N-CSR
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-06153
Integrity Managed Portfolios
(Exact name of registrant as specified in charter)
1 Main Street North, Minot, ND |
| 58703 |
(Address of principal offices) |
| (Zip code) |
Brent Wheeler and/or Kevin Flagstad, PO Box 500, Minot, ND 58702
(Name and address of agent for service)
Registrant's telephone number, including area code: 701-852-5292
Date of fiscal year end: July 31
Date of reporting period: July 30, 2010
Item 1. REPORTS TO STOCKHOLDERS.
[Logo]
INTEGRITY MANAGED PORTFOLIOS
Kansas Municipal Fund
Kansas Insured Intermediate Fund
Maine Municipal Fund
Nebraska Municipal Fund
New Hampshire Municipal Fund
Oklahoma Municipal Fund
Annual Report
July 30, 2010
Investment Adviser | Principal Underwriter |
|
|
Transfer Agent | Custodian |
|
|
Independent Registered Public Accounting Firm | |
*The Funds are distributed through Integrity Funds Distributor, LLC. Member FINRA | |
DEAR SHAREHOLDERS:
Enclosed is the report of the operations for the Kansas Municipal Fund, Kansas Insured Intermediate Fund, Nebraska Municipal Fund, Oklahoma Municipal Fund, Maine Municipal Fund, and New Hampshire Municipal Fund (each a "Fund", and collectively the "Funds") for the year ended July 30, 2010. The Funds' portfolios and related financial statements are presented within for your review.
The inflationary forces of massive fiscal stimulus combined with extremely accommodative monetary policy appears to have hit a brick wall with the disinflationary impact of high unemployment, output slack, lackluster economic results and lower consumer confidence. The recent FOMC (Federal Open Market Committee) meeting indicated a modest downward revision to the 2010 GDP (Gross Domestic Product) growth forecast and considerations for additional monetary stimulus.
The U.S. economy performed very much as expected over the first part of the period as most indicators showed moderate growth and a level of economic activity in the 3% range of GDP. Of course, nothing good lasts forever and during May and June there were a series of shocks to the market that changed the economic outlook.
First was the heightened anxiety over the Greek debt crisis which grew to the entire European financial system. This concern over the financial condition of Europe eventually created fear within the U.S. financial system and significant price declines followed in the U.S. equity markets. The Dow Jones Industrial Average lost 11% of its value in May and June bringing total returns for the year into negative territory. Next came the bad news concerning the Gulf of Mexico oil spill and the potential long-term impact on the region's economy and ecology that further eroded expectations for a healthy economic recovery.
All of these events seriously damaged consumer confidence and most economists now forecast economic growth in the 2% area with prolonged high unemployment and depressed consumer spending. With a slower economic growth many expect any prospects of a Federal Reserve hike in interest rates prolonged into late 2011 or 2012. Evidence of this came in Federal Reserve Chairman Ben Bernanke's testimony to Congress in which he said short-term rates were likely to remain exceptionally low for an extended period until the Fed feels a broader economic recovery has taken hold.
The municipal market continues to be driven by the crosscurrents of U.S. economic weakness, low Treasury yields and states' financial challenges. State and local municipal governments across the country are experiencing significant financial challenges. Without a doubt, hard choices will need to be made. Most are dealing with revenue shortfalls by cutting budgets and staff. Others are dealing with overly generous, under funded pensions, outdated compensation and benefit packages, under funded federally mandated programs and over ambitious capital projects. Most of the nation's state and local governments have been working to close the gaps for well over a year and we expect that this process will continue as the economy recovers.
A number of consistent themes emerged during the period: low yields and credit concerns. This is a classic good news/bad news conundrum. The value of good quality municipal bonds have appreciated during the period, while new money invested today is at considerably lower yields than a year earlier. The Funds use a disciplined strategy to maximize tax-exempt income for our shareholders by seeking high quality, higher coupon securities. By employing a buy and hold strategy and investing in securities we believe will provide relative value in the market, as interest rates fluctuate, the portfolios become diversified with a broad range of securities. This diversification helps mitigate interest rate and credit risk.
The Kansas Municipal Fund began the period at $10.45 per share and ended the period at $10.70 per share for a total return of 6.12%*. This compares to the Barclays Capital Municipal Bond Index's return of 9.16%. A primary function of the Fund is to search the primary and secondary markets for high quality issues for the portfolio. Some recent purchases during the period include: Manhattan, KS Sales Tax Rev, 5.25% coupon, due 2026; Sedgwick County Health Care, 5.00% coupon, due 2025; and Overland Park Sales Tax Rev, 5.20% coupon, due 2020.
The Kansas Insured Intermediate Fund began the period at $11.09 per share and ended the period at $11.29 per share for a total return of 5.26%*. This compares to the Barclays Capital Municipal 7-Year Bond Index's return of 7.61%. A primary function of the Fund is to search the primary and secondary markets for high quality issues for the portfolio. Some recent purchases during the period include: Douglas County USD # 491, 4.00% coupon, due 2022; Junction City General Obligation, 3.00% coupon, due 2016; and Sedgwick & Shawnee County Single Family Rev, 3.70% coupon, due 2019.
The Nebraska Municipal Fund began the period at $10.01 per share and ended the period at $10.22 per share for a total return of 5.64%*. This compares to the Barclays Capital Municipal Bond Index's return of 9.16%. A primary function of the Fund is to search the primary and secondary markets for high quality issues for the portfolio. Some recent purchases during the period include: Douglas County School District #59, 4.55% coupon, due 2032; Sarpy County Hospital Authority #1, 5.50% coupon, due 2030; and Washington County Water Waste Facility, 4.85% coupon, due 2035.
The Oklahoma Municipal Fund began the period at $10.78 per share and ended the period at $11.19 per share for a total return of 7.61%*. This compares to the Barclays Capital Municipal Bond Index's return of 9.16%*. A primary function of the Fund is to search the primary and secondary markets for high quality issues for the portfolio. Some recent purchases during the period include: Tulsa Airport Rev, 5.75% coupon, due 2031; Collinsville Municipal Authority, 5.00% coupon, due 2035; and Rogers County Industrial Authority, 4.90% coupon, due 2035.
The Maine Municipal Fund began the period at $10.62 per share and ended the period at $10.85 per share for a total return of 5.49%*. This compares to the Barclays Capital Municipal Bond Index's return of 9.16%. A primary function of the Fund is to search the primary and secondary markets for high quality issues for the portfolio. Some recent purchases during the period include: Maine Turnpike Rev, 5.125% coupon, due 2030; Maine Health & Higher Ed, 5.00% coupon, due 2040; and Maine Housing Authority, 4.70% coupon, due 2027.
The New Hampshire Municipal Fund began the period at $10.50 per share and ended the period at $10.73 per share for a total return of 5.38%*. This compares to the Barclays Capital Municipal Bond Index's return of 9.16%. A primary function of the Fund is to search the primary and secondary markets for high quality issues for the portfolio. Some recent purchases during the period include: New Hampshire Housing Authority, 5.35% coupon, due 2040; New Hampshire Health & Education Rev, 6.00% coupon, due 2033; and New Hampshire Housing Authority, 4.65% coupon, due 2025.
Income exempt from federal income tax and each Fund's respective state tax (interest and dividend tax with respect to New Hampshire) with preservation of capital remains the primary objective of the Funds.
If you would like more frequent updates, please visit the Funds' website at www.integrityvikingfunds.com for daily prices along with pertinent Fund information.
Sincerely,
Monte Avery
Senior Portfolio Manager
The views expressed are those of Monte Avery, Senior Portfolio Manager with Viking Fund Management, LLC ("Viking Fund Management", "VFM", or the "Adviser"). The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector, the markets generally, or any of the funds in the Integrity Viking family of funds.
*Performance does not include applicable front-end or contingent deferred sales charges, which would have reduced the performance. For Kansas Municipal Fund, Kansas Insured Intermediate Fund, Nebraska Municipal Fund, Oklahoma Municipal Fund, Maine Municipal Fund, and New Hampshire Municipal Fund, the total annual fund operating expense ratio (before expense waivers and reimbursements and including acquired fund fees and expenses) as of the most recent fiscal year-end was 1.33%, 1.21%, 1.37%, 1.36%, 1.47%, and 2.48%, respectively. The net annual fund operating expense ratio (after expense waivers and reimbursements and excluding acquired fund fees and expenses) as of the most recent fiscal year-end was 1.07%, 0.75%, 1.07%, 1.07%, 1.07%, and 1.07%, respectively.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider each Fund's investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
Bond prices and therefore the value of bond funds decline as interest rates rise. Because each Fund invests in securities of a single state, the Funds are more susceptible to factors adversely impacting the respective state securities more so than a municipal bond fund that does not concentrate its securities in a single state.
For investors subject to the alternative minimum tax, a portion of the each Fund's dividends may be taxable. Distributions of capital gains are generally taxable.
KANSAS MUNICIPAL FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment in the Fund and the Barclays Capital Municipal Bond Index
| Kansas Municipal Fund without Sales Charge | Kansas Municipal Fund with Maximum Sales Charge | Barclays Capital Municipal Bond Index |
7/31/00 | $10,000 | $9,578 | $10,000 |
7/31/01 | $10,813 | $10,357 | $11,009 |
7/31/02 | $11,189 | $10,717 | $11,748 |
7/31/03 | $11,106 | $10,637 | $12,170 |
7/30/04 | $11,296 | $10,819 | $12,874 |
7/29/05 | $11,320 | $10,843 | $13,693 |
7/31/06 | $11,817 | $11,318 | $14,043 |
7/31/07 | $12,178 | $11,664 | $14,642 |
7/31/08 | $12,531 | $12,003 | $15,058 |
7/31/09 | $13,040 | $12,490 | $15,827 |
7/30/10 | $13,838 | $13,254 | $17,277 |
Average Annual Total Returns for the periods ended July 30, 2010
| 1 year | 3 year | 5 year | 10 year | Since Inception |
Without sales charge | 6.12% | 4.35% | 4.10% | 3.30% | 4.51% |
With sales charge (4.25%) | 1.64% | 2.84% | 3.20% | 2.86% | 4.28% |
Putting Performance into Perspective
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund's investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares.
The graph comparing the Fund's performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund's total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends.
The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser.
KANSAS INSURED INTERMEDIATE FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment in the Fund and the Barclays Capital Municipal Seven-Year Maturity Bond Index
| Kansas Insured Intermediate Fund without Sales Charge | Kansas Insured Intermediate Fund with Maximum Sales Charge | Barclays Capital Municipal Seven-Year Maturity Bond Index |
7/31/00 | $10,000 | $9,725 | $10,000 |
7/31/01 | $10,673 | $10,380 | $10,918 |
7/31/02 | $11,112 | $10,807 | $11,696 |
7/31/03 | $11,253 | $10,944 | $12,147 |
7/30/04 | $11,513 | $11,197 | $12,699 |
7/29/05 | $11,427 | $11,113 | $13,202 |
7/31/06 | $11,891 | $11,565 | $13,486 |
7/31/07 | $12,288 | $11,951 | $14,016 |
7/31/08 | $12,856 | $12,503 | $14,833 |
7/31/09 | $13,527 | $13,155 | $16,021 |
7/30/10 | $14,238 | $13,847 | $17,241 |
Average Annual Total Returns for the periods ended July 30, 2010
| 1 year | 3 year | 5 year | 10 year | Since Inception |
Without sales charge | 5.26% | 5.03% | 4.50% | 3.60% | 4.06% |
With sales charge (2.75%) | 2.40% | 4.05% | 3.92% | 3.31% | 3.90% |
Putting Performance into Perspective
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund's investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares.
The graph comparing the Fund's performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund's total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends.
The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser.
NEBRASKA MUNICIPAL FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment in the Fund and the Barclays Capital Municipal Bond Index
| Nebraska Municipal Fund without Sales Charge | Nebraska Municipal Fund with Maximum Sales Charge | Barclays Capital Municipal Bond Index |
7/31/00 | $10,000 | $9,571 | $10,000 |
7/31/01 | $11,002 | $10,530 | $11,009 |
7/31/02 | $11,449 | $10,958 | $11,748 |
7/31/03 | $11,356 | $10,869 | $12,170 |
7/30/04 | $11,764 | $11,259 | $12,874 |
7/29/05 | $11,742 | $11,238 | $13,693 |
7/31/06 | $12,317 | $11,789 | $14,043 |
7/31/07 | $12,707 | $12,162 | $14,642 |
7/31/08 | $13,061 | $12,501 | $15,058 |
7/31/09 | $13,545 | $12,964 | $15,827 |
7/30/10 | $14,309 | $13,695 | $17,277 |
Average Annual Total Returns for the periods ended July 30, 2010
| 1 year | 3 year | 5 year | 10 year | Since Inception |
Without sales charge | 5.64% | 4.04% | 4.03% | 3.65% | 3.86% |
With sales charge (4.25%) | 1.19% | 2.54% | 3.13% | 3.19% | 3.59% |
Putting Performance into Perspective
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund's investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares.
The graph comparing the Fund's performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund's total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends.
The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser.
OKLAHOMA MUNICIPAL FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment in the Fund and the Barclays Capital Municipal Bond Index
| Oklahoma Municipal Fund without Sales Charge | Oklahoma Municipal Fund with Maximum Sales Charge | Barclays Capital Municipal Bond Index |
7/31/00 | $10,000 | $9,573 | $10,000 |
7/31/01 | $10,978 | $10,509 | $11,009 |
7/31/02 | $11,577 | $11,082 | $11,748 |
7/31/03 | $11,609 | $11,113 | $12,170 |
7/30/04 | $12,034 | $11,521 | $12,874 |
7/29/05 | $12,397 | $11,868 | $13,693 |
7/31/06 | $12,942 | $12,390 | $14,043 |
7/31/07 | $13,343 | $12,774 | $14,642 |
7/31/08 | $13,478 | $12,902 | $15,058 |
7/31/09 | $14,055 | $13,455 | $15,827 |
7/30/10 | $15,125 | $14,479 | $17,277 |
Average Annual Total Returns for the periods ended July 30, 2010
| 1 year | 3 year | 5 year | 10 year | Since Inception |
Without sales charge | 7.61% | 4.27% | 4.06% | 4.22% | 4.19% |
With sales charge (4.25%) | 3.03% | 2.77% | 3.15% | 3.77% | 3.86% |
Putting Performance into Perspective
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund's investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares.
The graph comparing the Fund's performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund's total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends.
The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser.
MAINE MUNICIPAL FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment in the Fund and the Barclays Capital Municipal Bond Index
| Maine Municipal Fund without Sales Charge | Maine Municipal Fund with Maximum Sales Charge | Barclays Capital Municipal Bond Index |
7/31/00 | $10,000 | $9,571 | $10,000 |
7/31/01 | $10,793 | $10,330 | $11,009 |
7/31/02 | $11,351 | $10,864 | $11,748 |
7/31/03 | $11,604 | $11,107 | $12,170 |
7/30/04 | $12,063 | $11,545 | $12,874 |
7/29/05 | $11,973 | $11,460 | $13,693 |
7/31/06 | $12,466 | $11,932 | $14,043 |
7/31/07 | $12,827 | $12,277 | $14,642 |
7/31/08 | $13,266 | $12,697 | $15,058 |
7/31/09 | $13,959 | $13,360 | $15,827 |
7/30/10 | $14,725 | $14,094 | $17,277 |
Average Annual Total Returns for the periods ended July 30, 2010
| 1 year | 3 year | 5 year | 10 year | Since Inception |
Without sales charge | 5.49% | 4.71% | 4.22% | 3.95% | 4.84% |
With sales charge (4.25%) | 1.02% | 3.22% | 3.33% | 3.49% | 4.60% |
Putting Performance into Perspective
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund's investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares.
The graph comparing the Fund's performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund's total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends.
The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser.
NEW HAMPSHIRE MUNICIPAL FUND
PERFORMANCE (unaudited)
Comparison of change in value of a $10,000 investment in the Fund and the Barclays Capital Municipal Bond Index
| New Hampshire Municipal Fund without Sales Charge | New Hampshire Municipal Fund with Maximum Sales Charge | Barclays Capital Municipal Bond Index |
7/31/00 | $10,000 | $9,577 | $10,000 |
7/31/01 | $10,736 | $10,282 | $11,009 |
7/31/02 | $11,296 | $10,818 | $11,748 |
7/31/03 | $11,560 | $11,071 | $12,170 |
7/30/04 | $12,108 | $11,596 | $12,874 |
7/29/05 | $11,889 | $11,387 | $13,693 |
7/31/06 | $12,336 | $11,814 | $14,043 |
7/31/07 | $12,709 | $12,171 | $14,642 |
7/31/08 | $13,181 | $12,624 | $15,058 |
7/31/09 | $13,793 | $13,210 | $15,827 |
7/30/10 | $14,535 | $13,920 | $17,277 |
Average Annual Total Returns for the periods ended July 30, 2010
| 1 year | 3 year | 5 year | 10 year | Since Inception |
Without sales charge | 5.38% | 4.58% | 4.10% | 3.81% | 4.50% |
With sales charge (4.25%) | 0.86% | 3.09% | 3.21% | 3.36% | 4.24% |
Putting Performance into Perspective
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. You can obtain performance data current to the most recent month end (available within seven business days of the most recent month end) by calling 800-276-1262.
You should consider the Fund's investment objectives, risks, charges, and expenses carefully before investing. For this and other important information, please obtain a Fund prospectus at no cost from your financial adviser and read it carefully before investing.
The table and graph above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions and redemptions of Fund shares.
The graph comparing the Fund's performance to a benchmark index provides you with a general sense of how the Fund performed. To put this information in context, it may be helpful to understand the special differences between the two. The Fund's total return for the period shown appears with and without sales charges and includes Fund expenses and management fees. A securities index measures the performance of a theoretical portfolio. Unlike a fund, the index is unmanaged; there are no expenses that affect the results. In addition, few investors could purchase all of the securities to match the index. If they could, transaction costs and other expenses would be incurred. All Fund and benchmark returns include reinvested dividends.
The results prior to August 1, 2009 were achieved while the Fund was managed by a different investment adviser. The current investment adviser may produce different investment results than those achieved by the previous investment adviser.
