UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-6239
Tax-Free Fund for Utah
(Exact name of Registrant as specified in charter)
380 Madison Avenue
New York, New York 10017
(Address of principal executive offices) (Zip code)
Joseph P. DiMaggio
380 Madison Avenue
New York, New York 10017
(Name and address of agent for service)
Registrant's telephone number, including area code:(212) 697-6666
Date of fiscal year end: 6/30/12
Date of reporting period: 12/31/12
FORM N-CSRS
ITEM 1. REPORTS TO STOCKHOLDERS.
Semi-Annual Report |
December 31, 2012 |
A tax-free income investment |
Serving Utah Investors For Over 20 Years Tax-Free Fund For Utah “Sticking To Basics” |
February, 2013
Dear Fellow Shareholder:
Credit crunch – financial crisis – fiscal cliff – these are just some of the terms that have been in the media over the past year. It’s enough to make your head spin and your stomach turn.
While we certainly take note of the opinions in the press, Management of your Fund doesn’t unduly stress over them. Why? Because we stick to basics – emphasis on high quality securities, intermediate maturity and geographic diversification among projects and communities within Utah. Add to this, local orientation, detailed research and top quality service providers, and we believe we have a formula that has served you, and our other shareholders, well over the years in your search for preservation of capital and tax-free income. And, we believe it will continue to serve you well in whatever economic environment prevails during 2013.
Investment Quality. No matter what the quality rating for a particular security may be, it will still be subject to market fluctuations – even in the calmest of markets. However, in general, the higher the quality rating of a municipal security, the greater and more reliable the cash flow there is for the municipality to cover interest and principal payments when due on the security. Exaggerated price changes that may occur in emotionally charged securities markets normally do not represent the ability of a municipal issuer to pay interest and principal in a timely manner on any particular security. It is the cash flow and solidness of the municipal issuer that count - and this is reflected in the quality level of the credit rating.
Thus, in accordance with your Fund’s prospectus, Tax-Free Fund For Utah may only purchase investment grade securities – those rated within the top four credit ratings by a nationally-recognized statistical rating organization - or, if unrated, determined by your investment team to be of comparable quality. We have specifically designed your Fund this way since we believe there is no substitute for quality.
Intermediate Maturity. Through utilizing a blend of maturities – both shorter-term and longer-term – Tax-Free Fund For Utah attempts to provide a satisfactory level of return without subjecting the share price to excessive swings as interest rates increase and decrease. We feel that this approach takes the best that each investment has to offer – gaining stability from the shorter-term maturities and higher yields from the longer-term maturities.
Diversification of the Portfolio. To the maximum extent possible, Tax-Free Fund For Utah strives to invest in as many projects, and types of projects, as possible throughout the state. This is done not only to limit exposure in any particular situation, but also to enhance the quality of life throughout Utah by financing worthy municipal projects.
NOT A PART OF THE SEMI-ANNUAL REPORT
Local Orientation. To strengthen the fingers that Tax-Free Fund For Utah keeps on the pulse of the communities it serves, we have intentionally structured your Fund’s Management to include several residents of Utah. With this structure, we believe your Fund is more sensitive to the subtle nuances within Utah.
Detailed Research. The research conducted prior to investing in a bond, and ongoing credit monitoring, make it possible to evaluate potential risks associated with an individual bond and the adequacy of the compensation provided for that risk. Simply put, we seek to evaluate whether, as a bond investor, your Fund is adequately compensated for the risk associated with lending to a particular issuer.
Top Quality Service Providers. We seek to ensure that highly qualified and knowledgeable organizations look after your investment on a day-to-day basis. The Manager, including its portfolio management team, shareholder servicing and transfer agent, custodian, fund accounting agent, security pricing services, distributor, legal counsel, and auditors were all very carefully chosen and, in our opinion, possess a high level of integrity and expertise.
So, when it appears that the world just might be coming apart at the seams, rest assured that Management of your Fund intends to continue to stick to some tried and true basics.
Sincerely,
Diana P. Herrmann, President
Consideration should be given to the risks of investing, including potential loss of value, market risk, interest rate risk, credit risk, and geographic concentration. Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. For certain investors, some dividends may be subject to Federal and state taxes, including the Alternative Minimum Tax (AMT).
NOT A PART OF THE SEMI-ANNUAL REPORT
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | General Obligation Bonds (19.8%) | and Fitch | Value | ||||||
City, County and State (3.8%) | |||||||||
Anderson, Indiana San District | |||||||||
$ | 505,000 | 4.600%, 07/15/23 AMBAC Insured | A1/A-/NR | $ | 521,210 | ||||
Coral Canyon, Utah Special Service | |||||||||
District | |||||||||
100,000 | 4.850%, 07/15/17 | NR/NR/NR* | 101,390 | ||||||
Harris County, Texas Utility District #268 | |||||||||
905,000 | 4.375%, 09/01/27 Radian Insured | NR/NR/NR* | 913,534 | ||||||
Houston, Texas Public Improvement | |||||||||
1,000,000 | 5.000%, 03/01/29 | Aa2/AA/NR | 1,167,310 | ||||||
King County, Washington School | |||||||||
District #401, School Board Guaranty | |||||||||
Program | |||||||||
1,000,000 | 4.500%, 12/01/25 AGMC Insured | Aa1/AA+/NR | 1,106,930 | ||||||
Laredo, Texas | |||||||||
500,000 | 4.500%, 02/15/24 NPFG Insured | Aa2/AA/AA | 532,275 | ||||||
McKinney, Texas | |||||||||
1,700,000 | 4.500%, 08/15/23 Syncora Guarantee, | ||||||||
Inc. Insured | Aa1/AA+/NR | 1,844,381 | |||||||
1,375,000 | 5.000%, 08/15/24 AMBAC Insured | Aa1/AA+/NR | 1,540,041 | ||||||
San Patricio County, Texas | |||||||||
450,000 | 4.600%, 04/01/25 AMBAC Insured | Aa3/NR/NR | 491,130 | ||||||
Texas State Transportation Commission | |||||||||
Mobility Fund | |||||||||
2,000,000 | 4.500%, 04/01/33 | Aaa/AA+/AAA | 2,170,040 | ||||||
Washington State, Series D | |||||||||
2,000,000 | 5.000%, 01/01/29 AMBAC Insured | ||||||||
(pre-refunded) | Aa1/AA+/AA+ | 2,094,240 | |||||||
Washington State Various Purpose | |||||||||
1,405,000 | 5.000%, 07/01/30 Series A | Aa1/AA+/AA+ | 1,607,306 | ||||||
2,465,000 | 5.000%, 07/01/31 Series A | Aa1/AA+/AA+ | 2,816,484 | ||||||
Total City, County and State | 16,906,271 | ||||||||
Education - Public Schools (2.8%) | |||||||||
Brownsboro, Texas Independent School | |||||||||
District | |||||||||
490,000 | zero coupon, 08/15/16 PSF | ||||||||
Guaranteed | NR/AAA/NR | 471,292 |
1 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | General Obligation Bonds (continued) | and Fitch | Value | ||||||
Education - Public Schools (continued) | |||||||||
Burnet, Texas Consolidated Independent | |||||||||
School District | |||||||||
$ | 1,460,000 | 0.050%, 08/01/14 PSF Guaranteed | AAA/NR/NR | $ | 1,452,671 | ||||
Carbon County, Wyoming School | |||||||||
District #1 (Rawlins Building) | |||||||||
2,050,000 | 4.500%, 06/15/28 | NR/A+/NR | 2,269,288 | ||||||
Clark County, Nevada School District | |||||||||
1,150,000 | 5.000%, 06/15/18 Series B AGMC | ||||||||
Insured | Aa3/AA-/A+ | 1,218,494 | |||||||
Florida State Board of Education Public | |||||||||
Education Capital Outlay | |||||||||
2,000,000 | 4.750%, 06/01/30 2005 Series F | Aa1/AAA/AAA | 2,224,960 | ||||||
Nebo, Utah School District, School | |||||||||
Board Guaranty Program | |||||||||
2,900,000 | 4.500%, 07/01/24 Series A | Aaa/AAA/NR | 3,435,804 | ||||||
Yakima County, Washington School | |||||||||
District #201, School Board Guaranty | |||||||||
Program | |||||||||
1,475,000 | 0.050%, 12/01/14 | Aa1/NR/NR | 1,462,684 | ||||||
Total Education - Public Schools | 12,535,193 | ||||||||
Hospital (0.3%) | |||||||||
Skagit County, Washington Public | |||||||||
Hospital District No. 002, Refunding, | |||||||||
Island Hospital | |||||||||
1,120,000 | 0.250%, 12/01/15 | A1/NR/NR | 1,090,622 | ||||||
Local Public Property (6.1%) | |||||||||
Clark County, Nevada, Refunding | |||||||||
2,280,000 | 5.000%, 12/01/29 Series A | Aa1/AA+/NR | 2,571,658 | ||||||
1,000,000 | 5.000%, 07/01/23 Series B | Aa1/AA+/NR | 1,162,940 | ||||||
2,000,000 | 5.000%, 11/01/28 AGMC Insured | Aa1/AA+/AA | 2,229,200 | ||||||
2,000,000 | 4.750%, 06/01/30 AGMC Insured | Aa1/AA+/NR | 2,163,120 | ||||||
1,000,000 | 4.750%, 11/01/27 NPFG/FGIC | ||||||||
Insured | Aa1/AA+/NR | 1,100,900 | |||||||
Hurst, Texas Refunding & Improvement | |||||||||
570,000 | 0.050%, 08/15/15 | Aa2/AA/NR | 558,526 | ||||||
Kitsap County, Washington Refunding | |||||||||
1,255,000 | 4.850%, 07/01/28 NPFG Insured | Aa3/AA-/NR | 1,333,877 |
2 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | General Obligation Bonds (continued) | and Fitch | Value | ||||||
Local Public Property (continued) | |||||||||
North Las Vegas, Nevada Refunding | |||||||||
Ltd. Tax | |||||||||
$ | 1,000,000 | 5.000%, 06/01/36 | Baa2/A/BBB | $ | 1,055,420 | ||||
North Slope Borough, Alaska | |||||||||
1,000,000 | zero coupon, 06/30/13 Series A NPFG | ||||||||
Insured | Aa3/AA-/AA | 998,490 | |||||||
San Angelo, Texas Certificates of | |||||||||
Participation Obligation | |||||||||
2,765,000 | 5.000%, 02/15/30 Series A | Aa2/AA/AA+ | 3,147,178 | ||||||
San Patricio County, Texas Certificates | |||||||||
of Obligation | |||||||||
2,260,000 | 4.750%, 04/01/31 AMBAC Insured | Aa3/NR/NR | 2,465,231 | ||||||
Utah State, Series A | |||||||||
2,500,000 | 5.000%, 07/01/26 | Aaa/AAA/AAA | 3,074,275 | ||||||
Washoe County, Nevada Refunding | |||||||||
Reno Sparks Convention | |||||||||
2,000,000 | 5.000%, 07/01/28 | Aa2/AA/NR | 2,269,020 | ||||||
Williamson County, Texas | |||||||||
1,610,000 | 5.000%, 02/15/23 NPFG Insured | ||||||||
(pre-refunded) | Aa1/AAA/NR | 1,695,201 | |||||||
1,445,000 | 5.000%, 02/15/23 NPFG Insured | ||||||||
(pre-refunded) | Aa1/BBB/NR | 1,520,631 | |||||||
Total Local Public Property | 27,345,667 | ||||||||
School District (4.5%) | |||||||||
Clark County, Nevada School District | |||||||||
500,000 | 5.000%, 06/15/28 Series A | Aa3/AA-/A+ | 566,550 | ||||||
Comal, Texas Independent School | |||||||||
District | |||||||||
2,000,000 | 5.000%, 02/01/33 NPFG Insured | ||||||||
(pre-refunded) | Aaa/BBB/AAA | 2,102,140 | |||||||
Davis County, Utah School District, | |||||||||
