Market sectors are breakdowns of the Fund's portfolio holdings into specific investment classes.
These percentages are based on net assets and are subject to change.
| | Principal
Amount | | Fair
Value |
MUNICIPAL BONDS (93.2%) |
|
Education (18.0%) |
*OK Community College Student Fac Rev 4.375% 07/01/30 | $ | 750,000 | $ | 794,888 |
Brd of Regt (OK Univ Science Ctr) 5.000% 07/01/36 | | 1,000,000 | | 1,067,650 |
McClain Cnty OK Econ Dev Auth Ed Lease Rev (Purcell Schs) 4.250% 09/01/20 | | 335,000 | | 336,109 |
OK Agric & Mech Colleges Rev (OK St Univ) 4.400% 08/01/39 | | 630,000 | | 656,680 |
OK Agric & Mech Colleges Rev (OK St Univ) 5.000% 07/01/39 | | 140,000 | | 154,091 |
OK Dev Fin Auth Lease Rev (OK St Higher Ed Master Lease) 4.500% 06/01/26 | | 250,000 | | 255,142 |
OK Dev Fin Auth Lease Rev Higher Ed Master Ppty 5.000% 06/01/29 | | 500,000 | | 586,095 |
OK Dev Fin Auth Lease Rev Higher Ed Master Ppty 5.000% 06/01/34 | | 500,000 | | 575,255 |
OK Dev Fin Auth Lease Rev Higher Ed Master Ppty 5.000% 06/01/39 | | 500,000 | | 561,995 |
OK Dev Fin Auth Lease Rev Higher Ed Master Ppty 5.000% 06/01/39 | | 500,000 | | 563,215 |
OK Dev Fin Auth Lease Rev Master St Higher Ed 4.400% 12/01/29 | | 250,000 | | 267,860 |
OK Dev Fin Auth Rev East Central Univ 4.000% 08/01/30 | | 280,000 | | 295,375 |
OK Dev Fin Auth Rev East Central Univ 4.000% 08/01/31 | | 290,000 | | 304,538 |
OK Dev Fin Auth Rev East Central Univ 4.000% 08/01/32 | | 305,000 | | 319,085 |
OK Dev Fin Auth Rev East Central Univ 4.000% 08/01/33 | | 315,000 | | 328,551 |
Univ of OK Rev 5.000% 07/01/37 | | 290,000 | | 318,635 |
Univ of OK Student Hsg (Cameron Univ) Rev 5.500% 07/01/23 | | 250,000 | | 250,892 |
| | | | 7,636,056 |
General Obligation (4.4%) |
Broken Arrow GO Series A 4.125% 08/01/31 | | 180,000 | | 192,368 |
Oklahoma City OK 4.000% 03/01/24 | | 1,000,000 | | 1,125,360 |
Oklahoma City OK 4.250% 03/01/22 | | 110,000 | | 112,556 |
Oklahoma City OK 5.000% 03/01/27 | | 400,000 | | 432,196 |
| | | | 1,862,480 |
Health Care (3.8%) |
OK Dev Fin Auth Rev (St John Hlth Sys) 5.000% 02/15/37 | | 10,000 | | 10,702 |
OK Dev Fin Auth Rev (St John Hlth Sys) 5.000% 02/15/37 | | 490,000 | | 503,348 |
OK Dev Fin Auth Rev (St John Hlth Sys) 5.000% 02/15/42 | | 250,000 | | 269,610 |
OK St Dev Fin Auth Hlth Sys Rev Ref Sef A 4.000% 08/15/38 | | 250,000 | | 251,825 |
OK St Dev Fin Auth Hlth Sys Rev Ref Sef A 5.000% 08/15/29 | | 250,000 | | 289,237 |
Tulsa Cnty Ind Auth Health Fac 4.600% 02/01/35 | | 250,000 | | 264,882 |
| | | | 1,589,604 |
Housing (1.0%) |
OK Hsg Fin Agy Single Family Mtg Rev AMT 5.050% 09/01/23 | | 190,000 | | 192,263 |
OK Hsg Fin Agy Single Family Mtg Rev AMT 5.100% 03/01/17 | | 25,000 | | 25,531 |
OK Hsg Fin Agy Single Family Mtg Rev AMT 5.100% 09/01/17 | | 20,000 | | 20,457 |
OK Hsg Fin Agy Single Family Mtg Rev AMT 5.150% 09/01/29 | | 95,000 | | 95,897 |
OK Hsg Fin Agy Single Family Mtg Rev AMT 5.200% 09/01/32 | | 95,000 | | 96,016 |
| | | | 430,164 |
Other Revenue (23.4%) |
*Rogers Cnty OK Indl Dev Auth Cap Impt Rev 4.900% 04/01/35 | | 500,000 | | 541,365 |
Collinsville OK Mun Auth Sales Tax Rev 5.000% 03/01/35 | | 275,000 | | 322,317 |
Collinsville OK Mun Auth Sales Tax Rev 5.000% 03/01/40 | | 250,000 | | 293,015 |
OK Cap Impt Auth (OK St Bureau of Investigation) 4.375% 07/01/22 | | 100,000 | | 102,314 |
OK Cap Impt Auth (OK St Bureau of Investigation) 4.375% 07/01/23 | | 100,000 | | 102,082 |
OK Cap Impt Auth (OK St Bureau of Investigation) 4.500% 07/01/24 | | 200,000 | | 204,408 |
OK Cap Impt Auth (Supreme Court Proj) 4.500% 07/01/26 | | 500,000 | | 510,195 |
OK State Water Resources Board Rev. 5.000% 10/01/29 | | 250,000 | | 292,603 |
OK State Water Resources Loan Program Rev. 5.000% 10/01/33 | | 500,000 | | 582,360 |
Oklahoma City OK Economic Dev Trust 5.000% 03/01/32 | | 250,000 | | 277,710 |
Oklahoma City OK Economic Dev Trust 5.000% 03/01/33 | | 250,000 | | 277,205 |
Oklahoma City OK Economic Dev Trust 5.000% 03/01/34 | | 500,000 | | 553,270 |
Oklahoma City OK Pub Ppty Auth Hotel Tax Rev 4.500% 10/01/31 | | 155,000 | | 160,899 |
Oklahoma City OK Pub Ppty Auth Hotel Tax Rev 5.000% 10/01/27 | | 350,000 | | 404,722 |
Oklahoma City OK Pub Ppty Auth Hotel Tax Rev 5.000% 10/01/28 | | 400,000 | | 459,604 |
Oklahoma City OK Pub Ppty Auth Hotel Tax Rev 5.000% 10/01/29 | | 625,000 | | 714,256 |
Oklahoma City OK Pub Ppty Auth Hotel Tax Rev 5.000% 10/01/36 | | 230,000 | | 255,233 |
Oklahoma City OK Pub Ppty Auth Hotel Tax Rev 5.000% 10/01/39 | | 835,000 | | 920,654 |
Oklahoma City OK Pub Ppty Auth Hotel Tax Rev 5.500% 10/01/19 | | 250,000 | | 251,925 |
Pawnee Cnty OK Pub Programs Auth Sales Tax Rev 4.875% 02/01/30 | | 145,000 | | 159,343 |
Tahlequah OK Pub Facs Auth Sales Tax Rev 4.000% 04/01/23 | | 550,000 | | 597,855 |
Tulsa Airport Impt Rev 5.000% 06/01/23 | | 420,000 | | 467,074 |
Tulsa Airport Impt Rev 5.000% 06/01/24 | | 230,000 | | 254,240 |
Tulsa Airport Impt Rev 5.250% 06/01/25 | | 245,000 | | 272,920 |
Tulsa Airport Impt Rev 5.250% 06/01/26 | | 360,000 | | 399,233 |
Tulsa OK Pkg Auth Pkg Rev 4.000% 07/01/25 | | 500,000 | | 534,175 |
| | | | 9,910,977 |
Transportation (9.1%) |
OK St Cap Impt Auth 4.000% 10/01/24 | | 1,000,000 | | 1,096,570 |
OK St Cap Impt Auth 4.000% 10/01/25 | | 1,000,000 | | 1,092,650 |
OK St Turnpike Auth Rev 5.000% 01/01/23 | | 500,000 | | 585,070 |
OK St Turnpike Auth Rev 5.000% 01/01/28 | | 250,000 | | 282,992 |
OK St Turnpike Auth Rev 5.000% 01/01/30 | | 250,000 | | 281,078 |
Oklahoma City OK Airport Tr Jr Lien Ref Series B 5.000% 07/01/19 | | 250,000 | | 270,585 |
Oklahoma City OK Airport Tr Jr Lien Ref Series B 5.000% 07/01/21 | | 250,000 | | 267,920 |
| | | | 3,876,865 |
Utilities (33.5%) |
*Grand River Dam Auth Rev 5.250% 06/01/40 | | 2,000,000 | | 2,249,340 |
*Midwest City Municipal Auth Cap Impt Rev 5.000 % 03/01/25 | | 2,000,000 | | 2,308,560 |
*OK Mun Pwr Auth Rev 5.750% 01/01/24 | | 2,230,000 | | 2,481,410 |
Claremore, OK (Public Works Util Rev.) 4.000% 07/01/19 | | 300,000 | | 330,783 |
Clinton OK Public Works Auth Utility 4.000% 12/01/34 | | 750,000 | | 776,378 |
Clinton OK Public Works Auth Utility 4.000% 12/01/39 | | 500,000 | | 501,910 |
Coweta Pub Works Util Rev 5.000% 08/01/34 | | 100,000 | | 109,260 |
