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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-05009 |
COLORADO BONDSHARES — A TAX-EXEMPT FUND
(Exact name of registrant as specified in charter)
1200 17TH STREET, SUITE 850, DENVER, COLORADO 80202-5808
(Address of principal executive offices) (Zip code)
FRED R. KELLY, JR. 1200 17TH STREET, SUITE 850, DENVER, COLORADO 80202-5808
(Name and address of agent for service)
Registrant’s telephone number, including area code: | 303-572-6990 |
Date of fiscal year end: | 09/30/2008 |
Date of reporting period: | 03/31/2008 |
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of Trustees
Treasurer and Trustee
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• | Sales charges (front loads) on fund purchases and | |
• | Ongoing fund costs, including management fees, administrative services, and other fund expenses. All mutual funds have operating expenses. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of a fund. |
Beginning Account | Ending Account | Expenses Paid | ||||||||||
Colorado BondShares – A Tax-Exempt Fund | Value 10/01/07 | Value 03/31/08 | During Period1 | |||||||||
Based on Actual Fund Return | $ | 1,000.00 | $ | 1,011.70 | $ | 2.82 | ||||||
Based on Hypothetical 5% Annual | ||||||||||||
Return Before Expenses | $ | 1,000.00 | $ | 1,022.20 | $ | 2.84 |
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Face Amount | Market Value | |||||||
Colorado Municipal Bonds — 85.5% | ||||||||
1,600,000 | Aberdeen Metropolitan District No. 1 G.O. (LTD Tax Convertible to Unlimited Tax) Series 2007, 7.50% to yield 8.00% due 12/1/2035 | $ | 1,542,112 | |||||
1,000,000 | Adonea Metropolitan District No. 2 LTD Tax (Convertible to Unlimited Tax) G.O. Series 2005A, 6.125% to yield 6.25% due 12/1/2025 | 872,640 | ||||||
2,175,000 | Antelope Heights Metropolitan District G.O. (LTD Tax Convertible to Unlimited Tax) Series 2003, 8.00% due 12/1/2023 | 2,726,558 | ||||||
2,000,000 | Arista Metropolitan District Special Revenue Bond Series 2005, 6.75% due 12/1/2035 | 1,789,720 | ||||||
3,000,000 | Arista Metropolitan District Subordinate (Convertible to Parity) Special Revenue Series 2008, 9.25% yield to call 8.125% due 12/1/2037 | 3,181,830 | ||||||
306,040 | Aurora Centretech Metropolitan District G.O. Refunding and Improvement Series 1994, 6.00% due 12/1/2023(b) | 585,678 | ||||||
1,602,000 | BNC Metropolitan District No. 1 G.O. (LTD Tax Convertible to Unlimited Tax) Series 2004, 8.00% due 6/1/2028 | 1,602,000 | ||||||
1,000,000 | Beacon Pointe Metropolitan District LTD Tax (Convertible to Unlimited Tax) G.O. Series 2005A, 6.125% to yield 6.25% due 12/1/2025 | 872,640 | ||||||
700,000 | Beebe Draw Farms Metropolitan District G.O. Series 1998, 7.00% due 10/1/2018 | 700,000 | ||||||
5,080,000 | Belle Creek Metropolitan District No. 1 G.O. LTD Tax Series 2000, 8.00% due 12/1/2020 | 5,027,473 | ||||||
2,250,000 | Black Hawk (City of) Device Tax Revenue Series 1998, 5.625% due 12/1/2021 | 2,328,683 | ||||||
4,520,000 | Boulder County Development Revenue (Boulder College of Massage Therapy Project) Series 2006A, 6.35% due 10/15/2031 | 3,994,414 | ||||||
1,845,000 | Bradburn Metropolitan District No. 3 G.O. LTD Tax Series 2003, 7.50% due 12/1/2033 | 1,845,000 | ||||||
6,070,000 | Bromley Park Metropolitan District No. 3 G.O. Exchange (LTD Tax to Unlimited Tax) Series 2001A and B, 8.00% due 12/1/2019-22(b) | 6,820,351 | ||||||
6,000,000 | Bromley Park Metropolitan District No. 2 G.O. (LTD Tax Convertible to Unlimited Tax) Series 2002B, 8.00% due 12/1/2022(b) | 7,106,040 | ||||||
3,971,000 | Bromley Park Metropolitan District No. 2 G.O. (LTD Tax Convertible to Unlimited Tax) Series 2003 8.00% due 12/1/2028 | 4,872,536 | ||||||
4,750,000 | Broomfield Village Metropolitan District No. 2 Special Revenue Refunding Series 2005B, 2.460% due 7/1/2032(h) | 4,750,000 | ||||||
9,230,000 | Broomfield Village Metropolitan District No. 2 Special Revenue Refunding Series 2003B, 2.960% due 7/1/2032(h) | 9,230,000 | ||||||
500,000 | Castle Oaks Metropolitan District G.O. LTD Tax Series 2005, 6.00% due 12/1/2025 | 437,780 |
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Face Amount | Market Value | |||||||
Colorado Municipal Bonds — (Continued) | ||||||||
25,000 | Castle Rock (Town of) G.O. Series 1988-2, 10.375% due 12/1/2008 | $ | 27,120 | |||||
565,000 | Castle Rock (Town of) LID No. 1988-2 Special Assessment Series 1988, 9.25%-10.375% due 12/1/2008(a)(i) | 39,550 | ||||||
1,805,000 | Central Platte Valley Metropolitan District Special Obligation Revenue Series 1998, 7.00% due 12/1/2017(b) | 1,851,118 | ||||||
