisory fee | | | 2,702 | | | | | |
Transfer agent fee | | | 3,066 | | | | | |
Professional fees | | | 5,888 | | | | | |
Custodian expense | | | 2,023 | | | | | |
Trustee fees | | | 741 | | | | | |
Accrued expenses | | | 6,386 | | | | | |
| | | | | | | | |
Total liabilities | | | | | | | 60,977 | |
| | | | | | | | |
NET ASSETS: | | | | | | | | |
Capital | | | | | | | 10,659,184 | |
Total distributable earnings | | | | | | | 752,466 | |
| | | | | | | | |
Net assets at value | | | | | | $ | 11,411,650 | |
| | | | | | | | |
NET ASSET VALUE, offering price and redemption price per share
(920,320 shares outstanding; unlimited number of shares authorized; no par value) | | | | | | $ | 12.40 | |
| | | | | | | | |
STATEMENT OF OPERATIONS
For the year ended June 30, 2021
| | | | |
Net investment income: | |
Interest income | | $ | 331,291 | |
| | | | |
Expenses: | |
Investment advisory fee | | | 56,839 | |
Transfer agent fee | | | 17,052 | |
Registration fees | | | 10,008 | |
Compliance expense | | | 6,994 | |
Custodian expense | | | 6,201 | |
Pricing expense | | | 4,500 | |
Professional fees | | | 2,564 | |
Trustees fees | | | 1,179 | |
Other expenses | | | 3,335 | |
| | | | |
Total expenses | | | 108,672 | |
Fees waived by Adviser (Note 2) | | | (29,061 | ) |
Custodian expense reduction (Note 7) | | | (26 | ) |
| | | | |
Net expenses | | | 79,585 | |
| | | | |
Net investment income | | | 251,706 | |
| | | | |
Realized and unrealized gain on investments: | | | | |
Net realized gain | | | 20,016 | |
Net change in unrealized appreciation/depreciation | | | 30,371 | |
| | | | |
Net realized and unrealized gain on investments | | | 50,387 | |
| | | | |
Net increase in net assets resulting from operations | | $ | 302,093 | |
| | | | |
The accompanying footnotes are an integral part of the financial statements.
21
MISSISSIPPI TAX-FREE INCOME SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended June 30, 2021 and 2020
| | | | | | | | |
| | | 2021 | | | 2020 | |
Operations: | | | | | | | | |
Net investment income | | | $ 251,706 | | | | $ 275,568 | |
Net realized gain on investments | | | 20,016 | | | | 34,775 | |
Net change in unrealized appreciation/depreciation | | | 30,371 | | | | 99,042 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 302,093 | | | | 409,385 | |
Total distributions (Note 6) | | | (272,976 | ) | | | (289,777 | ) |
Net Fund share transactions (Note 4) | | | 271,443 | | | | (333,019 | ) |
| | | | | | | | |
Total increase/(decrease) | | | 300,560 | | | | (213,411 | ) |
Net assets: | | | | | | | | |
Beginning of year | | | 11,111,090 | | | | 11,324,501 | |
| | | | | | | | |
End of year | | | $11,411,650 | | | | $11,111,090 | |
| | | | | | | | |
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Selected data for a share outstanding: | | For the years ended June 30, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
Net asset value, beginning of year | | | $12.37 | | | | $12.21 | | | | $11.92 | | | | $12.14 | | | | $12.55 | |
| | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.27 | | | | 0.31 | | | | 0.33 | | | | 0.33 | | | | 0.34 | |
Net gains/(losses) on investments | | | 0.05 | | | | 0.18 | | | | 0.29 | | | | (0.22 | ) | | | (0.41 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.32 | | | | 0.49 | | | | 0.62 | | | | 0.11 | | | | (0.07 | ) |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income | | | (0.27 | ) | | | (0.31 | ) | | | (0.33 | ) | | | (0.33 | ) | | | (0.34 | ) |
Distributions from capital gains | | | (0.02 | ) | | | (0.02 | ) | | | 0.00 | (b) | | | 0.00 | (b) | | | 0.00 | |
| | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.29 | ) | | | (0.33 | ) | | | (0.33 | ) | | | (0.33 | ) | | | (0.34 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, end of year | | | $12.40 | | | | $12.37 | | | | $12.21 | | | | $11.92 | | | | $12.14 | |
| | | | | | | | | | | | | | | | | | | | |
Total return | | | 2.68% | | | | 4.01% | | | | 5.29% | | | | 0.99% | | | | (0.48)% | |
Net assets, end of year (in thousands) | | | $11,412 | | | | $11,111 | | | | $11,325 | | | | $11,615 | | | | $12,448 | |
Ratio of net expenses to average net assets (a) | | | 0.70% | | | | 0.70% | | | | 0.70% | | | | 0.70% | | | | 0.70% | |
Ratio of gross expenses to average net assets | | | 0.96% | | | | 0.99% | | | | 0.97% | | | | 0.92% | | | | 0.85% | |
Ratio of net investment income to average net assets | | | 2.21% | | | | 2.51% | | | | 2.75% | | | | 2.75% | | | | 2.80% | |
Portfolio turnover | | | 8.85% | | | | 10.26% | | | | 4.65% | | | | 7.26% | | | | 14.06% | |
| (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. |
The accompanying footnotes are an integral part of the financial statements.
22
DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
North Carolina Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
| SCHOOL IMPROVEMENT BONDS | | | | | | | | | | | | | | | | | | |
| 17.87% of Net Assets | | | | | | | | | | | | | | | | | | |
Brunswick County NC Limited Obligation | | | 5.000 | % | | | 06/01/2030 | | | Aa2 | | $ | 250,000 | | | $ | 292,228 | |
Brunswick County NC Limited Obligation | | | 5.000 | | | | 06/01/2031 | | | Aa2 | | | 250,000 | | | | 292,335 | |
Buncombe County NC Limited Obligation | | | 4.000 | | | | 06/01/2036 | | | Aa1 | | | 125,000 | | | | 152,748 | |
Burke County NC Limited Obligation | | | 4.000 | | | | 04/01/2034 | | | Aa3 | | | 250,000 | | | | 289,850 | |
Cabarrus County NC | | | 4.000 | | | | 06/01/2034 | | | Aa2 | | | 795,000 | | | | 925,285 | |
Cabarrus County NC Limited Obligation | | | 5.000 | | | | 04/01/2035 | | | Aa2 | | | 1,435,000 | | | | 1,711,065 | |
Cabarrus County NC Limited Obligation | | | 4.000 | | | | 06/01/2035 | | | Aa2 | | | 1,650,000 | | | | 1,916,294 | |
Chatham County NC Limited Obligation | | | 4.000 | | | | 11/01/2036 | | | Aa2 | | | 750,000 | | | | 886,643 | |
Chatham County NC Limited Obligation | | | 4.000 | | | | 11/01/2037 | | | Aa2 | | | 2,000,000 | | | | 2,324,960 | |
Davidson County NC Limited Obligation | | | 5.000 | | | | 06/01/2032 | | | Aa2 | | | 500,000 | | | | 598,960 | |
Duplin County NC Limited Obligation | | | 5.000 | | | | 04/01/2032 | | | A2 | | | 750,000 | | | | 876,353 | |
Duplin County NC Limited Obligation | | | 5.000 | | | | 04/01/2034 | | | A2 | | | 865,000 | | | | 1,007,682 | |
Henderson County NC Limited Obligation | | | 4.000 | | | | 06/01/2034 | | | Aa2 | | | 200,000 | | | | 236,492 | |
Henderson County NC Limited Obligation | | | 4.000 | | | | 06/01/2037 | | | Aa2 | | | 1,275,000 | | | | 1,540,162 | |
Henderson County NC Limited Obligation | | | 4.000 | | | | 06/01/2038 | | | Aa2 | | | 1,060,000 | | | | 1,277,512 | |
Onslow County NC Limited Obligation | | | 5.000 | | | | 06/01/2033 | | | Aa2 | | | 500,000 | | | | 583,400 | |
Orange County NC | | | 3.000 | | | | 11/15/2038 | | | Aa1 | | | 700,000 | | | | 794,052 | |
Pitt County NC Limited Obligation | | | 4.000 | | | | 04/01/2031 | | | Aa2 | | | 500,000 | | | | 579,900 | |
Pitt County NC Limited Obligation | | | 4.000 | | | | 04/01/2034 | | | Aa2 | | | 550,000 | | | | 634,222 | |
Randolph County NC Limited Obligation | | | 3.000 | | | | 10/01/2036 | | | Aa3 | | | 325,000 | | | | 365,898 | |
Randolph County NC Limited Obligation | | | 4.000 | | | | 10/01/2037 | | | Aa3 | | | 250,000 | | | | 298,555 | |
Randolph County NC Limited Obligation | | | 4.000 | | | | 10/01/2039 | | | Aa3 | | | 350,000 | | | | 416,181 | |
Rutherford County NC Limited Obligation | | | 4.000 | | | | 03/01/2037 | | | A1 | | | 410,000 | | | | 493,029 | |
Rutherford County NC Limited Obligation | | | 4.000 | | | | 03/01/2039 | | | A1 | | | 500,000 | | | | 596,770 | |
Rutherford County NC Limited Obligation | | | 4.000 | | | | 03/01/2040 | | | A1 | | | 325,000 | | | | 387,032 | |
Sampson County NC Limited Obligation | | | 5.000 | | | | 12/01/2033 | | | A1 | | | 1,975,000 | | | | 2,323,173 | |
Sampson County NC Limited Obligation | | | 5.000 | | | | 09/01/2040 | | | A1 | | | 750,000 | | | | 917,977 | |
Scotland County NC | | | 4.500 | | | | 12/01/2036 | | | A* | | | 1,170,000 | | | | 1,387,573 | |
Surry County NC Limited Obligation | | | 4.000 | | | | 06/01/2034 | | | Aa3 | | | 350,000 | | | | 415,968 | |
Surry County NC Limited Obligation | | | 4.000 | | | | 06/01/2036 | | | Aa3 | | | 590,000 | | | | 699,745 | |
Surry County NC Limited Obligation | | | 4.000 | | | | 06/01/2037 | | | Aa3 | | | 730,000 | | | | 860,415 | |
Wake County NC Limited Obligation | | | 4.000 | | | | 09/01/2037 | | | Aa1 | | | 750,000 | | | | 910,343 | |
Wayne County NC | | | 4.000 | | | | 06/01/2034 | | | Aa3 | | | 1,500,000 | | | | 1,732,783 | |
Wilkes County NC Limited Obligation | | | 5.000 | | | | 06/01/2031 | | | A1 | | | 350,000 | | | | 407,936 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 29,133,521 | |
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS | |
| 16.58% of Net Assets | | | | | | | | | | | | | | | | | | |
Appalachian NC State University | | | 4.000 | | | | 05/01/2033 | | | A1 | | | 500,000 | | | | 581,275 | |
Appalachian NC State University** | | | 5.000 | | | | 05/01/2036 | | | A1 | | | 1,000,000 | | | | 1,240,520 | |
Iredell County NC Community College | | | 5.000 | | | | 04/01/2026 | | | Aa1 | | | 225,000 | | | | 225,686 | |
Iredell County NC Community College | | | 5.000 | | | | 04/01/2027 | | | Aa1 | | | 325,000 | | | | 326,238 | |
NC State Capital Facilities Davidson College | | | 5.000 | | | | 03/01/2032 | | | AA+* | | | 310,000 | | | | 319,694 | |
NC State Capital Facilities Finance Agency Davidson College | | | 4.750 | | | | 03/01/2035 | | | AA+* | | | 1,000,000 | | | | 1,027,400 | |
NC State Capital Facilities Wake Forest | | | 5.000 | | | | 01/01/2048 | | | Aa3 | | | 315,000 | | | | 382,413 | |
Scotland County NC | | | 5.000 | | | | 12/01/2033 | | | A* | | | 250,000 | | | | 300,475 | |
University of NC at Asheville | | | 4.000 | | | | 06/01/2036 | | | A1 | | | 1,350,000 | | | | 1,590,084 | |
University of NC at Charlotte Board of Governors | | | 4.000 | | | | 10/01/2037 | | | Aa3 | | | 750,000 | | | | 868,778 | |
University of NC at Charlotte Board of Governors | | | 5.000 | | | | 10/01/2042 | | | Aa3 | | | 250,000 | | | | 305,878 | |
University of NC at Charlotte Board of Governors | | | 4.000 | | | | 10/01/2040 | | | Aa3 | | | 305,000 | | | | 362,673 | |
University of NC Chapel Hill Hospitals | | | 4.000 | | | | 02/01/2037 | | | Aa3 | | | 1,000,000 | | | | 1,165,360 | |
University of NC Chapel Hill Hospitals | | | 4.000 | | | | 02/01/2038 | | | Aa3 | | | 400,000 | | | | 464,596 | |
University of NC Charlotte | | | 4.000 | | | | 10/01/2035 | | | Aa3 | | | 250,000 | | | | 290,080 | |
University of NC Charlotte | | | 4.000 | | | | 10/01/2036 | | | Aa3 | | | 250,000 | | | | 289,755 | |
University of NC Charlotte | | | 5.000 | | | | 04/01/2040 | | | Aa3 | | | 2,650,000 | | | | 3,046,836 | |
University of NC Greensboro | | | 5.000 | | | | 04/01/2033 | | | Aa3 | | | 900,000 | | | | 1,004,795 | |
University of NC Greensboro | | | 4.000 | | | | 04/01/2035 | | | Aa3 | | | 750,000 | | | | 872,063 | |
University of NC Greensboro | | | 4.000 | | | | 04/01/2036 | | | Aa3 | | | 500,000 | | | | 579,980 | |
The accompanying footnotes are an integral part of the financial statements.
23
DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
North Carolina Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
University of NC Greensboro | | | 5.000 | % | | | 04/01/2038 | | | Aa3 | | $ | 425,000 | | | $ | 523,247 | |
University of NC Greensboro | | | 5.000 | | | | 04/01/2039 | | | Aa3 | | | 2,870,000 | | | | 3,191,670 | |
University of NC Wilmington | | | 4.000 | | | | 04/01/2037 | | | Aa3 | | | 385,000 | | | | 456,429 | |
University of NC Wilmington | | | 4.000 | | | | 10/01/2037 | | | Aa3 | | | 750,000 | | | | 896,948 | |
University of NC Wilmington | | | 4.000 | | | | 04/01/2038 | | | Aa3 | | | 405,000 | | | | 479,160 | |
University of NC Wilmington | | | 4.000 | | | | 04/01/2039 | | | Aa3 | | | 1,380,000 | | | | 1,604,167 | |
University of NC Wilmington Limited Obligation | | | 5.000 | | | | 06/01/2033 | | | A1 | | | 550,000 | | | | 633,661 | |
University of NC Wilmington Limited Obligation | | | 4.000 | | | | 06/01/2034 | | | A1 | | | 500,000 | | | | 561,335 | |
University of North Carolina | | | 5.000 | | | | 10/01/2033 | | | A3 | | | 30,000 | | | | 30,084 | |
Western Carolina NC University | | | 5.000 | | | | 10/01/2043 | | | Aa3 | | | 1,000,000 | | | | 1,217,500 | |
Western Carolina NC University | | | 5.000 | | | | 10/01/2035 | | | Aa3 | | | 1,000,000 | | | | 1,231,890 | |
Western Carolina NC University | | | 5.000 | | | | 10/01/2045 | | | Aa3 | | | 825,000 | | | | 958,682 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 27,029,352 | |
| PUBLIC FACILITIES REVENUE BONDS | | | | | | | | | | | |
| 16.20% of Net Assets | | | | | | | | | | | | | | | | | | |
Charlotte NC Certificate of Participation | | | 4.000 | | | | 06/01/2036 | | | Aa2 | | | 1,000,000 | | | | 1,199,220 | |
Charlotte NC Certificate of Participation | | | 4.000 | | | | 06/01/2037 | | | Aa2 | | | 3,000,000 | | | | 3,590,190 | |
Charlotte NC Certificate of Participation Convention Facility Project | | | 4.000 | | | | 06/01/2037 | | | Aa2 | | | 500,000 | | | | 598,365 | |
Charlotte NC Certificate of Participation Convention Facility Project | | | 4.000 | | | | 06/01/2039 | | | Aa2 | | | 1,000,000 | | | | 1,192,600 | |
Davidson County NC Limited Obligation | | | 4.000 | | | | 06/01/2037 | | | Aa2 | | | 200,000 | | | | 240,116 | |
Davidson County NC Limited Obligation | | | 4.000 | | | | 06/01/2038 | | | Aa2 | | | 240,000 | | | | 287,479 | |
Davidson County NC Limited Obligation | | | 4.000 | | | | 06/01/2040 | | | Aa2 | | | 635,000 | | | | 758,292 | |
Durham Capital Financing Corporation | | | 4.000 | | | | 06/01/2036 | | | Aa1 | | | 300,000 | | | | 366,594 | |
Durham Capital Financing Corporation | | | 4.000 | | | | 06/01/2037 | | | Aa1 | | | 270,000 | | | | 328,668 | |
Durham Capital Financing Corporation | | | 4.000 | | | | 06/01/2038 | | | Aa1 | | | 250,000 | | | | 303,623 | |
Durham NC Limited Obligation | | | 4.000 | | | | 04/01/2036 | | | Aa1 | | | 1,000,000 | | | | 1,184,650 | |
Forsyth County NC Limited Tax | | | 5.000 | | | | 04/01/2031 | | | Aa1 | | | 335,000 | | | | 346,544 | |
Harnett County NC Limited Obligation | | | 4.000 | | | | 10/01/2038 | | | Aa3 | | | 1,055,000 | | | | 1,249,110 | |
Henderson County NC Limited Obligation | | | 5.000 | | | | 10/01/2030 | | | Aa2 | | | 250,000 | | | | 294,158 | |
Henderson County NC Limited Obligation | | | 5.000 | | | | 10/01/2031 | | | Aa2 | | | 500,000 | | | | 587,400 | |
Hoke County NC Limited Obligation | | | 3.000 | | | | 06/01/2038 | | | Aa3 | | | 500,000 | | | | 554,280 | |
Hoke County NC Limited Obligation | | | 3.000 | | | | 06/01/2039 | | | Aa3 | | | 750,000 | | | | 828,548 | |
Hoke County NC Limited Obligation | | | 3.000 | | | | 06/01/2040 | | | Aa3 | | | 750,000 | | | | 827,115 | |
Johnston County NC Limited Obligation | | | 4.000 | | | | 04/01/2035 | | | Aa2 | | | 360,000 | | | | 438,170 | |
Johnston County NC Limited Obligation | | | 4.000 | | | | 04/01/2037 | | | Aa2 | | | 975,000 | | | | 1,178,668 | |
Kannapolis NC Limited Obligation | | | 5.000 | | | | 04/01/2032 | | | A1 | | | 500,000 | | | | 559,530 | |
Moore County NC | | | 3.000 | | | | 06/01/2039 | | | Aa2 | | | 790,000 | | | | 883,378 | |
Moore County NC | | | 3.000 | | | | 06/01/2040 | | | Aa2 | | | 650,000 | | | | 724,315 | |
Mooresville NC Limited Obligation | | | 3.000 | | | | 10/01/2038 | | | Aa2 | | | 200,000 | | | | 223,806 | |
Onslow County NC Limited Obligation | | | 5.000 | | | | 06/01/2032 | | | Aa2 | | | 500,000 | | | | 583,610 | |
Orange County NC | | | 4.000 | | | | 10/01/2036 | | | Aa1 | | | 375,000 | | | | 452,681 | |
Orange County NC | | | 4.000 | | | | 10/01/2037 | | | Aa1 | | | 375,000 | | | | 452,681 | |
Orange County NC | | | 4.000 | | | | 10/01/2038 | | | Aa1 | | | 275,000 | | | | 331,251 | |
Orange County NC | | | 4.000 | | | | 10/01/2038 | | | Aa1 | | | 765,000 | | | | 919,499 | |
Orange County NC | | | 4.000 | | | | 10/01/2039 | | | Aa1 | | | 200,000 | | | | 240,392 | |
Raleigh NC Limited Obligation | | | 5.000 | | | | 10/01/2034 | | | Aa1 | | | 1,420,000 | | | | 1,624,421 | |
Randolph County NC Limited Obligation | | | 4.000 | | | | 10/01/2036 | | | Aa3 | | | 250,000 | | | | 299,843 | |
Randolph County NC Limited Obligation | | | 4.000 | | | | 10/01/2037 | | | Aa3 | | | 250,000 | | | | 299,198 | |
Randolph County NC Limited Obligation | | | 4.000 | | | | 10/01/2038 | | | Aa3 | | | 670,000 | | | | 798,982 | |
Randolph County NC Limited Obligation | | | 4.000 | | | | 10/01/2039 | | | Aa3 | | | 500,000 | | | | 594,545 | |
Thomasville NC Revenue | | | 4.000 | | | | 05/01/2036 | | | Aa3 | | | 500,000 | | | | 584,815 | |
Wilmington NC Limited Obligation | | | 4.000 | | | | 06/01/2036 | | | Aa1 | | | 230,000 | | | | 281,055 | |
Wilmington NC Limited Obligation | | | 4.000 | | | | 06/01/2037 | | | Aa1 | | | 170,000 | | | | 207,257 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 26,415,049 | |
| MUNICIPAL UTILITY REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 13.28% of Net Assets | | | | | | | | | | | | | | | | | | |
Brunswick County NC Enterprise System Revenue | | | 5.000 | | | | 04/01/2031 | | | Aa3 | | | 500,000 | | | | 577,880 | |
Brunswick County NC Enterprise System Revenue | | | 4.000 | | | | 04/01/2039 | | | Aa3 | | | 1,000,000 | | | | 1,180,710 | |
The accompanying footnotes are an integral part of the financial statements.