Glenpool Util Rev 5.100% 12/01/35 | | 250,000 | | 280,487 |
Grand River Dam Auth Rev 4.800% 06/01/33 | | 200,000 | | 213,840 |
Grand River Dam Auth Rev 5.000% 06/01/27 | | 1,000,000 | | 1,094,520 |
McAlester OK Pub Works Auth 5.100% 02/01/30 | | 100,000 | | 100,000 |
OK Wtr Resources Brd 5.000% 04/01/28 | | 500,000 | | 559,850 |
OK Wtr Resources Brd 5.000% 04/01/32 | | 140,000 | | 158,757 |
Oklahoma City OK Wtr Util Tr Wtr & Swr Sys Rev 4.000% 07/01/34 | | 250,000 | | 258,638 |
Oklahoma City OK Wtr Util Tr Wtr & Swr Sys Rev 4.000% 07/01/39 | | 175,000 | | 181,566 |
Oklahoma City OK Wtr Util Tr Wtr & Swr Sys Rev 5.000% 07/01/31 | | 250,000 | | 283,373 |
Oklahoma City OK Wtr Util Tr Wtr & Swr Sys Rev 5.000% 07/01/34 | | 100,000 | | 116,142 |
Oklahoma St Wtr Resource Brd Rev 4.000% 04/01/25 | | 150,000 | | 165,280 |
Oklahoma St Wtr Resource Brd Rev 5.000% 04/01/23 | | 100,000 | | 119,528 |
Oklahoma St Wtr Resource Brd Rev 5.000% 04/01/24 | | 150,000 | | 178,395 |
Sallisaw OK Mun Auth Rev 4.450% 01/01/28 | | 100,000 | | 106,432 |
Sapulpa OK Mun Auth Util Sys Rev 5.000% 04/01/28 | | 750,000 | | 849,810 |
Seminole OK Utilities Auth Sales Tax Rev 3.000% 09/01/24 | | 100,000 | | 100,133 |
Seminole OK Utilities Auth Sales Tax Rev 3.150% 09/01/25 | | 380,000 | | 380,479 |
Seminole OK Utilities Auth Sales Tax Rev 3.300% 09/01/26 | | 315,000 | | 315,085 |
| | | | 14,219,956 |
|
TOTAL MUNICIPAL BONDS (COST: $38,030,228) | | | $ | 39,526,102 |
|
SHORT-TERM SECURITIES (6.0%) | | Shares | | |
^Wells Fargo Advantage National Tax-Free Money Market 0.010% (COST: $2,557,158) | | 2,557,158 | $ | 2,557,158 |
| | | | |
TOTAL INVESTMENTS IN SECURITIES (COST: $40,587,386) (99.2%) | | | $ | 42,083,260 |
OTHER ASSETS LESS LIABILITIES (0.8%) | | | | 344,228 |
|
NET ASSETS (100.0%) | | | $ | 42,427,488 |
The accompanying notes are an integral part of these financial statements.
Market sectors are breakdowns of the Fund's portfolio holdings into specific investment classes.
These percentages are based on net assets and are subject to change.
SCHEDULE OF INVESTMENTS July 31, 2015
| | Principal
Amount | | Fair
Value |
MUNICIPAL BONDS (89.8%) |
|
Education (10.9%) |
NH Health & Ed Facs Auth Rev (Pinkerton Academy) 4.625% 06/01/30 | $ | 50,000 | $ | 53,516 |
NH Health & Ed Facs Auth Rev (Pinkerton Academy) 4.875% 06/01/35 | | 70,000 | | 76,080 |
NH Health & Ed Facs Auth Rev Southern NH Univ 5.000% 01/01/17 | | 200,000 | | 211,470 |
NH Health & Ed Facs Auth Rev Southern NH Univ 5.000% 01/01/20 | | 100,000 | | 112,793 |
NH Health & Ed Facs Auth Rev Dartmouth College 5.250% 06/01/39 | | 100,000 | | 110,820 |
| | | | 564,679 |
General Obligation (42.2%) |
Carroll County NH UNLTD GO 4.000% 08/01/20 | | 100,000 | | 111,688 |
*Concord NH 4.000% 01/15/24 | | 100,000 | | 113,387 |
Dover NH GO 4.000% 6/15/28 | | 100,000 | | 107,331 |
Hillsborough NH GO 4.000% 11/01/20 | | 100,000 | | 101,129 |
Hillsborough NH GO 4.000% 11/01/21 | | 100,000 | | 101,065 |
Hooksett, NH Sch Dist GO 5.000% 07/15/22 | | 100,000 | | 119,118 |
Merrimack Cnty NH GO 4.250% 12/01/19 | | 100,000 | | 108,410 |
Merrimack Cnty NH GO 4.500% 12/01/26 | | 100,000 | | 108,964 |
Merrimack Cnty NH GO 4.500% 12/01/27 | | 100,000 | | 108,964 |
Nashua NH Unltd Go Capital Impt 3.000% 10/15/21 | | 100,000 | | 108,605 |
NH Mun Bd Bk Ref-Ser A 5.000% 08/15/25 | | 100,000 | | 122,210 |
*NH Mun Bd Bk 2009 Series D 4.000% 07/15/25 | | 175,000 | | 187,110 |
New Hampshire State G.O. Cap Impt-Ser B 5.000% 12/01/28 | | 75,000 | | 90,611 |
NH St Cap Impt GO 5.000% 12/01/26 | | 100,000 | | 121,670 |
NH St Cap Impt GO 4.750% 03/01/27 | | 100,000 | | 110,387 |
Portsmouth NH GO Cap Impt 4.000% 08/01/19 | | 100,000 | | 100,000 |
Portsmouth NH GO Cap Impt 4.000% 12/01/30 | | 100,000 | | 106,298 |
Rochester NH GO Ser A 3.000% 03/1/32 | | 130,000 | | 130,329 |
Salem NH School District GO 5.000% 11/15/24 | | 100,000 | | 121,669 |
| | | | 2,178,945 |
Health Care (19.2%) |
NH Health & Ed Facs Auth Rev Wentworth Douglas Hosp 5.500% 01/01/26 | | 100,000 | | 113,334 |
NH Health & Ed Facs Auth Rev Conway Hosp 5.250% 06/01/16 | | 100,000 | | 102,645 |
NH Health & Ed Facs Auth Rev Southern NH Med Ctr 5.250% 10/01/23 | | 100,000 | | 106,513 |
NH Health & Ed Facs Auth Rev Healthcare Sys-Covenant Hlth-B 5.000% 07/01/24 | | 100,000 | | 107,667 |
NH Health & Ed Facs Auth Rev Cheshire Med Ctr 4.000% 07/01/39 | | 100,000 | | 99,729 |
*NH Health & Ed Facs Auth Rev Covenant Health 5.000% 07/01/31 | | 150,000 | | 158,596 |
NH Health & Ed Facs Auth Rev Catholic Med Center 5.000% 07/01/24 | | 100,000 | | 112,487 |
*NH Health & Ed Facs Auth Rev Concord Hosp-Ser A 5.000% 10/01/26 | | 100,000 | | 112,634 |
NH St Health & Ed Fac Covenant Hlth Sys 5.000% 07/01/42 | | 75,000 | | 79,405 |
| | | | 993,010 |
Housing (7.9%) |
NH St Hsg Fin Auth Single Family Mtg Rev 5.350% 07/01/40 | | 75,000 | | 76,153 |
*NH St Hsg Fin Auth Single Family Mtg Rev 4.625% 07/01/25 | | 145,000 | | 149,238 |
NH St Hsg Fin Auth Single Family Mtg Rev 4.875% 07/01/28 | | 75,000 | | 78,387 |
NH St Hsg Fin Auth Multi Family Hsg 5.200% 07/01/31 | | 100,000 | | 105,765 |
| | | | 409,543 |
Other Revenue (3.0%) |
NH St Business Fin Auth Solid Waste Disp Rev - Waste Mgmt Inc 5.200% 05/01/27 | | 150,000 | | 154,471 |
| | | | |
Transportation (2.3%) |
NH St Turnpike Sys Rev 5.000% 08/01/25 | | 100,000 | | 117,291 |
| | | | |
Utilities (4.3%) |
NH St Bus Fin Auth Wtr Fac Rev AMT Pennuchuck Wtr Wks 5.000% 01/01/29 | | 100,000 | | 111,282 |
NH St Bus Fin Auth Wtr Fac Rev AMT Pennuchuck Wtr Wks 5.000% 01/01/30 | | 100,000 | | 109,510 |
| | | | 220,792 |
|
TOTAL MUNICIPAL BONDS (COST: $4,530,090) | | | $ | 4,638,731 |
|
SHORT-TERM SECURITIES (12.1%) | | Shares | | |
^Wells Fargo Advantage National Tax-Free Money Market Fund 0.010% (Cost: $624,542) | | 624,542 | $ | 624,542 |
|
TOTAL INVESTMENTS IN SECURITIES (COST: $5,154,632) (101.9%) | | | $ | 5,263,273 |
LIABILITIES IN EXCESS OF OTHER ASSETS (-1.9%) | | | | (99,054) |
|
NET ASSETS (100.0%) | | | $ | 5,164,219 |
* | Indicates all or a portion of bonds are segregated by the custodian to cover when-issued or delayed delivery purchases. |
| |
^ | Variable rate security; rate shown represents rate as of July 31, 2015. |
The accompanying notes are an integral part of these financial statements.