6,465,662 | Colorado Centre Metropolitan District LTD Tax and Special Revenue Series 1992B, 0.00% due 1/1/2032(a)(g)(i) | 161,642 | ||||||
2,009,520 | Colorado Centre Metropolitan District LTD Tax and Special Revenue Series 1992A, principal only, 0.00% due 1/1/2027(a)(e)(i) | 20,095 | ||||||
2,008,335 | Colorado Centre Metropolitan District LTD Tax and Special Revenue Series 1992A, interest only, 9.00% due 1/1/2027(f)(h)(i) | 1,104,584 | ||||||
1,700,000 | Colorado Educational and Cultural Facilities Authority Charter School Revenue (Brighton Charter School Project) Series 2006, 6.00% due 11/1/2036 | 1,313,845 | ||||||
3,200,000 | Colorado Educational and Cultural Facilities Authority Charter School Revenue (Liberty Common School Project) Series 1998, 6.95% due 8/15/2019(b) | 3,257,120 | ||||||
840,000 | Colorado Educational and Cultural Facilities Authority Charter School Revenue (Crown Pointe Academy) Series 2000, 7.25% due 7/15/2025 | 856,901 | ||||||
1,125,000 | Colorado Educational and Cultural Facilities Authority Private School Revenue (Escuela Tlatelolco Project) Series 2000A, 8.50% due 6/1/2022 | 1,063,102 | ||||||
310,000 | Colorado Educational and Cultural Facilities Authority Charter School Revenue (Elbert County Charter School Project) Series 2000A, 8.00% due 6/1/2010(b) | 330,296 | ||||||
5,410,000 | Colorado Educational and Cultural Facilities Authority Student Housing Revenue (Inn at Auraria LLC Project) Series 2005A, 5.875% due 7/1/2023 | 4,540,667 | ||||||
1,965,000 | Colorado Educational and Cultural Facilities Authority Charter School Revenue (Belle Creek Charter School Project) Series 2002A, 7.625% to yield 7.75% due 3/15/2032 | 2,281,836 | ||||||
785,000 | Colorado Educational and Cultural Facilities Authority Charter School Revenue Refunding and Improvement (Elbert County Charter School Project Series 2004, 7.375% to yield 7.45% due 3/1/2035 | 804,327 | ||||||
450,000 | Colorado Health Facilities Authority Revenue Extendable Rate Adjustable Securities (Christian Living Communities Project) Series 2006B, 4.65% due 1/1/2037(h) | 438,759 | ||||||
3,655,000 | Colorado Housing and Finance Authority Economic Development Revenue (Micro Business Development Corporation Project) Series 2005, 6.75% due 12/1/2010 | 3,291,400 | ||||||
5,585,000 | Colorado Housing and Finance Authority Multi-family/Project Class I Adjustable Rate 2000 Series A-1, 2.20% due 10/1/2030(h) | 5,585,000 |
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Face Amount | Market Value | |||||||
Colorado Municipal Bonds — (Continued) | ||||||||
5,175,000 | Colorado Housing and Finance Authority Multi-Family/Project Class III Adjustable Rate 2000 Series A-1, 2.95% due 4/1/2030(h) | $ | 5,175,000 | |||||
480,000 | Colorado Housing and Finance Authority Adjustable Rate Multi-family Housing Insured Mortgage Revenue 2002 Series AA, 2.30% due 10/1/2030(h) | 480,000 | ||||||
1,200,000 | Colorado Housing and Finance Authority Single Family Mortgage Class I Adjustable Rate 2001 Series AA-2, 2.10% due 5/1/2036(h) | 1,200,000 | ||||||
11,840,000 | Colorado Housing and Finance Authority Single Family Mortgage Class I Adjustable Rate 2005 Series B-2, 2.10% due 5/1/2034(h) | 11,840,000 | ||||||
5,435,000 | Colorado Housing and Finance Authority Multi-Family/Project Class III Adjustable Rate 2006 Series A-3, 2.95% due 10/1/2036(h) | 5,435,000 | ||||||
28,220,000 | Colorado Housing and Finance Authority Single Family Mortgage Class I Adjustable Rate 2006 Series B-2, 2.10% due 11/1/2034(h) | 28,220,000 | ||||||
6,070,000 | Colorado Housing and Finance Authority Single Family Mortgage Class I Adjustable Rate 2006 Series C-2, 2.10% due 11/1/2034(h) | 6,070,000 | ||||||
22,615,000 | Colorado Springs Urban Renewal Authority Tax Increment Revenue (University Village Project) Series 2008A Senior, 7.00% due 12/1/2029 | 22,615,000 | ||||||
7,505,000 | Colorado Springs Urban Renewal Authority Tax Increment Revenue (University Village Project) Series 2008B Subordinate (Convertible to Senior), 7.50% due 12/15/2029 | 7,505,000 | ||||||
5,000,000 | Commerce City Northern Infrastructure General Improvement District G.O. Variable Rate Series 2006, 2.26% due 12/1/2028(h) | 5,000,000 | ||||||
2,455,000 | Conservatory Metropolitan District G.O. (LTD Tax Convertible to Unlimited Tax) Series 2003, 7.50% due 12/1/2027(b) | 3,045,084 | ||||||
3,725,000 | Conservatory Metropolitan District G.O. (LTD Tax Convertible to Unlimited Tax) Series 2005, 6.75% due 12/1/2034(b) | 4,485,086 | ||||||
