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: January 29, 2016
Item 1. REPORTS TO STOCKHOLDERS.
[Logo]
INTEGRITY MANAGED PORTFOLIOS
Kansas Municipal Fund
Maine Municipal Fund
Nebraska Municipal Fund
New Hampshire Municipal Fund
Oklahoma Municipal Fund
Semi-Annual Report
January 29, 2016
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|
Investment Adviser | Principal Underwriter |
Transfer Agent | Custodian |
| |
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*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, Nebraska Municipal Fund, Oklahoma Municipal Fund, Maine Municipal Fund, and New Hampshire Municipal Fund (each a "Fund", and collectively the "Funds") for the six months ended January 29, 2016. Each Fund's portfolio and related financial statements are presented within for your review.
Economic Recap
Economic activity continued to expand in the third quarter of 2015 as an increase in jobs and a steady unemployment rate indicated that labor market conditions improved once again according to the Federal Open Market Committee's ("FOMC") or ("Committee") statement. Household spending also increased, likely driven by low energy prices. Nevertheless, the FOMC did not believe conditions were appropriate to begin increasing the fed funds rate in the third quarter, citing international factors as a concern. However, as economic activity continued to expand at a moderate pace in the fourth quarter, and given the considerable improvement in labor market conditions and confidence that inflation would rise over the medium term, the Committee decided to raise the target range for the fed funds rate to ¼ to ½ percent. Going forward, the FOMC stated it would assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation. The Committee noted that they expect that economic conditions will evolve in a manner that will warrant only gradual increases in the fed funds rate, in January the Fed maintained the current rate of ¼ to ½ percent.
Municipal Bond Market Recap
Munis bounced back in the third quarter after a tough second quarter. Interest rates fell throughout the yield curve over the quarter. The falling rates were principally driven by uncertainty on the timing of when the FOMC would begin to increase the fed funds rate. The 10-year muni/Treasury yield ratio was sitting at 98.6% at the end of the third quarter, continuing to offer a compelling value for municipal bond investors. The relative cheapness of munis to Treasuries would offer a buffer from volatility going into the fourth quarter.
Returns were again positive for the muni bond market in the fourth quarter, in what was a very stable quarter for muni bonds. Interest rates fell throughout the mid to long end of the yield curve, while rising on the short end of the curve on the back of the FOMC increasing the fed funds rate in December. Issuance for the quarter came in at $71.642 billion nationally, a 25.3% decrease over the same quarter last year. With the notable drop off in supply and demand picking up in the quarter, the muni/Treasury ratio returned closer to its historical average, falling to 84.4% at the end of the year. Fund returns were positive in January as issuance remained light, and uncertainty remained in the market.
Fund Performance and Outlook
We continue to follow a disciplined strategy of investing to maximize tax-exempt income while seeking value in the municipal market. Recent market activity and the possibility of rising rates has lead us to favor high quality, higher coupon (4% to 5%) bonds. As interest rates fluctuate, the portfolio becomes diversified with a broad range of securities that help us achieve a high level of current tax-free income for shareholders. All else equal, the shorter maturity structure and higher coupons will be more defensive, mitigating some negative impact to each Fund's share price should a rise in rates occur.
The Kansas Municipal Fund began the period at $10.87 per share and ended the period at $11.02 per share for a total return of 2.39%*. This compares to the Barclays Capital Municipal Index's return of 2.71%. At the end of the period the average weighted coupon and maturity of the Fund at market value was 4.92% and 13 years, respectively.
The Nebraska Municipal Fund began the period at $10.48 per share and ended the period at $10.67 per share for a total return of 2.61%*. This compares to the Barclays Capital Municipal Index's return of 2.71%. At the end of the period the average weighted coupon and maturity of the Fund at market value was 4.88% and 14 years, respectively.
The Oklahoma Municipal Fund began the period at $11.64 per share and ended the period at $11.93 per share for a total return of 2.89%*. This compares to the Barclays Capital Municipal Index's return of 2.71%. At the end of the period the average weighted coupon and maturity of the Fund at market value was 4.70% and 14 years, respectively.
The Maine Municipal Fund began the period at $10.99 per share and ended the period at $11.20 per share for a total return of 1.99%*. This compares to the Barclays Capital Municipal Index's return of 2.71%. At the end of the period the average weighted coupon and maturity of the Fund at market value was 4.70% and 12 years, respectively.
The New Hampshire Municipal Fund began the period at $10.76 per share and ended the period at $10.94 per share for a total return of 2.23%*. This compares to the Barclays Capital Municipal Index's return of 2.71%. At the end of the period the average weighted coupon and maturity of the Fund at market value was 4.67% and 11 years, respectively.
Income exempt from federal income taxes 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,
The Portfolio Management Team
The views expressed are those of The Portfolio Management Team of 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, 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 1.17%, 1.20%, 1.20%, 1.29%, and 1.73%, 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 0.98%, 0.98%, 0.98%, 0.98%, and 0.98%, respectively. The Fund's investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2016 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.98%, 0.98%, 0.98%, 0.98%, and 0.98%, respectively of average daily net assets. This expense limitation agreement may only be terminated or modified prior to November 29, 2016 with the approval of the Fund's Board of Trustees.
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 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
Kansas Municipal Fund | Kansas Municipal Fund | Barclays Capital Municipal Bond Index | |
7/29/05 | $10,000 | $9,751 | $10,000 |
7/31/06 | $10,439 | $10,179 | $10,255 |
7/31/07 | $10,758 | $10,490 | $10,693 |
7/31/08 | $11,070 | $10,794 | $10,997 |
7/31/09 | $11,519 | $11,232 | $11,559 |
7/30/10 | $12,224 | $11,919 | $12,617 |
7/29/11 | $12,593 | $12,279 | $13,025 |
7/31/12 | $13,609 | $13,270 | $14,393 |
7/31/13 | $13,287 | $12,956 | $14,077 |
7/31/14 | $14,059 | $13,709 | $15,099 |
7/31/15 | $14,485 | $14,124 | $15,636 |
1/29/16 | $14,893 | $14,522 | $16,208 |
Average Annual Total Returns for the periods ended January 29, 2016
1 year | 3 year | 5 year | 10 year | Since Inception | |
Without sales charge | 2.39% | 2.67% | 4.56% | 3.78% | 4.32% |
With sales charge (3.75%) | -0.13% | 1.82% | 4.04% | 3.52% | 4.22% |
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 1.17%. 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 0.98%. The Fund's investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2016 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.98% of average daily net assets. This expense limitation agreement may only be terminated or modified prior to November 29, 2016 with the approval of the Fund's Board of Trustees.
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.
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
Nebraska Municipal Fund | Nebraska Municipal Fund | Barclays Capital Municipal Bond Index | |
7/29/05 | $10,000 | $9,749 | $10,000 |
7/31/06 | $10,490 | $10,227 | $10,255 |
7/31/07 | $10,822 | $10,550 | $10,693 |
7/31/08 | $11,123 | $10,844 | $10,997 |
7/31/09 | $11,536 | $11,246 | $11,559 |
7/30/10 | $12,186 | $11,881 | $12,617 |
7/29/11 | $12,587 | $12,271 | $13,025 |
7/31/12 | $13,623 | $13,281 | $14,393 |
7/31/13 | $13,083 | $12,755 | $14,077 |
7/31/14 | $14,017 | $13,666 | $15,099 |
7/31/15 | $14,513 | $14,150 | $15,636 |
1/29/16 | $14,974 | $14,599 | $16,208 |
Average Annual Total Returns for the periods ended January 29, 2016
1 year | 3 year | 5 year | 10 year | Since Inception | |
Without sales charge | 2.61% | 2.84% | 4.77% | 3.93% | 3.85% |
With sales charge (3.75%) | 0.08% | 1.98% | 4.24% | 3.66% | 3.73% |
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 1.20%. 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 0.98%. The Fund's investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2016 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.98% of average daily net assets. This expense limitation agreement may only be terminated or modified prior to November 29, 2016 with the approval of the Fund's Board of Trustees.
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.
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
Oklahoma Municipal Fund | Oklahoma Municipal Fund | Barclays Capital Municipal Bond Index | |
7/29/05 | $10,000 | $9,752 | $10,000 |
7/31/06 | $10,439 | $10,180 | $10,255 |
7/31/07 | $10,763 | $10,496 | $10,693 |
7/31/08 | $10,871 | $10,601 | $10,997 |
7/31/09 | $11,337 | $11,055 | $11,559 |
7/30/10 | $12,200 | $11,897 | $12,617 |
7/29/11 | $12,706 | $12,391 | $13,025 |
7/31/12 | $13,888 | $13,543 | $14,393 |
7/31/13 | $13,396 | $13,063 | $14,077 |
7/31/14 | $14,255 | $13,902 | $15,099 |
7/31/15 | $14,658 | $14,294 | $15,636 |
1/29/16 | $15,205 | $14,827 | $16,208 |
Average Annual Total Returns for the periods ended January 29, 2016
1 year | 3 year | 5 year | 10 year | Since Inception | |
Without sales charge | 2.89% | 2.75% | 5.01% | 4.14% | 4.15% |
With sales charge (3.75%) | 0.36% | 1.89% | 4.47% | 3.88% | 4.02% |
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 1.20%. 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 0.98%. The Fund's investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2016 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.98% of average daily net assets. This expense limitation agreement may only be terminated or modified prior to November 29, 2016 with the approval of the Fund's Board of Trustees.
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.
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
Maine Municipal Fund | Maine Municipal Fund | Barclays Capital Municipal Bond Index | |
7/29/05 | $10,000 | $9,748 | $10,000 |
7/31/06 | $10,412 | $10,149 | $10,255 |
7/31/07 | $10,713 | $10,443 | $10,693 |
7/31/08 | $11,080 | $10,801 | $10,997 |
7/31/09 | $11,658 | $11,365 | $11,559 |
7/30/10 | $12,298 | $11,989 | $12,617 |
7/29/11 | $12,605 | $12,288 | $13,025 |
7/31/12 | $13,713 | $13,368 | $14,393 |
7/31/13 | $13,389 | $13,052 | $14,077 |
7/31/14 | $14,020 | $13,667 | $15,099 |
7/31/15 | $14,353 | $13,991 | $15,636 |
1/29/16 | $14,812 | $14,439 | $16,208 |
Average Annual Total Returns for the periods ended January 29, 2016
1 year | 3 year | 5 year | 10 year | Since Inception | |
Without sales charge | 1.99% | 2.39% | 4.52% | 3.94% | 4.53% |
With sales charge (3.75%) | -0.58% | 1.53% | 4.00% | 3.67% | 4.42% |
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 1.29%. 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 0.98%. The Fund's investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2016 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.98% of average daily net assets. This expense limitation agreement may only be terminated or modified prior to November 29, 2016 with the approval of the Fund's Board of Trustees.
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.
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
New Hampshire Municipal Fund | New Hampshire Municipal Fund | Barclays Capital Municipal Bond Index | |
7/29/05 | $10,000 | $9,751 | $10,000 |
7/31/06 | $10,376 | $10,118 | $10,255 |
7/31/07 | $10,689 | $10,423 | $10,693 |
7/31/08 | $11,087 | $10,811 | $10,997 |
7/31/09 | $11,601 | $11,313 | $11,559 |
7/30/10 | $12,225 | $11,921 | $12,617 |
7/29/11 | $12,548 | $12,236 | $13,025 |
7/31/12 | $13,432 | $13,098 | $14,393 |
7/31/13 | $13,137 | $12,811 | $14,077 |
7/31/14 | $13,731 | $13,390 | $15,099 |
7/31/15 | $14,068 | $13,718 | $15,636 |
1/29/16 | $14,463 | $14,104 | $16,208 |
Average Annual Total Returns for the periods ended January 29, 2016
1 year | 3 year | 5 year | 10 year | Since Inception | |
Without sales charge | 2.23% | 2.32% | 3.80% | 3.63% | 4.17% |
With sales charge (3.75%) | -0.32% | 1.46% | 3.26% | 3.37% | 4.05% |
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 1.73%. 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 0.98%. The Fund's investment adviser has contractually agreed to waive fees and reimburse expenses through November 29, 2016 so that total annual fund operating expenses after fee waivers and expense reimbursements (excluding taxes, brokerage fees, commissions, extraordinary and non-recurring expenses, and acquired fund fees and expenses) do not exceed 0.98% of average daily net assets. This expense limitation agreement may only be terminated or modified prior to November 29, 2016 with the approval of the Fund's Board of Trustees.
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.