School Building, Utah School Board | |||||||||
Guaranty Program | |||||||||
2,640,000 | 4.000%, 06/01/27 | Aaa/NR/NR | 2,983,702 | ||||||
Granite School District, Utah, Salt Lake | |||||||||
County School Building, School Board | |||||||||
Guaranty Program | |||||||||
1,000,000 | 5.000%, 06/01/31 | Aaa/NR/AAA | 1,191,850 |
3 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | General Obligation Bonds (continued) | and Fitch | Value | ||||||
School District (continued) | |||||||||
Houston, Texas Independent School | |||||||||
District | |||||||||
$ | 3,000,000 | 5.000%, 02/15/28 AGMC Insured | Aaa/AA+/NR | $ | 3,126,750 | ||||
Magnolia, Texas Independent School | |||||||||
District Schoolhouse | |||||||||
1,495,000 | 5.000%, 08/15/25 NPFG/FGIC | ||||||||
Insured | Aa3/NR/NR | 1,629,012 | |||||||
Navasota, Texas Independent School | |||||||||
District | |||||||||
475,000 | 5.000%, 08/15/23 NPFG/FGIC | ||||||||
Insured | A1/NR/NR | 502,422 | |||||||
North East Independent School District, | |||||||||
Texas | |||||||||
1,000,000 | 5.000%, 08/01/33 NPFG Insured PSF | ||||||||
Guaranteed | Aaa/AAA/NR | 1,061,860 | |||||||
Port Arthur, Texas Independent School | |||||||||
District School Building | |||||||||
2,000,000 | 5.250%, 02/15/30 NPFG/FGIC Insured | ||||||||
(pre-refunded) | Aa3/NR/AA- | 2,110,240 | |||||||
Uintah County, Utah School District, | |||||||||
School Board Guaranty Program | |||||||||
455,000 | 4.250%, 02/01/24 | Aaa/NR/NR | 489,821 | ||||||
Wasatch County, Utah School District, | |||||||||
School Board Guaranty Program | |||||||||
880,000 | 5.000%, 06/01/25 | Aaa/NR/NR | 955,337 | ||||||
900,000 | 4.375%, 06/01/26 | Aaa/NR/NR | 981,999 | ||||||
Washoe County, Nevada School District | |||||||||
200,000 | 4.625%, 06/01/23 NPFG/FGIC Insured | ||||||||
(pre-refunded) | Aa2/AA/AA- | 203,576 | |||||||
Washoe County, Nevada School District | |||||||||
Refunding & School Improvement | |||||||||
2,000,000 | 5.000%, 06/01/30 Series A | Aa2/AA/NR | 2,287,280 | ||||||
Total School District | 20,192,539 |
4 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | General Obligation Bonds (continued) | and Fitch | Value | ||||||
Transportation (1.0%) | |||||||||
Texas State Transportation Commission | |||||||||
Mobility Fund | |||||||||
$ | 1,140,000 | 5.000%, 04/01/27 Series A | Aaa/AA+/AAA | $ | 1,294,801 | ||||
2,000,000 | 4.750%, 04/01/35 Series A NPFG/ IBC | ||||||||
Insured | Aaa/AA+/AAA | 2,133,560 | |||||||
Titus County, Texas Unlimited Tax And | |||||||||
Pass-Through Toll Revenue | |||||||||
1,000,000 | 5.000%, 03/01/28 Series 2012-A | NR/A/NR | 1,138,470 | ||||||
Total Transportation | 4,566,831 | ||||||||
Utilities (1.3%) | |||||||||
Central Utah Water Conservancy District | |||||||||
Refunding | |||||||||
765,000 | 5.000%, 04/01/28 Series B | NR/AA+/AAA | 911,016 | ||||||
Las Vegas Valley, Nevada Water District | |||||||||
Refunding | |||||||||
1,000,000 | 5.000%, 06/01/30 Series C | Aa2/AA+/NR | 1,171,950 | ||||||
Las Vegas Valley, Nevada Water District | |||||||||
Refunding & Water Improvement | |||||||||
2,500,000 | 5.000%, 02/01/38 Series A | Aa2/AA+/NR | 2,772,200 | ||||||
Virgin Valley, Nevada Water District | |||||||||
955,000 | 5.000%, 03/01/34 AGC Insured | Aa3/NR/NR | 1,028,096 | ||||||
Total Utilities | 5,883,262 | ||||||||
Total General Obligation Bonds | 88,520,385 | ||||||||
Revenue Bonds (78.8%) | |||||||||
Airport (1.8%) | |||||||||
Alaska State International Airport Revenue | |||||||||
35,000 | 5.000%, 10/01/24 AMBAC Insured | ||||||||
AMT | Aa3/NR/A+ | 35,055 | |||||||
Broward County, Florida Airport System | |||||||||
Revenue Refunding | |||||||||
1,000,000 | 5.375%, 10/01/29 Series O | A1/A+/A | 1,161,150 | ||||||
Clark County, Nevada Passenger Facilities | |||||||||
Charge Revenue Las Vegas-McCarran | |||||||||
International Airport | |||||||||
1,500,000 | 5.000%, 07/01/30 | A1/A+/NR | 1,673,910 |
5 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
Airport (continued) | |||||||||
Hillsborough County, Florida Aviation | |||||||||
Authority | |||||||||
$ | 2,185,000 | 5.250%, 10/01/23 NPFG Insured AMT | A1/A+/A+ | $ | 2,238,423 | ||||
Miami-Dade County, Florida Aviation | |||||||||
Revenue Miami International Airport | |||||||||
1,675,000 | 5.000%, 10/01/22 Series A-1 | A2/A/A | 1,952,631 | ||||||
Reno-Tahoe, Nevada Airport Authority | |||||||||
Revenue Refunding | |||||||||
1,000,000 | 5.000%, 07/01/26 AGMC Insured | Aa3/NR/A | 1,046,930 | ||||||
Total Airport | 8,108,099 | ||||||||
Education (10.7%) | |||||||||
Florida Higher Education Facilities | |||||||||
Authority Revenue, Refunding, | |||||||||
Rollins College Project | |||||||||
1,000,000 | 5.000%, 12/01/37 Series A | A1/NR/NR | 1,114,010 | ||||||
Florida State Board of Education Public | |||||||||
Education | |||||||||
210,000 | 4.500%, 06/01/25 AGMC Insured | Aa1/AAA/AAA | 221,468 | ||||||
Hammond, Indiana School Building | |||||||||
Corp. First Mortgage | |||||||||
1,030,000 | 5.000%, 07/15/31 NPFG Insured | Baa2/AA+/NR | 1,087,804 | ||||||
Hillsborough County, Florida School | |||||||||
Board COP | |||||||||
510,000 | 4.250%, 07/01/26 NPFG Insured | Aa2/AA-/AA | 561,367 | ||||||
1,500,000 | 5.000%, 07/01/31 NPFG Insured | Aa2/AA-/AA | 1,683,390 | ||||||
Salt Lake County, Utah Westminster | |||||||||
College Project | |||||||||
825,000 | 4.750%, 10/01/20 | NR/BBB/NR | 891,289 | ||||||
870,000 | 4.750%, 10/01/21 | NR/BBB/NR | 935,206 | ||||||
2,300,000 | 5.000%, 10/01/22 | NR/BBB/NR | 2,422,590 | ||||||
1,250,000 | 5.000%, 10/01/25 | NR/BBB/NR | 1,306,875 | ||||||
600,000 | 5.000%, 10/01/27 | NR/BBB/NR | 636,372 | ||||||
2,025,000 | 5.125%, 10/01/28 | NR/BBB/NR | 2,107,519 | ||||||
Southern Utah University Revenue | |||||||||
Refunding, Auxiliary System | |||||||||
Student Building Fee | |||||||||
875,000 | 4.000%, 05/01/19 | NR/AA/NR | 991,812 |
6 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
Education (continued) | |||||||||
Texas A&M University Revenue | |||||||||
$ | 1,700,000 | 5.000%, 07/01/34 | Aaa/AAA/AAA | $ | 2,089,929 | ||||
Texas State University System Financing | |||||||||
Revenue | |||||||||
2,000,000 | 5.250%, 03/15/25 | Aa2/AA-/AA | 2,336,500 | ||||||
Tooele County, Utah Municipal Building | |||||||||
Authority School District Lease Revenue | |||||||||
1,000,000 | 4.875%, 06/01/25 | A1/A+/NR | 1,085,660 | ||||||
1,000,000 | 5.000%, 06/01/28 | A1/A+/NR | 1,079,430 | ||||||
Tyler, Texas Independent School District | |||||||||
325,000 | 5.000%, 02/15/26 AGMC Insured | ||||||||
(pre-refunded) | Aa3/AA/AA+ | 356,291 | |||||||
University of North Texas Revenue | |||||||||
Refunding Financing System | |||||||||
2,815,000 | 4.500%, 04/15/25 Series A | Aa2/NR/AA | 3,271,058 | ||||||
University of Utah COP | |||||||||
3,170,000 | 4.350%, 12/01/26 AMBAC Insured | Aa2/AA-/NR | 3,430,098 | ||||||
Utah State Board of Regents | |||||||||
2,980,000 | 4.500%, 04/01/29 | Aa2/AA/NR | 3,353,692 | ||||||
Utah State Board of Regents Auxiliary | |||||||||
& Campus Facility | |||||||||
1,000,000 | 4.125%, 04/01/20 NPFG Insured | Aa2/AA/NR | 1,064,260 | ||||||
Utah State Board of Regents Lease | |||||||||
Revenue | |||||||||
410,000 | 4.500%, 05/01/20 AMBAC Insured | NR/AA/NR | 445,149 | ||||||
425,000 | 4.500%, 05/01/21 AMBAC Insured | NR/AA/NR | 459,289 | ||||||
450,000 | 4.625%, 05/01/22 AMBAC Insured | NR/AA/NR | 485,996 | ||||||
120,000 | 4.650%, 05/01/23 AMBAC Insured | NR/AA/NR | 128,974 | ||||||
Utah State Board of Regents Office | |||||||||
Facility Revenue | |||||||||
1,045,000 | 5.000%, 04/01/23 NPFG Insured | Aa2/AA-/NR | 1,134,003 | ||||||
Utah State Board of Regents, Utah, | |||||||||
Valley University Student Center | |||||||||
Building Fee And Unified System | |||||||||
Revenue | |||||||||
3,005,000 | 5.000%, 11/01/28 Series 2012A | NR/AA/NR | 3,589,262 | ||||||
1,000,000 | 4.000%, 11/01/29 Series 2012A | NR/AA/NR | 1,076,570 |
7 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
Education (continued) | |||||||||
Warsaw, Indiana Multi-School Building | |||||||||
Corp., First Mortgage | |||||||||
$ | 1,800,000 | 5.450%, 01/15/28 Series B | NR/AA+/NR | $ | 2,031,372 | ||||
Washington State Higher Education | |||||||||
Facilities Authority Revenue, Refunding, | |||||||||
Gonzaga University Project | |||||||||
950,000 | 5.000%, 04/01/24 Series B | A3/NR/NR | 1,047,707 | ||||||
Washington State Higher Education | |||||||||
Facilities Authority Revenue, Seattle | |||||||||
University Project | |||||||||
1,250,000 | 5.250%, 11/01/27 AMBAC Insured | NR/A/NR | 1,386,075 | ||||||
Washington State University Revenue | |||||||||
735,000 | 4.600%, 10/01/29 AGMC Insured | Aa2/AA-/NR | 820,311 | ||||||
Weber State University, Utah Student | |||||||||
Facilities System | |||||||||
1,825,000 | 4.400%, 04/01/27 AGMC Insured | NR/AA/NR | 1,939,446 | ||||||
1,275,000 | 5.125%, 04/01/32 NPFG Insured | Baa2/AA/NR | 1,353,349 | ||||||
Total Education | 47,924,123 | ||||||||
Education - Charter Schools (8.9%) | |||||||||
La Vernia, Texas Higher Education Finance | |||||||||
Corp., Jubilee Academy | |||||||||
3,428,600 | 6.500%, 03/15/38 144A† | NR/NR/NR* | 3,428,703 | ||||||
Utah County, Utah Charter School | |||||||||
Revenue Lakeview Academy | |||||||||
210,000 | 5.350%, 07/15/17 Series A | NR/BBB-/NR | 224,179 | ||||||
610,000 | 4.500%, 07/15/22 | NR/BBB-/NR | 612,721 | ||||||
Utah County, Utah Charter School | |||||||||
Revenue Lincoln Academy | |||||||||
635,000 | 5.450%, 06/15/17 Series A 144A | NR/NR/NR* | 638,461 | ||||||
Utah County, Utah Charter School | |||||||||
Revenue Renaissance Academy | |||||||||
225,000 | 5.350%, 07/15/17 Series A 144A | NR/NR/NR* | 230,256 | ||||||
Utah State Charter School Finance | |||||||||
Authority Entheos Academy | |||||||||
5,598,000 | 6.750%, 08/15/38 144A | NR/NR/NR* | 5,597,776 |
8 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
Education - Charter Schools (continued) | |||||||||
Utah State Charter School Finance | |||||||||
Authority Fast Forward Academy | |||||||||
$ | 2,964,100 | 6.500%, 11/15/37 144A | NR/NR/NR* | $ | 2,830,508 | ||||
Utah State Charter School Finance | |||||||||
Authority George Washington | |||||||||
Academy | |||||||||
1,000,000 | 6.750%, 07/15/28 | NR/BB+/NR* | 1,029,630 | ||||||
Utah State Charter School Finance | |||||||||
Authority Legacy Preparatory | |||||||||
Academy | |||||||||
5,510,000 | 6.750%, 06/15/38 144A | NR/NR/NR* | 5,496,445 | ||||||
7,625,000 | 7.250%, 06/15/39 144A | NR/NR/NR* | 7,587,333 | ||||||
Utah State Charter School Finance | |||||||||
Authority Ogden Preparatory | |||||||||
Academy, School Board Guaranty | |||||||||
Program | |||||||||
475,000 | 4.000%, 10/15/22 | NR/AA/NR | 537,790 | ||||||
505,000 | 4.000%, 10/15/23 | NR/AA/NR | 565,696 | ||||||
525,000 | 4.000%, 10/15/24 | NR/AA/NR | 582,351 | ||||||
Utah State Charter School Finance | |||||||||
Authority, Refunding & Improvement, | |||||||||
Davinci Academy | |||||||||
1,000,000 | 7.050%, 09/15/26 Series 2011A | NR/BBB-/NR | 1,090,050 | ||||||