1,200,000 | Cornerstone Metropolitan District No. 1 Variable Rate Revenue Series 2006, 2.24% due 12/1/2036(h) | 1,200,000 | ||||||
1,030,000 | Country Club Highlands Metropolitan District G.O. Limited Tax Series 2007, 7.25% due 12/1/2037 | 979,489 | ||||||
3,145,000 | Crested Butte Industrial Development Refunding and Improvement Revenue (Crested Butte Academy Project) Series 2006B, 7.50% due 8/15/2026(a) | 2,358,750 | ||||||
30,850,000 | Denver (City and County) Airport Revenue Variable Rate Series 2004B, 11.50% due 11/15/2024(h) | 30,850,000 | ||||||
1,865,000 | Denver (City and County of) Subordinate Multifamily Housing Revenue (Capitol Heights Apartments) Series 1999C, 8.00% due 5/1/2032 | 1,232,000 |
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Face Amount | Market Value | |||||||
Colorado Municipal Bonds — (Continued) | ||||||||
1,880,000 | Denver (City and County of) Single Family Home Mortgage Revenue (Metro Mayors Caucus Single Family Mortgage Bond Program) Series 2001A, 6.30% to yield 5.80% due 11/1/2032 | $ | 1,934,031 | |||||
775,000 | Denver West Metropolitan District G.O. Series 1997B, 5.70% due 12/1/2017 | 774,992 | ||||||
400,000 | Eagle Riverview Affordable Housing Corporation Multifamily Housing Project Revenue Series 1999B, 7.00% due 7/1/2029 | 386,664 | ||||||
7,210,000 | East Cherry Creek Valley Water and Sanitation District Water Activity Enterprise, Inc. Variable Rate Water Revenue Series 2004, 3.00% due 11/15/2023(c) | 6,651,225 | ||||||
5,000,000 | Ebert Metropolitan District Securitization Trust Series 2004-S1, Class A2 Certificates 2.33% due 12/1/2034(h) | 5,000,000 | ||||||
1,725,000 | Ebert Metropolitan District Securitization Trust Series 2005-S1, Class A2 Certificates 2.33% due 12/1/2009(h) | 1,725,000 | ||||||
620,000 | Fort Lupton Golf Course Revenue Anticipation Warrants Senior Series 1996A, 8.50% due 12/15/2015(a) | 74,400 | ||||||
1,895,000 | Fronterra Village Metropolitan District G.O. (LTD Tax Convertible to Unlimited Tax) Series 2001, 8.00% due 12/1/2021(b) | 2,243,851 | ||||||
4,550,000 | Fronterra Village Metropolitan District No. 2 G.O. (LTD Tax Convertible to Unlimited Tax) Series 2003, 8.00% due 12/1/2023(b) | 5,360,264 | ||||||
500,000 | Galleria Metropolitan District G.O. LTD Tax Series 1999, 7.25% to yield 7.375% due 12/1/2019(b) | 543,705 | ||||||
850,000 | Gateway Village GID G.O. Refunding and Improvement Series 1998, 6.00% due 12/1/2018(b) | 868,998 | ||||||
860,000 | Gateway Village GID Subordinate LTD Tax G.O. Series 1999, 7.00% due 6/1/2019(b) | 887,030 | ||||||
710,000 | Gateway Village GID G.O. Refunding and Improvement Series 1998, 6.00% due 12/1/2018 | 676,105 | ||||||
2,000,000 | Granby Ranch Metropolitan District LTD Tax G.O. Series 2006, 6.75% due 12/1/2036 | 1,787,560 | ||||||
5,750,000 | Grand Elk Ranch GID LTD Tax G.O. Series 2003, 8.00% due 12/1/2023(b) | 7,085,035 | ||||||
640,000 | Greatrock North Water and Sanitation District LTD Tax G.O. Series 1998, 8.00% due 12/1/2017 | 670,701 | ||||||
1,000,000 | High Plains Metropolitan District LTD Tax (Convertible to Unlimited Tax) G.O. Series 2005A, 6.125% to yield 6.25% due 12/1/2025 | 839,860 | ||||||
90,000 | Las Animas (City of) G.O. Water Series 1989, 8.60% due 12/1/2009 | 91,911 | ||||||
210,000 | Littleton (The) Riverfront Authority Tax Increment Revenue Refunding Series 1999A-1, 8.00% due 12/1/2008 | 214,057 |
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Face Amount | Market Value | |||||||
Colorado Municipal Bonds — (Continued) | ||||||||
2,000,000 | Madre Metropolitan District No. 2 G. O. (LTD Tax Convertible to Unlimited Tax) Series 2007A, 5.375% due 12/1/2026 | $ | 1,615,940 | |||||
2,000,000 | Madre Metropolitan District No. 2 G. O. (LTD Tax Convertible to Unlimited Tax) Series 2007A, 5.50% to yield 6.95% due 12/1/2036 | 1,640,320 | ||||||
6,245,000 | Maher Ranch Metropolitan District No. 4 G.O. LTD Tax Series 2003, 7.80% due 12/1/2027(b) | 7,867,888 | ||||||
1,945,000 | Maher Ranch Metropolitan District No. 4 G.O. LTD Tax Series 2006, 7.00% due 12/1/2036(b) | 2,374,923 | ||||||
11,580,000 | Meadows Metropolitan District No. 1 G.O. LTD Tax Series 1989 A (reissued on 12/29/1993) 7.999% due 6/1/2029 | 11,580,000 | ||||||
11,565,000 | Meadows Metropolitan District No. 2 G.O. LTD Tax Series 1989 B (reissued on 12/29/1993) 7.999% due 6/1/2029 | 11,565,000 | ||||||
11,515,000 | Meadows Metropolitan District No. 7 G.O. LTD Tax Series 1989 C (reissued on 12/29/1993) 7.999% due 6/1/2029 | 11,515,000 | ||||||
