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: 12/31/06
FORM N-CSR
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMI-ANNUAL
REPORT
December 31, 2006
[LOGO OF TAX-FREE FUND FOR UTAH:
A RECTANGLE CONTAINING DESERT BOULDERS WITH THE SUN RISING BEHIND THEM](SM)
TAX-FREE FUND FOR
UTAH
A TAX-FREE INCOME INVESTMENT
[LOGO OF THE AQUILA
GROUP OF FUNDS: ONE OF THE
AN EAGLE'S HEAD] AQUILA GROUP OF FUNDS(SM)
[LOGO OF TAX-FREE FUND FOR UTAH:
A RECTANGLE CONTAINING DESERT BOULDERS
WITH THE SUN RISING BEHIND THEM](SM)
SERVING UTAH INVESTORS FOR MORE THAN A DECADE
TAX-FREE FUND FOR UTAH
"TAX-FREE IN BLACK AND WHITE"
February, 2007
Dear Fellow Shareholder:
We have all seen and heard the words "tax-free" over and over in various
contexts. In fact, the name of the Fund contains the words "tax-free." But, what
does that really mean to you in black and white?
As you know, you have to pay federal, state, and/or local taxes on the
dividends distributed to you by a taxable mutual fund. Thus, a bond fund which
invests in tax-free municipal bonds, such as Tax-Free Fund For Utah, may
actually generate more net dividend income than a taxable bond fund with a
higher stated yield.
How is this possible? Let's use a simple example.
Suppose you invest $10,000 in a hypothetical TAX-FREE municipal bond fund
with a yield of 4%, paying dividends that are EXEMPT FROM FEDERAL INCOME TAXES,
and you also invest $10,000 in a hypothetical TAXABLE bond fund with a yield of
5.5%, paying dividends that are TAXABLE AT THE FEDERAL LEVEL. The example below
shows the outcome for an investor in the 33% federal income tax bracket. As you
can see, your investment in the tax-free municipal bond fund would have ended up
with more after-tax income even though the fund's yield was lower.
[BAR CHART]
Federal Income Interest Income
Taxes After Taxes
Tax-Free Municipal Bond $400
Fund Yielding 4% (Assumes no taxes)
Taxable Bond Fund Yielding 5.5% $181.50 $368.50
Tax Rate 33%
To help you compare taxable bond funds versus tax-free municipal bond
funds, a taxable-equivalent yield is often used. The taxable-equivalent yield
provides you with the rate that a taxable bond fund would have to yield to give
you the same after-tax yield as a tax-free municipal bond fund. (You should be
aware that the calculation does not take into account the impact of state income
taxes, or any alternative minimum taxes, to which some investors may be
subject.)
NOT A PART OF THE SEMI-ANNUAL REPORT
In its simplest terms,
- --------------------------------------------------------------------------------
Yield of tax-free municipal bond fund
- ------------------------------------- = Your taxable-equivalent yield
1.00 - your federal income tax rate
- --------------------------------------------------------------------------------
Using the above tax-free example of a 4% yield and a federal tax bracket
of 33%, the calculation would be as follows:
- --------------------------------------------------------------------------------
4
- ----------- = 5.97%
1.00 - 0.33
- --------------------------------------------------------------------------------
In other words, a tax-free investment of 4.00% and a taxable investment of
5.97% would provide the same yield after taxes.
EFFECT OF FEDERAL INCOME TAXES ON YIELDS OF TAX-EXEMPT AND TAXABLE
INSTRUMENTS
4.00% 5.97%
TAX-FREE BOND TAXABLE BOND
Cash investment $ 10,000 $ 10,000
Interest $ 400 $ 597
33% Federal income tax $ 0 $ 197.01
Net return $ 400 $ 399.99
Yield on investment after federal taxes 4.0% 4.0%
You should be aware that dividends paid by tax-free municipal bond funds,
such as Tax-Free Fund For Utah, are often also exempt from state and/or local
taxes. FACTORING IN THE EXEMPTION AT THE STATE AND/OR LOCAL LEVEL WOULD HAVE THE
EFFECT OF INCREASING THE TAXABLE EQUIVALENT YIELD EVEN FURTHER.
So, the next time that you see the phrase "tax-free," remember that in
black and white, it oftentimes means more money into your pocket.
Sincerely,
/s/ Diana P. Herrmann /s/ Lacy B. Herrmann
Diana P. Herrmann Lacy B. Herrmann
President Founder and Chairman Emeritus
For certain investors, some dividends of your Fund may be subject to Federal and
State taxes, including the Alternative Minimum Tax. These hypothetical examples
are not intended to predict or project investment performance. Your own results
will vary. State and local taxes, fees and expenses, if any, are not taken into
account.
NOT A PART OF THE SEMI-ANNUAL REPORT
TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS
DECEMBER 31, 2006 (UNAUDITED)
RATING
FACE MOODY'S/
AMOUNT GENERAL OBLIGATION BONDS (23.4%) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
CITY, COUNTY AND STATE (10.0%)
Anderson, Indiana San District
$ 505,000 4.600%, 07/15/23 AMBAC Insured ............................... Aaa/AAA $ 521,210
Brian Head, Utah
405,000 6.500%, 03/15/24 ............................................. NR/NR* 438,615
Cedar City, Utah Special Improvement
District Assessment
235,000 5.050%, 09/01/10 ............................................. NR/NR* 239,221
215,000 5.200%, 09/01/11 ............................................. NR/NR* 222,069
Cedar Park, Texas
835,000 4.500%, 02/15/22 MBIA Insured ................................ Aaa/AAA 849,721
Clearfield City, Utah
2,095,000 5.125%, 02/01/18 MBIA Insured (pre-refunded) ................. Aaa/AAA 2,157,850
Coral Canyon, Utah Special Service District
140,000 4.850%, 07/15/17 ............................................. NR/NR* 144,418
580,000 5.700%, 07/15/18 ............................................. NR/NR* 599,111
Dawson County, Texas Hospital District
555,000 4.375%, 02/15/24 AMBAC Insured ............................... NR/AAA 557,425
Denton County, Texas
700,000 4.500%, 07/15/24 MBIA Insured ................................ Aaa/AAA 709,401
Draper, Utah
370,000 4.500%, 02/01/18 AMBAC Insured ............................... Aaa/NR 382,491
Hurricane, Utah
185,000 5.400%, 11/01/09 Radian Insured .............................. NR/AA 191,943
Laredo, Texas
300,000 4.250%, 08/15/21 AMBAC Insured ............................... Aaa/AAA 301,278
500,000 4.500%, 02/15/24 AMBAC Insured ............................... Aaa/AAA 506,425
Mckinney, Texas
1,700,000 4.500%, 08/15/23 XLCA Insured ................................ Aaa/AAA 1,725,415
1,375,000 5.000%, 08/15/24 XLCA Insured ................................ Aaa/AAA 1,467,180
Mesquite, Texas
510,000 4.625%, 02/15/22 FSA Insured ................................. Aaa/AAA 526,167
Nevada State
965,000 4.500%, 08/01/21 FSA Insured ................................. Aaa/AAA 984,792
San Antonio, Texas
125,000 4.750%, 02/01/24 FSA Insured ................................. Aaa/AAA 129,259
RATING
FACE MOODY'S/
AMOUNT GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
CITY, COUNTY AND STATE (CONTINUED)
San Patricio County Texas
$ 450,000 4.600%, 04/01/25 AMBAC Insured ............................... Aaa/NR $ 460,867
Spokane County, Washington
420,000 4.500%, 12/01/23 MBIA Insured ............................... Aaa/AAA 427,946
Waco, Texas
2,560,000 4.500%, 02/01/24 MBIA Insured ................................ Aaa/AAA 2,585,677
Washington County, Utah
1,250,000 5.000%, 10/01/22 MBIA Insured ................................ Aaa/NR 1,318,075
Washington State
3,315,000 4.500%, 01/01/22 MBIA Insured ................................ Aaa/AAA 3,378,714
705,000 4.500%, 07/01/23 FSA Insured ................................. Aaa/AAA 707,926
Williamson County, Texas
460,000 4.500%, 02/15/26 FSA Insured ................................. Aaa/AAA 463,404
-------------
Total City, County and State ................................. 21,996,600
-------------
SCHOOL DISTRICT (13.4%)
Borger, Texas Independent School District
400,000 4.500%, 02/15/24 ............................................. NR/AAA 405,660
500,000 4.500%, 02/15/25 ............................................. NR/AAA 504,450
Canutillo, Texas Independent School District
500,000 4.500%, 08/15/25 ............................................. NR/AAA 504,645
Carbon County, Utah School District
800,000 5.000%, 06/15/21 ............................................. Aaa/NR 844,624
Dallas, Texas Independent School District
2,500,000 5.000%, 08/15/29 ............................................. Aaa/AAA 2,639,075
Davis County, Utah School District
575,000 5.000%, 06/01/15 (pre-refunded) .............................. Aaa/NR 610,109
675,000 5.150%, 06/01/17 (pre-refunded) .............................. Aaa/NR 724,606
Dripping Springs, Texas
725,000 4.375%, 08/15/22 ............................................. Aaa/AAA 735,056
Eagle Mountain & Saginaw, Texas Independent
School District
300,000 4.750%, 08/15/21 ............................................. Aaa/AAA 313,134
525,000 4.750%, 08/15/23 ............................................. Aaa/AAA 546,052
Frisco, Texas Independent School District
1,260,000 5.000%, 07/15/26 ............................................. Aaa/NR 1,328,645
RATING
FACE MOODY'S/
AMOUNT GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
SCHOOL DISTRICT (CONTINUED)
Galena Park, Texas Independent School District
$ 295,000 4.625%, 08/15/25 ............................................. Aaa/NR $ 302,941
Iron County, Utah School District
1,375,000 4.000%, 01/15/18 ............................................. Aaa/NR 1,372,553
2,115,000 4.000%, 01/15/20 ............................................. Aaa/NR 2,091,693
1,260,000 5.000%, 01/15/21 ............................................. Aaa/NR 1,360,649