Statements of Assets and Liabilities July 31, 2015
| | Kansas
Municipal
Fund | | Nebraska
Municipal
Fund | | Oklahoma
Municipal
Fund | | Maine
Municipal
Fund | | New Hampshire
Municipal
Fund |
ASSETS | | | | | | | | | | | | | | | |
Investments in securities, at cost | | $ | 54,924,998 | | $ | 39,257,917 | | $ | 40,587,386 | | $ | 16,767,976 | | $ | 5,154,632 |
| | | | | | | | | | | | | | | |
Investments in securities, at fair value | | $ | 57,924,427 | | $ | 40,859,552 | | $ | 42,083,260 | | $ | 17,373,249 | | $ | 5,263,273 |
Cash | | | 0 | | | 64 | | | 0 | | | 0 | | | 0 |
Receivable for Fund shares sold | | | 2,040 | | | 3,300 | | | 46,038 | | | 0 | | | 0 |
Accrued dividends receivable | | | 3 | | | 4 | | | 43 | | | 10 | | | 5 |
Accrued interest receivable | | | 824,861 | | | 413,526 | | | 393,371 | | | 136,299 | | | 35,543 |
Prepaid expenses | | | 1,730 | | | 2,277 | | | 1,643 | | | 2,075 | | | 876 |
Total assets | | $ | 58,753,061 | | $ | 41,278,723 | | $ | 42,524,355 | | $ | 17,511,633 | | $ | 5,299,697 |
| | | | | | | | | | | | | | | |
LIABILITIES | | | | | | | | | | | | | | | |
Payable for securities purchased | | $ | 0 | | $ | 0 | | $ | 0 | | $ | 0 | | $ | 123,416 |
Payable for Fund shares redeemed | | | 61,257 | | | 5,467 | | | 6,001 | | | 2,991 | | | 17 |
Dividends payable | | | 43,453 | | | 35,236 | | | 38,778 | | | 11,098 | | | 3,899 |
Trustees' fees payable | | | 2,090 | | | 1,452 | | | 1,474 | | | 627 | | | 169 |
Payable to affiliates | | | 45,039 | | | 30,804 | | | 34,102 | | | 13,427 | | | 3,653 |
Accrued expenses | | | 22,966 | | | 16,533 | | | 16,512 | | | 8,698 | | | 4,324 |
Total liabilities | | $ | 174,805 | | $ | 89,492 | | $ | 96,867 | | $ | 36,841 | | $ | 135,478 |
| | | | | | | | | | | | | | | |
NET ASSETS | | $ | 58,578,256 | | $ | 41,189,231 | | $ | 42,427,488 | | $ | 17,474,792 | | $ | 5,164,219 |
| | | | | | | | | | | | | | | |
NET ASSETS ARE REPRESENTED BY: | | | | | | | | | | | | | | | |
Capital stock outstanding, no par value, unlimited shares authorized | | $ | 55,836,261 | | $ | 39,854,982 | | $ | 41,340,851 | | $ | 16,847,924 | | $ | 5,068,332 |
Accumulated net realized gain (loss) on investments | | | (262,545) | | | (269,719) | | | (410,097) | | | 8,442 | | | (22,202) |
Accumulated undistributed net investment income (loss) | | | 5,111 | | | 2,333 | | | 860 | | | 13,153 | | | 9,448 |
Unrealized appreciation (depreciation) on investments | | | 2,999,429 | | | 1,601,635 | | | 1,495,874 | | | 605,273 | | | 108,641 |
| | | | | | | | | | | | | | | |
NET ASSETS | | $ | 58,578,256 | | $ | 41,189,231 | | $ | 42,427,488 | | $ | 17,474,792 | | $ | 5,164,219 |
| | | | | | | | | | | | | | | |
Shares outstanding | | | 5,389,216 | | | 3,930,328 | | | 3,644,559 | | | 1,590,549 | | | 480,146 |
Net asset value per share* | | $ | 10.87 | | $ | 10.48 | | $ | 11.64 | | $ | 10.99 | | $ | 10.76 |
Public offering price (sales charge of 3.75%) | | $ | 11.29 | | $ | 10.89 | | $ | 12.09 | | $ | 11.42 | | $ | 11.18 |
* | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
The accompanying notes are an integral part of these financial statements.
Statements of Operations For the year ended July 31, 2015
| | Kansas
Municipal
Fund | | Nebraska
Municipal
Fund | | Oklahoma
Municipal
Fund | | Maine
Municipal
Fund | | New Hampshire
Municipal
Fund |
INVESTMENT INCOME | | | | | | | | | | | | | | | |
Interest | | $ | 2,223,939 | | $ | 1,495,255 | | $ | 1,397,888 | | $ | 600,552 | | $ | 152,975 |
Dividends | | | 193 | | | 128 | | | 275 | | | 118 | | | 38 |
Total investment income | | $ | 2,224,132 | | $ | 1,495,383 | | $ | 1,398,163 | | $ | 600,670 | | $ | 153,013 |
| | | | | | | | | | | | | | | |
EXPENSES | | | | | | | | | | | | | | | |
Investment advisory fees | | $ | 293,863 | | $ | 202,305 | | $ | 204,261 | | $ | 87,609 | | $ | 23,516 |
Distribution (12b-1) fees | | | 146,932 | | | 101,152 | | | 102,131 | | | 43,805 | | | 11,758 |
Transfer agent fees | | | 82,282 | | | 56,646 | | | 57,193 | | | 24,531 | | | 6,584 |
Administrative service fees | | | 106,282 | | | 80,646 | | | 81,193 | | | 48,531 | | | 30,585 |
Professional fees | | | 12,219 | | | 9,146 | | | 9,367 | | | 5,359 | | | 3,267 |
Reports to shareholders | | | 4,215 | | | 2,724 | | | 2,247 | | | 1,250 | | | 397 |
License, fees, and registrations | | | 2,880 | | | 5,266 | | | 3,905 | | | 2,159 | | | 1,082 |
Audit fees | | | 14,263 | | | 9,941 | | | 10,192 | | | 4,231 | | | 1,123 |
Trustees' fees | | | 3,294 | | | 2,267 | | | 2,288 | | | 983 | | | 262 |
Transfer agent out-of-pockets | | | 5,177 | | | 3,297 | | | 2,976 | | | 1,474 | | | 484 |
Custodian fees | | | 5,784 | | | 4,117 | | | 4,153 | | | 2,228 | | | 915 |
Legal fees | | | 4,328 | | | 2,988 | | | 2,784 | | | 1,292 | | | 345 |
Insurance expense | | | 946 | | | 640 | | | 612 | | | 273 | | | 76 |
Total expenses | | $ | 682,465 | | $ | 481,135 | | $ | 483,302 | | $ | 223,725 | | $ | 80,394 |
Less expenses waived or reimbursed | | | (106,493) | | | (84,617) | | | (82,950) | | | (52,011) | | | (34,303) |
Total net expenses | | $ | 575,972 | | $ | 396,518 | | $ | 400,352 | | $ | 171,714 | | $ | 46,091 |
| | | | | | | | | | | | | | | |
NET INVESTMENT INCOME (LOSS) | | $ | 1,648,160 | | $ | 1,098,865 | | $ | 997,811 | | $ | 428,956 | | $ | 106,922 |
| | | | | | | | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | | | | | | | | | | | | | | | |
Net realized gain (loss) from investment transactions | | $ | (5,419) | | $ | 5,696 | | $ | 27,061 | | $ | 14,679 | | $ | 5,549 |
Net change in unrealized appreciation (depreciation) on investments | | | 98,524 | | | 313,698 | | | 104,391 | | | (38,419) | | | 1,109 |
Net realized and unrealized gain (loss) on investments | | $ | 93,105 | | $ | 319,394 | | $ | 131,452 | | $ | (23,740) | | $ | 6,658 |
| | | | | | | | | | | | | | | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 1,741,265 | | $ | 1,418,259 | | $ | 1,129,263 | | $ | 405,216 | | $ | 113,580 |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets For the year ended July 31, 2015
| | Kansas
Municipal
Fund | | Nebraska
Municipal
Fund | | Oklahoma
Municipal