30,485,000 | Moffat County Weekly Adjustable/Fixed Rate Pollution Control Revenue Refunding (Colorado-Ute Electric Association, Inc. Project) Tri-State Generation and Transmission Series 1984 4.10% due 7/1/2010(h) | 30,485,000 | ||||||
260,000 | Mount Carbon Metropolitan District LTD Tax and Revenue Refunding Series 2004A, 7.00% due 6/1/2043 | 80,314 | ||||||
2,000,000 | Mount Carbon Metropolitan District LTD Tax and Revenue Refunding Series 2004B, 7.00% due 6/1/2043 | 617,800 | ||||||
565,000 | Mount Carbon Metropolitan District LTD Tax and Revenue Refunding Series 2004C, 8.00% due 6/1/2043(e) | 40 | ||||||
1,000,000 | Mountain Shadows Metropolitan District G.O. (LTD Tax Convertible to Unlimited Tax) Series 2007, 5.50% due 12/1/2027 | 785,590 | ||||||
3,920,000 | Murphy Creek Metropolitan District No. 3 G.O. (LTD Tax Convertible to Unlimited Tax) Refunding and Improvement Series 2006, 6.00% — 6.125% to yield 7.90% due 12/1/2026-12/1/2035 | 3,175,524 | ||||||
1,500,000 | Neu Towne Metropolitan District G.O. (LTD Tax Convertible to Unlimited Tax) Series 2004, 7.20% due 12/1/2023 | 911,100 | ||||||
1,130,000 | North Pines Metropolitan District G.O. LTD Tax Series 2000, 9.00% due 12/1/2020 | 1,338,225 | ||||||
2,740,000 | North Range Village Metropolitan District G.O. LTD Tax Series 2000, 8.00% due 12/1/2020(b) | 3,089,405 | ||||||
1,365,000 | North Range Village Metropolitan District G.O. LTD Tax Series 2001, 11.70% due 12/1/2021(b)(c) | 1,779,250 |
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Face Amount | Market Value | |||||||
Colorado Municipal Bonds — (Continued) | ||||||||
1,000,000 | Northwest Metropolitan District No. 3 G.O. (LTD Tax Convertible to Unlimited Tax) Series 2005, 6.125% due 12/1/2025 | $ | 887,890 | |||||
1,335,000 | Parker Jordan Metropolitan District G.O. Series 1998A, 6.25% due 12/1/2017(b) | 1,368,735 | ||||||
4,440,000 | Parker Jordan Metropolitan District G.O. Series 2000, 7.25% to yield 7.375% due 12/1/2019(b) | 4,801,682 | ||||||
2,340,000 | Potomac Farms Metropolitan District G.O. Refunding and Improvement (LTD Tax Convertible to Unlimited Tax) Series 2007A, 7.25% due 12/1/2037 | 2,149,033 | ||||||
9,000,000 | Ravenna Metropolitan District G.O. LTD Tax Series 2007, 7.00% due 12/1/2037 | 8,547,930 | ||||||
13,350,000 | Reata South Metropolitan District LTD Tax G.O. Series 2007A, 7.25% due 6/1/2037 | 12,551,270 | ||||||
5,620,000 | Rendezvous Residential Metropolitan District G.O. LTD Tax Series 2002, 8.00% due 12/1/2021(b) | 6,695,387 | ||||||
3,100,000 | Revenue Bond Certificate Series Trust 2004-13 Senior Certificates of Beneficial Ownership (Centennial East Apartments Project) 2.61% due 12/1/2033(h) | 3,100,000 | ||||||
2,100,000 | Riverdale Peaks II Metropolitan District G.O. (LTD Tax Convertible to Unlimited Tax) Series 2005, 6.40% — 6.50% due 12/1/2025 — 12/1/2035 | 1,866,279 | ||||||
1,285,000 | Routt County LID No. 2002-1 Special Assessment Series 2004A, 6.50% to yield 6.59% due 8/1/2024 | 1,227,689 | ||||||
138,133 | Roxborough Village Metropolitan District Series 1993A, 9.00% due 12/31/2016(i) | 142,915 | ||||||
334,438 | Roxborough Village Metropolitan District Series 1993B, principal only, 0.00% due 12/31/2021(e)(i) | 178,761 | ||||||
367,244 | Roxborough Village Metropolitan District Series 1993B, interest only, 10.41% due 12/31/2042(f)(i) | 56,923 | ||||||
765,000 | Sand Creek Metropolitan District G.O. LTD Tax Series 1998, 6.625% due 12/1/2017(b) | 795,378 | ||||||
2,000,000 | Serenity Ridge Metropolitan District No. 2 Series 2004, 7.375% due 12/1/2024 | 1,499,640 | ||||||
1,000,000 | Silver Peaks Metropolitan District No. 2 G.O. (LTD Tax Convertible to Unlimited Tax) Series 2006, 5.75% due 12/1/2036 | 778,490 | ||||||
3,750,000 | Solitude Metropolitan District Senior G.O. LTD Tax Series 2006, 7.00% due 12/1/2026 | 3,562,725 | ||||||
2,000,000 | Southlands Metropolitan District No. 1 G.O. (LTD Tax Convertible to Unlimited Tax) Series 2004, 7.125% to yield 7.18% due 12/1/2034(b) | 2,437,060 | ||||||
510,000 | Southlands Metropolitan District No. 1 G.O. (LTD Tax Convertible to Unlimited Tax) Series 2004, 6.75% to yield 6.80% due 12/1/2016(b) | 582,991 | ||||||
1,000,000 | Southlands Metropolitan District No. 1 G.O. (LTD Tax Convertible to Unlimited Tax) Series 2004, 7.00% to yield 7.05% due 12/1/2024(b) | 1,211,810 |
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Face Amount | Market Value | |||||||
Colorado Municipal Bonds — (Continued) | ||||||||
1,705,000 | Sterling Hills Metropolitan District G.O. LTD Tax Refunding and Improvement Series 1998, 7.75% due 6/1/2018 | $ | 1,784,402 | |||||