Jacksboro, Texas Independent School District
815,000 4.700%, 02/15/23 ............................................. NR/AAA 847,584
La Feria, Texas Independent School District
210,000 4.400%, 02/15/24 ............................................. Aaa/NR 211,275
Lancaster, Texas School District
300,000 4.375%, 02/15/22 ............................................. Aaa/AAA 303,360
Lindale, Texas Independent School District
440,000 4.250%, 02/15/21 ............................................. NR/AAA 441,782
1,000,000 4.250%, 02/15/22 ............................................. NR/AAA 1,002,690
445,000 4.375%, 02/15/23 ............................................. NR/AAA 449,072
Lovejoy, Texas Independent School District
200,000 4.500%, 02/15/24 ............................................. Aaa/AAA 202,436
Muleshoe, Texas Independent School District
380,000 4.500%, 02/15/22 ............................................. NR/AAA 380,304
250,000 4.500%,0 2/15/23 ............................................. NR/AAA 250,155
200,000 4.500%, 02/15/24 ............................................. NR/AAA 200,100
220,000 4.500%, 02/15/25 ............................................. NR/AAA 220,084
Navasota, Texas Independent School District
475,000 5.000%, 08/15/23 FGIC Insured ................................ Aaa/NR 503,015
North Summit County, Utah School District
760,000 5.000%, 02/01/23 ............................................. Aaa/NR 812,812
800,000 5.000%, 02/01/24 ............................................. Aaa/NR 853,432
Prosper, Texas Independent School District
395,000 4.125%, 08/15/21 ............................................. NR/AAA 392,199
Southern, Texas Independent School District
910,000 4.500%, 02/01/26 ............................................. Aaa/AAA 916,716
Spring, Texas Independent School District
300,000 4.750%, 08/15/23 ............................................. Aaa/AAA 310,482
RATING
FACE MOODY'S/
AMOUNT GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
SCHOOL DISTRICT (CONTINUED)
Tooele County, Utah School District
$ 670,000 4.000%, 06/01/20 ............................................. Aaa/AAA $ 654,329
Van, Texas Independent School District
750,000 4.875%, 02/15/26 ............................................. Aaa/AAA 788,175
Washington County, Utah
440,000 5.000%, 10/01/18 XLCA Insured ................................ Aaa/NR 471,139
465,000 5.000%, 10/01/19 XLCA Insured ................................ Aaa/NR 497,587
490,000 5.000%, 10/01/20 XLCA Insured ................................ Aaa/NR 523,663
510,000 5.000%, 10/01/21 XLCA Insured ................................ Aaa/NR 544,338
535,000 5.000%, 10/01/22 XLCA Insured ................................ Aaa/NR 569,187
565,000 5.000%, 10/01/23 XLCA Insured ................................ Aaa/NR 599,561
320,000 5.000%, 10/01/24 XLCA Insured ................................ Aaa/NR 339,574
Washoe County, Nevada School District
200,000 4.625%, 06/01/23 FGIC Insured ................................ Aaa/AAA 205,630
Weber County, Utah School District
750,000 5.000%, 06/15/18 ............................................. Aaa/NR 791,835
Yakima County, Washington School District #208
750,000 4.500%, 12/01/23 FSA Insured ................................. Aaa/NR 756,007
-------------
Total School District ........................................ 29,322,415
-------------
Total General Obligation Bonds ............................... 51,319,015
-------------
REVENUE BONDS (75.5%)
AIRPORT (1.2%)
Clark County, Nevada Passenger Facility Charge
255,000 4.750%, 07/01/22 MBIA Insured AMT ............................ Aaa/AAA 259,478
Hillsborough County, Florida Aviation Authority
2,185,000 5.250%, 10/01/23 MBIA Insured AMT ............................ Aaa/AAA 2,314,396
-------------
Total Airport ................................................ 2,573,874
-------------
COUNTY (0.4%)
Davis County, Utah Lease Revenue DMV Project
78,000 5.400%, 11/01/17 ............................................. NR/NR* 78,096
83,000 5.450%, 11/01/18 ............................................. NR/NR* 83,100
87,000 5.500%, 11/01/19 ............................................. NR/NR* 87,106
92,000 5.550%, 11/01/20 ............................................. NR/NR* 92,112
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
COUNTY (CONTINUED)
Davis County, Utah Lease Revenue DMV Project
(continued)
$ 97,000 5.600%, 11/01/21 ............................................. NR/NR* $ 97,115
103,000 5.650%, 11/01/22 ............................................. NR/NR* 103,125
108,000 5.700%, 11/01/23 ............................................. NR/NR* 108,133
115,000 5.700%, 11/01/24 ............................................. NR/NR* 115,143
121,000 5.750%, 11/01/25 ............................................. NR/NR* 121,150
128,000 5.750%, 11/01/26 ............................................. NR/NR* 128,148
-------------
Total County ................................................. 1,013,228
-------------
EDUCATION (10.8%)
Carmel, Indiana 2002 School Building Corp.
1,235,000 4.300%, 01/15/23 FSA Insured ................................. NR/AAA 1,239,360
1,525,000 4.300%, 07/15/23 FSA Insured ................................. NR/AAA 1,530,383
Clinton Prairie, Indiana Community School Building
675,000 4.625%, 01/15/19 FGIC Insured ................................ Aaa/AAA 704,234
Florida State Board of Education Public Education
210,000 4.500%, 06/01/25 FSA Insured ................................. Aaa/AAA 213,079
Laredo, Texas Independent School District Public
Facility Corp.
190,000 5.000%, 08/01/24 AMBAC Insured ............................... Aaa/AAA 198,673
Nevada System Higher Education Certificates
of Participation
1,000,000 5.000%, 07/01/25 AMBAC Insured ............................... NR/AAA 1,068,660
Salt Lake County, Utah Westminster College Project
115,000 5.050%, 10/01/10 ............................................. NR/BBB 117,545
100,000 5.500%, 10/01/19 ............................................. NR/BBB 103,366
1,200,000 5.000%, 10/01/22 ............................................. NR/BBB 1,228,932
1,250,000 5.000%, 10/01/25 ............................................. NR/BBB 1,279,237
1,000,000 5.750%, 10/01/27 ............................................. NR/BBB 1,024,080
Texas State College Student Loan Revenue
100,000 5.000%, 08/01/22 AMT ......................................... Aa1/AA 102,694
Texas State University System Financing Revenue
655,000 4.375%, 03/15/23 FSA Insured ................................. Aaa/AAA 657,875
Tyler, Texas Independent School District
325,000 5.000%, 02/15/26 FSA Insured ................................. Aaa/AAA 343,853
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
EDUCATION (CONTINUED)
University of Nevada University Revenues
$ 190,000 4.500%, 07/01/24 MBIA Insured ................................ Aaa/AAA $ 194,490
University of Utah University Revenues
770,000 5.000%, 04/01/18 MBIA Insured ................................ Aaa/AAA 828,043
Utah County, Utah School Facility Revenue
1,400,000 6.500%, 12/01/25 ............................................. NR/NR* 1,400,798
Utah State Board of Regents Auxiliary & Campus Facility
1,000,000 4.125%, 04/01/20 MBIA Insured ................................ Aaa/AAA 993,390
Utah State Board of Regents Dixie State College
120,000 5.500%, 05/01/14 MBIA Insured ................................ Aaa/AAA 130,649
130,000 5.500%, 05/01/15 MBIA Insured ................................ Aaa/AAA 141,471
400,000 5.100%, 05/01/21 MBIA Insured ................................ Aaa/AAA 421,284
Utah State Board of Regents Lease Revenue
410,000 4.500%, 05/01/20 AMBAC Insured .............................. Aaa/AAA 422,903
425,000 4.500%, 05/01/21 AMBAC Insured .............................. Aaa/AAA 437,376
450,000 4.625%, 05/01/22 AMBAC Insured .............................. Aaa/AAA 466,367
120,000 4.650%, 05/01/23 AMBAC Insured .............................. Aaa/AAA 124,406
Utah State Board of Regents Office Facility Revenue
450,000 5.050%, 02/01/20 MBIA Insured ................................ Aaa/AAA 471,915
360,000 5.125%, 02/01/22 MBIA Insured ................................ Aaa/AAA 379,271
Utah State Board of Regents Revenue
2,885,000 4.500%, 08/01/18 MBIA Insured ................................ Aaa/AAA 2,971,839
250,000 5.250%, 04/01/24 MBIA Insured ................................ Aaa/AAA 270,280
500,000 5.000%, 05/01/26 ............................................. Aa/AAA 530,970
Utah State Board of Regents Revenue University of Utah
1,045,000 5.000%, 04/01/23 MBIA Insured ................................ Aaa/AAA 1,110,898
Utah State Board of Regents Revenue University of
Utah Hospital Revenue
1,595,000 5.000%, 08/01/19 MBIA Insured ................................ Aaa/AAA 1,686,298
Weber State University, Utah Revenue
100,000 5.250%, 04/01/24 FSA Insured ................................. Aaa/AAA 105,565
Weber State University, Utah Revenue Student
Facilities System Series A
300,000 5.100%, 04/01/16 ............................................. NR/AA 317,292
425,000 5.250%, 04/01/19 ............................................. NR/AA 453,764
-------------
Total Education .............................................. 23,671,240
-------------
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
HEALTHCARE (0.6%)
Harris County, Texas Health Facility Development Corp.
