UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-6239
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
Date of reporting period: 12/31/04
FORM N-CSR
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMI-ANNUAL
REPORT
DECEMBER 31, 2004
[Logo of Tax-Free Fund for Utah: a rectangle containing desert boulders
with the sun rising behind them]
TAX-FREE FUND FOR
UTAH
A TAX-FREE INCOME INVESTMENT
[Logo of the Aquila Group of Funds: an eagle's head]
ONE OF THE
AQUILA(SM) GROUP OF FUNDS
[Logo of the Aquila Group of Funds: an eagle's head]
AQUILA(SM)
GROUP OF FUNDS
SERVING UTAH INVESTORS
FOR MORE THAN A DECADE
TAX-FREE FUND
FOR UTAH
----------
380 MADISON AVENUE, SUITE 2300 o NEW YORK, NY 10017
800-437-1020 o 212-697-6666
[Logo of Tax-Free Fund for Utah: a rectangle containing desert boulders
with the sun rising behind them]
SEMI-ANNUAL REPORT
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS
DECEMBER 31, 2004
(unaudited)
RATING
FACE MOODY'S/
AMOUNT GENERAL OBLIGATION BONDS (17.3%) S&P VALUE
- ------------ --------------------------------------------------------- --------- -------------
CITY, COUNTY AND STATE (5.3%)
American Fork City, Utah
$ 610,000 5.00%, 12/01/14 FGIC Insured ............................ Aaa/NR $ 647,186
645,000 5.00%, 12/01/15 FGIC Insured ............................ Aaa/NR 684,319
Brian Head, Utah
405,000 6.50%, 03/15/24 ......................................... NR/NR* 475,498
Brian Head, Utah
530,000 5.00%, 08/01/19 XLCA Insured ........................... Aaa/NR 568,303
Cedar City, Utah Special Improvement District
Assessment
235,000 5.05%, 09/01/10 ......................................... NR/NR* 244,830
215,000 5.20%, 09/01/11 ......................................... NR/NR* 225,703
Clearfield City, Utah
2,095,000 5.125%, 02/01/18 MBIA Insured ........................... Aaa/AAA 2,181,503
Coral Canyon, Utah Special Service District
580,000 5.70%, 07/15/18 ......................................... NR/NR* 604,093
Hurricane, Utah
295,000 5.40%, 11/01/09 Radian Insured .......................... NR/AA 325,022
St. George, Utah
100,000 5.375%, 08/01/21 FGIC Insured (pre-refunded) ........... Aaa/AAA 108,605
Salt Lake City, Utah
120,000 5.75%, 06/15/17 (pre-refunded) .......................... Aaa/NR 137,303
Washington County, Utah
1,250,000 5.00%, 10/01/22 MBIA Insured ........................... Aaa/NR 1,321,337
-------------
Total City, County and State 7,523,702
-------------
SCHOOL DISTRICT (12.0%)
Alpine, Utah School District
375,000 5.00%, 03/15/12 (pre-refunded) ......................... Aaa/NR 418,721
Carbon County, Utah School District
800,000 5.00%, 06/15/21 ......................................... Aaa/NR 840,856
Dallas, Texas Independent School District
2,500,000 5.00%, 8/15/29 .......................................... Aaa/AAA 2,567,075
Davis County, Utah School District
575,000 5.00%, 06/01/15 ......................................... Aaa/NR 621,989
250,000 5.10%, 06/01/16 ......................................... Aaa/NR 273,330
675,000 5.15%, 06/01/17 ......................................... Aaa/NR 737,870
Nebo, Utah School District
440,000 5.50%, 07/01/11 ......................................... Aaa/AAA 491,982
2,000,000 5.50%, 07/01/19 ......................................... Aaa/AAA 2,202,380
RATING
FACE MOODY'S/
AMOUNT GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE
- ------------ --------------------------------------------------------- --------- -------------
SCHOOL DISTRICT (CONTINUED)
North Summit County, Utah School District
$ 760,000 5.00%, 02/01/23 ......................................... Aaa/NR $ 803,806
800,000 5.00%, 02/01/24 ......................................... Aaa/NR 840,336
Rich County, Utah School District
120,000 5.50%, 12/15/09 ......................................... NR/NR* 123,292
100,000 5.60%, 12/15/10 ......................................... NR/NR* 102,076
Salt Lake City, Utah School District
265,000 5.00%, 03/01/21 ......................................... Aaa/NR 279,816
Washington County, Utah
440,000 5.00%,10/01/18 XLCA Insured ............................ Aaa/NR 474,439
465,000 5.00%,10/01/19 XLCA Insured ............................ Aaa/NR 501,010
490,000 5.00%,10/01/20 XLCA Insured ............................ Aaa/NR 525,496
510,000 5.00%,10/01/21 XLCA Insured ............................ Aaa/NR 543,563
535,000 5.00%,10/01/22 XLCA Insured ............................ Aaa/NR 567,571
565,000 5.00%,10/01/23 XLCA Insured ............................ Aaa/NR 597,544
320,000 5.00%,10/01/24 XLCA Insured ............................ Aaa/NR 336,349
Weber County, Utah School District
750,000 5.00%, 06/15/18 ......................................... Aaa/NR 799,238
825,000 5.00%, 06/15/20 ......................................... Aaa/NR 885,448
Weber County, Utah School District Series B
1,485,000 5.00%, 06/15/21 ......................................... Aaa/NR 1,560,839
-------------
Total School District 17,095,026
-------------
Total General Obligation Bonds 24,618,728
-------------
REVENUE BONDS (80.3%)
EDUCATION (11.5%)
Laredo, Texas Independent School District Public
Facilty Corp.
190,000 5.00%, 8/01/24 AMBAC Insured ............................ Aaa/AAA 196,988
St. Joseph County, Indiana Educational Facilities
Revenue
100,000 5.00%, 3/01/27 .......................................... Aaa/NR 101,538
Salt Lake County, Utah Westminster College Project
115,000 5.05%, 10/01/10 ......................................... NR/BBB 122,859
100,000 5.50%, 10/01/19 ......................................... NR/BBB 103,924
1,000,000 5.75%, 10/01/27 ......................................... NR/BBB 1,037,240
Southern Utah University Revenue
375,000 6.30%, 06/01/16 ......................................... NR/NR* 389,366
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ --------------------------------------------------------- --------- -------------
EDUCATION (CONTINUED)
University of Utah Revenue Refunding, (Biology
Research Facilities),
$ 200,000 5.50%, 04/01/11 MBIA Insured ............................ Aaa/AAA $ 209,432
Utah State Board Regents Dixie State College
115,000 5.50%, 05/01/13 MBIA Insured ............................ Aaa/AAA 129,975
120,000 5.50%, 05/01/14 MBIA Insured ............................ Aaa/AAA 135,626
130,000 5.50%, 05/01/15 MBIA Insured ............................ Aaa/AAA 147,018
400,000 5.10%, 05/01/21 MBIA Insured ............................ Aaa/AAA 423,244
Utah State Board Regents Office Facility Revenue
450,000 5.05%, 02/01/20 MBIA Insured ............................ Aaa/AAA 475,718
360,000 5.125%, 02/01/22 MBIA Insured ........................... Aaa/AAA 381,312
Utah State Board Regents Salt Lake Community College
1,260,000 5.50%, 06/01/16 FSA Insured ............................. Aaa/AAA 1,404,976
Utah State Board Regents University Utah-Auxiliary
& Campus Revenue
895,000 5.25%, 04/01/12 MBIA Insured ........................... Aaa/AAA 979,345
1,015,000 5.00%, 04/01/20 MBIA Insured ........................... Aaa/AAA 1,053,753
Utah State Board Regents University Utah Hospital
Revenue
1,055,000 5.50%, 08/01/16 FSA Insured ............................. Aaa/AAA 1,177,897
2,030,000 5.50%, 08/01/17 MBIA Insured ............................ Aaa/AAA 2,262,679
905,000 5.00%, 05/01/19 AMBAC Insured ........................... Aaa/AAA 965,834
3,595,000 5.00%, 08/01/19 MBIA Insured ............................ Aaa/AAA 3,792,366
Weber State University, Utah Revenue
100,000 5.25%,04/01/24 FSA Insured .............................. NR/AAA 106,402
Weber State University, Utah Revenue Student
Facilities System Series A
300,000 5.10%, 04/01/16 ......................................... NR/AA 323,718
425,000 5.25%, 04/01/19 ......................................... NR/AA 464,746
-------------
Total Education 16,385,956
-------------
HEALTHCARE (2.5%)
Murray City, Utah Hospital Revenue
595,000 5.00%, 05/15/22 MBIA Insured ........................... Aaa/AAA 608,518
Salt Lake County, Utah Hospital Revenue - IHC
Hospitals, Inc.
