UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-4503
AQUILA MUNICIPAL TRUST
(Exact name of Registrant as specified in charter)
120 West 45th Street, Suite 3600
New York, New York 10036
(Address of principal executive offices) (Zip code)
Joseph P. DiMaggio
120 West 45th Street, Suite 3600
New York, New York 10036
(Name and address of agent for service)
Registrant's telephone number, including area code:
(212) 697-6666
Date of fiscal year end: 03/31/23
Date of reporting period: 09/30/23
FORM N-CSRS
ITEM 1. REPORTS TO STOCKHOLDERS.
Semi-Annual Report September 30, 2023
Aquila Tax-Free Trust of Arizona
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The Importance of Active Management
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November, 2023
Dear Fellow Shareholder:
The financial markets have continued with what has become an ongoing theme of uncertainty. Concerns about the future direction of interest rates, as well as the underlying health of the U.S. economy have kept investors guessing, wondering where we go from here. Will the Federal Reserve (the “Fed”) raise rates further, or are we approaching the end of its current monetary policy? Is the Fed able to successfully manage the economy and execute a so-called “safe landing?” Can lingering inflation be quelled enough, or might the economy enter a recession? These are all valid questions on the minds of many of our fellow shareholders. While no one has a crystal ball, of course, we believe it’s important for investors to understand the main factors driving financial markets, and to evaluate whether their portfolios are aligned with their long-term investment goals. So, let’s break things down to help keep them in perspective.
Key Factors Impacting Municipal Bonds
Interest rates are generally the primary factor impacting fixed income securities, including the municipal bonds in which your Fund invests. Since March of 2022, interest rates have risen dramatically. This has had a direct effect on bonds. And, given the inverse relationship between yields and prices, the values of most bonds fell in turn. For some investors who already owned or may continue to own municipal bonds, this may have created a sense of trepidation, as they may have seen a reduction of their principal investment, at least “on paper.” However, considering the inverse price/yield relationship, yields on those investments generally increased as a result of changing market conditions. Considering that current income is the primary objective for most fixed income investors, we feel this is an important aspect to keep in mind, particularly for those of us with a long-term time horizon. This especially applies to investors who choose to reinvest dividends earned on their bond investments. Having the dividends reinvested enables investors to take advantage of compounded earnings (earning interest on top of interest), which may contribute significantly to long-term total returns. In the case of your municipal bond fund, that means reinvesting dividends and adding to your investment principal by accumulating additional shares. As for investors who may be considering new or additional exposure to the municipal asset class, we feel that prevailing market conditions may present select opportunities given certain price declines and attractive relative valuations, in addition to the increase in yields. But even with a relatively conservative asset class such as municipal bonds, we believe it’s prudent to proceed carefully and consistent with one’s investment objectives.
When it comes to specific elements that contribute to changes in interest rates, all eyes remain focused on the Federal Reserve, as the direction of interest rates takes its
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cue from the Federal Funds rate (the rate that banks charge one another to borrow or lend excess reserves overnight). Since instituting a “tighter” monetary policy in March of 2022 in an attempt to contain inflation, while at the same time reducing its balance sheet, the Fed has to date raised rates 11 times for a total increase of 5.25%. During the Federal Open Market Committee Meeting (“FOMC”) in July, the latest increase brought the Federal Funds rate to a target range of 5.25%–5.50% — the highest level in 22 years.
Since then, the Fed decided to hold off implementing additional rate hikes at the FOMC meetings in both September and October, which marked the first time in over a year that the central bank left rates unchanged over the course of two consecutive meetings. While some forecasters have interpreted the pauses as a sign of the end of the current monetary policy, inflation remains stubbornly above the Fed’s 2% target level. Thus, others are anticipating a possible rate increase before the end of 2023, or even into 2024. In any event, Federal Reserve Chair Jerome Powell has stated that the Fed has assumed a “higher for longer” stance on interest rates, and any further action or changes to its monetary policy is dependent on economic data.
The state of the U.S. economy, along with associated data, also contributes heavily to the municipal bond market. In addition, other economic issues, both domestic and abroad, influence the economy and financial markets. The unfortunate conflicts that persist in Ukraine, and continue to develop in the Middle East, have added an additional layer of uncertainty. It’s reasonable to wonder what effect these geopolitical events may have on particular aspects of the global – and domestic – economy and specific market sectors, such as energy — and the possible ripple effects going forward. In the meantime, the municipal market has experienced a series of starts and stops during this fiscal period, as opposed to demonstrating discernable and lasting trends. As the financial markets have experienced over their long history, these recent events are stark realities that result in ever-changing conditions. There have been glimmers of encouragement during 2023, as several key indicators suggest positive economic expansion. Specifically, job growth continues to be strong, and the national unemployment rate has remained relatively low. These, as well as other better-than-expected economic results, have contributed to overall improvement in the municipal market, albeit modest.
However, municipal bonds, along with other interest rate-sensitive investments, have faced stiff headwinds as well. For instance, on August 1, 2023, Fitch Ratings downgraded the credit rating of U.S. government debt, from AAA to AA+. As a result, municipal yields rose, moving in sync with U.S. Treasury yields, which weighed heavily on the asset class. The credit rating downgrade was only the second time that occurred in our nation’s history. Previously, Standard & Poor’s downgraded the government’s credit rating (on August 5, 2011), also from AAA to AA+. The other major credit rating agency, Moody’s Investors Service, currently maintains a rating of Aaa for U.S. debt. Where the market goes from here remains to be seen. Much is reliant on its core fundamentals and relative measures. Let’s take a closer look.
Market Fundamentals
As we consider current market conditions, everything is relative, of course. And since interest rates are at the heart of municipal bond yields and valuations, the unusual shape of the yield curve has presented a combination of questions, challenges and opportunities. Although the majority of the municipal yield curve remains positively-
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sloped (as of October 31, 2023), the portion of the curve encompassing the first five years of maturity is inverted — a phenomenon that began in the fourth quarter of 2022.
For context, a distinguishing characteristic of the municipal yield curve has historically been its general upward slope, with long-term bonds typically offering higher yields than shorter-term bonds. Despite some flattening over the past year, the municipal curve has retained its upward slope between the 5-year and 30-year maturity range. Given ever-changing market conditions, your Fund’s investment management team continues to closely monitor every aspect of the yield curve, along with relative yields and valuations, seeking to identify select opportunities that this unprecedented situation offers.
From a supply and demand perspective, the national decline in new bond issuance has continued to be a significant development in the municipal bond market over the past year. This decline in new issuance is primarily due to the substantial increase in interest rates and accelerated pace of Fed rate hikes over much of the past year. Nationally, issuance from January–September of 2023 declined 13%, as compared to the first nine months of 2022. That’s on top of significant declines in the year prior. This lack of new issue supply has made sourcing bonds challenging at times. However, this slower pace of new issuance is viewed by some as a positive credit trend for municipal bonds, given that many local governments are sitting on considerable amounts of federal pandemic relief cash and running budget surpluses, and therefore, may not necessarily need to access the capital markets in the short term. Fiscal stimulus and strong revenue collections have helped many local governments and issuers maintain robust municipal credit fundamentals.
With low new issuance and elevated secondary market trading activity, institutional demand for municipal bonds is generally viewed as being relatively high. This demand is most evident in the ratio of municipal yields versus U.S. Treasury yields. As of September 30, 2023, the 5-year maturity range of AAA-rated municipal securities (as measured Bloomberg) was yielding 73% of U.S. Treasuries, which compared to 76% at the same point in 2022. For the 10-year maturity range, municipals were yielding 76% of Treasuries as of September 30, 2023, compared to 86% the previous year. While these ratios can be primarily attributed to high demand in a low-issuance market, they may also be an indication of the perceived value in the current market on a relative basis, especially when considering the federal tax-exemption generally offered. by municipal bonds.
Staying the Course
At Aquila Group of Funds, we remain optimistic in the long term for the municipal bond market. Municipal bonds are vital to financing the infrastructure of our states and local communities. Moreover, they may play an important role in an investor’s asset allocation strategy. We, therefore, believe it’s important to keep in mind the key benefits that municipal bond funds offer, particularly during periods of market change and uncertainty. And we feel it’s critical for our fellow shareholders to stay true to their individual financial goals. Below are a few key items to keep in mind when considering your investment options:
· | Investment objectives – Identify the desired results that are most important to you when it comes to an investment’s stated objectives. For example, high current income, as is consistent with preservation of capital, and tax-exempt income, among others. |
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· | Time horizon – Determine your projected need for the investment principal. Included in this may be the ability to recover potential losses due to declines in market value, particularly, if the Fed is near the end of its tightening cycle. |
· | Risk tolerance – Assess your sentiment towards risk, your ability to withstand market volatility, whether financially or emotionally, as well as your willingness to accept fluctuations in principal value. |
· | Portfolio diversification – “Don’t put all your eggs in one basket,” as the saying goes. Having a diversified portfolio of various types of investment vehicles, characteristics and correlations can help manage changing market conditions and associated risks. |
· | Consult with a financial professional – Ensure that any investment you choose is aligned with your individual financial goals, such as the items referenced above, along with any other considerations pertaining to your unique situation. A trusted financial professional can help you choose the investments that are right for you. |
Just as Aquila Group of Funds believes it is important for you – and other investors – to stay true to your individual financial goals, we too endeavor to remain aligned with the stated investment mandates for each of Aquila Group of Funds’ single-state municipal bond funds. Our goal is to achieve your Fund’s investment objective of delivering the highest level of income exempt from regular federal and state income taxes, as is consistent with preservation of capital.
Your Fund’s investment management team is locally-based in the state in which it invests. We firmly believe this is a distinguishing advantage, as it provides an up-close perspective and valuable insight into the issuers and economy in the state. Your dedicated team of investment professionals continually draws upon their many years of experience in analyzing securities, observing market and economic cycles, and recognizing risks and opportunities. Employing an active management strategy, we strive to maximize tax-exempt income while at the same time seeking to safeguard the value of our shareholders’ investments across all our municipal bond funds.
Thank you for your investment and continued confidence in Aquila Group of Funds.
Sincerely, | ||
Diana P. Herrmann, Vice Chair and President |
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Mutual fund investing involves risk and loss of principal is possible.
The market prices of the Funds’ securities may rise or decline in value due to general market conditions, such as real or perceived adverse economic, political or regulatory conditions, political instability, recessions, inflation, changes in interest rates, lack of liquidity in the bond markets, the spread of infectious illness or other public health issues, weather or climate events, armed conflict, sanctions or other government actions, market disruptions caused by tariffs, trade disputes or other factors, or adverse investor sentiment. When market prices fall, the value of your investment may go down. In the past decade, financial markets have experienced increased volatility, depressed valuations, decreased liquidity and heightened uncertainty. These conditions may continue, recur, worsen or spread.
The long-term impact of the COVID-19 pandemic and its subsequent variants on economies, markets, industries and individual issuers, are not known. Some sectors of the economy and individual issuers have experienced or may experience particularly large losses. Periods of extreme volatility in the financial markets, reduced liquidity of many instruments, increased government debt, inflation, and disruptions to supply chains, consumer demand and employee availability, may continue for some time.
Raising the ceiling on U.S. government debt has become increasingly politicized. Any failure to increase the total amount that the U.S. government is authorized to borrow could lead to a default on U.S. government obligations, with unpredictable consequences for economies and markets in the U.S. and elsewhere. Inflation and interest rates have increased and may rise further. These circumstances could adversely affect the value and liquidity of the Funds’ investments, impair the Funds’ ability to satisfy redemption requests, and negatively impact the Funds’ performance.
Economies and financial markets throughout the world are increasingly interconnected. Economic, financial or political events, trading and tariff arrangements, public health events, terrorism, wars, natural disasters and other circumstances in one country or region could have profound impacts on global economies or markets. As a result, whether or not the Funds invest in securities of issuers located in or with significant exposure to the countries or markets directly affected, the value and liquidity of the Funds’ investments may be negatively affected. Following Russia’s invasion of Ukraine, Russian securities lost all, or nearly all, their market value. Other securities or markets could be similarly affected by past or future political, geopolitical or other events or conditions. Furthermore, events involving limited liquidity, defaults, non-performance or other adverse developments that affect one industry, such as the financial services industry, or concerns or rumors about any events of these kinds, have in the past and may in the future lead to market-wide liquidity problems, may spread to other industries, and could negatively affect the value and liquidity of the Funds’ investments.
Governments and central banks, including the U.S. Federal Reserve, have taken extraordinary and unprecedented actions to support local and global economies and the financial markets. These actions have resulted in significant expansion of public debt, including in the U.S. The consequences of high public debt, including its future impact on the economy and securities markets, may not be known for some time.
The U.S. and other countries are periodically involved in disputes over trade and other matters, which may result in tariffs, investment restrictions and adverse impacts on affected companies and securities. For example, the U.S. has imposed tariffs and other trade barriers on Chinese exports, has restricted sales of certain categories of goods to China, and has established barriers to investments in China. Trade disputes may adversely affect the economies of the U.S. and its trading partners, as well as companies directly or indirectly affected and financial markets generally. If the political climate between the U.S. and China does not improve or continues to deteriorate, if China were to attempt unification of Taiwan by force, or if other geopolitical conflicts develop or get worse, economies, markets and individual securities may be severely affected both regionally and globally, and the value of the Funds’ assets may go down.
The value of your investment will generally go down when interest rates rise. A rise in interest rates tends to have a greater impact on the prices of longer term or longer duration securities. In recent years, interest rates and credit spreads in the U.S. have been at historic lows. The U.S. Federal Reserve has raised certain interest rates, and interest rates may continue to go up. A general rise in interest rates may cause investors to move out of fixed income securities on a large scale and could also result in increased redemptions from the Funds.
Investments in the Funds are subject to possible loss due to the financial failure of the issuers of underlying securities and their inability to meet their debt obligations.
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The value of municipal securities can be adversely affected by changes in the financial condition of one or more individual municipal issuers or insurers of municipal issuers, regulatory developments, legislative actions, and by uncertainties and public perceptions concerning these and other factors. The Funds may be affected significantly by adverse economic, political or other events affecting state and other municipal issuers in which they invest, and may be more volatile than a more geographically diverse fund. The municipal bond market can be susceptible to unusual volatility, particularly for lower-rated and unrated securities. Liquidity can be reduced unpredictably in response to overall economic conditions or credit tightening. Municipal issuers may be adversely affected by rising health care costs, increasing unfunded pension liabilities, and by the phasing out of federal programs providing financial support. Unfavorable conditions and developments relating to projects financed with municipal securities can result in lower revenues to issuers of municipal securities, potentially resulting in defaults. Municipal securities may be more susceptible to downgrades or defaults during a recession or similar periods of economic stress. Financial difficulties of municipal issuers may continue or get worse, particularly in the event of political, economic or market turmoil or a recession.
A portion of income may be subject to local, state, Federal and/or alternative minimum tax. Capital gains, if any, are subject to capital gains tax.
These risks may result in share price volatility.
Any information in this Semi-Annual Report regarding market or economic trends or the factors influencing the Funds’ historical or future performance are statements of opinion as of the date of this report. These statements should not be relied upon for any other purposes. Past performance is no guarantee of future results, and there is no guarantee that any market forecasts discussed will be realized.
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AQUILA TAX-FREE TRUST OF ARIZONA SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (24.6%) | Ratings Moody’s, S&P and Fitch | Value | |||
City (9.0%) | ||||||
Buckeye Jackrabbit Trail Sanitary Sewer Improvement District | ||||||
$ 175,000 | 6.250%, 01/01/29 | NR/A/NR | $ 175,878 | |||
Chandler, Arizona | ||||||
3,850,000 | 5.000%, 07/01/24 | Aaa/AAA/AAA | 3,885,766 | |||
Gilbert Improvement District No. 20 | ||||||
460,000 | 5.100%, 01/01/29 | Aa1/AA-/NR | 461,155 | |||
Goodyear, Arizona | ||||||
2,000,000 | 3.000%, 07/01/40 | Aa1/AA+/NR | 1,544,180 | |||
Goodyear McDowell Road Commercial Corridor Improvement District | ||||||
805,000 | 3.250%, 01/01/27 BAMAC Insured | Aa2/AA/NR | 790,687 | |||
Scottsdale, Arizona | ||||||
1,500,000 | 4.000%, 07/01/40 | Aaa/AAA/NR | 1,407,510 | |||
Tempe, Arizona | ||||||
2,000,000 | 5.000%, 07/01/24 | NR/AAA/AAA | 2,017,560 | |||
2,770,000 | 5.000%, 07/01/41 | NR/AAA/AAA | 2,951,823 | |||
Tempe Improvement District (Pier Town Lake) | ||||||
1,000,000 | 5.000%, 01/01/29 | Aa2/NR/NR | 1,013,180 | |||
Tucson, Arizona | ||||||
3,000,000 | 5.000%, 07/01/24 | Aa3/AA/AAA | 3,026,760 | |||
Total City | 17,274,499 | |||||
Community College (0.5%) | ||||||
Pinal Co. Community College District | ||||||
1,000,000 | 3.000%, 07/01/34 | NR/AA-/NR | 867,600 | |||
County (3.8%) | ||||||
Maricopa Co. Special Health Care District | ||||||
3,000,000 | 5.000%, 07/01/32 | Aa3/NR/AA- | 3,166,050 | |||
1,500,000 | 5.000%, 07/01/34 | Aa3/NR/AA- | 1,580,385 | |||
Yavapai Co. Jail District | ||||||
1,650,000 | 4.000%, 07/01/33 BAMAC Insured | NR/AA/AA | 1,625,300 | |||
Yuma Co. Free Library District | ||||||
1,000,000 | 4.000%, 07/01/29 | Aa3/NR/AAA | 1,003,520 | |||
Total County | 7,375,255 |
1 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF ARIZONA SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
School District (9.0%) | ||||||
Gila Co. Unified School District No. 10 (Payson) | ||||||
$ 1,000,000 | 5.000%, 07/01/28 | Aa2/NR/NR | $ 1,007,680 | |||
Maricopa Co. Elementary School District No. 1 (Phoenix) | ||||||
500,000 | 4.000%, 07/01/31 BAMAC Insured | NR/AA/NR | 501,505 | |||
1,455,000 | 5.000%, 07/01/41 AGMC Insured | NR/AA/NR | 1,511,250 | |||
Maricopa Co. Elementary School District No. 40 (Glendale) | ||||||
2,050,000 | 2.000%, 07/01/35 AGMC Insured | NR/AA/AA+ | 1,514,806 | |||
Maricopa Co. Elementary School District No. 62 (Union) | ||||||
580,000 | 4.000%, 07/01/32 BAMAC Insured | NR/AA/NR | 579,948 | |||
Maricopa Co. Elementary School District No. 66 (Roosevelt) | ||||||
1,100,000 | 5.000%, 07/01/40 BAMAC Insured | A1/AA/NR | 1,137,158 | |||
Maricopa Co. High School District No. 214 (Tolleson) | ||||||
2,000,000 | 5.000%, 07/01/24 | Aaa/AA/NR | 2,016,680 | |||
2,665,000 | 4.000%, 07/01/34 | Aaa/AA/NR | 2,673,715 | |||
Maricopa Co. Unified School District No. 11 (Peoria) | ||||||
1,480,000 | 4.000%, 07/01/25 | Aa3/AA-/NR | 1,480,178 | |||
Maricopa Co. Unified School District No. 48 (Scottsdale) | ||||||
2,350,000 | 3.000%, 07/01/34 | Aa1/AA/NR | 2,051,221 | |||
Navajo Co. Unified School District No. 10 (Show Low) | ||||||
500,000 | 4.000%, 07/01/31 AGMC Insured | NR/AA/NR | 500,470 | |||
Navajo Co. Unified School District No. 32 (Blue Ridge) | ||||||
400,000 | 5.000%, 07/01/29 AGMC Insured | NR/AA/NR | 415,080 | |||
Pima Co. Unified School District No. 6 (Marana) | ||||||
1,000,000 | 4.250%, 07/01/32 AGMC Insured | NR/AA/NR | 993,240 | |||
1,000,000 | 4.000%, 07/01/37 AGMC Insured | NR/AA/NR | 944,080 | |||
Total School District | 17,327,011 | |||||
2 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF ARIZONA SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Special District (2.3%) | ||||||
Eastmark Community Facilities District No. 1 | ||||||
$ 360,000 | 4.000%, 07/15/34 AGMC Insured | NR/AA/NR | $ 362,441 | |||
Estrella Mountain Ranch Community Facilities District | ||||||
155,000 | 5.000%, 07/15/32 AGMC Insured | NR/AA/NR | 159,932 | |||
Goodyear Community Facilities Utilities District No. 1 | ||||||
500,000 | 4.000%, 07/15/28 | Aa2/A-/NR | 497,915 | |||
Mystic Lake Pleasant Heights Community Facilities District | ||||||
470,000 | 3.000%, 07/15/28 BAMAC Insured | NR/AA/NR | 436,348 | |||
Verrado Community Facilities District #1 | ||||||
2,020,000 | 5.000%, 07/15/26 BAMAC Insured | NR/AA/NR | 2,062,097 | |||
Vistancia Community Facilities District | ||||||
850,000 | 4.000%, 07/15/25 BAMAC Insured | Aa2/AA/NR | 851,726 | |||
Total Special District | 4,370,459 | |||||
Total General Obligation Bonds | 47,214,824 | |||||
Revenue Bonds (61.4%) | ||||||
Airport (9.1%) | ||||||
Phoenix Civic Improvement Corp. Airport Bonds | ||||||
4,000,000 | 4.000%, 07/01/40 | Aa3/A+/NR | 3,742,840 | |||
3,825,000 | 5.000%, 07/01/26 AMT | Aa2/AA-/NR | 3,896,260 | |||
2,595,000 | 5.000%, 07/01/27 AMT | Aa2/AA-/NR | 2,670,514 | |||
3,850,000 | 5.000%, 07/01/31 AMT | Aa2/AA-/NR | 3,932,852 | |||
1,300,000 | 5.000%, 07/01/33 AMT | Aa3/A+/NR | 1,336,933 | |||
1,950,000 | 4.000%, 07/01/38 AMT | Aa3/A+/NR | 1,807,357 | |||
Total Airport | 17,386,756 | |||||
Charter Schools (1.5%) | ||||||
Arizona Industrial Development Authority (Candeo Schools) | ||||||
500,000 | 3.375%, 07/01/41 State Enhanced | NR/AA-/NR | 380,435 | |||
Arizona Industrial Development Authority (Equitable Schools) | ||||||
2,000,000 | 4.000%, 11/01/40 | NR/A/NR | 1,758,940 | |||
3 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF ARIZONA SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Charter Schools (continued) | ||||||
Arizona Industrial Development Authority (Greathearts Academies) | ||||||
$ 1,000,000 | 3.000%, 07/01/37 State Enhanced | NR/AA-/NR | $ 801,760 | |||
Total Charter Schools | 2,941,135 | |||||
Electric (5.3%) | ||||||
Salt River Agricultural Improvement & Power District | ||||||
3,000,000 | 4.000%, 01/01/41 | Aa1/AA+/NR | 2,793,570 | |||
4,000,000 | 5.000%, 01/01/47 | Aa1/AA+/NR | 4,145,160 | |||
3,100,000 | 5.000%, 01/01/50 | Aa1/AA+/NR | 3,196,627 | |||
Total Electric | 10,135,357 | |||||
Excise Tax (3.8%) | ||||||
Buckeye Excise Tax | ||||||
400,000 | 4.000%, 07/01/36 | NR/AA+/AA | 390,904 | |||
Cottonwood Pledged Revenue Obligations | ||||||
500,000 | 5.000%, 07/01/30 AGMC Insured | NR/AA/NR | 508,825 | |||
Flagstaff Pledged Revenue | ||||||
1,395,000 | 4.250%, 07/01/33 | NR/AA/NR | 1,407,960 | |||
Phoenix Civic Improvement Corp. (Civic Plaza) | ||||||
2,000,000 | 5.500%, 07/01/27 BHAC/FGIC Insured | Aa1/AA+/NR | 2,135,420 | |||
Santa Cruz Co. Jail District | ||||||
1,655,000 | 5.000%, 07/01/28 AGMC Insured | NR/AA/NR | 1,707,497 | |||
Scottsdale Municipal Property Corp. (Aviation) | ||||||
1,100,000 | 5.000%, 07/01/28 AMT | Aa1/AAA/AA+ | 1,133,737 | |||
Total Excise Tax | 7,284,343 | |||||
4 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF ARIZONA SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Healthcare (6.6%) | ||||||
Arizona Industrial Development Authority (Phoenix Children's Hospital) | ||||||
$ 1,000,000 | 3.000%, 02/01/45 | A1/A+/AA- | $ 697,350 | |||
Maricopa Co. Industrial Development Authority (Banner Health) | ||||||
500,000 | 4.000%, 01/01/48 | NR/AA-/AA- | 429,725 | |||
5,000,000 | 5.000%, 01/01/48 | NR/AA-/AA- | 5,033,450 | |||
2,000,000 | 5.000%, 01/01/53 | NR/AA-/AA- | 2,043,900 | |||
Maricopa Co. Industrial Development Authority (HonorHealth) | ||||||
2,250,000 | 4.125%, 09/01/38 | A2/NR/A+ | 2,032,065 | |||
2,000,000 | 3.000%, 09/01/51 | A2/NR/A+ | 1,317,460 | |||
Yavapai Co. Industrial Development Authority (Yavapai Regional Medical Center) | ||||||
1,000,000 | 5.250%, 08/01/33 | A2/NR/A+ | 1,000,130 | |||
Yuma Industrial Development Authority (Yuma Regional Medical Center) | ||||||
200,000 | 5.000%, 08/01/32 | NR/A/NR | 200,476 | |||
Total Healthcare | 12,754,556 | |||||
Higher Education (8.7%) | ||||||
Arizona Board of Regents (Arizona State University System) Green Bonds | ||||||
5,000,000 | 5.500%, 07/01/48 | Aa2/AA/NR | 5,405,800 | |||
Arizona Board of Regents (Arizona State University System) VRDO*** | ||||||
5,320,000 | 3.900%, 07/01/34 | Aa2/AA/NR | 5,320,000 | |||
Arizona Board of Regents (University of Arizona System) Speed Stimulus Plan for Economic & Educational Development | ||||||
1,000,000 | 3.125%, 08/01/39 | Aa3/A+/NR | 778,500 | |||
Arizona Board of Regents (University of Arizona System) | ||||||
2,500,000 | 5.000%, 06/01/30 | Aa2/AA-/NR | 2,545,650 | |||
105,000 | 4.000%, 06/01/38 | Aa2/AA-/NR | 99,813 | |||
5 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF ARIZONA SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Higher Education (continued) | ||||||
Phoenix Industrial Development Authority (Downtown Phoenix Student Housing) | ||||||
$ 400,000 | 5.000%, 07/01/33 | Baa3/NR/NR | $ 406,552 | |||
1,250,000 | 5.000%, 07/01/42 | Baa3/NR/NR | 1,207,125 | |||
Phoenix Industrial Development Authority (Downtown Phoenix Student Housing II) | ||||||
250,000 | 5.000%, 07/01/27 | Baa3/NR/NR | 254,245 | |||
150,000 | 5.000%, 07/01/28 | Baa3/NR/NR | 153,418 | |||
200,000 | 5.000%, 07/01/30 | Baa3/NR/NR | 204,796 | |||
300,000 | 5.000%, 07/01/32 | Baa3/NR/NR | 306,279 | |||
Total Higher Education | 16,682,178 | |||||
Housing (1.7%) | ||||||
Arizona Industrial Development Authority Green Bond MTEB (Chandler Village Apartments Project) | ||||||
4,763,988 | 2.120%, 07/01/37 FNMA Insured Series 2020 | Aaa/NR/NR | 3,341,461 | |||
Lease (2.5%) | ||||||
Arizona Board of Regents (Northern Arizona University) COP | ||||||
600,000 | 5.000%, 09/01/27 | A2/A/NR | 600,672 | |||
Maricopa Co. Unified School District No. 60 (Higley) COP | ||||||
1,000,000 | 4.250%, 06/01/47 AGMC Insured | NR/AA/NR | 885,620 | |||
Nogales Municipal Development Authority, Inc. | ||||||
615,000 | 5.000%, 06/01/28 AGMC Insured | NR/AA/NR | 634,452 | |||
810,000 | 4.000%, 06/01/33 AGMC Insured | NR/AA/NR | 797,453 | |||
2,000,000 | 4.000%, 06/01/39 AGMC Insured | NR/AA/NR | 1,850,780 | |||
Total Lease | 4,768,977 | |||||
Pollution Control (2.2%) | ||||||
Coconino Co. Pollution Control (Nevada Power Co.) | ||||||
2,000,000 | 4.125%, 09/01/32 AMT | A2/A+/NR | 1,969,040 | |||
1,000,000 | 3.750%, 03/01/39 | A2/A+/NR | 984,590 | |||
6 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF ARIZONA SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Pollution Control (continued) | ||||||
Maricopa Co. Pollution Control (El Paso Electric Co.) | ||||||
$ 375,000 | 3.600%, 02/01/40 | Baa2/NR/BBB+ | $ 302,265 | |||
250,000 | 3.600%, 04/01/40 | Baa2/NR/BBB+ | 201,212 | |||
Maricopa Co. Pollution Control (Southern California Edison Co.) | ||||||
1,000,000 | 2.400%, 06/01/35 | A2/A-/A- | 740,130 | |||
Total Pollution Control | 4,197,237 | |||||
Resource Recovery (3.7%) | ||||||
Chandler Industrial Development Authority (Intel Corporation Project) | ||||||
5,000,000 | 5.000%, 09/01/52 AMT | A2/A/NR | 5,057,400 | |||
Maricopa Co. Industrial Development Authority, (Waste Management Inc. Project) | ||||||
1,500,000 | 3.375%, 12/01/31 AMT (Mandatory Put Date 6/03/24) | NR/A-/NR | 1,489,170 | |||
Yavapai Co. Industrial Development Authority, (Waste Management Inc. Project) | ||||||
520,000 | 2.200%, 03/01/28 AMT (Mandatory Put Date 06/03/24) | NR/A-/NR | 512,283 | |||
Total Resource Recovery | 7,058,853 | |||||
Sales Tax (2.8%) | ||||||
Arizona Sports & Tourism Authority (Multipurpose Stadium Facility Project) | ||||||
5,000,000 | 5.000%, 07/01/30 BAMAC Insured | A1/AA/A | 5,284,750 | |||
Senior Living Facilities (1.1%) | ||||||
Arizona Industrial Development Authority, Second Tier (Great Lakes Senior Living Communities)††† | ||||||
620,000 | 5.000%, 01/01/28 | NR/CCC-/NR | 486,520 | |||
555,000 | 5.000%, 01/01/29 | NR/CCC-/NR | 424,392 | |||
1,205,000 | 5.000%, 01/01/30 | NR/CCC-/NR | 887,651 | |||
655,000 | 4.000%, 01/01/33 | NR/CCC-/NR | 391,513 | |||
Total Senior Living Facilities | 2,190,076 | |||||
7 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF ARIZONA SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Transportation (1.9%) | ||||||
Arizona State Transportation Board Highway Revenue Refunding | ||||||
$ 3,500,000 | 5.000%, 07/01/25 | Aa1/AA+/NR | $ 3,577,665 | |||
Utility (4.7%) | ||||||
Greater Arizona Development Authority Revenue | ||||||
500,000 | 5.000%, 08/01/28 AGMC Insured | A1/AA+/NR | 501,250 | |||
Mesa Utility System | ||||||
5,000,000 | 5.000%, 07/01/36 | Aa3/A+/NR | 5,419,800 | |||
Salt Verde Finance Corp. Gas Revenue | ||||||
3,000,000 | 5.250%, 12/01/28 | A3/BBB+/NR | 3,053,190 | |||
Total Utility | 8,974,240 | |||||
Water/Sewer (5.8%) | ||||||
Phoenix Civic Improvement Corp. Junior Lien Water System Revenue | ||||||
1,500,000 | 5.500%, 07/01/24 Series 2001 NPFG/FGIC Insured | Aa2/AAA/NR | 1,518,495 | |||
3,000,000 | 5.000%, 07/01/36 Series 2016 | Aa2/AAA/NR | 3,076,170 | |||
6,365,000 | 5.000%, 07/01/45 Series 2021A | Aa2/AAA/NR | 6,605,088 | |||
Total Water/Sewer | 11,199,753 | |||||
Total Revenue Bonds | 117,777,337 | |||||
Pre-Refunded Bonds\Escrowed to Maturity Bonds (8.1%)†† | ||||||
Pre-Refunded General Obligation\ Escrowed to Maturity Bonds (2.6%) | ||||||
City (0.7%) | ||||||
Tempe, Arizona | ||||||
1,295,000 | 3.750%, 07/01/34 | NR/NR/NR* | 1,294,042 | |||
Special District (0.7%) | ||||||
Estrella Mountain Ranch Community Facilities District | ||||||
845,000 | 5.000%, 07/15/32 AGMC Insured | NR/AA/NR | 886,726 | |||
Verrado Community Facilities Utilities District No. 1 | ||||||
500,000 | 6.000%, 07/15/33 144A | NR/NR/NR* | 500,340 | |||
Total Special District | 1,387,066 | |||||
8 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF ARIZONA SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Pre-Refunded General Obligation\Escrowed to Maturity Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
State (1.2%) | ||||||
Arizona State COP | ||||||
$ 2,220,000 | 5.000%, 10/01/24 ETM | Aa2/AA-/NR | $ 2,242,133 | |||
Total Pre-Refunded General Obligation Bonds | 4,923,241 | |||||
Pre-Refunded Revenue Bonds (5.5%) | ||||||
Healthcare (2.9%) | ||||||
Arizona Health Facilities Authority (Banner Health) | ||||||
3,000,000 | 5.000%, 01/01/44 | NR/AA-/NR | 3,006,960 | |||
Maricopa Co. Hospital Revenue (Sun Health) | ||||||
480,000 | 5.000%, 04/01/25 | NR/NR/NR* | 482,549 | |||
2,125,000 | 5.000%, 04/01/35 | NR/NR/NR* | 2,136,284 | |||
Total Healthcare | 5,625,793 | |||||
Transportation (2.6%) | ||||||
Arizona State Transportation Board Highway Revenue Refunding | ||||||
5,000,000 | 5.000%, 07/01/30 | Aa1/AA+/NR | 5,035,800 | |||
Total Pre-Refunded Revenue Bonds | 10,661,593 | |||||
Total Pre-Refunded Bonds | 15,584,834 | |||||
Total Municipal Bonds (cost $191,298,324) | 180,576,995 | |||||
Shares | Short-Term Investment (4.9%) | |||||
9,281,010 | Dreyfus Treasury Obligations Cash Management - Institutional Shares, 5.23%** (cost $9,281,010) | Aaa-mf/AAAm/NR | 9,281,010 | |||
Total Investments (cost $200,579,334 - note 4) | 99.0% | 189,858,005 | ||||
Other assets less liabilities | 1.0 | 1,843,344 | ||||
Net Assets | 100.0% | $ 191,701,349 |
9 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF ARIZONA SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Portfolio Distribution By Quality Rating | Percentage of Investments† | |
Aaa of Moody's or AAA of S&P or Fitch | 19.2% | |
Pre-refunded bonds\ ETM bonds†† | 8.6 | |
Aa of Moody's or AA of S&P or Fitch | 57.7 | |
A of Moody's or S&P or Fitch | 11.6 | |
Baa of Moody's or BBB of Fitch | 1.7 | |
CCC of S&P | 1.2 | |
100.0% |
PORTFOLIO ABBREVIATIONS |
AGMC - Assured Guaranty Municipal Corp. AMT - Alternative Minimum Tax BAMAC - Build America Mutual Assurance Co. BHAC - Berkshire Hathaway Assurance Corp. COP- Certificates of Participation ETM - Escrowed to Maturity FGIC - Financial Guaranty Insurance Co. FNMA - Federal National Mortgage Association MTEB - Multifamily Tax-Exempt Mortgage-Backed Bonds NPFG - National Public Finance Guarantee NR - Not Rated VRDO - Variable Rate Demand Obligation |
* | Any security not rated (“NR”) by any of the Nationally Recognized Statistical Rating Organizations (“NRSRO”) has been determined by the Investment Adviser to have sufficient quality to be ranked in the top four credit ratings if a credit rating were to be assigned by a NRSRO. |
** | The rate is an annualized seven-day yield at period end. |
*** | Variable rate demand obligations (“VRDOs”) are payable upon demand within the same day for securities with daily liquidity or seven days for securities with weekly liquidity. |
† | Where applicable, calculated using the highest rating of the three NRSRO. Percentages in this table do not include the Short-Term Investment. |
†† | Pre-refunded bonds are bonds for which U.S. Government Obligations usually have been placed in escrow to retire the bonds at their earliest call date. Escrowed to Maturity bonds are bonds where money has been placed in the escrow account which is used to pay principal and interest through the bond’s originally scheduled maturity date. Escrowed to Maturity are shown as ETM. All other securities in the category are pre-refunded. |
10 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF ARIZONA SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
††† | Illiquid securities: Represents 1.1% of net assets. |
Note: 144A – Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2023, these securities amounted to a value of $500,340 or 0.3% of net assets. |
See accompanying notes to financial statements.
11 | Aquila Municipal Trust
AQUILA TAX-FREE FUND OF COLORADO SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (49.3%) | Ratings Moody’s, S&P and Fitch | Value | |||
City & County (2.2%) | ||||||
Denver, Colorado City & County Elevate | ||||||
$2,000,000 | 5.000%, 08/01/33 Series 2022A | Aaa/AAA/AAA | $ 2,234,940 | |||
Englewood, Colorado | ||||||
1,000,000 | 5.000%, 12/01/30 | NR/AA+/NR | 1,046,990 | |||
Total City & County | 3,281,930 | |||||
Lease (0.7%) | ||||||
Colorado State Rural COP | ||||||
1,000,000 | 4.000%, 12/15/35 Series 2020A | Aa2/AA-/NR | 986,580 | |||
Metropolitan District (4.1%) | ||||||
Denver, Colorado Urban Renewal Authority, Tax Increment Revenue, Stapleton Senior | ||||||
2,600,000 | 5.000%, 12/01/25 Series A-1 | NR/NR/AA- | 2,600,546 | |||
Denver, Colorado Urban Renewal Authority, Tax Increment Revenue, Stapleton Senior | ||||||
1,000,000 | 5.000%, 12/01/25 Series B-1 | Aa3/NR/NR | 1,022,860 | |||
Midcities Metropolitan District No.2 Colorado, Special Revenue | ||||||
2,365,000 | 5.000%, 12/01/31 Series 2022 AGMC Insured | A1/AA/NR | 2,514,704 | |||
Total Metropolitan District | 6,138,110 | |||||
School Districts (41.5%) | ||||||
Adams 12 Five Star Schools, Colorado | ||||||
1,000,000 | 5.000%, 12/15/25 | Aa1/AA/NR | 1,028,660 | |||
1,000,000 | 5.000%, 12/15/29 | Aa1/AA/NR | 1,037,720 | |||
1,000,000 | 5.500%, 12/15/31 | Aa1/AA/NR | 1,094,090 | |||
Adams & Weld Counties, Colorado School District #27J | ||||||
2,000,000 | 5.000%, 12/01/24 | Aa2/AA/NR | 2,001,520 | |||
1,000,000 | 5.000%, 12/01/25 | Aa2/AA/NR | 1,012,960 | |||
1,060,000 | 5.000%, 12/01/28 | Aa2/AA/NR | 1,084,666 | |||
3,895,000 | 5.000%, 12/01/29 | Aa2/AA/NR | 3,983,183 | |||
1,150,000 | 5.000%, 12/01/29 | Aa2/AA/NR | 1,210,835 | |||
12 | Aquila Municipal Trust
AQUILA TAX-FREE FUND OF COLORADO SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
School Districts (continued) | ||||||
Arapahoe County, Colorado School District #006 Littleton | ||||||
$1,000,000 | 5.000%, 12/01/27 | Aa1/NR/NR | $ 1,032,860 | |||
Boulder, Larimer & Weld Counties, Colorado Series C | ||||||
2,000,000 | 5.000%, 12/15/28 | Aa1/AA+/NR | 2,078,500 | |||
Boulder, Larimer & Weld Counties, Colorado, St. Vrain Valley School District RE-1J | ||||||
1,000,000 | 5.000%, 12/15/29 Series C | Aa1/AA+/NR | 1,039,250 | |||
Boulder Valley, Colorado School District No. RE-2 | ||||||
2,500,000 | 5.000%, 12/01/36 Series 2023 | Aa1/AA+/NR | 2,734,800 | |||
Costilla County, Colorado School District No. R-30 Sierra Grande | ||||||
2,180,000 | 5.000%, 12/01/32 | Aa2/NR/NR | 2,336,873 | |||
Denver, Colorado City & County School District No. 1 | ||||||
2,000,000 | 5.000%, 12/01/29 | Aa1/AA+/AA+ | 2,074,380 | |||
Denver, Colorado City & County School District No. 1 | ||||||
2,000,000 | 5.000%, 12/01/25 Series B | Aa1/AA+/AA+ | 2,026,820 | |||
4,000,000 | 5.000%, 12/01/27 Series B | Aa1/AA+/AA+ | 4,051,840 | |||
Eagle County School District, Colorado, Eagle, Garfield & Routt School District #50J | ||||||
1,000,000 | 5.000%, 12/01/29 | Aa1/AA/NR | 1,038,700 | |||
El Paso County, Colorado School District #2, Harrison | ||||||
2,000,000 | 5.000%, 12/01/31 | Aa2/AA/NR | 2,115,940 | |||
El Paso County, Colorado School District #20 Refunding | ||||||
2,255,000 | 5.000%, 12/15/29 | Aa1/NR/NR | 2,343,509 | |||
Gunnison Watershed, Colorado School District #RE-1J | ||||||
1,100,000 | 5.000%, 12/01/40 | Aa2/NR/NR | 1,158,498 | |||
13 | Aquila Municipal Trust
AQUILA TAX-FREE FUND OF COLORADO SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
School Districts (continued) | ||||||
Jefferson County, Colorado School District #R-1 Refunding | ||||||
$2,225,000 | 5.000%, 12/15/30 | Aa1/AA/NR | $ 2,339,343 | |||
1,500,000 | 5.000%, 12/15/30 | Aa1/AA/NR | 1,595,805 | |||
2,600,000 | 5.000%, 12/15/31 | Aa1/AA/NR | 2,765,542 | |||
La Plata County, Colorado School District #9-R Durango Refunding | ||||||
3,000,000 | 4.500%, 11/01/23 | Aa2/NR/NR | 3,001,260 | |||
Larimer County, Colorado School District No. R 1 Poudre | ||||||
1,000,000 | 5.000%, 12/15/30 | Aa1/NR/AA+ | 1,059,980 | |||
Larimer, Weld & Boulder Counties, Colorado School District No. R-2J, Thompson | ||||||
520,000 | 5.000%, 12/15/34 | Aa2/AA/NR | 549,292 | |||
3,375,000 | 5.000%, 12/15/35 | Aa2/AA/NR | 3,547,901 | |||
Larimer, Weld & Boulder Counties, Colorado School District No. R-2J, Thompson Refunding | ||||||
1,500,000 | 4.250%, 12/15/24 | Aa2/NR/NR | 1,500,195 | |||
Mesa County, Colorado Valley School District No. 051, Grand Junction | ||||||
2,000,000 | 5.000%, 12/01/23 | Aa2/NR/NR | 2,002,860 | |||
Pueblo County, Colorado School District No. 60 | ||||||
1,000,000 | 5.000%, 12/15/38 Series 2020 | Aa2/AA/NR | 1,043,080 | |||
Pueblo County, Colorado School District No. 70 | ||||||
1,500,000 | 4.000%, 12/01/33 Series 2021A | Aa2/AA/NR | 1,510,095 | |||
Summit County, Colorado School District No. RE 1 Refunding | ||||||
2,000,000 | 5.000%, 12/01/28 | Aaa/NR/NR | 2,076,300 | |||
Weld County, Colorado School District No. RE-4 | ||||||
1,655,000 | 5.000%, 12/01/39 Series 2023 | Aa2/AA/NR | 1,759,910 | |||
Total School Districts | 61,237,167 | |||||
14 | Aquila Municipal Trust
AQUILA TAX-FREE FUND OF COLORADO SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Water & Sewer (0.8%) | ||||||
Central Colorado Water Conservancy District, Adams Morgan & Weld Counties | ||||||
$1,185,000 | 5.000%, 12/01/24 | NR/A/NR | $ 1,186,896 | |||
Total General Obligation Bonds | 72,830,683 | |||||
Revenue Bonds (46.0%) | ||||||
Healthcare (3.5%) | ||||||
Colorado Health Facilities Authority, Sanford | ||||||
1,000,000 | 5.000%, 11/01/32 Series 2019A | NR/A+/AA- | 1,041,840 | |||
2,165,000 | 5.000%, 11/01/34 Series 2019A | NR/A+/AA- | 2,251,773 | |||
Southeast Colorado Hospital District Enterprise, Anticipation Notes | ||||||
2,000,000 | 5.000%, 02/01/25 Series 2023 | NR/NR/NR* | 1,968,680 | |||
Total Healthcare | 5,262,293 | |||||
Higher Education (9.2%) | ||||||
Colorado Educational & Cultural Facility Authority, University of Denver Project | ||||||
845,000 | 4.000%, 03/01/24 | A1/NR/NR | 843,648 | |||
6,150,000 | 5.250%, 03/01/25 NPFG Insured | A1/A+/NR | 6,207,994 | |||
Colorado Educational & Cultural Facility Authority Refunding, University of Denver Project | ||||||
1,000,000 | 5.250%, 03/01/26 NPFG Insured | A1/A+/NR | 1,027,560 | |||
Colorado School of Mines Institutional Enterprise | ||||||
1,845,000 | 5.000%, 12/01/29 Series B | A1/A+/NR | 1,936,660 | |||
Colorado State Board Community Colleges & Occupational Education, Refunding & Improvement, Arapahoe Community College | ||||||
1,000,000 | 5.000%, 11/01/30 Series 2017A | Aa3/NR/NR | 1,046,130 | |||
Colorado State Board of Governors University Enterprise System | ||||||
1,500,000 | 5.000%, 03/01/26 Series C SHEIP Insured | Aa2/AA/NR | 1,523,265 |
15 | Aquila Municipal Trust
AQUILA TAX-FREE FUND OF COLORADO SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Higher Education (continued) | ||||||
University of Northern Colorado Greeley Institutional Enterprise Refunding | ||||||
$1,000,000 | 5.000%, 06/01/25 Series A SHEIP Insured | Aa2/AA/NR | $ 1,005,450 | |||
Total Higher Education | 13,590,707 | |||||
Lease (17.9%) | ||||||
Adams County, Colorado School District No. 1 Mapleton COP | ||||||
1,165,000 | 5.000%, 12/01/33 Series 2023 BAMAC Insured | A2/AA/NR | 1,247,447 | |||
1,335,000 | 5.000%, 12/01/36 Series 2023 BAMAC Insured | A2/AA/NR | 1,408,665 | |||
Arvada, Colorado COP | ||||||
1,190,000 | 4.000%, 12/01/29 | NR/AA+/NR | 1,199,639 | |||
Colorado State BEST COP | ||||||
2,500,000 | 5.000%, 03/15/30 Series K | Aa2/AA-/NR | 2,592,300 | |||
2,500,000 | 5.000%, 03/15/31 Series K | Aa2/AA-/NR | 2,593,100 | |||
Colorado State BEST COP | ||||||
2,000,000 | 5.000%, 03/15/31 Series M | Aa2/AA-/NR | 2,095,480 | |||
Colorado State Higher Education Capital Construction Lease | ||||||
1,690,000 | 5.000%, 11/01/26 | Aa2/AA-/NR | 1,757,127 | |||
Denver, Colorado City & County COP, Convention Center Expansion Project | ||||||
1,500,000 | 5.000%, 06/01/30 Series 2018A | Aa2/AA+/AA+ | 1,536,660 | |||
Denver, Colorado City & County COP (Fire Station & Library Facilities) | ||||||
1,065,000 | 5.000%, 12/01/25 | Aa1/AA+/AA+ | 1,093,350 | |||
Denver, Colorado City & County COP (Wellington E. Webb Municipal Office Building) | ||||||
1,000,000 | 5.000%, 12/01/36 Series 2023 | Aa1/AA+/AA+ | 1,085,170 | |||
1,715,000 | 5.000%, 12/01/37 Series 2023 | Aa1/AA+/AA+ | 1,842,219 | |||
Douglas County, Colorado COP (Libraries) | ||||||
1,570,000 | 5.000%, 12/01/27 | Aa2/NR/NR | 1,586,595 |
16 | Aquila Municipal Trust
AQUILA TAX-FREE FUND OF COLORADO SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Lease (continued) | ||||||
Foothills Park and Recreation District, Colorado COP | ||||||
$1,405,000 | 4.000%, 12/01/35 Series 2021 | NR/AA-/NR | $ 1,386,988 | |||
Foothills Park and Recreation District, Colorado COP Refunding & Improvement | ||||||
1,380,000 | 5.000%, 12/01/26 AGMC Insured | NR/AA/NR | 1,411,533 | |||
Fort Lupton, Colorado COP | ||||||
500,000 | 5.000%, 12/01/33 Series 2023 | NR/A+/NR | 512,285 | |||
Frisco, Colorado Financial Authority COP | ||||||
750,000 | 5.000%, 12/01/37 Series 2023 | Aa2/NR/NR | 777,833 | |||
Jefferson County, Colorado School District No. R-1 COP | ||||||
1,000,000 | 5.000%, 12/15/27 | Aa3/AA-/NR | 1,023,920 | |||
Thompson School District No R2-J (Larimer, Weld And Boulder Counties, Colorado COP | ||||||
750,000 | 4.500%, 12/01/26 Series 2014 | A1/NR/NR | 752,595 | |||
Westminster, Colorado COP (Municipal Courthouse Project) | ||||||
500,000 | 5.000%, 12/01/37 Series 2023 | NR/AA/NR | 532,810 | |||
Total Lease | 26,435,716 | |||||
Sales Tax (2.8%) | ||||||
Broomfield, Colorado Sales & Use Tax | ||||||
1,000,000 | 5.000%, 12/01/30 | Aa2/NR/NR | 1,048,170 | |||
City of Fruita, Colorado Sales & Use Tax | ||||||
1,110,000 | 4.000%, 10/01/33 | NR/AA-/NR | 1,115,950 | |||
Commerce City, Colorado Sales & Use Tax | ||||||
1,000,000 | 5.000%, 08/01/26 BAMAC Insured | Aa2/AA/NR | 1,020,110 | |||
Denver, Colorado City & County Dedicated Tax Revenue | ||||||
1,000,000 | 4.000%, 08/01/36 Series 2021A | Aa3/AA-/AA- | 983,720 | |||
Total Sales Tax | 4,167,950 | |||||
17 | Aquila Municipal Trust
AQUILA TAX-FREE FUND OF COLORADO SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Tax Increment (1.0%) | ||||||
Park Creek, Colorado Metropolitan District Senior Limited Property Tax Supported | ||||||
$1,475,000 | 4.000%, 12/01/35 AGMC Insured | NR/AA/A | $ 1,442,299 | |||
Transportation (2.5%) | ||||||
E-470 Public Highway Authority, Colorado Senior Revenue | ||||||
1,500,000 | 5.000%, 09/01/35 Series 2020A | A1/A+/NR | 1,610,190 | |||
Regional Transportation District, Colorado COP | ||||||
2,000,000 | 5.000%, 06/01/26 Series A | A1/AA/AA- | 2,034,900 | |||
Total Transportation | 3,645,090 | |||||
Utilities (5.5%) | ||||||
Colorado Springs, Colorado Utilities Revenue, Refunding | ||||||
1,000,000 | 5.000%, 11/15/27 Series A | Aa2/AA+/AA | 1,023,590 | |||
Colorado Springs, Colorado Utilities Revenue Refunding | ||||||
450,000 | 5.000%, 11/15/33 Series 2022B | Aa2/AA+/NR | 496,084 | |||
450,000 | 5.000%, 11/15/34 Series 2022B | Aa2/AA+/NR | 494,590 | |||
Colorado Springs, Colorado Utilities System Improvement Revenue | ||||||
1,500,000 | 5.000%, 11/15/39 Series 2023A | Aa2/AA+/NR | 1,595,580 | |||
Colorado Springs, Colorado Utilities System Revenue Refunding | ||||||
1,000,000 | 5.000%, 11/15/38 Series 2023B | Aa2/AA+/NR | 1,068,540 | |||
1,000,000 | 5.000%, 11/15/39 Series 2023B | Aa2/AA+/NR | 1,063,720 | |||
Fort Collins, Colorado Electric Utility Enterprise Revenue | ||||||
2,240,000 | 5.000%, 12/01/37 Series 2023 | NR/AA-/AA- | 2,394,381 | |||
Total Utilities | 8,136,485 | |||||
18 | Aquila Municipal Trust
AQUILA TAX-FREE FUND OF COLORADO SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Water & Sewer (3.6%) | ||||||
Arapahoe, Colorado Water & Wastewater Public Improvement District | ||||||
$1,020,000 | 5.000%, 12/01/25 | NR/AA-/NR | $ 1,033,219 | |||
Arvada, Colorado Wastewater Enterprise | ||||||
1,090,000 | 5.000%, 12/01/35 | NR/AA-/AA | 1,202,499 | |||
Arvada, Colorado Water Enterprise | ||||||
1,355,000 | 5.000%, 12/01/35 | NR/AA+/AA+ | 1,494,850 | |||
Broomfield, Colorado Sewer and Waste Water | ||||||
1,550,000 | 5.000%, 12/01/24 AGMC Insured | Aa3/AA/NR | 1,551,395 | |||
Total Water & Sewer | 5,281,963 | |||||
Total Revenue Bonds | 67,962,503 | |||||
Pre-Refunded Bonds (3.6%)†† | ||||||
Pre-Refunded Revenue Bonds (3.6%) | ||||||
Higher Education (1.8%) | ||||||
University of Colorado Enterprise System, Series A | ||||||
2,620,000 | 5.000%, 06/01/29 | Aa1/NR/AA+ | 2,671,378 | |||
Lease (1.8%) | ||||||
Rangeview Library District Project, Colorado COP | ||||||
2,515,000 | 5.000%, 12/15/27 AGMC Insured | Aa2/AA/NR | 2,582,025 | |||
Total Pre-Refunded Bonds | 5,253,403 | |||||
Total Municipal Bonds (cost $150,758,122) | 146,046,589 | |||||
Shares | Short-Term Investment (1.8%) | |||||
2,642,817 | Dreyfus Treasury Obligations Cash Management - Institutional Shares, 5.23%* (cost $2,642,817) | Aaa-mf/AAAm/NR | 2,642,817 | |||
Total Investments (cost $153,400,939 - note 4) | 100.7% | 148,689,406 | ||||
Other assets less liabilities | (0.7) | (1,101,938) | ||||
Net Assets | 100.0% | $ 147,587,468 |
19 | Aquila Municipal Trust
AQUILA TAX-FREE FUND OF COLORADO SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Portfolio Distribution By Quality Rating | Percentage of Investments† | |
Aaa of Moody's or AAA of S&P or Fitch | 3.0% | |
Prerefunded bonds†† | 3.6 | |
Aa of Moody's or AA of S&P or Fitch | 82.5 | |
Aa of Moody's or S&P | 9.6 | |
Not Rated* | 1.3 | |
100.0% |
PORTFOLIO ABBREVIATIONS |
AGMC - Assured Guaranty Municipal Corp. BAMAC - Build America Mutual Assurance Company BEST - Building Excellent Schools Today COP - Certificates of Participation NPFG - National Public Finance Guarantee NR - Not Rated SHEIP - State Higher Education Intercept Program |
* | The rate is an annualized seven-day yield at period end. |
** | Any security not rated (“NR”) by any of the Nationally Recognized Statistical Rating Organizations (“NRSRO”) has been determined by the Investment Adviser to have sufficient quality to be ranked in the top four credit ratings if a credit rating were to be assigned by a NRSRO. |
† | Where applicable, calculated using the highest rating of the three NRSRO. Percentages in this table do not include the Short-Term Investment. |
†† | Pre-refunded bonds are bonds for which U.S. Government Obligations usually have been placed in escrow to retire the bonds at their earliest call date. |
See accompanying notes to financial statements.