$ 145,000 5.000%, 11/15/28 AMBAC Insured ............................... NR/AAA $ 149,038
Lee Memorial Health System, Florida
Hospital Revenue
450,000 4.250%, 04/01/22 MBIA Insured ................................ Aaa/AAA 451,530
Murray City, Utah Hospital Revenue
595,000 5.000%, 05/15/22 MBIA Insured ................................ Aaa/AAA 597,553
Tarrant County, Texas Health Facilities Revenue
225,000 5.000%, 02/15/26 ............................................. Aaa/AAA 229,250
-------------
Total Healthcare ............................................. 1,427,371
-------------
HOUSING (10.6%)
Florida Housing Finance Corp. Revenue AMT
435,000 4.750%, 01/01/16 ............................................. Aa2/AA 448,159
790,000 5.000%, 07/01/21 ............................................. Aa2/AA 820,131
Henderson, Nevada Local Improvement District
150,000 5.000%, 09/01/15 ............................................. NR/NR* 154,567
200,000 5.000%, 09/01/16 ............................................. NR/NR* 206,078
200,000 5.050%, 09/01/17 ............................................. NR/NR* 206,060
200,000 5.100%, 09/01/18 ............................................. NR/NR* 207,470
Indiana Housing & Community Development Authority
1,500,000 4.900%, 07/01/26 AMT ......................................... Aaa/NR 1,540,605
Indiana State Housing Finance Authority Single Family
245,000 4.850%, 07/01/22 AMT ......................................... Aaa/NR 250,441
Indianapolis, Indiana Multi-Family
500,000 4.850%, 01/01/21 AMT ......................................... Aaa/NR 513,790
Miami-Dade County, Florida Housing Finance Authority
535,000 5.000%, 11/01/23 FSA Insured AMT ............................. NR/AAA 553,618
Nevada Housing Multi-Family LOC US Bank
1,000,000 4.750%, 04/01/39 AMT ......................................... NR/AA 1,002,350
Orange County, Florida Housing Finance Authority
245,000 5.150%, 03/01/22 ............................................. Aaa/NR 249,030
Provo City, Utah Housing Authority
500,000 5.800%, 07/20/22 GNMA Collateralized ......................... Aaa/NR 513,125
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
HOUSING (CONTINUED)
Seattle, Washington Housing Authority
$ 730,000 4.400%, 11/01/21 AMT ......................................... NR/AAA $ 722,904
Snohomish County, Washington Housing Authority
185,000 4.875%, 09/01/12 AMT ......................................... NR/NR* 184,943
225,000 5.000%, 09/01/13 AMT ......................................... NR/NR* 226,123
185,000 5.000%, 09/01/14 AMT ......................................... NR/NR* 185,339
145,000 5.100%, 09/01/15 AMT ......................................... NR/NR* 145,796
South Dakota Housing Development Authority
1,250,000 4.900%, 05/01/26 AMT ......................................... Aa1/AAA 1,286,225
Texas State Housing Revenue
500,000 4.800%, 09/01/27 AMT ......................................... Aa1/AAA 507,750
Utah Housing Corporation Single Family Housing
270,000 4.000%, 07/01/11 AMT ......................................... Aaa/AAA 269,449
60,000 5.250%, 07/01/23 AMT ......................................... Aa2/AA 61,386
650,000 5.000%, 01/01/32 AMT ......................................... Aa2/AA 661,999
Utah Housing Corporation Single Family Mortgage
235,000 4.000%, 07/01/11 AMT ......................................... Aaa/AAA 235,660
335,000 4.600%, 07/01/15 AMT ......................................... Aaa/AAA 343,331
240,000 4.650%, 07/01/16 AMT ......................................... Aaa/AAA 246,283
50,000 5.150%, 07/01/23 AMT ......................................... Aaa/AAA 50,000
250,000 4.875%, 07/01/23 AMT ......................................... Aa3/AA- 257,615
1,310,000 5.000%, 07/01/25 AMT ......................................... Aa3/AA- 1,347,322
880,000 5.100%, 01/01/26 AMT ......................................... Aa3/AA- 902,167
975,000 5.000%, 07/01/31 AMT ......................................... Aa2/AA 995,602
Utah State Housing Agency Housing Revenue
140,000 5.650%, 07/01/27 AMT ......................................... Aa2/AA 145,043
Utah State Housing Corporation Single Family
Housing Revenue
1,720,000 5.125%, 07/01/24 AMT ......................................... Aa3/AA- 1,775,453
Utah State Housing Finance Agency
5,000 6.350%, 07/01/11 Mezzanine Series G-1 ........................ AAA/NR 5,024
255,000 5.700%, 07/01/15 AMT ......................................... Aa3/AA- 261,462
130,000 5.650%, 07/01/16 Series 1994C ................................ Aaa/AAA 131,899
50,000 5.400%, 07/01/16 AMT ......................................... Aa2/AA 50,720
75,000 6.000%, 07/01/17 AMT ......................................... Aaa/AAA 76,405
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
HOUSING (CONTINUED)
Utah State Housing Finance Agency (continued)
$ 795,000 5.500%, 07/01/18 AMT ......................................... Aa3/AA- $ 822,841
90,000 5.300%, 07/01/18 AMT ......................................... Aaa/AAA 93,690
100,000 5.000%, 07/01/18 AMT ......................................... Aaa/AAA 101,825
170,000 5.400%, 07/01/20 AMT ......................................... Aa2/AA 174,935
375,000 5.600%, 07/01/23 AMT ......................................... Aa2/AA 385,496
105,000 5.700%, 07/01/26 MBIA Insured ................................ Aaa/AAA 105,595
Washington State Housing Finance Commission
2,290,000 4.800%, 12/01/21 AMT ......................................... Aaa/NR 2,323,136
Wyoming Community Development Authority
Housing Revenue
150,000 4.600%, 12/01/12 AMT ......................................... Aa1/AA+ 153,088
225,000 4.350%, 12/01/16 AMT ......................................... Aa1/AA+ 227,419
580,000 4.700%, 06/01/17 AMT ......................................... Aa1/AA+ 596,872
520,000 4.700%, 12/01/17 AMT ......................................... Aa1/AA+ 535,127
120,000 5.000%, 12/01/22 ............................................. Aa1/AA+ 124,337
-------------
Total Housing ................................................ 23,385,685
-------------
INDUSTRIAL DEVELOPMENT & POLLUTION CONTROL (0.6%)
Sandy City, Utah Industrial Development, H
Shirley Wright Project, Refunding Bonds, LOC
Olympus Bank
250,000 6.125%, 08/01/16 ............................................. NR/AAA 250,188
Utah County Environmental Improvement Revenue
935,000 5.050%, 11/01/17 ............................................. Baa1/BBB+ 990,922
-------------
Total Industrial Development & Pollution Control ............. 1,241,110
-------------
LEASE (8.5%)
Celebration Community Development District, Florida
290,000 5.000%, 05/01/22 MBIA Insured ................................ Aaa/AAA 306,834
Clark County Nevada Improvement District
750,000 5.125%, 12/01/19 ............................................. NR/NR 771,037
Marion County, Indiana Convention & Recreational
Facilities Authority
390,000 5.000%, 06/01/27 MBIA Insured ................................ Aaa/AAA 397,726
Murray City, Utah Municipal Building Authority
520,000 5.050%, 12/01/15 AMBAC Insured ............................... Aaa/NR 549,318
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
LEASE (CONTINUED)
New Albany, Indiana Development Authority
$ 500,000 4.250%, 02/01/22 ............................................. NR/A- $ 486,410
Red River, Texas Higher Education TCU Project
1,000,000 4.375%, 03/15/25 ............................................. Aa3/NR 990,650
Salt Lake County, Utah Municipal Building Authority
3,900,000 5.200%, 10/15/20 AMBAC Insured (pre-refunded) ................ Aaa/AAA 4,166,292
Spanish Fork, Utah Charter School
2,000,000 5.550%, 11/15/21 ............................................. NR/NR* 2,027,140
Utah County, Utah Municipal Building Authority
120,000 5.500%, 11/01/16 AMBAC Insured ............................... Aaa/NR 129,844
240,000 5.500%, 11/01/17 AMBAC Insured ............................... Aaa/NR 259,687
Utah State Building Ownership Authority
465,000 5.000%, 05/15/21 ............................................. Aa1/AA+ 499,494
1,755,000 5.250%, 05/15/23 ............................................. Aa1/AA+ 1,890,170
510,000 5.000%, 05/15/23 ............................................. Aa1/AA+ 546,190
1,845,000 5.250%, 05/15/24 ............................................. Aa1/AA+ 1,984,667
1,080,000 5.000%, 05/15/25 ............................................. Aa1/AA+ 1,143,299
Washington County - St. George, Utah Interlocal Agency
1,000,000 5.125%, 12/01/17 AMBAC Insured ............................... NR/AAA 1,023,610
100,000 5.125%, 12/01/22 AMBAC Insured ............................... NR/AAA 102,126
West Bountiful, Utah Courthouse
410,000 5.000%, 05/01/19 ............................................. NR/A- 442,103
West Valley City, Utah
865,000 5.000%, 08/01/21 AMBAC Insured ............................... Aaa/AAA 923,855
-------------
Total Lease .................................................. 18,640,452
-------------
TAX REVENUE (20.7%)
Bay County, Florida Sales Tax
175,000 4.750%, 09/01/23 FSA Insured ................................. Aaa/NR 178,005
Bluffdale City, Utah Series 2004
295,000 6.000%, 12/01/13 ............................................. NR/NR* 299,304
310,000 6.000%, 12/01/14 ............................................. NR/NR* 314,851