KANSAS MUNICIPAL FUND
SCHEDULE OF INVESTMENTS July 30, 2010
|
| Principal |
| Fair |
|
|
|
|
|
MUNICIPAL BONDS (97.0%) |
|
|
|
|
|
|
|
|
|
Education (5.4%) |
|
|
|
|
Hutchinson, KS Community College 5.000% 10/01/25 | $ | 350,000 | $ | 361,036 |
Hutchinson, KS Community College 5.250% 10/01/30 |
| 300,000 |
| 306,273 |
Hutchinson, KS Community College 5.250% 10/01/33 |
| 450,000 |
| 457,650 |
KS Dev. Fin. Auth. Sales Tax Rev. K-St-Olathe Innovation-L1 5.000% 09/01/39 |
| 200,000 |
| 208,126 |
KS Devl. Finance Auth. Rev. (Univ. KS Research Cent.) 5.000% 02/01/26 |
| 500,000 |
| 521,585 |
Washburn Univ. (Living Learning Ctr.) Bldg. Rev. 5.000% 07/01/19 |
| 700,000 |
| 721,175 |
|
|
|
| 2,575,845 |
General Obligation (28.7%) |
|
|
|
|
Cowley Cnty., KS USD #465 (Winfield) 5.250% 10/01/14 |
| 250,000 |
| 283,205 |
Dickinson Cnty, KS USD #473 5.000% 09/01/27 |
| 325,000 |
| 359,492 |
Dodge, KS School District #443 5.000% 09/01/11 |
| 1,000,000 |
| 1,039,410 |
Douglas Cty., KS Sales Tax Ref. 5.000% 08/01/19 |
| 1,000,000 |
| 1,073,370 |
Douglas Cnty, KS Uni Sch Dist 491 Eudora Sch Bldg 5.125% 09/01/29 |
| 250,000 |
| 261,788 |
Harvey Cty., KS USD #373 (Newton) 5.000% 09/01/23 |
| 200,000 |
| 219,924 |
Harvey Cty., KS USD #373 (Newton) 5.000% 09/01/25 |
| 1,000,000 |
| 1,079,330 |
*Johnson Cty., KS USD #231 Gardner-Edgerton 5.000% 10/01/24 |
| 1,135,000 |
| 1,170,707 |
Johnson Cty., KS USD #232 (Desoto) 5.250% 09/01/23 |
| 500,000 |
| 546,755 |
Junction City, KS Ref & Impt 5.000% 09/01/25 |
| 250,000 |
| 260,348 |
Junction City, KS Unlimited GO 4.100% 09/01/20 |
| 100,000 |
| 107,096 |
Junction City, KS Unlimited GO 4.250% 09/01/21 |
| 100,000 |
| 106,907 |
Junction City, KS Unlimited GO 4.400% 09/01/22 |
| 100,000 |
| 107,674 |
Junction City, KS Unlimited G.O. 4.500% 09/01/31 |
| 250,000 |
| 247,105 |
Lawrence, KS (Unlimited Tax) Refunding G.O. 5.375% 09/01/20 |
| 500,000 |
| 501,770 |
Leavenworth Cnty., KS USD #453 GO Improvement & Refunding 5.125% 03/01/29 |
| 1,000,000 |
| 1,080,460 |
Manhattan, KS General Obligation 5.000% 11/01/28 |
| 130,000 |
| 142,497 |
Montgomery County, KS USD #446 5.000% 09/01/33 |
| 250,000 |
| 261,787 |
Newton, KS Unlimited G.O. 4.750% 09/01/29 |
| 435,000 |
| 458,725 |
Park City, KS 6.000% 12/01/29 |
| 500,000 |
| 557,960 |
Park City, KS General Obligation Ref & Impr. 5.375% 12/01/25 |
| 250,000 |
| 253,735 |
Reno Cty., KS USD #308 Hutchinson 4.500% 09/01/23 |
| 500,000 |
| 530,150 |
Salina, KS (General Obligation) 4.625% 10/01/27 |
| 200,000 |
| 209,788 |
Sedgwick Cty., KS Uni Sch Dist #262 5.000% 09/01/28 |
| 500,000 |
| 536,135 |
Seward County, KS Unlimited GO Hospital Ref & Imvt 5.000% 08/01/40 |
| 500,000 |
| 513,065 |
Shawnee Cty., KS G.O. 5.000% 09/01/16 |
| 655,000 |
| 756,571 |
Topeka, KS G.O. 5.000% 08/15/21 |
| 400,000 |
| 404,324 |
Wyandotte Cnty., KS General Obligation 5.000% 08/01/27 |
| 500,000 |
| 538,490 |
|
|
|
| 13,608,568 |
Health Care (18.6%) |
|
|
|
|
KS St Dev Fin Auth Lease Rev Univ Kansas Tenant 5.000% 06/15/39 |
| 1,000,000 |
| 1,015,800 |
KS ST Dev Fin Auth. Hosp. Rev. Adventist Health 5.150% 11/15/23 |
| 250,000 |
| 268,397 |
KS St Dev Fin Auth Rev Adventist Health 5.250% 11/15/24 |
| 250,000 |
| 264,832 |
KS St Dev Fin Auth Hosp Rev Adventist Health 5.500% 11/15/29 |
| 100,000 |
| 107,728 |
KS St Dev Fin Auth. Adventist Health 5.750% 11/15/34 |
| 250,000 |
| 258,252 |
KS Devl. Finance Auth. (Hays Medical Center) 5.000% 11/15/22 |
| 500,000 |
| 522,340 |
KS Devlop. Fin. Auth Stormont-Vail Healthcare 5.125% 11/15/36 |
| 500,000 |
| 503,955 |
*KS Devl. Finance Auth. (Stormont Vail) Hlth. Care Rev. - Unrefunded 5.375% 11/15/24 |
| 1,365,000 |
| 1,380,370 |
Lawrence, KS (Memorial Hospital) Rev. 5.125% 07/01/26 |
| 500,000 |
| 508,990 |
Lawrence, KS (Memorial Hospital) Rev. 5.125% 07/01/36 |
| 300,000 |
| 286,968 |
Manhattan, KS Hosp. Rev. Mercy Health Center 5.500% 08/15/20 |
| 250,000 |
| 253,282 |
Olathe, KS (Medl. Ctr.) Hlth. Facs. Rev. 5.500% 09/01/25 |
| 235,000 |
| 235,254 |
Olathe, KS (Medl. Ctr.) Hlth. Facs. Rev. 5.500% 09/01/30 |
| 500,000 |
| 500,275 |
Olathe, Health Fac Rev (Med Center) 5.00% 09/01/29 |
| 500,000 |
| 497,785 |
Sedgwick Cty., KS Health Care Rev. (Catholic Care Center) 5.000% 08/01/25 |
| 1,000,000 |
| 1,009,230 |
University KS Hosp Auth. (KU Health) 5.000% 09/01/26 |
| 100,000 |
| 101,787 |
Wichita, KS (Via Christi Health System) Rev. 5.625% 11/15/31 |
| 1,100,000 |
| 1,112,826 |
|
|
|
| 8,828,071 |
Housing (5.6%) |
|
|
|
|
Kansas City, KS Mrtge. Rev. 5.900% 11/01/27 |
| 185,000 |
| 185,067 |
*Olathe, KS Multifamily Hsg. (Bristol Pointe) Rev. Ref. 5.700% 11/01/27 |
| 2,210,000 |
| 2,211,216 |
Sedgewick & Shawnee Cntys Kans Single Family Rev Mtg-Market Bds-Ser A-1 4.650% 06/01/28 |
| 250,000 |
| 250,213 |
|
|
|
| 2,646,496 |
Other Revenue (14.0%) |
|
|
|
|
Butler Cnty., KS Public Bldg. 5.550% 10/01/21 |
| 300,000 |
| 302,139 |
Coffeyville, KS Pub. Bldg. (Coffeyville Medl. Center) Rev. 5.000% 08/01/22 |
| 250,000 |
| 250,990 |
Dodge City, KS Sales Tax Rev 5.250% 06/01/31 |
| 1,000,000 |
| 1,067,890 |
KS St Dev Fin Auth Lease Rev (Juvenile Justice) 5.250% 05/01/13 |
| 570,000 |
| 590,816 |
KS Devl. Finance Auth. (KS St. Project) Rev. - Prerefunded 5.000% 10/01/17 |
| 130,000 |
| 137,095 |
KS Devl. Finance Auth. (KS St. Projects) Rev. - Unrefunded 5.000% 10/01/17 |
| 120,000 |
| 124,723 |
*KS Devl. Finance Auth. Rev. (KS St. Projects) 5.000% 05/01/26 |
| 1,335,000 |
| 1,416,928 |
KS St Dev Fin Auth Rev State of KS Projects 5.000% 11/01/34 |
| 500,000 |
| 525,475 |
KS Devl. Finance Auth. Rev. (Dept. Admin.) 5.000% 11/01/25 |
| 250,000 |
| 269,168 |
KS Devl. Finance Auth. Rev. (KS St. Projects) 5.250% 11/01/25 |
| 250,000 |
| 276,485 |
KS Devl. Finance Auth. Rev. (Athletic Facs. University of KS) 5.000% 06/01/33 |
| 250,000 |
| 255,998 |
KS Devl. Finance Auth. Rev. (KS St. Projects) 5.000% 05/01/35 |
| 250,000 |
| 261,428 |
Lincoln Cnty., KS Public Bldg (Lincoln County Hosp) 5.000% 03/01/28 |
| 125,000 |
| 137,231 |
Manhattan, KS Sales Tax Rev. Downtown Redevelopment 5.250% 12/01/26 |
| 250,000 |
| 254,905 |
Manhattan, KS Spl Oblig Rev North Proj Area - Downtown A 5.000% 12/01/26 |
| 500,000 |
| 507,660 |
Topeka Pub. Bldg. Comm. Lease Rev. Social & Rehab Project 5.000% 06/01/22 |
| 255,000 |
| 282,716 |
|
|
|
| 6,661,647 |
Prerefunded (0.8%) |
|
|
|
|
KS St Dev Fin Auth Lease Rev (Dept of Admin Cap Rest) 5.375% 10/01/20 |
| 370,000 |
| 373,208 |
|
|
|
|
|
Transportation (6.2%) |
|
|
|
|
Kansas Dept. Transportation Highway Rev. 5.000% 03/01/23 |
| 250,000 |
| 266,695 |
KS Devl. Finance Auth. Rev. (Road Revolving Fund) 4.625% 10/01/26 |
| 250,000 |
| 267,860 |
KS Turnpike Auth. Rev. 5.250% 09/01/21 |
| 500,000 |
| 527,465 |
KS Turnpike Auth. Rev. 5.000% 09/01/24 |
| 330,000 |
| 341,213 |
KS Turnpike Auth. Rev. 5.000% 09/01/25 |
| 750,000 |
| 773,205 |
Overland Park, KS Trans. Devl. Dist., Sales Tax Rev. Oak Park Mall 5.200% 04/01/20 |
| 500,000 |
| 524,080 |
Puerto Rico Highway Rev 4.950% 07/01/26 |
| 250,000 |
| 256,658 |
|
|
|
| 2,957,176 |
Utilities (17.7%) |
|
|
|
|
Burlington, KS PCR (Gas & Elec.) 5.300% 06/01/31 |
| 1,000,000 |
| 1,003,360 |
Burlington, KS PCR (Gas & Elec.) 4.850% 06/01/31 |
| 500,000 |
| 503,965 |
*KS Devl. Finance Auth. (Water Pollution Control) Rev. 5.250% 05/01/11 |
| 250,000 |
| 250,040 |
KS Devl. Finance Auth. (Water Pollution Control) Rev. 5.250% 11/01/22 |
| 1,000,000 |
| 1,053,300 |
KS Devl. Finance Auth. (Water Pollution Control) 5.000% 11/01/23 |
| 1,000,000 |
| 1,040,090 |
KS Devl. Finance Auth. Rev. (Water Pollution) 5.000% 11/01/28 |
| 250,000 |
| 260,015 |
Puerto Rico Electric Power Auth. Power Rev. 5.250% 07/01/26 |
| 750,000 |
| 789,555 |
Wamego, KS PCR (Kansas Gas & Electric Project) 5.300% 06/01/31 |
| 750,000 |
| 757,965 |
Wichita, KS Water & Sewer Util. Rev. 5.250% 10/01/18 |
| 1,465,000 |
| 1,579,446 |
Wichita, KS Water & Sewer Util. Rev. 5.000% 10/01/28 |
| 500,000 |
| 511,675 |
Wichita, KS Water & Sewer Rev. 5.000% 10/01/23 |
| 100,000 |
| 110,525 |
Wyandotte Cnty/Kansas City, KS Govt Utilitiy Sys Rev. 5.000% 09/01/29 |
| 500,000 |
| 544,855 |
|
|
|
| 8,404,791 |
|
|
|
|
|
TOTAL MUNICIPAL BONDS (COST: $44,605,858) |
|
| $ | 46,055,802 |
|
|
|
|
|
SHORT-TERM SECURITIES (2.4%) |
| Shares |
|
|
Wells Fargo Advantage National Tax-Free Money Market 0.160% (COST: $1,114,434) |
| 1,114,434 | $ | 1,114,434 |
|
|
|
|
|
TOTAL INVESTMENTS IN SECURITIES (COST: $45,720,292) (99.4%) |
|
| $ | 47,170,236 |
OTHER ASSETS LESS LIABILITIES (0.6%) |
|
|
| 294,426 |
|
|
|
|
|
NET ASSETS (100.0%) |
|
| $ | 47,464,662 |
|
|
|
|
|
* Indicates bonds are segregated by the custodian to cover when-issued or delayed-delivery purchases. | ||||
As of July 30, 2010, the Fund had one when-issued purchase: | ||||
$250,000 of Sedgwick & Shawnee Cntys Kans Single Family Rev Mtg, 4.650%; 06/01/28 |
The accompanying notes are an integral part of these financial statements.
KANSAS INSURED INTERMEDIATE FUND
SCHEDULE OF INVESTMENTS July 30, 2010
|
| Principal |
| Fair |
|
|
|
|
|
MUNICIPAL BONDS (95.3%) |
|
|
|
|
|
|
|
|
|
Education (2.5%) |
|
|
|
|
Johnson Cty., KS Community College Student Commons & Parking 5.000% 11/15/19 | $ | 235,000 | $ | 246,947 |
Washburn Univ. (Living Learning Ctr.) Bldg. Rev. 5.000% 07/01/19 |
| 255,000 |
| 262,714 |
|
|
|
| 509,661 |
General Obligation (53.7%) |
|
|
|
|
Butler Cnty., KS USD #402 5.250% 09/01/21 |
| 560,000 |
| 630,493 |
*Butler Cnty, KS USD #385 5.000% 09/01/18 |
| 500,000 |
| 571,455 |
Cowley Cnty., KS USD #470 4.750% 09/01/23 |
| 100,000 |
| 108,512 |
Cowley Cnty., KS USD #465 (Winfield) 5.250% 10/01/14 |
| 140,000 |
| 158,595 |
Crawford Cnty., KS School Distist 5.000% 09/01/20 |
| 300,000 |
| 345,024 |
Dickinson Cnty, KS USD #473 4.500% 09/01/22 |
| 215,000 |
| 237,409 |
Douglas Cnty, KS USD #491 Eudora Schools 5.500% 09/01/24 |
| 250,000 |
| 279,350 |
Douglas Cnty, KS Uni Sch Dist 491 Eudora Sch Bldg 5.000% 09/01/23 |
| 375,000 |
| 411,394 |
Douglas County, KS USD #491 Eudora 4.000% 09/01/22 |
| 250,000 |
| 252,680 |
Ford Cnty., KS Sales Tax - Ser A 4.500% 09/01/24 |
| 500,000 |
| 531,705 |
Harvey Cty., KS USD #373 (Newton) 4.000% 09/01/18 |
| 250,000 |
| 266,767 |
Johnson Cty., KS USD #232 (Desoto) 5.000% 09/01/15 |
| 100,000 |
| 116,999 |
Johnson Cnty KS USD #233 4.000% 09/01/18 |
| 150,000 |
| 164,920 |
Junction City., KS Unlimited GO 4.500% 09/01/23 |
| 100,000 |
| 105,803 |
Junction City, KS Unlimited GO 3.000% 09/01/16 |
| 315,000 |
| 323,568 |
Leavenworth Cnty., KS USD #453 GO Improvement & Refunding 5.25% 03/01/24 |
| 200,000 |
| 223,560 |
Leavenworth Cnty., KS USD #453 4.750% 09/01/25 |
| 300,000 |
| 321,252 |
Leavenworth Cnty., KS USD #458 4.500% 09/01/28 |
| 250,000 |
| 256,005 |
Leoti, KS USD #467 5.000% 10/01/18 |
| 100,000 |
| 115,708 |
Miami Cnty KS USD #416 Louisberg Schools 4.000% 09/01/13 |
| 50,000 |
| 53,485 |
Montgomery County, KS USM #445 5.000% 04/01/21 |
| 100,000 |
| 105,349 |
Montgomery County, KS USD #446 4.000% 09/01/19 |
| 150,000 |
| 160,137 |
Morton Cty., KS USD #217 4.000% 09/01/10 |
| 100,000 |
| 100,005 |
Neosho County, KS USD #413 5.000% 09/01/20 |
| 345,000 |
| 370,737 |
Newton, KS Unlimited G.O. 5.000% 09/01/21 |
| 100,000 |
| 113,744 |
Olathe, Kansas General Obligation 10/01/19 4.000% |
| 100,000 |
| 107,680 |
Park City, KS 5.100% 12/01/20 |
| 200,000 |
| 227,616 |
Park City, KS 5.500% 12/01/24 |
| 100,000 |
| 113,782 |
Puerto Rico Commonwealth Public Improvement 5.500% 07/01/21 |
| 500,000 |
| 541,115 |
Saline Cty., KS USD #305 (Salina) G.O. Ref. 5.500% 09/01/15 |
| 190,000 |
| 200,425 |
Sedgwick Cnty KS, USD #262 5.000% 09/01/24 |
| 250,000 |
| 273,818 |
Sedgwick Cty., KS UNI School Dist. #262 5.000% 09/01/18 |
| 100,000 |
| 117,907 |
Sedgwick Cty., KS USD #265 (Goddard) 4.250% 10/01/20 |
| 250,000 |
| 264,358 |
Sedgwick Cty., KS USD #265 (Goddard) 4.500% 10/01/26 |
| 250,000 |
| 266,213 |
Sedgwick Cty., KS USD #266 Maize School 5.250% 09/01/20 |
| 360,000 |
| 418,223 |
Seward County, KS Unlimited GO Hospital Ref & Impvt 3.250% 08/01/18 |
| 250,000 |
| 262,033 |
Shawnee Cty., KS USD #437 (Auburn-Washburn) G.O. Ref. 5.000% 09/01/14 |
| 485,000 |
| 508,493 |
Wichita, KS GO 4.500% 09/01/22 |
| 150,000 |
| 161,979 |
Wichita, KS GO 4.750% 09/01/27 |
| 180,000 |
| 191,002 |
Wyandotte Cnty/Kansas Unified Gvt Unltd GO 5.000% 08/01/19 |
| 150,000 |
| 165,152 |
Wyandotte Cnty, KS. GO 5.00% 08/01/25 |
| 250,000 |
| 274,083 |
Wyandotte Cnty KS USD #203 4.250% 09/01/26 |
| 125,000 |
| 127,771 |
Wyandotte Cnty., KS USD #500 G.O. 5.250% 09/01/13 |
| 250,000 |
| 283,853 |
|
|
|
| 10,830,159 |
Health Care (5.6%) |
|
|
|
|
*KS Devl. Finance Auth. (Stormont Vail) Hlth. Care Rev. 5.750% 11/15/12 |
| 595,000 |
| 630,771 |
Manhattan, KS Hosp. Rev. Mercy Health Center 5.500% 08/15/20 |
| 500,000 |
| 506,565 |
|
|
|
| 1,137,336 |
Housing (9.3%) |
|
|
|
|
KS Devl. Finance Auth. (Sec. 8) Rev. Ref. 6.400% 01/01/24 |
| 255,000 |
| 255,303 |
*Mission, KS Multifamily Hsg. (Lamar Place) Rev. 5.000% 10/01/14 |
| 475,000 |
| 475,242 |
Mission, KS Multifamily Hsg. (Lamar Place) Rev. 5.180% 10/01/23 |
| 445,000 |
| 445,089 |
Olathe, KS Multifamily Hsg. (Bristol Pointe) Rev. Ref. 5.250% 11/01/12 |
| 260,000 |
| 260,120 |
Sedgwick & Shawnee Cnty KS Single Family Rev 3.700% 06/01/19 |
| 100,000 |
| 100,116 |
Sedgwick & Shawnee Cnty KS Single Family Rev 3.700% 12/01/19 |
| 190,000 |
| 190,139 |
*Shawnee, KS Multifamily Hsg. (Thomasbrooks Apts.) Rev. 5.250% 10/01/14 |
| 140,000 |
| 140,081 |
|
|
|
| 1,866,090 |
Other Revenue (13.2%) |
|
|
|
|
Dodge City, KS Sales Tax Rev 5.000% 06/01/21 |
| 310,000 |
| 346,971 |
Dodge City, KS Sales Tax Rev 4.400% 06/01/25 |
| 350,000 |
| 366,373 |
Dodge City KS Sales Tax Rev 4.500% 06/01/28 |
| 100,000 |
| 101,205 |
KS Devl Fin. Auth. Kansas Projects 5.250% 10/01/22 |
| 100,000 |
| 108,576 |
KS Devl. Finance Auth. (KS St. Project) Rev. - Prerefunded 5.000% 10/01/17 |
| 135,000 |
| 142,368 |
KS Devl. Finance Auth. (KS St. Projects) Rev. - Unrefunded 5.000% 10/01/17 |
| 115,000 |
| 119,526 |
KS Devl. Finance Auth. Rev. (KS St. Projects) 4.100% 05/01/19 |
| 250,000 |
| 266,970 |
KS Devl. Finance Auth. Rev. (KS St. Projects) 5.250% 11/01/25 |
| 100,000 |
| 110,594 |
Lincoln Cnty., KS Public Bldg (Lincoln County Hosp) 5.000% 03/01/28 |
| 125,000 |
| 137,231 |
Neosho County, KS Sales Tax Rev 4.000% 10/01/23 |
| 500,000 |
| 511,540 |
Sumner Cnty., KS Sales Tax Rev. 5.000% 10/01/14 |
| 400,000 |
| 460,640 |
|
|
|
| 2,671,994 |
Prerefunded (4.1%) |
|
|
|
|
*Chisholm Creek Util. Auth. (Bel Aire & Park City, KS Pj.) 5.250% 09/01/16 |
| 770,000 |
| 836,120 |
|
|
|
|
|
Transportation (1.4%) |
|
|
|
|
KS Turnpike Auth. Rev. 5.000% 09/01/24 |
| 200,000 |
| 206,796 |
KS Turnpike Auth. Rev. 5.000% 09/01/25 |
| 75,000 |
| 77,320 |
|
|
|
| 284,116 |
Utilities (5.5%) |
|
|
|
|
Burlington, KS PCR (Gas & Elec.) 5.300% 06/01/31 |
| 190,000 |
| 190,638 |
Kansas City, KS Util. Syst. Ref. & Impvt. 6.300% 09/01/16 |
| 45,000 |
| 45,018 |
Puerto Rico Electric Rev. 5.250% 07/01/25 |
| 250,000 |
| 267,920 |
Topeka, KS Utilities Rev 4.250% 08/01/21 |
| 150,000 |
| 152,043 |
Wichita, KS Water & Sewer Rev. 5.000% 10/01/23 |
| 200,000 |
| 221,050 |
Wyandotte Cnty/Kansas City, KS Govt Utilitiy Sys Rev. 5.000% 09/01/24 |
| 200,000 |
| 225,244 |
|
|
|
| 1,101,913 |
|
|
|
|
|
TOTAL MUNICIPAL BONDS (COST: $18,475,795) |
|
| $ | 19,237,389 |
|
|
|
|
|
SHORT-TERM SECURITIES (3.5%) |
| Shares |
|
|
Wells Fargo Advantage National Tax-Free Money Market 0.160% (COST: $696,536) |
| 696,536 | $ | 696,536 |
|
|
|
|
|
TOTAL INVESTMENTS IN SECURITIES (COST: $19,172,331) (98.8%) |
|
| $ | 19,933,925 |
OTHER ASSETS LESS LIABILITIES (1.2%) |
|
|
| 234,933 |
|
|
|
|
|
NET ASSETS (100.0%) |
|
| $ | 20,168,858 |
|
|
|
|
|
* Indicates bonds are segregated by the custodian to cover when-issued or delayed-delivery purchases. | ||||
As of July 30, 2010 the Fund had two when-issued purchases: | ||||
$190,000 of Sedgwick & Shawnee County, KS 3.700%; 12/01/19 | ||||
$100,000 of Sedgwick & Shawnee County, KS 3.700%; 06/01/19 |
The accompanying notes are an integral part of these financial statements.