20 | Aquila Municipal Trust
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (5.2%) | Ratings Moody’s, S&P and Fitch | Value | |||
Bowling Green, Kentucky | ||||||
$ 1,605,000 | 2.000%, 09/01/44 Series 2021A | Aa1/NR/NR | $ 925,957 | |||
Lexington-Fayette Urban County, Kentucky | ||||||
3,600,000 | 4.000%, 09/01/29 | Aa2/AA/NR | 3,601,872 | |||
Louisville/Jefferson County, Kentucky Metro Government | ||||||
1,000,000 | 4.000%, 04/01/35 Series 2022A | Aa1/NR/AAA | 993,850 | |||
Newport, Kentucky | ||||||
620,000 | 2.000%, 02/01/38 Series 2021 AGMC Insured | NR/AA/NR | 414,786 | |||
Rowan County, Kentucky | ||||||
835,000 | 4.000%, 06/01/30 AGMC Insured | A1/AA/NR | 834,173 | |||
865,000 | 4.000%, 06/01/31 AGMC Insured | A1/AA/NR | 860,147 | |||
Warren County, Kentucky | ||||||
695,000 | 1.750%, 12/01/35 Series 2020 | Aa1/NR/NR | 482,532 | |||
Total General Obligation Bonds | 8,113,317 | |||||
Revenue Bonds (92.5%) | ||||||
State Agency (26.2%) | ||||||
Kentucky Asset & Liability Commission Federal Highway Notes | ||||||
2,000,000 | 5.000%, 09/01/26 Series A | A2/AA/A+ | 2,015,180 | |||
1,000,000 | 5.000%, 09/01/27 Series A | A2/AA/A+ | 1,014,410 | |||
Kentucky Rural Water Finance Corp. | ||||||
255,000 | 4.500%, 08/01/24 NPFG Insured | Baa2/AA-/NR | 255,084 | |||
290,000 | 4.500%, 08/01/27 NPFG Insured | Baa2/AA-/NR | 290,128 | |||
245,000 | 4.600%, 08/01/28 NPFG Insured | Baa2/AA-/NR | 245,105 | |||
315,000 | 4.625%, 08/01/29 NPFG Insured | Baa2/AA-/NR | 315,142 | |||
175,000 | 4.000%, 02/01/28 Series 2012C | NR/AA-/NR | 175,019 | |||
100,000 | 4.000%, 02/01/29 Series 2012C | NR/AA-/NR | 100,008 | |||
120,000 | 4.000%, 02/01/26 Series 2012F | NR/AA-/NR | 120,007 | |||
125,000 | 4.000%, 02/01/27 Series 2012F | NR/AA-/NR | 125,011 | |||
130,000 | 4.000%, 02/01/28 Series 2012F | NR/AA-/NR | 130,014 | |||
140,000 | 4.000%, 02/01/29 Series 2012F | NR/AA-/NR | 140,011 | |||
265,000 | 2.000%, 02/01/35 Series 2020I | NR/AA-/NR | 192,803 | |||
475,000 | 2.000%, 02/01/36 Series 2020I | NR/AA-/NR | 335,925 | |||
21 | Aquila Municipal Trust
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
State Agency (continued) | ||||||
Kentucky Rural Water Finance Corp. (continued) | ||||||
$ 280,000 | 2.000%, 02/01/37 Series 2020I | NR/AA-/NR | $ 190,425 | |||
615,000 | 3.000%, 08/01/31 Series 2021D | NR/AA-/NR | 552,658 | |||
625,000 | 3.000%, 08/01/32 Series 2021D | NR/AA-/NR | 554,200 | |||
580,000 | 3.000%, 08/01/33 Series 2021D | NR/AA-/NR | 506,189 | |||
Kentucky State Office Building COP | ||||||
2,250,000 | 4.000%, 04/15/27 | A1/NR/NR | 2,256,098 | |||
1,640,000 | 5.000%, 06/15/34 | A1/NR/NR | 1,652,431 | |||
Kentucky State Property and Buildings Commission | ||||||
625,000 | 4.000%, 04/01/26 Project 105 | A1/A/AA- | 625,069 | |||
655,000 | 4.000%, 04/01/27 Project 105 | A1/A/AA- | 655,098 | |||
3,000,000 | 5.000%, 08/01/33 Project 108 | A1/A/AA- | 3,029,220 | |||
5,000,000 | 5.000%, 08/01/32 Project 110 | A1/A/AA- | 5,052,200 | |||
2,040,000 | 5.000%, 11/01/27 Project 112 | A1/A/AA- | 2,104,056 | |||
1,425,000 | 5.000%, 11/01/28 Project 112 | A1/A/AA- | 1,468,505 | |||
2,500,000 | 5.000%, 02/01/31 Project 112 | A1/A/AA- | 2,552,875 | |||
1,400,000 | 4.000%, 10/01/30 Project 114 | A1/A/AA- | 1,404,802 | |||
1,000,000 | 5.000%, 04/01/29 Project 115 | A1/A/AA- | 1,033,980 | |||
2,000,000 | 5.000%, 05/01/30 Project 117 | A1/NR/AA- | 2,062,400 | |||
500,000 | 5.000%, 05/01/36 Project 117 | A1/NR/AA- | 514,195 | |||
1,490,000 | 5.000%, 05/01/24 Project 119 | A1/A/AA- | 1,497,107 | |||
1,015,000 | 5.000%, 05/01/25 Project 119 | A1/A/AA- | 1,029,809 | |||
1,000,000 | 5.000%, 02/01/28 Project 121 | A1/NR/AA- | 1,045,320 | |||
1,750,000 | 4.000%, 11/01/37 Project 122A | A1/NR/AA- | 1,585,868 | |||
1,000,000 | 5.000%, 05/01/33 Project 126 | A1/NR/AA- | 1,077,680 | |||
3,000,000 | 5.000%, 06/01/33 Project 127A | A1/NR/AA- | 3,234,450 | |||
Total State Agency | 41,138,482 | |||||
Airports (2.7%) | ||||||
Louisville, Kentucky Regional Airport Authority | ||||||
2,325,000 | 5.000%, 07/01/26 AMT | NR/A+/A+ | 2,324,163 | |||
1,895,000 | 5.000%, 07/01/27 Series A AMT | NR/A+/A+ | 1,894,147 | |||
Total Airports | 4,218,310 | |||||
22 | Aquila Municipal Trust
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
City (1.1%) | ||||||
River City Parking Authority of River City, Inc., Kentucky First Mortgage Refunding | ||||||
$ 780,000 | 2.000%, 12/01/33 Series 2021A | Aa3/AA-/NR | $ 601,552 | |||
800,000 | 2.000%, 12/01/34 Series 2021A | Aa3/AA-/NR | 602,704 | |||
810,000 | 2.000%, 12/01/35 Series 2021A | Aa3/AA-/NR | 587,866 | |||
Total City | 1,792,122 | |||||
City & County (0.5%) | ||||||
Louisville & Jefferson County Visitors & Convention Commission (Kentucky International Convention Center Expansion Project) | ||||||
1,000,000 | 3.125%, 06/01/41 Series 2016 | Aa3/A/NR | 746,700 | |||
Excise Tax (1.1%) | ||||||
Kentucky Bond Development Corp. Transient Room Tax Revenue (Lexington Center Corporation) Subordinate | ||||||
1,585,000 | 5.000%, 09/01/27 Series 2018B | A3/NR/NR | 1,637,717 | |||
Healthcare (4.4%) | ||||||
City of Ashland, Kentucky, Medical Center (King's Daughter) | ||||||
1,000,000 | 4.000%, 02/01/36 Series 2016A | Baa1/A-/A | 904,770 | |||
460,000 | 5.000%, 02/01/31 Series 2019 | Baa1/A-/A | 463,749 | |||
450,000 | 5.000%, 02/01/32 Series 2019 | Baa1/A-/A | 453,132 | |||
2,600,000 | 3.000%, 02/01/40 Series 2019 AGMC Insured | A1/AA/A | 1,879,774 | |||
Louisville & Jefferson County, Kentucky Metropolitan Government Health System, Norton Healthcare, Inc. | ||||||
2,500,000 | 5.000%, 10/01/31 Series A | NR/A/A+ | 2,536,100 | |||
Warren County, Kentucky, Warren County Community Hospital Corp. | ||||||
680,000 | 4.000%, 10/01/29 | NR/AA-/NR | 680,007 | |||
Total Healthcare | 6,917,532 | |||||
23 | Aquila Municipal Trust
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Higher Education (13.7%) | ||||||
Boyle County, Kentucky Educational Facilities Refunding (Centre College) | ||||||
$ 2,050,000 | 5.000%, 06/01/28 Series 2017 | A3/A/NR | $ 2,104,776 | |||
1,000,000 | 5.000%, 06/01/29 Series 2017 | A3/A/NR | 1,021,460 | |||
Eastern Kentucky University General Receipts | ||||||
1,230,000 | 5.000%, 10/01/30 Series A | A1/NR/NR | 1,289,003 | |||
870,000 | 4.500%, 04/01/32 Series A | A1/NR/NR | 870,922 | |||
Kentucky Bond Development Corp. Educational Facilities, City of Danville (Centre College) | ||||||
305,000 | 4.000%, 06/01/34 Series 2021 | A3/A/NR | 291,733 | |||
Kentucky Bond Development Corp. Educational Facilities Revenue Refunding, City of Stamping Ground (Transylvania University Project) | ||||||
645,000 | 3.000%, 03/01/38 Series 2021A | NR/A-/NR | 490,839 | |||
Kentucky Bond Development Corp. Industrial Building Revenue, City of Stamping Ground (Transylvania University Project) | ||||||
510,000 | 4.000%, 03/01/33 Series 2019B | NR/A-/NR | 486,795 | |||
610,000 | 4.000%, 03/01/34 Series 2019B | NR/A-/NR | 577,871 | |||
Kentucky State University COP | ||||||
300,000 | 4.000%, 11/01/34 Series 2021 BAMI Insured | NR/AA/NR | 300,318 | |||
310,000 | 4.000%, 11/01/36 Series 2021 BAMI Insured | NR/AA/NR | 301,611 | |||
740,000 | 4.000%, 11/01/38 Series 2021 BAMI Insured | NR/AA/NR | 691,256 | |||
Louisville & Jefferson County, Kentucky Metropolitan Government College Improvement (Bellarmine University Project) | ||||||
2,270,000 | 5.000%, 05/01/33 | Ba1/NR/NR | 2,110,623 | |||
Morehead State University, Kentucky General Receipts | ||||||
1,000,000 | 5.000%, 04/01/29 Series A | A1/NR/NR | 1,012,330 | |||
1,000,000 | 4.000%, 04/01/31 Series A | A1/NR/NR | 1,001,750 | |||
24 | Aquila Municipal Trust
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Higher Education (continued) | ||||||
Murray State University Project, Kentucky General Receipts | ||||||
$ 1,850,000 | 4.500%, 03/01/30 Series A | A1/NR/NR | $ 1,861,100 | |||
1,230,000 | 3.000%, 09/01/35 Series 2022A | A1/NR/NR | 1,030,174 | |||
Northern Kentucky University, Kentucky General Receipts | ||||||
990,000 | 3.000%, 09/01/40 Series A AGMC Insured | A1/AA/NR | 738,728 | |||
University of Kentucky COP | ||||||
1,000,000 | 4.000%, 05/01/39 2011 Series 2019A | Aa3/AA/NR | 930,600 | |||
University of Kentucky, Kentucky General Receipts | ||||||
2,715,000 | 3.000%, 04/01/39 Series A | Aa2/AA+/NR | 2,182,208 | |||
University of Louisville, Kentucky General Receipts | ||||||
1,235,000 | 3.000%, 09/01/32 Series 2021B BAMI Insured | A1/AA/NR | 1,095,828 | |||
1,275,000 | 3.000%, 09/01/33 Series 2021B BAMI Insured | A1/AA/NR | 1,116,135 | |||
Total Higher Education | 21,506,060 | |||||
Housing (1.9%) | ||||||
Kentucky Housing Corp. Multifamily (Churchill Park) | ||||||
3,000,000 | 4.650%, 05/01/25 144A | NR/NR/NR* | 2,968,500 | |||
Local Public Property (7.1%) | ||||||
Jefferson County, Kentucky Capital Projects | ||||||
1,950,000 | 4.375%, 06/01/24 AGMC Insured | A1/NR/AA+ | 1,950,624 | |||
1,640,000 | 4.375%, 06/01/28 AGMC Insured | A1/NR/AA+ | 1,648,118 | |||
1,070,000 | 4.375%, 06/01/27 Series A AGMC Insured | A1/NR/AA+ | 1,075,318 | |||
25 | Aquila Municipal Trust
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Local Public Property (continued) | ||||||
Kentucky Association of Counties Finance Corp. Financing Program | ||||||
$ 350,000 | 4.000%, 02/01/25 | NR/AA-/NR | $ 349,703 | |||
30,000 | 4.250%, 02/01/24 Series A | NR/AA-/NR | 29,996 | |||
345,000 | 5.000%, 02/01/24 Series B | NR/AA-/NR | 345,783 | |||
365,000 | 5.000%, 02/01/25 Series B | NR/AA-/NR | 369,358 | |||
385,000 | 5.000%, 02/01/26 Series B | NR/AA-/NR | 394,348 | |||
380,000 | 3.000%, 02/01/30 Series C | NR/AA-/NR | 350,356 | |||
460,000 | 3.000%, 02/01/32 Series D | NR/AA-/NR | 410,844 | |||
470,000 | 3.000%, 02/01/33 Series D | NR/AA-/NR | 411,729 | |||
1,210,000 | 3.000%, 02/01/38 Series E | NR/AA-/NR | 943,316 | |||
Kentucky Bond Corp. Financing Program | ||||||
575,000 | 2.000%, 02/01/37 2021 First Series A | NR/AA-/NR | 385,779 | |||
590,000 | 2.000%, 02/01/38 2021 First Series A | NR/AA-/NR | 378,939 | |||
600,000 | 2.000%, 02/01/39 2021 First Series A | NR/AA-/NR | 374,946 | |||
1,295,000 | 4.000%, 02/01/34 2023 First Series A | NR/AA-/NR | 1,231,105 | |||
730,000 | 3.000%, 02/01/41 2020 Series F | NR/AA-/NR | 541,981 | |||
Total Local Public Property | 11,192,243 | |||||
School Building (21.2%) | ||||||
Adair County, Kentucky School District Finance Corp. | ||||||
1,495,000 | 4.250%, 09/01/36 Series 2023 | A1/NR/NR | 1,452,258 | |||
Anderson County, Kentucky School District Finance Corp. | ||||||
1,015,000 | 4.125%, 02/01/32 Series 2023 | A1/NR/NR | 1,014,127 | |||
Beechwood, Kentucky Independent School District Finance Corp. | ||||||
645,000 | 4.000%, 08/01/31 Series 2022 | A1/NR/NR | 637,608 | |||
Bullitt County, Kentucky School District Finance Corp. | ||||||
970,000 | 1.875%, 12/01/36 Series 2020 | A1/NR/NR | 667,583 | |||
Campbellsville, Kentucky Independent School District Finance Corp. | ||||||
870,000 | 4.000%, 08/01/36 Series 2023 | A1/NR/NR | 794,997 | |||
26 | Aquila Municipal Trust
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
School Building (continued) | ||||||
Christian County, Kentucky School District Finance Corp. | ||||||
$ 2,000,000 | 4.000%, 10/01/37 Series 2023 AGMC Insured | A1/AA/NR | $ 1,883,320 | |||
Fayette County, Kentucky School District Finance Corp. | ||||||
3,000,000 | 5.000%, 08/01/31 | Aa3/AA-/NR | 3,024,420 | |||
Hopkins County, Kentucky School District Finance Corp. | ||||||
1,500,000 | 2.000%, 02/01/39 Series 2021 | A1/NR/NR | 977,370 | |||
Jefferson County, Kentucky School District Finance Corp. | ||||||
805,000 | 5.000%, 04/01/28 Series A | Aa3/AA-/NR | 815,803 | |||
1,075,000 | 4.500%, 04/01/32 Series A | Aa3/AA-/NR | 1,086,062 | |||
4,000,000 | 4.000%, 07/01/26 Series B | Aa3/AA-/NR | 4,000,560 | |||
1,655,000 | 4.000%, 11/01/29 Series C | Aa3/AA-/NR | 1,655,348 | |||
Johnson County, Kentucky School District Finance Corp. | ||||||
1,080,000 | 4.000%, 04/01/32 Series 2023 | A1/NR/NR | 1,063,541 | |||
Kenton County, Kentucky School District Finance Corp. | ||||||
2,040,000 | 3.000%, 02/01/31 Series 2022 | A1/NR/NR | 1,808,766 | |||
1,080,000 | 4.000%, 08/01/37 Series 2023A | A1/NR/NR | 983,902 | |||
Lewis County, Kentucky School District Finance Corp. | ||||||
1,600,000 | 2.000%, 02/01/39 Series 2021 | A1/NR/NR | 1,084,992 | |||
Logan County, Kentucky School District Finance Corp., Energy Conservation Revenue Bonds | ||||||
575,000 | 4.000%, 04/01/33 Series 2016 | A1/NR/NR | 572,194 | |||
615,000 | 4.000%, 04/01/34 Series 2016 | A1/NR/NR | 609,293 | |||
Pulaski County, Kentucky School District Finance Corp. School Building | ||||||
1,510,000 | 4.125%, 06/01/34 Series 2023 | A1/NR/NR | 1,459,959 | |||
Scott County, Kentucky School District Finance Corp. School Building | ||||||
2,000,000 | 4.000%, 02/01/32 | Aa3/NR/NR | 1,988,720 | |||
27 | Aquila Municipal Trust
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
School Building (continued) | ||||||
Shelby County, Kentucky School District Finance Corp. School Building | ||||||
$ 3,200,000 | 4.000%, 02/01/28 | A1/NR/NR | $ 3,213,536 | |||
2,440,000 | 4.000%, 02/01/29 | A1/NR/NR | 2,448,369 | |||
Total School Building | 33,242,728 | |||||
Student Loan (2.6%) | ||||||
Kentucky Higher Education Student Loan | ||||||
400,000 | 5.000%, 06/01/24 Senior Series A AMT | NR/AAA/A | 401,436 | |||
600,000 | 5.000%, 06/01/26 Senior Series A AMT | NR/A/A | 606,960 | |||
500,000 | 4.000%, 06/01/34 Senior Series A AMT | NR/A/A | 466,710 | |||
750,000 | 5.000%, 06/01/28 Senior Series 2019A-1 AMT | NR/A/A | 760,755 | |||
1,000,000 | 5.000%, 06/01/28 Senior Series 2021A-1 AMT | NR/A/A | 1,014,340 | |||
350,000 | 5.000%, 06/01/31 Senior Series 2021A-1 AMT | NR/A/A | 354,904 | |||
500,000 | 4.000%, 06/01/37 Senior Series 2023A-1 AMT | NR/A/NR | 444,465 | |||
Total Student Loan | 4,049,570 | |||||
Turnpike/Highway (6.2%) | ||||||
Kentucky State Turnpike Authority | ||||||
4,030,000 | 5.000%, 07/01/30 Series A | Aa3/A/AA- | 4,085,493 | |||
1,715,000 | 5.000%, 07/01/31 Series B | Aa3/A/NR | 1,756,537 | |||
2,925,000 | 5.000%, 07/01/33 Series B | Aa3/A/NR | 2,993,533 | |||
900,000 | 5.000%, 07/01/28 Series 2022B | Aa3/NR/NR | 950,112 | |||
Total Turnpike/Highway | 9,785,675 | |||||
Utilities (3.8%) | ||||||
Boone County, Kentucky Pollution Control | ||||||
1,000,000 | 3.700%, 08/01/27 Series 2008A | Baa1/BBB+/NR | 958,500 | |||
Carroll County, Kentucky Environmental Facilities | ||||||
2,000,000 | 3.375%, 02/01/26 Series 2018A AMT | A1/A/NR | 1,896,380 | |||
28 | Aquila Municipal Trust
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Utilities (continued) | ||||||
Louisville & Jefferson County, Kentucky Metropolitan Sewer District | ||||||
$ 1,920,000 | 4.500%, 05/15/30 Series A | Aa3/AA/NR | $ 1,928,352 | |||
Murray, Kentucky Electric Plant Board | ||||||
1,380,000 | 3.000%, 12/01/35 Series 2021 AGMC Insured | A1/AA/NR | 1,159,559 | |||
Total Utilities | 5,942,791 | |||||
Total Revenue Bonds | 145,138,430 | |||||
Pre-Refunded Bonds (1.7%)†† | ||||||
Pre-Refunded Revenue Bonds (1.7%) | ||||||
Healthcare (1.7%) | ||||||
Louisville & Jefferson County, Kentucky Metropolitan Government Health System, Norton Healthcare, Inc. | ||||||
2,710,000 | 5.000%, 10/01/27 Series A | NR/A/A+ | 2,710,000 | |||
Total Pre-Refunded Bonds | 2,710,000 | |||||
Total Municipal Bonds (cost $169,034,878) | 155,961,747 | |||||
Shares | Short-Term Investment (0.5%) | |||||
849,850 | Dreyfus Treasury Obligations Cash Management - Institutional Shares, 5.23%** (cost $849,850) | Aaa-mf/AAAm/NR | 849,850 | |||
Total Investments (cost $169,884,728 - note 4) | 99.9% | 156,811,597 | ||||
Other assets less liabilities | 0.1 | 123,957 | ||||
Net Assets | 100.0% | $ 156,935,554 |
29 | Aquila Municipal Trust
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Portfolio Distribution By Quality Rating | Percentage of Investments† | |
AAA of S&P or Fitch | 0.9% | |
Pre-refunded bonds†† | 1.7 | |
Aa of Moody's or AA of S&P or Fitch | 61.1 | |
A of Moody's or S&P or Fitch | 32.4 | |
Baa of Moody's or BBB of S&P | 0.6 | |
Ba1 of Moody's | 1.4 | |
Not Rated* | 1.9 | |
100.0% |
PORTFOLIO ABBREVIATIONS |
AGMC - Assured Guaranty Municipal Corp. AMT - Alternative Minimum Tax BAMI - Build America Mutual Insurance COP - Certificates of Participation NPFG - National Public Finance Guarantee NR - Not Rated |
* | Any security not rated (“NR”) by any of the Nationally Recognized Statistical Rating Organizations (“NRSRO”) has been determined by the Investment Adviser to have sufficient quality to be ranked in the top four credit ratings if a credit rating were to be assigned by a NRSRO. |
** | The rate is an annualized seven-day yield at period end. |
† | Where applicable, calculated using the highest rating of the three NRSRO. Percentages in this table do not include the Short-Term Investment. |
†† | Pre-refunded bonds are bonds for which U.S. Government Obligations usually have been placed in escrow to retire the bonds at their earliest call date. |
Note: 144A – Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2023, these securities amounted to a value of $2,968,500 or 1.9% of net assets. |
See accompanying notes to financial statements.
30 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (61.5%) | Ratings Moody’s, S&P and Fitch | Value | |||
City & County (7.5%) | ||||||
Bend, Oregon | ||||||
$ 2,690,000 | 5.000%, 06/01/32 | NR/AA+/NR | $ 2,972,800 | |||
Benton County, Oregon Full Faith Credit Obligations | ||||||
500,000 | 5.000%, 06/01/39 Series 2023 | Aa1/NR/NR | 532,730 | |||
Boardman, Oregon Green Bond | ||||||
1,000,000 | 4.000%, 06/15/33 Series 2021 BAMAC Insured | NR/AA/NR | 1,002,630 | |||
Clackamas County, Oregon Refunding | ||||||
1,135,000 | 4.000%, 06/01/24 | Aaa/NR/NR | 1,135,068 | |||
Clackamas County, Oregon (Tax-Exempt) | ||||||
1,485,000 | 5.000%, 06/01/25 Series 2016B | Aaa/NR/NR | 1,515,086 | |||
Clatsop County, Oregon | ||||||
1,000,000 | 5.000%, 06/15/32 | Aa2/NR/NR | 1,072,870 | |||
Deschutes, Oregon Public Library District | ||||||
1,000,000 | 4.000%, 06/01/31 Series 2021 | Aa2/NR/NR | 1,031,370 | |||
Lake Oswego, Oregon Refunding | ||||||
3,140,000 | 4.000%, 12/01/30 | Aaa/AAA/NR | 3,173,158 | |||
Lebanon, Oregon Refunding | ||||||
1,050,000 | 5.000%, 06/01/24 | A1/NR/NR | 1,050,976 | |||
1,165,000 | 5.000%, 06/01/25 | A1/NR/NR | 1,183,337 | |||
McMinnville, Oregon Refunding | ||||||
2,075,000 | 5.000%, 02/01/27 | Aa3/NR/NR | 2,102,805 | |||
Multnomah County, Oregon | ||||||
3,000,000 | 5.000%, 06/01/30 | Aaa/AAA/NR | 3,145,380 | |||
Portland, Oregon Limited Tax, Build Portland & Fuel Stations Projects | ||||||
1,210,000 | 5.000%, 04/01/36 2017 Series 2022D | Aaa/NR/NR | 1,319,190 | |||
Portland, Oregon Limited Tax, Sellwood Bridge & Archive Space Projects | ||||||
1,640,000 | 4.000%, 04/01/29 2017 Series A | Aaa/NR/NR | 1,656,285 | |||
1,710,000 | 4.000%, 04/01/30 2017 Series A | Aaa/NR/NR | 1,724,962 | |||
1,775,000 | 4.000%, 04/01/31 2017 Series A | Aaa/NR/NR | 1,788,064 | |||
Portland, Oregon Public Safety | ||||||
1,345,000 | 5.000%, 06/15/25 Series A | Aaa/NR/NR | 1,373,379 | |||
31 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
City & County (continued) | ||||||
Redmond, Oregon Full Faith and Credit Bonds | ||||||
$ 1,140,000 | 5.000%, 06/01/34 Series B-1 | Aa2/NR/NR | $ 1,217,201 | |||
Salem, Oregon | ||||||
3,000,000 | 5.000%, 06/01/38 Series 2023B | Aa2/NR/NR | 3,210,360 | |||
Tualatin, Oregon | ||||||
750,000 | 5.000%, 06/15/39 Series 2023 | Aa1/NR/NR | 799,253 | |||
Total City & County | 33,006,904 | |||||
Community College (5.0%) | ||||||
Blue Mountain Community College District Umatilla, Oregon Morrow and Baker Counties Oregon (Umatilla and Morrow Counties Service Area) | ||||||
970,000 | 4.000%, 06/15/27 Series 2015 | NR/AA+/NR | 973,230 | |||
Chemeketa, Oregon Community College District | ||||||
2,000,000 | 5.000%, 06/15/25 | NR/AA+/NR | 2,018,040 | |||
Clackamas, Oregon Community College District | ||||||
1,405,000 | 5.000%, 06/15/27 Series A | Aa1/AA+/NR | 1,432,412 | |||
Columbia Gorge, Oregon Community College District, Refunding | ||||||
1,000,000 | 4.000%, 06/15/24 | Aa1/NR/NR | 1,000,060 | |||
Lane, Oregon Community College | ||||||
1,840,000 | 5.000%, 06/15/24 | NR/AA+/NR | 1,840,994 | |||
1,735,000 | 4.000%, 06/15/32 Series 2020A | Aa1/NR/NR | 1,764,651 | |||
1,070,000 | 4.000%, 06/15/34 Series 2020 A | Aa1/NR/NR | 1,085,654 | |||
Linn Benton, Oregon Community College | ||||||
1,520,000 | 5.000%, 06/01/27 | NR/AA+/NR | 1,548,500 | |||
Mount Hood, Oregon Community College District Refunding | ||||||
1,865,000 | 5.000%, 06/01/27 | Aa2/NR/NR | 1,926,284 | |||
1,000,000 | 5.000%, 06/01/29 | Aa2/NR/NR | 1,030,810 | |||
Oregon Coast Community College District State | ||||||
1,770,000 | 5.000%, 06/15/25 | Aa1/NR/NR | 1,770,708 | |||
32 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Community College (continued) | ||||||
Portland, Oregon Community College District | ||||||
$ 1,250,000 | 5.000%, 06/15/38 Series 2023 | NR/AA+/NR | $ 1,337,937 | |||
Rogue, Oregon Community College District | ||||||
1,375,000 | 4.000%, 06/15/29 Series B | Aa1/NR/NR | 1,383,553 | |||
Tillamook Bay, Oregon Community College District | ||||||
1,290,000 | 5.000%, 06/15/35 Series 2023B | NR/AA+/NR | 1,411,041 | |||
1,450,000 | 5.000%, 06/15/36 Series 2023B | NR/AA+/NR | 1,570,539 | |||
Total Community College | 22,094,413 | |||||
Healthcare (1.1%) | ||||||
Nehalem Bay, Oregon Health District | ||||||
2,655,000 | 5.000%, 06/15/44 Series 2023A | NR/A/NR | 2,674,275 | |||
Umatilla, Oregon Hospital District #1 | ||||||
2,500,000 | 4.750%, 06/01/43 Series 2023 | NR/A/NR | 2,294,250 | |||
Total Healthcare | 4,968,525 | |||||
School District (34.0%) | ||||||
Benton & Linn Counties, Oregon School District #509J (Corvallis) | ||||||
2,000,000 | 5.000%, 06/15/31 Series B | Aa1/AA+/NR | 2,107,960 | |||
1,615,000 | 5.000%, 06/15/32 Series B | Aa1/AA+/NR | 1,702,985 | |||
Clackamas County, Oregon School District #7J (Lake Oswego) | ||||||
1,400,000 | 4.000%, 06/01/33 | Aa2/AA+/NR | 1,402,492 | |||
Clackamas County, Oregon School District #12 (North Clackamas) | ||||||
3,205,000 | 5.000%, 06/15/30 | Aa1/AA+/NR | 3,355,539 | |||
4,725,000 | 5.000%, 06/15/31 | Aa1/AA+/NR | 4,938,570 | |||
1,100,000 | 5.000%, 06/15/32 | Aa1/NR/NR | 1,164,790 | |||
1,000,000 | 5.000%, 06/15/35 | Aa1/NR/NR | 1,053,260 | |||
2,160,000 | 5.000%, 06/15/29 Series B | Aa1/AA+/NR | 2,262,211 | |||
3,000,000 | 5.000%, 06/15/37 Series B | Aa1/AA+/NR | 3,081,210 | |||
33 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
School District (continued) | ||||||
Clackamas County, Oregon School District #62 (Oregon City) | ||||||
$ 1,310,000 | 5.000%, 06/15/31 Series B | Aa1/AA+/NR | $ 1,387,670 | |||
Clackamas & Washington Counties, Oregon School District No. 3JT (West Linn-Wilsonville) | ||||||
3,500,000 | 5.000%, 06/15/26 | Aa1/AA+/NR | 3,568,285 | |||
5,500,000 | 5.000%, 06/15/27 | Aa1/AA+/NR | 5,605,490 | |||
1,115,000 | 5.000%, 06/15/28 | Aa1/AA+/NR | 1,136,754 | |||
1,000,000 | 5.000%, 06/15/34 | Aa1/NR/NR | 1,100,900 | |||
Clatsop County, Oregon School District #1C (Astoria) | ||||||
1,080,000 | 5.000%, 06/15/31 Series B | Aa1/NR/NR | 1,158,635 | |||
1,215,000 | 5.000%, 06/15/32 Series B | Aa1/NR/NR | 1,300,305 | |||
Clatsop County, Oregon School District #10 (Seaside) | ||||||
1,000,000 | 5.000%, 06/15/29 Series B | Aa1/AA+/NR | 1,044,500 | |||
Clatsop County, Oregon School District #30 (Warrenton-Hammond) | ||||||
1,590,000 | 5.000%, 06/15/31 Series B | Aa1/NR/NR | 1,697,309 | |||
1,145,000 | 5.000%, 06/15/32 Series B | Aa1/NR/NR | 1,222,345 | |||
1,115,000 | 5.000%, 06/15/34 Series B | Aa1/NR/NR | 1,188,635 | |||
Columbia County, Oregon School District #502 (St. Helens) | ||||||
1,000,000 | 5.000%, 06/15/34 | Aa1/NR/NR | 1,043,790 | |||
Coos County, Oregon School District #9 (Coos Bay) | ||||||
1,035,000 | 5.000%, 06/15/32 | NR/AA+/NR | 1,098,259 | |||
Curry County, Oregon School District #1 (Central Curry) | ||||||
500,000 | 5.000%, 06/15/39 Series 2023B | NR/AA+/NR | 524,290 | |||
Deschutes County, Oregon Administrative School District #1 (Bend - La Pine) | ||||||
3,000,000 | 4.000%, 06/15/30 | Aa1/AA+/NR | 3,033,360 | |||
1,470,000 | 4.000%, 06/15/32 | Aa1/NR/NR | 1,478,967 | |||
1,540,000 | 5.000%, 06/15/37 | Aa1/NR/NR | 1,669,560 | |||
34 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
School District (continued) | ||||||
Greater Albany School District, Oregon #8J (Linn & Benton Counties) | ||||||
$ 1,000,000 | 5.000%, 06/15/30 Series 2017 | Aa1/AA+/NR | $ 1,045,550 | |||
2,035,000 | 5.000%, 06/15/32 Series 2017 | Aa1/AA+/NR | 2,124,845 | |||
Hood River County, Oregon School District | ||||||
2,260,000 | 4.000%, 06/15/30 | NR/AA+/NR | 2,273,763 | |||
2,400,000 | 4.000%, 06/15/31 | NR/AA+/NR | 2,413,512 | |||
Jackson County, Oregon School District #5 (Ashland) | ||||||
1,620,000 | 5.000%, 06/15/33 Series 2019 | Aa1/AA+/NR | 1,732,412 | |||
1,000,000 | 5.000%, 06/15/42 Series 2019 | Aa1/AA+/NR | 1,034,170 | |||
Jackson County, Oregon School District #6 (Central Point) | ||||||
2,665,000 | 5.000%, 06/15/31 | Aa1/NR/NR | 2,859,039 | |||
Jackson County, Oregon School District #549C (Medford) | ||||||
570,000 | 4.000%, 12/15/34 Series 2021 | Aa3/NR/NR | 576,874 | |||
Lane County, Oregon School District #4J (Eugene) Refunding | ||||||
3,300,000 | 5.000%, 06/15/33 | Aa1/NR/NR | 3,652,704 | |||
1,105,000 | 4.000%, 06/15/35 | Aa1/NR/NR | 1,107,232 | |||
Lane County, Oregon School District #19 (Springfield) | ||||||
1,000,000 | 5.000%, 06/15/25 | Aa1/AA+/NR | 1,019,940 | |||
Lane & Douglas Counties, Oregon School District #45J3 | ||||||
2,665,000 | 4.000%, 06/15/27 Series B | Aa1/NR/NR | 2,686,400 | |||
Lincoln County, Oregon School District | ||||||
2,370,000 | 4.000%, 06/15/24 Series A | Aa1/NR/NR | 2,370,095 | |||
Linn & Marion Counties, Oregon School District #129J (Santiam Canyon) | ||||||
750,000 | 5.000%, 06/15/34 | NR/AA+/NR | 802,312 | |||
1,000,000 | 5.000%, 06/15/39 Series 2019 | NR/AA+/NR | 1,042,390 | |||
Marion & Linn Counties, Oregon School District #29J (North Santiam) | ||||||
1,160,000 | 5.000%, 06/15/32 Series 2023 | NR/AA+/NR | 1,255,538 | |||
35 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
School District (continued) | ||||||
Marion & Polk Counties, Oregon School District #24J (Salem-Keizer) | ||||||
$ 5,000,000 | 5.000%, 06/15/30 | Aa1/AA+/NR | $ 5,284,350 | |||
5,525,000 | 5.000%, 06/15/31 | Aa1/AA+/NR | 5,837,881 | |||
1,135,000 | 5.000%, 06/15/32 Series 2020B | Aa1/AA+/NR | 1,231,282 | |||
4,600,000 | 5.000%, 06/15/33 Series 2020B | Aa1/AA+/NR | 4,974,440 | |||
1,000,000 | 5.000%, 06/15/34 Series 2020B | Aa1/AA+/NR | 1,079,970 | |||
2,000,000 | 5.000%, 06/15/35 Series 2020B | Aa1/AA+/NR | 2,149,000 | |||
Multnomah County, Oregon School District #1J (Portland) | ||||||
2,970,000 | 5.000%, 06/15/26 Series B | Aa1/AA+/NR | 3,027,945 | |||
3,000,000 | 5.000%, 06/15/37 Series 2023 | Aa1/AA+/NR | 3,252,390 | |||
Multnomah County, Oregon School District #7 (Reynolds) | ||||||
5,680,000 | 5.000%, 06/15/26 Series A | Aa1/NR/NR | 5,790,817 | |||
1,500,000 | 5.000%, 06/15/27 Series A | Aa1/NR/NR | 1,529,265 | |||
1,825,000 | 5.000%, 06/15/28 Series A | Aa1/NR/NR | 1,860,606 | |||
Multnomah and Clackamas Counties, Oregon School District #10 (Gresham-Barlow) | ||||||
1,535,000 | 5.000%, 06/15/29 | Aa1/NR/NR | 1,651,230 | |||
2,500,000 | 5.000%, 06/15/29 Series B | Aa1/AA+/NR | 2,611,250 | |||
Polk, Marion & Benton Counties, Oregon School District #13J (Central) | ||||||
1,515,000 | 4.000%, 02/01/28 | NR/AA+/NR | 1,517,545 | |||
Tillamook & Yamhill Counties, Oregon School District #101 (Nestucca Valley) | ||||||
1,275,000 | 5.000%, 06/15/31 | NR/AA+/NR | 1,352,291 | |||
Umatilla County, Oregon School District #6R (Umatilla) | ||||||
1,260,000 | 5.000%, 06/15/36 Series 2023A | NR/AA+/NR | 1,375,366 | |||
750,000 | 5.000%, 06/15/38 Series 2023A | NR/AA+/NR | 802,763 | |||
Washington County, Oregon School District #15 (Forest Grove) | ||||||
625,000 | 5.000%, 06/15/37 Series 2023 | NR/AA+/NR | 674,969 | |||
Washington County, Oregon School District #48J (Beaverton) | ||||||
1,500,000 | 5.000%, 06/15/27 Series C | Aa1/AA+/NR | 1,574,385 | |||
36 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
School District (continued) | ||||||
Washington & Clackamas Counties, Oregon School District #23J (Tigard) | ||||||
$ 2,405,000 | 5.000%, 06/15/30 | Aa1/AA+/NR | $ 2,512,864 | |||
1,000,000 | 5.000%, 06/15/31 Series A | Aa1/AA+/NR | 1,072,810 | |||
1,000,000 | 5.000%, 06/15/32 Series A | Aa1/AA+/NR | 1,072,870 | |||
Washington, Clackamas & Yamhill Counties, Oregon School District #88J | ||||||
2,785,000 | 5.000%, 06/15/29 Series B | Aa1/AA+/NR | 2,902,081 | |||
2,000,000 | 5.000%, 06/15/29 Series B | Aa1/AA+/NR | 2,116,840 | |||
Washington, Multnomah & Yamhill Counties, Oregon School District #1J (Hillsboro) | ||||||
3,105,000 | 5.000%, 06/15/30 | Aa1/NR/NR | 3,240,968 | |||
3,010,000 | 5.000%, 06/15/31 | Aa1/NR/NR | 3,138,647 | |||
2,000,000 | 5.000%, 06/15/34 Series 2017 | Aa1/NR/NR | 2,081,260 | |||
Yamhill County, Oregon School District #8 (Dayton) | ||||||
1,045,000 | 5.000%, 06/15/32 | NR/AA+/NR | 1,115,590 | |||
1,080,000 | 5.000%, 06/15/33 | NR/AA+/NR | 1,152,652 | |||
900,000 | 5.000%, 06/15/34 | NR/AA+/NR | 959,913 | |||
Yamhill County, Oregon School District #40 (McMinnville) | ||||||
1,000,000 | 4.000%, 06/15/29 | Aa1/AA+/NR | 1,001,630 | |||
1,000,000 | 4.000%, 06/15/30 | Aa1/AA+/NR | 998,270 | |||
Total School District | 149,268,987 | |||||
Special District (5.7%) | ||||||
Bend, Oregon Metropolitan Park & Recreational District | ||||||
1,430,000 | 4.000%, 06/01/27 | Aa2/NR/NR | 1,430,200 | |||
Clackamas County, Oregon Fire District No. 1 | ||||||
1,020,000 | 4.000%, 06/01/30 | NR/AA/NR | 1,028,854 | |||
2,705,000 | 4.000%, 06/01/31 | NR/AA/NR | 2,725,179 | |||
Corbett Fire District No. 14, Multnomah County, Oregon | ||||||
400,000 | 5.000%, 06/15/39 Series 2023 AGMC Insured | NR/AA/NR | 408,772 | |||
37 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Special District (continued) | ||||||
Lebanon, Oregon Fire Protection District, Linn County | ||||||
$ 560,000 | 5.000%, 06/15/40 Series 2023 BAMAC Insured | NR/AA/NR | $ 569,766 | |||
Metro, Oregon | ||||||
1,305,000 | 4.000%, 06/01/26 Series 2012 A | Aaa/AAA/NR | 1,305,000 | |||
2,390,000 | 4.000%, 06/01/33 Series 2020 A | Aaa/AAA/NR | 2,423,962 | |||
1,400,000 | 4.000%, 06/01/34 Series 2020 A | Aaa/AAA/NR | 1,419,460 | |||
Pacific Communities Health District, Oregon | ||||||
1,220,000 | 5.000%, 06/01/29 | A1/NR/NR | 1,244,876 | |||
2,060,000 | 5.000%, 06/01/30 | A1/NR/NR | 2,100,438 | |||
1,000,000 | 5.000%, 06/01/31 | A1/NR/NR | 1,017,360 | |||
1,200,000 | 5.000%, 06/01/32 | A1/NR/NR | 1,220,532 | |||
Redmond Area Park & Recreational District, Oregon | ||||||
550,000 | 5.000%, 06/15/38 Series 2023 | NR/AA-/NR | 586,421 | |||
Tualatin Hills, Oregon Park & Recreational District | ||||||
4,725,000 | 5.000%, 06/01/24 | Aa1/NR/NR | 4,757,319 | |||
2,775,000 | 5.000%, 06/01/26 | Aa1/NR/NR | 2,827,919 | |||
Total Special District | 25,066,058 | |||||
State (7.9%) | ||||||
State of Oregon | ||||||
750,000 | 5.000%, 05/01/25 Series A | Aa1/AA+/AA+ | 755,227 | |||
2,000,000 | 5.000%, 05/01/33 Series 2022A | Aa1/AA+/AA+ | 2,200,620 | |||
State of Oregon Article XI-G Higher Education | ||||||
500,000 | 5.000%, 08/01/25 Series O | Aa1/AA+/AA+ | 510,960 | |||
State of Oregon Article XI-M Seismic Projects | ||||||
1,000,000 | 5.000%, 06/01/30 | Aa1/AA+/AA+ | 1,026,720 | |||
State of Oregon Article XI-M and XI-N Seismic Projects | ||||||
900,000 | 5.000%, 06/01/39 Series 2020E | Aa1/AA+/AA+ | 945,477 | |||
38 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
State (continued) | ||||||
State of Oregon Article XI-M, XI-N and XI-P State Grant Programs | ||||||
$ 1,000,000 | 5.000%, 06/01/37 Series 2023D | Aa1/AA+/AA+ | $ 1,080,170 | |||
State of Oregon Article XI-Q State Projects | ||||||
1,000,000 | 5.000%, 11/01/30 | Aa1/AA+/AA+ | 1,026,090 | |||
2,000,000 | 5.000%, 11/01/31 | Aa1/AA+/AA+ | 2,052,180 | |||
1,800,000 | 5.000%, 05/01/25 Series A | Aa1/AA+/AA+ | 1,833,714 | |||
4,000,000 | 5.000%, 05/01/32 Series A | Aa1/AA+/AA+ | 4,273,960 | |||
1,255,000 | 5.000%, 05/01/29 Series D | Aa1/AA+/AA+ | 1,291,157 | |||
1,000,000 | 5.000%, 05/01/30 Series D | Aa1/AA+/AA+ | 1,026,090 | |||
2,300,000 | 5.000%, 05/01/28 Series F | Aa1/AA+/AA+ | 2,341,699 | |||
State of Oregon Higher Education | ||||||
1,000,000 | 5.000%, 08/01/28 Series A | Aa1/AA+/AA+ | 1,020,990 | |||
1,390,000 | 5.000%, 08/01/31 Series G | Aa1/AA+/AA+ | 1,489,357 | |||
1,920,000 | 5.000%, 08/01/32 Series G | Aa1/AA+/AA+ | 2,057,242 | |||
3,000,000 | 5.000%, 08/01/33 Series G | Aa1/AA+/AA+ | 3,213,720 | |||
1,900,000 | 5.000%, 08/01/34 Series G | Aa1/AA+/AA+ | 2,032,601 | |||
1,250,000 | 5.000%, 08/01/30 Series L | Aa1/AA+/AA+ | 1,309,825 | |||
1,300,000 | 5.000%, 08/01/32 Series L | Aa1/AA+/AA+ | 1,359,852 | |||
State of Oregon Veteran's Welfare | ||||||
450,000 | 1.950%, 06/01/31 Series 2020 I | Aa1/AA+/AA+ | 374,279 | |||
2,000,000 | 2.150%, 12/01/34 Series 2020 I | Aa1/AA+/AA+ | 1,575,760 | |||
Total State | 34,797,690 | |||||
Transportation (0.3%) | ||||||
State of Oregon ODOT Projects | ||||||
1,020,000 | 5.000%, 11/15/30 Series M | Aa1/AA+/AA+ | 1,066,594 | |||
Total General Obligation Bonds | 270,269,171 | |||||
Revenue Bonds (28.8%) | ||||||
City & County (0.1%) | ||||||