Fund | | Maine
Municipal
Fund | | New Hampshire
Municipal
Fund |
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 1,648,160 | | $ | 1,098,865 | | $ | 997,811 | | $ | 428,956 | | $ | 106,922 |
Net realized gain (loss) from investment transactions | | | (5,419) | | | 5,696 | | | 27,061 | | | 14,679 | | | 5,549 |
Net change in unrealized appreciation (depreciation) on investments | | | 98,524 | | | 313,698 | | | 104,391 | | | (38,419) | | | 1,109 |
Net increase (decrease) in net assets resulting from operations | | $ | 1,741,265 | | $ | 1,418,259 | | $ | 1,129,263 | | $ | 405,216 | | $ | 113,580 |
| | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS FROM | | | | | | | | | | | | | | | |
Net investment income | | $ | (1,647,296) | | $ | (1,098,476) | | $ | (997,700) | | $ | (427,448) | | $ | (105,037) |
Total distributions | | $ | (1,647,296) | | $ | (1,098,476) | | $ | (997,700) | | $ | (427,448) | | $ | (105,037) |
| | | | | | | | | | | | | | | |
CAPITAL SHARE TRANSACTIONS | | | | | | | | | | | | | | | |
Proceeds from sale of shares | | $ | 4,753,374 | | $ | 4,850,261 | | $ | 6,684,819 | | $ | 1,283,466 | | $ | 1,170,331 |
Proceeds from reinvested dividends | | | 1,141,713 | | | 665,490 | | | 522,925 | | | 294,444 | | | 66,338 |
Cost of shares redeemed | | | (6,926,940) | | | (4,380,652) | | | (3,707,085) | | | (1,532,262) | | | (764,914) |
Net increase (decrease) in net assets resulting from capital share transactions | | $ | (1,031,853) | | $ | 1,135,099 | | $ | 3,500,659 | | $ | 45,648 | | $ | 471,755 |
| | | | | | | | | | | | | | | |
TOTAL INCREASE (DECREASE) IN NET ASSETS | | $ | (937,884) | | $ | 1,454,882 | | $ | 3,632,222 | | $ | 23,416 | | $ | 480,298 |
NET ASSETS, BEGINNING OF PERIOD | | $ | 59,516,140 | | | 39,734,349 | | $ | 38,795,266 | | $ | 17,451,376 | | $ | 4,683,921 |
NET ASSETS, END OF PERIOD | | $ | 58,578,256 | | $ | 41,189,231 | | $ | 42,427,488 | | $ | 17,474,792 | | $ | 5,164,219 |
| | | | | | | | | | | | | | | |
Accumulated undistributed net investment income | | $ | 5,111 | | $ | 2,333 | | $ | 860 | | $ | 13,153 | | $ | 9,448 |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets For the year ended July 31, 2014
| | Kansas
Municipal
Fund | | Nebraska
Municipal
Fund | | Oklahoma
Municipal
Fund | | Maine
Municipal
Fund | | New Hampshire
Municipal
Fund |
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 1,795,219 | | $ | 1,161,335 | | $ | 1,068,486 | | $ | 467,251 | | $ | 128,894 |
Net realized gain (loss) from investment transactions | | | (203,844) | | | (169,547) | | | (114,349) | | | (6,237) | | | (28,820) |
Net change in unrealized appreciation (depreciation) on investments | | | 1,826,352 | | | 1,784,976 | | | 1,442,340 | | | 332,816 | | | 109,055 |
Net increase (decrease) in net assets resulting from operations | | $ | 3,417,727 | | $ | 2,776,764 | | $ | 2,396,477 | | $ | 793,830 | | $ | 209,129 |
| | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS FROM | | | | | | | | | | | | | | | |
Net investment income | | $ | (1,794,350) | | $ | (1,160,828) | | $ | (1,068,379) | | $ | (465,827) | | $ | (126,990) |
Total distributions | | $ | (1,794,350) | | $ | (1,160,828) | | $ | (1,068,379) | | $ | (465,827) | | $ | (126,990) |
| | | | | | | | | | | | | | | |
CAPITAL SHARE TRANSACTIONS | | | | | | | | | | | | | | | |
Proceeds from sale of shares | | $ | 2,249,385 | | $ | 1,680,840 | | $ | 4,674,416 | | $ | 1,129,308 | | $ | 257,076 |
Proceeds from reinvested dividends | | | 1,227,022 | | | 706,079 | | | 556,905 | | | 311,490 | | | 81,078 |
Cost of shares redeemed | | | (9,988,156) | | | (5,901,017) | | | (9,315,278) | | | (2,019,448) | | | (909,202) |
Net increase (decrease) in net assets resulting from capital share transactions | | $ | (6,511,749) | | $ | (3,514,098) | | $ | (4,083,957) | | $ | (578,650) | | $ | (571,048) |
| | | | | | | | | | | | | | | |
TOTAL INCREASE (DECREASE) IN NET ASSETS | | $ | (4,888,372) | | $ | (1,898,162) | | $ | (2,755,859) | | $ | (250,647) | | $ | (488,909) |
NET ASSETS, BEGINNING OF PERIOD | | $ | 64,404,512 | | | 41,632,511 | | $ | 41,551,125 | | $ | 17,702,023 | | $ | 5,172,830 |
NET ASSETS, END OF PERIOD | | $ | 59,516,140 | | $ | 39,734,349 | | $ | 38,795,266 | | $ | 17,451,376 | | $ | 4,683,921 |
| | | | | | | | | | | | | | | |
Accumulated undistributed net investment income | | $ | 4,248 | | $ | 3,289 | | $ | 749 | | $ | 11,645 | | $ | 8,983 |
The accompanying notes are an integral part of these financial statements.
NOTES TO FINANCIAL STATEMENTS
NOTE 1: Organization
Integrity Managed Portfolios (the "Trust") was organized as a Massachusetts business trust on August 10, 1990 and commenced operations on November 15, 1990. The Trust is registered under the Investment Company Act of 1940 as an open-end management investment company and consists of five series (the "Funds").
The Kansas Municipal Fund ("KS Muni Fund"), Nebraska Municipal Fund ("NE Muni Fund"), and Oklahoma Municipal Fund ("OK 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 as is consistent with preservation of capital. The 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) without assuming undue risk.
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. Shares of a registered investment company, including money market funds that are not traded on an exchange are valued at the investment company's net asset value per share.
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 Funds' 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. There were no when-issued securities as of July 31, 2015.
Contingent deferred sales charge—In the case of investments of $1 million or more, 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 31, 2015, 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 Statements 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 2011.
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. In addition, other amounts have been reclassified within the composition of net assets to more appropriately conform financial accounting to tax basis treatment.
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.