24
DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
North Carolina Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
Buncombe County NC Metropolitan Sewer District | | | 5.000 | % | | | 07/01/2039 | | | Aaa | | $ | 550,000 | | | $ | 623,145 | |
Cary NC Combined Enterprise System Revenue | | | 4.000 | | | | 12/01/2042 | | | Aaa | | | 750,000 | | | | 877,853 | |
Charlotte NC Storm Water Fee Revenue | | | 3.000 | | | | 12/01/2036 | | | Aaa | | | 250,000 | | | | 284,000 | |
Charlotte NC Storm Water Fee Revenue | | | 3.000 | | | | 12/01/2037 | | | Aaa | | | 250,000 | | | | 282,590 | |
Charlotte NC Water & Sewer System | | | 4.000 | | | | 07/01/2046 | | | Aaa | | | 1,050,000 | | | | 1,270,290 | |
Concord NC Utilities System Revenue | | | 4.500 | | | | 12/01/2034 | | | Aa2 | | | 1,000,000 | | | | 1,171,270 | |
Fuquay-Varina NC Combined Utilities Revenue | | | 5.000 | | | | 04/01/2040 | | | Aa2 | | | 1,000,000 | | | | 1,192,890 | |
Gastonia NC Combined Utilities System Revenue | | | 5.000 | | | | 05/01/2034 | | | Aa2 | | | 570,000 | | | | 661,434 | |
Gastonia NC Combined Utilities System Revenue | | | 5.000 | | | | 05/01/2035 | | | Aa2 | | | 250,000 | | | | 290,205 | |
Greensboro NC Enterprise System Revenue | | | 4.000 | | | | 06/01/2045 | | | Aa1 | | | 1,965,000 | | | | 2,353,736 | |
High Point NC Combined Enterprise | | | 5.000 | | | | 11/01/2039 | | | Aa2 | | | 750,000 | | | | 856,155 | |
Lincoln County NC Enterprise System Revenue | | | 3.000 | | | | 08/01/2038 | | | AA* | | | 160,000 | | | | 177,158 | |
Lincoln County NC Enterprise System Revenue | | | 3.000 | | | | 08/01/2039 | | | AA* | | | 340,000 | | | | 375,255 | |
Lincoln County NC Enterprise System Revenue | | | 3.000 | | | | 08/01/2040 | | | AA* | | | 265,000 | | | | 291,542 | |
Lincoln County NC Enterprise System Revenue | | | 3.000 | | | | 08/01/2041 | | | AA* | | | 240,000 | | | | 263,405 | |
Martin County NC Limited Obligation Water and Sewer District | | | 4.750 | | | | 06/01/2034 | | | A2 | | | 1,150,000 | | | | 1,282,227 | |
NC Municipal Power Agency #1 Catawba Electric Revenue | | | 5.000 | | | | 01/01/2032 | | | A* | | | 500,000 | | | | 586,880 | |
Pender County NC Limited Obligation | | | 3.000 | | | | 06/01/2038 | | | Aa3 | | | 490,000 | | | | 537,403 | |
Pender County NC Limited Obligation | | | 3.000 | | | | 06/01/2045 | | | Aa3 | | | 500,000 | | | | 538,110 | |
Sampson County NC Water & Sewer District | | | 5.000 | | | | 06/01/2037 | | | A1 | | | 920,000 | | | | 1,068,413 | |
Union County NC Enterprise System Revenue | | | 4.000 | | | | 06/01/2038 | | | Aa2 | | | 500,000 | | | | 597,955 | |
Union County NC Enterprise System Revenue | | | 4.000 | | | | 06/01/2044 | | | Aa2 | | | 415,000 | | | | 491,854 | |
Union County NC Enterprise System Revenue | | | 3.000 | | | | 06/01/2046 | | | Aa2 | | | 1,750,000 | | | | 1,916,635 | |
Wake County NC Industrial Facilities & Pollution Control Duke Energy | | | 4.000 | | | | 06/01/2041 | | | Aa3 | | | 1,260,000 | | | | 1,331,429 | |
Wilmington NC Storm Water Revenue | | | 5.000 | | | | 06/01/2035 | | | Aa2 | | | 500,000 | | | | 582,975 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 21,663,399 | |
| PREREFUNDED BONDS | | | | | | | | | | | | | | | | | | |
| 10.01% of Net Assets | | | | | | | | | | | | | | | | | | |
Charlotte NC Certificate of Participation | | | 4.000 | | | | 12/01/2034 | | | Aa1 | | | 290,000 | | | | 335,136 | |
Durham Capital Financing Corporation | | | 4.000 | | | | 06/01/2043 | | | Aa1 | | | 1,000,000 | | | | 1,072,160 | |
Durham Capital Financing Corporation Limited Obligation | | | 5.000 | | | | 06/01/2034 | | | Aa1 | | | 500,000 | | | | 545,750 | |
Johnston County NC Limited Obligation | | | 4.750 | | | | 06/01/2033 | | | Aa2 | | | 500,000 | | | | 543,260 | |
NC Eastern Municipal Power Agency | | | 6.000 | | | | 01/01/2025 | | | AAA@ | | | 1,150,000 | | | | 1,370,674 | |
NC Municipal Power Agency #1 Catawba Electric Revenue | | | 5.000 | | | | 01/01/2030 | | | A* | | | 500,000 | | | | 599,250 | |
NC State Capital Facilities Duke University | | | 5.000 | | | | 10/01/2041 | | | Aa1 | | | 2,000,000 | | | | 2,383,820 | |
NC State Medical Care Commission Duke University Health | | | 5.000 | | | | 06/01/2035 | | | Aa2 | | | 500,000 | | | | 522,225 | |
NC State University at Raleigh | | | 5.000 | | | | 10/01/2042 | | | Aa1 | | | 750,000 | | | | 830,333 | |
New Hanover County NC Hospital Revenue New Hanover Regional Medical** | | | 5.000 | | | | 10/01/2034 | | | NR | | | 1,500,000 | | | | 1,883,473 | |
Orange County NC Public Facilities Company Limited Obligation | | | 4.750 | | | | 10/01/2032 | | | Aa1 | | | 750,000 | | | | 793,163 | |
Raleigh NC Limited Obligation | | | 5.000 | | | | 10/01/2038 | | | Aa1 | | | 500,000 | | | | 553,915 | |
University of NC Charlotte | | | 5.000 | | | | 04/01/2035 | | | Aa3 | | | 595,000 | | | | 672,481 | |
University of NC Charlotte | | | 5.000 | | | | 04/01/2038 | | | Aa3 | | | 1,000,000 | | | | 1,130,220 | |
University of NC Charlotte | | | 5.000 | | | | 04/01/2043 | | | Aa3 | | | 1,500,000 | | | | 1,695,330 | |
University of NC Greensboro | | | 5.000 | | | | 04/01/2036 | | | Aa3 | | | 500,000 | | | | 518,200 | |
Winston Salem NC Limited Obligation | | | 5.000 | | | | 06/01/2031 | | | Aa1 | | | 800,000 | | | | 873,688 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 16,323,078 | |
| REFUNDING BONDS | | | | | | | | | | | | | | | | | | |
| 7.81% of Net Assets | | | | | | | | | | | | | | | | | | |
Asheville NC Limited Obligation | | | 3.000 | | | | 04/01/2041 | | | Aa1 | | | 250,000 | | | | 276,248 | |
Buncombe County NC Limited Obligation** | | | 5.000 | | | | 06/01/2035 | | | Aa1 | | | 1,000,000 | | | | 1,167,220 | |
Charlotte NC Certificate of Participation | | | 5.000 | | | | 06/01/2026 | | | Aa1 | | | 1,455,000 | | | | 1,459,512 | |
Charlotte NC Certificate of Participation | | | 5.000 | | | | 06/01/2027 | | | Aa1 | | | 775,000 | | | | 778,007 | |
Charlotte NC Certificate of Participation | | | 5.000 | | | | 06/01/2033 | | | Aa1 | | | 840,000 | | | | 914,315 | |
Charlotte NC Certificate of Participation | | | 5.000 | | | | 06/01/2034 | | | Aa1 | | | 750,000 | | | | 876,053 | |
Chatham County NC | | | 5.000 | | | | 11/01/2032 | | | Aa2 | | | 825,000 | | | | 977,411 | |
Durham County NC | | | 4.000 | | | | 06/01/2036 | | | Aaa | | | 225,000 | | | | 272,268 | |
Monroe NC Limited Obligation | | | 4.000 | | | | 03/01/2033 | | | Aa3 | | | 255,000 | | | | 291,190 | |
The accompanying footnotes are an integral part of the financial statements.
25
DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
North Carolina Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
Monroe NC Limited Obligation** | | | 5.000 | % | | | 03/01/2039 | | | Aa3 | | $ | 1,250,000 | | | $ | 1,482,560 | |
New Hanover County NC Limited Obligation | | | 5.000 | | | | 12/01/2027 | | | Aa1 | | | 505,000 | | | | 538,966 | |
Pitt County NC Certificate of Participation | | | 5.000 | | | | 04/01/2027 | | | Aa2 | | | 500,000 | | | | 518,200 | |
Rockingham County NC Limited Obligation | | | 5.000 | | | | 04/01/2027 | | | Aa3 | | | 250,000 | | | | 290,048 | |
Rockingham County NC Limited Obligation | | | 4.500 | | | | 04/01/2032 | | | Aa3 | | | 500,000 | | | | 569,650 | |
Sampson County NC Limited Obligation | | | 4.000 | | | | 09/01/2036 | | | A1 | | | 1,000,000 | | | | 1,155,710 | |
Sampson County NC Limited Obligation | | | 4.000 | | | | 09/01/2037 | | | A1 | | | 500,000 | | | | 577,530 | |
Thomasville NC Combined Enterprise System Revenue | | | 4.750 | | | | 05/01/2028 | | | A1 | | | 435,000 | | | | 449,881 | |
Union County NC Limited Obligation Refunding | | | 5.000 | | | | 12/01/2024 | | | Aa1 | | | 125,000 | | | | 144,648 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 12,739,417 | |
| HOSPITAL AND HEALTHCARE REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 5.47% of Net Assets | | | | | | | | | | | | | | | | | | |
Charlotte Mecklenburg NC Hospital Authority Atrium Health | | | 5.000 | | | | 01/15/2036 | | | Aa3 | | | 590,000 | | | | 737,683 | |
Charlotte Mecklenburg NC Hospital Healthcare System | | | 5.000 | | | | 01/15/2039 | | | Aa3 | | | 1,500,000 | | | | 1,599,690 | |
Charlotte Mecklenburg NC Hospital Authority Atrium Health | | | 5.000 | | | | 01/15/2033 | | | Aa3 | | | 210,000 | | | | 263,928 | |
NC State Medical Care Commission Health Care Facilities Rex Hospital | | | 4.000 | | | | 07/01/2039 | | | A2 | | | 550,000 | | | | 643,583 | |
NC State Medical Care Commission Health Care Facilities Rex Hospital | | | 5.000 | | | | 07/01/2033 | | | A2 | | | 750,000 | | | | 871,913 | |
NC State Medical Care Commission Health Care Facilities Vidant Health | | | 5.000 | | | | 06/01/2040 | | | A2 | | | 1,385,000 | | | | 1,604,355 | |
NC State Medical Care Commission Health Care Facilities Wake Medical | | | 5.000 | | | | 10/01/2031 | | | A2 | | | 1,000,000 | | | | 1,052,240 | |
NC State Medical Care Commission Health Care Facilities Wake Medical | | | 5.000 | | | | 10/01/2038 | | | A2 | | | 200,000 | | | | 210,242 | |
NC State Medical Care Commission Rex Healthcare | | | 4.000 | | | | 07/01/2040 | | | A2 | | | 750,000 | | | | 875,685 | |
NC State Medical Care Commission Wake Forest Baptist Hospital | | | 5.000 | | | | 12/01/2033 | | | A2 | | | 1,000,000 | | | | 1,062,240 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 8,921,559 | |
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS | | | | | | | | | | | | | | | | | | |
| 3.59% of Net Assets | | | | | | | | | | | | | | | | | | |
Buncombe County NC Limited Obligation | | | 5.000 | | | | 06/01/2033 | | | Aa1 | | | 600,000 | | | | 701,856 | |
Buncombe County NC Limited Obligation | | | 5.000 | | | | 06/01/2034 | | | Aa1 | | | 1,100,000 | | | | 1,243,968 | |
Buncombe County NC Limited Obligation | | | 5.000 | | | | 06/01/2034 | | | Aa1 | | | 365,000 | | | | 426,346 | |
Charlotte NC Certificate of Participation | | | 5.000 | | | | 12/01/2029 | | | Aa1 | | | 340,000 | | | | 346,810 | |
Rocky Mount NC Special Obligation | | | 4.500 | | | | 05/01/2032 | | | Aa3 | | | 1,500,000 | | | | 1,757,295 | |
Wilmington NC Limited Obligation | | | 3.000 | | | | 06/01/2037 | | | Aa1 | | | 370,000 | | | | 411,233 | |
Wilmington NC Limited Obligation | | | 3.000 | | | | 06/01/2041 | | | Aa1 | | | 370,000 | | | | 416,612 | |
Winston Salem NC Limited Obligation | | | 4.500 | | | | 06/01/2034 | | | Aa1 | | | 500,000 | | | | 556,345 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 5,860,465 | |
| TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 3.50% of Net Assets | | | | | | | | | | | | | | | | | | |
NC State Grant Anticipation Revenue Vehicle Garvee | | | 5.000 | | | | 03/01/2030 | | | A2 | | | 200,000 | | | | 230,942 | |
NC State Limited Obligation | | | 4.000 | | | | 05/01/2035 | | | Aa1 | | | 100,000 | | | | 122,842 | |
NC State Limited Obligation Build NC Bonds | | | 4.000 | | | | 05/01/2034 | | | Aa1 | | | 670,000 | | | | 802,144 | |
NC State Turnpike Authority | | | 5.000 | | | | 01/01/2036 | | | AA* | | | 500,000 | | | | 630,615 | |
NC State Turnpike Authority | | | 5.000 | | | | 01/01/2038 | | | AA* | | | 2,415,000 | | | | 3,036,065 | |
NC State Turnpike Authority Triangle Expressway | | | 4.000 | | | | 01/01/2036 | | | Aa1 | | | 250,000 | | | | 294,863 | |
NC State Turnpike Authority Triangle Expressway | | | 4.000 | | | | 01/01/2039 | | | Aa1 | | | 500,000 | | | | 586,985 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 5,704,456 | |
| AIRPORT REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 3.18% of Net Assets | | | | | | | | | | | | | | | | | | |
Charlotte NC Douglas International Airport | | | 5.000 | | | | 07/01/2030 | | | Aa3 | | | 1,095,000 | | | | 1,245,201 | |
Charlotte NC Douglas International Airport | | | 5.000 | | | | 07/01/2036 | | | Aa3 | | | 250,000 | | | | 309,435 | |
Charlotte NC Douglas International Airport | | | 4.000 | | | | 07/01/2036 | | | Aa3 | | | 500,000 | | | | 579,905 | |
Charlotte NC Douglas International Airport | | | 5.000 | | | | 07/01/2037 | | | Aa3 | | | 700,000 | | | | 866,418 | |
Charlotte NC Douglas International Airport | | | 5.000 | | | | 07/01/2042 | | | Aa3 | | | 1,325,000 | | | | 1,621,787 | |
Charlotte NC Douglas International Airport | | | 4.000 | | | | 07/01/2044 | | | Aa3 | | | 480,000 | | | | 565,814 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 5,188,560 | |
| LEASE REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 1.04% of Net Assets | | | | | | | | | | | | | | | | | | |
Buncombe County NC Limited Obligation | | | 5.000 | | | | 06/01/2032 | | | Aa1 | | | 1,500,000 | | | | 1,697,250 | |
| | | | | | | | | | | | | | | | | | |
The accompanying footnotes are an integral part of the financial statements.
26
DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
North Carolina Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
| ESCROWED TO MATURITY BONDS | | | | | | | | | | | | | | | | | | |
| .47% of Net Assets | | | | | | | | | | | | | | | | | | |
NC Eastern Municipal Power Agency | | | 6.000 | % | | | 01/01/2022 | | | A3 | | $ | 750,000 | | | $ | 771,930 | |
| | | | | | | | | | | | | | | | | | |
| AD VALOREM PROPERTY BONDS | | | | | | | | | | | | | | | | | | |
| .23% of Net Assets | | | | | | | | | | | | | | | | | | |
Raleigh NC Limited Obligation | | | 4.000 | | | | 06/01/2034 | | | Aa1 | | | 300,000 | | | | 369,423 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Total Investments (cost $150,757,324) (See (a) below for further explanation) 99.23% of Net Assets | | | | 161,817,459 | |
| | | | | | | | | | | | | | | | | | |
Other assets in excess of liabilities .77% | | | | | | | | | | | | | | | | | 1,251,391 | |
| | | | | | | | | | | | | | | | | | |
Net Assets 100% | | | | | | | | | | | | | | | | $ | 163,068,850 | |
| | | | | | | | | | | | | | | | | | |
| | # | | Ratings by Moody’s Investors Service unless noted otherwise. |
| | | | Bond ratings are unaudited and not covered by Report of Independent Registered Public Accounting Firm. |
| | | | 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 |
| | ** | | Security is segregated — see footnote 7 |
| (a) | | Cost for federal income tax purposes is $150,757,324 and net unrealized appreciation of investments is as follows: |
| | | | | | |
| | Unrealized appreciation | | $ | 11,094,423 | |
| | Unrealized depreciation | | | (34,288 | ) |
| | | | | | |
| | Net unrealized appreciation | | $ | 11,060,135 | |
| | | | | | |
Other Information
The following is a summary of the inputs used, as of June 30, 2021, 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 | | | 161,817,459 | |
Level 3 | | Significant Unobservable Inputs | | | — | |
| | | | | | |
| | | | $ | 161,817,459 | |
| | | | | | |
The accompanying footnotes are an integral part of the financial statements.