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
PORTFOLIO MARKET SECTORS January 29, 2016 (unaudited)
General Obligation | 44.8% |
Health Care | 22.2% |
Other Revenue | 16.9% |
Utilities | 11.6% |
Education | 1.7% |
Cash Equivalents and Other | 1.5% |
Transportation | 1.0% |
Housing | 0.3% |
| 100.0% |
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 January 29, 2016 (unaudited)
Principal | Fair | |||
MUNICIPAL BONDS (98.5%) | ||||
Education (1.7%) | ||||
KS Dev Fin Auth Sales Tax Rev K-St-Olathe Innovation-L1 5.000% 09/01/39 | $ | 200,000 | $ | 220,606 |
KS Dev Fin Auth Rev Wichita ST Univ Student Hsg 5.000% 06/01/27 | 250,000 | 287,192 | ||
KS Dev Fin Auth Rev (Univ KS Research Cent) 5.000% 02/01/26 | 500,000 | 500,130 | ||
1,007,928 | ||||
General Obligation (44.8%) | ||||
Bourbon Cnty KS USD #234 (Fort Scott) 5.000 % 09/01/27 | 250,000 | 302,227 | ||
Bourbon Cnty KS USD #234 (Fort Scott) 5.000 % 09/01/28 | 250,000 | 298,270 | ||
Bourbon Cnty KS USD #234 (Fort Scott) 5.000% 09/01/29 | 250,000 | 295,427 | ||
Bourbon Cnty KS USD #234 (Fort Scott) 5.000 % 09/01/30 | 250,000 | 294,290 | ||
Bourbon Cnty KS USD #234 (Fort Scott) 5.000 % 09/01/31 | 500,000 | 584,815 | ||
Butler Cnty KS USD #402 5.250% 09/01/21 | 560,000 | 622,496 | ||
Butler Cnty KS USD #402 4.000% 09/01/30 | 250,000 | 282,770 | ||
Butler Cnty KS USD #385 5.000% 09/01/18 | 500,000 | 551,115 | ||
Cowley Cnty KS USD #470 5.500% 09/01/21 | 100,000 | 111,045 | ||
Cowley Cnty KS USD #470 4.750% 09/01/27 | 490,000 | 543,542 | ||
Dickinson Cnty KS USD #473 5.000% 09/01/27 | 325,000 | 366,431 | ||
Dickinson Cnty KS USD #473 4.400% 09/01/29 | 100,000 | 107,755 | ||
Douglas Cnty KS USD #348 Baldwin GO 4.000% 09/01/30 | 250,000 | 286,680 | ||
Douglas Cnty KS USD #491 Eudora 5.500% 09/01/24 | 250,000 | 277,087 | ||
Douglas Cnty KS USD #491 Eudora 5.000% 09/01/23 | 375,000 | 425,929 | ||
Douglas Cnty KS USD #491 Eudora 5.125% 09/01/29 | 250,000 | 282,830 | ||
Ford Cnty KS Sales Tax - Ser A 4.500% 09/01/24 | 500,000 | 508,805 | ||
*Franklin Cnty KS USD #290 5.000% 09/01/40 | 3,000,000 | 3,385,260 | ||
Harvey Cnty KS USD #373 (Newton) 4.000% 09/01/18 | 250,000 | 272,342 | ||
Harvey Cnty KS USD #373 (Newton) 5.000% 09/01/23 | 200,000 | 222,952 | ||
Harvey Cnty KS USD #373 (Newton) 5.000% 09/01/25 | 1,000,000 | 1,114,760 | ||
Jackson Cnty KS USD #336 5.000% 09/01/29 | 250,000 | 286,225 | ||
Jackson Cnty KS USD #336 5.000% 09/01/34 | 250,000 | 281,190 | ||
Johnson Cnty KS USD #231 5.000% 10/01/25 | 250,000 | 303,673 | ||
Johnson Cnty KS USD #233 4.000% 09/01/18 | 150,000 | 164,112 | ||
Junction City KS Ref & Impt 5.000% 09/01/25 | 250,000 | 261,825 | ||
Junction City KS Unlimited GO 4.250% 09/01/21 | 100,000 | 111,285 | ||
Junction City KS Unlimited GO 4.400% 09/01/22 | 100,000 | 111,222 | ||
Junction City KS Unlimited GO 4.500% 09/01/23 | 100,000 | 110,156 | ||
Leavenworth Cnty KS USD #453 GO Impt & Ref 5.250% 03/01/24 | 200,000 | 231,464 | ||
Leavenworth Cnty KS USD #453 4.750% 09/01/25 | 300,000 | 334,935 | ||
*Leavenworth Cnty KS USD #453 GO Impt & Ref 5.125% 03/01/29 | 1,000,000 | 1,156,370 | ||
Leavenworth Cnty KS USD #458 5.000% 09/01/29 | 500,000 | 586,925 | ||
Leavenworth Cnty KS USD #469 Lansing 4.000% 09/01/30 | 320,000 | 347,222 | ||
Wichita Cnty KS USD #467 (Leoti) 5.000% 10/01/18 | 100,000 | 111,512 | ||
Manhattan KS GO 5.000% 11/01/28 | 130,000 | 142,909 | ||
Miami Cnty KD USD #368 5.000% 09/01/27 | 250,000 | 291,065 | ||
Miami Cnty USD #416 Louisburg 5.000% 09/01/20 | 275,000 | 282,598 | ||
Montgomery Cnty KS USD #446 5.000% 09/01/33 | 250,000 | 268,633 | ||
Neosho Cnty KS USD #413 4.000% 09/01/31 | 250,000 | 270,072 | ||
Newton KS Unlimited GO 5.000% 09/01/21 | 100,000 | 115,451 | ||
Newton KS Unlimited GO 4.750% 09/01/29 | 435,000 | 479,509 | ||
Olathe KS GO 4.000% 10/01/19 | 100,000 | 102,414 | ||
Park City KS 5.100% 12/01/20 | 200,000 | 231,358 | ||
Park City KS 5.500% 12/01/24 | 100,000 | 117,184 | ||
Park City KS 6.000% 12/01/29 | 500,000 | 595,325 | ||
Park City KS GO Ref & Impr 5.375% 12/01/25 | 250,000 | 290,242 | ||
Salina KS GO 4.625% 10/01/27 | 200,000 | 210,084 | ||
Sedgwick Cnty KS USD #261 5.000% 11/01/21 | 245,000 | 264,757 | ||
Sedgwick Cnty KS USD #261 5.000% 11/01/21 | 5,000 | 5,407 | ||
Sedgwick Cnty KS USD #262 5.000% 09/01/24 | 250,000 | 277,457 | ||
Sedgwick Cnty KS USD #262 5.000% 09/01/18 | 100,000 | 111,405 | ||
Sedgwick Cnty KS USD #262 5.000% 09/01/28 | 485,000 | 540,581 | ||
Sedgwick Cnty KS USD #262 5.000% 09/01/28 | 15,000 | 16,351 | ||
Sedgwick Cnty KS USD #265 (Goddard) 4.250% 10/01/20 | 750,000 | 815,752 | ||
Sedgwick Cnty KS USD #265 (Goddard) 4.500% 10/01/26 | 250,000 | 267,840 | ||
Sedgwick Cnty KS USD #266 Maize Sch 5.250% 09/01/19 | 225,000 | 248,823 | ||
Sedgwick Cnty KS USD #266 Maize Sch 5.250% 09/01/20 | 360,000 | 401,645 | ||
Seward Cty KS Unlimited GO Hosp Ref & Impt 5.000% 08/01/40 | 500,000 | 558,940 | ||
Seward Cty KS USD #480 GO 5.000% 09/01/34 | 500,000 | 566,545 | ||
Seward Cty KS USD #480 GO 5.000% 09/01/33 | 500,000 | 563,530 | ||
Seward Cty KS USD #480 GO 4.250% 09/01/39 | 500,000 | 531,580 | ||
Wichita KS GO 4.500% 09/01/22 | 150,000 | 159,592 | ||
Wichita KS GO 4.750% 09/01/27 | 180,000 | 190,969 | ||
Wyandotte Cnty KS GO 5.000% 08/01/19 | 150,000 | 153,482 | ||
Wyandotte Cnty KS GO 5.000% 08/01/25 | 250,000 | 264,788 | ||
Wyandotte Cnty KS GO 5.000% 08/01/27 | 500,000 | 528,490 | ||
Wyandotte Cnty KS USD #202 5.250% 09/01/18 | 100,000 | 112,257 | ||
Wyandotte Cnty KS USD #202 5.000% 09/01/25 | 250,000 | 303,135 | ||
25,815,114 | ||||
Health Care (22.2%) | ||||
Ashland KS Public Bldg Commission Revenue 5.000% 09/01/30 | 1,020,000 | 1,093,950 | ||
Ashland KS Public Bldg Commission Revenue 5.000% 09/01/35 | 500,000 | 528,955 | ||
KS Dev Fin Auth Lease Rev Univ KS Tenant 5.000% 06/15/39 | 1,000,000 | 1,083,880 | ||
KS Dev Fin Auth Rev Adventist Health 5.150% 11/15/23 | 250,000 | 283,938 | ||
KS Dev Fin Auth Rev Adventist Health 5.250% 11/15/24 | 250,000 | 284,875 | ||
KS Dev Fin Auth Rev Adventist Health 5.500% 11/15/29 | 100,000 | 114,096 | ||
KS Dev Fin Auth Rev Sisters Leavenworth-Ser A 5.000% 01/01/40 | 500,000 | 544,150 | ||
KS Dev Fin Auth Hlth Facs Rev Hays Med Ctr 5.000% 11/15/22 | 500,000 | 501,410 | ||
KS Dev Fin Auth Hlth Facs Rev Stormont-Vail Healthcare 5.125% 11/15/32 | 410,000 | 436,589 | ||
KS Dev Fin Auth Hlth Facs Rev Stormont-Vail Healthcare 5.125% 11/15/36 | 500,000 | 522,585 | ||
KS Dev Fin Auth Hlth Facs Rev Hays Med Ctr 5.000% 05/15/25 | 250,000 | 273,578 | ||
KS Dev Fin Auth Hlth Facs Rev Hays Med Ctr 5.000% 05/15/35 | 1,000,000 | 1,080,470 | ||
KS Dev Fin Auth Hlth Facs Rev (KU Hlth Sys) 5.000% 03/01/28 | 755,000 | 840,383 | ||
KS Dev Fin Auth Hlth Facs Rev Stormont-Vail Healthcare 4.125% 11/15/27 | 100,000 | 109,325 | ||
Lawrence KS (Mem Hosp) Rev 5.125% 07/01/26 | 500,000 | 505,930 | ||
Lawrence KS (Mem Hosp) Rev 5.125% 07/01/36 | 300,000 | 302,622 | ||
Lincoln Cnty KS Pub Bldg (Lincoln Cnty Hosp) 5.500% 03/01/35 | 500,000 | 535,360 | ||
Manhattan KS Hosp Rev Mercy Health Ctr 5.000% 11/15/23 | 250,000 | 295,245 | ||
Manhattan KS Hosp Rev Mercy Health Ctr 5.000% 11/15/24 | 250,000 | 293,548 | ||
Manhattan KS Hosp Rev Mercy Health Ctr 5.000% 11/15/29 | 500,000 | 569,220 | ||
Olathe KS Hlth Facs Rev Olathe Med Ctr 5.000% 09/01/29 | 500,000 | 523,550 | ||
Olathe KS Hlth Facs Rev Olathe Med Ctr 5.000% 09/01/30 | 250,000 | 274,323 | ||
Olathe KS Hlth Facs Rev Olathe Med Ctr 4.000% 09/01/28 | 250,000 | 267,033 | ||
Olathe KS Hlth Facs Rev Olathe Med Ctr 4.000% 09/01/30 | 445,000 | 472,510 | ||
Univ KS Hosp Auth 5.000% 09/01/35 | 500,000 | 576,765 | ||
Univ KS Hosp Auth 5.000% 09/01/26 | 60,000 | 61,622 | ||
Univ KS Hosp Auth 5.000% 09/01/26 | 40,000 | 40,781 | ||
Wichita KS Hosp Rev (Via Christi Hlth Sys) 5.000% 11/15/29 | 300,000 | 367,857 | ||
12,784,550 | ||||
Housing (0.3%) | ||||
Kansas City KS Mtg Rev Rev 5.900% 11/01/27 | 10,000 | 10,013 | ||
KS Dev Fin Auth Rev (Sec. 8) Rev Ref. 6.400% 01/01/24 | 180,000 | 180,797 | ||
190,810 | ||||
Other Revenue (16.9%) | ||||
Butler Cnty KS Pub Bldg Impt Rev 4.500% 10/01/21 | 160,000 | 160,259 | ||
Dodge City KS Sales Tax Rev 5.000% 06/01/21 | 310,000 | 349,187 | ||
Dodge City KS Sales Tax Rev 4.400% 06/01/25 | 350,000 | 380,415 | ||
Dodge City KS Sales Tax Rev 4.500% 06/01/28 | 100,000 | 107,796 | ||
*Dodge City KS Sales Tax Rev 5.250% 06/01/31 | 1,000,000 | 1,119,680 | ||
KS Dev Fin Auth Rev KS Projs-Ser B 4.125% 05/01/31 | 500,000 | 530,300 | ||
KS Dev Fin Auth Rev Athletic Facs (K-St Athletics Inc) 5.000% 07/01/32 | 250,000 | 261,248 | ||
KS Dev Fin Auth Rev (KS St Proj) Unrefunded 5.000% 10/01/17 | 20,000 | 20,016 | ||
KS Dev Fin Auth Rev (KS St Proj) 5.000% 11/01/34 | 500,000 | 547,575 | ||
KS Dev Fin Auth Rev (Dept Admin) 5.000% 11/01/25 | 250,000 | 258,820 | ||
KS Dev Fin Auth Rev (KS St Proj) 4.100% 05/01/19 | 250,000 | 252,360 | ||
KS Dev Fin Auth Rev (KS St Proj) 5.250% 11/01/25 | 350,000 | 378,077 | ||
KS Dev Fin Auth Rev (KS St Proj) 5.000% 05/01/35 | 250,000 | 270,943 | ||
Lincoln Cnty KS Pub Bldg (Lincoln Cnty Hosp) 5.000% 03/01/28 | 250,000 | 267,615 | ||
Manhattan KS Sales Tax Rev Downtown Redev 5.250% 12/01/26 | 80,000 | 87,204 | ||
Manhattan KS Sales Oblig Rev North Proj Area - Downtown A 5.000% 12/01/26 | 500,000 | 536,760 | ||
Manhattan KS Sales Tax Rev 4.500% 12/01/25 | 500,000 | 555,400 | ||
*Manhattan KS Sales Tax Rev 5.000% 12/01/32 | 1,000,000 | 1,136,100 | ||
Neosho Cnty KS Sales Tax Rev 4.000% 10/01/23 | 500,000 | 548,365 | ||
Topeka KS Pub Bldg Commn Lease Rev Social & Rehab Proj 5.000% 06/01/22 | 255,000 | 283,241 | ||
Washinton Cnty KS Pub Bldg Com Rev Law Enforcement Ctr & Hosp Proj 4.000% 09/01/28 | 600,000 | 660,750 | ||
Washinton Cnty KS Pub Bldg Com Rev Law Enforcement Ctr & Hosp Proj 5.000% 09/01/32 | 500,000 | 564,490 | ||
Washinton Cnty KS Pub Bldg Com Rev Law Enforcement Ctr & Hosp Proj 5.000% 09/01/37 | 400,000 | 445,336 | ||
9,721,937 | ||||
Transportation (1.0%) | ||||
KS Dept of Transportation Highway Rev. 5.000% 09/01/35 | 250,000 | 303,955 | ||
KS Dev Fin Auth Rev (Road Revolving Fund) 4.625% 10/01/26 | 250,000 | 270,630 | ||
574,585 | ||||
Utilities (11.6%) | ||||
Burlington KS PCR (Gas & Elec) 4.850% 06/01/31 | 250,000 | 252,388 | ||
*KS Municipal Energy Agency (Jameson Energy Project) Rev 5.750% 07/01/38 | 1,000,000 | 1,173,360 | ||
KS Pwr Pool Elec Util Rev 4.500% 12/01/28 | 500,000 | 535,300 | ||
KS Pwr Pool Elec Util Rev 5.000% 12/01/31 | 750,000 | 809,100 | ||
Kansas Power Pool Elec Util Rev Dogwood Fac-Ser A 4.000% 12/01/31 | 500,000 | 527,155 | ||
Wichita KS Wtr & Swr Rev 5.000% 10/01/23 | 300,000 | 311,703 | ||
Wyandotte Cnty KS Govt Util Sys Rev 5.000% 09/01/24 | 200,000 | 221,790 | ||
Wyandotte Cnty KS Govt Util Sys Rev 5.000% 09/01/29 | 500,000 | 549,550 | ||
Wyandotte Cnty KS Govt Util Sys Rev 5.000% 09/01/36 | 250,000 | 278,355 | ||
*Wyandotte Cnty KS Govt Util Sys Rev 5.000% 09/01/32 | 1,250,000 | 1,427,350 | ||
#Wyandotte Cnty KS Govt Util Sys Rev Impt-Ser A 5.000% 09/01/35 | 500,000 | 578,110 | ||
6,664,161 | ||||
TOTAL MUNICIPAL BONDS (COST: $53,023,203) | $ | 56,759,085 | ||
SHORT-TERM SECURITIES (1.1%) | Shares | |||
^Wells Fargo Advantage National Tax-Free Money Market 0.010% | 661,048 | $ | 661,048 | |
TOTAL INVESTMENTS IN SECURITIES (COST: $53,684,251) (99.6%) | $ | 57,420,133 | ||
OTHER ASSETS LESS LIABILITIES (0.4%) | 214,144 | |||
NET ASSETS (100.0%) | $ | 57,634,277 |
* | 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 January 29, 2016. |
|
|
# | When-issued purchase as of January 29, 2016. |
The accompanying notes are an integral part of these financial statements.