500,000 5.50%, 05/15/13 AMBAC Insured .......................... Aaa/AAA 559,055
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ --------------------------------------------------------- --------- -------------
HEALTHCARE (CONTINUED)
Utah County, Utah Hospital Revenue, IHC Health
Services
$ 1,935,000 5.25%, 08/15/21 MBIA Insured ETM ...................... Aaa/AAA $ 2,033,917
Utah State Board Regents Revenue University Utah
Hospital Revenue
310,000 5.00%, 08/01/21 MBIA Insured ............................ Aaa/AAA 324,647
-------------
Total Healthcare 3,526,137
-------------
HOUSING (3.5%)
Provo City, Utah Housing Authority
500,000 5.80%, 07/20/22 GNMA Collateralized ..................... Aaa/NR 520,795
Utah Housing Corporation Single Family Housing
70,000 5.25%, 07/01/23 AMT ..................................... Aa2/AA 71,104
Utah Housing Corporation Single Family Mortgage
375,000 5.15%, 07/01/23 AMT ................................... Aaa/AAA 378,773
Utah State Housing Agency Housing Revenue
155,000 5.65%, 07/01/27 AMT .................................... Aa2/AA 160,437
Utah State Housing Corporation Single Family
Housing Revenue
950,000 5.125%, 07/01/24 AMT .................................... Aa3/AA- 961,410
Utah State Housing Finance Agency
20,000 6.35%, 07/01/12 AMBAC Insured AMT ..................... Aaa/AAA 20,102
10,000 6.15%, 07/01/16 Senior Issue A-1 ........................ Aaa/AAA 10,290
150,000 5.30%, 07/01/18 AMT .................................... Aaa/AAA 153,603
120,000 5.00%, 07/01/18 AMT .................................... Aaa/AAA 122,422
320,000 5.40%, 07/01/20 AMT .................................... Aa2/AA 328,989
5,000 6.60%, 07/01/11 Series E-1 .............................. NR/AA 5,011
25,000 6.35%, 07/01/11 Mezzanine Series G-1 .................... AAA/NR 25,125
205,000 5.65%, 07/01/16 Series 1994C ............................ Aaa/AAA 211,341
80,000 5.40%, 07/01/16 AMT .................................... Aa2/AA 81,372
135,000 6.00%, 07/01/17 AMT .................................... Aaa/AAA 138,999
930,000 5.50%, 07/01/18 AMT .................................... Aa3/AA- 969,376
440,000 5.60%, 07/01/23 AMT .................................... Aa2/AA 451,238
West Jordan, Utah Multi-Family Housing
360,000 6.80%, 01/01/15 FSA Insured ............................. Aaa/AAA 360,000
-------------
Total Housing 4,970,387
-------------
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ --------------------------------------------------------- --------- -------------
INDUSTRIAL DEVELOPMENT & POLLUTION CONTROL (0.5%)
Sandy City, Utah Industrial Development, H Shirley
Wright Project,Refunding Bonds,
LOC Olympus Bank
$ 250,000 6.125%, 08/01/16 ........................................ NR/AAA $ 253,332
Utah County Environmental Improvement Revenue
435,000 5.05%, 11/01/17 ......................................... Baa1/BBB+ 476,560
-------------
Total Industrial Development & Pollution Control 729,892
-------------
LEASE (10.5%)
Lehi, Utah Municipal Building Lease Revenue,
Building Revenue
1,020,000 5.50%, 06/15/15 AMBAC Insured ........................... Aaa/NR 1,154,303
Murray City, Utah Municipal Building Revenue
520,000 5.05%, 12/01/15 AMBAC Insured ........................... Aaa/NR 562,749
Salt Lake County, Utah Municipal Building
Authority, Lease Revenue
400,000 5.00%, 10/01/11 MBIA Insured (pre-refunded) ............ Aaa/AAA 439,460
100,000 5.40%, 10/01/19 (pre-refunded) ......................... Aa1/AA+ 111,553
320,000 5.40%, 10/15/19 AMBAC Insured .......................... Aaa/AAA 352,797
3,900,000 5.20%, 10/15/20 AMBAC Insured .......................... Aaa/AAA 4,172,805
Sandy City, Utah Municipal Building Authority
700,000 5.60%, 06/15/15 AMBAC Insured ........................... Aaa/NR 795,676
Tooele City, Utah Municipal Building Lease Revenue
250,000 5.60%, 12/01/15 AMBAC Insured .......................... Aaa/AAA 279,075
Utah County, Utah Municipal Building Authority,
Lease Revenue
120,000 5.50%, 11/01/16 AMBAC Insured .......................... Aaa/NR 134,062
240,000 5.50%, 11/01/17 AMBAC Insured .......................... Aaa/NR 267,660
Utah State Building Ownership Authority
1,350,000 5.25%, 05/15/20 FSA Insured ............................ Aaa/AAA 1,476,684
1,080,000 5.00%, 05/15/25 ......................................... Aa1/AA+ 1,130,069
Washington County - Saint George, Utah Interlocal
Agency Revenue
1,000,000 5.125%, 12/01/17 AMBAC Insured .......................... NR/AAA 1,060,660
100,000 5.125%, 12/01/22 AMBAC Insured .......................... NR/AAA 106,480
Weber County, Utah Municipal Building Lease Revenue
1,500,000 5.75%, 12/15/19 MBIA Insured ............................ Aaa/AAA 1,642,935
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ --------------------------------------------------------- --------- -------------
LEASE (CONTINUED)
West Bountiful, Utah Courthouse Revenue
$ 410,000 5.00%, 05/01/19 ......................................... NR/A- $ 446,396
West Valley City, Utah
865,000 5.00%, 08/01/21 AMBAC Insured ........................... Aaa/AAA 911,182
-------------
Total Lease 15,044,546
-------------
TAX REVENUE (29.5%)
Bluffdale, Utah Sales Tax Revenue
2,110,000 5.50%, 08/01/23 ......................................... NR/NR* 2,233,963
Bluffdale City, Utah Series 2004
310,000 6.00%, 12/01/14 ......................................... NR/NR* 310,329
330,000 6.00%, 12/01/15 ......................................... NR/NR* 330,350
350,000 6.00%, 12/01/16 ......................................... NR/NR* 350,371
370,000 6.00%, 12/01/17 ......................................... NR/NR* 370,392
395,000 6.00%, 12/01/18 ......................................... NR/NR* 395,419
420,000 6.00%, 12/01/19 ......................................... NR/NR* 420,445
295,000 6.00%, 12/01/13 ......................................... NR/NR* 295,313
Bountiful, Utah Special Improvement District
Special Assessment Revenue
203,000 5.00%, 06/01/14 ......................................... NR/NR* 203,445
213,000 5.15%, 06/01/15 ......................................... NR/NR* 214,012
224,000 5.30%, 06/01/16 ......................................... NR/NR* 224,367
236,000 5.50%, 06/01/17 ......................................... NR/NR* 238,525
249,000 5.65%, 06/01/18 ......................................... NR/NR* 252,969
Brian Head, Utah Special Service Improvement
District Revenue
410,000 5.35%, 11/01/12 ......................................... NR/NR* 430,258
Cache County, Utah Sales Tax Revenue
500,000 5.00%, 12/15/14 FGIC Insured ........................... Aaa/AAA 547,260
670,000 5.00%, 12/15/16 FGIC Insured ........................... Aaa/AAA 726,106
600,000 5.00%, 12/15/17 FGIC Insured ........................... Aaa/AAA 644,706