Utah State Charter School Finance | |||||||||
Authority Rockwell Charter School | |||||||||
900,000 | 6.750%, 08/15/28 144A | NR/NR/NR* | 796,212 | ||||||
Utah State Charter School Finance | |||||||||
Authority Ronald Wilson Reagan | |||||||||
Academy | |||||||||
1,315,000 | 5.750%, 02/15/22 Series A 144A | NR/BBB-/NR | 1,397,911 | ||||||
Utah State Charter School Finance | |||||||||
Authority Venture Academy | |||||||||
7,040,000 | 6.750%, 11/15/38 144A | NR/NR/NR* | 7,048,730 | ||||||
Total Education - Charter Schools | 39,694,752 |
9 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
Hospital (5.3%) | |||||||||
Campbell County, Wyoming Hospital | |||||||||
District, Hospital Revenue, Memorial | |||||||||
Hospital Project | |||||||||
$ | 1,040,000 | 5.000%, 12/01/20 | NR/A-/NR | $ | 1,165,434 | ||||
1,000,000 | 5.500%, 12/01/34 | NR/A-/NR | 1,081,570 | ||||||
Harris County, Texas Health Facility | |||||||||
Development Corp. Christus Health | |||||||||
Series A-6 | |||||||||
1,000,000 | 4.750%, 07/01/30 AGMC Insured | Aa3/AA-/NR | 1,098,330 | ||||||
Indiana Finance Authority Hospital | |||||||||
Revenue, Parkview Health System | |||||||||
1,350,000 | 5.875%, 05/01/29 (pre-refunded) | A1/NR/NR | 1,449,630 | ||||||
Indiana Finance Authority Hospital | |||||||||
Revenue, Parkview Health System, | |||||||||
Unrefunded balance | |||||||||
300,000 | 5.875%, 05/01/29 | A1/A+/NR | 314,187 | ||||||
King County, Washington Public Hospital | |||||||||
District No. 002, Refunding, Evergreen | |||||||||
Healthcare | |||||||||
1,000,000 | 5.250%, 12/01/28 | Aa3/A+/NR | 1,136,220 | ||||||
Laramie County, Wyoming Hospital | |||||||||
Revenue, Cheyenne Regional | |||||||||
Medical Center Project | |||||||||
1,000,000 | 5.000%, 05/01/32 | NR/A+/NR | 1,114,350 | ||||||
Reno, Nevada Hospital Revenue, | |||||||||
Washoe Medical Center | |||||||||
725,000 | 5.000%, 06/01/23 AGMC Insured | Aa3/AA-/NR | 783,703 | ||||||
680,000 | 5.000%, 06/01/23 AGMC Insured | Aa3/AA-/NR | 735,060 | ||||||
Richmond, Indiana Hospital Revenue | |||||||||
250,000 | 5.000%, 01/01/19 | NR/A/A | 275,505 | ||||||
Riverton, Utah Hospital Revenue, | |||||||||
Intermountain Health Care Health | |||||||||
Services, Inc. | |||||||||
850,000 | 5.000%, 08/15/36 | Aa1/AA+/NR | 944,809 | ||||||
2,000,000 | 5.000%, 08/15/41 | Aa1/AA+/NR | 2,215,500 |
10 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
Hospital (continued) | |||||||||
Tarrant County, Texas Cultural Education | |||||||||
Facilities Finance Corp. Hospital | |||||||||
Refunding, Scott & White Healthcare | |||||||||
Project | |||||||||
$ | 1,000,000 | 5.250%, 08/15/25 | A1/A/AA- | $ | 1,131,020 | ||||
Utah County, Utah Hospital Revenue, | |||||||||
IHC Health Services, Inc. | |||||||||
500,000 | 5.000%, 05/15/29 | Aa1/AA+/NR | 581,500 | ||||||
5,205,000 | 5.000%, 05/15/43 | Aa1/AA+/NR | 5,814,662 | ||||||
Utah State Board of Regents Revenue | |||||||||
Hospital - University of Utah | |||||||||
3,000,000 | 5.000%, 08/01/31 Series B | Aa2/AA/NR | 3,367,050 | ||||||
Washington State Health Care Facilities | |||||||||
Authority Revenue, Refunding, Fred | |||||||||
Hutchinson Cancer | |||||||||
595,000 | 5.000%, 01/01/18 | A2/A/NR | 674,254 | ||||||
Total Hospital | 23,882,784 | ||||||||
Housing (3.8%) | |||||||||
Florida Housing Finance Corp. | |||||||||
410,000 | 5.000%, 07/01/21 AMT | Aa1/AA+/AA+ | 428,274 | ||||||
390,000 | 6.000%, 07/01/28 | Aa1/AA+/AA+ | 420,346 | ||||||
Indianapolis, Indiana Multi-Family | |||||||||
365,000 | 4.850%, 01/01/21 AMT FNMA Insured | A1/NR/NR | 370,986 | ||||||
Miami-Dade County, Florida Housing | |||||||||
Finance Authority | |||||||||
535,000 | 5.000%, 11/01/23 AGMC Insured AMT | Aa3/AA-/A- | 540,441 | ||||||
South Dakota Housing Development | |||||||||
Authority | |||||||||
45,000 | 6.000%, 05/01/28 | Aa1/AAA/NR | 45,093 | ||||||
Utah Housing Corporation Single | |||||||||
Family Mortgage | |||||||||
25,000 | 5.250%, 07/01/23 AMT | Aa2/AA/AA | 25,024 | ||||||
660,000 | 5.125%, 07/01/24 AMT | Aa3/AA-/AA- | 660,515 | ||||||
590,000 | 5.000%, 07/01/25 AMT | Aa3/AA-/AA- | 589,770 | ||||||
290,000 | 5.100%, 01/01/26 AMT | Aa3/AA-/AA- | 291,380 | ||||||
90,000 | 5.650%, 07/01/27 AMT | Aa2/AA/AA | 90,610 | ||||||
1,000,000 | 5.250%, 01/01/28 AMT | Aa3/AA-/AA- | 1,018,670 |
11 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
Housing (continued) | |||||||||
Utah Housing Corporation Single | |||||||||
Family Mortgage (continued) | |||||||||
$ | 570,000 | 5.200%, 01/01/28 AMT | Aa3/AA-/AA- | $ | 580,955 | ||||
1,690,000 | 5.800%, 07/01/28 AMT | Aa3/AA-/AA- | 1,781,429 | ||||||
635,000 | 5.700%, 07/01/28 AMT | Aa3/AA-/AA- | 667,048 | ||||||
465,000 | 5.500%, 07/01/28 AMT | Aa3/AA-/AA- | 485,093 | ||||||
750,000 | 6.100%, 01/01/29 AMT | Aa3/AA-/AA- | 798,465 | ||||||
1,250,000 | 5.250%, 07/01/28 Series A AMT | Aa3/AA-/AA- | 1,307,213 | ||||||
575,000 | 4.950%, 01/01/32 Series A Class II | Aa2/AA/AA | 608,747 | ||||||
2,105,000 | 4.500%, 01/01/24 Series A Class III . | Aa3/AA-/AA- | 2,231,595 | ||||||
1,000,000 | 4.000%, 07/01/28 Series B-1 Class I . | Aaa/AAA/AAA | 1,031,370 | ||||||
950,000 | 4.625%, 07/01/32 Series B-1 Class II . | Aa2/AA/AA | 1,001,310 | ||||||
870,000 | 4.500%, 07/01/23 Series C | Aa3/AA-/AA- | 927,933 | ||||||
Utah State Housing Finance Agency | |||||||||
35,000 | 5.700%, 07/01/15 AMT | Aa3/AA-/AA- | 35,165 | ||||||
285,000 | 5.500%, 07/01/18 AMT | Aa3/AA-/AA- | 288,862 | ||||||
15,000 | 5.000%, 07/01/18 AMT | Aaa/AA+/NR | 15,013 | ||||||
140,000 | 5.600%, 07/01/23 AMT | Aa2/AA/AA | 140,167 | ||||||
Wyoming Community Development | |||||||||
Authority Homeownership Mortgage | |||||||||
Revenue | |||||||||
755,000 | 4.625%, 06/01/28 Series A | Aa2/NR/NR | 802,482 | ||||||
Total Housing | 17,183,956 | ||||||||
Local Public Property (10.5%) | |||||||||
Clark County, Nevada Improvement | |||||||||
District Special Local Improvement | |||||||||
#128 (Summerlin) | |||||||||
500,000 | 5.000%, 02/01/21 Series A | NR/NR/NR* | 458,435 | ||||||
Draper, Utah Sales Tax Revenue | |||||||||
1,640,000 | 4.500%, 05/01/27 Series A | NR/AA/NR | 1,893,560 | ||||||
1,000,000 | 5.000%, 05/01/32 Series A | NR/AA/NR | 1,185,730 | ||||||
El Paso, Texas Solid Waste Disposal | |||||||||
System Revenue | |||||||||
1,540,000 | 5.125%, 08/15/28 AGMC Insured | Aa3/AA-/NR | 1,565,379 | ||||||
Herriman, Utah Special Assessment | |||||||||
Towne Center Assessment Area | |||||||||
1,045,000 | 4.875%, 11/01/23 | NR/A/NR | 1,119,644 |
12 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
Local Public Property (continued) | |||||||||
Herriman, Utah Special Assessment | |||||||||
Towne Center Assessment Area | |||||||||
(continued) | |||||||||
$ | 1,150,000 | 5.000%, 11/01/25 | NR/A/NR | $ | 1,230,626 | ||||
1,975,000 | 5.000%, 11/01/29 | NR/A/NR | 2,052,025 | ||||||
Lincoln County, Wyoming Building | |||||||||
Corp. Lease Revenue | |||||||||
700,000 | 5.000%, 05/01/32 | NR/A+/NR | 787,045 | ||||||
New Albany, Indiana Development | |||||||||
Authority | |||||||||
500,000 | 4.250%, 02/01/22 | NR/A-/NR | 520,090 | ||||||
Orem, Utah Special Assessment | |||||||||
1,765,000 | 7.750%, 11/01/25 | NR/NR/NR* | 1,776,014 | ||||||
Riverton City, Utah Franchise & Sales | |||||||||
Tax Revenue | |||||||||
1,585,000 | 5.000%, 06/01/31 AMBAC Insured | NR/AA-/AA | 1,727,935 | ||||||
Salt Lake Valley, Utah Fire Service | |||||||||
District Lease Revenue | |||||||||
2,645,000 | 5.200%, 04/01/28 | Aa2/NR/AA- | 2,996,494 | ||||||
1,000,000 | 5.250%, 04/01/30 | Aa2/NR/AA- | 1,129,030 | ||||||
Sevier County, Utah Municipal Building | |||||||||
Authority Lease Revenue Refunding | |||||||||
915,000 | 5.000%, 11/15/19 NPFG/ FGIC Insured | ||||||||
(pre-refunded) | NR/NR/NR* | 972,965 | |||||||
South Dakota State Building Authority | |||||||||
Revenue | |||||||||
500,000 | 4.500%, 06/01/24 NPFG/ FGIC Insured | NR/AA/NR | 545,415 | ||||||
South Ogden City, Utah Sales Tax | |||||||||
Revenue Refunding | |||||||||
1,895,000 | 4.375%, 05/01/29 NPFG/ FGIC Insured | Baa2/A+/NR | 1,974,363 | ||||||
Twin Creeks, Utah Special Services | |||||||||
District | |||||||||
11,230,970 | 10.000%, 07/15/30 144A | NR/NR/NR* | 11,296,334 | ||||||
Uintah County, Utah Municipal Building | |||||||||
Authority Lease Revenue | |||||||||
500,000 | 5.000%, 06/01/24 | NR/A+/NR | 556,965 | ||||||
2,000,000 | 5.300%, 06/01/28 | NR/A+/NR | 2,219,580 |
13 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
Local Public Property (continued) | |||||||||
Uintah County, Utah Municipal Building | |||||||||
Authority Lease Revenue (continued) | |||||||||
$ | 1,005,000 | 5.500%, 06/01/37 | NR/A+/NR | $ | 1,094,445 | ||||
1,120,000 | 5.500%, 06/01/40 | NR/A+/NR | 1,220,251 | ||||||
Utah State Municipal Finance Cooperative | |||||||||
Local Government Capital Appreciation | |||||||||
Pool Capital, Salt Lake | |||||||||
165,000 | zero coupon, 03/01/14 AGMC Insured | Aa3/AA-/AA | 162,373 | ||||||
Utah Transit Authority Sales Tax Revenue, | |||||||||
Series A | |||||||||
1,000,000 | 5.000%, 06/15/28 | Aa2/AAA/AA | 1,155,210 | ||||||
Washington County/St. George Interlocal | |||||||||
Agency, Utah Lease Revenue Refunding | |||||||||
650,000 | 0.500%, 12/01/15 Series A | A1/A+/NR | 639,970 | ||||||
1,365,000 | 0.500%, 12/01/16 Series A | A1/A+/NR | 1,322,494 | ||||||
West Bountiful, Utah Courthouse Revenue | |||||||||
410,000 | 5.000%, 05/01/19 | NR/A/A+ | 425,937 | ||||||
West Valley City, Utah Municipal Building | |||||||||
Authority Lease Revenue Refunding | |||||||||
1,645,000 | 4.500%, 08/01/22 Series A NPFG/ | ||||||||
FGIC Insured | NR/A+/A+ | 1,773,195 | |||||||
1,890,000 | 4.375%, 08/01/26 Series A NPFG/ | ||||||||
FGIC Insured | NR/A+/A+ | 2,006,443 | |||||||
West Valley City, Utah Sales Tax Revenue | |||||||||
Capital Appreciation Bonds, Refunding | |||||||||
2,750,000 | zero coupon, 07/15/35 | NR/AA+/NR | 980,512 | ||||||
Total Local Public Property | 46,788,459 | ||||||||
State Agency (1.8%) | |||||||||
Utah Infrastructure Agency | |||||||||
Telecommunications & Franchise Tax | |||||||||
1,000,000 | 5.500%, 10/15/30 Series A AGMC | ||||||||
Insured | Aa3/AA-/NR | 1,183,200 | |||||||
1,475,000 | 5.250%, 10/15/33 Series A AGMC | ||||||||
Insured | Aa3/AA-/NR | 1,668,609 |
14 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
State Agency (continued) | |||||||||
Utah State Building Ownership Authority | |||||||||
Lease Revenue Refunding State | |||||||||
Facilities Master Lease Program | |||||||||
$ | 465,000 | 5.000%, 05/15/21 (pre-refunded) | Aa1/AA+/NR | $ | 533,197 | ||||
510,000 | 5.000%, 05/15/23 (pre-refunded) | Aa1/AA+/NR | 584,797 | ||||||
1,000,000 | 5.000%, 05/15/24 | Aa1/AA+/NR | 1,249,320 | ||||||
1,080,000 | 5.000%, 05/15/25 (pre-refunded) | Aa1/AA+/NR | 1,149,185 | ||||||
1,575,000 | 5.000%, 05/15/26 | Aa1/AA+/NR | 1,804,289 | ||||||
Total State Agency | 8,172,597 | ||||||||
Tax Revenue (6.9%) | |||||||||
Bountiful City, Utah Sales Tax Refunding | |||||||||
Bond | |||||||||