NEBRASKA MUNICIPAL FUND
SCHEDULE OF INVESTMENTS July 30, 2010
|
| Principal |
| Fair |
|
|
|
|
|
MUNICIPAL BONDS (95.2%) |
|
|
|
|
|
|
|
|
|
Education (18.1%) |
|
|
|
|
Metropolitan Community College South Omaha Bldg. Proj. 4.500% 03/01/26 | $ | 1,000,000 | $ | 1,028,490 |
NE Educ. Finance Auth. (Wesleyan Univ.) Rev. 5.500% 04/01/27 |
| 1,000,000 |
| 1,008,310 |
University of NE Fac. Corp. Deferred Maintenance 5.000% 07/15/20 |
| 500,000 |
| 554,990 |
University NE, University Revs. Kearney Student Fees & Facs. 5.000% 07/01/35 |
| 600,000 |
| 621,900 |
Univ. of NE Board of Regents Student Facs. 5.00% 05/15/32 |
| 250,000 |
| 261,465 |
Univ. of NE Board of Regents (Heath & Rec. Proj.) 5.000% 05/15/33 |
| 600,000 |
| 630,780 |
University NE University Rev. Lincoln Student Fee 4.000% 07/01/24 |
| 250,000 |
| 258,138 |
University of NE Omaha Student Housing Project 4.500% 05/15/30 |
| 250,000 |
| 255,485 |
University of NE Omaha Student Housing Project 5.000% 05/15/35 |
| 275,000 |
| 288,981 |
Univ. of NE (U. of NE - Lincoln Student Fees) Rev. 5.125% 07/01/32 |
| 250,000 |
| 255,465 |
University of NE University Rev. Lincoln Student Facs. 5.000% 07/01/28 |
| 250,000 |
| 258,457 |
University of Puerto Rico 5.000% 06/01/17 |
| 650,000 |
| 677,911 |
|
|
|
| 6,100,372 |
General Obligation (33.6%) |
|
|
|
|
Dawson Cnty, NE SID #1 G.O. Ref (IBP, Inc. Proj.) 5.650% 02/01/22 |
| 700,000 |
| 624,890 |
*Dodge Cty., NE SD #001 (Fremont Public Schools) 5.500% 12/15/20 |
| 1,000,000 |
| 1,019,780 |
Douglas Cty., NE G.O. 4.750% 12/01/25 |
| 250,000 |
| 250,367 |
Douglas Cty., NE SID #397 (Linden Estates II) 5.600% 04/01/23 |
| 500,000 |
| 500,280 |
Douglas Cty., NE SD #010 (Elkhorn Pub. Schools) G.O. 4.500% 12/15/23 |
| 250,000 |
| 253,335 |
Douglas Cty., NE SD #010 (Elkhorn Public Schools) 4.500% 12/15/26 |
| 500,000 |
| 509,355 |
Douglas County, NE School Dist. #59 4.550% 12/15/32 |
| 635,000 |
| 639,534 |
Douglas Cnty School Dist #59 Bennington Public Schools 4.000% 12/15/28 |
| 250,000 |
| 245,835 |
Hall Cty., NE School Dist. #2 Grand Island 5.000% 12/15/23 |
| 500,000 |
| 549,675 |
Knox County School Dist #0583 Verdigre Schools 4.500% 12/15/29 |
| 250,000 |
| 250,898 |
Lancaster Cty., NE School Dist. #1 (Lincoln Public Schools) 5.250% 01/15/21 |
| 500,000 |
| 507,440 |
Lancaster Cty., NE School Dist. #1 (Lincoln Public Schools) G.O. 5.250% 01/15/22 |
| 500,000 |
| 524,845 |
Lancaster Cnty School Dist #160 Norris Schools 4.250% 12/15/25 |
| 400,000 |
| 404,484 |
Lincoln-Lancaster County Neb. Pub. Bldg. Lease Rev. 4.000% 10/15/30 |
| 100,000 |
| 100,073 |
Madison County School Dist #2 (Norfolk) 5.000% 12/15/25 |
| 1,545,000 |
| 1,642,196 |
Omaha, NE Various Purpose 5.000% 05/01/22 |
| 250,000 |
| 264,750 |
Omaha, NE Various Purpose 4.250% 10/15/26 |
| 500,000 |
| 521,285 |
Omaha, NE Unlimited GO 5.000% 10/15/25 |
| 250,000 |
| 281,158 |
Papillion, NE G.O. 4.350% 12/15/27 |
| 250,000 |
| 251,568 |
Sarpy Count School Dist.#27 Papillion-LA Vista GO 5.000% 12/01/28 |
| 250,000 |
| 267,253 |
Puerto Rico Commonwealth Public Improvement 5.500% 07/01/21 |
| 500,000 |
| 541,115 |
Saunders Cty., NE G.O. 5.000% 11/01/30 |
| 250,000 |
| 251,122 |
Saunders Cty., NE G.O. 4.250% 12/15/21 |
| 515,000 |
| 521,654 |
Scotts Bluff Cnty NE Sch Dist #32 GO Building Bonds 4.300% 12/15/29 |
| 440,000 |
| 442,490 |
|
|
|
| 11,365,382 |
Health Care (10.9%) |
|
|
|
|
Adams Cnty, NE Hosp Auth #1 Hosp Rev (Mary Lanning Memorial Hosp.) 5.300% 12/15/18 |
| 250,000 |
| 250,455 |
Adams Cnty, NE Hosp Auth #1 Hosp Rev (Mary Lanning Memorial Hosp.) 5.250% 12/15/33 |
| 250,000 |
| 239,992 |
Douglas Cty., NE Hosp. Auth. #001 (Alegent Hlth - Immanuel Med. Ctr.) Rev. 5.250% 09/01/21 |
| 250,000 |
| 249,340 |
Douglas Cty., NE Hosp. Auth. #002 (Nebraska Medical Center) 5.000% 11/15/16 |
| 250,000 |
| 275,635 |
Douglas Cty., NE (Catholic Health Corp.) Rev. 5.375% 11/15/15 |
| 160,000 |
| 160,205 |
Douglas County, NE Hosp. Methodist Health 5.500% 11/01/38 |
| 500,000 |
| 490,635 |
Douglas Cty, NE Hosp. Methodist Health 5.500% 11/01/38 |
| 250,000 |
| 254,918 |
*Lancaster Cty., NE Hosp. Auth. #1 (BryanLGH Medical Center Project) 4.750% 06/01/21 |
| 1,000,000 |
| 1,000,840 |
NE Invmt. Fin. Auth. (Great Plains Regional Medical Center) Rev. 5.450% 11/15/22 |
| 750,000 |
| 765,157 |
|
|
|
| 3,687,177 |
Housing (2.6%) |
|
|
|
|
Douglas County NE, Hosp. Auth. #1 Immanuel Oblig. Group 5.500% 01/01/30 |
| 250,000 |
| 252,378 |
NE Invmt. Finance Auth. Multifamily Hsg. Rev. 6.200% 06/01/28 |
| 135,000 |
| 135,013 |
Sarpy Cnty NE Hosp. Auth #1 Immanuel Oblig. Group 5.500% 01/01/30 |
| 500,000 |
| 501,090 |
|
|
|
| 888,481 |
Other Revenue (3.8%) |
|
|
|
|
*Omaha, NE (Riverfront Project) Special Obligation 5.500% 02/01/29 |
| 1,000,000 |
| 1,029,460 |
Puerto Rico Sales Tax Financing First Sub-SER A 5.000% 08/01/24 |
| 250,000 |
| 262,562 |
|
|
|
| 1,292,022 |
Transportation (0.8%) |
|
|
|
|
Puerto Rico Highway Rev 4.950% 07/01/26 |
| 250,000 |
| 256,657 |
|
|
|
|
|
Utilities (25.4%) |
|
|
|
|
Cornhusker Public Power Dist. Electric Rev. 4.650% 07/01/29 |
| 250,000 |
| 254,350 |
Dawson Cty. Public Power Electric Sys. Rev. 4.750% 12/01/32 |
| 250,000 |
| 254,202 |
Fremont, NE Combined Utilities Rev. 5.000% 10/15/21 |
| 500,000 |
| 511,045 |
*Lincoln, NE Elec. Syst. Rev. 5.000% 09/01/21 |
| 1,000,000 |
| 1,044,210 |
Lincoln, NE San. Swr. Rev. 4.500% 6/15/29 |
| 250,000 |
| 255,328 |
Lincoln, NE Water Rev. 5.000% 08/15/22 |
| 575,000 |
| 595,579 |
Lincoln, NE Water Rev. 4.000% 08/15/25 |
| 250,000 |
| 260,705 |
Lincoln, NE Water Rev. 4.500% 08/15/34 |
| 250,000 |
| 255,953 |
Municipal Energy Agy of NE Power Supply Rev. 5.125% 04/01/24 |
| 195,000 |
| 214,978 |
Omaha, NE Metropolitan Utility Water Dist. Rev 4.375% 12/01/26 |
| 400,000 |
| 413,200 |
Omaha Public Power Electric Rev. 5.250% 02/01/23 |
| 250,000 |
| 278,993 |
Omaha, NE Public Power Electric Rev. 5.000% 02/01/34 |
| 1,000,000 |
| 1,022,700 |
Omaha, NE Public Power Dist. Elec. Syst. Rev. 6.200% 02/01/17 |
| 650,000 |
| 782,015 |
Omaha, NE Public Power Dist. (Electric Rev) 4.750% 02/01/25 |
| 250,000 |
| 266,410 |
Omaha, NE Public Power Dist. (Electric Rev) 4.300% 02/01/31 |
| 100,000 |
| 97,731 |
Public Power Generation Agy Whelan Energy Rev 5.000% 01/01/32 |
| 500,000 |
| 508,415 |
Public Power Generation Agy. Whelan Energy Center 5.000% 01/01/27 |
| 250,000 |
| 262,837 |
Puerto Rico Electric Rev. 5.250% 07/01/25 |
| 250,000 |
| 267,920 |
Southern Public Power Dist. 5.00% 12/15/23 |
| 250,000 |
| 271,992 |
Washington Cnty NE Wastewater Facs Rev (Cargill Project) 4.850% 04/01/35 |
| 800,000 |
| 774,592 |
|
|
|
| 8,593,155 |
|
|
|
|
|
TOTAL MUNICIPAL BONDS (COST: $31,442,877) |
|
| $ | 32,183,246 |
|
|
|
|
|
SHORT-TERM SECURITIES (3.8%) |
| Shares |
|
|
Wells Fargo Advantage National Tax-Free Money Market 0.160% (COST: $1,285,539) |
| 1,285,539 | $ | 1,285,539 |
|
|
|
|
|
TOTAL INVESTMENTS IN SECURITIES (COST: $32,728,416) (99.0%) |
|
| $ | 33,468,785 |
OTHER ASSETS LESS LIABILITIES (1.0%) |
|
|
| 347,052 |
|
|
|
|
|
NET ASSETS (100.0%) |
|
| $ | 33,815,837 |
|
|
|
|
|
* Indicates bonds are segregated by the custodian to cover when-issued or delayed-delivery purchases. There were no when-issued purchases for the Fund as of July 30, 2010. |
The accompanying notes are an integral part of these financial statements.