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 31, 2015:
| | | Level 1 | | Level 2 | | Level 3 | | Total |
KS Muni Fund | Short-Term Securities | | $ | 166,343 | | $ | 0 | | $ | 0 | | $ | 166,343 |
| Municipal Bonds | | | 0 | | | 57,758,084 | | | 0 | | | 57,758,084 |
| Total | | $ | 166,343 | | $ | 57,758,084 | | $ | 0 | | $ | 57,924,427 |
| | | | | | | | | | | | | |
NE Muni Fund | Short-Term Securities | | $ | 399,283 | | $ | 0 | | $ | 0 | | $ | 399,283 |
| Municipal Bonds | | | 0 | | | 40,460,269 | | | 0 | | | 40,460,269 |
| Total | | $ | 399,283 | | $ | 40,460,269 | | $ | 0 | | $ | 40,859,552 |
| | | | | | | | | | | | | |
OK Muni Fund | Short-Term Securities | | $ | 2,557,158 | | $ | 0 | | $ | 0 | | $ | 2,557,158 |
| Municipal Bonds | | | 0 | | | 39,526,102 | | | 0 | | | 39,526,102 |
| Total | | $ | 2,557,158 | | $ | 39,526,102 | | $ | 0 | | $ | 42,083,260 |
| | | | | | | | | | | | | |
ME Muni Fund | Short-Term Securities | | $ | 982,016 | | $ | 0 | | $ | 0 | | $ | 982,016 |
| Municipal Bonds | | | 0 | | | 16,391,233 | | | 0 | | | 16,391,233 |
| Total | | $ | 982,016 | | $ | 16,391,233 | | $ | 0 | | $ | 17,373,249 |
| | | | | | | | | | | | | |
NH Muni Fund | Short-Term Securities | | $ | 624,542 | | $ | 0 | | $ | 0 | | $ | 624,542 |
| Municipal Bonds | | | 0 | | | 4,638,731 | | | 0 | | | 4,638,731 |
| Total | | $ | 624,542 | | $ | 4,638,731 | | $ | 0 | | $ | 5,263,273 |
See Schedule of Investments to view by type of obligation. The Funds did not hold any Level 3 assets during the year ended July 31, 2015. There were no transfers into or out of Level 1 or Level 2 during the year ended July 31, 2015. The Funds consider transfers into or out of Level 1 and Level 2 as of the end of the reporting period. The Funds did not hold any derivative instruments at any time during the year ended July 31, 2015.
NOTE 4: Investment Transactions
Purchases and sales of investment securities (excluding short-term securities) for the year ended July 31, 2015, were as follows:
| KS Muni | | NE Muni | | OK Muni | | ME Muni | | NH Muni |
| Fund | | Fund | | Fund | | Fund | | Fund |
Purchases | $ | 6,893,398 | | $ | 6,817,772 | | $ | 10,520,168 | | $ | 3,212,951 | | $ | 926,346 |
Sales | $ | 6,199,518 | | $ | 4,606,457 | | $ | 5,545,391 | | $ | 2,662,300 | | $ | 567,000 |
NOTE 5: Capital Share Transactions
Transactions in capital shares were as follows:
| | KS Muni | | NE Muni | | OK Muni | | ME Muni | | NH Muni |
Year Ended 7/31/15: | | Fund | | Fund | | Fund | | Fund | | Fund |
Shares sold | | 434,821 | | 462,386 | | 572,764 | | 116,160 | | 108,612 |
Shares issued on reinvestment of dividends | | 104,484 | | 63,312 | | 44,740 | | 26,611 | | 6,140 |
Shares redeemed | | (633,613) | | (416,575) | | (317,309) | | (138,627) | | (70,882) |
Net increase (decrease) | | (94,308) | | 109,123 | | 300,195 | | 4,144 | | 43,870 |
| | | | | | | | | | |
| | KS Muni | | NE Muni | | OK Muni | | ME Muni | | NH Muni |
Year Ended 7/31/14: | | Fund | | Fund | | Fund | | Fund | | Fund |
Shares sold | | 209,797 | | 165,008 | | 408,076 | | 103,905 | | 24,096 |
Shares issued on reinvestment of dividends | | 114,553 | | 69,285 | | 48,847 | | 28,636 | | 7,632 |
Shares redeemed | | (938,341) | | (582,370) | | (821,520) | | (186,424) | | (85,817) |
Net increase (decrease) | | (613,991) | | (348,077) | | (364,597) | | (53,883) | | (54,089) |
NOTE 6: Income Tax Information
At July 31, 2015, the net unrealized appreciation (depreciation) based on the cost of investments for federal income tax purposes was as follows:
| KS Muni | NE Muni | OK Muni | ME Muni | NH Muni |
| Fund | Fund | Fund | Fund | Fund |
Investments at cost | $54,919,887 | $39,255,584 | $40,586,526 | $16,754,823 | $5,145,184 |
Unrealized appreciation | $3,038,918 | $1,716,298 | $1,541,523 | $682,811 | $135,943 |
Unrealized depreciation | (34,378) | (112,330) | (44,789) | (64,385) | (17,854) |
Net unrealized appreciation* | $3,004,540 | $1,603,968 | $1,496,734 | $618,426 | $118,089 |
* | 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 | NE Muni | OK Muni | ME Muni | NH Muni |
Tax-exempt income: | Fund | Fund | Fund | Fund | Fund |
Year Ended 7/31/15 | $1,647,296 | $1,098,476 | $997,700 | $427,448 | $105,037 |
Year Ended 7/31/14 | $1,794,350 | $1,160,828 | $1,068,379 | $465,827 | $126,990 |
As of July 31, 2015, the components of accumulated earnings/(deficit) on a tax basis were as follows:
| KS Muni | NE Muni | OK Muni | ME Muni | NH Muni |
| Fund | Fund | Fund | Fund | Fund |
Undistributed ordinary income | $0 | $0 | $0 | $0 | $0 |
Undistributed capital gain | 0 | 0 | 0 | $8,442 | 0 |
Accumulated capital and other losses | ($262,545) | ($269,719) | ($410,097) | $0 | ($22,202) |
Unrealized appreciation/(depreciation)* | 3,004,540 | 1,603,968 | 1,496,734 | 618,426 | 118,089 |
Total accumulated earnings/(deficit) | $2,741,995 | $1,334,249 | $1,086,637 | $626,868 | $95,887 |
* | Differences between financial reporting-basis and tax-basis are due to differing treatment of market discount. |
Under the Regulated Investment Company Modernization Act of 2010 ("Act"), funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period of time. The short-term and long-term character of such losses are retained rather than being treated as short-term as under previous law. Pre-enactment losses are eligible to be carried forward for a maximum period of eight years. Pursuant to the Act, post-enactment capital losses must be utilized before pre-enactment capital losses. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. The Funds' capital loss carryforward amounts as of July 31, 2015 are as follows:
| | KS Muni
Fund | | | NE Muni
Fund | | | OK Muni
Fund | | | NH Muni
Fund |
Expires in 2016 | | - | | | - | | | - | | | 529 |
Expires in 2018 | | - | | | - | | | 260,308 | | | - |
Non-expiring S-T losses | | 133,526 | | | 177,427 | | | 52,684 | | | 8,318 |
Non-expiring L-T losses | | 129,019 | | | 92,292 | | | 97,105 | | | 13,355 |
Total | $ | 262,545 | | $ | 269,719 | | $ | 410,097 | | $ | 22,202 |
For the year ended July 31, 2015, KS Muni Fund has expired capital loss carryforwards of $240,848. For the year ended July 31, 2015, OK Muni Fund and NH Muni Fund utilized capital loss carryforwards of $23,571 and $6,970, respectively.
NOTE 7: Investment Advisory Fees and Other Transactions with Affiliates
Viking Fund Management ("VFM"), 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. A Trustee of the Funds is also a Governor of Corridor.
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 0.50% of the each Fund's average daily net assets. Under the terms of the Advisory Agreement, VFM has contractually agreed to waive its management fee and to reimburse expenses for the Funds, other than extraordinary or non-recurring expenses and acquired fund fees and expenses, until November 29, 2015 so that the net annual operating expenses do not exceed 0.98%. After November 29, 2015, the expense limitation may be terminated or revised. 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. An expense limitation lowers expense ratios and increases returns to investors. Certain Officers of the Funds are also Officers and Governors of VFM.
| Year Ended 7/31/15 | | Payable at 7/31/15 |
| Advisory Fees | | Advisory Fees |
KS Muni Fund | $ | 293,863 | | $ | 24,273 |
NE Muni Fund | $ | 202,305 | | $ | 17,086 |
OK Muni Fund | $ | 204,261 | | $ | 17,628 |
ME Muni Fund | $ | 87,609 | | $ | 7,257 |
NH Muni Fund | $ | 23,516 | | $ | 2,151 |
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 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 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 7/31/15 | | Payable at 7/31/15 |
| Sales | | Distribution | | Sales | | Distribution |
| Charges | CDSC | Fees | | Charges | CDSC | Fees |
KS Muni Fund | $ | 93,558 | $ | 0 | $ | 146,932 | | $ | 1,028 | $ | 0 | $ | 12,137 |
NE Muni Fund | $ | 81,661 | $ | 0 | $ | 101,152 | | $ | 154 | $ | 0 | $ | 8,543 |
OK Muni Fund | $ | 127,446 | $ | 0 | $ | 102,131 | | $ | 2,348 | $ | 0 | $ | 8,814 |
ME Muni Fund | $ | 15,864 | $ | 0 | $ | 43,805 | | $ | 584 | $ | 0 | $ | 3,628 |
NH Muni Fund | $ | 17,700 | $ | 0 | $ | 11,758 | | $ | 2 | $ | 0 | $ | 1,075 |
IFS acts as the Funds' transfer agent for a monthly variable fee equal to 0.14% of the Funds' average daily net assets on an annual basis for the Funds' first $200 million and at a lower rate on the average daily net assets in excess of $200 million plus reimbursement of out-of-pocket expenses. IFS also acts as the Funds' administrative services agent for a monthly fee equal to the sum of a fixed fee of $2,000 and a variable fee equal to 0.14% of the Funds' average daily net assets on an annual basis for the Funds' first $200 million and at a lower rate on the average daily net assets in excess of $200 million plus reimbursement of out-of-pocket expenses. Certain Officers of the Funds are also Officers and Governors of IFS.