510,000 5.00%, 12/15/18 FGIC Insured ........................... Aaa/AAA 542,977
830,000 5.00%, 12/15/19 FGIC Insured ........................... Aaa/AAA 883,668
Clearfield, Utah Sales Tax Revenue
590,000 5.00%, 07/01/18 FGIC Insured ........................... Aaa/AAA 632,987
620,000 5.00%, 07/01/19 FGIC Insured ........................... Aaa/AAA 662,414
650,000 5.00%, 07/01/20 FGIC Insured ........................... Aaa/AAA 691,100
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ --------------------------------------------------------- --------- -------------
TAX REVENUE (CONTINUED)
Coral Canyon, Utah Special Service District
$ 110,000 5.00%, 07/15/13 ......................................... NR/NR* $ 114,411
250,000 5.50%, 07/15/18 ......................................... NR/NR* 258,413
Davis County, Utah Sales Tax Revenue
1,470,000 5.15%, 10/01/18 AMBAC Insured ........................... NR/AAA 1,589,967
Jordanelle, Utah Special Service District
186,000 5.00%, 11/15/14 ......................................... NR/NR* 188,792
196,000 5.10%, 11/15/15 ......................................... NR/NR* 198,934
206,000 5.20%, 11/15/16 ......................................... NR/NR* 208,499
216,000 5.30%, 11/15/17 ......................................... NR/NR* 218,614
228,000 5.40%, 11/15/18 ......................................... NR/NR* 230,752
240,000 5.50%, 11/15/19 ......................................... NR/NR* 242,890
253,000 5.60%, 11/15/20 ......................................... NR/NR* 255,864
268,000 5.70%, 11/15/21 ......................................... NR/NR* 271,028
283,000 5.80%, 11/15/22 ......................................... NR/NR* 286,189
299,000 6.00%, 11/15/23 ......................................... NR/NR* 302,355
Jordanelle, Utah Special Service Improvement District
360,000 8.00%, 10/01/11 ......................................... NR/NR* 381,938
Lehi, Utah Sales Tax
610,000 5.00%, 06/01/21 FSA Insured ............................. Aaa/AAA 650,504
790,000 5.00%, 06/01/24 FSA Insured ............................. Aaa/AAA 831,127
Mountain Regional Water District, Utah Special
Assessment Revenue
1,935,000 7.00%, 12/01/18 ......................................... NR/NR* 1,944,617
Mountain Regional Water, Utah Special
Service District
2,000,000 5.00%, 12/15/20 MBIA Insured ........................... Aaa/AAA 2,132,060
North Ogden, Utah Sales Tax Revenue
195,000 5.00%, 11/01/24 XLCA Insured ............................ NR/AAA 204,237
Orem, Utah Special Assessment Revenue
96,000 5.00%, 08/01/15 ......................................... NR/NR* 98,053
101,000 5.15%, 08/01/16 ......................................... NR/NR* 102,938
106,000 5.30%, 08/01/17 ......................................... NR/NR* 108,540
112,000 5.50%, 08/01/18 ......................................... NR/NR* 115,900
118,000 5.65%, 08/01/19 ......................................... NR/NR* 122,883
Pleasant Grove City, Utah Sales Tax Revenue
410,000 5.25%, 12/01/17 MBIA Insured ........................... Aaa/AAA 453,202
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ --------------------------------------------------------- --------- -------------
TAX REVENUE (CONTINUED)
Salt Lake City, Utah Sales Tax Revenue
$ 490,000 5.25%, 02/01/12 ......................................... NR/AAA $ 549,491
265,000 5.25%, 02/01/13 ......................................... NR/AAA 294,701
1,320,000 5.25%, 02/01/15 ......................................... NR/AAA 1,453,162
100,000 5.25%, 02/01/17 ......................................... NR/AAA 108,980
Salt Lake County, Utah Sales Tax Revenue
955,000 5.00%, 2/01/21 XLCA Insured ............................. NR/AAA 1,024,495
1,005,000 5.00%, 2/01/22 XLCA Insured ............................. NR/AAA 1,072,154
1,060,000 5.00%, 2/01/23 XLCA Insured ............................. NR/AAA 1,124,554
1,115,000 5.00%, 2/01/24 XLCA Insured ............................. NR/AAA 1,181,030
Sandy City, Utah Sales Tax Revenue
520,000 5.00%, 09/15/18 AMBAC Insured .......................... NR/AAA 553,056
605,000 5.00%, 09/15/20 AMBAC Insured .......................... NR/AAA 640,175
South Jordan, Utah Municipal Building
Authority Revenue
290,000 5.375%,10/01/20 AMBAC Insured ........................... NR/AAA 319,133
South Jordan, Utah Sales Tax
570,000 5.00%, 08/15/15 AMBAC Insured ........................... Aaa/AAA 613,428
South Jordan, Utah Special Assignment
1,000,000 6.875%, 11/01/17 ........................................ NR/NR* 1,027,020
South Weber City, Utah
525,000 5.00%, 01/15/24 MBIA Insured ............................ Aaa/AAA 550,247
Utah Water Finance Agency Revenue
775,000 5.10%, 07/01/18 AMBAC Insured ........................... Aaa/NR 827,630
510,000 5.00%, 07/01/18 AMBAC Insured ........................... Aaa/NR 545,267
260,000 5.00%, 06/01/19 MBIA Insured ............................ Aaa/AAA 269,953
685,000 5.00%, 07/01/19 AMBAC Insured ........................... Aaa/NR 731,861
Wasatch County, Utah Building Authority
130,000 5.00%, 10/01/15 ......................................... A3/NR 136,852
135,000 5.00%, 10/01/16 ......................................... A3/NR 142,217
Wasatch County, Utah Sales Tax Revenue
205,000 5.00%, 12/01/16 AMBAC Insured .......................... Aaa/AAA 222,093
210,000 5.00%, 12/01/17 AMBAC Insured .......................... Aaa/AAA 225,578
225,000 5.00%, 12/01/18 AMBAC Insured .......................... Aaa/AAA 239,643
Washington City, Utah Sales Tax Revenue
680,000 5.25%, 11/15/17 AMBAC Insured .......................... Aaa/AAA 750,870
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ --------------------------------------------------------- --------- -------------
TAX REVENUE (CONTINUED)
Weber County Utah Sales Tax Revenue
$ 385,000 5.00%, 07/01/23 AMBAC Insured ........................... Aaa/NR $ 406,237
West Valley City, Utah Sales Tax Revenue
800,000 5.50%, 07/15/17 MBIA Insured ........................... Aaa/AAA 888,696
250,000 5.00%, 07/15/20 AMBAC Insured ........................... Aaa/AAA 265,108
180,000 5.00%, 07/15/21 MBIA Insured ............................ Aaa/AAA 188,984
1,400,000 6.00%, 03/01/24 ......................................... NR/A- 1,478,386
Woodland Hills, Utah Special Assessment Revenue
93,000 5.50%, 08/01/09 ......................................... NR/NR* 95,564
221,000 5.50%, 08/01/10 ......................................... NR/NR* 228,368
233,000 5.50%, 08/01/11 ......................................... NR/NR* 242,092
246,000 5.50%, 08/01/12 ......................................... NR/NR* 255,550
261,000 5.50%, 08/01/13 ......................................... NR/NR* 271,289
-------------
Total Tax Revenue 42,037,947
-------------
TRANSPORTATION (0.9%)
Utah Transit Authority Sales Tax &
Transportation Revenue