27
NORTH CAROLINA TAX-FREE INCOME SERIES
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2021
| | | | | | | | |
ASSETS: | | | | | | | | |
Investments in securities, at fair value (Cost: $150,757,324) | | | | | | $ | 161,817,459 | |
Cash | | | | | | | 419,300 | |
Receivable for fund shares sold | | | | | | | 13,968 | |
Interest receivable | | | | | | | 1,351,515 | |
| | | | | | | | |
Total assets | | | | | | | 163,602,242 | |
LIABILITIES: | | | | | | | | |
Payable for: | | | | | | | | |
Distributions to shareholders | | | 271,257 | | | | | |
Fund shares redeemed | | | 127,820 | | | | | |
Investment advisory fee | | | 65,522 | | | | | |
Transfer agent fee | | | 27,260 | | | | | |
Trustees fees | | | 3,177 | | | | | |
Professional fees | | | 16,781 | | | | | |
Custodian expense | | | 3,727 | | | | | |
Accrued expenses | | | 17,848 | | | | | |
| | | | | | | | |
Total liabilities | | | | | | | 533,392 | |
| | | | | | | | |
NET ASSETS: | | | | | | | | |
Capital | | | | | | | 153,458,157 | |
Total distributable earnings | | | | | | | 9,610,693 | |
| | | | | | | | |
Net assets at value | | | | | | $ | 163,068,850 | |
| | | | | | | | |
NET ASSET VALUE, offering price and redemption price per share
(13,530,455 shares outstanding; unlimited number of shares authorized; no par value) | | | | | | $ | 12.05 | |
| | | | | | | | |
STATEMENT OF OPERATIONS
For the year ended June 30, 2021
| | | | |
Net investment income: | | | | |
Interest income | | $ | 4,468,581 | |
| | | | |
Expenses: | | | | |
Investment advisory fee | | | 774,158 | |
Transfer agent fee | | | 200,748 | |
Professional fees | | | 36,871 | |
Custodian expense | | | 23,159 | |
Trustees fees | | | 16,938 | |
Pricing fees | | | 13,501 | |
Registration fees | | | 7,213 | |
Compliance expense | | | 7,202 | |
Other expenses | | | 26,000 | |
| | | | |
Total expenses | | | 1,105,790 | |
Fees waived by Adviser (Note 2) | | | (63 | ) |
Custodian expense reduction (Note 7) | | | (96 | ) |
| | | | |
Net expenses | | | 1,105,631 | |
| | | | |
Net investment income | | | 3,362,950 | |
| | | | |
Realized and unrealized gain on investments: | | | | |
Net realized gain | | | 132,706 | |
Net change in unrealized appreciation/depreciation | | | 1,574,326 | |
| | | | |
Net realized and unrealized gain on investments | | | 1,707,032 | |
| | | | |
Net increase in net assets resulting from operations | | $ | 5,069,982 | |
| | | | |
The accompanying footnotes are an integral part of the financial statements.
28
NORTH CAROLINA TAX-FREE INCOME SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended June 30, 2021 and 2020
| | | | | | | | |
| | | 2021 | | | 2020 | |
Operations: | | | | | | | | |
Net investment income | | $ | 3,362,950 | | | $ | 3,527,438 | |
Net realized gain on investments | | | 132,706 | | | | 172,081 | |
Net change in unrealized appreciation/depreciation | | | 1,574,326 | | | | 3,013,563 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 5,069,982 | | | | 6,713,082 | |
Total distributions (Note 6) | | | (3,362,950 | ) | | | (3,527,438 | ) |
Net Fund share transactions (Note 4) | | | (3,926 | ) | | | 12,102,173 | |
| | | | | | | | |
Total increase | | | 1,703,106 | | | | 15,287,817 | |
Net assets: | | | | | | | | |
Beginning of year | | | 161,365,744 | | | | 146,077,927 | |
| | | | | | | | |
End of year | | $ | 163,068,850 | | | $ | 161,365,744 | |
| | | | | | | | |
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Selected data for a share outstanding: | | For the years ended June 30, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
Net asset value, beginning of year | | | $11.93 | | | | $11.68 | | | | $11.34 | | | | $11.50 | | | | $12.02 | |
| | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.25 | | | | 0.27 | | | | 0.29 | | | | 0.31 | | | | 0.32 | |
Net gains/(losses) on investments | | | 0.12 | | | | 0.25 | | | | 0.34 | | | | (0.16 | ) | | | (0.52 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.37 | | | | 0.52 | | | | 0.63 | | | | 0.15 | | | | (0.20 | ) |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income | | | (0.25 | ) | | | (0.27 | ) | | | (0.29 | ) | | | (0.31 | ) | | | (0.32 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, end of year | | | $12.05 | | | | $11.93 | | | | $11.68 | | | | $11.34 | | | | $11.50 | |
| | | | | | | | | | | | | | | | | | | | |
Total return | | | 3.12% | | | | 4.48% | | | | 5.69% | | | | 1.27% | | | | (1.68)% | |
Net assets, end of year (in thousands) | | | $163,069 | | | | $161,366 | | | | $146,078 | | | | $131,178 | | | | $139,272 | |
Ratio of net expenses to average net assets (a) | | | 0.68% | | | | 0.69% | | | | 0.70% | | | | 0.70% | | | | 0.69% | |
Ratio of gross expenses to average net assets | | | 0.68% | | | | 0.69% | | | | 0.71% | | | | 0.71% | | | | 0.69% | |
Ratio of net investment income to average net assets | | | 2.07% | | | | 2.27% | | | | 2.58% | | | | 2.66% | | | | 2.73% | |
Portfolio turnover | | | 7.79% | | | | 9.88% | | | | 13.02% | | | | 11.76% | | | | 11.50% | |
| (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. |
The accompanying footnotes are an integral part of the financial statements.
29
DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE SHORT-TO-MEDIUM SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
North Carolina Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS | | | | | | | | | | | |
| 23.81% of Net Assets | | | | | | | | | | | | | | | | | | |
East Carolina University | | | 5.000 | % | | | 10/01/2027 | | | Aa3 | | $ | 250,000 | | | $ | 298,223 | |
Pitt County NC Limited Obligation | | | 5.000 | | | | 04/01/2027 | | | Aa2 | | | 495,000 | | | | 605,726 | |
University of NC Charlotte | | | 5.000 | | | | 10/01/2025 | | | Aa3 | | | 110,000 | | | | 130,547 | |
University of NC Charlotte | | | 5.000 | | | | 04/01/2028 | | | Aa3 | | | 250,000 | | | | 290,150 | |
University of NC Greensboro | | | 5.000 | | | | 04/01/2026 | | | Aa3 | | | 400,000 | | | | 480,676 | |
University of NC Wilmington | | | 4.000 | | | | 06/01/2029 | | | A1 | | | 750,000 | | | | 854,640 | |
University of NC Wilmington Limited Obligation | | | 4.000 | | | | 06/01/2030 | | | A1 | | | 200,000 | | | | 226,570 | |
Western Carolina University | | | 5.000 | | | | 10/01/2025 | | | Aa3 | | | 225,000 | | | | 265,779 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 3,152,311 | |
| REFUNDING BONDS | | | | | | | | | | | | | | | | | | |
| 17.36% of Net Assets | | | | | | | | | | | | | | | | | | |
Bertie County Limited Obligation** | | | 4.000 | | | | 06/01/2022 | | | A2 | | | 200,000 | | | | 206,752 | |
Charlotte NC Certificate of Participation | | | 4.000 | | | | 06/01/2022 | | | Aa1 | | | 125,000 | | | | 129,431 | |
Charlotte NC Certificate of Participation | | | 5.000 | | | | 06/01/2023 | | | Aa1 | | | 25,000 | | | | 27,283 | |
Charlotte NC Certificate of Participation | | | 4.000 | | | | 06/01/2025 | | | Aa1 | | | 100,000 | | | | 107,016 | |
Charlotte NC Certificate of Participation | | | 5.000 | | | | 12/01/2025 | | | Aa2 | | | 100,000 | | | | 119,596 | |
Dare County NC Limited Obligation | | | 5.000 | | | | 06/01/2024 | | | Aa2 | | | 335,000 | | | | 349,985 | |
Raleigh NC Limited ObligationRefunding | | | 5.000 | | | | 10/01/2023 | | | Aa2 | | | 250,000 | | | | 276,600 | |
Rockingham County NC Limited Obligation** | | | 5.000 | | | | 04/01/2023 | | | Aa3 | | | 250,000 | | | | 270,755 | |
Rockingham County NC Limited Obligation | | | 4.000 | | | | 04/01/2024 | | | Aa3 | | | 105,000 | | | | 115,275 | |
Sampson County NC Limited Obligation | | | 5.000 | | | | 12/01/2023 | | | A1 | | | 165,000 | | | | 183,299 | |
Sampson County NC Limited Obligation | | | 5.000 | | | | 09/01/2025 | | | A1 | | | 125,000 | | | | 147,670 | |
Sampson County NC Limited Obligation | | | 5.000 | | | | 09/01/2026 | | | A1 | | | 210,000 | | | | 255,526 | |
Warren County NC Limited Obligation** | | | 5.000 | | | | 06/01/2023 | | | A1 | | | 100,000 | | | | 108,847 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 2,298,035 | |
| MUNICIPAL UTILITY REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 16.53% of Net Assets | | | | | | | | | | | | | | | | | | |
Brunswick County NC EnterpriseSystem Revenue** | | | 5.000 | | | | 04/01/2027 | | | Aa3 | | | 250,000 | | | | 291,060 | |
Cary NC Combined Enterprise Systems | | | 4.000 | | | | 12/01/2028 | | | Aaa | | | 250,000 | | | | 287,960 | |
Columbus County NC Limited Obligation | | | 5.000 | | | | 06/01/2023 | | | A1 | | | 355,000 | | | | 386,407 | |
Lincoln County NC Enterprise System Revenue | | | 5.000 | | | | 08/01/2029 | | | AA* | | | 100,000 | | | | 131,268 | |
Monroe NC Limited Obligation | | | 5.000 | | | | 03/01/2028 | | | Aa3 | | | 95,000 | | | | 113,588 | |
Monroe NC Limited Obligation | | | 5.000 | | | | 03/01/2029 | | | Aa3 | | | 195,000 | | | | 232,560 | |
NC Municipal Power Agency #1 Catawba Electric | | | 5.000 | | | | 01/01/2028 | | | A* | | | 125,000 | | | | 157,210 | |
NC Municipal Power Agency #1 Catawba Electric | | | 5.000 | | | | 01/01/2028 | | | A* | | | 125,000 | | | | 148,174 | |
Pender County NC Limited Obligation | | | 5.000 | | | | 06/01/2027 | | | Aa3 | | | 100,000 | | | | 124,890 | |
Pender County NC Limited Obligation | | | 5.000 | | | | 06/01/2028 | | | Aa3 | | | 100,000 | | | | 128,139 | |
Warren County NC Limited Obligation | | | 5.000 | | | | 06/01/2027 | | | A1 | | | 160,000 | | | | 186,755 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 2,188,011 | |
| SCHOOL IMPROVEMENT BONDS | | | | | | | | | | | | | | | | | | |
| 11.02% of Net Assets | | | | | | | | | | | | | | | | | | |
Onslow County NC Limted Obligation | | | 5.000 | | | | 06/01/2023 | | | Aa2 | | | 250,000 | | | | 272,978 | |
Randolph County NC Limited Obligation | | | 5.000 | | | | 10/01/2025 | | | Aa3 | | | 250,000 | | | | 297,277 | |
Rutherford County NC Limited Obligation | | | 5.000 | | | | 03/01/2028 | | | A1 | | | 75,000 | | | | 95,306 | |
Scotland County NC | | | 5.000 | | | | 12/01/2025 | | | A* | | | 270,000 | | | | 317,471 | |
Scotland County NC | | | 5.000 | | | | 12/01/2026 | | | A* | | | 250,000 | | | | 303,063 | |
Scotland County NC | | | 5.000 | | | | 12/01/2027 | | | A* | | | 140,000 | | | | 173,261 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,459,356 | |
| PUBLIC FACILITIES REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 8.14% of Net Assets | | | | | | | | | | | | | | | | | | |
Buncombe County NC Limited Obligation** | | | 5.000 | | | | 06/01/2028 | | | Aa1 | | | 500,000 | | | | 584,670 | |
Charlotte NC Certificate of Participation | | | 4.000 | | | | 12/01/2022 | | | Aa1 | | | 170,000 | | | | 172,744 | |
Monroe NC Limited Obligation | | | 5.000 | | | | 04/01/2026 | | | AA* | | | 265,000 | | | | 319,966 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,077,380 | |
| PREREFUNDED BONDS | | | | | | | | | | | | | | | | | | |
| 4.53% of Net Assets | | | | | | | | | | | | | | | | | | |
North Carolina State Medical Care Commission Vidant Health | | | 5.000 | | | | 06/01/2028 | | | A2 | | | 180,000 | | | | 211,630 | |
Union County NC Enterprise System Revenue | | | 4.000 | | | | 12/01/2022 | | | Aa2 | | | 100,000 | | | | 101,609 | |
Watauga NC Public Facillities Corporation Limited Obligation | | | 5.000 | | | | 06/01/2023 | | | Aa3 | | | 275,000 | | | | 287,172 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 600,411 | |
The accompanying footnotes are an integral part of the financial statements.
30
DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE SHORT-TO-MEDIUM SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
North Carolina Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
| TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 3.88% of Net Assets | | | | | | | | | | | | | | | | | | |
NC State Grant Anticipation Revenue Vehicle | | | 5.000 | % | | | 03/01/2029 | | | A2 | | $ | 120,000 | | | $ | 138,802 | |
North Carolina State Anticipation Revenue Garvee | | | 5.000 | | | | 03/01/2029 | | | A2 | | | 20,000 | | | | 25,977 | |
North Carolina Turnpike Authority | | | 5.000 | | | | 01/01/2029 | | | A2 | | | 285,000 | | | | 348,797 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 513,576 | |
| HOSPITAL AND HEALTHCARE REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 3.53% of Net Assets | | | | | | | | | | | | | | | | | | |
Charlotte-Mecklenburg NC Hospital Authority Health Care System | | | 5.000 | | | | 01/15/2028 | | | Aa3 | | | 225,000 | | | | 268,731 | |
NC State Medical Care Commission Health Care Facilities | | | 4.000 | | | | 06/01/2024 | | | A2 | | | 180,000 | | | | 198,844 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 467,575 | |
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS | | | | | | | | | | | | | | | | | | |
| 2.43% of Net Assets | | | | | | | | | | | | | | | | | | |
Wilmington NC Limited Obligation | | | 4.000 | | | | 06/01/2029 | | | Aa1 | | | 150,000 | | | | 184,950 | |
Winston Salem NC Limited Obligation | | | 5.000 | | | | 06/01/2023 | | | Aa1 | | | 125,000 | | | | 136,565 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 321,515 | |
| AD VALOREM PROPERTY BONDS | | | | | | | | | | | | | | | | | | |
| 2.11% of Net Assets | | | | | | | | | | | | | | | | | | |
Smithville Township NC** | | | 5.000 | | | | 06/01/2024 | | | Aa3 | | | 250,000 | | | | 278,700 | |
| | | | | | | | | | | | | | | | | | |
| LEASE REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 1.94% of Net Assets | | | | | | | | | | | | | | | | | | |
Edgecombe County NC Limited Obligation** | | | 4.000 | | | | 06/01/2022 | | | A2 | | | 250,000 | | | | 257,430 | |
| | | | | | | | | | | | | | | | | | |
| ESCROWED TO MATURITY BONDS | | | | | | | | | | | | | | | | | | |
| 1.71% of Net Assets | | | | | | | | | | | | | | | | | | |
NC Eastern Municipal Power Agency | | | 6.000 | | | | 01/01/2022 | | | A3 | | | 220,000 | | | | 226,433 | |
| | | | | | | | | | | | | | | | | | |
| AIRPORT REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| .76% of Net Assets | | | | | | | | | | | | | | | | | | |
Charlotte NC Airport | | | 5.000 | | | | 07/01/2030 | | | Aa3 | | | 75,000 | | | | 100,538 | |
| | | | | | | | | | | | | | | | | | |
Total Investments (cost $12,237,261 (See (a) below for further explanation) 97.75% of Net Assets | | | | | | $ | 12,941,271 | |
| | | | | | | | | | | | | | | | | | |
Other assets in excess of liabilities 2.25% | | | | | | | | | | | | | | | | | 298,426 | |
| | | | | | | | | | | | | | | | | | |
Net Assets 100% | | | | | | | | | | | | | | | | $ | 13,239,697 | |
| | | | | | | | | | | | | | | | | | |
| | # | | Ratings by Moody’s Investors Service unless noted otherwise. |
| | | | Bond ratings are unaudited and not covered by Report of Independent Registered Public Accounting Firm. |
| | | | 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 |
| | ** | | Security is segregated — see footnote 7 |
| (a) | | Cost for federal income tax purposes is $12,237,261 and net unrealized appreciation of investments is as follows: |
| | | | | | |
| | Unrealized appreciation | | $ | 707,467 | |
| | Unrealized depreciation | | | (3,457 | ) |
| | | | | | |
| | Net unrealized appreciation | | $ | 704,010 | |
| | | | | | |
Other Information
The following is a summary of the inputs used, as of June 30, 2021, 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 | | | 12,941,271 | |
Level 3 | | Significant Unobservable Inputs | | | — | |
| | | | | | |
| | | | $ | 12,941,271 | |
| | | | | | |
The accompanying footnotes are an integral part of the financial statements.