| Year Ended 7/31/15 | | Payable at 7/31/15 |
| Transfer | Transfer | Admin. | Admin. | | Transfer | Admin. |
| Agency | Agency | Service | Service | | Agency | Service |
| Fees Net* | Fees Waived | Fees Net* | Fees Waived | | Fees* | Fees* |
KS Muni Fund | $ | 40,990 | $ | 46,469 | $ | 46,258 | $ | 60,024 | | $ | 4,049 | $ | 3,552 |
NE Muni Fund | $ | 25,030 | $ | 34,913 | $ | 30,942 | $ | 49,704 | | $ | 2,627 | $ | 2,394 |
OK Muni Fund | $ | 25,885 | $ | 34,284 | $ | 32,527 | $ | 48,666 | | $ | 2,734 | $ | 2,578 |
ME Muni Fund | $ | 8,542 | $ | 17,463 | $ | 13,983 | $ | 34,548 | | $ | 922 | $ | 1,036 |
NH Muni Fund | $ | 992 | $ | 6,076 | $ | 2,358 | $ | 28,227 | | $ | 193 | $ | 232 |
NOTE 8: Principal Risks
The Funds invest primarily in municipal securities from a specific state. The Funds may also invest in municipal securities of U.S. territories and possessions (such as Puerto Rico, the U.S. Virgin Islands, and Guam). Each Fund is therefore more susceptible to political, economic, legislative, or regulatory factors adversely affecting issuers of municipal securities in its specific state or U.S. territories and possessions.
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.
KANSAS MUNICIPAL FUND
Selected per share data and ratios for the periods indicated
| Year
Ended
7/31/15 | Year
Ended
7/31/14 | Year
Ended
7/31/13 | Year
Ended
7/31/12 | Year
Ended
7/29/11 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.85 | $ | 10.56 | $ | 11.12 | $ | 10.64 | $ | 10.70 |
| | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | |
Net investment income (loss) | $ | 0.31 | $ | 0.32 | $ | 0.30 | $ | 0.37 | $ | 0.37 |
Net realized and unrealized gain (loss) on investments3 | | 0.02 | | 0.29 | | (0.56) | | 0.48 | | (0.06) |
Total from investment operations | $ | 0.33 | $ | 0.61 | $ | (0.26) | $ | 0.85 | $ | 0.31 |
| | | | | | | | | | |
Distributions from net investment income | $ | (0.31) | $ | (0.32) | $ | (0.30) | $ | (0.37) | $ | (0.37) |
| | | | | | | | | | |
NET ASSET VALUE, END OF PERIOD | $ | 10.87 | $ | 10.85 | $ | 10.56 | $ | 11.12 | $ | 10.64 |
| | | | | |
Total Return (excludes any applicable sales charge) | 3.03% | 5.81% | (2.37%) | 8.07% | 3.02% |
| | | | | |
RATIOS/SUPPLEMENTAL DATA | | | | | |
Net assets, end of period (in thousands) | $58,578 | $59,516 | $64,405 | $48,093 | $45,175 |
Ratio of expenses to average net assets after waivers1,2* | 0.98% | 1.01% | 1.08% | 1.07% | 1.07% |
Ratio of expenses to average net assets before waivers2 | 1.16% | 1.16% | 1.17% | 1.18% | 1.30% |
Ratio of net investment income to average net assets1,2* | 2.80% | 2.95% | 2.75% | 3.36% | 3.54% |
Portfolio turnover rate | 10.87% | 6.63% | 13.40% | 11.46% | 8.31% |
1 | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
| |
2 | Average net assets was calculated using a 360-day period. |
| |
3 | Realized and unrealized gains and loss per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period. |
| |
* | For the year ended July 31, 2012, the Adviser and/or affiliated service providers voluntarily waived a portion of their fees equal to 0.08% of average net assets for the period of August 1, 2011 through April 30, 2012. For the year ended July 29, 2011, the Adviser and/or affiliated service providers voluntarily waived a portion of their fees equal to 0.08% of average net assets. |
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
Selected per share data and ratios for the periods indicated
| Year
Ended
7/31/15 | Year
Ended
7/31/14 | Year
Ended
7/31/13 | Year
Ended
7/31/12 | Year
Ended
7/29/11 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.40 | $ | 9.99 | $ | 10.69 | $ | 10.20 | $ | 10.22 |
| | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | |
Net investment income (loss) | $ | 0.29 | $ | 0.29 | $ | 0.29 | $ | 0.34 | $ | 0.35 |
Net realized and unrealized gain (loss) on investments3 | | 0.08 | | 0.41 | | (0.70) | | 0.49 | | (0.02) |
Total from investment operations | $ | 0.37 | $ | 0.70 | $ | (0.41) | $ | 0.83 | $ | 0.33 |
| | | | | | | | | | |
Distributions from net investment income | $ | (0.29) | $ | (0.29) | $ | (0.29) | $ | (0.34) | $ | (0.35) |
| | | | | | | | | | |
NET ASSET VALUE, END OF PERIOD | $ | 10.48 | $ | 10.40 | $ | 9.99 | $ | 10.69 | $ | 10.20 |
| | | | | | | | | | |
Total Return (excludes any applicable sales charge) | 3.54% | 7.14% | (3.96%) | 8.23% | 3.29% |
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RATIOS/SUPPLEMENTAL DATA | | | | | |
Net assets, end of period (in thousands) | $41,189 | $39,734 | $41,633 | $46,038 | $35,808 |
Ratio of expenses to average net assets after waivers1,2* | 0.98% | 1.01% | 1.08% | 1.07% | 1.07% |
Ratio of expenses to average net assets before waivers2 | 1.19% | 1.20% | 1.20% | 1.21% | 1.33% |
Ratio of net investment income to average net assets1,2* | 2.72% | 2.89% | 2.72% | 3.22% | 3.44% |
Portfolio turnover rate | 11.76% | 3.88% | 23.65% | 12.38% | 11.01% |
1 | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
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2 | Average net assets was calculated using a 360-day period. |
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3 | Realized and unrealized gains and loss per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period. |
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* | For the year ended July 31, 2012, the Adviser and/or affiliated service providers voluntarily waived a portion of their fees equal to 0.08% of average net assets for the period of August 1, 2011 through April 30, 2012. For the years ended July 29, 2011, the Adviser and/or affiliated service providers voluntarily waived a portion of their fees equal to 0.08% of average net assets. |
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
Selected per share data and ratios for the periods indicated
| Year
Ended
7/31/15 | Year
Ended
7/31/14 | Year
Ended
7/31/13 | Year
Ended
7/31/12 | Year
Ended
7/29/11 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 11.60 | $ | 11.20 | $ | 11.93 | $ | 11.24 | $ | 11.19 |
| | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | |
Net investment income (loss) | $ | 0.29 | $ | 0.31 | $ | 0.32 | $ | 0.34 | $ | 0.40 |
Net realized and unrealized gain (loss) on investments3 | | 0.04 | | 0.40 | | (0.73) | | 0.69 | | 0.05 |
Total from investment operations | $ | 0.33 | $ | 0.71 | $ | (0.41) | $ | 1.03 | $ | 0.45 |
| | | | | | | | | | |
Distributions from net investment income | $ | (0.29) | $ | (0.31) | $ | (0.32) | $ | (0.34) | $ | (0.40) |
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NET ASSET VALUE, END OF PERIOD | $ | 11.64 | $ | 11.60 | $ | 11.20 | $ | 11.93 | $ | 11.24 |
| | | | | | | | | | |
Total Return (excludes any applicable sales charge) | 2.82% | 6.42% | (3.54%) | 9.30% | 4.15% |
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RATIOS/SUPPLEMENTAL DATA | | | | | |
Net assets, end of period (in thousands) | $42,427 | $38,795 | $41,551 | $43,253 | $33,156 |
Ratio of expenses to average net assets after waivers1,2* | 0.98% | 1.01% | 1.08% | 1.07% | 1.07% |
Ratio of expenses to average net assets before waivers2 | 1.18% | 1.19% | 1.18% | 1.19% | 1.32% |
Ratio of net investment income to average net assets1,2* | 2.44% | 2.72% | 2.70% | 2.93% | 3.62% |
Portfolio turnover rate | 14.53% | 1.41% | 9.54% | 17.72% | 13.35% |
1 | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
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2 | Average net assets was calculated using a 360-day period. |
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3 | Realized and unrealized gains and loss per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period. |