Beaverton, Oregon Special Revenue Bonds | ||||||
200,000 | 5.000%, 06/01/32 Series 2020A | Aa3/NR/NR | 216,152 | |||
400,000 | 5.000%, 06/01/34 Series 2020A | Aa3/NR/NR | 432,360 | |||
Total City & County | 648,512 | |||||
39 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Development (0.7%) | ||||||
Oregon State Business Development Commission Recovery Zone Facility (Intel Corp. Project) | ||||||
$ 3,000,000 | 3.800%, 12/01/40 | A2/A/NR | $ 2,939,070 | |||
Education (0.3%) | ||||||
Northwest Regional Education Service District, Oregon Full Faith and Credit Obligations | ||||||
500,000 | 5.000%, 06/01/34 Series 2023 | A1/NR/NR | 529,640 | |||
600,000 | 5.000%, 06/01/37 Series 2023 | A1/NR/NR | 622,086 | |||
Total Education | 1,151,726 | |||||
Electric (2.9%) | ||||||
Eugene, Oregon Electric Utility Refunding System | ||||||
2,875,000 | 5.000%, 08/01/29 Series A | Aa2/AA-/AA- | 2,969,472 | |||
4,030,000 | 5.000%, 08/01/30 Series A | Aa2/AA-/AA- | 4,152,593 | |||
Warm Springs Reservation, Oregon Confederated Tribes, Hydroelectric Revenue, Tribal Economic Development, Pelton Round Butte Project (Green Bonds) | ||||||
1,000,000 | 5.000%, 11/01/32 Series 2019B 144A | A3/NR/NR | 1,053,520 | |||
1,000,000 | 5.000%, 11/01/33 Series 2019B 144A | A3/NR/NR | 1,054,260 | |||
1,000,000 | 5.000%, 11/01/34 Series 2019B 144A | A3/NR/NR | 1,058,010 | |||
500,000 | 5.000%, 11/01/36 Series 2019B 144A | A3/NR/NR | 522,675 | |||
1,900,000 | 5.000%, 11/01/39 Series 2019B 144A | A3/NR/NR | 1,956,183 | |||
Total Electric | 12,766,713 | |||||
Healthcare (2.9%) | ||||||
Oregon Health Sciences University | ||||||
500,000 | 5.000%, 07/01/30 Series A | Aa3/AA-/AA- | 533,580 | |||
250,000 | 5.000%, 07/01/31 Series A | Aa3/AA-/AA- | 266,290 | |||
1,250,000 | 5.000%, 07/01/28 Series B | Aa3/AA-/AA- | 1,281,900 | |||
1,000,000 | 5.000%, 07/01/33 Series B | Aa3/AA-/AA- | 1,027,620 | |||
40 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Healthcare (continued) | ||||||
Oregon Health Sciences University (continued) | ||||||
$ 5,500,000 | 5.000%, 07/01/46 Series 2021B-2 (Mandatory Put Date 02/01/32) | Aa3/AA-/AA- | $ 5,794,635 | |||
Oregon State Facilities Authority (Legacy Health Project) | ||||||
2,255,000 | 5.000%, 06/01/30 Series 2022B | A1/A+/NR | 2,365,969 | |||
Union County, Oregon Hospital Facility Authority (Grande Ronde Hospital Project) | ||||||
135,000 | 5.000%, 07/01/28 Series 2022 | NR/BBB/BBB- | 136,878 | |||
175,000 | 5.000%, 07/01/29 Series 2022 | NR/BBB/BBB- | 177,326 | |||
200,000 | 5.000%, 07/01/30 Series 2022 | NR/BBB/BBB- | 202,770 | |||
325,000 | 5.000%, 07/01/31 Series 2022 | NR/BBB/BBB- | 328,539 | |||
500,000 | 5.000%, 07/01/32 Series 2022 | NR/BBB/BBB- | 505,955 | |||
Total Healthcare | 12,621,462 | |||||
Housing (0.3%) | ||||||
Clackamas County, Oregon Housing Authority Multifamily Housing Revenue (Easton Ridge Apartments Project) | ||||||
1,310,000 | 4.000%, 09/01/27 Series A | Aa2/NR/NR | 1,306,188 | |||
Lottery (4.6%) | ||||||
Oregon State Department of Administration Services (Lottery Revenue) | ||||||
2,000,000 | 5.000%, 04/01/32 Series A | Aa2/AAA/NR | 2,136,400 | |||
1,000,000 | 5.000%, 04/01/33 Series A | Aa2/AAA/NR | 1,067,320 | |||
1,500,000 | 5.000%, 04/01/35 Series A | Aa2/AAA/NR | 1,647,060 | |||
1,000,000 | 5.000%, 04/01/25 Series B | Aa2/AAA/NR | 1,005,870 | |||
4,000,000 | 5.000%, 04/01/30 Series C | Aa2/AAA/NR | 4,172,720 | |||
5,000,000 | 5.000%, 04/01/26 Series D | Aa2/AAA/NR | 5,087,050 | |||
4,000,000 | 5.000%, 04/01/28 Series D | Aa2/AAA/NR | 4,069,640 | |||
1,000,000 | 5.000%, 04/01/29 Series D | Aa2/AAA/NR | 1,017,270 | |||
Total Lottery | 20,203,330 | |||||
41 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Sales Tax (0.2%) | ||||||
Metro, Oregon Dedicated Tax Revenue (Oregon Convention Center Hotel) | ||||||
$ 750,000 | 5.000%, 06/15/31 | Aa3/NR/NR | $ 775,762 | |||
Transportation (5.0%) | ||||||
Oregon State Department Transportation Highway Usertax (Senior Lien) | ||||||
5,000,000 | 5.000%, 11/15/29 Series B | Aa1/AAA/AA+ | 5,249,200 | |||
Oregon State Department Transportation Highway Usertax (Subordinate Lien) | ||||||
900,000 | 5.000%, 11/15/37 Series 2020A | Aa2/AA+/AA+ | 952,434 | |||
2,385,000 | 5.000%, 11/15/39 Series 2023A | Aa2/AA+/AA+ | 2,542,529 | |||
Port Portland, Oregon Airport Revenue Refunding, Portland International Airport Series Twenty Three | ||||||
2,525,000 | 5.000%, 07/01/26 | NR/AA-/NR | 2,572,495 | |||
1,000,000 | 5.000%, 07/01/28 | NR/AA-/NR | 1,018,690 | |||
2,390,000 | 5.000%, 07/01/29 | NR/AA-/NR | 2,431,299 | |||
Tri-County Metropolitan Transportation District, Oregon Capital Grant Receipt | ||||||
1,100,000 | 5.000%, 10/01/27 Series A | A3/A/NR | 1,151,788 | |||
2,000,000 | 5.000%, 10/01/30 Series A | A3/A/NR | 2,089,300 | |||
3,000,000 | 5.000%, 10/01/31 Series 2018A | A3/A/NR | 3,127,380 | |||
Tri-County Metropolitan Transportation District, Oregon (Senior Lien Payroll Tax) | ||||||
1,000,000 | 5.000%, 09/01/25 Series A | Aaa/AAA/NR | 1,023,760 | |||
Total Transportation | 22,158,875 | |||||
Water and Sewer (11.8%) | ||||||
Beaverton, Oregon Water Revenue | ||||||
1,000,000 | 5.000%, 04/01/32 Series 2020 | NR/AA+/NR | 1,082,230 | |||
Clackamas County, Oregon Service District No. 1 | ||||||
2,240,000 | 5.000%, 12/01/26 | NR/AAA/NR | 2,334,640 | |||
Clean Water Services, Oregon Refunding (Senior Lien) | ||||||
750,000 | 5.000%, 10/01/27 | Aa1/AAA/NR | 792,727 | |||
42 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Water and Sewer (continued) | ||||||
Eugene, Oregon Water Utility System | ||||||
$ 115,000 | 5.000%, 08/01/28 | Aa2/AA/AA+ | $ 118,997 | |||
450,000 | 5.000%, 08/01/29 | Aa2/AA/AA+ | 465,151 | |||
Grants Pass, Oregon | ||||||
345,000 | 4.000%, 12/01/23 | NR/AA/NR | 345,010 | |||
Hillsboro, Oregon Water System | ||||||
1,000,000 | 5.000%, 06/01/31 | Aa2/NR/NR | 1,074,510 | |||
1,710,000 | 5.000%, 06/01/32 | Aa2/NR/NR | 1,833,924 | |||
Portland, Oregon Sewer System (First Lien) | ||||||
3,500,000 | 5.000%, 06/01/28 Series A | Aa1/AA+/NR | 3,565,030 | |||
Portland, Oregon Sewer System (Second Lien) | ||||||
5,405,000 | 4.500%, 05/01/31 Series A | Aa2/AA/NR | 5,482,832 | |||
6,355,000 | 5.000%, 03/01/32 Series A | Aa2/AA/NR | 6,804,362 | |||
2,000,000 | 5.000%, 10/01/25 Series B | Aa2/AA/NR | 2,021,680 | |||
2,000,000 | 5.000%, 06/01/26 Series B | Aa2/AA/NR | 2,038,140 | |||
2,000,000 | 5.000%, 06/01/27 Series B | Aa2/AA/NR | 2,038,140 | |||
5,000,000 | 4.000%, 03/01/34 Series 2020A | Aa2/AA/NR | 5,044,650 | |||
Portland, Oregon Water System (First Lien) | ||||||
3,230,000 | 5.000%, 05/01/27 Series A | Aa1/NR/NR | 3,249,994 | |||
1,000,000 | 4.000%, 04/01/35 Series 2022A | Aa1/AA+/NR | 1,008,350 | |||
Portland, Oregon Water System (Second Lien) | ||||||
2,590,000 | 5.000%, 05/01/31 Series A | Aa2/NR/NR | 2,788,601 | |||
2,000,000 | 5.000%, 05/01/32 Series A | Aa2/NR/NR | 2,154,760 | |||
2,000,000 | 5.000%, 05/01/33 Series A | Aa2/NR/NR | 2,152,900 | |||
2,230,000 | 5.000%, 05/01/35 Series 2019A | Aa2/NR/NR | 2,382,644 | |||
Portland, Oregon Water System Revenue Refunding (Junior Lien) | ||||||
2,000,000 | 5.000%, 10/01/23 | Aa2/NR/NR | 2,000,000 | |||
Tualatin Valley, Oregon Water District | ||||||
1,000,000 | 5.000%, 06/01/38 Series 2023 | NR/AA+/AA+ | 1,075,900 | |||
Total Water and Sewer | 51,855,172 | |||||
Total Revenue Bonds | 126,426,810 | |||||
43 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Pre-Refunded\Escrowed to Maturity Bonds (7.4%)†† | Ratings Moody’s, S&P and Fitch | Value | |||
Pre-Refunded General Obligation Bonds (3.0%) | ||||||
Higher Education (0.4%) | ||||||
Oregon State Higher Education | ||||||
$ 1,795,000 | 5.000%, 08/01/27 Series C | Aa1/AA+/AA+ | $ 1,813,309 | |||
School District (1.9%) | ||||||
Clackamas County, Oregon School District #62 (Oregon City) | ||||||
440,000 | 5.000%, 06/01/29 AGMC Insured | NR/AA/NR | 443,040 | |||
560,000 | 5.000%, 06/01/29 AGMC Insured | A1/AA/NR | 563,870 | |||
Lane County, Oregon School District #4J (Eugene) Refunding | ||||||
2,000,000 | 5.000%, 06/15/26 | Aa1/NR/NR | 2,015,980 | |||
Marion County, Oregon School District #103 (Woodburn) | ||||||
2,260,000 | 5.000%, 06/15/28 | Aa1/NR/NR | 2,307,189 | |||
Union County, Oregon School District #1 (La Grande) | ||||||
1,000,000 | 5.000%, 06/15/27 | Aa1/NR/NR | 1,021,880 | |||
Washington County, Oregon School District #48J (Beaverton) | ||||||
1,845,000 | 5.000%, 06/15/29 Series 2014B | Aa1/AA+/NR | 1,859,114 | |||
Total School District | 8,211,073 | |||||
State (0.7%) | ||||||
State of Oregon Article XI-G Community College Projects | ||||||
1,160,000 | 5.000%, 08/01/27 Series J | Aa1/AA+/AA+ | 1,187,492 | |||
State of Oregon Article XI-G Higher Education | ||||||
1,000,000 | 5.000%, 08/01/26 Series O | Aa1/AA+/AA+ | 1,020,850 | |||
1,000,000 | 5.000%, 08/01/27 Series O | Aa1/AA+/AA+ | 1,020,850 | |||
Total State | 3,229,192 | |||||
Total Pre-Refunded General Obligation Bonds | 13,253,574 | |||||
44 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Pre-Refunded\Escrowed to Maturity Revenue Bonds (4.4%) | Ratings Moody’s, S&P and Fitch | Value | |||
Higher Education (0.6%) | ||||||
Oregon State Facilities Authority (Linfield College Project) | ||||||
$ 1,000,000 | 5.000%, 10/01/23 Series A ETM | Baa3/NR/NR | $ 1,000,000 | |||
Oregon State Facilities Authority (Reed College Project) | ||||||
500,000 | 5.000%, 07/01/30 Series A | Aa2/NR/NR | 524,450 | |||
1,135,000 | 4.000%, 07/01/31 Series A | Aa2/NR/NR | 1,151,083 | |||
Total Higher Education | 2,675,533 | |||||
Transportation (3.8%) | ||||||
Oregon State Department Transportation Highway Usertax (Senior Lien) | ||||||
1,000,000 | 5.000%, 11/15/26 Series A | Aa1/AAA/AA+ | 1,001,200 | |||
1,040,000 | 5.000%, 11/15/26 Series A | Aa1/AAA/AA+ | 1,053,343 | |||
8,000,000 | 5.000%, 11/15/28 Series A | Aa1/AAA/AA+ | 8,098,240 | |||
Tri-County Metropolitan Transportation District, Oregon (Senior Lien Payroll Tax) | ||||||
3,975,000 | 5.000%, 09/01/30 Series A | Aaa/AAA/NR | 4,150,536 | |||
Tri-County Metropolitan Transportation District, Oregon (Senior Lien Payroll Tax) | ||||||
2,010,000 | 5.000%, 09/01/29 Series B | Aaa/AAA/NR | 2,055,888 | |||
Total Transportation | 16,359,207 | |||||
Total Pre-Refunded\Escrowed to Maturity Revenue Bonds | 19,034,740 | |||||
Total Pre-Refunded\Escrowed to Maturity Bonds | 32,288,314 | |||||
Total Municipal Bonds (cost $448,463,144) | 428,984,295 | |||||
Shares | Short-Term Investment (1.0%) | |||||
4,312,305 | Dreyfus Treasury Obligations Cash Management - Institutional Shares, 5.23%* (cost $4,312,305) | Aaa-mf/AAAm/NR | 4,312,305 | |||
Total Investments (cost $452,775,449 - note 4) | 98.7% | 433,296,600 | ||||
Other assets less liabilities | 1.3 | 5,807,960 | ||||
Net Assets | 100.0% | $ 439,104,560 |
45 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Portfolio Distribution By Quality Rating | Percentage of Investments† | |
Aaa of Moody's or AAA of S&P | 12.0% | |
Pre-refunded bonds\ETM bonds†† | 7.5 | |
Aa of Moody's or AA of S&P or Fitch | 72.9 | |
A of Moody's or S&P | 7.3 | |
BBB of S&P or Fitch | 0.3 | |
100.0% |
PORTFOLIO ABBREVIATIONS |
AGMC - Assured Guaranty Municipal Corp. BAMAC - Build America Mutual Assurance Co. ETM - Escrowed to Maturity NR - Not Rated ODOT - Oregon Department of Transportation |
* | The rate is an annualized seven-day yield at period end. |
† | Where applicable, calculated using the highest rating of the three NRSRO. Percentages in this table do not include the Short-Term Investment. |
†† | Pre-refunded bonds are bonds for which U.S. Government Obligations usually have been placed in escrow to retire the bonds at their earliest call date. Escrowed to Maturity bonds are bonds where money has been placed in the escrow account which is used to pay principal and interest through the bond’s originally scheduled maturity date. Escrowed to Maturity are shown as ETM. All other securities in the category are pre-refunded. |
Note: 144A – Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2023, these securities amounted to a value of $5,644,648 or 1.3% of net assets. |
See accompanying notes to financial statements.
46 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (25.8%) | Ratings Moody’s, S&P and Fitch | Value | |||
Barrington, Rhode Island | ||||||
$ 560,000 | 2.500%, 08/01/25 | Aa1/NR/NR | $ 536,642 | |||
Bristol, Rhode Island | ||||||
865,000 | 3.500%, 08/01/31 | NR/AA+/NR | 818,082 | |||
1,900,000 | 3.000%, 08/01/38 Series 2021A | NR/AA+/NR | 1,500,145 | |||
1,095,000 | 4.500%, 09/15/38 Series 2023A | NR/AA+/NR | 1,143,914 | |||
Coventry, Rhode Island | ||||||
1,605,000 | 3.625%, 03/15/27 AGMC Insured | A1/AA/NR | 1,583,509 | |||
Cranston, Rhode Island | ||||||
1,325,000 | 4.000%, 07/01/28 | A1/AA-/AA+ | 1,330,724 | |||
1,170,000 | 5.000%, 08/01/32 Series 2018 A | A1/AA-/AA+ | 1,235,181 | |||
1,000,000 | 4.000%, 08/01/33 Series 2019 A BAMI Insured | A1/AA/AA+ | 999,150 | |||
615,000 | 4.000%, 08/01/35 Series 2019 A BAMI Insured | A1/AA/AA+ | 611,415 | |||
860,000 | 4.000%, 08/15/34 Series 2021 A | NR/AA-/AA+ | 856,216 | |||
455,000 | 4.000%, 08/15/35 Series 2021 A | NR/AA-/AA+ | 450,473 | |||
475,000 | 4.000%, 08/15/36 Series 2021 A | NR/AA-/AA+ | 466,042 | |||
1,000,000 | 4.250%, 07/15/24 Series B BAMI Insured | A1/AA/AA+ | 1,003,480 | |||
1,000,000 | 4.250%, 07/15/25 Series B BAMI Insured | A1/AA/AA+ | 1,009,390 | |||
Cumberland, Rhode Island | ||||||
500,000 | 4.250%, 11/01/27 Series 2011 A | NR/AA+/NR | 500,175 | |||
500,000 | 4.625%, 11/01/31 Series 2011 A | NR/AA+/NR | 500,250 | |||
700,000 | 4.500%, 03/15/32 Series 2018 A | NR/AA+/NR | 726,019 | |||
Hopkinton, Rhode Island | ||||||
400,000 | 4.375%, 08/15/31 | Aa3/NR/NR | 400,036 | |||
Jamestown, Rhode Island | ||||||
1,000,000 | 4.500%, 02/15/39 Series 2023A | Aa1/NR/NR | 1,036,390 | |||
Johnston, Rhode Island | ||||||
1,020,000 | 3.450%, 06/01/29 Series A | A1/AA/NR | 986,962 | |||
1,020,000 | 3.700%, 06/01/33 Series A | A1/AA/NR | 969,755 | |||
Lincoln, Rhode Island | ||||||
1,500,000 | 3.500%, 08/01/24 Series A | Aa2/NR/AAA | 1,491,135 | |||
2,225,000 | 3.500%, 08/01/25 Series A | Aa2/NR/AAA | 2,203,796 | |||
Middleton, Rhode Island | ||||||
435,000 | 4.000%, 02/01/31 Series 2021A | Aa1/NR/NR | 439,728 |
47 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Narragansett, Rhode Island | ||||||
$ 1,025,000 | 3.500%, 07/15/28 | Aa2/AA+/NR | $ 1,004,520 | |||
North Kingstown, Rhode Island | ||||||
190,000 | 3.000%, 04/15/24 Series A | Aa2/AA+/NR | 188,478 | |||
1,500,000 | 3.500%, 04/01/37 Series 2021 A | NR/AA+/NR | 1,311,495 | |||
North Smithfield, Rhode Island | ||||||
825,000 | 3.000%, 06/15/26 Series A | Aa2/NR/NR | 796,686 | |||
1,075,000 | 3.500%, 05/15/34 | Aa2/NR/NR | 997,664 | |||
Pawtucket, Rhode Island | ||||||
770,000 | 4.000%, 11/01/25 AGMC Insured | A1/AA/A+ | 771,833 | |||
890,000 | 4.500%, 07/15/33 Series C AGMC Insured | A1/AA/NR | 922,076 | |||
935,000 | 4.500%, 07/15/34 Series C AGMC Insured | A1/AA/NR | 971,876 | |||
975,000 | 4.500%, 07/15/35 Series C AGMC Insured | A1/AA/NR | 1,007,136 | |||
Portsmouth, Rhode Island | ||||||
1,140,000 | 3.750%, 02/01/31 Series A | Aa2/AAA/NR | 1,111,044 | |||
Providence, Rhode Island | ||||||
975,000 | 3.625%, 01/15/29 Series A AGMC Insured | A1/AA/A | 966,537 | |||
2,010,000 | 3.750%, 01/15/30 Series A AGMC Insured | A1/AA/A | 1,994,925 | |||
1,000,000 | 3.750%, 01/15/32 Series A AGMC Insured | A1/AA/A | 990,150 | |||
Richmond, Rhode Island | ||||||
265,000 | 3.000%, 08/01/24 | Aa3/NR/NR | 262,559 | |||
State of Rhode Island | ||||||
2,000,000 | 3.000%, 05/01/31 Series A | Aa2/AA/AA | 1,825,080 | |||
2,500,000 | 4.000%, 04/01/32 Series A | Aa2/AA/AA | 2,483,950 | |||
2,000,000 | 3.000%, 05/01/32 Series A | Aa2/AA/AA | 1,801,880 | |||
1,500,000 | 3.000%, 05/01/36 Series A | Aa2/AA/AA | 1,257,090 | |||
1,000,000 | 4.000%, 08/01/33 Series 2021E | Aa2/AA/AA | 999,280 | |||
Warren, Rhode Island | ||||||
1,170,000 | 4.000%, 02/15/33 Series 2018 A | Aa3/NR/NR | 1,160,979 | |||
West Greenwich, Rhode Island | ||||||
1,175,000 | 3.000%, 08/15/26 | NR/AA+/NR | 1,128,811 |
48 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
West Warwick, Rhode Island | ||||||
$ 795,000 | 5.000%, 10/01/32 Series A BAMI Insured | A3/AA/NR | $ 809,588 | |||
Westerly, Rhode Island | ||||||
345,000 | 5.000%, 11/15/31 Series 2021 A | NR/AA/NR | 376,957 | |||
Total General Obligation Bonds | 47,939,203 | |||||
Revenue Bonds (71.2%) | ||||||
Development (6.5%) | ||||||
Providence, Rhode Island Public Building Authority (Capital Improvement Program Projects) | ||||||
3,000,000 | 4.000%, 09/15/34 Series A AGMC Insured | A1/AA/NR | 2,931,420 | |||
3,500,000 | 4.000%, 09/15/35 Series A AGMC Insured | A1/AA/NR | 3,370,570 | |||
Providence, Rhode Island Redevelopment Agency Refunding Public Safety Building Project | ||||||
1,680,000 | 5.000%, 04/01/26 Series A AGMC Insured | A1/AA/NR | 1,706,443 | |||
Rhode Island Infrastructure Bank Municipal Road and Bridge Revolving Fund | ||||||
935,000 | 4.000%, 10/01/33 Series 2019 A | NR/AA/NR | 936,515 | |||
845,000 | 4.000%, 10/01/34 Series 2019 A | NR/AA/NR | 845,549 | |||
1,010,000 | 4.000%, 10/01/35 Series 2019 A | NR/AA/NR | 996,769 | |||
Rhode Island Infrastructure Bank Efficient Buildings Fund, Green Bonds | ||||||
1,555,000 | 3.000%, 10/01/37 Series 2020 A | NR/AA/NR | 1,242,989 | |||
Total Development | 12,030,255 | |||||
Healthcare (3.6%) | ||||||
Rhode Island Health & Education Building Corp., Hospital Financing, Lifespan Obligated Group | ||||||
875,000 | 5.000%, 05/15/28 Series 2016 | NR/BBB+/BBB+ | 877,389 | |||
1,000,000 | 5.000%, 05/15/31 Series 2016 | NR/BBB+/BBB+ | 1,000,710 | |||
1,000,000 | 5.000%, 05/15/33 Series 2016 | NR/BBB+/BBB+ | 997,490 | |||
1,250,000 | 5.000%, 05/15/34 Series 2016 | NR/BBB+/BBB+ | 1,241,463 | |||
1,750,000 | 5.000%, 05/15/39 Series 2016 | NR/BBB+/BBB+ | 1,659,525 | |||
49 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Healthcare (continued) | ||||||
Rhode Island State & Providence Plantations Lease COP (Eleanor Slater Hospital Project) | ||||||
$ 1,000,000 | 4.000%, 11/01/32 Series B | Aa3/AA-/AA- | $ 1,011,770 | |||
Total Healthcare | 6,788,347 | |||||
Higher Education (7.1%) | ||||||
Rhode Island Health and Education Building Corp., Higher Educational Facility | ||||||
2,500,000 | 5.000%, 09/15/30 Series 2010 A AGMC Insured | Aa3/NR/NR | 2,501,925 | |||
Rhode Island Health and Educational Building Corp., Higher Education Facility, Brown University | ||||||
2,765,000 | 4.000%, 09/01/37 Series 2017 | Aa1/AA+/NR | 2,685,644 | |||
500,000 | 5.000%, 09/01/39 Series 2023 | Aa1/AA+/NR | 535,525 | |||
Rhode Island Health and Educational Building Corp., Higher Education Facility, Providence College | ||||||
2,000,000 | 4.000%, 11/01/24 Series 2015 | A2/A/NR | 2,001,600 | |||
250,000 | 4.000%, 11/01/37 Series 2021B | A2/A/NR | 233,335 | |||
250,000 | 4.000%, 11/01/38 Series 2021B | A2/A/NR | 232,535 | |||
Rhode Island Health and Educational Building Corp., Higher Education Facility, University of Rhode Island | ||||||
1,000,000 | 4.250%, 09/15/31 Series A | Aa3/A+/NR | 1,012,020 | |||
785,000 | 5.000%, 09/15/34 Series 2023 | Aa3/A+/NR | 840,868 | |||
Rhode Island Health and Educational Building Corp., Higher Education Facility, University of Rhode Island Auxiliary Enterprise | ||||||
500,000 | 4.000%, 09/15/31 Series 2016 B | A1/A+/NR | 491,735 | |||
2,000,000 | 4.000%, 09/15/42 Series 2017 A | A1/A+/NR | 1,714,780 | |||
1,000,000 | 4.000%, 09/15/32 Series 2017 B | A1/A+/NR | 976,550 | |||
Total Higher Education | 13,226,517 | |||||
50 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Housing (6.6%) | ||||||
Rhode Island Housing & Mortgage Finance Corp. Homeownership Opportunity | ||||||
$ 155,000 | 3.000%, 10/01/39 Series 71 | Aa1/AA+/NR | $ 122,171 | |||
2,000,000 | 2.100%, 10/01/35 Series 73 A | Aa1/AA+/NR | 1,525,860 | |||
2,000,000 | 2.300%, 10/01/40 Series 73 A | Aa1/AA+/NR | 1,364,540 | |||
2,000,000 | 2.050%, 10/01/36 Series 75 A | Aa1/AA+/NR | 1,441,180 | |||
750,000 | 2.350%, 10/01/36 Series 76 A | Aa1/AA+/NR | 552,855 | |||
1,500,000 | 4.400%, 10/01/38 Series 79 A | Aa1/AA+/NR | 1,454,670 | |||
1,150,000 | 4.150%, 10/01/38 Series 80 A | Aa1/AA+/NR | 1,071,581 | |||
Rhode Island Housing & Mortgage Finance Corp. Multi-Family Development Sustainability | ||||||
770,000 | 2.750%, 10/01/34 Series 1-B | Aa2/NR/NR | 623,939 | |||
1,000,000 | 3.100%, 10/01/44 Series 1-B | Aa2/NR/NR | 703,910 | |||
Rhode Island Housing & Mortgage Finance Corp. Multi-Family Housing | ||||||
175,000 | 4.625%, 10/01/25 Series 2010 A | Aaa/NR/NR | 175,051 | |||
215,000 | 5.000%, 10/01/30 Series 2010 A | Aaa/NR/NR | 215,353 | |||
1,255,000 | 3.450%, 10/01/36 Series 2016 1B | Aa2/NR/NR | 1,093,733 | |||
1,000,000 | 3.250%, 10/01/27 Series 1B | Aa2/NR/NR | 962,880 | |||
1,000,000 | 3.400%, 10/01/29 Series 3B | Aa2/NR/NR | 958,300 | |||
Total Housing | 12,266,023 | |||||
Public School (31.7%) | ||||||
Rhode Island Health and Education Building Corp., State Appropriation-Backed Revenue Bonds, Central Falls Public School Projects | ||||||
1,115,000 | 5.000%, 05/15/40 Series 2023 | Aa3/AA-/NR | 1,156,980 | |||
Rhode Island Health and Education Building Corp., Public Schools Financing Program | ||||||
795,000 | 5.000%, 05/15/27 Series 2015 C | Aa2/NR/NR | 808,507 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Burrillville | ||||||
730,000 | 5.000%, 05/15/35 Series 2022D | NR/AA/NR | 776,691 | |||
51 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Public School (continued) | ||||||
Rhode Island Health and Education Building Corp., Public School Financing Program, Chariho Regional School District | ||||||
$ 1,520,000 | 4.000%, 05/15/31 Series 2017 J-2 B | Aa3/NR/NR | $ 1,522,113 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Coventry | ||||||
1,000,000 | 3.750%, 05/15/28 Series 2013 B AGMC Insured | Aa3/AA/NR | 998,490 | |||
1,000,000 | 4.000%, 05/15/33 AGMC Insured | Aa3/AA/NR | 985,630 | |||
Rhode Island Health and Educational Building Corp., Public School Financing Program, City of Cranston | ||||||
1,170,000 | 4.000%, 05/15/30 Series 2015 B BAMI Insured | NR/AA/NR | 1,170,620 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Cumberland | ||||||
800,000 | 5.000%, 05/15/39 Series 2023A | NR/AA+/NR | 839,888 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, City of East Providence | ||||||
1,000,000 | 3.625%, 05/15/32 Series B | Aa3/NR/NR | 980,000 | |||
2,000,000 | 4.000%, 05/15/37 Series 2021F | NR/AA/NR | 1,901,140 | |||
2,000,000 | 4.000%, 05/15/38 Series 2021F | NR/AA/NR | 1,872,240 | |||
Rhode Island Health and Education Building Corp., Exeter-West Greenwich Regional School District | ||||||
1,455,000 | 3.500%, 05/15/37 Series 2021 G | Aa3/NR/NR | 1,248,317 | |||
1,500,000 | 4.000%, 05/15/41 Series 2021 G | Aa3/NR/NR | 1,343,760 | |||
1,150,000 | 4.500%, 05/15/39 Series 2023 B | Aa3/NR/NR | 1,163,558 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Jamestown | ||||||
1,020,000 | 3.000%, 05/15/35 Series 2019 C | Aa1/NR/NR | 893,877 | |||
52 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Public School (continued) | ||||||
Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Johnston | ||||||
$ 1,045,000 | 5.000%, 05/15/34 Series 2022F | NR/AA/NR | $ 1,117,868 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Lincoln | ||||||
3,245,000 | 5.000%, 05/15/33 Series 2020 B | Aa2/NR/AAA | 3,447,618 | |||
1,000,000 | 4.000%, 05/15/35 Series 2020 B | Aa2/NR/AAA | 994,420 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Little Compton | ||||||
1,100,000 | 4.000%, 05/15/25 Series 2013 H | NR/AAA/NR | 1,100,253 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, City of Newport | ||||||
2,000,000 | 4.000%, 05/15/36 Series 2022C | NR/AA+/NR | 1,993,400 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, Town of North Providence | ||||||
750,000 | 5.000%, 05/15/31 Series 2017 G AGMC Insured | Aa3/AA/NR | 775,635 | |||
500,000 | 5.000%, 05/15/32 Series 2019 A AGMC Insured | Aa3/AA/NR | 532,340 | |||
500,000 | 5.000%, 05/15/33 Series 2019 A AGMC Insured | Aa3/AA/NR | 531,920 | |||
500,000 | 5.000%, 05/15/34 Series 2019 A AGMC Insured | Aa3/AA/NR | 533,465 | |||
500,000 | 4.000%, 05/15/37 Series 2019 A AGMC Insured | Aa3/AA/NR | 473,245 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, City of Pawtucket | ||||||
1,200,000 | 4.000%, 05/15/26 Series 2014 C | Aa3/NR/NR | 1,198,932 | |||
1,000,000 | 4.250%, 05/15/29 Series 2017 E BAMI Insured | Aa3/AA/NR | 1,009,250 | |||
1,045,000 | 4.000%, 05/15/31 Series 2018 B | Aa3/NR/NR | 1,046,829 | |||
53 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Public School (continued) | ||||||
Rhode Island Health and Education Building Corp., Public School Financing Program, City of Pawtucket (continued) | ||||||
$ 1,090,000 | 4.000%, 05/15/32 Series 2018 B | Aa3/NR/NR | $ 1,086,403 | |||
1,000,000 | 4.000%, 05/15/35 Series 2022A | Aa3/NR/NR | 990,760 | |||
1,000,000 | 4.000%, 05/15/36 Series 2022A | Aa3/NR/NR | 974,480 | |||
1,000,000 | 4.000%, 05/15/38 Series 2022A | Aa3/NR/NR | 920,230 | |||
500,000 | 4.000%, 05/15/42 Series 2022A | Aa3/NR/NR | 444,320 | |||
2,350,000 | 3.000%, 05/15/39 Series 2019 B | Aa3/NR/NR | 1,790,653 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Portsmouth | ||||||
500,000 | 5.000%, 05/15/32 Series 2022E | NR/AAA/NR | 557,320 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, City of Providence | ||||||
1,000,000 | 4.000%, 05/15/37 Series 2021D BAMI Insured | Aa3/AA/NR | 950,570 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Scituate | ||||||
1,285,000 | 4.500%, 05/15/33 Series 2018 A | NR/AA/NR | 1,306,627 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Smithfield | ||||||
1,000,000 | 3.000%, 05/15/37 Series 2021H | NR/AA/NR | 804,840 | |||
1,000,000 | 3.000%, 05/15/38 Series 2021H | NR/AA/NR | 788,230 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Tiverton | ||||||
1,630,000 | 5.000%, 05/15/27 Series 2015 D | A1/NR/NR | 1,657,286 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, City of Warwick | ||||||
1,000,000 | 4.000%, 05/15/36 Series 2022B | NR/AA/NR | 978,300 | |||
54 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Public School (continued) | ||||||
Rhode Island Health and Education Building Corp., Public School Financing Program, Town of Westerly | ||||||
$ 500,000 | 4.000%, 05/15/30 Series 2021E | NR/AA/NR | $ 500,680 | |||
500,000 | 4.000%, 05/15/31 Series 2021E | NR/AA/NR | 498,085 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, Pooled Issue | ||||||
445,000 | 5.000%, 05/15/35 Series 2019 A AGMC Insured | Aa3/AA/NR | 472,826 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, Pooled Issue - Narragansett & Scituate | ||||||
1,000,000 | 4.250%, 05/15/28 Series 2017 B | Aa2/NR/NR | 1,014,600 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, Providence Public Buildings Authority | ||||||
1,000,000 | 3.750%, 05/15/27 Series 2015 A AGMC Insured | Aa3/AA/NR | 988,720 | |||
1,500,000 | 4.000%, 05/15/28 Series 2015 A AGMC Insured | Aa3/AA/NR | 1,502,055 | |||
1,500,000 | 4.000%, 05/15/30 Series 2015 B AGMC Insured | Aa3/AA/NR | 1,494,465 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, Providence Public Schools | ||||||
2,000,000 | 4.500%, 05/15/24 Series 2013 A | Aa3/NR/NR | 2,000,120 | |||
1,000,000 | 4.000%, 05/15/35 Series 2019 A AGMC Insured | Aa3/AA/NR | 986,220 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, City of Warwick | ||||||
1,000,000 | 4.000%, 05/15/32 Series 2017 I | NR/AA/NR | 993,820 | |||
500,000 | 4.000%, 05/15/35 Series 2019 D | NR/AA/NR | 491,300 | |||
55 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Public School (continued) | ||||||
Rhode Island Health and Education Building Corp., Public School Financing Program, City of Woonsocket | ||||||
$ 500,000 | 5.000%, 05/15/27 Series 2017 A AGMC Insured | Aa3/AA/NR | $ 516,375 | |||
500,000 | 5.000%, 05/15/28 Series 2017 A AGMC Insured | Aa3/AA/NR | 516,315 | |||
500,000 | 5.000%, 05/15/29 Series 2017 A AGMC Insured | Aa3/AA/NR | 515,760 | |||
Rhode Island Health and Education Building Corp., Public School Financing Program, Town of South Kingstown | ||||||
780,000 | 3.500%, 05/15/34 Series 2020A | Aa1/NR/NR | 741,975 | |||
Total Public School | 58,900,321 | |||||
Secondary Education (1.2%) | ||||||
Rhode Island Health and Educational Building Corp., Educational Institution, St. George's School | ||||||
600,000 | 4.000%, 10/01/36 Series 2021 | NR/AA-/NR | 562,896 | |||
600,000 | 4.000%, 10/01/37 Series 2021 | NR/AA-/NR | 554,304 | |||
1,265,000 | 4.000%, 10/01/38 Series 2021 | NR/AA-/NR | 1,151,605 | |||
Total Secondary Education | 2,268,805 | |||||
Transportation (8.3%) | ||||||
Rhode Island Commerce Corp., Airport | ||||||
635,000 | 5.000%, 07/01/36 2016 Series D | Baa1/A/BBB+ | 643,649 | |||
1,515,000 | 5.000%, 07/01/37 2016 Series D | Baa1/A/BBB+ | 1,530,256 | |||
Rhode Island Commerce Corp., First Lien Special Facility Refunding Bonds (Rhode Island Airport Corporation Intermodal Facility Project) | ||||||
1,425,000 | 5.000%, 07/01/24 Series 2018 | Baa1/A/NR | 1,435,631 | |||
1,500,000 | 5.000%, 07/01/30 Series 2018 | Baa1/A/NR | 1,554,555 | |||
56 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Transportation (continued) | ||||||
Rhode Island Commerce Corp., Grant Anticipation Refunding Bonds (Rhode Island Department of Transportation) | ||||||
$ 1,000,000 | 4.000%, 06/15/24 Series 2016 A | A2/AA-/NR | $ 999,360 | |||
1,000,000 | 5.000%, 06/15/31 Series 2016 B | A2/AA-/NR | 1,022,250 | |||
Rhode Island State Economic Development Corp., Airport | ||||||
1,000,000 | 5.000%, 07/01/24 Series B | Baa1/A/BBB+ | 1,000,630 | |||
2,000,000 | 4.000%, 07/01/24 Series B | Baa1/A/BBB+ | 1,998,960 | |||
Rhode Island State Turnpike & Bridge Authority, Motor Fuel Tax | ||||||
1,240,000 | 4.000%, 10/01/27 Series 2016 A | NR/A+/A- | 1,247,291 | |||
1,500,000 | 4.000%, 10/01/34 Series 2016 A | NR/A+/A- | 1,478,265 | |||
1,000,000 | 4.000%, 10/01/36 Series 2016 A | NR/A+/A- | 942,810 | |||
425,000 | 5.000%, 10/01/40 Series 2016 A | NR/A+/A- | 427,635 | |||
300,000 | 4.000%, 10/01/33 Series 2019 A | NR/A+/A- | 300,093 | |||
300,000 | 4.000%, 10/01/34 Series 2019 A | NR/A+/A- | 298,266 | |||
495,000 | 4.000%, 10/01/35 Series 2019 A | NR/A+/A- | 486,669 | |||
Total Transportation | 15,366,320 | |||||
Water and Sewer (5.1%) | ||||||
Narragansett, Rhode Island Bay Commission Wastewater System | ||||||
3,145,000 | 4.000%, 02/01/28 Series A | NR/AA-/NR | 3,151,919 | |||
Rhode Island Clean Water Protection Finance Agency Safe Drinking Water Revolving Fund | ||||||
1,085,000 | 3.500%, 10/01/25 | NR/AAA/AAA | 1,073,618 | |||
Rhode Island Infrastructure Bank Water, City of Pawtucket | ||||||
1,730,000 | 5.000%, 10/01/28 Series 2015 NPFG Insured | Baa2/A+/NR | 1,752,819 | |||
Rhode Island Infrastructure Bank Water, Pollution Control | ||||||
2,575,000 | 4.000%, 10/01/29 Series A | NR/AAA/AAA | 2,578,708 | |||
500,000 | 4.000%, 10/01/32 Series A | NR/AAA/AAA | 504,765 | |||
57 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Water and Sewer (continued) | ||||||
Rhode Island Infrastructure Bank Water, Safe Drinking Water | ||||||
$ 500,000 | 3.000%, 10/01/31 Series A | NR/AAA/AAA | $ 464,775 | |||
Total Water and Sewer | 9,526,604 | |||||
Other Revenue (1.1%) | ||||||
Providence, Rhode Island Public Building Authority (Capital Improvement Program Projects) | ||||||
2,000,000 | 5.000%, 09/15/31 Series A AGMC Insured | A1/AA/NR | 2,045,300 | |||
Total Revenue Bonds | 132,418,492 | |||||
Pre-Refunded Bonds (1.3%)†† | ||||||
Pre-Refunded General Obligation Bonds (0.8%) | ||||||
Rhode Island State & Providence Plantations Consolidated Capital Development Loan | ||||||
1,500,000 | 5.000%, 11/01/34 Series B | Aa2/AA/AA | 1,517,820 | |||
Pre-Refunded Revenue Bonds (0.5%) | ||||||
Higher Education (0.5%) | ||||||
Rhode Island Health and Educational Building Corp., Higher Education Facility, Bryant University | ||||||
1,000,000 | 5.000%, 06/01/32 Series 2014 | A2/NR/NR | 1,006,910 | |||
Total Pre-Refunded Revenue Bonds | 2,524,730 | |||||
Total Municipal Bonds (cost $199,919,014) | 182,882,425 | |||||
Shares | Short-Term Investment (0.6%) | |||||
1,069,873 | Dreyfus Treasury Obligations Cash Management - Institutional Shares, 5.23%* (cost $1,069,873) | Aaa-mf/AAAm/NR | 1,069,873 | |||
Total Investments (cost $200,988,887 - note 4) | 98.9% | 183,952,298 | ||||
Other assets less liabilities | 1.1 | 2,005,679 | ||||
Net Assets | 100.0% | $ 185,957,977 |
58 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Portfolio Distribution By Quality Rating | Percentage of Investments† | |
Aaa of Moody's or AAA of S&P or Fitch | 8.7% | |
Pre-refunded bonds†† | 1.4 | |
Aa of Moody's or AA of S&P or Fitch | 74.5 | |
A of Moody's or S&P or Fitch | 12.2 | |
Baa of Moody’s or BBB of S&P or Fitch | 3.2 | |
100.0% |
PORTFOLIO ABBREVIATIONS |
AGMC - Assured Guaranty Municipal Corp. BAMI - Build America Mutual Insurance COP - Certificates of Participation NPFG - National Public Finance Guarantee NR - Not Rated |
* | The rate is an annualized seven-day yield at period end. |
† | Where applicable, calculated using the highest rating of the three NRSRO. Percentages in this table do not include the Short-Term Investment. |
†† | Pre-refunded bonds are bonds for which U.S. Government Obligations usually have been placed in escrow to retire the bonds at their earliest call date. |
See accompanying notes to financial statements.