NEBRASKA MUNICIPAL FUND
PORTFOLIO MARKET SECTORS January 29, 2016 (unaudited)
Utilities | 31.4% |
Education | 25.2% |
General Obligation | 17.4% |
Health Care | 10.8% |
Other Revenue | 8.4% |
Cash Equivalents and Other | 3.4% |
Housing | 2.0% |
Transportation | 1.4% |
| 100.0% |
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 January 29, 2016 (unaudited)
Principal | Fair | |||
MUNICIPAL BONDS (96.6%) | ||||
Education (25.2%) | ||||
Douglas Cnty NE Edl Facs Rev Creighton Univ 5.500% 07/01/30 | $ | 350,000 | $ | 402,654 |
*Douglas Cnty NE Edl Facs Rev Creighton Univ 5.875% 07/01/40 | 1,500,000 | 1,732,245 | ||
Douglas Cnty NE Hosp Auth #2 (Boys Town Proj) 4.750% 09/01/28 | 200,000 | 214,630 | ||
Lincoln NE Ed & Fac Rev (Wesleyan Univ) 4.000% 04/01/32 | 750,000 | 788,550 | ||
NE St Colleges Student Fees (Wayne St College) 4.000% 07/01/30 | 200,000 | 200,388 | ||
NE St Colleges Student Fees (Wayne St College) 3.250% 07/01/36 | 500,000 | 489,960 | ||
NE Edl Fin Auth Rev Ref - Clarkson College Proj 5.050% 09/01/30 | 250,000 | 285,757 | ||
NE Elem & Secondary Sch Auth Ed Facs Rev 4.750% 09/01/28 | 250,000 | 269,605 | ||
Univ of NE Fac Corp Deferred Maintenance 5.000% 07/15/20 | 500,000 | 510,830 | ||
Univ of NE Brd of Regt (Sutudent Fees & Fac) 5.000% 07/01/35 | 1,500,000 | 1,789,275 | ||
Univ of NE Brd of Regt (Sutudent Fees & Fac) 5.000% 05/15/35 | 500,000 | 593,285 | ||
Univ of NE Rev 5.000% 05/15/33 | 250,000 | 303,392 | ||
Univ of NE Brd of Regt Student Facs 5.000% 05/15/32 | 250,000 | 264,575 | ||
Univ of NE Brd of Regt (Hlth & Rec Proj) 5.000% 05/15/33 | 600,000 | 642,462 | ||
Univ of NE Rev Lincoln Student 4.000% 07/01/24 | 250,000 | 269,663 | ||
Univ of NE Omaha Student Hsg Proj 4.500% 05/15/30 | 250,000 | 275,120 | ||
Univ of NE Omaha Student Hsg Proj 5.000% 05/15/35 | 275,000 | 311,267 | ||
Univ of NE (Univ of NE - Lincoln Student Fees) Rev 5.000% 07/01/42 | 1,000,000 | 1,112,100 | ||
Univ of NE Lincoln Student Facs 5.000% 07/01/38 | 250,000 |
| 282,820 | |
| 10,738,578 | |||
General Obligation (17.4%) | ||||
Douglas Cnty NE SD #010 4.000% 12/15/34 | 300,000 | 325,638 | ||
Hall Cnty NE Ref GO 4.000% 12/15/29 | 250,000 | 256,313 | ||
Hall Cnty NE Sch Dist #2 Grand Is GO 5.000% 12/15/33 | 500,000 | 592,225 | ||
Hall Cnty NE Sch Dist #2 Grand Is GO 5.000% 12/15/39 | 500,000 | 579,785 | ||
Lincoln-Lancaster Cnty Neb Pub Bldg Lease Rev 4.000% 10/15/30 | 100,000 | 102,383 | ||
*Omaha NE (Convention Center) GO 5.250% 04/01/27 | 1,000,000 | 1,319,540 | ||
Omaha NE Various Purpose 4.250% 10/15/26 | 500,000 | 513,655 | ||
Omaha NE Unlimited GO 5.000% 10/15/25 | 250,000 | 284,033 | ||
Sarpy Cnty Sch Dist #27 Papillion-LA Vista GO 5.000% 12/01/28 | 250,000 | 276,468 | ||
Papio Missouri River NE Natural Res Dist GO 4.000% 12/15/24 | 250,000 | 262,620 | ||
Papio Missouri River NE Natural Res Dist GO 5.000% 12/15/26 | 250,000 | 274,353 | ||
Papio Missouri River NE Ref-Flood Protn & Wtr Quality Enhancement 4.000% 12/15/30 | 1,000,000 | 1,065,230 | ||
Ralston NE Arena GO 4.500% 09/15/31 | 500,000 | 509,690 | ||
Sarpy Cnty NE Sch Dist #37 Ref & Sch Bldg 5.000% 12/15/35 | 250,000 | 295,390 | ||
Scotts Bluff Cnty NE Sch Dist #32 GO 5.000% 12/01/31 | 250,000 | 301,613 | ||
#Douglas CNTY SCH DIST #59 Bennington 3.000% 12/15/35 | 500,000 |
| 485,110 | |
| 7,444,046 | |||
Health Care (10.8%) | ||||
Adams Cnty NE Hosp Auth #1 Hosp Rev (Mary Lanning Mem Hosp) 5.250% 12/15/33 | 250,000 | 276,365 | ||
Douglas Cnty NE Hosp Auth #002 (NE Med Ctr) 5.000% 11/15/16 | 250,000 | 257,605 | ||
Douglas Cnty NE Hosp Auth #002 Immanuel Group 5.500% 01/01/30 | 500,000 | 562,210 | ||
Douglas Cnty NE Hosp Methodist Health 5.500% 11/01/38 | 795,000 | 890,813 | ||
Douglas Cnty NE Hosp Methodist Health 5.500% 11/01/38 | 415,000 | 465,016 | ||
*Lancaster Cnty NE Hosp Auth #1 (BryanLGH Med Ctr Proj) 4.750% 06/01/21 | 1,000,000 | 1,010,890 | ||
Lincoln Cnty NE Hosp Auth (Great Plains Regl Med Cntr) 5.000% 11/01/23 | 250,000 | 289,895 | ||
Lincoln Cnty NE Hosp Auth (Great Plains Regl Med Cntr) 5.000% 11/01/24 | 250,000 | 288,575 | ||
Lincoln Cnty NE Hosp Auth (Great Plains Regl Med Cntr) 5.000% 11/01/25 | 250,000 | 288,215 | ||
Lincoln Cnty NE Hosp Auth (Great Plains Regl Med Cntr) 5.000% 11/01/32 | 250,000 |
| 277,945 | |
| 4,607,529 | |||
Housing (2.0%) | ||||
Lancaster Cnty NE Hosp Auth #1 Immanuel Oblig Group 5.500% 01/01/30 | 250,000 | 281,105 | ||
Sarpy Cnty NE Hosp Auth #1 Immanuel Oblig Group 5.500% 01/01/30 | 500,000 |
| 562,210 | |
| 843,315 | |||
Other Revenue (8.4%) | ||||
Lincoln NE West Haymarket Joint Pub Agy GO Fac 5.000% 12/15/42 | 750,000 | 833,723 | ||
NE Coop Republican Platte Enhancement Project River 5.125% 12/15/33 | 250,000 | 273,473 | ||
NE Coop Republican Platte Enhancement Project River 5.000% 12/15/38 | 160,000 | 170,336 | ||
NE Coop Republican Platte Enhancement Project River 3.850% 12/15/30 | 300,000 | 305,064 | ||
Omaha Convention Hotel Corp 5.000% 02/01/35 | 500,000 | 510,930 | ||
Omaha Pub Fac Corp Lease Rev Omaha Tech & Forestry Equip 4.000% 11/15/31 | 115,000 | 121,110 | ||
*Omaha NE Special Tax Rev 5.000% 02/01/27 | 1,000,000 |
| 1,175,740 | |
Upper Republican Natural Resource District 4.000% 12/15/24 | 200,000 |
| 211,868 | |
| 3,602,244 | |||
Transportation (1.4%) |
| |||
Lincoln NE Pkg Rev 5.500% 08/15/31 | 500,000 |
| 577,500 | |
Utilities (31.4%) | ||||
*Central Plains Energy Proj Rev 5.000% 09/01/27 | 1,000,000 | 1,150,670 | ||
Central Plains Energy Proj Rev 5.250% 09/01/37 | 500,000 | 562,805 | ||
Central Plains Energy Proj Rev 5.000% 09/01/42 | 500,000 | 539,630 | ||
Grand Island NE Sewer Sys Rev 5.000% 09/15/26 | 250,000 | 298,973 | ||
Hastings NE Comb Utility Rev Ref 4.000% 10/15/32 | 500,000 | 543,945 | ||
*Lincoln NE Elec Syst Rev 5.000% 09/01/37 | 1,000,000 | 1,142,800 | ||
Lincoln NE San Swr Rev 4.500% 06/15/29 | 250,000 | 258,398 | ||
Lincoln NE Solid Waste Mgmt Rev 4.000% 08/01/25 | 275,000 | 316,657 | ||
Lincoln NE Solid Waste Mgmt Rev 4.000% 08/01/27 | 400,000 | 454,584 | ||
Lincoln NE Wtr Rev 4.000% 08/15/25 | 250,000 | 272,080 | ||
Lincoln NE Wtr Rev 4.500% 08/15/34 | 250,000 | 269,970 | ||
NE Metro Util Dist Omaha Wtr Rev 4.000% 12/15/24 | 750,000 | 842,160 | ||
NE Metro Util Dist Omaha Wtr Rev 4.000% 12/15/26 | 250,000 | 280,687 | ||
Muni Energy Agy of NE Pwr Supply Sys Rev 5.125% 04/01/24 | 195,000 | 217,796 | ||
Muni Energy Agy of NE Pwr Supply Sys Rev 5.000% 04/01/30 | 500,000 | 569,110 | ||
Muni Energy Agy of NE Pwr Supply Sys Rev 5.000% 04/01/32 | 100,000 | 111,674 | ||
NE Pub Pwr Dist Rev 5.000% 01/01/41 | 250,000 | 288,275 | ||
NE Pub Pwr Dist Rev 5.000% 01/01/28 | 250,000 | 294,570 | ||
NE Pub Pwr Dist Rev 5.000% 01/01/30 | 500,000 | 570,975 | ||
Omaha NE Metro Util Wtr Dist Rev 4.375% 12/01/26 | 400,000 | 412,852 | ||
Omaha NE Pub Pwr Dist Elec Sys Rev 5.250% 02/01/23 | 250,000 | 273,558 | ||
Omaha NE Pub Pwr Dist Elec Sys Rev 5.500% 02/01/33 | 100,000 | 109,921 | ||
Omaha NE Pub Pwr Dist Elec Sys Rev 6.200% 02/01/17 | 270,000 | 280,594 | ||
Omaha Sanitation & Sewer 5.000% 11/15/29 | 250,000 | 304,315 | ||
Omaha Sanitation & Sewer 5.000% 11/15/30 | 250,000 | 303,157 | ||
Omaha Sanitation & Sewer 5.000% 11/15/31 | 500,000 | 602,340 | ||
Omaha NE Pub Pwr Dist Sep Elec Sys Rev 5.000% 02/01/32 | 250,000 | 296,127 | ||
NE Pub Pwr Generation Agy Whelan Energy 5.000% 01/01/24 | 250,000 | 260,312 | ||
NE Pub Pwr Generation Agy Whelan Energy 5.000% 01/01/27 | 250,000 | 260,312 | ||
NE Pub Pwr Generation Agy Whelan Energy 5.000% 01/01/32 | 780,000 | 811,363 | ||
NE Pub Pwr Generation Agy Whelan Energy 5.000% 01/01/32 | 220,000 | 226,604 | ||
Southern Pub Pwr Dist 5.000% 12/15/23 | 250,000 |
| 280,835 | |
| 13,408,049 | |||
TOTAL MUNICIPAL BONDS (COST: $38,893,923) | $ | 41,221,261 | ||
SHORT-TERM SECURITIES (4.4%) | Shares | |||
^Wells Fargo Advantage National Tax-Free Money Market 0.010% | 1,855,705 | $ | 1,855,705 | |
TOTAL INVESTMENTS IN SECURITIES (COST: $40,749,628) (101.0%) | $ | 43,076,966 | ||
OTHER ASSETS LESS LIABILITIES (-1.0%) | (418,548) | |||
NET ASSETS (100.0%) | $ | 42,658,418 |
* | 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 January 29, 2016. |
|
|
# | When-issued purchase as of January 29, 2016. |
The accompanying notes are an integral part of these financial statements.