31
NORTH CAROLINA TAX-FREE SHORT-TO-MEDIUM SERIES
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2021
| | | | | | | | |
ASSETS: | | | | | | | | |
Investments in securities, at fair value (Cost: $12,237,261) | | | | | | $ | 12,941,271 | |
Cash | | | | | | | 227,984 | |
Interest receivable | | | | | | | 103,416 | |
| | | | | | | | |
Total assets | | | | | | | 13,272,671 | |
LIABILITIES: | | | | | | | | |
Payable for: | | | | | | | | |
Distributions to shareholders | | | 4,382 | | | | | |
Fund shares redeemed | | | 2,372 | | | | | |
Investment advisory fee | | | 3,227 | | | | | |
Transfer agent fee | | | 1,606 | | | | | |
Professional fees | | | 4,126 | | | | | |
Audit fees | | | 3,358 | | | | | |
Custodian expense | | | 2,159 | | | | | |
Trustees fees | | | 1,566 | | | | | |
Accrued expenses | | | 10,178 | | | | | |
| | | | | | | | |
Total liabilities | | | | | | | 32,974 | |
| | | | | | | | |
NET ASSETS: | | | | | | | | |
Capital | | | | | | | 12,535,639 | |
Total distributable earnings | | | | | | | 704,058 | |
| | | | | | | | |
Net assets at value | | | | | | $ | 13,239,697 | |
| | | | | | | | |
NET ASSET VALUE, offering price and redemption price per share
(1,185,274 shares outstanding; unlimited number of shares authorized; no par value) | | | | | | $ | 11.17 | |
| | | | | | | | |
STATEMENT OF OPERATIONS
For the year ended June 30, 2021
| | | | |
Net investment income: | |
Interest income | | $ | 299,381 | |
| | | | |
Expenses: | |
Investment advisory fee | | | 66,115 | |
Transfer agent fee | | | 19,835 | |
Registration fees | | | 9,182 | |
Compliance fees | | | 7,014 | |
Custodian expense | | | 6,751 | |
Pricing fees | | | 5,701 | |
Professional fees | | | 3,032 | |
Trustees fees | | | 1,394 | |
Other expenses | | | 5,978 | |
| | | | |
Total expenses | | | 125,002 | |
Fees waived by Adviser (Note 2) | | | (32,485 | ) |
Custodian expense reduction (Note 7) | | | (28 | ) |
| | | | |
Net expenses | | | 92,489 | |
| | | | |
Net investment income | | | 206,892 | |
| | | | |
Realized and unrealized gain on investments: | | | | |
Net realized gain | | | 48 | |
Net change in unrealized appreciation/depreciation | | | (31,639 | ) |
| | | | |
Net realized and unrealized gain on investments | | | (31,591 | ) |
| | | | |
Net increase in net assets resulting from operations | | $ | 175,301 | |
| | | | |
The accompanying footnotes are an integral part of the financial statements.
32
NORTH CAROLINA TAX-FREE SHORT-TO-MEDIUM SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended June 30, 2021 and 2020
| | | | | | | | |
| | | 2021 | | | 2020 | |
Operations: | | | | | | | | |
Net investment income | | $ | 206,892 | | | $ | 274,467 | |
Net realized gain on investments | | | 48 | | | | 151,048 | |
Net change in unrealized appreciation/depreciation | | | (31,639 | ) | | | 80,007 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 175,301 | | | | 505,522 | |
Total distributions (Note 6) | | | (208,402 | ) | | | (274,467 | ) |
Net Fund share transactions (Note 4) | | | 295,632 | | | | (6,757,665 | ) |
| | | | | | | | |
Total increase/(decrease) | | | 262,531 | | | | (6,526,610 | ) |
Net assets: | | | | | | | | |
Beginning of year | | | 12,977,166 | | | | 19,503,776 | |
| | | | | | | | |
End of year | | $ | 13,239,697 | | | $ | 12,977,166 | |
| | | | | | | | |
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Selected data for a share outstanding: | | For the years ended June 30, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
Net asset value, beginning of year | | | $11.20 | | | | $11.02 | | | | $10.64 | | | | $10.85 | | | | $11.05 | |
| | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.18 | | | | 0.17 | | | | 0.17 | | | | 0.16 | | | | 0.16 | |
Net gains/(losses) on investments | | | (0.03 | ) | | | 0.18 | | | | 0.38 | | | | (0.21 | ) | | | (0.20 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.15 | | | | 0.35 | | | | 0.55 | | | | (0.05 | ) | | | (0.04 | ) |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income | | | (0.18 | ) | | | (0.17 | ) | | | (0.17 | ) | | | (0.16 | ) | | | (0.16 | ) |
Distributions from capital gains | | | 0.00 | (b) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, end of year | | | $11.17 | | | | $11.20 | | | | $11.02 | | | | $10.64 | | | | $10.85 | |
| | | | | | | | | | | | | | | | | | | | |
Total return | | | 1.32% | | | | 3.24% | | | | 5.19% | | | | (0.45)% | | | | (0.33)% | |
Net assets, end of year (in thousands) | | | $13,240 | | | | $12,977 | | | | $19,504 | | | | $22,267 | | | | $21,930 | |
Ratio of net expenses to average net assets (a) | | | 0.70% | | | | 0.70% | | | | 0.70% | | | | 0.70% | | | | 0.73% | |
Ratio of gross expenses to average net assets | | | 0.95% | | | | 0.91% | | | | 0.88% | | | | 0.86% | | | | 0.82% | |
Ratio of net investment income to average net assets | | | 1.56% | | | | 1.56% | | | | 1.55% | | | | 1.50% | | | | 1.49% | |
Portfolio turnover | | | 1.94% | | | | 9.59% | | | | 13.59% | | | | 21.80% | | | | 11.15% | |
| (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. |
The accompanying footnotes are an integral part of the financial statements.
33
DUPREE MUTUAL FUNDS — TENNESSEE TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Tennessee Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
| MUNICIPAL UTILITY REVENUE BONDS | | | | | | | | | | | |
| 33.39% of Net Assets | | | | | | | | | | | | | | | | | | |
Bristol TN Electric Revenue | | | 5.000 | % | | | 09/01/2038 | | | AA-* | | $ | 1,525,000 | | | $ | 1,669,052 | |
Chattanooga TN Electric Revenue | | | 5.000 | | | | 09/01/2035 | | | AA* | | | 250,000 | | | | 293,983 | |
Chattanooga TN Electric Revenue | | | 5.000 | | | | 09/01/2040 | | | AA* | | | 2,325,000 | | | | 2,727,760 | |
Clarksville TN Electric System Revenue | | | 4.000 | | | | 09/01/2034 | | | Aa2 | | | 500,000 | | | | 585,930 | |
Clarksville TN Water Sewer & Gas Revenue | | | 4.000 | | | | 02/01/2036 | | | Aa2 | | | 1,475,000 | | | | 1,736,798 | |
Clarksville TN Water Sewer & Gas Revenue | | | 4.000 | | | | 02/01/2038 | | | Aa2 | | | 820,000 | | | | 962,705 | |
Columbia TN Waterworks Revenue | | | 5.000 | | | | 12/01/2032 | | | Aa3 | | | 885,000 | | | | 902,231 | |
Franklin TN Water & Sewer Revenue and Tax Authority | | | 5.000 | | | | 04/01/2024 | | | Aaa | | | 750,000 | | | | 847,448 | |
Franklin TN Water & Sewer System Revenue | | | 4.000 | | | | 02/01/2036 | | | Aa3 | | | 250,000 | | | | 288,295 | |
Hallsdale-Powell TN Utility District Knox County Water & Sewer | | | 4.000 | | | | 04/01/2035 | | | AA* | | | 315,000 | | | | 358,911 | |
Hallsdale-Powell TN Utility District Knox County Water & Sewer | | | 4.000 | | | | 04/01/2038 | | | AA* | | | 1,000,000 | | | | 1,137,400 | |
Harpeth Valley TN Utilities District | | | 5.000 | | | | 09/01/2034 | | | AA+* | | | 500,000 | | | | 569,640 | |
Harpeth Valley TN Utilities District | | | 5.000 | | | | 09/01/2040 | | | AA+* | | | 1,000,000 | | | | 1,053,000 | |
Harpeth Valley Utilities | | | 4.000 | | | | 09/01/2045 | | | AA+* | | | 150,000 | | | | 177,716 | |
Harpeth Valley Utilities | | | 4.000 | | | | 09/01/2050 | | | AA+* | | | 250,000 | | | | 294,935 | |
Knox Chapman TN Utility District | | | 4.500 | | | | 01/01/2027 | | | AA-* | | | 1,000,000 | | | | 1,062,620 | |
Knox Chapman TN Utility District | | | 5.000 | | | | 01/01/2031 | | | AA-* | | | 250,000 | | | | 286,570 | |
Knox Chapman TN Utility District | | | 5.000 | | | | 01/01/2033 | | | AA-* | | | 250,000 | | | | 286,853 | |
Memphis TN Gas System Revenue | | | 4.000 | | | | 12/01/2034 | | | Aa1 | | | 775,000 | | | | 896,900 | |
Memphis TN Gas System Revenue | | | 4.000 | | | | 12/01/2036 | | | Aa1 | | | 800,000 | | | | 937,992 | |
Memphis TN Gas System Revenue ** | | | 4.000 | | | | 12/01/2037 | | | Aa1 | | | 1,310,000 | | | | 1,535,962 | |
Memphis TN Storm Water System Revenue | | | 5.000 | | | | 10/01/2038 | | | Aa3 | | | 500,000 | | | | 619,900 | |
Metropolitan Government Nashville & Davidson County Electric | | | 5.000 | | | | 05/15/2036 | | | AA* | | | 500,000 | | | | 563,375 | |
Metropolitan Government Nashville & Davidson County Electric | | | 5.000 | | | | 05/15/2039 | | | AA* | | | 500,000 | | | | 562,460 | |
Metropolitan Government Nashville & Davidson County Water & Sewer ** | | | 5.000 | | | | 07/01/2030 | | | Aa2 | | | 3,250,000 | | | | 3,547,241 | |
Metropolitan Government Nashville & Davidson County Water & Sewer | | | 5.000 | | | | 07/01/2031 | | | Aa2 | | | 500,000 | | | | 545,520 | |
Metropolitan Government Nashville & Davidson County Water & Sewer | | | 5.000 | | | | 07/01/2033 | | | Aa2 | | | 575,000 | | | | 627,348 | |
Metropolitan Government Nashville & Davidson County Water & Sewer | | | 5.000 | | | | 07/01/2037 | | | Aa2 | | | 250,000 | | | | 308,285 | |
Metropolitan Government Nashville & Davidson County Water & Sewer ** | | | 5.000 | | | | 07/01/2040 | | | Aa2 | | | 2,265,000 | | | | 2,470,730 | |
Watauga River Regional Water Authority TN Waterworks | | | 4.000 | | | | 07/01/2037 | | | A* | | | 270,000 | | | | 310,786 | |
Williamson County Utilities | | | 4.000 | | | | 09/01/2041 | | | AA* | | | 500,000 | | | | 591,125 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 28,759,471 | |
| SCHOOL IMPROVEMENT BONDS | | | | | | | | | | | | | | | | | | |
| 13.79% of Net Assets | | | | | | | | | | | | | | | | | | |
Coffee County TN | | | 4.000 | | | | 06/01/2037 | | | AA-* | | | 500,000 | | | | 593,005 | |
Coffee County TN | | | 4.000 | | | | 06/01/2041 | | | AA-* | | | 620,000 | | | | 728,246 | |
Franklin TN Special School District | | | 5.000 | | | | 06/01/2039 | | | Aa1 | | | 250,000 | | | | 318,963 | |
Franklin TN Special School District | | | 4.000 | | | | 06/01/2046 | | | Aa1 | | | 750,000 | | | | 910,658 | |
Johnson City TN | | | 4.000 | | | | 06/01/2036 | | | Aa2 | | | 1,150,000 | | | | 1,372,433 | |
Montgomery County TN | | | 4.000 | | | | 04/01/2036 | | | AA* | | | 260,000 | | | | 301,917 | |
Montgomery County TN | | | 4.000 | | | | 04/01/2037 | | | AA* | | | 1,920,000 | | | | 2,226,045 | |
Rhea County TN ** | | | 5.000 | | | | 04/01/2029 | | | A1 | | | 1,385,000 | | | | 1,434,542 | |
Shelby County TN | | | 5.000 | | | | 04/01/2037 | | | Aa1 | | | 500,000 | | | | 615,620 | |
Wilson County TN | | | 4.000 | | | | 04/01/2039 | | | AA+* | | | 1,495,000 | | | | 1,705,646 | |
Wilson County TN 10th Special School District | | | 4.000 | | | | 04/01/2033 | | | AA-* | | | 655,000 | | | | 774,079 | |
Wilson County TN 10th Special School District | | | 4.000 | | | | 04/01/2037 | | | AA-* | | | 200,000 | | | | 237,590 | |
Wilson County TN 10th Special School District | | | 4.000 | | | | 04/01/2039 | | | AA-* | | | 550,000 | | | | 648,511 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 11,867,255 | |
| PREREFUNDED BONDS | | | | | | | | | | | | | | | | | | |
| 11.55% of Net Assets | | | | | | | | | | | | | | | | | | |
Clarksville TN Water Sewer & Gas Revenue | | | 5.000 | | | | 02/01/2033 | | | Aa2 | | | 500,000 | | | | 538,235 | |
Clarksville TN Water Sewer & Gas Revenue | | | 5.000 | | | | 02/01/2038 | | | Aa2 | | | 1,000,000 | | | | 1,076,310 | |
Gallatin TN Water & Sewer Revenue | | | 5.000 | | | | 01/01/2032 | | | AA* | | | 235,000 | | | | 269,289 | |
Johnson City TN Health & Educational Facilities Escrowed | | | 5.125 | | | | 07/01/2025 | | | NR | | | 40,000 | | | | 40,084 | |
Memphis TN Electric System Revenue | | | 5.000 | | | | 12/01/2031 | | | Aa2 | | | 225,000 | | | | 261,032 | |
Memphis TN Electric System Revenue | | | 5.000 | | | | 12/01/2034 | | | Aa2 | | | 1,250,000 | | | | 1,450,173 | |
The accompanying footnotes are an integral part of the financial statements.
34
DUPREE MUTUAL FUNDS — TENNESSEE TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Tennessee Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
Shelby County TN Health Education & Housing Facilities | | | 5.000 | % | | | 05/01/2027 | | | A1 | | $ | 750,000 | | | $ | 779,543 | |
Shelby County TN Health Education & Housing Facilities Board Rhodes College | | | 5.000 | | | | 08/01/2040 | | | A2 | | | 650,000 | | | | 753,838 | |
TN State School Bond Authority Higher Educational Facilities | | | 5.000 | | | | 11/01/2037 | | | Aa1 | | | 700,000 | | | | 808,115 | |
TN State School Bond Authority Higher Educational Facilities | | | 5.000 | | | | 11/01/2040 | | | Aa1 | | | 2,000,000 | | | | 2,388,420 | |
TN State School Bond Authority Higher Educational Facilities | | | 5.000 | | | | 11/01/2043 | | | Aa1 | | | 1,000,000 | | | | 1,064,290 | |
Watauga River TN Regional Water Authority Waterworks | | | 5.000 | | | | 07/01/2034 | | | A* | | | 500,000 | | | | 523,460 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 9,952,789 | |
| PUBLIC FACILITIES REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 11.50% of Net Assets | | | | | | | | | | | | | | | | | | |
Memphis Shelby County TN Industrial Development Board | | | 5.000 | | | | 11/01/2030 | | | Aa3 | | | 1,250,000 | | | | 1,513,513 | |
Memphis TN Refunding General Improvement | | | 5.000 | | | | 04/01/2031 | | | Aa2 | | | 800,000 | | | | 898,056 | |
Metropolitan Government Nashville & Davidson County Convention Center | | | 5.000 | | | | 07/01/2026 | | | A1 | | | 630,000 | | | | 631,750 | |
Metropolitan Government Nashville & Davidson County Sports Authority | | | 5.000 | | | | 08/01/2031 | | | Aa3 | | | 1,500,000 | | | | 1,650,810 | |
Metropolitan Government Nashville & Davidson County Sports Authority | | | 5.000 | | | | 08/01/2038 | | | Aa3 | | | 755,000 | | | | 830,908 | |
Pigeon Forge Industrial Development Board | | | 5.000 | | | | 06/01/2027 | | | AA* | | | 1,400,000 | | | | 1,404,928 | |
Pigeon Forge Industrial Development Board ** | | | 5.000 | | | | 06/01/2029 | | | AA* | | | 2,120,000 | | | | 2,127,441 | |
Pigeon Forge Industrial Development Board | | | 5.000 | | | | 06/01/2034 | | | AA* | | | 850,000 | | | | 853,018 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 9,910,424 | |
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS | | | | | | | | | | | | | | | | | | |
| 8.76% of Net Assets | | | | | | | | | | | | | | | | | | |
Memphis Shelby County TN Port Authority Community Development | | | 5.000 | | | | 04/01/2035 | | | Aa3 | | | 625,000 | | | | 627,375 | |
Memphis TN | | | 4.000 | | | | 06/01/2041 | | | Aa2 | | | 1,120,000 | | | | 1,272,812 | |
Memphis TN Refunding and General Impact General Obligation | | | 5.000 | | | | 05/01/2036 | | | Aa2 | | | 850,000 | | | | 852,542 | |
Metropolitan Government Nashville & Davidson County TN | | | 4.000 | | | | 07/01/2033 | | | Aa2 | | | 1,470,000 | | | | 1,729,132 | |
Metropolitan Government Nashville & Davidson County TN | | | 4.000 | | | | 07/01/2034 | | | Aa2 | | | 500,000 | | | | 587,500 | |
Metropolitan Government Nashville & Davidson County TN | | | 4.000 | | | | 07/01/2036 | | | Aa2 | | | 500,000 | | | | 600,080 | |
TN State Series A | | | 5.000 | | | | 02/01/2036 | | | Aaa | | | 1,500,000 | | | | 1,879,320 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 7,548,761 | |
| HOSPITAL AND HEALTHCARE REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 7.63% of Net Assets | | | | | | | | | | | | | | | | | | |
Metropolitan Government Nashville & Davidson County TN Health | | | 5.000 | | | | 07/01/2035 | | | A3 | | | 2,500,000 | | | | 3,000,300 | |
Metropolitan Government Nashville & Davidson County TN Health | | | 5.000 | | | | 07/01/2040 | | | A3 | | | 950,000 | | | | 1,134,462 | |
Shelby County TN Health Education & Housing Facilities | | | 5.000 | | | | 05/01/2036 | | | A1 | | | 1,535,000 | | | | 1,838,853 | |
Shelby County TN Health Education & Housing Facilities — LeBonheur | | | 5.000 | | | | 05/01/2035 | | | A1 | | | 500,000 | | | | 598,975 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 6,572,590 | |
| REFUNDING BONDS | | | | | | | | | | | | | | | | | | |
| 5.53% of Net Assets | | | | | | | | | | | | | | | | | | |
Blount County TN | | | 5.000 | | | | 06/01/2037 | | | Aa2 | | | 1,000,000 | | | | 1,200,060 | |
Jackson TN Refunding | | | 4.000 | | | | 06/01/2037 | | | AA* | | | 405,000 | | | | 481,667 | |
Memphis TN General Improvement | | | 5.000 | | | | 04/01/2034 | | | Aa2 | | | 500,000 | | | | 560,260 | |
Memphis TN General Improvement | | | 5.000 | | | | 04/01/2039 | | | Aa2 | | | 250,000 | | | | 279,840 | |
Memphis TN Refunding | | | 5.000 | | | | 04/01/2030 | | | Aa2 | | | 1,000,000 | | | | 1,123,750 | |
Memphis TN Refunding | | | 5.000 | | | | 04/01/2033 | | | Aa2 | | | 250,000 | | | | 280,205 | |
Memphis TN Refunding | | | 5.000 | | | | 04/01/2035 | | | Aa2 | | | 250,000 | | | | 279,985 | |
Memphis TN Refunding | | | 5.000 | | | | 04/01/2040 | | | Aa2 | | | 500,000 | | | | 559,530 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 4,765,297 | |
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS | | | | | | | | | | | |
| 4.00% of Net Assets | | | | | | | | | | | | | | | | | | |
Franklin County TN Health & Education Facilities Board Revenue | | | 5.000 | | | | 09/01/2030 | | | A+* | | | 200,000 | | | | 210,746 | |
Shelby County TN Health Education & Housing Facilities Board Rhodes College | | | 4.000 | | | | 08/01/2040 | | | A2 | | | 875,000 | | | | 999,880 | |
Shelby County TN Health Education & Housing Facilities Board Rhodes College | | | 4.000 | | | | 08/01/2036 | | | A2 | | | 920,000 | | | | 1,056,868 | |
Shelby County TN Health Education & Housing Facilities Board Rhodes College | | | 4.000 | | | | 08/01/2037 | | | A2 | | | 1,030,000 | | | | 1,181,153 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 3,448,647 | |
The accompanying footnotes are an integral part of the financial statements.