59 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (7.3%) | Ratings Moody’s, S&P and Fitch | Value | |||
City and County (3.1%) | ||||||
Clark County, Nevada, Refunding | ||||||
$ 1,000,000 | 4.000%, 06/01/37 Series 2019 | Aa1/AA+/NR | $ 950,520 | |||
200,000 | 3.000%, 06/01/38 Series 2019 | Aa1/AA+/NR | 156,728 | |||
Port Arthur, Texas Combination Tax & Revenue Certificates of Obligation | ||||||
1,000,000 | 5.000%, 02/15/24 Series 2023 BAMI Insured | NR/AA/NR | 1,002,840 | |||
1,000,000 | 5.000%, 02/15/41 Series 2023 BAMI Insured | NR/AA/NR | 1,009,510 | |||
Port of Olympia, Washington Limited Tax | ||||||
1,385,000 | 5.000%, 12/01/31 AMT Series B | Aa2/NR/NR | 1,438,724 | |||
Port of Vancouver, Washington Limited Tax | ||||||
555,000 | 5.000%, 12/01/33 AMT Series 2022A | Aa2/NR/NR | 575,940 | |||
Reno, Nevada Capital Improvement Refunding | ||||||
1,000,000 | 5.000%, 06/01/28 | A1/AA-/NR | 1,000,700 | |||
Richardson, Texas | ||||||
1,000,000 | 5.000%, 02/15/24 Series 2023 | Aaa/AAA/NR | 1,003,600 | |||
Washoe County, Nevada Limited Tax | ||||||
1,500,000 | 4.000%, 07/01/32 Series 2021 | Aa2/AA+/NR | 1,526,655 | |||
West University Place City, Texas Certificates of Obligation | ||||||
535,000 | 5.000%, 02/01/26 Series 2022 | NR/AAA/NR | 550,034 | |||
Total City and County | 9,215,251 | |||||
Healthcare (0.4%) | ||||||
King County, Washington Public Hospital District No. 001, Refunding, Valley Medical Center | ||||||
1,000,000 | 5.000%, 12/01/28 | A2/NR/NR | 1,052,550 | |||
Public Schools (3.1%) | ||||||
Bushland, Texas Independent School District Unlimited Tax | ||||||
900,000 | 5.000%, 02/15/29 Series 2022 PSF Guaranteed | NR/AAA/NR | 965,133 | |||
60 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | General Obligation Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Public Schools (continued) | ||||||
Clark County, Nevada School District Limited Tax | ||||||
$ 1,500,000 | 3.000%, 06/15/37 Series B AGMC Insured | A1/AA/NR | $ 1,202,355 | |||
1,645,000 | 5.000%, 06/15/28 Series D | A1/AA-/NR | 1,683,657 | |||
Lewis County, Washington School District No. 302 Chehalis (School Board Guaranty Program) | ||||||
1,000,000 | 5.000%, 12/01/34 | Aaa/NR/NR | 1,015,260 | |||
Lewis & Thurston Counties, Washington School District No. 401 Centalia (School Board Guaranty Program) | ||||||
730,000 | 5.000%, 12/01/35 | Aaa/NR/NR | 748,856 | |||
Logan City, Utah School District (School Board Guaranty Program) | ||||||
1,385,000 | 4.000%, 06/15/30 Series 2014 | Aaa/NR/NR | 1,354,946 | |||
Port Arthur, Texas Independent School District Unlimited Tax | ||||||
1,000,000 | 4.000%, 02/15/35 Series 2021 AGMC Insured | NR/AA/A+ | 986,050 | |||
Washoe County, Nevada School District Limited Tax Improvement | ||||||
1,000,000 | 4.000%, 10/01/34 Series 2020A | Aa3/AA/NR | 998,630 | |||
Weatherford, Texas Independent School District Unlimited Tax Refunding | ||||||
530,000 | zero coupon, 02/15/28 Series 2019 PSF Guaranteed | Aaa/NR/NR | 445,651 | |||
Total Public Schools | 9,400,538 | |||||
State (0.7%) | ||||||
Utah State | ||||||
1,000,000 | 5.000%, 07/01/28 | Aaa/AAA/AAA | 1,053,740 | |||
1,000,000 | 5.000%, 07/01/29 | Aaa/AAA/AAA | 1,052,300 | |||
Total State | 2,106,040 | |||||
Total General Obligation Bonds | 21,774,379 | |||||
61 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (86.4%) | Ratings Moody’s, S&P and Fitch | Value | |||
Airport (7.0%) | ||||||
Broward County, Florida Port Facilities | ||||||
$ 1,000,000 | 4.000%, 09/01/38 AMT Series B | A1/A/NR | $ 922,000 | |||
Clark County, Nevada Airport System Junior Subordinate Lien | ||||||
745,000 | 5.000%, 07/01/26 AMT Series 2021 B | A1/NR/A+ | 755,020 | |||
Hillsborough County, Florida Aviation Authority Airport, Tampa International Airport | ||||||
1,500,000 | 5.000%, 10/01/28 AMT Series 2022A | Aa3/NR/AA- | 1,555,995 | |||
Metropolitan Washington District of Columbia Airport Authority System, Revenue Refunding | ||||||
1,000,000 | 5.000%, 10/01/38 AMT Series 2019A | Aa3/AA-/AA- | 1,004,500 | |||
Miami-Dade County, Florida Aviation Revenue Refunding | ||||||
1,000,000 | 5.000%, 10/01/34 AMT Series 2014A | A1/A/A+ | 999,540 | |||
Miami-Dade County, Florida Seaport Revenue Refunding | ||||||
1,000,000 | 5.000%, 10/01/30 AMT Series 2022A | A3/NR/A | 1,038,410 | |||
Salt Lake City, Utah Airport Revenue, Salt Lake City International Airport | ||||||
1,000,000 | 5.000%, 07/01/26 AMT Series A | A2/A+/NR | 1,013,450 | |||
1,000,000 | 5.000%, 07/01/27 AMT Series A | A2/A+/NR | 1,021,100 | |||
1,000,000 | 5.000%, 07/01/28 AMT Series A | A2/A+/NR | 1,028,480 | |||
1,000,000 | 5.000%, 07/01/29 AMT Series A | A2/A+/NR | 1,026,600 | |||
1,000,000 | 5.000%, 07/01/29 AMT Series A | A2/A+/NR | 1,034,120 | |||
3,100,000 | 5.000%, 07/01/30 AMT Series A | A2/A+/NR | 3,160,543 | |||
1,470,000 | 5.000%, 07/01/47 AMT Series A | A2/A+/NR | 1,443,496 | |||
175,000 | 5.000%, 07/01/25 AMT Series 2023A | A2/A+/NR | 176,670 | |||
500,000 | 5.000%, 07/01/35 AMT Series 2023A | A2/A+/NR | 522,085 | |||
250,000 | 5.250%, 07/01/38 AMT Series 2023A | A2/A+/NR | 263,383 | |||
895,000 | 5.000%, 07/01/30 Series B | A2/A+/NR | 924,016 | |||
850,000 | 5.000%, 07/01/31 Series B | A2/A+/NR | 877,480 | |||
500,000 | 5.000%, 07/01/31 Series B | A2/A+/NR | 521,850 | |||
1,525,000 | 5.000%, 07/01/37 Series B | A2/A+/NR | 1,550,757 | |||
Total Airport | 20,839,495 | |||||
62 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Charter Schools (11.0%) | ||||||
Utah State Charter School Finance Authority Entheos Academy | ||||||
$ 1,375,000 | 4.000%, 10/15/30 Series 2020A | Aa2/NR/NR | $ 1,322,915 | |||
Utah State Charter School Finance Authority George Washington Academy | ||||||
1,500,000 | 5.000%, 04/15/35 Series 2015 | NR/AA/NR | 1,503,285 | |||
Utah State Charter School Finance Authority Good Foundations Academy | ||||||
235,000 | 4.750%, 11/15/24 Series A 144A | NR/NR/NR* | 233,176 | |||
1,655,000 | 5.550%, 11/15/34 Series A 144A | NR/NR/NR* | 1,649,456 | |||
3,280,000 | 5.850%, 11/15/44 Series A 144A | NR/NR/NR* | 3,145,586 | |||
Utah State Charter School Finance Authority Lakeview Academy | ||||||
1,300,000 | 5.000%, 10/15/35 Series 2015 | NR/AA/NR | 1,309,581 | |||
Utah State Charter School Finance Authority Legacy Preparatory Academy | ||||||
300,000 | 4.000%, 04/15/24 | NR/AA/NR | 299,265 | |||
1,710,000 | 5.000%, 04/15/29 | NR/AA/NR | 1,723,338 | |||
1,000,000 | 4.000%, 04/15/32 Series 2022 | NR/AA/NR | 959,400 | |||
1,000,000 | 4.000%, 04/15/37 Series 2022 | NR/AA/NR | 904,880 | |||
Utah State Charter School Finance Authority Monticello Academy | ||||||
1,000,000 | 5.000%, 04/15/37 Series 2014 | NR/AA/NR | 1,003,410 | |||
Utah State Charter School Finance Authority Ogden Preparatory Academy | ||||||
150,000 | 4.000%, 10/15/23 | NR/AA/NR | 149,973 | |||
260,000 | 4.000%, 10/15/24 | NR/AA/NR | 259,412 | |||
Utah State Charter School Finance Authority Providence Hall | ||||||
1,000,000 | 4.000%, 10/15/46 Series 2021A | Aa2/NR/NR | 818,000 | |||
Utah State Charter School Finance Authority Quest Academy | ||||||
500,000 | 5.000%, 04/15/37 | NR/AA/NR | 501,475 | |||
63 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Charter Schools (continued) | ||||||
Utah State Charter School Finance Authority Salt Lake Arts Academy | ||||||
$ 1,000,000 | 3.000%, 04/15/40 Series 2020A | NR/AA/NR | $ 728,810 | |||
Utah State Charter School Finance Authority Spectrum Academy | ||||||
625,000 | 4.000%, 04/15/33 Series 2020 | Aa2/NR/NR | 587,906 | |||
655,000 | 4.000%, 04/15/34 Series 2020 | Aa2/NR/NR | 613,565 | |||
Utah State Charter School Finance Authority Utah Charter Academies | ||||||
500,000 | 5.000%, 10/15/25 Series 2018 | NR/AA/NR | 505,685 | |||
Utah State Charter School Finance Authority Venture Academy | ||||||
285,000 | 4.000%, 10/15/24 | NR/AA/NR | 284,356 | |||
855,000 | 5.000%, 10/15/29 | NR/AA/NR | 861,028 | |||
1,095,000 | 5.000%, 10/15/34 | NR/AA/NR | 1,101,450 | |||
1,095,000 | 5.000%, 10/15/38 | NR/AA/NR | 1,096,150 | |||
Utah State Charter School Finance Authority Vista School | ||||||
1,080,000 | 4.000%, 10/15/35 | Aa2/NR/NR | 1,003,072 | |||
Utah State Charter School Finance Authority Voyage Academy | ||||||
670,000 | 5.000%, 03/15/27 144A | NR/NR/NR* | 661,853 | |||
2,440,000 | 5.500%, 03/15/37 144A | NR/NR/NR* | 2,376,633 | |||
4,785,000 | 5.600%, 03/15/47 144A | NR/NR/NR* | 4,399,185 | |||
Utah State Charter School Finance Authority Promontory School of Expeditionary Learning | ||||||
1,600,000 | 3.600%, 10/15/33 | Aa2/NR/NR | 1,480,448 | |||
Utah State Charter School Finance Authority Wasatch Peak Academy | ||||||
740,000 | 5.000%, 10/15/29 Series 2013A | NR/AA/NR | 740,296 | |||
700,000 | 5.000%, 10/15/36 Series 2013A | NR/AA/NR | 700,245 | |||
Total Charter Schools | 32,923,834 | |||||
64 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Electric (6.0%) | ||||||
Consolidated Wyoming Municipalities Electric Facilities Improvement Lease, Gillette | ||||||
$ 1,000,000 | 5.000%, 06/01/31 | A1/AA-/NR | $ 1,005,340 | |||
250,000 | 5.250%, 06/01/37 | NR/AA-/NR | 264,025 | |||
Heber Light & Power Co., Utah Electric Revenue | ||||||
500,000 | 4.000%, 12/15/36 Series 2019 AGMC Insured | A1/AA/AA- | 474,750 | |||
645,000 | 4.000%, 12/15/38 Series 2019 AGMC Insured | A1/AA/AA- | 599,476 | |||
285,000 | 5.000%, 12/15/24 Series 2023 BAMAC Insured | A2/AA/AA- | 288,651 | |||
500,000 | 5.000%, 12/15/36 Series 2023 BAMAC Insured | A2/AA/AA- | 528,355 | |||
Intermountain Power Agency, Utah Power Supply Revenue | ||||||
250,000 | 5.000%, 07/01/30 | Aa3/NR/AA- | 270,373 | |||
375,000 | 5.000%, 07/01/33 | Aa3/NR/AA- | 408,060 | |||
375,000 | 5.000%, 07/01/35 | Aa3/NR/AA- | 404,310 | |||
100,000 | 5.000%, 07/01/36 Series 2023A | Aa3/NR/AA- | 107,582 | |||
100,000 | 5.000%, 07/01/37 Series 2023A | Aa3/NR/AA- | 106,532 | |||
Lehi, Utah Electric Utility Revenue | ||||||
520,000 | 5.000%, 06/01/29 | NR/A+/NR | 549,182 | |||
850,000 | 5.000%, 06/01/31 | NR/A+/NR | 898,288 | |||
Lower Colorado River Authority, Texas Transmission Contract Revenue | ||||||
1,000,000 | 5.000%, 05/15/30 | NR/A/A+ | 1,015,010 | |||
San Antonio, Texas Electric & Gas Revenue System | ||||||
1,250,000 | 4.000%, 02/01/33 | Aa2/AA-/AA- | 1,198,262 | |||
Southeast Alaska Power Agency Electric Refunding & Improvement | ||||||
1,170,000 | 5.250%, 06/01/30 | NR/A/NR | 1,183,373 | |||
St. George, Utah Electric Revenue | ||||||
380,000 | 5.000%, 06/01/26 Series 2016 AGMC Insured | A1/AA/NR | 391,613 | |||
1,620,000 | 4.000%, 06/01/32 Series 2016 AGMC Insured | A1/AA/NR | 1,623,564 | |||
65 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Electric (continued) | ||||||
Utah Associated Municipal Power System Revenue, Horse Butte Wind Project | ||||||
$ 750,000 | 5.000%, 09/01/24 Series A | NR/A-/AA- | $ 757,043 | |||
375,000 | 5.000%, 09/01/30 Series 2017B | NR/A-/AA- | 393,038 | |||
Utah Associated Municipal Power System Revenue, Veyo Heat Recovery Project | ||||||
795,000 | 5.000%, 03/01/30 | NR/A/AA- | 804,445 | |||
905,000 | 5.000%, 03/01/32 | NR/A/AA- | 914,394 | |||
745,000 | 5.000%, 03/01/34 | NR/A/AA- | 751,616 | |||
Utah State Municipal Power Agency Power Supply System Revenue | ||||||
2,900,000 | 5.000%, 07/01/38 Series B | NR/A+/AA- | 2,948,546 | |||
Total Electric | 17,885,828 | |||||
Healthcare (0.7%) | ||||||
Hale Center, Texas Educational Facilities Corporation, Wayland Baptist University | ||||||
700,000 | 5.000%, 03/01/29 Series 2022 | NR/BBB+/NR | 706,958 | |||
Miami-Dade County, Florida Public Facilities, Jackson Health System | ||||||
1,000,000 | 5.000%, 06/01/29 Series A | Aa2/A+/AA- | 1,006,250 | |||
Utah County, Hospital Revenue, IHC Health Services | ||||||
300,000 | 4.050%, 05/15/51 Series 2016E VRDO*** | Aa1/AA+/NR | 300,000 | |||
Total Healthcare | 2,013,208 | |||||
Higher Education (8.0%) | ||||||
Salt Lake County, Utah Westminster College Project | ||||||
1,970,000 | 5.000%, 10/01/25 | NR/BBB-/NR | 1,962,159 | |||
955,000 | 5.000%, 10/01/28 | NR/BBB-/NR | 952,737 | |||
1,845,000 | 5.000%, 10/01/29 | NR/BBB-/NR | 1,836,144 | |||
1,005,000 | 5.000%, 10/01/29 | NR/BBB-/NR | 1,000,176 | |||
1,055,000 | 5.000%, 10/01/30 | NR/BBB-/NR | 1,046,592 | |||
66 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Higher Education (continued) | ||||||
South Dakota Board of Regents, Housing & Auxiliary Facilities System | ||||||
$ 500,000 | 5.000%, 04/01/28 | Aa3/NR/NR | $ 514,350 | |||
University of South Florida Financing Corp., Florida COP Refunding Master Lease Program | ||||||
1,000,000 | 5.000%, 07/01/31 Series A | A1/A+/NR | 1,019,950 | |||
Utah State Board of Regents, Dixie State University | ||||||
1,800,000 | 5.000%, 06/01/30 AGMC Insured | NR/AA/NR | 1,822,158 | |||
660,000 | 5.000%, 06/01/35 Series B AGMC Insured | NR/AA/NR | 680,467 | |||
690,000 | 5.000%, 06/01/36 Series B AGMC Insured | NR/AA/NR | 707,581 | |||
1,375,000 | 3.000%, 06/01/36 Series 2019 | NR/AA/NR | 1,126,042 | |||
Utah State Board of Regents, Student Building Fee, Salt Lake Community College | ||||||
1,295,000 | 5.000%, 03/01/26 Series 2018 | NR/AA/NR | 1,314,723 | |||
1,000,000 | 5.000%, 03/01/27 Series 2018 | NR/AA/NR | 1,014,270 | |||
Utah State Board of Regents, Student Facilities System Revenue, Weber State University | ||||||
750,000 | 5.000%, 04/01/29 AGMC Insured | NR/AA/NR | 790,860 | |||
1,000,000 | 3.000%, 04/01/35 Series 2021 BAMAC Insured | NR/AA/NR | 847,800 | |||
Utah State Board of Regents, University of Utah | ||||||
500,000 | 5.000%, 08/01/29 Series A | Aa1/AA+/NR | 520,635 | |||
480,000 | 5.000%, 08/01/33 Series A | Aa1/AA+/NR | 487,358 | |||
600,000 | 5.000%, 08/01/35 Series A | Aa1/AA+/NR | 607,830 | |||
500,000 | 4.000%, 08/01/36 Series A | Aa1/AA+/NR | 485,560 | |||
1,000,000 | 5.000%, 08/01/35 Series B-1 | Aa1/AA+/NR | 1,026,370 | |||
1,500,000 | 5.000%, 08/01/36 Series B-1 | Aa1/AA+/NR | 1,536,330 | |||
Utah State Board of Regents, Utah State University | ||||||
1,105,000 | 4.000%, 12/01/30 Series B | NR/AA/NR | 1,101,254 | |||
2,055,000 | 3.000%, 12/01/36 Series B | NR/AA/NR | 1,673,962 | |||
Total Higher Education | 24,075,308 | |||||
67 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Housing (2.4%) | ||||||
Alaska Housing Finance Corp., Collaterized Bonds, Veterans Mortgage Program | ||||||
$ 525,000 | 4.000%, 06/01/36 | Aaa/AAA/NR | $ 492,287 | |||
South Dakota Housing Development Authority Homeownership Mortgage | ||||||
250,000 | 1.000%, 05/01/26 Series 2020C | Aaa/AAA/NR | 228,703 | |||
500,000 | 1.350%, 05/01/28 Series 2020C | Aaa/AAA/NR | 433,835 | |||
500,000 | 1.400%, 11/01/28 Series 2020C | Aaa/AAA/NR | 428,990 | |||
Utah Housing Corporation Single Family Mortgage | ||||||
570,000 | 4.600%, 07/01/34 Series B-1 Class I | Aaa/AAA/AAA | 570,182 | |||
20,000 | 4.625%, 07/01/32 Series B-1 Class II | Aa2/AA+/AA | 20,008 | |||
2,805,000 | 3.850%, 01/01/31 AMT Series D Class III FHA Insured | Aa3/AA/AA | 2,755,828 | |||
480,000 | 4.000%, 01/01/36 Series D FHA Insured | Aa3/AA/AA | 459,437 | |||
1,000,000 | 6.000%, 07/01/53 Series 2023A PAC | Aa2/NR/NR | 1,049,470 | |||
Vancouver, Washington Housing Authority, Anthem Park and Columbia House Projects | ||||||
500,000 | 4.000%, 06/01/35 Series 2020 | NR/AA/NR | 467,340 | |||
500,000 | 3.000%, 06/01/38 Series 2020 | NR/AA/NR | 382,300 | |||
Total Housing | 7,288,380 | |||||
Local Public Property (16.7%) | ||||||
Alaska State Municipal Bond Bank | ||||||
540,000 | 5.000%, 02/01/30 AMT | NR/A+/A | 552,285 | |||
565,000 | 5.000%, 02/01/31 AMT | NR/A+/A | 575,859 | |||
590,000 | 5.000%, 02/01/32 AMT | NR/A+/A | 598,903 | |||
215,000 | 5.000%, 12/01/23 AMT 2023 Series Two | A1/A+/NR | 215,052 | |||
90,000 | 5.000%, 12/01/37 AMT 2023 Series Two | A1/A+/NR | 90,173 | |||
Bluffdale, Utah Local Building Authority Lease Revenue | ||||||
1,215,000 | 4.000%, 03/01/35 | Aa2/NR/NR | 1,148,868 | |||
68 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Local Public Property (continued) | ||||||
Downtown Redevelopment Authority, Texas Tax Increment Contract Revenue | ||||||
$ 1,000,000 | 5.000%, 09/01/30 BAMI Insured | NR/AA/NR | $ 1,022,530 | |||
Eagle Mountain, Utah Special Assessment Area | ||||||
125,000 | 5.250%, 05/01/28 Series 2013 | NR/AA-/NR | 125,041 | |||
Jacksonville, Florida Special Revenue Bonds | ||||||
1,000,000 | 5.250%, 10/01/37 Series 2022C | NR/AA/AA- | 1,082,910 | |||
Lehi, Utah Local Building Authority Lease Revenue | ||||||
300,000 | 5.000%, 06/15/29 Series 2022 | NR/AA-/AA+ | 318,102 | |||
500,000 | 5.000%, 06/15/30 Series 2022 | NR/AA-/AA+ | 534,375 | |||
225,000 | 5.250%, 06/15/37 Series 2022 | NR/AA-/AA+ | 239,240 | |||
Manatee County, Florida Revenue Improvement & Refunding | ||||||
500,000 | 5.250%, 10/01/34 Series 2022C | Aaa/NR/AA+ | 561,460 | |||
Mesquite, Nevada New Special Improvement District | ||||||
40,000 | 5.500%, 08/01/25 | NR/NR/NR* | 40,088 | |||
Midvale, Utah Redevelopment Agency Tax Increment & Sales Tax Revenue Refunding | ||||||
1,230,000 | 5.000%, 05/01/31 | NR/AA+/AA | 1,285,965 | |||
1,000,000 | 5.000%, 05/01/32 | NR/AA+/NR | 1,033,560 | |||
Murray City, Utah Municipal Building Authority Lease Revenue | ||||||
280,000 | 4.000%, 12/01/30 Series 2020 | Aa3/NR/NR | 283,517 | |||
480,000 | 4.000%, 12/01/31 Series 2020 | Aa3/NR/NR | 484,910 | |||
300,000 | 4.000%, 12/01/32 Series 2020 | Aa3/NR/NR | 302,289 | |||
Old Spanish Trail/Almeda Corridors Redevelopment Authority, Texas Tax Increment Contract Revenue | ||||||
1,000,000 | 4.000%, 09/01/35 BAMI Insured | NR/AA/NR | 1,004,370 | |||
Orange County, Florida Tourist Development Tax Revenue Refunding | ||||||
1,000,000 | 5.000%, 10/01/30 | Aa2/AA-/AA | 1,018,470 | |||
69 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Local Public Property (continued) | ||||||
Pennington County, South Dakota COP Limited Tax | ||||||
$ 1,000,000 | 5.000%, 12/01/46 Series 2022A | Aa1/NR/NR | $ 1,005,580 | |||
Saint George Place, Texas Redevelopment Authority Tax Increment Contract | ||||||
605,000 | 4.000%, 09/01/30 AGMC Insured | A1/AA/NR | 605,290 | |||
Salt Lake City, Utah Local Building Authority Lease Revenue | ||||||
330,000 | 4.000%, 10/15/23 Series A | Aa1/NR/AA+ | 330,007 | |||
600,000 | 5.000%, 04/15/32 Series A | Aa1/NR/NR | 620,826 | |||
395,000 | 4.000%, 04/15/32 Series A | Aa1/NR/NR | 396,161 | |||
425,000 | 4.000%, 04/15/34 Series A | Aa1/NR/NR | 425,948 | |||
1,075,000 | 5.000%, 04/15/35 Series A | Aa1/NR/NR | 1,104,100 | |||
460,000 | 4.000%, 04/15/36 Series A | Aa1/NR/NR | 450,621 | |||
Salt Lake City, Utah Mosquito Abatement District Local Building Authority Lease Revenue | ||||||
730,000 | 5.000%, 02/15/29 | Aa3/NR/NR | 761,682 | |||
810,000 | 5.000%, 02/15/31 | Aa3/NR/NR | 839,686 | |||
Salt Lake City, Utah Municipal Building Authority Lease Revenue | ||||||
975,000 | 4.000%, 01/15/34 | NR/AA+/AA+ | 982,566 | |||
South Jordan, Utah Special Assessment (Daybreak Assessment Area No. 1) | ||||||
945,000 | 4.000%, 11/01/27 | NR/AA+/NR | 953,647 | |||
1,190,000 | 4.000%, 11/01/28 | NR/AA+/NR | 1,198,532 | |||
1,035,000 | 4.000%, 11/01/30 | NR/AA+/NR | 1,035,838 | |||
South Salt Lake, Utah Redevelopment Agency Excise Tax & Tax Increment Revenue Refunding | ||||||
1,035,000 | 4.000%, 11/01/29 Series 2020 | NR/AA/NR | 1,043,083 | |||
1,080,000 | 4.000%, 11/01/30 Series 2020 | NR/AA/NR | 1,083,467 | |||
Tooele County, Utah Municipal Building Authority Lease Revenue Cross-Over | ||||||
850,000 | 4.000%, 12/15/28 | NR/AA/NR | 860,557 | |||
885,000 | 4.000%, 12/15/29 | NR/AA/NR | 890,983 | |||
920,000 | 4.000%, 12/15/30 | NR/AA/NR | 924,775 | |||
70 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Local Public Property (continued) | ||||||
Unified Utah Fire Service Area Local Building Authority Lease Revenue | ||||||
$ 1,800,000 | 4.000%, 04/01/31 | Aa2/NR/NR | $ 1,810,566 | |||
2,350,000 | 4.000%, 04/01/32 | Aa2/NR/NR | 2,351,104 | |||
1,875,000 | 4.000%, 04/01/32 | Aa2/NR/NR | 1,872,975 | |||
Vineyard Redevelopment Agency, Utah Tax Increment Revenue And Refunding Bonds | ||||||
750,000 | 5.000%, 05/01/25 Series 2021 AGMC Insured | NR/AA/NR | 762,090 | |||
350,000 | 4.000%, 05/01/33 Series 2021 AGMC Insured | NR/AA/NR | 350,441 | |||
Wasatch County, Utah Municipal Building Authority Lease Revenue | ||||||
410,000 | 4.000%, 12/01/28 Series 2021 | NR/AA-/NR | 413,489 | |||
585,000 | 4.000%, 12/01/29 Series 2021 | NR/AA-/NR | 590,569 | |||
605,000 | 4.000%, 12/01/30 Series 2021 | NR/AA-/NR | 611,461 | |||
Washington County, Utah Municipal Building Authority Lease Revenue | ||||||
500,000 | 5.000%, 10/01/32 | Aa3/NR/NR | 513,920 | |||
500,000 | 5.000%, 10/01/37 | Aa3/NR/NR | 507,015 | |||
Weber County, Utah Special Assessment Summit Mountain Area | ||||||
1,495,000 | 5.500%, 01/15/28 | NR/AA/NR | 1,496,450 | |||
3,860,000 | 5.750%, 01/15/33 | NR/AA/NR | 3,863,706 | |||
West Jordan, Utah Municipal Building Authority Lease Revenue | ||||||
1,000,000 | 5.000%, 10/01/29 | Aa3/NR/NR | 1,029,840 | |||
1,000,000 | 5.000%, 10/01/34 | Aa3/NR/NR | 1,025,860 | |||
West Valley City, Utah Municipal Building Authority Lease Revenue Refunding | ||||||
900,000 | 4.000%, 02/01/33 AGMC Insured | NR/AA/AA- | 895,221 | |||
1,000,000 | 5.000%, 02/01/34 AGMC Insured | NR/AA/AA- | 1,023,630 | |||
300,000 | 5.000%, 02/01/34 AGMC Insured | NR/AA/AA- | 316,938 | |||
810,000 | 4.000%, 02/01/38 AGMC Insured | NR/AA/AA- | 740,802 | |||
71 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Local Public Property (continued) | ||||||
West Valley City, Utah Redevelopment Agency Revenue Refunding | ||||||
$ 1,885,000 | 5.000%, 11/01/36 | NR/AA/NR | $ 1,929,316 | |||
Total Local Public Property | 50,136,709 | |||||
Public Schools (3.6%) | ||||||
Alpine, Utah Local Building Authority School District Lease Revenue | ||||||
985,000 | 4.000%, 03/15/28 | Aa1/NR/NR | 996,948 | |||
Canyons School District Utah, Local Building Authority Lease | ||||||
725,000 | 4.000%, 06/15/33 Series 2021 | Aa1/NR/NR | 731,953 | |||
750,000 | 4.000%, 06/15/34 Series 2021 | Aa1/NR/NR | 754,260 | |||
Davis County, Utah Municipal Building Authority Crossover Refunding Lease Revenue | ||||||
1,085,000 | 4.000%, 11/01/32 Series 2020 | NR/AA/NR | 1,092,302 | |||
Duchesne School District Utah, Municipal Building Authority Lease | ||||||
750,000 | 5.000%, 06/01/36 Series 2022 | A2/NR/NR | 776,865 | |||
750,000 | 4.000%, 06/01/38 Series 2022 | A2/NR/NR | 672,705 | |||
Grand City, Utah Local Building Authority School District Lease Revenue | ||||||
1,665,000 | 5.000%, 12/15/34 AGMC Insured | A1/AA/NR | 1,684,131 | |||
Ogden City, Utah Municipal Building Authority School District Lease Revenue | ||||||
1,125,000 | 5.000%, 01/15/30 | A1/NR/NR | 1,163,722 | |||
1,315,000 | 5.000%, 01/15/31 | A1/NR/NR | 1,317,564 | |||
Provo City, Utah Municipal Building Authority School District Lease Revenue | ||||||
1,500,000 | 5.000%, 03/15/33 Series 2022 | Aa3/NR/NR | 1,639,605 | |||
Total Public Schools | 10,830,055 | |||||
72 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Sales Tax (16.2%) | ||||||
Bountiful, Utah Sales Tax Revenue | ||||||
$ 355,000 | 5.000%, 07/01/24 Series 2023 | NR/AA+/NR | $ 358,273 | |||
500,000 | 5.000%, 07/01/36 Series 2023 | NR/AA+/NR | 543,585 | |||
250,000 | 5.000%, 07/01/37 Series 2023 | NR/AA+/NR | 268,895 | |||
550,000 | 5.000%, 07/01/43 Series 2023 | NR/AA+/NR | 575,432 | |||
Draper, Utah Sales Tax Revenue | ||||||
765,000 | 4.000%, 11/15/39 Series 2022 | NR/AAA/NR | 716,560 | |||
Herriman City, Utah Sales & Franchise Tax Revenue Refunding | ||||||
2,135,000 | 4.000%, 08/01/30 Series B | NR/AA+/NR | 2,139,505 | |||
1,515,000 | 5.000%, 08/01/33 Series B | NR/AA+/NR | 1,535,559 | |||
Holladay, Utah Sales Tax Revenue | ||||||
965,000 | 5.000%, 11/15/29 Series 2022 | NR/AA+/NR | 1,042,702 | |||
Lehi, Utah Franchise & Sales Tax Revenue (Broadband Project) | ||||||
1,000,000 | 4.000%, 02/01/32 Series 2021 AGMC Insured | NR/AA/NR | 1,012,020 | |||
1,000,000 | 4.000%, 02/01/33 Series 2021 AGMC Insured | NR/AA/NR | 1,008,700 | |||
500,000 | 4.000%, 02/01/34 Series 2021 AGMC Insured | NR/AA/NR | 502,260 | |||
500,000 | 4.000%, 02/01/35 Series 2021 AGMC Insured | NR/AA/NR | 500,920 | |||
Lehi, Utah Sales Tax Revenue | ||||||
1,220,000 | 4.000%, 06/01/35 Series 2019 | NR/AA+/NR | 1,220,220 | |||
Lindon, Utah Sales Tax Revenue | ||||||
575,000 | 4.000%, 07/15/31 Series 2015 | NR/AA-/NR | 568,203 | |||
Mapleton City, Utah Municipal Energy Sales & Sales Tax & Telecommunications Fee | ||||||
1,085,000 | 3.000%, 06/15/31 Series 2021 | NR/A+/NR | 976,543 | |||
780,000 | 3.000%, 06/15/33 Series 2021 | NR/A+/NR | 680,137 | |||
1,255,000 | 3.000%, 06/15/36 Series 2021 | NR/A+/NR | 1,032,827 | |||
Miami-Dade County, Florida Transit System Sales Surtax Revenue | ||||||
1,000,000 | 5.000%, 07/01/34 | A1/AA/AA | 1,014,280 | |||
73 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Sales Tax (continued) | ||||||
Ogden City, Utah Franchise Tax Revenue | ||||||
$ 1,625,000 | 3.000%, 01/15/31 | NR/AA/NR | $ 1,483,365 | |||
Ogden City, Utah Sales Tax Revenue | ||||||
1,550,000 | 5.000%, 01/15/36 Series 2023 | NR/AAA/NR | 1,687,903 | |||
Providence City, Utah Franchise & Sales Tax Revenue | ||||||
1,270,000 | 3.000%, 03/01/29 Series 2021 | NR/A-/NR | 1,164,717 | |||
Riverton City, Utah Franchise & Sales Tax Revenue | ||||||
750,000 | 4.000%, 06/01/30 | NR/AA+/AAA | 751,088 | |||
South Jordan, Utah Redevelopment Agency Subordinated Sales Tax & Tax Increment Revenue | ||||||
1,000,000 | 5.000%, 04/01/29 | NR/AA/AAA | 1,015,300 | |||
Spearfish, South Dakota Sales Tax Revenue | ||||||
975,000 | 4.000%, 12/15/29 Series 2022 | A1/NR/NR | 978,403 | |||
St. George, Utah Sales Tax Revenue | ||||||
1,385,000 | 5.000%, 08/01/38 Series 2023 | NR/AA+/NR | 1,477,712 | |||
1,770,000 | 5.000%, 08/01/43 Series 2023 | NR/AA+/NR | 1,859,633 | |||
Summit County, Utah Transportation Sales Tax Revenue | ||||||
1,200,000 | 4.000%, 12/15/28 Series 2018 | NR/AA/NR | 1,208,220 | |||
1,450,000 | 4.000%, 12/15/29 Series 2018 | NR/AA/NR | 1,457,410 | |||
Utah County, Utah Excise Tax Revenue Refunding | ||||||
1,690,000 | 4.000%, 12/01/36 Series 2020 | NR/AA+/NR | 1,645,587 | |||
Utah County, Utah Transportation Sales Tax Revenue Refunding | ||||||
510,000 | 4.000%, 12/01/35 Series 2021 | NR/AA-/NR | 502,982 | |||
Utah Infrastructure Agency Telecommunications & Sales Tax, West Haven | ||||||
1,200,000 | 5.000%, 10/15/35 Series 2022 | NR/AA-/NR | 1,274,748 | |||
74 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Sales Tax (continued) | ||||||
Utah Transit Authority Sales Tax Revenue | ||||||
$ 2,950,000 | 4.000%, 12/15/34 Series A | Aa2/AA+/AA | $ 2,934,837 | |||
3,440,000 | 4.000%, 12/15/37 Series A | Aa2/AA+/AA | 3,251,626 | |||
3,580,000 | 4.000%, 12/15/38 Series A | Aa2/AA+/AA | 3,372,646 | |||
Utah Transit Authority Sales Tax Revenue Subordinated | ||||||
1,000,000 | 5.000%, 12/15/32 | Aa3/AA/AA | 1,054,970 | |||
Utah Transit Authority Sales Tax Revenue Subordinated, Capital Appreciation | ||||||
3,000,000 | zero coupon, 12/15/32 | Aa3/AA/AA | 1,975,830 | |||
Watertown, South Dakota Sales Tax Revenue | ||||||
1,110,000 | 3.000%, 12/01/34 Series 2021 | NR/A/NR | 978,576 | |||
215,000 | 5.000%, 12/01/23 Series 2022A BAMI Insured | NR/AA/NR | 215,292 | |||
335,000 | 5.000%, 12/01/24 Series 2022A BAMI Insured | NR/AA/NR | 339,067 | |||
350,000 | 5.000%, 12/01/25 Series 2022A BAMI Insured | NR/AA/NR | 358,001 | |||
West Valley City, Utah Sales Tax Revenue Capital Appreciation Bonds, Refunding | ||||||
3,375,000 | zero coupon, 07/15/35 | NR/AA+/NR | 1,820,475 | |||
Total Sales Tax | 48,505,009 | |||||
State Agency (4.7%) | ||||||
Utah Infrastructure Agency Telecommunications, Franchise & Sales Tax, Cedar Hills Project | ||||||
1,230,000 | 4.000%, 10/15/32 Series 2022 | NR/A+/NR | 1,205,068 | |||
905,000 | 4.000%, 10/15/37 Series 2022 | NR/A+/NR | 811,414 | |||
1,125,000 | 4.250%, 10/15/42 Series 2022 | NR/A+/NR | 993,634 | |||
Utah Infrastructure Agency Telecommunications & Franchise Tax, Clearfield City | ||||||
315,000 | 5.000%, 10/15/25 Series 2020 | NR/A+/NR | 320,175 | |||
135,000 | 5.000%, 10/15/26 Series 2020 | NR/A+/NR | 138,668 | |||
350,000 | 5.000%, 10/15/27 Series 2020 | NR/A+/NR | 363,332 | |||
75 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
State Agency (continued) | ||||||
Utah Infrastructure Agency Telecommunications & Franchise Tax, Layton City | ||||||
$ 500,000 | 5.000%, 10/15/30 Series 2018 | NR/A+/NR | $ 522,400 | |||
Utah Infrastructure Agency Telecommunications & Franchise Tax, Payson City | ||||||
485,000 | 5.000%, 10/01/29 Series 2019 | NR/A+/NR | 503,512 | |||
640,000 | 4.000%, 10/01/34 Series 2019 | NR/A+/NR | 608,634 | |||
Utah Infrastructure Agency Telecommunications, Franchise & Sales Tax, Santa Clara Project | ||||||
1,180,000 | 4.000%, 10/15/32 Series 2022 | NR/A/NR | 1,156,081 | |||
1,010,000 | 4.000%, 10/15/37 Series 2022 | NR/A/NR | 905,556 | |||
Utah Infrastructure Agency Telecommunications, Franchise & Sales Tax, Syracuse City Project | ||||||
1,000,000 | 4.000%, 10/15/30 Series 2021 | NR/AA-/NR | 1,001,380 | |||
Utah State Building Ownership Authority Lease Revenue State Facilities Master Lease Program | ||||||
1,000,000 | 5.000%, 05/15/24 | Aa1/AA+/NR | 1,006,160 | |||
905,000 | 4.000%, 05/15/29 | Aa1/AA+/NR | 916,566 | |||
1,775,000 | 3.000%, 05/15/29 | Aa1/AA+/NR | 1,633,337 | |||
1,000,000 | 3.000%, 05/15/29 | Aa1/AA+/NR | 918,230 | |||
940,000 | 4.000%, 05/15/30 | Aa1/AA+/NR | 949,898 | |||
Total State Agency | 13,954,045 | |||||
Transportation (1.0%) | ||||||
Pharr, Texas International Toll Bridge System Revenue | ||||||
1,000,000 | 4.000%, 08/15/35 Series 2021 | A2/A/NR | 932,250 | |||
Port Seattle, Washington Intermediate Lien Revenue | ||||||
1,875,000 | 5.000%, 05/01/29 Series 2018A AMT | A1/AA-/AA- | 1,916,569 | |||
Utah Transit Authority Sales Tax & Transportation Revenue | ||||||
195,000 | 5.250%, 06/15/32 AGMC Insured | Aa2/AA+/AA | 215,428 | |||
Total Transportation | 3,064,247 | |||||
76 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Water and Sewer (9.1%) | ||||||
Brian Head, Utah Water Revenue Refunding | ||||||
$ 720,000 | 3.000%, 04/01/36 Series 2021 AGMC Insured | NR/AA/NR | $ 600,948 | |||
Central Utah Water Conservancy District Refunding | ||||||
1,000,000 | 4.000%, 10/01/38 Series 2020D | NR/AA+/AA+ | 938,730 | |||
Central Valley, Utah Water Reclamation Facility, Green Bond | ||||||
1,215,000 | 3.000%, 03/01/32 Series 2021B | NR/AA/AA | 1,112,478 | |||
1,255,000 | 3.000%, 03/01/33 Series 2021B | NR/AA/AA | 1,127,178 | |||
1,090,000 | 3.000%, 03/01/34 Series 2021B | NR/AA/AA | 956,181 | |||
Central Weber, Utah Sewer Improvement District | ||||||
550,000 | 5.000%, 03/01/36 Series 2023A | NR/AA/AAA | 597,800 | |||
Eagle Mountain, Utah Water & Sewer Revenue Refunding | ||||||
420,000 | 4.000%, 11/15/24 Series A BAMI Insured | NR/AA/NR | 420,811 | |||
El Paso, Texas Water & Sewer Revenue Refunding | ||||||
1,000,000 | 4.500%, 03/01/31 Series C | NR/AA+/AA+ | 1,005,600 | |||
Fairview City, Utah Water & Sewer Revenue Refunding | ||||||
725,000 | 4.000%, 06/15/46 Series 2022 | NR/BBB/NR | 558,939 | |||
Florida State Governmental Utility Authority Refunding Revenue Bonds (Lehigh Utility System) | ||||||
500,000 | 5.000%, 10/01/31 Series 2014 AGMC Insured | A1/AA/NR | 504,980 | |||
Hooper, Utah Water Improvement District Revenue Refunding | ||||||
1,000,000 | 4.000%, 06/15/34 Series 2019 | NR/AA-/NR | 984,520 | |||
220,000 | 4.000%, 06/15/39 Series 2019 | NR/AA-/NR | 201,601 | |||
Jordan Valley, Utah Water Conservancy District Revenue | ||||||
1,000,000 | 4.000%, 10/01/32 Series B | NR/AA+/AA+ | 1,001,800 | |||
Jordanelle, Utah Special Service District | ||||||
299,000 | 6.000%, 11/15/23 | NR/NR/NR* | 298,453 | |||
77 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Water and Sewer (continued) | ||||||
Lakewood, Washington Water District, Pierce County | ||||||
$ 750,000 | 4.000%, 12/01/37 Series 2019A AMT | NR/AA/NR | $ 686,737 | |||
Okaloosa County, Florida Water and Sewer Revenue | ||||||
1,000,000 | 5.000%, 07/01/30 | Aa2/NR/AA+ | 1,016,640 | |||
Pleasant Grove City, Utah Storm Water Revenue Refunding | ||||||
510,000 | 4.000%, 07/15/30 Series 2020 BAMI Insured | NR/AA/NR | 512,193 | |||
525,000 | 4.000%, 07/15/31 Series 2020 BAMI Insured | NR/AA/NR | 527,184 | |||
Randall, South Dakota Community Water District | ||||||
1,030,000 | 5.000%, 12/01/37 Series 2023 | NR/A/NR | 1,071,983 | |||
Salt Lake City, Utah Public Utilities Revenue | ||||||
1,000,000 | 5.000%, 02/01/32 | Aa1/AAA/NR | 1,024,200 | |||
1,400,000 | 5.000%, 02/01/33 | Aa1/AAA/NR | 1,432,634 | |||
1,000,000 | 5.000%, 02/01/35 | Aa1/AAA/NR | 1,019,730 | |||
500,000 | 4.000%, 02/01/37 | Aa1/AAA/NR | 486,750 | |||
500,000 | 4.000%, 02/01/38 | Aa1/AAA/NR | 473,050 | |||
San Jacinto, Texas River Authority Woodlands Waste Disposal | ||||||
1,000,000 | 5.000%, 10/01/30 BAMI Insured | NR/AA/NR | 1,001,180 | |||
Timpanogos, Utah Special Service District | ||||||
845,000 | 5.000%, 06/01/24 | NR/AA/AA+ | 851,608 | |||
Utah Water Finance Agency Revenue | ||||||
950,000 | 4.000%, 03/01/33 | NR/AA/AAA | 952,669 | |||
1,000,000 | 4.000%, 03/01/34 | NR/AA/AA | 1,003,580 | |||
1,000,000 | 5.000%, 03/01/35 | NR/AA/AA | 1,028,960 | |||
1,295,000 | 5.000%, 03/01/38 | NR/AA/AA | 1,346,373 | |||
Weber Basin, Utah Water Conservancy District Refunding | ||||||
915,000 | 4.000%, 10/01/31 Series A | NR/AA+/AAA | 915,174 | |||
West Harris County, Texas Regional Water Authority | ||||||
815,000 | 5.000%, 12/15/26 Series A | A1/AA-/A+ | 826,068 |
78 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Water and Sewer (continued) | ||||||
Vineyard, Utah Water & Sewer Revenue | ||||||
$ 695,000 | 5.250%, 05/01/48 Series 2023 BAMI Insured | NR/AA/AA | $ 720,006 | |||
Total Water and Sewer | 27,206,738 | |||||
Total Revenue Bonds | 258,722,856 | |||||
Pre-Refunded Bonds\Escrowed to Maturity Bonds (2.1%)†† | ||||||
Pre-Refunded General Obligation Bonds (0.8%) | ||||||
City and County (0.4%) | ||||||
Miami Gardens, Florida | ||||||
1,000,000 | 5.000%, 07/01/29 | Aa3/A+/NR | 1,007,900 | |||
Public Schools (0.4%) | ||||||
Leander Independent School District, Texas (Williamson & Travis Counties) Unlimited Tax School Building | ||||||
2,035,000 | zero coupon, 08/15/47 Series 2014 C PSF Guaranteed | NR/NR/NR* | 561,111 | |||
Wylie, Texas Independent School District Capital Appreciation | ||||||
1,000,000 | zero coupon, 08/15/32 PSF Guaranteed | Aaa/NR/NR | 713,700 | |||
Total Public Schools | 1,274,811 | |||||
Total Pre-Refunded General Obligation Bonds | 2,282,711 | |||||
Pre-Refunded\Escrowed to Maturity Revenue Bonds (1.3%) | ||||||
Charter Schools (0.3%) | ||||||
Utah State Charter School Finance Authority Legacy Preparatory Academy | ||||||
140,000 | 4.000%, 04/15/24 ETM | NR/NR/NR* | 140,105 | |||
820,000 | 5.000%, 04/15/29 | NR/NR/NR* | 830,135 | |||
Total Charter Schools | 970,240 | |||||
79 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Principal Amount | Pre-Refunded\Escrowed to Maturity Revenue Bonds (continued) | Ratings Moody’s, S&P and Fitch | Value | |||
Local Public Property (0.5%) | ||||||
Jacksonville, Florida Special Revenue and Refunding Bonds | ||||||
$ 1,015,000 | 5.250%, 10/01/32 Series A | Aa2/AA/AA- | $ 1,017,314 | |||
St. Augustine, Florida Capital Improvement Refunding | ||||||
500,000 | 5.000%, 10/01/34 | Aa2/AA+/NR | 500,000 | |||
Total Local Public Property | 1,517,314 | |||||
Sales Tax (0.5%) | ||||||
Utah Transit Authority Sales Tax Revenue | ||||||
1,560,000 | 5.000%, 06/15/37 Series A | Aa3/AA/NR | 1,591,278 | |||
Total Pre-Refunded\Escrowed to Maturity Revenue Bonds | 4,078,832 | |||||
Total Pre-Refunded\Escrowed to Maturity Bonds | 6,361,543 | |||||
Total Municipal Bonds (cost $306,592,617) | 286,858,778 | |||||
Shares | Short-Term Investment (3.2%) | |||||
9,473,119 | Dreyfus Treasury Obligations Cash Management - Institutional Shares, 5.23%** (cost $9,473,119) | Aaa-mf/AAAm/NR | 9,473,119 | |||
Total Investments (cost $316,065,736 - note 4) | 99.0% | 296,331,897 | ||||
Other assets less liabilities | 1.0 | 3,137,277 | ||||
Net Assets | 100.0% | $ 299,469,174 |
Portfolio Distribution By Quality Rating | Percentage of Investments† | |
Aaa of Moody's or AAA of S&P or Fitch | 7.7% | |
Pre-refunded bonds\ETM bonds†† | 2.2 | |
Aa of Moody's or AA of S&P or Fitch | 67.0 | |
A of Moody's or S&P or Fitch | 15.8 | |
BBB of S&P | 2.8 | |
Not Rated* | 4.5 | |
100.0% |
80 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH SCHEDULE OF INVESTMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
PORTFOLIO ABBREVIATIONS |
AGMC - Assured Guaranty Municipal Corp. AMT - Alternative Minimum Tax BAMAC - Build America Mutual Assurance Co. BAMI - Build America Mutual Insurance COP - Certificates of Participation ETM - Escrowed to Maturity FHA - Federal Housing Administration IHC - Intermountain Health Care NR - Not Rated PAC - Planned Amortization Class PSF - Permanent School Fund VRDO – Variable Rate Demand Obligation |
* | Any security not rated (“NR”) by any of the Nationally Recognized Statistical Rating Organizations (“NRSRO”) has been determined by the Investment Adviser to have sufficient quality to be ranked in the top four credit ratings if a credit rating were to be assigned by a NRSRO. |
** | The rate is an annualized seven-day yield at period end. |
*** | Variable rate demand obligations (“VRDOs”) are payable upon demand within the same day for securities with daily liquidity or seven days for securities with weekly liquidity. |
† | Where applicable, calculated using the highest rating of the three NRSRO. Percentages in this table do not include the Short-Term Investment. |
†† | Pre-refunded bonds are bonds for which U.S. Government Obligations usually have been placed in escrow to retire the bonds at their earliest call date. Escrowed to Maturity bonds are bonds where money has been placed in the escrow account which is used to pay principal and interest through the bond’s originally scheduled maturity date. Escrowed to Maturity are shown as ETM. All other securities in the category are pre-refunded. |
Note: 144A – Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2023, these securities amounted to a value of $12,465,889 or 4.2% of net assets. |
See accompanying notes to financial statements.
81 | Aquila Municipal Trust
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 2023 (unaudited) |
AQUILA TAX-FREE TRUST OF ARIZONA | AQUILA TAX-FREE FUND OF COLORADO | ||||
ASSETS | |||||
Investments at value (cost $200,579,334 and $153,400,939 respectively) | $ | 189,858,005 | $ | 148,689,406 | |
Cash | 2,256 | 101,751 | |||
Interest receivable | 2,097,660 | 1,943,147 | |||
Receivable for Fund Shares sold | 172,606 | 157,827 | |||
Other assets | 22,517 | 23,869 | |||
Total assets | 192,153,044 | 150,916,000 | |||
LIABILITIES | |||||
Payables: | |||||
Payable for investment securities purchased | — | 2,411,517 | |||
Fund shares redeemed | 242,548 | 757,072 | |||
Dividends | 76,333 | 44,606 | |||
Management fee | 64,414 | 59,385 | |||
Distribution and service fees payable | 261 | 34 | |||
Other expenses | 68,139 | 55,918 | |||
Total liabilities | 451,695 | 3,328,532 | |||
NET ASSETS | $ | 191,701,349 | $ | 147,587,468 | |
Net Assets consist of: | |||||
Capital Stock – Authorized an unlimited number of shares, par value $0.01 per share | $ | 203,197 | $ | 155,484 | |
Additional paid-in capital | 208,364,087 | 161,876,095 | |||
Total distributable earnings (losses) | (16,865,935) | (14,444,111) | |||
$ | 191,701,349 | $ | 147,587,468 | ||
CLASS A | |||||
Net Assets | $ | 142,004,688 | $ | 113,471,887 | |
Capital shares outstanding | 15,056,095 | 11,959,641 | |||
Net asset value and redemption price per share | $ | 9.43 | $ | 9.49 | |
Maximum offering price per share (100/97 of $9.43and 100/97 of $9.49, respectively) | $ | 9.72 | $ | 9.78 | |
CLASS C | |||||
Net Assets | $ | 1,849,974 | $ | 1,568,405 | |
Capital shares outstanding | 196,305 | 165,774 | |||
Net asset value and offering price per share | $ | 9.42 | $ | 9.46 | |
CLASS Y | |||||
Net Assets | $ | 47,846,687 | $ | 32,547,176 | |
Capital shares outstanding | 5,067,347 | 3,422,961 | |||
Net asset value, offering and redemption price per share | $ | 9.44 | $ | 9.51 |
See accompanying notes to financial statements.