OKLAHOMA MUNICIPAL FUND
SCHEDULE OF INVESTMENTS July 30, 2010
|
| Principal |
| Fair |
|
|
|
|
|
MUNICIPAL BONDS (96.1%) |
|
|
|
|
|
|
|
|
|
Education (33.7%) |
|
|
|
|
Claremore, OK Student Hsg. Rev. (Rogers University) 5.750% 09/01/34 | $ | 500,000 | $ | 451,735 |
Edmond Economic Dev. Auth., OK Student Housing Rev. 5.375% 12/01/19 |
| 200,000 |
| 200,410 |
Edmond Economic Dev. Auth., OK Student Housing Rev. 5.500% 12/01/28 |
| 865,000 |
| 787,954 |
McClain Cnty, OK Econ Dev Auth Ed Lease Rev (Purcell Schs) 4.250% 09/01/20 |
| 585,000 |
| 614,624 |
OK Board of Regents for OK ST Univ Rev 4.375% 08/01/35 |
| 200,000 |
| 196,270 |
OK Colleges Board of Regents (NE State Univ. Ctr.) Rev. 5.100% 03/01/16 |
| 140,000 |
| 140,073 |
OK Colleges Board of Regents (NE State Univ. Ctr.) Rev. 5.150% 03/01/21 |
| 100,000 |
| 100,038 |
OK Board of Regents (Univ. of Central OK) 5.600% 08/01/20 |
| 150,000 |
| 153,017 |
OK Board of Regents (Univ. of Central OK) 5.700% 08/01/25 |
| 390,000 |
| 397,823 |
OK Devl. Finance Auth Lease Rev Master St Higher Ed 4.400% 12/1/29 |
| 250,000 |
| 252,145 |
OK Devl. Finance Auth. (OK State Syst. Higher Ed.) 4.900% 12/01/22 |
| 200,000 |
| 207,538 |
OK Devl. Finance Auth. OK State Higher Ed (Master Lease) 4.500% 06/01/26 |
| 250,000 |
| 262,093 |
OK Devl. Finance Auth. (Seminole State College) 5.125% 12/01/27 |
| 150,000 |
| 155,586 |
OK Devl. Finance Auth. (Langston Univ. Stadium) 5.000% 07/01/27 |
| 250,000 |
| 259,948 |
OK Capital Impvt. Auth. (Higher Ed. Project) Rev. 5.000% 07/01/22 |
| 500,000 |
| 534,340 |
OK Capital Impvt. Auth. (Higher Ed. Project) 5.000% 07/01/24 |
| 250,000 |
| 264,253 |
*OK Capital Impvt. Auth. (Higher Ed. Project) Rev. 5.000% 07/01/30 |
| 1,000,000 |
| 1,035,480 |
Rural Enterprises, OK Inc Okmulgee Student Hsg Proj Ser A 5.625% 12/01/20 |
| 140,000 |
| 133,256 |
Rural Enterprises, OK Inc Okmulgee Student Hsg Proj Ser A 5.700% 12/01/25 |
| 220,000 |
| 197,921 |
Rural Enterprises, OK Inc Okmulgee Student Hsg Proj 5.750% 12/01/30 |
| 250,000 |
| 214,255 |
Rural Enterprises, OK Inc. Student Hsg. (Connors College) 5.550% 11/01/21 |
| 250,000 |
| 232,300 |
Rural Enterprises, OK Inc. Student Hsg. (Connors College) 5.650% 11/01/31 |
| 375,000 |
| 321,596 |
Rural Enterprises, OK Inc. USAOF Student Housing 5.550% 11/01/21 |
| 250,000 |
| 234,010 |
Rural Enterprises, OK Inc. USAOF Student Housing 5.650% 11/01/31 |
| 250,000 |
| 223,823 |
Texas Cty., OK Dev. Auth. (OPSU Student Hsg.) 5.250% 11/01/23 |
| 250,000 |
| 210,475 |
University of OK Board of Regents (Research Fac.) Rev. 4.800% 03/01/28 |
| 670,000 |
| 686,355 |
University of OK Board of Regents (Multi Facs.) Rev. 4.750% 06/01/29 |
| 250,000 |
| 255,283 |
OK Board of Regents (Univ. of OK) 4.125% 07/01/26 |
| 250,000 |
| 255,580 |
Board of Regents (OK Univ. Science Center) 5.000% 07/01/36 |
| 1,000,000 |
| 1,045,900 |
University of OK Board of Regents Student Hsg. Rev. 5.000% 11/01/27 |
| 1,000,000 |
| 1,017,280 |
University of OK Student Hsg. (Cameron Univ.) Rev. 5.500% 07/01/23 |
| 250,000 |
| 269,857 |
University of Puerto Rico 5.000% 06/01/17 |
| 650,000 |
| 677,911 |
|
|
|
| 11,989,129 |
General Obligation (2.4%) |
|
|
|
|
Oklahoma City, OK 4.250% 03/01/22 |
| 110,000 |
| 115,082 |
Tulsa, OK General Obligation 4.500% 03/01/23 |
| 700,000 |
| 738,899 |
|
|
|
| 853,981 |
Health Care (4.1%) |
|
|
|
|
Norman, OK (Regl. Hospital) Auth. 5.250% 09/01/16 |
| 180,000 |
| 182,059 |
OK Devl. Finance Auth. (St. John Health Syst.) Rev. Ref. - Unrefunded 5.750% 02/15/25 |
| 125,000 |
| 125,015 |
OK Devl. Finance Auth. (St. John Health Syst.) Rev. Ref. - Unrefunded 6.000% 02/15/29 |
| 100,000 |
| 100,004 |
OK Devl. Finance Auth. (St. John Health Syst.) 5.750% 02/15/25 |
| 50,000 |
| 50,012 |
OK Devl. Finance Auth. (St. Ann's Retirement Village) Rev. 5.000% 12/01/28 |
| 500,000 |
| 489,000 |
Rural Enterprises, OK Inc. OK Govt. Fin. (Cleveland Cty. Hlth.) 5.000% 11/01/21 |
| 250,000 |
| 260,172 |
Tulsa County Ind. Auth. Health Fac. 4.600% 02/01/35 |
| 250,000 |
| 251,530 |
|
|
|
| 1,457,792 |
Housing (5.1%) |
|
|
|
|
OK Housing Finance Agency Single Family Homeownership 5.250% 09/01/21 |
| 60,000 |
| 60,168 |
OK Housing Finance Agency Single Family Homeownership 5.850% 09/01/20 |
| 10,000 |
| 10,039 |
*Oklahoma Housing Finance 5.050% 09/01/23 |
| 775,000 |
| 780,254 |
Oklahoma Housing Finance 5.150% 09/01/29 |
| 390,000 |
| 388,678 |
Oklahoma Housing Finance 5.200% 09/01/32 |
| 390,000 |
| 385,983 |
Oklahoma Housing Fin. Agy. Single Family Mtg. Rev 5.100% 03/01/17 |
| 85,000 |
| 87,315 |
Oklahoma Housing Fin. Agy. Single Family Mtg. Rev. 5.100% 09/01/17 |
| 85,000 |
| 87,432 |
|
|
|
| 1,799,869 |
Other Revenue (17.8%) |
|
|
|
|
Collinsville OK Mun Auth Sales Tax Rev 5.000% 03/01/35 |
| 275,000 |
| 275,489 |
Collinsville OK Mun Auth Sales Tax Rev 5.000% 03/01/40 |
| 250,000 |
| 249,765 |
Durant, OK Community Fac. Auth. Sales Tax Rev. 5.500% 11/01/19 |
| 250,000 |
| 270,220 |
Garfield Cty., Criminal Justice Auth. (Enid, OK) Rev. 4.500% 04/01/18 |
| 250,000 |
| 252,613 |
Oklahoma City, OK Public Auth. (OKC Fairgrounds Fac.) 5.500% 10/01/19 |
| 250,000 |
| 280,830 |
OK Devl. Finance Auth. (DHS Lease Rev.) Series 2000A 5.600% 03/01/15 |
| 280,000 |
| 281,856 |
OK Devl. Finance Auth. (Lease Rev.) Law Enforcement 5.100% 06/01/27 |
| 120,000 |
| 123,071 |
OK Devl. Finance Auth. OK Dept. of Corrections (McLoud Fac.) 4.600% 04/01/22 |
| 250,000 |
| 258,400 |
OK Devl. Finance Auth. OK Dept. of Corrections (McLoud Fac.) 4.650% 04/01/23 |
| 250,000 |
| 257,445 |
OK Capital Impvt. Auth. (Supreme Court Proj.) 4.500% 07/01/26 |
| 500,000 |
| 517,015 |
OK Capital Impvt. Auth. (OK St. Bureau of Investigation) 4.375% 07/01/22 |
| 100,000 |
| 105,903 |
OK Capital Impvt. Auth. (OK St. Bureau of Investigation) 4.375% 07/01/23 |
| 100,000 |
| 105,019 |
OK Capital Impvt. Auth. (OK St. Bureau of Investigation) 4.500% 07/01/24 |
| 200,000 |
| 211,478 |
OK State Student Loan Auth. 6.350% 09/01/25 |
| 280,000 |
| 303,610 |
*OK State Student Loan Auth. 5.625% 06/01/31 |
| 685,000 |
| 686,151 |
OK State Student Loan Auth. 5.300% 12/01/32 |
| 425,000 |
| 398,369 |
Pawnee Cnty OK Pub Programs Auth Sales Tax Rev 4.875% 02/01/30 |
| 250,000 |
| 252,650 |
Rogers Cnty Okla Indl Dev Auth Cap Impt Rev 4.900% 04/01/35 |
| 500,000 |
| 497,600 |
Tulsa Cty, OK Indl. Auth. Recreation Facs. 4.700% 09/01/24 |
| 500,000 |
| 510,255 |
Tulsa Oklahoma Pub. Facs. Auth. 4.75% 11/15/37 |
| 500,000 |
| 482,695 |
|
|
|
| 6,320,434 |
Prerefunded (0.0%) |
|
|
|
|
OK Transportation Auth. Turnpike Sys. Rev. - Prerefunded 5.000% 01/01/21 |
| 10,000 |
| 10,664 |
|
|
|
|
|
Transportation (5.5%) |
|
|
|
|
Oklahoma City Airport Trust Jr. Lien Refunding Series B. 5.000% 07/01/19 |
| 250,000 |
| 276,520 |
Oklahoma City Airport Trust Jr. Lien Refunding Series B 5.000% 07/01/21 |
| 250,000 |
| 273,725 |
OK Capital Impvt. Auth. (State Highway) Rev. 5.000% 06/01/14 |
| 250,000 |
| 283,545 |
OK Transportation Auth. Turnpike Sys. Rev. - Unrefunded 5.000% 01/01/21 |
| 90,000 |
| 93,005 |
Tulsa, OK Arpts Impt Tr Gen Rev Ref 5.000% 06/01/19 |
| 125,000 |
| 130,960 |
Tulsa, OK Arpts Impt Tr Gen Rev Ref 5.000% 06/01/19 |
| 125,000 |
| 130,960 |
Tulsa, OK Arpts Impt Tr Gen Rev Ref 5.750% 06/01/31 |
| 500,000 |
| 500,785 |
Tulsa, OK Arpts Impt Tr Gen Rev Ref 6.000% 06/01/23 |
| 250,000 |
| 251,410 |
|
|
|
| 1,940,910 |
Utilities (27.5%) |
|
|
|
|
*Drumright, OK Utility Sys. Rev. 4.750% 02/01/36 |
| 950,000 |
| 947,900 |
Edmond, OK Pub Wks Auth Util Rev 4.850% 01/01/24 |
| 155,000 |
| 162,345 |
Edmond, OK Pub Wks Auth Util Rev 4.750% 07/01/24 |
| 250,000 |
| 262,730 |
Edmond, OK Pub Wks Auth Sales Tax & Util Sys Rev 4.750% 07/01/23 |
| 200,000 |
| 208,114 |
Jenks Aquarium Auth. Rev. 5.250% 07/01/29 |
| 500,000 |
| 520,015 |
McAlester, OK Public Works Auth. 5.100% 02/01/30 |
| 100,000 |
| 103,413 |
Midwest City, OK Capital Impvt. 5.375% 09/01/24 |
| 500,000 |
| 514,385 |
Oklahoma City, OK Water Utility Trust (Water & Sewer) Rev. 5.000% 07/01/29 |
| 425,000 |
| 443,024 |
Oklahoma City, OK Water Utility Rev. 5.000% 07/01/34 |
| 250,000 |
| 256,445 |
Oklahoma City, OK Water Utility Trust (Water & Sewer) Rev. 4.000% 07/01/34 |
| 250,000 |
| 241,483 |
*OK Municipal Power Auth. Rev. 5.750% 01/01/24 |
| 2,230,000 |
| 2,552,012 |
*OK Municipal Power Auth. Power Supply Rev. 4.500% 01/01/47 |
| 600,000 |
| 569,142 |
*OK State Water (Loan Program) Rev. 5.100% 09/01/16 |
| 40,000 |
| 40,020 |
Okmulgee Public Works Auth. Capital Improvement Rev. 5.125% 08/01/30 |
| 750,000 |
| 793,680 |
Okmulgee Public Works Auth. Capital Improvement Rev. 4.800% 10/01/27 |
| 500,000 |
| 530,775 |
Puerto Rico Electric Power Auth. Power Rev. 5.25% 07/01/26 |
| 500,000 |
| 526,370 |
Sallisaw, OK Mun Auth Util Sys Rev Ref 4.450% 01/01/28 |
| 100,000 |
| 99,374 |
Sapulpa Municipal Authority Utility Rev. 5.125% 01/01/32 |
| 250,000 |
| 254,222 |
Tulsa Metropolitan Util. Auth. Utility Revs 4.2500% 05/01/26 |
| 100,000 |
| 102,937 |
Tulsa Metropolitan Util. Auth. Utility Revs 4.5000% 05/01/27 |
| 610,000 |
| 629,788 |
|
|
|
| 9,758,174 |
|
|
|
|
|
TOTAL MUNICIPAL BONDS (COST: $33,669,376) |
|
| $ | 34,130,953 |
|
|
|
|
|
SHORT-TERM SECURITIES (2.9%) |
| Shares |
|
|
Wells Fargo Advantage National Tax-Free Money Market 0.160% (COST: $1,026,278) |
| 1,026,278 | $ | 1,026,278 |
|
|
|
|
|
TOTAL INVESTMENTS IN SECURITIES (COST: $34,695,654) (99.0%) |
|
| $ | 35,157,231 |
OTHER ASSETS LESS LIABILITIES (1.0%) |
|
|
| 348,416 |
|
|
|
|
|
NET ASSETS (100.0%) |
|
| $ | 35,505,647 |
|
|
|
|
|
* Indicates bonds are segregated by the custodian to cover when-issued or delayed-delivery purchases. There were no when-issued purchases for the Fund as of July 30, 2010. |
The accompanying notes are an integral part of these financial statements.
MAINE MUNICIPAL FUND
SCHEDULE OF INVESTMENTS July 30, 2010
|
| Principal |
| Fair |
|
|
|
|
|
MUNICIPAL BONDS (95.2%) |
|
|
|
|
|
|
|
|
|
Education (13.4%) |
|
|
|
|
Maine Educational Loan Auth. Student Loan Rev. 5.875% 12/01/39 | $ | 250,000 | $ | 275,327 |
Maine Educational Loan Auth. 4.450% 12/01/25 |
| 100,000 |
| 100,047 |
Maine Health & Higher Educ. Facs. Ser A-Bowdoin College 5.125% 07/01/39 |
| 465,000 |
| 490,714 |
Maine Health & Higher Edl. Facs. Auth. Rev. 5.000% 07/01/32 |
| 30,000 |
| 30,442 |
Maine Health & Higher Edl Facsauth Rev Unrefunded Bal 5.000% 07/01/23 |
| 135,000 |
| 146,110 |
University of Maine System Rev. 4.625% 03/01/29 |
| 100,000 |
| 100,493 |
University of Maine System Rev. 4.750% 03/01/37 |
| 550,000 |
| 558,184 |
University of Puerto Rico 5.000% 06/01/17 |
| 500,000 |
| 521,470 |
|
|
|
| 2,222,787 |
General Obligation (28.7%) |
|
|
|
|
Bangor, ME 4.000% 09/01/24 |
| 155,000 |
| 163,550 |
Brewer, ME GO 4.600% 11/01/17 |
| 210,000 |
| 218,910 |
Freeport, ME GO 7.250% 09/01/10 |
| 20,000 |
| 20,119 |
Gorham, ME Unlimited Tax G.O. 4.300% 02/01/23 |
| 155,000 |
| 165,391 |
Gorham, ME Unlimited Tax G.O. 4.350% 02/01/24 |
| 155,000 |
| 165,134 |
Gray, ME Unlimited GO 4.000% 10/15/26 |
| 280,000 |
| 294,062 |
Gray, ME Unlimited GO 4.000% 10/15/27 |
| 280,000 |
| 291,357 |
Lewiston, ME G.O. 5.000% 04/01/22 |
| 500,000 |
| 532,085 |
Lewiston, ME G.O. 5.000% 04/01/24 |
| 250,000 |
| 266,432 |
Lewiston, ME G.O. 4.500% 01/15/25 |
| 200,000 |
| 209,192 |
Maine State (Highway) 5.000% 06/15/11 |
| 200,000 |
| 208,154 |
Portland, ME 4.250% 05/01/29 |
| 250,000 |
| 259,047 |
City of Portland, ME 4.125% 10/01/29 |
| 100,000 |
| 101,766 |
Saco, ME G.O. 4.000% 04/01/28 |
| 100,000 |
| 100,339 |
Scarborough, ME G.O. 4.400% 11/01/31 |
| 250,000 |
| 253,250 |
Scarborough, ME G.O. 4.400% 11/01/32 |
| 480,000 |
| 484,848 |
Maine School Adminstrative Dist # 51 General Obligation 4.250% 10/15/29 |
| 250,000 |
| 258,137 |
Westbrook, ME G.O. 4.250% 10/15/20 |
| 180,000 |
| 190,649 |
*Yarmouth, ME 5.000% 11/15/19 |
| 500,000 |
| 537,080 |
|
|
|
| 4,719,502 |
Health Care (14.1%) |
|
|
|
|
Maine Health & Higher Educ. Facs. Auth. 6.000% 10/01/13 |
| 195,000 |
| 220,262 |
Maine Health & Higher Educ. Facs. Rev. 5.000% 07/01/22 |
| 250,000 |
| 272,240 |
Maine Health & Higher Educ. Auth. (Maine Maritime Academy) 5.000% 07/01/25 |
| 340,000 |
| 356,599 |
*Maine Health & Higher Ed. Facs. Auth. Rev 5.000% 07/01/39 |
| 510,000 |
| 516,232 |
Maine Health & Higher Ed Fac Auth Rev 5.000 % 07/01/20 |
| 250,000 |
| 285,138 |
Maine Health & Higher Ed Fac Auth Rev 5.000 % 07/01/40 |
| 250,000 |
| 252,148 |
Maine Health & Higher Educ. Facs. Rev. 4.500% 07/01/31 |
| 200,000 |
| 197,494 |
Maine Health & Higher Educ. Facs. Rev 5.250% 07/01/23 |
| 200,000 |
| 222,022 |
|
|
|
| 2,322,135 |
Housing (3.7%) |
|
|
|
|
Guam Hsg. Corp. Single Family Mtg. 5.750% 09/01/31 |
| 10,000 |
| 10,470 |
Maine State Hsg. Auth. 5.000% 11/15/29 |
| 350,000 |
| 357,207 |
Maine State Hsg. Auth. 4.700% 11/15/27 |
| 250,000 |
| 248,435 |
|
|
|
| 616,112 |
Other Revenue (7.8%) |
|
|
|
|
Maine Governmental Facs. Auth Lease Rent Rev. 5.000% 10/01/23 |
| 125,000 |
| 131,493 |
Maine Municipal Bond Bank (Sewer & Water) Rev. 4.900% 11/01/24 |
| 100,000 |
| 105,817 |
*Puerto Rico Public Finance Corp. Commonwealth Appropriations 5.375% 06/01/18 |
| 710,000 |
| 840,335 |
Puerto Rico Sales Tax Fin. Corp. Sales Tax Rev. 5.000% 08/01/26 |
| 200,000 |
| 203,630 |
|
|
|
| 1,281,275 |
Transportation (15.8%) |
|
|
|
|
*Maine Municipal Bond Bank Transportation Infrastructure Rev 5.000% 09/01/24 |
| 1,000,000 |
| 1,118,380 |
Maine State Turnpike Auth. 5.000% 07/01/33 |
| 450,000 |
| 458,960 |
Maine ST. Turnpike Auth. Rev. 5.125% 07/01/30 |
| 500,000 |
| 513,780 |
Portland, ME Airport Rev 5.000% 07/01/32 |
| 500,000 |
| 506,145 |
|
|
|
| 2,597,265 |
Utilities (11.7%) |
|
|
|
|
Kennebunk, ME Power & Light Dist. 5.000% 08/01/22 |
| 500,000 |
| 544,915 |
Portland, ME Water District Rev 4.250% 11/01/27 |
| 500,000 |
| 512,040 |
Puerto Rico Elec. Power Auth. Power Rev. 5.000% 07/01/23 |
| 100,000 |
| 102,309 |
Puerto Rico Electric Power Auth. Power Rev. 5.250% 07/01/26 |
| 250,000 |
| 263,185 |
Virgin Islands Water & Power Auth. Elec. Syst. Rev. 5.300% 07/01/21 |
| 500,000 |
| 500,725 |
|
|
|
| 1,923,174 |
|
|
|
|
|
TOTAL MUNICIPAL BONDS (COST: $15,106,786) |
|
| $ | 15,682,250 |
|
|
|
|
|
SHORT-TERM SECURITIES (2.8%) |
| Shares |
|
|
Wells Fargo Advantage National Tax-Free Money Market 0.160% (COST: $458,440) |
| 458,440 | $ | 458,440 |
|
|
|
|
|
TOTAL INVESTMENTS IN SECURITIES (COST: $15,565,226) (98.0%) |
|
| $ | 16,140,690 |
OTHER ASSETS LESS LIABILITIES (2.0%) |
|
|
| 326,051 |
|
|
|
|
|
NET ASSETS (100.0%) |
|
| $ | 16,466,741 |
|
|
|
|
|
* Indicates bonds are segregated by the custodian to cover when-issued or delayed-delivery purchases. There were no when-issued purchases for the Fund as of July 30, 2010. |
The accompanying notes are an integral part of these financial statements.