3,035,000 | Sterling Hills West Metropolitan District G.O. Exchange (LTD Tax Convertible to Unlimited Tax) Series 2001A, 8.00% due 12/1/2019(b) | 3,335,617 | ||||||
3,315,000 | Sterling Hills West Metropolitan District G.O. (LTD Tax Convertible to Unlimited Tax) Series 2001B, 8.00% due 12/1/2021(b) | 3,929,966 | ||||||
3,012,007 | Sterling Hills West Metropolitan District G.O. LTD Tax Series 2004, 7.50% due 12/1/2021(b) | 3,450,314 | ||||||
10,000,000 | Stone Ridge Metropolitan District No. 2 G.O. (LTD Tax Convertible to Unlimited Tax) Series 2007, 7.25% due 12/1/2031 | 9,462,100 | ||||||
3,815,000 | Tabernash Meadows Water and Sanitation District G.O. Series 2000, 8.40% due 6/1/2020 | 2,861,250 | ||||||
5,500,000 | Triview Metropolitan District G.O. Variable Rate Refunding and Improvement Series 2006A, 3.60% due 11/1/2023(h) | 5,510,285 | ||||||
10,470,000 | United Water & Sanitation District Revenue Refunding and Improvement Series 2004A, 6.00% due 12/1/2013 | 10,085,123 | ||||||
9,335,000 | United Water & Sanitation District Revenue Series 2004B, 6.00% to yield 6.05% due 12/1/2012 | 9,196,468 | ||||||
20,400,000 | United Water & Sanitation District (Lupton Lakes Water Storage Project and Water Activity Enterprise) Revenue Bonds, Series 2006, 6.00% due 3/1/2021 | 19,060,128 | ||||||
500,000 | Wheatlands Metropolitan District No. 2 G.O. (LTD Tax Convertible to Unlimited Tax) Series 2005, 6.00% due 12/1/2025 | 434,650 | ||||||
2,060,000 | Wildgrass Metropolitan District G.O. (LTD Tax Convertible to Unlimited Tax) Refunding Series 2007, 6.20% to yield 5.25% due 12/1/2034 | 1,823,656 | ||||||
500,000 | Wyndham Hill Metropolitan District No. 2 G.O. LTD Tax Series 2005, 6.25% due 12/1/2025 | 450,110 | ||||||
Total Colorado Municipal Bonds (cost $477,969,055) | $ | 479,006,591 | ||||||
Colorado Capital Appreciation and Zero Coupon Bonds — 10.1% | ||||||||
27,777,698 | Bromley Park Metropolitan District No. 3 Subordinate LTD Tax G.O. Capital Appreciation Series 2006, 8.00% due 12/15/2031(b)(d) | $ | 5,142,208 | |||||
11,175,000 | Bromley Park Metropolitan District No. 2 G.O. LTD Tax Convertible Zero Coupon Series 2007B, 7.00% due 12/15/2037(d) | 7,471,493 | ||||||
520,000 | Colorado Health Facilities Authority Zero Coupon Retirement Housing Revenue (Liberty Heights Project) 1990 Subordinate Series B, 6.97% due 7/15/2020(b)(d) | 293,103 |
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Face Amount | Market Value | |||||||
Colorado Capital Appreciation and Zero Coupon Bonds — (Continued) | ||||||||
7,470,000 | Conifer Metropolitan District Jefferson County Supplemental Interest Coupons, Series 2006, 8.00% due 12/1/2010-2031(d) | $ | 2,734,916 | |||||
18,400,492 | Cottonwood Water and Sanitation District G.O. Second Lien (LTD Tax Through 2001) Refunding Series 1998A, Capital Appreciation 8.00% due 12/1/2027(d) | 6,123,868 | ||||||
500,000 | El Paso County School District No. 20 G.O. Refunding Series 1993A, Zero Coupon 6.10% due 6/15/2008(d) | 497,780 | ||||||
8,005,000 | McKay Landing Metropolitan District No. 2 Subordinate G.O. LTD Tax Refunding Series 2004B, Capital Appreciation 7.50% due 12/1/2031(b)(d) | 1,580,107 | ||||||
17,000,000 | PV Water and Sanitation Metropolitan District Capital Appreciation Revenue Series 2006, 6.00% due 12/15/2017(d) | 9,798,290 | ||||||
440,000 | Potomac Farms Metropolitan District Convertible Capital Appreciation G.O. Refunding and Improvement (LTD Tax Convertible to Unlimited Tax) Series 2007B, 7.25% due 12/1/2023(d) | 351,454 | ||||||
4,280,000 | Ravenna Metropolitan District Supplemental “B” Interest Registered Coupons, 8.25% due 12/1/2009-12/1/2023(d) | 2,016,139 | ||||||
906,622 | Roxborough Village Metropolitan District Series 1993C, 9.84% due 12/31/2032(d)(i) | 18,132 | ||||||
6,725,000 | Silver Peaks Metropolitan District No. 1 Revenue Series 2003, 8.00% due 12/1/2008-2012(d) | 5,517,150 | ||||||
9,655,000 | United Water & Sanitation District Ravenna Project Water Activity Enterprise Capital Appreciation Revenue Series 2006, 6.50% due 12/15/2011(d) | 7,713,862 | ||||||
7,130,000 | United Water & Sanitation District Ravenna Project Water Activity Enterprise Capital Appreciation Subordinate Series 2007, 6.125% due 12/1/2037(d) | 5,380,369 | ||||||
2,286,030 | United Water & Sanitation District Ravenna Project Water Activity Enterprise Capital Appreciation Subordinate Series 2006B, 7.00% due 12/15/2011(d) | 1,826,516 | ||||||
Total Colorado Capital Appreciation and Zero Coupon Bonds (cost $59,047,821) | $ | 56,465,387 | ||||||
Colorado Certificates of Participation — 0.1% | ||||||||