OKLAHOMA MUNICIPAL FUND
PORTFOLIO MARKET SECTORS January 29, 2016 (unaudited)
Utilities | 31.6% |
Other Revenue | 25.4% |
Education | 20.2% |
Transportation | 9.9% |
Health Care | 4.6% |
General Obligation | 4.2% |
Cash Equivalents and Other | 3.2% |
Housing | 0.9% |
| 100.0% |
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 January 29, 2016 (unaudited)
Principal | Fair | |||
MUNICIPAL BONDS (96.8%) | ||||
Education (20.2%) | ||||
OK Agric & Mech Colleges Rev (OK St Univ) 5.000% 07/01/39 | $ | 140,000 | $ | 154,454 |
OK Agric & Mech Colleges Rev (OK St Univ) 4.400% 08/01/39 | 630,000 | 675,278 | ||
*OK Community College Student Fac Rev 4.375% 07/01/30 | 750,000 | 810,022 | ||
OK Dev Fin Auth Lease Rev Master St Higher Ed 4.400% 12/01/29 | 250,000 | 271,428 | ||
OK Dev Fin Auth Lease Rev (OK St Higher Ed Master Lease) 4.500% 06/01/26 | 250,000 | 252,470 | ||
OK Dev Fin Auth Lease Rev Higher Ed Master Ppty 5.000% 06/01/39 | 500,000 | 576,185 | ||
OK Dev Fin Auth Lease Rev Higher Ed Master Ppty 5.000% 06/01/29 | 500,000 | 605,670 | ||
OK Dev Fin Auth Lease Rev Higher Ed Master Ppty 5.000% 06/01/34 | 500,000 | 593,260 | ||
OK Dev Fin Auth Lease Rev Higher Ed Master Ppty 5.000% 06/01/39 | 500,000 | 577,385 | ||
OK Dev Fin Auth Rev East Central Univ 4.000% 08/01/30 | 280,000 | 307,264 | ||
OK Dev Fin Auth Rev East Central Univ 4.000% 08/01/31 | 290,000 | 316,625 | ||
OK Dev Fin Auth Rev East Central Univ 4.000% 08/01/32 | 305,000 | 331,440 | ||
OK Dev Fin Auth Rev East Central Univ 4.000% 08/01/33 | 315,000 | 341,069 | ||
Brd of Regt (OK Univ Science Ctr) 5.000% 07/01/36 | 1,000,000 | 1,068,830 | ||
Univ of OK Student Hsg (Cameron Univ) Rev 5.500% 07/01/23 | 250,000 | 250,657 | ||
Univ of OK Rev 5.000% 07/01/37 | 290,000 | 330,562 | ||
Univ of OK Rev Gen-Ser C 5.000% 07/01/36 | 500,000 | 581,675 | ||
Univ of OK Rev Gen-Ser C 4.000% 07/01/40 | 500,000 | 522,250 | ||
Univ of OK Rev Gen-Ser C 5.000% 07/01/38 | 500,000 |
| 577,305 | |
| 9,143,829 | |||
General Obligation (4.2%) | ||||
Broken Arrow GO Series A 4.125% 08/01/31 | 180,000 | 196,891 | ||
Oklahoma City OK 4.250% 03/01/22 | 110,000 | 110,375 | ||
Oklahoma City OK 5.000% 03/01/27 | 400,000 | 431,276 | ||
*Oklahoma City OK 4.000% 03/01/24 | 1,000,000 |
| 1,162,160 | |
| 1,900,702 | |||
Health Care (4.6%) | ||||
OK St Dev Fin Auth Hlth Sys Rev Ref Sef A 5.000% 08/15/25 | 350,000 | 437,528 | ||
OK St Dev Fin Auth Hlth Sys Rev Ref Sef A 5.000% 08/15/29 | 250,000 | 300,915 | ||
OK St Dev Fin Auth Hlth Sys Rev Ref Sef A 4.000% 08/15/38 | 250,000 | 261,042 | ||
OK Dev Fin Auth Rev (St John Hlth Sys) 5.000% 02/15/42 | 250,000 | 274,112 | ||
OK Dev Fin Auth Rev (St John Hlth Sys) 5.000% 02/15/37 | 15,000 | 15,723 | ||
OK Dev Fin Auth Rev (St John Hlth Sys) 5.000% 02/15/37 | 485,000 | 497,760 | ||
Tulsa Cnty Ind Auth Health Fac 4.600% 02/01/35 | 250,000 |
| 268,508 | |
| 2,055,588 | |||
Housing (0.9%) | ||||
OK Hsg Fin Agy Single Family Mtg Rev AMT 5.050% 09/01/23 | 190,000 | 192,016 | ||
OK Hsg Fin Agy Single Family Mtg Rev AMT 5.150% 09/01/29 | 95,000 | 95,806 | ||
OK Hsg Fin Agy Single Family Mtg Rev AMT 5.200% 09/01/32 | 95,000 | 95,901 | ||
OK Hsg Fin Agy Single Family Mtg Rev AMT 5.100% 03/01/17 | 20,000 | 20,307 | ||
OK Hsg Fin Agy Single Family Mtg Rev AMT 5.100% 09/01/17 | 15,000 |
| 15,278 | |
| 419,308 | |||
Other Revenue (25.4%) | ||||
Collinsville OK Mun Auth Sales Tax Rev 5.000% 03/01/35 | 275,000 | 321,736 | ||
Collinsville OK Mun Auth Sales Tax Rev 5.000% 03/01/40 | 250,000 | 292,488 | ||
Oklahoma City OK Economic Dev Trust 5.000% 03/01/32 | 250,000 | 280,615 | ||
Oklahoma City OK Economic Dev Trust 5.000% 03/01/34 | 500,000 | 558,925 | ||
Oklahoma City OK Economic Dev Trust 5.000% 03/01/33 | 250,000 | 280,090 | ||
Oklahoma City OK Pub Ppty Auth Hotel Tax Rev 4.500% 10/01/31 | 155,000 | 161,042 | ||
Oklahoma City OK Pub Ppty Auth Hotel Tax Rev 5.000% 10/01/27 | 350,000 | 422,615 | ||
Oklahoma City OK Pub Ppty Auth Hotel Tax Rev 5.000% 10/01/28 | 400,000 | 480,208 | ||
Oklahoma City OK Pub Ppty Auth Hotel Tax Rev 5.000% 10/01/29 | 625,000 | 745,419 | ||
Oklahoma City OK Pub Ppty Auth Hotel Tax Rev 5.000% 10/01/36 | 230,000 | 265,087 | ||
Oklahoma City OK Pub Ppty Auth Hotel Tax Rev 5.000% 10/01/39 | 835,000 | 949,938 | ||
OK Cap Impt Auth (Supreme Court Proj) 4.500% 07/01/26 | 500,000 | 508,530 | ||
OK Cap Impt Auth (OK St Bureau of Investigation) 4.375% 07/01/22 | 100,000 | 101,589 | ||
OK Cap Impt Auth (OK St Bureau of Investigation) 4.375% 07/01/23 | 100,000 | 101,589 | ||
OK Cap Impt Auth (OK St Bureau of Investigation) 4.500% 07/01/24 | 200,000 | 203,412 | ||
OK State Water Resources Board Rev. 5.000% 10/01/29 | 250,000 | 302,778 | ||
OK State Water Resources Loan Program Rev. 5.000% 10/01/33 | 500,000 | 601,060 | ||
Okmulgee Cnty OK Govtl Bldg Auth Sales Tax Rev 4.250% 12/01/35 | 500,000 | 533,855 | ||
Pawnee Cnty OK Pub Programs Auth Sales Tax Rev 4.875% 02/01/30 | 145,000 | 161,382 | ||
*Rogers Cnty OK Indl Dev Auth Cap Impt Rev 4.900% 04/01/35 | 500,000 | 556,720 | ||
Sand Springs OK Muni Auth Capital IMPT Rev 4.250% 01/01/35 | 250,000 | 265,295 | ||
Tahlequah OK Pub Facs Auth Sales Tax Rev 4.000% 04/01/23 | 550,000 | 616,973 | ||
Tulsa Cnty OK Indl Auth Cap Impts Rev 3.000% 09/01/27 | 245,000 | 250,463 | ||
Tulsa Cnty OK Pub Facs Auth Capital Impt Rev Ref 3.000% 11/01/22 | 500,000 | 536,810 | ||
Tulsa Airport Impt Rev 5.000% 06/01/23 | 420,000 | 479,350 | ||
Tulsa Airport Impt Rev 5.000% 06/01/24 | 230,000 | 260,355 | ||
Tulsa Airport Impt Rev 5.250% 06/01/25 | 245,000 | 278,986 | ||
Tulsa Airport Impt Rev 5.250% 06/01/26 | 360,000 | 408,395 | ||
Tulsa OK Pkg Auth Pkg Rev 4.000% 07/01/25 | 500,000 |
| 547,080 | |
| 11,472,785 | |||
Transportation (9.9%) | ||||
Oklahoma City OK Airport Tr Jr Lien Ref Series B 5.000% 07/01/19 | 250,000 | 266,228 | ||
Oklahoma City OK Airport Tr Jr Lien Ref Series B 5.000% 07/01/21 | 250,000 | 265,325 | ||
OK St Cap Impt Auth 4.000% 10/01/24 | 1,000,000 | 1,123,410 | ||
OK St Cap Impt Auth 4.000% 10/01/25 | 1,000,000 | 1,119,210 | ||
OK St Turnpike Auth Rev 5.000% 01/01/28 | 250,000 | 287,618 | ||
OK St Turnpike Auth Rev 4.000% 01/01/31 | 500,000 | 540,940 | ||
OK St Turnpike Auth Rev 5.000% 01/01/23 | 500,000 |
| 595,665 | |
OK St Turnpike Auth Rev 5.000% 01/01/30 | 250,000 |
| 285,580 | |
| 4,483,976 | |||
Utilities (31.6%) | ||||
Claremore OK (Public Works Util Rev.) 4.000% 07/01/19 | 300,000 | 329,937 | ||
Clinton OK Public Works Auth Utility 4.000% 12/01/34 | 750,000 | 806,505 | ||
Clinton OK Public Works Auth Utility 4.000% 12/01/39 | 500,000 | 522,645 | ||
Coweta Pub Works Util Rev 5.000% 08/01/34 | 100,000 | 110,053 | ||
Glenpool Util Rev 5.100% 12/01/35 | 250,000 | 286,662 | ||
Grand River Dam Auth Rev 5.000% 06/01/27 | 1,000,000 | 1,092,870 | ||
Grand River Dam Auth Rev 4.800% 06/01/33 | 200,000 | 214,072 | ||
*Grand River Dam Auth Rev 5.250% 06/01/40 | 2,000,000 | 2,297,500 | ||
*Midwest City Municipal Auth Cap Impt Rev 5.000 % 03/01/25 | 2,000,000 | 2,344,840 | ||
Oklahoma City OK Wtr Util Tr Wtr & Swr Sys Rev 4.000% 07/01/34 | 250,000 | 261,962 | ||
Oklahoma City OK Wtr Util Tr Wtr & Swr Sys Rev 5.000% 07/01/31 | 250,000 | 288,440 | ||
Oklahoma City OK Wtr Util Tr Wtr & Swr Sys Rev 5.000% 07/01/34 | 100,000 | 120,208 | ||
Oklahoma City OK Wtr Util Tr Wtr & Swr Sys Rev 4.000% 07/01/39 | 175,000 | 187,173 | ||
*OK Mun Pwr Auth Rev 5.750% 01/01/24 | 1,900,000 | 2,190,016 | ||
OK Wtr Resources Brd 5.000% 04/01/28 | 500,000 | 561,695 | ||
OK Wtr Resources Brd 5.000% 04/01/32 | 140,000 | 162,166 | ||
Oklahoma St Wtr Resource Brd Rev 5.000% 04/01/23 | 100,000 | 122,412 | ||
Oklahoma St Wtr Resource Brd Rev 5.000% 04/01/24 | 150,000 | 182,457 | ||
Oklahoma St Wtr Resource Brd Rev 4.000% 04/01/25 | 150,000 | 169,578 | ||
Sallisaw OK Mun Auth Rev 4.450% 01/01/28 | 100,000 | 108,048 | ||
Sand Springs OK Muni Auth Util Sys Rev 4.000% 11/01/27 | 200,000 | 213,894 | ||
Sapulpa OK Mun Auth Util Sys Rev 5.000% 04/01/28 | 750,000 | 875,310 | ||
Seminole OK Utilities Auth Sales Tax Rev 3.000% 09/01/24 | 100,000 | 104,109 | ||
Seminole OK Utilities Auth Sales Tax Rev 3.150% 09/01/25 | 380,000 | 396,956 | ||
Seminole OK Utilities Auth Sales Tax Rev 3.300% 09/01/26 | 315,000 |
| 328,753 | |
| 14,278,261 | |||
TOTAL MUNICIPAL BONDS (COST: $41,168,683) | $ | 43,754,449 | ||
SHORT-TERM SECURITIES (2.0%) | Shares | |||
^Wells Fargo Advantage National Tax-Free Money Market 0.010% | 890,148 | $ | 890,148 | |
TOTAL INVESTMENTS IN SECURITIES (COST: $42,058,831) (98.8%) | $ | 44,644,597 | ||
OTHER ASSETS LESS LIABILITIES (1.2%) | 560,351 | |||
NET ASSETS (100.0%) | $ | 45,204,948 |
* | 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 January 29, 2016. |
The accompanying notes are an integral part of these financial statements.