NEW HAMPSHIRE MUNICIPAL FUND
SCHEDULE OF INVESTMENTS July 30, 2010
|
| Principal |
| Fair |
|
|
|
|
|
MUNICIPAL BONDS (96.9%) |
|
|
|
|
|
|
|
|
|
Education (6.6%) |
|
|
|
|
New Hampshire Hlth. & Educ. Facs. Auth. (Univ. Sys. of NH) 5.500% 07/01/13 | $ | 95,000 | $ | 100,693 |
University of Puerto Rico 5.000% 06/01/17 |
| 150,000 |
| 156,441 |
|
|
|
| 257,134 |
General Obligation (47.0%) |
|
|
|
|
Concord, NH G.O. 4.600% 10/15/14 |
| 100,000 |
| 105,045 |
*Derry, NH 4.800% 02/01/18 |
| 115,000 |
| 118,720 |
Gorham, NH G.O. 4.850% 04/01/14 |
| 65,000 |
| 65,472 |
*Hampton, NH G.O. 4.000% 12/15/20 |
| 200,000 |
| 207,388 |
Hillsborough, NH G.O. 4.000% 11/01/20 |
| 100,000 |
| 105,655 |
Hillsborough, NH G.O. 4.000% 11/01/21 |
| 100,000 |
| 104,749 |
Merrimack Cty., NH G.O. 4.250% 12/01/19 |
| 100,000 |
| 111,279 |
Merrimack Cty., NH G.O. 4.500% 12/01/27 |
| 100,000 |
| 105,795 |
New Hampshire Muni Bond Bank 2009 Series D 4.000% 07/15/25 |
| 175,000 |
| 185,052 |
*New Hampshire State Capital Improvement G.O. 5.000% 04/15/13 |
| 150,000 |
| 166,449 |
New Hampshire State Capital Improvement G.O. 4.750% 03/01/27 |
| 100,000 |
| 107,926 |
Portsmouth, NH G.O. 4.000% 08/01/19 |
| 100,000 |
| 106,962 |
*Rochester, NH G.O. 4.750% 07/15/20 |
| 300,000 |
| 322,563 |
|
|
|
| 1,813,055 |
Health Care (16.4%) |
|
|
|
|
New Hampshire Hlth. & Educ. Facs. Auth. (Exeter) 5.200% 10/01/11 |
| 60,000 |
| 62,588 |
*New Hampshire Hlth. & Educ. Facs. Auth. (Exeter) 5.500% 10/01/15 |
| 120,000 |
| 125,126 |
New Hampshire Hlth. & Educ. Facs. Auth. (Exeter) 5.625% 10/01/16 |
| 20,000 |
| 20,883 |
New Hampshire Health & Ed. Conway Hosp. 5.250% 06/01/16 |
| 100,000 |
| 104,243 |
New Hampshire Health & Ed. Facs. Auth Rev. Healthcare Sys-Covenant Hlth-B 5.000% 07/01/24 |
| 100,000 |
| 103,496 |
NH Health & Educ. Facs Auth Rev Dartmouth-Hitchcock 6.000% 08/01/33 |
| 115,000 |
| 118,536 |
New Hampshire Health & Educ Concord Hosp. 5.875% 10/01/16 |
| 100,000 |
| 100,096 |
|
|
|
| 634,968 |
Housing (9.3%) |
|
|
|
|
Guam Hsg. Corp. Single Family Mtg. 5.750% 09/01/31 |
| 10,000 |
| 10,470 |
New Hampshire State Hsg. Single Fam. Rev. 4.90% 07/01/25 |
| 100,000 |
| 98,880 |
New Hampshire State Hsg. Finance Auth. Single Family Mtg. Rev. 5.350% 07/01/40 |
| 100,000 |
| 98,528 |
New Hampshire State Hsg Finance Auth. Single Family Mtg. Rev. 4.625% 07/01/25 |
| 150,000 |
| 149,801 |
|
|
|
| 357,679 |
Other Revenue (4.1%) |
|
|
|
|
Puerto Rico Sales Tax Financing First Sub-SER A 5.000% 08/01/24 |
| 150,000 |
| 157,538 |
|
|
|
|
|
Transportation (2.7%) |
|
|
|
|
Puerto Rico Highway Rev 4.950% 07/01/26 |
| 100,000 |
| 102,663 |
|
|
|
|
|
Utilities (10.8%) |
|
|
|
|
Manchester, NH Water Rev. 5.000% 12/01/28 |
| 100,000 |
| 103,478 |
*Manchester, NH Water Works Rev. 5.000% 12/01/34 |
| 250,000 |
| 257,198 |
Puerto Rico Elec. Power Auth. Power Rev. 5.000% 07/01/23 |
| 55,000 |
| 56,270 |
|
|
|
| 416,946 |
|
|
|
|
|
TOTAL MUNICIPAL BONDS (COST: $3,593,040) |
|
| $ | 3,739,983 |
|
|
|
|
|
SHORT-TERM SECURITIES (2.4%) |
| Shares |
|
|
Wells Fargo Advantage National Tax-Free Money Market 0.160% (Cost: $91,406) |
| 91,406 | $ | 91,406 |
|
|
|
|
|
TOTAL INVESTMENTS IN SECURITIES (COST: $3,684,446) (99.3%) |
|
| $ | 3,831,389 |
OTHER ASSETS MINUS LIABILITIES (0.7%) |
|
|
| 27,076 |
|
|
|
|
|
NET ASSETS (100.0%) |
|
| $ | 3,858,465 |
|
|
|
|
|
*Indicates bonds are segregated by the custodian to cover when-issued or delayed delivery purchases. There were no when-issued purchases for the Fund as of July 30, 2010. |
The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS
Statements of Assets and Liabilities July 30, 2010
| Kansas | Kansas | Nebraska | |||
ASSETS |
|
|
|
|
|
|
Investments in securities, at cost | $ | 45,720,292 | $ | 19,172,331 | $ | 32,728,416 |
|
|
|
|
|
|
|
Investments in securities, at fair value | $ | 47,170,236 | $ | 19,933,925 | $ | 33,468,785 |
Cash |
| 0 |
| 298,389 |
| 10,197 |
Accrued dividends receivable |
| 116 |
| 70 |
| 148 |
Accrued interest receivable |
| 683,078 |
| 294,877 |
| 378,043 |
Prepaid expenses |
| 1,010 |
| 1,215 |
| 1,984 |
Receivable due from broker |
| 0 |
| 104 |
| 0 |
Receivable for Fund shares sold |
| 30,105 |
| 0 |
| 0 |
Total assets | $ | 47,884,545 | $ | 20,528,580 | $ | 33,859,157 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Accrued expenses | $ | 24,633 | $ | 10,817 | $ | 17,168 |
Disbursements in excess of demand deposit cash |
| 49,451 |
| 0 |
| 0 |
Payable for Fund shares redeemed |
| 59,602 |
| 44,930 |
| 200 |
Payable to affiliates |
| 36,197 |
| 13,975 |
| 25,952 |
Securities purchases payable |
| 250,000 |
| 290,000 |
| 0 |
Total liabilities | $ | 419,883 | $ | 359,722 | $ | 43,320 |
|
|
|
|
|
|
|
NET ASSETS | $ | 47,464,662 | $ | 20,168,858 | $ | 33,815,837 |
|
|
|
|
|
|
|
NET ASSETS ARE REPRESENTED BY: |
|
|
|
|
|
|
Capital stock outstanding, no par value, unlimited shares authorized | $ | 52,691,879 | $ | 20,466,859 | $ | 35,485,873 |
Accumulated net realized gain (loss) on investments |
| (6,679,586) |
| (1,060,301) |
| (2,416,433) |
Accumulated undistributed net investment income (loss) |
| 2,425 |
| 706 |
| 6,028 |
Unrealized appreciation (depreciation) on investments |
| 1,449,944 |
| 761,594 |
| 740,369 |
|
|
|
|
|
|
|
NET ASSETS | $ | 47,464,662 | $ | 20,168,858 | $ | 33,815,837 |
|
|
|
|
|
|
|
Shares outstanding |
| 4,437,553 |
| 1,786,335 |
| 3,308,270 |
Net asset value per share | $ | 10.70 | $ | 11.29 | $ | 10.22 |
Public offering price (sales charge of 4.25%, 2.75%, and 4.25%, respectively) | $ | 11.17 | $ | 11.61 | $ | 10.67 |
The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS
Statements of Assets and Liabilities July 30, 2010
| Oklahoma | Maine | New | |||
ASSETS |
|
|
|
|
|
|
Investments in securities, at cost | $ | 34,695,654 | $ | 15,565,226 | $ | 3,684,446 |
|
|
|
|
|
|
|
Investments in securities, at fair value | $ | 35,157,231 | $ | 16,140,690 | $ | 3,831,389 |
Cash |
| 0 |
| 183,271 |
| 0 |
Accrued dividends receivable |
| 86 |
| 29 |
| 11 |
Accrued interest receivable |
| 407,779 |
| 160,326 |
| 37,758 |
Prepaid expenses |
| 800 |
| 1,597 |
| 945 |
Receivable for Fund shares sold |
| 55,000 |
| 3,343 |
| 0 |
Total assets | $ | 35,620,896 | $ | 16,489,256 | $ | 3,870,103 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Accrued expenses | $ | 18,016 | $ | 9,313 | $ | 3,407 |
Disbursements in excess of demand deposit cash |
| 50,818 |
| 0 |
| 4,843 |
Payable for Fund shares redeemed |
| 16,415 |
| 0 |
| 0 |
Payable to affiliates |
| 30,000 |
| 13,202 |
| 3,388 |
Total liabilities | $ | 115,249 | $ | 22,515 | $ | 11,638 |
|
|
|
|
|
|
|
NET ASSETS | $ | 35,505,647 | $ | 16,466,741 | $ | 3,858,465 |
|
|
|
|
|
|
|
NET ASSETS ARE REPRESENTED BY: |
|
|
|
|
|
|
Capital stock outstanding, no par value, unlimited shares authorized | $ | 37,409,525 | $ | 16,244,768 | $ | 3,840,299 |
Accumulated net realized gain (loss) on investments |
| (2,367,589) |
| (370,474) |
| (131,167) |
Accumulated undistributed net investment income (loss) |
| 2,134 |
| 16,983 |
| 2,390 |
Unrealized appreciation (depreciation) on investments |
| 461,577 |
| 575,464 |
| 146,943 |
|
|
|
|
|
|
|
NET ASSETS | $ | 35,505,647 | $ | 16,466,741 | $ | 3,858,465 |
|
|
|
|
|
|
|
Shares outstanding |
| 3,171,921 |
| 1,517,274 |
| 359,620 |
Net asset value per share | $ | 11.19 | $ | 10.85 | $ | 10.73 |
Public offering price (sales charge of 4.25%, 4.25%, and 4.25%, respectively) | $ | 11.69 | $ | 11.33 | $ | 11.21 |
The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS
Statements of Operations For the year ended July 30, 2010
| Kansas | Kansas | Nebraska | |||
INVESTMENT INCOME |
|
|
|
|
|
|
Interest | $ | 2,206,545 | $ | 752,741 | $ | 1,395,869 |
Dividends |
| 1,453 |
| 817 |
| 1,809 |
Total investment income | $ | 2,207,998 | $ | 753,558 | $ | 1,397,678 |
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
Investment advisory fees | $ | 237,335 | $ | 92,280 | $ | 155,686 |
Distribution (12b-1) fees |
| 118,668 |
| 0 |
| 77,844 |
Transfer agent fees |
| 94,934 |
| 36,912 |
| 62,275 |
Accounting service fees |
| 47,734 |
| 33,228 |
| 39,569 |
Administrative service fees |
| 59,334 |
| 24,164 |
| 38,922 |
Professional fees |
| 15,517 |
| 6,630 |
| 10,447 |
Reports to shareholders |
| 4,417 |
| 1,680 |
| 2,200 |
License, fees, and registrations |
| 1,861 |
| 4,011 |
| 4,084 |
Audit fees |
| 15,500 |
| 6,437 |
| 10,889 |
Trustees' fees |
| 5,968 |
| 2,951 |
| 4,382 |
Transfer agent out-of-pockets |
| 3,656 |
| 745 |
| 1,540 |
Custodian fees |
| 8,269 |
| 4,486 |
| 5,950 |
Legal fees |
| 13,480 |
| 5,686 |
| 9,028 |
Insurance expense |
| 3,829 |
| 1,331 |
| 2,331 |
Total expenses | $ | 630,502 | $ | 220,541 | $ | 425,147 |
Less expenses waived or reimbursed |
| (122,604) |
| (82,120) |
| (91,978) |
Total net expenses | $ | 507,898 | $ | 138,421 | $ | 333,169 |
|
|
|
|
|
|
|
NET INVESTMENT INCOME (LOSS) | $ | 1,700,100 | $ | 615,137 | $ | 1,064,509 |
|
|
|
|
|
|
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS |
|
|
|
|
|
|
Net realized gain (loss) from investment transactions | $ | 110,059 | $ | 3,888 | $ | 67,314 |
Net change in unrealized appreciation (depreciation) of investments |
| 998,940 |
| 320,294 |
| 577,824 |
Net realized and unrealized gain (loss) on investments | $ | 1,108,999 | $ | 324,182 | $ | 645,138 |
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,809,099 | $ | 939,319 | $ | 1,709,647 |
The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS
Statements of Operations For the year ended July 30, 2010
| Oklahoma | Maine | New | |||
INVESTMENT INCOME |
|
|
|
|
|
|
Interest | $ | 1,581,018 | $ | 692,802 | $ | 162,889 |
Dividends |
| 1,704 |
| 610 |
| 190 |
Total investment income | $ | 1,582,722 | $ | 693,412 | $ | 163,079 |
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
Investment advisory fees | $ | 169,159 | $ | 80,638 | $ | 19,487 |
Distribution (12b-1) fees |
| 84,580 |
| 40,319 |
| 9,743 |
Transfer agent fees |
| 67,664 |
| 32,255 |
| 15,907 |
Accounting service fees |
| 40,916 |
| 32,064 |
| 25,949 |
Administrative service fees |
| 42,290 |
| 22,222 |
| 14,417 |
Professional fees |
| 11,134 |
| 6,074 |
| 2,447 |
Reports to shareholders |
| 1,914 |
| 1,496 |
| 722 |
License, fees, and registrations |
| 3,120 |
| 2,197 |
| 1,380 |
Audit fees |
| 11,580 |
| 5,330 |
| 1,264 |
Trustees' fees |
| 4,695 |
| 2,674 |
| 1,298 |
Transfer agent out-of-pockets |
| 538 |
| 1,120 |
| 245 |
Custodian fees |
| 6,219 |
| 4,028 |
| 1,820 |
Legal fees |
| 9,145 |
| 4,634 |
| 1,114 |
Insurance expense |
| 3,011 |
| 1,192 |
| 317 |
Total expenses | $ | 455,965 | $ | 236,243 | $ | 96,110 |
Less expenses waived or reimbursed |
| (93,964) |
| (63,678) |
| (54,409) |
Total net expenses | $ | 362,001 | $ | 172,565 | $ | 41,701 |
|
|
|
|
|
|
|
NET INVESTMENT INCOME (LOSS) | $ | 1,220,721 | $ | 520,847 | $ | 121,378 |
|
|
|
|
|
|
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS |
|
|
|
|
|
|
Net realized gain (loss) from investment transactions | $ | 21,935 | $ | 92,757 | $ | 16,499 |
Net change in unrealized appreciation (depreciation) of investments |
| 1,243,220 |
| 240,960 |
| 67,026 |
Net realized and unrealized gain (loss) on investments | $ | 1,265,155 | $ | 333,717 | $ | 83,525 |
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,485,876 | $ | 854,564 | $ | 204,903 |
The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS
Statements of Changes in Net Assets For the year ended July 30, 2010
| Kansas | Kansas | Nebraska | |||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS |
|
|
|
|
|
|
Net investment income (loss) | $ | 1,700,100 | $ | 615,137 | $ | 1,064,509 |
Net realized gain (loss) from investment transactions |
| 110,059 |
| 3,888 |
| 67,314 |
Net change in unrealized appreciation (depreciation) on investments |
| 998,940 |
| 320,294 |
| 577,824 |
Net increase (decrease) in net assets resulting from operations | $ | 2,809,099 | $ | 939,319 | $ | 1,709,647 |
|
|
|
|
|
|
|
DISTRIBUTIONS TO SHAREHOLDERS FROM |
|
|
|
|
|
|
Net investment income | $ | (1,699,205) | $ | (614,747) | $ | (1,062,328) |
Net realized gain on investments |
| 0 |
| 0 |
| 0 |
Total distributions | $ | (1,699,205) | $ | (614,747) | $ | (1,062,328) |
|
|
|
|
|
|
|
CAPITAL SHARE TRANSACTIONS |
|
|
|
|
|
|
Proceeds from sale of shares | $ | 2,179,635 | $ | 5,754,448 | $ | 6,085,612 |
Proceeds from reinvested dividends |
| 1,196,495 |
| 512,539 |
| 800,241 |
Cost of shares redeemed |
| (4,386,168) |
| (2,602,240) |
| (2,630,457) |
Net increase (decrease) in net assets resulting from capital share transactions | $ | (1,010,038) | $ | 3,664,747 | $ | 4,255,396 |
|
|
|
|
|
|
|
TOTAL INCREASE (DECREASE) IN NET ASSETS | $ | 99,856 | $ | 3,989,319 | $ | 4,902,715 |
NET ASSETS, BEGINNING OF PERIOD | $ | 47,364,806 | $ | 16,179,539 | $ | 28,913,122 |
NET ASSETS, END OF PERIOD | $ | 47,464,662 | $ | 20,168,858 | $ | 33,815,837 |
|
|
|
|
|
|
|
Accumulated undistributed net investment income | $ | 2,425 | $ | 706 | $ | 6,028 |
The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS
Statements of Changes in Net Assets For the year ended July 30, 2010
| Oklahoma | Maine | New | |||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS |
|
|
|
|
|
|
Net investment income (loss) | $ | 1,220,721 | $ | 520,847 | $ | 121,378 |
Net realized gain (loss) from investment transactions |
| 21,935 |
| 92,757 |
| 16,499 |
Net change in unrealized appreciation (depreciation) on investments |
| 1,243,220 |
| 240,960 |
| 67,026 |
Net increase (decrease) in net assets resulting from operations | $ | 2,485,876 | $ | 854,564 | $ | 204,903 |
|
|
|
|
|
|
|
DISTRIBUTIONS TO SHAREHOLDERS FROM |
|
|
|
|
|
|
Net investment income | $ | (1,220,212) | $ | (517,419) | $ | (119,828) |
Net realized gain on investments |
| 0 |
| 0 |
| 0 |
Total distributions | $ | (1,220,212) | $ | (517,419) | $ | (119,828) |
|
|
|
|
|
|
|
CAPITAL SHARE TRANSACTIONS |
|
|
|
|
|
|
Proceeds from sale of shares | $ | 7,052,634 | $ | 1,952,969 | $ | 396,099 |
Proceeds from reinvested dividends |
| 746,580 |
| 345,699 |
| 62,935 |
Cost of shares redeemed |
| (5,578,407) |
| (1,581,923) |
| (501,887) |
Net increase (decrease) in net assets resulting from capital share transactions | $ | 2,220,807 | $ | 716,745 | $ | (42,853) |
|
|
|
|
|
|
|
TOTAL INCREASE (DECREASE) IN NET ASSETS | $ | 3,486,471 | $ | 1,053,890 | $ | 42,222 |
NET ASSETS, BEGINNING OF PERIOD | $ | 32,019,176 | $ | 15,412,851 | $ | 3,816,243 |
NET ASSETS, END OF PERIOD | $ | 35,505,647 | $ | 16,466,741 | $ | 3,858,465 |
|
|
|
|
|
|
|
Accumulated undistributed net investment income | $ | 2,134 | $ | 16,983 | $ | 2,390 |
The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS
Statements of Changes in Net Assets For the year ended July 31, 2009
| Kansas | Kansas | Nebraska | |||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS |
|
|
|
|
|
|
Net investment income (loss) | $ | 1,815,715 | $ | 514,982 | $ | 1,052,749 |
Net realized gain (loss) from investment transactions |
| 172,956 |
| 14,823 |
| 17,216 |
Net change in unrealized appreciation (depreciation) on investments |
| (197,097) |
| 200,646 |
| (79,241) |
Net increase (decrease) in net assets resulting from operations | $ | 1,791,574 | $ | 730,451 | $ | 990,724 |
|
|
|
|
|
|
|
DISTRIBUTIONS TO SHAREHOLDERS FROM |
|
|
|
|
|
|
Net investment income | $ | (1,814,848) | $ | (514,404) | $ | (1,048,177) |
Net realized gain on investments |
| 0 |
| 0 |
| 0 |
Total distributions | $ | (1,814,848) | $ | (514,404) | $ | (1,048,177) |
|
|
|
|
|
|
|
CAPITAL SHARE TRANSACTIONS |
|
|
|
|
|
|
Proceeds from sale of shares | $ | 2,473,521 | $ | 6,917,416 | $ | 3,005,898 |
Proceeds from reinvested dividends |
| 1,206,706 |
| 381,344 |
| 728,780 |
Cost of shares redeemed |
| (4,878,949) |
| (3,695,403) |
| (1,993,266) |
Net increase (decrease) in net assets resulting from capital share transactions | $ | (1,198,722) | $ | 3,603,357 | $ | 1,741,412 |
|
|
|
|
|
|
|
TOTAL INCREASE (DECREASE) IN NET ASSETS | $ | (1,221,996) | $ | 3,819,404 | $ | 1,683,959 |
NET ASSETS, BEGINNING OF PERIOD | $ | 48,586,802 | $ | 12,360,135 | $ | 27,229,163 |
NET ASSETS, END OF PERIOD | $ | 47,364,806 | $ | 16,179,539 | $ | 28,913,122 |
|
|
|
|
|
|
|
Accumulated undistributed net investment income | $ | 2,312 | $ | 782 | $ | 35,172 |
The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS
Statements of Changes in Net Assets For the year ended July 31, 2009
| Oklahoma | Maine | New | |||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS |
|
|
|
|
|
|
Net investment income (loss) | $ | 1,446,145 | $ | 504,793 | $ | 106,083 |
Net realized gain (loss) from investment transactions |
| (254,833) |
| 199,698 |
| 0 |
Net change in unrealized appreciation (depreciation) on investments |
| 19,774 |
| 41,579 |
| 63,745 |
Net increase (decrease) in net assets resulting from operations | $ | 1,211,086 | $ | 746,070 | $ | 169,828 |
|
|
|
|
|
|
|
DISTRIBUTIONS TO SHAREHOLDERS FROM |
|
|
|
|
|
|
Net investment income | $ | (1,444,737) | $ | (499,720) | $ | (104,834) |
Net realized gain on investments |
| 0 |
| 0 |
| 0 |
Total distributions | $ | (1,444,737) | $ | (499,720) | $ | (104,834) |
|
|
|
|
|
|
|
CAPITAL SHARE TRANSACTIONS |
|
|
|
|
|
|
Proceeds from sale of shares | $ | 2,178,842 | $ | 1,234,481 | $ | 283,154 |
Proceeds from reinvested dividends |
| 920,824 |
| 302,836 |
| 51,823 |
Cost of shares redeemed |
| (12,872,462) |
| (2,250,581) |
| (264,627) |
Net increase (decrease) in net assets resulting from capital share transactions | $ | (9,772,796) | $ | (713,264) | $ | 70,350 |
|
|
|
|
|
|
|
TOTAL INCREASE (DECREASE) IN NET ASSETS | $ | (10,006,447) | $ | (466,914) | $ | 135,344 |
NET ASSETS, BEGINNING OF PERIOD | $ | 42,025,623 | $ | 15,879,765 | $ | 3,680,899 |
NET ASSETS, END OF PERIOD | $ | 32,019,176 | $ | 15,412,851 | $ | 3,816,243 |
|
|
|
|
|
|
|
Accumulated undistributed net investment income | $ | 1,984 | $ | 15,028 | $ | 1,237 |
The accompanying notes are an integral part of these financial statements.