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* | For the year ended July 31, 2012, the Adviser and/or affiliated service providers voluntarily waived a portion of their fees equal to 0.08% of average net assets for the period of August 1, 2011 through April 30, 2012. For the year ended July 29, 2011, the Adviser and/or affiliated service providers voluntarily waived a portion of their fees equal to 0.08% of average net assets. |
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
Selected per share data and ratios for the periods indicated
| Year
Ended
7/31/15 | Year
Ended
7/31/14 | Year
Ended
7/31/13 | Year
Ended
7/31/12 | Year
Ended
7/29/11 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 11.00 | $ | 10.79 | $ | 11.36 | $ | 10.77 | $ | 10.85 |
| | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | |
Net investment income (loss) | $ | 0.27 | $ | 0.29 | $ | 0.31 | $ | 0.34 | $ | 0.34 |
Net realized and unrealized gain (loss) on investments3 | | (0.01) | | 0.21 | | (0.57) | | 0.59 | | (0.08) |
Total from investment operations | $ | 0.26 | $ | 0.50 | $ | (0.26) | $ | 0.93 | $ | 0.26 |
| | | | | | | | | | |
Distributions from net investment income | $ | (0.27) | $ | (0.29) | $ | (0.31) | $ | (0.34) | $ | (0.34) |
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NET ASSET VALUE, END OF PERIOD | $ | 10.99 | $ | 11.00 | $ | 10.79 | $ | 11.36 | $ | 10.77 |
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Total Return (excludes any applicable sales charge) | 2.37% | 4.72% | (2.37%) | 8.79% | 2.50% |
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RATIOS/SUPPLEMENTAL DATA | | | | | |
Net assets, end of period (in thousands) | $17,475 | $17,451 | $17,702 | $18,084 | $16,176 |
Ratio of expenses to average net assets after waivers1,2* | 0.98% | 1.01% | 1.08% | 1.07% | 1.07% |
Ratio of expenses to average net assets before waivers2 | 1.28% | 1.28% | 1.27% | 1.29% | 1.41% |
Ratio of net investment income to average net assets1,2* | 2.45% | 2.70% | 2.76% | 3.11% | 3.22% |
Portfolio turnover rate | 16.18% | 11.27% | 11.52% | 1.87% | 8.00% |
1 | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
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2 | Average net assets was calculated using a 360-day period. |
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3 | Realized and unrealized gains and loss per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period. |
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* | For the year ended July 31, 2012, the Adviser and/or affiliated service providers voluntarily waived a portion of their fees equal to 0.08% of average net assets for the period of August 1, 2011 through April 30, 2012. For the year ended July 29, 2011, the Adviser and/or affiliated service providers voluntarily waived a portion of their fees equal to 0.08% of average net assets. |
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
Selected per share data and ratios for the periods indicated
| Year
Ended
7/31/15 | Year
Ended
7/31/14 | Year
Ended
7/31/13 | Year
Ended
7/31/12 | Year
Ended
7/29/11 |
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.74 | $ | 10.55 | $ | 11.07 | $ | 10.66 | $ | 10.73 |
| | | | | | | | | | |
Income (loss) from investment operations: | | | | | | | | | | |
Net investment income (loss) | $ | 0.24 | $ | 0.28 | $ | 0.28 | $ | 0.33 | $ | 0.35 |
Net realized and unrealized gain (loss) on investments3 | | 0.02 | | 0.19 | | (0.52) | | 0.41 | | (0.07) |
Total from investment operations | $ | 0.26 | $ | 0.47 | $ | (0.24) | $ | 0.74 | $ | 0.28 |
| | | | | | | | | | |
Distributions from net investment income | $ | (0.24) | $ | (0.28) | $ | (0.28) | $ | (0.33) | $ | (0.35) |
| | | | | | | | | | |
NET ASSET VALUE, END OF PERIOD | $ | 10.76 | $ | 10.74 | $ | 10.55 | $ | 11.07 | $ | 10.66 |
| | | | | | | | | | |
Total Return (excludes any applicable sales charge) | 2.45% | 4.53% | (2.19%) | 7.04% | 2.64% |
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RATIOS/SUPPLEMENTAL DATA | | | | | |
Net assets, end of period (in thousands) | $5,164 | $4,684 | $5,173 | $4,854 | $4,150 |
Ratio of expenses to average net assets after waivers1,2* | 0.98% | 1.01% | 1.08% | 1.07% | 1.07% |
Ratio of expenses to average net assets before waivers2 | 1.71% | 1.71% | 1.67% | 1.78% | 1.93% |
Ratio of net investment income to average net assets1,2* | 2.27% | 2.68% | 2.62% | 3.07% | 3.30% |
Portfolio turnover rate | 13.08% | 4.85% | 10.57% | 13.73% | 10.19% |
1 | This row reflects the impact, if any, of fee waivers or reimbursements by the Adviser and/or affiliated service providers. |
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2 | Average net assets was calculated using a 360-day period. |
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3 | Realized and unrealized gains and loss per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period. |
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* | For the year ended July 31, 2012, the Adviser and/or affiliated service providers voluntarily waived a portion of their fees equal to 0.08% of average net assets for the period of August 1, 2011 through April 30, 2012. For the year ended July 29, 2011, the Adviser and/or affiliated service providers voluntarily waived a portion of their fees equal to 0.08% of average net assets. |
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 Kansas Municipal Fund, Maine Municipal Fund, Nebraska Municipal Fund, New Hampshire Municipal Fund, and Oklahoma Municipal Fund (the "Funds") as of July 31, 2015, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period 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 audits.
We conducted our audits 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 31, 2015, by correspondence with the custodian and brokers. 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 audits provide 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 31, 2015, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period 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.
Cleveland, Ohio
September 24, 2015
EXPENSE EXAMPLE (unaudited)
As a shareholder of the Funds, 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
Account
Value
1/30/2015 | Ending
Account
Value
7/31/2015 | Expenses
Paid During
Period* | Annualized
Expense
Ratio |
Kansas Municipal Fund | | | | |
Actual | $1,000.00 | $995.87 | $4.89 | 0.98% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.03 | $4.95 | 0.98% |
Nebraska Municipal Fund | | | | |
Actual | $1,000.00 | $994.54 | $4.89 | 0.98% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.03 | $4.95 | 0.98% |
Oklahoma Municipal Fund | | | | |
Actual | $1,000.00 | $991.86 | $4.88 | 0.98% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.03 | $4.95 | 0.98% |
Maine Municipal Fund | | | | |
Actual | $1,000.00 | $988.22 | $4.87 | 0.98% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.03 | $4.95 | 0.98% |
New Hampshire Municipal Fund | | | | |
Actual | $1,000.00 | $994.31 | $4.89 | 0.98% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.03 | $4.95 | 0.98% |
* | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 180 days in one-half year period, and dividend by 360 days in the fiscal year (to reflect the one-half year period). |
BOARD OF TRUSTEES AND OFFICERS (unaudited)
The Board of Trustees ("Board") of the Funds consists of four Trustees (the "Trustees"). These same individuals, unless otherwise noted, also serve as Trustees for the five series of Integrity Managed Portfolios, the four series of The Integrity Funds, and the two 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 the five series of Integrity Managed Portfolios, the four series of The Integrity Funds, and the two series of Viking Mutual Funds.