600,000 | Eagle-Vail Metropolitan District Building Authority (Golf Course Project) Series 1999, 6.00% due 12/1/2019 | $ | 551,952 | |||||
Total Colorado Certificates of Participation Bonds (cost $527,330) | $ | 551,952 | ||||||
Other Municipal Bonds — 4.3% | ||||||||
3,740,000 | Class B Revenue Bond Certificate Series Trust 2004-1 Variable Rate Senior Certificates of Beneficial Ownership, 2.61% due 7/1/2037(h) | $ | 3,740,000 |
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Face Amount | Market Value | |||||||
Other Municipal Bonds — (Continued) | ||||||||
4,904,915 | Freddie Mac Multifamily Variable Rate Certificates Series M001 Class B, 14.95% due 4/1/2037(g) | $ | 4,904,915 | |||||
996,000 | The Industrial Development Authority of the City of St. Louis, Missouri Senior Housing Revenue (Grant School Apartments) Series 2005A, 6.75% due 5/1/2027 | 903,930 | ||||||
688,000 | The Industrial Development Authority of the City of Kansas City, Missouri Multi-family Housing Revenue (Alexandria Apartments) Series 2005A, 6.75% due 1/1/2028 | 688,316 | ||||||
7,500,000 | Revenue Bond Certificate Series Trust 2005-4 Senior Certificates of Beneficial Ownership (Hermitage Apartments Project), 2.61% due 5/1/2031(h) | 7,500,000 | ||||||
5,000,000 | Uinta County School District Number 6 G. O. Refunding Series 2006, 7.00% to yield 4.40% due 12/1/2020 | 6,185,400 | ||||||
Total Other Municipal Bonds (cost $24,080,057) | $ | 23,922,561 | ||||||
Colorado Taxable Notes — 0% | ||||||||
227,347 | Note receivable from Tabernash Meadows, LLC, a Colorado limited liability company, 24.00% due 2/09/2002(a) | $ | 227,347 | |||||
Total Colorado Taxable Notes (cost $227,347) | $ | 227,347 | ||||||
Total investments, at value | 90.0 | % | $ | 560,173,838 | ||||||
Other assets net of liabilities | 10.0 | 62,328,887 | ||||||||
Net assets | 100.0 | % | $ | 622,502,725 | ||||||
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(a) | Defaulted or non-income producing based upon the financial condition of the issuer (see footnote 1 to notes to financial statements). | |
(b) | Originally issued as general obligation bonds but are now pre-refunded and are secured by an escrow fund consisting entirely of direct U.S. Government obligations. | |
(c) | Represents current interest rate for a step rate bond. | |
(d) | Interest rate shown for zero coupon bonds represents the effective yield at the date of acquisition. | |
(e) | Principal-only certificate represents the right to receive the principal payments on the underlying debt security upon maturity. The price of this security is typically more volatile than that of coupon-bearing bonds of the same maturity. | |
(f) | Interest-only certificate represents the right to receive semi-annual interest payments on the underlying debt security. The principal amount of the underlying security represents the notional amount on which current interest is calculated. The interest rate shown represents the effective yield at the date of acquisition. | |
(g) | Interest rate disclosed for cash flow bond represents the effective yield at March 31, 2008. Income on this security is derived from the cash flow of the issuer. | |
(h) | Represents current interest rate for a variable rate bond. | |
(i) | Terms of security have been restructured since the original issuance. The total face amount of all such restructured securities approximates $12,794,821 and a market value of $1,722,601 or less than 1% of net assets, respectively, as of March 31, 2008. |
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ASSETS | ||||
Investments, at value (amortized cost $561,851,610) | $ | 560,173,838 | ||
— see accompanying statement | ||||
Cash | 7,187,385 | |||
Interest receivable | 55,247,736 | |||
Receivable for shares of beneficial interest sold | 2,000,989 | |||
Receivable for investments sold/called/matured | 18,000 | |||
TOTAL ASSETS | 624,627,948 | |||
LIABILITIES | ||||
Payables and other liabilities: | ||||
Dividends payable | 1,362,950 | |||
Payable for shares redeemed | 262,322 | |||
Management fee payable | 262,508 | |||
Accrued expenses payable | 237,443 | |||
TOTAL LIABILITIES | 2,125,223 | |||
NET ASSETS | $ | 622,502,725 | ||
COMPOSITION OF NET ASSETS | ||||
Paid-in capital | $ | 624,121,259 | ||
Accumulated realized gain and losses | 59,238 | |||
Net unrealized appreciation of investments (note 3) | (1,677,772 | ) | ||
NET ASSETS | $ | 622,502,725 | ||
NET ASSET PRICE AND REDEMPTION PRICE PER SHARE (based on 66,345,681 shares of beneficial interest outstanding at March 31, 2008, unlimited number of no par value shares authorized) | $ | 9.38 | ||