82 | Aquila Municipal Trust
STATEMENT OF ASSETS AND LIABILITIES (continued) SEPTEMBER 30, 2023 (unaudited) |
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY | AQUILA TAX-FREE TRUST OF OREGON | ||||
ASSETS | |||||
Investments at value (cost $169,884,728 and $452,775,449 respectively) | $ | 156,811,597 | $ | 433,296,600 | |
Receivable for investments sold | — | 1,081,961 | |||
Interest receivable | 1,929,337 | 6,422,104 | |||
Receivable for Fund Shares sold | 20,619 | 489,465 | |||
Other assets | 21,101 | 38,368 | |||
Total assets | 158,782,654 | 441,328,498 | |||
LIABILITIES | |||||
Payable for investment securities purchased | 1,015,000 | 1,048,331 | |||
Fund shares redeemed | 580,498 | 769,805 | |||
Dividends | 52,174 | 157,446 | |||
Management fee | 52,508 | 145,893 | |||
Distribution and service fees payable | 197 | 326 | |||
Other expenses | 146,723 | 102,137 | |||
Total liabilities | 1,847,100 | 2,223,938 | |||
NET ASSETS | $ | 156,935,554 | $ | 439,104,560 | |
Net Assets consist of: | |||||
Capital Stock – Authorized an unlimited number of shares, par value $0.01 per share | $ | 164,305 | $ | 438,351 | |
Additional paid-in capital | 170,753,825 | 477,413,642 | |||
Total distributable earnings (losses) | (13,982,576) | (38,747,433) | |||
$ | 156,935,554 | $ | 439,104,560 | ||
CLASS A | |||||
Net Assets | $ | 104,879,245 | $ | 257,558,449 | |
Capital shares outstanding | 10,981,359 | 25,706,218 | |||
Net asset value and redemption price per share | $ | 9.55 | $ | 10.02 | |
Maximum offering price per share (100/97 of $9.55 and 100/97 of $10.02, respectively) | $ | 9.85 | $ | 10.33 | |
CLASS C | |||||
Net Assets | $ | 1,640,712 | $ | 2,738,613 | |
Capital shares outstanding | 171,828 | 273,643 | |||
Net asset value and offering price per share | $ | 9.55 | $ | 10.01 | |
CLASS F | |||||
Net Assets | $ | 1,209,770 | $ | 6,813,155 | |
Capital shares outstanding | 126,749 | 681,058 | |||
Net asset value, offering and redemption price per share | $ | 9.54 | $ | 10.00 | |
CLASS I | |||||
Net Assets | $ | 5,908,143 | $ | — | |
Capital shares outstanding | 618,774 | — | |||
Net asset value, offering and redemption price per share | $ | 9.55 | $ | — | |
CLASS Y | |||||
Net Assets | $ | 43,297,684 | $ | 171,994,343 | |
Capital shares outstanding | 4,531,754 | 17,174,156 | |||
Net asset value, offering and redemption price per share | $ | 9.55 | $ | 10.01 |
See accompanying notes to financial statements.
83 | Aquila Municipal Trust
STATEMENT OF ASSETS AND LIABILITIES (continued) SEPTEMBER 30, 2023 (unaudited) |
AQUILA NARRAGANSETT TAX-FREE INCOME FUND | AQUILA TAX-FREE FUND FOR UTAH | ||||
ASSETS | |||||
Investments at value (cost $200,988,887 and $316,065,736 respectively) | $ | 183,952,298 | $ | 296,331,897 | |
Interest receivable | 2,395,254 | 3,862,603 | |||
Receivable for Fund Shares sold | 84,891 | 637,547 | |||
Other assets | 20,464 | 29,955 | |||
Total assets | 186,452,907 | 300,859,002 | |||
LIABILITIES | |||||
Fund shares redeemed | 194,990 | 1,060,120 | |||
Dividends | 153,624 | 71,769 | |||
Management fees | 67,265 | 120,975 | |||
Distribution and service fees payable | 88 | 916 | |||
Other expenses | 78,963 | 136,048 | |||
Total liabilities | 494,930 | 1,389,828 | |||
NET ASSETS | $ | 185,957,977 | $ | 299,469,174 | |
Net Assets consist of: | |||||
Capital Stock – Authorized an unlimited number of shares, par value $0.01 per share | $ | 193,065 | $ | 322,079 | |
Additional paid-in capital | 206,119,426 | 332,584,815 | |||
Total distributable earnings (losses) | (20,354,514) | (33,437,720) | |||
$ | 185,957,977 | $ | 299,469,174 | ||
CLASS A | |||||
Net Assets | $ | 88,808,900 | $ | 153,798,130 | |
Capital shares outstanding | 9,219,327 | 16,563,909 | |||
Net asset value and redemption price per share | $ | 9.63 | $ | 9.29 | |
Maximum offering price per share (100/97 of $9.63 and 100/97 of $9.29, respectively) | $ | 9.93 | $ | 9.58 | |
CLASS C | |||||
Net Assets | $ | 723,063 | $ | 7,472,175 | |
Capital shares outstanding | 75,073 | 804,740 | |||
Net asset value and offering price per share | $ | 9.63 | $ | 9.29 | |
CLASS F | |||||
Net Assets | $ | 4,674,366 | $ | 5,660,723 | |
Capital shares outstanding | 486,429 | 605,776 | |||
Net asset value, offering and redemption price per share | $ | 9.61 | $ | 9.34 | |
CLASS I | |||||
Net Assets | $ | 61,819 | $ | — | |
Capital shares outstanding | 6,412 | — | |||
Net asset value, offering and redemption price per share | $ | 9.64 | $ | — | |
CLASS Y | |||||
Net Assets | $ | 91,689,829 | $ | 132,538,146 | |
Capital shares outstanding | 9,519,228 | 14,233,492 | |||
Net asset value, offering and redemption price per share | $ | 9.63 | $ | 9.31 |
See accompanying notes to financial statements.
84 | Aquila Municipal Trust
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 2023 (unaudited) |
AQUILA TAX-FREE TRUST OF ARIZONA | AQUILA TAX-FREE FUND OF COLORADO | ||||
Investment Income | |||||
Interest income | $ | 3,577,520 | $ | 2,430,290 | |
Expenses | |||||
Investment Adviser fee (note 3) | $ | 405,138 | $ | 410,935 | |
Distribution and service fee (note 3) | 123,501 | 44,753 | |||
Legal fees | 49,148 | 43,074 | |||
Trustees’ fees and expenses (note 7) | 41,700 | 33,137 | |||
Transfer and shareholder servicing agent fees | 34,763 | 41,576 | |||
Auditing and tax fees | 12,735 | 12,384 | |||
Registration fees and dues | 12,528 | 12,072 | |||
Shareholders’ reports | 7,587 | 9,139 | |||
Insurance | 5,443 | 5,059 | |||
Compliance services (note 3) | 5,188 | 5,188 | |||
Custodian fees | 3,038 | 2,762 | |||
Credit facility fees (note 10) | 3,069 | 2,578 | |||
Miscellaneous | 15,406 | 16,409 | |||
Total expenses | 719,244 | 639,066 | |||
Management fee waived and/or reimbursed expenses (note 3) | — | (16,437) | |||
Net expenses | 719,244 | 622,629 | |||
Net investment income | 2,858,276 | 1,807,661 | |||
Realized and Unrealized Gain (Loss) on Investments | |||||
Net realized gain (loss) from securities transactions | (1,876,608) | (2,130,881) | |||
Change in unrealized appreciation (depreciation) on investments | (7,143,837) | (4,176,228) | |||
Net realized and unrealized gain (loss) on investments | (9,020,445) | (6,307,109) | |||
Net change in net assets resulting from operations | $ | (6,162,169) | $ | (4,499,448) |
See accompanying notes to financial statements.
85 | Aquila Municipal Trust
STATEMENT OF OPERATIONS (continued) SIX MONTHS ENDED SEPTEMBER 30, 2023 (unaudited) |
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY | AQUILA TAX-FREE TRUST OF OREGON | ||||
Investment Income | |||||
Interest income | $ | 2,598,223 | $ | 6,059,016 | |
Expenses | |||||
Investment Adviser fee (note 3) | $ | 328,599 | $ | 920,523 | |
Distribution and service fee (note 3) | 95,454 | 223,805 | |||
Legal fees | 38,986 | 97,768 | |||
Trustees’ fees and expenses (note 7) | 32,146 | 76,449 | |||
Transfer and shareholder servicing agent fees | 40,647 | 97,073 | |||
Fund accounting fees | 30,881 | — | |||
Auditing and tax fees | 12,083 | 17,197 | |||
Registration fees and dues | 15,674 | 24,247 | |||
Shareholders’ reports | 7,579 | 15,377 | |||
Insurance | 4,152 | 12,464 | |||
Compliance services (note 3) | 5,188 | 5,188 | |||
Custodian fees | 2,489 | 8,174 | |||
Credit facility fees (note 10) | 2,485 | 7,005 | |||
Miscellaneous | 10,068 | 20,334 | |||
Total expenses | 626,431 | 1,525,604 | |||
Management fee waived and/or reimbursed expenses (note 3) | — | (6,026) | |||
Net expenses | 626,431 | 1,519,578 | |||
Net investment income | 1,971,792 | 4,539,438 | |||
Realized and Unrealized Gain (Loss) on Investments | |||||
Net realized gain (loss) from securities transactions | (220,247) | (3,228,921) | |||
Change in unrealized appreciation (depreciation) on investments | (7,519,088) | (15,692,830) | |||
Net realized and unrealized gain (loss) on investments | (7,739,335) | (18,921,751) | |||
Net change in net assets resulting from operations | $ | (5,767,543) | $ | (14,382,313) |
See accompanying notes to financial statements.
86 | Aquila Municipal Trust
STATEMENT OF OPERATIONS (continued) SIX MONTHS ENDED SEPTEMBER 30, 2023 (unaudited) |
AQUILA NARRAGANSETT TAX-FREE INCOME FUND | AQUILA TAX-FREE FUND FOR UTAH | ||||
Investment Income | |||||
Interest income | $ | 2,849,601 | $ | 4,924,268 | |
Expenses | |||||
Investment Adviser fee (note 3) | $ | 496,213 | $ | 799,991 | |
Distribution and service fee (note 3) | 75,952 | 214,766 | |||
Legal fees | 42,217 | 67,568 | |||
Trustees’ fees and expenses (note 7) | 40,039 | 61,442 | |||
Transfer and shareholder servicing agent fees | 52,913 | 80,789 | |||
Fund accounting fees | 31,288 | 42,541 | |||
Auditing and tax fees | 12,750 | 14,900 | |||
Registration fees and dues | 18,481 | 21,141 | |||
Shareholders’ reports | 8,107 | 10,442 | |||
Insurance | 5,548 | 9,269 | |||
Compliance services (note 3) | 5,188 | 5,181 | |||
Custodian fees | 3,301 | 7,022 | |||
Credit facility fees (note 10) | 3,032 | 4,887 | |||
Miscellaneous | 6,875 | 8,994 | |||
Total expenses | 801,904 | 1,348,933 | |||
Management fee waived and/or reimbursed expenses (note 3) | (71,985) | (32,000) | |||
Net expenses | 729,919 | 1,316,933 | |||
Net investment income | 2,119,682 | 3,607,335 | |||
Realized and Unrealized Gain (Loss) on Investments | |||||
Net realized gain (loss) from securities transactions | (523,742) | (2,154,025) | |||
Change in unrealized appreciation (depreciation) on investments | (9,625,483) | (12,417,481) | |||
Net realized and unrealized gain (loss) on investments | (10,149,225) | (14,571,506) | |||
Net change in net assets resulting from operations | $ | (8,029,543) | $ | (10,964,171) |
See accompanying notes to financial statements.
87 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF ARIZONA STATEMENT OF CHANGES IN NET ASSETS |
Six Months Ended September 30, 2023 (unaudited) | Year Ended March 31, 2023 | |||||
OPERATIONS: | ||||||
Net investment income | $ | 2,858,276 | $ | 4,976,679 | ||
Net realized gain (loss) from securities transactions | (1,876,608) | (3,676,604) | ||||
Change in unrealized appreciation (depreciation) on investments | (7,143,837) | (2,909,244) | ||||
Change in net assets resulting from operations | (6,162,169) | (1,609,169) | ||||
DISTRIBUTIONS TO SHAREHOLDERS (note 9): | ||||||
Class A Shares | (2,092,449) | (3,896,889) | ||||
Class C Shares | (20,000) | (50,696) | ||||
Class Y Shares | (728,113) | (1,358,255) | ||||
Change in net assets from distributions | (2,840,562) | (5,305,840) | ||||
CAPITAL SHARE TRANSACTIONS (note 7): | ||||||
Proceeds from shares sold | 11,434,733 | 33,976,090 | ||||
Reinvested dividends and distributions | 2,318,807 | 4,330,637 | ||||
Cost of shares redeemed | (18,424,211) | (74,444,593) | ||||
Change in net assets from capital share transactions | (4,670,671) | (36,137,866) | ||||
Change in net assets | (13,673,402) | (43,052,875) | ||||
NET ASSETS: | ||||||
Beginning of period | 205,374,751 | 248,427,626 | ||||
End of period | $ | 191,701,349 | $ | 205,374,751 |
See accompanying notes to financial statements.
88 | Aquila Municipal Trust
AQUILA TAX-FREE FUND OF COLORADO STATEMENT OF CHANGES IN NET ASSETS |
Six Months Ended September 30, 2023 (unaudited) | Year Ended March 31, 2023 | |||||
OPERATIONS: | ||||||
Net investment income | $ | 1,807,661 | $ | 3,710,206 | ||
Net realized gain (loss) from securities transactions | (2,130,881) | (4,666,444) | ||||
Change in unrealized appreciation (depreciation) on investments | (4,176,228) | 1,413,051 | ||||
Change in net assets resulting from operations | (4,499,448) | 456,813 | ||||
DISTRIBUTIONS TO SHAREHOLDERS (note 9): | ||||||
Class A Shares | (1,354,505) | (2,623,775) | ||||
Class C Shares | (13,334) | (28,309) | ||||
Class Y Shares | (436,872) | (1,069,251) | ||||
Change in net assets from distributions | (1,804,711) | (3,721,335) | ||||
CAPITAL SHARE TRANSACTIONS (note 7): | ||||||
Proceeds from shares sold | 4,681,084 | 26,684,830 | ||||
Reinvested dividends and distributions | 1,521,350 | 3,065,148 | ||||
Cost of shares redeemed | (29,330,776) | (84,590,202) | ||||
Change in net assets from capital share transactions | (23,128,342) | (54,840,224) | ||||
Change in net assets | (29,432,501) | (58,104,746) | ||||
NET ASSETS: | ||||||
Beginning of period | 177,019,969 | 235,124,715 | ||||
End of period | $ | 147,587,468 | $ | 177,019,969 |
See accompanying notes to financial statements.
89 | Aquila Municipal Trust
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY STATEMENT OF CHANGES IN NET ASSETS |
Six Months Ended September 30, 2023 (unaudited) | Year Ended March 31, 2023 | |||||
OPERATIONS: | ||||||
Net investment income | $ | 1,971,792 | $ | 3,856,439 | ||
Net realized gain (loss) from securities transactions | (220,247) | (694,653) | ||||
Change in unrealized appreciation (depreciation) on investments | (7,519,088) | (3,502,698) | ||||
Change in net assets resulting from operations | (5,767,543) | (340,912) | ||||
DISTRIBUTIONS TO SHAREHOLDERS (note 9): | ||||||
Class A Shares | (1,313,799) | (2,670,642) | ||||
Class C Shares | (14,258) | (42,566) | ||||
Class F Shares | (9,510) | (320) | ||||
Class I Shares | (67,694) | (133,166) | ||||
Class Y Shares | (566,505) | (1,094,253) | ||||
Change in net assets from distributions | (1,971,766) | (3,940,947) | ||||
CAPITAL SHARE TRANSACTIONS (note 7): | ||||||
Proceeds from shares sold | 9,415,125 | 25,370,047 | ||||
Reinvested dividends and distributions | 1,636,144 | 3,233,465 | ||||
Cost of shares redeemed | (13,358,232) | (36,245,727) | ||||
Change in net assets from capital share transactions | (2,306,963) | (7,642,215) | ||||
Change in net assets | (10,046,272) | (11,924,074) | ||||
NET ASSETS: | ||||||
Beginning of period | 166,981,826 | 178,905,900 | ||||
End of period | $ | 156,935,554 | $ | 166,981,826 |
See accompanying notes to financial statements.
90 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON STATEMENT OF CHANGES IN NET ASSETS |
Six Months Ended September 30, 2023 (unaudited) | Year Ended March 31, 2023 | |||||
OPERATIONS: | ||||||
Net investment income | $ | 4,539,438 | $ | 8,801,545 | ||
Net realized gain (loss) from securities transactions | (3,228,921) | (11,452,662) | ||||
Change in unrealized appreciation (depreciation) on investments | (15,692,830) | 3,987,362 | ||||
Change in net assets resulting from operations | (14,382,313) | 1,336,245 | ||||
DISTRIBUTIONS TO SHAREHOLDERS (note 9): | ||||||
Class A Shares | (2,662,987) | (5,506,085) | ||||
Class C Shares | (16,584) | (45,501) | ||||
Class F Shares | (69,033) | (108,260) | ||||
Class Y Shares | (1,790,822) | (3,452,942) | ||||
Change in net assets from distributions | (4,539,426) | (9,112,788) | ||||
CAPITAL SHARE TRANSACTIONS (note 7): | ||||||
Proceeds from shares sold | 36,124,342 | 127,872,332 | ||||
Reinvested dividends and distributions | 3,544,831 | 7,379,661 | ||||
Cost of shares redeemed | (54,318,343) | (246,482,295) | ||||
Change in net assets from capital share transactions | (14,649,170) | (111,230,302) | ||||
Change in net assets | (33,570,909) | (119,006,845) | ||||
NET ASSETS: | ||||||
Beginning of period | 472,675,469 | 591,682,314 | ||||
End of period | $ | 439,104,560 | $ | 472,675,469 |
See accompanying notes to financial statements.
91 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND STATEMENT OF CHANGES IN NET ASSETS |
Six Months Ended September 30, 2023 (unaudited) | Year Ended March 31, 2023 | |||||
OPERATIONS: | ||||||
Net investment income | $ | 2,119,682 | $ | 4,519,408 | ||
Net realized gain (loss) from securities transactions | (523,742) | (2,114,164) | ||||
Change in unrealized appreciation (depreciation) on investments | (9,625,483) | (3,496,724) | ||||
Change in net assets resulting from operations | (8,029,543) | (1,091,480) | ||||
DISTRIBUTIONS TO SHAREHOLDERS (note 9): | ||||||
Class A Shares | (981,487) | (2,102,435) | ||||
Class C Shares | (5,545) | (15,432) | ||||
Class F Shares | (57,092) | (110,116) | ||||
Class I Shares | (645) | (4,572) | ||||
Class Y Shares | (1,074,786) | (2,343,792) | ||||
Change in net assets from distributions | (2,119,555) | (4,576,347) | ||||
CAPITAL SHARE TRANSACTIONS (note 7): | ||||||
Proceeds from shares sold | 8,085,957 | 28,565,369 | ||||
Reinvested dividends and distributions | 1,168,690 | 2,491,490 | ||||
Cost of shares redeemed | (19,139,076) | (68,738,739) | ||||
Change in net assets from capital share transactions | (9,884,429) | (37,681,880) | ||||
Change in net assets | (20,033,527) | (43,349,707) | ||||
NET ASSETS: | ||||||
Beginning of period | 205,991,504 | 249,341,211 | ||||
End of period | $ | 185,957,977 | $ | 205,991,504 |
See accompanying notes to financial statements.
92 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH STATEMENT OF CHANGES IN NET ASSETS |
Six Months Ended September 30, 2023 (unaudited) | Year Ended March 31, 2023 | |||||
OPERATIONS: | ||||||
Net investment income | $ | 3,607,335 | $ | 7,893,755 | ||
Net realized gain (loss) from securities transactions | (2,154,025) | (6,769,413) | ||||
Change in unrealized appreciation (depreciation) on investments | (12,417,481) | (3,703,981) | ||||
Change in net assets resulting from operations | (10,964,171) | (2,579,639) | ||||
DISTRIBUTIONS TO SHAREHOLDERS (note 9): | ||||||
Class A Shares | (1,860,459) | (4,194,934) | ||||
Class C Shares | (61,757) | (161,045) | ||||
Class F Shares | (71,328) | (204,897) | ||||
Class Y Shares | (1,612,303) | (3,563,470) | ||||
Change in net assets from distributions | (3,605,847) | (8,124,346) | ||||
CAPITAL SHARE TRANSACTIONS (note 7): | ||||||
Proceeds from shares sold | 21,500,601 | 84,684,805 | ||||
Reinvested dividends and distributions | 3,060,903 | 7,002,338 | ||||
Cost of shares redeemed | (42,351,691) | (186,239,548) | ||||
Change in net assets from capital share transactions | (17,790,187) | (94,552,405) | ||||
Change in net assets | (32,360,205) | (105,256,390) | ||||
NET ASSETS: | ||||||
Beginning of period | 331,829,379 | 437,085,769 | ||||
End of period | $ | 299,469,174 | $ | 331,829,379 |
See accompanying notes to financial statements.
93 | Aquila Municipal Trust
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 (unaudited) |
1. Organization
Aquila Municipal Trust is a Massachusetts business trust formed in 1986. Prior to April 10, 2013, the Trust was named Tax-Free Trust of Arizona. Aquila Tax-Free Trust of Arizona, Aquila Tax-Free Fund of Colorado, Aquila Churchill Tax-Free Fund of Kentucky, Aquila Tax-Free Trust of Oregon, Aquila Narragansett Tax-Free Income Fund and Aquila Tax-Free Fund For Utah (each, a “Fund”) are series of Aquila Municipal Trust. Each Fund is an open-end, non-diversified management investment company.
Prior to October 11, 2013, Aquila Tax-Free Trust of Arizona was known as Tax-Free Trust of Arizona. Each of Aquila Tax-Free Fund of Colorado, Aquila Churchill Tax-Free Fund of Kentucky, Aquila Tax-Free Trust of Oregon, Aquila Narragansett Tax-Free Income Fund and Aquila Tax-Free Fund For Utah (each, a “Successor Fund”) is a series of Aquila Municipal Trust. Each Successor Fund was established in connection with the reorganization into the Fund of a fund with identical investment objectives and principal investment strategies as the Successor Fund (each, a “Predecessor Fund”) (each, a “Reorganization”), as follows:
Predecessor Fund | Successor Fund | Date of Reorganization |
Tax-Free Trust of Arizona | Aquila Tax-Free Trust of Arizona | October 11, 2013 |
Tax-Free Fund of Colorado | Aquila Tax-Free Fund of Colorado | October 11, 2013 |
Churchill Tax-Free Fund of Kentucky, a series of Churchill Tax Free Trust | Aquila Churchill Tax-Free Fund of Kentucky | October 11, 2013 |
Aquila Tax-Free Trust of Oregon, a series of The Cascades Trust | Aquila Tax-Free Trust of Oregon | June 26, 2020 |
Aquila Narragansett Tax-Free Income Fund | Aquila Narragansett Tax-Free Income Fund | October 11, 2013 |
Tax-Free Fund For Utah | Aquila Tax-Free Fund For Utah | October 11, 2013 |
Accordingly, the reorganizations, which were tax-free exchanges, had no effect on the respective Fund’s operations. All Funds are authorized to issue an unlimited number of shares. The reorganizations were accomplished by exchanging the assets and liabilities of the predecessor funds for shares of the successor Funds. Shareowners holding shares of the predecessor funds received corresponding shares of the successor Funds in a one-to-one exchange ratio in each reorganization.
Class A Shares are offered to investors at net asset value plus a sales charge, paid at the time of purchase, at the maximum rate of 3.0% of the public offering price, with lower rates for larger purchases including previous purchases of shares of any class of any of the funds in the Aquila Group of Funds. There is no sales charge on purchases of $250,000 or more, but redemptions of shares so purchased are generally subject to a contingent deferred sales charge (“CDSC”). Class A Shares of Aquila Tax-Free Trust of Arizona, Aquila Churchill Tax-Free Fund of Kentucky, Aquila Tax-Free Trust of Oregon and Aquila
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Narragansett Tax-Free Income Fund are subject to a fee under the Fund’s Distribution Plan at the rate of up to 0.15 of 1% of the average annual net assets represented by the Class A Shares. Class A Shares of Aquila Tax-Free Fund of Colorado are subject to a fee under the Fund’s Distribution Plan at the rate of up to 0.15 of 1% (currently 0.075 of 1%) of the average annual net assets represented by the Class A Shares. Class A Shares of Aquila Tax-Free Fund For Utah are subject to a fee under the Fund’s Distribution Plan at the rate of 0.20 of 1% of the average annual net assets represented by the Class A Shares.
Class C Shares are offered to investors at net asset value with no sales charge payable at the time of purchase but with a level charge for service and distribution fees for six years after the date of purchase at the aggregate annual rate of 1% of the average annual net assets of the Class C Shares of each Fund. Six years after the date of purchase, Class C Shares are automatically converted to Class A Shares. If you redeem Class C Shares before you have held them for 12 months from the date of purchase you will pay a CDSC; this charge is 1%, calculated on the net asset value of the Class C Shares at the time of purchase or at redemption, whichever is less. There is no CDSC after Class C Shares have been held beyond the applicable period. For purposes of applying the CDSC and determining the time of conversion, the 12-month and six-year holding periods are considered modified by up to one month depending upon when during a month your purchase of such shares is made. Class C Shares are subject to a fee under each Fund’s Distribution Plan at the rate of 0.75 of 1% of the average annual net assets represented by the Class C Shares and a service fee of 0.25 of 1% of such assets.
Class F Shares (Aquila Churchill Tax-Free Fund of Kentucky, Aquila Tax-Free Trust of Oregon, Aquila Narragansett Tax-Free Income Fund and Aquila Tax-Free Fund For Utah only) are offered and sold only through financial intermediaries with which the Distributor has entered into sales agreements, and are not offered directly to retail customers. Class F Shares are offered at net asset value with no sales charge, no contingent deferred sales charge, and no distribution fee.
Class I Shares (Aquila Churchill Tax-Free Fund of Kentucky and Aquila Narragansett Tax-Free Income Fund only) are offered and sold only through financial intermediaries with which Aquila Distributors LLC has entered into sales agreements, and are not offered directly to retail customers. Class I Shares of each Fund are offered at net asset value with no sales charge and no redemption fee or contingent deferred sales charge, although a financial intermediary may charge a fee for effecting a purchase or other transaction on behalf of its customers. Class I Shares may carry a distribution fee of up to 0.25 of 1% of average annual net assets allocable to Class I Shares. A distribution fee of up to 0.15 of 1% of such net assets is currently authorized by the Board of Trustees of each Fund. In addition, Class I Shares of each Fund may pay a service fee of up to 0.25 of 1% of such assets.
Class Y Shares are offered and sold only through institutions acting for investors in a fiduciary, advisory, agency, custodial or similar capacity, and are not offered directly to retail customers. Class Y Shares of each Fund are offered at net asset value with no sales charge, no redemption fee, no contingent deferred sales charge and no distribution fee.
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All classes of shares represent interests in the same portfolio of investments and are identical as to rights and privileges but differ with respect to the effect of sales charges, the distribution and/or service fees borne by each class, expenses specific to each class, voting rights on matters affecting a single class and the exchange privileges of each class.
2. Significant Accounting Policies
The following is a summary of significant accounting policies 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 of America for investment companies.
a) | Portfolio valuation: Municipal securities are valued each business day based upon information provided by a nationally prominent independent pricing service and periodically verified through other pricing services. In the case of securities for which market quotations are readily available, securities are valued by the pricing service at the mean of bid and ask quotations. If a market quotation or a valuation from the pricing service is not readily available, the security is valued using other fair value methods. Rule 2a-5 under the 1940 Act provides that in the event that market quotations are not readily available, such securities must be valued at their fair value as determined in good faith by each Fund’s Board of Trustees. Rule 2a-5 further provides that the Board may choose to designate a “valuation designee” to perform the fair value determination. The Aquila Municipal Trust Board has designated Aquila Investment Management LLC as the valuation designee (the “Valuation Designee”) to determine the fair value of Fund securities in good faith. Aquila Investment Management LLC as Valuation Designee, selects an appropriate methodology or methodologies for determining and calculating the fair value of the Funds’ investments and applies such methodology or methodologies in a consistent manner, including specifying the key inputs and assumptions specific to each asset class or portfolio holding. |
b) | Fair value measurements: The Funds follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds’ investments and are summarized in the following fair value hierarchy: |
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Funds’ own assumptions about the assumptions a market participant would use in valuing the asset or liability, based on the best information available.
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The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of the valuation inputs, representing 100% of the Funds’ investments, used to value the Funds’ net assets as of September 30, 2023:
Valuation Inputs | AQUILA TAX-FREE TRUST OF ARIZONA | AQUILA TAX-FREE FUND OF COLORADO | ||||
Investments in Securities* | ||||||
Level 1 – Quoted Prices – Common Stocks, Mutual Funds, and Short-Term Investments | $ | 9,281,010 | $ | 2,642,817 | ||
Level 2 – Other Significant Observable Inputs | 180,576,995 | 146,046,589 | ||||
Level 3 – Significant Unobservable Inputs | — | — | ||||
Total | $ | 189,858,005 | $ | 148,689,406 |
Valuation Inputs | AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY | AQUILA TAX-FREE TRUST OF OREGON | ||||
Investments in Securities* | ||||||
Level 1 – Quoted Prices – Common Stocks, Mutual Funds, and Short-Term Investments | $ | 849,850 | $ | 4,312,305 | ||
Level 2 – Other Significant Observable Inputs | 155,961,747 | 428,984,295 | ||||
Level 3 – Significant Unobservable Inputs | — | — | ||||
Total | $ | 156,811,597 | $ | 433,296,600 |
Valuation Inputs | AQUILA NARRAGANSETT TAX-FREE INCOME FUND | AQUILA TAX-FREE FUND FOR UTAH | ||||
Investments in Securities* | ||||||
Level 1 – Quoted Prices – Common Stocks, Mutual Funds, and Short-Term Investments | $ | 1,069,873 | $ | 9,473,119 | ||
Level 2 – Other Significant Observable Inputs | 182,882,425 | 286,858,778 | ||||
Level 3 – Significant Unobservable Inputs | — | — | ||||
Total | $ | 183,952,298 | $ | 296,331,897 |
* See schedule of investments for a detailed listing of securities.
c) | Subsequent events: In preparing these financial statements, the Funds have evaluated events and transactions for potential recognition or disclosure through the date these financial statements were issued. |
d) | Securities transactions and related investment income: Securities transactions are recorded on the trade date. Realized gains and losses from securities transactions are reported on the identified cost basis. Interest income is recorded daily on the accrual basis and is adjusted for amortization of premium and accretion of original issue and market discount. |
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e) | Federal income taxes: It is the policy of the Funds to continue to qualify as a regulated investment companies by complying with the provisions of the Internal Revenue Code applicable to certain investment companies. The Funds intends to make distributions of income and securities profits sufficient to relieve them from all, or substantially all, Federal income and excise taxes. |
Management has reviewed the tax positions for each of the open tax years (2020 – 2022) or expected to be taken in the Funds’ 2023 tax returns and has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements.
f) | Multiple Class Allocations: All income, expenses (other than class-specific expenses), and realized and unrealized gains or losses are allocated daily to each class of shares based on the relative net assets of each class. Class-specific expenses, which include distribution and service fees and any other items that are specifically attributed to a particular class, are also charged directly to such class on a daily basis. |
g) | Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. |
h) | Reclassification of capital accounts: Accounting principles generally accepted in the United States of America require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. |
For the year ended March 31, 2023,
· | Aquila Tax-Free Trust of Arizona decreased paid-in capital by $237,212 and increased distributable earnings by $237,212; |
· | Aquila Tax-Free Fund of Colorado decreased paid-in capital by $21,177 and increased distributable earnings by $21,177. |
· | There were no other reclassifications with respect to the other four Funds. |
These reclassifications had no effect on net assets or net asset value per share.
i) | Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 “Financial Services-Investment Companies”. |
3. Fees and Related Party Transactions
a) | Management Arrangements: |
Aquila Investment Management LLC (the “Manager”), a wholly-owned subsidiary of Aquila Management Corporation, the Funds’ founder and sponsor, serves as the Manager
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for the Funds an Advisory and Administration Agreements with each of the respective Funds. Under the Advisory and Administration Agreements, the Manager provides all investment management (except with respect to Aquila Narragansett Tax-Free Income Fund) and administrative services to the Funds. The Manager’s services include providing the office of the Funds and all related services as well as managing relationships with all the various support organizations to the Funds such as the transfer and shareholder servicing agent, custodian, legal counsel, fund accounting agent, auditors and distributor.
For its services, for each Fund, the Manager is entitled to receive fees which are payable monthly and computed as of the close of business each day at the annual rate on the Fund’s net assets as follows:
Fund | Annual Rate |
Aquila Tax-Free Trust of Arizona | 0.40% |
Aquila Tax-Free Fund of Colorado | 0.50% |
Aquila Churchill Tax-Free Fund of Kentucky | 0.40% |
Aquila Tax-Free Trust of Oregon | 0.40% |
Aquila Narragansett Tax-Free Income Fund | 0.50% |
Aquila Tax-Free Fund For Utah | 0.50% |
With respect to Aquila Narragansett Tax-Free Income Fund only, Clarfeld Financial Advisors, LLC, a wholly-owned subsidiary of Citizens Bank, N.A. (the “Sub-Adviser”), serves as the Investment Sub-Adviser for the Fund under a Sub-Advisory Agreement between the Manager and the Sub-Adviser. Under this agreement, the Sub-Adviser continuously provides, subject to oversight of the Manager and the Board of Trustees of the Fund, the investment program of the Fund and the composition of its portfolio, arranges for the purchases and sales of portfolio securities, and provides for daily pricing of the Fund’s portfolio.
Aquila Tax-Free Fund of Colorado
The Manager has contractually agreed to waive fees through September 30, 2024 as follows: the annual rate shall be equivalent to 0.48% of net assets of the Fund up to $400 million; 0.46% of the Fund’s net assets above that amount to $1 billion and 0.44% of the Fund’s net assets above $1 billion. The Manager may not terminate the arrangement without the approval of the Board of Trustees. For the six months ended September 30, 2023, the Fund incurred management fees of $410,935 of which $16,437 was waived under the contractual fee waiver.
Aquila Tax-Free Trust of Oregon
The Manager has contractually agreed to waive its fees through September 30, 2024 as follows: the annual rate shall be equivalent to 0.40% of net assets of the Fund up to $400 million; 0.38% of the Fund’s net assets above that amount to $1 billion and 0.36%
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of the Fund’s net assets above $1 billion. The Manager may not terminate the arrangement without the approval of the Board of Trustees. For the six months ended September 30, 2023, the Fund incurred management fees of $920,523 of which $6,026 was waived.
Aquila Narragansett Tax-Free Income Fund
The Manager has contractually undertaken to waive its fees so that management fees are equivalent to 0.48 of 1% of net assets of the Fund up to $400,000,000; 0.46 of 1% of net assets above $400,000,000 up to $1,000,000,000; and 0.44 of 1% of net assets above $1,000,000,000. This contractual undertaking is in effect until September 30, 2024. The Manager may not terminate the arrangement without the approval of the Board of Trustees. For the six months ended September 30, 2023, the Fund incurred management fees of $496,213 of which $71,985 was waived, which included supplemental fee waivers of $52,137 above and beyond the contractual expense cap. These waivers are not reimbursable.
For the six months ended September 30, 2023, the Sub-Adviser was entitled to receive a fee at the annual rate of 0.23 of 1% of the Fund’s Average annual net assets. The Sub-Adviser has contractually undertaken to waive its fees through September 30, 2024 to the extent necessary so that the annual sub-advisory fee rate is equivalent to 0.175% of 1% of the Fund’s average annual assets.
Aquila Tax-Free Fund For Utah
The Manager has contractually undertaken to waive its fees so that management fees are equivalent to 0.48 of 1% of net assets of the Fund up to $400,000,000; 0.46 of 1% of net assets above $400,000,000 up to $1,000,000,000; and 0.44 of 1% of net assets above $1,000,000,000. This contractual undertaking is currently in effect until September 30, 2024. The Manager may not terminate the arrangement without the approval of the Board of Trustees. For the six months ended September 30, 2023, the Fund incurred management fees of $799,991 of which $32,000 was waived.
Under Compliance Agreements with the Manager, the Manager is compensated by each Fund for compliance related services provided to enable the Funds to comply with Rule 38a-1 of the Investment Company Act of 1940, as amended (the “1940 Act”).
Specific details as to the nature and extent of the services provided by the Manager are more fully defined in the Funds’ Prospectus and Statement of Additional Information.
b) | Distribution and Service Fees: |
The Funds have adopted Distribution Plans (each, a “Plan”) pursuant to Rule 12b-1 (the “Rule”) under the 1940 Act. Under one part of each Plan, with respect to Class A Shares, the Fund is authorized to make distribution fee payments to broker-dealers or others (“Qualified Recipients”) selected by Aquila Distributors LLC (the “Distributor”) including, but not limited to, any principal underwriter of the Fund, with which the Distributor has entered into written agreements contemplated by the Rule and which have rendered assistance in the distribution and/or retention of the Fund’s shares or servicing of shareholder accounts.
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For the six months ended September 30, 2023, these payments were as follows:
Fund | Annual Distribution Fee Rate on Class A | Distribution Fees on Class A | Amount Retained by Distributor | ||||||
Aquila Tax-Free Trust of Arizona | 0.15% | $ | 113,061 | $ | 12,597 | ||||
Aquila Tax-Free Fund of Colorado | 0.075% | $ | 34,025 | $ | 2,749 | ||||
Aquila Churchill Tax-Free Fund of Kentucky | 0.15% | $ | 83,012 | $ | 4,836 | ||||
Aquila Tax-Free Trust of Oregon | 0.15% | $ | 208,235 | $ | 10,888 | ||||
Aquila Narragansett Tax-Free Income Fund | 0.15% | $ | 71,327 | $ | 5,402 | ||||
Aquila Tax-Free Fund For Utah | 0.20% | $ | 170,123 | $ | 5,429 |
Under another part of each Plan, the Fund is authorized to make payments with respect to Class C Shares to Qualified Recipients which have rendered assistance in the distribution and/or retention of the Fund’s Class C shares or servicing of shareholder accounts. These payments are made at the annual rate of 0.75% of the Fund’s average net assets represented by Class C Shares. In addition, under a Shareholder Services Plan, each Fund is authorized to make service fee payments with respect to Class C Shares to Qualified Recipients for providing personal services and/or maintenance of shareholder accounts.
For the six months ended September 30, 2023, these payments were as follows:
Fund | Qualified Recipients Fees on Class C | Shareholder Services Fee on Class C | Amount Retained by Distributor | |||||||
Aquila Tax-Free Trust of Arizona | $ | 7,830 | $ | 2,610 | $ | 2,589 | ||||
Aquila Tax-Free Fund of Colorado | $ | 8,046 | $ | 2,682 | $ | 2,663 | ||||
Aquila Churchill Tax-Free Fund of Kentucky | $ | 7,040 | $ | 2,347 | $ | 2,763 | ||||
Aquila Tax-Free Trust of Oregon | $ | 11,678 | $ | 3,892 | $ | 4,562 | ||||
Aquila Narragansett Tax-Free Income Fund | $ | 3,443 | $ | 1,148 | $ | 1,328 | ||||
Aquila Tax-Free Fund For Utah | $ | 33,482 | $ | 11,161 | $ | 11,087 |
With respect to Aquila Churchill Tax-Free Fund of Kentucky and Aquila Narragansett Tax-Free Income Fund, only under another part of the Plan, the Funds are authorized to make payments with respect to Class I Shares to Qualified Recipients. Class I payments, under the Plan, may not exceed for any fiscal year of the Fund a rate (currently 0.10%), set from time to time by the Board of Trustees, of not more than 0.25% of the average annual net assets represented by the Class I Shares. In addition, Class I has a Shareholder Services Plan under which it may pay service fees (currently 0.25%) of not more than 0.25% of the average annual net assets represented by Class I Shares. That is, the total payments under both plans will not exceed 0.50% of such net assets at the present time.
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NOTES TO FINANCIAL STATEMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Aquila Churchill Tax-Free Fund of Kentucky
For the six months ended September 30, 2023, these payments were made at the average annual rate of 0.35% of such net assets and amounted to $10,692 of which $3,055 related to the Plan and $7,637 related to the Shareholder Services Plan.
Aquila Narragansett Tax-Free Income Fund
For the six months ended September 30, 2023, these payments were made at the average annual rate of 0.35% of such net assets and amounted to $118 of which $34 related to the Plan and $84 related to the Shareholder Services Plan.
Specific details about the Plans are more fully defined in the Funds’ Prospectus and Statement of Additional Information.
Under Distribution Agreements, the Distributor serves as the exclusive distributor of each Fund’s shares. Through agreements between the Distributor and various brokerage and advisory firms (“financial intermediaries”), the Fund’s shares are sold primarily through the facilities of these financial intermediaries having offices within the respective states of the various funds, with the bulk of any sales commissions inuring to such financial intermediaries.
For the six months ended September 30, 2023, these payments were as follows:
Fund | Total Commissions on Sale of Class A Shares | Received by Distributor | |||||
Aquila Tax-Free Trust of Arizona | $ | 6,347 | $ | 1,573 | |||
Aquila Tax-Free Fund of Colorado | $ | 4,823 | $ | 2,656 | |||
Aquila Churchill Tax-Free Fund of Kentucky | $ | 10,796 | $ | 2,244 | |||
Aquila Tax-Free Trust of Oregon | $ | 7,043 | $ | 3,611 | |||
Aquila Narragansett Tax-Free Income Fund | $ | 10,387 | $ | 2,480 | |||
Aquila Tax-Free Fund For Utah | $ | 11,785 | $ | 2,852 |
c) | Transfer and shareholder servicing fees: |
The Funds occasionally compensate financial intermediaries in connection with the sub-transfer agency related services provided by such entities in connection with their respective Fund shareholders so long as the fees are deemed by the Board of Trustees to be reasonable in relation to (i) the value of the services and the benefits received by the Fund and certain shareholders; and (ii) the payments that the Fund would make to another entity to perform similar ongoing services to existing shareholders.
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4. Purchases and Sales of Securities
During the six months ended September 30, 2023:
Fund | Purchases of Securities | Proceeds from the Sales of Securities (excluding short- term Investments) | |||||
Aquila Tax-Free Trust of Arizona | $ | 65,979,759 | $ | 59,403,250 | |||
Aquila Tax-Free Fund of Colorado | $ | 23,614,331 | $ | 42,815,558 | |||
Aquila Churchill Tax-Free Fund of Kentucky | $ | 14,581,427 | $ | 14,419,228 | |||
Aquila Tax-Free Trust of Oregon | $ | 42,417,137 | $ | 52,742,056 | |||
Aquila Narragansett Tax-Free Income Fund | $ | 9,535,052 | $ | 16,681,306 | |||
Aquila Tax-Free Fund For Utah | $ | 18,362,648 | $ | 38,086,620 |
As of September 30, 2023, the tax cost of investments and the breakdown of unrealized appreciation (depreciation) for each Fund was as follows:
Fund | Tax Cost of Investments | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation/ (Depreciation) | ||||
Aquila Tax-Free Trust of Arizona | $ | 200,579,334 | $ | 523,213 | $ | (11,244,542) | $ | (10,721,329) |
Aquila Tax-Free Fund of Colorado | $ | 153,400,939 | $ | 84,200 | $ | (4,795,733) | $ | (4,711,533) |
Aquila Churchill Tax-Free Fund of Kentucky | $ | 169,884,728 | $ | 17,822 | $ | (13,090,953) | $ | (13,073,131) |
Aquila Tax-Free Trust of Oregon | $ | 452,775,449 | $ | 3,812 | $ | (19,482,661) | $ | (19,478,849) |
Aquila Narragansett Tax-Free Income Fund | $ | 200,988,887 | $ | 13,824 | $ | (17,050,413) | $ | (17,036,589) |
Aquila Tax-Free Fund For Utah | $ | 316,065,736 | $ | 132,363 | $ | (19,866,202) | $ | (19,733,839) |
5. Portfolio Orientation
Aquila Tax-Free Trust of Arizona
Since the Fund invests principally and may invest entirely in double tax-free municipal obligations of issuers within Arizona, it is subject to possible risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Arizona and whatever effects these may have upon Arizona issuers’ ability to meet their obligations. The Fund is also permitted to invest in U.S. territorial municipal obligations meeting comparable quality standards and providing income which is exempt from both regular Federal and Arizona income taxes. The general policy of the Fund is to invest in such securities only when comparable securities of Arizona issuers are not available in the market. At September 30, 2023, the Fund had all of its long-term portfolio holdings invested in the securities of Arizona issuers.
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Aquila Tax-Free Fund of Colorado
Since the Fund invests principally and may invest entirely in double tax-free municipal obligations of issuers within Colorado, it is subject to possible risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Colorado and whatever effects these may have upon Colorado issuers’ ability to meet their obligations. The Fund is also permitted to invest in U.S. territorial municipal obligations meeting comparable quality standards and providing income which is exempt from both regular Federal and Colorado income taxes. At September 30, 2023, the Fund had all of its long-term portfolio holdings invested in the securities of Colorado issuers.
Aquila Churchill Tax-Free Fund of Kentucky
Since the Fund invests principally and may invest entirely in double tax-free municipal obligations of issuers within Kentucky, it is subject to possible risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Kentucky and whatever effects these may have upon Kentucky issuers’ ability to meet their obligations. The Fund is also permitted to invest in U.S. territorial municipal obligations meeting comparable quality standards and providing income which is exempt from both regular Federal and Kentucky income taxes. At September 30, 2023, the Fund had all of its long-term portfolio holdings invested in municipal obligations of issuers within Kentucky.
Aquila Tax-Free Trust of Oregon
Since the Fund invests principally and may invest entirely in double tax-free municipal obligations of issuers within Oregon, it is subject to possible risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Oregon and whatever effects these may have upon Oregon issuers’ ability to meet their obligations. For example, Measure 5, a 1990 amendment to the Oregon Constitution, as well as Measures 47 and 50, limit the taxing and spending authority of certain Oregon governmental entities. These amendments could have an adverse effect on the general financial condition of certain municipal entities that would impair the ability of certain Oregon issuers to pay interest and principal on their obligations. The Fund is also permitted to invest in U.S. territorial municipal obligations meeting comparable quality standards and providing income which is exempt from both regular Federal and Oregon income taxes. At September 30, 2023, the Fund had 100% of its long-term portfolio holdings invested in municipal obligations of issuers within Oregon.
Aquila Narragansett Tax-Free Income Fund
Since the Fund invests principally and may invest entirely in double tax-free municipal obligations of issuers within Rhode Island, it is subject to possible risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Rhode Island and whatever effects these may have upon Rhode Island issuers’ ability to meet their obligations.
The Fund is also permitted to invest in U.S. territorial municipal obligations meeting comparable quality standards and providing income which is exempt from both regular
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Federal and Rhode Island income taxes. The general policy of the Fund is to invest in such securities only when comparable securities of Rhode Island issuers are not available in the market. At September 30, 2023, the Fund had all of its long-term portfolio holdings invested in the securities of Rhode Island issuers.
Aquila Tax-Free Fund For Utah
At least 50% of the Fund’s assets will always consist of obligations of Utah-based issuers. At September 30, 2023, the Fund had 79% of its portfolio holdings invested in municipal obligations of issuers within Utah. The Fund is also permitted to invest in tax-free municipal obligations of non-Utah-based issuers that are exempt from regular Federal income taxes and, pursuant to Utah statutory authority, the interest on which is currently exempt from Utah individual income taxes. There can be no certainty as to the ongoing exemption from Utah individual income tax of the interest of non-Utah-based issuers. Since the Fund invests principally and may invest entirely in double tax-free municipal obligations of issuers within Utah, it is subject to possible risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Utah and whatever effects these may have upon Utah issuers’ ability to meet their obligations.
6. Trustees’ Fees and Expenses
At September 30, 2023, there were 8 Trustees, one of whom is affiliated with the Manager and is not paid any fees. Trustee expenses breakdown as Trustees’ service fees (for carrying out their responsibilities) and attendance fees paid during the period. Attendance fees are paid to those in attendance at regularly scheduled quarterly Board Meetings and meetings of the Independent Trustees held prior to each quarterly Board Meeting, as well as additional meetings (such as Audit, Nominating, Shareholder and special meetings). Trustees are reimbursed for their expenses such as travel, accommodations and meals incurred in connection with attendance at Board Meetings and the Annual Meetings of Shareholders. Since the COVID-19 pandemic, such meeting-related expenses have been reduced.