MAINE MUNICIPAL FUND
PORTFOLIO MARKET SECTORS January 29, 2016 (unaudited)
Health Care | 20.2% |
Education | 19.6% |
General Obligation | 19.5% |
Transportation | 11.0% |
Housing | 10.3% |
Cash Equivalents and Other | 7.2% |
Other Revenue | 6.5% |
Utilities | 5.7% |
| 100.0% |
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 January 29, 2016 (unaudited)
Principal | Fair | |||
MUNICIPAL BONDS (92.8%) | ||||
Education (19.6%) | ||||
ME Edl Ln Auth Student Ln Rev 5.875% 12/01/39 | $ | 130,000 | $ | 142,470 |
ME Edl Ln Auth Student Ln Rev 4.450% 12/01/25 | 100,000 | 109,402 | ||
*ME Health & Higher Ed Facs Auth Rev Ser A-Bowdoin College 5.125% 07/01/39 | 715,000 | 783,047 | ||
ME Health & Higher Ed Facs Auth Rev 5.000% 07/01/23 | 110,000 | 112,132 | ||
ME Health & Higher Ed Facs Auth Rev 5.000% 07/01/23 | 25,000 | 25,518 | ||
ME Health & Higher Ed Facs Auth Rev 5.000% 07/01/39 | 500,000 | 576,295 | ||
ME Health & Higher Ed Facs Auth Rev 5.000% 07/01/34 | 250,000 | 295,922 | ||
ME Health & Higher Ed Facs Auth Rev 5.000% 07/01/37 | 185,000 | 195,608 | ||
ME Health & Higher Ed Facs Auth Rev 4.750% 07/01/31 | 250,000 | 276,965 | ||
ME Health & Higher Ed Facs Auth Rev Colby Clg 4.000% 07/01/24 | 270,000 | 306,264 | ||
Regl Sch Unit No 1 ME Lower Kennebec Region Sch Unit 5.000% 02/01/26 | 100,000 | 114,116 | ||
Univ of ME Sys Rev 4.625% 03/01/29 | 100,000 | 104,571 | ||
Univ of ME Sys Rev 4.750% 03/01/37 | 545,000 | 570,653 | ||
Univ of ME Sys Rev 4.750% 03/01/37 | 5,000 |
| 5,152 | |
| 3,618,115 | |||
General Obligation (19.5%) | ||||
Auburn, ME GO 4.500% 09/01/22 | 100,000 | 117,682 | ||
Bangor ME 4.000% 09/01/24 | 155,000 | 165,929 | ||
Falmouth ME GO 4.250% 11/15/31 | 200,000 | 220,200 | ||
Gorham, ME Unlimited GO 4.000% 10/01/23 | 100,000 | 113,638 | ||
Gray ME Unlimited GO 4.000% 10/15/26 | 280,000 | 304,660 | ||
Gray ME Unlimited GO 4.000% 10/15/27 | 280,000 | 303,786 | ||
Lewiston ME GO 3.000% 01/15/25 | 185,000 | 192,354 | ||
State of Maine General Obligation 4.000% 06/01/20 | 150,000 | 171,735 | ||
ME St Hsg Auth Energy Recovery Fd 5.000% 06/15/24 | 250,000 | 281,975 | ||
Portland ME 4.250% 05/01/29 | 150,000 | 162,642 | ||
Portland ME 4.125% 10/01/29 | 100,000 | 107,963 | ||
Portland ME UNLTD GO 5.000% 08/01/21 | 125,000 | 153,103 | ||
Portland ME 5.000% 08/01/22 | 125,000 | 150,892 | ||
Saco ME GO 4.000% 04/01/28 | 100,000 | 108,444 | ||
Scarborough, ME GO 4.000% 11/01/28 | 100,000 | 111,573 | ||
ME Sch Adminstrative Dist # 51 4.250% 10/15/29 | 250,000 | 271,005 | ||
ME Sch Adminstrative Dist # 51 4.000% 10/15/29 | 100,000 | 115,361 | ||
Waterville ME GO 4.000% 07/01/25 | 135,000 | 151,533 | ||
Waterville ME GO 3.000% 04/01/25 | 250,000 | 270,260 | ||
Wells-Ogunquit Community School Dist. 4.000% 11/01/24 | 100,000 | 119,165 | ||
3,593,900 | ||||
Health Care (20.2%) | ||||
ME Health & Higher Ed Facs Auth Rev 5.000% 07/01/20 | 50,000 | 58,426 | ||
ME Health & Higher Ed Facs Auth Rev 5.000% 07/01/20 | 130,000 | 150,558 | ||
ME Health & Higher Ed Facs Auth Rev 4.500% 07/01/31 | 10,000 | 11,465 | ||
ME Health & Higher Ed Facs Auth Rev 5.250% 07/01/23 | 10,000 | 11,793 | ||
ME Health & Higher Ed Facs Auth Rev 4.500% 07/01/31 | 190,000 | 202,660 | ||
ME Health & Higher Ed Facs Auth Rev 5.250% 07/01/23 | 190,000 | 219,028 | ||
ME Health & Higher Ed Facs Auth Rev 5.000% 07/01/22 | 15,000 | 16,015 | ||
*ME Health & Higher Ed Facs Auth Rev 5.000% 07/01/39 | 610,000 | 664,924 | ||
ME Health & Higher Ed Facs Auth Rev 5.000% 07/01/26 | 115,000 | 128,211 | ||
ME Health & Higher Ed Facs Auth Rev 5.000% 07/01/20 | 250,000 | 288,488 | ||
ME Health & Higher Ed Facs Auth Rev 5.000% 07/01/40 | 250,000 | 273,455 | ||
ME Health & Higher Ed Facs Auth Rev 5.000% 07/01/22 | 235,000 | 248,914 | ||
ME Health & Higher Ed Facs Auth Rev 5.000% 07/01/23 | 250,000 | 307,240 | ||
ME Health & Higher Ed Facs Auth Rev 5.000% 07/01/30 | 500,000 | 576,185 | ||
ME Health & Higher Ed Facs Auth Rev 5.000% 07/01/31 | 500,000 |
| 571,775 | |
| 3,729,137 | |||
Housing (10.3%) | ||||
*ME Health & Higher Ed Facs Auth Rev 5.000% 07/01/29 | 1,000,000 | 1,152,840 | ||
ME St Hsg Auth Mtg Pur 4.000% 11/15/24 | 45,000 | 47,546 | ||
ME St Hsg Auth Mtg Pur 4.000% 11/15/35 | 435,000 | 443,726 | ||
ME St Hsg Auth Mtg Pur Ref 4.000% 11/15/30 | 250,000 |
| 254,687 | |
| 1,898,799 | |||
Other Revenue (6.5%) | ||||
ME Governmental Facs Auth Ser A 4.000% 10/01/24 | 200,000 | 220,244 | ||
Maine Municipal Bond Bank 4.000% 11/01/38 | 125,000 | 132,468 | ||
Maine Municipal Bond Bank 5.000% 11/01/25 | 125,000 | 150,239 | ||
Maine Municipal Bond Bank 5.000% 11/01/27 | 100,000 | 123,842 | ||
ME Mun Bd Bk (Swr & Wtr) Rev Unrefunded 4.900% 11/01/24 | 5,000 | 5,010 | ||
*PR Pub Fin Corp Comwlth Appropriations 5.375% 06/01/18 | 515,000 |
| 564,177 | |
| 1,195,980 | |||
Transportation (11.0%) | ||||
*ME Mun Bd Bk Transn Infrastructure Rev 5.000% 09/01/24 | 1,000,000 | 1,143,140 | ||
Maine St Tpk Auth Spl Oblig 4.000% 07/01/32 | 250,000 | 265,398 | ||
Portland ME Airport Rev 5.250% 01/01/35 | 250,000 | 272,635 | ||
Portland ME Airport Rev 5.000% 07/01/22 | 100,000 | 117,768 | ||
Portland ME Airport Rev 5.000% 07/01/23 | 100,000 | 118,860 | ||
Portland ME Airport Rev 5.000% 07/01/24 | 100,000 |
| 117,374 | |
| 2,035,175 | |||
Utilities (5.7%) | ||||
*Kennebunk ME Pwr & Light Dist 5.000% 08/01/22 | 500,000 | 527,255 | ||
Portland ME Wtr Dist Rev 4.250% 11/01/27 | 500,000 |
| 520,045 | |
| 1,047,300 | |||
TOTAL MUNICIPAL BONDS (COST: $16,164,599) | $ | 17,118,406 | ||
SHORT-TERM SECURITIES (6.6%) | Shares | |||
^Wells Fargo Advantage National Tax-Free Money Market Fund 0.010% | 1,205,587 | $ | 1,205,587 | |
TOTAL INVESTMENTS IN SECURITIES (COST: $17,370,186) (99.4%) | $ | 18,323,993 | ||
OTHER ASSETS LESS LIABILITIES (0.6%) | 114,516 | |||
NET ASSETS (100.0%) | $ | 18,438,509 |
* | 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 January 29, 2016. |
The accompanying notes are an integral part of these financial statements.