330,000 6.000%, 12/01/15 ............................................. NR/NR* 330,871
350,000 6.000%, 12/01/16 ............................................. NR/NR* 351,046
370,000 6.000%, 12/01/17 ............................................. NR/NR* 371,140
395,000 6.000%, 12/01/18 ............................................. NR/NR* 396,288
420,000 6.000%, 12/01/19 ............................................. NR/NR* 421,407
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
TAX REVENUE (CONTINUED)
Bluffdale, Utah Sales Tax
$ 1,975,000 5.500%, 08/01/23 ............................................. NR/NR* $ 2,017,561
Bountiful, Utah Special Improvement District
Special Assessment
203,000 5.000%, 06/01/14 ............................................. NR/NR* 203,104
213,000 5.150%, 06/01/15 ............................................. NR/NR* 213,185
224,000 5.300%, 06/01/16 ............................................. NR/NR* 224,193
236,000 5.500%, 06/01/17 ............................................. NR/NR* 236,307
249,000 5.650%, 06/01/18 ............................................. NR/NR* 249,391
Cache County, Utah Sales Tax
855,000 5.000%, 12/15/19 FGIC Insured ................................ Aaa/AAA 902,153
Clark County, Nevada Improvement District
250,000 5.000%, 08/01/16 ............................................. NR/NR* 257,542
Coral Canyon, Utah Special Service District
110,000 5.000%, 07/15/13 ............................................. NR/NR* 113,183
250,000 5.500%, 07/15/18 ............................................. NR/NR* 260,275
Fishers, Indiana Redevelopment Authority Lease
175,000 4.500%, 07/15/20 AMBAC Insured ............................... Aaa/AAA 179,174
Henderson, Nevada Local Improvement District
100,000 4.500%, 09/01/12 ............................................. NR/NR* 100,292
300,000 5.000%, 09/01/14 ............................................. NR/NR* 309,021
300,000 5.000%, 09/01/15 ............................................. NR/NR* 307,827
Holladay, Utah Redevelopment Agency
3,000,000 4.900%, 12/30/20 ............................................. NR/NR* 3,010,800
Jordanelle, Utah Special Service District
186,000 5.000%, 11/15/14 ............................................. NR/NR* 187,800
196,000 5.100%, 11/15/15 ............................................. NR/NR* 198,105
206,000 5.200%, 11/15/16 ............................................. NR/NR* 208,062
216,000 5.300%, 11/15/17 ............................................. NR/NR* 218,197
228,000 5.400%, 11/15/18 ............................................. NR/NR* 230,396
240,000 5.500%, 11/15/19 ............................................. NR/NR* 242,563
253,000 5.600%, 11/15/20 ............................................. NR/NR* 255,651
268,000 5.700%, 11/15/21 ............................................. NR/NR* 270,806
283,000 5.800%, 11/15/22 ............................................. NR/NR* 285,960
299,000 6.000%, 11/15/23 ............................................. NR/NR* 302,119
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
TAX REVENUE (CONTINUED)
Jordanelle, Utah Special Service
Improvement District
$ 275,000 8.000%, 10/01/11 ............................................. NR/NR* $ 283,654
Lehi, Utah Sales Tax
610,000 5.000%, 06/01/21 FSA Insured ................................. Aaa/AAA 650,772
790,000 5.000%, 06/01/24 FSA Insured ................................. Aaa/AAA 838,111
Mesquite, Nevada New Special Improvement District
185,000 4.600%, 08/01/11 ............................................. NR/NR* 184,835
195,000 4.750%, 08/01/12 ............................................. NR/NR* 194,928
230,000 4.900%, 08/01/13 ............................................. NR/NR* 231,134
140,000 5.250%, 08/01/17 ............................................. NR/NR* 141,081
315,000 5.350%, 08/01/19 ............................................. NR/NR* 317,419
135,000 5.400%, 08/01/20 ............................................. NR/NR* 136,127
500,000 5.500%, 08/01/25 ............................................. NR/NR* 504,535
Mountain Regional Water District, Utah
Special Assessment
1,800,000 7.000%, 12/01/18 ............................................. NR/NR* 1,853,748
Mountain Regional Water, Utah Special
Service District
2,000,000 5.000%, 12/15/20 MBIA Insured ................................ Aaa/AAA 2,122,720
North Ogden, Utah Sales Tax
195,000 5.000%, 11/01/24 XLCA Insured ................................ Aaa/AAA 206,368
Payson City Utah Sales Tax
445,000 5.000%, 08/01/21 FSA Insured ................................. NR/AAA 477,534
Plainfield, Indiana Independent Redevelopment
Authority
1,070,000 4.375%, 08/01/20 CIFG Assurance North America,
Inc. Insured .............................................. Aaa/NR 1,082,080
Salt Lake City, Utah Sales Tax
265,000 5.250%, 02/01/13 ............................................. NR/AAA 284,220
1,320,000 5.250%, 02/01/15 ............................................. NR/AAA 1,410,064
100,000 5.250%, 02/01/17 ............................................. NR/AAA 106,680
Salt Lake County, Utah Sales Tax
955,000 5.000%, 02/01/21 ............................................. NR/AAA 1,021,000
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
TAX REVENUE (CONTINUED)
Salt Lake County, Utah Sales Tax (continued)
$ 1,725,000 5.000%, 08/01/21 ............................................. NR/AAA $ 1,850,425
1,005,000 5.000%, 02/01/22 ............................................. NR/AAA 1,073,028
1,060,000 5.000%, 02/01/23 ............................................. NR/AAA 1,130,236
1,115,000 5.000%, 02/01/24 ............................................. NR/AAA 1,191,266
Sandy City, Utah Sales Tax
520,000 5.000%, 09/15/18 AMBAC Insured ............................... Aaa/AAA 547,851
605,000 5.000%, 09/15/20 AMBAC Insured ............................... Aaa/AAA 636,145
South Jordan, Utah Sales Tax
570,000 5.000%, 08/15/15 AMBAC Insured ............................... Aaa/AAA 602,878
South Jordan, Utah Special Assignment
1,000,000 6.875%, 11/01/17 ............................................. NR/NR* 1,022,700
South Weber City, Utah
525,000 5.000%, 01/15/24 MBIA Insured ................................ Aaa/AAA 554,584
Springville, Utah Special Improvement District
400,000 5.500%, 1/15/17 .............................................. NR/NR* 400,572
423,000 5.650%, 1/15/18 .............................................. NR/NR* 423,626
446,000 5.800%, 1/15/19 .............................................. NR/NR* 446,656
472,000 5.900%, 1/15/20 .............................................. NR/NR* 472,717
500,000 6.000%, 1/15/21 .............................................. NR/NR* 500,785
Utah Transportation Authority
250,000 4.250%, 06/15/25 FSA Insured ................................. Aaa/AAA 245,600
Utah Water Finance Agency
775,000 5.100%, 07/01/18 AMBAC Insured ............................... Aaa/NR 819,400
510,000 5.000%, 07/01/18 AMBAC Insured ............................... Aaa/NR 540,998
260,000 5.000%, 06/01/19 MBIA Insured ................................ Aaa/AAA 264,553
685,000 5.000%, 07/01/19 AMBAC Insured ............................... Aaa/NR 727,443
Wasatch County, Utah Building Authority
130,000 5.000%, 10/01/15 ............................................. A3/NR 135,888
135,000 5.000%, 10/01/16 ............................................. A3/NR 140,792
Wasatch County, Utah Sales Tax
205,000 5.000%, 12/01/16 AMBAC Insured ............................... Aaa/AAA 217,790
210,000 5.000%, 12/01/17 AMBAC Insured ............................... Aaa/AAA 222,191
225,000 5.000%, 12/01/18 AMBAC Insured ............................... Aaa/AAA 237,454
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
TAX REVENUE (CONTINUED)
Washington City, Utah Sales Tax
$ 680,000 5.250%, 11/15/17 AMBAC Insured ............................... Aaa/AAA $ 737,338
Washoe County, Nevada Tax Revenue
210,000 5.000%, 12/01/23 MBIA Insured ................................ Aaa/AAA 213,854
Weber County, Utah Sales Tax
385,000 5.000%, 07/01/23 AMBAC Insured ............................... Aaa/NR 406,368
West Valley City, Utah Redevelopment Agency
1,625,000 5.000%, 03/01/21 ............................................. NR/A- 1,697,930
320,000 5.000%, 03/01/22 ............................................. NR/A- 333,914
350,000 5.000%, 03/01/23 ............................................. NR/A- 364,732
1,000,000 5.000%, 03/01/24 ............................................. NR/A- 1,040,700
West Valley City, Utah Sales Tax
250,000 5.000%, 07/15/20 AMBAC Insured ............................... Aaa/AAA 263,177
340,000 5.000%, 07/15/21 MBIA Insured ................................ Aaa/AAA 359,295
-------------
Total Tax Revenue ............................................ 45,516,475
-------------
TRANSPORTATION (4.2%)
Florida State Turnpike Authority Turnpike Revenue
500,000 4.500%, 07/01/22 MBIA Insured ................................ Aaa/AAA 515,065
Port of Seattle, Washington
200,000 5.100%, 04/01/24 AMT FGIC Insured ............................ Aaa/AAA 203,654
Utah Transit Authority Sales Tax & Transportation
Revenue
1,000,000 5.400%, 12/15/16 FSA Insured (pre-refunded) .................. Aaa/AAA 1,026,730
3,300,000 4.125%, 06/15/21 FSA Insured ................................. Aaa/AAA 3,313,431