35
DUPREE MUTUAL FUNDS — TENNESSEE TAX-FREE INCOME SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Tennessee Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
| AIRPORT REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 2.99% of Net Assets | | | | | | | | | | | | | | | | | | |
Metropolitan Nashville Airport Authority | | | 5.000 | % | | | 07/01/2034 | | | A1 | | $ | 800,000 | | | $ | 936,584 | |
Metropolitan Nashville Airport Authority | | | 5.000 | | | | 07/01/2035 | | | A1 | | | 250,000 | | | | 292,143 | |
Metropolitan Nashville Airport Authority | | | 5.000 | | | | 07/01/2040 | | | A1 | | | 1,160,000 | | | | 1,350,553 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 2,579,280 | |
Total Investments (cost $79,349,895) (See (a) below for further explanation) 99.14% of Net Assets | | | | | | | | | $ | 85,404,514 | |
| | | | | | | | | | | | | | | | | | |
Other assets in excess of liabilities .86% | | | | | | | | | | | | | | | | | 742,268 | |
| | | | | | | | | | | | | | | | | | |
Net Assets 100% | | | | | | | | | | | | | | | | $ | 86,146,782 | |
| | | | | | | | | | | | | | | | | | |
| | # | | Ratings by Moody’s Investors Service unless noted otherwise. |
| | | | Bond ratings are unaudited and not covered by Report of Independent Registered Public Accounting Firm. |
| | | | 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 |
| | ** | | Security is segregated — see footnote 7 |
| (a) | | Cost for federal income tax purposes is $79,349,895 and net unrealized appreciation of investments is as follows: |
| | | | | | |
| | Unrealized appreciation | | $ | 6,054,619 | |
| | Unrealized depreciation | | | — | |
| | | | | | |
| | Net unrealized appreciation | | $ | 6,054,619 | |
| | | | | | |
Other Information
The following is a summary of the inputs used, as of June 30, 2021, 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 | | | 85,404,514 | |
Level 3 | | Significant Unobservable Inputs | | | — | |
| | | | | | |
| | | | $ | 85,404,514 | |
| | | | | | |
The accompanying footnotes are an integral part of the financial statements.
36
TENNESSEE TAX-FREE INCOME SERIES
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2021
| | | | | | | | |
ASSETS: | | | | | | | | |
Investments in securities, at fair value (Cost: $79,349,895) | | | | | | $ | 85,404,514 | |
Cash | | | | | | | 12,259 | |
Interest receivable | | | | | | | 1,053,152 | |
| | | | | | | | |
Total assets | | | | | | | 86,469,925 | |
LIABILITIES: | | | | | | | | |
Payable for: | | | | | | | | |
Distributions to shareholders | | | 214,004 | | | | | |
Fund shares redeemed | | | 33,356 | | | | | |
Investment advisory fee | | | 37,265 | | | | | |
Transfer agent fee | | | 9,314 | | | | | |
Professional fees | | | 18,225 | | | | | |
Custodian expense | | | 3,341 | | | | | |
Trustees fees | | | 2,258 | | | | | |
Accrued expenses | | | 5,380 | | | | | |
| | | | | | | | |
Total liabilities | | | | | | | 323,143 | |
| | | | | | | | |
NET ASSETS: | | | | | | | | |
Capital | | | | | | | 80,264,556 | |
Total distributable earnings | | | | | | | 5,882,226 | |
| | | | | | | | |
Net assets at value | | | | | | $ | 86,146,782 | |
| | | | | | | | |
NET ASSET VALUE, offering price and redemption price per share
(7,356,238 shares outstanding; unlimited number of shares authorized; no par value) | | | | | | $ | 11.71 | |
| | | | | | | | |
STATEMENT OF OPERATIONS
For the year ended June 30, 2021
| | | | |
Net investment income: | |
Interest income | | $ | 2,785,678 | |
| | | | |
Expenses: | |
Investment advisory fee | | | 457,750 | |
Transfer agent fee | | | 115,860 | |
Professional fees | | | 21,165 | |
Custodian expense | | | 14,989 | |
Compliance fees | | | 6,501 | |
Trustees fees | | | 9,709 | |
Pricing fees | | | 8,371 | |
Registration expense | | | 4,524 | |
Other expenses | | | 10,206 | |
| | | | |
Total expenses | | | 649,075 | |
Fees waived by Adviser (Note 2) | | | (9,565 | ) |
Custodian expense reduction (Note 7) | | | (62 | ) |
| | | | |
Net expenses | | | 639,448 | |
| | | | |
Net investment income | | | 2,146,230 | |
| | | | |
Realized and unrealized gain on investments: | | | | |
Net realized gain | | | 156,369 | |
Net change in unrealized appreciation/depreciation | | | 268,393 | |
| | | | |
Net realized and unrealized gain on investments | | | 424,762 | |
| | | | |
Net increase in net assets resulting from operations | | $ | 2,570,992 | |
| | | | |
The accompanying footnotes are an integral part of the financial statements.
37
TENNESSEE TAX-FREE INCOME SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended June 30, 2021 and 2020
| | | | | | | | |
| | | 2021 | | | 2020 | |
Operations: | | | | | | | | |
Net investment income | | $ | 2,146,230 | | | $ | 2,425,813 | |
Net realized gain on investments | | | 156,369 | | | | 122,701 | |
Net change in unrealized appreciation/depreciation | | | 268,393 | | | | 1,102,071 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 2,570,992 | | | | 3,650,585 | |
Total distributions (Note 6) | | | (2,169,427 | ) | | | (2,425,813 | ) |
Net Fund share transactions (Note 4) | | | (9,934,989 | ) | | | (9,751,519 | ) |
| | | | | | | | |
Total decrease | | | (9,533,424 | ) | | | (8,526,747 | ) |
Net assets: | | | | | | | | |
Beginning of year | | | 95,680,206 | | | | 104,206,953 | |
| | | | | | | | |
End of year | | $ | 86,146,782 | | | $ | 95,680,206 | |
| | | | | | | | |
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Selected data for a share outstanding: | | For the years ended June 30, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
Net asset value, beginning of year | | $ | 11.66 | | | $ | 11.51 | | | $ | 11.24 | | | $ | 11.44 | | | $ | 11.89 | |
| | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.27 | | | | 0.28 | | | | 0.30 | | | | 0.31 | | | | 0.33 | |
Net gains/(losses) on investments | | | 0.05 | | | | 0.15 | | | | 0.27 | | | | (0.20 | ) | | | (0.45 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.32 | | | | 0.43 | | | | 0.57 | | | | 0.11 | | | | (0.12 | ) |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income | | | (0.27 | ) | | | (0.28 | ) | | | (0.30 | ) | | | (0.31 | ) | | | (0.33 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, end of year | | $ | 11.71 | | | $ | 11.66 | | | $ | 11.51 | | | $ | 11.24 | | | $ | 11.44 | |
| | | | | | | | | | | | | | | | | | | | |
Total return | | | 2.84% | | | | 3.77% | | | | 5.12% | | | | 0.94% | | | | (1.03)% | |
Net assets, end of year (in thousands) | | $ | 86,147 | | | $ | 95,680 | | | $ | 104,207 | | | $ | 108,121 | | | $ | 108,260 | |
Ratio of net expenses to average net assets (a) | | | 0.70% | | | | 0.70% | | | | 0.70% | | | | 0.70% | | | | 0.70% | |
Ratio of gross expenses to average net assets | | | 0.71% | | | | 0.71% | | | | 0.71% | | | | 0.71% | | | | 0.71% | |
Ratio of net investment income to average net assets | | | 2.35% | | | | 2.42% | | | | 2.63% | | | | 2.70% | | | | 2.82% | |
Portfolio turnover | | | 2.75% | | | | 3.46% | | | | 6.46% | | | | 15.77% | | | | 9.27% | |
| (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. |
The accompanying footnotes are an integral part of the financial statements.
38
DUPREE MUTUAL FUNDS — TENNESSEE TAX-FREE SHORT-TO-MEDIUM SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Tennessee Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
| PUBLIC FACILITIES REVENUE BONDS | | | | | | | | | | | |
| 22.99% of Net Assets | | | | | | | | | | | | | | | | | | |
Memphis TN Center City Revenue Finance Corporation Sports Facility | | | 4.000 | % | | | 02/01/2022 | | | Aa3 | | $ | 220,000 | | | $ | 224,961 | |
Memphis-Shelby County TN Industrial Development Board | | | 5.000 | | | | 11/01/2024 | | | Aa3 | | | 250,000 | | | | 287,800 | |
Metropolitan Government Nashville & Davidson County TN Sports Authority | | | 5.000 | | | | 07/01/2023 | | | Aa3 | | | 125,000 | | | | 136,723 | |
Metropolitan Government Nashville & Davidson County TN Sports Authority | | | 5.250 | | | | 08/01/2024 | | | Aa3 | | | 190,000 | | | | 210,049 | |
Metropolitan Government Nashville & Davidson County TN Sports Authority | | | 5.250 | | | | 08/01/2025 | | | Aa3 | | | 195,000 | | | | 215,619 | |
Metropolitan Government Nashville & Davidson County TN Sports Authority | | | 5.250 | | | | 08/01/2026 | | | Aa3 | | | 100,000 | | | | 110,485 | |
Pigeon Forge Industrial Development Board | | | 5.000 | | | | 06/01/2024 | | | AA* | | | 175,000 | | | | 175,648 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,361,285 | |
| MUNICIPAL UTILITY REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 22.53% of Net Assets | | | | | | | | | | | | | | | | | | |
Chattanooga TN Electric Revenue ** | | | 5.000 | | | | 09/01/2023 | | | AA* | | | 250,000 | | | | 275,905 | |
Erwin TN Utilities Authority Electric System | | | 5.000 | | | | 09/01/2026 | | | A* | | | 50,000 | | | | 60,191 | |
Hallsdale-Powell TN Utility District | | | 4.000 | | | | 04/01/2028 | | | AA* | | | 255,000 | | | | 294,525 | |
Maryville TN | | | 4.000 | | | | 06/01/2029 | | | Aa3 | | | 250,000 | | | | 289,430 | |
Metropolitan Government Nashville & Davidson County TN Water & Sewer | | | 5.000 | | | | 07/01/2026 | | | Aa2 | | | 100,000 | | | | 109,505 | |
Springfield TN | | | 5.000 | | | | 06/01/2027 | | | Aa3 | | | 245,000 | | | | 305,498 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,335,054 | |
| REFUNDING BONDS | | | | | | | | | | | | | | | | | | |
| 21.16% of Net Assets | | | | | | | | | | | | | | | | | | |
Maryville TN | | | 5.000 | | | | 06/01/2026 | | | Aa3 | | | 350,000 | | | | 425,110 | |
Memphis TN General Improvement ** | | | 5.000 | | | | 11/01/2023 | | | Aa2 | | | 350,000 | | | | 388,612 | |
Memphis-Shelby County TN Industrial Development Board | | | 5.000 | | | | 11/01/2027 | | | Aa3 | | | 200,000 | | | | 243,092 | |
Metropolitan Government Nashville & Davidson County TN | | | 4.000 | | | | 07/01/2024 | | | Aa2 | | | 80,000 | | | | 83,085 | |
Putnam County TN | | | 4.000 | | | | 04/01/2025 | | | Aa2 | | | 100,000 | | | | 113,235 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,253,134 | |
| SCHOOL IMPROVEMENT BONDS | | | | | | | | | | | | | | | | | | |
| 17.84% of Net Assets | | | | | | | | | | | | | | | | | | |
Bedford County TN | | | 4.000 | | | | 04/01/2027 | | | AA* | | | 250,000 | | | | 289,005 | |
Milan TN Special School District | | | 5.000 | | | | 03/01/2028 | | | AA* | | | 170,000 | | | | 215,395 | |
Rhea County TN | | | 4.000 | | | | 04/01/2025 | | | A1 | | | 250,000 | | | | 257,085 | |
White County TN | | | 4.000 | | | | 06/01/2027 | | | AA-* | | | 260,000 | | | | 294,949 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,056,434 | |
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS | | | | | | | | | | | |
| 8.59% of Net Assets | | | | | | | | | | | | | | | | | | |
Franklin County TN Health & Educational Facilities Board | | | 4.000 | | | | 09/01/2024 | | | A+* | | | 135,000 | | | | 140,810 | |
Shelby County TN Health Educational & Housing Facilities Rhodes College | | | 4.000 | | | | 08/01/2025 | | | A2 | | | 100,000 | | | | 113,790 | |
Shelby County TN Health Educational & Housing Facilities Rhodes College | | | 4.000 | | | | 08/01/2027 | | | A2 | | | 225,000 | | | | 254,178 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 508,778 | |
| PREREFUNDED BONDS | | | | | | | | | | | |
| 2.07% of Net Assets | | | | | | | | | | | | | | | | | | |
Memphis TN Center City Revenue Finance Corporation | | | 5.250 | | | | 11/01/2025 | | | Aa3 | | | 100,000 | | | | 101,703 | |
Metropolitan Government Nashville & Davidson County TN | | | 4.000 | | | | 07/01/2024 | | | Aaa | | | 20,000 | | | | 20,761 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 122,464 | |
| AIRPORT REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 1.82% of Net Assets | | | | | | | | | | | | | | | | | | |
Metropolitan Nashville Airport Authority | | | 4.000 | | | | 07/01/2023 | | | A1 | | | 100,000 | | | | 107,508 | |
| | | | | | | | | | | | | | | | | | |
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS | | | | | | | | | | | |
| .67% of Net Assets | | | | | | | | | | | | | | | | | | |
Selmer TN | | | 4.000 | | | | 06/01/2025 | | | AA* | | | 35,000 | | | | 39,719 | |
| | | | | | | | | | | | | | | | | | |
Total Investments (cost $5,488,589) (See (a) below for further explanation) 97.67% of Net Assets | | | | | | | | | $ | 5,784,376 | |
| | | | | | | | | | | | | | | | | | |
Other assets in excess of liabilities 2.33% | | | | | | | | | | | | | | | | | 137,727 | |
| | | | | | | | | | | | | | | | | | |
Net Assets 100% | | | | | | | | | | | | | | | | $ | 5,922,103 | |
| | | | | | | | | | | | | | | | | | |
The accompanying footnotes are an integral part of the financial statements.
39
DUPREE MUTUAL FUNDS — TENNESSEE TAX-FREE SHORT-TO-MEDIUM SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Tennessee Municipal Bonds
June 30, 2021
| | # | | Ratings by Moody’s Investors Service unless noted otherwise. |
| | | | Bond ratings are unaudited and not covered by Report of Independent Registered Public Accounting Firm. |
| | | | 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 |
| | ** | | Security is segregated — see footnote 7 |
| (a) | | Cost for federal income tax purposes is $5,488,589 and net unrealized appreciation of investments is as follows: |
| | | | | | |
| | Unrealized appreciation | | $ | 297,972 | |
| | Unrealized depreciation | | | (2,185 | ) |
| | | | | | |
| | Net unrealized appreciation | | $ | 295,787 | |
| | | | | | |
Other Information
The following is a summary of the inputs used, as of June 30, 2021, 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 | | | 5,784,376 | |
Level 3 | | Significant Unobservable Inputs | | | — | |
| | | | | | |
| | | | $ | 5,784,376 | |
| | | | | | |
The accompanying footnotes are an integral part of the financial statements.
40
TENNESSEE TAX-FREE SHORT-TO-MEDIUM SERIES
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2021
| | | | | | | | |
ASSETS: | | | | | | | | |
Investments in securities, at fair value (Cost: $5,488,589) | | | | | | $ | 5,784,376 | |
Cash | | | | | | | 94,781 | |
Interest receivable | | | | | | | 60,168 | |
| | | | | | | | |
Total assets | | | | | | | 5,939,325 | |
LIABILITIES: | | | | | | | | |
Payable for: | | | | | | | | |
Distributions to shareholders | | | 1,839 | | | | | |
Fund shares redeemed | | | 890 | | | | | |
Investment advisory fee | | | 988 | | | | | |
Transfer agent fee | | | 871 | | | | | |
Professional fees | | | 2,374 | | | | | |
Pricing fees | | | 2,105 | | | | | |
Postage expense | | | 2,018 | | | | | |
Audit fees | | | 1,720 | | | | | |
Custodian expense | | | 1,425 | | | | | |
Trustees fees | | | 757 | | | | | |
Accrued expenses | | | 2,235 | | | | | |
| | | | | | | | |
Total liabilities | | | | | | | 17,222 | |
| | | | | | | | |
NET ASSETS: | | | | | | | | |
Capital | | | | | | | 5,877,375 | |
Total distributable gain | | | | | | | 44,728 | |
| | | | | | | | |
Net assets at value | | | | | | $ | 5,922,103 | |
| | | | | | | | |
NET ASSET VALUE, offering price and redemption price per share
(541,383 shares outstanding; unlimited number of shares authorized; no par value) | | | | | | $ | 10.94 | |
| | | | | | | | |
STATEMENT OF OPERATIONS
For the year ended June 30, 2021
| | | | |
Net investment income: | | | | |
Interest income | | $ | 141,230 | |
| | | | |
Expenses: | | | | |
Investment advisory fee | | | 31,558 | |
Transfer agent fee | | | 9,468 | |
Registration expense | | | 8,449 | |
Custodian expense | | | 6,100 | |
Compliance fees | | | 6,722 | |
Pricing expense | | | 4,015 | |
Professional fees | | | 1,452 | |
Trustees fees | | | 669 | |
Other expenses | | | 2,523 | |
| | | | |
Total expenses | | | 70,956 | |
Fees waived by Adviser (Note 2) | | | (26,732 | ) |
Custodian expense reduction (Note 7) | | | (25 | ) |
| | | | |
Net expenses | | | 44,199 | |
| | | | |
Net investment income | | | 97,031 | |
| | | | |
Realized and unrealized gain/(loss) on investments: | | | | |
Net realized gain | | | 18,522 | |
Net change in unrealized appreciation/depreciation | | | (62,358 | ) |
| | | | |
Net realized and unrealized loss on investments | | | (43,836 | ) |
| | | | |
Net increase in net assets resulting from operations | | $ | 53,195 | |
| | | | |
The accompanying footnotes are an integral part of the financial statements.