191,000 | 3.500%, 06/01/13 | NR/AA/NR | 192,923 | ||||||
832,000 | 4.000%, 06/01/17 | NR/AA/NR | 910,707 | ||||||
Brigham, Utah Special Assessment | |||||||||
Voluntary Assessment Area | |||||||||
1,140,000 | 5.250%, 08/01/23 | A1/NR/NR | 1,266,836 | ||||||
895,000 | 5.500%, 08/01/29 | A1/NR/NR | 991,535 | ||||||
Clark County, Nevada Improvement | |||||||||
District | |||||||||
250,000 | 5.000%, 08/01/16 | NR/NR/NR* | 238,347 | ||||||
Coral Canyon, Utah Special Service | |||||||||
District | |||||||||
25,000 | 5.000%, 07/15/13 Escrowed to | ||||||||
Maturity | NR/NR/NR* | 25,624 | |||||||
250,000 | 5.500%, 07/15/18 (pre-refunded) | NR/NR/NR* | 256,900 | ||||||
Henderson, Nevada Local Improvement | |||||||||
District | |||||||||
290,000 | 5.000%, 09/01/14 | NR/NR/NR* | 297,787 | ||||||
290,000 | 5.000%, 09/01/15 | NR/NR/NR* | 299,228 | ||||||
225,000 | 5.000%, 03/01/16 | NR/NR/NR* | 224,140 | ||||||
Holladay, Utah Redevelopment Agency | |||||||||
2,387,500 | 4.900%, 12/30/20 | NR/NR/NR* | 2,225,508 | ||||||
Jordanelle, Utah Special Service District | |||||||||
186,000 | 5.000%, 11/15/14 | NR/NR/NR* | 186,339 | ||||||
196,000 | 5.100%, 11/15/15 | NR/NR/NR* | 196,216 | ||||||
206,000 | 5.200%, 11/15/16 | NR/NR/NR* | 206,150 |
15 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
Tax Revenue (continued) | |||||||||
Jordanelle, Utah Special Service District | |||||||||
(continued) | |||||||||
$ | 216,000 | 5.300%, 11/15/17 | NR/NR/NR* | $ | 216,119 | ||||
228,000 | 5.400%, 11/15/18 | NR/NR/NR* | 228,082 | ||||||
240,000 | 5.500%, 11/15/19 | NR/NR/NR* | 240,000 | ||||||
253,000 | 5.600%, 11/15/20 | NR/NR/NR* | 252,028 | ||||||
268,000 | 5.700%, 11/15/21 | NR/NR/NR* | 265,047 | ||||||
283,000 | 5.800%, 11/15/22 | NR/NR/NR* | 278,602 | ||||||
299,000 | 6.000%, 11/15/23 | NR/NR/NR* | 295,224 | ||||||
La Verkin, Utah Sales and Franchise | |||||||||
Tax Revenue | |||||||||
571,000 | 5.100%, 07/15/27† | NR/NR/NR* | 565,792 | ||||||
Lehi, Utah Sales Tax | |||||||||
790,000 | 5.000%, 06/01/24 AGMC Insured | Aa3/AA-/NR | 825,329 | ||||||
Mesquite, Nevada New Special | |||||||||
Improvement District | |||||||||
200,000 | 4.900%, 08/01/13 | NR/NR/NR* | 198,576 | ||||||
125,000 | 5.250%, 08/01/17 | NR/NR/NR* | 119,702 | ||||||
270,000 | 5.350%, 08/01/19 | NR/NR/NR* | 248,964 | ||||||
115,000 | 5.400%, 08/01/20 | NR/NR/NR* | 105,074 | ||||||
430,000 | 5.500%, 08/01/25 | NR/NR/NR* | 374,341 | ||||||
North Ogden, Utah Sales Tax Revenue | |||||||||
195,000 | 5.000%, 11/01/24 Syncora Guarantee, | ||||||||
Inc. Insured | NR/A+/AA | 205,897 | |||||||
Payson City, Utah Sales Tax Revenue | |||||||||
445,000 | 5.000%, 08/01/21 AGMC Insured | Aa3/AA-/NR | 492,780 | ||||||
Riverton City, Utah Franchise & Sales | |||||||||
Tax Revenue | |||||||||
750,000 | 5.000%, 06/01/24 AMBAC Insured | NR/AA-/AA | 822,203 | ||||||
Salt Lake City, Utah Sales Tax | |||||||||
1,060,000 | 5.000%, 02/01/23 (pre-refunded) | NR/AAA/NR | 1,161,347 | ||||||
1,115,000 | 5.000%, 02/01/24 (pre-refunded) | NR/AAA/NR | 1,221,605 | ||||||
South Weber City, Utah | |||||||||
525,000 | 5.000%, 01/15/24 NPFG Insured | Baa2/A/AA- | 543,060 | ||||||
Springville, Utah Special Assessment | |||||||||
Revenue | |||||||||
397,000 | 5.500%, 01/15/17 | NR/NR/NR* | 397,012 | ||||||
420,000 | 5.650%, 01/15/18 | NR/NR/NR* | 419,962 |
16 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
Tax Revenue (continued) | |||||||||
Springville, Utah Special Assessment | |||||||||
Revenue (continued) | |||||||||
$ | 442,000 | 5.800%, 01/15/19 | NR/NR/NR* | $ | 439,993 | ||||
380,000 | 5.900%, 01/15/20 | NR/NR/NR* | 375,911 | ||||||
Utah Transit Authority Sales Tax Revenue | |||||||||
6,560,000 | 5.000%, 06/15/36 AGMC Insured | ||||||||
Series A | Aa2/AAA/AA | 7,530,683 | |||||||
Vernal City, Utah Sales Tax Revenue | |||||||||
515,000 | 4.750%, 09/01/31 AGC Insured | NR/AA/NR | 575,270 | ||||||
300,000 | 4.875%, 09/01/34 AGC Insured | NR/AA/NR | 332,373 | ||||||
Wasatch County, Utah Building Authority | |||||||||
130,000 | 5.000%, 10/01/15 | A1/NR/NR | 132,960 | ||||||
135,000 | 5.000%, 10/01/16 | A1/NR/NR | 137,943 | ||||||
Washington City, Utah Sales Tax | |||||||||
680,000 | 5.250%, 11/15/17 AMBAC Insured | ||||||||
(pre-refunded) | NR/A/NR | 709,383 | |||||||
Weber County, Utah Sales Tax | |||||||||
385,000 | 5.000%, 07/01/23 AMBAC Insured | ||||||||
(pre-refunded) | A1/NR/NR | 394,001 | |||||||
West Valley City, Utah Redevelopment | |||||||||
Agency | |||||||||
1,625,000 | 5.000%, 03/01/21 | NR/A-/NR | 1,708,736 | ||||||
320,000 | 5.000%, 03/01/22 | NR/A-/NR | 335,869 | ||||||
350,000 | 5.000%, 03/01/23 | NR/A-/NR | 366,380 | ||||||
1,000,000 | 5.000%, 03/01/24 | NR/A-/NR | 1,046,370 | ||||||
Total Tax Revenue | 31,080,858 | ||||||||
Transportation (3.9%) | |||||||||
Central Puget Sound, Washington | |||||||||
Regional Transportation Authority | |||||||||
Sales Tax | |||||||||
2,000,000 | 5.000%, 11/01/25 Series A AMBAC | ||||||||
Insured (pre-refunded) | Aa2/AAA/NR | 2,214,160 | |||||||
Indiana Finance Authority Highway | |||||||||
Revenue | |||||||||
1,950,000 | 4.500%, 12/01/25 NPFG/ FGIC | ||||||||
Insured | Aa1/AA+/AA+ | 2,183,844 |
17 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
Transportation (continued) | |||||||||
North Texas Turnpike Authority Revenue | |||||||||
$ | 2,000,000 | 6.100%, 01/01/28 | A2/A-/NR | $ | 2,360,520 | ||||
Utah Transit Authority Sales Tax Revenue | |||||||||
Capital Appreciation Refunding | |||||||||
2,000,000 | zero coupon, 06/15/29 NPFG Insured | ||||||||
Series A | A1/A-/A+ | 963,960 | |||||||
Utah Transit Authority Sales Tax Revenue | |||||||||
Refunding | |||||||||
5,185,000 | zero coupon, 06/15/23 Series A NPFG | ||||||||
Insured | A1/A-/A+ | 3,444,499 | |||||||
1,000,000 | 5.000%, 06/15/32 | A1/A-/A+ | 1,160,780 | ||||||
Utah Transit Authority Sales Tax Revenue | |||||||||
2,000,000 | 5.000%, 06/15/27 Series A | Aa2/AAA/AA | 2,317,140 | ||||||
Utah Transit Authority Sales Tax & | |||||||||
Transportation Revenue | |||||||||
1,450,000 | 4.125%, 06/15/22 AGMC Insured | Aa2/AAA/AA | 1,563,680 | ||||||
195,000 | 5.250%, 06/15/32 AGMC Insured | Aa2/AAA/AA | 264,229 | ||||||
Washoe County, Nevada Highway | |||||||||
Revenue | |||||||||
1,000,000 | 5.500%, 02/01/28 | A1/A+/NR | 1,136,090 | ||||||
Total Transportation | 17,608,902 | ||||||||
Utility (11.2%) | |||||||||
Clark County, Washington Public Utility | |||||||||
District No. 001 Generating Refunding | |||||||||
1,000,000 | 5.000%, 01/01/24 | A2/A/A+ | 1,158,070 | ||||||
Corpus Christi, Texas Utility System | |||||||||
Revenue | |||||||||
1,000,000 | 5.000%, 07/15/32 | Aa3/A+/AA- | 1,130,310 | ||||||
Cowlitz County, Washington Public | |||||||||
Utility District Electric Revenue | |||||||||
650,000 | 4.500%, 09/01/26 NPFG Insured | A1/NR/A | 680,992 | ||||||
Douglas County, Washington Public | |||||||||
Utility District No. 001 Electric | |||||||||
Distribution System | |||||||||
635,000 | 0.050%, 12/01/15 | Aa3/AA/NR | 620,617 |
18 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
Utility (continued) | |||||||||
Eagle Mountain, Utah Gas & Electric | |||||||||
$ | 1,385,000 | 4.250%, 06/01/20 Radian Insured | NR/NR/NR* | $ | 1,396,315 | ||||
1,440,000 | 5.000%, 06/01/21 Radian Insured | NR/NR/NR* | 1,482,034 | ||||||
1,515,000 | 5.000%, 06/01/22 Radian Insured | NR/NR/NR* | 1,557,465 | ||||||
Houston, Texas Utility System Revenue, | |||||||||
Refunding | |||||||||
1,165,000 | 5.125%, 05/15/28 Series A NPFG | ||||||||
Insured | Aa2/AA/AA- | 1,232,057 | |||||||
Intermountain Power Agency, Utah | |||||||||
Power Supply Revenue, Refunding | |||||||||
250,000 | 5.250%, 07/01/23 | A1/A+/AA- | 255,572 | ||||||
1,000,000 | 5.000%, 07/01/21 Series A AGMC | ||||||||
Insured | Aa3/AA-/AA- | 1,021,920 | |||||||
1,000,000 | 4.250%, 07/01/19 Series B | A1/A+/AA- | 1,060,660 | ||||||
Jacksonville Electric Authority, Florida | |||||||||
Bulk Power System Revenue, | |||||||||
Scherer 4 Project | |||||||||
1,500,000 | 6.000%, 10/01/37 Series A | Aa2/AA-/AA | 1,598,475 | ||||||
Jacksonville Electric Authority, Florida | |||||||||
Electric System Revenue | |||||||||
500,000 | 5.000%, 10/01/26 | Aa3/A+/AA | 511,645 | ||||||
500,000 | 4.500%, 10/01/32 Series Three 2012A | Aa2/AA-/AA | 556,700 | ||||||
515,000 | 5.500%, 10/01/39 | Aa3/A+/AA | 535,492 | ||||||
Lower Colorado River Authority, Texas | |||||||||
1,470,000 | 5.250%, 05/15/29 | A1/A/A+ | 1,713,961 | ||||||
60,000 | 5.250%, 05/15/29 (pre-refunded) | NR/NR/NR* | 75,389 | ||||||
5,000 | 5.250%, 05/15/29 (pre-refunded) | NR/NR/NR* | 6,300 | ||||||
Lower Colorado River Authority, Texas | |||||||||
Transmission Contract Revenue, | |||||||||
Refunding | |||||||||
1,065,000 | 5.000%, 05/15/33 AMBAC Insured | A2/A/A+ | 1,082,359 | ||||||
Port St. Lucie, Florida Utility System | |||||||||
Revenue | |||||||||
1,200,000 | 5.250%, 09/01/26 NPFG Insured | ||||||||
(pre-refunded) | A1/NR/AA- | 1,297,560 | |||||||
Santa Clara, Utah Electric Revenue | |||||||||
1,005,000 | 4.250%, 08/01/26 AGC Insured | Aa3/NR/NR | 988,679 |
19 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
Utility (continued) | |||||||||
Sarasota, Florida Utility System Revenue | |||||||||
Refunding | |||||||||
$ | 1,455,000 | 5.000%, 10/01/27 | NR/AA+/AA | $ | 1,795,557 | ||||
St. George, Utah Electric Revenue | |||||||||
500,000 | 4.500%, 06/01/20 AGMC Insured | Aa3/NR/NR | 533,135 | ||||||
3,750,000 | 5.000%, 06/01/38 AGMC Insured | Aa3/NR/NR | 4,055,587 | ||||||
Tacoma, Washington Solid Waste | |||||||||
Utility Revenue | |||||||||
1,000,000 | 5.000%, 12/01/23 Syncora Guarantee, | ||||||||
Inc. Insured | A2/AA/AA- | 1,102,320 | |||||||
Tallahassee, Florida Energy System | |||||||||
Revenue Refunding | |||||||||
1,500,000 | 5.000%, 10/01/28 | Aa3/AA/AA- | 1,692,765 | ||||||
Texas Municipal Power Agency Revenue | |||||||||
Unrefunded Balance | |||||||||
1,665,000 | zero coupon, 09/01/14 NPFG Insured | A2/A+/A+ | 1,642,023 | ||||||
Utah Associated Municipal Power System | |||||||||
1,000,000 | 5.000%, 04/01/21 AGMC Insured | ||||||||
(pre-refunded) | Aa3/AA-/NR | 1,011,560 | |||||||
Utah Associated Municipal Power System | |||||||||
Revenue, Horse Butte Wind Project | |||||||||
2,120,000 | 0.050%, 09/01/13 Series A | NR/A-/A- | 2,113,746 | ||||||
1,000,000 | 5.000%, 09/01/30 Series A | NR/A-/A- | 1,148,500 | ||||||
1,005,000 | 5.000%, 09/01/32 Series A | NR/A-/A- | 1,142,605 | ||||||
Utah Associated Municipal Power | |||||||||
System Revenue Refunding, Payson | |||||||||
Power Project | |||||||||
2,000,000 | 5.000%, 04/01/24 | NR/A-/A | 2,361,100 | ||||||
1,000,000 | 5.000%, 04/01/25 | NR/A-/A | 1,166,130 | ||||||
6,375,000 | 5.000%, 04/01/26 | NR/A-/A | 7,396,594 | ||||||
Washington, Utah Electric Revenue | |||||||||
985,000 | 5.000%, 09/01/21 Syncora Guarantee, | ||||||||
Inc. Insured | Baa1/NR/NR | 1,024,233 | |||||||
1,000,000 | 5.000%, 09/01/24 Syncora Guarantee, | ||||||||
Inc. Insured | Baa1/NR/NR | 1,031,750 | |||||||
Wyoming Municipal Power Agency | |||||||||
Power Supply System Revenue | |||||||||