1,000,000 5.40%, 12/15/16 FSA Insured ............................. NR/AAA 1,083,970
100,000 5.00%, 06/15/21 FSA Insured ............................. Aaa/AAA 105,908
100,000 5.00%, 6/15/25 FSA Insured .............................. Aaa/AAA 103,984
-------------
Total Transportation 1,293,862
-------------
UTILITY (10.6%)
Heber, Utah Electric Light & Power Co. Revenue
500,000 5.00%,12/15/22 FSA Insured ............................. Aaa/NR 527,460
Indianapolis, Indiana Gas Utility Revenue
140,000 5.00%, 8/15/24 AMBAC Insured ............................ Aaa/AAA 144,607
Intermountain Power Agency Utilities Light &
Power Service, Utah
450,000 5.00%, 07/01/12 MBIA Insured ETM ....................... Aaa/AAA 456,665
1,470,000 5.25%, 07/01/15 MBIA Insured ............................ Aaa/AAA 1,607,401
90,000 5.00%, 07/01/16 ......................................... A1/A+ 93,371
425,000 5.00%, 07/01/18 FSA Insured ............................. Aaa/AAA 454,389
1,380,000 5.00%, 07/01/19 MBIA Insured ............................ Aaa/AAA 1,448,089
2,415,000 5.00%, 07/01/21 ......................................... A1/A+ 2,480,229
445,000 5.00%, 07/01/23 FSA Insured ............................. Aaa/AAA 456,877
Manti City, Utah Electric System Revenue
603,000 5.75%, 02/01/17 ......................................... NR/NR* 626,222
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ --------------------------------------------------------- --------- -------------
UTILITY (CONTINUED)
Murray City, Utah Utility Electric Revenue
$ 400,000 5.625%, 06/01/18 AMBAC Insured .......................... Aaa/NR $ 441,144
1,340,000 5.00%, 6/01/25 AMBAC Insured ............................ Aaa/NR 1,406,598
Salem, Utah Electric Revenue
125,000 5.30%, 11/01/07 ......................................... NR/NR* 131,196
130,000 5.35%, 11/01/08 ......................................... NR/NR* 139,056
140,000 5.40%, 11/01/09 ......................................... NR/NR* 150,735
Southern Utah Valley Power System Revenue
210,000 5.25%, 09/15/13 MBIA Insured ............................ NR/AAA 235,043
225,000 5.25%, 09/15/14 MBIA Insured ............................ NR/AAA 251,831
235,000 5.25%, 09/15/15 MBIA Insured ............................ NR/AAA 261,513
185,000 5.125%, 09/15/21 MBIA Insured ........................... NR/AAA 197,519
Springville, Utah Electric Revenue
550,000 5.60%, 03/01/09 ......................................... Baa1/NR 594,281
Utah Assessed Municipal Power System Revenue
790,000 5.25%, 12/01/09 ......................................... NR/A- 862,964
1,000,000 5.00%, 04/01/21 FSA Insured ............................ Aaa/AAA 1,057,310
Washington, Utah Electric Revenue
985,000 5.00%, 9/01/21 XLCA Insured ............................. Aaa/NR 1,045,361
-------------
Total Utility 15,069,861
-------------
WATER AND SEWER (10.8%)
Ashley Valley, Utah
230,000 9.50%, 01/01/08 AMBAC Insured ........................... Aaa/AAA 249,111
Eagle Mountain, Utah Water and Sewer
750,000 5.80%, 11/15/16 ACA Insured ............................. NR/A 809,092
Granger and Hunter, Utah Improvement District
Water and Sewer
350,000 5.00%, 03/01/18 FSA Insured ............................. Aaa/NR 363,101
Murray City, Utah Sewer and Water Revenue
465,000 5.00%, 10/01/17 AMBAC Insured .......................... Aaa/NR 502,544
390,000 5.00%, 10/01/18 AMBAC Insured .......................... Aaa/NR 417,608
440,000 5.00%, 10/01/19 AMBAC Insured .......................... Aaa/NR 470,813
North Davis County, Utah Sewer District
1,330,000 5.375%, 03/01/18 AMBAC Insured (pre-refunded) .......... Aaa/NR 1,514,551
1,350,000 5.00%, 03/01/21 AMBAC Insured ........................... Aaa/NR 1,434,483
150,000 5.125%, 03/01/22 AMBAC Insured (pre-refunded) ......... Aaa/NR 168,432
Riverton, Utah Water Revenue
100,000 5.35%, 09/01/15 FGIC Insured (pre-refunded) ............ Aaa/NR 112,858
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ --------------------------------------------------------- --------- -------------
WATER AND SEWER (CONTINUED)
Salt Lake City, Utah Metropolitan Water Revenue
$ 1,200,000 5.375%, 07/01/24 AMBAC Insured (pre-refunded) ........... Aaa/AAA $ 1,341,300
125,000 5.375%, 07/01/29 AMBAC Insured (pre-refunded) ........... Aaa/AAA 139,719
Salt Lake City, Utah Water and Sewer Revenue
500,000 5.75%, 02/01/13 AMBAC Insured .......................... Aaa/AAA 501,305
675,000 5.00%, 02/01/19 FSA Insured ............................. Aaa/AAA 723,789
845,000 5.00%, 02/01/20 FSA Insured ............................. Aaa/AAA 901,446
Salt Lake & Sandy, Utah Water District
1,000,000 5.00%, 07/01/20 AMBAC Insured ........................... Aaa/NR 1,069,340
Spanish Fork City, Utah Water Revenue
195,000 5.50%, 06/01/17 FSA Insured ............................. Aaa/NR 217,548
55,000 5.50%, 06/01/17 FSA Insured (pre-refunded) .............. Aaa/NR 63,085
Utah Water Finance Agency Revenue
100,000 5.00%, 06/01/14 MBIA Insured ........................... Aaa/AAA 105,861
200,000 5.25%, 07/01/16 AMBAC Insured .......................... Aaa/NR 220,940
250,000 5.375%, 09/01/17 AMBAC Insured ......................... Aaa/NR 278,800
310,000 5.00%, 10/01/17 AMBAC Insured ........................... Aaa/NR 332,571
500,000 5.25%, 10/01/18 AMBAC Insured .......................... Aaa/NR 550,300
465,000 5.00%, 10/01/20 AMBAC Insured ........................... Aaa/NR 492,165
100,000 5.125%, 7/01/23 AMBAC Insured ........................... Aaa/NR 105,956
285,000 5.30%, 10/01/23 MBIA Insured ........................... Aaa/AAA 308,638
450,000 5.40%, 10/01/24 AMBAC Insured .......................... Aaa/AAA 479,322
250,000 5.50%, 10/01/29 AMBAC Insured .......................... Aaa/AAA 269,267
Weber-Box Elder, Utah Conservation District
Water Revenue
200,000 6.45%, 11/01/14 (pre-refunded) ......................... Baa3/NR 236,248
200,000 6.50%, 11/01/19 (pre-refunded) ......................... Baa3/NR 236,778
335,000 6.90%, 11/01/20 (pre-refunded) ......................... Baa3/NR 403,705
White City, Utah Water Improvement
300,000 5.90%, 02/01/22 AMBAC Insured ........................... Aaa/AAA 314,328
-------------
Total Water and Sewer 15,335,004
-------------
Total Revenue Bonds 114,393,592
-------------
Total Investments (cost $133,759,490**) 97.6% 139,012,320
Other assets less liabilities 2.4 3,392,899
----- -------------
Net Assets 100.0% $ 142,405,219
===== =============
Portfolio Distribution by Quality Rating (unaudited)
Highest rating(1) ....................................... 76.8%
Second highest rating(2) ................................ 3.9
Third highest rating(3) ................................. 4.6
Fourth highest rating(4) ................................ 2.3
Not rated* .............................................. 12.4
-----
100.0%
=====
(1) Aaa of Moody's or AAA of S&P.