During the six months ended September 30, 2023, Trustees’ fees and expenses breakdown as follows:
Fund | Trustees’ Service Fees | Trustees’ Expense Reimbursements | |||||
Aquila Tax-Free Trust of Arizona | $ | 33,273 | $ | 8,427 | |||
Aquila Tax-Free Fund of Colorado | 29,017 | 4,120 | |||||
Aquila Churchill Tax-Free Fund of Kentucky | 28,169 | 3,977 | |||||
Aquila Tax-Free Trust of Oregon | 67,789 | 8,660 | |||||
Aquila Narragansett Tax-Free Income Fund | 32,981 | 7,058 | |||||
Aquila Tax-Free Fund For Utah | 49,268 | 12,174 |
105 | Aquila Municipal Trust
NOTES TO FINANCIAL STATEMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
7. Capital Share Transactions
Aquila Tax-Free Trust of Arizona
Transactions in Capital Shares of the Fund were as follows:
Six Months Ended September 30, 2023 (unaudited) | Year Ended March 31, 2023 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Class A Shares: | ||||||||||
Proceeds from shares sold | 280,399 | $ | 2,749,437 | 1,359,410 | $ | 13,382,079 | ||||
Reinvested dividends and distributions | 175,021 | 1,697,246 | 324,996 | 3,178,651 | ||||||
Cost of shares redeemed | (1,123,088) | (10,932,301) | (3,594,167) | (35,224,343) | ||||||
Net change | (667,668) | (6,485,618) | (1,909,761) | (18,663,613) | ||||||
Class C Shares: | ||||||||||
Proceeds from shares sold | 7,147 | 68,000 | 27,949 | 276,153 | ||||||
Reinvested dividends and distributions | 1,788 | 17,333 | 4,521 | 44,258 | ||||||
Cost of shares redeemed | (50,553) | (494,563) | (303,194) | (2,968,102) | ||||||
Net change | (41,618) | (409,230) | (270,724) | (2,647,691) | ||||||
Class Y Shares: | ||||||||||
Proceeds from shares sold | 882,517 | 8,617,296 | 2,071,465 | 20,317,858 | ||||||
Reinvested dividends and distributions | 62,272 | 604,228 | 113,118 | 1,107,728 | ||||||
Cost of shares redeemed | (719,726) | (6,997,347) | (3,699,404) | (36,252,148) | ||||||
Net change | 225,063 | 2,224,177 | (1,514,821) | (14,826,562) | ||||||
Total transactions in Fund shares | (484,223) | $ | (4,670,671) | (3,695,306) | $ | (36,137,866) |
106 | Aquila Municipal Trust
NOTES TO FINANCIAL STATEMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Aquila Tax-Free Fund of Colorado
Transactions in Capital Shares of the Fund were as follows:
Six Months Ended September 30, 2023 (unaudited) | Year Ended March 31, 2023 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Class A Shares: | ||||||||||
Proceeds from shares sold | 102,039 | $ | 994,976 | 1,098,028 | $ | 10,682,101 | ||||
Reinvested dividends and distributions | 118,289 | 1,147,080 | 231,630 | 2,263,078 | ||||||
Cost of shares redeemed | (1,573,196) | (15,333,198) | (3,387,310) | (33,121,108) | ||||||
Net change | (1,352,868) | (13,191,142) | (2,057,652) | (20,175,929) | ||||||
Class C Shares: | ||||||||||
Proceeds from shares sold | 1,334 | 12,990 | 18,162 | 177,361 | ||||||
Reinvested dividends and distributions | 1,339 | 12,957 | 2,844 | 27,718 | ||||||
Cost of shares redeemed | (87,163) | (844,847) | (218,864) | (2,137,213) | ||||||
Net change | (84,490) | (818,900) | (197,858) | (1,932,134) | ||||||
Class Y Shares: | ||||||||||
Proceeds from shares sold | 375,504 | 3,673,118 | 1,613,008 | 15,825,368 | ||||||
Reinvested dividends and distributions | 37,159 | 361,313 | 79,092 | 774,352 | ||||||
Cost of shares redeemed | (1,345,839) | (13,152,731) | (5,041,056) | (49,331,881) | ||||||
Net change | (933,176) | (9,118,300) | (3,348,956) | (32,732,161) | ||||||
Total transactions in Fund shares | (2,370,534) | $ | (23,128,342) | (5,604,466) | $ | (54,840,224) |
107 | Aquila Municipal Trust
NOTES TO FINANCIAL STATEMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Aquila Churchill Tax-Free Fund of Kentucky
Transactions in Capital Shares of the Fund were as follows:
Six Months Ended September 30, 2023 (unaudited) | Year Ended March 31, 2023 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Class A Shares: | ||||||||||
Proceeds from shares sold | 436,911 | $ | 4,331,187 | 616,846 | $ | 6,126,649 | ||||
Reinvested dividends and distributions | 121,194 | 1,190,151 | 243,218 | 2,412,332 | ||||||
Cost of shares redeemed | (814,017) | (8,011,542) | (1,670,464) | (16,564,312) | ||||||
Net change | (255,912) | (2,490,204) | (810,400) | (8,025,331) | ||||||
Class C Shares: | ||||||||||
Proceeds from shares sold | 2,820 | 27,871 | 1,154 | 11,555 | ||||||
Reinvested dividends and distributions | 1,376 | 13,518 | 4,055 | 40,232 | ||||||
Cost of shares redeemed | (58,174) | (578,854) | (152,941) | (1,518,081) | ||||||
Net change | (53,978) | (537,465) | (147,732) | (1,466,294) | ||||||
Class F Shares: | ||||||||||
Proceeds from shares sold | 102,268 | 1,008,706 | 25,603 | 253,677 | ||||||
Reinvested dividends and distributions | 973 | 9,509 | 32 | 320 | ||||||
Cost of shares redeemed | (2,125) | (20,925) | (2) | (15) | ||||||
Net change | 101,116 | 997,290 | 25,633 | 253,982 | ||||||
Class I Shares: | ||||||||||
Proceeds from shares sold | — | — | 1 | 5 | ||||||
Reinvested dividends and distributions | 6,894 | 67,682 | 13,431 | 133,168 | ||||||
Cost of shares redeemed | (7,078) | (69,495) | (13,779) | (136,619) | ||||||
Net change | (184) | (1,813) | (347) | (3,446) | ||||||
Class Y Shares: | ||||||||||
Proceeds from shares sold | 409,648 | 4,047,361 | 1,920,139 | 18,978,161 | ||||||
Reinvested dividends and distributions | 36,178 | 355,284 | 65,232 | 647,413 | ||||||
Cost of shares redeemed | (474,222) | (4,677,416) | (1,830,572) | (18,026,700) | ||||||
Net change | (28,396) | (274,771) | 154,799 | 1,598,874 | ||||||
Total transactions in Fund shares | (237,354) | $ | (2,306,963) | (778,047) | $ | (7,642,215) |
108 | Aquila Municipal Trust
NOTES TO FINANCIAL STATEMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Aquila Tax-Free Trust of Oregon
Transactions in Capital Shares of the Fund were as follows:
Six Months Ended September 30, 2023 (unaudited) | Year Ended March 31, 2023 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Class A Shares: | ||||||||||
Proceeds from shares sold | 373,715 | $ | 3,843,399 | 2,503,450 | $ | 25,875,518 | ||||
Reinvested dividends and distributions | 237,274 | 2,432,679 | 488,456 | 5,037,254 | ||||||
Cost of shares redeemed | (3,064,843) | (31,532,968) | (7,131,445) | (73,493,715) | ||||||
Net change | (2,453,854) | (25,256,890) | (4,139,539) | (42,580,943) | ||||||
Class C Shares: | ||||||||||
Proceeds from shares sold | 9,968 | 102,727 | 43,267 | 447,137 | ||||||
Reinvested dividends and distributions | 1,539 | 15,760 | 4,216 | 43,405 | ||||||
Cost of shares redeemed | (60,131) | (618,465) | (427,066) | (4,390,557) | ||||||
Net change | (48,624) | (499,978) | (379,583) | (3,900,015) | ||||||
Class F Shares: | ||||||||||
Proceeds from shares sold | 148,776 | 1,534,575 | 293,279 | 3,018,860 | ||||||
Reinvested dividends and distributions | 6,751 | 69,036 | 10,511 | 108,245 | ||||||
Cost of shares redeemed | (63,640) | (655,029) | (192,222) | (1,975,773) | ||||||
Net change | 91,887 | 948,582 | 111,568 | 1,151,332 | ||||||
Class Y Shares: | ||||||||||
Proceeds from shares sold | 2,983,774 | 30,643,641 | 9,592,499 | 98,530,817 | ||||||
Reinvested dividends and distributions | 100,306 | 1,027,356 | 212,625 | 2,190,757 | ||||||
Cost of shares redeemed | (2,095,049) | (21,511,881) | (16,219,126) | (166,622,250) | ||||||
Net change | 989,031 | 10,159,116 | (6,414,002) | (65,900,676) | ||||||
Total transactions in Fund shares | (1,421,560) | $ | (14,649,170) | (10,821,556) | $ | (111,230,302) |
109 | Aquila Municipal Trust
NOTES TO FINANCIAL STATEMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Aquila Narragansett Tax-Free Income Fund
Transactions in Capital Shares of the Fund were as follows:
Six Months Ended September 30, 2023 (unaudited) | Year Ended March 31, 2023 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Class A Shares: | ||||||||||
Proceeds from shares sold | 172,714 | $ | 1,728,255 | 615,527 | $ | 6,158,698 | ||||
Reinvested dividends and distributions | 70,506 | 701,559 | 150,173 | 1,504,226 | ||||||
Cost of shares redeemed | (848,187) | (8,506,184) | (2,218,593) | (22,245,456) | ||||||
Net change | (604,967) | (6,076,370) | (1,452,893) | (14,582,532) | ||||||
Class C Shares: | ||||||||||
Proceeds from shares sold | 2,219 | 22,244 | 11,661 | 116,861 | ||||||
Reinvested dividends and distributions | 443 | 4,405 | 1,174 | 11,773 | ||||||
Cost of shares redeemed | (25,855) | (257,115) | (107,277) | (1,071,896) | ||||||
Net change | (23,193) | (230,466) | (94,442) | (943,262) | ||||||
Class F Shares: | ||||||||||
Proceeds from shares sold | 72,023 | 721,148 | 311,373 | 3,107,313 | ||||||
Reinvested dividends and distributions | 5,750 | 57,091 | 11,017 | 110,113 | ||||||
Cost of shares redeemed | (124,796) | (1,247,945) | (193,072) | (1,936,689) | ||||||
Net change | (47,023) | (469,706) | 129,318 | 1,280,737 | ||||||
Class I Shares: | ||||||||||
Proceeds from shares sold | — | 5 | 1 | 13 | ||||||
Reinvested dividends and distributions | 59 | 592 | 411 | 4,111 | ||||||
Cost of shares redeemed | (540) | (5,447) | (24,111) | (241,788) | ||||||
Net change | (481) | (4,850) | (23,699) | (237,664) | ||||||
Class Y Shares: | ||||||||||
Proceeds from shares sold | 560,434 | 5,614,305 | 1,900,590 | 19,182,484 | ||||||
Reinvested dividends and distributions | 40,726 | 405,043 | 86,014 | 861,267 | ||||||
Cost of shares redeemed | (914,066) | (9,122,385) | (4,319,419) | (43,242,910) | ||||||
Net change | (312,906) | (3,103,037) | (2,332,815) | (23,199,159) | ||||||
Total transactions in Fund shares | (988,570) | $ | (9,884,429) | (3,774,531) | $ | (37,681,880) |
110 | Aquila Municipal Trust
NOTES TO FINANCIAL STATEMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Aquila Tax-Free Fund For Utah
Transactions in Capital Shares of the Fund were as follows:
Six Months Ended September 30, 2023 (unaudited) | Year Ended March 31, 2023 | |||||||||
Shares | Amount | Shares | Amount | |||||||
Class A Shares: | ||||||||||
Proceeds from shares sold | 567,278 | $ | 5,440,488 | 3,089,845 | $ | 29,799,037 | ||||
Reinvested dividends and distributions | 167,423 | 1,598,427 | 376,276 | 3,624,290 | ||||||
Cost of shares redeemed | (2,518,919) | (24,062,887) | (7,600,622) | (73,208,173) | ||||||
Net change | (1,784,218) | (17,023,972) | (4,134,501) | (39,784,846) | ||||||
Class C Shares: | ||||||||||
Proceeds from shares sold | 27,117 | 260,488 | 145,689 | 1,402,613 | ||||||
Reinvested dividends and distributions | 6,233 | 59,528 | 15,895 | 153,085 | ||||||
Cost of shares redeemed | (244,887) | (2,348,861) | (787,783) | (7,605,227) | ||||||
Net change | (211,537) | (2,028,845) | (626,199) | (6,049,529) | ||||||
Class F Shares: | ||||||||||
Proceeds from shares sold | 94,470 | 912,851 | 348,791 | 3,401,443 | ||||||
Reinvested dividends and distributions | 7,426 | 71,329 | 21,159 | 204,899 | ||||||
Cost of shares redeemed | (198,009) | (1,922,914) | (778,321) | (7,542,773) | ||||||
Net change | (96,113) | (938,734) | (408,371) | (3,936,431) | ||||||
Class Y Shares: | ||||||||||
Proceeds from shares sold | 1,549,531 | 14,886,774 | 5,176,739 | 50,081,712 | ||||||
Reinvested dividends and distributions | 139,179 | 1,331,619 | 312,773 | 3,020,064 | ||||||
Cost of shares redeemed | (1,457,342) | (14,017,029) | (10,151,902) | (97,883,375) | ||||||
Net change | 231,368 | 2,201,364 | (4,662,390) | (44,781,599) | ||||||
Total transactions in Fund shares | (1,860,500) | $ | (17,790,187) | (9,831,461) | $ | (94,552,405) |
111 | Aquila Municipal Trust
NOTES TO FINANCIAL STATEMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
8. Securities Traded on a When-Issued Basis
The Funds may purchase or sell securities on a when-issued basis. When-issued transactions arise when securities are purchased or sold by the Fund with payment and delivery taking place in the future in order to secure what is considered to be an advantageous price and yield to the Fund at the time of entering into the transaction. These transactions are subject to market fluctuations and their current value is determined in the same manner as for other securities.
9. Income Tax Information and Distributions
The Funds declare dividends daily from net investment income and makes payments monthly. Net realized capital gains, if any, are distributed annually and are taxable. These distributions are paid in additional shares at the net asset value per share or in cash, at the shareholder’s option.
The Funds intends to maintain, to the maximum extent possible, the tax-exempt status of interest payments received from portfolio municipal securities in order to allow dividends paid to shareholders from net investment income to be exempt from regular Federal and State of Utah income taxes. Due to differences between financial statement reporting and Federal income tax reporting requirements, distributions made by the Fund may not be the same as the Fund’s net investment income, and/or net realized securities gains. Further, a small portion of the dividends may, under some circumstances, be subject to taxes at ordinary income rates. For certain shareholders some dividend income may, under some circumstances, be subject to the Alternative Minimum Tax. As a result of the passage of the Regulated Investment Company Act of 2010 (the “Act”), losses incurred in this fiscal year and beyond retain their character as short-term or long-term, have no expiration and are utilized before capital losses incurred prior to the enactment of the Act.
Aquila Tax-Free Trust of Arizona
At March 31, 2023, the Fund had capital loss carry forwards of $2,641,424, $1,998,542 is short-term and $642,882 is long-term. Both have no expiration date. As of March 31, 2023, the Fund had post-October losses of $1,915,188, which is deferred until fiscal 2023 for tax purposes.
Aquila Tax-Free Fund of Colorado
At March 31, 2023, the Fund had capital loss carry forwards of $6,219,337 of which $3,512,376 retains its character of short-term and $2,706,961 retains its character of long-term; both have no expiration. This carryover is available to offset future net realized gains on securities transactions to the extent provided for in the Internal Revenue Code. As of March 31, 2023, the Fund had post-October losses of $1,424,157, which is deferred until fiscal 2023 for tax purposes.
112 | Aquila Municipal Trust
NOTES TO FINANCIAL STATEMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Aquila Churchill Tax-Free Fund of Kentucky
At March 31, 2023, the Fund had capital loss carry forwards of $694,311 of which $675,352 retains its character of short-term and $18,959 retains is character of long-term; both have no expiration. This carryover is available to offset future net realized gains on securities transactions to the extent provided for in the Internal Revenue Code. As of March 31, 2023, the Fund had post-October losses of $6,104, which is deferred until fiscal 2023 for tax purposes.
Aquila Tax-Free Trust of Oregon
At March 31, 2023, the Fund had capital loss carry forwards of $12,315,261 of which $4,399,507 retains its character of short-term and $7,915,754 retains its character of long-term; both have no expiration. As of March 31, 2023, the Fund had post-October losses of $3,738,717, which is deferred until fiscal 2023 for tax purposes.
Aquila Narragansett Tax-Free Income Fund
At March 31, 2023, the Fund had capital loss carry forwards of $1,463,750 of which $996,256 retains its character of short-term and $467,494 retains its character of long-term; both have no expiration. This carryover is available to offset future net realized gains on securities transactions to the extent provided for in the Internal Revenue Code. As of March 31, 2023, the Fund had post-October losses of $1,330,771, which is deferred until fiscal 2023 for tax purposes.
Aquila Tax-Free Fund For Utah
At March 31, 2023, the Fund had capital loss carry forwards of $9,830,586 of which $4,108,410 retains its character of short-term and $5,722,176 retains its character of long-term; both have no expiration. As of March 31, 2023, the Fund had post-October losses of $1,721,327, which is deferred until fiscal 2023 for tax purposes.
The tax character of distributions was as follows:
Aquila Tax-Free Trust of Arizona | Aquila Tax-Free Fund of Colorado | ||||||||||||
Year Ended March 31, | Year Ended March 31, | ||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
Ordinary Income | $ | 5,180,813 | $ | 5,844,296 | $ | 3,657,262 | $ | 4,099,490 | |||||
Long term capital gain | 125,027 | 51,401 | 64,073 | — | |||||||||
$ | 5,305,840 | $ | 5,895,697 | $ | 3,721,335 | $ | 4,099,490 |
113 | Aquila Municipal Trust
NOTES TO FINANCIAL STATEMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
As of March 31, 2023, the components of distributable earnings on a tax basis were:
Aquila Tax-Free Trust of Arizona | Aquila Tax-Free Fund of Colorado | ||||||
Undistributed tax-exempt income | $ | 93,438 | $ | 47,186 | |||
Unrealized depreciation | (2,641,424) | (496,651) | |||||
Accumulated net realized loss on investments | (3,080,449) | (6,219,337) | |||||
Post-October losses | (1,915,188) | (1,424,157) | |||||
Other temporary differences | (82,369) | (47,189) | |||||
$ | (7,625,992) | $ | (8,140,148) |
The tax character of distributions was as follows:
Aquila Churchill Tax-Free Fund of Kentucky | Aquila Tax-Free Trust of Oregon | ||||||||||||
Year Ended March 31, | Year Ended March 31, | ||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
Ordinary Income | $ | 3,869,954 | $ | 3,777,511 | $ | 8,973,520 | $ | 9,769,437 | |||||
Long term capital gain | 70,993 | 329 | 139,268 | 1,094 | |||||||||
Capital gains | — | 171,186 | — | — | |||||||||
$ | 3,940,947 | $ | 3,949,026 | $ | 9,112,788 | $ | 9,770,531 |
As of March 31, 2023, the components of distributable earnings on a tax basis were:
Aquila Churchill Tax-Free Fund of Kentucky | Aquila Tax-Free Trust of Oregon | ||||||
Undistributed tax-exempt income | $ | 67,912 | $ | 168,462 | |||
Unrealized depreciation | (5,554,043) | (3,786,019) | |||||
Accumulated net realized loss on investments | (694,311) | (12,315,261) | |||||
Post-October losses | (6,104) | (3,738,717) | |||||
Other temporary differences | (56,721) | (154,159) | |||||
$ | (6,243,267) | $ | (19,825,694) |
114 | Aquila Municipal Trust
NOTES TO FINANCIAL STATEMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
The tax character of distributions was as follows:
Aquila Narragansett Tax-Free Income Fund | Aquila Tax-Free Fund For Utah | ||||||||||||
Year Ended March 31, | Year Ended March 31, | ||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
Net tax-exempt Income | $ | 4,506,171 | $ | 5,004,124 | $ | 8,033,612 | $ | 8,551,851 | |||||
Ordinary income | 70,176 | 524 | 90,734 | 837 | |||||||||
$ | 4,576,347 | $ | 5,004,648 | $ | 8,124,346 | $ | 8,552,688 |
As of March 31, 2023, the components of distributable earnings on a tax basis were:
Aquila Narragansett Tax-Free Income Fund | Aquila Tax-Free Fund For Utah | ||||||
Undistributed tax-exempt income | $ | 162,134 | $ | 93,557 | |||
Unrealized depreciation | (7,411,106) | (7,316,358) | |||||
Accumulated net realized loss on investments | (1,463,750) | (9,830,586) | |||||
Post-October losses | (1,330,771) | (1,721,327) | |||||
Other temporary differences | (161,923) | (92,988) | |||||
$ | (10,205,416) | $ | (18,867,702) |
The difference between book basis and tax basis unrealized appreciation and undistributed income is due to the timing difference, and other temporary differences, in recognizing dividends paid, the tax treatment of market discount amortization, and the deduction of distributions payable.
10. Credit Facility
Since August 30, 2017, Bank of New York Mellon and the Aquila Group of Funds (comprised of nine funds) have been parties to a $40 million credit agreement, which currently terminates on August 24, 2024 (per the August 23, 2023 amendment). In accordance with the Aquila Group of Funds Guidelines for Allocation of Committed Line of Credit, each fund is responsible for payment of its proportionate share of
a) | a 0.17% per annum commitment fee; and, |
b) | interest on amounts borrowed for temporary or emergency purposes by the fund (at the applicable per annum rate selected by the Aquila Group of Funds at the time of the borrowing of either (i) the adjusted daily simple Secured Overnight Financing Rate (“SOFR”) plus 1% or (ii) the sum of the higher of (a) the Prime Rate, (b) the Federal Funds Effective Rate, or (c) the adjusted daily simple Secured Overnight Financing Rate plus 1%). |
115 | Aquila Municipal Trust
NOTES TO FINANCIAL STATEMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
There were no borrowings under the credit agreement during the six months ended September 30, 2023.
11. Risks
Mutual fund investing involves risk and loss of principal is possible. The market prices of the Funds’ securities may rise or decline in value due to general market conditions, such as real or perceived adverse economic, political or regulatory conditions, political instability, recessions, inflation, changes in interest rates, lack of liquidity in the bond markets, the spread of infectious illness or other public health issues, weather or climate events, armed conflict, sanctions or other government actions, market disruptions caused by tariffs, trade disputes or other factors, or adverse investor sentiment. When market prices fall, the value of your investment may go down. In the past decade, financial markets have experienced increased volatility, depressed valuations, decreased liquidity and heightened uncertainty. These conditions may continue, recur, worsen or spread. The long-term impact of the COVID-19 pandemic and its subsequent variants on economies, markets, industries and individual issuers, are not known. Some sectors of the economy and individual issuers have experienced or may experience particularly large losses. Periods of extreme volatility in the financial markets, reduced liquidity of many instruments, increased government debt, inflation, and disruptions to supply chains, consumer demand and employee availability, may continue for some time.
Raising the ceiling on U.S. government debt has become increasingly politicized. Any failure to increase the total amount that the U.S. government is authorized to borrow could lead to a default on U.S. government obligations, with unpredictable consequences for economies and markets in the U.S. and elsewhere. Inflation and interest rates have increased and may rise further. These circumstances could adversely affect the value and liquidity of the Funds’ investments, impair the Funds’ ability to satisfy redemption requests, and negatively impact the Funds’ performance.
Economies and financial markets throughout the world are increasingly interconnected. Economic, financial or political events, trading and tariff arrangements, public health events, terrorism, wars, natural disasters and other circumstances in one country or region could have profound impacts on global economies or markets. As a result, whether or not the Funds invest in securities of issuers located in or with significant exposure to the countries or markets directly affected, the value and liquidity of the Funds’ investments may be negatively affected. Following Russia’s invasion of Ukraine, Russian securities lost all, or nearly all, their market value. Other securities or markets could be similarly affected by past or future political, geopolitical or other events or conditions. Furthermore, events involving limited liquidity, defaults, non-performance or other adverse developments that affect one industry, such as the financial services industry, or concerns or rumors about any events of these kinds, have in the past and may in the future lead to market-wide liquidity problems, may spread to other industries, and could negatively affect the value and liquidity of the Funds’ investments.
116 | Aquila Municipal Trust
NOTES TO FINANCIAL STATEMENTS (continued) SEPTEMBER 30, 2023 (unaudited) |
Governments and central banks, including the U.S. Federal Reserve, have taken extraordinary and unprecedented actions to support local and global economies and the financial markets. These actions have resulted in significant expansion of public debt, including in the U.S. The consequences of high public debt, including its future impact on the economy and securities markets, may not be known for some time.
The U.S. and other countries are periodically involved in disputes over trade and other matters, which may result in tariffs, investment restrictions and adverse impacts on affected companies and securities. For example, the U.S. has imposed tariffs and other trade barriers on Chinese exports, has restricted sales of certain categories of goods to China, and has established barriers to investments in China. Trade disputes may adversely affect the economies of the U.S. and its trading partners, as well as companies directly or indirectly affected and financial markets generally. If the political climate between the U.S. and China does not improve or continues to deteriorate, if China were to attempt unification of Taiwan by force, or if other geopolitical conflicts develop or get worse, economies, markets and individual securities may be severely affected both regionally and globally, and the value of the Funds’ assets may go down.
The value of your investment will generally go down when interest rates rise. A rise in interest rates tends to have a greater impact on the prices of longer term or longer duration securities. In recent years, interest rates and credit spreads in the U.S. have been at historic lows. The U.S. Federal Reserve has raised certain interest rates, and interest rates may continue to go up. A general rise in interest rates may cause investors to move out of fixed income securities on a large scale and could also result in increased redemptions from the Funds.
Investments in the Funds are subject to possible loss due to the financial failure of the issuers of underlying securities and their inability to meet their debt obligations.
The value of municipal securities can be adversely affected by changes in the financial condition of one or more individual municipal issuers or insurers of municipal issuers, regulatory developments, legislative actions, and by uncertainties and public perceptions concerning these and other factors. The Funds may be affected significantly by adverse economic, political or other events affecting state and other municipal issuers in which they invest, and may be more volatile than a more geographically diverse fund. The municipal bond market can be susceptible to unusual volatility, particularly for lower-rated and unrated securities. Liquidity can be reduced unpredictably in response to overall economic conditions or credit tightening. Municipal issuers may be adversely affected by rising health care costs, increasing unfunded pension liabilities, and by the phasing out of federal programs providing financial support. Unfavorable conditions and developments relating to projects financed with municipal securities can result in lower revenues to issuers of municipal securities, potentially resulting in defaults. Municipal securities may be more susceptible to downgrades or defaults during a recession or similar periods of economic stress. Financial difficulties of municipal issuers may continue or get worse, particularly in the event of political, economic or market turmoil or a recession.
A portion of income may be subject to local, state, Federal and/or alternative minimum tax. Capital gains, if any, are subject to capital gains tax.
These risks may result in share price volatility.
117 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF ARIZONA FINANCIAL HIGHLIGHTS |
For a share outstanding throughout each period
Class A | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $9.87 | $10.14 | $10.82 | $10.68 | $10.61 | $10.47 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(1) | 0.14 | 0.22 | 0.23 | 0.25 | 0.27 | 0.29 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.44) | (0.25) | (0.69) | 0.14 | 0.07 | 0.16 | ||||||
Total from investment operations | (0.30) | (0.03) | (0.46) | 0.39 | 0.34 | 0.45 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.14) | (0.24) | (0.22) | (0.25) | (0.27) | (0.29) | ||||||
Distributions from capital gains | — | — | — | — | — | (0.02) | ||||||
Total distributions | (0.14) | (0.24) | (0.22) | (0.25) | (0.27) | (0.31) | ||||||
Net asset value, end of period | $9.43 | $9.87 | $10.14 | $10.82 | $10.68 | $10.61 | ||||||
Total return (not reflecting sales charge) | (3.11)%(2) | (0.27)% | (4.32)% | 3.63% | 3.16% | 4.37% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $142 | $155 | $179 | $198 | $199 | $204 | ||||||
Ratio of expenses to average net assets | 0.74%(3) | 0.74% | 0.69% | 0.71% | 0.74% | 0.73% | ||||||
Ratio of net investment income to average net assets | 2.79%(3) | 2.26% | 2.11% | 2.30% | 2.49% | 2.74% | ||||||
Portfolio turnover rate | 33%(2) | 32% | 35% | 11% | 21% | 34% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
118 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF ARIZONA FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class C | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $9.86 | $10.13 | $10.81 | $10.67 | $10.61 | $10.47 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(1) | 0.09 | 0.14 | 0.14 | 0.16 | 0.18 | 0.20 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.44) | (0.26) | (0.69) | 0.13 | 0.05 | 0.15 | ||||||
Total from investment operations | (0.35) | (0.12) | (0.55) | 0.29 | 0.23 | 0.35 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.09) | (0.15) | (0.13) | (0.15) | (0.17) | (0.19) | ||||||
Distributions from capital gains | — | — | — | — | — | (0.02) | ||||||
Total distributions | (0.09) | (0.15) | (0.13) | (0.15) | (0.17) | (0.21) | ||||||
Net asset value, end of period | $9.42 | $9.86 | $10.13 | $10.81 | $10.67 | $10.61 | ||||||
Total return (not reflecting CDSC) | (3.53)%(2) | (1.11)% | (5.13)% | 2.76% | 2.20% | 3.49% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $2 | $2 | $5 | $7 | $8 | $9 | ||||||
Ratio of expenses to average net assets | 1.59%(3) | 1.59% | 1.54% | 1.56% | 1.59% | 1.58% | ||||||
Ratio of net investment income to average net assets | 1.93%(3) | 1.39% | 1.26% | 1.45% | 1.65% | 1.88% | ||||||
Portfolio turnover rate | 33%(2) | 32% | 35% | 11% | 21% | 34% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
119 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF ARIZONA FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class Y | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $9.88 | $10.15 | $10.84 | $10.69 | $10.63 | $10.49 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(1) | 0.14 | 0.24 | 0.24 | 0.26 | 0.28 | 0.30 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.44) | (0.26) | (0.69) | 0.15 | 0.06 | 0.16 | ||||||
Total from investment operations | (0.30) | (0.02) | (0.45) | 0.41 | 0.34 | 0.46 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.14) | (0.25) | (0.24) | (0.26) | (0.28) | (0.30) | ||||||
Distributions from capital gains | — | — | — | — | — | (0.02) | ||||||
Total distributions | (0.14) | (0.25) | (0.24) | (0.26) | (0.28) | (0.32) | ||||||
Net asset value, end of period | $9.44 | $9.88 | $10.15 | $10.84 | $10.69 | $10.63 | ||||||
Total return (not reflecting sales charge) | (3.04)%(2) | (0.11)% | (4.26)% | 3.88% | 3.21% | 4.51% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $48 | $48 | $65 | $75 | $53 | $40 | ||||||
Ratio of expenses to average net assets | 0.59%(3) | 0.59% | 0.54% | 0.56% | 0.60% | 0.59% | ||||||
Ratio of net investment income to average net assets | 2.95%(3) | 2.41% | 2.26% | 2.44% | 2.62% | 2.88% | ||||||
Portfolio turnover rate | 33%(2) | 32% | 35% | 11% | 21% | 34% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
120 | Aquila Municipal Trust
AQUILA TAX-FREE FUND OF COLORADO FINANCIAL HIGHLIGHTS |
For a share outstanding throughout each period
Class A | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $9.87 | $9.99 | $10.64 | $10.56 | $10.46 | $10.31 | ||||||
Income from investment operations: | ||||||||||||
Net investment income(1) | 0.11 | 0.18 | 0.16 | 0.18 | 0.22 | 0.24 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.38) | (0.12) | (0.65) | 0.08 | 0.10 | 0.15 | ||||||
Total from investment operations | (0.27) | 0.06 | (0.49) | 0.26 | 0.32 | 0.39 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.11) | (0.18) | (0.16) | (0.18) | (0.22) | (0.24) | ||||||
Distributions from capital gains | — | — | — | — | — | — | ||||||
Total distributions | (0.11) | (0.18) | (0.16) | (0.18) | (0.22) | (0.24) | ||||||
Net asset value, end of period | $9.49 | $9.87 | $9.99 | $10.64 | $10.56 | $10.46 | ||||||
Total return (not reflecting sales charge) | (2.78)%(2) | 0.65% | (4.67)% | 2.48% | 3.03% | 3.86% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $113 | $131 | $154 | $179 | $186 | $188 | ||||||
Ratio of expenses to average net assets | 0.76%(3) | 0.72% | 0.69% | 0.69% | 0.71% | 0.70% | ||||||
Ratio of net investment income to average net assets | 2.20%(3) | 1.85% | 1.52% | 1.69% | 2.04% | 2.35% | ||||||
Portfolio turnover rate | 15%(2) | 12% | 14% | 7% | 13% | 7% |
Expense and net investment income ratios without the effect of the contractual fee waiver were (note 3):
Ratio of expenses to average net assets | 0.78%(3) | 0.74% | 0.71% | 0.71% | 0.73% | 0.72% | ||||||
Ratio of net investment income to average net assets | 2.18%(3) | 1.83% | 1.50% | 1.67% | 2.02% | 2.33% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
121 | Aquila Municipal Trust
AQUILA TAX-FREE FUND OF COLORADO FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class C | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $9.85 | $9.97 | $10.62 | $10.54 | $10.44 | $10.29 | ||||||
Income from investment operations: | ||||||||||||
Net investment income(1) | 0.06 | 0.09 | 0.06 | 0.08 | 0.12 | 0.14 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.39) | (0.12) | (0.65) | 0.08 | 0.10 | 0.15 | ||||||
Total from investment operations | (0.33) | (0.03) | (0.59) | 0.16 | 0.22 | 0.29 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.06) | (0.09) | (0.06) | (0.08) | (0.12) | (0.14) | ||||||
Distributions from capital gains | — | — | — | –– | –– | –– | ||||||
Total distributions | (0.06) | (0.09) | (0.06) | (0.08) | (0.12) | (0.14) | ||||||
Net asset value, end of period | $9.46 | $9.85 | $9.97 | $10.62 | $10.54 | $10.44 | ||||||
Total return (not reflecting CDSC) | (3.35)%(2) | (0.30)% | (5.58)% | 1.51% | 2.06% | 2.88% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $2 | $2 | $4 | $7 | $8 | $9 | ||||||
Ratio of expenses to average net assets | 1.70%(3) | 1.67% | 1.63% | 1.64% | 1.66% | 1.65% | ||||||
Ratio of net investment income to average net assets | 1.25%(3) | 0.89% | 0.58% | 0.75% | 1.09% | 1.40% | ||||||
Portfolio turnover rate | 15%(2) | 12% | 14% | 7% | 13% | 7% |
Expense and net investment income ratios without the effect of the contractual fee waiver were (note 3):
Ratio of expenses to average net assets | 1.72%(3) | 1.69% | 1.65% | 1.66% | 1.68% | 1.67% | ||||||
Ratio of net investment income to average net assets | 1.23%(3) | 0.87% | 0.56% | 0.73% | 1.07% | 1.38% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
122 | Aquila Municipal Trust
AQUILA TAX-FREE FUND OF COLORADO FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class Y | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $9.90 | $10.01 | $10.66 | $10.58 | $10.49 | $10.34 | ||||||
Income from investment operations: | ||||||||||||
Net investment income(1) | 0.11 | 0.19 | 0.17 | 0.19 | 0.22 | 0.25 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.39) | (0.11) | (0.65) | 0.08 | 0.09 | 0.15 | ||||||
Total from investment operations | (0.28) | 0.08 | (0.48) | 0.27 | 0.31 | 0.40 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.11) | (0.19) | (0.17) | (0.19) | (0.22) | (0.25) | ||||||
Distributions from capital gains | — | — | — | –– | –– | –– | ||||||
Total distributions | (0.11) | (0.19) | (0.17) | (0.19) | (0.22) | (0.25) | ||||||
Net asset value, end of period | $9.51 | $9.90 | $10.01 | $10.66 | $10.58 | $10.49 | ||||||
Total return | (2.85)%(2) | 0.82% | (4.60)% | 2.53% | 2.98% | 3.90% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $33 | $43 | $77 | $96 | $72 | $70 | ||||||
Ratio of expenses to average net assets | 0.70%(3) | 0.67% | 0.63% | 0.64% | 0.66% | 0.65% | ||||||
Ratio of net investment income to average net assets | 2.25%(3) | 1.89% | 1.58% | 1.74% | 2.09% | 2.40% | ||||||
Portfolio turnover rate | 15%(2) | 12% | 14% | 7% | 13% | 7% |
Expense and net investment income ratios without the effect of the contractual fee waiver were (note 3):
Ratio of expenses to average net assets | 0.72%(3) | 0.69% | 0.65% | 0.66% | 0.68% | 0.67% | ||||||
Ratio of net investment income to average net assets | 2.23%(3) | 1.87% | 1.56% | 1.72% | 2.07% | 2.38% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
123 | Aquila Municipal Trust
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY FINANCIAL HIGHLIGHTS |
For a share outstanding throughout each period
Class A | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $10.02 | $10.25 | $10.93 | $10.79 | $10.64 | $10.48 | ||||||
Income from investment operations: | ||||||||||||
Net investment income(1) | 0.12 | 0.22 | 0.22 | 0.23 | 0.24 | 0.25 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.47) | (0.22) | (0.67) | 0.14 | 0.15 | 0.18 | ||||||
Total from investment operations | (0.35) | — | (0.45) | 0.37 | 0.39 | 0.43 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.12) | (0.23) | (0.22) | (0.23) | (0.24) | (0.25) | ||||||
Distributions from capital gains | — | — | (0.01) | — | — | (0.02) | ||||||
Total distributions | (0.12) | (0.23) | (0.23) | (0.23) | (0.24) | (0.27) | ||||||
Net asset value, end of period | $9.55 | $10.02 | $10.25 | $10.93 | $10.79 | $10.64 | ||||||
Total return (not reflecting sales charge) | (3.55)%(2) | 0.05% | (4.25)% | 3.48% | 3.72% | 4.10% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $105 | $113 | $124 | $135 | $142 | $144 | ||||||
Ratio of expenses to average net assets | 0.79%(3) | 0.76% | 0.75% | 0.77% | 0.80% | 0.79% | ||||||
Ratio of net investment income to average net assets | 2.37%(3) | 2.26% | 1.99% | 2.14% | 2.26% | 2.36% | ||||||
Portfolio turnover rate | 9%(2) | 10% | 7% | 7% | 6% | 6% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
124 | Aquila Municipal Trust
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class C | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $10.02 | $10.25 | $10.93 | $10.78 | $10.64 | $10.47 | ||||||
Income from investment operations: | ||||||||||||
Net investment income(1) | 0.08 | 0.14 | 0.12 | 0.14 | 0.15 | 0.16 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.47) | (0.22) | (0.67) | 0.15 | 0.14 | 0.19 | ||||||
Total from investment operations | (0.39) | (0.08) | (0.55) | 0.29 | 0.29 | 0.35 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.08) | (0.15) | (0.12) | (0.14) | (0.15) | (0.16) | ||||||
Distributions from capital gains | — | — | (0.01) | — | — | (0.02) | ||||||
Total distributions | (0.08) | (0.15) | (0.13) | (0.14) | (0.15) | (0.18) | ||||||
Net asset value, end of period | $9.55 | $10.02 | $10.25 | $10.93 | $10.78 | $10.64 | ||||||
Total return (not reflecting CDSC) | (3.96)%(2) | (0.80)% | (5.06%) | 2.70% | 2.75% | 3.32% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $2 | $2 | $4 | $5 | $6 | $7 | ||||||
Ratio of expenses to average net assets | 1.63%(3) | 1.61% | 1.60% | 1.62% | 1.65% | 1.64% | ||||||
Ratio of net investment income to average net assets | 1.51%(3) | 1.41% | 1.13% | 1.29% | 1.41% | 1.50% | ||||||
Portfolio turnover rate | 9%(2) | 10% | 7% | 7% | 6% | 6% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
125 | Aquila Municipal Trust
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class F | ||||
For the | ||||
Period | ||||
Six | December 21, | |||
Months | 2022* | |||
Ended | through | |||
9/30/23 | March 31, | |||
(unaudited) | 2023 | |||
Net asset value, beginning of period | $10.01 | $9.91 | ||
Income (loss) from investment operations: | ||||
Net investment income(1) | 0.12 | 0.06 | ||
Net gain (loss) on securities (both realized and unrealized) | (0.46) | 0.13 | ||
Total from investment operations | (0.34) | 0.19 | ||
Less distributions (note 9): | ||||
Dividends from net investment income | (0.13) | (0.09) | ||
Distributions from capital gains | — | — | ||
Total distributions | (0.13) | (0.09) | ||
Net asset value, end of period | $9.54 | $10.01 | ||
Total return | (3.47)%(2) | 1.88%(2) | ||
Ratios/supplemental data | ||||
Net assets, end of period (in millions) | $1.2 | $0.3 | ||
Ratio of expenses to average net assets | 0.61%(3) | 0.56%(3) | ||
Ratio of net investment income to average net assets | 2.53%(3) | 2.30%(3) | ||
Portfolio turnover rate | 9%(2) | 10% |
* Commencement of operations.
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
126 | Aquila Municipal Trust
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class I | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $10.01 | $10.25 | $10.92 | $10.78 | $10.64 | $10.47 | ||||||
Income from investment operations: | ||||||||||||
Net investment income(1) | 0.11 | 0.21 | 0.20 | 0.22 | 0.23 | 0.23 | ||||||
Net gain on securities (both realized and unrealized) | (0.46) | (0.23) | (0.66) | 0.14 | 0.14 | 0.19 | ||||||
Total from investment operations | (0.35) | (0.02) | (0.46) | 0.36 | 0.37 | 0.42 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.11) | (0.22) | (0.20) | (0.22) | (0.23) | (0.23) | ||||||
Distributions from capital gains | — | — | (0.01) | — | — | (0.02) | ||||||
Total distributions | (0.11) | (0.22) | (0.21) | (0.22) | (0.23) | (0.25) | ||||||
Net asset value, end of period | $9.55 | $10.01 | $10.25 | $10.92 | $10.78 | $10.64 | ||||||
Total return | (3.53)%(2) | (0.20)% | (4.31)% | 3.33% | 3.48% | 4.04% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $6 | $6 | $6 | $7 | $7 | $7 | ||||||
Ratio of expenses to average net assets | 0.94%(3) | 0.91% | 0.91% | 0.92% | 0.93% | 0.94% | ||||||
Ratio of net investment income to average net assets | 2.21%(3) | 2.11% | 1.84% | 1.99% | 2.12% | 2.20% | ||||||
Portfolio turnover rate | 9%(2) | 10% | 7% | 7% | 6% | 6% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
127 | Aquila Municipal Trust
AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class Y | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $10.02 | $10.26 | $10.93 | $10.79 | $10.65 | $10.48 | ||||||
Income from investment operations: | ||||||||||||
Net investment income(1) | 0.12 | 0.24 | 0.23 | 0.25 | 0.26 | 0.26 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.47) | (0.24) | (0.66) | 0.14 | 0.14 | 0.19 | ||||||
Total from investment operations | (0.35) | — | (0.43) | 0.39 | 0.40 | 0.45 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.12) | (0.24) | (0.23) | (0.25) | (0.26) | (0.26) | ||||||
Distributions from capital gains | — | — | (0.01) | — | — | (0.02) | ||||||
Total distributions | (0.12) | (0.24) | (0.24) | (0.25) | (0.26) | (0.28) | ||||||
Net asset value, end of period | $9.55 | $10.02 | $10.26 | $10.93 | $10.79 | $10.65 | ||||||
Total return | (3.47)%(2) | 0.10% | (4.01)% | 3.64% | 3.78% | 4.35% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $43 | $46 | $45 | $40 | $27 | $30 | ||||||
Ratio of expenses to average net assets | 0.64%(3) | 0.61% | 0.60% | 0.62% | 0.65% | 0.64% | ||||||
Ratio of net investment income to average net assets | 2.52%(3) | 2.41% | 2.14% | 2.28% | 2.41% | 2.50% | ||||||
Portfolio turnover rate | 9%(2) | 10% | 7% | 7% | 6% | 6% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
128 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON FINANCIAL HIGHLIGHTS |
For a share outstanding throughout each period
Class A | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $10.45 | $10.55 | $11.25 | $11.13 | $10.98 | $10.81 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(1) | 0.10 | 0.18 | 0.16 | 0.18 | 0.21 | 0.24 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.43) | (0.10) | (0.70) | 0.12 | 0.15 | 0.17 | ||||||
Total from investment operations | (0.33) | 0.08 | (0.54) | 0.30 | 0.36 | 0.41 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.10) | (0.18) | (0.16) | (0.18) | (0.21) | (0.24) | ||||||
Distributions from capital gains | — | –– | –– | –– | — | — | ||||||
Total distributions | (0.10) | (0.18) | (0.16) | (0.18) | (0.21) | (0.24) | ||||||
Net asset value, end of period | $10.02 | $10.45 | $10.55 | $11.25 | $11.13 | $10.98 | ||||||
Total return (not reflecting sales charge) | (3.19)%(2) | 0.84% | (4.89)% | 2.68% | 3.30% | 3.90% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $258 | $294 | $341 | $379 | $375 | $368 | ||||||
Ratio of expenses to average net assets | 0.71%(3) | 0.70% | 0.66% | 0.71% | 0.71% | 0.70% | ||||||
Ratio of net investment income to average net assets | 1.92%(3) | 1.72% | 1.41% | 1.57% | 1.90% | 2.27% | ||||||
Portfolio turnover rate | 9%(2) | 12% | 13% | 5% | 12% | 10% |
Expense and net investment income ratios without the effect of the contractual fee waiver were (note 3):
Ratio of expenses to average net assets | 0.72%(3) | 0.70% | 0.67% | 0.72% | 0.72% | 0.70% | ||||||
Ratio of net investment income to average net assets | 1.92%(3) | 1.72% | 1.40% | 1.56% | 1.89% | 2.26% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
129 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class C | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $10.43 | $10.54 | $11.23 | $11.12 | $10.97 | $10.80 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(1) | 0.05 | 0.09 | 0.06 | 0.08 | 0.12 | 0.15 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.42) | (0.10) | (0.69) | 0.11 | 0.15 | 0.17 | ||||||
Total from investment operations | (0.37) | (0.01) | (0.63) | 0.19 | 0.27 | 0.32 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.05) | (0.10) | (0.06) | (0.08) | (0.12) | (0.15) | ||||||
Distributions from capital gains | — | –– | –– | –– | — | — | ||||||
Total distributions | (0.05) | (0.10) | (0.06) | (0.08) | (0.12) | (0.15) | ||||||
Net asset value, end of period | $10.01 | $10.43 | $10.54 | $11.23 | $11.12 | $10.97 | ||||||
Total return (not reflecting CDSC) | (3.51)%(2) | (0.11)% | (5.62)% | 1.72% | 2.43% | 3.02% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $3 | $3 | $7 | $13 | $16 | $20 | ||||||
Ratio of expenses to average net assets | 1.56%(3) | 1.55% | 1.51% | 1.56% | 1.56% | 1.54% | ||||||
Ratio of net investment income to average net assets | 1.07%(3) | 0.85% | 0.56% | 0.73% | 1.05% | 1.42% | ||||||
Portfolio turnover rate | 9%(2) | 12% | 13% | 5% | 12% | 10% |
Expense and net investment income ratios without the effect of the contractual fee waiver were (note 3):
Ratio of expenses to average net assets | 1.57%(3) | 1.55% | 1.52% | 1.57% | 1.57% | 1.55% | ||||||
Ratio of net investment income to average net assets | 1.07%(3) | 0.85% | 0.55% | 0.72% | 1.04% | 1.42% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
130 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class F | ||||||||||||
For the | ||||||||||||
Period | ||||||||||||
Six | November 30, | |||||||||||
Months | 2018* | |||||||||||
Ended | through | |||||||||||
9/30/23 | Year Ended March 31, | March 31, | ||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $10.43 | $10.53 | $11.22 | $11.11 | $10.95 | $10.71 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(1) | 0.11 | 0.20 | 0.18 | 0.20 | 0.23 | 0.08 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.43) | (0.10) | (0.69) | 0.11 | 0.16 | 0.24 | ||||||
Total from investment operations | (0.32) | 0.10 | (0.51) | 0.31 | 0.39 | 0.32 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.11) | (0.20) | (0.18) | (0.20) | (0.23) | (0.08) | ||||||
Distributions from capital gains | — | — | — | — | — | — | ||||||
Total distributions | (0.11) | (0.20) | (0.18) | (0.20) | (0.23) | (0.08) | ||||||
Net asset value, end of period | $10.00 | $10.43 | $10.53 | $11.22 | $11.11 | $10.95 | ||||||
Total return | (3.11)%(2) | 1.02% | (4.64)% | 2.77% | 3.58% | 3.03%(2) | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $7 | $6 | $5 | $4 | $2 | $1 | ||||||
Ratio of expenses to average net assets | 0.54%(3) | 0.52% | 0.48% | 0.53% | 0.53% | 0.54%(3) | ||||||
Ratio of net investment income to average net assets | 2.09%(3) | 1.91% | 1.59% | 1.73% | 2.05% | 2.36%(3) | ||||||
Portfolio turnover rate | 9%(2) | 12% | 13% | 5% | 12% | 10%(3) |
Expense and net investment income ratios without the effect of the contractual fee waiver were (note 3):
Ratio of expenses to average net assets | 0.54%(3) | 0.53% | 0.49% | 0.54% | 0.54% | 0.55%(3) | ||||||
Ratio of net investment income to average net assets | 2.09%(3) | 1.90% | 1.58% | 1.72% | 2.04% | 2.35%(3) |
* Commencement of operations.