NEW HAMPSHIRE MUNICIPAL FUND
PORTFOLIO MARKET SECTORS January 29, 2016 (unaudited)
General Obligation | 37.7% |
Health Care | 19.7% |
Education | 15.2% |
Cash Equivalents and Other | 9.5% |
Housing | 7.9% |
Utilities | 4.6% |
Other Revenue | 3.0% |
Transportation | 2.4% |
| 100% |
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 January 29, 2016 (unaudited)
Principal | Fair | |||
MUNICIPAL BONDS (90.5%) | ||||
Education (15.2%) | ||||
NH Health & Ed Facs Auth Rev Ref-Univ New Hampshire 5.000% 07/01/28 | $ | 175,000 | $ | 215,686 |
NH Health & Ed Facs Auth Rev (Pinkerton Academy) 4.625% 06/01/30 | 50,000 | 54,456 | ||
NH Health & Ed Facs Auth Rev (Pinkerton Academy) 4.875% 06/01/35 | 70,000 | 77,146 | ||
*NH Health & Ed Facs Auth Rev Southern NH Univ 5.000% 01/01/17 | 200,000 | 206,012 | ||
NH Health & Ed Facs Auth Rev Southern NH Univ 5.000% 01/01/20 | 100,000 | 113,088 | ||
NH Health & Ed Facs Auth Rev Dartmouth College 5.250% 06/01/39 | 100,000 |
| 112,525 | |
| 778,913 | |||
General Obligation (37.7%) | ||||
Dover NH GO Ref 5.000% 6/15/25 | 100,000 | 129,040 | ||
Dover NH GO 4.000% 6/15/28 | 100,000 | 110,504 | ||
Hillsborough NH GO 4.000% 11/01/20 | 100,000 | 100,205 | ||
Hillsborough NH GO 4.000% 11/01/21 | 100,000 | 100,225 | ||
Hooksett, NH Sch Dist GO 5.000% 07/15/22 | 100,000 | 122,559 | ||
Merrimack Cnty NH GO 4.250% 12/01/19 | 100,000 | 106,992 | ||
Merrimack Cnty NH GO 4.500% 12/01/27 | 100,000 | 107,412 | ||
*NH Mun Bd Bk 2009 Series D 4.000% 07/15/25 | 175,000 | 189,238 | ||
New Hampshire State G.O. Cap Impt-Ser B 5.000% 12/01/28 | 75,000 | 93,934 | ||
NH St Cap Impt GO 4.750% 03/01/27 | 100,000 | 108,797 | ||
Portsmouth NH GO Cap Impt 4.000% 12/01/30 | 100,000 | 109,024 | ||
*Rochester NH GO Ser A 3.000% 03/1/32 | 130,000 | 136,177 | ||
Rochester NH GO Ser C 3.000% 10/15/35 | 100,000 | 102,068 | ||
Salem NH School District GO 5.000% 11/15/24 | 100,000 | 126,037 | ||
Salem NH School District GO 4.000% 12/01/27 | 250,000 |
| 286,185 | |
| 1,928,397 | |||
Health Care (19.7%) | ||||
NH Health & Ed Facs Auth Rev Wentworth Douglas Hosp 5.500% 01/01/26 | 100,000 | 115,310 | ||
NH Health & Ed Facs Auth Rev Conway Hosp 5.250% 06/01/16 | 100,000 | 101,023 | ||
NH Health & Ed Facs Auth Rev Southern NH Med Ctr 5.250% 10/01/23 | 100,000 | 106,189 | ||
NH Health & Ed Facs Auth Rev Healthcare Sys-Covenant Hlth-B 5.000% 07/01/24 | 100,000 | 107,956 | ||
NH Health & Ed Facs Auth Rev Cheshire Med Ctr 4.000% 07/01/39 | 100,000 | 102,497 | ||
*NH Health & Ed Facs Auth Rev Covenant Health 5.000% 07/01/31 | 150,000 | 159,363 | ||
NH Health & Ed Facs Auth Rev Catholic Med Center 5.000% 07/01/24 | 100,000 | 114,262 | ||
*NH Health & Ed Facs Auth Rev Concord Hosp-Ser A 5.000% 10/01/26 | 100,000 | 116,068 | ||
NH St Health & Ed Fac Covenant Hlth Sys 5.000% 07/01/42 | 75,000 |
| 81,355 | |
| 1,004,023 | |||
Housing (7.9%) | ||||
NH St Hsg Fin Auth Single Family Mtg Rev 5.350% 07/01/40 | 75,000 | 76,139 | ||
NH St Hsg Fin Auth Single Family Mtg Rev 4.625% 07/01/25 | 140,000 | 144,827 | ||
NH St Hsg Fin Auth Single Family Mtg Rev 4.875% 07/01/28 | 70,000 | 73,924 | ||
NH St Hsg Fin Auth Multi Family Hsg 5.200% 07/01/31 | 100,000 |
| 106,388 | |
| 401,278 | |||
Other Revenue (3.0%) |
| |||
NH St Business Fin Auth Solid Waste Disp Rev - Waste Mgmt Inc 5.200% 05/01/27 | 150,000 |
| 152,684 | |
| ||||
Transportation (2.4%) |
| |||
NH St Turnpike Sys Rev 5.000% 08/01/25 | 100,000 |
| 120,306 | |
| ||||
Utilities (4.6%) |
| |||
NH St Bus Fin Auth Wtr Fac Rev AMT Pennuchuck Wtr Wks 5.000% 01/01/29 | 100,000 |
| 115,957 | |
NH St Bus Fin Auth Wtr Fac Rev AMT Pennuchuck Wtr Wks 5.000% 01/01/30 | 100,000 |
| 117,235 | |
| 233,192 | |||
TOTAL MUNICIPAL BONDS (COST: $4,426,801) | $ | 4,618,793 | ||
SHORT-TERM SECURITIES (5.2%) | Shares | |||
^Wells Fargo Advantage National Tax-Free Money Market Fund 0.010% | 267,820 | $ | 267,820 | |
TOTAL INVESTMENTS IN SECURITIES (COST: $4,694,621) (95.7%) | $ | 4,886,613 | ||
OTHER ASSETS LESS LIABILITIES (4.3%) | 222,233 | |||
NET ASSETS (100.0%) | $ | 5,108,846 |
* | 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 January 29, 2016. |
The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS
Statements of Assets and Liabilities January 29, 2016 (unaudited)
Kansas | Nebraska | Oklahoma | Maine | New Hampshire | |||||||||||
ASSETS | |||||||||||||||
Investments in securities, at cost | $ | 53,684,251 | $ | 40,749,628 | $ | 42,058,831 | $ | 17,370,186 | $ | 4,694,621 | |||||
Investments in securities, at fair value | $ | 57,420,133 | $ | 43,076,966 | $ | 44,644,597 | $ | 18,323,993 | $ | 4,886,613 | |||||
Receivable for Fund shares sold | 15,000 | 23,299 | 185,985 | 0 | 200,000 | ||||||||||
Accrued dividends receivable | 3 | 14 | 5 | 9 | 1 | ||||||||||
Accrued interest receivable | 891,930 | 401,500 | 453,385 | 141,091 | 30,475 | ||||||||||
Prepaid expenses | 4,415 | 7,070 | 3,776 | 1,502 | 568 | ||||||||||
Total assets | $ | 58,331,481 | $ | 43,508,849 | $ | 45,287,748 | $ | 18,466,595 | $ | 5,117,657 | |||||
LIABILITIES | |||||||||||||||
Payable for securities purchased | $ | 576,695 | $ | 774,430 | $ | 0 | $ | 0 | $ | 0 | |||||
Payable for Fund shares redeemed | 26,926 | 8,063 | 7,124 | 3,096 | 19 | ||||||||||
Dividends payable | 38,881 | 28,047 | 31,217 | 7,562 | 3,261 | ||||||||||
Trustees' fees payable | 385 | 280 | 296 | 122 | 32 | ||||||||||
Payable to affiliates | 42,332 | 31,362 | 36,018 | 13,299 | 3,393 | ||||||||||
Accrued expenses | 11,985 | 8,249 | 8,145 | 4,007 | 2,106 | ||||||||||
Total liabilities | $ | 697,204 | $ | 850,431 | $ | 82,800 | $ | 28,086 | $ | 8,811 | |||||
NET ASSETS | $ | 57,634,277 | $ | 42,658,418 | $ | 45,204,948 | $ | 18,438,509 | $ | 5,108,846 | |||||
NET ASSETS ARE REPRESENTED BY: |
| ||||||||||||||
Capital stock outstanding, no par value, unlimited shares authorized | $ | 54,116,965 | $ | 40,591,742 | $ | 43,043,761 | $ | 17,479,179 | $ | 4,928,509 | |||||
Accumulated net realized gain (loss) on investments | (224,125) | (263,165) | (425,497) | (8,412) | (22,001) | ||||||||||
Accumulated undistributed net investment income (loss) | 5,555 | 2,503 | 918 | 13,935 | 10,346 | ||||||||||
Unrealized appreciation (depreciation) on investments | 3,735,882 | 2,327,338 | 2,585,766 | 953,807 | 191,992 | ||||||||||
NET ASSETS | $ | 57,634,277 | $ | 42,658,418 | $ | 45,204,948 | $ | 18,438,509 | $ | 5,108,846 | |||||
Shares outstanding | 5,231,826 | 3,999,568 | 3,789,325 | 1,646,667 | 466,782 | ||||||||||
Net asset value per share* | $ | 11.02 | $ | 10.67 | $ | 11.93 | $ | 11.20 | $ | 10.94 | |||||
Public offering price (sales charge of 2.50%) | $ | 11.30 | $ | 10.94 | $ | 12.24 | $ | 11.49 | $ | 11.22 |
* | 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.
FINANCIAL STATEMENTS
Statements of Operations For the six months ended January 29, 2016 (unaudited)
Kansas | Nebraska | Oklahoma | Maine | New Hampshire | |||||||||||
INVESTMENT INCOME | |||||||||||||||
Interest | $ | 1,103,358 | $ | 753,699 | $ | 736,356 | $ | 303,187 | $ | 80,864 | |||||
Dividends | 67 | 40 | 59 | 34 | 10 | ||||||||||
Total investment income | $ | 1,103,425 | $ | 753,739 | $ | 736,415 | $ | 303,221 | $ | 80,874 | |||||
EXPENSES | |||||||||||||||
Investment advisory fees | $ | 144,205 | $ | 102,942 | $ | 108,051 | $ | 44,166 | $ | 12,395 | |||||
Distribution (12b-1) fees | 72,102 | 51,471 | 54,026 | 22,083 | 6,198 | ||||||||||
Transfer agent fees | 40,377 | 28,824 | 30,254 | 12,367 | 3,471 | ||||||||||
Administrative service fees | 52,311 | 40,757 | 42,188 | 24,300 | 15,404 | ||||||||||
Professional fees | 6,978 | 5,252 | 5,360 | 2,968 | 1,729 | ||||||||||
Reports to shareholders | 1,190 | 802 | 722 | 389 | 136 | ||||||||||
License, fees, and registrations | 1,695 | 3,100 | 1,788 | 1,231 | 589 | ||||||||||
Audit fees | 6,890 | 4,963 | 5,195 | 2,127 | 645 | ||||||||||
Trustees' fees | 2,084 | 1,484 | 1,555 | 636 | 180 | ||||||||||
Transfer agent out-of-pockets | 2,492 | 1,642 | 1,560 | 753 | 242 | ||||||||||
Custodian fees | 3,166 | 2,249 | 2,355 | 1,099 | 522 | ||||||||||
Legal fees | 4,197 | 2,995 | 3,140 | 1,066 | 365 | ||||||||||
Insurance expense | 574 | 396 | 399 | 170 | 49 | ||||||||||
Total expenses | $ | 338,261 | $ | 246,877 | $ | 256,593 | $ | 113,355 | $ | 41,925 | |||||
Less expenses waived or reimbursed | (55,620) | (45,112) | (44,812) | (26,789) | (17,630) | ||||||||||
Total net expenses | $ | 282,641 | $ | 201,765 | $ | 211,781 | $ | 86,566 | $ | 24,295 | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INVESTMENT INCOME (LOSS) | $ | 820,784 | $ | 551,974 | $ | 524,634 | $ | 216,655 | $ | 56,579 | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | |||||||||||||||
Net realized gain (loss) from investment transactions | $ | 38,420 | $ | 6,554 | $ | (15,400) | $ | 30 | $ | 201 | |||||
Net change in unrealized appreciation (depreciation) on investments | 736,453 | 725,703 | 1,089,892 | 348,534 | 83,351 | ||||||||||
Net realized and unrealized gain (loss) on investments | $ | 774,873 | $ | 732,257 | $ | 1,074,492 | $ | 348,564 | $ | 83,552 | |||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,595,657 | $ | 1,284,231 | $ | 1,599,126 | $ | 565,219 | $ | 140,131 |
The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS
Statements of Changes in Net Assets For the six months ended January 29, 2016 (unaudited)
Kansas | Nebraska | Oklahoma | Maine | New Hampshire | |||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||||||
Net investment income (loss) | $ | 820,784 | $ | 551,974 | $ | 524,634 | $ | 216,655 | $ | 56,579 | |||||
Net realized gain (loss) from investment transactions |
| 38,420 |
| 6,554 |
| (15,400) |
| 30 | 201 | ||||||
Net change in unrealized appreciation (depreciation) on investments |
| 736,453 |
| 725,703 |
| 1,089,892 |
| 348,534 | 83,351 | ||||||
Net increase (decrease) in net assets resulting from operations | $ | 1,595,657 | $ | 1,284,231 | $ | 1,599,126 | $ | 565,219 | $ | 140,131 | |||||
DISTRIBUTIONS TO SHAREHOLDERS FROM | |||||||||||||||
Net investment income | $ | (820,340) | $ | (551,804) | $ | (524,577) | $ | (215,873) | $ | (55,681) | |||||
Net realized gain on investments | 0 | 0 | 0 | (8,442) | 0 | ||||||||||
Total distributions | $ | (820,340) | $ | (551,804) | $ | (524,577) | $ | (224,315) | $ | (55,681) | |||||
CAPITAL SHARE TRANSACTIONS | |||||||||||||||
Proceeds from sale of shares | $ | 1,552,223 | $ | 2,090,976 | $ | 3,109,777 | $ | 874,667 | $ | 453,858 | |||||
Proceeds from reinvested dividends | 583,567 | 371,515 | 336,568 | 176,416 | 34,358 | ||||||||||
Cost of shares redeemed | (3,855,086) | (1,725,731) | (1,743,434) | (428,270) | (628,039) | ||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | $ | (1,719,296) | $ | 736,760 | $ | 1,702,911 | $ | 622,813 | $ | (139,823) | |||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | $ | (943,979) | $ | 1,469,187 | $ | 2,777,460 | $ | 963,717 | $ | (55,373) | |||||
NET ASSETS, BEGINNING OF PERIOD | $ | 58,578,256 | 41,189,231 | $ | 42,427,488 | $ | 17,474,792 | $ | 5,164,219 | ||||||
NET ASSETS, END OF PERIOD | $ | 57,634,277 | $ | 42,658,418 | $ | 45,204,948 | $ | 18,438,509 | $ | 5,108,846 | |||||
Accumulated undistributed net investment income | $ | 5,555 | $ | 2,503 | $ | 918 | $ | 13,935 | $ | 10,346 |
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, 2015 (unaudited)
Kansas | Nebraska | Oklahoma | Maine | New Hampshire | |||||||||||
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.
NOTES TO FINANCIAL STATEMENTS (unaudited)
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.
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services – Investment Companies.
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 the Funds' administrative services agent, 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.
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.
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.
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 January 29, 2016:
Level 1 | Level 2 | Level 3 | Total | ||||||||||
KS Muni Fund | Short-Term Securities | $ | 661,048 | $ | 0 | $ | 0 | $ | 661,048 | ||||
Municipal Bonds | 0 | 56,759,085 | 0 | 56,759,085 | |||||||||
Total | $ | 661,048 | $ | 56,759,085 | $ | 0 | $ | 57,420,133 | |||||
NE Muni Fund | Short-Term Securities | $ | 1,855,705 | $ | 0 | $ | 0 | $ | 1,855,705 | ||||
Municipal Bonds | 0 | 41,221,261 | 0 | 41,221,261 | |||||||||
Total | $ | 1,855,705 | $ | 41,221,261 | $ | 0 | $ | 43,076,966 | |||||
OK Muni Fund | Short-Term Securities | $ | 890,148 | $ | 0 | $ | 0 | $ | 890,148 | ||||
Municipal Bonds | 0 | 43,754,449 | 0 | 43,754,449 | |||||||||
Total | $ | 890,148 | $ | 43,754,449 | $ | 0 | $ | 44,644,597 | |||||
ME Muni Fund | Short-Term Securities | $ | 1,205,587 | $ | 0 | $ | 0 | $ | 1,205,587 | ||||
Municipal Bonds | 0 | 17,118,406 | 0 | 17,118,406 | |||||||||
Total | $ | 1,205,587 | $ | 17,118,406 | $ | 0 | $ | 18,323,993 | |||||
NH Muni Fund | Short-Term Securities | $ | 267,820 | $ | 0 | $ | 0 | $ | 267,820 | ||||
Municipal Bonds | 0 | 4,618,793 | 0 | 4,618,793 | |||||||||
Total | $ | 267,820 | $ | 4,618,793 | $ | 0 | $ | 4,886,613 |
See Schedule of Investments to view by type of obligation. The Funds did not hold any Level 3 assets during the six months ended January 29, 2016. There were no transfers into or out of Level 1 or Level 2 during the six months ended January 29, 2016. 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 six months ended January 29, 2016.