41
TENNESSEE TAX-FREE SHORT-TO-MEDIUM SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended June 30, 2021 and 2020
| | | | | | | | |
| | | 2021 | | | 2020 | |
Operations: | | | | | | | | |
Net investment income | | $ | 97,031 | | | $ | 111,556 | |
Net realized gain on investments | | | 18,522 | | | | 1,796 | |
Net change in unrealized appreciation/depreciation | | | (62,358 | ) | | | 122,943 | |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 53,195 | | | | 236,295 | |
Total distributions (Note 6) | | | (97,031 | ) | | | (111,556 | ) |
Net Fund share transactions (Note 4) | | | (634,312 | ) | | | (763,504 | ) |
| | | | | | | | |
Total decrease | | | (678,148 | ) | | | (638,765 | ) |
Net assets: | | | | | | | | |
Beginning of year | | | 6,600,251 | | | | 7,239,016 | |
| | | | | | | | |
End of year | | $ | 5,922,103 | | | $ | 6,600,251 | |
| | | | | | | | |
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Selected data for a share outstanding: | | For the years ended June 30, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
Net asset value, beginning of year | | $ | 11.02 | | | $ | 10.82 | | | $ | 10.52 | | | $ | 10.70 | | | $ | 10.93 | |
| | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.17 | | | | 0.17 | | | | 0.17 | | | | 0.16 | | | | 0.17 | |
Net gains/(losses) on investments both realized and unrealized | | | (0.08 | ) | | | 0.20 | | | | 0.30 | | | | (0.18 | ) | | | (0.23 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.09 | | | | 0.37 | | | | 0.47 | | | | (0.02 | ) | | | (0.06 | ) |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income | | | (0.17 | ) | | | (0.17 | ) | | | (0.17 | ) | | | (0.16 | ) | | | (0.17 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, end of year | | $ | 10.94 | | | $ | 11.02 | | | $ | 10.82 | | | $ | 10.52 | | | $ | 10.70 | |
| | | | | | | | | | | | | | | | | | | | |
Total return | | | 0.81% | | | | 3.49% | | | | 4.48% | | | | (0.17)% | | | | (0.54)% | |
Net assets, end of year (in thousands) | | $ | 5,922 | | | $ | 6,600 | | | $ | 7,239 | | | $ | 10,003 | | | $ | 10,499 | |
Ratio of net expenses to average net assets (a) | | | 0.70% | | | | 0.70% | | | | 0.71% | | | | 0.70% | | | | 0.75% | |
Ratio of gross expenses to average net assets | | | 1.12% | | | | 1.14% | | | | 1.08% | | | | 0.98% | | | | 0.88% | |
Ratio of net investment income to average net assets | | | 1.54% | | | | 1.60% | | | | 1.57% | | | | 1.53% | | | | 1.59% | |
Portfolio turnover | | | 5.75% | | | | 4.55% | | | | 10.64% | | | | 22.75% | | | | 10.95% | |
| (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. |
The accompanying footnotes are an integral part of the financial statements.
42
DUPREE MUTUAL FUNDS — INTERMEDIATE GOVERNMENT BOND SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
U.S. Government Securities and Agencies
June 30, 2021
| | | | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | | Par Value | | | Fair Value | |
| FEDERAL FARM CREDIT | | | | | | | | | | | | | |
| 60.30% of Net Assets | | | | | | | | | | | | | | | | | | | | |
Federal Farm Credit Bank ** | | | 5.840 | % | | | 07/20/2022 | | | | Aaa | | | $ | 2,650,000 | | | $ | 2,809,678 | |
Federal Farm Credit Bank ** | | | 5.250 | | | | 10/25/2022 | | | | Aaa | | | | 1,150,000 | | | | 1,227,331 | |
Federal Farm Credit Bank | | | 5.125 | | | | 11/28/2022 | | | | Aaa | | | | 2,000,000 | | | | 2,140,050 | |
Federal Farm Credit Bank | | | 2.375 | | | | 08/01/2029 | | | | Aaa | | | | 1,000,000 | | | | 1,085,520 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | 7,262,579 | |
| FEDERAL HOME LOAN BANK | | | | | | | | | | | | | | | | | | | | |
| 34.26% of Net Assets | | | | | | | | | | | | | | | | | | | | |
Federal Home Loan Bank | | | 5.750 | | | | 06/10/2022 | | | | Aaa | | | | 2,000,000 | | | | 2,105,658 | |
Federal Home Loan Bank | | | 5.365 | | | | 09/09/2024 | | | | Aaa | | | | 1,750,000 | | | | 2,020,393 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | 4,126,051 | |
| FEDERAL HOME LOAN MORTAGE CORPORATION | | | | | | | | | | | | | | | | | | | | |
| 3.97% of Net Assets | | | | | | | | | | | | | | | | | | | | |
Federal Home Loan Mortage Corporation | | | 1.400 | | | | 07/28/2032 | | | | Aaa | | | | 500,000 | | | | 478,119 | |
| | | | | | | | | | | | | | | | | | | | |
Total Investments (cost $11,376,830) (See (a) below for further explanation) 98.53% of Net Assets | | | | | | | | | | | $ | 11,866,749 | |
| | | | | | | | | | | | | | | | | | | | |
Other assets in excess of liabilities 1.47% | | | | | | | | | | | | | | | | | | | 177,283 | |
| | | | | | | | | | | | | | | | | | | | |
Net Assets 100% | | | | | | | | | | | | | | | | | | $ | 12,044,032 | |
| | | | | | | | | | | | | | | | | | | | |
| | # | | Ratings by Moody’s Investors Service unless noted otherwise. |
| | | | Bond ratings are unaudited and not covered by Report of Independent Registered Public Accounting Firm. |
| | | | 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 |
| | ** | | Security is segregated — see footnote 7 |
| (a) | | Cost for federal income tax purposes is $11,376,830 and net unrealized appreciation of investments is as follows: |
| | | | | | |
| | Unrealized appreciation | | $ | 511,300 | |
| | Unrealized depreciation | | | (21,381 | ) |
| | | | | | |
| | Net unrealized appreciation | | $ | 489,919 | |
| | | | | | |
Other Information
The following is a summary of the inputs used, as of June 30, 2021, 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 | | $ | 11,866,749 | |
Level 3 | | Significant Unobservable Inputs | | | — | |
| | | | | | |
| | | | $ | 11,866,749 | |
| | | | | | |
The accompanying footnotes are an integral part of the financial statements.
43
INTERMEDIATE GOVERNMENT BOND SERIES
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2021
| | | | | | | | |
ASSETS: | | | | | | | | |
Investments in securities, at fair value (Cost: $11,376,830) | | | | | | $ | 11,866,749 | |
Cash | | | | | | | 60,099 | |
Interest receivable | | | | | | | 138,282 | |
| | | | | | | | |
Total assets | | | | | | | 12,065,130 | |
LIABILITIES: | | | | | | | | |
Payable for: | | | | | | | | |
Distributions to shareholders | | | 3,856 | | | | | |
Fund shares redeemed | | | 275 | | | | | |
Investment advisory fee | | | 2,140 | | | | | |
Transfer agent fee | | | 1,606 | | | | | |
Professional fees | | | 2,630 | | | | | |
Registration expense | | | 2,228 | | | | | |
Compliance fees | | | 2,008 | | | | | |
Custodian expense | | | 274 | | | | | |
Trustee fees | | | 682 | | | | | |
Accrued expenses | | | 5,399 | | | | | |
| | | | | | | | |
Total liabilities | | | | | | | 21,098 | |
| | | | | | | | |
NET ASSETS: | | | | | | | | |
Capital | | | | | | | 11,606,052 | |
Total distributable earnings | | | | | | | 437,980 | |
| | | | | | | | |
Net assets at value | | | | | | $ | 12,044,032 | |
| | | | | | | | |
(1,193,287 shares outstanding; unlimited number of shares authorized; no par value) | | | | | | $ | 10.09 | |
| | | | | | | | |
STATEMENT OF OPERATIONS
For the year ended June 30, 2021
| | | | |
Net investment income: | | | | |
Interest income | | $ | 447,176 | |
| | | | |
Expenses: | | | | |
Investment advisory fee | | | 30,734 | |
Transfer agent fee | | | 23,051 | |
Custodian expense | | | 7,654 | |
Printing expense | | | 5,475 | |
Registration expense | | | 11,202 | |
Compliance fees | | | 7,300 | |
Pricing fees | | | 6,935 | |
Professional fees | | | 3,569 | |
Trustee fees | | | 1,637 | |
Other expenses | | | 4,590 | |
| | | | |
Total expenses | | | 102,147 | |
Fees waived by Adviser (Note 2) | | | (92 | ) |
Custodian expense reduction (Note 7) | | | (32 | ) |
| | | | |
Net expenses | | | 102,023 | |
| | | | |
Net investment income | | | 345,153 | |
| | | | |
Realized and unrealized gain/(loss) on investments: | | | | |
Net realized gain | | | 89,183 | |
Net change in unrealized appreciation/depreciation | | | (504,094 | ) |
| | | | |
Net realized and unrealized loss on investments | | | (414,911 | ) |
| | | | |
Net decrease in net assets resulting from operations | | $ | (69,758 | ) |
| | | | |
The accompanying footnotes are an integral part of the financial statements.
44
INTERMEDIATE GOVERNMENT BOND SERIES
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended June 30, 2021 and 2020
| | | | | | | | |
| | | 2021 | | | 2020 | |
Operations: | | | | | | | | |
Net investment income | | $ | 345,153 | | | $ | 360,002 | |
Net realized gain on investments | | | 89,183 | | | | 11,595 | |
Net change in unrealized appreciation/depreciation | | | (504,094 | ) | | | 365,868 | |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (69,758 | ) | | | 737,465 | |
Total distributions (Note 6) | | | (345,153 | ) | | | (360,002 | ) |
Net Fund share transactions (Note 4) | | | (3,218,481 | ) | | | 172,086 | |
| | | | | | | | |
Total increase/(decrease) | | | (3,633,392 | ) | | | 549,549 | |
Net assets: | | | | | | | | |
Beginning of year | | | 15,677,424 | | | | 15,127,875 | |
| | | | | | | | |
End of year | | $ | 12,044,032 | | | $ | 15,677,424 | |
| | | | | | | | |
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Selected data for a share outstanding: | | For the years ended June 30, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
Net asset value, beginning of year | | $ | 10.37 | | | $ | 10.12 | | | $ | 9.87 | | | $ | 10.23 | | | $ | 10.70 | |
| | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.23 | | | | 0.24 | | | | 0.25 | | | | 0.25 | | | | 0.26 | |
Net gains/(losses) on investments | | | (0.28 | ) | | | 0.25 | | | | 0.25 | | | | (0.36 | ) | | | (0.47 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.05 | ) | | | 0.49 | | | | 0.50 | | | | (0.11 | ) | | | (0.21 | ) |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income | | | (0.23 | ) | | | (0.24 | ) | | | (0.25 | ) | | | (0.25 | ) | | | (0.26 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, end of year | | $ | 10.09 | | | $ | 10.37 | | | $ | 10.12 | | | $ | 9.87 | | | $ | 10.23 | |
| | | | | | | | | | | | | | | | | | | | |
Total return | | | (0.49)% | | | | 4.88% | | | | 5.12% | | | | (1.05)% | | | | (1.99)% | |
Net assets, end of year (in thousands) | | $ | 12,044 | | | $ | 15,677 | | | $ | 15,128 | | | $ | 15,033 | | | $ | 15,606 | |
Ratio of net expenses to average net assets (a) | | | 0.66% | | | | 0.68% | | | | 0.69% | | | | 0.61% | | | | 0.58% | |
Ratio of gross expenses to average net assets | | | 0.67% | | | | 0.68% | | | | 0.69% | | | | 0.61% | | | | 0.58% | |
Ratio of net investment income to average net assets | | | 2.25% | | | | 2.33% | | | | 2.50% | | | | 2.53% | | | | 2.49% | |
Portfolio turnover | | | 3.35% | | | | 5.07% | | | | 0.00% | | | | 1.99% | | | | 0.00% | |
| (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. |
The accompanying footnotes are an integral part of the financial statements.
45
DUPREE MUTUAL FUNDS — TAXABLE MUNICIPAL BOND SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Taxable Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
| MUNICIPAL UTILITY REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 33.11% of Net Assets | | | | | | | | | | | | | | | | | | |
Alexandria LA Utilities | | | 3.087 | % | | | 05/01/2043 | | | AA* | | $ | 300,000 | | | $ | 315,497 | |
Barnesville GA Water & Sewer | | | 3.175 | | | | 09/01/2046 | | | AA* | | | 250,000 | | | | 248,918 | |
Benton WA Public Water Authority | | | 3.200 | | | | 10/01/2044 | | | AA* | | | 200,000 | | | | 207,498 | |
Cleveland OH Water | | | 3.205 | | | | 01/01/2042 | | | Aa2 | | | 250,000 | | | | 264,605 | |
Eagle River CO Water & Sanitation District | | | 3.010 | | | | 12/01/2042 | | | AA* | | | 325,000 | | | | 334,516 | |
Franklin County WA Pulbic Utility District | | | 2.974 | | | | 09/01/2041 | | | A1/A+* | | | 150,000 | | | | 150,764 | |
Grant County WA Public Utility District | | | 3.336 | | | | 01/01/2041 | | | Aa3 | | | 125,000 | | | | 131,393 | |
Lansing MI Board of Water & Light Utilities | | | 3.525 | | | | 07/01/2041 | | | Aa3 | | | 300,000 | | | | 322,179 | |
Louisville & Jefferson County KY Metropolitan Sewer District | | | 2.650 | | | | 05/15/2044 | | | Aa3 | | | 400,000 | | | | 394,575 | |
Metropolitan Government Nashville & Davidson County TN Recovery Zone | | | 6.693 | | | | 07/01/2041 | | | Aa2 | | | 200,000 | | | | 314,524 | |
New Orleans LA Sewage | | | 2.939 | | | | 06/01/2045 | | | AA* | | | 250,000 | | | | 249,100 | |
OK State Municipal Power Authority | | | 6.310 | | | | 01/01/2040 | | | A2 | | | 95,000 | | | | 137,864 | |
OK State Water Resources Board State Loan Program | | | 2.910 | | | | 10/01/2045 | | | AAA* | | | 200,000 | | | | 207,740 | |
Pasco WA Water & Sewer Revenue | | | 3.272 | | | | 12/01/2040 | | | AA-* | | | 245,000 | | | | 255,199 | |
Pigeon Forge TN Build America Recovery Zone | | | 7.125 | | | | 06/01/2040 | | | AA* | | | 300,000 | | | | 367,206 | |
Russellville AR Water & Sewer | | | 2.816 | | | | 07/01/2040 | | | AA* | | | 245,000 | | | | 250,116 | |
South Central CT Regional Water Authority | | | 3.262 | | | | 08/01/2044 | | | Aa3 | | | 250,000 | | | | 260,635 | |
West Knox Utilities District Knox County TN Water and Sewer ** | | | 6.900 | | | | 06/01/2040 | | | AA+* | | | 400,000 | | | | 420,932 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 4,833,261 | |
| PUBLIC FACILITIES REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 13.95% of Net Assets | | | | | | | | | | | | | | | | | | |
Evanston IL Taxable Corporate Purpose Bonds | | | 4.250 | | | | 12/01/2038 | | | Aa2 | | | 275,000 | | | | 302,464 | |
Franklin County OH Convention Facilities Build America | | | 6.540 | | | | 12/01/2036 | | | Aa2 | | | 155,000 | | | | 222,574 | |
Metropolitan Government Nashville & Davidson County TN | | | 7.431 | | | | 07/01/2043 | | | A1 | | | 190,000 | | | | 285,158 | |
Montgomery AL Community Cooperative District | | | 2.815 | | | | 11/01/2049 | | | Aa1 | | | 200,000 | | | | 201,635 | |
Oklahoma State Capitol Improvement Authority | | | 3.078 | | | | 07/01/2040 | | | AA-* | | | 250,000 | | | | 256,098 | |
Pompano Beach FL Certificate of Participation | | | 5.579 | | | | 01/01/2040 | | | A1 | | | 225,000 | | | | 249,932 | |
Rhode Island Convention Center | | | 6.060 | | | | 05/15/2035 | | | Aa3 | | | 70,000 | | | | 91,458 | |
Tuscon AZ Certificate of Participation | | | 4.831 | | | | 07/01/2034 | | | A1 | | | 130,000 | | | | 165,454 | |
Wilmington NC Limited Obligation | | | 3.090 | | | | 06/01/2040 | | | Aa1 | | | 250,000 | | | | 261,725 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 2,036,498 | |
| SCHOOL IMPROVEMENT BONDS | | | | | | | | | | | | | | | | | | |
| 8.85% of Net Assets | | | | | | | | | | | | | | | | | | |
Jefferson County TN Build America Bonds | | | 6.625 | | | | 06/01/2040 | | | Aa3 | | | 250,000 | | | | 276,462 | |
Scotts Bluff County NE School District | | | 2.519 | | | | 12/01/2039 | | | AA-* | | | 250,000 | | | | 248,500 | |
Sedgwick County KS Unified School District | | | 3.002 | | | | 10/01/2043 | | | Aa3 | | | 250,000 | | | | 254,290 | |
Westminster CO Public Schools Certificates of Participation | | | 3.100 | | | | 12/01/2040 | | | A1 | | | 250,000 | | | | 257,425 | |
White Settlement TX Independent School District | | | 2.843 | | | | 08/15/2045 | | | AAA* | | | 250,000 | | | | 255,310 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,291,987 | |
| UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS | | | | | | | | | | | |
| 8.58% of Net Assets | | | | | | | | | | | | | | | | | | |
Mesa CO State College Auxiliary | | | 5.800 | | | | 05/15/2040 | | | Aa2 | | | 170,000 | | | | 233,430 | |
Mesa State College CO Auxiliary Facilities Build America | | | 6.746 | | | | 05/15/2042 | | | Aa2 | | | 100,000 | | | | 152,684 | |
Michigan State University Revenues | | | 4.496 | | | | 08/15/2048 | | | Aa2 | | | 375,000 | | | | 422,955 | |
OK Development Finance Authority | | | 2.930 | | | | 06/01/2041 | | | AA-* | | | 135,000 | | | | 136,694 | |
TN State School Bond Authority | | | 2.661 | | | | 11/01/2045 | | | Aa1 | | | 300,000 | | | | 307,680 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,253,443 | |
| REFUNDING BONDS | | | | | | | | | | | | | | | | | | |
| 8.28% of Net Assets | | | | | | | | | | | | | | | | | | |
Bangor ME | | | 2.546 | | | | 07/15/2042 | | | Aa2 | | | 250,000 | | | | 251,923 | |
Homewood AL Warrants | | | 2.753 | | | | 09/01/2046 | | | Aa2 | | | 250,000 | | | | 250,258 | |
Leeds AL | | | 3.097 | | | | 05/01/2048 | | | AA* | | | 300,000 | | | | 304,952 | |
Oxford AL | | | 2.684 | | | | 01/01/2045 | | | Aa2 | | | 400,000 | | | | 401,940 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,209,073 | |
| STATE AND LOCAL MORTGAGE/HOUSING REVENUE BONDS | | | | | | | | | | | |
| 7.79% of Net Assets | | | | | | | | | | | | | | | | | | |
TN Housing Development Agency | | | 3.104 | | | | 07/01/2040 | | | Aa1 | | | 250,000 | | | | 258,685 | |
TN Housing Development Agency | | | 3.254 | | | | 01/01/2045 | | | Aa1 | | | 150,000 | | | | 155,397 | |
Uptown Development Authority Texas | | | 3.464 | | | | 09/01/2040 | | | A2 | | | 200,000 | | | | 208,076 | |
The accompanying footnotes are an integral part of the financial statements.