NOTES TO FINANCIAL STATEMENTS
NOTE 1: Organization
Integrity Managed Portfolios (the "Trust") is registered under the Investment Company Act of 1940 as an open-end management investment company and consists of six series (the "Funds").
The Kansas Municipal Fund ("KS Muni Fund"), Kansas Insured Intermediate Fund ("KS Insured Fund"), Nebraska Municipal Fund ("NE Muni Fund"), Oklahoma Municipal Fund ("OK Muni Fund"), Maine Municipal Fund ("ME Muni Fund"), and New Hampshire Municipal Fund ("NH Muni Fund"), each a non-diversified Fund, seek the highest level of current income that is exempt from both federal income tax and each Fund's respective state income tax (interest and dividend tax with respect to New Hampshire) and is consistent with preservation of capital.
NOTE 2: Summary of Significant Accounting Policies
Investment security valuation—Securities for which quotations are not readily available are valued using a matrix system at fair value as determined by Integrity Fund Services, LLC ("Integrity Fund Services" or "IFS"). The matrix system has been developed based on procedures approved by the Board of Trustees and includes consideration of the following: yields or prices of municipal bonds of comparable quality; type of issue, coupon, maturity, and rating; indications as to value from dealers; indications as to value from municipal bond market activity; and general market conditions. Because the market value of securities can only be established by agreement between parties in a sales transaction, and because of the uncertainty inherent in the valuation process, the fair values as determined may differ from the values that would have been used had a ready market for the securities existed. Refer to Note 3 for further disclosures related to the inputs used to value the Funds' investments as of July 30, 2010.
When-issued securities—The Funds may purchase securities on a when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The values of the securities purchased on a when-issued basis are identified as such in the Fund's Schedule of Investments. With respect to purchase commitments, the Fund identifies securities as segregated in its custodial records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities, if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Contingent deferred sales charge—In the case of investments of $1 million or more (excluding KS Insured Fund), a 1.00% contingent deferred sales charge ("CDSC") may be assessed on shares redeemed within 24 months of purchase (excluding shares purchased with reinvested dividends and/or distributions).
Federal and state income taxes—Each Fund is a separate taxpayer for federal income tax purposes. Each Fund's policy is to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of its net investment income and any net realized gain on investments to its shareholders; therefore, no provision for income taxes is required.
As of and during the year ended July 30, 2010, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the year, the Funds did not incur any interest or penalties. The Funds are not subject to examination by U.S. federal tax authorities for the tax years before 2006.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities. Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Premiums and discounts—Premiums and discounts on municipal securities are accreted and amortized over the lives of the respective securities.
Security Transactions, Investment Income, Expenses and Distributions—Income and expenses are recorded on the accrual basis. Investment transactions are accounted for on the trade date. Realized gains and losses are reported on the first in, first out basis unless specifically identified. Interest income and estimated expenses are accrued daily. The Funds declare dividends from net investment income daily and pay such dividends monthly. Capital gains, when available, are distributed at least annually. Dividends are reinvested in additional shares of the Funds at net asset value or paid in cash. Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with federal income tax regulations and may differ from net investment income and realized gains determined in accordance with accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatment for market discount and capital loss carryforwards.
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 revenues and expenses during the reporting period. Actual results could differ from those estimates.
Common Expenses—Common expenses of the Trust are allocated among the Funds within the Trust based on relative net assets of each Fund or the nature of the services performed and the relative applicability to each Fund.
Reporting period end date—For financial reporting purposes, the last day of the reporting period will be the last business day of the month.
NOTE 3: Fair Value Measurements
Various inputs are used in determining the value of the Funds' investments. These inputs are summarized in three broad levels: Level 1 inputs are based on quoted prices in active markets for identical securities. Level 2 inputs are based on significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) Level 3 inputs are based on significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments.) The following is a summary of the inputs used to value the Funds' investments as of July 30, 2010:
|
| Level 1 | Level 2 | Level 3 | Total | ||||
KS Muni Fund | Short-Term Securities | $ | 1,114,434 | $ | 0 | $ | 0 | $ | 1,114,434 |
| Municipal Bonds* |
| 0 |
| 46,055,802 |
| 0 |
| 46,055,802 |
| Total | $ | 1,114,434 | $ | 46,055,802 | $ | 0 | $ | 47,170,236 |
|
|
|
|
|
|
|
|
|
|
KS Insured Fund | Short-Term Securities | $ | 696,536 | $ | 0 | $ | 0 | $ | 696,536 |
| Municipal Bonds* |
| 0 |
| 19,237,389 |
| 0 |
| 19,237,389 |
| Total | $ | 696,536 | $ | 19,237,389 | $ | 0 | $ | 19,933,925 |
|
|
|
|
|
|
|
|
|
|
NE Muni Fund | Short-Term Securities | $ | 1,285,539 | $ | 0 | $ | 0 | $ | 1,285,539 |
| Municipal Bonds* |
| 0 |
| 32,183,246 |
| 0 |
| 32,183,246 |
| Total | $ | 1,285,539 | $ | 32,183,246 | $ | 0 | $ | 33,468,785 |
|
|
|
|
|
|
|
|
|
|
OK Muni Fund | Short-Term Securities | $ | 1,026,278 | $ | 0 | $ | 0 | $ | 1,026,278 |
| Municipal Bonds* |
| 0 |
| 34,130,953 |
| 0 |
| 34,130,953 |
| Total | $ | 1,026,278 | $ | 34,130,953 | $ | 0 | $ | 35,157,231 |
|
|
|
|
|
|
|
|
|
|
ME Muni Fund | Short-Term Securities | $ | 458,440 | $ | 0 | $ | 0 | $ | 458,440 |
| Municipal Bonds* |
| 0 |
| 15,682,250 |
| 0 |
| 15,682,250 |
| Total | $ | 458,440 | $ | 15,682,250 | $ | 0 | $ | 16,140,690 |
|
|
|
|
|
|
|
|
|
|
NH Muni Fund | Short-Term Securities | $ | 91,406 | $ | 0 | $ | 0 | $ | 91,406 |
| Municipal Bonds* |
| 0 |
| 3,739,983 |
| 0 |
| 3,739,983 |
| Total | $ | 91,406 | $ | 3,739,983 | $ | 0 | $ | 3,831,389 |
|
|
|
|
|
|
|
|
|
|
|
* See schedule of investments to view Municipal Bonds segregated by type of obligation.
NOTE 4: Investment Transactions
Purchases and sales of investment securities (excluding short-term securities) for the year ended July 30, 2010, were as follows:
| KS Muni | KS Insured | NE Muni | OK Muni | ME Muni | NH Muni |
Purchases | $7,115,946 | $7,302,956 | $10,599,372 | $4,808,311 | $6,762,978 | $824,494 |
Sales | $7,855,000 | $3,978,806 | $5,634,126 | $3,029,426 | $5,946,914 | $787,323 |
NOTE 5: Capital Share Transactions
Transactions in capital shares were as follows:
Year Ended 7/30/10: | KS Muni | KS Insured | NE Muni | OK Muni | ME Muni | NH Muni |
Shares sold | 204,761 | 515,113 | 599,878 | 640,454 | 181,276 | 37,412 |
Reinvestment of dividends | 112,613 | 45,879 | 78,905 | 67,697 | 32,144 | 5,922 |
Shares redeemed | (412,335) | (233,306) | (258,912) | (507,437) | (146,822) | (47,304) |
Net increase (decrease) | (94,961) | 327,686 | 419,871 | 200,714 | 66,598 | (3,970) |
Shares outstanding | 4,437,553 | 1,786,335 | 3,308,270 | 3,171,921 | 1,517,274 | 359,620 |
|
|
|
|
|
|
|
| KS Muni | KS Insured | NE Muni | OK Muni | ME Muni | NH Muni |
Year Ended 7/31/09: | Fund | Fund | Fund | Fund | Fund | Fund |
Shares sold | 241,562 | 631,527 | 303,135 | 208,121 | 117,082 | 27,565 |
Reinvestment of dividends | 118,228 | 34,927 | 74,481 | 88,660 | 29,104 | 5,048 |
Shares redeemed | (480,924) | (337,735) | (205,193) | (1,235,502) | (217,108) | (25,530) |
Net increase (decrease) | (121,134) | 328,719 | 172,423 | (938,721) | (70,922) | 7,083 |
Shares outstanding | 4,532,514 | 1,458,649 | 2,888,399 | 2,971,207 | 1,450,676 | 363,590 |
NOTE 6: Income Tax Information
At July 30, 2010, the net unrealized appreciation (depreciation) based on the cost of investments for federal income tax purposes was as follows:
| Cost | Appreciation | Depreciation | Net* | ||||
KS Muni Fund | $ | 45,717,867 | $ | 1,480,061 | $ | (27,692) | $ | 1,452,369 |
KS Insured Fund | $ | 19,171,625 | $ | 767,315 | $ | (5,015) | $ | 762,300 |
NE Muni Fund | $ | 32,722,388 | $ | 867,740 | $ | (121,343) | $ | 746,397 |
OK Muni Fund | $ | 34,693,520 | $ | 874,385 | $ | (410,674) | $ | 463,711 |
ME Muni Fund | $ | 15,548,243 | $ | 612,334 | $ | (19,887) | $ | 592,447 |
NH Muni Fund | $ | 3,682,056 | $ | 151,002 | $ | (1,669) | $ | 149,333 |
*Differences between financial reporting-basis and tax-basis are due to differing treatment of market discount.
Tax-exempt income distributions paid or accrued were as follows:
| KS Muni | KS Insured | NE Muni | OK Muni | ME Muni | NH Muni | ||||||
Year Ended 7/30/10 | $ | 1,699,205 | $ | 614,747 | $ | 1,062,328 | $ | 1,220,212 | $ | 517,419 | $ | 119,828 |
Year Ended 7/31/09 | $ | 1,814,848 | $ | 514,404 | $ | 1,048,177 | $ | 1,444,737 | $ | 499,720 | $ | 104,834 |
As of July 30, 2010, the components of accumulated earnings/(deficit) on a tax basis were as follows:
| Accumulated Capital | Unrealized Appreciation | Total Accumulated | |||
KS Muni Fund | $ | (6,679,586) | $ | 1,452,369 | $ | (5,227,217) |
KS Insured Fund | $ | (1,057,361) | $ | 762,300 | $ | (295,061) |
NE Muni Fund | $ | (2,416,433) | $ | 746,397 | $ | (1,670,036) |
OK Muni Fund | $ | (2,367,589) | $ | 463,711 | $ | (1,903,878) |
ME Muni Fund | $ | (370,474) | $ | 592,447 | $ | 221,973 |
NH Muni Fund | $ | (131,167) | $ | 149,333 | $ | 18,166 |
*Differences between financial reporting-basis and tax-basis are due to differing treatment of market discount and capital loss deferral due to post-October losses.
Capital loss carryforwards may be used to offset future capital gains. The capital loss carryforwards amounts will expire in each of the years ended July 31 as shown in the following table.
Year |
| KS Muni |
| KS Insured |
| NE Muni |
| OK Muni |
| ME Muni |
| NH Muni |
2011 |
| 1,970,032 |
| 209,757 |
| 713,949 |
| 412,304 |
| - |
| - |
2012 |
| 1,399,598 |
| 303,542 |
| 579,276 |
| 547,833 |
| - |
| - |
2013 |
| 2,680,173 |
| 544,062 |
| 1,123,208 |
| 1,147,143 |
| 370,474 |
| 130,639 |
2014 |
| 388,935 |
| - |
| - |
| - |
| - |
| - |
2015 |
| 240,848 |
| - |
| - |
| - |
| - |
| - |
2016 |
| - |
| - |
| - |
| - |
| - |
| 528 |
2018 |
| - |
| - |
| - |
| 260,309 |
| - |
| - |
Total | $ | 6,679,586 | $ | 1,057,361 | $ | 2,416,433 | $ | 2,367,589 | $ | 370,474 | $ | 131,167 |
| For the year ended July 30, 2010, | For the year ended July 30, 2010, | ||
KS Muni Fund | $ | 1,334,018 | $ | - |
KS Insured Fund | $ | 177,136 | $ | 2,940 |
NE Muni Fund | $ | 493,354 | $ | - |
OK Muni Fund | $ | 138,150 | $ | - |
*Reclassifications to paid-in capital relate primarily to expiring capital loss carryforwards.
NOTE 7: Investment Advisory Fees and Other Transactions with Affiliates
Viking Fund Management, the Funds' investment adviser; Integrity Funds Distributor, LLC ("Integrity Funds Distributor" or "IFD"), the Funds' underwriter; and IFS, the Funds' transfer, accounting, and administrative services agent; are subsidiaries of Corridor Investors, LLC ("Corridor Investors" or "Corridor"), the Funds' sponsor.
VFM provides investment advisory and management services to the Funds. The Investment Advisory Agreement (the "Advisory Agreement") provides for fees to be computed at an annual rate of the Funds' average daily net assets. Under the terms of the Advisory Agreement, VFM agreed to pay all the expenses of the Funds (excluding extraordinary or non-recurring expenses and acquired fund fees and expenses, if any) that exceed 1.15% (0.75% for KS Insured Fund) of the Funds' average daily net assets on an annual basis up to the amount of the investment advisory and management fee. VFM and affiliated service providers may also voluntarily waive fees or reimburse expenses not required under the advisory or other contracts from time to time. Accordingly, after voluntary fee waivers and reimbursements, the Funds' actual total expenses were 1.07% (0.75% for KS Insured Fund) of average daily net assets for the year ended July 30, 2010. Certain Officers of the Funds are also Officers and Governors of VFM.
| Annual Advisory | Advisory Fees | Advisory Fees | ||
KS Muni Fund | 0.50% | $ | 221,964 | $ | 19,643 |
KS Insured Fund | 0.50% | $ | 78,298 | $ | 8,197 |
NE Muni Fund | 0.50% | $ | 143,407 | $ | 13,928 |
OK Muni Fund | 0.50% | $ | 156,466 | $ | 14,634 |
ME Muni Fund | 0.50% | $ | 69,939 | $ | 6,763 |
NH Muni Fund | 0.50% | $ | 12,704 | $ | 1,600 |
* After waivers and reimbursements, if any. |
|
|
|
|
IFD serves as the principal underwriter for the Funds and receives sales charges deducted from sale proceeds and CDSC from applicable redemptions. Also, the Funds (excluding KS Insured Fund) have adopted a distribution plan for each class of shares as allowed by Rule 12b-1 of the 1940 Act. Distribution plans permit the Funds to reimburse their principal underwriter for costs related to selling shares of the Funds and for various other services. These costs, which consist primarily of commissions and service fees to broker-dealers who sell shares of the Funds, are paid by shareholders through expenses called "Distribution Plan expenses." The Funds (excluding KS Insured Fund) currently pay an annual distribution fee of up to 0.25% of the average daily net assets. Certain Officers of the Funds are also Officers and Governors of IFD.
| Year Ended 7/30/10 |
| Payable 7/30/10 | ||||||||||
| Sales |
| Distribution |
| Sales |
| Distribution | ||||||
| Charges | CDSC | Fees |
| Charges | CDSC | Fees | ||||||
KS Muni Fund | $ | 14,164 | $ | 0 | $ | 118,668 |
| $ | 153 | $ | 0 | $ | 9,821 |
KS Insured Fund | $ | 7,145 | $ | 0 | $ | 0 |
| $ | 479 | $ | 0 | $ | 0 |
NE Muni Fund | $ | 30,829 | $ | 0 | $ | 77,844 |
| $ | 976 | $ | 0 | $ | 6,964 |
OK Muni Fund | $ | 18,680 | $ | 0 | $ | 84,580 |
| $ | 1,239 | $ | 0 | $ | 7,317 |
ME Muni Fund | $ | 7,635 | $ | 0 | $ | 40,319 |
| $ | 142 | $ | 0 | $ | 3,382 |
NH Muni Fund | $ | 3,055 | $ | 0 | $ | 9,743 |
| $ | 0 | $ | 0 | $ | 800 |
IFS acts as the Fund's transfer agent for a variable fee equal to 0.20% of the Funds' average daily net assets on an annual basis for the Funds' first $50 million and at a lower rate on the average daily net assets in excess of $50 million plus reimbursement of out-of-pocket expenses. IFS also acts as the Funds' accounting services agent for a monthly fee equal to the sum of a fixed fee of $2,000 and a variable fee equal to 0.05% of the Funds' average daily net assets on an annual basis for the Funds' first $50 million and at a lower rate on the average daily net assets in excess of $50 million, together with reimbursement of out-of-pocket expenses. IFS also acts as the Funds' administrative services agent for a variable fee equal to 0.125% of the Funds' average daily net assets on an annual basis for the Funds' first $50 million and at a lower rate on the average daily net assets in excess of $50 million plus reimbursement of out-of-pocket expenses. Certain Officers of the Funds are also Officers and Governors of IFS.
| Year Ended 7/30/10 |
| Payable 7/30/10 | ||||||||||
| Transfer | Accounting | Admin. |
| Transfer | Accounting | Admin. | ||||||
KS Muni Fund | $ | 44,544 | $ | 22,386 | $ | 27,840 |
| $ | 2,686 | $ | 1,355 | $ | 1,678 |
KS Insured Fund | $ | 10,040 | $ | 9,304 | $ | 6,822 |
| $ | 554 | $ | 477 | $ | 346 |
NE Muni Fund | $ | 26,958 | $ | 17,260 | $ | 16,849 |
| $ | 1,732 | $ | 1,054 | $ | 1,082 |
OK Muni Fund | $ | 31,172 | $ | 18,945 | $ | 19,482 |
| $ | 2,175 | $ | 1,287 | $ | 1,359 |
ME Muni Fund | $ | 12,412 | $ | 12,404 | $ | 8,746 |
| $ | 954 | $ | 944 | $ | 596 |
NH Muni Fund | $ | 5,287 | $ | 7,863 | $ | 4,922 |
| $ | 191 | $ | 645 | $ | 119 |
* After waivers and reimbursements, if any. |
|
|
|
|
|
|
|
|
|
NOTE 8: Principal Risks
Each of the Funds invests primarily in municipal securities from a specific state. Each Fund is therefore more susceptible to political, economic, legislative, or regulatory factors adversely affecting issuers of municipal securities in its respective state. Interest rate risk is the risk that bond prices will decline in value because of changes in interest rates. There is normally an inverse relationship between the fair value of securities sensitive to prevailing interest rates and actual changes in interest rates. The longer the average maturity of a Fund's portfolio, the greater its interest rate risk.
NOTE 9: New Accounting Standards
During January 2010, the Financial Accounting Standards Board issued amendments to professional standards that require new disclosures and clarify existing disclosure requirements about fair value measurements. The new disclosures require separate information about purchases, sales, issuances, and settlements for Level 3 fair value measurements. The amendments are effective for interim and annual reporting periods beginning after December 15, 2010. Management is currently evaluating the implications of this guidance and the impact it will have on the financial statement amounts and disclosures, if any.