3,450,000 4.125%, 06/15/22 FSA Insured ................................. Aaa/AAA 3,424,608
590,000 5.000%, 06/15/24 FSA Insured ................................. Aaa/AAA 632,551
100,000 5.000%, 06/15/25 FSA Insured ................................. Aaa/AAA 107,212
-------------
Total Transportation ......................................... 9,223,251
-------------
UTILITY (10.4%)
Alaska Industrial Development & Export Authority
400,000 4.625%, 12/01/16 AMBAC Insured AMT ........................... NR/AAA 407,988
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
UTILITY (CONTINUED)
Cowlitz County, Washington Public Utility District
Electric Revenue
$ 1,000,000 4.500%, 09/01/26 MBIA Insured ................................ Aaa/AAA $ 1,010,890
Eagle Mountain, Utah Gas & Electric
1,385,000 4.250%, 06/01/20 Radian Insured .............................. Aa3/AA 1,372,383
1,440,000 5.000%, 06/01/21 Radian Insured .............................. Aa3/AA 1,508,371
1,515,000 5.000%, 06/01/22 Radian Insured .............................. Aa3/AA 1,582,584
Garland, Texas Water & Sewer
440,000 4.500%, 03/01/21 AMBAC Insured ............................... NR/AAA 448,884
Indianapolis, Indiana Gas Utility
290,000 5.000%, 08/15/24 AMBAC Insured ............................... Aaa/AAA 294,385
Intermountain Power Agency Utilities Light &
Power Service, Utah
1,470,000 5.250%, 07/01/15 MBIA Insured ................................ Aaa/AAA 1,517,775
775,000 5.000%, 07/01/18 FSA Insured ................................. Aaa/AAA 824,391
1,380,000 5.000%, 07/01/19 MBIA Insured ................................ Aaa/AAA 1,432,909
Lower Colorado River Authority, Texas
175,000 5.000%, 05/15/26 FSA Insured ................................. Aaa/AAA 181,368
Manti City, Utah Electric System Revenue
603,000 5.750%, 02/01/17 ............................................. NR/NR* 632,010
Murray City, Utah Utility Electric Revenue
1,340,000 5.000%, 06/01/25 AMBAC Insured ............................... Aaa/NR 1,422,490
St. George, Utah Electric Revenue
1,910,000 4.500%, 06/01/20 FSA Insured ................................. Aaa/NR 1,965,180
Salem, Utah Electric Revenue
125,000 5.300%, 11/01/07 ............................................. NR/NR* 125,661
130,000 5.350%, 11/01/08 ............................................. NR/NR* 131,838
140,000 5.400%, 11/01/09 ............................................. NR/NR* 142,591
Santa Clara Utah Storm Drain Revenue
877,000 5.100%, 09/15/26 ............................................. NR/NR* 897,978
Seattle, Washington Municipal Light & Power
1,360,000 4.500%, 08/01/19 FSA Insured ................................. Aaa/AAA 1,403,126
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
UTILITY (CONTINUED)
Southern Utah Valley Power System
$ 210,000 5.250%, 09/15/13 MBIA Insured ................................ Aaa/AAA $ 226,124
225,000 5.250%, 09/15/14 MBIA Insured ................................ Aaa/AAA 243,355
235,000 5.250%, 09/15/15 MBIA Insured ................................ Aaa/AAA 254,171
185,000 5.125%, 09/15/21 MBIA Insured ................................ Aaa/AAA 196,370
Springville, Utah Electric Revenue
550,000 5.600%, 03/01/09 ............................................. Baa1/NR 564,212
Tacoma, Washington Solid Waste Utility Revenue
1,000,000 5.000%, 12/01/23 XLCA Insured ................................ Aaa/AAA 1,070,960
Utah Assessed Municipal Power System
790,000 5.250%, 12/01/09 ............................................. NR/A- 811,583
1,000,000 5.000%, 04/01/21 FSA Insured ................................. Aaa/AAA 1,055,820
Washington, Utah Electric Revenue
985,000 5.000%, 09/01/21 XLCA Insured ................................ Aaa/NR 1,047,370
-------------
Total Utility ................................................ 22,772,767
-------------
WATER AND SEWER (7.5%)
Ashley Valley, Utah
140,000 9.500%, 01/01/08 AMBAC Insured ............................... Aaa/AAA 142,145
Eagle Mountain, Utah
750,000 5.800%, 11/15/16 ACA Insured ................................. NR/A 792,412
Granger and Hunter, Utah Improvement District
350,000 5.000%, 03/01/18 FSA Insured (pre-refunded) .................. Aaa/NR 355,614
Jordan Valley, Utah Water Conservancy District
715,000 4.375%, 10/01/18 AMBAC Insured ............................... Aaa/AAA 730,337
Mesquite, Texas Waterworks & Sewer
225,000 4.500%, 03/01/24 FSA Insured ................................. Aaa/AAA 228,152
Murray City, Utah
465,000 5.000%, 10/01/17 AMBAC Insured ............................... Aaa/NR 495,323
390,000 5.000%, 10/01/18 AMBAC Insured ............................... Aaa/NR 414,242
440,000 5.000%, 10/01/19 AMBAC Insured ............................... Aaa/NR 467,086
North Davis County, Utah Sewer District
1,350,000 5.000%, 03/01/21 AMBAC Insured ............................... Aaa/NR 1,434,969
Orem, Utah Water & Storm Sewer Revenue
1,720,000 4.500%, 07/15/17 MBIA Insured ................................ Aaa/AAA 1,781,610
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
WATER AND SEWER (CONTINUED)
Pleasant Grove, Utah Water Revenue
$ 450,000 4.300%, 12/01/20 MBIA Insured ................................ Aaa/AAA $ 452,151
Riverton, Utah Water Revenue
100,000 5.350%, 09/01/15 FGIC Insured (pre-refunded) ................. Aaa/NR 105,873
Salt Lake City, Utah Metropolitan Water Revenue
1,200,000 5.375%, 07/01/24 AMBAC Insured (pre-refunded) ................ Aaa/AAA 1,250,040
125,000 5.375%, 07/01/29 AMBAC Insured (pre-refunded) ................ Aaa/AAA 130,213
Smithfield, Utah Water Revenue
90,000 4.750%, 06/01/17 ............................................. NR/NR* 90,028
94,000 4.800%, 06/01/18 ............................................. NR/NR* 94,029
99,000 4.850%, 06/01/19 ............................................. NR/NR* 99,031
103,000 4.900%, 06/01/20 ............................................. NR/NR* 103,032
108,000 5.000%, 06/01/21 ............................................. NR/NR* 108,033
114,000 5.050%, 06/01/22 ............................................. NR/NR* 114,035
120,000 5.100%, 06/01/23 ............................................. NR/NR* 120,042
126,000 5.150%, 06/01/24 ............................................. NR/NR* 126,043
132,000 5.200%, 06/01/25 ............................................. NR/NR* 132,045
139,000 5.250%, 06/01/26 ............................................. NR/NR* 139,047
South Valley, Utah Water Reclamation Facility
710,000 4.375%, 08/15/18 ............................................. NR/AAA 725,059
Upper Trinity Regional Water District, Texas
205,000 4.500%, 08/01/20 AMBAC Insured ............................... Aaa/AAA 209,750
Utah Water Finance Agency
100,000 5.000%, 06/01/14 MBIA Insured ................................ Aaa/AAA 101,792
200,000 5.250%, 07/01/16 AMBAC Insured ............................... Aaa/NR 215,278
250,000 5.375%, 09/01/17 AMBAC Insured ............................... Aaa/NR 272,958
310,000 5.000%, 10/01/17 AMBAC Insured ............................... Aaa/NR 329,009
750,000 5.250%, 10/01/18 AMBAC Insured ............................... Aaa/NR 810,398
465,000 5.000%, 10/01/20 AMBAC Insured ............................... Aaa/NR 490,082
830,000 4.500%, 10/01/22 AMBAC Insured ............................... Aaa/NR 847,729
100,000 5.125%, 07/01/23 AMBAC Insured ............................... Aaa/NR 105,699
870,000 4.500%, 10/01/23 AMBAC Insured ............................... Aaa/NR 887,365
450,000 5.400%, 10/01/24 AMBAC Insured (pre-refunded) ................ Aaa/AAA 470,822
250,000 5.500%, 10/01/29 AMBAC Insured (pre-refunded) ................ Aaa/AAA 262,215
RATING
FACE MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ -------------------------------------------------------------- -------- -------------
WATER AND SEWER (CONTINUED)
Weber-Box Elder, Utah Conservation District
Water Revenue
$ 200,000 6.450%, 11/01/14 (pre-refunded) .............................. Baa3/NR $ 219,286
200,000 6.500%, 11/01/19 (pre-refunded) .............................. Baa3/NR 219,640
335,000 6.900%, 11/01/20 (pre-refunded) .............................. Baa3/NR 372,634
-------------
Total Water and Sewer ........................................ 16,445,248
-------------
Total Revenue Bonds .......................................... 165,910,701
-------------
Total Investments (cost $212,765,181 - note 4) ............... 98.9% 217,229,716
Other assets less liabilities ................................ 1.1 2,465,138
----- -------------
Net Assets ................................................... 100.0% $ 219,694,854
===== =============
PERCENT OF
PORTFOLIO DISTRIBUTION BY QUALITY RATING (UNAUDITED) PORTFOLIO
------------------------------------------------------------------ ----------
Aaa of Moody's or AAA of S&P ..................................... 68.6%
Aa of Moody's or AA of S&P ....................................... 11.5
A of Moody's or S&P .............................................. 2.9
Baa of Moody's or BBB of S&P ..................................... 2.8
Not rated* ....................................................... 14.2
-----
100.0%
=====
* Any security not rated (NR) by any of the approved rating services
has been determined by the Manager to have sufficient credit quality
to be ranked in the top four credit ratings if a credit rating were
to be assigned by a rating service.