46
DUPREE MUTUAL FUNDS — TAXABLE MUNICIPAL BOND SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
Taxable Municipal Bonds
June 30, 2021
| | | | | | | | | | | | | | | | | | |
| Bond Description | | Coupon | | | Maturity
Date | | | Rating# | | Par Value | | | Fair Value | |
VA State Housing Development | | | 3.130 | % | | | 11/01/2045 | | | Aa1 | | $ | 250,000 | | | $ | 256,653 | |
VA State Housing Development | | | 3.230 | | | | 11/01/2050 | | | Aa1 | | | 250,000 | | | | 257,750 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,136,561 | |
| MARINA/PORT AUTHORITY REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 5.50% of Net Assets | | | | | | | | | | | | | | | | | | |
Massachusetts State Port Authority | | | 2.719 | | | | 07/01/2042 | | | Aa2 | | | 500,000 | | | | 493,600 | |
Miami Dade County FL Special Obligation | | | 7.500 | | | | 04/01/2040 | | | Aa3 | | | 200,000 | | | | 308,580 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 802,180 | |
| MISCELLANEOUS PUBLIC IMPROVEMENT BONDS | | | | | | | | | | | | | | | | | | |
| 3.05% of Net Assets | | | | | | | | | | | | | | | | | | |
KY State Property & Buildings Build America ** | | | 5.921 | | | | 11/01/2030 | | | A1 | | | 250,000 | | | | 310,910 | |
Leeds AL Taxable Warrants | | | 4.125 | | | | 05/01/2039 | | | AA* | | | 125,000 | | | | 133,676 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 444,586 | |
| TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 2.96% of Net Assets | | | | | | | | | | | | | | | | | | |
Washoe County NV Highway Revenue | | | 7.969 | | | | 02/01/2040 | | | Aa3 | | | 280,000 | | | | 431,592 | |
| | | | | | | | | | | | | | | | | | |
| AD VALOREM PROPERTY BONDS | | | | | | | | | | | | | | | | | | |
| 1.80% of Net Assets | | | | | | | | | | | | | | | | | | |
Parker CO Water & Sanitation District | | | 3.062 | | | | 08/01/2040 | | | AA+* | | | 250,000 | | | | 262,185 | |
| | | | | | | | | | | | | | | | | | |
| MASS TRANSIT BONDS | | | | | | | | | | | | | | | | | | |
| 1.78% of Net Assets | | | | | | | | | | | | | | | | | | |
Dallas Area Rapid Transit | | | 3.039 | | | | 12/01/2043 | | | Aa2 | | | 250,000 | | | | 259,963 | |
| | | | | | | | | | | | | | | | | | |
| HOSPITAL AND HEALTHCARE REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| 1.77% of Net Assets | | | | | | | | | | | | | | | | | | |
Midland County TX Hospital District | | | 6.440 | | | | 05/15/2039 | | | Aa3 | | | 185,000 | | | | 258,943 | |
| | | | | | | | | | | | | | | | | | |
| AIRPORT REVENUE BONDS | | | | | | | | | | | | | | | | | | |
| .89% of Net Assets | | | | | | | | | | | | | | | | | | |
Tri-Cities TN Airport Authority Revenue | | | 3.625 | | | | 05/01/2038 | | | Aa2 | | | 125,000 | | | | 129,344 | |
| | | | | | | | | | | | | | | | | | |
Total Investments (cost $13,440,474) (See (a) below for further explanation) 98.31% of Net Assets | | | $ | 14,349,616 | |
| | | | | | | | | | | | | | | | | | |
Other assets in excess of liabilities 1.69% | | | | | | | | | | | | | | | | | 246,608 | |
| | | | | | | | | | | | | | | | | | |
Net Assets 100% | | | | | | | | | | | | | | | | $ | 14,596,224 | |
| | | | | | | | | | | | | | | | | | |
| | # | | Ratings by Moody’s Investors Service unless noted otherwise. |
| | | | Bond ratings are unaudited and not covered by Report of Independent Registered Public Accounting Firm. |
| | | | 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 |
| | ** | | Security is segregated — see footnote 7 |
| (a) | | Cost for federal income tax purposes is $13,457,789 and net unrealized appreciation of investments is as follows: |
| | | | | | |
| | Unrealized appreciation | | $ | 909,524 | |
| | Unrealized depreciation | | | (17,697 | ) |
| | | | | | |
| | Net unrealized appreciation | | $ | 891,827 | |
| | | | | | |
Other Information
The following is a summary of the inputs used, as of June 30, 2021, 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 | | | 14,349,616 | |
Level 3 | | Significant Unobservable Inputs | | | — | |
| | | | | | |
| | | | $ | 14,349,616 | |
| | | | | | |
The accompanying footnotes are an integral part of the financial statements.
47
TAXABLE MUNICIPAL BOND SERIES
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2021
| | | | | | | | |
ASSETS: | | | | | | | | |
Investments in securities, at fair value (Cost: $13,440,474) | | | | | | $ | 14,349,616 | |
Cash | | | | | | | 146,053 | |
Interest receivable | | | | | | | 139,339 | |
| | | | | | | | |
Total assets | | | | | | | 14,635,008 | |
LIABILITIES: | | | | | | | | |
Payable for: | | | | | | | | |
Distributions to shareholders | | | 9,958 | | | | | |
Fund shares redeemed | | | 169 | | | | | |
Investment advisory fee | | | 3,372 | | | | | |
Transfer agent fee | | | 1,734 | | | | | |
Trustees fees | | | 9,995 | | | | | |
Professional fees | | | 4,581 | | | | | |
Registration expense | | | 4,395 | | | | | |
Custodian expense | | | 3,389 | | | | | |
Accrued expenses | | | 1,191 | | | | | |
| | | | | | | | |
Total liabilities | | | | | | | 38,784 | |
| | | | | | | | |
NET ASSETS: | | | | | | | | |
Capital | | | | | | | 13,721,904 | |
Total distributable earnings | | | | | | | 874,320 | |
| | | | | | | | |
Net assets at value | | | | | | $ | 14,596,224 | |
| | | | | | | | |
NET ASSET VALUE, offering price and redemption price per share
(1,419,300 shares outstanding; unlimited number of shares authorized; no par value) | | | | | | $ | 10.28 | |
| | | | | | | | |
STATEMENT OF OPERATIONS
For the year ended June 30, 2021
| | | | |
Net investment income: | | | | |
Interest income | | $ | 570,613 | |
| | | | |
Expenses: | | | | |
Investment advisory fee | | | 72,201 | |
Transfer agent fee | | | 21,660 | |
Registration expense | | | 17,698 | |
Custodian expense | | | 7,799 | |
Compliance fees | | | 7,201 | |
Pricing fees | | | 4,621 | |
Professional fees | | | 3,227 | |
Trustees fees | | | 1,495 | |
Other expenses | | | 3,374 | |
| | | | |
Total expenses | | | 139,276 | |
Fees waived by Adviser (Note 2) | | | (38,181 | ) |
Custodian expense reduction (Note 7) | | | (32 | ) |
| | | | |
Net expenses | | | 101,063 | |
| | | | |
Net investment income | | | 469,550 | |
| | | | |
Realized and unrealized gain/loss on investments: | | | | |
Net realized gain | | | 13,018 | |
Net change in unrealized appreciation/depreciation | | | (93,169 | ) |
| | | | |
Net realized and unrealized gain/(loss) on investments | | | (80,151 | ) |
| | | | |
Net increase in net assets resulting from operations | | $ | 389,399 | |
| | | | |
The accompanying footnotes are an integral part of the financial statements.
48
TAXABLE MUNICIPAL BOND SERIES
STATEMENT OF CHANGES IN NET ASSETS
For the years ended June 30, 2021 and 2020
| | | | | | | | |
| | | 2021 | | | 2020 | |
Operations: | | | | | | | | |
Net investment income | | $ | 469,550 | | | $ | 584,117 | |
Net realized gain on investments | | | 13,018 | | | | 123,316 | |
Net change in unrealized appreciation/depreciation | | | (93,169 | ) | | | (65,148 | ) |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 389,399 | | | | 642,285 | |
Total distributions (Note 6) | | | (558,521 | ) | | | (629,639 | ) |
Net Fund share transactions (Note 4) | | | 1,042,989 | | | | 1,470,928 | |
| | | | | | | | |
Total increase | | | 873,867 | | | | 1,483,574 | |
Net assets: | | | | | | | | |
Beginning of year | | | 13,722,357 | | | | 12,238,783 | |
| | | | | | | | |
End of year | | $ | 14,596,224 | | | $ | 13,722,357 | |
| | | | | | | | |
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Selected data for a share outstanding: | | For the years ended June 30, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
Net asset value, beginning of year | | | $10.40 | | | | $10.39 | | | | $10.24 | | | | $10.48 | | | | $10.98 | |
| | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.34 | | | | 0.52 | | | | 0.51 | | | | 0.51 | | | | 0.47 | |
Net gains/(losses) on investments | | | (0.06 | ) | | | 0.01 | | | | 0.15 | | | | (0.24 | ) | | | (0.43 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.28 | | | | 0.53 | | | | 0.66 | | | | 0.27 | | | | 0.04 | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income | | | (0.34 | ) | | | (0.52 | ) | | | (0.51 | ) | | | (0.51 | ) | | | (0.47 | ) |
Distributions from capital gains | | | (0.06 | ) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | (0.07 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.40 | ) | | | (0.52 | ) | | | (0.51 | ) | | | (0.51 | ) | | | (0.54 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, end of year | | | $10.28 | | | | $10.40 | | | | $10.39 | | | | $10.24 | | | | $10.48 | |
| | | | | | | | | | | | | | | | | | | | |
Total return | | | 2.72% | | | | 5.20% | | | | 6.64% | | | | 2.66% | | | | 0.78% | |
Net assets, end of year (in thousands) | | | $14,596 | | | | $13,722 | | | | $12,239 | | | | $10,957 | | | | $11,037 | |
Ratio of net expenses to average net assets (a) | | | 0.70% | | | | 0.70% | | | | 0.70% | | | | 0.70% | | | | 0.62% | |
Ratio of gross expenses to average net assets | | | 0.96% | | | | 1.02% | | | | 1.00% | | | | 0.92% | | | | 0.74% | |
Ratio of net investment income to average net assets | | | 3.30% | | | | 4.62% | | | | 4.99% | | | | 4.95% | | | | 4.79% | |
Portfolio turnover | | | 33.27% | | | | 16.28% | | | | 3.58% | | | | 4.31% | | | | 11.04% | |
| (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. |
The accompanying footnotes are an integral part of the financial statements.
49
DUPREE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
| 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 Trustees 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, and its weighted average nominal maturity will normally range between 3-10 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.”
The Funds indemnify the Trust’s Officers and Trustees for certain liabilities that might arise from their performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.
In general, securities for which market quotations are readily available are valued at current market value, as provided by independent third-party pricing agents. All other securities are valued at fair value as determined in good faith by the Board of Trustees of the Trust (the “Board”). The Board is responsible for, among other things, determining and monitoring the value of the Funds’ securities. These procedures involve the use of matrix pricing models which take into consideration, among other factors, years to maturity, call date, coupon rate, trading patterns, creditworthiness, supply and demand dynamics, trading characteristics, special circumstances of a security or trading market, and any other factors or market data considered relevant in determining the value for securities. The procedures also include weekly verification of market quotations provided by two independent pricing services. A bond valuation that is not supported by the matrix pricing model requires the Pricing Review Committee to fair value the security in accordance with policies and procedures (the “Valuation Procedures”). Pursuant to the Valuation Procedures, the Pricing Review Committee has the day-to-day responsibility for fair valuing the Trust’s securities or other assets. Securities valued by the Pricing Review Committee are reviewed by the Valuation Committee, which consists of all the Independent
50
DUPREE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
| 1. | | Organization and Significant Accounting Policies, continued |
Trustees. 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 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 June 30, 2021, 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.
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.
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 year ended June 30, 2021. 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 June 30, 2021, 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).
51
DUPREE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
| 1. | | Organization and Significant Accounting Policies, continued |
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.
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 |
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.
Subsequent events occurring after June 30, 2021 have been evaluated by the Funds’ adviser for potential impact to this report through the date the financial statements were issued. The Funds’ 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, Dupree & Company, Inc. (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 0.50 of 1% of the first $100,000,000 average daily net assets of each Fund determined separately; 0.45 of 1% of the average daily net assets between $100,000,001 and $150,000,000 of each Fund determined separately; 0.40 of 1% of the average daily net assets between $150,000,001 and $500,000,000 of each Fund determined separately; 0.35 of 1% of the average daily net assets between $500,000,001 and $750,000,000; and 0.30 of 1% of the average daily net assets between $750,000,001 and $1,000,000,000; and 0.25 of 1% of the average daily net assets in excess of $1,000,000,000. The Intermediate Government Bond Series has agreed to pay to 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 0.20 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.
52
DUPREE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
| 2. | | Investment Advisory Fee and Other Transactions with Affiliates, continued |
For the year ended June 30, 2021, fees voluntarily waived by the Adviser were as follows:
| | | | |
| | | Fees waived by Adviser | |
Alabama Tax-Free Income Series | | $ | 26,544 | |
Kentucky Tax-Free Income Series | | | -0- | |
Kentucky Tax-Free Short-to-Medium Series | | | 37,445 | |
Mississippi Tax-Free Income Series | | | 29,061 | |
North Carolina Tax-Free Income Series | | | 63 | |
North Carolina Tax-Free Short-to-Medium Series | | | 32,485 | |
Tennessee Tax-Free Income Series | | | 9,565 | |
Tennessee Tax-Free Short-to-Medium Series | | | 26,732 | |
Intermediate Government Bond Series | | | 92 | |
Taxable Municipal Bond Series | | | 38,181 | |
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 for each Fund.
For the year ended June 30, 2021, each member of the Board of Trustees received a fee of $28,000 per year plus $2,000 for each Committee meeting attended. In addition, all 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 year ended June 30, 2021, 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 | | $ | 5,021,491 | | | $ | 3,643,924 | |
Kentucky Tax-Free Income Series | | | 109,205,063 | | | | 57,687,271 | |
Kentucky Tax-Free Short-to-Medium Series | | | 4,385,010 | | | | 5,568,095 | |
Mississippi Tax-Free Income Series | | | 1,505,689 | | | | 983,365 | |
North Carolina Tax-Free Income Series | | | 17,017,002 | | | | 12,432,071 | |
North Carolina Tax-Free Short-to-Medium Series | | | 842,310 | | | | 250,194 | |
Tennessee Tax-Free Income Series | | | 2,484,254 | | | | 10,094,009 | |
Tennessee Tax-Free Short-to-Medium Series | | | 349,755 | | | | 771,460 | |
Intermediate Government Bond Series | | | 499,500 | | | | 3,113,050 | |
Taxable Municipal Bond Series | | | 6,403,962 | | | | 4,753,622 | |
As of June 30, 2021 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 | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
Shares sold | | | 293,496 | | | $ | 3,764,316 | | | | 246,080 | | | $ | 3,104,504 | |
Shares reinvested | | | 19,958 | | | | 255,760 | | | | 22,101 | | | | 278,564 | |
Shares redeemed | | | (259,812 | ) | | | (3,338,207 | ) | | | (231,029 | ) | | | (2,881,885 | ) |
Net increase | | | 53,642 | | | $ | 681,869 | | | | 37,152 | | | $ | 501,183 | |
53
DUPREE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
| 4. | | Capital Shares, continued |
| | | | | | | | | | | | | | | | |
| KENTUCKY TAX-FREE INCOME SERIES | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
Shares sold | | | 16,706,588 | | | $ | 133,445,698 | | | | 13,023,200 | | | $ | 102,778,654 | |
Shares reinvested | | | 1,716,683 | | | | 13,703,841 | | | | 1,823,759 | | | | 14,358,125 | |
Shares redeemed | | | (16,656,182 | ) | | | (133,013,154 | ) | | | (14,690,719 | ) | | | (115,272,687 | ) |
Net increase | | | 1,767,089 | | | $ | 14,136,385 | | | | 156,240 | | | $ | 1,864,092 | |
| | | | | | | | | | | | | | | | |
KENTUCKY TAX-FREE
SHORT-TO-MEDIUM SERIES | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
Shares sold | | | 981,085 | | | $ | 5,340,565 | | | | 1,286,611 | | | $ | 6,918,260 | |
Shares reinvested | | | 75,976 | | | | 413,264 | | | | 89,454 | | | | 482,014 | |
Shares redeemed | | | (1,483,345 | ) | | | (8,070,761 | ) | | | (2,964,910 | ) | | | (15,976,039 | ) |
Net decrease | | | (426,284 | ) | | $ | (2,316,932 | ) | | | (1,588,845 | ) | | $ | (8,575,765 | ) |
| | | | | | | | | | | | | | | | |
| MISSISSIPPI TAX-FREE INCOME SERIES | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
Shares sold | | | 139,052 | | | $ | 1,722,024 | | | | 106,403 | | | $ | 1,308,777 | |
Shares reinvested | | | 8,134 | | | | 100,664 | | | | 8,169 | | | | 100,197 | |
Shares redeemed | | | (125,113 | ) | | | (1,551,245 | ) | | | (143,944 | ) | | | (1,741,993 | ) |
Net increase/(decrease) | | | 22,073 | | | $ | 271,443 | | | | (29,372 | ) | | $ | (333,019 | ) |
| | | | | | | | | | | | | | | | |
NORTH CAROLINA TAX-FREE INCOME SERIES | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
Shares sold | | | 2,470,661 | | | $ | 29,730,671 | | | | 2,544,879 | | | $ | 30,018,744 | |
Shares reinvested | | | 174,207 | | | | 2,091,395 | | | | 175,039 | | | | 2,066,064 | |
Shares redeemed | | | (2,644,285 | ) | | | (31,825,992 | ) | | | (1,697,222 | ) | | | (19,982,635 | ) |
Net increase/(decrease) | | | 583 | | | $ | (3,926 | ) | | | 1,022,696 | | | $ | 12,102,173 | |
| | | | | | | | | | | | | | | | |
NORTH CAROLINA TAX-FREE SHORT-TO-MEDIUM SERIES | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
Shares sold | | | 100,230 | | | $ | 1,125,345 | | | | 279,136 | | | $ | 3,113,820 | |
Shares reinvested | | | 13,703 | | | | 153,756 | | | | 18,316 | | | | 203,660 | |
Shares redeemed | | | (87,590 | ) | | | (983,469 | ) | | | (908,354 | ) | | | (10,075,145 | ) |
Net increase/(decrease) | | | 26,343 | | | $ | 295,632 | | | | (610,902 | ) | | $ | (6,757,665 | ) |
| | | | | | | | | | | | | | | | |
| TENNESSEE TAX-FREE INCOME SERIES | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
Shares sold | | | 471,541 | | | $ | 5,524,640 | | | | 481,990 | | | $ | 5,602,354 | |
Shares reinvested | | | 113,232 | | | | 1,324,566 | | | | 130,095 | | | | 1,507,977 | |
Shares redeemed | | | (1,434,600 | ) | | | (16,784,195 | ) | | | (1,455,917 | ) | | | (16,861,850 | ) |
Net decrease | | | (849,827 | ) | | $ | (9,934,989 | ) | | | (843,832 | ) | | $ | (9,751,519 | ) |
54
DUPREE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
| 4. | | Capital Shares, continued |
| | | | | | | | | | | | | | | | |
TENNESSEE TAX-FREE SHORT-TO-MEDIUM SERIES | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
Shares sold | | | 47,536 | | | $ | 523,861 | | | | 28,717 | | | $ | 313,936 | |
Shares reinvested | | | 6,690 | | | | 73,621 | | | | 7,600 | | | | 82,906 | |
Shares redeemed | | | (111,880 | ) | | | (1,231,794 | ) | | | (106,624 | ) | | | (1,160,346 | ) |
Net decrease | | | (57,654 | ) | | $ | (634,312 | ) | | | (70,307 | ) | | $ | (763,504 | ) |
| | | | | | | | | | | | | | | | |
INTERMEDIATE GOVERNMENT BOND
SERIES | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
Shares sold | | | 143,600 | | | $ | 1,473,275 | | | | 106,461 | | | $ | 1,087,209 | |
Shares reinvested | | | 28,503 | | | | 291,636 | | | | 28,982 | | | | 296,444 | |
Shares redeemed | | | (490,423 | ) | | | (4,983,392 | ) | | | (118,712 | ) | | | (1,211,567 | ) |
Net increase/(decrease) | | | (318,320 | ) | | $ | (3,218,481 | ) | | | 16,731 | | | $ | 172,086 | |
| | | | | | | | | | | | | | | | |
| TAXABLE MUNICIPAL BOND SERIES | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | |
| | | SHARES | | | AMOUNT | | | SHARES | | | AMOUNT | |
Shares sold | | | 241,742 | | | $ | 2,502,800 | | | | 149,035 | | | $ | 1,543,704 | |
Shares reinvested | | | 38,485 | | | | 397,308 | | | | 41,121 | | | | 427,824 | |
Shares redeemed | | | (180,823 | ) | | | (1,857,119 | ) | | | (47,990 | ) | | | (500,600 | ) |
Net increase | | | 99,404 | | | $ | 1,042,989 | | | | 142,166 | | | $ | 1,470,928 | |
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.