720,000 | 5.500%, 01/01/28 Series A | A2/A-/NR | 814,270 | ||||||
Total Utility | 49,994,447 |
20 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
Water and Sewer (14.0%) | |||||||||
Cape Coral, Florida Water & Sewer | |||||||||
Revenue | |||||||||
$ | 1,000,000 | 5.000%, 10/01/36 AGMC Insured | Aa3/AA-/A | $ | 1,115,650 | ||||
Central Utah Water Conservancy District | |||||||||
1,000,000 | 5.000%, 10/01/37 Series C | NR/AA+/AA+ | 1,170,580 | ||||||
Central Utah Water Conservancy District | |||||||||
Refunding, Jordanelle Hydrant | |||||||||
1,125,000 | 4.500%, 10/01/27 Series A | NR/AA+/AA | 1,298,745 | ||||||
Central Weber, Utah Sewer Improvement | |||||||||
District Revenue Refunding | |||||||||
1,000,000 | 5.000%, 03/01/28 Series A AGMC | ||||||||
Insured | NR/AA-/AA | 1,150,170 | |||||||
2,000,000 | 4.375%, 03/01/30 Series A AGMC | ||||||||
Insured | NR/AA-/AA | 2,189,400 | |||||||
4,000,000 | 5.000%, 03/01/33 Series A AGMC | ||||||||
Insured | NR/AA-/AA | 4,511,760 | |||||||
Davie, Florida Water & Sewer Revenue | |||||||||
1,000,000 | 5.000%, 10/01/32 AGMC Insured | Aa3/AA-/NR | 1,142,000 | ||||||
Eagle Mountain, Utah Water and Sewer | |||||||||
690,000 | 4.750%, 11/15/25 NPFG Insured | Baa2/A+/AA- | 741,336 | ||||||
Herriman City, Utah Water Revenue | |||||||||
Refunding | |||||||||
1,210,000 | 4.500%, 01/01/33 AMBAC Insured | NR/A/NR | 1,280,519 | ||||||
Jordan Valley, Utah Water Conservancy | |||||||||
District Revenue | |||||||||
1,000,000 | 5.000%, 10/01/31 Series B | NR/AA+/AA | 1,184,300 | ||||||
6,000,000 | 5.000%, 10/01/35 Series B | NR/AA+/AA | 6,970,020 | ||||||
King County, Washington Sewer Revenue | |||||||||
660,000 | 5.000%, 01/01/33 AGMC Insured | Aa2/AA+/NR | 752,882 | ||||||
Laredo, Texas Waterworks Sewer System | |||||||||
Revenue | |||||||||
1,450,000 | 5.000%, 03/01/24 Series 2010 | A1/AA-/AA- | 1,744,103 | ||||||
Miami-Dade County, Florida Water and | |||||||||
Sewer Revenue System | |||||||||
1,500,000 | 5.000%, 10/01/29 AGMC Insured | Aa2/AA-/AA- | 1,740,645 | ||||||
Mountain Regional Water Special Service | |||||||||
District Utah Water Revenue Refunding | |||||||||
3,000,000 | 5.000%, 12/15/33 AGMC Insured | NR/AA-/AA- | 3,493,320 |
21 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
Water and Sewer (continued) | |||||||||
Murray City, Utah Sewer and Water | |||||||||
$ | 440,000 | 5.000%, 10/01/19 AMBAC Insured | |||||||
(pre-refunded) | Aa3/NR/NR | $ | 455,510 | ||||||
Ogden City, Utah Sewer & Water | |||||||||
Revenue Refunding | |||||||||
750,000 | 4.625%, 06/15/38 AGMC Insured | Aa3/NR/NR | 799,545 | ||||||
Orem, Utah Water & Storm Sewer | |||||||||
Revenue | |||||||||
1,000,000 | 5.000%, 07/15/26 | NR/AA/AA+ | 1,130,580 | ||||||
1,250,000 | 5.250%, 07/15/28 | NR/AA/AA+ | 1,434,862 | ||||||
Pleasant Grove City, Utah Storm Water | |||||||||
Revenue | |||||||||
860,000 | 4.750%, 07/15/36 AGMC Insured | Aa3/AA-/AA- | 960,147 | ||||||
Pleasant Grove City, Utah Water Revenue | |||||||||
450,000 | 4.300%, 12/01/20 NPFG Insured | Baa2/BBB+/NR | 477,729 | ||||||
760,000 | 4.625%, 12/01/23 AGMC Insured | NR/AA-/NR | 845,971 | ||||||
1,000,000 | 5.250%, 12/01/29 AGMC Insured | NR/AA-/NR | 1,133,120 | ||||||
1,370,000 | 5.000%, 12/01/31 Series B NPFG | ||||||||
Insured | Baa2/BBB+/NR | 1,456,776 | |||||||
Rapid City, South Dakota Water Revenue | |||||||||
500,000 | 5.000%, 11/01/29 | Aa3/NR/NR | 599,115 | ||||||
1,655,000 | 5.250%, 11/01/39 | Aa3/NR/NR | 1,905,253 | ||||||
Salt Lake & Sandy, Utah Metropolitan | |||||||||
Water District, Water Revenue, | |||||||||
Refunding | |||||||||
1,190,000 | 5.000%, 07/01/31 Series A | NR/AA+/AA+ | 1,433,295 | ||||||
650,000 | 5.000%, 07/01/31 Series A | NR/AA+/AA+ | 740,135 | ||||||
1,000,000 | 5.000%, 07/01/37 Series A | NR/AA+/AA+ | 1,166,830 | ||||||
San Antonio, Texas Water Revenue | |||||||||
Refunding | |||||||||
1,050,000 | 5.000%, 05/15/36 NPFG Insured | Aa1/AA/Aa+ | 1,149,414 | ||||||
South Valley, Utah Water Reclamation | |||||||||
Facility Sewer Revenue | |||||||||
2,110,000 | 5.000%, 08/15/24 AMBAC Insured | NR/A/NR | 2,225,058 | ||||||
425,000 | 5.000%, 08/15/30 AMBAC Insured | NR/A/NR | 444,567 | ||||||
South Weber City, Utah Water Revenue | |||||||||
730,000 | 5.000%, 06/01/35 AGMC Insured | NR/AA-/NR | 808,928 | ||||||
930,000 | 5.000%, 06/01/40 AGMC Insured | NR/AA-/NR | 1,022,861 |
22 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Rating | |||||||||
Principal | Moody’s, S&P | ||||||||
Amount | Revenue Bonds (continued) | and Fitch | Value | ||||||
Water and Sewer (continued) | |||||||||
Utah Water Conservancy District | |||||||||
$ | 1,400,000 | 5.250%, 01/15/27 | NR/A/NR | $ | 1,562,764 | ||||
Utah Water Finance Agency Revenue | |||||||||
970,000 | 4.000%, 10/01/20 AMBAC Insured | Aa3/NR/NR | 1,079,164 | ||||||
Utah Water Finance Agency Revenue | |||||||||
510,000 | 5.000%, 07/01/18 AMBAC Insured | ||||||||
(pre-refunded) | A1/NR/NR | 521,924 | |||||||
830,000 | 4.500%, 10/01/22 AMBAC Insured | Aa3/NR/NR | 871,135 | ||||||
870,000 | 4.500%, 10/01/23 AMBAC Insured | Aa3/NR/NR | 910,586 | ||||||
2,645,000 | 4.500%, 10/01/28 AMBAC Insured | Aa3/NR/NR | 2,894,952 | ||||||
Washington County, Utah Water | |||||||||
Conservancy District Refunding | |||||||||
1,770,000 | 4.500%, 10/01/24 | NR/AA/AA | 2,081,201 | ||||||
White City, Utah Water Improvement | |||||||||
District Revenue | |||||||||
500,000 | 5.000%, 02/01/23 AGMC Insured | Aa3/NR/NR | 549,150 | ||||||
700,000 | 5.000%, 02/01/25 AGMC Insured | Aa3/NR/NR | 764,827 | ||||||
840,000 | 5.000%, 02/01/27 AGMC Insured | Aa3/NR/NR | 915,079 | ||||||
Total Water and Sewer | 62,825,908 | ||||||||
Total Revenue Bonds | 353,264,885 | ||||||||
Total Investments (cost $420,119,159 | |||||||||
- note 4) | 98.6% | 441,785,270 | |||||||
Other assets less liabilities | 1.4 | 6,307,391 | |||||||
Net Assets | 100.0% | $ | 448,092,661 | ||||||
* | Any security not rated (“NR”) by any of the Nationally Recognized Statistical Rating Organizations (“NRSRO” or “Credit Rating Agency”) has been determined by the Investment Adviser to have sufficient quality to be ranked in the top four credit ratings if a credit rating were to be assigned by a NRSRO. | ||||||||
† | Illiquid security: Illiquid securities represent 0.9% of net assets. |
23 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Notes: 144A – Private placement subject to SEC rule 144A, which modifies a two-year holding period requirement to permit qualified institutional buyers to trade these securities among themselves, thereby significantly improving the liquidity of these securities. Pre-refunded bonds are bonds for which U.S. Government Obligations usually have been placed in escrow to retire the bonds at their earliest call date. | ||||
Percent of | ||||
Portfolio Distribution by Quality Rating | Investments1 | |||
Aaa of Moody’s or AAA of S&P and Fitch | 11.9 | % | ||
Aa of Moody’s or AA of S&P and Fitch | 49.9 | |||
A of Moody’s or S&P and Fitch | 20.2 | |||
Baa of Moody’s or BBB of S&P | 3.6 | |||
BB+ of S&P | 0.2 | |||
Not rated* | 14.2 | |||
100.0 | % | |||
1 Calculated using the highest rating of the three NRSROs. |
PORTFOLIO ABBREVIATIONS: AGC - Assured Guaranty Corp. AGMC - Assured Guaranty Municipal Corp. AMBAC - American Municipal Bond Assurance Corp. AMT - Alternative Minimum Tax COP - Certificates of Participation FGIC - Financial Guaranty Insurance Co. FNMA - Federal National Mortgage Association IBC - Insured Bond Certificates NPFG - National Public Finance Guarantee NR - Not Rated PSF - Permanent School Fund |
See accompanying notes to financial statements.
24 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2012 (unaudited)
ASSETS | ||||
Investments at value (cost $420,119,159) | $ | 441,785,270 | ||
Cash | 2,525,098 | |||
Interest receivable | 5,540,598 | |||
Receivable for Fund shares sold | 333,852 | |||
Other assets | 22,987 | |||
Total assets | 450,207,805 | |||
LIABILITIES | ||||
Dividends payable | 1,316,838 | |||
Deferred income | 299,804 | |||
Payable for Fund shares redeemed | 256,732 | |||
Management fees payable | 168,418 | |||
Distribution and service fees payable | 21,450 | |||
Accrued expenses | 51,902 | |||
Total liabilities | 2,115,144 | |||
NET ASSETS | $ | 448,092,661 | ||
Net Assets consist of: | ||||
Capital Stock - Authorized an unlimited number of shares, | ||||
par value $0.01 per share | $ | 428,933 | ||
Additional paid-in capital | 425,363,186 | |||
Net unrealized appreciation on investments (note 4) | 21,666,111 | |||
Accumulated net realized gain on investments | 467,799 | |||
Undistributed net investment income | 166,632 | |||
$ | 448,092,661 | |||
CLASS A | ||||
Net Assets | $ | 255,642,152 | ||
Capital shares outstanding | 24,483,568 | |||
Net asset value and redemption price per share | $ | 10.44 | ||
Maximum offering price per share (100/96 of $10.44 | ||||
adjusted to nearest cent) | $ | 10.88 | ||
CLASS C | ||||
Net Assets | $ | 105,962,215 | ||
Capital shares outstanding | 10,152,458 | |||
Net asset value and offering price per share | $ | 10.44 | ||
Redemption price per share (*a charge of 1% is imposed on | ||||
the redemption proceeds of the shares, or on the original | ||||
price, whichever is lower, if redeemed during the first | ||||
12 months after purchase) | $ | 10.44 | * | |
CLASS Y | ||||
Net Assets | $ | 86,488,294 | ||
Capital shares outstanding | 8,257,238 | |||
Net asset value, offering and redemption price per share | $ | 10.47 |
See accompanying notes to financial statements.
25 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 2012 (unaudited)
Investment Income: | ||||||||
Interest income | $ | 9,338,742 | ||||||
Other income | 11,938 | |||||||
9,350,680 | ||||||||
Expenses: | ||||||||
Management fee (note 3) | $ | 1,121,944 | ||||||
Distribution and service fees (note 3) | 776,840 | |||||||
Legal fees | 101,082 | |||||||
Transfer and shareholder servicing agent fees | 92,966 | |||||||
Trustees’ fees and expenses (note 7) | 81,307 | |||||||
Shareholders’ reports and proxy statements . | 25,833 | |||||||
Custodian fees (note 6) | 11,560 | |||||||
Auditing and tax fees | 10,737 | |||||||
Fund accounting fees | 9,873 | |||||||
Insurance | 9,751 | |||||||
Registration fees and dues | 9,097 | |||||||
Chief compliance officer services (note 3) | 4,484 | |||||||
Miscellaneous | 21,245 | |||||||
Total expenses | 2,276,719 | |||||||
Management fee waived (note 3) | (84,670 | ) | ||||||
Expenses paid indirectly (note 6) | (1,568 | ) | ||||||
Net expenses | 2,190,481 | |||||||
Net investment income | 7,160,199 | |||||||
Realized and Unrealized Gain (Loss) on Investments: | ||||||||
Net realized gain from securities transactions | 539,254 | |||||||
Change in unrealized appreciation on | ||||||||
investments | 6,608,742 | |||||||
Net realized and unrealized gain (loss) on | ||||||||
investments | 7,147,996 | |||||||
Net change in net assets resulting from operations | $ | 14,308,195 |
See accompanying notes to financial statements.