Each Trustee serves a Fund until its termination; or until the Trustee's retirement, resignation, or death; or otherwise as specified in the Funds' 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
and Directorships Held During Past Five Years |
Jerry M. Stai
Birth date: March 31, 1952
Began serving: January 2006
Funds overseen: 11 funds | Principal occupation(s): Minot State University (1999 to present); Non-Profit Specialist, Bremer Bank (2006 to 2014); Director/Trustee: Integrity Fund of Funds, Inc. (2006 to 2012), The Integrity Funds and Integrity Managed Portfolios (2006 to present), and Viking Mutual Funds (2009 to present) Other Directorships Held: Not Applicable |
Orlin W. Backes
Birth date: May 11, 1935
Began serving: January 1996
Funds overseen: 11 funds | Principal occupation(s): Attorney: McGee, Hankla, Backes & Dobrovolny, P.C. (1963 to 2012); Director/Trustee: Integrity Fund of Funds, Inc. (1995 to 2012), 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
Birth date: December 12, 1947
Began serving: January 1999
Funds overseen: 11 funds | Principal occupation(s): Attorney: Maxson Law Office P.C. (2002 to present); Director/Trustee: Integrity Fund of Funds, Inc. (1999 to 2012), 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, Peoples State Bank of Velva, St. Joseph's Community Health Foundation and St. Joseph's Foundation, Minot Area Development Corporation, Kennedy Memorial Foundation, Minot Community Land Trust |
The Statement of Additional Information ("SAI") contains more information about the Funds' 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
and Directorships Held During Past Five Years |
Robert E. Walstad(1)
Trustee, and Chairman
Birth date: August 16, 1944
Began serving: January 1996
Funds overseen: 11 funds | Principal occupation(s): Governor (2009 to present): Corridor Investors, LLC; Portfolio Manager (2010 to 2013): Viking Fund Management, LLC; Director and Chairman: Integrity Fund of Funds, Inc. (1994 to 2012); Trustee and Chairman: Integrity Managed Portfolios (1996 to present), The Integrity Funds (2003 to present), and Viking Mutual Funds (2009 to present) Other Directorships Held: Governor: Mainstream Investors, LLC (2012) |
(1) | Trustee who is an "interested person" of the Funds 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. |
OTHER OFFICERS |
Name, Position with Trust, Date of Birth, and Date Service Began | Principal Occupations for Past Five Years
and Directorships Held During Past Five Years |
Shannon D. Radke
President
Birth date: September 7, 1966
Began serving: August 2009 | 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 (2009 to 2012): Integrity Fund of Funds, Inc.; President (1999 to present): Viking Mutual Funds; President: (2009 to present), The Integrity Funds and Integrity Managed Portfolios Other Directorships Held: Minot Chamber of Commerce |
Peter A. Quist
Vice President
Birth date: February 23, 1934
Began serving: January 1996 | Principal occupation(s): Governor (2009 to present): Corridor Investors, LLC; Attorney (inactive); Vice President (1994 to 2012): Integrity Fund of Funds, Inc.; Vice President: Integrity Managed Portfolios (1996 to present); The Integrity Funds (2003 to present); and Viking Mutual Funds (2009 to present) Other Directorships Held: Not applicable |
Adam C. Forthun
Treasurer
Birth date: June 30, 1976
Began serving: May 2008 | Principal occupation(s): Fund Accounting Manager (2008 to present) and Chief Operating Officer (2013 to present): Integrity Fund Services, LLC; Treasurer: Integrity Fund of Funds, Inc. (2008 to 2012), 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
Secretary and Mutual Fund
Chief Compliance Officer
Birth date: October 9, 1970
Began serving: MF CCO: October 2005
Secretary: October 2009 | Principal occupation(s): Mutual Fund Chief Compliance Officer: Integrity Fund of Funds, Inc. (2005 to 2012), Integrity Managed Portfolios and The Integrity Funds, (2005 to present), and Viking Mutual Funds (2009 to present); Secretary (2009 to 2012): Integrity Fund of Funds, Inc.; Secretary (2009 to present): Integrity Managed Portfolios, The Integrity Funds, and Viking Mutual Funds Other Directorships Held: Not applicable |
The SAI contains more information about the Funds' Trustees and is available without charge upon request, by calling Integrity Funds Distributor at 800-276-1262.
Rev. 12/2012
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FACTS | WHAT DOES INTEGRITY VIKING FUNDS DO WITH YOUR PERSONAL INFORMATION? |
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Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
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What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include: |
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• | Social Security number, name, address |
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• | Account balance, transaction history, account transactions |
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• | Investment experience, wire transfer instructions |
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When you are no longer our customer, we continue to share your information as described in this notice. |
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How? | All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons Integrity Viking Funds chooses to share; and whether you can limit this sharing. |
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Reasons we can share your personal information | Does Integrity Viking Funds share? | Can you limit this sharing? |
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For our everyday business purposes— | Yes | No |
| such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus |
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For our marketing purposes— | Yes | No |
| to offer our products and services to you |
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For joint marketing with other financial companies | No | We don't share |
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For our affiliates' everyday business purposes— | Yes | No |
| information about your transactions and experiences |
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For our affiliates' everyday business purposes— | No | We don't share |
| information about your creditworthiness |
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For non-affiliates to market to you | No | We don't share |
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Questions? | Call 1-800-601-5593 or go to www.integrityvikingfunds.com |
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PRIVACY POLICY (Continued)
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Who we are |
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Who is providing this notice? | Integrity Viking Funds (a family of investment companies) |
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What we do |
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How does Integrity Viking Funds protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We |
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• | train employees on privacy, information security and protection of client information. |
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• | limit access to nonpublic personal information to those employees requiring such information in performing their job functions. |
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How does Integrity Viking Funds collect my personal information? | We collect your personal information, for example, when you: |
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• | open an account or seek financial or tax advice |
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• | provide account information or give us your contact information |
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• | make a wire transfer |
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We also collect your personal information from other companies. |
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Why can't I limit all sharing? | Federal law gives you the right to limit only: |
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• | sharing for affiliates' everyday business purposes—information about your creditworthiness |
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• | affiliates from using your information to market to you |
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• | sharing for non-affiliates to market to you |
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State laws and individual companies may give you additional rights to limit sharing. |
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Definitions |
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Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies |
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• | The Integrity Funds |
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• | Viking Mutual Funds |
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• | Integrity Managed Portfolios |
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• | Corridor Investors, LLC |
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• | Viking Fund Management, LLC |
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• | Integrity Funds Distributor, LLC |
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• | Integrity Fund Services, LLC |
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Non-affiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies. |
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Integrity Viking Funds does not share with non-affiliates so they can market to you. |
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Joint marketing | A formal agreement between non-affiliated financial companies that together market financial products or services to you. |
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Integrity Viking Funds doesn't jointly market. |
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Integrity Viking Funds includes: |
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• | The Integrity Funds |
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• | Viking Mutual Funds |
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• | Integrity Managed Portfolios |
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:
Integrity Funds Distributor, LLC
PO Box 500
Minot, ND 58702
Phone: 800-276-1262 | Direct inquiries regarding account information to:
Integrity Fund Services, LLC
PO Box 759
Minot, ND 58702
Phone: 800-601-5593 |
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.
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.
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Equity Funds
Williston Basin/Mid-North America Stock Fund (ICPAX/ICPUX)
Integrity Dividend Harvest Fund (IDIVX/IDHCX)
Integrity Growth & Income Fund (IGIAX/IGIUX)
Corporate Bond Fund
Integrity High Income Fund (IHFAX/IHFCX)
State-Specific Tax-Exempt Bond Funds
Viking Tax-Free Fund for North Dakota (VNDFX)
Viking Tax-Free Fund for Montana (VMTTX)
Kansas Municipal Fund (KSMUX)
Maine Municipal Fund (MEMUX)
Nebraska Municipal Fund (NEMUX)
New Hampshire Municipal Fund (NHMUX)
Oklahoma Municipal Fund (OKMUX)
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"), 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 $39,750 for the year ended July 31, 2015 and $39,750 for the year ended July 31, 2014. |
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| (b) | Audit-Related Fees: The aggregate fees billed in each of the last two fiscal years for assurance and related services by Cohen 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 31, 2015 and $0 for the year ended July 31, 2014. |
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| (c) | Tax Fees: The aggregate fees billed in each of the last two fiscal years for professional services rendered by Cohen for tax compliance, tax advice, and tax planning were $12,500 for the year ended July 31, 2015 and $12,500 for the year ended July 31, 2014. 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. |
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| (d) | All Other Fees: The aggregate fees billed in each of the last two fiscal years for products and services provided by Cohen other than the services reported in paragraphs (a) through (c) of this Item: None. |
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| (e) | (1) | Audit Committee Pre-Approval Policies and Procedures |
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| | | | 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. |
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| | (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 |
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| | | | 0% of the services described in paragraphs (b) through (d) of Item 4 were not pre-approved by the audit committee. |
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| (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. |
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| (g) | Non-Audit Fees: None. |
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| (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. |
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| (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. |
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| | (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. |
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| | (3) | Not applicable. |
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| (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 29, 2015
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 29, 2015
By: /s/ Adam Forthun
Adam Forthun
Treasurer
September 29, 2015