NOTE 4: Investment Transactions
Purchases and sales of investment securities (excluding short-term securities) for the six months ended January 29, 2016, were as follows:
KS Muni | NE Muni | OK Muni | ME Muni | NH Muni | ||||||||||
Fund | Fund | Fund | Fund | Fund | ||||||||||
Purchases | $ | 3,248,035 | $ | 2,455,837 | $ | 4,332,954 | $ | 631,100 | $ | 706,111 | ||||
Sales | $ | 4,874,856 | $ | 2,292,228 | $ | 1,025,110 | $ | 195,000 | $ | 789,919 |
NOTE 5: Capital Share Transactions
Transactions in capital shares were as follows:
KS Muni | NE Muni | OK Muni | ME Muni | NH Muni | ||||||
Six Months Ended 1/29/16: | Fund | Fund | Fund | Fund | Fund | |||||
Shares sold | 142,477 | 197,816 | 264,566 | 78,966 | 41,716 | |||||
Shares issued on reinvestment of dividends | 53,442 | 35,210 | 28,612 | 15,929 | 3,170 | |||||
Shares redeemed | (353,309) | (163,786) | (148,412) | (38,777) | (58,250) | |||||
Net increase (decrease) | (157,390) | 69,240 | 144,766 | 56,118 | (13,364) | |||||
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 |
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 |
|
| NE Muni |
|
| OK Muni |
|
| NH Muni |
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 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, 2016 so that the net annual operating expenses do not exceed 0.98%. After November 29, 2016, 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.
Six Months Ended 1/29/16 | Payable at 1/29/16 | |||||||
Advisory Fees* | Advisory Fees Waived | Advisory Fees* | ||||||
KS Muni Fund | $ | 119,248 | $ | 24,957 | $ | 18,882 | ||
NE Muni Fund | $ | 82,992 | $ | 19,950 | $ | 13,431 | ||
OK Muni Fund | $ | 88,177 | $ | 19,874 | $ | 14,452 | ||
ME Muni Fund | $ | 33,114 | $ | 11,052 | $ | 5,519 | ||
NH Muni Fund | $ | 6,794 | $ | 5,601 | $ | 992 |
* | After waivers. |
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.
Six Months Ended 1/29/16 | Payable at 1/29/16 | ||||||||||||||
Sales | Distribution | Distribution | Sales | Distribution | |||||||||||
Charges | CDSC | Fees* | Fees Waived | Charges | CDSC | Fees* | |||||||||
KS Muni Fund | $ | 34,722 | $ | 0 | $ | 59,623 | $ | 12,479 | $ | 612 | $ | 0 | $ | 9,441 | |
NE Muni Fund | $ | 40,495 | $ | 0 | $ | 41,496 | $ | 9,975 | $ | 1,251 | $ | 0 | $ | 6,715 | |
OK Muni Fund | $ | 43,768 | $ | 0 | $ | 44,089 | $ | 9,937 | $ | 3,781 | $ | 0 | $ | 7,226 | |
ME Muni Fund | $ | 12,893 | $ | 0 | $ | 16,557 | $ | 5,526 | $ | 103 | $ | 0 | $ | 2,760 | |
NH Muni Fund | $ | 5,223 | $ | 0 | $ | 3,398 | $ | 2,800 | $ | 224 | $ | 0 | $ | 496 |
* | After waivers. |
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.
Six Months Ended 1/29/16 | Payable at 1/29/16 | ||||||||||||
Transfer | Transfer | Admin. | Admin. | Transfer | Admin. | ||||||||
Agency | Agency | Service | Service | Agency | Service | ||||||||
Fees* | Fees Waived | Fees* | Fees Waived | Fees* | Fees* | ||||||||
KS Muni Fund | $ | 34,947 | $ | 7,922 | $ | 42,049 | $ | 10,262 | $ | 6,538 | $ | 6,859 | |
NE Muni Fund | $ | 24,175 | $ | 6,291 | $ | 31,861 | $ | 8,896 | $ | 4,678 | $ | 5,287 | |
OK Muni Fund | $ | 25,551 | $ | 6,263 | $ | 33,450 | $ | 8,738 | $ | 4,962 | $ | 5,597 | |
ME Muni Fund | $ | 9,678 | $ | 3,442 | $ | 17,531 | $ | 6,769 | $ | 1,926 | $ | 2,991 | |
NH Muni Fund | $ | 2,016 | $ | 1,697 | $ | 7,872 | $ | 7,532 | $ | 410 | $ | 1,271 |
* | After waivers. |
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
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for the periods indicated
Six Months | Year | Year | Year | Year | Year | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.87 | $ | 10.85 | $ | 10.56 | $ | 11.12 | $ | 10.64 | $ | 10.70 | |||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.15 | $ | 0.31 | $ | 0.32 | $ | 0.30 | $ | 0.37 | $ | 0.37 | |||||
Net realized and unrealized gain (loss) on investments3 | 0.15 | 0.02 | 0.29 | (0.56) | 0.48 | (0.06) | |||||||||||
Total from investment operations | $ | 0.30 | $ | 0.33 | $ | 0.61 | $ | (0.26) | $ | 0.85 | $ | 0.31 | |||||
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Distributions from net investment income | $ | (0.15) | $ | (0.31) | $ | (0.32) | $ | (0.30) | $ | (0.37) | $ | (0.37) | |||||
NET ASSET VALUE, END OF PERIOD | $ | 11.02 | $ | 10.87 | $ | 10.85 | $ | 10.56 | $ | 11.12 | $ | 10.64 | |||||
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Total Return (excludes any applicable sales charge) | 2.82%# | 3.03% | 5.81% | (2.37%) | 8.07% | 3.02% | |||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $57,634 | $58,578 | $59,516 | $64,405 | $48,093 | $45,175 | |||||||||||
Ratio of expenses to average net assets after waivers1,2* | 0.98%^ | 0.98% | 1.01% | 1.08% | 1.07% | 1.07% | |||||||||||
Ratio of expenses to average net assets before waivers2 | 1.17%^ | 1.16% | 1.16% | 1.17% | 1.18% | 1.30% | |||||||||||
Ratio of net investment income to average net assets1,2* | 2.84%^ | 2.80% | 2.95% | 2.75% | 3.36% | 3.54% | |||||||||||
Portfolio turnover rate | 5.74% | 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. |
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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. |
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^ | Annualized. |
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+ | Unaudited. |
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# | Not Annualized. |
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
Six Months | Year | Year | Year | Year | Year | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.48 | $ | 10.40 | $ | 9.99 | $ | 10.69 | $ | 10.20 | $ | 10.22 | |||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.14 | $ | 0.29 | $ | 0.29 | $ | 0.29 | $ | 0.34 | $ | 0.35 | |||||
Net realized and unrealized gain (loss) on investments3 | 0.19 | 0.08 | 0.41 | (0.70) | 0.49 | (0.02) | |||||||||||
Total from investment operations | $ | 0.33 | $ | 0.37 | $ | 0.70 | $ | (0.41) | $ | 0.83 | $ | 0.33 | |||||
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Distributions from net investment income | $ | (0.14) | $ | (0.29) | $ | (0.29) | $ | (0.29) | $ | (0.34) | $ | (0.35) | |||||
NET ASSET VALUE, END OF PERIOD | $ | 10.67 | $ | 10.48 | $ | 10.40 | $ | 9.99 | $ | 10.69 | $ | 10.20 | |||||
Total Return (excludes any applicable sales charge) | 3.18%# | 3.54% | 7.14% | (3.96%) | 8.23% | 3.29% | |||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $42,658 | $41,189 | $39,734 | $41,633 | $46,038 | $35,808 | |||||||||||
Ratio of expenses to average net assets after waivers1,2* | 0.98%^ | 0.98% | 1.01% | 1.08% | 1.07% | 1.07% | |||||||||||
Ratio of expenses to average net assets before waivers2 | 1.20%^ | 1.19% | 1.20% | 1.20% | 1.21% | 1.33% | |||||||||||
Ratio of net investment income to average net assets1,2* | 2.67%^ | 2.72% | 2.89% | 2.72% | 3.22% | 3.44% | |||||||||||
Portfolio turnover rate | 5.68% | 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 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. |
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^ | Annualized. |
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+ | Unaudited. |
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# | Not Annualized. |
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
Six Months | Year | Year | Year | Year | Year | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 11.64 | $ | 11.60 | $ | 11.20 | $ | 11.93 | $ | 11.24 | $ | 11.19 | |||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.14 | $ | 0.29 | $ | 0.31 | $ | 0.32 | $ | 0.34 | $ | 0.40 | |||||
Net realized and unrealized gain (loss) on investments3 | 0.29 | 0.04 | 0.40 | (0.73) | 0.69 | 0.05 | |||||||||||
Total from investment operations | $ | 0.43 | $ | 0.33 | $ | 0.71 | $ | (0.41) | $ | 1.03 | $ | 0.45 | |||||
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Distributions from net investment income | $ | (0.14) | $ | (0.29) | $ | (0.31) | $ | (0.32) | $ | (0.34) | $ | (0.40) | |||||
NET ASSET VALUE, END OF PERIOD | $ | 11.93 | $ | 11.64 | $ | 11.60 | $ | 11.20 | $ | 11.93 | $ | 11.24 | |||||
Total Return (excludes any applicable sales charge) | 3.73%# | 2.82% | 6.42% | (3.54%) | 9.30% | 4.15% | |||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $45,205 | $42,427 | $38,795 | $41,551 | $43,253 | $33,156 | |||||||||||
Ratio of expenses to average net assets after waivers1,2* | 0.98%^ | 0.98% | 1.01% | 1.08% | 1.07% | 1.07% | |||||||||||
Ratio of expenses to average net assets before waivers2 | 1.19%^ | 1.18% | 1.19% | 1.18% | 1.19% | 1.32% | |||||||||||
Ratio of net investment income to average net assets1,2* | 2.42%^ | 2.44% | 2.72% | 2.70% | 2.93% | 3.62% | |||||||||||
Portfolio turnover rate | 2.42% | 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. |
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^ | Annualized. |
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+ | Unaudited. |
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# | Not Annualized. |
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
Six Months | Year | Year | Year | Year | Year | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.99 | $ | 11.00 | $ | 10.79 | $ | 11.36 | $ | 10.77 | $ | 10.85 | |||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.13 | $ | 0.27 | $ | 0.29 | $ | 0.31 | $ | 0.34 | $ | 0.34 | |||||
Net realized and unrealized gain (loss) on investments3 | 0.22 | (0.01) | 0.21 | (0.57) | 0.59 | (0.08) | |||||||||||
Total from investment operations | $ | 0.35 | $ | 0.26 | $ | 0.50 | $ | (0.26) | $ | 0.93 | $ | 0.26 | |||||
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Less Distributions: | |||||||||||||||||
Distributions from net investment income | $ | (0.13) | $ | (0.27) | $ | (0.29) | $ | (0.31) | $ | (0.34) | $ | (0.34) | |||||
Distributions from net realized gains | (0.01) | 0.00 | 0.00 | 0.00 |
| 0.00 | 0.00 | ||||||||||
Returns of Capital | 0.00 | 0.00 | 0.00 | 0.00 |
| 0.00 | 0.00 | ||||||||||
Total distributions | $ | (0.14) | $ | (0.27) | $ | (0.29) | $ | (0.31) | $ | (0.34) | $ | (0.34) | |||||
NET ASSET VALUE, END OF PERIOD | $ | 11.20 | $ | 10.99 | $ | 11.00 | $ | 10.79 | $ | 11.3 | $ | 10.77 | |||||
Total Return (excludes any applicable sales charge) | 3.20%# | 2.37% | 4.72% | (2.37%) | 8.79% | 2.50% | |||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $18,439 | $17,475 | $17,451 | $17,702 | $18,084 | $16,176 | |||||||||||
Ratio of expenses to average net assets after waivers1,2* | 0.98%^ | 0.98% | 1.01% | 1.08% | 1.07% | 1.07% | |||||||||||
Ratio of expenses to average net assets before waivers2 | 1.28%^ | 1.28% | 1.28% | 1.27% | 1.29% | 1.41% | |||||||||||
Ratio of net investment income to average net assets1,2* | 2.45%^ | 2.45% | 2.70% | 2.76% | 3.11% | 3.22% | |||||||||||
Portfolio turnover rate | 1.15% | 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. |
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^ | Annualized. |
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+ | Unaudited. |
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# | Not Annualized. |
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
Six Months | Year | Year | Year | Year | Year | ||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 10.76 | $ | 10.74 | $ | 10.55 | $ | 11.07 | $ | 10.66 | $ | 10.73 | |||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | $ | 0.12 | $ | 0.24 | $ | 0.28 | $ | 0.28 | $ | 0.33 | $ | 0.35 | |||||
Net realized and unrealized gain (loss) on investments3 | 0.18 | 0.02 | 0.19 | (0.52) | 0.41 | (0.07) | |||||||||||
Total from investment operations | $ | 0.30 | $ | 0.26 | $ | 0.47 | $ | (0.24) | $ | 0.74 | $ | 0.28 | |||||
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Distributions from net investment income | $ | (0.12) | $ | (0.24) | $ | (0.28) | $ | (0.28) | $ | (0.33) | $ | (0.35) | |||||
NET ASSET VALUE, END OF PERIOD | $ | 10.94 | $ | 10.76 | $ | 10.74 | $ | 10.55 | $ | 11.07 | $ | 10.66 | |||||
Total Return (excludes any applicable sales charge) | 2.81%# | 2.45% | 4.53% | (2.19%) | 7.04% | 2.64% | |||||||||||
RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||
Net assets, end of period (in thousands) | $5,109 | $5,164 | $4,684 | $5,173 | $4,854 | $4,150 | |||||||||||
Ratio of expenses to average net assets after waivers1,2* | 0.98%^ | 0.98% | 1.01% | 1.08% | 1.07% | 1.07% | |||||||||||
Ratio of expenses to average net assets before waivers2 | 1.69%^ | 1.71% | 1.71% | 1.67% | 1.78% | 1.93% | |||||||||||
Ratio of net investment income to average net assets1,2* | 2.28%^ | 2.27% | 2.68% | 2.62% | 3.07% | 3.30% | |||||||||||
Portfolio turnover rate | 14.75% | 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. |
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^ | Annualized. |
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+ | Unaudited. |
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# | Not Annualized. |
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.