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
131 | Aquila Municipal Trust
AQUILA TAX-FREE TRUST OF OREGON FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class Y | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $10.44 | $10.55 | $11.24 | $11.12 | $10.97 | $10.80 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(1) | 0.11 | 0.19 | 0.17 | 0.19 | 0.23 | 0.26 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.43) | (0.10) | (0.69) | 0.13 | 0.15 | 0.17 | ||||||
Total from investment operations | (0.32) | 0.09 | (0.52) | 0.32 | 0.38 | 0.43 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.11) | (0.20) | (0.17) | (0.20) | (0.23) | (0.26) | ||||||
Distributions from capital gains | — | –– | –– | — | — | — | ||||||
Total distributions | (0.11) | (0.20) | (0.17) | (0.20) | (0.23) | (0.26) | ||||||
Net asset value, end of period | $10.01 | $10.44 | $10.55 | $11.24 | $11.12 | $10.97 | ||||||
Total return | (3.12)%(2) | 0.90% | (4.66)% | 2.83% | 3.46% | 4.05% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $172 | $169 | $238 | $281 | $235 | $213 | ||||||
Ratio of expenses to average net assets | 0.56%(3) | 0.55% | 0.51% | 0.56% | 0.56% | 0.55% | ||||||
Ratio of net investment income to average net assets | 2.07%(3) | 1.87% | 1.56% | 1.71% | 2.04% | 2.42% | ||||||
Portfolio turnover rate | 9%(2) | 12% | 13% | 5% | 12% | 10% |
Expense and net investment income ratios without the effect of the contractual fee waiver were (note 3):
Ratio of expenses to average net assets | 0.57%(3) | 0.55% | 0.52% | 0.57% | 0.57% | 0.55% | ||||||
Ratio of net investment income to average net assets | 2.07%(3) | 1.87% | 1.55% | 1.71% | 2.03% | 2.41% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
132 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND FINANCIAL HIGHLIGHTS |
For a share outstanding throughout each period
Class A | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $10.15 | $10.36 | $11.02 | $10.91 | $10.74 | $10.57 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(1) | 0.10 | 0.20 | 0.20 | 0.23 | 0.25 | 0.26 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.52) | (0.21) | (0.66) | 0.11 | 0.17 | 0.17 | ||||||
Total from investment operations | (0.42) | (0.01) | (0.46) | 0.34 | 0.42 | 0.43 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.10) | (0.20) | (0.20) | (0.23) | (0.25) | (0.26) | ||||||
Distributions from capital gains | — | — | — | — | — | — | ||||||
Total distributions | (0.10) | (0.20) | (0.20) | (0.23) | (0.25) | (0.26) | ||||||
Net asset value, end of period | $9.63 | $10.15 | $10.36 | $11.02 | $10.91 | $10.74 | ||||||
Total return (not reflecting sales charge) | (4.14)%(2) | (0.05)% | (4.26)% | 3.09% | 3.89% | 4.18% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $89 | $100 | $117 | $125 | $120 | $115 | ||||||
Ratio of expenses to average net assets | 0.81%(3) | 0.81% | 0.76% | 0.78% | 0.79% | 0.79% | ||||||
Ratio of net investment income to average net assets | 2.06%(3) | 1.97% | 1.82% | 2.04% | 2.25% | 2.51% | ||||||
Portfolio turnover rate | 5%(2) | 3% | 12% | 7% | 6% | 9% |
Expense and net investment income ratios without the effect of the contractual fee waiver expense cap and/or contractual fee waiver, as well as additional voluntary fee waivers were (note 3):
Ratio of expenses to average net assets | 0.88%(3) | 0.88% | 0.84% | 0.86% | 0.87% | 0.86% | ||||||
Ratio of net investment income to average net assets | 1.99%(3) | 1.90% | 1.75% | 1.96% | 2.17% | 2.43% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
133 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class C | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $10.15 | $10.36 | $11.02 | $10.91 | $10.74 | $10.57 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(1) | 0.06 | 0.11 | 0.11 | 0.13 | 0.15 | 0.17 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.52) | (0.21) | (0.66) | 0.11 | 0.17 | 0.17 | ||||||
Total from investment operations | (0.46) | (0.10) | (0.55) | 0.24 | 0.32 | 0.34 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.06) | (0.11) | (0.11) | (0.13) | (0.15) | (0.17) | ||||||
Distributions from capital gains | — | — | — | –– | — | — | ||||||
Total distributions | (0.06) | (0.11) | (0.11) | (0.13) | (0.15) | (0.17) | ||||||
Net asset value, end of period | $9.63 | $10.15 | $10.36 | $11.02 | $10.91 | $10.74 | ||||||
Total return (not reflecting CDSC) | (4.54)%(2) | (0.90)% | (5.07)% | 2.21% | 3.01% | 3.30% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $1 | $1 | $2 | $3 | $5 | $7 | ||||||
Ratio of expenses to average net assets | 1.66%(3) | 1.65% | 1.61% | 1.64% | 1.65% | 1.63% | ||||||
Ratio of net investment income to average net assets | 1.21%(3) | 1.11% | 0.97% | 1.20% | 1.41% | 1.66% | ||||||
Portfolio turnover rate | 5%(2) | 3% | 12% | 7% | 6% | 9% |
Expense and net investment income ratios without the effect of the contractual fee waiver expense cap and/or contractual fee waiver, as well as additional voluntary fee waivers were (note 3):
Ratio of expenses to average net assets | 1.73%(3) | 1.73% | 1.69% | 1.71% | 1.73% | 1.71% | ||||||
Ratio of net investment income to average net assets | 1.14%(3) | 1.04% | 0.90% | 1.13% | 1.33% | 1.58% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
134 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class F | ||||||||||||
For the | ||||||||||||
Period | ||||||||||||
Six | November 30, | |||||||||||
Months | 2018* | |||||||||||
Ended | through | |||||||||||
9/30/23 | Year Ended March 31, | March 31, | ||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $10.13 | $10.34 | $11.00 | $10.89 | $10.72 | $10.48 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(1) | 0.11 | 0.22 | 0.22 | 0.24 | 0.26 | 0.09 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.52) | (0.21) | (0.66) | 0.11 | 0.17 | 0.24 | ||||||
Total from investment operations | (0.41) | 0.01 | (0.44) | 0.35 | 0.43 | 0.33 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.11) | (0.22) | (0.22) | (0.24) | (0.26) | (0.09) | ||||||
Distributions from capital gains | — | — | — | — | — | — | ||||||
Total distributions | (0.11) | (0.22) | (0.22) | (0.24) | (0.26) | (0.09) | ||||||
Net asset value, end of period | $9.61 | $10.13 | $10.34 | $11.00 | $10.89 | $10.72 | ||||||
Total return | (4.06)%(2) | 0.14% | (4.10)% | 3.27% | 4.08% | 3.18%(2) | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $5 | $5 | $4 | $2 | $1.5 | $0.6 | ||||||
Ratio of expenses to average net assets | 0.64%(3) | 0.62% | 0.58% | 0.60% | 0.61% | 0.63%(3) | ||||||
Ratio of net investment income to average net assets | 2.24%(3) | 2.16% | 1.99% | 2.21% | 2.41% | 2.58%(3) | ||||||
Portfolio turnover rate | 5%(2) | 3% | 12% | 7% | 6% | 9%(3) |
Expense and net investment income ratios without the effect of the contractual fee waiver, as well as additional voluntary fee waivers were (note 3):
Ratio of expenses to average net assets | 0.71%(3) | 0.70% | 0.66% | 0.68% | 0.69% | 0.71%(3) | ||||||
Ratio of net investment income to average net assets | 2.16%(3) | 2.09% | 1.92% | 2.13% | 2.33% | 2.50%(3) |
* Commencement of operations.
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
135 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class I | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $10.16 | $10.37 | $11.03 | $10.91 | $10.74 | $10.56 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(1) | 0.10 | 0.18 | 0.18 | 0.21 | 0.23 | 0.26 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.52) | (0.20) | (0.66) | 0.12 | 0.17 | 0.18 | ||||||
Total from investment operations | (0.42) | (0.02) | (0.48) | 0.33 | 0.40 | 0.44 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.10) | (0.19) | (0.18) | (0.21) | (0.23) | (0.26) | ||||||
Distributions from capital gains | — | — | — | –– | — | — | ||||||
Total distributions | (0.10) | (0.19) | (0.18) | (0.21) | (0.23) | (0.26) | ||||||
Net asset value, end of period | $9.64 | $10.16 | $10.37 | $11.03 | $10.91 | $10.74 | ||||||
Total return | (4.20)%(2) | (0.18)% | (4.39)% | 3.03% | 3.74% | 4.24% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $0.1 | $0.1 | $0.3 | $0.3 | $0.2 | $0.2 | ||||||
Ratio of expenses to average net assets | 0.95%(3) | 0.94% | 0.91% | 0.93% | 0.94% | 0.83% | ||||||
Ratio of net investment income to average net assets | 1.92%(3) | 1.82% | 1.67% | 1.89% | 2.10% | 2.47% | ||||||
Portfolio turnover rate | 5%(2) | 3% | 12% | 7% | 6% | 9% |
Expense and net investment income ratios without the effect of the contractual fee waiver expense cap and/or contractual fee waiver, as well as additional voluntary fee waivers were (note 3):
Ratio of expenses to average net assets | 1.03%(3) | 1.01% | 0.99% | 1.00% | 1.02% | 0.91% | ||||||
Ratio of net investment income to average net assets | 1.84%(3) | 1.75% | 1.60% | 1.81% | 2.02% | 2.39% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
136 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class Y | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $10.15 | $10.36 | $11.02 | $10.91 | $10.74 | $10.57 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(1) | 0.11 | 0.21 | 0.22 | 0.24 | 0.26 | 0.28 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.52) | (0.20) | (0.66) | 0.11 | 0.17 | 0.17 | ||||||
Total from investment operations | (0.41) | 0.01 | (0.44) | 0.35 | 0.43 | 0.45 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.11) | (0.22) | (0.22) | (0.24) | (0.26) | (0.28) | ||||||
Distributions from capital gains | — | — | — | –– | — | — | ||||||
Total distributions | (0.11) | (0.22) | (0.22) | (0.24) | (0.26) | (0.28) | ||||||
Net asset value, end of period | $9.63 | $10.15 | $10.36 | $11.02 | $10.91 | $10.74 | ||||||
Total return | (4.07)%(2) | 0.10% | (4.11)% | 3.24% | 4.05% | 4.34% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $92 | $100 | $126 | $126 | $117 | $105 | ||||||
Ratio of expenses to average net assets | 0.66%(3) | 0.66% | 0.61% | 0.63% | 0.64% | 0.64% | ||||||
Ratio of net investment income to average net assets | 2.21%(3) | 2.12% | 1.97% | 2.19% | 2.40% | 2.66% | ||||||
Portfolio turnover rate | 5%(2) | 3% | 12% | 7% | 6% | 9% |
Expense and net investment income ratios without the effect of the contractual fee waiver expense cap and/or contractual fee waiver, as well as additional voluntary fee waivers were (note 3):
Ratio of expenses to average net assets | 0.73%(3) | 0.73% | 0.69% | 0.71% | 0.72% | 0.72% | ||||||
Ratio of net investment income to average net assets | 2.14%(3) | 2.05% | 1.90% | 2.11% | 2.32% | 2.58% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
137 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH FINANCIAL HIGHLIGHTS |
For a share outstanding throughout each period
Class A | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $9.73 | $9.94 | $10.60 | $10.50 | $10.36 | $10.18 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(1) | 0.11 | 0.20 | 0.18 | 0.21 | 0.24 | 0.26 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.45) | (0.20) | (0.66) | 0.10 | 0.14 | 0.18 | ||||||
Total from investment operations | (0.34) | — | (0.48) | 0.31 | 0.38 | 0.44 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.10) | (0.21) | (0.18) | (0.21) | (0.24) | (0.26) | ||||||
Distributions from capital gains | — | — | — | — | — | — | ||||||
Total distributions | (0.10) | (0.21) | (0.18) | (0.21) | (0.24) | (0.26) | ||||||
Net asset value, end of period | $9.29 | $9.73 | $9.94 | $10.60 | $10.50 | $10.36 | ||||||
Total return (not reflecting sales charge) | (3.47)%(2) | 0.01% | (4.58)% | 2.93% | 3.72% | 4.36% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $154 | $178 | $224 | $252 | $229 | $204 | ||||||
Ratio of expenses to average net assets | 0.89%(3) | 0.87% | 0.82% | 0.85% | 0.88% | 0.86% | ||||||
Ratio of net investment income to average net assets | 2.19%(3) | 2.07% | 1.73% | 1.94% | 2.31% | 2.52% | ||||||
Portfolio turnover rate | 6%(2) | 12% | 19% | 6% | 8% | 14% |
Expense and net investment income ratios without the effect of the contractual fee waiver were (note 3):
Ratio of expenses to average net assets | 0.91%(3) | 0.89% | 0.84% | 0.87% | 0.90% | 0.89% | ||||||
Ratio of net investment income to average net assets | 2.17%(3) | 2.05% | 1.71% | 1.92% | 2.29% | 2.49% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
138 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class C | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $9.73 | $9.94 | $10.60 | $10.49 | $10.35 | $10.17 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(1) | 0.07 | 0.12 | 0.10 | 0.12 | 0.16 | 0.17 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.44) | (0.20) | (0.66) | 0.11 | 0.14 | 0.19 | ||||||
Total from investment operations | (0.37) | (0.08) | (0.56) | 0.23 | 0.30 | 0.36 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.07) | (0.13) | (0.10) | (0.12) | (0.16) | (0.18) | ||||||
Distributions from capital gains | — | — | — | –– | — | — | ||||||
Total distributions | (0.07) | (0.13) | (0.10) | (0.12) | (0.16) | (0.18) | ||||||
Net asset value, end of period | $9.29 | $9.73 | $9.94 | $10.60 | $10.49 | $10.35 | ||||||
Total return (not reflecting CDSC) | (3.85)%(2) | (0.78)% | (5.35)% | 2.21% | 2.90% | 3.53% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $7 | $10 | $16 | $27 | $31 | $37 | ||||||
Ratio of expenses to average net assets | 1.69%(3) | 1.67% | 1.62% | 1.65% | 1.68% | 1.65% | ||||||
Ratio of net investment income to average net assets | 1.38%(3) | 1.26% | 0.93% | 1.14% | 1.52% | 1.72% | ||||||
Portfolio turnover rate | 6%(2) | 12% | 19% | 6% | 8% | 14% |
Expense and net investment income ratios without the effect of the contractual expense cap and/or fee waiver were (note 3)
Ratio of expenses to average net assets | 1.71%(3) | 1.69% | 1.64% | 1.67% | 1.70% | 1.68% | ||||||
Ratio of net investment income to average net assets | 1.36%(3) | 1.24% | 0.90% | 1.12% | 1.50% | 1.69% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
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AQUILA TAX-FREE FUND FOR UTAH FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class F | ||||||||||||
For the | ||||||||||||
Period | ||||||||||||
Six | November 30, | |||||||||||
Months | 2018* | |||||||||||
Ended | through | |||||||||||
9/30/23 | Year Ended March 31, | March 31, | ||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $9.79 | $10.00 | $10.65 | $10.54 | $10.39 | $10.12 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(1) | 0.12 | 0.22 | 0.21 | 0.23 | 0.26 | 0.09 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.45) | (0.20) | (0.65) | 0.11 | 0.16 | 0.27 | ||||||
Total from investment operations | (0.33) | 0.02 | (0.44) | 0.34 | 0.42 | 0.36 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.12) | (0.23) | (0.21) | (0.23) | (0.27) | (0.09) | ||||||
Distributions from capital gains | — | — | — | — | — | — | ||||||
Total distributions | (0.12) | (0.23) | (0.21) | (0.23) | (0.27) | (0.09) | ||||||
Net asset value, end of period | $9.34 | $9.79 | $10.00 | $10.65 | $10.54 | $10.39 | ||||||
Total return (not reflecting sales charge) | (3.43)%(2) | 0.25% | (4.24)% | 3.26% | 4.05% | 3.58%(2) | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $6 | $7 | $11 | $5.3 | $2.0 | $0.7 | ||||||
Ratio of expenses to average net assets | 0.66%(3) | 0.64% | 0.59% | 0.61% | 0.65% | 0.65%(3) | ||||||
Ratio of net investment income to average net assets | 2.42%(3) | 2.30% | 1.96% | 2.15% | 2.51% | 2.71%(3) | ||||||
Portfolio turnover rate | 6%(2) | 12% | 19% | 6% | 8% | 14%(3) |
Expense and net investment income ratios without the effect of the contractual expense cap and/or fee waiver were (note 3):
Ratio of expenses to average net assets | 0.68%(3) | 0.66% | 0.61% | 0.63% | 0.67% | 0.68%(3) | ||||||
Ratio of net investment income to average net assets | 2.40%(3) | 2.28% | 1.93% | 2.12% | 2.49% | 2.68%(3) |
* Commencement of operations.
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
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AQUILA TAX-FREE FUND FOR UTAH FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period
Class Y | ||||||||||||
Six | ||||||||||||
Months | ||||||||||||
Ended | ||||||||||||
9/30/23 | Year Ended March 31, | |||||||||||
(unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||
Net asset value, beginning of period | $9.75 | $9.97 | $10.63 | $10.52 | $10.39 | $10.22 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(1) | 0.11 | 0.22 | 0.20 | 0.23 | 0.26 | 0.28 | ||||||
Net gain (loss) on securities (both realized and unrealized) | (0.44) | (0.21) | (0.66) | 0.11 | 0.14 | 0.17 | ||||||
Total from investment operations | (0.33) | 0.01 | (0.46) | 0.34 | 0.40 | 0.45 | ||||||
Less distributions (note 9): | ||||||||||||
Dividends from net investment income | (0.11) | (0.23) | (0.20) | (0.23) | (0.27) | (0.28) | ||||||
Distributions from capital gains | — | — | — | –– | — | — | ||||||
Total distributions | (0.11) | (0.23) | (0.20) | (0.23) | (0.27) | (0.28) | ||||||
Net asset value, end of period | $9.31 | $9.75 | $9.97 | $10.63 | $10.52 | $10.39 | ||||||
Total return (not reflecting sales charge) | (3.36)%(2) | 0.12% | (4.38)% | 3.23% | 3.82% | 4.46% | ||||||
Ratios/supplemental data | ||||||||||||
Net assets, end of period (in millions) | $133 | $137 | $186 | $195 | $154 | $136 | ||||||
Ratio of expenses to average net assets | 0.69%(3) | 0.67% | 0.62% | 0.65% | 0.68% | 0.66% | ||||||
Ratio of net investment income to average net assets | 2.39%(3) | 2.27% | 1.93% | 2.14% | 2.51% | 2.72% | ||||||
Portfolio turnover rate | 6%(2) | 12% | 19% | 6% | 8% | 14% |
Expense and net investment income ratios without the effect of the contractual expense cap and/or fee waiver were (note 3):
Ratio of expenses to average net assets | 0.71%(3) | 0.69% | 0.64% | 0.67% | 0.70% | 0.69% | ||||||
Ratio of net investment income to average net assets | 2.37%(3) | 2.25% | 1.91% | 2.11% | 2.49% | 2.69% |
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
141 | Aquila Municipal Trust
Additional Information (unaudited):
Statement Regarding Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended, requires open-end management investment companies to adopt and implement written liquidity risk management programs that are reasonably designed to assess and manage liquidity risk. Liquidity risk is defined in the rule as the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund. In accordance with Rule 22e-4, Aquila Municipal Trust (“AMT”) has adopted a Liquidity Risk Management (“LRM”) program (the “program”). AMT’s Board of Trustees (the “Board”) has designated an LRM Committee consisting of employees of Aquila Investment Management LLC as the administrator of the program (the “Committee”).
The Board met on June 2, 2023 to review the program. At the meeting, the Committee provided the Board with a report that addressed the operation of the program and assessed its adequacy and effectiveness of implementation, and any material changes to the program (the “Report”). The Report covered the period from May 1, 2022 through April 30, 2023 (the “Reporting Period”).
During the Reporting Period, the Committee reviewed whether each Fund’s strategy is appropriate for an open-end fund structure taking into account less liquid and illiquid assets.
The Committee reviewed each Fund’s short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. In classifying and reviewing each Fund’s investments, the Committee considered whether trading varying portions of a position in a particular portfolio investment or asset class in sizes the Fund would reasonably anticipate trading, would be reasonably expected to significantly affect liquidity. The Committee considered the following information when determining the sizes in which each Fund would reasonably anticipate trading: historical net redemption activity, the Fund’s concentration in an issuer, shareholder concentration, Fund performance, Fund size, and distribution channels.
The Committee considered each Fund’s holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered the terms of the credit facility applicable to the Funds, the financial health of the institution providing the facility and the fact that the credit facility is shared among multiple Funds. The Committee also considered other types of borrowing available to the Funds, such as the ability to use interfund lending arrangements.
The Committee also performed an analysis to determine whether a Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”), and determined that the requirement to maintain an HLIM was inapplicable to the Funds because each Fund primarily holds highly liquid investments.
There were no material changes to the program during the Reporting Period. The Report provided to the Board stated that the Committee concluded that the program is reasonably designed and operated effectively throughout the Review Period.
142 | Aquila Municipal Trust
Additional Information (unaudited):
Aquila Tax-Free Trust of Arizona (the “Fund”):
Renewal of the Advisory and Administration Agreement
Aquila Investment Management LLC (the “Manager”) serves as the investment adviser to the Fund pursuant to an Advisory and Administration Agreement (the “Advisory Agreement”). In order for the Manager to remain the investment adviser of the Fund, the Trustees of the Fund must determine annually whether to renew the Advisory Agreement for the Fund.
In considering whether to approve the renewal of the Advisory Agreement, the Trustees requested and obtained such information as they deemed reasonably necessary. The independent Trustees met via video conference on September 11, 2023 and in person on September 23, 2023 to review and discuss the contract review materials that were provided in advance of the September 11, 2023 meeting. The Trustees considered, among other things, information presented by the Manager. They also considered information presented in a report prepared by an independent consultant with respect to the Fund’s fees, expenses and investment performance, which included comparisons of the Fund’s investment performance against peers and the Fund’s benchmark and comparisons of the advisory fee payable under the Advisory Agreement against the advisory fees paid by the Fund’s peers (the “Consultant’s Report”). In addition, the Trustees took into account the performance and other information related to the Fund provided to the Trustees at each regularly scheduled meeting. The Trustees also discussed the memorandum provided by Fund counsel that summarized the legal standards and other considerations that are relevant to the Trustees in their deliberations regarding the renewal of the Advisory Agreement.
At the meeting held on September 23, 2023, based on their evaluation of the information provided by the Manager and the independent consultant, the Trustees of the Fund, including the independent Trustees voting separately, unanimously approved the renewal of the Advisory Agreement until September 30, 2024. In considering the renewal of the Advisory Agreement, the Trustees considered various factors that they determined were relevant, including the factors described below. The Trustees did not identify any single factor as the controlling factor in determining to approve the renewal of the Advisory Agreement.
The nature, extent, and quality of the services provided by the Manager
The Trustees considered the nature, extent and quality of the services that had been provided by the Manager to the Fund, taking into account the investment objectives and strategies of the Fund. The Trustees reviewed the terms of the Advisory Agreement.
The Trustees reviewed the Manager’s investment approach for the Fund and its research process. The Trustees considered that the Manager had provided all advisory and administrative services to the Fund that the Trustees deemed necessary or appropriate, including the specific services that the Trustees have determined are required for the Fund, given that it seeks to provide shareholders with as high a level of current income exempt from Arizona state and regular Federal income taxes as is consistent with preservation of capital. The Trustees considered the personnel of the Manager who provide investment management services to the Fund. The Manager has employed Messrs. Tony Tanner, James
143 | Aquila Municipal Trust
Thompson, Royden Durham and Timothy Iltz as portfolio managers for the Fund and has established facilities and capabilities for credit analysis of the Fund’s portfolio securities. They considered that Mr. Tanner, the Fund’s lead portfolio manager, is based in Phoenix, Arizona and that he has a comprehensive understanding regarding the economy of the State of Arizona and the securities in which the Fund invests, including those securities with less than the highest ratings from the rating agencies.
The Trustees noted that the Manager has additionally provided all administrative services to the Fund and provided the Fund with personnel (including Fund officers) and other resources that are necessary for the Fund’s business management and operations. The Trustees considered the nature and extent of the Manager’s supervision of third-party service providers, including the Fund’s fund accountant, shareholder servicing agent and custodian.
Based on these considerations, the Trustees concluded that the nature, extent and quality of services that had been provided by the Manager to the Fund were satisfactory and consistent with the terms of the Advisory Agreement.
The investment performance of the Fund
The Trustees reviewed the Fund’s performance (Class A shares) and compared its performance to the performance of:
· | the funds in the Municipal Single State Intermediate-Term Bond category as assigned by Morningstar, Inc. (the “Morningstar Category”); and |
· | the Fund’s benchmark index, the Bloomberg Municipal Bond: Quality Intermediate Total Return Index Unhedged USD. |
The Trustees considered that the materials included in the Consultant’s Report indicated that the Fund’s average annual total return was higher than the average annual total return of the funds in the Morningstar Category for the one, three, five and ten-year periods, ended June 30, 2023. They noted that the Fund’s return for each of the one, three, ten-year period and six months ended June 30, 2023 was in the second quintile and that its average annual return for the five-year period ended June 30, 2023 was in the third quintile, in each case relative to the funds in the Morningstar Category for the same periods. (Each quintile represents one-fifth of the peer group and first quintile is most favorable to the Fund’s shareholders.) The Trustees further considered that the Fund’s average annual total return was equal to the average annual total return of its benchmark index for the ten-year period, but that the Fund underperformed its benchmark index for the one, three and five-year periods, all as of June 30, 2023. They further noted, as reflected in the Consultant’s Report, that the Fund’s total return for 2022 outperformed the average annual total return of the funds in the Morningstar Category but underperformed the annual return of its benchmark index for 2022.
The Trustees noted that the Fund invests primarily in municipal obligations issued by the State of Arizona, its counties and various other local authorities, while the funds in the Morningstar Category invest in, and the Fund’s benchmark index includes, municipal bonds of issuers throughout the United States and that 1.3% of the benchmark index consists of Arizona bonds (as of June 30, 2023). The Trustees also noted that, unlike the Fund’s returns, the performance of the benchmark index did not reflect any fees or expenses.
144 | Aquila Municipal Trust
The Trustees considered the Fund’s investment performance to be consistent with the investment objectives of the Fund. Evaluation of the investment performance of the Fund indicated to the Trustees that renewal of the Advisory Agreement would be appropriate.
Advisory Fees and Fund Expenses
The Trustees reviewed the Fund’s advisory fees and expenses and compared them to the advisory fee and expense data for the 19 funds in the Fund’s expense group (the “Expense Group”), as selected by the independent consultant (the Fund and 14 other Municipal Single-State Intermediate-Term Bond funds, two Municipal Minnesota Bond funds and two Municipal New Jersey Bond funds, each categorized by Morningstar, Inc. with portfolio assets ranging between $101 million and $600 million). Only front-end load and retail no-load funds were considered for inclusion in the Expense Group. In addition, peer selection for the Expense Group focused on municipal bond funds with an intermediate duration across comparable categories. The Trustees also compared the Fund’s advisory fees and expenses to advisory fee data for the Fund’s Morningstar Category (as defined above). Certain of the peer group comparisons referred to below are organized in quintiles. Each quintile represents one-fifth of the peer group. In all peer group comparisons referred to below, first quintile is most favorable to the Fund’s shareholders.
The Trustees considered that the Fund’s net management fee for its most recent fiscal year was in the third quintile relative to the management fees paid by the other funds in its Expense Group for the comparable period and equal to the median net management fee of the funds in the Expense Group (after giving effect to fee waivers in effect for those funds). They also considered that the Fund’s contractual advisory fee was lower than the average and median contractual advisory fee of the funds in the Morningstar Category (at the Fund’s current asset level).
The Trustees considered that the Fund’s net total expenses for the most recent fiscal year were in the second quintile relative to the net total expenses of the other funds in its Expense Group for the comparable period (after giving effect to fee waivers in effect for those funds).
The Trustees reviewed management fees charged by the Manager to its other clients. It was noted that the Manager does not have any other clients except for other funds in the Aquila Group of Funds. The Trustees noted that, in most instances, the fee rates for those clients were comparable to the fees paid to the Manager with respect to the Fund. In evaluating the fees associated with the other funds, the Trustees took into account the respective demands, resources and complexity associated with the Fund and those funds.
The Trustees concluded that the advisory fee and expenses of the Fund were reasonable in relation to the nature and quality of the services provided by the Manager to the Fund.
Profitability
The Trustees received materials from the Manager related to profitability. The Manager provided information which showed the profitability to the Manager of its services to the Fund, as well as the profitability of Aquila Distributors LLC of distribution services provided to the Fund. The Manager also provided other financial information to
145 | Aquila Municipal Trust
the members of the financial review committee of the Fund and the other funds in the Aquila Group of Funds.
The Trustees considered the information provided by the Manager regarding the profitability of the Manager with respect to the advisory services provided by the Manager to the Fund, including the methodology used by the Manager in allocating certain of its costs to the management of the Fund. The Trustees also considered and discussed the report of the financial review committee of the Fund and the other funds in the Aquila Group of Funds related to the overall financial condition of the Manager and its continuing provision of advisory services to the Fund. The Trustees concluded that profitability to the Manager with respect to the advisory services provided to the Fund did not argue against approval of the fees to be paid under the Advisory Agreement.
The extent to which economies of scale would be realized as the Fund grows
The Trustees considered the extent to which the Manager may realize economies of scale or other efficiencies in managing the Fund. The Trustees considered that the materials indicated that the Fund’s advisory fees are equal to the median advisory fees of the funds in the Expense Group which includes funds with breakpoints in their advisory fee schedules. The Trustees also considered that the Fund’s net total expenses for the most recent fiscal year were in the second quintile relative to the net total expenses of the other funds in its Expense Group for the comparable period (after giving effect to fee waivers in effect for those funds). The Trustees noted that the Manager’s profitability also may be an indicator of the availability of any economies of scale. Accordingly, the Trustees concluded that economies of scale, if any, were being appropriately shared with the Fund.
Benefits derived or to be derived by the Manager and its affiliate from the relationship with the Fund
The Trustees observed that, as is generally true of most fund complexes, the Manager and its affiliate, by providing services to a number of funds including the Fund, were able to spread costs as they would otherwise be unable to do. The Trustees noted that while that produces efficiencies and increased profitability for the Manager and its affiliate, it also makes their services available to the Fund at favorable levels of quality and cost which are more advantageous to the Fund than would otherwise have been possible.
146 | Aquila Municipal Trust
Additional Information (unaudited):
Aquila Tax-Free Fund of Colorado (the “Fund”):
Renewal of the Advisory and Administration Agreement
Aquila Investment Management LLC (the “Manager”) serves as the investment adviser to the Fund pursuant to an Advisory and Administration Agreement (the “Advisory Agreement”). In order for the Manager to remain the investment adviser of the Fund, the Trustees of the Fund must determine annually whether to renew the Advisory Agreement for the Fund.
In considering whether to approve the renewal of the Advisory Agreement, the Trustees requested and obtained such information as they deemed reasonably necessary. The independent Trustees met via video conference on September 11, 2023 and in person on September 23, 2023 to review and discuss the contract review materials that were provided in advance of the September 11, 2023 meeting. The Trustees considered, among other things, information presented by the Manager. They also considered information presented in a report prepared by an independent consultant with respect to the Fund’s fees, expenses and investment performance, which included comparisons of the Fund’s investment performance against peers and the Fund’s benchmark and comparisons of the advisory fee payable by the Fund under the Advisory Agreement against the advisory fees paid by the Fund’s peers (the “Consultant’s Report”). In addition, the Trustees took into account the performance and other information related to the Fund provided to the Trustees at each regularly scheduled meeting. The Trustees also discussed the memorandum provided by Fund counsel that summarized the legal standards and other considerations that are relevant to the Trustees in their deliberations regarding the renewal of the Advisory Agreement.
At the meeting held on September 23, 2023, based on their evaluation of the information provided by the Manager, and the independent consultant, the Trustees of the Fund present at the meeting, including the independent Trustees voting separately, unanimously approved the renewal of the Advisory Agreement until September 30, 2024. In considering the renewal of the Advisory Agreement, the Trustees considered various factors that they determined were relevant, including the factors described below. The Trustees did not identify any single factor as the controlling factor in determining to approve the renewal of the Advisory Agreement.
The nature, extent, and quality of the services provided by the Manager
The Trustees considered the nature, extent and quality of the services that had been provided by the Manager to the Fund, taking into account the investment objectives and strategies of the Fund. The Trustees reviewed the terms of the Advisory Agreement.
The Trustees reviewed the Manager’s investment approach for the Fund and its research process. The Trustees considered that the Manager had provided all advisory and administrative services to the Fund that the Trustees deemed necessary or appropriate, including the specific services that the Trustees have determined are required for the Fund, given that it seeks to provide shareholders with as high a level of current income exempt from Colorado state and regular Federal income taxes as is consistent with preservation of
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capital. The Trustees considered the personnel of the Manager who provide investment management services to the Fund. The Manager has employed Messrs. Royden Durham, Vasilios Gerasopoulos and Timothy Iltz as portfolio managers for the Fund and has established facilities and capabilities for credit analysis of the Fund’s portfolio securities. Mr. Timothy Iltz, a portfolio manager of the Manager and Vice President of the Fund, has served as a portfolio manager of the Fund since December 19, 2022. Prior to March 6, 2023, Mr. Iltz served as a portfolio manager of the Fund as an employee of the Fund’s former sub-adviser. Mr. Royden Durham, Vice President of the Fund, has served as a portfolio manager of the Fund since March 6, 2023. Mr. Vasilios Gerasopoulos, an associate portfolio manager of the Manager and Assistant Vice President of the Fund, has served as a portfolio manager of the Fund since March 6, 2023.
The Trustees considered that the Manager had provided all advisory services to the Fund that the Trustees deemed necessary or appropriate, including the specific services that the Trustees have determined are required for the Fund, given that it seeks to provide shareholders with as high a level of current income exempt from Colorado state and regular Federal income taxes as is consistent with preservation of capital.
The Trustees also noted that the Manager has additionally provided all administrative services to the Fund and provided the Fund with personnel (including Fund officers) and other resources that are necessary for the Fund’s business management and operations. The Trustees considered the nature and extent of the Manager’s supervision of third-party service providers, including the Fund’s fund accountant, shareholder servicing agent and custodian.
Based on these considerations, the Trustees concluded that the nature, extent and quality of services that had been provided by the Manager to the Fund were satisfactory and consistent with the terms of the Advisory Agreement.
The investment performance of the Fund
The Trustees reviewed the Fund’s performance (Class A Shares) and compared its performance to the performance of:
· | the funds in the Municipal Single State Intermediate-Term Bond category as assigned by Morningstar, Inc. (the “Morningstar Category”); and |
· | the Fund’s benchmark index, the Bloomberg Municipal Bond: Quality Intermediate Total Return Index Unhedged USD. |
The Trustees considered that the materials included in the Consultant’s Report indicated that the Fund’s average annual total return was lower than the average annual total return of the funds in the Morningstar Category for the one, three, five and ten-year periods ended June 30, 2023. They noted that the Fund’s average annual return for the ten-year period ended June 30, 2023 was in the third quintile and that its average annual return for each of the one, three and five-year periods ended June 30, 2023 was in the fourth quintile, in each case relative to the funds in the Morningstar Category for the same periods. (Each quintile represents one-fifth of the peer group and first quintile is most favorable to the Fund’s shareholders.) The Trustees further considered that the Fund’s
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average annual return underperformed the average annual total return of the benchmark index for the one, three, five and ten-year periods ended June 30, 2023. The Trustees further noted, as reflected in the Consultant’s Report, that the Fund’s total return for 2022 outperformed the average annual total return of the funds in the Morningstar Category but underperformed the total return of its benchmark index for 2022.
The Trustees considered that the Fund invests primarily in municipal obligations issued by the State of Colorado, its counties and various other local authorities, while the funds in the Morningstar Category invest in, and the Fund’s benchmark index includes, municipal bonds of issuers throughout the United States and that less than 2.1% of the benchmark index consists of Colorado bonds (as of June 30, 2023). The Trustees noted that, unlike the Fund’s returns, the performance of the benchmark index did not reflect any fees, expenses or sales charges.
The Trustees discussed the Fund’s performance record with the Manager and considered the Manager’s view that the Fund’s performance, as compared to its peer group, was explained in part by the Fund’s somewhat higher-quality portfolio and lower duration. The Trustees considered that the Manager assumed the day-to-day investment management of the Fund on March 6, 2023. The Trustees also considered the steps taken by the Manager in recent months in an effort to improve the Fund’s investment performance.
The Trustees considered the Fund’s investment performance to be consistent with the investment objectives of the Fund. Evaluation of the investment performance of the Fund indicated to the Trustees that renewal of the Advisory Agreement would be appropriate.
Advisory Fees and Fund Expenses
The Trustees reviewed the Fund’s advisory fees and expenses and compared them to the advisory fee and expense data for the 19 funds in the Fund’s expense group (the “Expense Group”), as selected by the independent consultant (the Fund and 13 other Municipal Single-State Intermediate-Term Bond funds, one Municipal Massachusetts Bond fund, two Municipal Minnesota Bond funds, and two Municipal New Jersey Bond funds, each categorized by Morningstar, Inc. with portfolio assets ranging between $101 million and $600 million). Only front-end load and retail no-load funds were considered for inclusion in the Expense Group. In addition, peer selection for the Expense Group focused on municipal bond funds with an intermediate duration across comparable categories. The Trustees also compared the Fund’s advisory fees and expenses to advisory fee data for the Fund’s Morningstar Category (as defined above). Certain of the peer group comparisons referred to below are organized in quintiles. Each quintile represents one-fifth of the peer group. In all peer group comparisons referred to below, first quintile is most favorable to the Fund’s shareholders.
The Trustees considered that the Fund’s net management fee (after giving effect to the fee waiver) for its most recent fiscal year was in the fourth quintile relative to the management fees paid by the other funds in its Expense Group for the comparable period (after giving effect to fee waivers in effect for those funds). They also considered that
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the Fund’s contractual advisory fee was higher than the average and median contractual advisory fee of the funds in the Morningstar Category (at the Fund’s current asset level and all asset levels up to $10 billion).
The Trustees considered that the Fund’s net total expenses (for Class A shares), after giving effect to fee waivers and expense reimbursements, for the most recent fiscal year were in the second quintile relative to the net total expenses of the other funds in its Expense Group for the comparable period (after giving effect to fee waivers and expense reimbursements in effect for those funds).
It was noted that the Manager has contractually agreed to waive fees to the extent necessary so that the annual rate payable under the Advisory Agreement shall be equivalent to 0.48% on the Fund’s net assets up to $400 million; 0.46% on assets above that amount to $1 billion in net assets and 0.44% on net assets thereafter. This contractual undertaking is in effect until September 30, 2024. The Manager may not terminate the arrangement without the approval of the Board of Trustees.
The Trustees reviewed management fees charged by the Manager to its other clients. It was noted that the Manager does not have any other clients except for other funds in the Aquila Group of Funds. The Trustees noted that, in most instances, the fee rates for those clients were comparable to the fees paid to the Manager with respect to the Fund. In evaluating the fees associated with the other funds, the Trustees took into account the respective demands, resources and complexity associated with the Fund and those funds.
The Trustees concluded that the advisory fees were reasonable in relation to the nature and quality of the services provided to the Fund by the Manager.
Profitability
The Trustees received materials from the Manager related to profitability. The Manager provided information which showed the profitability to the Manager of its services to the Fund, as well as the profitability of Aquila Distributors LLC of distribution services provided to the Fund. The Manager also provided other financial information to the members of the financial review committee of the Fund and the other funds in the Aquila Group of Funds.
The Trustees considered the information provided by the Manager regarding the profitability of the Manager with respect to the advisory services provided by the Manager to the Fund, including the methodology used by the Manager in allocating certain of its costs to the management of the Fund. The Trustees also considered and discussed the report of the financial review committee of the Fund and the other funds in the Aquila Group of Funds related to the overall financial condition of the Manager and its continuing provision of advisory services to the Fund. The Trustees concluded that profitability to the Manager with respect to advisory services provided to the Fund did not argue against approval of the fees to be paid under the Advisory Agreement.
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The extent to which economies of scale would be realized as the Fund grows
The Trustees considered the extent to which the Manager may realize economies of scale or other efficiencies in managing the Fund. They noted that the Manager has agreed, through a contractual advisory fee waiver, to include breakpoints in its advisory fee schedule based on the size of the Fund. The Trustees noted that the Manager’s profitability also may be an indicator of the availability of any economies of scale. Accordingly, the Trustees concluded that economies of scale, if any, were being appropriately shared with the Fund.
Benefits derived or to be derived by the Manager and its affiliate from the relationship with the Fund
The Trustees observed that, as is generally true of most fund complexes, the Manager and its affiliates, by providing services to a number of funds including the Fund, were able to spread costs as they would otherwise be unable to do. The Trustees noted that while that produces efficiencies and increased profitability for the Manager and its affiliates, it also makes their services available to the Fund at favorable levels of quality and cost which are more advantageous to the Fund than would otherwise have been possible.
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Additional Information (unaudited):
Aquila Churchill Tax-Free Fund of Kentucky (the “Fund”):
Renewal of the Advisory and Administration Agreement
Aquila Investment Management LLC (the “Manager”) serves as the investment adviser to the Fund pursuant to an Advisory and Administration Agreement (the “Advisory Agreement”). In order for the Manager to remain the investment adviser of the Fund, the Trustees of the Fund must determine annually whether to renew the Advisory Agreement for the Fund.
In considering whether to approve the renewal of the Advisory Agreement, the Trustees requested and obtained such information as they deemed reasonably necessary. The independent Trustees met via video conference on September 11, 2023 and in person on September 23, 2023 to review and discuss the contract review materials that were provided in advance of the September 11, 2023 meeting. The Trustees considered, among other things, information presented by the Manager. They also considered information presented in a report prepared by an independent consultant with respect to the Fund’s fees, expenses and investment performance, which included comparisons of the Fund’s investment performance against peers and the Fund’s benchmark and comparisons of the advisory fee payable under the Advisory Agreement against the advisory fees paid by the Fund’s peers (the “Consultant’s Report”). In addition, the Trustees took into account the performance and other information related to the Fund provided to the Trustees at each regularly scheduled meeting. The Trustees also discussed the memorandum provided by Fund counsel that summarized the legal standards and other considerations that are relevant to the Trustees in their deliberations regarding the renewal of the Advisory Agreement.
At the meeting held on September 23, 2023, based on their evaluation of the information provided by the Manager and the independent consultant, the Trustees of the Fund, including the independent Trustees voting separately, unanimously approved the renewal of the Advisory Agreement until September 30, 2024. In considering the renewal of the Advisory Agreement, the Trustees considered various factors that they determined were relevant, including the factors described below. The Trustees did not identify any single factor as the controlling factor in determining to approve the renewal of the Advisory Agreement.
The nature, extent, and quality of the services provided by the Manager
The Trustees considered the nature, extent and quality of the services that had been provided by the Manager to the Fund, taking into account the investment objectives and strategies of the Fund. The Trustees reviewed the terms of the Advisory Agreement.
The Trustees reviewed the Manager’s investment approach for the Fund and its research process. The Trustees considered that the Manager had provided all advisory and administrative services to the Fund that the Trustees deemed necessary or appropriate, including the specific services that the Trustees have determined are required for the Fund, given that it seeks to provide shareholders with as high a level of current income exempt from Kentucky state and regular Federal income taxes as is consistent with preservation of capital. The Trustees considered the personnel of the Manager who provide investment
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management services to the Fund. The Manager has employed Messrs. Royden Durham, Tony Tanner and James Thompson as portfolio managers for the Fund and has established facilities and capabilities for credit analysis of the Fund’s portfolio securities. They considered that Mr. Durham, the Fund’s lead portfolio manager, is based in Louisville, Kentucky and that he has a comprehensive understanding regarding the economy of the State of Kentucky and the securities in which the Fund invests, including those securities with less than the highest ratings from the rating agencies.
The Trustees noted that the Manager has additionally provided all administrative services to the Fund and provided the Fund with personnel (including Fund officers) and other resources that are necessary for the Fund’s business management and operations. The Trustees considered the nature and extent of the Manager’s supervision of third-party service providers, including the Fund’s fund accountant, shareholder servicing agent and custodian.
Based on these considerations, the Trustees concluded that the nature, extent and quality of services that had been provided by the Manager to the Fund were satisfactory and consistent with the terms of the Advisory Agreement.
The investment performance of the Fund
The Trustees reviewed the Fund’s performance (Class A shares) and compared its performance to the performance of:
· | the funds in the Municipal Single State Intermediate-Term Bond category as assigned by Morningstar, Inc. (the “Morningstar Category”); and |
· | the Fund’s benchmark index, the Bloomberg Municipal Bond: Quality Intermediate Total Return Index Unhedged USD. |
The Trustees considered that the materials included in the Consultant’s Report indicated that the Fund’s average annual total return was higher than the average annual total return of the funds in the Morningstar Category for the one, three, five and ten-year periods ended June 30, 2023. They noted that the Fund’s return was in the first quintile for three-year period ended June 30, 2023 and for each of the six months and the one, five and ten-year periods ended June 30, 2023 was in the third quintile, in each case relative to the funds in the Morningstar Category for the same periods. (Each quintile represents one-fifth of the peer group and first quintile is most favorable to the Fund’s shareholders.) The Trustees further considered that the Fund underperformed its benchmark index for the one, three, five and ten-year periods ended June 30, 2023. They further noted, as reflected in the Consultant’s Report, that the Fund’s total return for 2022 outperformed the average annual total return of the funds in the Morningstar Category but underperformed the annual return of its benchmark index for 2022.
The Trustees noted that the Fund invests primarily in municipal obligations issued by the Commonwealth of Kentucky, its counties and various other local authorities, while the funds in the Morningstar Category invest in, and the Fund’s benchmark index includes, municipal bonds of issuers throughout the United States and that less than 1% of the benchmark index consists of Kentucky bonds. The Trustees also noted that, unlike
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the Fund’s returns, the performance of the benchmark index did not reflect any fees or expenses.
The Trustees considered the Fund’s investment performance to be consistent with the investment objectives of the Fund. Evaluation of the investment performance of the Fund indicated to the Trustees that renewal of the Advisory Agreement would be appropriate.
Advisory Fees and Fund Expenses
The Trustees reviewed the Fund’s advisory fees and expenses and compared them to the advisory fee and expense data for the 19 funds in the Fund’s expense group (the “Expense Group”), as selected by the independent consultant (the Fund and 15 other Municipal Single-State Intermediate-Term Bond Funds, one Municipal Massachusetts Bond fund, one Municipal Minnesota Bond fund and one Municipal New Jersey Bond fund, each categorized by Morningstar, Inc. with portfolio assets ranging between $85 million and $288 million). Only front-end load and retail no-load funds were considered for inclusion in the Expense Group. In addition, peer selection focused on municipal bond funds with an intermediate duration across comparable categories. The Trustees also compared the Fund’s advisory fees and expenses to advisory fee data for the Fund’s Morningstar Category (as defined above). Certain of the peer group comparisons referred to below are organized in quintiles. Each quintile represents one-fifth of the peer group. In all peer group comparisons referred to below, first quintile is most favorable to the Fund’s shareholders.
The Trustees considered that the Fund’s net management fee for its most recent fiscal year was in the third quintile relative to the management fees paid by the other funds in its Expense Group for the comparable period and equal to the median net management fee of the funds in the Expense Group (after giving effect to fee waivers in effect for those funds). They also considered that the Fund’s contractual advisory fee was lower than the average and median contractual advisory fees of the funds in the Morningstar Category (at the Fund’s current asset level).
The Trustees considered that the Fund’s net total expenses for the most recent fiscal year were lower than the median net total expenses of the other funds in its Expense Group for the comparable period (after giving effect to fee waivers in effect for those funds).
The Trustees reviewed management fees charged by the Manager to its other clients. It was noted that the Manager does not have any other clients except for other funds in the Aquila Group of Funds. The Trustees noted that in most instances the fee rates for those clients were comparable to the fees paid to the Manager with respect to the Fund. In evaluating the fees associated with the other funds, the Trustees took into account the respective demands, resources and complexity associated with the Fund and those funds.
The Trustees concluded that the advisory fee and expenses of the Fund were reasonable in relation to the nature and quality of the services provided by the Manager to the Fund.
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Profitability
The Trustees received materials from the Manager elated to profitability. The Manager provided information which showed the profitability to the Manager of its services to the Fund, as well as the profitability of Aquila Distributors LLC of distribution services provided to the Fund. The Manager also provided other financial information to the members of the financial review committee of the Fund and the other funds in the Aquila Group of Funds.
The Trustees considered the information provided by the Manager regarding the profitability of the Manager with respect to the advisory services provided by the Manager to the Fund, including the methodology used by the Manager in allocating certain of its costs to the management of the Fund. The Trustees also considered and discussed the report of the financial review committee of the Fund and the other funds in the Aquila Group of Funds related to the overall financial condition of the Manager and its continuing provision of advisory services to the Fund. The Trustees concluded that profitability to the Manager with respect to the advisory services provided to the Fund did not argue against approval of the fees to be paid under the Advisory Agreement.
The extent to which economies of scale would be realized as the Fund grows
The Trustees considered the extent to which the Manager may realize economies of scale or other efficiencies in managing the Fund. The Trustees considered that the materials indicated that the Fund’s net total expenses are lower than the median net total expenses of its peers, including those funds with breakpoints. The Trustees noted that the Manager’s profitability also may be an indicator of the availability of any economies of scale. Accordingly, the Trustees concluded that economies of scale, if any, were being appropriately shared with the Fund.