(2) Aa of Moody's or AA of S&P.
(3) A of Moody's or S&P.
(4) Baa of Moody's or BBB of S&P.
* Any security not rated (NR) by either credit rating service
must be determined by the Investment Adviser to have
sufficient quality to be ranked in the top four ratings if a
credit rating were to be assigned by a rating service.
** See note 4.
PORTFOLIO ABBREVIATIONS:
-----------------------------------------------------------
ACA - American Capital Assurance Financial Guaranty Corp.
AMBAC - American Municipal Bond Assurance Corp.
AMT - Alternative Minimum Tax
ETM - Escrowed to Maturity
FGIC - Financial Guaranty Insurance Co.
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
LOC - Letter of Credit
MBIA - Municipal Bond Investors Assurance
NR - Not Rated
XLCA - XL Capital Assurance
See accompanying notes to financial statements.
TAX-FREE FUND FOR UTAH
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2004
(UNAUDITED)
ASSETS
Investments at value (cost $133,759,490) .............................................. $ 139,012,320
Cash .................................................................................. 189,146
Interest receivable ................................................................... 1,940,377
Receivable for Fund shares sold ....................................................... 1,531,087
Receivable for investment securities sold ............................................. 520,000
Other assets .......................................................................... 3,555
-------------
Total assets .......................................................................... 143,196,485
-------------
LIABILITIES
Payable for Fund shares redeemed ........................................................ 481,893
Dividends payable ....................................................................... 110,286
Payable for investment securities purchased ............................................. 103,011
Distribution and service fees payable ................................................... 74,918
Management fees payable ................................................................. 7,125
Accrued expenses ........................................................................ 14,033
-------------
Total liabilities ....................................................................... 791,266
-------------
NET ASSETS ................................................................................. $ 142,405,219
-------------
Net Assets consist of:
Capital Stock - Authorized an unlimited number of shares, par value $.01 per share ...... $ 139,728
Additional paid-in capital .............................................................. 140,355,219
Net unrealized appreciation on investments (note 4) ..................................... 5,252,830
Accumulated net realized loss on investments ............................................ (3,048,040)
Distributions in excess of net investment income ........................................ (294,518)
-------------
$ 142,405,219
=============
CLASS A
Net Assets .............................................................................. $ 109,238,327
=============
Capital shares outstanding .............................................................. 10,719,927
=============
Net asset value and redemption price per share .......................................... $ 10.19
=============
Offering price per share (100/96 of $10.19 adjusted to nearest cent) .................... $ 10.61
=============
CLASS C
Net Assets .............................................................................. $ 23,853,111
=============
Capital shares outstanding .............................................................. 2,341,720
=============
Net asset value and offering price per share ............................................ $ 10.19
=============
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) ........................................... $ 10.19*
=============
CLASS Y
Net Assets .............................................................................. $ 9,313,781
=============
Capital shares outstanding .............................................................. 911,197
=============
Net asset value, offering and redemption price per share ................................ $ 10.22
=============
See accompanying notes to financial statements.
TAX-FREE FUND FOR UTAH
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2004 (UNAUDITED)
INVESTMENT INCOME:
Interest income ............................................ $ 3,053,925
Expenses:
Management fee (note 3) .................................... $ 334,039
Distribution and service fees (note 3) ..................... 217,399
Transfer and shareholder servicing agent fees .............. 34,744
Fund accounting fees ....................................... 32,960
Trustees' fees and expenses (note 8) ....................... 24,738
Legal fees ................................................. 23,042
Shareholders' reports and proxy statements ................. 21,700
Custodian fees ............................................. 18,091
Auditing and tax fees ...................................... 12,477
Insurance .................................................. 4,285
Registration fees and dues ................................. 3,637
Chief compliance officer (note 3) .......................... 1,136
Miscellaneous .............................................. 12,458
-----------
Total expenses ............................................. 740,706
Management fee waived (note 3) ............................. (297,329)
Expenses paid indirectly (note 6) .......................... (18,154)
-----------
Net expenses ............................................... 425,223
-----------
Net investment income ...................................... 2,628,702
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from securities transactions ...... 32,208
Change in unrealized appreciation on investments ........... 3,652,653
-----------
Net realized and unrealized gain (loss) on investments ..... 3,684,861
-----------
Net increase in net assets resulting from operations ............ $ 6,313,563
===========
See accompanying notes to financial statements.
TAX-FREE FUND FOR UTAH
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED
DECEMBER 31, 2004 YEAR ENDED
(UNAUDITED) JUNE 30, 2004
----------------- -----------------
OPERATIONS:
Net investment income ............................................... $ 2,628,702 $ 4,722,829
Net realized gain (loss) from securities transactions ............... 32,208 (365,387)
Change in unrealized appreciation on investments .................... 3,652,653 (3,968,215)
------------- -------------
Change in net assets from operations ............................ 6,313,563 389,227
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 10):
Class A Shares:
Net investment income ............................................... (2,199,402) (4,242,881)
Class C Shares:
Net investment income ............................................... (411,288) (733,873)
Class Y Shares:
Net investment income ............................................... (204,338) (83,837)
------------- -------------
Change in net assets from distributions ......................... (2,815,028) (5,060,591)
------------- -------------
CAPITAL SHARE TRANSACTIONS (note 7):
Proceeds from shares sold ........................................... 22,508,996 57,964,198
Reinvested dividends and distributions .............................. 1,627,787 2,768,847
Cost of shares redeemed ............................................. (9,526,769) (34,397,531)
------------- -------------
Change in net assets from capital share transactions ............ 14,610,014 26,335,514
------------- -------------
Change in net assets ............................................ 18,108,549 21,664,150
NET ASSETS:
Beginning of period ................................................. 124,296,670 102,632,520
------------- -------------
End of period* ...................................................... $ 142,405,219 $ 124,296,670
============= =============
* Includes distributions in excess of net investment income of: ..... $ (294,518) $ (108,192)
============= =============
See accompanying notes to financial statements.
TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS
(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 with a
front-payment sales charge and bear an annual distribution fee. Class C shares
are sold with a level-payment sales charge with no payment at time of purchase
but level service and distribution fees from date of purchase through a period
of six years thereafter. A contingent deferred sales charge of 1% is assessed to
any Class C shareholder who redeems shares of this Class within one year from
the date of purchase. Class C Shares, together with a pro-rata portion of all
Class C Shares acquired through reinvestment of dividends and other
distributions paid in additional Class C Shares, automatically convert to Class
A Shares after 6 years. The Class Y shares are only offered to institutions
acting for an investor in a fiduciary, advisory, agency, custodian or similar
capacity and are not offered directly to retail investors. Class Y shares are
sold at net asset value without any sales charge, redemption fees, contingent
deferred sales charge or distribution or service fees. 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 investors. 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.
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 market quotations or a valuation from the pricing service is not
readily available, the security is valued at fair value determined under
procedures established by and under the general supervision of the Board
of Trustees. Securities which mature in 60 days or less are 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.
b) 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.
c) FEDERAL INCOME TAXES: It is the policy of the Fund 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.
d) 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 charged directly to such class.
e) 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.
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 Investment Adviser for the Fund under an Advisory and
Administration Agreement with the Fund. 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 average net
assets.
For the six months ended December 31, 2004, the Fund incurred management
fees of $334,039 of which $297,329 was voluntarily waived. Such waivers are
voluntary and can be terminated in
the future at the Manager's discretion. However, the Manager has indicated that
it intends to continue waiving fees as necessary in order that the Fund will
remain competitive.
Under the October 1, 2004, Compliance Agreement with the Manager, the
Manager is compensated 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 service 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, 2004, distribution fees on Class A
Shares amounted to $101,426, of which the Distributor retained $1,931.
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, 2004, amounted to $86,980. 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, 2004 amounted to $28,993. The
total of these payments with respect to Class C Shares amounted to $115,973, of
which the Distributor retained $19,052.
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 broker-dealer firms ("dealers"), the Fund's shares are sold primarily
through the facilities of these dealers having
offices within Utah, with the bulk of sales commissions inuring to such dealers.
For the six months ended December 31, 2004, total commissions on sales of Class
AShares amounted to $374,081, of which the Distributor received $36,341.
c) OTHER RELATED PARTY TRANSACTIONS:
For the six months ended December 31, 2004, the Fund incurred $22,727 of
legal fees allocable to Hollyer Brady Barrett & Hines LLP, counsel to the Fund,
for legal services in conjunction with the Fund's ongoing operations. The
Secretary of the Fund is a Partner of Hollyer Brady Barrett & Hines LLP.
4. PURCHASES AND SALES OF SECURITIES
During the six months ended December 31, 2004, purchases of securities and
proceeds from the sales of securities aggregated $20,767,479 and $3,992,310,
respectively.
At December 31, 2004, the aggregate tax cost for all securities was
$133,724,332. At December 31, 2004, the aggregate gross unrealized appreciation
for all securities in which there is an excess of market value over tax cost
amounted to $5,336,248 and aggregate gross unrealized depreciation for all
securities in which there is an excess of tax cost over market value amounted to
$48,260, for a net unrealized appreciation of $5,287,988.
5. PORTFOLIO ORIENTATION
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.
The Fund is also permitted to invest in tax-free municipal obligations of
issuers in other states and U.S. territories meeting comparable quality
standards and providing income which is exempt from both regular Federal and
Utah income taxes. The general policy of the Fund is to invest in such
securities only when comparable securities of Utah issuers are not available in
the market. At December 31, 2004, the Fund had 98% of its net assets invested in
State of Utah municipal issues.
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. It is the general intention of the Fund to invest, to the
extent practicable, some or all of cash balances in income-producing assets
rather than leave cash on deposit.
7. CAPITAL SHARE TRANSACTIONS
Transactions in Capital Shares of the Fund were as follows:
SIX MONTHS ENDED
DECEMBER 31, 2004 YEAR ENDED
(UNAUDITED) JUNE 30, 2004
----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
CLASS A SHARES:
Proceeds from shares sold ..... 1,753,327 $ 17,811,092 3,786,483 $ 38,300,080
Reinvested distributions ...... 131,218 1,333,229 227,183 2,293,880
Cost of shares redeemed ....... (656,661) (6,659,007) (2,800,659) (28,028,537)
------------ ------------ ------------ ------------
Net change ................. 1,227,884 12,485,314 1,213,007 12,565,423
------------ ------------ ------------ ------------
CLASS C SHARES:
Proceeds from shares sold ..... 331,187 3,360,114 1,087,383 11,056,567
Reinvested distributions ...... 24,193 245,776 42,247 426,325
Cost of shares redeemed ....... (229,690) (2,326,752) (507,597) (5,107,857)
------------ ------------ ------------ ------------
Net change ................. 125,690 1,279,138 622,033 6,375,035
------------ ------------ ------------ ------------
CLASS Y SHARES:
Proceeds from shares sold ..... 131,618 1,337,790 864,901 8,607,551
Reinvested distributions ...... 4,797 48,782 4,819 48,642
Cost of shares redeemed ....... (53,113) (541,010) (127,200) (1,261,137)
------------ ------------ ------------ ------------
Net change ................. 83,302 845,562 742,520 7,395,056
------------ ------------ ------------ ------------
Total transactions in Fund
shares ........................ 1,436,876 $ 14,610,014 2,577,560 $ 26,335,514
============ ============ ============ ============
8. TRUSTEES' FEES AND EXPENSES
During the previous fiscal year ended June 30, 2004 there were seven
trustees, two of whom were affiliated with the Manager and are not paid any
trustee fees. Each Trustee's fee paid during the year was at the annual rate of
$4,950 for carrying out their responsibilities and attendance at regularly
scheduled Board Meetings. If additional or special meetings are scheduled for
the Fund, separate meeting fees are paid for each such meeting to those Trustees
in attendance. The Fund also reimburses Trustees for expenses such as travel,
accommodations, and meals incurred in connection with attendance at regularly
scheduled or special Board Meetings and at the Annual Meeting of Shareholders.
For the previous fiscal year ended June 30, 2004 such reimbursements averaged
approximately $3,613 per Trustee.
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 amount 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 in additional shares at the net asset value per share, in cash,
or in a combination of both, at the shareholder's option. Net realized capital
gains, if any, are distributed annually and are taxable.
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.
However, 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 credited distributions in excess of net investment
income in the amount of $300,394 and debited additional paid-in capital in the
amount of $300,394 at June 30, 2004. This adjustment had no impact on the Fund's
aggregate net assets at June 30, 2004. Further, a small portion of the dividends
may, under some circumstances, be subject to taxes at ordinary income rates.
At June 30, 2004, the Fund had a capital loss carryover of $2,939,997 of
which $211,315 expires on June 30, 2008, $2,459,398 expires on June 30, 2009,
$15,469 expires on June 30, 2011, and $253,815 expires on June 30, 2012. This
carryover is available to offset future net realized gains on securities
transactions to the extent provided for in the Internal Revenue Code. To the
extent that this loss is used to offset future realized capital gains, it is
probable that the gains so offset will not be distributed. In addition, the Fund
had $140,250 of capital losses realized after October 31, 2003 which were
deferred for tax purposes to the first day of the following fiscal year.