26 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended | ||||||||
December 31, 2012 | Year Ended | |||||||
(unaudited) | June 30, 2012 | |||||||
OPERATIONS: | ||||||||
Net investment income | $ | 7,160,199 | $ | 14,118,461 | ||||
Net realized gain (loss) from securities | ||||||||
transactions | 539,254 | 1,784,883 | ||||||
Change in unrealized appreciation | ||||||||
(depreciation) on investments | 6,608,742 | 18,089,142 | ||||||
Change in net assets from operations | 14,308,195 | 33,992,486 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS (note 10): | ||||||||
Class A Shares: | ||||||||
Net investment income | (4,417,803 | ) | (8,808,164 | ) | ||||
Class C Shares: | ||||||||
Net investment income | (1,289,451 | ) | (2,616,170 | ) | ||||
Class Y Shares: | ||||||||
Net investment income | (1,429,871 | ) | (2,648,622 | ) | ||||
Change in net assets from distributions . | (7,137,125 | ) | (14,072,956 | ) | ||||
CAPITAL SHARE TRANSACTIONS (note 8): | ||||||||
Proceeds from shares sold | 52,212,545 | 138,764,606 | ||||||
Reinvested dividends and distributions | 4,052,847 | 8,525,121 | ||||||
Cost of shares redeemed | (42,866,108 | ) | (90,854,748 | ) | ||||
Change in net assets from capital | ||||||||
share transactions | 13,399,284 | 56,434,979 | ||||||
Change in net assets | 20,570,354 | 76,354,509 | ||||||
NET ASSETS: | ||||||||
Beginning of period | 427,522,307 | 351,167,798 | ||||||
End of period* | $ | 448,092,661 | $ | 427,522,307 | ||||
* Includes undistributed net investment | ||||||||
income, respectively, of: | $ | 166,632 | $ | 143,558 |
See accompanying notes to financial statements.
27 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2012 (unaudited)
1. Organization
Tax-Free Fund For Utah (the “Fund”), a non-diversified, open-end investment company, was organized on December 12, 1990 as a Massachusetts business trust and commenced operations on July 24, 1992. The Fund is authorized to issue an unlimited number of shares and, since its inception to May 21, 1996, offered only one class of shares. On that date, the Fund began offering two additional classes of shares, Class C and Class Y Shares. All shares outstanding prior to that date were designated as Class A Shares and are sold at net asset value plus a sales charge of varying size (depending upon a variety of factors) paid at the time of purchase and bear a distribution fee. Class C Shares are sold at net asset value with no sales charge payable at the time of purchase but with a level charge for service and distribution fees for six years thereafter. Class C Shares automatically convert to Class A Shares after six years. Class Y Shares are sold only through authorized financial institutions acting for investors in a fiduciary, advisory, agency, custodial or similar capacity, and are not offered directly to retail customers. Class Y Shares are sold at net asset value with no sales charge, no redemption fee, no contingent deferred sales charge (“CDSC”) and no distribution fee. On October 31, 1997, the Fund established Class I Shares which are offered and sold only through financial intermediaries and are not offered directly to retail customers. Class I Shares are sold at net asset value with no sales charge and no redemption fee or CDSC, although a financial intermediary may charge a fee for effecting a purchase or other transaction on behalf of its customers. Class I Shares carry a distribution and a service fee. As of the report date, there were no Class I Shares outstanding. All classes of shares represent interests in the same portfolio of investments and are identical as to rights and privileges but differ with respect to the effect of sales charges, the distribution and/or service fees borne by each class, expenses specific to each class, voting rights on matters affecting a single class and the exchange privileges of each class. On December 1, 2012, the Board of Trustees approved a change in the Fund’s fiscal year end from June to March.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America for investment companies.
a) | Portfolio valuation: Municipal securities which have remaining maturities of more than 60 days are valued each business day based upon information provided by a nationally prominent independent pricing service and periodically verified through other pricing services. In the case of securities for which market quotations are readily available, securities are valued by the pricing service at the mean of bid and asked quotations. If a market quotation or a valuation from the pricing service is not readily available, the security is valued at fair value determined in good faith under procedures established by and under the general supervision of the Board of Trustees. Securities which mature in 60 days or less are generally valued at amortized cost if their term to maturity at purchase is 60 days or less, or by amortizing their unrealized appreciation or depreciation on the 61st day prior to maturity, if their term to maturity at purchase exceeds 60 days. |
28 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS (continued)
DECEMBER 31, 2012 (unaudited)
b) | Fair value measurements: The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s investments and are summarized in the following fair value hierarchy: |
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, based on the best information available.
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities
The following is a summary of the valuation inputs, representing 100% of the Fund’s investments, used to value the Fund’s net assets as of December 31, 2012:
Valuation Inputs | Investments in Securities | ||||
Level 1 – Quoted Prices | $ | — | |||
Level 2 – Other Significant Observable | |||||
Inputs — Municipal Bonds* | 441,785,270 | ||||
Level 3 – Significant Unobservable Inputs | — | ||||
Total | $ | 441,785,270 |
*See schedule of investments for a detailed listing of securities.
c) | Subsequent events: In preparing these financial statements, the Fund has evaluated events and transactions for potential recognition or disclosure through the date these financial statements were issued. |
d) | Securities transactions and related investment income: Securities transactions are recorded on the trade date. Realized gains and losses from securities transactions are reported on the identified cost basis. Interest income is recorded daily on the accrual basis and is adjusted for amortization of premium and accretion of original issue and market discount. In connection with certain bonds, fee income is recognized by the Fund on a daily basis over the life of the bonds. |
e) | Federal income taxes: It is the policy of the Fund to continue to qualify as a regulated investment company by complying with the provisions of the Internal Revenue Code applicable to certain investment companies. The Fund intends to make distributions of income and securities profits sufficient to relieve it from all, or substantially all, Federal income and excise taxes. |
29 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS (continued)
DECEMBER 31, 2012 (unaudited)
Management has reviewed the tax positions for each of the open tax years (2010-2012) or expected to be taken in the Fund’s 2013 tax returns and has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements.
f) | Multiple class allocations: All income, expenses (other than class-specific expenses), and realized and unrealized gains or losses are allocated daily to each class of shares based on the relative net assets of each class. Class-specific expenses, which include distribution and service fees and any other items that are specifically attributed to a particular class, are also charged directly to such class on a daily basis. |
g) | Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. |
h) | Accounting pronouncement: In December 2011, FASB (the “Financial Accounting Standards Board”) issued ASU (“Accounting Standards Update”) No. 2011-11 related to disclosures about offsetting assets and liabilities. The amendment in this ASU require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The ASU is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The guidance requires retrospective application for all comparative periods presented. Management is currently evaluating the impact this amendment may have on the Fund’s financial statements. |
3. Fees and Related Party Transactions
a) Management Arrangements:
Aquila Investment Management LLC (the “Manager”), a wholly-owned subsidiary of Aquila Management Corporation, the Fund’s founder and sponsor, serves as the Manager for the Fund under an Advisory and Administration Agreement with the Fund. Under the Advisory and Administration Agreement, the Manager provides all investment management and administrative services to the Fund. The Manager’s services include providing the office of the Fund and all related services as well as managing relationships with all the various support organizations to the Fund such as the shareholder servicing agent, custodian, legal counsel, fund accounting agent, auditors and distributor. For its services, the Manager is entitled to receive a fee which is payable monthly and computed as of the close of business each day at the annual rate of 0.50 of 1% on the Fund’s net assets.
30 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS (continued)
DECEMBER 31, 2012 (unaudited)
For the six months ended December 31, 2012, the Fund incurred management fees of $1,121,944 of which $84,670 was waived. The Manager has contractually undertaken to waive fees and/or reimburse Fund expenses so that total Fund expenses will not exceed 0.83% for Class A Shares, 1.63% for Class C Shares, 0.97% for Class I Shares (none of which are currently outstanding) and 0.63% for Class Y Shares. These expense limitations are in effect until October 31, 2013. Prior to October 31, 2013, the Manager may not terminate the arrangement without the approval of the Board of Trustees.
Under a Compliance Agreement with the Manager, the Manager is compensated by the Fund for Chief Compliance Officer related services provided to enable the Fund to comply with Rule 38a-1 of the Investment Company Act of 1940.
Specific details as to the nature and extent of the services provided by the Manager are more fully defined in the Fund’s Prospectus and Statement of Additional Information.
b) Distribution and Service Fees:
The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 (the “Rule”) under the Investment Company Act of 1940. Under one part of the Plan, with respect to Class A Shares, the Fund is authorized to make distribution fee payments to broker-dealers or others (“Qualified Recipients”) selected by Aquila Distributors, Inc. (the “Distributor”) including, but not limited to, any principal underwriter of the Fund, with which the Distributor has entered into written agreements contemplated by the Rule and which have rendered assistance in the distribution and/or retention of the Fund’s shares or servicing of shareholder accounts. The Fund makes payment of this distribution fee at the annual rate of 0.20% of the Fund’s average net assets represented by Class A Shares. For the six months ended December 31, 2012, distribution fees on Class A Shares amounted to $265,313, of which the Distributor retained $7,554.
Under another part of the Plan, the Fund is authorized to make payments with respect to Class C Shares to Qualified Recipients which have rendered assistance in the distribution and/or retention of the Fund’s Class C shares or servicing of shareholder accounts. These payments are made at the annual rate of 0.75% of the Fund’s average net assets represented by Class C Shares and for the six months ended December 31, 2012, amounted to $383,645. In addition, under a Shareholder Services Plan, the Fund is authorized to make service fee payments with respect to Class C Shares to Qualified Recipients for providing personal services and/or maintenance of shareholder accounts. These payments are made at the annual rate of 0.25% of the Fund’s average net assets represented by Class C Shares and for the six months ended December 31, 2012 amounted to $127,882. The total of these payments with respect to Class C Shares amounted to $511,527, of which the Distributor retained $103,955.
Specific details about the Plans are more fully defined in the Fund’s Prospectus and Statement of Additional Information.
Under a Distribution Agreement, the Distributor serves as the exclusive distributor of the Fund’s shares.Through agreements between the Distributor and various brokerage and advisory firms (“intermediaries”), the Fund’s shares are sold primarily through the facilities of these intermediaries having offices within Utah, with the bulk of any sales commissions inuring to such intermediaries. For the six months ended December 31, 2012, total commissions on sales of Class A Shares amounted to $540,406, of which the Distributor received $49,032.
31 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS (continued)
DECEMBER 31, 2012 (unaudited)
4. Purchases and Sales of Securities
During the six months ended December 31, 2012, purchases of securities and proceeds from the sales of securities aggregated $60,420,086 and $46,382,276, respectively.
At December 31, 2012, the aggregate tax cost for all securities was $419,951,344. At December 31, 2012, the aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost amounted to $22,609,695 and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value amounted to $775,769, for a net unrealized appreciation of $21,833,926.
5. Portfolio Orientation
At least 50% of the Fund’s assets will always consist of obligations of Utah-based issuers. At December 31, 2012, the Fund had 64% of its net assets invested in municipal obligations of issuers within Utah. The Fund is also permitted to invest in tax-free municipal obligations of non-Utah-based issuers that are exempt from regular Federal income taxes and, pursuant to an administrative determination of the Utah State Tax Commission issued under statutory authority, the interest on which is currently exempt from Utah individual income taxes. Since the Fund invests principally and may invest entirely in double tax-free municipal obligations of issuers within Utah, it is subject to possible risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Utah and whatever effects these may have upon Utah issuers’ ability to meet their obligations.
6. Expenses
The Fund has negotiated an expense offset arrangement with its custodian wherein it receives credit toward the reduction of custodian fees and other Fund expenses whenever there are uninvested cash balances. The Statement of Operations reflects the total expenses before any offset, the amount of offset and the net expenses.
7. Trustees’ Fees and Expenses
At December 31, 2012 there were 9 Trustees, one of whom is affiliated with the Manager and is not paid any fees. The total amount of Trustees’ service fees (for carrying out their responsibilities) and attendance fees paid during the six months ended December 31, 2012 was $64,904. Attendance fees are paid to those in attendance at regularly scheduled quarterly Board Meetings and meetings of the Independent Trustees held prior to each quarterly Board Meeting, as well as additional meetings (such as Audit, Nominating, Shareholder and special meetings). Trustees are reimbursed for their expenses such as travel, accommodations and meals incurred in connection with attendance at Board Meetings and the Annual Meeting of Shareholders. For the six months ended December 31, 2012, such meeting-related expenses amounted to $16,403.
32 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS (continued)
DECEMBER 31, 2012 (unaudited)
8. Capital Share Transactions
Transactions in Capital Shares of the Fund were as follows:
Six Months Ended December 31, 2012 | Year Ended | |||||||||||||||
(unaudited) | June 30, 2012 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A Shares: | ||||||||||||||||
Proceeds from shares sold | 2,082,573 | $ | 21,698,512 | 7,110,240 | $ | 71,675,930 | ||||||||||
Reinvested distributions | 242,710 | 2,532,483 | 515,800 | 5,202,390 | ||||||||||||
Cost of shares redeemed | (2,704,893 | ) | (28,240,551 | ) | (4,573,928 | ) | (46,002,731 | ) | ||||||||
Net change | (379,610 | ) | (4,009,556 | ) | 3,052,112 | 30,875,589 | ||||||||||
Class C Shares: | ||||||||||||||||
Proceeds from shares sold | 1,485,387 | 15,497,719 | 3,676,797 | 36,925,228 | ||||||||||||
Reinvested distributions | 75,652 | 789,017 | 178,950 | 1,803,826 | ||||||||||||
Cost of shares redeemed | (791,459 | ) | (8,250,180 | ) | (2,945,514 | ) | (29,480,749 | ) | ||||||||
Net change | 769,580 | 8,036,556 | 910,233 | 9,248,305 | ||||||||||||
Class Y Shares: | ||||||||||||||||
Proceeds from shares sold | 1,433,154 | 15,016,314 | 2,978,473 | 30,163,448 | ||||||||||||
Reinvested distributions | 69,794 | 731,347 | 150,033 | 1,518,905 | ||||||||||||
Cost of shares redeemed | (609,394 | ) | (6,375,377 | ) | (1,510,885 | ) | (15,371,268 | ) | ||||||||
Net change | 893,554 | 9,372,284 | 1,617,621 | 16,311,085 | ||||||||||||
Total transactions in Fund | ||||||||||||||||
shares | 1,283,524 | $ | 13,399,284 | 5,579,966 | $ | 56,434,979 |
9. Securities Traded on a When-Issued Basis
The Fund may purchase or sell securities on a when-issued basis. When-issued transactions arise when securities are purchased or sold by the Fund with payment and delivery taking place in the future in order to secure what is considered to be an advantageous price and yield to the Fund at the time of entering into the transaction. Beginning on the date the Fund enters into a when-issued transaction, cash or other liquid securities are segregated in an amount equal to or greater than the value of the when-issued transaction. These transactions are subject to market fluctuations and their current value is determined in the same manner as for other securities.
10. Income Tax Information and Distributions
The Fund declares dividends daily from net investment income and makes payments monthly. Net realized capital gains, if any, are distributed annually and are taxable. These distributions are paid in additional shares at the net asset value per share, in cash, or in a combination of both, at the shareholder’s option.