Municipal Securities Risk
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
55
DUPREE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
| 5. | | Principal Risks, continued |
discontinuance of the supporting taxation or the inability to collect revenues for the specific project or specific assets. Municipal 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 Funds’ 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. As of the date of issuance of these financial statements, COVID-19 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 last for an extended period of time and result in a substantial economic disruption. 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.
56
DUPREE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
At June 30, 2021, the Funds’ capital loss carry-forwards available to offset future capital gains, as follows:
| | | | | | | | | | | | |
| | | Short-term | | | Long-term | | | Total | |
Kentucky Tax-Free Short-to-Medium Series | | $ | 90,941 | | | $ | | | | $ | 90,941 | |
North Carolina Tax-Free Income Series | | | 1,223,284 | | | | 226,158 | | | | 1,449,442 | |
Tennessee Tax-Free Income Series | | | 149,197 | | | | | | | | 149,197 | |
Tennessee Tax-Free Short-to-Medium Series | | | 2,170 | | | | 248,889 | | | | 251,059 | |
Intermediate Government Bond Series | | | 51,938 | | | | | | | | 51,938 | |
Taxable Municipal Bond Series | | | | | | | 17,508 | | | | 17,508 | |
During the year ended June 30, 2021, the following Funds utilized capital loss carry-forwards as follows:
| | | | |
Alabama Tax Free Income Series | | $ | 71,405 | |
Kentucky Tax-Free Short-to-Medium Series | | | 23,245 | |
North Carolina Tax-Free Income Series | | | 132,706 | |
Tennessee Tax-Free Income Series | | | 156,369 | |
Tennessee Tax-Free Short-to-Medium Series | | | 20,692 | |
Intermediate Government Bond Series | | | 89,184 | |
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, 2021, the Funds did not have any reclassification of net assets.
The tax character of distributions paid for the years ended June 30, 2021 and 2020 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2021 | | | 2020 | |
| | | Tax
Exempt
Income | | | Ordinary
Income | | | Long-Term
Capital
Gain | | | Tax
Exempt
Income | | | Ordinary
Income | | | Long-Term
Capital
Gain | |
Alabama Tax-Free Income Series | | $ | 625,892 | | | $ | — | | | $ | — | | | $ | 680,102 | | | $ | — | | | $ | — | |
Kentucky Tax-Free Income Series | | | 24,521,135 | | | | — | | | | 505,459 | | | | 25,818,863 | | | | — | | | | — | |
Kentucky Tax-Free Short-to-Medium Series | | | 781,394 | | | | — | | | | — | | | | 865,554 | | | | — | | | | — | |
Mississippi Tax-Free Income Series | | | 251,706 | | | | — | | | | 21,270 | | | | 275,568 | | | | — | | | | 14,209 | |
North Carolina Tax-Free Income Series | | | 3,362,950 | | | | — | | | | — | | | | 3,527,438 | | | | — | | | | — | |
North Carolina Tax-Free Short-to-Medium Series | | | 206,892 | | | | 1,510 | | | | — | | | | 274,467 | | | | — | | | | — | |
Tennessee Tax-Free Income Series | | | 2,169,427 | | | | — | | | | — | | | | 2,425,813 | | | | — | | | | — | |
Tennessee Tax-Free Short-to-Medium Series | | | 97,031 | | | | — | | | | — | | | | 111,556 | | | | — | | | | — | |
Intermediate Government Bond Series | | | — | | | | 345,153 | | | | — | | | | — | | | | 360,002 | | | | — | |
Taxable Municipal Bond Series | | | — | | | | 476,175 | | | | 82,346 | | | | — | | | | 629,639 | | | | — | |
57
DUPREE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
| 6. | | Federal Income Taxes, continued: |
At June 30, 2021, 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 | | $ | | | | $ | 83,653 | | | $ | 1,658 | | | $ | 1,999,255 | |
Kentucky Tax-Free Income | | | — | | | | 2,733,716 | | | | 37,008 | | | | 69,687,725 | |
Kentucky Tax-Free Short-to-Medium | | | — | | | | 27,073 | | | | — | | | | 1,935,736 | |
Mississippi Tax-Free Income | | | — | | | | 37,856 | | | | 20,016 | | | | 732,449 | |
North Carolina Tax-Free Income | | | — | | | | 271,257 | | | | — | | | | 11,060,135 | |
North Carolina Tax-Free Short-to-Medium | | | — | | | | 4,382 | | | | 48 | | | | 704,010 | |
Tennessee Tax-Free Income | | | — | | | | 190,807 | | | | — | | | | 6,054,619 | |
Tennessee Tax-Free Short-to-Medium | | | — | | | | 1,839 | | | | — | | | | 295,787 | |
Intermediate Government Bond | | | 3,856 | | | | — | | | | — | | | | 489,919 | |
Taxable Municipal Bond Series | | | 9,958 | | | | — | | | | — | | | | 891,827 | |
| | | | | | | | | | | | |
| | | Accumulated
Capital and
Other Losses | | | Other
Temporary
Differences | | | Total
Accumulated Earnings/
(Losses) | |
Alabama Tax-Free Income | | $ | -0- | | | $ | (83,653 | ) | | $ | 2,000,913 | |
Kentucky Tax-Free Income | | | -0- | | | | (2,733,716 | ) | | | 69,724,733 | |
Kentucky Tax-Free Short-to-Medium | | | (90,941 | ) | | | (27,073 | ) | | | 1,844,795 | |
Mississippi Tax-Free Income | | | -0- | | | | (37,856 | ) | | | 752,466 | |
North Carolina Tax-Free Income | | | (1,449,442 | ) | | | (271,257 | ) | | | 9,610,693 | |
North Carolina Tax-Free Short-to-Medium | | | -0- | | | | (4,382 | ) | | | 704,058 | |
Tennessee Tax-Free Income | | | (149,197 | ) | | | (214,004 | ) | | | 5,882,226 | |
Tennessee Tax-Free Short-to-Medium | | | (251,059 | ) | | | (1,839 | ) | | | 44,728 | |
Intermediate Government Bond | | | (51,939 | ) | | | (3,856 | ) | | | 437,980 | |
Taxable Municipal Bond Series | | | (17,507 | ) | | | (9,958 | ) | | | 874,320 | |
| 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. Each Fund is permitted to borrow money as a temporary measure in order to pay redeeming shareholders. The principal amounts borrowed are due on demand. The agreement expires on August 23, 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. Each Fund has segregated securities in order to cover potential loans.
58
DUPREE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
| 7. | | Line of Credit Agreement and Custodian Agreement, continued |
At June 30, 2021, the Funds had an aggregate unused line of credit amount of $25,000,000. During the year ended June 30, 2021, the average interest rate on borrowings was 3.25% and the largest borrowing amount, the date of the largest borrowing and the daily weighted average borrowings for each Fund were as follows:
| | | | | | | | | | | | |
| | | Largest
Borrowing | | | Date of
Largest
Borrowing | | | Weighted
Average
Borrowing | |
Alabama Tax-Free Income Series | | $ | 479,000 | | | | 12/30/2020 | | | $ | 2,715 | |
Kentucky Tax Free Income Series | | | 138,000 | | | | 09/11/2020 | | | | 3,186 | |
Kentucky Tax-Free Short-to-Medium Series | | | 430,000 | | | | 01/25/2021 | | | | 4,521 | |
Mississippi Tax-Free Income Series | | | 526,000 | | | | 12/07/2020 | | | | 1,660 | |
North Carolina Tax-Free Income Series | | | 1,797,000 | | | | 01/20/2021 | | | | 33,477 | |
North Carolina Tax-Free Short-to-Medium Series | | | 4,000 | | | | 03/02/2021 | | | | 11 | |
Tennessee Tax-Free Income Series | | | 3,182,000 | | | | 03/29/2021 | | | | 30,090 | |
Tennessee Short-to-Medium Tax-Free Series | | | 187,000 | | | | 08/28/2021 | | | | 2,074 | |
Intermediate Government Bond Series | | | 270,000 | | | | 03/18/2021 | | | | 4,296 | |
Taxable Municipal Bond Series | | | 119,000 | | | | 02/17/2021 | | | | 1,334 | |
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.”
| 8. | | Shares of Beneficial Ownership |
The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the fund under Section 2(a)(9) of the 1940 Act. At June 30, 2021, the following shareholders held over 25% of a Fund’s shares outstanding:
| | | | | | |
| | | Name of Shareholders | | Percentage of Ownership | |
Mississippi Tax-Free Income Series | | SEI Private Trust Company | | | 32.28 | |
Taxable Municipal Bond Series | | Hardin County Water District No. 2 | | | 28.78 | |
59
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of
Dupree Mutual Funds
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of Dupree Mutual Funds, comprising 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, and Taxable Municipal Bond Series (the “Funds”), as of June 30, 2021, the related statements of operations, the statements of changes in net assets, the related notes, and the financial highlights for the year then ended (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the each of the Funds as of June 30, 2021, and the results of their operations, the changes in net assets, and the financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
The Funds’ financial statements and financial highlights for the years ended June 30, 2020 and prior, were audited by other auditors, whose report dated August 26, 2020, except for the effects of the restatement discussed in Note 9 (not presented herein) to the financial statements appearing under Item 1 of the Fund’s 2020 annual report on Form N-CSR, as to which the date is October 9, 2020, expressed an unqualified opinion on those financial statements and financial highlights and included a paragraph regarding the correction of a misstatement related to a clerical error on the statement of operations and statement of changes in net assets for the North Carolina Tax-Free Income Series.
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021, by correspondence with the custodian. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the Funds’ auditor since 2021.
COHEN & COMPANY, LTD.
Milwaukee, Wisconsin
August 26, 2021
60
DUPREE MUTUAL FUNDS
OTHER UNAUDITED INFORMATION
June 30, 2021
Change of Independent Auditor
On February 25, 2021, the Board appointed, upon recommendation of the Audit Committee, Cohen & Company, Ltd. (“Cohen”) as the independent registered public accounting firm of the Trust for the fiscal year ending June 30, 2021.
Ernst & Young, LLP (“EY”) resigned as the independent registered public accounting firm of the Trust on March 2, 2021 subsequent to notification from the Audit Committee on February 25, 2021. EY’s report on the financial statements of the Trust for the past three fiscal years did not contain an adverse opinion or disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the Trust’s three most recent fiscal years and through March 2, 2021, there were no (1) disagreements with EY on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to EY’s satisfaction, would have caused it to make reference to that matter in connection with its report; or (2) “reportable events,” as that term is defined in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934.
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 | | Other
Directorships
Held by Trustee
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 (2014-2021; online business support services for equestrian events); President, H&S1 KY Lexington, LLC (2017 to 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/ October 2011 | | Vice President for Finance and Business, Transylvania University (2009-June 30, 2021 retired) | | 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 |
| 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 to present); Gess Mattingly & Atchison, P.S.C. (law firm) (2003-2017) | | N/A | | N/A |
61
DUPREE MUTUAL FUNDS
OTHER UNAUDITED INFORMATION
June 30, 2021
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 | | Other
Directorships
Held by Trustee
During
Past Five Years |
Michelle M. Dragoo 125 South Mill Street Lexington, KY 40507 (1961) | | Vice President, Secretary, Treasurer | | Annual Term/ Vice President, October 1999 to present; Secretary and Treasurer, October 1999 to present | | Vice President, Secretary, Treasurer 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 |
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 |
| (1) | | 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 June 30, 2021, 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.
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, 2021, 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, 2021, 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 May 2021 meeting that addressed the operation of the Program and provided an assessment of the adequacy and effectiveness of the Program during the period from April 1, 2020 through March 31, 2021 (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.
62
DUPREE MUTUAL FUNDS
OTHER UNAUDITED INFORMATION
June 30, 2021
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 June 30, 2021” 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
June 30, 2021 | | | Beginning
Account Value
January 1, 2021* | | | Ending
Account Value
June 30, 2021** | | | Expenses Paid During
the Six Months
Ended June 30, 2021 | |
Alabama Tax-Free Income Series | | | | | | | | | | | | | | | | |
| Actual | | | .70 | % | | $ | 1,000.00 | | | $ | 1,020.83 | | | $ | 3.48 | |
| Hypothetical | | | .70 | | | | 1,000.00 | | | | 1,024.79 | | | | 3.49 | |
Kentucky Tax-Free Income Series | | | | | | | | | | | | | | | | |
| Actual | | | .56 | | | | 1,000.00 | | | | 1,022.96 | | | | 2.74 | |
| Hypothetical | | | .56 | | | | 1,000.00 | | | | 1,024.79 | | | | 2.74 | |
Kentucky Tax-Free Short-to-Medium Series | | | | | | | | | | | | | | | | |
| Actual | | | .70 | | | | 1,000.00 | | | | 1,009.22 | | | | 3.46 | |
| Hypothetical | | | .70 | | | | 1,000.00 | | | | 1,024.79 | | | | 3.48 | |
Mississippi Tax-Free Income Series | | | | | | | | | | | | | | | | |
| Actual | | | .70 | | | | 1,000.00 | | | | 1,013.29 | | | | 3.46 | |
| Hypothetical | | | .70 | | | | 1,000.00 | | | | 1,024.79 | | | | 3.48 | |
North Carolina Tax-Free Income Series | | | | | | | | | | | | | | | | |
| Actual | | | .68 | | | | 1,000.00 | | | | 1,015.47 | | | | 3.35 | |
| Hypothetical | | | .68 | | | | 1,000.00 | | | | 1,024.79 | | | | 3.37 | |
North Carolina Tax-Free Short-to-Medium Series | | | | | | | | | | | | | | | | |
| Actual | | | .70 | | | | 1,000.00 | | | | 1,006.55 | | | | 3.45 | |
| Hypothetical | | | .70 | | | | 1,000.00 | | | | 1,024.79 | | | | 3.48 | |
Tennessee Tax-Free Income Series | | | | | | | | | | | | | | | | |
| Actual | | | .70 | | | | 1,000.00 | | | | 1,014.08 | | | | 3.45 | |
| Hypothetical | | | .70 | | | | 1,000.00 | | | | 1,024.79 | | | | 3.46 | |
Tennessee Tax-Free Short-to-Medium Series | | | | | | | | | | | | | | | | |
| Actual | | | .70 | | | | 1,000.00 | | | | 1,004.02 | | | | 3.44 | |
| Hypothetical | | | .70 | | | | 1,000.00 | | | | 1,024.79 | | | | 3.48 | |
63
DUPREE MUTUAL FUNDS
OTHER UNAUDITED INFORMATION
June 30, 2021
Schedule of Shareholder Expenses, continued:
| | | | | | | | | | | | | | | | |
| | | Net Expense
Ratio
Annualized
June 30, 2021 | | | Beginning
Account Value
January 1, 2021* | | | Ending
Account Value
June 30, 2021** | | | Expenses Paid During
the Six Months
Ended June 30, 2021 | |
Intermediate Government Bond Series | | | | | | | | | | | | | | | | |
| Actual | | | .66 | % | | $ | 1,000.00 | | | $ | 997.57 | | | $ | 3.26 | |
| Hypothetical | | | .66 | | | | 1,000.00 | | | | 1,024.79 | | | | 3.30 | |
Taxable Municipal Bond Series | | | | | | | | | | | | | | | | |
| Actual | | | .70 | | | | 1,000.00 | | | | 1,013.49 | | | | 3.46 | |
| Hypothetical | | | .70 | | | | 1,000.00 | | | | 1,024.79 | | | | 3.48 | |
| * | | 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 [181/365] (to reflect one-half year period). |
64
Item 2. Code of Ethics: The registrant has not adopted a code of ethics that applies to the principal executive officer, principal financial officer, principal accounting officer and persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. The registrant believes that the registrant’s code of ethics established pursuant to Rule 17j-1 under the Investment Company Act of 1940 covers such officers and persons.
Item 3. Audit Committee Financial Expert: The board has determined that Marc A. Mathews possesses the attributes identified in Instruction (b) of Item 3 to Form N-CSR to qualify as an “audit committee financial expert,” and has designated Mr. Mathews as the audit committee financial expert. Mr. Mathews is an “independent” trustee pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
Item 4. Principal Accountant Fees and Services:
| | | | |
Year ended June 30, 2020: | | $ | 161,300 | |
Year ended June 30, 2021 | | $ | 128,000 | |
| | | | |
Year ended June 30, 2020: | | | None | |
Year ended June 30, 2021 | | $ | 4,718 | |
| | (c) | Tax Fees (consisting of income and excise tax compliance services) |
| | | | |
Year ended June 30, 2020: | | $ | 44,900 | |
Year ended June 30, 2021 | | $ | 40,000 | |
| | (d) | All Other Fees (Fees for all other services) |
| | | | |
Year ended June 30, 2020 | | $ | 30,900 | |
(consisted of examination of transfer agent ($11,700); Anti-Money Laundering advisory services ($9,200) and Review of Semi-Annual report ($10,000))
| | | | |
Year ended June 30, 2021 | | $ | 19,000 | |
(consisted of examination of transfer agent ($5,000); Anti-Money Laundering advisory services ($7,000) and Review of Semi-Annual report ($7,000))
| | (e) | (1) (2) The Registrant’s Audit Committee must pre-approve all audit services and non-audit services that the principal accountant provides to the Registrant. The Audit committee must also pre-approve any engagement of the principal accountant to provide non-audit services to the Registrant’s investment adviser, or any affiliate of the adviser that provides ongoing services to the Registrant, if such non-audit services directly impact the Registrant’s operations and financial reporting. All services (b) through (d) were pre-approved by the Audit Committee. |
| | (f) | The Registrant has been advised by the Principal Accountant that no persons other than full time permanent employees have been engaged to audit the Registrant’s Financial Statements for the fiscal year ended June 30, 2021. |
| | (g) | The aggregate non audit fees billed by the Registrant’s Accountant to the Registrant were: |
| | | | |
Year ended June 30, 2020: | | $ | 75,800 | |
Year ended June 30, 2021: | | $ | 59,000 | |
| | (h) | Services were pre-approved by the Registrant’s Audit Committee. |
Item 5. Not applicable.
Item 6.
| | (a) | Included as part of item 1. |
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 these disclosure controls and procedures are adequately 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 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
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: August 27, 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.
| | |
Dupree Mutual Funds |
| |
By: | | /s/ Allen E. Grimes, III |
| | Allen E. Grimes, III, President |
|
Date: August 27, 2021 |