The tax character of distributions:
YEAR ENDED JUNE 30,
2004 2003
----------- -----------
Net tax-exempt income $ 4,758,187 $ 3,419,849
Ordinary income 302,404 138,898
----------- -----------
$ 5,060,591 $ 3,558,747
=========== ===========
As of June 30, 2004, the components of distributable earnings on a tax
basis were as follows:
Accumulated net realized loss $(3,080,248)
Unrealized appreciation 1,625,226
-----------
$(1,455,022)
===========
At June 30, 2004, the difference between book basis and tax basis
unrealized appreciation was attributable primarily to the treatment of accretion
of discounts and amortization of premiums.
TAX-FREE FUND FOR UTAH
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
SIX MONTHS CLASS A
ENDED YEAR ENDED JUNE 30,
12/31/04 -------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
----------- -------- -------- -------- -------- --------
Net asset value, beginning of period .............. $ 9.91 $ 10.31 $ 9.85 $ 9.65 $ 9.35 $ 9.88
Income (loss) from investment operations:
Net investment income .......................... 0.21+ 0.43++ 0.44+ 0.46+ 0.48+ 0.48+
Net gain (loss) on securities (both realized
and unrealized) ............................. 0.29 (0.37) 0.48 0.22 0.32 (0.44)
-------- -------- -------- -------- -------- --------
Total from investment operations ............... 0.50 0.06 0.92 0.68 0.80 0.04
-------- -------- -------- -------- -------- --------
Less distributions (note 10):
Dividends from net investment income ........... (0.22) (0.46) (0.46) (0.48) (0.50) (0.51)
Distributions from capital gains ............... -- -- -- -- -- (0.06)
-------- -------- -------- -------- -------- --------
Total distributions ............................ (0.22) (0.46) (0.46) (0.48) (0.50) (0.57)
-------- -------- -------- -------- -------- --------
Net asset value, end of period .................... $ 10.19 $ 9.91 $ 10.31 $ 9.85 $ 9.65 $ 9.35
======== ======== ======== ======== ======== ========
Total return (not reflecting sales charge) ........ 5.09%* 0.54% 9.55% 7.22% 8.72% 0.57%
Ratios/supplemental data
Net assets, end of period (in thousands) ....... $109,238 $ 94,103 $ 85,329 $ 55,957 $ 34,321 $ 34,171
Ratio of expenses to average net assets ........ 0.54%** 0.48% 0.43% 0.46% 0.48% 0.42%
Ratio of net investment income to average
net assets .................................. 4.03%** 4.19% 4.31% 4.65% 4.95% 5.06%
Portfolio turnover rate ........................ 3.08%* 15.98% 6.43% 27.42% 44.17% 48.99%
The expense and net investment income ratios without the effect of the voluntary waiver of a portion of the management fee and the
voluntary expense reimbursement were:
Ratio of expenses to average net assets ........ 0.96%** 0.94% 1.02% 1.00% 1.11% 1.11%
Ratio of net investment income to average
net assets .................................. 3.59%** 3.73% 3.72% 4.11% 4.32% 4.37%
The expense ratios after giving effect to the waiver, reimbursement and expense offset for uninvested cash balances were:
Ratio of expenses to average net assets ........ 0.51%** 0.47% 0.42% 0.40% 0.39% 0.39%
- ----------
Note: Effective August 1, 2001, Aquila Management Corporation became the Fund's
Investment Adviser replacing Zions First National Bank which was the
sub-adviser. Effective January 1, 2004, Aquila Management Corporation,
founder of the Fund, assigned its Advisory and Administration Agreement to
its wholly-owned subsidiary, Aquila Investment Management LLC.
+ Per share amounts have been calculated using the monthly average shares
method.
++ Per share amount calculated using the daily average shares method.
* Not annualized
** Annualized
See accompanying notes to financial statements.
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
CLASS C
------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
12/31/04 --------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
----------- ------- ------- ------- ------- -------
Net asset value, beginning of period ............. $ 9.91 $ 10.30 $ 9.85 $ 9.64 $ 9.35 $ 9.87
Income (loss) from investment operations:
Net investment income ......................... 0.17+ 0.34++ 0.34+ 0.37+ 0.38+ 0.38+
Net gain (loss) on securities (both
realized and unrealized) .................. 0.29 (0.36) 0.48 0.23 (0.31) (0.42)
------- ------- ------- ------- ------- -------
Total from investment operations ................. 0.46 (0.02) 0.82 0.60 0.69 (0.04)
------- ------- ------- ------- ------- -------
Less distributions (note 10):
Dividends from net investment income .......... (0.18) (0.37) (0.37) (0.39) (0.40) (0.42)
Distributions from capital gains .............. -- -- -- -- -- (0.06)
------- ------- ------- ------- ------- -------
Total distributions ........................... (0.18) (0.37) (0.37) (0.39) (0.40) (0.48)
------- ------- ------- ------- ------- -------
Net asset value, end of period ................... $ 10.19 $ 9.91 $ 10.30 $ 9.85 $ 9.64 $ 9.35
======= ======= ======= ======= ======= =======
Total return (not reflecting sales charge) ....... 4.67%* (0.16)% 8.48% 7.86% 7.52% (0.33)%
Ratios/supplemental data
Net assets, end of period (in thousands) ...... $23,853 $21,961 $16,420 $ 6,694 $ 1,874 $ 1,036
Ratio of expenses to average net assets ....... 1.34%** 1.27% 1.31% 1.84% 1.47% 1.43%
Ratio of net investment income to
average net assets ......................... 3.24%** 3.38% 3.39% 3.72% 3.93% 4.07%
Portfolio turnover rate ....................... 3.08%* 15.98% 6.43% 27.42% 44.17% 48.99%
The expense and net investment income ratios without the effect of the voluntary waiver of a portion of the management fee
and the voluntary expense reimbursement were:
Ratio of expenses to average net assets ....... 1.76%** 1.74% 1.81% 1.78% 1.89% 1.91%
Ratio of net investment income to
average net assets ......................... 2.79%** 2.93% 2.89% 3.28% 3.51% 3.58%
The expense ratios after giving effect to the waiver, reimbursement and expense offset for uninvested cash balances were:
Ratio of expenses to average net assets ....... 1.31%** 1.27% 1.30% 1.28% 1.39% 1.39%
CLASS Y
------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
12/31/04 --------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
------- ------- ------- ------- ------- -------
Net asset value, beginning of period ............. $ 9.94 $ 10.34 $ 9.89 $ 9.68 $ 9.36 $ 9.88
Income (loss) from investment operations:
Net investment income ......................... 0.22+ 0.44++ 0.42+ 0.50+ 0.49+ 0.45+
Net gain (loss) on securities (both
realized and unrealized) .................. 0.29 (0.36) 0.50 0.20 0.34 (0.38)
------- ------- ------- ------- ------- -------
Total from investment operations ................. 0.51 0.08 0.92 0.70 0.83 0.07
------- ------- ------- ------- ------- -------
Less distributions (note 10):
Dividends from net investment income .......... (0.23) (0.48) (0.47) (0.49) (0.51) (0.53)
Distributions from capital gains .............. -- -- -- -- -- (0.06)
------- ------- ------- ------- ------- -------
Total distributions ........................... (0.23) (0.48) (0.47) (0.49) (0.51) (0.59)
------- ------- ------- ------- ------- -------
Net asset value, end of period ................... $ 10.22 $ 9.94 $ 10.34 $ 9.89 $ 9.68 $ 9.36
======= ======= ======= ======= ======= =======
Total return (not reflecting sales charge) ....... 5.20%* 0.76% 9.55% 7.41% 9.05% 0.86%
Ratios/supplemental data
Net assets, end of period (in thousands) ...... $ 9.314 $ 8.233 $ 883 $ 30 $ 5 $ 0.1
Ratio of expenses to average net assets ....... 0.34%** 0.28% 0.30% 0.36% 0.42% 0.42%
Ratio of net investment income to
average net assets ......................... 4.24%** 4.41% 4.17% 4.75% 4.83% 4.88%
Portfolio turnover rate ....................... 3.08%* 15.98% 6.43% 27.42% 44.17% 48.99%
The expense and net investment income ratios without the effect of the voluntary waiver of a portion of the management fee
and the voluntary expense reimbursement were:
Ratio of expenses to average net assets ....... 0.76%** 0.74% 0.78% 0.80% 0.64% 0.86%
Ratio of net investment income to
average net assets ......................... 3.79%** 3.95% 3.70% 4.31% 4.62% 4.43%
The expense ratios after giving effect to the waiver, reimbursement and expense offset for uninvested cash balances were:
Ratio of expenses to average net assets ....... 0.31%** 0.27% 0.29% 0.30% 0.36% 0.39%
Note: Effective August 1, 2001, Aquila Management Corporation became the Fund's
Investment Adviser replacing Zions First National Bank which was the
sub-adviser. Effective January 1, 2004, Aquila Management Corporation,
founder of the Fund, assigned its Advisory and Administration Agreement to
its wholly-owned subsidiary, Aquila Investment Management LLC.