KANSAS MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
| Year | Year | Year | Year | Year | |||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.45 | $ | 10.44 | $ | 10.54 | $ | 10.62 | $ | 10.57 |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) | $ | 0.38 | $ | 0.40 | $ | 0.40 | $ | 0.40 | $ | 0.41 |
Net realized and unrealized gain (loss) on investments |
| 0.25 |
| 0.01 |
| (0.10) |
| (0.08) |
| 0.05 |
Total from investment operations | $ | 0.63 | $ | 0.41 | $ | 0.30 | $ | 0.32 | $ | 0.46 |
|
|
|
|
|
|
|
|
|
|
|
Distributions from net investment income | $ | (0.38) | $ | (0.40) | $ | (0.40) | $ | (0.40) | $ | (0.41) |
|
|
|
|
|
|
|
|
|
|
|
NET ASSET VALUE, END OF PERIOD | $ | 10.70 | $ | 10.45 | $ | 10.44 | $ | 10.54 | $ | 10.62 |
|
|
|
|
|
|
|
|
|
|
|
Total Return1 | 6.12% | 4.06% | 2.90% | 3.06% | 4.39% | |||||
|
|
|
|
|
| |||||
RATIOS/SUPPLEMENTAL DATA |
|
|
|
|
| |||||
Net assets, end of period (in thousands) | $47,465 | $47,365 | $48,587 | $52,996 | $59,093 | |||||
Ratio of expenses to average net assets after waivers2* | 1.07%3 | 1.07% | 1.07% | 1.07% | 1.03% | |||||
Ratio of expenses to average net assets before waivers* | 1.33% | 1.35% | 1.36% | 1.26% | 1.15% | |||||
Ratio of net investment income to average net assets2* | 3.58%3 | 3.88% | 3.81% | 3.77% | 3.82% | |||||
Portfolio turnover rate | 15.34% | 16.73% | 6.52% | 4.77% | 12.31% |
1 | Excludes any applicable sales charge. |
|
|
2 | This row reflects the impact, if any, of fee waivers and reimbursements by the Adviser and/or affiliated service providers. |
|
|
3 | The Adviser and/or affiliated service providers voluntarily waived a portion of their fees equal to 0.08% of average net assets. |
|
|
* | Average net assets was calculated using a 360-day period. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
KANSAS INSURED INTERMEDIATE FUND
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
| Year | Year | Year | Year | Year | |||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 11.09 | $ | 10.94 | $ | 10.87 | $ | 10.95 | $ | 10.94 |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) | $ | 0.37 | $ | 0.41 | $ | 0.42 | $ | 0.44 | $ | 0.43 |
Net realized and unrealized gain (loss) on investments |
| 0.20 |
| 0.15 |
| 0.07 |
| (0.08) |
| 0.01 |
Total from investment operations | $ | 0.57 | $ | 0.56 | $ | 0.49 | $ | 0.36 | $ | 0.44 |
|
|
|
|
|
|
|
|
|
|
|
Distributions from net investment income | $ | (0.37) | $ | (0.41) | $ | (0.42) | $ | (0.44) | $ | (0.43) |
|
|
|
|
|
|
|
|
|
|
|
NET ASSET VALUE, END OF PERIOD | $ | 11.29 | $ | 11.09 | $ | 10.94 | $ | 10.87 | $ | 10.95 |
|
|
|
|
|
|
|
|
|
|
|
Total Return1 | 5.26% | 5.22% | 4.62% | 3.34% | 4.06% | |||||
|
|
|
|
|
| |||||
RATIOS/SUPPLEMENTAL DATA |
|
|
|
|
| |||||
Net assets, end of period (in thousands) | $20,169 | $16,180 | $12,360 | $10,686 | $12,419 | |||||
Ratio of expenses to average net assets after waivers2* | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | |||||
Ratio of expenses to average net assets before waivers* | 1.20% | 1.35% | 1.48% | 1.40% | 1.23% | |||||
Ratio of net investment income to average net assets2* | 3.33% | 3.70% | 3.86% | 4.02% | 3.89% | |||||
Portfolio turnover rate | 22.46% | 14.00% | 21.80% | 9.18% | 4.15% |
1 | Excludes any applicable sales charge. |
|
|
2 | This row reflects the impact, if any, of fee waivers and reimbursements by the Adviser and/or affiliated service providers. |
|
|
* | Average net assets was calculated using a 360-day period. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
NEBRASKA MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
| Year | Year | Year | Year | Year | |||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.01 | $ | 10.03 | $ | 10.13 | $ | 10.20 | $ | 10.11 |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) | $ | 0.35 | $ | 0.38 | $ | 0.38 | $ | 0.39 | $ | 0.40 |
Net realized and unrealized gain (loss) on investments |
| 0.21 |
| (0.02) |
| (0.10) |
| (0.07) |
| 0.09 |
Total from investment operations | $ | 0.56 | $ | 0.36 | $ | 0.28 | $ | 0.32 | $ | 0.49 |
|
|
|
|
|
|
|
|
|
|
|
Distributions from net investment income | $ | (0.35) | $ | (0.38) | $ | (0.38) | $ | (0.39) | $ | (0.40) |
|
|
|
|
|
|
|
|
|
|
|
NET ASSET VALUE, END OF PERIOD | $ | 10.22 | $ | 10.01 | $ | 10.03 | $ | 10.13 | $ | 10.20 |
|
|
|
|
|
|
|
|
|
|
|
Total Return1 | 5.64% | 3.71% | 2.79% | 3.16% | 4.90% | |||||
|
|
|
|
|
| |||||
RATIOS/SUPPLEMENTAL DATA |
|
|
|
|
| |||||
Net assets, end of period (in thousands) | $33,816 | $28,913 | $27,229 | $28,381 | $30,742 | |||||
Ratio of expenses to average net assets after waivers2* | 1.07%3 | 1.07% | 1.07% | 1.07% | 1.03% | |||||
Ratio of expenses to average net assets before waivers* | 1.37% | 1.41% | 1.43% | 1.34% | 1.24% | |||||
Ratio of net investment income to average net assets2* | 3.41%3 | 3.84% | 3.74% | 3.81% | 3.89% | |||||
Portfolio turnover rate | 18.92% | 6.71% | 10.42% | 17.42% | 14.63% |
1 | Excludes any applicable sales charge. |
|
|
2 | This row reflects the impact, if any, of fee waivers and reimbursements by the Adviser and/or affiliated service providers. |
|
|
3 | The Adviser and/or affiliated service providers voluntarily waived a portion of their fees equal to 0.08% of average net assets. |
|
|
* | Average net assets was calculated using a 360-day period. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
OKLAHOMA MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
| Year | Year | Year | Year | Year | |||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.78 | $ | 10.75 | $ | 11.03 | $ | 11.08 | $ | 11.00 |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) | $ | 0.40 | $ | 0.41 | $ | 0.39 | $ | 0.39 | $ | 0.39 |
Net realized and unrealized gain (loss) on investments |
| 0.41 |
| 0.03 |
| (0.28) |
| (0.05) |
| 0.08 |
Total from investment operations | $ | 0.81 | $ | 0.44 | $ | 0.11 | $ | 0.34 | $ | 0.47 |
|
|
|
|
|
|
|
|
|
|
|
Distributions from net investment income | $ | (0.40) | $ | (0.41) | $ | (0.39) | $ | (0.39) | $ | (0.39) |
|
|
|
|
|
|
|
|
|
|
|
NET ASSET VALUE, END OF PERIOD | $ | 11.19 | $ | 10.78 | $ | 10.75 | $ | 11.03 | $ | 11.08 |
|
|
|
|
|
|
|
|
|
|
|
Total Return1 | 7.61% | 4.28% | 1.01% | 3.10% | 4.39% | |||||
|
|
|
|
|
| |||||
RATIOS/SUPPLEMENTAL DATA |
|
|
|
|
| |||||
Net assets, end of period (in thousands) | $35,506 | $32,019 | $42,026 | $47,847 | $43,563 | |||||
Ratio of expenses to average net assets after waivers2* | 1.07%3 | 1.07% | 1.07% | 1.07% | 1.03% | |||||
Ratio of expenses to average net assets before waivers* | 1.35% | 1.36% | 1.35% | 1.28% | 1.19% | |||||
Ratio of net investment income to average net assets2* | 3.61%3 | 3.91% | 3.55% | 3.50% | 3.55% | |||||
Portfolio turnover rate | 9.36% | 3.48% | 10.37% | 11.97% | 4.65% |
1 | Excludes any applicable sales charge. |
|
|
2 | This row reflects the impact, if any, of fee waivers and reimbursements by the Adviser and/or affiliated service providers. |
|
|
3 | The Adviser and/or affiliated service providers voluntarily waived a portion of their fees equal to 0.08% of average net assets. |
|
|
* | Average net assets was calculated using a 360-day period. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
MAINE MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
| Year | Year | Year | Year | Year | |||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.62 | $ | 10.44 | $ | 10.45 | $ | 10.52 | $ | 10.45 |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) | $ | 0.35 | $ | 0.35 | $ | 0.36 | $ | 0.37 | $ | 0.35 |
Net realized and unrealized gain (loss) on investments |
| 0.23 |
| 0.18 |
| (0.01) |
| (0.07) |
| 0.07 |
Total from investment operations | $ | 0.58 | $ | 0.53 | $ | 0.35 | $ | 0.30 | $ | 0.42 |
|
|
|
|
|
|
|
|
|
|
|
Distributions from net investment income | $ | (0.35) | $ | (0.35) | $ | (0.36) | $ | (0.37) | $ | (0.35) |
|
|
|
|
|
|
|
|
|
|
|
NET ASSET VALUE, END OF PERIOD | $ | 10.85 | $ | 10.62 | $ | 10.44 | $ | 10.45 | $ | 10.52 |
|
|
|
|
|
|
|
|
|
|
|
Total Return1 | 5.49% | 5.22% | 3.43% | 2.89% | 4.12% | |||||
|
|
|
|
|
| |||||
RATIOS/SUPPLEMENTAL DATA |
|
|
|
|
| |||||
Net assets, end of period (in thousands) | $16,467 | $15,413 | $15,880 | $16,707 | $18,728 | |||||
Ratio of expenses to average net assets after waivers2* | 1.07%3 | 1.07% | 1.07% | 1.07% | 1.02% | |||||
Ratio of expenses to average net assets before waivers* | 1.46% | 1.57% | 1.56% | 1.44% | 1.30% | |||||
Ratio of net investment income to average net assets2* | 3.21%3 | 3.38% | 3.46% | 3.52% | 3.35% | |||||
Portfolio turnover rate | 38.11% | 15.39% | 4.44% | 8.50% | 1.60% |
1 | Excludes any applicable sales charge. |
|
|
2 | This row reflects the impact, if any, of fee waivers and reimbursements by the Adviser and/or affiliated service providers. |
|
|
3 | The Adviser and/or affiliated service providers voluntarily waived a portion of their fees equal to 0.08% of average net assets. |
|
|
* | Average net assets was calculated using a 360-day period. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
NEW HAMPSHIRE MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
| Year | Year | Year | Year | Year | |||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.50 | $ | 10.32 | $ | 10.24 | $ | 10.25 | $ | 10.20 |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) | $ | 0.33 | $ | 0.29 | $ | 0.30 | $ | 0.32 | $ | 0.33 |
Net realized and unrealized gain (loss) on investments |
| 0.23 |
| 0.18 |
| 0.08 |
| (0.01) |
| 0.05 |
Total from investment operations | $ | 0.56 | $ | 0.47 | $ | 0.38 | $ | 0.31 | $ | 0.38 |
|
|
|
|
|
|
|
|
|
|
|
Distributions from net investment income | $ | (0.33) | $ | (0.29) | $ | (0.30) | $ | (0.32) | $ | (0.33) |
|
|
|
|
|
|
|
|
|
|
|
NET ASSET VALUE, END OF PERIOD | $ | 10.73 | $ | 10.50 | $ | 10.32 | $ | 10.24 | $ | 10.25 |
|
|
|
|
|
|
|
|
|
|
|
Total Return1 | 5.38% | 4.64% | 3.72% | 3.02% | 3.76% | |||||
|
|
|
|
|
| |||||
RATIOS/SUPPLEMENTAL DATA |
|
|
|
|
| |||||
Net assets, end of period (in thousands) | $3,858 | $3,816 | $3,681 | $4,188 | $5,317 | |||||
Ratio of expenses to average net assets after waivers2* | 1.07%3 | 1.07% | 1.07% | 1.07% | 1.03% | |||||
Ratio of expenses to average net assets before waivers* | 2.47% | 3.19% | 3.20% | 2.72% | 2.22% | |||||
Ratio of net investment income to average net assets2* | 3.11%3 | 2.81% | 2.87% | 3.09% | 3.19% | |||||
Portfolio turnover rate | 21.12% | 15.93% | 12.56% | 11.83% | 8.10% |
1 | Excludes any applicable sales charge. |
|
|
2 | This row reflects the impact, if any, of fee waivers and reimbursements by the Adviser and/or affiliated service providers. |
|
|
3 | The Adviser and/or affiliated service providers voluntarily waived a portion of their fees equal to 0.08% of average net assets. |
|
|
* | Average net assets was calculated using a 360-day period. |
Total return represents the rate that an investor would have earned or lost on an investment in the Fund assuming reinvestment of all dividends and distributions.
The accompanying notes are an integral part of these financial statements.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Trustees
Integrity Managed Portfolios
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Integrity Managed Portfolios comprising the Kansas Municipal Fund, Kansas Insured Intermediate Fund, Maine Municipal Fund, Nebraska Municipal Fund, New Hampshire Municipal Fund and Oklahoma Municipal Fund (the "Funds") as of July 30, 2010, and the related statements of operations, statements of changes in net assets and financial highlights for the year then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit. The statements of changes in net assets for the year ended July 31, 2009 and financial highlights for the years ended prior to July 30, 2010, were audited by another independent registered public accounting firm, who expressed an unqualified opinion on those financial statements and highlights.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of July 30, 2010, by correspondence with the Funds' custodian and broker. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds constituting Integrity Managed Portfolios as of July 30, 2010, the results of their operations, the changes in their net assets, and the financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
/s/Cohen Fund Audit Services
COHEN FUND AUDIT SERVICES, LTD.
Westlake, Ohio
September 20, 2010
EXPENSE EXAMPLE (unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads), redemption fees and exchange fees; and (2) ongoing costs, including management fees, distribution (12b-1) fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the one-half year period shown below and held for the entire one-half year period.
Actual expenses—The section in the table under the heading "Actual" provides information about actual account values and actual expenses. You may use the information in these columns together with the amount you invested to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an account value of $8,600 divided by $1,000 equals 8.6), then multiply the result by the number in the appropriate column for your share class in the column entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes—The section in the table under the heading "Hypothetical (5% return before expenses)" provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the section in the table under the heading "Hypothetical (5% return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning | Ending | Expenses | Annualized |
|
|
|
|
|
Kansas Municipal Fund |
|
|
|
|
Actual | $1,000.00 | $1,026.47 | $5.45 | 1.07% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.62 | $5.43 | 1.07% |
|
|
|
|
|
Kansas Insured Intermediate Fund |
|
|
|
|
Actual | $1,000.00 | $1,029.26 | $3.83 | 0.75% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.09 | $3.81 | 0.75% |
|
|
|
|
|
Nebraska Municipal Fund |
|
|
|
|
Actual | $1,000.00 | $1,028.46 | $5.45 | 1.07% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.62 | $5.43 | 1.07% |
|
|
|
|
|
Oklahoma Municipal Fund |
|
|
|
|
Actual | $1,000.00 | $1,036.13 | $5.48 | 1.07% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,044.62 | $5.50 | 1.07% |
|
|
|
|
|
Maine Municipal Fund |
|
|
|
|
Actual | $1,000.00 | $1,027.62 | $5.45 | 1.07% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.62 | $5.43 | 1.07% |
|
|
|
|
|
New Hampshire Municipal Fund |
|
|
|
|
Actual | $1,000.00 | $1,027.38 | $5.45 | 1.07% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.62 | $5.43 | 1.07% |
|
|
|
|
|
*Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in one-half year period, and dividend by the total number of days in the fiscal year (to reflect the one-half year period).
TAX INFORMATION (unaudited)
We are required to advise you within 60 days of the Fund's fiscal year regarding the federal tax status of distributions received by shareholders during such fiscal year. The distributions made during the fiscal year by the Funds were earned from the sources listed below (per share data). Shareholders should consult their tax adviser regarding this information.