MAXIMUM OFFERING PRICE PER SHARE (net asset value plus sales charge of 4.75% of offering price) | $ | 9.85 | ||
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INVESTMENT INCOME | ||||
Interest | $ | 18,631,291 | ||
EXPENSES | ||||
Management fees (note 4) | 1,446,794 | |||
Custodian fees & Interest Expense (note 5) | 33,059 | |||
Legal and auditing fees | 107,878 | |||
Portfolio pricing fees (note 5) | 6,357 | |||
Registration fees | 7,320 | |||
Shareholders’ reports | 40,672 | |||
Transfer agency expenses (note 4) | 54,189 | |||
Trustees’ fees | 2,104 | |||
Other | 8,063 | |||
Total expenses | 1,706,436 | |||
Less expenses paid indirectly | (16,136 | ) | ||
Net expenses | 1,690,300 | |||
NET INVESTMENT INCOME | 16,940,991 | |||
REALIZED AND UNREALIZED GAIN ON INVESTMENTS | ||||
Net realized gain on investments | 37,639 | |||
Change in net unrealized appreciation/depreciation on investments | (6,942,895 | ) | ||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS | (6,905,256 | ) | ||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 10,035,735 | ||
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Six Months | Year Ended | |||||||
Ended March 31, | September 30, | |||||||
2008 | 2007 | |||||||
(unaudited) | ||||||||
FROM OPERATIONS: | ||||||||
Net investment income | $ | 16,940,991 | $ | 29,539,836 | ||||
Net realized gain on investments | 37,639 | 1,431,255 | ||||||
Change in unrealized appreciation/depreciation on investments | (6,942,895 | ) | 1,624,145 | |||||
Net increase in net assets resulting from operations | 10,035,735 | 32,595,236 | ||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
Dividends to shareholders from net investment income | (16,940,991 | ) | (28,952,094 | ) | ||||
Realized capital gain and ordinary income | (1,415,431 | ) | — | |||||
Total distributions to shareholders | (18,356,422 | ) | (28,952,094 | ) | ||||
FROM BENEFICIAL INTEREST TRANSACTIONS: | ||||||||
Proceeds from sale of shares | 82,458,070 | 159,489,309 | ||||||
Proceeds from dividends reinvested | 11,820,854 | 17,207,808 | ||||||
Redemption of shares | (41,109,144 | ) | (43,249,603 | ) | ||||
Increase in net assets derived from beneficial interest transactions | 53,169,780 | 133,447,514 | ||||||
Net increase in net assets | 44,849,093 | 137,090,656 | ||||||
NET ASSETS: | ||||||||
Beginning of period | 577,653,632 | 440,562,976 | ||||||
End of period | $ | 622,502,725 | $ | 577,653,632 | ||||
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Six Months | ||||||||||||||||||||||||
Ended | For Fiscal Years Ended September 30, | |||||||||||||||||||||||
For a share outstanding throughout the period | 3/31/2008 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Net Asset Value, beginning of period | $ | 9.51 | $ | 9.45 | $ | 9.41 | $ | 9.35 | $ | 9.27 | $ | 9.33 | ||||||||||||
Net investment income(3) | 0.27 | 0.55 | 0.47 | 0.48 | 0.47 | 0.60 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.11 | ) | 0.05 | 0.06 | 0.07 | 0.08 | (0.06 | ) | ||||||||||||||||
Increase from investment operations | 0.16 | 0.60 | 0.53 | 0.55 | 0.55 | 0.54 | ||||||||||||||||||
Dividends to shareholders from net investment income | (0.27 | ) | (0.54 | ) | (0.47 | ) | (0.48 | ) | (0.47 | ) | (0.60 | ) | ||||||||||||
Distributions in excess of net investment income | — | — | (0.01 | ) | — | — | — | |||||||||||||||||
Realized capital gains and ordinary income | (0.02 | ) | — | (0.01 | ) | (0.01 | ) | — | — | |||||||||||||||
Total Distributions | (0.29 | ) | (0.54 | ) | (0.49 | ) | (0.49 | ) | (0.47 | ) | (0.60 | ) | ||||||||||||
Net increase (decrease) in net asset value | (0.13 | ) | 0.06 | 0.04 | 0.06 | 0.08 | (0.06 | ) | ||||||||||||||||
Net Asset Value, end of period | $ | 9.38 | $ | 9.51 | $ | 9.45 | $ | 9.41 | $ | 9.35 | $ | 9.27 | ||||||||||||
Total Return, at Net Asset Value(1) | 1.45 | %+ | 6.59 | %(*) | 5.72 | % | 6.14 | % | 6.19 | % | 5.96 | % | ||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||
Net investment income | 5.65 | %** | 5.78 | % | 4.97 | % | 5.10 | % | 5.08 | % | 6.46 | % | ||||||||||||
Total expenses | 0.57 | %** | 0.61 | % | 0.61 | % | 0.58 | % | 0.63 | % | 0.65 | % | ||||||||||||
Net expenses | 0.56 | %** | 0.56 | % | 0.57 | % | 0.55 | % | 0.60 | % | 0.61 | % | ||||||||||||
Net assets, end of period (000s) | $ | 622,503 | $ | 577,654 | $ | 440,563 | $ | 368,429 | $ | 312,651 | $ | 267,207 | ||||||||||||
Portfolio turnover rate(2) | 3.70 | % | 13.75 | % | 5.27 | % | 4.40 | % | 2.57 | % | 4.65 | % | ||||||||||||