PORTFOLIO ABBREVIATIONS:
ACA - American Capital Assurance Financial Guaranty Corp.
AMBAC - American Municipal Bond Assurance Corp.
AMT - Alternative Minimum Tax
CIFG - CDC IXIS Financial Guaranty
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, 2006 (UNAUDITED)
ASSETS
Investments at value (cost $212,765,181) .............................................................. $ 217,229,716
Interest receivable ................................................................................... 3,114,980
Receivable for Fund shares sold ....................................................................... 1,080,157
Other assets .......................................................................................... 13,541
-------------
Total assets .......................................................................................... 221,438,394
-------------
LIABILITIES
Cash overdraft ........................................................................................ 162,112
Payable for investment securities purchased ........................................................... 762,075
Payable for Fund shares redeemed ...................................................................... 348,420
Dividends payable ..................................................................................... 270,911
Distribution and service fees payable ................................................................. 102,760
Management fees payable ............................................................................... 37,194
Accrued expenses ...................................................................................... 60,068
-------------
Total liabilities ..................................................................................... 1,743,540
-------------
NET ASSETS ................................................................................................ $ 219,694,854
=============
Net Assets consist of:
Capital Stock - Authorized an unlimited number of shares, par value $0.01 per share ................... $ 216,159
Additional paid-in capital ............................................................................ 217,154,062
Net unrealized appreciation on investments (note 4) ................................................... 4,464,535
Accumulated net realized loss on investments .......................................................... (1,782,322)
Distributions in excess of net investment income ...................................................... (357,580)
-------------
$ 219,694,854
=============
CLASS A
Net Assets ............................................................................................ $ 143,644,131
=============
Capital shares outstanding ............................................................................ 14,141,355
=============
Net asset value and redemption price per share ........................................................ $ 10.16
=============
Offering price per share (100/96 of $10.16 adjusted to nearest cent) .................................. $ 10.58
=============
CLASS C
Net Assets ............................................................................................ $ 32,277,752
=============
Capital shares outstanding ............................................................................ 3,178,813
=============
Net asset value and offering price per share .......................................................... $ 10.15
=============
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) ......................................................... $ 10.15*
=============
CLASS Y
Net Assets ............................................................................................ $ 43,772,971
=============
Capital shares outstanding ............................................................................ 4,295,780
=============
Net asset value, offering and redemption price per share .............................................. $ 10.19
=============
See accompanying notes to financial statements.
TAX-FREE FUND FOR UTAH
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 2006 (UNAUDITED)
INVESTMENT INCOME:
Interest income .............................................................. $ 5,014,316
EXPENSES:
Management fee (note 3) ...................................................... $ 550,408
Distribution and service fees (note 3) ....................................... 310,893
Transfer and shareholder servicing agent fees ................................ 68,951
Trustees' fees and expenses (note 8) ......................................... 58,351
Legal fees (note 3) .......................................................... 40,567
Shareholders' reports and proxy statements ................................... 27,481
Fund accounting fees ......................................................... 24,394
Registration fees and dues ................................................... 18,163
Custodian fees ............................................................... 14,042
Auditing and tax fees ........................................................ 9,330
Insurance .................................................................... 7,538
Chief compliance officer (note 3) ............................................ 2,291
Miscellaneous ................................................................ 27,861
Total expenses ............................................................... 1,160,270
-------------
Management fee waived (note 3) ............................................... (330,246)
Expenses paid indirectly (note 6) ............................................ (10,465)
-------------
Net expenses ................................................................. 819,559
-------------
Net investment income ........................................................ 4,194,757
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from securities transactions ........................ 608,799
Change in unrealized appreciation on investments ............................. 5,824,372
-------------
Net realized and unrealized gain (loss) on investments ....................... 6,433,171
-------------
Net increase in net assets resulting from operations ............................... $ 10,627,928
=============
See accompanying notes to financial statements.
TAX-FREE FUND FOR UTAH
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED
DECEMBER 31, 2006 YEAR ENDED
(UNAUDITED) JUNE 30, 2006
------------- -------------
OPERATIONS:
Net investment income .......................................................... $ 4,194,757 $ 7,660,792
Net realized gain (loss) from securities transactions .......................... 608,799 349,428
Change in unrealized appreciation on investments ............................... 5,824,372 (7,697,675)
------------- -------------
Change in net assets from operations ........................................... 10,627,928 312,545
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 10):
Class A Shares:
Net investment income .......................................................... (2,958,644) (5,675,675)
Class C Shares:
Net investment income .......................................................... (553,524) (1,052,465)
Class Y Shares:
Net investment income .......................................................... (920,568) (1,389,390)
------------- -------------
Change in net assets from distributions ........................................ (4,432,736) (8,117,530)
------------- -------------
CAPITAL SHARE TRANSACTIONS (NOTE 7):
Proceeds from shares sold ...................................................... 21,064,532 90,295,939
Reinvested dividends and distributions ......................................... 2,654,760 5,246,203
Cost of shares redeemed ........................................................ (26,028,975) (43,527,443)
------------- -------------
Change in net assets from capital share transactions ......................... (2,309,683) 52,014,699
------------- -------------
Change in net assets ......................................................... 3,885,509 44,209,714
NET ASSETS:
Beginning of period ............................................................ 215,809,345 171,599,631
------------- -------------
End of period* ................................................................. $ 219,694,854 $ 215,809,345
============= =============
* Includes distributions in excess of net investment income of: ................ $ (357,580) $ (119,601)
============= =============
See accompanying notes to financial statements.
TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006 (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 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
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.
f) NEW ACCOUNTING PRONOUNCEMENTS: In July 2006, the Financial Accounting
Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting
for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for
how uncertain tax positions should be recognized, measured, presented and
disclosed in the financial statements. FIN 48 requires the evaluation of
tax positions taken or expected to be taken in the course of preparing the
Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority.
Tax positions not deemed to meet the more-likely-than-not threshold would
be recorded as a tax benefit or expense in the current year. Adoption of
FIN 48 is required to be implemented no later than June 29, 2007 and is to
be applied to all open tax years as of that date. At this time, management
does not believe the adoption of FIN 48 will result in any material impact
on the Fund's financial statements.
In September 2006, FASB issued FASB Statement No. 157, "Fair Value
Measurement" ("SFAS 157"), which defines fair value, establishes a
framework for measuring fair value, and expands disclosures about fair
value measurements. SFAS 157 is effective for fiscal years beginning after
November 15, 2007, and interim periods within those fiscal years. The Fund
believes adoption of SFAS 157 will have no material impact 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 average net assets.
For the six months ended December 31, 2006, the Fund incurred management
fees of $550,408 of which $330,246 was waived. The Manager has contractually
undertaken to waive fees and/or reimburse Fund expenses during the period July
1, 2006 through June 30, 2007 so that total Fund expenses would not exceed 0.85%
for Class A Shares, 1.65% for Class C Shares or 0.65% for Class Y Shares.
Under a 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, as amended. 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, 2006,
distribution fees on Class A Shares amounted to $144,031, of which the
Distributor retained $2,545.
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, 2006,
amounted to $125,147. 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, 2006 amounted to $41,715. The total of these payments with
respect to Class C Shares amounted to $166,862, of which the Distributor
retained $32,227.
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, 2006, total commissions on sales of Class A Shares amounted to
$197,792, of which the Distributor received $16,572.
c) OTHER RELATED PARTY TRANSACTIONS:
For the six months ended December 31, 2006, the Fund incurred $39,829 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 at that firm.
4. PURCHASES AND SALES OF SECURITIES
During the six months ended December 31, 2006, purchases of securities and
proceeds from the sales of securities aggregated $25,742,481 and $26,069,278,
respectively.