|
|
| KS Muni Fund |
| KS Insured Fund | ||||||||||
|
|
|
| From Net |
| From Net |
| From Net |
|
| From Net |
| From Net |
| From Net |
Record | Payment |
|
| Investment |
| Realized |
| Realized |
|
| Investment |
| Realized |
| Realized |
Date | Date |
|
| Income |
| ST Gains |
| LT Gains |
|
| Income |
| ST Gains |
| LT Gains |
8/31/09 | 8/31/09 |
| $ | .032616 | $ | .000000 | $ | .000000 |
| $ | .034380 | $ | .000000 | $ | .000000 |
9/30/09 | 9/30/09 |
| $ | .031956 | $ | .000000 | $ | .000000 |
| $ | .031060 | $ | .000000 | $ | .000000 |
10/30/09 | 10/30/09 |
| $ | .032106 | $ | .000000 | $ | .000000 |
| $ | .031882 | $ | .000000 | $ | .000000 |
11/30/09 | 11/30/09 |
| $ | .032087 | $ | .000000 | $ | .000000 |
| $ | .032189 | $ | .000000 | $ | .000000 |
12/31/09 | 12/31/09 |
| $ | .032329 | $ | .000000 | $ | .000000 |
| $ | .030768 | $ | .000000 | $ | .000000 |
1/29/10 | 1/29/10 |
| $ | .031211 | $ | .000000 | $ | .000000 |
| $ | .030210 | $ | .000000 | $ | .000000 |
2/26/10 | 2/26/10 |
| $ | .029039 | $ | .000000 | $ | .000000 |
| $ | .028014 | $ | .000000 | $ | .000000 |
3/31/10 | 3/31/10 |
| $ | .036519 | $ | .000000 | $ | .000000 |
| $ | .034367 | $ | .000000 | $ | .000000 |
4/30/10 | 4/30/10 |
| $ | .030028 | $ | .000000 | $ | .000000 |
| $ | .029568 | $ | .000000 | $ | .000000 |
5/28/10 | 5/28/10 |
| $ | .028785 | $ | .000000 | $ | .000000 |
| $ | .028476 | $ | .000000 | $ | .000000 |
6/30/10 | 6/30/10 |
| $ | .033179 | $ | .000000 | $ | .000000 |
| $ | .032701 | $ | .000000 | $ | .000000 |
7/30/10 | 7/30/10 |
| $ | .030987 | $ | .000000 | $ | .000000 |
| $ | .030057 | $ | .000000 | $ | .000000 |
|
|
| NE Muni Fund |
| OK Muni Fund | ||||||||||
|
|
|
| From Net |
| From Net |
| From Net |
|
| From Net |
| From Net |
| From Net |
Record | Payment |
|
| Investment |
| Realized |
| Realized |
|
| Investment |
| Realized |
| Realized |
Date | Date |
|
| Income |
| ST Gains |
| LT Gains |
|
| Income |
| ST Gains |
| LT Gains |
8/31/09 | 8/31/09 |
| $ | .028569 | $ | .000000 | $ | .000000 |
| $ | .033146 | $ | .000000 | $ | .000000 |
9/30/09 | 9/30/09 |
| $ | .029583 | $ | .000000 | $ | .000000 |
| $ | .031762 | $ | .000000 | $ | .000000 |
10/30/09 | 10/30/09 |
| $ | .029092 | $ | .000000 | $ | .000000 |
| $ | .031692 | $ | .000000 | $ | .000000 |
11/30/09 | 11/30/09 |
| $ | .029642 | $ | .000000 | $ | .000000 |
| $ | .032110 | $ | .000000 | $ | .000000 |
12/31/09 | 12/31/09 |
| $ | .027471 | $ | .000000 | $ | .000000 |
| $ | .033374 | $ | .000000 | $ | .000000 |
1/29/10 | 1/29/10 |
| $ | .026853 | $ | .000000 | $ | .000000 |
| $ | .032733 | $ | .000000 | $ | .000000 |
2/26/10 | 2/26/10 |
| $ | .025859 | $ | .000000 | $ | .000000 |
| $ | .029914 | $ | .000000 | $ | .000000 |
3/31/10 | 3/31/10 |
| $ | .033117 | $ | .000000 | $ | .000000 |
| $ | .037744 | $ | .000000 | $ | .000000 |
4/30/10 | 4/30/10 |
| $ | .029066 | $ | .000000 | $ | .000000 |
| $ | .033442 | $ | .000000 | $ | .000000 |
5/28/10 | 5/28/10 |
| $ | .027061 | $ | .000000 | $ | .000000 |
| $ | .031969 | $ | .000000 | $ | .000000 |
6/30/10 | 6/30/10 |
| $ | .031511 | $ | .000000 | $ | .000000 |
| $ | .036807 | $ | .000000 | $ | .000000 |
7/30/10 | 7/30/10 |
| $ | .028812 | $ | .000000 | $ | .000000 |
| $ | .034110 | $ | .000000 | $ | .000000 |
|
|
| ME Muni Fund |
| NH Muni Fund | ||||||||||
|
|
|
| From Net |
| From Net |
| From Net |
|
| From Net |
| From Net |
| From Net |
Record | Payment |
|
| Investment |
| Realized |
| Realized |
|
| Investment |
| Realized |
| Realized |
Date | Date |
|
| Income |
| ST Gains |
| LT Gains |
|
| Income |
| ST Gains |
| LT Gains |
8/31/09 | 8/31/09 |
| $ | .027646 | $ | .000000 | $ | .000000 |
| $ | .027054 | $ | .000000 | $ | .000000 |
9/30/09 | 9/30/09 |
| $ | .027727 | $ | .000000 | $ | .000000 |
| $ | .027606 | $ | .000000 | $ | .000000 |
10/30/09 | 10/30/09 |
| $ | .029176 | $ | .000000 | $ | .000000 |
| $ | .027170 | $ | .000000 | $ | .000000 |
11/30/09 | 11/30/09 |
| $ | .028562 | $ | .000000 | $ | .000000 |
| $ | .027134 | $ | .000000 | $ | .000000 |
12/31/09 | 12/31/09 |
| $ | .029231 | $ | .000000 | $ | .000000 |
| $ | .024874 | $ | .000000 | $ | .000000 |
1/29/10 | 1/29/10 |
| $ | .029074 | $ | .000000 | $ | .000000 |
| $ | .024959 | $ | .000000 | $ | .000000 |
2/26/10 | 2/26/10 |
| $ | .026779 | $ | .000000 | $ | .000000 |
| $ | .024362 | $ | .000000 | $ | .000000 |
3/31/10 | 3/31/10 |
| $ | .032704 | $ | .000000 | $ | .000000 |
| $ | .030921 | $ | .000000 | $ | .000000 |
4/30/10 | 4/30/10 |
| $ | .028218 | $ | .000000 | $ | .000000 |
| $ | .027900 | $ | .000000 | $ | .000000 |
5/28/10 | 5/28/10 |
| $ | .027158 | $ | .000000 | $ | .000000 |
| $ | .026482 | $ | .000000 | $ | .000000 |
6/30/10 | 6/30/10 |
| $ | .030445 | $ | .000000 | $ | .000000 |
| $ | .029790 | $ | .000000 | $ | .000000 |
7/30/10 | 7/30/10 |
| $ | .028636 | $ | .000000 | $ | .000000 |
| $ | .028635 | $ | .000000 | $ | .000000 |
MANAGEMENT OF THE FUND (unaudited)
The Board of Trustees ("Board") of the Fund consists of four Trustees (the "Trustees"). These same individuals, unless otherwise noted, also serve as Directors or Trustees for Integrity Fund of Funds, Inc., the six series of Integrity Managed Portfolios, the three series of The Integrity Funds, and the four series of Viking Mutual Funds. Three Trustees are not "interested persons" (75% of the total) as defined under the 1940 Act (the "Independent Trustees"). The remaining Trustee is "interested" (the "Interested Trustees") by virtue of his affiliation with Viking Fund Management, LLC and its affiliates.
For the purposes of this section, the "Fund Complex" consists of Integrity Fund of Funds, Inc., the six series of Integrity Managed Portfolios, the three series of The Integrity Funds, and the four series of Viking Mutual Funds.
Each Trustee serves the Fund until its termination; or until the Trustees' retirement, resignation, or death; or otherwise as specified in the Fund's organizational documents. Each Officer serves an annual term. The tables that follow show information for each Trustee and Officer of the Funds.
INDEPENDENT TRUSTEES | |
Name, Date of Birth, Date Service Began, and Number of Funds Overseen in Fund Complex | Principal Occupations for Past Five Years |
Jerry M. Stai | Principal occupation(s): Minot State University (1999 to present); Non-Profit Specialist: Bremer Bank (2006 to present); Director/Trustee: ND Tax-Free Fund, Inc. and Montana Tax-Free Fund, Inc. (2006 to 2009), Integrity Fund of Funds, Inc., The Integrity Funds, and Integrity Managed Portfolios (2006 to present), and Viking Mutual Funds (2009 to present) |
Other Directorships Held: Marycrest Franciscan Development, Inc. | |
Orlin W. Backes | Principal occupation(s): Attorney: McGee, Hankla, Backes & Dobrovolny, P.C. (1963 to present); Director/Trustee: ND Tax-Free Fund, Inc. and Montana Tax-Free Fund, Inc. (1995 to 2009), Integrity Fund of Funds, Inc. (1995 to present), Integrity Managed Portfolios (1996 to present), The Integrity Funds (2003 to present), and Viking Mutual Funds (2009 to present) |
Other Directorships Held: First Western Bank & Trust | |
R. James Maxson | Principal occupation(s): Attorney: Maxson Law Office (2002 to present); Vice President (2008-2009) and Chair (2010-present): Minot Area Development Corporation; Director/Trustee: ND Tax-Free Fund, Inc. and Montana Tax-Free Fund, Inc. (1999 to 2009), Integrity Fund of Funds, Inc., and Integrity Managed Portfolios (1999 to present), The Integrity Funds (2003 to present), and Viking Mutual Funds (2009 to present) |
Other Directorships Held: Vincent United Methodist Foundation, Minot Area Development Corporation, Peoples State Bank of Velva |
The Statement of Additional Information ("SAI") contains more information about the Fund's Trustees and is available without charge upon request, by calling Integrity Funds Distributor at 800-276-1262.
INTERESTED TRUSTEE | |
Name, Position with Trust, Date of Birth, Date Service Began, and Number of Funds Overseen in Fund Complex | Principal Occupations for Past Five Years |
Robert E. Walstad(1) | Principal occupation(s): Governor (2009 to present): Corridor Investors, LLC; Director (1987 to 2007) and CEO (2001 to 2007): Integrity Mutual Funds, Inc.; Director, President, and Treasurer (1988 to 2007): Integrity Money Management, Inc.; Director, President, and Treasurer (1989 to 2007): Integrity Fund Services, Inc.; Director, CEO, Chairman (2002 to 2007): Capital Financial Services, Inc.; President and Interim President: ND Tax-Free Fund, Inc. (1989 to 2007 and 2008 to 2009), Montana Tax-Free Fund, Inc. (1993 to 2007 and 2008 to 2009), Integrity Managed Portfolios (1996 to 2007 and 2008 to 2009), The Integrity Funds (2003 to 2007 and 2008 to 2009), and Integrity Fund of Funds, Inc. (1995 to 2007 and 2008 to 2009); Director and Chairman: Montana Tax-Free Fund, Inc. (1993 to 2009), ND Tax-Free Fund, Inc. (1988 to 2009), and Integrity Fund of Funds, Inc. (1994 to present); Trustee and Chairman (1996 to present): Integrity Managed Portfolios; Trustee and Chairman: The Integrity Funds (2003 to present), and Viking Mutual Funds (2009 to present) |
Other Directorships Held: Minot Park Board |
(1) | Trustee who is an "interested person" of the Fund as defined in the Investment Company Act of 1940, as amended (the "1940 Act"). Mr. Walstad is an interested person by virtue of being an Officer of the Funds and ownership in Corridor Investors the parent company of Viking Fund Management, Integrity Fund Services and Integrity Funds Distributor. |
The SAI contains more information about the Fund's Trustees and is available without charge upon request, by calling Integrity Funds Distributor at 800-276-1262.
OTHER OFFICERS | |
Name, Position with Trust, Date of Birth, and Date Service Began | Principal Occupations for Past Five Years |
Shannon D. Radke | Principal occupation(s): Governor, CEO and President (2009 to present): Corridor Investors, LLC; Governor and President (1998 to present): Viking Fund Management, LLC; Governor and President (2009 to present): Integrity Fund Services, LLC and Integrity Funds Distributor, LLC; President (1999 to 2009): Viking Fund Distributors, LLC; Treasurer and Trustee (1999 to 2009) and President (1999 to present): Viking Mutual Funds; President (2009 to present): Integrity Fund of Funds, Inc., The Integrity Funds and Integrity Managed Portfolios |
Other Directorships Held: Viking Fund Management, LLC | |
Peter A. Quist | Principal occupation(s): Governor (2009 to present): Corridor Investors, LLC; Attorney; Vice President and Director (1988 to 2009): Integrity Mutual Funds, Inc.; Director, Vice President, and Secretary: ND Capital, Inc. (1988 to 2006), Integrity Money Management, Inc. (1988 to 2009), Integrity Fund Services, Inc. (1989 to 2009), and Integrity Funds Distributor, Inc. (1996 to 2009); Director, Vice President, and Secretary: ND Tax-Free Fund, Inc. (1988 to 2009) and Montana Tax-Free Fund, Inc. (1993 to 2009); Director (1994 to 2009), Secretary (1994 to 2009), and Vice President (1994 to present): Integrity Fund of Funds, Inc.; Secretary (1996 to 2009) and Vice President (1996 to present): Integrity Managed Portfolios; Secretary (2003 to 2009) and Vice President (2003 to present): The Integrity Funds; and Vice President (2009 to present): Viking Mutual Funds |
Other Directorships Held: Not applicable | |
Adam C. Forthun | Principal occupation(s): Fund Accountant (2003 to 2005), Fund Accounting Supervisor (2005 to 2008), Fund Accounting Manager (2008 to present): Integrity Fund Services, LLC; Treasurer: ND Tax-Free Fund, Inc. and Montana Tax-Free Fund, Inc. (2008 to 2009), Integrity Fund of Funds, Inc., Integrity Managed Portfolios and The Integrity Funds (2008 to present), and Viking Mutual Funds (2009 to present) |
Other Directorships Held: Not applicable | |
Brent M. Wheeler | Principal occupation(s): Fund Accounting Manager (1998 to 2005): Integrity Fund Services, Inc.; Treasurer (2004 to 2005): ND Tax-Free Fund, Inc., Montana Tax-Free Fund, Inc., Integrity Managed Portfolios, The Integrity Funds, and Integrity Fund of Funds, Inc.; Mutual Fund Chief Compliance Officer: ND Tax-Free Fund, Inc. and Montana Tax-Free Fund, Inc. (2005 to 2009), Integrity Managed Portfolios, The Integrity Funds, and Integrity Fund of Funds, Inc. (2005 to present), and Viking Mutual Funds (2009 to present); Secretary (2009 to present): Integrity Managed Portfolios, The Integrity Funds, Integrity Fund of Funds, Inc., and Viking Mutual Funds |
Other Directorships Held: Not applicable |
The SAI contains more information about the Fund's Trustees and is available without charge upon request, by calling Integrity Funds Distributor at 800-276-1262.
PRIVACY POLICY
Corridor Investors understands your concerns about safeguarding information about you and your account(s) and considers the privacy of our shareholders to be of fundamental importance. We have established the following standards to safeguard the personal and confidential information you entrust to us.
1. | Collection of Information—While we do not sell any nonpublic personal information about our customers to third parties, we do collect and retain such information about you including: | ||
|
|
|
|
|
| • | information from applications or other forms, such as you and your spouse's names, occupations, street address and social security numbers; |
|
|
|
|
|
| • | information regarding your financial position, investment experience and objectives; and |
|
|
|
|
|
| • | information about your transactions with us, our affiliates, or others, such as your account balance and transaction detail. |
|
|
|
|
2. | Disclosure of Information—Disclosure of nonpublic personal information to affiliates is often necessary to conduct our business. We have also disclosed such information to third parties as permitted by law. Some instances when we have provided information to non-affiliates include: | ||
|
|
|
|
|
| • | disclosing information necessary to process and service account transactions that you authorize; |
|
|
|
|
|
| • | disclosing your name and address to third parties who assist with mailing fund-related materials such as shareholder reports; and |
|
|
|
|
|
| • | disclosing information as required by regulatory or law enforcement agencies or with others as permitted by law. |
|
|
|
|
3. | Confidentiality and Security—We maintain physical, electronic and procedural safeguards to ensure the integrity of your personal information. | ||
|
| ||
4. | Limited Access to Information—Access to your nonpublic personal information is limited to authorized employees, affiliates and third parties. The information will then only be used for authorized purposes such as maintaining or servicing your account(s) or as otherwise permitted by law. | ||
|
| ||
5. | Further Information—If you have any questions about our privacy policy, please call us at 800-276-1262. |
PROXY VOTING OF FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to securities held in each Fund's portfolio is available, without charge and upon request, by calling 800-276-1262. A report on Form N-PX of how the Funds voted any such proxies during the most recent 12-month period ended June 30 is available through the Funds' website at www.integrityvikingfunds.com. The information is also available from the Electronic Data Gathering Analysis and Retrieval ("EDGAR") database on the website of the Securities and Exchange Commission ("SEC") at www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
Within 60 days of the end of its second and fourth fiscal quarters, the Funds provide a complete schedule of portfolio holdings in their semi-annual and annual reports on the Form N-CSR(S). These reports are filed electronically with the SEC and are delivered to the shareholders of the Funds. The Funds also file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q and N-CSR(S) are available on the SEC's website at www.sec.gov. The Funds' Forms N-Q and N-CSR(S) may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 202-551-8090. You may also access this information from the Funds' website at www.integrityvikingfunds.com.
SHAREHOLDER INQUIRIES AND MAILINGS
Direct inquiries regarding the Funds to: | Direct inquiries regarding account information to: |
To reduce their expenses, the Funds may mail only one copy of its prospectus and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive additional copies of these documents, please call Integrity Funds Distributor at 800-276-1262 or contact your financial institution. Integrity Funds Distributor will begin sending you individual copies 30 days after receiving your request.
[Logo]
Equity Funds
Williston Basin/Mid-North America Stock Fund
Integrity Growth & Income Fund
Viking Small-Cap Value Fund
Corporate Bond Fund
Integrity High Income Fund
Specialty Fund
Integrity Fund of Funds
State-Specific Tax-Exempt Bond Funds
Viking Tax-Free Fund for North Dakota
Viking Tax-Free Fund for Montana
Kansas Municipal Fund
Kansas Insured Intermediate Fund
Maine Municipal Fund
Nebraska Municipal Fund
New Hampshire Municipal Fund
Oklahoma Municipal Fund
Integrity Viking Funds are sold by prospectus only. An investor should consider the investment objectives, risks, and charges and expenses of the investment company carefully before investing. The prospectus contains this and other information about the investment company. You may obtain a prospectus at no cost from your financial adviser or at www.integrityvikingfunds.com. Please read the prospectus carefully before investing.
Item 2. CODE OF ETHICS.
At the end of the period covered by this report, the registrant has adopted a code of ethics as defined in Item 2 of Form N-CSR that applies to the registrant's principal executive officer and principal financial officer (herein referred to as the "Code"). There were no amendments to the Code during the period covered by this report. The registrant did not grant any waivers, including implicit waivers, from any provisions of the Code during the period of this report. The Code is available on the Integrity Viking Funds website at http://www.integrityvikingfunds.com. A copy of the Code is also available, without charge, upon request by calling 800-601-5593. The Code is filed herewith pursuant to Item 12(a)(1) as EX-99.CODE ETH.
Item 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees has determined that Jerry Stai is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Stai is "independent" for purposes of Item 3 of Form N-CSR.
Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
| (a) | Audit Fees: The aggregate fees billed for each of the last two fiscal years for professional services rendered by Cohen Fund Audit Services, Ltd. ("Cohen") and Brady, Martz & Associates, P.C. ("Brady, Martz"), the principal accountants for the audit of the registrant's annual financial statements, for services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $51,000 for the year ended July 30, 2010 (by Cohen) and $43,600 for the year ended July 31, 2009 (by Brady, Martz). | ||
|
|
| ||
| (b) | Audit-Related Fees: The aggregate fees billed in each of the last two fiscal years for assurance and related services by Cohen and Brady, Martz that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item were $0 for the year ended July 30, 2010 (by Cohen) and $5,400 for the year ended July 31, 2009 (by Brady, Martz). | ||
|
|
| ||
| (c) | Tax Fees: The aggregate fees billed in each of the last two fiscal years for professional services rendered by Brady, Martz for tax compliance, tax advice, and tax planning were $6,000 for the year ended July 30, 2010 and $7,800 for the year ended July 31, 2009. Such services included review of excise distribution calculations (if applicable), preparation of the Trust's federal, state, and excise tax returns, tax services related to mergers, and routine counseling. | ||
|
|
| ||
| (d) | All Other Fees: The aggregate fees billed in each of the last two fiscal years for products and services provided by Cohen and Brady, Martz, other than the services reported in paragraphs (a) through (c) of this Item: None. | ||
|
|
| ||
| (e) | (1) | Audit Committee Pre-Approval Policies and Procedures | |
|
|
|
| |
|
|
|
| The registrant's audit committee has adopted policies and procedures that require the audit committee to pre-approve all audit and non-audit services provided to the registrant by the principal accountant. |
|
|
|
| |
|
| (2) | Percentage of services referred to in 4(b) through 4(d) that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X | |
|
|
|
| |
|
|
|
| 0% of the services described in paragraphs (b) through (d) of Item 4 were not pre-approved by the audit committee. |
|
|
| ||
| (f) | All services performed on the engagement to audit the registrant's financial statements for the most recent fiscal year-end were performed by Cohen's full-time permanent employees. | ||
|
|
| ||
| (g) | Non-Audit Fees: None. | ||
|
|
| ||
| (h) | Principal Accountant's Independence: The registrant's auditor did not provide any non-audit services to the registrant's investment adviser or any entity controlling, controlled by, or controlled with the registrant's investment adviser that provides ongoing services to the registrant. |
Item 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable
Item 6. INVESTMENTS.
The Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable
Item 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable
Item 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable
Item 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of trustees in the last fiscal half-year.
Item 11. CONTROLS AND PROCEDURES.
| (a) | Based on their evaluation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this Form N-CSR (the "Report"), the registrant's principal executive officer and principal financial officer believe that the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effectively designed to ensure that information required to be disclosed by the registrant in the Report is recorded, processed, summarized and reported by the filing date, including ensuring that information required to be disclosed in the Report is accumulated and communicated to the registrant's principal executive officer and principal financial officer who are making certifications in the Report, as appropriate, to allow timely decisions regarding required disclosure. |
|
|
|
| (b) | There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant's most recent fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
Item 12. EXHIBITS.
| (a) | (1) | Code of ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99. CODE ETH. |
|
|
|
|
|
| (2) | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the 1940 Act (17 CFR 270.30a-2) is filed and attached hereto as EX-99. CERT. |
|
|
|
|
|
| (3) | Not applicable. |
|
|
| |
| (b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is filed and attached hereto. |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Integrity Managed Portfolios
By: /s/ Shannon D. Radke
Shannon D. Radke
President
September 27, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: /s/ Shannon D. Radke
Shannon D. Radke
President
September 27, 2010
By: /s/ Adam Forthun
Adam Forthun
Treasurer
September 27, 2010