+ Per share amounts have been calculated using the monthly average shares
method.
++ Per share amount calculated using the daily average shares method.
* Not annualized
** Annualized
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
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 tables below are 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 tables below are based on an investment of $1,000 invested on July 1,
2004 and held for the six months ended December 31, 2004.
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 entitled "Expenses Paid
During the Period".
FOR THE SIX MONTHS ENDED DECEMBER 31, 2004
ACTUAL
TOTAL RETURN BEGINNING ENDING EXPENSES
WITHOUT ACCOUNT ACCOUNT PAID DURING
SALES CHARGES(1) VALUE VALUE THE PERIOD(2)
- --------------------------------------------------------------------------------
Class A 5.09% $1,000.00 $1,050.90 $2.64
- --------------------------------------------------------------------------------
Class C 4.67% $1,000.00 $1,046.70 $6.76
- --------------------------------------------------------------------------------
Class Y 5.20% $1,000.00 $1,052.00 $1.60
- --------------------------------------------------------------------------------
(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
CONTINGENT DEFERRED SALES CHARGES ("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 0.51%, 1.31% AND
0.31% 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).
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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
contingent deferred sales charges ("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.
FOR THE SIX MONTHS ENDED DECEMBER 31, 2004
HYPOTHETICAL
ANNUALIZED BEGINNING ENDING EXPENSES
TOTAL ACCOUNT ACCOUNT PAID DURING
RETURN VALUE VALUE THE PERIOD(1)
- --------------------------------------------------------------------------------
Class A 5.00% $1,000.00 $1,022.63 $2.60
- --------------------------------------------------------------------------------
Class C 5.00% $1,000.00 $1,018.60 $6.67
- --------------------------------------------------------------------------------
Class Y 5.00% $1,000.00 $1,023.64 $1.58
- --------------------------------------------------------------------------------
(1) EXPENSES ARE EQUAL TO THE ANNUALIZED EXPENSE RATIO OF 0.51%, 1.31% AND
0.31% 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).
- --------------------------------------------------------------------------------
SHAREHOLDER MEETING RESULTS (UNAUDITED)
The Annual Meeting of Shareholders of Tax-Free Fund For Utah (the "Fund") was
held on September 23, 2004. The holders of shares representing 85% 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 are presented below).
1. To elect Trustees.
NUMBER OF VOTES
---------------------------------
TRUSTEE FOR WITHHELD
------- --- --------
Lacy B. Herrmann 9,907,325 569,293
Gary C. Cornia 10,381,837 94,781
William L. Ensign 10,434,683 41,935
Diana P. Herrmann 9,908,039 568,579
Lyle W. Hillyard 10,377,640 98,978
John C. Lucking 10,434,477 42,141
Anne J. Mills 10,392,259 84,359
2. To ratify the selection of KPMG LLP as the Fund's independent registered
public accounting firm.
Number of Votes:
FOR AGAINST ABSTAIN
--- ------- -------
10,345,642 55,931 75,045
- --------------------------------------------------------------------------------
INFORMATION AVAILABLE (UNAUDITED)
Much of the information that the funds in the Aquila(sm) Group of Funds
produce is automatically sent to you and all other shareholders. Specifically,
you are routinely sent the entire list of portfolio securities of your Fund
twice a year in the semi-annual and annual reports you receive. Additionally, we
prepare, and have available, portfolio listings at the end of each quarter.
Whenever you may be interested in seeing a listing of your Fund's portfolio
other than in your shareholder reports, please check our website
(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, DC or by calling 800-SEC-0330.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PROXY VOTING RECORD. 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, 2004 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 http://www.sec.gov.
- --------------------------------------------------------------------------------
FOUNDER
AQUILA MANAGEMENT CORPORATION
MANAGER
AQUILA INVESTMENT MANAGEMENT LLC
380 Madison Avenue, Suite 2300
New York, New York 10017
BOARD OF TRUSTEES
Lacy B. Herrmann, Chairman
Gary C. Cornia
William L. Ensign
Diana P. Herrmann
Lyle W. Hillyard
John C. Lucking
Anne J. Mills
OFFICERS
Diana P. Herrmann, Vice Chair and President
Jerry G. McGrew, Senior Vice President
Kimball L. Young, Senior Vice President
and Co-Portfolio Manager
Thomas S. Albright, Senior Vice President
and Co-Portfolio Manager
M. Kayleen Willis, Vice President
Joseph P. DiMaggio, Chief Financial Officer
and Treasurer
Edward M.W. Hines, Secretary
DISTRIBUTOR
AQUILA DISTRIBUTORS, INC.
380 Madison Avenue, Suite 2300
New York, New York 10017
CUSTODIAN
BANK ONE TRUST COMPANY, N.A.
1111 Polaris Parkway
Columbus, Ohio 43240
TRANSFER AND SHAREHOLDER SERVICING AGENT
PFPC INC.
760 Moore Road
King of Prussia, Pennsylvania 19406
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
757 Third Avenue
New York, New York 10017
Further information is contained in the Prospectus, which must precede or
accompany this report.
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
905: Not applicable.
ITEM 8. [RESERVED]
ITEM 9. 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 fling 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 10. EXHIBITS.
(a)(1) Not applicable.
(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/ Lacy B. Herrmann
- ---------------------------------
Chair of the Board
February 28, 2005
By: /s/ Diana P. Herrmann
- ---------------------------------
Vice Chair, President and Trustee
February 28, 2005
By: /s/ Joseph P. DiMaggio
- -----------------------------------
Chief Financial Officer and Treasurer
February 28, 2005
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/ Lacy B. Herrmann
- ---------------------------------
Lacy B. Herrmann
Chair of the Board
February 28, 2005
By: /s/ Diana P. Herrmann
- ---------------------------------
Diana P. Herrmann
Vice Chair, President and Trustee
February 28, 2005
By: /s/ Joseph P. DiMaggio
- -----------------------------------
Joseph P. DiMaggio
Chief Financial Officer and Treasurer
February 28, 2005