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 | Ending | Expenses | Annualized | |
Kansas Municipal Fund |
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Actual | $1,000.00 | $1,028.20 | $4.94 | 0.98% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.13 | $4.92 | 0.98% |
Nebraska Municipal Fund |
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|
Actual | $1,000.00 | $1,031.76 | $4.95 | 0.98% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.13 | $4.92 | 0.98% |
Oklahoma Municipal Fund | ||||
Actual | $1,000.00 | $1,037.32 | $4.96 | 0.98% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.13 | $4.92 | 0.98% |
Maine Municipal Fund |
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|
Actual | $1,000.00 | $1,032.01 | $4.95 | 0.98% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.13 | $4.92 | 0.98% |
New Hampshire Municipal Fund |
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Actual | $1,000.00 | $1,028.12 | $4.94 | 0.98% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.13 | $4.92 | 0.98% |
* | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days in one-half year period, and dividend by 364 days in the fiscal year (to reflect the one-half year period). |
BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENT (unaudited)
Viking Fund Management, LLC ("Viking" or "Adviser"), the Fund's investment adviser; Integrity Funds Distributor, LLC ("IFD"), the Fund's underwriter; and Integrity Fund Services, LLC ("IFS"), the Fund's transfer, accounting, and administrative services agent; are subsidiaries of Corridor Investors, LLC ("Corridor"), the Fund's sponsor.
The approval and the continuation of a fund's investment advisory agreement must be specifically approved at least annually (1) by a vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or "Interested Persons" of any party ("Independent Trustees"), cast in person at a meeting called for the purpose of voting on such approval. In preparation for the meeting, the Board requests and reviews a wide variety of materials provided by the Fund's adviser. The Independent Trustees also received advice from their independent counsel on the issues to focus on during contract renewals. At a meeting held on October 30, 2015, the Board of Trustees, including a majority of the Independent Trustees of the Fund, renewed the Management and Investment Advisory Agreement ("Advisory Agreement") between the Funds and Viking.
The Trustees, including a majority of Trustees who are neither party to the Advisory Agreement nor "interested persons" of any such party (as such term is defined for regulatory purposes), unanimously renewed the Advisory Agreement. In determining whether it was appropriate to renew the Advisory Agreement, the Trustees requested information, provided by the Investment Adviser that it believed to be reasonably necessary to reach its conclusion. In connection with the renewal of the Advisory Agreement, the Board reviewed factors set out in judicial decisions and Securities Exchange Commission directives relating to the renewal of advisory contracts, which include but are not limited to, the following:
|
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| (a) | the nature and quality of services to be provided by the adviser to the fund; |
|
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| (b) | the various personnel furnishing such services and their duties and qualifications; |
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| (c) | the relevant fund's investment performance as compared to standardized industry performance data; |
|
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| (d) | the adviser's costs and profitability of furnishing the investment management services to the fund; |
|
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| (e) | the extent to which the adviser realizes economies of scale as the fund grows larger and the sharing thereof with the fund; |
|
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| (f) | an analysis of the rates charged by other investment advisers of similar funds; |
|
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| (g) | the expense ratios of the applicable fund as compared to data for comparable funds; and |
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| (h) | information with respect to all benefits to the adviser associated with the fund, including an analysis of so-called "fallout" benefits or indirect profits to the adviser from its relationship to the funds. |
In evaluating the Adviser's services and its fees, the Trustees reviewed information concerning the performance of each Fund, the recent financial statements of the Adviser and its parent, and the proposed advisory fee and other fund expenses compared to the level of advisory fees and expenses paid by other similar funds. In reviewing the Advisory Agreement with the foregoing Funds, the Trustees considered, among other things, the fees, the Fund's past performance, the nature and quality of the services provided, the profitability of the Adviser and its parent (estimated costs and estimated profits from furnishing the proposed services to each Fund), and the expense waivers by the Adviser. The Trustees also considered any ancillary benefits to the Adviser and its affiliates for services provided to each Fund. In this regard, the Trustees noted that there were no soft dollar arrangements involving the Adviser and the only benefits to affiliates were the fees earned for services provided. The Trustees did not identify any single factor discussed above as all-important or controlling. The Trustees also considered the Adviser's commitment to voluntarily limit Fund expenses and the skills and capabilities of the Adviser.
The following paragraphs summarize the material information and factors considered by the Board, including the Independent Trustees, as well as their conclusions relative to such factors in considering the renewal of the Advisory Agreement:
Nature, extent and quality of services: The Investment Adviser currently provides services to eleven funds with investment strategies ranging from non-diversified sector funds to broad-based equity funds. The experience and expertise of the Investment Adviser is attributable to the long-term focus on managing investment companies and has the potential to enhance the Funds' future performance. They have a strong culture of compliance and provide quality services. The overall nature and quality of the services provided by the Investment Adviser had historically been, and continues to be, adequate and appropriate.
Various personnel furnishing such services and their duties and qualifications: The Portfolio Manager of the Fund has numerous years of experience in the advisory and money management area adding significant expertise to the Adviser of the Fund. A detailed biography of the portfolio manager was presented to the Trustees. This information is disclosed in the prospectus and/or SAI of the Fund.
Investment performance: Upon a review of the total return history and category rankings of each Fund, the Trustees deemed the performance of each Fund to be satisfactory. In addition, each of the Funds has been meeting its investment objective.
As of August 31, 2015, the risk for: (1) Kansas Municipal Fund was average for the 3 and 5-year time periods. It had a below average risk for the 10-year period; (2) Nebraska Municipal Fund was above average for the 3 and 5-year time periods. It had average risk for the 10-year period; (3) Oklahoma Municipal Fund was above average for the 3 and 5-year periods, and high for the 10-year time period; (4) New Hampshire Municipal Fund was low for the 3, 5, and 10-year time periods; (5) Maine Municipal Fund was below average for the 3 and 10-year time periods. It had above average risk for the 5-year period.
As of August 31, 2015, the Fund return rating for: (1) Kansas Municipal Fund was below average for the 3-year period, and average for the 5-year and 10-year time periods; (2) Nebraska Municipal Fund was below average for the 3-year period, and average for the 5-year and 10-year time periods; (3) Oklahoma Municipal Fund was below average for the 3-year period, and average for the 5-year and 10-year time periods; (4) New Hampshire Municipal Fund was low for the 3 and 5-year periods, and below average for the 10-year time period; (5) Maine Municipal Fund was below average for the 3, 5, and 10-year time periods.
As of August 31, 2015, the Fund performance for: (1) Kansas Municipal Fund for the 1, 3, 5 and 10-year periods were below its index. The returns for the 1, 3, 5, and 10 year periods were above its median classification; (2) Nebraska Municipal Fund returns for the 3, 5 and 10-year periods were below its index, and at its index for the 1-year period. The returns for the 1, 3, 5 and 10-year periods were above its median classification; (3) Oklahoma Municipal Fund returns for the 1, 3, 5 and 10-year periods were below its index. Its returns for the 1, 3, 5, and 10-year periods were above its median classification; (4) New Hampshire Municipal Fund returns for the 1, 3, 5 and 10-year periods were below its index. The 3 and 5-year periods returns were below its median classification, while the 1 and 10-year periods returns were at or above it median classification; (5) Maine Municipal Fund returns for the 1, 3, 5, and 10-year periods were below its index, and the returns for the 1, 3, and 5-year periods were below its median classification but above its median classification for its 10-year period.
Profitability: In connection with its review of fees, the Board also considered the profitability of Viking for its advisory activities. In this regard, the Board reviewed information regarding the finances of Corridor and Viking. Based on the information provided, the Board concluded that the level of profitability was reasonable in light of the services provided.
Economies of scale: The Board discussed the benefits for the Funds as the Adviser could realize economies of scale as each of the Funds grow larger, but the size of the Funds has not reached an asset level to benefit from economies of scale. The advisory fees are structured appropriately based on the size of the Fund. The Adviser has indicated that a new advisory fee structure may be looked at if a Fund reaches an asset level where it could benefit from economies of scale.
Analysis of the rates charged by other investment advisers of similar funds: A comparison of the management fees charged by the Advisor seemed reasonable to the Trustees when compared to similar funds in objective and size. The Adviser is voluntarily waiving advisory fees to a certain degree due to the small size of the Funds.
Expense ratios of the applicable fund as compared to data for comparable funds: Each of the Fund's net expense ratios of 0.98% was comparable to slightly above the average expense ratio of other funds of similar objective and size.
Information with respect to all benefits to the adviser associated with the fund, including an analysis of so-called "fallout" benefits or indirect profits to the adviser from its relationship to the funds: The Board noted that the Adviser does not realize material direct benefits from its relationship with the Fund. The Adviser does not participate in any soft dollar arrangements from securities trading in the Integrity Managed Portfolios.
In voting unanimously to renew the Advisory Agreement, the Trustees did not identify any single factor as being of paramount importance. The Trustees noted that their discussion in this regard was premised on numerous factors including the nature, quality and resources of Viking, the strategic plan involving the Funds, and the potential for increased distribution and growth of the Funds. They determined that, after considering all relevant factors, the renewal of the Advisory Agreement would be in the best interest of each of the Funds and its shareholders.
Potential Conflicts of Interest—Investment Adviser
Actual or apparent conflicts of interest may arise when a portfolio manager has day-to-day management responsibilities with respect to more than one fund or other account. More specifically, portfolio managers who manage multiple funds are presented with the following potential conflicts:
The management of multiple funds may result in a portfolio manager devoting unequal time and attention to the management of each fund. The management of multiple funds and accounts also may give rise to potential conflicts of interest if the funds and accounts have different objectives, benchmarks, time horizons, and fees as the portfolio manager must allocate his time and investment ideas across multiple funds and accounts.
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| • | Shannon D. Radke is a Governor, President, and Chief Executive Officer of Corridor. He owns membership interests of approximately 9.8% in Corridor. He initially received membership interests, without a cash investment, in exchange for contributions to Corridor (including experience in the mutual fund industry and personal guaranties of bank financing) and, in addition, in exchange for his interest in Viking. Mr. Radke also purchased a portion of his membership interests in Corridor. Certain other current employees of Corridor own, in the aggregate, approximately 29%-30% of the total membership interests in Corridor, with those employees individually owning an interest of 0.07% to 1.99%. They initially received their membership interests in exchange for their experience and role in the operations of Corridor; some have since purchased a portion of their membership interests. |
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| • | With respect to securities transactions for the Funds, the Investment Adviser determines which broker to use to execute each order, consistent with the duty to seek best execution of the transaction. The portfolio manager may execute transactions for another fund or account that may adversely impact the value of securities held by the Funds. Securities selected for funds or accounts other than the Funds may outperform the securities selected for the Funds. |
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| • | The appearance of a conflict of interest may arise where the Investment Adviser has an incentive, such as a performance-based management fee, which relates to the management of one fund but not all funds with respect to which a portfolio manager has day-to-day management responsibilities. The management of personal accounts may give rise to potential conflicts of interest; there is no assurance that the Funds' code of ethics will adequately address such conflicts. One of the portfolio manager's numerous responsibilities is to assist in the sale of Fund shares. The compensation of Monte Avery, Shannon Radke, and Josh Larson (the "Portfolio Manager" of the Funds), is based on salary paid every other week. The Portfolio Managers are not compensated for client retention. In addition, Corridor sponsors a 401(K) plan for all its employees. This plan is funded by employee elective deferrals and a match up to 6% by Corridor of the employees gross pay. |
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| • | Although the Portfolio Manager generally does not trade securities in his own personal account, each of the Funds has adopted a code of ethics that, among other things, permits personal trading by employees under conditions where it has been determined that such trades would not adversely impact client accounts. Nevertheless, the management of personal accounts may give rise to potential conflicts of interest, and there is no assurance that these codes of ethics will adequately address such conflicts. |
The Investment Adviser and the Funds have adopted certain compliance procedures, which are designed to address these types of conflicts. However, there is no guarantee that such procedures will detect each and every situation in which a conflict arises.
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.
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.
The information required in this Item is only required in an annual report on Form N-CSR.
Item 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The information required in this Item is only required in an annual report on Form N-CSR.
Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
The information required by this Item is only required in an annual report on Form N-CSR.
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) | The registrant's code of ethics filed pursuant to Item 2 of the N-CSR is filed with the registrant's annual N-CSR. |
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| (2) | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 is filed and attached hereto. |
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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
April 4, 2016
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
April 4, 2016
By: /s/ Adam Forthun
Adam Forthun
Treasurer
April 4, 2016