At December 31, 2006, the aggregate tax cost for all securities was
$212,734,657. At December 31, 2006, the aggregate gross unrealized appreciation
for all securities in which there is an excess of value over tax cost amounted
to $4,550,009 and aggregate gross unrealized depreciation for all securities in
which there is an excess of tax cost over value amounted to $54,950, for a net
unrealized depreciation of $4,495,059.
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
meeting comparable quality standards of issuers in certain states that do not
tax the interest on obligations of Utah issuers and that provide income which is
exempt from both regular Federal and Utah income taxes. At December 31, 2006,
the Fund had 67% 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.
7. CAPITAL SHARE TRANSACTIONS
Transactions in Capital Shares of the Fund were as follows:
SIX MONTHS ENDED
DECEMBER 31, 2006 YEAR ENDED
(UNAUDITED) JUNE 30, 2006
---------------------------------- ----------------------------------
SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
CLASS A SHARES:
Proceeds from shares sold ................ 1,003,328 $ 10,136,925 3,497,622 $ 35,254,242
Reinvested distributions ................. 189,013 1,910,612 369,013 3,717,136
Cost of shares redeemed .................. (1,456,716) (14,698,708) (1,747,696) (17,557,375)
------------ ------------ ------------ ------------
Net change ............................. (264,375) (2,651,171) 2,118,939 21,414,003
------------ ------------ ------------ ------------
CLASS C SHARES:
Proceeds from shares sold ................ 308,893 3,121,285 1,195,649 12,049,190
Reinvested distributions ................. 32,786 331,233 63,534 639,693
Cost of shares redeemed .................. (586,608) (5,925,617) (524,023) (5,274,452)
------------ ------------ ------------ ------------
Net change ............................. (244,929) (2,473,099) 735,160 7,414,431
------------ ------------ ------------ ------------
CLASS Y SHARES:
Proceeds from shares sold ................ 770,068 7,806,322 4,237,512 42,992,507
Reinvested distributions ................. 40,651 412,915 88,225 889,374
Cost of shares redeemed .................. (532,334) (5,404,650) (2,049,983) (20,695,616)
------------ ------------ ------------ ------------
Net change ............................. 278,385 2,814,587 2,275,754 23,186,265
------------ ------------ ------------ ------------
Total transactions in Fund
shares ................................... (230,919) $ (2,309,683) 5,129,853 $ 52,014,699
============ ============ ============ ============
8. TRUSTEES' FEES AND EXPENSES
At December 31, 2006 there were 7 Trustees, one of which is affiliated
with the Manager and is not paid any fees. The total amount of Trustees' service
and attendance fees paid during the six months ended December 31, 2006 was
$35,792, to cover carrying out their responsibilities and attendance at
regularly scheduled quarterly Board Meetings and meetings of the Independent
Trustees held prior to each quarterly Board Meeting. When additional or special
meetings are held, the meeting fees are paid to those Trustees in attendance.
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, 2006, such
meeting-related expenses amounted to $22,559.
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 $454,307 and debited additional paid-in capital in the
amount of $454,307 at June 30, 2006. This adjustment had no impact on the Fund's
aggregate net assets at June 30, 2006. 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.
At June 30, 2006, the Fund had a capital loss carryover of $2,391,120 of
which $2,121,836 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.
The tax character of distributions:
Year Ended June 30,
2006 2005
---------- ----------
Net tax-exempt income $7,658,064 $5,604,701
Ordinary income 459,466 385,843
---------- ----------
$8,117,530 $5,990,544
========== ==========
As of June 30, 2006, the components of distributable earnings on a tax
basis were as follows:
Accumulated net realized loss $(2,391,121)
Unrealized depreciation (1,317,569)
-----------
$(3,708,690)
===========
At June 30, 2006, 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
CLASS A
--------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
12/31/06 --------------------------------------------------------------
(UNAUDITED) 2006 2005 2004 2003 2002
----------- -------- -------- -------- -------- --------
Net asset value, beginning of period ......... $ 9.87 $ 10.26 $ 9.91 $ 10.31 $ 9.85 $ 9.65
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income ...................... 0.20 0.40+ 0.41+ 0.43++ 0.44+ 0.46+
Net gain (loss) on securities (both realized
and unrealized) .......................... 0.30 (0.37) 0.38 (0.37) 0.48 0.22
-------- -------- -------- -------- -------- --------
Total from investment operations ........... 0.50 0.03 0.79 0.06 0.92 0.68
-------- -------- -------- -------- -------- --------
Le distributions (note 10):
Dividends from net investment income ....... (0.21) (0.42) (0.44) (0.46) (0.46) (0.48)
Distributions from capital gains ........... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total distributions ........................ (0.21) (0.42) (0.44) (0.46) (0.46) (0.48)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ............... $ 10.16 $ 9.87 $ 10.26 $ 9.91 $ 10.31 $ 9.85
======== ======== ======== ======== ======== ========
Total return (not reflecting sales charge) ... 5.08%* 0.28% 8.06% 0.54% 9.55% 7.22%
Ratios/supplemental data
Net assets, end of period (in thousands) ... $143,644 $142,227 $126,091 $ 94,103 $ 85,329 $ 55,957
Ratio of expenses to average net assets .... 0.67%** 0.64% 0.59% 0.48% 0.43% 0.46%
Ratio of net investment income to average
net assets ............................... 3.88%** 3.90% 3.98% 4.19% 4.31% 4.65%
Portfolio turnover rate .................... 11.96%* 9.61% 8.68% 15.98% 6.43% 27.42%
The expense and net investment income ratios without the effect of the waiver of a portion of the management fee and the expense
reimbursement were (note 3):
Ratio of expenses to average net assets .... 0.96%** 0.93% 0.97% 0.94% 1.02% 1.00%
Ratio of net investment income to average
net assets ............................... 3.59%** 3.61% 3.60% 3.73% 3.72% 4.11%
The expense ratios after giving effect to the waiver, reimbursement and expense offset for uninvested cash balances were (note 3):
Ratio of expenses to average net assets .... 0.66%** 0.61% 0.56% 0.47% 0.42% 0.40%
- ----------------
+ 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.
TAX-FREE FUND FOR UTAH
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
CLASS C
----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
12/31/06 -----------------------------------------------------------------
(UNAUDITED) 2006 2005 2004 2003 2002
----------- -------- -------- -------- -------- --------
Net asset value, beginning of period ..... $ 9.87 $ 10.26 $ 9.91 $ 10.30 $ 9.85 $ 9.64
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income .................. 0.16 0.32+ 0.32+ 0.34++ 0.34+ 0.37+
Net gain (loss) on securities (both
realized and unrealized) ............. 0.29 (0.37) 0.38 (0.36) 0.48 0.23
-------- -------- -------- -------- -------- --------
Total from investment operations ......... 0.45 (0.05) 0.70 (0.02) 0.82 0.60
-------- -------- -------- -------- -------- --------
Less distributions (note 10):
Dividends from net investment income ... (0.17) (0.34) (0.35) (0.37) (0.37) (0.39)
Distributions from capital gains ....... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total distributions .................... (0.17) (0.34) (0.35) (0.37) (0.37) (0.39)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ........... $ 10.15 $ 9.87 $ 10.26 $ 9.91 $ 10.30 $ 9.85
======== ======== ======== ======== ======== ========
Total return (not reflecting sales charge) 4.56%* (0.52)% 7.20% (0.16)% 8.48% 6.36%
Ratios/supplemental data
Net assets, end of period (in thousands) $ 32,278 $ 33,791 $ 27,581 $ 21,961 $ 16,420
Ratio of expenses to average net assets 1.47%** 1.44% 1.39% 1.27% 1.31% 1.34%
Ratio of net investment income to
average net assets ................... 3.09%** 3.10% 3.18% 3.38% 3.39% 3.72%
Portfolio turnover rate ................ 11.96%* 9.61% 8.68% 15.98% 6.43% 27.42%
The expense and net investment income ratios without the effect of the waiver of a portion of the management fee and the expense
reimbursement were (note 3):
Ratio of expenses to average net assets 1.76%** 1.72% 1.77% 1.74% 1.81% 1.78%
Ratio of net investment income to
average net assets ................... 2.80%** 2.81% 2.80% 2.93% 2.89% 3.28%
The expense ratios after giving effect to the waiver, reimbursement and expense offset for uninvested cash balances were (note 3):
Ratio of expenses to average net assets 1.46%** 1.41% 1.36% 1.27% 1.30% 1.28%
CLASS C
----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
12/31/06 -----------------------------------------------------------------
(UNAUDITED) 2006 2005 2004 2003 2002
----------- -------- -------- -------- -------- --------
Net asset value, beginning of period ..... $ 9.90 $ 10.29 $ 9.94 $ 10.34 $ 9.89 $ 9.68
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income .................. 0.21 0.42+ 0.42+ 0.44++ 0.42+ 0.50+
Net gain (loss) on securities (both
realized and unrealized) ............. 0.30 (0.37) 0.39 (0.36) 0.50 0.20
-------- -------- -------- -------- -------- --------
Total from investment operations ......... 0.51 0.05 0.81 0.08 0.92 0.70
-------- -------- -------- -------- -------- --------
Less distributions (note 10):
Dividends from net investment income ... (0.22) (0.44) (0.46) (0.48) (0.47) (0.49)
Distributions from capital gains ....... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total distributions .................... (0.22) (0.44) (0.46) (0.48) (0.47) (0.49)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ........... $ 10.19 $ 9.90 $ 10.29 $ 9.94 $ 10.34 $ 9.89
======== ======== ======== ======== ======== ========
Total return (not reflecting sales charge) 5.18%* 0.49% 8.27% 0.76% 9.55% 7.41%
Ratios/supplemental data
Net assets, end of period (in thousands) $ 43,773 $ 39,791 $ 17,928 $ 8,233 $ 883 $ 30
Ratio of expenses to average net assets 0.47%** 0.44% 0.39% 0.28% 0.30% 0.36%
Ratio of net investment income to
average net assets ................... 4.08%** 4.10% 4.15% 4.41% 4.17% 4.75%
Portfolio turnover rate ................ 11.96%* 9.61% 8.68% 15.98% 6.43% 27.42%
The expense and net investment income ratios without the effect of the waiver of a portion of the management fee and the expense
reimbursement were (note 3):
Ratio of expenses to average net assets 0.76%** 0.72% 0.77% 0.74% 0.78% 0.80%
Ratio of net investment income to
average net assets ................... 3.79%** 3.82% 3.78% 3.95% 3.70% 4.31%
The expense ratios after giving effect to the waiver, reimbursement and expense offset for uninvested cash balances were (note 3):
Ratio of expenses to average net assets 0.46%** 0.41% 0.37% 0.27% 0.29% 0.30%
- ----------
+ 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 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,
2006 and held for the six months ended December 31, 2006.