(1) | Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. | |
(*) | The total return for fiscal year ended September 30, 2007 includes an interest payment of approximately $3.8 million representing four years of unpaid interest relating to the Fund’s holding of United Airlines/Denver International Airport bonds that is a non-recurring event outside of the control of the Fund. | |
(2) | The portfolio turnover rate is computed by dividing the lesser of purchases or sales of portfolio securities for a period by the monthly average of the market value of portfolio securities owned during the period. Sales of securities include the proceeds of securities which have been called, or for which payment has been made through redemption or maturity. Securities with a maturity date of one year or less at the time of acquisition are excluded from the calculation. Cost of purchases and proceeds from sales of investment securities (excluding short-term securities) for the period March 31, 2008 were $91,007,924 and $14,214,843, respectively. | |
(3) | Net investment income per share was calculated using an average shares method. | |
+ | Not Annualized | |
** | Annualized |
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(1) | Summary of Significant Accounting Policies |
(a) | Investment Valuation |
(b) | Income Taxes |
(c) | Other/Security Credit Risk |
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(d) | Uses of Estimates |
(e) | Classification of Distributions to Shareholders |
(f) | Securities Purchased on a When-Issued Basis |
(g) | New Accounting Pronouncements |
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(2) | Shares of Beneficial Interest |
Six Months Ended | Year Ended | |||||||||||||||
March 31, 2008 | September 30, 2007 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold | 8,723,050 | $ | 82,458,070 | 16,859,280 | $ | 159,489,309 | ||||||||||
Dividends reinvested | 1,250,143 | 11,820,854 | 1,818,953 | 17,207,808 | ||||||||||||
9,973,193 | 94,278,924 | 18,678,233 | 176,697,117 | |||||||||||||
Shares redeemed | (4,361,540 | ) | (41,109,144 | ) | (4,570,409 | ) | (43,249,603 | ) | ||||||||
Net increase in shares outstanding | 5,611,653 | $ | 53,169,780 | 14,107,824 | $ | 133,447,514 | ||||||||||
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Position held with | Principal Occupation | Other | ||||
the Fund and Length | During the | Directorships | ||||
Name, Address and Age | of Time Served | Past Five Years: | Held By Director | |||
George N. Donnelly 1200 17th Street, Suite 850 Denver CO 80202 Age: 61 | Chairman of the Board of Trustees Trustee since inception of the Fund in 1987 | Mr. Donnelly is currently a Senior Regional Vice President for Phoenix Life Insurance Company. | None | |||
Bruce G. Ely 1200 17th Street, Suite 850 Denver CO 80202 Age: 57 | Trustee since July 2002 | Mr. Ely is currently the Regional Marketing Director for MBIA Municipal Investors Service Corporation in Colorado. | None | |||
James R. Madden 1200 17th Street, Suite 850 Denver CO 80202 Age: 64 | Trustee since September 2004 | Mr. Madden has owned Madden Enterprises, a real estate company that owns and leases commercial buildings and real estate, for the past thirty years. | None | |||
Interested Trustees | ||||||
Andrew B. Shaffer1 1200 17th Street, Suite 850 Denver CO 80202 Age: 60 | Trustee, Secretary and Treasurer since June 1995 | Mr. Shaffer is the manager of Shaffer Capital Management/LLC. and President since January 2003 | None |
1 | Andrew B. Shaffer is an “interested person” of the Fund as defined in the Investment Company Act of 1940 (the “1940 Act”) by virtue of his position as both an officer and a trustee of the Fund as described in the table above. |
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(b) Not applicable.
MANAGEMENT INVESTMENT COMPANIES.
(a)(2)(i) | President’s (Principal Executive Officer) Section 302 Certification | |
(a)(2)(ii) | Treasurer’s (Principal Financial Officer) Section 302 Certification | |
(b) | Combined President & Treasurer (Principal Executive Officer and Principal Financial Officer) Section 906 Certification |
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Colorado BondShares — A Tax-Exempt Fund | |
By (Signature and Title) | /s/ Andrew B. Shaffer | |
Andrew B. Shaffer | ||
President, Secretary and Treasurer |
Date: | June 09, 2008 | |
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.
/s/ Andrew B. Shaffer | ||
Andrew B. Shaffer, | ||
President, Secretary and Treasurer | ||
(Principal Executive Officer and | ||
Principal Financial Officer) | ||
Date: June 09, 2008 |