Benefits derived or to be derived by the Manager and its affiliate from the relationship with the Fund
The Trustees observed that, as is generally true of most fund complexes, the Manager and its affiliates, by providing services to a number of funds including the Fund, were able to spread costs as they would otherwise be unable to do. The Trustees noted that while that produces efficiencies and increased profitability for the Manager and its affiliates, it also makes their services available to the Fund at favorable levels of quality and cost which are more advantageous to the Fund than would otherwise have been possible.
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Additional Information (unaudited):
Aquila Tax-Free Trust of Oregon (the “Fund”):
Renewal of the Advisory and Administration Agreement
Aquila Investment Management LLC (the “Manager”) serves as the investment adviser to the Fund pursuant to an Advisory and Administration Agreement (the “Advisory Agreement”). In order for the Manager to remain the investment adviser of the Fund, the Trustees of the Fund must determine annually whether to renew the Advisory Agreement for the Fund.
In considering whether to approve the renewal of the Advisory Agreement, the Trustees requested and obtained such information as they deemed reasonably necessary. The independent Trustees met via video conference on September 11, 2023 and in person on September 23, 2023 to review and discuss the contract review materials that were provided in advance of the September 11, 2023 meeting. The Trustees considered, among other things, information presented by the Manager. They also considered information presented in a report prepared by an independent consultant with respect to the Fund’s fees, expenses and investment performance, which included comparisons of the Fund’s investment performance against peers and the Fund’s benchmark and comparisons of the advisory fee payable by the Fund under the Advisory Agreement against the advisory fees paid by the Fund’s peers (the “Consultant’s Report”). In addition, the Trustees took into account the performance and other information related to the Fund provided to the Trustees at each regularly scheduled meeting. The Trustees also discussed the memorandum provided by Fund counsel that summarized the legal standards and other considerations that are relevant to the Trustees in their deliberations regarding the renewal of the Advisory Agreement.
At the meeting held on September 23, 2023, based on their evaluation of the information provided by the Manager and the independent consultant, the Trustees of the Fund, including the independent Trustees voting separately, unanimously approved the renewal of the Advisory Agreement until September 30, 2024. In considering the renewal of the Advisory Agreement, the Trustees considered various factors, including the factors described below. The Trustees did not identify any single factor as the controlling factor in determining to approve the renewal of the Advisory Agreement.
The nature, extent, and quality of the services provided by the Manager
The Trustees considered the nature, extent and quality of the services that had been provided by the Manager to the Fund, taking into account the investment objectives and strategies of the Fund. The Trustees reviewed the terms of the Advisory Agreement.
The Trustees reviewed the Manager’s investment approach for the Fund and its research process. The Trustees considered that the Manager had provided all advisory and administrative services to the Fund that the Trustees deemed necessary or appropriate, including the specific services that the Trustees have determined are required for the Fund, given that it seeks to provide shareholders with as high a level of current income exempt from Oregon state and regular Federal income taxes as is consistent with preservation of capital. The Trustees considered the personnel of the Manager who provide investment
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management services to the Fund. The Manager has employed Messrs. Timothy Iltz, Anthony Tanner and James Thompson as portfolio managers for the Fund and has established facilities and capabilities for credit analysis of the Fund’s portfolio securities. Mr. Timothy Iltz, a portfolio manager of the Manager and Vice President of the Fund, is the Fund’s lead portfolio manager. He has served as a portfolio manager of the Fund since 2018. Prior to March 6, 2023, he served as a portfolio manager of the Fund as an employee of the Fund’s former sub-adviser. Mr. Anthony Tanner, Vice President of the Fund, has served as a portfolio manager of the Fund since March 6, 2023. Mr. James Thompson, Vice President of the Fund, has served as a portfolio manager of the Fund since March 6, 2023. Mr. Thompson plans to retire as a portfolio manager on December 31, 2023. The Trustees noted that, compared to other Oregon state-specific municipal bond-funds, the portfolio of the Fund generally was of higher quality, and that the Fund did not hold any securities subject to the alternative minimum tax or any securities issued by a U.S. territory.
The Trustees also noted that the Manager has additionally provided all administrative services to the Fund and provided the Fund with personnel (including Fund officers) and other resources that are necessary for the Fund’s business management and operations. The Trustees considered the nature and extent of the Manager’s supervision of third-party service providers, including the Fund’s fund accountant, shareholder servicing agent and custodian.
Based on these considerations, the Trustees concluded that the nature, extent and quality of services that had been provided by the Manager to the Fund were satisfactory and consistent with the terms of the Advisory Agreement.
The investment performance of the Fund
The Trustees reviewed the Fund’s performance (Class A shares) and compared its performance to the performance of:
· | the funds in the Municipal Single State Intermediate-Term Bond category as assigned by Morningstar, Inc. (the “Morningstar Category”); and |
· | the Fund’s benchmark index, the Bloomberg Municipal Bond: Quality Intermediate Total Return Index Unhedged USD. |
The Trustees considered that the materials included in the Consultant’s Report indicated that the Fund’s average annual total return was lower than the average annual total return of the funds in the Morningstar Category for the three, five, and ten-year periods ended June 30, 2023, but higher than average annual total return of the funds in the Morningstar Category for the one-year period ended June 30, 2023. They noted that the Fund’s average annual return for the one-year period ended June 30, 2023 was in the third quintile and that its average annual return for each of the three, five and ten-year periods ended June 30, 2023 was in the fourth quintile, in each case relative to the funds in the Morningstar Category for the same periods. (Each quintile represents one-fifth of the peer group and first quintile is most favorable to the Fund’s shareholders.) The Trustees further considered that the Fund’s average annual return was lower than
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the average annual return of the benchmark index for the one, three, five and ten-year periods ended June 30, 2023. The Trustees further noted, as reflected in the Consultant’s Report, that the Fund’s total return for 2022 outperformed the average total return of the funds in the Morningstar Category but underperformed the total return of its benchmark index for 2022.
The Trustees noted that the Fund invests primarily in municipal obligations issued by the State of Oregon, its counties and various other local authorities, while the funds in the Morningstar Category invest in, and the Fund’s benchmark index includes, municipal bonds of issuers throughout the United States and its territories and that only 1.1% of the benchmark index consists of Oregon bonds (as of June 30, 2023). The Trustees noted that, unlike the Fund’s returns, the performance of the benchmark index did not reflect any fees or expenses.
The Trustees discussed the Fund’s performance record with the Manager and considered the Manager’s view that the Fund’s performance, as compared to its peer group, was explained in part by the Fund’s generally higher-quality portfolio and lower duration. The Trustees considered that the Manager assumed the day-to-day investment management of the Fund on March 6, 2023. The Trustees also considered the steps taken by the Manager in recent months in an effort to improve the Fund’s investment performance.
The Trustees considered the Fund’s investment performance to be consistent with the investment objectives of the Fund. Evaluation of this factor indicated to the Trustees that renewal of the Advisory Agreement would be appropriate.
Advisory Fees and Fund Expenses
The Trustees reviewed the Fund’s advisory fees and expenses and compared them to the advisory fee and expense data for the 18 funds in the Fund’s expense group (the “Expense Group”), as selected by the independent consultant (the Fund and 14 other Municipal Single-State Intermediate-Term Bond funds, one Municipal Minnesota Bond funds and two Municipal New Jersey Bond funds, each categorized by Morningstar, Inc. with portfolio assets ranging between $123 million and $972 million). Only front-end load and retail no-load funds were considered for inclusion in the Expense Group. In addition, peer selection focused on municipal bond funds with an intermediate duration across comparable categories. The Trustees also compared the Fund’s advisory fees and expenses to advisory fee data for the Fund’s Morningstar Category (as defined above). Certain of the peer group comparisons referred to below are organized in quintiles. Each quintile represents one-fifth of the peer group. In all peer group comparisons referred to below, first quintile is most favorable to the Fund’s shareholders.
The Trustees considered that the Fund’s net management fee (after giving effect to fee waivers) for its most recent fiscal year was in the second quintile relative to the management fees paid by the other funds in its Expense Group for the comparable period (after giving effect to fee waivers in effect for those funds). They also considered that the Fund’s contractual advisory fee was lower than the average and median contractual advisory fee of the funds in the Morningstar Category at the Fund’s current asset level.
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The Trustees considered that the Fund’s net total expenses (for Class A Shares) after giving effect to fee waivers and expense reimbursements, for the most recent fiscal year were in the second quintile relative to the net total expenses of the other funds in its Expense Group for the comparable period (after giving effect to fee waivers in effect for those funds).
It was noted that the Manager has contractually agreed to waive fees to the extent necessary so that the annual rate payable under the Advisory Agreement shall be equivalent to 0.40% on the Fund’s net assets up to $400 million; 0.38% on assets above that amount to $1 billion in net assets and 0.36% on net assets thereafter. This contractual undertaking is in effect until September 30, 2024. The Manager may not terminate the arrangement without the approval of the Board of Trustees.
The Trustees reviewed management fees charged by the Manager to its other clients. It was noted that the Manager does not have any other clients except for other funds in the Aquila Group of Funds. The Trustees noted that, in most instances, the fee rates for those clients were comparable to the fees paid to the Manager with respect to the Fund. In evaluating the fees associated with the other funds, the Trustees took into account the respective demands, resources and complexity associated with the Fund and those funds.
The Trustees concluded that the advisory fees were reasonable in relation to the nature and quality of the services provided to the Fund by the Manager.
Profitability
The Trustees received materials from the Manager related to profitability. The Manager provided information which showed the profitability to the Manager of its services to the Fund, as well as the profitability of Aquila Distributors LLC of distribution services provided to the Fund. The Manager also provided other financial information to the members of the financial review committee of the Fund and the other funds in the Aquila Group of Funds.
The Trustees considered the information provided by the Manager regarding the profitability of the Manager with respect to the advisory services provided by the Manager to the Fund, including the methodology used by the Manager in allocating certain of its costs to the services provided to the Fund, as well as the other financial information provided to the financial review committee. The Trustees also considered and discussed the report of the financial review committee of the Fund and the other funds in the Aquila Group of Funds related to the overall financial condition of the Manager and its continuing provision of advisory services to the Fund. The Trustees concluded that profitability to the Manager with respect to advisory services provided to the Fund did not argue against approval of the fees to be paid under the Advisory Agreement.
The extent to which economies of scale would be realized as the Fund grows
The Trustees considered the extent to which the Manager may realize economies of scale or other efficiencies in managing the Fund. They noted that the Manager has agreed, through a contractual advisory fee waiver, to include breakpoints in its advisory fee schedule based on the size of the Fund. The Trustees noted that the Manager’s profitability
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also may be an indicator of the availability of any economies of scale. Accordingly, the Trustees concluded that economies of scale, if any, were being appropriately shared with the Fund.
Benefits derived or to be derived by the Manager and its affiliate from the relationship with the Fund
The Trustees observed that, as is generally true of most fund complexes, the Manager and its affiliates, by providing services to a number of funds including the Fund, were able to spread costs as they would otherwise be unable to do. The Trustees noted that while that produces efficiencies and increased profitability for the Manager and its affiliates, it also makes their services available to the Fund at favorable levels of quality and cost which are more advantageous to the Fund than would otherwise have been possible.
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Additional Information (unaudited):
Aquila Narragansett Tax-Free Income Fund (the “Fund”):
Renewal of the Advisory and Administration Agreement and the Sub-Advisory Agreement
Aquila Investment Management LLC (the “Manager”) serves as the investment adviser to the Fund pursuant to an Advisory and Administration Agreement (the “Advisory Agreement”). The Manager has retained Clarfeld Financial Advisors, LLC, a wholly-owned subsidiary of Citizens Bank, N.A. (the “Sub-Adviser”) to serve as the sub-adviser to the Fund pursuant to a Sub-Advisory Agreement between the Manager and the Sub-Adviser (the “Sub-Advisory Agreement”). In order for the Manager and the Sub-Adviser to continue to serve in their respective roles, the Trustees of the Fund must determine annually whether to renew the Advisory Agreement and the Sub-Advisory Agreement for the Fund.
In considering whether to approve the renewal of the Advisory Agreement and the Sub-Advisory Agreement, the Trustees requested and obtained such information as they deemed reasonably necessary. The independent Trustees met via video conference on September 11, 2023 and in person on September 23, 2023 to review and discuss the contract review materials that were provided in advance of the September 11, 2023 meeting. The Trustees considered, among other things, information presented by the Manager and the Sub-Adviser. They also considered information presented in a report prepared by an independent consultant with respect to the Fund’s fees, expenses and investment performance, which included comparisons of the Fund’s investment performance against peers and the Fund’s benchmark and comparisons of the advisory fee payable by the Fund under the Advisory Agreement against the advisory fees paid by the Fund’s peers (the “Consultant’s Report”). In addition, the Trustees took into account the performance and other information related to the Fund provided to the Trustees at each regularly scheduled meeting. The Trustees considered the Advisory Agreement and the Sub-Advisory Agreement separately as well as in conjunction with each other to determine their combined effects on the Fund. The Trustees also discussed the memorandum provided by Fund counsel that summarized the legal standards and other considerations that are relevant to the Trustees in their deliberations regarding the renewal of the Advisory and Sub-Advisory Agreements.
At the meeting held on September 23, 2023, based on their evaluation of the information provided by the Manager, the Sub-Adviser and the independent consultant, the Trustees of the Fund present at the meeting, including the independent Trustees voting separately, unanimously approved the renewal of each of the Advisory Agreement and the Sub-Advisory Agreement until September 30, 2024.
In considering the renewal of the Advisory Agreement and the Sub-Advisory Agreement, the Trustees considered various factors that they determined were relevant, including the factors described below. The Trustees did not identify any single factor as the controlling factor in determining to approve the renewal of the Advisory Agreement or the Sub-Advisory Agreement.
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The nature, extent, and quality of the services provided by the Manager and the Sub-Adviser.
The Trustees considered the nature, extent and quality of the services that had been provided by the Manager and the Sub-Adviser to the Fund, taking into account the investment objectives and strategies of the Fund. The Trustees reviewed the terms of the Advisory Agreement and the Sub-Advisory Agreement.
The Manager has retained the Sub-Adviser to provide investment management of the Fund’s portfolio. The Trustees reviewed the Sub-Adviser’s investment approach for the Fund. The Trustees considered the personnel of the Sub-Adviser who provide investment management services to the Fund. The Trustees noted the extensive experience of the Sub-Adviser’s portfolio manager, Mr. Jeffrey Hanna. They considered that Mr. Hanna is based in Providence, Rhode Island and that he has a comprehensive understanding regarding the economy of the State of Rhode Island and the securities in which the Fund invests, including those securities with less than the highest ratings from the rating agencies.
The Trustees considered that the Manager supervised and monitored the performance of the Sub-Adviser. The Trustees also considered that the Manager and the Sub-Adviser had provided all advisory services to the Fund that the Trustees deemed necessary or appropriate, including the specific services that the Trustees have determined are required for the Fund, given that it seeks to provide shareholders with as high a level of current income exempt from Rhode Island state and regular Federal income taxes as is consistent with preservation of capital.
The Trustees also noted that the Manager has additionally provided all administrative services to the Fund and provided the Fund with personnel (including Fund officers) and other resources that are necessary for the Fund’s business management and operations. The Trustees considered the nature and extent of the Manager’s supervision of third-party service providers, including the Fund’s fund accountant, shareholder servicing agent and custodian.
Based on these considerations, the Trustees concluded that the nature, extent and quality of services that had been provided by the Manager and the Sub-Adviser to the Fund were satisfactory and consistent with the terms of the Advisory Agreement and Sub-Advisory Agreement, respectively.
The investment performance of the Fund.
The Trustees reviewed the Fund’s performance (Class A shares) and compared its performance to the performance of:
· | the funds in the Municipal Single State Intermediate-Term Bond category as assigned by Morningstar, Inc. (the “Morningstar Category”); and |
· | the Fund’s benchmark index, the Bloomberg Municipal Bond: Quality Intermediate Total Return Index Unhedged US. |
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The Trustees considered that the materials included in the Consultant’s Report indicated that the Fund’s average annual total return was higher than the average annual total return of the funds in the Morningstar Category for the one, three, five, and ten-year periods ended June 30, 2023. They noted that the Fund’s return for the one and ten-year periods ended June 30, 2023 was in the second quintile and that the Fund’s return for the six-month period and three and five-year periods ended June 30, 2023 was in the third quintile, in each case relative to the funds in the Morningstar Category for the same periods. (Each quintile represents one-fifth of the peer group and first quintile is most favorable to the Fund’s shareholders.) The Trustees further considered that the Fund’s average annual return was lower than that of its benchmark index for the one, three and five-year periods ended June 30, 2023, and higher than that of its benchmark index for the ten-year period ended June 30, 2023. The Trustees further noted, as reflected in the Consultant’s Report, that the Fund’s total return for 2022 outperformed the average total return of the funds in the Morningstar Category but underperformed the total return of its benchmark index for 2022.
The Trustees noted that the Fund invests primarily in municipal obligations issued by the State of Rhode Island, its counties and various other local authorities, while the funds in the Morningstar Category invest in, and the Fund’s benchmark index includes, municipal bonds of issuers throughout the United States. They noted that only 0.17% of the benchmark index consists of Rhode Island bonds (as of June 30, 2023) and that none of the funds in the Morningstar Category invests primarily in Rhode Island municipal obligations. They further noted that, unlike the Fund’s returns, the performance of the benchmark index did not reflect any fees, expenses or sales charges.
The Trustees considered the Fund’s investment performance to be consistent with the investment objectives of the Fund. Evaluation of the investment performance of the Fund indicated to the Trustees that renewal of the Advisory Agreement and Sub-Advisory Agreement would be appropriate.
Advisory Fees and Sub-Advisory Fees and Fund Expenses.
The Trustees evaluated the fee payable under the Advisory Agreement. They noted that the Manager, and not the Fund, paid the Sub-Adviser under the Sub-Advisory Agreement. The Trustees evaluated both the fee under the Sub-Advisory Agreement and the portion of the advisory fee paid under the Advisory Agreement and retained by the Manager. The Trustees reviewed the Fund’s advisory fees and expenses and compared them to the advisory fee and expense data for the 19 funds in the Fund’s expense group (the “Expense Group”), as selected by the independent consultant (the Fund and 13 other Municipal Single-State Intermediate-Term Bond funds, one Municipal Massachusetts Bond fund, two Municipal Minnesota Bond funds and two Municipal New Jersey Bond funds, each categorized by Morningstar, Inc. with portfolio assets ranging between $101 million and $600 million). Only front-end load and retail no-load funds were considered for inclusion in the Expense Group. In addition, peer selection focused on municipal bond funds with an intermediate duration across comparable categories. The Trustees also compared the Fund’s advisory fees and expenses to advisory fee data for the Fund’s Morningstar Category (as defined above). Certain of the peer group comparisons referred to below are organized in quintiles. Each quintile represents one-fifth of the peer group.
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In all peer group comparisons referred to below, first quintile is most favorable to the Fund’s shareholders.
The Trustees considered that the Fund’s net management fee for its most recent fiscal year was in the third quintile relative to the management fees paid by the other funds in its Expense Group for the comparable period and was equal to the median actual net management fee of the funds in the Expense Group (after giving effect to fee waivers in effect for those funds). They also considered that the Fund’s contractual advisory fee was higher than the average and median contractual advisory fees of the funds in the Morningstar Category (at the Fund’s current asset level and all asset levels up to $10 billion).
The Trustees considered that the Fund’s net total expenses (for Class A shares), after giving effect to fee waivers and expense reimbursements, for the most recent fiscal year were in the fourth quintile relative to the net total expenses of the other funds in its Expense Group for the comparable period and higher than the median net total expenses of the funds in the Expense Group (after giving effect to fee waivers and expense reimbursements in effect for those funds).
The Trustees further noted that the Manager has contractually undertaken to waive its fees so that management fees are equivalent to 0.48 of 1% of net assets of the Fund up to $400,000,000; 0.46 of 1% of net assets above $400,000,000 up to $1,000,000,000; and 0.44 of 1% of net assets above $1,000,000,000. This contractual undertaking is in effect until September 30, 2024. The Manager may not terminate the arrangement without the approval of the Board of Trustees.
The Trustees reviewed management fees charged by each of the Manager and the Sub-Adviser to its other clients. It was noted that the Manager does not have any other clients except for other funds in the Aquila Group of Funds. The Trustees noted that, in most instances, the fee rates for those clients were comparable to the fees paid to the Manager by the Fund. With respect to the Sub-Adviser, the Trustees noted that the fee rates for its other clients were generally lower than the fees paid to the Sub-Adviser with respect to the Fund. In evaluating the fees associated with the client accounts, the Trustees took into account the respective demands, resources and complexity associated with the Fund and those client accounts.
The Trustees considered that the Manager and, in turn, the Sub-Adviser was currently voluntarily waiving a portion of its fees and had been since the Fund’s inception. Additionally, it was noted that the Manager had indicated that it intended to continue to voluntarily waive fees as necessary for the Fund to remain competitive.
The Trustees concluded that the advisory and sub-advisory fees were reasonable in relation to the nature and quality of the services provided to the Fund by the Manager and the Sub-Adviser.
Profitability
The Trustees received materials from the Manager related to profitability. The Manager provided information which showed the profitability to the Manager of its services to the Fund, as well as the profitability of Aquila Distributors LLC of distribution
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services provided to the Fund. The Manager also provided other financial information to the members of the financial review committee of the Fund and the other funds in the Aquila Group of Funds.
The Trustees considered the information provided by the Manager regarding the profitability of the Manager with respect to the advisory services provided by the Manager to the Fund, including the methodology used by the Manager in allocating certain of its costs to the management of the Fund. The Trustees also considered and discussed the report of the financial review committee of the Fund and the other funds in the Aquila Group of Funds related to the overall financial condition of the Manager and its continuing provision of advisory services to the Fund. The Trustees concluded that profitability to the Manager with respect to advisory services provided to the Fund did not argue against approval of the fees to be paid under the Advisory Agreement.
The Trustees also considered information provided by the Sub-Adviser regarding the profitability of the Sub-Adviser with respect to the sub-advisory services provided by the Sub-Adviser to the Fund. The Trustees concluded that the profitability of the Sub-Adviser with respect to sub-advisory services provided to the Fund did not argue against approval of the fees to be paid under the Sub-Advisory Agreement.
The extent to which economies of scale would be realized as the Fund grows.
The Trustees considered the extent to which the Manager and the Sub-Adviser may realize economies of scale or other efficiencies in managing the Fund. They noted that the Manager has agreed, through a contractual advisory fee waiver, to include breakpoints in its advisory fee schedule based on the size of the Fund. The Trustees noted that the Manager’s profitability also may be an indicator of the availability of any economies of scale. Accordingly, the Trustees concluded that economies of scale, if any, were being appropriately shared with the Fund.
Benefits derived or to be derived by the Manager and the Sub-Adviser and their affiliates from their relationships with the Fund.
The Trustees observed that, as is generally true of most fund complexes, the Manager and Sub-Adviser and their affiliates, by providing services to a number of funds or other investment clients including the Fund, were able to spread costs as they would otherwise be unable to do. The Trustees noted that while that could produce efficiencies and increased profitability for the Manager and Sub-Adviser and their affiliates, it also makes their services available to the Fund at favorable levels of quality and cost which are more advantageous to the Fund than would otherwise have been possible.
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Additional Information (unaudited):
Aquila Tax-Free Fund For Utah (the “Fund”):
Renewal of the Advisory and Administration Agreement
Aquila Investment Management LLC (the “Manager”) serves as the investment adviser to the Fund pursuant to an Advisory and Administration Agreement (the “Advisory Agreement”). In order for the Manager to remain the investment adviser of the Fund, the Trustees of the Fund must determine annually whether to renew the Advisory Agreement for the Fund.
In considering whether to approve the renewal of the Advisory Agreement, the Trustees requested and obtained such information as they deemed reasonably necessary. The independent Trustees met via video conference on September 11, 2023 and in person on September 23, 2023 to review and discuss the contract review materials that were provided in advance of the September 11, 2023 meeting. The Trustees considered, among other things, information presented by the Manager. They also considered information presented in a report prepared by an independent consultant with respect to the Fund’s fees, expenses and investment performance, which included comparisons of the Fund’s investment performance against peers and the Fund’s benchmark and comparisons of the advisory fee payable under the Advisory Agreement against the advisory fees paid by the Fund’s peers (the “Consultant’s Report”). In addition, the Trustees took into account the performance and other information related to the Fund provided to the Trustees at each regularly scheduled meeting. The Trustees also discussed the memorandum provided by Fund counsel that summarized the legal standards and other considerations that are relevant to the Trustees in their deliberations regarding the renewal of the Advisory Agreement.
At the meeting held on September 23, 2023, based on their evaluation of the information provided by the Manager and the independent consultant, the Trustees of the Fund present at the meeting, including the independent Trustees voting separately, unanimously approved the renewal of the Advisory Agreement until September 30, 2024.
In considering the renewal of the Advisory Agreement, the Trustees considered various factors that they determined were relevant, including the factors described below. The Trustees did not identify any single factor as the controlling factor in determining to approve the renewal of the Advisory Agreement.
The nature, extent, and quality of the services provided by the Manager
The Trustees considered the nature, extent and quality of the services that had been provided by the Manager to the Fund, taking into account the investment objectives and strategies of the Fund. The Trustees reviewed the terms of the Advisory Agreement.
The Trustees reviewed the Manager’s investment approach for the Fund and its research process. The Trustees considered that the Manager had provided all advisory and administrative services to the Fund that the Trustees deemed necessary or appropriate, including the specific services that the Trustees have determined are required for the Fund, given that it seeks to provide shareholders with as high a level of current income exempt from Utah state and regular Federal income taxes as is consistent with preservation of capital. The Trustees considered the personnel of the Manager who provide investment management services to the Fund. The Manager has employed
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Messrs. James Thompson, Tony Tanner, Royden Durham and Timothy Iltz as portfolio managers for the Fund and has established facilities and capabilities for credit analysis of the Fund’s portfolio securities. They considered that Mr. Thompson, the Fund’s lead portfolio manager, is based in Salt Lake City, Utah and that he has a comprehensive understanding regarding the economy of the State of Utah and the securities in which the Fund invests, including non-rated securities and those securities with less than the highest ratings from the rating agencies. They also considered that Mr. Thompson plans to retire as a portfolio manager on December 31, 2023.
The Trustees noted that the Manager has additionally provided all administrative services to the Fund and provided the Fund with personnel (including Fund officers) and other resources that are necessary for the Fund’s business management and operations. The Trustees considered the nature and extent of the Manager’s supervision of third-party service providers, including the Fund’s fund accountant, shareholder servicing agent and custodian.
Based on these considerations, the Trustees concluded that the nature, extent and quality of services that had been provided by the Manager to the Fund were satisfactory and consistent with the terms of the Advisory Agreement.
The investment performance of the Fund
The Trustees reviewed the Fund’s performance (Class A shares) and compared its performance to the performance of:
· | the funds in the Municipal Single State Intermediate-Term Bond category as assigned by Morningstar, Inc. (the “Morningstar Category”); and |
· | the Fund’s benchmark index, the Bloomberg Municipal Bond: Quality Intermediate Total Return Index Unhedged USD. |
The Trustees considered that the materials included in the Consultant’s Report indicated that the Fund’s average annual total return was higher than the average annual total return of the funds in the Morningstar Category for the one and ten-year periods ended June 30, 2023 and equal to the average annual total return of the funds in the Morningstar Category for the 5-year period ended June 30, 2023, but lower than the average annual total return of the funds in the Morningstar Category for the three-year period ended June 30, 2023. They noted that the Fund’s return for the ten-year period was in the second quintile; in the third quintile for the one and five-year periods; and in the fourth quintile for the three-year period, in each case relative to the funds in the Morningstar Category for the periods ended June 30, 2023. (Each quintile represents one-fifth of the peer group and first quintile is most favorable to the Fund’s shareholders.) The Trustees further considered that the Fund outperformed its benchmark index for ten-year period ended June 30, 2023, but underperformed its benchmark index for each of the one, three and five-year periods ended June 30, 2023. The Trustees further noted, as reflected in the Consultant’s Report, that the Fund’s total return for 2022 outperformed the average total return of the funds in the Morningstar Category for 2022, but underperformed the benchmark index for 2022.
The Trustees noted that the Fund invests primarily in municipal obligations issued by the State of Utah, its counties and various other local authorities, while the funds in
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the Morningstar Category invest in, and the Fund’s benchmark index includes, municipal bonds of issuers throughout the United States and that 0.63% of the benchmark index consists of Utah bonds (as of June 30, 2023). The Trustees noted that, unlike the Fund’s returns, the performance of the benchmark index did not reflect any fees or expenses.
The Trustees considered the Fund’s investment performance to be consistent with the investment objectives of the Fund. Evaluation of the investment performance of the Fund indicated to the Trustees that renewal of the Advisory Agreement would be appropriate.
Advisory Fees and Fund Expenses
The Trustees reviewed the Fund’s advisory fees and expenses and compared them to the advisory fee and expense data for the 18 funds in the Fund’s expense group (the “Expense Group”), as selected by the independent consultant (the Fund and 12 other Municipal Single-State Intermediate-Term Bond funds, three Municipal Minnesota Bond funds and two Municipal New Jersey Bond funds, each categorized by Morningstar, Inc. with portfolio assets ranging between $123 million and $972 million). Only front-end load and retail no-load funds were considered for inclusion in the Expense Group. In addition, peer selection focused on municipal bond funds with an intermediate duration across comparable categories. The Trustees also compared the Fund’s advisory fees and expenses to advisory fee data for the Fund’s Morningstar Category (as defined above). Certain of the peer group comparisons referred to below are organized in quintiles. Each quintile represents one-fifth of the peer group. In all peer group comparisons referred to below, first quintile is most favorable to the Fund’s shareholders.
The Trustees considered that the Fund’s net management fee (after giving effect to the fee waiver) for its most recent fiscal year was in the fourth quintile relative to the management fees paid by the other funds in its Expense Group for the comparable period and higher than the median net management fee of the funds in the Expense Group (after giving effect to fee waivers in effect for those funds). They also considered that the Fund’s contractual advisory fee was higher than the average and median contractual advisory fee of the funds in the Morningstar Category (at the Fund’s current asset level and all asset levels up to $10 billion).
The Trustees considered that the Fund’s net total expenses (for Class A shares), after giving effect to fee waivers and expense reimbursements, for the most recent fiscal year were in the fifth quintile relative to the net total expenses of the other funds in its Expense Group for the comparable period and higher than the median net total expenses of the funds in Expense Group (after giving effect to fee waivers and expense reimbursements in effect for those funds).
The Trustees further noted that the Manager has contractually undertaken to waive its fees so that management fees are equivalent to 0.48 of 1% of net assets of the Fund up to $400,000,000; 0.46 of 1% of net assets above $400,000,000 up to $1,000,000,000; and 0.44 of 1% of net assets above $1,000,000,000. This contractual undertaking is in effect until September 30, 2024. The Manager may not terminate the arrangement without the approval of the Board of Trustees.
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The Trustees reviewed management fees charged by the Manager to its other clients. It was noted that the Manager does not have any other clients except for other funds in the Aquila Group of Funds. The Trustees noted that, in most instances, the fee rates for those clients were comparable to the fees paid to the Manager with respect to the Fund. In evaluating the fees associated with the other funds, the Trustees took into account the respective demands, resources and complexity associated with the Fund and those funds.
The Trustees considered that the Manager was contractually waiving a portion of its fees and had been since the Fund’s inception. Additionally, it was noted that the Manager had indicated that it intended to continue to contractually waive fees as necessary for the Fund to remain competitive. The Trustees concluded that the advisory fee was reasonable in relation to the nature and quality of the services provided by the Manager to the Fund.
Profitability
The Trustees received materials from the Manager related to profitability. The Manager provided information which showed the profitability to the Manager of its services to the Fund, as well as the profitability of Aquila Distributors LLC of distribution services provided to the Fund. The Manager also provided other financial information to the members of the financial review committee of the Fund and the other funds in the Aquila Group of Funds.
The Trustees considered the information provided by the Manager regarding the profitability of the Manager with respect to the advisory services provided by the Manager to the Fund, including the methodology used by the Manager in allocating certain of its costs to the management of the Fund. The Trustees also considered and discussed the report of the financial review committee of the Fund and the other funds in the Aquila Group of Funds related to the overall financial condition of the Manager and its continuing provision of advisory services to the Fund. The Trustees concluded that profitability to the Manager with respect to the advisory services provided to the Fund did not argue against approval of the fees to be paid under the Advisory Agreement.
The extent to which economies of scale would be realized as the Fund grows
The Trustees considered the extent to which the Manager may realize economies of scale or other efficiencies in managing the Fund. They noted that the Manager has agreed, through a contractual advisory fee waiver, to include breakpoints in its fee schedule based on the size of the Fund. The Trustees noted that the Manager’s profitability also may be an indicator of the availability of any economies of scale. Accordingly, the Trustees concluded that economies of scale, if any, were being appropriately shared with the Fund.
Benefits derived or to be derived by the Manager and its affiliate from the relationship with the Fund
The Trustees observed that, as is generally true of most fund complexes, the Manager and its affiliates, by providing services to a number of funds including the Fund, were able to spread costs as they would otherwise be unable to do. The Trustees noted that while that produces efficiencies and increased profitability for the Manager and its affiliates, it also makes their services available to the Fund at favorable levels of quality and cost which are more advantageous to the Fund than would otherwise have been possible.
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AQUILA TAX-FREE TRUST OF ARIZONA
Your Fund’s Expenses (unaudited)
As a Fund shareholder, you may incur two types of costs: (1) transaction costs, including front-end sales charges with respect to Class A shares or contingent deferred sales charges (“CDSC”) with respect to Class C shares; and (2) ongoing costs including management fees; distribution “12b-1” and/or service fees; and other Fund expenses. The table below is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The table below assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses that you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During the Period”.
Hypothetical Example for Comparison with Other Funds
Under the heading, “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
Actual | Hypothetical | ||||||
(actual return after expenses) | (5% annual return before expenses) | ||||||
Share Class | Beginning Account Value 4/01/23 | Ending(1) Account | Expenses(2) Paid During Period 4/01/23 – 9/30/23 | Ending Account Value 9/30/23 | Expenses(2) Paid During Period 4/01/23 – 9/30/23 | Net Annualized Expense Ratio | |
A | $1,000 | $968.90 | $3.64 | $1,021.30 | $3.74 | 0.74% | |
C | $1,000 | $964.70 | $7.81 | $1,017.05 | $8.02 | 1.59% | |
Y | $1,000 | $969.60 | $2.91 | $1,022.05 | $2.98 | 0.59% |
(1) | Assumes reinvestment of all dividends and capital gain distributions, if any, at net asset value and does not reflect the deduction of the applicable sales charges with respect to Class A or the applicable CDSC with respect to Class C shares. Total return is not annualized and as such, it may not be representative of the total return for the year. |
(2) | Expenses are equal to the annualized expense ratio for the six-month period as indicated above - in the far right column - multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period. |
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AQUILA TAX-FREE FUND OF COLORADO
Your Fund’s Expenses (unaudited)
As a Fund shareholder, you may incur two types of costs: (1) transaction costs, including front-end sales charges with respect to Class A shares or contingent deferred sales charges (“CDSC”) with respect to Class C shares; and (2) ongoing costs including management fees; distribution “12b-1” and/or service fees; and other Fund expenses. The table below is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The table below assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses that you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During the Period”.
Hypothetical Example for Comparison with Other Funds
Under the heading, “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
Actual | Hypothetical | ||||||
(actual return after expenses) | (5% annual return before expenses) | ||||||
Share Class | Beginning Account Value 4/01/23 | Ending(1) Account | Expenses(2) Paid During Period 4/01/23 – 9/30/23 | Ending Account Value 9/30/23 | Expenses(2) Paid During Period 4/01/23 – 9/30/23 | Net Annualized Expense Ratio | |
A | $1,000 | $972.20 | $3.75 | $1,021.20 | $3.84 | 0.76% | |
C | $1,000 | $966.50 | $8.36 | $1,016.50 | $8.57 | 1.70% | |
Y | $1,000 | $971.50 | $3.45 | $1,021.50 | $3.54 | 0.70% |
(1) | Assumes reinvestment of all dividends and capital gain distributions, if any, at net asset value and does not reflect the deduction of the applicable sales charges with respect to Class A or the applicable CDSC with respect to Class C shares. Total return is not annualized and as such, it may not be representative of the total return for the year. |
(2) | Expenses are equal to the annualized expense ratio for the six-month period as indicated above - in the far right column - multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period. |
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AQUILA CHURCHILL TAX-FREE FUND OF KENTUCKY
Your Fund’s Expenses (unaudited)
As a Fund shareholder, you may incur two types of costs: (1) transaction costs, including front-end sales charges with respect to Class A shares or contingent deferred sales charges (“CDSC”) with respect to Class C shares; and (2) ongoing costs including management fees; distribution “12b-1” and/or service fees; and other Fund expenses. The table below is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The table below assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses that you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During the Period”.
Hypothetical Example for Comparison with Other Funds
Under the heading, “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
Actual | Hypothetical | ||||||
(actual return after expenses) | (5% annual return before expenses) | ||||||
Share Class | Beginning Account Value 4/01/23 | Ending(1) Account | Expenses(2) Paid During Period 4/01/23 – 9/30/23 | Ending Account Value 9/30/23 | Expenses(2) Paid During Period 4/01/23 – 9/30/23 | Net Annualized Expense Ratio | |
A | $1,000 | $964.50 | $3.58 | $1,021.05 | $3.99 | 0.79% | |
C | $1,000 | $960.40 | $7.99 | $1,016.85 | $8.22 | 1.63% | |
F | $1,000 | $965.30 | $3.00 | $1,021.95 | $3.08 | 0.61% | |
I | $1,000 | $964.70 | $4.62 | $1,020.30 | $4.75 | 0.94% | |
Y | $1,000 | $965.30 | $3.04 | $1,021.80 | $3.23 | 0.64% |
(1) | Assumes reinvestment of all dividends and capital gain distributions, if any, at net asset value and does not reflect the deduction of the applicable sales charges with respect to Class A or the applicable CDSC with respect to Class C shares. Total return is not annualized and as such, it may not be representative of the total return for the year. |
(2) | Expenses are equal to the annualized expense ratio for the six-month period as indicated above - in the far right column - multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period. |
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AQUILA TAX-FREE TRUST OF OREGON
Your Fund’s Expenses (unaudited)
As a Fund shareholder, you may incur two types of costs: (1) transaction costs, including front-end sales charges with respect to Class A shares or contingent deferred sales charges (“CDSC”) with respect to Class C shares; and (2) ongoing costs including management fees; distribution “12b-1” and/or service fees; and other Fund expenses. The table below is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The table below assumes a $1,000 investment held for the six months indicated.
Actual Expenses
The table provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses that you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During the Period”.
Hypothetical Example for Comparison with Other Funds
Under the heading, “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
Actual | Hypothetical | ||||||
(actual return after expenses) | (5% annual return before expenses) | ||||||
Share Class | Beginning Account Value 4/01/23 | Ending(1) Account | Expenses(2) Paid During Period 4/01/23 – 9/30/23 | Ending Account Value 9/30/23 | Expenses(2) Paid During Period 4/01/23 – 9/30/23 | Net Annualized Expense Ratio | |
A | $1,000 | $968.10 | $3.49 | $1,021.45 | $3.59 | 0.71% | |
C | $1,000 | $964.90 | $7.66 | $1,017.20 | $7.87 | 1.56% | |
F | $1,000 | $968.90 | $2.66 | $1,022.30 | $2.73 | 0.54% | |
Y | $1,000 | $968.80 | $2.76 | $1,022.20 | $2.83 | 0.56% |
(1) | Assumes reinvestment of all dividends and capital gain distributions, if any, at net asset value and does not reflect the deduction of the applicable sales charges with respect to Class A or the applicable CDSC with respect to Class C shares. Total return is not annualized and as such, it may not be representative of the total return for the year. |
(2) | Expenses are equal to the annualized expense ratio for the six-month period as indicated above - in the far right column - multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period. |
173 | Aquila Municipal Trust
AQUILA NARRAGANSETT TAX-FREE INCOME FUND
Your Fund’s Expenses (unaudited)
As a Fund shareholder, you may incur two types of costs: (1) transaction costs, including front-end sales charges with respect to Class A shares or contingent deferred sales charges (“CDSC”) with respect to Class C shares; and (2) ongoing costs including management fees; distribution “12b-1” and/or service fees; and other Fund expenses. The table below is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The table below assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses that you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During the Period”.
Hypothetical Example for Comparison with Other Funds
Under the heading, “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
Actual | Hypothetical | ||||||
(actual return after expenses) | (5% annual return before expenses) | ||||||
Share Class | Beginning Account Value 4/01/23 | Ending(1) Account | Expenses(2) Paid During Period 4/01/23 – 9/30/23 | Ending Account Value 9/30/23 | Expenses(2) Paid During Period 4/01/23 – 9/30/23 | Net Annualized Expense Ratio | |
A | $1,000 | $958.60 | $3.97 | $1,020.95 | $4.09 | 0.81% | |
C | $1,000 | $954.60 | $8.11 | $1,016.70 | $8.37 | 1.66% | |
F | $1,000 | $959.40 | $3.14 | $1,021.80 | $3.23 | 0.64% | |
I | $1,000 | $958.00 | $4.65 | $1,020.25 | $4.80 | 0.95% | |
Y | $1,000 | $959.30 | $3.23 | $1,021.70 | $3.34 | 0.66% |
(1) | Assumes reinvestment of all dividends and capital gain distributions, if any, at net asset value and does not reflect the deduction of the applicable sales charges with respect to Class A or the applicable CDSC with respect to Class C shares. Total return is not annualized and as such, it may not be representative of the total return for the year. |
(2) | Expenses are equal to the annualized expense ratio for the six-month period as indicated above - in the far right column - multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period. |
174 | Aquila Municipal Trust
AQUILA TAX-FREE FUND FOR UTAH
Your Fund’s Expenses (unaudited)
As a Fund shareholder, you may incur two types of costs: (1) transaction costs, including front-end sales charges with respect to Class A shares or contingent deferred sales charges (“CDSC”) with respect to Class C shares; and (2) ongoing costs including management fees; distribution “12b-1” and/or service fees; and other Fund expenses. The table below is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The table below assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses that you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During the Period”.
Hypothetical Example for Comparison with Other Funds
Under the heading, “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
Actual | Hypothetical | ||||||
(actual return after expenses) | (5% annual return before expenses) | ||||||
Share Class | Beginning Account Value 4/01/23 | Ending(1) Account | Expenses(2) Paid During Period 4/01/23 – 9/30/23 | Ending Account Value 9/30/23 | Expenses(2) Paid During Period 4/01/23 – 9/30/23 | Net Annualized Expense Ratio | |
A | $1,000 | $965.30 | $4.37 | $1,020.55 | $4.50 | 0.89% | |
C | $1,000 | $961.50 | $8.29 | $1,016.55 | $8.52 | 1.69% | |
F | $1,000 | $965.70 | $3.24 | $1,021.70 | $3.34 | 0.66% | |
Y | $1,000 | $966.40 | $3.39 | $1,021.55 | $3.49 | 0.69% |
(1) | Assumes reinvestment of all dividends and capital gain distributions, if any, at net asset value and does not reflect the deduction of the applicable sales charges with respect to Class A or the applicable CDSC with respect to Class C shares. Total return is not annualized and as such, it may not be representative of the total return for the year. |
(2) | Expenses are equal to the annualized expense ratio for the six-month period as indicated above - in the far right column - multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period. |
175 | Aquila Municipal Trust
|
Information Available (unaudited)
Annual and Semi-Annual Reports and Complete Schedules of Investments
Each Fund’s Annual and Semi-Annual Reports is filed with the SEC twice a year. Each Report contains a complete Schedule of Portfolio Holdings, along with full financial statements and other important financial statement disclosures. Additionally, each Fund files a complete Schedule of Investments with the SEC for the first and third quarters of each fiscal year as an exhibit to its Reports on Form N-PORT. Each Fund’s Annual and Semi-Annual Reports and N-PORT reports are available free of charge on the SEC website at www.sec.gov. You may also review or, for a fee, copy the forms at the SEC’s Public Reference Room in Washington, D.C. or by calling 1-800-SEC-0330.
In addition, each Fund’s Annual and Semi-Annual Reports and complete Portfolio Holdings Schedules for each fiscal quarter end is also available, free of charge, on the Funds’ website, www.aquilafunds.com or by calling us at 1-800-437-1000.
Portfolio Holdings Reports
In accordance with each Fund’s Portfolio Holdings Disclosure Policy, the Manager also prepares a Portfolio Holdings Report as of each quarter end, which is typically posted to each Fund’s individual page at www.aquilafunds.com by the 15th day after the end of each calendar quarter. Such information will remain accessible until the next Portfolio Holdings Report is made publicly available by being posted to www.aquilafunds.com. The quarterly Portfolio Holdings Report may be accessed, free of charge, by visiting www.aquilafunds.com or calling us at 1-800-437-1000.
Proxy Voting Record (unaudited)
During the 12 month period ended June 30, 2023, there were no proxies related to any portfolio instruments held by the Funds. As such, the Funds did not vote any proxies. Applicable regulations require us to inform you that each Fund’s proxy voting information is available on the SEC website at www.sec.gov.
Federal Tax Status of Distributions (unaudited)
This information is presented in order to comply with a requirement of the Internal Revenue Code. No action on the part of shareholders is required.
For the fiscal year ended March 31, 2023, the following percentage of the dividends and distributions paid by the Funds were taxable as follows:
Dividends Paid | Exempt Interest Dividends (%) | |||
Aquila Tax-Free Trust of Arizona | $5,305,840 | 98.0% | ||
Aquila Tax-Free Fund of Colorado | $3,721,335 | 98.0% | ||
Aquila Churchill Tax-Free Fund of Kentucky | $3,940,947 | 98.2% | ||
Aquila Tax-Free Trust of Oregon | $9,112,788 | 98.4% | ||
Aquila Narragansett Tax-Free Income Fund | $4,576,347 | 98.4% | ||
Aquila Tax-Free Fund For Utah | $8,124,346 | 98.9% |
Prior to February 15, 2024, shareholders will be mailed the appropriate tax form(s) which contained information on the status of distributions paid for the 2023 calendar year.
176 | Aquila Municipal Trust
Founders
Lacy B. Herrmann (1929-2012)
Aquila Management Corporation, Sponsor
Manager
AQUILA INVESTMENT MANAGEMENT LLC
120 West 45th Street, Suite 3600
New York, New York 10036
Board of Trustees
Patricia L. Moss, Chair
Diana P. Herrmann, Vice Chair
Ernest Calderón
Gary C. Cornia
Grady Gammage, Jr.
Glenn P. O’Flaherty
Heather R. Overby
Laureen L. White
Officers
Diana P. Herrmann, President
Paul G. O’Brien, Senior Vice President
Royden P. Durham, Vice President and
Portfolio Manager
Timothy Iltz, Vice President and Portfolio Manager
Anthony A. Tanner, Vice President and
Portfolio Manager
James T. Thompson, Vice President and
Portfolio Manager
Vasilios Gerasopoulos, Assistant Vice President and
Portfolio Manager
Stephen J. Caridi, Senior Vice President
Robert C. Arnold, Vice President
Christian Alexander Bremer, Vice President
Troy Miller, Vice President
Christine L. Neimeth, Vice President
M. Kayleen Willis, Vice President
Randall S. Fillmore, Chief Compliance Officer
Joseph P. DiMaggio, Chief Financial Officer
and Treasurer
Anita Albano, Secretary
Distributor
AQUILA DISTRIBUTORS LLC
120 West 45th Street, Suite 3600
New York, New York 10036
Transfer and Shareholder Servicing Agent
BNY MELLON INVESTMENT SERVICING (US) INC.
118 Flanders Road
Westborough, Massachusetts 01581
Custodian
The Bank of New York Mellon
240 Greenwich Street
New York, New York 10286
Further information is contained in the Prospectus,
which must precede or accompany this report.
AQL-AMTSAR-1123
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable
ITEM 6. INVESTMENTS
(a) Schedule I – Included in Item 1 above
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT
INVESTMENT COMPANIES
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND
AFFILIATED PURCHASERS
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Board of Trustees of the Registrant has adopted a Nominating Committee Charter which provides that the Nominating Committee (the 'Committee') may consider and evaluate nominee candidates properly submitted by shareholders if a vacancy among the Independent Trustees of the Registrant occurs and if, based on the Board's then current size, composition and structure, the Committee determines that the vacancy should be filled. The Committee will consider candidates submitted by shareholders on the same basis as it considers and evaluates candidates recommended by other sources. A copy of the qualifications and procedures that must be met or followed by shareholders to properly submit a nominee candidate to the Committee may be obtained by submitting a request in writing to the Secretary of the Registrant.
ITEM 11. CONTROLS AND PROCEDURES
(a) | Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that the information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. |
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSRS, the Registrant has carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
(b) | Change in Internal Controls. There have been no significant changes in Registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting. |
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
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.
AQUILA MUNICIPAL TRUST
By: /s/ Diana P. Herrmann
Diana P. Herrmann
Vice Chair, Trustee and President
December 5, 2023
By: /s/ Joseph P. DiMaggio
Chief Financial Officer and Treasurer
December 5, 2023
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: /s/ Diana P. Herrmann
Diana P. Herrmann
Vice Chair, Trustee and President
December 5, 2023
By: /s/ Joseph P. DiMaggio
Joseph P. DiMaggio
Chief Financial Officer and Treasurer
December 5, 2023