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".
SIX MONTHS ENDED DECEMBER 31, 2006
ACTUAL
TOTAL RETURN BEGINNING ENDING EXPENSES
WITHOUT ACCOUNT ACCOUNT PAID DURING
SALES CHARGES(1) VALUE VALUE THE PERIOD(2)
- --------------------------------------------------------------------------------
Class A 5.08% $1,000.00 $1,050.80 $ 3.41
- --------------------------------------------------------------------------------
Class C 4.56% $1,000.00 $1,045.60 $ 7.53
- --------------------------------------------------------------------------------
Class Y 5.18% $1,000.00 $1,051.80 $ 2.38
- --------------------------------------------------------------------------------
(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 0.66%, 1.46% AND
0.46% 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.
SIX MONTHS ENDED DECEMBER 31, 2006
HYPOTHETICAL
ANNUALIZED BEGINNING ENDING EXPENSES
TOTAL ACCOUNT ACCOUNT PAID DURING
RETURN VALUE VALUE THE PERIOD(1)
- --------------------------------------------------------------------------------
Class A 5.00% $1,000.00 $1,021.88 $ 3.36
- --------------------------------------------------------------------------------
Class C 5.00% $1,000.00 $1,017.85 $ 7.43
- --------------------------------------------------------------------------------
Class Y 5.00% $1,000.00 $1,022.89 $ 2.35
- --------------------------------------------------------------------------------
(1) EXPENSES ARE EQUAL TO THE ANNUALIZED EXPENSE RATIO OF 0.66%, 1.46% AND
0.46% 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 22, 2006. The holders of shares representing 78% 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.
DOLLAR AMOUNT OF VOTES:
-----------------------
TRUSTEE FOR WITHHELD
------- --- --------
Tucker Hart Adams $165,938,367 $ 1,468,873
Gary C. Cornia $166,388,131 $ 1,019,100
Thomas A. Christopher $166,417,149 $ 990,082
Diana P. Herrmann $166,330,903 $ 1,076,337
Lyle W. Hillyard $165,894,391 $ 1,512,849
John C. Lucking $166,377,117 $ 1,030,113
Anne J. Mills $166,438,259 $ 968,971
2. To act on the selection of Tait, Weller & Baker LLP as the Fund's
independent registered public accounting firm.
Dollar Amount of Votes:
-----------------------
FOR AGAINST ABSTAIN
--- ------- -------
$165,164,307 $217,067 $2,025,865
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INFORMATION AVAILABLE (UNAUDITED)
Much of the information that the funds in the Aquila Group of Funds(SM)
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
http://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 http://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 (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, 2006 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.
- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION (UNAUDITED)
RENEWAL OF THE ADVISORY AND ADMINISTRATION AGREEMENT
Renewal until December 31, 2007 of the Advisory and Administration
Agreement (the "Advisory Agreement") between the Fund and the Manager was
approved by the Board of Trustees and the independent Trustees in December,
2006. At a meeting called and held for that purpose at which a majority of the
independent Trustees were present in person, the following materials were
considered:
o Copies of the agreements to be renewed;
o A term sheet describing the material terms of the agreements;
o The Annual Report of the Fund for the year ended June 30, 2006;
o A report, prepared by the Manager and provided to the Trustees in
advance of the meeting for the Trustees' review, containing data
about the performance of the Fund, data about its fees, expenses and
purchases and redemptions of capital stock together with comparisons
of such data with similar data about other comparable funds, as well
as data as to the profitability of the Manager; and
o Quarterly materials reviewed at prior meetings on the Fund's
performance, operations, portfolio and compliance.
The Trustees reviewed materials relevant to, and considered the following
factors:
THE NATURE, EXTENT, AND QUALITY OF THE SERVICES PROVIDED BY THE MANAGER.
The Manager has provided local management of the Fund's portfolio. The
Trustees noted that the Manager employed Mr. Thomas S. Albright and Mr. Kimball
Young as co-portfolio managers for the Fund and has established facilities for
credit analysis of the Fund's portfolio securities. Mr. Young, based in Salt
Lake City, has extensive municipal bond underwriting experience and has provided
local information regarding specific holdings in the Fund's portfolio. Mr.
Albright has over 25 years of investment management experience. The portfolio
managers have also been available to and have met with the brokerage and
financial planner community and with investors and prospective investors to
provide them with information generally about the Fund's portfolio, with which
to assess the Fund as an investment vehicle for residents of Utah in light of
prevailing interest rates and local economic conditions.
The Board considered that the Manager had provided all services the Board
deemed necessary or appropriate, including the specific services that the Board
has determined are required for the Fund, given that its purpose is 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. The Board considered the nature and extent of the Manager's supervision of
third-party service providers, including the Fund's shareholder servicing agent
and custodian. The Board considered that the Manager had established and
maintained a strong culture of ethical conduct and regulatory compliance.
The Board concluded that the services provided were appropriate and
satisfactory and that the Fund would be well served if they continued.
Evaluation of this factor weighed in favor of renewal of the Advisory Agreement.
THE INVESTMENT PERFORMANCE OF THE FUND AND THE MANAGER.
The Board reviewed each aspect of the Fund's performance and compared its
performance with that of its competitors, with national averages and the
benchmark index. It was noted that the materials provided by the Manager
indicated that the Fund had investment performance that exceeded or was
comparable to that of its peers for one-, five- and ten-year periods. The Board
considered these results to be consistent with the purposes of the Fund.
The Board concluded that the performance of the Fund, in light of market
conditions, was satisfactory. 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 AND FROM THE RELATIONSHIP WITH THE FUND.
The information provided in connection with renewal contained expense data
for the Fund and its competitors as well as data for all single-state tax-free
municipal bond funds nationwide, including data for all such front-end load
funds of a comparable asset size. The materials also showed the profitability to
the Manager 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 July 1, 2006 through June 30, 2007 so that total Fund
expenses would not exceed the following percentages of the Fund's average net
assets for that period: 0.85 of 1% for Class A Shares, 1.65 of 1% for Class C
Shares and 0.65 of 1% for Class Y Shares. The Manager had indicated that it
intended to continue waiving fees as necessary in order that the Fund would
remain competitive.
The Board compared the expense and fee data with respect to the Fund to
similar data about other funds that it found to be relevant. The Board concluded
that the expenses of the Fund and the fees paid were similar to and were
reasonable as compared to those being paid by single-state tax-free municipal
bond funds nationwide, and by the Fund's competitors.
The Board further concluded that the profitability to the Manager and the
Distributor 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.
Data provided to the Trustees showed that the Fund's asset size had been
increasing in recent years. The Trustees also noted that the materials indicated
that the Fund's fees were already lower than those of its peers, including those
with breakpoints. Additionally, the Trustees noted that the Manager was
currently waiving a substantial portion of its fees. Evaluation of these factors
indicated to the Board 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
RELATIONSHIPS WITH THE FUND.
The Board 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
Board 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.
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FOUNDERS
Lacy B. Herrmann, Chairman Emeritus
Aquila Management Corporation
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
Thomas A. Christopher
Diana P. Herrmann
Lyle W. Hillyard
John C. Lucking
Anne J. Mills
OFFICERS
Diana P. Herrmann, 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
Robert W. Anderson, Chief Compliance Officer
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
TRANSFER AND SHAREHOLDER SERVICING AGENT
PFPC INC.
101 Sabin Street
Pawtucket, RI 02860
CUSTODIAN
JPMorgan Chase Bank, N.A.
1111 Polaris Parkway
Columbus, Ohio 43240
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Tait, Weller & Baker LLP
1818 Market Street, Suite 2400
Philadelphia, PA 19103
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. 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 INVESTMENT
COMPANY 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 9, 2007
By: /s/ Joseph P. DiMaggio
- - - -----------------------------------
Chief Financial Officer and Treasurer
March 9, 2007
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 9, 2007
By: /s/ Joseph P. DiMaggio
- - - -----------------------------------
Joseph P. DiMaggio
Chief Financial Officer and Treasurer
March 9, 2007
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.