33 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS (continued)
DECEMBER 31, 2012 (unaudited)
The Fund intends to maintain, to the maximum extent possible, the tax-exempt status of interest payments received from portfolio municipal securities in order to allow dividends paid to shareholders from net investment income to be exempt from regular Federal and State of Utah income taxes. Due to differences between financial statement reporting and Federal income tax reporting requirements, distributions made by the Fund may not be the same as the Fund’s net investment income, and/or net realized securities gains. In this regard, the Fund decreased undistributed net investment income in the amount of $1,756 and increased additional paid-in capital in the amount of $1,756 at June 30, 2012. These adjustments had no impact on the Fund’s aggregate net assets at June 30, 2012. Further, a small portion of the dividends may, under some circumstances, be subject to taxes at ordinary income rates. For certain shareholders some dividend income may, under some circumstances, be subject to the alternative minimum tax. As a result of the passage of the Regulated Investment Company Act of 2010 (“the Act”), losses incurred in this fiscal year and beyond retain their character as short-term or long-term, have no expiration date and are utilized before capital losses incurred prior to the enactment of the Act.
At June 30, 2012, the Fund had a capital loss carryover of $71,455 which expires in 2018. Carryovers are available to offset future net realized gains on securities transactions to the extent provided for in the Internal Revenue Code.
The tax character of distributions:
Year Ended June 30, | ||||||||
2012 | 2011 | |||||||
Net tax-exempt income | $ | 14,072,731 | $ | 15,590,252 | ||||
Ordinary income | 225 | 481,747 | ||||||
$ | 14,072,956 | $ | 16,071,999 |
As of June 30, 2012, the components of distributable earnings on a tax basis were as follows:
Undistributed tax-exempt income | $ | 257,297 | ||
Accumulated net realized loss | (71,455 | ) | ||
Unrealized depreciation | 15,200,927 | |||
Other temporary differences | (257,297 | ) | ||
$ | 15,129,472 |
The difference between book basis and tax basis undistributed income is due to the timing difference in recognizing dividends paid.
11. Ongoing Development
Beginning in December 2007, the three major credit rating agencies (Standard & Poor’s, Moody’s and Fitch) downgraded or eliminated ratings of the municipal bond insurance companies due to loss of capital from investments in subprime mortgages. Only a few insurers are now deemed to be investment grade. Thus, while certain bonds have insurance, some are no longer rated based upon the ratings of their insurers. Furthermore, because the ability of many of the Fund’s insurers to pay claims has been downgraded, the protection of such insurance has been diminished, and there is no assurance that some of them may be relied upon for payment.
34 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
Class A | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
12/31/12 | Year Ended June 30, | |||||||||||||||||||||||
(unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value, beginning of period | $ | 10.27 | $ | 9.74 | $ | 9.80 | $ | 9.35 | $ | 9.73 | $ | 9.91 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income(1) | 0.18 | 0.38 | 0.42 | 0.43 | 0.44 | 0.41 | ||||||||||||||||||
Net gain (loss) on securities (both | ||||||||||||||||||||||||
realized and unrealized) | 0.17 | 0.53 | (0.05 | ) | 0.47 | (0.37 | ) | (0.17 | ) | |||||||||||||||
Total from investment operations | 0.35 | 0.91 | 0.37 | 0.90 | 0.07 | 0.24 | ||||||||||||||||||
Less distributions (note 10): | ||||||||||||||||||||||||
Dividends from net investment income | (0.18 | ) | (0.38 | ) | (0.43 | ) | (0.45 | ) | (0.45 | ) | (0.42 | ) | ||||||||||||
Distributions from capital gains | – | – | – | – | – | – | ||||||||||||||||||
Total distributions | (0.18 | ) | (0.38 | ) | (0.43 | ) | (0.45 | ) | (0.45 | ) | (0.42 | ) | ||||||||||||
Net asset value, end of period | $ | 10.44 | $ | 10.27 | $ | 9.74 | $ | 9.80 | $ | 9.35 | $ | 9.73 | ||||||||||||
Total return (not reflecting sales charge) | 3.37 | %(2) | 9.49 | % | 3.87 | % | 9.74 | % | 0.91 | % | 2.45 | % | ||||||||||||
Ratios/supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $ | 256 | $ | 255 | $ | 212 | $ | 232 | $ | 166 | $ | 158 | ||||||||||||
Ratio of expenses to average net assets | 0.83 | %(3) | 0.83 | % | 0.83 | % | 0.80 | % | 0.75 | % | 0.63 | % | ||||||||||||
Ratio of net investment income to | ||||||||||||||||||||||||
average net assets | 3.33 | %(3) | 3.79 | % | 4.31 | % | 4.43 | % | 4.80 | % | 4.09 | % | ||||||||||||
Portfolio turnover rate | 11 | %(2) | 17 | % | 25 | % | 9 | % | 25 | % | 19 | % | ||||||||||||
The expense and net investment income ratios without the effect of the contractual expense cap were (note 3): | ||||||||||||||||||||||||
Ratio of expenses to average net assets | 0.87 | %(3) | 0.88 | % | 0.87 | % | 0.87 | % | 0.87 | % | 0.90 | % | ||||||||||||
Ratio of net investment income to | ||||||||||||||||||||||||
average net assets | 3.29 | %(3) | 3.74 | % | 4.28 | % | 4.37 | % | 4.68 | % | 3.82 | % | ||||||||||||
The expense ratios after giving effect to the contractual expense cap and expense offset for uninvested cash balances were (note 3): | ||||||||||||||||||||||||
Ratio of expenses to average net assets | 0.83 | %(3) | 0.83 | % | 0.83 | % | 0.80 | % | 0.74 | % | 0.61 | % |
__________________
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements
35 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
FINANCIAL HIGHLIGHTS (continued)
For a share outstanding throughout each period
Class C | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
12/31/12 | Year Ended June 30, | |||||||||||||||||||||||
(unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value, beginning of period | $ | 10.27 | $ | 9.74 | $ | 9.79 | $ | 9.34 | $ | 9.72 | $ | 9.91 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income(1) | 0.13 | 0.30 | 0.34 | 0.35 | 0.37 | 0.33 | ||||||||||||||||||
Net gain (loss) on securities (both | ||||||||||||||||||||||||
realized and unrealized) | 0.17 | 0.53 | (0.04 | ) | 0.47 | (0.37 | ) | (0.18 | ) | |||||||||||||||
Total from investment operations | 0.30 | 0.83 | 0.30 | 0.82 | – | 0.15 | ||||||||||||||||||
Less distributions (note 10): | ||||||||||||||||||||||||
Dividends from net investment income | (0.13 | ) | (0.30 | ) | (0.35 | ) | (0.37 | ) | (0.38 | ) | (0.34 | ) | ||||||||||||
Distributions from capital gains | – | – | – | – | – | – | ||||||||||||||||||
Total distributions | (0.13 | ) | (0.30 | ) | (0.35 | ) | (0.37 | ) | (0.38 | ) | (0.34 | ) | ||||||||||||
Net asset value, end of period | $ | 10.44 | $ | 10.27 | $ | 9.74 | $ | 9.79 | $ | 9.34 | $ | 9.72 | ||||||||||||
Total return (not reflecting CDSC) | 2.95 | %(2) | 8.62 | % | 3.15 | % | 8.87 | % | 0.10 | % | 1.53 | % | ||||||||||||
Ratios/supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $ | 106 | $ | 96 | $ | 83 | $ | 89 | $ | 50 | $ | 32 | ||||||||||||
Ratio of expenses to average net assets | 1.63 | %(3) | 1.63 | % | 1.63 | % | 1.60 | % | 1.55 | % | 1.43 | % | ||||||||||||
Ratio of net investment income to | ||||||||||||||||||||||||
average net assets | 2.52 | %(3) | 2.98 | % | 3.51 | % | 3.60 | % | 3.99 | % | 3.29 | % | ||||||||||||
Portfolio turnover rate | 11 | %(2) | 17 | % | 25 | % | 9 | % | 25 | % | 19 | % | ||||||||||||
The expense and net investment income ratios without the effect of the contractual expense cap were (note 3): | ||||||||||||||||||||||||
Ratio of expenses to average net assets | 1.66 | %(3) | 1.68 | % | 1.67 | % | 1.66 | % | 1.67 | % | 1.70 | % | ||||||||||||
Ratio of net investment income to | ||||||||||||||||||||||||
average net assets | 2.49 | %(3) | 2.93 | % | 3.48 | % | 3.54 | % | 3.88 | % | 3.02 | % | ||||||||||||
The expense ratios after giving effect to the contractual expense cap and expense offset for uninvested cash balances were (note 3): | ||||||||||||||||||||||||
Ratio of expenses to average net assets | 1.62 | %(3) | 1.63 | % | 1.63 | % | 1.60 | % | 1.54 | % | 1.42 | % |
__________________
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
36 | Tax-Free Fund For Utah
TAX-FREE FUND FOR UTAH
FINANCIAL HIGHLIGHTS (continued)
For a share outstanding throughout each period
Class Y | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
12/31/12 | Year Ended June 30, | |||||||||||||||||||||||
(unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value, beginning of period | $ | 10.30 | $ | 9.77 | $ | 9.83 | $ | 9.38 | $ | 9.76 | $ | 9.94 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income(1) | 0.19 | 0.40 | 0.44 | 0.45 | 0.46 | 0.43 | ||||||||||||||||||
Net gain (loss) on securities (both | ||||||||||||||||||||||||
realized and unrealized) | 0.17 | 0.53 | (0.05 | ) | 0.47 | (0.37 | ) | (0.17 | ) | |||||||||||||||
Total from investment operations | 0.36 | 0.93 | 0.39 | 0.92 | 0.09 | 0.26 | ||||||||||||||||||
Less distributions (note 10): | ||||||||||||||||||||||||
Dividends from net investment income | (0.19 | ) | (0.40 | ) | (0.45 | ) | (0.47 | ) | (0.47 | ) | (0.44 | ) | ||||||||||||
Distributions from capital gains | – | – | – | – | – | – | ||||||||||||||||||
Total distributions | (0.19 | ) | (0.40 | ) | (0.45 | ) | (0.47 | ) | (0.47 | ) | (0.44 | ) | ||||||||||||
Net asset value, end of period | $ | 10.47 | $ | 10.30 | $ | 9.77 | $ | 9.83 | $ | 9.38 | $ | 9.76 | ||||||||||||
Total return (not reflecting CDSC) | 3.46 | %(2) | 9.69 | % | 4.08 | % | 9.94 | % | 1.13 | % | 2.67 | % | ||||||||||||
Ratios/supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $ | 86 | $ | 76 | $ | 56 | $ | 59 | $ | 44 | $ | 49 | ||||||||||||
Ratio of expenses to average net assets | 0.63 | %(3) | 0.63 | % | 0.63 | % | 0.60 | % | 0.55 | % | 0.43 | % | ||||||||||||
Ratio of net investment income to | ||||||||||||||||||||||||
average net assets | 3.52 | %(3) | 3.98 | % | 4.51 | % | 4.64 | % | 5.00 | % | 4.29 | % | ||||||||||||
Portfolio turnover rate | 11 | %(2) | 17 | % | 25 | % | 9 | % | 25 | % | 19 | % | ||||||||||||
The expense and net investment income ratios without the effect of the contractual expense cap were (note 3): | ||||||||||||||||||||||||
Ratio of expenses to average net assets | 0.67 | %(3) | 0.68 | % | 0.67 | % | 0.67 | % | 0.67 | % | 0.70 | % | ||||||||||||
Ratio of net investment income to | ||||||||||||||||||||||||
average net assets | 3.49 | %(3) | 3.93 | % | 4.47 | % | 4.57 | % | 4.88 | % | 4.02 | % | ||||||||||||
The expense ratios after giving effect to the contractual expense cap and expense offset for uninvested cash balances were (note 3): | ||||||||||||||||||||||||
Ratio of expenses to average net assets | 0.63 | %(3) | 0.63 | % | 0.63 | % | 0.60 | % | 0.54 | % | 0.42 | % |
__________________
(1) Per share amounts have been calculated using the daily average shares method.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
37 | Tax-Free Fund For Utah
Analysis of Expenses (unaudited)
As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including front-end sales charges with respect to Class A shares or contingent deferred sales charges (“CDSC”) with respect to Class C shares; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. The table below is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The table below is based on an investment of $1,000 invested on July 1, 2012 and held for the six months ended December 31, 2012.
Actual Expenses
This table provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During the Period”.
Six months ended December 31, 2012
Actual | ||||
Total Return | Beginning | Ending | Expenses | |
Without | Account | Account | Paid During | |
Sales Charges(1) | Value | Value | the Period(2) | |
Class A | 3.37% | $1,000.00 | $1,033.70 | $4.25 |
Class C | 2.95% | $1,000.00 | $1,029.50 | $8.29 |
Class Y | 3.46% | $1,000.00 | $1,034.60 | $3.23 |
(1) | Assumes reinvestment of all dividends and capital gain distributions, if any, at net asset value and does not reflect the deduction of the applicable sales charges with respect to Class A shares or the applicable CDSC with respect to Class C shares. Total return is not annualized, as it may not be representative of the total return for the year. |
(2) | Expenses are equal to the annualized expense ratio of 0.83%, 1.62% and 0.63% for the Fund’s Class A, C and Y shares, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
38 | Tax-Free Fund For Utah
Analysis of Expenses (unaudited) (continued)
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5.00% 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 the information provided in this table to compare the ongoing costs of investing in the Fund and other mutual funds. To do so, compare this 5.00% hypothetical example relating to the Fund with the 5.00% hypothetical examples that appear in the shareholder reports of other mutual funds.
Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs with respect to Class A shares. The example does not reflect the deduction of CDSC with respect to Class C shares. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different mutual funds. In addition, if these transaction costs were included, your costs would have been higher.
Six months ended December 31, 2012
Hypothetical | ||||
Annualized | Beginning | Ending | Expenses | |
Total | Account | Account | Paid During | |
Return | Value | Value | the Period(1) | |
Class A | 5.00% | $1,000.00 | $1,021.02 | $4.23 |
Class C | 5.00% | $1,000.00 | $1,017.04 | $8.24 |
Class Y | 5.00% | $1,000.00 | $1,022.03 | $3.21 |
(1) | Expenses are equal to the annualized expense ratio of 0.83%, 1.62% and 0.63% for the Fund’s Class A, C and Y shares, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
39 | Tax-Free Fund For Utah
Shareholder Meeting Results (unaudited)
The Annual Meeting of Shareholders of Tax-Free Fund For Utah (the “Fund”) was held on October 2, 2012. The holders of shares representing 92% of the total net asset value of the shares entitled to vote were present in person or by proxy. At the meeting, the following matters were voted upon and approved by the shareholders (the resulting votes for each matter are presented below).
1. | To elect Trustees. |
Dollar Amount of Votes: | ||
Trustee | For | Withheld |
Tucker Hart Adams | $398,645,419 | $2,301,762 |
Ernest Calderón | $399,985,137 | $ 962,044 |
Thomas A. Christopher | $399,916,409 | $1,030,772 |
Gary C. Cornia | $400,305,916 | $ 641,265 |
Grady Gammage, Jr. | $399,912,780 | $1,034,401 |
Diana P. Herrmann | $398,910,315 | $2,036,866 |
Lyle W. Hillyard | $399,549,905 | $1,397,275 |
John C. Lucking | $399,870,282 | $1,076,899 |
Anne J. Mills | $397,998,679 | $2,948,502 |
2. | To ratify the selection of Tait, Weller & Baker LLP as the Fund’s independent registered public accounting firm. |
Dollar Amount of Votes: | ||
For | Against | Abstain |
$398,571,344 | $897,669 | $1,478,168 |
40 | Tax-Free Fund For Utah
Information Available (unaudited)
Much of the information that the funds in the Aquila Group of Funds produce is automatically sent to you and all other shareholders. Specifically, you are routinely sent your Fund’s entire list of portfolio securities twice a year in the semi-annual and annual reports you receive. Additionally, under Fund policies, the Manager publicly discloses the complete schedule of the Fund’s portfolio holdings, as of each calendar quarter, generally by the 15th day after the end of each calendar quarter. Such information remains accessible until the next schedule is made publicly available. You may obtain a copy of the Fund’s portfolio holdings schedule for the most recently completed period by visiting the Fund’s website at www.aquilafunds.com. The Fund may also disclose other portfolio holdings as of a specified date (currently the Fund discloses its five largest holdings and/or sector holdings by value as of the close of the last business day of each calendar month in a posting to its website on approximately the 5th business day following the month end). This information remains on the website until the next such posting. Whenever you wish to see a listing of your Fund’s portfolio other than in your shareholder reports, please check our website at www.aquilafunds.com or call us at 1-800-437-1020.
The Fund additionally files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available free of charge on the SEC website at www.sec.gov. You may also review or, for a fee, copy the forms at the SEC’s Public Reference Room in Washington, D.C. or by calling 1-800-SEC-0330.
Proxy Voting Record (unaudited)
The Fund does not invest in equity securities. Accordingly, there were no matters relating to a portfolio security considered at any shareholder meeting held during the 12 months ended June 30, 2012 with respect to which the Fund was entitled to vote. Applicable regulations require us to inform you that the foregoing proxy voting information is available on the SEC website at www.sec.gov.
Federal Tax Status of Distributions (unaudited)
This information is presented in order to comply with a requirement of the Internal Revenue Code. No action on the part of shareholders is required.
For the fiscal year ended June 30, 2012, $14,072,731 of dividends paid by Tax-Free Fund For Utah, constituting 99.998% of total dividends paid during fiscal 2012, were exempt-interest dividends, and the balance was ordinary dividend income.
Prior to February 15, 2013, shareholders will be mailed the appropriate tax form(s) which will contain information on the status of distributions paid for the 2012 calendar year.
41 | Tax-Free Fund For Utah
Additional information (unaudited)
Renewal of the Advisory and Administration Agreement
Aquila Investment Management LLC (the “Manager”) serves as the investment adviser to the Fund pursuant to an Advisory and Administration Agreement (the “Advisory Agreement”). In order for the Manager to remain the investment adviser of the Fund, the Trustees of the Fund must determine annually whether to renew the Advisory Agreement for the Fund.
Contract review materials were provided to the Trustees in November 2012. The independent Trustees met telephonically in November, 2012 and in person in December, 2012 to review and discuss the contract review materials. In addition, the Trustees took into account the information related to the Fund provided to the Trustees at each regularly scheduled meeting.
At a meeting held in December, 2012, based on their evaluation of the information provided by the Manager, the Trustees of the Fund, including the independent Trustees voting separately, unanimously approved the renewal of the Advisory Agreement until December 31, 2013. In considering the renewal of the Advisory Agreement, the Trustees considered various factors that they determined were relevant, including the factors described below. The Trustees did not identify any single factor as the controlling factor in determining to approve the renewal of the Advisory Agreement.
The nature, extent, and quality of the services provided by the Manager.
The Trustees considered the nature, extent and quality of the services that had been provided by the Manager to the Fund, taking into account the investment objectives and strategies of the Fund. The Trustees reviewed the terms of the Advisory Agreement. The Trustees also reviewed the Manager’s investment approach for the Fund and its research process. The Trustees considered the personnel of the Manager who provide investment management services to the Fund. The Manager has employed Mr. Todd W. Curtis and Mr. James Thompson as co-portfolio managers for the Fund and has established facilities for credit analysis of the Fund’s portfolio securities. Mr. Thompson, based in Salt Lake City, Utah, has provided local information regarding specific holdings in the Fund’s portfolio, a particular advantage as to holdings with less than the highest ratings from the rating agencies.
The Trustees considered that the Manager had provided all advisory and administrative services to the Fund that the Trustees deemed necessary or appropriate, including the specific services that the Trustees have determined are required for the Fund, given that it seeks to provide shareholders with as high a level of current income exempt from Utah state and regular Federal income taxes as is consistent with preservation of capital.
The Manager has additionally provided all administrative services to the Fund and provided the Fund with personnel (including Fund officers) and other resources that are necessary for the Fund’s business management and operations. The Trustees considered the nature and extent of the Manager’s supervision of third-party service providers, including the Fund’s shareholder servicing agent and custodian.
Based on these considerations, the Trustees concluded that the nature, extent and quality of services that had been provided by the Manager to the Fund were satisfactory and consistent with the terms of the Advisory Agreement.
42 | Tax-Free Fund For Utah
The investment performance of the Fund and the Manager.
The Trustees reviewed each aspect of the Fund’s performance and compared its performance with that of its competitors (as identified by the Manager), its peer group (i.e., Morningstar single-state intermediate tax-free municipal bond funds nationwide), and its benchmark index, the Barclays Capital Quality Intermediate Municipal Bond Index. It was noted that the Fund’s performance generally exceeded the performance of its Morningstar peer group and its benchmark index. It also was noted that the Fund outperformed its competitors in certain periods and underperformed its competitors in certain other periods. The Trustees considered that the Fund’s returns were generally less volatile than some of its competitors. The Trustees discussed the Fund’s performance record with the Manager and considered the Manager’s view that the Fund’s performance, as compared to its competitors, was explained in part by the Fund’s generally higher-quality portfolio, its historical intermediate maturity structure and shorter call provisions, which limits price appreciation. The Trustees noted that, unlike the Fund’s returns, the performance of the benchmark index did not reflect any fees, expenses or sales charges. The Trustees also noted that the Fund was the only Utah state-specific tax-free municipal bond fund in the State. In addition, the group of competitive funds included funds whose investment objectives and risk profiles differed from that of the Fund. The Trustees considered the Fund’s performance results to be consistent with the investment objectives of the Fund.
The Trustees concluded that the performance of the Fund was acceptable in light of market conditions, the length of its average maturities, its portfolio quality, its investment objectives, and the long-standing effort of the Manager to minimize risk, observing that the Fund’s Sharpe and Treynor ratios, which measure risk-adjusted return, were generally more favorable than those of the Fund’s competitors. Evaluation of this factor indicated to the Trustees that renewal of the Advisory Agreement would be appropriate.
The costs of the services to be provided and profits to be realized by the Manager and its affiliates from the relationship with the Fund.
The information provided by the Manager in connection with the renewal contained advisory fee and expense data for the Fund and its competitors (as identified by the Manager) and all single state municipal bond funds, as well as data for its Morningstar peer group, including data for all such front-end sales charge funds of a comparable asset size. The materials also showed the profitability to the Manager and to Aquila Distributors, Inc. (the “Distributor”) of its services to the Fund.
The Board noted that the Manager was currently waiving a portion of its fees and had been since the Fund’s inception. Additionally, it was noted that the Manager had contractually undertaken to waive fees and/or reimburse Fund expenses during the period October 16, 2012 through December 31, 2013 so that total Fund expenses would not exceed 0.83 of 1% for Class A Shares. The Manager had indicated that it intended to continue waiving fees as necessary in order that the Fund would remain competitive.
The Trustees compared the advisory fee and expense data with respect to the Fund to similar data about other funds that they found to be relevant. The Trustees concluded that the advisory fee and expenses of the Fund were similar to and were reasonable as compared to those advisory fees and expenses being paid by the Fund’s Morningstar peer group and that the advisory fee was reasonable in relation to the nature and quality of the services provided by the Manager to the Fund.
43 | Tax-Free Fund For Utah
The Trustees considered information provided by the Manager regarding the profitability of the Manager with respect to the advisory services provided by the Manager to the Fund, including the methodology used by the Manager in allocating certain of its costs to the management of the Fund. The Trustees also considered information regarding the profitability of the Distributor with respect to distribution services provided to the Fund. The Trustees concluded that profitability to the Manager with respect to the advisory services provided to the Fund did not argue against approval of the fees to be paid under the Advisory Agreement.
The extent to which economies of scale would be realized as the Fund grows.
The Trustees considered the extent to which the Manager may realize economies of scale or other efficiencies in managing the Fund. It was noted that as assets increase certain fixed costs may be spread across a larger asset base, and it was noted that any economies of scale or other efficiencies might be realized (if at all) across a variety of products and services and not only in respect of the Fund. The Trustees considered that the materials indicated that the Fund’s fees, after fee waivers, were generally competitive with those of its peers, including those with breakpoints in the advisory fee schedule. Additionally, the Trustees noted that the Manager continued to waive a portion of its fees. The Trustees noted that the Manager’s profitability also may be an indicator of the availability of any economies of scale. Accordingly, the Trustees concluded that economies of scale, if any, were being appropriately shared with the Fund. Evaluation of these factors indicated to the Trustees that the Advisory Agreement should be renewed without addition of breakpoints at this time.
Benefits derived or to be derived by the Manager and its affiliates from the relationship with the Fund.
The Trustees observed that, as is generally true of most fund complexes, the Manager and its affiliates, by providing services to a number of funds including the Fund, were able to spread costs as they would otherwise be unable to do. The Trustees noted that while that produces efficiencies and increased profitability for the Manager and its affiliates, it also makes their services available to the Fund at favorable levels of quality and cost which are more advantageous to the Fund than would otherwise have been possible.
44 | Tax-Free Fund For Utah
Founders
Lacy B. Herrmann (1929-2012)
Aquila Management Corporation, Sponsor
Manager
AQUILA INVESTMENT MANAGEMENT LLC
380 Madison Avenue, Suite 2300
New York, New York 10017
Board of Trustees
Gary C. Cornia, Chair
Tucker Hart Adams
Ernest Calderón
Thomas A. Christopher
Grady Gammage, Jr.
Diana P. Herrmann
Lyle W. Hillyard
John C. Lucking
Anne J. Mills
Officers
Diana P. Herrmann, President
Charles E. Childs, III, Executive Vice President and Secretary
Marie E. Aro, Senior Vice President
Paul G. O’Brien, Senior Vice President
Todd W. Curtis, Vice President and Co-Portfolio Manager
James T. Thompson, Vice President and Co-Portfolio Manager
M. Kayleen Willis, Vice President
Randall S. Fillmore, Chief Compliance Officer
Joseph P. DiMaggio, Chief Financial Officer and Treasurer
Distributor
AQUILA DISTRIBUTORS, INC.
380 Madison Avenue, Suite 2300
New York, New York 10017
Transfer and Shareholder Servicing Agent
BNY MELLON
4400 Computer Drive
Westborough, Massachusetts 01581
Custodian
JPMORGAN CHASE BANK, N.A.
1111 Polaris Parkway
Columbus, Ohio 43240
Further information is contained in the Prospectus,
which must precede or accompany this report.
ITEM 2. | CODE OF ETHICS. |
No applicable.
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
No applicable.
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
ITEM 6. | SCHEDULE OF INVESTMENTS. |
Included in Item 1 above
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENTCOMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
The Board of Directors of the Registrant has adopted a Nominating Committee Charter which provides that the Nominating Committee (the 'Committee') may consider and evaluate nominee candidates properly submitted by shareholders if a vacancy among the Independent Trustees of the Registrant occurs and if, based on the Board's then current size, composition and structure, the Committee determines that the vacancy should be filled. The Committee will consider candidates submitted by shareholders on the same basis as it considers and evaluates candidates recommended by other sources. A copy of the qualifications and procedures that must be met or followed by shareholders to properly submit a nominee candidate to the Committee may be obtained by submitting a request in writing to the Secretary of the Registrant.
ITEM 11. | CONTROLS AND PROCEDURES. |
(a) Based on their evaluation of the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) as of a date within 90 days of the filing of this report, the registrant's chief financial and executive officers have concluded that the disclosure controls and procedures of the registrant are appropriately designed to ensure that information required to be disclosed in the registrant's reports that are filed under the Securities Exchange Act of 1934 are accumulated and communicated to registrant's management, including its principal executive officer(s) and principal financial officer(s), to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the Securities and Exchange Commission.
(b) There have been no significant changes in registrant's internal controls or in other factors that could significantly affect registrant's internal controls subsequent to the date of the most recent evaluation, including no significant deficiencies or material weaknesses that required corrective action.
ITEM 12. | EXHIBITS. |
(a)(2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of
1940.
(b) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
TAX-FREE FUND FOR UTAH
By: | /s/ Diana P. Herrmann | |
President and Trustee March 4 , 2013 | ||
By: | /s/ Joseph P. DiMaggio | |
Chief Financial Officer and Treasurer March 4 , 2013 |
Pursuant to the requirements of the Securities Exchange Act of 1934 And the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Diana P. Herrmann | |
Diana P. Herrmann President and Trustee March 4 , 2013 | ||
By: | /s/ Joseph P. DiMaggio | |
Joseph P. DiMaggio Chief Financial Officer and Treasurer March 4 , 2013 |
TAX-FREE FUND FOR UTAH
EXHIBIT INDEX
(a) (2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(b) Certification of chief executive officer and chief financial officer as required by Rule 30a-2(b) of the Investment Company Act
of 1940.